FINAL TERM EXAMINATION
Spring 2010
MGT101- Financial Accounting (Session - 3)
Time: 90 min
Marks: 69
Question No: 23 ( Marks: 1 ) - Please choose one
Suppose a firm has 200 debtors, and each of them owes exactly Rs. 150 at the start of June. What is the total amount owed by all debtors?
► Rs. 2,000
► Rs. 3,000
► Rs. 30,000
► Rs. 150,000
Question No: 24 ( Marks: 1 ) - Please choose one
Which of the following justifies when profit is earned?
► Assets exceed Expenditure
► Income exceeds Expenditure
► Cash Inflow exceeds Cash Outflow
► Income exceeds Liabilities
Question No: 25 ( Marks: 1 ) - Please choose one
In a partnership of Mr. X and Mr. Y, the share of profit of Mr. X is Rs.3,840 and the share of profit of Mr. Y is Rs. 5,760. What will be the ratio of their share?
► 1:2
► 2:3
► 3:2
► 2:1
Question No: 26 ( Marks: 1 ) - Please choose one
Puget Sound Co. sold marketable securities Costing Rs.80,000 for Rs.92,000 cash. In the company’s income statement and statement of cash flows, respectively, this will appear as:
► A Rs.12,000 gain and a Rs.92,000 cash receipt
► A Rs.92,000 gain and a Rs.8,000 cash receipt
► A Rs.12,000 gain and a Rs.80,000 cash receipt
► A Rs.92,000 sale and a Rs.92,000 cash receipt
Question No: 27 ( Marks: 1 ) - Please choose one
Mr. A & B entered into a partnership invested Rs.50,000 and Rs.65,000 with an equal share in profit or loss. Markup on drawings of Mr. A is Rs.1,500 and of Mr. B is Rs.1,800. The net income for the year is Rs.85,000. What will be the profit share of Mr. B?
► Rs.42,350
► Rs.44,150
► Rs.41,600
► Rs.40,850
Question No: 28 ( Marks: 1 ) - Please choose one
Mr. A & B entered into a partnership invested Rs.50,000 and Rs.65,000 with an equal share in profit or loss. Markup on capital of Mr. A is Rs.2,000 and markup on drawings of Mr. B is Rs.3,000. The net income for the year is Rs.85,000. What will be the profit share of Mr. B?
► Rs.40,000
► Rs.43,000
► Rs.130,000
► Rs.133,000
Question No: 29 ( Marks: 1 ) - Please choose one
Which of the following capital is offered to the general public?
► Issued capital
► Subscribed capital
► Authorized capital
► Reserve capital
Question No: 30 ( Marks: 1 ) - Please choose one
Which of the following financial statement is helpful for the investors and creditors to assess the cash and non cash aspects of operating, investing and financing transactions on an entity’s financial position?
► Balance Sheet
► Income Statement
► Statement of cash flows
► Statement of changes in equity
Question No: 31 ( Marks: 1 ) - Please choose one
Which of the following is not a measure of short-term liquidity?
► Current ratio
► Quick ratio
► Acid-test ratio
► Debt ratio
Question No: 32 ( Marks: 1 ) - Please choose one
Which of the following refers to the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all?
► Sole - proprietorship
► Partnership
► Company
► Trust
Question No: 33 ( Marks: 1 ) - Please choose one
Which of the following is a direct source of revenue?
► Sales proceeds
► Interest received
► Dividend received
► Discount received
Question No: 34 ( Marks: 1 ) - Please choose one
Which of the following isNOT an item of a Balance Sheet?
► Accounts Receivable
► Accounts Payable
► Sales Revenue
► Marketable Securities
Question No: 35 ( Marks: 1 ) - Please choose one
A fixed asset cost Rs. 8,000; it is sold for Rs. 4,800. At the date of its disposal, its net book value is Rs. 3,000. What is the profit or loss on disposal?
► Profit Rs. 3,200
► Loss Rs. 3,200
► Loss Rs. 1,800
► Profit Rs. 1,800
Question No: 36 ( Marks: 1 ) - Please choose one
Mr. B’s cash book shows a credit balance of Rs.68,000. He issued a cheque of Rs.7,000 but not yet presented by the bank. What will be the balance of bank statement?
► Rs. 61,000
► Rs. 75,000
► Rs. 68,000
► Rs. 7,000
Question No: 37 ( Marks: 1 ) - Please choose one
If (Amount of new provision + Amount of bad debts) <>
► Debit side of Profit & Loss account
► Credit side of Profit & Loss account
► Asset side of Balance Sheet
► Liability side of Balance Sheet
Question No: 38 ( Marks: 1 ) - Please choose one
Which of the following would NOT be included in the heads of Current Assets?
► Stock
► General Stores
► Spare parts
► Bank over draft
Question No: 39 ( Marks: 1 ) - Please choose one
Depreciation expense is charged to which of the following head?
► Administrative expenses
► Selling expenses
► Cost of sales
► It depends on the nature of expense
Question No: 40 ( Marks: 1 ) - Please choose one
Prepaid insurance will become an expense when the balance of prepaid amount is _________.
► Expired
► Collected
► Paid
► Earned
Question No: 41 ( Marks: 1 ) - Please choose one
XYZ Company has paid up capital of 20,000 shares of Rs. 100 each. The company offers to existing shareholders the right to buy 3 shares of Rs. 100 each at Rs. 125 for every 5 shares held. What would be the number of right shares?
► 120 right shares
► 12,000 right shares
► 15,000 right shares
► 25,000 right shares
Question No: 42 ( Marks: 1 ) - Please choose one
Which of the following is (are) type(s) of Public Limited Companies?
► Listed company
► Non listed company
► Private limited company
► Both listed company and non listed company
Question No: 43 ( Marks: 1 ) - Please choose one
Which of the following is old name of Cash Flow Statement?
► Sources and Application of Funds
► Sources and Application of Liabilities
► Sources and Application of Activities
► Sources and Application of Income
Question No: 44 ( Marks: 1 ) - Please choose one
Which of the following is the new name of Sources and Application of Funds?
► Income Statement
► Cash Flow Statement
► Statement of Changes in Owners Equity
► Balance Sheet
Question No: 45 ( Marks: 1 ) - Please choose one
Which of the following is an example of cash outflow for a company?
► Cash collected from customers
► Cash paid for merchandise inventory
► Writing off an uncollectible accounts receivable
► Reclassifying accounts payable to notes payable
Question No: 46 ( Marks: 1 ) - Please choose one
Which of the following is an example of Cash flow from operating activities?
► Cash payment to acquired fixed assets
► Issuing stock
► Cash collection as a result of machinery sold
► Cash payment to suppliers for goods and services
Question No: 47 ( Marks: 1 ) - Please choose one
If issuance of shares against cash is Rs. 2,000 and payment of dividend is Rs. 9,000 then which of the following is correct?
► Inflow of cash Rs. 11,000
► Outflow of cash Rs. 11,000
► Inflow of cash Rs. 7,000
► Outflow of cash Rs. 7,000
Question No: 48 ( Marks: 1 ) - Please choose one
In statement of cash flows, which of the following would not be considered as an investing activity?
► Sales of fixed assets
► Purchase of long term securities
► Purchase of fixed assets
► Payments of dividends
Question No: 49 ( Marks: 3 )
Mr. A, B & C entered into a partnership. At the beginning of the year their capital balances were Rs. 180,000, Rs. 140,000 and Rs. 80,000 respectively. Profit or loss is to be divided as:
Ø Mr. A: one-half
Ø Mr. B: one-third
Ø Mr. C: one-sixth
Required:
If profit is Rs. 390,000, calculate the share of profit for all the partners.
Question No: 50 ( Marks: 3 )
If:
· Retain earning at the beginning Rs. 1,000
· Dividend paid 500
· Retain earning at the end 2,500
Then:
You are required to prepare statement of Retain earnings to find the amount of Net income
Question No: 51 ( Marks: 5 )
The face value of the share of ABC public limited company is Rs.10. the share is sold at Rs.15. total shares traded in the market are 50,000. What will be the amount of share premium received and discuss for what it will be utilized?
Question No: 52 ( Marks: 5 )
Given the following data:
Purchases Rs.54,533, Returns outwards Rs.2,341, Returns inwards Rs.1,766, Carriage outwards Rs.543, Carriage inwards Rs.4,324, Opening stock Rs.17,600, and closing stock Rs.14,342.
Determine the value of the cost of goods sold.
Question No: 53 ( Marks: 5 )
| Rs. |
Raw Material - Opening Stock | 10,000 |
Raw Material – Purchases | 2,000 |
Raw Material - Closing Stock | 3,000 |
Packing Material - Opening Stock | 4,000 |
Packing Material – Purchases | 5,000 |
Packing Material - Closing Stock | 6,000 |
Based on the above information you are required to calculate the following:
· Cost of Raw Material Consumed
· Cost of Packing Material Consumed
