PPSC 60 Jobs Deputy Accountant in Finance Department Written Test MCQs Syllabus Paper PDF Apply Online Now

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