MGT101 – Financial Accounting MCQ (Online quiz # 3rd)

Question # 1 of 20
What should be credited, if salary is paid to Sohail?
Select correct option:
Sohail account
Salaries account
Cash accountDrawings account
Question # 2 of 20
Which of the following is NOT correct?
Select correct option:
Decrease in Assets will be credit
Decrease in Liabilities will be debit
Decrease in Expenses will be debitDecrease in Revenue will be debit
Question # 4 of 20
Which of the following is/are the example/s of Intangible Asset?
Select correct option:
Copy rights
Good will
Patent rights
All of the given options

Question # 5 of 20
Which of the following is a FIRST product of accounting cycle?
Select correct option:
Voucher
General Journal
General Ledger
Financial Statements
Question # 6 of 20
What will be debited, if Mohsin commenced business with cash?
Select correct option:
Cash account
Capital account
Drawings account
Proprietor account
Question # 7 of 20
Assets are divided in which of the following categories in balance sheet.
Select correct option:
Current assets, Long term assets and capital assets
Current assets, Long term assets and fixed assets
Current assets, Quick assets and business debts
Current assets, Fixed assets and deferred cost

Question # 8 of 20
Find out the missing value of an Accounting Equation with the help of given data: Cash Rs.100, 000 Debtors Rs.10, 000 Other Assets Rs. 1,000 Owner��s equity Rs. 1, 000 Liabilities ?
Select correct option:
Rs. 12,000
Rs. 11,000
Rs. 110,000Rs. 111,000
Question # 9 of 20
What will be debited, if business purchased Vehicle on cash?
Select correct option:
Vehicle account
Cash account
Business account
Bank account
Question # 10 of 20
Franchise rights, goodwill and patents are the examples of:
Select correct option:
Liquid assets
Tangible assets
Intangible assetsCurrent assets
Question # 11 of 20
Consider the following data: Particulars Rs. Assets ? Owner’s equity 35,000 Liabilities 90,000
Select correct option:
Rs. 35,000
Rs. 55,000
Rs. 1, 25,000Rs. 1, 05,000
Question # 12 of 20
What should be credited, if rent paid in cash?
Select correct option:
Landlord’s account
Rent account
Cash accountAccounts receivable account
Question # 13 of 20
Consider the following data: Particulars Rs. Assets 75,500 Owner’s equity ? Liabilities 40,200
Select correct option:
Rs. 35,300
Rs. 55,000
Rs. 125,000
Rs. 115,700
Question # 14 of 20
Find out the missing value of an Accounting Equation with the help of given data: Total Assets Rs. 34,500 Accounts payable Rs. 1, 000 Other liabilities Rs. 11,500 Owners equity ?
Select correct option:
Rs. 22,000
Rs.24, 000
Rs. 45,000
Rs. 46,000
Question # 15 of 20
Which of the following item is found in a Journal entry? (1) Date of each transaction (2) Rupee amount of each debit and credit (3) Explanation of each transaction
Select correct option:
1 only
1 & 2 only
2 & 3 only
1, 2 & 3

Question # 16 of 20
Which one of the following will result in increase in revenues?
Select correct option:
Purchased fixed asset
Received discountPayment to creditors
Return of goods, sold on credit
Question # 17 of 20
Amount generated from sales in a business is called:
Select correct option:
Income
Net Income
Gross Profit
Operating profit
Question # 18 of 20
The expenses which are NOT paid out of Gross Profit is classified as:
Select correct option:
Direct Expenses
General Expenses
Financial Expenses
Selling Expenses
www.VUsolutions.com
Question # 19 of 20
The process of transferring journal entry information to the ledger is called:
Select correct option:
Journalizing
PostingBalancing
Analyzing
Question # 20 of 20
Which of the following is NOT correct?
Select correct option:
Decrease in Assets will be credit
Decrease in Liabilities will be creditDecrease in Expenses will be credit
Decrease in Revenue will be debit