Financial Accounting (MGT101)

1. 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

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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

14. 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

15. 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

16. 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

17. 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

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

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

19. The proper classification of Suppliers account is:

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

20. 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

21. 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

22. 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

23. 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

24. 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

25. 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

26. 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

27. 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

28. 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

29. 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

30. 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

31. 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

32. 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

33. ________ 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

34. 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

35. 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

36. 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

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

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

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