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PPSC ACCOUNTS OFFICER (BS 16) FINANCE DEPARTMENT 2011 — 69 MCQs (Page 2 of 7)

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Fixed costs are those

A. Outside the control of managers
B. Which are constant per unit of output
C. Expenses that do not change as a function of the activity of a business, with in relevant period
D. None of the above

Subscriptions received in advance is

A. An income
B. A loss
C. A liability
D. An asset

In straight line method, the depreciation charge is:

A. A fixed percentage of the cost of the asset each year
B. Always 5% of the cost of the asset each year
C. A fixed percentage of the book value of the asset each year
D. None of the above.

Depreciation is to be charged because

A. The machinery gets old with time
B. Of physical wear and tear
C. Of fall in the market value of the asset
D. The plant is not as good as new one

The purpose of double entry bookkeeping is:

A. To apply the dual aspect concept.
B. To prepare books of prime entry accurately
C. To avoid errors
D. To record capital and revenue transactions correctly

Which account will have a credit balance?

A. Carriage inwards
B. Carriage outwards
C. Discount received
D. Discount allowed

Sales= 150,000 Gross profit = 15,000 Net loss= 4,000 Then the operating expenses will be

A. 19,000
B. 165,000
C. 131,000
D. 11,000

Cost of sale is equal to

A. Sales -purchases 895
B. Opening stock – closing stock + purchase – returns out
C. Purchases – returns out + closing stock if.
D. Gross profit – expenses

The Current Ratio formula is

A. All assets: all liabilities
B. All assets: current liabilities
C. Current assets: all liabilities
D. Current assets: current liabilities

A petty cash book records

A. All petty cash receipts
B. Petty transactions
C. Cash receipts from customers
D. All petty cash expenses

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