The 'Economic Order Quantity' (EOQ) model is used to determine: MCQ with Answer and Explanation

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The 'Economic Order Quantity' (EOQ) model is used to determine:

A. Optimum production level

B. Optimum order size that minimizes total inventory costs

C. Selling price

D. Break-even point

Answer: Option B

Solution (By JKSSB Mock Tests)

EOQ balances ordering costs and carrying costs to minimize total inventory cost.

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

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Question #1

When bad debts previously written off are recovered, which account is credited?

A. Bad Debts Account

B. Bad Debts Recovered Account

C. Suspense Account

D. Debtor's Personal Account

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Correct Answer: Option B

Explanation:
Bad debts recovered represent a gain for the business and are credited to a separate nominal account called 'Bad Debts Recovered Account'.

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

Question #2

The 'Equalisation Levy' in India is a tax on:

A. All goods

B. Personal income

C. Income from agriculture

D. Digital transactions by non-resident companies

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Correct Answer: Option D

Explanation:
Equalisation levy, often called 'Google tax', is on specified digital services provided by non-residents.

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

Question #3

A 'Narration' in a journal entry is:

A. The amount

B. The date of transaction

C. A brief description of the transaction

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Correct Answer: Option C

Explanation:
Narration provides a short explanation of the transaction recorded.

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

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