MGT101 Quiz 1 by Sahirullah

MGT101 QUIZ 01 SOLVED BY SAHIRULLAH

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Q1. Excess of expenses over income in a specified accounting period is called:

Profit Income Surplus

Loss ✔

Q2. When total liabilities are subtracted from total assets the remaining amount is known as:

Cost of goods sold Expenses

Equity or Shareholders' equity ✔

None of the given options

Q3. Which voucher is used as proof that creditor Mr. A's outstanding amount has cleared?

Cash receipt voucher Journal voucher

Cash payment voucher ✔

None of the given options Financial Accounting - Complete Revision Guide

Q4. Commission earned account will fall under which classification of accounts?

Expenses

Revenues ✔

Assets

Q5. Which of the following is TRUE regarding Discount allowed to a debtor?

It is a revenue It is a liability

It is an expense ✔

It is an asset

Q6. Which of the following can be used in the calculation of cost of goods sold?

Purchases Closing stock Opening stock

All of the given items ✔

Q7. Owner's Equity = ?

Capital + drawings Capital + expenses

Capital + profits ✔

Capital – revenues

Q8. Which of the following is WRONG?

Nature of Expenses is Debit

Nature of Liabilities is Debit ✔

Nature of Assets is Debit Nature of Owners' Equity is Credit

Q9. Which of the following is used to record the business transaction in the books of accounts as a book of first and prime entry?

Balance sheet Income statement General ledger

General journal ✔

Q10. The fees earned account will fall under which of the following classification of accounts?

Expenses

Revenues ✔

Assets

MGT101 Financial Accounting | Solved by Sahirullah