KVS PGT Commerce Previous Year Question Paper – 2023
Total No. of Questions : 100 (for specific subject commerce)
Questions Bifurcation summary
| S. No | Subject | No. of MCQs | S. No | Subject | No. of MCQs |
| 1 | Financial Accounting | 17 | 2 | Corporate Accpunting | 9 |
| 3 | Business Studies & International Business | 33 | 4 | Finance & Banking | 15 |
| 5 | Business Management | 21 | 6 | Human Resource Management | 3 |
| 7 | Marketing Management | 2 |
Financial Accounting
- Which of the following is an Accounting Equation?
(a) Liabilities = Assets + Capital
(b) Capital = Assets – Liabilities
(c) Capital = Assets + Liabilities
(d) Assets = Liabilities – Capital - ‘Making provisions for Doubtful Dept’ is an example of which accounting convention?
(a) Materiality
(b) Full Disclosure
(c) Business Entity
(d) Prudence - According to which Accounting concept, ‘Income Tax’ paid by the proprietor is debited to Drawings Account?
(a) Going Concern
(b) Prudence
(c) Accrual
(d) Business - The head office of “The Institute of Cost Accounts of India” is located at:
(a) Chennai
(b) Delhi
(c) Mumbai
(d) Kolkata - In ‘Double Entry System’ of Accounting, every business transaction affects____________.
(a) At least two accounts
(b) Two accounts
(c) More than two accounts
(d) Two sides of the same account - Machinery of the book value of Rs. 15,000 was sold for Rs. 15,000 and new machine was purchased for Rs. 10,000 and cartage of Rs. 250 was paid for machine. Compute the amount of capital expenditure.
(a) Rs. 10,000
(b) Rs. 15,000
(c) Rs. 9,000
(d) Rs. 10,250 - Which of the following is not a function of Accounting?
(a) Profit Maximisation
(b) Keeping systematic records
(c) Meting legal requirements
(d) Protecting the assets of business - What is to br prepared after ledger – posting?
(a) Trial Balance
(b) Trading A/c
(c) Profit and Loss A/c
(d) Balance Sheet - The return of goods by a customer should be debited to __________.
(a) Sales Account
(b) Customer Account
(c) Return Inward Account
(d) Purchase Return Account - The process of transfer the entries, from subsidiary books to ledger, is known as:
(a) Balancing
(b) Journalising
(c) Posting
(d) Transferring - A and B share profits and losses in the ratio of 4 : 3. They admit C for 1/8 th share in profits. The new profit sharing ratio of A, B and C will be:
(a) 4 : 3 : 1
(b) 4 : 3 : 3
(c) 5 : 2 : 2
(d) 4 : 3 : 4 - The financial positions of a trading business is ascertained by preparing?
(a) Trial Balance
(b) Trading Account
(c) Balance sheet
(d) Trading and profit & Loss Account - Goods withdrawn by the proprietor from business, his/her personal use, will be credited to:
(a) Drawings Account
(b) Purchases Account
(c) Sales Account
(d) Proprietor’s Account - Which of the following account will invariably have a debit balance?
(a) Accounts Receivable
(b) Accounts Payable
(c) Bank Account
(d) Current Account of a partner - Pre – paid Rent is a:
(a) Personal Account
(b) Expense Account
(c) Real Account
(d) Nominal Account - Phool Singh’s capital on April 1, 2021 was Rs. 90,000. Information regarding 2021-22 is as under:
Interest on Drawing Rs.10,000
Interest on Capital Rs.4,000
Drawings Rs.28,000
Profit Rs. 30,000
Calculate the capital of Phool Singh as on March 31, 2022
(a) Rs. 1,38,000
(b) Rs. 1,34,000
(c) Rs. 86,000
(d) Rs.94,000 - Income & Expenditure Account is prepared by a ‘Not – for – profit organisation’ on:
(a) Receipt Basis
(b) Accrual Basis
(c) Cash Basis
(d) Accrual – cum – Cash Basis
Corporate Accpunting
- A public company can change interest on calls in arrears al the rate not exceeding:
(a) 10% p.a.
(b) 11% p.a.
(c) 12% p.a.
(d) 13% p.a. - Which is true about Reserve Capital?
(a) It is to be called at the time of winding – up of the company
(b) It is a part of called – up capital
(c) A charge can be created against it
(d) It is to be called for expansion of the business - Interest coverage ratio is:
(a) (Profit before Tax)/(Interst on Debt)
(b) (Net Profit)/(Interst on Debt)
(c) (Profit before Interst and Taxes)/(Interst on Debt)
(d) (Long-term Debts )/(Interst on Debt) - Stock Turnover Ratio is:
(a) Profitability Ratio
(b) Activity Ratio
(c) Solvency Ratio
(d) Liquidity Ratio - Given information:
Total Sales Rs.4,40,0000
Return Inward Rs.40,000
Gross Profit Rs.1,00,000
Closing Stock Rs.1,20,000
Excess the stock over opening stock Rs.40,000
Calculate the stock Turnover ratio
(a) 1 Times
(b) 2 Times
(c) 3 Times
(d) 4 Times - Dividend is usually paid on:
(a) Issued Capital
(b) Uncalled Capital
(c) Paid – up Capital
(d) Authorised Capital - Divided paid by a finance company is categorized as:
(a) Wasting Activity
(b) Operating Activity
(c) Financing Activity
(d) Investing Activity - Which of the following transaction will not result into flow of cash?
(a) Redemption of 8% Debentures Rs. 7,00,000
(b) Issue of Preference Share Rs. 2,00,000
(c) Sale of Plant Rs. 3,50,000
(d) Cash deposited in Bank Rs. 30,000 - From the following information, calculate cash flow from investing Activities:
March 31, 2021 (Rs.) March 31, 2022 (Rs.) Land (at cost) 20,00,000 16,00,000 Land was sold at a profit of 3,20,000 (a) Inflow of Rs. 7,20,000
(b) Inflow of Rs. 4,00,000
(c) Inflow of Rs. 3,20,000
(d) Inflow of Rs. 19,20,000
Business Studies & International Business
- Which of the following is the measure of success of a business enterprise?
(a) Creation Customers
(b) Sales of Products
(c) Growth Rate
(d) Price of the Products - Banking relates to____________.
(a) Government sector
(b) Service sector
(c) Primary sector
(d) Secondary sector - Which among the following contributes maximum to the GDP?
(a) Primary sector
(b) Secondary sector
(c) Service sector
(d) Food processing - Match the following:
(i) Removing hindrance of knowledge
(ii) Removing hindrance of time
(iii) Removing hindrance of place
(iv) Removing hindrance of risk
(A) Advertising
(B) Transport
(C) Insurance
(D) Warehousing
(a) (i)-(A); (ii)-(D); (iii)-(B); (iv)-(C)
(b) (i)-(C); (ii)-(D); (iii)-(B); (iv)-(A)
(c) (i)-(A); (ii)-(B); (iii)-(D); (iv)-(C)
(d) (i)-(C); (ii)-(B); (iii)-(D); (iv)-(A) - The liability of ‘karta’ in joint Hindu family business is__________.
(a) Not arise
(b) Unlimited
(c) Joint
(d) Limited - Which of the following principle is followed in a co-operative society?
(a) No vote
(b) One man one vote
(c) Multiple votes
(d) One share one vote - Objectives of the company are mentioned in its__________.
(a) Certificate of Incorporation
(b) Memorandum of Association
(c) Certificate of commencement of business
(d) Article of Association - Which one of the following has a bigger functional scope?
(a) Banking
(b) Insurance
(c) Trade
(d) Commerce - Directors of a public company are elected by___________.
(a) Government
(b) Shareholders
(c) Debentureholders
(d) Public - In a Government Company, what minimum portion of the paid up capital must be held by the Government?
(a) 75%
(b) 25%
(c) 51%
(d) 50% - “One man’s control is the best in the world.’’ Who gave this statement?
(a) F.W Taylor
(b) Henry Fayal
(c) L.H. Hanney
(d) W.R. Basset - What should be the minimum number of members in a private company?
(a) 5
(b) 7
(c) 10
(d) 2 - Which of the following is the oldest form of organising public sector enterprises?
(a) Statutory Corporation
(b) Co-operative
(c) Government Company
(d) Departmental undertaking - Match the following:
Name Of Bank
(i) ICICI Bank LTD.
(ii) Axis Bank ltd.
(iii) Punjab National B
(iv) State Bank of India
Year of inception
(A) 1955
(B) 1894
(C) 2009
(D) 1994
(a) (i)-(D); (ii)-(A); (iii)-(B); (iv)-(C)
(b) (i)-(A); (ii)-(B); (iii)-(C); (iv)-(D)
(c) (i)-(C); (ii)-(B); (iii)-(D); (iv)-(A)
(d) (i)-(D); (ii)-(C); (iii)-(B); (iv)-(A) - The principle of subrogation does not apply to_________.
(a) Life Insurance
(b) Marine Insurance
(c) Fire Insurance
(d) General Insurance - In which type of ‘Bank Account’, the deposit in excess of a particular limit, automatically gets converted into fixed deposit?
(a) Fixed Deposit Account
(b) Term Deposit Account
(c) Recurring Deposit Account
(d) Multi option Deposit Account - Which of the following is not included in General Insurance?
(a) Fire Insurance
(b) Marine Insurance
(c) Fidelity Insurance
(d) Life Insurance - Bill of Lading is issued by:
(a) Shipping company
(b) Captain of the ship
(c) Custom officer
(d) Agent of the exporter - Which of the following is not regulated by the ‘Competition Act. 2002’?
(a) Predatory Pricing
(b) Abuse of Dominant Position
(c) Medical Negligence
(d) Anti-Competitive Agreement - Who are the primary risk bearers of the company?
(a) Equity shareholders
(b) Preference shareholders
(c) Creditors
(c) Debentureholders - Environment Protection Act was enacted in the year______________.
(a) 1985
(b) 1986
(c) 1987
(d) 1988 - What are the minimum number’ of members required to form a co-operative society?
(a) 2
(b) 7
(c) 10
(d) 20 - Which of the following in not a standardisation mark for quality assurance?
(a) Ecomark
(b) Agmark
(c) Trademark
(d) Hallmark - The agreement of Partnership:
(a) Must be Oral
(b) Must be Written
(c) Must be Written on Stamp Paper
(d) Can be Oral or Written - A Company Sectary appointed in a public company by the:
(a) Shareholders
(b) Public
(c) Board of Directors
(d) Government - Statutory meeting must be conducted by the:
(a) Partnership Firms
(b) Private Companies
(c) Public Companies
(d) Statutory Companies - The interval between two ‘Annual General Meetings’, of a Public Company, shall not exceed:
(a) 15 Months
(b) 18 Months
(c) 20 Months
(d) 12 Months - Which of the following day is observed as ‘World Consumer Right Day’?
(a) March 13
(b) March 14
(c) March 15
(d) March 16 - The maximum number of members in private company can be:
(a) 100
(b) 150
(c) 200
(c) Unlimited - “A company is an artificial person created by law having a separate entity with a perpetual succession and a common seal.”
(a) Justice James
(b) Lord Lindley
(c) Lord Keynes
(d) L.H. Haney - The World Bank started its operation in:
(a) July 1944
(b) June 1946
(c) June 1950
(d) August 1950 - Which element of ‘Business Environment is shaped by belief and customs of citizens of a country?
(a) Economic Environment
(b) Political Environment
(c) Social Environment
(d) Legal Environment - Globalisation is an example of which factor of Marco Environment?
(a) Economic
(b) Political
(c) Technological
(d) Social
Finance & Banking
- Trade credit is provided by__________.
(a) Commercial Bank
(b) Supplier
(c) Buyer
(d) Development Bank - Unit Trust of India became operational in the year:
(a) 1960
(b) 1964
(c) 1968
(d) 1972 - Which source of finance provides benefit in tax?
(a) Debentures
(b) Preference Shares
(c) Retained Earning
(d) Equity Share - Which of the following instrument is used for inter – bank transactions for short term finance repayable on demand with a maturity period of one day to fifteen days?
(a) Commercial Paper
(b) Inter – Corporate Deposits
(c) Call Money
(d) Treasury Bills - Which concept refers to increase in profits of the Equity shareholders due to the use of Long – term Debt?
(a) Trading on Equity
(b) Sale – purchase of Equity shares in Stock Market
(c) Return on Investment
(d) Cash Flow - Long – term investment decision is also known as:
(a) Capital Budgeting Decision
(b) Dividend Decision
(c) Working Capital Decision
(d) Cash Management Decision - ‘Internal Rate of Return Technique’ is used for:
(a) Working Capital Decision
(b) Venture Capital Decision
(c) Dividend Decision
(d) Capital Budgeting Decision - Excess of ‘Current Assets’ over ‘Current Liabilities’ is known as:
(a) Net Fixed Capital
(b) Net Working Capital
(c) Gross Fixed Capital
(d) Gross Working Capital - Enough working capital is an indicator of which quality of the business?
(a) Weakness
(b) Growth
(c) Strength
(d) Liquidity - “Commercial Bills Market” is a part of:
(a) Organised Money Marke
(b) Stock Market
(c) Capital Market
(d) Unorganised Money market - Which of the following is not an instrument of Money Market?
(a) Commercial Paper
(b) Certificate of Deposit
(c) Treasury Bill
(d) Equity Share - What is the maximum period for which commercial paper can be issued?
(a) 3 Months
(b) 6 Months
(c) 1 year
(d) 2 Year - In which year the ‘Securities and Exchange Board of India’ was established?
(a) 1987
(b) 1988
(c) 1989
(d) 1990 - The oldest Stock Exchange in Asia is:
(a) Beijing Stock Exchange
(b) Shanghai Stock Exchange
(c) Bombay Stock Exchange
(d) Tokyo Stock Exchange - Which body regulated the working of the financial markets in India?
(a) Securities and Exchange Board of India
(b) Ministry of Corporate Affairs
(c) Reserve Bank of India
(d) Ministry of Finance
Business Management
- “Management is the art of knowing what you want to do and them seeing that it is done in the best and the cheapest way.’’
This definition of management was given by:
(a) F.W. Taylor
(b) L.H. Hanney
(c) Oliver Sheldon
(d) Henry Fayol - Time-Study was carried out by:
(a) Fayol
(b) Maslow
(c) Taylor
(d) Herzberg - Who among the following has not given Motivation theory?
(a) Maslow
(b) Herzberg
(c) Mc Gregor
(d) Fayol - Management is:
(a) An Art
(b) A Science
(c) Both Art and Science
(d) Neither Art and Science - Co – ordination is:
(a) A merit of Management
(b) The essence of Management
(c) A function of Management
(d) An objective of Management - A network of social relationship that arise spontaneously due to interaction at work is known as:
(a) Decentralisation
(b) Delegation
(c) Formal organization
(d) Informal organisation - Which among the following is not a management thinker?
(a) F.W. Taylor
(b) Henry Fayol
(c) Oliver Shaldon
(d) Karl Marx - Who was the founder of administrative Management?
(a) Max Webar
(b) Elton Mayo
(c) F.W. Taylor
(d) Henry Fayol - Managerial Grid, as a performance evaluation tool was devised by:
(a) Koontz and O’Donnel
(b) Mouton and Blake
(c) Frank and Lillian Gillberth
(d) Peter f. Drucker - Gang Plank is related with which principle of Management?
(a) Order
(b) Unity of Direction
(c) Scalar Chain
(d) Unity of Command - Management should find ‘one best way’ to perform a task.
This statement is related with which technique of Scientific Management?
(a) Motion Study
(b) Method Study
(c) Fatigue Study
(d) Time Study - The concept of ‘Management by Objective’ was propounded by:
(a) Paul Samuelson
(b) F.W. Taylor
(c) Henry Fayol
(d) Peter F. Drucker - Management is termed as a process because:
(a) It is relevant for social organisations
(b) It is important for every organisation
(c) It involves a series of functions
(d) It is applied to the manufacturing process - Which of the following ‘Management Functions’ are closely related?
(a) Planning and Staffing
(b) Planning and Organising
(c) Planning and Controlling
(d) Staffing and Controlling - ‘Need Hierarchy Theory of Motivation’ was propounded by:
(a) Peter F. Drucker
(b) A.H. Maslow
(c) F. Herzberg
(d) W.G. Scott - The sender converts the message into communication symbols by:
(a) Encoding
(b) Feedback
(c) Media
(d) Decoding - Grapevine is associated with:
(a) Vertical Communication
(b) Informal Communication
(c) Formal Communication
(d) Horizontal Communication - ‘Status comes under which of the following type of barriers of communication?
(a) Personal Barrier
(b) Organisational Barrier
(c) Semantic Barrier
(d) Psychological Barrier - Which of the following are correct meaning of ‘Span of Control’?
(a) Every subordinate has one superior
(b) An organisation consists of various departments
(c) Authority of each employee is clearly defined
(d) A manager can supervise only a limited number of subordinates - ‘Human Relating Approach’ to management is given by:
(a) Peter F. Drucker
(b) Henry Fayol
(c) Elton Mayo
(d) F.W. Taylor - ‘Theory X and Theory Y’ of motivation was propounded by:
(a) Herzberg
(b) Norman
(c) Douglas McGregor
(d) A.H. Maslow
Human Resource Management
- Workers learn their work on the equipment, but the training is conducted away from the actual place of work
(a) Apprenticeship Training
(b) Internship Training
(c) Vestibule Training
(d) Coaching - Introduction of new employees is also known as:
(a) Incentives
(b) Training
(c) Placement
(d) Introduction - Which of the following is not a feature of Quality Circle?
(a) Large Size
(b) Regular meetings
(c) Quality focused
(d) Voluntary groups
Marketing Management
- Which of the following statement is correct?
(a) Selling and Marketing are same
(b) Marketing is a part of Selling
(c) Selling is a part of Marketing (d) There is no relation between Selling and Marketing - Which one of the following is not part of Marketing – mix?
(a) Product
(b) Workshop
(c) Price
(d) Place
Answer Key
| 1 (b) | 2 (d) | 3 (d) | 4 (d) | 5 (a) | 6 (d) | 7 (a) | 8 (a) | 9 (c) | 10 (c) |
| 11 (a) | 12 (c) | 13 (b) | 14 (a) | 15 (a) | 16 (c) | 17 (b) | 18 (a) | 19 (a) | 20 (c) |
| 21 (b) | 22 (c) | 23 (c) | 24 (c) | 25 (d) | 26 (a) | 27 (a) | 28 (b) | 29 (c) | 30 (a) |
| 31 (b) | 32 (b) | 33 (b) | 34 (d) | 35 (b) | 36 (c) | 37 (d) | 38 (d) | 39 (d) | 40 (d) |
| 41 (a) | 42 (d) | 43 (d) | 44 (a) | 45 (c) | 46 (a) | 47 (b) | 48 (c) | 49 (c) | 50 (d) |
| 51 (c) | 52 (c) | 53 (a) | 54 (c) | 55 (c) | 56 (d) | 57 (b) | 58 (c) | 59 (a) | 60 (b) |
| 61 (b) | 62 (a) | 63 (c) | 64 (a) | 65 (a) | 66 (d) | 67 (b) | 68 (d) | 69 (a) | 70 (d) |
| 71 (c) | 72 (b) | 73 (c) | 74 (a) | 75 (a) | 76 (c) | 77 (d) | 78 (c) | 79 (b) | 80 (d) |
| 81 (d) | 82 (d) | 83 (b) | 84 (c) | 85 (b) | 86 (d) | 87 (c) | 88 (c) | 89 (b) | 90 (a) |
| 91 (b) | 92 (b) | 93 (d) | 94 (c) | 95 (c) | 96 (c) | 97 (d) | 98 (a) | 99 (c) | 100 (b) |