MGT401 Final Term Quiz Mega File by Khalid Bilal

MGT401 Mega Quiz File For Final Term By

Innocent Prince

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?

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

Securities & Exchange Commission of Pakistan

Federal Government Ministry of Finance

Q14. Which of the following is true about the meeting of Directors? The quorum for a meeting of Directors of a listed company should not less than 1/3 of their members or four which is greater.

The quorum for a meeting of Directors of a listed company should not less than 1/3 of their members or four which is lesser. The quorum for a meeting of Directors of a listed company should not less than 1/2 of their members or four which is greater. The quorum for a meeting of Directors of a listed company should not less than 1/2 of their members or four which is lesser.

Q15. Which of the following is true about the Companies Limited by shares?

Company has limited shares to offer Shareholders of the Company are limited

Liability of Shareholders is limited

Liability of Shareholders is unlimited

Q16. Proper Books of Accounts are kept by every company under which of the following section of Companies Ordinance 1984?

Q17. Which of the following is not attributable to the Property Plant & Equipment?

Costs of site preparation

Administration and other general overhead costs

Initial delivery and handling charges Installation and Assembly cost