PPSC Assistant Director Revenue Past Paper 2023 Solved Solved MCQs

Correct Answer: Total customer value and total customer cost

Customer perceived value is the difference between the prospective customer's evaluation of all the benefits and all the costs of an offering.

Correct Answer: Debt and equity

Capital structure refers to the specific mix of debt and equity used to finance a company's assets and operations.

Correct Answer: Free reserve

Bonus shares are usually issued out of free reserves, which represent retained earnings available for distribution to shareholders.

Correct Answer: Owners

While preference shares have features of debt, preference shareholders hold equity capital and are technically considered part-owners, albeit often without voting rights.

Correct Answer: All of these

While bonus shares directly capitalize profits, stock purchases return value, and all serve as non-cash methods to manage and deliver shareholder value broadly.

Correct Answer: Total expenses = Total revenue

The break-even point is the level of production at which the costs of production equal the revenues for a product.

Correct Answer: Conversion cost

Conversion costs consist of direct labor and manufacturing overhead (including supervisor wages) required to convert raw materials into finished goods.

Correct Answer: Advertising cost

Selling expenses are costs incurred to promote and sell products, which directly includes advertising and marketing costs.

Correct Answer: Cost or market whichever is lower

Floating assets (current assets like inventory) are typically valued at the lower of cost or market value, following the conservatism principle.

Correct Answer: Systematic risk

Systematic risk, also known as market risk, affects the overall market and cannot be mitigated through diversification.

Correct Answer: Specific risk

Unsystematic risk is company-specific or industry-specific risk that can be eliminated through proper diversification.

Correct Answer: Planning

Planning is the primary function of management as it lays the foundation for all other functions by setting objectives and determining courses of action.

Correct Answer: Ethnography

Ethnography is a qualitative research method that involves deeply observing and interacting with subjects in their real-life environment.

Correct Answer: Applied Research

Applied research is a non-systematic methodology used to find solutions to specific, practical problems.

Correct Answer: General partnership

In a general partnership, all partners have unlimited liability, meaning their personal assets can be used to settle business debts.

Correct Answer: Rs. 120000

Current Ratio = CA/CL = 2/1 (so CA = 2CL). Working Capital = CA - CL = 60000. Substituting CA gives 2CL - CL = 60000, meaning CL = 60000. Therefore, CA = 2 * 60000 = 120,000.

Correct Answer: Current Liabilities

The liquid ratio (or quick ratio) measures a company's ability to pay off current liabilities using its most liquid assets.

Correct Answer: All of these

In auditing, verification ensures the actual existence, proper valuation, possession, and legal ownership of assets and liabilities.

Correct Answer: Examination of financial information

Auditing is the independent, objective examination of a company's financial statements and information to ensure accuracy and compliance.

Correct Answer: Consensus

Consensus refers to a general agreement among all the parties involved in a discussion or negotiation.

Correct Answer: Not participating in operational risk

Debtors (or creditors to a firm) typically receive fixed interest rather than profit shares because they do not bear the operational and equity risks of the business.

Correct Answer: Preferred stock

Preferred stock functions as a hybrid security, typically paying a fixed, predetermined dividend (certain return) before common shareholders receive payouts.

Correct Answer: Based on the systematic risk of the security

CAPM calculates expected return by adding a risk premium to the risk-free rate, where the premium is directly proportional to the asset's systematic risk (beta).

Correct Answer: Investing in more than one asset

Diversification involves spreading investments across various assets to reduce exposure to the risks of any single asset.

Correct Answer: Capital structure

Capital structure represents a company's financing mix, which primarily includes long-term debt and equity.

Correct Answer: Capital expenditure

Capital expenditures are major, non-recurring investments in long-term assets, unlike revenue expenditures which are regular operating costs.

Correct Answer: Cash book

Petty cash is maintained in a petty cash book, which is essentially a subsidiary record that forms part of the main cash book in accounting.

Correct Answer: Nominal account

A joint venture account functions like a Profit and Loss account for a specific venture, thereby classifying it as a nominal account.

Correct Answer: Expenses are greater than income

In an income statement, a net loss is realized when total operating and non-operating expenses exceed total revenues.

Correct Answer: Current assets

Current assets are highly liquid resources like cash, inventory, and receivables that can be converted into cash within a standard operating cycle.

Correct Answer: Obligations

In accounting, a liability is a present obligation of the enterprise arising from past events, requiring future resource outflow.

Correct Answer: Return inward account

Goods returned by customers are sales returns, which are debited to the Return Inward account, reducing gross sales.

Correct Answer: Job description

A job description outlines the characteristics, duties, responsibilities, and conditions of a specific job.

Correct Answer: Staff functions

HRM is inherently a staff function that advises and supports line managers regarding employee recruitment, training, and welfare.

Correct Answer: Fiscal policy

Fiscal policy refers to the use of government spending and taxation to influence the economy.

Correct Answer: Surplus

A budget surplus occurs when income or receipts exceed outlays or expenditures.

Correct Answer: Growth theory

Economic growth theory examines the long-term trends and factors that increase an entire economy's output, a core macroeconomic subject.

Correct Answer: Asset

In corporate finance metrics, efficient utilization of assets (measured via Return on Assets) is a primary driver of high profitability.

Correct Answer: Blocking of funds

Extending the credit period means accounts receivable remain uncollected for longer, tying up or blocking working capital funds.

Correct Answer: International Auditing and Assurance Standards Board

The IAASB is the independent standard-setting body that issues International Standards on Auditing (ISAs).

Correct Answer: There is enough of it to afford a reasonable basis for an opinion on financial statements.

Sufficiency refers to the quantity of audit evidence needed to form a reasonable foundation for an auditor's opinion.

Correct Answer: Security analysis and portfolio management

Traditional investment process involves evaluating individual securities (security analysis) and then combining them optimally (portfolio management).

Correct Answer: Blind advertising

Blind advertising is a promotional campaign or job listing that intentionally leaves out the name of the company posting it.

Correct Answer: Non-durable goods

Non-durable goods are tangible products that are normally consumed in one or a few uses, like food or soap.

Correct Answer: Multilevel marketing

Multilevel marketing (MLM) is a direct sales strategy relying on a network of independent distributors to sell products.

Correct Answer: Agency

When a bank acts on behalf of a customer to collect dividends or interest, it is performing an agency function.

Correct Answer: All of these

Commercial banks undertake primary functions such as accepting various deposits and facilitating cheque payments and collections.

Correct Answer: All of these

All listed statements correctly describe the origins, objectives, and regulatory scope of the WTO.

Correct Answer: None of these

Variability, intangibility, and inseparability are all core characteristics of a service. Therefore, 'None of these' is the correct answer to the negative question.

Correct Answer: Services are invariable

Services are highly variable (heterogeneous) because they depend on who provides them and when/where they are provided.

Correct Answer: Tolerance Zone

The 'Zone of Tolerance' is the range within which customers are willing to accept variations in service delivery.

Correct Answer: General reserve

A general reserve consists of accumulated retained earnings which are freely available to be distributed as dividends to shareholders.

Correct Answer: Entrepreneurial mode

In the entrepreneurial mode, strategy making is typically dominated by a strong, visionary chief executive.

Correct Answer: Strengths and weaknesses

In SWOT analysis, Strengths and Weaknesses represent internal factors of an organization, while Opportunities and Threats are external.

Correct Answer: Less than 1

Demand is considered inelastic when the absolute value of price elasticity is less than 1, meaning quantity responds proportionately less to price changes.

Correct Answer: Enterprise

The four classic factors of production are land, labor, capital, and entrepreneurship (enterprise).

Correct Answer: Alfred Marshall

The concept of consumer surplus, measuring the benefit to consumers from paying less than their maximum willingness, was popularized by Alfred Marshall.

Correct Answer: Upward to the right

In cases of Giffen goods or Veblen goods, an exceptional demand curve disobeys the law of demand and slopes upward to the right.

Correct Answer: Promotion being a bigger step when it happens

Delayering removes hierarchical levels, meaning fewer middle-management positions exist. Thus, achieving a promotion entails a much larger jump in responsibility.

Correct Answer: Matrix form

A matrix structure combines two forms of departmentalization (typically functional and product) to leverage the benefits of both.

Correct Answer: Social securities

Social security systems redistribute wealth by taxing higher-income groups and providing welfare, thereby reducing income inequality.

Correct Answer: Adam Smith

Scottish economist Adam Smith published 'The Wealth of Nations' in 1776, founding classical economics.

Correct Answer: Registered capital

Authorized capital is the maximum amount of share capital a company is allowed to issue, also known as registered or nominal capital.

Correct Answer: Arithmetic mean

The arithmetic mean is simply the sum of a collection of numbers divided by the count of numbers in the collection, commonly referred to as the average.

Correct Answer: Square root

Standard deviation is mathematically defined as the square root of the variance, measuring the dispersion of a dataset.

Correct Answer: Probability

In probability sampling (or simple random sampling), every unit in the population has an equal chance of being selected.

Correct Answer: Mean

The arithmetic mean is the most widely used and statistically robust measure of central tendency.

Correct Answer: 0

A fundamental property of the arithmetic mean is that the sum of the deviations of all observations from the mean is always zero.

Correct Answer: Rs. 2000 profit

Gains: Stock (+2500) + Building (+2500) = 5000. Losses: Creditors (-1000) + Unrecorded Liability (-2000) = 3000. Net result = 5000 - 3000 = Rs. 2000 Profit.

Correct Answer: 28

The first five prime numbers are 2, 3, 5, 7, and 11. Their sum is 2 + 3 + 5 + 7 + 11 = 28.

Correct Answer: Rs. 110250

For half-yearly, rate = 5% and time = 2 periods. Amount = 100000 * (1.05)^2 = 110,250.

Correct Answer: A company logo designed to project the organization's image

Visual identities like logos communicate brand values implicitly, making them a form of nonverbal, visual communication.

Correct Answer: To finish

The idiom 'to cap it all' means to crown, finish off, or round off a series of events (often bad ones) perfectly.

Correct Answer: He exclaimed that it was a very cold day.

In exclamatory sentences involving 'What', it transforms into an exclamation clause with 'very' showing the intensity in indirect speech.

Correct Answer: He urged them to be quiet and listen to his words.

Imperative sentences generally use 'urged', 'ordered', or 'advised'. The pronoun 'my' correctly changes to 'his'.

Correct Answer: at

The verb 'aim' takes the preposition 'at' when directing an action or weapon toward a target.

Correct Answer: Sacred

Hallowed means made holy or highly respected, hence its synonym is sacred.

Correct Answer: A supervening impossibility

The doctrine of frustration or impossibility (supervening impossibility) occurs when an unforeseen event makes contract performance fundamentally impossible.

Correct Answer: International Bank for Reconstruction and Development

The IBRD is the founding and primary institution of the World Bank Group, often synonymous with the World Bank.

Correct Answer: 8 March

International Women's Day is a global holiday celebrated annually on March 8 to commemorate the cultural, political, and socioeconomic achievements of women.

Correct Answer: Bureaucracy

A bureaucracy is a system of administration where state officials, rather than elected representatives, make important decisions.

Correct Answer: Japanese attack on Pearl Harbour

The surprise military strike by the Imperial Japanese Navy upon the United States at Pearl Harbor on December 7, 1941, prompted the U.S. entry into WWII.

Correct Answer: Glasgow

The 2021 United Nations Climate Change Conference (COP26) was held at the SEC Centre in Glasgow, Scotland.

Correct Answer: August 16, 1946

Muhammad Ali Jinnah announced August 16, 1946, as 'Direct Action Day' to demonstrate support for an independent Muslim state.

Correct Answer: 2014

This is widely regarded as a flawed/ambiguous question in PPSC records. However, the official answer key marks 2014.

Correct Answer: Kashf Foundation

Roshaneh Zafar founded the Kashf Foundation in 1996, Pakistan's first specialized microfinance institution.

Correct Answer: Russia

Pakistan shares borders with Afghanistan, China, India, and Iran. It does not share a border with Russia.

Correct Answer: 16 October 1905

The Partition of Bengal was executed by Lord Curzon, Viceroy of India, taking effect on October 16, 1905.

Correct Answer: 1956

Pakistan became a republic when its first constitution was adopted on March 23, 1956.

Correct Answer: Taxila

Taxila is a renowned archaeological site and is considered the Pearl of the Gandhara Civilization due to its rich Buddhist heritage.

Correct Answer: Chlorofluorocarbon

CFCs release chlorine atoms into the stratosphere under UV radiation, which act as catalysts heavily destroying ozone molecules.

Correct Answer: Transparent objects

Transparent materials, like clear glass, allow light to pass through them completely, making objects on the other side clearly visible.

Correct Answer: Ctrl+M

Ctrl+M is the universal Microsoft shortcut used to insert a new slide into a PowerPoint presentation.

Correct Answer: Charles Babbage

Charles Babbage conceptualized and designed the first automatic computing engines (the Analytical Engine), earning him the title 'father of the computer'.

Correct Answer: A collection of linked information residing on computers connected by the internet

The WWW is an information system where documents and web resources are identified by URLs and are accessible over the Internet.

Correct Answer: 1024 megabytes

In classical computing terminology, memory multiplies by 1024 (2^10). Hence, 1 Gigabyte (GB) = 1024 Megabytes (MB).

Correct Answer: Count

In both Excel and SQL databases, the COUNT() function is used to return the number of items or rows present in a column.

Correct Answer: Jigar Moradabadi

Shola-e-Toor is a famous collection of Urdu ghazals composed by the renowned poet Jigar Moradabadi.

Correct Answer: سبط علی صبا

یہ مشہور شعر اردو کے معروف شاعر سبط علی صبا کا ہے۔

Correct Answer: Surah Fateha

Surah Al-Fateha is famously known as the 'Preface' (Umm al-Kitab or Opening) of the Holy Quran.