MGT401 Final Term MCQs 2026 by VUBuddy

Q1. A machine having cost of Rs. 240,000 and accumulated depreciation of Rs. 36,000 will yield carrying amount of:

1. Rs. 276,000
2. Rs. 200,000
3. Rs. 240,000
4. Rs. 204,000

Correct answer: Rs. 204,000

Q2. Property employed in the business administrative purposes is an example of:

1. Non-current liabilities
2. Investment property
3. Financial assets
4. Owner occupied property

Correct answer: Owner occupied property

Q3. Non-financial assets under non-current assets are categorized into:

1. Property, plant and equipment
2. All of the given options
3. Intangible assets
4. Investment property and other long term assets

Correct answer: All of the given options

Q4. Capitalized research and development cost for next 5 years is to be recorded as:

1. A tangible asset in the balance sheet
2. An intangible asset in the balance sheet
3. An expense in the profit and loss account
4. A deferred expense in the profit and loss account

Correct answer: An intangible asset in the balance sheet

Q5. A machinery whose carrying value is Rs. 310,000 and recoverable amount is Rs. 200,000 on 1st January, 2022

1. Rs. 210,000
2. Rs. 10,000
3. Rs 110,000
4. Rs. 510,000

Correct answer: Rs 110,000

Q6. Under revaluation method, the revaluation is carried out __________

1. After three years
2. For all types of assets
3. For each class of asset
4. Each year

Correct answer: For each class of asset

Q7. In which of the following fixed asset valuation model, the fair value is considered:

1. Cost model
2. Revaluation model
3. Present Value model
4. Current Cost Model

Correct answer: Revaluation model

Q8. Under revaluation model, fixed assets such as machinery and building are measured at:

1. Historical cost less accumulated depreciation
2. Historical cost
3. Fair value less accumulated depreciation
4. Fair Value less Historical cost

Correct answer: Fair value less accumulated depreciation

Q9. Carrying amount of an intangible asset will decrease over the time due to:

1. Increase in accumulated amortization
2. Decrease in demand
3. Decrease in impairment loss
4. Decrease in amortization

Correct answer: Increase in accumulated amortization

Q10. Which of the following is an example of Contra account?

1. Sales Account
2. Cash account
3. Accumulated depreciation
4. Bad Debts

Correct answer: Accumulated depreciation

Q1. Accounting entry for impairment loss will be:

1. Debit impairment loss and credit accumulated impairment loss
2. Debit accumulated impairment loss and credit impairment loss

Correct answer: Debit impairment loss and credit accumulated impairment loss

Q2. Building owned by the reporting entity to earn rental income is an example of:

1. Investment property
2. Owner occupied property
3. Intangible assets
4. Current assets

Correct answer: Investment property

Q3. A machine having cost of Rs. 240,000 and accumulated depreciation of Rs. 36,000 will yield carrying amount of:

1. Rs. 200,000
2. Rs. 204,000
3. Rs. 276,000
4. Rs. 240,000

Correct answer: Rs. 204,000

Q4. Goodwill purchased in an example of

1. Tangible and fixed asset
2. Tangible and current asset
3. Intangible and fixed asset
4. Intangible and current asset

Correct answer: Intangible and fixed asset

Q5. Accounting treatment for intangible fixed assets is discussed in which of the following IAS?

1. IAS 37
2. IAS 16
3. IAS 39
4. IAS 38

Correct answer: IAS 38

Q6. Which of the following is an example of Contra account?

1. Bad Debts
2. Accumulated depreciation
3. Cash account
4. Sales Account

Correct answer: Accumulated depreciation

Q7. If a machinery having impairment loss of Rs. 20,000 and recoverable amount of Rs. 145,000 on 1st January,

1. Rs. 185,000
2. Rs. 125,000
3. Rs. 135,000
4. Rs. 165,000

Correct answer: Rs. 165,000