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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 o...

1. The total of all costs incurred to convert raw material into finished goods is known as: Prime cost Conversion cost Sunk cost Opportunity cost 2. Which of the following account balance is shown on credit side of Trial Balance? (It is assumed that all account balances are shown on normal balance) Cash account Furniture account Vehicle account Capital account 3. Which one of the following cannot be classified as Revenue Income? Goods sold for cash Goods sold on credit Income from the sale of services Income from the sale of fixed assets 4. From the given particulars, calculate the rate of depreciation under the diminishing balance method of depreciation: Cost of Asset = Rs. 2,000 Residual Value = Rs. 400 Useful Life = 4 years 42 % 30 % 27 % 33 % 5. Which of the following is the main objective of charging depreciation? To show the true financial position in the balance sheet To provide funds for replacement of fixed assets To allocate true p...

-> Quiz No.2 1. _______ is the basic part of an item, which is processed to make a complete item: Factory overhead Raw material Finished goods Work in process 2. Which of the following is the main cause of depreciation? Fall in the market value of money Fall in the market value of an asset None of the above 3. What will be debited, if business bought goods on credit from Mr. Ali? Purchases account Mr. Ali account Cash account Sales account 4. A book that keeps separate record for each account is known as: Trial Balance Voucher General Journa General Ledger 5. Loss on the sale of plant and machinery should be written off against: Sales premium account Depreciation fund account Sales account Plant and machinery 6. What will be debited, if business purchased Furniture on cash? Furniture account Cash account Business account Bank account 7. The allocation of the cost of a tangible plant asset to expense in the periods, in which ser...

MGT101 Quiz No # 2 | Date: May 30, 2014 1. Any expense that gives benefit for a period of less than twelve months is called ________. Capital Expense Revenue Receipt Deferred Expense 2. 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 3. In Book keeping, _________ is the first document to record an entry: Journal Ledger Voucher Trial Balance 4. In which depreciation method Depreciation remains constant? Reducing balance method Straight Line method Units of Production None of the given options 5. An accounting system is used by a business to: Analyze transactions Handle routine bookkeeping tasks Structure information All of the given options 6. In case of Income and Expenditure account, Excess of income over expenses in a specified accounting period is called: Profit Loss Deficit Sur...