In the name of ALLAH, the most beneficient, the most merciful

Financial Accounting (MGT101)

Multiple Choice Questions (MCQs)

 

Objective Questions

Question

The main purpose of ___________ is to ascertain true result of the business operation during particular period of time.

  1. Cost Accounting
  2. Financial Accounting
  3. Managerial Accounting
  4. Tax Accounting

Answer: 2 Chapter No. 1 

Question

What does single entry accounting mean?

  1. It means to record debit only
  2. It means to record one side of entry only
  3. It means to record cash only
  4. It means to record credit only

Answer: 3 Chapter No. 2 

Question

Commercial Accounting is done through a system that is known as:

  1. Single entry system of Accounting
  2. Accrual system of Accounting
  3. Double Entry system of Accounting
  4. Cash system of Accounting

Answer: 3 Chapter No. 2 

Question

The journal entry to record purchase of furniture on credit would include a:

  1. Credit to furniture A/c
  2. Credit to Cash A/c
  3. Credit to Payables A/c
  4. Credit to Receivables A/c

Answer: 3 Chapter No. 3 

Question

Working capital Rs. 20,000, Current liabilities Rs. 30,000 and fixed assets Rs. 100,000; calculate current assets?

  1. Rs. 10,000
  2. Rs. 50,000
  3. Rs. 110,000
  4. Rs. 120,000

Answer: 2 Chapter No. 4 

Question

Which of the following expenses are called financial expenses?

  1. Payment of rent & Salary expense
  2. Markup on loan& Bank Charges
  3. Interest & advertisement expense
  4. Wages and Depreciation expense

Answer: 2 Chapter No. 8 

Question

Revenues, expenses and net profit are found on a:

  1. Statement of Cash Flows
  2. Income Statement
  3. Statement of Owner’s Equity
  4. Balance Sheet

Answer: 2 Chapter No. 8 

Question

Which of the following is used to calculate Gross Profit?

  1. Expenses + Revenues
  2. Assets – Liabilities
  3. Revenue – Labor
  4. Net Revenue – Cost of Goods Sold

Answer: 4 Chapter No. 8 

Question

A Balance Sheet discloses the financial position of a firm:

  1. For a certain given period
  2. At a particular point of time
  3. After the fixed date
  4. None of the given options

Answer: 2 Chapter No. 9