FPSC Senior Auditor Past Paper Dated: 30-08-2021 21- ______ is the department belongs to the manager, who is responsible for the cost and revenues. A. Cost centerB. Revenue centerC. Profit centerD. None of these View Answer Answer : C. Profit center Description 22- Which of the following term is used for the larger number of manager subordinates and the higher level manager? A. Activity subordinatesB. Broader responsibility centerC. Broader subordinatesD. None of these View Answer Answer : B. Broader responsibility center Description 23- A manager who is responsible for only the cost of the company belongs to: A. Cost centerB. Revenue centerC. Profit centerD. None of these View Answer Answer : A. Cost center Description 24- Assignment of task for managers, who are accountable for their actions in controlling and budgeting of resources is classified as: A. Action planB. Coordinating the company effortC. Action accountabilityD. None of these View Answer Answer : C. Action accountability Description 25- The effect of every adjusting entry is on: A. Income statement account onlyB. Balance sheet account onlyC. Both (A) & (B)D. None of these View Answer Answer : C. Both (A) & (B) Description 26- What accounting term is given to the outstanding one month's rent if a business pays for only 11 months rent during a financial year? A. RepaymentB. PrepaymentC. PayableD. None of these View Answer Answer : C. Payable Description 27- The requirements of an audit report for a Banking Company in Pakistan is: A. Under the Banking Companies Ordinance, 1962B. Under the Companies Ordinance, 1984C. Both (A) & (B)D. None of these View Answer Answer : A. Under the Banking Companies Ordinance, 1962 Description 28- The purpose of adjusting entries? A. Assign revenue to the period in which they are earnedB. Help to properly measure the period’s Net Profit / LossC. Bring asset and liability account to correct balancesD. All of these View Answer Answer : D. All of these Description 29- From following which one is an example of unearned income? A. Cash paid to supplierB. Advance received from bankC. Advance received from a customer for a purchase order placed by himD. None of these View Answer Answer : C. Advance received from a customer for a purchase order placed by him Description 30- The portion of cost expires during a year is: A. CostB. ExpenseC. ExpenditureD. None of these View Answer Answer : B. Expense Description 31- From the following which is not an adjusting entry? A. Debit insurance expense; credit pre-paid insuranceB. Debit unearned revenue; credit revenueC. Debit cash; credit unearned revenueD. None of these View Answer Answer : C. Debit cash; credit unearned revenue Description 32- Purpose of depreciation is: A. To calculate net profitB. To show the previous profitC. To reduce taxD. None of these View Answer Answer : A. To calculate net profit Description 33- The objective of making a provision for depreciation in the accounts is: A. To charge the cost of fixed assets against profitsB. To show the current market value of fixed assetC. To make cash available to replace fixed assetsD. None of these View Answer Answer : A. To charge the cost of fixed assets against profits Description 34- Deferred Taxation is: A. Fixed assetB. Fixed liabilitiesC. Part of Owners EquityD. None of these View Answer Answer : B. Fixed liabilities Description 35- The depreciation, according to straight line method of providing depreciation: A. Remains constantB. Increases each yearC. Decreases each yearD. None of these View Answer Answer : A. Remains constant Description 36- Amount of depreciation of an asset in total cannot exceed its: A. Scrap valueB. Depreciation valueC. Market valueD. None of these View Answer Answer : A. Scrap value Description 37- The depreciation according to fixed instalment method, is calculated on: A. Balance amountB. Original costC. Scrap valueD. None of these View Answer Answer : B. Original cost Description 38- Definition of Salvage value is: A. Definite sale price of the assetB. Cash to be received when life of the asset endsC. Estimated disposal valueD. None of these View Answer Answer : C. Estimated disposal value Description 39- Under declining balance method depreciation is calculated on: A. Book valueB. Original valueC. Scrap valueD. None of these View Answer Answer : A. Book value Description 40- Becoming out of date or obsolete in accounting is known as: A. AmortizationB. ObsolescenceC. DepletionD. None of these View Answer Answer : B. Obsolescence Description 1 2 3
