MGT101 Financial Accounting Exam Quiz!

41 Questions | Total Attempts: 380

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MGT101 Financial Accounting Exam Quiz!

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Questions and Answers
  • 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 5th 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

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