Goods returned by customers are recorded in: MCQ with Answer and Explanation
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Question #1
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A company has an operating cycle of 90 days. Its average daily cash outflow is ₹2,00,000. It maintains a minimum cash balance of 10% of its cash outflow during the operating cycle. What is the minimum cash balance it should maintain?
Correct Answer: Option D
Explanation:
Total cash outflow during the operating cycle = 90 days * ₹2,00,000 = ₹1,80,00,000. Minimum cash balance = 10% of ₹1,80,00,000 = ₹18,00,000.
Total cash outflow during the operating cycle = 90 days * ₹2,00,000 = ₹1,80,00,000. Minimum cash balance = 10% of ₹1,80,00,000 = ₹18,00,000.
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Accountancy and Statistics
Accountancy and Book Keeping
Question #2
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Which of the following is a feature of the single entry system?
Correct Answer: Option B
Explanation:
The single entry system is incomplete, unscientific, and lacks uniformity, making it suitable only for small businesses.
The single entry system is incomplete, unscientific, and lacks uniformity, making it suitable only for small businesses.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
Question #3
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Under AS 12, government grants related to depreciable assets are generally:
Correct Answer: Option C
Explanation:
AS 12 permits either reducing the cost of asset or treating grant as deferred income.
AS 12 permits either reducing the cost of asset or treating grant as deferred income.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
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