Accounting and Auditing MCQs

1) Depreciation in spirit is similar to?
(A) Depletion
(B) Amortization
(C) Depression
(D) None of these

2) Funds Flow Statement and sources and application statement are
(A) Synonymous
(B) Antagonistic
(C) Bookkeeping
(D) None of these

3) Balance Sheet is always prepared
(A) For the year ended
(B) As on a specified date
(C) Mid of year
(D) None of these

4) Quick Ratio can be computed as under
(A) Quick . Assets/Quick Liabilities
(B) Quick . Liabilities/Current Assets
(C) Current Assets/ Current Liabilities
(D) None of these

5) Deferred Taxation is
(A) Part of owners equity
(B) Fixed asset
(C) Fixed liabilities
(D) None of these

6) Operating Profit is:
(A) Profit after deducting financial costs
(B) Profit after deducting normal operating expenses including depreciation
(C) Profit after deducting taxes
(D) None of these

7) A good Cost Accounting System is
(A) If it enables management to increase productivity and rationalize cost structure
(B) If it computes estimated cost only
(C) If it cannot be reconciled with financial accounts
(D) None of these

8) Stratified audit sample means
(A) Purposively selected items for audit
(B) Randomly selected items for audit
(C) Items carefully selected from each group
(D) None of these

9) Audit of a bank is generally conducted through
(A) Routine checking
(B) Couching
(C) Balance sheet audit
(D) None of these

10) An auditor is liable for his annual audit of accounts of
(A) Creditors
(B) Bankers
(C) Debtors
(D) Owners


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