Financial Statements 1 Test 36

Result

Financial Statements 1 Test 36

Score
-
out of -
Rank
-
out of -

TIME Taken - -

SHARING IS CARING

If our Website helped you a little, then kindly spread our voice using Social Networks. Spread our word to your readers, friends, teachers, students & all those close ones who deserve to know what you know now.

Weekly Quiz Competition

Question 1
1 / -0

At the end of the year $$2008-09$$, the ledger of a firm shows following balances prepare their balance sheet.
Capital Rs. $$2,00,000$$
Net Profit for the year $$2008-09$$ Rs. $$1,50,000$$
Provision for Taxes Rs. $$75,000$$
Liabilities Rs. $$1,00,000$$
Advance Tax Paid Rs. $$60,000$$
Sundry Assets Rs. $$4,65,000$$
The total of the balance sheet would be.

A
Rs. $$4,65,000$$

B
Rs. $$5,25,000$$

C
Rs. $$5,65,000$$

D
Rs. $$5,10,000$$

Solution

Total liabilities = Capital + Net profit + Provision for taxes + Liabilities
   = 2,00,000 + 1,50,000 + 75,000 + 1,00,000
   = RS-5,25,000.
Total assets = Advance tax paid + sundry assets
   = 60,000 + 4,65,000
   = RS-5,25,000.
Total balance sheet = RS-5,25,000.
Question 2
1 / -0

On 1st October, 2011, a municipal tax of Rs. 1,000 may be paid for one year. If accounts are made up-to 31st March, 2012, taxes for six months (from 1st April, 2012 to 30th September, 2012), Rs. 500 will be treated as prepaid.
What is the journal entry to record the effect of above transaction ?

A
Municipal Taxes A/c...........Dr 500

To Profit and Loss A/c 500

B
Municipal Taxes A/c...........Dr 500

To Trading A/c 500

C
Municipal Taxes A/c...........Dr 500

To Prepaid Municipal taxes A/c 500

D
Prepaid Municipal Taxes A/c...........Dr 500

To Municipal Taxes A/c 500

Solution

Prepaid amount is an asset for the firm because that will be proven as a benefit in future. Since prepaid expenses are just like any normal expense, nominal account rule will be applied to it. Debit all the expenses and credit all incomes is the nominal account rule
Thus journal entry for prepaid municipal tax iss
$$Prepaid\quad Municipal\quad tax\quad a/c\quad Dr\quad Rs500\\ \quad To\quad Municipal\quad tax\quad a/c\quad Rs500$$
Question 3
1 / -0

Carriage Inwards is shown in the statement of profit and loss under ___________ .

A
cost of materials consumed

B
other expenses

C
employees benefit expenses

D
any of the above

Solution

Carriage is the expense that is incurred when the goods are transported. Carriage inwards are the costs that are incurred by the buyer at the time of purchase of goods, These are the direct expenses related to procuring of goods and hence would be included in the cost of material consumed or say in the cost of the inventory.
Question 4
1 / -0

The primary objective of the trading account is to show the __________.

A
overall trading profit or loss for the period concerned

B
net trading profit or loss for the period concerned

C
profit or loss on the turnover of the goods sold in the period

D
difference between income earned and expenditure incurred in the period

Solution

The primary objective of the trading account is to show the overall trading profit and loss for the period concerned. Trading account is concerned with the profit earned on sale or purchase of goods and services.
Question 5
1 / -0

Trading account is a _________ account.

A
personal

B
real

C
nominal

D
none of these

Solution

Trading account is prepared by a firm to record all it's income and expenses to find out the profit or loss attained during the year.
Nominal accounts are the ones which records all incomes and expenses to find out net profit or loss. Thus, trading account is a type of nominal account because it matches all the conditions of any nominal account.
Question 6
1 / -0

All accounts related to goods and direct expenses are recorded in ___________ account.

A
Trading

B
Profit and loss

C
Cash

D
Capital

Solution

Trading Account is an account which is prepared to record all the items of purchases and sales or say direct expenses related to purchase and sales. It basically shows the direct business profit.
Question 7
1 / -0

What is the journal entry for recording Outstanding wages ?

A
Wages A/c Debit

To Profit & Loss A/c

B
Wages A/c Debit

To Trading A/c

C
Wages A/c Debit

To Wages Outstanding A/c

D
None of the above

Solution

Outstanding wages are a liability for the company and hence, wages outstanding accounts is to be credited and wages is an expense to the company and has to be debited. Basically the entry for outstanding wages will be:-
Wages A/c. debit
To wages outstanding A/c.
Question 8
1 / -0

All items of revenue concerning current year - whether received in cash or not - and all items of expenses - whether paid in cash or not - are considered in which account ?

A
Trading Account

B
Profit and Loss Account

C
Both Trading and Profit & Loss Account

D
None of the above

Solution

All items of revenue concerning current year - whether received in cash or not - and all items of expenses - whether paid in cash or not - are considered in Profit and Loss Account. Profit and loss account is prepared to know the net profit earned or net loss incurred during the year. To know the actual profit or loss, all the revenue and expenses are recorded in this account.
Question 9
1 / -0

Control of management of the company mainly vests in hands of __________ .

A
Equity shareholders

B
Preference shareholders

C
Debenture-holders

D
All of these

Solution

A corporation generally has three parties sharing power and control: directors, officers, and shareholders. Directors are the managers of the corporation, and officers control the day-to-day decisions and work more closely with the employees.
Control of management of the company mainly vests in hands of equity shareholders.
Question 10
1 / -0

A Profit is earned if _________.

A
assets exceeds Expenditure

B
income exceeds Expenditure

C
cash Inflow exceeds Cash Outflow

D
income exceeds Liabilities

Solution

A profit and loss account will include your credits (which include turnover and other income) and deduct your debits (which includes allowances, cost of sales and overheads). These are used to find your bottom line figure either your net profit or your net loss.

User

Question Analysis

Correct -
Wrong -
Skipped -

My Perfomance

Score
-
out of -
Rank
-
out of -

Re-Attempt Weekly Quiz Competition

Capital	Rs. $$2,00,000$$
Net Profit for the year $$2008-09$$	Rs. $$1,50,000$$
Provision for Taxes	Rs. $$75,000$$
Liabilities	Rs. $$1,00,000$$
Advance Tax Paid	Rs. $$60,000$$
Sundry Assets	Rs. $$4,65,000$$

Financial Statements 1 Test 36

Result

Financial Statements 1 Test 36

Score

-

Rank

-

SHARING IS CARING

Question 1

Rs. $$4,65,000$$

Rs. $$5,25,000$$

Rs. $$5,65,000$$

Rs. $$5,10,000$$

Solution

Question 2

Municipal Taxes A/c...........Dr 500 To Profit and Loss A/c 500

Municipal Taxes A/c...........Dr 500 To Trading A/c 500

Municipal Taxes A/c...........Dr 500 To Prepaid Municipal taxes A/c 500

Prepaid Municipal Taxes A/c...........Dr 500 To Municipal Taxes A/c 500

Solution

Question 3

cost of materials consumed

other expenses

employees benefit expenses

any of the above

Solution

Question 4

overall trading profit or loss for the period concerned

net trading profit or loss for the period concerned

profit or loss on the turnover of the goods sold in the period

difference between income earned and expenditure incurred in the period

Solution

Question 5

personal

real

nominal

none of these

Solution

Question 6

Trading

Profit and loss

Cash

Capital

Solution

Question 7

Wages A/c Debit To Profit & Loss A/c

Wages A/c Debit To Trading A/c

Wages A/c Debit To Wages Outstanding A/c

None of the above

Solution

Question 8

Trading Account

Profit and Loss Account

Both Trading and Profit & Loss Account

None of the above

Solution

Question 9

Equity shareholders

Preference shareholders

Debenture-holders

All of these

Solution

Question 10

assets exceeds Expenditure

income exceeds Expenditure

cash Inflow exceeds Cash Outflow

income exceeds Liabilities

Solution

User

Question Analysis

My Perfomance

Score

-

Rank

-

Results Announcement on: coming Monday

Stay Tuned: We’ll update you on your result via email or SMS.

Municipal Taxes A/c...........Dr 500

To Profit and Loss A/c 500

Municipal Taxes A/c...........Dr 500

To Trading A/c 500

Municipal Taxes A/c...........Dr 500

To Prepaid Municipal taxes A/c 500

Prepaid Municipal Taxes A/c...........Dr 500

To Municipal Taxes A/c 500

Wages A/c Debit

To Profit & Loss A/c

Wages A/c Debit

To Trading A/c

Wages A/c Debit

To Wages Outstanding A/c