1. On 1st July 2020 Al Khareef flour mills bought two wheat grinding machines for RO 18000. The whole amount was Financed by Bank Nizwa for monthly instalments of RO 600. On 30 December 2020 the company sold one of the machine for RO 7200 and paid the Full amount to Bank Nizwa to be adjusted with the loan. How much amount will be shown under current liabilities on 31 December 2020.

a.RO 9000

b.RO 14400

c.RO 7200

d.RO 18000

2. Interest on Loan account, debited by the bank will

a.Decrease in Cash book balance.

b.Decrease in Bank book balance.

c.Increase in Bank book balance.

d.Increase in Cash book balance.

3. Choose when the profit is earned as a result of financial capital maintenance from the options below.

a.Closing Net Assets >; Opening Net Asset

b.Opening Fixed Assets > Opening Liabilities

c.Closing Assets >Closing Liabilities

d.Closing Assets > Current Liabilities

4. DELL LLC had opening stock of 200 kgs value RO 2000. They purchased 300kgs @ RO 11 and later on they purchased 400kgs RO 12. 300kgs were sold. The Value of closing stock as per First In First Out method will be

a.RO 7000

b.RO 6700

c.RO 7200

d.RO 6800