vu mgt101 Mid Term - Quiz No.6
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 records that are kept for the individual asset, liability, equity, revenue, expense, and dividend components are known as:
Accounts
Vouchers
Journals
Statements
Question 2: Double entry accounting system includes:
Accrual accounting only
Cash accounting only
Both cash and accrual accounting
None of the given options
Question 3: Which of the following statement is TRUE about the positive working capital of a company?
It shows sound position of a company
It shows that company has sufficient current assets to meet current liabilities
It shows that current assets are greater than current liabilities
All of the given options
Question 4: Revenue should be recognized or recorded when the goods are sold or services are rendered to the customer, this concept is known as:
Consistency concept
Realization Concept
Materiality concept
Matching concept
Question 5: If the cost of sales is Rs. 60,000, sales are Rs. 95,000 and operating expenses are Rs.20,000 during the year. What would be the Net Profit?
Rs.15,000
Rs. 35,000
Rs. 55,000
Rs. 60,000
Question 6: Which of the following item appears in Trading Account of a business?
Interest expenses
Wages and salaries
Depreciation expenses
Discount Allowed
Question 7: What would be the affect on the components 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 goods and decrease in cash
Increase in equipment and increase in equity
Question 8: Which of the following financial statement DO NOT show the financial health of a business at a specific date?
Profit and loss account
Balance sheet
Statement of financial position
All of the given options
Question 9: Which one of the following is equal to the carrying cost of an asset?
Original cost minus Accumulated depreciation
Original cost plus Accumulated depreciation
Original cost minus Residual value
Written down value minus Accumulated depreciation
Question 10: What will be the effect on accounting equation, when payment is made to the creditor of the business?
Decrease in an asset, decrease in a liability
Increase in an asset, increase in a liability
Decrease in an asset, decrease in owner's equity
Increase in an asset, increase in owner's equity
