Management Sciences MCQs
These Management Sciences MCQs are for public service commission exams and BBA, and MBA students to prepare for their examinations. All MCQs are prepared after having a look at past papers of public service commission examinations held from time to time. These Management Science questions are very important for all types of tests conducted by FPSC, NTS, KPPSC, PPSC, SPSC, BPSC, OTS, UTS, PTS, CTS, ATS, STS, ETEA, and other testing agencies of Pakistan.
Purchase journal is kept to record_____________?
A: All purchases of goods
B: All credit purchases of goods
C: All credit purchases
D: None of these
All credit purchases of goods
The beginnings inventory of the current year is overstated by 5,000 and closing inventory is overstated by 12,000. These errors will cause the net income for the current year by
A: 17,000 (overstated
B: 12,000 (understated
C: 7,000 (understated
D: 7,000 (overstate
The accountant of Leo Ltd. recorded a payment by cheque to a creditor for supply of materials as 1,340.56. The bank recorded the cheque at its correct amount of 3,140.56. The Company has not passed any rectification entries and the error is not detected through the bank reconciliation. The impact of this error is
A: The Trial Balance will not agree
B: The balance of creditors is understated
C: The purchases are understated
D: The favorable bank balance as per Pass Book is less than the Bank balance as per Cash book
The favorable bank balance as per Pass Book is less than the Bank balance as per Cash book
Which of the following errors affects the agreement of a Trial Balance?
A: Mistake in balancing an account
B: Omitting to record a transaction entirely in the subsidiary books
C: Recording of a wrong entry in the subsidiary books
D: Posting an entry on the correct side but in the wrong account
Mistake in balancing an account
Which of the following should not be treated as revenue expenditure?
A: Interest on loans and debentures
B: Annual fire insurance premiums on Plant and Equipment
C: Sales tax paid in connection with the purchase of office equipment
D: Small expenditures on long- lived assets, such as ` 20 for a paper weight.
Sales tax paid in connection with the purchase of office equipment
Capital expenditure is an expenditure which
A: Benefits the current accounting period
B: Will benefit the next accounting period
C: Results in the acquisition of a permanent asset
D: Results in the acquisition of a current asset
Results in the acquisition of a permanent asset
Which of the following statements is /are true?
A: Entering wrong amount in the subsidiary book affects the agreement of the Trial Balance
B: Undercasting or overcastting of a subsidiary book is an example or error of commission
C: Errors of principle do not affect the agreement of Trial Balance
D: Both
E: and
Both and above
Which of the following is true?
A: Error of casting affects personal accounts
B: Omission of a transaction from a subsidiary record affects only one account
C: Error of carry forward affects two accounts
D: Error of principle involves an incorrect allocation of expenditure or receipt between capital and revenue
Error of principle involves an incorrect allocation of expenditure or receipt between capital and revenue
Journal proper is meant for recording_____________?
A: Credit purchase of fixed assets
B: Return of goods
C: All such transactions for which no special journal has been kept by the business
D: None of these
All such transactions for which no special journal has been kept by the business
Closing stock in the Trial Balance implies that______________?
A: It is already adjusted in the opening stock
B: It is adjusted in the Purchase A/c
C: It is adjusted in the Cost of Sale A/c
D: It is adjusted in the Profit &Loss A/c
It is adjusted in the Purchase A/c