O wner s Equit y Assets Revenue Solved & Prepared By Sayyed D anish Omair 69 Q uestion # 3 o f time: 01:38:03 PM ) A business has purchased a building

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10 per share, then what will be the value of paid in capital for each share sold? par value is Rs. 25 Rs.

1 73 s ec(s) Q uestion # 1 of time: 01:37:02 PM ) S uppose that an investor buys shares for Rs. 15 per share from a company whose stock's s tated at Rs. 10 per share, then what will be the value of paid in capital for each share sold? par value is Rs. 25 Rs. 5 c o Rs. 20 Rs Start Time: 01:37 PM Q uestion # 2 of W hich of time: 01:37:33 PM ) the following represents the r esources owned by a business? Liabilities

2 O wner s Equit y Assets Revenue Solved & Prepared By Sayyed D anish Omair 69 Q uestion # 3 o f time: 01:38:03 PM ) A business has purchased a building on cash, how it would be recorded in the journal? Building - Debit; Cash - Credit Cash - Debit; Building - Credit B uilding - Debit; Owner s equity - Credit Building - Debit; Accounts Payable - Credit

3 14 Q uestion # 4 of W hich of time: 01:38:40 PM ) the following statement summarizes the results of operations of the business? corr ect option: Income statement N ot Sure Balance sheet Statement of changes in equity None of the given option M C Q uestion # 5 of F inancial time: 01:40:03 PM ) Mark s: 1 Statments are the end product of: Accounting Department

4 Accounting Cycle Accountant Auditors Solved & P repared By Sayyed Danish Omair 71 Q uestion # 6 of W hich of time: 01:40:35 PM ) the following is NOT a cash outflow for the firm? Depreciation expense Dividends payments Interest payments Tax payments

5 73 Q uestion # 7 of time: 01:41:06 PM ) If a firm has Rs. 100 in inventories, a current ratio equal to 1.2, and a quick ratio equal to 1.1, what is the firm's Net Working Capital? Rs. 0 Rs. 100 Rs. 200 Rs. 1,000 Solved & Prepared By Sa yyed Danish Omair 72 Q uestion # 8 of time: 01:41:35 PM ) While preparing the cash flows statement, transactions d elivering goods or providing services must be classified as: involving production and

6 Business activities Operating activities Financing activities Investing activities 63 St art Time: 01:37 PM Q uestion # 9 of time: 01:42:05 PM ) A company has declared and paid a cash dividend of Rs. 1 million among the h olders. What will be its effect on the net working capital of the company? share Increase Decrease No effect

7 Depends upon the situation 72 Q uestion # 10 of time: 01:42:42 PM ) Closing entries result in net income being calculated in a nd then transferred to whic h of the following account? the income summary account Revenue account mmon Stock account Dividends account Retained Earnings account Solved & Prepared By Sayyed Danis h Omair 0 7

8 Q uestion # 11 of All of the following have an s tatement of cash flows except: time: 01:43:11 PM ) effect on operating activities while preparing the Provision for doubtful debts Gain or loss on currency exchange rate Depreciation charged on fixed asset Amount received for disposal of a fixed asset rr ect 61 Q uestion # 12 of W hich of time: 01:43:44 PM ) the following is true about the Profit earned by the busin ess? It shows the amount that is received from the custom

9 It always results in increase in closing cash balance I t affects the owner s equity and liabilities in balanc e It may improves the liquidity position of a business 33 Question # 13 of time: 01: 44 :25 PM ) W ho is internal user of the financial statements? Prospective investors Financial institutions Media and the general public Shareholders N ot Sure

10 73 Q uestion # 14 of time: 01:45:33 PM ) In which of the following account, a credit balance would be an evidence for a mistake o r an error? Mr. A Capital Account Cash account Notes payable account Drawings account 68 Start Time: 01:37 PM Q uestion # 15 of time: 01:46:01 PM ) C ash flow relating to investing activities does NOT present the cash effects of which of t he following?

11 Plant assets Intangible assets Investments Debt financing

MGT101 FINANCIAL ACCOUNTING SOLVED QUIZZES 3 LESSON 1 30

MGT101 FINANCIAL ACCOUNTING SOLVED QUIZZES 3 LESSON 1 30 Wages paid to laborers working in the manufacturing department is treated as an expense of: Cost of goods sold Administrative expense Selling expense