901. Net Income before Interest and tax is also called:
A) Operating Income/Profit
(B) Gross Profit
(C) Marginal Income
(D) Other Income
902. “Taking steps for the fresh purchase of those stocks which have been exhausted and for which requisitions are to be honored in future” is an easy explanation of:
(A) Overstocking
(B) Under stocking
C) Replenishment of stock
(D) Acquisition of stock
903. Which of the following items of expense is to be added in FOH cost?
(A) Rent of the factory + Head office rent + salaries to factory watchman
(B) Rent of the factory + factory lighting bill + Directors’ salaries
C) Rent of the factory + factory lighting bill + Factory employees’ salaries
(D) Head office rent + Factory property tax + Factory small tools
904. Which of the following is correct?
A) Units sold = Opening finished goods units + Units produced – Closing finished goods units
(B) Units Sold = Units produced + Closing finished goods units – Opening finished goods units
(C) Units sold = Sales + Average units of finished goods inventory
(D) Units sold = Sales – Average units of finished goods inventory
905. Which of the following statements is true?
A: If a Trial Balance tallies, it always means that none of the transactions has been completely omitted
B: A Trial Balance will not tally if a transaction is omitted
C: A customer to whom goods have been sold on credit cannot avail himself of a cash discount
D: A credit balance in the Pass Book indicates excess of deposits over withdrawals
906. Which of the following assets is/are to be valued at the lower of cost and net realizable value?
A: Goodwill
B: Inventories
C: Investments
D: Both
E: and
907. Which of the following methods is not a practical way of realizing revenue?
A: Delivery method
B: Percentage-of-completion method
C: Production method
D: Moving average method
908. The amount payable to a person as consideration for the use of rights vested in him is:
A: Dividend
B: Royalty
C: Purchase consideration
D: Installment
909. Buildings account is debited with an amount towards repairs. This is an example of:
A: Error of commission
B: Error of principle
C: Error of omission
D: Compensating error
910. The concept of conservatism will have the effect of:
A: Overstatement of Assets
B: Understatement of Assets
C: Overstatement of Liabilities
D: Understatement of Liabilities
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