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# MGT101 Financial Accounting Quiz No 2 Solution and Discussion Spring 2014 Due Date: May 30, 2014

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MGT101 Financial Accounting Quiz No.02 will open on May 28, 2014 and the last date of taking quiz is "May 30, 2014"

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MGT101 Quiz No 2 | Date: May 30, 2014 : Time : 06 : 00 PM

1. If a business purchases machinery for Rs. 50,000 on 31st January 2008 having life for 10 years, this expense will be realized ________ under the concept of accrual accounting.

Only for the year 2008
Only for the last day of 10th year
Over 10 years
Nothing can be

2. The entry of raw material issued to production units is:

Debit: Raw material A/c Credit: Work in process A/c
Debit: Work in process A/c Credit: Finished goods A/c
Debit: Work in process A/c Credit: Factory overhead

3. 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

4. A company uses straight line method of depreciation for an item of equipment that cost Rs. 28,000, has salvage value of Rs. 3,000, and has a five year useful life. What will be the book value of asset at the end of third year?

Rs. 15,000
Rs. 10,000
Rs. 18,000

5. Another name of net income or positive financial return is:

Profit
Contribution
Margin Revenue
Credit

6. If debit side of a ledger is greater than credit side, the balance will be called as:

Debit Balance
Credit Balance
Excess Balance
None of the above

7. 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
Cash Account & Expense Account
Capital Account & Revenue Account
Capital Account & Expense Account

1. For the last day of 10th year only
5. Profit

8. BC 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
Rs. 25,000

9. Supervisor's salary and equipment repair cost are examples of:

Direct material cost
Direct labor cost
Finished goods cost

10. Working capital Rs. 20,000, Current liabilities Rs. 30,000 and fixed assets Rs. 100,000; calculate current assets?

Rs. 10,000
Rs. 50,000
Rs. 110,000
Rs. 120,000

11. What does single entry accounting mean?

It means to record debit only
It means to record one side of entry only
It means to record cash only
It means to record credit only

12. BC & Co. purchased office equipment on account. Which of the following accounts would be affected from this transaction? I) Assets II) Liabilities III) Expenses IV) Revenues
I and IV
II and III
I and II
III and IV

12. Generally Accepted Accounting Principles (GAAP) are necessary because financial statements

are publicly available
should be standardized
should be understandable
All of the above

13. At the end of accounting period a list of all ledger balances is prepared. This list is called _____________.

Journal
Ledger
Cash Book
Trial Balance

14. In the cost of goods sold statement, Cost of direct material consumed + Direct labor=?

Conversion cost
Prime cost Total
factory cost
Cost of goods manufactured

10. Rs. 50,000
11. It means to record one side of entry only
12. All of the above
13. Trial Balance

Please all students related this subject Share your online Quizzes here to help each other.thanks

Please share the question and their answers of this quiz if anyone has done.
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The process of transferring journal entry information to the ledger is called:

Journalizing

Posting

Balancing

Ananlyzing

2) Which one of the following accounts normally does NOT exist in the balance sheet of a manufacturing concern?

work in procs inverntory

merchandising inventory

finished good inventory

raw material inventory

3) Which one of the following cannot be classified as Revenue Income?

income from the sale of fixed assets

sale on cash

income from the sale of services

sales on credit

4) Budget is another name of __________ in Accounting.

guest strategy

life of assets

statement of cash flow

financial forecaset

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

6) ABC & Co. purchased a typewriter for Rs. 5,000 and paid by cheque. Which of the following accounts would be affected from this transaction?

I) Assets

II) Liabilities

III) Expenses

IV) Revenues

7)Net profit = Gross profit - _________

product cost

direct cost

deffered cost

operating cost

8) An amount of Rs. 8000 paid as wages for installation of a Machine should be debited to: Select correct option:

Machine a/c

Cash a/c

Depreciation a/c

9) If a business purchases machinery for Rs. 50,000 on 31st January 2008 having life for 10 years, this expense will be realized ________ under the concept of accrual accounting.

10)Assets are divided in which of the following categories in balance sheet.

Current assets, Fixed assets and deferred cost

current assets, Long term assets and fixed assets

11) Which of the following is/are inventory valuation method(s)?

Fifo

Lifo

Weighted

All of the given

12) If, Cost of machine = Rs.400, 000 Useful life = 5 years Residual value = Rs.25, 000 Sale price = Rs.40, 000 Rate of depreciation = 40% What will be the amount of depreciation charged on 3rd year using straight line method?

Exp

Income

Liability

Cost

13) Which of the following is an example of direct materials cost?

Production worker’s wages

Polish and finishing material for chair

A piece of wood for the production of chair

Depreciation expenses

14) Any Written evidence in support of a business transaction is called as

Cash

Voucher

Journal

Ledger

Here is my today's Quiz

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MGT101 2ND QUIZ 30.5.14

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