vu mgt101 Mid 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 10 multiple choice questions (MCQs) to prepare and belongs to topic Mid 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: The basic purpose of depreciation is to achieve the:
Matching principle
Dual aspect principle
Separate entity concept
Money measurement concept
Question 2: Which of the following journal entry will be recorded, if the payment of furniture purchased is made through cheque?
Furniture account (Dr) and Bank account (Cr)
Furniture account (Dr) and Profit & Loss account (Cr)
Furniture account (Dr) and Cash account (Cr)
Cash account (Dr) and Furniture account (Cr)
Question 3: Which one of the following statement is CORRECT about Long term liabilities?
These are due within one year
These are consist of all debts, payable after 12 months
In working capital, these are deducted from current assets
All of the given options
Question 5: Gross profit - Operating expenses=?
Net profit
Cost of loss sold
Net loss
Gross loss
Question 6: Assets total Rs.50, 000 and Liabilities total Rs.10, 000. What is the equity of the business?
Rs. 40, 000
Rs. 60, 000
Rs. 10,000
Rs. 50,000
Question 7: The allocation of the cost of a tangible plant asset to expense in the periods, in which services are received from the asset, is termed as:
Appreciation
Depreciation
Fluctuation
None of the given options
Question 8: Which of the following account will be credited, if business purchased a vehicle on cash?
Vehicle account
Cash account
Business account
Bank account
Question 9: Firms charge 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
To reduce the profit and thus reduce the dividends they can pay to share holders
Because the law states they must be reduced
Question 10: An informal accounting statement that lists the ledger account balances at a point in time and compares the total of debit balances with the total of credit balances is known as:
Income Statement
Balance Sheet
Trial Balance
Cash Book
