Home
Mcqs
Quizes
Q&A
Past Paper
blog
Spaces
Join Now
Sign in
Certified Public Accountant (CPA)
American Institute of Certified Public Accountants (AICPA)
6 contributor - 1 Folowers
Updates
Post
Question
Mcqs
Past Paper
Fani Warraich
MANAGEMENT SCIENCES
-
Financial Accounting
Double entry book-keeping was fathered by?
A. F.W.Taylor.
B. Lucas Pacioli.
C. Henry Fayol.
D. Edward Saeed.
Fani Warraich
MANAGEMENT SCIENCES
-
Financial Accounting
Funds Flow Statement and sources and application statement are:
A. Antagonistic.
B. Synonymous.
C. None of these.
D. All of these.
Fani Warraich
MANAGEMENT SCIENCES
-
Financial Accounting
Depreciation in spirit is similar to
A. Depletion.
B. Depression.
C. Amortization.
D. Deletion.
Fani Warraich
MANAGEMENT SCIENCES
-
Financial Accounting
Balance Sheet is always prepared
A. For the year ended.
B. As on a specified date.
C. Till date.
D. None of these.
Fani Warraich
MANAGEMENT SCIENCES
-
Financial Accounting
In Insurance, the following Profit and Loss Accounts are prepared
A. Consolidated for Fire, Marine, and Accidents etc..
B. Separate for Fire, Marine, and Accidents etc.
C. Partially consolidated for Governments.
D. None of these.
Fani Warraich
MANAGEMENT SCIENCES
-
Financial Accounting
Quick Ratio can be computed as under
A. Quick assets / Quick liabilities .
B. Quick assets / Current liabilities.
C. Current assets / Current liabilities.
D. None of these.
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
A. 10% of the total value.
B. Rupee 0.
C. Half of the total cost.
D. None of these.
Fani Warraich
MANAGEMENT SCIENCES
-
Financial Accounting
Consolidation of subsidiary accounts in the balance sheet of a unlisted Holding company is at present in Pakistan
A. Voluntary.
B. Compulsory.
C. Not required.
D. None of these.
Fani Warraich
MANAGEMENT SCIENCES
-
Financial Accounting
Retained earning is synonymous to
A. Net profit of the year.
B. Accumulated profit and loss.
C. Net loss of one year.
D. None of these.
Fani Warraich
MANAGEMENT SCIENCES
-
Financial Accounting
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, 2017.
C. Under the Companies Ordinance, 2017.
D. A & B above.
Fani Warraich
MANAGEMENT SCIENCES
-
Financial Accounting
Deferred Taxation is part of
A. Fixed assets.
B. Variable assets.
C. Owner's equity.
D. Creditors account.
Fani Warraich
MANAGEMENT SCIENCES
-
Financial Accounting
Investment Corporation of Pakistan follows
A. Open-end mutual funds.
B. Closed-end mutual funds.
C. Partial-ended mutual funds.
D. None of these.
Fani Warraich
MANAGEMENT SCIENCES
-
Financial Accounting
Directors Report is mandatory in respect of financial report constituent of
A. Limited compnay.
B. Partnership.
C. Firm.
D. None of these.
Fani Warraich
MANAGEMENT SCIENCES
-
Financial Accounting
Every limited Company in Pakistan is required by law to include the following along with financial reports
A. Chairman's review.
B. Cost analysis.
C. Ratio analysis.
D. Financial analysis.
Fani Warraich
MANAGEMENT SCIENCES
-
Financial Accounting
Cash budget excludes the following
A. Cash items.
B. Non-Cash items.
C. Purchase on Credit items.
D. None of these.
Fani Warraich
MANAGEMENT SCIENCES
-
Financial Accounting
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.
D. All of these.
Jamal Khan
MANAGEMENT SCIENCES
-
Financial Accounting
Operating Profit is
A. After deducting taxes.
B. Profit after deducting normal operating expenses including depreciation.
C. After deducting Financial expenses.
D. None of these.
Muhammad Tayyab Ikhlas
MANAGEMENT SCIENCES
-
Financial Management
Sources of funds can be increased by
A. Increasing selling prices.
B. decreasing revenues.
C. Increasing expenses.
D. None of these.
Muhammad Tayyab Ikhlas
MANAGEMENT SCIENCES
-
Taxation Management
For which taxpayer Income Tax rates are the same
A. Banking companies in pakistan.
B. Limited liability companies.
C. Partnerships.
D. None of these.
Muhammad Tayyab Ikhlas
MANAGEMENT SCIENCES
-
Taxation Management
If a firm has paid super-tax, its partners may follow any one of the following behaviors
A. No need to pay income tax, even if the income exceeds the taxable limit.
B. Pay income tax as required under the law.
C. Pay income tax, even if the income does not exceed the taxable income.
D. None of these.
Muhammad Tayyab Ikhlas
MANAGEMENT SCIENCES
-
Taxation Management
Income Tax is levied on
A. Premptive income.
B. Presemptive income.
C. Superlative income.
D. Luxurious income.
Muhammad Tayyab Ikhlas
MANAGEMENT SCIENCES
-
Audit & Assurance
An auditor is liable for his annual audit of accounts of
A. Owners.
B. Creditors.
C. Debtors.
D. Bankers.
Muhammad Tayyab Ikhlas
MANAGEMENT SCIENCES
-
Audit & Assurance
Normally audit of a bank is conducted through
A. Vouching.
B. Balance sheet audit.
C. Stock taking.
D. routine checking.
Muhammad Tayyab Ikhlas
MANAGEMENT SCIENCES
-
Audit & Assurance
Internal Control is totally synonymous with
A. Internet audit.
B. Internal check.
C. Internal management.
D. None of these.
Muhammad Tayyab Ikhlas
MANAGEMENT SCIENCES
-
Audit & Assurance
What does stratified audit sample means
A. Continuousely selected items for audit.
B. Baseline items for audit.
C. Randomly selected items for audit.
D. Each group picked items for audit.
Muhammad Tayyab Ikhlas
MANAGEMENT SCIENCES
-
Audit & Assurance
Verification includes
A. Checking vouchers.
B. Checking audit reports.
C. Self stock taking.
D. None of these.
Bashir Farooqi
MANAGEMENT SCIENCES
-
Financial Accounting
Books of original entry are called
A. Journal.
B. Ledger.
C. Trial Balance.
D. Income Statement.
Bashir Farooqi
MANAGEMENT SCIENCES
-
Financial Accounting
For preparing balance sheets prepaid expenses are shown as part of
A. Revenue.
B. Expenses.
C. Assets.
D. Liability.
Bashir Farooqi
MANAGEMENT SCIENCES
-
Financial Accounting
Unpaid and unrecorded expenses are called
A. Prepaid Expenses.
B. Unearned Revenue.
C. Accrued Expenses.
D. Deferred Cost.
Bashir Farooqi
MANAGEMENT SCIENCES
-
Financial Accounting
Amount, cash, or other assets removed from business by owner is called
A. Drawings.
B. Self-Help.
C. Capital.
D. None of these.
Bashir Farooqi
MANAGEMENT SCIENCES
-
Financial Accounting
Under the diminishing balance method, depreciation amount is
A. Deficit.
B. Surplus.
C. Reciept.
D. Expenditure.
Bashir Farooqi
MANAGEMENT SCIENCES
-
Financial Accounting
Users of accounting information includes
A. Tax department.
B. Shareholders.
C. Creditors.
D. All of these.
Bashir Farooqi
MANAGEMENT SCIENCES
-
Financial Accounting
The business form(s) in which the owner(s) is (are) personally liable is (are) the
A. Limited liability company.
B. Soleproprietor .
C. Partnership.
D. Both B &C.
Bashir Farooqi
MANAGEMENT SCIENCES
-
Financial Accounting
The investment of personal assets by the owner
A. Decreases liabilities.
B. Increases expenses.
C. Has no effect on assets but increases owner’s equity.
D. Increases total assets and increases owner’s equity.
Bashir Farooqi
MANAGEMENT SCIENCES
-
Financial Accounting
All of the following are forms of organizations except
A. Corporation.
B. Partnership.
C. Properitorship.
D. Retailer.
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
A. Assets.
B. Liabilities.
C. Owner's equity.
D. None of these.
Bashir Farooqi
MANAGEMENT SCIENCES
-
Financial Management
An owner investment of land into the business would
A. Increase owner’s equity.
B. Increase withdrawls.
C. Decrease liabilities.
D. None of these.
Bashir Farooqi
MANAGEMENT SCIENCES
-
Financial Accounting
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.
Bashir Farooqi
MANAGEMENT SCIENCES
-
Financial Accounting
An owner investment of each into the business would
A. Increase assets.
B. Decrease liabilities.
C. Increase withdrawals.
D. Decrease owner’s equity.
Bashir Farooqi
MANAGEMENT SCIENCES
-
Financial Accounting
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.
Bashir Farooqi
MANAGEMENT SCIENCES
-
Financial Accounting
Real accounts are related to
A. Expenses and incomes.
B. Assets.
C. Customers and Creditors etc.
D. None of these.
Bashir Farooqi
MANAGEMENT SCIENCES
-
Financial Accounting
Which one of the following accounts would usually have a debit balance?
A. Cash.
B. Salaries.
C. Creditors.
D. Debtors.
Bashir Farooqi
MANAGEMENT SCIENCES
-
Financial Accounting
Quick assets include which of the following?
A. Cash.
B. Debtors.
C. Inventories.
D. A & B.
Muhammad Tayyab Ikhlas
MANAGEMENT SCIENCES
-
Financial Accounting
Accounting principles are generally based on the principle of
A. Subjectivity.
B. Ease of recording.
C. Practibility.
D. None of these.
Muhammad Tayyab Ikhlas
MANAGEMENT SCIENCES
-
Financial Accounting
Rent paid to the land lord should be credited to
A. Cash account.
B. Rent account.
C. Landlord account.
D. None of these.
Muhammad Tayyab Ikhlas
MANAGEMENT SCIENCES
-
Financial Accounting
In the event of dissolution of a partnership firm the provision for doubtful debts is transferred to
A. Liquidation account.
B. Suspense account.
C. Realization account.
D. None of these.
Muhammad Tayyab Ikhlas
MANAGEMENT SCIENCES
-
Financial Accounting
A prospectus for share can be issued only by
A. A private company.
B. A public company.
C. Semi Government.
D. Autonomous bodies.
Muhammad Tayyab Ikhlas
MANAGEMENT SCIENCES
-
Financial Accounting
Preliminary expenses are
A. Deferred cost.
B. Prepaid expenses.
C. Ficticous assets.
D. None of these.
Muhammad Tayyab Ikhlas
MANAGEMENT SCIENCES
-
Financial Accounting
The valuation of closing stock is at
A. Market price or cost whichever is lower.
B. Market price.
C. Cost price.
D. None of these.
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
A. Asset decreased liability increased.
B. Asset decreased liability decreased.
C. Asset increase liability decreased.
D. None of these.
Muhammad Tayyab Ikhlas
MANAGEMENT SCIENCES
-
Financial Accounting
Which one of the following account normally have a credit balance?
A. Cash account.
B. Creditors account.
C. salaries account.
D. None of these.
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
A. A debit to rent earned for Rs 600.
B. A credit to unearned revenue for Rs 300.
C. A debit to unearned revenue for Rs 600.
D. A debit to unearned revenue for Rs 300.
Muhammad Tayyab Ikhlas
MANAGEMENT SCIENCES
-
Financial Management
Quick Asset includes which of the fallowing
A. Cash.
B. Marketable securities.
C. Debtors.
D. A & B above.
Muhammad Tayyab Ikhlas
MANAGEMENT SCIENCES
-
Financial Accounting
When a small stock dividend is declared which of the fallowing accounts is credited
A. Accumulated profit.
B. Dividend account.
C. Common stock dividend distributable.
D. Common stock.
Muhammad Tayyab Ikhlas
MANAGEMENT SCIENCES
-
Financial Accounting
An advantages of the partnership form of business organization is its
A. Mutual agency.
B. Ease of formation.
C. Liquidity.
D. Solvency.
Diginy Dash
MANAGEMENT SCIENCES
-
Financial Accounting
In balance sheet accumulated loss of company shown as
A. an asset.
B. a liability.
C. an expense.
D. a revenue.
Diginy Dash
MANAGEMENT SCIENCES
-
Financial Accounting
Double Entry Book Keeping was fathered by
A. Yoyji Ijiri.
B. Luca Paioli.
C. Yoyji Ijiri.
D. Yugene Fama.
Fani Warraich
MANAGEMENT SCIENCES
-
Audit & Assurance
Which of the following best describes the primary objective of an external audit?
A. Detecting and preventing fraud within the organization.
B. Providing assurance on the reliability of financial statements.
C. Evaluating the efficiency of internal control systems.
D. Advising management on business strategiesb.
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?
A. Issuing an audit opinion on the financial statements.
B. Communicating audit findings to management.
C. Identifying areas of potential risk of material misstatement.
D. Testing internal controls to detect fraud.
Fani Warraich
MANAGEMENT SCIENCES
-
Audit & Assurance
Which of the following sampling methods is commonly used in audit testing to select items for examination?
A. Convenience sampling.
B. Stratified sampling.
C. Judgmental sampling.
D. Judgmental sampling.
Fani Warraich
MANAGEMENT SCIENCES
-
Audit & Assurance
Which of the following types of audit opinion indicates that the financial statements are free from material misstatement?
A. Adverse opinion.
B. Qualified opinion.
C. Unqualified opinion.
D. Unqualified opinion.
Fani Warraich
MANAGEMENT SCIENCES
-
Audit & Assurance
Which of the following would NOT be considered a control deficiency in internal controls?
A. Lack of segregation of duties.
B. Inadequate documentation of procedures.
C. Existence of related-party transactions.
D. Ineffective monitoring of controls.
Fani Warraich
MANAGEMENT SCIENCES
-
Audit & Assurance
Which of the following audit procedures is designed to test the existence and completeness assertion for inventory?
A. Confirmation with suppliers.
B. Inquiry with management.
C. Observation of physical inventory count.
D. Analytical procedures.
Fani Warraich
MANAGEMENT SCIENCES
-
Audit & Assurance
In the context of audit sampling, what is meant by the term "sampling risk"?
A. The risk that the sample selected may not be representative of the population.
B. The risk that the auditor may fail to detect material misstatements in the financial statements.
C. The risk that the auditor's procedures may not be performed effectively.
D. The risk that the auditor may not maintain independence and objectivity.
Fani Warraich
MANAGEMENT SCIENCES
-
Audit & Assurance
Which of the following best describes the purpose of analytical procedures in an audit engagement?
A. Confirming the existence of specific assets with third parties.
B. Testing the effectiveness of internal controls.
C. Evaluating compliance with regulatory requirements.
D. Identifying unusual or unexpected fluctuations in account balances.
Fani Warraich
MANAGEMENT SCIENCES
-
Audit & Assurance
Which of the following types of audit evidence is generally considered the most reliable?
A. Oral representations made by management.
B. Documentary evidence obtained from independent third parties.
C. Internal memos prepared by the client's staff.
D. Electronic records maintained by the client's IT department.
Fani Warraich
MANAGEMENT SCIENCES
-
Audit & Assurance
What is the primary purpose of issuing an auditor's report?
A. To express an opinion on the fairness of the financial statements.
B. To provide recommendations for improving internal controls.
C. To communicate findings from audit procedures to management.
D. To assess the effectiveness of risk management practices.
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?
A. The chronological journal records transactions in the order they occur..
B. Transactions are first recorded in the chronological journal before being posted to the general ledger. pen_spark.
C. The general journal provides a detailed explanation for each transaction..
D. Both journals are essential for maintaining a complete record of financial activities..
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?
A. Segregation of duties between purchasing and accounting departments is crucial..
B. Daily bank reconciliations will highlight the discrepancy..
C. Reviewing general ledger accounts for unusual activity is sufficient..
D. Both (a) and (b) are correct..
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?
A. Company A, as it simplifies the recording process..
B. It depends on the transaction volume; neither has an inherent advantage..
C. Company B, as special journals improve efficiency..
D. Both companies will have the same level of efficiency..
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. It depends on the type of error; some might not affect the trial balance..
B. Yes, a balanced trial balance confirms no errors..
C. No, errors can still exist and cancel each other out..
D. The trial balance doesn't provide any information about journal errors..
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?
A. Debit Rent Expense $12,000, Credit Cash $12,000..
B. Debit Prepaid Rent $12,000, Credit Cash $12,000..
C. Debit Rent Expense $1,000 (monthly rent), Credit Cash $1,000 (recorded monthly for 12 months)..
D. The recording depends on the company's accounting policy for prepaid expenses..
Josh Mini
MANAGEMENT SCIENCES
-
Financial Accounting
What is the name of email.
A. A.
B. B.
C. C.
D. D.
Contributor(6)
Fani Warraich
Bashir Farooqi
Jamal Khan
Muhammad Tayyab Ikhlas
Diginy Dash
Josh Mini
Good