Saturday, May 14, 2011

MGT101 Mid Term Solved Past Paper


MIDTERM  EXAMINATION
Fall 2009
MGT101- Financial Accounting (Session - 3)
Ref No: 1048092
Time: 60 min
Marks: 50
Student Info
 StudentID:
 
 Center:
 
 ExamDate:
  12/19/2009 12:00:00 AM

For Teacher's Use Only
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Question No: 1    ( Marks: 1 )    - Please choose one
 We can say that the business is in profit, when:


       ► Assets exceed Expenditure
       ► Assets exceed Liabilities
       Income exceeds Expenditure
       ► Income exceeds Liabilities
   
Question No: 2    ( Marks: 1 )    - Please choose one
 Cost incurred for the maintenance of shop is considered as _________.
       ► Deferred expense
       ► Capital expense
       Revenue expense
       ► Preliminary expense
   
Question No: 3    ( Marks: 1 )    - Please choose one
 If a business purchases machinery for Rs. 30,000 on 31st January 2008 having life of 10 years, this expense will be realized ___________ under the concept of accrual accounting.
       ► For the year 2008 only
       ► For the last day of 10th year only
       ► Over 10 years
       Nothing can be said about it
   
Question No: 4    ( Marks: 1 )    - Please choose one
 Word “Credit” is derived from ______ language.

       ► Latin
       ► English
       ► French
       ► Chinese
   
Question No: 5    ( Marks: 1 )    - Please choose one
 According to the double entry system of accounting, an account that obtains benefit is:
       Debit
       ► Credit
       ► Income
       ► No need to show as accounting record
   
Question No: 6    ( Marks: 1 )    - Please choose one
 An Asset that is NOT physical in nature is called _________.

       Intangible Asset
       ► Liquid Asset
       ► Current Asset
       ► Fixed Asset
   
Question No: 7    ( Marks: 1 )    - Please choose one
 What would be the affect on the components of the accounting equation, if goods are purchased on cash? 

       ► Increase in cash and decrease in equity
       ► Increase in cash and increase in goods
       ► Increase in goods and decrease in cash
       ► Increase in equipment and increase in equity
   
Question No: 8    ( Marks: 1 )    - Please choose one
 Which of the following is CORRECT about the flow of recording a transaction?

       ► Occurrence of event – voucher—Journal—Ledger—Trial Balance—profit and loss account—Balance Sheet 

       ► Occurrence of event—Journal – voucher —Ledger—Trial Balance—profit and loss account—Balance Sheet

       ► Occurrence of event—Ledger – voucher—Journal—Trial Balance—profit and loss account—Balance Sheet 

       ► Occurrence of event—Trial Balance – voucher—Journal—Ledger—profit and loss account—Balance Sheet 

   
Question No: 9    ( Marks: 1 )    - Please choose one
 In an account, if credit side < debit side then the balance is known as:
       ► Negative Balance
       ► Debit Balance
       ► Positive Balance
       Credit Balance
   
Question No: 10    ( Marks: 1 )    - Please choose one
 Bank book is part of:

       ► Voucher
       ► General Journal
       General Ledger
       ► Trial Balance
   
Question No: 11    ( Marks: 1 )    - Please choose one
 While making Income & Expenditure account, Excess of income over expenses in a specified accounting period is called:

       ► Profit
       ► Loss
       ► Surplus
       ► Deficit
   
Question No: 12    ( Marks: 1 )    - Please choose one
 Gross Profit > Operating Expenses=?


       Net Profit
       ► Cost of Goods Sold
       ► Net Loss
       ► Gross Loss
   
Question No: 13    ( Marks: 1 )    - Please choose one
 Accrued expenses are the example of:
       Current liabilities
       Long term liabilities
       Deferred costs
       Capital expenses
   
Question No: 14    ( Marks: 1 )    - Please choose one
 The favorable balance of Profit and Loss account should be:
       ► Added in liabilities
       ► Subtracted from current assets
       ► Subtracted from liabilities
       Added in capital
   
Question No: 15    ( Marks: 1 )    - Please choose one
 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
   
Question No: 16    ( Marks: 1 )    - Please choose one
 Which of the following financial statement DO NOT show the financial health of a business at a specific date?

       Profit and loss account
       Balance sheet
       Statement of financial position
       ► All of the given options
   
Question No: 17    ( Marks: 1 )    - Please choose one
 In which of the following condition a company will have positive working capital?
       ► If current assets > current liabilities
       ► If current Assets < current Liabilities
       ► If current assets = current liabilities
       ► If current assets < current liabilities
   
Question No: 18    ( Marks: 1 )    - Please choose one
 Which of the following particular is NOT included in the specimen of a payment voucher?


       ► Name of organization
       ► Cash payment amount
       ► Date of transaction
       Bank receipt
   
Question No: 19    ( Marks: 1 )    - Please choose one
 The stock of manufacturing concern consists of:


       ► Work in Process Inventory
       ► Raw Materials Inventory
       ► Finished Goods Inventory
       All of the given options
   
Question No: 20    ( Marks: 1 )    - Please choose one
 Following are the inventories of Manufacturing Concern EXCEPT:

       ► Raw material
       ► Work in process
       ► Finished goods
       Merchandise inventory
   
Question No: 21    ( Marks: 1 )    - Please choose one
 The products that are ready for sale are known as:


       ► Raw material
       ► Work in process
       Finished goods
       ► Closing stock 
   
Question No: 22    ( Marks: 1 )    - Please choose one
 Which of the following is an example of direct materials cost?


       Polish and finishing material for chair
       A piece of wood for the production of chair
       ► Production worker’s wages
       ► Depreciation expenses
   
Question No: 23    ( Marks: 1 )    - Please choose one
 The total of all costs incurred to convert raw material into finished goods is known as:

       ► Prime cost
       ► Conversion cost
       ► Sunk cost
       ► Opportunity cost
   
Question No: 24    ( Marks: 1 )    - Please choose one
 In balance sheet fixed assets are shown at:

       ► Cost price
       ► Market value
       ► Fair value
       Written down value (WDV)
   
Question No: 25    ( Marks: 1 )    - Please choose one
 A decrease in value of a fixed asset due to age, wear and tear is known as:
       ► Depreciation
       ► Accumulated Depreciation
       ► Appreciation
       ► Written Down Value
   
Question No: 26    ( Marks: 1 )    - Please choose one
 Cost of asset
Rs. 1,00,000
Life of asset
5 years
Depreciation for each year
Rs. 15,000
Sale price after 5 years
Rs.50,000
Written down value of asset at the end of 5th year
Rs.25,000
Profit or loss on disposal of fixed assets
?

       ► Rs.25, 000 profit
       ► Rs. 75,000 loss
       ► Rs. 15,000 profit
       ► Rs. 1, 00,000 profit
   
Question No: 27    ( Marks: 1 )    - Please choose one
 All the costs incurred on the incomplete assets up to the balance sheet date must be transferred to:

       ► Capital account
       ► Capital work in progress account
       ► Relevant asset account
       ► Owner's equity account
   
Question No: 28    ( Marks: 1 )    - Please choose one
          Consider the following inventory record:

Date
Item
Quantity
Cost/Unit
Rs.
Total
Rs.
Jan. 2
Beginning inventory
10
10
100
Mar. 4
Purchase
35
11
385
May 8
Purchase
40
12
480
Nov. 3
Purchase
20
13
260
De31
Merchandise available
105

1,225

80 units were sold, Use the FIFO method of inventory costing and determine the cost of goods sold.

       ► Rs. 1,225
       ► Rs. 1,015
       ► Rs. 965
       ► Rs. 905
   
Question No: 29    ( Marks: 1 )    - Please choose one
          Consider the following inventory record:

Date
Item
Quantity
Cost/Unit
Total
 2007Jan. 2
Opening inventory
100
Rs.18.00
Rs.1,800
Mar. 4
Purchase
400
     19.00
     7,600
May 8
Purchase
800
     20.00
   16,000
Nov. 3
Purchase
500
     21.00
   10,500
Four hundred units are unsold, Use the FIFO method of inventory costing and determine the value assigned to the 400 units on hand at the end of the period.

       ► Rs.7, 500 
       ► Rs.7, 978
       ► Rs.8, 000
       ► Rs.8, 400
   
Question No: 30    ( Marks: 1 )    - Please choose one
 Bank Reconciliation Statement is:

       ► A memorandum statement
       ► A ledger account
       ► A part of cash book
       ► A part of journal
   
Question No: 31    ( Marks: 1 )    - Please choose one
 Which of the following asset is NOT depreciated?

       ► Factory Buildings
       ► Office Equipment
       ► Plant & Machinery
       ► Land
   
Question No: 32    ( Marks: 1 )    - Please choose one
 The basic purpose of depreciation is to achieve the:
       ► Matching principle
       ► Dual aspect principle
       ► Separate entity concept
       ► Money measurement concept
   
Question No: 33    ( Marks: 1 )    - Please choose one
 Find out the missing value of an Accounting Equation with the help of given data:

Cash
Rs. 22,500
Debtors
Rs. 500
Total Assets
Rs. 80, 385
Accounts payable
Rs. 1,000
Total liabilities
Rs. 20,000

       ► Rs. 82,385 owner’s equity 
       ► Rs. 61,385 owner’s equity 
       ► Rs. 99,885 owner’s equity                 
       ► Rs.  99,385 owner’s equity
   
Question No: 34    ( Marks: 1 )    - Please choose one
 Firms charge depreciation each year:

       ► To ensure there is enough money in the firm to replace the asset
       ► To spread the cost of the asset over its working life
       ► To reduce the profit and thus reduce the dividends they can pay to share holders
       ► Because the law states they must be reduced
   
Question No: 35    ( Marks: 1 )    - Please choose one
 Consider the following data:

Particulars
Rs.
Assets
8,20,000
Owner's equity
3,80,000
Liabilities
?






       ► Rs. 1, 98,000
       ► Rs. 49,000
       ► Rs. 55,000
       ► Rs. 4, 40,000
   
Question No: 36    ( Marks: 1 )    - Please choose one
 Which one of the following is equal to the carrying cost of an asset?
       ► Original cost minus Accumulated depreciation
       ► Original cost plus Accumulated depreciation
       ► Original cost minus Residual value
       ► Written down value minus Accumulated depreciation
   
Question No: 37    ( Marks: 1 )    - Please choose one
 An estimate of the income and expenses needed to carry out business plans for a fiscal year is known as:
       ► Budgeting
       ► Costing
       ► Management
       ► Auditing
   
Question No: 38    ( Marks: 1 )    - Please choose one
 Unfavorable balance of the cash book means:

       Credit balance in cash book
       ► Credit balance in pass book
       Debit balance in cash book
       ► All of the given options
   
Question No: 39    ( Marks: 1 )    - Please choose one
 Net Profit + Expenses= _________

       ► Liabilities
       ► Assets
       ► Capital
       ► Income
   
Question No: 40    ( Marks: 1 )    - Please choose one
 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
   


Question No: 41    ( Marks: 10 )
 The following are some of the causes of difference between the Cash Book and the Pass Book balances. If you start with the Cash Book (Dr.) balance in Bank Reconciliation Statement, will you add them or deduct?

Particulars
Add/Less
1.      Cheques issued but yet not paid by bank.
less
2.      Cheques deposited but not credited by bank.
less
3.      Amount directly deposited into bank by a customer but not recorded in the Cash Book.
add
4.      Dividend collected by bank but not entered in Cash Book.
add
5.      Insurance premium paid by bank but not recorded in Cash Book.
 less
6.      Cheque deposited but no entry was made in Cash Book.
add
7.      Bank charges debited by bank but not credited in the Cash Book
less
8.      Interest on overdraft debited by bank but not recorded in Cash Book.
less
9.      Cheque issued but wrongly debited in Cash Book
less
10. Interest credited by bank but not recorded in cash book
add

2 comments:

  1. this is a good paper's its help me in midterm's.so i am very thankful to the cearter of this site.

    ReplyDelete

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