Accounting Practice MCQs Competitive Exams Set 3

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5. A good Cost Accounting System is:

a. If it computes estimated cost only

b. If it cannot be reconciled with financial accounts

c. If it enables management to increase productivity and rationalize cost structure

Answer. c.

6. Verification includes:

a. Checking Vouchers

b. Examining audit report

c. None of the above

Answer. c.

7. Stratified audit sample means:

a. Randomly selected items for audit

b. Purposively selected items for audit

c. Items carefully selected from each group

Answer. a.

8. Internal Control is totally synonymous with:

a. Internal check

b. Internal audit

c. None of above

Answer. c.

9. Audit of a bank is generally conducted through:

a. Routine checking

b. Couching

c. Balance sheet audit

Answer. a.

10. An auditor is liable for his annual audit of accounts o:

a. Creditors

b. Bankers

c. Owners

Answer. c.

11. Income Tax is levied on:

a. Agricultural Income

b. Presumptive Income

c. None of above

Answer. b.

12. If a firm has paid super-tax, its partners may follow any one of the following behaviours:

a. No need to pay income tax, even if the income exceeds the taxable limit.

b. Pay income tax, even if the income does not exceed the taxable income.

c. Pay income tax as required under the law.

Answer. c.

13. A resident multinational company need not:

a. Pay income tax, if it՚s caused under Double Taxation agreement.

b. If it is not enjoying tax exemption under the Income Tax Ordinance, 1979 (Second Schedule) .

c. None of above

Answer. c.

14. Income Tax rates are the same for:

a. Limited Companies

b. Banking Companies

c. None of above

Answer. b.

15. Super Tax on companies is:

a. In vogue in Pakistan

b. Not in vogue in Pakistan

c. None of above

Answer. b.