1. Goods may be invoiced to branch at (a) cost. (b) selling price. (c) wholesale

Question

1. Goods may be invoiced to branch at
(a) cost.

(b) selling price.
(c) wholesale price.
(d)all of the above.
2. Under debtors method, opening balance of debtors is
(a) debited to branch account.
(b) credited to branch account.
(c) debited to H.O account.
(d) credited to H.O account.
3. Cost of goods returned by branch will have the following effect
(a).goods sent to branch account will be debited.
(b). goods sent to branch account will be debited.
(c) Branch stock account will be credited.
(d) (a) and (c).
4. Assets and liabilities of a non- integral foreign operation should be converted at
(a) closing rate.
(b) average rate.
(c) opening rate.
(d) none of the above.
5. All of the following are examples of monetary assets except:
(a) Cash.
(b) Inventory.
(c) Receivables.
(d) Payables.
6. If asset is carried at cost, cost and depreciation of tangible fixed assets is translated at
(a) average rate.
(b) closing rate.
(c) opening rate.
(d) exchange rate at the date of purchase of asset.
7. Incomes and expenses of a NFO is translated at
(a) average rate that approximates the actual exchange rates.
(b) opening rate.
(c) exchange rate at the date of transaction.
(d) either (a)or (c)
8. AS 11 classifies foreign branches are classified as
(a)Autonomous branches and non-autonomous branches
(b)Uncontrolled and fully controlled branches.
(c) Statutory and non-statutory branches.
(d) Integral and non- integral foreign operation

Explanation / Answer

1. d. all of the above.

2. a. debited to branch account.

3. d. branch stock account will be credited.

4. a. closing rate.

5. b. inventory.

6. d. exchange rate at the date of purchase of asset.

7. d. either (a) or (c )

8. d. integral and non-integral foreign operation.

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