MGT101 Solved Papers by Chanda Rehman and Kamran Haider

Paper No:1

Solved by Chanda Rehman& Kamran Haider 2010 Final Paper

Q7. Which of the following business publishes the Financial Statements? (1 marks)

1. Sole-Proprietorship
2. Partnership
3. Trust
4. Public Limited Company correct

Correct answer: Public Limited Company correct

Q16. Which of the following can offer its share to general public at large? (1 marks)

1. A private limited company
2. A listed company correct
3. A partnership firm
4. A trust

Correct answer: A listed company correct

Q17. Which financial statement show what a business owes at a particular point in time? (1 marks)

1. A cash flow statement
2. The bank statement for the business
3. A balance sheet correct
4. A statement of retained earnings

Correct answer: A balance sheet correct

Q19. The Balance Sheet item that represents the resources invested by the owner is known as: (1 marks)

1. Accounts Receivable
2. Cash
3. Note Payable
4. Owner's Equity correct

Correct answer: Owner's Equity correct

Q25. Which of the following rectifying entry will be recorded, if sales to Mr. “A” of Rs.336 have been debited to Mr. “B” account? (1 marks)

1. A’s account (Dr.) and B’s account (Cr.) correct
2. B’s account (Dr.) and A’s account (Cr.)
3. Sales account (Dr.) and B’s account (cr.)
4. B’s account (Dr.) and Sales account (Cr.)

Correct answer: A’s account (Dr.) and B’s account (Cr.) correct

Q28. If provision is created for doubtful debts, which of the following entry will be passed to record bad debts in control account? (1 marks)

1. Bade debts (Dr) and Debtors Control A/c (Cr)
2. Provision for doubtful debts (Dr) and Debtors Control A/c (Cr)
3. Provision for doubtful debts (Dr) and Debtors A/c (Cr) correct
4. Debtors Control A/c (Dr) and Provision for doubtful debts (Cr)

Correct answer: Provision for doubtful debts (Dr) and Debtors A/c (Cr) correct

Q34. The following balance and discrepancies were found on 31 March 2008: (1 marks)

Rs. Cash book balance (Dr) Unpresented cheques Uncredited cheques

The Bank Statement balance on 31 March 2008 should be:

1. Rs. 5 500 (Dr)
2. Rs. 5 500 (Cr) correct
3. Rs. 4 500 (Dr)
4. Rs. 4 500 (Cr)

Correct answer: Rs. 5 500 (Cr) correct

Q42. Cost of asset (1 marks)

Rs. 1,00,000 Life of asset 5 years Depreciation for each year Rs. 15,000 Sale price after 5 years Rs.50,000 Book value of Asset after 5 years

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

Correct answer: Rs.25, 000 correct

Q44. 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 correct
4. Income & Expenditure Account

Correct answer: Balance Sheet correct

Q1. Debenture is also named as: (1 marks)

1. Share
2. Bond correct
3. Equity
4. Reserve

Correct answer: Bond correct

Q2. A company declares a cash dividend to be paid to its stockholders next month. The effect of the transaction is to: (1 marks)

1. Decrease assets and liabilities.correct
2. Increase assets and stockholders' equity.
3. Decrease assets and stockholders' equity.
4. Increase liabilities and decrease stockholders' equity.

Correct answer: Decrease assets and liabilities.correct

Q4. The net income calculated in the income statement for the accounting period is reported on: (1 marks)

1. Bank Statement
2. Statement of retained earnings
3. Statement of cash flows
4. None of the given options correct

Correct answer: None of the given options correct

Q9. Which of the following is the most important document of the company? (1 marks)

1. Memorandum of Association correct
2. Articles of Association
3. Prospectus
4. Annual Report

Correct answer: Memorandum of Association correct