1- Bond holders would be most interested in which of the following?
A). Quick Ratio
B). Inventory turnover
C). Times interest earned✔️
D). None of these
2- The amount of over time premium contained in direct wages would normally be classified as:
A). Part of prime cost
B). Factory overhead✔️
C). Direct Labour cost
D). Administrative overhead
3- Audit working papers are the property of:
D). Registrar of companies
4- Dividend income is subject to tax at source at:
5- Tax deducted at source will be treated as:
C). Deductible from net tax✔️
D). None of these
6- A co-operative society is registered under co-operative society act of:
7- Which one of the following is not considered a legal document of Joint Stock Company?
A). Memorandum of association
B). Articles of association
8- A job- order costing system is most appropriate for which of the following types of manufacturing?
A). Flour milling
B). Paper manufacturer
C). Automobile manufacturer✔️
9- Actual overhead costs appear:
A). On a job cost sheet✔️
B). In the work in process Account
C). In the Financial Goods Account
D).In the Manufacturing overhead Account
10- Which of the following is a cleaning account?
A). Manufacturing Summary
C). Depreciation Expense✔️
D). None of the above
11-Which of the following eliminates details from the working trial balance by classifying and summarizing similar or related items?
A). Lead Schedules
B). Control accounts✔️
C). Supporting Schedules
D). Accounts analysis
12- Which one of the following would be least likely to be considered a control objective?
A). Safeguarding assets✔️
B). Detecting management fraud
C). Accuracy of accounting data
D). Adherence of managerial policies
13- Which one of the following assets is not eligible for initial depreciation allowance?
A). Vehicle for factory labour
B). Professional books
C). Vehicle playing for hire✔️
14- Which one of the following expenditures is admissible under the head income from Business?
A). Cost of issue of shares
B). Wealth Tax
C). Loss by fire✔️
D). Interest payable to partner
15-The face value and market value of shares remain the same is case of:
A). Public limited company
B). Co-operative society
C). Single member company✔️
D). Private limited company
16-Which of the following combination of businesses makes different types of goods and have in common either raw material or final product?
17-The status of chamber of commerce and industry in Pakistan is:
B). Association of persons✔️
C). Limited company
18- Discovery of business opportunities and arrangement of property, funds and management ability to set up a business is called:
19- Which of the following financial statements reflects the overall financial position of the business?
A). Statement of cash flows
B). Income Statement
C). Balance sheet✔️
D). Statement of owner’s equity
20- Which of the following is an intangible asset?
A). An investment in marketable securities
B). Leasehold land
C). Loose tools
21- Expense is recorded in the accounting records when:
A). Cash in paid
B). The purchase order is placed with the supplier
C). Purchases are made
D). None of these✔️
22- Which of the following accounts are not closed at the end of an accounting period?
A). Revenue accounts
B). Expense accounts
C). Drawing accounts
D). Asset accounts✔️
23- Under periodic inventory system cost of goods sold is determined and recognized in the books of accounts.
A). At the time of purchase of goods
B). At the time of sale of goods
C). At the end of the year✔️
D). None of these
24- Which ratio indicates a firm is ability to pay current Liabilities in the shortest possible time?
A). Current Ratio
B). Equity Ratio
C). Debt Ratio
D). Quick Ratio✔️
25- Financial Statements prepared by a business firm are most likely to be:
A). Fully reliable
B). Tentative in nature✔️
C). Relevant for all types of decisions
D). Always misleading
Lecturer Commerce Online Tests