MBA IT January 2019 Semester 1

Accounting for Managers (EDL 105)

Block 1: Nature of Accounting Information

Answer for video MCQ and Block 1

1.1 Financial Accounting Introduction

Q1) Balance sheet is a statement of:

A) Assets
B) Liability
C) Capital
D) All of the above (Answer)

Q2) Balance sheet are prepared

A) Daily
B) Weekly
C) Monthly
D) Annually (Answer)

1.2 Accounting Process

Q1) Three key activities of the accounting function are identifying transactions, recording transactions,
and communicating transactions. The proper order for these activities is considered to be which of the
following?

A) Communicating, recording, and identifying.

B) Recording, communicating, and identifying.
C) Identifying, communicating, and recording.
D) Identifying, recording, and communicating. (Answer)

Q2) which one of the following users of accounting information is considered to be an external user of
accounting information rather than an internal user of accounting information?

A) Sales staff
B) Company managers
C) Company customers (Answer)
D) Officers and directors

1.3 Basic Accounting Terms

Q1) Which of the following jobs check accounting in ledgers and financial statements?

A) Financial
B) Audit (Answer)
C) Management
 D) Budget Analysis

Q2) The process of accounting is needed to

I. take a holiday
II. assist in decision making
III. invest in startup of a business
IV. track money spent

A) I, II and III
B) I, II and IV
C) I, III and IV
D) II, III and IV (Answer)

1.4 Subsidiary Books of Accounts

Q1) The sales income (Credit and Cash) of a business during a given period is called

A) Transactions
B) Sales returns
C) Turnover (Answer)
D) Purchase returns

Q2) Any written evidence in support of a business transaction is called

A) Journal
B) Ledger
C) Ledger posting
D) Voucher (Answer)

1.5 Journal Entries Numerical

Q1) The following is (are) the type(s) of Journal

A) Purchase journal
B) Sales journal
C) Cash journal
D) All of the above (Answer)

Q2) The process of entering all transactions from journal to ledger is called

A) Posting (Answer)
B) Entry
C) Accounting
D) None of the above

1.7 Depreciation

Q1) The main object of providing depreciation is:

A) To calculate true profit. (Answer)

 B) To show true financial position.
C) To reduce tax
D) To provide funds of replacement.

Q2) Depreciation arises because of:

A) Fall in the market value of an asst

B) Physical wear and tear (Answer)
C) Fall in the value of money
D) None of them

1.8 Bank Reconciliation Statement

Q1) A cash deposit made by business appears on the bank statement as ______ balance.

A) Debit
B) Credit (Answer)
C) Expenses
D) Liability

Q2) Bank reconciliations statement is the comparisons of a bank statement (sent by bank) with the
______ (prepared by business)

A) Cash receipt journal

B) Cash payment journal
C) Cash book (Answer)
D) Financial Statements

1.9 Fixed Assets

Q1) Loss on sale of machinery will be

A) Credited to machinery A/c (Answer)

B) Debited on machinery A/c
C) None of them
D) Credited to profit and loss A/c

Q2) All personal, real and nominal accounts are opened in

A) single entry system

B) mercantile system
C) accrual system
D) double entry system (Answer)

1.10 Revenue & Expenses

Q1) Sales expenditure budget is prepared by estimating the expense(s) of

A) Advertisement
B) Market analysis
C) Salesman’s salary
 D) All of the above (Answer)

Q2) A machinery is purchased for Rs. 3,00,000 and Rs. 50,000 is spent on its installation. Rs. 5,000 is
spent on fuel. What will be the amount of capital expenditure?

A) Rs. 3,00,000
B) Rs. 3,50,000 (Answer)
C) Rs. 3,55,000
D) None of these

1.11 Financial Statement and their Nature

Q1) The long term assets that have no physical existence but are rights that have value is known as

A) Current assets
B) Fixed assets
C) Intangible assets (Answer)
D) Investments

Q2) Patents, Copyrights and Trademarks are

A) Current assets
B) Fixed assets
C) Intangible assets (Answer)
D) Investments

1.12 Manufacturing Part 1

Q1) Which of the following shows summary of a company’s financial position at a specific date?

A) Profit and Loss Account

B) Cash Flow Statement
C) Balance Sheet (Answer)
D) Income & Expenditure Account

Q2) Which of the following financial statement summarizes the profitability of an organization for a
particular period?

A) Balance Sheet
B) Trading and Profit & Loss account (Answer)
C) Cash Flow Statement
D) Statement of Retained Earnings

1.13 Manufacturing Part 2

Q1) Outstanding rent A/c is an example for:

A) Nominal account (Answer)

B) Personal account
C) Representative personal account
D) None of these
Q2) The giving aspect in a transaction is called as:

A) Debit aspect (Answer)

B) Credit aspect
C) Neither of the two
D) Both of them

1.14 Illustration- Trading and balance Sheet Numerical

Q1) Petty Cash may be used to pay

A) The expenses relating to postages and conveyance (Answer)

B) Salaries and wages to the final staff
C) For the purchase of furniture and fittings
D) None of these

Q2) Immediately after purchasing a new truck 20,000 is paid to have the name of the company and
other advertising material painted on the truck this Rs. 20,000 is a

A) Capital Expenditure
B) Deferred Revenue Expenditure
C) Revenue Expenditure (Answer)
D) None of these

1.15 Final Accounts – Illustration (case-1)

Q1) If sales revenues are Rs. 4,00,000; cost of goods sold is Rs. 3,10,000 and expenses are Rs. 60,000, the
gross profit is

A) Rs. 30,000.
B) Rs. 90,000. (Answer)
C) Rs. 3,40,000.
D) Rs. 4,00,000.

Q2) If sales is INR. 2,000 and the rate of gross profit on cost of goods sold is 25%, then the cost of goods
sold will be

A) 2,000.
B) 1,500.
C) 1,600. (Answer)
D) 1,000.

1.16 Final Accounts – Illustrations (case-2)

Q1) Balance sheet is statement of

A) Assets
B) Liability
C) Capital
D) All of the above (Answer)
Q2) Balance sheets are prepared

A) Daily
B) Weekly
C) Monthly
D) Annually (Answer)

1st Block Assessments

Due May 15 at 10:29 PM

Points 100

Question 10

Time Limit 180 Minutes

Instructions:

 This is an objective type section and all questions are compulsory.

 Please use the click buttons to submit your answers.
 The total time allotted for this section is 180 minutes (3 Hours). Once initiated, the
assignment needs to be completed within 3 Hours.
 The assignment will be auto submitted after the prescribed time.

Case Study

Journalise the following transactions, post them in the ledger and balance the accounts in the
books of Mr. Rajesh.

2011 ` Amount
Jan. 1 Started business with cash 2,00,000
Jan. 3 Purchased goods for cash 60,000
Jan. 5 Sold goods to Shyam 60,000
Jan. 6 Sold goods for cash 20,000
Jan. 9 Received cash from Shyam 40,000
Jan. 13 Goods purchased from Ram 40,000
Jan. 20 Cash paid to Ram 20,000
Jan. 25 Paid office rent 4,000
Jan. 31 Paid salaries to staff 20,000
Jan. 31 Returned goods by Shyam 10,000
Question 1
10/10 pts
How much amount has been posted into ledger Capital account on January1,2011?
A) 2,40,000
B) 1,50,000
C) 2,00,500
D) 2,00,000 (Answer)
Question 2
10/10 pts
How much amount has been brought down (b/d) in ledger Capital account on February1,2011?
A) 2,00.500
B) 3,00,000
C) 2,00,000 (Answer)
D) 1,75,000
Question 3
10/10 pts
How much cash has been brought down (b/d) in cash ledger on February 1, 2011?
A) 2,40,000
B) 1,56,000 (Answer)
C) 3,00,000
D) 1,75,000
Question 4
10/10 pts
What is the value of Credit purchase?
A) 60,000
B) 1,20,000
C) 40,000 (Answer)
D) 1,00,000
Question 5
10/10 pts
What is the value of Credit sales?
A) 60,000 (Answer)
B) 1,00,000
C) 20,000
 D) 80,000
Question 6
How much balance brought down (b/d) to the month of February in Shyam Ledger Account?
A) 23,000
B) 10,000 (Answer)
C) 20,000
D) 15,000
Question 7
10/10 pts
What is the debit (dr.) side total of journal entries for January month?
A) 4,74,000 (Answer)
B) 5,00,000
C) 4,50,000
D) 3,50,000
Question 8
Cash received during the month of January was.
A) 2,60,000 (Answer)
B) 2,50,000
C) 2,70,000
D) 3,00,000
Question 9
Cash outflow during the month of January was…
A) 1,56,000
B) 1,10,000
C) 2,00,000
D) 1,04,000 (Answer)
Question 10
Cash in Hand on January 31 was.
A) 1,60,000
B) 2,60,000
C) 1,56,000 (Answer)
D) 1,45,000
Quiz Score 100 out of 100