Government policies that focus on changing taxes and government spending are called:
(a) Fiscal policies
(b) Monetary policies.
(c) Incomes policies.
(d) Supply-side policies.
Answer: a
Who is Tax payer?
(a) Businessman
(b) Assessee
(c) Trust
(d) Farmer
Answer: b
The most important source of income of a government is:
(a) Foreign loans
(b) Sprinting of new money
(c) Sale of government property
(d) Taxes
Answer: d
What does the certification CA stand for (in Canada)?
(a) Accrued revenue
(b) Chartered Accountant
(c) All of the above
(d) Nome of the above
Answer: b
When you have yet to bill a customer for services rendered and have not received the money in the same financial period that the service was performed, then the transaction is recorded as a(n) ________ (assume accrual basis of accounting)?
(a) accrued revenue
(b) accrued expense
(c) unearned revenue
(d) prepaid expense
Answer: a
What are internal controls designed to do?
(a) only safeguard assets
(b) only ensue accurate accounting records
(c) only achieve maximum revenue
(d) safeguard assets and optimize the use of resources
Answer: d
MCQs for FPSC Senior Auditor Tests
Accounting Principles & Procedures | Fundamentals of Accounting
1. For better assessing the audit risk, auditor inquires different groups in the organizations EXCEPT:
(a) Board of governance and top level management
(b) Legal counsel
(c) Middle level management
(d) Stakeholders
2. Internal sources of audit evidence for an entity includes the following EXCEPT:
(a) Associated companies of the entity
(b) Accounting systems, records and documents
(c) Non-financial data and records
(d) Management representation and discussion
Note: An “Associated Company” is an entity in which the Company has significant influence, but not a controlling interest, over the operating and financial management policy decisions of the entity. Associated Companies are accounted for using the equity method. Significant influence is generally presumed when the Company holds between 20 percent and 50 percent of the voting rights.
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
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