Financial Accounting IFRS MCQs 2026

Partnership scenario 1: a Pakistani law firm partnership must correctly handle profit sharing ratio

1. Aignore the transaction until next fiscal year✓
2. Bdebit and credit both affected so the equation stays balanced✓
3. Crecord only one side of the entry✓
4. Dpost directly to retained earnings without analysis✓

Salary to partner in accounting refers to

1. Areturn allowed on partner capital balances✓
2. Bnew partner joins existing firm✓
3. Cfixed remuneration before profit share✓
4. Dintangible value of reputation and earning capacity✓

Guaranteed profit in accounting refers to

1. Aminimum profit assured to a specific partner✓
2. Bagreed basis to divide profits and losses✓
3. Ccharge on amounts withdrawn by partners✓
4. Dpartner leaves the partnership✓

Revaluation on admission in accounting refers to

1. Awritten agreement governing partner rights✓
2. Badjustment of asset values when partner changes✓
3. Creturn allowed on partner capital balances✓
4. Dnew partner joins existing firm✓

Goodwill in accounting refers to

1. Aintangible value of reputation and earning capacity✓
2. Bfixed remuneration before profit share✓
3. Cagreed basis to divide profits and losses✓
4. Dcharge on amounts withdrawn by partners✓

Profit sharing ratio in accounting refers to

1. Anew partner joins existing firm✓
2. Bintangible value of reputation and earning capacity✓
3. Cagreed basis to divide profits and losses✓
4. Dminimum profit assured to a specific partner✓

Partnership deed in accounting refers to

1. Awritten agreement governing partner rights✓
2. Bcharge on amounts withdrawn by partners✓
3. Cpartner leaves the partnership✓
4. Dadjustment of asset values when partner changes✓

Retirement of partner in accounting refers to

1. Apartner leaves the partnership✓
2. Bminimum profit assured to a specific partner✓
3. Cwritten agreement governing partner rights✓
4. Dreturn allowed on partner capital balances✓

Admission of partner in accounting refers to

1. Aadjustment of asset values when partner changes✓
2. Bfixed remuneration before profit share✓
3. Cagreed basis to divide profits and losses✓
4. Dnew partner joins existing firm✓

Interest on drawings in accounting refers to

1. Acharge on amounts withdrawn by partners✓
2. Bintangible value of reputation and earning capacity✓
3. Cminimum profit assured to a specific partner✓
4. Dwritten agreement governing partner rights✓

Interest on capital in accounting refers to

1. Areturn allowed on partner capital balances✓
2. Bpartner leaves the partnership✓
3. Cadjustment of asset values when partner changes✓
4. Dfixed remuneration before profit share✓