Mock Test – 20 MCQs
1. Accounting principles are primarily designed to ensure:
A. Profit maximization
B. Standardization and reliability of financial statements
C. Reduction of taxes
D. Investment in stocks
2. Which book records all cash transactions of a business?
A. Journal
B. Ledger
C. Cash Book
D. Trial Balance
3. Depreciation is charged to:
A. Asset Account directly or through Provision for Depreciation
B. Liability Account
C. Revenue Account
D. Capital Account
4. The main purpose of a journal in accounting is:
A. To summarize accounts
B. To record transactions in chronological order
C. To audit accounts
D. To prepare the budget
5. Financial planning involves:
A. Preparing annual financial statements
B. Planning, controlling, and managing financial resources
C. Only cash collection
D. Only investment decisions
6. The AJ&K Public Procurement Rules 2017 are applicable to:
A. Only private companies
B. All public procurement in AJ&K government departments
C. Banking institutions only
D. Educational institutions only
7. Re-appropriation of funds is necessary when:
A. Original budget allocations are sufficient
B. Fund requirements change within the same fiscal year
C. Accounts are reconciled
D. Cash balance is zero
8. The process of verifying records for audit purposes is called:
A. Budgeting
B. Scrutiny of Records
C. Depreciation
D. Ledger posting
9. In sentence structuring, the correct order is:
A. Subject → Verb → Object
B. Object → Verb → Subject
C. Verb → Object → Subject
D. Object → Subject → Verb
10. Which of the following is a basic computer input device?
A. Monitor
B. Keyboard
C. Printer
D. Speaker
11. Adjusting entries are required to:
A. Close accounts
B. Record accrued and prepaid items
C. Prepare trial balance only
D. Record depreciation only
12. A Cash Book serves as:
A. Both a journal and a ledger for cash transactions
B. Only a journal
C. Only a ledger
D. Only for credit transactions
13. Cost accounting helps management in:
A. Calculating profit only
B. Controlling costs and making financial decisions
C. Only investment decisions
D. Compliance with procurement rules
14. Which document is required for pension preparation?
A. Cash Book
B. Pension Documents
C. Journal Ledger
D. Trial Balance
15. AJ&K Public Procurement of Consultancy Services Regulations 2018 focuses on:
A. Hiring of consultants in public projects
B. Internal audits
C. Tax assessment
D. Financial planning
16. Journal Ledger is primarily used for:
A. Tracking business transactions by account
B. Printing reports
C. Tax filing
D. Budget allocation
17. Depreciation is an example of:
A. Capital receipt
B. Expense allocation
C. Liability
D. Revenue collection
18. Grammar usage tests a candidate’s ability in:
A. Financial statements
B. English correctness in sentences
C. Budget preparation
D. Procurement rules
19. Annual Budget preparation involves:
A. Allocation of resources for income and expenditure
B. Only cash collection
C. Writing ledger entries
D. Only preparing depreciation schedules
20. Basic IT knowledge for this syllabus includes:
A. Using accounting software, MS Office, and basic computer operations
B. Advanced programming
C. Network administration only
D. Server management
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