Purchase of raw material
Any tax/freight paid on purchases
Any expense incurred on carriage/transportation of raw material purchased items
All of the given options (Right Answer)
Question No. 2 of 20
Which of the following voucher is used to record transactions that do not affect bank & cash?
Journal Voucher (Right Answer)
Receipt Voucher
Payment Voucher
Nominal Voucher
Question No. 3 of 20
Rs. 400
Rs. 2,500
Rs. 2,900 (Right Answer)
Rs.20, 900
Question No. 4 of 20
What would conversion costs if costs of raw materials, direct labor costs, and manufacturing overhead costs Rs.80,000, Rs.50,000, and Rs.60,000, respectively?
Rs.130, 000
Rs.110, 000 (Right Answer)
Rs.140, 000
Rs.190, 000
Question No. 5 of 20
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:
Bank statement
Income statement
Financial statement
Bank Reconciliation statement (Right Answer)
Question No. 6 of 20
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:
Current liability
Current assets (Right Answer)
Fixed assets
Long-term assets
Question No. 7 of 20
An accounting system is used by a business to:
Analyze transactions
Handle routine bookkeeping tasks
Structure information
All of the given options (Right Answer)
Question No. 8 of 20
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 ?
Rs. 4,13,500 (Right Answer)
Rs. 4, 25,000
Rs. 3, 36,500
Rs. 61,500
Question No. 9 of 20
Furniture account (Right Answer)
Cash account
Business account
Bank account
Expenditure incurred in acquiring the patent right for the business is an example of:
Revenue expenditure (Right Answer)
Capital expenditure
Deferred revenue expenditure
Administrative expenditure
Question No. 11 of 20
Total assets - Total liabilities =?
Owner’s Equity (Right Answer)
Expenses
Retained earnings
Net profit
Question No. 12 of 20
What will be debited, if business bought goods on credit from Mr. Ali?
Purchases account (Right Answer)
Mr. Ali account
Cash account
Sales account
Question No. 13 of 20
Prepaid rent given in the Trial Balance will be treated as a (an):
Asset
Liability
Revenue (Right Answer)
Deferred expense
Question No. 14 of 20
A business event which can be measured in terms of money and must be recorded in books of accounts is called:
Condition
Transaction (Right Answer)
Information
Record
Question No. 15 of 20
Which one of the following is NOT a feature of sole proprietorship business.
Easy Formation
Easy Dissolution
Unlimited Liability
Separate Legal Entity (Right Answer)
Question No. 16 of 20
In which of the following statement opening stock is shown?
Profit and loss account
Balance sheet (Right Answer)
Cash flow statement
Owner’s equity
Question No. 17 of 20
The profitability of its business operations for a period of time
Its financial position at the end of an accounting period
Its cash receipts and cash payments during an accounting period (Not Sure)
None of the given options
Question No. 18 of 20
Which of the following is (are) example(s) of non distributable profit?
General reserve
Accumulated profit and loss (credit balance)
Revaluation reserves
None of the given options (Not sure)
Question No. 19 of 20
Which of the following Organization converts raw material into finished goods?
Trading concern
Manufacturing concern (Right Answer)
Merchandising concern
Service concern
In firms cash flow statements, which of the following would appear as a cash outflow?
The payments for share in a company whose shares are treated on a stock exchange
A decrease in trade debtors over the course of an accounting period
Money received as a result of issuing new shares
Money received as result of selling fixed assets (Not sure)
Which of the following particular/s is/are included in receipt voucher?
Name of organization
Bank receipt
Date
All of the given options (Right Answer)
Which of the following assets is most likely to appreciate rather than depreciate?
Land (Right Answer)
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?
A bank charges (Right Answer)
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:
Cost of goods sold (Right Answer)
Administrative expenses
Selling expenses
Marketing expenses
Bad debts written off (given in adjustment) always affect the:
Debtors account (Right Answer)
Creditors account
Cash account
Capital account
Carriage paid Rs. 50 for the newly purchased machinery if debited to carriage account will effect:
Only carriage account
Only machinery account (Right Answer)
Both carriage and machinery account
None of the given options
Cost of goods manufactured - opening work in process + ending work in process =?
Cost of goods sold
Prime cost
Conversion cost
Total factory cost (Right Answer)
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?
Rs. 1, 95,000 Losses (Right Answer)
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
III. IV. I. II.
I. II. III. IV.
III. II. IV. I. (Right Answer)
III. II. I. IV.
All of the below items are directly recorded by bank without intimating the business until the end of month, EXCEPT:
Bank Charges
Interest on Overdraft
Un-presented Cheques (Right Answer)
Direct Receipts
Which of the following is Not an Asset Account?
Plant & Machinery
Loan to XYZ co.
Cash at Bank
Loan from ABC co. (Right Answer)
A balance of pass book written in brackets ( ) by the bank is known as:
Favorable balance for customer(Right Answer)
Unfavorable balance for bank
Unfavorable balance for customer
None of the above
Which of the following is an example of direct materials cost?
Production worker’s wages(Right Answer)
Depreciation expenses
A piece of wood for the production of chair
Polish and finishing material for chair
other are non direct or factroy
Question No. 7 of 20
Expenditure incurred in acquiring the patent right for the business is an example of:
Revenue expenditure
Capital expenditure(Right Answer)
Deferred revenue expenditure
Administrative expenditure
Cash book is a part of _______ .
Voucher
General Journal
General Ledger (Right Answer)
Trial Balance
What will be the entry of disposal of an asset at cost price?
Debit Fixed Asset Disposal and Credit Fixed Asset Cost
Debit Accumulated Dep. and Credit Fixed Asset Disposal
Debit Cash / Bank and Credit Fixed Asset Disposal
None of the given options
ABC co. has a capital of Rs. 100,000, Long Term Liabilities Rs. 50,000, net profit during the year Rs. 15,000 and the amount of total liabilities is Rs 175,000. What will be the amount of Current Liabilities?
Rs. 20,000
Rs. 150,000
Rs. 10,000 (Right Answer)
Rs. 25,000
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 (Right Answer)
Rs. 225,000
The Sales Returns Day Book would include:
Goods bought on credit
Fixed Assets bought that are inappropriate for business
Stock that customers have returned (Right Answer)
Goods bought on credit that are returned to the original supplier
Total Sales are calculated by adding:
Cash sales and cash received from debtors
Credit sales and cash received from debtors
Cash sales and credit sales (Right Answer)
Cash ales and credit purchases
In the cost of goods sold statement, the sum of labor cost and the factory over head is known as:
Conversion cost (Right Answer)
Prime cost
Total factory cost
Cost of goods manufactured
Outsider’s claim against the assets of the business is called:
Capital
Liability (Right Answer)
Expense
Income
Which of the following particular/s is/are included in payment voucher?
Name of organization
Cash payment
Date
All of the given options (Right Answer)
Goods returned by Mr. B amount to Rs. 4,000. The entry in the books will be:
Mr. B is Debit Sales Returns is Credit (Right Answer)
Sales Returns is Debit Mr. B is Credit
Mr. B is Debit Accounts Receivable Credit
Purchases Return Debit Mr. B is Credit
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:
Bank statement
Income statement
Financial statement
Bank Reconciliation statement (Right Answer)
Following information is available relating to a manufacturing concern: Cost of Goods Sold Rs. 245,000 Purchases Rs. 250,000 Freight Inward Rs. 5,000 Closing Stock Rs. 25,000 What will be the amount of Opening Stock?
Rs. 15,000 (Right Answer)
Rs. 10,000
Rs. 25,000
Rs. 20,000