OBJECTIVE QUESTIONS ACCOUNTING

OBJECTIVE QUESTIONS
• True/False.
1. Consignment signifies forwarded of goods from one place to another.
2. Manufacturers acts as a principal in consignment.
3. Consignee acts as an agent in consignment.
4. The relationship between consignor and consignee is that of seller and buyer.
5. In sales, the relationship between buyer and seller is that of debtor and creditor.
6. Consignment is an act of sending goods by owner to his- agent for sale purpose.
7. Consignment outward book treatment is similar to cash book.
8. The remuneration of the consignee for selling the goods of consignor is known as con
9. Del- credre commission is calculated on total sales.
10. Stock on consignment is the asset of the consignee.
11. Stock on consignment is the unsold stock of goods with the consignee.
12. Normal loss occurs due to leakage.
13. Abnormal loss occurs due to evaporation.
14. Normal loss and abnormal loss does not affect on the working of stock on consignme
15. Account sales is prepared by consignee.
16. Proforma invoice send by consignor to the consignee,
17. Consignment account is a nominal account.
18. Goods sent on consignment is a nominal account.
19. Consignee and consignor are personal accounts.
20. Forwarding letter in consignment is known as proforma invoice.
• Kill in the Blanks.
1. -------------------- is an act of sending the goods by the owner to his agent for the purp
2. is a person who sends his goods for sale purpose in consignment
3. is a person to whom goods are consigned for sale purpose in consig
4. In consignment, generally the manufacturers or producers are the------------------- .
5. The relationship between consignor and consignee is that of-------------------- and —
6. The dispatch of goods by the consignor to the consignee will be a--------------------- 1
view point.
7. The dispatch of goods by the consignor to the consignee will be a -----
consignee's view point.
8. The book which is maintained by consignor for the goods consigned is known as -
9. The accounting treatment of consignment outward book is similar to----------------
10. The book which is maintained by consignee for goods received from differiknown as-------------------- .