Reference no: EM131130123

Financial Accounting

Question No: 1 

Particulars	Rs.
Opening written down value of machine	3,00,000
Cost of machine purchased during the year	50,000
Depreciation during the year	9,000
closing written down value (WDV) of the Machine	?

•  Rs. 3, 41,000
•  Rs. 3, 50,000
•  Rs. 3, 59,000
•  Rs. 59,000

Question No: 2 ( M - 1 ) .

Particulars Rs.

Particulars	Rs.
Opening written down value of machine	Rs. 2,00,000
Cost of  new machine purchased during the year	Rs. 50,000
Depreciation during the year	Rs. 25,000
Closing written down value (WDV) of machines	?

 

• Rs. 2, 25,000
• Rs. 2, 50,000
• Rs. 2, 75,000
• Rs. 75,000

Question No: 3 
Consider the following data:

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

Question No: 4 
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. 60,385 owner's equity 
•  Rs. 61,385 owner's equity 
•  Rs. 99,885 owner's equity 
•  Rs. 99,385 owner's equity

Question No: 5 
Find out the missing value of an Accounting Equation with the help of given data:

Furniture	Rs. 90,000
Cash	Rs.1, 00, 000
Debtors	Rs.10, 000
Other Assets	Rs. 1,000
Owner’s equity	Rs. 90, 000

 

•  Rs. 2, 01,000 liabilities
•  Rs. 1, 11, 000 liabilities
•  Rs. 2, 90, 000 liabilities
•  Rs. 2, 91, 000 liabilities

Question No: 6 
When the process of production is completed, all the costs must be charged to:

•  Raw material account
•  Work in process account
•  Finished goods account
•  Merchandise account

Question No: 7 
Which of the following assets are shown at written down value in balance sheet?

•  Current assets
•  Liquid assets
•  Floating assets
•  Fixed assets

Question No: 8 
Which of the following asset is NOT depreciated?

•  Factory Buildings
•  Office Equipment
•  Plant & Machinery
•  Land

Question No: 9 
The main goal of Bank Reconciliation Statement is to determine:

•  If the discrepancy is due to error rather than timing
•  If the discrepancy is due to timing rather than error
•  If the discrepancy is due to error rather than amount
•  If the discrepancy is due to amount rather than timing

Question No: 10 
Sale proceeds of goods are an example of:

•  Revenue expense
•  Capital expense
•  Capital receipt
•  Revenue receipt

Question No: 11 
Which one of the following is NOT true about revenue expenditure?

•  These are the running expenses of the business
•  They improve the financial position of the business
•  They reduce the profit of the concern
•  They do not appear in the balance sheet

Question No: 12 
Consider the following:

Beginning inventory	10 units @ Rs. 10 per unit
First purchase	35 units @ Rs. 11 per unit
Second purchase	40 units @ Rs. 12 per unit
Third purchase	20 units @ Rs. 13 per unit

Eighty units were sold, what is the value of the ending inventory using the FIFO method of inventory costing?

•  Rs.260
•  Rs.232
•  Rs.284
•  Rs.320

Question No: 13 .
Consider the following inventory record:

Date Item Quantity Cost/Unit

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: 14 
If, Cost of machine = Rs.400, 000
Useful life = 5 years
Rate of depreciation= 40%
The book value of machine after one years using diminishing balance method is ?

•  Rs.86, 400
•  Rs. 1, 44,000
•  Rs. 2, 40,000
•  Rs. 51,840

Question No: 15 

Cost of asset	Rs. 1,00,000
Life of asset	5 years
Depreciation for each year	Rs. 5,000
Sale price after 5 years	Rs.50,000
Book value of Asset after 5 years	?

 

•  Rs.25, 000
•  Rs. 75,000
•  Rs. 15,000
•  Rs. 1, 00,000

Question No: 16

Cost of asset	Rs. 1,00,000
Life of asset	5 years
Depreciation for each year	Rs. 5,000
Sale price after 5 years	Rs.50,000
Written down value of asset on 5th year	Rs.75,000
profit or loss on disposal of fixed assets	?

 

•  Rs.25, 000 loss
•  Rs. 75,000 loss
•  Rs. 15,000 profit
•  Rs. 1, 00,000 profit

Question No: 17 

Cost of asset	Rs. 1,00,000
Life of asset	5 years
Depreciation for the each year	Rs. 5,000
Sale price after 5 years	Rs.15,000
Written Down Value of Asset on 5th year	Rs. 75,000
Profit or loss on disposal of fixed asset	?

 

•  Rs. 60,000 loss
•  Rs. 75,000 profit
•  Rs. 25,000 loss
•  Rs. 1, 00,000 profit

Question No: 18 
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: 19 
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: 20 
Which of the following journal entry will be recorded, if the payment of furniture purchased is made through cheque?

•  Furniture account (Dr) and Bank account (Cr)
•  Furniture account (Dr) and Profit & Loss account (Cr)
•  Furniture account (Dr) and Cash account (Cr)
•  Cash account (Dr) and Furniture account (Cr)

Question No: 21 
Which one of the following statement is CORRECT about Long term liabilities?

•  These are due within one year
•  These are consist of all debts, payable after 12 months
•  In working capital, these are deducted from current assets
•  All of the given options

Question No: 22  What type of expenses are paid out of Gross Profit?

•  Selling Expenses
•  General Expenses
•  Financial Expenses
•  All of the given options

Question No: 23 
While making Income & Expenditure account, Excess of income over expenses in a specified accounting period is called:

• Deficit
• Surplus
• Profit
• Loss

Question No: 24 
Which one of the following is NOT prepared by Non profit organizations?

•  Profit & Loss account
•  Income & Expenditure account
•  Receipts & Payments account
•  Balance Sheet

Question No: 25 
Which of the following financial statement summarizes the profitability of an organization for a particular period?

•  Trading and Profit & Loss account
•  Cash Flow Statement
•  Statement of Retained Earnings
•  Balance Sheet

Question No: 26
Which of the following period is known as a fiscal Year of the Government of Pakistan?

•  1st January to 31st December
•  1st June to 31st May
•  1st July to 30th June
•  1st October to 30th September

Question No: 27.
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: 28 
Obligations to pay cash or un-earned incomes by the business are the:

•  Assets
•  Liabilities
•  Equities
•  Expenses

Question No: 29 .
Commercial Accounting is based on:

•  Single entry book keeping
•  Double entry book keeping
•  Both single and double entry book keeping
•  Cash basis of book keeping

Question No: 30
Word "Credit" is derived from ______ language.

•  Latin
•  English
•  French
•  Chinese

Question No: 31 
The basic accounting principle/concept according to which Business is independent from its owner(s) is known as:

•  Separate Entity Concept
•  Matching Concept
•  Going Concern Concept
•  Materiality Concept

Question No: 32

Double entry accounting system includes:

•  Accrual accounting only
•  Cash accounting only
•  Both cash and accrual accounting
•  None of the given options

Question No: 32 
An accounting system is used by a business to:

•  Analyze transactions
•  Handle routine book-keeping tasks
•  Structure information
•  All of the given options

Question No: 33 
Record the following transactions in the General Journal.

Date:	Transactions
Jan 1, 2007	Mr. Asghar started business with cash Rs. 1, 00,000.
Jan 2, 2007	Opened bank account with amount Rs. 50,000.
Jan 4, 2007	Purchased goods for cash Rs. 15,000.
Jan 9, 2007	Payment made to Karachi store (Creditor) Rs. 15,000 by cheque.
Jan14, 2007	Goods returned to Karachi store worth Rs. 1,500.
Jan22, 2007	Goods sold for cash Rs. 2,000.