Accounts - Principles of Accounts Questions
Question 2731:
Why are adjustments in the profit loss account necessary?
- A To cover some expenses of the following year.
- B To ascertain the actual expenses during the year.
- C To show the provisions made during the year.
- D To show the total expenses paid and income received during the year.
Question 2732:
A seller of vegetables and fruits should be encouraged to value his stock at the end of a period using the ____
- A Weighted average method
- B Simple average method
- C FIFO method
- D LIFO method
Question 2733:
Stock valuation is useful because it informs the sales department on the ____
- A Prices of the competing goods
- B Prices that will affect profitability
- C Number of goods to produce
- D Number of goods to sell
Question 2734:
Which of the following stock valuation methods is suitable under inflationary conditions?
- A FIFO
- B LIFO
- C Simple average
- D Weighted average.
Question 2735:
In the absence of a sales day book or sales account, credit sales can be computed from ___
- A Creditor control account
- B Debtors' control account
- C Opening figures of the balance sheet
- D Closing figures of the balance sheet.