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Question 1:

The depletion method allocates the cost of a natural resource based on:

The market value of the resource The original cost of the resource The time it is used The number of units extracted

Question 2:

A reserve is considered to be:

A mandatory deduction required by law A charge against profits for a known liability An amount set aside to cover future expenses An appropriation of profits for a specific purpose

Question 3:

The depletion method of depreciation is most appropriate for assets that:

Are consumed over time Are subject to technological advancements Are used evenly over their useful life Have a fixed useful life

Question 4:

In a joint venture, the final accounts are prepared:

Whenever a co-venturer requests Monthly After the completion of the venture At the end of each financial year

Question 5:

Del-credere commission is considered as an additional commission because it:

Compensates for the consignee's selling efforts Covers the cost of advertising Provides insurance against bad debts Is a percentage of the total sales value

Question 6:

The annuity method takes into account:

The inflation rate The market value of the asset The time value of money The salvage value of the asset

Question 7:

The stock and debtors system in branch accounting involves:

Recording all branch transactions in detail Maintaining detailed records of stock and debtors only Consolidating branch stock records at the head office Using a single set of books for the head office and branches

Question 8:

Abnormal loss in consignment is:

The loss within the normal loss Not recorded in the accounts The loss beyond the normal loss Borne by the carrier

Question 9:

In a joint venture, the co-venturer's share of profit or loss is:

Determined by the managing co-venturer Based on the predetermined ratio agreed upon The same for all co-venturers regardless of their contribution Equal to their share of investment

Question 10:

Two co-venturers A and B enter into a joint venture, contributing ?100,000 and ?200,000 respectively. If the venture makes a profit of ?90,000, what is A's share of the profit?

40000 60000 45000 30000

Quiz: Financial Accounting