Progress Test-Questions with Correct Answers/ Verified
Business Economics: You took products from the warehouse for private use with a value of €200,
excluding 19% VAT. This transaction was overlooked and has therefore not been recorded yet.To
repair the following journal entry should be made: - ✔✔-Withdrawals €238
-VAT payable €38
-Inventories €200
Business Economics: Your financial manager has provided you with the following overview:
Production (in units) - Variable costs (in Euro)
6,000 - €60,000
7,000 - €70,000
8,000 - €81,250
This is an example of: - ✔✔Progressive costs
Business Economics: Received cash from a customer €1,428 (B-10) Choose the correct journal entry:
- ✔✔100 Cash - €1,428
120 Accounts receivable- €1,428
Business Economics: Paid for private groceries €142.80. The correct journal entry would be: -
✔✔Withdrawals - €142.80
Cash - €142.80
Business Economics: Which statement about the cash book is correct? - ✔✔Making the journal entry
for the credit side of the cash book, cash is credited
Business Economics: Invoice received from the Leeuwarder Courant for advertisement, for total of
€120, excluding 19% VAT.
Choose the correct journal entry: - ✔✔430 advertising costs - €120.00
180 VAT receivable - € 22.80
130 Accounts payable- €142.80
,Business Economics: Which of the following statements about accounting rules is true? - ✔✔A
decrease in equity is debited to a specialised equity account
Business Economics: An important part of bookkeeping is the Eight Column Financial Statement. The
first two columns are called the 'trial balance'.The amounts on the trial balance are derived from: -
✔✔The totals of the debit and credit sides of the ledger accounts
Business Economics: If the actual production volume is larger than the normal production volume,
then: - ✔✔The production volume variance is positive
Business Economics: Your budget for the next period shows:
Expected fixed costs: €500,000
Expected production: 4,500 units
Expected variable costs: €405,000
The normal production is 5,000 units.
The expected volume variance is: - ✔✔€50,000 unfavourable
Business Economics: Your company has the following financial expectations for the next period:
Raw materials: €25,000
Direct labour costs: €30,000
Indirect materials: €20,000
Indirect labour costs:€15,000
The company applies the multiple overhead application rates method. The cost of a product
containing direct materials for €26 and direct labour for €40 is: - ✔✔€106.80
Business Economics: An overhead application rate is used to: - ✔✔Increase the direct costs with an
overhead to cover indirect costs
Business Economics: Your budget for ''Fasties'' for the upcoming period shows the following
information:
Raw materials: €150,000
Direct labour costs: €200,000
Indirect materials: €50,000
, Indirect labour: €50,000
Calculate the cost per product: This product requires €30 direct material and €40 direct labour.
Apply the multiple overhead application rate method. - ✔✔€90
Business Economics: The gross profit on a product is 50% of the selling price.
How much is the selling price as a percentage of the purchase price? - ✔✔200%
Business Economics: The difference between standard and actual quantity, calculated against the
standard price, is called: - ✔✔Efficiency variance
Business Economics: A budget drawn up at the end of the planning period on the basis of the actual
business
activity is known as: - ✔✔A flexed budget
Business Economics: You have bought a new van for your company on account for €10,000. This
transaction will be recorded as: - ✔✔Neither cost nor payment
Business Economics: Depreciation is part of a company's: - ✔✔Costs
Business Economics: ravel agency Far and Away sold 175 travels this year. Normally they sell 160
travels per year. The fixed costs were €120,800 and the variable costs were €50,050. The full cost
per travel (rounded off to full Euro) were: - ✔✔€1,041
Business Economics: What is meant by 'conversion price'? - ✔✔The price per share at which a
convertible bond can be converted into shares
Business Economics: Which statement about bonds and shares is correct? - ✔✔A bond is an example
of temporary capital
Business Economics: A 'rights issue' is: - ✔✔A share issue that entitles shareholders to buy new
shares
Business Economics: The value of a business, calculated as total assets minus total liabilities is called
the: - ✔✔Book value
Business Economics: You took products from the warehouse for private use with a value of €200,
excluding 19% VAT. This transaction was overlooked and has therefore not been recorded yet.To
repair the following journal entry should be made: - ✔✔-Withdrawals €238
-VAT payable €38
-Inventories €200
Business Economics: Your financial manager has provided you with the following overview:
Production (in units) - Variable costs (in Euro)
6,000 - €60,000
7,000 - €70,000
8,000 - €81,250
This is an example of: - ✔✔Progressive costs
Business Economics: Received cash from a customer €1,428 (B-10) Choose the correct journal entry:
- ✔✔100 Cash - €1,428
120 Accounts receivable- €1,428
Business Economics: Paid for private groceries €142.80. The correct journal entry would be: -
✔✔Withdrawals - €142.80
Cash - €142.80
Business Economics: Which statement about the cash book is correct? - ✔✔Making the journal entry
for the credit side of the cash book, cash is credited
Business Economics: Invoice received from the Leeuwarder Courant for advertisement, for total of
€120, excluding 19% VAT.
Choose the correct journal entry: - ✔✔430 advertising costs - €120.00
180 VAT receivable - € 22.80
130 Accounts payable- €142.80
,Business Economics: Which of the following statements about accounting rules is true? - ✔✔A
decrease in equity is debited to a specialised equity account
Business Economics: An important part of bookkeeping is the Eight Column Financial Statement. The
first two columns are called the 'trial balance'.The amounts on the trial balance are derived from: -
✔✔The totals of the debit and credit sides of the ledger accounts
Business Economics: If the actual production volume is larger than the normal production volume,
then: - ✔✔The production volume variance is positive
Business Economics: Your budget for the next period shows:
Expected fixed costs: €500,000
Expected production: 4,500 units
Expected variable costs: €405,000
The normal production is 5,000 units.
The expected volume variance is: - ✔✔€50,000 unfavourable
Business Economics: Your company has the following financial expectations for the next period:
Raw materials: €25,000
Direct labour costs: €30,000
Indirect materials: €20,000
Indirect labour costs:€15,000
The company applies the multiple overhead application rates method. The cost of a product
containing direct materials for €26 and direct labour for €40 is: - ✔✔€106.80
Business Economics: An overhead application rate is used to: - ✔✔Increase the direct costs with an
overhead to cover indirect costs
Business Economics: Your budget for ''Fasties'' for the upcoming period shows the following
information:
Raw materials: €150,000
Direct labour costs: €200,000
Indirect materials: €50,000
, Indirect labour: €50,000
Calculate the cost per product: This product requires €30 direct material and €40 direct labour.
Apply the multiple overhead application rate method. - ✔✔€90
Business Economics: The gross profit on a product is 50% of the selling price.
How much is the selling price as a percentage of the purchase price? - ✔✔200%
Business Economics: The difference between standard and actual quantity, calculated against the
standard price, is called: - ✔✔Efficiency variance
Business Economics: A budget drawn up at the end of the planning period on the basis of the actual
business
activity is known as: - ✔✔A flexed budget
Business Economics: You have bought a new van for your company on account for €10,000. This
transaction will be recorded as: - ✔✔Neither cost nor payment
Business Economics: Depreciation is part of a company's: - ✔✔Costs
Business Economics: ravel agency Far and Away sold 175 travels this year. Normally they sell 160
travels per year. The fixed costs were €120,800 and the variable costs were €50,050. The full cost
per travel (rounded off to full Euro) were: - ✔✔€1,041
Business Economics: What is meant by 'conversion price'? - ✔✔The price per share at which a
convertible bond can be converted into shares
Business Economics: Which statement about bonds and shares is correct? - ✔✔A bond is an example
of temporary capital
Business Economics: A 'rights issue' is: - ✔✔A share issue that entitles shareholders to buy new
shares
Business Economics: The value of a business, calculated as total assets minus total liabilities is called
the: - ✔✔Book value
