VU Midterm Past Papers
197 solved midterm past paper MCQs for MGT101 (Financial Accounting) at Virtual University, each with the correct answer marked. Use them to learn the VU question style and test your recall. An independent study tool — not affiliated with VU.
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Q1. Which of the following is used to check the arithmetic accuracy of bookkeeping?
Q2. Settlement discount is recorded in the books of:
Q3. Which of the following NOT to be adjusted in cash book?
Q4. The favorable balance as per pass book is
Q5. is a list of the names of accounts that business accountant identifies from the journal and prepares for recording transactions in its general ledger.
Q6. In the post reference column of a ledger account, is written from which this entry is posted
Q7. Consider the following data: Particulars Rs. Assets 75,500 Owner's equity? Liabilities 40,200
Q8. ________ is the art of recording, classifying and summarizing the transactions and events of a business and interpreting the results thereof.
Q9. In the cost of goods sold statement, the sum of labor cost and the factory over head is known as:
Q10. Any expense that gives benefit for a period of less than twelve months is called ______.
Q11. Which of the following account summarizes the profitability of business for a specific accounting period?
Q12. Debit signifies:
Q13. If cost of sales is Rs. 60,000, income from sales Rs. 95,000 and direct expenses Rs. 10,000. Calculate Net profit.
Q14. Which of the following entry will be recorded, when land is purchased for cash?
Q15. Which of the following account is normally NOT exists in the balance sheet of the manufacturing concern?
Q16. ABC & Co. received dividend on shares. Which of the following accounts would be affected from this transaction? I) Assets II) Liabilities III) Expenses IV) Revenues
Q17. Which of the following method of inventory valuation has a lower cost of goods sold value and the profitability of the organization becomes higher?
Q18. Which of the following is the main objective of charging depreciation?
Q19. Which of the following account balance is shown on credit side of Trial Balance? (It is assumed that all account balances are shown on normal balance)
Q20. An accounting system in which there is a partial or no record of some of the transactions is called as:
Q21. Machinery purchased on Credit for Rs 15000 will have an effect on which of the following accounts?
Q22. 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:
Q23. A sum of Rs. 8,000 paid as wages to repair the office furniture should be debited to:
Q24. Salaries paid to employees Rs. 15,000. The effect of this transaction would be:
Q25. Fixed assets are also called:
Q26. Which of the following is NOT considered a part of financial statements?
Q27. Any Written evidence in support of a business transaction is called as _________:
Q28. When a customer purchases goods from business and makes a promise to pay the amount at certain future time period, he will be called as:
Q29. At the end of the accounting period, the balance which is showing on the debit side of ledger account is called as:
Q30. Unfinished goods are called:
Q31. What would be the value of Total Factory Cost, if cost of raw materials, direct labor costs, and manufacturing overhead costs are Rs.80,000, Rs.50,000, and Rs.60,000 respectively?
Q32. In cost of goods sold statement, the ‘cost of material consumed’ is equal to:
Q33. Which of the following particular/s is/are included in receipt voucher?
Q34. Which of the following is NOT a content of Cost of goods sold?
Q35. The first step in the posting process is:
Q36. Working capital Rs. 20,000, Current liabilities Rs. 30,000 and fixed assets Rs. 100,000; calculate current assets?
Q37. The process of transferring journal entry information to the ledger is called:
Q38. The investment of Rs. 10,000 made by the owner in business will have an effect on which of the following accounts?
Q39. The journal entry to record purchase of furniture on credit would include a:
Q40. Cost of goods manufactured - opening work in process + ending work in process =?
Q41. If cost of sales is Rs. 90,000, income from sales Rs. 200,000 and operating expenses Rs. 100,000. What will be net result?
Q42. Consider the following data: Particulars Rs. Assets 105,000 Owner's equity 70,000 Liabilities?
Q43. Consider the following data: Particulars Rs. Assets 99,500 Owner's equity 50,500 Liabilities ?
Q44. In Book keeping, _______ is the first document to record an entry:
Q45. Which of the following businesses have unlimited liability? I) Sole Proprietorship II) Partnership III) Joint Stock Company
Q46. The proper classification of Cost of Goods Sold account is:
Q47. Following information is available relating to a manufacturing concern: Cost of Goods Sold Rs. 245,000 Opening Stock Rs. 15,000 Closing Stock Rs. 25,000 What will be the amount of Purchases?
Q48. Which of the following is NOT correct?
Q49. If Salaries Rs. 12, 000, Rent Rs. 5,000, Gross profit Rs. 58,000 and Discount received Rs. 10, 000. What will be the amount of Net Profit?
Q50. Cost of goods sold + ending finished goods – opening finished goods=?
Q51. Which of the following voucher is used to record transactions that do not affect bank & cash?
Q52. When a business purchases goods from ABC & Co. and promises to pay the amount at certain future time period, we will call ABC & Co. as:
Q53. Net profit = Gross profit - _______
Q54. Outsider’s claim against the assets of the business is called:
Q55. Which of the following shows company’s negative working capital?
Q56. Which of the following is / are the particular/s of a cash book? (1) Date of transaction (2) Account title (3) Amount
Q57. If debit side of a ledger is greater than credit side, the balance will be called as:
Q58. Depreciation arises because of:
Q59. Which of the following is NOT a characteristic of Joint Stock Company?
Q60. __________ is NOT one of the legal forms of business?
Q61. When total liabilities are subtracted from total assets the remaining amount is known as:
Q62. Find out the missing value of an Accounting Equation with the help of given data: Bank Rs. 22,500 Other assets Rs. 1,000 Creditors Rs. 8, 385 Other liabilities Rs. 9,000 Owner’s equity ?
Q63. The proper classification of equipment account is:
Q64. Which of the following is the main cause of depreciation?
Q65. Cash book is a part of _______ .
Q66. What will be debited, if business sold goods for Rs.10, 000 on credit?
Q67. Which of the following is used to determine the cost of goods sold?
Q68. The maximum limit of persons in a private Ltd company is:
Q69. ________ is the excess of Sales over Cost of goods sold in an accounting period:
Q70. The expenses which are NOT paid out of Gross Profit is classified as:
Q71. The main purpose of _________ is to ascertain true result of the business operation during particular period of time.
Q72. Following information is available relating to a manufacturing concern: Cost of Goods Sold Rs. 245,000 Purchases Rs. 250,000 Freight Inward Rs. 5,000 Closing Stock Rs. 25,000 What will be the amount of Opening Stock?
Q73. A statement which is prepared at the end of financial year of a manufacturing concern showing a brief summary of the whole process is called as:
Q74. A book that keeps separate record for each account is known as:
Q75. Which one of the following cannot be classified as Revenue Income?
Q76. What is the nature of a revenue account?
Q77. What will be the effect on accounting equation if cash is received from a tenant as office rent?
Q78. _______ is NOT treated as liability of a company.
Q79. Cost of goods manufactured + opening finished goods – ending finished goods =?
Q80. Supervisor's salary and equipment repair cost are examples of:
Q81. Which of the following asset is NOT depreciated?
Q82. Which of the following is the first book to record a transaction?
Q83. The proper classification and normal balance of accounts receivables account is:
Q84. If Current Assets Rs. 100,000, Current Liability Rs. 50,000 and Fixed Assets Rs. 2,00,000. Calculate working capital.
Q85. Find out the missing value of an Accounting Equation with the help of given data: Owner’s equity Rs. 22,500 Total Liabilities Rs. 80,385 Cash Rs. 1,000 Bank Rs. 2,000 Debtors Rs. 500
Q86. Which of the following Organization converts raw material into finished goods?
Q87. In balance sheet fixed assets are shown at:
Q88. ___________= Gross profit < Operating Expenses
Q89. What does single entry accounting mean?
Q90. Which of the following formula is used to calculate the cost of goods sold?
Q91. Which of the following expenses are called financial expenses?
Q92. Which of the following is/are the example/s of Intangible Asset?
Q93. Depreciation is mainly a process of _____________.
Q94. What should be debited, if Sales made to Mahmood for cash?
Q95. Budget is a plan of income, expenses & other financial operations for:
Q96. All the statements are correct about Journal voucher EXCEPT:
Q97. Franchise rights, goodwill and patents are the examples of:
Q98. The Sales Returns Day Book would include:
Q99. Any expense that becomes a source of income generation for a long time period is called ______
Q100. If Total Assets of the business worth Rs. 200,000, Current Assets Rs. 100,000 and working capital of the business has the value of Rs. 25,000. What will be the amount of Current Liabilities of the business?
Q101. All of the followings are Tangible Fixed Assets Except:
Q102. Which one of the following is INCORRECT about closing Stock?
Q103. If cost of sales is Rs. 60,000, income from sales is Rs. 95,000 and operating expenses Rs. 25,000. Calculate net profit.
Q104. All of the following are Non-commercial (Non-Profit Oriented) organizations, EXCEPT:
Q105. Revenues, expenses and net profit are found on a:
Q106. What will be debited, if business purchased Vehicle on cash?
Q107. Assets are divided in which of the following categories in balance sheet.
Q108. Which of the following account balance/s is/are shown on credit side of Trial Balance? (It is assumed that all account balances are shown on normal balance)
Q109. If Gross profit Rs.16,500 and Cost of goods sold Rs.183,500, what will be the amount of Net Sales?
Q110. Goods returned by Mr. B amount to Rs. 4,000. The entry in the books will be:
Q111. An accounting system is used by a business to:
Q112. Which one of the following will result in increase in revenues?
Q113. Which of the following is the example of current liability?
Q114. 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?
Q115. What should be credited, if rent paid in cash?
Q116. The estimated value of an asset after the expiry of its useful life is called as:
Q117. Which of the following assets are shown at written down value in balance sheet?
Q118. Net Profit = Income - ___________
Q119. In an account if debit side > credit side, the balance is known as the:
Q120. Following information is extracted from Mr. A’s balance sheet: Cash Rs.100 Accounts Receivable 500 Accounts Payable 200 Bank Loans 1,000 Based on the information provided, what are Mr. A’s assets?
Showing the first 120 of 197 MCQs.