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# MGT101 Financial Accounting Online Quiz No. 01 Fall 2013 Solutions and Discussions Due Date : 22-11-2013

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MGT101 - Financial Accounting  Quiz No. 01  Fall 2013 will open on Nov 20, 2013 12:00 AM and due date of taking quiz is Nov 22, 2013 11:59 PM,

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Consider the following data: Particulars Rs. Assets ? Owner's equity 35,000 Liabilities 90,000
Rs. 35,000
Rs. 55,000
Rs. 1, 25,000

The totals of return inwards Journal (day book) are
credited to the trade receivables control account
debited to the trade receivable control account
credited to the trade payables control account

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. 25,000
The third party who owes money to the business is called:
Debtor
Creditor
stockholder

Which of the following voucher is used to record receipt of cash?
Journal Voucher
Payment Voucher
Nominal Voucher

The allocation of the cost of a tangible plant asset to expense in the periods, in which services are received from the asset, is termed as:
Appreciation
Fluctuation
None of the given options

Find out the missing value of an Accounting Equation with the help of given data: Furniture Rs. 90,000 Cash Rs.100, 000 Debtors Rs.10, 000 Other Assets Rs. 1,000 Owner’s equity Rs. 90, 000 Liaibilities ?
Rs. 201,000
Rs. 290, 000
Rs. 291, 000

From the given particulars, calculate the rate of depreciation under the fixed installment method of depreciation:
Cost of Asset = Rs. 2,000
Residual Value = Rs. 400
Useful Life = 4 years
20 % (Right Answer) 30% 25% 33%

Which of the following formula is used to calculate the cost of goods sold?
Cost of goods available for sale minus net purchases plus ending inventory
Beginning inventory plus net purchases plus freight in minus ending inventory (Right Answer)
Beginning inventory minus net purchases minus ending inventory
Beginning inventory minus ending inventory

The investment of Rs. 10,000 made by the owner in business will have an effect on which of the following accounts?
Cash Account & Capital Account (Right Answer)
Cash Account & Expense Account
Capital Account & Revenue Account
Capital Account & Expense Account

Goods sold to Mr. Naeem for Rs. 5,000 are wrongly recorded in sales journal at Rs. 500 and same amount is posted in Mr. Naeem’s account, this is an example of:
Compensating errors
Error of Commission
Error of Principle
Error of Original entry (Right Answer)

Which of the following is the first book to record a transaction?
Trial Balance
Trial Balance
Balance Sheet

Which of the following would NOT be considered as a component of 'cost' of stock?
Salaries of selling staff  (Right Answer)
Transportation inward costs
Import duties
Purchase price

Which of the following is (are) characteristic(s) of Bad Debt?
It is a definite loss to the business
It must be shown in Profit & loss account
No provision is necessary for it
All of the given options (Right Answer)

The difference between Management Accounting and Financial Accounting is that:
Financial accounting is used by managers to plan strategies in the area of company growth
Financial accounting is used by external investors to gain information about the company
Managerial accounting is used by the internal managers to plan for daily business activities
Both 2 and 3 (Right Answer)

If Current Assets Rs. 100,000, Current Liability Rs. 50,000 and Fixed Assets Rs. 2, 00,000. Calculate working capital.
Rs. 1, 00,000
Rs. 1, 50,000
Rs. 3, 00,000

Which of the following is NOT a revenue expenditure?
Petrol consumed in motor vehicles (Right Answer)
Cost of saleable goods

The Amount changed to deprecation goes on declining in:
Depreciation fixed method
Annuity method
Straight line depreciation method

If Cost of sales in Rs. 90,000, income from sales Rs. 200,000 and operating expenses Rs.100,000,. What will be net results?
Rs. 5,000 Losses
Rs. 1,95,000 Profits
Rs. 1,95,000 Losses

The main purpose of ______________ is to as certain true result of the business operation during particular period of time.
Cost Accounting
Managerial Accounting
Tax Accounting

Question # 1 of 20
What should be credited, if salary is paid to Sohail?
Sohail account
Salaries account
Cash account
Drawings account

Question # 2 of 20
Which of the following is NOT correct?
Decrease in Assets will be credit
Decrease in Liabilities will be debit
Decrease in Expenses will be debit
Decrease in Revenue will be debit

Question # 4 of 20
Which of the following is/are the example/s of Intangible Asset?
Copy rights
Good will
Patent rights
All of the given options

Question # 5 of 20
Which of the following is a FIRST product of accounting cycle?
Select correct option:
Voucher
General Journal
General Ledger
Financial Statements

Question # 6 of 20
What will be debited, if Mohsin commenced business with cash?
Cash account
Capital account
Drawings account
Proprietor account

Question # 7 of 20
Assets are divided in which of the following categories in balance sheet.
Current assets, Long term assets and capital assets
Current assets, Long term assets and fixed assets
Current assets, Quick assets and business debts
Current assets, Fixed assets and deferred cost

Question # 8 of 20
Find out the missing value of an Accounting Equation with the help of given data: Cash Rs.100, 000 Debtors Rs.10, 000 Other Assets Rs. 1,000 Owners equity Rs. 1, 000 Liabilities ?
Rs. 12,000
Rs. 11,000
Rs. 110,000
Rs. 111,000

Question # 9 of 20
What will be debited, if business purchased Vehicle on cash?
Vehicle account
Cash account
Bank account

Question # 10 of 20
Franchise rights, goodwill and patents are the examples of:
Liquid assets
Tangible assets
Intangible assets
Current assets

Question # 11 of 20
Consider the following data: Particulars Rs. Assets ? Owner's equity 35,000 Liabilities 90,000
Rs. 35,000
Rs. 55,000
Rs. 1, 25,000
Rs. 1, 05,000

Question # 12 of 20
What should be credited, if rent paid in cash?
Landlords account
Rent account
Cash account
Accounts receivable account

Question # 13 of 20
Consider the following data: Particulars Rs. Assets 75,500 Owner's equity ? Liabilities 40,200
Rs. 35,300
Rs. 55,000
Rs. 125,000
Rs. 115,700

Question # 14 of 20
Find out the missing value of an Accounting Equation with the help of given data: Total Assets Rs. 34,500 Accounts payable Rs. 1, 000 Other liabilities Rs. 11,500 Owners equity ?
Rs. 22,000
Rs.24, 000
Rs. 45,000
Rs. 46,000
Question # 15 of 20
Which of the following item is found in a Journal entry? (1) Date of each transaction (2) Rupee amount of each debit and credit (3) Explanation of each transaction
1 only
1 & 2 only
2 & 3 only
1, 2 & 3

Question # 16 of 20
Which one of the following will result in increase in revenues?
Purchased fixed asset
Payment to creditors
Return of goods, sold on credit

Question # 17 of 20
Amount generated from sales in a business is called:
Select correct option:
Income
Net Income
Gross Profit
Operating profit

Question # 18 of 20
The expenses which are NOT paid out of Gross Profit is classified as:
Direct Expenses
General Expenses
Financial Expenses
Selling Expenses

Question # 19 of 20
The process of transferring journal entry information to the ledger is called:
Journalizing
Posting
Balancing
Analyzing

Question # 20 of 20
Which of the following is NOT correct?
Decrease in Assets will be credit
Decrease in Liabilities will be credit
Decrease in Expenses will be credit
Decrease in Revenue will be debit

Right Options:

1-Cash account

2-Decrease in Expenses will be debit

3-All of the given options

4-Voucher

5-Cash account

6-Current assets, Fixed assets and deferred cost

7-Rs. 110,000

8-Vehicle account

9-Intangible assets

10-Rs. 1, 25,000

11-Cash account

12-Rs. 35,300

13-Rs. 22,000

14-1, 2 & 3

16-Income

17-Direct Expenses

18-Posting

19-Decrease in Liabilities will be credit

Find out the missing value of an Accounting Equation with the help of given data: Furniture Rs. 90,000 Cash Rs.100, 000 Debtors Rs.10, 000 Other Assets Rs. 1,000 Owners equity Rs. 90, 000 Liabilities?
Select correct option:

Rs. 201,000
Rs. 111, 000
Rs. 290, 000
Rs. 291, 000

The expenses which are NOT paid out of Gross Profit is classified as:
Select correct option

Direct Expenses

General Expenses
Financial Expenses
Selling Expenses
Question #��3��of 20
Which of the following is NOT a characteristic of Joint Stock Company?
Select correct option:

Separate Legal Entity
Limited Liability of shareholders
Easy formation
Common Seal
��
Question #��4��of 20
Any expense that gives benefit for a period of less than twelve months is called ________.
Select correct option:

Capital Expense
Revenue Expense
Revenue Receipt
Deferred Expense
��
Question #��5��of 20
The process of transferring journal entry information to the ledger is called:
Select correct option:

Journalizing
Posting
Balancing
Analyzing
Question #��6��of 20
Total assets - Total liabilities =?
Select correct option:

Owner��s Equity

Expenses
Retained earnings
Retained earnings
��
Question #��7��of 20
Net profit = Gross profit - _________
Select correct option:

Operating Expenses

Product Cost
Deferred Expenses
Direct Cost
��
Question #��8��of 20
Debit signifies:
Select correct option:

Increase in Asset account
Decrease in liability account
Decrease in capital account
All of the given options
��
Question #��9��of 20
The term "Debit" is drived from______________ language.
Select correct option:

Latin

English
French
Chinese
Question #��10��of 20
A book that keeps separate record for each account is known as:
Select correct option:

Trial Balance
Voucher
General Journal
General Ledger
��
Question #��11��of 20
Which one of the following is called the book of primary Entry?
Select correct option:

General Journal

General Ledger
Trial Balance
Profit and loss account
��
Question #��12��of 20
In an account if credit side > debit side, the balance is known as:
Select correct option:

Negative Balance

Debit Balance

Credit Balance

Positive Balance

Question # 13 of 20
Normally single entry book keeping is followed by the:
Select correct option:

Governments only
��
Question # 14 of 20
What will be debited, if business sold goods for Rs.10, 000 on credit?
Select correct option:

Cash account
Sales account
Accounts receivable account
Purchases account
��
Question # 15 of 20
An expenditure whose benefit is finished or enjoyed immediately is called:
Select correct option:

Expense

Liability
Cost
Income

What should be debited, if Sales made to Mahmood for cash?
Select correct option:

Cash account

Mahood account
Sales account
Purchases account

Which of the following is NOT a characteristic of Journal?
Select correct option:

Transactions are recorded in chronological order
Transaction is first recorded in Journal from Voucher
It is also called "The original book of entry"
None of the given options

Consider the following data: Particulars Rs. Assets 1,05,000 Owner's equity 70,000 Liabilities ?
Select correct option:

Rs. 35,000
Rs. 1, 75,000
Rs. 7, 35,000
Rs. 1, 05,000

Which of the following is Not a part of General Ledger?
Select correct option:

Activity Book
Purchase Return Book
Purchase Book
Sales Book

What will be debited, if business bought goods on credit from Mr. Ali?
Select correct option:

Purchases account
Mr. Ali account
Cash account
Sales account

Quiz # 01

FINANCIAL ACCOUNTING (MGT101)

Dear Students!

This is to inform that Quiz # 01 will be opened on November 20, 2013 and last date to attempt quiz will be November 22, 2013.

Instructions:

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• Quiz will be based on Multiple Choice Questions (MCQs). Covering video Lectures 1 to 9.
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Consider the following data: Particulars Rs. Assets ? Owner's equity 35,000 Liabilities 90,000
Rs. 35,000
Rs. 55,000
Rs. 1, 05,000

hello friends,

plz jab koi b quizz attempt krte ho tu plz use save b kiya krein aur sath ma reference b diya kre

book se. this all quizzs will be helpful for our mid term exams.

specially thanks tariq bro for our help

Here goes mine, verify all answers your self. I could not save all the options.

Total 20 questions

Select the most suitable equation which properly represents the derivation of fundamental Accounting Equation.
Assets = Owner’s Equity
Assets + Liabilities = Owner’s Equity
Cash = Assets
Assets – Liabilities = Owner’s Equity

Which of the following are recorded in Cash Book?
Receipts and payments

The proper classification of Suppliers account is:
Liabilites

When a customer purchases goods from business and makes a promise to pay the amount at certain future time period, he will be called as:
Liabilities

Which of the following is Not a part of General Ledger?

Amount generated from sales in a business is called:

Which of the following is Not an Asset Account?

__________ is the art of recording, classifying and summarizing the transactions and events of a business and interpreting the results thereof.

Find out the missing value of an Accounting Equation with the help of given data: Owner’s equity Rs. 22,500 Total Liabilities Rs. 80, 385 Cash Rs. 1,000 Bank Rs. 2,000 Debtors Rs. 500

Rs. 99,385 other assets

Which of the following is the example of Current Assert?
Building

Commercial Accounting is done through a system that is known as:
Double Entry system of Accounting

Outsider’s claim against the assets of the business is called:
Liability

Which of the following is used to calculate Gross Profit?

An amount of Rs. 8000 paid as wages for installation of a Machine should be debited to:

Normally single entry book keeping is followed by the:

Which of the following businesses have unlimited liability? I) Sole Proprietorship II) Partnership III) Joint Stock Company

I) and II)

A wrong entry on the debit side of the Cash Book would lead to:

The process of transferring journal entry information to the ledger is called:
Posting

Find out the Owner's equitt,apart of an Accounting Equation with the help of given data: Cash Rs. 22,500 Debtors Rs. 50,000 Total assets Rs. missing Accounts payable Rs. 30,000 Total liabilities+ owner equity Rs. missing

Net profit = Gross profit - _________

Juste  thanks for sharing

i will post today InshALLAH in the evening

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