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81. Net sales equals, sales minus:

A. Return outwords
B. Return inwards
C. cost of goods sold
D. carriage on sales

82. LIFO stands for__________?

A.  Lots in , Few out
B.  Link input, Format Output
C.  Last input, First Output
D.  Last in, First Out

83. Property, Plant and Equipment are conventionally presented in the Balance Sheet at _________?

A. Replacement cost – Accumulated Depreciation
B. Historical cost – Salvage Value
C. Historical cost – Depreciation portion thereof
D. Original cost adjusted for general price-level changes

84. Outstanding salaries is shown as___________?

A. An Asset in the Balance Sheet
B. A Liability
C. By adjusting it in the P & L A/c
D. Both B. and C. above

85. Insurance prepaid is shown as:___________?

A. Current Asset
B. Current Liability
C. Fixed Asset
D. Income

86. Depreciation appearing in the Trial Balance should be?

A. Debited to P&L A/c
B. Shown as liability in Balance Sheet
C. Reduced from related asset in Balance Sheet
D. Both A. and C. above

87. A club paid subscription fees of `1,400. Out of which ` 200 is prepaid. In such case

A. P&L A/C is debited with 1,400
B. P&L A/C is debited with 1,200
C. 200 is shown as current asset
D. Both B. and C. above

88. Bad debts recovered is:

A. Credited to P&L A/c
B. Debited to P&L A/c
C. Reduced from debtors in Balance Sheet
D. Added to debtors in Balance Sheet

89. The adjustment to be made for prepaid expenses is____________?

A. Add prepaid expenses to respective expenses and show it as an asset
B. Deduct prepaid expenses from respective expenses and show it as an asset
C. Add prepaid expenses to respective expenses and show it as a liability
D. Deduct prepaid expenses from respective expenses and show it as a liability

90. On scrutiny of a firm‘s books of accounts, it was observed that the following errors have occurred in the previous years but have not yet been rectified.

i. Depreciation for 2011-2012- 7,000 understated
ii. Accrued expenses as at March 31, 2013 – 10,000 understated
The impact of this on the reported net income for the year ending March 31, 2013 is

A. 7,000 Overstated
B. 10,000 Overstated
C. 17,000 Understated
D. 17,000 Overstated