MGT101 Final Term Past Paper 20

Q1. Net Profit + Expenses= _________ (1 marks)

1. Liabilities
2. Assets
3. Capital
4. Income

Q2. The allocation of the cost of a tangible plant asset to expense in the periods, in which services are received from the asset, is termed as: (1 marks)

1. Appreciation
2. Depreciation
3. Fluctuation
4. None of the given options

Q3. The basic purpose of depreciation is to achieve the: (1 marks)

1. Matching principle
2. Dual aspect principle
3. Separate entity concept
4. Money measurement concept

Q4. If a business pays rent in advance for 12 months, it will be treated as: (1 marks)

1. Prepaid expenses of business
2. Long term liability of business
3. Fixed assets of business
4. Current liability of business

Q5. Cash book is a part of: (1 marks)

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

Q6. Bank Reconciliation Statement is: (1 marks)

1. A memorandum statement
2. A ledger account
3. A part of cash book
4. A part of journal

Q7. If you start with cash book balance (Dr.), which of the following item will be deducted in Bank Reconciliation Statement? (1 marks)

1. Any cheque drawn to creditor but not paid by bank
2. Interest credited by the bank in pass book
3. Cheque deposited but not credited by the bank
4. Dividend collected by bank on behalf of the customer

Q8. The main goal of Bank Reconciliation Statement is to determine: (1 marks)

1. If the discrepancy is due to error rather than timing
2. If the discrepancy is due to timing rather than error
3. If the discrepancy is due to error rather than amount
4. If the discrepancy is due to amount rather than timing

Q9. Which one of the following is NOT true about revenue expenditure? (1 marks)

1. These are the running expenses of the business
2. They improve the financial position of the business
3. They reduce the profit of the concern
4. They do not appear in the balance sheet

Q10. Under the reducing balance method of depreciation: (1 marks)

1. Amount of depreciation increases every year
2. Amount of depreciation remains constant for every year
3. Amount of depreciation decreases every year
4. None of the given options

Q11. Consider the following inventory record: (1 marks)

Item · Quantity · Cost/Unit · Total

2007Jan. 2 Opening inventory Rs.18.00 Rs.1,800 Mar. 4 Purchase 19.00 7,600 May 8 Purchase 20.00 16,000 Nov. 3 Purchase 21.00 10,500 Four hundred units are unsold, Use the FIFO method of inventory costing and determine the value assigned to the 400 units on hand at the end of the period.

1. Rs.7, 500
2. Rs.7, 978
3. Rs.8, 000
4. Rs.8, 400

Q12. Consider the following: (1 marks)

Beginning inventory 10 units Rs. 10 per unit First purchase 35 units Rs. 11 per unit Second purchase 40 units Rs. 12 per unit Third purchase

Q20. units Rs. 13 per unit Eighty units were sold, what is the value of the ending inventory using the FIFO method of inventory costing?

1. Rs.260
2. Rs.232
3. Rs.284
4. Rs.320

Q13. Please choose one Particulars (1 marks)

Rs. Opening stock of raw material 100,000 Closing stock of raw material 85,000 Purchases of raw material during the period 200, 000

Cost of Material Consumed

1. Rs. 205,000
2. Rs. 215,000
3. Rs. 220,000
4. Rs. 225,000

Q14. The amount of depreciation charged on machinery will be debited to: (1 marks)

1. Machinery account
2. Depreciation account
3. Cash account