Latest Activity In Study Groups

Join Your Study Groups

VU Past Papers, MCQs and More

We non-commercial site working hard since 2009 to facilitate learning Read More. We can't keep up without your support. Donate.

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

 Reference

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:

 Rs.1,500

 Rs.4,500

 Rs.7,000

 Rs.20,500

 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

 

http://www.bcvaz.in/financial_accounting/objective_type/branch_acco...

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

 Solution:

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

Reference

Views: 90

© 2021   Created by + M.Tariq Malik.   Powered by

Promote Us  |  Report an Issue  |  Privacy Policy  |  Terms of Service