Preparing for the PPSC Deputy Accountant examination? The best way to improve your preparation is to practice multiple-choice questions, understand the concepts behind each answer, and identify your weak areas before the actual examination.
On deputyaccountant.com, this PPSC Deputy Accountant Mock Test provides original practice MCQs covering accounting, bookkeeping, financial statements, auditing, taxation, business mathematics, and general knowledge. Each question includes the correct answer and a clear explanation to help you prepare more effectively.
Important: These are practice questions created for preparation purposes. They are not official PPSC questions, and the exact syllabus and paper pattern should be checked against the relevant official advertisement or syllabus.
PPSC Deputy Accountant Mock Test – Key Features
- Original practice MCQs with four options.
- Correct answers with easy-to-understand explanations.
- Financial accounting and bookkeeping practice.
- Questions on bank reconciliation and financial statements.
- Basic auditing, taxation, and business mathematics.
- An interactive quiz to test your knowledge.
- Suitable for revision and self-assessment.
How to Prepare for the PPSC Deputy Accountant Test
A structured study plan can help you prepare more efficiently.
- Revise accounting fundamentals: Understand debit and credit rules, journal entries, ledgers, and trial balances.
- Practice financial accounting: Study bank reconciliation statements, depreciation, inventory valuation, and financial statements.
- Review auditing concepts: Learn the purpose of audits, internal controls, audit evidence, and basic auditing procedures.
- Study taxation and business mathematics: Review basic tax concepts, percentages, ratios, profit and loss, and simple interest.
- Practice timed MCQs: Attempt questions without checking the answers first.
- Review your mistakes: Read each explanation and revise the relevant topic.
Always prioritize the subjects and weightage mentioned in the applicable official PPSC syllabus.
PPSC Deputy Accountant Practice MCQs with Answers
Question 1: Basic Accounting Equation
Which of the following represents the basic accounting equation?
A. Assets = Liabilities + Capital
B. Assets = Revenue − Expenses
C. Capital = Assets + Liabilities
D. Liabilities = Assets + Revenue
Correct Answer: A. Assets = Liabilities + Capital
Explanation: The accounting equation states that total assets are equal to total liabilities plus owner’s equity. It forms the foundation of double-entry accounting.
Question 2: Journal Entry for Cash Sales
A business sells goods for Rs. 20,000 in cash. Which account should be debited?
A. Sales Account
B. Cash Account
C. Purchases Account
D. Capital Account
Correct Answer: B. Cash Account
Explanation: Cash increases when goods are sold for cash, so the Cash Account is debited. Sales revenue increases and is credited. The entry is:
- Debit: Cash Account — Rs. 20,000
- Credit: Sales Account — Rs. 20,000
This entry assumes a cash sale recorded at the selling price, excluding any separately accounted-for tax.
Question 3: Purpose of a Trial Balance
What is the primary purpose of preparing a trial balance?
A. To calculate net profit only
B. To verify the arithmetical equality of ledger debit and credit balances
C. To determine the market value of assets
D. To calculate income tax payable
Correct Answer: B. To verify the arithmetical equality of ledger debit and credit balances
Explanation: A trial balance lists ledger balances to check whether total debits equal total credits. However, agreement does not guarantee that every transaction has been recorded correctly.
Question 4: Bank Reconciliation Statement
A bank reconciliation statement is prepared to reconcile:
A. Sales and purchases
B. Assets and liabilities
C. The bank balance in the cash book and the bank statement balance
D. Capital and drawings
Correct Answer: C. The bank balance in the cash book and the bank statement balance
Explanation: Differences may arise because of outstanding cheques, deposits in transit, bank charges, direct deposits, or errors. A bank reconciliation helps identify and explain these differences.
Question 5: Depreciation
A machine costs Rs. 100,000, has a residual value of Rs. 10,000, and an estimated useful life of five years. What is its annual depreciation under the straight-line method?
A. Rs. 10,000
B. Rs. 18,000
C. Rs. 20,000
D. Rs. 22,000
Correct Answer: B. Rs. 18,000
Explanation: Under the straight-line method:
Annual depreciation = (Cost − Residual value) ÷ Useful life
= (Rs. 100,000 − Rs. 10,000) ÷ 5
= Rs. 90,000 ÷ 5
= Rs. 18,000 per year.
Question 6: Balance Sheet
Which financial statement reports an entity’s assets, liabilities, and equity at a particular date?
A. Income Statement
B. Cash Flow Statement
C. Balance Sheet
D. Statement of Changes in Sales
Correct Answer: C. Balance Sheet
Explanation: The balance sheet, also known as the statement of financial position, presents assets, liabilities, and equity at a specific date.
Question 7: Internal Control
What is the main purpose of internal control in an organization?
A. To eliminate every business risk
B. To support reliable reporting, safeguard assets, and improve compliance and operations
C. To guarantee that the business will earn a profit
D. To replace all external audits
Correct Answer: B. To support reliable reporting, safeguard assets, and improve compliance and operations
Explanation: Internal controls help reduce risks, protect organizational resources, improve the reliability of financial information, and support compliance. They provide reasonable assurance rather than an absolute guarantee.
Question 8: Current Ratio
A business has current assets of Rs. 150,000 and current liabilities of Rs. 75,000. What is its current ratio?
A. 0.5:1
B. 1:1
C. 2:1
D. 3:1
Correct Answer: C. 2:1
Explanation: The current ratio is calculated as:
Current Ratio = Current Assets ÷ Current Liabilities
= 150,000 ÷ 75,000
= 2:1
This ratio is one indicator of a business’s short-term liquidity.
Question 9: Auditing
Which of the following is an important objective of an independent financial statement audit?
A. To guarantee future profitability
B. To prepare every transaction in the accounting records
C. To obtain reasonable assurance that the financial statements are free from material misstatement
D. To guarantee that no fraud has occurred
Correct Answer: C. To obtain reasonable assurance that the financial statements are free from material misstatement
Explanation: An independent audit provides reasonable assurance and results in an audit opinion. It does not guarantee that every error or instance of fraud will be detected.
Question 10: Business Mathematics
A product costs Rs. 800 and is sold for Rs. 1,000. What is the profit percentage on cost?
A. 20%
B. 25%
C. 30%
D. 40%
Correct Answer: B. 25%
Explanation:
Profit = Selling Price − Cost Price
= Rs. 1,000 − Rs. 800 = Rs. 200
Profit Percentage = (Profit ÷ Cost Price) × 100
= (200 ÷ 800) × 100
= 25%
Remember that profit percentage on cost is different from profit margin on selling price.
Why Are Explanations Important in PPSC MCQ Preparation?
Practicing MCQs without reviewing the reasoning behind each answer can limit your progress. Explanations help you understand accounting rules, remember important formulas, and avoid repeating mistakes.
For example, understanding why cash is debited in a cash sale is more useful than memorizing the answer to one question. The same accounting principle can then be applied to many different transactions.
Read More About: PPSC Deputy Accountant Solved Paper
Frequently Asked Questions (FAQs)
1. What is the PPSC Deputy Accountant Mock Test?
It is a practice resource containing multiple-choice questions designed to help candidates revise accounting and related subjects for the Deputy Accountant recruitment examination.
2. Are these official PPSC past-paper questions?
No. The questions in this article are original practice questions prepared for educational purposes. They should not be represented as official past-paper questions.
3. Which subjects should I prepare?
Begin with the subjects specified in the relevant official syllabus. Depending on the advertised post and syllabus, useful preparation areas may include accounting, bookkeeping, auditing, taxation, business mathematics, computer knowledge, and general knowledge.
4. How can I improve my MCQ score?
Practice regularly, use timed quizzes, review incorrect answers, and revisit the underlying concepts. Track your performance by subject rather than focusing only on your total score.
5. Where can I find more accounting practice material?
Visit deputyaccountant.com for additional accounting notes, solved questions, mock tests, and educational resources as they become available.
Final Words
Consistent practice and a clear understanding of accounting concepts are essential for effective Deputy Accountant exam preparation. Use these MCQs as a starting point, revise the explanations, and continue practicing with questions aligned with the official syllabus.
Keep practicing, strengthen your accounting fundamentals, and prepare with confidence.
For more accounting study materials and exam preparation resources, visit deputyaccountant.com.