Commerce MCQ for PPSC FPSC KKPSC BPSC SPSC Practice Test 7

1- In Pakistan chamber of commerce and industry in registered with:

A). Registrar of firms

B).Registrar of companies✔️

C).Registrar of clubs

D). None of these

2- Which of the following partnership can be formed for indefinite period?

A). Limited partnership✔️

B). Joint venture

C). Partnership will

D). None of these

3- Repetition of client clerical routines such as footing and posting is called:

A). Vouching

B). Reperformance

C). Scanning

D). None of these✔️

4- The direction of testing from the source document to the accounting record is called:

A). Vouching

B). Sampling

C). Tracing✔️

D). None of these

5- Which of the following liability of an auditor has occurred when auditor failed to study articles of association and the directors paid dividend out of capital?

A). Negligence✔️

B). Misfeasance

C). Libel

D). None of these

6- Visual examination of accounting record and schedules to identify unusual items or inconsistencies is called:

A). Observation✔️

B). Scanning

C). Inquiry

D). Inspection

7- Which of the following is not capital asset?

A). Shares of company

B). Jewellery

C). Coin

D). Copy rights✔️

E). None of these

8- Ground rent is an income from:

A). Agriculture

B). Salary

C). Business

D). Other sources✔️

9- Which of the following is admissible expenditure in respect of income from Business?

A). Fines and penalties

B). Income tax

C). Excise duty

D). Cost of permanent shop board✔️

E). None of these

10- Identify the item that is likely to serve as source document:

A). Trial Balance

B). Income Statement

C). Balance sheet

D). Invoice from supplier✔️

11- The formula ( cost less salvage value/ Total capacity X units extracted) refers to which depreciation method:

A). Straight line

B). Units of production✔️

C). Declining balance

D). Depletion

12- While passing adjusting entries for what type of transactions expenses are debited and assets are credited:

A). Accrued revenue

B). Accrued expenses✔️

C). Declining balance

D). Depletion

13- When costs are rising, which method reports higher net income:



C). Average

D). The most recent purchase price

14- At the time of admission of a new partner, good will raised should be written off in:

A). New profit sharing ratio

B). Old profit sharing ratio✔️

C). Sacrificing ratio

D). Gaining ratio

15- A and B are partner in the ration of 2:1. The admit C for  shares who contribute Rs. 3000 for his share of goodwill.

A).Rs. 3,000

B).Rs. 9,000✔️

C).Rs. 12,000

D).Rs. 15,000

16-If net  sales Rs.100,000 cost of goods sold Rs. 55,000, Administrative expenses Rs 5300, Selling expenses Rs.4375, Interest expense Rs. 500, the operation profit is:

A). Rs. 35325

B). Rs. 45000

C). Rs. 39700

D). Rs. 34825✔️

17- Which ratio best reflects a company’s ability to meet immediate interest payments?

A). Debt Ratio

B). Equity Ratio

C). Times interest earned✔️

D). None of these

18- Identify which items are subtract from the list amount and not recorded when computing purchase price:

A). Freight in

B). Trade discount✔️

C). Purchase discount

D). Purchase return

19- Bonus payable only on the maturity of the policy is termed as:

A). Cash bonus✔️

B). Reversionary bonus

C). Interim bonus

D). Bonus is reduction premium

20- Rebate on bill discounted (unearned discount) is :

A). An expense

B). An income

C). A liability✔️

D). An asset

21- Which of the following is an example of Non-exchange transaction?

A). Good lost by fire✔️

B). Electric charges paid

C). Machinery Purchased on credit

D). None of these

22- The time limit for payment of divided for a listed public limited company is:

A).30 days

B).45 days

C).60 days

D).90 days✔️

23- The time limit for payment of dividend for a unlisted limited company is:

A).90 days

B).60 days✔️

C).45 days

D). 30 days

24- As per Companies Ordinance 1984 a listed public limited company is bound to prepare its financial statements on:

A). Yearly basis✔️

B). Half- yearly basis

C). Daily basis

D). None of these

25- As per Companies Ordinance 1984 loose tools are recorded under the head of:

A). Current assets✔️

B). Fixed assets

C). Long term investment

D). Long term deposits

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