The cost of obsolete inventory acquired several years ago, to be considered in a keep vs. disposal decision is an example of :

A: Uncontrollable cost

B: Sunk cost

C: Avoidable cost

D: Opportunity cost

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Sunk cost

If the asset turnover and profit margin of a company are 1.85 and 0.35 respectively, the return on investment is.

A: 0.65

B: 0.35

C: 1.5

D: 5.29

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0.65

Drawings by owner of business are generally recorded on which of the following side of a cash book?

A: Receipts

B: Payments

C: Incomes

D: Expenditures

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Payments

Payment of rent expenses is recorded on which side of cash book?

A: Receipts

B: Payments

C: Income

D: Expense

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Payments

Cash discount is allowed on _______ repayment of debt.

A: Lump sum

B: Prompt

C: Actual

D: None of them

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Prompt

Introduction capital by owner of business is recorded on which side of a cash book?

A: Receipts

B: Payments

C: Incomes

D: Expenditures

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Receipts

A cash book with cash, bank and discount column is commonly referred as________?

A: Cash book

B: Two columns cash book

C: Three columns cash book

D: Petty cash book

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Three columns cash book

The most common imprest system is the ________ system?

A: Petty cash

B: Cash book

C: Cash receipt

D: Discount

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Petty cash

Which English alphabet is similar to the shape of an account?

A: I

B: T

C: H

D: None

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T

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