MAZOON COLLEGE ECONOMICS AND BUSINESS STUDIES DEPARTMENT AY 2021 2022, Semester 2 (spring) Intermediate Accounting 1 (Acc307) Student's Full Name: ID Number Major: Section: Marn/Evening Total Marks 40 Exam: ENDTERM Duration: 120 Minutes SECTION-A ITEMPT ALL OBJECTIVE QUESTIONS (20 X 0.5-10 Marks 1- The acquisition cost and other incidental costs involved in bringing the asset in working condition Incidental costs are freight, insurance, installation cost, repair cost, shipping charges etc a Residual value b. Balance sheet e. Total cost of Assets d. None of the above 2- Which type of expenses are paid out of trading account a Direct expenses b. Indirect expenses c. Both d. None of the above 3- From which of the following ledger account is prepared a. Transaction b. Journal c Trial Balance d. None of the above 4- Depreciation is calculated on a Market value b. Cost of assets c. Scrape value d. All the Above 5- Which is the example of business liability a Land b Building i c Creditors d Cash 6- A net profit is calculated from which of the following a Balance sheet b. Profit and loss account c Trading account d. Trial balance 7- External users are the persons other than internal users they are a Investor b. Manager c. Board of Director d. All the above