MGT101 Final Term Past Paper Fall 2007 Session 3

FINALTERM EXAMINATION

FALL 2007 MGT101 - FINANCIAL ACCOUNTING (Session - 3 ) Marks: 60 Time: 150min

Student Name:

Center Name/Code:

Exam Date: Friday, March 07, 2008

Instructions

•  Write your student ID, Name and Centre Name /Code on the question paper as well as on answer sheet; Failure to do so will result in paper cancellation. All questions are compulsory. This exam consists of 10 Multiple Choice Questions carrying 1 mark each, 5 True/False carrying 1 mark each, 1 Short Question carrying 5 marks, and 3 Comprehensive Numerical Questions carrying 10, 15, and 15 marks respectively. For each MCQ and T/F statement, read the choices available carefully and “Encircle” (don’t tick mark) one which you consider is the most suitable answer. Zero marks will be given if more than one option is “Encircled”. Attempt all MCQs, True/False on the question paper, no credit will be given to the objective questions (MCQs, True/False) attempted on the answer sheet. Cutting and overwriting in objective type questions (MCQs, True/False statements) is not allowed; if done so, that particular question will be marked Zero. Remember not to spend too much time on Objective type questions. Since all MCQs and T/F questions carry equal marks, it is important to manage your time and response to test questions effectively.

While solving your descriptive part on the answer sheet, question numbers must be written in accordance with the number specified for each question in the question paper to avoid any inconvenience. Students are advised to solve paper in blue and black ink and do not use red, green ink and led pencil. Writing irrelevant/immoral material will be severely penalized. This examination is closed book, closed notes, closed neighbors. You may wish to pace yourself with your own watch but the Supervisor will be the official timekeeper of the test. Use of mobile phones is strictly prohibited; switch it off if it is in your custody. Failure to comply with the Supervisor’s directions will result in your exam paper being cancelled. Please comply with supervisor’s directions to avoid any unpleasant event.

•  Non-compliance of any of the instructions will be dealt severely.

Question Marks Question Marks Question Marks Total

Q1. ( Marks: 1 )

Which one of the following assets could be described as a current asset?

1. Stock of goods for resale
2. Machinery to manufacture goods for resale
3. Buildings to house the machinery
4. Land on which the buildings stand

Q2. ( Marks: 1 )

Operating Profit is equal to:

1. Sales - Gross Profit – Cost of goods sold – Operating expenses
2. Sales – Cost of goods sold – Operating expenses
3. Sales - Gross Profit
4. None of the given options

Q3. ( Marks: 1 )

The accounting equation represents:

1. Resources in the business are equal to resources supplied by the owner and outsiders
2. Resources are allocated in the business on cost price
3. Owners give money for the business
4. Resources in the business are not equal to resources supplied by the owner and outsiders

Q4. ( Marks: 1 )

Credit signifies:

1. Increase in asset account
2. Increase in liability account
3. Decrease in capital account
4. None of the given options

Q5. ( Marks: 1 )

A business owned and run by one person is called:

1. Sole Proprietorship
2. Partnership
3. Limited Company
4. None of the given options

Q6. ( Marks: 1 )

Any expenditure that benefits the business for several accounting years is regarded as:

1. Capital expenditure
2. Revenue expenditure
3. Revenue receipt
4. None of the given options

Q7. ( Marks: 1 )

Which of the following option is true?

1. Increase in expense is Debit
2. Increase in asset is Debit
3. Increase in income is credit
4. All of the given options