1. Which of the following is an artificial person recognized bylaw? A. Limited c
ID: 2457766 • Letter: 1
Question
1. Which of the following is an artificial person recognized bylaw?
A. Limited company
B. Partnership
C. Foundation
D. Trust
2. Which of the following enjoys the benefit of limitedliability?
A. Limited company
B. Sole-proprietorship
C. Foundation
D. Trust
3. Which of the following business has the burden of unlimitedliability?
A. Sole-proprietorship
B. Single Member Company
C. Public Limited Company
D. Private Limited Company
4. Which of the following business is formed by the approval ofState Bank of
Pakistan?
A. Money Exchange Company
B. Non Banking Finance Corporation
C. Trade organization u/s 42 of the Companies ordinance 1984
D. Corporate Brockage House
5. If the holding company owns more then 50% but less then 100%shares of the
subsidiary company then the subsidiary type will be termedas:
A. Partially owned subsidiary
B. Wholly owned subsidiary
C. Direct subsidiary
D. Indirect subsidiary
6. If “A” is subsidiary of “B” and“B” is a subsidiary of “C” then which ofthe
following statement is TRUE?
A. “A” is not a subsidiary of “C”
B. “C” is holding company of “B”only
C. “C” is not holding company of “B”
D. “A” is subsidiary of “C”
7. Which of the following is recorded under Long TermLiabilities section of the
Balance Sheet?
A. Creditors
B. Provision for Taxation
C. Dividend Payable
D. Debentures
8. Which one of the following is NOT the component of cost?
A. Import duties
B. Installation costs
C. Cost of site preparation
D. Transportation outwards
9. Which of the following is an example of RevenueExpenditure?
A. Transportation paid on machinery purchased
B. A second-hand car was purchases for Rs. 7,000 and Rs. 5,000were spent
for his repairs and overhauling
C. An additional room was constructed at a cost of Rs.15,000
D. Carriage paid on goods purchased
10. Which of the following costs can be capitalized?
A. Assets that are not currently in use because of excesscapacity
B. Assets that are ready for intended use
C. Assets intended for sale or use that are produced as discreteprojects
D. Assets under construction for entity’s own use
11. Which of the following is NOT Qualifying Asset?
A. Power plant being in the process of manufacture
B. Inventories requiring a substantial period formanufacturing
C. Inventory routinely manufactured
D. Special order for a special inventory that will bemanufactured in 5 months
12. Which of the following is an identifiable non-monetary assetwithout physical
substance?
A. Tangible Asset
B. Floating Asset
C. Intangible Asset
D. Circulating Asset
13. Which of the following is the systematic allocation of thedepreciable amount of
an intangible asset over its useful life?
A. Depreciation
B. Depletion
C. Amortization
D. Impairment
14. Which of the following Method is suitable for calculatingthe cost of inventory
when actual costs of individual units of merchandise can bedetermined from the
accounting records?
A. FIFO Method
B. LIFO Method
C. Specific Identification Method
D. Weighted Average Method
15. Which one of the following methods for inventory valuationmay be misleading
when the units are identical?
A. FIFO Method
B. LIFO Method
C. Specific Identification Method
D. Weighted Average Method
16. Which of the following is NOT the Classification of CurrentAssets with respect
to the Companies Ordinance 1984?
A. Cash in hand
B. Bank at bank
C. Marketable Securities
D. Premises
17. What will be the Book value of asset if its Original cost isRs. 50,000;
Accumulated depreciation is Rs. 20,000; and Depreciation expensefor the year is
Rs. 10,000?
A. Rs. 70,000
B. Rs. 80,000
C. Rs. 30,000
D. Rs. 40,000
18. Which one of the following is NOT an example of FinancialRisk?
A. Market risk
B. Security risk
C. Credit risk
D. Liquidity risk
19. Which of the following schedule provides disclosurerequirements for Non-Listed
Companies under Companies Ordinance 1984?
A. 2nd schedule
B. 4th schedule
C. 5th schedule
D. 6th schedule
20. Which of the following is related to the qualitativecharacteristics that make
financial information useful?
A. Understandability
B. Comparability
C. Both Understandability and Comparability
D. Reliability and Relevancy
Explanation / Answer
1- A 2- A 3- A 4- A 5- A 6- D 7- C 8- B 9- D 10-D 11-B 12-A 13-C 14-C 15-C 16-C 17-C 18-B 19-C 20-CRelated Questions
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