MGT101 Quiz File

FINANCIAL ACCOUTING – MGT101

All of the following are components of financial statements EXCEPT.

Statement of Profit or Loss and other Comprehensive Income

Statement of Cash Flows

All of the following are contra accounts EXCEPT.

Drawings Sales return Purchases Provision of doubtful debts

Which of the following are recorded in sales journal?

Cash sales transactions Credit sales transactions Credit sales return transactions Both credit and cash sales transactions

Which of the following is TRUE?

Nature of Incomes is Credit

Nature of Owners’ Equity is Credit

Which of the following should be debited in bank statement?

Amount deposited in bank Interest on deposit Amount withdrawn from bank Dividend received on behalf of customer

“5/10. n/30” is an example of:

Bulk purchase discount Regular customer discount Season end discount Settlement discount The process of picking up an amount from journal and placing into the debit or credit side of relevant ledger account in ledger is known as:

Journalizing Posting Balancing Crediting

Which of the following is used to check the arithmetic accuracy of bookkeeping?

All of the following are examples of current assets EXCEPT:

Cash at bank Cash at hand Accounts receivables

Which of the following is/are prepared for a specific period?

Statement of Profit or Loss Statement of Financial Position All financial statements

Posting is done in ------

Invoice Journal Ledger

Which of the following represents the basic ideology of income statements?

Profit = Income - Expenses Profit = Income + Expenses Assets = Owners equity + Liabilities Assets = Owners equity – Liabilities Which of the following is also known as balance sheet?

Statement of cash flow Statement of financial position

Statement of profit or loss Which of the following (s) the part of cost of goods sold?

Opening stock Purchases Closing stock All of the given items In _______ ledger accounts produce balance continuously throughout the accounting period like after each Dr/Cr posting.

Running balance style T account style Report style

Which of the following is a contra account?

Sales Purchase return Capital Debt Which of the following is an example of a current liability?

Furniture Closing stock Discount received Which is also known as day book?

Journal Ledger

Which of the following refers to the resources of entity

Sum of total assets Sum of total liability Sum of total assets and owner equity Sum of All

Which of the following errors can be deducted through a trial balance

Omission of complete transaction from recording Arithmetic accuracy of bookkeeping Giving Dr and Cr effect to wrong accounting head Passing correct journal entry with wrong amount