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Mgt101- Financial Accounting 01

19 Questions
Financial Accounting Quizzes & Trivia

MGT101- Financial Accounting

Questions and Answers
  • 1. 
    • A. 

      Financial Expenses

    • B. 

      Operating Expenses

    • C. 

      Marketing Expenses

    • D. 

      Direct Expenses

  • 2. 
    Sale of goods to Amir is wrongly debited to Umair A/c instead ofAmir A/c. Both are debtors of business, this is an example of:
    • A. 

      Error of Omission

    • B. 

      Error of Commission

    • C. 

      Error of Principle

    • D. 

      Error of Original entry

  • 3. 
    Under the diminishing balance method, depreciation is calculated on:
    • A. 

      The original cost

    • B. 

      The scrap value

    • C. 

      Book value

    • D. 

      Both original cost and Scrap value

  • 4. 
    Which of the following is CORRECT if depreciation is given in trial balance?
    • A. 

      It means depreciation has already been deducted from concerned asset

    • B. 

      It will be shown as expense in income statement only

    • C. 

      It will not deduct from concerned asset in Balance Sheet

    • D. 

      All of the given options are correct

  • 5. 
    What will be the entry of disposal of an asset at cost price?
    • A. 

      Debit Fixed Asset Disposal and Credit Fixed Asset Cost

    • B. 

      Debit Accumulated Dep. and Credit Fixed Asset Disposal

    • C. 

      Debit Cash / Bank and Credit Fixed Asset Disposal

    • D. 

      None of the given options

  • 6. 
    • A. 

      Trial balance

    • B. 

      Statement of affairs

    • C. 

      Balance Sheet

    • D. 

      Sales accounts

  • 7. 
    • A. 

      Voucher

    • B. 

      General Journal

    • C. 

      General Ledger

    • D. 

      Trial Balance

  • 8. 
    Which of the following is an example of operating expense?
    • A. 

      Purchasing operating equipment

    • B. 

      Purchasing cleaning services

    • C. 

      Purchasing an investment in another company

    • D. 

      Purchasing a computer for the accounting office

  • 9. 
    Which of the following particular is NOT included in journal voucher?
    • A. 

      Name of organization

    • B. 

      Bank receipt number

    • C. 

      Debit amount

    • D. 

      Credit amount

  • 10. 
    Which of the following assets are shown at written down value in balance sheet?
    • A. 

      Current assets

    • B. 

      Liquid assets

    • C. 

      Floating assets

    • D. 

      Fixed assets

  • 11. 
    The balance in drawings account is transferred to which of the following at the end of the year.
    • A. 

      Capital account

    • B. 

      Shareholder account

    • C. 

      Cash account

    • D. 

      Expense account

  • 12. 
    (Amount of new provision + Amount of bad debts) < Amount of old provision then the resulting figure will be shown at:
    • A. 

      Debit side of Profit & Loss account

    • B. 

      Credit side of Profit & Loss account

    • C. 

      Asset side of Balance Sheet

    • D. 

      Asset side of Balance Sheet

  • 13. 
    Goods sold to Mr. Salman for RS. 6,000 have been forgotten to enter in books of accounts, this is an example of
    • A. 

      Error of Omission

    • B. 

      Error of Commission

    • C. 

      Error of Principle

    • D. 

      Error of Original entry

  • 14. 
    What is the next step to Journalizing in Accounting cycle?
    • A. 

      Recording

    • B. 

      Posting

    • C. 

      Balancing

    • D. 

      Analyzing

  • 15. 
    If salaries are Rs. 2500, purchases Rs. 18,000 and rent Rs. 400; what will be administrative expenses?
    • A. 

      Rs.20, 900

    • B. 

      Rs. 2,900

    • C. 

      Rs. 2,500

    • D. 

      Rs. 400

  • 16. 
    Sales to Mr. A of Rs. 336 have been debited to Mr. B account, this will be rectified by:
    • A. 

      Debiting Mr. A’s account and crediting Mr. B’s account

    • B. 

      Debiting Mr. B’s account and crediting Mr. A’s account

    • C. 

      Crediting both accounts

    • D. 

      Debiting both accounts

  • 17. 
    • A. 

      Amount of depreciation increases every year

    • B. 

      Amount of depreciation remains constant for every year

    • C. 

      Amount of depreciation decreases every year

    • D. 

      None of the given options

  • 18. 
    What will be debited, if business purchased Vehicle on cash?
    • A. 

      Vehicle account

    • B. 

      Business account

    • C. 

      Cash account

    • D. 

      Business account

  • 19. 
    Which of the following is NOT correct?
    • A. 

      Decrease in Assets will be debit

    • B. 

      Decrease in Liabilities will be debit

    • C. 

      Decrease in Expenses will be credit

    • D. 

      Decrease in Revenue will be debit