32: What is the basic assumption of LCM method? A. If there is a decrease in the cost price then selling price will also decrease B. C. If there is a decrease in the cost price then purchase price will also decrease None of these D. If there is a decrease in the purchase price then selling price will also decrease Q33: If useful life of an asset is 10 years then what will be the straight line depreciation rate under double declining balance method? A. 0.1% B. 1,000% C. 10% D. 5% Q35: Under what conditions or circumstances a notes receivable is used? A. Loans B. Exchange of current assets C. Exchange of non-current assets D. None of these Q38: On 2nd October, 2015 Oman Communications borrows OMR 16,000 from the bank at 8% for a period of 75 days. The company signs a note with a face value equal to the amount borrowed. Calculate the interest to be paid on the date of maturity assuming there are 360 days in a year. A. OMR 266.67 B. OMR 320 C. OMR 1280 D. None of these Q39: If closing productive capacity is OMR 100,000, contribution is OMR 10,000, Indirect expenses are OMR 5,000 and opening productive capacity is OMR 25,000 then the profit under physical concept of capital maintenance is: A. OMR 65,000 B. OMR 60,000 C. OMR 70,000 D. OMR 75,000 Q40: Which one of the following is true regarding retail inventory method? A. It is a relationship between cost of goods sold and retail price of goods B. Ending inventory Cost of goods sold cost of goods available for use C. None of these D. Result of this method is always correct for preparation of financial statements Q34: Inventory count of a company Alpha is 12,000 units. This inventory includes goods held on consignment of company Beta costing OMR 4,000. Company Alpha did not include the cost of OMR 700 for the goods sold which are still in transit (FOB shipping point). Calculate the cost of inventory: A. OMR 7,300 B. OMR 8,000 C. OMR 16,700 D. OMR 16,000 Q44: Identify the correct statement about Notes receivables from the following: A. Notes receivables is the money owed to a customer by business B. Notes receivables are current asset C. None of these D. Notes receivables exist only when there are cash sales Q301: If cost of a machine is OMR 10,000, estimated salvage value is OMR 1,000, Total units of production are 9,000 and units produced in the month of October are 7,500 then calculate the depreciation expense for the month of October under Units of production method? A. OMR 10,800 B. OMR 7,500 C. OMR 1,000 D. OMR 9,000 Q302; If Cost of an asset is OMR 15,000 and amount of depreciation calculated at the end of the Year is OMR 1,500 then which one of the following is the correct journal entry for recording the depreciation? A. Depreciation expense debit OMR 1,500, Accumulated depreciation credit OMR 1,500 B. Depreciation expense debit OMR 1,500, Asset credit OMR 1,500 C. Depreciation expense debit OMR 1,500, Accumulated depreciation credit OMR 15,000 Depreciation expense debit OMR 1,500, Asset credit OMR 15,000 Q303: ) If useful life of an asset is 5 years and starting book value is OMR 10,000 then calculate the amount of depreciation under double declining balance method? OMR 50,000 OMR 4,000 None of these OMR 2,000 Q404: A new equipment acquired for OMR 10,000. In exchange, the company pays OMR 4,000 cash and trades in old equipment. The old equipment originally cost OMR 11,000 and has accumulated depreciation of OMR 3,000. What will be the amount of gain or loss on the equipment? A. None of these B. No profit no loss C. Loss OMR 2,000 D. Profit OMR 2,000