MGT101- Financial Accounting 2
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This is a interesting and important quiz for accounting. Take this quiz and have a good time!
- 1.A transaction that has been recorded in wrong account of the same class instead of being recorded in the right account
- A.
Error of Omission
- B.
Error of Commission
- C.
Error of Principle
- D.
Error of Original entry
- 2.Which of the following is a debit entry on the Bank Statement that might not appear in the Cash Book?
- A.
A standing order
- B.
An uncredited cheque
- C.
A credit transfer
- D.
An unpresented cheque
- 3.Which of the following account balance is shown on debit side of Trial Balance?(It is assumed that all account balances are shown on normal balance).
- A.
Capital account
- B.
Sundry creditors account
- C.
Accounts payable account
- D.
Sundry debtors account
- 4.If cost of sales is Rs. 95,000, income from sales Rs. 200,000 and operatingexpenses Rs. 300,000. What will be net result?
- A.
Rs.195,000 Losses
- B.
Rs.195,000 Profits
- C.
Rs.105,000 Profits
- D.
Rs.105,000 Losses
- 5.In which of the following statement opening stock is shown?
- A.
Profit and loss account
- B.
Balance sheet
- C.
Cash flow statement
- D.
Owner’s equity
- 6.Working capital Rs. 20,000, Current liabilities Rs. 30,000 and fixed assets Rs.100,000; calculate current assets?
- A.
Rs. 10,000
- B.
Rs. 50,000
- C.
Rs. 110,000
- D.
Rs. 120,000
- 7.Which of the following content(s) is (are) included in the Cost of goods sold?
- A.
Opening stock
- B.
Purchases
- C.
Freight in
- D.
All of the given options
- 8.Which of the following Organization converts raw material into finished goods?
- A.
Trading concern
- B.
Manufacturing concern
- C.
Merchandising concern
- D.
Service concern
- 9.Which of the following is an example of direct materials cost?
- A.
Production worker’s wages
- B.
Depreciation expenses
- C.
A piece of wood for the production of chair
- D.
Polish and finishing material for chair
- 10.In cost of goods sold statement, the ‘cost of material consumed’ is equal to:
- A.
Opening raw material inventory + Purchases – Ending raw material inventory
- B.
Opening raw material inventory - Purchases + Ending raw material inventory
- C.
Ending raw material inventory - Opening raw material inventory – Purchases
- D.
Ending raw material inventory + Opening raw material inventory + Purchases
- 11.What would be the value of Total Factory Cost, if cost of raw materials, directlabor costs, and manufacturing overhead costs are Rs.80,000, Rs.50,000, andRs.60,000 respectively?
- A.
Rs.130, 000
- B.
Rs.110, 000
- C.
Rs.140, 000
- D.
Rs.190, 000
- 12.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
- 13.
- A.
20.0%
- B.
25.0%
- C.
35.5%
- D.
50.4 %
- 14.Calculate depreciation of machine after first year by using diminishing balancemethod with the help of given data?If, Cost of machine = Rs.400, 000Useful life = 5 yearsResidual value = Rs.25, 000Sale price = Rs.40, 000Rate of depreciation = 40%
- A.
Rs. 160,000
- B.
Rs. 11,840
- C.
Rs. 34,560
- D.
Rs. 34,860
- 15.Which one of the following is INCORRECT about closing Stock?
- A.
It is added into current assets
- B.
It is deducted from material available for use
- C.
It becomes opening stock of next year
- D.
It increases the owner’s equity of business
- 16.In the cost of goods sold statement, Cost of direct material consumed + Directlabor = ___________
- A.
Conversion cost
- B.
Prime cost
- C.
Total factory cost
- D.
Cost of goods manufactured
- 17.The total of all costs incurred to convert raw material into finished goods isknown as:
- A.
Prime cost
- B.
Conversion cost
- C.
Sunk cost
- D.
Opportunity cost
- 18.In cost of goods sold statement the ‘total factory cost’ is equal to:
- A.
Cost of material consumed + Labor cost
- B.
Cost of material consumed + Conversion cost
- C.
Cost of material consumed + Total factory cost
- D.
Cost of material consumed + Factory overhead
- 19.Which of the following is (are) inventory valuation method(s)?
- A.
FIFO
- B.
LIFO
- C.
Weighted average
- D.
All of the given options
- 20.The cost of an incomplete fixed asset is transferred to _________ as on BalanceSheet date.
- A.
Capital account
- B.
Capital work in progress account
- C.
Relevant asset account
- D.
Owner's equity account
- 21.Under the straight line method of depreciation:
- 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
- 22.Which of the following asset is NOT depreciated?
- A.
Factory Buildings
- B.
Office Equipment
- C.
Land
- D.
Plant & Machinery
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