FINAL TERM EXAMINATION
Spring 2010
MGT101- Financial Accounting (Session - 3)
Time: 90 min
Marks: 69
Question No: 1 ( Marks: 1 ) - Please choose one
Vehicles which are used to supply finished products are called business ________.
► Tangible assets
► Intangible assets
► Capital
► Liabilities
Question No: 2 ( Marks: 1 ) - Please choose one
What would be the affect on the components of the accounting equation, if goods are purchased on cash?
► Increase in cash and decrease in equity
► Increase in cash and increase in goods
► Increase in goods and decrease in cash
► Increase in equipment and increase in equity
Question No: 3 ( Marks: 1 ) - Please choose one
In an account, if credit side <>
► Negative Balance
► Debit Balance
► Positive Balance
► Credit Balance
Question No: 4 ( Marks: 1 ) - Please choose one
Which of the following book(s) is(are) a part of General Ledger?
► Cash Book
► Purchase Return Book
► Purchase Book
► All of the given options
Question No: 5 ( Marks: 1 ) - Please choose one
Identify the business transaction for given entry below.
Vehicle Account XXX (Dr.)
Bank Account XXX (Cr.)
► Paid for vehicle through cheque
► Paid for vehicle through cash
► Purchased vehicle on credit
► None of the given options
Question No: 6 ( Marks: 1 ) - Please choose one
Which one of the following is NOT true about revenue expenditure?
► These are the running expenses of the business
► They improve the financial position of the business
► They reduce the profit of the concern
► They do not appear in the balance sheet
Question No: 7 ( Marks: 1 ) - Please choose one
Which of the following isNOT a characteristic of Joint Stock Company?
► Separate Legal Entity
► Limited Liability
► Easy Formation
► Common Seal
Question No: 8 ( Marks: 1 ) - Please choose one
Upon checking the Bank Statement against the Cash Book by Mr. A, It was discovered that an amount of Rs.120 for dividend from XYZ Co. had not been entered in the Cash Book. Which of the following entry should be recorded to rectify the mistake?
► Bank Account(Dr.) and Dividend Account (Cr.)
► XYZ Co. Account (Dr.) and Bank Account (Cr.)
► Dividend Account (Dr.) and Bank Account (Cr.)
► Bank Account (Dr.) and XYZ Co. Account (Cr.)
Question No: 9 ( Marks: 1 ) - Please choose one
Following information are extracted from books of Mr. XYZ
Particulars | Rs. |
Closing value of stock | 40,000 |
Bad Debts (Given in trial balance) | 500 |
Old provisions (Given in trial balance) | 800 |
Sundry Debtors (Given in trial balance) | 44,500 |
Provision for doubtful debts @ 5% | |
Which amount of new provision will be deducted from Sundry Debtors | ? |
► Rs. 2,225
► Rs. 2,525
► Rs. 1,925
► Rs. 3,025
Question No: 10 ( Marks: 1 ) - Please choose one
Which of the following is (are) benefit/s of subsidiary ledger accounts to business?
► It tells about customer attitude of payments
► It can be checked against the control account to pick up recording errors
► It tells about the complete history of transactions of business client
► All of the given options
Question No: 11 ( Marks: 1 ) - Please choose one
Short-term investments include all of the following EXCEPT:
► A stock investment in the General Electric Company intended to be sold within one year
► A shares investment in the Coca-Cola Company intended to be held for several years
► A bond receivable intended to be sold within one year
► Frequently traded securities
Question No: 12 ( Marks: 1 ) - Please choose one
Wages paid to laborers working in the manufacturing department is treated as an expense of:
► Administrative expenses
► Selling expenses
► Marketing expenses
► Cost of goods sold
Question No: 13 ( Marks: 1 ) - Please choose one
Which account is increased with a debit and decreased with a credit?
► Cash
► Accounts Payable
► Contributed Capital
► Retained Earnings
Question No: 14 ( Marks: 1 ) - Please choose one
Which of the following statements is NOT TRUE about the partnership form of business?
► A partnership is a business run by two or more persons
► A partnership business is easy to set up
► Each partner is liable under the law for the actions of other partners
► In the absence of agreement, partners will be paid salaries
Question No: 15 ( Marks: 1 ) - Please choose one
Authorized share capital is also known as:
► Registered capital
► Issued capital
► Paid up capital
► Called up capital
Question No: 16 ( Marks: 1 ) - Please choose one
Which of the following is the most important document of the company?
► Memorandum of Association
► Articles of Association
► Prospectus
► Annual Report
Question No: 17 ( Marks: 1 ) - Please choose one
| Rs. |
Share capital of Rs. 10 each | 1,000,000 |
Profit before tax | 150,000 |
Taxes | 10,000 |
Earning per share | = ? |
► Rs. 1.50 per share
► Rs. 1.40 per share
► Rs. 1.15 per share
► Rs. 1.25 per share
Question No: 18 ( Marks: 1 ) - Please choose one
Mr.” A” sold goods for Rs. 300,000 to Mr. “B”, Rs. 300,000 will be treated as _____________ for business of Mr. "A".
► Revenue
► Net profit
► Gross profit
► Operating profit
Question No: 19 ( Marks: 1 ) - Please choose one
Mr. B provided the following information at the end of the month:
Particulars | Rs. |
Cash | 100 |
Accounts Receivable | 500 |
Accounts Payable | 200 |
Bank Loans | 1,000 |
Based on the information provided, what are the total assets of Mr. B?
► Rs.200
► Rs. 600
► Rs. 800
► Rs. 1,700
Question No: 20 ( Marks: 1 ) - Please choose one
In balance sheet fixed assets are shown at:
► Residual value
► Market value
► Fair value
► Written down value (WDV)
Question No: 21 ( Marks: 1 ) - Please choose one
To settle the balances of cash book and pass book ___________ is prepared.
► Balance sheet
► Profit and loss account
► Bank reconciliation statement
► Cash flow statement
Question No: 22 ( Marks: 1 ) - Please choose one
Stock account is credited and creditors account is debited, which of the following is reflecting the statement?
► Discount received
► Goods returned
► Purchase of goods on credit
► Payment of goods
