SOCIO RESPO '24 Interschool Quiz

What is the primary purpose of accounting?

• Communicating economic information to internal parties interested in the accounting unit

• Preparation of necessary financial statements for management and audit

• Communicate economic information needed for decision making to interested parties about the accounting unit

• Providing economic information required by external financial institutions to obtain financial facilities

• Providing information to outside parties interested In the accounting unit for making investment decisions

A business purchased goods with a list price of Rs.300,000 subject to a trade discount of 5% and then sold them for Rs.325,000 on cash. Creditors are not settled.net effect of this transaction is represented in the accounting equation. ASSETS = EQUITY + LIABILITY

• +325 = +40 + +285

• +25 = +25 + -

• +40 = +40 + -

• +40 = +325 + -285

• +325 = +25 + +300

Credit balance of cash control account (Bank) as at 31.03.2018 was Rs.30,000. Debit balance as per bank statement was Rs.50,000. What is the possible reason for the difference?

• Direct remittance Rs.20,000 has not been recorded in cash control account

• Standing order payments Rs.10,000 has not been recorded in cash control account

• Dividend income received Rs.20,000 has not been recorded in cash control account

• Unpresented cheque Rs.20,000

• Unrealized cheque Rs.20,000

A VAT registered business purchased a stock for Rs.230,000 (including 15% VAT) on credit and sold for Rs.345,000 on credit. What is the net impact on equity of the above transactions?

• Increased by Rs.40,000

• Increased by Rs.60,000

• Increased by Rs.80,000

• Increased by Rs.100,000

• Increased by Rs.120,000

According to LKAS- 02 "INVENTORY" is defined as

• Raw material, work in progress, finished goods.

• Purchase cost, conversion cost, other cost

• FIFO method, WAC method

• Stocks held for sale and stocks held for the preparation of goods for such sale

• Stock value derive after deducting expected selling expenses from expected selling price

The total production costs of a company were Rs.50,000 and Rs.115,000 when production volumes were 8000 units and 20,000 units respectively. When the production volume exceeds 10,000 units, an extra fixed cost of Rs.5000 is required.What is the total production cost when 15,000 units are produced?

• Rs.75,000

• Rs.85,000

• Rs.90,000

• Rs.91,250

• Rs.96,250

A company manufactures a unique product and sells it at a price of Rs.100 per unit. Fixed costs are Rs.35000 and variable cost per unit is Rs.60. What level of sales in units will generate a profit of Rs.5000?

• 550 units

• 667 units

• 850 units

• 875 units

• 1000 units

In cost-volume-profit (CVP) analysis, contribution means the difference between

• Sales revenue and profit

• Sales revenue and total costs

• Sales revenue and fixed costs

• Sales revenue and variable costs

• Sales revenue and cost of sales

Which of the following accounting concepts provides the basis for non-recognition of employee competencies in the financial statements of a business.

• Entity

• Prudence

• Historical cost

• Materiality

• Money Measurement

the prime entry book that is used to record non current assets sold on credit is,

• General Journal

• Sales Journal

• Cash Payments Journal

• Purchase Journal

• Purchase inward journal