MGT401 Midterm MCQs 2024 by Miss Mehwish

Past Papers for Mids./Finals are also Available

1. Accounting which recognizes an event as the transaction when cash is received or paid is known as:

• A) Cash basis of accounting
• B) Managerial accounting
• C) Cost accounting
• D) Accrual basis of accounting
• **Correct Option:** A) Cash basis of accounting

Q2. Which of the following is (are) reason(s) of inconsistency?

• A) When an IFRS requires a change in presentation
• B) Significant change in the operations of the entity
• C) All of the given options
• **Correct Option:** C) All of the given options

3. Management may conclude to depart from an IFRS if:

• A) The requirement of such IFRS are considered misleading and conflicting
• B) Is not mandatory to follow
• C) It is due to companies’ policies
• D) It is due to companies’ policies
• **Correct Option:** C) It is due to companies’ policies

4. The statement of financial performance is a:

• A) Statutory financial statement
• B) Secondary statement
• C) Liquidity statement
• D) Net worth Statement
• **Correct Option:** B) Secondary statement

5. Inventory stock should be included in Balance Sheet at:

• A) Higher of its total cost Or its total net realizable value
• B) Its net Realizable value
• C) Cost
• D) Lower of its total cost Or its total net realizable value
• **Correct Option:** D) Lower of its total cost Or its total net realizable value

6. In cash flow statement, capital investments are presented in the:

• B) Investing activity
• **Correct Option:** B) Investing activity

7. With reference to the IASB framework, Consistency entails:

• A) All of the given options
• B) No new Standards being adopted and introduced
• D) The ability to compare the figures of different periods

8. A set of theoretical principles that assist and guide in financial reporting is known as:

• A) Conceptual framework
• B) Accounting standards
• C) Reporting principles
• D) Regulatory framework
• **Correct Option:** A) Conceptual framework

Q9. Which of the following could appear as separate items in the statement of changes in equity required by IAS I Presentation of Financial Statements as part of a company’s financial statements?

• A) Loss on sale of investments
• B) Proceeds of an issue of ordinary shares
• C) Prior year adjustments
• D) Gain on revaluation of land
• **Correct Options:** A) Loss on sale of investments, B) Proceeds of an issue of ordinary shares, C) Prior year adjustments, D) Gain on revaluation of land

10. Comparative Statement of Financial Position / Balance Sheet:

• A) Gives details of income and expenses
• B) Provides a summarized view of the operations of the firm
• C) Presents the change in various items of balance sheet
• D) Compares the financial position of the firm with previous reporting period
• **Correct Option:** D) Compares the financial position of the firm with previous reporting period

1. Loans that have to be repaid within one month are treated as:

• A) Short Term Liabilities
• B) Contingent Liabilities
• C) Medium Term Loans
• D) Long Term Liabilities
• **Correct Option: A) Short Term Liabilities**

2. According to the IAS 7, Purchase of marketable securities in a part of: