MCOM Exist Exam Questions

MCQs
General
1. A tangible item is termed as:

a. a service b. a good
c. an idea d. a concept
2. The practice of introducing a new product at a high price for a brief period in the hope of
covering productions costs refers to __________________
a. market penetration pricing b. price lining
c. market skimming pricing d. quantity discounts
3. A brand is BEST defined as a ____________________
a. registered design or symbol that is displayed on the product.
b. related group of words that describe the product.
c. name, symbol, design, or combination of these that identifies a seller's products.
d. copyrighted word(s) that give the manufacturer exclusive ownership
4. Which of the following is the final phase in the product development process?
a. building a prototype b. test marketing
c. business analysis d. commercialization
5. The exchange rate is ___________________
a. the growth rate differential between two countries
b. the value of one currency in terms of another
c. the rate at which goods are sold in a country
d. the interest rate differential between two countries.
6. The difference between exports and imports of a country is called ________________
a. balance of payment b. balance of trade
c. foreign exchange d. none of these
7. Macroeconomics deals with the ________________
a. behavior of firms b. behavior of the electronics industry
c. activities of individual units d. economic aggregates
8. The study of inflation is part of ___________________
a. microeconomics b. descriptive economics
b. macroeconomics d. normative economics
9. Aggregate supply is the total amount _____________________
a. of goods and services produced in an economy
b. of goods produced by the government
c. of products produced by a given industry
d. of labor supplied by all households
10. Liability of a sole proprietor is _______________
a. limited b. unlimited
c. both of above d. none of above
11. A recession is a period _________________
a. of declining prices b. of very rapidly declining prices
c. of declining unemployment d. when aggregate output declines
12. If marginal benefit is greater than marginal cost, a rational choice involves:
a. more or less, depending on the benefits of other activities
b. no more of activity
c. less of the activity
d. more of the activity.
13. Opportunity cost is
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a. the cost incurred in the past before deciding about what to do in the future
b. a cost that cannot be avoided, regardless of what is done in the future
c. what we forgo, or give up, when we make a choice or a decision
d. the additional benefit of buying an additional unit of a product
14. ___________ is a method of primary data collection
a. questionnaire b. interview
c. both of the above d. none of the above
15. In an effective marketing system, a consumer is not disillusioned by __________________
a. multiple grades b. adulteration
c. multiple prices d. all of these
16. The policy which is used to regulate govt. revenue and expenditures is called ____________
a. monetary policy b. open market operations
c. fiscal policy d. money supply
17. Law passed by legislative body or parliament of country are called _________
a. Act b. Rule
c. Ordinance d. none of them
18. Market value of all goods and services produced within a country in a given period
a. GNP b. NNP
c. GDP d. NGP
19. ___________segmentation is based on age and gender etc. of consumers
a. geographic b. behavioral
c. demographic d. psychographic
20. The financial condition of a company at certain date and provide details of the items that
company owns (assets) and the amount the company owes (liabilities).
a. cash flow statement b. owner’s equity statement
c. income statement d. balance sheet
21. The process of creating the desired image in the customer’s mind is known as
a. positioning b. segmentation
c. targeting d. management
22. Responsiveness of consumers to change in prices is termed as ____________________
a. elasticity of demand b. elasticity of supply
23. ________________ is artificial 'legal being' endowed by law with the powers, rights,
liabilities, and duties of a natural person.
a. sole proprietorship b. cooperative
c. partnership d. corporation
24. _______________ is the development of alternative plans for possible business conditions
a. strategic planning b. contingency planning
c. tactical planning d. none of these
25. Management functions include except ________________________
a. planning b. directing
c. organizing d. all of these
26. Marketing mix includes the following except ____________________________
a. price b. promotion
c. place d. Purchase
27. New product adoption process includes the following except _____________________
a. awareness b. interest
c. evaluation d. competition
28. Consumer decision making process begins with__________
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a. information search and evaluation b. problem recognition
c. purchasing process d. all of these
29. Development stage, introductory stage and declining stage are the stages of ______________
a. new product adoption c. new technology adoption
c. product life cycle d. all of the these
30. A person who makes money by starting or running business especially when it involves
taking financial risks is technically called ______________________
a. entrepreneur b. industrialist
c. farmer d. bureaucrat
31. ________plays a central role in management functions
a. directing b. downsizing
c. planning c. communication
32. Difference between assets and liabilities is known as _____________________
a. income statement b. owner’s equity
c. balance sheet d. cash flow statement
33. The amount by which expenditure of federal Govt. exceeds its revenue in a year is called ___
a. budget deficit b. budget surplus
34. Goods that have been produced but remain unsold _______________
a. inventory b. damaged
c. deficit d. none of these
35. Increase in money supply causes __________________
a. inflation b. deflation
c. boom d. none of them
36. _______________ are various forms of money.
a. currency notes b. coins
c. credit cards d. all of these
37. A company uses a segmentation strategy for its sandwiches based on characteristics such as
age, gender and income. It is using which group of segmentation variables?
a. demographic b. psychographic
c. geographic d. education
38. The process of dividing a total market into market groups so that persons within each group
have relatively similar product needs is called _______________________
a. segmenting b. differentiating
c. target marketing d. concentrating
39. When marginal cost is equal to marginal revenue, the firm should ___________________
a. spend more on advertising
b. produce less to decrease total costs
c. provide discounts to encourage purchases
d. stop producing additional units to maximize profits
40. Price is a key element in the marketing mix because it relates directly to
a. the size of the sales force b. quality controls
c. the generation of total revenue d. brand image
41. The oldest form of exchange ‘trading of products’ is known as ________________________
a. credit b. purchasing
c. barter d. pricing
42. _________________is a modern view of marketing based on the proposition of customer
orientation and coordination of all customer related activities and profit direction.
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a. marketing concept b. selling concept
c. product concept d. production concept
43. Currently, the dominant sector of Pakistan’s economy in terms of contribution to GDP is ___
a. agriculture b. services
c. manufacturing d. industrial
44. WTO stands for___________________
a. World Technology Organization b. World Time Organization
c. World Trade Organization d. World Tourism Organization
45. Training instruction for a small group, which employs such techniques as role-playing or
simulation etc. and encounters give and take sessions and problem-solving techniques is
called ___________________________
a. Career counseling
b. Workshop
c. Development Plan
d. On the job training
46. Barriers to career advancement include _______________________
a. Lack of time
b. Rigid job specifications
c. Short-term focus
d. All of the given options
47. The basic skills possessed by the individual that are required to give certain performance are
termed as _____________________________
a. Ability
b. Motivation
c. Experience
d. Performance
48. Using the __________ approach, managers evaluate organizational effectiveness.
a. External resource
b. Internal systems
c. Technical
d. Systems
49. A career stage in which one begins to search for work and finds a first job is:
a. Exploration period
b. Establishment period
c. Middle stage
d. None of the given options
50. Without proper feedback about an employee’s effort and its effect on performance, we run
the risk of decreasing his/ her _________.
a. Salary
b. Experience
c. Motivation
d. Performance appraisal
51. The _____ problem occurs when supervisors tend to rate all their subordinates consistently
high.
a. Central tendency
b. Leniency
c. Strictness
d. Halo effect
52. Currently Organizations are providing benefits to their employees;
a. To attract new blood in the organization
b. To create stronger customer relationship
c. To enhance the market share
d. All of the above
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53. Following are all examples of direct compensation EXCEPT;
a. Pension
b. Salary
c. Bonus
d. Income
54. To be effective, leaders must provide a _________________that is a general statement of the
organization’s intended direction that evokes positive emotional feelings in organization
members.
a. Vision
b. Mission
c. Goal
d. Declaration
55. Goal setting is ______________________________________
a. Top down process
b. Bottom up process
c. A process of top down support and bottom up development
d. A function of senior management
56. When the firm changes the way it operates, the process is known as
a. Downsizing
b. Brain drain
c. Restructuring
d. Outsourcing
57. Which one is not included in the hiring process?

a. Recruitment
b. Socialization
c. Selection
d. Job specification
58. Extents of individual freedom and discretion employees have in performing their jobs is
Known as
a. Capitation
b. Flextime
c. Empowerment
d. Autonomy
59. What is meant by the term 'management by objectives?
a. A system of giving the authority to carry out certain jobs by those lower down the
management hierarchy
b. The system of management that is based on bringing together experts into a team
c. The setting of objectives to bring about the achievement of the corporate goals
d. The control of the organization by those in the 'head office'
60. An advantage of recruitment from outside the company is
a. that it is cheaper than internal recruitment
b. that there is no need to advertise the vacancy
c. that it brings in new experience and skills to the firm
d. that it avoids jealousy within the firm
61. When designing his hierarchy of needs triangle Maslow did NOT include one of these. Was
it?
a. Good wages and salaries and working conditions
b. The need to feel secure at work with adequate financial rewards such as pensions
to assist one later in life
c. The need to build a career path
d. Opportunities for team working and social events that allow a sense of belonging
to emerge
62. The first formal stage of the disciplinary procedure is
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a. Written Verbal Warning
b. Written Warning
c. Employee Separation
d. Show-Cause Notice
63. To Become a Leader do all except

a. Build Your Power Base
b. Develop Your Judgment
c. Use Your Management Skills
d. Do not trust anyone
64. Alternative work arrangements include all of the following EXCEPT;

a. Part-time work
b. Flexible hours
c. On-site child care
d. Job sharing
65. Mr. Ahmed is a cashier and he feels dissatisfied at work. What best justifies this situation?
a. His job may not be structured to suit his preferences
b. It involves physical toughness
c. It requires mental toughness
d. It involves too much customer interaction
66. Organizational efficiency is expressed as:

a. Planning for long-run goals
b. Making the best use of scarce resources
c. Goal attainment
d. Meeting deadlines
67. Which one is not basic component of OB (Organizational Behavior) Model?
a. Organization
b. Group
c. Team
d. Individual
68. Essential component of an organization is:
a. Team
b. Structure
c. Individual
d. None of the given options
69. Appraisal of a worker’s performance can be described as:

a. Planning Activity
b. Organizing Activity
c. Controlling Activity
d. Leading Activity
70. Process of working with different resources to accomplish organizational goals is known as
a. Strategic management
b. Human Resource management
c. Management
d. Team work
71. The concept of how a person behaves in a group can be attributed to:
a. Thermodynamics
b. Group Dynamics
c. MBO (Management by objectives)
d. Group Behavior
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72. In general, according to Sales Tax Act 1990, tax period is a period of
a. one month
b. six months
c. nine months
d. one year
73. The due date to furnish a return at the end of the tax period is the _____ day of the following
month.
a. 7th
b. 10th
c. 15th
d. 18th
74. General Sales Tax (GST) is charged on
a. Selling Price
b. Retail Price
c. Manufacturing Cost
d. None of these
75. Selling Price is equal to
a. Retail Price + GST

b. Retail Price − GST
c. Manufacturing Cost + GST
d. Manufacturing Cost − GST
76. According to Income Tax Ordinance 2001, the Normal tax year is a period of twelve months
from _____ to _____.
a. 1 January, 31 December
b. 1 April, 30 March
c. 1 July, 30 June
d. 1 September, 31 August
77. The income of a resident person is computed by taking into account amounts that
are:I. Pakistan-source income and II. Foreign-source income
a. I only
b. II only
c. I + II
d. I − II
78. The income of a non-resident person is computed by taking into account amounts that are:
I. Pakistan-source income and II. Foreign-source income
a. I only
b. II only
c. I + II
d. I − II
79. Retailer means a person supplying goods to __________ for the purpose of consumption.
a. departmental stores
b. general public
c. wholesaler
d. shops
80. Which from the following taxes is not included in the Retail Price?
a. Sales tax
b. Excise duty
c. Utilities
d. Capital value tax
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81. Value of supply is equal to
a. Taxable Supply
b. Taxable supply + All Taxes
c. Taxable Supply + All taxes + Duty Paid
d. Taxable Supply + All taxes − Duty Paid
82. For the purposes of the imposition of tax and the computation of total income, all income
shall be classified under the following heads except
a. donation
b. salary
c. income from property
d. income from business
83. _________means any amount received or receivable by the owner of land or a building as
consideration for the use or occupation of, or the right to use or occupy, the land or building,
and includes any forfeited deposit paid under a contract for the sale of land or a building.
a. Income
b. rent
c. deposit
d. advance
84. Any income from the hire or lease of tangible movable property will be added to the head
a. income from property

b. income from moveable property
c. capital gains
d. income from business
85. A person accounting for income chargeable to tax under the head "Income from Business" on
an accrual basis shall derive income when it is due to the person and shall incur expenditure
when it is payable by the person is called ________
a. Accrual tax accounting

b. Accrual accounting
c. Accrued accounting
d. Accrual basis accounting
86. _________ means labor costs directly related to the manufacture or production of stock-in
trade
a. Labor cost
b. cost of labor
c. direct labor cost
d. indirect labor cost
87. For the purpose of recovering any tax due by a taxpayer, the __________may serve upon the
taxpayer a notice in the prescribed form requiring him to pay the said amount within such
time as may be specified in the notice.
a. Inspector inland revenue

b. Inland revenue officer
c. Commissioner
d. Assistant Commissioner
88. Pakistan Fiscal year starts from:
a. 1st September
b. 1st January
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c. 1st April
d. 1st July
89. Which is provincial tax in Pakistan?
a. Excise tax
b. Sales Tax
c. Import Duty
d. Motors token tax
90. Corporate tax is levied on:
a. Landlords
b. Municipal corporation
c. Joint stock companies
d. Importers
91. If we deduct direct tax from personal income, we get:
a. Net national income

b. Personal saving
c. Disposable income
d. Per capita income
92. The largest part of national income is
a. Consumption
b. Investment
c. Transfer payments
d. Saving
93. The most important source of a government is:
a. Foreign loans
b. Taxes
c. Printing of new money
d. Sale of government property
94. In Pakistan, taxes are levied by:
a. Prime minister of Pakistan

b. President of Pakistan
c. Federal Cabinet of ministers
d. National Assembly
95. Government finance is called
a. National Finance
b. Public finance
c. Private finance
d. Both a and b
96. A direct tax is that which:
a. Is heavy burden on the tax payer

b. Can be directly deposited in the banks
c. Cannot be evaded
d. Is paid by the person on whom it is levied
97. In Pakistan government budget is prepared by:
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a. National Assembly
b. President of Pakistan
c. Ministry of Finance
d. State Bank of Pakistan
98. Taxes on commodities are :
a. Direct taxes
b. Indirect taxes
c. Progressive taxes
d. Proportional tax
99. Govt. prepares its budget:
a) Weekly
b) Monthly
c) Annually
d) Quarterly
100. DU PONT Analysis deals with:

(a) Analysis of Current Assets
(b)Analysis of Profit
(c)Capital Budgeting
(d) Analysis of Fixed Assets.
101. XYZ Ltd. has a Debt Equity Ratio of 1.5 as compared to 1.3 Industry average. It means
that the firm has:
(a) Higher Liquidity
(b)Higher Financial Risk
(c)Higher Profitability
(d)Higher Capital Employed.
102. Ratio Analysis can be used to study liquidity, turnover, profitability, etc. of a firm. What
does Debt-Equity Ratio help to study?
(a)Solvency
(b)Liquidity
(c)Profitability
(d) Turnover
103. In Inventory Turnover calculation, what is taken in the numerator?

(a) Sales
(b)Cost of Goods Sold
(c)Opening Stock
(d) Closing Stock.
104. A firm has Capital of Rs. 10,00,000; Sales of Rs. 5,00,000; Gross Profit of Rs. 2,00,000
and Expenses of Rs. 1,00,000. What is the Net Profit Ratio?
(a)20%
(b) 50%
(c)10%
(d)40%
105. XYZ Ltd. has earned 8% Return on Total Assests of Rs. 50,00,000 and has a Net Profit
Ratio of 5%. Find out the Sales of the firm.
(a) Rs. 4,00,000,
(b)Rs. 2,50,000
(c)Rs. 80,00,000
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(d)Rs. 83,33,333.
106. Suppliers and Creditors of a firm are interested in

(a)Profitability Position
(b)Liquidity Position
(c)Market Share Position
(d) Debt Position
107. Financial Planning deals with:
(a) Preparation of Financial Statements
(b)Planning for a Capital Issue
(c) Preparing Budgets
(d)All of the above.
108. Financial planning starts with the preparation of:

(a) Master Budget
(b) Cash Budget
(c) Balance Sheet
(d)None of the above.
109. Which of the following is not shown in Cash Budget?

(a)Proposed Issue of Capital
(b) Loan Repayment
(c) Interest on loan
(d) Depreciation.
110. Which of the following may not be apart of projected Financial Statements?
(a) Projected Income Statement
(b) Projected Trial Balance
(c) Projected Cash Flow Statement
(d) Projected Balance Sheet.
111. Process of Financial Planning ends with:

(a) Preparation of Projected Statements
(b) Preparation of Actual Statements
(c) Comparison of Actual with Projected
(d) Ordering the employees that projected figures come true.
112. Which of the following is not true for cash Budge?

(a) That shortage or excess of cash would appear in a particular period
(b) All inflows would arise before outflows for those periods
(c) Only revenue nature cash flows are shown
(d) Proposed issue of share capital in shown as an inflow
113. Capital Budgeting is a part of:

(a)Investment Decision
(b) Working Capital Management
(c) Marketing Management
(d) Capital Structure.
114. Capital Budgeting deals with:

(a) Long-term Decisions
(b) Short-term Decisions
(c) Both (a) and (b)
(d) Neither (a) nor (b).
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115. Which of the following is not used in Capital Budgeting?
(a) Time Value of Money
(b) Sensitivity Analysis
(c) Net Assets Method
(d) Cash Flows.
116. Capital Budgeting Decisions are:
(a) Reversible
(b) Irreversible
(c) Unimportant
(d)All of the above.
117. Savings in respect of a cost is treated in capital budgeting as:

(a) An Inflow
(b) An Outflow
(c) Nil
(d) None of the above.
118. Risk in Capital budgeting is same as:

(a) Uncertainty of Cash flows
(b) Probability of Cash flows
(c) Certainty of Cash flows
(d) Variability of Cash flows
119. Which of the following is a risk factor in capital budgeting?

(a) Industry specific risk factors
(b) Competition risk factors
(c) Project specific risk factors
(d) All of the above
120. Cash Budget does not include
(a) Dividend Payable
(b)Postal Expenditure
(c) Issue of Capital
(d)Total Sales Figure.
121. Which of the following is not a motive to hold cash?

(a) Transactionary Motive
(b)Precautionary Motive
(c)Capital Investment
(d)None of the above
122. Cheques deposited in bank may not be available for immediate use due to
(a) Payment Float
(b)Receipt Float
(c) Net Float,
(d)Playing the Float.
123. Difference between between the bank balance as per Cash Book and Pass Book may be
due to:
(a) Overdraft
(b) Float
(c) Factoring
(d)None of the above.
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124. Concentration Banking helps in
(a) Reducing Idle Bank Balance
(b)Increasing Collection
(c)Increasing Creditors
(d)Reducing Bank Transactions.
125. Deep Discount Bonds are issued at

(a)Face Value
(b)Maturity Value
(c)Premium to Face Value
(d)Discount to Face Value.
126. Principal value of a bond is called the

(a)Maturity Value
(b)Issue Price
(c)Par Value
(d)Market Price.
127. If the required rate of return of a particular bond is less than coupon rate, it is known as
(a)Discount Bond
(b)Premium Bond
(c)Par Bond
(d)Junk Bond.
128. Market interest rate and bond price have

(a)Positive relationship
(b)Inverse relation
(c)No relationship
(d)Same relationship
129. In the formula ke (D1/P0) + g, D1/P0 refers to

(a)Capital gain yield
(b)Dividend yield
(c)Interest yield
130. The rate of interest payable on a bond is also called

(a)Effective Rate of Interest
(b)Yield to Maturity
(c)Coupon Rate
(d)Internal Rate of Return.
131. A long-term bond issued with collateral is called

(a)Junk Bond
(b)Treasury Bills
(c)Debenture
(d)Preference Share.
132. If Coupon rate is less than Required Rate of Return; as the maturity approaches the
discount on bond
(a)Increases
(b)Decreases
(c)Remains Constant
(d) None of the above.
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133. An investor buys a bond today and sells after 3 months the rate of return realised is
known as
(a)Yield to Maturity
(b)Current yield
(c)Holding Period Return
(d) Required Rate of Return.
134. Net Profit Ratio Signifies:

(a) Operational Profitability
(b) Liquidity Position
(c) Big-term Solvency
(d)Profit for Lenders.
135. In Ratio Analysis, the term Capital Employed refers to:

(a)Equity Share Capital
(b)Net worth
(c)Shareholders' Funds
136. In Net Profit Ratio, the denominator is

(a)Net Purchases
(b)Net Sales
(c) Credit Sales
(d) Cost of goods sold.
137. The correct form of accounting equation is

a. Assets + Liabilities = Equity
b. Assets – Liabilities = Equity
c. Assets – Receivable = Equity
d. Assets + Receivable = Equity
138. A systematic way to maintain the books of accounts is called_________?
a. Accountancy
b. Book Keeping
c. Economics
d. Auditing
139. Modern system of book keeping is called______________?
a. Double entry system
b. American system
c. Single entry system
d. Italic system
140. Discount received is an:
a. Asset
b. Expense
c. Liability
d. Revenue
141. Obligations of the Business are known as___________?
a. Liabilities
b. Revenues
c. Expenses
d. Asset
142. The amount invested by the proprietor to start the business is called:
a. Drawings
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b. Capital
c. Financing
d. All of them
143. When goods, in which business deals, are sold, it is called___________?
a. Purchases
b. Return inward
c. Sales
d. Return outwards
144. Sales return is also known as____________?
a. Return outward
b. Return inward
c. Return received
d. Return Payed
145. The concession received on the price of defective goods is called:
a. Discount
b. Cash discount
c. Allowance
d. Trading discount
146. Building and furniture using in a business are called ____________?
a. Current asset
b. Fictitious asset
c. Tangible asset
d. Fixed assets
147. Assets having physical existence are called ___________?
a. Current asset
b. Intangible asset
c. Tangible asset
d. Liquid asset
148. The assets which have some market value are called ____________?
a. Fixed asset
b. Quick asset
c. Fictitious assets
d. Real assets
149. Debts which are payable within a year are called _____________?
a. External b. Fixed c. Current d. Liquid

liabilities liabilities liabilities Liabilities
150. The unsold goods are ______________?
a. Equity b. Sale return c. Inventory d. Purchases
151. Cash sale to Mr. A will credited to
a. Mr. A’s b. Cash account c. Sales account d. Goods account

account
152. Carriage inward is
a. Indirect b. Direct expense c. Selling d. Operating

expense expense expense
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153. Debtors are also known as
a. Owners b. Accounts c. Bill payable d. Accounts

receivable payable
154. Net sales are equal to sales minus
a. Return inward b. Return c. Cost of goods d. Carriage on

outward sold sale
155. Transaction which is an accountant forget to record is known as
a. Errors of b. Errors of c. Errors of d. None of these

omission commission equipments
156. Bad debt arises from
a. Sale on b. Cash sales c. Account d. Account

account receivable payable
157. Shares of listed companies are traded in the
a. stock b. option market c. future d. All of them
exchange exchange
158. What from the following is an integral part of business?
a. Profit b. Risk c. Certainty d. Both a & b
159. What standards are used to prepare financial statements by most of the countries
and companies?
a. International b. International c. International d. International
Financial Financial Accounting & Risk
Reporting Accounting Auditing Management
Standards Standards Standards Standards
160. The accounting process of allocation cost of intangible assets is called

a. Amortization b. Depletion c. Going Residual Value
Concern d.
161. Depreciation is normally charged as
a. payable b. Receivable c. Expenses d. Advances
162. Returns of goods by the customer should be debited to:

a. Sales b. Customer c. Purchases d. Cash
return A/c return A/c A/c
A/c
163. All those accounts which keeps the records of expenses, income, profit & loss are called
a. Personal A/c b. Real A/c c. Nominal A/c d. None of them
164. Categories of accounts under American approach are

a. 3 b. 4 c. 5 d. 6
165. Goods lost by fire should be credited to
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a. Goods account b. Purchase c. Drawings d. None of these
account account
166. An entry in which more than one account is debited and more than one account is
credited is called
a. Single entry b. Double entry c. Compound d. Simple entry
entry
167. The cheque which is returned by the bank unpaid is called

a. Cross cheque b. Bearer cheque c. Order cheque d. Dishonour
cheque
168. The act of singing at the back of the cheque in order to transfer it to somebody else is
called
a. Endorsement b. Drafting c. Closing d. None of these
169. Bank reconciliation statement is usually prepared

a. Any time b. Weekly c. Monthly d. Yearly
170. Cheque deposited into bank but not collected are called
a. Unpresented b. Uncredited c. Dishonour d. None of these
cheque cheque cheque
171. When a person sells his bill of exchange to bank before maturity it is called
a. Renewal b. Retirement c. Endorsement d. Discounting
172. Retirement of a bill of exchange means

a. Payment at b. Payment after c. Payment d. None of these
maturity date maturity date before
maturity date
173. Which of the following disclose the financial position of a firm?
a. Income b. Owner’s c. Balance sheet d. Cashflow
statement equity statement
statement
174. The excess of current assets over current liabilities is called
a. Working b. Surplus c. Drawings d. None of these
capital
175. The legal tenure of a bill of exchange is

a. 60 days b. 70 days c. 80 days d. 90 days
176. Regularity bodies working in Pakistan are?
a. SBP b. SECP c. NBFI’s d. a & b
177. Which bank focus on promoting economic growth rather than earning profit?
a. Microfinance b. Islamic c. Central d. Commercial
178. A cheque is paid on?
17
a. Demand b. Promise c. Maturity d. None of these
179. Which of the followings called Banker’s Cheque?
a. Pay Order b. Demand Draft c. Treasury Bills d. Bill of Exchange
180. When a customer “Pledges” his goods or documents with bank the relationship is known
as?
a. Mortgagor b. Bailor c. Pawner d. Lessor
Mortgagee Bailee Pawnee Lessee
181. Grace Days are allowed on the maturity of?

a. Promissory Note b. Cheque c. Treasury Bills d. Bill of Exchange
182. Which one is the not a reason of dishonoring of a cheque?

a. Solvency b. Figure Alteration c. Frozen Account d. Inadequate Funds
183. _______ Account is also known is “Demand Deposit A/c”?
a. Saving A/c b. home Saving A/c c. Fixed A/c d. Current A/c
184. Bank provide overdraft facilities to its customers under ______ Account
a. Saving A/c b. Current A/c c. home Saving d. Fixed A/c
A/c
185. CAPM stands for
a. Current Asset b. . Current Asset c. Capital Asset d. None of these
Pricing Model Predictor Predictor
Model Model
186. Par value can also be named as....
a. Redemption b. Market valued c. Facevalue d. All of these

value
187. Which of the following enjoys limited liability?
a. A sole b. A general c. A corporation d. All of these

proprietorship partnership
188. The purpose of financial markets is to:
a. increase the price of b. Allocate savings c. control inflation d. Lower the yield on
common stocks efficiently bonds
189. Financial markets (year or less) that deals with short term securities called
a. Capital Market b. Secondary Market c. Stock Market d. Money Market
190. Agency problems are least likely to arise in which organizational form?
a. Sole proprietorship b. partnership c. Private firm d. Public firm
191. _____ measures the firm’s ability to meet its short term obligations
18
a. Liquidity Ratio b. Profitability Ratio c. Leverage Ratio d. Current Ratio
192. Which one is a not current asset?
a. Trade debtors b. Bank overdraft c. Marketable securities d. Cash in hand
193. Liquid Ratio is also known as _____

a. Quick Ratio b. Acid Test Ratio c. Both a&b d. None of
these
194. Net profit ratio is also called _____
a. Net profit Margin b. Profit after taxes c. Operating profit d. None of these

margin
195. _____ is the total of direct materials cost, direct labour cost and chargeable expenses
a. Factory cost b. Prime cost c. direct cost d. Total cost
196. Which of the following will NOT equate the future value of cash inflows to the present
value of cash outflows?
a. Internal rate of b. Discount rate c. Multiple d. Profitability

return Internal rate of index
return
197. 84. When FOH is under applied and charged to Net Profit, the treatment would be:
a. Under applied b. Under applied c. Under applied d. None of these
Add net profit Less net profit Less operating
expense
198. Factory overhead cost is the total of?
a. All indirect b. All direct costs c. indirect and d. All specific

costs direct costs costs
199. Fixed cost per unit decreases when:
a. Production b. Production c. Variable cost per d. Variable

volume volume decrease unit decreases cost per unit
increases increases
200. Prime cost + Factory overhead cost is:
a. Conversion b. Production c. Total cost d. None of these

cost cost
201. The cost expended in the past that cannot be retrieved on product or service
a. Product Cost b. Relevant Cost c. Irrelevant Cost d. Sunk Cost
19
202. Islamic banking structure is based on
a. Premium sharing b. Interest sharing c. Risk sharing d. None of these
203. A general rise in the prices of goods and services over time?
a. Inflation b. Deflation c. Reinflation d. Stagflation
204. What does GDP stand for?

a. Good b. Gross c. Global d. Global
Distributio Domestic Detection Data Pool
n Practice Product Probability
205. Which of the following business type, has to pay double taxes to the government?
a. Sole b. Partnership c. Joint stock d. None of these
proprietorship company
206. Simply defined is satisfying human and social needs profitably
a. Marketing
b. Marketing mix
c. Market
d. Management
207. States of deprivation that can be: Physical—food, clothing, warmth, safety: Social—
belonging and affection : Individual—knowledge and self-expression are known as
a. Needs
b. Wants
c. Wish
d. Demand
208. Form that needs take as they are shaped by culture and individual personality
a. Needs
b. Wants
c. Wish
d. Demand
209. Wants backed by buying power
a. Needs
b. Wants
c. Wish
d. Demand
210. Some combination of products, services, information, or experiences offered to a market
to satisfy a need or want are called
a. Marketing value
b. Marketing image
c. Market offerings
d. Marketing myopia
211. Focusing only on existing wants and losing sight of underlying consumer needs is
a. Marketing value
b. Marketing image
c. Market offerings
d. Marketing myopia
212. The act of obtaining a desired object from someone by offering something in return is
a. Exchange
20
b. Transfer
c. Sale
d. Swapping
213. The set of actual and potential buyers of a product
a. Market
b. Product
c. Targeting
d. Segments
214. The art and science of choosing target markets and building profitable relationships with
them is
a. Financial Management
b. Marketing management
c. Human Resource Management
d. Management
215. Which of the following refers to dividing the markets into segments of customers
a. Value proposition
b. Target Market
c. Market segmentation
d. Marketing Offering
216. Set of benefits or values a company promises to deliver to customers to satisfy their
needs
a. Value proposition
b. Target Market
c. Market segmentation
d. Marketing Offering
217. Which of the following is the idea that consumers will favor products that are available or
highly affordable
a. Production concept
b. Marketing concept
c. Selling concept
d. Product concept
218. Which one is the idea that consumers will favor products that offer the most quality,
performance, and features. Organization should therefore devote its energy to making
continuous product improvements.
c. Selling concept
d. Product concept
219. Which concept is of the idea that a company should make good marketing decisions by
considering consumers’ wants, the company’s requirements, consumers’ long-term
interests, and society’s long-run interests
c. Selling concept
21
d. Societal marketing concept
220. Comprehensive plan that communicates and delivers the intended value to chosen
customers.
a. Marketing mix
b. Market integration
c. Integrated marketing program
d. Marketing buzz
221. Which is the overall process of building and maintaining profitable customer
relationships by delivering superior customer value and satisfaction
a. Customer promise
b. Customer engagement
c. Customer friendship
d. Customer relationship management
222. Following is used to direct and coordinate the marketing effort and is created at the
strategic and tactical level
a. Planning
b. Strategic Plan
c. Marketing Plan
d. All of the above
223. The systematic design, collection, analysis, and reporting of data and findings relevant to
a specific marketing situation facing the company.
a. Marketing Research
b. Design research
c. Relevant research
d. Situation research
224. Already collected data can be used for a research which is called
a. Secondary Data
b. Primary data
c. Available data
d. Dataset
225. _______________is the perceived monetary value of the bundle of economic, functional,
and psychological benefits customers expect from a given market offering because of the
product, service, people, and image
a. Customer perceived value
b. Customer Lifetime Value
c. Customer Determining Value
d. Customer base
226. ___________ is the totality of features and characteristics of a product or service that
bear on its ability to satisfy stated or implied needs.
a. Quality
b. Standard
c. Need
22
d. Performance
227. In a recent strategic move, Mobilink has acquired Warid network. This is an example of
a. Horizontal Integration b. Vertical Integration
c. Both of above d. None of the above
228. The main purpose of adopting forward vertical integration strategy is to

a. Gain better and direct access to end users and better market visibility
b. Achieve the same scale economies as wholesale distributors and/or retail dealers
c. Control prices in the industry
d. To improve production efficiency
229. A Good example of vertical integration is
a. A global public accounting firm acquiring a small local or regional public accounting
firm
b. A large supermarket chain transforming into convenience food stores
c. A crude oil refiner purchasing a firm engaged in drilling and exploring for oil
d. Sony and Ericson combining their technological capabilities
230. Product differentiation refers to the:
a. ability of the buyers of a product to negotiate a lower price.
b. belief by customers that a product is unique.
c. response of incumbent firms to new entrants.
d. fact that as more of a product is produced the cheaper it becomes per unit.
231. A sustained or sustainable competitive advantage requires that:
a. the value creating strategy must be in a formulation stage.
b. competitors must be simultaneously implementing the strategy.
c. other companies must not be able to duplicate the strategy.
d. average returns must be earned by the company.
232. Introducing present products or services into new geographic areas is referred to as
a. Market Development Strategy b. Product Development strategy
c. Market Penetration Strategy d: Retrenchment Strategy
233. Seeking ownership or increased control of a firm’s suppliers is known as

a. forward vertical integration. b.backward vertical integration.
c. Horizontal Integration d. Diversification strategy
234. _______________is not a feature of Total Quality Management Paradigm.
a. Accurate measurement of the business process
b. Concern for continual improvement
c. Improvement in the quality of everything
d. Centralization of decision making
235. Organizational culture is NOT __________________
a. Perception
b. Shared
c. value based
d. Quantifiable
236. Which of the following is relatively difficult to change than the rest?
a. Organizational Culture
b. Organizational Structure
c. Organizational strategy
d. Technology
237. Direct supervision of the workforce is the responsibility of
23
a. First Line Managers
b. Middle Line Managers
c. Top Management
d. Board of Directors
238. Organizational Design is a process of making decisions relating to all of the following
EXCEPT
a. Departmentalization
b. Chain of command
c. Organizational Behavior
d. Centralization and decentralization
239. Grouping jobs on the basis of territory/region is called
a. Functional Departmentalization
b. Process Departmentalization
c. Geographical Departmentalization
d. Customer Departmentalization
240. In order to enhance creativity and innovation within organizations, organizations need to
apply all of the following EXCEPT
a. Free flow of information
b. Centralization
c. Employee Empowerment
d. Low Formalization
241. Chenab Textiles, being a leading textile manufacturer and exporter took an initiative to
take control of the distribution by making concept stores under brand name of ChenOne. This
growth strategy is called
a. Backward vertical integration
b. Forward vertical integration
c. Concentration
d. None of the above
242. Using a cost or quality advantage to exploit a particular market segment rather a larger
market is called
a. Cost Leadership Strategy
b. Differentiation Strategy
c. Focus Strategy
243. Zong has relatively low market share but high market growth rate. Where would you
place Zong on BCG Matrix ?
a. Stars
b. Cash Cows
c. Question Marks
d. Dogs
244. All of the following are characteristics of Change-Capable Organizations, EXCEPT
a. support to day-to-day improvements and changes.
b. Integrating Technology
c. Tall organizational structure
d. Diverse teams.
245. Interloop is planning to raise its production capacity from 10,000 units a month to
100,000 a month in a bid to reduce its per unit production cost. What exactly are they aiming
for ?
a. Economies of Scope b. Market Penetration
c. Economies of scale d. None of the above
246. Which of the following has more long term orientation in relation to others?
24
a. Mission b. Work Practice
c. Policy d. Strategy
247. Following are the benefits of mission statements, EXCEPT
a. To help organizations create unanimity of purpose
b. To help in resource allocation.
c. To provide competitive advantage to competitor organizations.
d. To serve as a focal point for the work structure
248. The following paradigm of Management particularly emphasizes the importance of
finding ‘one best way’ to do every job.
a. Strategic Management b. Scientific Management
c. Marketing Management d. Organizational Behavior
249. Authority within organizations is
a. The concept that a person should have one boss and should report only to that person.
b. The rights inherent in a managerial position to tell people what to do and to expect
them to do it.
c. The obligation or expectation to perform from the workforce.
d. All of the above
250. _______________ means that decision making authority is being pushed down to the
managers who are closest to the action
a. Centralization b. Decentralization
c. Employee Empowerment d. All of the above
251. Organic Organizational Structures are best suited for
a. Stable and Simple environments b. Dynamic and Complex environments
c. Centralized organizations d.None of the above
252. Following is NOT a Corporate level Strategy
a. Cost Leadership b. Vertical integration
c. Horizontal integration d. Diversification
253. Organizations with high market share and low market growth rate are placed in
_________ Quarter of BCG Matrix.
a. Cash Cows b. Question Marks
c. Stars d. Dogs
254. Attempting to create a unique and distinctive product or service for which customers will
pay a premium price is known as
a. Differentiation Strategy b. Focus Strategy
c. Retrenchment Strategy d. None of the above
255. Following types of organizations are characterized by free flow of communication
a. Tall Organizations b. Lean organizations
c. Mechanistic Organizations d. Strong Departmentalization
256. A firm's mission
a. is a statement of a firm's business in which it intends to compete and the customers which
it intends to serve.
b. is an internally-focused affirmation of the organization's financial, social, and ethical
goals.
c. is mainly intended to emotionally inspire employees and other stakeholders.
d. is developed by a firm before the firm develops its vision.
257. The general environment of the organizations typically DO NOT include
a. Demographic factors. b. Sociocultural factors.
c. Substitute products or services. d. Technological factors.
258. To be a core competency, a capability must satisfy all of the following criteria EXCEPT:
a. having number of substitutes. b. be hard for competing firms to duplicate.
25
c. be technologically innovative. d. be valuable to customers.
259. The __________ environment is composed of elements in the broader society that can
influence an industry and the firms within it.
a. Competitor b. General
c. Sociocultural d. Industry
260. Tangible resources include:
a.assets that are people dependent such as know-how.
b. assets that can be seen and quantified.
c.organizational culture.
d. a firm's reputation
261. Most crucial and first step in marketing process is
a. Designing a marketing strategy
b. Create customer delight
c. Understanding customer needs and wants
d. Capturing value from customers
262. Mr. Junaidis opening its retail kurta outlets across different regions around the world
According to Ansoff’s Product-Market Expansion Grid what kind of strategy is this
a. Product development strategy
b. Diversification Strategy
c. Market Development strategy
263. ABC Inc. is planning to launch a new war-strategy-based computer game for the male
teenagers. What kind of segmentation is this?
a. Demographic segmentation
b. Socio-cultural segmentation
c. Lifestyle segmentation
d. Geodemographic segmentation
264. To create profits, company must
a. Create loyal customers
b. Increase market share of market
c. Capture lifetime vale of customer
d. All of above
265. Following are examples of internal consumer influences, EXCEPT
a. Learning
b. Demographic; Income and Social class
c. Perception and memory
d. Motivation
266. Of the four Ps of the marketing mix, “place” includes ________.
a. Value chain b. Public relations
c. Distribution centers d. Financial resources
267. Tanya and her marketing team at a fast food restaurant are breaking their company's
target audience into groups that have shared needs that are different from the needs shared by
other groups. They are engaged in ________.
a. Market targeting b. Product Positioning
c. Market segmentation d. Product Placement
268. -------------- refers to the development of a distinct image for the product in the mind of
the consumer.
a. Targeting b.Segmenting
c. Placement d.Positioning
269. Which of the following is an example of a non-adjusting event?
26
a. Sale of inventory for less than its carrying value shortly after the reporting period
b. Amounts received in respect of an insurance claim being negotiated at the period end
c. Destruction of a machine by fire after the reporting period
d. Bankruptcy of a major customer with a balance owing at the period end
270. When a lease transfers substantially all the risks and rewards of ownership to lessee, this
is called…
a. A finance lease
b. An operating lease
c. A buy-to-let agreement
d. A rental agreement
271. A leased asset should be depreciated over the…

a. Shorter of the lease term and the asset’s useful life
b. Longer of the lease term and the asset’s useful life
c. Entire lease term
d. Useful life of the asset
272. Operating leases are mostly ______ agreements.

a. Long term
b. Medium term
c. Short term
d. Verbal
273. Revenue of entity shall be measured at:
a. Cost of sales
b. Fair Value
c. Cost of production
274. When the outcome of the transaction involving the rendering of services cannot be
estimated reliably, then revenue shall:
a. Not be recognized
b. Recognized to the extent of expenses recognised are recoverable
c. Be deferred
d. Recognized fully irrespective of the outcome
e. None of the above
275. Revenue from sale of goods is recognized when:

a. The cash has been received for the sale of goods
b. The significant risks and rewards of ownership have been transferred to the buyer
c. Sale order has been received
276. Royalties should be recognised on:
a. Cash basis
b. Receipt basis
c. Payment basis
d. Accrual basis
277. Revenue accruing to an entity includes:

a. Investment capital flowing into an entity
b. Dividends paid by the entity
c. Gross inflow of economic benefits of ordinary activities
278. What is the term used to describe the time between the acquisition of assets for
processing and their realization in cash or cash equivalents?
27
a. Processing cycle
b. Turnover
c. Operating cycle
d. Turnaround
279. Cash payments to and on behalf of employees is an example of cash flows from
a. Operating activities
b. Financing activities
c. Investing activities
d. None of these
280. The principal revenue-producing activities of an entity are called…

b. Investing activities
c. Financing activities
d. None of these
281. In 2002 State Bank of Pakistan issued the First License of Islamic Bank
to………………………….
a. Burj Islamic Bank
b. Meezan Bank limited
c. Bank Islami
d. Dawood Islamic Bank
282. The framework of an Islamic financial system is based on elements of Shari'ah which
…………. Riba (Usury) and Gharar (uncertainty).
a. Tolerate
b. Prohibit
c. Allocate
d. Surrender
283. The category of haram is the … ….…status of prohibition in Islam.

a. Lowest
b. Medium
c. Moderate
d. highest
284. …………………is a joint enterprise or partnership structure in Islamic finance in which

partners share in the profits and losses of an enterprise.
a. Muswama
b. Salam
c. Musharakah
d. Itqad
285. In Musharka Contributions must be subject to profit sharing in ……………………agreed

between the partners.
a. Fix ratio
b. Any ratio
c. Variable ratio
d. Pre fixed
286. Diminishing Musharakah is a type of ……………………………..where one partner

purchases the other partner's share gradually.
a. Mudarbah
28
b. Murabah
c. Muswama
d. partnership
287. …………………could be defined as, the Exchange of a thing(subject matter) of value

with another thing of value, with mutual consent”
a. Sale
b. Purchase
c. Value
d. goods
288. For a valid sale the subject matter of sale should be in the………….at the time of Sale.
a. ownership of the seller

b. Ownership of the Purchaser
c. Possession of the third party
d. in the hand of Labor
289. The price of a sold things …………………………………… for a valid sale.
a. don’t certain
b. must be certain
c. always hidden
d. known to the seller only
290. Islamic Finance is an economical system based on

………………………………………….
a. Frequency
b. risk sharing
c. Profit
d. Fix rate of return.
291. ………………… is unjustified increment in borrowing or lending money, paid in kind or

in money above the amount of loan, as a condition imposed by the lender or voluntarily
by the borrower.
a. Ghurar
b. Inhamac
c. Riba
d. Risk
292. The word sharia means "the path“, these are the set of rules which are derived from
the…………………...
a. Quran & Hadis
b. Hadis Only
c. Quran only
d. Islamic History
293. The ability to work well with other people

a. Technical skills
b. Conceptual skills
c. Human skills
d. Planning skills
294. Doing things differently, exploring new territory, and taking risks
a. Marketing Management
b. Financial management
c. HRM
29
d. Innovation
295. Which of the following factors does not influence issue intensity?
a. Proximity to victim
b. Immediacy of consequences
c. Concentration of effect
d. The individual's locus of control
296. Which of the following is not an argument for social responsibility?
a. Ethical obligation
b. Lack of accountability.
c. Balance of responsibility and power
d. Possession of resources
297. Arranging and structuring work to accomplish an organization’s goals?
a. Planning
b. Organizing
c. Leading
d. Controlling
298. ___________is a process that involves defining the organization's objectives or goals,
establishing strategy, and developing a hierarchy of plans.
a. Managing
b. MBO
c. Informal planning
d. Planning
299. Plans that specify details on how overall objectives are to be achieved are
a. Standing
b. Strategic
c. Directional
d. Operational
300. Flexible plans that set out general guidelines are:
a. Directional
b. Strategic
c. Specific
d. Operational
301. An approach to setting objectives from top managers downward through the organization
is:
a. Stated objective
b. Real objective
c. MBO
d. Traditional goal setting
302. The process of monitoring, comparing, and correcting is called?
a. Controlling
b. Coordinating
c. Leading
d. Organizing
303. Assuring the right peoples are on the job & motivated
a. Planning
b. Leading
c. Organizing
d. Controlling
304. Thin out pool of applicants to find the best choice is called _________________
30
a. Recruiting
b. Training & development
c. Selection
d. Motivation
305. Teach the rules, regulations, goals, and culture of the company
a. Employee development
b. Employee Training
c. Career development
d. Orientation
306. Activities in HRM concerned with helping employees exert at high energy levels
a. Communications
b. Motivations
c. Employee maintenance
d. Compensation
307. Help employees to maximize their potential
a. Training & Development
b. Research & Development
c. Conflict Management
d. Strategic management
308. Determining what jobs need to be done and by whom
a. Structure
b. Strategy
c. Mission
d. people
309. Includes the development of replacement charts
a. Strategic planning
b. Succession planning
c. HR planning
d. none of above
310. Involves linking staffing levels to organizational goals
a. Downsizing
b. Rightsizing
c. Recruitment
d. Work Specialization
311. A selection device’s consistency of measurement is called
a. Validity
b. Reliability
c. Cut Score
d. none of above
312. Future-oriented training that focuses on employee personal growth
a. Employee training
b. Employee development
c. Job rotation
d. Change agent
313. Documents that outline how goals are to be accomplished?
a. Objectives
b. Goals
c. Plans
d. Strategies
314. Establish the organization’s overall goals
31
a. Strategic Plans
b. Operational Plans
c. Directional Plans
d. Specific Plans
315. Key element of MBO?
a. Goal specificity
b. Participative decision making
c. An explicit performance/evaluation period & feedback
d. All of the above.
316. A repetitive decision that can be handled by a routine approach?
a. Programmed Decision
b. Non-programmed Decision
c. Intuitive decision
d. Rational decision
317. What managers do to develop the organization’s strategies?
a. Stress Management
b. Talent management
c. Conflict Management
d. Strategic management
318. Arranging and structuring work to accomplish an organization’s goals?
a. Planning
b. Organizing
c. Leading
d. Controlling
319. The formal arrangement of jobs within an organization?
a. Organizational Design
b. Organizational Structure
c. Formalization
d. None of above
320. The number of employees who can be effectively and efficiently supervised by a
manager?
a. Span of Control
b. Unity of Command
c. Chain of Command
d. Work Specialization
321. Someone who can influence others and who has managerial authority?
a. Manager
b. Leader
c. Follower
d. Controller
322. The concept that a person should have one boss and should report only to that person.
a. Unity of Command
b. Leadership
c. Authority
d. Centralization
323. The degree to which decision making is concentrated at upper levels in the organization
a. Centralization
b. Decentralization
c. Employee Empowerment
d. Departmentalization
32
324. A SWOT analysis is an example of a:
a. Position analysis
b. Strategic analysis
c. Shareholder value analysis
d. Customer profitability analysis
325. Research has following characteristic/characteristics.
a. Data are collected systematically
b. Data are interpreted systematically
c. There is a clear purpose to find things out
d. All of the above.
326. To collect and analyse data from every possible case or group member (Entire
Population); this is termed a ___________.
a. Sample
b. Cluster
c. Quote
d. Census
327. The _____________ for any probability sample is a complete list of all the cases in the
population from which your sample will be drawn.
a. Sampling Frame
b. Sample Size
c. Sample Case
d. Sample Record
328. ______________ sampling involves you selecting the sample at regular intervals from
the sampling frame.
a. Simple random
b. Systematic
c. Cluster
d. Quote
329. ____________________ sampling enables you to use your judgement to select cases that
will best enable you to answer your research question(s) and to meet your objectives.
a. Quota Sampling
b. Cluster Sampling
c. Snowball sampling
d. Purposive Sampling
330. A ______________ variable changes in response to changes in other variables.
a. Mediator
b. Moderator
c. Independent
d. Dependent
331. _____________ data refer to data whose values cannot be measured numerically but can
be either classified into sets.
a. Numerical Data
b. Categorical Data
c. Interval Data
d. Ratio Data
33
332. To describe and compare the extent by which values differ from the mean, we use
__________
a. Standard Derivation
b. Mode
c. Correlation
d. Regression
333. _______________________ is supplementary material at the end of a book, article,
document or any other report, usually of explanatory, statistical or bibliographic nature.
a. Appendices
b. References
c. Discussion
d. Future Directions
334. Which one is not a Wireless communication technology?
a) WiFi c) BlueTooth.
b) WiMax d) LAN
335. Which function is not the responsibility of a good Financial Information System?
a) Budgeting b) Funds Management
c) Market Surveys d) Asset Management
336. Which of the following is NOT a cash outflow for the firm?
a. depreciation.
b. dividends.
c. interest payments.
d. taxes.
337. Which of the following are not among the daily activities of financial management?
a. sale of shares and bonds
b. credit management
c. inventory control
d. the receipt and disbursement of funds
338. Reserves & Surplus are which form of financing?
a. Security Financing
b. Internal Financing
c. Loans Financing
d. International Financing
339. The addition of all current assets investment is known as...
a. Net Working Capital
b. Gross Working capital
c. Temporary Working Capital
d. All of these
340. An asset is a-
a. Source of fund
b. Use of fund
c. Inflow of funds
d. none of the above.
341. Uses of funds include a (an):
34
a. decrease in cash.
b. increase in any liability.
c. increase in fixed assets.
d. tax refund.
342. Which of the following statements is correct?
a. If the NPV of a project is greater than 0, its PI will equal 0.
b. If the IRR of a project is 0%, its NPV, using a discount rate, k, greater than 0, will be 0.
c. If the PI of a project is less than 1, its NPV should be less than 0.
d. If the IRR of a project is greater than the discount rate, k, its PI will be less than 1 and its
NPV will be greater than 0.
343. In finance, "working capital" means the same thing as
a. total assets.
b. fixed assets.
c. current assets.
d. current assets minus current liabilities.
344. ____________ is defined as the length of time required to recover the initial cash out-lay.
a. Payback-period
b. Inventory conversion period
c. Discounted payback-period
d. Budget period
345. ____________ is the length of time between the firm’s actual cash expenditure and its
own cash receipt.
a. Net operating cycle
b. Cash conversion cycle
c. Working capital cycle
d. Gross operating cycle
346. _______________ refers to the length of time allowed by a firm for its customers to
make payment for their purchases.
a. Holding period
b. Pay-back period
c. Average collection period
d. Credit period
347. Amounts due from customers when goods are sold on credit are called _____________.
a. Trade balance
b. Trade debits
c. Trade discount
d. Trade off
348. The process which is concerned with the acquisition, financing and management of assets
is called
a. Capital Budgeting
b. Financial Management
c. Working Capital
d. Capital Structure
349. The major functions of a Financial manager are
35
a. Investment
b. Financing
c. Asset Management
d. All of the above
350. An individual authorized by another person, called the principal, to act in the latter’s
behalf is called
a. Management
b. Shareholder
c. Agent
d. All of above
351. The system by which the corporations are managed and controlled id called
a. Corporate Social Responsibility

b. Corporate Governance
c. Agency Theory
d. Financial Management
352. Interest paid (earned) on only the original amount, or principal borrowed (lent) is called
a. Simple Interest
b. Compound Interest
c. Discount
d. None of above
353. Interest paid (earned) on any previous interest earned, as well as on the principal
borrowed (lent) is called
a. Simple Interest
b. Compound Interest
c. All of above
d. None of above
354. The ratios that Show a firm’s ability to cover its current liabilities with its current assets
are called
a. Current Ratio
b. Financial Ratio
c. Leverage Ratio
d. Solvency Ratio
355. The ratios that Show a firm’s ability to meet current liabilities with its most liquid assets
are called
a. Current Ratio
b. Acid Test Ratio
c. Leverage Ratio
d. Solvency Ratio
356. Shows the extent to which the firm is financed by debt.
a. Current Ratio
b. Acid Test Ratio
c. Leverage Ratio
d. Debt to Equity Ratio
357. Shows the percentage of the firm’s assets that are supported by debt financing.
a. Current Ratio
36
b. Debt to Total Assets Ratio
c. Leverage Ratio
358. The following is the method of capital budgeting
a. Cost of Capital
b. Internal Rate of Return
c. Working Capital
d. Perpetuity
359. The real owners of a firm are the
a. Management
b. Agents
c. Shareholders
d. All of above
360. _____ is a system of marketing by which organizations communicate directly with target
customers to generate a response and/or a transaction.
a. Advertising
b. Sales promotion
c. Direct marketing
d. Publicity
361. The person to whom goods are sold on credit is called___________?

a. Buyer
b. Seller
c. Debtor
d. Creditor
362. When owner withdraw cash for its private use, it is called ___________?
a. Profit
b. Income
c. Expense
d. Drawings
363. Outstanding income will appear in balance sheet as?
a. A liability b. An income c. An expense d. An asset
364. All direct expenditures are taken to

a. Trading b. Profit and loss c. Balance sheet d. None of these
account account
365. The process of transferring business transactions from journal to ledger is called
a. Posting
b. Journalizing
c. Classifying
d. Entry
366. Income received in advance but not earned is call
a. Unearned b. Outstanding c. Accrued d. Prepaid
income expenses income expenses
37
MARKETING SPECIALIZATION
367. The major difference between a low-cost leader strategy and a focused low-cost strategy
is
a. Whether the product is strongly differentiated or weakly differentiated from rivals
b. The degree of bargaining power that buyers have
c. The size of the buyer group that a company is trying to appeal to
d. No major difference between them
368. The marketing emphasis of a company pursuing a low-cost leadership strategy usually is
to
a. Beat rival brands on price with comparable features
b. publicize differentiating features and charge a premium price
c. Out-advertise rivals and make frequent use of discount coupons
d. Beat competition on product quality
369. Advertising is a major promotion mix ingredient that is a...?
a. Paid form of personal communication.
b. Paid form of non personal communication.
c. Non paid form of personal communication.
d. Non paid form of non personal communication.
370. A Bank airs a series of radio ads that claim "We are the listening bank." This campaign
would be best described as __________ advertising.
a. Pioneer
b. Target
c. Product
d. Institutional
371. Advertising that promotes organizational images, ideas, and political issues is
__________ advertising.
a. defensive
b. Competitive
c. comparative
d. Institutional
372. Soft drink companies advertise that their products beat the competition in national "taste
tests," and they refer to the rival brands by name. This type of advertising is best
described as…?
a. Pioneer.
b. Competitive.
c. comparative.
d. Selective.
373. The initial stage in the development of an advertising campaign is…?
a. Creating the message.
b. Setting the budget.
c. Identifying and analyzing the advertising target audience.
d. Creating the advertising platform.
374. The target audience for an advertising campaign is the ….?
a. Information base on which to develop the campaign.
b. Location and geographic distribution of persons.
c. Group of people toward whom the advertisements are directed.
d. Overall goal of the advertising campaign.
375. Purposes of advertising agencies include:
a. Advise & counsel on marketing strategy
b. Advise & counsel on advertising and media strategy
38
c. Help & counsel on sales promotion & other communication tasks
d. All of the given options
376. _______ is the process and activities people engage in- when searching for, purchasing,
using, evaluating and disposing of products and services so as to satisfy their needs and
desires.
a. Consumer Behavior
b. Decision Making
c. Advertising
d. Feedback
377. A name, term, sign, design or a unifying combination of them, intended to identify and
distinguish the product or service from competing products or services is called
_________.
a. Personal Name
b. Trade Name
c. Brand
d. Trademark
378. ________ is the art and science of fitting the products or services to one or more
segments of the broad market in such a way as to set it meaningfully apart from
competition.
a. Positioning
b. Branding
c. Marketing
d. Segmentation
379. Price, product, place and promotion together form the:
a. Value
b. promotional mix
c. marketing mix
d. integrated marketing communication.
380. Prior to the development of integrated marketing communications, the promotional

function in most companies was dominated by:
a. Advertising
b. sales promotion
c. public relations
d. direct marketing.
381. _____ is defined as any paid form of nonpersonal presentation of ideas, goods, or
services by an identified sponsor using predominantly mass media communication.
a. Advertising
b. Personal selling
c. The promotional mix
d. Publicity
382. _____ advertising is done by local merchants to encourage consumers to shop at a

specific store, use a local service, or patronize a particular establishment.
39
a. Trade
b. Professional
c. Direct response
d. Retail
383. _____ advertising is targeted at individuals who influence the purchase of goods and
services used to make other products.
a. Professional
b. Primary demand
c. Retail
d. Business-to-Business
384. _____ includes those marketing activities that provide extra value or incentives for
purchasing a product such as coupons and premiums.
a. Advertising
b. Public relations
c. Sales promotion
d. Brand equity
385. _____ is a form of person-to-person communication in which a seller attempts to assist

and/or persuade prospective buyers to purchase the company's product or service or to act
on an idea.
a. Advertising
b. B. Sales promotion
c. Direct marketing
d. Personal selling
386. Geographic segmentation is about dividing:
a. consumers based on lifestyle

b. markets based on location
c. consumers based on usage
d. consumers based on income.
387. Dividing the market on the basis of personality and/or lifestyles is referred to as _____.
a. geographic segmentation
b. demographic segmentation
c. psychographic segmentation
d. socio economic segmentation
388. _____ involves ignoring segment differences and offering just one product or service for
the entire market.
a. Marketing mix
b. Positioning
c. Concentrated marketing
d. Undifferentiated marketing
389. _____ involves developing separate marketing strategies for a number of segments.
40
a. Differentiated marketing
b. Undifferentiated marketing
c. Concentrated marketing
d. Behavioristic segmentation
390. Product positioning is about:
a. the perception of a product from the view of competitors

b. the position of the product on the shelf of a retail store
c. the way the product is packed
d. developing a perception about a product or service in the mind of the consumers.
391. A brand's market position refers to its:
a. relative market share

b. location on store shelves
c. image in the mind of the customers
d. distribution intensity.
392. _____ is a bundle of benefits or values that satisfies the needs of consumers.
a. Product use positioning

b. Market
c. Product
d. Channel
393. Problem recognition is part of:
a. The decision process

b. Personal influence
c. The marketing mix
d. none of these
394. Post-purchase evaluation means:
a. Researching consumers who have previously bought the product.

b. Comparing the purchase outcome with previous expectations.
c. Feelings of disappointment following a purchase.
d. Both A and B
395. Obtaining satisfaction through fulfilling one's potential is called:
a. Esteem.
b. Self-actualisation
c. Perception
d. None of these
396. The component of attitude relating to beliefs and disbeliefs is called:
41
a.Conative.
b. Cognitive.
c.Affective.
d. Perception
397. The component of attitude relating to emotion is called:
a.Conative.
b. Affective.
c.Cognitive.
d. Perception.
398. …………….are society's relatively permanent and ordered divisions whose members
share similar values, interests, and behaviors.
a.Subcultures
b. Social classes
c.Perceptions
d. Purchase decisions
399. Family is one of the …………. factors that influence consumer behavior.
a.social
b. personal
c.psychological
d. cultural
400. _______ includes all the activities involved in selling goods or services to the final
consumers for personal, non business use.
a) merchandising c) procurement c) retailing d) all of these
401. Purpose of retail management is to_________.
a) save customer’s time b) retain customer c) satisfy customer d) both a & b
402. Retailers often act as the contact between manufacturers, wholesale and _______
a) traders b) intermediaries c) customers d) distributor
403. A ______store is a set up which offers wide range of products to end users under one
roof.
a) discount b) speciality c) department d) both a & b
404. A store format which generally sells food products and household items, properly placed
and arranged in specific departments_______.
a) convenience store b) grocery store c) supermarket d) malls
405. ______ pricing fix occurs when a group of competing retailers establishes a fixed price at
which to sell certain brands of products.
a) dyadic b) vertical c) horizontal d) monopolistic
406. ______price fix occurs when a retailer collaborates with the manufacturer or wholesaler
to resell an item at an agreed-on price.
a) dyadic b) vertical c) horizontal d) monopolistic
407. _______warranties is either written or verbalized agreements about the performance of a
product and can cover all attributes of the merchandise or only one attribute.
a) explicit b) implicit c) expressed d) implied
408. ______________ refers to the management of merchandise categories, or lines, rather
than individual products, as strategic business unit.
a) Category Management, b) Merchandise Management, c) retail management, d) both b
&c
42
409. The number of merchandise brands that are found in a merchandise line is known as
a)breadth, b) depth, c) assortment, d) both a & c
410. Which one of the following are merchandise constraining factors?
a) Currency Constraints, b) Space Constraints, c) Turnover Constrains, d) all of these
411. Consignment is when the vendor retains the ownership of the goods and usually
establishes the selling price; it is paid only when the goods are ______by the retailer.
a) bought, b) sold, c) owned, d) not sold
412. Maintain high merchandise turnover while maintaining _______ margin goals is an
important conflict in stock planning.
a) high, b) low, c) equal, d) adequate
413. Reliability of delivery, trade terms and projected markup are the criteria for selection of
_________.
a) retailing, b) merchandising, c) wholesaling, d) none of these
414. A ___________ is offered as an inducement to purchase large quantities of merchandise
in quantity discount.
a) price reduction, b) product reduction, c) price control, d) increased price
415. A discount provided to retailers if they purchase and take delivery of merchandise in the
off season.
a) trade discount, b) cash discount, c) seasonal discount, d) promotional discount.
416. _____________ occurs when an employee of one of the retailer’s vendors steals
merchandise as it is delivered to the retailer.
a) Vendor collusion, b) shrinkage, c) employee theft, d) customer theft
417. In the supplies decision stage a company should not in-source when
a) Uncertainty of economy is low b) uncertainty of economy is high c) Low competition
in market place d) Low transparency of supplier
418. Things to consider in the supplier evaluation in supply management are following
except______
a) financial status b) procurement methods c) track record d)cost of production
419. In the total cost of ownership analysis which one is not a Direct cost.
a) material b) labour c) machinery d) freight
420. In the total cost of ownership analysis which one is not a Indirect cost.
a) administration b) depreciation c) variable overhead d) lease
421. E-mart is an example of
a) Corporate retail chains, b) Franchises, c) Independents, single store, d) company
sponsored
422. Integration of Technology involves
a) Supply Chain Management, b) Customer Management, c) Customer Satisfaction, d) all
of these
FINANCE SPECIALIZATION
423. A firm's operating cycle is equal to its inventory turnover in days (ITD)
a. plus its receivable turnover in days (RTD).
b. minus its RTD.
c. plus its RTD minus its payable turnover in days (PTD).
d. minus its RTD minus its PTD
43
424. XYZ Company had sales last year of Rs. 265 million, including cash sales of Rs. 25
million. If its average collection period was 36 days, its ending accounts receivable balance is
closest to . (Assume a 365-day year.)
a. Rs. 26.1 million
b. Rs. 23.7 million
c. Rs. 7.4 million
d. Rs. 18.7 million
425. In last year the current ratio was 3:1 and quick ratio was 2:1.Presently current ratio is 3:1
but quick ratio is 1:1.This indicates comparably
a. high liquidity
b. higher stock
c. lower stock
d. low liquidity
426. You are considering two mutually exclusive investment proposals, project A and project
B. B's expected value of net present value is $1,000 less than that for A and A has less
dispersion. On the basis of risk and return, you would say that
a. Project A dominates project B.
b. Project B dominates project A.
c. Project A is more risky and should offer greater expected value.
d. Each project is high on one variable, so the two are basically equal.
427. What are the different options other than cash used for distributing profits to
shareholders?
a. Bonus shares
b. Stock split
c. Stock purchase
d. All of these
428. In Walter model formula D stands for
a. Dividend per share
b. Direct Dividend
c. Dividend Earning
d. None of these
429. When total current assets exceeds total current liabilities it refers to.
a. Gross Working Capital
b. Temporary Working Capital
c. Both a and b
d. Net Working Capital
430. If the weighting of equity in total capital is 1/3, that of debt is 2/3, the return on equity is
15% that of debt is 10% and the corporate tax rate is 32%, what is the Weighted Average
Cost of Capital (WACC)?
a. 10.533%
b. 7.533%
c. 9.533%
d. 11.350%
431. Which of the following would not be financed from working capital?
a. Cash float.
44
b. Accounts receivable.
c. Credit sales.
d. A new personal computer for the office.
432. What is the difference between the current ratio and the quick ratio?
a. The current ratio includes inventories and the quick ratio does not.
b. The current ratio does not include inventories and the quick ratio does.
c. The current ratio includes physical capital and the quick ratio does not.
d. The current ratio does not include physical capital and the quick ratio does.
433. Which of the following is not the responsibility of financial management?
a. allocation of funds to current and capital assets
b. obtaining the best mix of financing alternatives
c. preparation of the firm's accounting statements
d. development of an appropriate dividend policy
434. Banks generally prefer Debt Equity Ratio at :
a. 1:1
b. 1:3
c. 2:1
d. 3:1
435. If a company issues bonus shares the debt equity ratio will
a. Remain unaffected
b. Will be affected
c. Will improve
436. In the balance sheet amount of total assets is Rs.10 lac, current liabilities Rs.5 lac capital
& reserves are Rs.2 lac .What is the debt equity ratio?
a. 1;1
b. 5:1
c. 2:1
437. Which of the following would be included in a cash estimation/ budget?
a. depreciation charges.
b. dividends.
c. goodwill.
d. patent amortization.
438. Which of the following would be considered an application of funds?
a. a decrease in accounts receivable.
b. a decrease in cash.
c. an increase in account payable.
d. an increase in cash.
439. All of the following influence capital budgeting cash flows EXCEPT:
a. accelerated depreciation.
b. salvage value.
45
c. tax rate changes.
d. method of project financing used.
440. The estimated benefits from a project are expressed as cash flows instead of income
flows because:
a. it is simpler to calculate cash flows than income flows.
b. it is cash, not accounting income, that is central to the firm's capital budgeting decision.
c. this is required by the Internal Revenue Service.
d. this is required by the Securities and Exchange Commission.
441. A profitability index of .85 for a project means that:
a. the present value of benefits is 85% greater than the project's costs.
b. the project's NPV is greater than zero.
c. the project returns 85 cents in present value for each current dollar invested.
d. the payback period is less than one year.
442. A project's profitability index is equal to the ratio of the of a project's future cash flows to
the project's .
a. present value; initial cash outlay
b. net present value; initial cash outlay
c. present value; depreciable basis
d. net present value; depreciable basis
443. The discount rate at which two projects have identical is referred to as Fisher's rate of
intersection.
a. present values
b. net present values
c. IRRs
d. profitability indexes
444. To increase a given present value, the discount rate should be adjusted
a. upward.
b. downward.
c. No change.
d. constant
445. Which of the following would be consistent with a more aggressive approach to
financing working capital?
a. Financing short-term needs with short-term funds.
b. Financing permanent inventory buildup with long-term debt.
c. Financing seasonal needs with short-term funds.
d. Financing some long-term needs with short-term funds.
446. Which asset-liability combination would most likely result in the firm's having the
greatest risk of technical insolvency?
a) Increasing current assets while lowering current liabilities.
b) Increasing current assets while incurring more current liabilities.
c) Reducing current assets, increasing current liabilities, and reducing long-term debt.
d) Replacing short-term debt with equity.
46
447. _______________ refers to the amount invested in various components of current assets.
a. Temporary working capital
b. Net working capital
c. Gross working capital
d. Permanent working capital
448. _______________ refers to a firm holding some cash to meet its routine expenses that
are incurred in the ordinary course of business.
a. Speculative motive
b. Transaction motive
c. Precautionary motive
d. Compensating motive
449. Capital Management, Cash management, Credit management are the functions of
a. Treasurer b. Controller c. both a &b d. None of them
450. Cost accounting, preparation of budgets, preparation of financial statements, forecasting

and internal control are the functions of
a. Treasurer b. Controller c. Both A & B d. None of above
451. The value at some future time of a present amount of money, or a series of payments,
evaluated at a given interest rate is called
a. Future Value b. Present Value c. Both A & B d. None of above
452. The current value of a future amount of money, or a series of payments, evaluated at a
given interest rate is called
a. Future Value b. Present Value c. Both A & B d. None of above
453. Mr. Ali wants to know how large his deposit of Rs. 10,000 today will become at a
compound annual interest rate of 10% for 5 years.
a. Rs. 16,105 b. Rs. 18,230 c. Rs. 15110 d. Rs. 15900
454. A series of equal payments or receipts occurring over a specified number of equidistant
periods is called
a. Future b. Present Value c. Annuity d. Perpetuity
455. Payments or receipts occur at the end of each period is called
a. Ordinary Annuity b. Annuity Due c. Both A& B d. Annuity
456. Payments or receipts occur at the beginning of each period is called
a. Ordinary Annuity b. Annuity Due c. Both A& B d. Annuity
457. The actual rate of interest earned (paid) after adjusting the nominal rate for factors such
as the number of compounding periods per year is called
a. Simple Interest b. Compound Interest c. Effective Annual Interest Rate d. All of above
458. A table showing the repayment schedule of interest and principal necessary to pay off a
loan by maturity is called
a. Present Value b. Future Value c. Amortization Schedule d. Annuity
459. A Person is borrowing Rs. 10,000 at a compound annual interest rate of 12%. What will
be the annual installment if annual payments are made for 5 years?
47
a. Rs. 2,774 b. Rs. 2,994 c. Rs. 3,014 d. Rs. 2,611
460. An ordinary annuity whose payments or receipts continue forever is called
a. Present Value b. Future Value c. Amortization Schedule d. Perpetuity
461. A ______________ is an index that relates two accounting numbers and is obtained by
dividing one number by the other.
a. Liquidity Ratio b. Financial Ratio c. Leverage Ratio d. Solvency Ratio
462. ______________Indicates the effectiveness of the inventory management practices of the

firm.
a. Current Ratio
b. Debtors Turnover Ratio
c. Creditors Turnover Ratio
d. Inventory Turnover Ratio
463. _____________Indicates the firm’s profitability after taking account of all expenses and
income taxes.
a. Current Ratio
b. Net Profit Ratio
c. Leverage Ratio
464. The discount rate that equates the present value of the future net cash flows from an
investment project with the project initial cash outflow is called
a. Internal Rate of Return

b. Payback Period
c. Net Present Value
d. Profitability Index
465. The present value of an investment project net cash flows minus project initial cash
outflow is called

b. Payback Period
466. The ratio of present value of project net future cash flows to the project initial cash
outflows is called

b. Payback Period
467. If net present value of a project investment is zero or more, then project will
a. Accepted
b. Rejected
c. None of Above
d. Both A&B
468. In Murbaha agreement, the financer may appoint agent which ………………
a. Must be customer itself

b. may be the customer itself
48
c. must be third party
d. must be seller itself.
469. Murbaha could be used only for the purchasing of…………………….
a. Fresh assets
b. used asset
c. old assets
d. future made goods
470. ………………is a sale contract where the full payment of the goods are paid in advance
a. Murabaha
b. Salam
c. Muswama
d. Normal sale
471. Contract of ………… doesn’t valid for the products that are must be delivered at the spot.
a. Salam
b. Muswama
c. Murabah
d. Ijarah
472. ………… is a simple sale that we are used in our daily routine life.
a. Ijarah
b. Istisna
c. parallel salam
d. Muswama
473. Sale of debt is ……………………… in Shariah,
a. Allowed
b. not allowed
c. allowed with some conditions
d. not strictly allowed
474. A fund where the subscription amount is invested in different types of investments, like
equities, leasing, commodities, etc. is known as ……………………
a. Ijarah Fund
b. Mixed fund
c. equity fund
d. murbaha fund
475. Murabaha is a kind of sale where the certain profit added to the actual cost of the goods
which is ………………………………
a. hidden from the buyer

b. know by the buyer
c. known to the seller
d. don’t know any one
ACCOUNTING SPECIALIZATION
476. ___________ means the generally accepted accounting principle under which the
valuation of stock-in-trade is based on a weighted average cost of units on hand
49
a. Central average method
b. Weighted average
c. Stock in trade method
d. Average cost method
477. __________means the cost of materials that become an integral part of the stock-in trade
manufactured or produced, or which are consumed in the manufacturing or production
process
a. fixed cost
b. product cost
c. direct material cost
d. stock-in trade
478. The assets which come into existence upon the happening of a certain event are
called__________?
a. Contingent assets
b. Fixed assets
c. Fictitious assets
d. Quick assets
479. Payment for freight on raw material purchased is called
a. Capital b. Revenue c. Deferred d. None of these

payment payment revenue
payment
480. What from the following is NOT a current asset?

a. Patent rights b. Inventory c. Cash d. Trade receivables
481. Depreciable amount =

a. Cost of an asset + Residual value
b. Cost of an asset – Residual value
c. Residual value – Cost of an asset
d. None of these
482. According to the concept, expenses are match with revenue to study the business results
a. Dual aspect b. Matching c. Business entity d. Cost concept
concept concept concept
483. This type of risk is avoidable through proper diversification.
a. portfolio risk b. systematic risk c. unsystematic risk d. total risk
484. Debit balance of cash book is also called

a. Favourable b. Unfavourable c. Credit d. All of these
balance balance balance
485. A copy of customer account in the bank ledger is called

a. Balance b. Bank c. Deposit d. Withdrawal
statement statement statement statement
486. The amount setting aside out of profit for a possible loss or liabilities is called
a. Allowance b. Provision c. Reserves d. All of these
50
487. Cost accounting department prepares ___________ that helps them in preparing final
accounts.
a. Cost sheets b. Cost of goods sold c. Cost of production d. Material
statement Report requisition form
488. Weighted average cost per unit is calculated by which of the following formula?
a. Cost of goods b. Total c. Cost of goods d. Cost of goods

issued/number of Cost/Total manufactured/closing sold/total
units issued Units units units
489. ________method assumes that the goods received most recently in the stores or produced
recently are the first ones to be delivered to their questioning department?
a. LIFO b. FIFO c. Weighted d. Most recent
average method price method
490. Accounting Ratios are important tools used by
a. Managers,
b. Researchers
c. Investors
d. All of the above
491. Which of the following is an example of a non-adjusting event?
a. Sale of inventory for less than its carrying value shortly after the reporting period
b. Amounts received in respect of an insurance claim being negotiated at the period end
c. Destruction of a machine by fire after the reporting period
d. Bankruptcy of a major customer with a balance owing at the period end
492. A construction contract in which the contractor is reimbursed for pre-defined costs, plus a
percentage of these or a fixed fee mark-up, is called…
a. Fixed price contract
b. Pre-defined contract
c. Cost plus contract
d. Negotiated contract
493. A contract in which the contractor agrees to a pre-determined contract price, which in
some cases is subject to cost escalation clauses is called a…
a. Fixed price contract
b. Pre-defined contract
c. Cost plus contract
d. Negotiated contract
494. Which of the following costs cannot be allocated to a construction contract cost?
a. Material used in construction
b. Selling costs
c. Rectification work
d. Design work
495. Which of the following is not a requirement in determining whether the construction of a
series of assets should be treated as separate contracts?
a. Separate proposals were submitted
b. The customer could use different contractors for each asset
c. Contracts will run concurrently or in a single sequence
d. Costs and revenues can be separated for each asset
496. Revenue and costs which are recognized according to the stage of completion of a
contract is called the:
51
a. Estimated value method
b. Percentage of completion method
c. Reliable estimate method
d. Cost plus method
497. Contract revenue is measured at ____ of received or receivable revenue

a. Fair value
b. Present value
c. Cost
d. Amortized value
498. Which of the following is not a cost relating to a construction contract?
a. Wages for site supervisors
b. Costs of machine rental
c. Depreciation of idle machinery
d. Costs of materials used
499. The change in forecasted contract revenue or costs is…
a. a change in accounting policy
b. a change in accounting estimate
c. an error
d. None of these
500. A fixed price contract is a contract in which the contractor agrees to a…
a. Fixed contract price, but must bear the escalation costs
b. Fixed contract price which might be subject to escalation costs
c. Fixed rate per unit of output which is not subject to escalation costs
d. Fixed rate per unit of output and bears escalation costs
501. Which of the following is not a method in determining the stage of completion of a
construction contract?
a. Proportion of contract costs incurred
b. Progress payments received
c. Surveys of work performed
d. Physical proportion of work completed
502. When the contract costs are likely to exceed contract revenue, then the losses shall be
recognized…
a. Immediately
b. Within the same period
c. Within the next period
d. When the losses are actually incurred
503. Allocation of general overheads to a construction contract should be based on ____

activity levels.
a. Abnormal
b. Expected
c. Normal
d. Actual
504. Finance leases are accounted for in the books of lessor in a similar manner to
a. Credit transactions
b. Cash transactions
c. Sale and leaseback agreements
d. Loan forgiveness
505. In an operating lease, if a rebate is received, how should it be recorded in the financial
statements?
a. Treat as deferred income and release to P&L over the lease term
b. Recognize immediately as income
c. Deduct from the value of the lease payments
52
d. Ignore
506. The payment over the lease term the lessee can or must make is called…
a. Principal
b. Interest
c. Present value payments
d. Minimum lease payments
507. When a lease transfers substantially all the risks and rewards of ownership to lessee, this
is called…
a. A finance lease
b. An operating lease
c. A buy-to-let agreement
d. A rental agreement
508. Which of the following is not a disclosure requirement for finance leases?
a. Carrying amount of asset
b. Market value of asset
c. General description of significant leasing arrangements
d. Reconciliation between total minimum lease payments and their present value
509. A leased asset should be depreciated over the…

a. Shorter of the lease term and the asset’s useful life
b. Longer of the lease term and the asset’s useful life
c. Entire lease term
d. Useful life of the asset
510. Which of the following is not an indication a lease is a finance lease?

a. The lease transfers ownership of the asset to the lessee at the end of the lease
b. The lease term is for a short part of the economic life of the asset
c. The leased assets are specialised in nature
d. The present value of minimum lease payment amounts to substantially all of the fair
value of the asset
511. Operating leases are mostly ______ agreements.
a. Long term
b. Medium term
c. Short term
d. Verbal
512. Revenue of entity shall be measured at:
a. Cost of sales
b. Fair Value
c. Cost of production
d. Market Value
513. A Limited ships goods by sea to a foreign company, B Limited. As per the terms of the
contract, any loss or damage to the goods until it reaches the factory of B Limited shall be
borne by A Limited. In this case when does A Limited recognize revenue?
a. When the goods leave the factory of A Limited
b. When the goods reach the country in which B is located
c. When the goods are packed and ready for sale
d. When goods reach the factory of B Limited
514. When the outcome of the transaction involving the rendering of services cannot be
estimated reliably, then revenue shall:
a. Not be recognized
b. Recognized to the extent of expenses recognised are recoverable
c. Be deferred
53
d. Recognized fully irrespective of the outcome
515. In an agency transaction:
a. Only the revenue from sale is recognized
b. Revenue from sale net of commission is recognized
c. Commission is added to the sale value and the total is recognized
d. Only commission is recognized
516. When the seller retains an obligation for unsatisfactory performance not covered by
normal warranty:
a. They are said to have retained insignificant risk
b. They are said to have retained significant risk and rewards of the sale
c. They are said to have transferred the risk and reward of sale to the buyer
d. They are said to have transferred performance risks to the buyer
517. Revenue from sale of goods is recognized when:
a. The goods have been delivered to the buyer
b. The cash has been received for the sale of goods
c. The significant risks and rewards of ownership have been transferred to the buyer
d. Sale order has been received
518. Royalties should be recognised on:
a. Cash basis
b. Receipt basis
c. Payment basis
d. Accrual basis
519. Revenue accruing to an entity includes:
a. Investment capital flowing into an entity
b. Gross inflow of economic benefits of ordinary activities
c. Proceeds from issue of stock and shares
520. Which of the following securities do not influence diluted EPS?
a. Equity shares not entitled to dividend, but which may in the future
b. Ordinary preference shares
c. Convertible loan stock
d. Share options
521. Which of the following is not an example of a potential ordinary share?
a. Standard preferred share
b. Convertible preferred share
c. Share warrants
d. Convertible debt
522. Which of the following should be adjusted when calculating dilutive EPS?
a. Preference dividends payable on convertible preference shares
b. Interest paid on convertible debt
c. Payments to non-discretionary employee profit sharing plans
d. All of these
523. Basic EPS is calculated using the net profit of loss for the period attributable to…
a. Ordinary shareholders
b. Preferred shareholders
c. Debenture holders
d. Secured creditors
524. Where should basic EPS be presented in the financial statements?
a. Statement of Comprehensive Income
b. Statement of Financial Position
c. Statement of Changes in Equity
d. Notes to the financial statements
525. Diluted EPS shows
54
a. The expected EPS if all securities with an equity interest, exercise those interests
b. The expected EPS if the share price falls
c. The expected EPS if all loans are discharged
d. The expected EPS if equity options and warrants are redeemed
526. Ordinary shares outstanding during the period are
a. Based on the outstanding shares in the previous period
b. Based on the outstanding shares at the start of the period
c. Based on the outstanding shares at the end of the period
d. The weighted average number of shares outstanding during the period
527. A current asset or liability is expected to be recovered or settled within..
a. Three months
b. Six months
c. Twelve months
d. Twenty four months
528. Which of the following is a current liability?
a. Bank overdraft
b. Mortgage
c. Preference shares
d. Retained earnings
529. Which of the following is not a component of a Statement of Financial Position?

a. Non-current assets
b. Inventories
c. Cost of goods sold
d. Retained Earnings
530. Which of the following are examples of current assets?
a. Motor vehicles
b. Prepayments
c. Share premium
d. Goodwill
531. What is the term used to describe the time between the acquisition of assets for
processing and their realization in cash or cash equivalents?
a. Processing cycle
b. Turnover
c. Operating cycle
d. Turnaround
532. Cash payments to and on behalf of employees is an example of cash flows from
b. Financing activities
c. Investing activities
d. None of these
533. The principal revenue-producing activities of an entity are called…
b. Investing activities
c. Financing activities
d. None of these
ANSWER KEY MCQS FOR MCOM EXIT EXAM
55
1. b
2. c
3. c
4. d
5. b
6. b
7. d
8. b
9. a
10. b
11. d
12. d
13. c
14. c
15. d
16. c
17. a
18. c
19. c
20. d
21. a
22. a
23. d
24. b
25. d
26. d
27. d
28. b
29. c
30. a
31. c
32. b
33. a
34. a
35. a
36. d
37. a
38. a
39. d
40. c
41. c
42. a
43. b
44. c
45. b
46. d
47. a
48. b
49. b
50. c
51. b
52. a
53. a
54. a
55. c
56. c
57. d
58. d
59. c
60. c
61. c
62. b
56
63. d
64. c
65. a
66. b
67. c
68. b
69. c
70. c
71. d
72. a
73. c
74. b
75. a
76. c
77. c
78. a
79. b
80. a
81. c
82. a
83. a
84. d
85. d
86. c
87. c
88. d
89. d
90. c
91. c
92. a
93. b
94. d
95. b
96. d
97. c
98. b
99. c
100. b
101. b
102. a
103. b
104. a
105. c
106. b
107. c
108. d
109. d
110. b
111. c
112. c
113. a
114. a
115. c
116. b
117. a
118. d
119. d
120. d
121. c
122. b
123. b
124. b
57
125. d
126. c
127. c
128. b
129. b
130. c
131. c
132. b
133. c
134. b
135. d
136. b
137. b
138. b
139. a
140. d
141. a
142. b
143. c
144. b
145. c
146. d
147. c
148. d
149. c
150. c
151. c
152. b
153. b
154. a
155. a
156. c
157. a
158. d
159. a
160. a
161. c
162. a
163. a
164. c
165. b
166. c
167. d
168. a
169. a
170. b
171. d
172. c
173. c
174. a
175. d
176. d
177. c
178. a
179. b
180. c
181. d
182. a
183. d
184. b
185. d
186. c
58
187. c
188. b
189. d
190. a
191. d
192. b
193. c
194. a
195. b
196. d
197. a
198. a
199. a
200. b
201. d
202. c
203. a
204. b
205. c
206. a
207. a
208. b
209. d
210. c
211. d
212. a
213. a
214. b
215. c
216. a
217. a
218. d
219. d
220. c
221. d
222. c
223. a
224. a
225. a
226. a
227. a
228. a
229. c
230. b
231. c
232. c
233. b
234. d
235. d
236. a
237. a
238. c
239. c
240. b
241. b
242. c
243. c
244. c
245. c
246. a
247. c
248. b
59
249. d
250. b
251. b
252. a
253. a
254. a
255. b
256. a
257. c
258. a
259. b
260. b
261. c
262. c
263. a
264. d
265. b
266. c
267. c
268. d
269. c
270. a
271. a
272. c
273. b
274. b
275. b
276. d
277. c
278. c
279. a
280. a
281. b
282. b
283. d
284. c
285. b
286. d
287. a
288. a
289. b
290. b
291. c
292. a
293. c
294. d
295. d
296. b
297. b
298. d
299. d
300. a
301. d
302. a
303. b
304. c
305. d
306. b
307. a
308. a
309. b
310. b
60
311. b
312. b
313. c
314. a
315. d
316. a
317. d
318. b
319. b
320. a
321. b
322. a
323. a
324. a
325. d
326. d
327. a
328. b
329. d
330. d
331. b
332. a
333. a
334. d
335. c
336. a
337. a
338. b
339. b
340. b
341. c
342. c
343. c
344. a
345. a
346. d
347. b
348. b
349. d
350. c
351. b
352. a
353. b
354. a
355. b
356. d
357. b
358. b
359. c
360. c
361. c
362. d
363. d
364. a
365. a
366. c
367. c
368. a
369. b
370. d
371. d
372. c
61
373. c
374. c
375. d
376. a
377. c
378. a
379. c
380. a
381. a
382. d
383. d
384. c
385. d
386. b
387. c
388. d
389. a
390. d
391. c
392. c
393. a
394. b
395. b
396. b
397. b
398. b
399. a
400. c
401. d
402. c
403. c
404. c
405. c
406. b
407. c
408. a
409. d
410. d
411. b
412. a
413. b
414. a
415. c
416. a
417. b
418. b
419. c
420. c
421. c
422. d
423. a
424. b
425. b
426. a
427. d
428. a
429. d
430. c
431. d
432. a
433. c
434. c
62
435. d
436. d
437. b
438. d
439. d
440. b
441. c
442. a
443. b
444. b
445. d
446. c
447. c
448. b
449. a
450. b
451. a
452. b
453. a
454. c
455. a
456. b
457. c
458. c
459. a
460. d
461. b
462. d
463. b
464. a
465. c
466. d
467. a
468. b
469. a
470. a
471. a
472. d
473. b
474. b
475. b
476. d
477. c
478. a
479. b
480. a
481. b
482. b
483. a
484. a
485. b
486. b
487. b
488. b
489. a
490. d
491. c
492. c
493. a
494. b
495. c
496. b
63
497. a
498. c
499. b
500. b
501. b
502. a
503. c
504. a
505. a
506. d
507. a
508. b
509. a
510. b
511. c
512. b
513. d
514. b
515. d
516. b
517. c
518. d
519. b
520. b
521. a
522. d
523. a
524. a
525. a
526. d
527. c
528. a
529. c
530. b
531. c
532. a
533. a
64

MCOM Exist Exam Questions

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MCOM Exist Exam Questions

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MCQs

1. A tangible item is termed as:

57. Which one is not included in the hiring process?

63. To Become a Leader do all except

64. Alternative work arrangements include all of the following EXCEPT;

66. Organizational efficiency is expressed as:

69. Appraisal of a worker’s performance can be described as:

a. Retail Price + GST

a. income from property

a. Accrual tax accounting

a. Inspector inland revenue

88. Pakistan Fiscal year starts from:

89. Which is provincial tax in Pakistan?

90. Corporate tax is levied on:

91. If we deduct direct tax from personal income, we get:

a. Net national income

92. The largest part of national income is

93. The most important source of a government is:

94. In Pakistan, taxes are levied by:

a. Prime minister of Pakistan

95. Government finance is called

96. A direct tax is that which:

a. Is heavy burden on the tax payer

97. In Pakistan government budget is prepared by:

98. Taxes on commodities are :

99. Govt. prepares its budget:

100. DU PONT Analysis deals with:

103. In Inventory Turnover calculation, what is taken in the numerator?

106. Suppliers and Creditors of a firm are interested in

108. Financial planning starts with the preparation of:

109. Which of the following is not shown in Cash Budget?

111. Process of Financial Planning ends with:

112. Which of the following is not true for cash Budge?

113. Capital Budgeting is a part of:

114. Capital Budgeting deals with:

117. Savings in respect of a cost is treated in capital budgeting as:

118. Risk in Capital budgeting is same as:

119. Which of the following is a risk factor in capital budgeting?

121. Which of the following is not a motive to hold cash?

125. Deep Discount Bonds are issued at

126. Principal value of a bond is called the

128. Market interest rate and bond price have

129. In the formula ke (D1/P0) + g, D1/P0 refers to

130. The rate of interest payable on a bond is also called

131. A long-term bond issued with collateral is called

134. Net Profit Ratio Signifies:

135. In Ratio Analysis, the term Capital Employed refers to:

136. In Net Profit Ratio, the denominator is

137. The correct form of accounting equation is

a. External b. Fixed c. Current d. Liquid

150. The unsold goods are ______________?

a. Equity b. Sale return c. Inventory d. Purchases

151. Cash sale to Mr. A will credited to

a. Mr. A’s b. Cash account c. Sales account d. Goods account

152. Carriage inward is

a. Indirect b. Direct expense c. Selling d. Operating

a. Owners b. Accounts c. Bill payable d. Accounts

154. Net sales are equal to sales minus

a. Return inward b. Return c. Cost of goods d. Carriage on

155. Transaction which is an accountant forget to record is known as

a. Errors of b. Errors of c. Errors of d. None of these

156. Bad debt arises from

a. Sale on b. Cash sales c. Account d. Account