Correct Answer:
B. Opening inventory + purchases - closing inventory
This gives the cost of inventory sold during the period.
November 13, 2026 · Accounting and Finance MCQs, Financial Accounting MCQs
Cost of goods sold is calculated as:
Related MCQs
The key difference between fraud and error is that fraud is:
A.
An intentional act involving deception
B.
Always immaterial
C.
Always committed by outsiders
D.
Detected only by internal auditors
Correct answer is:
A. An intentional act involving deception
Do you agree with this answer?
Contribution margin is Rs. 120,000 and operating income is Rs. 30,000. The degree of operating leverage is:
A.
0.25
B.
3
C.
90,000
D.
4
Correct answer is:
D. 4
Do you agree with this answer?
Financial independence of a Supreme Audit Institution means that:
A.
It has adequate resources and control over its budget to perform its mandate
B.
It is financed by the audited entities
C.
It has no budget
D.
It depends on ministers for funds each month
Correct answer is:
A. It has adequate resources and control over its budget to perform its mandate
Do you agree with this answer?
An expansionary fiscal policy involves:
A.
Reducing government spending and raising taxes
B.
Increasing government spending or cutting taxes
C.
Raising interest rates
D.
Selling government bonds only
Correct answer is:
B. Increasing government spending or cutting taxes
Do you agree with this answer?
In capital budgeting, depreciation is relevant only because of its effect on:
A.
Cash outflow at the start
B.
Taxes (the depreciation tax shield)
C.
Working capital
D.
The discount rate
Correct answer is:
B. Taxes (the depreciation tax shield)
Do you agree with this answer?
Audit working papers generally belong to:
A.
The client
B.
The auditor
C.
The shareholders
D.
The regulator in every case
Correct answer is:
B. The auditor
Do you agree with this answer?
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