Accountancy and Auditing Quiz No:2

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

A fixed budget is:

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

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

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

Which of the following does not describe accounting?

Up to what level Agriculture income is exempt from tax?

Dividends are usually paid on:

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

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:

Trial Balance is prepared from ledger

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

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

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

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

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

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:

In principle current assets are financed from:

Advance Payment of tax is in the nature of:

The role of finance function in the future will be:

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

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

Which of the following is true regarding the work sheet.

Working capital is the:

Wages paid for construction of a plant is revenue expenditure.

Marshalling of balance sheet means:

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

Interim audit is conducted for examining the account for:

The most acceptable method of measuring income is:

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?

The excess of purchase price over the net asset is:

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

A non-banking asset 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.

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

Premium on issue of shares can be used for:

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

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

Return on investment is computed:

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

Work Sheet is:

A master budget comprises

Income and expenditure account reveals

An auditor is liable under the following circumstances:

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

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

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

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

Heavy expenditure on advertisement of a new product is a:

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

Acid Test Ratio is calculated as under:

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

Direct costs are:

Sugar used in a sugarcane company is:

An auditor’s unqualified short form report:

The discount account is a:

Payment should be made preferably through

Rent of the premises constitutes variable expenses for cost allocation:

Conversion Cost is calculated as under:

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

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

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:

Depreciation on fixed assets is an example of:

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:

The purchase of machinery on account would

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

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

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

Pre incorporation profit is to be credited to:

The post-closing trial balance will:

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

Average relief is available on the following except:

Deferred cost is a:

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

All the direct expenses are charged to

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:

Subscriptions received in advance is:

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

Commission received in advance is to be considered as:

Book-keeping is mainly concerned with:

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

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

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

Times interest earned is a great interest for a banker

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:

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

Depreciation is a process of:

Work Sheet only presents Balance Sheet figures.

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:

Current Ratio can be calculated as under:

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

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

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?

There is no difference between Financial Report and Financial statement.

The auditor is required to report that Financial Statement are:

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

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

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