Important Senior Auditor Past Papers MCQs For the preparation of FPSC auditor test online.
Senior Auditor Past Papers MCQs
From the following which is not an adjusting entry ?
- Debit unearned revenue ,credit revenue
- Debit Insurance expense, credit prepaid insurance
- Debit cash, credit unearned revenue
- None
Purpose of depreciation is ?
- To show the previous profit
- To calculate net profit
- To reduce tax
- None
The object of making a provision for depreciation in the accounts is :
- To charge the costs of fixed assets against the profits
- To show the current market value of fixed assets
- To make cash available to replace fixed assets
- None
Deferred Taxation is :
- Fixed assets
- Fixed liabilities
- Part of owners equity
- None
The most high option price in financial planning , will lead to :
- Longer option period
- Smaller option period
- Lesser price
- None
Becoming out of date or absolute in accounting is known as?
- Amortization
- Obsolescence
- Depletion
- None
Under declining balance method depreciation is calculated on ?
- Original value
- book value
- Scrape value
- None
Definition of Salvage value is :
- Definition sale price of an asset
- Cash to be received when life of asset end
- Estimated disposal value
- None
The depreciation according to fixed installment method, the calculation on
- Balance account
- Original costs
- Scrap value
- None
The portion of the cost expires during a year is :
- Cost
- Expense
- Expenditure
- None
From following which one is an example of unearned income ?
- Cash paid to supplier
- Advance received from bank
- Advance received from customer for a purchase order place by him
- None
The purpose of adjusting entries ?
- Assign revenue to the period in which they are earned
- Help to properly measure the period's net profit / loss
- Bring assets and liability account to correct balances
- All
The requirements of an audit report for a banking company in Pakistan is :
- Under banking company ordinance 1962
- Under companies ordinance 1984
- Both
- None
What accounting term is given to the outstanding one month's rent if a business pays for only 11 month rent during a financial year
- Repayment
- Payable
- Both
- None
The effect of every adjusting entry is on :
- Income statement account only
- Balance sheet account only
- Both
- None
A manager who is responsible for only the cost of company belongs to
- Cost center
- Revenue center
- Profit center
- None
Which of the following term is used for the large number of manager subordinates and the higher level manager?
- Activity subordinate
- Broader responsibility center
- Broader sub ordinate
- None
____ should be debited when goods returned by customers.
- Sale income account
- Sales account
- Returned inward account
- None
If ___ increases will increase the capital .
- Expenses are greater than income
- Drawings
- Revenue
- None
Equity can be well defined by :
- Cash from the business
- Liability of a business
- Owner's claim on total assets
- None
The gross inflow of economic benefits are called :
- Assets
- Liabilities
- Income
- None
Having separate legal entity whose total capital can be divided into many shares are called :
- Partnership
- Sole proprietor ship
- Company
- None
The cost drivers for manufacturing overhead costs in mater budget are :
- Direct manufacturing labor hours
- Setup labor hours
- Both
- None
"An accountant should not anticipate profit , but must provide all losses" this concept is :
- Conservation concept
- Consistency concept
- Materiality concept
- None
What will be the manufacturing budget if the indirect manufacturing labor 20000, power cost is 5000, maintenance and supplies are of 10000?
- 55000
- 35000
- 15000
- None
On the preparation of trial balance which error can not be revealed ?
- Wrong totaling of account
- Compensatory errors
- Error of commission
- None
The balance in petty cash is :
- Liability
- Income
- Asset
- None
The meaning of reserve capital is :
- Part of subscribed uncalled capital
- Accumulated profit
- Part of capital reserve
- None
If the date of maturity of a bill is a holiday then bill will mature on :
- Holiday itself
- Other agreed day
- Preceding working day
- None
Which of following instrument is not a negotiable instruments?
- Bearer cheque
- Crossed cheque
- Promissory note
- none
The purpose to maintain purchase book is to record
- All credit purchases
- All cash purchases
- Purchase of goods
- None
Which of following defines right shares are the shares ?
- Issued by a newly formed company
- Legally issued to a public at large
- Offered to the existing equity shareholders
- None
A company is not allowed to raise funds by issue of shares beyond the maximum amount is :
- Issued capital
- Reserved capital
- Nominal capital
- None
Purpose of depreciation is :
- Helps to tie the cost of an asset with the benefits of its use over time
- Helps to tie the cost of an asset
- Helps to tie the sale of an asset with the benefits of its use over time
- None
cost apportionment is used for which purpose
- Distribution of various overhead items
- Distribution of various goods
- collection of various overhead items
- All
External user of accounting related to
- Investors
- both
- Debtors
- All
In financial accounting main purpose is to provide information to
- Investors and creditors
- Debtors
- Capital
- None
Bid must be submitted in
- Packages
- Installments
- Both
- None
What is the minimum response time for a bid after advertisement
- 15 days
- 12 days
- 10 days
- None
A bid should be published in how many ways?
- Electronic media
- News paper
- Both
- None
What means identify recording and communicating information
- Accounting
- Expenses
- revenue
- All
During rising price which inventory method provide lowest profit
- FIFO
- LIFO
- Both
- None
Which thing increase assets and decrease liabilities
- Payment of bank loan
- credits
- All
- None
Retained earning is a synonym of
- Cumulative net earning
- Non Cumulative net earning
- Both
- None
According to procurement rule 2004 the limit of bid amount is :
- 500000 to 30000
- 500000 to 3000000
- 5000 to 3000000
- none
Bid amount should not be exceed to :
- 5%
- 6%
- 10%
- none
According to pension rule 2016 from 25 is used for :
- File family pension
- File family package
- family pension
- none
Pension rules 2016 revise to give the pension from
- 24
- 23
- 22
- 25
___ the audit risk___ the immateriality and ___ the audit effort
- lower ,higher, lower
- low ,higher, lower
- lower ,higher, higher
- none
Budgetary control system facilitate centralized control with ?
- Decentralized Activity
- Centralized Activity
- Both
- None
Government expenditure audit is explained in front of:
- High court
- President
- both
- none
First step in accounting is to
- identify
- Record transaction
- Post in ledgers
- All
Window dressing is implied at the time of :
- safeguard the income on the behalf of share holders
- safeguard the assets on the behalf of share holders
- safeguard the capital on the behalf of share holders
- none
The auditor of company remained auditor till:
- Next year AGM
- next two years
- next five years
- none
The amount which owe subtract from owing is called :
- net worth
- net loss
- net profit
- all
An auditor should give the :
- bad view of accounts
- True and fair view of accounts
- brief view of accounts
- none
Which of following statement is not true ?
- Same work as internal auditor direction
- prevention of errors and frauds
- both
- none
Who is resemble to provide the unambiguous document :
- procurement department
- bidder
- both
- none
Qualified auditor, in different companies will give the opinion on financial statement :
- qualified opinion
- unqualified opinion
- either a or b
- none
Cash flow method of cash budget is suitable for preparing the long term estimates of :
- Cash inflow and out flows
- cash flow
- income flow
- none
Which of following is not objective of Budgetary control?
- to help in fixation
- to help in fixation of selling price
- both
- none
How many security must be submitted for bid?
- 6 %
- 3 %
- 5 %
- none
How many types of competitive bidding request are
- 3
- 4
- 5
- 6
in case of international bidding the maximum time given to submit bid documents :
- 10 days
- 20 days
- 30 days
- none
Budgetary control system Acts as a friend, philosopher and guide to the?
- Management
- Guidance
- All
- None
In developing operating budget the last step is ?
- Implementing income
- Efficient Implementation
- Implementing the decision
- None
In developing operating budget the third step is :
- Analysis of batches
- Analysis of products
- Making predictions about future
- None
In which the contract holder has the right to cell an asset at specific period for predetermining price that contract is classified as :
- Written value
- Featured contract
- Determined contract
- None
The difference between the budgeted amounts and the actual results is classified as:
- Standard deviation
- Variances
- Mean average
- None
Which cover the capital expenditure, budgeted statement of cash flows and balance sheet that part of the master budget are classified as :
- Financial budget
- Capital budget
- Cash flows budget
- None
In capital budgeting, term of bond which has great sensitivity to interest rates is
- long-term bonds
- short-term bonds
- internal term bonds
- external term bonds
Bid must be open
- Publicly
- Privately
- All
- None
In how much form the bids is written:
- Four types
- Five types
- three types
- none
Budgetary control is a system of controlling :
- Cost ascertainment
- sale price
- purchase cost
- none
Custom duties are form of ______
- Direct Taxation
- Indirect Taxation
- Non-Tax Revenue
- Govt deposits
IFAC is an abbreviation of?
- International Federation of Accountants
- International Federation of Account
- International Founder of Accountants
- None
Entities are required to comply with the following standards to operative their financial statements?
- IAS
- ISA
- IFRS
- All of these
- None of these
Depreciation arises due to what?
- Physical wear and tear of the asset
- Fall in the market value of the asset
- Fall in the value of money
- All of these
- None of these
All of the following are stockholders' equity accounts except:
- Common Stock
- Investment in Stock
- Retained Earnings
- Capital Stock
Retained earnings is classified as which type of account?
- Asset
- Liability
- Expense
- Equity
- All of these
Which of the following business entity is considered as a “legal person” in the eye of law?
- Sole trader
- Partnership
- Company
- All of the above
- None of these
Which of the following accounting principles requires businesses to record depreciation?
- The cost principle
- The matching principle
- The revenue recognition principle
- The going concern principle
- All of these
Which of the following are the tools of management accounting?
- Budgetary controls
- Marginal Costing
- Standard Costing
- All of these
- None of these
Which of the following are not the tools of management accounting?
- Funds flow statement
- Cash Flow statement
- Ratio Analysis
- Process costing
Who coined the concept of management accounting?
- R.N Anthony
- James H. Bliss
- Vint Cerf
- Thomas Edison
Managing Accounting maintains_?
- Ledger
- Journal
- Both of these
- None of these
Wealth maximization is a ________?
- Outdated concept
- Long term concept
- Temporary concept
- Short term concept
- All of these
Salaries, wages, depreciations, rents and utilities are used to calculate___?
- Operating costs
- Variable costs
- Outdoor costs
- Fixed costs
- All of these
The opinion in an auditor’s report is about attesting that the financial statement are __?
- Are in accordance with the national standards
- Are in accordance with the international standards
- Are free from errors, mistakes, or fraud
- Present fairly in all material respects
Audit Risk is the combination of_____?
- Three Risks
- Two Risks
- Four Risks
- Five risks
Audit Risk basically represents the risk that the auditor would wrongly conclude that the financial statements are?
- Free from material error whereas material is present
- Not free from material error whereas material error is not present
- Both A & B
- None of these
Inherent Risk is fundamentally?
- The residual risk after all precautionary measures have been taken
- the residual risk after proper controls are designed and implemented
- the risk inherent in auditor’s tests to detect misstatements
- None of these
Solved MCQs of FPSC Senior Auditor Past Papers pdf download with answers for your FPSC Senior Auditor (BS-16) test preparation online.
Read More: General Knowledge MCQs