Multiple choice questions, Tick the correct answer. (5) i. Stock is? ? The quant
ID: 2401943 • Letter: M
Question
Multiple choice questions, Tick the correct answer. (5)
i. Stock is?
? The quantity of goods at the end of the year
? The total value of all the goods purchased during the year
? Items purchased to sell at a profit
? The value of goods left over at the end of the year
? Fixed assets acquired during the year
ii. Which of the following is not an asset?
? Creditors
? Fixed assets
? Cash
? Debtors
? Petty cash
iii. Capital is?
? The total amount of cash in the business
? The amount the bank has invested in the business
? Total of the fixed assets and current assets
? The total amount the owner has invested in the business
? The total amount owed by the business to the ban
Multiple choice questions, Tick the correct answer. (5)
i. Stock is?
? The quantity of goods at the end of the year
? The total value of all the goods purchased during the year
? Items purchased to sell at a profit
? The value of goods left over at the end of the year
? Fixed assets acquired during the year
ii. Which of the following is not an asset?
? Creditors
? Fixed assets
? Cash
? Debtors
? Petty cash
iii. Capital is?
? The total amount of cash in the business
? The amount the bank has invested in the business
? Total of the fixed assets and current assets
? The total amount the owner has invested in the business
? The total amount owed by the business to the ban
iv. Interest paid to a bank is an example of?
? Income
? Liabilities
? Expenses
? Drawings
? Fixed assets
v. Debtors are?
? The owner
? The bank
? Suppliers
? Employees
? Customers
Explanation / Answer
(i) Option C is the answer
Stock can genrally be termed as inventory held by business for sale at a profit. So option C is the answer
(ii) Option A is the answer
Creditors can be termed as people to whom a business owes something monetary. They are liabilities and not assets
(iii) Option D is the answer
The owner starts his business by investing the money available with him and that investment by him in the business is termed as capital.
(iv) Option C is the answer
Interest expenses is the cost incurred on the loan borrowed by an entity. So, the interest expense fall into expenses category
(iv) Option E is the answer
Debtors can be termed as people who owe something to the business. Generally customers are Debtors when they purchase something on credit.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.