Final TERM EXAMINATION
Spring
2020
Rehan Ahmed Haani (vu student shakargarh campus)
MGT101-Financial Accounting
Question No: 1 ( Marks: 1 ) - Please choose one
Mr. “A” sold goods to Mr. “B” for Rs. 3,000 on October 8,
2008 and Mr. “B” paid at the same time. It will be case of ______________
sales.
► Cash
► Credit
► Accrual based
► None of the given options
Question No: 2 ( Marks: 1 ) - Please choose one
Word “Credit” is derived from ______ language.
► Latin
► English
► French
► Chinese
Question No: 3 ( Marks: 1 ) - Please choose one
In an account, if credit side < debit side then the
balance is known as:
► Negative Balance
► Debit Balance
► Positive Balance
► Credit Balance
Question No: 4 ( Marks: 1 ) - Please choose one
Which of the following financial statement summarizes the
profitability of an organization for a particular period?
► Balance Sheet
► Trading and Profit & Loss account
► Cash Flow Statement
► Statement of Retained Earnings
Question No: 5 ( Marks: 1 ) - Please choose one
Which of the following organizations do NOT prepare
Income & Expenditure account?
► Public limited companies
► Private limited companies
► Partnership firms
► All of the given options
Question No: 6 ( Marks: 1 ) - Please choose one
Which of the following account will be credited, If Mr. “A”
started business with cash
Rs. 2, 00,000?
► Capital account
► Cash account
► Mr. A’s account
► Business account
Question No: 7 ( Marks: 1 ) - Please choose one
If cost of sales is Rs. 95,000, sales are Rs. 200,000 and
operating expenses are Rs. 100,000. What will be the net result?
► Rs. 5,000 Loss
► Rs. 5, 000 Profit
► Rs.1, 95,000
Profit
► Rs.1, 95,000
Loss
Question No: 8 ( Marks: 1 ) - Please choose one
In cost of goods sold statement, the ‘cost of material
consumed’ is equal to:
► Opening raw material inventory + Purchases – Ending raw
material inventory
► Opening raw
material inventory - Purchases + Ending raw material inventory
► Ending raw
material inventory + Opening raw material inventory - Purchases
► Ending raw
material inventory + Opening raw material inventory + Purchases
Question No: 9 ( Marks: 1 ) - Please choose one
|
Particulars |
Rs.
|
|
Opening stock of raw material
|
100,000
|
|
Closing stock of raw material
|
80,000
|
|
Purchases of raw material during the period
|
200, 000
|
|
Cost of Material Consumed
|
?
|
► Rs. 205,000
► Rs. 215,000
► Rs. 220,000
► Rs. 225,000
Question No: 10 ( Marks: 1 ) - Please choose one
Consider the
following inventory record:|
Date
|
Item
|
Quantity
|
Cost/Unit
Rs.
|
Total
Rs.
|
|
Jan. 2
|
Beginning inventory
|
10
|
10
|
100
|
|
Mar. 4
|
Purchase
|
35
|
11
|
385
|
|
May 8
|
Purchase
|
40
|
12
|
480
|
|
Nov. 3
|
Purchase
|
20
|
13
|
260
|
|
De31
|
Merchandise available
|
105
|
|
1,225
|
85 units
were sold, Use the FIFO method of inventory costing and determine the cost of
goods sold.
► Rs. 1,225
► Rs. 1,015
► Rs. 965
► Rs.
992
Question No: 11 ( Marks: 1 ) - Please choose one
Which one of the following is NOT true about Capital
Expenditure?
► Creates future
benefits
► Incurred to
acquire fixed assets
► Incurred to
increase the economic life of existing fixed assets
► Reduce the profit of the
concern
Question No: 12 ( Marks: 1 ) - Please choose one
► Revenue
expense
► Capital
expense
► Capital
receipt
► Revenue receipt
Question No: 13 ( Marks: 1 ) - Please choose one
Accounting is the language of:
► Business
► School
► Proprietor
► Management
Question No: 14 ( Marks: 1 ) - Please choose one
Depreciable value of an asset is equal to:
► Cost + scrap value
► Cost + market price
► Cost – scrap value
► None of the given options
Question No: 15 ( Marks: 1 ) - Please choose one
|
Particulars |
Rs.
|
|
Opening written down value of machine
|
Rs. 2,00,000
|
|
Cost of new machine
purchased during the year
|
Rs. 50,000
|
|
Depreciation during the year
|
Rs. 25,000
|
|
Closing written down value (WDV) of machines
|
?
|
► Rs. 2, 25,000
► Rs. 2, 50,000
► Rs. 2, 75,000
► Rs. 75,000
Question No: 16 ( Marks: 1 ) - Please choose one
An estimate of the income and expenses needed to carry out
business plans for a fiscal year is known as:
► Budgeting
► Costing
► Management
► Auditing
Question No: 17 ( Marks: 1 ) - Please choose one
Which of the following is concerned with to maintain the
books of accounts in a systematic way?
► Accounting
► Recording
► Book-keeping
► Summarizing
Question No: 18 ( Marks: 1 ) - Please choose one
Which of the following statement is TRUE?
► Cash in hand
is always equal to Profit due to accruals
► Cash in hand
is always greater than Profit due to accruals
► Cash in hand
is always Lessor than Profit due to accruals
► Cash in hand is different from
Profit due to accruals
Question No: 19 ( Marks: 1 ) - Please choose one
Which of the following system of recording transactions is
based on dual aspect concept of accounting?
► Double entry system
► Cash accounting system
► Single entry system
► Management system
Question No: 20 ( Marks: 1 ) - Please choose one
Which of the following is/are TRUE with respect to the
rules of Debit & Credit?
► Decrease in income is Debit
► Increase in asset is Debit
► All of the given options
► Increase in income is Credit
Question No: 21 ( Marks: 1 ) - Please choose one
Sales of goods to Mr. X for cash should be debited to:
► X’s account
► Sales account
► Cash account
► Drawings account
Question No: 22 ( Marks: 1 ) - Please choose one
Which of the following period is known as a fiscal Year of
the Government of Pakistan?
► 1st January to 31st
December
► 1st June to 31st
May
► 1st July to 30th June
► 1st October to 30th
September
Question No: 23 ( Marks: 1 ) - Please choose one
Which of the following is/are NOT the example of
intangible assets?
► Copyright
► Goodwill
► Patent
► Land
Question No: 24 ( Marks: 1 ) - Please choose one
Which of the following account would be credited when goods
are given as charity?
► Charity a/c
► Free sample a/c
► Purchases a/c
► Sales a/c
Question No: 25 ( Marks: 1 ) - Please choose one
Which of the following is TRUE for Company’s negative
working capital?
► Current Asset > Current Liability
► Current Asset = Current Liability
► Current Asset < Current Liability
► None of the given options
Question No: 26 ( Marks: 1 ) - Please choose one
Which of the following account would be debited, when goods
are return to suppliers?
► Voucher payable account
► Stock account
► Purchases
account
► Sales account
Question No: 27 ( Marks: 1 ) - Please choose one
Which of the following account would be debited when Rs.5,
000 were paid to vendor?
► Cash
► Voucher payable
► Sundry debtors
► Personal account of customer
Question No: 28 ( Marks: 1 ) - Please choose one
If:
·
Manufacturing
Cost is Rs. 30,000
·
Opening
Work in Process Inventory is Rs. 5,000
·
Closing
Work in Process Inventory is Rs. 10,000
Then:
What is the amount of Cost of Goods
Manufactured?
► Rs. 35,000
► Rs. 25,000
► Rs. 15,000
► Rs. 20,000
Question No: 29 ( Marks: 1 ) - Please choose one
Which one of the following is TRUE with respect
to “FIFO” in inventory valuation?
►
First-In-Freight-Out
►
Freight-In-First-Out
► First-In-First-Out
►
Freight-In-Freight-Out
Question No: 30 ( Marks: 1 ) - Please choose one
Which one of the following is another name of carrying cost
of an asset?
► Book Value
► Residual Value
► Fair Value
► Break up Value
Question No: 31 ( Marks: 1 ) - Please choose one
Which of the following represents tangible resources with
long life used in operation of the business?
► Current assets
► Fixed assets
► Absolute assets
► Liquid assets
Question No: 32 ( Marks: 1 ) - Please choose one
What is the treatment of Accumulated Depreciation in
accounting?
► Charged to
profit and loss account
► Written in
balance sheet under the head of current assets
► Written in
balance sheet under the head of liabilities
► Written in balance sheet as a
reduction in relevant fixed asset
Question No: 33 ( Marks: 1 ) - Please choose one
Which of the following is a total depreciation recorded on an
asset since its acquisition?
► Accumulated Depreciation
► Depreciation
► Amortization
► Depletion
Question No: 34 ( Marks: 1 ) - Please choose one
Which of the following contains a complete and satisfactory
explanation of the difference in balances as per cash book and bank statement?
► Bank reconciliation statement
► Cash statement
► Balance statement
► Bank statement
Question No: 35 ( Marks: 3 )
Differentiate between capital receipt and
revenue receipt.
A.
Capital Receipts are the receipt which we get for issuance of
shares/bonds etc. and the revenue receipt what we get during the normal
operation of company against sales for products/services.
Question No: 36 ( Marks: 5 )
Fallowing are the facts and figures of the business of Mr.
“X”
|
Particulars
|
Rs.
|
|
Balance as per Pass Book (Favorable)
|
600
|
|
Balance as per cash Book (Unfavorable)
|
800
|
|
Un-presented cheque
|
1,440
|
|
Un-credited cheque
|
260
|
Additional information:
a.
A cheque
Rs. 200 paid to M. Jamil has been entered in error in the cash column.
b.
Commission
paid of Rs. 80 has not been entered in the cash book.
c.
The
debit side of the Cash Book (bank column) has been undercasted by Rs. 500.
Required:
Ø Prepare the Adjusted Cash Book
Question No: 37 ( Marks: 5 )
Calculate cost of
Goods Sold with the help of given data and show complete working.
|
Particulars
|
Rs.
|
|
Cost of goods manufactured
|
210,000
|
|
Opening finished goods inventory
|
100,000
|
|
Closing finished goods inventory
|
10,000
|
Solution:
Cost of Goods Sold = Cost of goods
manufactured + Opening finished goods inventory-Closing Finished Goods
Inventory.
Hence, COGS=
210,000+100,000-10,000 = 300,000