Sikkim-Manipal University of Health Medical and Technological Sciences (SMUHMTS) 2006 M.B.A Financial Management FINANCE

c. Compensating d. None of above

34. The sale accounting is under cast by Rs 15,000. This could be rectify as:

Sales Account


By rectification 15000

a. actual b. False

35. An artificial Account used to tally the trail Balance is known as:
a. Trading Account b. Trail Balance
c. Rectification d. Suspense Account

36. Complete the subsequent phrases complete correctly Rs 500 paid as salary to Ramnath should be debited to
a. Salary Account b. Ramnath Account
c. Sales Account d. None

37. Good worth Rs 300 taken y the proprietor his personal use should be debited to:
a. Drawing Account b. Purchase
c. Sales Account d. Cash Account

38. actual or False:
a. Balances of ledger accounts are posted to trail Balance. (T)
b. A Trail balance can agree in spite rectification of all the errors. (T)
c. Suspense accounts is closed by after rectification of all the errors. (T)
d. Errors committed due to lack of knowledge are called errors of Omission. (F)
e. When a transaction is omitted from the books of account it is called as an errors of posting.(

39. _________ Assets include cash, assets that are likely to converted into cash with 1 year.
a. Current b. Intangible
c. Quick d. None of above

40. ________ Assets are those, which could be converted into cash very quickly.
a. Current b. Intangible
c. Quick d. None of above

41. ___________ is arrived at deducting the direct cost of goods sold from sale proceeds.
a. Net profit b. Gross profit
c. Coas d. Net Sales

42. Gross profit = Cogs - Sales.
a. actual b. False

43. The profit & loss Account and Balance Sheet are together Called ________ .
a. Final Account b. Financial outcome

44. The profit & Loss Account is prepared to show Financial outcomes of a business during an accounting period.
a. actual b. False

45. In the profit & loss Account, the ________ reflects all expenses and losses, while the ______ indicates all income and gains.
a. Debit side, Credit side
b. Credit side, Debit side
c. None

Earning:   Approval pending.