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Management Sciences 5307 MCQs [All-Courses]

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Management Sciences focuses on the planning, organizing, leading, and controlling of resources to achieve organizational goals.This subject is highly important for competitive exams, academic study, and professional careers in the business and public sectors.

All Topics  5307

Gross Profit is equal to_________?
A Sales – Cost of goods sold
B Sales – Closing Stock + Purchases
C Opening Stock + Purchases – Closing Stock
D None of the above
Correct Answer: Sales – Cost of goods sold
Which of the following relationships is/are false?
A Net Profit = Gross Profit – Administration and Other expenses
B Net Profit = Gross Profit + Administration expenses and Other expenses
C Opening Stock + Purchases – Closing Stock = Cost of Sales
D Both B. and C. above
Correct Answer: Both B. and C. above
Prepaid expenses are valued on the Balance Sheet at
A Replacement cost
B Current cost
C Cost to acquire less accumulated amortization
D Cost less expired portion
Correct Answer: Cost less expired portion
Goods in stock worth 800 are destroyed by fire and the Insurance Co. is accepted the claim for 600. Adjustment would involve
A Debit of 800 to Trading Account and credit of 600 and 200 to insurance company and
B Deduct the 800 from closing stock in the Trading Account
C Credit insurance company for 600
D Debit of 600 and 200 to insurance company and Profit and Loss Account respectively and
Correct Answer: Debit of 600 and 200 to insurance company and Profit and Loss Account respectively and
Sundry debtors as per Trial Balance is 43,000 which includes 2,200 due from ‗H in respect of goods sent to him on approval basis, the cost price of which is 1,800. Rectification would involve:
A Adding 2,200 to closing stock
B Deducting 1,800 from closing stock and deducting 2,200 each from debtors and sales
C Adding 1,800 to closing stock and deducting 2,200 each from debtors and sales
D Deducting 1,800 from debtors
Correct Answer: Adding 1,800 to closing stock and deducting 2,200 each from debtors and sales
Which of the following entries is correct in respect of reserve for discounts on accounts payable?
A Debit P&L A/c and Credit Reserve for Discount on Accounts Payable A/c
B Debit Accounts Payable A/c and Credit P&L A/c
C Debit Reserve for Discount on Accounts Payable A/c and Credit P&L A/c
D Debit Reserve for Discount on Accounts Payable A/c and credit Accounts Payable A/c
Correct Answer: Debit Reserve for Discount on Accounts Payable A/c and Credit P&L A/c
The adjustment to be made for prepaid expenses is____________?
A Add prepaid expenses to respective expenses and show it as an asset
B Deduct prepaid expenses from respective expenses and show it as an asset
C Add prepaid expenses to respective expenses and show it as a liability
D Deduct prepaid expenses from respective expenses and show it as a liability
Correct Answer: Deduct prepaid expenses from respective expenses and show it as an asset
Bad debts recovered is:
A Credited to P&L A/c
B Debited to P&L A/c
C Reduced from debtors in Balance Sheet
D Added to debtors in Balance Sheet
Correct Answer: Credited to P&L A/c
A club paid subscription fees of `1,400. Out of which ` 200 is prepaid. In such case
A P&L A/C is debited with 1,400
B P&L A/C is debited with 1,200
C 200 is shown as current asset
D Both B. and C. above
Correct Answer: Both B. and C. above
Depreciation appearing in the Trial Balance should be?
A Debited to P&L A/c
B Shown as liability in Balance Sheet
C Reduced from related asset in Balance Sheet
D Both A. and C. above
Correct Answer: Debited to P&L A/c
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