MGT101 Final Term Solved Papers 34-42 by ABR

Paper No:34

Solved by Chanda Rehman & ABr

FINALTERM EXAMINATION Fall 2009 MGT101Financial Accounting (Session - 2) Time: 120 min Marks: 87

Q1. We can say that the business is in profit, when: (1 marks)

1. Assets exceed Expenditure
2. Assets exceed Liabilities
3. Income exceeds Expenditure
4. Income exceeds Liabilities

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

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

Q3. Please choose one According to the double entry system of accounting, an account that obtains benefit is: (1 marks)

1. Debit
2. Credit
3. Income
4. No need to show as accounting record

Q4. When a Liability is reduced or decreased, it is recorded on the: (1 marks)

1. Right or debit side of the account
2. Left or debit side of the account
3. Left or credit side of the account
4. Right or credit side of the account

Q5. When Capital is increased by an amount, it is recorded on the: (1 marks)

1. Left or credit side of the account
2. Right or debit side of the account
3. Left or debit side of the account
4. Right or credit side of the account

Q6. Bank book is part of: (1 marks)

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

Q7. What type of expenses are paid out of Gross Profit? (1 marks)

1. Selling Expenses
2. General Expenses
3. Financial Expenses
4. All of the given options

Q8. Which of the following shows summary of a company's financial position at a specific date? (1 marks)

1. Profit & Loss Account
2. Cash Flow Statement
3. Balance Sheet
4. Income & Expenditure Account

Q9. Which of the following is NOT an example of intangible assets? (1 marks)

1. Franchise rights
2. Goodwill
3. Patents
4. Land

Q10. Which of the following is an example of business liability? (1 marks)

1. Land
2. Building
3. Cash
4. Capital

Q11. The unfavorable balance of Profit and Loss account should be: (1 marks)

1. Added in liabilities
2. Subtracted from current assets
3. Subtracted from liabilities
4. Subtracted from capital

Q12. Which of the following account will be credited, if business bought goods on credit from Mr. Ali? (1 marks)

1. Purchases account
2. Mr. Ali account
3. Cash account
4. Sales account

Q13. Please choose one Interest on loan paid by business is an example of : (1 marks)

1. Deferred expense
2. Revenue expense
3. Capital expense
4. None of the given options

Q14. 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

Q15. Which of the following is NOT a function of bank reconciliation statement? (1 marks)

1. To reconcile the difference between the cash book and the bank statement
2. To check for errors in balance sheet
3. To update omitted entries into the cash book
4. To update omitted entries into the bank statement

Q16. Which of the following entry will be recorded when the Bad Debts are recovered? (1 marks)

1. Cash account (Dr.) & Bad Debts recovered account (Cr.)
2. Accounts Receivable account (Dr.) & Bad Debts recovered account (Cr.)
3. Bad debts recovered account (Dr.) and Profit & Loss account (Cr.)
4. Provision for doubtful debts account (Dr.) & Cash account (Cr.)

Q17. Which of the following subsidiary book(s) is (are) maintained for debtors control account? (1 marks)

1. Sales Day Book
2. Sales Return
3. Debtors Ledger
4. All of the given options