Accounting Practice MCQs Competitive Exams Set 11

Download PDF of This Page (Size: 135K)

For complete answers and explanations visit Doorsteptutor.com

(1) Acid Test Ratio is calculated as under:

(a) Current Assets/Current Liabilities

(b) Fixed Assets/Current Liabilities

(c) Liquid Assets/Current Liabilities

(d) None of these

Answer. (c)

(2) Deferred cost is a:

(a) Liability

(b)Asset

(c) None of these

Answer. (b)

(3) Work Sheet is:

(a) Balance Sheet

(b) Fund Flows Statement

(c) A combination of Profit and Loss Account and Balance Sheet items

(d) None of these

Answer. (c)

(4) Banks, for the preparation of financial statements, are governed under:

(a) Banking Companies Ordinance, 1962

(b) State Bank of Pakistan Act

(c) None of these

Answer. (a)

(5) Return on investment is computed:

(a) Investment/Profit x 100

(b) Profit x 100/Investment

(c) None of these

Answer. (b)

(1) Rent of the premises constitutes variable expenses for cost allocation:

(a) True

(b) False

Answer. (a)

(2) Sugar used in a sugarcane company is:

(a) Variable cost

(b) Fixed cost

(c) None of these

Answer. (a)

(3) An auditor is liable under the following circumstances:

(a) Third Party Liabilities

(b) Fraud perpetrated in highly sophisticated circumstances

(c) None of these

Answer. (b)

(4) Agricultural income is taxable under the Income Tax Laws of Pakistan:

(a) True

(b) False

Answer. (b)

(5) Principal and markup payment within one year constitutes long term liability for disclosure in the balance sheet of a company.

(a) True

(b) False

Answer. (b)

Developed by: