Mgt101 2009 PApers Solution

Financial Accounting (mgt101) http://vujannat.ning.com Best Website To Help VUStudents Quiz 01 Spring Semester 2009

Quiz 01 http://vujannat.ning.com Best Website To Help VUStudents

Spring Semester 2009 Financial Accounting (mgt101)

Marks 20=1x20Student ID/ Login ID: --------------------------- Student Name: ------------------------- Please read the following instructions carefully before attempting Quiz

• This Quiz covers lesson no. 01- 10

• Due date of quiz no 01 is 26/03/2009. It means that you can submit your solution file till

12 O’clock mid night 27/03/2009.

• All instruction will be considered during marking quiz. So, consider all these.

• To attempt a quiz, students should be asked to submit their solution files (word documents) in

the following shape / form.

Question # Correct Options Question # Correct Options 1. B 11. 2. A 12. 3. D 13. 4. 14. 5. 15. 6. 16. 7. 17. 8. 18. 9. 19. 10. 20.

• Quiz file must be in Word document, all other would be marked zero. • Give the answer according to question • Use only the black font color • Don’t rely only on handouts, use recommended books as well • Avoid choosing more than one option. • Make sure that you upload the solution before due date. No solution will be accepted through

E-mail after the due date. • Cheating or copying of solution is strictly prohibited; No credit will be given to copied

assignment. • Once you upload the quiz on LMS, it will not be replaced under any condition

Financial Accounting (mgt101)http://vujannat.ning.com Best Website To Help VUStudents Quiz 01 Spring Semester 2009

Choose the correct/best option from given MCQs and put your answer in tabular form as drawn above.

1. A business event which can be measured in terms of money and must be

recorded in books of accounts is called: a. Condition b. Information c. Transaction d. Record

2. The price paid for an item, in terms of currency is called:

a. Sale b. Cost c. Debt d. Revenue

3. The investment of cash in the business will result in which of the following? a. An increase in cash and a decrease in equity b. An increase in cash and an increase in equity c. A decrease in cash and an increase in equity d. An increase in fees earned and an increase in equity

4. Find out the missing value of an Accounting Equation with the help of given data:

Furniture Rs. 90,000Cash Rs.100, 000Debtors Rs.10, 000Other Assets Rs. 1,000Owner’s equity Rs. 90, 000

a. Rs. 201,000 liabilities b. Rs. 111, 000 liabilities c. Rs. 290, 000 liabilities d. Rs. 291, 000 liabilities

5. Mr.” A” sold goods for Rs. 300,000 to Mr. “B”, Rs. 300,000 will be treated

as _____________ for business of Mr.” A”. a. Revenue b. Net profit c. Gross profit d. Operating profit


6. Cost incurred for the maintenance of shop is considered as _________.

a. Deferred expense b. Capital expense c. Revenue expense d. Preliminary expense

7. Income of the business includes:

a. Cash sales only b. Credit sales only c. Credit purchases only d. Both cash sales and credit sales

8. The basic accounting principle/concept according to which Business is

independent from its owner(s) is known as: a. Separate Entity Concept b. Matching Concept c. Going Concern Concept d. Materiality Concept

9. Which of the following is CORRECT according to the double entry system of

book-keeping? a. Debit = Credit b. Debit > Credit c. Debit < Credit d. All of the given options

10. According to the double entry system of book keeping, the investment of

Rs.10, 000 in the business made by the owner will effect: a. Cash Account & Capital Account b. Cash Account & Expense Account c. Capita Account & Revenue Account d. Capital Account & Expense Account

11. What will be the effect on accounting equation, when payment is made to the

creditor of the business? a. Increase in an asset and increase in a liability b. Decrease in an asset and decrease in a liability c. Increase in an asset and increase in owner's equity d. Decrease in an asset and decrease in owner's equity

12. When a Liability is reduced or decreased, it is recorded on the:

a. Right or debit side of the account b. Left or debit side of the account c. Left or credit side of the account d. Right or credit side of the account


13. Which of the following transaction have NO affect on stockholders' equity?

a. Purchase of building on credit b. Dividends to stockholders c. Net loss/Net profit d. Investment in cash by stockholders

14. Which of the following is NOT correct?

a. Increase in Assets is Credit b. Decrease in Expenses is Credit c. Increase in Liability is Credit d. Increase in Income is Credit

15. Which of the following is the correct accounting cycle?

a. Occurrence of an Event—Voucher—Journal---Ledger--- Trial Balance--- Profit & Loss Account --- Balance Sheet

b. Occurrence of an Event—Voucher—Ledger----Journal --- Trial Balance--- Profit & Loss Account --- Balance Sheet

c. Occurrence of an Event—Voucher—Ledger----Journal --- Trial Balance --Balance Sheet --- Profit & Loss Account

d. Occurrence of an Event—Voucher—Ledger --- Trial Balance----Journal --Balance Sheet --- Profit & Loss Account

16. Which of the following event is NOT considered as Transaction?

a. Mr. Afnan started business with Rs. 50,000. b. Mr. Afnan took away goods for worth Rs. 2,000 from the business for

personal use. c. Mr. Afnan paid rent Rs. 2,000 d. Mr. Afnan Submitted a tender for goods worth Rs. 10,000

17. Any mistake in ledger can be easily detected with the help of which of the

following? a. Trial Balance b. Income Statement c. Balance Sheet d. Journal

18. A summarized record of transactions related to individuals or things is called

a/an ___________. a. Account b. Voucher c. Journal d. Trial balance

Financial Accounting (mgt101) Quiz 01 Spring Semester 2009

19. The process of transferring journal entry information to the ledger is called:

a. Journalizing b. Posting c. Balancing d. Analyzing

20. An accounting system is used by a business to:

a. Analyze transactions b. Handle routine bookkeeping tasks c. Structure information d. All of the given options

Financial Accounting (mgt101) http://vujannat.ning.com Best Website To Help VUStudents Solution to Quiz 01 Spring Semester 2009

Question # Correct Question # Correct Options Options

1. C 11. B 2. B 12. B 3. B 13. A 4. B 14. A 5. A 15. A 6. C 16. D 7. D 17. A 8. A 18. A 9. A 19. B 10. A 20. D


Quiz 02 Spring Semester 2009

Financial Accounting (mgt101) Marks 20=1x20

Student ID/ Login ID: --------------------------- Student Name: ------------------------- Please read the following instructions carefully before attempting Quiz

• This Quiz covers lesson no. 11- 19

• Due date of quiz no 02 is 10/04/2009. It means that you can submit your solution file till

12 O’clock mid night 11/04/2009.

• All instructions will be considered during marking quiz. So, consider all these.

• To attempt a quiz, students should be asked to submit their solution files (word documents) in

the following shape / form.

Question # Correct Options Question # Correct Options 1. B 11. 2. A 12. 3. D 13. 4. 14. 5. 15. 6. 16. 7. 17. 8. 18. 9. 19. 10. 20.

• Quiz file must be in Word document. • Give the answer according to question. • Use only the black font color • Don’t rely only on handouts, use recommended books as well • Avoid choosing more than one option; otherwise it will be graded zero. • Make sure that you upload the solution file before due date. No solution file will be accepted

through E-mail after the due date. • Cheating or copying of solution is strictly prohibited; No credit will be given to copied

assignment. • Once you upload the quiz on LMS, it will not be replaced under any condition


Choose the correct/best option from given MCQs and put your answer in tabular form as drawn above. 1. Which of the following account balance is shown on debit side of Trial Balance?

(It is assumed that all account balances are shown on normal balance). a. Capital account b. Sundry creditors account c. Accounts payable account d. Sundry debtors account

2. If cost of sales is Rs. 95,000, income from sales Rs. 200,000 and operating

expenses Rs. 300,000. What will be net result? a. Rs.195,000 Losses b. Rs.195,000 Profits c. Rs.105,000 Profits d. Rs.105,000 Losses

3. In which of the following statement opening stock is shown? a. Profit and loss account b. Balance sheet c. Cash flow statement d. Owner’s equity

4. Working capital Rs. 20,000, Current liabilities Rs. 30,000 and fixed assets Rs. 100,000; calculate current assets?

a. Rs. 10,000 b. Rs. 50,000 c. Rs. 110,000 d. Rs. 120,000

5. Which of the following content(s) is (are) included in the Cost of goods sold? a. Opening stock b. Purchases c. Freight in d. All of the given options

6. Which of the following Organization converts raw material into finished goods? a. Trading concern b. Manufacturing concern c. Merchandising concern d. Service concern


7. Which of the following is an example of direct materials cost?

a. Production worker’s wages b. Depreciation expenses c. A piece of wood for the production of chair d. Polish and finishing material for chair

8. In cost of goods sold statement, the ‘cost of material consumed’ is equal to: a. Opening raw material inventory + Purchases – Ending raw material

inventory b. Opening raw material inventory - Purchases + Ending raw material

inventory c. Ending raw material inventory - Opening raw material inventory –

Purchases d. Ending raw material inventory + Opening raw material inventory +

Purchases

9. What would be the value of Total Factory Cost, if cost of raw materials, direct labor costs, and manufacturing overhead costs are Rs.80,000, Rs.50,000, and Rs.60,000 respectively?

a. Rs.130, 000 b. Rs.110, 000 c. Rs.140, 000 d. Rs.190, 000

10. Which of the following assets are shown at written down value in Balance Sheet? a. Current assets b. Liquid assets c. Floating assets d. Fixed assets

11. An asset cost Rs. 50,000, has an estimated residual value of Rs.1, 500, and an estimated useful life of 5 years. What is the depreciation rate?

a. 20.0% b. 25.0% c. 35.5% d. 50.4 %

12. Calculate depreciation of machine after first year by using diminishing balance method with the help of given data? If, Cost of machine = Rs.400, 000 Useful life = 5 years Residual value = Rs.25, 000 Sale price = Rs.40, 000 Rate of depreciation = 40%


a. Rs. 160,000 b. Rs. 11,840 c. Rs. 34,560 d. Rs. 34,860

13. Which one of the following is INCORRECT about closing Stock? a. It is added into current assets b. It is deducted from material available for use c. It becomes opening stock of next year d. It increases the owner’s equity of business

14. In the cost of goods sold statement, Cost of direct material consumed + Direct labor= ___________

a. Conversion cost b. Prime cost c. Total factory cost d. Cost of goods manufactured

15. The total of all costs incurred to convert raw material into finished goods is known as:

a. Prime cost b. Conversion cost c. Sunk cost d. Opportunity cost

16. In cost of goods sold statement the ‘total factory cost’ is equal to: a. Cost of material consumed + Labor cost b. Cost of material consumed + Conversion cost c. Cost of material consumed + Total factory cost d. Cost of material consumed + Factory overhead

17. Which of the following is (are) inventory valuation method(s)? a. FIFO b. LIFO c. Weighted average d. All of the given options

18. The cost of an incomplete fixed asset is transferred to _________ as on Balance Sheet date.

a. Capital account b. Capital work in progress account c. Relevant asset account d. Owner's equity account


19. Under the straight line method of depreciation: a. Amount of depreciation increases every year b. Amount of depreciation remains constant for every year c. Amount of depreciation decreases every year d. None of the given options

20. Which of the following asset is NOT depreciated? a. Factory Buildings b. Office Equipment c. Land d. Plant & Machinery

Financial Accounting (mgt101) Solution to Quiz 02 Spring Semester 2009

Question # Correct option Question # Correct option 1 d 11 d 2 a 12 a 3 a 13 d 4 b 14 b 5 d 15 b 6 b 16 b 7 c 17 d 8 a 18 b 9 d 19 b 10 d 20 c

Mgt101 2009 PApers Solution

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