MGT101 MCQ'S | VU HELP DESK

MGT101 | Quiz 4 | Date: 12 August, 2014

1. Following information are extracted from books of Mr. XYZ Particulars Rs. Write off Bad debts (given in adjustments) 2,400 Sundry Debtors (given in trial balance) 33,200 Provision is created on Debtors at 10% Identify the Total amount which will deduct from Sundry debtors

Rs. 460
2400
Rs. 5,480
5720

Only new prevision is deducted from debtors

Sundry Debtors                         = 33,200

Less Write off Bad debts          = 2400

Sundry debtor                          30800

Debts:

New provision   = 3080            30800@ 10%

+Bad debts        = 2400

                           5480

Total amount which will deduct from Sundry debtors: 5480

2. Goods sold to Mr. Naeem for Rs. 5,000 are wrongly recorded in sales journal at Rs. 500 and same amount is posted in Mr. Naeem’s account, this is an example of:

Compensating errors
Error of Commission
Error of Principle.

Most Important

Errors of commission ==

An error of commission occurs when you record an incorrect value in posting. Such errors include original entry errors, transposition errors, calculation errors and reversal of entries

 Errors of omission ==

Errors of omission can be one of the more difficult errors to detect, since they involve failing to record a transaction partially or completely. An error of omission may be hard to detect because it could lead to a balanced accounting equation. This type of error demonstrates why accountants and accounting students should double check their work properly to see if anything was omitted, instead of using a balanced Statement of Financial Position as validation. For example, if you fail to record depreciation in a period or record a devalued asset, such errors of omission would only be detected through careful scrutiny of all particulars.

Errors of principle ==

Apart from being accurate and careful to include all figures, accountants must also ensure that they are procedurally accurate as well. An error of principle is one that is contrary to the fundamental principles, concepts and assumptions of accounting. For instance, if you record capital expenditure as revenue expenditure or treat withdrawals by the business owner as an expense, these go against the fundamental principles and held concepts in accounting. Such errors will skew the figures in the income statement and statement of financial position.

3. Profit can be distributed from which of the following account:

share capital account
share premium account
profit and loss account
revaluation reserves account

4. Dividend is approved by the shareholders at the recommendation of the board of directors in which of the following meeting:

Extraordinary General Meeting
Annual General Meeting
Statutory General Meeting
None of the

5. Which of the following statement is incorrect?

companies ordinance doesn't allow the fixed asset revaluation reserve to be the part of the statement of changes in equity
IASs allows the fixed asset revaluation reserve to be the part of the statement of changes in equity
in preparing statement of changes in equity we ADD the fixed asset revaluation reserve in the statement of changes in equity
in preparing statement of changes in equity we DONOT add the fixed asset revaluation reserve in the statement of changes in equity

6. Under the diminishing balance method, depreciation is calculated on:

The original cost
The scrap value
Book value
Both original cost and Scrap value

7. If bank has debited the customer’s account in pass book, it will be treated as:

Dividend received
Interest on Overdraft
Interest on Deposits
all

8. Identify selling expenses of manufacturing concern with the help of given data. Particulars Rs. Salesman’s salary 75,000 Commission on sales 28,000 Carriage outward 20,000 Carriage inward 10,000

Rs. 58,000
Rs. 30,000
Rs. 1, 23,000
Rs. 1, 33,000

9. In which of the following Gross Profit is calculated?

Balance Sheet
Trading Account
Appropriation Account
Receipt and Payment Account

10. All of the following are advantages of opening an account with Bank EXCEPT:

Money is kept safe—there is no risk of theft of dacoity.
Cash in hand at any time can easily be ascertained through Cash Book balance.
Money can be remitted from one place to another place very quickly and at reduced extent.
Bank enables its customers to buy goods on credit through Letter of Credit.

11. Which of the following is TRUE about the treatment of insurance paid in advance Rs. 13,000?

It will be treated as an other income in Profit & Loss Account
It will be treated as a current liability in Balance Sheet
It will be treated as an accrued expense in Balance Sheet
It will be deducted from concerned expense in Trading and Profit & Loss account

12. Supervisor's salary and equipment repair cost are examples of:

Factory overhead cost
Direct material cost
Direct labor cost
Finished goods cost

…. UNSOLVED PORTION ….

Which of the following is shown on debit side of creditors control account? MGT101…. UNSOLVED PORTION END ….

The amount charged to depreciation goes on declining over the years in which of the following depreciation methods? MGT101…. UNSOLVED PORTION END ….

Which of the following would be appeared in balance sheet? MGT101…. UNSOLVED PORTION END ….

The "Bad debt expense" is a/an: MGT101…. UNSOLVED PORTION END ….

If adjusted bank book balance is required before preparation of bank reconciliation statement, which of the following items need NOT to be adjusted? MGT101…. UNSOLVED PORTION END ….

All of the following are shown at ‘Liabilities and Owner’s Equity’ side of balance sheet EXCEPT: MGT101…. UNSOLVED PORTION END ….

Discount allowed Rs. 93 to Ali has been recorded in the books of accounts as Rs. 39. To rectify this error: MGT101…. UNSOLVED PORTION ….

Opening book value of furniture is Rs. 410,000. Furniture bought during the year is Rs. 50,000. Depreciation expense for the period is Rs. 20,000. What will be the ending written down value of furniture? MGT101…. UNSOLVED PORTION END ….

Bad debts written off (given in adjustment) always affect the: MGT101…. UNSOLVED PORTION END ….

…. UNSOLVED PORTION END ….

13. Find out the missing value of an Accounting Equation with the help of given data: Bank Rs. 22,500 Other assets Rs. 1,000 Creditors Rs. 8, 385 Other liabilities Rs. 9,000 Owner’s equity ?

Rs. 6,115
Rs. 31,885
Rs. 17,385
Rs. 14,115

14. Working capital Rs. 20,000, Current liabilities Rs. 30,000 and fixed assets Rs. 100,000; calculate current assets?

Rs. 10,000
Rs. 50,000
Rs. 110,000
Rs. 120,000

Current Assets – Current Liabilities = Working Capital

                    If 50000 – 30000                   = 20,000

15. The Sales Returns Day Book would include:

Goods bought on credit
Fixed Assets bought that are inappropriate for business
Stock that customers have returned (sale returned)
Goods bought on credit that are returned to the original supplier

16. Particulars Rs. Opening written down value of machine 4,10,000 Cost of machine purchased during the year 50,000 Depreciation during the year 20,000 closing written down value (WDV) of the Machines ?

Rs. 4, 40,000
Rs. 4, 30,000
Rs. 4, 80,000
Rs. 70,000

(Machine value 410000+ cost on purchase 50000 – deprecation 20000 = WDV 440000

17. Which of the following is NOT correct?

Decrease in Assets will be credit
Decrease in Liabilities will be debit
Decrease in Expenses will be credit
Decrease in Revenue will be credit

18. Which of the following is not a cash outflow for the organization?

Depreciation
dividends
interest payments
taxes

19. Which of the following expenses are called financial expenses?

Payment of rent & Salary expense
Markup on loan& Bank Charges
Interest & advertisement expense
Wages and Depreciation expense

20. Which of the following is the first book to record a transaction?

Trial Balance
Journal
Trial Balance
Balance Sheet 

21. Budget is a plan of income, expenses & other financial operations for……..Period

Current period
Future
past
none of the above

22. Which of the following represents the profits which are NOT distribution to shareholders as cash dividend?

Capital Reserve

Revenue Reserve

Equity

Debt

23. Expenses incurred for Salaries, heating and lighting are the examples of:

Preliminary Expense
deferred
revenue
capital expense

24. “Cash payments to the employees” will be shown under the head of _______________ in cash flow statement.

Financing activities
Operating activities
investing
none of above

25. In the partnership business, all of the following statements are true except which of the following?

If the partnership business does not specify otherwise, profits will be shared equally by the partners
The liability of the partner is limited
There is no partnership income tax, the individual partners pay personal income tax on their portion of partnership profits

26. What should be credited, if salary is paid to Sohail?

Sohail account
Salaries account
Cash Account
drawing account

27. Which of the following is the example of current liability?

Notes payable
Notes receivable
Accounts receivable
Accounts payable

28. Find out the missing value of an Accounting Equation with the help of given data: Cash Rs.100, 000 Debtors Rs.10, 000 Other Assets Rs. 1,000 Owner’s equity Rs. 1, 000 Liabilities?

12000
11000
111000
110,000

29. Following information is available relating to a manufacturing concern: Cost of Goods Sold Rs. 245,000 Opening Stock Rs. 15,000 Closing Stock Rs. 25,000 What will be the amount of Purchases?

Rs. 205,000
Rs. 250,000
Rs. 285,000
Rs. 255,000

30. Fixed Asset (WDV) + __________ = Total assets Employed

Total liabilities
Total assets
Working capital
Current Assets

31. Particulars Rs. Opening written down value of machine 1,00,000 Cost of new machine purchased during the year 50,000 Depreciation during the year 20,000 Closing written down value (WDV) ?

Rs. 1, 30,000
Rs. 1, 50,000

32. A manufacturing concern has Raw material of worth Rs. 100,000, Direct Labor Rs. 75,000 and Factory Overhead Rs. 50,000. The amount of Conversion cost will be:

Rs. 150,000
Rs. 175,000
Rs. 125,000
Rs. 225,000

33. The allocation of the cost of a tangible plant asset to expense in the periods, in which services are received from the asset, is termed as:

Appreciation
Depreciation
Fluctuation
none of given option

34. Net Profit = Income -

Liabilities
Asset
expense
capital

35. If cost of sales is Rs. 95,000, income from sales Rs. 200,000 and operating expenses Rs. 100,000. What will gross profit?

5000
95000
100000
105000

36. A financial statement that indicates the position of a business, on a particular time (date) is known as:

A Cash Flow Statement
A Retained Earnings Statement
An income statement
Balance sheet

37. Office salaries, advertising and sales commissions are the examples of:

Financial Expenses
Operating Expense
Marketing Expenses
direct expense

38. All of the followings are Tangible Fixed Assets Except:

Plant and Machinery
Building
Office equipment
patent

39. The proper classification of Cost of Goods Sold account is:

Assets
expense
revenue
liabilities

40. Heavy expenditure on advertisement of a new product is an example of:

Capital Expenditure
Revenue Expenditure
Deferred Revenue Expenditure
Capital Loss

41. If, Cost of machine = Rs.400, 000 Useful life = 5 years Residual value = Rs.25, 000 Sale price = Rs.40, 000 Rate of depreciation = 40% What will be the amount of depreciation charged on 3rd year using straight line method?

35,000

57,600

75000

96000

42. The amount charged to depreciation goes on declining in:

Depreciation fixed method

Annuity method

Written-down value method

Straight line depreciation method

43. Which of the following is the example of Current Assets?

Land
Building
Stock
Capital

44. At the end of financial year a partner’s drawings are transferred to the:

Credit side of the partner’s capital account

Credit side of the partner’s current account

Debit side of partnership bank account

Debit side of the partner’s current account

45. Discount allowed Rs. 93 to Ali has been recorded in the books of accounts as Rs. 39. To rectify this error:

Both accounts will be adjusted with Rs. 93

Both accounts will be adjusted with Rs. 54

Only Ali’ accounts will be adjusted with Rs. 54

Only Discount allowed account will be adjusted with Rs. 54

46. Which of the following are recorded in Cash Book?

Receipts and payments
Profits and losses
Assets and liabilities
Capital and Expenditures

47. If company has distributable profit is Rs. 4, 00,000. Profit sharing share ratio of Mr. A, Mr. B and Mr. C is 2:3:5 respectively what will be the Profit share for Mr. B in distributable profit.

Rs. 80,000
Rs. 1, 20,000
Rs. 2, 45,000
Rs. 3, 43,000

48. "Contingencies reserve" is an example of which of the following type of reserve:

General reserve
specific reserve
capital reserve
main reserve

49. Which one of the following will result in increase in revenues?

Purchased fixed asset
Received discount
Payment to creditors
Return of goods, sold on credit

50. What is nature of Capital account?
Debit
Credit
Expenses
Loss

Which of the following is(are) example(s) of accruals?

Select correct option:

Electricity bills payable

Water supply bills payable

Wages payable

All of the given options

Which of the following shows company’s negative working capital?

Select correct option:

Current Asset > Current Liability

Current Asset < Current Liability

Current Asset = Current Liability

None of the given options

___________ is the detail of transaction in one's account provided by the bank.

Select correct option:

Bank statement

Bank reconciliation statement

Income statement

Financial statement

Total Sales are calculated by adding:

Select correct option:

Cash sales and cash received from debtors

Credit sales and cash received from debtors

Cash sales and credit sales

Cash ales and credit purchases

  

The amount of owner's equity in a business is affected by which of the following?

Select correct option:

The profitability of the business

Investments made in the business by the owner

The amount of dividends paid to stockholders

All of the given options

Expenses incurred for Salaries, heating and lighting are the examples of:

Select correct option:

Preliminary Expense

Deferred Expense

Revenue Expense

Capital Expense

Which of the following account balance/s is/are shown on credit side of Trial Balance? (It is assumed that all account balances are shown on normal balance)

Select correct option:

Capital account

Sundry creditors account

Accounts payable account

All of the given options

While making Profit & Loss account, Excess of expenses over income in a specified accounting period is called:

Select correct option:

Profit

Loss

Surplus

Deficit

__________ is the art of recording, classifying and summarizing the transactions and events of a business and interpreting the results thereof.

Select correct option:

Book-keeping

Accounting

Management

Auditing

In balance sheet fixed assets are shown at:

Select correct option:

Written down value (WDV)

Cost price

Market value

Fair value

Assets are divided in which of the following categories in balance sheet.

Select correct option:

Current assets, Long term assets and capital assets

Current assets, Long term assets and fixed assets

Current assets, Quick assets and business debts

Current assets, Fixed assets and deferred cost

In cost of goods sold statement the ‘cost of goods manufactured’ is equal to:

Select correct option:

Total factory cost + Opening work in process + Ending work in process

Total factory cost + Opening work in process – Ending work in process

Total factory cost - Opening work in process + Ending work in process

Ending work in process +Total factory cost – Opening work in process

Supervisor's salary and equipment repair cost are examples of:

Select correct option:

Factory overhead cost

Direct material cost

Direct labor cost

Finished goods cost

Bank Reconciliation Statement is:

Select correct option:

A memorandum statement

A ledger account

A part of cash book

A part of journal

Which of the following entry will be recorded for discount received in a control account?

Select correct option:

Discount Received (Dr) and Creditors Control A/c (Cr)

Discount Received (Dr) and Creditors A/c (Cr)

Creditors Control A/c (Dr) and Discount Received (Cr)

Debtors A/c (Dr) and Discount Received (Cr)

A form that allows individuals to compare their personal bank account records to the bank's records of the individual's account balance in order to uncover any possible discrepancies is known as:

Select correct option:

Bank statement

Income statement

Financial statement

Bank Reconciliation statement

Bank Reconciliation Statement is prepared by:

Select correct option:

Bankers

Accountant of the business

Statutory auditor

Manger

Particulars Rs. Opening written down value of machine 3,75,000 Cost of machine 50,000 Depreciation during the year 11,500 Closing written down value (WDV) of the Machines ?

Select correct option:

Rs. 4,13,5000

Rs. 4, 25,000

Rs. 3, 36,500

Rs. 61,500

Sales to Mr. “A” of Rs. 336 have been debited to Mr. “B” account, this will be rectified by:

Select correct option:

Debiting Mr. A’s account and crediting Mr. B’s account

Debiting Mr. B’s account and crediting Mr. A’s account

Crediting both accounts

Debiting both accounts

All the statements are correct about Journal voucher EXCEPT: 

Select correct option: 

 Financial data is picked only from journal vouchers to Journal

 These are used to record all transaction other than cash & bank

 These are used to make corrections or adjustments to previous Receipt

 Format of journal voucher is different from other vouchers

Which of the following contents are included in the Cost of goods sold? 

Select correct option: 

 Opening stock 

 Purchases 

 Freight in 

 All of the given options

Which of the following Journal entry will be recorded when the bad debts are recovered? 

Select correct option: 

 Cash account (Dr.) & Bad Debts recovered account (Cr.)

 Accounts Receivable (Dr.) & Bad Debts recovered account (Cr.)

 Bad debts recovered account (Dr.) and profit & loss account (Cr.)

 Provision for doubtful debts account (Dr.) & cash account (Cr.)

Which of the following is NOT correct? 

Select correct option: 

 Decrease in Assets will be credit

 Decrease in Liabilities will be credit

 Decrease in Expenses will be credit

 Decrease in Revenue will be debit

Particulars Rs. Opening written down value of machine 1,00,000 Cost of new machine purchased during the year 50,000 Depreciation during the year 20,000 Closing written down value (WDV) ? 

Select correct option: 

 Rs. 1,30,000

 Rs. 1, 50,000

 Rs. 1, 20,000

 Rs. 70,000 

An accounting system is used by a business to: 

Select correct option: 

 Analyze transactions

 Handle routine bookkeeping tasks

 Structure information

 All of the given options

In an account if debit side > credit side, the balance is known as the: 

Select correct option: 

 Negative Balance

 Debit balance

 Positive Balance 

 Credit balance 

Details of individual accounts are kept in a separate register / ledger called: 

Select correct option: 

 Control Account 

 Subsidiary Ledger

 General Journal 

 All of the given options

which of the following statement/s closing stock is/are shown? 

Select correct option: 

 Profit and loss account

 Balance sheet

 Income statement 

 All of the given options

Which of the following particular/s is/are included in payment voucher? 

Select correct option: 

 Name of organization 

 Cash payment

 Date 

 All of the given options

Which of the following appears in both the Income Statement debit column and the Balance Sheet credit? 

Select correct option: 

 Net income

 Net loss

 Dividends

 Retained earnings

A book that keeps separate record for each account is known as: 

Select correct option: 

 Trial Balance 

 Voucher

 General Journal

 General Ledger

Which of the following Organization converts raw material into finished goods? 

Select correct option: 

 Trading concern

 Manufacturing concern

 Merchandising concern 

 Service concern 

Franchise rights, goodwill and patents are the examples of: 

Select correct option: 

 Liquid assets

 Tangible assets

 Intangible assets

 Current assets

Cost of goods sold + ending finished goods – opening finished goods=? 

Select correct option: 

 Total factory cost 

 Cost of goods manufactured 

 Prime cost 

 Conversion cost

accounting, which of the following account will be credited if the bad debts are recovered in cash? 

Select correct option: 

 Cash a/c

 Bad debt recovered a/c

 Doubtful debts a/c

 Provision for bad debts a/c

What should be credited, if rent paid in cash? 

Select correct option: 

 Landlord’s account

 Rent account

 Cash account

 Accounts receivable account 

Sales to Mr. “A” of Rs. 336 have been debited to Mr. “B” account, this will be rectified by: 

Select correct option: 

 Debiting Mr. A’s account and crediting Mr. B’s account

 Debiting Mr. B’s account and crediting Mr. A’s account

 Crediting both accounts

 Debiting both accounts

If cost of sales is Rs. 60,000, income from sales Rs. 95,000 and direct expenses Rs. 10,000. Calculate Net profit. 

Select correct option: 

 Rs. 15,000

 Rs. 35,000

 Rs. 55,000

 Rs. 60,000

Particulars Rs. Opening written down value of machine 4,10,000 Cost of machine purchased during the year 50,000 Depreciation during the year 20,000 closing written down value (WDV) of the Machines ? 

Select correct option: 

 Rs. 4, 40,000

 Rs. 4, 30,000

 Rs. 4, 80,000

 Rs. 70,000

Which of the following voucher is used to record receipt of cash? 

Select correct option: 

 Journal Voucher

 Receipt Voucher

 Payment Voucher

 Nominal Voucher

In double entry system discount received is recorded as: 

Select correct option: 

 Creditors a/c (Dr.), Discount received a/c (Cr.)

 Discount received a/c (Dr.), Creditors a/c (Cr.)

 Debtor a/c (Dr.), Discount received a/c (Cr.)

 Discount received a/c (Dr.), Debtor a/c (Cr.)

The expenses which are NOT paid out of Gross Profit is classified as: 

Select correct option: 

 Direct Expenses

 General Expenses

 Financial Expenses

 Selling Expenses

Which of the following account(s) would be decreased with a debit? 

Select correct option: 

 Capital

 Retained Earnings

 Revenues

 All of the given options

Which of the following is fiscal Year of Government of Pakistan? 

Select correct option: 

 1st January to 31st December 

 1st June to 31st May

 1st July to 30th June

 1st October to 30th September

Which of the following is/are inventory valuation method(s)? 

Select correct option: 

 FIFO

 LIFO 

 Weighted average 

 All of the given options

Which of the following particular/s is/are included in receipt voucher? 

Select correct option: 

 Name of organization 

 Bank receipt 

 Date 

 All of the given options

Which of the following assets is most likely to appreciate rather than depreciate? 

Select correct option: 

 Land

 Motor vehicles

 Plant and machinery 

 Fixtures and fittings

Which of the following item needs to be entered in the Cash Book in order to bring it in line with the entries on the Bank Statement? 

Select correct option: 

 A bank charges

 An error on the Bank Statement

 An uncredited deposit

 An unpresented cheque

Wages paid to laborers working in the manufacturing department is treated as an expense of: 

Select correct option: 

 Cost of goods sold

 Administrative expenses

 Selling expenses

 Marketing expenses

Bad debts written off (given in adjustment) always affect the: 

Select correct option: 

 Debtors account

 Creditors account

 Cash account 

 Capital account

Carriage paid Rs. 50 for the newly purchased machinery if debited to carriage account will effect: 

Select correct option: 

 Only carriage account

 Only machinery account

 Both carriage and machinery account

 None of the given options

Cost of goods manufactured - opening work in process + ending work in process =? 

Select correct option: 

 Cost of goods sold

 Prime cost 

 Conversion cost 

 Total factory cost

If cost of sales is Rs. 95,000, income from sales Rs. 200,000 and operating expenses Rs. 300,000. What will be net result? 

Select correct option: 

 Rs. 1, 95,000 Losses

 Rs. 1, 95,000 Profits

 Rs 1, 05,000 Profits

 Rs1, 05,000 Losses

What is the proper order of the following steps in the accounting process? I. Prepare and analyze the trial balance II. Record relevant transactions and events in a journal III. Analyze each transaction and event from source documents IV. Post journal information to ledger accounts 

Select correct option: 

 III. IV. I. II. 

 I. II. III. IV. 

 III. II. IV. I. 

 III. II. I. IV. 

Sales to Mr. “A” of Rs. 336 have been debited to Mr. “B” account, this will be rectified by: 

Select correct option: 

 Debiting Mr. A’s account and crediting Mr. B’s account

 Debiting Mr. B’s account and crediting Mr. A’s account

 Crediting both accounts

 Debiting both accounts

Which of the following expenses are called financial expenses? 

Select correct option: 

 Payment of rent & Salary expense

 Markup on loan& Bank Charges

 Interest & advertisement expense

 Wages and Depreciation expense

Cash and other resources that are expected to turn to cash or to be used up within one year of the balance sheet date are called: 

Select correct option: 

 Current liability

 Current assets

 Fixed assets

 Long-term assets

Money spent to acquire or upgrade physical assets is known as: 

Select correct option: 

 Revenue Expense

 Capital Expense

 Administrative Expense

 Operating Expense

Which of the following might be a reason, when a Bank Statement show greater balance then Cash Book balance at the end of specified period? 

Select correct option: 

 Unpresented cheques

 Unrecorded bank charges

 Uncredited cheques

 None of the given options

Which of the following particular is NOT included in journal voucher? 

Select correct option: 

 Name of organization 

 Bank receipt number

 Debit amount 

 Credit amount 

Consider the following data: Particulars Rs. Assets ? Owner's equity 35,000 Liabilities 90,000 

Select correct option: 

 Rs. 35,000 

 Rs. 55,000

 Rs. 1, 25,000

 Rs. 1, 05,000

If, Cost of machine = Rs.400, 000 Useful life = 5 years Residual value = Rs.25, 000 Sale price = Rs.40, 000 Rate of depreciation = 40% What will be depreciation of machine after one years using diminishing balance method? 

Select correct option: 

 Rs. 1, 60,000

 Rs. 11,840

 Rs. 34,560

 Rs. 34,860

If, Cost of machine = Rs.400, 000 Useful life = 5 years Residual value = Rs.25, 000 Sale price = Rs.40, 000 Rate of depreciation = 40% What will be book value of machine after four years using straight line method? 

Select correct option: 

 Rs.35, 000

 Rs.40, 000

 Rs.55, 000

 Rs.75, 000

Amount generated from sales in a business is called: 

Select correct option: 

 Income

 Net Income

 Gross Profit

 Operating profit

___________= Gross profit < Operating Expenses 

Select correct option: 

 Net Profit

 Gross Profit 

 Net Loss

 Gross Loss

Which of the following is an example of operating expense? 

Select correct option: 

 Purchasing operating equipment

 Purchasing cleaning services

 Purchasing an investment in another company

 Purchasing a computer for the accounting office

Net profit = Gross profit - _________ 

Select correct option: 

 Operating Expenses

 Product Cost 

 Deferred Expenses

 Direct Cost

which of the following statement/s closing stock is/are shown? 

Select correct option: 

 Profit and loss account

 Balance sheet

 Income statement 

 All of the given options

If Gross profit Rs.16,500 and Cost of goods sold Rs.183,500, what will be the amount of Net Sales? 

Select correct option: 

 Rs. 183, 500

 Rs. 167, 000

 Rs. 200, 000

 Rs. 230, 000

Cost of goods manufactured + opening finished goods – ending finished goods =? 

Select correct option: 

 Total factory cost 

 Cost of goods sold

 Prime cost 

 Conversion cost

Goods sold to Mr. Salman for RS. 6,000 have been forgotten to enter in books of accounts, this is an example of: 

Select correct option: 

 Error of Omission 

 Error of Commission 

 Error of Principle 

 Error of Original entry

Which of the following account balance is shown on credit side of Trial Balance? (It is assumed that all account balances are shown on normal balance) 

Select correct option: 

 Cash account 

 Furniture account

 Vehicle account

 Capital account

A debit balance in the Bank Statement indicates: 

Select correct option: 

 Cash at bank

 Bank overdraft

 Overpayment to creditors

 Cash in hand

Increase in an expense is recorded on the: 

Select correct option: 

 Left or credit side of the account

 Right or debit side of the account

 Left or debit side of the account 

 Right or credit side of the account

Expense incurred for operating activities of the business in providing goods and services is known as: 

Select correct option: 

 Revenue expense 

 Capital expense 

 Deferred expense 

 Preliminary expense

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

Select correct option: 

 General Journal

 Balance Sheet

 Profit and Loss account

 None of the given options