accountiing mcqs

105
Solved MCQs of Accounting & Auditing Past Papers Accounting & Auditing Paper -I (2000) (1) Double entry book-keeping was fathered by: (a) F.W.Taylor (b) Henry Fayol (c) Lucas Pacioli. (2) Funds Flow Statement and sources and application statement are:’ (a) Synonymous (b) Antagonistic (c) None of these. (3) Depreciation in spirit is similar to: (a) Depletion (b) Amortization (c) Depression. 4) Balance Sheet is always prepared: (a) for the year ended. (b) As on a specified date. (c) None of these. (5) In Insurance, the following Profit and Loss Accounts are prepared: (a) Separate for Fire, Marine, and Accidents etc. (b) Consolidated for Fire, Marine, and Accidents etc.(c) None of these. (6) Partners in Pakistan can today be fixed at the following numbers: (a) 20 (b) 50 (c) 75. (7) Flexible budget is a budget with the following

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Page 1: accountiing MCQS

 

Solved MCQs of Accounting & Auditing Past Papers

Accounting & Auditing Paper -I (2000)

(1) Double entry book-keeping was fathered by:(a) F.W.Taylor (b) Henry Fayol (c) Lucas Pacioli.

(2) Funds Flow Statement and sources and application statement are:’(a) Synonymous (b) Antagonistic (c) None of these.

(3) Depreciation in spirit is similar to:(a) Depletion (b) Amortization (c) Depression.

4) Balance Sheet is always prepared:(a) for the year ended. (b) As on a specified date. (c) None of these.

(5) In Insurance, the following Profit and Loss Accounts are prepared:(a) Separate for Fire, Marine, and Accidents etc.(b) Consolidated for Fire, Marine, and Accidents etc.(c) None of these.

(6) Partners in Pakistan can today be fixed at the following numbers:(a) 20 (b) 50 (c) 75.

(7) Flexible budget is a budget with the following features:(a) Changes with volume of production.(b) Changes with variable expenses(c) Changes in Direct material.

(8) Break Even can be calculated as under:(a) ______VC_______FC- TR TC(b) FC I- VC TR(c) None of these.

(9) Quick Ratio can be computed as under:

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(a) Quick . Assets/Quick Liabilities(b) Quick . Liabilities Current Assets(c) Current Assets/ Current Liabilities

(10) In straight line method of depreciation, the written down value of a fixed asset will be at the end of the life of the asset as under:(a) Rupee one (b) Rupee zero (c) None of these.

(11) Sales budget must be prepared:(a) Independently (b) Depending on production capacity (c) Based on Sales forecasts of market.

(12) Consolidation of subsidiary accounts in the balance sheet of a unlisted Holding company is at present in Pakistan:(a) Compulsory (b) Voluntary (c) Required.

(13) Retained earning is synonymous to:(a) Accumulated profit and loss account(b) Profit for the year(c) None of these.

(14) The requirements of an audit report for a Banking Company in Pakistan is under:(a) Under the Banking Companies Ordinance, 1962.(b) Under the Companies Ordinance, 1984.(c) Under (a) and (b) above.

(15) Deferred Taxation is:(a) Fixed asset(b) Fixed liabilities(c) Part of Owners Equity.

(16) Investment Corporation of Pakistan follows:(a) Open-end mutual funds (b) Closed-end mutual funds (c) None of these.

(17) Directors Report is ---- in respect of financial report constituent.(a) Mandatory for a limited Company(b) Voluntary for a limited Company(c) None of these.

(18) Every limited Company in Pakistan is required by law to include the following

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along with financial reports:(a) Ratio Analysis(b) Chairman’s Review(c) None of these.

(19) Cash budget excludes the following:(a) Non-Cash items(b) Cash items(c) Purchase on Credit items.

(20) NGOs are legally required to:(a) Prepare accounts in a prescribed manner under the law.(b) Prepare accounts as desired by donors.(c) None of these.

Accounting & Auditing Paper -II (2000)

1. Fixed Cost:a. Changes with productionb. Never changes even if production capacity is doubledc. None of the above

2. Conversion cost is:a. Material Cost + Overhead Costb. Direct Labour + Material Costc. Labour Cost + Overhead Cost

3. Process Costing is relevant to:a. Cement industryb. Job Order cost oriented Projectsc. None of the above

4. Operating Profit is:a. Profit after deducting financial costsb. Profit after deducting taxesc. Profit after deducting normal operating expenses including depreciation

5. A good Cost Accounting System is:a. If it computes estimated cost onlyb. If it cannot be reconciled with financial accountsc. If it enables management to increase productivity and rationalize cost structure

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6. Verification includes:a. Checking Vouchersb. Examining audit reportc. None of the above

7. Stratified audit sample means:a. Randomly selected items for auditb. Purposively selected items for auditc. Items carefully selected from each group

8. Internal Control is totally synonymous with:a. Internal checkb. Internal auditc. None of above

9. Audit of a bank is generally conducted through:a. Routine checkingb. Couchingc. Balance sheet audit

10. An auditor is liable for his annual audit of accounts o:a. Creditorsb. Bankersc. Owners

11. Income Tax is levied on:a. Agricultural Incomeb. Presumptive Incomec. None of above

12. If a firm has paid super-tax, its partners may follow any one of the following behaviours:a. No need to pay income tax, even if the income exceeds the taxable limit.b. Pay income tax, even if the income does not exceed the taxable income.c. Pay income tax as required under the law.

13. A resident multinational company need not:a. Pay income tax, if it s caused under Double Taxation agreement.b. If it is not enjoying tax exemption under the Income Tax Ordinance, 1979 (Second Schedule).c. None of above

14. Income Tax rates are the same for:a. Limited Companiesb. Banking Companiesc. None of above

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15. Super Tax on companies is:a. In vogue in Pakistanb. Not in vogue in Pakistanc. None of above

16. Current Ratio is calculated as:a. Fixed Assets/Current Liabilitiesb. Current Liabilities/Current Assetsc. Current Assets/Current Liabilities

17. Short-term loan can be described as:a. If the period is three yearsb. If the period is less than one yearc. If the period is over one year

18. A partnership, in today’s Pakistan, under the current law can have the following number of partners:a. 50b. 20c. 100

19. Combination can be best described as:a. Restructuring of Capital of a Companyb. Reduction of Capital of a Companyc. Amalgamation of two different types of businesses

20. Sources of funds can be increased by:a. Describing selling pricesb. Increasing expenditurec. None of above

Last edited by marwatone; Wednesday, January 04, 2012 at 11:02 AM. Reason: Corrcetions.

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  #2   Monday, January 02, 2012

xaara~hussain Senior Member

  Join Date: Oct 2005Location: IslamabadPosts: 778 Thanks: 710

Page 6: accountiing MCQS

Thanked 810 Times in 373 Posts

do correct the mistakes fellas, if any.

Accounting & Auditing paper-I (2001)

Write only the correct answer in the Answer Book. Do not reproduce the questions.

(1) Books of original entry are called:(a) Ledger (b) Work sheets(c) Journal(d) None of these

(2) For preparing balance sheets prepaid expenses are shown as part of:(a) Liability(b) Equities(c) Assets(d) None of these

(3) Unpaid and unrecorded expenses are called:(a) Prepaid expenses(b) Accrued expenses(c) Additional expenses(d) None of these

(4) Amount, cash, or other assets removed from business by owner is:(a) Capital(b) Drawings(c) Assets(d) None of these

(5) Under the diminishing balance method, depreciation amount is:(a) Payment(b) Receipt(c) Expenditure(d) None of these

(6) Users of accounting information include:(a) The tax authorities(b) Investors(c) Creditors(d) All of these

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(7) The business form(s) in which the owner(s) is (are) personally liable is (are) the:(a) Partnership only(b) Proprietorship(c) Corporation only(d) Partnership and proprietorship (e) None of these

(8) The investment of personal assets by the owner:(a) Increases total assets and increases owner’s equity(b) Increases total assets only(c) Has no effect on assets but increases owner’s equity(d) Increase assets and liabilities(e) None of these

(9) All of the following are forms of organizations except:(a) Proprietorship(b) Corporation(c) Retailer(d) Partnership(e) None of these

(10) Economic resources of a business that are expected to be of benefit in the future are referred to as:(a) Liabilities(b) Owner’s equity(c) Withdrawals(d) Assets(e) None of these

(11) An owner investment of land into the business would:(a) Decrease withdrawals(b) Increase liabilities (c) Increase owner’s equity(d) Decrease assets(e) None of these

(12) A cash purchase of supplies would:(a) Decrease owner’s equity(b) Increase liabilities (c) Have no effect on total assets(d) None of these

(13) An owner investment of each into the business would:(a) Increase assets(b) Decrease liabilities(c) Increase withdrawals

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(d) Decrease owner’s equity(e) None of these

(14) The payment of rent each month for office space would:(a) Decrease total assets(b) Increase liabilities(c) Increase owner’s equity(d) None of these

(15) Real accounts are related to:(a) Assets(b) Expenses and incomes(c) Customers and Creditors etc.(d) None of these

(16) Which one of the following accounts would usually have a debit balance?(a) Cash(b) Creditors(c) Accounts payable(d) Salaries Expenses(e) None of these

(17) Quick assets include which of the following?(a) Cash(b) Accounts Receivable(c) Inventories(d) Only (a) and (b)(e) None of these

(18) Net income plus operating expenses is equal to:(a) Net sales(b) Cost of goods available for sale(c) Cost of goods sold(d) Gross profit(e) None of these

(19) The maximum number of partners in Pakistan can be fixed at the following:(a) 20(b) 50(c) 75(d) None of these

(20) Balance sheet is always prepared:(a) For the year ended(b) As on a specific date

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(c) None of these

Accounting & Audting Paper-II (2001)

Write only the correct answer in the Answer Book. Do not reproduce the questions.

(1) The measureable value of an alternative use of resources is referred to as:(a) An opportunity cost(b) An imputed cost(c) A different cost(d) A sunk cost(e) None of these

(2) A quantitative expression of management objectives is an:(a) Organizational chart(b)Management chart(c) Budget(d) Procedural chart(e) None of these

(3) A cost center is:(a) A unit of production in relation to which costs are ascertained(b) A location which is responsible for controlling direct costs(c) Part of the factory overhead system by which costs are gathered(d) Any location or department which incurs cost(e) None of these

(4) At break-even point of 400 units sold the variable costs were Rs. 400 and the fixed costs were Rs.200. What will be the 401 units sold contributing to profit before income tax?(a) Rs. 0.00(b) Rs. 0.50(c) Rs. 1.00(d) Rs. 1.50(e) None of these

(5) In considering a special order situation that will enable a company to make use of currently idle capacity, which of the following cost will be irrelevant:(a) Materials(b) Depreciation(c) Direct labour(d) Variable factory overhead(e) None of these

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(6) A fixed cost:(a) May change in total when such change is not related to changes in production(b) Will not change in total because it is not related to changes in production(c) Is constant per unit for each unit of change in production(d) May change in total, depending on production with the relevant range(e) None of these

(7) Completion of a job is result in:(a) DR finished goods …….. CR WIP(b) DR Cost of goods ……... CR finished goods(c) DR WIP ……………..….….. CR FOH control(d) DR FOH control …….….. CR FOH applied(e) None of these

(8) Operating cost in often named as:(a) Manufacturing cost plus commercial expenses(b) Prime cost plus factory overheads(c) Direct material plus direct labour(d) Selling plus administrative expenses(e) None of these

(9) Expenses such as rent and depreciation of a building are shared by several departments these are:(a) Indirect expenses(b) Direct expenses(c) Joint expenses(d) All of the above(e) None of these

(10) If under applied FOH is closed to cost of goods sold, the journal entry is:(a) DR Cost of goods sold …….. CR FOH control(b) DR FOH control ……..……….. CR Cost of goods sold(c) DR FOH control ……..……….. CR Profit % loss account(d) None of these

(11) Re-order quantity …… 3600 unitsMaximum consumption ...… 900 units per weekMinimum comsumption …....300 units per weekRe-order period …………….….5 weeksBased on this data Re-order level is:(a) 4500 units(b) 3900 units(c) 1200 units(d) 400 units(e) None of these

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(12) The time lag between indenting and receiving material is called:(a) Lead time(b) Idle time(c) Stock out time(d) None of these

(13) A credit balance remaining in FOH Control account is called:(a) Over-applied overhead(b) Under-applied overhead(c) Actual overhead(d) None of these

(14) Direct material cost plus direct labour cost is called:(a) Prime cost(b) Conversion cost(c) Product cost(d) All of these(e) None of these

(15) Productivity means:(a) The ability to produce(b) All units produced(c) Good units produced(d) None of these

(16) A segment of the business that generates both revenue and cost is called:(a) Profit Center(b) Cost Center(c) Cost driver(d) All of these(e) None of these

(17) Verification includes:(a) Checking vouchers(b) Examining audit report(c) None of these

(18) Audit of a bank is generally conducted through:(a) Routine checking(b) Vouching(c) Balance sheet audit(d) None of these

(19) Economics resources of a business that are expected to be of benefit in the future are referred to as:(a) Liabilities

Page 12: accountiing MCQS

(b) Owner’s equity(c) Withdrawals(d) Assets(e) None of these

(20) Short term Loan can be best described as:(a) If the period is three years(b) If the period is less than one year(c) If the period is over one year(d) None of these

Last edited by marwatone; Wednesday, January 04, 2012 at 11:00 AM. Reason: Corrections.

The Following 4 Users Say Thank You to xaara~hussain For This Useful Post:

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  #3   Tuesday, January 03, 2012

xaara~hussain Senior Member

 

Join Date: Oct 2005Location: IslamabadPosts: 778 Thanks: 710Thanked 810 Times in 373 Posts

Accounting & Auditing Paper-I (2002)

(1) Maximum number of partners in a partnership firm set up in Pakistan under Partnership Act, 1932 is:(a) 5(b) 25(c) 20(d) None of these

(2) Preparation of final financial reports is governed in Pakistan under:(a) No law(b) Companies Ordinance 1984(c) None of these

(3) Depreciation is based on:

Page 13: accountiing MCQS

(a) Economic life of asset(b) Declared life of asset by supplier(c) Normal life of asset(d) None of these

(4) Inventory turnover is calculated as under:(a) Cost of Goods sold/Closing Inventory(b) Gross profit/Closing Inventory(c) Sales/Opening Inventory(d) None of these

(5) There is a difference between:(a) Worksheet and Balance Sheet(b) Worksheet and profit and loss account (c) Worksheet as combination of results of profits and financial positions(d) None of these

(6) Deferred Revenue is:(a) Liability(b) Asset(c) None of these

(7) Preparation of annual report of a firm is governed under:(a) Partnership Act 1932(b) Under partnership Deed(c) None of these

(8) Deferred Taxation amount be treated as:(a) Foot note(b) An item in the Balance Sheet on asset side(c) None of these

(9) Return of Equity will be calculated as under:(a) Operating Profit x 100/Equity(b) Net profit x 100/Paid up Capital only(c) None of these

(10) Current maturity of long term loan is:(a) Current Liability(b) Long Term Liability(c) None of these

Accounting & Auditing Paper-II (2002)

Page 14: accountiing MCQS

Write only the correct answer in the Answer Book. Do not reproduce the questions.

(1) Prime cost is calculated as under:(a) Manufacturing Cost/Cost of Goods Sold(b) Direct Method plus factory overheads(c) Direct labour + Direct Material(d) None of these

(2) Process Cost is very much applicable in:(a) Construction Industry(b) Pharmaceutical Industry(c) Air line company(d) None of these

(3) The latest computation of variances of manufacturing overheads is in one the following ways:(a) Two variance approaches(b) Three variance approaches(c) Four variance approaches(d) None of these

(4) Random sampling in auditing means:(a) Selection through convenience sampling(b) Selection through scientific sampling approach(c) None of these

(5) Expenditure incurred in procuring machinery is:(a) An admissible expenditure for tax purposes(b) No admissible for tax purposes(c) None of these

(6) Increase in income constitutes:(a) Inflows(b) Outflows(c) None of these

(7) M & A stands for:(a) Mergers & Analysis(b) Mergers & Acquisitions(c) Mergers & Allocation(d) None of these

(8) An endowment insurance policy can be taken in respect of:(a) Fire insurance(b) Accident insurance(c) Life insurance

Page 15: accountiing MCQS

(d) None of these

(9) Audit and special audit are the same:(a) In Insurance Company(b) In Banking Company(c) None of these

(10) Acid test is the same as:(a) Quick test(b) Liquid test(c) None of these

  #4   Wednesday, January 04, 2012

omerkhan 41st CTP - PSP (1st KPK)

 

Join Date: Jul 2006Posts: 39 Thanks: 16Thanked 57 Times in 17 Posts

(8) Deferred Taxation amount be treated as:(a) Foot note(b) An item in the Balance Sheet on asset side(c) None of these

None of these may be the answer because deferred taxation is what you have recognized in your financial statement but not paid to tax authorities, so it should be a liability. But I am not sure.

(9) Return of Equity will be calculated as under:(a) Operating Profit x 100/Equity(b) Net profit x 100/Paid up Capital only(c) None of these

Return on Equity is calculated as Net Profit/Shareholders' Equity x 100

  #5   Wednesday, January 04, 2012

xaara~hussain Senior Member

  Join Date: Oct 2005Location: IslamabadPosts: 778 Thanks: 710Thanked 810 Times in 373 Posts

Page 16: accountiing MCQS

Accounting & Auditing Paper-I (2003)

(1) Acid Test Ratio is calculated as under:(a) Current Assets/Current Liabilities(b) Fixed Assets/Current Liabilities(c) Liquid Assets/Current Liabilities(d) None of these

(2) Deferred cost is a:(a) Liability(b)Asset(c) None of these

(3) Work Sheet is:(a) Balance Sheet(b) Fund Flows Statement(c) A combination of Profit and Loss Account and Balance Sheet items(d) None of these

(4) Banks, for the preparation of financial statements, are governed under:(a) Banking Companies Ordinance, 1962(b) State Bank of Pakistan Act(c) None of these

(5) Return on investment is computed:(a) Investment/Profit x 100(b) Profit x 100/Investment(c) None of these

Accounting & Auditing Paper-II (2003)

Write only the correct answer in the Answer Book. Do not reproduce the questions.

(1) Rent of the premises constitutes variable expenses for cost allocation:(a) True(b) False

(2) Sugar used in a sugarcane company is:(a) Variable cost(b) Fixed cost(c) None of these

Page 17: accountiing MCQS

(3) An auditor is liable under the following circumstances:(a) Third Party Liabilities(b) Fraud perpetrated in highly sophisticated circumstances(c) None of these

(4) Agricultural income is taxable under the Income Tax Laws of Pakistan:(a) True(b) False

(5) Principal and markup payment within one year constitutes long term liability for disclosure in the balance sheet of a company.(a) True(b) False

(6) Ordinarily one can have the following partners in a partnership in Pakistan under the Partnership Act 1932.(a) 10(b) 20(c) 30(d) None of these

(7) Working Capital finance can be termed as “Running Finance” in a limited company.(a) True(b) False

(8) Income from Capital gains arising out of trading on a stock strange in Pakistan is taxable these days:(a) True(b) False

(9) Conversion Cost is calculated as under:(a) Labour Plus Materials(b) Labour plus overheads(c) None of these

(10) Current Ratio can be calculated as under:(a) Current Liabilities/Current Assets(b) Current Assets/Current Liabilities(c) None of these

Quote:

Page 18: accountiing MCQS

Originally Posted by omerkhan (8) Deferred Taxation amount be treated as:(a) Foot note(b) An item in the Balance Sheet on asset side(c) None of these

None of these may be the answer because deferred taxation is what you have recognized in your financial statement but not paid to tax authorities, so it should be a liability. But I am not sure.

I differ with reason you mentioned because as far as I studied it, Deferred Taxation arises due to difference of depreciation method used by the companies,as in Pakistan Tax authorities recommend companies to use Diminishing balance method and if company is using straight line method then there will be some difference incurred in amount of tax to be paid in starting the difference is Credit but as time passes the difference will start getting Debit or its become receivable..

AS in given question it is not evident that at what point of time they are asking this..but in my view in long run Deferred Tax will be given a Debit Balance means put on asset side...but in starting this shows Credit balance as well it can be liability or asset...so keeping in view these things I too go with part C

Quote:

(9) Return of Equity will be calculated as under:(a) Operating Profit x 100/Equity(b) Net profit x 100/Paid up Capital only(c) None of these

Return on Equity is calculated as Net Profit/Shareholders' Equity x 100

Yup you are right...!

Quote:

Originally Posted by xaara~hussain

(1) Rent of the premises constitutes variable expenses for cost allocation:(a) True(b) False

This is False because whether you use premises or not, you will have to pay Rent.. __________________Regards,

Page 19: accountiing MCQS

~ Riz ~

  #7   Saturday, January 07, 2012

Quote:

Originally Posted by Rixwan This is False because whether you use premises or not, you will have to pay Rent..

hmm is it about the expense itself or its value? I mean the expense is fixed but not value.

  #8   Saturday, January 07, 2012

Rixwan Senior Member

 

Join Date: Feb 2010Location: KarachiPosts: 851 Thanks: 183Thanked 552 Times in 388 Posts

Quote:

Originally Posted by xaara~hussain hmm is it about the expense itself or its value? I mean the expense is fixed but not value.

its for both...when you acquire some premises on rent there have always been fixed rent for certain period like in house rent case the agreement is for 11 months and after 11 months the rent will be revised as per agreed rate..and in accounting when you are considering rent you will take in to account the value of rents..you always made entry in numeric terms..but in nature Rent will be termed as Fixed expense with what ever value you paid...

I think you have been taking fixed and Variable expenses with wrong perception..in real

Fixed Expenses are those which you will have to bear whether you do

Page 20: accountiing MCQS

any production or not. It does not mean that value which you pay remain Fixed. e.g if you have acquired some building on rent you will have to pay rent whether you use it or not.

On the contrary, Variable expenses are those expenses which directly related to your production means if you do any production these expenses are high and if you do not produce these expenses are either low or none.e.g. your material Cost or Labour Cost, If you are going to do any production these costs will incur or else not.

I hope it clears your concept and if not then feel free to ask. __________________Regards,~ Riz ~

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  #9   Monday, March 11, 2013

dawoodahmad Member

 

Join Date: Jul 2011Location: 64.31.31.91Posts: 33 Thanks: 7Thanked 4 Times in 4 Posts

Quote:

Originally Posted by xaara~hussain Accounting & Auditing Paper -I (2000)

(9) Quick Ratio can be computed as under:(a) Quick . Assets/Quick Liabilities(b) Quick . Liabilities Current Assets(c) Current Assets/ Current Liabilities

(18) Every limited Company in Pakistan is required by law to include the following along with financial reports:(a) Ratio Analysis

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(b) Chairman’s Review(c) None of these.

Accounting & Auditing Paper -II (2000)

6. Verification includes:a. Checking Vouchersb. Examining audit reportc. None of the above

(9) Quick Ratio can be computed as under:(a) Quick . Assets/Quick Liabilities(b) Quick . Liabilities Current Assets(c) Current Assets/ Current Liabilities

(18) Every limited Company in Pakistan is required by law to include the following along with financial reports:(a) Ratio Analysis(b) Chairman’s Review(c) None of these.

6. Verification includes:a. Checking Vouchersb. Examining audit reportc. None of the above __________________Victory Loves Preperation

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  #10   Tuesday, June 11, 2013

Saba Yasmin Junior Member

 

Join Date: Jun 2013Posts: 4 Thanks: 3Thanked 0 Times in 0 Posts

Quote:

Page 22: accountiing MCQS

Originally Posted by xaara~hussain

Accounting & Auditing Paper-I (2002)

(7) Preparation of annual report of a firm is governed under:(a) Partnership Act 1932(b) Under partnership Deed(c) None of these

please share reasoning...

Quote:

Originally Posted by dawoodahmad (9) Quick Ratio can be computed as under:(a) Quick . Assets/Quick Liabilities(b) Quick . Liabilities Current Assets(c) Current Assets/ Current Liabilities

(18) Every limited Company in Pakistan is required by law to include the following along with financial reports:(a) Ratio Analysis(b) Chairman’s Review(c) None of these.

6. Verification includes:a. Checking Vouchersb. Examining audit reportc. None of the above

quick ratio= quick assets/current liabilitiesthere is no such option so i second dawoodahmad that best possible answer should b option (a)

[quote](3) Work Sheet is:(a) Balance Sheet(b) Fund Flows Statement(c) A combination of Profit and Loss Account and Balance Sheet items(d) None of these[quote]

answer should b none of these

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ACC311 Fundamentals of Auditing Solved MCQSTake this Quiz online and evaluate your performance Start

1. Standard format of Auditor’s Report as per the Companies Ordinance 1984 is described in which one of the following Legal Forms?A. Form31AB. Form32AC. Form30A

Page 25: accountiing MCQS

D. Form35AForm35A.http://www.vuzs.net/

2. IFRS stands for which one of the following?A. International Financial Reporting StandardsB. International Financial Recording SystemsC. International Financial Recording StatementsD. International Financial Reporting Systems

International Financial Reporting Standards.

3. Which of the following is NOT one of the five major components of internal control?A. Risk assessmentB. Control activitiesC. Information and communication systemD. Human resource background checksHuman resource background checks.

4. All of the following should be observed and inspected by the auditors during the risk assessment process of an entity EXCEPT:A. Observations of Activities and operationsB. Inspection of Documents and recordsC. Reading Management reportsD. Visit to other companies in the industryVisit to other companies in the industry.

5. Which one of the following audit techniques ordinarily provides an auditor with the least assurance about the operating effectiveness of an internal control activity?A. Inquiry of client personnelB. Inspection of documents and reportsC. Observation of client personnelD. Preparation of system flowchartsInspection of documents and reports.

6. Which one of the following opinions advocates that the auditor should form an opinion only after obtaining sufficient audit evidence instead of blindly accepting any information given by the management?A. Auditor’s liabilityB. Professional ethicsC. Professional SkepticismD. Auditor’s opinionProfessional ethics.

7. Which one of the following is NOT required as part of the audit process?A. Substantive proceduresB. Tests of control

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C. Assessment of materialityD. Procedures to obtain an understanding of the internal control structureProcedures to obtain an understanding of the internal control structure.

8. SECP stands for which one of the following?A. Securities and Exchange Collaboration of PakistanB. Securities and Exchange Consortium of PakistanC. Securities and Exchange Commission of PakistanD. Securities and Exchange Constitution of PakistanSecurities and Exchange Commission of Pakistan.

9. One type of analytical procedure is the ‘Trend Analysis’. Which one of the following is the best example of trend analysis?A. Comparison of company financial ratios to that of its competitorsB. Comparison of accounting records to budgeted amountsC. Comparison of inventory levels over the past 3 yearsD. Comparison of interest expenses to outstanding loan balancesComparison of inventory levels over the past 3 years.

10. While conducting operational audit, which one of the following auditing procedures does the auditor primarily rely upon?A. Inquiry and observationB. Analytical proceduresC. Physical inspectionD. Tracing and vouchingAnalytical procedures.

11. Which one of the following helps to achieve reasonable assurance about the fairness of financial statements during an audit process?A. Audit reportB. Audit evidenceC. Audit engagementD. Audit programAudit report.

MGT411 Money, Banking and Financial Markets Solved MCQs 30

Q#1 A central bank typically:A) has a monopoly in issuing currency.B) use monetary policy in attempts to stabilize economic growth and/or inflation.C) serves as a "bankers' bank" that provides services to other banks.D) All of the above are correct.The Basics: How Central Banks Originated and Their Role Today.

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Q#2 The primary reason for the existence of central banks today is to:A) help finance wars.B) serve as a bank for the government, accepting deposits and providing the government with checkable deposits.C) control the money supply.D) stabilize the prices of specific commodities.The Basics: How Central Banks Originated and Their Role Today.

Q#3 Monetary policy in the countries that are part of the European Monetary Union is controlled by the:A) European Central Bank.B) central banks of each of the member countries.C) Federal Reserve Board.D) Bank ofEngland.The Basics: How Central Banks Originated and Their Role Today.

Q#4 Which of the following tasks is NOT performed by a central bank as part of its role as a "bankers' bank?"A) providing loans to banks during periods of financial stressB) managing the payments systemC) controlling stock pricesD) accepting deposits from banks

Q#5 Central banks can serve as a lender of last resort because:A) they have the ability to create money.B) they are the only financial institution that is legally allowed to make loans during a financial panic.C) the interest rates they charge are so high that banks are virtually never willing to borrow from the Fed.D) banks are more likely to borrow money from their depositors during a financial panic.The Basics: How Central Banks Originated and Their Role Today.

Q#6 Fedwire:A) is a financial news network developed by the Federal Reserve Board.B) is used for interbank transfers.C) was once heavily used by banks, but is rarely used today since there is little need for interbank transfers now that the internet exists.D) is used by the Fed solely to make loans to member banks.The Basics: How Central Banks Originated and Their Role Today.

Q#7 Historical evidence indicates that theU.S. financial system is:A) always very stable as long as the government does not imposed any regulations.B) prone to periods of instability that have imposed substantial costs on society.C) somewhat unstable, but this does not matter much since the social cost of the instability is always low.

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D) as unstable today as it was in the late 1800s.Stability: The Primary Objective of All Central Banks.

Q#8 One of the main objectives of a central bank is to:A) reduce idiosyncratic risk in financial markets.B) reduce systematic risk in financial markets.C) encourage a low and stable rate of economic growth.D) achieve a high and stable inflation rate.Stability: The Primary Objective of All Central Banks.

Q#9 Central banks generally place a great deal of emphasis on maintaining a low and stable inflation rate because:A) inflation lowers the information content of prices.B) economic growth tends to decline as inflation rates rise.C) inflation tends to be less predictable when inflation rates rise.D) All of the above are correct.

Q#10 Central banks usually establish a positive inflation rate target rather than a zero inflation rate target because:A) economic growth is higher when the inflation rate rises.B) a positive inflation rate makes it possible for firms to reduce real wages without reducing nominal wages, leading to more efficient labor markets.C) the Fed is a more profitable operation for the government when the inflation rate is positive.D) a higher inflation rate results in a higher unemployment rate, and higher unemployment rates are preferred by policymakers.Stability: The Primary Objective of All Central Banks.

Q#11 Which of the following is not a primary objective of the Fed?A) low and stable inflationB) high and stable real growthC) financial system stabilityD) maintaining low interest rates

Q#12 Exchange–rate stability is:A) a more important goal for the Fed than it is for the central banks of smaller and more trade-oriented economies.B) a less important goal for the Fed than it is for the central banks of smaller and more trade-oriented economies.C) equally important as a goal for the Fed as it is for the central banks of smaller and more trade-oriented economies.D) a primary objective of the Fed.

Q#13 Which of the following is not generally a characteristic of a successful central bank?A) Central bank policy must be controlled by the same authorities.B) Central bank decisions must be made in private and policy should not be publicly announced.C) Decision making should be made by an individual, not a committee, to ensure consistency of

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goals.D) The central bank should operate within a framework in which it has clear goals.

Q#14 Central bank independence is:A) not very common in industrialized countries today.B) a practice that was widely adopted by central banks for industrialized countries in the late 1800s.C) a relatively recent historical phenomenon.D) a policy that is practiced by the European Central Bank, but not the Fed.

Q#15 Empirical evidence suggests that a higher level of central bank independence results in:A) higher average inflation rates than occur in countries with less independent central banks.B) lower average inflation rates than occur in countries with less independent central banks.C) the same average inflation rates that occur in countries with less independent central banks.D) lower rates of economic growth than occurs in countries with less independent central banks.

Q#16 A source of conflict between monetary and fiscal policy decision makers is that:A) fiscal policy decision makers place more emphasis on short-term objectives while monetary policy makers focus on long-term objectives.B) it is easier, from a political standpoint, to pay for increased government spending by a monetary expansion than by raising taxes.C) Both of the above are correct.D) None of the above is correct.

Solution is provided by vuZs Solution Team.You are free to distribute and use it. In case you wanted to host or re-distribute it. Please don’t remove the links of group and website  1. Which of the following correctly states the relationship regarding banks' balance sheets? 

A. Total Bank Liabilities = Total Bank capital + Total Bank Assets.B. Total Bank Assets = Total Bank Liabilities + Total Bank Capital. C. Total Bank Assets = Total Bank Liabilities – Total Bank Capital.D. Total Bank Assets = Total Bank Capital – Total Bank Liabilities.

 2. A bank's reserves do not include: 

A. U.S. Treasury bills. B. Currency in the bank.

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C. The bank's deposits at the Federal Reserve.D. Currency in ATM machines.

 3. Eurodollars are: 

A. Dollar-denominated deposits in foreign banks. B. Euro denominated deposits in U.S. BanksC. The currency of the European Economic Union.D. Dollars that are specially printed for use in the European Union countries to minimize

counterfeiting. 4. One of the unique problems that banks face is: 

A. They hold illiquid assets to meet liquid liabilities. B. They hold liquid assets to meet illiquid liabilities.C. They hold liquid assets to meet liquid liabilities.D. Both banks' assets and liabilities are illiquid.

  5. Central banks perform each of the following EXCEPT: 

A. Issue currency.B. Operate a payments system.C. Controls the availability of money and credit.D. Manages fiscal policy.

 6. The specific goals of central banks include each of the following EXCEPT: 

A. High and stable real growth.B. Low and stable inflation.C. High levels of imports. D. Low and stable unemployment rates.

 7. Small and medium enterprise (SME) Bank is: 

A. A Finance companyB. A Securities firmC. A Government sponsored enterprise D. An insurance company

 8. ---------------is classified as a liability for a commercial bank: A.     ReservesB.     Commercial loansC.     Demand depositsD.     Deposits with the Federal Reserve 

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9. ------------------is a primary policy tool of the Central Bank: A.     Inflation rateB.     Open market operationsC.     interest rateD.     money supply 10. -----------is a component of the liability side of the commercial bank’s balance sheet: 

A. DepositsB. LoansC. SecuritiesD. All of the given options

  1) Instruments that are not directly under the control of the Central Bank are referred to as: 

A.     Operating instrumentsB.     Intermediate targetsC.     Economic instrumentsD.     Social instruments

 2) Every country with high inflation has ____________ money growth: 

A.     HighB.     LowC.     MediumD.     Zero

 3) Which of the following statement is true? 

A.     Nominal GDP = PYB.     Nominal GDP > PYC.     Nominal GDP < PYD.     Nominal GDP ≠ PY

 4) According to Milton Friedman, Central Banks should set money      growth at a __________ rate:                           

A.     Increasing rateB.     Decreasing rateC.     Constant rateD.     Zero rate 

 

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 5) ____________ is one of the financial instruments that we can hold in our   investment portfolios: 

A.     BondsB.     SharesC.     MoneyD.     Term finance certificates (TFC)

 6) Increases in price level will ____________ the purchasing power of money: 

A.     IncreaseB.     DecreaseC.     No changeD.     Balance

 7) At long run real interest rate: 

A.     AD = Potential OutputB.     AD > Potential OutputC.     AD < Potential OutputD.     None of the given options

 8) __________ curve is downward sloping because higher inflation reduces real money balances: 

A.     Aggregate Demand CurveB.     Aggregate Supply CurveC.     IS CurveD.     LM Curve

 9) Increases in government purchases will ________ the aggregate demand: 

A.     Increase B.     DecreaseC.     No changeD.     Balance

 10) A change in cost of producing output causes the ________ curve to shift: 

A.     Aggregate Demand CurveB.     Aggregate Supply CurveC.     IS CurveD.     LM Curve

 1. According to the liquidity premium theory of the term structure, when the yield curve has its usual slope, the market expects:

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 a. Short-term interest rates to rise sharply.b. Short-term interest rates to stay near their current levels.c. Short-term interest rates to drop sharply.d. None of the above.

 2. When the yield curve slopes down,

a. The expectations theory suggests that short-term interest rates are expected to fall.b. The segmented markets theory suggests that short-term interest rates are expected to rise.c. The expectations theory suggests that short-term interest rates are expected to rise.d. The liquidity premium theory suggests that short-term interest rates are expected to rise.

 3. Which of the following patterns of term structure occur most frequently?

a.       Ascending yield curveb.      Descending yield curvec.       Flat yield curved.      Humped yield curve

 4. Common stocks (or corporate stocks):

a. Represent an IOU on the part of the issuing firmb. Entitle the holder to contractual paymentsc. Were a poor investment over the period 1982-1996d. Allows the holder to share in the earnings of the firm

 5. Financial intermediaries: 

a. Channel funds from savers to borrowersb. Greatly enhance economic efficiencyc. Have been an source of many financial innovationsd. Have done all of the above

 6. Which of the following cannot be described as indirect finance?

a. You take out a mortgage from your bank.b. An insurance company lends money to General Motors Corporation.a. You borrow $1000 from your best friend.c. You buy shares in a mutual fund.

7. Which of the following is a depository institution? 

a.       Life insurance Companyb.      Credit unionc.       Pension fundd.      Finance company

 8. Which of the following is traded in a money market? 

a.       U.S. Treasury bonds

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b.      Mortgagesc.       Common stocksd.      Federal funds

 9. The primary liabilities of a savings and loan association are:

a.       Bonds.b.      Mortgages.c.       Deposits.d.      Commercial paper.

 10. Financial intermediaries promote efficiency and thereby increase people’s wealth: 

a. By reducing the transaction cost of linking together lender and borrowers.b. To the extent that they help solve problems created by adverse selection and moral

hazard.c. By providing additional jobs.d. Because of only (a) and (b) of the above.

 11. When an investment bank purchases a new issue of securities in the hopes of making a profits, it is said to ________ the issue. 

a. Pawnb. Back stockc. Syndicated. Underwrite

12. Which of the following is a use for commercial bank funds? 

a. Loansb. Securitiesc. Reservesd. All of the above

   13. On the commercial bank balance sheet, which of the following is an asset? 

a. Capital accountsb. Deposits with Federal Reservec. transactions depositsd. All of the above

  14. If a bank has total assets of $100 million and capital accounts of $8 million, then:

a. Its total liabilities are $92 millionb. Its total liabilities are $108 millionc. It has an equity multiplier of 10

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d. None of the above are true 15. A bank can increase its leverage by increasing its ratio of:

a. Earnings/total assetsb. Total assets/equity capitalc. Earnings/equity capitald. Equity capital/total assets

 16. When you deposit a $100 check in your bank account at the First National Bank of Chicago and you withdraw $50 in cash, then: 

a. The liabilities of First National Bank rise by $100.b. The reserves of First National Bank rise by $100.c. The assets of the First National Bank rise by $100.d. The liabilities of the First National Bank rise by $50.

 17. Commercial banks obtain funds by:

a. Issuing demand depositsb. Borrowing from other banksc. Issuing ownership claims (equity)d. All of the above

 18. A bank failure is more likely to occur when: 

a. A bank holds more U.S. government securitiesb. A bank suffers large deposit outflows.c. A bank holds more excess reserves.d. A bank has more bank capital.

 19. ---------------measures how efficiently a bank uses its assets:  

a. Return on assetsb. Return on equityc. Bank capitald. Bank Profitability

 20. -----------refers to the risk assessment and loss reimbursement guarantee by the individual risk experts of the relevant field:  

a. Underwriting processb. Research processc. Insurance processd. None of the given options

 21. The euro is the name for: 

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a. A currency deposited outside its country of origin.b. A bond sold internationally outside of the country in whose currency the bond is

denominated.c. A common European currency.d. A type of sandwich.

 22. Banks can operate in other countries by: 

a. Offering same services as in home countryb. Opening a foreign branchc. Creating an international Banking Facilityd. All of the given options.

 23. The theory of efficient markets: 

a. Allows for higher than average returns if the investor takes higher than average risk b. Says insider information makes markets less efficientc. Rules out high returns due to chanced. Assumes people have equal luck

 24. If information in a financial market is asymmetric, this means: 

a. Borrowers and lenders have perfect informationb. Borrowers would have more information than lendersc. Borrowers and lenders have the same informationd. Lenders lack any information

 25. Khushali Bank is: 

a. A Finance companyb. A Securities firmc. A Government sponsored enterprise d. An insurance company

 1- Which of the following appears as a liability in the balance sheet of the central bank? 

A.     CurrencyB.     The government’s deposit accountC.     The deposit accounts of the commercial banksD.    All of the given options

  2- The transaction in which central bank buys or sells foreign currency reserves is known as: 

A.     Foreign exchange intervention

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B.     Open market operationC.     Discount loansD.     Reserve requirement

 3- Which of the following equations depicts equation of exchange? 

A.     MV= VYB.     MV=PYC.     MP=VYD.     V=PY

 4- ---------------is determined by the central bank and the behavior of the banking system: 

A.     Money demandB.     Money supply C.     Aggregate demandD.     Aggregate supply

  5- If the alternative assets become more risky then the demand for money:  

A.     Goes upB.     Goes downC.     Remains unchangedD.     None of the given options

  6- The interest rate at which aggregate demand equals potential output is known as: 

A.     Discount rateB.     Short run real interest rateC.     Long run real interest rateD.     Inflation rate

 7- An increase in the long run real interest rate shifts the monetary policy reaction curve to the: 

A.     RightB.     LeftC.     No changeD.     None of the given options

 8- An increase in oil prices causes the short run aggregate supply curve to shift: 

A.     UpwardB.     Downward

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C.     No changeD.     All of the given options

  9- An increase in potential output shifts the long run aggregate supply curve to the: 

A.     LeftB.     RightC.     No changeD.     None of the given options

  10- --------------policy works slowly and almost impossible to implement effectively:  

A.     Monetary policyB.     Fiscal policyC.     Trade policyD.     Foreign exchange policy

Quiz # 44

 

Q#1Considering business cycles over the last fifty years in U.S. history, one would say that:

A) the lower the growth, the more likely inflation is to fall.

B) the lower the growth, the less likely inflation is to fall.

C) the higher the growth, the more likely inflation is to fall.

D) inflation does not change as much with growth as it used to.

Feedback:

LOD: 1Understanding Business Cycle Fluctuations.

 

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Q#2Which of the following is correct?

A) A decrease in the price of oil would be a supply shock.

B) A decrease in consumer confidence would be a demand shock.

C) Shocks can cause shifts in either the demand or supply curve.

D) All of the above are correct.

Feedback:

LOD: 1Sources of Fluctuations in Output and Inflation.

 

Q#3If the central bank increases its inflation target:

A) the monetary policy reaction curve will shift to the right.

B) the monetary policy reaction curve will shift to the left.

C) there will be a movement up along the monetary policy reaction curve.

D) there will be a movement down along the monetary policy reaction curve.

Feedback:

LOD: 2Sources of Fluctuations in Output and Inflation.

 

Q#4If government purchases decrease and as a result push current output above potential output, monetary policymakers are likely to:

A) raise the real interest rate.

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B) lower the real interest rate.

C) keep the real interest rate constant and focus on only changing the nominal interest rate.

D) purchase Treasury securities.

Feedback:

LOD: 2Sources of Fluctuations in Output and Inflation.

 

Q#5Suppose that an increase in consumer confidence shifts the dynamic aggregate demand curve to the right. Which of the following is correct?

A) In the absence of a monetary policy response, the short-run aggregate supply curve will shift to the right.

B) In the absence of a monetary policy response, the short-run aggregate supply curve will shift to the left.

C) If monetary policymakers react, the dynamic aggregate demand curve will shift farther to the right.

D) Even without a monetary policy response, the dynamic aggregate demand curve will shift back to the left.

Feedback:

LOD: 3Sources of Fluctuations in Output and Inflation.

http://groups.google.com/group/vuZs/web/mba 

 

Q#6Stagflation is associated with:

A) higher inflation and lower growth.

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B) higher inflation and higher growth.

C) lower inflation and lower growth.

D) lower inflation and lower growth.

Feedback:

LOD: 2Sources of Fluctuations in Output and Inflation.

 

Q#7Which of the following statements is incorrect?

A) Monetary policymakers find it more difficult to deal with the effects of a supply shock.

B) Monetary policymakers can shift the long-run aggregate supply curve.

C) Monetary policymakers can neutralize movements in aggregate demand.

D) Shifts in the monetary policy reaction function shift the dynamic aggregate demand curve.

Feedback:

LOD: 2Using the Aggregate Demand-Aggregate Supply Framework.

 

Q#8A decrease in consumer confidence would like result in fiscal policymakers:

A) cutting taxes or increasing spending.

B) shifting the monetary policy reaction curve left.

C) shifting the monetary policy reaction curve right.

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D) raising taxes or decreasing spending.

Feedback:

LOD: 2Using the Aggregate Demand-Aggregate Supply Framework.

 

Q#9A decrease in taxes would likely occur in response to some shock that:

A) caused the dynamic aggregate demand curve to shift to the left.

B) caused a movement down and along the existing dynamic aggregate demand curve.

C) caused a movement up and along the existing dynamic aggregate demand curve.

D) caused the dynamic aggregate demand curve to shift to the right.

Feedback:

LOD: 2Using the Aggregate Demand-Aggregate Supply Framework.

 

Q#10To take advantage of the opportunity provided by positive supply shocks, monetary policymakers should act to:

A) flatten the slope of the monetary policy reaction curve.

B) shift the monetary policy reaction curve left.

C) raise the potential level of output.

D) make the slope of the monetary policy reaction curve steeper.

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Feedback:

LOD: 2Using the Aggregate Demand-Aggregate Supply Framework.

http://groups.google.com/group/vuZs/web/mba 

 

Q#11The "great moderation" of the 1990s has been attributed to:

A) luck.

B) the increased ability of economies to absorb external economic disturbances.

C) more effective monetary policy.

D) All of the above.

Feedback:

LOD: 1Using the Aggregate Demand-Aggregate Supply Framework.

 

Q#12In the long run an increase in potential output will mean that:

A) in the long run inflation must fall.

B) in the long run inflation must rise.

C) in the long run inflation will not change from its previous level.

D) None of the above; what happens to inflation in the long run depends on the actions of monetary policymakers.

Feedback:

LOD: 1Using the Aggregate Demand-Aggregate Supply Framework.

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Q#13For "opportunistic disinflation" to occur:

A) potential output must increase and monetary policy makers must respond by shifting the monetary policy reaction curve to the left.

B) potential output must increase and monetary policy makers must respond by shifting the monetary policy reaction curve to the right.

C) potential output must increase and monetary policy makers must respond by shifting the dynamic aggregate demand curve to the right.

D) None of the above is correct.

Feedback:

LOD: 3Using the Aggregate Demand-Aggregate Supply Framework.

 

Q#14Which of the following is true about real-business-cycle theory?

A) According to the theory, the short-run aggregate supply curve shifts slowly in response to deviations of current output from potential output.

B) It assumes the inflexibility of prices and wages.

C) According to the theory, any shift in the dynamic aggregate demand curve results in fluctuations in potential output with no effect on inflation.

D) None of the above is correct.

Feedback:

LOD: 2Using the Aggregate Demand-Aggregate Supply Framework.

 

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Q#15Which of the following represents a correct action by monetary policy makers?

A) A drop in potential output occurs, and monetary policymakers shift the monetary policy reaction curve to the left.

B) A drop in potential output occurs, and monetary policymakers shift the monetary policy reaction curve to the right.

C) A recessionary gap occurs and monetary policymakers shift the monetary policy reaction curve to the right.

D) A recessionary gap occurs and monetary policymakers shift the monetary policy reaction curve to the left.

MGT401 Financial Accounting ii MCQs Collection from Online Quizzes BY PARISHYwww.vuzs.net

 

1. Which of the following is NOT the Classification of Current Assets with respect tothe Companies Ordinance 1984?Select correct option:Cash BalanceBank BalancePremisesMarketable Securities

2. Written down value of an asset = --------------Select correct option:Original cost – Accumulated depreciationOriginal cost – AppreciationBook value – Accumulated depreciationOriginal cost – Salvage value

3. Which of the following entities is not profit oriented entity?Select correct option:Sole - proprietorshipPartnershipCompaniesFoundations

4. All of the following are Fixed assets EXCEPT:Select correct option:Machinery

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Freehold landLeasehold landMarketable securities

5. A Partnership firm has a maximum ____ numbers of partners.Select correct option:201510026. Which of the following is NOT the Classification of Current Assets with respect tothe Companies Ordinance 1984?Select correct option:StockGeneral StoresSpare partsBank over draft

7. Which of the following IAS deals with Inventories?Select correct option:IAS 38IAS 23IAS 02IAS 16

8. Which one of the following is related to IAS 32 & 39?Select correct option:Property, Plant & EquipmentInventoryFinancial StatementsFinancial Instruments

9. IAS-16 deals with:Select correct option:Property, Plant and EquipmentCash Flow StatementPresentation of Financial StatementsEarning per share

10. Which of the following meeting is held once in the life of a company?Select correct option:Statutory MeetingAnnual General MeetingExtraordinary MeetingBoard Meeting

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11. Which of the following is NOT a Qualifying Asset?Select correct option:Power plan being in the process of manufactureInventories requiring a substantial period for manufacturingSpecial order for a special inventory that will be manufactured in 5 monthsAsset ready for use

12. Which of the following is original and planned investigation undertaken with theprospect of gaining new scientific or technical knowledge and understanding?Select correct option:ResearchDevelopmentAuditAccounting

13. Which of the following IAS deals with the Intangible Assets?Select correct option:IAS 38IAS 23IAS 01IAS 16

14 .Which of the following is/are the type(s) of stock for manufacturing concerns?Select correct option:Raw MaterialWork in ProcessFinished GoodsAll of the given options

15 .Which one of the following is a method of stock valuation?Select correct option:Diminishing Balance MethodWritten Down Value MethodSpecific Identification MethodSum of Year Digit MethodQuiz 2 hazlezzzzzz

14. All of the following are Fixed assets EXCEPT:Select correct option:MachineryFreehold landLeasehold landMarketable securities

15. Which of the following schedule provides disclosure requirements for ListedCompanies under Companies Ordinance 1984?

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Select correct option:4th schedule5th schedule6th schedule2nd schedule

16. Which of the following investment are recorded using Cost Method?Select correct option:Investments made for longer periodInvestments made for shorter periodInvestments made for shorter and longer periodNone of the given options

17. An enterprise would be the subsidiary of another enterprise if that investorenterprise can control the subsidiary represents:Select correct option:Subsidiary CompaniesHolding CompaniesPublic Limited CompaniesPrivate Limited Companies

18. Which of the following is NOT the method of stock valuation?Select correct option:FIFO MethodWeighted Average MethodSpecific Identification MethodStraight Line Method

19. Which of the following IAS is related to the Consolidated and Separate FinancialStatements?Select correct option:IAS 27IAS 28IAS 31IAS 32

Which one of the following is a method of stock valuation?Select correct option:Diminishing Balance MethodWritten Down Value MethodSpecific Identification MethodSum of Year Digit Method

20. Which of the following is the application of research findings or other knowledgeto a plan or design for the production of new or substantially improved materials,devices, products, processes, systems or services before the start of commercial

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production or use?Select correct option:Applied researchDevelopmentBusiness researchAccounting

21. What is the treatment of Depreciation in accounting?Select correct option:Treated as a reserveTreated as an expenseTreated as a surplusTreated as a Liability

22. Which of the following is/are example(s) of development activities?Select correct option:The design of tools, jigs, moulds and dies involving new technologyThe design, construction and testing of pre-production or pre-use prototypes andmodelsThe design, construction and operation of a pilot plantAll of the given options

23. Which of the following is/are the method(s) for calculating the cost of inventory?Select correct option:FIFO MethodWeighted Average MethodSpecific Identification MethodAll of the given options

24. Which of the following is (are) related with the IAS 23?Select correct option:Qualifying AssetsAmount to be capitalized related to the Borrowing costCapitalization period related to the Borrowing costAll of the given options

25. Partnership firm has a maximum ____ numbers of partners.Select correct option:20151002

26. Which of the following sections of the Companies Ordinance 1984 is related to theAnnual General Meeting?Select correct option:

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Section 157Section 158Section 159Section 160

27. Which of the following may consist of more than 20 persons in case ofpartnership?Select correct option:Firms of LawyersFirms of DoctorsFirms of AssociatesAll of the given options

28. Which one of the following is related to the Allowed Alternative Treatment for aninvestment in jointly controlled entities?Proportionate Consolidation MethodEquity MethodWeighted Average MethodSum of Year Digit Method

IAS-16 deals with:Select correct option:Property, Plant and EquipmentCash Flow StatementPresentation of Financial StatementsEarning per share

29. Companies are registered under:Select correct option:Partnership Act 1932Companies Ordinance 1984Partnership AgreementIncome Tax Ordinance 1979

30. Which of the following business is formed by the approval of Stock Exchange?Select correct option:Money Exchange CompanyNon Banking Finance CorporationTrade organization u/s 42 of the Companies ordinance 1984Corporate Brockage House

31. to the Allowed Alternative Treatment, Which of the following method is used forstock valuation?Select correct option:FIFO MethodLIFO Method

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Weighted Average MethodSpecific Identification Method

32. : Which of the following IAS deals with the Borrowing Costs?Select correct option:IAS 23IAS 07IAS 01IAS 16

33. : Which one of the following is the type of stock for trading concerns?Select correct option:Raw MaterialWork in ProcessFinished GoodsStock in Trade

34. : What is the meeting requirement for the directors of a Public LimitedCompany?Select correct option:At least once in each quarterAt least once in each monthAt least once in each yearAt least once in each week

35. : of the following represent(s) the Prime Cost?Select correct option:Direct Material Cost + Direct Labour CostTotal Factory Cost – Factory OverheadsConversion Cost – Factory Overheads + Direct Material CostsAll of the given options

36. Which of the following is/are example(s) of development activities?Select correct option:The design of tools, jigs, moulds and dies involving new technologyThe design, construction and testing of pre-production or pre-use prototypes andmodelsThe design, construction and operation of a pilot plantAll of the given options

37. Which of the following IAS deals with the Intangible Assets?Select correct option:IAS 38IAS 23IAS 01IAS 16

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38. : Which of the following is the Classification of Current Assets withrespect to the Companies Ordinance 1984?Select correct option:BuildingLandPremisesMarketable Securities

39. : Which of the following is/are example(s) of research activities?Select correct option:: Activities aimed at obtaining new knowledgeThe search, evaluation, final selection and application of research findingsThe search for alternativesAll of the given options

40. : Which one of the following type(s) of information is(are) available in 4thand 5th schedule of the Companies Ordinance 1984?Select correct option:Definitions and general requirements for preparation and presentation of financialstatementsRequirements for Balance SheetRequirements for Profit and Loss AccountAll of the given options

41. : Which one of the following IAS is related to the Interest in JointVenture?Select correct option:IAS 27IAS 28IAS 31IAS 32

42. Which of the following fixed asset is shown at cost rather at book value?MachineryFurnitureVehiclesLand

43. Which of the following is an example of Capital ExpenditureWages paid on the purchases of goodsCarriage paid on the purchases of goodsTransportation paid on machinery purchasedOctori duty paid on goods

44. Which of the following methodology is adopted for the valuation of investments inassociated companies?

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Equity MethodAt cost orUnder IAS 39At amortized costAt fair value:45. In case an item of property, plant and equipment is exchanged for similar asset ofthe enterprise, the cost of the new asset is measured at the -------------- of the oldasset.Carrying valueFair valueFuture valueSalvage Value

46. Which of the following represent(s) the Prime Cost?Direct Material Cost + Direct Labour CostTotal Factory Cost – Factory OverheadsConversion Cost – Factory Overheads + Direct Material CostsAll of the given options

47. Which of the following costs can be capitalized?Purchases of assets financed through issue of debenturesAssets that are not currently in use because of excess capacityAssets not currently undergoing activities necessary to prepare for intended useAssets intended for sale or use that are produced as discrete projects48. Which one of the following is(are) NOT recorded under Current Liabilities sectionof the Balance Sheet?DebenturesDeferred TaxationObligation Under Finance LeaseAll of the given options

49. Which of the following is the deduction or allowance allowed by a creditor to adebtor?Trade DiscountCash DiscountPurchases returnSales return

50. The term “Significant Influence” refers to the:Ability to participate but not to control financial and management affairs of the enterpriseAbility to participate and control financial and management affairs of the enterpriseNeither to control nor to participate in financial affairs of the enterpriseNone of the given options

51. Which of the following is a rebate or allowance from the scheduled price granted

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by the seller to the buyer?Trade DiscountCash DiscountPurchases returnSales return

52. Which of the following entities is profit oriented entity?NGOsTrustSocietiesSole - proprietorship

53. Which of the following is/are the Classification of Current Assets with respect tothe Companies Ordinance 1984?Cash BalanceLoans and AdvancesBank BalanceAll of the given

54. What is the treatment of Accumulated Depreciation in accounting?Treated as a reserveTreated as a contra assetTreated as a surplusTreated as an expense

55. Which of the following IAS deals with Inventories?IAS 38IAS 23IAS 02

56. Which one of the following is NOT the component of cost?Import dutiesInstallation costsCost of site preparationTransportation outwards

57. What is the treatment of Depreciation in accounting?Treated as a reserveTreated as an expenseTreated as a surplusTreated as a Liability

58. Which one of the following is related to the Benchmark Treatment for aninvestment in jointly controlled entities?Proportionate ConsolidationMethod

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Equity MethodLIFO MethodSpecific Identification Method

59. Which of the following is/are NOT the example(s) of Financial Asset?Minority interestSale of goodsPurchases of goodsAll of the given options

60. Which one of the following is a fixed asset?Cash in handAdvanced paymentClosing stockLeasehold vehicle

61. Which of the following is an example of Capital Expenditure?Wages paid on the purchases of goodsCarriage paid on the purchases of goodsTransportation paid on machinery purchasedOctori duty paid on goods

62. All of the following are Fixed assets EXCEPT:MachineryFreehold landLeasehold landMarketable securities

63. Which of the following IAS deals with the Borrowing Costs?IAS 23IAS 07IAS 01IAS 16

64. Which of the following IAS deals with the Borrowing Costs?IAS 23IAS 07IAS 01IAS 16

65. Which of the following is INCORRECT with respect to Perpetual InventorySystem?Receipt of inventory is debited to Stock AccountIssuance of inventory is Credited to Stock Account and Debited to MaterialConsumption Account

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Receipt of inventory is debited to Purchase AccountMaterial Consumption Account becomes the part of Trading Account

66. Which of the following is/are the Classification of Current Assets with respect tothe Companies Ordinance 1984?StockCash BalanceFinished GoodsAll of the given options

67. :Which of the following is an identifiable non-monetary asset without physicalsubstance?Tangible AssetIntangible AssetFloating AssetCirculating Asset

68. :Which of the following represent(s) the Cost of goods sold?Sales – Gross ProfitOpening Stock + Purchases – Closing StockCost of goods Manufactured + Opening Finished Goods Inventory – Closing FinishedGoods InventoryAll of the given options

69. Which of the following is(are) example(s) of Borrowing costs?Interest on bank overdraftsInterest on short-term borrowingsInterest on long-term borrowingsAll of the given options

70. Which of the following is the ability to govern the financial and operating policiesof an enterprise so as to obtain from its activities?ControlSignificant InfluenceDirect SubsidiaryIndirect Subsidiary

71. Which of the following is INCORRECT with respect to Perpetual InventorySystem?Receipt of inventory is debited to Stock AccountIssuance of inventory is Credited to Stock Account and Debited to Material ConsumptionAccount

Receipt of inventory is debited to Purchase AccountMaterial Consumption Account becomes the part of Trading Account

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72. Which of the following IAS deals with the Associated Companies?IAS 27IAS 28IAS 01IAS 07

73. Which of the following fixed asset is shown at cost rather at book value?MachineryFurnitureVehiclesLand

74. Which of the following is the deduction or allowance allowed by a creditor to adebtor?Trade DiscountCash DiscountPurchases returnSales return

75. Which of the following costs can be capitalized?Purchases of assets financed through issue of debenturesAssets that are not currently in use because of excess capacityAssets not currently undergoing activities necessary to prepare for intended useAssets intended for sale or use that are produced as discrete projects

76. 8:52 PM Which of the following is an asset that necessarily takes a substantialperiod of time to get ready for its intended use or sale?Qualifying AssetOutstanding AssetTangible AssetIntangible Asset

77. Which of the following investments are recorded using Equity Method?Investments made for longer periodInvestments made for shorter periodInvestments made for shorter and longer periodNone of the given options

78. Which of the following business is formed by the approval of State Bank ofPakistan?Money Exchange CompanyNon Banking Finance CorporationTrade organization u/s 42 of the Companies ordinance 1984Corporate Brockage House

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79. If Original cost is Rs. 100,000; Depreciation rate is 20% p.a. using straight linemethod; what will be the value of accumulated depreciation at the end of 2ndyear?Rs.20,000Rs. 40,000Rs. 80,000Rs. 60,000

80. Concept of Related Parties is defined in:Companies Ordinance 1984IASBoth Companies Ordinance 1984 and IASNeither in Companies Ordinance 1984 nor in IAS

81. Which one of the following is related to the IAS 39?Consolidated and Separate Financial StatementsInterest in Joint VentureFinancial Instruments Disclosure and PresentationFinancial Instruments Recognition and Measurement

82. Which of the following IAS affect(s) the recognition, presentation and discourse offixed assets in financial statements?IAS 01IAS 16IAS 23All of the given options

83. Which of the following is TRUE with respect to the disclosure requirements ofTrade Debts?Select correct option:Doubtful debts is deducted from the Provision for doubtful debtsDoubtful debts and its Provision is shown separately as assetProvision for doubtful debts is not taken into considerationNone of the given options

84. Which of the following IAS deals with the Borrowing Costs?Select correct option:IAS 23IAS 07IAS 01IAS 16

85. If Manufacturing Cost is Rs. 30,000 •Opening Work in Process Inventory is Rs.5,000 Closing Work in Process Inventory is Rs. 10,000 Then:What is the amountof Cost of Goods Manufactured?Select correct option:

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Rs. 35,000Rs. 25,000Rs. 15,000Rs. 20,000

86. Which of the following is/are the physical asset(s)?Select correct option:Term Finance CertificatesLoan AgreementsTrade ReceivablesAll of the given options

87. Which of the following methodology is adopted for the valuation of investmentsheld to maturity?Select correct option:Proportionate Consolidation or Equity MethodAt cost or Under IAS 39At amortized costAt fair value

88. In case an item of property, plant and equipment is exchanged for similar asset ofthe enterprise, the cost of the new asset is measured at the -------------- of the oldasset.Select correct option:Carrying valueFair valueFuture valueSalvage Value

89. All of the following are Fixed assets EXCEPT:Select correct option:MachineryFreehold landLeasehold landMarketable securities

90. If the holding company owns more then 50% but less then 100% shares of thesubsidiary company then the subsidiary type will be termed as:Select correct option:Partially owned subsidiaryWholly owned subsidiaryDirect subsidiaryIndirect subsidiary

91. Which of the following is NOT related to the qualitative characteristics that makefinancial information useful?

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Select correct option:Reliability onlyRelevancy onlyBoth Reliability and RelevancyUnderstandability

92. 5:57 PM Which of the following sections of the Companies Ordinance 1984 isrelated to the Statutory Meeting?Select correct option:Section 157Section 158Section 159Section 160

93. Which of the following sections of the Companies Ordinance 1984 is related to theStatutory Meeting?Select correct option:Section 157Section 158Section 159Section 160

94. Under which of the following assumptions, the Financial Statements are to beprepared?Select correct option:Future assumptionPast assumptionAccrual basis and Going concern assumptionsAccrual basis assumption only

95. What will be the Book value of asset if its Original cost is Rs. 100,000;Accumulated depreciation is Rs. 40,000; and Depreciation for the year is Rs.20,000?Select correct option:Rs. 140,000Rs. 160,000Rs. 80,000Rs. 60,000

96. Which one of the following type(s) of information is(are) available in 4th and 5thschedule of the Companies Ordinance 1984?Select correct option:Definitions and general requirements for preparation and presentation of financialstatementsRequirements for Balance Sheet

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Requirements for Profit and Loss AccountAll of the given options

97. Which of the following is an example of Revenue Expenditure?Select correct option:Carriage paid on the purchases of goodsTransportation paid on machinery purchasedA second-hand car was purchases for Rs. 7,000 and Rs. 5,000 were spent for his repairsand overhaulingAn additional room was constructed at a cost of Rs. 15,000

98. Which of the following IAS deals with Revaluation of Assets?Select correct option:IAS 16IAS 07IAS 01IAS 23

99. If the holding company owns marginally less than 100% shares of the subsidiarycompany then the subsidiary type will be termed as:Select correct option:Partially Owned SubsidiaryWholly Owned SubsidiaryVirtually Wholly Owned SubsidiaryIndirect Subsidiary

100. Which of the following is/are the Classification of Current Assets withrespect to the Companies Ordinance 1984?Select correct option:Cash BalanceLoans and AdvancesBank BalanceAll of the given options

101.Which of the following is NOT a Qualifying Asset?Select correct option:Power plan being in the process of manufactureInventories requiring a substantial period for manufacturingSpecial order for a special inventory that will be manufactured in 5 monthsAsset ready for use

102. If the holding company owns more then 50% but less then 100% sharesof the subsidiary company then the subsidiary type will be termed as:Select correct option:Partially Owned SubsidiaryWholly Owned Subsidiary

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Direct SubsidiaryIndirect Subsidiary

103. Which one of the following is NOT recorded under Equity section of theBalance Sheet?Select correct option:Share PremiumShare CapitalAccumulated ProfitDividend Payable

104. Preparation and presentation of Financial Statements are governed by:Select correct option:Companies Ordinance 1984International Accounting StandardsInternational Financial Reporting StandardsAll of the given options

105. Which of the following is NOT the Classification of Current Assets withrespect to the Companies Ordinance 1984?Select correct option:Cash BalanceBank BalancePremisesMarketable Securities

106. Which one of the following methods for inventory valuation is NOT suitablefor homogeneous units?Select correct option:FIFO MethodLIFO MethodWeighted Average MethodSpecific Identification Method

107. Which of the following is the application of research findings or otherknowledge to a plan or design for the production of new or substantially improvedmaterials, devices, products, processes, systems or services before the start ofcommercial production or use?Select correct option:Applied researchDevelopmentBusiness researchAccounting

108. Which of the following is NOT the type of Market Risk?Select correct option:

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Price RiskLiquidity RiskInterest Rate RiskCurrency Risk

109. Which of the following is original and planned investigation undertaken withthe prospect of gaining new scientific or technical knowledge and understanding?Select correct option:ResearchDevelopmentAuditAccounting

110. Which one of the following is related to IAS 32 & 39?Select correct option:Property, Plant & EquipmentInventoryFinancial StatementsFinancial Instruments

111. Which one of the following is NOT the component of cost?Select correct option:Import dutiesInstallation costsCost of site preparationTransportation outwards

112. Which of the following is the type of business owned by one person?Select correct option:Sole-ProprietorshipPartnershipPublic Limited CompanyUnlimited Company

113. Which one of the following is(are) recorded under the Equity section of theBalance Sheet?Select correct option:Share PremiumReservesAccumulated ProfitAll of the given options

114. According to the Allowed Alternative Treatment, Which of the followingmethod is used for stock valuation?Select correct option:FIFO Method

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LIFO MethodWeighted Average MethodSpecific Identification Method

115. Which of the following asset is not an example of Intangible Fixed Assets?Select correct option:VehiclesGood WillCopyrightsTrade Marks and Designs

116. Which of the following represents the Qualifying Asset?Select correct option:Inventory routinely manufacturedAsset ready for useManufacturing plantsNone of the given options

117. A Private limited company can be formed at least by:Select correct option:2 members3 members1 member07 members

118. Which one of the following is an example of Financial Asset?Select correct option:InventoriesPatent rightsGoodwillAccounts receivable

119. Which of the following option is/are TRUE with respect to the Disclosurerequirement for intangible assets acquired by the way of Government grants?Select correct option:The fair value initially recognizedDisclosure for carrying amountDisclosure for the amount of commitments for acquisition of intangible assetsAll of the given options

120. If stock valuation method is changed every year by the firm, which conceptthe firm has violated?Select correct option:The materiality conceptThe consistency concept

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The prudence conceptThe going concern concept

121. Which of the following is an example of Revenue Expenditure?Select correct option:Carriage paid on the purchases of goodsTransportation paid on machinery purchasedA second-hand car was purchases for Rs. 7,000 and Rs. 5,000 were spent for his repairs and overhaulingAn additional room was constructed at a cost of Rs. 15,000

122. Question # 14 of 15 ( Start time: 01:51:03 PM ) Total M - 1Which of the following sections of Companies Ordinance 1984 are related to the NonProfit oriented entities?Select correct option:Section 42Section 43Section 44Section 45

123. Which of the following may result for an inability to sell a financial assetquickly at close to its fair value?Select correct option:Price RiskLiquidity RiskInterest Rate RiskCurrency Risk

124. Which of the following schedule of the Company Ordinance 1984 is related tothe classification of intangible assets?Select correct option:4th schedule5th schedule6th schedule2nd schedule

125. The closing stock will be shown under the head of _______ in Balance Sheet.Select correct option:Non current AssetsCurrent AssetsIntangible AssetsTangible Assets

126. Which of the following is another name for Authorized Capital of acompany?Select correct option:Nominal Capital

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Issued CapitalSubscribed CapitalPaid up Capital

127. Which of the following is/are excluded from Financial Assets?Select correct option:Physical AssetsInventoriesPrepaid expensesAll of the given options

128. Which of the following IAS is related to the Consolidated and SeparateFinancial Statements?Select correct option:IAS 27IAS 28IAS 31IAS 32

129. Which of the following is the Classification of Current Assets with respect tothe Companies Ordinance 1984?Select correct option:BuildingLandPremisesMarketable Securities

130. Which of the following statement shows the financial position of thebusiness?Select correct option:Cash Flows StatementIncome StatementBalance SheetStatement of Owner's equity

131. According to the Benchmark Treatment, Which of the following method isused for stock valuation?Select correct option:FIFO Method or LIFO MethodLIFO MethodFIFO orWeighted Average MethodSpecific Identification Method

132. If the holding company owns100% shares of the subsidiary company thenthe subsidiary type will be termed as:Select correct option:Partially Owned Subsidiary

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Wholly Owned SubsidiaryDirect SubsidiaryIndirect Subsidiary

133. Under which of the following methods for inventory valuation, costs ofearliest purchases assumed still to be in inventory?Select correct option:FIFO MethodLIFO MethodWeighted Average MethodSpecific Identification Method

134. What is the maximum number of shareholders allowed for a Public LimitedCompany?Select correct option:205010Unlimited

135. Which of the following is/are equal to “Capital”?Net AssetsAssets – LiabilitiesNet worth of the firmAll of the given options

136. Which of the following is the amount for which an asset could be exchangedbetween knowledgeable, willing parties in an arm’s length transaction?Depreciable AmountFair ValueCostCarrying Amount

137. Which of the following asset is NOT an example of Tangible Fixed Assets?Patent rightsFurnitureVehiclesMachinery

138. Which of the following schedule provides disclosure requirements for ListedCompanies under Companies Ordinance 1984?4th schedule5th schedule6th schedule2nd schedule

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139. Which one of the following schedule provides disclosure requirements forNon-Listed Companies under Companies Ordinance 1984?4th schedule5th schedule6th schedule2nd schedule

140. in case an item of property, plant and equipment is exchanged for similarasset of the enterprise, the cost of the new asset is measured at the -------------- ofthe old asset.Carrying valueFair valueFuture valueSalvagevalue

141. Which of the following is NOT an accounting concept?PrudenceGoing concernDepreciationMatching

142. Depreciation is:A systematic allocation of depreciable amount of an asset over its estimated useful lifeThe end life of an assetThe increase in value of assetAnother name of Impairment

143. Which of the following statement shows the financial position of thebusiness?Cash Flows StatementIncome StatementBalance SheetStatement of Owner's equity

144. Which of the following represents the interest and other costs incurred by anentity in connection with the borrowing of funds?LoanInterest on borrowed money paid during the periodOutstanding interest on borrowed moneyBorrowing Costs

145. When we see the capital with Production capacity or operating capability ofthe enterprise then it called:The financial concept of capital maintenanceThe physical concept of capital maintenance

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Both physical and financial concept of capital maintenanceNeither physical nor financial concept of capital maintenance

146. Which of the following is/are example(s) of research activities?Activities aimed at obtaining new knowledgeThe search, evaluation, final selection and application of research findingsThe search for alternativesAll of the given options

147. which one of the following is(are) NOT recorded under Current Liabilitiessection of the Balance Sheet?Select correct option:DebenturesDeferred TaxationObligation Under Finance LeaseAll of the given options

148. Which of the following section of the Companies Ordinance 1984 deals withRevaluation of Fixed Assets?Select correct option:Section 235Section 236Section 237Section 238

149. Which of the following IAS affect(s) the recognition, presentation anddiscourse of fixed assets in financial statements?Select correct option:IAS 01IAS 16IAS 23All of the given options

 

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MGT101 : FINANCIAL ACCOUNTING

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MGT101 Question # 1 of 15 ( 05:38:27 PM )Which of the following is / are the particular/s of a cash book? (1) Date of transaction (2) Account title (3) AmountSelect correct option:1 only1 & 2 only1 & 3 only1, 2 & 3

MGT101 Question # 2 of 15 ( 05:38:51 PM )The total of all costs incurred to convert raw material into finished goods is known as:Select correct option:Prime costConversion costSunk costOpportunity cost

MGT101 Question # 3 of 15 ( 05:39:09 PM )Amount generated from sales in a business is called:Select correct option:IncomeNet IncomeGross ProfitOperating profit

MGT101 Question # 4 of 15 ( 05:39:57 PM )Cost of goods manufactured - opening work in process + ending work in process =?Select correct option:Cost of goods soldPrime costConversion costTotal factory cost

MGT101 Question # 5 of 15 ( 05:41:10 PM )Which of the following is the example of current liability?Select correct option:Notes payableNotes receivableAccounts receivablePrepaid expenses

MGT101 Question # 6 of 15 ( 05:41:27 PM )What will be debited, if business sold goods for Rs.10, 000 on credit?Select correct option:Cash account

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Sales accountAccounts receivable accountPurchases account

MGT101 Question # 7 of 15 ( 05:42:01 PM )Which of the following particular is NOT included in journal voucher?Select correct option:Name of organizationBank receipt numberDebit amountCredit amount

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MGT101 Question # 8 of 15 ( 05:42:25 PM )Consider the following data: Particulars Rs. Assets ? Owner's equity 35,000 Liabilities 90,000Select correct option:Rs. 35,000Rs. 55,000Rs. 1, 25,000Rs. 1, 05,000

MGT101 Question # 9 of 15 ( 05:43:03 PM )What would conversion costs if costs of raw materials, direct labor costs, and manufacturing overhead costs Rs.80,000, Rs.50,000, and Rs.60,000, respectively?Select correct option:Rs.130, 000Rs.110, 000Rs.140, 000Rs.190, 000

MGT101 Question # 10 of 15 ( 05:43:40 PM )The main purpose of _________ is to ascertain true result of the business operation during particular period of time.Select correct option:Cost AccountingFinancial AccountingManagerial AccountingTax Accounting

MGT101 Question # 11 of 15 ( 05:44:26 PM )If cost of sales is Rs. 90,000, income from sales Rs. 200,000 and operating expenses Rs. 100,000. What will be net result?Select correct option:Rs. 5,000 LossesRs.10, 000 ProfitsRs 1, 95,000 ProfitsRs 1, 95,000 Losses

MGT101 Question # 12 of 15 ( 05:45:12 PM )What is the next step to Journalizing in Accounting cycle?Select correct option:RecordingPosting

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BalancingAnalyzing

MGT101 Question # 13 of 15 ( 05:45:32 PM )Consider the following data: Particulars Rs. Assets 99,500 Owner's equity 50,500 Liabilities ?Select correct option:Rs. 49,000Rs. 55,000Rs. 125,000Rs. 115,700

MGT101 Question # 14 of 15 ( 05:46:07 PM )Net Profit = Income - _____________Select correct option:LiabilitiesAssetsExpensesCapital

MGT101 Question # 15 of 15 ( 05:46:39 PM )Depreciation arises because of:Select correct option:Fall in the market value of an assetFall in the value of moneyPhysical wear and tearAll of the given options

MGT101 Question # 1 of 15 ( 05:53:02 PM )Which of the following account balance/s is/are shown on credit side of Trial Balance? (It is assumed that all account balances are shown on normal balance)Select correct option:Capital accountSundry creditors accountAccounts payable accountAll of the given options

MGT101 Question # 2 of 15 ( 05:53:47 PM )In case of Income and Expenditure account, Excess of income over expenses in a specified accounting period is called:Select correct option:ProfitLossSurplusDeficit

MGT101 Question # 3 of 15 ( 05:54:58 PM )Which of the following Organization converts raw material into finished goods?Select correct option:Trading concernManufacturing concernMerchandising concernService concern

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When total liabilities are subtracted from total assets the remaining amount is known as:Select correct option:Equity or net assetsNet income or net lossTotal expensesTotal revenue

MGT101 Question # 5 of 15 ( 05:56:21 PM )Which one of the following is INCORRECT about closing Stock?Select correct option:It is added into current assetsIt is deducted from Material available for useIt becomes opening stock of next yearIt reduces the resources of business

MGT101 Question # 6 of 15 ( 05:56:55 PM )Budget is a plan of income, expenses & other financial operations for:Select correct option:Current periodFuture periodPast periodNone of the given options

MGT101 Question # 7 of 15 ( 05:57:33 PM )Find out the missing value of an Accounting Equation with the help of given data: Cash Rs.100, 000 Debtors Rs.10, 000 Other Assets Rs. 1,000 Owner’s equity Rs. 1, 000 Liabilities ?Select correct option:Rs. 12,000Rs. 11,000Rs. 110,000Rs. 111,000

MGT101 Question # 8 of 15 ( 05:58:42 PM )Which of the following account summarizes the profitability of business for a specific accounting period?Select correct option:Profit & Loss accountCash flow statementReceipt & Payment accountBalance Sheet

MGT101 Question # 9 of 15 ( 05:59:12 PM )Which of the following asset is NOT depreciated?Select correct option:Factory BuildingsOffice EquipmentPlant & MachineryLand

What will be debited, if Mohsin commenced business with cash?Select correct option:Cash accountCapital accountDrawings accountProprietor account

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MGT101 Question # 11 of 15 ( 06:00:17 PM )Which of the following is Not a part of General Ledger?Select correct option:Activity BookPurchase Return BookPurchase BookSales Book

MGT101 Question # 12 of 15 ( 06:00:53 PM )Debit signifies:Select correct option:Increase in Asset accountDecrease in liability accountDecrease in capital accountAll of the given options

MGT101 Question # 13 of 15 ( 06:01:24 PM )Under the diminishing balance method, depreciation is calculated on:Select correct option:The original costThe scrap valueBook valueBoth original cost and Scrap value

MGT101 Question # 14 of 15 ( 06:01:57 PM )The amount charged to depreciation goes on declining in:Select correct option:Depreciation fixed methodAnnuity methodWritten-down value methodStraight line depreciation method

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MGT101 Question # 15 of 15 ( 06:02:54 PM )Which of the following is NOT correct?Select correct option:Decrease in Assets will be debitDecrease in Liabilities will be debitDecrease in Expenses will be creditDecrease in Revenue will be debit

MGT101 Question # 1 of 15 ( 06:18:38 PM )What will be the effect on accounting equation if cash is received from a tenant as office rent?Select correct option:Increase cash and decrease equityIncrease cash and increase equityDecrease cash and increase equityDecrease cash and increase dividends

MGT101 Question # 2 of 15 ( 06:19:35 PM )Which one of the following is INCORRECT about closing Stock?Select correct option:It is added into current assets

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It is deducted from Material available for useIt becomes opening stock of next yearIt reduces the resources of business

MGT101 Question # 3 of 15 ( 06:20:07 PM )Which of the following is a FIRST product of accounting cycle?Select correct option:VoucherGeneral JournalGeneral LedgerFinancial Statements

MGT101 Question # 4 of 15 ( 06:20:37 PM )If cost of sales is Rs. 95,000, income from sales Rs. 200,000 and operating expenses Rs. 100,000. What will gross profit?Select correct option:Rs. 5,000Rs. 95,000Rs. 1, 00,000Rs.1, 05,000

MGT101 Question # 5 of 15 ( 06:21:21 PM )Which of the following are recorded in Cash Book?Select correct option:Receipts and paymentsProfits and lossesAssets and liabilitiesCapital and Expenditures

MGT101 Question # 6 of 15 ( 06:21:52 PM )Net Profit = Income - _____________Select correct option:LiabilitiesAssetsExpensesCapital

MGT101 Question # 7 of 15 ( 06:22:17 PM )Which of the following particular/s is/are included in payment voucher?Select correct option:Name of organizationCash paymentDateAll of the given options

MGT101 Question # 8 of 15 ( 06:22:54 PM )Cost of goods manufactured + opening finished goods – ending finished goods =?Select correct option:Total factory costCost of goods soldPrime costConversion cost

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MGT101 Question # 9 of 15 ( 06:24:08 PM )Which of the following account is normally NOT exists in the balance sheet of the manufacturing concern?Select correct option:Work in Process InventoryRaw Materials InventoryMerchandise InventoryFinished Goods Inventory

MGT101 Question # 10 of 15 ( 06:24:51 PM )If cost of sales is Rs. 90,000, income from sales Rs. 200,000 and operating expenses Rs. 100,000. What will be net result?Select correct option:Rs. 5,000 LossesRs.10, 000 ProfitsRs 1, 95,000 ProfitsRs 1, 95,000 Losses

MGT101 Question # 11 of 15 ( 06:25:32 PM )All the statements are correct about Journal voucher EXCEPT:Select correct option:Financial data is picked only from journal vouchers to JournalThese are used to record all transaction other than cash & bankThese are used to make corrections or adjustments to previous ReceiptFormat of journal voucher is different from other vouchers

MGT101 Question # 12 of 15 ( 06:26:35 PM )In case of Income and Expenditure account, Excess of income over expenses in a specified accounting period is called:Select correct option:ProfitLossSurplusDeficit

MGT101 Question # 13 of 15 ( 06:27:08 PM )The investment of Rs. 10,000 made by the owner in business will have an effect on which of the following accounts?Select correct option:Cash Account & Capital AccountCash Account & Expense AccountCapital Account & Revenue AccountCapital Account & Expense Account

MGT101 Question # 14 of 15 ( 06:27:41 PM )Outsider’s claim against the assets of the business is called:Select correct option:CapitalLiabilityExpenseIncome

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MGT101 Question # 15 of 15 ( 06:28:25 PM )Consider the following data: Particulars Rs. Assets 75,500 Owner's equity ? Liabilities 40,200Select correct option:Rs. 35,300Rs. 55,000Rs. 125,000Rs. 115,700

MGT101 Question # 1 of 15 ( 06:30:56 PM )What will be debited, if business bought goods on credit from Mr. Ali?Select correct option:Purchases accountMr. Ali accountCash accountSales account

MGT101 Question # 2 of 15 ( 06:31:56 PM )In the cost of goods sold statement, the sum of labor cost and the factory over head is known as:Select correct option:Conversion costPrime costTotal factory costCost of goods manufactured

MGT101 Question # 3 of 15 ( 06:32:36 PM )Consider the following data: Particulars Rs. Assets ? Owner's equity 35,000 Liabilities 90,000Select correct option:Rs. 35,000Rs. 55,000Rs. 1, 25,000Rs. 1, 05,000

MGT101 Question # 4 of 15 ( 06:33:17 PM )When total liabilities are subtracted from total assets the remaining amount is known as:Select correct option:Equity or net assetsNet income or net lossTotal expensesTotal revenue

MGT101 Question # 5 of 15 ( 06:33:50 PM )Which of the following is fiscal Year of Government of Pakistan?Select correct option:1st January to 31st December1st June to 31st May1st July to 30th June1st October to 30th September

MGT101 Question # 6 of 15 ( 06:34:32 PM )Which of the following is/are inventory valuation method(s)?Select correct option:FIFOLIFO

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Weighted averageAll of the given options

MGT101 Question # 7 of 15 ( 06:35:04 PM )The investment of Rs. 10,000 made by the owner in business will have an effect on which of the following accounts?Select correct option:Cash Account & Capital AccountCash Account & Expense AccountCapital Account & Revenue AccountCapital Account & Expense Account

MGT101 Question # 8 of 15 ( 06:35:37 PM )What will be debited, if business purchased Furniture on cash?Select correct option:Furniture accountCash accountBusiness accountBank account

MGT101 Question # 9 of 15 ( 06:36:09 PM )Cost of goods manufactured + opening finished goods – ending finished goods =?Select correct option:Total factory costCost of goods soldPrime costConversion cost

MGT101 Question # 10 of 15 ( 06:36:51 PM )Which of the following contents are included in the Cost of goods sold?Select correct option:Opening stockPurchasesFreight inAll of the given options

MGT101 Question # 11 of 15 ( 06:37:32 PM )Particulars Rs. Opening written down value of machine 1,00,000 Cost of new machine purchased during the year 50,000 Depreciation during the year 20,000 Closing written down value (WDV) ?Select correct option:Rs. 1,30,000Rs. 1, 50,000Rs. 1, 20,000Rs. 70,000

MGT101 Question # 12 of 15 ( 06:38:28 PM )What will be debited, If Mr. “A” started business with Rs. 2, 00,000.Select correct option:Capital accountCash accountMr. A’s accountBusiness account

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MGT101 Question # 13 of 15 ( 06:39:03 PM )In cost of goods sold statement the ‘cost of goods manufactured’ is equal to:Select correct option:Total factory cost + Opening work in process + Ending work in processTotal factory cost + Opening work in process – Ending work in processTotal factory cost - Opening work in process + Ending work in processEnding work in process +Total factory cost – Opening work in process

MGT101 Question # 14 of 15 ( 06:40:04 PM )What is nature of Capital account?Select correct option:DebitCreditExpensesLoss

MGT101 Question # 15 of 15 ( 06:40:34 PM )The amount charged to depreciation goes on declining in:Select correct option:Depreciation fixed methodAnnuity methodWritten-down value methodStraight line depreciation method

Question Excerpt

1.  What is the next step to Journalizing in Accounting cycle? A.

Recording

B. Posting C.

Balancing

D.

Analyzing

2.  Which of the following is an example of operating expense? A. Purchasing operating equipment B. Purchasing cleaning services C. Purchasing an investment in another company D. Purchasing a computer for the accounting office

3. 

(Amount of new provision + Amount of bad debts) < Amount of old provision then the resulting figure will be shown at: A. Debit side of Profit & Loss account B. Credit side of Profit & Loss account C.

Asset side of Balance Sheet

D.

Asset side of Balance Sheet

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4.  Sales to Mr. A of Rs. 336 have been debited to Mr. B account, this will be rectified by: A.

Debiting Mr. A’s account and crediting Mr. B’s account

B. Debiting Mr. B’s account and crediting Mr. A’s account C. Crediting both accounts D. Debiting both accounts

5.  Under the straight line method of depreciation: A. Amount of depreciation increases every year B. Amount of depreciation remains constant for every year C.

Amount of depreciation decreases every year

D.

None of the given options

6. 

Goods sold to Mr. Salman for RS. 6,000 have been forgotten to enter in books of accounts, this is an example of A.

Error of Omission

B. Error of Commission C.

Error of Principle

D. Error of Original entry

7.  Which of the following is NOT correct?

A. Decrease in Assets will be debit B. Decrease in Liabilities will be debit C. Decrease in Expenses will be credit D. Decrease in Revenue will be debit

8.  What will be the entry of disposal of an asset at cost price?

A.

Debit Fixed Asset Disposal and Credit Fixed Asset Cost

B. Debit Accumulated Dep. and Credit Fixed Asset Disposal C.

Debit Cash / Bank and Credit Fixed Asset Disposal

D.

None of the given options

9. 

If salaries are Rs. 2500, purchases Rs. 18,000 and rent Rs. 400; what will be administrative expenses? A. Rs.20, 900 B. Rs. 2,900 C. Rs. 2,500 D. Rs. 400

10.  In a single entry system, it is NOT possible to prepare:

A Trial balance

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. B. Statement of affairs C. Balance Sheet D. Sales accounts

11.  Cash book is a part of _________ . A. Voucher B. General Journal C. General Ledger D. Trial Balance

12.  The balance in drawings account is transferred to which of the following at the end of the year.

A. Capital account B. Shareholder account C. Cash account D. Expense account

13.  Which of the following particular is NOT included in journal voucher? A. Name of organization B. Bank receipt number C.

Debit amount

D. Credit amount

14.  Sale of goods to Amir is wrongly debited to Umair A/c instead ofAmir A/c. Both are debtors of business, this is an example of:

A.

Error of Omission

B. Error of Commission C.

Error of Principle

D. Error of Original entry

15.  Which of the following is CORRECT if depreciation is given in trial balance?

A. It means depreciation has already been deducted from concerned asset B. It will be shown as expense in income statement only C. It will not deduct from concerned asset in Balance Sheet D. All of the given options are correct

16.  Under the diminishing balance method, depreciation is calculated on:

A. The original cost B. The scrap value C.

Book value

D.

Both original cost and Scrap value

17.  Office salaries, advertising and sales commissions are the examples of:

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A.

Financial Expenses

B. Operating Expenses C. Marketing Expenses D.

Direct Expenses

18.  Which of the following assets are shown at written down value in balance sheet? A.

Current assets

B. Liquid assets C.

Floating assets

D. Fixed assets

19.  What will be debited, if business purchased Vehicle on cash?

A. Vehicle account B. Business account C. Cash account D. Business account