MGT 101 Final Term Solved Papers FINANCIAL ACCOUNTING

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By: Cyber Devil

Question # 1 of 15 ( Start time: 05:38:27 PM ) Total Marks: 1 Which of the following is / are the particular/s of a cash book? (1) Date of transaction (2) Account title (3) Amount Select correct option: 1 only 1 & 2 only 1 & 3 only 1, 2 & 3 Question # 2 of 15 ( Start time: 05:38:51 PM ) Total Marks: 1 The total of all costs incurred to convert raw material into finished goods is known as: Select correct option: Prime cost Conversion cost Sunk cost Opportunity cost Question # 3 of 15 ( Start time: 05:39:09 PM ) Total Marks: 1 Amount generated from sales in a business is called: Select correct option: Income Net Income Gross Profit Operating profit Question # 4 of 15 ( Start time: 05:39:57 PM ) Total Marks: 1 Cost of goods manufactured - opening work in process + ending work in process =? Select correct option: Cost of goods sold Prime cost Conversion cost Total factory cost Question # 5 of 15 ( Start time: 05:41:10 PM ) Total Marks: 1 Which of the following is the example of current liability? Select correct option: Notes payable Notes receivable

Accounts receivable Prepaid expenses

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Question # 6 of 15 ( Start time: 05:41:27 PM ) Total Marks: 1 What will be debited, if business sold goods for Rs.10, 000 on credit? Select correct option: Cash account Sales account Accounts receivable account Purchases account Question # 7 of 15 ( Start time: 05:42:01 PM ) Total Marks: 1 Which of the following particular is NOT included in journal voucher? Select correct option: Name of organization Bank receipt number Debit amount Credit amount Question # 8 of 15 ( Start time: 05:42:25 PM ) Total Marks: 1 Consider the following data: Particulars Rs. Assets ? Owner's equity 35,000 Liabilities 90,000 Select correct option: Rs. 35,000 Rs. 55,000 Rs. 1, 25,000 Rs. 1, 05,000 Question # 9 of 15 ( Start time: 05:43:03 PM ) Total Marks: 1 What would conversion costs if costs of raw materials, direct labor costs, and manufacturing overhead costs Rs.80,000, Rs.50,000, and Rs.60,000, respectively? Select correct option: Rs.130, 000 Rs.110, 000 Rs.140, 000 Rs.190, 000 Question # 10 of 15 ( Start time: 05:43:40 PM ) Total Marks: 1 The main purpose of _________ is to ascertain true result of the business operation during particular period of time. Select correct option: Cost Accounting Financial Accounting Managerial Accounting Tax Accounting Question # 11 of 15 ( Start time: 05:44:26 PM ) Total Marks: 1 If cost of sales is Rs. 90,000, income from sales Rs. 200,000 and operating expenses Rs. 100,000. What will be net result? Select correct option: Rs. 5,000 Losses Rs.10, 000 Profits

Rs 1, 95,000 Profits Rs 1, 95,000 Losses

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Question # 12 of 15 ( Start time: 05:45:12 PM ) Total Marks: 1 What is the next step to Journalizing in Accounting cycle? Select correct option: Recording Posting Balancing Analyzing Question # 13 of 15 ( Start time: 05:45:32 PM ) Total Marks: 1 Consider the following data: Particulars Rs. Assets 99,500 Owner's equity 50,500 Liabilities ? Select correct option: Rs. 49,000 Rs. 55,000 Rs. 125,000 Rs. 115,700 Question # 14 of 15 ( Start time: 05:46:07 PM ) Total Marks: 1 Net Profit = Income - _____________ Select correct option: Liabilities Assets Expenses Capital Question # 15 of 15 ( Start time: 05:46:39 PM ) Total Marks: 1 Depreciation arises because of: Select correct option: Fall in the market value of an asset Fall in the value of money Physical wear and tear All of the given options Question # 1 of 15 ( Start time: 05:53:02 PM ) Total Marks: 1 Which of the following account balance/s is/are shown on credit side of Trial Balance? (It is assumed that all account balances are shown on normal balance) Select correct option: Capital account Sundry creditors account Accounts payable account All of the given options Question # 2 of 15 ( Start time: 05:53:47 PM ) Total Marks: 1 In case of Income and Expenditure account, Excess of income over expenses in a specified accounting period is called: Select correct option: Profit Loss

Surplus Deficit Question # 3 of 15 ( Start time: 05:54:58 PM ) Total Marks: 1 Which of the following Organization converts raw material into finished goods?

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Select correct option: Trading concern Manufacturing concern Merchandising concern Service concern When total liabilities are subtracted from total assets the remaining amount is known as: Select correct option: Equity or net assets Net income or net loss Total expenses Total revenue Question # 5 of 15 ( Start time: 05:56:21 PM ) Total Marks: 1 Which one of the following is INCORRECT about closing Stock? Select correct option: It is added into current assets It is deducted from Material available for use It becomes opening stock of next year It reduces the resources of business Question # 6 of 15 ( Start time: 05:56:55 PM ) Total Marks: 1 Budget is a plan of income, expenses & other financial operations for: Select correct option: Current period Future period Past period None of the given options Question # 7 of 15 ( Start time: 05:57:33 PM ) Total Marks: 1 Find out the missing value of an Accounting Equation with the help of given data: Cash Rs.100, 000 Debtors Rs.10, 000 Other Assets Rs. 1,000 Owners equity Rs. 1, 000 Liabilities ? Select correct option: Rs. 12,000 Rs. 11,000 Rs. 110,000 Rs. 111,000 Question # 8 of 15 ( Start time: 05:58:42 PM ) Total Marks: 1 Which of the following account summarizes the profitability of business for a specific accounting period? Select correct option: Profit & Loss account Cash flow statement Receipt & Payment account Balance Sheet Question # 9 of 15 ( Start time: 05:59:12 PM ) Total Marks: 1 Which of the following asset is NOT depreciated? Select correct option:

Factory Buildings

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Office Equipment Plant & Machinery Land What will be debited, if Mohsin commenced business with cash? Select correct option: Cash account Capital account Drawings account Proprietor account Question # 11 of 15 ( Start time: 06:00:17 PM ) Total Marks: 1 Which of the following is Not a part of General Ledger? Select correct option: Activity Book Purchase Return Book Purchase Book Sales Book Question # 12 of 15 ( Start time: 06:00:53 PM ) Total Marks: 1 Debit signifies: Select correct option: Increase in Asset account Decrease in liability account Decrease in capital account All of the given options Question # 13 of 15 ( Start time: 06:01:24 PM ) Total Marks: 1 Under the diminishing balance method, depreciation is calculated on: Select correct option: The original cost The scrap value Book value Both original cost and Scrap value Question # 14 of 15 ( Start time: 06:01:57 PM ) Total Marks: 1 The amount charged to depreciation goes on declining in: Select correct option: Depreciation fixed method Annuity method Written-down value method Straight line depreciation method Question # 15 of 15 ( Start time: 06:02:54 PM ) Total Marks: 1 Which of the following is NOT correct? Select correct option: Decrease in Assets will be debit Decrease in Liabilities will be debit Decrease in Expenses will be credit Decrease in Revenue will be debit

Question # 1 of 15 ( Start time: 06:18:38 PM ) Total Marks: 1 What will be the effect on accounting equation if cash is received from a tenant as office rent? Select correct option: Increase cash and decrease equity Increase cash and increase equity Decrease cash and increase equity Decrease cash and increase dividends Question # 2 of 15 ( Start time: 06:19:35 PM ) Total Marks: 1 Which one of the following is INCORRECT about closing Stock? Select correct option: It is added into current assets It is deducted from Material available for use It becomes opening stock of next year It reduces the resources of business Question # 3 of 15 ( Start time: 06:20:07 PM ) Total Marks: 1 Which of the following is a FIRST product of accounting cycle? Select correct option: Voucher General Journal General Ledger Financial Statements Question # 4 of 15 ( Start time: 06:20:37 PM ) Total Marks: 1 If cost of sales is Rs. 95,000, income from sales Rs. 200,000 and operating expenses Rs. 100,000. What will gross profit? Select correct option: Rs. 5,000 Rs. 95,000 Rs. 1, 00,000 Rs.1, 05,000 Question # 5 of 15 ( Start time: 06:21:21 PM ) Total Marks: 1 Which of the following are recorded in Cash Book? Select correct option: Receipts and payments Profits and losses Assets and liabilities Capital and Expenditures Question # 6 of 15 ( Start time: 06:21:52 PM ) Total Marks: 1 Net Profit = Income - _____________ Select correct option: Liabilities Assets Expenses Capital Question # 7 of 15 ( Start time: 06:22:17 PM ) Total Marks: 1 Which of the following particular/s is/are included in payment voucher? Select correct option: Name of organization Cash payment

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Date All of the given options Question # 8 of 15 ( Start time: 06:22:54 PM ) Total Marks: 1 Cost of goods manufactured + opening finished goods ending finished goods =? Select correct option: Total factory cost Cost of goods sold Prime cost Conversion cost Question # 9 of 15 ( Start time: 06:24:08 PM ) Total Marks: 1 Which of the following account is normally NOT exists in the balance sheet of the manufacturing concern? Select correct option: Work in Process Inventory Raw Materials Inventory Merchandise Inventory Finished Goods Inventory Question # 10 of 15 ( Start time: 06:24:51 PM ) Total Marks: 1 If cost of sales is Rs. 90,000, income from sales Rs. 200,000 and operating expenses Rs. 100,000. What will be net result? Select correct option: Rs. 5,000 Losses Rs.10, 000 Profits Rs 1, 95,000 Profits Rs 1, 95,000 Losses Question # 11 of 15 ( Start time: 06:25:32 PM ) Total Marks: 1 All the statements are correct about Journal voucher EXCEPT: Select correct option: Financial data is picked only from journal vouchers to Journal These are used to record all transaction other than cash & bank These are used to make corrections or adjustments to previous Receipt Format of journal voucher is different from other vouchers Question # 12 of 15 ( Start time: 06:26:35 PM ) Total Marks: 1 In case of Income and Expenditure account, Excess of income over expenses in a specified accounting period is called: Select correct option: Profit Loss Surplus Deficit Question # 13 of 15 ( Start time: 06:27:08 PM ) Total Marks: 1 The investment of Rs. 10,000 made by the owner in business will have an effect on which of the following accounts? Select correct option: Cash Account & Capital Account Cash Account & Expense Account Capital Account & Revenue Account Capital Account & Expense Account

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Question # 14 of 15 ( Start time: 06:27:41 PM ) Total Marks: 1 Outsiders claim against the assets of the business is called: Select correct option: Capital Liability Expense Income Question # 15 of 15 ( Start time: 06:28:25 PM ) Total Marks: 1 Consider the following data: Particulars Rs. Assets 75,500 Owner's equity ? Liabilities 40,200 Select correct option: Rs. 35,300 Rs. 55,000 Rs. 125,000 Rs. 115,700 Question # 1 of 15 ( Start time: 06:30:56 PM ) Total Marks: 1 What will be debited, if business bought goods on credit from Mr. Ali? Select correct option: Purchases account Mr. Ali account Cash account Sales account Question # 2 of 15 ( Start time: 06:31:56 PM ) Total Marks: 1 In the cost of goods sold statement, the sum of labor cost and the factory over head is known as: Select correct option: Conversion cost Prime cost Total factory cost Cost of goods manufactured Question # 3 of 15 ( Start time: 06:32:36 PM ) Total Marks: 1 Consider the following data: Particulars Rs. Assets ? Owner's equity 35,000 Liabilities 90,000 Select correct option: Rs. 35,000 Rs. 55,000 Rs. 1, 25,000 Rs. 1, 05,000 Question # 4 of 15 ( Start time: 06:33:17 PM ) Total Marks: 1 When total liabilities are subtracted from total assets the remaining amount is known as: Select correct option: Equity or net assets Net income or net loss Total expenses Total revenue

Question # 5 of 15 ( Start time: 06:33:50 PM ) Total Marks: 1 Which of the following is fiscal Year of Government of Pakistan? Select correct option: 1st January to 31st December 1st June to 31st May 1st July to 30th June 1st October to 30th September Question # 6 of 15 ( Start time: 06:34:32 PM ) Total Marks: 1 Which of the following is/are inventory valuation method(s)? Select correct option: FIFO LIFO Weighted average All of the given options Question # 7 of 15 ( Start time: 06:35:04 PM ) Total Marks: 1 The investment of Rs. 10,000 made by the owner in business will have an effect on which of the following accounts? Select correct option: Cash Account & Capital Account Cash Account & Expense Account Capital Account & Revenue Account Capital Account & Expense Account Question # 8 of 15 ( Start time: 06:35:37 PM ) Total Marks: 1 What will be debited, if business purchased Furniture on cash? Select correct option: Furniture account Cash account Business account Bank account Question # 9 of 15 ( Start time: 06:36:09 PM ) Total Marks: 1 Cost of goods manufactured + opening finished goods ending finished goods =? Select correct option: Total factory cost Cost of goods sold Prime cost Conversion cost Question # 10 of 15 ( Start time: 06:36:51 PM ) Total Marks: 1 Which of the following contents are included in the Cost of goods sold? Select correct option: Opening stock Purchases Freight in All of the given options Question # 11 of 15 ( Start time: 06:37:32 PM ) Total Marks: 1 Particulars Rs. Opening written down value of machine 1,00,000 Cost of new machine purchased during the year 50,000 Depreciation during the year 20,000 Closing written down value (WDV) ? Select correct option:

Rs. 1,30,000 Rs. 1, 50,000

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Rs. 1, 20,000 Rs. 70,000 Question # 12 of 15 ( Start time: 06:38:28 PM ) Total Marks: 1 What will be debited, If Mr. A started business with Rs. 2, 00,000. Select correct option: Capital account Cash account Mr. As account Business account Question # 13 of 15 ( Start time: 06:39:03 PM ) Total Marks: 1 In cost of goods sold statement the cost of goods manufactured is equal to: Select correct option: Total factory cost + Opening work in process + Ending work in process Total factory cost + Opening work in process Ending work in process Total factory cost - Opening work in process + Ending work in process Ending work in process +Total factory cost Opening work in process Question # 14 of 15 ( Start time: 06:40:04 PM ) Total Marks: 1 What is nature of Capital account? Select correct option: Debit Credit Expenses Loss Question # 15 of 15 ( Start time: 06:40:34 PM ) Total Marks: 1 The amount charged to depreciation goes on declining in: Select correct option: Depreciation fixed method Annuity method Written-down value method Straight line depreciation method

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