Commerce MCQ Questions and Answers

Which of the following is not a part of the usual contents of the current file and audit working papers ?

Consider the following statements- Audit working papers are maintained because 1. they act as a guide to subsequent audit. 2. they verify the arithmetical accuracy of the books of accounts. 3. they provide evidence of the work performed by the auditor. Which of the statements given above are correct ?

Match List-I with List-II and select the correct answer using the code given below the Lists- List-I (Technique) (a) Rotation of Duties (b) Random Sampling (c) Trend Analysis (d) Cash verification List-II (Auditing Procedure) (1) Internal control (2) Physical examination (3) Selective verification (4) Overall assessment Codes : (a) (b) (c) (d)

Consider the following stages an auditor has to undergo before commencing an audit- 1. Ascertaining the scope of audit work. 2. Gaining knowledge about business of the client. 3. Going through the agreement with the client. 4. Instructions to and information from the client. What is the correct sequence of the above stages ?

Which one of the following statements is correct ?

The following steps should be adopted by an auditor for verification of land- 1. To examine that the land has been shown in the balance sheet at its original cost. 2. To ensure that the cost of land also includes the expenses like broker's commission, legal expenses, improvement expenses etc. 3. To get a certificate from solicitor of the client regarding validity of the title deeds. 4. To examine that the land is not subject to any charge or mortgage. What is the correct sequence of the above steps to be followed by an auditor during the course of auditing ?

What does payout ratio mean ?

Consider the following statements- 1. Premium on issue of shares is transferred to General Reserve Account. 2. For declaration of bonus shares out of General Reserve, a resolution in the shareholders' meeting is necessary. Which of the statements given above is/are correct ?

How is ‘Calls in arrear’ shown in the balance sheet on the liability side ?

Match List-I with List-II and select the correct answer using the code given below the Lists- List-I (Activity) (a) Admission of a partner (b) Partnership dissolution (c) Rectification of errors (d) Transfer of realization profit List-II (Account) (1) Capital Accounts (2) Suspense Account (3) Revaluation Account (4) Realization Account Codes : (a) (b) (c) (d)