# MGT101 Financial Accounting Exam Quiz!

41 Questions | Total Attempts: 380  Settings  .

• 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.

• 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.

• 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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