PPSC Accountant Local Government & Community Development Past Paper 2020 Solved Solved MCQs

Correct Answer: Present value of perpetuity

The present value of a perpetuity is calculated by dividing the regular cash payment by the interest or discount rate.

Correct Answer: By opting efficient processes

Efficient processes reduce waste and operational costs, effectively increasing the internal source of funds.

Correct Answer: (Profit / Investment) x 100

Return on Investment (ROI) is calculated by dividing the net profit by the initial investment cost, multiplied by 100.

Correct Answer: 2:1

A traditional rule of thumb holds that a healthy current ratio (current assets to current liabilities) is 2:1.

Correct Answer: Limited by shares

The Pakistan Stock Exchange (PSX) is demutualized and structured as a public company limited by shares.

Correct Answer: Cost leadership

Cost leadership is a competitive strategy where a company aims to be the lowest-cost producer in its industry.

Correct Answer: Operational level goals

Operational level goals are specific, short-term objectives set by departments to align with broader corporate goals.

Correct Answer: Quality based

Departmentalization is typically based on functions, geography, products, or customers, not quality.

Correct Answer: Planning

Planning is the core management function that involves setting objectives and determining a course of action to achieve them.

Correct Answer: Non-cash charges

Deferred tax expenses are non-cash charges that are added back to net income when calculating cash flows from operations.

Correct Answer: Assets net of liabilities

Net worth, or owner's equity, is determined by subtracting total liabilities from total assets.

Correct Answer: 1

Working capital is Current Assets minus Current Liabilities. If they are equal (Ratio = 1), working capital is zero.

Correct Answer: Practicability

Accounting principles must be practical and actionable to ensure consistent and reliable financial reporting.

Correct Answer: Assets

In traditional accounting, real accounts represent tangible and intangible assets whose balances carry forward to the next year.

Correct Answer: Both Cash and Accounts receivable

Quick assets are highly liquid and include cash, marketable securities, and accounts receivable, excluding inventory.

Correct Answer: Added to the accumulated depreciation

Depreciation expense is a non-cash allocation of cost that gets added to the contra-asset account, Accumulated Depreciation.

Correct Answer: Lucas Pacioli

Luca Pacioli, an Italian mathematician, is known as the father of accounting and double-entry bookkeeping.

Correct Answer: Non-Cash items

A cash budget only tracks expected actual cash inflows and outflows, excluding non-cash items like depreciation.

Correct Answer: Amalgamation of two different types of businesses

A business combination typically refers to the amalgamation or merging of two or more separate business entities into one.

Correct Answer: Journal

A journal is the book of original entry where financial transactions are recorded for the first time in chronological order.

Correct Answer: Assets

Prepaid expenses are future economic benefits paid in advance, thereby classified as current assets.

Correct Answer: Accrued expenses

Accrued expenses are liabilities that have incurred but have not yet been paid or formally recorded.

Correct Answer: Drawings

When an owner withdraws cash or assets for personal use, it is recorded in the Drawings account, reducing overall equity.

Correct Answer: Expenditure

Depreciation represents the systematic allocation of a fixed asset's cost (capital expenditure) to expense over its useful life.

Correct Answer: Luca Pacioli

Luca Pacioli was a Renaissance mathematician who published the first detailed description of the double-entry accounting system.

Correct Answer: Asset

In older accounting frameworks, accumulated losses were sometimes shown on the asset side as a fictitious asset. Modern standards deduct it from equity.

Correct Answer: When relevant matching cost exceeds revenues

A loss is generated when the costs matching the operational period surpass the total revenues earned.

Correct Answer: Trial Balance

An accounting worksheet is an extended trial balance used to draft adjusting entries and prepare financial statements.

Correct Answer: Goodwill

Goodwill is an intangible asset that arises when a buyer acquires an existing business at a premium.

Correct Answer: People

The extended 7 Ps of service marketing include People, Process, and Physical evidence in addition to the standard 4 Ps.

Correct Answer: Market development

Market development involves introducing existing products into new geographical areas or demographic segments.

Correct Answer: Commercial sources of information gathering

Commercial sources include marketer-controlled information like advertising, salespersons, and packaging.

Correct Answer: Outside in activity

Marketing adopts an 'outside-in' perspective by first understanding market needs before shaping products.

Correct Answer: Selling is inside out activity

Selling relies on an 'inside-out' approach, focusing on pushing existing products to consumers rather than starting with consumer needs.

Correct Answer: Internal recruitment

Internal recruitment involves filling job vacancies with existing employees from within the organization.

Correct Answer: Vertical expansion in job

Job enrichment is the vertical expansion of a job, giving employees more responsibility and control over their work.

Correct Answer: Training and development

Development specifically focuses on future organizational needs and career growth, often paired with training for current skills.

Correct Answer: Off the job training

Off-the-job training occurs away from the regular work environment, such as in classrooms or seminars.

Correct Answer: Individualized consideration

Individualized consideration occurs when leaders act as coaches or mentors, paying special attention to each follower's needs.

Correct Answer: Labour Cost + Overhead Cost

Conversion costs are the expenses incurred to convert raw materials into a finished product (Direct Labor + Manufacturing Overhead).

Correct Answer: Cement industry

Process costing is used in continuous mass-production industries producing homogeneous goods, like cement and oil refining.

Correct Answer: Variable cost

Direct raw materials, like sugarcane in a sugar mill, are variable costs because they change in direct proportion to production volume.

Correct Answer: Labour plus overheads

Conversion cost represents the direct labor and manufacturing overheads required to transform raw materials into finished goods.

Correct Answer: Incremental / decremental budgeting

Pakistan's federal budget primarily utilizes incremental budgeting, using the previous year's budget as a baseline.

Correct Answer: Both Government and Private ownership

Central banks can be fully state-owned (like the SBP in Pakistan) or have mixed/private shareholders (like the US Federal Reserve).

Correct Answer: Continuous variable

A continuous variable can take an infinite number of possible values within a given range, unlike discrete variables.

Correct Answer: Ratio scale

A ratio scale possesses a true, meaningful zero point, allowing for the calculation of ratios between values.

Correct Answer: Arithmetic mean

In general parlance, when people speak of an 'average', they are specifically referring to the arithmetic mean.

Correct Answer: 27

Substituting 3 into x^3 yields 3 * 3 * 3 = 27.

Correct Answer: 15

Let the brother's age be x. Ali's age is 2x. Their difference is 2x - x = 15. Thus, x = 15.

Correct Answer: Emotions

Emotions are intense, short-lived feelings directed at someone or something, distinct from longer-lasting moods.

Correct Answer: Behavior

In organizational behavior's iceberg model, visible behavior is above the surface, while hidden attitudes and values lie below.

Correct Answer: Emotional Intelligence

Emotional Intelligence (EQ) refers to the capability of individuals to recognize and effectively manage their own and others' emotions.

Correct Answer: Hygiene and motivator factors

Frederick Herzberg's two-factor theory differentiates between 'hygiene factors' (preventing dissatisfaction) and 'motivator factors' (driving satisfaction).

Correct Answer: 50 states

The United States is composed of 50 individual states and a federal district (Washington, D.C.).

Correct Answer: California, USA

Silicon Valley is a region in Northern California that serves as a global center for high technology and innovation.

Correct Answer: Mogadishu

Mogadishu is the capital and most populous city of the African nation of Somalia.

Correct Answer: Valentina Tereshkova

Soviet cosmonaut Valentina Tereshkova became the first woman in space on Vostok 6 in 1963.

Correct Answer: Rangoon

Rangoon, now known as Yangon, is the largest city and former capital of Burma (Myanmar).

Correct Answer: Means of transport

Vehicles, railways, and airplanes act as modes of physical transportation to move people and goods.

Correct Answer: Lahore

The first national-level marathon in Pakistan took place in Lahore in 2005.

Correct Answer: Cryptocurrency

Cryptocurrency is a decentralized digital asset using cryptography to secure transactions and control asset creation.

Correct Answer: 2

MS Excel offers exactly two page orientations: Portrait and Landscape.

Correct Answer: Receiver's email address

While subjects and messages can be left blank, an email protocol absolutely requires a valid destination address.

Correct Answer: All of these

Computers are ubiquitous in medicine, handling tasks ranging from imaging (MRI/CT) to laboratory analysis and patient records.

Correct Answer: Downloading

Downloading is the transmission of a file from a remote server over the internet to a local user's computer.

Correct Answer: Both Paul Allen and Bill Gates

Microsoft, the company behind the Windows operating system, was co-founded by Bill Gates and Paul Allen.

Correct Answer: 20

Under the standard provisions of the Partnership Act 1932 in Pakistan, a general partnership can have a maximum of 20 partners.

Correct Answer: 20

The Partnership Act of 1932 generally restricts the maximum number of partners in a general business to 20.

Correct Answer: Limited partnership

In a limited partnership, limited partners hold liability strictly up to the amount of their capital contributions.

Correct Answer: Prepare accounts in a prescribed manner under the law

Registered NGOs must comply with statutory requirements to prepare and present their financial accounts legally.

Correct Answer: Schedule 4

The Fourth Schedule of the Companies Ordinance 1984 (now Companies Act 2017) outlines the disclosure requirements for listed companies.

Correct Answer: None of these

NGOs in Pakistan are generally registered under the Societies Registration Act 1860 or the Voluntary Social Welfare Agencies Ordinance 1961.

Correct Answer: Both of the above

Auditors can be held liable to third parties for negligence and may face liability if they fail to detect material frauds due to lack of professional skepticism.

Correct Answer: Italy

Genoa is a major port city located in the Liguria region of northwestern Italy.

Correct Answer: Brunei Darussalam

Brunei is located in Southeast Asia, whereas Nepal, Bhutan, and Sri Lanka are in South Asia.

Correct Answer: Hingol

The Hingol River is the longest river in Balochistan, spanning approximately 350 miles.

Correct Answer: Sir Agha Khan

Sir Agha Khan III was formally elected as the first permanent president of the All India Muslim League.

Correct Answer: April 21, 1972

Zulfiqar Ali Bhutto ended the civilian martial law and instituted an interim constitution on April 21, 1972.

Correct Answer: Multan

Multan is famously known as the 'City of Saints' due to the large number of Sufi shrines located there.

Correct Answer: Aurangzeb

Shah Waliullah was born in 1703, near the end of Emperor Aurangzeb's long reign (which ended in 1707).

Correct Answer: Miguel Diaz Canel

Miguel Díaz-Canel assumed the office of the President of Cuba, taking over after the Castro era.

Correct Answer: Increased amount of UV rays will reach Earth's surface

The ozone layer filters out harmful ultraviolet (UV) radiation; its depletion allows more UV light to reach Earth.

Correct Answer: Chloroquine

Chloroquine has historically been a primary antimalarial medication used to treat and prevent malaria.

Correct Answer: Throat

The tonsils are clusters of lymphatic tissue situated at the back of the human throat.

Correct Answer: Blood

Leukemia is a form of cancer that affects the blood and bone marrow, characterized by abnormal white blood cell production.

Correct Answer: 46

The series increases by consecutive odd numbers: +5, +7, +9, +11. The next difference is +13, so 33 + 13 = 46.

Correct Answer: 7

The pattern alternates between -1 and +3 (1-1=0, 0+3=3, 3-1=2, 2+3=5, 5-1=4). The next step is 4+3=7.

Correct Answer: Expert of many subjects

A polymath is an individual whose knowledge spans a substantial number of diverse subjects.

Correct Answer: Mobile

Static means lacking in movement or change, making 'Mobile' (capable of moving) its direct antonym.

Correct Answer: On the way

The French phrase 'en route' translates to 'on the way' in English.

Correct Answer: Home

'There's no place like home' is a famous English idiom popularized significantly by 'The Wizard of Oz'.

Correct Answer: Over

The correct preposition to use with 'triumph' to indicate defeating an opponent is 'over'.

Correct Answer: ٹال مٹول کرنا

اردو محاورے 'لیت و لعل کرنا' کا مطلب بہانے بنانا یا ٹال مٹول کرنا ہے۔

Correct Answer: ڈاکٹر محمد دین تاثیر

مشہور شعری مجموعہ 'آتش کدہ' ممتاز اردو ادیب اور شاعر ڈاکٹر محمد دین تاثیر (ایم ڈی تاثیر) کی تخلیق ہے۔

Correct Answer: اشفاق احمد

مشہور و معروف اردو افسانہ 'گڈریا' نامور ادیب اشفاق احمد نے لکھا تھا۔

Correct Answer: اسد اللہ غالب

یہ اردو ادب کا مشہور ترین شعر عظیم شاعر مرزا اسد اللہ خاں غالب کا ہے۔

Correct Answer: Surah Fateha

Surah Al-Fateha is famously referred to as Umm-ul-Kitab (The Mother of the Book).

Correct Answer: Hazrat Usman Bin Talha (RA)

After the Conquest of Makkah, the Holy Prophet (SAW) returned the key of the Kaaba to Usman bin Talha (RA) permanently.

Correct Answer: 12 years

The Holy Prophet (PBUH) traveled to Syria on a trade journey with his uncle Abu Talib when he was 12 years old.