Goods distributed as free samples are debited to: MCQ with Answer and Explanation

Question

Share Report Error

Goods distributed as free samples are debited to:

A. Purchases Account

B. Drawings Account

C. Sales Account

D. Advertisement Account

Answer: Option D

Solution (By JKSSB Mock Tests)

Free samples are treated as advertising expense.

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

Request complete Subject PDF

Discuss this Question (0)

No comments yet. Be the first to start the discussion!

Practice More Accountancy and Book Keeping Questions

Question #1

Share Report

The 'Key Audit Matters' (KAM) are required to be reported in the auditor's report for:

A. Only banks

B. Only insurance companies

C. All entities

D. Listed entities (and certain other cases when required by law or voluntarily)

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option D

Explanation:
KAM reporting is mandatory for listed entities as per SA 701.

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

Question #2

Share Report

Which of the following is NOT an objective of Cost Accounting?

A. Cost control and reduction

B. Determining selling price

C. Ascertaining profit for tax authorities

D. Assisting management in decision making

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option C

Explanation:
Tax authorities require financial accounting statements (P&L, Balance Sheet). Cost accounting is an internal management tool.

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

Question #3

Share Report

Long Term Capital Gains (LTCG) on the sale of listed equity shares over Rs 1 Lakh is currently taxable at:

A. 30% with indexation

B. 15% with indexation

C. 10% without indexation

D. 20% without indexation

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option C

Explanation:
Under Section 112A, LTCG on listed equity shares exceeding Rs 1 lakh in a year is taxed at 10% without the benefit of indexation.

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

Explore All Accountancy and Book Keeping MCQs