ACCOUNTING AND AUDITING

FINANCIAL ACCOUNTING

1 Gani & EJAZ's Principles of accounting and Advanced Accounting (Final accounts,
Partnership, Bank reconciliation, Non-profit organizations and capital and revenue)
2 Meigs and Meigs' Accounting-basis for business decision (Chapter 1 to 5)
3 Shukla's Financial Accounting 1 (Additional practice)

COST ACCOUNTING

1 Matz & usury's Cost accounting (chapter 1 to 6) and standard costing, budgeting, by-
product costing and marginal costing
2 HILTON's managerial accounting (Additional practice and theory for objective type
preparation) standard costing, marginal costing, process costing, budgeting, LIFO and
FIFO.

AUDITING

Khawaja Amjad Saeed's AUDITING.(only the topics indicated in syllabus)

TAXATION

mohammad moazzam mughal's INCOME TAX (only the sections mentioned in the
syllabus)

BUSINESS ORGANIZATION

INTRODUCTION TO BUSINESS by saeed nasir.(only related topics)

(I will provide details of some more subjects as soon as i am able to finalize the the
material sources.)
ACCOUNTANCY AND AUDITING PAPER-I
Solved Mcqs 2000 to 2009
MUHAMMAD UMAR (MBA-Finance) - CSS CANDIDATE 2010
C.E 2000

(1) Double entry book-keeping was fathered by:

(a) F.W.Taylor
(b) Henry Fayol

(c) Lucas Pacioli.

(2) Funds Flow Statement and sources and application statement are:’
(a) Synonymous
(b) Antagonistic
(c) None of these.

(3) Depreciation in spirit is similar to:

(a) Depletion
(b) Amortization
(c) Depression.
4) Balance Sheet is always prepared:
(a) for the year ended.
(b) As on a specified date.
(c) None of these.
(5) In Insurance, the following Profit and Loss Accounts are prepared:
(a) Separate for Fire, Marine, and Accidents etc.
(b) Consolidated for (a) above.
(c) None of these.
(6) Partners in Pakistan can today be fixed at the following numbers:
(a) 20
(b) 50
(c) 75.
(7) Flexible budget is a budget with the following features:
(a) Changes with volume of production and sales.
(b) Changes with variable expenses
(c) Changes in Direct material.
(8) Break Even can be calculated as under

(b) Closed-end mutual funds

(c) None of these.
(17) Directors Report is---- in respect of financial report constituent.
(a) Mandatory for a limited Company
(b) Voluntary for a limited Company
(c) None of these.

(18) Every limited Company in Pakistan is required by law to include the following along
with financial reports:
 (a) Ratio Analysis
(b) Chairman’s Review

(c) None of these.

(19) Cash budget excludes the following:
(a) Non-Cash items
(b) Cash items
(c) Purchase on Credit items.
(20) NGOs are legally required to:
(a) Prepare accounts in a prescribed manner under the law.
(b) Prepare accounts as desired by donors.
(c) None of these.
C.E 2001

(1) Books of original entry are called:

(a) Ledger
(b) Work sheets

(c) Journal
(d) None of these

(2) For preparing balance sheets prepaid expenses are shown as part of:
(a) Liability
(b) Equities

(c) Assets
(d) None of these
(3) Unpaid and unrecorded expenses are called:
(a) Prepaid expenses
(b) Accrued expenses
(c) Additional expenses
(d) None of these
(4) Amount, cash, or other assets removed from business by owner is:
(a) Capital

a. Freight in
b. Trade discount
c. Purchase discount
d. Purchase return
19. Bonus payable only on the maturity of the policy is termed as:

a. Cash bonus
b. Reversionary bonus
c. Interim bonus

d. Bonus is reduction of premium

20. Rebate on bill discounted (unearned discount) is:
a. An expense
b. An income
c. A liability
d. An asset
C.E 2009
(i) Which of the following transactions represent an expense?

(a) The owner withdrew Rs. 1,600 from the business for personal use
(b) Purchased a photocopying machine for Rs. 2,750 cash
(c) Purchased medical supplies for cash from Healthcare Labs. Rs. 1,630

(d) Received a telephone bill amounting to Rs. 550 to be paid within ten days.
(ii) Which of the following statements about accounting procedures is not correct?

(a) The journal shows in one place all the information about specific transactions
arranged in chronological order.
(b) A ledger account shows in one place all the information about changes in a specific
asset or liability or owner’s equity.

(c) Posting is the process of transferring information from ledger accounts to the
journal.
(d) The product of the accounting cycle is the formal financial statements such as balance
sheet and income statement.
(iii) Which of the following financial statements reflects the overall financial position
of the business?
(a) Statement of cash flows (b) Income Statement
(c) Balance Sheet (d) Statement of owner’s equity
(iv) Trial Balance is prepared:
(a) To ensure arithmetical accuracy of accounting records.

(b) To establish complete accuracy of accounting records.

(c) To determine the amounts payable to suppliers for purchase of goods on credit.
(d) To ensure efficient use of resources of the business.

(v) The net sales of Fresh Foods were Rs. 200,000 for the current month. If the cost
of goods available for sale was Rs. 180,000 and the gross profit rate was 35%, the
ending inventory must have been:
(a) Rs. 70,000 (b) Rs. 1,30,000 (c) Rs. 50,000 (d) Rs. 63,000
(200,000 – 180, 000 – X = 70, 000( 0.35* 200,000 = 70,000 )) = X= 50, 000
(vi) In the accounting cycle:
(a) Closing entries are made before adjusting entries.
(b) Closing entries are made after the adjusting entries.
(c) Adjusting entries are made after financial statements are prepared.
(d) Financial statements are prepared after closing trial balance.
(vii) Which of the following is an intangible asset?
(a) An investment in marketable securities. (b) Leasehold land.
(c) Loose tools. (d) Copy rights.
(viii) Expense is recorded in the accounting records when:
(a) Cash is paid (b) The purchase order is placed with the supplier
(c) Purchases are made (d) None of these
(ix) The cash basis of accounting:
(a) Is widely used by manufacturing firms.
(b) Is often used by merchandising firms.
(c) Usually results in a larger amount of tax than under accrual basis accounting.
(d) Can not be used in filing income tax returns.
(x) The straight-line method of depreciation:
(a) Generally gives best results because it is easy to apply
(b) Should be use din a period of inflation, because it accumulates the fund for the
replacement of asset at a uniform rate.
(c) Is the best method used for wasting assets.
(d) Ignores fluctuations in the rate of asset usage.
(xi) Which of the following accounts are not closed at the end of an accounting
period?
(a) Revenue accounts (b) Expense accounts (c) Drawing accounts (d) Asset accounts
(xii) Under periodic inventory system cost of good sold is determined and recognized
in the books of accounts:
(a) At the time of purchase of goods (b) At the time of sale of goods
(c) At the end of the year (d) None of these
(xiii) Which of the following is not a use of working capital?
(a) Repayment of long term debt (b) Cash dividend declared but not paid

(c) Payment of an account payable (d) Acquisition of treasury stock.

(xiv) A transaction caused a Rs. 10,000 decrease in both assets and total liabilities.
This transaction could have been:
(a) Purchase of furniture for Rs. 10,000
(b) An asset costing Rs.10,000 was destroyed by fire
(c) Repayment of bank loan Rs. 10,000
(d) Collection of a Rs.10,000 account receivable

(xv) Which ratio indicates a firm’s ability to pay current liabilities in the shortest
possible time?
(a) Current Ratio (b) Equity Ratio (c) Debt Ratio (d) Quick Ratio

(xvi) If we add the average number of days to turn the inventory over and the
average age of receivables (in number of days), we arrive at:

(a) The company’s fiscal period

(b) The sales volume of the business
(c) The company’s operating cycle
(d) Nothing meaningful
(xvii) Which of the following is least important in determining the fair market value
of a share?

(a) Earnings and dividends per share

(b) Book value per share
(c) The available supply of shares and the demand to purchase the shares.

(d) The par value of share.

(xviii) Financial statements prepared by a business firm are most likely to be:
(a) Fully reliable (b) Tentative in nature
(c) Relevant for all types of decisions (d) Always misleading
(xix) One of the following is not an officer of a company:
(a) Share registrar (b) Controller (c) Secretary (d) Treasurer
(xx) A deficit appears on the balance sheet:
(a) Among the assets
(b) As a deduction from total paid-up capital
(c) Among the liabilities
(d) None of these
 Books for optional subjects
Quote:
Note : Here i mention list of books which are recommended by CSPs and Veteran
members. Conducive members are requested to post reference of books under this thread.
Constitutional Law

1. World Constitutions by Kaeley

2. How States Are Governed
3. Studies In The Constitution Of Pakistan by Dr. safdar mahmood

Economics

Paper I :

1. KK Dewett (Modern Economic Theory)

2. Paul A. Samuelson(Economics international edition)

Paper II :

1. Economics of Pakistan by Saeed Nasir and Kamal Haider

International Relations

1. International Relations by Prakash Chander

2. Introduction to international relations : power and justice by T. A. Couloumbis
and J. H. Wolfe
3. International Relations and Political Theory by Kamran Shahid

Geography

1. Physical Geography by A.Strahler

2. Human geography by Deblij
3. A Geography of Pakistan by Huma Naz Sethi

Journalism

1. Mass Communication by Imtiaz Shahid

2. Exploring Journalism by Safdar Mahmood
3. Any editorial etc. on Journalism in DAWN or leading newspapers

Sociology

1. Sociology by Horton and Hunt

 2. Pak. Sociology by Ch. Iqbal (For MA classes)
3. Sociology by Abd-ul-Hameed Taga
4. Sociology an introduction by S.M Shahid

Political science

1. Muslim Political Thought by Muhammad Aslam Chaudhry

2. Western Political Thought by Judd Harmon
3. Political science Theory and Practice by Mazharul Haq

INDO PAK HISTORY

PAPER I

books by

1. K. Ali
2. Sohail Bhatti

PAPER II

1. Struggle for Pakistan by I.H.Quershi ( for pre-partition period)

2. Pakistan Affairs by Ikram Rabbani
3. Constitutional and political history of pakistan by hamid Khan ( for post- partition
period )

US History

Books by

1. R. K. Majumdar
2. A. N. Srivastva

ACCOUNTING AND AUDITING

FINANCIAL ACCOUNTING

1) Gani & EJAZ's Principles of accounting and Advanced Accounting (Final accounts,
Partnership, Bank reconciliation, Non-profit organizations and capital and revenue)
2) Meigs and Meigs' Accounting-basis for business decision (Chapter 1 to 5)
3) Shukla's Financial Accounting 1 (Additional practice)

COST ACCOUNTING

1) Matz & usury's Cost accounting (chapter 1 to 6) and standard costing, budgeting, by-
product costing and marginal costing
2) HILTON's managerial accounting (Additional practice and theory for objective type
preparation) standard costing, marginal costing, process costing, budgeting, LIFO and
FIFO.

AUDITING

1) Khawaja Amjad Saeed's AUDITING.(only the topics indicated in syllabus)

TAXATION

1) Mohammad moazzam mughal's INCOME TAX (only the sections mentioned in the
syllabus)

BUSINESS ORGANIZATION

INTRODUCTION TO BUSINESS by saeed nasir.(only related topics)

Statistics

1. Stats by prof. sher muhammad chaudhry for Ba/BSc.

British History

1. British History by Birdsall S. Viault

2. Mastering Modern British History by Norman Lowe

European History

1. Mastering Modern European History by Stuart T. Miller.

2. About European history by L.p.cock.
3. European History by IJ Chawla.

Physics

1. Modern physics by A.BEISER

2. University physics by SEARS ZEMANSKY
3. Fundamentals of physics by HALLIDAY AND RESNICK

Agriculture

1. Towards understanding agriculture by Mohd Ishaq Khan

2. Books published by National Book Foundation in collaboration with USAID like
Horticulture, Plant Breeding, Extension Methods etc
3. Agriculture by Asif Malik
4. Agriculture by Masood A. A. Qureshi
5. MCQs of Agriculture for css/pcs by Dogar's publishers.

Sindhi

1. Sindhi adab jo tanqidi ibheyas by abdulmajeed memon

2. Sindhi boli ji mukhtasar tarikh by leghari
3. Sindhi adab jo mukhtasar jaizo by abduljabar junejo

Islamic History & culture

1. History of Islam By Mazhurl Haq

2. History of Saracens by Syed Ameer Ali
3. Plus used Google to get information about Turkey Sultanat-Usmania
4. History of the arabs by Phillip.K.Hitti
5. Study of islamic History by K.Ali

Public Administration

1. Public Administration By Dr. Sultan

2. Personnel Management by Dr. Sultan
3. Tiyagi Book for the Schools and approaches of Public administration

Forestry

1. Two volumes of Prof. Dr. Masood A. A. Qureshi

2. Yellow pages coming with the Dawn of Monday
3. Forestry by Muhammad iqbal Shiekh and SM hafeez

International Law

1. Internation Law by S.K Kapoor

2. International Law by J.J Starke