Certified Public Accountant (CPA)

American Institute of Certified Public Accountants (AICPA)

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Fani Warraich MANAGEMENT SCIENCES   -   Financial Accounting

Double entry book-keeping was fathered by?

Fani Warraich MANAGEMENT SCIENCES   -   Financial Accounting

Funds Flow Statement and sources and application statement are:

Fani Warraich

Good

Fani Warraich MANAGEMENT SCIENCES   -   Financial Accounting

Depreciation in spirit is similar to

Fani Warraich

option c is not correct but B

Fani Warraich MANAGEMENT SCIENCES   -   Financial Accounting

Balance Sheet is always prepared

Fani Warraich MANAGEMENT SCIENCES   -   Financial Accounting

In Insurance, the following Profit and Loss Accounts are prepared

Fani Warraich MANAGEMENT SCIENCES   -   Financial Accounting

Quick Ratio can be computed as under

The quick ratio is calculated by dividing a company's current liabilities by the value of its "quick" assets. Cash and assets that may be turned into cash quickly, often within 90 days, are referred to as "quick assets."
Fani Warraich MANAGEMENT SCIENCES   -   Financial Accounting

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

Fani Warraich MANAGEMENT SCIENCES   -   Financial Accounting

Consolidation of subsidiary accounts in the balance sheet of a unlisted Holding company is at present in Pakistan

Fani Warraich MANAGEMENT SCIENCES   -   Financial Accounting

Retained earning is synonymous to

Fani Warraich MANAGEMENT SCIENCES   -   Financial Accounting

The requirements of an audit report for a Banking Company in Pakistan is under

Fani Warraich

b and c are same. why?

Fani Warraich MANAGEMENT SCIENCES   -   Financial Accounting

Deferred Taxation is part of

Fani Warraich MANAGEMENT SCIENCES   -   Financial Accounting

Investment Corporation of Pakistan follows

Fani Warraich MANAGEMENT SCIENCES   -   Financial Accounting

Directors Report is mandatory in respect of financial report constituent of

Fani Warraich MANAGEMENT SCIENCES   -   Financial Accounting

Every limited Company in Pakistan is required by law to include the following along with financial reports

Fani Warraich MANAGEMENT SCIENCES   -   Financial Accounting

Cash budget excludes the following

Fani Warraich MANAGEMENT SCIENCES   -   Financial Accounting

NGOs are legally required to

Fani Warraich

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Fani Warraich

Testing comments on mobile

Fani Warraich

Reading mcqs under main subject

Jamal Khan MANAGEMENT SCIENCES   -   Financial Accounting

Operating Profit is

Muhammad Tayyab Ikhlas MANAGEMENT SCIENCES   -   Financial Management

Sources of funds can be increased by

Muhammad Tayyab Ikhlas MANAGEMENT SCIENCES   -   Taxation Management

For which taxpayer Income Tax rates are the same

Muhammad Tayyab Ikhlas MANAGEMENT SCIENCES   -   Taxation Management

If a firm has paid super-tax, its partners may follow any one of the following behaviors

Muhammad Tayyab Ikhlas MANAGEMENT SCIENCES   -   Taxation Management

Income Tax is levied on

Muhammad Tayyab Ikhlas MANAGEMENT SCIENCES   -   Audit & Assurance

An auditor is liable for his annual audit of accounts of

Muhammad Tayyab Ikhlas MANAGEMENT SCIENCES   -   Audit & Assurance

Normally audit of a bank is conducted through

Muhammad Tayyab Ikhlas MANAGEMENT SCIENCES   -   Audit & Assurance

Internal Control is totally synonymous with

Muhammad Tayyab Ikhlas MANAGEMENT SCIENCES   -   Audit & Assurance

What does stratified audit sample means

Muhammad Tayyab Ikhlas MANAGEMENT SCIENCES   -   Audit & Assurance

Verification includes

Bashir Farooqi MANAGEMENT SCIENCES   -   Financial Accounting

Books of original entry are called

Bashir Farooqi MANAGEMENT SCIENCES   -   Financial Accounting

For preparing balance sheets prepaid expenses are shown as part of

Bashir Farooqi MANAGEMENT SCIENCES   -   Financial Accounting

Unpaid and unrecorded expenses are called

Bashir Farooqi MANAGEMENT SCIENCES   -   Financial Accounting

Amount, cash, or other assets removed from business by owner is called

Bashir Farooqi MANAGEMENT SCIENCES   -   Financial Accounting

Under the diminishing balance method, depreciation amount is

Bashir Farooqi MANAGEMENT SCIENCES   -   Financial Accounting

Users of accounting information includes

Bashir Farooqi MANAGEMENT SCIENCES   -   Financial Accounting

The business form(s) in which the owner(s) is (are) personally liable is (are) the

Bashir Farooqi MANAGEMENT SCIENCES   -   Financial Accounting

The investment of personal assets by the owner

Bashir Farooqi MANAGEMENT SCIENCES   -   Financial Accounting

All of the following are forms of organizations except

Bashir Farooqi MANAGEMENT SCIENCES   -   Financial Management

Economic resources of a business that are expected to be of benefit in the future are referred to as

Bashir Farooqi MANAGEMENT SCIENCES   -   Financial Management

An owner investment of land into the business would

Bashir Farooqi MANAGEMENT SCIENCES   -   Financial Accounting

A cash purchase of supplies would

Bashir Farooqi MANAGEMENT SCIENCES   -   Financial Accounting

An owner investment of each into the business would

Bashir Farooqi MANAGEMENT SCIENCES   -   Financial Accounting

The payment of rent each month for office space would

Bashir Farooqi MANAGEMENT SCIENCES   -   Financial Accounting

Real accounts are related to

Bashir Farooqi MANAGEMENT SCIENCES   -   Financial Accounting

Which one of the following accounts would usually have a debit balance?

Bashir Farooqi MANAGEMENT SCIENCES   -   Financial Accounting

Quick assets include which of the following?

Muhammad Tayyab Ikhlas MANAGEMENT SCIENCES   -   Financial Accounting

Accounting principles are generally based on the principle of

Muhammad Tayyab Ikhlas MANAGEMENT SCIENCES   -   Financial Accounting

Rent paid to the land lord should be credited to

Muhammad Tayyab Ikhlas MANAGEMENT SCIENCES   -   Financial Accounting

In the event of dissolution of a partnership firm the provision for doubtful debts is transferred to

Muhammad Tayyab Ikhlas MANAGEMENT SCIENCES   -   Financial Accounting

A prospectus for share can be issued only by

Muhammad Tayyab Ikhlas MANAGEMENT SCIENCES   -   Financial Accounting

Preliminary expenses are

Muhammad Tayyab Ikhlas MANAGEMENT SCIENCES   -   Financial Accounting

The valuation of closing stock is at

As per materiality concept, on account of playing safe, accountant must record assets at lower of either market or cost price.
Fani Warraich

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Muhammad Tayyab Ikhlas MANAGEMENT SCIENCES   -   Financial Accounting

A liability in the amount of Rs. 500/- is paid in cash which of the fallowing is true

Muhammad Tayyab Ikhlas MANAGEMENT SCIENCES   -   Financial Accounting

Which one of the following account normally have a credit balance?

Muhammad Tayyab Ikhlas MANAGEMENT SCIENCES   -   Financial Accounting

A company collected one year’s rent in advance on October 1st ,2022 the entries Rs 1200 was credited to unearned revenue account the adjusting entry at the December 31,2022 year ended would include

Muhammad Tayyab Ikhlas MANAGEMENT SCIENCES   -   Financial Management

Quick Asset includes which of the fallowing

Muhammad Tayyab Ikhlas MANAGEMENT SCIENCES   -   Financial Accounting

When a small stock dividend is declared which of the fallowing accounts is credited

Muhammad Tayyab Ikhlas MANAGEMENT SCIENCES   -   Financial Accounting

An advantages of the partnership form of business organization is its

Diginy Dash MANAGEMENT SCIENCES   -   Financial Accounting

In balance sheet accumulated loss of company shown as

Diginy Dash MANAGEMENT SCIENCES   -   Financial Accounting

Double Entry Book Keeping was fathered by

Fani Warraich MANAGEMENT SCIENCES   -   Audit & Assurance

Which of the following best describes the primary objective of an external audit?

External audits aim to provide independent assurance to stakeholders regarding the reliability of financial statements.
Fani Warraich MANAGEMENT SCIENCES   -   Audit & Assurance

Which of the following is a key responsibility of the auditor during the planning phase of an audit engagement?

During the planning phase, auditors assess the risks of material misstatement in the financial statements and develop an audit strategy to address those risks.
Fani Warraich MANAGEMENT SCIENCES   -   Audit & Assurance

Which of the following sampling methods is commonly used in audit testing to select items for examination?

Stratified sampling involves dividing the population into subgroups and then selecting samples from each subgroup, ensuring representation across different characteristics.
Fani Warraich MANAGEMENT SCIENCES   -   Audit & Assurance

Which of the following types of audit opinion indicates that the financial statements are free from material misstatement?

An unqualified opinion, also known as a clean opinion, indicates that the financial statements present fairly, in all material respects, the financial position, results of operations, and cash flows of the entity.
Fani Warraich MANAGEMENT SCIENCES   -   Audit & Assurance

Which of the following would NOT be considered a control deficiency in internal controls?

Related-party transactions may or may not represent control deficiencies, depending on their nature and the adequacy of disclosure in the financial statements.
Fani Warraich MANAGEMENT SCIENCES   -   Audit & Assurance

Which of the following audit procedures is designed to test the existence and completeness assertion for inventory?

Observing the physical inventory count is a substantive procedure commonly used to test the existence and completeness of inventory.
Fani Warraich MANAGEMENT SCIENCES   -   Audit & Assurance

In the context of audit sampling, what is meant by the term "sampling risk"?

Sampling risk arises from the possibility that the sample selected for testing may not accurately represent the characteristics of the entire population.
Fani Warraich MANAGEMENT SCIENCES   -   Audit & Assurance

Which of the following best describes the purpose of analytical procedures in an audit engagement?

Analytical procedures involve comparing financial information with expectations derived from other sources to identify areas that may require further investigation.
Fani Warraich MANAGEMENT SCIENCES   -   Audit & Assurance

Which of the following types of audit evidence is generally considered the most reliable?

Documentary evidence obtained from independent third parties is often considered the most reliable form of audit evidence due to its objectivity and reliability.
Fani Warraich MANAGEMENT SCIENCES   -   Audit & Assurance

What is the primary purpose of issuing an auditor's report?

The primary purpose of an auditor's report is to provide stakeholders with the auditor's opinion on whether the financial statements are presented fairly, in all material respects, in accordance with the applicable financial reporting framework.
Fani Warraich MANAGEMENT SCIENCES   -   Financial Accounting

Which of the following statements is NOT true about the relationship between the chronological journal and the general journal?

While the chronological journal captures transactions in real-time, it's not a mandatory step. Transactions can be directly recorded in the general journal with proper explanations.
Fani Warraich MANAGEMENT SCIENCES   -   Financial Accounting

A company mistakenly recorded a purchase of inventory for $10,000 as an expense. How can a strong internal control system help identify this error most effectively?

egregation of duties (b) ensures the purchasing department raises a purchase order, which the accounting department uses to record the inventory purchase. This prevents the accidental recording of the purchase as an expense. While bank reconciliations (a) and general ledger reviews (d) are important controls, they might not catch this specific error.
Fani Warraich MANAGEMENT SCIENCES   -   Financial Accounting

Company A uses a single general journal for all transactions, while Company B utilizes a sales journal and a purchases journal. Which company is likely to be more efficient in recording transactions?

Special journals like sales and purchases journals (b) group similar transactions, reducing repetitive entries and saving time. This is particularly beneficial for companies with high transaction volumes.
Fani Warraich MANAGEMENT SCIENCES   -   Financial Accounting

A company has a trial balance that balances perfectly. Does this guarantee the absence of errors in the journals and general ledger?

A balanced trial balance (a) only indicates equal total debits and credits. Transposition errors (e.g., $125 instead of $251) or recording an expense as an asset with the same amount wouldn't affect the balance (b).
Fani Warraich MANAGEMENT SCIENCES   -   Financial Accounting

A company pays rent for a full year upfront on January 1st for $12,000. How should this transaction be recorded in the journals?

Since the rent benefits the entire year, it's treated as a prepaid expense (b). Option (c) wouldn't capture the full cost upfront. The answer depends on the company's policy (d) for handling prepaid expenses. Some companies might choose to record monthly rent expense based on an accrual basis.

Contributor(5)

Fani Warraich
Bashir Farooqi
Jamal Khan
Muhammad Tayyab Ikhlas
Diginy Dash