MGT101 Final Term MCQs 80+ by Brainy Squad

MGT101 80+ FINAL TERM MCQS SPRING 2025 BY BRAINY SQUAD

Q1. It is supposed that on 31st December, 2007, the sundry debtors are amounted to Rs. 40,000. On the basis of past experience, it is estimated that 10% of the sundry debtors are doubtful. Actual bad debts are Rs. 1600. What amount of new provision for doubtful debts will be credited in profit & loss account (1 marks)

1. Rs. 3,600
2. Rs. 4,000 correct
3. Rs1,600
4. Rs.2,400

Correct answer: Rs. 4,000 correct

Q2. Mr. A & B entered into a partnership with an equal investment and equal share in profit or loss. Markup on capital of Mr. A is Rs.2,500 and mark-up on drawings of Mr. B is Rs.2,800. The net income for the year is Rs.95,000. What will be the amount of distributable profit? (1 marks)

1. Rs.89, 700
2. Rs.94, 700
3. Rs.95,300
4. Rs.100,300

Correct answer: Rs.95,300

Q3. or loss. Markup on drawings of Mr. A is Rs.1,500 and of Mr. B is Rs.1,800. The net income for the year is Rs.85,000. What will be the profit share of Mr. B? (1 marks)

1. Rs.42,350
2. Rs.44,150
3. Rs.41,600
4. Rs.40,850

Correct answer: Rs.44,150

Q4. or loss. Markup on capital of Mr. A is Rs.2,000 and markup on drawings of Mr. B is Rs.3,000. The net income for the year is Rs.85,000. What will be the profit share of Mr. B? (1 marks)

1. Rs.40,000
2. Rs.43,000
3. Rs.130,000
4. Rs.133,000

Correct answer: Rs.43,000

Q5. Accumulated depreciation is a ____________ account? (1 marks)

1. Fixed asset
2. Current asset
3. Contra asset
4. Liability

Correct answer: Contra asset

Q6. Which of the following statement is not true regarding the objective of statement of cash flows? (1 marks)

1. It is helpful for decision making by management
2. It is used for reporting the net profit of the period
3. It can be used for estimations for cash flows in future
4. It is used to determine the liquidity of the business

Correct answer: It is used for reporting the net profit of the period

Q7. Short term investments in marketable securities and treasury bills that will mature within ninety days from the date of acquisition, must be classified as: (1 marks)

1. Receivables
2. Receipts from Capital
3. Current and intangible assets
4. Cash equivalents

Correct answer: Cash equivalents

Q8. Which of the following is an example of cash outflow for a company? (1 marks)

1. Cash collected from customers
2. Cash paid for merchandise inventory
3. Writing off an uncollectible accounts receivable
4. Reclassifying accounts payable to notes payable

Correct answer: Cash paid for merchandise inventory

Q9. When the capitals are fixed, which of the following account will be debited for drawings made by a partner? (1 marks)

1. Individual Partner’s Current Account
2. Partner’s Cash Account
3. Partner’s Bank Account
4. Partners Capital Account

Correct answer: Individual Partner’s Current Account

Q10. In Income Statement, both beginning inventory and ending inventory appear in the section of: (1 marks)

1. Cost of goods sold
2. Indirect cost
3. Selling cost
4. Factory over head cost

Correct answer: Cost of goods sold

Q11. XYZ Company has paid up capital of 20,000 shares of Rs. 100 each. The company offers to existing shareholders the right to buy 3 shares of Rs. 100 each at Rs. 125 for every 5 shares held. What would be the number of right shares? (1 marks)

1. 120 right shares
2. 12,000 right shares
3. 15,000 right shares
4. 25,000 right shares

Correct answer: 12,000 right shares