FPSC Senior Audior Exam Questions and Answers - 2025

English: 20 Questions

1. __________ the bad weather, the outdoor party was rescheduled.

  • (A) Because of
  • (B) In order to
  • (C) Despite
  • (D) None of these

2. __________ loosing the first match, our team has won the world cup.

  • (A) Because of
  • (B) In order to
  • (C) Despite
  • (D) None of these

3. You are wearing an army's uniform, but the __________ is missing.

  • (A) Epic
  • (B) Epoch
  • (C) Epithet
  • (D) None of these

4. University professors visit the website wwwsheirorg and ___________ the data.

  • (A) Inform
  • (B) Appraise
  • (C) Apprise
  • (D) None of these

5. I am afraid __________ cats.

  • (A) To
  • (B) From
  • (C) Of
  • (D) None of these

6. We did not have __________ questions for the lecturer.

  • (A) Any
  • (B) Some
  • (C) None of these

7. Although its publicity has been ___, the film itself is intelligent, well-acted, handsomely produced and altogether ___

  • (A) Tasteless … respectable
  • (B) Extensive … moderate
  • (C) Sophisticated … moderate
  • (D) None of these

8. Why are you still sleeping? you 'll be late. _ of bed now.

  • (A) Get up
  • (B) Get out
  • (C) Out
  • (D) None of these

9. If I had money, I __________ it now.

  • (A) will purchase
  • (B) Would purchase
  • (C) Would have purchased
  • (D) None of these

10. The man __________ you met is an anchorperson.

  • (A) Who
  • (B) Whose
  • (C) Whom
  • (D) None of these

11. The woman __________ is standing by the table works in electronic media.

  • (A) Who
  • (B) Whose
  • (C) Whom
  • (D) None of these

12. If humans were totally deprived of sleep, they ________ hallucinations, anxiety, coma, and eventually, death.

  • (A) Would experience
  • (B) Experience
  • (C) Would have experienced
  • (D) None of these

13. He is looking for accommodation __________ in flat or shared house.

  • (A) Both
  • (B) Either
  • (C) Until
  • (D) None of these

14. You can go neither by train __________ by bus.

  • (A) No
  • (B) Nor
  • (C) Or
  • (D) None of these

15. Before designing a public park, the architect must __________ the public.

  • (A) Consider
  • (B) Considers
  • (C) Recognize
  • (D) None of these

16. When she was younger, she __________ five kilometers a day.

  • (A) Walked
  • (B) Had walked
  • (C) Has been walking
  • (D) None of these

17. To check for acidity, one had better ________ litmus paper.

  • (A) Use
  • (B) Using
  • (C) To use
  • (D) None of these

18. The house is large __________ is quite old-fashioned.

  • (A) And
  • (B) Or
  • (C) But
  • (D) None of these

19. We need to find __________ method to solve this problem.

  • (A) Other
  • (B) The other
  • (C) Another
  • (D) None of these

20. The students in our school are __________ in other schools.

  • (A) Smarter
  • (B) Smarter than
  • (C) Smarter than those
  • (D) None of these.

Professional: 80 Questions

21. __________ is a systematic examination of the books and records or a business.

  • (A) Auditing
  • (B) Vouching
  • (C) Verification
  • (D) Checking

22. Management audit otherwise called as _______

  • (A) Final audit
  • (B) Efficiency audit
  • (C) Cost audit
  • (D) Cash audit

23. For which of the following organization Audit is optional

  • (A) Organization
  • (B) Joint stock company
  • (C) Partnership concern
  • (D) None of these

24. Auditor is ________

  • (A) A member of the company
  • (B) The agent of the of the company
  • (C) The agent of the central government
  • (D) An assistant to accountant

25. Prospectus is a document _________

  • (A) Containing the rules and regulations of the company
  • (B) Containing details about the manufacturing process of the company
  • (C) Containing details about the share capital of the company
  • (D) Containing the information of the sales

26. A sale of Rs. 50000 to Mr. A was entered as a sale to Mr. B. This is an example of

  • (A) Error of omission
  • (B) Error of commission
  • (C) Compensating error
  • (D) Error of principle

27. Preliminary expenses are the best example for _________

  • (A) Fictitious asset
  • (B) Intangible asset
  • (C) Wasting asset
  • (D) Floating asset

28. Capital reserves are created out of profits of __________

  • (A) A revenue nature
  • (B) A capital nature
  • (C) A secret reserve
  • (D) Contingency reserve

29. The main objects of investigation is _________

  • (A) To discover errors and frauds
  • (B) To prevent errors and frauds
  • (C) To verify statements
  • (D) All the above

30. The cost of the asset after the expiry of its useful life is called___________

  • (A) Written down value
  • (B) Residual value
  • (C) Expired value
  • (D) None of the given options

31. Excess of debit over credit is called:

  • (A) Opening balance
  • (B) Closing balance
  • (D) Debit balance
  • (D) Credit balance

32. Manufacturing overhead cost would include

  • (A) A marketing cost related to selling the product
  • (B) The salary of production line supervisor
  • (C) The chief executive officer salary
  • (D) Research and development cost of a new product

33. The distinction between revenue account and capital account is necessary for the preparation of

  • (A) Final accounts
  • (B) Receipt and payment account
  • (C) Cash flow statement
  • (D) Funds flow statements

34. Depreciation of machinery will be shown in the profit & loss account under the head of

  • (A) Selling expense
  • (B) Administrative Expenses
  • (C) Marketing expense
  • (D) Financial expense

35. The accounting system, in which accounting entries are made on the basis of amount having become due for payment or receipt is known as:

  • (A) Cash system of accounting
  • (B) Current accounting period
  • (C) Accrual system of accounting
  • (D) None of the given options

36. Assets which have no physical existence and which cannot be seen, touched or felt are called

  • (A) Current assets
  • (B) Tangible assets
  • (C) Fictitious assets
  • (D) Intangible assets

37. Overhead cost is the total of ____________

  • (A) All indirect costs
  • (B) All direct costs
  • (C) Indirect and direct costs
  • (D) All specific costs

38. Cost of sales plus profit is __________

  • (A) Selling price
  • (B) Value of finished product
  • (C) Value of goods produced
  • (D) Value of stocks

39. Depreciation of plant and machinery is a part of ___________

  • (A) Factory overhead
  • (B) Selling overhead
  • (C) Distribution overhead
  • (D) Administration overhead

40. The ratios which reflect managerial efficiency in handling the assets is__________

  • (A) Turnover ratios
  • (B) Profitability ratios
  • (C) Short term solvency ratio
  • (D) Long term solvency ratio

41. Return on equity is also called

  • (A) Return on investment
  • (B) Gross profit ratio
  • (C) Return on shareholders’ fund
  • (D) Return on net worth

42. ______ involves the sale of used securities from one investor to another

  • (A) Primary market
  • (B) Secondary market
  • (C) Tertiary market
  • (D) None of these

43. The process of planning and managing a firm's long-term investments is called:

  • (A) Planning Process
  • (B) Capital Structure
  • (C) Capital Budgeting
  • (D) Managing Process

44. An equal increase in both current assets and current liabilities would

  • (A) No affect on current ratio
  • (B) Increase current ratio
  • (C) Decreases current ratio
  • (D) None of these

45. _________are short-term, temporary investments that can be readily converted into cash.

  • (A) Marketable securities
  • (B) Cash equivalents
  • (C) Treasury bills
  • (D) All of the given options

46. When bank statement shows a debit balance, it means?

  • (A) Overdraft balance as per cash book
  • (B) Unfavorable balance as per cash book
  • (C) Unfavorable balance as per bank book
  • (D) None of the above

47. The accounting system, in which accounting entries are made on the basis of amount having become due for payment or receipt, is known as?

  • (A) Cash system of accounting
  • (B) Current accounting period
  • (C) Accrual system of accounting
  • (D) None of the given options

48. Test of control is not associated with

  • (A) Existence of control
  • (B) Effectiveness of control
  • (C) Continuous of control
  • (D) Designing of control

49. The comparison of net profit with the sales of the same year is

  • (A) Vertical comparison
  • (B) Horizontal comparison
  • (C) None of these

50. The term organization means

  • (A) Management of the business
  • (B) Accomplishment of goals or objectives by all means
  • (C) The process of assigning duties to individuals to achieve goals or objectives

51. When shares are forfeited, the share capital account is debited with the

  • (A) Nominal value of share
  • (B) Paid up value of share
  • (C) Called up value of share
  • (D) None of these

52. Two companies X co and y co go into liquidation and a new co z is formed then it is known as--------------

  • (A) Absorption
  • (B) External reconstruction
  • (C) Amalgamation
  • (D) None of these

53. Financial accounting reports are prepared primarily:

  • (A) To value the property of the company
  • (B) To show managers the results of their departments
  • (C) To help people make decisions about resource
  • allocation
  • (D) To show the value of shares in the company

54. Stock in trade is valued

  • (A) At cost price price
  • (B) At market price
  • (C) At cost or market whichever is less
  • (D) At cost less market price

55. Share may be issued

  • (A) At par
  • (B) At discount
  • (C) At premium
  • (D) All of these

56. Current ratio is

  • (A) Short term solvency ratio
  • (B) Long term solvency ratio
  • (C) Profitability ratio
  • (D) Turnover ratio

57. The ratio which shows the proportion of profits retained in the business out of the current year's profits is__________

  • (A) Retained earnings ratio
  • (B) Pay out ratio
  • (C) Earnings per share
  • (D) Price earnings ratio

58. Trading & Profit & loss account and balance sheet is prepared from

  • (A) Ledger balance
  • (B) Ledger balances, cash and bank balances
  • (C) Cash book and bank book
  • (D) Trial balance

59. The amount of resources supplied by the owner in business is called:

  • (A) Investments
  • (B) Assets
  • (C) Capital
  • (D) Reserves

60. The process of recording the economic effects of business transactions in a book of

  • (A) original entry is known as which of the following?
  • (B) Double entry system
  • (C) Journalizing
  • (D) Debit
  • (E) Posting

61. Partners in Pakistan can today be fixed at the following numbers

  • (A) 20
  • (B) 50
  • (C) 75
  • (D) None of these

62. Economic resources of a business that are expected to be of benefit in the future are referred to as

  • (A) Liabilities
  • (B) Owner’s equity
  • (C) Withdrawals
  • (D) Assets

63. Any expenditure incurred to increase the profit earning capacity of the concern is a Revenue expenditure

  • (A) Capital expenditure
  • (B) Deferred revenue expenditure
  • (C) None of these

64. Which of the following instruments is NOT typically associated with spending?

  • (A) Cash
  • (B) Credit Card
  • (C) Debit Card
  • (D) Certificates of Deposits

65. Which of the following options indicate how quickly accounts receivables are converted into cash?

  • (A) Accounts receivable turnover
  • (B) Days to collect accounts receivable
  • (C) Working capital turnover
  • (D) Total assets turnover

66. Which of the following principle deals with the valuation and recording of asset at cost

  • (A) Entity principle
  • (B) Matching principle
  • (C) Cost principle
  • (D) Dollar currency principle

67. The main electronic component used in first generation computers was

  • (A) Transistors
  • (B) Vacuum Tubes and Valves
  • (C) Integrated Circuits
  • (D) None of above

68. Which of the following is the most powerful computers?

  • (A) Mainframe Computer
  • (B) Mini Computers
  • (C) Micro Computers
  • (D) Super Computers

69. Assembly language started to be used from

  • (A) First generation computers
  • (B) Second generation computers
  • (C) Third generation computers
  • (D) Fourth generation computers

70. The auditor is most likely to examine related party transactions very carefully while vouching

  • (A) Credit sales
  • (B) sales returns
  • (C) Credit purchases
  • (D) Cash purchases

71. A shareholder in a company

  • (A) Can be its debenture holder
  • (B) Cannot be its debenture holder
  • (C) Can be member of board of directors
  • (D) Can be liable to unlimited entry

72. Production function refers

  • (A) Cost to input
  • (B) Wages to profit
  • (C) Cost to output
  • (D) Input to output

73. The board of directors shall appoint first auditor of a company ___________

  • (A) within one month of completion of capital subscription state of the company
  • (B) within one month of the promotion of the company
  • (C) within one month of the commencement of the business of the company
  • (D) within one month of incorporation of the company

74. Real accounts are related with

  • (A) Assets
  • (B) Expenses and incomes
  • (C) Customers and creditors
  • (D) None of these

75. Which of the following is the acronym for GAAP?

  • (A) Generally Applied Accountability Principles
  • (B) General Accounting Assessment Principles
  • (C) Generally Accepted Accounting Principles
  • (D) General Accepted Assessment Principles

76. Which of the following is not among the five main kinds of current asset?

  • (A) Cash and equivalents
  • (B) Deferred income
  • (C) Accounts receivable
  • Prepaid expenses

77. The audit is not a necessary requirement for which of the following companies.

  • (A) Limited companies
  • (B) Corporation
  • (D) Sole proprietorship
  • (D) Partnerships

78. Which of the following feature is shown by the income statement for a merchandising company?

  • (A) Gross profit
  • (B) Cost of goods sold
  • (C) sales revenue section
  • (D) All of the given options

79. Which one of the following is temporary account?

  • (A) Cash
  • (B) Accounts receivables
  • (C) Insurance expense
  • (D) Accounts payable

80. An entry that affects more than oe accounts is known as

  • (A) Journal entry
  • (B) Composed entry (compound entry)
  • (C) Adjusting entry
  • (D) Reversing entry

81. A bank offers 20% compounded monthly. What would be the effective annual rates of return?

  • (A) 20.00%
  • (B) 20.50%
  • (C) 21.00%
  • (D) 21.99%

82. The discount account is a

  • (A) Personal account
  • (B) Real account
  • (C) Nominal account
  • (D) Asset account

83. Direct expenses are charged on

  • (A) Balance sheet
  • (B) Profit & loss account
  • (C) Trading account
  • (D) None of these

84. Heavy expenditures on advertisement of a new product is a

  • (A) Capital expenditure
  • (B) Revenue expenditure
  • (C) Deffered revenue expenditure
  • (D) None of these

85. Which one of these is considered as a non cash item?

  • (A) Inventory
  • (B) Accounts payable
  • (C) Accounts receivable
  • (D) Depreciation

86. Costing stock appearing in trial balance will be taken to

  • (A) Trading account only
  • (B) Balance sheet only
  • (C) Trading account and balance sheet
  • (D) Profit and loss account only

87. Dividends are usually paid on

  • (A) Authorized capital
  • (B) Issued capital
  • (C) Paid up capital
  • (D) None of these

88. The current account of a partner

  • (A) Always has a credit balance
  • (B) Always has a debit balance
  • (C) Always has no balance
  • (D) May have a debit balance ar credit balance

89. Wages are paid to a labur, who was engaged in production activities can be termed as

  • (A) Direct cost
  • (B) Indirect cost
  • (C) Sunk cost
  • (D) imputed cost

90. The ratios which reveal the final result of the managerial policies and performance is

  • (A) Turnover ratios
  • (B) Profitability ratios
  • (C) Short term solvency ratio
  • (D) Long term solvency ratio

91. Sales Rs. 25000 Variable cost Rs. 8000 Fixed cost Rs. 5000 Break even sales in value

  • (A) Rs. 7936
  • (B) Rs. 7353
  • (C) Rs. 8333
  • (D) Rs. 9090

92. Which of the following term refers to the use of debt financing?

  • (A) Operating Leverage
  • (B) Financial Leverage
  • (C) Manufacturing Leverage
  • (D) None of these

93. Which of the following statement shows assets, liabilities and net worth as on a specific date?

  • (A) Income Statement
  • (B) Balance Sheet
  • (C) Owner’s Equity Statement
  • (D) Cash Flow Statement

94. Which one of the following is not a form of business organization?

  • (A) Sole proprietorship
  • (B) Partnership
  • (C) Joint stock company
  • (D) Co-operative society

95. In which type of business, all owners share in gains ans losses and all have unlimited liabilities for all business debts?

  • (A) Sole proprietorship
  • (B) General partnership
  • (C) Limited partnership
  • (D) Corporation

96. A borrower is able to pay Rs. 40000 in 5 years. Given a discount rate of 12 percent. What amount of money the lender should lend?

  • (A) Rs. 14,186
  • (B) Rs. 18,256
  • (C) Rs. 22,697
  • (D) Rs. 28,253

97. Rule of 72 for finding the number of periods is fairly applicable to which of the following range of discount rates?

  • (A) 2% to 8%
  • (B) 4% to 25%
  • (C) 5% to 20%
  • (D) 10% to 50%

98. Which one of the following is the rate of return that firm’s creditors demand on new borrowing?

  • (A) Cost of debt
  • (B) Cost of preferred stock
  • (C) Cost of common stock
  • (D) Cost of retained earnings

99. The difference between an investments market value and its cost is called ----------- of the investment?

  • (A) Net present value
  • (B) Economic value
  • (C) Book value
  • (D) Future value

100. A model which makes an assumption about the futue growth of dividends is known as

  • (A) Dividend price model
  • (B) Dividend growth model
  • (C) Dividend policy model
  • (D) All of these