Adjusted Purchases is calculated as: MCQ with Answer and Explanation

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Adjusted Purchases is calculated as:

A. Opening Stock + Net Purchases - Closing Stock

B. Opening Stock + Net Purchases + Direct Expenses

C. Net Purchases - Closing Stock

D. Opening Stock + Net Purchases

Answer: Option A

Solution (By JKSSB Mock Tests)

Adjusted purchases represent the cost of materials actually consumed during the year, removing the stock left unsold.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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Question #1

Under the straight-line method of depreciation, the depreciation amount:

A. Is based on usage

B. Increases every year

C. Decreases every year

D. Remains constant every year

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Correct Answer: Option D

Explanation:
Straight-line method charges equal amount of depreciation each year over the useful life of the asset.

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Question #2

The 'Revenue Recognition' under Ind AS 115 is based on:

A. Invoice issuance

B. Transfer of risks and rewards

C. Receipt of cash

D. Transfer of control of goods or services to the customer

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Correct Answer: Option D

Explanation:
Ind AS 115 uses a five-step model based on transfer of control.

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Question #3

Which of the following is not an objective of budgetary control?

A. Control

B. Co-ordination

C. Profit maximization in the short run

D. Planning

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Correct Answer: Option C

Explanation:
Budgetary control aims at planning, coordination, control, and efficiency, not just short-term profit maximization.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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