1) If the rate of gross profit is 25% on
cost it will be equal to
a) 20% on sales
b) 20% on cost
c) 1/3 on sales
d) 1/5 on cost
2) Fire insurance provides cover for
a) Tangible assets
b) Intangible assets
c) Fictitious assets
d) None of these
3) The average clause in a loss of
profit protects the
a) Insurer
b) Insured
c) Workers
d) None of these
4) Fire insurance policy is taken up to
indemnify
a) Capital losses to tangible property
b) Revenue losses to tangible property
c) Capital losses to tangible property
d) None of these
5) Claim to be lodged with insurance
company is for
a) Closing stock +salvaged good
b) Closing stock on the date of fire –
salvaged goods
c) Policy amount – salvaged goods
d) None of these
6) Goods recovered in good condition at
the time of fire accident is called
a) Salvaged goods
b) Saved goods
c) Damaged goods
d) None of these
7) If del- credere commission is allowed
for bad debt, consignee will debt the bad debt amount to
a) Commission earned A/C
b) Consignor A/C
c) Debtors A/C
d) General profit & loss A/C
8) If del- credere commission is not
allowed for bad debt, consignee will debt the bad debt amount to
a) Commission earned A/C
b) Consignor A/C
c) Debtors A/C
d) General profit & loss A/C
9) If del- credere commission is allowed
by consignee to consignee the bad debt (in the books of consignor)
a) Will not be recorded in consignor’s books
b) Will be debited in consignment A/C
c) Will be charged to general P/L A/C
d) Will be debited to the consignee’s A/C
10) Under stock and debtors method,
branch stock account helps to
a) ascertain net profit/loss of branch
b) ascertain gross profit/loss of branch
c) ascertain closing stock at the branch
d) ascertain cost of goods sent to the branch
11) which of the following item is not
credited to consignment account ?
a) cash sales made by consignee
b) credit sales made by consignee
c) consignment stock
d) stock reserve on closing stock
12) which of the following expenses of
consignee will be considered as non-selling expenses?
a) Advertisement
b) Insurance
c) Selling expenses
d) None of these
13) With reference to consignment,
loading is the difference between
a) Selling price and cost price
b) Selling price and invoice price
c) Invoice price and cost price
d) Invoice price and net realizable value
14) Out of the given option which cannot
be treated as part of cost of purchase for valuing stock on hand.
a) Packaging
b) Octroi
c) Delivery charges
d) Freight
15) On receipt of advance from consignee
in books of consignor which account should be credited.
a) Consignee
b) Cash / bank
c) Bills receivable
d) Consignment
16) As per average clause insurance
company pays compensation
a) Proportionately
b) More than the loss
c) Less than the loss
17) Which valuing closing stock
consignment, the ______expenses incurred by consignor are added to the cost of
stock.
a) Full
b) half
c) Proportionate
d) Nil
18) In consignment the goods are
despatched on the basis that the goods will be sold on behalf of, at the
expense and at the risk of
a) Consignor
b) Consignee
c) Transporter
d) None of these
19) To lodge claim for the loss of stock
by fire, the value of _______ on the date of fire has to be estimated.
a) Opening stock in trade
b) Closing stock in trade
c) Sales
d) Claim
20) With reference to consignment, which
of the following is correct ?
a) Sales account is sent by the consignor
b) Sales account is sent by the consignee
c) an account sales is sent by the consignor
d) an account sales is sent by the consignee
21) In consignment accounting, to consign means
______
a) to receive
b) to purchase
c) to send
d) to transfer
22) In consignment accounting consignor is
_______
a) principal
b) agent
c) debtor of the consignee
d) none of them
23) In consignment accounting, consignment is
_______
a) real A/C
b) personal A/C
c) nominal A/C
d) none them
24) In consignment accounting, consignee account
is _______
a) real A/C
b) personal A/C
c) nominal A/C
d) none them
25) In consignment accounting, if discount is
treated as “consignment expenses” if is debited to _______
a) Consignment A/C
b) Profit and loss A/C
c) Consignee A/C
d) Consignor A/C
