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Consider the following data: Particulars Rs. Assets ? Owner's equity 35,000 Liabilities 90,000
Rs. 35,000
Rs. 55,000
Rs. 1, 25,000
Rs. 1, 05,000 (Right Answer)
The totals of return inwards Journal (day book) are
credited to the trade receivables control account
debited to the trade payables control account (Right Answer)
debited to the trade receivable control account
credited to the trade payables control account
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
The third party who owes money to the business is called:
Debtor
Creditor
Stakeholder (Right Answer)
stockholder
Which of the following voucher is used to record receipt of cash?
Journal Voucher
Receipt Voucher (Right Answer)
Payment Voucher
Nominal Voucher
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 (Right Answer)
Fluctuation
None of the given options
Find out the missing value of an Accounting Equation with the help of given data: Furniture Rs. 90,000 Cash Rs.100, 000 Debtors Rs.10, 000 Other Assets Rs. 1,000 Owner’s equity Rs. 90, 000 Liaibilities ?
Rs. 201,000
Rs. 111, 000 (Right Answer)
Rs. 290, 000
Rs. 291, 000
From the given particulars, calculate the rate of depreciation under the fixed installment method of depreciation:
Cost of Asset = Rs. 2,000
Residual Value = Rs. 400
Useful Life = 4 years
20 % (Right Answer) 30% 25% 33%
Which of the following formula is used to calculate the cost of goods sold?
Cost of goods available for sale minus net purchases plus ending inventory
Beginning inventory plus net purchases plus freight in minus ending inventory (Right Answer)
Beginning inventory minus net purchases minus ending inventory
Beginning inventory minus ending inventory
The investment of Rs. 10,000 made by the owner in business will have an effect on which of the following accounts?
Cash Account & Capital Account (Right Answer)
Cash Account & Expense Account
Capital Account & Revenue Account
Capital Account & Expense Account
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
Error of Original entry (Right Answer)
Which of the following is the first book to record a transaction?
Trial Balance
Journal (Right Answer)
Trial Balance
Balance Sheet
Which of the following would NOT be considered as a component of 'cost' of stock?
Salaries of selling staff (Right Answer)
Transportation inward costs
Import duties
Purchase price
Which of the following is (are) characteristic(s) of Bad Debt?
It is a definite loss to the business
It must be shown in Profit & loss account
No provision is necessary for it
All of the given options (Right Answer)
The difference between Management Accounting and Financial Accounting is that:
Financial accounting is used by managers to plan strategies in the area of company growth
Financial accounting is used by external investors to gain information about the company
Managerial accounting is used by the internal managers to plan for daily business activities
Both 2 and 3 (Right Answer)
If Current Assets Rs. 100,000, Current Liability Rs. 50,000 and Fixed Assets Rs. 2, 00,000. Calculate working capital.
Rs. 50,000 (Right Answer)
Rs. 1, 00,000
Rs. 1, 50,000
Rs. 3, 00,000
Which of the following is NOT a revenue expenditure?
Petrol consumed in motor vehicles (Right Answer)
Cost of saleable goods
Bad debts
Premium given on lease
The Amount changed to deprecation goes on declining in:
Depreciation fixed method
Annuity method
Written-down value method (Right Answer)
Straight line depreciation method
If Cost of sales in Rs. 90,000, income from sales Rs. 200,000 and operating expenses Rs.100,000,. What will be net results?
Rs. 5,000 Losses
Rs. 10,000 Profits (Right Answer)
Rs. 1,95,000 Profits
Rs. 1,95,000 Losses
The main purpose of ______________ is to as certain true result of the business operation during particular period of time.
Cost Accounting
Financial Accounting (Right Answer)
Managerial Accounting
Tax Accounting
