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MGT101 Quiz No.2 Shared by Saif.bscs (Solved), Spring 2014



Normally single entry book keeping is followed by the:
Small businesses only
Governments only
Large scale businesses only
Both Small businesses and Governments

The proper classification of Suppliers account is:
Assets
Expenses
Revenues
Liabilities

Depreciation is mainly a process of _______________.
Allocation
Valuation
Calculation
None of the above

An accounting system in which risk of fraud or its non discovery is less is known as:
Double Entry Accounting system
Single Entry Accounting system
Cash System of Accounting
Accrual Accounting system

Consider the following data: Particulars Rs. Assets 99,500 Owner's equity 50,500 Liabilities ?
Rs. 49,000
Rs. 55,000
Rs. 125,000
Rs. 115,700

Which one of the following is INCORRECT about closing Stock?
It is added into current assets
It is deducted from Material available for use
It becomes opening stock of next year
It reduces the resources of business

Carriage outward and advertising expenses are known as:
Administrative Expenses
Financial Expenses
Selling Expenses
Cost of Goods Sold

In which of the following all vouchers are first recorded___________.
General Journal
General Ledger
Balance Sheet
Trial Balance


In which depreciation method Depreciation remains constant?
Reducing balance method
Units of Production
Straight Line method
None of the given options

Any expense that becomes a source of income generation for a long time period is called __________
Capital Expense
Revenue Expense
Revenue Receipt
Capital Receipt

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

Budget is a plan of income, expenses & other financial operations for:
Current period
Future period
Past period
None of the given options

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

The investment of Rs. 10,000 made by the owner in business will have an effect on which of the following accounts?
Cash Account & Capital Account
Cash Account & Expense Account
Capital Account & Revenue Account
Capital Account & Expense Account

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

Find out the missing value of an Accounting Equation with the help of given data: Bank Rs. 22,500 Other assets Rs. 1,000 Creditors Rs. 8, 385 Other liabilities Rs. 9,000 Owner’s equity ?
Rs. 6,115
Rs. 31,885
Rs. 17,385
Rs. 14,115


In which of the following statement opening stock is shown?
Profit and loss account
Balance sheet
Cash flow statement
Owner’s equity

The allocation of the cost of a tangible plant asset to expense in the periods, in which services are received from the asset, is termed as:
Appreciation
Depreciation
Fluctuation
None of the given options

When a fixed asset in progress is completed, all costs are transferred to:
Profit & Loss A/c
Statement of owner’s equity
Relevant asset A/c
Profit & loss appropriation A/c

Partial Payment of loan from bank is made Rs 50000. The effects of this transaction are:
Decrease in Asset Increase in Asset
Decrease in Liability Increase in Asset
Decrease in Liability Decrease in Asset
Decrease in Liability Increase in Expense

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