(21) Income Tax is levied on:
a. Agricultural Income
b. Presumptive Income
c. None of above
(22) If a firm has paid super-tax, its partners may follow any one of the following behaviors:
a. No need to pay income tax, even if the income exceeds the taxable limit.
b. Pay income tax, even if the income does not exceed the taxable income.
c. Pay income tax as required under the law.
(23) A resident multinational company need not:
a. Pay income tax, if it s caused under Double Taxation agreement.
b. If it is not enjoying tax exemption under the Income Tax Ordinance, 1979 (Second Schedule).
c. None of above
(24) Income Tax rates are the same for:
a. Limited Companies
b. Banking Companies
c. None of above
(25) Super Tax on companies is:
a. In vogue in Pakistan
b. Not in vogue in Pakistan
c. None of above
(26) Current Ratio is calculated as:
a. Fixed Assets/Current Liabilities
b. Current Liabilities/Current Assets
c. Current Assets/Current Liabilities
(27) Short-term loan can be described as:
a. If the period is three years
b. If the period is less than one year
c. If the period is over one year
(28) A partnership, in today’s Pakistan, under the current law can have the following number of partners:
a. 50
b. 20
c. 100
(29) Combination can be best described as:
a. Restructuring of Capital of a Company
b. Reduction of Capital of a Company
c. Amalgamation of two different types of businesses
(30) Sources of funds can be increased by:
a. Describing selling prices
b. Increasing expenditure
c. None of above
(31) Books of original entry are called:
(a) Ledger
(b) Work sheets
(c) Journal
(d) None of these
(32) For preparing balance sheets prepaid expenses are shown as part of:
(a) Liability
(b) Equities
(c) Assets
(d) None of these
(33) Unpaid and unrecorded expenses are called:
(a) Prepaid expenses
(b) Accrued expenses
(c) Additional expenses
(d) None of these
(34) Amount, cash, or other assets removed from business by owner is:
(a) Capital
(b) Drawings
(c) Assets
(d) None of these
(35) Under the diminishing balance method, depreciation amount is:
(a) Payment
(b) Receipt
(c) Expenditure
(d) None of these
(36) Users of accounting information include:
(a) The tax authorities
(b) Investors
(c) Creditors
(d) All of these
(37) The business form(s) in which the owner(s) is (are) personally liable is (are) the:
(a) Partnership only
(b) Proprietorship
(c) Corporation only
(d) Partnership and proprietorship
(e) None of these
(38) The investment of personal assets by the owner:
(a) Increases total assets and increases owner’s equity
(b) Increases total assets only
(c) Has no effect on assets but increases owner’s equity
(d) Increase assets and liabilities
(e) None of these
(39) All of the following are forms of organizations except:
(a) Proprietorship
(b) Corporation
(c) Retailer
(d) Partnership
(e) None of these
(40) Economic resources of a business that are expected to be of benefit in the future are referred to as:
(a) Liabilities
(b) Owner’s equity
(c) Withdrawals
(d) Assets
(e) None of these