1.

A company is owned by its

(A) directors
(B) managers
(C) shareholders
(D) employs

2. Shares of listed companies are traded in the

(A) stock exchange
(B) option market
(C) future exchange
(D) none of these

3. What from the following is an integral part of business?

(A) Profit
(B) Risk
(C) Certainty
(D) Profit and Risk

4. A company sold goods of worth Rs.1 million, the manufacturing cost of the goods
were Rs.600,000. The transport used in the sale cost Rs.100,000 and the wages paid
during the process of sale were also Rs.100,000. What is the gross and net profit?
(A) Gross Profit = Rs.600,000 and Net Profit = Rs.400,000
(B) Gross Profit = Rs.400,000 and Net Profit = Rs.600,000
(C) Gross Profit = Rs.200,000 and Net Profit = Rs.400,000
(D) Gross Profit = Rs.400,000 and Net Profit = Rs.200,000

5. Every transaction has a _____ effect.

(A) zero
(B) single
(C) double
(D) triple

ANSWERS: SENIOR AUDITOR TEST SAMPLE PAPER

1(C) 2(A) 3(B) 4(D) 5(C)
6. The main source(s) of Generally Accepted Accounting Principles (GAAP) is/are:
(A) Company Law
(B) Accounting standards
(C) Both A and B
(D) None of these

7. What standards are used to prepare financial statements by most of the countries
and companies
(A) International Financial Reporting Standards
(B) International Financial Accounting Standards
(C) International Accounting & Auditing Standards
(D) International Risk Reporting Standards

8. The correct form of Accounting equation is

(A) Assets + Liabilities = Equity
(B) Assets – Liabilities = Equity
(C) Assets – Receivable = Equity
(D) Assets + Receivable = Equity

9. A company sold goods worth $5,000 on 5 June and $10,000 on 28 June. The
company received the first payment on 25 June and second on 7 July. The company
prepared the financial statement on 30 June. What would be the total sale on the
financial statement?
(A) $0
(B) $5,000
(C) $10,000
(D) $15,000

10. Advance payments are recognized as

(A) receivable
(B) payable
(C) bad debt
(D) none of these

ANSWERS: ACCOUNTING QUIZ

6(C) 7(A) 8(B) 9(D) 10(A)
11. What from the following is NOT a current asset?
(A) Patent rights
(B) Inventory
(C) Cash
(D) Trade receivables

12. What from the following is NOT a non-current asset?

(A) Capital
(B) Property
(C) Patent rights
(D) Inventory

13. What from the following is/are NOT tangible asset(s)?

I. Patent rights
II. Goodwill
III. Land
(A) I only
(B) II only
(C) I and II only
(D) I, II and III

14. A machine price was $1,000 and was carried through a truck. The truck’s fares were
$500. The engineers charged $500 for the installation. The cost of the machine is?
(A) $1,000
(B) $1,500
(C) $2,000
(D) $2,500

15. 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

ANSWERS: ACCOUNTING MCQS

11(A) 12(D) 13(C) 14(C) 15(B)
16. The accounting process of allocation cost of intangible assets is called
(A) Amortization
(B) Depletion
(C) Going Concern
(D) Residual Value

17. The process of recording consumption of natural resources (or wasting assets) is
called
(A) Amortization
(B) Depletion
(C) Going Concern
(D) Residual Value

18. The concept that the enterprise will continue in a foreseeable future is known as
(A) Amortization
(B) Depletion
(C) Going Concern
(D) Residual Value

19. What from the following is NOT a capital expense?

(A) Purchase of property
(B) Purchase of office equipment
(C) Replacement of a vehicle,
(D) Repair of a vehicle

20. An item of equipment cost $300,000 and has a residual value of $50,000 at the end
of its expected useful life of four years. What is the depreciable amount?
(A) $50,000
(B) $250,000
(C) $300,000
(D) $350,000

ANSWERS: ACCOUNTING QUIZZES

16(A) 17(B) 18(C) 19(D) 20(B)
21. The expected disposal value of the asset (after deducting disposal costs) at the end
of its expected useful life is called
(A) residual value
(B) net book value
(C) depreciation
(D) substance over form

22. The figure that appears in the statement of financial position, after the depreciation,
is known as
(A) depreciation
(B) substance over form
(C) residual value
(D) net book value

23. Which from the following asset is NOT depreciated?

I. Advances
II. Land
III. Machinery
(A) I only
(B) II only
(C) I and II
(D) II and III

24. Depreciation is normally charged as

(A) payable
(B) receivable
(C) expenses
(D) advances

25. A company purchases a non-current asset in Year 1 for $90,000. The depreciation
charge is $15,000. What net book value would be recorded in financial position
statement (or balance sheet) at the end of Year-2?
(A) $75,000
(B) $60,000
(C) $30,000
(D) $15,000

ANSWERS: ACCOUNTING MULTIPLE CHOICE QUESTIONS

21(A) 22(D) 23(C) 24(C) 25(B)
26. All procurement opportunities over _______ rupees should be advertised in the
newspaper.
(A) 0.5 million
(B) 1.5 million
(C) 1.5 million
(D) 2.0 million

27. The procurement opportunities over two million rupees should be advertised in at
least _______ newspaper(s).
(A) one
(B) two
(C) three
(D) four

28. The principal method for the procurement of goods, services and works is
(A) open competitive bidding
(B) close competitive bidding
(C) FIFO
(D) LIFO

29. The bidder with the _______ evaluated bid shall be awarded the procurement
contract.
(A) highest
(B) lowest
(C) average
(D) zero variance

30. Where needed the procuring agency shall require the successful bidder to furnish a
performance guarantee which shall not exceed _______ of the contract amount.
(A) 5%
(B) 7.5%
(C) 10%
(D) 12.5%

ANSWERS: PUBLIC PROCUREMENT RULES

26(D) 27(B) 28(A) 29(B) 30(C)
31. The bids for procurement opportunities shall be submitted in a/an _______ package
or packages.
(A) open
(B) sealed
(C) transparent
(D) none of these

32. Where the procuring agency require the bidders to furnish a bid security, the bid
security should not exceed _______ of the bid price.
(A) 5.0%
(B) 7.5%
(C) 10.0%
(D) 12.5%

33. All bids shall be opened

(A) randomly
(B) privately
(C) secretly
(D) publicly

34. There are _____ procedures of open competitive bidding.

(A) 2
(B) 3
(C) 4
(D) 5

35. The main open competitive bidding procedure is

(A) single stage one envelope bidding
(B) single stage two envelope procedure
(C) two stage bidding procedure
(D) two stage two envelope bidding procedure

ANSWERS: PUBLIC PROCUREMENT RULES MCQS

31(B) 32(A) 33(D) 34(C) 35(A)
36. Where alternative technical proposals are possible, the bidding process used is
(A) single stage one envelope procedure
(B) single stage two envelope procedure
(C) two stage bidding procedure
(D) two stage two envelope bidding procedure

37. Where the bids are to be evaluated on technical and financial grounds and price is
taken into account after technical evaluation, the bidding process used is
(A) single stage one envelope procedure
(B) single stage two envelope procedure
(C) two stage bidding procedure
(D) two stage two envelope bidding procedure

38. In large and complex contracts where technically unequal proposals are likely to be
encountered, or there are two or more equally acceptable technical solutions available
to the procuring agency, the bidding process used is
(A) single stage one envelope procedure
(B) single stage two envelope procedure
(C) two stage bidding procedure
(D) two stage two envelope bidding procedure

39. Any bidder feeling aggrieved by any act of the procuring agency may lodge a written
complaint concerning his grievances not later than _______ days after the
announcement of the bid evaluation report.
(A) 7
(B) 10
(C) 15
(D) 30

40. The committee shall investigate and decide upon the complaint within _______ days
of the receipt of the complaint.
(A) 15
(B) 30
(C) 45
(D) 60

ANSWERS: PUBLIC PROCUREMENT

36(D) 37(B) 38(C) 39(C) 40(A)