MGT101 Quiz No.3 Shared by Muhammad Bilal

Question # 1 of 20 ( Start time: 10:49:21 PM )Total Marks: 1

The total of all costs incurred to convert raw material into finished goods is known as:

Select correct option:

Prime cost

Conversion cost

 Sunk cost

 Opportunity cost

Question # 2 of 20 ( Start time: 10:50:38 PM )Total Marks: 1

Which of the following is NOT a revenue expenditure?

Select correct option:

Petrol consumed in motor vehicles

 Cost of saleable goods

 Bad debts

 Installation charges of machinery

Question # 3 of 20 ( Start time: 10:52:01 PM )Total Marks: 1

The "Bad debt expense" is the:

Select correct option:

direct expense

 selling expense

 administrative expense

 financial charge

Question # 4 of 20 ( Start time: 10:53:21 PM )Total Marks: 1

Depreciation is mainly a process of _______________.

Select correct option:

Allocation

 Valuation

 Calculation

 None of the above

Question # 5 of 20 ( Start time: 10:54:43 PM )Total Marks: 1

which of the following is ture about "cash" in the adjusting entries:

Select correct option:

cash can never be involved in the adjusting entires

 cash is involved in the adjusting entries

 cash can be involved in the adjusting entries

 all of the above are true

Question # 6 of 20 ( Start time: 10:56:06 PM )Total Marks: 1

Cost of goods sold + ending finished goods – opening finished goods=?

Select correct option:

Total factory cost

 Cost of goods manufactured

 Prime cost

 Conversion cost

Question # 7 of 20 ( Start time: 10:57:46 PM )Total Marks: 1

In which of the following statement/s closing stock is/are shown?

Select correct option:

Profit and loss account

 Balance sheet

 Income statement

 All of the given options

Question # 8 of 20 ( Start time: 10:59:00 PM )Total Marks: 1

When one or both aspects of a transaction are recorded in the wrong class or category of account, this is called:

Select correct option:

Error of Principle

Error of Original entry

 Error of Omission

 Error of Commission

Question # 9 of 20 ( Start time: 10:59:38 PM )Total Marks: 1

The proper classification of fees earned account is:

Select correct option:

Assets

 Liabilities

 Revenues

 Expenses

Question # 10 of 20 ( Start time: 11:00:24 PM )Total Marks: 1

Which of the following is Not an Asset Account?

Select correct option:

Plant & Machinery

 Loan to XYZ co.

 Cash at Bank

 Loan from ABC co.

Question # 11 of 20 ( Start time: 11:01:21 PM )Total Marks: 1

The differences between the balance of bank book statement and cash book is removed by making an adjusting entry through:

Select correct option:

cash voucher

 bank voucher

journal voucher

 sales voucher

Question # 12 of 20 ( Start time: 11:02:05 PM )Total Marks: 1

Following are the parts of the debtors control account except:

Select correct option:

credit sales

sales return

 cash sales

 cash/checque received

Question # 13 of 20 ( Start time: 11:02:55 PM )Total Marks: 1

Carriage outward and advertising expenses are known as:

Select correct option:

Administrative Expenses

 Financial Expenses

Selling Expenses

 Cost of Goods Sold

Question # 14 of 20 ( Start time: 11:04:00 PM )Total Marks: 1

The amount by which the seller agrees to reduce his or her price to the customer is called:

Select correct option:

Income

 Discount Allowed

 Discount Received

 Liability

Question # 15 of 20 ( Start time: 11:05:19 PM )Total Marks: 1

The goal of reconciliation is all of the following EXCEPT:

Select correct option:

To discover the various things the bank has not done in the pass book but recorded in cash book

 To discover anything that bank has passed through but the cash book has not

 To put right anything that is wrong & draws an explanation for the differences

 To discover any discrepancy that is due to timing rather than error

Question # 16 of 20 ( Start time: 11:06:41 PM )Total Marks: 1

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

Select correct option:

Journalizing

 Posting

 Balancing

 Analyzing

Question # 16 of 20 ( Start time: 11:06:41 PM )Total Marks: 1

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

Select correct option:

Journalizing

Posting

 Balancing

 Analyzing

Question # 17 of 20 ( Start time: 11:07:27 PM )Total Marks: 1

Which of the following is used to calculate Gross Profit?

Select correct option:

Expenses + Revenues

 Assets – Liabilities

 Revenue – Labor

 Net Revenue – Cost of Goods Sold

Question # 18 of 20 ( Start time: 11:08:43 PM )Total Marks: 1

In a manufacturing concern the amount of opening stock is Rs. 15000, its purchases during the year are Rs. 250,000, Freight Inward Rs, 5,000 and closing stock is Rs. 25,000. What will be the amount of Cost of Goods sold?

Select correct option:

Rs. 250,000

 Rs. 215,000

 Rs. 240,000

 Rs. 245,000

Question # 19 of 20 ( Start time: 11:09:54 PM )Total Marks: 1

Carriage paid Rs. 50 for the newly purchased machinery if debited to carriage account will effect:

Select correct option:

Only carriage account

 Only machinery account

 Both carriage and machinery account

 None of the given options

Question # 20 of 20 ( Start time: 11:10:43 PM )Total Marks: 1

The value at which an asset would bring to the management, when sold to a knowledgeable party in a fair deal is called:

Select correct option:

Residual value

 Historical Cost

Fair Value

 Written Down Value