Financial Accounting (MGT101)

1. Expenses = ?

   1. Profit + income
   2. Profit - capital
   3. Assets + profit
   4. Income - profit

2. Partnership means a lawful business owned by at least:

   1. Two or more persons
   2. Five or more persons
   3. Seven or more persons
   4. Nine or more persons

3. ________ is the art of recording, classifying and summarizing the transactions and events of a business and interpreting the results thereof

   1. Book-keeping
   2. Accounting
   3. Management
   4. Auditing

4. Cotton thread to make fabric in manufacturing concern is:

   1. Raw material
   2. Stock in trade
   3. Work in process
   4. Finished goods

5. Under periodic system of recording inventory, purchase of inventory is debited to ________.

   1. Inventory purchase account
   2. Debtors account
   3. Purchase account
   4. Bank account

6. Which of the following is the best explanation of capital expenditure?

   1. It is recurring and regular and it occurs repeatedly
   2. Neither an asset is acquired not the value of an asset is increased
   3. It does not occur again and again. It is non-recurring and irregular
   4. Its effect is temporary, i.e. the benefit is received within the accounting year

7. While preparing a Debtors Control Account, Debit side posted items cause:

   1. Increase in creditors' balance
   2. Both increase and decrease in debtors' balance
   3. Increase in debtors' balance
   4. Decrease in debtors' balance

8. Which of the following methods of inventory valuation shows a lower cost of goods sold when prices are rising with the passage of time?

   1. FIFO method
   2. LIFO method
   3. Weight average method
   4. Specific identification method

9. The total cost of an asset minus accumulated depreciation is called as _________.

   1. Current market Value
   2. Historical Cost
   3. Book Value
   4. Replacement Cost

10. Which of the following assets are shown at written down value in balance sheet?

    1. Current assets
    2. Liquid assets
    3. Floating assets
    4. Fixed assets

11. At the end of accounting period a list of all ledger balances is prepared. This list is called ______.

    1. Journal
    2. Ledger
    3. Cash Book
    4. Trial Balance

12. Which of the following is a Capital expenditure?

    1. Sales revenue
    2. Payment of salaries
    3. Long term loan from bank
    4. Purchase of a building

13. 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

14. 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

15. What should be credited, if rent paid in cash?

    1. Landlord’s account
    2. Rent account
    3. Cash account
    4. Accounts receivable account

16. 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

17. A wrong entry on the debit side of the Cash Book would lead to:

    1. Cash Book showing less Balance
    2. Cash Book showing more Balance
    3. Cash withdrawal
    4. Purchases

18. In which of the following statement opening stock is shown?

    1. Profit and loss account
    2. Balance sheet
    3. Cash flow statement
    4. Owner’s equity

19. What is the nature of a revenue account?

    1. Asset
    2. Debit
    3. Credit
    4. Expense

20. While preparing a Debtors Control Account, Credit side posted items cause:

    1. Both increase and decrease in debtors' balance
    2. Decrease in debtors' balance
    3. Increase in debtors' balance
    4. Increase in creditors' balance

21. What will be the amount of depreciation charged in 3rd year using straight line method if cost of machine is Rs. 400,000, useful life is 5 years, residual value is Rs. 25,000 and sale price of machine is Rs. 35,000?

    1. Rs. 69,000
    2. Rs. 55,000
    3. Rs. 75,000
    4. Rs. 80,000

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

    1. Debit Balance
    2. Credit Balance
    3. Excess Balance
    4. None of the given

23. In accounting accumulated depreciation is:

    1. Treated as a reserve
    2. Treated as a contra asset
    3. Treated as a surplus
    4. Treated as an expense

24. Another name of net income or positive financial return is:

    1. Profit
    2. Contribution Margin
    3. Revenue
    4. Credit

25. Which of the following entry will be recorded for discount received in a control account?

    1. Discount Received (Dr) and Creditors Control A/c (Cr)
    2. Discount Received (Dr) and Creditors A/c (Cr)
    3. Creditors Control A/c (Dr) and Discount Received (Cr)
    4. Debtors A/c (Dr) and Discount Received (Cr)

26. In Book keeping, _________ is the first document to record an entry:

    1. Journal
    2. Ledger
    3. Voucher
    4. Trial Balance

27. A manufacturing concern has Raw material of worth Rs. 100,000, Direct Labor Rs. 75,000 and Factory Overhead Rs. 50,000. The amount of Prime cost will be:

    1. Rs. 150,000
    2. Rs. 175,000
    3. Rs. 125,000
    4. Rs. 225,000

28. What will be the effect on accounting equation if cash is invested by the owner in business?

    1. Increases cash and decreases equity
    2. Increases cash and increases equity
    3. Decreases cash and increases equity
    4. Decreases cash and increases dividends

29. An accounting system in which risk of fraud or its non discovery is less is known as:

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

30. Which of the following should be shown on debit column of Trial Balance by considering the balance as normal?

    1. Sales on cash basis
    2. Sales on credit basis
    3. Utility expenses
    4. Creditors/payables

31. Which of the following particular is NOT included in journal voucher?

    1. Name of organization
    2. Bank receipt number
    3. Debit amount
    4. Credit amount

32. The expenses which are NOT paid out of Gross Profit is classified as:

    1. Direct Expenses
    2. General Expenses
    3. Financial Expenses
    4. Selling Expenses

33. What will be debited, If Mr. “A” started business with Rs. 2, 00,000.

    1. Capital account
    2. Cash account
    3. Mr. A’s account
    4. Business account

34. 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 book value of machine after four years using straight line method?

    1. Rs.75, 000
    2. Rs.40, 000
    3. Rs.55, 000
    4. Rs.100, 000

35. Which would be the value of Total Factory Cost, if cost of raw material, direct labor, and manufacturing overhead are Rs.80,000, Rs.50,000, and Rs.60,000 respectively?

    1. Rs. 130,000
    2. Rs. 110,000
    3. Rs. 140,000
    4. Rs. 190,000

36. Factory overhead cost = Power & fuel cost + ________.

    1. Direct labor cost
    2. Direct material cost
    3. Indirect material cost
    4. Other direct cost

37. Budget is a plan of income, expenses & other financial operations for:

    1. Current period
    2. Future period
    3. Past period
    4. None of the given

38. When closing stock is given in trial balance, then it will effect:

    1. Trading account only
    2. Balance sheet only
    3. Owner's equity only
    4. Both Trading account and Balance sheet

39. The proper classification of Cost of Goods Sold account is:

    1. Assets
    2. Expenses
    3. Revenues
    4. Liabilities

40. Find out the missing value of an Accounting Equation with the help of given data: Furniture Rs. 90,000 Cash Rs.100, 000 Debtors Rs.10, 000 Other Assets Rs. 1,000 Owner’s equity Rs. 90, 000 Liaibilities?

    1. Rs. 201,000
    2. Rs. 111, 000
    3. Rs. 290, 000
    4. Rs. 291, 000

41. Which of the following is a liability of the business?

    1. Prepaid insurance expense
    2. Depreciation
    3. Rent received but not yet earned
    4. Drawings

42. How many directors are there in the private limited company:

    1. 1
    2. 2
    3. 3
    4. 4

43. In the partnership business, all of the following statements are true except which of the following?

    1. a partnership business is much like that of a proprietorship
    2. if the partnership business does not specify otherwise, profits will be shared equally by the partners
    3. The liability of the partner is limited
    4. there is no partnership income tax, the individual partners pay personal income tax on their portion of partnership profits

44. ________ is the basic part of an item, which is processed to make a complete item:

    1. Factory overhead
    2. Raw material
    3. Finished goods
    4. Work in process

45. Select the most suitable equation which properly represents the derivation of fundamental Accounting Equation.

    1. Assets = Owner’s Equity
    2. Assets + Liabilities = Owner’s Equity
    3. Cash = Assets
    4. Assets – Liabilities = Owner’s Equity

46. Under perpetual system of recording inventory, purchase of inventory is debited to ________.

    1. Inventory purchase account
    2. Debtors account
    3. Purchase account
    4. Bank account

47. Which of the following is / are the particular/s of a cash book? (1) Date of transaction (2) Account title (3) Amount

    1. 1 only
    2. 1 & 2 only
    3. 1 & 3 only
    4. 1, 2 & 3

48. Outsider’s claim against the assets of the business is called:

    1. Capital
    2. Liability
    3. Expense
    4. Income

49. A payables ledger control account had a closing balance of Rs.9,000. A credit sales of Rs. 500 had been omitted to record in this control account. What should be the correct balance of payables control account?

    1. Rs. 10,000 credit
    2. Rs. 8,000 credit
    3. Rs. 9,000 credit
    4. Rs. 8,500 credit

50. In which of the following statement/s closing stock is/are shown?

    1. Profit and loss account
    2. Balance sheet
    3. Income statement
    4. All of the given

51. Opening direct material inventory is adjusted with ________ of direct material, to calculate the cost of sales.

    1. Liabilities
    2. Sales
    3. Income
    4. Purchases

52. ABC & Co. received dividend on shares. Which of the following accounts would be affected from this transaction? I) Assets II) Liabilities III) Expenses IV) Revenues

    1. I and IV
    2. I and II
    3. II and III
    4. I and III

53. In a manufacturing concern, rent of office building is included in ________.

    1. Preliminary expense
    2. Cost of sales
    3. Operating expense
    4. Cost of goods sold

54. What is the next step to Journalizing in Accounting cycle?

    1. Recording
    2. Posting
    3. Balancing
    4. Analyzing

55. Budget is another name of __________ in Accounting.

    1. Guest Strategy
    2. Statement of Cash Flow
    3. Financial Forecast
    4. Expected life of Asset

56. General reserves are shown in:

    1. Profit & loss account
    2. Balance sheet
    3. Cash flow statement
    4. Bank statement

57. Debts that are not collectable and wothless to the creditor are known as:

    1. Bad debts
    2. Good debts
    3. Doubtful debts
    4. Provision for doubtful debts

58. The entry for Revaluation of an asset, in case of gain on revaluation will be:

    1. Debit: Revaluation Reserve A/c Credit: Cost of Asset A/c
    2. Debit: Revaluation Reserve A/c Credit: Accumulated Depreciation A/c
    3. Debit: Cost of Asset A/c Credit: Revaluation Reserve A/c
    4. Debit: Profit & Loss A/c Credit: Cost of Asset A/c

59. Consider the following data: Particulars Rs. Assets 99,500 Owner's equity 50,500 Liabilities?

    1. Rs. 49,000
    2. Rs. 55,000
    3. Rs. 125,000
    4. Rs. 115,700

60. A receivables ledger control account had a closing balance of Rs.9,000. Cash sales of Rs. 500 had been omitted to record in this control account. What should be the correct balance of receivables control account?

    1. Rs. 9,000 debit
    2. Rs. 8,000 debit
    3. Rs. 8,500 debit
    4. Rs. 9,500 debit

61. Find out the missing value of an Accounting Equation with the help of given data: Furniture Rs. 90,000 Cash Rs.100, 000 Debtors Rs.10, 000 Other Assets Rs. 1,000 Owner’s equity Rs. 90, 000 Liabilities?

    1. Rs. 201,000
    2. Rs. 111, 000
    3. Rs. 290, 000
    4. Rs. 291, 000

62. Which of the following is CORRECT if closing stock is only given in trial balance?

    1. It has been already been deducted from purchases
    2. It will not be shown in credit side of trading account
    3. It will be shown in Balance Sheet
    4. All of the given

63. Which of the following is the "right issue" of shares:

    1. shares issued to the general public for subscription
    2. shares issued to the subscribers of the company
    3. shares issued to the existing shareholder in proportion to the current shares held by the shareholders
    4. shares issued to the directors of the company

64. Inventory is considered a current asset because it:

    1. Often reflects the most current trends and styles
    2. Was purchased during the current year, usually
    3. Will be converted into cash in the course of the company's operating cycle
    4. Can be returned to the supplier for a cash refund

65. Which of the following is the example of current liability?

    1. Notes payable
    2. Notes receivable
    3. Accounts receivable
    4. Prepaid expenses

66. Discount received from a creditor is Debited under main head:

    1. Assets
    2. Liabilities
    3. Expenses
    4. Income

67. 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

68. 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

69. 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

70. Cost of goods manufactured + opening finished goods – ending finished goods =?

    1. Total factory cost
    2. Cost of goods sold
    3. Prime cost
    4. Conversion cost

71. An amount of Rs. 200 received from Mr. "P" but credited to Mr. "Q" would affect:

    1. Accounts of P & Q
    2. Only Cash Account
    3. Only P’s account
    4. Only Q’s account

72. Consider the following data: Particulars Rs. Assets? Owner's equity 35,000 Liabilities 90,000

    1. Rs. 35,000
    2. Rs. 55,000
    3. Rs. 1, 25,000
    4. Rs. 1, 05,000

73. "Share Premium" account is which type of the reserve:

    1. general reserve
    2. capital reserve
    3. specific reserve
    4. None of the given

74. Total depreciation of an asset can not exceed its:

    1. Scrap value
    2. Residual value
    3. Market value
    4. Depreciable value

75. Which one of the following is INCORRECT about closing Stock?

    1. It is added into current assets
    2. It is deducted from Material available for use
    3. It becomes opening stock of next year
    4. It reduces the resources of business

76. ABC & Co. purchased office equipment on account. Which of the following accounts would be affected from this transaction? I) Assets II) Liabilities III) Expenses IV) Revenues

    1. I and IV
    2. II and III
    3. I and II
    4. III and IV

77. Which of the following is a Revenue receipt?

    1. Purchase of a building
    2. Sales revenue
    3. Long term loan from bank
    4. Payment of salaries

78. Which of the following particular/s is/are included in payment voucher?

    1. Name of organization
    2. Cash payment
    3. Date
    4. All of the given

79. A Debtor Control Account is a part of:

    1. Double Entry book keeping system
    2. Single entry book keeping system
    3. Cash accounting system
    4. All of the given

80. All of the following are Non-commercial (Non-Profit Oriented) organizations, EXCEPT:

    1. NGO's (Non-government Organizations)
    2. Trusts
    3. Limited Companies
    4. Societies

81. A company’s merchandise, raw materials, and finished and unfinished products which have not yet been sold are known as:

    1. Sales
    2. Purchases
    3. Inventory
    4. Work in process

82. Which of the following should be credited on sale of completed goods on credit basis in manufacturing concern?

    1. Debitors account
    2. Sales account
    3. Creditors account
    4. Cash account

83. In a manufacturing concern, salary of supervisor is included in ________.

    1. Cost of goods sold
    2. Administrative expense
    3. Operating expense
    4. Selling expenses

84. Which of the following is TRUE about a merchandising company?

    1. A merchandising company's business is to buy and sell products.
    2. A merchandising company must use the perpetual system to account for merchandising inventory.
    3. A merchandising company's business is to provide services.
    4. None of the given

85. An accounting system is used by a business to:

    1. Analyze transactions
    2. Handle routine bookkeeping tasks
    3. Structure information
    4. All of the given

86. In accounting, which of the following account will be credited if the bad debts are recovered in cash?

    1. Cash a/c
    2. Bad debt recovered a/c
    3. Doubtful debts a/c
    4. Provision for bad debts a/c

87. The "provisions for bad debt" account is:

    1. asset account
    2. contra-asset account
    3. expense account
    4. liability account

88. The proper classification of inventory account is:

    1. Assets
    2. Expenses
    3. Revenues
    4. Expenses

89. Under the diminishing balance method, depreciation is calculated on:

    1. The original cost
    2. The scrap value
    3. Book value
    4. Both original cost and Scrap value

90. Depriciation is mainly a process of ________ of cost of Fixed Asset over the useful life.

    1. Allocation
    2. Valuation
    3. Calculation
    4. None of the given

91. Salaries expenses of Rs.5,000 is recorded as Rs. 500. What will be its effect on net profit?

    1. Understated by Rs. 4,500
    2. Overstated by Rs. 5,000
    3. Overstated by Rs. 4,500
    4. No effect

92. Loss on the sale of plant and machinery should be written off against:

    1. Sales premium account
    2. Depreciation fund account
    3. Sales account
    4. Plant and machinery

93. The amount of depreciation charged on Furniture will be debited to:

    1. Furniture Account
    2. Depreciation Account
    3. Accumulated Depreciation A/c
    4. Cash Account

94. What is nature of Capital account?

    1. Debit
    2. Credit
    3. Expenses
    4. Loss

95. Following information is extracted from Mr. A’s balance sheet: Cash Rs.100 Accounts Receivable 500 Accounts Payable 2 00 Bank Loans 1,000 Based on the information provided, what are Mr. A’s assets?

    1. Rs.200
    2. Rs. 600
    3. Rs. 900
    4. Rs. 1700

96. If cost of sales is Rs. 95,000, income from sales Rs. 200,000 and operating expenses Rs. 300,000. What will be net result?

    1. Rs. 1, 95,000 Losses
    2. Rs. 1, 95,000 Profits
    3. Rs 1, 05,000 Profits
    4. Rs1, 05,000 Losses

97. The total of all costs incurred to convert raw material into finished goods is known as:

    1. Prime cost
    2. Conversion cost
    3. Sunk cost
    4. Opportunity cost

98. A minor repair to a photocopy machine was paid in cash. Correct entry was made to cash account but no entry was made to other account. What will be the credit rffect of journal entry to rectify this error, if there is suspense account in trial balance?

    1. Photocopy machine repair account
    2. Suspense account
    3. Photocopy machine account
    4. Cash account

99. 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

100. Which of the following is/are the example/s of Intangible Asset?

     1. Copy rights
     2. Good will
     3. Patent rights
     4. All of the given

101. When there is no disagreement between cash book and bank statement then the favourable balance as per cash book (bank column) can be a:

     1. Debit balance as per cash book
     2. Credit balance as per cash book
     3. Debit balance as per bank statement
     4. Unfavourable balance as per bank statement

102. The unexpired portion of direct cost is treated as:

     1. Liability
     2. Income
     3. Cost
     4. Expense

103. Generally Accepted Accounting Principles (GAAP) are necessary because financial statements

     1. are publicly available
     2. should be standardized
     3. should be understandable
     4. All of the given

104. Partial Payment of loan from bank is made Rs 50000. The effects of this transaction are:

     1. Decrease in Asset Increase in Asset
     2. Decrease in Liability Increase in Asset
     3. Decrease in Liability Decrease in Asset
     4. Decrease in Liability Increase in Expense

105. Which of the following should NOT be recorded in journal voucher?

     1. Receipt of cash
     2. Depreciation
     3. Charge of interest payable
     4. Correction of errors

106. 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

107. Machinery purchased on Credit for Rs 15000 will have an effect on which of the following accounts?

     1. Purchases Account & Accounts Payable Account
     2. Machinery Account & Cash Account
     3. Purchases Account & Cash Account
     4. Machinery Account & Accounts Payable Account

108. In a trading concern, salaries of marketing staff is included in ________.

     1. Cost of sales
     2. Operating expenses
     3. Preliminary expense
     4. Cost of goods sold

109. The proper classification of Suppliers account is:

     1. Assets
     2. Expenses
     3. Revenues
     4. Liabilities

110. A transaction in which Cash A/c and Bank A/c are involved, is recorded on both the sides of Double Column Cash Book, it is called _________.

     1. Rectifying Entry
     2. Adjusting Entry
     3. Contra Entry
     4. Closing Entry

111. Which of the following would be debited for incurred expenses to complete the fixed asset whose payment is made through cash?

     1. Relevant fixed asset account
     2. Cash account
     3. Capital work in progress account
     4. Incomplete fixed asset account

112. Which of the following should be credited on sale of completed goods on cash basis in manufacturing concern?

     1. Material account
     2. Sales account
     3. Finished goods account
     4. Cash account

113. Which of the following is NOT correct?

     1. Decrease in Assets will be debit
     2. Decrease in Liabilities will be debit
     3. Decrease in Expenses will be credit
     4. Decrease in Revenue will be debit

114. ABC & Co. purchased a typewriter for Rs. 5,000 and paid by cheque. Which of the following accounts would be affected from this transaction? I) Assets II) Liabilities III) Expenses IV) Revenues

     1. I and IV
     2. I and II
     3. II and III
     4. I only

115. The amount of depreciation charged under straight line method:

     1. Decreases every year
     2. Remains constant every year
     3. Increases every year
     4. First increases than decreases

116. The proper classification and normal balance of accounts receivables account is:

     1. Assets
     2. Liabilities
     3. Revenues
     4. Expenses

117. Expenses are also known as:

     1. Prepaid expense
     2. Expired portion of cost
     3. Cost incurred during production
     4. Cost incurred on asset acquired

118. Which of the following is/are the function of financial accounting?

     1. Recording
     2. Reporting
     3. Posting
     4. All of the given

119. Following are the parts of the debtors control account except:

     1. credit sales
     2. sales return
     3. cash sales
     4. cash/checque received

120. Which of the following is Not an Asset Account?

     1. Plant & Machinery
     2. Loan to XYZ co.
     3. Cash at Bank
     4. Loan from ABC co.

121. Find out the missing value of an Accounting Equation with the help of given data: Owner’s equity Rs. 22,500 Total Liabilities Rs. 80, 385 Cash Rs. 1,000 Bank Rs. 2,000 Debtors Rs. 500

     1. Rs. 102,885 other assets
     2. Rs. 102,885 current liabilities
     3. Rs. 99,885 current liabilities
     4. Rs. 99,385 other assets

122. Which of the following should be shown on credit side of cash account?

     1. Collection from customers
     2. Sales on cash basis
     3. Sales on cedit basis
     4. Payment of loan

123. ABC co. has a capital of Rs. 100,000, Long Term Liabilities Rs. 50,000, net profit during the year Rs. 15,000 and the amount of total assets is Rs 175,000. What will be the amount of Current Liabilities?

     1. Rs. 20,000
     2. Rs. 150,000
     3. Rs. 10,000
     4. Rs. 25,000

124. The proper classification of fees earned account is:

     1. Assets
     2. Liabilities
     3. Revenues
     4. Expenses

125. Prepayments are included in:

     1. current assets
     2. non current assets
     3. sales
     4. other income

126. Under perpetual system of recording inventory, purchase of inventory is recognized as ________.

     1. Income
     2. Admin Expense
     3. Selling Expense
     4. Asset

127. Under IAS 2, material available for use in the production process is known as:

     1. Expenses
     2. Costs
     3. Fixed assets
     4. Inventories

128. Salaries paid to employees Rs. 15,000. The effect of this transaction would be:

     1. An increase in Asset Decrease in Asset
     2. Decrease in Liability Decrease in Asset
     3. Increase in Expense Decrease in Asset
     4. Decrease in Expense Decrease in Capital

129. The process of transferring journal entry information to the ledger is called:

     1. Journalizing
     2. Posting
     3. Balancing
     4. Analyzing

130. In a partnership business, there's a profit of 450,000 and A, B, and C are partners with profit/loss sharing ratio of two-ninth, three-ninth and four-ninth respectively, then how much would be the profit of the each partner?

     1. A: 75,000, B: 170,000, C: 205,000
     2. A: 70,000, B: 175,00, C: 205,000
     3. A:100,000, B: 150,000, C: 200,000
     4. A: 105,000, B: 145,000, C: 200,000

131. 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

132. Which of the following is CORRECT for Provision for Doubtful Debts?

     1. It is shown in balance Sheet
     2. It is a definite loss to the business
     3. It is not shown in balance sheet
     4. No provision is necessary for it

133. Bank Reconciliation Statement is:

     1. A memorandum statement
     2. A ledger account
     3. A part of cash book
     4. A part of journal

134. Amount generated from sales in a business is called:

     1. Income
     2. Net Income
     3. Gross Profit
     4. Operating profit

135. Goods of Rs. 1,000 purchased from Mr. "A" were recorded in sales book. The rectification of this errer will:

     1. Increase the gross profit
     2. Reduce the gross profit
     3. Have no effect on gross Profit
     4. None of the given

136. Net profit = Gross profit - _________

     1. Operating Expenses
     2. Product Cost
     3. Deferred Expenses
     4. Direct Cost

137. What will be debited, if Mohsin commenced business with cash?

     1. Cash account
     2. Capital account
     3. Drawings account
     4. Proprietor account

138. Which of the following account summarizes the profitability of business for a specific accounting period?

     1. Profit & Loss account
     2. Cash flow statement
     3. Receipt & Payment account
     4. Balance Sheet

139. In a single entry system, it is NOT possible to prepare:

     1. Trial balance
     2. Statement of affairs
     3. Balance Sheet
     4. Sales accounts

140. A statement which is prepared at the end of financial year of a manufacturing concern showing a brief summary of the whole process is called as:

     1. Statement of owner’s equity
     2. Balance Sheet
     3. Cost of Goods sold statement
     4. Income Statement

141. A sum of Rs. 8,000 paid as wages to repair the office furniture should be debited to:

     1. Repair Account
     2. Furniture Account
     3. Cash Account
     4. Office expense Account

142. Which of the following docmuent has the conclusive evidence that the seperate legal entity has been formed:

     1. memorandum of association
     2. articles of association
     3. certificate of commencement of business
     4. certificate of incorporation of the business

143. Which of the following is the first book to record a transaction?

     1. Trial Balance
     2. Journal
     3. Trial Balance
     4. Balance Sheet

144. For every debit there must be a credit with an equal amount. This is also called as:

     1. Separate Entity Concept
     2. Single Entry Book-Keeping
     3. Matching Concept
     4. Dual Aspect Concept

145. A transaction that has been recorded in wrong account of the same class instead of being recorded in the right account, this is called:

     1. Error of Omission
     2. Error of Commission
     3. Error of Principle
     4. Error of Original entry

146. According to diminishing balance method of charging depreciation:

     1. The amount of depreciation remains constant every year
     2. The rate percent as well as amount reduces every year
     3. The amount of depreciation reduces year to year
     4. The rate percent of depreciation declines year to year

147. The first step in the posting process is:

     1. Recording the ledger account number in the journal
     2. Recording the date in the ledger account
     3. Recording the journal page number in the ledger account
     4. Recording the explanation in journal

148. If adjusted bank book balance is required before preparation of bank reconciliation statement, which of the following items need NOT to be adjusted?

     1. Interest on bank deposit was credited by bank but not debited in bank book Rs. 1,000
     2. Cheques deposited but not cleared
     3. Direct payment by a customer into the bank
     4. Bank charges deducted by the bank

149. Normally single entry book keeping is followed by the:

     1. Small businesses only
     2. Governments only
     3. Large scale businesses only
     4. Both Small businesses and Governments

Select a course code for Objective Questions:

ACC311 ACC501 BIF101 BIF401 BIF501 BIO101 BIO201 BIO202 BIO203 BIO204 BIO301 BIO302 BIO303 BIO401 BIO503 BNK603 BT101 BT201 BT301 BT302 BT401 BT402 BT403 BT404 BT405 BT406 BT501 BT504 BT505 BT604 CHE201 CHE301 CS001 CS101 CS201 CS202 CS204 CS301 CS302 CS304 CS311 CS401 CS402 CS403 CS408 CS501 CS502 CS504 CS506 CS508 CS601 CS602 CS604 CS605 CS607 CS609 CS610 CS614 CS707 CS710 ECO401 ECO402 ECO403 ECO404 EDU302 EDU401 EDU402 EDU501 EDU601 ENG101 ENG201 ENG301 ENG501 FIN611 FIN624 FIN625 ISL201 IT430 MCM101 MCM301 MGMT623 MGT101 MGT211 MGT301 MGT401 MGT402 MGT501 MGT502 MGT503 MGT510 MGT601 MGT603 MKT501 MKT610 MKT630 MTH101 MTH202 MTH302 MTH501 MTH601 MTH634 PAK301 PHY101 PHY301 PSY101 PSY403 PSY502 PSY512 SOC101 SOC301 SOC401 STA301 STA630 STA641 ZOO102 ZOO401 ZOO501 ZOO502 ZOO503 ZOO504 ZOO505 ZOO506 ZOO510 ZOO630

Select a course code for Subjective Questions:

ACC311 CS001 CS101 CS201 CS301 CS607 CS701 CS702 CS703 CS704 CS707 CS708 CS710 CS711 CS718 CS721 CS724 ECO401 ECO403 ENG101 ENG301 MGT703 MTH501 STA301