vu mgt101 Final Term - Quiz No.9
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.
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Question 1: Bank reconciliation statement is
A ledger account
A memorandum statement
A part of journal
A part of cash book
Question 2: Consider the following data and identify the amount which will be deducted from Sundry Debtors in Balance Sheet.
| Particulars | Rs. |
| Bad debts (from trial balance) | 1,600 |
| Provision for doubtful debts (old) | 2,000 |
| Current years provision (new) | 800 |
Rs. 400
Rs. 800
Rs. 2,000
Rs. 2,400
Question 3: Which of the following statement is TRUE about the Accounts receivable?
Accounts receivable arises when a company buys goods or services from another party on credit
Accounts receivable is a miscellaneous category that may include loans to employees
Accounts receivable are more formal than notes receivable
Accounts receivable are often called trade receivables
Question 4: Partial Payment of loan from bank is made Rs 50000. The effects of this transaction are:
Decrease in Asset Increase in Asset
Decrease in Liability Increase in Asset
Decrease in Liability Decrease in Asset
Decrease in Liability Increase in Expense
Question 5: Commercial accounting is based on
Single entry book keeping
Double entry book keeping
Both single and double entry book keeping
cash basic of book keeping
Question 6: Which of the following is the best explanation of capital expenditure?
It is recurring and regular and it occurs repeatedly
Neither an asset is acquired not the value of an asset is increased
It does not occur again and again. It is non-recurring and irregular
Its effect is temporary, i.e. the benefit is received within the accounting year
Question 7: In cash flow statements, which of the following would appear as an inflow of cash?
The repayments of a bank loan
Dividend issue in the current year
Money received as result of selling fixed assets
The difference between the valuations of old and new fixed assets
Question 8: The amount brought propritier in the business should be credited to
cash account
capital account
drawing account
Question 9: The amount of share premium can be utilized except:
To write off preliminary expenses
To meet the expenses of issue of shares
To distribute among the share holders
To issue bonus shares
Question 10: Which of the following account(s) will be affected, while rectifying the error of Sale to Mr.A Rs. 336 was not recorded at all?
Only sales account
Only A's account
Only cash account
Both sales account and A's account
Question 11: This system records only cash movement of transactions and that too up to the extent of recording one aspect of the transactions is __________
Cash accounting
Cash accounting and Single entry accounting
Single entry accounting
Double entry book keeping
Question 12: In cash book, the favourable balance indicates
Adjusted Balance
Credit Balance
Bank Overdraft
Debit Balance
Question 13: The persons who sign articles and memorandum of the company and contribute in the initial share capital of the company are called:
Subscribers
Shareholders
Managers
Directors
Question 14: Which of the financial statement DO NOT show the financial health of a business at specific date?
Profit and Loss account
Balane Sheet
Statement of financial position
Question 15: Firms chargers depreciation each year :
To ensure there is enough money in the firm to replace the asset
To spread the cost of the asset over its working life
Because the law state must be reduced
Question 18: In accounting accumulated depreciation is:
Treated as a reserve
Treated as a contra asset
Treated as a surplus
Treated as an expense
Question 19: Which of the following is the example of Current Assert?
Land
Building
Stock
Capital
Question 20: Which of the following account will be credit, if business sold goods for Rs 10,000 on credit?
Cash account
Sales account
account receivable account
purchase account
