Advance Accounting and Auditing

Manufacturing cost + Cost of Goods sold

Direct material plus factory overheads

Direct Labor + Direct Material

None of these

30 days

45 days

60 days

90 days

1990

2001

2002

2003

Cash received from debtor

Goods sold on credit

Supplies consumed in the office

Salaries paid to employees

Error of Omission

Error of Principle

Compensation Errors

None of these

Can be ascertained

Cannot be ascertained

Easily ascertained

None of these

Income from poultry farm

Income from cultivation of rice

Income from sale of water for irrigation

Royalty income from mines

Royalty income from mines

Income from cultivation of rice

Income from sale of irrigation water

Income from poultry farm

In widely used by manufacturing firms

Is often used by merchandising firms

Usually results in a larger amount of tax

Cannot be used in filing income tax returns

5

0

3

7