CPA Exam Mock Test 12 - Online MCQ Exam

A discount of $2000 was given to a supplier on his prompt repayment of debt but the cashier entered the gross amount in cash book. What should be the adjustment in cash to work out the correct balance of cash book?

1 Mark(s)

Your Answer:

$2000 will be debited in cash book $2000 will be debited in cash book
$2000 will be credited in cash book $2000 will be credited in cash book
$4000 will be debited in cash book $4000 will be debited in cash book
$4000 will be credited in the cash book $4000 will be credited in the cash book

A contingent liability ______?

1 Mark(s)

Your Answer:

Is never a liability Is never a liability
Is always a liability Is always a liability
May or may not become a liability May or may not become a liability
None of these None of these

The drawer of a trade bill passes relevant entries with regard to the transaction involved in it. But, in case of an accommodation bill, he passes an entry in addition to the usual entries. The additional entry so passed is with respect to

1 Mark(s)

Your Answer:

Discounting of the bill with the bank Discounting of the bill with the bank
Payment of the bill on due date Payment of the bill on due date
Remitting or receiving the amount Remitting or receiving the amount
Sending the bill to bank for collection Sending the bill to bank for collection

The systematic flow of services, goods or information from the buying material for product delivery to the customers is known as __________?

1 Mark(s)

Your Answer:

supply chain supply chain
value chain value chain
material flow chain material flow chain
manufacturing flow chain manufacturing flow chain

The span time from initial research and development of product till support and customer service, if not offered for that particular product will be called __________?

1 Mark(s)

Your Answer:

product life cycle product life cycle
life cycle budgeting life cycle budgeting
life cycle costing life cycle costing
target costing target costing

Section 52, Cr.P.C deals with mode of search of a ________________?

1 Mark(s)

Your Answer:

Woman Woman
Secret place Secret place
Government servant Government servant
None of above None of above

A major facet of financial management involves providing the financial necessary to support _____?

1 Mark(s)

Your Answer:

Loans Loans
Assets Assets
Debts Debts
None of these None of these

The price per share divided by earnings per share is the formula for calculating ___________?

1 Mark(s)

Your Answer:

price earnings ratio price earnings ratio
earnings price ratio earnings price ratio
pricing ratio pricing ratio
earnings ratio earnings ratio

As per O. XIII, Rule 3, the Court__________________?

1 Mark(s)

Your Answer:

Can reject irrellevant and inadmissible document at any stage
Can submit documents at any stage Can submit documents at any stage
Both (a) and (b) Both (a) and (b)
None of the these None of the these

The prospectus which describe the new securities are distributed before their registration is classified as ____________?

1 Mark(s)

Your Answer:

red herring prospectus red herring prospectus
white herring prospectus white herring prospectus
preemptive prospectus preemptive prospectus
securitized prospectus securitized prospectus

Rule 7 of the Good Conduct Prisoners Probational Release Rules, 1927 empowers_________ with licence revocation power?

1 Mark(s)

Your Answer:

Assistant Director Assistant Director
Director, Reclamation Director, Reclamation
Superintendent Jail Superintendent Jail
Government Government

The negotiable certificate of deposit with one year maturity pays the interest ____________?

1 Mark(s)

Your Answer:

annually annually
semiannually semiannually
monthly monthly
every two weeks every two weeks

Suit by or against corporations dealt by_____________________?

1 Mark(s)

Your Answer:

O. XXVIII O. XXVIII
O. XXIX O. XXIX
O. XXX O. XXX
None of the these None of the these

Full Form of BCCI ?

1 Mark(s)

Your Answer:

Bank of Commerce and Cooperation International
Bank of Central Cooperation International
Bank of Credit and Commerce International
None of These None of These

An approach which yields the benefits of normal costing and the actual manufacturing overhead is classified as ____________?

1 Mark(s)

Your Answer:

unadjusted allocation rate approach unadjusted allocation rate approach
adjusted budget rate approach adjusted budget rate approach
unadjusted budget rate approach unadjusted budget rate approach
adjusted allocation rate approach adjusted allocation rate approach

What is the limitation period against a mortgagee to redeem or to recover possession of immovable property which is mortgaged?

1 Mark(s)

Your Answer:

60 years 60 years
50 years 50 years
40 years 40 years
30 years 30 years

When all or some of the terms of the contract are cancelled.The contract is said to be________?

1 Mark(s)

Your Answer:

Altered Altered
Novated Novated
Rescinded Rescinded
None of these None of these

Section 27, of the National Accountability Ordinance, 1999 empowers __________ to seek assistance?

1 Mark(s)

Your Answer:

Chairman NAB Chairman NAB
Any authorized officer Any authorized officer
Both A and B Both A and B
None of above None of above

The final order for change of investigation shall be passed by head of investigation in the general police area who shall ?

1 Mark(s)

Your Answer:

Not need to record reason for change of such investigation
Record the reason for change of such investigation
Both A. and B. D. None of the above Both A. and B. D. None of the above

Time limitation for filing appeal against dismissal of claim or objection by aggrieved party is ________________ days?

1 Mark(s)

Your Answer:

10 10
14 14
20 20
None of above None of above

If the selling price is $5000, variable manufacturing cost per unit is $1500 and variable marketing cost per unit is $500, then contribution margin per unit will be __________?

1 Mark(s)

Your Answer:

$7,000 $7,000
$3,000 $3,000
$4,000 $4,000
$5,000 $5,000

Section 37, Cr.P.C deals with ________ powers of Magistrate?

1 Mark(s)

Your Answer:

Actual Actual
Additional Additional
None of the above None of the above
None of above None of above

O. XVI, of C.P.C. contains ____________ Rules?

1 Mark(s)

Your Answer:

19, 19,
21, 21,
23, 23,
None of the these None of the these

Under section 25-A _____________ may apply for reconciliation?

1 Mark(s)

Your Answer:

Accused Accused
Prosecutor General Prosecutor General
Chairman NAB Chairman NAB
None of above None of above

The Juvenile Justice System Ordinance, 2000 extends to_____________?

1 Mark(s)

Your Answer:

Specific areas Specific areas
Whole of Pakistan Whole of Pakistan
Both A and B Both A and B
None of above None of above

Outstanding salaries is shown as___________?

1 Mark(s)

Your Answer:

An Asset in the Balance Sheet An Asset in the Balance Sheet
A Liability A Liability
By adjusting it in the P & L A/c By adjusting it in the P & L A/c
Both B. and C. above Both B. and C. above

Section ___________ of the Control of Narcotic Substances Act, 1997 keep sanction upon bail?

1 Mark(s)

Your Answer:

50 50
51 51
52 52
None of above None of above

Total cost of producing similar products divided by number of units produced is a technique known as ____________?

1 Mark(s)

Your Answer:

sale costing system sale costing system
job costing system job costing system
price costing system price costing system
process costing system process costing system

The major participants in forward markets are __________?

1 Mark(s)

Your Answer:

commercial banks commercial banks
broker deals broker deals
investment banks investment banks
all of the above all of the above

If an ordinary annuity pays Rs. 4,000 for 20 years with an 8% required return, then the PV will be approximately?

1 Mark(s)

Your Answer:

Rs. 19,636 Rs. 19,636
Rs. 39,272 Rs. 39,272
Rs. 80,000 Rs. 80,000
None of these None of these

The cessation of life in the body is called______________?

1 Mark(s)

Your Answer:

Illness Illness
Death Death
Irregularity Irregularity
All of above All of above

Article 163, Qanun-e-Shahadat deals with________________?

1 Mark(s)

Your Answer:

Special oath Special oath
General oath General oath
Refreshment of memory Refreshment of memory
None of these None of these

As per section 10, of the Muslim Family laws Ordinance, 1961 where no mode of payment of dower is prescribed in Nikah-nama or marriage contract the entire amount of dower shall be presumed to be ?

1 Mark(s)

Your Answer:

Payable on demand Payable on demand
Paid Paid
Do not paid Do not paid
None of the above None of the above

When the wound pierces the human body from one surface to the other it is called_____________?

1 Mark(s)

Your Answer:

Penetrating wound Penetrating wound
Performating wound Performating wound
Both A and B Both A and B
None of above None of above

Project which is started by firm for increasing sales is classified as______________?

1 Mark(s)

Your Answer:

New expansion project New expansion project
Old expanded project Old expanded project
Firm borrowing project Firm borrowing project
Product line selection Product line selection

Double entry implies that

1 Mark(s)

Your Answer:

Recording entries in journal Recording entries in journal
Recording entries in Ledger account Recording entries in Ledger account
Recording two aspects of every transaction
Recording every transaction in books Recording every transaction in books

If the gross margin is $9000 and the cost of goods sold is $8000 then the revenue will be _________?

1 Mark(s)

Your Answer:

$1,000 $1,000
−$1000 −$1000
$17,000 $17,000
−$17000 −$17000

Section __________ of the Juvenile Justice System Ordinance, deals with prohibition to publish proceeding of cases in news papers, magazine journal etc. in which it discloe the name addresses or any other identification?

1 Mark(s)

Your Answer:

6 6
7 7
8 8
All of above All of above

Section 9 clause (b) provides punishment of imprisonment which may extend ____________ years?

1 Mark(s)

Your Answer:

Five years Five years
Seven years Seven years
Ten years Ten years
None of above None of above

In contract of guarantee the person at whose place guarantee given is called __________________?

1 Mark(s)

Your Answer:

Surety holder Surety holder
Principal debtor Principal debtor
Both (a) and (b) Both (a) and (b)
None of above None of above

Order XX, Rule 5, prescribes modes of __________________?

1 Mark(s)

Your Answer:

The Court state decision conclusively The Court state decision conclusively
That Court to state its decision on each issue
Both A and B Both A and B
None of the these None of the these

Long term assets without any physical existence but, possessing a value are called ______?

1 Mark(s)

Your Answer:

Investments Investments
Intangible assets Intangible assets
Fixed assets Fixed assets
None of these None of these

The challan Form has __________ column?

1 Mark(s)

Your Answer:

6 columns 6 columns
7 columns 7 columns
8 columns 8 columns
None of above None of above

Excess of sale over cost of goods in an accounting period is termed as ______?

1 Mark(s)

Your Answer:

Retained earnings Retained earnings
Net Profit Net Profit
Gross Profit Gross Profit
None of these None of these

The investment decision is the most important of the firm’s three major decisions, when it comes to:

1 Mark(s)

Your Answer:

Value creation Value creation
Value addition Value addition
Value proposition Value proposition
Value deletion Value deletion

Transfer through institutions such as mutual funds or banks are classified as________________?

1 Mark(s)

Your Answer:

Non-financial intermediary Non-financial intermediary
Financial intermediary Financial intermediary
Savers intermediary Savers intermediary
Discounted intermediary Discounted intermediary

Identification parade is a kind of_________________?

1 Mark(s)

Your Answer:

Circumstantial evidence Circumstantial evidence
Corroborative evidence Corroborative evidence
Fundamental evidence Fundamental evidence
None of these None of these

___________ Government makes rules for sale of stamps?

1 Mark(s)

Your Answer:

Appropriate Appropriate
Federal Federal
Provincial Provincial
None of these None of these

The number of years forecasted to recover an original investment is classified as ___________?

1 Mark(s)

Your Answer:

payback period payback period
forecasted period forecasted period
original period original period
investment period investment period

As per Article 45 of the Qanun-e-Shahadat admissions are not conclusive proof of the matters admitted but they may operate as_______________?

1 Mark(s)

Your Answer:

Guideline Guideline
Estoppel Estoppel
Final conclusions Final conclusions
None of these None of these

The adjustment to be made for prepaid expenses is____________?

1 Mark(s)

Your Answer:

Add prepaid expenses to respective expenses and show it as an asset
Deduct prepaid expenses from respective expenses and show it as an asset
Add prepaid expenses to respective expenses and show it as a liability
Deduct prepaid expenses from respective expenses and show it as a liability

The Eurobonds are denominated in only one currency which is ___________?

1 Mark(s)

Your Answer:

Canadian dollars Canadian dollars
us dollars us dollars
Euros Euros
Japanese yen Japanese yen

The costing and allocating situation, in which the indirect cost allocated amount is less than actually incurred amount is known as ___________?

1 Mark(s)

Your Answer:

over allocated budget over allocated budget
under allocated budget under allocated budget
under allocated indirect cost under allocated indirect cost
over allocated direct cost over allocated direct cost

If target operating income is $38000, contribution margin per unit is $400, then the number of units must be sold to earn targeted operating income will be ___________?

1 Mark(s)

Your Answer:

65 units 65 units
75 units 75 units
95 units 95 units
85 units 85 units

In today’s global world, an outsourcing of products or services from lower cost countries is classified as __________?

1 Mark(s)

Your Answer:

differential in-sourcing differential in-sourcing
off-shoring off-shoring
incremental outsourcing incremental outsourcing
differential outsourcing differential outsourcing

There are _________ modes of death?

1 Mark(s)

Your Answer:

Two Two
Three Three
Four Four
None of above None of above

No suit shall be defeated by reason of __________________ as provided in Order, 1, Rule 9 ?

1 Mark(s)

Your Answer:

Mis-joinder and non joinder of the parties
Lack of documents Lack of documents
None of the above None of the above
None of the these None of the these

If the difference in costs is $9000 and the difference in machine hours is $15000, then slope coefficient would be ___________?

1 Mark(s)

Your Answer:

1.24 1.24
0.24 0.24
0.6 0.6
1.667 1.667

The residual claims, limited rights, limited liability and dividend payments on discrete basis are considered as ____________?

1 Mark(s)

Your Answer:

characteristics of fundamental stock characteristics of fundamental stock
characteristics of claimed stock characteristics of claimed stock
characteristics of common stock characteristics of common stock
characteristics of preferred stock characteristics of preferred stock

When a plaint is presented in Family Court it shall fix a date of not more than ______________ days for defendants appearance?

1 Mark(s)

Your Answer:

15 15
30 30
45 45
None of the above None of the above

Article 175 A in 1973 constitution deals with___________?

1 Mark(s)

Your Answer:

appointments of judges of Supreme Court appointments of judges of Supreme Court
high courts high courts
federal Shariat courts federal Shariat courts
all of these all of these

If we take goods for own use we should ________?

1 Mark(s)

Your Answer:

Debit Purchases Account; Credit Drawings Account
Debit Drawings Account; Credit Purchases Account
Debit Drawings Account; Credit Stock Account
None of these None of these

The enclosing part of human head to brain is called_______________?

1 Mark(s)

Your Answer:

Carnium Carnium
Spinal Cord Spinal Cord
Parietal bone Parietal bone
None of above None of above

A witness who submits affidavit can be ordered by Court for ____________ as provided in O.XIX,R.2,?

1 Mark(s)

Your Answer:

2nd affidavit 2nd affidavit
Application for submission of affidavit Application for submission of affidavit
Cross examination of deponents Cross examination of deponents
None of the these None of the these

Under Order 11 of the Executive Orders on Parole, 1934 the licences of the prisoners whose parole release has been sanctioned by the Government will be prepared in triplicate in___________________?

1 Mark(s)

Your Answer:

All copies in English All copies in English
Two copies in Urdu and one copy in English
Two copies in English and one copy in Urdu
All copies in Urdu All copies in Urdu

Police Order, 2002 consist __________ Articles?

1 Mark(s)

Your Answer:

167 167
177 177
187 187
None of the above None of the above

Section 45, of the Specific Relief Act, deals with______________?

1 Mark(s)

Your Answer:

Orders to public servants for the performance of certain specific acts
Orders to any private person for the performance of specific acts
Orders to Both A and B Orders to Both A and B
Non of These Non of These

Order_____ to ______ of the Executive Orders on Parole, 1934 deals with final release of prisoners?

1 Mark(s)

Your Answer:

50 to 55 50 to 55
50 to 53 50 to 53
50 to 54 50 to 54
50 to 55 50 to 55

The maturity date of a bond refers to ______?

1 Mark(s)

Your Answer:

Date when interest rate changes Date when interest rate changes
Date when the bond is issued Date when the bond is issued
Date when principal will be repaid Date when principal will be repaid
None of these None of these

An asset posses which of the following?

1 Mark(s)

Your Answer:

Future economic benefits for the business
All kind of benefits for the business All kind of benefits for the business
Expenses for the business Expenses for the business
Merits and Demerits for the business Merits and Demerits for the business

An appeallate Court has power to________________?

1 Mark(s)

Your Answer:

Determine a case finally Determine a case finally
Frame new issues and remand the case Frame new issues and remand the case
Both A and B Both A and B
None of the these None of the these

In zero coupon bonds, the increase in duration with respect to maturity must be at ___________?

1 Mark(s)

Your Answer:

decreasing rate decreasing rate
increasing rate increasing rate
alarming rate alarming rate
inelastic rate inelastic rate

If goods worth 1,750 returned to a supplier is wrongly entered in sales return book as 1,570, then

1 Mark(s)

Your Answer:

Net Profit will decrease by 3,140 Net Profit will decrease by 3,140
Gross Profit will increase by 3,320 Gross Profit will increase by 3,320
Gross Profit will decrease by 3,500 Gross Profit will decrease by 3,500
Gross Profit will decrease by 3,320 Gross Profit will decrease by 3,320

The bond which is denominated in dollars and is issued in European financial markets is considered as __________?

1 Mark(s)

Your Answer:

Australian bonds Australian bonds
Eurobonds Eurobonds
interbank bonds interbank bonds
interbank bonds interbank bonds

Order____ of the Executive Orders on Parole, 1934 deals with agreement in writing between Parole Officer and employer?

1 Mark(s)

Your Answer:

23(5) 23(5)
23A 23A
24 24
25 25

Evaluating Your Answers

CPA Exam Mock Test 12 : Question 1 of 75