CPA Exam Mock Test 6 - Online MCQ Exam

Payback period in which an expected cash flows are discounted with help of project cost of capital is classified as___________________?

1 Mark(s)

Your Answer:

Discounted payback period Discounted payback period
Discounted rate of return Discounted rate of return
Discounted cash flows Discounted cash flows
Discounted project cost Discounted project cost

In a balance sheet, the total of common stock and retained earnings are denoted as _____?

1 Mark(s)

Your Answer:

Common Perpetuity Common Perpetuity
Common Equity Common Equity
Due Equity Due Equity
None of these None of these

Which term is used in connection with monetary policy?

1 Mark(s)

Your Answer:

Bank rate Bank rate
Market rate Market rate
Exchange rate Exchange rate
Wage rate Wage rate

Which of the following are incorrect? (I) Goods sold for cash → Debit: Cash | Credit: Sale (II) Goods bought on credit from T Carter → Debit: Purchase | Credit: T Carter (III) Goods returned by us to C Barry → Debit: C Barry | Credit: Outward (IV) Van bought for cash → Debit: Purchase | Credit: Cash

1 Mark(s)

Your Answer:

(i) And (iii) Only (i) And (iii) Only
(ii) And (iv) only (ii) And (iv) only
(iv) Only (iv) Only
None of these None of these

An average inflation rate which is expected over life of security is classified as__________?

1 Mark(s)

Your Answer:

Inflation premium Inflation premium
Off season premium Off season premium
Nominal premium Nominal premium
Required premium Required premium

The non-competitive bidders get the allocation of treasury bills on __________?

1 Mark(s)

Your Answer:

federal basis federal basis
last basis last basis
firstly basis firstly basis
preferential basis preferential basis

According to Article 175-A of the Constitution of Pakistan, the initial appointment of an Additional Judge in the High Court is made for the period of_________?

1 Mark(s)

Your Answer:

One year One year
Two years Two years
Three years Three years
Five years Five years

According to section 4(I) Cr.P.C investigation means a proceeding conducted by________________?

1 Mark(s)

Your Answer:

Police Police
Magistrate Magistrate
Complainant Complainant
None of above None of above

The rule of Res-gestae is provided in Article______________ of Qanun-e-Shahadat?

1 Mark(s)

Your Answer:

Article 18 Article 18
Article 19 Article 19
Article 20 Article 20
None of these None of these

Death is of ______________ types?

1 Mark(s)

Your Answer:

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

Liabilities are which of the following?

1 Mark(s)

Your Answer:

Resources Resources
Obligations Obligations
Future benefits Future benefits
Expenses Expenses

Loans by finance companies, banks and credit unions is classified as___________?

1 Mark(s)

Your Answer:

Consumer credit loans Consumer credit loans
Dollar bonds Dollar bonds
Eurodollar market deposits Eurodollar market deposits
Euro bonds Euro bonds

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 suppliers, funds consumers, foreign and government intervening intermediaries are classified as participants of ____________?

1 Mark(s)

Your Answer:

financial markets financial markets
setting interest arte setting interest arte
setting compounding rate setting compounding rate
setting savings rate setting savings rate

O. XXXIV, R. 3, of C.P.C. deals with __________________ decree in foreclosure suit?

1 Mark(s)

Your Answer:

Preliminary Preliminary
Final Final
Both A and B Both A and B
None of the these None of the these

Section 5, Sub-section 2 provided exception for___________________?

1 Mark(s)

Your Answer:

Trial of chile with adults Trial of chile with adults
Trial of child with child Trial of child with child
Both (a) and (b) Both (a) and (b)
None of above None of above

According section 15, of C.P.C. every suit shall be instituted in the Court of__________________?

1 Mark(s)

Your Answer:

Lowest grade competent to try it Lowest grade competent to try it
Highest grade competent to try it Highest grade competent to try it
Both (a) and (b) Both (a) and (b)
None of the these None of the these

Temporary injunctions can be granted by Court ?

1 Mark(s)

Your Answer:

At early stage of the suit At early stage of the suit
At any stage of the case At any stage of the case
At the end of a case At the end of a case
Non of These Non of These

A credit balance in cash book indicates?

1 Mark(s)

Your Answer:

Bank balance Bank balance
Cash at bank Cash at bank
Bank overdraft Bank overdraft
Bank underdraft Bank underdraft

The thin trading of municipal bonds in secondary markets is because of ___________?

1 Mark(s)

Your Answer:

excess of information excess of information
lack of information lack of information
frequent information frequent information
infrequent information infrequent information

Order________ to________ of the Executive Orders on Parole, 1934 deals with sickness?

1 Mark(s)

Your Answer:

42 to 44 42 to 44
43 to 45 43 to 45
45 to 48 45 to 48
None of above None of above

In operating income strategic analysis, a component which measures the change in operating income attributed to the change in output quantity is classified as ________?

1 Mark(s)

Your Answer:

internal process component internal process component
growth component growth component
price recovery component price recovery component
productivity component productivity component

If the moveable property of a suit is subject to natural and speedy decay the Court can pass interlocutory order for its sale__________________?

1 Mark(s)

Your Answer:

Upon application of any party Upon application of any party
Upon its own observation Upon its own observation
Upon Court officer direction Upon Court officer direction
None of the these None of the these

Family Courts Act, 1964 contains ________________ sections?

1 Mark(s)

Your Answer:

26 26
28 28
30 30
None of the above None of the above

Cost of money is affected by factors which includes______________?

1 Mark(s)

Your Answer:

Production opportunities Production opportunities
Risk Risk
All of above All of above
Inflation Inflation

The money market where securities are issued by governments to obtain funds for short term is classified as ___________?

1 Mark(s)

Your Answer:

money market instruments money market instruments
capital market instruments capital market instruments
counter instruments counter instruments
long term instruments long term instruments

The cost which is excluded from inventoriable costs in variable costing method is called _________?

1 Mark(s)

Your Answer:

variable factory overheads variable factory overheads
fixed manufacturing cost fixed manufacturing cost
variable manufacturing costs variable manufacturing costs
fixed factory overheads fixed factory overheads

The difference of current assets and the working capital is equal to __________?

1 Mark(s)

Your Answer:

current liabilities current liabilities
long-term liabilities long-term liabilities
residual assets value residual assets value
net residual income net residual income

If an actual indirect cost incurred is $25000 and the indirect cost allocated is $23000, then the over allocated indirect cost would be ________?

1 Mark(s)

Your Answer:

$48,000 $48,000
−$2000 −$2000
$2,000 $2,000
−$48000 −$48000

T-shirt City uses a periodic inventory system. During the first year of operations, the company made four purchases of a particular product. Each purchase was for 500 units and the prices paid were $9 per unit in the first purchase, $10 per unit in the second purchase, $12 per unit in the third purchase, and $13 per unit in the fourth purchase. At the year-end, 650 of these units remained unsold. Compute the cost of goods sold under the FIFO method and LIFO method, respectively.

1 Mark(s)

Your Answer:

$16,000 (FIFO) and $13,700 (LIFO) $16,000 (FIFO) and $13,700 (LIFO)
$13,700 (FIFO) and $16,000 (LIFO) $13,700 (FIFO) and $16,000 (LIFO)
$8,300 (FIFO) and $6,000 (LIFO) $8,300 (FIFO) and $6,000 (LIFO)
None of these None of these

Any person who causes damage, injury, danger, alarm or mischief in any street or public place shall be punished with fine which may extend to_________________?

1 Mark(s)

Your Answer:

5,000 5,000
10,000 10,000
1,00,000 1,00,000
None of the above None of the above

Qualification of Deputy Chairman of NAB are provided in section 7_____ of the National Accountability Ordinance, 1999?

1 Mark(s)

Your Answer:

(a) (a)
(aa) (aa)
(b) (b)
All of above All of above

If an unexplained variation is 350050 and the total variation is 700505, then coefficient of determination would be ____________?

1 Mark(s)

Your Answer:

3 3
0.5003 0.5003
0.7003 0.7003
2 2

The amount deposited by the accused with the NAB shall be transfer to___________________?

1 Mark(s)

Your Answer:

Chairman NAB Chairman NAB
State treasury State treasury
Concerned affected department Concerned affected department
None of above None of above

Chairperson of Islamabad District Public Safety Commission shall be elected by the _________________?

1 Mark(s)

Your Answer:

Member of Islamabad District Public Safety Commission
Members of Local Government Members of Local Government
Members of National Assembly Members of National Assembly
None of the above None of the above

The normal costing and standard costing methods are used in decisions such as ___________?

1 Mark(s)

Your Answer:

investment decisions investment decisions
pricing decisions pricing decisions
product mix decisions product mix decisions
Both B and C Both B and C

Opium is __________ type of poison?

1 Mark(s)

Your Answer:

Somiferous Somiferous
Feeble Feeble
Normal Normal
None of above None of above

If the production is greater than sales, then operating income under absorption costing is _________?

1 Mark(s)

Your Answer:

higher income higher income
zero dividends zero dividends
negative income value negative income value
lower income lower income

The calculation of product cost, gathering information for planning and analyzing information for decisions making are the features of ________?

1 Mark(s)

Your Answer:

information accounting information accounting
cost accounting cost accounting
analyzing accounts analyzing accounts
marketing costs marketing costs

A decrease in provision for doubtful debts would result in ______?

1 Mark(s)

Your Answer:

A decrease in net profit A decrease in net profit
An increase in net profit An increase in net profit
An increase in net liabilities An increase in net liabilities
None of these None of these

The type of market in which securities with less than one year maturity are traded, is classified as ___________?

1 Mark(s)

Your Answer:

money market money market
capital market capital market
transaction market transaction market
global market global market

The face of human body consist _____________ boxes?

1 Mark(s)

Your Answer:

12 12
13 13
14 14
None of above None of above

Section___________ of the Family Courts Act deals with intimation to defendants?

1 Mark(s)

Your Answer:

8 8
8A 8A
9 9
None of the above None of the above

Which one of the following is the main advantage of quantitative method?

1 Mark(s)

Your Answer:

non expression non expression
non constant non constant
objective objective
non objective non objective

Petition of habeas corpus can be made before______________?

1 Mark(s)

Your Answer:

Court of Session Court of Session
High Court High Court
Both A and B Both A and B
None of above None of above

As compared to US certificate of deposit, the interest rate paid on the Eurodollar certificate of deposits is ____________?

1 Mark(s)

Your Answer:

higher than other one higher than other one
lower than other one lower than other one
contraction than other one contraction than other one
expansionary than other one expansionary than other one

Value generally promises to pay at maturity date and a firm borrows is considered as bond’s__________?

1 Mark(s)

Your Answer:

Bond value Bond value
Per value Per value
State value State value
Par value Par value

Modes of additional evidence is provided in_______________?

1 Mark(s)

Your Answer:

O. XLI, Rule 27, of C.P.C. O. XLI, Rule 27, of C.P.C.
O. XLI, Rule 28, of C.P.C. O. XLI, Rule 28, of C.P.C.
O. XLI, Rule 29, of C.P.C. O. XLI, Rule 29, of C.P.C.
None of the these None of the these

Where a judge vacated office after pronouncing judgment but without signing decree the decree may be signed by _____________________ as provided by O. XX, R. 8?

1 Mark(s)

Your Answer:

Court Officer Court Officer
The successor of decree passing judge The successor of decree passing judge
District Judge District Judge
None of the these None of the these

The compensation paid by the borrower of fund to lender, from the borrower point of the cost of borrowing fund is called?

1 Mark(s)

Your Answer:

Interest Rate Interest Rate
Required rate of return Required rate of return
Nominal interest rate Nominal interest rate
All of the above All of the above

The numerator of the fixed manufacturing cost rate is ___________?

1 Mark(s)

Your Answer:

variable manufacturing cost variable manufacturing cost
budgeted fixed manufacturing cost budgeted fixed manufacturing cost
adjusted manufacturing cost adjusted manufacturing cost
unadjusted labor cost unadjusted labor cost

The price variance for direct manufacturing labor is referred as ___________?

1 Mark(s)

Your Answer:

direct variance direct variance
rate variance rate variance
labor variance labor variance
manufacturing variance manufacturing variance

Unclassed suit means a suit which is neither_______________?

1 Mark(s)

Your Answer:

A small cause A small cause
A land suit A land suit
Both (a) and (b) Both (a) and (b)
None of above None of above

The treasury bills are issued on __________?

1 Mark(s)

Your Answer:

treasury basis treasury basis
corporate basis corporate basis
premium basis premium basis
discount basis discount basis

A company must eliminate all those activities that do not add value to all the products or services in planning of ___________?

1 Mark(s)

Your Answer:

variable overhead cost variable overhead cost
fixed overhead cost fixed overhead cost
fixed batch cost fixed batch cost
variable batch cost variable batch cost

The purpose of studying the “hukm-shari” the conceptual part of Islamic PAPER understand

1 Mark(s)

Your Answer:

ethics ethics
law law
traditions traditions
morality morality

Autopsis are performed on exhumed bodies in________________?

1 Mark(s)

Your Answer:

Civil Cases Civil Cases
Criminal Cases Criminal Cases
Both A and B Both A and B
None of above None of above

In an individual stock, relevant risk is classified as___________?

1 Mark(s)

Your Answer:

Alpha coefficient Alpha coefficient
Beta coefficient Beta coefficient
Stand-alone coefficient Stand-alone coefficient
Relevant coefficient Relevant coefficient

Quick Ratio is also known as_________?

1 Mark(s)

Your Answer:

Current Ratio Current Ratio
Acid-test Ratio Acid-test Ratio
Cash Ratio Cash Ratio
None of the given options None of the given options

National Accountability Ordinance, came into force from_______________?

1 Mark(s)

Your Answer:

January, 1984 January, 1984
January, 1985 January, 1985
January, 1986 January, 1986
None of above None of above

Section 27, of the National Accountability Ordinance, 1999 deals with_________________?

1 Mark(s)

Your Answer:

Power to fine Power to fine
Power to seek assistance Power to seek assistance
Both A and B Both A and B
None of above None of above

Article ________ of the Police Order, 2002 deals with qualification of expert ?

1 Mark(s)

Your Answer:

13(1) 13(1)
13(2) 13(2)
14(1) 14(1)
14(2) 14(2)

Section _________ of the Family Courts Act, 1964 deals with establishment of Family Courts ?

1 Mark(s)

Your Answer:

2 2
3 3
3A 3A
None of the above None of the above

Support department cost allocation method which makes no difference between variable and fixed costs is classified as ___________?

1 Mark(s)

Your Answer:

sales mix allocation method sales mix allocation method
dual-rate cost-allocation method dual-rate cost-allocation method
single rate cost allocation method single rate cost allocation method
quantity variance allocation method quantity variance allocation method

Order XX, of C.P.C. contains _______________ Rules?

1 Mark(s)

Your Answer:

15, 15,
20, 20,
25, 25,
None of the these None of the these

If the contribution margin per unit is $5000, the selling price is $1500 and the variable manufacturing cost per unit is $1200, then per unit cost of marketing will be ___________?

1 Mark(s)

Your Answer:

$4,200 $4,200
$2,300 $2,300
$7,700 $7,700
$6,700 $6,700

Section 5 of C.P.C deals with application of C.P.C to __________________?

1 Mark(s)

Your Answer:

Family Courts Family Courts
Criminal Courts Criminal Courts
Revenue Courts Revenue Courts
None of the these None of the these

Benefits of preparing Bank Reconciliation Statement includes___________?

1 Mark(s)

Your Answer:

It bring out any errors committed in preparation of Cash book / Bank Pass Book
Highlights under delay in clearance of cheques deposited but not credited
Help know actual bank balance Help know actual bank balance
All the three All the three

Recent developments have made much of a company‘s inventory obsolete. This obsolete inventory should be?

1 Mark(s)

Your Answer:

Written down to zero or its scrap value Written down to zero or its scrap value
Shown in the Balance Sheet at its replacement cost
Shown in the Balance Sheet at cost, but classified as a non-current asset
Carried in the accounting records at cost until it is sold

The first step in accounting process is___________?

1 Mark(s)

Your Answer:

Recording the transaction Recording the transaction
Identifying the transaction Identifying the transaction
Posting the transaction Posting the transaction
Preparing the source documents Preparing the source documents

Communication is the process of ________ and ______________ messages.

1 Mark(s)

Your Answer:

Transmitting, Receiving Transmitting, Receiving
Reading, Writing Reading, Writing
Pulling, pushing Pulling, pushing
Obeying, disobeying Obeying, disobeying

The cost computed by dividing total manufacturing cost and total manufactured units is known as ____________?

1 Mark(s)

Your Answer:

per unit cost per unit cost
total cost total cost
total indirect cost total indirect cost
total effective cost total effective cost

If the number of employees who left the job are 40, the total number of employees are 200, then the employee turnover ratio will be __________?

1 Mark(s)

Your Answer:

0.6 0.6
0.5 0.5
0.2 0.2
0.7 0.7

Evaluating Your Answers

CPA Exam Mock Test 6 : Question 1 of 73