Tripura PGT Commerce Pattern Analysis
| Subjects | Tripura PGT Commerce – 2017 |
Tripura PGT Commerce – 2018 |
| Financial Accounting | 40 | 25 |
| Corporate Accounting | 17 | 30 |
| Cost & Management Accounting | 13 | 15 |
| Advance & Miscellaneous Accounting | 3 | 5 |
| Business Studies | 11 | 9 |
| Business Finance | 9 | 8 |
| Business Management | 13 | 13 |
| Auditing | 13 | 15 |
| Business Economics | 16 | 15 |
| Business Mathematics and Statistics | 15 | 15 |
| Total No. of Questions | 150 | 150 |
Tripura PGT Commerce – 2017
| S. No | Subject | No. of MCQs | S. No | Subject | No. of MCQs |
| 1 | Financial Accounting | 40 | 2 | Corporate Accounting | 17 |
| 3 | Cost & Management Accounting | 13 | 4 | Advance & Miscellaneous Accounting | 3 |
| 5 | Business Studies | 11 | 6 | Finance | 9 |
| 7 | Business Management | 13 | 8 | Auditing | 13 |
| 9 | Business Economics | 16 | 10 | Business Mathematics and Statistics | 15 |
| Total No. of Questions = 150 | |||||
Financial Accounting
- Which one of the following is an exception to the convention of conservatism?
(a) Making provision to doubtful debts in anticipation of actual bad debtors
(b) Valuation of stock at market price or cost price whichever is higher
(c) Charging of small capital item as revenue
(d) Adopting written-down value method of depreciation as against straight-line method - Which one of the following is correct accounting equation?
(a) Asset = Owner’s equity
(b) Asset = Liabilities + Owner’s equity
(c) Asset = Liabilities – Owner’s equity
(d) Asset + Liabilities = Owner’s equity - Which one of the following pairs is not a perfect match?
(a) Suppression of invoice – Window dressing
(b) Overcharging of depreciation – Secret reserve
(c) Omission of cash receipts from debtors—Understatement of sales
(d) Omission of credit sales— Understatement of debtors - Which one of the following is correct with respect to going concern convention?
(a) The enterprise is not going to terminate its operation in the period ahead
(b) The enterprise may go out of business in the next accounting period
(c) The enterprise may not divert or diversify its operational spheres
(d) The enterprise may not revalue its asset during the current accounting period - Which one of the following items is considered as revenue expenditure?
(a) Expenditure by the way of maintenance for increased productivity
(b) Repair of a car engine for enhancement of operational life
(c) Complete overhaul of a machine, spending around 22% of its value
(d) Changing a small component of a machine to maintain its operational efficiency - During shifting to their new building, M/s XYZ Ltd. has spent R 20,000 for pulling down the old structure and Rs. 2,000 for shifting of stock to new building. These expenditures are to be classified as
(a) Capital expenditure
(b) Revenue expenditure
(c) Capital expenditure and revenue expenditure respectively
(d) Deferred revenue expenditure - Preparation of Trial Balance helps mainly in
(a) Summarizing business transactions
(b) Verifying that ‘GAAP’ has been observed
(c) Finalizing the sources and uses of fund’s statement
(d) Locating errors, if any, in the books of accounts - If Opening stock = Rs. 2,45,000 Purchase = Rs. 15,00,000 Sales = Rs. 17,40,000 and the rate of gross profit = 20% on cost of goods sold, then the closing stock would be
(a) Rs. 3,53,000
(b) Rs. 2,95,000
(c) Rs. 2,45,000
(d) Rs. 1,95,000 - Income earned but not yet received is treated as
(a) Asset
(b) Liability
(c) Loss
(d) Capital - The capital of a firm is Rs. 80,000. The reasonable return in the industry is 7•5%. If the profits earned by the firm during last five years were Rs. 8,000, Rs. 9,000, Rs. 7,000, Rs. 8,500 and Rs. 10,000, then the super profit of the firm is
(a) Rs. 2,000
(b) Rs. 2,500
(c) Rs. 3,000
(d) Rs. 3,500 - A and B are the partners in a firm sharing profit and losses in the ratio of 2 : 3. C, a new partner is admitted for 1/4th share. The new profit sharing ratio of A, B and C would be
(a) 1 : 1 : 1
(b) 2 : 3 : 4
(c) 1 : 2 : 2
(d) 6 : 9 : 5 - Provisions are amounts set aside out of profit and other surpluses for
(a) Meeting a liability, the amount which can be determined with exact figure
(b) Any known liability which the amount cannot be determined with substantial accuracy
(c) Meeting an eventuality arising out of revaluation of asset in ordinary course of business
(d) Meeting a liability arising out of arbitration - Which of the following fixed assets is not depreciated in the ordinary circumstances?
(a) Plant and machinery
(b) Building
(c) Land
(d) Equipments - The purchase price of a software that will be used for more than 12 months should be regarded as a/an
(a) Revenue expenditure
(b) Capital expenditure
(c) Long-term expense
(d) Accounting period expense - Cost of a fixed asset – Accumulated depreciation expenses of the fixed asset =
(a) Book value of the fixed asset
(b) Market value of the fixed asset
(c) Historical cost of the fixed asset
(d) Recoverable amount of the fixed asset - Which of the following result in unadjusted cash book balance?
(a) Outstanding cheque
(b) Unpresented cheque
(c) Deposit in transit
(d) Omission of bank charges - In the bank reconciliation statement, ‘deposit in transit’ is usually
(a) Subtracted from bank balance
(b) Added to bank balance
(c) Added to cash book balance
(d) Subtracted from cash book balance - From the following adjusting double entries, find the correct one for prepaid expenses.
(a) Debit = Expenses, Credit =Prepaid expenses
(b) Debit = Prepaid expenses, Credit = Expenses
(c) Debit = Cash, Credit = Prepaid expenses
(d) Debit = Expenses, Credit = Cash - Which of the following is a common base for preparing a Trial Balance?
(a) Ledger Account
(b) General Journal
(c) Specialized Journal
(d) Balance Sheet - When is the Trial Balance generally prepared?
(a) Frequently during the year
(b) At the end of accounting period
(c) At the end of a month
(d) At the end of a year - Mention the correct sequence of accounting process.
(a) Communicating – Recording –Identifying
(b) Recording – Communicating –Identifying
(c) Identifying – Recording –Communicating
(d) Identifying – Communicating –Recording - ‘Equity’ means
(a) Cash from the business
(b) Liability of a business
(c) Owner’s claim on total asset
(d) Owner’s claim on total liabilities - What implies for double entry?
(a) Recording entries in journal
(b) Recording entries in ledger account
(c) Recording two aspects of every transaction
(d) Recording every transaction in books - Find the nominal account from the following.
(a) Machinery A/c
(b) Building A/c
(c) Creditors A/c
(d) Rent expenses A/c - The written agreement of partnership is most commonly referred as
(a) Agreement
(b) Partnership deed
(c) Partnership account
(d) Partnership act - Which is the correct double entry for realisation of profit at the time of dissolution of partnership?
(a) Debit Realisation, Credit Bank
(b) Debit Bank, Credit Realisation
(c) Debit Realisation, Credit Partner’s Capital
(d) None of the above - What will happen if bad debt is not recorded by a firm by mistake?
(a) Net profit would decrease
(b) Net profit would increase
(c) Gross profit would overstate
(d) Gross profit would understate - Identify the correct formula to ascertain the closing balance of capital.
(a) Opening capital + Net income –Drawing – Asset = Closing capital
(b) Closing capital = Opening capital + Net loss – Drawing
(c) Closing capital = Opening capital + Asset + Income –Expense
(d) Closing capital = Opening capital + Net income – Drawing - An entry which is made on both sides of a cash book is called
(a) Cash entry
(b) Contra entry
(c) Payment entry
(d) Compound entry - Establishment expenses of a new machine will be debited to
(a) Expenses A/c
(b) Profit and Loss A/c
(c) Machinery A/c
(d) None of the above - Goodwill is
(a) Floating asset
(b) Wasting asset
(c) Fictitious asset
(d) Intangible asset - New profit-sharing ratio is calculated at the time of
(a) Admission of a new partner
(b) Retirement of a partner
(c) Death of a partner
(d) All of the above - Consider the following : ‘Amortization’ generally refers to writing off the value of
1. Tangible assets
2. Intangible assets
3. Factitious assets
Which of the above is/are correct?
(a) 1 and 2
(b) 2 and 3
(c) 1 only
(d) 2 only - The term ‘current asset’ does not cover
(a) Car
(b) Debtors
(c) Stock
(d) Prepaid expenses - The balance of fixed assets of XYZ Ltd. at cost at the end of 2015 and 2016 were Rs. 5,70,800 and Rs. 6,15,300 respectively. During the year 2016, a machinery costing Rs. 60,000 was sold. Determine purchase of fixed assets.
(a) Rs. 1,04,500
(b) Rs. 1,40,500
(c) Rs. 1,64,500
(d) None of the above - A sale of Rs. 10,000 to Mr. Ram was entered as a sale to Mr. Rahim. This is an example of
(a) Error of omission
(b) Error of commission
(c) Compensating error
(d) Error of principle - A company purchases goods but does not pay supplier immediately and record them as
(a) Accounts payable
(b) Accounts receivable
(c) Current liabilities
(d) Accumulated liabilities - What is the method, in which an amount equal to the amount written off as depreciation is invested in outside securities in order to facilitate replacement of an asset at the expiry of its life period, called?
(a) Annuity method
(b) Sinking fund method
(c) Replacement method
(d) Depletion method - During a period of rising prices, which inventory pricing method will result in lower current assets?
(a) LIFO
(b) FIFO
(c) Simple average method
(d) None of the above - Closing stock Rs. 53,400, cost of goods sold Rs. 75,000, gross profit Rs. 5,000, purchase Rs. 82,000. What is the amount of opening stock?
(a) Rs. 46,400
(b) Rs. 41,400
(c) Rs. 60,400
(d) Rs. 55,400
Corporate Accounting
- Mr. Maniram, who holds 100 shares of Rs.10 each, fails to pay a final call of Rs. 2. The directors forfeited all the shares and subsequently reissued 50 shares at Rs. 6 as fully paid. The amount to be transferred to capital reserve would be
(a) Rs. 200
(b) Rs. 300
(c) Rs. 400
(d) Rs. 800 - XYZ Ltd. issues 3000, 15% debentures of Rs. 100 each at a discount of 7•5% repayable at a premium of 5% at the end of 5 years. The loss on issue of debentures will be
(a) Rs. 22,500
(b) Rs. 30,000
(c) Rs. 37,500
(d) Rs. 45,000 - A company can reissue its forfeited shares
(a) At a premium
(b) At a face value
(c) At a discount
(d) All of the above - Discount on issue of share A/c is shown at the
(a) Debit side of P&L A/c
(b) Asset side of Balance Sheet
(c) Liabilities side of Balance Sheet
(d) None of the above - What is reduction of paid-up capital called?
(a) External reconstruction
(b) Internal reconstruction
(c) Reorganisation
(d) Redemption of capital - Which one of the following is best option to test long-term solvency?
(a) Liquidity ratio
(b) Debt-equity ratio
(c) Capital gearing ratio
(d) Rate of return - What is the accepted standard for current ratio?
(a) 2 : 1
(b) 1 : 2
(c) 2 : 3
(d) 1 : 3 - Comparison of financial statements highlights the trend of the _____ of business.
(a) Financial position
(b) Performance
(c) Profitability
(d) All of the above - Analysis of financial statement comprises
(a) Balance Sheet
(b) P&L A/c
(c) Trading A/c
(d) All of the above - Which of the following statements are true?
1. Financial statements are only interim report.
2. Financial statements are also known as annual report.
3. Financial statements are historic.
(a) Both 1 and 2
(b) Both 1 and 3
(c) Both 2 and 3
(d) All of the above - Cash-flow statement is also known as
(a) Statement of changes in financial position on cash basis
(b) Statement of accounting for variation of cash
(c) Both (a) and (b)
(d) None of the above - Which of the following statements is/are true?
1. Cash flow reveals only the inflow of cash.
2. Cash flow reveals only the outflow of cash.
3. Cash flow is a substitute of income statement.
4. Cash-flow statement is not a replacement of funds flow statement.
(a) Only 1
(b) Only 2
(c) Both 2 and 3
(d) Only 4 - Provision for taxation is treated as
(a) Current liability
(b) An appropriation of profit
(c) Either (a) or (b)
(d) None of the above - Statement of changes in working capital is separately prepared in
(a) Cash-flow statement
(b) Funds flow statement
(c) Both (a) and (b)
(d) None of the above - While preparing the cash-flow statement, non-cash items and non-operating items are not required to be adjusted under
(a) Indirect method
(b) Direct method
(c) Both (a) and (b)
(d) None of the above - Which of the following are sources of fund?
1. Issue of bonus share
2. Issue of shares against purchase of fixed asset
3. Conversion of debentures into shares
4. Conversion of loan into shares
(a) 1 and 3
(b) 1 and 4
(c) 1, 2, 3 and 4
(d) None of the above - In Balance Sheet, sum of retained earnings and common stocks are considered as
(a) Preferred equity
(b) Due equity
(c) Common perpetuity
(d) Common equity
Cost & Management Accounting
- The minimum sale below which a project would not be recommended is called
(a) Profit point
(b) Break-even point
(c) Cut-off point
(d) None of the above - Objective of cost accounting is to
(a) Link the cost to cost centre
(b) Link the cost to organisation to ascertain total profit
(c) Link the cost to production department
(d) Link the cost to individual shareholders - In behavioural analysis, costs are divided into
(a) Production and non-production costs
(b) Controllable and non-controllable costs
(c) Direct and indirect costs
(d) Fixed and variable costs - A costing method in which fixed overheads are included in the cost of inventory is
(a) Variable costing
(b) Direct costing
(c) Absorption costing
(d) Process costing - A system of single costing is used in the case of
(a) Motor workshop
(b) Hotel
(c) Brick-kiln
(d) Oil mill - Factory cost does not include
(a) Indirect manufacturing cost
(b) Burden
(c) Factory overheads
(d) Office overheads - Cost incurred in recruitment, training and development of an employee is known as
(a) Replacement cost
(b) Opportunity cost
(c) Historical cost
(d) Imputed cost - Which cost system applies to the manufacture of 20 engraved doors for a new clubhouse of a golf course?
(a) Contract
(b) Process
(c) Batch
(d) Service - In marginal costing, the following are considered in contribution computation.
(a) Selling price and variable cost
(b) P/V ratio and fixed cost
(c) Profit and fixed cost
(d) BEP and margin of safety - The excess of actual sale over breakeven sale is termed as
(a) Contribution
(b) Margin of safety
(c) Fixed cost
(d) Variable cost - When sale is Rs. 3 lakh, fixed cost Rs. 30,000 and P/V ratio is 40%, then the profit will be
(a) Rs. 1,50,000
(b) Rs. 1,20,000
(c) Rs. 80,000
(d) None of the above - When fixed cost is Rs. 18,000, profit earned is Rs. 12,000 and break-even sale is Rs. 90,000, what is the actual sale?
(a) Rs. 1,50,000
(b) Rs. 1,20,000
(c) Rs. 1,40,000
(d) None of the above - An increase in fixed cost will result into
(a) Decrease in P/V ratio
(b) Increase in break-even level
(c) Decrease in per unit contribution
(d) Increase in P/V ratio
Advance & Miscellaneous Accounting
- A trader does not keep a complete set of books and gives the following information:
Started business with Rs. 10,000 on 1st June, 2014. Drawings @ Rs. 500 for the last six months. Further capital introduced during the year Rs. 2,000. On 31st Dec, 2014, his total asset was Rs. 23,700 and his creditors were Rs. 3,000 on the same date. Outstanding expenses on that date were Rs. 500. His net profit during the year would be
(a) Rs. 11,200
(b) Rs. 11,500
(c) Rs. 13,000
(d) Rs. 14,200 - Which of the following is not prepared by non-profit organisation?
(a) Receipts and Payments A/c
(b) Income and Expenditure A/c
(c) Balance Sheet
(d) Income Statement - The statement of financial position produced from incomplete accounting record is commonly known as
(a) Balance Sheet
(b) cash-flow statement
(c) Statement of affairs
(d) statement of financial position
Business Studies
- One of the advantages of partnership form of organisation is that
(a) All partners always have limited liability
(b) Shares can be sold at stock market
(c) The business survives after the death of the partners
(d) The business has access to more capital than a sole trader - One of the disadvantages of sole trader business is that
(a) Capital is limited to owner’s savings and bank loans
(b) Decisions take too long to make
(c) As they are government owned, there is no profit motive
(d) The owners may disagree in different issues - Which of the following statements best applies to a public limited company?
(a) It is owned by the government and is in the public sector.
(b) It is owned by shareholders who can sell their shares in the stock exchange.
(c) It is quick and easy to set up with few legal formalities.
(d) Its accounts can be kept private. - Which of the following does not form part of an organisation’s microenvironment?
(a) Intermediaries
(b) Customers
(c) Statute legislation
(d) Suppliers - The essential purpose of all business organisations is to
(a) Make maximum level of profit
(b) Make a satisfactory level of profit
(c) Transform input to output
(d) Be a good citizen - Ethical behaviour needs to be considered by business organizations because
(a) The customer knows best and organisation must always do what customer wants
(b) Customer may not always appreciate the consequences of their action
(c) There is always a legal requirement to act ethically
(d) Ethic is the same as law - Relaxing the restrictions and controls imposed on business and industry means
(a) Liberalization
(b) Privatization
(c) Globalization
(d) None of the above - The broad categories of business activities are
(a) Trade and commence
(b) Trade and industry
(c) Industry and commerce
(d) None of the above - Which of the following business risk characteristics is not correct?
(a) Loss is the reward of risk bearing
(b) Business risks are due to uncertainties
(c) Risk is an essential component of every business
(d) Degree of risks depends mainly upon the nature and size of business - Commerce includes activities relating to trade and _____ to trade.
(a) Supporting
(b) Subsidiaries
(c) Auxiliaries
(d) None of the above - “A company has a separate legal existence from its members.” This principle was first laid down in case of
(a) Salomon vs. Salomon & Co. Ltd.(1897)
(b) Daimler Co. Ltd. vs. Continental Tyre and Rubber Co. (1916)
(c) State of UP vs. Renu Sagar Power Co. (1991)
(d) Santanu Roy vs. Union of India (1989)
Finance
- Financial management closely relates to
(a) Asset side of the Balance Sheet
(b) Liabilities side of the Balance Sheet
(c) Both sides of the Balance Sheet
(d) None of the above - Call option is
(a) A contract to buy a certain number of shares at a stated price within a specific period of time
(b) A contract to sell certain number of shares at a stated price within a specific period of time
(c) The option of issuing company to demand the shareholders to pay for partly paid shares
(d) The option available to the convertible debenture holders to demand equity shares in conversion of debentures - ‘Blue chip’ share means
(a) Those shares which are listed in stock exchange
(b) Those shares whose guarantee is given by government
(c) Those shares on whom dividend is paid at higher rate regularly
(d) Those shares which are issued first time - The simplest method of evaluating capital expenditure project is
(a) Internal rate of return method
(b) Average rate of return method
(c) Payback period method
(d) None of the above - Market that enables new issues of equity to be traded is called
(a) Primary market
(b) Secondary market
(c) Discount market
(d) All of the above - Which of the following instruments is used by the public directly to lend the government?
(a) Bank deposit
(b) Public provident fund
(c) Treasury bill
(d) Certificate of deposit - Indigenous bankers are regulated by
(a) Reserve Bank of India
(b) Ministry of Finance
(c) Registrar of Cooperative Societies
(d) None of the above - In commodity market, the option to give delivery is given during a period is identified as
(a) Delivery period
(b) Delivery notice period
(c) Settlement period (
d) Notice period - Market in which transactions are done through computers and telephone without any specific location is classified as
(a) Past-counter market
(b) Future-counter market
(c) Over-counter market
(d) Capital-counter market
Business Management
- Which of the following is not a component of ‘SWOT’?
(a) Threats
(b) Strength
(c) Weakness
(d) Option - “Management is the process of getting things done through the agency of a community.” This definition is given by
(a) Sir Charles Renold
(b) Henri Fayol
(c) Lawrence A. Appley
(d) None of them - The first woman authority of management is
(a) Mary Parkett Follet
(b) Lillian Gilbreth
(c) T. N. White Head
(d) None of them - The concept of management and administration is
(a) Same
(b) Different
(c) Partly same partly different
(d) Two sub factors of one main function - CPM stands for
(a) Common Project Management
(b) Critical Path Method
(c) Critical Programming Method
(d) None of the above - Staffing function deals with
(a) Machines
(b) Raw materials
(c) Men
(d) None of the above - In management practice, the number of subordinates for whom a manager is directly responsible is called
(a) Communication
(b) Coordination
(c) Leadership
(d) Span of control - In strategic human resource management, HR strategies are generally aligned with
(a) Business strategy
(b) Finance strategy
(c) Marketing strategy
(d) Economic strategy - Which of the following is not a personal benefit?
(a) Sick leave
(b) Flex benefit
(c) Sales bonus
(d) Dental plan - Which of the following is a percentage on the volume of sale?
(a) Profit sharing
(b) Piecework
(c) Commission
(d) Bonus - What is the full form of CRM?
(a) Customer Relationship Management
(b) Customer Resource Management
(c) Consumer Relationship Management
(d) None of the above - Which of the following is a marketing advantage of strong brand?
(a) General loyalty
(b) Larger margin
(c) Greater financial market returns
(d) All of the above - First step to cost-based pricing strategy is to
(a) Design a product
(b) Determine cost of product
(c) Set price based on cost
(d) Convince buyer about products value
Auditing
- The major object of an audit is
(a) Expression of opinion
(b) Detection and prevention of fraud and error
(c) Both (a) and (b)
(d) Depends on type of audit - Statement on standard auditing practices (SAPs) are important while discharging the audit function by a member of ICAI in case of a company, because SAPs are
(a) Prescribed by ICAI
(b) Contained in the Companies Act, 1956
(c) Approved by the Department of Company Affairs
(d) Approved by the Central Government in consultation with Comptroller and Auditor General - Of the following, which is least persuasive type of evidence?
(a) Bank statement obtained from the client
(b) Documents obtained from the third parties directly by the auditor
(c) Carbon copies of sales invoice inspected by the auditor
(d) Computation made by the auditor - Audit programme is prepared by
(a) The auditor
(b) The client
(c) The audit assistants
(d) The auditor and his audit assistants - The auditor of a government company is appointed by the CAG. His remuneration is fixed by
(a) The CAG
(b) The shareholders
(c) The shareholders at an annual general meeting
(d) The board of directors - Internal control is totally synonymous with
(a) Internal check
(b) Internal audit
(c) Operational control
(d) None of the above - The system of internal check ensures that
(a) Work is distributed among the employees according to their merit and qualification
(b) Work is completed as per prescribed schedule
(c) Work performed by one employee is automatically checked by another employee
(d) Work performed by one employee is checked by internal audit staff - What is the systematic evaluation of a company’s activities in a given area of social interest, such as environmental protection, workplace safety or community involvement, called?
(a) Social responsibility
(b) Social accounting
(c) Social audit
(d) Social forecasting - In verification of assets, the duty of the auditor is
(a) To ensure that the asset has actually been acquired
(b) To ensure that they are clearly stated in the Balance Sheet
(c) To satisfy himself that they are properly valued
(d) To satisfy himself with regard to the existence, ownership and value of the asset - Which of the following statements is true about management audit?
(a) Management audit is made compulsory and statutory.
(b) Management audit is a programme of one year.
(c) Management audit cannot be conducted by an independent person.
(d) No time limit can be fixed for submission of report under management audit. - Which of the following statements relating to audit programme is not correct?
(a) The auditor cannot defend himself on the basis of audit programme if there is a charge of negligence against him.
(b) It is useful basis for planning the programme for the subsequent year.
(c) It helps in the final review before the report is signed.
(d) It simplifies the allocation of work amongst the audit staff. - The following are categories of Audit Reports, except
(a) Qualified report
(b) Unqualified report
(c) Adverse report
(d) All of the above - Management auditor should have thorough knowledge of
(a) Financial accounting
(b) Production technique
(c) Costing system
(d) All of the above
Business Economics
- If average cost is falling, then
(a) Marginal cost is rising
(b) Marginal cost is falling
(c) Marginal cost is equal to average cost
(d) It is impossible to tell if marginal cost is rising or falling - At different points of indifference curve, utility is
(a) Different
(b) Same
(c) Zero
(d) None of the above - For inferior goods, demand curve
(a) Slopes upward from left to right
(b) Slopes downward from left to right
(c) Is a circle
(d) None of the above - By elasticity of demand it is generally meant
(a) Cross-elasticity
(b) Price elasticity
(c) Income elasticity
(d) None of the above - Nature of elasticity of demand for tobacco and share price is
(a) Different
(b) Opposite
(c) Same
(d) None of the above - Isoquant is a form of production function.
(a) It is false
(b) It is true
(c) It is not related
(d) None of the above - When average product rises, marginal product
(a) Equals average product
(b) Rises but less than average product
(c) Falls
(d) Rises but more than average product - Short-run and long-run cost curves
(a) Are same
(b) Are opposite
(c) Intersect each other
(d) None of the above - Variable cost can be observed in the
(a) Short run
(b) Long run
(c) Both (a) and (b)
(d) Neither (a) nor (b) - Price is given for a firm in
(a) Monopoly market
(b) Oligopoly market
(c) Perfect competition market
(d) None of the above - Markets for toothpastes and toilet soap are examples of
(a) Perfect competition
(b) Monopoly
(c) Monopolistic competition
(d) None of the above - Labour market is considered to be an example of
(a) Monopoly
(b) Monopsony
(c) Oligopoly
(d) None of the above - Rent is regarded as a payment for the use of
(a) Labour
(b) Capital
(c) Organization
(d) None of the above - Gross domestic product can be measured by adding a country’s
(a) Production
(b) Expenditure
(c) Income
(d) All of the above - Value of marginal propensity to consume
(a) Lies between zero and one
(b) Lies between one and two
(c) Lies between zero and two
(d) None of the above - For an autonomous investment function, investment depends
(a) Directly with income
(b) Inversely with income
(c) Directly with rate of interest
(d) None of the above
Business Mathematics and Statistics
- Albert invested an amount of Rs. 8,000 in a fixed deposit for 2 years at compound interest of 5% p.a. How much Albert will get on the maturity of the fixed deposit?
(a) Rs. 8,510
(b) Rs. 8,600
(c) Rs. 8,730
(d) Rs. 8,820 - Find the simple interest on R 2,000 at 25 4 % p.a. for the period 4th Feb, 2005 to 18th April, 2005.
(a) Rs. 25
(b) Rs. 30
(c) Rs. 35
(d) Rs. 40 - If sales tax is reduced from 5% to 4%, then what difference it will make if you purchase an item of Rs. 1,000?
(a) Rs. 10
(b) Rs. 20
(c) Rs. 30
(d) Rs. 40 - How many litres of pure acid are there on 8•5 litres of a 20% solution?
(a) 1•5 litres
(b) 1•6 litres
(c) 1•7 litres
(d) 1•8 litres - If p and q are the roots of the equation x 2 + px + q = 0, then
(a) p = 1, q = -2
(b) p = 0, q = 1
(c) p = -2, q = 0
(d) p = -2, q = 1 - In an arithmetic progression (AP), the pth term is – q and the (p + q)th term is 0. Then the qth term is
(a) –p
(b) p
(c) p + q
(d) p – q - If x, 2y, 3z are in arithmetic progression, where the distinct numbers x, y, z are in geometric progression (GP), then the common ratio of GP is
(a) 3
(b) 1/3
(c) 2
(d) 1/2 - A statistical measure which cannot be determined graphically is
(a) Median
(b) Mode
(c) Harmonic mean (HM)
(d) Arithmetic mean (AM) - A group of 10 items has an arithmetic mean of 6. If the arithmetic mean of 4 of these items is 7•5, then the mean of the remaining items is
(a) 6•5
(b) 5•5
(c) 4•5
(d) 5•0 - Variance is independent of the change of
(a) Origin only
(b) Scale only
(c) Both origin and scale
(d) None of the above - Which of the following measures is one of central tendency?
(a) Mode
(b) Mean deviation
(c) Standard deviation
(d) Coefficient of correlation - Index numbers are expressed in terms of
(a) Ratio
(b) Squares
(c) Percentages
(d) Combination of the above - The most suitable average in chain based method is
(a) Arithmetic mean
(b) Median
(c) Mode
(d) Geometric mean - If the mean of a set of observations X1, X 2,L, X n is X , then the mean of the observation xi + 2i (i = 1, 2, L, n) is
(a) X + 2
(b) X + 2n
(c) X + (n +1)
(d) X + n - The correlation between X and a – X is
(a) –1
(b) 1
(c) ½
(d) 0
Answer Key
| 1 (b) | 2 (b) | 3 (c) | 4 (a) | 5 (d) |
| 6 (c) | 7 (d) | 8 (b) | 9 (a) | 10 (b) |
| 11 (d) | 12 (b) | 13 (c) | 14 (b) | 15 (a) |
| 16 (d) | 17 (b) | 18 (b) | 19 (a) | 20 (b) |
| 21 (c) | 22 (c) | 23 (c) | 24 (d) | 25 (b) |
| 26 (c) | 27 (b) | 28 (d) | 29 (b) | 30 (c) |
| 31 (d) | 32 (d) | 33 (d) | 34 (a) | 35 (a) |
| 36 (b) | 37 (a) | 38 (b) | 39 (a) | 40 (a) |
| 41 (a) | 42 (c) | 43 (d) | 44 (b) | 45 (b) |
| 46 (b) | 47 (a) | 48 (d) | 49 (d) | 50 (c) |
| 51 (c) | 52 (d) | 53 (c) | 54 (b) | 55 * |
| 56 (d) | 57 (d) | 58 (b) | 59 (a) | 60 (d) |
| 61 (c) | 62 (c) | 63 (d) | 64 (a) | 65 (c) |
| 66 (a) | 67 (b) | 68 (d) | 69 (a) | 70 (b) |
| 71 (a) | 72 (d) | 73 (c) | 74 (d) | 75 (a) |
| 76 (b) | 77 (c) | 78 (c) | 79 (b) | 80 (a) |
| 81 (c) | 82 (a) | 83 (c) | 84 (a) | 85 (c) |
| 86 (a) | 87 (c) | 88 (c) | 89 (a) | 90 (b) |
| 91 (d) | 92 (b) | 93 (c) | 94 (d) | 95 (d) |
| 96 (b) | 97 (c) | 98 (b) | 99 (c) | 100 (d) |
| 101 (a) | 102 (a) | 103 (c) | 104 (a) | 105 (d) |
| 106 (a) | 107 (d) | 108 (a) | 109 (c) | 110 (a) |
| 111 (c) | 112 (c) | 113 (c) | 114 (c) | 115 (d) |
| 116 (d) | 117 (a) | 118 (d) | 119 (d) | 120 (b) |
| 121 (b) | 122 (a) | 123 (b) | 124 (c) | 125 (b) |
| 126 (d) | 127 (d) | 128 (a) | 129 (c) | 130 (c) |
| 131 (b) | 132 (d) | 133 (d) | 134 (a) | 135 (d) |
| 136 (d) | 137 (a) | 138 (a) | 139 (c) | 140 (a) |
| 141 (a) | 142 (b) | 143 (c) | 144 (d) | 145 (a) |
| 146 (a) | 147 (c) | 148 (d) | 149 (c) | 150 (a) |
Tripura PGT Commerce – 2018
| S. No | Subject | No. of MCQs | S. No | Subject | No. of MCQs |
| 1 | Financial Accounting | 25 | 2 | Corporate Accounting | 30 |
| 3 | Cost & Management Accounting | 15 | 4 | Advance & Miscellaneous Accounting | 5 |
| 5 | Business Studies | 9 | 6 | Finance | 8 |
| 7 | Business Management | 13 | 8 | Auditing | 15 |
| 9 | Business Economics | 15 | 10 | Business Mathematics and Statistics | 15 |
| Total No. of Questions = 150 | |||||
Financial Accounting
- Accounts produced objectively will be unbiased and hence tend to be more
(a) Reliable
(b) Comparable
(c) Relevant
(d) None of the above - Quantitative transactions are not recorded in accounts due to
(a) Accrual concept
(b) Realisation concept
(c) Money measurement concept
(d) None of the above - Accounting principles are generally based on
(a) Subjectivity
(b) Practicability
(c) Applicability
(d) None of the above - The accounting standards are intended to apply only to items which are
(a) Material
(b) Insignificant
(c) Measured in terms of money
(d) None of the above - The term ‘imprest system’ is used in relation
(a) Sales book
(b) Cash book
(c) Petty cash book
(d) None of the above - Window dressing is prohibited due to
(a) Convention of conservatism
(b) Convention of disclosure
(c) Convention of materiality
(d) None of the above - Which of the following pairs are correctly matched?
(a) Business entity—Accounting standard
(b) Capital—Drawings
(c) Stock valuation—Consistency
(d) None of the above - Which of the following is an accounting equation?
(a) Capital – Assets = Liabilities
(b) Assets – Liabilities = Capital
(c) Liabilities – Capital = Assets
(d) None of the above - Revenue is generally recognised as being earned at that point of time when
(a) Sale is affected
(b) Cash is received
(c) Production is completed
(d) None of the above - Accounting records transactions in terms of
(a) Commodity units
(b) Monetary units
(c) Production units
(d) None of the above - ‘Errors of Commission’ do not allow
(a) Correct totalling of the Balance Sheet
(b) Correct totalling of the Trial Balance
(c) The Trial Balance to agree
(d) None of the above - ‘Bank Reconciliation Statement’ is prepared by
(a) Bank
(b) Customer of Bank
(c) Creditor of a business
(d) None of the above - Closing stock appearing in the Trial Balance is shown
(a) On the credit side of Profit and Loss Account
(b) On the credit side of Trading Account
(c) On the assets side of the Balance Sheet
(d) None of the above - Assets appearing in the book but having no value are known as
(a) Wasting assets
(b) Intangible assets
(c) Fictitious assets
(d) None of the above - Expenditure incurred by a publisher for acquiring copy rights is a
(a) Capital expenditure
(b) Revenue expenditure
(c) Deferred revenue expenditure
(d) None of the above - Depreciation accounting is a process of
(a) Allocation of cost
(b) Valuation of assets
(c) Provision for replacement of assets
(d) None of the above - An asset is never reduced to zero in the
(a) Fixed installment method of depreciation
(b) Annuity method of depreciation
(c) Diminishing balance method of depreciation
(d) None of the above - Secret reserves are created by means of
(a) Transfer to general reserve
(b) Providing excessive depreciation
(c) Overvaluation of inventories
(d) None of the above - Obsolescence means decline in the value due to
(a) Fall in the market price
(b) Physical wear and tear
(c) Efflux of time
(d) None of the above - Which of the following is not a capital reserve?
(a) Profit prior to incorporation
(b) Dividend equalisation reserve
(c) Profit on sale of fixed assets
(d) None of the above - The term ‘depletion’ is used in relation to
(a) Fixed assets
(b) Wasting assets
(c) Intangible assets
(d) None of the above - A provision is a
(a) General reserve
(b) Specific reserve
(c) Capital reserve
(d) None of the above - X, Y and Z are partners in a firm sharing profits and losses in the ratio 1/2, 2/5, 1/10 respectively. What will be new ratio of the remaining partners if X retires?
(a) 2 : 1
(b) 4 : 1
(c) 5 : 1
(d) None of the above - A and B are partners sharing profits and losses in the ratio 7 : 3. C is admitted as a new partner. A surrenders 1/7 and B surrenders 1/3 of their share in favour of C. Then new profit-sharing ratio will be
(a) 3 : 1 : 1
(b) 4 : 1 : 1
(c) 3 : 2 : 1
(d) None of the above - As per Garner vs Murray, the loss resulting from a partner’s insolvency is borne by other partners in
(a) Equal ratio
(b) Capital ratio
(c) Profit-sharing ratio
(d) None of the above
Corporate Accounting
- Which of the following securities cannot be issued by a Public Ltd. Company in India?
(a) Participating preference share
(b) Redeemable preference share
(c) Deferred share
(d) None of the above - If on a share of Rs. 100 and called up capital Rs. 90, while the company received Rs. 80, the capital account should be credited with
(a) Rs. 100
(b) Rs 90
(c) Rs. 80
(d) None of the above - Right shares mean the shares which are
(a) Issued to the directors of the company
(b) First offered to the debenture holders
(c) First offered to the existing shareholders
(d) None of the above - When shares are forfeited, capital account is debited by
(a) Nominal value of shares
(b) Paid-up amount of shares
(c) Called-up amount of shares
(d) None of the above - The minimum share application money is
(a) 5% of the nominal value of shares
(b) 10% of the nominal value of shares
(c) 25% of the nominal value of shares
(d) None of the above - The issue of bonus shares must be in accordance with the guideline issued by the
(a) Company Law Board
(b) Controller of Capital Issue
(c) Securities and Exchange Board of India
(d) None of the above - If forfeited shares which were first originally issued at a discount are re-issued at a premium, the amount of such premium will be credited to
(a) Share forfeiture account
(b) Share premium account
(c) Capital reserve account
(d) None of the above - Share premium received by issuing shares can be used for
(a) Payment of dividend
(b) Issue of bonus share
(c) Any business purpose
(d) None of the above - Non-convertible debenture refers to
(a) Loan capital
(b) Owner’s capital
(c) Short-term debts
(d) None of the above - After the redemption of debentures, the balance of ‘debenture sinking fund’ is transferred to
(a) Debenture account
(b) General reserve account
(c) Capital reserve account
(d) None of the above - A Ltd. Company issues 3000, 15% debentures of Rs. 100 each at a discount of 7.5%, repayable at a premium of 5% at the end of 5 years. The loss on issue of debentures will be
(a) Rs. 22,500
(b) Rs. 30,000
(c) Rs. 37,500
(d) None of the above - Redeemable preference shares can be redeemed
(a) Only if they are fully paid
(b) Even if they are partly paid
(c) Only if they are issued at a premium
(d) None of the above - The portion of share capital which can be called up only on the winding up of the company is the
(a) Authorised capital
(b) Issued capital
(c) Reserve capital
(d) None of the above - Participating preference shares are those which participate
(a) In the voting
(b) In the general meeting of the company
(c) In the profits over and above their fixed dividend
(d) None of the above - Redeemable preference shares of Rs. 2,00,000 are redeemed at par for which purpose fresh equity shares of Rs. 80,000 is issued at a premium of 10%. What amount should be transferred to Capital Redemption Reserve Account?
(a) Rs. 1,28,000
(b) Rs. 1,20,000
(c) Rs. 72,000
(d) None of the above - The process of explaining the meaning, significance and relationship between to financial factors is called
(a) Summarization
(b) Analysis
(c) Interpretation
(d) None of the above - One of the techniques used in comparative analysis in financial statement is
(a) Graphical analysis
(b) Preference analysis
(c) Common size analysis
(d) None of the above - The term ‘funds’ as used in Funds Flow Statement means
(a) Net working capital
(b) Cash
(c) Current assets
(d) None of the above - Which of the following transactions will result inflow of funds?
(a) Conversion of debentures into equity shares
(b) Issue of debentures
(c) Redemption of debentures
(d) None of the above - Given net profit for the year Rs. 2,50,000, transferred to general reserve Rs. 40,000 and old machinery bought for Rs. 50,000 was sold for Rs. 20,000. Fund from operation is
(a) Rs. 2,80,000
(b) Rs. 2,20,000
(c) Rs. 2,00,000
(d) None of the above - Cash Flow Statement is based upon
(a) Cash basis of accounting
(b) Accrual basis of accounting
(c) Credit basis of accounting
(d) None of the above - As per Accounting standard AS-3, provision for taxation should be treated as
(a) A current liability
(b) An appropriation of profit
(c) Both (a) and (b)
(d) None of the above - Cash from operation is equal to
(a) Net profit + decrease in current assets
(b) Net profit + decrease in current liabilities
(c) Net profit + issue of bonus share
(d) None of the above - Increase in the amount of prepaid expenses results in
(a) Increase in cash
(b) Decrease in cash
(c) No change in cash
(d) None of the above - The immediate solvency ratio is
(a) Quick ratio
(b) Current ratio
(c) Debtors turnover ratio
(d) None of the above - When net sales for the year are Rs. 2,50,000 and debtors are Rs. 50,000, the average collection period is (assuming the year as 360 days)
(a) 60 days
(b) 45 days
(c) 72 days
(d) None of the above - If the cost of goods sold is Rs. 1,00,000, the values of opening and closing stocks are Rs. 20,000 and Rs. 30,000 respectively, the stock turnover ratio will be
(a) 4
(b) 5
(c) 6
(d) None of the above - Price per share is Rs. 30 and earnings per share is Rs. 3.5, then price for earnings ratio would be
(a) 8•57
(b) 8•57
(c) 0•857
(d) None of the above - In calculation of net cash flow, depreciation and amortization are treated as
(a) Current liabilities
(b) Non-cash revenues
(c) Non-cash charges
(d) None of the above - X Ltd. has a debt-equity ratio of 1•5 as compared to 1•3 industry average. It means that the firm has
(a) Higher liquidity
(b) Higher financial risk
(c) Higher capital employed
(d) None of the above
Cost & Management Accounting
- Cost accounting is based on
(a) Approximate figures
(b) Estimated figures
(c) Historical figures
(d) None of the above - Cost of production is equal to
(a) Prime cost + works cost
(b) Total cost – prime cost
(c) Works cost + administrative cost
(d) None of the above - An opportunity cost is a
(a) Direct expenses
(b) Indirect expenses
(c) Semi-variable expenses
(d) None of the above - Conversion cost includes
(a) Direct material + direct labour
(b) Direct material + direct labour +works cost
(c) Labour cost + Manufacturing expenses
(d) None of the above - Which of the following expenses is excluded from cost?
(a) Discount on issue of shares and debentures
(b) Excise duty
(c) Hire charges of a special plant
(d) None of the above - Cost accounting is one of the branches of accounting which has emerged due to the problems faced by
(a) Management accounting
(b) Inflation accounting
(c) Financial accounting
(d) None of the above - Which of the following is not a technique of cost accounting?
(a) Operating costing
(b) Standard costing
(c) Uniform costing
(d) None of the above - An aggregate of indirect material, indirect labour and indirect expenses is called
(a) Replacement cost
(b) Overhead
(c) Sunk cost
(d) None of the above - In process costing, cost per unit increases because of
(a) Normal gain
(b) Normal loss
(c) Abnormal loss
(d) None of the above - Which method of costing is used in mass production industries?
(a) Job costing
(b) Batch costing
(c) Process costing
(d) None of the above - 1,000 units are introduced in a process in which normal loss is 150 units. If actual output is also 1,000 units, then there is
(a) Abnormal gain
(b) Abnormal loss
(c) No abnormal gain or abnormal loss
(d) None of the above - Marginal costing is also known as
(a) Direct costing
(b) Variable costing
(c) Both (a) and (b)
(d) None of the above - Break-even-analysis does not require the following assumption.
(a) All fixed costs are fixed
(b) All variable costs are fixed
(c) Prices of input factors are constant
(d) None of the above - An industry is selling its product for R 10 per unit. The fixed cost is R 40,000 with variable cost of R 6 per unit. How many units should be produced to break even?
(a) 8,000 units
(b) 10,000 units
(c) 12,000 units
(d) None of the above - P/V ratio of a company is 50%, while its margin of safety is 40%. If sales volume is Rs. 5,00,000, then the net profit will be
(a) R 1,00,000
(b) R 50,000
(c) R 2,00,000
(d) None of the above
Advance & Miscellaneous Accounting
- Bills receivable endorsed are debited to
(a) Debtor’s account
(b) Creditor’s account
(c) Bills receivable account
(d) None of the above - Memorandum Joint Venture Account is a
(a) Personal account
(b) Real account
(c) Nominal account
(d) None of the above - Single Entry System is defective because
(a) Only one account is maintained
(b) The Trial Balance cannot be prepared
(c) The net profit cannot be accurately calculated
(d) None of the above - Which of the following is prepared by organisations keeping only incomplete accounting records?
(a) Customer’s account
(b) Cash book
(c) Expenses account
(d) None of the above - Receipts and Payments Account records the transaction of
(a) Revenue receipts and payments only
(b) All receipts and payments relating to the current year only
(c) All receipts and payments relating to the current year, succeeding year as well as preceding year
(d) None of the above
Business Studies
- Social responsibility of business assumes considerable importance towards
(a) Owners and workers
(b) Consumer and society
(c) Government and nation
(d) All of the above - In which of the basic categories can business environment be divided?
(a) Local and regional
(b) Regional and national
(c) Internal and external
(d) None of the above - Which of the following should be regarded as the most important factor for deciding the form of business organisation?
(a) Type of business
(b) Financial requirement
(c) Area of operation
(d) None of the above - The most simplest form of business ownership is
(a) Proprietorship business
(b) Partnership firm
(c) Joint-stock company
(d) None of the above - A partnership firm comes into existence by agreement between all the partners and such agreement should be
(a) Expressed agreement
(b) Implied agreement
(c) Either expressed or implied agreement
(d) None of the above - What is the advantage of corporation relating to partnership and sole proprietorship?
(a) Increased difficulty of raising funds
(b) Reduced legal liabilities for investors
(c) Harder to transfer ownership
(d) None of the above - Which of the following is a characteristic of a co-operative society?
(a) Profits are not subject to income tax
(b) One vote per share
(c) Dividends are paid on a per share basis
(d) None of the above - A major disadvantages of the corporate form of business organisation is the
(a) Double taxation on dividend
(b) Limited liability to shareholders
(c) Unlimited life of the corporate form
(d) None of the above - The most suitable form of business organisation for the people of weaker section is
(a) Partnership firm
(b) Co-operative society
(c) Joint-stock company
(d) None of the above
Finance
- Type of market in which securities with less than one year are traded is called
(a) Capital market
(b) Money market
(c) Global market
(d) None of the above - Which is the most active money market instrument in India?
(a) Treasury bill
(b) Repo
(c) Commercial paper
(d) None of the above - In capital market major suppliers of trading instruments are
(a) Govt and Corporations
(b) Manufacturing Corporations
(c) Instrumental Corporations
(d) None of the above - Stock and shares that are sold to investors transacting through financial institutions are called
(a) Direct transfer
(b) Indirect transfer
(c) Global transfer
(d) None of the above - A future contract is nothing but a forward contract that is
(a) Sold by mutual funds
(b) Sold by bank
(c) Exchange traded
(d) None of the above - What is the important role of commodity exchange?
(a) Maintain market balance
(b) Provide liquidity
(c) Providing security against risk
(d) None of the above - Finance function comprises
(a) Expenditure of funds only
(b) Procurement of finance only
(c) Procurement and effective use of funds
(d) None of the above - The only feasible purpose of financial management is
(a) Wealth maximization
(b) Profit maximisation
(c) Sales maximization
(d) None of the above
Business Management
- Which of the following management functions are closely related?
(a) Planning and organizing
(b) Planning and control
(c) Planning and directing
(d) None of the above - ‘Human relation approach’ management was originated by
(a) Henri Fayol
(b) Peter Drucker
(c) Elton Mayo
(d) None of the above - Contingency school of management says that management is
(a) Practice oriented
(b) Principle oriented
(c) Result oriented
(d) None of the above - To indicate the functions of management, the catch word ‘POSDCORB’ was coined by
(a) Luther Gulick
(b) Henri Fayol
(c) Ernest Dale
(d) None of the above - The process of choosing a course of action from among alternative to achieve a desired goal is called
(a) Planning
(b) Organising
(c) Division making
(d) None of the above - Which of the following is not a function of personnel management?
(a) Production, planning and centrol
(b) Recruitment and selection of manpower
(c) Training and development of manpower
(d) None of the above - In manpower planning short-term plans are prepared for
(a) 1 year
(b) 6 months
(c) 3 months
(d) None of the above - Marketing management covers not only the market of goods but also the marketing of
(a) Products
(b) Services
(c) Quality of goods
(d) None of the above - Maximizing the market share is the objective of a company in _____ stage of product life cycle.
(a) Growth
(b) Maturity
(c) Introduction
(d) None of the above - Green marketing is a part of
(a) Re-marketing
(b) Event marketing
(c) Social marketing
(d) None of the above - Which of the following terms was also used prior to language of recent Human Resource Management?
(a) Labour relation
(b) Personnel management
(c) Industrial relations
(d) None of the above - Which Act in industrial relations defines the term ‘Trade union’?
(a) Industrial Trade Resolution 1962
(b) Industrial Policy 1991
(c) Industrial Employment 1946
(d) None of the above - Which of the following is not an approach to industrial relation?
(a) Employee’s approach
(b) Unitary approach
(c) Pluralistic approach
(d) None of the above
Auditing
- The principle object of audit is
(a) to exhibit of true and fair view of the state of affairs of the undertaking
(b) Detection of errors
(c) Checking accuracy of accounts
(d) None of the above - Which of the following is the most detailed audit?
(a) Statutory audit
(b) Continuous audit
(c) Periodical audit
(d) None of the above - Which of the following is called the ‘backbone’ of auditing?
(a) Routine checking
(b) Vouching
(c) Internal control
(d) None of the above - Internal audit is
(a) Statutory audit .
(b) Annual audit
(c) Internal control
(d) None of the above - By observing, testing and assessing, an auditor examines the system of
(a) Internal audit
(b) Internal control
(c) Continuous audit
(d) None of the above - The object of internal check is to
(a) Control wastages of resources
(b) Prevent errors and frauds
(c) Verify the cash receipts and payments
(d) None of the above - In verification of assets, the duty of the auditor is
(a) To ensure that assets have actually been acquired
(b) To ensure that assets are clearly stated in the Balance Sheet
(c) To satisfy himself with regard to the existence, ownership and value of the assets
(d) None of the above - The basic postulates of financial auditing theory includes
(a) Financial statement and data are verifiable
(b) Audit conclusion and report
(c) Accounting system and internal control
(d) None of the above - ‘Auditor is not a valuer’ stated in
(a) Kingston Cotton Mills Case
(b) London and General Bank Case
(c) Lee V.S Neuchated Co. Ltd Case
(d) None of the above - Cost audit under section 233(d) of the Companies Act is
(a) Voluntary
(b) Compulsory
(c) Advisable
(d) None of the above - Which of the following items is not included in environment audit?
(a) Pollution monitoring scheme
(b) Storage of toxic chemicals
(c) Scrutiny by govt. agencies
(d) None of the above - Who selects the Social Audit Committee under MGNREGA?
(a) Gram Sabha
(b) Village Panchayat
(c) Block Development Officer (B.D.O)
(d) None of the above - Which among the following is not an audit report?
(a) Disclaimer report
(b) Adverse report
(c) Standard unqualified report
(d) None of the above - Management audit is
(a) An independent appraisal of the total management process
(b) An investigation into the conduct of directors
(c) An independent appraisal of competitiveness of business
(d) None of the above - Management audit is conducted by
(a) Statutory auditor
(b) Government auditor
(c) Cost auditor
(d) None of the above
Business Economics
- A consumer attains highest utility when his budget line and indifference curve
(a) Cross each other
(b) Touch each other
(c) Both (a) and (b)
(d) None of the above - Law of demand states that
(a) Price and quality demanded vary in the same direction
(b) No relation between price and quality demanded
(c) Price and quality demanded vary in opposite direction
(d) None of the above - Cross price elasticity of demand involves
(a) One commodity and its price
(b) Two commodities and their price
(c) Both (a) and (b)
(d) None of the above - Production function provides the relationship between
(a) Input and output
(b) Output and price
(c) Input and factor price
(d) None of the above - Marginal product equals average product when average product is
(a) Lowest
(b) Declining
(c) Raising
(d) None of the above - Profit is the difference between
(a) Average revenue and average cost
(b) Total revenue and total cost
(c) Marginal revenue and marginal cost
(d) None of the above - When average cost raises marginal cost
(a) Equals average cost
(b) Raises but less than average cost
(c) Raises but more than average cost
(d) None of the above - Fixed cost be observed in the
(a) Short run
(b) long run
(c) Both (a) and (b)
(d) None of the above - In a perfectly competitive market average revenue
(a) Is less than marginal revenue
(b) Is more than marginal revenue
(c) Equals to marginal revenue
(d) None of the above - In a monopoly market
(a) There is a single seller
(b) There are two sellers
(c) There are many sellers
(d) None of the above - Marginal productivity theory is associated with
(a) Product pricing
(b) Factor pricing
(c) Product demand
(d) None of the above - Liquidity preference theory is associated with
(a) Rent
(b) Interest
(c) Wage
(d) None of the above - Gross national product includes
(a) Net export
(b) Net factor income
(c) Both (a) and (b)
(d) None of the above - A monopolistically competitive firm in long-run equilibrium
(a) Will make negative profit
(b) Will make zero profit
(c) Will make positive profit
(d) None of the above - Multiplier depicts and relationship between
(a) Investment and income
(b) Income and savings
(c) Savings and export
(d) None of the above
Business Mathematics and Statistics
- A certain sum of money at simple interest amounts to Rs 1260 in 2 years and to Rs. 1350 in 5 years. The rate percentage per annum is
(a) 2•5%
(b) 2•0%
(c) 3•0%
(d) None of the above - How much time will it take for an amount of Rs. 450 to yield Rs. 81 as interest at 4.5% per annum of simple interest?
(a) 3.5 years
(b) 4 years
(c) 4.5 years
(d) None of the above - A bank offers 5% compound interest calculated on half yearly basis. A customer deposits Rs. 1,600 each on 1st January, and 1st July of a year. At the end of the year, the amount he would have gained by way of interest is
(a) Rs. 120
(b) Rs. 121
(c) Rs. 122
(d) None of the above - The difference between simple and compound interest on a sum of money put for 4 years at 5%. p.a. is Rs. 150. The sum is
(a) Rs. 10,000
(b) Rs. 12,000
(c) Rs. 15,000
(d) None of the above - Find the amount of annuity of R 100 per annum left unpaid for 10 years, allowing 5% p.a. compound interest.
(a) Rs. 1825
(b) Rs. 1528
(c) Rs. 1258
(d) None of the above - If x 4 – 3x + 5 is divided by 2x -1, then remainder is
(a) 35/16
(b) (- 35)/16
(c) – 9
(d) None of the above - The first term and third term of an A.P. are 30 and 26 respectively. Find the eighth term
(a) 20
(b) 16
(c) 12
(d) None of the above - If the roots of the equation 2x 2 + 2x – 3 = 0 are a and b, then the value of 2ab is
(a) 2
(b) 3
(c) – 3
(d) None of the above - How many term of the series 1+3+9+27…… must to taken so that their sum is equal to 364
(a) 6
(b) 8
(c) 12
(d) None of the above - Measure which describes detailed characteristics of whole data set is classified as
(a) Average on central value
(b) Positive skewed
(c) Negative skewed
(d) None of the above - If mean absolute deviation of a set of observation is 8•5 then the value of quartile deviation is
(a) 10•2
(b) 9•08
(c) 7•08
(d) None of the above - The first two moments of a distribution about the value 5 of the variable are 3 and 34, then the variance is
(a) 15
(b) 25
(c) 35
(d) None of the above - Primary indexes, secondary indexes and cluster indexes are all types of
(a) Ordered indexes
(b) Unordered indexes
(c) Linear indexes
(d) None of the above - If the central tendency is found by using whole population as input data then this is classified as
(a) Population statistics
(b) Population tendency
(c) Population parameters
(d) None of the above - Which of the following is not a test for index numbers?
(a) Time reversal test
(b) Factor reversal test
(c) Circular test
(d) None of the above
Answer Key
| 1 (a) | 2 (c) | 3 (a) | 4 (a) | 5 (c) |
| 6 (a) | 7 (b) | 8 (b) | 9 (a) | 10 (b) |
| 11 (c) | 12 (b) | 13 (c) | 14 (c) | 15 (a) |
| 16 (a) | 17 (c) | 18 (b) | 19 (d) | 20 (b) |
| 21 (b) | 22 (b) | 23 (b) | 24 (a) | 25 (b) |
| 26 (c) | 27 (b) | 28 (c) | 29 (c) | 30 (a) |
| 31 (c) | 32 (b) | 33 (b) | 34 (a) | 35 (b) |
| 36 (c) | 37 (a) | 38 (c) | 39 (c) | 40 (a) |
| 41 (c) | 42 (c) | 43 (a) | 44 (b) | 45 (a) |
| 46 (a) | 47 (b) | 48 (a) | 49 (b) | 50 (a) |
| 51 (c) | 52 (a) | 53 (a) | 54 (c) | 55 (b) |
| 56 (b) | 57 (c) | 58 (a) | 59 (c) | 60 (a) |
| 61 (c) | 62 (a) | 63 (b) | 64 (b) | 65 (c) |
| 66 (a) | 67 (c) | 68 (b) | 69 (b) | 70 (a) |
| 71 (b) | 72 (c) | 73 (c) | 74 (a) | 75 (c) |
| 76 (d) | 77 (c) | 78 (c) | 79 (a) | 80 (c) |
| 81 (b) | 82 (a) | 83 (a) | 84 (b) | 85 (b) |
| 86 (b) | 87 (a) | 88 (a) | 89 (c) | 90 (a) |
| 91 (c) | 92 (a) | 93 (b) | 94 (c) | 95 (c) |
| 96 (a) | 97 (c) | 98 (a) | 99 (a) | 100 (b) |
| 101 (a) | 102 (c) | 103 (b) | 104 (d) | 105 (a) |
| 106 (a) | 107 (b) | 108 (b) | 109 (c) | 110 (b) |
| 111 (b) | 112 (c) | 113 (a) | 114 (a) | 115 (c) |
| 116 (c) | 117 (a) | 118 (a) | 119 (a) | 120 (d) |
| 121 (a) | 122 (c) | 123 (b) | 124 (a) | 125 (d) |
| 126 (b) | 127 (c) | 128 (a) | 129 (c) | 130 (a) |
| 131 (b) | 132 (b) | 133 (c) | 134 (b) | 135 (a) |
| 136 (a) | 137 (b) | 138 (b) | 139 (a) | 140 (c) |
| 141 (c) | 142 (b) | 143 (c) | 144 (a) | 145 (a) |
| 146 (c) | 147 (b) | 148 (a) | 149 (c) | 150 (d) |