MGT401 Final Term MCQs by VU Topper RM

Q1. Which of the following type of the business is governed under the Partnership Act 1932 in Pakistan? Sole- Proprietorship

Partnership Limited Companies Unlimited Companies

Q2. Which of the following is/are not example of current liability?

Sundry Debtors

Loan given to Mr. A for shorter period

Q3. All of the following are the assets of the firm except A building owned by the firm

Goods in transit Money owed to the firm by its debtors Money which the firm has borrowed and has not yet been repaid

Q4. Which of the following is related to the qualitative characteristics that make financial information useful? Reliability only Relevancy only

Both Reliability and Relevancy Comparability

Q5. Which of the following statement is true regarding Going Concern Concept?

The Business is profitable The assets of the Business are valued at Market Value The business will continue until the Directors decide to close it The Business will continue its working

Q6. Under which of the following assumptions, the Financial Statements are to be prepared? Future Assumptions Past Assumptions

Accrual Basis and Going Concern Basis Accrual Basis Assumption only

Q7. Which one of the following is not a physical asset? Term Finance Certificates

Loan Agreements Trade Receivables Goodwill

Q8. Which one of the following is not the example of Financial Instruments?

Share Capital Loans Payable

Inventories

Q9. The firm uses diminishing balance method for calculating

Depreciation. The vehicle costing 20,000 was sold after two years. The sale resulted neither in loss or profit. What was the sale price of the Vehicle?

7,200 12,000 12,800 16,000

Q10. Which of the following is/are not included in the disclosure requirement of Trade Debts with respect to the Companies Ordinance 1984?

Amount due in respect of goods sold Amount due in respect of services rendered Amount due in respect of other contractual obligation Amount due which are in nature of loans or advances

Q11. A firm has two categories of stock. The cost and Net Realizable Value (NRV) of each is as follows:

Cost NRV Category 1 Rs. 35,000 Rs. 22,000 Category 2 Rs. 22,000 Rs. 25,000 What amount will be disclosed? 44,000 47,000 57,000 60,000

Q12. Which of the following method is suitable for calculating the cost of inventory?

When actual costs of individual units of merchandise can be determined from the accounting records?

FIFO Method LIFO Method Weighted Average Method Specific Identification Method

Q13. Which of the following authority regulates/governs the functioning of Companies?

Securities & Exchange Commission of Pakistan Federal Government Ministry of Finance