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16. Integrated risk management involves both:

1. A. Insurance and market risk

2. B. Insurance and operational risk

3. C. Insurance and fnancial risk

4. D. Insurance and interest rate risk

17. What is cash discount?

1. A. When payment is made in cash

2. B. When payment is made by cheque

3. C. When purchases are made in bulk

4. D. When payment is made beore due date

18. Which of the following techniques used for evaluating caital ro!ects is not based on

cash flows?

1. A. Pay Back Method

2. B. Discounted Pay Back Method

3. C. Internal ate o eturn

!. D. Accountin" ate o eturn

5. #. $et Present %alue

1. &. I''()I*$+ #A'I,-++

1. A. ancy+ act

2. B. sky+ earth

3. C. ethereal+ real

4. D. dream+ ork

5. #. ater+ ice

1. !. )$A/#+ 0A$1++

1. A. 2ampire+ teeth

2. B. rabbit+ hutch

3. C. snail+ antennae

4. D. action+ fn

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"hoose the lettered word or hrase that is most nearl# oosite in meaning to the word in

caital letters.

1. 3. )IM('A,#D+

1. A. real

2. B. contri2ed

3. C. unassumin"

4. D. alse

$ach question below consists of a related air of words% followed b# five lettered airs of

words. &elect the lettered air that best e'resses a relationshi similar to that e'ressed inthe original air.

1. 4. #$5-M#+ CA,A'-),++

1. A. 2accine+ aller"y

2. B. bacterium+ microbe

3. C. "land+ muscle

4. D. 2ein+ or"an

5. #. neuron+ corpuscle

1. &. 6*$)+ B(''++

1. A. mane+ lion

2. B. attles+ turkey

3. C. antlers+ sta"

4. D. hoos+ horse

5. #. in"s+ ea"le

"hoose the lettered word or hrase that is most nearl# oosite in meaning to the word in

caital letters.

1. !. ,A$)I#$,+

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1. A. temporary

2. B. shinin"

3. C. dull

4. D. permanent

16. (he first stage of the )arketing *esearch rocess is to:

1. A. )elect the sample

2. B. Determine the ob7ecti2es

3. C. Collect data

4. D. De2elop a questionnaire

5. #. Decide on the sources o data

17. (he most basic concet underl#ing marketing is that of ++++++++.

1. A. sellin" and ad2ertisin"

2. B. customer identifcation

3. C. retainin" customers

4. D. human needs

5. #. ulfllin" consumer ants

18. , -rivate rand is another name for:

1. A. Manuacturer Brand

2. B. 1eneric Brand

3. C. 0amily Brand

4. D. )tore Brand

. (he goal/s of human resource management include/s:

1. A. Attractin" an e8ecti2e orkorce2. B. De2elopin" an e8ecti2e orkorce

3. C. Maintainin" an e8ecti2e orkorce

4. D. All o the abo2e

17. 0uman *esource 0iring rocess comrises:

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1. A. ecruitment9 )election and )ociali:ation

2. B. ecruitment9 #lection and )peciali:ation

3. C. ecruitment9 Postin" and Assi"nin" 7ob

4.D. ecruitment9 )election and Postin"

5. #. $one o the abo2e

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

1. A. e8ecti2e

2. B. empoered

3. C. e;cient

4. D. entitled

5. #. ener"i:ed

,2I( 344I"$* / ,""35( 344I"$*

1. Which of the following elements is not related to audit qualit#?

,. due diligence

. indeendence

". audit fees

2. audit cometence

. Which of the following is not internal control consideration?

,. (o e'amine the weaknesses of the s#stem% if an#.

. (o consider the roosition of introducing test checks to be erformed during audit

rocess.

". (o determine e'actl# the e'tent of audit work to be erformed% b# e'amining the

weaknesses of the s#stem% if an# and considering the roosition of test checks.

2. (o form an audit oinion based on the internal control tests.

. What activities would generall# account for a significant roortion of an internal

auditors time?

,. 9erif#ing all invoices before a#ment is made.

. $nsuring the coman# is oerating within budget.

". $valuating the effectiveness and efficienc# of all hases of an entit#s oerations.

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2. "hecking if the coman# is coml#ing with all of its rules and regulations of oeration.

. In the Internal ,uditing &tandards it sa#s: ;Internal auditors should be indeendent of the

activities the# audit. 0ow is this achieved when the auditors are art of the entit#?

,. (hrough their status in the organi

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$. ,verage balance

C. "aital D Eiabilities F ,ssets G?

,. Hero

. >ain

". Eoss

2. &urlus

$. -rofit

1.(he sale of a building is:

,. *evenue receits

. "aital receits

". Income

2. Eoss

$. "aital los

1. 4. PA1#+ B**/++

1. A. sailors+ cre

2. B. petal+

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1. !. C6A$1#+

1. A. alter

2. B. church

3. C. complete

4. D. decide

5. #. a"ree

1=. "hanges in stocks are a result of keeers

1. A. Deliberate decisions by shopkeepers

2. B. De2iations beteen supply and demand

3. C. 0ailure o sellers to sell "oods

4. D. Deliberate decisions by manuactures

16. (he burden of a ta' falls more heavil# on the sellers in a market when

1. A. both supply and demand are elastic

2. B. both supply and demand are inelastic

3. C. demand is inelastic and supply is elastic

4. D. demand is elastic and supply is inelastic

1. &. I''()I*$+ #A'I,-++

1. A. ancy+ act

2. B. sky+ earth

3. C. ethereal+ real

4. D. dream+ ork

5. #. ater+ ice

1. !. )$A/#+ 0A$1++

1. A. 2ampire+ teeth

2. B. rabbit+ hutch

3. C. snail+ antennae

4. D. action+ fn

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"hoose the lettered word or hrase that is most nearl# oosite in meaning to the word in

caital letters.

1. 3. )IM('A,#D+

1. A. real

2. B. contri2ed

3. C. unassumin"

4. D. alse

6. Integrated risk management involves both:

1. A. Insurance and market risk

2. B. Insurance and operational risk

3. C. Insurance and fnancial risk

4. D. Insurance and interest rate risk

17. What is cash discount?

1. A. When payment is made in cash2. B. When payment is made by cheque

3. C. When purchases are made in bulk

4. D. When payment is made beore due date

18. Which of the following techniques used for evaluating caital ro!ects is not based on

cash flows?

1. A. Pay Back Method

2. B. Discounted Pay Back Method

3. C. Internal ate o eturn

4. D. Accountin" ate o eturn

5. #. $et Present %alue

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$ach question below consists of a related air of words% followed b# five lettered airs of

words. &elect the lettered air that best e'resses a relationshi similar to that e'ressed in

the original air.

1. 4. 'I=(ID+ 6-DA('IC)++

1. A. motion+ dynamics

2. B. ater+ hydroponics

3. C. data+ statistics

4. D. music+ eurythmics

"hoose the lettered word or hrase that is most nearl# oosite in meaning to the word in

caital letters.

1. &. P(B'IC+

1. A. ci2ic

2. B. pri2ate

3. C. republic

4. D. lon"

"hoose the word most similar in meaning to the caitali

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"hoose the lettered word or hrase that is most nearl# oosite in meaning to the word in

caital letters.

1. &. PA,IC('A+

1. A. "eneral

2. B. idespread

3. C. di8used

4. D. common

"hoose the word most similar in meaning to the caitali

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1. A. adi@

2. B. Cohart

3. C. Population

4. D. Mid year population

5. #. All o the abo2e

1. 3. ,he ord transormation is closest in meanin" to+

1. A. trend

2. B. e2ent

3. C. chan"e

4. D. custom

1. E. ,he ord ro"ues reers to a type o+

1. A. be2era"e

2. B. person

3. C. book

4. D. co8ee

1=. "hanges in stocks are a result of keeers

1. A. Deliberate decisions by shopkeepers

2. B. De2iations beteen supply and demand

3. C. 0ailure o sellers to sell "oods

4. D. Deliberate decisions by manuactures

16. (he burden of a ta' falls more heavil# on the sellers in a market when

1. A. both supply and demand are elastic

2. B. both supply and demand are inelastic3. C. demand is inelastic and supply is elastic

4. D. demand is elastic and supply is inelastic

NTS Test Preparation Economics Mcqs Paper

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The Balance of payment is understood as:

(a) The balance of amount after paying debt

(b) The balance of income and ependiture in the annual budget

(c) The balance bet!een a nation"s ependiture on imports and its receipts from eports#

(d) None of the abo$e

%# Pinpoint the main ob&ecti$es of 'orld Trade rganiation

('T):

(a) *i a quota for each member country trading in +nternational Mar,et

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

(c) To secure Third 'orld mar,ets for -merican and

European goods

(d) To abolish completely custom duties on items of trade

!ithin member countries

.# The number of family !elfare centres in Pun&ab are:

(a) /01 (b) 231

(c) 4%.1 (d) 4/1.

3# 'hich of the follo!ing statement is not true5

(a) The 'orld Ban, has to affiliates6 the +nternational

7e$elopment -ssociation and the +nternational *inance

8orporation#

(b) The membership of the +M* is the principal condition

for membership of the 'orld Ban,#

(c) The 'orld Ban, pro$ides loans to such countries !hose

balance of payments condition is not fa$ourable

(d) The 'orld Ban, finance all ,inds of capital

infrastructure such as roads and rail!ays6

telecommunications6 seaports and po!er facilities in the

de$eloping countries#

/# +dentify the main functions of +M*:

(a) To pro$ide loans to the members of 9N for

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de$elopment of +ndustrial infra structure

(b) To ma,e foreign echange resources a$ailable for those

countries that !ant to import essential items of food

(c) To ma,e foreign echange resources a$ailable for those

countries facing balance of payments difficulties

(d) None of the abo$e

0# The 9nited Nations celebrated +nternational ;ear of

Shelter for the / (b) 42>?

(c) 4221 (d) 422%

?# The +slamic 7e$elopment Ban, !ould pro$ide half a billion

9S dollars in 8apital to create@(a) Pri$ate Pan +slamic Ban,

(b) +nternational +slamic *oundation for Science and

Technology

(c) Aefugees Aehabilitation *und

(d) None of the abo$e

># The domestic production of crude oil in the country isapproimately (per day)

(a) 336.11 Barrels (b) /?6?11 Barrels

(c) 0/6%11 Barrels (d) ?16111 Barrels

2# The regulations of 'orld Trade rganiation ('T) shall be

enforced from:

(a) 4 anuary %11% (b) 4 anuary %11.

(c) 4 uly %113 (d) 4 anuary %11/

41# The biggest mar,et of Pa,istani eports is:

(a) *rance (b) Saudi -rabia

(c) 9#S#- (d) 9#C#

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44# The biggest mar,et of Pa,istani +mports is:

(a) 9S- (b) 9#C#

(c) Aussia (d) apan4%# The Do$ernment has reduced the rate of profit on National

Sa$ing Schemes primarily for the reason of:

(a) Enhancing the le$el of sa$ing rate

Economics .

(b) 7iscouraging the bloc,age of money in such schemes

(c) To encourage the in$estors to in$est their capital in

acti$e business $entures

(d) To bridge the gap bet!een their profit rate and Ban,"s

mar, up rate on loans

4.# Pa,istan"s domestic demand for petroleum products in

gro!ing annually !ith the percentage of:

(a) . percent (b) / percent

(c) > percent (d) 4/ percent

43# The 'omen"s 7i$ision !as created in the *ederal

Do$ernment in anuary:

(a) 42?3 (b) 42??

(c) 42?2 (d) 42>4

4/# The first 'orld Population 8onference= under the 9nited

Nations !as held in 42?/ at:

(a) Campala (b)Bucharest

(c) Nairobi (d)-n,ara

40# 7ifference bet!een a countrys eports and imports is:

(a) Trade Balance (b) Trade 7eficit

(c) Trade Surplus (d) olume of Trade

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4?# 8ash crop is the crop:

(a) 'hich gi$es high profit to the farmers

(b) 'hich is gro!n only for sale

(c) 'hich is gro!n after ta,ing 8ash loan from Ban,s

(d) None of the abo$e one

4># The lo!ering of the $alue of a currency in the international

mar,et or against specific other currencies6 !hich ma,es

eports cheaper and imports epensi$e is called:

(a) 7e$aluation (b) Ae$olution

(c)+nflation (d) 7eflation

42# The $alue of the output of all goods and ser$ices produced

!ithin a nation"s borders6 normally gi$en as a total for theyear# +t thus includes the production of foreign o!ned firms

!ithin the country6 but ecludes the income from

domestically o!ned firms located abroad6 is called:

(a) Dross National Product

3 Deneral Cno!ledge @ M8Fs

(b) Dross

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FG% +n accounting an Economic e$ent is referred to as:

-) 8ash

B) Ban, statement

8) Transaction

7) Echange of money

FG. +dentify the correct sequence of accounting process

-) 8ommunicatingHAecordingH+dentifying

B) AecordingH8ommunicatingH+dentifying

8) +dentifyingHcommunicatingHrecording

7) +dentifyingHrecordingHcommunicating

FG3 Boo,,eeping mainly concerns !ith !hich part of accounting process5

-) -nalysing

B) Preparing financial statements

8) Aecording financial information

7) -uditing the boo,s of accounts

FG/ *inancial accounting pro$ides financial information to all of the follo!ing eternal users ecept:

-) Do$ernment agencies

B) in$estors

8) 8reditors

7) Managers

FG0 *or !hich step of accounting process the accountants of business entity prepare financial

statements5

-) +dentification of economic e$ent

B) 8ommunication of financial information

8) Aecording financial information

7) Ma,ing decisions about business

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FG? Ceeping the log of financial information in boo,s of original entries is called

-) Aecording

B) summariing

8) Drouping

7) Processing

FG> -uditing is !hat5

-) Aeporting the financial information

B) Eamination of financial statements

8) Preparation financial statements

7) maintaining the ledger records

FG2 'hich of the follo!ing is the eternal user of financial statements5

-) Manager of the business

B) 8E of the business

8) 8reditor of the business

7) 8ontroller of the business

FG41 'hich of the follo!ing is the internal user of financial statements5

-) 8reditor of the business

B) Do$ernment agency

8) Shareholder of the business

7) Manager of the business

B)

8)

FG44IIIIIIIII is the first phase of accounting cycle

-) +dentifying an economic e$ent or transaction

B) Preparing &ournals

8) Posting entries to ledger accounts

7) Ma,ing decisions about business

4%)

FG4% *inancial statements differ from management account because

-) They are mainly prepared for eternal users of financial information

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B) They are more comple and hard to prepare

8) The are the summary of accounting data

7) The are prepared on basis of actual concept

FG4. IIIIIIII is a separate legal entity that Total capital can be di$ided in many shares

-) Partnership

B) Sole proprietorship

8) 8ompany

7) NonGprofit organiation

FG43 -n asset posses !hich of the follo!ing5

-) *uture economic benefits for the business

B) -ll ,ind of benefits for the business

8) Epenses for the business

7) Merits and 7emerits for the business

FG4/ Jiabilities are !hich of the follo!ing5

-) Aesources

B) bligations

8) *uture benefits

7) Epenses

FG40 IIIIIIII is the gross inflo! of economic benefits

-) -ssets

B) Jiabilities

8) +ncome

7) Epenses

FG4? The gross decrease in economic benefits for the business are !hat5

-) Epenses

B) bligations

8) 8reditors

7) +ncome or gain

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FG4> -n asset must be IIIIIII by the business to be sho!n as an asset in its balance sheet=

-) Possessed

B) !ned

8) 8ontrolled

7) 9sed

FG42 Jiability are arisen from !hich of the follo!ing e$ents5

-) Present e$ent

B) *uture e$ent

8) Past e$ent

7) Non of them

FG%1 'hich of the follo!ing can be considered as the most important phase of accounting cycle andit is the primarily ob&ecti$e of financial accounting5

-) +dentifying transactions

B) Preparing T -ccounts=

8) Preparing financial statements

7) Preparing trial balances

FG%4 'hich is the most important characteristic that all assets of a business ha$e5-) Jong life of assets

B) alue of assets

8) +ntangible nature of assets

7) *uture economic benefits

FG%% 'hat is the basic accounting equation5

-) 8apitalKJiabilitiesL-ssets

B) -ssetsK liabilities L8apital

8) 8apitalKassetsLliabilities

7) JiabilitiesK8apital

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FG%. 'hich of the follo!ing is a liability5

-) 8ash

B) Equipment

8) 7ebtors

7) 8reditors

FG%3 'hat is equity5

-) 8ash from the business

B) liability of a business

8) !ner"s claim on total assets

7) !ner"s claim on total liabilities

FG%/ +dentify the asset from the follo!ing

-) 8ash and cash equi$alent

B) 8reditors

8) Notes payable

7) Ban, loan

FG%0 IIIIIII the !ithdra!al of cash and goods by the o!ner of the busienss for hisher personal

use

-) 7epreciation

B) 7ra!ings

8) utflo! of cash

7) -ppreciation

FG%? Net loss occurs !hen-) Epenses are greater than +ncome

B) Epenses are less than +ncome

8) EpensesL+ncome

7) Jiabilities are greater than income

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FG%> 7ouble entry implies that

-) Aecording entries in &ournal

B) Aecoding entries in Jedger account

8) Aecording t!o aspects of e$ery transaction7) Aecording e$ery transaction in boo,s

FG%2 +dentify the nominal account

-) Machinery account

B) Building account

8) 8reditors account

7) Aent epenses account

FG.1 'hich of the follo!ing accounts can be classified as a real account5

-) Aent epenses account

B) Aent income account

8) insurance epenses account

7) 8ash account

-NS'EAS: