PPSC 60 Jobs Deputy Accountant in Finance Department Written Test MCQs Syllabus Paper PDF Apply Online Now
Which financial statement reports a company’s financial position at a specific point in time?
a) Income statement
b) Balance sheet
c) Cash flow statement
d) Statement of retained earnings
Answer: b) Balance sheet
What accounting principle requires that expenses should be recognized in the same period as the related revenues they help to generate?
a) Matching principle
b) Conservatism principle
c) Materiality principle
d) Revenue recognition principle
Answer: a) Matching principle
Which of the following is considered a current asset?
a) Equipment
b) Land
c) Accounts receivable
d) Buildings
Answer: c) Accounts receivable
What does the term “amortization” refer to in accounting?
a) Spreading the cost of an intangible asset over its useful life
b) Recording the reduction in value of tangible assets
c) Recognizing the cost of inventory
d) Recording changes in the value of investments
Answer: a) Spreading the cost of an intangible asset over its useful life
The formula to calculate Return on Investment (ROI) is:
a) Net Income / Total Assets
b) Net Income / Shareholder’s Equity
c) Net Profit / Revenue
d) Net Income / Cost of Goods Sold
Answer: a) Net Income / Total Assets
Which accounting principle suggests that assets should be recorded at their original cost on the balance sheet?
a) Historical cost principle
b) Conservatism principle
c) Revenue recognition principle
d) Accrual principle
Answer: a) Historical cost principle
What does the term “liquidity” refer to in accounting?
a) A company’s ability to meet its short-term obligations
b) The ability to generate profits
c) The efficiency of inventory management
d) The return on investment
Answer: a) A company’s ability to meet its short-term obligations
The formula to calculate the debt-to-equity ratio is:
a) Total Liabilities / Total Equity
b) Total Assets / Total Equity
c) Total Liabilities / Net Income
d) Total Assets / Net Income
Answer: a) Total Liabilities / Total Equity
What is the purpose of the Statement of Cash Flows?
a) To report a company’s financial performance over a specific period
b) To show changes in a company’s equity during a period
c) To detail a company’s cash inflows and outflows during a period
d) To demonstrate a company’s long-term financial position
Answer: c) To detail a company’s cash inflows and outflows during a period
When a company uses the straight-line method for depreciation, what does this mean?
a) The asset’s value declines faster initially and slower later in its useful life
b) The asset’s value declines evenly over its useful life
c) The asset’s value remains constant over time
d) The asset’s value increases over time
Answer: b) The asset’s value declines evenly over its useful life
What is the primary purpose of the Adjusting Entries in accounting?
a) To close temporary accounts at the end of the accounting period
b) To record transactions that have not been previously recorded
c) To ensure that expenses and revenues are correctly recorded in the right accounting period
d) To reconcile bank statements with company records
Answer: c) To ensure that expenses and revenues are correctly recorded in the right accounting period
Which financial statement is also known as the “Statement of Financial Position”?
a) Income statement
b) Balance sheet
c) Cash flow statement
d) Statement of retained earnings
Answer: b) Balance sheet
The accounting equation is represented as:
a) Assets = Liabilities + Owner’s Equity
b) Assets = Liabilities – Owner’s Equity
c) Assets – Liabilities = Owner’s Equity
d) Assets + Owner’s Equity = Liabilities
Answer: a) Assets = Liabilities + Owner’s Equity
How does an increase in accounts payable affect the balance sheet?
a) Decreases liabilities and decreases equity
b) Increases assets and decreases liabilities
c) Increases liabilities and increases equity
d) Increases assets and increases liabilities
Answer: c) Increases liabilities and increases equity
Which financial ratio measures a company’s ability to pay off short-term liabilities with its most liquid assets?
a) Debt-to-equity ratio
b) Current ratio
c) Return on investment ratio
d) Inventory turnover ratio
Answer: b) Current ratio
What is the purpose of the trial balance in accounting?
a) To identify errors in recording transactions
b) To prepare financial statements
c) To summarize a company’s financial performance
d) To calculate depreciation
Answer: a) To identify errors in recording transactions
Which accounting principle requires that assets and liabilities should be recorded at fair market value?
a) Conservatism principle
b) Revenue recognition principle
c) Historical cost principle
d) Matching principle
Answer: a) Conservatism principle
A company’s Net Income is $50,000, and its Total Assets are $500,000. What is the Return on Assets (ROA) ratio?
a) 0.1 or 10%
b) 1 or 100%
c) 10 or 1000%
d) 0.01 or 1%
Answer: a) 0.1 or 10% (Net Income / Total Assets = $50,000 / $500,000 = 0.1 or 10%)
What does the term “working capital” represent?
a) The excess of current assets over current liabilities
b) The total assets of a company
c) The total liabilities of a company
d) The net income of a company
Answer: a) The excess of current assets over current liabilities
Which accounting statement shows changes in equity from the beginning to the end of a specific period?
a) Income statement
b) Balance sheet
c) Statement of cash flows
d) Statement of retained earnings
Answer: d) Statement of retained earnings
When using the double-entry accounting system, what happens when an expense is incurred?
a) Assets increase
b) Liabilities decrease
c) Expenses increase and equity decreases
d) Revenue decreases
Answer: c) Expenses increase and equity decreases
The process of systematically allocating the cost of an intangible asset over its useful life is known as:
a) Amortization
b) Depreciation
c) Accrual
d) Write-off
Answer: a) Amortization
What is the purpose of the “going concern” concept in accounting?
a) To value assets at their current market price
b) To assume a company will continue to operate indefinitely
c) To record revenues only when they are realized
d) To ensure compliance with tax regulations
Answer: b) To assume a company will continue to operate indefinitely
What is the purpose of the Financial Accounting Standards Board (FASB)?
a) To establish and improve financial accounting and reporting standards
b) To regulate tax laws for corporations
c) To oversee internal audit functions of companies
d) To manage stock exchanges
Answer: a) To establish and improve financial accounting and reporting standards
Which financial statement showcases a company’s revenues, expenses, gains, and losses over a specific period?
a) Balance sheet
b) Income statement
c) Statement of retained earnings
d) Cash flow statement
Answer: b) Income statement
PPSC 60 Jobs Deputy Accountant in Finance Department Written Test MCQs Syllabus Paper PDF Apply Online Now