FIN611 midterm past papers

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Download FIN611 mid term 1.pdf FIN611 midterm past papers FIN611 - Advanced Financial Accounting Download FIN611 mid term 1.pdf FIN611 midterm past papers FIN611 - Advanced Financial Accounting
Download FIN611 mid term 1.pdf FIN611 midterm past papers FIN611 - Advanced Financial Accounting Download FIN611 mid term 1.pdf FIN611 midterm past papers FIN611 - Advanced Financial Accounting
Download FIN611 mid term 1.pdf FIN611 midterm past papers FIN611 - Advanced Financial Accounting Download FIN611 mid term 1.pdf FIN611 midterm past papers FIN611 - Advanced Financial Accounting
Download FIN611 mid term 1.pdf FIN611 midterm past papers FIN611 - Advanced Financial Accounting Download FIN611 mid term 1.pdf FIN611 midterm past papers FIN611 - Advanced Financial Accounting
Download FIN611 mid term 1.pdf FIN611 midterm past papers FIN611 - Advanced Financial Accounting Download FIN611 mid term 1.pdf FIN611 midterm past papers FIN611 - Advanced Financial Accounting

While preparing the profit and loss account, advertisement expenses are allocated and apportioned to the different departments on the basis of:

Select correct option:

 Sales by each department

 Number of employees

 Purchase of goods by each department

Area / Floor space occupied

 Reference

 Which of the following account will be debited for distribution of profit to partners?

Select correct option:

 Profit and loss account

 Profit and loss appropriation account

 Partner’s capital accounts

 Cash account

 

Mr. Asghar introduces the opening capital of Rs. 6,500 in the business and further capital of Rs. 3,000 during the year. His capital at the end of the year is Rs.11,000. What will be the profit for Mr. Asghar?

Select correct option:

 Rs.1,500

 Rs.4,500

 Rs.7,000

 Rs.20,500

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 Solution: Opening capital +Added more capital – Closing capital = Profit

                     6500                 +   3000                        -11000                 = 1500

Which of the following is/are NOT allocated and apportioned on the basis of “Number of employees” by each department?

Select correct option:

 Rent expense

 Bad debts provision

 Depreciation expense

 All of the given options

Rationale: Only those expenses are apportioned on the basis of “Number of employees”. Which are related to employees welfare e.g pension etc.

 

The debit side of the Branch stock account indicates:

Select correct option:

 Inflow of cash

 Outflow of cash

 Inflow of stock

 Outflow of stock

 

http://www.bcvaz.in/financial_accounting/objective_type/branch_accounts.htm

Income & Expenditure account shows subscriptions for the year at Rs. 3,000. It is further given that Subscriptions to the extent of Rs. 500 were outstanding for the current year, the amount to be shown on the debit side of the Receipts & Payments Account will be:

Select correct option:

 Rs. 2,500

 Rs. 3,000

 Rs. 3,500

 Rs. 500

 Solution:

Subscription            = 3000

Less: Outstanding   =   500

                                = 2500

Which of the following is used to extract the opening balance of fixed assets in single entry system?

Select correct option:

 Debtors account

 Cash account

 Statement of affairs

 Assets account

 www.vuzs.info

Which of the following is used to extract the opening balance of loans in single entry system?

Select correct option:

 Creditors account

 Cash account

 Debtors account

 Statement of affairs

 

Which of the following account will be credited in the books of head, when it allocates a part of its own expense to the branch?

Select correct option:

 Branch Account

 Expense Account

 Profit And Loss Account

 Cash account

 Rationale: Expenses will be transferred to branch so will be reduced (credited).

Which of the following expense can NOT be allocated and apportioned by each department separately?

Select correct option:

 Discount allowed

 Group insurance

 General expenses

 Wages and salaries

 

Which one of the following items will NOT appear in the Balance Sheet of a club?

Select correct option:

 Subscriptions received in advance

 Donations received in advance

 Entrance fee paid by the member

 Locker’s rent accrued

 

In the books of head office, the cash sales are recorded in the credit side of:

Select correct option:

 Branch sales account

 Branch stock account

 Head office sales account

 Head office stock account

 

Under Single-entry system, if the capital at the end of the year is less than the capital at the beginning of the year, the difference will represent:

Select correct option:

 Net Profit

 Net loss

 Gross loss

 Gross profit

 

The branch which maintains its own books of accounts is called:

Select correct option:

 Retail branch

 Wholesale branch

 Independent branch

 Dependent branch

  1. Under single entry system, which of the following is prepared in order to have an idea about the financial position on a particular date?
  • Balance sheet
  • Stement of equity
  • Statement of affairs
  • Profit and loss account
  • Which one of the following items should NOT be entered in Receipt & Payment Account of a club?
  • Sale of old newspapers
  • Loss on sale of old furniture
  • Subscriptions received in advance
  • Expenses paid for the previous year
  • Which of the following is NOT included in the credit side of cash book?
  • Discount received
  • Capital payments
  • Closing balance of cash
  • Revenue payments
  • What will be the expense if the gross profit is Rs. 5,000 and net profit is 25% of the gross profit?
  • Rs.1250
  • Rs.3750
  • Rs.4150
  • Rs.6250
  • If the profit is 1/4 of the sales then it is:
  • 1/4 of the cost price
  • 1/5 of the cost price
  • 1/2 of the cost price
  • 1/3 of the cost price
  • Under Single-entry system, if the capital at the end of the year is less than the capital at the beginning of the year, the difference will represent:
  • Net Profit
  • Net loss
  • Gross loss
  • Gross profit
  • Which of the following is NOT a capital receipt?
  • Receipt from sale of fixed assets
  • Receipt of commission
  • Receipt of bank loan (Long-term)
  • Receipt of owners’ equity
  • Which one of the following represents a capital receipt?
  • Receipt of rent
  • Receipt of commission
  • Receipt from sale of goods
  • Long-term loan received from bank
  • In Non-Profit Organizations, excess of income over expenditure is called:
  • Deficit
  • Surplus
  • Net profit
  • Net loss
  1. Which of the following is a statement of all assets, liabilities and capital prepared from incomplete record?
  • Balance sheet
  • Statement of affairs
  • Net worth statement
  • Statement of equity
  1. Individuals or institutions with activities, other than trade, are known as:
  • Manufacturing concerns
  • Non-trading concerns
  • Trading concerns
  • None of the given options
  1. In Non-trading concern, the Receipts & Payments Account records receipts and payments of:
  • Capital nature only
  • Revenue nature only
  • Both capital & revenue nature
  • None of the given options
  1. The difference of two sides of “Receipts & Payments Account” represents:
  • Opening cash balance
  • Closing creditors
  • Closing cash or bank balance
  • Closing debtors
  1. The Single-entry system of book keeping is generally followed by:
  • Large business concerns
  • Non-Trading concerns
  • Small business concerns
  • None of the given options
  1. Which of the following statement shows the financial position of a business at a certain point of time?
  • Income statement
  • Balance sheet
  • Statement of changes in equity
  • Statement of cash flows
  1. Which of the following is/are NOT allocated and apportioned on the basis of “Number of employees” by each department?
  • Rent expense
  • Bad debts provision
  • Depreciation expense
  • All of the given options
  1. Which of the following expense is NOT allocated and apportioned on the basis of purchase of raw material made by each department?
  • Discount receive
  • Import duty
  • Carriage inward
  • Canteen expense
  1. If the owners’ equity and liabilities of the business ABC are worth Rs. 70,000 and Rs.19,000 respectively then the Total Assets consist of:
  • Rs.60,000
  • Rs.89,000
  • Rs.41,000
  • Rs.19,000
  1. Which one of the following items will NOT appear in the Balance Sheet of a club?
  • Subscriptions received in advance
  • Donations received in advance
  • Entrance fee paid by the member
  • Locker’s rent accrued
  • Capital fund of Non-trading concern is equal to:
  • Assets + Income
  • Assets + Liabilities
  • Expenditure + Liabilities
  • Assets – Liabilities
  • Under the net worth method of single entry system, profit is ascertained by calculating _________ and adjusting the drawings.
  • Increase in liabilities
  • Increase in assets
  • Increase in expenses
  • Increase in capital
  • What would be the value of ‘Outstanding subscriptions’ at beginning of the year, if the subscription realized were Rs. 900 and the balance reported in the Balance sheet is Rs. 400?
  • Rs. 900
  • Rs. 400
  • Rs. 500
  • Rs. 1,300
  • The branch which maintains its own books of accounts is called:
  • Retail branch
  • Wholesale branch
  • Independent branch
  • Dependent branch
  • Under the net wroth method of single entry the Net profit is equal to:
  • Closing capital -Opening Capital
  • Opening Capital – Closing capital
  • Opening Capital + Closing capital
  • Total Assets + Total Liabilities
  • Which of the following is NOT a feature of branch expense account, under the stock and debtor system?
  • It is debited with the cash sent to branch
  • It is debited with the discount allowed to branch debtors
  • It is debited with the depreciation of branch fixed assets
  • It is debited with the branch bad debts during the year
  • Which of the following is/are NOT allocated and apportioned on the basis of purchase of raw material by each department?
  • Repair and Renewals
  • Works manager’s salary
  • Selling expense
  • All of the given options
  • Which of the following NOT features of branch debtor account, under the stock and debtor system?
  • It is credited with the discount allowed
  • It is credited with the credit sales
  • It is credited with the sales returns from debtors
  • It is credited with the bad debt during the year
  • Which of the following is equal to sales?
  • Cost of goods sold + Net profit
  • Gross profit – Cost of goods sold
  • Cost of goods sold + Gross profit
  • Cost of goods sold – Gross profit
  • Which of the following is used to extract the opening balance of fixed assets in single entry system?
  • Debtors account
  • Cash account
  • Statement of affairs
  • Assets account
  • Profit of the business can be measured as an increase in:
  • The net liabilities of the business
  • The net worth of the business
  • The net working capital of the business
  • The net drawings of the business
  • The debit side of the Branch stock account indicates:
  • Inflow of cash
  • Outflow of cash
  • Inflow of stock
  • Outflow of stock
  • Which of the following account will be debited in the books of head, when it allocates a part of its own expense to the branch?
  • Branch Account
  • Expense Account
  • Profit And Loss Account
  • Cash account
  • Which of the following method of profit calculation is quite similar to the single entry system under the branch accounting?

Income statement system

  • Debtor system
  • Stock and debtor system
  • Final account system
  • Which of the following account is not appeared in the books of the head office, under stock and debtor system?
  • Branch sales account
  • Branch debtor account
  • Branch stock account
  • Branch cash account
  • Which of the following is similar to the statement of affairs?
  • Income statement
  • Statement of changes in equity
  • Balance sheet
  • Bank reconciliation statement
  • Which of the following account will be credited in the books of head, when it allocates a part of its own expense to the branch?
  • Branch Account
  • Expense Account
  • Profit And Loss Account
  • Cash account
  • Which of the following is used to extract the opening balance of loans in single entry system?
  • Creditors account
  • Cash account
  • Debtors account
  • Statement of affairs
  • Which of the following account will be debited in case of increase in the value of furniture to make a revaluation of all assets and liabilities?
  • Accounts payable
  • Preliminary expenses
  • Furniture Account
  • Inventory Account
  • In the books of head office, the closing accrued expenses of the branch appear in the:
  • Debit side of the expense account
  • Debit side of the debtor account
  • Credit side of the head office account
  • Debit side of the branch account
  • Which of the following account is not attributed to the books of an independent branch?
  • Cash Account
  • Goods-in-Transit Account
  • Creditors Account
  • Capital Account
  • Which of the following statement is NOT TRUE about the branch Trial Balance?
  • It is only prepared by the independent branch
  • It is prepared by the head office
  • It shows the accuracy of debits and credits
  • All the closing balances of ledger accounts appear in Trial Balance
  • Cash returned from branch to the head office is recognized as:
  • An asset of the head office
  • A liability of the head office
  • Drawings of the head office
  • Capital of the head office
  • Which of the following represents the partnership agreement in writing?
  • Partnership registration
  • Partnership deed
  • Partnership-at-will
  • Partnership certification
  • Which of the following is NOT a kind of Domestic branch?
  • Dependent branch
  • Retail branch
  • Whole sale branch
  • None of the given option
  • Which one of the following attribute may raise Goodwill in a business?
  • Good reputation
  • Good customer relationship
  • Outstanding credit rating
  • All of the given option
  • Which of the following would be credited for increasing the provision for deferred tax?
  • Income tax expenses a/c
  • Deferred tax liabilities a/c
  • Provision for liabilities a/c
  • Provision for income tax a/c
  • Which of the following is a statement of all assets, liabilities and capital prepared from incomplete record?
  • Balance sheet
  • Statement of affairs
  • Net worth statement
  • Statement of equity
  • Which of the following is concerned with the maximization of the firm’s earning after tax?
  • Profit maximization
  • Earning per share maximization
  • Shareholder maximization
  • Shareholder’s equity maximization
  • Which of the following is/are equal to “Capital”?
  • Net Assets
  • Assets – Liabilities
  • Net worth of the firm
  • All of the given options
  • Under the net worth method of single entry system, profit is ascertained by calculating _________ and adjusting the drawings.
  • Increase in liabilities
  • Increase in assets
  • Increase in expenses
  • Increase in capital
  • Which of the following is/are the event/s after the balance sheet date with respect to IAS 10?
  • Adjusting events only
  • Non-adjusting events only
  • Both Adjusting and Non-adjusting events
  • None of the given options
  • Under single entry system, which of the following is prepared in order to have an idea about the financial position on a particular date?
  • Balance sheet
  • Stement of equity
  • Statement of affairs
  • Profit and loss account
  • Under benchmark treatment borrowing costs are:
  • Classified as specific
  • Classified as general
  • Classified as contingent liability
  • Not classified
  • While preparing the profit and loss account, “Carriage Inwards” is allocated and apportioned to the different departments on the basis of:
  • Sales by each department
  • Number of employees
  • Area occupied by each department
  • Purchases by each department
  • Rent and rates are allocated and apportioned to the different departments on the basis of:
  • Sale of each department
  • Number of employees
  • Purchase of each department
  • Area / Floor space occupied

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