MGT101 Midterm Preparation by Buttercup

MGT101 – FINANCIAL ACCOUNTING MOST IMPORTANT 50 MCQS FOR MIDTERM PREPARATION

BY BRAINY SQUAD

Q1. A creditors' control account is used to record all the transactions related to:

1. Credit purchases
2. Cash purchases
3. Credit sales
4. Cash sales

Correct option: A) Credit purchases

Q2. ____is posted in the credit side account.

1. Trade discount
2. Credit purchases
3. Cash purchases
4. Receipts from debtors

Correct option: D) Receipts from debtors

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

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

Correct option: D) Cash received from debtors

Q4. In the case of writing off debtors as bad debt, is credited.

1. Doubtful debts account
2. Payable account
3. Debtors account
4. Provision account

Correct option: A) Doubtful debts account

Q5. Which of the following might be a reason when a Bank Statement shows a greater A than the Cash Book balance"

1. Cheque issued but not yet presented
2. Cheque deposited but not yet credited
3. Unrecorded bank charges in cash book
4. None of the given options

Correct option: A) Cheque issued but not yet presented

Q6. In the case of goods sold on a credit basis. is credited.

1. Payable account
2. Receivable account.
3. Bank account
4. Sales account

Correct option: B) Receivable account. Receivable account

Q7. Which of the following is/are reconciling item(s) that cause disagreement(s) between the cash book and

1. Credit transfer
2. Debts transfer
3. Unpresented cheques
4. All the given options

Correct option: D) All the given options

Q8. In the case of a discount allowed to debtors, is debited.

1. Discount allowed account
2. Trade discount account
3. Receivable account
4. Doubtful debts account

Correct option: A) Discount allowed account

Q9. If the cost of equipment is Rs. 108,000, useful life is 10 years, and its residual value 8,000, then Depreciation for the 3rd year using the straight-line method is… ?

1. Rs. 8.000
2. Rs. 10,000
3. Rs. 8.820
4. Rs. 9.800

Correct option: B) Rs. 10,000

Q10. Which of the following should be debited in the bank statement?

1. Amount withdrawn from the bank
2. Dividend received on behalf of the customer
3. Amount deposited
4. Interest on deposit

Correct option: A) Amount withdrawn from the bank

Q11. Which of the following is considered as a process of maintaining the journal?

Budgeting