Which of the following bases of accounting does not make allowance for depreciation?
Cash basis
Accrual basis
Matching basis
Commitment basis
Correct answer is C
No explanation has been provided for this answer.
Which of the following formulae is used to calculate stock turnover rate?
\(\frac{sales}{\text{average stock}}\)
\(\frac{\text{cost of sales}}{\text{average stock}}\)
\(\frac{\text{cost of sales}}{\text{opening stock}}\)
\(\frac{\text{cost of production}}{\text{average stock}}\)
Correct answer is B
The inventory turnover ratio formula is the cost of goods sold divided by the average inventory for the same period.
In the absence of partnership agreement, profits and losses are shared
In the ratio of capitals
Equally
In the ratio of drawings
According to services rendered
Correct answer is B
No explanation has been provided for this answer.
Which of the following is not an accounting convention?
Maternity
Consistency
Business entity
Periodicity
Correct answer is C
No explanation has been provided for this answer.
Realization concept
Entity concept
Going cornvern concept
Dual aspect concept
Correct answer is D
No explanation has been provided for this answer.