Accounting Practice MCQs Competitive Exams Set 1

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(1) Double entry book-keeping was fathered by:

(a) F. W. Taylor

(b) Henry Fayol

(c) Lucas Pacioli.

Answer: (c)

(2) Funds Flow Statement and sources and application statement are:

(a) Synonymous

(b) Antagonistic

(c) None of these.

Answer: (a)

(3) Depreciation in spirit is similar to:

(a) Depletion

(b) Amortization

(c) Depression.

Answer: (b)

(4) Balance Sheet is always prepared:

(a) for the year ended.

(b) As on a specified date.

(c) None of these

Answer: (b)

(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.

Answer: (b)

(6) Partners in Pakistan can today be fixed at the following numbers:

(a) 20

(b) 50

(c) 75.

Answer: (a)

(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.

Answer: (a)

(8) Break Even can be calculated as under:

(a) ________VC________ FC- TR TC

(b) FC I- VC TR

(c) None of these.

Answer: (b)

(9) Quick Ratio can be computed as under:

(a) Quick . Assets/Quick Liabilities

(b) Quick . Liabilities Current Assets

(c) Current Assets/Current Liabilities

Answer: (c)

(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.

Answer: (b)

(11) Sales budget must be prepared:

(a) Independently

(b) Depending on production capacity

(c) Based on Sales forecasts of market.

Answer: (c)

(12) Consolidation of subsidiary accounts in the balance sheet of an unlisted Holding company is at present in Pakistan:

(a) Compulsory

(b) Voluntary

(c) Required.

Answer: (c)

(13) Retained earnings is synonymous to:

(a) Accumulated profit and loss account

(b) Profit for the year

(c) None of these.

Answer: (a)