Financial Statements 1 Test 24

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Financial Statements 1 Test 24

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Weekly Quiz Competition

Question 1

1 / -0

The manufacturing account is prepared __________________.

To ascertain the profit or loss on the goods produced

To ascertain the cost of the manufactured goods

To show the sale proceeds from the goods produced during the year

Both (B) and (C)

Solution

Manufacturing account does not show the profit & loss. Manufacturing account accumulate the cost of manufacturing of material including raw material, labour and production overheads.

Below is the format of manufacturing account.

Manufacturing Account

Particulars	Amount	Particulars	Amount
To Op Stock of Raw Material		By Closing Stock of Raw Material
To Opening Stock of WIP		By Closing WIP
To Purchases of Raw Material		By Cost of goods transferred to Trading A/c
To Carriage Inwards
To Direct Labor
To Direct Expenses
To Factory Rent
To Fuel, Power
To Manufacturing overheads

Question 2
1 / -0

In ____________ approach assets which are to be used for long term in the business and are not meant to be sold are presented first and assets which are most liquid such as cash in hand, are presented at the bottom.

A
Alphabetical order

B
Permanence order

C
Liquidity order

D
None of the above
Question 3
1 / -0

Arrange the following assets as per liquidity order.
I. Debtors
II. Building
III. Cash & Bank
IV. Stock
Select the correct answer from the options given.

A
II, III, I, IV

B
III, I, IV, II

C
I, IV, III, II

D
I, IV, II, III
Question 4
1 / -0

Which of the following statement is true?

A
Balance sheet is prepared on the basis of current value

B
Balance sheet is prepared on historical cost basis is a limitation of balance sheet

C
Sometimes balance sheet is window dressed which misleads us. This is advantage of balance sheet

D
All of the above
Question 5
1 / -0

Another name for the balance sheet is?

A
Statement of Operations

B
Statement of Financial Position

C
Both (A) & (B)

D
None of the above

Solution

In financial accounting, a balance sheet (also known as statement of financial position or statement of financial condition) is a summary of the financial balances of an individual or organization, whether it be a sole proprietorship, a business partnership, a corporation, private limited company or other organization.
Therefore, B is the correct option.
Question 6
1 / -0

Arrange the following assets as per permanence order.
I. Cash & Bank
II. Building
III. Investment
IV. Stock
Select the correct answer from the options given.

A
II, III, I, IV

B
I, II, III, IV

C
I, IV, III, II

D
II, III, IV, I
Question 7
1 / -0

The arrangement of assets and liabilities in accordance with a particular order is known as ___________.

A
Tallying

B
Marking

C
Ruling

D
Marshalling

Solution

Marshalling of assets and liabilities refers to the process of arranging the items of a balance sheet (assets and liabilities) in a specific order. In other words, it is a process of arranging the various assets and liabilities appearing in a balance sheet as per a specific order. Hence, option D is correct.
Question 8
1 / -0

Which of the following business entity will not prepare Trading Account?

A
Banking companies

B
Insurance companies

C
Investment companies

D
All of the above

Solution

Trading accounting is prepared only by those organization where the purchase and sale of goods is done.
Below are the entities which are not involve in any trading business, hence no trading account is prepared.
Banking Companies- It carries the business of taking deposits and lending money.
Insurance Companies- It carries Insurance business and provide services.
Investment Companies- It involves in advisory services. No trading.
Question 9
1 / -0

In ____________, approach the assets are stated in balance sheet in the order in which they can be easily converted into cash and the liabilities in the order in which they have to be paid off.

A
Alphabetical order

B
Permanence order

C
Liquidity order

D
None of the above
Question 10
1 / -0

Arrange the following assets as per liquidity order.
I. Cash & Bank
II. Building
III. Investment
IV. Stock
Select the correct answer from the options given.

A
II, III, I, IV

B
I, II, III, IV

C
I, IV, III, II

D
I, IV, II, III

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Re-Attempt Weekly Quiz Competition

Financial Statements 1 Test 24

Result

Financial Statements 1 Test 24

Score

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Rank

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SHARING IS CARING

Question 1

To ascertain the profit or loss on the goods produced

To ascertain the cost of the manufactured goods

To show the sale proceeds from the goods produced during the year

Both (B) and (C)

Solution

Question 2

Alphabetical order

Permanence order

Liquidity order

None of the above

Question 3

II, III, I, IV

III, I, IV, II

I, IV, III, II

I, IV, II, III

Question 4

Balance sheet is prepared on the basis of current value

Balance sheet is prepared on historical cost basis is a limitation of balance sheet

Sometimes balance sheet is window dressed which misleads us. This is advantage of balance sheet

All of the above

Question 5

Statement of Operations

Statement of Financial Position

Both (A) & (B)

None of the above

Solution

Question 6

II, III, I, IV

I, II, III, IV

I, IV, III, II

II, III, IV, I

Question 7

Tallying

Marking

Ruling

Marshalling

Solution

Question 8

Banking companies

Insurance companies

Investment companies

All of the above

Solution

Question 9

Alphabetical order

Permanence order

Liquidity order

None of the above

Question 10

II, III, I, IV

I, II, III, IV

I, IV, III, II

I, IV, II, III

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