MGT101 Current Quiz

Question # 1 of 20

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 ?

a) Rs. 2, 25,000

b) Rs. 2, 50,000

c) Rs. 2, 75,000

d) Rs. 75,000

Question # 2 of 20

Which of the following is (are) shown as notes to the accounts.

a) Accounting polices of the business

b) Nature of the business of the company

c) Details and explanations of items given in Balance Sheet

d) All of the given options

Question # 3 of 20

Budget is a plan of income, expenses & other financial operations for:

a) Current period

b) Future period

c) Past period

d) None of the given options

Question # 4 of 20

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

a) Vehicle account

b) Cash account

c) Business account

d) Bank account

Question # 5 of 20

Which of the following is a debit entry on the Bank Statement that might not appear in the Cash Book?

a) A standing order

b) An uncredited cheque

c) A credit transfer

d) A credit transfer

Question # 6 of 20

Which of the following document(s) define the scope of the company’s activities?

a) Memorandum of Association

b) Articles of Association

c) Prospectus

d) Statutory Declaration

Question # 7 of 20

What will be the entry of disposal of an asset at cost price?

a) Debit Fixed Asset Disposal and Credit Fixed Asset Cost

b) Debit Accumulated Dep. and Credit Fixed Asset Disposal

c) Debit Accumulated Dep. and Credit Fixed Asset Disposal

d) None of the given options

Question # 8 of 20

The head of board of directors of Private limited Companies is called:

a) Chief Executive

b) Governor

c) Chief Minister

d) President

Question # 9 of 20

Which of the following would NOT be considered as a component of 'cost' of stock?

a) Salaries of selling staff

b) Transportation inward costs

c) Import duties

d) Purchase price

Question # 10 of 20

Which one of the following is NOT true about Capital Expenditure?

a) They create future benefits

b) They are incurred to acquire fixed assets

c) They improve the financial position of the business

d) They reduce the profit of the concern

Question # 11 of 20

Which of the following is NOT cash inflow?

a) Purchase of fixed asset

b) Sale of fixed asset

c) Issue of debentures

d) Cash from business operation

Question # 12 of 20

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?

a) Rs. 41,000

b) Rs. 51,000

c) Rs. 61,000

d) Rs. 65,000

Question # 13 of 20

The Joint Stock Company is formed under the Companies Ordinance:

a) 1984

b) 1962

c) 1971

d) 1965

Question # 14 of 20

The main objective of financial reporting is to provide:

a) Essential information to internal users of financial reports.

b) Useful economic information about the business to the external parties for sound financial decisions.

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

d) Information to the Securities Exchange Commission (SEC).

Question # 15 of 20

In which situation(s) Partnership is dissolved?

a) In case of death of partner

b) At the admission of new partner

c) If any partner resigned from partnership

d) All of the given options

Question # 16 of 20

A financial statement that indicates the position of a business, on a particular time (date) is known as:

a) A Cash Flow Statement

b) A Retained Earnings Statement

c) An income statement

d) A Balance Sheet

Question # 17 of 20

In an account if credit side > debit side, the balance is known as:

a) Negative Balance

b) Debit Balance

c) Credit Balance

d) Positive Balance

Question # 18 of 20

Cost of goods sold + ending finished goods – opening finished goods=?

a) Total factory cost

b) Cost of goods manufactured

c) Prime cost

d) Conversion cost

Question # 19 of 20

While adjusting the cash balance of cash book, which of the following is NOT taken into account.

a) Mistakes in the cash book

b) Interest credited in the pass book but not entered in cash book

c) Interest debited in the pass book but not entered in cash book

d) Mistakes in the statement of owner’s equity

Question # 20 of 20

Which of the following account(s) would be decreased with a debit?

a) Capital

b) Retained Earnings

c) Revenues

d) All of the given options