SAMPLE QUIZ

_____________is a business that purchases finished products that are ready  for sale and resells them to  customers. 

• •Manufacturing business

• •business

• •Merchandise business

• •None of the options

EOM means______

• •Net payment due at the end of the month

• •Full payment due at the beginning of the money

• •Full payment due at the end of the month

• •Full payment due at the end of the month in which invoice is received

Which of the following is an example for merchandise business?

• •Auto dealership

• •Cloth store

• •Super market

• •All of the options

In a merchandising sales  transaction, the ______sells a  product and transfers the legal  ownership (title) of the goods to  the_______.

• •Seller, Seller,

• •Buyer, buyer

• •Buyer, seller

• •Seller, buyer

Which of the following inventory method is oldest?

• •FIFO

• •LIFO

• •Specific Identification

• •Weighted average

Seller bears the entire cost of shipment or freight charges- which term is used for the above?

• •FOB Destination

• •FOB Shipping point

• •Shipping term

• •None of the options

. Which of the following account/s having normal debit balance?

• •Merchandise inventory

• •Cost of goods sold

• •Both A& B

• •None of the options

Which of the following inventory method is no longar followed and is scrapped?

• •FIFO

• •Specific Identification

• •LIFO

• •Weighted average

Which inventory method is used for high Valued (price) inventory?

• •Specific Identification

• •Weighted average

• •LIFO

• •FIFO

1.On 1 June 2020, Aziz LLC purchased goods from Mohsin LLC on credit terms 2/10, n/ 30 amounting Ro 40000.  Paid the amount due on 12th June 2020. Identify the total amount paid by the Mr Aziz.

• 40,000

• 8,000

• 48,000

• 32,000