According to which concept, proprietor of a business is treated as a creditors to the

extent of his capital:

Business entity

Revenue is generally recognized as being earned at the point of time:

Sale is effected

Income received in advance by a business units is____.

A liability

Cost of goods sold plus selling expenses equals:

Gross profit

Sales ledger contains accounts of:

Suppliers

Cash purchase of fixed asset is entered in the:

Cashbook

__________is the main book of accounts in business.

Ledger

Trading account is a _______ account.

Nominal

Cash discount is allowed by:

Creditor

Special journal is also called:

Subsidiary books

Total sales made during a year is found out from the:

Sales account

The error disclosed by Trial Balance is:

Wrong amount posted in ledger account

__________is the second important stage in the accounting cycle. Ledger

Purchase ledger contains the accounts of:

Creditors
Normally value of closing stock ________ in the trial balance
Does not Appear
A business can determine whether it is progressing satisfactorily by comparing
operating results with ____.
Industry standards

Results of previous fiscal periods

Acceptable component percentages

All of the above

To assure that each work sheet adjustment is journalized, how should the entries by
recorded?
In the order of the letters assigned to each adjustment on the work sheet

Which of the following does not appear in Balance sheet?

Rent expenses
The measure of a company's ability to pay its current liabilities is known as ____.
Current ratio

A corporation balance sheet reports ____.

Assets, liabilities, and stockholders' equity on a specific date

The difference between an asset's account balance and its related contra account balance is
known as ____.

Book value
Preparing financial statements at the end of a fiscal year is an application of the accounting
concept ____.
Accounting Period Cycle

Which of the following financial reports shows the profitable of a business?

Income statement

_______________ refers to the amount invested in various components of current

assets.
Gross working capital

Permanent working capital :

Is the amount of current assets required to meet a firm's long-term minimum needs

Working Capital Turnover measures the relationship of Working Capital with:

Fixed Assets

Net working capital refers to :

To meet day-to-day financial obligations of the company

Which of the following would be consistent with a more aggressive approach to

financing working capital?
Financing some long-term needs with short-term funds.

Current ratio is 4:1.Net Working Capital is Rs.30,000. Find the amount of current Assets.
40000

The addition of all current assets investment is known as...

Gross Working capital

With reference to Working Capital Management, the term 'float' relates to:
Cash management

__________refers to gross current assets.

Gross Working capital
Current ratio is 2:5.Current liability is Rs.30000.The Net working capital is :
(-)18000

Which of the following working capital strategies is the most aggressive?

Making greater use of short term finance and minimizing net short term asset
XYZ is an oil based business company, which does not have adequate working
capital. It fails to meet its current obligation, which leads to bankruptcy. Identify the
type of decision involved to prevent risk of bankruptcy.
Liquidity decision

Warehouses and stockyards are two types of storage facilities. Which of the following is the
most appropriate factor to consider in the design of a stockyard?
Surface

When using the 'ABC' approach to stock categorisation. Which of the following
describes class 'C' items?
Low value, low risk

Inventory Turnover measures the relationship of inventory with:

Cost of Goods Sold

Which of the following stock valuation methods is based on a cost estimate made
before the part is purchased?
Standard costing

Which of the following is a method for eliminating the bullwhip or 'Forrester Effect'?
Timely communication of sales figures throughout the supply chain [KEY]

In Inventory Turnover calculation, what is taken in the numerator?

Cost of Goods Sold

________indicates the relationship between a financial institution (called as the

“factor”) and a business organisation (called as the “client”) who in turn sells the
goods/services to its customers (called as the “customer”), whereby the factor
purchases book debts of the client, either with recourse or without recourse, and in
relation thereto controls the credit extended to the customers and administers the
sales ledger of the client.
Factoring

___________are the items of cash flow which arise as the result of other operations of the
business.
Non-operative cash flows