Principles of Accounts

A. Jones, by mistake, debited C. Hall's A/c instead of F. Hall's. Which of the following transaction will correct the mistake?

• A. Dr Suspense A/c,

  Cr F. Hall A/c

• B. Dr F. Hall A/c

  Cr C. Hall A/c

• C. Dr C. Hall A/c

  Cr Suspense A/c

• D. Dr F. Hall A/c

  Cr. Suspense

Partnerships are formed for the purpose of

I. enjoying limited liability

II. combining capital from different persons

III. benefiting from different skills and specialties

IV. sharing ideas, experience and responsibilities

• A. I and II only

• II and III only

• I, III and IV only

• II, III and IV only

From the information above, what is the cost of good manufactured?

• A. $7,000

• B. $8,000

• C. $9,000

• D. $11,000

In a manufacturing concern, production cost is equal to

• A. admin expenses + factory overheads

• B. total cost + selling & distribution expenses

• C. prime cost + factory overheads

• D. prime cost + admin expenses

What is the value of stock at April 9 bases the LIFO method?

• A. $40

• B. $60

• C. $80

• D. $110

What's is the value of stock at April 9 based on the FIFO method?

• A. $40

• B. $60

• C. $80

• D. $110

Which of the following is a prime cost in Manufacturing Accounts?

• A. Depreciation

• B. Direct wages

• C. General expenses

• D. Production overhead

Raw materials stock, work-in progress stock and finished goods stock are items MOST likely seen together on the balance sheet of a

• A. garage

• B. shoe factory

• C. supermarket

• D. bus company

The purchase of office machinery for $255

cash was entered in the books as follows:

Dr Office machinery $255 Dr Cash$255

What is the double entry required to correct

this error?

• A. Dr Office machinery $255

  Cr Cash $255

• B. Dr Cash $255

  Cr Suspense $255

• C. Dr Suspense $510

  Cr Cash $510

• D. Dr Cash $510

  Dr Suspense $510

When the trial balance fails to agree, the balance must be temporarily entered in a special account known as

• A. Suspense Account

• B. Extended Trial Balance

• C. Bank reconciliation statement

• D. Appropriation Account