Accounting & Auditing Paper I (2002) - A

Accounting & Auditing Paper I (2002) - A

1. Maximum number of partners in a partnership firm set up in Pakistan under Partnership Act, 1932 is?

a) 5
b) 25
c) 20
d) None of these

2. Preparation of final financial reports is governed in Pakistan under?

a) No law
b) Companies Ordinance 1984
c) None of these

3. Depreciation is based on?

a) Economic life of asset
b) Declared life of asset by supplier
c) Normal life of asset
d) None of these

4. Inventory turnover is calculated as under?

a) Cost of Goods sold/Closing Inventory
b) Gross profit/Closing Inventory
c) Sales/Opening Inventory
d) None of these

5. There is a difference between?
Deferred Revenue is?

a) Worksheet and Balance Sheet
Liability
b) Worksheet and profit and loss account
Asset
c) Worksheet as combination of results of profits and financial positions
None of these
d) None of these

6. Preparation of annual report of a firm is governed under?

a) Partnership Act 1932
b) Under partnership Deed
c) None of these

7. Deferred Taxation amount be treated as?

a) Foot note
b) An item in the Balance Sheet on asset side
c) None of these

8. Deferred Revenue is?

a) Liability
b) Asset
c) None of these

9. Return of Equity will be calculated as under?

a) Operating Profit x 100/Equity
b) Net profit x 100/Paid up Capital only
c) None of these

10. Economics resources of a business that are expected to be of benefit in the future are referred to as?
a) Liabilities
b) Owner’s equity
c) Withdrawals
d) Assets

e) None of these

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