MauryaHub PYQ Practice

ms4003_2023T1_Q1_NA.pdf

Financial Forensics · Quiz 1 · Jan 2023

← Course papers · Start practice / exam

Questions and published explanations below are available without starting a test. Some questions may not have a published solution yet.

Question 174 MCQ · 1.0 marks

All of the following are property, plant, and equipment except:
  1. Supplies
  2. Machinery
  3. Land
  4. Buildings

A published solution is not available for this question yet.

Question 175 MCQ · 1.0 marks

A current asset is:
  1. The last asset purchased by a business.
  2. An asset which is currently being used to produce a product or service.
  3. Usually found as a separate classification in the income statement.
  4. An asset that a company expects to convert to cash or use up within one year.

A published solution is not available for this question yet.

Question 176 MCQ · 1.0 marks

An intangible asset:
  1. Does not have physical substance, yet often is very valuable.
  2. Is worthless because it has no physical substance.
  3. Is converted into a tangible asset during the operating cycle.
  4. Cannot be classified on the balance sheet because it lacks physical substance.

A published solution is not available for this question yet.

Question 177 MCQ · 1.0 marks

Liabilities are generally classified on a balance sheet as:
  1. Small liabilities and large liabilities.
  2. Present liabilities and future liabilities.
  3. Tangible liabilities and intangible liabilities.
  4. Current liabilities and long-term liabilities.

A published solution is not available for this question yet.

Question 178 MCQ · 1.0 marks

Which of the following would not be classified as a long-term liability?
  1. Current maturities of long-term debt
  2. Bonds payable
  3. Mortgage payable
  4. Lease liabilities

A published solution is not available for this question yet.

Question 179 MCQ · 1.0 marks

An owner of a business contributes ₹ 20,00,000 as capital. 30% of the amount was brought in cash and the remaining was kept in a bank account in the name of the business. What would be the total of assets in the Balance sheet?
  1. ₹ 10,00000
  2. ₹ 6,00000
  3. ₹ 14,00,000
  4. ₹ 20,00,000

A published solution is not available for this question yet.

Question 180 MCQ · 1.0 marks

At the beginning of the month the company hired workers and employees for a total monthly remuneration of ₹ 65,000 payable at the end of each month. How would this transaction reflect in the income statement and balance sheet at the beginning of the month?
  1. Expense will increase by ₹ 65,000 and liabilities will also increase by equal amount
  2. Expense will increase by ₹ 65000 and cash will decrease by the equal amount
  3. There will be no effect on both the statements
  4. Only expenses will increase by ₹ 65000

A published solution is not available for this question yet.

Question 181 MCQ · 1.0 marks

A company purchased machinery worth ₹ 7,50,000 on January 2\(^{nd}\) from a vendor. The vendor offered a credit period of 50 days to the company and the same was exercised. What will be the effect in the income statement and balance sheet of the company on January 2\(^{nd}\)?
  1. Asset will increase by ₹ 7,50,000 and liability will also increase by ₹ 7,50,000
  2. There will no entry in the books of accounts till the amount is paid
  3. Asset will increase by ₹ 7,50,000 and cash will decrease by ₹ 7,50,000
  4. Only liability will increase by ₹ 7,50,000

A published solution is not available for this question yet.

Question 182 MCQ · 1.0 marks

A company purchased goods worth ₹ 3,40,000 from a supplier and the payment was made immediately through a cheque. What will be the effect in the income statement and balance sheet on the date of purchase ?
  1. Expenses will increase by ₹ 3,40,000 and bank balance will reduce by ₹ 3,40,000
  2. Assets will increase by ₹ 3,40,000 and liability will increase by ₹ 3,40,000
  3. Expenses will increase by ₹ 3,40,000 and liability will increase by ₹ 3,40,000
  4. Assets will increase by ₹ 3,40,000 and bank balance will reduce by ₹ 3,40,000

A published solution is not available for this question yet.

Question 183 MCQ · 1.0 marks

XYZ Inc. purchased a fire insurance policy for an annual premium of ₹ 6,000 towards protection of goods up to ₹ 30,00,000. The entire amount was paid in cash immediately. How will this transaction be reflected in the balance sheet and income statement of XYZ Inc. on the date of purchase of fire insurance policy?
  1. ₹ 30,00,000 will be treated as receivables and ₹ 6000 will be accounted as expenses
  2. Bank balance will reduce by ₹ 6000 and expenses will increase by ₹ 6000
  3. Expenses will increase by ₹ 6000 and assets will increase by ₹ 6000
  4. Bank balance will reduce by ₹ 6,000 and assets will increase by ₹ 6,000

A published solution is not available for this question yet.

Question 184 MCQ · 1.0 marks

Sold goods worth ₹ 86,000 for ₹ 98,000. A cash discount of 10% was offered to the customer if payment is settled immediately. The customer took advantage of the offer and transferred the amount immediately through internet banking. What will be the value of the sale?
  1. ₹ 86, 000
  2. ₹ 98, 000
  3. ₹ 77, 400
  4. ₹ 88, 200

A published solution is not available for this question yet.

Question 185 MCQ · 1.0 marks

A firm procured furniture with a useful life of three years for ₹ 75,000 for business purposes. The payments were made in cash. The amount spent on furniture will be treated as
  1. Asset
  2. Liability
  3. Expenses
  4. Income

A published solution is not available for this question yet.

Question 186 MCQ · 1.0 marks

Goods worth ₹ 1,20,000 sold to Mr. Steve at a mark-up of ₹ 45,000. Steve made half of the payment immediately in cash and requested for 45 days of time to repay the remaining amount. How will transaction reflect in the income statement and balance sheet on the date of sale?
  1. Revenue will increase by ₹ 1,65,000 and expenditure will increase ₹ 1,20,000.
  2. Revenue will increase by ₹ 1,65,000, expenditure will increase by ₹ 1,20,000 and Cash/bank will increase by ₹ 82,500
  3. Revenue will increase by ₹ 1,65,000; expenditure will increase by ₹ 1,20,000, Cash/bank will increase by ₹ 82,500 and receivables will increase by ₹ 82,500
  4. Revenue will increase by ₹ 1,65,000, expenditure will increase by ₹ 1,20,000, Cash/bank will increase by ₹ 82,500, receivables will increase by ₹ 82,500, and stock will decrease by ₹ 1,20,000

A published solution is not available for this question yet.

Question 187 MCQ · 1.0 marks

Office stationeries procured for ₹ 17,800 and the payment was made through bank. The purchase of office stationaries will be treated as an _________
  1. Asset
  2. Liability
  3. Expenses
  4. Income

A published solution is not available for this question yet.

Question 188 MCQ · 1.0 marks

Mr. Steve purchased goods amounting to ₹ 1,00,000 from ABC Inc. Two days later Mr. Steve discovered that goods of ₹ 40,000 (Cost ₹ 35,000) was bought in excess. He returned the goods immediately and the same was considered worthy for resale by ABC Inc. upon evaluation. In the books of ABC Inc., this transaction will be treated as ____
  1. Purchase returns with value of ₹ 35,000
  2. Sales returns with value of ₹ 35,000
  3. Sales returns with value of ₹ 40,000
  4. Purchase returns with value of ₹40,000

A published solution is not available for this question yet.

Question 189 MCQ · 1.0 marks

An amount ₹1,00,000 was withdrawn from bank to finance working capital requirement of the business. The transaction will lead to
  1. Increase in expenditure
  2. Increase in asset
  3. No effect on the balance sheet total
  4. Increase in liability

A published solution is not available for this question yet.

Question 190 MCQ · 1.0 marks

Goods costing ₹1,00,000 sold to Mr. Erwin for ₹ 1,55,000. Sales proceeds were realized in full. The value entered as cost of goods sold in the income statement would be
  1. ₹ 1,55,000
  2. ₹ 1,00,000
  3. ₹ 55,000
  4. ₹ 2,55,000

A published solution is not available for this question yet.

Question 191 MCQ · 1.0 marks

An amount of ₹ 2,50,000 was spent towards advertisement and sales promotion activities. The payment was made through cheque. The amount was decided to be amortized over a period of 5 years. What would be the amortization expense for the first year and the unamortized amount in the balance sheet at the end of the first year
  1. Amortized amount ₹ 2,00,000 and unamortized amount ₹ 50,000
  2. Amortized amount ₹ 50,000 and unamortized amount ₹ 2,00,000
  3. Amortized amount ₹ 1,00,000 and unamortized amount ₹ 1,50,000
  4. Amortized amount ₹ 100,000 and unamortized amount ₹ 50,000

A published solution is not available for this question yet.

Question 192 MCQ · 1.0 marks

Business took a loan of ₹ 5,00,000 from XYZ Bank. The transaction will result in
  1. Increase in Asset and liability
  2. Increase in Liability and decrease in asset
  3. Increase in revenue and asset
  4. Increase in expenditure and asset

A published solution is not available for this question yet.

Question 193 MCQ · 1.0 marks

Goods costing ₹ 19,000 was taken by the owner from business for personal use. The value of the goods taken by the owner will be treated as __________ in the books of the company
  1. Expenses
  2. Income
  3. Liability of the company
  4. Drawings by the owner

A published solution is not available for this question yet.

Question 194 MCQ · 1.0 marks

Total salaries accrued for the month is ₹ 65,000, but only 50% of it was paid at the end of the month and the rest was outstanding. The expenses on salaries in the income statement for the month is
  1. ₹ 32,500
  2. ₹ 65,000
  3. ₹ 16,250
  4. Not an expense till the full amount is paid

A published solution is not available for this question yet.

Question 195 MCQ · 1.0 marks

**Based on the information from the following table, answer the given subquestions.** Alpha Corporation is a manufacturer of furniture. In a recent year, it reported the following activities. Please note that the figures in the parenthesis indicates negative values. [[IMAGE:470588e7be75702a_12_1]]
What is the cash flow from operating activities?
Source diagram or notation
  1. ₹ 37,164
  2. ₹ 42,299
  3. ₹ (42,299)
  4. ₹ (37,164)

A published solution is not available for this question yet.

Question 196 MCQ · 1.0 marks

**Based on the information from the following table, answer the given subquestions.** Alpha Corporation is a manufacturer of furniture. In a recent year, it reported the following activities. Please note that the figures in the parenthesis indicates negative values. [[IMAGE:470588e7be75702a_12_1]]
What is the cash flow from financing activities
Source diagram or notation
  1. ₹ 1,128
  2. ₹ 1082
  3. ₹ (805)
  4. ₹ 715

A published solution is not available for this question yet.

Question 197 MCQ · 1.0 marks

**Based on the information from the following table, answer the given subquestions.** Alpha Corporation is a manufacturer of furniture. In a recent year, it reported the following activities. Please note that the figures in the parenthesis indicates negative values. [[IMAGE:470588e7be75702a_12_1]]
What is the cash flow from investing activities
Source diagram or notation
  1. ₹ 7,113
  2. ₹ 6,042
  3. ₹ 6,261
  4. ₹ 852

A published solution is not available for this question yet.

Question 198 MCQ · 1.0 marks

**Based on the information from the following table, answer the given subquestions.** Alpha Corporation is a manufacturer of furniture. In a recent year, it reported the following activities. Please note that the figures in the parenthesis indicates negative values. [[IMAGE:470588e7be75702a_12_1]]
What is the total cash flow of the company at the end of the year
Source diagram or notation
  1. ₹ 43,866
  2. ₹ 51,194
  3. ₹ (34,910)
  4. ₹ 43,921       **Data Viz** **Section Id :** 64065330382 **Section Number :** 11 **Section type :** Online **Mandatory or Optional :** Mandatory **Number of Questions :** 9 **Number of Questions to be attempted :** 9 **Section Marks :** 100 **Display Number Panel :** Yes **Group All Questions :** No **Enable Mark as Answered Mark for Review and** Yes **Clear Response :** **Maximum Instruction Time :** 0

A published solution is not available for this question yet.