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FIN611 Virtual University MCQs BANK - MCQs Collection from Online Quizzes - FIN611 Quiz Solved With Reference

While preparing the profit and loss account, advertisement expenses are allocated and apportioned to the different departments on the basis of:

Select correct option:

 Sales by each department

 Number of employees

 Purchase of goods by each department

Area / Floor space occupied


Which of the following account will be debited for distribution of profit to partners?

Select correct option:

 Profit and loss account

 Profit and loss appropriation account

 Partner’s capital accounts

 Cash account


Mr. Asghar introduces the opening capital of Rs. 6,500 in the business and further capital of Rs. 3,000 during the year. His capital at the end of the year is Rs.11,000. What will be the profit for Mr. Asghar?

Select correct option:





 Solution: Opening capital +Added more capital – Closing capital = Profit

                     6500                 +   3000                        -11000                 = 1500

Which of the following is/are NOT allocated and apportioned on the basis of “Number of employees” by each department?

Select correct option:

 Rent expense

 Bad debts provision

 Depreciation expense

 All of the given options

Rationale: Only those expenses are apportioned on the basis of “Number of employees”. Which are related to employees welfare e.g pension etc.


The debit side of the Branch stock account indicates:

Select correct option:

 Inflow of cash

 Outflow of cash

 Inflow of stock

 Outflow of stock

Income & Expenditure account shows subscriptions for the year at Rs. 3,000. It is further given that Subscriptions to the extent of Rs. 500 were outstanding for the current year, the amount to be shown on the debit side of the Receipts & Payments Account will be:

Select correct option:

 Rs. 2,500

 Rs. 3,000

 Rs. 3,500

 Rs. 500


Subscription            = 3000

Less: Outstanding   =   500

                                = 2500

Which of the following is used to extract the opening balance of fixed assets in single entry system?

Select correct option:

 Debtors account

 Cash account

 Statement of affairs

 Assets account

Which of the following is used to extract the opening balance of loans in single entry system?

Select correct option:

 Creditors account

 Cash account

 Debtors account

 Statement of affairs


Which of the following account will be credited in the books of head, when it allocates a part of its own expense to the branch?

Select correct option:

 Branch Account

 Expense Account

 Profit And Loss Account

 Cash account

 Rationale: Expenses will be transferred to branch so will be reduced (credited).

Which of the following expense can NOT be allocated and apportioned by each department separately?

Select correct option:

 Discount allowed

 Group insurance

 General expenses

 Wages and salaries


Which one of the following items will NOT appear in the Balance Sheet of a club?

Select correct option:

 Subscriptions received in advance

 Donations received in advance

 Entrance fee paid by the member

 Locker’s rent accrued


In the books of head office, the cash sales are recorded in the credit side of:

Select correct option:

 Branch sales account

 Branch stock account

 Head office sales account

 Head office stock account


Under Single-entry system, if the capital at the end of the year is less than the capital at the beginning of the year, the difference will represent:

Select correct option:

 Net Profit

 Net loss

 Gross loss

 Gross profit


The branch which maintains its own books of accounts is called:

Select correct option:

 Retail branch

 Wholesale branch

 Independent branch

 Dependent branch


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