MGT101 Midterm Past Paper Set 2

Q1. Please choose one Particulars Rs. (1 marks)

Opening written down value of machine 3,75,000 Cost of machine 50,000 Depreciation during the year 11,000 Closing written down value (WDV) of the Machines ?

1. Rs. 4, 14,000
2. Rs. 4, 25,000
3. Rs. 3, 86,000
4. Rs. 61,000

Q2. Please choose one Particulars Rs. (1 marks)

Opening written down value of machine 1,00,000 Cost of new machine purchased during the year 50,000 Depreciation during the year 21,000 Closing written down value (WDV) ?

1. Rs. 1, 29,000
2. Rs. 1, 50,000
3. Rs. 1, 21,000
4. Rs. 71,000

Q3. Firms charge depreciation each year: (1 marks)

1. To ensure there is enough money in the firm to replace the asset
2. To spread the cost of the asset over its working life
3. To reduce the profit and thus reduce the dividends they can pay to share holders
4. Because the law states they must be reduced

Q4. Please choose one 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

Q5. The assets which have a limited useful life are termed as: (1 marks)

1. Limited assets
2. Depreciateable assets
3. Unlimited assets
4. None of the given options

Q6. Please choose one Accountancy covers which of the following area(s): (1 marks)

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

Q7. Bank Reconciliation Statement is prepared by: (1 marks)

1. Bankers
2. Accountant of the business
3. Statutory auditor
4. Manger

Q8. Please choose one ___________ is the detail of transaction in one's account provided by the bank. (1 marks)

1. Bank statement
2. Bank reconciliation statement
3. Income statement
4. Financial statement

Q9. If you start with cash book favorable balance in Bank Reconciliation Statement, which item will be added? (1 marks)

1. Cheque deposited but not credited by the bank
2. Cheques omitted to be deposited into bank
3. Any amount directly collected by bank on behalf of customer but not recorded in cash book
4. Debit side of cash book was overcast

Q10. Please choose one _________ is the amount for which an asset could be exchanged between knowledgeable willing parties in an arm’s length transaction. (1 marks)

1. Present value
2. Fair value
3. Book value
4. Residual value

Q11. Please choose one 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 20 units Rs. 13 per unit Eighty-five 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.268

Q12. If, Cost of machine = Rs.400, 000 (1 marks)

Useful life = 5 years Rate of depreciation= 40% The book value of machine after one years using diminishing balance method is ?

1. Rs.86, 400
2. Rs. 1, 44,000
3. Rs. 2, 40,000
4. Rs. 51,840

Q13. Cost of asset Rs. 1,00,000 (1 marks)

Life of asset 5 years Depreciation for each year Rs. 15,000 Sale price after 5 years Rs.50,000 Written down value of asset at the end of 5th year Rs.25,000 Profit or loss on disposal of fixed assets ?

1. Rs.25, 000 profit
2. Rs. 75,000 loss
3. Rs. 15,000 profit
4. Rs. 1, 00,000 profit