Practise 20 real Federal Board questions on Adjustments in Final Accounts from 2023 to 2026. See the answer and explanation as soon as you answer.
Adjustments in Final Accounts is one of the 10 main chapters in our Federal Board I.Com Accounting question bank (11th and 12th class), and about 5% of its real questions come from it. Tayyari Karo has 20 real questions on this chapter from 2023 to 2026; 10 are multiple choice and marked instantly, and the rest are short and long questions with a model answer. By difficulty: 11 easy, 9 medium.
Work through the questions below, then open the explanation for each one. Redo the ones you missed a few days later.
These are real past-paper questions. Think of your answer first, then open the explanation.
All those expenses which have not become due but paid in advance are called:
Answer: C. Prepaid expenses
Prepaid expenses are payments made in advance for benefits to be received in a future period.
If any income omitted to be recorded it will:
Answer: B. Understate the profit
Omitting income from the accounts means it is not credited to profit and loss, so net profit is understated.
A prepaid expense is:
Answer: A. An asset
A prepaid expense represents a future benefit already paid for, so it is recorded as an asset until the benefit is consumed.
Which of the following is a possible loss, the amount of which cannot be determined exactly?
Answer: B. Provision
A provision is created for a possible/anticipated loss or liability whose exact amount is uncertain, e.g. provision for doubtful debts.
Portion of profit which is not paid to proprietor, but is kept aside for meeting some losses, is called:
Answer: A. Reserve
A reserve is an appropriation of profit retained in the business to strengthen its financial position or meet future contingencies/losses.
All those expenses which have become due but not paid are called:
Answer: C. Outstanding expenses
Outstanding (accrued) expenses are expenses incurred/due in the current period but not yet paid.
What are outstanding expenses?
Outstanding expenses are expenses that have been incurred (benefit already received) during the accounting period but remain unpaid at the period end; they are shown as a current liability in the balance sheet and added to the relevant expense in the profit and loss account.
What is meant by the term provision?
A provision is an amount charged against profit and set aside to meet a known liability or an anticipated loss, the exact amount of which cannot be determined with certainty at the time of preparing accounts — e.g. provision for doubtful debts, provision for depreciation, or provision for taxation.
| Session | Questions |
|---|---|
| 2026 Annual | 4 |
| 2025 1st Annual | 6 |
| 2025 2nd Annual | 4 |
| 2024 Annual | 2 |
| 2023 Annual | 4 |
20 real Federal Board (FBISE) Accounting questions on Adjustments in Final Accounts from 2023 to 2026, for 11th and 12th class. Each one shows the session it came from.
No. We could not find an official FBISE marking scheme for these papers, so the answers and explanations are written by Tayyari Karo for practice. Check anything important with your teacher or textbook.
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