The term 'FIFO' stands for: MCQ with Answer and Explanation

The term 'FIFO' stands for:

A. First In, First Over

B. Fixed In, Fixed Out

C. First In, First Out

D. Final In, First Out

Answer: Option C

Solution (By JKExamLibrary)

FIFO is an inventory valuation method where the cost of the earliest goods purchased is assigned to the cost of goods sold first.

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

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In a three-column cash book, the discount columns are:

A. Transferred to suspense account

B. Balanced like cash columns

C. Totalled but not balanced

D. Ignored at month end

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Correct Answer: Option C

Explanation:
Discount Allowed and Discount Received are separate nominal accounts. Their columns are only totalled and posted directly to the respective ledger accounts.

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

Question #2 Report Error

In ratio analysis, 'Stock Turnover Ratio' indicates:

A. Debt repayment capacity

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Correct Answer: Option D

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

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The 'Section 194R' requires TDS on:

A. Salary

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Correct Answer: Option C

Explanation:
TDS at 10% on any benefit or perquisite exceeding ₹20,000 in a year from business/profession.

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

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