MGT101 Quiz 1 Set 2

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MGT101 Searching file

Manufacturing by Orange Monkey

Q1. Find out the missing value of an Accounting Equation with the help of given data: Owner’s equity Rs. 22,500 Total Liabilities Rs. 80, 385 Cash Rs. 1,000 Bank Rs. 2,000 Debtors Rs. 500

1. Rs. 102,885 other assets
2. Rs. 102,885 current liabilities
3. Rs. 99,885 current liabilities
4. Rs. 99,385 other assets

Q2. What is the next step to Journalizing in Accounting cycle?

1. Recording

b) c) Balancing d) Analyzing

Q3. Which of the following is NOT a characteristic of Joint Stock Company?

1. Separate Legal Entity
2. Limited Liability of shareholders
3. Easy formation
4. Common Seal

Q4. Which one of the following is NOT a feature of sole proprietorship business.

1. Easy Formation
2. Easy Dissolution
3. Unlimited Liability
4. Separate Legal Entity

Q5. Which of the following is NOT considered a part of financial statements?

1. General Journal
2. Balance Sheet
3. Profit and Loss account
4. None of the given options

Q6. Outsider’s claim against the assets of the business is called

1. Capital
2. Expense
3. Liability
4. Cost
5. Income
6. Increase in an expense is recorded on the:

a) b) c) d)

Q9. Which of the following is Not a part of General Ledger?

1. Activity Book
2. Purchase Return Book
3. Purchase Book
4. Sales Book
5. What will be debited, If Mr. “A” started business with Rs. 2, 00,000.

a) b) c) d) Capital account

Mr. A’s account Business account

Q11. What will be debited, if Mohsin commenced business with cash?

a) b) Capital account c) Drawings account d) Proprietor account c) Expense d) Income

7. An expenditure whose benefit is finished or enjoyed immediately is called:
8. Cash book is a part of

Voucher General Journal

Q14. What will be debited, if business sold goods for Rs.10, 000 on credit?

Sales account Accounts receivable account Purchases account

15. A company’s merchandise, raw materials, and finished and unfinished productswhich have not yet been sold are known as:

Sales Purchases Inventory Work in process

Q16. What is nature of Capital account?

Debit Credit Expenses Loss

17. The basic accounting principle/concept according to which business record must be kept General Ledger Trial Balance
18. When income is reduced or decreased, that amount is recorded on:

separate from the personal records of the owner is known as:

Going-concern concept Separate entity principle Realization principle Objectivity principle