Accounting and Auditing MCQs MCQs

PROFESSIONAL TEST MCQs (Set-1) for the Post of Senior Auditor

PROFESSIONAL TEST MCQs (Set-1) for the Post of Senior Auditor
Shahzad F. Malik
Written by Shahzad F. Malik

PROFESSIONAL TEST MCQs with Answers (Set-1) for FPSC Senior Auditor Tests

1. Wages are paid for:
(a) Short term period
(b) Long term period
(c) All of the given options
(d) None of the given options

2. Which of the following is false?
(a) One reason for failure of small businesses is lack of managerial experience.
(b) One reason for failure of small businesses is that most entrepreneurs are younger than 25 years old
(c) One reason for failure of small businesses is neglect.
(d) One reason for failure of small businesses is weak control systems.

3. Which of the following is NOT a secondary industry?
(a) Construction industry
(b) Manufacturing industry
(c) Genetic industry
(d) Services industry

4. Industry is further divided into ______kinds.
(a) 2
(b) 3
(c) 4
(d) 5

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5. Primary Industry is divided further in to
(a) Extractive
(b) Genetic
(c) Both a & b
(d) None of these

6. Secondary Industry is divided further in to
(a) Construction
(b) Manufacturing
(c) Services
(d) All of these

7. All of the following statements are true regarding partnerships except ________.
(a) There is no partnership income tax; the individual partners pay a personal income tax on their portion of partnership profits
(b) If the partnership agreement does not specify otherwise, profits will be shared equally by the partners
(c) A partnership balance sheet is much like that of a proprietorship
(d) The death of a partner dissolves the partnership and all assets must be liquidated

8. Marketing should begin with ________.
(a) Potential customer needs
(b) The production process
(c) Identifying customer needs
(d) All of the given options

9. Which one of the country has more collectivist culture?
(a) USA
(b) Japan
(c) Pakistan
(d) UK

10. New and revised products may be tested through:
(a) Commercialization
(b) Product life cycle
(c) Family brands
(d) Marketing research

11. In which of the following do two or more organizations collaborate on a project for mutual gain?
(a) Limited partnership
(b) Joint venture
(c) Public corporation
(d) Strategic alliance

12. When a manager focuses on making whatever products are easy to produce, and then trying to sell them, that manager has a _________orientation.
(a) Marketing
(b) Production
(c) Sales
(d) Profit

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13. The law elating to Joint Stock Companies has been laid in companies Ordinance:
(a) 1984
(b) 1980
(c) 1932
(d) None of these

14. ______ refers to the standards of moral behaviour.
(a) Legality
(b) Loyalty
(c) Integrity
(d) Ethics

15. ___ is the process of locating, identifying, and attracting capable applicants.
(a) Downsizing
(b) Human resource inventory report
(c) Recruitment
(d) Strategic human resource planning

16. Which of the following is EXCLUDED from the advantages of sole proprietorship?
(a) Unlimited liability
(b) Personal satisfaction
(c) Entire profit
(d) Independence

17. ______ is the combination of a product’s qualities and features, its price, the way it is promoted and sold, and the places at which it is sold.
(a) Marketing mix
(b) Product mix
(c) Product differentiation
(d) Product positioning

18. ______ is the typical sequence of changes in demand for a product that occurs over time.
(a) The business vision statement
(b) The product life cycle
(c) Marketing research
(d) A customer-oriented approach

19. Key controllable factors in global marketing are:
(a) Marketing activities and plans
(b) Social and technical changes
(c) Government policy and legislation
(d) All of the given options

20. Which of the following is/are the component/s of business?
(a) Industry
(b) Commerce
(c) Both industry and commerce
(d) Trade and aids to trade

21. First stage in evolution of business:
(a) Industrial revolution
(b) Marketing era
(c) Entrepreneurship
(d) Globalization

22. Which of the following business type has longest life time?
(a) Sole proprietorship
(b) Partnership
(c) Joint stock company
(d) All of the given options

23. Which of the following business type, has to pay double taxes to the government?
(a) Sole proprietorship
(b) Partnership
(c) Joint stock company
(d) Cooperative Societies

24. ______ includes the rules and regulations, necessary to manage the internal affairs of the company.
(a) Memorandum of Association
(b) Article of Association
(c) Prospectus
(d) All of the given option

25. General information like Appointment, election and powers of directors, voting rights and transfer of shares mention in ____________.
(a) Charter of Company
(b) Article of Association
(c) Prospectus
(d) None of the given option

26. To call the extraordinary meeting, how many days’ notice is required?
(a) 21 days (b) 15 days
(c) 07 days (d) 30 days

27. According to Section 305 of Companies Ordinance, a company may wound up by court under which of the following circumstances:
(a) Statutory Declaration
(b) Fails to submit statutory report
(c) Expiry of Period
(d) Appointment of Liquidators

28. Which of the following is the source of acquiring of redeemable capital?
(a) Modarba Certificate
(b) Debentures
(c) Participation Term Certificates
(d) All of the given option

29. The following person cannot make a petition to the court to get an order for winding up of a company.
(a) Petition by debtor
(b) Petition by creditor
(c) Petition by contributory
(d) All of the above

30. Which of the following is the disadvantage of modified schedules and alternative workplace?
(a) Freedom in professional and personal life
(b) More Job satisfaction
(c) Complicated coordination
(d) Suitable for self starter who require little direct supervision

31. Among different managerial styles, which of the following allows most rapid decision making?
(a) Autocratic styles
(b) Democratic styles
(c) Free rein style
(d) None of the given option

32. _________ is the process of motivating others to work to meet specific objectives.
(a) Leadership
(b) Motivation
(c) Free rein style
(d) Democratic style

33. Which of the following represents the set of procedures involving both managers and subordinates in setting goals and evaluating progress?
(a) Participative Management and Empowerment
(b) Management by Objectives (MBO)
(c) Reinforcement/Behavior Modification Theory
(d) None of the given option

34. The internal environment consists of the insides forces that influence marketing strategy and decision making is/are as follows:
(a) Organization Policies
(b) Product Policies
(c) Management Structure
(d) All of the given option

35. A specific communication task to be accomplished with a specific target audience during a specific period of time is called as:
(a) Marketing Mix
(b) Advertising objective
(c) Market segmentation
(d) Marketing process

36. Dividing a market into distance groups of buyers who have distinct needs, characteristics, or behavior and who might require separate products or marketing mixes.
(a) Market segmentation
(b) Marketing Mix
(c) Marketing Penetration
(d) Marketing control

37. The actors and forces outside marketing that affect marketing management’s ability to build and maintain successful relationship with target customers are called as:
(a) Marketing Environment
(b) Market segmentation
(c) Marketing Mix
(d) Marketing Penetration

38. The set of controllable tactical marketing tools-product, price, place and promotion that the firm blends to produce the response it wants in the target market.
(a) Market segmentation
(b) Marketing Mix
(c) Marketing Penetration
(d) Marketing Environment

39. Motor cycle and car are very different from one another, but both fulfill the need for transport is an example of:
(a) Substitute product competition
(b) Brand competition
(c) International competition:
(d) Market competition

40. Which of the following focuses on job content, environment, and conditions of employment?
(a) Job description
(b) Human resource inventory report
(c) Job analysis
(d) None of the given options

41. All of the following except _________ are considered to be correct statements about marketing research.
(a) It is a systematic search for information about customers’ needs and how those needs differ.
(b) Marketing research is geared to uncover unmet consumer needs
(c) With market research, the chance product development will be able to create a product consumers want to buy increases
(d) Marketing research provides an inexpensive method for tracking consumer behaviour

42. In the marketing research process that step is to define the problem followed by:
(a) Collection of data
(b) Develop recommendation
(c) Develop the research design
(d) Implement plan

43. Which of the following is the least likely decision to be made by Operations Managers?
(a) Deciding which market areas to manufacture products for
(b) Designing and improving the jobs of the workforce
(c) Selecting the location and layout of a facility
(d) How to use quality techniques to reduce waste

44. What kind of sales person are you most likely to find working in the pharmaceutical industry?
(a) Order taker
(b) Order getter
(c) Sales engineer
(d) Missionary salesperson

45. _______ includes all of the activities involved in the sale of products to final customers.
(a) Wholesaling
(b) Retailing
(c) Marketing
(d) Distributing

46. Which of the following are the functions of management?
(a) Planning
(b) Organizing
(c) Coordinating
(d) All of the given options

47. It is difficult to transfer the rights of ownership in:
(a) Sole proprietorship
(b) Partnership
(c) All the given options
(d) None of the given options

48. A major advantage of the corporate form of organization is:
(a) Reduction of double taxation.
(b) Limited owner liability.
(c) Legal restrictions.
(d) Ease of organization

49. Statutory meeting must be held not later than ________from the date on which a public company is entitled to commence business
(a) 3 months
(b) 6 months
(c) 1 year
(d) One month

50. Which of the following is the most important determinant of a firm’s value?
(a) Earnings
(b) Debt
(c) Liabilities
(d) Liquidity

51. The marketing activity of dividing market into smaller units with similar needs and characteristics is known as:
(a) Market penetrating
(b) Target Marketing
(c) Relationship marketing
(d) Market segmentation

52. ________ refers to the standards of moral behaviour.
(a) Legality
(b) Loyalty
(c) Integrity
(d) Ethics

53. The difference between a country’s merchandise exports and its merchandise imports is the:
(a) Current account.
(b) Capital account
(c) Balance of trade
(d) Balance of payments

54. The World Trade Organization (WTO):
(a) Sets tariffs to balance international trade among nations.
(b) Is the successor to NAFTA.
(c) Rules on trade disputes between nations.
(d) Sets exchange rates to balance international trade among nations

55. Which of the following is NOT a core function of management?
(a) Planning
(b) Organizing
(c) Motivating
(d) Leading

56. In democratic style of leadership there is:
(a) Upward communication
(b) Upward and downward communication
(c) Occasional communication
(d) Downward communication

57. The following are included in a business plan:
(a) Financial information, production plans, personnel policies
(b) Goals of the business and how they will be achieved.
(c) Market analysis
(d) All of the above

58. Which markets embody sense of justice?
(a) Mixed markets
(b) Liberal markets
(c) Free markets
(d) None of the above

59. The most influential economic institutions are designed to achieve?
(a) Production of the goods
(b) Distribution of the goods
(c) Both a & b
(d) None of the above

60. Which philosopher defended the idea that we should always treat humanity as an end in itself rather than a means?
(a) Kant
(b) Mill
(c) Bentham
(d) Rawls

61. The concept that there are no relevant differences among people that can justify unequal treatment is known as?
(a) Egalitarianism
(b) Utilitarianism
(c) Socialism
(d) None of the above

62. The limited rights and correlative duties that arise when one person enters an agreement with another person is the definition of:
(a) Contract
(b) Justice
(c) Special obligations
(d) Legal rights

63. Socialist view on distribution is best described as:
(a) From each according to his ability, to each according to his needs
(b) The benefits a person receives should be proportional to his contribution
(c) From each they choose, to each as they are chosen
(d) Always treat humanity as an end in itself rather than as a means

64. Factual evidence has the following properties except?
(a) Time bound
(b) Accurate
(c) Relevant
(d) Complete

65. In which country Locke’s property rights have been influential?
(a) England
(b) Germany
(c) America
(d) Greek

66. Utilitarianism is unable to deal with following kind of moral issues?
(a) Rights
(b) Justice
(c) Both a & b
(d) None of the above

67. What are the levels on which ethical decision making occurs?
(a) Individual
(b) Organizational
(c) Business system
(d) All of the given

68. Privacy is an example of?
(a) Positive right
(b) Basic need
(c) Negative right
(d) None of the above

69. Which theory includes means of production and selling one’s labour?
(a) Capitalist systems
(b) Free economy system
(c) Socialist system
(d) None of the above

70. Equality of income and equality of opportunity is refers to:
(a) Equality
(b) Political equality
(c) Economic equality
(d) Human equality

71. Through utilitarianism offers a clear-cut method of calculating morality. What is the number of problems identified with this method?
(a) 5
(b) 4
(c) 3
(d) 2

72. Which of the following are components of free market systems?
(a) Private property system
(b) Voluntary exchange system
(c) Both a & b
(d) None of the above

73. What are the levels on which ethical decision making occurs?
(a) Individual
(b) Organizational
(c) Business system
(d) All of the given

74. Which one of the following is an alternative to moral principles?
(a) Virtue Ethics
(b) Logic Ethics
(c) Real Ethics
(d) None of the above

75. Which of the following refers to the ability of a person or a country to produce a particular good at a lower opportunity cost than another country?
(a) Absolute advantage
(b) Comparative advantage
(c) Resource efficiency
(d) Natural advantage

76. Which one of the following is not a basic type of moral standards?
(a) Utilitarianism
(b) Rights
(c) Justice
(d) Relevant

77. Which philosopher defended the idea that we should always treat humanity as an end in itself rather than a means?
(a) Kant
(b) Mill
(c) Bentham
(d) Rawls

78. Which one of the following is NOT a trait of character that makes an individual a morally good human being?
(a) Courage
(b) Temperance
(c) Hope
(d) Justice

79. The limited rights and correlative duties that arise when one person enters an agreement with another person is the definition of:
(a) Contract
(b) Justice
(c) Special obligations
(d) Legal rights

80. Which one is the justice concern of blaming or punishing persons for doing wrong?
(a) Distributive justice
(b) Redistributive justice
(c) Compensatory justice
(d) None of the given

81. Which of the following is the combining of two or more independent bodies into a single body?
(a) Joint venture
(b) Merger
(c) Management contract
(d) Licensing

82. Which one of the following does not come under Interpersonal Concordance Orientation?
(a) Trust
(b) Opinion
(c) Affection
(d) Loyalty

83. Which one is considered as primary economic institution?
(a) Business Enterprises
(b) Banks
(c) Insurance companies
(d) None of the above

84. The idea that moral rightness or wrongness is culture-dependent is an example of
(a) Moral relativism
(b) Moral absolutism
(c) Categorical imperative
(d) Universality

85. What was the number of the patients suffering from river blindness in Africa and Latin America?
(a) 16 million
(b) 17 million
(c) 17.5 million
(d) 18 million

86. How many considerations are there when to determine what the moral thing to do on any particular occasion?
(a) 2
(b) 4
(c) 3
(d) 6

87. The type with which one looks only at moral rules or actions of a particular type is known as?
(a) Rule utilitarianism
(b) Utilitarianism
(c) Both a & b
(d) None of the above

88. Which market approximates the model of the perfectly competitive free market?
(a) Agricultural market
(b) Commodity market
(c) Securities market
(d) None of the above

89. Which one of the following is not considered as part of the three stages of moral development proposed by Carol Gilligan?
(a) Social Contract Orientation
(b) principled morality
(c) conventional morality
(d) progressing from selfish

90. What is the number of characteristics that differentiate between moral and non-moral standards?
(a) 5
(b) 4
(c) 2
(d) 1

91. First principle of John Rawls theory is called:
(a) Difference principle
(b) Principle of equal liberty
(c) Principle of fair equality of opportunity
(d) Original position

92. In a command economy, all decisions are taken by the:
(a) People
(b) Government
(c) Voters
(d) Workers

93. Greater economic freedom ranking countries enjoy the following except?
(a) Highest standards of living
(b) Greatest degree of political freedom
(c) Both a & b
(d) None of the above

94. Which one of the following is not an essential component of moral reasoning?
(a) Understanding of reasonable requirement of moral standard
(b) Evidence or information regarding these moral standards
(c) Both a & b
(d) None of these

95. Which one of the following study aims to discover “what should be”?
(a) Moral Study
(b) Descriptive Study
(c) Normative Study
(d) Study of Ethics

96. Circumstances that leave a person uncertain but not altogether unsure about what he or she is doing is a feature of
(a) Excusing Conditions
(b) Moral reasoning
(c) Mitigating factors
(d) Ignorance

97. What type of resource depletion is marked by increasing rates of usage and sudden, complete depletion within a short period of time?
(a) Depletion of fossil fuels
(b) Exponential Depletion
(c) Peaked depletion
(d) Species depletion

98. Which of the following is not considered as part of the three stages of moral development proposed by Carol Gilligan?
(a) Social Contract Orientation
(b) Principled morality
(c) conventional morality
(d) progressing from selfish

99. Which of the following is the type of moral standards?
(a) Utilitarianism (b) Rights
(c) Justice (d) All of the above

100. How many basic types of moral standards?
(a) 3
(b) 4
(c) 5
(d) 6


Answers

1.     a 2.     b 3.     c 4.     a 5.     c
6.     d 7.     d 8.     d 9.     b 10.   d
11.   b 12.   b 13.   a 14.   d 15.   c
16.   a 17.   a 18.   b 19.   a 20.   c
21.   a 22.   c 23.   c 24.   b 25.   c
26.   a 27.   b 28.   c 29.   a 30.   c
31.   a 32.   a 33.   b 34.   d 35.   b
36.   a 37.   a 38.   d 39.   a 40.   c
41.   c 42.   a 43.   a 44.   a 45.   b
46.   d 47.   b 48.   b 49.   a 50.   a
51.   d 52.   d 53.   c 54.   d 55.   c
56.   b 57.   d 58.   c 59.   c 60.   a
61.   a 62.   a 63.   a 64.   a 65.   c
66.   c 67.   d 68.   c 69.   a 70.   c
71.   a 72.   c 73.   d 74.   a 75.   b
76.   d 77.   a 78.   c 79.   a 80.   b
81.   b 82.   b 83.   a 84.   a 85.   d
86.   c 87.   a 88.   a 89.   a 90.   a
91.   b 92.   b 93.   c 94.   c 95.   c
96.   c 97.   b 98.   a 99.   d 100. b
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Shahzad F. Malik

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