Accounting For Consignment: Multiple Choice Questions (MCQS) Quiz

2/22/2021 Accounting for consignment - Multiple choice questions (MCQs) Quiz | Accounting for Management
Menu
Find
HOME EXPLANATIONS EXERCISES PROBLEMS QUIZZES CALCULATORS ONLINE ESSAY HELP
ADVERTISEMENT
This Is What Liza She Had No Clue Why Most Funny Notes The Most Popular
Minnelli's Derelict The Crowd Started Found In Public Weather Reporters
Beverly Hills Mansion Cheering Bathrooms on Television
Looks Like Inside
Accounting for consignment

 Multiple choice questions (MCQs) Quiz
 Posted in: Accounting for consignment (quizzes)
Facebook Twitter Email Pinterest More 33
Results
25 of 30 questions answered correctly
Your time: 01:39:54
You have reached 25 of 30 points, (83.33%)
Average
0%
score
Your score 83.33%
Restart quiz View questions
The relationship between consignor and consignee is that of:
employer and employee
business partners
owner and servant
principal and agent
CORRECT
Awesome! Your answer is correct.
Consignee becomes consignor’s debtor when the goods are:
shipped by the consignor
https://www.accountingformanagement.org/afc-mcqs-quiz/ 1/11
received by consignee
sold by consignee
returned by consignee
CORRECT
If no agreement regarding the responsibility of loss exists between consignor and consignee, the loss of goods resulting from accident, fire or theft etc. would be
born by the:
both consignor and consignee in the ratio of 1 : 1
consignor only
consignee only
carrier of goods only
CORRECT
According to traditional classification of accounts, the type of consignment account is:
nominal
real
personal
valuation
CORRECT
Del credere commission is calculated on:
cash sales only
credit sales only
total of both cash and credit sales
cost price of goods sold
CORRECT
Del credere commission is allowed to cover:
bad debt loss
normal loss
abnormal loss
both normal and abnormal loss
CORRECT
According to traditional classification, the nature of consignee account is:
real
valuation
nominal
personal
CORRECT
Which of the following items may be shown by an account sales:
Type and quantity of goods sold
Per unit sales price
Consignee's commission and expenses
All of the above items may be shown by an account sales
CORRECT
Proforma invoice is a document which is prepared by:
the consignor and is sent to the consignee
the consignee and is sent to the consignor
both consignor and consignee and is sent to each other
the carrier and is sent to both consignor and consignee
CORRECT
Which of the following is a correct journal entry to record the loss incurred by a consignment:
Profit and loss on consignment Dr. & Consignment Cr.
Consignment Dr. & Profit and loss on consignment Cr.
Profit and loss on consignment Dr. & Consignee Cr.
Consignee Dr. & Profit and loss on consignment Cr.
CORRECT
No entry is made for the loss, the amount of loss is absorbed by good units. This statement belongs to:
abnormal loss
bad debts loss
normal loss
all of the above
INCORRECT
Your answer is incorrect. The correct answer is “normal loss” (option 3).
Overriding commission is granted to consignee for
achieving a specific sales volume or promoting an item in a specific area
selling goods in the ordinary course of business
covering bad debt losses
selling all the goods for cash only
CORRECT
A consignee is entitled to a 10% ordinary and a 5% del credere commission. If cash sales are $50,000 and credit sales are $25,000, the total commission would
be:
8,750
6,250
$7,500
$11,250
CORRECT
Computations:
= [$50,000 + $25,000) × 0.1] + [($50,000 + $25,000) × 0.05]

= $7,500 + $3,750
= $11,250
(Both ordinary and del credere commission are calculated on total sales)
The profit generated or loss incurred by a consignment is shown by the:
goods sent on consignment account
consignee account
consignment account
stock reserve account
CORRECT
If the consignor is a manufacturer, which of the following journal entries should he make to close the goods sent on consignment account?
Goods sent on consignment Dr. and Trading account Cr.
Trading account Dr. and Goods sent on consignment Cr.
Goods sent on consignment Dr. and Purchases account Cr.
Purchases account Dr. and Goods sent on consignment Cr.
CORRECT
Goods costing $50,000 are consigned at a proforma invoice of cost plus 20%. The consignment account will be debited by:
$50,000
$60,000
$10,000
$40,000
CORRECT
Which one of the following is not credited to consignment account?
Closing stock
Abnormal loss
Consignee's commission
stock in transit
INCORRECT
Your answer is incorrect. The correct answer is “Consignee’s commission” (option 3).
Which one of the following is not a non-recurring expense in consignment?
Godown rent paid by consignee
Loading charges paid by consignor
Freight and insurance paid by consignor
Carriage to godown paid by consignee
CORRECT
The consignor does not keep a record of consignment related debtors when:
a del credere commission is not given to consignee
a del credere commission is given to consignee
an overriding commission is given to consignee
an ordinary commission is given to consignee
CORRECT
A loss which occurs due to natural causes and which is not avoidable is known as:
abnormal loss
controllable loss
additional loss
normal loss
CORRECT
Which of the following expenses should not be taken into account while calculating the value of stock on consignment?
Freight paid by consignor
Insurance paid by consignor
Carriage to godown paid by consignee
Selling and marketing expenses paid by consignee
CORRECT
In consignment, the ownership to goods:
rests with the consignor
is transferred to consignee
is transferred to carrier
is transferred to insurance company
CORRECT
Mr. Arfan of Mumbai consigned goods to Mr. Nabeel of Nagpur. The following selected data is provided to you:
Goods consigned: 2,000 units @ Rs 100 per unit

Goods sold: 1,900 units @ Rs 1,200 per unit
Unsold stock with consignee: 100 units
Non-recurring expenses paid by consignor: Rs 2,400
Non-recurring expenses paid by consignee: Rs 1,600
Recurring expenses paid by consignee: Rs 1,000
Based on the data given above, the value of stock on consignment is:
Rs 1,000
Rs 12,250
Rs 10,050
Rs 10,200
INCORRECT
Your answer is incorrect. The correct answer is “Rs 10,200” (option 4).
Computations:
Cost of 100 units in stock + Proportionate non-recurring expenses

= [(100 units × Rs 100) + (Rs 4,000/2,000 units) × 100 units]
= Rs 10,000 + Rs 200
= Rs 10,200
A loss that is highly controllable or avoidable is referred to as:
insured loss
intentional loss
normal loss
abnormal loss
CORRECT
If del credere commission is given, the consignee will debit the amount of bad debts to:
consignor account
commission received account
trading account
debtors account
CORRECT
Which of the following accounts will be credited by the consignee when he sells the goods?
Sales account
Consignor account
Inventory account
Commission received account
CORRECT
Which of the following is a correct journal entry in the books of consignee when he pays expenses in respect of consignment:
Consignor account Dr. & Cash account Cr.
Cash account Dr. & Consignor account Cr.
Consignment account Dr. & Cash account Cr.
Cash account Dr. & Consignment account Cr.
CORRECT
Which of the following is a correct statement about stock on consignment?
It is shown on the credit side of consignment account
It is shown as an asset in the balance sheet in consignor's books
It is not recorded in consignee's books
All of the above statements are correct
INCORRECT
Your answer is incorrect. The correct answer is “All of the above statements are correct” (option 4).
The nature of goods sent on consignment account is:
real
nominal
personal
valuation
INCORRECT
Your answer is incorrect. The correct answer is “nominal” (option 2).
Which one of the following is a correct statement about stock reserve?
It is shown on the debit side of the consignment account
It is shown as deduction from stock on consignment in the balance sheet
It is a removal of excess price (or loading) from stock on consignment
All of the above statements are correct
CORRECT
By Rashid Javed (M.Com, ACMA)
 Back to: Accounting for consignment (quizzes)
SHOW YOUR LOVE FOR US BY SHARING OUR CONTENTS.
Facebook Twitter Email Pinterest More 33
ADVERTISEMENT
4 COMMENTS ON
Accounting for consignment
 Multiple choice questions (MCQs) Quiz
AKASH HONOLE
Nice
REPLY
AKASH HONOLE
Nice questions
REPLY
SAMIKSHA PATIL
Good
REPLY
SAMIKSHA PATIL
I like it this ques competition
REPLY
Leave a comment
Your name
Your email
Submit
ADVERTISEMENT
ADVERTISEMENT
PLEASE LIKE OUR FACEBOOK PAGE
Accounting For Management

9,278 likes
Like Page Send Message
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
2021 Accounting So ware

Switch to Blumble for all your searches. Accounting So ware
Blumble Open
Go to top
Contact us Privacy policy Helpful sites Assignment help
Copyright  2012 - 2020. Accounting For Management

Accounting For Consignment: Multiple Choice Questions (MCQS) Quiz

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Accounting For Consignment: Multiple Choice Questions (MCQS) Quiz

Uploaded by

Copyright:

Available Formats

2/22/2021 Accounting for consignment - Multiple choice questions (MCQs) Quiz | Accounting for Management

HOME EXPLANATIONS EXERCISES PROBLEMS QUIZZES CALCULATORS ONLINE ESSAY HELP

Accounting for consignment

 Posted in: Accounting for consignment (quizzes)

Facebook Twitter Email Pinterest More 33

25 of 30 questions answered correctly

Your time: 01:39:54

You have reached 25 of 30 points, (83.33%)

Your score 83.33%

Restart quiz View questions

The relationship between consignor and consignee is that of:

employer and employee

owner and servant

principal and agent

Awesome! Your answer is correct.

Consignee becomes consignor’s debtor when the goods are:

shipped by the consignor

Awesome! Your answer is correct.

both consignor and consignee in the ratio of 1 : 1

carrier of goods only

Awesome! Your answer is correct.

According to traditional classification of accounts, the type of consignment account is:

Awesome! Your answer is correct.

Del credere commission is calculated on:

cash sales only

credit sales only

total of both cash and credit sales

cost price of goods sold

Awesome! Your answer is correct.

Del credere commission is allowed to cover:

bad debt loss

both normal and abnormal loss

Awesome! Your answer is correct.

According to traditional classification, the nature of consignee account is:

Awesome! Your answer is correct.

Which of the following items may be shown by an account sales:

Type and quantity of goods sold

Per unit sales price

Consignee's commission and expenses

All of the above items may be shown by an account sales

Awesome! Your answer is correct.

Proforma invoice is a document which is prepared by:

the consignor and is sent to the consignee

the consignee and is sent to the consignor

both consignor and consignee and is sent to each other

the carrier and is sent to both consignor and consignee

Awesome! Your answer is correct.

Profit and loss on consignment Dr. & Consignment Cr.

Consignment Dr. & Profit and loss on consignment Cr.

Profit and loss on consignment Dr. & Consignee Cr.

Consignee Dr. & Profit and loss on consignment Cr.

Awesome! Your answer is correct.

bad debts loss

all of the above

Overriding commission is granted to consignee for

achieving a specific sales volume or promoting an item in a specific area

selling goods in the ordinary course of business

covering bad debt losses

selling all the goods for cash only

Awesome! Your answer is correct.

Awesome! Your answer is correct.

= [$50,000 + $25,000) × 0.1] + [($50,000 + $25,000) × 0.05]

The profit generated or loss incurred by a consignment is shown by the: