PAST PAPER Assistant Accounts Officer PPSC [SOLVED]

By: Prof. Dr. Fazal Rehman | Last updated: October 31, 2024

1. What is the primary purpose of financial statements? A) To analyze market trends B) To provide information for decision-making C) To calculate tax liabilities D) To report daily transactions Answer: B) To provide information for decision-making 2. Which of the following is not a type of financial statement? A) Balance Sheet B) Income Statement C) Cash Flow Statement D) Marketing Analysis Answer: D) Marketing Analysis 3. The formula for calculating Net Present Value (NPV) is: A) Cash inflow – Cash outflow B) Cash inflow / (1 + rate)^n C) Total Revenue – Total Costs D) Cash inflow – (Cash outflow / (1 + rate)^n) Answer: D) Cash inflow – (Cash outflow / (1 + rate)^n) 4. Which ratio is used to measure a company’s profitability? A) Current Ratio B) Quick Ratio C) Return on Assets (ROA) D) Debt to Equity Ratio Answer: C) Return on Assets (ROA) 5. The Capital Asset Pricing Model (CAPM) is used to determine: A) The future value of an investment B) The expected return on an asset based on its risk C) The cost of equity D) The market value of a company Answer: B) The expected return on an asset based on its risk 6. Which of the following best describes liquidity? A) The ability to pay long-term debts B) The ability to convert assets into cash quickly C) The profitability of a business D) The level of debt a company has Answer: B) The ability to convert assets into cash quickly 7. A bond’s coupon rate refers to: A) The interest paid to bondholders B) The total value of the bond C) The current market price of the bond D) The maturity date of the bond Answer: A) The interest paid to bondholders 8. Which of the following is considered a non-current asset? A) Cash B) Inventory C) Accounts Receivable D) Property, Plant, and Equipment Answer: D) Property, Plant, and Equipment 9. The market equilibrium price occurs when: A) Demand exceeds supply B) Supply exceeds demand C) Quantity demanded equals quantity supplied D) Prices are fixed Answer: C) Quantity demanded equals quantity supplied 10. Which financial metric indicates a company’s ability to meet short-term obligations? A) Return on Equity B) Current Ratio C) Gross Margin D) Debt Ratio Answer: B) Current Ratio 11. The main function of the stock market is to: A) Determine interest rates B) Facilitate the buying and selling of securities C) Regulate banks D) Provide loans Answer: B) Facilitate the buying and selling of securities 12. Which type of business organization limits personal liability for its owners? A) Sole Proprietorship B) Partnership C) Corporation D) Limited Liability Company (LLC) Answer: D) Limited Liability Company (LLC) 13. The term “dividend” refers to: A) A payment made to shareholders B) A measure of profitability C) The total assets of a company D) The cost of borrowing Answer: A) A payment made to shareholders 14. Which of the following is an example of a fixed cost? A) Direct materials B) Sales commissions C) Rent D) Utilities Answer: C) Rent 15. What does the acronym ‘FIFO’ stand for in inventory management? A) First In, First Out B) Fixed In, Fixed Out C) Financial In, Financial Out D) First In, Final Out Answer: A) First In, First Out 16. Which principle states that expenses should be matched with revenues? A) Revenue Recognition Principle B) Matching Principle C) Cost Principle D) Conservatism Principle Answer: B) Matching Principle 17. What is the primary goal of corporate finance? A) Increasing market share B) Maximizing shareholder value C) Minimizing costs D) Enhancing customer satisfaction Answer: B) Maximizing shareholder value 18. A budget variance occurs when: A) Actual results differ from budgeted amounts B) A new budget is created C) Expenses exceed revenues D) All budget items are achieved Answer: A) Actual results differ from budgeted amounts 19. In the context of investments, diversification refers to: A) Investing in a single asset B) Spreading investments across various assets C) Avoiding risky investments D) Selling off all investments Answer: B) Spreading investments across various assets 20. Which financial metric helps in evaluating a company’s profitability in relation to its equity? A) Return on Investment (ROI) B) Return on Equity (ROE) C) Gross Profit Margin D) Operating Margin Answer: B) Return on Equity (ROE)

General Ability Questions (20%)

21. Which is the largest desert in the world? A) Gobi B) Sahara C) Arabian D) Kalahari Answer: B) Sahara 22. What is the capital of Pakistan? A) Karachi B) Lahore C) Islamabad D) Peshawar Answer: C) Islamabad 23. Which of the following is not a programming language? A) Python B) HTML C) Java D) SQL Answer: B) HTML 24. The boiling point of water is: A) 0°C B) 50°C C) 100°C D) 150°C Answer: C) 100°C 25. What is the sum of angles in a triangle? A) 90 degrees B) 180 degrees C) 270 degrees D) 360 degrees Answer: B) 180 degrees 26. Which planet is known as the Red Planet? A) Venus B) Mars C) Jupiter D) Saturn Answer: B) Mars 27. Which is the hardest natural substance on Earth? A) Gold B) Iron C) Diamond D) Quartz Answer: C) Diamond 28. Which instrument is used to measure atmospheric pressure? A) Barometer B) Thermometer C) Anemometer D) Hydrometer Answer: A) Barometer 29. In which year did Pakistan become independent? A) 1945 B) 1947 C) 1950 D) 1952 Answer: B) 1947 30. Which of the following is a mammal? A) Crocodile B) Sparrow C) Whale D) Lizard Answer: C) Whale 31. Who wrote the famous play ‘Romeo and Juliet’? A) Mark Twain B) Charles Dickens C) William Shakespeare D) Leo Tolstoy Answer: C) William Shakespeare 32. What is the currency of Japan? A) Dollar B) Yen C) Euro D) Won Answer: B) Yen 33. The Great Wall of China was primarily built for: A) Trade B) Tourism C) Defense D) Transportation Answer: C) Defense 34. Which gas do plants absorb from the atmosphere during photosynthesis? A) Oxygen B) Nitrogen C) Carbon Dioxide D) Hydrogen Answer: C) Carbon Dioxide 35. The human body has how many bones? A) 206 B) 205 C) 201 D) 210 Answer: A) 206 36. Which element has the chemical symbol ‘O’? A) Gold B) Oxygen C) Osmium D) Oganesson Answer: B) Oxygen 37. Which continent is known as the “Dark Continent”? A) Asia B) Africa C) Australia D) South America Answer: B) Africa 38. In which part of the brain is the control center for coordination located? A) Cerebrum B) Cerebellum C) Medulla D) Hypothalamus Answer: B) Cerebellum 39. Which country is known as the Land of the Rising Sun? A) China B) Japan C) Korea D) Thailand Answer: B) Japan 40. The speed of light is approximately: A) 300,000 km/s B) 150,000 km/s C) 450,000 km/s D) 600,000 km/s Answer: A) 300,000 km/s 41. What is the freezing point of water? A) 0°F B) 0°C C) 32°F D) Both B and C Answer: D) Both B and C 42. Which of the following is a primary color? A) Green B) Purple C) Yellow D) Orange Answer: C) Yellow 43. The main ingredient in guacamole is: A) Tomato B) Avocado C) Onion D) Pepper Answer: B) Avocado 44. Which organ is primarily responsible for detoxifying chemicals in the body? A) Kidney B) Heart C) Liver D) Lung Answer: C) Liver 45. Which gas is essential for human respiration? A) Carbon Dioxide B) Nitrogen C) Oxygen D) Methane Answer: C) Oxygen 46. What is the capital city of France? A) London B) Madrid C) Paris D) Rome Answer: C) Paris 47. The smallest planet in our solar system is: A) Venus B) Mars C) Mercury D) Earth Answer: C) Mercury 48. Which organelle is known as the powerhouse of the cell? A) Nucleus B) Ribosome C) Mitochondria D) Endoplasmic Reticulum Answer: C) Mitochondria 49. Which famous scientist developed the theory of general relativity? A) Isaac Newton B) Albert Einstein C) Galileo Galilei D) Nikola Tesla Answer: B) Albert Einstein 50. What is the chemical formula for water? A) CO2 B) H2O C) O2 D) NaCl Answer: B) H2O

Continuation of Qualification-Related Questions (51-100)

51. Which of the following is not a form of business financing? A) Debt Financing B) Equity Financing C) Retained Earnings D) Advertising Answer: D) Advertising 52. Which investment strategy involves buying low and selling high? A) Hedging B) Arbitrage C) Value Investing D) Growth Investing Answer: C) Value Investing 53. Which financial document summarizes a company’s revenues and expenses? A) Cash Flow Statement B) Balance Sheet C) Income Statement D) Shareholder Equity Statement Answer: C) Income Statement 54. Which term describes a situation where total revenues equal total costs? A) Profit B) Loss C) Break-even D) Surplus Answer: C) Break-even 55. The term “leverage” refers to: A) The ratio of debt to equity B) The use of borrowed funds to increase returns C) The process of reducing costs D) The level of investment in securities Answer: B) The use of borrowed funds to increase returns 56. Which of the following is a benefit of diversification? A) Increased risk B) Reduced volatility C) Higher returns D) Higher costs Answer: B) Reduced volatility 57. A company’s ability to pay its long-term debts is assessed through which ratio? A) Current Ratio B) Quick Ratio C) Debt Ratio D) Asset Turnover Ratio Answer: C) Debt Ratio 58. In accounting, “accrual” refers to: A) Recognizing revenue when cash is received B) Recognizing expenses when paid C) Recognizing revenue and expenses when incurred D) None of the above Answer: C) Recognizing revenue and expenses when incurred 59. Which investment product typically offers fixed interest payments? A) Stocks B) Mutual Funds C) Bonds D) Real Estate Answer: C) Bonds 60. A SWOT analysis includes: A) Strengths, Weaknesses, Opportunities, Threats B) Strengths, Weaknesses, Objectives, Tactics C) Strategies, Wages, Outcomes, Trends D) None of the above Answer: A) Strengths, Weaknesses, Opportunities, Threats 61. What does ‘ROI’ stand for in business? A) Return on Investment B) Rate of Interest C) Revenue of Income D) Return of Investment Answer: A) Return on Investment 62. Which of the following represents a fixed asset? A) Cash B) Inventory C) Building D) Accounts Receivable Answer: C) Building 63. Which financial metric is used to assess a company’s operational efficiency? A) Gross Profit Margin B) Net Profit Margin C) Operating Margin D) Return on Assets Answer: C) Operating Margin 64. Which financial document is used to report a company’s cash inflows and outflows? A) Income Statement B) Cash Flow Statement C) Balance Sheet D) Shareholders’ Equity Statement Answer: B) Cash Flow Statement 65. Which of the following is an example of a variable cost? A) Rent B) Salaries C) Raw Materials D) Insurance Answer: C) Raw Materials 66. The primary objective of marketing is to: A) Increase production B) Maximize profit C) Satisfy customer needs D) Reduce costs Answer: C) Satisfy customer needs 67. Which type of market structure is characterized by a single seller? A) Perfect Competition B) Monopoly C) Oligopoly D) Monopolistic Competition Answer: B) Monopoly 68. Which of the following is not a source of external financing? A) Bank Loans B) Issuing Stock C) Retained Earnings D) Bonds Answer: C) Retained Earnings 69. What is the main purpose of market research? A) To analyze financial statements B) To understand consumer behavior C) To manage employee relations D) To create products Answer: B) To understand consumer behavior 70. Which economic term describes a prolonged period of negative growth? A) Recession B) Expansion C) Boom D) Stagnation Answer: A) Recession 71. In financial analysis, liquidity ratios measure: A) Profitability B) Solvency C) Cash flow D) Ability to meet short-term obligations Answer: D) Ability to meet short-term obligations 72. Which of the following is a characteristic of an oligopoly? A) Many sellers and buyers B) Homogeneous products C) High barriers to entry D) Perfect information Answer: C) High barriers to entry 73. What is the primary purpose of an income statement? A) To show cash inflows and outflows B) To report the company’s financial position at a point in time C) To summarize revenues and expenses over a period D) To report retained earnings Answer: C) To summarize revenues and expenses over a period 74. A company’s market share is defined as: A) The percentage of total sales in the market B) The number of customers C) The total profit earned D) The total number of competitors Answer: A) The percentage of total sales in the market 75. Which of the following is a type of equity financing? A) Bank Loan B) Issuing Bonds C) Issuing Common Stock D) Line of Credit Answer: C) Issuing Common Stock 76. Which of the following is a benefit of using credit? A) Higher costs B) Increased debt C) Improved cash flow D) Reduced purchasing power Answer: C) Improved cash flow 77. The term “bull market” refers to: A) A declining market B) A rising market C) A stable market D) A volatile market Answer: B) A rising market 78. Which of the following is a characteristic of a sole proprietorship? A) Limited liability B) Shared ownership C) Single ownership D) Separate legal entity Answer: C) Single ownership 79. In project management, the critical path method is used to: A) Determine project budget B) Identify the shortest path to complete a project C) Allocate resources D) Set project milestones Answer: B) Identify the shortest path to complete a project 80. Which of the following is a direct cost? A) Office Rent B) Utilities C) Raw Materials D) Marketing Expenses Answer: C) Raw Materials 81. Which financial ratio measures a company’s profitability? A) Current Ratio B) Debt-to-Equity Ratio C) Return on Equity D) Quick Ratio Answer: C) Return on Equity 82. Which of the following is a type of intangible asset? A) Cash B) Equipment C) Brand Recognition D) Inventory Answer: C) Brand Recognition 83. Which term describes the total value of a company’s outstanding shares? A) Market Capitalization B) Net Worth C) Equity Value D) Book Value Answer: A) Market Capitalization 84. Which financial statement shows a company’s assets, liabilities, and equity? A) Income Statement B) Cash Flow Statement C) Balance Sheet D) Statement of Changes in Equity Answer: C) Balance Sheet 85. In economics, a “substitute good” is: A) A good that is used together with another B) A good that can replace another C) A luxury item D) An essential item Answer: B) A good that can replace another 86. Which type of analysis assesses the costs and benefits of a project? A) Financial Analysis B) Risk Analysis C) Cost-Benefit Analysis D) Market Analysis Answer: C) Cost-Benefit Analysis 87. What does the term ‘fiscal policy’ refer to? A) Government spending and taxation decisions B) Monetary supply adjustments C) Regulatory practices D) Trade agreements Answer: A) Government spending and taxation decisions 88. Which of the following is a leading economic indicator? A) Employment Rates B) GDP Growth C) Stock Market Performance D) Inflation Rate Answer: C) Stock Market Performance 89. The main function of the Federal Reserve is to: A) Regulate stock markets B) Control inflation C) Provide loans to businesses D) Manage fiscal policy Answer: B) Control inflation 90. Which of the following factors is typically considered in a credit risk assessment? A) Payment History B) Social Media Activity C) Personal Interests D) Physical Appearance Answer: A) Payment History 91. Which of the following is a characteristic of a corporate bond? A) No maturity date B) Fixed interest payments C) No default risk D) Variable interest payments Answer: B) Fixed interest payments 92. Which term describes the risk of losing all or part of an investment? A) Systematic Risk B) Unsystematic Risk C) Market Risk D) Credit Risk Answer: B) Unsystematic Risk 93. Which of the following is a non-renewable resource? A) Solar Energy B) Wind Energy C) Coal D) Hydropower Answer: C) Coal 94. Which term refers to the value of a company’s liabilities compared to its assets? A) Equity Ratio B) Debt Ratio C) Solvency Ratio D) Profitability Ratio Answer: B) Debt Ratio 95. In which market do securities are bought and sold after they are issued? A) Primary Market B) Secondary Market C) Tertiary Market D) Capital Market Answer: B) Secondary Market 96. Which of the following is a type of direct financing? A) Bank Loans B) Issuing Stocks C) Issuing Bonds D) All of the above Answer: D) All of the above 97. Which of the following is an example of a fixed cost? A) Direct Materials B) Direct Labor C) Rent D) Commissions Answer: C) Rent 98. The primary goal of a non-profit organization is to: A) Maximize profits B) Provide services to the community C) Increase shareholder value D) Reduce costs Answer: B) Provide services to the community 99. Which of the following financial statements is prepared at a specific point in time? A) Income Statement B) Cash Flow Statement C) Balance Sheet D) Statement of Changes in Equity Answer: C) Balance Sheet 100. Which term describes the potential financial gain from an investment? A) Profit B) Revenue C) Return D) Income Answer: C) Return
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