MGT101- Financial Accounting 2

22 Questions

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Financial Accounting Quizzes & Trivia

This is a interesting and important quiz for accounting. Take this quiz and have a good time!


Questions and Answers
  • 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