vuZs

Virtual University: Study Resource Bank

You are here: Home MCQs MGT101: Financial Accounting MCQs Financial Accounting - MGT101 Solved MCQs Collections from Online Quizzes (II)
Like this Page? Press  
 

Virtual University MCQs BANK - MCQs Collection from Online Quizzes

Financial Accounting - MGT101 Solved MCQs Collections from Online Quizzes (II)

Which of the following is (are) item (s) of cost of goods sold statement? 
Purchase of raw material 
Any tax/freight paid on purchases 
 Any expense incurred on carriage/transportation of raw material purchased items 
 All of the given options (Right Answer) 

Question No. 2 of 20 
 
Which of the following voucher is used to record transactions that do not affect bank & cash? 
Journal Voucher (Right Answer) 
Receipt Voucher 
 Payment Voucher 
 Nominal Voucher 

Question No. 3 of 20 
 
Rs. 400 
 Rs. 2,500 
 Rs. 2,900 (Right Answer) 
 Rs.20, 900 

Question No. 4 of 20 
 
What would conversion costs if costs of raw materials, direct labor costs, and manufacturing overhead costs Rs.80,000, Rs.50,000, and Rs.60,000, respectively? 
Rs.130, 000 
Rs.110, 000 (Right Answer) 
 Rs.140, 000 
 Rs.190, 000 

Question No. 5 of 20 
 
A form that allows individuals to compare their personal bank account records to the bank's records of the individual's account balance in order to uncover any possible discrepancies is known as: 
Bank statement 
Income statement 
Financial statement 
 Bank Reconciliation statement (Right Answer) 

Question No. 6 of 20 
 
Cash and other resources that are expected to turn to cash or to be used up within one year of the balance sheet date are called: 
Current liability 
Current assets (Right Answer) 
 Fixed assets 
Long-term assets 

Question No. 7 of 20 
 
An accounting system is used by a business to: 
Analyze transactions 
Handle routine bookkeeping tasks 
 Structure information 
All of the given options (Right Answer) 

Question No. 8 of 20 
 
Particulars Rs. Opening written down value of machine 3,75,000 Cost of machine 50,000 Depreciation during the year 11,500 Closing written down value (WDV) of the Machines ? 
Rs. 4,13,500 (Right Answer) 
Rs. 4, 25,000 
Rs. 3, 36,500 
Rs. 61,500 

Question No. 9 of 20 
 
Furniture account (Right Answer) 
Cash account 
Business account 
Bank account 
Expenditure incurred in acquiring the patent right for the business is an example of: 
Revenue expenditure (Right Answer) 
Capital expenditure 
Deferred revenue expenditure 
Administrative expenditure 

Question No. 11 of 20 
 
Total assets - Total liabilities =? 
Owner’s Equity (Right Answer) 
Expenses 
Retained earnings 
Net profit 

Question No. 12 of 20 
 
What will be debited, if business bought goods on credit from Mr. Ali? 
Purchases account (Right Answer) 
Mr. Ali account 
Cash account 
Sales account 

Question No. 13 of 20 
 
Prepaid rent given in the Trial Balance will be treated as a (an): 
Asset 
Liability 
Revenue (Right Answer) 
Deferred expense 

Question No. 14 of 20 
 
A business event which can be measured in terms of money and must be recorded in books of accounts is called: 
 Condition 
Transaction (Right Answer) 
 Information 
Record 

Question No. 15 of 20 
 
Which one of the following is NOT a feature of sole proprietorship business. 
Easy Formation 
Easy Dissolution 
Unlimited Liability 
Separate Legal Entity (Right Answer) 

Question No. 16 of 20 
 
In which of the following statement opening stock is shown? 
Profit and loss account 
Balance sheet (Right Answer) 
Cash flow statement 
Owner’s equity 

Question No. 17 of 20 
 
 The profitability of its business operations for a period of time 
Its financial position at the end of an accounting period 
 Its cash receipts and cash payments during an accounting period  (Not Sure) 
 None of the given options 

Question No. 18 of 20 
 
Which of the following is (are) example(s) of non distributable profit? 
General reserve 
Accumulated profit and loss (credit balance) 
Revaluation reserves 
None of the given options (Not sure) 

Question No. 19 of 20 
 
Which of the following Organization converts raw material into finished goods? 
Trading concern 
Manufacturing concern (Right Answer) 
Merchandising concern 
Service concern 

In firms cash flow statements, which of the following would appear as a cash outflow? 
The payments for share in a company whose shares are treated on a stock exchange 
A decrease in trade debtors over the course of an accounting period 
Money received as a result of issuing new shares 
Money received as result of selling fixed assets (Not sure)  

Which of the following particular/s is/are included in receipt voucher?  
 Name of organization  
 Bank receipt  
 Date  
 All of the given options (Right Answer) 

Which of the following assets is most likely to appreciate rather than depreciate?  
 Land (Right Answer) 
 Motor vehicles 
 Plant and machinery  
 Fixtures and fittings 

Which of the following item needs to be entered in the Cash Book in order to bring it in line with the entries on the Bank Statement?  
 A bank charges (Right Answer) 
 An error on the Bank Statement 
 An uncredited deposit 
 An unpresented cheque 

Wages paid to laborers working in the manufacturing department is treated as an expense of:  
 Cost of goods sold (Right Answer) 
 Administrative expenses 
 Selling expenses 
 Marketing expenses 

Bad debts written off (given in adjustment) always affect the:  
 Debtors account (Right Answer) 
 Creditors account 
 Cash account  
 Capital account 

Carriage paid Rs. 50 for the newly purchased machinery if debited to carriage account will effect:  
 Only carriage account 
 Only machinery account (Right Answer) 
 Both carriage and machinery account 
 None of the given options 

Cost of goods manufactured - opening work in process + ending work in process =?  
 Cost of goods sold 
 Prime cost  
 Conversion cost  
 Total factory cost (Right Answer) 

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?  
 Rs. 1, 95,000 Losses (Right Answer) 
 Rs. 1, 95,000 Profits 
 Rs 1, 05,000 Profits 
 Rs1, 05,000 Losses 

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  
 III. IV. I. II.  
 I. II. III. IV.  
 III. II. IV. I.  (Right Answer) 
 III. II. I. IV.  

All of the below items are directly recorded by bank without intimating the business until the end of month, EXCEPT: 
Bank Charges 
Interest on Overdraft 
Un-presented Cheques (Right Answer) 
Direct Receipts 

Which of the following is Not an Asset Account? 
Plant & Machinery 
Loan to XYZ co. 
Cash at Bank 
Loan from ABC co. (Right Answer) 

A balance of pass book written in brackets ( ) by the bank is known as: 
Favorable balance for customer(Right Answer) 
Unfavorable balance for bank 
Unfavorable balance for customer 
None of the above 

Which of the following is an example of direct materials cost? 
Production worker’s wages(Right Answer) 
Depreciation expenses 
A piece of wood for the production of chair 
Polish and finishing material for chair 
  other are non direct or factroy 

Question No. 7 of 20  
Expenditure incurred in acquiring the patent right for the business is an example of: 
Revenue expenditure 
Capital expenditure(Right Answer) 
Deferred revenue expenditure 
Administrative expenditure 

Cash book is a part of _______ . 
Voucher 
General Journal 
General Ledger (Right Answer) 
Trial Balance 

What will be the entry of disposal of an asset at cost price? 
Debit Fixed Asset Disposal and Credit Fixed Asset Cost 
Debit Accumulated Dep. and Credit Fixed Asset Disposal 
Debit Cash / Bank and Credit Fixed Asset Disposal 
None of the given options 

ABC co. has a capital of Rs. 100,000, Long Term Liabilities Rs. 50,000, net profit during the year Rs. 15,000 and the amount of total liabilities is Rs 175,000. What will be the amount of Current Liabilities? 
Rs. 20,000 
Rs. 150,000 
Rs. 10,000 (Right Answer) 
Rs. 25,000 

A manufacturing concern has Raw material of worth Rs. 100,000, Direct Labor Rs. 75,000 and Factory Overhead Rs. 50,000. The amount of Conversion cost will be: 
Rs. 150,000 
Rs. 175,000 
Rs. 125,000 (Right Answer) 
Rs. 225,000 

The Sales Returns Day Book would include: 
Goods bought on credit 
Fixed Assets bought that are inappropriate for business 
Stock that customers have returned (Right Answer) 
Goods bought on credit that are returned to the original supplier

Total Sales are calculated by adding: 
Cash sales and cash received from debtors 
Credit sales and cash received from debtors 
Cash sales and credit sales (Right Answer) 
Cash ales and credit purchases 

In the cost of goods sold statement, the sum of labor cost and the factory over head is known as: 
Conversion cost (Right Answer) 
Prime cost 
Total factory cost 
Cost of goods manufactured 

Outsider’s claim against the assets of the business is called: 
Capital 
Liability (Right Answer) 
Expense 
Income 

Which of the following particular/s is/are included in payment voucher? 
Name of organization 
Cash payment 
Date 
All of the given options (Right Answer) 

Goods returned by Mr. B amount to Rs. 4,000. The entry in the books will be: 
Mr. B is Debit Sales Returns is Credit (Right Answer) 
Sales Returns is Debit Mr. B is Credit 
Mr. B is Debit Accounts Receivable Credit 
Purchases Return Debit Mr. B is Credit 

A form that allows individuals to compare their personal bank account records to the bank's records of the individual's account balance in order to uncover any possible discrepancies is known as: 
Bank statement 
Income statement 
Financial statement 
Bank Reconciliation statement (Right Answer) 

Following information is available relating to a manufacturing concern: Cost of Goods Sold Rs. 245,000 Purchases Rs. 250,000 Freight Inward Rs. 5,000 Closing Stock Rs. 25,000 What will be the amount of Opening Stock? 
Rs. 15,000 (Right Answer) 
Rs. 10,000 
Rs. 25,000 
Rs. 20,000

Add comment


Security code
Refresh

You are here: Home MCQs MGT101: Financial Accounting MCQs Financial Accounting - MGT101 Solved MCQs Collections from Online Quizzes (II)