MGT101 Final Term Current Paper 3

FINALTERM EXAMINATION

MGT101- Financial Accounting

Q1. Shares for which amount is paid by public are called ________ shares. (1 marks)

1. Paid up
2. Authorized
3. Bonus shares
4. All are correct options

Q2. Term "Credit" means_______ by the business. (1 marks)

1. Receiving of benefits
2. It has no effect on business
3. Providing of benefits
4. It depends upon items

Q3. Which of the following is used to record financial transactions in chronological (day-to-day) order? (1 marks)

1. Voucher
2. General Journal
3. General Ledger
4. Trial balance

Q4. Which of the following is CORRECT about the flow of recording a transaction? (1 marks)

1. Occurrence of event – voucher—Journal—Ledger—Trial Balance—profit and loss account—Balance Sheet
2. Occurrence of event—Journal – voucher —Ledger—Trial Balance—profit and loss account—Balance Sheet
3. Occurrence of event—Ledger – voucher—Journal—Trial Balance—profit and loss account—Balance Sheet
4. Occurrence of event—Trial Balance – voucher—Journal—Ledger—profit and loss account—Balance Sheet

Q5. In an account, if credit side < debit side then the balance is known as: (1 marks)

1. Negative Balance
2. Debit Balance
3. Positive Balance
4. Credit Balance

Q6. Which one of the following is a type of General Ledger? (1 marks)

1. Book of original entry
2. ‘T’ Account
3. Source document
4. Day book

Q7. Which of the following is NOT considered a part of financial statements? (1 marks)

1. General Ledger
2. Balance Sheet
3. Profit and Loss Account
4. Cash Flow Statement

Q8. The difference between current Assets and current liabilities is known as: (1 marks)

1. Working capital
2. Opening stock
3. Closing stock
4. Owner’s equity

Q9. If the Company ABC has current assets Rs. 100,000, current liabilities Rs. 75,000 and fixed assets Rs. 200,000, what would be the value of working capital? (1 marks)

1. Rs. 25,000
2. Rs. 1, 00,000
3. Rs. 1, 75,000
4. Rs. 3, 00,000

Q10. If, Cost of machine = Rs.400, 000 (1 marks)

Useful life = 5 years Residual value = Rs.25, 000 The depreciation of machine per year using straight line method is?

1. Rs. 160,000
2. Rs. 96,000
3. Rs. 75,000
4. Rs. 57,600

Q11. The cost of moving plant and machinery to a new site will be treated as: (1 marks)

1. Revenue expense
2. Capital expense
3. Administrative expense
4. Operating expense

Q12. Which of the following account balance is shown on credit side of Trial Balance? (It is assumed that all account balances are shown on normal balance) (1 marks)

1. Cash account
2. Furniture account
3. Vehicle account
4. Capital account

Q13. Find out the missing value of an Accounting Equation with the help of given data: (1 marks)

Rs. 34,500 Accounts payable Rs. 1, 000 Other liabilities Rs. 11,500

1. Rs. 22,000 owner’s equity
2. Rs. 23, 000 owner’s equity
3. Rs. 24,000 owner’s equity
4. Rs. 46,000 owner’s equity

Q14. Consider the following data: (1 marks)

Rs. Assets 1,50,000 Liabilities 1,00,000