WorksheetsSs1: Financial accounting exam
Total questions: 90
Worksheet time: 46mins
Financial accounting is the
(a)
Double entry is (a)
Identify five subsidiary books of account
(a)
The originator of Double Entry System
Lucas Pacioli
Marshall
Pikles
Batliboi
Establishment expenses of a new machine will be debited in ............. account
Expenses
Machine
Profit & Loss
None of the above
On sales of Rs. 1500 to A at 5% trade discount, the sales account will be -
Debited by Rs. 1425
Credited by Rs. 1425
Credited by Rs. 1500
Debited by Rs. 1575
The loss on sale of furniture is debited to ........... account
Profit and loss
Furniture
Depriciation
Trading
If Outstanding salary is given in trail balance with the date of commencement of financial year, it is shown in ........
Trading A/c
Profit & Loss A/c
Assets
Liabilities
If opening stock is Rs. 50,000, purchase is Rs. 4,20,000 and closing stock is Rs. 30,000, then what is the cost of goods sold-
Rs. 4,40,000
Rs. 4,70,000
Rs. 4,00,000
Rs. 5,00,000
A ______ is an artificial person which is recognized in law as a separate legal entity
partner
lawyer
company
corporation
what is journal?
Primary book
Secondary
third book
None
The process of writing the difference of totals on the shorter side of the account is known as – – – –.
(a)
The main objective of preparing a trial balance is to verify the – – – – accuracy of accounting entries.
(a)
A list of balances of all ledger accounts and cash book is called – – – –.
(a)
When trial balance does not match – – – –A/c is opened.
(a)
Returns Outwards A/c generally has a – – – – balance.
(a)
Cash A/c always has a – – – – balance.
(a)
– – – – balance of personal account represents the amount payable to him.
(a)
Wages paid for the construction of building were recorded in wages account. This is ______________
1) Error of omission
2) Error of commission
3) Compensating error
4) Error of principle
A dealer dealing in furniture business purchased furniture, recorded in furniture account.
1) There is an error in the above transaction, but trial balance will agree.
2) There is not any error in the above transaction, trial balance will not agree.
3) There is an error and trial balance will not agree
A bank reconciliation statement is
Part of the cash book
Part of Bank account
Part of financial statement
None of the above
A cash deposit made by business appears on the bank statement as _______ balance.
Debit
Credit
Expenses
Liabilities
What occurs when a customer has withdrawn more funds than were actually in the banking account resulting in the customer owing money to the bank?
Credit balance
Overdraft
Levies
Transactions
What do we call a cheque that the bank refused to pay the payee because the drawer has insufficient funds in his current account?
Stale cheque
Dishonoured cheque
Sad cheque
Dubious cheque
Which of the following is already recorded in the Cash at Bank account but not in the Bank Statement?
Bank charges
Dishonoured cheque
Uncredited cheque
Direct deposit
Which of the following is not recorded in the Cash at Bank account but already recorded in the Bank Statement?
Unpresented cheque
Direct payment
Uncredited cheque
Estimated sales value of an asset after its working is called (a) .
Discarding the old machinery, due to new invention, is called (a) .
In Straight line method, annual amount of depreciation remains (a) in comparison to diminishing balance method
The original cost of an asset is Rs. 1,20,000 and its Scrap Value is likely to be Rs.20,000 after its estimated useful life of 10 years, the annual depreciation written off will be (a) .
A company purchased machinery on December 31,2017 for Rs.60,000. Installation charges were Rs.25,000 and carriage was Rs.15,000.Depreciation provided @10% p.a. under Straight Line Method. The total Depreciation till March 31, 2019 is Rs. (a) .
Depletion is done in case of (a) .
Depreciation is a process of (a) .
Reduction in the book value of an asset over a period of time is called (a) .
Which of the following should be charged as an expense in the profit and loss account of a manufacturing firm ?
Office rent.
Work in progress.
Direct material costs.
Carriage charged on raw materials purchased.
Which of the following is calculated in a manufacturing account ?
The total production costs paid during an accounting period.
The total cost of goods produced during an accounting period.
The production cost of goods completed during an accounting period.
The gross profit on goods sold during an accounting period.
In the accounts of a manufacturing firm, 'production cost' equals . . .
the cost of direct materials acquired.
the sum of direct material costs and direct wages.
the sum of direct expenses, direct material costs, direct wages and production overheads.
the sum of direct expenses, direct material costs, direct wages, production overheads and administration expenses.
'Prime cost' does not include . . .
direct labour costs.
factory overhead expenses.
the cost of raw materials consumed.
direct expenses.
In the accounts of a manufacturing firm, the cost of direct labour . . .
should be included as part of the prime cost.
should be included in factory overheads.
should be included in the Profit and Loss Account.
should be divided between the prime cost and the cost of factory overheads.
In the accounts of a manufacturing firm, depreciation of factory plant and equipment should be included under the heading of . . .
direct expenses.
cost of raw materials consumed.
administrative expenses.
factory overheads.
In the accounts of a manufacturing firm, the cost of raw materials used during an accounting period should be included under the heading . . .
factory overhead expenses.
administrative expenses.
prime cost.
selling and distribution expenses.
Which of the following elements of a manufacturing account matches the definition below:
The raw materials actually used to manufacture the product (e.g. cloth used to produce shirts, flour used to produce bread)
Direct materials
Direct wages
Indirect materials
Direct expenses
Which of the following elements of a manufacturing account matches the definition below:
The wages of those workers actually engaged in the manufacturing process (e.g. wages of a sewing machine operator)
Direct materials
Direct wages
Indirect wages
Profit on manufacture
Which of the following elements of a manufacturing account matches the definition below:
Expenses which can be traced directly to the units manufactured. This can include royalties and hire of specialist equipment.
Direct wages
Direct materials
Direct expenses
Indirect materials
Which of the following elements of a manufacturing account matches the definition below:
Fees that must be paid to other persons for the right to produce their products or to use their processes.
Direct expenses
Royalties
Hire of specialist equipment
Prime cost
How is Prime Cost calculated on a manufacturing account?
Prime Cost = Direct Materials + Direct Wages + Direct Expenses
Prime Cost = Direct Materials - Direct Wages - Direct Expenses
Prime Cost = Direct Materials x Direct Wages
Prime Cost = Direct Materials / Direct Expenses
What is the general rule for dealing with Work-in-Progress on a manufacturing account?
Add opening WIP and closing WIP
Subtract opening WIP and add closing WIP
Add opening WIP and subtract closing WIP
Subtract opening WIP and closing WIP
Manufacturing firms like to compare their cost of manufacture with the wholesale cost of their output. Why do they do this?
To see whether it has been more or less profitable to manufacture the products rather than purchase them
To report to managers on the quality of their products
To apportion costs to different areas of the business
To investigate how many units are required to breakeven
Final account includes
Trial balance
journal entries
trading account ,profit and loss account and balance sheet
ledger account
depreciation on plant and machinery will be recorded in
trading account debit side
balancesheet asset side
profit and loss account debit side
profit and loss account credit side
bad debts will be recorded in
trading account credit side
profit and loss account debit side
balancesheet liablity side
profit and loss account credit side
balancesheet is an account
true
false
not acceptable
its a statement
sale of finished goods will be recorded in
trading account debit side
profit and loss account debit side
profit and loss account credit side
trading account credit side
Gross profit is calculated in
balancesheet
profit and loss account
trading account
ledger
capital +___________________- drawings =net capital recorded in liablities
gross profit
net profit
dividend
purchases
closing stock is recorded in trading account and ___________________________
balancesheet liablity side
balancesheet asset side
profit and loss account
trading account debit side
Wages and salaries will be recorded in
profit and loss account
balancesheet
Trading account debit side
trading account credit side
discount allowed will be recorded in
trading account debit side
trading account credit side
profit and loss account debit side
profit and loss account credit side
rent received will be recorded in
profit and loss account debit side
profit and loss account credit side
trading account credit side
trading account debit side
return outward means
sales return
purchase return
actual sales
actual purchases
return inwards means
purchase return
sales return
proportionate sales
expected sales
carriage inward is recorded in
trading account credit side
trading account debit side
profit and loss account debit side
profit and loss account credit side
carriage outward is recorded in
trading account debit side
trading account credit side
profit and loss account debit side
profit and loss credit side
value of fixed assets will be recorded in
balancdesheet liablity
balancesheet assets
profit and loss account
trading account
The total amount of money received from debtors, in addition to being recorded in the bank account, should be . . .
credited to the sales account.
credited to the debtors control account.
debited to the debtors control account.
debited to the sales account.
In a sales ledger control account, bad debts written off should be shown as . . .
a debit.
a balance carried down.
a credit.
both a debit and a credit.
The balance on a firm's debtors control account at the end of a year should agree with . . .
the total of the firm's sales for that year.
the amount of money received from debtors during the year.
the total of debtors which are outstanding for more than one year.
the total of its list of debtors outstanding at the year-end.
The balance on a firm's creditors control account at the end of an accounting period should equal . . .
the total amount which the finn paid to its creditors during the period.
the firm's total purchases for the period.
the total of its list of creditors outstanding at the end of the period.
the cost of the firm's sales for the period.
Incomplete records are generally maintained by
A company
Government
Small sized sole trader business
Multinational enterprises
Statement of affairs is a
Statement of income and expenditure
Statement of assets and liabilities
Summary of cash transactions
Summary of credit transactions
Opening statement of affairs is usually prepared to find out the
Capital in the beginning of the year
Capital at the end of the year
Profit made during the year
Loss occurred during the year
The excess of assets over liabilities is
Loss
Cash
Capital
Profit
The amount of credit sales can be computed from
Total debtors account
Total creditors account
Bills receivable account
Bills payable account
The purpose of preparing a departmental profit and loss account for a firm is . . .
to show the relative financial performance of different sections of the firm.
to estimate the firm's.future cash requirements.
to ensure that all likely bad debts are provided for.
to ensure that discounts allowed by the firm do not exceed discounts received by it.
When preparing a departmental trading and profit and loss account, the best method of allocating expenses between departments is . . .
to allocate expenses to each department in proportion to the sales of that department.
to charge against each department those costs which are within its control.
to allocate expenses to each department in proportion to the purchases of that department.
None of the above.
One item of information available through a departmental accounting system is the
net income or net loss for each department.
administrative expenses for each department.
total operating expenses for each department.
gross profit from operations for each department.
Assets = _________ + Capital
Owners
Debit
Liabilities
Credits
Rohan want to withdraw Rs.50,000 from Bank. But in his account total balance is Rs. 30,000. To withdraw more account process is called _______
Bank overdraft
Loan
Cash withdrawal
Liabilities
How do you calculate Gross Profit?
Sales - COGS
Sales - NP
COGS - Expenses
COGS - NP
What a company owes to creditors:
Assets
Liabilitites
Equity
