MCQ Bank
In partnership if number of partners fall below two, then:
- A) The partnership will dissolve
- B) Non of the given options
- C) The remaining partner will be liable to run the partnership
- D) The partnership will continue
Which one of the following inventory methods shows less expense on income statement during inflation period?
- A) Last-in-First-Out (LIFO)
- B) All of the given options
- C) Average cost method
- D) First-in-First - out (FIFO)
Which of the following is NOT true about the Financial Statement?
- A) It is used for the future projection
- B) It is used by the stakeholders for evaluation purposes
- C) It explains about the external threats faced by the company
- D) It is end product of the Accounting cycle
A company itself can be a partner of a firm because a company:
- A) Can manage it well
- B) Can also be register under Act 1932
- C) Is a juristic person
- D) Has large capital
Which of the following represents the value at which shares can be traded fairly?
- A) Face value
- B) Market value
- C) Book value
- D) Par value
Which of the following is a public limited company?
- A) All of the Given options
- B) Ghani Float Limited
- C) Sitara Chemicals Limited
- D) Dawood Hercules Limited
Generally speaking, investors prefer to buy shares at which of the following price when a company is in a recession phase?
- A) At face value
- B) At Premium value
- C) All of the given option
- D) Below face value
Opinion of the external auditor such as unqualified audit opinion is assurance to the stakeholders that:
- A) The company has the ability to pay debts easily
- B) None of the given options
- C) The management is running the company efficiently
- D) The internal auditor has done his duty efficiently last year
Which of the following is TRUE about the qualified audit report?
- A) It damages the credibility of the auditor
- B) It ensures the fairness of financial statement
- C) It damages the reliability of the financial statements
- D) It ensures that audit has been performed by qualified auditor
The percentage change is computed by dividing the amount of the dollar change between years and:
- A) The average of past ten years
- B) The current year
- C) The base year
- D) The average of past five year
Which of the following is NOT a part of the shareholder’s equity?
- A) Paid in capital
- B) Gross profit
- C) Retained earnings
- D) Additional paid in capital
Which of the following represents the aggregate value of a corporation’s issued shares?
- A) Market capitalization
- B) Book value of the shares
- C) Total book value of the company
- D) Market value of the company
Which of the following is not a right of every common shareholder?
- A) Right to attend general meeting
- B) Right to contract on the behalf of the company
- C) Right to take dividend
- D) Right to vote
Which of the following should NOT be called “Sales”?
- A) Sale of item previously included in ‘Purchases’
- B) Office fixtures sold
- C) Goods sold on credit
- D) Goods sold for cash
Which one of the following remains intact and unaffected by the continuous changes in business?
- A) Retained Earnings
- B) Capital Stock
- C) Assets
- D) Liabilities
Which of the following is an inventory pricing procedure in which the oldest costs incurred rarely have an effect on the ending inventory valuation?
- A) LIFO
- B) FIFO
- C) Weighted-average
- D) Specific identification
For the purpose of the analysis, which limitation is beyond the control of an analyst?
- A) All of the given option
- B) Inflation effect on the interpretation
- C) Use of historical cost for certain assets
- D) Use of different accounting policies
Equipment costing Rs. 3,000 with accumulated depreciation of Rs. 2,125 is exchanged for another asset with a fair value of Rs. 625. The exchange has commercial substance. How much is the gain or loss on this transaction?
- A) No gain or loss should be recognized.
- B) A gain of Rs. 250 should be recognized
- C) A loss of Rs. 500 should be recognized
- D) A loss of Rs. 250 should be recognized
Which of the following is a technique in accounting that can be used to present the financial position of the company in a favorable light?
- A) Good will
- B) Window dressing
- C) Relevance
- D) Consistency
Which of the following is a legal entity having existence separate and distinct from that of its owners?
- A) General partnership
- B) All of the Given options
- C) Corporations
- D) Sole proprietorship