Contents ‘Advan Accountin 2 & Auditing Principles of Accounting Financial Accounting Cost Accounting Audit Law of Contract I Ti Income Tax s Economics | < Business satrenels & Statistics Public sery@btonmision Lahore Paper 2011,Advanced Accounting And Auditing uoks of eriginal entry are calle ch)Worksheets (None of these2.2, For preparing halunce sheets prepaid expenses ace shown as part of (apLiability (hE quities (chdsscis” {al)Nong of these Linpaid and unrecorded expenses are cated (a}prepaid expenses. (b)Acerued! expenses (chAdditional expenses (d)None af these Amount, cash or other assets removed from business by owner is: (a)Capiual (biDrawings {chAssets (diNone af these Under the diminishing balance method, depreciation amount is: {ajpayment (bIRLeeipts {eExpenditurey’ (QyNone of these Users of aveounting snlocnstion include {a)The Tax Aullorities 4e)Creduors {uj Nome of these The business form (s} ‘owner (5) is Care} per the: {a)partnership thyproprictorsity only (eiCorporation only (dhparinership and proprictorship (e)None of these The investment of personal assets by iheowser (u)lncrease total assets aad increases owners equity” (hylncreascs Lotal assets only (¢)Has no effect on assets but increase owner's equi sO wy ae Rs {increases assets and Nabilties (e)Name of these 9. All atthe folios ing are forms of business ‘organizations execpt {a)propnctorship (b}Comporation {e)Relailer (dipartnership 10, Leonomie resourees of a business that ave espeetod to be of henelit in the faqure are eelevted to as (abLiabilitics ——_CiQwner's equity (c)Withdrawals (d)Asseis” (c}None of these 11. An owner investment of land into the busmess would. (a) Decrease withdrawals (bpincrease linbil (eincrease 0 (dyDecrease: (o)None pt thasew hse of supplies wouls: ‘owner's cqpily Feast liahilities Gp Have no clicet on total assets jdiNone of thesey An awner investment of cash inno tie business would: {a}fncrease assets (byDoerease liabilities {c}lucrease withdrawals {d)Deerease owner's equity {o)None of these 14, The payment of rent each month for ‘fice space would {a)Decrease total assets {b)Increase liabilities {e)increase owner's oquity {é)Nane of these £5, Which one of the following accounts would usually have a debu blance? (avCash quity (hiCreditors {e)Accounts payable (aiSalaries Expense” (e)None of these 16. Quick assets include, which of the fallowing? qayCash (b)Aceounts Receivableoat Accounting And Auditing 2 iventories Only (a) and (by setNone of these |) Not income plus operating expenses in al wo: iNet Sales (bil ost of goods available for sale fowest of goods sold viyGeuss profit? ePeone af these maximum number of partners in vhistan ean be Fixed at the fillowing: {b)s0~ (W)None of these ince sitect is always prepared: 1 Far the year ended iy Asuna specific datew (cy None of these Punng the Audit of Meat packers Ltd, yu are assigned to cover the audit of he payeolls of 800 employees numerate ie lost, you would cary out fo ensure sit Lt All cusployces are genuine [hypayments are only made for work done (e\Statuiory documents are property ‘ected its accordance with the law. wiproper allocation of wages is made 19 vious departments” wl iieaearde ie ofa TERS «ise if wesourees is referred to (a}4in opportunity cost” (eta diflerential cost (aA sunk cost teione of these 1A cost center ist {a} A.unil of production in relation to which costs are ascertained, 1 Which is responsible for fing direct costs. + Nort of the fuclory overhead system by which eusis are gathered. location or departaveot Which incurs eas, atc of these A Sok: (a)May Change is total when such change isnot related to changes is production, (by Will not change in total because it is not related to changes in production. (c) Is constant per unit for cach unit of change is production. (a)May change is total, depending on production with the relevant range. (e)None of these 24, Completion of a job is a result in: {a)DR Finished goods CRWIPY (bIDR Cost of goods CR Finished goods (c)DR WIP CR FOH control (@)DR FOH control CR FOH applied {e)None of these 25. Operating cost is aften pamed as: (a)Manufacturing cob pls commercial expenses (bjprime cost tory overheads. (c)Direct mplgfial plus direet labour. (d)Selli ‘administrative expenses” (ON ese such as rent and depreciation of so wilding are shared by several iments these are: 26, QPlaringirect expenses 3 (b)Direct expenses ~S (cMloint expenses (AAU of tie above (e)None of these 27. Ifunder-applied FOH is closed tocost of goods sold, the journal entry is: (a)DR cost of goods sold CR FOH control (b)DR FOH control CR cost of goods sold?” ()DR FOH control CR profit loss account (d)None of these 2B. Based on this date Re-order level is: {a)4500 units (4)3900 units {c)1200 units (4400 univ. 29. A credit balance remaining in }OH control is called (a)Over applicd overinead™ (b)Under-applied overhead (c)Actual overhad (None of these W, Direct material cost plus direct labour cost is called:Advanced Accounting And Auditing (alprime cost” (b}Conwersion cost (clpreduct cost (d)All of these (e) None of these 3). Productivity means: (a)The ability to produce’ (b)Al units produce {c}Good units produce (d)None of these 32. Eeonomic resources of a business thal are expected to be of benefit in the fisture are referred to as (a)Lisbilitics —(b)Owner’s cquity (c)Withdrawals (d)Asscts¥” (e)None of these 33, Short-Term Loan can be best described as (a)lf the period is three years (b)If the period is less than one year” (e}l0 the period is aver one year (d)None of these 34. Preparation of final financial reports is governed in Pakistan under: (a)No Law (b}Companies Ordinance (e}None of these” 35. Inventory tumover is calculated as under: (a}Cost of Goods sold closing Inventory Sales~” (b}Gross profit Closing Inventory sO (c}Opening Inventory Q (diNone af these & 36. There is a difference between: {a)Worksheet and Balane: worksheet asY . (by Worksheet and p ‘Account (c)Combination rezitts of profits and financial position (d)None of these 37. Preparation of annual report ofa firm is governed und: (2)Partnership Act 1932 (b)Linder partnership Deed {c) None of these 38, Reium of Equity will be calculated as under: (a)Operating profit x 100 Equity {b)Net profit x 100 paid up Capital only” id Loss (cone of these 39, Prime cost is calculated as under {a)Manufacturing Cast*Cast of Gonds Sold (b)Direet material plus factary overheads {¢)Direet Labour+Dircet Material” {d)None of these 40, Increase in income constitutes: (llnflows’ —_{b)Outfows (e)None of these 4]. Audit and special audit are the same: {a)in Insurance Company (b)In Banking Company” {e)Nanc of these 42. Rent of the premises constitutes variable expense for cast on, (ayTruc sev 43, Principal ands Markup payment withis es long term liability for the balance shect of a (OVFalse” ing Capital finance can be termed * Running Finance” in a limited ompany. fa}True (biFalse” 45. Conversion cost is caleulated as under: {a}Labour plus materials (b)Labour plus overheads~” (e)None of these 46. Current Ratio under: (a}Current Liabilities Current Assets {b}Current Assets Current Liabilities” (e)None of these 47. The need for keeping a record of income and expenditures in a clear ant systematic manner has given rise tw the subject of: (a)Bock keeping {b)Ascounting Cycle” (c)Manufacturing (d)None of these 48. If proper books of accounts are not kept in a business, the amount of profit {a)Can be ascertained (b)Cannot be ascertained” (c)Easily ascertained (d)Mone of these can be calculated asAvance! Avemuting And Auditing W. The state under which Wansaetions ae recoréed chronologically inthe books — of aiecoums is called (a)Sunmarizing —(b}Classifying {c)Recording —¢)Nane of these $0. Gook-Keeping is mainly — concerned with: (a}recording ef'a financial data-relating ta ‘usiness transaction.” (bldesigning the system in recording, classifying, summarizing the recorded data (chinterpreing the data for internal and extemal users (wyNone artbese 51, The lerms expense and expenditure are: (a)Same in Nature (byDufferent in Nature (c)Oppesite in Navure (ayNone of these 52, When yoods are given away as charity or fee sumnples, the purchases weeuunt should be: ‘ (a}Dehited (b)Credited¥ (c)Recorded in Balance Sheet ()None of these =\ $5.The sale ofa business ase on ens reconded in (a)Sules Houenal {yGeneral Joursaly (c)Cash Receipt Joumal (c)None of these #4. The discount account jog" {a)personal Account (b)Nominal Aec dc)teul Account (a) Asset Account Xe)None of these 53, The payments side of the eash book is. ner Cost by Rs 200 when overdraft as per bank statement is the starting point: (a)Rs 2040 will be deducted” (b)Rs 200 witl be added te)Rs 400 will be added td) Name of these 56. AIL the ditcet expenses are charged to: (a)Balance Sheet & ~— (bAccrued Jn (h)Profit and Loss Account (c) Trading Account (d)None of these 7. Those liabilities which arise only on the happening of some event, are called: (a)Current Liabilities (b)Contingent Liabilities” (c}Outstanding Liabilities (d)None of these $8, Marshalling of balance sheet means: {althe ordering of its assets and Viabilities” (bythe totaling of its assets and liabilities (clexcess of assets over liabilities (a)none of these 359. Commission rec: considered se advance isto be (a)Outstandi (aur Income’ (el IF these vision for discount on creditors is ope not provided in keeping with he principleof —* (a) Materilality {c} Conservatsim” {e)None of these GI.Which one of the following in not considered the permanent part of the accounting record: (alournal (b)Tnal Balance (c)Balance Shect (d)Final Accounts (e)None of theser’ 62, A working paper which is prepared by the accountant for his own convenience is called: {a)Work Sheet (b)Cash Flows Statement (c)Balance Sheet (a)Final Accounts (e)None of these 63. Any expenditure incurred to increase the profit eaming capacity of the concem isa: ; (a) Revenue Expenditurey” {b)Current Expenditure (c)Capital Receipt (b)Consistency (@)RealizationAdvanced Accounting Ana Auditing (@)Capital Expenditure 4e)None of these 64, Depreciation on Gxed example of (a)Revenue Expendirureé™ {b)Capital Expenditure (c)Doferred Revenue Expenditure (d)None of these 69, The capital receipts are shown in the balance sheet on the: (a)Liability Side” Ac)Debit Side (d)None of these 66.Enor due to wrong expenditure between capital and revenue as regarded as: (a)Error of Omission (b)Emrer of principle” ic)Compensation Errors (d)Error of Commission {e)None of these 67. The heat treatment department at Noort pipe is the third department in.a sequential process. The work in process “ accaunt for the department would consist of: {a)Cost transferred in from the prier depariment (b)materials costs added in the heat treatment departaient ~ fe)Conversion costs addled in the h treatment department (d)all af the above” @ fednone of these 68. Costs in the beginnis inventory are addi cunent period calculations by: {a)The FIFO cost method (byThe weighted average method (c)The quantity schedule method (A)LIFO method (e)None of these 69, A chemical process has normal wastage of 10% of input, In 8 period, 2500kys of material was input and there was an abnormal loss of 75 kgs. What quantity of goad production was achieved? (a)2175 Kgs”. (b)2250 Kes assets is an (b)Asset Side rk in’ process the cost of the ‘making units east allocation as 3 (ees Kes (ay42S Kes 70.Premium on issue of shares can be used for (a)Payment of Dividends (b)Writing off preliminary Expenses” {c)Paying Fees to Directar (d)Redemption of debentures (e)None of these TL. Right ‘shares mean the are: (a)issued to promoters for their services (bjissued to holders of convertible debernures (c)issued to directors of the campany {djoffered to the existing shareholders” (e)None of these 72, Pre-incorparation, shares which tobe credited ‘aceaunt above the li account below the line 73.,@hedexeess, of purchase price over the asseis is: fa) Goodwill” (b)Capital Reserve (e)Preliminary Expenses {e)Share premium {e}None of these 74, Statutory report in necessary in the cate of (a)All companies (b)Public Limited Companies” (c} Forigen Limited Companies (d)Private Limited Companies (e}None of these 75. Dividends are usually paid on (a)Called up Capital (b)Paid up Capital” (c)Paid up capital eall in advance (d)Subseribed Capital {e)None of these 76, Provision for taxation ofa previous year was Rs. 100,000 and tax assessed for that year Rs. 80,000. The adjustment for this is; . (a)a debit of Rs. 100,000 above the lineAdvanced Accounting And Auditing (b)a credit of Rs. 80,000 below the line {c)s credit of Rs. 20,000 above the line (cfu credit of Rs. 20,000 below the line (e}none of these 77. Amount set apart to meet losses 10 bad debt is a: (a) Provision” (e)Liability (c)None of these 78, Advance payment of tax is in the mature of: (a)Asset (b)Revenue Expense (e)Liabitity (d)prepaid Expense” (c)None of these 79, Evaluative-positive or negative- concerning peaple, objects, or are called: (a)perceptions te)Beliets {ciNono of these 80. The auditor is required to report that Financial Statements are: fayTrue & Correct tb)Complete & Correct (eyTrue de (d}Covering all required records (epNone of these 81. The auditers are appointed by che (biReserve (Contingent Liability events (b)Attitudes?” (d) Values following authorities: factors (yen, SO (c}Share Holders” org (e)None of these B2.Interim audit, is for cxamining the account fo (ayFull One Year (byNext One Year {e)Previous One {@iFor a part of currémt year” {e)None of these. 83. Payment should be made preferabiv through (a}Cross Chequey (b)Bank Draft (e)pay Order (d)Cash Basis {e)None of these 84. The purchase of machinery on account world: (a) Increase an asset and decrease anotney. asset, (b)increase an asset and decrease liability. @ 6 (e}lnerease an asset und increase liability” {d)Decrease an asset and increase liability 85. In general, the aceounts in the Incoms Statement are known as; (a)Real Account (b)Contra Asset (c)Nominat Account” {d)lnrecarded rever accout in gencral terms, financial assets appear in the Balance Sheet an: jajFace Value’ {b)Current Cash Value: (eyCash (Estimated future sales value 87, Which of the following is feast 5.4 measure of short-term ()Debtor Ratio {(5)Curremt Rati Ss {c)Cash How 86 ‘important liquidity, Operating acticitites~” td)Quick 88. Lzmai come was Rs 4,00,000 in 200; Rs 160,000 in 2004 what payed merease in net incune ru ‘Off let the decline in peofits in ore (a)S0% ce)20% (d)70% 89. Extermal ises of financial accounting information in cude 1 of u e following excep. (a)lnvestors” —_(b)[_abour Unions (cline Manager (d)General Public ‘90. A fixed budget is: (aJA budvet for single level of activity (BJA budget which ignored inflation (ell sed only for fixed cast” {djAn overhead cast budget 41. ileavy expenditure on advertisement — of anew product is a: (a)Capital expenditure (bJRevenue expenditure (c)Deferred Revenue expenditure (@)None of the above 92, Subscriptions reccived in advance is: (a)An Income. (bJAn Asset (c}A Liability” (dA Loss OeAdvanced Accounting And Auditing OR. At the time of admission of a new partner good will raiscd should be ‘written off ie {a)New prolit sharing ratio {b)OId profit sharing ratio {c)Saerificing ratio (dxGaining ratio O4.A and B are partners in the ratio of 2-1 They admit © for 1/4 share who conttibuics Rs 3000 fer his share of goodwilf The total value of the goodwill ofthe firn is: (a)Rs 3,008 (bJRs 9,000 (ORs 12.0004 — (ARs 15,000 95, Sales is Mustafa of Rs 10,000 not recorded in the books would affect {ajSales Account (b)Mastafa Account {c)Sales Account and Mustafa, Account (d)None of the above 96. Depreciation is a process of: {a)Valuation’” —_{b}Allocation (e)Both a&b — (d)None of these 97. Loss on sale of an asset should be ‘weilten off against: {a)Share premium account (h)Sales account {e)Depreciation fund account (d)None of the abovew’ 98, Income and expenditure at (a)Cash in hand {b)Surrplus or deficicmngly’” {e)Capiial account {d)None of 99. Which of the the work sheet. (allt is the fonn, whieh aa accountant uses for his own aid and convenience (b)N assists in the orderly preparation af the adjustmems and financial statemcuts at the end of the account periods. {cpt can substitute tor Journal and Leder. (d)Only a & bare true” 100, The post closing trial balance will {a}Contain only income statement accounts, (b)Contain both batance sheet accounts (2) & Teveals: rue regarding (e}Contain both wmcome Statenient and balance shect accounts” (4)Be prepared before closing, emtnes are posted fo the Lodger. 1OL-The cost of ponds and service used up in the process of obtaining rcvenuc are called: (a)Net Income (b)Revenue (c)Expenses*” (Liabilities 102.State which of following are characteristics of jab cast (iHomogencous products (ia}Customer driven production (iiijComplete production possible within a singl¢ accounting perjod_ fa) (i) only: 66 Ab} Gi) and (iagtadiy {e){inb and Ha) only i$) only above which of ihe foliowing are leristics of contract costing: fe ete 4ii)Customes dnven production (ii)Short time sealv-Ziom conmuncement to completion of the cost unit (3) (bind (i) only (b) (and (is) amty {e) {it} and (in) only (a) (ii) only {e}Nane of abave 14.The budyet vost allowance activity level of 4,000 units is. (a)Rs 7.200 (b) Rs 14,700 {eJRs 17,200 (djs 22,200 (eNonc of these values 115 Direet costs ure: {a)Costs which can be identified wath a cost center but not identified to a single cost unit (byCosts which can be identifigd with a single cost unit (e}Costs incurred as 1 dizoct result of a particular decision {a}Cosls incurred which can be attributed to 8 particular accounting periad. (e)None af above for anAdsunged Accounting And Auditing, JOG, A master budget comprises 1a)The bwslgeted profit and loss account thy Phe budgeted eash flow, budgeted loss account and budgeted blues sheet. te) the budgeted east flow 4d) The eallire set of budyets prepared” fe)Sone of abowe Lo7. Fhe hest description ofa by-praduet is. a Joint produet which: {ajHus no economics value {h) Accouuts for a relatively stall proportion of the total sales value of the production process (evAccounts for a relatively small praportion of the total valuc of the xh lin process. (Wl new tw be disposed off a a cost (e}None of above 108. What iype of budget is designed to take inte account forecast changes in costs, prices ete taiRulling budget (b)Funetusnal Budget (elFleuble Budget qd) Muster Budget” (etNone of then 109 Working capital és the {aSiflcctive capital of the compai the business isin lulls (hyCapital borrowed form d (c}Dillference between 1 anil current liabilities (a)None of them 11, The most aces inoome is (liv match the costs with revenue (byLe find out this difference in net worth ason iwe dates.” (cho apply normal rate of return on capital invested. (dyNone af above 111. Up what level Agriculture income is exempt from tax? {alts $0,000 (bIRs 100,000 {c)Futally exempt” (d}Torally taxable so unreal asscis method of measuring (eJNone of the above 142. Average relief is available on the following execpt {a)Donalion fo: Charitable purpose {h)Investivont in Shares {e)Retirement Annuity scheme” {d)Mark up on Housing Finance Scheme {¢)Donution of Baitul-MalFund {hNone of above 113. Special tax celief is granted ta a senior citizen if his age is {a)50 years or above (b}60 years oF abovew” (e)6S years or above (a)None of the above L4.When prop. Copiers shes of a company, Gi patents, Trade Mark and deSighs tome under the head oft (aFined gets cb) Fieti ene te iL Assots ellaneous Expenditure fone wf above comparison lo the excemal auditor, an internal avditor is more likely to be concemed wil (a}lrtemal Adininistrative Control {b)Cost Accounting procedures (e}Operational Auditing (d)Internal Accounting control” (e}None of above 116.An auditor's unqualified short form report. {a)Impties only, that items disclosed in the financial statement aud foot notes are properly presented! and takes no po: the adequacy of disclosure. (b)lmplies that disclosure is adequate im the finanetal Statements and foot notes. (e)Explicitly states that diselosure is adequate in the financial statements and foot notes (d)Explicitly states that all material items have been disclosed in conformity with generally accepted accounting, principles.“ (e}None ef above ion onAdvanced Accounting And Auditing 117, The role of finance fumetion in the future will be 4a) Factieal ¢b)Professtonal Advisor” 4eyStewards (Specialist tem member {c)None of above 118.Jn principle current Assets are Font 4a)Retained Earning, ¢bjLong term debis (e)lssuc of fresh Capital’ (d)Current Liabilities {e)None of above 119. A non-banking asset is: {a}liom of office equipment {b)Bank premises. te}Secured property acquired fom defaulting horrower (d)All of the ubove (e}None of the above? 120,.When preparing 2 production bude, the quantity to be produced equals {a}Sales quantitys Opening Stock+Clo Stock AbiSates quantity-Open Stock (elSales quantity-Opening stock-C! ee stock < (d)Sales quantity (elNone af the above EAL Which of the follow the nature of un asset? (a)Sontething (b)An ceononi provide some business. (c}The amount of the owner's invesiment ia business. {d)None of these 122.A halunce sheet is prepared to find ‘out financial position ef a fiem: 4wiFor a specified period {b)On x particular datey” (c)AL the ume of sale of business: (None of these financed sf desesibes jy market valuc c, which will nefits, owned by a 1g stock + Closing ee 3. The preparation oF * {a)Constitutes createc ts of 0: for stalcinct 8 thy seuss flr wa adjusting: ent {e)pravides the a jourmalizing anes coutries,¥ {dyNone of these: 12M, Assets would be overstated" aecessicy adjusting entry was omiied “a1 {a)Expired Insurance (b)Accrucd Sala 4e)Accrued Interest Harned {d) None of these The book ape vtabhe assel is hest del fa)The und asset {b)Phe pri ict wel Fe offered (Gt Zale. te lated de;sreciation of ne asset 5 squisitio jone of these hich of the fotlowing ‘snot an inns ble asset? LA)A pate: (hy ck {c)Anis wi it td) Nune of these” 132.4 company usent raivo CF 2 to | atthe end of year |. Woieh oue of the iB Trans ution Wili ineaease tins (b)Deciaration of a 20% cash divwicral (elColleetign of iarve aecous receivable (diNone of these 127. U sales inerease by ¥0%e from year] 40 2 and vest of pouds suld anerews only 6%, the gross peodii on sales will uicrease thy (u)None of these 128. Which of the following amounts appeat 1 both the income statement aund balance sheet? {a)Net Income" (bpAccumulsted (e}Dividendsanced al Auditing counting (pNowe off these: 129, Hoth Ue accaunls for depreciation expenise aml accuraulated Uepreciation. (u)Are elosed at the end of the period” (b)Appear in the Adjusted Trial Balance Columns of the worksheet {c)Appear in the Trial Balanec Columns of the worksheet {d)None of these 120, When a partnership in liquidated (a)Aay cash distribution to partners is allocated according to the profit and toss staring ratio, (b)Cash is distributed to each partner according ta his or her capital account balance before the sale of purlicrship. assets.” (e)Any gain or loss on disposal of panuceship assets is divided among, the partners according to their relative account balances. (d)None of these: 131.In projecting the future profitability of a trading company. investors will be concemed with changes in (a)The gross profil rate (by The quick ratio (c)Ssles volume (d)None of these 132.Revenuc is most common ced at the time when: @ (u)Cash is collected (b)The order is r (@)The sale in my (a)None of t 133.Which of tho® used sold? (a)purchases, inventory, and sales returns. (b)iross profit, purchase returns and carriage inward (c}lnventory, net sales and purchases” (d)None of these: 134.Which of the Following is ascertained by drawing up an income and expenditure account? {a)Cash is hand {b)Surplus or Deficicney” lowing list of accounts. is to compute the cost of goods least gS (@)Capital Fund (d)None of these 135.0n April 1, Hassan & Company received and paid a Rs, 700 bill for the advertising done in March. In addition to this bill the company paid Rs. 6,100 during April for expenses incumed in that month, Hassan & Company paid Rs. 3,600 as salary to cmplayecs for work done April. Based on these facts, total expenses for the month of April were: (Rs 6,100 (IRs. 6,800 (6)Rs, 10,700 (d)None of these” 126: ra a had current assets of Rs. T2000 ad nt ratio of 2 to 1. The = 1s capital must have (oes (by Poo Sfthese jond holders would be most in which of the following (a) Quiek ratiow” (b)Inventory tumover (c}Times interest earned (d)None of these: 138.The amount of overtime 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 139.Whieh one of the following statements. is incorrect with respect of extemal auditors: (a)Extemal auditors are independent of ‘organization (b)The responsibility of extemal auditor is fixed by statue: {c)External auditors report to the members (a)External auditors work many range ‘over many areas of aclivities as determined by the management” 140:The first auditor of a public Limited Company is appointed by the directors interested.Advanced Accounting And Auditing u (41830 days of incorporation (hjinvesiment in Shares (b}60 days of incorporation (e}Mark-up on housing finan (e190 days of incorporation (d}Coniribution to employees Children (a) 120 days of incorporation education fund 14], Audit working papers arc the properly of 149. The mest iexportant reason for having an (arCliem (h)Accountant (etAuditor” U)Registrar of Companies 142. Which of the following would be least Tikely 4 be considered an objective of system of intemal control (alCheeking the aceuracy and reliability of aceounting dara (hyDeiceting management fra (eyEncouraging adherence of managerial policies (d)Safeguardiny assets 143. Dividend income is subject 10 ut source il (a0 thst [en 0% {A)1S% 144, Tax deducted al source will be treated as: (a) Taxable (bo xempe (ciDeductible from nei tay 145. One cof athe huske posed Ot bei combinalion is: NC (aVTe provide hotter services to th comunity (brTo sell the goods at co Ye prices {e)To reap profit by ci competition’ * (uy To increase sale 140. A coopera ciely is registered under cooperatigg Society act of: (apto2se (6)1930, (cH984 (yas 147, Which one of the following is not considered a legal document of joint stock company”? (a)Memorandum of association (bpArticles oF agsociaiion (e)prospeciuse” (d)Shares 148, Average relief is allowed on the following expenditures except: {a)Dunation for Charitable purpose” annual auslit is to: (a) Peovide assu thers stake holders that financial statements are dependable, {b)Enable Dircetnrs to aveid persemal responsibility for amy deficiency in the Financial statement teJMeet the requurement of government tdprovide vssarance that friad, (Cuny ‘exists, will be broyght to inh. 188A job-ordebe beading systein is mast appropriate, hich vf the foflewing types of yuu ng? falFloppahilling (i manufacturer?” ie mobile manufacturer hipbuilders he predetermined overhead awe is (aiDetermined at the end ef the accounting period (h)Determined by divicing the allocation base by the estimated averhiead (eiUsed in a normal cost system: Gi) Never applied to the work in process at the end of the peringd 152, Actual overhead costs sppears (a1On a jab cost sheet (bjln the work in process AEcount (eiln the Financial Guods Account (diln the Manufacturing Overhead Account 183. Which of the following is a cleaning account? (a)Munu facturing Summary (b{Mamufucturing Overhead (c)Depreciation Expense (WAccumulated Depreciation” 154, The basic concept which recognizes that the cost of internal control should nol exceed the beuctits expected to be derived is known as (ajReasonuble assurancey”Advanged Accouming Am Av hi Munagerient feiLinsted lab {é)Manageniont hy cxcey ot che (h)Canteal aceourise” (ePSupporting schedules. tdyAccounts unalysis He. Which one of th following wouht b Likely te be considered a control obigctive! talSaieguarding asscisy Hh yDerecting felAecuruey of sceounting data {d)Adherenee of thunagerial policies WP. Which of the following se (aiCheck hat ts ainethod of internal contol fore small business: AhyEwo iypes of audis tests are compl tests und substantive tests” te)Materuality and audi risk have direct telationshp Ad) Intemal contra! consists al ho accounting contrals and addministy controls 148, Which of che purpose of eval (aiComplianee with audit (biCheching efticieney fenssuance af letter intemal controt ()Dewnnining nate af substantive audit test (edNone oF the 149, Which one of the following assets is ol cligible for initial depreciation allowance (alVehicte for faetury labour dh)prolsssionat books (eWehicle plying for hirev aliShip 18, Which one of the following is an ayncultweal sncome? (wikuvehy ascome from mines wwemient frail xe Pe 2 from cultivation of ti from sale of irrigation water felineo [dJincome fron poultey Farin ISI Woick one of the following expenditures as admissible under the head income from Business? LaCost afssue of shares no) Wealth tax {ellos by trey’ (a)Inicrest payable we parmer 152. Which of the following rental income is exempled item tax under the head ‘imeome [rom property’? Lalproperty come bel wmer Lust ied residential property tc)hicome frome Or! building tu) Ail ef thes “iad market value of ute limited company cof the following combination of inessus makes different types of goods and have in common either raw jaterial er final product? lajHtarscontal Th)Wertiealy teiCienlar 18) ateral 185. The status of Chamber of Commerce and Industry iw Pasta is: (ayParuseeship {b)Assuciation af persons” fc)Lirnited company (d)Club 156, Markets are necessary because: {ayDemiand always excceds supply {b)Bartcr cannot work properly {e}Competition in encouraged (d) Buyers and sellers are different peoplew 187 Discovery of business opportunities and utaogement of propery, funds and management ability to set up a business is ealled: {a} Incorpation samation (byhmtegration (u)Premotion?