mgt101 quiz 3 spirng 2021
MGT-101Quiz No.3 FileSpring (2021)
1. …… is posted in the debit side of debitors account.
Ans. Balance b/f of debtors.
2. Owner’s equity =?
Ans. Capital- profits.
3. In case of writing off debtors as bad debt, -------- is debited.
Ans. Bad Debts account.
4. The inventory account falls under which of the following
classification of accounts?
Ans. Assets.
5. Bank Reconciliation statement is a:
Ans. Memorandum statements
6. Rent receivable account should be debited due to:
Ans. Opening balance.
7. --------------- is posted in credit side of debtors account.
Ans. Sales return.
8. Is debited for closing the salaries’ expense for the period?
Ans. Income statement.
9. ABC & Co purchased for resale purposes on case, which one
of the following account head will decrease?
Ans. Cash.
10. In case of increase in prodivision for doubtful debt, -----
is debited.
Ans. Payable account.
11. Which of the following should be credited on sale of
completed goods on cash basis manufacturing concern?
Ans. Finished Goods Account.
12. Which of the following is an error of original entry?
Ans. A receipt of RS. 50,000 from a debtor is recorded as RS. 5,000
in his account.
13. Carriage inward/outward is debited under main head.
Ans. Expenses.
14. Factory overhead cost= power & fuel cost+ ----------
Ans. Other indirect cost.
15. Expenses portion of direct cost is treated as:
Ans. Expense.
16. Under IAS 2, goods available for sale purpose in the
ordinary course of business is known as:
Ans. Assets.
17. Prime Cost = direct material cost+ -------.
Ans. Direct labor cost.
18. Direct cost is also known as:
Ans. Cost of sales
19. Office supplies consumed is considered as:
Ans. Admin expense.
20. All of the following items appear on credit side of trade
receivable control account EXCEPT.
Ans. Cheques dishonored
21. Which of the following should be credited when
production is completed goods in manufacturing concern?
Ans. Work in process account.
22. A payables ledger control account had a closing balance
of RS. 9,000 A cash purchase of RS. 500 had been omitted to
record in this control account. What should be the concern
balance of payables control account?
Ans. RS. 8,500 credit
23. While preparing a creditors control account, credit side
shows the items that will cause:
Ans. Decrease in creditor’s balance.
24. Expenses are also known as:
Ans. Expired portion of cost.
25. Mr. A recorded a cash payment of RS. 300,000 as
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?
Ans. Cash account.
26. All of the following items appear on debit side of trade
receivable control account EXCEPT.
Ans. Discount allowed.
27. Discount received from a creditor is debited under main
head.
Ans. Income
28. Which of the following should be credited on return of
raw material to supplier in manufacturing concern?
Ans. Material account/ Voucher payable account.
29. The unexpired portion of direct cost is treated as:
Ans. Expenses
30. Opening indirect material inventory is adjusted with ----
of indirect material, to calculate the cost of sales.
Ans. Sales.
31. Under periodic system of recording inventory, purchase
of inventory is debited to ------------.
Ans. Purchase account.
32. All of the following items may appear in trade
receivable control account EXCEPT:
Ans. Credit purchases.
33. If work in process closing inventory is provided in trial
balance, then that inventory is treated in:
Ans. Balance sheet only.
34. All of the following items may appear in trade control
account EXCEPT:
Ans. Cash sales.
35. If the debit side trial balance I heavier than the credit side, suspense
account will be written on ------------.
Ans. Both debit and credit side.
36. Income=?
Ans. Profit – expenses.
37. Capital introduced by the owner is a ------.
Ans. Capital receipt.
38. Purchase return account is a/an ---------.
Ans. Contra item.
39. When correct accounting entry is recorded in the books
of accounts but the amount in both accounting effect (DR. &
CR) is wrong, it is known as:
Ans. Error of principle.
40. Which of the following should be debited on purchase
of raw material on credit basis in manufacturing concern?
Ans. Material account.
41. All of the following items appear on debit side of trade
payable control account EXCEPT:
Ans. Credit purchases.
42. Purchases Rs. 500, carriage inward Rs. 50, Gross sales
RS. 700 and gross profit Rs. 100, net purchases=?
Ans. Rs. 500.
43. A payment of Rs. 1,000 to a creditor Mr. A is recorded
in the account of another creditor Mr. B what will be its
effect on net profit?
Ans. Understated by Rs. 2,000.
44. Which of the following is revenue receipt?
Ans. Sales revenue.
45. Carriage inward should be the part of:
Ans. Indirect cost
46. Sales Rs. 500, return outwards Rs. 50. Gross Profit Rs. 100. Net
sales=?
Ans. Rs. 450.
47. Accumulated depreciation of furniture is a/an ----------.
Ans. Contra asset account.
48. Expired portion of direct cost is a part of --------.
Ans. Cost of sales.
49. A receivables ledger control account had a closing balance of Rs.
9,000. A dishonored Cheque of Rs. 500 had been omitted to record in
this control account. What should be the correct balance of
receivables control account?
Ans. Rs. 9,500 debit.
50. Mr. X receives a discount of Rs. 50 from supplier. The discount is
debited to discount allowed account. What will be its effect on net
profit?
Ans. Understated by Rs. 100
51. A minor repair to a photograph machine was paid in
cash. Correct entry was made to cash account but no entry
was made to other account. What will be the debit effect f
journal entry to rectify this error, if there is suspense account
in trial balance?
Ans. Photocopy machine repair account.
52. Cotton thread to make fabric in manufacturing concern is:
Ans. Raw material
53. Total factory cost= prime cost+ -------.
Ans. Factory overhead cost.
54. All of the following items may appear in trade payable
control account EXCEPT:
Ans. Bad debts.
55. Which of the following is a Revenue expenditure?
Ans. Payment of salaries
56. Under perpetual system of recording inventory,
purchase of inventory is recognized as -------.
Ans. Asset.
57. Net realizable value of inventory =
Ans. Selling price – further costs to sell
58. Control accounts are maintained for all of the
following EXCEPT:
Ans. Depreciation.
59. Consumed direct supplies are considered as:
Ans. Cost of Sales.
60. An income statement is prepared for a specific period.
Which is also known as:
Ans. Reporting period.
61. Expenses =?
Ans. Income – profit
62. Service fee received is a ---------.
Ans. Revenue Expenditure
63. Salaries expense of Rs. 5,000 is recorded as Rs. 500.
What will be its effect on net profit?
Ans. Understated by Rs. 4,500
64. Which of the following is an error of commission?
Ans. A payment to a debtor Mr. A is recorded in the account of
another Mr.
65. Which of the following should be credited on sale of
complete goods on cash basis in manufacturing concern?
Ans. Sales account
66. If some financial information is completely forgotten to
record in the books of original entry. Such error is known as:
Ans. Error of Omission.
67. Opening direct material inventory is adjusted with ----
of direct material, to calculate the cost of sales.
Ans.
68. Mr. Y has recorded a stationary expense of Rs. 50 as
salaries expense. What will be its effect on net profit?
Ans. No effect.
69. Discount received from a creditor is credited under
main head.
Ans. Income.
70. Unconsumed office supplies are considered as:
Ans. Current asset.
71. Mostly, control accounts are maintained for:
(a. Trade receivables b. Trade payables c. Inventory)
Ans. All of the given.
72. Which of the following is INCORRECT about closing
stock?
Ans. It reduces the resources of business.
73. Which of the following is an error of principle?
Ans. Purchases of vehicle is recorded in repairs account.
74. Which of the following should be debited for issue of
raw material to production department in manufacturing
concern?
Ans. Finished goods account.
75. If the credit side of trial balance is heavier than the
debit side, suspense account will be written on ------------.
Ans. Debit side.
76. Which of the following should be credited on purchase
of raw material on cash basis in manufacturing concern?
Ans. Cash account.
77. Discount allowed to a debtor is credited under main
head:
Ans. Expenses.
78. Current year’s depreciation of furniture is a/an -------.
Ans. Expense account.
79. Which of the following should be debited on purchase
of raw material on cash basis in manufacturing concern?
Ans.
80. Which of the following should be considered as ready
for sales in manufacturing concern?
Ans. Finished goods.
81. A creditor’s control account is used to record all the
transactions related to:
Ans. Credit purchases
82. In a trading concern, salaries of marketing staff is
included in ------.
Ans. Operating expense
83. When correct accounting effect (DR/CR) is given in the
wrong accounting head but main head remains correct, is
known as:
Ans. Error of commission.
84. A new accountant of ABC Corporation has prepared the
trial balance. But there is difference in total of both sides of
trial balance, such difference can be due to:
Ans. All of the given options
85. Wood used to make a table in manufacturing concern
is:
Ans. Raw material
86. Purchase of building costing Rs.500, 000 is recorded in
repairs account. What will be its effect on net profit?
Ans. No effect
87. While preparing a Debtors control Account, credit side
posted items cause:
Ans. Decrease in debtors’ balance.
88. Purchases Rs. 500, Returns inward Rs. 50, Gross sales
RS. 700 and gross profit Rs. 100, net purchases=?
Ans. Rs. 500.
89. Which of the following should be debited on return of
raw material to supplier in manufacturing concern?
Ans. Voucher payable account
90. Sales return account is a/an -------.
Ans. Contra item.
91. Which of the following is/are the function of financial
accounting?
Ans. All of the given.
92. While preparing a Debtors control Account, debit side
posted items cause:
Ans. Increase in debtor’s balance.
93. Unfinished gods are called :
Ans. Work in process.
94. When the sum of more than one error cancels the
accounting effect of each other. It is called :
Ans. Compensating error.
95. Which of the following is capital receipt?
Ans. Long item loan from bank.
96. Which of the following should be credited for issue of
raw material to production department in manufacturing
concern?
Ans. Material account.
97. Control accounts are usually maintained by:
Ans. Large organizations.
98. All of the following items may appear in trade receivable
control account EXCEPT:
Ans. Cash sales.
99. Which of the following should be debited on sale of
complete goods on cash basis in manufacturing concern?
Ans. Cash account.
100. Expired portion of direct cost is treated as:
Ans. Expense.
101. Which of the following is a capital expenditure?
Ans. Purchase of building.
102. Mr. A recorded a cash payment of RS. 300,000 as
salaries. Both the salaries and cash account were debited.
What would be the credit effect of journal entry to rectify this
error, if there is suspense account in trial balance?
Ans. Salaries account.
103. Which of the following is an error of Omission?
Ans. A payment to a debtor Mr. A is recorded in the account of another
debtor Mr. B
104. A receivables ledger control account had a closing
balance of Rs. 9,000. Cash sales of Rs. 500 had been omitted
to record in this control account. What should be the correct
balance of receivables control account?
Ans. Rs. 900 debt.
105. Unconsumed shipping supplies are considered as:
Ans. Current asset.
106. Which of the following is an example of direct
materials cost ?
Ans. A piece of wood for the production of chair.
107. Electricity expense is a -------.
Ans. Revenue expenditure.
108. In a manufacturing concern, rent of office building is included
in -----.
Ans. Operating expense.
109. Factory overhead is a/an:
Ans. Cost.
110. Purchases Rs. 500, carriage outward Rs. 50, Gross sales
RS. 700 and gross profit Rs. 100, net purchases=?
Ans. Rs. 50
111. Income =?
Profit – expenses
112. When the sum of more than one error
cancels the accounting effect of each other, it is
called?
Compensating error
113. Control accounts are maintained for all
of the following EXCEPT;
Depreciation
114. Expired portion of direct cost is a part of _____.
Cost of sales
115. Control accounts are maintained for all
of the following EXCEPT;
Depreciation
116. Service fee received is a ______.
Revenue Expenditure
117. Cotton thread to make the fabric in
manufacturing concern is
Raw material
118. Control accounts are maintained for all of the
following EXCEPT
Depreciation
119. Mostly, control accounts are maintained for
(a. Trade receivables b. Trade payables c. Inventory)
All options
120. Which of the following is an error of principle?
A receipt of Rs. 50,000 from a debtor is recorded as Rs 5,000 in his
account
121. A payables ledger control account had a closing
balance of Rs. 9,000. A discount received of Rs. 500
had been omitted to record in this control account.
What should be the correct balance of payables
control account?
Rs. 8,500 credit
122. Expired portion of direct cost is treated as
Cost
123. Not realizable value of inventory =
Selling price – further costs to sell
124. Which of the following should be debited for
issue of raw material to production department in
manufacturing concern?
Finished goods account
125. Under periodic system of recording
inventory purchase of inventory is recognized as
________
Stock
126. Purchase of building costing Rs 500,000 is
recorded in repairs account. What will be its effect on
net profit?
No effect
127. Which of the following should be debited on sale
of completed goods on cash basis in manufacturing
concern?
Cash account
128. If some financial information is completely
forgotten to record in the books of original entry. Such
error is known as
Error of omission
129. Which of the following should be credit on
sale of completed goods on credit basis in
manufacturing concern?
Sales Account
130. Cost of inventory =?
Selling – Further costs to sell
131. Shipping supplies consumed is considered as?
Selling expense
132. Expired portion of direct cost is treated as
Expense.
133. Discount received from a creditor is credited
under main head:
Income
134. Accumulated depreciation of furniture is a/an
Contra asset account
135. If Work in Process closing inventory is provided
in trial balance, then that in inventory is treated in:
Balance Sheet only
136. Factory overhead is a/an.
Cost
137. Purchases Rs.500, Carriage outward Rs.50,
Gross Sales Rs. 700 and Gross
Profit Rs. 100. Net Purchases =?
Rs. 50
138. Carriage inward is debited under main head:
Expenses
139. Capital introduced by the owner is a
Capital Receipt
140. Factory overhead cost = Power & fuel cost +.
Indirect material cost
141. Consumed direct supplies are considered as:
Cost of sales
142. All of the following items may appear in Trade
payable control account
EXCEPT:
Bad debts
143. When correct accounting effect (Dr/Cr) is given in
the wrong accounting head as well as the wrong main
head, it is known as:
Error of principle
144. The unexpired portion of direct cost is treated as:
Assets
145. A control account is an individual account that
appears in the.
General ledger
146. Mr. X receives a discount of Rs. 50 from a
supplier.
The discount is debited
To discount allowed account. What will be its
effect on net profit?
Understated by Rs. 100
147. A creditors’ control account is used to record all
the transactions related to:
Credit purchases
148. While preparing a Debtors Control Account,
Credit side posted items cause:
Decrease in debtors’ balance
149. Which of the following is a Revenue receipt?
. Sales revenue
150. Direct cost is also known as:
Prime cost
151. A minor repair to a photocopy machine was paid
in cash. Correct entry
Was made to cash account but no entry was made to
other account. What will be the debit effect of journal
entry to rectify this error, if there is suspense account in
trial balance?
Photocopy machine repair account
152. A new accountant of ABC Corporation has
prepared the trial balance. But
There is difference in total of both sides of trial balance:
such Difference Can be due to:
All of the given options
153. Mostly, control accounts are maintained for:
(a. Trade receivables b. Trade payables c. Inventory)
All of the given options
154. When correct accounting effect (Dr/Cr) is
given in the wrong accounting Head but the main
head remains correct, is known as:
Error of commission
155. If the debit side of trial balance is heavier
than the credit side, suspense
Account will be written on
Credit side
156. Purchases Rs.500, Return inward Rs.50, Gross
Sales Rs. 700 and Gross Profit Rs. 100. Net Purchases
=?
Rs.500
157. All of the following items appear on
credit side of Trade receivable
Control account EXCEPT
Cheques dishonored
158. Purchase return account is a/an .
Contra item
159. Which of the following Organization converts
raw material into finished? Goods?
Manufacturing concern
160. If the credit side of trial balance is heavier than
the debit side, suspense
Account will be written on
Debit side
161. Carriage outward is debited under main head:
Expenses
162. In a manufacturing concern, rent of office building
is included in
Operating expense
163. Income =?
Profit – expenses
164. A payables ledger control account had a
closing balance of Rs 9,000. A
Credit purchase of Rs. 500 had been omitted to
record in this control Account. What should be the
correct balance of payables control account?
Rs. 9,500 credit
165. All of the following items may appear in Trade
payable control account
EXCEPT:
Cash purchases
166. Which of the following is an error of principle?
Purchases of vehicle is recorded in repairs account
167. When correct accounting entry is recorded
in the books of accounts but the amount in both
according effect (Dr & Cr) is wrong, it is known
as:
Error of original entry
168. Total factory cost = Prime cost + .
Factory overhead cost
169. Unconsumed shipping supplies are considered as:
Current asset
170. Leather to make jackets in manufacturing
concern is:
Raw material
171. Which of the following is/are the
function of financial accounting?
All of the given options.
172. Work in process closing inventory is a/an:
Asset
173. A payables ledger control account had a closing
balance of Rs 9,000. A credit sales of Rs. 500 had
been omitted to record in this control account. What
should be the correct balance of payables control
account?
Rs. 9,000
174. Note (33 & 42 credit purchases = (payable
control account) and
credit sales = (receivables control account).
175. A debtors’ control account is used
to record all the transactions related
Credit sales
176. Discount allowed to a debtor is Debited under
main head:
Expenses
177. A receivables ledger control account had a
closing balance of Rs. 9,000. A dishonored cheque of
Rs. 500 had been omitted to record in the control
account. What should be the correct balance of
receivables control account?
Rs. 9,500 debit
178. Unconsumed direct supplies are considered as:
Inventory
179. Unfinished goods are called.
Work in process
| 180. 500. | Salaries expense of Rs. 5,000 is recorded as Rs. |
Overstated by Rs. 4,500
181. All of the following items may appear in Trade
receivable control account
EXCEPT:
Credit Purchases
182. Expenditure incurred to acquire the patent right
for the business is an example of:
Capital expenditure
183. Loss on revaluation of fixed asset should be
charged to:
Profit and loss account
184. While preparing a Debtors Control Account,
Debit side posted items cause:
Increase in debtors’ balance
185. Expenses are also known as:
Expired portion of cost
186. An income statement is prepared for a specific
period, which is also known as:
Reporting period
187. Which of the following is a Capital expenditure?
Purchase of a building
188. A purchase of plant and machinery is a
Capital Expenditures
189. Discount allowed to a debtor is credited under
main head:
Expenses
190. Which of the following is Revenue expenditure?
Payment of salaries
191. In a trading concern, salaries of marketing staff
are included in
.
Operating expense
192. Cotton thread to make fabric in manufacturing
concern is:
Raw material
193. Mr. A recorded a cash payment of Rs. 300,000 as
salaries. Both the salaries and cash account was
debited. What would be the credit affect of journal?
entry to rectify this error, if there is suspense account
in trial balance?
Cash account
194. A receivables ledger control account had a
closing balance of Rs. 9,000.Cash sales of Rs. 500
had been omitted to record in the control account.
What should be the correct balance of receivables
control account?
Rs. 9,000 debit
195. Factory overhead cost = Power & fuel cost +.
Other indirect cost
196. A new accountant of ABC Corporation has
prepared the trial balance. But There is difference in
total of both sides of trial balance; such amount of
difference shall be named as:
Suspense account
197. In a manufacturing concern, salary of supervisor
is included in .
Operating expense
198. Mr. Y has recorded a stationary expense of Rs.
50 as salaries expense. What Will be its effect on net
profit?
No effect
199. Control accounts are maintained for all of the
following EXCEPT:
Depreciation
200. Service fee received is a .
Revenue Receipt
201. Which of the following is a Capital receipt?
Long term loan from bank
202. Sales Rs. 500, Return inwards Rs. 50, Gross
Profit Rs. 100, Net Sales =?
Rs. 450
203. Expenses =?
Income – profit
204. Office supplies consumed is considered as:
Admin expense
205. Bank charges of RS. 1,000 have been
deducted by the bank without our Knowledge.
What will be its effect on net profit?
No effect
206. Wood used to make a table in manufacturing
concern is:
Raw material
207. Sole proprietor can prepare following financial
statements as final accounts:
Balance sheet & income statement
208. Which one of the following is INCORRECT
about closing stock? It reduces the resources of
business Prime cost = Direct material cost +
Direct labor cost
209. Mr. A recorded a cash payment of Rs. 300,000 as
salaries. Both the Salaries And cash account was
debited. What would be the debit affect of journal
entry to rectify this error, if there is suspense account
in trial balance?
Suspense account
210. While preparing a Creditors Control Account,
Debit side shows the items that Will cause
Decrease in creditors’ balance
211. Sales return account is a/an .
Contra item
212. If Work in Process closing inventory is
provided as additional information,Other than trial
balance, then that inventory treated in:
Profit and loss account only
213. Electricity expense is a .
Revenue Expenditure
| 214. . | Current year’s depreciation of furniture is a/an |
215. Carriage inward should be the part of:
Direct cost
216. Control accounts are usually maintained by:
Large organizations
217. Purchase of building costing Rs. 500,000
is recorded in repairs account. What will be?
Its effect on net profit?
No effect
218. Which of the following is an error of original
entry?
A receipt of Rs. 50,000 from a debtor is recorded as Rs. 5,000 in
his account.
219. A payables ledger control account had a
closing balance of Rs. 9,000. Cash Purchase of Rs.
500 had been omitted to record in this control
account. What should be the correct balance of
payables control account?
Rs 500 credit
220. Drawings account is a/an
Contra item
221. Expenses =?
Income – profit
222. All of the following items appear on
debit side of Trade receivable control account
EXCEPT:
Discount allowed
223. Mostly, control accounts are maintained for:
(a. Trade receivables b. Trade payables c. Inventory)
All of the given options
224. Purchases Rs. 500, Returns outward Rs. 50,
Gross Sales Rs. 700 and Gross Profit Rs. 100, Net
Purchases =?
450
225. If cost of sales is Rs. 90,000, income from sales
Rs. 200,000 and operating expenses Rs.100,000.
What will be net result? Select correct option:
Rs. 5,000 Losses
226. Work in process closing inventory is a/an:
Asset
227. Which of the following is Revenue expenditure?
Sales revenue
228. A payment of Rs. 1,000 to a creditor Mr. A is
recorded in the account of another creditor Mr. B.
What will be its effect on net profit?
Rs. 1,000 Owner's equity.
229. Which of the following Organization converts
raw material into finished goods?
Manufacturing concern
230. Capital introduced by the owner is a _________.
Capital Receipt
231. When correct accounting entry is recorded
in the books of accounts but the amount in both
accounting effect (Dr & Cr) is wrong, it is
known as:
Error of commission
232. Which of the following is an error of original
entry?
A payment to a debtor Mr. A is recorded in the account of another
debtor Mr. B
233. Mr. X receives a discount of Rs. 50 from
a supplier. The discount is debited to discount
allowed account. What will be its effect on
net profit?
Understated by Rs.100
234. While preparing a Creditors Control Account,
Credit side shows the items that will cause:
Raw material
235. Service fee received is a ________________.
Revenue Expenditure
236. Work in process closing inventory is a/an:
Asset.
237. Factory overhead cost = Power & fuel cost +
___________.
Indirect material cost
238. A payables ledger control account had a closing
balance of Rs.9, 000. A discount received of Rs.500
had been omitted to record in this control account.
What should be the correct balance of payables
control account?
Rs. 8,500 credit
239. Unconsumed shipping supplies are considered as:
Current asset
240. Sales return account is a/an __________.
Contra item
241. Unconsumed office supplies are considered as:
Raw martial
242. Unfinished goods are called:
Raw martial
243. If the debit side of trial balance is heavier than
the credit side, suspense account will be written
on ________________.
Credit side
244. Accumulated depreciation of furniture is a/an
_________.
Contra asset account
245. Which of the following is a Capital receipt?
Long term loan from bank
55 | P a g e
Knowledge For Us
246. Discount received from a creditor is Debited under main
head:
Assets
247. While preparing a Debtors Control Account, Debit side
posted items cause:
Increase in debtors’ balance
248. An income statement is prepared for a specific period,
which is also known as:
Financial health
249. A minor repair to a photocopy machine was paid in
cash. Correct entry was made to cash account but no
entry was made to other account. What will be the credit
effect of journal entry to rectify this error, if there is
suspense account in trial balance?
Cash account
250. When correct accounting effect (Dr/Cr) is given in the
wrong accounting head as well as the wrong main head, it is
known as:
Error of commission
251. Mr. A recorded a cash payment of Rs.300, 000 as salaries.
Both the salaries and cash account were debited. What would
be the credit effect of journal entry to rectify this error, if there
is suspense account in trial balance?
Cash account
252. Purchase of building costing Rs. 500,000 is recorded in
repairs account. What will be its effect on net profit?
Overstated by Rs. 500,000
253. Control accounts are usually maintained by:
Large organizations
254. All of the following items may appear in Trade
receivable control account EXCEPT:
57 | P a g e
Knowledge For Us
Cash relievable in debit
255. A new accountant of ABC Corporation has prepared
the trial balance. But there is difference in total of both sides
of trial balance, such amount of difference shall be named
as:
Suspense account
256. Bank charges of RS. 1,000 have been deducted by the
bank without our knowledge. What will be its effect on net
profit?
Understated by Rs. 1,000
257. Which of the following is an error of omission?
Bank charges being deducted by the bank without our knowledge
258. If someone financial information is completely
forgotten to record in the books of original entry, such
error is known as:
ERROR OF OMISSION
259. In a manufacturing concern, rent of the office
building is included in:
OPERATING EXPENSES
260. Expired portion of direct cost is a part of ---------
Cost of sales
261. All of the following items may appear in Trade payable
account Expect:
Bad debts
262. Expired portion of direct cost is treated as:
Expense
263. In a manufacturing concern, rent of the office
building is included in:
OPERATING EXPENSES
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264. Income=
Profit-expenses
265. A payable ledger control account had balance of
Rs9000.A credit purchase of Rs500 had been omitted to
recorded in the control account what should be the correct
balance of payable control account?
Rs.9000credit
266. All of the following items may appear in Trade payable
control account Except:
Cash purchases
267. When correct accounting entry is recorded in the
books of accounts but the amount in both accounting
effect (Dr & Cr) is wrong. It is known as
Error of original entry.
| 268. | Total factory cost=prime cost+ factory overhead cost |
(a. Trade receivables b. Trade payables c. Inventory)
269.
All of the given option
270. If the credit side of the trial balance is heavier than the
debit side suspense’s account will be written on -------
Both debit and credit side
271. Carriage inward is debited under main head:
EXPENSES
272. Unconsumed shipping supplies are considered as:
Current Assets
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273. When correct accounting effect (Dr/Cr) is given in the
wrong accounting head but the main head remains correct is
known as:
Error of commission
274. Leather to make in manufacturing concern is:
Raw material
275. Which of the following is/are the function of financial
accounting?
All of the given options
276. When correct accounting effect (Dr/Cr) is given in the
wrong accounting head as well as the wrong main head, it is
known as:
Error of principle
277. Work in process closing inventory is a/an:
asset
278. A debtor’s account is used to record all the transaction
related to:
Credit sales
279. Purchase Rs500, carriage outward rs.50 gross sales Rs 700
and gross profit Rs 100 net purchase=?
500 RS
280. Discount allowed to a debtor is debtor under main head:
Expenses
281. A receivable ledger control account had a closing
balance of rs9000.A dishonored cheque of Rs 500had been
omitted to record in this control account what should be the
correct balance of receivable control account?
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9500 debt
282. Purchase return account is a /an
Contra items
283. Factory overhead is a/an
cost
284. Unfinished goods are called:
WORK IN Process
285. Salaries expenses of Rs 5000 are recorded as Rs 500
what will be its effect on net profit?
Overstayed by rs.4500
286. All of the following items may appear in trade payable
account
Expect:
Bad debts
287. Discount received from a creditor is credited under main
head:
Income
288. Capital introduced by the owner is a
Capital Receipt.
289. Factory overhead cost =power & fuel cost +
Indirect material cost
290. Consumed direct supplies are considered as:
Cost of sales
291. The unexpired portion of direct cost is treated as:
Assets
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| 292. ------ | A control account is an indivual account that appears in the |
293. Mr. receives a discount of Rs 50 from a supplier. The
discounts are debited to discount allowed account. What will
effect on net profit?
Understated by Rs 100
294. A creditor’s control account is used to record all the
transaction related to:
credit purchase
295. Which of the following Is a revenue receipt?
Sales Revenue
296. Direct cost is also known as
Prime cost
297. Office supplies consumed is considered as:
cost of sales
298. Sales return account is a/an------------
Contra items
299. Which of the following is a capital receipt?
Long term loan from bank
300. Bank charges of Rs1000 have been deducted by the
bank without our knowledge. what will its effect on net
profit?
Overstated by Rs 1000
301. A new accountant of ABC corporation has prepaid
the trial balance. but there is difference I total of both sides
of trial balance such difference can be due to:
All of the given option
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302. Mostly, control accounts are maintained for:
(a. Trade receivables b. Trade payables c. Inventory)
All of the given options
303. A purchase of plant and machinery is a -------------------
Capital expenditure
304. If the debit side of trial balance is heavier than the credit
side, suspense account will be written on------,
Credit side
305. If the credit side of trial balance is heavier than the debit
side, suspense account will be written on
Debit side.
306. All of the following items may appear in Trade
receivable control account Expect:
Checkups dishonored
307. Which of the following organization converts raw
material into finished goods?
Manufacturing concern
308. Expenditure incurred to acquire the patent right for the
business is an example of:
Capital expenditure
309. Loss on revaluation of fixed asset should be charged to:
Profit and loss account
310. When correct accounting entry is recorded in the
books of accounts but the amount in both accounting
effect (Dr & Cr) is wrong:
Error of original Entry
311. A new accountant of ABC corporation has prepaid
the trial balance. but there is difference in total of both
sides of trial balance such difference shall be named as:
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Suspense account
312. Discount received from a creditor is Debited under main
head:
liabilities
313. Electricity expense is a____
Revenue Expenditure
314. Control accounts are maintained for all the following
Except:
Deprecation
315. All of the following items may appear in Trade receivable
control account Expect:
Cash sales
316. Discount allowed to a debtor is credited under main head:
Assets
317. All of the following items may appear in Trade
receivable control account Expect:
Credit purchase
318. A control account is an individual account that appears in
the ---
-----------
General ledge
319. Which of the following is an error of commission?
A payment to a debtor Mr. A is recorded in the the
account of another Mr.
320. Which of the following should be considered as ready for
sales in manufacturing concern?
Finished goods
321. Mr. A recorded a cash payment of Rs.300, 000 as salaries.
Both the salaries and cash account Were debited. What would
be the credit effect of journal entry to rectify this error, if there
is suspense account in trial balance?
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Cash account
322. A receivables ledger control account had a closing balance
of Rs.9, 000. A dishonored cheque of Rs. 500 had been omitted
to record in this control account. What should be the correct
balance of receivables control account?
Rs. 8,500 credit
323. In a trading concern, salaries of marketing staff are
included in
_________.
Operating expense
324. Purchase return account is a/an __________.
Expense item
325. Cotton thread to make fabric in manufacturing concern is:
Raw material
326. Sole proprietor can prepare following financial
statements as final accounts:
Balance sheet & income statement
327. A debtors’ control account is used to record all the
transactions related to:
Credit sales
328. Shipping supplies consumed is considered as:
Selling expense
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