MGT101 Quiz #4 2016 Solved

MGT101 Quiz #4 2016 Solved

Question # 3 of 10 ( Start time: 01:44:15 PM, 08 August 2016 ) Total Marks: 1 Which of the following is NOT a type of capital in partnership? Select correct option

Fixed capital Fluctuating capital Share capital None of the given options

Question # 4 of 10 ( Start time: 01:45:32 PM, 08 August 2016 ) Total Marks: 1 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 is a type of business formed under the Companies Ordinance 1984? Select correct option

Sole-Proprietorship Partnership Joint Stock Company All of the given options

Dividend is approved by the shareholders at the recommendation of the board of directors in which of the following meeting: Select correct option

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

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

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

Which of the following will be credited, if cash is drawn by Proprietor? Select correct option

Proprietor’s drawing Proprietor’s cash Proprietor’s capital Proprietor’s income

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

Shares can be issued________ Select correct option

On discount On premium On face value All of the given options

Which of the following is/are included in Cost of goods sold? Select correct option

Wages paid to labor Salaries paid to supervisors of labor Salaries of officers working for the manufacturing of goods All of the given options

Number of members in a private limited company is Select correct option

2-50 1-7 2-25 1-15

Partner’s current accounts are opened when their capital accounts are:

Select correct option

Fixed Fluctuating Working Capital Work in progress capital

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

All of the following are shown at ‘Liabilities and Owner’s Equity’ side of balance sheet except: Select correct option

Trade creditors Outstanding expenses Provision for doubtful debts Short term loans

"Contingencies reserve" is an example of which of the following type of reserve: Select correct option

general reserve specific reserve capital reserve main reserve

Which of the following will be credited if shares are issued against cash? Select correct option

Bank account Share capital account Share premium account Cash account

If a partnership firm earns Rs. 12,000 profit, and profit distribution ratio of partner a,b and c is 2:4:6. What will be the profit of partner c? Select correct option

Rs. 2,000 Rs. 4,000 Rs. 6,000 None of the given options

Which of the following is/are the subsidiary book(s) which is/are maintained in case of Creditors control account?

All of the given options

Which of the following items is not included in Debtors control account?

Returns inward

Discount allowed

ash received from debtors

Cash sales

Current assets include all of the following EXCEPT:

Cash in hand

Prepaid wages

Unearned rent

trade debtors

Which of the following would NOT be considered as a component of 'cost' of stock?

Transportation inward costs

Import duties

Purchase price

Salaries of selling staff

Amount of new provision + Amount of bad debts) < Amount of old provision then the resulting figure will be shown at:

Debit side of Profit & Loss account

Credit side of Profit & Loss account

Asset side of Balance Sheet

Liability side of Balance Sheet

Which of the following account is credited, when the bad debt for which provision is already made is confirmed?

Debtors account

Provision for Bad Debts account

Bad debts account

None of the given options

If a partnership firm earns Rs. 12,000 profit and profit distribution ratio of partner a,b and c is 2:4:6. What will be the profit of partner b?

Rs. 2,000

Rs. 4,000

Rs. 6,000

None of the given options

distribution of dividend" is the concept applied in which the following organization:

commerical organization

NGO

sole proprietorship

Partnership

The main objective of financial reporting is to provide:

Essential information to internal users of financial reports.

Useful economic information about the business to the external parties for sound financial decisions.

Information to internal users about the cash position of the business.

Information to the Securities Exchange Commission (SEC).

Inventory is considered a current asset because it:

Often reflects the most current trends and styles

Was purchased during the current year, usually

Will be converted into cash in the course of the company's operating cycle

Can be returned to the supplier for a cash refund

In manufacturing concern, conversion cost of the company will be equal to?

material cost plus labour cost

material cost plus factory overhead

material cost plus labour cost plus factory overhead

• labour cost plus factory overhead

Assets, in Balance Sheet of a company are normally arranged in the order of:

Liquidity

Management policy

Book Value

Market Value

Which of the following will be credited, if cash is drawn by Proprietor?

Proprietor’s drawing

Proprietor’s cash