vu mgt101 Final Term - Quiz No.6
vu mgt101 Financial Accounting Quiz
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Question 1: Which of the following particular is NOT included in the specimen of a payment voucher?
Name of organization
Cash payment amount
Date of transaction
Bank receipt
Question 2: Calculate net income Purchases 150000 Expenses 55000 Sales 200000
11000
-3000
5000
-5000
Question 3: 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
Question 4: Double entry accounting system include:
Accrual accounting only
Cash accounting only
Both A and B
None of the given
Question 5: What would be the affects on component of the accounting equation if goods are purchased on cash?
increase in cash and decrease in equity
increase in cash and increase in goods
increase in cash and decrease in goods
Question 6: An accounting system is used by a business to:
Analyze transactions
Handle routine bookkeeping tasks
Structure information
All of the given options
Question 7: The favourable balance of profit and loss account should be:
added in liabilities
subtracted from current assets
Subtracted from liabilities
added in capital
Question 8: Which of the following is not an item of Balance Sheet?
Accounts receivable
accounts payable
sales revenue
marketable securities
Question 9: What is nature of Capital account?
Debit
Credit
Expenses
Loss
Question 10: Which of the following should NOT be recorded in journal voucher?
Receipt of cash
Depreciation
Charge of interest payable
Correction of errors
Question 11: Which of the following option(s) is TRUE about the Sales returns?
Sales returns reduce the Gross sales of the firm
Sales returns affect the Net income of the firm
Sales returns affect the flow of cash
All of the given options
Question 12: Following information are extracted from books of Mr. XYZ
| Particulars | Rs. |
| Closing value of stock | 40,000 |
| Bad Debts (Given in trial balance) | 500 |
| Old provisions (Given in trial balance) | 800 |
| Sundry Debtors (Given in trial balance) | 44,500 |
| Provision for doubtful debts @ 5% | |
| Which amount of new provision will be deducted from Sundry Debtors | ? |
Rs. 2,225
Rs. 2,525
Rs. 1,925
Rs. 3,025
Question 13: Which of the following organizations do NOT prepare Income & Expenditure account?
Public limited companies
Private limited companies
Partnership firms
All of the given options
Question 14: In cost of goods sold statement the cost of goods manufactured is equal to:
Total factory cost + Opening work in process + Ending work in process
Total factory cost + Opening work in process - Ending work in process
Total factory cost - Opening work in process + Ending work in process
Ending work in process + Total factory cost - Opening work in process
Question 15: Nominal accounts are related to:
Assets
Firm or business
Liabilities
Expense, losses and income
Question 16: Sunset tours has Rs.3,500 account receivable from the Del Mar Rotary. On January 20, the Rotary makes a partial payment of Rs.2,100 to Sunset Tours. The journal entry made on January 20 by Sunset Tours to record this transaction includes:
A debit to the Cash Received account of Rs. 3,500
A credit to the Accounts Receivable account of Rs.2,100
A debit to the Cash account of Rs.1,400
A debit to the Accounts Receivables account of Rs.1,400
Question 17: The following is not a type of liability
Contingent
Current
Fixed
Short term
Question 18: Which of the following should be shown on credit side of cash account?
Collection from customers
Sales on cash basis
Sales on cedit basis
Payment of loan
Question 19: Current ratio may be increased by:
Overstating current Assets
Overstating current Liabilities
Understating current Assets
Understating current assets and overstating current liabilities
Question 20: In case of fixed capital accounts, other transactions such as Drawings and Profit etc. are recorded in a separate account that is called __________.
Fixed Capital Account
Current Account
Fluctuating Capital Account
Floating Capital Account
