Professional Documents
Culture Documents
4. A company sold goods of worth Rs.1 million, the manufacturing cost of the goods were
Rs.600,000. The transport used in the sale cost Rs.100,000 and the wages paid during the
process of sale were also Rs.100,000. What is the gross and net profit?
(A) Gross Profit = Rs.600,000 and Net Profit = Rs.400,000
(B) Gross Profit = Rs.400,000 and Net Profit = Rs.600,000
(C) Gross Profit = Rs.200,000 and Net Profit = Rs.400,000
(D) Gross Profit = Rs.400,000 and Net Profit = Rs.200,000
7. What standards are used to prepare financial statements by most of the countries and
companies
(A) International Financial Reporting Standards
Sensitivity: Internal
(B) International Financial Accounting Standards
(C) International Accounting & Auditing Standards
(D) International Risk Reporting Standards
9. A company sold goods worth $5,000 on 5 June and $10,000 on 28 June. The company
received the first payment on 25 June and second on 7 July. The company prepared the
financial statement on 30 June. What would be the total sale on the financial statement?
(A) $0
(B) $5,000
(C) $10,000
(D) $15,000
Sensitivity: Internal
(C) I and II only
(D) I, II and III
14. A machine price was $1,000 and was carried through a truck. The truck’s fares were
$500. The engineers charged $500 for the installation. The cost of the machine is?
(A) $1,000
(B) $1,500
(C) $2,000
(D) $2,500
17. The process of recording consumption of natural resources (or wasting assets) is called
(A) Amortization
(B) Depletion
(C) Going Concern
(D) Residual Value
18. The concept that the enterprise will continue in a foreseeable future is known as
(A) Amortization
(B) Depletion
(C) Going Concern
(D) Residual Value
20. An item of equipment cost $300,000 and has a residual value of $50,000 at the end of its
expected useful life of four years. What is the depreciable amount?
Sensitivity: Internal
(A) $50,000
(B) $250,000
(C) $300,000
(D) $350,000
21. The expected disposal value of the asset (after deducting disposal costs) at the end of
its expected useful life is called
(A) residual value
(B) net book value
(C) depreciation
(D) substance over form
22. The figure that appears in the statement of financial position, after the depreciation, is
known as
(A) depreciation
(B) substance over form
(C) residual value
(D) net book value
25. A company purchases a non-current asset in Year 1 for $90,000. The depreciation charge
is $15,000. What net book value would be recorded in financial position statement (or
balance sheet) at the end of Year-2?
(A) $75,000
(B) $60,000
(C) $30,000
(D) $15,000
Sensitivity: Internal
ANSWERS: ACCOUNTING MULTIPLE CHOICE QUESTIONS
21(A) 22(D) 23(C) 24(C) 25(B)
26. All procurement opportunities over _______ rupees should be advertised in the
newspaper.
(A) 0.5 million
(B) 1.5 million
(C) 1.5 million
(D) 2.0 million
27. The procurement opportunities over two million rupees should be advertised in at least
_______ newspaper(s).
(A) one
(B) two
(C) three
(D) four
28. The principal method for the procurement of goods, services and works is
(A) open competitive bidding
(B) close competitive bidding
(C) FIFO
(D) LIFO
29. The bidder with the _______ evaluated bid shall be awarded the procurement contract.
(A) highest
(B) lowest
(C) average
(D) zero variance
30. Where needed the procuring agency shall require the successful bidder to furnish a
performance guarantee which shall not exceed _______ of the contract amount.
(A) 5%
(B) 7.5%
(C) 10%
(D) 12.5%
31. The bids for procurement opportunities shall be submitted in a/an _______ package or
packages.
(A) open
(B) sealed
(C) transparent
(D) none of these
Sensitivity: Internal
32. Where the procuring agency require the bidders to furnish a bid security, the bid
security should not exceed _______ of the bid price.
(A) 5.0%
(B) 7.5%
(C) 10.0%
(D) 12.5%
36. Where alternative technical proposals are possible, the bidding process used is
(A) single stage one envelope procedure
(B) single stage two envelope procedure
(C) two stage bidding procedure
(D) two stage two envelope bidding procedure
37. Where the bids are to be evaluated on technical and financial grounds and price is taken
into account after technical evaluation, the bidding process used is
(A) single stage one envelope procedure
(B) single stage two envelope procedure
(C) two stage bidding procedure
(D) two stage two envelope bidding procedure
38. In large and complex contracts where technically unequal proposals are likely to be
encountered, or there are two or more equally acceptable technical solutions available to
the procuring agency, the bidding process used is
(A) single stage one envelope procedure
Sensitivity: Internal
(B) single stage two envelope procedure
(C) two stage bidding procedure
(D) two stage two envelope bidding procedure
39. Any bidder feeling aggrieved by any act of the procuring agency may lodge a written
complaint concerning his grievances not later than _______ days after the announcement of
the bid evaluation report.
(A) 7
(B) 10
(C) 15
(D) 30
40. The committee shall investigate and decide upon the complaint within _______ days of
the receipt of the complaint.
(A) 15
(B) 30
(C) 45
(D) 60
Sensitivity: Internal