Friday, 7 February 2020

ISLAMIC BANKING & FINANCE MULTIPLE CHOICE QUESTIONS (MCQS).

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6. The Islamic financial system works on the basis of
(A) sharing return
(B) sharing risk
(C) sharing risk and return
(D) predetermined risk and return
7. In Islamic banking and finance, any deal must have an underlying _____ backing the deal.
(A) asset
(B) profit
(C) risk
(D) currency
8. A “sukuk” is basically a Shariah-compliant
(A) loan
(B) profit
(C) bank cheque
(D) investment certificate
9. “Takaful” is basically a Shariah-compliant
(A) loan
(B) insurance
(C) investment
(D) ownership
10. Which from the following is/are NOT permitted under Islamic Financial Principles?
I. Interest
II. Short selling
III. Non-asset backed derivatives
(A) I only
(B) I and II
(C) I and III
(D) I, II and III
ANSWERS: ISLAMIC BANKING AND FINANCE MCQS
6. (C) sharing risk and return
7. (A) asset
8. (D) investment certificate
9. (B) insurance
10. (D) I, II and III

Islamic Finance MCQs

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ISLAMIC PRINCIPLES OF BANKING & FINANCE MULTIPLE CHOICE QUESTIONS (MCQS).

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1. Islamic Finance is strongly _____ oriented.
(A) profit
(B) money
(C) equity
(D) interest
2. In Islamic Finance, the owner of capital _____ the profits made by the entrepreneur.
(A) can share
(B) cannot share
(C) receive
(D) can never take
3. The Islamic financial system regards “the time value of money” as
(A) interest
(B) rent
(C) loss
(D) profit
4. The Islamic financial system regards “the monetary value of time” as
(A) interest
(B) profit
(C) loss
(D) rent
5. In Sharia law and Islamic financing, “making money from money” is
(A) permitted
(B) not permitted
(C) permitted in certain cases
(D) permitted for Islamic banks only
ANSWERS: ISLAMIC PRINCIPLES OF BANKING & FINANCE MCQS
1. (C) equity
2. (A) can share
3. (D) profit
4. (A) interest
5. (B) not permitted

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21. The Internal Rate of Return (IRR) is the rate of discount that makes Net Present Value (NPV)
(A) zero
(B) one
(C) positive
(D) negative
22. An investment should be accepted if its Net Present Value (NPV) is
(A) 0
(B) 1
(C) positive
(D) negative
23. An investment should be accepted if
(A) Rate of Return > Opportunity Cost
(B) Rate of Return < Opportunity Cost
(C) Rate of Return = Opportunity Cost
(D) A, B and C are irrelevant
24. World Trade Organization (WTO) was established on 1 January
(A) 1993
(B) 1995
(C) 1997
(D) 1999
25. The main function of WTO is to ensure that trade flows:
I. smoothly
II. freely
III. predictably
(A) I only
(B) II only
(C) I and II only
(D) I, II and III
ANSWERS: COMMERCE QUESTIONS
21. (A) zero
22. (C) positive
23. (A) Rate of Return > Opportunity Cost
24. (B) 1995
25. (D) I, II and III

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16. Which of the following is the safest investment?
(A) Treasury bills
(B) Government bond
(C) Corporate bond
(D) Stocks
17. Net Present Value (NPV) is calculated as
(A) cash inflow – cash outflow
(B) cash outflow – cash inflow
(C) PV of cash inflow – PV of cash outflow
(D) PV of cash outflow – PV of cash inflow
18. IMF provides assessments of latest public finance developments in its
(A) Fiscal Monitor Reports
(B) World Economic Outlook Reports
(C) Global Financial Stability Reports
(D) None of these
19. The ratio between amount of profit and investment is known as
(A) NPV
(B) opportunity cost
(C) risk premium
(D) rate of return
20. In Finance, risk is calculated by calculating the _____ of possible outcomes.
(A) mean
(B) standard deviation
(C) variance
(D) kurtosis
ANSWERS: COMMERCE MULTIPLE CHOICE QUESTIONS
16. (A) Treasury bills
17. (C) PV of cash inflow – PV of cash outflow
18. (A) Fiscal Monitor Reports
19. (D) rate of return
20. (B) standard deviation

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11. An investment is believed to be risky if
(A) it is dangerous
(B) it has low returns
(C) its returns are uncertain
(D) its raw material is unavailable
12. The World Bank has two goals: to promote shared prosperity in a sustainable way, and to
(A) end extreme poverty
(B) reduce difference between rich and poor
(C) invest on health and education
(D) combat deadliest diseases
13. The World Bank provides loans and grants to pursue
(A) balance of payments
(B) capital projects
(C) exports
(D) education and health related projects
14. GATT is an abbreviation for
(A) General Agreement on Transport and Trade
(B) General Agreement on Tariffs and Trade
(C) Generally Accepted Telegraphic Transfer
(D) Generally Accepted on Trade and Telegraph
15. The headquarter of World Trade Organization (WTO) is located in
(A) London
(B) New York
(C) Washington
(D) Geneva
ANSWERS: COMMERCE QUIZ
11. (C) its returns are uncertain
12. (A) end extreme poverty
13. (B) capital projects
14. (B) General Agreement on Tariffs and Trade
15. (D) Geneva

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6. The IMF was established in _____ at the Bretton Woods Conference in the United States.
(A) 1944
(B) 1945
(C) 1946
(D) 1947
7. The IMF’s primary mission is to ensure the stability of the international
(A) money exchange system
(B) money exchange rate
(C) monetary policy
(D) monetary system
8. International Monetary Fund (IMF) provides loans to member countries that are experiencing problems with
(A) excessive loans
(B) balance of payments
(C) poverty
(D) infrastructure development
9. The return that is forgone by investing in a project instead of investing in a financial market at the same level of risk is known as
(A) capital saving
(B) opportunity cost
(C) opportunity saving
(D) internal rate of return
10. Which from the following derivative is not traded on exchanges?
(A) Forward
(B) Future
(C) Bond
(D) Option
ANSWERS: NTS COMMERCE MCQS
6. (A) 1944
7. (D) monetary system
8. (B) balance of payments
9. (B) opportunity cost
10. (A) Forward

Commerce MCQs

Commerce multiple choice questions (MCQs).

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1. Which from the following is NOT among essentials of a valid contract?
(A) Consensus ad idem
(B) More than two parties
(C) Lawful consideration
(D) Free consent
2. Raw materials that are remaining at the end of the reporting period are treated as
(A) current assets
(B) fixed assets
(C) expenses
(D) liabilities
3. The selling price of some goods is $1500 and cost to sell the goods is $200. What is the Net Realizable Value (NRV)?
(A) $1000
(B) $1200
(C) $1300
(D) $1500
4. Shares of a public company are usually traded on a
(A) central bank
(B) stock exchange
(C) securities & Exchange Commission
(D) hedge fund
5. Selling bonds is a way to
(A) paying debt
(B) improve exchange rate
(C) lend loans
(D) obtain loans
ANSWERS: COMMERCE MCQS
1. (B) More than two parties
2. (A) current assets
3. (C) $1300
4. (B) stock exchange
5. (D) obtain loans

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6. What type of standard is applied in the review of historical financial information?
(A) IFAs
(B) ISAs
(C) ISAEs
(D) ISREs
7. What type of standard is applied in assurance engagements other than audits or reviews of historical financial information?
(A) IFAs
(B) ISAs
(C) ISAEs
(D) ISREs
8. What type of standard is applied on compilation engagements, engagements to apply agreed upon procedures to information and other related services engagements?
(A) ISRSs
(B) ISREs
(C) ISAEs
(D) ISQCs
9. ISQCs is an abbreviation for
(A) International Standards on Quantity Control
(B) International Standards on Quality Control
(C) International Society for Quantity Control
(D) International Society for Quality Control
10. When the account balance of “cash at bank” is verified, which from the following audit procedure(s) has/have to be performed?
I. Confirmation from the relevant banks
II. Bank reconciliations
(A) I only
(B) II only
(C) I or II
(D) I and II
ANSWERS: NTS AUDITING MCQS
6. (D) ISREs [International Standards on Review Engagements]
7. (C) ISAEs [International Standards on Assurance Engagements]
8. (A) ISRSs [International Standards on Related Services]
9. (B) International Standards on Quality Control
10. (D) I and II

Auditing MCQs



AUDITING MULTIPLE CHOICE QUESTIONS (MCQS).

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1. Fundamentally, the auditor report gives an opinion on whether the financial statements
(A) are in accordance with the national standards
(B) are in accordance with the international standards
(C) have errors, mistakes, or fraud
(D) present fairly the position and results of an entity
2. The _____ certify or guarantee that the financial statements are correct.
(A) management
(B) board of governors
(C) auditor
(D) auditor does not
3. IFAC is an abbreviation for
(A) International Federation of Accountants
(B) International Federation of Auditors
(C) International Framework for Accounting Concepts
(D) International Framework for Auditing Concepts
4. IAASB is an abbreviation for
(A) International Accounting and Auditing Standards Board
(B) International Accountants and Auditors Standards Board
(C) International Auditing and Assurance Standards Board
(D) International Accounting and Assurance Standards Board
5. What type of standard is applied in the audit of historical financial information?
(A) IFAs
(B) ISAs
(C) ISAEs
(D) ISRSs
ANSWERS: AUDITING MCQS
1. (D) present fairly the position and results of an entity
2. (D) auditor does not
3. (A) International Federation of Accountants
4. (C) International Auditing and Assurance Standards Board
5. (B) ISAs [International Standards on Auditing]

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6. What from the following is NOT a current asset?
(A) Patent rights
(B) Inventory
(C) Cash
(D) Trade receivables
7. What from the following is NOT a non-current asset?
(A) Capital
(B) Property
(C) Patent rights
(D) Inventory
8. What from the following is/are NOT tangible asset(s)?
I. Patent rights
II. Goodwill
III. Land
(A) I only
(B) II only
(C) I and II only
(D) I, II and III
9. A machine price was $1,000 and was carried through a truck. The truck’s fares were $500. The engineers charged $500 for the installation. The cost of the machine is?
(A) $1,000
(B) $1,500
(C) $2,000
(D) $2,500
10. 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
ANSWERS: ACCOUNTING QUIZ
6. (A)
7. (D)
8. (C)
9. (C)
10. (B)


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31. The withdrawal of inventory by the owner for personal use should appear in the trading account as a deduction from
(A) sales
(B) purchases
(C) overdrafts
(D) none of these
32. A company had opening inventory of $200,000. Sales and purchases during the period were of $400,000 and $80,000 respectively. What is the gross profit for the period if the closing inventory was worth $100,000?
(A) $20,000
(B) $120,000
(C) $220,000
(D) $320,000
33. Which from the following costs are included in conversion costs?
(A) Carriage in
(B) Carriage outwards
(C) Commission of selling staff
(D) Supervisor’s wages
34. Goods which originally cost $800 were sold for $1,000. In the accounting equation Net Assets will?
(A) Rise by $1,000
(B) Rise by $200
(C) Fall by $1,000
(D) Fall by $200
35. A debit entry usually represents
(A) Assets and Expenses
(B) Assets and Income
(C) Liabilities and Income
(D) Liabilities and Expenses
ANSWERS: FINANCIAL ACCOUNTING MCQS
31. (B) purchases
32. (C) $220,000
33. (D) Supervisor’s wages
34. (B) Rise by $200
35. (A) Assets and Expenses

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26. A bank overdraft is shown as a/an _____ balance in the bank statement.
(A) debit
(B) credit
(C) credit – debit
(D) none of these
27. Which from the following is included in the cost of purchases?
(A) Abnormal loss
(B) Freight in
(C) Rent of store
(D) Administrative Salaries
28. Cheques issued but not presented, cause the bank statement balance to be ________  the cash book balance.
(A) greater than
(B) less than
(C) equal to
(D) the two statements are irrelevant
29. The capital of a business is $100,000 and the liabilities are $40,000. What are the total assets?
(A) $40,000
(B) $60,000
(C) $100,000
(D) $140,000
30. Any transaction which cannot be recorded in any book of prime entry is recorded in
(A) Cash book
(B) Petty cash book
(C) General journal
(D) Day books
ANSWERS: ACCOUNTING MCQ
26. (A) debit
27. (B) Freight in
28. (A) greater
29. (D) $140,000
30. (C) General journal

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21. Raw materials that are remaining at the end of the reporting period are treated as
(A) liabilities
(B) expenses
(C) fixed assets
(D) current assets
22. The goods that have been sold to the customers are treated as _____ in the financial statements.
(A) inventories
(B) expenses
(C) income
(D) debt
23. The goods that have not been sold to the customers till the end of the reporting period are considered as
(A) inventories
(B) expenses
(C) sales
(D) purchases
24. The selling price of some goods is $1500 and cost to sell the goods is $200. What is the Net Realizable Value (NRV)?
(A) $1000
(B) $1200
(C) $1300
(D) $1500
25. The selling price of some under-process goods is $1500, cost to finally produce the goods is $300, and cost to sell the goods is $200. What is the Net Realizable Value (NRV)?
(A) $1000
(B) $1200
(C) $1300
(D) $1500
ANSWERS: NTS ACCOUNTING MCQS
21. (D) current assets
22. (B) expenses
23. (A) inventories
24. (C) $1300
25. (A) $1000

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16. The expected disposal value of the asset (after deducting disposal costs) at the end of its expected useful life is called
(A) residual value
(B) net book value
(C) depreciation
(D) substance over form
17. The figure that appears in the statement of financial position, after the depreciation, is known as
(A) depreciation
(B) substance over form
(C) residual value
(D) net book value
18. Which from the following asset is NOT depreciated?
I. Advances
II. Land
III. Machinery
(A) I only
(B) II only
(C) I and II
(D) II and III
19. Depreciation is normally charged as
(A) payable
(B) receivable
(C) expenses
(D) advances
20. A company purchases a non-current asset in Year 1 for $90,000. The depreciation charge is $15,000. What net book value would be recorded in financial position statement (or balance sheet) at the end of Year-2?
(A) $75,000
(B) $60,000
(C) $30,000
(D) $15,000
ANSWERS: ACCOUNTING MULTIPLE CHOICE QUESTIONS
16. (A)
17. (D)
18. (C)
19. (C)
20. (B)

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11. The accounting process of allocation cost of intangible assets is called
(A) Amortization
(B) Depletion
(C) Going Concern
(D) Residual Value
12. The process of recording consumption of natural resources (or wasting assets) is called
(A) Amortization
(B) Depletion
(C) Going Concern
(D) Residual Value
13. The concept that the enterprise will continue in a foreseeable future is known as
(A) Amortization
(B) Depletion
(C) Going Concern
(D) Residual Value
14. What from the following is NOT a capital expense?
(A) Purchase of property
(B) Purchase of office equipment
(C) Replacement of a vehicle,
(D) Repair of a vehicle
15. An item of equipment cost $300,000 and has a residual value of $50,000 at the end of its expected useful life of four years. What is the depreciable amount?
(A) $50,000
(B) $250,000
(C) $300,000
(D) $350,000
ANSWERS: ACCOUNTING QUIZZES
11. (A)
12. (B)
13. (C)
14. (D)
15. (B)

Accounting MCQS QUIZ



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1. The main source(s) of Generally Accepted Accounting Principles (GAAP) is/are:
(A) Company Law
(B) Accounting standards
(C) Both A and B
(D) None of these
2. What standards 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
3. The correct form of Accounting equation is
(A) Assets + Liabilities = Equity
(B) Assets – Liabilities = Equity
(C) Assets – Receivable = Equity
(D) Assets + Receivable = Equity
4. A company sold goods worth $5,000 on 5 June and $10,000 on 28 June. The company received the first payment on 25 June and second on 7 July. The company prepared the financial statement on 30 June. What would be the total sale on the financial statement?
(A) $0
(B) $5,000
(C) $10,000
(D) $15,000
5. Advance payments are recognized as
(A) receivable
(B) payable
(C) bad debt
(D) none of these
ANSWERS: ACCOUNTING MCQS
1. (C)
2. (A)
3. (B)
4. (D)
5. (A)

Accounting Multiple Choice Questions (MCQs) Page-1. The following Accounting MCQs are from basics of accounting, financial accounting, and cost accounting. Find answers to the questions at the bottom of the page.

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1. The main source(s) of Generally Accepted Accounting Principles (GAAP) is/are:
(A) Company Law
(B) Accounting standards
(C) Both A and B
(D) None of these
2. What standards 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
3. The correct form of Accounting equation is
(A) Assets + Liabilities = Equity
(B) Assets – Liabilities = Equity
(C) Assets – Receivable = Equity
(D) Assets + Receivable = Equity
4. A company sold goods worth $5,000 on 5 June and $10,000 on 28 June. The company received the first payment on 25 June and second on 7 July. The company prepared the financial statement on 30 June. What would be the total sale on the financial statement?
(A) $0
(B) $5,000
(C) $10,000
(D) $15,000
5. Advance payments are recognized as
(A) receivable
(B) payable
(C) bad debt
(D) none of these
ANSWERS: ACCOUNTING MCQS
1. (C)
2. (A)
3. (B)
4. (D)
5. (A)

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