Accountancy
- Under writing commission is payable on which basis :
(a) The issue price of shares
(b) The normal price of shares
(c) The market price of shares
(d) The application money received on shares.
UP TGT – 2015 - A and B are partners. A dies in an accident
(a) The firm would be dissolved
(b) The partnership would be dissolved
(c) Both firm and partnership would be dissolved
(d) None of the above
UP TGT – 2015 - In case of Liquidation of a company, which of the following is repayable in the last :
(a) Unsecured Creditors
(b) Equity Shareholders
(c) Preference Shareholders
(d) Debenture holders
UP TGT – 2015 - A partnership agreements ends when
(a) On the retirement of a partner
(b) On the death of a partner
(c) On the insolvency of a partner
(d) All of the above
UP TGT – 2015 - Balance in Cash Book shows:
(a) Amount deposited in bank
(b) Difference between Income and Expenses
(c) Total real Income
(d) Available amount of cash.
UP TGT – 2015 - Wages paid for installation of a new machine debited to wages account is an error of:
(a) Omission
(b) Principle
(c) Additions
(d) Wrong Posting
UP TGT – 2015 - Every shareholder is
(a) Company’s Agent
(b) Company’s Owner
(c) Company’s Lender
(d) Company’s Customers
UP TGT – 2015 - Which of the following is not prepared in financial statement of a non – trading concern?
(a) Receipt and Payment Account
(b) Income & Expenditure Account
(c) Trading Account
(d) Balance Sheet
UP TGT – 2015 - Which of the following is not a business transaction?
(a) Bought the furniture of Rs. 1,00,000 for business.
(b) Paid Son’s fees from his personal bank account : Rs. 20,000
(c) Paid of salaries of employees: Rs.50,000
(d) Purchased goods for business for Rs. 75,000
UP TGT – 2015 - What is the amount of Gross Profit or Loss, when cost of goods sold Rs. 79,000, Sales Rs. 1,10,000, Purchase Rs. 30,000 :
(a) Rs. 80,000(profit)
(b) Rs. 31,000(profit)
(c) Rs. 49,000(profit)
(d) Rs. 1,000(loss)
UP TGT – 2015 - The liability of share holders of a Public Limited Company is limited to the: (a) Paid-up value of share.
(b) Nominal value of share.
(c) Market value of the share
(d) None of these.
UP TGT – 2015 - An expenditure is called capital expenditure, when :
(a) The amount is huge
(b) The amount is paid in lump sum
(c) That expenditure is intended to benefit in the future period .
(d) That expenditure is intended to benefit in the current period only.
UP TGT – 2015 - Which of the following is not Current Liability?
(a) Bank Overdraft
(b) Debentures
(c) Outstanding Salary
(d) Bills Payable
UP TGT – 2015 - Trial Balance is prepared to check:
(a) Financial Liquidity Position of the business
(b) Financial Result of the business
(c) Amount of purchases & Sales of the business.
(d) Arithmetical accuracy of accounting entires.
UP TGT – 2015 - The basic Principles of Accounting is “debit the receiver and credit the giver” applies to :
(a) Profit and Loss Account
(b) Real Account
(c) Personal Account
(d) Cash Account
UP TGT – 2015 - Account relating to Income and Expenditure and Profit and Loss is called :
(a) Real Account
(b) Nominal Account
(c) Personal Account
(d) None of the above
UP TGT – 2015 - Realisation Account is prepared by a partnership firm at the time of :
(a) Retirement of a Partner
(b) Death of a Partner
(c) Admission of a new Partner
(d) Dissolution of the firm.
UP TGT – 2015 - In the absence of any agreement the partner gets
(a) Equal share in profit & loss
(b) 12% interest on capital
(c) 18% interest on loan
(d) All of the above
UP TGT – 2015 - Outstanding salary give within Trial Balance will be shown in the :
(a) Trading Account and Balance Sheet
(b) Profit & Loss A/c and Balance Sheet
(c) Liabilities side of Balance Sheet
(d) Asset side of Balance Sheet.
UP TGT – 2015 - Right Shares mean the shares which are :
(a) Issued to promoters of the Company
(b) Issued to Vendors of the Company
(c) Issued to directors of the Company
(d) Issued to existing shareholders of the company.
UP TGT – 2015 - A businessman has got practice to value opening stock 10% above cost if the inflated price of opening stock is Rs. 27,500, what is the original cost?
(a) Rs. 30,000
(b) Rs. 24,000
(c) Rs. 25,000
(d) Rs. 22,500
UP TGT – 2015 - Match List I with List II and select your answer from the code given :
LIST A
(P) Partner’s Loan
(Q) Death of a Partner
(R) Loss in business
(S) Revaluation A/c
LIST B
(i) Debit balance of Profit & Loss A/c
(ii) 6% Interest
(iii) Joint Life Policy
(iv) Profit and Loss Adjustment A/c
P Q R S
(a) (ii) (iii) (i) (iv)
(b) (i) (ii) (iii) (iv)
(c) (iii) (ii) (i) (iv)
(d) (iv) (i) (ii) (iii)
UP TGT – 2015 - In the event of death of a partner, joint life policy amount should be credited capital accounts of
(a) All the partners to profit & loss sharing ratio
(b) Remaining partners in profit & loss sharing ratio
(c) Only in the account of deceased partner
(d) None of the above
UP TGT – 2015 - Generally auditing is not required for small scale sole proprietorship business because :
(a) Its scope is limited
(b) Its proprietor has full control on it.
(c) Legally it is not necessary
(d) All of the above.
UP TGT – 2015 - Which of the following equation is not correct ?
(a) Purchase + Opening Stock – Cost of goods sold = Closing stock
(b) Opening stock + Purchase – Closing stock = Cost of goods sold
(c) Closing Stock + Cost of good sold – Purchase = Opening Stock
(d) Cost of goods sold – Closing Stock – Purchase = Opening Stock
UP TGT – 2015 - Which of the following is not a Fixed Asset
(a) Building
(b) Furniture
(c) Cash
(d) Machinery
UP TGT – 2015 - Under Intensive Checking :
(a) All books of accounts are examined.
(b) Specify books of accounts are examined.
(c) Only cash book is examined
(d) None of the above
UP TGT – 2015 - Short workings is equal to :
(a) Minimum Rent + Royalties
(b) Royalties – Minimum Rent
(c) Minimum Rent – Royalties
(d) Royalties – Amount paid to Landlord
UP TGT – 2015 - If Current Ratio is 2.4 : 1 and Current Liabilities are Rs. 20,000 what will be the amount of Current Assets ?
(a) Rs. 44,000
(b) Rs. 48,000
(c) Rs. 50,000
(d) Rs. 8,333
UP TGT – 2015 - Garner Vs Murray rule applies when
(a) All partners are insolvent
(b) All partners are solvent
(c) Some partners are insolvent
(d) None of the above
UP TGT – 2015 - FIFO and LIFO are the pricing methods of :
(a) Fixed Assets
(b) Investments
(c) Issued Raw Materials
(d) All of the above
UP TGT – 2015 - Depreciation is charged on :
(a) Current Asset
(b) Fixed Asset
(c) Intangible Asset
(d) Tangible Asset.
UP TGT – 2015 - Goodwill is :
(a) An intangible asset
(b) A current asset
(c) A fixed asset
(d) A personal asset
UP TGT – 2015 - Debit is equal to credit is :
(a) Occasionally true in accounting
(b) Occasionally wrong in accounting
(c) Always true in accounting
(d) True in special circumstances.
UP TGT – 2015 - According to which of the following accounting concept, even proprietor of business is treated as creditor to the extent of capital :
(a) Cost Concept
(b) Separate Entity Concept
(c) Money Measurement Concept
(d) Dual Aspect Concept
UP TGT – 2015 - In the case of equity shares are forfeited, the capital account is debited by :
(a) Nominal value of shares
(b) Paid up amount of shares
(c) Called up amount of shares
(d) Uncalled-up amount of shares.
UP TGT – 2015 - Under which method of depreciation the amount of asset is never reduced to zero ?
(a) Straight Line Method
(b) Annuity Method
(c) Written Down Value Method
(d) Sum of Year’s Digit Method
UP TGT – 2015 - Ploughing Back of Profit means:
(a) Retaining the earning in business
(b) Transfer to Reserve
(c) Non payment of Dividend
(d) Illegal income earned.
UP TGT – 2015
Audit – 9 Questions
- 53. An Auditor is :
(a) As Blood Hound
(b) As Watch Dog
(c) As a Cat
(d) As a street Dog
UP TGT – 2015 - 79. Which of the following is not a function of Auditor ?
(a) To detect and prevent the frauds
(b) To write up accounts books.
(c) To examine the arithmetical accuracy of accounts.
(d) To detect and prevent the errors.
UP TGT – 2015 - 85. Chartered Accountants are :
(a) Amateur Auditor
(b) Government Auditor
(c) Professional Auditor
(d) None of the above.
UP TGT – 2015 - 86. Routine checking is done :
(a) By Management
(b) By employees of enterprise
(c) By Auditors
(d) By shareholders
UP TGT – 2015 - 91. Under vouching checking is done :
(a) Books of original entry.
(b) Final Books of Account
(c) Balance Sheet
(d) None of the above.
UP TGT – 2015 - 119. Which of the following is required to compulsory audit :
(a) Co operative Society
(b) Life Insurance Company
(c) Trust
(d) All of the above.
UP TGT – 2015 - 125. To examine the books of accounts is the object of auditing :
(a) Social Object
(b) Primary Object
(c) Subsidiary Object
(d) None of these.
UP TGT – 2015
Statistics – 8 Questions
- 11. Which of the following is not a measure of central tendency :
(a) Mode
(b) Co-relation
(c) Mean
(d) Median - 16. Statistical Mean which is not affected by extreme values is :
(a) Median
(b) Mean
(c) Harmonic mean
(d) Geometric mean - 24. Observation and Survey Investigation are the method of collecting :
(a) Primary Data
(b) Secondary Data
(c) Both Primary and Secondary Data
(d) None of the above. - 55. The median of the data 13, 8, 11, 6, 4, 15, 2, 18 is
(a) 5
(b) 8
(c) 11
(d) 9.5 - 68. Geometric Mean of 04 and 09 will be :
(a) 8
(b) 5
(c) 6
(d) 6.5 - 69. The data obtained from a statistical Magazine are
(a) Primary data
(b) Secondary data
(c) both (a) and (b)
(d) None of these - 99. The word ‘Statistics’ is used as
(a) Singular
(b) Plural
(c) Singulars well as Plural
(d) none of these
Business Organization
- 5. A partnership is created by
(a) Registration
(b) Contract
(c) Circumstances
(d) Law of Succession - 19. Which of the following t characteristics, an entrepreneur should have
(a) Innovation
(b) Risk taking
(c) Initiative
(d) All of the above - 20. What must be the maximum time interval between two consecutive annual general meetings ?
(a) 15 months
(b) 12 months
(c) 09 months
(d) 18 months - 21. Registration of Joint Stock Company is :
(a) Compulsory
(b) Optional
(c) Compulsory for Private Company
(d) none of the above. - 23. Social responsibility of business is
(a) Towards customers
(b) Towards Government
(c) Towards himself
(d) Towards all of above - 25. A Private Limited company can issue
(a) Share Warrant
(b) Share Certificate
(c) Debenture Bond
(d) None of the above - 26. A partnership agreement may be
(a) Oral
(b) Written
(c) Oral and Written
(d) None of the above - 30. Who is required not to hold the statutory meeting ?
(a) A sole trader
(b) A partnership firm
(c) A cooperative society
(d) All of the above - 31. Who elect the directors of a Public Limited Company :
(a) Government
(b) Equity Share holders
(c) Debenture holders
(d) Customers. - 32. The directors of a public limited company are jointly called
(a) Management committee
(b) Statutory committee
(c) Board of directors
(d) None of the above - 33. The liability of a sole proprietor is
(a) Unlimited
(b) Limited to the extent of assets owned by the business.
(c) Limited to the extent of his capital invested in the business.
(d) None of these. - 37. Which of the following statement is ‘False’ :
(a) The minimum number of partners in a partnership is Three
(b) The minimum number of members in a private company is Two
(c) Sole Proprietor cities the oldest form of business organization.
(d) Registration of a Public Limited Company is compulsory. - 39. The minimum number of directors in a private limited company is
(a) Three
(b) Two
(c) Five
(d) Seven - 40. The shares of a Public Limited Company are allotted by :
(a) By shareholders
(b) By Board of Directors
(c) By Managing Director
(d) By Government - 45. The minimum number of members in a Private Limited Company is :
(a) 1
(b) 2
(c) 3
(d) 7 - 49. An association of persons constituted by agreement becomes partnership :
(a) When its purpose is to render some of general welfare of mankind
(b) When its purpose is to carry on some charitable work.
(c) When its purpose is to carry on business for profit motive.
(d) All of the above - 51. Registration of partnership is :
(a) Compulsory under partnership Act
(b) Compulsory under income tax Act
(c) Compulsory under Indian company Act
(d) Optional - 56. Which of the following is not a business activity :
(a) A person sells is old T.V. and earns a profit of Rs. 500/-
(b) Activities of an Insurance Company .
(c) Activities of a Provision Store .
(d) Cooking and selling in a Hotel. - 57. Commerce includes :
(a) Selling and Buying of goods
(b) Business and Industry
(c) Only business and not Industry
(d) Trades and Aids of trade. - 59. Sole-proprietorship form of business organization is not advisable for the enterprise which :
(a) Are large in size
(b) Require small amount of capital
(c) Do not involve heavy risk.
(d) Need personal attention to customers. - 61. What is the objective of public sector enterprise
(a) Social welfare
(b) National interest
(c) Labour welfare
(d) All of the above - 65. A Partnership firm cannot rise funds by
(a) Bank Loan
(b) Government Loan
(c) By issuing Debentures
(d) Partners Loan - 71. The maximum number of partners in a firm has been specified by
(a) Contract Act.
(b) Partnership Act.
(c) Income Tax Act.
(d) None of these. - 67. Stock Exchange is a place where :
(a) Grains are sold and purchased
(b) Listed shares and securities are bought and sold.
(c) Gold and Silver are bought and sold.
(d) None of these. - 73. Marketing deals with the study of :
(a) Sales Management
(b) Consumers Satisfaction.
(c) Consumers buying behavior
(d) All of these - 74. The minimum and maximum number of partners in a firm for a general business is :
(a) 2 and 7
(b) 2 and 10
(c) 7 and 50
(d) 2 and 20 - 76. A statutory meeting in the life of a company takes place only :
(a) Once
(b) Twice
(c) Thrice
(d) Every year - 77. A Public Company can start business:
(a) Without receiving a Certificate of Incorporation.
(b) Immediately on receiving a Certificate of Incorporation .
(c) Only when it receives Certificate of Commencement of Business.
(d) At its own will. - 80. The maximum numbers of business enterprise in India is in
(a) Government Sector
(b) Private Sector
(c) Joint Sector
(d) Cooperative Sector - 92. Promotion of company involves
(a) Discovery of ideas
(b) Detailed investigation of the proposal
(c) Assembling of the factors of production
(d) All of the above - 102. Which of the following document is the most important document of the company
(a) Memorandum of Association
(b) Articles of Association
(c) Prospectus
(d) Audit Report - 103. The oldest form of business organization is
(a) Co-operative Undertaking
(b) Partnership
(c) Sole Proprietorship
(d) Joint Stock Company - 106. Indian Partnership Act was passed in
(a) 1872
(b) 1932
(c) 1956
(d) 1961 - 115. Who was the owner of the public sector enterprises
(a) private
(b) Government
(c) Cooperative
(d) Joint - 117. SEBI was established with its Head Office at
(a) 1992 Delhi
(b) 1988 Lucknow
(c) 1988 Mumbai
(d) 1998 Kolkata
Management
- 17. Managerial Control is done by :
(a) Lower level managers
(b) Middle level managers
(c) Top level managers
(d) All level managers - 28. Line and staff organization is most suitable for :
(a) Small enterprise
(b) Large enterprise
(c) Medium sized enterprise
(d) Cottage enterprise - 43. Decentralisation is done by
(a) Top Management
(b) Middle Management
(c) Lower Management
(d) Bottom Management - 48. ‘X’ and ‘Y’ Theory of Motivation has been propounded by :
(a) Maslow
(b) Mc Gregor
(c) Herzberg
(d) Ouchi - 84. Which of the following statement is not correct :
(a) Control is a continuous process.
(b) Control is a Management function.
(c) Control always relates to past function
(d) Control is exercised at all levels. - 113. Efficiency of worker is increased in
(a) Time wage system
(b) Efficiency wage plan
(c) Piece wage plan
(d) All of the above
Economics
- 4. The factor of production which tends to be most perishable is
(a) Land
(b) Labour
(c) Capital
(d) Enterprise - 10. According to robins economics is
(a) a social science
(b) an individual science
(c) both (a) and (b)
(d) none of the above - 13. Which of the following is the theory of determination of money value :
(a) Commodity Theory of Money
(b) State Theory of Money
(c) Quantity Theory of Money
(d) All of the above - 41. Income distribution is done through public expenditure on
(a) Industrial Development
(b) Agricultural Development
(c) Social Services
(d) none of the above - 42. National income is determined by which method
(a) Census of Production Method
(b) Census of Income Method
(c) Census of Expenditure Method
(d) All of the above - 64. When prices the demand also increases for certain goods this phenomenon is called
(a) Marshal Paradox
(b) Giffen Paradox
(c) velbon Paradox
(d) None of these - 89. Cost which is not effected by change in quantity of production is called :
(a) Total Cost
(b) Fixed Cost
(c) Variable Cost
(d) Opportunity Cost - 90. Domestic use of official ‘Laptop’ is :
(a) Embezzlement of labour
(b) Embezzlement of goods
(c) Embezzlement of property
(d) Embezzlement of cash - 93. Who is called Father of Modern Economics ?
(a) Malthus
(b) Adam Smith
(c) Robbins
(d) Marshall - 98. Ricardo is famous for
(a) Population Theory
(b) Cost Theory
(c) Rent Theory
(d) Profit Theory
Money -5
- 35. What is the secondary function of money?
(a) Medium of Exchange
(b) Measure of Price
(c) Basis of deferred payments
(d) None of the above. - 72. Who said that “Bade money tends to drive out good money out of circulation?
(a) Robbins
(b) Gresham
(c) J.K. Mehta
(d) Malthus - 107. When the metallic value of coin is less than to its face value, the money is called
(a) Standard Money
(b) Token Money
(c) Fiat Money
(d) Paper Money - 108. Barter System means :
(a) Goods sold on cash
(b) Good sold on credit
(c) Exchange of goods for goods
(d) Goods sold on installments. - 120. Which of the following is not a function of money ?
(a) Exchange of commodity with commodity
(b) Store of value
(c) Medium of Exchange
(d) Basis of deferred payments.
Banking
- 8. State Bank of India came into existence in the year:
(a) 1935
(b) 1949
(c) 1955
(d) 1969 - 9. In which year Reserve Bank of India was established:
(a) 1935
(b) 1949
(c) 1955
(d) 1969 - 46. Which of the following is a function of Central Bank :
(a) Issuing currency notes
(b) Controlling credit
(c) Controlling commercial banks
(d) All of the above. - 54. Bank Rate is determined by the
(a) Reserve Bank of India
(b) Government of India
(c) State Government
(d) All of the above. - 62. The issue of one rupee currency note in India is liability of the
(a) Issue department of RBI
(b) Government of India
(c) State Bank of India
(d) Banking department of RBI - 75. Which one of the following is not a function of Central Bank :
(a) Custodian of Foreign Exchange Funds
(b) Monopoly of Note Issue
(c) Credit Creation
(d) Lender of Last Resort. - 116. Which of the following is the Central Bank of India :
(a) Central Bank of India
(b) Reserve Bank of India
(c) State Bank of India
(d) Indian Bank - 123. Bank Rate is on which :
(a) Commercial Banks provide loans to public.
(b) State Bank Provides loans to commercial banks
(c) Central Government provides loans to State Government.
(d) Reserve Bank provides loans to Commercial Banks
Indian Economy
- 3. When the shares of a public sector industry sold in the market, it is called
(a) Globalization
(b) Privatization
(c) Disinvestment
(d) Liberalization
UP TGT – 2015 - 14. Inflation is due to :
(a) Excessive Money Issue
(b) Decrease in Production.
(c) Deficit Budget
(d) All of the along above - 50. Normally, General Budget of the country is presented in the Parliament by the:
(a) Prime Minister
(b) Speaker of the House
(c) Finance Minister
(d) President of India - 63. During the inflation, the value of money
(a) Increases
(b) Decreases
(c) Constant
(d) None of the above - 66. Who propounded Population Theory ?
(a) Mill
(b) Hicks
(c) Malthus
(d) Adam Smith - 104. In the beginning on account of rationalisation
(a) Increases Unemployment
(b) Increases Employment
(c) Retrenchment of workers
(d) None of the above - 110. Name the Indian who won the Noble Prize in economics
(a) Prof. J.K. Mehta
(b) Dr. Manmohan singh
(c) Prof. Amartya Sen
(d) Dr. Pranab Mukherjee - 118. The subject which deals with the Income and Expenditure of Government is known as :
(a) National Income
(b) Gross Domestic Production (G.D.P.)
(c) Public Finance
(d) Economics System - 121. According to Malthus, food supply increases in :
(a) Arithmetical Progression
(b) Average Progression
(c) Geometrical Progression
(d) None of these
- Under writing commission is payable on which basis :
(a) The issue price of shares
(b) The normal price of shares
(c) The market price of shares
(d) The application money received on shares. - A and B are partners. A dies in an accident
(a) The firm would be dissolved
(b) The partnership would be dissolved
(c) Both firm and partnership would be dissolved
(d) None of the above - When the shares of a public sector industry sold in the market, it is called
(a) Globalization
(b) Privatization
(c) Disinvestment
(d) Liberalization - The factor of production which tends to be most perishable is
(a) Land
(b) Labour
(c) Capital
(d) Enterprise - A partnership is created by
(a) Registration
(b) Contract
(c) Circumstances
(d) Law of Succession - 6. In case of Liquidation of a company, which of the following is repayable in the last :
(a) Unsecured Creditors
(b) Equity Shareholders
(c) Preference Shareholders
(d) Debenture holders - A partnership agreements ends when
(a) on the retirement of a partner
(b) on the death of a partner
(c) on the insolvency of a partner
(d) All of the above - State Bank of India came into existence in the year :
(a) 1935
(b) 1949
(c) 1955
(d) 1969 - In which year Reserve Bank of India was established :
(a) 1935
(b) 1949
(c) 1955
(d) 1969 - According to robins economics is
(a) a social science
(b) an individual science
(c) both (a) and (b)
(d) none of the above - Which of the following is not a measure of central tendency :
(a) Mode
(b) Co-relation
(c) Mean
(d) Median - Balance in Cash Book shows :
(a) Amount deposited in bank
(b) Difference between Income and Expenses
(c) Total real Income
(d) Available amount of cash. - Which of the following is the theory of determination of money value :
(a) Commodity Theory of Money
(b) State Theory of Money
(c) Quantity Theory of Money
(d) All of the above - Inflation is due to :
(a) Excessive Money Issue
(b) Decrease in Production.
(c) Deficit Budget
(d) All of the along above. - Wages paid for installation of a new machine debited to wages account is an error of :
(a) Omission
(b) Principle
(c) Additions
(d) Wrong Posting - Statistical Mean which is not affected by extreme values is :
(a) Median
(b) Mean
(c) Harmonic mean
(d) Geometric mean - Managerial Control is done by :
(a) Lower level managers
(b) Middle level managers
(c) Top level managers
(d) All level managers - Every shareholder is
(a) Company’s Agent
(b) Company’s Owner
(c) Company’s Lender
(d) Company’s Customers - Which of the following t characteristics, an entrepreneur should have
(a) Innovation
(b) Risk taking
(c) Initiative
(d) All of the above - What must be the maximum time interval between two consecutive annual general meetings ?
(a) 15 months
(b) 12 months
(c) 09 months
(d) 18 months - Registration of Joint Stock Company is :
(a) Compulsory
(b) Optional
(c) Compulsory for Private Company
(d) none of the above. - Which of the following is not prepared in financial statement of a non – trading concern
(a) Receipt and Payment Account
(b) Income & Expenditure Account
(c) Trading Account
(d) Balance Sheet - Social responsibility of business is
(a) Towards customers
(b) Towards Government
(c) Towards himself
(d) Towards all of above - Observation and Survey Investigation are the method of collecting :
(a) Primary Data
(b) Secondary Data
(c) Both Primary and Secondary Data
(d) None of the above. - A Private Limited company can issue
(a) Share Warrant
(b) Share Certificate
(c) Debenture Bond
(d) None of the above - A partnership agreement may be
(a) Oral
(b) Written
(c) Oral and Written
(d) None of the above - Which of the following is not a business transaction ?
(a) Bought the furniture of Rs. 1,00,000 for business.
(b) Paid Son’s fees from his personal bank account : Rs. 20,000
(c) Paid of salaries of employees : Rs.50,000
(d) Purchased goods for business for Rs. 75,000 - Line and staff organization is most suitable for :
(a) Small enterprise
(b) Large enterprise
(c) Medium sized enterprise
(d) Cottage enterprise - What is the amount of Gross Profit or Loss, when cost of goods sold Rs. 79,000, Sales Rs. 1,10,000, Purchase Rs. 30,000 :
(a) Rs. 80,000(profit)
(b) Rs. 31,000(profit)
(c) Rs. 49,000(profit)
(d) Rs. 1,000(loss) - Who is required not to hold the statutory meeting ?
(a) A sole trader
(b) A partnership firm
(c) A cooperative society
(d) All of the above - Who elect the directors of a Public Limited Company :
(a) Government
(b) Equity Share holders
(c) Debenture holders
(d) Customers. - The directors of a public limited company are jointly called
(a) Management committee
(b) Statutory committee
(c) Board of directors
(d) None of the above - The liability of a sole proprietor is
(a) Unlimited
(b) Limited to the extent of assets owned by the business.
(c) Limited to the extent of his capital invested in the business.
(d) None of these. - The liability of share holders of a Public Limited Company is limited to the :
(a) Paid-up value of share.
(b) Nominal value of share.
(c) Market value of the share
(d) None of these. - What is the secondary function of money ?
(a) Medium of Exchange
(b) Measure of Price
(c) Basis of deferred payments
(d) None of the above. - Ploughing Back of Profit means :
(a) Retaining the earning in business
(b) Transfer to Reserve
(c) Non payment of Dividend
(d) Illegal income earned. - Which of the following statement is ‘False’ :
(a) The minimum number of partners in a partnership is Three
(b) The minimum number of members in a private company is Two
(c) Sole Proprietor cities the oldest form of business organization.
(d) Registration of a Public Limited Company is compulsory. - An expenditure is called capital expenditure, when :
(a) The amount is huge
(b) The amount is paid in lumpsum
(c) That expenditure is intended to benefit in the future period .
(d) That expenditure is intended to benefit in the current period only. - The minimum number of directors in a private limited company is
(a) Three
(b) Two
(c) Five
(d) Seven - The shares of a Public Limited Company are allotted by :
(a) By shareholders
(b) By Board of Directors
(c) By Managing Director
(d) By Government - Income distribution is done through public expenditure on
(a) Industrial Development
(b) Agricultural Development
(c) Social Services
(d) None of the above - National income is determined by which method
(a) Census of Production Method
(b) Census of Income Method
(c) Census of Expenditure Method
(d) All of the above - Decentralisation is done by
(a) Top Management
(b) Middle Management
(c) Lower Management
(d) Bottom Management - Under which method of depreciation the amount of asset is never reduced to zero ?
(a) Straight Line Method
(b) Annuity Method
(c) Written Down Value Method
(d) Sum of Year’s Digit Method - The minimum number of members in a Private Limited Company is :
(a) 1
(b) 2
(c) 3
(d) 7 - Which of the following is a function of Central Bank :
(a) Issuing currency notes
(b) Controlling credit
(c) Controlling commercial banks
(d) All of the above. - Which of the following is not Current Liability :
(a) Bank Overdraft
(b) Debentures
(c) Outstanding Salary
(d) Bills Payable - ‘X’ and ‘Y’ Theory of Motivation has been propounded by :
(a) Maslow
(b) Mc Gregor
(c) Herzberg
(d) Ouchi - An association of persons constituted by agreement becomes partnership :
(a) When its purpose is to render some of general welfare of mankind
(b) When its purpose is to carry on some charitable work.
(c) When its purpose is to carry on business for profit motive.
(d) All of the above - Normally, General Budget of the country is presented in the Parliament by the:
(a) Prime Minister
(b) Speaker of the House
(c) Finance Minister
(d) President of India - Registration of partnership is :
(a) Compulsory under partnership Act
(b) Compulsory under income tax Act
(c) Compulsory under Indian company Act
(d) Optional - Trial Balance is prepared to check :
(a) Financial Liquidity Position of the business
(b) Financial Result of the business
(c) Amount of purchases & Sales of the business.
(d) Arithmetical accuracy of accounting entires. - 53. An Auditor is :
(a) As Blood Hound
(b) As Watch Dog
(c) As a Cat
(d) As a street Dog - Bank Rate is determined by the
(a) Reserve Bank of India
(b) Government of India
(c) State Government
(d) All of the above. - The median of the data 13, 8, 11, 6, 4, 15, 2, 18 is
(a) 5
(b) 8
(c) 11
(d) 9.5 - Which of the following is not a business activity :
(a) A person sells is old T.V. and earns a profit of Rs. 500/-
(b) Activities of an Insurance Company .
(c) Activities of a Provision Store .
(d) Cooking and selling in a Hotel. - Commerce includes :
(a) Selling and Buying of goods
(b) Business and Industry
(c) Only business and not Industry
(d) Trades and Aids of trade. - The basic Principles of Accounting is “debit the receiver and credit the giver” applies to :
(a) Profit and Loss Account
(b) Real Account
(c) Personal Account
(d) Cash Account - Sole-proprietorship form of business organization is not advisable for the enterprise which :
(a) Are large in size
(b) Require small amount of capital
(c) Do not involve heavy risk.
(d) Need personal attention to customers. - Account relating to Income and Expenditure and Profit and Loss is called :
(a) Real Account
(b) Nominal Account
(c) Personal Account
(d) None of the above - What is the objective of public sector enterprise
(a) Social welfare
(b) National interest
(c) Labour welfare
(d) All of the above - The issue of one rupee currency note in India is liability of the
(a) Issue department of RBI
(b) Government of India
(c) State Bank of India
(d) Banking department of RBI - During the inflation, the value of money
(a) Increases
(b) Decreases
(c) Constant
(d) None of the above. - When prices the demand also increases for certain goods this phenomenon is called
(a) Marshal Paradox
(b) Giffen Paradox
(c) velbon Paradox
(d) None of these - A Partnership firm cannot rise funds by
(a) Bank Loan
(b) Government Loan
(c) By issuing Debentures
(d) Partners Loan - Who propounded Population Theory ?
(a) Mill
(b) Hicks
(c) Malthus
(d) Adam Smith - Stock Exchange is a place where :g
(a) Grains are sold and purchased
(b) Listed shares and securities are bought and sold.
(c) Gold and Silver are bought and sold.
(d) None of these. - Geometric Mean of 04 and 09 will be :
(a) 8
(b) 5
(c) 6
(d) 6.5 - The data obtained from a statistical Magazine are
(a) Primary data
(b) Secondary data
(c) Both (a) and (b)
(d) None of these - In the absence of any agreement the partner gets
(a) Equal share in profit & loss
(b) 12% interest on capital
(c) 18% interest on loan
(d) all of the above - The maximum number of partners in a firm has been specified by
(a) Contract Act.
(b) Partnership Act.
(c) Income Tax Act.
(d) None of these. - Who said that “Bade money tends to drive out good money out of circulation?
(a) Robbins
(b) Gresham
(c) J.K. Mehta
(d) Malthus - Marketing deals with the study of :
(a) Sales Management
(b) Consumers Satisfaction.
(c) Consumers buying behavior
(d) All of these - The minimum and maximum number of partners in a firm for a general business is :
(a) 2 and 7
(b) 2 and 10
(c) 7 and 50
(d) 2 and 20 - Which one of the following is not a function of Central Bank :
(a) Custodian of Foreign Exchange Funds
(b) Monopoly of Note Issue
(c) Credit Creation
(d) Lender of Last Resort. - A statutory meeting in the life of a company takes place only :
(a) Once
(b) Twice
(c) Thrice
(d) Every year - A Public Company can start business:
(a) Without receiving a Certificate of Incorporation.
(b) Immediately on receiving a Certificate of Incorporation .
(c) Only when it receives Certificate of Commencement of Business.
(d) At its own will. - Realisation Account is prepared by a partnership firm at the time of :
(a) Retirement of a Partner
(b) Death of a Partner
(c) Admission of a new Partner
(d) Dissolution of the firm. - Which of the following is not a function of Auditor ?
(a) To detect and prevent the frauds
(b) To write up accounts books.
(c) To examine the arithmetical accuracy of accounts.
(d) To detect and prevent the errors. - The maximum numbers of business enterprise in India is in
(a) Government Sector
(b) Private Sector
(c) Joint Sector
(d) Cooperative Sector - Outstanding salary give within Trial Balance will be shown in the :
(a) Trading Account and Balance Sheet
(b) Profit & Loss A/c and Balance Sheet
(c) Liabilities side of Balance Sheet
(d) Asset side of Balance Sheet. - Right Shares mean the shares which are :
(a) Issued to promoters of the Company
(b) Issued to Vendors of the Company
(c) Issued to directors of the Company
(d) Issued to existing shareholders of the company. - A businessman has got practice to value opening stock 10% above cost if the inflated price of opening stock is Rs. 27,500, what is the original cost ?
(a) Rs. 30,000
(b) Rs. 24,000
(c) Rs. 25,000
(d) Rs. 22,500 - Which of the following statement is not correct :
(a) Control is a continuous process.
(b) Control is a Management function.
(c) Control always relates to past function
(d) Control is exercised at all levels. - Chartered Accountants are :
(a) Amateur Auditor
(b) Government Auditor
(c) Professional Auditor
(d) None of the above. - Routine checking is done :
(a) By Management
(b) By employees of enterprise
(c) By Auditors
(d) By shareholders - Match List I with List II and select your answer from the code given :
LIST A
(P) Partner’s Loan
(Q) Death of a Partner
(R) Loss in business
(S) Revaluation A/c
LIST B
(i) Debit balance of Profit & Loss A/c
(ii) 6% Interest
(iii) Joint Life Policy
(iv) Profit and Loss Adjustment A/c
P Q R S
(a) (ii) (iii) (i) (iv)
(b) (i) (ii) (iii) (iv)
(c) (iii) (ii) (i) (iv)
(d) (iv) (i) (ii) (iii) - In the event of death of a partner, joint life policy amount should be credited capital accounts of
(a) All the partners to profit & loss sharing ratio
(b) Remaining partners in profit & loss sharing ratio
(c) Only in the account of deceased partner
(d) None of the above - Cost which is not effected by change in quantity of production is called :
(a) Total Cost
(b) Fixed Cost
(c) Variable Cost
(d) Opportunity Cost - Domestic use of official ‘Laptop’ is :
(a) Embezzlement of labour
(b) Embezzlement of goods
(c) Embezzlement of property
(d) Embezzlement of cash - Under vouching checking is done :
(a) Books of original entry.
(b) Final Books of Account
(c) Balance Sheet
(d) None of the above. - Promotion of company involves
(a) Discovery of ideas
(b) Detailed investigation of the proposal
(c) Assembling of the factors of production
(d) All of the above - Who is called Father of Modern Economics ?
(a) Malthus
(b) Adam Smith
(c) Robbins
(d) Marshall - Generally auditing is not required for small scale sole proprietorship business because :
(a) Its scope is limited
(b) Its proprietor has full control on it.
(c) Legally it is not necessary
(d) All of the above. - Which of the following equation is not correct ?
(a) Purchase + Opening Stock – Cost of goods sold = Closing stock
(b) Opening stock + Purchase – Closing stock = Cost of goods sold
(c) Closing Stock + Cost of good sold – Purchase = Opening Stock
(d) Cost of goods sold – Closing Stock – Purchase = Opening Stock - Which of the following is not a Fixed Asset
(a) Building
(b) Furniture
(c) Cash
(d) Machinery - Under Intensive Checking :
(a) All books of accounts are examined.
(b) Specify books of accounts are examined.
(c) Only cash book is examined
(d) None of the above - Ricardo is famous for
(a) Population Theory
(b) Cost Theory
(c) Rent Theory
(d) Profit Theory - The word ‘Statistics’ is used as
(a) Singular
(b) Plural
(c) Singulars well as Plural
(d) None of these - Short workings is equal to :
(a) Minimum Rent + Royalties
(b) Royalties – Minimum Rent
(c) Minimum Rent – Royalties
(d) Royalties – Amount paid to Landlord - If Current Ratio is 2.4 : 1 and Current Liabilities are Rs. 20,000 what will be the amount of Current Assets ?
(a) Rs. 44,000
(b) Rs. 48,000
(c) Rs. 50,000
(d) Rs. 8,333 - Which of the following document is the most important document of the company
(a) Memorandum of Association
(b) Articles of Association
(c) Prospectus
(d) Audit Report - The oldest form of business organization is
(a) Co-operative Undertaking
(b) Partnership
(c) Sole Proprietorship
(d) Joint Stock Company - In the beginning on account of rationalisation
(a) Increases Unemployment
(b) Increases Employment
(c) Retrenchment of workers
(d) None of the above - Garner Vs Murray rule applies when
(a) all partners are insolvent
(b) all partners are solvent
(c) some partners are insolvent
(d) None of the above - Indian Partnership Act was passed in
(a) 1872
(b) 1932
(c) 1956
(d) 1961 - When the metallic value of coin is less than to its face value, the money is called
(a) Standard Money
(b) Token Money
(c) Fiat Money
(d) Paper Money - Barter System means :
(a) Goods sold on cash
(b) Good sold on credit
(c) Exchange of goods for goods
(d) Goods sold on installments. - FIFO and LIFO are the pricing methods of :
(a) Fixed Assets
(b) Investments
(c) Issued Raw Materials
(d) All of the above - Name the Indian who won the Noble Prize in economics
(a) Prof. J.K. Mehta
(b)Dr. Manmohan singh
(c) Prof. Amartya Sen
(d) Dr. Pranab Mukherjee - Depreciation is charged on :
(a) Current Asset
(b) Fixed Asset
(c) Intangible Asset
(d) Tangible Asset. - Goodwill is :
(a) An intangible asset
(b) A current asset
(c) A fixed asset
(d) A personal asset - Efficiency of worker is increased in
(a) Time wage system
(b) Efficiency wage plan
(c) Piece wage plan
(d) All of the above - Debit is equal to credit is :
(a) Occasionally true in accounting
(b) Occasionally wrong in accounting
(c) Always true in accounting
(d) True in special circumstances. - Who was the owner of the public sector enterprises
(a) private
(b) Government
(c) Cooperative
(d) Joint - Which of the following is the Central Bank of India :
(a) Central Bank of India
(b) Reserve Bank of India
(c) State Bank of India
(d) Indian Bank - SEBI was established with its Head Office at
(a) 1992 Delhi
(b) 1988 Lucknow
(c) 1988 Mumbai
(d) 1998 Kolkata - The subject which deals with the Income and Expenditure of Government is known as :
(a) National Income
(b) Gross Domestic Production (G.D.P.)
(c) Public Finance
(d) Economics System - Which of the following is required to compulsory audit :
(a) Co operative Society
(b) Life Insurance Company
(c) Trust
(d) All of the above. - Which of the following is not a function of money ?
(a) Exchange of commodity with commodity
(b) Store of value
(c) Medium of Exchange
(d) Basis of deferred payments. - According to Malthus, food supply increases in :
(a) Arithmetical Progression
(b) Average Progression
(c) Geometrical Progression
(d) None of these - According to which of the following accounting concept, even proprietor of business is treated as creditor to the extent of capital :
(a) Cost Concept
(b) Separate Entity Concept
(c) Money Measurement Concept
(d) Dual Aspect Concept - Bank Rate is on which :
(a) Commercial Banks provide loans to public.
(b) State Bank Provides loans to commercial banks
(c) Central Government provides loans to State Government.
(d) Reserve Bank provides loans to Commercial Banks - In the case of equity shares are forfeited, the capital account is debited by :
(a) Nominal value of shares
(b) Paid up amount of shares
(c) Called up amount of shares
(d) Uncalled-up amount of shares. - To examine the books of accounts is the object of auditing :
(a) Social Object
(b) Primary Object
(c) Subsidiary Object
(d) None of these.