MGT101 Quiz No.4 Shared by Naveed Abbas

Question # 1 of 20 ( Start time: 05:50:29 PM ) Total Marks: 1

When asset is sold, any profit or loss is computed by comparing the _______________with the amount received from sale.
Select correct option:

Book value
Residual value
Purchased value
Salvage value

Question # 2 of 20 ( Start time: 05:50:29 PM ) Total Marks: 1

When asset is sold, any profit or loss is computed by comparing the _______________with the amount received from sale.
Select correct option:

Book value Ans
Residual value
Purchased value
Salvage value

Question # 3 of 20 ( Start time: 05:51:47 PM ) Total Marks: 1

Which of the following formula is used to calculate the cost of goods sold?
Select correct option:

Cost of goods available for sale minus net purchases plus ending inventory
Beginning inventory plus net purchases plus freight in minus ending inventory
Beginning inventory minus net purchases minus ending inventory
Beginning inventory minus ending inventory

Question # 4 of 20 ( Start time: 05:53:16 PM ) Total Marks: 1

Which of the following is Not a part of General Ledger?
Select correct option:

Activity Book Ans
Purchase Return Book
Purchase Book
Sales Book

Question # 6 of 20 ( Start time: 05:55:21 PM ) Total Marks: 1

Which of the following docmuent has the conclusive evidence that the seperate legal entity has been formed:
Select correct option:

memorandum of association
articles of association
certificate of commencement of business
certificate of incorporation of the business

Question # 7 of 20 ( Start time: 05:56:51 PM ) Total Marks: 1

Which of the following is not the benefit of the subsidiary ledger:
Select correct option:

subsidiary ledger contains the record of all individuals debtors and creditors
subsidiary ledgers give information about the main clients and slow moving clients which is helpful for the managment in decision making
if the business has distributors in different areas, subsidiary ledger gives information about the sale of different distributors in different areas which are helpful for the management in decision making
subsidiary ledger makes the work of accountant difficult by making the accounting record more complicated

Question # 8 of 20 ( Start time: 05:58:00 PM ) Total Marks: 1

Under the straight line method of depreciation:
Select correct option:

Amount of depreciation increases every year
Amount of depreciation remains constant for every year
Amount of depreciation decreases every year
None of the given options

Question # 9 of 20 ( Start time: 05:59:05 PM ) Total Marks: 1

Which one of the following accounts normally does NOT exist in the balance sheet of a manufacturing concern?
Select correct option:

Work in Process Inventory ans
Raw Materials Inventory
Merchandise Inventory
Finished Goods Inventory

Question # 10 of 20 ( Start time: 06:00:29 PM ) Total Marks: 1

If Total Assets of the business worth Rs. 200,000, Current Assets Rs. 100,000 and working capital of the business has the value of Rs. 25,000. What will be the amount of Current Liabilities of the business?
Select correct option:

Rs. 25,000
Rs. 125,000
Rs. 75,000
Rs. 100,000

Question # 11 of 20 ( Start time: 06:01:54 PM ) Total Marks: 1

The head of board of directors of Private limited Companies is called:
Select correct option:

Chief Executive Ans
Governor
Chief Minister
President

Question # 12 of 20 ( Start time: 06:02:58 PM ) Total Marks: 1

___________ is the detail of transaction in one's account provided by the bank.
Select correct option:

Bank statement Ans
Bank reconciliation statement
Income statement
Financial statement

Question # 13 of 20 ( Start time: 06:04:07 PM ) Total Marks: 1

An amount of Rs. 8000 paid as wages for installation of a Machine should be debited to:
Select correct option:

Wages Account
Cash Account
Machinery Account
Salaries Account

Question # 14 of 20 ( Start time: 06:05:30 PM ) Total Marks: 1

Cost of goods manufactured - opening work in process + ending work in process =?
Select correct option:

Cost of goods sold
Prime cost
Conversion cost
Total factory cost

Question # 15 of 20 ( Start time: 06:06:52 PM ) Total Marks: 1

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 depreciation of machine after one year using diminishing balance method?
Select correct option:

Rs. 1, 50,000
Rs. 11,840
Rs. 34,560
Rs. 34,860

when sold to a knowledgeable party

Question # 16 of 20 ( Start time: 06:08:19 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

Question # 17 of 20 ( Start time: 06:09:25 PM ) Total Marks: 1

Find out the Owner's equitt,apart of an Accounting Equation with the help of given data: Cash Rs. 22,500 Debtors Rs. 50,000 Total assets Rs. missing Accounts payable Rs. 30,000 Total liabilities+ owner equity Rs. missing
Select correct option:

Owner's equity =42,500
Owner's equity =45,200
Owner's equity =42,520
None of the above

Question # 18 of 20 ( Start time: 06:10:49 PM ) Total Marks: 1

In a manufacturing concern the entry for Consumption of goods will be:
Select correct option:

Finished goods A/c
Stock A/c
Work in process A/c
Finished goods A/c
Cost of goods sold A/c
Stock A/c
Cost of goods sod A/c
Sales A/c

Question # 19 of 20 ( Start time: 06:12:03 PM ) Total Marks: 1

Bad debts written off (given in adjustment) always affect the:
Select correct option:

Debtors account
Creditors account
Cash account
Capital account

Question # 20 of 20 ( Start time: 06:13:22 PM ) Total Marks: 1

Which of the following is CORRECT if closing stock is only given in trial balance?
Select correct option:

It has been already been deducted from purchases
It will not be shown in credit side of trading account
It will be only shown in Balance Sheet
All of the given options are correct