Accounting MCQs

Question 1

An overstatement in the value of closing stock overstates all of the following except

Accepted Answer

Cost of goods sold

Answer

Net income

Answer

Current assets

Answer

Capital of the business

Question 2

All of the following are the methods of inventory costing except

Accepted Answer

Stock take

Answer

FIFO

Answer

LIFO

Answer

AVCO or average cost

Question 3

Which one of the following methods of inventory costing yields highest taxable income?

Accepted Answer

FIFO

Answer

LIFO

Answer

AVCO or averrage cost

Answer

Standard cost method

Question 4

Which one of the following methods of inventory costing produces ending stock cost close to the market value of the inventory?

Accepted Answer

FIFO

Answer

LIFO

Answer

AVCO or averrage cost

Answer

None of the above

Question 5

Which one of the following inventory costing methods is supposed to issue the most recently purchased goods?

Accepted Answer

LIFO

Answer

FIFO

Answer

AVCO or averrage cost

Answer

Moving average

Question 6

Opening inventory + Net purchases = ?

Accepted Answer

Cost of goods available for sale

Answer

Ending inventory

Answer

Closing stock

Answer

Cost of goods manufactured

Question 7

Cost of goods available for sale - closing inventory = ?

Accepted Answer

Cost of goods sold

Answer

Opening inventiry

Answer

Cost of opening finished goods inventory

Answer

Work in progress ending inventory

Question 8

NRV or net realizable value of inventory is the expected selling price or market value less

Accepted Answer

Expenses necessary to complete sale

Answer

Carry value of the inventory

Answer

Cost of the stock

Answer

Replacement cost

Question 9

Under which method of inventory costing, a pre-determined cost is assigned to all items of inventory?

Accepted Answer

Standard cost method

Answer

Replacement cost method

Answer

AVCO or average cost

Answer

FIFO method