Quizzes MGT401

7/28/2019 Quizzes MGT401

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Quiz Start Time: 08:07 PM

Time Left34

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Question # 1 of 10 ( Start time: 08:07:20 PM ) Total Marks: 1

Inventories are assets which:

Select correct option:

Used in the supply or production of goods and servic

Held for long term capital appreciation

Held for the process of production for such sale

Recorded at sale value in the books of accounts

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Time Left70

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If the holding company owns marginally less than 100% shares of the subsidiary company then the subsidiary type will betermed as:


Partially Owned Subsidiary


2/40

Wholly Owned Subsidiary

Virtually Wholly Owned Subsidiary

Indirect Subsidiary


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Time Left90

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Which of the following IAS deals with the related party?


IAS 23

IAS 02

IAS 24

IAS 28

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3/40


sec(s)


When capitalization of borrowing cost should be stopped for a qualifying asset?


When substantially all activities that are necessary t

When slightly all activities that are necessary to pre

When a qualifying asset is substantially in use

When a qualifying asset is slightly in use


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Time Left9

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Identify which of the following techniques for valuing inventory are allowed under IAS-2? (i) FIFO (First in First Out) (ii)Average cost (iii) LIFO (Last in First Out) (iv) Replacement cost


(i), (ii), (iii), (iv)

(i), (ii), (iv)


4/40


5/40


Historical cost convention:


Account for only past transactions

Fails to measure the changing price levels over t ime

Records all assets at their cost to the company, with

Has replaced in accounting records by a system of c


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Time Left16

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Which of the following investment are recorded using Cost Method?


Investments made for longer period

Investments made for shorter period

Investments made for shorter and longer period


6/40

None of the given options


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Time Left5

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What is the treatment of Accumulated Depreciation in accounting?


Treated as a reserve

Treated as a contra asset

Treated as a surplus

Treated as an expense


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Time Left 36sec(s)


In case an item of property, plant and equipment is exchanged for similar asset of the enterprise, the cost of the new asset ismeasured at the ---------------- of the old asset.



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Carrying value

Fair value

Future value

Salvage Value


MGT401 Financial Accounting II

Quiz Start Time: 05:49 PM Time Left 53

sec(s)


Which of the following option is/are TRUE with respect to the Disclosure requirement for intangible

assets acquired by the way of Government grants?


The fair value initially recognized

Disclosure for carrying amount

Disclosure for the amount of commitments for acquisition of intangible assets


8/40

All of the given options


sec(s)


Which of the following is the ability to govern the financial and operating policies of an enterprise so as

to obtain from its activities?


Control

Significant Influence

Direct Subsidiary

Indirect Subsidiary


sec(s)


Which one of the following methods for inventory valuation is NOT suitable for homogeneous units?



9/40

FIFO Method

LIFO Method

Weighted Average Method

Specific Identification Method


sec(s)


Which of the following meeting is held once in the life of a company?


Statutory Meeting

Annual General Meeting

Extraordinary Meeting

Board Meeting


sec(s)



10/40

Which of the following is INCORRECT with respect to Perpetual Inventory System?


Receipt of inventory is debited to Stock Account

Issuance of inventory is credited to Stock Account and Debited to Material Consumption Account

Receipt of inventory is debited to Purchase Account

Material Consumption Account becomes the part of Trading Account


sec(s)


Which of the following business is formed by the approval of Ministry of Interior?


Money Exchange Company

Non Banking Finance Corporation

Security Services Providing Company

Corporate Brokerage House



11/40

sec(s)


The closing balance of inventory will be if: Opening inventory will Rs.1, 000, purchases will Rs.10, 000

and cost of sales will Rs.10,500.


Rs. 1,000

Rs. 500

Rs. 1,500

Rs. 950


sec(s)


Which of the following IAS deals with the Borrowing Costs?


IAS 23

IAS 07

IAS 01

IAS 16


12/40


On which certificate, the birth date of a company is mentioned?


Certificate of Corporation

Certificate of Incorporation

Certificate of Quality

Certificate of Excellence


sec(s)


Who sign the Articles of Association (AOA) of a company?


Managers of the company

Employees of the company

Sponsors of the company




13/40

Which of the following is NOT the method of stock valuation?


FIFO Method

Weighted Average Method


Straight Line Method


sec(s)


Which one of the following is a method of stock valuation?


Diminishing Balance Method

Written Down Value Method


Sum of Year Digit Method


sec(s)


14/40


Which of the following statement is/are INCORRECT under the Cost Method for recognition of

investment in associated companies?


Any distribution of profits by the investee company is recorded as an expense

Any distribution of profits by the investor company is recorded as an income

The carrying amount of the investment is increased or decreased to reorganize the investors share of

profits or losses of the investee after the date of acquisition



sec(s)


In case of calling Extraordinary General Meeting (EOGM), at least how much voting right is required by

any director or share holder of a company according to Companies Ordinance 1984?


5% voting rights

10% voting rights

15% voting rights


15/40

20% voting rights

Start Time: 05:49 PM Time Left 75

sec(s)


LIFO means?


Last-In-First-Out

Large Integrated Financial Organization

The Last-In-First-Out method of approximating the cost of stock



16/40

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17/40


Time Left36

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Which of the following is not a recommended method of inventory costing under IAS-2?


FIFO (First in First Out)

LIFO (Last in First Out)

Average Cost



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Time Left48

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18/40

Which of the followings is/are not allowed to be revalued in accordance with IAS-16?


Land

Capital work in progress

Motor vehicles



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Time Left56

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SECP (Securities and Exchange Commission of Pakistan) is governed by the



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Ministry of Interior

Ministry of Affairs

Ministry of Finance

Ministry of Commerce


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Time Left

54

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If the holding company owns more then 50% but less then 100% shares of the subsidiary company then the subsidiary type will

be termed as:


Partially owned subsidiary


20/40

Wholly owned subsidiary

Direct subsidiary

Indirect subsidiary


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Time Left42

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What is the benchmark treatment of borrowing cost under IAS-23?


It should be charged as an expense

It should be capitalized


21/40

It should be both charged as an expense and capital



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Time Left67

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Which of the following sections of the Companies Ordinance 1984 is related to the Statutory Meeting?


Section 157

Section 158

Section 159


22/40

Section 160


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Time Left52

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According to Companies Ordinance 1984, at least what percentage of majority favor is required to pass the "Special

Resolution"?


45%

60%

75%

90%


23/40


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Time Left59

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Which one of the following IAS is related to the Interest in Joint Venture?


IAS 27

IAS 28

IAS 31

IAS 32


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24/40


Time Left36

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What should be the treatment of research cost incurred by a business according to IAS-38?


It should be recorded as a part of capital of the busi

It should be recorded as non-current asset

It should be recorded as current asset

It should be recorded as expense for the period


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Time Left18

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25/40

Which of the following is (are) example(s) of monetary asset(s) with physical existence?


Design

Notes receivable

Trademark

Both design and trademark


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Time Left54

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Which of the following is an identifiable non-monetary asset without physical substance?



26/40

Tangible Asset

Intangible Asset

Floating Asset

Circulating Asset


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Time Left

16

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Impairment loss on an asset is occurred due to:


Internal factors


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External factors

Both internal and external factors

None of the given option


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Time Left46

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On 1st January 2001, a XYZ company purchased a laser printer costing Rs.7,000. The printer has an estimated life of 4 years

after which it will have no residual value. The depreciation charge for 2003 on printer on straight line basis will be:


Rs.1850

Rs.1750


28/40

Rs.1950

None of the given


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Time Left28

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A business has the following items extracted from its accounting records. Cost of Sales Rs.85,000 Opening inventory Rs.10,000

Closing inventory Rs.15,000 What will be the cost of purchased material?


Rs.105,000

Rs.85,000

Rs.100,000


29/40

Rs. 90,000


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Time Left66

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Which of the following entities is profit oriented entity?


NGOs

Trust

Societies

Sole - proprietorship



30/40

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Time Left

36

sec(s)


Which organizations are required special approvals from SECP for their establishment?


Manufacturing Organizations

Non Profit Organizations

Profit Making Organizations

Service Organizations


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Time Left7

sec(s)


31/40



In which year, local legislations of Pakistan permitted to make private limited company by a single person?


2002

2001

2000

1999


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Time Left50

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Which of the following is (are) intangible resources for a company?



32/40

Software licensing

Royalty

Production rights



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Time Left 47sec(s)


Which of the following is (are) related with the IAS 23?


Qualifying Assets


33/40

Amount to be capitalized related to the Borrowing co

Capitalization period related to the Borrowing cost



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Time Left12

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Which of the following statement is/are INCORRECT under the Cost Method for recognition of investment in associated

companies?


Any distribution of profits by the investee company i

Any distribution of profits by the investor company is


34/40

The carrying amount of the investment is increased



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Time Left 31sec(s)


The closing stock will be shown under the head of _________ in Balance Sheet.


Non current Assets

Current Assets

Intangible Assets

Tangible Assets


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Time Left5

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Which of the following is/are INCORRECT with respect to the Capital section of the balance sheet for a sole-proprietorship?


Opening Capital New Capital + Profit for the year

Opening Capital New Capital + Loss for the year =

Opening Capital Loss for the year + Drawings = C



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Time Left36

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The closing balance of inventory will be if: Opening inventory will Rs.1, 000, purchases will Rs.10, 000 and cost of sales will

Rs.10,500.


Rs. 1,000


36/40

Rs. 500

Rs. 1,500

Rs. 950


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Time Left13

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Which of the following is related to the qualitative characteristics that make financial information useful?


Understandability

Comparability

Both Understandability and Comparability

Reliability and Relevancy


37/40


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Time Left

49

sec(s)


Which one of the following IAS is related to the Interest in Joint Venture?


IAS 27

IAS 28

IAS 31

IAS 32


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Time Left63

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What is the treatment of Depreciation in accounting?


Treated as a reserve


38/40

Treated as an expense

Treated as a surplus

Treated as a Liability


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Time Left21

sec(s)


Who issues International Accounting Standards?


Board of International Standards on Auditing

International Accounting Standards Board

Institute of Chartered Accountants of Pakistan

Securities and Exchange Commission of Pakistan


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Time Left33

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Which of the following is (are) related with the IAS 23?


Qualifying Assets

Amount to be capitalized related to the Borrowing co

Capitalization period related to the Borrowing cost



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Time Left76

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How many person(s) is(are) required to takeover the business after the death of a member in case of Single Member company?


Seven

Three


40/40

Two

One


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Quizzes MGT401