Which of following is a characteristics of fixed asset?

• A) Fixed assets are used in the business to earn income
• B) Fixed assets have long life
• C) All of the given options
• D) Fixed assets is not purchased with the aim of resale

Which of the following account is credited when the shares are issued on discount?

• A) Loss on issue of shares account
• B) Share Capital account
• C) Discount on issue of shares account
• D) Cash account

Book value is of limited use to the investment analyst since it is based on:

• A) Fair value
• B) Future value
• C) Historical costs
• D) Market value

Which of the following auditor's opinion shows the inability of the auditor to audit the accounts of a business?

• A) Unqualified Opinion
• B) Qualified Opinion
• C) Disclaimer of Opinion
• D) Adverse Opinion

The purpose of recording depreciation on productive assets is to:

• A) Reduce income when the company has an exceptionally profitable year
• B) Reflect the decline in the market value of the assets each period
• C) Be in conformity with the revenue recognition principle
• D) Allocate the original cost of a productive asset to expense over its useful life

Which of the following is NOT true about depreciation?

• A) Depreciation does not depend upon on fluctuations in the market value of asset
• B) Depreciation is charged in case of fixed assets only
• C) Depreciation causes perpetual and gradual fall in the value of asset
• D) Depreciation is charged against revenue of two or more accounting periods

Which of the following is not TRUE about the financial statement analysis?

• A) It is used to analyse the current performance
• B) Solvency of the business can be analyzed
• C) Future can be predict by using different analytical tools
• D) It is main part of the set of financial statements for every business

Which of the following is NOT a disadvantage of a Sole proprietorship?

• A) Limited capital
• B) Unlimited liability
• C) Lack of continuity
• D) Strong managerial expertise

The true and fair presentation of the financial statements depends upon all of the followings EXCEPT:

• A) Matching principle
• B) Concept of materiality
• C) Strong financial position
• D) Realization principle

Which one of the following is NOT an objective of fundamental analysis?

• A) To evaluate its management and make internal business decisions
• B) To make projection on its business performance
• C) To calculate its credit risk
• D) To predict the future stock price

Which of the following is true about partnership business?

• A) There can be maximum 20 partners
• B) It is registered under partnership Act 1923
• C) Liability of partners is limited normally
• D) Partner is not liable for the fraud committed by other partner

If the ending inventory is overstated in the year; the cost of goods sold will be _______ and gross profit __________.

• A) Understated, Overstated
• B) Overstated, understated
• C) Understated, understated
• D) Overstated, Overstated

Which of the following have an effect on the book value of an asset?

• A) Routine lubricant of the asset
• B) Maintenance of some parts of the asset
• C) Expenditure incurred to increase the efficiency of the asset
• D) All of the given

The appropriate journal entry to record machinery depreciation of Rs. 1,000 is:

• A) Debit - Depreciation Expense 1,000; Credit - Accumulated Depreciation 1,000
• B) Debit - Accumulated Depreciation 1,000; Credit – Machine 1,000
• C) Debit - Accumulated Depreciation 1,000; Credit - Depreciation Expense 1,000
• D) Debit - Depreciation Expense 1,000; Credit- Loss on asset value account 1,000

If demand of shares of a company decreases and company needs extra funds then the company should issue shares at:

• A) Discount
• B) Premium
• C) Face value
• D) Fair value

Which one of the following inventory methods uses random withdrawal of inventory’ units?

• A) All of the given options
• B) Last-in-First-Out (LIFO)
• C) Average cost method
• D) First-in-First - out (FIFO)

A company itself can be a partner of a firm because a company:

• A) Can manage it well
• B) Has large capital
• C) Is a juristic person
• D) Can also be register under Act 1932

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) Relevance
• C) Consistency
• D) Window dressing

Which one of the following inventory methods shows less expense on income statement during inflation period?

• A) First-in-First - out (FIFO)
• B) Last-in-First-Out (LIFO)
• C) All of the given options
• D) Average cost method

All of the following are the rights of the common shareholders of a Company Except:

• A) Right to take dividend
• B) Right to take part in the decision making
• C) Right to vote
• D) Right to attend the general meeting