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Question 1:

In consignment accounting, the valuation of closing stock is important for:

Setting the selling price of the goods Determining the consignee's commission Estimating the market value of the goods Calculating the consignor's profit or loss

Question 2:

After assessing its accounts, a company decides to increase its provision for doubtful debts from 5% to 6% of its debtors, which are ?400,000. What is the revised provision amount?

22000 20000 26000 24000

Question 3:

The main difference between a joint venture and a consignment is:

A joint venture involves the sale of goods, while a consignment involves the provision of services In a joint venture, there is no sharing of profits and losses, while in a consignment, there is A joint venture is a long-term arrangement, while a consignment is short-term In a joint venture, co-venturers share profits and losses, while in a consignment, the consignor and consignee do not

Question 4:

Account sales in consignment accounting is prepared by:

The carrier The consignee The buyer The consignor

Question 5:

A consignor sends goods to a consignee, and the goods are invoiced at a 20% markup on cost. If the invoice value is ?240,000, what is the cost of the goods?

180000 220000 160000 200000

Question 6:

Abnormal loss in consignment is:

The loss within the normal loss Not recorded in the accounts The loss beyond the normal loss Borne by the carrier

Question 7:

After assessing its accounts, a company decides to increase its provision for doubtful debts from 5% to 6% of its debtors, which are ?400,000. What is the revised provision amount?

24000 20000 26000 22000

Question 8:

A company has a provision for bad debts at 5% of its debtors, which amount to ?200,000. What is the amount of the provision for bad debts?

15000 5000 20000 10000

Question 9:

In joint venture accounting, when one co-venturer keeps the records, they:

Maintain separate accounts for each co-venturer Record all transactions in their books on behalf of all co-venturers Do not record any transactions related to the joint venture Record only their share of transactions

Question 10:

If a consignee sells goods on behalf of the consignor for ?300,000 and is entitled to a commission of 5%, what is the amount of commission?

25000 20000 15000 10000

Quiz: Financial Accounting