Financial Accounting II (MGT401) Assignment 02

Fall Semester 2007

Instructions:

Please read the following instructions carefully before attempting the

assignment solution.

1. Use a 12-point font in Times New Roman.

2. Show working where necessary.
3. This Assignment covers Lecture 01 to Lecture 17 of your course.
4. Total marks for the assignment is 20.
5. Due date for the submission of Assignment is, November 10,
2007.
6. Upload your assignment with in due date and time. No assignment will be
accepted after the due date and time.
7. Be very careful while uploading your assignment, as no assignment will be
replaced after it was uploaded on VULMS.
8. No credit will be given to copied assignments.

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Financial Accounting II (MGT401) Assignment 02
Fall Semester 2007

Highlight the correct options:

1. Companies are dissolved by which one of the following method?

a. Liquidation
b. Winding up
c. Both liquidation and winding up
d. None of the given options

2. ____________of the Companies Ordinance 1984 sates that any three or

more persons associated for any lawful purpose may, by subscribing their
names to a memorandum of association, form a public company and any
one or more persons so associated may in like manner form a private
company.

a. Section 15
b. Section 15 sub section 1
c. Section 16
d. Section 16 sub section 1

3. Significance influence on one company can be represented by which of the

following mode?

a. Representation of board of directors

b. Inter change of managerial personnel
c. Material transaction
d. All of the given options

4. A truck that cost Rs. 24,000 and was expected to last for 4 years was
scrapped after 3 years. If the truck was being depreciated on a straight-line
basis (with no salvage value), the loss recognized on disposal would be:

a. Rs. 24,000
b. Rs. 18,000
c. Rs. 12,000
d. Rs. 6,000

5. Which of the following is NOT a long-term operating asset?

a. Delivery truck
b. Inventory
c. Plant
d. Franchise

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Financial Accounting II (MGT401) Assignment 02
Fall Semester 2007
(1X5 = 5)

Match Column A with Column B and write the correct option in

column C:
(1X5 = 5)

Column A Column B Column C

Joint Venture Financial Instruments
Disclosure
IAS 32 Preliminary expenses

Borrowing Costs Disclosure IAS 11

Deferred Costs Contractual Agreement

Work in progress under IAS 23

construction contracts

Fill in the blanks with appropriate words:

(1X5 = 5)

1. The revaluation was carried out by independent valuer on the basis of

___________ in case of land and _______ cost in case of building.

2. __________ are usually received on bulk purchase and are agreed at the
time of negotiation of cost. The cost of inventory is recorded net of these
discounts.

3. As per the _______ an investor is presumed to have a significant influence

over the investee if the investor controls _________ voting power in the
investee.

4. Under the cost method the investment in Investee Company is recorded at

_________ .

5. The ___________ of IAS 16 is to carry property plant and equipment at

Cost less Accumulated Depreciation and any Accumulated Impairment
Losses.

Briefly answer the followings:

1. Why Non profit Organizations are called as NPO’s?

2. State the changes which cause disclosure requirements for Intangible Assets
under IAS 38?
(2.5X2 = 5)