MGT101 Quiz 3 by HB

a. Financial expense · b. Cost of sales · c. Operating expense HB · d. Selling expense

Q2. Cost of inventory =

1. Selling Price + Further Costs to Sell
2. Selling Price – Further Costs to Sell
3. Cost of purchase + conversion cost HB PAID QUIZ
4. Cost of purchase - conversion cost

Q3. If a new partner enters into a partnership, the new profit sharing ratio of an existing partner becomes lesser than his old profit sharing ratio; it implies that the old partner is _____________.

1. Gaining
2. Neither gaining nor sacrificing
3. None of the given options
4. Sacrificing HB PAID QUIZ

Q4. Service fee received is a ________________.

1. Capital Expenditure
2. Revenue Expenditure
3. Revenue Receipt HB PAID QUIZ
4. Capital Receipt

Q5. Opening indirect material inventory is adjusted with ____________ of indirect material, to calculate the cost of sales.

1. Liabilities
2. Purchases HB PAID QUIZ
3. Sales
4. Income

Q6. All of the following can be the reason of firm’s goodwill EXCEPT:

1. Good customer relationship
2. Unskilled employees HB PAID QUIZ
3. Strategic location
4. Good reputation

Q7. Mr. A recorded a cash payment of Rs.300,000 as salaries. Both the salaries and cash account were debited. What would be the debit effect of journal entry to rectify this error, if there is suspense account in trial balance?

1. Bank account
2. Suspense account
3. Cash account
4. Salaries account HB PAID QUIZ

Q8. If Work in Process closing inventory is provided as additional information, other than trial balance, then that inventory treated in:

1. Both profit & loss account and balance sheet
2. Profit and loss account only
3. Balance Sheet only HB PAID QUIZ
4. Expense only

Q9. Carriage inward is Debited under main head:

1. Liabilities
2. Assets
3. Income
4. Expenses HB PAID QUIZ

10.

Fair value of a plant is Rs. 100,000 and its book value is Rs. 80,000. Which of the following is TRUE if revaluation of plant is to be recorded?

1. Debit revaluation account with Rs. 20,000 HB
2. Debit revaluation account with Rs. 100,000
3. Debit plant account with Rs. 100,000
4. Debit plant account with Rs. 20,000