MGT101 Quiz No.3 Shared by Student Rana

The investment of Rs. 10,000 made by the owner in business will have an effecton which of the followingaccounts?
Cash Account & Capital Account

Cash Account & Expense Account

Capital Account & Revenue Account

Capital Account & Expense Account

The term "Debit" is drived from ------language.
latIN

English

A book that keeps separate record for each account is knownas:

Trial Balance

voucher

general journal

general ledger

Which of the following businesses have unlimited liability?I) Sole Proprietorship II) Partnership III) Joint Stock Company

I and III

II and III

I and II

I, II, and III

Fixed Asset (WDV) + workingcapital =?

Total assets Employed

Total liabilities

TOTAL assets

current assets

Cost of goods manufactured + openingfinished goods – ending finished goods =?
Total factory cost

Cost of goods sold

prime cost

conversion cost

A Debtor Control Account is a part of

Double Entry book keeping system

Single entry book keeping system

A voucher which is used to record a payment of cash orcheque:

Cash Payment Voucher

ABC co. has a capital of Rs. 100,000, Long Term LiabilitiesRs. 50,000, net profit during the year Rs. 15,000 and the amount of totalassetsis Rs 175,000. What will be the amount of Current Liabilities?

Rs. 20,000

Rs. 150,000

Rs. 10,00

Rs.25000

The third party who owes money to the business iscalled:

Debtor

Creditor

stock holder

stack holder

Bad debts written off (given in adjustment) always affect the
Debtors account

Creditors account

cash account

In cost of goods sold statement, the ‘cost of materialconsumed’ is equal to:

Opening raw material inventory + Purchases – Ending rawmaterial inventory

Opening raw material inventory - Purchases + Ending raw materialinventory

Ending raw material inventory + Opening raw materialinventory - Purchases

Ending raw material inventory + Opening raw materialinventory + Purchases

Which of the following is/are the example/s of IntangibleAsset?

Copy rights

Good will

Patent rights

All of the given options

Which of the following is (are) item (s) of cost of goods soldstatement?

Purchase of raw material

Any tax/freight paid on purchases

Any expense incurred on carriage/transportation of rawmaterial purchased items

All of the given options

What will be debited, if business bought goods on creditfrom Mr. Ali?

Purchases account

Mr. Ali account

Cash account

Sales account

Expense incurred for operating activities of the business in providing goods andservices is known as:
revenue expense
capital expense

deferred expense

preliminary expense

Upon checking the Bank Statement against the Cash Book, anamount of Rs.120 for dividends from SIA had not been entered in the Cash Book.Which of the following entries should be recorded to rectify themistake?

Dr. Bank Account and Cr. DividendsAccount

Dr. SIA Account and Cr. Bank Account

Dr. Dividends Account and Cr. Bank Account

Dr. Bank Account and Cr. SIA Account

A receipt is capital receipt because

It is related to normal reasons

the amount is heavy

it is credited to capital account

it is related to fixed assets

A company uses straight line method of depreciation for anitem of equipment that cost Rs. 28,000, has salvage value of Rs. 3,000, and hasa five year useful life. What will be the book value of asset at the end ofthird year?

Rs. 15,000

Rs. 10,000

Rs. 18,000

Rs. 13,000

Bank Reconciliation Statement is:

A memorandum statement

A ledger account

A part of cash book

A part of journal