During the year 2011-2012, the value of closing inventory was overstated by 25,000. Which of the following is true?

✅ A. Raw material consumed

Option A : Raw material consumed Option B : Plant purchased Option C : Long term loan raised from bank Option D : Share Capital Correct Answer : Raw material consumed Read more

✅ B. Profit & Loss A/c

Option A : Debtors A/c Option B : Profit & Loss A/c Option C : Profit & Loss Adjustment A/c Option D : Profit & Loss Appropriation A/c Correct Answer : Profit & Loss A/c Read more

✅ A. Drawings

Option A : Drawings Option B : Bad debts Option C : Accrued expenses Option D : Reserve for discount on Sundry Creditors Read More Details about this Mcq Correct Answer : Drawings Read more

✅ E. above

Option A : Shown as a deduction from contract work-in-progress on asset side Option B : Shown as a liability Option C : Credited to P&L A/c Option D : Either or Correct Answer : Either or above Read more

✅ B. Vehicle

Option A : Stock Option B : Vehicle Option C : Fixed deposit in bank Option D : Both and Correct Answer : Both and above Read more

✅ A. $5000 will be credited

Option A : $5000 will be credited Option B : $5000 will be debited Option C : $10,000 will be credited Option D : $10,000 will be debited Correct Answer : $5000 will be credited Read more

✅ D. Capital receipts

Option A : Liability Option B : Assets Option C : Revenue receipts Option D : Capital receipts Correct Answer : Capital receipts Read more

✅ A. Inventory system

Option A : Inventory system Option B : Survey system Option C : Annuity system Option D : Insurance Correct Answer : Inventory system Read more