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MGT101 - Financial Accounting Online Quizzes

Wednesday, July 21, 2010 Posted In Edit This
Question # 1 of 15 ( Start time: 07:12:43 PM ) Total Marks: 1

What is the proper order of the following steps in the accounting process? I.

Prepare and analyze the trial balance II. Record relevant transactions and

events in a journal III. Analyze each transaction and event from source

documents IV. Post journal information to ledger accounts

Select correct option:

III. IV. I. II.

I. II. III. IV.

III. II. IV. I.

III. II. I. IV.





Question # 2 of 15 ( Start time: 07:14:12 PM ) Total Marks: 1

Which of the following is an example of direct materials cost?

Select correct option:

Production worker’s wages

Depreciation expenses

A piece of wood for the production of chair

Polish and finishing material for chair





Question # 3 of 15 ( Start time: 07:14:50 PM ) Total Marks: 1

Bad debts written off (given in adjustment) always affect the:

Select correct option:

Debtors account

Creditors account

Cash account

Capital account





Question # 4 of 15 ( Start time: 07:16:02 PM ) Total Marks: 1

The term "Debit" is drived from____________ language.

Select correct option:

Latin

English

French

Chinese





Question # 5 of 15 ( Start time: 07:16:40 PM ) Total Marks: 1

The balance in drawings account is transferred to which of the following at

the end of the year.

Select correct option:

Capital account

Shareholder account

Cash account

Expense account



Question # 6 of 15 ( Start time: 07:17:26 PM ) Total Marks: 1

Expenses incurred for Salaries, heating and lighting are the examples of:

Select correct option:

Preliminary Expense

Deferred Expense

Revenue Expense

Capital Expense





Question # 7 of 15 ( Start time: 07:19:10 PM ) Total Marks: 1

A transaction that has been recorded in wrong account of the same class

instead of being recorded in the right account, this is called:

Select correct option:

Error of Omission

Error of Commission

Error of Principle

Error of Original entry





Question # 8 of 15 ( Start time: 07:20:22 PM ) Total Marks: 1

In the cost of goods sold statement, Cost of direct material consumed +

Direct labor=?

Select correct option:

Conversion cost

Prime cost

Total factory cost

Cost of goods manufactured





Question # 9 of 15 ( Start time: 07:21:04 PM ) Total Marks: 1

Which of the following contents are included in the Cost of goods sold?

Select correct option:

Opening stock

Purchases

Freight in

All of the given option





Question # 10 of 15 ( Start time: 07:21:47 PM ) Total Marks: 1

Cash book is a part of _______ .

Select correct option:

Voucher

General Journal

General Ledger

Trial Balance





Question # 11 of 15 ( Start time: 07:22:58 PM ) Total Marks: 1

The basic accounting principle/concept according to which business record

must be kept separate from the personal records of the owner is known as:

Select correct option:

Going-concern concept

Separate entity principle

Realization principle

Objectivity principle





Question # 12 of 15 ( Start time: 07:23:18 PM ) Total Marks: 1

Discount allowed Rs. 93 to Ali has been recorded in the books of accounts as

Rs. 39. To rectify this error:

Select correct option:

Both accounts will be adjusted with Rs. 93

Both accounts will be adjusted with Rs. 54

Only Ali’ accounts will be adjusted with Rs. 54

Only Discount allowed account will be adjusted with Rs. 54





Question # 13 of 15 ( Start time: 07:24:42 PM ) Total Marks: 1

Total depreciation of an asset can not exceed its:



Select correct option:

Scrap value

Residual value

Market value

Depreciable value





Question # 14 of 15 ( Start time: 07:26:08 PM ) Total Marks: 1

Which of the following will be credited if shares are issued against cash?

Select correct option:

Bank account

Share capital account

Share premium account

Cash account
Question # 1 of 15 ( Start time: 05:41:07 PM ) Total Marks: 1 
Supervisor's salary and equipment repair cost are examples of: 
Select correct option: 

Factory overhead cost 
Direct material cost 
Direct labor cost 
Finished goods cost 







Question # 2 of 15 ( Start time: 05:41:38 PM ) Total Marks: 1 
In an account if credit side > debit side, the balance is known as: 
Select correct option: 

Negative Balance 
Debit Balance 
Credit Balance 
Positive Balance 






Question # 3 of 15 ( Start time: 05:41:57 PM ) Total Marks: 1 
The goal of reconciliation is all of the flowing EXCEPT: 
Select correct option: 

To discover the various things the bank has not done in the pass book but recorded in cash book 
To discover anything that bank has passed through but the cash book has not 
To put right anything that is wrong & draws an explanation for the differences 
To discover any discrepancy that is due to timing rather than error 







Question # 4 of 15 ( Start time: 05:42:51 PM ) Total Marks: 1 
Under the diminishing balance method, depreciation is calculated on: 
Select correct option: 

The original cost 
The scrap value 
Book value 
Both original cost and Scrap value 






Question # 5 of 15 ( Start time: 05:43:50 PM ) Total Marks: 1 
Which of the following voucher is used to record receipt of cash? 
Select correct option: 

Journal Voucher 
Receipt Voucher 
Payment Voucher 
Nominal Voucher 





Question # 6 of 15 ( Start time: 05:44:08 PM ) Total Marks: 1 
Debts that are not collectible and worthless to the creditor are known as: 
Select correct option: 

Bad debts 
Good debts 
Doubtful debts 
Provision for doubtful debts 







Question # 7 of 15 ( Start time: 05:44:31 PM ) Total Marks: 1 
Find out the missing value of an Accounting Equation with the help of given data: Furniture Rs. 90,000 Cash Rs.100, 000 Debtors Rs.10, 000 Other Assets Rs. 1,000 Owner’s equity Rs. 90, 000 Liaibilities ? 
Select correct option: 

Rs. 201,000 
Rs. 111, 000 
Rs. 290, 000 
Rs. 291, 000 






Question # 8 of 15 ( Start time: 05:45:08 PM ) Total Marks: 1 
If, Cost of machine = Rs.400, 000 Useful life = 5 years Residual value = Rs.25, 000 Sale price = Rs.40, 000 Rate of depreciation = 40% What will be depreciation of machine after one years using diminishing balance method? 
Select correct option: 

Rs. 1, 60,000 
Rs. 11,840 
Rs. 34,560 
Rs. 34,860 






Question # 9 of 15 ( Start time: 05:46:21 PM ) Total Marks: 1 
The main purpose of ___________ is to ascertain true result of the business operation during particular period of time. 
Select correct option: 

Cost Accounting 
Financial Accounting 
Managerial Accounting 
Tax Accounting 





Question # 10 of 15 ( Start time: 05:46:47 PM ) Total Marks: 1 
What would be the value of Total Factory Cost, if cost of raw materials, direct labor costs, and manufacturing overhead costs are Rs.80,000, Rs.50,000, and Rs.60,000 respectively? 
Select correct option: 

Rs.130, 000 
Rs.110, 000 
Rs.140, 000 
Rs.190, 000 






Question # 11 of 15 ( Start time: 05:47:19 PM ) Total Marks: 1 
Budget is a plan of income, expenses & other financial operations for: 
Select correct option: 

Current period 
Future period 
Past period 
None of the given options 






Question # 12 of 15 ( Start time: 05:47:37 PM ) Total Marks: 1 
The allocation of the cost of a tangible plant asset to expense in the periods, in which services are received from the asset, is termed as: 
Select correct option: 

Appreciation 
Depreciation 
Fluctuation 
None of the given options 





Question # 13 of 15 ( Start time: 05:47:58 PM ) Total Marks: 1 
The main objective of financial reporting is to provide: 
Select correct option: 

Essential information to internal users of financial reports. 
Useful economic information about the business to the external parties for sound financial decisions. 
Information to internal users about the cash position of the business.

Information to the Securities Exchange Commission (SEC). 






Question # 14 of 15 ( Start time: 05:48:36 PM ) Total Marks: 1 
Particulars Opening written down value of machine Rs. 2,00,000 Cost of new machine purchased during the year Rs. 50,000 Depreciation during the year Rs. 25,000 Closing written down value (WDV) of machines ? 
Select correct option: 

Rs. 2, 25,000 
Rs. 2, 50,000 
Rs. 2, 75,000 
Rs. 75,000 





Question # 15 of 15 ( Start time: 05:49:07 PM ) Total Marks: 1 
Which one of the following is NOT a feature of sole proprietorship business. 
Select correct option: 

Easy Formation 
Easy Dissolution 
Unlimited Liability 
Separate Legal Entity




Question # 1 of 15 ( Start time: 07:31:05 PM ) Total Marks: 1

For which of the following, Control Account system is used?

Select correct option:

Credit sales only

Cash sales only

Credit purchases only

Both Credit sales and Credit purchases



Question # 4 of 15 ( Start time: 07:32:24 PM ) Total Marks: 1

Cash book is a part of _______ .

Select correct option:

Voucher

General Journal

General Ledger

Trial Balance





Question # 5 of 15 ( Start time: 07:32:45 PM ) Total Marks: 1

Which of the following is(are) TRUE about the sole trader form of business?

Select correct option:

A sole trader is liable to pay income tax on his/her earnings

Sole traders must have to prepare books of accounts by law

Sole traders must register the name of their business with the Registrar of

Companies

All of the given options





Question # 6 of 15 ( Start time: 07:33:29 PM ) Total Marks: 1

The allocation of the cost of a tangible plant asset to expense in the periods,

in which services are received from the asset, is termed as:

Select correct option:

Appreciation

Depreciation

Fluctuation

None of the given options





Question # 7 of 15 ( Start time: 07:34:48 PM ) Total Marks: 1

___________= Gross profit < Operating Expenses

Select correct option:

Net Profit

Gross Profit

Net Loss

Gross Loss





Question # 8 of 15 ( Start time: 07:36:14 PM ) Total Marks: 1

Particulars Rs. Opening written down value of machine 3,50,000 Cost of



machine purchased during the year 40,000 Depreciation during the year

13,000 Closing written down value (WDV) of the Machines ?

Select correct option:

Rs. 3, 77,000

Rs. 3, 90,000

Rs. 4, 12,000

Rs. 63,000





Question # 9 of 15 ( Start time: 07:37:37 PM ) Total Marks: 1

The main objective of financial reporting is to provide:

Select correct option:

Essential information to internal users of financial reports.

Useful economic information about the business to the external parties for

sound financial decisions.

Information to internal users about the cash position of the business.

Information to the Securities Exchange Commission (SEC).





Question # 11 of 15 ( Start time: 07:40:23 PM ) Total Marks: 1

Which one of the following is INCORRECT about closing Stock?

Select correct option:

It is added into current assets

It is deducted from Material available for use

It becomes opening stock of next year

It reduces the resources of business





Question # 12 of 15 ( Start time: 07:41:08 PM ) Total Marks: 1

A Bank Reconciliation Statement is prepared to:

Select correct option:

Ascertain that the difference between the Cash Book balance and the

Bank Statement balance is accounted for



Correct errors in the Cash Book or errors on the Bank Statement

Amend the balance of the Bank Statement of the firm

Amend the balance in the Cash Book of the firm





Question # 13 of 15 ( Start time: 07:41:36 PM ) Total Marks: 1

Fixed Asset (WDV) + ________ = Total assets Employed

Select correct option:

Total liabilities

Total assets

Current Assets

Working capital



Question # 14 of 15 ( Start time: 07:42:38 PM ) Total Marks: 1

Increase in an expense is recorded on the:

Select correct option:

Left or credit side of the account

Right or debit side of the account

Left or debit side of the account

Right or credit side of the account





Question # 15 of 15 ( Start time: 07:43:26 PM ) Total Marks: 1

What will be debited, if Mohsin commenced business with cash?

Select correct option:

Cash account

Capital account

Drawings account

Proprietor account

Question # 5 of 15 ( Start time: 07:53:02 PM )

Total Marks: 1

Which of the following is NOT correct?

Select correct option:

Decrease in Assets w ill be credit

Decrease in Liabilities w ill be debit

Decrease in Expenses w ill be debit

Decrease in Revenue w ill be debit



Question # 6 of 15 ( Start time: 07:53:51 PM )

Total Marks: 1

Money spent to acquire or upgrade physical assets is known as:

Select correct option:



Revenue Expense

Capital Expense

Administrative Expense

Operating Expense



Question # 7 of 15 ( Start time: 07:54:26 PM )

Total Marks: 1

A Bank Reconciliation Statement is prepared to:

Select correct option:

Ascertain that the difference betw een the Cash Boo

Correct errors in the Cash Book or errors on the Ban

Amend the balance of the Bank Statement of the firm

Amend the balance in the Cash Book of the firm





Question # 8 of 15 ( Start time: 07:54:56 PM )

Total Marks: 1

Which of the following account is normally NOT exists in the balance sheet

of the manufacturing concern?

Select correct option:

Work in Process Inventory

Raw Materials Inventory

Merchandise Inventory

Finished Goods Inventory





Question # 9 of 15 ( Start time: 07:55:34 PM )

Total Marks: 1

If cost of sales is Rs. 95,000, income from sales Rs. 200,000 and operating

expenses Rs. 300,000. What will be net result?

Select correct option:

Rs. 1, 95,000 Losses

Rs. 1, 95,000 Profits

Rs 1, 05,000 Profits

Rs1, 05,000 Losses





Question # 10 of 15 ( Start time: 07:56:34 PM )

Total Marks: 1

Which of the following will be debited if shares issued against cash?

Select correct option:



Cash account

Share capital account

Share premium account

None of the given options





Question # 11 of 15 ( Start time: 07:57:12 PM )

Total Marks: 1

Which of the following is (are) type(s) of Public Limited Companies?

Select correct option:

Listed company

Non listed company

Private limited company

Both Listed Company and non listed company









Question # 12 of 15 ( Start time: 07:57:58 PM )

Total Marks: 1

When closing stock is given in trial balance, then it will effect:

Select correct option:

Trading account only

Balance sheet only

Ow ner's equity only

Both Trading account and Balance sheet



Question # 13 of 15 ( Start time: 07:58:41 PM )

Total Marks: 1

Which of the following is TRUE about the treatment of insurance paid in

advance Rs. 13,000?

Select correct option:

It w ill be treated as an other income in Profit & Loss A

It w ill be treated as a current liability in Balance Shee

It w ill be treated as an accrued expense in Balance S

It w ill be deducted fromconcerned expense in Tradin





Question # 14 of 15 ( Start time: 07:59:58 PM )

Total Marks: 1

Which one of the following is INCORRECT about closing Stock?

Select correct option:

It is added into current assets



It is deducted from Material available for use

It becomes opening stock of next year

It reduces the resources of business



Question # 15 of 15 ( Start time: 08:00:49 PM )

Total Marks: 1

Which of the following is/are the example/s of Intangible Asset?

Select correct option:

Copy rights

Good w ill

Patent rights

All of the given options



Question # 3 of 15 ( Start time: 08:11:26 PM ) Total Marks: 1

Cost of goods manufactured - opening work in process + ending work in

process =?

Select correct option:

Cost of goods sold

Prime cost

Conversion cost

Total factory cost



Question # 4 of 15 ( Start time: 08:12:32 PM ) Total Marks: 1

Consider the following data: Particulars Rs. Assets ? Owner's equity 35,000

Liabilities 90,000

Select correct option:

Rs. 35,000

Rs. 55,000

Rs. 1, 25,000

Rs. 1, 05,000



Which of the following will be debited if shares issued against cash?

Select correct option:

Cash account

Share capital account

Share premium account

None of the given options





Question # 6 of 15 ( Start time: 08:14:00 PM ) Total Marks: 1

Which of the following is a debit entry on the Bank Statement that might not

appear in the Cash Book?

Select correct option:

A standing order

An uncredited cheque

A credit transfer

An unpresented cheque





Question # 7 of 15 ( Start time: 08:14:56 PM ) Total Marks: 1

Fixed assets are also called:

Select correct option:

Depreciable assets

Current assets

Liquid assets

Floating assets





Question # 8 of 15 ( Start time: 08:15:29 PM ) Total Marks: 1

Which of the following is fiscal Year of Government of Pakistan?

Select correct option:

1st January to 31st December

1st June to 31st May

1st July to 30th June

1st October to 30th September





Quiz Start Time: 08:06 PM Time Left 86

sec(s)

Question # 9 of 15 ( Start time: 08:16:02 PM ) Total Marks: 1

Which of the following is/are inventory valuation method(s)?

Select correct option:



FIFO

LIFO

Weighted average

All of the given options





Question # 10 of 15 ( Start time: 08:16:22 PM ) Total Marks: 1

Which of the following is the example of current liability?

Select correct option:

Notes payable

Notes receivable

Accounts receivable

Prepaid expenses





Question # 11 of 15 ( Start time: 08:17:14 PM ) Total Marks: 1

Which transaction will cause the balance in Terry's Cash Book to be greater

than his Bank Statement balance?

Select correct option:

A cheque is drawn but not yet presented at the bank for payment

The bank has not notified Terry about a dishonored cheque

A credit transfer into Terry's Bank Account

A cheque payment of Rs.101 is recorded in the Cash Book as Rs.110





Question # 12 of 15 ( Start time: 08:18:33 PM ) Total Marks: 1

Partner’s current accounts are opened when their capital accounts are:

Select correct option:

Fixed

Fluctuating

Working Capital

Work in progress capital





Question # 13 of 15 ( Start time: 08:19:35 PM ) Total Marks: 1

Inventory is considered a current asset because it:

Select correct option:

Often reflects the most current trends and styles



Was purchased during the current year, usually

Will be converted into cash in the course of the company's operating

cycle

Can be returned to the supplier for a cash refund





Question # 14 of 15 ( Start time: 08:21:07 PM ) Total Marks: 1

What will be debited, if business purchased Furniture on cash?

Select correct option:

Furniture account

Cash account

Business account

Bank account



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