Ilmi Guide 349

MODEL PAPER 2
PART- ENGLISH
1. A noun (such as courage or freedom) that names an idea, event, quality, or concept is called
(a) Abstract Noun (b) Common noun (c) Mass noun (d) Concrete noun
2. He was treated like a ____ and cast out from his community.
(a) ascetic (b) prodigy (c) prodigal (d) pariah
3. A person who refuses compliance is called_______:
(a) recalcitrant (b) sadist (c) radical (d) theist
4. She is away ____ business.
(a) about (b) of (c) in (d) on
5. More of us die in bed than out of it..
(a) Verb (b) Pronoun (c) Adverb (d) Adjective
6. The child chose the hat. (change active to passive voice)
(a) A hat was chosen by the child. (b) The hat was chosen by the child.
(c) The cap was chosen by the child. (d) The hat wasn't chosen by the child.
7. I have eaten a burger. (change active to passive voice)
(a) A burger has been eaten by me. (b) A chocolate has been eaten by me.
(c) A burger was being eaten by me. (d) An ice cream has been eaten by me.
8. Identify the correct word:
(a) Coordination (b) Corridination (c) Coordenation (d) Coardination
Direction (Q. 9 to 12) Choose the correct synonyms of given words
9. Admonitory:
(a) Low-handed (b) Glad (c) Tracking (d) Reproving
10. Bilingual:
(a) Clear in expression of ideas (b) Of the brain
(c) Talkative (d) Using two languages
11. Misapprehension:
(a) Wrong (b) Mistaken idea (c) Trickery (d) Unfair seizure
12. Discard:
(a) Prefer (b) Reject (c) Disagree (d) Renounce
Direction (Q. 13 to 15) Choose the correct antonyms of given words
13. Choke:
(a) Air (b) Strangle (c) Strife (d) None of these
14. Lessen:
(a) Augment (b) Abash (c) Shorten (d) None of these
15. Soul:
(a) Matter (b) Vital (c) Ego (d) Mind
Direction (Q. 16 to 20) read the paragraph and mentions the answers
The casual horrors and real disasters are thrown at newspaper reader without discrimination. In the contemporary
arrangements for circulating the news, an important element, evaluation is always weak and often wanting entirely.
350 Ilmi Guide

There is no point anywhere along the line somewhere someone put his foot down for certain and says, "This is
important and that does not amount to row of beans; deserves no ones attention, and should travel the wires no
farther". The junk is dressed up to look as meaningful as the real news.
16. Evaluation of news would imply
(a) less dependence on modern systems of communication
(b) more careful analysis of each news story and its value
(c) separating beans from junk
(d) discriminating horrors from disasters
17. The writer of the above passage
(a) seems to be happy with the contemporary arrangements for circulating news
(b) is shocked by the casual stories about horrors and disasters reported in the newspapers
(c) wants better evaluation of news before publication
(d) wants to put his foot down on news stories
18. In the above passage, the phrase "amounts to a row of beans" means that the news
(a) is weak and often wanting entirely
(b) deserves no one's attention
(c) should travel the wires
(d) is junk dressed up as real news
19. Newspapers lack a sense of discrimination because
(a) they do not separate the real news from mere sensationalism
(b) they have to accept whatever is received on the wires
(c) limited manpower makes serious evolution impossible
(d) people don't see the difference between 'junk' and 'real' news
20. The passage implies that
(a) there has to be censorship on newspapers
(b) there is no point in having censorship
(c) newspapers always dress up junk to look meaningful
(d) one has to be strict in selecting news items
PART SUBJECT
21. Which of the following is not considered a financial statement?
(a) These Are All Financial Statements (b) Balance Sheet
(c) Trial Balance (d) Income Statement
22. What is the amount earned from the sale of goods and services called?
(a) Growth (b) Revenue (c) Credit (d) Profit
23. What is it called when your expenses are greater than your revenues on an income statement?
(a) Debt (b) Net Loss (c) Loss (d) Minor Loss
24. An income statement encompasses which of the following?
(a) Assets, Liabilities, Owners Equity (b) Expenses, Revenues, Net Income or Net Loss
(c) Liquidity and Maturity (d) T-Charts, Balance Sheets and Trial Balances
25. A cost that changes with the number of units produced, but that can never be zero, is what kind of cost?
(a) Mixed cost (b) Period cost (c) Variable cost (d) Product cost
26. Manufacturing overhead is allocated as what kind of cost?
(a) Variable cost (b) Period cost (c) Product cost (d) Fixed cost
27. A cost that changes with the number of units produced and is zero when no units are produced is what kind
of cost?
(a) Period cost (b) Mixed cost (c) Variable cost (d) Product cost
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28. A cost that remains unchanged across the relevant range of units produced is what kind of cost?
(a) Period cost (b) Mixed cost (c) Fixed cost (d) Product cost
29. When revenue is greater than expenses, you have a ___?
(a) Net Loss (b) Net Income (c) Contributed Capital (d) Historical Valuation
30. Assets - Liabilities = ____?
(a) Net Income (b) Revenue (c) Net Loss (d) Shareholder's Equity
31. Which financial statement shows the results of the operating activities of a firm for a specific period of time?
(a) Income Statement (b) Statement of Cash Flow
(c) Balance Sheet (d) Trial Balance sheet
32. This statement reports the net cash flows relating to operating, investing, and financing activities for a period
of time?
(a) Income Statement (b) Unadjusted Trial Balance
(c) Comparative Balance Sheet (d) Statement of Cash Flows
33. The amount of cash paid in acquiring an asset is called what?
(a) Current Replacement Cost (b) Present Value
(c) Net Realizable Cost (d) Historical Cost
34. Which is an example of an intangible asset?
(a) Cash (b) Patent (c) Equipment (d) Building
35. Many individuals tend to _________ their cash inflows and __________ their cash outflows.
(a) underestimate; overestimate (b) overestimate; accurately estimate
(c) accurately estimate; underestimate (d) overestimate; underestimate
36. A __________ difference between actual cash flows and forecasted cash flows means that the actual cash
flow level __________ the forecast.
(a) positive; was less than (b) negative; exceeded
(c) positive; exceeded (d) None of the above
37. If you do not budget for unexpected expenses in a given month, you will likely experience __________ net
cash flows than expected over time.
(a) the same (b) Higher (c) lower (d) None of these
38. __________ assets include items normally owned by a household, such as a home, a car, and furniture.
(a) Investment (b) Household (c) Liquid (d) None of these
39. __________ is (are) certificates issued by borrowers (typically, firms and government agencies) to obtain
long-term funds.
(a) Bonds (b) Stocks (c) Commercial paper (d) None of the above
40. Which of the following is not an example of a long-term liability?
(a) Student loan (b) Car loan
(c) Mortgage (d) Purchases on credit at a local grocery store
41. In order to communicate, motivate and delegate a manager must have:
(a) Political skills (b) Conceptual skills (c) Technical skills (d) Interpersonal skills
42. Which of the following is called output of a system?
(a) Services (b) Material (c) Human (d) Information resource
43. Who is credited for the theory of motivation based on the hierarchy of needs?
(a) Abraham Maslow (b) Douglas McGregor (c) Henri Fayol (d) Mary Parker Follett
44. Which of the following is NOT an example of a constituency that makes up the specific environment?
(a) Customers (b) Socio-cultural (c) Suppliers (d) Competitors
45. If we deduct grants for creation of capital assets from revenue deficit, we arrive at the concept of
(a) primary deficit (b) net fiscal deficit
(c) budgetary deficit (d) effective revenue deficit
46. Equality of income and equality of opportunity is refers to:
(a) Equality (b) Political equality (c) Economic equality (d) Human equality
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47. The main purpose of business ethics is to?

(a) Understanding ethical uncertainties (b) Principles and concepts
(c) Application of practices (d) All of the above
48. Which theory includes means of production and selling one's labour?
(a) Capitalist systems (b) Free economy system
(c) Socialist system (d) None of the above
49. Which of the following is NOT a core function of management?
(a) Planning (b) Organizing (c) Motivating (d) Leading
50. Which of the following business type has longest life time?
(a) Sole proprietorship (b) Partnership
(c) Joint stock company (d) All of the given options
51. Which of the following is/are the component/s of business?
(a) Industry (b) Commerce
(c) Both industry and commerce (d) Trade and aids to trade
52. The purpose of an _________is to measure something or calculate a value for it. Although the process
producing an assessment may involve an audit by an independent professional, its purpose is to provide a
measurement rather than to express an opinion about the fairness of statements or quality of performance.
(a) Audits (b) Finance (c) assessment (d) Accounting
53. As a general rule, ________should always be an independent evaluation that will include some degree of
quantitative and qualitative analysis whereas an assessment infers a less independent and more
consultative approach.
(a) Audits (b) Finance (c) Cost (d) Accounting
54. Auditors of financial statements can be classified into
(a) Five categories (b) Two categories (c) Three categories (d) Four categories
55. ________are employed by the organization they audit
(a) Internal auditors (b) External auditors (c) Finance auditors (d) None of the above
56. The most used Internal Audit standards are those of the Institute of ________.
(a) Internal auditors (b) External auditors (c) Finance auditors (d) None of the above
57. ________are used when the firm lacks sufficient expertise to audit certain areas, or simply for staff
augmentation when staff are not available.
(a) Internal auditors (b) External auditors (c) Finance auditors (d) Consultant auditors
58. _________may be consultants or employed by the organization.
(a) Internal auditors (b) External auditors (c) Quality auditors (d) Consultant auditors
59. During audit of the financial statements, the auditors are concerned with the verification and determination
of which one of the following items?
(a) Statements, accuracy, and feasibility (b) Date, accuracy, and reliability
(c) Policies, value, and reliability (d) Cycle, policies, and reliability
60. Which one of the following authorities shall fix the remuneration of the auditors, if auditors are appointed by
the SECP? (Companies Ordinance,1984)?
(a) Directors (b) Shareholders (c) Company registrar (d) SECP
61. The phrase (Scope of an Audit) refers to which one of the followings?
(a) Engagement letters (b) Audit procedures (c) Audit evidence (d) Reasonable assurance
62. If the procuring agency has rejected all bids under rule 33 it may call for a______
(a) Emergency (b) Repeat orders (c) Re-bidding (d) Value for money
63. Which of the following would not be an example of feed forward?
(a) Information on output production variances
(b) News regarding the emergence of a new market for a company's products.
(c) Information regarding political unrest in a country in which a company has a number of production
facilities.
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(d) Advance news of a potential industrial dispute.

64. ________means a person who submits a bid;
(a) Bid (b) Bidder (c) Contractor (d) Competitive bidding
65. ________means a procedure leading to the award of a contract whereby all the interested persons, firms,
companies or organizations may bid for the contract and includes both national competitive bidding and
international competitive bidding;
(a) Bid (b) Bidder (c) Contractor (d) Competitive bidding
66. ________means a person, consultant, firm, company or an organization who undertakes to supply goods,
services or works;
(a) Bid (b) Bidder (c) Contractor (d) Competitive bidding
67. _________means procurement of the same commodity from the same source without competition and
includes enhancement of contracts;
(a) Emergency (b) Repeat orders (c) Supplier (d) Value for money
68. _________means a person, consultant, firm, company or an organization who undertakes to supply goods,
services or works;
(a) Emergency (b) Repeat orders (c) Supplier (d) Value for money
69. Which of the following is not suitable action for a firm to take during a cash flow shortage?
(a) Selling off assets (b) Extend credit period with suppliers
(c) Overdraft arrangement (d) Bonus issue of shares
70. Differences between cash and profit can be explained by which of the following?
(a) Expenses being paid on time (b) Not taking credit from suppliers
(c) Cash sales (d) Cash drawings
71. A problem for a firm of maintaining high stock levels would not include:
(a) Opportunity cost of money tied up in stocks (b) Storage costs
(c) Meet unexpected demand (d) Risk of spoilage
72. If annual consumption is 150,000 units, the cost of reordering is £250 and the storage and holding cost per
unit is £48, then the economic order quantity would be:
(a) 884 units (b) 1,250 units (c) 240 units (d) 1,050 units
73. A system where stocks are not held until they are needed is known as:
(a) Just in time (b) Production budgeting
(c) Economic order quantity (d) Total quality management
74. If annual consumption is 4,000 units, the cost of reordering is £1,000 and the storage and holding cost per
unit is £25 then the economic order quantity would be:
(a) 400 units. (b) 566 units (c) 4,000 units. (d) 283 units.
75. Which of the following is not a cash inflow?
(a) Reduction in provision for doubtful debts (b) Loan taken by firm
(c) Proceeds from asset disposal (d) Cash sales.
76. If annual consumption is 9,000 units, the cost of reordering is £120 and the storage and holding cost per
unit is £1.50, then the economic order quantity would be:
(a) 1,200 units (b) 600 units (c) 849 units (d) 765 units.
77. Which of the following could not explain profits being made but cash shortages also occurring at the same
time?
(a) Extended credit period being offered. (b) Higher cash drawings.
(c) Heavy capital expenditure. (d) More loans being taken out
78. Which of the following budgets should be produced first?
(a) Production budget. (b) Purchases budget.
(c) Sales budget. (d) Master budget.
79. The Annual Financial Statement or the Statement of the Estimated Receipts and Expenditure of the
Government of India in respect of each financial year is popularly known as the
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(a) Production (b) Budget

(c) Contribution (d) sales
80. Budgeting as an activity ranges in extent from managing household finances on up to the preparation of the
Budget of the Pakistan, undertaken yearly by
(a) Parliament (b) Congress (c) President (d) None of these
81. Which kind of accountant would you go to have prepare your income tax documentation, public or private?
(a) Government (b) Private (c) public (d) Nome of these
82. What does the certification CA stand for?
(a) Accrued revenue (b) Chartered Accountant
(c) All of the above (d) Nome of the above
83. Which of the following is not a cash outflow?
(a) New equipment (b) Cash drawings (c) Depreciation (d) Commission paid
84. The expression ‘Local Fund’ denotes:
(a) Revenue administered by bodies which by law come under the control of the Government whether in
regard to the proceedings generally or to specific matters such as the sanctioning of their budgets,
sanction to the creation or filling-up of particular appointments, the enactment of leave, pension or
similar rules;
(b) the revenues of anybody which may be specially notified by the Government as such
(c) Both a & b
(d) None of these
85. ________means a certificate by the Department concerned that all the dues against the retiring
Government servant up to the date of retirement have been realized and nothing is now outstanding against
him. Such a certificate is also required to be obtained from the Estate Office concerned.
(a) Foreign Service (b) Local Fund
(c) No Demand Certificate (d) None of these
86. When you have yet to bill a customer for services rendered and have not received the money in the same
financial period that the service was performed, then the transaction is recorded as a(n) ________ (assume
accrual basis of accounting)?
(a) accrued revenue (b) accrued expense (c) unearned revenue (d) prepaid expense
87. What are internal controls designed to do?
(a) only safeguard assets
(b) only ensue accurate accounting records
(c) only achieve maximum revenue
(d) safeguard assets and optimize the use of resources
88. The procuring agency shall keep all information regarding the bid evaluation confidential until the time of the
announcement of the evaluation report in accordance with the requirements of
(a) Rule 32 (b) Rule 33 (c) Rule 34 (d) Rule 35
89. Who writes instructions that directs a computer's action?
(a) Writer (b) Programmer (c) systems analyst (d) operator
90. Who designs a computer system?
(a) Operator (b) Manager (c) systems analyst (d) programmer
91. What is a firm's payment to a supplier for merchandise inventory recorded in?
(a) sales journal (b) cash receipts journal
(c) purchases journal (d) cash disbursements journal
92. Where are amounts owed by customers for credit purchases found?
(a) accounts receivable subsidiary ledger (b) sales journal
(c) accounts receivable journal (d) general ledger
93. Which of the following transactions is not recorded in the cash receipts journal?
(a) expensing prepaid rent (b) receipt of customer payments
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(c) borrowing money from a bank (d) sale of equipment for cash
94. Where would a debit posted to accounts payable in the general ledger come from?
(a) sales journal (b) cash disbursements journal
(c) purchases journal (d) cash receipts journal
95. The owner of a business puts money into the business. What is credited?
(a) Owner a/c (b) Capital a/c (c) Investment a/c (d) Loan a/c
96. Which of the following is a control account?
(a) Capital (b) Prepaid Rent
(c) Accounts Receivable (d) Salary Payable
97. What does the abbreviation GAAP stand for?
(a) Great Accepted Accounting Principles (b) Great American Accounting Principles
(c) Generally Accepted Accounting Principles (d) Generally American Accounting Principles
98. Which accounting principle states that the same amount of time must be used for each accounting period?
(a) Accounting Period Principle (b) Time Period Principle
(c) Written Period Principle (d) Bookkeeping Period Principle
99. What is the cash basis of accounting?
(a) When cash comes in, something else must go out.
(b) Cash is always the most liquid asset.
(c) Revenue and expenses are recognized as cash comes in or goes out.
(d) All assets must be recorded by how much cash they're worth at that very moment.
100. This can be written either in an account form or a report form.
(a) Income Statement (b) Balance Sheet
(c) Trial Balance (d) Journal Entry
ANSWERS
1. a 2. d 3. a 4. c 5. b 6. b 7. a 8. a 9. d 10. d
11. b 12. b 13. a 14. a 15. a 16. b 17. c 18. b 19. a 20. c
21. c 22. b 23. b 24. b 25. a 26. c 27. c 28. c 29. b 30. d
31. a 32. d 33. d 34. b 35. c 36. c 37. c 38. b 39. a 40. d
41. d 42. b 43. a 44. b 45. d 46. c 47. b 48. a 49. c 50. c
51. c 52. c 53. a 54. b 55. a 56. a 57. d 58. c 59. b 60. a
61. b 62. c 63. a 64. b 65. d 66. c 67. b 68. c 69. d 70. d
71. c 72. b 73. a 74. b 75. a 76. a 77. d 78. c 79. b 80. a
81. c 82. b 83. c 84. c 85. c 86. a 87. d 88. d 89. b 90. c
91. d 92. a 93. a 94. b 95. b 96. c 97. c 98. b 99. c 100. b