Accountancy and Auditing Quiz No:2

Evaluate positive or negative-concerning people, objects, or events are called:

Advance Payment of tax is in the nature of:

In general, the accounts in the income statement are known as:

Current Ratio can be calculated as under:

Which one of the following is not considered the permanent part of the accounting record:

Marshalling of balance sheet means:

The post-closing trial balance will:

An auditor’s unqualified short form report:

Ordinarily one can have the following partners in a partnership in Pakistan under the Partnership Act 1932

The provision for discount on creditors is often not provided in keeping with the principle of:

Depreciation is a process of:

Suspense Account is a clear account with no question to be asked.

Heavy expenditure on advertisement of a new product is a:

Subscriptions received in advance is:

State which of the following are characteristics of contract costing: (i) Homogeneous products (ii) Customer driven production (iii) Complete production possible within a single account period.

A and B are partners in the ratio of 2:1. They admit C for ¼ shares who contributes Rs. 3000 for his share of goodwill. The total value of the goodwill of the firm is:

Times interest earned is a great interest for a banker

Sugar used in a sugarcane company is:

The auditor is required to report that Financial Statement are:

Agricultural income is taxable under the Income Tax Laws of Pakistan:

Uzma Ltd. Net income was Rs. 4,00,000 in 2003 and Rs. 1,60,000,in 2004. What percentage increase in net income must achieve in 2005 to off set the decline in profits in 2004?

When preparing balance sheet of a company, Goodwill, Patents, Trade Mark and Designs come under the head of:

Special tax relief is granted to a senior citizen if his age is:

The most acceptable method of measuring income is:

The heat treatment department at Noori Pipe is the third department in a sequential process. The work in process account for the department would consist of:

What type of budget is designed to take into account forecast changes in cost, prices, etc.

Trial Balance is prepared from ledger

State which of the following are characteristics of job costing: (i) Homogeneous products (ii) Customer driven production (iii) Complete production possible within a single accounting period

The sake of a business asset on credit is recorded in:

Provision for taxation of a previous year was Rs. 100,000 and tax assessed for that year Rs. 80,000. This adjustment for this is:

Principal and markup payment within one year constitutes long term liability for disclosure in the balance sheet of a company.

When preparing a production budget, the quantity to be produced equals:

Conversion Cost is calculated as under:

A master budget comprises

The following extract is taken from the production cost budget of S. Ltd; Production (Units) 2,000 …… 3,000 Production Cost (Rs.) 11,100 …… 12,900 The budget cost allowance for an activity level of 4,000 units is:

Budgeted Profits are always high when pessimistic approach for preparing budget is followed

The excess of purchase price over the net asset is:

Loss on sale of an asset should be written off against:

The role of finance function in the future will be:

Return on investment is computed:

Acid Test Ratio is calculated as under:

Work Sheet only presents Balance Sheet figures.

Which of the following is least important as a measure of short term liquidity?

There is no difference between Financial Report and Financial statement.

Payment should be made preferably through

Error due to wrong allocation as expenditure between capital and revenue is regarded as:

In principle current assets are financed from:

Pre incorporation profit is to be credited to:

Dividends are usually paid on:

Income from Capital gains arising out of trading on a stock strange in Pakistan is taxable these days:

Calculating number of days uncollected of sales is known as Collection Index.

Rent of the premises constitutes variable expenses for cost allocation:

An auditor is liable under the following circumstances:

Values that express preferred behavior and the means by which one achieves his/her goals are known as:

Which of the following is true regarding the work sheet.

Interim audit is conducted for examining the account for:

A chemical process has normal wastage of 10% of input. In a period, 2500 kgs of material were input and there was an abnormal loss of 75 kgs. What quantity of good production was achieved?

Depreciation on fixed assets is an example of:

In comparison to the external auditor, an internal auditor is more likely to be concerned with:

Ledgers are prepared from vouches much before transactions are recorded in the Journal.

Deferred cost is a:

Amount set apart to meet losses due to bad debt is a:

Commission received in advance is to be considered as:

The purchase of machinery on account would

Those liabilities which arise only on the happening of some event, are called:

Sales to Mustafa of Rs. 10,000 not recorded in the books would affect:

The capital receipts are shown in the balance sheet on the:

Book-keeping is mainly concerned with:

Work Sheet is:

All the direct expenses are charged to

Costs in the beginning work in process inventory are added to the cost of the current period when making units cost calculations by:

External uses of financial accounting information include all of the following except:

A working paper which is prepared by the accountant for his own convenience is called:

Up to what level Agriculture income is exempt from tax?

Wages paid for construction of a plant is revenue expenditure.

If proper books of accounts are not kept in a business the amount of profit:

The term expenses and expenditure are:

A limited Co. sold marketable securities cost Rs. 80,000 for Rs. 92,000 cash. In Co.’s income statement and statement of cash flows respectively, this will appear as:

When debentures are issued at par and are redeemable at premium, credit given to premium on redemption of debentures account is in the nature of a:

The stage under which transactions are recorded chronologically in the books of accounts is called:

The best description of a by-product is a joint product which:

A fixed budget is:

The discount account is a:

The need for keeping a record of income and expenditure is a clear and systematic manner has given rise to the subject of:

The auditors are appointed by the following authorities:

Premium on issue of shares can be used for:

When goods are given away as charity or free samples, the purchases account should be:

Income and expenditure account reveals

A non-banking asset is:

Direct costs are:

Banks are governed under the Companies Ordinance, 1984 only for preparation of their financial statements

Working capital is the:

The cost of goods and services used up in the process of obtaining revenue are called:

Average relief is available on the following except:

At the time of admission of a new partner, goodwill raised should be written off in:

Which of the following does not describe accounting?

In general terms, financial assets appear in the balance sheet at:

Any expenditure incurred to increase the profit earning capacity of the concern is a:

Working Capital finance can be termed as “Running Finance” in a limited company

The payment side of the cash book is under cost by Rs. 200 when overdraft as per bank statement is the starting point: