Accounting refers to the systematic process of recording, summarizing, analyzing, and reporting financial transactions and information of an individual, business, or organization. It involves the measurement, processing, and communication of financial data to facilitate the decision-making process, financial management, and compliance with relevant laws and regulations.
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| What are Company Accounts |
Which type of company is required to prepare financial
statements in accordance with the International Financial Reporting Standards
(IFRS)?
a) Private limited company
b) Public limited company
c) Both private and public limited companies
d) None of the above
Which financial statement is required to be prepared by both
private and public limited companies?
a) Balance sheet
b) Income statement
c) Statement of cash flows
d) All of the above
What is the minimum number of directors required for a
private limited company to appoint an auditor?
a) One
b) Two
c) Three
d) Four
True or False: A private limited company is not required to
hold an annual general meeting (AGM) for shareholders.
a) True
b) False
Which type of company is required to publish its financial
statements in a widely circulated newspaper?
a) Private limited company
b) Public limited company
c) Both private and public limited companies
d) None of the above
Which financial statement provides information about the
company's profit or loss for a specific period?
a) Balance sheet
b) Income statement
c) Statement of cash flows
d) Statement of changes in equity
What is the maximum number of partners allowed in a private
limited company?
a) 50
b) 100
c) 200
d) Unlimited
Which type of company is required to file its audited
financial statements with the Securities and Exchange Commission of Pakistan
(SECP)?
a) Private limited company
b) Public limited company
c) Both private and public limited companies
d) None of the above
What is the minimum number of shareholders required for a
private limited company?
a) One
b) Two
c) Three
d) Four
Which financial statement best represents the company's
financial standing at a certain time?
a) Balance sheet
b) Income statement
c) Statement of cash flows
d) Statement of changes in equity
Which accounting standard is followed by companies under the
Company Act 2017 in Pakistan?
a) International Financial Reporting Standards (IFRS)
b) Generally Accepted Accounting Principles (GAAP)
c) Pakistan Accounting Standards (PAS)
d) Indian Accounting Standards (Ind AS)
Which regulatory body oversees the implementation of
accounting standards for companies in Pakistan?
a) Securities and Exchange Commission of Pakistan (SECP)
b) State Bank of Pakistan (SBP)
c) Federal Board of Revenue (FBR)
d) The Institute of Chartered Accountants of Pakistan (ICAP)
Which financial statements are required to be prepared by
companies under the Company Act 2017 in Pakistan?
a) Balance Sheet, Income Statement, Cash Flow Statement
b) Balance Sheet, Profit and Loss Statement, Statement of
Retained Earnings
c) Balance Sheet, Profit and Loss Statement, Cash Flow
Statement
d) Income Statement, Statement of Financial Position,
Statement of Changes in Equity
How often should companies under the Company Act 2017 in
Pakistan prepare financial statements?
a) Quarterly
b) Annually
c) Biannually
d) Monthly
Which of the following is NOT a fundamental accounting
principle under the Company Act 2017 in Pakistan?
a) Going Concern
b) Materiality
c) Consistency
d) Transparency
What is the general rule for the recognition of revenue by
companies under the Company Act 2017 in Pakistan?
a) Revenue is recognized when cash is received.
b) Revenue is recognized when goods are delivered.
c) When services are rendered, revenue is recognized.
d) Revenue is recognized when an invoice is issued.
Which of the following is an example of a current liability
under the Company Act 2017 in Pakistan?
a) Long-term loan payable
b) Accounts receivable
c) Accrued expenses
d) Property, plant, and equipment
What is the purpose of an audit for companies under the
Company Act 2017 in Pakistan?
a) To ensure compliance with tax regulations
b) To provide assurance on the reliability of financial
statements
c) To calculate the company's profitability
d) To identify potential investment opportunities
Which financial year-end date is commonly followed by
companies under the Company Act 2017 in Pakistan?
a) December 31
b) June 30
c) March 31
d) September 30
Which of the following statements is true about the
accounting system for companies under the Company Act 2017 in Pakistan?
a) Companies have the freedom to choose their own accounting
policies.
b) Companies must adhere to accounting standards prescribed
by the SECP.
c) Companies are only required to maintain basic accounting
records.
d) Companies are exempt from preparing financial statements if they have fewer than 50 employees.