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Accounting Test No 3

Accounting Test No 3. This test consists of 10 questions designed to test your understanding of the basics of accounting. The links provide you with a choice of answer, along with explanations and solutions. Question 1. Cost of Sales represents? a. Opening Inventory + Purchases

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Accounting Test No 3

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  1. Accounting Test No 3 This test consists of 10 questions designed to test your understanding of the basics of accounting. The links provide you with a choice of answer, along with explanations and solutions.

  2. Question 1. Cost of Sales represents? a. Opening Inventory + Purchases b. Opening Inventories + Purchases – Closing Inventories c. Opening Inventories + Purchases + Closing Inventories

  3. Wrong! Re read 12.1.3. Try again

  4. Wrong! Re read 12.1.3. Try again.

  5. Correct.

  6. Question 2. Which would not appear in the Income Statement? A. Advertising Expenses B. Bad or Doubtful debts C. Deferred Tax

  7. Q2 No? Try again

  8. Q2 No. Try again.

  9. Correct. Advertising and Bad debts are shown in the Income Statement under overheads. Taxation is shown in the Income Statement after EBIT but deferred tax is a Non Current Liability. See 11.1.4. Well done.

  10. Question 3. What does EBIT stand for? Profit Before Interest & Tax Profit Before Investments & Tax

  11. Q3 Correct.

  12. Wrong. Try again

  13. Question 4. Accounts Receivable would normally be found in? A. Current Assets B. Current Liabilities

  14. Q4Wrong. Try Again

  15. Q4Correct.

  16. Question 5. Non Current Assets represent assets that have to be consumed in less than 12 months? A. True B. False

  17. Correct.

  18. Wrong. Non Current Assets are those that are expected to be used for more than 12 months. Re read 10.2.1

  19. Question 6. Switching from LIFO to FIFO basis of inventory will increase profits and inventory values? True False

  20. Correct.

  21. Wrong. Re read 11.2.7 of the manual.

  22. Question 7. Accounts Receivable are also know as? A. Creditors B. Debtors

  23. Wrong. Re read Chapters 10.4.1.

  24. Correct.

  25. Question 8. Which of the following are not included in Shareholders Funds? A. Investments B. Shares C. Retained Earnings

  26. Wrong. Read 14.4.6 .Try again.

  27. Correct.

  28. Wrong. Read 10.8.2 &11.4.1. Try again.

  29. Question 9. Which of the following are not Non Current Liabilities? A. Long Term Bank Loan B. Mortgage C. Tax Payable

  30. Wrong. Read 9.3.1. Try again

  31. Wrong. Read 9.3.1.Try again

  32. Correct.

  33. Question 10. If you commence trading and sell 21 Computers in the first month and buy 30, the following applies? A. You have to show 30 as cost of sales B. You have to Show 21 as cost of sales C. You have remaining inventories of 10

  34. Wrong! Try again

  35. Wrong. Try again

  36. Correct.

  37. Well done.

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