Q10: Total sales of the company were OMR 84,000 and out of which OMR 16,000 was cash sales. The estimated bad debts expense based on past experience is 5%. Calculate the value of bad debts expense under percentage of sales method. A. OMR 3,400 B. OMR 800 C. OMR 4,200 D. OMR 16,000 Q11: If purchase is debit and accounts payable is credit, the correct transaction for this entry is: A. Paid money to accounts payables B. Goods purchased on credit C. Goods returned from customer D. Purchases made from customer and paid by cheque Q12: Which of the following statements is true about perpetual inventory system? A. There is no control of management B. None of these C. Stock count is done to determine cost of goods sold D. Stock count is done to confirm if units held are as per records Q13: If capital market funds are OMR 100, marketable securities for 6 months are OMR 35, notes receivables for 18 months are OMR 50, guaranteed investment certificates are OMR 75 and treasury bills are OMR 30 then what will be the amount for cash equivalents? A. OMR 140 B. OMR 160 C. OMR 290 D. OMR 190 Q14: The company issued a note receivable on 12-7-2020 for OMR 1,000 with an interest rate of 10%. The maturity date of the note is 30-9-2020. The note was honored on the maturity date. Calculate the interest amount received by the company on the maturity date assuming 360 days in a year. A. OMR 22.22 B. OMR 21.67 C. OMR 21.94 D. OMR 22.50 Q15: Which one the following statements is true about periodic inventory system? A. None of these B. Ending inventory and cost of goods sold is calculated on the basis of physical count C. Income statement and balance can accurately be prepared at any point of time D. It is not appropriate for the small businesses Q20: Which statement is in-correct about depreciation? A. All of these are true B. Under straight line balance method, the depreciation is same in all the years C. When calculating depreciation, salvage value is added to cost of asset D. Depreciation is the reduction in the value of fixed asset Q21: Which one of the following is not an example of cost of land assets? A. Title fee B. Demolishing old structure C. Legal fee D. Selling cost ||