GENERAL ACCOUNTING PRINCIPLES (GENERAL STUDIES)Total Questions: 5011. Gross profit is,(a) Cost of goods sold + Opening stock(b) Excess of sales over cost of goods sold(c) Sales fewer Purchases(d) Net profit fewer expenses of the periodCorrect Answer: (b) Excess of sales over cost of goods sold12. Net profit is computed in the:(a) Profit and loss account(b) Balance sheet(c) Trial balance(d) Trading accountCorrect Answer: (a) Profit and loss account13. In order to find out the value of the closing stock during the end of the financial year we,(a) do this by stocktaking(b) deduct the cost of goods sold from sales(c) deduct opening stock from the cost of goods sold(d) look in the stock accountCorrect Answer: (a) do this by stocktaking14. Which of these best explains fixed assets?(a) Are bought to be used in the business(b) Are expensive items bought for the business(c) Are items which will not wear out quickly(d) Are of long life and are not purchased specifically for resaleCorrect Answer: (d) Are of long life and are not purchased specifically for resale15. The charges of placing commodities into a saleable condition should be charged to:(a) Trading account(b) P & L a/c(c) Balance Sheet(d) None of the aboveCorrect Answer: (a) Trading account16. In the absence of Partnership deed profit sharing ratio will be:(a) Equal ratio irrespective of partners capitals.(b) Senior partner will get more profit(c) Capital Ratio(d) Profits will not be distributedCorrect Answer: (a) Equal ratio irrespective of partners capitals.17. Partners collectively are called :(a) Firm’s name(b) Business(c) Firm(d) CompanyCorrect Answer: (c) Firm18. It is better to have the agreement in writing to avoid any ______.(a) Case(b) Audit(c) Dispute(d) LossCorrect Answer: (c) Dispute19. Which of the following is not a content of partnership deed?(a) Interest on Partner’s Loan(b) Interest on Bank Loan(c) Interest on Capital(d) Interest on DrawingsCorrect Answer: (b) Interest on Bank Loan20. The persons who have entered into a partnership business with one another are individually called(a) Firm(b) Company(c) Co-operatives(d) PartnerCorrect Answer: (d) PartnerSubmit Quiz« Previous12345Next »
