A company uses 'Economic Order Quantity' (EOQ) of 500 units. Annual demand is 5,000 units. Number of orders per year will be: MCQ with Answer and Explanation

A company uses 'Economic Order Quantity' (EOQ) of 500 units. Annual demand is 5,000 units. Number of orders per year will be:

A. 100

B. 5

C. 500

D. 10

Answer: Option D

Number of orders = Annual demand / EOQ = 5,000 / 500 = 10.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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Question #1 Report Error

The 'Cost Accounting Standards' are issued by:

A. MCA

B. Institute of Cost Accountants of India (ICMAI)

C. SEBI

D. ICAI

Correct Answer: Option B

Explanation:
ICMAI (formerly ICWAI) issues Cost Accounting Standards.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #2 Report Error

The 'Related Party Disclosures' standard is:

A. AS 19

B. AS 17

C. AS 18

D. AS 21

Correct Answer: Option C

Explanation:
AS 18 requires disclosure of transactions with related parties.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #3 Report Error

On dissolution of a firm, the balance in the partners' capital accounts after all adjustments is transferred to:

A. Profit & Loss account

B. Realisation account

C. Revaluation account

D. Cash/Bank account

Correct Answer: Option D

Explanation:
Finally, the capital account balances are paid off in cash or bank, and accounts are closed.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping