All India Management Association (AIMA) 2007 M.B.A Marketing Management Accounting for ision Making – I - Question Paper
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ques. Paper
Accounting for Decision Making – I (MB2D1): October 2007
• Answer all 70 ques..
• Marks are indicated against every ques..
Total Marks : 100
1. Which of the subsequent transactions outcomes in an increase in the owners’ equity?
(a) Sale of fixed assets at book value
(b) Earning revenue income
(c) Borrowing additional loans
(d) Sale of investments at book value
(e) Purchase of fixed assets.
( 1 mark)
2. Which of the subsequent accounting concepts is applicable to determine the profits or losses accrued?
(a) Money measurement concept
(b) Materiality concept
(c) Business entity concept
(d) Conservatism concept
(e) Matching concept.
( 1 mark)
3. Duality concept states that
(a) The total assets is equal to the sum of owners’ equity and outside liabilities
(b) The outside liabilities is equal to the sum of owners’ equity and the total assets
(c) The owners’ equity is equal to the sum of total assets and outside liabilities
(d) The total assets is equal to the sum of current assets and owners’ equity
(e) The owners’ equity is equal to the sum of total current assets and total current liabilities.
( 1 mark)
4. Assets are to be recorded in the books of accounts at the price paid to acquire them. This statement is in recognition of
(a) Cost concept
(b) Going concern concept
(c) Conservatism concept
(d) Business entity concept
(e) Consistency concept.
( 1 mark)
5. Depreciation is allocated over the effective life of an asset according to
(a) Conservatism concept
(b) Going concern concept
(c) Matching concept
(d) Time period concept
(e) Business entity concept.
( 1 mark)
6. Contingent liabilities appearing as notes to balance sheet reiterate
(a) Conservatism concept
(b) Realization concept
(c) Concept of full disclosure
(d) Time period concept
(e) Consistency concept.
( 1 mark)
7. The capital of Ram Ltd., is Rs.7,00,000. The outside liabilities of the company are Rs.50,000. If the total of assets are Rs.8,25,000, then the reserves & surplus of Ram Ltd., are
(a) Rs.1,25,000
(b) Rs.1,75,000
(c) Rs. 75,000
(d) Rs. 50,000
(e) Rs. 25,000.
( 2 marks)
8. Which of the subsequent accounting concepts presume that a business will carry on its operations for an indefinite period?
(a) Business entity
(b) Going concern
(c) Periodicity
(d) Duality
(e) Consistency.
( 1 mark)
9. According to the requirement of US GAAP compliance for Indian Corporate, an Indian company, if it is incorporated under the laws of a jurisdiction outside of the United States, is called as
(a) Foreign Private Issuer
(b) Foreign Investor
(c) Foreign Incorporator
(d) Foreign Institutor
(e) Foreign Capitalist.
( 1 mark)
| Earning: Approval pending. |
