16.

Integrated risk management involves both:

1.
2.
3.
4.

A. Insurance and market risk

B. Insurance and operational risk
C. Insurance and financial risk
D. Insurance and interest rate risk

17. What is cash discount?

1.
2.
3.
4.

A. When payment is made in cash

B. When payment is made by cheque
C. When purchases are made in bulk
D. When payment is made before due date

18. Which of the following techniques used for evaluating capital projects is not based on
cash flows?

1.
2.
3.
4.
5.

A. Pay Back Method

B. Discounted Pay Back Method
C. Internal Rate of Return
D. Accounting Rate of Return
E. Net Present Value

1.

3.

1.
2.
3.
4.
5.

A.
B.
C.
D.
E.

1.

4.

1.
2.
3.
4.

A.
B.
C.
D.

ILLUSION: REALITY::
fancy: fact
sky: earth
ethereal: real
dream: work
water: ice
SNAKE: FANG::
vampire: teeth
rabbit: hutch
snail: antennae
action: fin

Choose the lettered word or phrase that is most nearly opposite in meaning to the word in
capital letters.

1.

5.

SIMULATED:

1.
2.
3.
4.

A. real
B. contrived
C. unassuming
D. false

Each question below consists of a related pair of words, followed by five lettered pairs of
words. Select the lettered pair that best expresses a relationship similar to that expressed in
the original pair.

1.

2.

1.
2.
3.
4.
5.

A.
B.
C.
D.
E.

1.

3.

1.
2.
3.
4.
5.

A.
B.
C.
D.
E.

ENZYME: CATALYST::
vaccine: allergy
bacterium: microbe
gland: muscle
vein: organ
neuron: corpuscle
HORNS: BULL::
mane: lion
wattles: turkey
antlers: stag
hoofs: horse
wings: eagle

Choose the lettered word or phrase that is most nearly opposite in meaning to the word in
capital letters.

1.

4.

TRANSIENT:

1.
2.
3.
4.

A.
B.
C.
D.

temporary
shining
dull
permanent

16. The first stage of the Marketing Research process is to:

1.
2.
3.
4.
5.

A. Select the sample

B. Determine the objectives
C. Collect data
D. Develop a questionnaire
E. Decide on the sources of data

17. The most basic concept underlying marketing is that of ________.

1.
2.
3.
4.
5.

A. selling and advertising

B. customer identification
C. retaining customers
D. human needs
E. fulfilling consumer wants

18. A Private Brand is another name for:

1.
2.
3.
4.

A. Manufacturer Brand
B. Generic Brand
C. Family Brand
D. Store Brand

. The goal/s of human resource management include/s:

1.
2.
3.
4.

A.
B.
C.
D.

Attracting an effective workforce

Developing an effective workforce
Maintaining an effective workforce
All of the above

17. Human Resource Hiring process comprises:

1.
2.
3.
4.
5.

A.
B.
C.
D.
E.

Recruitment, Selection and Socialization

Recruitment, Election and Specialization
Recruitment, Posting and Assigning job
Recruitment, Selection and Posting
None of the above

18. Managers who make the best use of scarce resources are:

1.
2.
3.
4.
5.

A.
B.
C.
D.
E.

effective
empowered
efficient
entitled
energized
AUDIT OFFICER / ACCOUNT OFFICER

1.

Which of the following elements is not related to audit quality?

A.

due diligence

B.

independence

C.

audit fees

D.

audit competence

2.
A.

Which of the following is not internal control consideration?

To examine the weaknesses of the system, if any.

B.
To consider the proposition of introducing test checks to be performed during audit
process.
C.
To determine exactly the extent of audit work to be performed, by examining the
weaknesses of the system, if any and considering the proposition of test checks.
D.

To form an audit opinion based on the internal control tests.

3. What activities would generally account for a significant proportion of an internal

auditors time?
A.

Verifying all invoices before payment is made.

B.

Ensuring the company is operating within budget.

C.

Evaluating the effectiveness and efficiency of all phases of an entitys operations.

D.

Checking if the company is complying with all of its rules and regulations of operation.

4. In the Internal Auditing Standards it says: Internal auditors should be independent of the
activities they audit. How is this achieved when the auditors are part of the entity?
A.
Through their status in the organization and through having direct contact with the
audit committee.
B.

By liaising with the external auditors to ensure that decisions are properly made.

C.

By always reporting their findings to the shareholders at the annual general meeting.

D.
By being employed on fixed term contracts so they can act with complete
independence.
5.

Which of the following is an audit technique?

A.

Extension Verification

B.

Substantive Testing

C.

Physical Observation

D.

All of the above

6.

DDO stands for:

A.

District Disbursing Officer

B.

Divisional Disbursing Officer

C.

District Drawing Officer

D.

Drawing and Disbursing Officer

7. As per GFR Miscellaneous Expenditure means, all expenditure in the civil departments,
which does not fall under the category of:
A.

Pay and Allowances of Government servants

B.

Pensions, Contingencies, Grants-in-aid, Contributions, Stores or Works

C.

Both A & B

D.

None of the above

8.

Favorable balance of bank a/c is always:

A.

Debit balance

B.

Credit balance

C.

O/D balance

D.

Nil balance

E.
9.

Average balance
Capital + Liabilities Assets =?

A.

Zero

B.

Gain

C.

Loss

D.

Surplus

E.

Profit

10.The sale of a building is:

A.

Revenue receipts

B.

Capital receipts

C.

Income

D.

Loss

E.

Capital los

1.

2.

1.
2.
3.
4.

A.
B.
C.
D.

PAGE: BOOK::
sailors: crew
petal: flower
leaf: stalk
singers: chorus

Choose the lettered word or phrase that is most nearly opposite in meaning to the word in
capital letters.

1.

3.

1.
2.
3.
4.

A.
B.
C.
D.

PARTICULAR:
general
widespread
diffused
common

Choose the word most similar in meaning to the capitalized ones.

1.

4.

1.
2.
3.
4.
5.

A.
B.
C.
D.
E.

CHANGE:
alter
church
complete
decide
agree

15. Changes in stocks are a result of keepers

1.
2.
3.
4.

A.
B.
C.
D.

Deliberate decisions by shopkeepers

Deviations between supply and demand
Failure of sellers to sell goods
Deliberate decisions by manufactures

16. The burden of a tax falls more heavily on the sellers in a market when

1.
2.
3.
4.

A.
B.
C.
D.

1.

3.

1.
2.
3.
4.
5.

A.
B.
C.
D.
E.

1.

4.

1.
2.
3.
4.

A.
B.
C.
D.

both supply and demand are elastic

both supply and demand are inelastic
demand is inelastic and supply is elastic
demand is elastic and supply is inelastic
ILLUSION: REALITY::
fancy: fact
sky: earth
ethereal: real
dream: work
water: ice
SNAKE: FANG::
vampire: teeth
rabbit: hutch
snail: antennae
action: fin

Choose the lettered word or phrase that is most nearly opposite in meaning to the word in
capital letters.

1.

5.

SIMULATED:

1.
2.
3.
4.

A. real
B. contrived
C. unassuming
D. false

6. Integrated risk management involves both:

1.
2.
3.
4.

A. Insurance and market risk

B. Insurance and operational risk
C. Insurance and financial risk
D. Insurance and interest rate risk

17. What is cash discount?

1.
2.
3.
4.

A. When payment is made in cash

B. When payment is made by cheque
C. When purchases are made in bulk
D. When payment is made before due date

18. Which of the following techniques used for evaluating capital projects is not based on
cash flows?

1.
2.
3.
4.
5.

A. Pay Back Method

B. Discounted Pay Back Method
C. Internal Rate of Return
D. Accounting Rate of Return
E. Net Present Value

Each question below consists of a related pair of words, followed by five lettered pairs of
words. Select the lettered pair that best expresses a relationship similar to that expressed in
the original pair.

1.

2.

LIQUID: HYDRAULICS::

1.
2.
3.
4.

A.
B.
C.
D.

motion: dynamics
water: hydroponics
data: statistics
music: eurythmics

Choose the lettered word or phrase that is most nearly opposite in meaning to the word in
capital letters.

1.

3.

1.
2.
3.
4.

A.
B.
C.
D.

PUBLIC:
civic
private
republic
long

Choose the word most similar in meaning to the capitalized ones.

1.

4.

ANALOGY:

1.
2.
3.
4.

A.
B.
C.
D.

contract
contest
similarity
necessity

1.

2.

PAGE: BOOK::

1.
2.
3.
4.

A.
B.
C.
D.

sailors: crew
petal: flower
leaf: stalk
singers: chorus

Choose the lettered word or phrase that is most nearly opposite in meaning to the word in
capital letters.

1.

3.

1.
2.
3.
4.

A.
B.
C.
D.

PARTICULAR:
general
widespread
diffused
common

Choose the word most similar in meaning to the capitalized ones.

1.

4.

1.
2.
3.
4.
5.

A.
B.
C.
D.
E.

CHANGE:
alter
church
complete
decide
agree

15. Which one of these might you consider a violation in MANOVA and may be worth looking
at alternative analyses

1.
2.
3.
4.
5.

A.
You have 30 participants per group in your betweenparticipants design.
B.
You have normally distributed dependent variables and all
linear combinations of the dependent variables.
C.
Boxs M has an associated p-value of < 0.05 and you have
unequal sample sizes.
D.
You have equal numbers of participants and it is a large
sample size.
E.
All of the above

16. A group of people in which migration is zero is called

1.
2.
3.
4.
5.

A.
B.
C.
D.
E.

1.

5.

1.
2.
3.
4.

A.
B.
C.
D.

1.

6.

1.
2.
3.
4.

A.
B.
C.
D.

Radix
Cohart
Population
Mid year population
All of the above
The word transformation is closest in meaning to:
trend
event
change
custom
The word rogues refers to a type of:
beverage
person
book
coffee

15. Changes in stocks are a result of keepers

1.
2.
3.
4.

A.
B.
C.
D.

Deliberate decisions by shopkeepers

Deviations between supply and demand
Failure of sellers to sell goods
Deliberate decisions by manufactures

16. The burden of a tax falls more heavily on the sellers in a market when

1.
2.
3.
4.

A.
B.
C.
D.

both supply and demand are elastic

both supply and demand are inelastic
demand is inelastic and supply is elastic
demand is elastic and supply is inelastic

NTS Test Preparation Economics Mcqs Paper

The
Balance
of
payment
is
(a)
The
balance
of
amount
after
(b) The balance of income and expenditure in the annual budget

understood
paying

as:
debt

(c) The balance between a nations expenditure on imports and its receipts from exports.
(d) None of the above
2.
Pinpoint
the
main
objectives
of
World
(WTO):
(a) Fix a quota for each member country trading in International Market

Trade

Organization

(b) To eliminate quota system and promote free competition in trade.

(c)
To
secure
European
(d)
To
abolish
within member countries

3.
The
number
(a)
(c) 1230 (d) 1503

Third

World

completely

of
560

markets

custom

family

duties

welfare

for
on

centres
(b)

American
items

in

of

Punjab

and
goods
trade

are:
940

4.
Which
of
the
following
statement
is
not
true?
(a)
The
World
Bank
has
to
affiliates,
the
International
Development
Association
and
the
International
Finance
Corporation.
(b)
The
membership
of
the
IMF
is
the
principal
condition
for
membership
of
the
World
Bank.
(c)
The
World
Bank
provides
loans
to
such
countries
whose
balance
of
payments
condition
is
not
favourable
(d)
The
World
Bank
finance
all
kinds
of
capital
infrastructure
such
as
roads
and
railways,
telecommunications,
seaports
and
power
facilities
in
the
developing countries.

5.
(a)

To

Identify
provide

the
loans

main
to

the

functions
members

of
of

UNO

IMF:
for

development
of
(b)
To
make
foreign
countries
that
want
(c)
To
make
foreign
countries
facing
(d) None of the above

6.
The
Shelter
(a)
(c) 1990 (d) 1992

United
for

Industrial
infra
exchange
resources
available
to
import
essential
items
exchange
resources
available
balance
of
payments

Nations

celebrated
the

for
of
for

International
Homeless
(b)

1985

Year

7.
The
Islamic
Development
US
dollars
in
Capital
to
(b)
International
Islamic
Technology
(c)
Refugees
(d) None of the above

Bank
would
provide
half
a
create(a)
Private
Pan
Islamic
Foundation
for
Science

8.
The
domestic
production
approximately
(a)
44,300
Barrels
(c) 65,200 Barrels (d) 70,000 Barrels

of

9.
The
regulations
of
enforced
(a)
1
January
(c) 1 July 2004 (d) 1 January 2005

10.
The
(a)
(c) U.S.A (d) U.K.

biggest
France

structure
those
food
those
difficulties

of
in:
1987

billion
Bank
and

Rehabilitation

World

crude
(per
(b)

Trade

2002

of
(b)

in

the

country

is
day)
Barrels

57,700

Organization
(b)

market

oil

Fund

Pakistani
Saudi

(WTO)

shall

January

exports

be
from:
2003

is:
Arabia

11.
The
biggest
market
of
Pakistani
Imports
is:
(a)
USA
(b)
U.K.
(c)
Russia
(d)
Japan
12.
The
Government
has
reduced
the
rate
of
profit
on
National
Saving
Schemes
primarily
for
the
reason
of:
(a)
Enhancing
the
level
of
saving
rate
Economics
3
(b)
Discouraging
the
blockage
of
money
in
such
schemes
(c)
To
encourage
the
investors
to
invest
their
capital
in
active
business
ventures
(d)
To
bridge
the
gap
between
their
profit
rate
and
Banks
mark up rate on loans

13.
Pakistans
domestic
demand
growing
annually
with
(a)
3
percent
(c) 8 percent (d) 15 percent

14.
The
Government
(a)
(c) 1979 (d) 1981

Womens

Division

was
in

for
the
(b)

created

1974

15.
The
first
World
Nations
was
(a)
(c) Nairobi (d)Ankara

petroleum
products
in
percentage
of:
5
percent

in

the

Federal
January:
1977

(b)

Population
held
Kampala

16.
Difference
between
a
(a)
Trade
Balance
(c) Trade Surplus (d) Volume of Trade

Conference
in

countrys

exports
(b)

under
1975

and
Trade

the

United
at:
(b)Bucharest

imports

is:
Deficit

17.
Cash
crop
is
(a)
Which
gives
high
profit
(b)
Which
is
grown
(c)
Which
is
grown
after
taking
(d)
None
of
the
18.
The
lowering
of
the
value
of
a
market
or
against
specific
other
exports
cheaper
and
imports
(a)
Devaluation
(c)Inflation (d) Deflation

the

crop:
to
the
farmers
only
for
sale
Cash
loan
from
Banks
above
one
currency
in
the
international
currencies,
which
makes
expensive
is
called:
(b)
Revolution

19.
The
value
of
the
output
of
all
goods
and
services
produced
within
a
nations
borders,
normally
given
as
a
total
for
the
year.
It
thus
includes
the
production
of
foreign
owned
firms
within
the
country,
but
excludes
the
income
from
domestically
owned
firms
located
abroad,
is
called:
(a)
Gross
National
Product
4
General
Knowledge

MCQs
(b)
Gross
Home
Products
(c)
Gross
Domestic
Product
(d) General Domestic Production

20.
Dow
Jones
(a)
For
measuring
(b)
For
measuring
the
Japanese
(c)
For
measuring
the
industrial
(d) None of the above

index
Industrial
average
average

The
accounting
process
A)
Quantifiable
B)
Non
quantifiable
C)
All
D) None of them

is
profit
share
share

price

the
in
price
of

involves
in
economic
economic
of

scale:
a
year
of
leading
companies
major
US
companies

recording:
event
event
them

Q-2
A)
B)
C)

In

accounting

an

Economic

event

is

referred

Bank

to

as:
Cash
statement
Transaction

D) Exchange of money

Q-3 Identify the correct sequence of accounting process

A)
B)
C)
D) Identifyingrecordingcommunicating

CommunicatingRecordingIdentifying
RecordingCommunicatingIdentifying
Identifyingcommunicatingrecording

Q-4 Bookkeeping mainly concerns with which part of accounting process?

A)
B)
Preparing
C)
Recording
D) Auditing the books of accounts

financial
financial

Analysing
statements
information

Q-5 Financial accounting provides financial information to all of the following external users except:
A)
B)
C)
D) Managers

Government

agencies
investors
Creditors

Q-6 For which step of accounting process the accountants of business entity prepare financial
statements?
A)
B)
C)
D)

Identification
Communication
Recording
Making

of
of
decisions

economic
financial
financial
about

event
information
information
business

Q-7
A)
B)
C)
D)

Keeping

the

log

of

financial

information

in

books

of

original

entries

is called
Recording
summarizing
Grouping
Processing

Q-8 Auditing is what?

A)
Reporting
B)
Examination
C)
Preparation
D) maintaining the ledger records

the
of

financial
financial
financial

information
statements
statements

Q-9 Which of the following is the external user of financial statements?

A)
Manager
B)
CEO
C)
Creditor
D) Controller of the business

of

the
the
the

of
of

business
business
business

Q-10 Which of the following is the internal user of financial statements?

A)

Creditor
B)
C)
D)

of
Government
Shareholder
of
Manager
of

the
the
the

business
agency
business
business

B)
C)
Q-11_________ is the first phase of accounting cycle
A)

Identifying
B)
C)
D)
12)

an
Posting
Making

economic
Preparing
entries
decisions

event
to

or
ledger
about

transaction
journals
accounts
business

Q-12 Financial statements differ from management account because

A) They are mainly prepared for external users of financial information

B)
They
are
more
complex
C)
The
are
the
summary
D) The are prepared on basis of actual concept

and

hard
to
accounting

of

prepare
data

Q-13 ________ is a separate legal entity that Total capital can be divided in many shares
A)
Partnership
B)
Sole
proprietorship
C)
Company
D) Non-profit organization

Q-14 An asset posses which of the following?

A)

Q-16
A)
B)
C)

________

Future
economic
benefits
B)
All
kind
of
benefits
C)
Expenses
for
D)
Merits
and
Demerits
Q-15
Liabilities
are
which
A)
B)
C)
Future
D) Expenses

is

the

decrease

in

gross

inflow

for

the
for
the
the
for
the
of
the

of

economic

business
business
business
business
following?
Resources
Obligations
benefits

benefits
Assets
Liabilities
Income

D) Expenses

Q-17 The gross

A)
B)
C)
D) Income or gain

economic

benefits

for

the

business

are what?
Expenses
Obligations
Creditors

Q-18 An asset must be _______ by the business to be shown as an asset in its balance sheet
A)
Possessed
B)
Owned
C)
Controlled
D) Used
Q-19
Liability
A)
B)
C)
D) Non of them

are

arisen

from
which
Present
Future
Past

of

the

following

events?
event
event
event

Q-20 Which of the following can be considered as the most important phase of accounting cycle and
it is the primarily objective of financial accounting?
A)
B)
Preparing
C)
Preparing
D) Preparing trial balances

Identifying
T
financial

transactions
Accounts
statements

Q-21 Which is the most important characteristic that all assets of a business have?
A)
Long
life
of
assets
B)
Value
of
assets
C)
Intangible
nature
of
assets
D) Future economic benefits

Q-22
What
A)
B)
C)
D) Liabilities+Capital

is
Assets+

the

basic

accounting
equation?
Capital+Liabilities=Assets
liabilities
=Capital
Capital+assets=liabilities

Q-23
Which
A)
B)
C)
D) Creditors

of

the

following

Q-24
What
A)
Cash
from
B)
liability
of
C)
Owners
claim
D) Owners claim on total liabilities

Q-25
A)
B)
C)
D) Bank loan

Identify

the

Cash

is

is
the
a
on

asset

total

from

and

the

cash

Notes

liability?
Cash
Equipment
Debtors

equity?
business
business
assets

following
equivalent
Creditors
payable

Q-26 _______ the withdrawal of cash and goods by the owner of the busienss for his/her personal
use
A)
Depreciation
B)
Drawings
C)
Outflow
of
cash
D) Appreciation

Q-27
Net
A)
Expenses
are
B)
Expenses
are
C)
D) Liabilities are greater than income

loss
greater
less

occurs
than
than

when
Income
Income
Expenses=Income

Q-28

Double

entry

implies

A)
Recording
entries
B)
Recoding
entries
in
C)
Recording
two
aspects
D) Recording every transaction in books
Q-29
Identify
A)
B)
C)
D) Rent expenses account

Q-30 Which
A)
B)
C)
D)
ANSWERS:

of

the

following
Rent
Rent
insurance

the
Machinery
Building
Creditors

accounts

Cash

can

that

in
Ledger
every

of

journal
account
transaction

nominal

be classified
expenses
income
expenses

account
account
account
account

as

real

account?
account
account
account
account