MGT401 Solved Quiz Mega File Lectures 1-31

Which of the following is/are the component(s) of equity?

Share Capital Reserves Share Premium

In which of the following activities, a business should capitalize its incurred expenditures according to IAS-38?

According to IAS-38 the accounting treatment for research costs:

All research costs should be written off at the time of incurring with regard to prudence concept. Revenue nature expenditures are treated as expenses on the face of Income Statement whereas Capital expenditures are treated as Non-current Assets All research costs should be capitalized at the time of incurring with regard to materiality concept. No treatment is required under IAS-38

Which one of the following is related to the Benchmark Treatment for an investment in jointly controlled entities?

Proportionate Consolidation Method

According to the Benchmark Treatment, Which of the following method is used for stock valuation?

FIFO Method or LIFO Method

FIFO or Weighted Average Method

Which of the following is INCORRECT with respect to Periodic Inventory System?

Receipt of inventory is debited to Purchase Account Closing stock is recorded by debiting Stock Account and crediting Trading Account Receipt of inventory is debited to Stock Account No record is made for individual issue in the General Ledger

favor is required to pass the "Special Resolution"?

45% 60% 75% 90%

Which of the following is the Classification of Current Assets with respect to the Companies Ordinance 1984?

Building Land Premises Marketable Securities

Identify which of the following techniques for valuing inventory are allowed under IAS-2? (i) FIFO (First in First Out) (ii) Average cost (iii) LIFO (Last in First Out) (iv) Replacement cost

(i), (ii), (iii), (iv) (i), (ii), (iv) (i), (ii) (iii), (iv) baatao

ABC Chemicals Ltd. acquired an asset in year 2005. After five years, it has been assessed that the carrying value of asset is significantly higher than its recoverable value. What does this situation called in accounting language?

Exchange loss Appreciation Depreciation Impairment loss

Which one the following risk will arise when financial instruments fluctuate due to changes in foreign exchange rates?

Cash Flow Risk

Under which of the following methods for inventory valuation, costs of earliest purchases assumed still to be in inventory?

FIFO Method

Weighted Average Method

If the holding company owns100% shares of the subsidiary company then the subsidiary type will be termed as:

Partially Owned Subsidiary Wholly Owned Subsidiary Direct Subsidiary Indirect Subsidiary

Surplus on revaluation of an asset is a/an:

Realized reserve Notional reserve Actual reserve Repurchased reserve

A debit balance of Rs.5,000 on A’s account in the books of B means that:

A is receivable of B B is receivable of A B owes A A owes B

According to IAS-16, property, plant and equipment are the assets which held for

Production of goods or services Supply of goods or services