MGT101 Final Term Current Paper 5

FINALTERM EXAMINATION MGT101- Financial Accounting

Q1. Word “Credit” is derived from ______ language. (1 marks)

1. Latin
2. English
3. French
4. Chinese

Q2. What is the nature of an expense account? (1 marks)

1. Debit
2. Credit
3. Revenue
4. None of the given options

Q3. A summarized record of transactions related to individuals or things is called a/an ___________. (1 marks)

1. Account
2. Voucher
3. Journal
4. Trial balance

Q4. 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

Q5. Which of the following organizations do NOT prepare Income & Expenditure account? (1 marks)

1. Public limited companies
2. Private limited companies
3. Partnership firms
4. All of the given options

Q6. Which of the following account will be credited in the books of XYZ Co. Ltd, if the business purchased a vehicle though cheque? (1 marks)

1. Vehicle account
2. Cash account
3. Business account
4. Bank account

Q7. If the cost of sales is Rs. 60,000, sales are Rs. 90,000 and operating expenses are Rs. 25,000 during the year. What would be the Net Profit? (1 marks)

1. Rs. 5,000
2. Rs. 25,000
3. Rs. 55,000
4. Rs. 60,000

Q8. Which of the following financial statement DO NOT show the financial health of a business at a specific date? (1 marks)

1. Profit and loss account
2. Balance sheet
3. Statement of financial position
4. All of the given options

Q9. The total of all costs incurred to convert raw material into finished goods is known as: (1 marks)

1. Prime cost
2. Conversion cost
3. Sunk cost
4. Opportunity cost

Q10. Which of the following particular is NOT included in the specimen of a Journal Voucher? (1 marks)

1. Name of organization
2. Bank receipt
3. Debit amount
4. Credit amount

Q11. Accountancy covers which of the following area(s): (1 marks)

1. Book-keeping
2. Accounting
3. Auditing
4. All of the given options

Q12. Depreciation arises because of: (1 marks)

1. Fall in the market value of an asset
2. Fall in the value of money
3. Physical wear and tear
4. All of the given options

Q13. Which of the following account will be debited, when the bad debts are recovered? (1 marks)

1. Bad debt recovered a/c
2. Cash a/c
3. Doubtful debts a/c
4. Bad debts a/c

Q14. Consider the following data and identify the amount which will be shown in profit & loss account. (1 marks)

Rs. Bad debts 1,600 2,000

1. Rs. 400
2. Rs. 800
3. Rs. 2,000
4. Rs. 2,400

Q15. Consider the following data and identify the amount which will be shown in profit & loss account. (1 marks)

Rs.