MGT101- Financial Accounting MIDTERM solve papers EXAMINATION Spring 2010

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Question No: 1 ( Marks: 1 ) - Please choose one
Which of the following account/s will be affected under the rule of accrual accounting, when furniture is purchased on cash?

► Only Cash Account
► Only Furniture Account
► Cash & Furniture Account
► Only Purchases Account

Question No: 2 ( Marks: 1 ) - Please choose one
Obligations to pay cash or un-earned incomes by the business are the:

► Expenses
► Assets
► Liabilities
► Equities

Question No: 3 ( Marks: 1 ) - Please choose one
Which of the following is used to record financial transactions in chronological (day-to-day) order?

► Voucher
► General Journal
► General Ledger
► Trial balance

Question No: 4 ( Marks: 1 ) - Please choose one
Which of the following financial statement summarizes the profitability of an organization for a particular period?


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

Question No: 5 ( 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: 6 ( Marks: 1 ) - Please choose one
If the cost of sales is Rs. 60,000, sales are Rs. 90,000 and operating expenses are Rs. 25,000 during the year. What would be the Net Profit?




► Rs. 5,000
► Rs. 25,000
► Rs. 55,000
► Rs. 60,000