MGT101 Quiz Solution

Question # 1 of 15 ( Start time: 10:58:23 AM ) Total Marks: 1
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)
Select correct option:

Cash account
Furniture account
Vehicle account
Capital account



Question # 2 of 15 ( Start time: 10:58:49 AM ) Total Marks: 1
Which of the following is used to determine the cost of goods sold?
Select correct option:

Beginning inventory + Purchases – Work in Process
Beginning inventory + Purchases - Sales
Beginning inventory + Purchases - Ending inventory
Ending inventory + Purchases - Beginning Inventory



Question # 3 of 15 ( Start time: 10:59:11 AM ) Total Marks: 1
Which of the following is (are) item (s) of cost of goods sold statement?
Select correct option:

Purchase of raw material
Any tax/freight paid on purchases
Any expense incurred on carriage/transportation of raw material purchased items
All of the given options




Question # 4 of 15 ( Start time: 10:59:46 AM ) Total Marks: 1
Find out the missing value of an Accounting Equation with the help of given data: Total Assets Rs. 34,500 Accounts payable Rs. 1, 000 Other liabilities Rs. 11,500 Owner’s equity ?
Select correct option:

Rs. 22,000
Rs.24, 000
Rs. 45,000
Rs. 46,000


Question # 5 of 15 ( Start time: 11:00:23 AM ) Total Marks: 1
Expenditure incurred in acquiring the patent right for the business is an example of:
Select correct option:

Revenue expenditure
Capital expenditure
Deferred revenue expenditure
Administrative expenditure



Question # 6 of 15 ( Start time: 11:00:46 AM ) Total Marks: 1
Any expense that gives benefit for a period of less than twelve months is called ________.
Select correct option:

Capital Expense
Revenue Expense
Revenue Receipt
Deferred Expense




Question # 7 of 15 ( Start time: 11:01:21 AM ) Total Marks: 1
In accounting accumulated depreciation is:
Select correct option:

Treated as a reserve
Treated as a contra asset
Treated as a surplus
Treated as an expense

Question # 8 of 15 ( Start time: 11:02:26 AM ) Total Marks: 1
What will be debited, if business sold goods for Rs.10, 000 on credit?
Select correct option:

Cash account
Sales account
Accounts receivable account
Purchases account


Question # 9 of 15 ( Start time: 11:02:53 AM ) Total Marks: 1
Depreciation arises because of:
Select correct option:

Fall in the market value of an asset
Fall in the value of money
Physical wear and tear
All of the given options



Question # 10 of 15 ( Start time: 11:03:08 AM ) Total Marks: 1
Under the diminishing balance method, depreciation is calculated on:
Select correct option:

The original cost
The scrap value
Book value
Both original cost and Scrap value



Question # 11 of 15 ( Start time: 11:04:10 AM ) Total Marks: 1
Fixed Asset (WDV) + working capital =?
Select correct option:

Total assets Employed
Total liabilities
Total assets
Current Assets


Question # 12 of 15 ( Start time: 11:05:08 AM ) Total Marks: 1
If cost of sales is Rs. 95,000, income from sales Rs. 200,000 and operating expenses Rs. 100,000. What will gross profit?
Select correct option:

Rs. 5,000
Rs. 95,000
Rs. 1, 00,000
Rs.1, 05,000



Question # 13 of 15 ( Start time: 11:05:55 AM ) Total Marks: 1
Which of the following is an example of direct materials cost?
Select correct option:

Production worker’s wages
Depreciation expenses
A piece of wood for the production of chair
Polish and finishing material for chair



Question # 14 of 15 ( Start time: 11:06:34 AM ) Total Marks: 1
The goal of reconciliation is all of the flowing EXCEPT:
Select correct option:

To discover the various things the bank has not done in the pass book but recorded in cash book
To discover anything that bank has passed through but the cash book has not
To put right anything that is wrong & draws an explanation for the differences
To discover any discrepancy that is due to timing rather than error




Question # 15 of 15 ( Start time: 11:07:14 AM ) Total Marks: 1
The balance in drawings account is transferred to which of the following at the end of the year.
Select correct option:

Capital account
Shareholder account
Cash account
Expense account

Another Quiz:-

Question # 1 of 15 ( Start time: 11:09:48 AM ) Total Marks: 1
An accounting system is used by a business to:
Select correct option:

Analyze transactions
Handle routine bookkeeping tasks
Structure information
All of the given options


Question # 2 of 15 ( Start time: 11:10:11 AM ) Total Marks: 1
Which of the following particular is NOT included in journal voucher?
Select correct option:

Name of organization
Bank receipt number
Debit amount
Credit amount

Question # 3 of 15 ( Start time: 11:11:07 AM ) Total Marks: 1
Which of the following will be credited, if cash is drawn by Proprietor?
Select correct option:

Proprietor’s drawing
Proprietor’s cash
Proprietor’s capital
Proprietor’s income

Question # 4 of 15 ( Start time: 11:12:22 AM ) Total Marks: 1
___________= Gross profit < Operating Expenses
Select correct option:

Net Profit
Gross Profit
Net Loss
Gross Loss


Question # 5 of 15 ( Start time: 11:13:40 AM ) Total Marks: 1
A debit balance in the Bank Statement indicates:
Select correct option:

Cash at bank
Bank overdraft
Overpayment to creditors
Cash in hand

Question # 6 of 15 ( Start time: 11:14:32 AM ) Total Marks: 1
Which of the following is NOT based on the concept of double entry book keeping system?
Select correct option:

Subsidiary ledgers
Creditors Control Accounts
Debtors Control Accounts
All of the given options

Question # 7 of 15 ( Start time: 11:14:53 AM ) Total Marks: 1
Find out the missing value of an Accounting Equation with the help of given data: Total Assets Rs. 34,500 Accounts payable Rs. 1, 000 Other liabilities Rs. 11,500 Owner’s equity ?
Select correct option:

Rs. 22,000
Rs.24, 000
Rs. 45,000
Rs. 46,000

Question # 9 of 15 ( Start time: 11:15:34 AM ) Total Marks: 1
Goods of Rs. 1,000 purchased from Mr. “A” were recorded in sales book. The rectification of this error will:
Select correct option:

Increase the gross profit
Reduce the gross profit
Have no effect on gross Profit
None of the given options

Question # 10 of 15 ( Start time: 11:16:01 AM ) Total Marks: 1
What would be the value of Total Factory Cost, if cost of raw materials, direct labor costs, and manufacturing overhead costs are Rs.80,000, Rs.50,000, and Rs.60,000 respectively?
Select correct option:

Rs.130, 000
Rs.110, 000
Rs.140, 000
Rs.190, 000

Question # 11 of 15 ( Start time: 11:16:35 AM ) Total Marks: 1
Which of the following account(s) would be decreased with a debit?
Select correct option:

Capital
Retained Earnings
Revenues
All of the given options

Question # 12 of 15 ( Start time: 11:17:08 AM ) Total Marks: 1
Cash and other resources that are expected to turn to cash or to be used up within one year of the balance sheet date are called:
Select correct option:

Current liability
Current assets
Fixed assets
Long-term assets


Question # 13 of 15 ( Start time: 11:17:34 AM ) Total Marks: 1
If cost of sales is Rs. 90,000, income from sales Rs. 200,000 and operating expenses Rs. 100,000. What will be net result?
Select correct option:

Rs. 5,000 Losses
Rs.10, 000 Profits
Rs 1, 95,000 Profits
Rs 1, 95,000 Losses

Question # 14 of 15 ( Start time: 11:18:21 AM ) Total Marks: 1
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 ?
Select correct option:

Rs. 201,000
Rs. 111, 000
Rs. 290, 000
Rs. 291, 000

Question # 15 of 15 ( Start time: 11:18:52 AM ) Total Marks: 1
The amount of owner's equity in a business is affected by which of the following?
Select correct option:

The profitability of the business
Investments made in the business by the owner
The amount of dividends paid to stockholders
All of the given options