MGT101 Quiz No.1 Shared by Muallima Muhammad, Spring 2014

The investment of Rs.10,000 made by the owner in business will have an effect on which of the following accounts?

Cash Account & Capital Account

Cash Account & Expense Account

If Salaries Rs.12, 000, Rent Rs.5,000, Gross profit Rs.58,000 and Discount received Rs.10, 000. What will be the amount of Net Profit?

Rs.41,000

Rs.51,000

Rs.61,000

The process of transferring journal entry information to the ledger is called:

Journalizing

 Posting

 Balancing

 Analyzing

Which of the following is NOT a stage of transaction processing?

Recording

 Summarizing

Budgeting

 Interpreting

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

If Gross profit Rs..16,500 and Cost of goods sold Rs..183,500, what will be the amount of Net Sales?

 Rs.183, 500

 Rs.167, 000

Goods returned by Mr. B amount to Rs.4,000. The entry in the books will be:

Mr. B is Debit Sales Returns is Credit

 Sales Returns is Debit Mr. B is Credit

 Mr. B is Debit Accounts Receivable Credit\

Purchases Return Debit Mr. B is Credit

An expenditure whose benefit is finished or enjoyed immediately is called:

 expense

 liability

 cost

income

Find out the missing value of an Accounting Equation with the help of given data: Cash Rs..100, 000 DebtoRs. Rs..10, 000 Other Assets Rs.1,000 Owner’s equity Rs.1, 000 Liabilities ?

 Rs. 12000

 Rs. 11000

 Rs. 110000

 Rs. 111000

Find out the missing value of an Accounting Equation with the help of given data: Cash Rs.22,500 DebtoRs. Rs.500 Total Assets Rs.80, 385 Accounts payable Rs.1,000 Total liabilities Rs.20,000

 Rs.59,385 owner’s equity

 Rs.61,385 owner’s equity

 Rs.99,885 owner’s equity

Rs.99,385 owner’s equity