This post topic provides the latest solved mgt101 quiz 2 with an answer that helps in test and exam preparation and also it will be beneficial to improve your knowledge and learning skills.

MGT101 Quiz 2 Solution

1) Expenses paid but the benefit is not received till the end of the accounting period is treated in balance sheet as:

1. Liability
2. Asset
3. Drawing
4. Capital

2) When the company deposits the cash in its bank account, then what is the nature of the deposited amount.

1. It is the equity of the bank
2. It is the expense of the bank
3. It is the asset of the bank
4. It is the liability of the bank

3) Which of the following is considered as liability for the bank

1. Unfavorable balance as per cash book (bank column)
2. Debit balance as per bank statement
3. Overdrawn balance as per bank statement
4. Favorable balance as per cash book (bank column)

4) Income received in advance at the end of the period treated as:

1. Income
2. Drawings
3. Asset
4. Liability

5) Incase of creating the provision for discount on debts ___________ id debited

1. Discount allowed account
2. Provision account
3. Receivable account
4. Discount received account

6) Which of the following needs NOT to be adjusted in cash book>

1. Direct payment by a customer into the bank
2. Interest on bank deposit
3. Cheques deposited but not credited
4. Bank charges deducted by the bank

7) Bank Reconciliation Statement is:

1. memorandum statements
2. part of cash book
3. ledger accounts
4. part of journal

8) The favorable balance as per cash book (bank column) is:

1. Favorable balance as per bank statement
2. Credit balance as per cash book
3. Unfavorable balance as per bank statement
4. Debit balance as per bank statement

9) Which of the following is/are an adjusting item(s) that cause disagreement(s) between cash book and paao book

1. Cheques deposited but not yet credited
2. Bank changes not recorded in cash book
3. Cheques issued but yet presented
4. All of the given options

10) Advance payment at the end of the period is treated as:

1. Liability
2. Income
3. Assets
4. Drawings

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