Accounting Practice MCQs CS Set 9

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(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

Answer. (c)

(2) Preparation of final financial reports is governed in Pakistan under:

(a) No law

(b) Companies Ordinance 1984

(c) None of these

Answer. (b)

(3) Depreciation is based on:

(a) Economic life of asset

(b) Declared life of asset by supplier

(c) Normal life of asset

(d) None of these

Answer. (a)

(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

Answer. (a)

(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

Answer.

(6) Deferred Revenue is:

(a) Liability

(b) Asset

(c) None of these

Answer. (a)

(7) Preparation of annual report of a firm is governed under:

(a) Partnership Act 1932

(b) Under partnership Deed

(c) None of these

Answer. (c)

(8) Deferred Taxation amount be treated as:

(a) Foot note

(b) An item in the Balance Sheet on asset side

(c) None of these

Answer. (b)

(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

Answer. (b)

(10) Current maturity of long term loan is:

(a) Current Liability

(b) Long Term Liability

(c) None of these

Answer. (a)

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