CBSE Questions for Class 11 Commerce Accountancy Financial Statements 1 Quiz 8 - MCQExams.com

Consider the following data pertaining to H Ltd. For the month of March

2005:
ParticularsStock
As on march 1, 2005 1,80,000
As on march 31, 2005 90,000
The company made purchases amounting to 3,30,000 on credit. During the

month of march 2005, the company paid a sum of 3,50,000 to the suppliers. The goods are sold at 25% above the cost. The sale for the month of march 2005 were:
  • 4,12,500
  • 5,25,000
  • 90,000
  • 3,15,000
Which of the following Accounts/ Statements shows the financial position of the business?
  • Profit and Loss Account.
  • Balance Sheet.
  • Funds Flow Statement.
  • Cash-Book.
Cost of goods sold Rs. 1,20,000, Gross Loss 1/4 of sales. What will be the amount of sales?
  • $$90,000$$
  • $$96,000$$
  • $$1,44,000$$
  • $$1,50,000$$
Sales - Purchase - Operating expenses is equal to __________.
  • net profit
  • gross profit
  •  operating profit
  • none of these
Operating profit is the excess of operating expenses over operating revenues.
  • True
  • False
In case the opening stock was Rs 5,000, purchases Rs 15,000, direct expenses Rs 2,000 and closing stock Rs 2,500, the cost of goods sold had been _____________.
  • Rs 20,000
  • Rs 19,500
  • Rs 21,500
  • Rs 22,000
The formula used for computation of cost of goods sold is __________________.
  • Opening stock $$+$$ Purchases
  • Opening stock $$+$$ closing stock
  • Opening stock $$+ Purchases -$$ closing stock
  • Opening stock $$+ Purchases +$$ closing stock
ParticularsRs
Opening Stock10,000
Closing Stock6,000
Purchases5,000
Gross Profit10% of sales
What is the amount of sales?
  • Rs 9,000
  • Rs 10,000
  • Rs 11,000
  • Rs 15,000
Final accounts/statements means ______________.
  • Balance Sheet
  • Profit and Loss A/c
  • Trading Account
  • All of these
The aim of preparing Trading Account is to find out _____________.
  • Gross profit or gross loss
  • Net profit or net loss
  • Financial position of the business
  • None of these
If opening stock is $$Rs. 16,000$$, Purchases $$Rs. 12,000$$ and closing stock $$Rs. 2,000$$. What is the cost of goods sold?
  • $$Rs. 28,000$$
  • $$Rs. 26,000$$
  • $$Rs. 30,000$$
  • $$Rs. 12,000$$
Consider the following for Madhav Co. for the year 2005-06:
ParticularsRs
Cost of goods available for sale1,00,000
Total sales80,000
Opening stock of goods20,000
Gross profit margin25%
Closing stock of goods for the year 2005-06 was:
  • Rs 80,000
  • Rs 60,000
  • Rs 40,000
  • Rs 36,000
Operating profit represents the spending power of the company with regard to revenues generated from ongoing operations. 
  • True
  • False
The concept of _______ is used to investigate the profit-making potential of a business, excluding all extraneous factors.
  • operating loss
  • operating profit
  • operating expense
  • None of the above
Read the following which is taken from an income statement.
Rs.
Opening stock$$50,000$$
Sales$$1,60,000$$
Freight incurred$$10,000$$
Sales returns$$10,000$$
Gross profit on sales$$60,000$$
Net loss for the year$$10,000$$
Purchases$$1,00,000$$
Purchases returns$$9,000$$
The cost of goods sold will be
  • $$Rs. 1,00,000$$
  • $$Rs. 90,000$$
  • $$Rs. 1,60,000$$
  • $$Rs. 1,10,000$$
If operating income is negative, a business will likely require additional outside funding to remain in operation.
  • True
  • False
Ascertain cost of goods sold from the following figures:
Rs.
Opening stock$$8,500$$
Purchases$$30,700$$
Direct expenses$$4,800$$
Indirect expenses$$5,200$$
Closing stock$$9,000$$
  • $$Rs. 40,200$$
  • $$Rs. 35,500$$
  • $$Rs. 35,000$$
  • $$Rs. 49,200$$
Operating profit is also known as operating income, or earning before _______.
  • Investment and Income
  • Income and Taxes
  • Interest and Taxes
  • Investment and Taxes
Computers of a firm should be classified as__________. 
  • fixed assets
  • current assets
  • liquid assets
  • wasting assets
_______ is the income earned from the core operations of a business, excluding any financing or tax-related issues.
  • Operating profit
  • Operating loss
  • Operating expenses
  • Operating income
Ascertain gross profit from the following figures.
Rs.
Opening stock$$5,570$$
Purchase$$13,816$$
Sales$$15,248$$
Purchase returns$$390$$
Returns inward$$524$$
Wages paid$$1400$$
Import charges$$250$$
Closing stock$$8,880$$
  • $$Rs. 2,958$$
  • $$Rs. 4,358$$
  • $$Rs. 3,816$$
  • $$Rs. 4,202$$
When sale is $$Rs. 48,00,000$$, gross loss is $$25$$% on cost, purchase is $$Rs. 35,00,000$$ and closing stock is $$Rs. 6,00,000$$ the stock in the beginning would be _________. 
  • $$Rs. 7,00,000$$
  • $$Rs. 9,40,000$$
  • $$Rs. 13,40,000$$
  • $$Rs. 35,00,000$$
Final accounts include preparation of_______.
  • Trading A/c
  • Profit & Loss A/c
  • Balance Sheet
  • All of the above
Sales + Closing stock - purchases - Gross profit = ____________.
  • Opening Stock
  • Closing Stock
  • Cost of goods sold
  • Purchases return
If sales are $$Rs. 6,00,000$$; Gross profit is $$1/3$$ on cost; Purchases are $$Rs. 4,90,000$$ and the Closing stock is $$Rs. 90,000$$, then the opening stock will be_________. 
  • Nil
  • $$Rs. 50,000$$
  • $$Rs. 2,00,000$$
  • $$Rs. 4,90,000$$
Given that:
$$M = Opening\ Stock$$
$$N = Purchases$$
$$O = Closing Stock$$
$$P =$$ Cost of goods sold
The correct equations will be:
  • $$M - N = O + P$$
  • $$M - O = P - O$$
  • $$M - O = P - N$$
  • $$P - M = N + O$$
Operating profit is calculated as:
 Net profit + Non operating incomes - Non operating Expenses.
  • True
  • False
The manufacturing account is prepared __________________.
  • To ascertain the profit or loss on the goods produced
  • To ascertain the cost of the manufactured goods
  • To show the sale proceeds from the goods produced during the year
  • Both (B) and (C)
Calculate operating profit:
operating revenue = Rs. 10,000,000; COGS = Rs. 4,000,000; general and administrative expenses = Rs. 3,000,000; interest expense= Rs. 4,000,000; and income taxes = 900,000.
  • Rs. 2,500,000
  • Rs. 4,000,000
  • Rs. 2,000,000
  • Rs. 3,000,000
In ____________ approach assets which are to be used for long term in the business and are not meant to be sold are presented first and assets which are most liquid such as cash in hand, are presented at the bottom.
  • Alphabetical order
  • Permanence order
  • Liquidity order
  • None of the above
0:0:1


Answered Not Answered Not Visited Correct : 0 Incorrect : 0

Practice Class 11 Commerce Accountancy Quiz Questions and Answers