101. A company had opening inventory of $200,000. Sales and purchases during the period were of $400,000 and $80,000 respectively. What is the gross profit for the period if the closing inventory was worth $100,000?
(A) $20,000
(B) $120,000
(C) $220,000
(D) $320,000

102. Which from the following costs are included in conversion costs?
(A) Carriage in
(B) Carriage outwards
(C) Commission of selling staff
(D) Supervisor’s wages

103. Goods which originally cost $800 were sold for $1,000. In the accounting equation Net Assets will?
(A) Rise by $1,000
(B) Rise by $200
(C) Fall by $1,000
(D) Fall by $200

104. A debit entry usually represents
(A) Assets and Expenses
(B) Assets and Income
(C) Liabilities and Income
(D) Liabilities and Expenses

105. Direct cost incurred can be identified with_______________?
A. Each Department
B. Each unit of output
C. Each Month
D. Each Executive

106. Overhead cost is the total of ____________.
A. all indirect costs.
B. all direct costs.
C. indirect and direct costs.
D. all specific costs

107. Warehouse rent is a part of _________?
A. prime cost.
B. factory cost.
C. distribution cost.
D. production cost

108. Tender is an_____________?
A. estimation of profit.
B. estimation of cost.
C. estimation of selling price.
D. estimation of units.

109. Audit fess is a part of__________.
A. works on cost.
B. selling overhead.
C. distribution overhead.
D. administration overhead

110. Gross Profit is equal to_________?
A. Sales – Cost of goods sold
B. Sales – Closing Stock + Purchases
C. Opening Stock + Purchases – Closing Stock
D. None of the above

NOTE
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PLEASE COMMENT WITH CORRECT ANSWER AND ITS DETAIL EXPLANATION IN COMMENT BOX.
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