vu mgt101 Final Term - Quiz No.1
vu mgt101 Financial Accounting Quiz
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Question 1: Which type of inventory system is updated inventory system
AVERAGE
FIFO
LIFO
Average
Question 2: Consider the following:
Eighty units were sold, what is the value of the ending inventory using the FIFO method of inventory costing?
| Beginning inventory | 10 units @ Rs. 10 per unit |
| First purchase | 35 units @ Rs. 11 per unit |
| Second purchase | 40 units @ Rs. 12 per unit |
| Third purchase | 20 units @ Rs. 13 per unit |
Eighty units were sold, what is the value of the ending inventory using the FIFO method of inventory costing?
Rs.260
Rs.232
Rs.284
Rs.320
Question 3: For every debit there must be a credit with an equal amount. This is also called as:
Separate Entity Concept
Single Entry Book-Keeping
Matching Concept
Dual Aspect Concept
Question 4: On which of the following system control accounts are based?
Double entry book keeping system
Single entry book keeping system
Cash accounting system
All of the given options
Question 5: An asset that is not physical in nature is called __________
intangible asset
liquid assets
current asset
Question 6: Which one of the following is CORRECT about closing stock?
It appears in the asset side of the balance sheet
it decrease the value of cost of goods sold
It becomes the opening stock of the next year
All of the above
Question 7: Which of the following items of balance sheet are useful in evaluating a company's liquidity?
Current assets and other assets
Current liabilities and current assets
Current liabilities and plant and equipment
Non current liabilities and other assets
Question 8: Commercial Accounting is done through a system that is known as __________.
Single entry system of Accounting
Accrual system of Accounting
Double Entry system of Accounting
Cash system of Accounting
Question 9: If the working capital and the current assets of company XYZ are Rs. 5,000 and Rs.15,000 respectively, calculate the current liabilities.
Rs. 5,000
Rs. 10,000
Rs. 15,000
Rs. 20,000
Question 10: In a partnership of Mr. A and Mr. B, the share of profit of Mr. A is Rs.75,375 and the share of profit of Mr. B is Rs. 25,125. What will be the ratio of their share?
0.043055556
0.085416667
0.126388889
0.125694444
Question 11: Which of the following option is TRUE about the characteristic(s) of Bad Debt?
It is a definite loss to the business
It is not shown in Balance Sheet
No provision is necessary for it
All of the given options
Question 12: Word credit is derived from
Latin
English
French
Chinese
Question 13: Which of the following would be debited for incurred expenses to complete the fixed asset whose payment is made through cash?
Relevant fixed asset account
Cash account
Capital work in progress account
Incomplete fixed asset account
Question 14: Bank Reconciliation Statement is prepared by:
Bankers
Accountant of the business
Statutory auditor
Manger
Question 15: The main objective of financial reporting is to provide:
Essential information to internal users of financial reports.
Useful economic information about the business to the external parties for sound financial decisions.
Information to internal users about the cash position of the business.
Information to the Securities Exchange Commission (SEC).
Question 16: What type of expense are paid out of gross profit?
Selling expenses
general expenses
financial expenses
All of the above
Question 17: A Balance Sheet discloses the financial position of a firm:
For a certain given period
At a particular point of time
After the fixed date
None of the given options
Question 18: Which of the following is/are the example/s of Intangible Asset?
Patent rights
Copy rights
Good will
All of the given options
Question 19: Which of the following is non- profit organization?
Sole proprietorship
Partnership
Limited company
Trust
Question 20: What is "Deposit in transit" in bank reconciliation?
Added to Bank Balance
Subtracted From the Cash Book Balance
Added to Cashbook Balance
Subtracted From Bank Balance
