Partly manufactured goods are treated in the balance sheet of a manufacturing company as
Current assets
Fixed assets
Current liabilities
Long term liabilities
Correct answer is A
Inventory means those current assets, which have been or will be converted into the final products of a company for sale in the near future. In other words, inventory represents finished goods or goods in different stages of production that a company keeps at its premises or at third-party locations with ownership interest retained until goods are sold. The three most important types of inventory are the raw materials, the work in progress (semi finished goods / partly manufactured goods) and the finished goods.
I and II only
I and III only
I, II and III only
I,II and IV only
Correct answer is B
Prime costs consist of direct materials and direct labor. Direct materials include all tangible components of a product. For example, direct materials include raw materials, supplies, and any other component that becomes part of the finished product.
Le 80,000
Le 96,000
Le 100,000
Le 104,000
Correct answer is C
No explanation has been provided for this answer.
Le 80,000
Le 96,000
Le 100,000
Le 104,000
Correct answer is B
80,000 + 20,000 = 100,000
100,000 - 4000 = 96,000
Which of the following would result from an increase in the provision for doubtful debts?
A Decrease in gross profit
A decrease in net profit
An increase in gross profit
An increase in net profit
Correct answer is B
The provision for doubtful debts is the estimated amount of bad debt that will arise from accounts receivable that have been issued but not yet collected. Provision for bad debts can only appear in the income statement if there is an increase in provision. Thus, the net impact of the increase in provision for doubtful debts (expenses) is the decrease in the net profit