MBA (Semester 1) Objective Questions 100. Arial Balance is prepared to (@) Check the arithmetical accuracy of the books of accounts (b) Know the profitat of the firm (©) Know the financial position of the business (@) Understand the return on investments made . The excess of total tumover over the cost of goods sold plus direct expenses is termed as (@) Gross loss (b) Gross profit (©) Net profit (6) Operating profit Fixed Assets of a business does not include @) Fittings (b) Loose-Tools (©) Motor Vehicles (6) Patents Earning of ‘revenue’ means the substantial increase in asset resulting from (@) Selling of trading goods, merchandise and providing of services (©) Gains from sale or transfer of assets, other than goods (© Incomes from dividends, rents, interests, salary and wages etc. (@) All of the above 1. Rearrange the following current assets in the order of ‘Liquidity’. (i) Book Debts, (i) Cash in Hand, (ji) Income Receivable, (iv) Stock, (v) Bills Receivable, (vi) Expenses Carried Forward. @ GW... Gv), Gil, (vi) (0) Cid, @. Gv), Gi), (Wi), © Gi, Wi, Gid, H.W), (iv) (2) @, Gil), ), Gv), Gd, (wi) . Total Turnover % 1,10,000, cost of Goods Sold % 88,000. The percentage of gross profit to sales will be @ 25% (b) 28% © 20% (6) 30% . Product Costs are but Period Costs are (@) Fixed-variable (b) Variable-fixed (©, Semi-variable-semi-fixed (@) Rigid-differential . The expenses which are incurred for and may easily and conveniently be identified with a particular cost unit or cost centre are’ (@) Indirect expenses (b) Chargeable expenses (©) Overhead expenses (a) On cost expenses