vu mgt101 Final Term - Quiz No.5
vu mgt101 Financial Accounting Quiz
This quiz belongs to book/course code vu mgt101 Financial Accounting of vu organization. We have 99 quizzes available related to the book/course Financial Accounting. This quiz has a total of 20 multiple choice questions (MCQs) to prepare and belongs to topic Final Term. NVAEducation wants its users to help them learn in an easy way. For that purpose, you are free to prepare online MCQs and quizzes.
NVAEducation also facilitates users to contribute in online competitions with other students to make a challenging situation to learn in a creative way. You can create one to one, and group competition on an topic of a book/course code. Also on NVAEducation you can get certifications by passing the online quiz test.
Question 1: An asset on the balance sheet which is expected to be sold or used within one year is known as:
Tangible asset
Current asset
Fixed asset
Long term asset
Question 2: Calculate net income Expenses 1200 sales 10000 Purchases 8000
1400
1000
1200
800
Question 3: Which of the following account will be credited in the books of XYZ Co. Ltd, if the business purchased a vehicle though cheque?
Vehicle account
Cash account
Business account
Bank account
Question 4: Following are the inventories of Manufacturing Concern EXCEPT
Raw material
work in process
finished goods
merchandise inventory
Question 5: Mr. A & B entered into a partnership with an equal investment and equal share in profit or loss. Markup on capital of Mr. A is Rs.2,500 and markup on drawings of Mr. B is Rs.2,800. The net income for the year is Rs.95,000. What will be the amount of distributable profit?
Rs.89, 700
Rs.94, 700
Rs.95, 300
Rs.100, 300
Question 6: A receipt of cash Rs. 10,000 from Mr. Bilal is recorded as Rs. 1,000. What amount will be adjusted in rectifying entry?
Rs. 1,000
Rs. 9,000
Rs. 10,000
Rs. 11,000
Question 7: The inventory system that does NOT update the Inventory account automatically at the time of each purchase or sales is the __________ method/system.
Periodic
Perpetual
None
First in first obtained
Question 9: If cost of sales is Rs. 95,000, income from sales Rs. 200,000 and operating expenses Rs. 300,000. What will be net result?
Rs. 1, 95,000 Losses
Rs. 1, 95,000 Profits
Rs 1, 05,000 Profits
Rs1, 05,000 Losses
Question 10: Which of the following is Not an Asset Account?
Plant & Machinery
Loan to XYZ co.
Cash at Bank
Loan from ABC co.
Question 13: The cost of goods and services used up in the process of obtaining revenue is known as:
Revenue
Expense
Liability
Expenditure
Question 14: The accounts that records expenses, gains and losses are
Personal accounts
Nominal accounts
Real accounts
None of the above
Question 15: The cost of moving planet and machinery to a new site will be treated as:
Revenue expenses
Capital expenses
Operating expenses
Administrative expenses
Question 16: Which of the following is a Revenue receipt?
Purchase of a building
Sales revenue
Long term loan from bank
Payment of salaries
Question 17: A firm may earn profit during an accounting period but have less money in the bank at the end of the period then it had at the beginning. Which of the followings, on its own, could explain this?
Not paying invoices received from creditors
The sale of fixed assets during the period
An increase in trade debtors over the course of the period
An increase in the depreciation charge relative to the previous accounting period
Question 18: Which of the following account is affected from the Drawings of cash in sole-proprietorship business?
Capital account
Shareholder account
Liability account
Expense account
Question 19: Which financial statement show what a business owes at a particular point in time?
A cash flow statement
The bank statement for the business
A balance sheet
A statement of retained earnings
Question 20: If a business purchases machinery for Rs. 30,000 on 31st January 2008 having life of 10 years, this expense will be realized __________ under the concept of accrual accounting.
For the year 2008 only
For the last day of 10th year only
Over 10 years
Nothing can be said about it
