Audit Mcqs PDF
Audit Mcqs PDF
Audit Mcqs PDF
(a) F.W.Taylor
(b) Henry Fayol
(c) Lucas Pacioli.
(2) Funds Flow Statement and sources and
application statement are:
(a) Synonymous
(b) Antagonistic
(c) None of these.
(3) Depreciation in spirit is similar to:
(a) Depletion
(b) Amortization
(c) Depression.
4) Balance Sheet is always prepared:
(a) for the year ended.
(b) As on a specified date.
(c) None of these.
(5) In Insurance, the following Profit and Loss
Accounts are prepared:
(a) Separate for Fire, Marine, and Accidents etc.
(b) Consolidated for Fire, Marine, and
Accidents etc.(c) None of these.
(6) Partners in Pakistan can today be fixed at the
following numbers:
(a) 20
(b) 50
(c) 75.
(7) Flexible budget is a budget with the following
features:
(a) Changes with volume of production.
(b) Changes with variable expenses
(c) Changes in Direct material.
(8) Break Even can be calculated as under:
(a) ______VC_______
FC- TR TC
(b) FC
I- VC TR(c) None of these.
(9) Quick Ratio can be computed as under:
(a) Quick . Assets/Quick Liabilities
(b) Quick . Liabilities Current Assets
(c) Current Assets/ Current Liabilities
6. Verification includes:
a. Checking Vouchers
b. Examining audit report
c. None of the above
(c) Retailer
(d) Partnership
(e) None of these
(b) 50
(c) 75
(d) None of these
(a) 10
(b) 20
(c) 30
(d) None of these
(7) Working Capital finance can be termed as
Running Finance in a limited company.
(a) True
(b) False
(8) Income from Capital gains arising out of trading
on a stock strange in Pakistan is taxable these days:
(a) True
(b) False
(9) Conversion Cost is calculated as under:
(a) Labour Plus Materials
(b) Labour plus overheads
(c) None of these
(10) Current Ratio can be calculated as under:
(a) Current Liabilities/Current Assets
(b) Current Assets/Current Liabilities
(c) None of these
1.
http://www.sbp.org.pk/bsd/2001/C36.htm
In terms of Section 34 of the Banking
Companies Ordinance, 1962 the banks are
required to prepare their annual accounts in
the forms set out in the Second Schedule to
the said Ordinance.
capital
(3) When business activity increases the
fixed cost per unit
(a) Decreased (b) Remain the same (c)
Increases (d) None of these
4) Standard cost are not used to
(a) Measuring the performance (b) Prepare
Budgets (c) Aid in planning (d) Avoid
tracking actual costs
(5) Return on investment could be improved
by
(a) Increasing assets turnover (b)
Decreasing return on sales (c) Decreasing
contribution margin (d) Increasing control
expense
(6) The formula a future value of dollar is
(a) P (1 + r )n (b) P (1 - r )n (c) P (1 + n)r
(d) P (r -1 )n
(7) The analysis of financial statement helps
identify a companys strengths and
weaknesses it indicate if company
(a) is managing its inventory efficiently (b)
Has sufficient plant assets
(c) is collecting accounts receivable quickly
(d) All of the above
(8) Companys earning power ratios are of a
great interest to
(a) Preferred shareholders (b) Long terms
lenders (c) Common share holders (d) all of
these
(9) Depreciation Expense is
(a) a cash inflow (b) a cash outflow (c)
Ignored when proper cash flow statements
(d) Added to the accumulated depreciation
account
(10) An increase in income tax payable mean
that the company
(a) Paid less than the income tax expense
repotted (b) Paid more than the income tax
expense reported (c) Paid the same as the
income tax expense reported (d) Is not
paying any income taxes
(11) A Cash sale of merchandise should be
recorded in the
(a) Sales journal (b) General Journal (c)
Cash receipt journal (b) Cash payment
journal
(12) Which of the fallowing should not be
considered cash by an accountant?
(a) Money Order (b) Bank saving account
balance (c) Postage stamps (d) Travelers
cheques
(13) The inventory method that assigns the
most recent costs to the cost of goods sold is
(a) FIFO (b) LIFO (c) Weight average (d)
Specific Identification
(14) In finance Working capital means the
same things as
(a) Total assets (b) Fixed assets (c) Current
assets (d) Current assets minus current
liabilities
(15) The more basic requirement for a firms
marketable securities
(a) Safety (b) yield (c) Marketability
(16) Partnership forms of organization
(a) Avoids the double taxation of earnings
and dividends found in the corporate form of
a organization (b) Usually provides limited
liability to the partners (c) Has unlimited life
(17) A corporate buy back or the
repurchasing of share is
(a) An example of balance sheet
restructuring (b) An excellent source of profit
when the firm stock is overpriced