Goods distributed as free samples should be credited to which account? MCQ with Answer and Explanation

Question
Goods distributed as free samples should be credited to which account?
A. Sales Account
B. Advertisement Account
C. Free Samples Account
D. Purchases Account
Answer: Option D
Solution (By JKSSB Mock Tests)
Goods distributed as free samples reduce the stock of purchased goods, hence Purchases Account is credited at cost price.
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
In a computerised accounting system, the 'Voucher Entry' screen is used to:
A. Create backup
B. View reports
C. Record transactions
D. Set passwords
Discuss
Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option C

Explanation:
Voucher entry is the primary data input interface.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #2
Which of the following is NOT a type of budget?
A. Zero-Based Budget
B. Flexible Budget
C. Infinite Budget
D. Rolling Budget
Discuss
Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option C

Explanation:
Flexible, Zero-Based, and Rolling are recognized budgeting techniques. There is no such concept as an 'Infinite Budget'.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #3
The 'Gratuity' is a:
A. Defined contribution plan
B. Termination benefit
C. Short-term benefit
D. Defined benefit plan
Discuss
Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option D

Explanation:
Gratuity is a defined benefit plan as the employer's obligation is to provide a specific amount.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Explore All Accountancy and Book Keeping MCQs
Today's Top Topics
Accountancy and Book Keeping 1861 Statistics 1318
Explore Subjects
Computer 5279 Static General Knowledge 6362 English 15164 Current Affairs 575 History GK 3374
Practice Mix
The difference between simple interest and compound interest on a certain sum of money for 2 years at 9% per annum is Rs. 81. Find the sum.
The process by which plants lose water in the form of liquid droplets is:
The 'Vote on Account' is used to:
Software programs that are custom engineered for banking automated teller machines (ATMs) to connect securely to institutional transaction ledger networks are classified as:
Which is the capital of South Africa (legislative)?