EXAM REVISION MCQ FINANCE IFP

The balance sheet contains which of the following?

• A. Current assets

• B. Expenses

• C. Sales revenue

• D. Cost of Goods sold

Which of the following pairs of accounts usually have credit balances b/d?

• A. Capital and cash

• B. Assets and loans

• C. Sales and assets

• D. Liabilities and sales

Given the following information, calculate the gross profit:

Sales Revenue £100 000, direct material £20 000, direct wages £50 000, rent £10 000, utility expenses £5 000

• A. £5 000

• B. £15 000

• C. £30 000

• D. £80 000

Using the accounting equation rule, which of the following is incorrect?

Assets               Liabilities          Capital

• A.         7800                 1200                 6900

• B.         8200                 2800                 5400

• C.         5500                 1050                 4450 

• D.        6540                1120                5420

Which of the following is a current liability?

 

• A.         Long term loan

• B.         Water bill paid in advance

• C.         Unpaid material

• D.        Mortgage

Sales for the year are £900 000, cost of direct materials are £90 000, rent £30 000, utilities £20 000, Salaries £500 000.

Calculate the operating profit for the year.

• A. £206 000

• B. £260 000

• C. £590 000

• D. £810 000

A car costing £28 000 is depreciated at 20% per annum by the straight-line method. It is sold after four years for £10 000. Which one of the following statements is true?

• A. The firm has made a £15 600 profit

• B. The firm has made a £5 600 loss

• C. The firm has made a £18 000 loss

• D. The firm has made a £4 400 profit

Which of the following is long term external source of financing?

• A. Bank overdraft

• B. Debentures

• C. Trade credit

• D. All of the above

 

Preference shares dividends are paid out to shareholders after ordinary / common stock dividends. Is this statement true or false?

•  

  A.         True

• B.         False

Material bought on credit is always recorded on the credit side of the materials T-account.

 

 

• A.         True

• B.         False