Accounting & Auditing Paper I (2001) - B

Accounting & Auditing Paper I (2001) - B

1. An owner investment of land into the business would?

a) Decrease withdrawals
b) Increase liabilities
c) Increase owner’s equity
d) Decrease assets
e) None of these

2. A cash purchase of supplies would?
An owner investment of each into the business would?

a) Decrease owner’s equity Increase assets
b) Increase liabilities
c) Have no effect on total assets+Increase withdrawals
d) Decrease owner’s equity
e) None of these

3. The payment of rent each month for office space would?

a) Decrease total assets
b) Increase liabilities
c) Increase owner’s equity
d) None of these

4. An owner investment of each into the business would?

a) Increase assets
b) Decrease liabilities
c) Increase withdrawals
d) Decrease owner’s equity
e) None of these

5. Real accounts are related to?
Which one of the following accounts would usually have a debit balance?

a) Assets
b) Expenses and incomes
c) Customers and Creditors etc.
d) None of these
e) None of these

6. Net income plus operating expenses is equal to?

a) Net sales
b) Cost of goods available for sale
c) Cost of goods sold
d) Gross profit
e) None of these

7. Quick assets include which of the following?

a) Cash
b) Accounts Receivable
c) Inventories
d) Only (a) and (b)
e) None of these

8. The maximum number of partners in Pakistan can be fixed at the following?

a) 20
b) 50
c) 75
d) None of these

9. Which one of the following accounts would usually have a debit balance?

a) Cash
b) Creditors
c) Accounts payable
d) Salaries Expenses
e) None of these

10. Balance sheet is always prepared?
a) For the year ended
b) As on a specific date
c) None of these

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