MGT101 Quiz No. 4
Dated 07-01-2012
Consider the following data: Particulars Rs. Assets ? Owner's equity 35,000 Liabilities 90,000
Select correct option:
Rs. 35,000
Rs. 55,000
Rs. 1, 25,000
Rs. 1, 05,000
The totals of return inwards Journal (day book) are
Select correct option:
credited to the trade receivables control account
debited to the trade payables control account
debited to the trade receivable control account
credited to the trade payables control account
ABC co. has a capital of Rs. 100,000, Long Term Liabilities Rs. 50,000, net profit during the year Rs. 15,000 and the amount of total liabilities is Rs 175,000. What will be the amount of Current Liabilities?
Select correct option:
Rs. 20,000
Rs. 150,000
Rs. 10,000
Rs. 25,000
The third party who owes money to the business is called:
Select correct option:
Debtor
Creditor
Stakeholder
stockholder
Which of the following voucher is used to record receipt of cash?
Select correct option:
Journal Voucher
Receipt Voucher
Payment Voucher
Nominal Voucher
The allocation of the cost of a tangible plant asset to expense in the periods, in which services are received from the asset, is termed as:
Select correct option:
Appreciation
Depreciation
Fluctuation
None of the given options
The minimum number of members that can form a public limited company are:
Select correct option:
1
2(Not Sure)
3
7
Budget is a plan of income, expenses & other financial operations for:
Select correct option:
Current period
Future period
Past period
Find out the missing value of an Accounting Equation with the help of given data: Furniture Rs. 90,000 Cash Rs.100, 000 Debtors Rs.10, 000 Other Assets Rs. 1,000 Owner's equity Rs. 90, 000 Liaibilities ?
Select correct option:
Rs. 201,000
Rs. 111, 000
Rs. 290, 000
Rs. 291, 000
From the given particulars, calculate the rate of depreciation under the fixed installment method of depreciation: Cost of Asset = Rs. 2,000 Residual Value = Rs. 400 Useful Life = 4 years
Select correct option:
20 %
30 %
25 %
33 %
Which of the following formula is used to calculate the cost of goods sold?
Select correct option:
Cost of goods available for sale minus net purchases plus ending inventory
Beginning inventory plus net purchases plus freight in minus ending inventory
Beginning inventory minus net purchases minus ending inventory
Beginning inventory minus ending inventory
The investment of Rs. 10,000 made by the owner in business will have an effect on which of the following accounts?
Select correct option:
Cash Account & Capital Account
Cash Account & Expense Account
Capital Account & Revenue Account
Capital Account & Expense Account
Goods sold to Mr. Naeem for Rs. 5,000 are wrongly recorded in sales journal at Rs. 500 and same amount is posted in Mr. Naeem's account, this is an example of:
Select correct option:
Compensating errors
Error of Commission
Error of Principle
Error of Original entry
Which of the following is the first book to record a transaction?
Select correct option:
Trial Balance
Journal
Trial Balance
Balance Sheet
Which of the following would NOT be considered as a component of 'cost' of stock?
Select correct option:
Salaries of selling staff
Transportation inward costs
Import duties
Purchase price
Which of the following is (are) characteristic(s) of Bad Debt?
Select correct option:
It is a definite loss to the business
It must be shown in Profit & loss account
No provision is necessary for it
All of the given options
The difference between Management Accounting and Financial Accounting is that:
Select correct option:
Financial accounting is used by managers to plan strategies in the area of company growth
Financial accounting is used by external investors to gain information about the company
Managerial accounting is used by the internal managers to plan for daily business activities
Both 2 and 3
If Current Assets Rs. 100,000, Current Liability Rs. 50,000 and Fixed Assets Rs. 2, 00,000. Calculate working capital.
Select correct option:
Rs. 50,000
Rs. 1, 00,000
Rs. 1, 50,000
Rs. 3, 00,000
Which of the following is NOT a revenue expenditure?
Select correct option:
Petrol consumed in motor vehicles
Cost of saleable goods
Bad debts
Premium given on lease
The Amount changed to deprecation goes on declining in:
Depreciation fixed method
Annuity method
Written-down value method
Straight line depreciation method
If Cost of sales in Rs. 90,000, income from sales Rs. 200,000 and operating expenses Rs.100,000,. What will be net results?
Rs. 5,000 Losses
Rs. 10,000 Profits
Rs. 1,95,000 Profits
Rs. 1,95,000 Losses
The main purpose of ______________ is to as certain true result of the business operation during particular period of time.
Cost Accounting
Financial Accounting
Managerial Accounting
Tax Accounting
The bank loan or the bank charges are called:
Cost of good expenses
Selling expenses
Financial expenses
Administrative expenses
Question # 1 of 20 ( Start time: 01:11:56 PM)
Which of the following item is found in a Journal entry? (1) Date of each transaction (2) Rupee amount of each debit and credit (3) Explanation of each transaction
1 only
1 & 2 only
2 & 3 only
1, 2 & 3
Question # 2 of 20 ( Start time: 01:12:47 PM)
If Purchase price of machine = 400,000 Profit on disposal = Rs. 5,000 Residual value = Rs. 10,000 Useful life of machine = 5 years Find Sale price at the time of disposal =?
Rs. 15,000
Rs. 10,000
Rs. 20,000
Rs. 5,000
Question # 3 of 20 ( Start time: 01:14:10 PM)
Which of the following is the main cause of depreciation?
Fall in the market value of money
Fall in the market value of an asset
Physical wear and tear
Question # 4 of 20 ( Start time: 01:15:19 PM)
The estimated value of an asset after the expiry of its useful life is called as:
Written Down value
Residual Value
Accumulated depreciation
Sales value
Question # 5 of 20 ( Start time: 01:16:13 PM)
In the creditors control account, all of the below exist execept:
credit purchases
purchase returns
cash purchases
cash/cheques paid
Question # 6 of 20 ( Start time: 01:17:13 PM)
Franchise rights, goodwill and patents are the examples of:
Liquid assets
Tangible assets
Intangible assets
Current assets
Question # 7 of 20 ( Start time: 01:17:54 PM)
In which of the following statement opening stock is shown?
Profit and loss account
Balance sheet
Cash flow statement
Owner's equity
Question # 8 of 20 ( Start time: 01:18:44 PM)
On the receipts side of the cash and bank book, a column is added in which the receipts from debtors are seperately noted, this type of cash/bank book is also called:
single column cash/bank book
cash/bank book
multi column cash/bank book
none of the above
Question # 9 of 20 ( Start time: 01:20:03 PM)
If you start with cash book favorable balance in Bank Reconciliation Statement, which item will be added?
Cheque deposited but not credited by the bank
Cheques omitted to be deposited into bank
Any amount directly collected by bank on behalf of customer but not recorded in cash book
Debit side of cash book was overcast
Question # 10 of 20 ( Start time: 01:21:33 PM)
Which of the following is NOT a characteristic of Cash Book?
It has two identical sides—left hand side, the debit side and right hand side, the credit side
It verifies the arithmetic accuracy of posting of entries from the Journal to the Ledger
The difference between the total of two sides of cash book shows cash in hand
It always shows debit balance. It can never show credit balance
Question # 12 of 20 ( Start time: 01:23:13 PM)
Which of the following is NOT a rule for revaluation of fixed assets?
The change in the value should be permanent
Revaluation has to be carried out at regular intervals
Whole class of asset has to be revalued
The profit on revaluation should be credited to revaluation reserve account
Question # 13 of 20 ( Start time: 01:24:38 PM)
A transaction in which Cash A/c and Bank A/c are involved, is recorded on both the sides of Double Column Cash Book, it is called ______________.
Rectifying Entry
Adjusting Entry
Contra Entry
Closing Entry
Question # 14 of 20 ( Start time: 01:25:57 PM)
What would conversion costs if costs of raw materials, direct labor costs, and manufacturing overhead costs Rs.80,000, Rs.50,000, and Rs.60,000, respectively?
Rs.130, 000
Rs.110, 000
Rs.140, 000
Rs.190, 000
Question # 15 of 20 ( Start time: 01:27:02 PM)
The Sales Returns Day Book would include:
Goods bought on credit
Fixed Assets bought that are inappropriate for business
Stock that customers have returned
Goods bought on credit that are returned to the original supplier
Question # 16 of 20 ( Start time: 01:27:44 PM)
Loss on the sale of plant and machinery should be written off against:
Sales premium account
Depreciation fund account
Sales account
Plant and machinery
Question # 17 of 20 ( Start time: 01:29:07 PM)
In an account if debit side > credit side, the balance is known as the:
Negative Balance
Debit balance
Positive Balance
Credit balance
Question # 18 of 20 ( Start time: 01:29:56 PM)
Any expense that becomes a source of income generation for a long time period is called __________
Capital Expense
Revenue Expense
Revenue Receipt
Capital Receipt
Question # 19 of 20 ( Start time: 01:30:46 PM)
Which one of the following is NOT a feature of sole proprietorship business.
Easy Formation
Easy Dissolution
Unlimited Liability
Separate Legal Entity
Question # 20 of 20 ( Start time: 01:31:35 PM)
Carriage paid Rs. 50 for the newly purchased machinery if debited to carriage account will effect:
Only carriage account
Only machinery account
Both carriage and machinery account
None of the given options
Which of the following is(are) TRUE about the sole trader form of business?
A sole trader is liable to pay income tax on his/her earnings
Sole traders must have to prepare books of accounts by law
Sole traders must register the name of their business with the Registrar of Companies
All of the given options
In which depreciation method Depreciation remains constant?
Reducing balance method
Reducing balance method
Reducing balance method
Reducing balance method
Goods returned by Mr. B amount to Rs. 4,000. The entry in the books will be:
Mr. B is Debit
Sales Returns is Credit111
Sales Returns is Debit Mr. B is Credit
Mr. B is Debit Accounts Receivable Credit
Which of the following Organization converts raw material into finished goods?
Select correct option:
Trading concern
Manufacturing concern
Merchandising concern
Service concern
Find out the missing value of an Accounting Equation with the help of given data: Cash Rs.100, 000 Debtors Rs.10, 000 Other Assets Rs. 1,000 Owner's equity Rs. 1, 000 Liabilities ?
Rs. 12,000
Rs. 11,000
Rs. 110,000
Rs. 111,000
Question # 7 of 20 ( Start time: 02:43:34 PM)
________ is the art of recording monetary transactions in the books of Accounts in a proper manner:
Accounting
Book Keeping
Posting
Vouching
Question # 8 of 20 ( Start time: 02:44:59 PM)
Which of the following Journal entry will be recorded when the bad debts are recovered?
Cash account (Dr.) & Bad Debts recovered account (Cr.)
Accounts Receivable (Dr.) & Bad Debts recovered account (Cr.)
Bad debts recovered account (Dr.) and profit & loss account (Cr.)
Provision for doubtful debts account (Dr.) & cash account (Cr.)
Which of the following is/are the example/s of Intangible Asset?
Copy rights
Good will
Patent rights
All of the given options
Question # 10 of 20 ( Start time: 02:46:42 PM)
Under the straight line method of depreciation:
Amount of depreciation increases every year Note Sure
Amount of depreciation remains constant for every year
Amount of depreciation decreases every year
None of the given options
Question # 11 of 20 ( Start time: 02:48:10 PM)
If, Cost of machine = Rs.400, 000 Useful life = 5 years Residual value = Rs.25, 000 Sale price = Rs.40, 000 Rate of depreciation = 40% What will be the amount of depreciation charged on 3rd year using straight line method?
Rs. 35,000
Rs. 57,600
Rs. 75,000
Rs. 96,000
Loss on revaluation of fixed asset should be charged to:
Profit and loss account
Balance sheet
Revaluation Reserve account
Accumulated depreciation account
Question # 13 of 20 ( Start time: 02:51:01 PM)
Debts that are not collectible and worthless to the creditor are known as:
Bad debts
Good debts
Doubtful debts
Provision for doubtful debts
Question # 14 of 20 ( Start time: 02:52:08 PM)
Which of the following would NOT be considered as a component of 'cost' of stock?
Salaries of selling staff
Transportation inward costs
Import duties
Purchase price
Question # 15 of 20 ( Start time: 02:52:30 PM)
Total depreciation of an asset can not exceed its:
Scrap value
Residual value
Market value
Depreciable value
Question # 16 of 20 ( Start time: 02:53:56 PM)
A company uses straight line method of depreciation for an item of equipment that cost Rs. 28,000, has salvage value of Rs. 3,000, and has a five year useful life. What will be the book value of asset at the end of third year?
Rs. 15,000
Rs. 10,000
Rs. 18,000
Rs. 13,000
Question # 17 of 20 ( Start time: 02:54:37 PM)
Which of the following is / are the particular/s of a cash book? (1) Date of transaction (2) Account title (3) Amount
1 only
1 & 2 only
1 & 3 only
1, 2 & 3
Question # 18 of 20 ( Start time: 02:55:51 PM)
At the end of the accounting period, the balance which is showing on the debit side of ledger account is called as:
Credit Balance
Debit Balance
Contra account
None of the above
Question # 19 of 20 ( Start time: 02:56:43 PM)
The amount charged to depreciation goes on declining in:
Depreciation fixed method
Annuity method
Written-down value method
Straight line depreciation method
Question # 20 of 20 ( Start time: 02:57:25 PM)
Which of the following is NOT a revenue expenditure?
Petrol consumed in motor vehicles
Cost of saleable goods
Bad debts
Premium given on lease
Which of the following is (are) item (s) of cost of goods sold statement?
Select correct option:
Purchase of raw material
Any tax/freight paid on purchases
Any expense incurred on carriage/transportation of raw material purchased items
All of the given options
Question # 2 of 20 ( Start time: 12:44:52 AM ) Total M a r k s: 1
Which of the following voucher is used to record transactions that do not affect bank & cash?
Select correct option:
Journal Voucher
Receipt Voucher
Payment Voucher
Nominal Voucher
Question # 3 of 20 ( Start time: 12:45:48 AM ) Total M a r k s: 1
If salaries are Rs. 2500, purchases Rs. 18,000 and rent Rs. 400; what will be administrative expenses? Select correct option:
Rs. 400
Rs. 2,500
Rs. 2,900
Rs.20, 900
Question # 4 of 20 ( Start time: 12:46:54 AM ) Total M a r k s: 1
What would conversion costs if costs of raw materials, direct labor costs, and manufacturing overhead costs Rs.80,000, Rs.50,000, and Rs.60,000, respectively?
Select correct option:
Rs.130, 000
Rs.110, 000
Rs.140, 000
Rs.190, 000
Question # 5 of 20 ( Start time: 12:47:57 AM ) Total M a r k s: 1
A form that allows individuals to compare their personal bank account records to the bank's records of the individual's account balance in order to uncover any possible discrepancies is known as:
Select correct option:
Bank statement
Income statement
Financial statement
Bank Reconciliation statement
Question # 6 of 20 ( Start time: 12:49:23 AM ) Total M a r k s: 1
Cash and other resources that are expected to turn to cash or to be used up within one year of the balance sheet date are called:
Select correct option:
Current liability
Current assets
Fixed assets
Long-term assets
Question # 7 of 20 ( Start time: 12:50:15 AM ) Total M a r k s: 1
An accounting system is used by a business to:
Select correct option:
Analyze transactions
Handle routine bookkeeping tasks
Structure information
All of the given options
Question # 8 of 20 ( Start time: 12:51:02 AM ) Total M a r k s: 1
Particulars Rs. Opening written down value of machine 3,75,000 Cost of machine 50,000 Depreciation during the year 11,500 Closing written down value (WDV) of the Machines ?
Select correct option:
Rs. 4,13,500
Rs. 4, 25,000
Rs. 3, 36,500
Rs. 61,500
Question # 9 of 20 ( Start time: 12:52:03 AM ) Total M a r k s: 1 What will be debited, if business purchased Furniture on cash?
Select correct option:
Furniture account
Cash account
Business account
Bank account
Expenditure incurred in acquiring the patent right for the business is an example of:
Select correct option:
Revenue expenditure
Capital expenditure
Deferred revenue expenditure
Administrative expenditure
Question # 11 of 20 ( Start time: 12:52:44 AM ) Total M a r k s: 1
Total assets - Total liabilities =?
Select correct option:
Owner's Equity
Expenses
Retained earnings
Net profit
Question # 12 of 20 ( Start time: 12:54:06 AM ) Total M a r k s: 1
What will be debited, if business bought goods on credit from Mr. Ali?
Select correct option:
Purchases account
Mr. Ali account
Cash account
Sales account
Question # 13 of 20 ( Start time: 01:00:12 AM ) Total M a r k s: 1
Prepaid rent given in the Trial Balance will be treated as a (an):
Select correct option:
Asset
Liability
Revenue
Deferred expense
Question # 14 of 20 ( Start time: 01:00:51 AM ) Total M a r k s: 1
A business event which can be measured in terms of money and must be recorded in books of accounts is called:
Select correct option:
Condition
Transaction
Information
Record
Question # 15 of 20 ( Start time: 01:01:19 AM ) Total M a r k s: 1
Which one of the following is NOT a feature of sole proprietorship business.
Select correct option:
Easy Formation
Easy Dissolution
Unlimited Liability
Separate Legal Entity
Question # 16 of 20 ( Start time: 01:02:31 AM ) Total M a r k s: 1
In which of the following statement opening stock is shown?
Select correct option:
Profit and loss account
Balance sheet
Cash flow statement
Owner's equity
Question # 17 of 20 ( Start time: 01:03:27 AM ) Total M a r k s: 1
The primary purpose of preparing a cash flow statement for an entity is to provide information about: Select correct option:
The profitability of its business operations for a period of time
Its financial position at the end of an accounting period
Its cash receipts and cash payments during an accounting period (Not Sure)
None of the given options
Question # 18 of 20 ( Start time: 01:04:47 AM ) Total M a r k s: 1
Which of the following is (are) example(s) of non distributable profit?
Select correct option:
General reserve
Accumulated profit and loss (credit balance)
Revaluation reserves
None of the given options (Not sure)
Question # 19 of 20 ( Start time: 01:06:10 AM ) Total M a r k s: 1
Which of the following Organization converts raw material into finished goods?
Select correct option:
Trading concern
Manufacturing concern
Merchandising concern
Service concern
In firms cash flow statements, which of the following would appear as a cash outflow?
Select correct option:
The payments for share in a company whose shares are treated on a stock exchange
A decrease in trade debtors over the course of an accounting period
Money received as a result of issuing new shares
Money received as result of selling fixed assets (Not sure)
Which of the following particular/s is/are included in receipt voucher?
Select correct option:
Name of organization
Bank receipt
Date
All of the given options
Which of the following assets is most likely to appreciate rather than depreciate?
Select correct option:
Land
Motor vehicles
Plant and machinery
Fixtures and fittings
Which of the following item needs to be entered in the Cash Book in order to bring it in line with the entries on the Bank Statement?
Select correct option:
A bank charges
An error on the Bank Statement
An uncredited deposit
An unpresented cheque
Wages paid to laborers working in the manufacturing department is treated as an expense of:
Select correct option:
Cost of goods sold
Administrative expenses
Selling expenses
Marketing expenses
Bad debts written off (given in adjustment) always affect the:
Select correct option:
Debtors account
Creditors account
Cash account
Capital account
Carriage paid Rs. 50 for the newly purchased machinery if debited to carriage account will effect:
Select correct option:
Only carriage account
Only machinery account
Both carriage and machinery account
None of the given options
Cost of goods manufactured - opening work in process + ending work in process =?
Select correct option:
Cost of goods sold
Prime cost
Conversion cost
Total factory cost
If cost of sales is Rs. 95,000, income from sales Rs. 200,000 and operating expenses Rs. 300,000. What will be net result?
Select correct option:
Rs. 1, 95,000 Losses
Rs. 1, 95,000 Profits
Rs 1, 05,000 Profits
Rs1, 05,000 Losses
What is the proper order of the following steps in the accounting process? I. Prepare and analyze the trial balance II. Record relevant transactions and events in a journal III. Analyze each transaction and event from source documents IV. Post journal information to ledger accounts
Select correct option:
III. IV. I. II.
I. II. III. IV.
III. II. IV. I.
III. II. I. IV.
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