Financial Accounting

Question No: 1 

•  Rs. 3, 41,000
•  Rs. 3, 50,000
•  Rs. 3, 59,000
•  Rs. 59,000

Question No: 2 ( M - 1 ) .

Particulars Rs.

• Rs. 2, 25,000
• Rs. 2, 50,000
• Rs. 2, 75,000
• Rs. 75,000

Question No: 3 
Consider the following data:

•  Rs. 49,000
•  Rs. 55,000
•  Rs. 1, 25,000
•  Rs. 1, 03,000

Question No: 4 
Find out the missing value of an Accounting Equation with the help of given data:

•  Rs. 60,385 owner's equity 
•  Rs. 61,385 owner's equity 
•  Rs. 99,885 owner's equity 
•  Rs. 99,385 owner's equity

Question No: 5 
Find out the missing value of an Accounting Equation with the help of given data:

•  Rs. 2, 01,000 liabilities
•  Rs. 1, 11, 000 liabilities
•  Rs. 2, 90, 000 liabilities
•  Rs. 2, 91, 000 liabilities

Question No: 6 
When the process of production is completed, all the costs must be charged to:

•  Raw material account
•  Work in process account
•  Finished goods account
•  Merchandise account

Question No: 7 
Which of the following assets are shown at written down value in balance sheet?

•  Current assets
•  Liquid assets
•  Floating assets
•  Fixed assets

Question No: 8 
Which of the following asset is NOT depreciated?

•  Factory Buildings
•  Office Equipment
•  Plant & Machinery
•  Land

Question No: 9 
The main goal of Bank Reconciliation Statement is to determine:

•  If the discrepancy is due to error rather than timing
•  If the discrepancy is due to timing rather than error
•  If the discrepancy is due to error rather than amount
•  If the discrepancy is due to amount rather than timing

Question No: 10 
Sale proceeds of goods are an example of:

•  Revenue expense
•  Capital expense
•  Capital receipt
•  Revenue receipt

Question No: 11 
Which one of the following is NOT true about revenue expenditure?

•  These are the running expenses of the business
•  They improve the financial position of the business
•  They reduce the profit of the concern
•  They do not appear in the balance sheet

Question No: 12 
Consider the following:

Eighty units were sold, what is the value of the ending inventory using the FIFO method of inventory costing?

•  Rs.260
•  Rs.232
•  Rs.284
•  Rs.320

Question No: 13 .
Consider the following inventory record:

Date Item Quantity Cost/Unit

80 units were sold, Use the FIFO method of inventory costing and determine the cost of goods sold.

•  Rs. 1,225
•  Rs. 1,015
•  Rs. 965
•  Rs. 905

Question No: 14 
If, Cost of machine = Rs.400, 000
Useful life = 5 years
Rate of depreciation= 40%
The book value of machine after one years using diminishing balance method is ?

•  Rs.86, 400
•  Rs. 1, 44,000
•  Rs. 2, 40,000
•  Rs. 51,840

Question No: 15 

•  Rs.25, 000
•  Rs. 75,000
•  Rs. 15,000
•  Rs. 1, 00,000

Question No: 16

•  Rs.25, 000 loss
•  Rs. 75,000 loss
•  Rs. 15,000 profit
•  Rs. 1, 00,000 profit

Question No: 17 

•  Rs. 60,000 loss
•  Rs. 75,000 profit
•  Rs. 25,000 loss
•  Rs. 1, 00,000 profit

Question No: 18 
The total of all costs incurred to convert raw material into finished goods is known as:

•  Prime cost
•  Conversion cost
•  Sunk cost
•  Opportunity cost

Question No: 19 
Which of the following is an example of direct materials cost?

• Polish and finishing material for chair
• A piece of wood for the production of chair
• Production worker's wages
• Depreciation expenses

Question No: 20 
Which of the following journal entry will be recorded, if the payment of furniture purchased is made through cheque?

•  Furniture account (Dr) and Bank account (Cr)
•  Furniture account (Dr) and Profit & Loss account (Cr)
•  Furniture account (Dr) and Cash account (Cr)
•  Cash account (Dr) and Furniture account (Cr)

Question No: 21 
Which one of the following statement is CORRECT about Long term liabilities?

•  These are due within one year
•  These are consist of all debts, payable after 12 months
•  In working capital, these are deducted from current assets
•  All of the given options

Question No: 22  What type of expenses are paid out of Gross Profit?

•  Selling Expenses
•  General Expenses
•  Financial Expenses
•  All of the given options

Question No: 23 
While making Income & Expenditure account, Excess of income over expenses in a specified accounting period is called:

• Deficit
• Surplus
• Profit
• Loss

Question No: 24 
Which one of the following is NOT prepared by Non profit organizations?

•  Profit & Loss account
•  Income & Expenditure account
•  Receipts & Payments account
•  Balance Sheet

Question No: 25 
Which of the following financial statement summarizes the profitability of an organization for a particular period?

•  Trading and Profit & Loss account
•  Cash Flow Statement
•  Statement of Retained Earnings
•  Balance Sheet

Question No: 26
Which of the following period is known as a fiscal Year of the Government of Pakistan?

•  1st January to 31st December
•  1st June to 31st May
•  1st July to 30th June
•  1st October to 30th September

Question No: 27.
What would be the affect on the components of the accounting equation, if goods are purchased on cash?

•  Increase in cash and decrease in equity
•  Increase in cash and increase in goods
•  Increase in goods and decrease in cash
•  Increase in equipment and increase in equity

Question No: 28 
Obligations to pay cash or un-earned incomes by the business are the:

•  Assets
•  Liabilities
•  Equities
•  Expenses

Question No: 29 .
Commercial Accounting is based on:

•  Single entry book keeping
•  Double entry book keeping
•  Both single and double entry book keeping
•  Cash basis of book keeping

Question No: 30
Word "Credit" is derived from ______ language.

•  Latin
•  English
•  French
•  Chinese

Question No: 31 
The basic accounting principle/concept according to which Business is independent from its owner(s) is known as:

•  Separate Entity Concept
•  Matching Concept
•  Going Concern Concept
•  Materiality Concept

Question No: 32

Double entry accounting system includes:

•  Accrual accounting only
•  Cash accounting only
•  Both cash and accrual accounting
•  None of the given options

Question No: 32 
An accounting system is used by a business to:

•  Analyze transactions
•  Handle routine book-keeping tasks
•  Structure information
•  All of the given options

Question No: 33 
Record the following transactions in the General Journal.