MGT101 Quizzes

Question # 1
Which one of the following statement is CORRECT about Long term liabilities?
Select correct option:

These are due within one year
These are short-term loans
Consist of all bank debts payable more than 12 months
In working capital, these are deducted from assets

Question # 2
Outsider�s claim against the assets of the business is called:
Select correct option:

Capital
Liability
Expense
Income

Question # 3
Which of the following is NOT correct?
Select correct option:

Decrease in Assets will be debit
Decrease in Liabilities will be debit
Decrease in Expenses will be credit
Decrease in Revenue will be debit

Question # 4
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 # 5
Partnership means a lawful business owned by at least:
Select correct option:

Two or more persons
Five or more persons
Seven or more persons
Nine or more persons

Question # 6
Which one of the following will result in increase in revenues?
Select correct option:

Purchased fixed asset
Received discount
Payment to creditors
Return of goods, sold on credit

Question # 7
What will be debited, if business purchased Furniture on cash?
Select correct option:

Furniture account
Cash account
Business account
Bank account

Question # 8
All the statements are correct about Journal voucher EXCEPT:
Select correct option:

Financial data is picked only from journal vouchers to Journal
These are used to record all transaction other than cash & bank
These are used to make corrections or adjustments to previous Receipt
Format of journal voucher is different from other vouchers

Question # 9
Which of the following is the example of Current Assert?
Select correct option:

Land
Building
Stock
Capital

Question # 10
What will be debited, if business purchased Vehicle on cash?
Select correct option:

Vehicle account
Cash account
Business account
Bank account

Question # 11
The investment of Rs. 10,000 made by the owner in business will have an effect on which of the following accounts?
Select correct option:

Cash Account & Capital Account
Cash Account & Expense Account
Capital Account & Revenue Account
Capital Account & Expense Account

Question # 12
What should be credited, if rent paid in cash?
Select correct option:

Landlord�s account
Rent account
Cash account
Accounts receivable account

Question # 13
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 # 14
An expenditure whose benefit is finished or enjoyed immediately is called:
Select correct option:

Expense
Liability
Cost
Income

Question # 15
__________ is the art of recording, classifying and summarizing the transactions and events of a business and interpreting the results thereof.
Select correct option:

Book-keeping
Accounting
Management
Auditing

Question # 1
If cost of sales is Rs. 95,000, income from sales Rs. 200,000 and operating expenses Rs. 100,000. What will gross profit?
Select correct option:

Rs. 5,000
Rs. 95,000
Rs. 1, 00,000
Rs.1, 05,000

Question # 2 of 15 ( Start time: 12:26:05 PM ) Total Marks: 1
Find out the missing value of an Accounting Equation with the help of given data: Bank Rs. 22,500 Other assets Rs. 1,000 Creditors Rs. 8, 385 Other liabilities Rs. 9,000 Owner�s equity ?
Select correct option:

Rs. 6,115
Rs. 31,885
Rs. 17,385
Rs. 14,115

Question # 3
What will be debited, If Mr. �A� started business with Rs. 2, 00,000.
Select correct option:

Capital account
Cash account
Mr. A�s account
Business account

Question # 4
What will be debited, if Mohsin commenced business with cash?
Select correct option:

Cash account
Capital account
Drawings account
Proprietor account

Question # 5
In which of the following statement/s closing stock is/are shown?
Select correct option:

Profit and loss account
Balance sheet
Income statement
All of the given options

Question # 6
Which of the following account balance/s is/are shown on credit side of Trial Balance? (It is assumed that all account balances are shown on normal balance)
Select correct option:

Capital account
Sundry creditors account
Accounts payable account
All of the given options

Question # 7
Which of the following is / are the particular/s of a cash book? (1) Date of transaction (2) Account title (3) Amount
Select correct option:

1 only
1 & 2 only
1 & 3 only
1, 2 & 3

Question # 8
An accounting system is used by a business to:
Select correct option:

Analyze transactions
Handle routine bookkeeping tasks
Structure information
All of the given options

Question # 9
A Balance Sheet discloses the financial position of a firm:
Select correct option:

For a certain given period
At a particular point of time
After the fixed date
None of the given options

Question # 10
What is the nature of a revenue account?
Select correct option:

Asset
Debit
Credit
Expense

Question # 11
If a business purchases machinery for Rs. 50,000 on 31st January 2008 having life for 10 years, this expense will be realized ________ under the concept of accrual accounting.
Select correct option:

Only for the year 2008
Only for the last day of 10th year
Over 10 years
Nothing can be said about it

Question # 12
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

Question # 13
Total assets - Total liabilities =?
Select correct option:

Owner�s Equity
Expenses
Retained earnings
Net profit

Question # 14
If Salaries Rs. 12, 000, Rent Rs. 5,000, Gross profit Rs. 58,000 and Discount received Rs. 10, 000. What will be the amount of Net Profit?
Select correct option:

Rs. 41,000
Rs. 51,000
Rs. 61,000
Rs. 65,000

Question # 15
__________ is the art of recording, classifying and summarizing the transactions and events of a business and interpreting the results thereof.
Select correct option:

Book-keeping
Accounting
Management
Auditing

Question # 1
Outsider�s claim against the assets of the business is called:
Select correct option:

Capital
Liability
Expense
Income

Question # 2
which of the following statement is TRUE about the positive working capital of company.
Select correct option:

It shows sound position of company
It shows that company has current asset to meet current liability
It shows that current assets are greater than current liability
All of the given options

Question # 3
A book that keeps separate record for each account is known as:
Select correct option:

Trial Balance
Voucher
General Journal
General Ledger

Question # 4
Find out the missing value of an Accounting Equation with the help of given data: Total Assets Rs. 34,500 Accounts payable Rs. 1, 000 Other liabilities Rs. 11,500 Owner�s equity ?
Select correct option:

Rs. 22,000
Rs.24, 000
Rs. 45,000
Rs. 46,000

Question # 5
In which of the following statement/s closing stock is/are shown?
Select correct option:

Profit and loss account
Balance sheet
Income statement
All of the given options

Question # 6
If Gross profit Rs.16,500 and Cost of goods sold Rs.183,500, what will be the amount of Net Sales?
Select correct option:

Rs. 183, 500
Rs. 167, 000
Rs. 200, 000
Rs. 230, 000

Question # 7
If cost of sales is Rs. 90,000, income from sales Rs. 200,000 and operating expenses Rs. 100,000. What will be net result?
Select correct option:

Rs. 5,000 Losses
Rs.10, 000 Profits
Rs 1, 95,000 Profits
Rs 1, 95,000 Losses

Question # 8
The process of transferring journal entry information to the ledger is called:
Select correct option:

Journalizing
Posting
Balancing
Analyzing

Question # 9
Which of the following particular/s is/are included in receipt voucher?
Select correct option:

Name of organization
Bank receipt
Date
All of the given options

Question # 10
If a business purchases machinery for Rs. 50,000 on 31st January 2008 having life for 10 years, this expense will be realized ________ under the concept of accrual accounting.
Select correct option:

Only for the year 2008
Only for the last day of 10th year
Over 10 years
Nothing can be said about it

Question # 11
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 # 12
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 # 13
If cost of sales is Rs. 95,000, income from sales Rs. 200,000 and operating expenses Rs. 100,000. What will gross profit?
Select correct option:

Rs. 5,000
Rs. 95,000
Rs. 1, 00,000
Rs.1, 05,000

Question # 15
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