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Accounting & Auditing Paper-II (2003) Write only the correct answer in the Answer Book. Do not reproduce the questions. (1) Rent of the premises constitutes variable expenses for cost allocation: (a) True (b) False (2) Sugar used in a sugarcane company is: (a) Variable cost (b) Fixed cost (c) None of these (3) An auditor is liable under the following circumstances: (a) Third Party Liabilities (b) Fraud perpetrated in highly sophisticated circumstances (c) None of these (4) Agricultural income is taxable under the Income Tax Laws of Pakistan: (a) True (b) False (5) Principal and markup payment within one year constitutes long term liability for disclosure in the balance sheet of a company. (a) True (b) False (6) Ordinarily one can have the following partners in a partnership in Pakistan under the Partnership Act 1932. (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 Capi...

Accounting & Auditing Paper-I (2003) (1) Acid Test Ratio is calculated as under: (a) Current Assets/Current Liabilities (b) Fixed Assets/Current Liabilities (c) Liquid Assets/Current Liabilities (d) None of these (2) Deferred cost is a: (a) Liability (b)Asset (c) None of these (3) Work Sheet is: (a) Balance Sheet (b) Fund Flows Statement (c) A combination of Profit and Loss Account and Balance Sheet items (d) None of these (4) Banks, for the preparation of financial statements, are governed under: (a) Banking Companies Ordinance, 1962 (b) State Bank of Pakistan Act (c) None of these (5) Return on investment is computed: (a) Investment/Profit x 100 (b) Profit x 100/Investment (c) None of these 

Accounting & Auditing Paper-II (2002) Write only the correct answer in the Answer Book. Do not reproduce the questions. (1) Prime cost is calculated as under: (a) Manufacturing Cost/Cost of Goods Sold (b) Direct Method plus factory overheads (c) Direct labour + Direct Material (d) None of these (2) Process Cost is very much applicable in: (a) Construction Industry (b) Pharmaceutical Industry (c) Air line company (d) None of these (3) The latest computation of variances of manufacturing overheads is in one the following ways: (a) Two variance approaches (b) Three variance approaches (c) Four variance approaches (d) None of these (4) Random sampling in auditing means: (a) Selection through convenience sampling (b) Selection through scientific sampling approach (c) None of these (5) Expenditure incurred in procuring machinery is: (a) An admissible expenditure for tax purposes (b) No admissible for tax purposes (c) None of these (6) Increase in income constitutes: (a) Inflows (b) Ou...

Accounting & Auditing Paper-I (2002) (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: (a) Worksheet and Balance Sheet (b) Worksheet and profit and loss account  (c) Worksheet as combination of results of profits and financial positions (d) None of these (6) Deferred Revenue is: (a) Liability (b) Asset (c) None of these (7) Preparation of annual report of a firm is governed under: (a) Partnership Act 1932 (b) Und...

Accounting & Auditing Paper-II (2001) Write only the correct answer in the Answer Book. Do not reproduce the questions. (1) The measureable value of an alternative use of resources is referred to as: (a) An opportunity cost (b) An imputed cost (c) A different cost (d) A sunk cost (e) None of these (2) A quantitative expression of management objectives is an: (a) Organizational chart (b)Management chart (c) Budget (d) Procedural chart (e) None of these (3) A cost center is: (a) A unit of production in relation to which costs are ascertained (b) A location which is responsible for controlling direct costs (c) Part of the factory overhead system by which costs are gathered (d) Any location or department which incurs cost (e) None of these (4) At break-even point of 400 units sold the variable costs were Rs. 400 and the fixed costs were Rs.200. What will be the 401 units sold contributing to profit before income tax? (a) Rs. 0.00 (b) Rs. 0.50 (c) Rs. 1.00 (d) Rs. 1.50 (e) Non...

Accounting & Auditing paper-I (2001) Write only the correct answer in the Answer Book. Do not reproduce the questions. (1) Books of original entry are called: (a) Ledger  (b) Work sheets (c) Journal (d) None of these (2) For preparing balance sheets prepaid expenses are shown as part of: (a) Liability (b) Equities (c) Assets (d) None of these (3) Unpaid and unrecorded expenses are called: (a) Prepaid expenses (b) Accrued expenses (c) Additional expenses (d) None of these (4) Amount, cash, or other assets removed from business by owner is: (a) Capital (b) Drawings (c) Assets (d) None of these (5) Under the diminishing balance method, depreciation amount is: (a) Payment (b) Receipt (c) Expenditure (d) None of these (6) Users of accounting information include: (a) The tax authorities (b) Investors (c) Creditors (d) All of these (7) The business form(s) in which the owner(s) is (are) personally liable is (are) the: (a) Partnership only (b) Proprietorship (c) Corporation only (d)...