Choose the correct/best option from given MCQs and put youranswer in tabular form as drawn above.
1. Which of the following account balance is shown on debitside of Trial Balance? (It is assumed that all account balances are shown on normalbalance).
a. Capital account
b. Sundry creditors account
c. Accounts payable account
d. Sundry debtors account
2. 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?
a. Rs.195,000 Losses
b. Rs.195,000 Profits
c. Rs.105,000 Profits
d. Rs.105,000 Losses
3. In which of the following statement opening stock isshown?
a. Profit and loss account
b. Balance sheet
c. Cash flow statement
d. Owner's equity
4. Working capital Rs. 20,000, Current liabilities Rs. 30,000and fixed assets Rs. 100,000; calculate current assets?
a. Rs. 10,000
b. Rs. 50,000
c. Rs. 110,000
d. Rs. 120,000
5. Which of the following content(s) is (are) included in theCost of goods sold?
a. Opening stock
b. Purchases
c. Freight in
d. All of the given options
6. Which of the following Organization converts raw materialinto finished goods?
a. Trading concern
b. Manufacturing concern
c. Merchandising concern
d. Service concern Financial Accounting (mgt101) Quiz 02 Spring Semester 2009
7. Which of the following is an example of direct materialscost?
a. Production worker's wages
b. Depreciation expenses
c. A piece of wood for the production of chair
d. Polish and finishing material for chair
8. In cost of goods sold statement, the 'cost ofmaterial consumed' is equal to:
a. Opening raw material inventory + Purchases - Endingraw material inventory
b. Opening raw material inventory - Purchases + Ending rawmaterial inventory
c. Ending raw material inventory - Opening raw materialinventory - Purchases
d. Ending raw material inventory + Opening raw materialinventory + Purchases
9. What would be the value of Total Factory Cost, if cost ofraw materials, direct labor costs, and manufacturing overhead costs are Rs.80,000,Rs.50,000, and Rs.60,000 respectively?
a. Rs.130, 000
b. Rs.110, 000
c. Rs.140, 000
d. Rs.190, 000
10. Which of the following assets are shown at written downvalue in Balance Sheet?
a. Current assets
b. Liquid assets
c. Floating assets
d. Fixed assets
11. An asset cost Rs. 50,000, has an estimated residual valueof Rs.1, 500, and an estimated useful life of 5 years. What is the depreciationrate?
a. 20.0%
b. 25.0%
c. 35.5%
d. 50.4 %
12. Calculate depreciation of machine after first year byusing diminishing balance method with the help of given data? 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% Financial Accounting (mgt101) Quiz 02 Spring Semester 2009
a. Rs. 160,000
b. Rs. 11,840
c. Rs. 34,560
d. Rs. 34,860
13. Which one of the following is INCORRECT about closingStock?
a. It is added into current assets
b. It is deducted from material available for use
c. It becomes opening stock of next year
d. It increases the owner's equity of business
14. In the cost of goods sold statement, Cost of directmaterial consumed + Direct labor= ___________
a. Conversion cost
b. Prime cost
c. Total factory cost
d. Cost of goods manufactured
15. The total of all costs incurred to convert raw materialinto finished goods is known as:
a. Prime cost
b. Conversion cost
c. Sunk cost
d. Opportunity cost