Mock Exam-1 Post: Accounts Officer & Jr. Executive Accounts.

Total Marks 100 Time Allowed: 2hrs

Circle Correct Answers (1 mark for each correct answer).
1. The difference between the actual price and the standard price, multiplied by the actual quantity
of materials purchased is the
a) Direct labor price variance b) Direct labor quantity variance
c) Direct materials price variance d) Direct materials quantity variance
2. J Company has a material standard of 1 pound per unit of output. Each pound has a standard
price of Rs25 per pound. During July, J Company paid Rs127,250 for 4,950 pounds, which they
used to produce 4,700 units. What is the direct material price variance?
a) 3,500 unfavorable b) 2,600 favorable c) 12,600 unfavorable d) 10,000 unfavorable
3. G Company has a material standard of 1.1 pound per unit of output. Each pound has a standard
price of Rs25 per pound. During July, G Company paid Rs118,800 for 5,100 pounds, which they
used to produce 4,900 units. What is the direct materials quantity variance?
a) 7,250 favorable b) 5,000 favorable c) 7,250 unfavorable d) 5,000 unfavorable

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 :

No. of consultations per patient 4,500 5,750

Overheads ` 2,69,750 2,89,125
The variable cost per consultation is
a) 15.50 b) 44.44 c) 59.94 d) none of the above
21. A segment of the business that generates both revenue and cost is called:
(a) Profit Center (b) Cost Center (c) Cost driver (d) All of these (e) None of these
22. In cash flows, when a company invests in fixed assets and short-term financial investments
results in
a) Increased Equity b) Increased Liabilities c) Decreased Cash d) Increased Cash
23. The purchase value of assets over its serviceable life is categorized as
a) Appreciated Liabilities b) Appreciated Assets c) Depreciation d) Appreciation
24. Which item comes under financial activities in cash flow?
a) Redemption of Preference Share b) Issue of Preference Share c) Interest Paid d) All
the above
25. What do you mean by Gross National Product?
a) The total value of goods and services produced in the country
b) The total value of all transactions in the country
c) Depreciation in the total value of goods and services produced in the country
d) The total value of goods and services produced in the country and net factor
income from abroad
26. The main economic problem faced by all society is.

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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.

a) 12.4% b) 13.4% c) 14.4% d) 15.4%

36. The relationship between two financial variables can be expressed in:

a) Pure ratio b) Percentage c) Rate or time d) Either of the above

37. Which of the following statements are true about Ratio Analysis?

A) Ratio analysis is useful in financial analysis.

B) Ratio analysis is helpful in communication and coordination
C) Ratio Analysis is not helpful in identifying weak spots of the business.
D) Ratio Analysis is helpful in financial planning and forecasting.

a) A, B and D b) A, C and D c) A, B and C d) A, B , C, D

38. Determine Contribution if Fixed cost is Rs 40,000 and profit is Rs 30,000.

a) Rs 60,000 b) Rs 70,000 c) Rs 30,000 d) None of the above

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39. Determine Contribution if Sales is Rs 1,50,000 and P/V ratio is 40%.

a) Rs 60,000 b) Rs 70,000 c) Rs 30,000 d) None of the above

40. If total cost of 100 units is Rs 5000 and those of 101 units is Rs 5030 then increase of Rs 30
in total cost is

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) 35,000 units b) 5,000 units c) Rs 5,000 d) Rs 35,000

42. Determine sales in rupees for desired profit if fixed cost is Rs 10,000, Variable cost is Rs
30,000, Sales is Rs 50,000 and desired profit is RS 5,000.

a) Rs 73,500 b) Rs 75,000 c) Rs 5,000 d) Rs 37,500

43. What will be sales in rupees for desired profit if fixed cost is Rs 30,000, desired profit is Rs
15,000 and P/V ratio is 30%?

a) Rs 1,50,000 b) Rs 1,00,000 c) Rs 2,00,000 d) None of the above

44. Calculate sales in rupees for desired profit if fixed cost is Rs 10,000, selling price is Rs 20
per unit, Variable cost is Rs 15 per unit and desired profit is Rs 1 per unit.

a) Rs 20,000 b) Rs 50,000 c) Rs 70,000 d) Rs 10,000

45. What will be sales in units if fixed cost is Rs 50,000 Contribution per unit is Rs 60 and
desired profit per unit is Rs 10.

a) 6,000 units b) Rs 1,000 c) 1,000 units d) Rs 6,000

46.  What will be the next term in the series given below ?

BC, DF, HI, NL,?

a) VP b) VO c) VN d) UO e) UP
47. What will come in the place of question mark?

CDXW , EFVU , GHTS , ? , KLPO

a) IJRQ b) IJQP c) IJSR d) JIRQ e) JIPQ

48. What will be the Gross Profit if, total sales is Rs 2,60,000 Cost of net goods sold is Rs
2,00,000 and Sales return is Rs 10,000?
a) 13% b) 28% c) 26% d) 20%
49.  A company had opening inventory of Rs200,000. Sales and purchases during the period
were of Rs400,000 and Rs80,000 respectively. What is the gross profit for the period if the
closing inventory was worth Rs100,000?
a) 20,000 b) 120,000 c) 220,000 d) 320,000
50. ___________ is concerned with the acquisition, financing, and management of assets with
some overall goal in mind.
a) Financial management b) Profit maximization c) Agency theory
d) Social responsibility
51. Cost which has occurred already and not affected by decisions is classified
as______________?

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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)

69. What was the name of Imam Bukhari (R.A)?

a) Muhammad bin Ismaeel b) Muhammad Ismaeel
c) Muhammad Ibraheem d) Ismaeel bin Ibraheem
70. Namaz-e-Khasoof is offered at the time of __________ ?
a) Lunar eclipse b) Solar eclipse c) earthquake d) heavy rain
71. Cave Hira is in the _________ mountain.
a) As-Safa b) Sil c) Uhud d) An-Noor
72. Which country is called the “Land of Prophets”?
a) Saudi Arabia b) Syria c) Palestine d) Iraq
73. The relationship of Hazrat Loot (AS) with Hazrat Ibrahim (AS) is___________?
a) Cousin b) Brother c) Nephew d) None of these
74. Most of Hafiz Quran were martyred in which battle?
a) Badr b) Yamama c) Khyber d) Uhud
75. Hazrat Umer was Caliph for__________Years?
a) 2 years b) 4 years c) 10 years d) None of these
76. The term ‘Computer’ is derived from..........
a) Latin b) German c) French d) Arabic
77. ..........is a combination of hardware and software that facilitates the sharing of information
between computing devices.
a) network b) peripheral c) expansion board d) digital device
78. The technology that stores only the essential instructions on a microprocessor chip and
thus enhances its speed is referred to as
a) CISC b) RISC c) CD-ROM d) Wi-Fi
79. A device that connects to a network without the use of cables is said to be
a)Distributed b) free c) centralized d) none of these
80. On-line real time systems become popular in ........... generation
a) First Generation b) Second Generation c) Third Generation d) Fourth Generation
81. Who is lawyer in case of Kalbhushan Yadave in ICJ followed by arguments from the
Pakistan team led by Attorney General Ashtar Ausaf ?
a) Khawar Qurashi b) Babar Awan c) Aitzaz Ehsan d) Asma Jahngir
82.Who is first Pakistan lady Pilot died at the age of 82 years due to Cancer on 16 May-2017?
a) Shukria Khanam b) Majida Razvi c) Dr. Shahida Malik d) Ayesha

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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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