MGT101 Quiz No.3 Shared by Waqar

Which one of the following accounts normally does NOT exist in the balance sheet of a manufacturing concern?
Work in Process Inventory

The proper classification of inventory account is:
Assets

Amount generated from sales in a business is called:
Gross Profit

What would be the value of Total Factory Cost, if cost of raw materials, direct labor costs, and manufacturing overhead costs are Rs.80,000, Rs.50,000, and Rs.60,000 respectively?
Rs.110, 000

Which one of the following is NOT a feature of sole proprietorship business.
Separate Legal Entity

Which of the following are recorded in Cash Book?
Receipts and payments

An accounting system in which there is a partial or no record of some of the transactions is called as:
Single Entry Accounting

When a business purchases goods from ABC & Co. and promises to pay the amount at certain future time period, we will call ABC & Co. as:
Debtors of the business

Revenues, expenses and net profit are found on a:
Income Statement

Machinery purchased on Credit for Rs 15000 will have an effect on which of the following accounts?
Machinery Account & Accounts Payable Account

Commercial Accounting is done through a system that is known as:
Double Entry system of Accounting

Total assets - total liabilities =
Owners Equity

Which of the following is the main cause of depreciation?
Physical wear and tear

Fixed assets are also called:
Depreciable assets

A voucher which is used to record a payment of cash or cheque:
Payment Voucher

Total depreciation of an asset can not exceed its:
Depreciable value

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

In which of the following Gross Profit is calculated?
Trading Account

Find out the missing value of an Accounting Equation with the help of given data: Furniture Rs. 90,000 Cash Rs.100, 000 Debtors Rs.10, 000 Other Assets Rs. 1,000 Owner’s equity Rs. 90, 000 Liaibilities ?
Rs. 111, 000

Salaries paid to employees Rs. 15,000. The effect of this transaction would be:
Increase in Expense Decrease in Asset