Accounting Notes

o Audit verification is an examination of books of account.

o Audit program helps auditor in performing audit.
o If 8% interest compounded quarterly then discount factor of 8 th year will be 4.01.
o Operating costing is done in services industry.
o Periodical audit is also called an interim audit.
o Current asset less current liabilities is equal working capital.
o Excess of sales over cost of sales is gross profit.
o Any liabilities which aroused due to certain events are called contingent liabilities.
o Audit on refund of advance tax is audit of receipt.
o Audit compulsory by law is statutory audit.
o Dividend approved by shareholder in annual general meeting.
o Which of the following is not permanent part of book of accounts? (Trial balance)
o Selling and distribution expenses are allocates on the basis of (factory cost).
o Capital expenditures are incurred (to obtain benefits in future period).
o Depreciation on fixed assets is charged on (on economic life of fixed assets).
o Which of the following is tangible assets furniture?
o Accounting period is usually is one year.
o Seller after discount to buyer for early payment (cash discount)
o Breakup value of shares is (net asset value).
o Planning in quantitative terms is (budgeting)
o Define modern digital computer
o At year end unsold goods are deducted from closing stock.
o ROI is the ratio between Return of investment.
o Rebate on bills discounted is income.
o An entry that effects more than one account (compound entry)
o How much duration does an accounting period have (one year)
o When the interest rate falls the bound worth is?
o The auditor is like a watch dog
o Audit done by employee business is called Management
o Share is forfeited on nonpayment of?
o Prepaid expenses are example of (current assets)
o What is important tool of cost planning? Budget.
o Item in balance sheet are presented on the basis of percentage of total assets.
o Risk and return comparison high risk and high return.
o Secret Reserve can create by Bank Financial Institution.
 English Portion
o Q. Identify the Synonymous of the given words
 Educible: brought out
 Gregarious: sociable
 Notorious: infamous
 Fated: predestined
o Identify Verb type
o 5. He wanted "to Know" Ans. Static Verb
o 6. He "passed" me this information to me Ans. Transitive Verb
o Identify name type of adverb
o He drank whole liquor "last" night Ans. Adverb of Time
o Highlight the kind of noun
o A clever trick was played by the "cat" Ans. Concrete Noun
o Identify the pronoun
o "Who" was knocking at the door? Ans. Interrogative Pronoun
o Put suitable conjunction.
o He exclaimed as ...... if he were very rich. (A) To (B) if (C) because (D) due to
o He tried to defeat his weariness..... Early in the morning (A) To awake (B) To be
awaken (C)
o To awake
o Pick right noun
o He achieved many "successes" due to herd work (A) Abstract noun (B) Common
noun
o Part B- Professional Test
o The formal application for retirement from the pensioner is obtained _____before
retirement (A) Three Months (B) Six Months (C) One year
o The pension payment order PPO must ideally be issued ______ before the date of
retirement of Government Servant (A) One Week (B) Fortnight (C) One MonthIn
PPRA rules 2004 the word " Emergency" means (A) Disaster Accidents (B) Natural
Calamities (C) Both A&B
o PPRA Rules 2004 are applicable on all Federal Government Agencies for all sorts of
competitive bidding (A) National (B) International (B) National and International
o Best return for money spent in terms of quality, timelines, price and reliability is called
(A) Value Chain (B) Value for Money (C) Supply Chain
o The initiation of pension papers should start ____ before a Government Servant is
due to retire. (A) One Month (B) Six Months (C) One Year
o A person would be called supplier who undertakes the supply (A) Goods (B) Services
(C) Works (D) All of these
o The responsibility and initiation of pension papers in case of Government Servants
holding posts in BPS-16 and above (A) Head of Department (B) Head Officer (C)
Officer Concerned himself
o The responsibility and initiation of pension papers in case of Government Servants
holding posts in BPS-1 to 15 rests with  (A) Head of Department (B) Head Officer
(C) Officer Concerned himself
o The service book should be got verified from the accounts officer after the ______ &
______ years of service of the official concerned. (A) 5&15 (B) 10&20 (C) 10&24 (D)
None of these
o The service book of an official should be maintained (A) Duplicate (B) Triplicate (C)
Single Original (D) None of these
o Contract executed under PPRA rules 2004 is ____ by law (A) Enforceable (B) Not
Enforceable (C) Partial Enforceable
o A bid is termed as "lower evaluated" if it has (A) low cost and price value (B) low cost
and conformity to evaluation criteria (C) low cost and conformity to evaluation criteria
and other bidding conditions (D) None of these
o The procurement of the same commodity from the same source without competition
and included enhancement of contracts is called (A) Petty Purchase (B) Repeat
Order (C) Direct Contracting (D) None of these
o Collusive practices among bidders to establish price at artificial and noncompetitive
levels fall under the (A) Best International Practices (B) Normal Company
Practices (C) Corrupt and Fraudulent practices
o The accounts of non-trading concerns are generally maintained according to (A)
Mercantile Law Accounting System (B) Cash Accounting System (C) Double Entry
Book Keeping System.
o The permanent, Continuing , and gradual shrinking in the book value of fixed asset
due to use, wear and tear  is known as (A) Depreciation (B) Appreciation (C)
Reduction
o The length of time covered by a set of periodic financial statement is referred to as 
(A) Natural Business year (B) Accounting period (C)Business Cycle
o Adjusting entries (A) Affect only income account statements (B) Affect only balance
sheet accounts (C) affect both income account statements and balance sheet
accounts
o Approach to preparing financial statements based on recognizing revenue when they
are earned  and matching expense to those revenues is (A) Cash basis accounting
(B) The matching principle (C) Accrual Basis Accounting
o Prepaid expenses, depreciation , accrued expenses, unearned revenues and
accurate revenues are example of (A) Items that require contra accounts (B) Items
that required adjusting (C) Asset and Equity (D) None of these
o Relevant factor in computing depreciation include (A) Cost (B) Salvage Value (C)
Useful life (D) All  of these
o Salvage Value is also called (A) Also called residual value (B) Scrap value (C) An
estimate of the asset Value at the end of its benefit period
o A budget is best described as (A) A formal statement of the company future
usually expressed in monetary  (B) A master control device (C) An informal
statement of the company future
o Preparing master budget is the responsibility of (A) Company CEO (B) Marketing
Department (C) A budget committee
o The usual budget period is (A) Annual period of 250 working days (B) Monthly period
separated into daily budgets (C) An Annual period separated in to Quarters and
monthly budgets.
o Under the diminishing balance method depreciation is calculated (A) Original Value
(B) Written down Value (C) Scrap Value  Ans. On Book Value
o The amount of depreciation charged on machinery will be debited on (A) Machinery
Account (B) Depreciation Account (C) Cash Account (D) None of these
o Examples of Non-Trading Concerns (A) Commercial Banks (B) Civil Hospital (C)
Joint Stock Company.
o Financial Budget include all the following except? (A) Sales Budget (B) Budget
Balance Sheet (C) A cash Budget. Ans. Sales budget
o Master budget included? Ans. Operating Budget and Financial Budget All of
these
o Cost which is first assigned to inventory is known as? (A) Period Cost (B) Product
Cost (C) General Cost Ans. Product Cost
o Selling and administration expense
o Balance sheet is prepared on? End of the year
o What is meant by deferred taxation? Fixed liability.
o Accounting equation is? Assets=Liability+Equity
o Government has fixed Pensioner retirement age on? 60 Years
o PPR advertising close? Before day submitting bidding
o Which method of depreciation is used by tax authorities? Straight Line Method
o Depreciation is similar in nature to?
o What is depreciation?
o Prepaid expense is?
o Depreciation is charged on which asset?
o Non-current asset?
o Salary paid to employees not recorded... What will be the effect?
o Sale on 10june 15000 sale on 25 June 15000, cash received on 7 July. What will be
the total sale on 30th June?
o Units in the middle on manufacturing process are called?
o Correct sequence of accounting cycle?
The final book/step of accounting cycle?
o Can the procuring agency issue the tender in local language
o In how many languages can tender be issued?
o What is the limit of amount for which tender must be issued in 2 local newspapers
and on official website?
o The type of account used for onward reporting to management?
o Under which international standards the Financial statements are prepared ?
o Which of the following is not operating expense?  A. Cost of good sold  B.
advertising  C. Freight out  D. None of these
o L.P.C within 15 days is ____?   A. Mandatory  B. Optional  C. Not required D. None
of these.
o Obligations of the businesses are known as ?(A) Assets (B) Liabilities,(C)Both A B
o Advance payment is?  (A) Receivable (B) payable (C) Bad debt
o Access of Current Assets over Current Liabilities is known as ? (A) Surplus
Capital (B) Capital (C) Surplus Assets
o Bank charges not recorded in cash book what will be procedure?
o The main object of an audit?
o The title of A/6sued by Council of ICAI is
o Which of the following is not true about opinion on financial statements?
The auditor should express an opinion on financial statements.
1_______ the bad weather, the outdoor party was rescheduled.
(A) Because of
(B) In order to
(C) Despite
(D) None of these

2. __________ losing the first match, our team has won the world cup.
(A) Because of
(B) In order to
(C) Despite
(D) None of these

3. You are wearing an army's uniform, but the __________ is missing.

(A) Epic
(B) Epoch
(C) Epithet
(D) None of these
 
4. University professors visit the website wwwsheirorg and ___________ the
data.
(A) Inform
(B) Appraise
(C) Apprise
(D) None of these

5. I am afraid __________ cats.

(A) To
(B) From
(C) Of
(D) None of these

6. We did not have __________ questions for the lecturer.

(A) Any
(B) Some
(C) None of these

7. Although its publicity has been ___, the film itself is intelligent, well-acted,
handsomely produced and altogether ___
(A) Tasteless … respectable
(B) Extensive … moderate
(C) Sophisticated … moderate
(D) None of these

8. Why are you still sleeping? you 'll be late. _ of bed now.
(A) Get up
(B) Get out
(C) Out
(D) None of these
Answer: ?
9. If I had money, I __________ it now.
(A) will purchase
(B) Would purchase
(C) Would have purchased
(D) None of these

10. The man __________ you met is an anchorperson.

(A) Who
(B) Whose
(C) Whom
(D) None of these

11. The woman __________ is standing by the table works in electronic media.
(A) Who
(B) Whose
(C) Whom
(D) None of these

12. If humans were totally deprived of sleep, they ________ hallucinations, anxiety,
coma, and eventually, death.
(A) Would experience
(B) Experience
(C) Would have experienced
(D) None of these

13. He is looking for accommodation __________ in flat or shared house.

(A) Both
(B) Either
(C) Until
(D) None of these

14. You can go neither by train __________ by bus.

(A) No
(B) Nor
 (C) Or
(D) None of these

15. Before designing a public park, the architect must __________ the public.
(A) Consider
(B) Considers
(C) Recognize
(D) None of these

16. When she was younger, she __________ five kilometers a day.
(A) Walked
(B) Had walked
(C) Has been walking
(D) None of these

17. To check for acidity, one had better ________ litmus paper.
(A) Use
(B) Using
(C) To use
(D) None of these

18. The house is large __________ is quite old-fashioned.

(A) And
(B) Or
(C) But
(D) None of these

19. We need to find __________ method to solve this problem.

(A) Other
(B) The other
(C) Another
(D) None of these

20. The students in our school are __________ in other schools.

(A) Smarter
(B) Smarter than
(C) Smarter than those
(D) None of these.
Answer: Smarter than those

Professional Test (80 Marks)

21. __________ is a systematic examination of the books and records or a business.
(A) Auditing
(B) Vouching
(C) Verification
(D) Checking
22. Management audit otherwise called as _______
(A) Final audit
(B) Efficiency audit
(C) Cost audit
(D) Cash audit

23. For which of the following organization Audit is optional

(A) Organization
(B) Joint stock company
(C) Partnership concern
(D) None of these

24. Auditor is ________

(A) A member of the company
(B) The agent of the of the company
(C) The agent of the central government
(D) An assistant to accountant

25. Prospectus is a document _________

(A) Containing the rules and regulations of the company
(B) Containing details about the manufacturing process of the company
(C) Containing details about the share capital of the company
(D) Containing the information of the sales

26. A sale of Rs. 50000 to Mr. A was entered as a sale to Mr. B. This is an example of
(A) Error of omission
(B) Error of commission
(C) Compensating error
(D) Error of principle

27. Preliminary expenses are the best example for _________

(A) Fictitious asset
(B) Intangible asset
(C) Wasting asset
(D) Floating asset

28. Capital reserves are created out of profits of __________

(A) A revenue nature
(B) A capital nature
(C) A secret reserve
(D) Contingency reserve

29. The main objects of investigation is _________

(A) To discover errors and frauds
(B) To prevent errors and frauds
(C) To verify statements
(D) All the above

30. The cost of the asset after the expiry of its useful life is called___________
(A) Written down value
(B) Residual value
(C) Expired value
(D) None of the given options
31. Excess of debit over credit is called:
(A) Opening balance
(B) Closing balance
(D) Debit balance
(D) Credit balance

32. Manufacturing overhead cost would include

(A) A marketing cost related to selling the product
(B) The salary of production line supervisor
(C) The chief executive officer salary
(D) Research and development cost of a new product

33. The distinction between revenue account and capital account is necessary for the
preparation of
(A) Final accounts
(B) Receipt and payment account
(C) Cash flow statement
(D) Funds flow statements

34. Depreciation of machinery will be shown in the profit & loss account under the head of
(A) Selling expense
(B) Administrative Expenses
(C) Marketing expense
(D) Financial expense

35. The accounting system, in which accounting entries are made on the basis of amount
having become due for payment or receipt is known as:
(A) Cash system of accounting
(B) Current accounting period
(C) Accrual system of accounting
(D) None of the given options

36. Assets which have no physical existence and which cannot be seen, touched or felt are
called
(A) Current assets
(B) Tangible assets
(C) Fictitious assets
(D) Intangible assets

37. Overhead cost is the total of ____________

(A) All indirect costs
(B) All direct costs
(C) Indirect and direct costs
(D) All specific costs

38. Cost of sales plus profit is __________

(A) Selling price
(B) Value of finished product
(C) Value of goods produced
(D) Value of stocks

39. Depreciation of plant and machinery is a part of ___________

(A) Factory overhead
(B) Selling overhead
(C) Distribution overhead
(D) Administration overhead
40. The ratios which reflect managerial efficiency in handling the assets is__________
(A) Turnover ratios
(B) Profitability ratios
(C) Short term solvency ratio
(D) Long term solvency ratio

41. Return on equity is also called

(A) Return on investment
(B) Gross profit ratio
(C) Return on shareholders’ fund
(D) Return on net worth

42. ______ involves the sale of used securities from one investor to another
(A) Primary market
(B) Secondary market
(C) Tertiary market
(D) None of these

43. The process of planning and managing a firm's long-term investments is called:
(A) Planning Process
(B) Capital Structure
(C) Capital Budgeting
(D) Managing Process

44. An equal increase in both current assets and current liabilities would
(A) No affect on current ratio
(B) Increase current ratio
(C) Decreases current ratio
(D) None of these

45. _________are short-term, temporary investments that can be readily converted into cash.
(A) Marketable securities
(B) Cash equivalents
(C) Treasury bills
(D) All of the given options

46. When bank statement shows a debit balance, it means?

(A) Overdraft balance as per cash book
(B) Unfavorable balance as per cash book
(C) Unfavorable balance as per bank book
(D) None of the above

47. The accounting system, in which accounting entries are made on the basis of amount
having become due for payment or receipt, is known as?
(A) Cash system of accounting
(B) Current accounting period
(C) Accrual system of accounting
(D) None of the given options
48. Test of control is not associated with
(A) Existence of control
(B) Effectiveness of control
(C) Continuous of control
(D) Designing of control

49. The comparison of net profit with the sales of the same year is
(A) Vertical comparison
(B) Horizontal comparison
(C) None of these

50. The term organization means

(A) Management of the business
(B) Accomplishment of goals or objectives by all means
(C) The process of assigning duties to individuals to achieve goals or objectives

51. When shares are forfeited, the share capital account is debited with the
(A) Nominal value of share
(B) Paid up value of share
(C) Called up value of share
(D) None of these

52. Two companies X co and y co go into liquidation and a new co z is formed then it is
known as--------------
(A) Absorption
(B) External reconstruction
(C) Amalgamation
(D) None of these

53. Financial accounting reports are prepared primarily:

(A) To value the property of the company
(B) To show managers the results of their departments
(C) To help people make decisions about resource allocation
(D) To show the value of shares in the company

54. Stock in trade is valued

(A) At cost price price
(B) At market price
(C) At cost or market whichever is less
(D) At cost less market price

55. Share may be issued

(A) At par
(B) At discount
(C) At premium
(D) All of these

56. Current ratio is

(A) Short term solvency ratio
(B) Long term solvency ratio
(C) Profitability ratio
(D) Turnover ratio
57. The ratio which shows the proportion of profits retained in the business out of the current
year's profits is__________
(A) Retained earnings ratio
(B) Pay out ratio
(C) Earnings per share
(D) Price earnings ratio

58. Trading & Profit & loss account and balance sheet is prepared from
(A) Ledger balance
(B) Ledger balances, cash and bank balances
(C) Cash book and bank book
(D) Trial balance

59. The amount of resources supplied by the owner in business is called:

(A) Investments
(B) Assets
(C) Capital
(D) Reserves

60. The process of recording the economic effects of business transactions in a book of
(A) original entry is known as which of the following?
(B) Double entry system
(C) Journalizing
(D) Debit
(E) Posting

61. Partners in Pakistan can today be fixed at the following numbers

(A) 20
(B) 50
(C) 75
(D) None of these

62. 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

63. Any expenditure incurred to increase the profit earning capacity of the concern is a
Revenue expenditure
(A) Capital expenditure
(B) Deferred revenue expenditure
(C) None of these

64. Credit terms identify what ?

65. Which of the following options indicate how quickly accounts receivables are converted
into cash?
(A) Accounts receivable turnover
(B) Days to collect accounts receivable
(C) Working capital turnover
(D) Total assets turnover
66. Which of the following principle deals with the valuation and recording of asset at cost
(A) Entity principle
(B) Matching principle
(C) Cost principle
(D) Dollar currency principle

67. The main electronic component used in first generation computers was
(A) Transistors
(B) Vacuum Tubes and Valves
(C) Integrated Circuits
(D) None of above

68. Which of the following is the most powerful computers?

(A) Mainframe Computer
(B) Mini Computers
(C) Micro Computers
(D) Super Computers

69. Assembly language started to be used from

(A) First generation computers
(B) Second generation computers
(C) Third generation computers
(D) Fourth generation computers

70. The auditor is most likely to examine related party transactions very carefully while vouching
(A) Credit sales
(B) sales returns
(C) Credit purchases
(D) Cash purchases

71. A shareholder in a company

(A) Can be its debenture holder
(B) Cannot be its debenture holder
(C) Can be member of board of directors
(D) Can be liable to unlimited entry

72. Production function refers

(A) Cost to input
(B) Wages to profit
(C) Cost to output
(D) Input to output

73. The board of directors shall appoint first auditor of a company ___________
(A) within one month of completion of capital subscription state of the company
(B) within one month of the promotion of the company
(C) within one month of the commencement of the business of the company
(D) within one month of incorporation of the company

74. Real accounts are related with

(A) Assets
(B) Expenses and incomes
(C) Customers and creditors
(D) None of these
75. Which of the following is the acronym for GAAP?
(A) Generally Applied Accountability Principles
(B) General Accounting Assessment Principles
(C) Generally Accepted Accounting Principles
(D) General Accepted Assessment Principles

76. Which of the following is not among the five main kinds of current asset?
(A) Cash and equivalents
(B) Deferred income
(C) Accounts receivable
Prepaid expenses

77. The audit is not a necessary requirement for which of the following companies.
(A) Limited companies
(B) Corporation
(D) Sole proprietorship
(D) Partnerships

78. Which of the following feature is shown by the income statement for a
merchandising company?
(A) Gross profit
(B) Cost of goods sold
(C) sales revenue section
(D) All of the given options

79. Which one of the following is temporary account?

(A) Cash
(B) Accounts receivables
(C) Insurance expense
(D) Accounts payable

80. An entry that affects more than oe accounts is known as

(A) Journal entry
(B) Composed entry (compound entry)
(C) Adjusting entry
(D) Reversing entry

81. A bank offers 20% compounded monthly. What would be the effective annual rates of
return?
(A) 20.00%
(B) 20.50%
(C) 21.00%
(D) 21.99%

82. The discount account is a

(A) Personal account
(B) Real account
(C) Nominal account
(D) Asset account

83. Direct expenses are charged on

(A) Balance sheet
(B) Profit & loss account
(C) Trading account
(D) None of these

84. Heavy expenditures on advertisement of a new product is a

(A) Capital expenditure
(B) Revenue expenditure
(C) Deffered revenue expenditure
(D) None of these

85. Which one of these is considered as a non cash item?

(A) Inventory
(B) Accounts payable
(C) Accounts receivable
(D) Depreciation

86. Costing stock appearing in trial balance will be taken to

(A) Trading account only
(B) Balance sheet only
(C) Trading account and balance sheet
(D) Profit and loss account only

87. Dividends are usually paid on

(A) Authorized capital
(B) Issued capital
(C) Paid up capital
(D) None of these

88. The current account of a partner

(A) Always has a credit balance
(B) Always has a debit balance
(C) Always has no balance
(D) May have a debit balance ar credit balance

89. Wages are paid to a labur, who was engaged in production activities can be termed as
(A) Direct cost
(B) Indirect cost
(C) Sunk cost
(D) imputed cost

90. The ratios which reveal the final result of the managerial policies and performance is
(A) Turnover ratios
(B) Profitability ratios
(C) Short term solvency ratio
(D) Long term solvency ratio

91. Sales Rs. 25000 Variable cost Rs. 8000 Fixed cost Rs. 5000 Break even sales in value
(A) Rs. 7936
(B) Rs. 7353
(C) Rs. 8333
(D) Rs. 9090

92. Which of the following term refers to the use of debt financing?
(A) Operating Leverage
(B) Financial Leverage
(C) Manufacturing Leverage
(D) None of these

93. Which of the following statement shows assets, liabilities and net worth as on a specific
date?
(A) Income Statement
(B) Balance Sheet
(C) Owner’s Equity Statement
(D) Cash Flow Statement

94. Which one of the following is not a form of business organization?

(A) Sole proprietorship
(B) Partnership
(C) Joint stock company
(D) Co-operative society

95. In which type of business, all owners share in gains ans losses and all have unlimited
liabilities for all business debts?
(A) Sole proprietorship
(B) General partnership
(C) Limited partnership
(D) Corporation

96. A borrower is able to pay Rs. 40000 in 5 years. Given a discount rate of 12 percent. What
amount of money the lender should lend?
(A) Rs. 14,186
(B) Rs. 18,256
(C) Rs. 22,697
(D) Rs. 28,253

97. Rule of 72 for finding the number of periods is fairly applicable to which of the following
range of discount rates?
(A) 2% to 8%
(B) 4% to 25%
(C) 5% to 20%
(D) 10% to 50%

98. Which one of the following is the rate of return that firm’s creditors demand on new
borrowing?
(A) Cost of debt
(B) Cost of preferred stock
(C) Cost of common stock
(D) Cost of retained earnings

99. The difference between an investments market value and its cost is called ----------- of the
investment?
(A) Net present value
(B) Economic value
(C) Book value
(D) Future value
100. A model which makes an assumption about the futue growth of dividends is known as
(A) Dividend price model
(B) Dividend growth model
(C) Dividend policy model
(D) All of these
D
FPSC Senior Auditors Paper 2016, 6th July.
1. National income is
2. Depreciation arises
3. Debenture is
4. Audit is a branch of
5. Asset=Liability + Capital Equation
6. Goodwill is(asset,liablty,expenditur)
7. qualification of auditor under sec26(2)

.............................................................................................
8. I hope i well get______the examination.
A. on b. upon c. After d. Through
9. I cannot give you_______money.
A. Some b. Any c. Little d. A few
10. I am a student of of _______ english literature.
A. The b. A c. An d. No article
11. He is junior ________ me both in age and rank.
A. Of b. To c. Off d. As to
12. Many a man______attending the ceremony
A.was b. Were c. Have been d. Has
13. He is a _______person.
A.coward b.Cowards c.cowardly d.co-wardly
14. No sooner did he reach home________his brother arrived.
A.then b.than c.when d.that
15.scarcely had i reached the examinition center_______the paper started.
A.then b. Than c. When d.that
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...........................................................................................
16. If i were he,i ............. tease him.
a will b would c shall d should
.
17.he said gos helps ........ those who help them selves
A helps b helped c help .....
.
18. Wake up early lest you..... miss your flight
A shall b will c should d may
.
19. He with all his friends .......... studying
a is b are c were d has
.
20..if i had worked hard i ............ succeded in test .
a would b will c had d would have
.
21 errors of commission arises when
A. Fundamentally incorrect entry
b. Transaction recorded incorrect
c. transaction omitted
D. Non of the above
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...............................................................................................
22. Difference of Asset and liabilties are“ Equity ”
22. Asset which are untouchabe and unseen but has value are “Intangible“
23The goods sale to A of Rs. 50,000，transaction recorded as aginst B instead of A. What type of
this omission are “ omission principal”
24. Whuch of the following are not revenue expenditure
25. Who has the authority to remove the first director of the company before the date of expiration “
bord of directors”
26. the internal audit are “detailed audit ”
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............................................................................................
27. Debenture is asset, liability or capital
28. Auditing is social science natural or abstract
(Sent by Afxha Shafiq)
...............................................................................................
29. In misstatement the fraud wich is most difficult to find is.,??
30. Balnce sheet audit includes?
31. Current liabilty payable within ??
32. Heavy advertizing expns new product is??
33. Audit in depth also known as.?
34. Cost of goods sold plus oprating expense is ????
.
35. Deferred Taxation is:
(a) Fixed asset
(b) Fixed liabilities
(c) Part of Owners Equity.
.
36. Stratified audit sample means:
a. Randomly selected items for audit
b. Purposively selected items for audit
c. Items carefully selected from each group
.
37.Income Tax rates are the same for:
a. Limited Companies
b. Banking Companies
c. None of above
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38. 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
.
39. The maximum number of partners in Pakistan can be fixed at the following:
(a) 20
(b) 50
(c) 75
(d) None of these
.40. Balance sheet is always prepared:
(a) For the year ended
(b) As on a specific date
(c) None of these
.41. Process Cost is very much applicable in:
(a) Construction Industry
(b) Pharmaceutical Industry
(c) Air line company
(d) None of these
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42. Accounting principles are generally based on
(a) Practicability
(b) Subjectivity
(c) Convenience in recording
.
46. A prospectus for share can be issued only by
(a) A public company
(b) A private company
(c) None of these.
.
47. Net income plus operating expense is equal to
(a) Net sale
(b) Cost of good available for sales
(c) Cost of good sold
(d) Gross profit

A systematic way to maintain the books of accounts is called_________?

A. Accountancy
B. Economics
C. Book Keeping
D. Auditing
An Art of reading, classifying & Summarizing of accounts in a systematic way is
called__________?

A. Accounting
B. Accountancy
C. Auditing
D. Book Keeping

The maintenance of accounts in a systematic way is called__________?

A. Accounting
B. Reading
C. Book Keeping
D. Auditing

Goods Return by the customer are termed as :

A. Purchase return
B. Customer return
C. Sales return
D. Inventory return

Modern system of book keeping is called______________?

A. Double entry system

B. American system
C. Single entry system
D. Italic system

The person to whom goods are sold on credit is called___________?

A. Buyer
B. Seller
C. Debtor
D. Creditor

Double entry means______________?

A. Entry in two sets of books

B. Entry at two ends
C. Entry at two dates
D. Entries for two aspects of the transaction

Discount received is a/an:

A. Asset
B. Expense
C. Liability
D. Revenue

Obligation of the Business is known as___________?

A. Labilités
B. Revenues
C. Expansés
D. Asses

The amount invested by the proprietor to start the business is called:

A. Capital
B. Business
C. Drawings
D. All of them

. Cash discount is provided on _______________?

A. Purchases
B. Prompt payment
C. Sales
D. Sales return

Goods return to supplier are known as:__________?

A. Merchandise return
B. Purchase return
C. Return inwards
D. Sales return

The excess of current assets over current liabilities is called:

A. Working Capital
B. Circulating capital
C. Fixed capital
D. Trading capital

When goods, in which business deals are sold, it is called___________?

0

A. Purchases
B. Return inward
C. Sales
D. Return outwards

Sales return is also known as____________?

0

A. Return received
B. Return Payed
C. Return inward
D. Return outward
(more…)

reduction in price is called:

0

A. Paid price
B. Invoice price
C. Book price
D. Discount

Cash brought by the owner to start business is called__________?

2

A. Capital
B. Loan
C. Drawing
D. None of these

The concession received on the price of defective goods is called:

0

A. Discount
B. Cash discount
C. Allowance
D. Trading discount

In support of business transaction, any written evidence is called ___________?

0

A. Discount
B. Voucher
C. Allowance
D. Price

Building and furniture are called ____________?

0
A. Current asset
B. Fictitious asset
C. Tangible asset
D. Fixed assets

For the business, capital is ____________?

8

A. Expense
B. Liability
C. Assets
D. All of them

When owner withdraw cash for its private use, it is called ___________?
0

A. Profit
B. Income
C. Expense
D. Drawing

Assets having physical existence are called ___________?

0

A. Current asset
B. intangible asset
C. Tangible asset
D. Liquid asset

The assets which have some market value are called ____________?
0

A. Fixed asset
B. Quick asset
C. Fictitious assets
D. Real assets

The assets which come into existence upon the happening of a certain event are
called__________?
0

A. Contingent assets
B. Fixed assets
C. Fictitious assets
D. Quick assets

Income earned but not received is called ____________?

3

A. Fictitious assets
B. Quick asset
C. Real asset
D. Outstanding asset

Debts which are payable in the course of a month are called _____________?
0

A. External liabilities
B. Fixed liabilities
C. Current liabilities
D. Liquid Liabilities

The unsold goods are ______________?

0

A. Equity
B. Sale return
C. Inventory
D. Purchases

The systems of accounting are _____________?

1

A. Two
B. Three
C. Five
D. Six
(more…)

A sale of Rs. 50.000 to A was entered as a sale to B. This is an example of____________?

0

A. Error of omission
B. Error of commission
C. Compensating error
D. Error of principle

.
Goods sent on approval basis’ have been recorded as ‘Credit sales’. This is an example
of____________?
1

A. Error of principle
B. Error of commission
C. Error of omission
D. Error of duplication

Institute of Chartered Accountants of Pakistan was established in____________?

0

A. 1949
B. 1956
C. 1961
D. 1972

Trial balance is prepared to check accuracy of_______________?

0

A. Ledger accounts balances

B. Balance sheet balances
C. Income statement balances
D. Cash flow statement balances

If a transaction is completely omitted from the books of accounts, will it affect the
agreement of a trial balance?
0

A. Yes
B. No
C. Transactions can’t be omitted
D. none of these

________ is the common base for preparing a trial balance?

0

A. Ledger accounts
B. General Journal
C. Specialized journals
D. Balance sheet

Which of the following is true about a trial balance?

0
A. It lists down the balances of accounts
B. It lists down the balances of a balance sheet
C. It is a kind of financial statement
D. It is not a part of accounting cycle

Debit balance = Credit balance in a trial balance indicates that:

0

A. No error in recording transactions

B. No error in posting entries to ledger accounts
C. Account balances are correct
D. Mathematically Capital+Liabilities=Assets

Trial balance is commonly prepared?

0

A. Frequently during the year

B. At the end of an accounting period
C. At the end of a month
D. At the end of a year

Which of the following will affect the agreement of a trial balance?

0

A. Complete omission of a transaction

B. Partial omission of a transaction
C. Error of principle
D. Compensating errors

If debit balances = credit balances, trial balance only shows or check the ____________ and
it does not indicate that no errors were made during recording and posting.
0

A. Arithmetic accuracy
B. Errors of commission
C. Omissions of economic events
D. Understatements of balances

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