FPSC national savings officer (BS-17) solved past papers questions with answers and solutions. The national savings officer test contains 100 MCQs from: English grammar and vocabulary, functions of national savings organisation, basic accounting, basic auditing, basic public finance, basic arithmetic, and basic I.T. knowledge. Following are solved questions (MCQs) from past FPSC national savings officer test papers.
Q. According to which concept business is treated as a unit apart from owner:
(a) Entity concept
(b) Divider concept
(c) Landlord concept
(d) Dual concept
Answer: (a) Entity concept
Q. Government taxing and spending policy is called:
(a) Fiscal policy
(b) Budget
(c) Monetary policy
(d) Finance policy
Answer: (a) Fiscal policy
Q. In Pakistan Sales Tax is a tax levied by:
(a) Prime Minister
(b) National Assembly
(c) Federal government
(d) President
Answer: (c) Federal government
Q. Inspection report supports entries in:
(a) Sales return book and sales book
(b) Sales books and purchase return book
(c) Purchase book and sales return book
(d) none of these
Answer: (c) Purchase book and sales return book
Q. The amount of time that is taken by a device to begin reading data is called:
(a) seek time
(b) read time
(c) access time
(d) control time
Answer: (c) access time
Q. The outcome of an audit is a/an :
(a) annual certificate
(b) report
(c) income and expenses
(d) profit or loss
Answer: (b) report
Q. An auditor is liable for his annual audit of accounts to:
(a) Creditors
(b) Bankers
(c) Owners
(d) Accountant
Answer: (c) Owners
Q. Formula to calculate prime cost is:
(a) Cost of raw material + direct labour
(b) Manufacturing cost + cost of goods sold
(c) Direct material + factory overhead
(d) None of above
Answer: (a) Cost of raw material + direct labour
Q. Under declining balance method deprecation is calculated on:
(a) Market value
(b) Book value
(c) Salvage value
(d) Depreciable cost
Answer: (b) Book value
Q. Which of the following is not recorded in the books of accounts?
(a) Sales tax
(b) Purchase discount
(c) Sales discount
(d) All of these
Answer: (a) Sales tax
Q. Which type of assets are not recorded in the books of accounts?
(a) Tangible assets
(b) Intangible assets
(c) Fixed assets
(d) None of these
Answer: (b) Intangible assets
Q. Deferred cost is a/an:
(a) Liability
(b) Expense
(c) Asset
(d) None of above
Answer: (c) Asset
Q. Which of the following assets is least likely to be subjected to lien?
(a) plant and machinery
(b) leasehold property
(c) freehold land
(d) none of these
Answer: (b) leasehold property
Q. An auditor is most likely to examine the related party transaction very carefully while vouching:
(a) credit purchase
(b) credit sale
(c) purchase return
(d) sale return
Answer: (a) credit purchase
Q. Subscription received in advance during the accounting year is:
(a) A liability
(b) An asset
(c) An expense
(d) An income
Answer: (a) A liability
Q. All fixed assets depreciated except:
(a) Furniture
(b) Land
(c) Building
(d) Machine
Answer: (b) Land
Q. What affects audit Effectiveness?
(a) Risk of incorrect rejection
(b) Risk of incorrect acceptance
(c) Risk of over reliance
(d) Both B and C
Answer: (d) Both b and c
Q. The ability of a business to pay its debt is called:
(a) Solvency
(b) Consolidation
(c) Liquidity
(d) None of these
Answer: (a) Solvency
Q. Difference between the sum of two sides of an Account is called?
(a) Trial Balance
(b) Balance
(c) Profit
(d) None of these
Answer: (b) Balance
Q. Existence of centre state economic inequalities is known as:
(a) Horizontal Imbalance
(b) Vertical Imbalance
(c) Parallel Imbalance
(d) None of these
Answer: (b) Vertical Imbalance
Q. which of the following is not a Commodity Tax?
(a) Custom duty
(b) Excise duty
(c) Corporation tax
(d) None of these
Answer: (c) Corporation tax
Q. What standards from the following 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
Answer: (a) International Financial Reporting Standards
Q. The cost of assets after the expiry of its useful life is called:
(a) Written down value
(b) Residual value
(c) Market value
(d) None of these
Answer: (b) Residual value
Q. The financial statements of limited companies in Pakistan are prepared in accordance with:
(a) Company Ordinance 1984
(b) IAS adopted in Pakistan
(c) Company law
(d) Both A and B
Answer: (d) Both A and B
Q. Straight line method is also known as:
(a) Production Method
(b) Fixed Instalment Method
(c) Year’s Digit Method
(d) Reducing Balance Method
Answer: (b) Fixed Instalment Method
Q. Current assets are compared with ______ in current ratio.
(a) Fixed assets
(b) Current liabilities
(c) current profit
(d) None of these
Answer: (b) Current liabilities
Q. Advance payments are recognised as:
(A) Payable
(B) Receivable
(C) Bad debt
(D) None of these
Answer: (B) Receivable
Q.Difference between the sum of two sides an Account is called?
(a) Trial Balance
(b) Balance
(c) Profit
(d) None of these
Answer: (b) Balance
Q. 1, 2, 5, 14, __?
(a) 38
(b) 39
(c) 40
(d) 41
Answer: (D) 41
Solution:
Q. If 75 percent of a number is “y”. And, 80 percent of “y” is 60, then what is the number?
(a) 100
(b) 110
(c) 120
(d) 130
Answer: (A) 100
Solution:
Q. Fifth Generation computers are based on:
(a) Artificial Intelligence
(b) Programming Intelligence
(c) VLSI
(d) Computer Knowledge
Answer: (a) Artificial Intelligence
Q. By default, how many sheets are there in MS Excel?
(a) 2
(b) 3
(c) 4
(d) 5
Answer: (b) 3
Q. In MS Word, which short key is used to activate Undo command?
(a) Ctrl+A
(b) Ctrl+N
(c) Ctrl+X
(d) Ctrl+Z
Answer: (d) Ctrl+Z
Q. Audit can be conduct by:
(a) Internally by employee
(b) Externally by certified public accountant
(c) Both A and B
(d) None of these
Answer: (C) Both A and B
Q. The _____ certify or guarantee that the financial statements are correct.
(a) management
(b) board of governors
(c) auditor
(d) auditor does not
Answer: (d) auditor does not
Q. Current audit is also called?
(a) Continuous Audit
(b) Internal Audit
(c) External Audit
(d) All of above
Answer: (a) Continuous Audit
Q. As per AAS4 if auditor detects an error then?
(a)The auditor must ensure financial statements are adjusted for detected errors.
(b) He must communicate it to the management of organisation if it is material.
(c) He should not inform the management
(d) Both A and B
Answer: (d) Both A and B
Q. 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
Answer: (a) Cost of an asset – Residual value
Q. The ability to convert assets into cash is called:
(a) Liquidity
(b) Solvency
(c) Profitability
(d) All of these
Answer: (a) Liquidity
Q. Financial planning starts with the preparation of:
(a) Cash budget
(b) Balance sheet
(c) Master budget
(d) None of these
Answer: (d) None of these
Q. Which from the following is NOT a non-current asset?
(a) Capital
(b) Property
(c) Patent rights
(d) Inventory
Answer: (d) Inventory
Q. Which number system is usually followed in a typical 32-bit computer?
(a) Binary
(b) Decimal
(c) Hexadecimal
(d) Octal
Answer: (a) Binary
Q. Unrecorded and unpaid expenses are known as:
(a) Accrued expense
(b) Expired expense
(c) Prepaid expense
(d) None of these
Answer: (a) Accrued expense
Q. ________ is known as the book of original entry in accounting.
(a) Worksheet
(b) Ledger
(c) Journal
(d) None of these
Answer: (c) Journal
Q. As per AAS4 if auditor detects an error then?
(A)The auditor must ensure financial statements are adjusted for detected errors.
(B) He must communicate it to the management of organisation if it is material.
(C) He should not inform the management
(D) Both A and B
Answer: (D) Both A and B
Q. Incidence of tax means:
(a) Actual tax burden
(b) Expected tax burden
(c) Indirect money burden
(d) Direct money burden
Answer: (b) Expected tax burden
Q. Which of the following accounting equation is correct?
(a) Assets + Capital = Liabilities
(b) Liabilities – Capital = Assets
(c) Capital = Assets + Liabilities
(d) Assets = Liabilities + Capital
Answer: (d) Assets = Liabilities + Capital
Q. 17% of 300 is:
(a) 17
(b) 34
(c) 45
(d) 51
Answer: (d) 51
Q. The ratio of 50 paisa to 2 rupees is:
(a) 1 : 2
(b) 1 : 4
(c) 2 : 5
(d) 4 : 1
Answer: (b) 1 : 4
Q. Pakistan is country __________ exports mango all over the world.
(a) which
(b) who
(c) whom
(d) that
Answer: (c) whom
Q. She gave Ali a mango. (Change into Passive)
(a) A mango has given to Ali by her.
(b) A mango was given to Ali by her.
(c) A mango given to Ali by her.
(d) A mango was given by her to Ali.
Answer: (b) A mango was given to Ali by her.
Q. “General Theory of Employment Interest and Money” was put forward by:
(a) David Ricardo
(b) Adam Smith
(c) John Maynard Keynes
(d) None of these
Answer: (c) John Maynard Keynes
Q. The interest on 4500 for 3 years at 7% per year is:
(a) 315
(b) 445
(c) 945
(d) 1015
Answer: (c) 945
Q. When government expenditures exceeds its total tax revenue, it is called:
(a) Budget deficit
(b) Balanced budget
(c) Surplus Budget
(d) None of these
Answer: (a) Budget deficit
Q. Scope of public finance includes:
(a) Public expenditures
(b) Public revenue
(c) Public debt
(d) All of above
Answer: (d) All of above
Q. Current audit is also called?
(A) Continuous Audit
(B) Internal Audit
(C) External Audit
(D) All of above
Answer: (A) Continuous Audit
Q. Closing entries are made to close:
(a) Liabilities account
(b) Capital account
(c) Expenses and Revenues account
(d) None of these
Answer: (c) Expenses and Revenues account