MGT101 Final Term MCQs 2026 by VUBuddy

Q1. If an asset is exchanged with another asset and commercial substance does not exist, the cost of asset taken through exchange is __________ of asset given up.

1. Market value
2. Fair value
3. Carrying value
4. Purchase price

Correct answer: Carrying value

Q2. A receivables ledger control account had a closing balance of Rs.9,000. A dishonored cheque of Rs. 500 had account?

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

Correct answer: Rs. 9,500 debit

Q3. All of the following items may appear in Trade receivable control account EXCEPT:

1. Credit Purchases
2. Discount allowed
3. Bad debts
4. Cash received from debtors

Correct answer: Credit Purchases

Q4. _________________ is debited for closing the commission income for the period.

1. Accrued commission
2. Commission expense
3. Commission income
4. Income statement

Correct answer: Commission income

Q5. All of the following items may appear in Trade payable control account EXCEPT:

1. Credit purchases
2. Discount received
3. Cash paid to creditors
4. Cash purchases

Correct answer: Cash purchases

Q6. In case of writing off debtors as bad debt, ____________ is debited.

1. Provision account
2. Payable account
3. Bad debts account
4. Receivable account

Correct answer: Bad debts account

Q7. 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. 9,000 credit
2. Rs. 8,000 credit
3. Rs. 10,000 credit
4. Rs. 8,500 credit

Correct answer: Rs. 9,000 credit

Q8. _________________ is credited for closing the commission income for the period.

1. Income statement
2. Commission expense
3. Commission income
4. Accrued commission

Correct answer: Income statement

Q9. All of the following are the deprecation methods for tangible fixed assets EXCEPT:

1. Sum of years digit method
2. Number of service hours method
3. Fair value method
4. Number of units output method

Correct answer: Fair value method

Q10. While preparing a Debtors Control Account, Credit side posted items cause:

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

Correct answer: Decrease in debtors’ balance

Q1. Advance receipt at the end of the period is treated as:

1. Liability
2. Drawings
3. Assets
4. Expenses

Correct answer: Liability

Q2. ________________ is charged to profit and loss account.

1. long term loan
2. Capital
3. Drawings
4. Bad debts account

Correct answer: Bad debts account

Q3. _______________ is posted in credit side of debtors account.

1. Trade discount
2. Balance b/f of debtors
3. Purchases return
4. None of the given options

Correct answer: None of the given options

Q4. All of the following items appear on debit side of Trade payable control account EXCEPT:

1. Credit purchases
2. Discount received
3. Cash paid to creditors
4. Purchases return

Correct answer: Credit purchases

Q5. All of the following items may appear in Trade payable control account EXCEPT:

1. Discount received
2. Bad debts
3. Purchases return
4. Cheques paid to creditors

Correct answer: Bad debts

Q6. All of the following items appear on debit side of Trade receivable control account EXCEPT:

1. Credit sales
2. Cheques dishonored
3. Interest charged to debtors
4. Discount allowed

Correct answer: Discount allowed