MGT101 Quiz No.3 Shared by Saifi, Spring 2014

If debit side of a ledger is greater than credit side, the balance will be called as:

Debit Balance

Credit Balance

Excess Balance

Which of the following item is found in a Journal entry? (1) Date of each transaction (2) Rupee amount of each debit and credit (3) Explanation of each transaction

1 only

1 & 2 only

2 & 3 only

1, 2 & 3

____________ is NOT one of the legal forms of business?

Partnership

Corporation

Joint Tenancy

Sole Proprietorship

In accounting accumulated depreciation is:

Treated as a reserve

Treated as a contra asset

Treated as a surplus

Treated as an expense

The amount charged to depreciation goes on declining in:

Depreciation fixed method

Annuity method

Written-down value method

Straight line depreciation method

Which of the following is a debit entry on the Bank Statement that might not appear in the Cash Book?

A standing order

An uncredited cheque

A credit transfer

An unpresented cheque

Upon checking the Bank Statement against the Cash Book, an amount 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 the mistake?

Dr. Bank Account and Cr. Dividends Account

Dr. SIA Account and Cr. Bank Account

Dr. Dividends Account and Cr. Bank Account

Dr. Bank Account and Cr. SIA Account

Which of the following statements is also called as position statement or a statement of condition?

Income Statement

Cost of Goods sold

Statement of owner’s equity

Balance Sheet

All of the following are advantages of opening an account with Bank EXCEPT:

Money is kept safe—there is no risk of theft of dacoity.

Cash in hand at any time can easily be ascertained through Cash Book balance.

Money can be remitted from one place to another place very quickly and at reduced extent.

Bank enables its customers to buy goods on credit through Letter of Credit.

Which of the following is NOT a content of Cost of goods sold?

Opening Stock

Sales

Purchases

Closing Stock