MAA Sample QP
MAA Sample QP
MAA Sample QP
(a) Rs.1,00,000/-
(b) Rs.2,50,000/-
(c) Rs.1,50,000/-
(d) Rs.2,00,000/-
(e) None of the above
2. XYZ Pizza Limited has current assets worth Rs.6,00,000/-, current liabilities worth Rs.1,00,000/-,
zero long-term liabilities and shareholders equity totaling Rs.6,00,000/-. The total assets of the
company would be:-
(a) Rs.5,00,000/-
(b) Rs.8,00,000/-
(c) Rs.7,00,000/-
(d) Rs.7,50,000/-
(e) None of the above
3. When the total amount of a given expense does not change as the amount of activity changes, the
expense is classified as a:-
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4. If a person buys the assets of a company, the price that he would pay for the assets is their net book
values as shown in the balance sheet.
(a) True
(b) False
5. Which of the following are likely to have the reported amounts on the balance being close to their
current value?
6. The purpose of depreciation is to have the balance sheet report the current value of an asset.
(a) True
(b) False
7. Preference shares have preference over equity shares with regards to:-
8. There are several dates that are relevant when a company pays a dividend. Which date is irrelevant
when a company pays a dividend?
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10. The share premium account is a capital reserve and the profit and loss account is a revenue
reserve.
(a) True
(b) False
14. If a sole trader purchases Furniture for Rs.50,000/- for business use, paying by cheque, when
completing his double entry accounts he will:-
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15. Assets of Rs.90,000/-, current assets of Rs.22,000/-, current liabilities of Rs.15,000/- and a long-term
loan of Rs.18,000/-, owners equity will be:-
(a) Rs.79,000/-
(b) Rs.80,000/-
(c) Rs.77,000/-
(d) Rs.78,000/-
(e) None of the above
16. If sales are Rs.1,80,000/-, cost of sales is Rs.1,55,000/-, selling expenses are Rs.20,000/- and
administration expenses are Rs.6,000/-, the net results will be:-
18. The amount a sole proprietorship gives to its owner for the owner's personal consumption is
recorded as a credit to cash and a debit to the owner's:-
19. The depreciation method that causes equal amounts of annual depreciation expense for a given
asset is the:-
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20. Management accounting information is irrelevant to the:-
21. If a company sells some of the equipment that had been used in its operations and the company
receives more than the book value of the equipment, the company will report a Gain on its income
statement.
(a) True
(b) False
22. Assets are usually reported on the balance sheet at which amount?
(a) Cost
(b) Current Market Value
(c) Expected Selling Price
(d) All of the above
(e) None of the above
24. If a share is sold by a company for Rs.4.37/- and its nominal value is Re.1/-, the difference of
Rs.3.37/- is known as a share premium.
(a) True
(b) False
25. The word to describe the systematic allocation of the cost of a plant asset from the balance sheet to
an expense on the income statement is appreciation.
(a) True
(b) False
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26. Unearned Revenues or Customer Deposits are generally listed as a Current Liability on a classified
balance sheet.
(a) True
(b) False
27. Which financial statement has a heading that does NOT specify a period of time?
28. If a companys inventory of direct materials is carried at standard cost, it is not likely that the direct
materials price variance is recognized at the time of purchase.
(a) True
(b) False
30. Deferred credits will appear on the balance sheet with the:-
(a) a) Assets
(b) b) Liabilities
(c) c) Owners equity
(d) d) Both (a) and (b)
(e) e) None of the above
(a) Gains
(b) Expenses
(c) Losses
(d) Liabilities
(e) None of the above
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32. Which of the following would not be a current asset?
(a) Debtors
(b) Land
(c) Accounts Receivable
(d) Prepaid insurance
(e) None of the above
(a) True
(b) False
34. The short-term solvency ratios examine how quickly a firm's assets can be converted into cash. The
quick ratio is computed by what formula?
36. A corporation's excellent reputation will be listed among the corporation's assets on its balance
sheet.
(a) True
(b) False
37. Which of the following costs are generally allowed to be included in the computation of the cost of a
plant and machinery?
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38. If a trail balance extracted from the double entry system of a sole trader shows that total debits
equals total credits then it reveals that:-
39. The debt ratio indicates how much debt is used to finance a firm's assets and provides an indication
of how a firm is financed. What is the formula for calculating the debt ratio?
1. What is the difference between accounts payable and accounts receivable? What is the main
purpose of a journal and ledger process in maintaining the accounting records?
2. There is always an independent authority verifying a company's account namely the external auditor
for every company. In such a scenario why should there be a regulator for monitoring of public
offerings from capital markets? Discuss.
4. A cash flow statement can be more useful than a fund flow statement. Discuss.
5. A highly profitable firm can have a bad cash flow statement. Discuss.
6. Discuss the utility of ratios from various stakeholders' perspectives. Also identify the three key
financial ratios from each stakeholder's perspective.
7. What are the significant assumptions we make while comparing financial ratios of various companies
in the same industries? Discuss the implications of the above assumptions for a user of financial
ratios.
8. What is a difference between the straight-line method of depreciation and the written down value
method? Which method is more appropriate for reporting earnings?
9. What is the method of valuation of shares acquiring by way of a rights issue and a bonus issue?
10. Take up any four accounting standards and mention the accounting principles behind them.
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