Identify sales price variance if actual units sold and budgeted units sold are 45,000 units and 55,000 units respectively. Actual sales price per unit, standard profit per unit and standard sales per unit are Rs. 215, Rs. 39 and Rs. 205 respectively.

• A) Rs. 390,000 favorable
• B) Rs. 450,000 favorable
• C) Rs. 450,000 adverse
• D) Rs. 390,000 adverse

What is the situation of cash balance for the month of January if ABC Company must maintain cash balance of Rs. 12,000 and its revenue and expenses for the month of January are; Rs. 15,000 and 10,000 respectively?

• A) Rs. 7,000 deficit
• B) Rs. 5,000 deficit
• C) Rs. 5,000 surplus
• D) Rs. 7,000 surplus

Following information has been extracted from the books of ARS & Co. If total current assets and total current liabilities are of Rs. 500,000 and Rs 400,000
Required: Identify the amount of Net Working Capital if management of Company wants to add 10% to estimated figure of net working capital to account for contingencies.

• A) Rs. 500,000
• B) Rs. 110,000
• C) Rs. 400,000
• D) Rs. 100,000

Length of operating cycle can be reduced by:

• A) Prompt invoicing of all dispatches
• B) Reduction in finished goods stock holding
• C) Increasing raw material stock holding
• D) Delays in settlement discounts

In which of the given situation profitability of business will be increased?

• A) There is no relation between liquidity and profitability.
• B) If working capital is increased.
• C) If working capital remains constant.
• D) If working capital is decreased.

Identify the payable age if payables, Receivable age and purchases of Al- Noor Company are of Rs. 55,000, 42 days and Rs. 300,000 respectively. Also it is assumed that there are 365 days.

• A) 162 days
• B) 42 days
• C) 67 days
• D) 5 days

What is closing cash balance of ABC Company if net cash outflow and opening cash balance are of Rs. 17,000 and Rs. 50,000 respectively?

• A) Rs. (33,000)
• B) Rs. 33,000
• C) Rs. (67,000)
• D) Rs. 67,000

Cash dividend is component of which of the following?

• A) None of the given options
• B) Cash flow from Investing Activities
• C) Cash flow from financing Activities
• D) Cash flow from operating Activities

How “decreased in creditors” is treated in cash flow statement as per International Accounting Standard-7?

• A) It is treated as cash inflow in operating activity.
• B) It is treated as cash outflow in operating activity.
• C) It is treated as cash inflow in financing activity
• D) It is treated as cash outflow in financing activity.

Identify the Re-order level if there are 2,000 packets of paper are used in a manufacturing concern each year of 48 working weeks.

• A) None of the given option
• B) 500 packets
• C) 127 packets
• D) 154 packets

Economic order Quantity (EOQ) of ABC Company is 700 units, ordering cost of stock for one year is of Rs. 25,650 and demand for the year is of 70,000 units.
Required: Identify the number of orders should place in a year.

• A) 70,000 orders
• B) 100 orders
• C) Required more information to identify number of orders
• D) 700 orders

Following information has been extracted from the books of A & Co. to find the Economic Order Quantity (EOQ). Cost of placing an order Rs. 15 per order; Annual demand in units 10,000 units and Cost of holding one unit per annum Rs. 50 per annum.

• A) Required more information to find the value of EOQ
• B) 37 units
• C) 77 units
• D) 15 units

Which of the following component is subtracted while calculating the cost of factoring the accounts receivable?

• A) Cost of factoring on advances
• B) Factoring service fee
• C) Credit control savings
• D) None of the given options

Average days of inventory + average days of receivable - Average days of payable =?

• A) Business cycle
• B) Operating cycle
• C) Trade cycle
• D) Cash conversion cycle

In which of the given situation profitability of business will be decreased?

• A) If working capital is decreased.
• B) If working capital is increased.
• C) If working capital remains constant.
• D) There is no relation between liquidity and profitability.

Which of the following is not sources of Internal Control on Cash Receipts.

• A) Proceeds from the sale of non- current assets
• B) Collections on account from customers
• C) Payment to creditors
• D) Cash sales

Following information has been extracted from the books of AHB to find the Economic Order Quantity (EOQ). Cost of placing an order Rs. 25 per order; Annual demand in units 20,000 units and Cost of holding one unit per annum Rs. 70 per annum.

• A) 335 units
• B) 85 units
• C) 120 units
• D) Required more information to find the value of EOQ

How many days are required for inventory conversion of XYZ Company if it has average inventory, cost of goods sold and net profit are of Rs. 200,000; Rs. 800,000 and Rs. 100,000 respectively. Also it is assumed that there are 365 days.

• A) 46 days
• B) 91 days
• C) 183 days
• D) 104 days

Which of the following is (are) objective(s) of Internal control process?

• A) Reliability of financial reporting
• B) All of the given options
• C) Effectiveness and efficiency of operations
• D) Compliance with laws and regulations

Economic order quantity model decides the order size where total ordering costs _____________ carrying costs.

• A) Greater than
• B) Less than
• C) Greater than and equal to
• D) Equal to