911. During the year 2011-2012, the value of closing inventory was overstated by 25,000. Which of the following is true?
A: The cost of goods sold was overstated during 2011-2012 and income will be understated during 2012-2013
B: The income was overstated during 2011-12 and closing inventory will be overstated during 2012-2013
C: The retained earnings was overstated during 2011-2012 and retained earnings will be understated during 2012-2013
D: The cost of goods sold was understated during 2011-2012 but retained earnings will not be affected during 2012-2013
912. Which of the following errors is an error of omission?
A: Sale of ` 100 was recorded in the Purchases Journal
B: Wages paid to Mohan have been debited to his account
C: The total of the sales journal has not been posted to the Sales Account
D: Repairs to buildings have been debited to the buildings account
913. Journals are also referred to as:
A: Book of entries
B: Book of original entries
C: T account
D: Books of economic events
914. The standard format of the journal does not include which of the following?
A: Assets column
B: Date column
C: Description column
D: Amount column
915. Cost of goods produced includes:
A. Production cost and finished goods inventory
B. Production cost and work in progress
C. Creation cost, work in progress, and completed products stock
D. Cost of goods sold
916. Cost of goods included:
A. Cost of creation and work underway
B. Cost of production and finished goods inventory
C. Production work in progress and inventory of finished goods costs
917. An overstatement of work in progress at the end of a period will:
A. Overstate the cost of goods produced
B. Understate current assets
C. Understate gross profit
D. Overstate net profit
918. Conversion cost is equal to the total of:
A. Material cost and direct wages
B. Material cost and indirect wages
C. Factory overhead and direct wages
D. Material cost and factory overhead
919. Multiple costing methods are used in:
A. Oil refinery
B. Car manufacturing company
C. Sugar mill
D. Multi-product company
920. Toy manufacturing companies should use:
A. Unit costing
B. Batch costing
C. Job costing
D. Multiple costing
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