Accounting MCQs Part 2

11. Auditing is what?

A. Reporting the financial information

B. Preparation financial statements

C. Examination of financial statements

D. Maintaining the ledger records

12. Deferred Taxation is.?

A. Fixed asset
B. Part of Owners Equity

C. Fixed liabilities
D. None of above

13. Liability is arisen from which of the following events.?

A. Present event

B. Future event

C. Past event

D. None of them

14. Cash budget excludes the following.?

A. Cash items
B. Non-Cash items

C. Purchase on Credit items

D. None of above

15. Partners in Pakistan can today be fixed at the following numbers.?

A. 15

B. 20
C. 50
D. None of above

16. Keeping the log of financial information in books of original entries is called.?

A. Summarizing

B. Grouping

C. Recording

D. Processing

17. Liabilities are which of the following.?

A. Resources

B. Obligations

C. Future benefits

D. Expenses

18. Depreciation in spirit is similar to.?

A. Amortization

B. Depletion
C. Depression

D. None of above

19. Identify the nominal account.?

A. Machinery account

B. Building account

C. Creditors account

D. Rent expenses account

20. Sales budget must be prepared.?

A. Based on Sales forecasts of market

B. Independently
C. Depending on production capacity
D. None of above

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