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    Accounting & Auditing Paper -I (2000)

    (1) Double entry book-keeping was fathered by:

    (a) F.W.Taylor(b) Henry Fayol

    (c) Lucas Pacioli.

    () Funds Flow !tate"ent and sour#es and appli#ation state"ent are:$(a) Synonymous

    (b) %ntagonisti#(#) &one of these.

    (') Depre#iation in spirit is si"ilar to:(a) Depletion

    (b) Amortization

    (#) Depression.

    ) alan#e !heet is always prepared:

    (a) for the year ended.(b) As on a speciied date.(#) &one of these.

    (*) +n +nsuran#e, the following rofit and oss %##ounts are prepared:

    (a) !eparate for Fire, /arine, and %##idents et#.(b) !onsolidated or "ire# $arine# and Accidents etc.(#) &one of these.

    (0) artners in akistan #an today be fied at the following nu"bers:

    (a) 20(b) *2

    (#) 3*.

    (3) Fleible budget is a budget with the following features:(a) !%anges it% 'olume o production.

    (b) 4hanges with 5ariable epenses(#) 4hanges in Dire#t "aterial.

    (6) reak 75en #an be #al#ulated as under:

    (a) 888888948888888

    F4- T T4(b) "!

    I- ! *(#) &one of these.

    (;)

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    (11) !ales budget "ust be prepared:(a) +ndependently

    (b) Depending on produ#tion #apa#ity(c) ,ased on Sales orecasts o maret.

    (1) 4onsolidation of subsidiary a##ounts in the balan#e sheet of a unlisted Holding

    #o"pany is at present in akistan:(a) 4o"pulsory(b) 9oluntary

    (c) *euired.

    (1') etained earning is synony"ous to:

    (a) Accumulated proit and loss account(b) rofit for the year

    (#) &one of these.

    (1) The re>uire"ents of an audit report for a anking 4o"pany in akistan isunder:

    (a) ?nder the anking 4o"panies @rdinan#e, 1;0.

    (b) ?nder the 4o"panies @rdinan#e, 1;6.(c) /nder (a) and (b) abo'e.

    (1*) Deferred Taation is:(a) Fied asset

    (b) Fied liabilities(c) Part o ners 1uity.

    (10) +n5est"ent 4orporation of akistan follows:

    (a) @pen-end "utual funds(b) 4losed-end "utual funds

    (c) one o t%ese.

    (13) Dire#tors eport is ---- in respe#t of finan#ial report #onstituent.

    (a) $andatory or a limited !ompany(b) 9oluntary for a li"ited 4o"pany

    (#) &one of these.

    (16) 75ery li"ited 4o"pany in akistan is re>uired by law to in#lude the following

    along with finan#ial reports:(a) atio %nalysis

    (b) !%airman3s *e'ie(#) &one of these.

    (1;) 4ash budget e#ludes the following:

    (a) on-!as% items(b) 4ash ite"s

    (#) ur#hase on 4redit ite"s.

    (2) &A@s are legally re>uired to:(a) Prepare accounts in a prescribed manner under t%e la.(b) repare

    a##ounts as desired by donors.(#) &one of these.

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    Accounting & Auditing Paper -II (2000)

    1. Fied 4ost:a. 4hanges with produ#tion

    b. e'er c%anges e'en i production capacity is doubled#. &one of the abo5e

    . 4on5ersion #ost is:

    a. /aterial 4ost B @5erhead 4ostb. Dire#t abour B /aterial 4ost

    c. Labour !ost 4 'er%ead !ost

    '. ro#ess 4osting is rele5ant to:a. !ement industry

    b. Cob @rder #ost oriented roe#ts#. &one of the abo5e

    . @perating rofit is:a. rofit after dedu#ting finan#ial #osts

    b. rofit after dedu#ting taes

    c. Proit ater deducting normal operating e5penses including depreciation

    *. % good 4ost %##ounting !yste" is:a. +f it #o"putes esti"ated #ost only

    b. +f it #annot be re#on#iled with finan#ial a##ountsc. I it enables management to increase producti'ity and rationalize cost

    structure

    0. 9erifi#ation in#ludes:a. 4he#king 9ou#hers

    b. 7a"ining audit reportc. one o t%e abo'e

    3. !tratified audit sa"ple "eans:

    a. *andomly selected items or auditb. urposi5ely sele#ted ite"s for audit

    #. +te"s #arefully sele#ted fro" ea#h group

    6. +nternal 4ontrol is totally synony"ous with:

    a. +nternal #he#kb. +nternal auditc. one o abo'e

    ;. %udit of a bank is generally #ondu#ted through:a. *outine c%ecing

    b. 4ou#hing#. alan#e sheet audit

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    12. %n auditor is liable for his annual audit of a##ounts o:a. 4reditors

    b. ankersc. ners

    11. +n#o"e Ta is le5ied on:

    a. %gri#ultural +n#o"eb. Presumpti'e Income#. &one of abo5e

    1. +f a fir" has paid super-ta, its partners "ay follow any one of the followingbeha5iours:

    a. &o need to pay in#o"e ta, e5en if the in#o"e e#eeds the taable li"it.b. ay in#o"e ta, e5en if the in#o"e does not e#eed the taable in#o"e.

    c. Pay income ta5 as reuired under t%e la.

    1'. % resident "ultinational #o"pany need not:a. ay in#o"e ta, if it s #aused under Double Taation agree"ent.

    b. +f it is not enoying ta ee"ption under the +n#o"e Ta @rdinan#e, 1;3;

    (!e#ond !#hedule).c. one o abo'e

    1. +n#o"e Ta rates are the sa"e for:a. i"ited 4o"panies

    b. ,aning !ompanies#. &one of abo5e

    1*. !uper Ta on #o"panies is:

    a. +n 5ogue in akistanb. ot in 'ogue in Paistan

    #. &one of abo5e

    10. 4urrent atio is #al#ulated as:

    a. Fied %ssets=4urrent iabilitiesb. 4urrent iabilities=4urrent %ssets

    c. !urrent Assets+!urrent Liabilities

    13. !hort-ter" loan #an be des#ribed as:

    a. +f the period is three yearsb. I t%e period is less t%an one year

    #. +f the period is o5er one year

    16. % partnership, in today$s akistan, under the #urrent law #an ha5e the followingnu"ber of partners:

    a. *2b. 20

    #. 122

    1;. 4o"bination #an be best des#ribed as:a. estru#turing of 4apital of a 4o"pany

    b. edu#tion of 4apital of a 4o"panyc. Amalgamation o to dierent types o businesses

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    2. !our#es of funds #an be in#reased by:a. Des#ribing selling pri#es

    b. +n#reasing ependiturec. one o abo'e

    Accounting & Auditing Paper -I (2013)PART-I ((MCQs) (COMPULSORY)

    Q.1. (i) Select the best option/answer and fll in the appropriate Circle on the OMRAnswer Sheet. (20x1=20)(ii) Answers given anywhere, other than OMR Answer Sheet, shall not be considered.

    1. Double ntry !oo" #eeping was $athered by%() L!" Pi#$i(%)&oy'i ('iri (") Micheal )a**er (&) (shi"awa

    http://en.wikipedia.org/wiki/Double-entry_bookkeeping_systemIt was first codified in the 15th century by the ranciscan friar !uca "acioli.

    2. Accu*ulated loss o$ a co*pany is shown in the balancesheet as%() +iability (%) As n sset(") As $oot note to balancesheet (&) one o$ these

    "rofit is recogni#ed on $redit side while !osses on Debit side.http://www.indiastudychannel.com/e%p...an-&ssets.asp%

    '. -nder the Co*panies Ordinance 01, disclosure o$fnancial in$or*ation is legally re2uired $or listed co*paniesunder%() Schedule 3 (%) Schedule 4 (") S"he&!$e (&) Schedule 0

    http%//www.secp.gov.p"/corporatelaws...*p5Ord01.pd$

    . A co*pany is considered sic" under the Co*paniesOrdinance 01 where current ratio is%() e$#w 0.* + 1(%) !elow 6 % (") Above 7.4 % (&) oneo$ these

    'ection ()5 *d+*iii+ $,1)

    http://en.wikipedia.org/wiki/Luca_Paciolihttp://www.indiastudychannel.com/experts/9625-Why-Accumulated-Losses-are-treated-an-Assets.aspxhttp://www.secp.gov.pk/corporatelaws/pdf/Comp_Ord1984.pdfhttp://www.indiastudychannel.com/experts/9625-Why-Accumulated-Losses-are-treated-an-Assets.aspxhttp://www.secp.gov.pk/corporatelaws/pdf/Comp_Ord1984.pdfhttp://en.wikipedia.org/wiki/Luca_Pacioli
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    http://www.secp.go.pk/corporatelaws...mp_,rd1).pdf(iii) "!rrent rti# hs &eteri#rte& %e,#n& 0.* +1

    *. !an"s are re2uired to prepare their fnancial state*ents as

    per $ollowing legislation%() 8ree to prepare with no legislative re2uire*ents (%) -nderCo*panies Ordinance 01(") nin Or&inn"e 1/2(&) State !an" +aws

    http://www.sbp.org.pk/bsd/(001/$2.htmIn terms of 'ection of the 3anking $ompanies ,rdinance4 1)2( the banks are

    reuired to prepare their annual accounts in the forms set out in the 'econd'chedule to the said ,rdinance.

    . 9reparation o$ fnancial state*ent o$ listed insuranceco*panies in 9a"istan is governed by%() (nsurance Act 60 (%) Ins!rn"e Or&inn"e2000(") Co*panies Act 6 (&) Co*panies Ordinance 01

    http://www.pgi.com.pk/pdfs/annual(01(_"6I7(0annual7(0(01(.pdf

    http://www.pgi.com.pk/pdfs/halfyearly(002.pdf

    3&'I' , "89'9;&;I, The financial statements have been prepared in accordance withthe requirements of accounting regulations laid down by the SECP (Insurance Rules !""!# of theInsurance $rdinance !"""%

    Insurance $rdinance !""" (Primarily# C$&') (secondary#%

    .:rading loss occurs when%() Revenues e;ceed the *atching relevantcosts. (%) Revenue and *atching costs are e2ual to each other.(") hen re$e3nt 4t"hin "#st ex"ee&sre3en!es(&) one o$ these

    'imple4 when cost *e.g. 8s. 100+ is greater than 8eenue *e.g. 8s. 0+4 then loss *of

    8s. (0+ will occur.urthermore4 'ee matching concept also.

    6enerally4 while making financial statements only those costs are undertaken which

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    $eis$ti#n(") Co*panies Ordinance 01 (&) one o$ these

    http://www.asp.org.pk/indepth/csos_coernance_resources/(.pdf;here are between 10 to 1 different laws in "akistan that may goern an 6,.

    ;=9 $,-,"98&;I>9 ',$I9;I9' &$;4 1)(5

    71. Rules. (2) (h)

    prescribe the accounts and the books to be kept by a society and provide for the audit of such accounts,.......

    CO1!" does not apply as per sec "(i) of CO1!"

    #$ 1%2 &ec " defines partnership, 'hile O*s are not businesses for sharin+ profitlosses.

    /. =or" sheet is e2uivalent to%() !alance sheet (%) (nco*e state*ent (") Tri$$n"e(&) one o$ these

    !asically, =or" Sheet is the S-M o$ !alance sheet,(nco*e state*ent and:rial!alance. !-: nature o$ wor"sheet is o$ :rial !alance.

    http://www.wisegeek.com/what-is-a-trial-balance.htm;he trial balance is an accounting listing that shows the beginning and ending

    balances for all accounts included in the set of books. This worksheetformatmakes it possible to ealuate whether or not the total debits for the period

    cited are in balance with the total number of credits generated for the same period.?hen a true trial balance e%ists4 the total credits and total debits will be eual.

    10. =or" sheet does include%() 8und >ows state*ent (%) Cash gensationstate*ent (") Cash >ow state*ent (&) 7#ne #8 these

    =or" Sheet is the S-M o$ !alance sheet,(nco*e state*ent and:rial !alance $or*ats.

    11. De?ered ta; is shown in the balance sheet as%() +iability (%) Asset (") An ex6en&it!re in in"#4estte4ent(&) one o$ these

    o Doubt4 its controersial. @@@@Deferred@@@@ not

    ADefferedA

    $an be asset or liability.

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    "ara 5 I&' 1($urrent and deferred ta% shall be recognised as income or an e%pense and included

    in profit or loss for the period.....

    ?hateer the amount of Deferred ta% is shown in the balance sheet4 it is shown as inthe 9%penditure section of Income statement under the head ;a%ation4 along with

    the current ta%.

    12.:he $ollowing represent tangible assets and are shown inthe balance sheet as%() 9eople (%) ;penses (") Revenue (&) 9##&wi$$

    It should be Itangible.option a4b4c are irreleant as they cannot be shown on 3alance 'heet.

    1'. -nder the Rule o$ thu*b a good current ratio is%() 3 % (%) @ % (") .@4 % (&) 2 + 1

    http://www.encyclopediaofcredit.com/?orking-$apital

    !urrent *atio;he current ratio gauges how capable a business is in paying current

    liabilities by using current assets only. $urrent ratio is also called the working capital

    ratio. & general rule of thumb for the current ratio is ( to 1 *or (:1 or (/1+.

    1. 8inancial analysis is a legislative re2uire*ent under%() Co*panies Ordinance 01 (%) 9artnership Act67 (") oluntary act (&) 7#ne #8 these

    $, B "&( does not contain the word AanalysisA.

    o >oluntary &ct e%ists in "akistan.

    6enerally financial statements in "akistan does not contain any sort of analysis.

    1*. 9a"istan $ollows the $ollowing budgeting syste* at 8ederal

    level%() Bero!ased !udgeting (%) 9rogra* !udgeting(") Responsibility !udgeting (&) In"re4ent$ : &e"re4ent$%!&etin

    htt6+::www.r%i.#3.6:;#"!4ents:!&etr,Re8#r4.6&86 '1

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    ;he recurrent budget estimates are prepared on incremental basis.

    1. 9reparation o$ budget by a co*pany is co*pulsory under%() 7# Lw(%) Several laws (") Securities ;change

    Ordinance 3 (&) Co*panies Ordinance 01

    CO01 SO3 does not re2uire any budget preparation.

    1. Depreciation *ust be accounted $or%() Revenues (%)

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    transferred to(a) *ealization Account (b) artner #apital a##ounts (#) sundry debtors %##ounts

    (*) % prospe#tus for share #an be issued only by(a) A public company(b) % pri5ate #o"pany (#) &one of these.

    (0) reli"inary epense is(a) 4urrent asset (b) 4urrent iability (c) "ictitious asset

    (3) The 5aluation of #losing sto#k is at(a) 4ost pri#e (b) /arket pri#e(c) !ost or $aret price %ic%e'er is loer

    (6) The "aster budget in#ludes

    (a) as in#o"e state"ent (b) a balan#e sheet (#) a #ash budget (d)these all o t%ese(;) 4ost 5olu"e profit analysis is the "ethod used to esti"ate the i"pa#t on profit is

    of #hanges in(a) ?nit 5ariable #ost (b) unit sales pri#e (#) !ale 5olu"e (d) All o t%ese

    (12) +n a "anufa#turing #o"pany produ#t #ost in#lude(a) /aterial #ost only (b) /aterial and labour (#) abour #ost only (d) material

    labour and o'er%ead cost(11) % liability in the a"ount of s *22 is paid in #ash whi#h of the fallowing is true

    (a) %sset is in#reased and liability is de#reased (b) %sset is in#reased and liability is

    in#reased(b) Asset is decreased and liability is decreased(b) iability is de#reased andowner$s e>uity is in#reased

    (1) Whi#h one of the following a##ount would usually ha5e #redit balan#eE(a) !as%(b) %##ount payable (#) 7>uip"ent (d) !alaries epense

    (1') % #o"pany #olle#ted one year$s rent in ad5an#e on @#tober 1st ,1;;3 theentries s 122 was #redited to unearned re5enue a##ount the adusting entry at the

    De#e"ber '1,1;;3 year ended would in#lude(a) A debit to unearned re'enue or *s 600(b) % debit to unearned re5enue for

    s ;22 (#) % #redit to unearned re5enue for s '22 (d) % debit to rent earned for s;22

    (1) &et in#o"e plus operating epense is e>ual to

    (a) &et sale (b) 4ost of good a5ailable for sales (#) 4ost of good sold (d) 7rossproit

    (1*) When pur#hase "er#handise is returned under a perpetual in5entory syste" a#redit would be "ade to

    (a) +n5entory (b) Freight in (#) ur#hases (d) Purc%ase return(10) Whi#h of the fallowing a##ounts would not be in#luded in the #o"putation of the

    #ost of goods sold

    (a) ur#hase returns (b) "reig%t in (#) ur#hase dis#ount lost (d) ur#hasedis#ounts

    (13) Total "anufa#turing #ost for a period in#ludes all of the fallowing e#ept(a) aw "aterial used (b) Dire#t labour #ost

    (#) 4ost of good #o"pleted (d) "actory o'er%ead cost(16)

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    !SS 8999 PA1* 2nd

    (1) The table G % Gof the 4o"panies @rdinan#e 1;6

    (a) alan#e sheet for"at (b) rofit oss for"at (#) $odel : Articles oAssociation;(d) /odel G/e"orandu" of %sso#iationI

    () The state"ent of assets liabilities and owner$s #apital is #alled the(a) Finan#ial state"ent (b) rofit loss %=# (c) ,alance s%eet(d) state"ent of

    owners #apital(') When business a#ti5ity in#reases the fied #ost per unit

    (a) De#reased (b) *emain t%e same(#) +n#reases (d) &one of these) !tandard #ost are not used to

    (a) /easuring the perfor"an#e (b) repare udgets (c) Aid in planning(d) %5oidtra#king a#tual #osts

    (*) eturn on in5est"ent #ould be i"pro5ed by(a) Increasing assets turno'er(b) De#reasing return on sales (#) De#reasing

    #ontribution "argin (d) +n#reasing #ontrol epense(0) The for"ula a future 5alue of dollar is

    (a) P (8 4 r )n (b) (1 - r )n (#) (1 B n)r (d) (r -1 )n

    (3) The analysis of finan#ial state"ent helps identify a #o"pany$s strengths andweaknesses it indi#ate if #o"pany(a) is "anaging its in5entory effi#iently (b) Has suffi#ient plant assets

    (#) is #olle#ting a##ounts re#ei5able >ui#kly (d) All o t%e abo'e(6) 4o"pany$s earning power ratios are of a great interest to

    (a) referred shareholders (b) ong ter"s lenders (c) !ommon s%are %olders (d)

    all of these(;) Depre#iation 7pense is

    (a) a #ash inflow (b) a #ash outflow (#) +gnored when proper #ash flow

    state"ents (d) Added to t%e accumulated depreciation account(12) %n in#rease in in#o"e ta payable "ean that the #o"pany

    (a) Paid less t%an t%e income ta5 e5pense repotted(b) aid "ore than thein#o"e ta epense reported (#) aid the sa"e as the in#o"e ta epense reported

    (d) +s not paying any in#o"e taes(11) % 4ash sale of "er#handise should be re#orded in the

    (a) !ales ournal (b) Aeneral Cournal (c) !as% receipt uire"ent for a fir"$s "arketable se#urities

    (a) !afety (b) yield (#) /arketability(10) artnership for"s of organiation

    (a) A'oids t%e double ta5ation o earnings and di'idends ound in t%ecorporate orm o a organization(b) ?sually pro5ides li"ited liability to the

    partners (#) Has unli"ited life(13) % #orporate buy ba#k or the repur#hasing of share is

    (a) %n ea"ple of balan#e sheet restru#turing (b) %n e#ellent sour#e of profit when

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    the fir" sto#k is o5erpri#ed(c) A met%od o reducing t%e debt to euity ratio(d) %ll of the abo5e

    (16) % state"ent of #ash flows #an be prepaid using a ful T a##ount analysis Thisappro#h

    (a) /ser a detail accounts or eac% balance s%eet account (b) Di5idend the#ash T a##ount into #ash inflow and #ash outflows (#) 4lassifies ite" into operating,

    in5esting ,finan#ing (d) %ll the abo5e are true(1;) +f the beginning in5entory of the finished good is '222 units, planned sales are*222 units and planned produ#tions is 3222 units the in5entory of finished goods

    on the budgeted balan#e sheet would be

    (a) '222 (b) 8000(#) *222 (d) &one of these(2) +f working #apital in#reased during the period

    (a) !urrent assets must be increased (b) 4urrent liabilities "ust be de#reased(#) !our#e of working #apital "ust ha5e been greater than uses of working #apital

    (d) ?ser of working #apital "ust ha5e been greater than sour#es of working #apital

    Accounting & Auditing Paper-I (2002)

    *1+

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    (a) ia!iit,

    *b+ &sset

    *c+ one of these

    *C+ "reparation of annual report of a firm is goerned under:

    *a+ "artnership &ct 1)(

    *b+ nder partnership Deed(c) .one of these

    *+ Deferred ;a%ation amount be treated as:*a+ oot note

    (!) An item in the /aance heet on asset side*c+ one of these

    *)+ 8eturn of 9uity will be calculated as under:

    *a+ ,perating "rofit % 100/9uity(!) .et profit 100*Paid up "apita on,

    *c+ one of these

    *10+ $urrent maturity of long term loan is:(a) "urrent ia!iit,

    *b+ !ong ;erm !iability*c+ one of these

    Accounting & Auditing Paper-II (2002)

    ?rite only the correct answer in the &nswer 3ook. Do not reproduce the uestions.

    *1+ "rime cost is calculated as under:

    *a+

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    *c+ one of these

    *5+ 9%penditure incurred in procuring machinery is:*a+ &n admissible e%penditure for ta% purposes

    *b+ o admissible for ta% purposes

    *c+ one of these

    *2+ Increase in income constitutes:(a) Infows

    *b+ ,utflows*c+ one of these

    *C+ < B & stands for:

    *a+

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    8eturn on 9uity is calculated as et "rofit/'hareholdersE 9uity % 100

    F*=ednesday, Ganuary @1, 7@7

    Accounting & Auditing Paper-I (2003)

    *1+ &cid ;est 8atio is calculated as under:

    *a+ $urrent &ssets/$urrent !iabilities*b+ i%ed &ssets/$urrent !iabilities

    (c) i5uid Assets*"urrent ia!iities*d+ one of these

    *(+ Deferred cost is a:

    *a+ !iability(!)Asset

    *c+ one of these

    *+ ?ork 'heet is:*a+ 3alance 'heet

    *b+ und lows 'tatement(c) A com!ination of Profit and oss Account and /aance heet items

    *d+ one of these

    *+ 3anks4 for the preparation of financial statements4 are goerned under:

    (a) /anking "ompanies #rdinance7 1$82*b+ 'tate 3ank of "akistan &ct

    *c+ one of these

    *5+ 8eturn on inestment is computed:

    *a+ Inestment/"rofit % 100(!) Profit 100*In+estment

    *c+ one of these

    Accounting & Auditing Paper-II (2003)

    ?rite only the correct answer in the &nswer 3ook. Do not reproduce the uestions.

    *1+ 8ent of the premises constitutes ariable e%penses for cost allocation:

    (a) True*b+ alse

    *(+ 'ugar used in a sugarcane company is:

    (a) 9aria!e cost*b+ i%ed cost

    http://www.cssforum.com.pk/392589-post5.htmlhttp://www.cssforum.com.pk/392589-post5.htmlhttp://www.cssforum.com.pk/392589-post5.html
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    *c+ one of these

    *+ &n auditor is liable under the following circumstances:

    *a+ ;hird "arty !iabilities(!) :raud perpetrated in high, sophisticated circumstances

    *c+ one of these

    *+ &gricultural income is ta%able under the Income ;a% !aws of "akistan:

    *a+ ;rue(!) :ase

    *5+ "rincipal and markup payment within one year constitutes long term liability for

    disclosure in the balance sheet of a company.*a+ ;rue

    (!) :ase

    *2+ ,rdinarily one can hae the following partners in a partnership in "akistanunder the "artnership &ct 1)(.

    *a+ 10(!) 20

    *c+ 0*d+ one of these

    *C+ ?orking $apital finance can be termed as F8unning inanceG in a limited

    company.(a) True

    *b+ alse

    *+ Income from $apital gains arising out of trading on a stock strange in "akistan

    is ta%able these days:(a) True

    *b+ alse

    *)+ $onersion $ost is calculated as under:

    *a+ !abour "lus

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    ,riginally "osted by omerkhan(6) Deferred Taation a"ount be treated as:

    (a) Foot note(b) %n ite" in the alan#e !heet on asset side

    (#) &one of these

    &one of these "ay be the answer be#ause deferred taation is what you ha5ere#ognied in your finan#ial state"ent but not paid to ta authorities, so it should

    be a liability. ut + a" not sure.

    I differ with reason you mentioned because as far as I studied it, Deferred Taxation

    arises due to difference of depreciation method used by the companies,as in Pakistan Tax

    authorities recommend companies to use Diminishing balance method and if company is

    using straight line method then there will be some difference incurred in amount of tax to

    be paid in starting the difference is Credit but as time passes the difference will start

    getting Debit or its become receivable..

    ! in given "uestion it is not evident that at what point of time they are asking this..butin my view in long run Deferred Tax will be given a Debit #alance means put on asset

    side...but in starting this shows Credit balance as well it can be liability or asset...so

    keeping in view these things I too go with part C

    Huote:

    *)+ 8eturn of 9uity will be calculated as under:

    *a+ ,perating "rofit % 100/9uity*b+ et profit % 100/"aid up $apital only

    (c) .one of these

    8eturn on 9uity is calculated as et "rofit/'hareholdersE 9uity % 100

    $up you are right...%

    Huote:

    ,riginally "osted by aara;hussain

    (1) ent of the pre"ises #onstitutes 5ariable epenses for #ost allo#ation:

    (a) rue

    (b) False

    This is Falsebecause whether you use premises or not, you will have to pay &ent..__________________

    8egards4 8i#

    FSaturday, Ganuary @H, 7@7

    http://www.cssforum.com.pk/393434-post7.htmlhttp://www.cssforum.com.pk/393434-post7.htmlhttp://www.cssforum.com.pk/393434-post7.html
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    Huote:

    ,riginally "osted by ou to

  • 7/25/2019 Solved Mcqs

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    Monday, March , 7@6

    dawoodahmad

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    The :oowing =ser a,s Thank >ou to dawoodahmad :or This =sefu Post

    3eauty*riday4

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    *c+ & combination of "rofit and !oss &ccount and 3alance 'heet items*d+ one of theseOuoteP