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Assume Power LLC sold 500 fans for OMR 40 each. But because of small unidentifiable color damage, the company offered OR 5000 sales allowance to the customer. From the following given options identify the journal entry for recording the allowance expenses in the books of company.

a. Dr Cash OMR 5000 and Cr Accounts receivables OMR 5000

b. Dr Accounts receivables OMR 5000 and Cr Cash OMR 5000

c. Dr Accounts receivables OMR 5000 and Cr Sales allowance OMR 5000

d. Dr Sales allowance OMR 5000 and Cr Accounts receivables OMR 5000

Assume Singh and Company (Heavy Engineering Division) purchased some tools for OMR 950 and issued the check to the same amount. A cheque for the amount of OMR 950 issued to the tools supplier was misreported in the cash book as OMR 590. Therefore while preparing the Bank Reconciliation statement, what adjustment the accountant will do? Choose the correct answer from the following given options.

a. Add OMR 360 to the bank statement balance

b. Deduct OMR 360 from the bank statement balance

c. Add OMR 360 to the cash book balance

d. Deduct OMR 360 from the cash book balance

From the following given options identify any two steps essential in establishing a petty cash fund.

i)Appointing the accountant to take care of petty cash transactions

ii)Appointing the treasurer

iii)Appointing a petty cash custodian who will be responsible for the fund

iv)Determining the size of the fund.

a. i) & ii)

b. iii) & iv)

c. i) & iv)

d. ii) & iii)

Easa Saleh Al Gurg Group Careers established petty cash fund with OMR 300. The petty cash custodian spent OMR 270 on different petty expenses and preserved all the receipts in the cash box. Therefore the petty box of the company containing OMR 30 cash plus OMR 270 receipts. The cash custodian sent all the receipts to the accountant and accountant replenished the cash in the cash box. How much the accountant of the company replenished cash in the petty cash box? Identify the correct answer from the following given options.

a. OMR 330

b. OMR 270

c. OMR 300

d. None of the given options

Assume that Sohar Aluminium Company purchased a machinery for OMR 2000 and spent OMR200 for its transportation. In addition they paid tax OMR 450 during purchase, Transportation cost OMR 100, Insurance during transportation OMR 50, and Assembling charges OMR 100, installation and testing charges OMR 250. After transportation and installation, the company also paid the insurance premium of OMR 50 to cover the future loss from the machinery due to accidents and breakdowns. Compute the cost of the machinery.

a. OMR3150

b. OMR3100

c. None of the given options

d. OMR3200

Cash equivalents are short-term, highly liquid investment assets those meets which of the following two criteria?

i)Maturity period these liquid assets must be more than one year

ii)Readily convertible to a known cash amount

iii)Sufficiently close to their due date so that their market value is not sensitive to interest rate changes.

iv)Maturity period these liquid assets must be exactly 5 years

a. i) & iv)

b. i) & ii)

c. ii) & iii)

d. iii) & iv)

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