HPSC PGT Commerce Screening Test 2024

HPSC Commerce Screening Test – 2024

Financial Accounting

1. An accounting information system processes financial transactions and events based on —-
(a) Governing Principles
(b) Management Principles
(c) Accepted Principles
(d) Generally accepted account principles
2. Sold goods worth list price of Rs. 8,000 at 10% trade discount and 2 % cash discount. Only 25% o received at the time of transaction. The amount posted to discount account will be;
(a) Rs. 40 on Credit side
(b) Rs. 144 on Credit side
(c) Rs. 144 on Debit side
(d) Rs. 36 on Debit side
3. A machine was purchased in Bihar. During transit the machine was damaged and the cost of repair incurred is Rs. 20000. This expense is treated as;
(a) Capital Expense
(b) Revenue Expense
(c) Deferred Revenue Expense
(d) None of these
4. A machine is purchased for Rs. 10,000 which was wrongly recorded in purchased account. Due to this error;
(a) Trail Balance will show difference of Rs. 10,000.
(b) Trail Balance will not show any difference.
(c) Trail Balance will show the difference of Rs. 20,000
(d) Trail Balance will show a difference of Rs.5,000.
5. Original cost of an asset is Rs. 1,26,000; Salvage value is Rs. 6,000; Useful life is 6 years. The rate of depreciation under Straight Line Method (SLM) will be;
(a) 15.87%
(b) 16.67%
(c) 15.50%
(d) 16.56%
6. The Father of Double Entry System Lucas Paciali was from;
(a) Rome
(b) Venice City
(c) Burlington
(d) Washington D.C.
7. Unfavourable Bank Balance means;
(a) Credit balance in the cash book
(b) Credit balance in the pass book
(c) Debit balance in the cash book
(d) Favourable balance in the cash book
8. Suspense Account in the trial balance will be entered in the;
(a) Manufacturing A/c
(b) Trading A/c
(c) Profit & Loss A/c
(d) Balance Sheet
9. At the time of firm’s dissolution, Balance of General Reserve shown in the Balance sheet is credited to;
(a) Realisation Account
(b) Creditor’s Account
(c) Partner’s Capital Account
(d) Profit & Loss Account
10. Balance sheet provides information about the financial position of the enterprise
(a) At a point of time
(b) Over a period of time
(c) For a period of time
(d) None of the above
11. Cost of Goods Sold Rs. 1,50,000
Closing Stock Rs. 40,000
Opening Stock Rs. 60,000
Amount of Purchase will be;
(a) Rs. 1,30,000
(b) Rs. 1,70,000
(c) Rs. 50,000
(d) Rs. 80,000
12. Overdraft as per cash book is Rs. 10,000. Cheque deposited but not credited Rs. 2,500. Cheque issued but not encashed Rs. 3,500. What is the balance as per Pass Book?
(a) Balance Rs. 9,000
(b) Overdraft Rs. 9,000
(c) Overdraft Rs. 11,000
(d) Balance Rs. 11,000
13. A, B and C are partners sharing profit in the ratio of l/2: l/3: l/6. B retires and his share is taken by ‘A’ and ‘C’ in the ratio of 5:3. Calculate the new ratio;
(a) 16 : 6
(b) 17 : 8
(c) 17 : 7
(d) 16 : 10
14. The purchase value of assets over its serviceable life is categorised as:
(a) Appreciated Liabilities
(b) Appreciated Assets
(c) Depreciation
(d) Appreciation
15. Goods taken away by the proprietor from business for his personal use will be recorded in;
(a) Purchase Book
(b) Sales Book
(c) Purchase Return Book
(d) Journal Proper
16. Providing depreciation on fixed asset is in accordance with which of the following principles/concepts?
(i) Going Concern Concept
(ii) Matching Concept
(iii) Materiality
(a) (i) and (ii)
(b) (ii) and (iii)
(c) (i) and (iii)
(d) (i), (ii) and (iii)
17. Expenditures which are revenue in nature but the benefit of which is likely to be derived over a number of years, are called;
(a) Capital Expenditures
(b) Revenue Expenditures
(c) Deferred Revenue Expenditures
(d) Deferred Capital Expenditures
18. Which of the following equation(s) is/are correct?
(a) Capital + Outsider liability = Gross Liability
(b) Capital + Outsider liability = Assets
(c) Both (a) and (b)
(d) Neither (a) not (b)
19. Assertion (A): Interest on loan taken from the partners by a firm is shown in profit & loss account.
Reason (R): Interest on loan is a charge on profit.
(a) Both (A) and (R) are correct but (R) is not correct explanation of (A)
(b) Both (A) and (R) are correct and
(R) is the correct explanation for (A)
(c) (A) is correct but (R) is incorrect
(d) (R) is correct but (A) is incorrect

Corporate Accounting

20. Profit on redemption of debenture is transferred to
(a) General Reserve
(b) Capital Reserve
(c) Reserve Capital
(d) Both (a) & (b)
21. At the time of forfeiture of shares the share capital account is debited with;
(a) Face Value
(b) Called-up Value
(c) Paid-up Value
(d) Issued Value
22. The portion of the capital which can be called up only on the winding-up of the company is called;
(a) Authorized capital
(b) Called-up capital
(c) Uncalled capital
(d) Reserve capital
23. If shares of Rs. 2,00,000 are issued for purchase of Assets of Rs. 1,80,000 then Rs. 20,000 will be treated as;
(a) Perineum
(b) Discount
(c) Profit
(d) Loss
24. “Higher the ratio, the more favourable it is”. This does not apply to:
(a) Net Profit Ratio
(b) Stock Turnover
(c) Operating Ratio
(d) Both (a) and (b)
25. A company that issues stocks and bonds to raise funds results in;
(a) Decrease in Cash
(b) Increase in Cash
(c) Increase in Equity
(d) Increase in Liabilities
26. Funds flow statement is prepared on basis of
(a) Profit and loss account of the cement year
(b) The balance sheet of the previous and current year
(c) Both (a) and (b)
(d) None of the above
27. Which of the following are sources of funds for an organisation?
(a) Conversion of debenture into shares
(b) Conversion of loan into shares
(c) Issue of shares against the purchased of fixed assets
(d) None of the above
28. In cash flows, when a company invests in fixed assets and short term financial investments results in;
(a) Increased Equity
(b) Increased Liabilities
(c) Decreased Cash
(d) Increased Cash
29. The statement of cash flow, clarifies cash flows according to;
(a) Operating and Non-operating Flows
(b) Inflow and Outflow
(c) Investing and Non-operating Flows
(d) Operating, Investing and Financing Activities
30. Which item comes under financial activities in cash flow?
(a) Redemption of Preference Share
(b) Issue of Preference Share
(c) Interest Paid
(d) All the above

Cost & Management Accounting

31. What is the break-even Point, and what does it refer to?
(a) Total costs are more than total sales
(b) Total costs are less than total sales
(c) Total costs are half of the total sales
(d) Total costs are equal to total sales
32. Which cost is incurred even if the company is closed?
(a) Sunk cost
(b) Historical cost
(c) Shut-down cost
(d) Imputed cost
33. What are direct expenses also known as?
(a) Overhead expenses
(b) Sundry expenses
(c) Chargeable expenses
(d) Major expenses
34. Warehouse rent is a part of which cost?
(a) Production cost
(b) Distribution cost
(c) Prime cost
(d) Factory cost
35. What is the total of all direct costs knows as?
(a) Cost of Production
(b) Cost of Sales
(c) Prime Cost
(d) Works Cost
36. What item is not included in cost accounting?
(a) Product costing
(b) Profit sharing
(c) Planning
(d) Controlling
37. Which type of costing do toy manufacturing companies use?
(a) Multiple costing
(b) Process costing
(c) Unit costing
(d) Batch costing
38. What is the basic premise of cost concept?
(a) Cost ascertainment
(b) Tax compliance
(c) Financial audit
(d) Profit analysis

Advance & Miscellaneous Accounting

39. Bill is drawn on 20th January 2020 for 2 months. After sight date of acceptance is 29th January, 2020. The maturity date of bill will be;
(a) 1st April 2020
(b) 23rd March 2020
(c) 20th March 2020
(d) 20th March 2020
40. Among the following, which ready-to-use accounting software package is available in today’s market?
(a) Tally
(b) Busy
(c) The Professional Accountant
(d) All of the above
41. If an organization wants to develop a computerized accounting system according to its need as the business of the organization is complex. Which software should opt for?
(a) Ready to use software
(b) Customized software
(c) Tailor-made software
(d) All of the above
42. The ————– of a vender is also an important factor to consider while opting for computerized accounting software.
(a) Level of Profit
(b) Honesty
(c) Capability
(d) None of the above
43. Which are the factors to be considered while using source accounting software?
(a) Flexibility
(b) Adaptability
(c) Interest in Management
(d) Both (a) and (b)
44. Where are the advantages of tailor-made software ?
(d) These are ready-made software
(b) Low cost
(c) High secrecy of data
(d) None of the above
45. Which of the following is not an advantage of a computerized accounting system?
(a) High speed
(b) High Reliability
(c) Reduced Training Cost
(d) None of the above
46. What are the features of computerized accounting software?
(a) Storage of accounting data and online input
(b) Instantly produces different reports
(c) Group different account
(d) All of the above
47. A software must be easy to —————-
(a) Install
(b) Adapt
(c) Understand
(d) All of the above
48. What are the features of a computerized accounting system?
(a) It facilitates off-line input and storage of accounting data
(b) This system never fails
(c) It generates a print-out of purchase and sales invoices
(d) None of the above
49. The data storage system remains hidden from the user and responds to the requirement of the user to the extent the user is authorized to access is known as —-
(a) Back-end database
(b) Front-end database
(c) Data processing
(d) Reporting system
50. Which among these cannot be treated as a limitation of a computerized accounting system?
(a) Security breach
(b) Staff opposition
(c) Automated document production
(d) Cost of training
51. When any manual accounting system is transformed into a computerized accounting system, what do the employees of an organization undertake?
(a) Resist the change
(b) Accept the change
(c) Do nothing
(d) Take training

Business Studies

52. Consider the following statements regarding the UNCTAD;
(i) Established in 1964
(ii) Headquartered at Geneva, Switzerland
(iii) It is a temporary inter-governmental body of UN.
Choose the correct Statement(s)
(a) (i) and (ii)
(b) (ii) and (iii)
(c) (i) and (iii)
(d) All (i), (ii) and (iii)
53. (i) Investment in Plant and machinery or Equipment :- Not more than Rs. 10 Crore.
(ii) Annual Turnover: – Not more than 50 Crore
Above threshold is related with:
(a) Micro Enterprises
(b) Small Enterprises
(c) Medium Enterprises
(b) Large Enterprises
54. Which of the following insurance agreement has the element of protection and investment or both?
(a) Life Insurance
(b) Fire Insurance
(c) Marine Insurance
(d) Both (a) and (c)
55. The enterprises, which are established as departments of the ministry and are considered part or an extension of the ministry itself, called;
(a) Government Company
(b) Statutory Corporations
(c) Departmental Undertakings
(d) None of the above
56. Competition Commission of India (CCI) was recommended by;
(a) Raghavan Committee
(b) Hazari Committee
(c) Tendulkar Committee
(d) K. C. Dasgupta Committee
57. The corporate social responsibility provision within the Companies Act 2013 is applicable to the companies with a Net Worth of
(a) Rs. 1000 crore and more
(b) Rs. 500 crore and more
(c) Rs. 5 crore and more
(d) Rs. 2 crore and more
58. Section 2(62) of the Companies Act, 20l3 is related with;
(a) Right Issue
(b) One Person Company (OPC)
(c) Employee Stock Option
(d) Buy Back of Shares
59. (i) Life insurance is contract of indemnity.
(ii) The subject matter of life insurance is human life.
(iii) Loss is measurable in life insurance.
Choose the correct combination of true statements
(a) only (i) and (ii)
(b) only (i)
(c) only (ii)
(d) only (iii)
60. Which of the following is not an Equity-based Joint Venture?
(a) Company
(b) Partnership
(c) Limited Liability Partnership
(d) Strategic Alliances
61. Which of the following is/are correct in context to Secret Partner?
1. A partner whose association with the firm is unknown to the general public.
2. He contributes to the capital of the firm.
3. He has limited liability towards the creditors.
(a) Only 1 & 3
(b) Only 1 & 2
(c) Only 2 & 3
(d) All 1, 2 and 3
62. Which of ‘the following is not a part of Secondary Industry?
(a) Construction
(b) Extractive
(c) Assembling
(d) Processing
63. The International Solar Alliance (ISA) was conceived as a joint effort by;
(a) India and France
(b) India and USA
(c) USA and France
(d) India and Japan
64. The new Consumer Protection Act, 2019 came into force on;
(a) 20th July 2019
(b) 20th July 2020
(c) 20th August 2019
(d) 20th August 2020
65. India’s First industrial Policy was announced on;
(a) April 6, 1951
(b) April 6, 1950
(c) April 6, 1949
(d) April 6, 1948
66. Asia’s first EPZ (Export Processing Zone) was established in;
(a) 1965 at Cochin, Kerala
(b) 1964 at NOIDA, UP
(c) 1965 at Kandla, Gujrat
(d) 1965 at Falta, West Bengal
67. International Standard Organization (ISO) was found in
(a) 1919
(b) 1946
(c) 1964
(d) 1972
68. A document of title to the goods which is freely transferable by the endorsement and delivery is called;
(a) Shipping Bill
(b) Cart Ticket
(c) Bill of Loading
(d) Mate ‘s Receipts
69. Which part of the SWOT analysis is related to internal environment of business?
(a) T and O
(b) S and W
(c) T and W
(d) S and O
70. A contractual arrangement in which one firm grants access to its patents to another firm in a foreign country for a fee, is called;
(a) Contract manufacturing
(b) Licensing
(c) Strategic Alliance
(d) Wholly owned Subsidiaries

Finance

71. Consider the following statements in context to ICRA;
(i) Established in 1991
(ii) Headquartered in Gurugram,
Choose the correct statement(s)
(a) Only (i)
(b) only (ii)
(c) Both (i) and (ii)
(d) Neither (i) not (ii)
72. The change in a company’s Profit after tax due to the change in its EBIT is known as;
(a) The degree of Operating Leverage
(b) The degree of Financial Leverage
(c) The degree of Combined Leverage
(d) Neither (a) nor (b)
73. Who is the current Chairperson of SEBI?
(a) Ajay Tyagi
(b) H. C. Chandra
(c) Madhabi Puri Buch
(d) R. K. Nayar
74. An instrument issued abroad by an Indian company to raise funds in some foreign currency, is called;
(a) Global Depository Receipts
(b) American Depository Receipts
(c) Indian Depository Receipts
(d) Inter Corporate Deposits

Banking

75. The process of receiving or stripping the legal tender of a currency is called;
(a) Digitisation
(b) Micro Finance
(c) Demonetisation
(d) Value Reduction
76. First Regional Rural Bank was established on;
(a) l5th August 1975
(b) 2nd October 1975
(c) 1st April 1975
(d) 26th January 1975
77. Institution that provides all the banking facilities like merchant banking, mutual funds, insurance and etc. under a single roof, is known as;
(a) Integrated banking
(b) Concentrated banking
(c) Universal Banking
(d) Unit Banking

Business Management

78. (i) Productivity is ascertained by comparing the value of output with the value of the inputs.
(ii) It is used as a measure of efficiency.
Find out the correct statement(s) from the above statements.
(a) Only 1
(b) Both 1 & 2
(c) Neither 1 nor 2
(d) Only 2
79. Which of the following book is correctly matched with the publication year?
(a) Shop Management – 1906
(b) Administration Industrielle ET Gcnerate – 1919
(c) The Functions of the Executive – 1930
(d) Principles of Scientific Management -1911
80. As per Herzberg’s Hygiene Theory of Motivation, which among the following is not a motivational factor?
(a) Recognition
(b) Working conditions
(c) Responsibility
(d) Achievements
81. A process through which senior level openings are planned for and eventually filled is called;
(a) Development Planning
(b) Succession Planning
(c) Executive Development
(d) Management Games
82. Which structure of organization is formed on the ‘basis of Production’?
(a) Line Organization
(b) Line and Staff Organization
(c) Divisional Organization
(d) Functional Organization
83. According to the leadership contingency model developed by Fred. E. Fiedler, three major situational variables are;
(i) Leader-Follower relation
(ii) Task Structure
(iii) Expert Power
(iv) Position Power
(v) Culture
(a) (i), (ii) and (iii)
(b) (i), (ii) and (iv)
(c) (ii), (iii) and (iv)
(d) (i), (ii) and (v)
84. Which of the following is not a repetitive use Plan?
(a) Policies
(b) Procedures
(c) Projects
(d) Methods
85. Which one of the following is not a Personnel at the Planning level?
(a) Route Clerk
(b) Instruction Card Clerk
(c) Shop Disciplinarian
(d) Inspector
86. “A plan is a trap to capture the future”. This statement is of;
(a) Newman
(b) Hurley
(c) Allen
(d) Terry
87. For which organization, functional organization structure is useful?
(a) Single Product
(b) Multi Product
(c) Both (a) and (b)
(d) Neither (a) nor (b)
88. Supervisor is the link between;
(a) Top and Middle Management
(b) Workers and Middle Management
(c) Workers and Lower Management
(d) Workers and Directors
89. A process by which individual organize and interpret their sensory impressions in order to give meaning to their environment is called
(a) Perception
(b) Experience
(c) Expectations
(d) Interest
90. Which one of the following is not a source of power according to French and Ravan?
(a) Reward Power
(b) Coercive Power
(c) Autocratic Power
(d) Referent Power
91. General Statements which guide or channel the thinking of all personnel charged with decision making is called;
(a) Objectives
(b) Strategy
(c) Policies
(d) Project
92. In VRIO framework, ‘R’ stands for:
(a) Replicable
(b) Rare
(c) Reliable
(d) Restrictions
93. Which one of the following is not a factor of The Big Five Personality Model?
(a) Introversion
(b) Extraversion
(c) Agreeableness
(d) Emotional Stability
94. A type of goal conflict in which an individual is faced with an alternative that has both positive and negative consequences is called;
(a) Approach-Approach Conflict
(b) Avoidance-Avoidance Conflict
(c) Approach-Avoidance Conflict
(d) Role Conflict

Human Resource Management

95. “Plan-Do-Check-Act Cycle” for the implementation of Total Quality Management in any organization is suggested by;
(a) Robert Owen
(b) W.E. Deming
(c) Herbert Simon
(d) Peter F. Drucker
96. (i) Quality circle emerged from quality control and quite popular in Japan.
(ii) It intends to improve the quality of output.
(iii) It ensures positional discrimination among employees.
Choose the correct combination of True Statements.
(a) (i) and (ii) only
(b) (ii) and (iii) only
(c) (i) and (iii) only
(d) All (i), (ii) and (iii)
97. Which of the following is not a future-oriented method of performance appraisal?
(a) Management by objective
(b) 3600 Appraisal
(c) BARS
(d) Psychological Appraisal
98. Which one of the following is not an external source of recruitment?
(a) Advertisement
(b) Promotion
(c) Education Institute
(d) Employment Exchange

Marketing Management

99. At which stage of PLC, maximizing profit while defending market share should be the marketing objective for marketers?
(a) Introduction
(b) Growth
(c) Maturity
(d) Decline
100. The Better-Mousetrap is related to;
(a) The Product Concept
(b) The Production Concept
(c) The Marketing Concept
(d) Both (b) and (c)