MTH101 Latest Solved Quiz 19 July 2010

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MGT-101 LATEST QUIZES SOLVED

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Quiz Start Time: 10:21 AM
Time Left 89
sec(s)
Question # 1 of 15 (Start time: 10:21:10 AM ) Total Marks: 1
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
  

Quiz Start Time: 10:21 AM
Time Left 89
sec(s)
Question # 2 of 15 ( Start time: 10:22:24 AM ) Total Marks: 1
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:
Select correct option:

• Bank statement
  
• Income statement
  
• Financial statement
  
• Bank Reconciliation statement
  

Quiz Start Time: 10:21 AM
Time Left 89
sec(s)
Question # 3 of 15 ( Start time: 10:23:33 AM ) Total Marks: 1
When total liabilities are subtracted from total assets the remaining amount is
known as:
Select correct option:

• Equity or net assets
  
• Net income or net loss
  
• Total expenses
  
• Total revenue
  

Quiz Start Time: 10:21 AM
Time Left 88
sec(s)
Question # 4 of 15 ( Start time: 10:24:06 AM ) Total Marks: 1
Unfavorable Bank Balance means:
Select correct option:

• Credit balance in cash book
  
• Credit balance in pass book
  
• Debit balance in cash book
  
• All of the given options
  

Quiz Start Time: 10:21 AM
Time Left 89
sec(s)
Question # 5 of 15 ( Start time: 10:25:15 AM ) Total Marks: 1
Recovery of bad debts is regarded/treated as:
Select correct option:

• Revenue
  
• Expenses
  
• Asset
  
• Loss
  

Quiz Start Time: 10:21 AM
Time Left 89
sec(s)
Question # 6 of 15 ( Start time: 10:25:38 AM ) 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
  

Quiz Start Time: 10:21 AM
Time Left 88
sec(s)
Question # 7 of 15 ( Start time: 10:26:05 AM ) Total Marks: 1
Which of the following is (are) NOT shown in balance sheet of sole
proprietor?
Select correct option:

• Fixed assets
  
• Current liabilities
  
• Profit sharing ratio
  
• Long term assets
  

Quiz Start Time: 10:21 AM
Time Left 89
sec(s)
Question # 8 of 15 ( Start time: 10:26:42 AM ) Total Marks: 1
Which of the following is a FIRST product of accounting cycle?
Select correct option:

• Voucher
  
• General Journal
  
• General Ledger
  
• Financial Statements
  

Quiz Start Time: 10:21 AM
Time Left 89
sec(s)
Question # 9 of 15 ( Start time: 10:27:24 AM ) Total Marks: 1
Which of the following is shown on debit side of creditors control account?
Select correct option:

• Bills receivable
  
• Returns inward
  
• Discount received
  
• Credit purchases
  

Quiz Start Time: 10:21 AM
Time Left 89
sec(s)
Question # 10 of 15 ( Start time: 10:28:12 AM ) Total Marks: 1
Which of the following formula is used to calculate the cost of goods sold?
Select correct option:

• Cost of goods available for sale minus net purchases plus ending inventory
  
• Beginning inventory plus net purchases plus freight in minus ending inventory
  
• Beginning inventory minus net purchases minus ending inventory
  
• Beginning inventory minus ending inventory
  

Quiz Start Time: 10:21 AM
Time Left 89
sec(s)
Question # 11 of 15 ( Start time: 10:28:49 AM ) Total Marks: 1
Which of the following will be credited, if cash is drawn by Proprietor?
Select correct option:

• Proprietor’s drawing
  
• Proprietor’s cash
  
• Proprietor’s capital
  
• Proprietor’s income
  

Quiz Start Time: 10:21 AM
Time Left 88
sec(s)
Question # 12 of 15 ( Start time: 10:29:17 AM ) Total Marks: 1
If Current Assets Rs. 100,000, Current Liability Rs. 50,000 and Fixed Assets
Rs. 2, 00,000. Calculate working capital.
Select correct option:

• Rs. 50,000
  
• Rs. 1, 00,000
  
• Rs. 1, 50,000
  
• Rs. 3, 00,000
  

Quiz Start Time: 10:21 AM
Time Left 87
sec(s)
Question # 13 of 15 ( Start time: 10:30:20 AM ) Total Marks: 1
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?
Select correct option:

• A bank charges
  
• An error on the Bank Statement
  
• An uncredited deposit
  
• An unpresented cheque
  

Quiz Start Time: 10:21 AM
Time Left 88
sec(s)
Question # 14 of 15 ( Start time: 10:31:12 AM ) 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
  

Quiz Start Time: 10:21 AM
Time Left 89
sec(s)
Question # 15 of 15 ( Start time: 10:32:30 AM ) Total Marks: 1
The amount by which the seller agrees to reduce his or her price to the
customer is called:
Select correct option:

• Income
  
• Discount Allowed
  
• Discount Received
  
• Liability
  

Which of the following expenses are called financial expenses?
Select correct option:

• Payment of rent & Salary expense
  
• Markup on loan& Bank Charges
  
• Interest & advertisement expense
  
• Wages and Depreciation expense
  

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
  

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

• Cash account
  
• Furniture account
  
• Vehicle account
  
• Capital account
  

Bank Reconciliation Statement is prepared by:
Select correct option:

• Bankers
  
• Accountant of the business
  
• Statutory auditor
  
• Manger
  

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

• Journalizing
  [*]Posting
  
• Balancing
  
• Analyzing
  

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
  

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
  

Which of the following voucher is used to record receipt of cash?
Select correct option:

• Journal Voucher
  
• Receipt Voucher
  
• Payment Voucher
  
• Nominal Voucher
  

Which of the following is the example of current liability?
Select correct option:

• Notes payable
  
• Notes receivable
  
• Accounts receivable
  
• Prepaid expenses
  

If cost of sales is Rs. 60,000, income from sales is Rs. 95,000 and operating
expenses Rs. 25,000. Calculate net profit.
Select correct option:

• Rs. 10,000
  
• Rs. 35,000
  
• Rs. 55,000
  
• Rs. 60,000
  

Loss on the sale of plant and machinery should be written off against:
Select correct option:

• Sales premium account
  
• Depreciation fund account
  
• Sales account
  
• Plant and machinery
  

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
  

If rent receivable is given in adjustment, how it will be treated in financial
statements?
Select correct option:

• It will be treated as other income in profit and loss account only
  
• It will be treated as current asset in balance sheet only
  
• It will be treated as current liability in balance sheet only
  
• It will be treated as both current asset in balance sheet and other income in profit & loss account
  

Which of the following is TRUE about the treatment of insurance paid in
advance Rs. 13,000?
Select correct option:

• It will be treated as an other income in Profit & Loss Account
  
• It will be treated as a current liability in Balance Shee
  
• It will be treated as an accrued expense in Balance Sheet
  
• It will be deducted from concerned expense in Trading and Profit & Loss account
  

Quiz Start Time: 10:52 AM
Time Left 90
sec(s)
Question # 1 of 15 ( Start time: 10:52:20 AM ) Total Marks: 1
Cost of goods sold + ending finished goods – opening finished goods=?
Select correct option:

• Total factory cost
  
• Cost of goods manufactured
  
• Prime cost
  
• Conversion cost
  

Quiz Start Time: 10:52 AM
Time Left 89
sec(s)
Question # 2 of 15 ( Start time: 10:53:00 AM ) Total Marks: 1
Which of the following is NOT considered a part of financial statements?
Select correct option:

• General Journal
  
• Balance Sheet
  
• Profit and Loss account
  
• None of the given options
  

Quiz Start Time: 10:52 AM
Time Left 89
sec(s)
Question # 3 of 15 ( Start time: 10:53:48 AM ) Total Marks: 1
A financial statement that indicates the position of a business, on a particular
time (date) is known as:
Select correct option:

• A Cash Flow Statement
  
• A Retained Earnings Statement
  
• An income statement
  
• A Balance Sheet
  

Quiz Start Time: 10:52 AM
Time Left 89
sec(s)
Question # 4 of 15 ( Start time: 10:54:25 AM ) 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
  

Quiz Start Time: 10:52 AM
Time Left 89
sec(s)
Question # 5 of 15 ( Start time: 10:55:08 AM ) Total Marks: 1
The total of all costs incurred to convert raw material into finished goods is
known as:
Select correct option:

• Prime cost
  
• Conversion cost
  
• Sunk cost
  
• Opportunity cost
  

Quiz Start Time: 10:52 AM
Time Left 89
sec(s)
Question # 6 of 15 ( Start time: 10:55:54 AM ) Total Marks: 1
Which of the following is (are) item (s) of cost of goods sold statement?
Select correct option:

• 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
  

Quiz Start Time: 10:52 AM
Time Left 89
sec(s)
Question # 7 of 15 ( Start time: 10:56:27 AM ) Total Marks: 1
At the end of financial year a partner’s drawings are transferred to the:
Select correct option:

• Credit side of the partner’s capital account
  
• Credit side of the partner’s current account
  
• Debit side of partnership bank account
  
• Debit side of the partner’s current account
  

Quiz Start Time: 10:52 AM
Time Left 87
sec(s)
Question # 8 of 15 ( Start time: 10:58:00 AM ) Total Marks: 1
Which of the following is the example of current liability?
Select correct option:

• Notes payable
  
• Notes receivable
  
• Accounts receivable
  
• Prepaid expenses
  

Quiz Start Time: 10:52 AM
Time Left 89
sec(s)
Question # 9 of 15 ( Start time: 10:58:32 AM ) Total Marks: 1
Fixed Asset (WDV) + working capital =?
Select correct option:

• Total assets Employed
  
• Total liabilities
  
• Total assets
  
• Current Assets
  

Question # 10 of 15 ( Start time: 11:00:04 AM ) Total Marks: 1
___________= Gross profit < Operating Expenses
Select correct option:

• Net Profit
  
• Gross Profit
  
• Net Loss
  
• Gross Loss
  

Quiz Start Time: 10:52 AM
Time Left 89
sec(s)
Question # 11 of 15 ( Start time: 11:01:39 AM ) Total Marks: 1
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 # 12 of 15 ( Start time: 11:02:03 AM ) Total Marks: 1
Expense incurred for operating activities of the business in providing goods
and services is known as:
Select correct option:

• Revenue expense
  
• Capital expense
  
• Deferred expense
  
• Preliminary expense
  

Quiz Start Time: 10:52 AM
Time Left 89
sec(s)
Question # 13 of 15 ( Start time: 11:02:41 AM ) Total Marks: 1
(Amount of new provision + Amount of bad debts) < Amount of old
provision then the resulting figure will be shown at:
Select correct option:

• Debit side of Profit & Loss account
  
• Credit side of Profit & Loss account
  
• Asset side of Balance Sheet
  
• Liability side of Balance Sheet
  

Quiz Start Time: 10:52 AM
Time Left 89
sec(s)
Question # 14 of 15 ( Start time: 11:04:08 AM ) Total Marks: 1
Which of the following is Not a part of General Ledger?
Select correct option:

• Activity Book
  
• Purchase Return Book
  
• Purchase Book
  
• Sales Book
  

Quiz Start Time: 10:52 AM
Time Left 89
sec(s)
Question # 15 of 15 ( Start time: 11:04:30 AM ) Total Marks: 1
Following information are extracted from books of Mr. XYZ Particulars Rs.
Write off Bad debts (given in adjustments) 2,400 Sundry Debtors (given in
trial balance) 33,200 Provision is created on Debtors at 10% Identify the
Total amount which will deduct from Sundry debtors
Select correct option:

• Rs. 460
  
• Rs. 2,400
  
• Rs. 5,480
  
• Rs. 5,720
  

Quiz Start Time: 11:07 AM Time Left 87
sec(s)
Question # 1 of 15 ( Start time: 11:07:38 AM ) Total Marks: 1
Which of the following is an example of operating expense?
Select correct option:

• Purchasing operating equipment
  
• Purchasing cleaning services
  
• Purchasing an investment in another company
  
• Purchasing a computer for the accounting office
  

Quiz Start Time: 11:07 AM Time Left 84
sec(s)
Question # 2 of 15 ( Start time: 11:08:32 AM ) Total Marks: 1
The amount received; in excess of the face value of the shares is transferred
to which of the following?
Select correct option:

• Share premium account
  
• Share holder account
  
• Share capital account
  
• Right share
  

Question # 3 of 15 ( Start time: 11:09:50 AM ) Total Marks: 1
Which of the following would NOT be considered as a component of 'cost' of
stock?
Select correct option:

• Salaries of selling staff
  
• Transportation inward costs
  
• Import duties
  
• Purchase price
  

Quiz Start Time: 11:07 AM Time Left 87
sec(s)
Question # 4 of 15 ( Start time: 11:10:54 AM ) Total Marks: 1
Which of the following is NOT correct?
Select correct option:

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

Quiz Start Time: 11:07 AM Time Left 85
sec(s)
Question # 5 of 15 ( Start time: 11:11:37 AM ) Total Marks: 1
A financial statement that indicates the position of a business, on a particular
time (date) is known as:
Select correct option:

• A Cash Flow Statement
  
• A Retained Earnings Statement
  
• An income statement
  
• A Balance Sheet
  

Question # 6 of 15 ( Start time: 11:12:15 AM ) Total Marks: 1
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?
Select correct option:

• A bank charges
  
• An error on the Bank Statement
  
• An uncredited deposit
  
• An unpresented cheque
  

Quiz Start Time: 11:07 AM Time Left 87
sec(s)
Question # 7 of 15 ( Start time: 11:13:03 AM ) Total Marks: 1
Particulars Rs. Opening written down value of machine 4,10,000 Cost of
machine purchased during the year 50,000 Depreciation during the year
20,000 closing written down value (WDV) of the Machines ?
Select correct option:

• Rs. 4, 40,000
  
• Rs. 4, 30,000
  
• Rs. 4, 80,000
  
• Rs. 70,000
  

Quiz Start Time: 11:07 AM Time Left 86
sec(s)
Question # 8 of 15 ( Start time: 11:13:59 AM ) Total Marks: 1
The amount of owner's equity in a business is affected by which of the
following?
Select correct option:

• The profitability of the business
  
• Investments made in the business by the owner
  
• The amount of dividends paid to stockholders
  
• All of the given options
  

Quiz Start Time: 11:07 AM Time Left 87
sec(s)
Question # 9 of 15 ( Start time: 11:15:05 AM ) Total Marks: 1
Which of the following is TRUE about a merchandising company?
Select correct option:

• A merchandising company's business is to buy and sell products.
  
• A merchandising company must use the perpetual system to account for merchandising inventory.
  
• A merchandising company's business is to provide services.
  
• None of the given options
  

Quiz Start Time: 11:07 AM Time Left 87
sec(s)
Question # 10 of 15 ( Start time: 11:16:23 AM ) Total Marks: 1
What types of changes (is) are made at the admission of partner in
partnership?
Select correct option:

• Assets of old business will be revalued
  
• Liabilities of old business will be revalued
  
• Goodwill of business will be revalued
  
• All of the given options
  

Quiz Start Time: 11:07 AM Time Left 88
sec(s)
Question # 11 of 15 ( Start time: 11:17:41 AM ) Total Marks: 1
What should be debited, if Sales made to Mahmood for cash?
Select correct option:

• Cash account
  
• Mahood account
  
• Sales account
  
• Purchases account
  

Question # 13 of 15 ( Start time: 11:19:25 AM ) Total Marks: 1
An amount of Rs. 200 received from Mr. "P" but credited to Mr. "Q" would
affect:
Select correct option:

• Accounts of P & Q
  
• Only Cash Account
  
• Only P’s account
  
• Only Q’s account
  

Quiz Start Time: 11:07 AM Time Left 87
sec(s)
Question # 14 of 15 ( Start time: 11:20:47 AM ) 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
  

Quiz Start Time: 11:07 AM Time Left 87
sec(s)
Question # 15 of 15 ( Start time: 11:22:04 AM ) Total Marks: 1
Which of the following assets is most likely to appreciate rather than
depreciate?
Select correct option:

• [*]Land
  
• Motor vehicles
  
• Plant and machinery
  
• Fixtures and fittings