CPA Exam Mock Test 13 - Online MCQ Exam

Specialist of internal organs of body is called ________________?

1 Mark(s)

Your Answer:

Interest Interest
Obstetrician Obstetrician
Both A and B Both A and B
None of above None of above

Which of the following best describes the application of generally accepted accounting principles to the valuation of accounts receivable?

1 Mark(s)

Your Answer:

Matching principle — The loss due to an uncollectible account is recognized in the period in which the sale is made, not in the period in which the account receivable is determined to be worthless.
Realization principle — Accounts receivable are shown at their net realizable value in the balance sheet.
Cost principle — Accounts receivable are shown at the initial cost of the merchandise to customers, less the cost the seller must pay to cover uncollectible accounts.
None of these None of these

An income available for shareholders after deducting expenses and taxes from revenues is classified as______________?

1 Mark(s)

Your Answer:

Net income Net income
Net earnings Net earnings
Net expenses Net expenses
Net revenues Net revenues

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

The decisions regarding usage of material, kind and changes in plant processing are a part of ____________?

1 Mark(s)

Your Answer:

past management past management
future management future management
help management help management
cost management cost management

What is the normal balance of a Revenue account in financial accounting?

1 Mark(s)

Your Answer:

Debit Debit
Credit Credit
Both Debit and Credit Both Debit and Credit
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

Order_____ to _____ of the Executive Orders on Parole, 1934 deals with concentration of Jails and duties of Superintendent of Jail?

1 Mark(s)

Your Answer:

14 to 20 14 to 20
15 to 18 15 to 18
15 to 20 15 to 20
15 to 21 15 to 21

Article_________, of the Qanun-e-Shahadat defines “Evidence”?

1 Mark(s)

Your Answer:

2(a) 2(a)
2(b) 2(b)
2(c) 2(c)
None of these None of these

“Public place” includes any________________?

1 Mark(s)

Your Answer:

Public conveyance Public conveyance
Hotel Hotel
Shop or any other place contended by use
All of above All of above

Constitution of 1962, provided ___________ form of government ?

1 Mark(s)

Your Answer:

Parliamentary Parliamentary
Presidential Presidential
None of the above None of the above
None of these None of these

Undue influence make a contract________________?

1 Mark(s)

Your Answer:

Void Void
Voidable Voidable
Valid Valid
None of above None of above

As per section 4, No Person shall be appointed as a judge of Family Court unless he is or has been or is qualified to be appointed as_______________?

1 Mark(s)

Your Answer:

Additional District Judge Additional District Judge
District Judge District Judge
A Civil Judge A Civil Judge
All of above All of above

What is used in preparing trial balance?

1 Mark(s)

Your Answer:

General Journal General Journal
Balance Sheet Balance Sheet
Ledger Accounts Ledger Accounts
None of these None of these

The income statement should be prepared _______?

1 Mark(s)

Your Answer:

After the balance sheet and before the retained earnings statement
Before the retained earnings statement and balance sheet
After the retained earnings statement and before the balance sheet
None of these None of these

The current market price is multiplied to the conversion rate received on conversion to calculate ?

1 Mark(s)

Your Answer:

conversion value conversion value
current value current value
market value market value
stock value stock value

If the fixed setup cost is $21000 and the variable setup cost is $11000, then the setup cost would be _________?

1 Mark(s)

Your Answer:

$12,000 $12,000
$15,000 $15,000
$10,000 $10,000
$32,000 $32,000

The formal information systems, used in organizations to focus company’s learning and attention, given to the most important strategic issues are known as ____________?

1 Mark(s)

Your Answer:

interactive control system interactive control system
belief systems belief systems
boundary systems boundary systems
diagnostic control systems diagnostic control systems

Section 2, of The Sale of Goods Act is about ________________?

1 Mark(s)

Your Answer:

Principles Principles
Definitions Definitions
Exceptions Exceptions
None of above None of above

Abrasion is divided in_____ types?

1 Mark(s)

Your Answer:

One One
Two Two
Three Three
Four Four

Section 16-B of the National Accountability Ordinance, 1999 deals with __________________?

1 Mark(s)

Your Answer:

Joint trial Joint trial
Contempt of Chairman orders Contempt of Chairman orders
Contempt of Court Contempt of Court
None of above None of above

If the equilibrium interest rate increases with respect to increase in interest rate, then the movement along the supply of funds curve show a/an __________?

1 Mark(s)

Your Answer:

shift left shift left
shift right shift right
upside movement upside movement
downside movement downside movement

You just won a prize, you can either receive Rs. 1000 today or Rs. 1,050 in one year. Which option do you prefer and why if you can earn 5 percent on your money?

1 Mark(s)

Your Answer:

Rs. 1,000 because it has the higher future value
Rs. 1,000 because you receive it sooner Rs. 1,000 because you receive it sooner
Rs. 1,050 because it is more money Rs. 1,050 because it is more money
Either because both options are of equal value

Every marriage solemnized under the Muslim Law, shall be registered as provided in?

1 Mark(s)

Your Answer:

Section 4, of The Muslim Family laws Ordinance, 1961
Section 5, of The Muslim Family laws Ordinance, 1961
Both A and B Both A and B
None of the above None of the above

Whoever hinders or obstructs any officer in the performance of his functions under the Control of Narcotics Substances Act, 1997 shall be punished with rigorous imprisonment for a term which may extend to_______________?

1 Mark(s)

Your Answer:

One year One year
Two years Two years
Three years Three years
None of above None of above

The Court Fees for suits for moveable property of no market values is dealt by section______________?

1 Mark(s)

Your Answer:

7 (iv) of the Court Fees Act, 1870 7 (iv) of the Court Fees Act, 1870
7 (v) of the Court Fees Act, 1870 7 (v) of the Court Fees Act, 1870
7 (vi) of the Court Fees Act, 1870 7 (vi) of the Court Fees Act, 1870
None of these None of these

The Provincial Government or any person aggrieved by an order of acquittal passed by a Juvenile Court, may, within __________ days, prefer an appeal against such order?

1 Mark(s)

Your Answer:

Fifteen days Fifteen days
Twenty days Twenty days
Thirty days Thirty days
None of above None of above

Temporary injunction granted by the Court is regulated by the_____________?

1 Mark(s)

Your Answer:

Specific Relief Act Specific Relief Act
Code of Civil Procedure Code of Civil Procedure
Transfer of Property Act Transfer of Property Act
Non of These Non of These

A cost, consists of some fixed and some variable cost with respect to machine setup hours is termed as _________?

1 Mark(s)

Your Answer:

setup cost setup cost
batch cost batch cost
facility cost facility cost
lump sum cost lump sum cost

Any property owned, controlled or belonging to an accused, whether directly or indirectly, or in name of his spouse or relatives or associates whether within or without Pakistan for which they cannot reasonably account is called____________?

1 Mark(s)

Your Answer:

Assets Assets
Case property Case property
Supporting properly Supporting properly
None of above None of above

A loan that is repaid on monthly, quarterly and annual basis in equal payments is classified as____________?

1 Mark(s)

Your Answer:

Amortized loan Amortized loan
Depreciated loan Depreciated loan
Appreciated loan Appreciated loan
Repaid payments Repaid payments

The Judge of Family Court may act under section ___________ Cr.P.C and may make orders for maintenance under that section?

1 Mark(s)

Your Answer:

388 388
488 488
Both A and B Both A and B
None of the above None of the above

Order L of C.P.C deals with___________________?

1 Mark(s)

Your Answer:

Provincial Small Causes Courts Provincial Small Causes Courts
Ordinary Civil Courts Ordinary Civil Courts
Presidency Small Causes Courts Presidency Small Causes Courts
None of the these None of the these

The type of bond for which the bonds present value is greater than bonds face value is classified as ____________?

1 Mark(s)

Your Answer:

coupon bond coupon bond
interest bonds interest bonds
discount bond discount bond
premium bond premium bond

The lump sum cost that remains unchanged in total despite of changes in total volume is classified as __________?

1 Mark(s)

Your Answer:

unchanged price unchanged price
unchanged cost unchanged cost
fixed overhead cost fixed overhead cost
variable overhead cost variable overhead cost

The factor used to predict the dependent variable is named as ___________?

1 Mark(s)

Your Answer:

independent variable independent variable
function variable function variable
evaluation variable evaluation variable
estimation variable estimation variable

The depository institutions such as thrifts include _____________?

1 Mark(s)

Your Answer:

savings associations savings associations
savings banks savings banks
credit unions credit unions
all of the above all of the above

As per Article 85, of the Police Order, 2002 there shall ba a National Public Safety Commission consisting of ___________ members and the ex-officio Chairperson?

1 Mark(s)

Your Answer:

12 12
14 14
15 15
None of the above None of the above

Which of the following businesses would most likely use process costing?

1 Mark(s)

Your Answer:

An auto repair shop An auto repair shop
A law firm A law firm
A maker of frozen orange juice A maker of frozen orange juice
None of these None of these

Article _____, of the Police Order, 2002 empowers Provincial Police Officer to make rules with the approval of the Government, may by notification in the Official gazette make rules for carrying into effect the provision of this Order_______________?

1 Mark(s)

Your Answer:

111 111
112 112
113 113
None of the above None of the above

In pledge bailor is called_________________?

1 Mark(s)

Your Answer:

Pawnor Pawnor
Pawnee Pawnee
Both (a) and (b) Both (a) and (b)
None of above None of above

The main objective of providing depreciation is to?

1 Mark(s)

Your Answer:

Calculate the true profit Calculate the true profit
Show the true financial position in the Balance Sheet
Provide funds for replacement of fixed assets
Both A. and B. above Both A. and B. above

The transactions that came into being when borrowing and lending of excess money occurs, are considered as _________?

1 Mark(s)

Your Answer:

annual funds transaction annual funds transaction
liable funds transactions liable funds transactions
federal funds transaction federal funds transaction
functional funds transaction functional funds transaction

Accounts payable, accruals and notes payable are listed on balance sheet as________?

1 Mark(s)

Your Answer:

Accrued liabilities Accrued liabilities
Current liabilities Current liabilities
Accumulated liabilities Accumulated liabilities
Non-current liabilities Non-current liabilities

If the flexible budget amount is $7500 and the sales volume variance is $6500, then the static budget amount would be ____________?

1 Mark(s)

Your Answer:

$7,500 $7,500
$6,500 $6,500
$1,000 $1,000
$10,000 $10,000

If the demand in units are 18000, relevant ordering cost for each year is $150 and an order quantity is 1500, then annual relevant ordering cost would be __________?

1 Mark(s)

Your Answer:

$200 $200
$190 $190
$160 $160
$180 $180

Term structure premium, an inflation of bond and bond default premium are included in_________________?

1 Mark(s)

Your Answer:

Risk factors Risk factors
Premium factors Premium factors
Bond buying factors Bond buying factors
Multi model Multi model

For which step of accounting process the accountants of business entity prepare financial statements?

1 Mark(s)

Your Answer:

Identification of economic event Identification of economic event
Communication of financial information Communication of financial information
Recording financial information Recording financial information
Making decisions about business Making decisions about business

In the light of Article 100 of constitution of Pakistan, who is subjected to appoint attorney general of Pakistan?

1 Mark(s)

Your Answer:

Prime Minister Prime Minister
President President
Chief Justice Chief Justice
Chief of Army staff Chief of Army staff

The right of stockholders of firm that new shares must be offered to existing stockholders first, rather than new stock holders is classified as ____________?

1 Mark(s)

Your Answer:

non-offered rights non-offered rights
preemptive rights preemptive rights
existing rights existing rights
securitize rights securitize rights

The type of contract which involves the immediate exchange of funds and assets is classified as __________?

1 Mark(s)

Your Answer:

spot contract spot contract
forward contract forward contract
future contracts future contracts
present contract present contract

If a company revaluates its fixed assets, the current ratio of the company will:

1 Mark(s)

Your Answer:

Improve if assets are revalued upward Improve if assets are revalued upward
Remain unaffected Remain unaffected
Improve if assets are revalued downwards
Undergo change only if liabilities are remaining constant

Revision power can be exercised by High Court or District Court on________________?

1 Mark(s)

Your Answer:

Question of law Question of law
Question of fact Question of fact
Both A and B Both A and B
None of the these None of the these

An equation in which total assets are multiplied to profit margin is classified as _________?

1 Mark(s)

Your Answer:

du DuPont equation du DuPont equation
turnover equation turnover equation
preference equation preference equation
common equation common equation

“Senior ranks” under the Police Order, 2002 means Police Officer above the rank of_______________?

1 Mark(s)

Your Answer:

Assistant Sub Inspector Assistant Sub Inspector
Sub-Inspector Sub-Inspector
Inspector Inspector
None of the above None of the above

Sadism, masochism, fetichism are kinds of_______________?

1 Mark(s)

Your Answer:

Sexual intercourse Sexual intercourse
Sexual perversions Sexual perversions
Both A and B Both A and B
None of above None of above

Purchase cost of assets over its useful life is classified as_________?

1 Mark(s)

Your Answer:

Appreciation Appreciation
Depreciation Depreciation
Appreciated assets Appreciated assets
Appreciated liabilities Appreciated liabilities

Time limitation under C.P.C by a person disposed of immovable property and disputing the right of decree holder or purchaser at a sale in execution of a decree to be put into execution is________________?

1 Mark(s)

Your Answer:

Thirty days, from the date of dispossession
Fiftty days, from the date of dispossession
Sixty days, from the date of dispossession
None of above None of above

In adjustment issues and data collection, the inflation affects the _________?

1 Mark(s)

Your Answer:

cost driver and cost cost driver and cost
cost object and cost cost object and cost
heterogeneous cost heterogeneous cost
homogenous cost homogenous cost

The face value of a bond is Rs. 1,000, coupon rate is 5%, and market price is Rs. 950. What is the approximate YTM?

1 Mark(s)

Your Answer:

5.26% 5.26%
6.00% 6.00%
6.90% 6.90%
None of these None of these

Order XLI, Rule 5(2), of C.P.C. deals with ________________?

1 Mark(s)

Your Answer:

Stay of execution by Court which passed the decree
Stay of execution by Appellate Court Stay of execution by Appellate Court
Both (a) and (b) Both (a) and (b)
None of the these None of the these

When security for costs may be required from plaintiff_________________?

1 Mark(s)

Your Answer:

When plaintiff is died When plaintiff is died
When plaintiff is out of the country and does not possess any immoveable property in the country
When plaintiff failed to produce evidence regarding his suit
None of the these None of the these

The determined price at which the company expects to pay for every single unit is called ___________?

1 Mark(s)

Your Answer:

standard price standard price
input price input price
actual input actual input
output price output price

The accountant of Leo Ltd. recorded a payment by cheque to a creditor for supply of materials as 1,340.56. The bank recorded the cheque at its correct amount of 3,140.56. The Company has not passed any rectification entries and the error is not detected through the bank reconciliation. The impact of this error is

1 Mark(s)

Your Answer:

The Trial Balance will not agree The Trial Balance will not agree
The balance of creditors is understated The balance of creditors is understated
The purchases are understated The purchases are understated
The favorable bank balance as per Pass Book is less than the Bank balance as per Cash book

Evaluating Your Answers

CPA Exam Mock Test 13 : Question 1 of 64