Solved Past Papers Mcqs of Accountant Local Government for the preparation of NTS, PPSC, SPSC, BPSC, KPSC, FPSC, OTS and other academic entry tests and jobs tests.
61. Conversion cost is
A) Material Cost + Overhead Cost
B) Direct Labour + Material Cost
C) Direct Labour – Material Cost
D) Labour Cost + Overhead Cost
62. Process Costing is relevant to
A) Cement industry
B) Job Order cost-oriented Projects
C) Banking industry
D) None of the above
63. A partnership, in today’s Pakistan, under the current law can have the following number of partners
A) 50
B) 20
C) 100
D) 70
64. 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
D) Joint venture
65. Sources of funds can be increased by
A) Describing selling prices
B) Increasing expenditure
C) By opting for efficient processes
D) None of above
66. Books of original entry are called
A) Ledger
B) Journal
C) Worksheets
D) None of these
67. For preparing balance sheets expenses are shown as part of
A) Liability
B) Equities
C) Assets
D) None of these
68. Unpaid and unrecorded expenses are called
A) Prepaid expenses
B) Accrued expenses
C) Additional expenses
D) None of these
69. Amount, cash or other assets removed from business by owner is
A) Capital
B) Drawings
C) Assets
D) None of these
70. Under the diminishing balance method depreciation amount is
A) Payment
B) Receipt
C) Expenditure
D) None of these
71. Return on investment is computed
A) Investment / Profit x 100
B) (Profit / Investment) x 100
C) (Profit — dividend) / investment x 100
D) None of these
72. Sugar used in a sugarcane company is
A) Variable cost
B) Semi Variable Cost
C) Fixed cost
D) Step fixed cost
73. An auditor is liable under the following circumstances
A) Third-Party Liabilities
B) Fraud perpetrated in highly sophisticated circumstances
C) Both of the above
D) None of these
74. Conversion Cost is calculated as under
A) Labour plus Materials
B) Labour plus overheads
C) Labour minus overhead
D) None of these
75. Accumulated loss of a company is shown in the balance sheet as
A) Liability
B) Asset
C) As a footnote to balance sheet
D) None of these
76. Under the Companies Ordinance 1984, disclosure of financial information is legally required for listed companies under
A) Schedule 6
B) Schedule 5
C) Schedule 4
D) Schedule 8
77. Trading loss occurs when
A) Revenues exceed the matching relevant
B) Revenue and matching costs are equal to costs of each other
C) When relevant matching cost exceeds revenues
D) None of these
78. Accounting requirements governing NGOs prescribed in
A) Partnership Act 1932
B) Cooperative Societies legislation
C) Companies Ordinance 1984
D) None of these
79. Worksheet is equivalent to
A) Balance sheet
B) Income statement
C) Trial Balance
D) None of these
80. The following represent tangible assets and are shown in the balance sheet as
A) People
B) Expenses
C) Revenue
D) Goodwill
