MGT101 Quiz No.4 Shared by Ibrar Shehzad

Question # 1 of 20 ( Start time: 02:44:59 PM)

Which of the following is(are) TRUE about the sole trader form of business?
A sole trader is liable to pay income tax on his/her earnings
Sole traders must have to prepare books of accounts by law
Sole traders must register the name of their business with the Registrar of Companies
All of the given options

Question # 2 of 20 ( Start time: 02:44:59 PM)

In which depreciation method Depreciation remains constant?
Reducing balance method
Reducing balance method
Reducing balance method
Reducing balance method


Question # 3 of 20 ( Start time: 02:44:59 PM)

Goods returned by Mr. B amount to Rs. 4,000. The entry in the books will be:
Mr. B is Debit
Sales Returns is Credit111
Sales Returns is Debit Mr. B is Credit
Mr. B is Debit Accounts Receivable Credit

Question # 4 of 20 ( Start time: 02:44:59 PM)

Which of the following Organization converts raw material into finished goods?
Select correct option:
Trading concern
Manufacturing concern
Merchandising concern
Service concern

Question # 5 of 20 ( Start time: 02:44:59 PM)

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. 12,000
Rs. 11,000
Rs. 110,000
Rs. 111,000

Question # 7 of 20 ( Start time: 02:43:34 PM)
________ is the art of recording monetary transactions in the books of Accounts in a proper manner:
Accounting
Book Keeping
Posting
Vouching

Question # 8 of 20 ( Start time: 02:44:59 PM)
Which of the following Journal entry will be recorded when the bad debts are recovered?
Cash account (Dr.) & Bad Debts recovered account (Cr.)
Accounts Receivable (Dr.) & Bad Debts recovered account (Cr.)
Bad debts recovered account (Dr.) and profit & loss account (Cr.)
Provision for doubtful debts account (Dr.) & cash account (Cr.)

Question # 9 of 20 ( Start time: 02:44:59 PM)
Which of the following is/are the example/s of Intangible Asset?
Copy rights
Good will
Patent rights
All of the given options


Question # 10 of 20 ( Start time: 02:46:42 PM)
Under the straight line method of depreciation:
Amount of depreciation increases every year Note Sure
Amount of depreciation remains constant for every year
Amount of depreciation decreases every year
None of the given options

Question # 11 of 20 ( Start time: 02:48:10 PM)
If, Cost of machine = Rs.400, 000 Useful life = 5 years Residual value = Rs.25, 000 Sale price = Rs.40, 000 Rate of depreciation = 40% What will be the amount of depreciation charged on 3rd year using straight line method?
Rs. 35,000
Rs. 57,600
Rs. 75,000
Rs. 96,000

Question # 12 of 20 ( Start time: 02:48:10 PM)
Loss on revaluation of fixed asset should be charged to:
Profit and loss account
Balance sheet
Revaluation Reserve account
Accumulated depreciation account

Question # 13 of 20 ( Start time: 02:51:01 PM)
Debts that are not collectible and worthless to the creditor are known as:
Bad debts
Good debts
Doubtful debts
Provision for doubtful debts

Question # 14 of 20 ( Start time: 02:52:08 PM)
Which of the following would NOT be considered as a component of 'cost' of stock?
Salaries of selling staff
Transportation inward costs
Import duties
Purchase price


Question # 15 of 20 ( Start time: 02:52:30 PM)
Total depreciation of an asset can not exceed its:
Scrap value
Residual value
Market value
Depreciable value


Question # 16 of 20 ( Start time: 02:53:56 PM)
A company uses straight line method of depreciation for an item of equipment that cost Rs. 28,000, has salvage value of Rs. 3,000, and has a five year useful life. What will be the book value of asset at the end of third year?
Rs. 15,000
Rs. 10,000
Rs. 18,000
Rs. 13,000

Question # 17 of 20 ( Start time: 02:54:37 PM)
Which of the following is / are the particular/s of a cash book? (1) Date of transaction (2) Account title (3) Amount
1 only
1 & 2 only
1 & 3 only
1, 2 & 3

Question # 18 of 20 ( Start time: 02:55:51 PM)
At the end of the accounting period, the balance which is showing on the debit side of ledger account is called as:
Credit Balance
Debit Balance
Contra account
None of the above

Question # 19 of 20 ( Start time: 02:56:43 PM)
The amount charged to depreciation goes on declining in:
Depreciation fixed method
Annuity method
Written-down value method
Straight line depreciation method

Question # 20 of 20 ( Start time: 02:57:25 PM)
Which of the following is NOT a revenue expenditure?
Petrol consumed in motor vehicles
Cost of saleable goods
Bad debts
Premium given on lease