ENGLISH

1. ________ the bad weather, the outdoor party was rescheduled.

a) Because of b) In order to
c) Despite d) None of these
2. ___________________ losing the first match, our team has won the world cup.
a) Because of b) In order to
c) Despite d) None of these
3. You are wearing an army's uniform, but the ________ is missing.
a) Epic b) Epoch
c) Epithet d) None of these
4. University professors visit the website www.sheir.org and _________ the data.
a) Inform b) Appraise
c) Apprise d) None of these
5. I am afraid ________ cats.
a) To b) From
c) Of d) None of these
6. We did not have ________ question for the lecturer.
a) None b) Any
c) Some d) None of these
7. Although its publicity has been ______________________, the film itself is intelligent, well-acted,
handsomely produced and altogether ______________________.
a) Tasteless … respectable b) Extensive … moderate
c) Sophisticated … moderate d) None of these
8. Why are you still sleeping? you 'll be late. _ of bed now.
a) Get up b) Get out
c) Out d) None of these
9. If I had money, I ________ it now.
a) will purchase b) Would purchase
c) Would have purchased d) None of these
10. The man ________ you met is an anchorperson.
a) Who b) Whose
c) Whom d) None of these

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11. The woman ________ is standing by the table works in electronic media.
a) Who b) Whose
c) Whom d) None of these
12. If humans were totally deprived of sleep, they ______ hallucinations, anxiety, coma, and eventually,
death.
a) Would experience b) Experience
c) Would have experienced d) None of these
13. He is looking for accommodation ________ in flat or shared house.
a) Both b) Either
c) Until d) None of these
14. You can go neither by train ________ by bus.
a) No b) Nor
c) Or d) None of these
15. Before designing a public park, the architect must ________ the public.
a) Consider b) Considers
c) Recognize d) None of these
16. When she was younger, she ________ five kilometers a day.
a) Walked b) Had walked
c) Has been walking d) None of these
17. To check for acidity, one had better _______________litmus paper.
a) Use b) Using
c) To use d) None of these
18. The house is large ________ is quite old-fashioned.
a) And b) Or
c) But d) None of these
19. We need to find ________ method to solve this problem.
a) Other b) The other
c) Another d) None of these
20. The students in our school are ________ in other schools.
a) Smarter b) Smarter than
c) Smarter than those d) None of these.

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 PROFESSIONAL

21. _______________ is systematic examination of the books & records of business.

a) Auditing b) Vouching

c) Verification d) Checking

22. Management audit otherwise called as:

a) Final audit b) Efficiency Audit

c) Cost Audit d) Cash Audit

23. Auditor is:

a) A member of the company b) An agent of the company

c) An agent of central government d) An assistant to accountant

24. Prospectus is a document,

a) Containing rules & regulation of the company.

b) Containing details about manufacturing process of the company.

c) Containing details about the share capital of the company.

d) Containing information of the sales.

25. A sale of Rs. 50000 to Mr. A was entered as a sale of Mr. B, This is an example of

a) Error of omission b) Error of commission

c) Compensation error d) Error of principle

26. Preliminary expenses are best example of:

a) Fictitious Assets b) Intangible Assets

c) Warning Assets d) Functioning Assets

27. For which of the following organization audit is optional.

a) Organization b) Joint stock Companies

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c) Proprietorship Concern d) None of these

28. Capital reserves are created out of profit of,

a) A revenue nature b) A capital nature

c) A secret reserve d) Contingency reserve

29. The main object of investigation is,

a) To discover errors & frauds b) To prevent errors & frauds

c) To verify Statements d) All of these

30. The cost of asset after the expiry of its useful life is called,

a) Written down value b) Residual value

c) Expired value d) None of these

31. Excess of debit over credit is called,

a) Opening Balance b) Closing Balance

c) Debit Balance d) Credit Balance

32. Manufacturing overhead cost would include,

a) A marketing Cost related to the selling of the products.

b) The salary of production line supervisor.

c) The chief executive officer salary.

d) Research & development cost for new products.

33. The distinction between revenue account & capital account is necessary for the production of,

a) Final accounts b) Receipts & Payment account

c) Cash flow statements d) Financial Expenses

34. Depreciation of machinery will be shown in, profit & loss account under the heading of,

a) Selling Expense b) Administrative Expense

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c) Marketing Expense d) Financial Expense

35. Asset which have no physical existence and cannot be seen & touched that are called,

a) Fictitious Assets b) Tangible Assets

c) Current Assets d) Intangible Assets

36. Overhead cost is total of,

a) All indirect Cost b) All direct costs

c) Indirect & direct cost. d) Value of stock

37. Cost of sales plus profit is,

a) Selling Price b) Value of finished product

c) Value of goods produced d) Value of stocks

38. Depreciation of plant & machinery is a part of,

a) Factory Overhead b) Selling overhead

c) Distribution overhead d) Administration overhead

39. The ratio which reflect marginal efficiency in handling the asset is,

a) Turnover ratio b) Profitability ratio

c) Short-term solvency ratio d) Long term solvency ratio

40. Returns on inequity is also called _______________.

a) Returns on investment b) Gross profit ratio

c) Returns on shareholder funds d) Returns on net worth

41. _________________ involves the sale of used securities from one investor to another.

a) Primary Market b) Secondary Market

c) Territory Market d) None of these

42. The process of planning & managing a firm’s long term investment is called,

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a) Financial Process b) Capital Structure

c) Capital Budgeting d) Managing Process

43. An equal increase in both current asset and current liabilities would,

a) Decrease Current ratio b) Increase Current ratio

c) No effect on current ratio d) None of these

44. _______________ are short term, temporary investment that can be rapidly converted into cash.

a) Marketable Securities b) Cash equalities

c) Treasury Bills d) All of these

45. When bank statement showing debit balance, it means:

a) Overdraft balance as per cash book b) Favorable balance as per cash book

c) Unfavorable balance as per cash book d) None of these

46. An accounting system in which accounting entries are made on the basis of payments looking due
for payment or receipt is known as:

a) Cash system of Accounting. b) Current Accounting period.

c) Accrual system of Accounting d) None of these

47. Cost of control is not concerned with,

a) Examine of Control b) Effectiveness of Control

c) Continuity of Control d) Designing of Control

48. The comparison of net profit with the sale of the same year is,

a) Vertical Comparison b) Horizontal Comparison

c) Three-Dimensional Comparison d) None of these

49. Missing

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50. When shares are forfeited, the share capital account is debited with the,

a) Nominal Value of Share b) Paid-up value of shares

c) Collected value of share d) None of these

51. Two companies, X, CO Y, CO go into liquidation & a new company Z, CO LTD is formed, it is case of,

a) Absorption b) External Reconstruction

c) Amalgamation d) None of these

52. Financial accounting reports are prepared primarily,

a) To value the property of Company.

b) To show mangers the results of their departments.

c) To help people make decision about resource allocation.

d) To show the value of shares in the company.

53. Stock in trade valued,

a) At Cost Price. b) At Market Price.

c) At Cost or market price whichever is less. d) None of these.

54. Share may be issued,

a) At Par b) At Premium

c) At Discount d) All of them

55. Current ratio is a,

a) Short-term solvency ratio b) Long-term solvency ratio

c) Profitability ratio d) Turnover ratio

56. The ratio which shows the proportion of profit retains in business, out of the economic year’s profit
is:

a) Retained earnings ratio b) Payout ratio

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c) Earning per share ratio d) Price earnings ratio

57. Trading and profit, loss account & balance sheet is prepared from:

a) Ledger balance b) Ledger balance, cash & Bank balance

c) Cash book & Bank book d) Trail Balance

58. The amount of resources supplied by the owner in business is called:

a) Investment b) Assets

c) Capital d) Reserves

59. The process of recording the economic effects of business transactions in a book, recording entry is
known as, which of the following?

a) Double Entry System b) Debit

c) Journalizing d) Posting

60. Partners in Pakistan can today be fixed as the following numbers:

a) 20 b) 50

c) 73 d) None of these

61. Economic resources of bussiness that are expected to be benefit in future are reffered as:

a) Liabilities b) Owner’s equity

c) Withdrawals d) Assets

62. Any expenditure incurred to increase the profit earning capacity of capital is a:

a) Revenue Expenditure b) Capital Expenditure

c) Deferred revenue expenditure d) None of these

63. Credits items identify, credit periods (1/10 net /30) means (A year has 365 days)

a) (1/99) (365/20) = 18.4% b) (2/99) (365/20) = 37.2%

c) (5/95) (365/90) = 21.4% d) None of these

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64. Which of the following option, how quickly amount receivable are converted into cash?

a) Amount receivable turnover b) Days to collect accrual receivable

c) Working capital turnover d) Total asset turnover

65. Which of the following principle deals with the valuation & recording of the asset at cost?

a) Entity Principle b) Matching Principle

c) Cost Principle d) Stable Currency Principle

66. The main electronic component used in first generation computer was:

a) Transistors b) Vacum Tubes & valves

c) Integrated Circuit d) None of these

67. Which of the following is the most powerful computer?

a) Main frame computer b) Mini Computer

c) Micro Computer d) Super Computer

68. Assembly language started to be used from:

a) First Generation Computer b) Second Generation Computer

c) Third Generation Computer d) Fourth Generation Computer

69. The auditor is most likely to examine related party transactions very carefully while vouching:

a) Credit Sales b) Sales Return

c) Credit Purchases d) Cash Purchases

70. A shareholder in a company:

a) Can be its debenture holder b) Can’t be its debenture holder

c) Can be member of Board of directors d) Can be liable of unlimited entry

71. Production function relates:

a) Cost of input b) Wages to profit

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c) Cost of output d) Input to output

72. The board of directors shall appoint the first auditor of a company:

a) With one month of completion of capital subscription of the company.

b) With one month of the promotion of the company.

c) With one month of the commencement of the business of the company.

d) With one month of the incorporation of the company.

73. Real accounts are related with:

a) Assets b) Expenses & Income

c) Customers & Creditors etc. d) None of these

74. Which of the following is the acronym for GAAP?

a) Generally Adopted Accounting Principle b) Generally Accepted Auditing Principle

c) Generally Accepted Accounting Principle d) Generally Adopted American Principle

75. Which of the followings not among the five main kinds of current assets?

a) Cash & equivalents b) Deferred income

c) Accounts receivables d) Prepaid expenses

76. The audit is not necessary required for which of the following companies?

a) Limited companies b) Corporations

c) Sole proprietorship d) Partnership

77. Which of the following feature is shown by the income statement for a merchandising company?

a) Gross profit b) Cost of goods sold

c) A sales revenue system d) All of these

78. Which of the following is a temporary account?

a) Cash b) Accounts Receivable

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c) Insurance Expense d) Accounts Payable

79. An entry that effects more than one accounts is known as:

a) Journal Entry b) Composed Entry

c) Adjusting Entry d) Reversing Entry

80. A bank offers 20% compounded monthly what would be the effective annual rates of return?

a) 20% b) 20.5%

c) 21% d) 21.99%

81. The discount amount is a:

a) Personal Accounts b) Real Account

c) Nominal Account d) Asset Account

82. Missing

83. Heavy expenditure on advertisement of new product is a:

a) Capital Expenditure b) Revenue Expenditure

c) Deferred Revenue Expenditure d) None of these

84. Which one of these is considered as a non-cash item?

a) Inventories b) Accounts payable

c) Accounts Receivable d) Depreciation

85. Opening stock appearing in trail balance will be taken to:

a) Trading account only b) Balance sheet only

c) Trading account & balance sheet d) Profit & loss account only

86. Dividend are equally paid on:

a) Authorized Capital b) Issued Capital

c) Paid-up Capital d) None of these

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87. The current account of a partner:

a) Always have a credit balance b) Always have a debit balance

c) Always have no balance d) May debit balance or credit balance

88. Wages are paid to the labor, who are engaged in production activities are termed as:

a) Direct Cost b) Indirect Cost

c) Sunk Cost d) Imputed Cost

89. The ratio which reveals on the final result of managerial policies & performance is:

a) Turnover ratio b) Profitability ratio

c) Short-term Solvency ratio d) Long-term Solvency ratio

90. Sales of Rs. 25,000, variable cost Rs. 8,000, fixed cost Rs. 5,000, Breakeven sales in value.

a) 7936 b) 7353

c) 8333 d) 9090

91. Which of the following terms refers to the use of debt financing?

a) Operating Leverage b) Financing Leverage

c) Manufacturing Leverage d) None of these

92. Which of the following statement shows assets, liabilities, & net worth as on a specific date?

a) Income statement b) Balance sheet

c) Owner’s equity statement d) Cash flow statement

93. which of the following is not a form of business organization?

a) Sole proprietorship b) Partnership

c) Joint stock company d) Corporative society

94. In which type of business, all owner share in gain & losses & all have unlimited liability for all
business debts?

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a) Sole proprietorship b) General partnership

c) Limited partnership d) Corporation

95. Which of the following form of business organization is least regulated?

a) Sole proprietorship b) General partnership

c) Limited partnership d) Corporation

96. A borrower is able to pay Rs. 40,000 in 5 years, given discount rate 12 percent, what amount of
money that leader should lend?

a) 14,186 b) 18,256

c) 22,697 d) 28,253

97. Rule of 72 for finding the number of periods is fairy applicable in which of the following discount
rates?

a) 2% to 8% b) 4% to 25%

c) 5% to 20% d) 10% to 50%

98. which of the following is the rate of return that firm’s creditors demand on new borrowing?

a) Cost of debt b) Cost of preferred stock

c) Cost of common equity d) Cost of retained earning

99. The difference between investments market value & its cost is called the _____________ of the
investments.

a) Net Present Value b) Economic Value

c) Book Value d) Future Value

100. A model which makes an assumption about the future growth of dividends is known as:

a) Dividend Price Model b) Dividend Growth Model

c) Dividend Policy Model d) All of these

….The End….

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