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MGT101- Financial Accounting

► Rs. 4, 14,000

► Rs. 4, 25,000

► Rs. 3, 86,000

► Rs. 61,000

► Rs. 1, 29,000

► Rs. 1, 50,000

► Rs. 1, 21,000

► Rs. 71,000

Firms charge depreciation each year:

► To ensure there is enough money in the firm to replace the asset

► To spread the cost of the asset over its working life

► To reduce the profit and thus reduce the dividends they can pay to share holders

► Because the law states they must be reduced

Depreciation arises because of:

► Fall in the market value of an asset

► Fall in the value of money

► Physical wear and tear

Question No: 5 ( Marks: 1 ) - Please choose one

The assets which have a limited useful life are termed as:

Question No: 6 ( Marks: 1 ) - Please choose one

Accountancy covers which of the following area(s):

Question No: 7 ( Marks: 1 ) - Please choose one

Bank Reconciliation Statement is prepared by:

► Bankers

► Accountant of the business

► Statutory auditor

► Manger

___________ is the detail of transaction in one's account provided by the bank.

► Bank statement

► Bank reconciliation statement

► Income statement

► Financial statement

If you start with cash book favorable balance in Bank Reconciliation Statement, which item will be added?

► Cheques omitted to be deposited into bank

► Any amount directly collected by bank on behalf of customer but not recorded in cash book

► Debit side of cash book was overcast

_________ is the amount for which an asset could be exchanged between knowledgeable willing parties in an arm’s length transaction.

► Present value

► Fair value

► Book value

► Residual value

Consider the following:

Eighty-five units were sold, what is the value of the ending inventory using the FIFO method of inventory costing?

Question No: 12 ( Marks: 1 ) - Please choose one

Rate of depreciation= 40%

The book value of machine after one years using diminishing balance method is ?

► Rs.86, 400

► Rs. 1, 44,000

► Rs. 2, 40,000

► Rs. 51,840

► Rs.25, 000 profit

► Rs. 75,000 loss

► Rs. 15,000 profit

► Rs. 1, 00,000 profit

What would be the value of conversion cost, if the cost of material consumed during the month is Rs. 5,000, labor cost incurred is Rs. 2,000 and the factory over head cost is Rs. 1,000?

► Rs. 3,000

► Rs. 8,000

► Rs. 7,000

► Rs. 5,000

Which one of the following is CORRECT about the closing stock?

► It appears in the assets side of a balance sheet

► It decreases the value of cost of goods sold

► It becomes opening stock of next year

► All of the given option

Which of the following particulars are included in the specimen of a bank receipt voucher?

1) Name of the organization

2) Bank code

3) Date of transaction

► (1) & (2) only

► (1) & (3) only

► (2) & (3) only

► (1), (2) & (3)

Which of the following is an alternate term which can be used for “Capital”?

► Liability

► Owner’s net worth

► Working capital

► Asset

Question No: 18 ( Marks: 1 ) - Please choose one

Which of the following statement is TRUE about the positive working capital of a company?

► It shows sound position of a company

► It shows that company has sufficient current assets to meet current liabilities

► It shows that current assets are greater than current liabilities

Question No: 19 ( Marks: 1 ) - Please choose one

In which of the following condition a company will have positive working capital?

► If current assets > current liabilities

► If current Assets <>

► If current assets = current liabilities

► If current assets < current liabilities

Question No: 20 ( Marks: 1 ) - Please choose one

Which of the following is NOT an example of Current Asset?

► Bank Overdraft

► Accounts Receivable

► Notes Receivable

► Prepaid Expenses

Question No: 21 ( Marks: 1 ) - Please choose one

Which of the following is NOT an item of a Balance Sheet?

► Accounts Receivable

► Accounts Payable

► Sales Revenue

► Marketable Securities

Question No: 22 ( Marks: 1 ) - Please choose one

Which of the following statement is NOT TRUE about Current liabilities?

► These are due within one year

► These are short-term loans

► These are consist of all debts, payable after 12 months

► In working capital, these are deducted from current assets

Question No: 23 ( Marks: 1 ) - Please choose one

Which of the following shows summary of a company's financial position at a specific date?

► Profit & Loss Account

► Cash Flow Statement

► Balance Sheet

► Income & Expenditure Account

Question No: 24 ( Marks: 1 ) - Please choose one

What type of expenses are paid out of Gross Profit?

► Selling Expenses

► General Expenses

► Financial Expenses