Pakistan Army launched Operation Khyber-4 under Radd-ul-Fasaad (RuF) to “wipe out terrorists” in______________?

A. Rajgal valley
B. Tirah valley
C. North waziristan
D. Orakzai

Capital expenditure is an expenditure which

A. Benefits the current accounting period
B. Will benefit the next accounting period
C. Results in the acquisition of a permanent asset
D. Results in the acquisition of a current asset

Which of the following should not be treated as revenue expenditure?

A. Interest on loans and debentures
B. Annual fire insurance premiums on plant and equipment
C. Sales tax paid in connection with the purchase of office equipment
D. Small expenditures on long- lived assets, such as ` 20 for a paper weight.

Which of the following errors affects the agreement of a Trial Balance?

A. Mistake in balancing an account
B. Omitting to record a transaction entirely in the subsidiary books
C. Recording of a wrong entry in the subsidiary books
D. Posting an entry on the correct side but in the wrong account

The accountant of Leo Ltd. recorded a payment by cheque to a creditor for supply of materials as 1,340.56. The bank recorded the cheque at its correct amount of 3,140.56. The Company has not passed any rectification entries and the error is not detected through the bank reconciliation. The impact of this error is

A. The trial balance will not agree
B. The balance of creditors is understated
C. The purchases are understated
D. The favorable bank balance as per pass book is less than the bank balance as per cash book

Purchase journal is kept to record_____________?

A. All purchases of goods
B. All credit purchases of goods
C. All credit purchases
D. None of these

If goods worth 1,750 returned to a supplier is wrongly entered in sales return book as 1,570, then

A. Net profit will decrease by 3,140
B. Gross profit will increase by 3,320
C. Gross profit will decrease by 3,500
D. Gross profit will decrease by 3,320

While finalizing the current year‘s accounts, the company realized that an error was made in the calculation of closing stock of the previous year. In the previous year, closing stock was valued more by 50,000. As a result

A. Previous year‘s profit is overstated and current year‘s profit is also overstated.
B. Previous year‘s profit is understated and current year‘s profit is overstated.
C. Previous year‘s profit is overstated and current year‘s profit is understated.
D. There will be no impact on the profit of either the previous year or the current year.

Which of the following statements is correct about Trial Balance?

A. The trial balance is prepared after preparing the profit and loss account
B. The trial balance shows only balances of assets and liabilities
C. The trial balance shows only nominal account balances
D. The trial balance has no statutory importance from the point of view of law

The adjustment to be made for income received in advance is:

A. Add income received in advance to respective income and show it as a liability
B. Deduct income received in advance from respective income and show it as a liability
C. Add income received in advance to respective income and show it as asset
D. Deduct income received in advance from respective income and show it as an asset in the balance sheet