Net sales equals, sales minus:

Related Mcqs:

1. Riaz holds an average inventory of 36,000(CP) with an inventory turnover of 5 times. If the firm makes a gross profit of 25% on sales, find the total sales of the company.

   A. 2,40,000
   B. 2,10,000
   C. 2,00,000
   D. 1,80,000

2. Any gain on the sale of non-current assets should be _________ from the net profit and the loss must be _________to the net profit in determining fund from operation?

   A. Added, Reduced
   B. Added, Added
   C. Deducted, Added
   D. Deducted, Deducted

3. Sales return is also known as____________?

   A. Return received
   B. Return Payed
   C. Return inward
   D. Return outward

4. Goods sent on approval basis’ have been recorded as ‘Credit sales’. This is an example of____________?

   A. Error of principle
   B. Error of commission
   C. Error of omission
   D. Error of duplication

5. Sales and purchase journal don’t record__________?

   A. Credit sales
   B. Credit purchases
   C. Credit sales and purchases
   D. Cash sales and purchases

6. If goods worth 1,750 returned to a supplier is wrongly entered in sales return book as 1,570, then

   A. Net Profit will decrease by 3,140
   B. Gross Profit will increase by 3,320
   C. Gross Profit will decrease by 3,500
   D. Gross Profit will decrease by 3,320

7. The periodic total of sales day book is posted to___________?

   A. Sales A/c
   B. Cash sales A/c
   C. Sales return A/c
   D. Credit sales A/c

8. During the accounting period, sales revenue is Rs. 25,000 and accounts receivable increases by Rs. 8,000. What will be the amount of cash received from customers for the period?

   A. Rs. 33,000
   B. Rs. 25,000
   C. Rs. 17,000
   D. Rs. 8,000

9. When production is equal to sales, which of the following is TRUE?

   A. No change occurs to inventories for either use absorption costing or variable costing methods
   B. The use of absorption costing produces a higher net income than the use of variable costing
   C. The use of absorption costing produces a lower net income than the use of variable costing
   D. The use of absorption costing causes inventory value to increase more than they would though the use of variable costing

10. Budgeted sales for the next year is 5,00,000 units. Desired ending finished goods inventory is 1,50,000 units and equivalent units in ending W-I-P inventory is 60,000 units. The opening finished goods inventory for the next year is 80,000 units, with 50,000 equivalent units in beginning W-I-P inventory How many equivalent units should be produced?

    A. 5,80,000
    B. 5,50,000
    C. 5,00,000
    D. 5,75,000