Q 1
Deferred tax payments would be shown as _______ while calculating net cash flows.
A. Non-cash charges
B. Non-cash revenues
C. Income expense
D. Current liabilities
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Economics & Commerce MCQs in topical order.
Economics, commerce, finance and business-related MCQs for competitive exams.
222
Total MCQs
80
Topics
Quiz Mode
Available
1
Accounting
Q 2
_______ represents the net worth of a business.
A. Assets net of liabilities
B. Liabilities net of assets
C. Liabilities net of earning
D. Earnings per share
Q 3
The working capital reaches to zero when the current ratio is:
A. 1
B. 2
C. 3
D. None of these
Q 4
Accounting principles are generally based on:
A. Practicability
B. Subjectivity
C. Convenience in recording
D. None of the above
Q 5
Real accounts are related to:
A. Assets
B. Expense and incomes
C. Customers and creditor
D. None of the above
Q 6
Quick Asset includes which of the following:
A. Cash
B. Accounts receivable
C. Both Cash and Accounts receivable
D. Inventory
Q 7
Depreciation Expense is:
A. A cash inflow
B. A cash outflow
C. Added to the accumulated depreciation
D. Ignored when proper cash flow statements are prepared
Q 8
Double entry book-keeping was fathered by:
A. F.W. Taylor
B. Henry Fayol
C. Lucas Pacioli
D. None of the above
2
Finance
Q 1
_______ is outcome of payment divided by the interest rate.
A. Due perpetuity
B. Deferred perpetuity
C. Present value of perpetuity
D. Future value of perpetuity
Q 2
Sources of funds can be increased by:
A. Describing selling prices
B. Increasing expenditure
C. By opting efficient processes
D. None of above
Q 3
Return on investment is computed as:
A. Investment / Profit x 100
B. (Profit / Investment) x 100
C. (Profit - dividend) / investment x 100
D. None of these
Q 4
Under the Rule of thumb a good current ratio is:
A. 6:1
B. 10:1
C. 1:1
D. 2:1
Q 5
PSX is a/an _______ company.
A. Limited by shares
B. Unlimited liability
C. Single member
D. Limited by guarantee
Q 6
The smallest unit of ownership of a company is:
A. A share
B. A debenture
C. Invest money
D. Capital deposit
Q 7
Common shareholder equity divided by the number of outstanding shares results in:
A. Common stock
B. Book value
C. Page writer
D. None of these
Q 8
The term mutually exclusive investments means:
A. Choose only the best investments
B. Selection of one investment precludes the selection of an alternative
C. The elite investment opportunities will get chosen
D. There are no investment options available
3
Cost Accounting
Q 1
Conversion cost is:
A. Material Cost + Overhead Cost
B. Direct Labour + Material Cost
C. Direct Labour - Material Cost
D. Labour Cost + Overhead Cost
Q 2
Process Costing is relevant to:
A. Cement industry
B. Job Order cost-oriented Projects
C. Banking industry
D. None of the above
Q 3
Sugarcane used in a sugar mill is:
A. Variable cost
B. Semi Variable Cost
C. Fixed cost
D. Step fixed cost
Q 4
Conversion Cost is calculated as under:
A. Labour Plus Materials
B. Labour plus overheads
C. Labour minus overhead
D. None of these
Q 5
Contribution margin is also known as:
A. Marginal income
B. Gross profit
C. Net profit
D. Net loss
Q 6
The primary objective of cost accounting is to:
A. Ascertain the cost of goods and services
B. Ascertain the profit
C. Inventory valuation
D. Fixation of selling price
Q 7
Variable manufacturing overhead (VMOH) and Fixed manufacturing overhead (FMOH) is a part of:
A. Standard cost
B. Manufacturing overhead cost
C. Activity based cost
D. Marginal overhead cost
Q 8
_______ is the aggregate of direct material cost, direct labor cost, and direct expenses.
A. Prime cost
B. Bottom line cost
C. Variable cost
D. None of these
4
Accounting Principles
Q 1
Patents, Copyrights and Trademarks are:
A. Investments
B. Intangible assets
C. Current assets
D. Fixed assets
Q 2
Which of the following is not a current asset?
A. Temporary investment
B. Salary paid in advance
C. Inventory
D. Preliminary expenses
Q 3
A _______ is a potential obligation that may arise from an event that has not yet occurred.
A. Current liabilities
B. Contingent liability
C. Long term liabilities
D. None of these
Q 4
The main operation expenses of a business are termed as:
A. Operating expense
B. Administration expense
C. Non-administration expense
D. Selling expense
Q 5
Assets are usually shown in Balance Sheet at:
A. Unexpired cost
B. Replacement cost
C. Revalue cost
D. Market value
Q 6
Residual value is the:
A. Value of the asset when it is purchased
B. Value of the asset at the end of its useful life
C. Cost of the asset
D. Allocation of the cost
Q 7
Which of the following is a revenue reserve?
A. Security premium account
B. Capital reserve
C. Capital redemption reserve
D. None of these
Q 8
Bank overdraft is a:
A. Current liability
B. Contingent liability
C. Current asset
D. None of these
5
Marketing
Q 1
A service firm may have additional segment of marketing mix:
A. People
B. Price
C. Place
D. Promotion
Q 2
A strategy where a firm tries to expand the market and move to a new market with an existing product is called:
A. Market development
B. Diversification
C. Product development
D. Market Penetration
Q 3
Gathering information from advertising campaigns and sales people could be better named as:
A. Personal sources of information gathering
B. Experiential sources of information gathering
C. Commercial sources of information gathering
D. None of these
Q 4
Marketing is an:
A. Outside in activity
B. Inside out activity
C. Both in and outside activity
D. None of these
Q 5
Selling is different from marketing, as:
A. Selling is outside in activity
B. Selling is inside out activity
C. Marketing is inside out activity
D. All of these
Q 6
An advertisement which conceals organization identity:
A. Display advertising
B. Blind advertising
C. Native advertising
D. None of these
Q 7
The types of good that are tangible in nature and that can be consumed in few uses are classified as:
A. Durable goods
B. Non-durable goods
C. Services
D. Augmented goods
Q 8
Which is a system of selling goods directly to customers through a network of self-employed people?
A. Multilevel marketing
B. Whole sale marketing
C. Vertical marketing
D. None of these
6
Corporate Finance
Q 1
Right shares are the shares:
A. Offered to the existing equity shareholders
B. Issued by a newly formed company
C. Legally issued to the public at large
D. That have a right of redemption
Q 2
Undistributed profits are also known as:
A. Corporate saving
B. Retained earning
C. General reserve
D. All of these
Q 3
Capital Structure is an optimal mix of which one of the following options:
A. Sales and profits
B. Debt and equity
C. Current assets and fixed assets
D. None of these
Q 4
Bonus shares are issued out of:
A. Capital reserve
B. Free reserve
C. Share premium
D. None of these
Q 5
Preference shareholders are _____ of the company:
A. Creditors
B. Owners
C. Customers
D. Borrowers
Q 6
Which of these options, apart from cash, are instruments to distribute profits to shareholders?
A. Stock purchase
B. Bonus shares
C. Stock split
D. All of these
7
Financial Ratios
Q 1
Net profit ratio is a:
A. Long term solvency ratio
B. Short term solvency ratio
C. Turnover ratio
D. Profitability ratio
Q 2
Liquid ratio is also known as _______ ratio:
A. Inventory
B. Current
C. Acid test
D. Debt equity
Q 3
Fixed assets turnover ratio is a:
A. Long-term solvency ratio
B. Short-term solvency ratio
C. Turnover ratio
D. Profitability ratio
Q 4
Ratio of net profit before interest and tax to sales is:
A. Capital gearing
B. Solvency ratio
C. Operating profit ratio
D. None of these
Q 5
If the current ratio is 2:1 and working capital is Rs. 60,000, what is the value of current assets?
A. Rs. 60000
B. Rs. 100000
C. Rs. 120000
D. Rs. 180000
Q 6
Liquid Ratio is equal to liquid assets divided by:
A. Current Liabilities
B. Total Liabilities
C. Contingent Liabilities
D. None of these
8
Financial Statements
Q 1
Balance Sheet shows:
A. The financial performance at particular date
B. The financial position at particular date
C. The financial position for an accounting period
D. The financial performance for an accounting period
Q 2
Income statement is also known as:
A. Statement of earnings
B. Statement of balance sheet
C. Statement of income
D. Statement of operations
Q 3
Which statement shows the flow of cash and cash equivalents during the financial period:
A. Statement of changes in equity
B. Cash flow statement
C. Balance sheet
D. Income statement
Q 4
Which item comes under financial activities in cash flow?
A. Redemption of Preference Share
B. Issue of Preference Share
C. Interest paid
D. All of these
Q 5
The statement of cash flow clarifies cash flows according to:
A. Inflow and Outflow
B. Operating, Investing, and Financing Activities
C. Operating and non-operating Flows
D. None of these
Q 6
The basic financial statements include:
A. Statement of Cash Flows
B. Statement of Retained Earnings
C. Balance Sheet and Income Statement
D. All of these
9
Macroeconomics
Q 1
A current account surplus implies that:
A. The country is a net lender to the rest of the world
B. The country is running a net capital account surplus
C. Foreign investment in domestic securities is at very low levels
D. None of these
Q 2
The major government policies that can be used to pursue macroeconomic goals are:
A. Fiscal Policy and Monetary Policy
B. Trade and Tariffs
C. Price Controls
D. Supply-side Policies
Q 3
Change in government policy within the content of tax:
A. Tax policy
B. Fiscal policy
C. Monetary policy
D. Regulatory policy
Q 4
When government revenue exceeds government expenditure, it is known as _____ budget.
A. Surplus
B. Zero
C. Balanced
D. Deficit
Q 5
_____ is the subject matter of Macroeconomics.
A. Factory pricing
B. Individual incomes
C. Growth theory
D. Market structures
Q 6
Income and expenditure depict the:
A. Surplus
B. Deficit Budget
C. Fiscal Deficit
D. None of these
10
Microeconomics
Q 1
Microeconomics theory is also known as:
A. Price theory
B. Surety theory
C. Capital consumption theory
D. None of these
Q 2
What happens when an industry operates beyond the optimum level of production?
A. It maximizes profits
B. It achieves economies of scale
C. It faces diminishing returns and inefficiency
D. It experiences rapid growth and expansion
Q 3
Price elasticity of demand that is called inelastic:
A. More than 1
B. Less than 1
C. Equal to 1
D. None of these
Q 4
The basic factors of production are land, labour, capital and:
A. Enterprise
B. Investment
C. Machinery
D. Resources
Q 5
The concept of consumer surplus was developed by:
A. Alfred Marshall
B. Gotham
C. Benethan
D. None of these
Q 6
An exceptional demand curve is one that slopes:
A. Upward to the left
B. Downward to the right
C. Upward to the right
D. Horizontally
11
Auditing
Q 1
Process of verifying the documentary evidences of transactions is known as:
A. Auditing
B. Vouching
C. Testing
D. Verification
Q 2
_______ is the phase of an audit where the auditor gathers samples to identify any material misstatements in the client's accounting records or other data.
A. Substantive testing
B. Control testing
C. Detective testing
D. None of these
Q 3
Verification of the value of assets, liabilities, the balance of reserves, provision and the amount of profit earned or loss suffered a firm is called:
A. Continuous audit
B. Interim audit
C. Balance sheet audit
D. Partial audit
Q 4
Verification refers to:
A. Confirming ownership
B. Valuation and Possession
C. Actual existence
D. All of these
Q 5
Auditing refers to:
A. Reporting the financial information
B. Examination of financial information
C. Preparation of financial statements
D. Maintaining the ledger accounts
12
Banking
Q 1
The ownership of central bank of a country may belong to:
A. Government
B. Private ownership
C. Both Government and Private ownership
D. None of these
Q 2
A market for wholesale loans and deposits traded between banks is called:
A. Interbank market
B. Investor market
C. Subsidiary market
D. None of these
Q 3
Banks realize dividend and interest on behalf of customer is included in:
A. Beneficiary
B. Agency
C. Nominee
D. None of these
Q 4
Which is the primary activity of a commercial bank?
A. Maintaining deposit accounts including current accounts
B. Issue and pay cheques
C. Collect cheques for the bank's customers
D. All of these
Q 5
The core function of the State Bank of Pakistan is to:
A. Inflation control
B. Lending business
C. Implement monetary policy
D. None of these