Download I.COM Part 2 Principles of Accounting Guess Paper 2016

Guess-papers-logoGuess Paper of Principles of Accounting I Com Part 2 Important Short Questions

If a share of Rs. 10 is issued at 10% discount then the issue price will be
(A) 8
(B) 9
(C) 10
(D) 11

The liability of the share holders of a public limited company is
(A) Unlimited
(B) Limited
(C) Compulsory
(D) None of these

A person who purchases the shares of the company becomes its
(A) Shareholder
(B) Debenture holder
(C) Underwriter
(D) Promoter

The percentage of discount or premium is calculated on of share
(A) Market value
(B) Discount value
(C) Premium value
(D) Par value

He who buys shares of the company, becomes a
(A) Member of the company
(B) Agent of the company
(C) Employee of the company
(D) Director of the company

The face value of share is also known as
(A) Book value
(B) Par value
(C) Market value
(D) All of these

Discount on issue of shares is
(A) Profit
(B) Capital loss
(C) Revenue loss
(D) Expenditure

In Public Limited Company, liability of share holder is
(A) Limited
(B) Unlimited
(C) Both A & B
(D) None of these

The persons who take initiative for the formation of a company are known as
(A) Directors
(B) Promoters
(C) Share holders
(D) None of these

The persons contributing for partnership are called
(A) Share holders
(B) Partners
(C) Sole propfietors
(D) Promoters

The person who takes the initiative in the matter of formation of a company is known as the
(A) Promoter
(B) Share holder
(C) Director
(D) Registrar

The official signature of the company is called
(A) Shares
(B) Debentures
(C) Common seal
(D) Prospectus

The person who has entered into partnership individually is called
(A) Agent
(B) Partner
(C) Firm
(D) Share holder

Company is managed by
(A) Share holders
(B) Directors
(C) Employees
(D) None of these

Goodwill is valued when
(A) Profit is earned
(B) Loss is suffered
(C) New partner is admitted
(D) None of these

The process of writing off intangible assets such as goodwill is called
(A) Depreciation
(B) Fluctuation
(C) Depletion
(D) Amortization

Goodwill is a/an
(a) Tangible asset
(b) Intangible asset
(c) Fixed asset
(d) Current asset

Which is the intangible asset?
(A) Cash
(B) Car
(C) Goodwill
(D) Land

Goodwill is due to
(A) Repute of partners
(B) Management
(C) Location
(D) All of these

Consignee is a
(A) Principal
(B) Seller
(C) Buyer
(D) Agent

In consignment the risk attached to goods is with
(A) Seller
(B) Buyer
(C) Consignor
(D) Consignee

The consignee acts entirely on behalf of the
(A) Debtor
(B) Creditor
(C) Customer
(D) Principal

The relationship between consignor and consignee is that of
(A) Buyer and seller
(B) Debtor and creditor
(C) Wholesaler and retailer
(D) Principal and agent

Godown rent paid by consignee is debited to in the books of consignor
(A) Consignor
(B) Consignee
(C) Consignment
(D) Consignment A/c

Account sales is prepared by
(A) Consignor
(B) Consignee
(C) Consignment
(D) Principal

If consignment sold by consignee for Rs. 50,000 his 5% commission will be
(A) Rs.500
(B) Rs.50000
(C) Rs.5000
(D) Rs.2500

In the books of consignee. expenses paid by him is debited to
(A) Consignee A/c
(B) Consignor A/c
(C) Consignment A/c
(D) Cash A/c

Consignor is also called
(A) Principal
(B) An agent
(C) Debtor of the consignee
(D) Creditor of the consignee

The act of sending goods by consignor to the consignee is called
(A) Sales
(B) Purchases
(C) Stock
(D) Consignment

Consignee Account is of the nature of
(A) personal account
(B) real account
(C) nominal account
(D) none of these

Depreciation on machinery will be debited
(A) Machinery account
(B) Depreciation account
(C) Cash account
(D) None of these

Depreciation may be ascertained exactly in case of
(A) Lease hold property
(B) Machinery
(C) Patent right
(D) None of these

Depreciation of an asset should not exceed
(A) Original cost
(B) Depreciation value
(C) Market price
(D) Scrap value

Depreciation is a/an
(A) Expense
(B) Revehue
(C) Liablity
(D) Asset

If the value of fixed assets increased by the passage of time is called
(A) Depreciation
(B) Appreciation
(C) Fluctuation
(D) Depiction

If cost of assets is Rs.53000 scrap value Rs.8000 estimated life 5 years the amount of depreciation will be
(A) Rs.900
(B) Rs.9000
(C) Rs.1000
(D) Rs.10000

Under diminishing balance method amount of depreciation gradually
(A) Increases
(B) Decreases
(C) Remains constant
(D) None of these

The objective of charging depreciation on fixed assets is to
(A) Calculate true profit
(B) Provide funds for the replacement
(C) Reduce the tax liability
(D) All of these

According to diminishing balance method of charging depreciation it
(A) Increases every year
(B) Decreases every year
(C) Remains constant every year
(D) Both A and B

In straight line method of depreciation
(A) Depreciation is fixed
(B) Depreciation is decreasing
(C) Depreciation is constant
(D) Both A & C

Without charging depreciation profit will be
(A) Over-stated
(B) Under-stated
(C) Balanced
(D) Nominal

On the admission of a new partner depreciation fund is transferred to
(A) Revaluation account
(B) Partners capital account
(C) Cash account
(D) None of these

Under diminishing balance method depreciation is called on
(A) Original cost
(B) Written down value
(C) Scrap value
(D) Market value

Sinking fund investment is
(A) Asset
(B) Liability
(C) Income
(D) Expense

An ordinary partnership firm cannot have partners
(A) Less than 7
(B) Less than 2
(C) Less than 10
(D) Less than 20

Partnership is formed under the Act of
(A) 1984
(B) 1932
(C) 1912
(D) 1962

Maximum members in partnership are
(A) 20
(B) 50
(C) 60
(D) 2

The partnership is dissolved due to
(A) Insolvence of partners
(B) Completion of specific put-pose
(C) Expiry of specific period
(D) All of these

The partner who is not known to public in partnership is
(A) Nominal partner
(B) Minor partner
(C) Major partner
(D) None of these

The persons who have entered into a partnership are individually called
(A) Agents
(B) Partners
(C) A firm
(D) Vendors

Single Entry System is not suitable for
(A) Public Limited Company
(B) Sole Tradership
(C) Partnership
(D) None of these

Debentures can be issued
(A) Par value
(B) Discount
(C) Premium
(D) All of these

Debenture holders are the
(A) Debtors of the company
(B) Creditors of the company
(C) Owners of the company
(D) Directors of the company

Debenture is a receipt of
(A) Profit of Company
(B) Loan on company
(C) Bank Loan
(D) Govt. grant

The capital which is offered to public for subscription is called
(A) Authorized capital
(B) Issued capital
(C) Additional capital
(D) None of these

Capital fund is also called
(A) General fund
(B) Surplus fund
(C) Accumulated surplus
(D) None of these

The opening of capital is ascertained by preparing
(A) Cash account
(B) Opening statement of affairs
(C) Total debtors account
(D) Total creditors account

Authorized capital is also called
(A) Working capital
(B) Nominal capital
(C) Over subscribed capital
(D) Unregistered capital

In case of taking over of any asset by a partner is debited to
(A) Realization A/c
(B) Revaluation A/c
(C) Partner’s capital A/c
(D) None of these

Partner’s contribution to the business of the firm is called his
(A) Capital
(B) Profit
(C) Share
(D) Property

In single entry system of bookkeeping, opening and ending capital can be calculated by preparing of
(A) Income statement
(B) Statement of affairs
(C) Work sheet
(D) Cash statement

A person who lends his name to firm and invests no capital is called
(A) Active partner
(B) Nominal partner
(C) Minor Partner
(D) Senior partner

Closing capital can be calculated
(A) Closing statement of affairs
(B) Opening statement of affairs
(C) Cash book
(D) Trial balance

Capital fund of a non-trading concern is equal to
(A) Assets + Liabilities
(B) Assets — Liabilities
(C) Assets + Income
(D) Expenditures + Liabilities

In the absence of an agreement profit and losses are divided by patterns in ratio of
(A) Capital
(B) Time devoted by partners
(C) Equally
(D) Their drawingsility

Del-credere commission is given on
(A) Cash sale
(B) Credit sale
(C) Bulk sale
(D) Small sale

Outstanding rent is
(A) Asset
(B) Liability
(C) Income
(D) None of these

Both aspects of a transaction must be recorded in
(A) Signal entry system
(B) Barter system
(C) Double entry system
(D) None of these

In case of dissolution, the payment of unrecorded liability is debited to
(A) Realization account
(B) Liability account
(C) Revaluation account
(D) Cash account

The system in which accounting records are not kept strictly according to the double entry principles of book keeping
(A) Single entry system
(B) Modern system
(C) Double entry system
(D) Cash system

Accrued subscription will be recorded in Balance Sheet as
(A) An expense
(B) An income
(C) An asset
(D) Liability

In the Single Entry System, both the aspects, debit and credit of a transaction are not recorded so it is
(A) Complete and unscientific
(B) Incomplete and scientific
(C) Complete and scientific
(D) Incomplete and unscientific

Legacies are normally treated as
(A) Income
(B) Expense
(C) Asset
(D) Liability

In Pakistan, Public Limited Company is formed under
(A) 1980 Act
(B) 1984 Ordinance
(C) 1973 Act
(D) 1991 Act

The maximum number of members in case of public limited company can be
(A) Forty
(B) Fifty
(C) Sixty
(D) Unlimited

Single Entry System is useful for
(A) Sole Tradership
(B) Public Ltd. Company
(C) Private Ltd. Company
(D) For all these

Company formed by means of charter is called
(A) Public Ltd. Company
(B) Priate Ltd. Company
(C) Chartered Company
(D) Statutory Company

In case of public company. minimum number of members is
(A) 2
(B) 50
(C) 10
(D) 7

The basic object of non-trading concern is
(A) Public welfare
(B) Publicity
(C) Having votes
(D) All of these

Income and expenditure account is prepared
(A) At the end of year
(B) Monthly
(C) Weekly
(D) Only when needed

Income and expenditure account shows
(A) Surplus or deficit
(B) Net profit or net loss
(C) Capital account
(D) Cash in hand

If the credit side of income and expenditure account is greater than it’s debit side, it is termed as
(A) Surplus
(B) Deficit
(C) Asset
(D) Liability

Income and expenditure account is credited with all
(A) Expenses
(B) Earnings
(C) Assets
(D) Liabilities

In Single Entry System to calculate profit, total statements prepared are
(A) Four
(B) Two
(C) Three
(D) Five

How many methods are available to calculate the profit and loss under single entry system?
(a) 1
(b) 2
(c) 3
(d) 4

In single entry system statement of assets and liabilities is called
(A) Profit and loss account
(B) Statement of affairs
(C) Trial balance
(D) Income and expenses statement

Statement of assets and liabilities prepared under single element system
(A) Trial balance
(B) Statei-nent of affairs
(C) Balance sheet
(D) Income statement

In single entry system it is not possible to prepare
(A) Trial balance
(B) Trading account
(C) Profit and loss account
(D) Balance sheet

In single entry system, ledger contains
(a) Aalaries and insurance
(b) Assets and liabilities
(c) Debtors creditors and cash
(d) Wages and carriage

Statement of affairs is prepared under
(A) Single entry system
(B) Double entry system
(C) Cash base system
(D) None of these

The Single Entry System of book-keeping is generally followed by
(A) Small business concerns
(B) Large business concerns
(C) Non-trading concerns
(D) None of these

In single entry system, dual aspect concept is not followed, so it is
(A) Incomplete and scientific
(B) Complete and scientific
(C) Complete and unscientific
(D) Incomplete and unscientific

The system in which double entry system of bookkeeping is not strictly followed is called
(A) Cash system
(B) Double entry system
(C) Single entry system
(D) Credit system

Individuals or institutions with activities other than trade are known as
(A) Manufacturing concerns
(B) Non-trading concerns
(C) Trading concerns
(D) Banking concerns

A receipts and payments account is a summary of the
(A) Cash book
(B) Balance sheet
(C) Trial balance
(D) Profit and loss account

Receipt and payment account is
(A) Nominal account
(B) Real account
(C) Personal account
(D) An expense account

A partner who does not take an active part in the management of the firm is called
(A) Active partner
(B) Darment partner
(C) Nominal partner
(D) None of these

A partner who lends his name and reputation to the firm is called
(A) Active partner
(B) Darment partner
(C) Nominal partner
(D) None of these

In the account of a partner
(A) Will always have a credit balance
(B) Will always have a debit balance
(C) May have debit or credit balance
(D) None of these

In case of banking business the number of partners must not exceed
(A) Ten
(B) Twenty
(C) Thirty
(D) Fifty

X, Y and Z are partners in a firm. If B is to be admitted as a new partner then
(A) Old partnership has to be dissolved
(B) Old firm has to be dissolved
(C) Both old firm and partnership have to be dissolved
(D) Neither firm nor partnership needs to be dissolved

Cash Book is prepared to find out the figure of
(A) Opening capital
(B) Closing cash balance
(C) Net profit
(D) Financial position

The institutions which are established not for earning profit but for the welfare of the society are called
(A) Trading concerns
(B) Non-trading concerns
(C) Professional concerns
(D) None of these

Joint stock company is an artificial person created by
(A) Law
(B) Registrar
(C) Employees
(D) Federal Government

Registration of a firm is
(A) Necessary
(B) Optional
(C) It depends upon the will of registrar
(D) It depends upon the will of employees

Minimum number of members in Private Company are
(A) 3
(B) 1
(C) 2
(D) 20

Abnormal loss may occur due to
(A) Realization account
(B) Loss by accident
(C) Loss by theft
(D) All of these

Non-profit making organizations prepare
(A) Manufacturing account
(B) Trading account
(C) Income and expenditure account
(D) Profit and loss account

Net worth of an organization means excess of its assets over
(A) Liabilities
(C) Expenses
(B) Income
(D) None of these

Non-trading concerns prepare
(A) Profit and loss account
(B) Income and expenditure account
(C) Manufacturing account
(D) Trading account

Credit purchase can be ascertained through
(A) Total debtors accounts
(B) Total creditors account
(C) Statement of affairs
(D) Cash account

The Charter of the company containing the objectives is called
(A) Articles of association
(B) Prospectus
(C) Memorandum of association
(D) None of these

The gradually decrease in the value of fixed assets is called
(A) Appreciation
(B) Depletion
(C) Fluctuation
(D) None of these

Due to fluctuation in the market price. the value of any asset may
(A) Increase
(B) Decrease
(C) No change
(D) None of these

Credit sales can be calculated by preparing
(A) Creditors A/c
(B) Cash A/c
(C) Statement of affairs
(D) Debtors A/C

The amount received by non-profit concerns from its members on regular bases is
(A) Life Membership
(B) Admission fee
(C) Subseription
(D) Donation

A Company is formed by
(A) Owners (B) Promoters
(C) Directors (D) Govt.

Sale of old newspaper should be treated as
(A) Income
(B) Expense
(C) Liability
(D) Asset

Fixed asset is
(A) Cash
(B) Building
(C) Investment
(D) None of these

The parties involved in consignment are
(A) 5
(B) 2
(C) 4
(D) 3

The act of sending goods by owner to his agent for sale is called
(A) Sales
(B) Consignment
(C) Purchase
(D) None of these

Primarily non-profit making organizations involve in
(A) Buy goods
(B) Manufacturing goods
(C) Selling goods
(D) None of these

Legacy is generally treated as a/an
(A) Income
(B) Expense
(C) Asset
(D) Liability

I.com Part 2 Principles of Accounting Guess Paper 2016

Long Questions come from following below Chapters
Chapter 1 (Accounts from Incomplete Records) Must Come
Chapter 2 (The Accounts of Non-Profit Making Organizations) Must Come
Chapter 3 (Consignment Accounts) Must Come
Chapter 4 (Accounts of Joint Stock Company) Must Come
Chapter 5 (Depreciation, Provision And Reserves)
Chapter 6 (Partnership Accounts – Profit Distribution)
Chapters 7 (Admission of a Partner)
Chapter 8 (Retirement and Death)

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