Stock Adjustments

Q.

If closing stock does appears in the trial balance and also given as additional information, it should be ___________.

1. Credited to the profit and loss account

2. Deducted from the purchases in the trading account

3. Shown on the asset side of the Balance sheet

4. Credited to the trading account

Q.

What is meant by closing stock? Show its treatment in final accounts.

Q.

Which of the Following Is Not a Cash Inflow?

1. Decrease in debtors

2. Issue of shares

3. Decrease in creditors

4. Sale of fixed assets

Q.

If 'adjusted purchases' and 'closing stock' are given in the trial balance, will you transfer 'closing stock' to trading account? Give reason.

Q.

What do you understand by balancing of account?

Q.

State what is end product of financial accounting

Q.

What is purchase in accounting terms?

Q.

When closing stock is given in trial balance, then it will effect:

1. Balance Sheet

2. Trading account

3. Profit & Loss account

4. Both balance sheet & Trading account

Q.

Which of the Following Is Not a Cash Outflow

1. Increase in Prepaid expenses

2. Increase in debtors

3. Increase in stock

4. Increase in creditors

Q.

What is the sale of fixed assets?

Q.

Which is the most liquid asset in accounting?

Q.

Closing stock is credited in the:

1. Balance sheet

2. Profit & Loss account

3. Trading account

4. None of the above

Q.

Trading Account Is A _______Account

Q.

What is included in a trial balance?

Q.

Which of the following accounts would be reported as assets on the balance sheet? Find the Answer at BYJUS

1. Cash, retained earnings, and accounts receivable.

2. Cash, accounts payable, and notes payable.

3. Cash, accounts receivable, and inventories.

4. Inventories, property and equipment, and common stock.

Q.

If cost of goods sold is Rs. 8, 000, gross margin is Rs. 5, 000, then revenue will be :

1. Rs. 13, 000

2. Rs. 3, 000

3. Rs. 8, 000

4. Rs. 5, 000

Q. Answer in only one sentence :

What are the main types of Trial Balance?

Q.

If closing inventory is accounted for as Rs. 2, 40, 000 instead of Rs. 1, 80, 000:

1. gross profit as well as net profit will be exaggerated

2. gross profit will be exaggerated and net profit understated

3. gross profit will be exaggerated but net profit correctly reported

4. gross profit and net profit would both be understated

Q.

What is the difference between trial balance and balance sheet?

Q. In case of adjusted purchases closing stock will appear in _________.

1. Trial balance
2. Trading account
3. None of these.
4. Profit and loss account

Q.

How often are ledger accounts balanced?

Q.

Q. Enter the following transactions of Sept 1997, in two columns cash book Sept, 1997

1) Started business with cash 25, 000

1) opened bank account 12500

1) cash purchases 2000

2) paid rent by cheque 500

2) Sold goods to Samir 2000

3 Received a crossed cheque from samir 500

3) purchased goods for cash, amount paid by cheque 1500

3) Sold goods for cash, amount received by cheque 1000

4) Purchased goods from Vipan and paid by Cheque which was received for sales 1000

4) purchased goods from sohan 4500

5) Paid to Sohan by cheque 1400

He allowed discount 100

5)Withdraw cash for personal use 200

6) Withdraw cash for office use 500

7) Sold goods to Tilak amount received by cheque 1000

8) Purchased goods from Rakesh 1050

9) Endorced the cheque received from Tilak to Ramesh in full settlement of his account 1050

10) Cash sales 2000

11) cash deposited to bank 1000

12) purchased furniture 1000

13) Bank collected dividend 500

Q. Closing stock appearing in trial balance will be taken to _____________.

1. Profit & loss account only
2. Trading account and balance sheet
3. Trading account only
4. Balance sheet only

Q.

The amount of goods unsold included in purchases should not be shown as expense.

1. True

2. Cannot say

3. False

4. None of these

Q. When closing stock is given in trial balance, then it will effect ___________.

1. Owner's equity only
2. Both Trading account and Balance sheet
3. Balance sheet only
4. Trading account only

Q.

Closing inventory can be calculated as follows:

1. Sales - gross profit - opening inventory - purchases

2. Sales - gross profit – opening inventory + purchases

3. Sales - gross profit + opening inventory - purchases

4. Sales - gross profit – opening inventory + purchases

Q.

What is the order of appearance of accounts in a trial balance?

Q. The following information is provided by a cultural club.
Sports of sports goods: Rs. 20, 000
Purchase of sports goods during the accounting period : Rs. 80, 000
Sports goods sold as scrap : Rs. 500
Closing balance : Rs. 30, 000
The amount to be charged to Income and Expenditure Accounts as sports goods consumed will be.

1. Rs. 69, 500
2. Rs. 70, 000
3. Rs. 70, 500
4. Rs. 80, 000

Q. Closing stock appearing in the trial balance indicates that ________________.

1. Closing stock will appear only in the trading account.
2. Opening stock appears outside the trial balance.
3. Opening stock has been adjusted into the stock figure.
4. purchases have been included in the closing stock.

Q.