vu mgt101 Final Term - Quiz No.10
vu mgt101 Financial Accounting Quiz
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Question 1: In which of the following statement opening stock is shown?
Profit and loss account
Balance sheet
Cash flow statement
Owner's equity
Question 2: Receipts from debtors appear on the __________ side of the individual debtors account.
Left side or credit
Left side or debit
Right side or debit
Right side or credit
Question 3: We can say that business in profit when
Assets exceeds expenditure
Assets exceeds liabilities
income exceeds expenditure
income exceeds liabilities
Question 4: A Debtor Control Account is a part of:
Double Entry book keeping system
Single entry book keeping system
Cash accounting system
All of the given
Question 6: The long term assets that have no physical existence but are rights that have value is known as
Investments
Intangible assets
Fixed assets
Current assets
Question 7: Are fixtures and fittings assets or liabilities?
liabilities
assets
debit
credit
Question 8: Which of the following account will be debited, when the bad debts are recovered?
Bad debt recovered a/c
Cash a/c
Doubtful debts a/c
Bad debts a/c
Question 9: What are the effects on financial statements, if provision for Income Tax to be made Rs. 12,000 is given in adjustment?
It will be deducted in Income Statement only
It will be treated as current liability in balance sheet only
It will be treated as current asset in balance sheet only
Both it will be deducted in income statement and it will be treated as current liability in balance sheet
Question 10: Which is the correct quation for calculation of profit
Cash Sale*Cash Payment + (Credit Sale-Credit Expense)
Cash Sale/Cash Payment + (Credit Sale-Credit Expense)
Cash Sale+Cash Payment + (Credit Sale-Credit Expense)
Cash Sale-Cash Payment + (Credit Sale-Credit Expense)
Question 11: Insurance premiums paid in advance but not yet expired are reported in which of the following account?
Insurance payable
Prepaid insurance
Advance payment account
Insurance expense
Question 12: Following information are extracted from books of Mr. XYZ
If the Provision for doubtful debts has been increased by 5%, which amount of new provision will be shown in Profit Loss Account?
| Particulars | Rs. |
| Bad Debts (Given in trial balance) | 500 |
| Old provisions (Given in trial balance) | 700 |
| Sundry Debtors (Given in trial balance) | 44,800 |
If the Provision for doubtful debts has been increased by 5%, which amount of new provision will be shown in Profit Loss Account?
Rs. 2,240
Rs. 2,425
Rs. 1,925
Rs. 3,025
Question 13: Expenditures incurred annually on renewal of patent are known as:
Revenue Expenditures
Capital Expenditures
Deferred Expenditures
None of the given options
Question 14: Which of the following rectifying entry will be recorded, if sales to Mr. A of Rs.336 have been debited to Mr. B account?
A's account (Dr.) and B's account (Cr.)
B's account (Dr.) and A's account (Cr.)
Sales account (Dr.) and B's account (cr.)
B's account (Dr.) and Sales account (Cr.)
Question 15: The accounting system in which events are recorded when actual cash / cheque is received or paid
Cash Accounting
Accrual Accounting
Dairy accounting
Accounting
Question 16:
| Particulars | Rs. |
| Opening stock of raw material | 100,000 |
| Closing stock of raw material | 85,000 |
| Purchases of raw material during the period | 200, 000 |
| Cost of Material Consumed | __________ |
Rs. 205,000
Rs. 215,000
Rs. 220,000
Rs. 225,000
Question 17: Which one of the following is CORRECT about the closing stock?
It appears in the assets side of a balance sheet
It decreases the value of cost of goods sold
It becomes opening stock of next year
All of the given option
Question 18: Find out value of account receivable from following Cash Rs. 48,000 account payable Rs. 33,000 office equipment Rs. 21,000 owner equity Rs. 77,000
Rs. 21,000
Rs. 15,000
Rs. 110,000
Rs. 41,000
Question 19: Which of the following is decreased when an asset is converted into expense in adjustment?
Revenue
Net income
Expense
Liability
Question 20: Which of the following capital is taken up by the general public?
Issued capital
Subscribed capital
Authorized capital
Reserve capital
