61. In accounting and finance, the goods which are purchased for the purpose of resale are known as
(A) Inventory
(B) Purchases
(C) Merchandise
(D) Traded goods

62. The main source(s) of Generally Accepted Accounting Principles (GAAP) is/are:
(A) Company Law
(B) Accounting standards
(C) Both A and B
(D) None of these

63. What standards are used to prepare financial statements by most of the countries and companies
(A) International Financial Reporting Standards
(B) International Financial Accounting Standards
(C) International Accounting & Auditing Standards
(D) International Risk Reporting Standards

64. The correct form of Accounting equation is
(A) Assets + Liabilities = Equity
(B) Assets – Liabilities = Equity
(C) Assets – Receivable = Equity
(D) Assets + Receivable = Equity

65. A company sold goods worth $5,000 on 5 June and $10,000 on 28 June. The company received the first payment on 25 June and second on 7 July. The company prepared the financial statement on 30 June. What would be the total sale on the financial statement?
(A) $0
(B) $5,000
(C) $10,000
(D) $15,000

66. Advance payments are recognized as

(A) receivable
(B) payable
(C) bad debt
(D) none of these

67. The capital of a business would change as a result of:
(A) Raw material being purchased on credit
(B) Non-current assets being purchased on credit
(C) A supplier being paid by cheque
(D) Wages being paid in cash

68. Which of the following is an indirect cost?
(A) carriage inwards
(B) production wages
(C) production materials
(D) factory rent

69. There is a debit balance on the office expenses at the end of the financial year. In which section of the balance sheet this will be recorded?
(A) capital
(B) current assets
(C) current liabilities
(D) fixed assets

70. What from the following is NOT a current asset?
(A) Patent rights
(B) Inventory
(C) Cash
(D) Trade receivables

NOTE
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