MGT101 Financial Accounting Exam Quiz!

41 Questions | By Yasirnadeem | Updated: Mar 22, 2022 | Attempts: 418

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MGT101 Financial Accounting Exam Quiz! - Quiz

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1.

Calculate depreciation of the asset for five years by using written down value method. Also show accumulated depreciation. Cost of the asset Rs. 1,20,000 Depreciation Rate 10% Expected Life 5 years
2.

Particulars Rs. Opening written down value of machine 1,00,000 Cost of new machine purchased during the year 50,000 Depreciation during the year 21,000 Closing written down value (WDV) ?
- A.
  
  Rs. 1, 29,000
- B.
  
  Rs. 1, 50,000
- C.
  
  Rs. 1, 21,000
- D.
  
  Rs. 71,000
3.

Find out the missing value of an Accounting Equation with the help of given data: Owner’s equity Rs. 22,500 Total Liabilities Rs. 80, 385 Cash in hand Rs. 1,000 Cash at bank Rs. 2,000 Debtors Rs. 500
- A.
  
  Rs. 1, 02,885 other assets
- B.
  
  Rs. 1, 02,885 other liabilities
- C.
  
  Rs. 99,885 current liabilities
- D.
  
  Rs. 99,385 other assets
4.

Bank Reconciliation Statement is prepared by:
- A.
  
  Bankers
- B.
  
  Accountant of the business
- C.
  
  Statutory auditor
- D.
  
  Manger
5.

Bank Reconciliation Statement is:
- A.
  
  A memorandum statement
- B.
  
  A ledger account
- C.
  
  A part of cash book
- D.
  
  A part of journal
6.

Expenditures incurred annually on renewal of patent are known as:
- A.
  
  Revenue Expenditures
- B.
  
  Capital Expenditures
- C.
  
  Financial Expenditures
- D.
  
  Operating Expenditures
7.

Particulars Rs. Opening stock of raw material 100,000 Closing stock of raw material 85,000 Purchases of raw material during the period 200, 000 Cost of Material Consumed ?
- A.
  
  Rs. 205,000
- B.
  
  Rs. 215,000
- C.
  
  Rs. 220,000
- D.
  
  Rs. 225,000
8.

Cost of asset Rs. 1,00,000 Life of asset 5 years Depreciation for the each year Rs. 5,000 Sale price after 5 years Rs.15,000 Written Down Value of Asset on 5^th year Rs. 75,000 Profit or loss on disposal of fixed asset ?
- A.
  
  Rs. 60,000 loss
- B.
  
  Rs. 75,000 profit
- C.
  
  Rs. 25,000 loss
- D.
  
  Rs. 1, 00,000 profit
9.

Which of the following account will be credited, when the goods are purchased on cash?
- A.
  
  Stock account
- B.
  
  Cash account
- C.
  
  Supplier account
- D.
  
  Work in process account
10.

The cost of sales is Rs. 60,000, sales are Rs. 95,000 and operating expenses are Rs. 20,000 during the year, what would be the value of Gross Profit?
- A.
  
  Rs. 15,000
- B.
  
  Rs. 35,000
- C.
  
  Rs. 55,000
- D.
  
  Rs. 60,000
11.

The cost of sales is Rs. 60,000, sales are Rs. 95,000 and operating expenses are Rs.20,000 during the year. What would be the Net Profit?
- A.
  
  Rs.15,000
- B.
  
  Rs. 35,000
- C.
  
  Rs. 55,000
- D.
  
  Rs. 60,000
12.

Which of the following account balance will be 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.
  
  Cash account
13.

The amount of salary paid to Mr. Sohail should be debited to:
- A.
  
  Mr. Sohail account
- B.
  
  Salaries account
- C.
  
  Cash account
- D.
  
  Drawings account
14.

Which of the following account will be credited, if business bought goods on credit from Mr. Ali?
- A.
  
  Purchases account
- B.
  
  Mr. Ali account
- C.
  
  Cash account
- D.
  
  Sales account
15.

The unfavorable balance of Profit and Loss account should be:
- A.
  
  Added in liabilities
- B.
  
  Subtracted from current assets
- C.
  
  Subtracted from liabilities
- D.
  
  Subtracted from capital
16.

Which of the following is NOT an example of Current Asset?
- A.
  
  Bank Overdraft
- B.
  
  Accounts Receivable
- C.
  
  Notes Receivable
- D.
  
  Prepaid Expenses
17.

Which one of the following is NOT prepared by Non profit organizations?
- A.
  
  Profit & Loss account
- B.
  
  Income & Expenditure account
- C.
  
  Receipts & Payments account
- D.
  
  Balance Sheet
18.

An informal accounting statement that lists the ledger account balances at a point in time and compares the total of debit balances with the total of credit balances is known as:
- A.
  
  Income Statement
- B.
  
  Balance Sheet
- C.
  
  Trial Balance
- D.
  
  Cash Book
19.

Documentary evidence, in a specific format used to record the details of a transaction is known as:
- A.
  
  Account
- B.
  
  Voucher
- C.
  
  Journal
- D.
  
  Ledger
20.

Summarized record of transactions related to individuals or things is called a/an ___________.
- A.
  
  Account
- B.
  
  Voucher
- C.
  
  Journal
- D.
  
  Trial balance
21.

When a Liability is reduced or decreased, it is recorded on the:
- A.
  
  Right or debit side of the account
- B.
  
  Left or debit side of the account
- C.
  
  Left or credit side of the account
- D.
  
  Right or credit side of the account
22.

What will be the effect on accounting equation, when payment is made to the creditor of the business?
- A.
  
  Decrease in an asset, decrease in a liability
- B.
  
  Increase in an asset, increase in a liability
- C.
  
  Decrease in an asset, decrease in owner's equity
- D.
  
  Increase in an asset, increase in owner's equity
23.

Commercial Accounting is based on:
- A.
  
  Single entry book keeping
- B.
  
  Double entry book keeping
- C.
  
  Both single and double entry book keeping
- D.
  
  Cash basis of book keeping
24.

Cost incurred for the maintenance of shop is considered as _________.
- A.
  
  Deferred expense
- B.
  
  Capital expense
- C.
  
  Revenue expense
- D.
  
  Preliminary expense
25.

Mr.” A” sold goods for Rs. 3, 00,000 to Mr. “B”, Rs. 3, 00,000 will be treated as _____________ for business.
- A.
  
  Revenue
- B.
  
  Net profit
- C.
  
  Gross profit
- D.
  
  Operating profit