Which of the following represents the objective of the financial statements?

• A) To provide the information about the business objectives
• B) To provide the information about the financial position, financial performance and changes in financial position
• C) To provide the information about the business assets
• D) To provide the information about the business liabilities

Which of the following is TRUE with respect to the loss on revaluation of assets and liabilities?

• A) Capital of old partners are credited
• B) New profit ratio is utilized for loss distribution
• C) Revaluation account is credited
• D) Revaluation account is debited

Profit from revaluation of land is an example of:

• A) Realized profit
• B) Gross profit
• C) Unrealized profit
• D) Expected profit

Which of the following represents that the shares are issued at a price above the face value?

• A) Share issued at nominal value
• B) Share issued at discount
• C) Share issued at par value
• D) Share issued at premium

Which of the following is NOT an example of distributable reserve?

• A) Profits
• B) Retained earnings
• C) Revaluation reserve
• D) General reserve

Mr. A a new incoming partner brings Rs. 6,000 as goodwill for 1/5th share in the firm's profit. The total goodwill of the firm will be valued at:

• A) Rs. 17,000
• B) Rs. 30,000
• C) Rs. 1,200
• D) Rs. 33,000

Provision for income tax would be treated in balance sheet as:

• A) Contingent Liabilities
• B) Non-Current Liabilities
• C) Current Liabilities
• D) Medium Term Liabilities

Which of the following type of business has a separate legal entity?

• A) Trust
• B) Sole-Proprietorship
• C) Company
• D) Partnership

The Joint Stock Company is formed under the Companies Ordinance:

• A) 1962
• B) 1984
• C) 1884
• D) 1979

A financial statement showing the net worth, sources and resources is known as:

• A) Statement of Cash flows
• B) Statement of changes in equity
• C) Income statement
• D) Balance sheet

Which of the following is NOT related to the qualitative characteristics that make financial information useful?

• A) Reliability only
• B) Both Reliability and Relevancy
• C) Understandability
• D) Relevancy only

Which of the following represents that the shares are issued at a price below the face value?

• A) Share issued at par value
• B) Share issued at premium
• C) Share issued at nominal value
• D) Share issued at discount

Deferred tax liability would be treated in balance sheet as:

• A) Medium Term Liabilities
• B) Current Liabilities
• C) Non-Current Liabilities
• D) Contingent Liabilities

Which of the following appears in the Debit side of Trial Balance of company account?

• A) Income
• B) None of the given options
• C) Capital
• D) Liabilities

Which of the following would be credited for decreasing the provision for deferred tax?

• A) Provision for income tax a/c
• B) Income tax expenses a/c
• C) Deferred tax liabilities a/c
• D) Provision for liabilities a/c

Balance sheet of a company comprises of a all of types of accounts except:

• A) Personal Account
• B) Tangible Real Account
• C) Intangible Real Account
• D) Nominal Account

Which one of the following attribute may raise Goodwill in a business?

• A) Outstanding credit rating
• B) Good customer relationship
• C) Good reputation
• D) All of the given options

Increase in the market value of raw material purchased by partners is an example of:

• A) Realized profit
• B) Gross profit
• C) Expected profit
• D) Unrealized profit

OWNERS EQUITY = ASSETS - LIABILITIES
This version of the equation shows that at a given point in time, if assets exceed liabilities, the excess (residual) amount is attributed to the owners. Another term used to refer assets minus liabilities is;

• A) Gross profit
• B) Net worth
• C) Net profit
• D) Total Assets

Income statement of a company comprises which type of accounts?

• A) Intangible Real Account
• B) Personal Account
• C) Nominal Account
• D) Tangible Real Account