कर्मचारी समायोजन नियमावली ,२०७४ फाल्गुन २८ मा सार्बजनिक : Lok Sewa Tayari

Monetary Policy 074/75 मौद्रिक नीति अर्ध बार्षिक समिक्षा को सम्पूर्ण जानकारी

Lok Sewa NaSu Third Paper Accountancy & Management - 50 Set Question with Answer

1. Which of the following statement is true?

(a) The director of a company is liable for any losses of the company

(b) Sole trader business is owned by share holder and operated by the proprietor

(c) Partner is liable for losses in a partnership in proportion to their share ratio

(d) A company is run by a director on behalf of its member

2. A work sheet provides total information for preparing

(a) Income statement (b) Balance sheet (c) Financial statement (d) Adjusting entries

3. Which of the following is not a long-term liability?

(a) Accounts payable (for payables due in more than one year) (b) Bank overdrafts

(c) Bank borrowings reimbursable in more than one year (d) Bonds

4. Bank statement also called

(a) Pass book (b) Cash book (c) Credit book (d) Debit book

5. In cash book bank charges recorded

(a) Debit side (b) Credit side (c) both a & b (d) Non of them

6. Which of the following is not a current asset?

(a) Accounts receivable (b) Inventory of finished products

(c) Inventory of raw materials (d) Land

7. Which of the following transaction would have no impact on Gross Profit?

(a) Carriage in (b) Wages (c) Wages outstanding (d) Loss by fire

8. Closing stock effect which accounts

                (a) Adjustment Trial balance and Income statement (b) Income statement and Trading account

(c) Trading account and Balance sheet (d) Adjustment Trial balance and Trading account

9. Which of the following is recorded under Long Term Liabilities section of the Balance Sheet?

(a) Creditors (b) Provision for Taxation (c) Dividend Payable (d) Bonds

10. A contra assets account shows as a deduction from the related assets account in the balance sheet.

(a) Assets Account (b) Accumulated Depreciation (c) Expense Account (d) Revenue Account

11. When all the items relating to revenue and expense have been recorded in the income statement than ultimate result

(a) Net Income/Net Loss (b) Resource valuation (c) Claim valuation (d) None

12. The Accrued Expenses which are Shown in the Worksheet and balance Sheet under the head of

(a) Current Assets (b) Current Equity (c) Current Liability (d) Current Expenses

13. Direct expenses are

(a) Carriage inward (b) Carriage outward (c) Wages (d) Both a & c

14. Liabilities are

(a) Equal to the sum of assets plus owner’s equity

(b) Created when stockholder contributed cash to company by stock exchanges

(c) Obligation of the entity to outsiders (d) All of above are correct

15. When do revenues affect net income?

 (a) In the period during which they are earned

(b) In the period in which their cash equivalent is collected (c) Both a and b (d) Neither a nor b

16. Which of the following statements is true?

(a) The balance sheet, the income statement and the cash flow statement are totally linked

(b) There are links only between the balance sheet and the cash flow statement

(c) There is no link between the balance sheet, the income statement and the cash flow statement

(d) There are links only between the income statement and the cash flow statement

17. What is the final stage of the accounting process?

(a) Journal (b) Financial statement (c) Ledger (d) Trial balance

18. Which of the following does not describe accounting?

(a) Language of business (b) Useful for decision making

(c) Is an end rather than a mean to an end?

(d) Used by business, government, non-profit organizations and individuals

19. AAA stands for

(a) American accounting agency (b) American accounting association

(c) Asian accounting association (d) Australian accounting association

20. Double entry book-keeping was fathered by

(a) F. W. Taylor (b) Jones (c) Henry Fayol (d) L. Pacioli

21. Which one of the following statement completely and correctly describe accounting

(a) Recording, classifying and summarizing economic activities in systematic way

(b) Recording, classifying and summarizing all activities in useful manner

(c) Accounting is the systematic process of recording social activities only

(d) Recording, classifying and summarizing economic activities in informal manner

22. Which of the following would not be considered a component of 'cost' of Goods Sold?

(a) Sales force Salaries (b) Transportation for purchase

(c) Import duties or raw material (d) Factory electricity expense

23. The accountant's worksheet:

(a) Lays the groundwork for formal financial statement preparation (b) Is a fundamental financial statement (c) Provides details necessary for full disclosure and the preparation of footnotes (d) Is prepared at the end of each operating cycle

24. Work sheet signify

(a) A complete sketch of business activities (b) Information about assts and liabilities

(c) Adjusting entries as closed of period (d) None of above

25. To arrive at the Gross profit of a Trading business, which one of the following formula is applied?

(a) Sales - (Opening Stock - Purchases - Closing Stock)

(b) Sales - (Opening Stock + Purchases + Closing Stock)

(c) Sales - (Opening Stock + Purchases - Closing Stock)

(d) Sales - (Opening Stock - Purchases + Closing Stock)

26. Amount of profit on revenue after deducting the direct cost of making the goods or supplying the services is called

(a) Gross profit (b) Cost of sales (c) Expenses (d) Net profit

27. Consider the following

Sales	$80,000
Beginning merchandise inventory	$10,000
Purchases	$45,000
Cost of goods sold	$50,000

Determine the value of the ending merchandise inventory

(a) $ 10,000 (b) $ 15,000 (c) $ 5,000 (d) $ 25,000

28. Cost of Goods sold is classified as which type of account

(a) Asset (b) Liability (c) Revenue (d) Expense

29. Which of the following is a financial asset?

(a) Inventories (b) Equipment (c) Marketable Securities (d) Leasehold land

30. A business started its financial period with 100 bicycles and then bought 600 bicycles during the period. The cost of 50 bicycles was owing to creditors at the end of the period. It sold 500 bicycles during the financial period, but customers have paid for only 400. Each bicycle was bought for £100 and sold for £150. What is the value of sales to be included in the firm's profit and loss account for the period?

(a) £40,000 (b) £60,000 (c) £50,000 (d) £75,000

31. Cost of finished goods inventory is calculated by

(a) Multiplying units of finished goods inventory with the cost per unit

(b) Dividing units of finished goods inventory with the cost per unit

(c) Dividing per unit cost with finished goods inventory (d) Deducting total cost from finished goods inventory

32. An organization sold units 2,000 and has closing finished goods 500 units and opening finished goods units were 300.The quantity of unit produced would be

(a) 7,500 units (b) 4,500 units (c) 8,500 units (d) 2,200 units

33. Increase in material Inventory means:

(a) The ending inventory is greater than opening inventory

(b) The ending inventory is less than opening inventory

(c) Both ending and opening inventories are equal (d) Can not be determined

34. Conversion cost = Direct labor +___________

(a) Labor (b) F.O.H (c) Material (d) Non of these

35. Direct expenses are such expenses

(a) Which are directly paid to the employee (b) Which are directly associated with the purchase

(c) Which are directly associated with the sale (d) All of above

36. Selling expenses are shown in

(a) Cost of Goods sold (b) Profit and loss account

(c) Manufacturing account (d) Profit and loss appropriation account

37. A top dress designer misjudged the fashion market, and has an unsold stock of 100 silk dresses which normally sell for Rs. 500 each. They cost the business Rs. 200 each to make, but can now only be sold for Rs.100 each. What is the valuation per dress for the purposes of the asset valuation in the balance sheet?

(a) Rs. 200 (b) Rs. 500 (c) Rs. 100 (d) None

38. Which of the following is true regarding the income statement?

(a) The income statement is sometimes called the statement of operations

(b) The income statement reports revenues, expenses, and liabilities

(c) The income statement reports only revenue at the point of sale

(d) It shows financial position of a business at a particular period of time

39. The specific cost of the workforce used to produce a product such cost is called

(a) Direct labor cost (b) Direct material cost (c) Other than production cost (d) Non of above

40. Loss obtained by the business is written in work sheet on

(a) Assets side of Balance sheet (b) Liability side of Balance Sheet

(c) Plus in Equity side of Balance sheet (d) b and c

41. Retain earning increased when the corporation has a

(a) Profit (b) Loss (c) No profit, No loss (d) None of them

42. A company has, by the end of its financial period, paid out more Value Added Tax than it has received. How would this be shown in the balance sheet?

(a) As an accrual (b) As a debtor within current assets

(c) As a 'creditor due within one year' (d) As a 'creditor due after more than one year'

43. The controller's responsibilities are primarily in nature, while the treasurer's responsibilities are primarily related to

(a) Operational; Financial accounting (b) Financial management; Accounting

(c) Financial management; Operations (d) Accounting; Financial management

44. The outcome of financial accounting is to

(a) Record all transactions in the books of accounts (b) Provide management with detailed analyses of costs

(c) Present the financial results to the organization by means of recognized statements (d) Calculate profit

45. The Maximum number of Banking Partners in Pakistan can be fixed at the following

(a) 10 (b) 20 (c) 50 (d) No Limit

46. The focal point of financial management in a firm is

(a) The number and types of products or services provided by the firm

(b) The minimization of the amount of taxes paid by the firm

(c) The creation of value for shareholders (d) The dollars profits earned by the firm

47. Which of the following is not a user of Management Accounting Information?

(a) Store Manager (b) Chief Executive Officer (c) Creditor (d) Chief Financial Officer

48. Which of the following is a benefit of the corporate form of business

(a) Rising large amount of capital is easier (b) Ownerships are easily transferrable

(c) Limited liability of the shareholders/stockholders (d) All of the above

49. Company with single taxation is called

(a) LLP (b) S-Type (c) Joint Stock Company (d) PC

50. In general, the asset side of the balance sheet is designed to summarize balance sheet accounts with

(a) Credit balances (b) Debit balances (c) Neither a. nor b (d) Both a and b

Accounting & Financial Terms for Lok Sewa NaSu Third Paper Accountancy and Management

A

• Accounts payable - a record of all short-term (less than 12 months) invoices, bills and other liabilities yet to be paid. Examples of accounts payable include invoices for goods or services, bills for utilities and tax payments due.
• Accounts receivable - a record of all short-term (less than 12 months) expected payments, from customers that have already received the goods/services but are yet to pay. These types of customers are called debtors and are generally invoiced by a business.
• Accounts receivable finance - see Factoring.
• Accrual accounting - an accounting system that records transactions at the time they occur, whether the payment is made now or in the future.
• Amortisation - the process of expensing for intangible assets such as goodwill and intellectual property over a period of time. See also Depreciation.
• Assets - are things you own. These can be cash or something that can be converted into cash such as property, vehicles, equipment and inventory.
• Audit - a physical check performed by an auditor or tax official on a business' financial records to check that everything is accounted for correctly.

B

• Bad debts - money owed to you that is unlikely to be paid to you in the foreseeable future.
• Balance sheet - a snapshot of a business as of a particular date. It lists all of a business' assets and liabilities and works out the net assets.
• Balloon payment - a final lump sum payment due on a loan agreement. Loans with a larger final 'balloon payment' have lower regular repayments over the term of the loan.
• Bank reconciliation - a cross-check that ensures the amounts recorded in the cashbook match the relevant bank statements.
• Bankrupt - an individual is bankrupt when they cannot pay their debts and aren't able to reach an agreement with their creditors.
• Bankruptcy - a process where an individual is legally declared bankrupt and their assets and financial affairs are administered by an appointed trustee.
• Benchmark - a set of conditions against which a product or business is measured.
• Benchmarking - the process of comparing your business to similar businesses in your industry.
• Bill of sale - a legal document used in the purchase of property or other assets that details what was purchased, where the purchase took place, and for how much.
• Bookkeeping - the process of recording the financial transactions of a business.
• Bootstrapping - where a business funds growth purely through personal finances and revenue from the business.
• Bottom line - see Net profit.
• Break-even point - the exact point when a business' income equals a business' expenses.
• Budget - a listing of planned revenue and expenditure for a given period.

C

• Capital - wealth in the form of money or property owned by a business.
• Capital cost - a one-off substantial purchase of physical items such as plant, equipment, building or land.
• Capital gain - is the amount gained when an asset is sold above its original purchase price.
• Capital growth - an increase in the value of an asset.
• Cash - includes all money that is available on demand including bank notes and coins, petty cash, certain cheques, and money in savings or debit accounts.
• Cash accounting - an accounting system that records transactions at the time money is actually received or paid.
• Cash book - a daily record of all cash, credit or cheque transactions received or paid out by a business.
• Cash flow - the measure of actual cash flowing in and out of a business.
• Cash incoming - money that is flowing into the business.
• Cash outgoing - money that is flowing out of the business.
• Chart of accounts - an index of the accounts a business will use to classify transactions. Each account represents a type of transaction such as Asset, Liability, Owner's equity, Income, and Expense.
• Chattel Mortgage - is similar to a hire-purchase agreement although the business owns the asset from the start. Chattel mortgages require regular ongoing payments and typically provide the option of reducing the payments through the use of a final 'balloon' payment.
• Collateral - see Security.
• Commercial bill - (also known as a bill of exchange) is a form of commercial loan that can be offered on an interest only basis, or reducing basis. Commercial bills typically require some sort of security and suit short-term funding needs such as inventory.
• Contingent liability - a liability that only needs to be paid if a particular event or circumstance occurs.
• Cost of goods sold - the total direct costs of producing a good or delivering a service.
• Credit - a lending term used when a customer purchases a good or service with an agreement to pay at a later date (e.g. an account with a supplier, a store credit card or a bank credit card).
• Creditor - a person or business that allows you to purchase a good or service with an agreement to pay at a later date. A creditor is also anyone who you owe money to, such as a lender or supplier.
• Credit limit - a dollar amount that cannot be exceeded on a credit card or the maximum lending amount offered for a loan.
• Credit rating - a ranking applied to a person or business based on their credit history that represents their ability to repay a debt
• Credit history - a report detailing an individual's or business' past credit arrangements. A credit history is often sought by a lender when assessing a loan application.
• Crowdfunding - Is a way of financing your business idea through donations of money from the public. This is usually done online, through a crowd funding website.
• Current asset - an asset in cash or that can be converted into cash within the next 12 months.
• Current liability - a liability that is due for payment in the next 12 months.

D

• Debit - in double-entry bookkeeping a debit is an entry made on the left hand side of a journal or ledger representing an asset or expense.
• Debt - any amount that is owed including bills, loan repayments and income tax.
• Debt consolidation - the process of combining several loans or other debts into one for the purposes of obtaining a lower interest rate or reducing fees.
• Debt finance - money provided by an external lender, such as a bank or building society.
• Debtor - a person or business that owes you money.
• Debtors finance - See Factoring.
• Default - a failure to pay a loan or other debt obligation.
• Depreciation - the process of expensing an asset over a period of time. An asset is depreciated to spread the cost of the asset over its useful life.
• Disbursements - money that is paid out by a business.
• Discount - a reduction applied to a full priced good or service. See also Markdown.
• Double-entry bookkeeping - is a bookkeeping method that records each transaction in two accounts, both as a debit and a credit.
• Drawings - personal expenses paid for from a business account.
• Drip pricing - Is when one price is presented at the beginning of an online shopping experience and gradually, incremental fees and charges are added (or 'dripped') as you progress, for example, when buying a plane ticket. Drip pricing can result in the customer paying a higher price for a service or product than they first thought. As a business owner, you are required to show fees and charges at the beginning of an online shopping process and not gradually add them in.

E

• Employee share schemes - an employee share scheme (ESS) is where you give your employees the opportunity to buy shares in your company. It is also known as an 'employee share purchase plan' or an 'employee equity scheme'.
• Encumbered - an encumbered asset is one that is currently being used as security or collateral for a loan.
• Equity - the value of ownership interest in the business, calculated by deducting liabilities from assets. See also owner's equity.
• Equity finance - is money provided to a business in exchange for part ownership of the business. This can be money invested by the business owners, friends, family, or investors like business angels and venture capitalists.
• Excise duty - an indirect tax levied on certain types of goods produced or manufactured in Australia including petrol, alcohol, tobacco and coal.

F

• Facility - a predetermined arrangement such as an account offered by a financial institution to a business (e.g. a bank account, a short-term loan or overdraft).
• Factoring - (also known as debtors finance and accounts receivable finance) — is when a factor company buys a business' outstanding invoices at a discount. The factor company then chases up the debtors. Factoring is a way to get quick access to cash, but can be quite expensive compared to traditional financing options.
• Finance - money used to fund a business or high value purchase.
• Financial year - a twelve month period typically from 1 July to 30 June.
• Financial statement - a summary of a business' financial position for a given period. Financial statements can include a profit & loss, balance sheet and cash flow statement.
• Fixed asset - a physical asset used in the running of a business.
• Fixed cost - a cost that cannot be directly attributed to the production of a good or service.
• Fixed interest rate - when the interest rate of a loan remains the same for the term of the loan or an agreed timeframe.
• Float - is when a private company offers shares in the company to the public for the first time. See Initial public offering.
• Forecast - a prediction of future financial transactions. Forecasts are often used to help plan a more accurate budget.
• Fringe benefits - non-monetary benefits such as company cars and mobile phones, included as part of a salary package.
• Fully drawn advance - is a long term loan with the option to fix the interest rate for a period. These loans are usually secured and can be used to fund a new business or equipment.

G

• Goodwill - an intangible asset that represents the value of a business' reputation.
• Gross income - the total money earned by a business before expenses are deducted.
• Gross profit - (also known as net sales) the difference between sales and the direct cost of making the sales.
• Guarantor- a person who promises to pay a loan in the event the borrower cannot meet the repayments. The guarantor is legally responsible for the debt.

H

• Hire-purchase - a type of finance contract where a good is purchased through an initial deposit and then rented while the good is paid off in instalments plus interest charges. Once the good is fully paid the ownership of the good transfers to the purchaser. See also Rent to buy.

I

• Initial public offering (IPO) - when a company first offers shares on the stock market to sell them to the general public. Also known as floating on the stock market.
• Insolvent - a business or company is insolvent when they cannot pay their debts as and when they fall due.
• Intangible assets - non-physical assets with no fixed value, such as goodwill and intellectual property rights.
• Interest - the cost of borrowing money on a loan or earned on an interest-bearing account.
• Interest rate - a percentage used to calculate the cost of borrowing money or the amount you will earn. Rates vary from product to product and generally the higher the risk of the loan, the higher the interest rate. Rates may be fixed or variable.
• Inventory - an itemised list of goods or materials a business is holding for sale.
• Investment - an asset purchased for the purpose of earning money such as shares or property.
• Invoice - a document provided to a customer to request payment for a good/service received. See our payments and invoicing topic.
• Invoice finance - is finance offered based on the strength of a business' accounts receivable. This form of financing is similar to factoring, except that the invoices or accounts receivables remain with the business. See also Factoring.

L

• Liability - a financial obligation or amount owed.
• Line of credit - an agreement allowing a borrower the ability to withdraw money from an account up to an approved limit.
• Liquidate - to quickly sell all the assets of a company quickly and convert them into cash.
• Liquidation - the process of winding up an insolvent company. An appointed administrator will do this by ceasing business operations, selling assets, and paying creditors and shareholders.
• Liquidity - how quickly assets can be converted into cash.
• Loan - a finance agreement where a business borrows money from a lender and pays it back in instalments (plus interest) within a specified period of time.
• Loan to value ratio (LVR) - your loan amount shown as a percentage of the market value of the property or asset that will be purchased. The ratio helps a lender work out if the loan amount can be recouped in the event a loan goes into default.

M

• Margin - the difference between the selling price of a good or service and the profit. Margin is generally worked out as a gross margin percentage which shows the proportion of profit for each sales dollar. See also Mark up.
• Margin call - when the value of a property or asset falls below a certain LVR. For higher risk loans such as margin loans, the lender will request further payment to bring the LVR back to the agreed percentage. See also Loan to value ratio (LVR).
• Mark down - a discount applied to a product during a promotion/sale for the purposes of attracting sales or for shifting surplus/discontinued products. See also Discount.
• Mark up - the amount added to the cost price of goods, to help determine a selling price. Essentially it is the difference between the cost of the good/service and the selling price, but it does not take into account what proportion of the amount is profit. See also Margin.
• Maturity date - when a loan's term ends and all outstanding principal and interest payments are due.

N

• Net assets - (also known as net worth, owner's equity or shareholder's equity) is the total assets minus total liabilities.
• Net income - the total money earned by a business after tax and other deductions are taken out.
• Net Profit - (also known as your bottom line) is the total gross profit minus all business expenses.
• Net Worth - See Net assets.

O

• Overdraft facility - a finance arrangement where a lender allows a business to withdraw more than the balance of an account.
• Overdrawn account - a credit account that has exceeded its credit limit or a bank account that has had more than the remaining balance withdrawn.
• Overheads - the fixed costs associated with operating a business such as rent, marketing, utilities and administrative costs. See also Fixed costs.
• Owner's equity - See Net assets.

P

• Personal Property - covers any property someone can own, except for land, buildings and fixtures. Examples include goods, plant and equipment, cars, boats, planes, livestock and more.
• Personal Property Security Register (PPSR) - the PPSR replaces a number of registers of security interests and provides a single national noticeboard of security interests in personal property.
• Petty cash - cash for the purposes of small miscellaneous purchases such as postage.
• Plant and equipment - a group of fixed assets used in the operation of a business such as furniture, machinery, fit-out, vehicles, computers and tools.
• Principal - the original amount borrowed on a loan or the remainder of the original borrowed amount that is still owing (excluding the interest portion of the amount).
• Profit - the total revenue a business earns minus the total expenses. See also Revenue.
• Profit and loss statement - (also known as an income statement) is a financial statement listing sales and expenses and is used to work out the gross and net profit of a business.
• Profit margin - see Margin.
• Projection - see Forecast.

R

• R&D - stands for 'research and development'. Businesses conduct research and development to innovate, create new products and find better ways of doing things.
• Receipts - a document provided to a customer to confirm payment and to confirm a good/service has been received.
• Record keeping - the process of keeping or recording information that explain certain business transactions. Record keeping is a requirement under tax law.
• Refinance - when a new loan is taken out to pay off an existing one. Refinancing is often done to extend the original loan over a longer period of time, reduce fees or interest rates, switch banks, or move from a fixed to variable loan.
• Rent to buy - is a type of finance arrangement where a good is purchased through an initial deposit and then 'leased' while the good is paid off. Once the good is fully paid the purchaser has the option (but no obligation) to buy the good or continue leasing. See also Hire purchase.
• Repossess - the process of a bank or other lender taking ownership of property/assets for the purpose of paying off a loan in default.
• Retention of title - a type of clause that can be included in contracts where a buyer may physically receive property, but doesn’t take legal ownership from the seller until the full purchase price is paid.
• Return on investment (ROI) - a calculation that works out how efficient a business is at generating profit from the original equity provided by the owners/shareholders. It's a way of thinking about the benefit (return) of the money you've invested into the business. To calculate ROI, divide the gain (net profit) of the investment by the cost of the investment - the ROI is expressed as a percentage or a ratio.
• Return on investment (ROI) formula - (Net profit) / (Cost) x 100 = ROI
• Return on investment (ROI) formula example - Annie buys $1,000 worth of stocks and sells the stocks a year later for $1,500. The net profit is $500. ROI = (500 / 1000) = 0.5 x 100 = 50%. Annie's ROI on the stocks is 50%.
• Revenue - (also known as turnover) the amount earned before expenses, tax and other deductions are taken out.

S

• Single-entry bookkeeping - a bookkeeping method used within a cash accounting system and records one side of each transaction.
• Scam - a deliberate and targeted deception designed to obtain money or information unlawfully. See our business scams section.
• Security - (also known as Collateral) is property or assets that a lender can take possession of, in the event that a loan cannot be repaid.
• Shareholder's equity - see Net assets.
• SMSF - stands for self-managed superannuation fund. An SMSF is a way of saving for your retirement. Unlike other super funds, an SMSF is self-managed, which means you're responsible for making sure the super fund complies with super and tax laws.
• Stock - the actual goods or materials a business currently has on hand.
• Stocktaking - a regular process involving a physical count of merchandise and supplies actually held by a business, completed to verify stock records and accounts.
• Superannuation - money set aside for retirement, that must be paid into a complying superannuation fund.

T

• Tax invoice - an invoice required for the supply of goods or services over a certain price. A valid tax invoice is required when claiming GST credits. See also Invoice.
• Turnover - See Revenue.

V

• Variable interest rate - when the interest rate of a loan changes with market conditions for the duration of the loan.
• Variable cost - a cost that changes depending on the number of goods produced or the demand for the products/service.
• Venture Capital - capital invested in a start-up business that is thought to have excellent growth prospects but does not have access to capital markets because it is a private company.

W

• Working capital - the cash available to a business for day to day expenses.