MGT101 Financial Accounting Exam 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 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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