Accounting Practice MCQs Competitive Exams Set 2

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(14) 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, 1984.

(c) Under (a) and (b) above.

Answer. (c)

(15) Deferred Taxation is:

(a) Fixed asset

(b) Fixed liabilities

(c) Part of Owners Equity.

Answer. (c)

(16) Investment Corporation of Pakistan follows:

(a) Open-end mutual funds

(b) Closed-end mutual funds

(c) None of these.

Answer. (c)

(17) Directors Report is ---- in respect of financial report constituent.

(a) Mandatory for a limited Company

(b) Voluntary for a limited Company

(c) None of these.

Answer. (a)

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

(a) Ratio Analysis

(b) Chairman’s Review

(c) None of these.

Answer. (b)

(19) Cash budget excludes the following:

(a) Non-Cash items

(b) Cash items

(c) Purchase on Credit items.

Answer. (a)

(20) 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.

Answer. (a)

1. Fixed Cost:

a. Changes with production

b. Never changes even if production capacity is doubled

c. None of the above

Answer. b.

2. Conversion cost is:

a. Material Cost + Overhead Cost

b. Direct Labour + Material Cost

c. Labour Cost + Overhead Cost

Answer. c.

3. Process Costing is relevant to:

a. Cement industry

b. Job Order cost oriented Projects

c. None of the above

Answer. a.

4. Operating Profit is:

a. Profit after deducting financial costs

b. Profit after deducting taxes

c. Profit after deducting normal operating expenses including depreciation

Answer. c.

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