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Mock Exam-1: Post: Accounts Officer & Jr. Executive Accounts. Circle Correct Answers (1 Mark For Each Correct Answer)
Mock Exam-1: Post: Accounts Officer & Jr. Executive Accounts. Circle Correct Answers (1 Mark For Each Correct Answer)
The next 3 questions refer to the following information. A Company has a standard of 1 direct
labor hour per unit at Rs12 per hour. 3,850 labor hours costing Rs 46,970 were used to produce
4,000 units.
4. Company’s labor price variance is
a) 770 F b) 770 U c) 1,030 F d) 1,030 U
5. Company’s labor quantity variance is
a) 1,830 U b) 1,830 F c) 1,800 F d) 1,800 U
6. Company’s total labor variance is
a) 770 U b) 800 U c) 1,030 F d) 1,930 F
The next 2 questions refer to the following information. The actual and standard direct labor rates
were Rs8.50 and Rs8.00, respectively. 5,500 direct labor-hours were normal capacity. The
standard quantity of hours allowed for units produced was 5,000. The standard variable overhead
per direct labor-hour is Rs5.00 and the fixed overhead rate is Rs6.00.
7. What is the controllable overhead variance if the variable manufacturing overhead costs were
24,750?
a) 2,250 U b) 250 F c) 4,750 F d) 1,350 F
8. What is the overhead volume variance if the variable manufacturing overhead costs were
24,750?
a) 2,000 U b) 2,500 F c) 3,000 U d) 3,500 F
9. Which of the following is not a benefit of using a balanced scorecard
a) It creates linkages from high-level goals to lower level employees
b) It provides measurable objectives that are not financial
c) It integrates all of the company’s goals
d) It can easily access individual performance
10. Which of the following is not a benefit of using standard costing
a) Useful in setting selling prices
b) Used as a way to place blame on managers or employees
c) Simplifies costing of inventory
d) Contributes to management control
11. In ............. costing the cost of a group of products is ascertained.
a) Process b) Job c) Batch d) Service e) Marginal
12. About 50 items are required every day for a machine. A fixed cost of ` 50 per order is
incurred for placing an order. The inventory carrying cost per item amounts to Re. 0.02 per day.
The lead period is 32 days. Compute reorder level.
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a) 1,200 items b) 1,400 items c) 1,600 items d) 1,800 items
13. If Cost of goods sold = ` 40,000; GP Margin = 20% of sales Calculate the Gross profit
margin.
a) 32,000 b) 48,000 c) 8,000 d) 10,000
14. The firms monthly cost of production is ` 1, 46,000 at an output level of 8,000 units. If it
achieves an output level of 12,000 units it will incur production cost of ` 1,94,000 cost of
production for 15,000 units is
a) 1,80,000 b) 2,00,000 c) 50,000 d) 2,30,000
15. A company produced 500 units of a product and incurred the following costs: ` Direct
materials 8,000 Direct wages 10,000 Overheads (20% fixed) 45,000 If the sales value of 500
units was ` 1,02,000, what is contribution margin ?
a) 44% b) 47% c) 53% d) 74%
Use the following data for questions 38 and 39: Budget data for the Happy Ltd. Sales (1,00,000
units) ` 10,00,000 Costs : Variable ` 7,00,000 Fixed ` 2,10,000 9,10,000 Operating profit `
90,000
16. If fixed costs increased by ` 31,500 with no other cost or revenue factors changing, the break-
even sales in units would be :
a) 34,500 b) 80,500 c) 69,000 d) 94,500
17. If Happy Ltd. Is subject to an effective income tax rate of 40%, the number of units Happy
Ltd. Would have to sell to earn an after-tax profit of ` 90,000 is :
a) 1,00,000 units b) 1,20,000 units c) 1,12,000 units d) 1,45,000 units
18. Sun Ltd. Makes a single product which it sells for ` 10 per unit. Fixed costs are ` 48,000 per
month and the product has a contribution to sales ratio of 40%. In a period when actual sales
were ` 1, 40,000. Sun Ltd.‘s margin of safety in units was :
a) 2,000 b) 6,000 c) 8,000 d) 12,000
19. ABC Ltd. Has fixed costs of ` 60,000 p.a.. It manufactures a single product, which it sells for
` 20 per unit. Its contribution to sales ratio is 40%. ABC Ltd‘s break-even point in units is :
a) 3,000 b) 5,000 c) 7,500
20. The following data relate to two activity levels of an out-patients‘department in a hospital :
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a) Unemployment b) Inequality c) Poverty d) Scarcity
27. “Capitalism” refers to?
a) The use of market b) Government ownership of capital
c) Private ownership of capital goods d) Private ownership of homes & cars
28. The law of demand means?
a) As the quantity demanded rises, the price rises
b) As the price rises, the quantity demanded rises
c) As the price rises, the quantity demanded falls
d) As supply rises, the demand rises
29. The relation that the law of demand defines is.
a) Income and price of a commodity b) Price and quantity of a commodity
c) Income and quantity demanded d) Quantity demanded and quantity supplied
30. The purpose of management accounting is to
a). Help banks make decisions b). Past orientation
c). Help investors make decision d). Help managers make decisions
31. Which of the following are tools of management accounting?
A) Standard costing
B) Decision accounting
C) Human Resources Accounting
D) Budgetary control
a) A, C and D b) A, B and D c) A, B , C, D d) A, B and C
32. Copyrights, Patents and Trademarks are,
a) Current assets b) Fixed assets c) Intangible assets d) Investments
33. The debts which are to be repaid within a short period (a year or less) are referred to as,
a) Current Liabilities b) Fixed liabilities c) Contingent liabilities d) All the above
34. When a petty cash book is kept there will be
a) No entries made at all in the general ledger for items paid by petty cash
b) The same number of entries in the general ledger
c) Fewer entries made in the general ledger
d) More entries made in the general ledger
35. A portfolio comprises two securities and the expected return on them is 12% and 16%
respectively. Determine return of portfolio if first security constitutes 40% of total portfolio.
36. The relationship between two financial variables can be expressed in:
37. Which of the following statements are true about Ratio Analysis?
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39. Determine Contribution if Sales is Rs 1,50,000 and P/V ratio is 40%.
a) Marginal cost b) Prime cost c) All variable overheads d) None of the above
41. What is Margin of Safety if Sales is 20,000 units and B.E.P is 15,000 units.
a) VP b) VO c) VN d) UO e) UP
47. What will come in the place of question mark?
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a) Sunk cost b) Occurred cost c) Weighted cost d) Mean cost
52. In a statement of cash flows, a company investing in short-term financial investments and in
fixed assets results in______________?
a) Increased cash b) Decreased cash c) Increased liabilities d) Increased equity
53. In situation of bankruptcy, stock which is recorded above common stock and below debt
account is_____________?
a) Debt liabilities b) Preferred stock c) Hybrid stock d) Common liabilities
54. Who is called the father of Economics?
a) J.P Kense b) David Ricordo c) Adam Smith d) Mankew
55. In economics, the pleasure, happiness, or satisfaction received from a product is called
______?
a) marginal cost b) rational outcome c) status fulfillment d) utility
56. The opportunity cost of a good is______________?
a) the time lost in finding it
b) the quantity of other goods sacrificed to get another unit of that good
c) the expenditure on the good d) the loss of interest in using savings
57. When we know the quantity of a product that buyers wish to purchase at each possible price
we know_____________?
a) Demand b) Supply c) Excess demand d) Excess supply
58. If a price increase of good A increases the quantity demanded of good B, then good B is
a________________?
a) substitute good b) complementary good c) bargain d) inferior good
59. Economics is the study of?
a) Production technology b) Consumption decisions
c) how society decides what how and for whom to produce d) the best way to run
society
60. when a market is in equilibrium ?
a) quantity demanded equals quantity supplied b) Excess demand and excess supply
are zero c) The market is cleared by the equilibrium price d) All of the above
61. A jogger running at 9 kmph alongside a railway track in 240 meters ahead of the engine of a
120 meters long train running at 45 kmph in the same direction. In how much time will the train
pass the joɡɡer?
a) 3.6 sec b) 18 sec c) 36 sec d) 72 sec
62. Three flags each of different colours are available for a military exercise, Using these flags
different codes can be generated by waving.
I. Single flag of different colours
II. Any two flags in a different sequence of colours.
III. three flags in a different sequence of colours.
The maximum number of codes that can be generated is.
a) 6 b) 9 c) 15 d) 18
63. A train passes a station platform in 36 seconds and a man standing on the platform in 20
seconds. If the speed of the train is 54 km/hr, what is the length of
a) 120 b) 260 c) 240 d) 220
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64. Rs. 800 amounts to Rs. 920 in 3 years at simple interest. If the interest rate is increased by
3%, it would amount to how much ?
a) Rs. 992 b) Rs. 1112 c) Rs. 1056 d) Rs. 1182
65. A sum was put a simple interest at a certain rate for 2 years. Had it been put at 4% higher
rate, it would have fetched Rs. 60 more. The sum is:
a) Rs.750 b) Rs.700 c) Rs.940 d) Rs.820
66. If the number obtained on interchanging the digits of a two-digit number is 18 more than the
original number and the sum of the digits is 8, then what is the original number ?
a) 26 b 35 c) 53 d) Cannot be determined
67. To what Prophet the Zabur was revealed by Allah?
a) Prophet Ibraheem (A.S) b) Prophet Dawood (A.S) c) Prophet Moosa (A.S)
d) Prophet Essa (A.S)
68. What companion of Prophet (PBUH) was awarded with the title of “The sword of Allah”?
a) Abu Bakr Siddique (R.A) b) Umar Farooque (R.A)
c) Ali Al-Murtaza (R.A)d) Khalid bin Waleed (R.A)
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83. Noted Pashto poet, educationist and radio broadcaster Zeenat Anjum Khattak died of brain
tumor on 12 May-2017 in?
a) Peshawar, Pakistan b) London, UK c) Paris, France d) Chicago, US
84. One Belt, One Road’ (OBOR) summit-2017 was held in May in___________?
a)Pakistan b) India c) China d) Iran
85. The test paper of our batch was _____ of other batches.
a) harder b) harder than c) harder than those d) more harder than
86. She is _____ tired and cannot walk anymore.
a) so b) too c) such d) so such
87. Tania is older _____ Sara, while Rebecca is _____ oldest.
a) than, an b) from, the c) then, the d) than, the
88. If Emma _____ earlier, she would always be on time.
a) get up b) got up c) had get up d) had got up
89. She was watching the television, when he _____ in.
a) walk b) walks c) walked d) was walking
90. While UK has earned record revenue this year, __________ well behind in exports.
a) it still lag b) it still lags c) it lag still d) it lags still
91. Anna and Tania went shopping, but __________ couldn’t find anything __________ liked.
a) They, those b) they, them c) those, they d) they, they
92. Nuclear energy is __________ dangerous to be used widely.
a) So b) such c) too d) that
93. If I have money, I __________ it tomorrow.
a) Will purchase b) would purchase c) have purchase d) have purchased
94. Cannon had __________ unique qualities _________ it was used widely in ancient times.
a) Such, that b) such, so c) that, since d) that, that
95. According to Contract Act, what is true about the “Contract”?
I. Legal Term
II. Binding agreement
III. Always in written
a) II only b) I and II only c) II and III only d) I, II and III
96. Contract can be signed between
a) Individuals b) Legal Entities c) Both (A) and (B) d) None of these
97. In general, Partnership entails
a) Limited Liability b) Unlimited Liability c) No Liability at all d) Both (A) and (C)
98. Which kind of partnership entails more legal benefits?
a) Limited Liability Partnership b) Unlimited Liability Partnership c) Ordinary
Partnership d) None of these
99. Limited Liability in Partnership has been introduced after seeking inspiration from
a) Sole Proprietorship b) Company or Corporation c) Both (A) and (B) d) None of
these
100. The deepest hole in the Earth, ‘Kola Super deep Borehole’ on Russia’s Kola Peninsula, is
about _____ feet deep.
a) 10,000 b) 20,000 c) 30,000 d) 40,000
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Correct Answers
2 4 6
1 C 1 A 1 B 1 C 81 A
2 4 6
2 A 2 C 2 D 2 C 82 A
2 4 6
3 A 3 C 3 A 3 C 83 D
2 4 6
4 B 4 D 4 B 4 A 84 C
2 4 6
5 C 5 D 5 C 5 A 85 C
2 4 6
6 C 6 D 6 B 6 B 86 B
2 4 6
7 B 7 C 7 A 7 B 87 D
2 4 6
8 C 8 C 8 D 8 D 88 B
2 4 6
9 D 9 B 9 C 9 A 89 C
1 3 5 7
0 B 0 D 0 A 0 A 90 B
1 3 5 7
1 C 1 B 1 A 1 D 91 D
1 3 5 7
2 C 2 C 2 B 2 C 92 C
1 3 5 7
3 D 3 A 3 B 3 C 93 A
1 3 5 7
4 D 4 C 4 C 4 B 94 A
1 3 5 7
5 B 5 C 5 D 5 C 95 D
1 3 5 7
6 B 6 D 6 B 6 A 96 C
1 3 5 7
7 B 7 A 7 A 7 A 97 B
1 3 5 7
8 A 8 B 8 A 8 B 98 A
1 3 5 7
9 C 9 A 9 C 9 D 99 B
2 4 6 8 10
0 A 0 A 0 D 0 C 0 D
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