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FINAL TERM EXAMINATION
Total Marks: 60
SEMESTER Fall 2005
MGT101 -Financial Accounting(Paper 2) Duration: 120min
Name: ………………………………………………………………………………………….
INSTRUCTIONS:
Please read the following instructions carefully before attempting any question:
• This exam consists of 5 Multiple Choice Questions (MCQ’s) carrying 2 marks each, 6 Short questions
carrying 5 marks each and 2 Descriptive questions carrying 10 marks.
• You are required to show all the working of short questions as well as Descriptive questions.
• Do not ask any questions about the contents of this examination from anyone.
• You may wish to pace yourself with your own watch, but the Supervisor will be the official timekeeper
of the test.
• Failure to comply with the Supervisor’s directions will result in your test being cancelled. Please comply
with supervisor’s directions to avoid any unpleasant event.
Question No: 1 Marks: 2
Debtors are:
1. Balance Sheet
2. Profit and Loss account
3. Bank Reconciliation Statement
4. Cash Flow statement
Cost of goods sold does not contain which of the following heads of Accounts:
1. The amount raised by the company by the issue of its shares to general public
2. The maximum amount with which a company gets Registration/Incorporation
3. Amount collected on issuance of prospectus and debentures
4. None of the given Options
Ascertain the amount of Net Profit for the year ended 31st December by the following data:
What do you mean by Current Ratio? How it is calculated? What should be its ratio for a business
Organization?
Mr. Abdul Khaliq is a partner in a partnership firm. His capital on July 1, 2004 was Rs. 200,000. He
invested further capital of Rs. 100,000 on March 1, 2005.
You are required to calculate his total mark up on June 30 2005. Mark up rate is 5%.
Prepare a Creditors Control Account from the following data and work out the closing balance on
April 30, of creditors.
Apr. 1 Opening Balance 44,500
The following is the trial balance extracted from the books of Naeem & Sons as on 30/06/2002. Prepare
a profit & loss account & balance sheet for the year ended June 30, 2002.
StudentID/LoginID:
Student Name:
Center Name/Code:
Instructions
Please read the following instructions carefully before attempting any question:
• Write your student ID, Name and Centre Name /Code on the question paper as well as on answer
sheet; Failure to do so will result in paper cancellation.
• All questions are compulsory.
• This exam consists of 10 Multiple Choice Questions carrying 1 mark each, 5 True/False carrying 1
mark each, 1 Short Question carrying 5 marks, and 3 Comprehensive Numerical Questions
carrying 10, 15, and 15 marks respectively.
• For each MCQ and T/F statement, read the choices available carefully and “Encircle” (don’t tick
mark) one which you consider is the most suitable answer. Zero marks will be given if more than
one option is “Encircled”.
• Attempt all MCQs, True/False on the question paper, no credit will be given to the objective
questions (MCQs, True/False) attempted on the answer sheet.
• Cutting and overwriting in objective type questions (MCQs, True/False statements) is not allowed;
if done so, that particular question will be marked Zero.
• Remember not to spend too much time on Objective type questions. Since all MCQs and T/F
questions carry equal marks, it is important to manage your time and response to test questions
effectively.
• Do not ask any questions about the contents of this examination from anyone.
• If you believe that some essential piece of information is missing, make an appropriate assumption
and use it to solve the problem.
• While solving your descriptive part on the answer sheet, question numbers must be written in
accordance with the number specified for each question in the question paper to avoid any
inconvenience.
• Students are advised to solve paper in blue and black ink and do not use red, green ink and led
pencil.
• Writing irrelevant/immoral material will be severely penalized.
• This examination is closed book, closed notes, closed neighbors.
• You may wish to pace yourself with your own watch but the Supervisor will be the official
timekeeper of the test.
• Use of mobile phones is strictly prohibited; switch it off if it is in your custody.
• Failure to comply with the Supervisor’s directions will result in your exam paper being cancelled.
Please comply with supervisor’s directions to avoid any unpleasant event.
• Non-compliance of any of the instructions will be dealt severely.
► Resources in the business are equal to resources supplied by the owner and
outsiders
► Resources in the business are not equal to resources supplied by the owner
and outsiders
Question No: 4 ( Marks: 1 ) - Please choose one
Credit signifies:
► Sole Proprietorship
► Partnership
► Limited Company
Any expenditure that benefits the business for several accounting years is regarded as:
► Capital expenditure
► Revenue expenditure
► Revenue receipt
► Trade discount
► Cash discount
► Commission
If the original cost of an asset is Rs. 2,000 then the written down value of asset after two
years by using the diminishing balance method at the rate of 10% p.a. will be:
► Rs. 1,600
► Rs. 1,620
► Rs. 380
► True
► False
Question No: 12 ( Marks: 1 ) - Please choose one
Balance Sheet discloses the financial position of the business.
► True
► False
Question No: 13 ( Marks: 1 ) - Please choose one
► True
► False
Cash Accounting is the accounting system in which events are recorded as and when they
occur.
► True
► False
In double entry system of book keeping, every business transaction affects the same side
of the same account.
► True
► False
If:
• Original cost of an asset is Rs. 60,000
• Scrape value is Rs. 10,000
• Estimated useful life of an asset is 5 years
Then:
Calculate the annual amount of depreciation using straight line method.
The following errors have been discovered in the books of a business concern:
1. Wage of Rs. 500 paid for the installation of plant debited to Wages Account.
2. Purchases of Office Equipment Rs. 2,000 were recorded as regular purchases of
business.
3. Credit sale of Rs. 600 to Kareem was wrongly debited to Kamran.
4. Rs. 200 drawn by the proprietor was treated as Trade Expenses.
5. Rs. 300 received as a Commission was wrongly credited to Sales Account.
Required:
Pass the rectifying entries only.
The Balance Sheets of the Rohr Company at the end of 2006 and 2007 are as follow:
Land was acquired for Rs. 35,000 in exchange for capital stock, par Rs. 35,000, during the
year; equipment of Rs. 15,000 was acquired for cash. Cash dividends of Rs. 10,000 were
charged to retained earnings during the year; the transfer of net income (Rs. 27,500) to
retained earnings was the only other entry in this account.
Required:
Prepare a statement of cash flow.
The following Trial Balance was extracted from the books of Naeem & Sons on 31st
December, 2007. You are required to prepare an Income Statement / Profit and Loss
Account for the year ended on 31st December, 2007 and a Balance Sheet as at that date:
Debit Credit
Particulars
Rs. Rs.
Cash 5,000
Accounts Receivable 9,000
Merchandise Inventory on 1.1.2007 6,000
Plant and Machinery 24,000
Land and Building 82,000
Furniture and Fixtures 2,600
Capital 136,000
Accounts Payable 3800
Purchases 60,000
Purchases returns and allowances 2,800
Sales 70,000
Sales returns and allowances 4,600
Insurance Prepaid 3,400
Advertisement expenses 4,000
Salaries expenses 12,000
Total 212,600 212,600
ADDIONAL INFORMATION:
• Prepaid insurance on 31st December, 2007 is Rs. 1,400
• Outstanding salaries Rs. 1,000
• Depreciation on Plant and Machinery @ 10% p.a.
• Merchandise inventory on 31st December, 2007 was valued at Rs. 6,000
FINALTERM EXAMINATION
Fall 2008
MGT101- Financial Accounting (Session - 1)
► Asset
► Liability
► Revenue
► Deferred expense
► Asset
► Liability
► Revenue
► Deferred expense
► Rs. 98,000
► Rs. 1, 47,000
► Rs. 2, 45,000
► Rs. 3, 43,000
► Rs. 98,000
► Rs. 147,000
► Rs. 245,000
► Rs. 343,000
Which of the following statement in NOT TRUE about the limited company form of
business?
► Subscribers
► Shareholders
► Managers
► Directors
Which of the following can offer its share to general public at large?
Current accounts of the partners should be opened when the capitals are:
► Normal
► Floating
► Fixed
► Fluctuating
► Balance Sheet
► Profit & Loss Account
► Trading Account
► Both Balance Sheet and Profit & Loss Account
Which of the following account is affected from the Drawings of cash in sole-
proprietorship business?
► Capital account
► Shareholder account
► Liability account
► Expense account
► It has been bought recently and was bought new and not used
► It can be realized in cash or sold or consumed in the business within one
year
► It is a piece of new machinery that is expected to last for at least ten years
► All of the given options
► Administrative expenses
► Marketing expenses
► Selling expenses
► Financial expenses
Particulars Rs.
Closing value of stock 40,000
Write off Bad debts (given in adjustments) 2,400
Sundry Debtors (given in trial balance) 33,200
Provision is created on Debtors at 10%
Identify the Total amount deducted from Sundry debtors.
► Rs. 460
► Rs. 2,400
► Rs. 3,080
► Rs. 5,480
Which of the following rectifying entry will be recorded, if sales to Mr. “A” of Rs.336 have
been debited to Mr. “B” account?
Which of the following account(s) will be affected, while rectifying the error of sales
Rs.100 to Mr. “A” recorded in the purchases book?
► Sales account
► Purchase account
► A’s account and Sales account
► Sales account, purchase account and A’s account
► Bills Receivable
► Return inwards
► Credit purchases
► Discount allowed
► Subsidiary Ledgers
► Creditors Control Accounts
► Debtors Control Accounts
► All of the given options
► Provision for doubtful debts a/c Rs. 1,000 (Dr) & Profit & Loss a/c Rs. 1,000 (Cr)
► Profit & Loss a/c Rs. 2,000 (Dr) & Provision for doubtful debts a/c Rs. 2,000 (Cr)
► Provision for doubtful debts a/c Rs. 2,000 (Dr) & Profit & Loss a/c Rs. 2,000 (Cr)
► Profit & Loss a/c Rs. 1,000 (Dr) & Provision for doubtful debts a/c Rs. 1,000
(Cr)
► Rs. 4, 30,000
► Rs. 4, 50,000
► Rs. 4, 70,000
► Treated as a reserve
► Treated as a contra asset
► Treated as a surplus
► Treated as an expense
Find out the missing value of an Accounting Equation with the help of given data:
► Raw material
► Work in process
► Merchandise inventory
► All of the given options
► Rs.7, 500
► Rs.7, 978
► Rs.8, 000
► Rs.8, 400
► Rs. 205,000
► Rs. 215,000
► Rs. 220,000
► Rs. 225,000
What would be the value of total factory cost, if the cost of material consumed during
the month is Rs. 6,000, labor cost incurred is Rs. 2,000 and the factory over head cost
is Rs. 2,500?
► Rs. 6,000
► Rs. 8,000
► Rs. 4,500
► Rs. 10,500
► Interest expenses
► Wages and salaries
► Depreciation expenses
► Discount Allowed
► Rs. 15,000
► Rs. 35,000
► Rs. 55,000
► Rs. 60,000
Identify that which of the following particular(s) would NOT be shown in the format of a
Cash Book?
(1) Cheque number
(2) Date of transaction
(3) Amount of transaction
► (1) only
► (1) & (2) only
► (1) & (3) only
► (2) & (3) only
► Journalizing
► Posting
► Balancing
► Analyzing
Economic resources owned by a business and expected to benefit for the future
operations are called:
► Expenses
► Assets
► Capital
► Liabilities
With the help of given data prepare Capital account of a sole trader and calculate
closing balance of capital.
Rs.
Balance b/f 550,000
Drawings 50,000
Profit & Loss (debit balance) 45,000
CAPITAL ACCOUNT
DEBIT SIDE CREDIT SIDE
PARTICULARS AMOUNT PARTICULARS AMOUNT
Profit and loss 45000 Balance b/f 550,000
Drawings 50,000
Balance c/f 455,000
Briefly explain the financial statements prepared by the organization. Why these
are important for manufacturing concern?
December 31
Assets: 2007 2006
Rs. Rs.
Cash 4,000 7,000
XYZ Company
Income Statement
For the year ended 31st December, 2007
Rs.
Sales 500,000
Less: Cost of goods sold 300,000
Gross margin 200,000
Less Operating expenses 180,000
Net Income 20,000
Required:
Prepare a Statement of Cash Flows if dividend of Rs. 8,000 was declared and paid
during the year 2007. There were no sales of plant and equipment during the year.
ANSWER:
Starting balance:
Net income 20,000
Add: adjustment for non cash items
Depreciation 38,000
Operating profit before working capital changes: 58,000
ANSWER:
LEGAL DOCUMENTS REQUIRED FOR FORMATION OF COMPANY:
► Rs. 98,000
► Rs. 1, 47,000 (Correct)
► Rs. 2, 45,000
► Rs. 3, 43,000
► Current Assets
► Current Liability
► Long-term liability
► Share of profit (Correct)
► Sole-Proprietorship
► Partnership
► Joint Stock Company (Correct)
► All of the given options
► Name of company
► Place of registered office of company
► Objective of the company
► All of the given options (Correct)
► Liquid asset
► Current asset (Correct)
► Fixed asset
► Floating asset
Particulars Rs.
Closing value of stock 40,000
Write off Bad debts (given in adjustments) 2,400
Sundry Debtors (given in trial balance) 33,200
Provision is created on Debtors at 10%
Identify the Total amount deducted from Sundry debtors.
► Rs. 460
► Rs. 2,400
► Rs. 3,080
► Rs. 5,480 (Correct)
► Rs. 3,600
► Rs. 4,000
► Rs. 1,600
► Rs. 2, 400 (Correct)
► Sales account
► Purchase account
► Rs. 1,000
► Rs. 9,000 (Correct)
► Rs. 10,000
► Rs. 11,000
► Error of principle
► Error of omission
► Error of commission (Correct)
► Error of original entry
► Rs. 3,600
► Rs. 2,000
► Rs. 1,600
► Rs. 400 (Correct)
Particulars Rs.
Cash book balance (Dr) 5 000
Unpresented cheques 1 000
Uncredited cheques 500
Particulars Rs.
Assets 1,98,000
Owner's equity 95,000
Liabilities ?
► Rs. 49,000
► Rs. 55,000
► Rs. 1, 25,000
► Rs. 1, 03,000 (Correct)
► Book-keeping
► Accounting
► Auditing
► All of the given options (Correct)
► Bankers
► Accountant of the business (Correct)
► Statutory auditor
► Manger
► Raw material
► Work in process
► Finished goods (Correct)
► Closing stock
► Interest expenses
► Wages and salaries (Correct)
► Depreciation expenses
► Discount Allowed
► Vehicle account
► Cash account
► Business account
► Bank account (Correct)
► Voucher
► General Journal
► General Ledger (Correct)
► Trial Balance
Debit Credit
Particulars
Rs. Rs.
Cash 5,000
Accounts Receivable 9,000
Merchandise Inventory on 1.1.2007 6,000
Plant and Machinery 24,000
Land and Building 82,000
Furniture and Fixtures 2,600
Capital 136,000
Accounts Payable 3800
Purchases 60,000
Purchases returns and allowances 2,800
Sales 70,000
Sales returns and allowances 4,600
Insurance Prepaid 3,400
Advertisement expenses 4,000
Salaries expenses 12,000
Total 212,600 212,600
ADDITIONAL INFORMATION:
i Prepaid insurance on 31st December, 2007 is Rs. 1,400
i Outstanding salaries Rs. 1,000
i Depreciation on Plant and Machinery @ 10% p.a.
i Merchandise inventory on 31st December, 2007 was valued at Rs. 6,000
Debit Credit
Particulars
Rs. Rs.
Drawings 14,000
Capital Account 80,000
Opening Stock 55,000
Purchases 485,000
Sales 610,000
Sundry Debtors 80,000
Sundry Creditors 60,500
Sales Returns 5,000
Carriage Inwards 6,000
Salaries 28,000
Rent, Rates, Taxes 15,000
Insurance 4,000
Machinery 50,000
Furniture 5,000
Cash in hand 3,500
Total 750,500 750,500
Adjustments:
i Depreciate machinery and furniture @20%p.a.
i Outstanding Salaries Rs. 2,000
i Insurance paid in advance Rs. 500
i Maintain @5% reserve for doubtful debts on debtors.
i Closing Stock was valued at Rs. 60,000
INSTRUCTIONS:
Please read the following instructions carefully before attempting any question:
Depreciation is:
From the particulars given below, find out the balance, by means of a
statement that would appear in the Pass Book as on 30th June, 2005.
o A depreciation charge
o Dividend paid
o Proceeds on Sales of Fixed Assets
o Tax paid
o Patents
o Copyrights
o Trade marks
o All of the given options
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Student ID/Login
ID
Name
PVC Name/Code
Date
INSTRUCTIONS:
Please read the following instructions carefully before attempting any question:
• This exam consists of 5 Multiple Choice Questions (MCQ’s) carrying 2 marks each, 4 Short
questions carrying 5 marks each and 1 Descriptive questions carrying 10 marks.
• You are required to show all the working of short questions as well as Descriptive question.
• Do not ask any questions about the contents of this examination from anyone.
• You may wish to pace yourself with your own watch, but the Supervisor will be the official
timekeeper of the test.
• Failure to comply with the Supervisor’s directions will result in your test being cancelled. Please
comply with supervisor’s directions to avoid any unpleasant event.
Question Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10 Total
Marks
1. Stocks
2. Debtors
3. Plant and Machinery
4. Cash in hand
Pak Motors buys a stock worth Rs. 30,000 on credit on the last day of his accounting period and
includes these items in Closing Stock. Which of the following figures in the Accounts would be
increased by Rs. 30,000?
1. Cost of Sales
2. Working Capital
3. Gross Profit
4. Current Assets.
1. Asset account
2. Liability account
3. Revenue account
4. Expense account
StudentID/LoginID:
Student Name:
Center Name/Code:
Instructions
Please read the following instructions carefully before attempting any question:
ƒ For each MCQ and T/F, read the choices available and ENCIRCLE one which you consider is the most suitable answer.
Zero marks will be given if more than one option will be marked. Don’t make tick mark (√), only ENCIRCLE the correct option.
ƒ Attempt all MCQs and True/False on the question paper, no credit will be given to the MCQs and True/False attempted on the
answer sheet.
ƒ Remember not to spend too much time on any MCQ. Since all MCQs carry equal marks, it is important to manage your time and
response to test questions effectively.
ƒ Do not ask any questions about the contents of this examination from anyone.
ƒ If you believe that some essential piece of information is missing, make an appropriate assumption and use it to solve the problem.
ƒ You may wish to pace yourself with your own watch, but the Supervisor will be the official timekeeper of the test.
ƒ Failure to comply with the Supervisor’s directions will result in your exam paper being cancelled. Please comply with
supervisor’s directions to avoid any unpleasant event.
► On quarterly basis
► Sales – Purchases
► A business letter
► Voucher
► Book value
► Ledger
► Journal
► Trial Balance
► Balance sheet
A firm purchased marketable securities for Rs. 10,000. What would its effect be on
working capital?
► Remain unchanged
Question No: 9 ( Marks: 1 ) - Please choose one
► One year
► Two years
► Three years
► Five years
► True
► False
Question No: 12 ( Marks: 1 ) - Please choose one
► True
► False
► True
► False
► True
► False
Question No: 15 ( Marks: 1 ) - Please choose one
► True
► False
If:
• Opening inventory of Raw Material Rs. 20,000
• Closing inventory of Raw Material Rs. 10,000
• Purchases Rs. 40,000
• Direct Labour Cost Rs. 10,000
• Factory overhead Cost Rs. 20,000
Then find:
1. Prime cost
2. Conversion cost
If:
• Original cost of machinery Rs. 140,000
• Salvage Value Rs. 40,000
• Estimated useful life is 10 years
Then:
Find the annual value of depreciation using the straight line method and the
value of machinery at the end of 2nd year.
From the following Trial Balance extracted from the Rehman & Sons, prepare a Profit a nd
Loss Account for the year ended 31st December, 2006 and a Balance Sheet as at that date.
Particulars Rs. Rs.
Sales 204,000
Capital 120,000
Bank over Draft 103,560
Sundry Creditors 120,000
Stock 1.1.2006 60,400
Purchases Sundry 231,600
Debtors Returns 109,660
Inward General 3,640
Expenses Plant 6,980
Wages & Salaries 22,620
Building 16,740
Cash in Hand 50,000
Cash at Bank 680
Drawings 8,720
Motive Power 16,960
Dock & Clearing Charges 2,300
Coal, Gas, Water 1,300
Salaries 1,700
Interest on Over Draft 9,820
4,440
► Rs. 1, 29,000
► Rs. 1, 50,000
► Rs. 1, 21,000
► Rs. 71,000
Find out the missing value of an Accounting Equation with the help of given data:
► Bankers
► Accountant of the business
► Statutory auditor
► Manger
► A memorandum statement
► A ledger account
► A part of cash book
► A part of journal
► Revenue Expenditures
► Capital Expenditures
► Financial Expenditures
► Operating Expenditures
► Rs. 205,000
► Rs. 215,000
► Rs. 220,000
► Rs. 225,000
Which of the following account will be credited, when the goods are purchased on
cash?
► Stock account
► Cash account
► Supplier account
► Work in process account
► Rs. 15,000
► Rs. 35,000
► Rs. 55,000
► Rs. 60,000
► Rs.15,000
► Rs. 35,000
► Rs. 55,000
► Rs. 60,000
Which of the following account balance will be shown on debit side of Trial Balance? (It
is assumed that all account balances are shown on normal balance).
► Capital account
► Sundry creditors account
► Accounts payable account
► Cash account
► Purchases account
► Mr. Ali account
► Cash account
► Sales account
► Income Statement
► Balance Sheet
► Trial Balance
► Cash Book
► Account
► Voucher
► Journal
► Ledger
► Account
► Voucher
► Journal
► Trial balance
What will be the effect on accounting equation, when payment is made to the creditor of
the business?
►
►
►
►
►
►
►
►
Question No: 28 ( Marks: 1 ) - Please choose one
►
►
►
►
►
►
►
►
►
►
►
►
►
►
►
►
►
►
►
►
►
►
►
►
►
►
►
►
►
►
►
►
Calculate depreciation of the asset for five years by using written down value
method. Also show accumulated depreciation.
ANSWER
► Rs. 4, 14,000
► Rs. 4, 25,000
► Rs. 3, 86,000
► Rs. 61,000
► Rs. 1, 29,000
► Rs. 1, 50,000
► Rs. 1, 21,000
► Rs. 71,000
► Limited assets
► Depreciateable assets
► Unlimited assets
► None of the given options
► Book-keeping
► Accounting
► Auditing
► All of the given options
► Bankers
► Accountant of the business
► Statutory auditor
► Manger
► Bank statement
► Bank reconciliation statement
► Income statement
► Financial statement
► Rs.86, 400
► Rs. 1, 44,000
► Rs. 2, 40,000
► Rs. 51,840
What would be the value of conversion cost, if the cost of material consumed during the
month is Rs. 5,000, labor cost incurred is Rs. 2,000 and the factory over head cost is
Rs. 1,000?
► Rs. 3,000
► Rs. 8,000
► Rs. 7,000
► Rs. 5,000
Which of the following particulars are included in the specimen of a bank receipt
voucher?
1) Name of the organization
2) Bank code
Date of transaction
Which of the following is an alternate term which can be used for “Capital”?
► Liability
► Owner’s net worth
► Working capital
► Asset
Which of the following statement is TRUE about the positive working capital of a
company?
► Accounts Receivable
► Accounts Payable
► Sales Revenue
► Marketable Securities
► Selling Expenses
► General Expenses
► Financial Expenses
► All of the given options
► Income Statement
► Balance Sheet
► Trial Balance
► Cash Book
► Pass Book
► Cash Book
► Purchase Book
► Sales Book
What will be the effect on accounting equation, when payment is made to the creditor of
the business?
► Intangible Asset
► Liquid Asset
► Current Asset
► Fixed Asset
Assets total Rs.50, 000 and Liabilities total Rs.10, 000. What is the equity of the
business?
vujannat.ning
► Rs. 40, 000
► Rs. 60, 000
► Rs. 10,000
► Rs. 50,000
According to the double entry system of accounting, an account that obtains benefit is:
► Debit
► Credit
► Income
► No need to show as accounting record
► Financial Year
► Accounting Period
► Business Life Cycle
► Accounting Cycle
► Liabilities
► Assets
► Capital
► Income
StudentID/LoginID:
Student Name:
Center Name/Code:
INSTRUCTIONS:
Please read the following instructions carefully before attempting any question:
All questions are compulsory.
This exam consists of 15 Multiple Choice Questions (MCQ’s), 5 fill in the blanks, 5 true
false, 5 short questions carry 3 marks each and 2 descriptive questions carry 10 marks
each.
You should try to complete MCQ’s in 15 - 25 minutes in order to give yourself 120 - 125
minutes for descriptive questions.
For each MCQ question, read the choices available and select the choice which you
consider is the correct answer, by clicking on the appropriate check box.
Save your answer before proceeding to the next question.
Do not click the “Finish button” while solving your paper. Once you clicked the
“Finish” button, you will not be able to access your paper again. Click it at the end of
your paper. That means you have submitted your complete paper.
A clock is given in the exam software. Software will automatically be closed after due
time.
Remember not to spend too much time on any one MCQ. Since all MCQ’s carry
equal marks, it is important to manage your time and responses to test questions
effectively.
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Use of calculator is allowed.
Failure to comply with the Supervisor’s directions will result in your test being
cancelled. Please comply with supervisor’s directions to avoid any unpleasant event.
► Payment voucher
► Receipt voucher
► Journal voucher
Which one of the following item will appear on the balance sheet of a company as current
assets?
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► Prepaid expenses
► Outstanding expenses
If bank statement shows a credit balance, it means balance for bank book.
► Favorable
► Unfavorable
► Overdraft
► The cash receipts and payments that arise from Fixed and Long Term assets
of the organization.
► The cash receipts and payments that arise from Owners of the business and
other long term liabilities of the organization
► Distributable reserves
► Companies Ordinance
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► Details and explanation of items given in the Profit and Loss Account and
Balance Sheet
►
Bankers
► Debtors
► Creditors
► Owners
► Assets
► Liability
► Expenses
► Investments
► Articles of Association
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All expenses incurred up to the stage of incorporation of the company are called:
► Preliminary Expenses
► Installation expenses
► Accrued expenses
► Deferred expenses
► Chief executive
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► Manager
► Subscriber
► Shareholder
The account through which surplus or deficit of a Non Trading Institution is ascertained,
is called account.
Any money taken away by the Owner for his personal use is called
Creditors, accruals and provisions are shown under in the balance sheet.
If the gross profit is Rs.5000 and the net profit is 25% of the gross profit, the expenses
must be Rs.
There are two types of capital accounts in partnership; Fixed capital and
Article of association is a document that contains all the policies and other matters which
are necessary to run the business of the company.
► True
► False
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Revaluation Reserve is created when an asset is re-valued from market value to cost price.
► True
► False
Question No: 23 ( Marks: 1 ) - Please choose one
Cash Flows from Investing Activities shows the investment trends of the business.
► True
► False
Net Profit ratio helps the management of the company to know about cost of production
of the company.
► True
► False
Question No: 25 ( Marks: 1 ) - Please choose one
Factory utilities, supervisor salaries, equipment repairs etc. are example of factory
overheads.
► True
► False
Question No: 26 ( Marks: 3 )
The following Trial Balance is taken out from the books of Khalil & sons as on 31 st
December, 2005.
Dr Cr
Rs. Rs.
Plant and Machinery 100,000
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Opening Stock 60,000
Purchases 160,000
Building 170,000
Carriage Inward 3,.400
Carriage Outward 5,000
Wages 32,000
Sundry Debtors 100,000
Salaries 24,000
Furniture 36,000
Trade Expenses 12,000
Discount on sales 1,900
Advertisement 5,000
Bad Debts 1,800
Drawings 10,000
Bills Receivable 50,000
Insurance 4,400
Bank Balances 20,000
Sales 480,000
Interest Received 2,000
Sundry Creditors 40,000
Bank Loan 100,000
Discount on Purchases 2,000
Capital 171,500
795,500 795,500