soved these mcqs senior auditor paper

1.The Cost Of Machine on 1 March 2008 is RS 22000 & Its salvage Value is 2000 after the end of 4 year of its useful life. The Accumulated Depreciation of Machine by 31st Dec, 2012 is? (A) 18000 (B)19166 (C)18750 d)None of these

2. A Company receives an electricity bill on 15thmarch for the previous month and submits the bill before the due date The Electricity expense will be charged in

(A) March(B) April(C) February(D) None Of these

3. A Company Paid an Insurance Bill of 18000 for 3 years on 30th April, with the Insurance period beginning from the same day .The Insurance Expense for the year ended 31st December will be?(A) 4000 (B) 1200 (C)4500 (D) None of these

4. Which of the following does Not constitute an Increase in Net Income (A) Capitalizing a revenge Expenditure (B)Failing to recognize liability as an Expense

(C) Not recognizing a current Liability as an expense (D) None of these

5. Which Of the following does not Depreciate (A) Advances (B) Land( C) Both A & B(D) None Of these

6) Income & Expense A/c is made on(A) Cash Basis (B) Accrual Basis (C) Substance Over Form (D) None Of these

7. An Account balance that is linked to ANOTHER account & is present on the Opposite side of the Linked account and the Balance of that Account is concluded after subtracting from the Linked A/c(A) Accrued Expense (B) Contra A/C(C) Unearned Revenue (D) None Of these

8. Value of an asset at the end of its useful life( After Subtracting disposal Cost) is called(A) Residual Value (B) Net Book Value (C)Depreciation Value (D) None of these

9. The Value if the Asset after Subtracting Accumulated depreciation is called a) Depreciated value B)Net Book Value C) Historical Value D) None Of these

10.Accumulated depreciation Account appear on the financial statements (A) Treated as a Liability (B) on the Assets Side (C) under the fixed Asset Section (D) None of these

11. Gross Profit ratio is 20% & Budgeted forecast for sales for the quarter ending 31st December 2014 was 125000. The Budgeted value of closing stock on 30 September 2014 was 32500 and the Budgeted value for the Opening Quarter for 2015 is 41500.Budgeted value of Purchases will be (A) 91500 (B)109000 (C) 91000 (D) None of these

12. Retained earning balance Can be found in (A) cash flow Statement (B)Income & Expense a/c (C) Income Column of worksheet ( D) None of these

13. All Cash receipts and Cash Payments and all Inflows from Loan Proceeds and Repayments Of loan are Called(A) Cash Flow Statement (B) Capital Budget (C) Cash budget ( D) None of these

14. Accrued Revenue Constitutes(A) A receipt in the Upcoming Period for Services (B) A Payment in the upcoming Period for services (C) Receipt in This Period and services in the next period (D) None of these

15. Partnership does not constitutes (1) Agency Relationship (2) Limited Liability (3) Voluntary Affiliation D) None of these

16) Before Passing the adjusting entry the value of supplies store was RS 3900 . On Verification the value of the supply store was found to be Rs 500. The adjusting entry would be (A) DR Store Supplies expense rs 3900 CR Store Supplies 3900 (B) DR Store Supplies expense rs 3400 CR Store Supplies rs 3400 (C) Dr Store Supplies 3400 CR Store Supplies Expense 3400 ( D) None of these