COMMERCE MCQS

1. Which of the following business type has longest life time?

a) Sole proprietorship b) Partnership c) Joint stock company d) All of the above

2. Election of the Board of Directors is done by Shareholders.

a) Through special resolution b) In annual general meeting c) In special meeting d) In
statutory meeting

3. Which of the following business type, has to pay double taxes to the government?
a) Sole proprietorship b) Partnership c) Joint stock company d) Cooperative Societies

4. ______ includes the rules and regulations, necessary to manage the internal affairs of the
company.
a) Memorandum of Association b) Article of Association c) Prospectus d) All of the
above

5. General information like appointment, election and power of directors, voting rights and transfer
of shares mention in________.
a) Charter of Company b) Article of Association c) Prospectus d) None of these

6. To call the extraordinary meeting, how many days’ notice is required?

a) 21 days b) 15 days c) 07 days d) 30 days

7. According to section 305 of Companies Ordinance, a company may wound up by court under
which of the following circumstances:
a) Statutory Declaration b) Fails to submit statutory report c) Expiry of Period d)
Appointment of Liquidators

8. Which is the following is the source of acquiring of redeemable capital?

a) Modarba Certificate b) Debentures c) Participation term certificate d) All of the above

9. Normally some part of Capital is kept for the payment of debts at the time of winding up, is
called:
a) Reserve Capital b) Un-Issued Capital c) Un-Called up capital d) All of the above

10. The following person cannot make a petition to the court to get an order of winding up of a
company.
a) Petition by Debtor b) Petition by Creditor c) Petition by Contributory d) All of the
above

11. ________ is the process of motivating others to work to meet specific objectives.
a) Leadership b) Motivation c) Free rein style d) Democratic style

12. Which of the following represents the set of procedures involving both managers and
subordinates in setting goals and evaluating progress?
 COMMERCE MCQS

a) Participative Management and Empowerment b) Management by Objective (MBO) c)

Reinforcement/Behavior Modification Theory d) None of the above

13. The internal environment consists of the insiders forces that influence marketing strategy and
decision making is/are as follows:
a) Organizational Policies b) Product Policies c) Management Structure d) All of these

14. A specific communication task to be accomplished with a specific target audience during a
specific period of time is called as:
a) Marketing Mix b) Advertising objective c) Market Segmentation d) Marketing
Process

15. The primary objective of a business is to:

a) Help its employee b) Produce more and more c) Earn maximum profit

16. Business covers only:

a) Economics activity b) Non-economic activities c) Social-service activities

17. A partnership is formed with:

a) Contractual relationship b) Relationship among persons c) The direction of government

18. When an organization structure is treated a separated, legal entity apart from its owner, it is
consider to be:
a) A partnership b) A company c) A proprietorship d) A syndicate

19. The scope of company’s business can be seen from:

a) Article of Association b) Memorandum of Association c) Prospectus d) Statement
in lieu of Prospectus

20. Article of Association are subordinates to:

a) Companies Ordinance only b) Memorandum of Association only c) Both (a) & (b)

21. Investment is most risky in:

a) Equity shares b) Preference shares c) Debenture d) Both (a) and (b)

22. What is the minimum number of directors in public company according to the companies’
ordinance?
a) Two b) Three c) Four d) Seven

23. Members of the board of director of company may be personally liable for:
a) Fraud b) Gross negligence c) Use of company’s assets d) All of the above

24. The primary motive of cooperative movements is:

a) To earn profit b) Increase production c) To serve members d) All of the above
 COMMERCE MCQS

25. A Cooperative society is registered under the Cooperative Societies Act of:
a) 1925 b) 1935 c) 1956 d) 2000

26. The basic purpose of business combination is:

a) To provide service to the community b) To sell the goods at competitive prices c) To
reap profit by eliminating competition d) All of the above

27. The promotion strategy begins with the decision to find:

a) Investor b) Compete c) Branding of goods d) None of these

28. Which one of the following elements is not in the marketing mix:
a) Price b) Product c) Storage and d) Promotion

29. A Co-operative is:

a) A voluntary organization b) formed by the Government c) Compulsory for consumer
to join d) None of the above

30. A stock exchange is mainly concerned with:

a) Providing finance for importers b) Raising new capital for the industry c) Dealing in
issued securities d) Providing finance for government

31. The most important advertising medium in money terms is:

a) Newspapers b) Magazines c) Television d) Direct mail

32. Advertising has long been criticized for contributing to:

a) Economic waste b) Adding to the cost of product c) Encouraging monopoly d) All
of the above

33. Physical distribution is a channel to make availability of ______ from producer to consumer:
a) Finish goods b) Work in process c) Raw material d) All of the above

34. The actors and forces outside marketing that effect marketing management’s ability to build and
maintain successful relationship with target market:
a) Marketing environment b) Market segmentation c) Marketing mix d) Market
penetration

35. Advertising strategies often depended on the product life cycle stage, Example in case of
introductory stage, which of the following strategy is used:
a) Persuasive advertising b) Comparative advertising c) Informative advertising d)
Reminder advertising e) None of the above
 COMMERCE MCQS

36. _______ includes rental or mortgage payments, insurance, and wages. Other cost includes
material handling and inventory control:
a) Warehousing cost b) Transportation cost c) Distribution cost d) Manufacturing cost

37. ________ is the planning , organizing, directing and controlling of all the activities needed to get
high-quality goods and services into the market place:
a) Total quality management (TQM) b) Promotion strategy c) sales promotion d)
Management by objective (MBO)

38. A promotional tool in which information about company or product is transmitted by general
mass media, which is free, but you have title or no control of the content and delivery:
a) Public relationship b) Trade Promotion c) Publicity d) Consumer Promotion

39. An agreement between two parties in which one party possess the rights to the other party is:
a) Partnership b) Strategic Alliance c) Joint venture d) Franchising

40. Brief history, Auditor’s report, shareholders’ equity and liabilities, share capital, etc are mention
in which of the document?
a) Charter of Company b) Article of Association c) Prospectus d) None of the above

Audit Portion
1. The word Audit is derived from Latin word “ audire ” which means:
a) To hear b) To detect fraud c) To check d) All of the above

2. Auditing refers to:

a) Preparation and checking of accounts b) Examination of accounts of business units only
c) Examination of accounts by professional accountants d) Checking of vouchers

3. Main object of auditing is:

a) Detection of errors b) To find out whether P & L A/c and B/S show true and fair state of
affairs c) Detection fraud d) Detection and prevention of frauds and errors
4. A continuous audit is specially needed for:
a) Any trading concern b) Smaller concern c) Banking companies d) Any
manufacturing concern

5. Alteration of a figure after audit is a limitation of:

a) Final audit b) Continuous audit c) Interim audit d) None of these

6. System audit implies:

a) Systematic examination of accounts b) Audit undertaken to improve auditing system c)
Enquiring accounting and control system d) Checking the performance of management

7. Institute of Chartered Accountant of Pakistan was established in:

 COMMERCE MCQS

a) 1956 b) 1949 c) 1956 d) 1961

8. Primary objective of carrying audit is to:

a) Impose moral check on employees b) Submit report to shareholders c) Express an
opinion of on financial statements d) All of the above

9. Auditor is responsible for:

a) Preparation of the accounts b) Expression of an opinion c) preparation and
examination of the accounts d) None of these

10. Audit starts where:

a) Accountancy’s work ends b) Book-keeping ends c) None of the above d) Both (a)
and (b)

11. The object of internal audit is:

a) To prevent errors and fraud b) To detect errors and frauds c) To improve financial
control d) All of the above

12. Auditor should be dutiful like a:

a) A watch dog b) A blood hound c) A detective d) An insurer

13. For the forfeiture of shares, the auditor should check that it is permitted:
a) By Memorandum of Association b) By Article of Association c) Under Companies
Ordinance 1984 d) None of the above

14. Working papers are property of:

a) Client b) Registrar c) Auditor d) Corporate law authority

15. The letter issued by the auditor to his client describing the weakness in the system observed
during his audit is referred to as:
a) Representation letter b) Management letter c) Audit Engagement letter d) None of
these

16. Dissolution of partnership means:

a) Complete breakdown of the relation of partnership between all the partners
b) Only a change in the relation of the partners
c) Stopping the business of the firm for sometime
d) Stopping the business permanently

17. A promissory note is a document in writing containing:

a) A conditional promise to pay b) A conditional order to pay c) An unconditional promise
to pay d) An unconditional order to pay

18. A promissory note or bill of exchange or cheque is an inland instrument if:

 COMMERCE MCQS

a) Drawn in Pakistan and payable outside Pakistan b) Drawn upon any person resident in
Pakistan c) Drawn and payable in Pakistan d) Drawn and payable outside Pakistan

19. If a promissory note falls due on 14th August which is public holiday, it is deemed to be due on:
a) 13th August b) 14th August c) 15th August d) 16th August

20. A promissory note and a cheque are dishonored by:

a) Non-payment only b) By non-acceptance only c) By non-acceptance or non-payment
d) All of the above

Accounting Portion

1. A proper and fair planning of expenditure helps us to ensure proper use of:
a) Liabilities b) Income c) Expense d) Assets

2. _____ Accounts have their existence even after close of accounting period:
a) Nominal accounts b) Real accounts c) Personal accounts d) Permanent
account

3. Double entry system is compulsory for recording transaction in….

a) Journal b) Ledger c) Trail balance d) Balance sheet

4. The title given to classification of information in Accounting system is called as:

a) Account b) Journal c) Ledger d) None of them

5. The term imprest system is used in the relation to…

a) Purchase book b) Sales book c) Cash book d) Petty cash book

6. Cash book maintain record about:

a) All receipts only b) All payment only c) All receipts and payments d) All
types of purchase and sales

7. In business concern, cash balance is a very important element of its:

a) Financial Statement b) Administration condition c) Managerial condition d)
Marketing condition

8. Disagreement in balances may arise owing to mistake or mistakes in the:

 COMMERCE MCQS

a) Cash book only b) Bank statement c) Cash book or Bank statement d) Bank
column of the cash book only

9. The excess of over current assets over short term liability is known as:
a) Capital b) Working capital c) Current capital d) None of these

10. Revenue from sources other than principle activities of the business is called:
a) Income b) Profit c) Other income d) All of the above

11. A balance in unearned rent at the end of period represents:

a) An assets b) An expense c) A liability d) A capital

12. The amount reserved for doubtful receivable:

a) Doubtful debts b) Bad debts c) Provision for bad debts

13. The balance sheet reveals:

a) Resources and equities for the period of time b) Earning of the firm for of a period of
time c) Resource and equities for the point of time

14. In order to facilitate the adjusting entries, the accountant uses informal records called as…
a) Ledger b) Worksheet c) Special journal d) None of the above

15. The balances of the accounts appearing in first two column of the work sheet are obtained
from…
a) Trail balance b) Ledger c) Special journal d) All of the above

16. Loss obtained by the business is written in work sheet on:

a) Assets sides b) Liability side c) None of the above

17. Any expenditure which is incurred again and again is a:

a) Capital expenditure b) Future expenditure c) Deferred expenditure d)
Revenue expenditure

18. Omission of a transaction from a subsidiary record affect:

a) One account b) Two account c) Three account d) Four account

19. A segment of the business that generates both revenue and cost is called:
a) Profit center b) Cost center c) Cost driver d) All of these e) None of these

20. Which one of the following is not considered the permanent part of the accounting record:
a) Journal b) Trail Balance c) Balance Sheet d) Final accounts
 COMMERCE MCQS

Statistics MCQs
1. The tendency of the observation to cluster in the central part of the data set is_____.
a) Frequency b) Sturges rule c) Central tendency

2. Central tendency is also known as.

a) Average b) Measure of location c) Measure of position d) All of the above

3. The measure of central tendency or location is generally known as.

a) Ogive b) Frequency c) Average

4. Average is also called.

a) Location b) Position c) Arithmetic mean

5. The term “Average “has been traced to the time of______.

a) Pythagoras b) Al khawarzami c) Aien Stien

6. Sample is a word of_______.

a) Latin word b) Greek word c) English word

7. Population is a______ word.

a) Latin word b) Greek word c) English word

8. Average is use often for between data sets.

a) Similarities b) Group c) Comparison

9. Generally statistics considered to be a subject that deals with,

a) Percentage ,charts ,average and tables
b) Percentage ,probability ,and science, art
c) Average, qualitative ,data, quantitative data

10. Some people thinks that statistics consists of______,______,____of large amount of data,
a) Planning ,organizing ,controlling
b) Rules ,methods, techniques
c) Analysis, result ,observation

11. Statistics is the subject that making inferences about the …….. Information.
a) Population on the basis of sample information
b) Sample on the basis of population information
c) Analysis and observation on the basis of information

12. The subject that making inferences about particular phenomenon on the basis of population not
sample called.
a) Statistics b) Parameter c) Equation
 COMMERCE MCQS

13. The word statistics comes from the Latin word,

a) Latino b) statuary c) status d) stare

14. The word “Statistics” comes from Latin word status which means,
a) Desire of political economy b) Political status c) Politician

15. “Political state” means

a) Useful to District b) Useful to continent c) Useful to state

16. The section of the table that contains the column caption called…
a) Row caption b) Box head c) Column caption

17. The section of the row the contain row caption called…
a) Stub b) Box head c) Row caption

18. Explanatory notes incorporated in the table beneath the title and below the body is called…
a) Foot notes b) Prefatory notes c) both a & b

19. _____ are used to clarify anything in the table by giving a fuller description…
a) Foot note b) Head c) Title

20. _____ should be placed immediately below the bottom line of table…
a) Source note b) head box c) footnotes