Carriage outward is Debited under main head:

• A) Expenses
• B) Income
• C) Assets
• D) Libilities

Discount received from a creditor is Debited under main head:

• A) Liabilities
• B) Assets
• C) Income
• D) Expenses

When correct accounting effect (Dr/Cr) is given in the wrong accounting head as well as the wrong main head, it is known as:

• A) Error of commission
• B) Error of omission
• C) Error of principle
• D) Error of original entry

The unexpired portion of direct cost is treated as:

• A) Expense
• B) Income
• C) Liability
• D) Asset

In a manufacturing concern, salary of supervisor is included in _________.

• A) Operating expense
• B) Selling expenses
• C) Administrative expense
• D) Cost of goods sold

Opening direct material inventory is adjusted with ____________ of direct material, to calculate the cost of sales.

• A) Income
• B) Purchases
• C) Liabilities
• D) Sales

Sales return account is a/an __________.

• A) Contra item
• B) Expense item
• C) Liability item
• D) Purchase item

Which of the following is an error of commission?

• A) A payment to a debtor Mr. A is recorded in the account of another debtor Mr. B
• B) Purchase of vehicle is recorded in repairs account
• C) A receipt of Rs. 50,000 from a debtor is recorded as Rs. 5,000 in his account
• D) Bank charges being deducted by the bank without our knowledge

The entry of raw material issued to production units is:

• A) Debit: Work in process A/c Credit: Material Stock A/c
• B) Debit: Raw material A/c Credit: Work in process A/c
• C) Debit: Work in process A/c Credit: Factory overhead A/c
• D) Debit: Work in process A/c Credit: Finished goods A/c

Which of the following should be debited when production is completed in manufacturing concern?

• A) Finished goods account
• B) Material account
• C) FOH account
• D) Work in process account

An income statement is prepared for a specific period, which is also known as:

• A) Reporting date
• B) Statement of cash flow
• C) Reporting period
• D) Financial health

Factory overhead cost = Power & fuel cost + ___________.

• A) Other indirect cost
• B) Direct labor cost
• C) Direct material cost
• D) Other direct cost

In a trading concern, salaries of marketing staff is included in _________.

• A) Preliminary expense
• B) Cost of goods sold
• C) Cost of sales
• D) Operating expense

Purchases Rs. 500, Returns outward Rs. 50, Gross Sales Rs. 700 and Gross Profit Rs. 100, Net Purchases =?

• A) Rs. 650
• B) Rs. 450
• C) Rs. 550
• D) Rs. 500

Which of the following should be credited on sale of completed goods on cash basis in manufacturing concern?

• A) Sales account
• B) Cash account
• C) Finished goods account
• D) Material account

If Work in Process closing inventory is provided as additional information, other than trial balance, then that inventory treated in:

• A) Profit and loss account only
• B) Both profit & loss account and balance sheet
• C) Balance Sheet only
• D) Expense only

Net realizable value of inventory =

• A) Cost of purchase + conversion cost
• B) Cost of purchase - conversion cost
• C) Selling Price + Further Costs to Sell
• D) Selling Price – Further Costs to Sell

Discount received from a creditor is Credited under main head:

• A) Assets
• B) Liabilities
• C) Income
• D) Expenses

Which of the following should be credited on return of raw material to supplier in manufacturing concern?

• A) Voucher payable account
• B) Debtors account
• C) Purchase account
• D) Material account

When correct accounting entry is recorded in the books of accounts but the amount in both accounting effect (Dr & Cr) is wrong, it is known as:

• A) Error of omission
• B) Error of original entry
• C) Error of principle
• D) Error of commission