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  #1  
Old Friday, August 29, 2014
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Default Let Us Prepare for test of Senior Auditor announced By FPSC..

Dear Friends,

Let us prepare for the test. All of you are requested to share/add your knowledge regarding expected MCQS in the test.

Those who have qualified in last batch should also guide us and those who have qualified similar test in any Organization should also share his expertise...

I hope and expect all of you to share material for the test...
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Old Saturday, August 30, 2014
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Default Some Material for Preparation

Net realizable value is ____ minus the cost of making the sale.
sales price
The inventory account is a ______ account for the inventory subsidiary ledger.
controlling
We use the _____ to decide how much of the cost of the goods available for sale is deducted from sales and how much is carried forward as inventory and matched against future sales.
matching principle
The four inventory and COGS costing methods are ____, ____, ____, and _____.
specific identification, FIFO, LIFO, weighted average
____ assumes costs flow in the order incurred.
FIFO
____ assumes costs flow in the reverse order incurred.
LIFO
____ assumes costs flow at an average of the costs available.
Weighted average
Beginning inventory plus net purchases equals____.
merchandise available for sale
Cost of good sold plus ____ equal cost of goods available for sale.
ending inventory
When each item in inventory can be identified with a specific purchase and invoice, we can use ____ to assign costs.
specific identification
Specific identification is also called ____.
specific invoice inventory pricing
Three key variables determine the dollar value of ening inventory: ___, ____, and ____.
inventory quantity, costs of inventory, cost flow assumptions
Weighted average cost per unit at the time of each sales equals the _____ divided by the units available.
cost of goods available for sale
When purchase costs regularly rise ____ assigns the lowest amount to cost of goods sold-yielding the highest gross profit and net income.
FIFO
When purchase costs regularly rise ____ assigns the highest amount to cost of goods sold-yielding the lowest gross profit and net income.
LIFO
When purchase costs regularly rise ____ yields results between FIFO and LIFO.
weighted average
Managers prefer ____ when costs are rising and incentives exist to report higher income for reasons such as bonus plans, job security and reputation.
LIFO
When costs regularly decline ____ gives the highest cost of goods sold.
FIFO
When costs regularly decline ____ gives the lowest cost of goods sold.
LIFO
____ assigns an amount to inventory on the balance sheet that approximates its curren cost; it also mimics the actual flow of goods for most businesses.
FIFO
____ assigns an amount to cost of goods sold on the income statement that approximates its current cost; it also better matches current costs with revenues in computing gross profit.
LIFO
____ tends to smooth out erratic changes in costs.
Weighted average
When LIFO is used for tax reporting the IRS requires that it also be used in financial statements. This is called the ____.
LIFO conformity rule
Accounting principles require that inventory be recorded at the market value (cost) of replacing inventory when market value is ____ than cost.
lower
Inventory must be adjusted ____ when market is less than cost.
downward
If LCM is applied to items in inventory the ____ is debited and the ____ is credited.
cost of goods sold, Merchandise Inventory
The ____ prescribes the use of the less optimistic amount when more than one estimate of the amount to be received or paid exists and these estimates are about equally likely.
conservatism constraint
Understating inventory ____ cost of goods sold.
overstates
If beginning inventory is understated, the cost of goods sold is ____.
understated
A lower cost of goods sold yields a ____ income.
higher
Inventory turnover equals cost of goods sold divided by ____.
average inventory
A ____ inventory turnover ratio compared to that of competitors suggests inefficient use of assets.
low
Days' sales in inventory equals _____ divided by _____, multiplied by 365.
Ending inventory, cost of goods sold
In the retail inventory method, ending inventory at retail is multiplied by the _____ to reach estimated ending inventory at cost.
cost-to-retail ratio
The _____ method estimates the cost of ending inventory by applying the gross profit ratio to net sales (at retail).
gross profit
The ____ method uses the historical relation between the cost of goods sold and net sales to estimate the proportion of cost of goods sold making up current sales.
gross profit
In the gross profit method the ____ is subtracted from _____ to estimate the ending inventory at cost.
cost of goods sold, cost of goods available for sale
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  #3  
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Test will be Mcqs type Not Fill in the blank
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Old Saturday, August 30, 2014
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Default

Quote:
Originally Posted by sincer khan View Post
Test will be Mcqs type Not Fill in the blank
Khan Sb it is material for knowledge that will help us prepare for the test...
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Default Syllabus for Senior Auditor

Part-I 20%
Vocabulary, Grammar Usage,

Part-II 80%
 Accounting Principles & Procedures,
 Scrutiny of Record for Audit Purpose,
 Journal, ledger & Cash Book,
 Annual Budget,
 Adjustment & Depreciation,
 Financial Planning & Cost Accounting,
 Head of Accounts, Re-appropriation of Accounts
and Supplementary Grant,
 Settlement of Audit Objections
 Preparation of Pension Documents.
 Public Procurement Rules, 2004

All friends are requested to share MCQs on these topics/chapters...
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Default

Dear I know It.......
But please Tell me That there is any specific book available for The sad Post..........
Because it will Difficult For us To Study These Topic.
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Default

(1) Double entry book-keeping was fathered by:
(a) F.W.Taylor
(b) Henry Fayol
(c) Lucas Pacioli.
(2) Funds Flow Statement and sources and application statement are:’
(a) Synonymous*
(b) Antagonistic
(c) None of these.
(3) Depreciation in spirit is similar to:
(a) Depletion
(b) Amortization*
(c) Depression.
4) Balance Sheet is always prepared:
(a) for the year ended.
(b) As on a specified date.*
(c) None of these.
(5) In Insurance, the following Profit and Loss Accounts are prepared:
(a) Separate for Fire, Marine, and Accidents etc.
(b) Consolidated for Fire, Marine, and Accidents etc.(c) None of these.
(6) Partners in Pakistan can today be fixed at the following numbers:
(a) 20*
(b) 50
(c) 75.
(7) Flexible budget is a budget with the following features:
(a) Changes with volume of production.
(b) Changes with variable expenses
(c) Changes in Direct material.
(8) Break Even can be calculated as under:
(a) ______VC_______
FC- TR TC
(b) FC
I- VC TR(c) None of these.
(9) Quick Ratio can be computed as under:
(a) Quick . Assets/Quick Liabilities
(b) Quick . Liabilities Current Assets
(c) Current Assets/ Current Liabilities
(10) In straight line method of depreciation, the written down value of a fixed asset will be at the end of the life of the asset as under:
(a) Rupee one
(b) Rupee zero*(c) None of these.
(11) Sales budget must be prepared:
(a) Independently
(b) Depending on production capacity
(c) Based on Sales forecasts of market.*
(12) Consolidation of subsidiary accounts in the balance sheet of a unlisted Holding company is at present in Pakistan:
(a) Compulsory
(b) Voluntary
(c) Required.*
(13) Retained earning is synonymous to:
(a) Accumulated profit and loss account
(b) Profit for the year
(c) None of these.
(14) The requirements of an audit report for a Banking Company in Pakistan is under:
(a) Under the Banking Companies Ordinance, 1962.
(b) Under the Companies Ordinance, 1984.
(c) Under (a) and (b) above.
(15) Deferred Taxation is:
(a) Fixed asset
(b) Fixed liabilities
(c) Part of Owners Equity.
(16) Investment Corporation of Pakistan follows:
(a) Open-end mutual funds
(b) Closed-end mutual funds
(c) None of these.
(17) Directors Report is —- in respect of financial report constituent.
(a) Mandatory for a limited Company
(b) Voluntary for a limited Company
(c) None of these.
(18) Every limited Company in Pakistan is required by law to include the following along with financial reports:
(a) Ratio Analysis
(b) Chairman’s Review
(c) None of these.
(19) Cash budget excludes the following:
(a) Non-Cash items
(b) Cash items
(c) Purchase on Credit items.
(20) NGOs are legally required to:
(a) Prepare accounts in a prescribed manner under the law.(b) Prepare accounts as desired by donors.
(c) None of these.
1. Fixed Cost:
a. Changes with production
b. Never changes even if production capacity is doubled
c. None of the above
2. Conversion cost is:
a. Material Cost + Overhead Cost
b. Direct Labour + Material Cost
c. Labour Cost + Overhead Cost
3. Process Costing is relevant to:
a. Cement industry
b. Job Order cost oriented Projects
c. None of the above
4. Operating Profit is:
a. Profit after deducting financial costs
b. Profit after deducting taxes
c. Profit after deducting normal operating expenses including depreciation
5. A good Cost Accounting System is:
a. If it computes estimated cost only
b. If it cannot be reconciled with financial accounts
c. If it enables management to increase productivity and rationalize cost structure
6. Verification includes:
a. Checking Vouchers
b. Examining audit report
c. None of the above
7. Stratified audit sample means:
a. Randomly selected items for audit
b. Purposively selected items for audit
c. Items carefully selected from each group
8. Internal Control is totally synonymous with:
a. Internal check
b. Internal audit
c. None of above
9. Audit of a bank is generally conducted through:
a. Routine checking
b. Couching
c. Balance sheet audit
10. An auditor is liable for his annual audit of accounts o:
a. Creditors
b. Bankers
c. Owners
11. Income Tax is levied on:
a. Agricultural Income
b. Presumptive Income
c. None of above
12. If a firm has paid super-tax, its partners may follow any one of the following behaviours:
a. No need to pay income tax, even if the income exceeds the taxable limit.
b. Pay income tax, even if the income does not exceed the taxable income.
c. Pay income tax as required under the law.
13. A resident multinational company need not:
a. Pay income tax, if it s caused under Double Taxation agreement.
b. If it is not enjoying tax exemption under the Income Tax Ordinance, 1979 (Second Schedule).
c. None of above
14. Income Tax rates are the same for:
a. Limited Companies
b. Banking Companies
c. None of above
15. Super Tax on companies is:
a. In vogue in Pakistan
b. Not in vogue in Pakistan
c. None of above
16. Current Ratio is calculated as:
a. Fixed Assets/Current Liabilities
b. Current Liabilities/Current Assets
c. Current Assets/Current Liabilities
17. Short-term loan can be described as:
a. If the period is three years
b. If the period is less than one year
c. If the period is over one year
18. A partnership, in today’s Pakistan, under the current law can have the following number of partners:
a. 50
b. 20
c. 100
19. Combination can be best described as:
a. Restructuring of Capital of a Company
b. Reduction of Capital of a Company
c. Amalgamation of two different types of businesses
20. Sources of funds can be increased by:
a. Describing selling prices
b. Increasing expenditure
c. None of above
(1) Books of original entry are called:
(a) Ledger
(b) Work sheets
(c) Journal
(d) None of these
(2) For preparing balance sheets prepaid expenses are shown as part of:
(a) Liability
(b) Equities
(c) Assets
(d) None of these
(3) Unpaid and unrecorded expenses are called:
(a) Prepaid expenses
(b) Accrued expenses
(c) Additional expenses
(d) None of these
(4) Amount, cash, or other assets removed from business by owner is:
(a) Capital
(b) Drawings
(c) Assets
(d) None of these
(5) Under the diminishing balance method, depreciation amount is:
(a) Payment
(b) Receipt
(c) Expenditure
(d) None of these
(6) Users of accounting information include:
(a) The tax authorities
(b) Investors
(c) Creditors
(d) All of these
(7) The business form(s) in which the owner(s) is (are) personally liable is (are) the:
(a) Partnership only
(b) Proprietorship
(c) Corporation only
(d) Partnership and proprietorship*
(e) None of these
(8) The investment of personal assets by the owner:
(a) Increases total assets and increases owner’s equity
(b) Increases total assets only
(c) Has no effect on assets but increases owner’s equity
(d) Increase assets and liabilities
(e) None of these
(9) All of the following are forms of organizations except:
(a) Proprietorship
(b) Corporation
(c) Retailer
(d) Partnership
(e) None of these
(10) Economic resources of a business that are expected to be of benefit in the future are referred to as:
(a) Liabilities
(b) Owner’s equity
(c) Withdrawals
(d) Assets
(e) None of these
(11) An owner investment of land into the business would:
(a) Decrease withdrawals
(b) Increase liabilities
(c) Increase owner’s equity
(d) Decrease assets
(e) None of these
(12) A cash purchase of supplies would:
(a) Decrease owner’s equity
(b) Increase liabilities
(c) Have no effect on total assets
(d) None of these
(13) An owner investment of each into the business would:
(a) Increase assets
(b) Decrease liabilities
(c) Increase withdrawals
(d) Decrease owner’s equity
(e) None of these
(14) The payment of rent each month for office space would:
(a) Decrease total assets
(b) Increase liabilities
(c) Increase owner’s equity
(d) None of these
(15) Real accounts are related to:
(a) Assets
(b) Expenses and incomes
(c) Customers and Creditors etc.
(d) None of these
(16) Which one of the following accounts would usually have a debit balance?
(a) Cash
(b) Creditors
(c) Accounts payable
(d) Salaries Expenses
(e) None of these
(17) Quick assets include which of the following?
(a) Cash
(b) Accounts Receivable
(c) Inventories
(d) Only (a) and (b)
(e) None of these
(18) Net income plus operating expenses is equal to:
(a) Net sales
(b) Cost of goods available for sale
(c) Cost of goods sold
(d) Gross profit
(e) None of these
(19) The maximum number of partners in Pakistan can be fixed at the following:
(a) 20
(b) 50
(c) 75
(d) None of these
(20) Balance sheet is always prepared:
(a) For the year ended
(b) As on a specific date
(c) None of these
(1) The measureable value of an alternative use of resources is referred to as:
(a) An opportunity cost
(b) An imputed cost
(c) A different cost
(d) A sunk cost
(e) None of these
(2) A quantitative expression of management objectives is an:
(a) Organizational chart
(b)Management chart
(c) Budget
(d) Procedural chart
(e) None of these
(3) A cost center is:
(a) A unit of production in relation to which costs are ascertained
(b) A location which is responsible for controlling direct costs
(c) Part of the factory overhead system by which costs are gathered
(d) Any location or department which incurs cost
(e) None of these
(4) At break-even point of 400 units sold the variable costs were Rs. 400 and the fixed costs were Rs.200. What will be the 401 units sold contributing to profit before income tax?
(a) Rs. 0.00
(b) Rs. 0.50
(c) Rs. 1.00
(d) Rs. 1.50
(e) None of these
(5) In considering a special order situation that will enable a company to make use of currently idle capacity, which of the following cost will be irrelevant:
(a) Materials
(b) Depreciation
(c) Direct labour
(d) Variable factory overhead
(e) None of these
(6) A fixed cost:
(a) May change in total when such change is not related to changes in production
(b) Will not change in total because it is not related to changes in production
(c) Is constant per unit for each unit of change in production
(d) May change in total, depending on production with the relevant range
(e) None of these
(7) Completion of a job is result in:
(a) DR finished goods …….. CR WIP
(b) DR Cost of goods ……… CR finished goods
(c) DR WIP ……………..….….. CR FOH control
(d) DR FOH control …….….. CR FOH applied
(e) None of these
(8) Operating cost in often named as:
(a) Manufacturing cost plus commercial expenses
(b) Prime cost plus factory overheads
(c) Direct material plus direct labour
(d) Selling plus administrative expenses
(e) None of these
(9) Expenses such as rent and depreciation of a building are shared by several departments these are:
(a) Indirect expenses
(b) Direct expenses
(c) Joint expenses
(d) All of the above
(e) None of these
(10) If under applied FOH is closed to cost of goods sold, the journal entry is:
(a) DR Cost of goods sold …….. CR FOH control
(b) DR FOH control ……..……….. CR Cost of goods sold
(c) DR FOH control ……..……….. CR Profit % loss account
(d) None of these
(11) Re-order quantity …… 3600 units
Maximum consumption …… 900 units per week
Minimum comsumption …….300 units per week
Re-order period …………….….5 weeks
Based on this data Re-order level is:
(a) 4500 units
(b) 3900 units
(c) 1200 units
(d) 400 units
(e) None of these
(12) The time lag between indenting and receiving material is called:
(a) Lead time
(b) Idle time
(c) Stock out time
(d) None of these
(13) A credit balance remaining in FOH Control account is called:
(a) Over-applied overhead
(b) Under-applied overhead
(c) Actual overhead
(d) None of these
(14) Direct material cost plus direct labour cost is called:
(a) Prime cost
(b) Conversion cost
(c) Product cost
(d) All of these
(e) None of these
(15) Productivity means:
(a) The ability to produce
(b) All units produced
(c) Good units produced
(d) None of these
(16) A segment of the business that generates both revenue and cost is called:
(a) Profit Center
(b) Cost Center
(c) Cost driver
(d) All of these
(e) None of these
(2) Preparation of final financial reports is governed in Pakistan under:
(a) No law
(b) Companies Ordinance 1984
(c) None of these
(3) Depreciation is based on:
(a) Economic life of asset
(b) Declared life of asset by supplier
(c) Normal life of asset
(d) None of these
(4) Inventory turnover is calculated as under:
(a)*Cost of Goods sold/Closing Inventory
(b) Gross profit/Closing Inventory
(c) Sales/Opening Inventory
(d) None of these
(5) There is a difference between:
(a) Worksheet and Balance Sheet
(b) Worksheet and profit and loss account
(c) Worksheet as combination of results of profits and financial positions
(d) None of these
(6) Deferred Revenue is:
(a) Liability
(b) Asset
(c) None of these
(7) Preparation of annual report of a firm is governed under:
(a) Partnership Act 1932
(b) Under partnership Deed
(c) None of these
(8) Deferred Taxation amount be treated as:
(a) Foot note
(b) An item in the Balance Sheet on asset side
(c) None of these
(9) Return of Equity will be calculated as under:
(a) Operating Profit x 100/Equity
(b) Net profit x 100/Paid up Capital only
(c) None of these
(10) Current maturity of long term loan is:
(a) Current Liability
(b) Long Term Liability
(c) None of these
(2) Process Cost is very much applicable in:
(a) Construction Industry
(b) Pharmaceutical Industry
(c) Air line company
(d) None of these
(3) The latest computation of variances of manufacturing overheads is in one the following ways:
(a) Two variance approaches
(b) Three variance approaches
(c) Four variance approaches
(d) None of these
(4) Random sampling in auditing means:
(a) Selection through convenience sampling
(b) Selection through scientific sampling approach
(c) None of these
(5) Expenditure incurred in procuring machinery is:
(a) An admissible expenditure for tax purposes
(b) No admissible for tax purposes
(c) None of these
(6) Increase in income constitutes:
(a) Inflows
(b) Outflows
(c) None of these
(7) M & A stands for:
(a) Mergers & Analysis
(b) Mergers & Acquisitions
(c) Mergers & Allocation
(d) None of these
(8) An endowment insurance policy can be taken in respect of:
(a) Fire insurance
(b) Accident insurance
(c) Life insurance
(d) None of these
(9) Audit and special audit are the same:
(a) In Insurance Company
(b) In Banking Company
(c) None of these
(10) Acid test is the same as:
(a) Quick test
(b) Liquid test
(c) None of these
(1) Acid Test Ratio is calculated as under:
(a) Current Assets/Current Liabilities
(b) Fixed Assets/Current Liabilities
(c) Liquid Assets/Current Liabilities
(d) None of these
(2) Deferred cost is a:
(a) Liability
(b)Asset
(c) None of these
(3) Work Sheet is:
(a) Balance Sheet
(b) Fund Flows Statement
(c) A combination of Profit and Loss Account and Balance Sheet items
(d) None of these
(4) Banks, for the preparation of financial statements, are governed under:
(a) Banking Companies Ordinance, 1962
(b) State Bank of Pakistan Act
(c) None of these
(5) Return on investment is computed:
(a) Investment/Profit x 100
(b) Profit x 100/Investment
(c) None of these
(1) Rent of the premises constitutes variable expenses for cost allocation:
(a) True
(b) False(2) Sugar used in a sugarcane company is:
(a) Variable cost
(b) Fixed cost
(c) None of these
(3) An auditor is liable under the following circumstances:
(a) Third Party Liabilities
(b) Fraud perpetrated in highly sophisticated circumstances
(c) None of these
(4) Agricultural income is taxable under the Income Tax Laws of Pakistan:
(a) True
(b) False
(5) Principal and markup payment within one year constitutes long term liability for disclosure in the balance sheet of a company.
(a) True
(b) False
(6) Ordinarily one can have the following partners in a partnership in Pakistan under the Partnership Act 1932.
(a) 10
(b) 20
(c) 30
(d) None of these
(7) Working Capital finance can be termed as “Running Finance” in a limited company.
(a) True
(b) False
(8) Income from Capital gains arising out of trading on a stock strange in Pakistan is taxable these days:
(a) True
(b) False
(9) Conversion Cost is calculated as under:
(a) Labour Plus Materials
(b) Labour plus overheads
(c) None of these
(10) Current Ratio can be calculated as under:
(a) Current Liabilities/Current Assets
(b) Current Assets/Current Liabilities
(c) None of these
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Type IN Google
" Public Procurement Rules, 2004"
You Will Get It In a PDF File
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raazid is an unknown quantity at this point
Angry Test date

When is the test date i have lost my bank slip
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Raazid YOu Should Find Your bank Slip otherwise you are not eligible to appear in Test.
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