MGT101 Midterm Past Paper Fall 2007 Session 5

MIDTERM EXAMINATION

FALL 2007 MGT101 - FINANCIAL ACCOUNTING (Session - 5 ) Marks: 40 Time: 120min

Student Name:

Center Name/Code:

Exam Date: Friday, November 23, 2007

Instructions

ƒ All questions are compulsory. ƒ This exam consists of 10 Multiple Choice Questions (MCQs) carrying one mark each, 5 true false carrying one mark each, 2 short questions carrying 5 marks each and one comprehensive numerical question carrying 15 marks. ƒ For each MCQ and T/F, read the choices available and ENCIRCLE one which you consider is the most suitable answer. Zero marks will be given if more than one option will be marked. Don’t make tick mark (√), only ENCIRCLE the correct option. ƒ Attempt all MCQs and True/False on the question paper, no credit will be given to the MCQs and True/False attempted on the answer sheet. ƒ Remember not to spend too much time on any MCQ. Since all MCQs carry equal marks, it is important to manage your time and response to test questions effectively.

ƒ You may wish to pace yourself with your own watch, but the Supervisor will be the official timekeeper of the test. ƒ Use of calculator is allowed ƒ Use of mobile phones is strictly prohibited; switch it off if it is in your custody. ƒ 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.

Question

Question Marks Question Marks

Q1. A Balance Sheet discloses the financial position of a firm: (1 marks)

For a given period

On a particular point of time

On quarterly basis

Q2. Cost of sales is equal to: (1 marks)

Opening stock – Closing stock + Purchases – Return outwards

Sales – Purchases

Purchases – Return out + Closing stock

Q3. A loss will be considered as capital loss if it: (1 marks)

Relates to fixed assets

Arises due to abnormal reasons

Represents the withdrawal of capital

Q4. An expenditure will be considered as capital expenditure if: (1 marks)

The amount is paid in lump sum

It is intended to benefit the current period

It is intended to benefit the future period

Q5. A written evidence in support of a business transaction is called: (1 marks)

A business letter

Store ledger card

Voucher

Q6. Under diminishing balance method, depreciation is calculated on: (1 marks)

The original cost

The scrap value

Book value

Q7. The books of account in which business transactions are originally recorded in chronological order is known as: (1 marks)

Ledger

Journal

Trial Balance

Balance sheet

Q8. A firm purchased marketable securities for Rs. 10,000. What would its effect be on working capital? (1 marks)

1. Decreased by Rs. 10,000