- Which of the following statement is incorrect ?
(a) Accounting standards in India are framed by IASB
(b) Human resource accounting is mandatory in India
(c) Inflation accounting deals with valuation of assets considering price fluctuations for valuation
(d) Responsibility accounting is followed where revenue and cost centres can be identified - The cost of a machine is Rs. 70,000. It has a 10 year life at the end of which it is expected to realise Rs. 5,000. The depreciation for first 4 years on a straight line basis is
(a) Rs. 28,000
(b) Rs. 26,000
(c) Rs. 22,000
(d) Rs. 20,000 Match the following : - List – I List – II
(a) Money measurement concept i. Applicable to all forms of businesses (b) Business entity concept ii. Basic accounting (c) Cost concept iii. Original purchase price of assets (d) Dual aspect concept iv. Applicable to those transactions of financial nature Codes :
a b c d
(a) iv ii iii i
(b) iii i iv ii
(c) iv i iii ii
(d) iii ii iv i - Prohibition on forward trading was rescinded by Govt. of India in
(a) 2001
(b) 2010
(c) 2000
(d) 2003 - The present value of perpetual bond that pays interest of Rs. 110 annually, given r = 11% will be
(a) Rs. 10,000
(b) Rs. 1,100
(c) Rs. 110
(d) Rs. 1,000 - A zero-coupon bond of maturity value of Rs. 1,000 is currently selling in the market for Rs. 596.30. The term to maturity is 6 years. What is its YTM ?
(a) 10%
(b) 9%
(c) 8%
(d) 12% - Assertion (A) : Blue chip shares are listed on stock exchange.
Reason (R) : Blue chip shares give consistent high dividends.
Codes :
(a) (A) is right, (R) is wrong
(b) (A) is wrong, (R) is right
(c) Both (A) and (R) are wrong
(d) Both (A) and (R) are right - The sensitivity of a stock’s return to the changes in the market is measured by
(a) Standard deviation
(b) Beta
(c) Alpha
(d) Value at risk - Which of the following are the methods of marketing new issues of securities ?
(i) Listing of securities
(ii) Jobbers and brokers
(iii) Private placement of securities
(iv) Privileged subscriptions
Codes :
(a) i and ii
(b) ii and iii
(c) iii and iv
(d) i, ii, iii and iv - “Marking To Market” implies adjusting traders profits or loss position on____________ basis.
(a) Daily
(b) Weekly
(c) Monthly
(d) Hourly - Arrange the following in the order in which they came into existence in India.
(i) Masala Bonds
(ii) Convertible Debentures
(iii) Debentures
(iv) Inflation Index Bonds
Codes :
(a) ii, iii, iv, i
(b) iii, ii, iv, i
(c) i, iii, iv, ii
(d) ii, iii, i, iv - “Short selling” means
(a) Selling less number of shares than the seller holds
(b) Selling of shares without owning them
(c) Selling of shares in a short period
(d) Not selling and holding the stocks - Assertion (A) : “Price Discovery” is a function of derivatives market.
Reason (R) : ‘Price Discovery’ deals with the study of influence of futures price on spot price.
Codes :
(a) (A) is correct, (R) is incorrect
(b) (A) is incorrect, (R) is correct
(c) Both (A) and (R) are incorrect
(d) Both (A) and (R) are correct - A fall in interest rates will make prices of Govt. Securities
(a) Go down
(b) Go up
(c) Remain unchanged
(d) Unrelated to each other - Match the following :
List – I List – II (a) Index option i. Riskless profits (b) Fungibility ii. Option (c) Arbitrage iii. Exchange (d) American iv. Futures market v. Cash settlement Codes :
a b c d
(a) v iv i ii
(b) v iv ii i
(c) iii iv ii i
(d) v iii i ii - When a product is in the maturity stage
(a) The sales will increase at a decreasing rate
(b) The sales will decline at an increasing rate
(c) The sales will increase at an increasing rate
(d) The sales will be more or less stagnant - Brand development index is
(a) The index sales of one brand to another brand
(b) The index of brand sales to category sales
(c) The rate of growth of a brand in the market
(d) The rate of growth of sales of a product - Brand extension means
(a) Using an existing brand to introduce a new product
(b) Introducing a brand into a market
(c) Extending the existing brand to new markets
(d) Introducing new brand in a new market - Match the following :
List – I List – II (a) Product positioning i. Buying without advance planning (b) Impulse buying ii. Putting the product in the mind of customer (c) Supply chain management i ii. Improving performance of dealers through sharpening their skills (d) Dealer training iv. Larger in scope than physical and marketing logistics Codes :
a b c d
(a) iii i ii iv
(b) ii i iv iii
(c) i ii iv iii
(d) ii i iii iv - Put the buying process sequence in correct order.
(i) Attitude
(ii) Adoption
(iii) Legitimisation
(iv) Awareness
(a) iv, iii, ii, i
(b) i, ii, iii, iv
(c) iv, i, iii, ii
(d) iv, iii, i, ii - Efforts of a company to inform, communicate, promote and sell its products and services over the internet is known as
(a) E-Commerce
(b) E-Business
(c) E-Marketing
(d) E-Selling - Assertion (A) : Apple iphone is very expensive and it is the dream of the youth to have one.
Reasoning (R) : Apple follows product line pricing to fix the price of its phones.
Codes :
(a) Both (A) and (R) are incorrect
(b) Both (A) and (R) are correct
(c) (A) is correct but (R) is incorrect
(d) (A) is incorrect but (R) is correct - Assertion (A) : The demand curve of FMCG products in usually relatively inelastic.
Reasoning (R) : The FMCG companies usually follow skimming pricing as a strategy to fix the price.
Codes :
(a) Both (A) and (R) are incorrect
(b) Both (A) and (R) are correct
(c) (A) is incorrect and (R) is correct
(d) (A) is correct and (R) is incorrect - Match the following :
List – I List – II (a) Fare i. Utilities (b) Fee ii. Brokerage service (c) Tariff iii. Transport (d) Commission iv. Consultancy service Codes :
a b c d
(a) i ii iii iv
(b) iv iii ii i
(c) iii iv i ii
(d) i iv iii ii - A promotion programme aimed primarily at middlemen is called
(a) Push strategy
(b) Forced strategy
(c) Sales strategy
(d) Pull strategy - Selling a total package of related goods and services to solve a customer’s problem is called
(a) Complete selling
(b) Comprehensive selling
(c) Systematic selling
(d) System selling - A highly coordinated distribution channel designed to improve operating efficiency and marketing effectiveness is called
(a) Horizontal marketing system
(b) Alternative marketing system
(c) Parallel marketing system
(d) Vertical marketing system - Duplicating the real market conditions to measure consumers’ response before large scale production of a product is known as
(a) Marketing test
(b) Micro marketing
(c) Simulation
(d) Test marketing - Consumers who are bound by traditions and conventions
(a) Conventional customers
(b) Traditional customers
(c) Cautious customers
(d) Laggards - The process of moving towards long term, cost-effective, mutually beneficial trust with selected customers is known as
(a) Relationship marketing
(b) Long-term marketing
(c) Selective marketing
(d) Trust marketing - Who is in a best position to observe and evaluate employee’s performance ?
(a) Peers
(b) Immediate superior
(c) Rating committee
(d) Top management - Statement (A) : Hygiene factors are the intrinsic part of job carried out by an individual.
Statement (B) : Theory ‘Y’ represents the optimistic view about the human nature.
Codes :
(a) Both statements (A) and (B) are correct
(b) Both statements (A) and (B) are incorrect
(c) Statement (A) is correct and (B) is incorrect
(d) Statement (A) is incorrect and (B) is correct - Match the following :
List – I List – II (a) Functional foremanship i. Max Weber (b) Unity of direction ii. David C. McClelland (c) Bureaucracy iii. F.W. Taylor (d) Need achievement iv. Henry Fayol Codes :
a b c d
(a) iv i ii iii
(b) iii i iv ii
(c) ii iii iv i
(d) iii iv i ii - Assertion (A) : Focus of human resources management is positive. It is proactive in nature and pays attention to employee satisfaction.
Reasoning (R) : The personnel management philosophy relied very much on the theory ‘X’ approach.
Codes :
(a) Both (A) and (R) are correct
(b) Both (A) and (R) are incorrect
(c) (A) is correct and (R) is incorrect
(d) (A) is incorrect and (R) is correct - One factor influencing the rater’s general impression on ratings of other factors is called
(a) Like me effect
(b) Bias
(c) Halo effect
(d) Similarity factor - Job analysis involves
(a) Job design
(b) Job order
(c) Job description
(d) Job satisfaction - A horizontal expansion of the job is termed as
(a) Job enrichment
(b) Job involvement
(c) Job rotation
(d) Job enlargement - Appointment of labour welfare officer is mandatory according to
(a) Industrial Disputes Act
(b) Employee’s State Insurance Act
(c) Factories Act
(d) Workmen Compensation Act - Assertion (A) : Apprenticeship programme is one of the widely used off-the-job training method.
Reasoning (R) : On-the-job training methods are more effective than off-the-job training methods.
Codes :
(a) Both (A) and (R) are correct
(b) Both (A) and (R) are incorrect
(c) (A) is correct and (R) is incorrect
(d) (A) is incorrect and (R) is correct - Sensitivity training is also known as
(a) Operative training
(b) T-group training
(c) In basket exercise
(d) Theory of games - Match the following :
List – I List – II (a) Job simplification i. Expanding jobs horizontally (b) Job enlargement ii. Increasing job content (c) Job rotation iii. Dividing jobs into smaller components (d) Job enrichment iv. Movement of employee from one job to another Codes :
a b c d
(a) ii iii iv i
(b) iv iii i ii
(c) iii i iv ii
(d) ii i iv iii - The process of determining pay depending on the worth of a job is called
(a) Job pricing
(b) Compensation plan
(c) Job comparison pay
(d) Wage fixation - The first association of Indian workers was founded by
(a) Gandhiji
(b) N. M. Lokhande
(c) Mohan Roy
(d) Lokamanya Tilak - The All India Trade Union Congress was founded during
(a) 1878
(b) 1920
(c) 1923
(d) 1953 - Statement (A) : Employers usually survey other firms to see if they are paying comparable pay for comparable jobs.
Statement (B) : Most employers pay just one pay rate for all jobs in a particular pay grade.
Codes :
(a) Both statements (A) and (B) are correct
(b) Both statements (A) and (B) are incorrect
(c) Statement (A) is correct and (B) is incorrect
(d) Statement (A) is incorrect and (B) is correct - “Trade is a positive sum game” related to
(a) Theory of comparative advantage
(b) Heckscher-ohlin theory
(c) New trade theory
(d) Product life cycle theory - Local content requirement is related to
(a) TRIPS
(b) TRIMS
(c) GATS
(d) MFA - The infant industry argument is related to
(a) Free trade
(b) Subsidies
(c) Taxes
(d) Protection - FIPB is related to
(a) FII
(b) FDI
(c) Both (A) and (B)
(d) Participatory notes - “Multi National Enterprise is an imperialist tool for exploiting host countries”.
(a) Radical view
(b) Pragmatic Nationalist view
(c) Nationalist view
(d) Free market view - Put the following levels of economic integration from the lowest to the highest order.
(i) Common market
(ii) Free trade area
(iii) Customs union
(iv) Political union
(v) Economic union
(a) i, ii, iii, iv, v
(b) v, iii, iv, ii, i
(c) ii, iii, i, v, iv
(d) iv, v, i, iii, ii - Simultaneous purchase and sale of a given foreign exchange for two different value dates
(a) Futures
(b) Options
(c) Swaps
(d) Hedging - Bandwagon effect is related to
(a) Taking long positions
(b) Currency swaps
(c) Investor psychology
(d) Forward contracts - Bill of lading is a
(a) Receipt
(b) A contract
(c) A document title
(d) All the above - ECGC is concerned with
(a) Credit
(b) Insurance
(c) Transport
(d) All the above - “Trade goods and services for other goods and services when they cannot be traded for money” is known as
(a) Entrepot
(b) Counter trade
(c) Trade in rupee terms
(d) Switch trading - Statement (A) : The objective of WTO is to expand trade among the member nations.
Statement (B) : Removal of Quantitative restrictions help in duty free imports and hence expansion of trade.
Codes :
(a) Both Statements (A) and (B) are correct
(b) (a) Statement (A) is correct but Statement (B) is incorrect
(c) Both Statements (A) and (B) are incorrect
(d) Statement (A) is incorrect and Statement (B) is correct - Match the following :
List – A List – B (a) Protection for technological innovations i. Industrial designs (b) Exclusive right to use artistic works ii. Trade marks (c) Protected in perpetuity iii. Copy rights (d) Last for a maximum of 15 years iv. Patents Codes :
a b c d
(a) iii ii iv i
(b) i ii iii iv
(c) ii iii i iv
(d) iv iii ii i - Assertion (A) : MNCs try to adopt acquisition as a strategy to enter the foreign markets.
Reasoning (R) : Green field investment takes a short-time to generate cash flow.
Codes :
(a) (A) is correct and (R) is incorrect
(b) (A) is incorrect and (R) is correct
(c) Both (A) and (R) are incorrect
(d) Both (A) and (R) are correct - Assertion (A) : India is following managed floating rates system for determination of exchange rates.
Reasoning (R) : If there is high volatility in the exchange rate, the RBI intervenes in the market to reduce the volatility.
Codes :
(a) Both (A) and (R) are correct
(b) Both (A) and (R) are incorrect
(c) (A) is correct and (R) is incorrect
(d) (A) is incorrect and (R) is correct - Aggregate amount of deduction under sections 80 C, 80 CCC and 80 CCD cannot exceed
(a) Rs. 1,00,000
(b) Rs. 50,000
(c) Rs. 1,50,000
(d) Rs. 2,50,000 - For the purpose of deduction U/S 80 DD, assessees
(a) Is either an individual or HUF
(b) Is resident in India
(c) Has a dependent disable relative
(d) Is non-resident in India - A limited liability partnership firm is taxable at the rate of
(a) 10%
(b) 20%
(c) 30%
(d) 40% - To levy corporate income tax in India, the company’s residential status is decided on the basis of
(a) Company management and control
(b) Nature of the company
(c) Residential status of the company for the previous year
(d) Ownership of the company - Match the following :
List – I List – II (a) GSTR – 1 i. Quarterly returns (b) GSTR – 2 ii. Outward supply (c) GSTR – 3 iii. Inward supply (d) GSTR – 4 iv. Monthly returns Codes :
a b c d
(a) ii iii iv i
(b) ii iii i iv
(c) iii ii i iv
(d) iv ii iii i - Exemption U/S 54 is available to
(a) All assessees
(b) Individuals only
(c) Individual and HUF
(d) HUF only - Statement (A) : Income which accrue outside India from a business controlled from India is taxable is case of resident only.
Statement (B) : Deduction U/S 80 D is allowed to any assessee.
Codes :
(a) Statement (A) is correct, (B) is wrong
(b) Statement (A) is wrong, (B) is correct
(c) Both the Statements are wrong
(d) Both the statements are correct - The company is paying a basic salary of Rs. 60,000 pm, HRA (20% of basic pay), and rent of Rs. 8,000 pm to an employee. What is the HRA exemption from income tax for the employee ?
(a) Rs. 48,000
(b) Rs. 24,000
(c) Rs. 1,20,000
(d) Rs. 96,000 - Unabsorbed depreciation which could not be set off in the same assessment year, can be carried forward for
(a) 8 years
(b) 4 years
(c) 2 years
(d) Indefinite period - Statement (A) : Education cess is leviable in case of all assessees.
Statement (B) : Income deemed to accrue or arise in India is taxable in case of resident only.
Codes :
(a) Statement (A) is correct, but (B) is wrong
(b) Statement (A) is wrong, but (B) is correct
(c) Both the Statements are wrong
(d) Both the Statements are correct - Match the following :
List – I List – II (a) Sec. 112 i. Transfer of foreign exchange asset (b) Sec. 46 ii. Transfer of GDRs (c) Sec. 115 D iii. Tax on L-T capital gains (d) Sec. 115 AC iv. Capital gains on distribution of assets Codes :
a b c d
(a) iii iv i ii
(b) iii iv ii i
(c) iv iii ii i
(d) ii iii i iv - U/S 115 JB, the net profit shall be increased by the following items if already debited to P&L account.
(i) The amount of dividend paid
(ii) The amount of depreciation
(iii) The amount of deferred tax
Codes :
(a) i and ii are correct
(b) ii and iii are correct
(c) i and iii are correct
(d) i, ii and iii are correct - Long-term capital gains in case of a firm U/S 112 taxed at
(a) 40%
(b) 30%
(c) 25%
(d) 20% - ___________Section of I.T. Act accommodates all deductible expenses other than those specifically covered by other provisions.
(a) 37
(b) 37(1)
(c) 37(2)
(d) 37(3) - Bond washing transaction is covered under which section of I.T. Act ?
(a) Sec. 57
(b) Sec. 94
(c) Sec. 95
(d) Sec. 43Answer Key
1 (b) 2 (b) 3 (c) 4 (c) 5 (d) 6 (b) 7 (d) 8 (b) 9 (c) 10 (a) 11 (b) 12 (b) 13 (d) 14 (b) 15 (a) 16 (a) 17 (b) 18 (a) 19 (b) 20 (c) 21 (c) 22 (c) 23 (d) 24 (c) 25 (a) 26 (d) 27 (d) 28 (d) 29 (d) 30 (a) 31 (b) 32 (a) 33 (d) 34 (a) 35 (c) 36 (c) 37 (d) 38 (c) 39 (d) 40 (b) 41 (c) 42 (a) 43 (b) 44 (b) 45 (c) 46 (a) 47 (b) 48 (d) 49 (b) 50 (a) 51 (c) 52 (c) 53 (c) 54 (d) 55 (b) 56 (b) 57 (b) 58 (d) 59 (a) 60 (a) 61 (c) 62 (c) 63 (c) 64 (a) 65 (a) 66 (c) 67 (c) 68 (b) 69 (a) 70 (a) 71 (a) 72 (d) 73 (d) 74 (b) 75 (b)