Financial Accounting IFRS MCQs 2026

Partnership deed in accounting refers to

1. A written agreement governing partner rights ✓
2. B charge on amounts withdrawn by partners ✓
3. C partner leaves the partnership ✓
4. D adjustment of asset values when partner changes ✓

Profit sharing ratio in accounting refers to

1. A new partner joins existing firm ✓
2. B intangible value of reputation and earning capacity ✓
3. C agreed basis to divide profits and losses ✓
4. D minimum profit assured to a specific partner ✓

Interest on capital in accounting refers to

1. A return allowed on partner capital balances ✓
2. B partner leaves the partnership ✓
3. C adjustment of asset values when partner changes ✓
4. D fixed remuneration before profit share ✓

Interest on drawings in accounting refers to

1. A charge on amounts withdrawn by partners ✓
2. B intangible value of reputation and earning capacity ✓
3. C minimum profit assured to a specific partner ✓
4. D written agreement governing partner rights ✓

Admission of partner in accounting refers to

1. A adjustment of asset values when partner changes ✓
2. B fixed remuneration before profit share ✓
3. C agreed basis to divide profits and losses ✓
4. D new partner joins existing firm ✓

Retirement of partner in accounting refers to

1. A partner leaves the partnership ✓
2. B minimum profit assured to a specific partner ✓
3. C written agreement governing partner rights ✓
4. D return allowed on partner capital balances ✓

Goodwill in accounting refers to

1. A intangible value of reputation and earning capacity ✓
2. B fixed remuneration before profit share ✓
3. C agreed basis to divide profits and losses ✓
4. D charge on amounts withdrawn by partners ✓

Revaluation on admission in accounting refers to

1. A written agreement governing partner rights ✓
2. B adjustment of asset values when partner changes ✓
3. C return allowed on partner capital balances ✓
4. D new partner joins existing firm ✓

Guaranteed profit in accounting refers to

1. A minimum profit assured to a specific partner ✓
2. B agreed basis to divide profits and losses ✓
3. C charge on amounts withdrawn by partners ✓
4. D partner leaves the partnership ✓

Salary to partner in accounting refers to

1. A return allowed on partner capital balances ✓
2. B new partner joins existing firm ✓
3. C fixed remuneration before profit share ✓
4. D intangible value of reputation and earning capacity ✓

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

1. A ignore the transaction until next fiscal year ✓
2. B debit and credit both affected so the equation stays balanced ✓
3. C record only one side of the entry ✓
4. D post directly to retained earnings without analysis ✓