Financial Accounting – Additional Questions – Open Link

 

 

 

PGT Commerce

KVS

 

 

 

 

 

 

1. When a company issues shares at a premium, that Security premium can be used full or in part for:

     (a)   Writing-off Goodwill                                         

    (b)   Writing off the Preliminary expenses

     (c)   Purchase of fixed assets                                       

    (d)   Writing off advertisement expenses

P.G.T. K.V.S. 2016

2. Any balance in the share forfeiture account, after all the forfeited shares are reissued, should be :
   (a) Added to the paid-up capital

(b) Transferred to the goodwill account
(c) Transferred to the capital reserve account  

(d) None of these

P.G.T. K.V.S. 2017

3. A company issued 50,000 shares of Rs. 10 each at 20% premium payable as follows: Application Rs. 3, Allotment Rs. 5 (including premium) and First and Final Call Rs. 4. A holder of 2,500 shares failed to pay the First and Final Call. His shares were forfeited. Calculated the amount to be credited to Share Forfeiture Account.
   (a) Rs. 11,000 (b) Rs. 15,000
   (c) Rs. 14,000 (d) None of the above

P.G.T. K.V.S. 2017

4. A company makes an issue of 10000 equity shares of Rs. 100 each, payable as follows
   On application and allotment Rs. 50
   On first call Rs. 25
   On second and final call Rs. 25 Members holding 400 shares did not pay the second call and the shares were duly forfeited 300 of which are reissued as fully paid at Rs. 70 per share. Amount transferred to capital reserve will be
   (a) Rs.15,000 (b) Rs. 1,000
   (c) Rs. 13,500 (d) None of these

P.G.T. K.V.S. 2017

5. The portion of the capital which can be called only at the time of winding up of the company is known as——-
   (a) Uncalled capital (b) Subscribed capital
   (c) Reserve capital (d) Nominal capital

P.G.T. K.V.S. 2018

6. Dividend is usually paid on:
   (a) Issued Capital (b) Paid-up Capital
   (c) Called-up Capital (d) Authorised Capital

P.G.T. K.V.S. 2018

7. Dinesh Software Limited forfeited 200 shares of Rs. 100 each (Rs. 60 called up) issued at par to Kareena on which she had paid Rs. 20 per share. Out of these, 150 shares were re-issued to Rajni for Rs. 45 per share as Rs. 60 paid up. Amount to be transferred to Capital reserve will be :
   (a) Rs. 750 (b) Rs. 2,250
   (c) Rs. 6,750 (d) Rs. 3,000

P.G.T. K.V.S. 2018

8. Garden Limited forfeited 450 shares of Rs. 10 each, issued at a premium of Rs. 1 each, on which Rs. 8 (including premium) was called and Rs. 6 (including premium) was paid. 350 of these shares were re-issued for Rs. 7 each as Rs. 8 paid up. What amount shall be credited to Capital Reserve Account?
   (a) Rs. 1,300 (b) Rs. 1,400
   (c) Rs. 1,500 (d) Rs. 1,600

P.G.T. K.V.S. 2018

NVS

 

 

 

 

1. The amount received in excess of face value of share is transferred to-
   (a) Share capital account (b) Share redemption account
   (c) Securities premium account (d) Share call account

P.G.T. N.V.S. 2014

2. Issue of equity shares for providing know-how or making available intellectual property rights is known as-
   (a) Issue of bonus shares (b) Issue of sweat shares
   (c) Issue of rights shares (d) Issue of convertible shares

P.G.T. N.V.S. 2014

3. Credit balance left on forfeited shares-is transferred to-
   (a) General reserve account (b) Capital reserve account
   (c) Share premium account (d) Share capital account

P.G.T. N.V.S. 2014

4. Which of the following statement is not correct ?
   (a) Discount on issue shares is the excess of nominal value over issue price
   (b) Discount on issue shares should be shown in the assets side of balance sheet
   (c) In case of forfeiture of shares, discount on forfeited shares should be debited
   (d) In case of forfeiture of shares, amount already received should be credited to

          share forfeiture account

P.G.T. N.V.S. 2014

5. The authorized capital of XX Ltd. is Rs. 1,00,00,000 divided into equity share of Rs.10 each. The company invited applications for issuing 80,000 shares. The issue was fully subscribed. All money was received. Except the final call of Rs. 20,000. For the year ended 31-3-2016 the company declared a dividend of 10%. The amount of dividend will be:

     (a)   Rs. 1,00,000                                                     (b)  Rs. 8,00,000

     (c)   Rs. 2,000                                                          (d)  Rs. 78,000

P.G.T. N.V.S. 2016

6. Y Ltd. offered for subscription 4,00,000 equity shares of Rs.10 each. The company received applications for 3,00,000 shares. Since the subscription was below minimum subscription, the company could not allot shares and refunded the application money. What could have been the minimum subscription in this case?

     (a)   3,60,000                                                           (b)  3,20,000

     (c)   3,80,000                                                           (d)  3,40,000

P.G.T. N.V.S. 2016

7. X Co. Ltd. forfeited 20 shares of Rs. 10 each on which Rs. 5 per share were paid. The company issued these shares @ Rs. 8 fully paid up. The amount transferred to capital reserve will be:
   (a) Rs. 20 (b) Rs. 60
   (c) Rs. 100 (d) Rs. 40

P.G.T. N.V.S. 2019

 

DSSSB

 

 

 

 

1. Sweat equity is
   (i) A new class of equity shares
   (ii) Issued to the employees and directors
   (iii) Issued out of the class of equity shares already issued by the company
   (iv) Issued to the investors also
   (a) (ii) and (iii) (b) (ii) and (iv)
   (c) (i) and (iii)                                                 (d) (iii) and (iv)

DSSSB PGT (2014 Tier I)

2.The underwriter has to take up
(a) The fixed portion of the issue capital
(b) The agreed portion of the unsubscribed part
(c) The agreed portion of can refuse it
(d) None of the above

DSSSB PGT (2014 Tier I)

3. Preference shareholders are

     (a)   Creditors of the company                                (b) Trustee of the company

     (c)   Employee of the company                                (d) Owners of the company

DSSSB PGT (2015 Tier II)

4. Premium received on the issue of shares is shown in

     (a)  Debit side of Profit and Loss Account                   

     (b) Credit side of Profit and Loss Account

     (c)  Assets side of the Balance Sheet                     

     (d) Liabilities side of the Balance Sheet

DSSSB PGT (2015 Tier II)

5. In case the 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

DSSSB PGT (2015 Tier II)

6. The rate of dividend on equity share is not

      (a) Fixed                                                                      (b) Floating

      (c)  Equal                                                                    (d) Suitable 

DSSSB PGT (2015 Tier II)

H-TET

 

 

 

 

1. If the share of Rs. 10 on which Rs. 8 is called up and Rs. 6 is paid, is forfeited. State with what amount the share capital account will be debited?

      (a) Rs. 6                                                                (b)  Rs. 2

      (c)  Rs. 10                                                              (d)  Rs. 8

HTET –LEVEL III 2016

2. Share can be forfeited
   (a) For non-payment of call money

      (b) For failure to attend meetings
(c) For failure to repay the loan to the bank    

       (d) For which shares are pledge as a security

HTET –LEVEL III 2016

3. The maximum share application money can be:
   (a) 5% of nominal value of shares (b) 20% of the nominal value of shares
   (c) 50% of the nominal value of shares (d) Full issue price of the shares

HTET –LEVEL III 2019

Army School

 

 

 

1.When a company issues shares at a premium, the premium amount will be received by it along with
(a) Application money                                          (b) Allotment money
(c) Calls                                                                  (d) Any of the above

PGT Commerce – Army School – 2012

2. The minimum amount called on application for issue of shares is ——– of face value.
   (a) 5% (b) 25%
   (c) 30%                                                             (d) 40%

PGT Commerce – Army School – 2012

3. To what rate does the law limit the commission payable on the issue of debentures?
   (a) 2% (b) 2 ½ %
   (c) 3 ½ % (d) 4 ½ %

PGT Commerce – Army School – 2012

4. Underwriting commission on shares as per SEBI guide lines
   (a) 4% and above (b) 3.5 – 4%
   (c) 3 – 3.25% (d) up to 2.5%

PGT Commerce – Army School – 2012

5. What rate should the commission payable on the issue of debentures not exceed?
   (a) 2.5% (b) 3%
   (c) 4% (d) 5%

PGT Commerce – Army School – 2012

UP PGT

 

 

 

 

1. X Ltd. forfeited. 30 shares of Rs. 10 each fully called up for non-payment of allotment money of Rs. 3 per share and call money of Rs. 4 per share. These shares are re-issued for Rs. 8 per share fully paid. What is the amount to be transferred to capital reserve account.
   (a) Rs. 300 (b) Rs. 60
   (c) Rs. 30 (d) Rs. 90

UP PGT – 2015

2. For which of the following purpose, share premium can be used?
   (a) In writing off the discount on debentures of the company
   (b) In writing off the preliminary expenses of the company
   (c) Issuing bonus shares
   (d) All of the above

UP PGT – 2015

3. Any balance in the share forfeiture account after all the forfeiture shares are re-issued should be–
   (a) Added to the paid up called
   (b) Transferred to goodwill account
   (c)  Transferred to capital reserve account
   (d)  Should be shown in the balance sheet under the heading share forfeiture account

UP PGT – 2015

4. A Ltd. issued prospectus inviting applications for 2000 shares. Applications were received for 3000 shares and pro-rata allotment was made on the application for 2400 shares. If Ramesh had been alloted 40 shares, how many shares he must have applied for?
   (a) 40 (b) 44
   (c)  48                                                                    (d)  52

UP PGT – 2015

 

 

 

 

M.Com (Entrance) – Delhi University

 

 

 

 

 

1. In case of Companies Accounts, when shares are forfeited, the Share Capital Account is debited by : M.Com (Entrance 2009)
(a)     Paid-up amount (b)     Nominal value of shares	(c) Called up amount (d) None of these
2. Dividends are usually paid on :                                                                             M.Com (Entrance 2010)
(a)     Authorised capital (b)     Called up capital	(c) Issued capital (d) Paid up capital
3. Which statement is issued before the issue of shares?                                        M.Com (Entrance 2010)
(a)     Memorandum of Association (b)     Prospectus	(c) Articles of Association (d) Promoters’ statement
4. A company forfeited 2,000 shares of Rs. 10 each (which were issued at par) held by A for non-payment of allotment money of Rs. 4 per share. The called up value per share was Rs. 9. On forfeiture the amount debited to share capital is :                                            M.Com (Entrance 2010)
(a)  Rs.10,000 (b)  Rs.2,000	(c) Rs. 8,000 (d) Rs. 18,000
5. Premium on issue of securities can be used for :                                                 M.Com (Entrance 2011)
(a)     Payment of dividend (b)  Transfer to Capital Redemption Reserve	(c) Payment of interest on debentures (d) Issue of fully paid bonus shares
6. X Ltd. forfeited 200 shares of Rs. 10 each on which Rs. 6 per share were paid. The company reissued 150 shares as fully paid up on a payment of Rs. 4 per share. What amount will be transferred to capital Reserve A/c?                                                                    M.Com (Entrance 2011)
(a)  Rs.1,200 (b)  Rs.300	(c) Nil (d) Rs.900
7. Upon forfeiture of shares, share capital account is debited by :                        M.Com (Entrance 2012)
(a)     Paid-up amount (b)     Nominal value of such shares	(c) Calls-in arrears (d) Called up amounts
8. X Co. Ltd. forfeited shares of Rs. 10 each on which Rs. 4 per share was paid. The company issued 40 shares @ Rs. 8 per share as fully paid. Amount transferred to capital reserve will be : M.Com (Entrance 2013)
(a)     Rs.400 (b)     Rs.240	(c) Rs.160 (d) Rs.80
9. The amount of security premium can be used wholly or in part for:     M.Com (Entrance 2013; 2014)
(a)     Writing off preliminary expenses (b)     Writing off goodwill	(c) Writing of advertising expenses (d) Purchasing fixed assets
10. The profit made an reissue of forfeited shares is transferred to :                   M.Com (Entrance 2014)
(a)     Capital Reserve (b)    General Reserve	(c) Capital Redemption Reserve (d) Profit and loss account
11. How much amount will be credited to Capital Reserve Account if 200 shares of Rs. 10 each are forfeited on which Rs. 8 per share has been called and only Rs. 2 per share has been paid, reissued at Rs. 9 per share as fully paid up.:                                                                    M.Com (Entrance 2017)
(a)     Rs.300 (b)     Rs.100	(c) Rs.200 (d) Rs.400

12. Share capital suspension account is open
13. When application money is received but balance sheet is prepared before allotment of shares
14. None of these
15. When shares are forfeited
16. When dividend is declared but not paid

M.Com (Entrance 2018)

13. As per the Section 78 of the companies act 2013 amount collected as premium on securities cannot be utilized for

        (a) Buy back of its own shares               (b) Purchase of fixed assets

        (c) Writing off preliminary expenses                 (d) Premium payable on redemption of shares

M.Com (Entrance 2018)

14. As per section 78 of the companies Act, amount collected as premium on securities cannot be utilized for:

(a)  Buy back of its own shares                     

(b)  Purchase of fixed assets

(c)   Writing off preliminary expenses                                                                                 

(d)  Issuing fully paid bonus shares to the members

M.Com (Entrance 2019)

15. Reserve capital can be called up
    (a) In an emergency only
    (b) Any time by passing an ordinary resolution
    (c) In the event and for the purpose of company being wound–up
    (d) If all directors agree

M.Com (Entrance 2020)

 

 

M.Com (Entrance) – Jamia University

 

 

 

 

 

1. The following information pertains to X Ltd. : (1) Equity share capital called up Rs. 10,00,000; (2) Calls in arrear Rs.50,000; (3) Calls in advance Rs. 20,000; (4) Proposed dividend 10%. The amount of proposed dividend payable is –

     (a) 95,000                                                                         (b) 90,000                     

(c) 98,000                                                                (d) 1,00,000

M.Com (Entrance 2017)

2. A company offers to the public 10,000 shares for subscription. The company receives application for 12,000 shares. If the shares are allotted on pro-rata basis, then applicants for 12,000 shares are to be allotted as:

     (a) 4 shares for every 5 shares applied.
(b) 2 shares for every 3 shares applied.
(c) 5 shares for every 6 shares applied.
(d) 3 shares for every 4 shares applied.

M.Com (Entrance 2017)

3. Dividends are usually paid as a percentage of
   (a) Authorised shares capital                                           (b) Net profit
   (c) Paid up capital                                                             (d) Called up capital

M.Com (Entrance 2017)

4. Select the incorrect statement –
   (a) Dividends rate for ordinary shareholders is not fixed
   (b) The payment of dividends to shareholders is a legal obligation
   (c) Ordinary shareholders are generally called owners of residue
   (d) Preference shareholders receive dividend at fixed rate

M.Com (Entrance 2016)

5. Companies profit divided among shareholders is—————
   (a) Interest (b) Reserve
   (c) Dividend (d) surplus

 

 

U.G.C. N.E.T.  Previous Year Questions

 

 

 

 

 

1. The following relate to the shares of a company. What is the correct order?

     (a)   Issue, Application, Call and forfeiture                

      (b)  Application, Call, Forfeiture and Issue

     (c)   Call, Issue, Application and Forfeiture               

     (d)   Forfeiture, Application, Issue and Call

UGC-NET Paper II (June 2011)

2. Gopal was holding 100 shares of Rs. 10 each of a company on which he had paid Rs. 3 an application and Rs. 2 on allotment but could not pay Rs. 2 on first call. Direction forfeited the above share. Share capital will be debited by:

     (a)   Rs. 1,000                                                          (b)  Rs. 700

     (c)   Rs. 500                                                             (d)  Rs. 800

UGC-NET Paper II (June 2011)

3. UAssertion (A):U Premium received on issue of shares is credited to Security premium account but not to profit and loss account.

     UReasoning (R):U Since security premium is not a trading profit, it is not distributed to shareholders.

     (a)   Both (A) and (R) are true but (R) is not correct explanation to (A)

     (b)   (A) is false but (R) is correct

     (c)   Both (A) and (R) are true but (R) is correct explanation of (A)

     (d)   (A) is correct but (R) is false

UGC-NET Paper II (June 2012)

4. ABC Ltd was incorporated with an authorised Share Capital Rs. 1,00,000 equity shares of Rs. 10 each. The board of Director of the company decided to allot 10,000 shares credited as fully paid to the promoters of the company for their services. Which account should be debited in the books of ABC Ltd?

     (a)         Promoter’s Account                                         (b)   Services Account

     (c)             Goodwill Account                                         (d) Share Capital Account

UGC-NET Paper II (June 2013)

5. The directors of X Ltd. resolved to forfeit 2000 equity shares of Rs. 10 each. On these shares Rs. 7.50 per share was paid up, but final call of Rs. 2.50 per share was unpaid. 1,000 of the forfeited shares were reissued at Rs. 7 per share. Capital Reserve Account will be credited by

     (a) Rs. 4,500                                                            (b)  Rs. 7,500

     (c) Rs. 2,500                                                             (d)  Rs. 5,000

UGC-NET Paper II (September 2016)

6. Which of the following is not true?

     (a)  When all forfeited shares are not reissued, the forfeited shares account will also show as credit balance equal to gain on forfeiture of shares not yet reissued.

     (b)  Loss on reissue of shares cannot be more than gain on forfeiture of those shares.

     (c)  At the time of forfeiture of shares, securities premium is debited along with share capital when premium has not been received                                                  

     (d)  When forfeited share are issued at premium, the premium amount is credited to capital Reserve Account.

UGC-NET Paper III (January 2017)

7. A Ltd. issued a prospectus inviting applications for 2,000 shares. Applications were received for 3,000 shares and pro-rata allotment was made on the applications of 2,400 shares. If A has been allotted 40 shares, how many shares he must have applied for?

     (a)  40                                                                            (b) 44       

     (c)  48                                                                            (d) 52

UGC-NET Paper II (November 2017)

8. X Ltd. forfeited 20 shares of Rs. 10 each, Rs. 8 called up, on which John had paid application and allotment money of Rs. 5 per share, of these 15 shares were reissued to Parker as fully paid up for Rs. 6 per share. What is the balance in the share Forfeiture Account after the relevant amount has been transferred to Capital Reserve Account?

     (a) NIL                                                                      (b)  Rs. 5

     (c) Rs. 25                                                                   (d)  Rs. 100

UGC-NET Paper II (July 2018)

9. X Ltd. Forfeited 40 shares of Rs.10 each and on which Rs.4 per share were paid. If the forfeited shares are reissued as Rs. 8 per share paid up, what is the minimum price the company must charge?

     (a) Rs. 4 per share                                                           (b) Rs. 8 per share
(c) Rs. 10 per share                                              (d) Rs. 2per share

UGC-NET Paper II (December 2018)

10. As per Section 52 of the Companies Act, 2013, the balance in the Security Premium Account cannot utilized for

(a) Payment of dividend                                       (b) Writing off discount on issue of shares

(c) Issue of fully paid up bonus share                   (d) Capital losses

UGC-NET Paper II (June 2019)

11. Following are the events which generally happen in the life of a public limited company:
    i) Public issue of shares
    ii) Firm incorporation
    iii) Preliminary expenditures
    iv) Issue of equity shares to promoters of the company
    Choose the correct sequence (chronological order) of the events from the options given below:
    (a) i) → ii) → iii) → iv) (b) ii) → iii) → iv) → i)
    (c) iii) → ii) → i) → iv) (d) iii) → ii) → iv) → i)

UGC Net Paper II (December) 2019

Unit Wise Practice Set

Introduction to Cost Accounting – Numerical Questions

Material – Numerical Questions

Labour – Numerical Questions

Overhead – Numerical Questions

Unit Wise Practice Set 

A contract consist of
(a) Mutual promises or agreement enforceable by law
(b) Agreement not enforceable by law
(c) Involuntary obligations
(d) None of the above
Who is liable for necessaries supplied to a minor?
(a) The guardian of the minor
(b) The minor
(c) His property
(d) None of the above
An auction sale is complete on the –
(a) delivery of goods
(b) payment of price
(c) fall of hammer
(d) all of the above
Where the sale is not notified to be subject to a right to bid on behalf of seller, and the Auctioneer knowingly takes any bid from the Seller or any such person, the sale shall be treated as __________________ by the buyer.
(a) unlawful
(b) illegal
(c) immoral
(d) fraudulent
A bill of exchange contains a/an
(a) unconditional undertaking
(b) unconditional order
(c) conditional undertaking
(d) conditional order
A foreigner
(a) is competent to enter into contract if he fulfils the conditions of section 11.
(b) is not competent to enter into contract
(c) can enter into contract with permission of Central Govt.
(d) can enter into contract with the permission of court

A promised to marry none else than Miss B and in default to pay her a sum of ` 1,000. Subsequently A married Miss C and Miss B sued for recovery of ` 1,000. The contract is
(a) Valid
(b) Void
(c) Voidable
(d) Enforceable
Conditions are stipulations
(a) essential to the main purpose of the contract
(b) collateral to the main purpose of the contract
(c) either ‘a’ or ‘b’
(d) neither ‘a’ nor ‘b’
9. A promissory note contains a/an
(a) unconditional undertaking
(b) unconditional order
(c) conditional undertaking
(d) conditional order
10. A contract is a contract
(a) from the time it is made
(b) from the time its performance is due
(c) at the time from its performance
(d) none of the above
11. Which of the following contracts are not recognized by Indian Contract Act, 1872?
(a) Recognizance
(b) Court Judgment
(c) Contract under seal
(d) All the above
12. Communication of acceptance is not necessary
(a) By performance of conditions of the offer by offeree
(b) By acceptance of consideration by the offeree
(c) By acceptance of benefit/service by the offeree
(d) All the above
13. Which section, of Indian Contract Act defines “performance of the conditions of a proposal is an acceptance of the proposal”?
(a) Section 6
(b) Section 7
(c) Section 8
(d) Section 9
14. The difference between an advertisement for sale and a proposal is
(a) No difference at all
(b) That a proposal becomes a promise as soon as the party to whom it is made accepts it but an advertisement does not
(c) Every case will be viewed according to the circumstances
(d) None of these
15. In a sale by sample and description, there is an implied condition
(a) that bulk of the goods correspond with the sample
(b) that bulk of goods must correspond to the description as well as the sample thereof
(c) the bulk of goods must correspond either to the description or to the sample
(d) the bulk of goods must correspond to the description only
16. Property in the goods in the Sale of Goods Act means
(a) ownership of goods
(b) possession of goods
(c) asset in the goods
(d) custody of goods
17. Who among the following cannot cross a cheque?
(a) Drawer
(b) Holder
(c) Banker
(d) Foreigner
18. The term Negotiable instrument is defined in section ________________ of the Negotiable Instrument Act,1881
(a) 2
(b) 13
(c) 12
(d) 10
19. The grace period for payment of a negotiable instrument other than payable on demand is ___________ days/months
(a) 7days
(b) 3 days
(c) 1 month
(d) 15 days
20. The maturity of a promissory note or bill of exchange is the date __________________
(a) at which it falls due
(b) of its presentation
(c) of its acceptance
(d) none of these
21. A Promissory note must be __________________
(a) in writing
(b) unconditional
(c) signed by the maker
(d) all the three
22. Acceptance is to offer what a lighted match is to a train of gun powder. This statement indicates
(a) Once an offer is accepted it results in binding contract
(b) Communication of acceptance is necessary
(c) Acceptance must be absolute & unqualified
(d) All the above
23. Appropriation of goods means
(a) separating the goods sold from other goods
(b) putting the quantity of goods sold in suitable receptacles
(c) delivering the goods to the carrier or other bailee for the purpose of transmission to the buyer with reserving the right of disposal
(d) all the above
24. Merchantable quality of goods means
(a) that the goods are commercially saleable
(b) they are fit for the purpose for which they are generally used
(c) both ‘a’ and ‘b’
(d) the quality should be of high standard
25. _____________________ is not a negotiable instrument as per customs and usage
(a) Delivery note
(b) Railway Receipt
(c) Cheque
(d) Government promissory note

Unit Wise Question Bank 

Unit Wise Practice Set

Unit Wise Practice Set 

Business Management Book : Down Load Link

Financial Accounting :- 4 Question

1. When a fixed Asset is obtained as a gift, the account to be credited is
   1. Capital Reserve A/c
   2. Goodwill A/c
   3. General Reserve A/c
   4. Donor’s A/c
2. Provision for bad debt is made as per the
   1. Going Concern Concept
   2. Entity Concept
   3. Conservatism Concept
   4. Cost Concept
3. Which of the following statements is false ?
   1. Debit balance of bank column of Cash Book is an Asset
   2. Credit side total of Discount column of Cash Book is an income
   3. Credit balance of Bank Pass book is an overdraft
   4. Debt balance of Cash column of Cash Book is an Asset
4. A fixed asset originally acquired for Rs. 20, 000 is replaced by a new asset costing Rs. 50,000. But the estimated cost of replacement of the original asset is Rs. 30,000. Hence, the capital charge equals
   1. Rs. 50,000.
   2. Rs. 20,000.
   3. Rs. 30,000.
   4. Rs. 40,000.

Corporate Accounting :- 8 Question

1. As per section 78 of the companies act, amount collected as premium on securities cannot be utilized for :
   1. Buy back of its own shares
   2. Purchase of fixed assets
   3. Writing off preliminary expenses
   4. Issuing fully paid bonus shares to the members
2. Loss on issue of debentures is treated a
   1. Current liability
   2. Current asset
   3. Miscellaneous expenditure
   4. Intangible asset
3. Accumulated profits include—
   1. Workmen’s compensation fund
   2. Superannuation fund
   3. Depreciation Fund
   4. Provision for doubtful debts
4. As – 14 is not applicable if when transferee company acquires transferor company and transferor company :
   1. Ceases to exist
   2. Separate entity is Continue to exist
   3. Valuation of inventory
   4. Applied in all cases
5. Which of the following is not a preferential creditors :
   1. Amount due under employees state insurance act for 12 months previous to the winding up
   2. Amount due to employee under amalgamation or reconstruction
   3. All sum due to employee from a provident fund, pension fund, gratuity fund or any other fund maintained for welfare of employee.
   4. Compensation under workmen’s compensation act.
6. If company changes from offering 40 days credit to 50 days credit, Which of the following statement is correct
   1. Cash generated from financing activities will decrease
   2. Cash generated from operation will decrease
   3. Cash generated from operation will increase
   4. There will be no affect on cash flow
7. A firm which has significant influence over another firm but does not actually control the firm or have a dominant influence over the firm’s actions would refer to the firm it has influence over as
   1. Subsidiary
   2. Holding company
   3. Joint Venture
   4. Associated undertaking
8. Which of the following items would not form part of the shareholders’ equity of a company on the statement of financial position?
   1. Ordinary share capital
   2. Retained Profit
   3. Trade payable
   4. Share premium

Cost and Management Accounting : 13 Question

1. Indirect labour is
   1. Raw material cost
   2. Non-manufacturing cost
   3. Product cost
   4. Period cost
2. A company has fixed costs of Rs. 1,50,000 and variable costs of Rs. 9 per unit. If sales price per unit is Rs. 12 per unit, what is the break even sales in Rupees.
   1. Rs. 2,00,000
   2. Rs. 6,00,000
   3. Rs. 4,50,000
   4. Rs. 4,80,000
3. The essentials of effective budgeting do not include
   1. Top down budgeting
   2. Sound organizational structure
   3. Research and analysis
   4. Management acceptance
4. The accounting department of a manufacturing company is an example of
   1. Cost Centre
   2. Profit Centre
   3. Investment Centre
   4. Contribution Centre
5. Raw materials are assigned to a job when
   1. Materials are purchased
   2. Materials are issued by the materials store room.
   3. Materials are received from the vendor
   4. Job is sold
6. The setting of standards is
   1. Preferably set at the ideal level of performance
   2. Managerial accounting decision
   3. Worker decision
   4. Management decision
7. A production manager in a manufacturing company would most likely receive
   1. Dispatch department overhead report
   2. Income statement
   3. Sales report
   4. Scrap report
8. A manager of an investment Centre can improve ROI by
   1. Reducing Variable and / or controllable fixed costs.
   2. Reducing sales
   3. Increasing Variable costs
   4. Increasing average assets
9. The budgeted income statement is
   1. End product of operating budgets
   2. End product of financial budgets
   3. Dependent on cash receipts and cash payments
   4. Starting point of master budget
10. Fixed production overhead are recognized as
    1. part of closing inventory costs under both absorption and variable costing
    2. product costs under variable costing
    3. product costs under variable costing
    4. period costs under absorption costing
11. In make or buy decision, relevant costs
    1. Opportunity costs
    2. Purchase price of units
    3. Production costs to be saved, purchase price of units, opportunity costs.
    4. Production costs that will be saved
12. In a company, there are zero units in beginning work in progress, 7000 units stared into production and 500 units in ending work in progress 20% completed. The physical units to be accounted for are
    1. 7000
    2. 7340
    3. 7360
    4. 7500
13. Any activity that causes resources to be consumed is called
    1. Cost Driver
    2. Non-Value added activity
    3. Facility-level activity
    4, Just-in-time activity

Unit 2 : Economics (including Micro, Macro and Indian Economy) – 25 Questions

Micro Economics: 12 Question

1. Which of the following is most appropriate for marginal rate of technical substitution of L for K (MRTSLK )
   1. The amount of K a firm increases by giving up amount of L
   2. The amount of K that can be substituted for L
   3. The amount of K that firm can give up by increasing the amount of L used by one unit and still remain on same isoquant.
   4. The amount of L that can be substituted for K
2. Which of the following is not true for Cobb-Douglas production function Q= ALαKβ
   1. α + β = 1
   2. α is the output elasticity of labour
   3. Input elasticity of substitution is more than one.
   4. β is the output elasticity of Capital
3. When all inputs are increased 5% and output of commodity increases by 10%, the firm is having
   1. Increasing returns to scale
   2. Decreasing returns to scale
   3. Indeterminant returns to scale
   4. Constant returns to scale
4. When budget line shifts parallel towards right, which of the following statement is true?
   1. The price of X increases and budget increases
   2. The price of Y increases and budget increases
   3. The price of X and Y remain constant and the budget increases.
   4. The price of X decreases and budget increases
5. The curve or locus point that shows the cost minimizing input combinations for each successive level of output with the input/price ratio held constant is known as
   1. Isocost
   2. Isoquant
   3. Expansion path
   4. Ridge line
6. If the cross elasticity of demand between X and Y is 0.62, which of the following statement is correct.
   1. X and Y are substitutes.
   2. X and Y are complementary.
   3. X and Y are not related
   4. X and Y are giffen goods
7. A manager faces price elasticity of demand for a product X equal to -0.5. Now manager wishes to increases sales of product X by 15%. By what percentage the price is to be lowered to achieve this objective?
   1. –75%
   2. –45%
   3. –7.5%
   4. –30%
8. Given total product of 9 labour units is 2, 5, 9, 12, 14, 15, 15, 14, and 12 respectively. Which unit of labour will produce zero marginal product?
   1. 6th
   2. 7th
   3. 8th
   4. 9th
9. A firm can hire 10 workers at a wage rate of Rs 10, but has to pay a wage of Rs 13 to get the 11th worker. What is the marginal cost of 11th worker?
   1. Rs 33
   2. Rs 10.2
   3. Rs 113
   4. Rs 13
10. Which of the following is not a characteristic of an isoquant?
    1. Isoquant is convex to the origin
    2. Isoquant is downward sloping
    3. Isoquant is linear in nature
    4. Different combinations of Labour and Capital produce same output on an isoquant
11. Which of the following statement is not true?
    1. MC= ∆TC/∆Q
    2. TC= AFC + AVC
    3. AVC= TVC/Q
    4. AFC= TFC/Q
12. When price elasticity of demand for chicken is 0.34, which of the following statements is true?
    1. The price elasticity of demand for chicken is inelastic.
    2. The price elasticity of demand for chicken is elastic.
    3. The price elasticity of demand for chicken cannot be determined.
    4. The price elasticity of demand for chicken is zero.
13. A firm’s demand function is p = 10 e-x/400, where p is the price per unit and x is quantity
    demanded. Find at what level of output, is the Marginal revenue zero.
    1. 800
    2. 400
    3. 100
    4. 200

Macro Economics and Indian Economy: 12 Question

1. Examine the two statements and chose the best option
   Statement 1- Higher real wealth stimulates consumer spending and decreases the quantity of goods and services demanded.
   Statement 2- the lower interest rate stimulates the investment spending and thus increases the quantity of goods and services demanded.
   1. Only statement 2 is correct
   2. Only statement 1 is correct
   3. Both the statements are correct.
   4. Both the statements are incorrect.
2. A theory of exchange rate whereby a unit of any given currency should be able to buy the same quantity of goods in all countries is called as
   1. Purchasing power parity theory
   2. Exchange rate parity theory
   3. Currency rate parity theory
   4. Interest rate parity theory
3. What is the equilibrium level of income, given C= 100 + 0.75Y and I = 25
   1. 500
   2. 750
   3. 150
   4. 250
4. Identify the correct equation
   1. Real interest rate = Nominal interest rate – inflation rate
   2. Real interest rate = Nominal Interest rate + Inflation rate
   3. Real interest rate + Nominal interest rate = Inflation rate
   4. Nominal interest rate – Real interest rate = inflation rate
5. The additional shifts in aggregate demand that result when expansionary fiscal policy increase income and thereby increasing consumer spending is explained by
   1. Multiplier effect
   2. Accelerator effect
   3. Crowding-out effect
   4. Crowding in effect
6. Short run aggregate supply curve of Keynes is
   1. Vertical
   2. Horizontal
   3. Upward sloping from left to right
   4. Downward sloping from left to right
7. Which of the following is not the reason for shift in aggregate supply curve towards left?
   1. Decrease in economy’s capital stock
   2. An economy experiences decrease in immigration
   3. Negative Technological growth
   4. Technological Progress
8. Which of the following is a flow concept
   1. Mineral resource
   2. Capital
   3. forest
   4. Income
9. Which of the following is true for Phillips curve?
   1. It shows inverse relationship between rate of unemployment and rate of increase in money wage
   2. It shows inverse relationship between rate of unemployment and rate of general price level
   3. It shows direct relationship between rate of unemployment and rate of general price level
   4. It shows a direct relationship between rate of unemployment and rate of increase in money wage
10. Marginal efficient capital as determinant of private investment does not include the following
    1. Life of the product
    2. Supply price of capital
    3. Expected yield
    4. Propensity to consume
11. Aggregate demand curve may shift towards right due to
    1. Government decides to reduce purchase of machinery
    2. Availability of investment tax credit to the firm
    3. Reduction in exports
    4. Increase in savings in economy
12. Money without intrinsic value is known as:
    1. Commodity money
    2. Demands deposits
    3. Fiat money
    4. Currency

Unit 3 : Business Mathematics and Statistics – 25 Questions

Business Mathematics: 12 Question

1. Find dy/dx if x/x-y = log (a/(x-y))
   1. x-y
   2. 1/(x-y)
   3. x/y
   4. 2-(x/y)
2. According to an investment proposal, an initial investment of Rs. 1,00,000 is expected to yield a uniform income stream of Rs. 10,000 per annum. If money is worth 8% per annum compounded continuously, what is the expected payback period, i.e, after what time, the initial investment will be recovered?
   1. 20 years
   2. 19 years
   3. 21 years
   4. 18 years
3. In the following problem, find y subject to the given condition dy/dx = 1/(2√x ) ; given that y = 1 when x = 1
   1. 0
   2. 1
   3. 1/√x
   4. √x
4. A firm’s demand function is p = 10 e-x/400, where p is the price per unit and x is quantity demanded. Find at what level of output, is the Marginal revenue zero.
   1. 800
   2. 400
   3. 100
   4. 200
5. The demand D of passenger automobiles is given by D = 0.90 I1.1 p-0.7 where I is the income and p is the price per car. Find the income elasticity of demand.
   1. 0.4
   2. 1.8
   3. 1.1
   4. 0.7
6. If A is a singular matrix |A| is ___________.
   1. 0
   2. any positive value
   3. 1
   4. any negative value
7. A person deposited Rs. 4000 in a bank at 6% compounded continuously. After 3 years, the rate of interest was increased to 7% and after 5 more years, the rate was further increased to 8%. The money was withdrawn at the end of 10 years. Find the amount
   1. 7974.8
   2. 8346.7
   3. 9212.5
   4. 8681.4
8. Under compound interest the formula for A is given by __________.
   1. A = Pnr/100.
   2. A= P (1+i).
   3. A= P (1+ni).
   4. A= P (1+i)n
9. The marginal cost function of a product is given by MC = 2(2x + 9)-1/2 where x is no. of units produced. Find the average cost of production for 8 units of production, if fixed cost is Rs 4.
   1. 0.5
   2. 1.0
   3. 2.0
   4. 1.5
10. A firm produces two products P1 and P2, passing through two machines M1 and M2 before completion. M1 can produce either 10 units of P1 or 15 units of P2 per hour. M2 can produce 15 units of either product per hour. Find daily production of P1 and P2, if time available is 12 hours of machine M1 and 10 hours of M2 per day using Matrix inversion.
    1. 60, 90
    2. 50, 75
    3. 45, 60
    4. 90, 120
11. Find w given that:
    1. 6
    2. 5
    3. 3
    4. 4
12. For what values of k, the matrix has no inverse?
    1. 3/10
    2. 10/3
    3. 10
    4. 3

Business Statistics: 13 Question

1. Which of the following is incorrect with respect to coefficient of correlation
   1. It is the sum of two regression coefficients
   2. It can be zero
   3. It can be positive
   4. It can be negative
2. Strike in a factory which stops production for a few weeks is an example of…
   i. Secular trend
   ii. Cyclical trend
   iii. Irregular trend.
   1. Only iii
   2. Only ii
   3. Only i
   4. i and ii but not iii
3. The standard deviation of 30 items in a data set is 5/6. If every item in the data set is multiplied by 6 then, the variance of the data set will be:
   1. 6
   2. 5
   3. 8
   4. 25
4. In what case would the Poisson distribution be a good approximation of the binomial distribution?
   1. N=300, q=0.99
   2. N = 18, p=0.60
   3. N=11, p=0.30
   4. N=10, p=0.60
5. For a normal curve with μ = 56 and σ = 10, how much area will be found under the curve to the left of the value 56?
   1. 0.50
   2. 0.68
   3. 0.32
   4. 1
6. Joint probability of two independent events A and B is…
   1. P ((A) × P (B))
   2. P ((A) / P(B))
   3. P ((A) – P(B))
   4. P ((A) + P(B))
7. The Arithmetic Mean of 7 observations is 100 and that of 5 is 70, the combined mean of all the 12 observations will be:
   1. 70
   2. 80
   3. 100
   4. 87.5
8. Two variables have correlation coefficient as 0.60, then what percentage of one variable is explained by other variable?
   1. 40%
   2. 36%
   3. 60%
   4. 64%
9. If Kurtosis is less than 3 then the curve is
   i. Mesokurtic
   ii. Leptokurtic
   iii. Platykurtic
   1. Only iii
   2. Only ii
   3. Only i
   4. i and ii but not iii
10. Which of the following is an example of relative measure of dispersion?
    1. Variance
    2. Coefficient of variation
    3. Standard deviation
    4. Range
11. Which of the following is not an example of compressed data
    1. Data array
    2. Frequency distribution
    3. Histogram
    4. Ogive
12. Which of the following is True with respect to a Positively Skewed Distribution?
    1. Mean > Median > Mode
    2. Mode > Median > Mean
    3. Mode > Mean > Median
    4. Median > Mode > Mean
13. Which of the following is correct?
    1. Median is not affected by extreme values
    2. Median is affected by extreme values.
    3. Mean is not affected by extreme values
    4. Mode is the middlemost point of a data set

Unit 4 : Income Tax law, Business Management, Business Law and Company Law – 25 Questions

Income Tax Law: 10 Questions

1. Income tax is an example of :
   1. Proportional tax
   2. Regressive tax
   3. Progressive tax
   4. Indirect tax
2. Which of the following statement does not hold with respect to incidence of tax ?
   1. Indian income is always taxable in India irrespective of the residential status of the taxpayer?
   2. All foreign income is taxable in the hands of resident but not ordinarily resident of India.
   3. All foreign income is taxable in the hands of resident but ordinarily resident in India.
   4. All foreign income is not taxable in the hands of non-resident in India
3. Which of the following incomes is not taxable under the head ‘Income from other Sources’?
   1. Ground rent
   2. Pension
   3. Director’s fee
   4. Interest on bank deposits
4. Which of the following is not a deduction from gross total income under section 80C?
   1. Life insurance premium
   2. Contribution towards as approved superannuation fund
   3. Contribution towards statutory provident fund
   4. Leave travel concession
5. Which of the following statements is false ?
   1. There is no difference between exemption and deduction.
   2. Tax rates are not given by the Income Tax Act but by the Finance Act which is passed in the Parliament.
   3. Income arises either on receipt or accrual basis
   4. Deduction can be less than, equal to or more than the amount of income.
6. Which of the following is not expressly allowed as deduction while computing business income?
   1. Insurance in respect of plant, machinery and furniture used for business purposes.
   2. Bonus or commission payed to employee
   3. Rent and repair expenditure of premises used for the purpose of carrying on business or profession.
   4. Litigation expenses for registration of shares.
7. While computing income under the head ‘Salaries’, exemption under House Rent Allowance is available to an employee when:
   1. The employee pays rent which does not exceed 10% of salary
   2. The employee pays rent which exceeds 10% of salary
   3. The employee lives in a house for which he does not pay rent
   4. The employee lives in his own house
8. As per the changes in income tax proposed in the Interim Budget announced on February 1, 2019 if an individual invests in the specified tax savings schemes of the government, the effective income that would be tax-free in a year, would be:
   1. Rs. 6,50,000
   2. Rs. 5,00,000
   3. Rs. 3,00,000
   4. Rs. 6,00,000
9. For the assessment year 2019-20, the income tax rate for a domestic company having total turnover up to Rs. 250 crore in the previous year is :
   1. 25%
   2. 35%
   3. 28%
   4. 30%
10. In the Interim Budget announced on February 1, 2019, the government has proposed to increase the limit for TDS applicable on interest income (from Post office/Bank deposits) to :
    1. Rs 30,000 per annum
    2. Rs 60,000 per annum
    3. Rs 50,000 per annum
    4. Rs 40,000 per annum

Business Management: 10 Questions

1. Which of the following most appropriately describes classical theory of management:
   1. everyone has desire to be efficient
   2. there is only one best of doing
   3. all of these
   4. money is only motivator
2. Decision tree is developed by
   1. Talcott Parson
   2. Vroom and Yetton
   3. Peter Drucker
   4. Herbert Simon
3. John Kotter is mainly known for
   1. human resource development
   2. motivational theory
   3. change management
   4. organizational development
4. The grouping of activities at the top of the organizational structure around two or more activities is
   1. grouping superstructure
   2. hybrid superstructure
   3. matrix superstructure
   4. cross superstructure
5. ‘People’s believe that efforts would be directed toward behaviour’ is closely based on
   1. Vroom’s theory
   2. Alderfer’s theory
   3. Proter’s theory
   4. McClelland’s theory
6. ‘Leaders with strong achievement motivation are likely to have strong concern for task objectives’. This statement is largely based on
   1. trait theory
   2. contingency theory
   3. behavioural theory
   4. social theory
7. The leadership styles like exploitative, benevolent, consultative, and participative are given by
   1. House
   2. Fiedler
   3. Likert
   4. Blake and mouton
8. The process by which organizations gain new knowledge and insights that lead to a modification in behaviour and action is
   1. organizational commitment
   2. organizational learning
   3. learning organization
   4. OB modification
9. The process through which people develop beliefs about what is right wrong and just is
   1. judgement
   2. ethics
   3. morality
   4. socialization
10. Dave Gilboa has authored a best seller book
    1. Refugee
    2. The Efficiency Paradox
    3. Factfulness
    4. The Third Plate

Business Laws: 4 Questions

1. The essential of a valid acceptance does not include:
   1. Acceptance towards completion of unlawful act.
   2. Acceptance must be unconditional
   3. Acceptance must be absolute
   4. Acceptance must be communicated
2. The essential elements of valid consideration does not include:
   1. Consideration need to be adequate
   2. Consideration to be furnished by the promise
   3. Consideration may be past, present or future
   4. Consideration as unlawful act.
3. Which of the following is a disadvantage of incorporating a Limited Liability Partnership (LLP):
   1. In certain cases the shield of limited liability may be pierced.
   2. Action of single partner can bind the LLP
   3. Unlimited members cannot be added
   4. Not allowed to raise funds
4. The applicability of the Information and Technology Act 2000 does not :
   1. Applicable on contraventions committed outside India as well
   2. Applicable on offenses
   3. Apply on Cheques drawn on Indian Bank
   4. Extend to whole of India

Company  Laws: 1 Questions

1. Which form of business does not have perpetual succession
   1. Government Company
   2. Partnership Firm
   3. Joint Stock Company
   4. Limited Liability Partnership

M.Com Entrance Delhi University Question Paper
—————————>

Held on 22th June 2016

Total 6 question are deleted

 

M.Com Entrance 2016 – Cost & Management Accounting

 

1.   Cost incurred in the past are:

            (a)   Opportunity cost                                                               (b)   Direct and historical costs

            (c)   Sunk costs                                                                            (d)   Variable Cost

2. Which of the following is often subject to further processing in order to be salable?

                    By-Products                                                                                Scrap

            (a)   No                                                                                                  No

            (b)   No                                                                                                  Yes

            (c)   Yes                                                                                                Yes

            (d)   Yes                                                                                                No

3. Cost-volume-profit relationships that are curvilinear may be analysed linearly by considering only

            (a)   Fixed and semi variable costs                                        (b)   Relevant fixed costs

            (c)   Relevant variable costs                                                   (d)   Relevant range of volume

4. A company has fixed manufacturing overhead costs of Rs. 1,00,000 and variable selling costs of Rs. 80,000. Under variable costing, how should these costs be classified.

                    Period costs                                                                                Product costs

            (a)   Zero                                                                                              1,80,000

            (b)   80,000                                                                                          1,00,000

            (c)   1,00,000                                                                                       80,000

            (d)   1,80,000                                                                                       Zero

125. 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 cost

126. Sharing of a percentage of value added is done under:

            (a)   Emerson’s differential pay plan                                   (b)   Rucker plan

            (c)   Tyler’s plan                                                                        (d)   Rowan plan

127. The scope of inventory control is:

            (a)   Related to maintaining the correct level of inventory at all times                                

            (b)   Related to fixation of stock levels for various items

            (c)   To locate the slow and non-moving items                                                                         

            (d)   All the above

128. The following factor is an avoidable cause for labour turnover:

            (a)   Lower wages                                                                      (b)   Resignation

            (c)   Retirement                                                                          (d)   Worker’s moving nature

129. Which of the following should not be considered in a make or buy decision?

            (a)   Potential use of manufacturing capacity                        

            (b)   Variable costs of production

            (c)   Potential rental income from space occupied by production area                               

            (d)   Unchanged fixed cost

130. If sales is of Rs. 5,00,000 and variable cost per unit is Rs. 50. If fixed cost is Rs. 1,00,000 and break even is reached at 1,000 units, sale price is :

            (a)   50                                                                                          (b)   100

            (c)   150                                                                                        (d)   200

 

M.Com Entrance 2016 – Financial Accounting

 

5. Accrual basis accounting:

            (a)   Results in higher income than cash basis accounting

            (b)   Leads to the reporting of more complete information than does cash basis

            (c)   Is not acceptable under GAAP                                              

            (d)   Omits adjusting entries at the end of the period

6. Which of the following is not an account?

            (a)   Sales revenue                                                                     (b)   Net sales

            (c)   Salaries                                                                                (d)   Supplies expense

7. Accounting conventions include all of the following except:

            (a)   Periodicity                                                                          (b)   Materiality

            (c)   Conservatism                                                                     (d)   Cost-benefit

8. Which of the following accounts would never be reported in the income statement as an expense?

            (a)   Depreciation expense                                                       (b)   Loss on sale of machinery

            (c)   Interest expense                                                                 (d)   Dividends expense

9. A capital reserve is built out of:

            (a)   Recurring profits                                                              (b)   Non-recurring profits

            (c)   Revenue                                                                               (d)   Reserved fund

14. The value of goodwill, according to the simple profit method, is:

            (a)   The product of current year’s profits and number of years                                           

            (b)   The product of last year’s profits and number of years

            (c)   The product of average profits of the given years and number of years                       

            (d)   None of the above

15. In case of inflationary environment:

            (a)   Cost of goods Sold as per FIFO will be higher than LIFO

            (b)   Cost of Goods Sold as per LIFO will be higher than FIFO

            (c)   Closing inventory as per LIFO will be higher than FIFO                                               

            (d)   None of the above

16. The underlying accounting principle necessitating amortization of intangible Assets is/are :

            (a)   Cost concept                                                                       (b)   Realization concept

            (c)   Matching concept                                                              (d)   Both (B) and (C)

17. The management decided that depreciation should be charged at 20% on written down basis on the closing balance of each year. Accounting is calendar year. On 1.7.2014 new machine was purchased at a cost of Rs. 50,000. What is the balance is machinery account as on 31.12.2015?

            (a)   Rs. 36,000                                                                            (b)   Rs. 32,000

            (c)   Rs. 18,000                                                                            (d)   Rs. 40,000

18. Preference shares of Rs. 2 lakhs are redeemed at par for which fresh equity shares of Rs. 80,000 are issued at a premium of 10%. What amount will be transferred to capital Redemption Reserve Account?

            (a)   Rs. 2,00,000                                                                        (b)   Rs. 1,20,000

            (c)   Rs. 1,12,000                                                                        (d)   Nil

19. When debentures are provided as collateral security, interest is paid on:

            (a)   Nominal value of debentures                                         (b)   Face value of debentures

            (c)   Discounted value of debentures                                     (d)   No interest is paid

20. The following is a non-current account:

            (a)   Inventory                                                                            (b)   Plant and machinery

            (c)   Debtors                                                                                (d)   Account Receivable

 

M.Com Entrance 2016 – Corporate Accounting

       

10. With reference to analysis and interpretation of financial statements, the current assets to the current liability ratio is said to be satisfactory, if it is:

            (a)   1 : 2                                                                                       (b)   2 : 1

            (c)   1 : 1                                                                                       (d)   1.5 : 0.5

11. X Ltd. goes into liquidation and an existing company Z Ltd. purchase the business of X Ltd. It is a case of:

            (a)   Absorption                                                                          (b)   Externational Reconstruction

            (c)   Amalgamation                                                                   (d)   None of the above

12. A and B share profits and losses in the ratio of 2 : 1. C has been admitted with 1/4th share in profits and losses. The new profit sharing ratio of the partners will be:

            (a)   2 : 1 : 1                                                                                 (b)   1 : 2 : 1

            (c)   2 : 1 : 2                                                                                 (d)   None of the above

13. The profits made during the year were Rs. 25,000 and there was a decrease in the value of current assets to the extend of Rs. 10,000. However, there was a decrease in the value of current liabilities to the extent of Rs. 5,000. Hence cash generated from operations equals:

            (a)   Rs. 20,000                                                                            (b)   Rs. 25,000

            (c)   Rs. 30,000                                                                            (d)   None of the above

          

M.Com Entrance 2016 – Math & Stat

       

21. Unit matrix written in format of square matrix is also called as:

            (a)   Identity matrix                                                                  (b)   Unidentified matrix

            (c)   Direction matrix                                                               (d)   Dimension matrix

22. At a maximum turning point:

            (a)    and                                                     (b)    and

            (c)    and                                                     (d)    and

23. y = 48x – 2x2 where y = total revenue x = output. At what output is total revenue a maximum?

            (a)   48                                                                                          (b)   12

            (c)   2                                                                                             (d)   14

24. Function f is defined by: f(x) = –2x2 + 6x – 3. Find f(–2)

            (a)   23                                                                                          (b)   –23

            (c)   27                                                                                          (d)   None of the above

25. For a new product, a manufacturer spends Rs. 1,00,000 on the infrastructure and the variable cost is estimated as Rs. 150 per unit of the product. The sale price per unit was fixed at Rs. 200. Find the break even point.

            (a)   500                                                                                        (b)   1000

            (c)   1500                                                                                      (d)   2000

26. The cost function of a firm is given by C = 2x2 + x – 5. Find the marginal cost, when x = 4.

            (a)   17                                                                                          (b)   18

            (c)   19                                                                                          (d)   20

27. Interest rate per year is 16 and compounding occurs every quarter than interest rate per compounding period is :

            (a)   0.4                                                                                         (b)   0.04

            (c)   40                                                                                          (d)   0.004

28. A sum fetched a total simple interest of Rs. 4016.25 at the rate of 9 p.c.p.a. in 5 years, What is the sum?

            (a)   Rs. 4462.50                                                                         (b)   Rs. 8032.50

            (c)   Rs. 8900                                                                               (d)   Rs. 8925

29. The difference between simple interest and compound on Rs. 1200 for one year at10% per annum reckoned half yearly is:

            (a)   Rs. 2.50                                                                                (b)   Rs. 3

            (c)   Rs. 3.75                                                                                (d)   Rs. 4

30. The effective annual rate of interest corresponding to a nominal rate of 6% per annum payable half yearly is :

            (a)   6.06%                                                                                   (b)   6.07%

            (c)   6.08%                                                                                   (d)   6.09%

31. Which of the following is used to represent a known value for the population variance?

            (a)   S                                                                                             (b)  

            (c)                                                                                           (d)   s2

32. If Spearman’s co-efficient of rank correlation is equal to one, then :

            (a)   The rankings of the two variable totally agree                                                               

            (b)   The rankings of the two variable is totally different

            (c)   All the ‘total variation’ is ‘explained’ by the regression line                                          

            (d)   The rankings of the two variable partially agree

33. This index measures the change from month to month in the cost of a representative ‘basket’ of goods and services of the type bought by a typical household :

            (a)   Retail Price Index                                                             (b)   Laspeyres Price Index

            (c)   Financial times Index                                                      (d)   Paasche Price Index

34. If we first subtract the trend value (T) for each quarter from the original value (Y), then average the values for a given quarter over successive years, then for short term data we get :

            (a)   Unseasonal data                                                                (b)   Cyclical component

            (c)   Deseasonalised data                                                         (d)   Seasonal Component

35. Discrete probability distribution in which outcome is very small with a very small period of time is classified as:

            (a)   Posterior distribution                                                      (b)   Cumulative distribution

            (c)   Normal distribution                                                         (d)   Poisson distribution

36. If the value of r2 = 0.64, then what is the coefficient of correlation :

            (a)   0.40                                                                                       (b)   0004

            (c)   0.80                                                                                       (d)   0.08

37. fpc stands for :

            (a)   Finite parameter correlation                                         (b)   Finite population coefficient

            (c)   Finite parameter coefficient                                          (d)   Finite population correction

38. …………… is a measure of lack of symmetry of data.

            (a)   Kurtosis                                                                               (b)   Skewness

            (c)   Mean                                                                                    (d)   None of the above

39. The null hypothesis (H0) is a statement about a population parameter :

            (a)   That is assumed to be true  (b) That is assumed to be false

            (c)   Mean                                                                                    (d)   None of the above

40. Two regression lines are perpendicular to each other when :

            (a)   r = 0                                                                                       (b)   r = 1/3

            (c)   r = –1/2                                                                                 (d)   r = +1

41. A binomial distribution may be approximated by a Poisson distribution provided ……….

            (a)   n is small and p is large                                                   (b)   n is large and p is small

            (c)   n is large and p is large                                                   (d)   n is small and p is small

42. The first two moments of a distribution about the value 5 of the variable are 2 and 20. The value of variance:

            (a)   16                                                                                          (b)   18

            (c)   20                                                                                          (d)   None of the above

43. What is the probability that a leap year, selected at random will have 53 Sundays?

            (a)   1/7                                                                                         (b)   2/7

            (c)   3/7                                                                                         (d)   4/7

44. The demand and supply function under perfect condition are: Y = 16 – X2 and Y = 2X2 + 4 respectively. Find the producers surplus:

            (a)   5                                                                                             (b)   11

            (c)   11/5                                                                                       (d)   5/11

45. Find the sum of the first 8 terms of the geometric sequence 1, 2, 4, 8…..

            (a)   255                                                                                        (b)   16

            (c)   –256                                                                                      (d)   128

46. Find the common ratio of the geometric sequence 4, 2, 1…..

            (a)   2                                                                                             (b)   1/2

            (c)   4                                                                                             (d)  

    

M.Com Entrance 2016 – Organization & Management

      Identify the top most goal of management:

            (a)   Legal Compliance                                                            (b)   Competitive edge

            (c)   Productivity                                                                       (d)   Work force adaptability

48. Which of the following match is incorrect?

            (a)   MeGregor-theory X & Y    (b) McClelland-Expectancy theory

            (c)   Quchi-theory Z                                                                  (d)   Hersey-Blanchard-Situational Leadership

49. An organization structure is effective if it enables individuals to contribute to the objectives of the enterprise. This is known as:

            (a)   Scalar principle                                                                 (b)   Principle of functional definition

            (c)   Principle of unity of objectives                                     (d)   None of the above

50. “Learning” and “motivation” which are influencing factors in a person’s buying choice are part of the:

            (a)   Social factors                                                                     (b)   Personal factors

            (c)   Psdychological factors                                                    (d)   Cultural factors

51. Span of management may be larger in the case of:

            (a)   Hard working subordinates                                           (b)   Loyal subordinates

            (c)   Centralised works and less responsibility                   (d)   Repetitive work and clear responsibility

52. Leadership is a function of all the following factors except:

            (a)   Work group                                                                        (b)   Product or service

            (c)   Leader                                                                                 (d)   Situation

53. Which one of the following defines Co-ordination?

            (a)   Actuating force which inspires a person to put his best for the fulfillment of a task

            (b)   Orderly arrangement of group effort to provide unity of action is the pursuit of a common purpose

            (c)   Process of transmitting information from one person to another or from one unit to another

            (d)   Process of determining what is to be accomplished and what has been accomplished and if necessary applying corrective measures

54. Consider the following basic steps involved in the process of control:
55. Identifying the strategic control points
56. Establishing the standards
57. Measuring performance against standards
58. Correcting deviations from the standards

           The correct sequence of the above steps in the process of control is:

            (a)   1, 4, 3, 2                                                                                (b)   4, 3, 2, 1

            (c)   2, 1, 4, 3                                                                                (d)   2, 3, 1, 4

55. Match List-I with List-II and select the correct answer using the codes given below the lists :

           List-I (Management Thinkers)                                                                                                                                            

           (E)   Elton Mayo                            

            (F)   Frederick W. Taylor

           (G)   Henry Fayol

           (H)   Mark Parker Follet

           List-II (Contribution/work)

1. Importance of integrating the company’s and employees’ goal
2. Social problems of Industrial management
3. General and industrial management                               
4. Principles of Scientific Management

                    E         F           G         H

            (a)   1         4           3          2

            (b)   4         3           2          1

            (c)   2         4           3          1

            (d)   3         4           1          2        

56. Which one of the following order indicates the correct logical order of managerial functions?

            (a)   Organizing, planning, directing, staffing, coordination and control

            (b)   Planning, Organizing, Staffing, Directing, coordination and control

            (c)   Planning, directing, organizing, staffing and control and coordination

            (d)   Organizing, planning, staffing, directing, control and coordination

          

M.Com Entrance 2016 – Indian Contract Act

       

57. A person, who is usually of unsound mind, but occasionally of sound mind:

            (a)   May make a contract

            (b)   May make a contract when he is of sound mind

            (c)   May not make a contract

            (d)   None of the above

58. Which one of the following is not considered to be coercion under Section 15 of the Indian Contract Act. 1872?

            (a)   A threat to commit suicide  (b) Committing an Act forbidden by law

            (c)   An act done to obtain the consent of the party           (d)   None of the above

60. There is always some existing debt in case of:

            (a)   Contract of indemnity                                                     (b)   Contract of Guarantee

            (c)   Both the above                                                                   (d)   None of the above

61. The intentional relinquishment of a claim or privilege is:

            (a)   Remission                                                                            (b)   Rescission

            (c)   Waiver                                                                                 (d)   None of the above

62. The liability of indemnifier arises:

            (a)   Only before the occurrence of loss

            (b)   Only on the occurrence of any loss to the indemnity holder

            (c)   When the indemnity holder compel the indemnifier to make good his loss even before he has suffered actual loss by paying off the claim

            (d)   None of the above

       

M.Com Entrance 2016 – Sales of Goods  Act

 

59. Sale as defined under the provisions of the sale of Goods Act, 1930 is an:

            (a)   Executed contract                                                             (b)   Executory contract

            (c)   Executive contract                                                            (d)   None of the above

 

M.Com Entrance 2016 – Indian Companies Act

 

63. Sec 2(92) of the Companies Act 2013, provides that unlimited company means:

            (a)   A company not having any limit on the number of members

            (b)   A company not having any limit on the liability of the company

            (c)   A company not having any limit on the liability of its members

            (d)   None of the above

64. Associate Company in relation to another company means a company in which that:

            (a)   The other company has a significant influence

            (b)   The other company has a significant influence, but which is not the subsidiary company

            (c)   The other company does not have a significant influence, but which is not the subsidiary company

            (d)   None of the above

65. An individual, at one point of time, can be appointed as a whole time Director in:

            (a)   Any number of companies  (b)       Only ten companies

            (c)   Only five companies                                                        (d)   Only one company

66. The companies Act 2013, prescribes that the following matters shall not to be dealt in a meeting through video conferencing:

            (a)   The approval of financial statements                          (b)   The approval of board’s report

            (c)   The approval of prospectus                                           (d)   All of the above

67. The directors participating in a board meeting through video conferencing:

            (a)   Shall constitute quorum

            (b)   Shall not constitute quorum

            (c)   Shall constitute with 3/4th members present

            (d)   All of the above

 

M.Com Entrance 2016 – Income Tax

 

68. Which of the following is not correct in respect of Income tax rules applicable for the AY 2016-17?

            (a)   Deduction u/s 80C is Rs. 1,50,000

            (b)   Deduction on account of interest on loan from house property is Rs. 2,00,000

            (c)   Surcharge is levied at the rate of 10% on individuals, HUF, AOP etc. having income exceeding Rs. 1 crore

            (d)   Deduction u/s 801 D on health insurance premium is Rs. 25,000

69. Which of the following is not a Direct tax?

            (a)   Value added tax                                                                 (b)   Income Tax

            (c)   Corporate Tax                                                                   (d)   None of the above

70. Which of the following incomes are Taxable in the hands of a Resident but Not Ordinary resident?

            (a)   Income received or deemed to be received in India, whether earned in India or elsewhere

            (b)   Income which accrue or arise or deemed to accrue or arise in India during the previous year whether received in India or elsewhere.

            (c)   Income which accrue or arise outside India and received outside India from a business controlled from India.

            (d)   All of the above

71. For FY 2015-16, the rates of short term capital gain and loan term capital gain for equity shares are :

            (a)   15% and Nil respectively    (b) Nil and 15% respectively

            (c)   15% and 10% respectively                                            (d)   Nil and Nil respectively

72. Which of the following incomes are exempt from tax u/s 10 of Income Tax Act 1961?

            (a)   Income from a house property                                      (b)   Share of Income from the firm

            (c)   Interest paid to a Resident                                              (d)   All of the above

       

M.Com Entrance 2016 – Economics

 

73. If the quantity of a commodity demanded remains unchanged as its price changes, the coefficient of price elasticity of demand is:

            (a)   Greater than 1                                                                   (b)   Equal to 1

            (c)   Smaller than 1                                                                   (d)   Zero

74. If the income elasticity of demand is greater than 1, the commodity is:

            (a)   A necessity                                                                          (b)   A luxury

            (c)   An inferior good                                                               (d)   Nonrelated good

75. The substitution effect for a fall in the price of a commodity is given by:

            (a)   A movement up a given indifference curve

            (b)   A movement from a higher to a lower indifference curve

            (c)   A movement down a given indifference curve

            (d)   Any of the above

76. The elasticity of technical substitution is measured by :

            (a)   The slope of isoquant

            (b)   The change in the slope of the isoquant

            (c)   The ratio of factor input

            (d)   None of the above

77. If we have constant returns to scale and we increase the quantity of labour used per unit of time by 10% but keep the amount of capital constant, output will:

            (a)   Increase by 10%                                                               (b)   Decrease by 10%

            (c)   Increase by more than 10%                                           (d)   Increase by less than 10%

78. An entrepreneur running a business takes out Rs. 20,000 / year as “salary” from the total receipts of the firm. The implicit cost of this entrepreneur is:

            (a)   Rs. 20,000/year                                                                  (b)   More than Rs. 20,000/year

            (c)   Less than Rs. 20,000 / year                                             (d)   Any one of the above is possible

79. The output elasticity of labor measure:

            (a)                                                                               (b)  

            (c)                                                                               (d)  

80. The best, or equilibrium level of output for a perfectly competitive firm is given by the point where:

            (a)   MR = AC                                                                              (b)   MR = MC

            (c)   MR exceeds MC by the greater amount                      (d)   MR = MC and MC is rising

81. The short run supply curve of the perfectly competitive firm is given by:

            (a)   The rising portion of its MC curve over and above the shut down point                        

            (b)   The rising portion of its MC curve over and above the breakdown

            (c)   The rising portion of its MC curve over and above the AC curve

            (d)   The rising portion of its MC curve

82. If the factor prices and factor quantities move in the same direction, we have:

            (a)   A constant cost industry                                                  (b)   An increasing cost industry

            (c)   A decreasing cost industry  (d)            Any of the above

83. At the best, or optimum, level of output for the pure monopolist:

            (a)   MR = SMC                                                                          (b)   P = SMC

            (c)   P = lowest SAC                                                                   (d)   P is the highest

84. If the monopolists incurs losses in the short run, then in the long run:

            (a)   The monopolist will go out of business                        (b)   The monopolist will stay in business

            (c)   The monopolist will break even                                    (d)   Any of the above is possible

85. In both the Chamberlin and kinked demand curve model, the oligopolists:

            (a)   Recognize the interdependence                                     (b)   Do not collude

            (c)   Tend to keep price constant                                            (d)   All of the above

86. The period of the business cycle in which real GDP is increasing is called:

            (a)   Expansion                                                                           (b)   Peak

            (c)   Recession                                                                             (d)   Trough

87. An increase in the money supply causes:

            (a)   Interest Rates to fall, investment spending to rise, and aggregate demand to rise

            (b)   Interest rate to rise, investment spending to rise, and aggregate demand to rise

            (c)   Interest rates to rise, investment spending to fall, and aggregate demand to fall

            (d)   Interest rates to fall, investment spending to fall, and aggregate demand to fall

88. Cash reserve ratio is :

            (a)   Ratio of deposits commercial banks has to keep with Central Bank                         

            (b)   Ratio of deposits commercial banks has to keep with themselves

            (c)   Ratio of deposits central Banks has to keep with commercial banks                        

            (d)   Ratio of deposits central Banks has to keep with themselves

89. The difference between Export of Import of goods is called :

            (a)   Balance of payment                                                         (b)   Balance of trade

            (c)   Balance of invisible trade                                               (d)   None of the above

90. Zero primary deficits indicates that in a government budget :

            (a)   Interest payments are equal to fiscal deficit

            (b)   Interest payments are less than fiscal deficit

            (c)   Fiscal deficit and budget deficit are equal

            (d)   There is not interest payment

91. Which of the following is not related to capital account to BOP?

            (a)   Foreign direct investment                                               (b)   Purchase of land abroad

            (c)   Investment in share abroad                                            (d)   Scholarship from abroad

92. Problem of double counting can be avoided by using:

            (a)   Final output approach                                                     (b)   Production method

            (c)   Value added method                                                         (d)   All of the above

93. A decrease in the interest rate will the level of investment since:

            (a)   The cost of borrowing will decrease

            (b)   The value of government bonds will decrease

            (c)   The return on private saving will decrease

            (d)   All of the above

94. The three approaches to measure economic activity are:

            (a)   Cost income and expenditure approach

            (b)   Product, income and expenditure approach

            (c)   Consumer, business and government approach

            (d)   Private, public and international approach

95. The Phillips curve describes the relationship between:

            (a)   The budget deficit and the trade deficit

            (b)   Savings and investment

            (c)   The unemployment rate and the inflation rate

            (d)   Marginal tax rate and tax revenue

96. Depreciation in domestic currency leads:

            (a)   Rise in Exports                                                                  (b)   Fall in Exports

            (c)   Rise in Imports                                                                  (d)   No effect

97. Which of these is a direct tax?

            (a)   VAT                                                                                      (b)   Custom Duty

            (c)   Income Tax                                                                        (d)   Excise duty

98. If money demand becomes less sensitive to interest rate changes, the LM-curve will:

            (a)   Shift to the right                                                                (b)   Become flatter

            (c)   Become Steeper                                                                 (d)   Remain unaffected

Financial Accounting, Corporate Accounting & Cost and Management Accounting – 25 Questions

Financial Accounting :- 6 Question

1. Which of the following are not true for a bank reconciliation statement
      (i) Part of double entry system
      (ii) Not Part of double entry system
      (iii) Sent by the firm to the bank
      (iv) Posted to the ledger account
      1. (ii) (iii) and (iv)
      2. (i) and (ii)
      3. (i) (iii) and (iv)
      4. (i) (ii) and (iv)

2. The outflow of funds to acquire an asset that will benefit the business for more than one accounting period is referred to as
     1. Capital Expenditure
     2. Deferred Revenue Expenditure
     3. Miscellaneous Expenditure
     4. Revenue Expenditure

3. If an accumulated provision for depreciation account is in use then the entries for the year’s depreciation would be
     1. Debit Assets Account, Credit Profit and Loss Account
     2. None of these
     3. Credit Provision for depreciation account, Debit Profit and loss Account
     4. Credit Assets Account, Debit Provision for depreciation account

4. In case of rising prices (inflation), FIFO method will :
     1. provide highest value of closing stock and profit
     2. provide highest value of closing stock but lowest value of profit
     3. provide highest value of profit but lowest value of closing stock
     4. provide lowest value of closing stock and profit

5. AS- 6 is not applicable on
     1. All of these
     2. Goodwill
     3. Forests and plantations
     4. Live Stock

6. Who is the father of Accounting
     1. Al khawarizmy
     2. AL Mazendarany
     3. Fra luca Picioli
     4. Leonardo da vinci

Corporate Accounting :- 7 Question

1. When Amalgamation is the nature of purchase, the accounting method to be followed is
     1. Consolidated method
     2. Purchase Method
     3. Equity Method
     4. Pooling of interest method

2. The Balance of Sinking fund investment account after the realization of investment is transferred to
     1. Profit and loss account
     2. Debenture redemption fund account
     3. Debenture account
     4. Sinking fund account

3. Inter-office-adjustments (net) will appear in the balance sheet of a bank under
     1. Both other assets and other liabilities as contra
     2. Either other liabilities or other assets
     3. Other liabilities only
     4. Other assets only

4. On consolidation of Balance Sheet if the total of the fair value of assets acquired is less than the whole purchase consideration then the differences should be treated as
    1. Profit on acquisition
    2. Goodwill
    3. Negative Goodwill
    4. Loss on acquisition

5. Pre-acquisition profit in subsidiary company is considered as:
     1. Capital profit
     2. None of these
     3. Goodwill
     4. Revenue profit

6. Share capital suspense account is open
     1. When application money is received but balance sheet is prepared before allotment of shares
     2. None of these
     3. When shares are forfeited
     4. When dividend is declared but not paid

7. As per the Section 78 of the companies act 2013 amount collected as premium on securities cannot be utilized for

1. Buy back of its own shares
2. Purchase of fixed assets
3. Writing off preliminary expenses
4. Premium payable on redemption of shares

Cost and Management Accounting :- 12 Question

1. Which of the following is not a reason for an idle time variance?
      1. Illness or injury to worker
      2. Machine breakdown
      3. Wage rate increase
      4. Non-availability of material

2. Calculate the prime cost from the following information:
      Direct material purchased: Rs. 1,00,000
      Direct material consumed: Rs. 90,000
      Direct labour: Rs. 60,000
      Direct expenses: Rs. 20,000
      Manufacturing overheads: Rs. 30,000
      1. Rs. 2,00,000
      2. Rs. 2,10,000
      3. Rs. 1,80,000
      4. Rs. 1,70,000

3. Information concerning A Ltd.’s single product is as follows:
     Selling price – Rs. 6 per unit
     Variable production cost – Rs. 1.20 per unit
     Variable selling cost – Rs. 0.40 per unit
     Fix production cost – Rs. 4 per unit
     Fix selling cost – Rs. 0.80 per unit
     Budgeted production and sales for the year are 10,000 units
     What is the company’s break even point
     1. 10,909 units
     2. 8,000 units
     3. 10,000 units
     4. 8,333 units

4. Following information is available of XYZ Limited for quarter ended June, 2017 :
     Fixed cost Rs. 5,00,000
     Variable cost Rs. 10 per unit
     Selling price Rs. 15 per unit
     Output level 1,50,000 units
     What will be the amount of profit earned during the quarter using the marginal costing technique?               1. Rs. 2,50,000
     2. Rs. 7,50,000
     3. Rs. 5,00,000
     4. Rs. 10,00,000

5. When the sales increase from Rs. 40,000 to Rs. 60,000 and profit increases by Rs. 5,000, the P/V ratio is ___.
    1. 25%
    2. 20%
    3. 30%
    4. 40%

6. A company makes a single product and incurs fixed costs of Rs. 30,000 per annum. Variable cost per unit is Rs. 5 and each unit sells for Rs. 15. Annual sales demand is 7,000 units. The break-even point is:
     1. 6,000 units
    2. 2,000 units
    3. 3,000 units
    4. 4,000 units

7. Process B had no opening inventory. 13,500 units of raw material were transferred in at Rs. 4.50 per unit. Additional material at Rs. 1.25 per unit was added in process. Labour and overheads were Rs. 6.25 per completed unit and Rs. 2.50 per unit incomplete. If 11,750 completed units were transferred out, what was the closing inventory in Process B?
     1. Rs. 6562.50
     2. Rs. 25,375.00
     3. Rs. 14,437.50
     4. Rs. 12,250.00

8. A job is budgeted to require 3,300 productive hours including 25% normal idle time. If the total labour cost budgeted for the job is Rs. 36,300, what is the labour cost per hour?
     1. Rs. 11.00
     2. Rs. 14.67
    3. Rs. 8.80
    4. Rs. 8.25

9. Following information is available of P Ltd. For year ended March, 2017:
4,000 units in process, 3,800 units output, 10% of input is normal wastage, Rs. 2.50 per unit
Is scrap value and Rs. 46,000 incurred towards total process cost then amount on account of abnormal gain to be transferred to Costing P & L will be:-
      1. Rs. 2,000
      2. Rs. 3,500
      3. Rs. 2,500
      4. Rs. 4,000

10. _______________ is a summary of all functional budgets in a capsule form.
      1. Flexible Budget
      2. Functional Budget
      3. Master Budget
      4. Long Period Budget

11. In ‘make or buy’ decision, it is profitable to buy from outside only when the supplier’s price is below the firm’s own _______________.
     1. Fixed Cost
     2. Prime Cost
     3. Total Cost
     4. Variable Cost

12. Fixed cost is a cost:
      1. Which do not change in total during a given period despite changes in output
      2. Which changes in total in proportion to changes in output
      3. Which remains same for each unit of output
      4. Which is partly fixed and partly variable in relation to output

Unit 2 : Economics (including Micro, Macro and Indian Economy) – 27 Questions

Micro Economics: 14 Question

1. 1. If the quantity of the commodity demanded remains unchanged as its price changes, the coefficient of price elasticity of demand is
      1. Equal to 1
      2. Zero
      3. Greater than 1
      4. Smaller than 1
   2. Which of the following changes would not shift the demand curve for a good or service?
      1. a change in the price of the good or service
      2. a change in the price of a related good or service.
      3. a change in income
      4. a change in expectations about the future price of the good or service
   3. Which of the following events would cause both the equilibrium price and equilibrium quantity of potatoes (assumed as an inferior good) to increase?
      1. a decrease in the supply of potatoes
      2. a decrease in the incomes of potatoes consumers
      3. an increase in the incomes of potatoes consumers
      4. an increase in the supply of potatoes
   4. The LAC curve is tangent to the lowest point on the SAC curve when the LAC curve is failing
      1. Sometime
      2. None of these
      3. Always
      4. Never
   5. Apple and Banana are substitutes, Low snowfall in hill areas sharply reduces the apple harvest, that would
      1. Increase consumer surplus in the market for apple and decrease producer surplus in the market for banana
      2. Increase consumer surplus in the market for apple and increase producer surplus in the market for banana
      3. Decrease consumer surplus in the market for apple and increase producer surplus in the market for banana
      4. Decrease consumer surplus in the market for apple and decrease producer surplus in the market for tea.
   6. A 3 percent increase in price of a good causes a 10 percent decrease in quantity demanded. Which
      of the following statements is most likely applicable to this good?
      1. The good is a superior good
      2. The good is a giffen good
      3. There are many close substitutes for this good
      4. The good is a necessity
   7. A production possibilities frontier shifts outward when
      1. Government increases the amount of money in the economy
      2. The economy experiences economic growth
      3. The economy abandons inefficient production methods in favor of efficient production methods.
      4. The desires of the economy’s citizens change
   8. When the price of a complement of commodity X rises, the demand for X
      1. Remains unchanged
      2. All of the above are possible
      3. Falls
      4. Rises
   9. When a tax is imposed on the sellers of a good, the
      1. supply curve shifts upward by less than the amount of the tax
      2. supply curve shifts upward by the amount of the tax
      3. demand curve shifts downward by the amount of the tax
      4. demand curve shifts downward by less than the amount of the tax
   10. At equilibrium the slope of the indifference curve is
       1. Equal to the slope of the budget line
       2. Smaller than the slope of the budget line
       3. Either equal or larger than the budget line
       4. Greater than the slope of the budget line
   11. If MC is above AC and output is rising then
       1. AFC is rising
       2. AVC is failing
       3. AVC is rising
       4. ATC is failing
   12. The term “price takers” is a characteristic of which of the following markets
       1. Monopolistic Markets
       2. Monopoly
       3. Oligopoly
       4. Perfectly Competitive Markets
   13. Economic profit
       1. Is most often equal to accounting profit
       2. Will always exceed accounting profit
       3. Will never exceed accounting profit
       4. Is always at least as large as accounting profit
   14. Stage II of production begins where the APL begins to decline                                                                    1. Always
       2. Never
       3. None of these
       4. Sometime

Macro Economics and Indian Economy: 13 Question

1. 1. Which of the following is a trade deficit
      1. Saving ˂ investment
      2. Exports ˂ imports
      3. Net exports ˂ 0
      4. All of these
   2. Given the LM curve, a decrease in taxes shifts the IS curve
      1. Towards right
      2. Towards left
      3. Any of these
      4. Either towards left or right
   3. Unemployment rate is equal . ………………………………………………………..
   4. When demand for loanable funds is given, tax incentives for saving increase the supply of loanable funds, which in turn
      1. Does not affect interest rate
      2. Increases interest rate
      3. Decreases interest rate
      4. Any of the above
   5. Deglobalisation implies all of the following except:
      1. Reducing interdependence in nation states
      2. A borderless world
      3. Non-integration of economic activities
      4. Reduction in border trade
   6. The Government of India launched a campaign in the name of ‘Make in India’ in the year
      1. 2017
      2. 2015
      3. 2016
      4. 2014
   7. Money stock M1 consists of
      1. Demand deposit plus time deposit plus currency
      2. Demand deposit plus saving deposit plus currency
      3. Demand deposit plus traveler’s cheque’s plus currency
      4. None of these
   8. In the long run when aggregate supply curve is horizontal an increase in the aggregate demand
      leads to
      1. Any of the above
      2. Shift in aggregate demand curve downward
      3. Shift in aggregate demand curve upward
      4. No change in aggregate demand curve
   9. Under floating exchange rate regime a monetary expansion will result in
      1. Increase in income and trade balance but decrease in exchange rate
      2. Increase in income and exchange rate but decrease in trade balance
      3. Increase in income but decrease in trade balance exchange rate
      4. Decrease in income and trade balance but increase in exchange rate
   10. In order to influence spending on goods and services in the short run, monetary policy is directed
       at directly influencing
       1. Unemployment rates
       2. Inflation rates
       3. Economic growth rates
       4. Interest rates
   11. Gross Domestic Product at factor cost plus net property income from abroad minus capital
       consumption is equal to
       1. Gross national product at factor cost
       2. Gross domestic product at market price
       3. Net national product at market price
       4. Net national product at factor cost
   12. Keynes famous three motives for holding money are
       1. Translation motive, precautionary motive and speculative motive
       2. Transaction motive, precautionary motive and speculative motive
       3. Transaction motive, translation motive and speculative motive
       4. Transaction motive, special motive and speculative motive
   13. In a fixed exchange rate regime, fiscal expansion results in
       1. Increase in income, exchange rate and trade balance
       2. Increase in income and exchange rate but decrease in trade balance
       3. Increase in income and trade balance but no change in exchange rate
       4. Increase in income but no change in exchange rate and trade balance

Unit 3 : Business Mathematics and Statistics – 25 Questions

Business Mathematics: 12 Question

1. If the order of matrix A is m × p. And the order of B is p × n. Then the order of matrix AB is?
   1. m × n
   2. n × m
   3. n × p
   4. m × p
2. From the following data, determine the total output to be produced by the concerned two producing sectors of an economy
   

   OUTPUT/INPUT	AGRICULTURE	INDUSTRY
   Agriculture	0.25	0.50
   Industry	0.30	0.40

   The final demand for the two producing sectors are 500 and 200 units respectively. If trhe output coefficient for labour of the two industries are respectively 0.40 and 0.60, find the total of the labour required.
   1. Agriculture sector – 950 units, Industry sector – 1250 units, 1000 hrs.
   2. Agriculture sector – 1111 units, Industry sector – 1000 units, 1500 hrs.
   3. Agriculture sector – 1333 units, Industry sector – 1000 units, 1133 hrs.
   4. Agriculture sector – 1000 units, Industry sector – 1333 units, 1200 hrs.

3. A person buys 15 kg of rice, 5 kg of dal and 2 kg of sugar. Rice costs Rs. 10 per kg, dal Rs. 30 per kg, and sugar Rs. 15 per kg. Representing the quantities bought by a row matrix and the prices by a column matrix, determine the total cost of the commodities bought by the person.
   1. Rs. 420
   2. Rs. 400
   3. Rs. 350
   4. Rs. 330
4. A small furniture manufacturer produces tables and chairs. Each product must go through three stages of the manufacturing process: assembly, finishing and inspection. Each table requires 3hrs of assembly, 2 hrs of finishing and 1 hr of inspection. Each chair requires 2 hrs of assembly, 2 hrs of finishing and 1 hr of inspection. The profit per table is Rs.120 and the profit per chair is Rs.80. Currently each week there are 200 hrs of assembly time available, 180 hrs of finishing time and 40 hrs of inspection time. Linear programming is to be used to develop a production schedule. Define the variables as follows:
   T – Number of tables produced each week
   C – Number of chairs produced each week
   What would the objective function for the above problem be?
   1. Minimize 6T + 5C
   2. Maximize 120 T + 80 C
   3. Maximize 200 T + 200 C
   4. Maximize T + C
5. Continuing with problem in Q29, which of the following would be a necessary constraint in the problem?
   1. T + C ≤ 180
   2. T + C ≤ 200
   3. T + C ≤ 40
   4. 120T + 80C ≥ 1000
6. If the demand function for an article is p=35-2x-x2 and the demand X0 is 3, then consumer surplus will be
   1. 57
   2. 47
   3. 37
   4. 27
7. For a monopolist, the demand law is p = 50 – x² and MC = 1 + x². Determine the consumer’s surplus at the price which the monopolist would like to fix.
   1.  29.7
   2.  30.02
   3.  28.58
   4.  26.54
8. Find the differential coefficient of the function:
   1.
   2.
   3.
   4.
9. Monica deposits money in a bank paying 16% interest rate compounded quarterly. If she wants to have Rs. 15,000 in her account after 5 years. How much should she deposit today?
   1. Rs. 7777.77
   2. Rs. 8040.50
   3. Rs. 6500.00
   4. Rs. 6,845.80
10. Find the effective discount rate when nominal rate of discount is 10% compounded continuously.
    1. 9.00%
    2. 9.25%
    3. 10%
    4. 9.52%
11. A loan of Rs.20000 is to be repaid in certain equal annual installments of Rs.2470 each reckoning interest at 4% p.a. compound. Find the number of such installments.
    1. 11
    2. 10
    3. 15
    4. 9
12. Vidya’s savings account has a balance of Rs.2,654.39. The interest rate is 3% compounded monthly. Find the original principal amount deposited two years ago?
    1. Rs.2500
    2. Rs.2550
    3. Rs.2475
    4. Rs.2600

Business Statistics: 13 Question

1. 1. If the probability of A is 0.5 and the probability of B is 0.2 and the probability of the union of A and
      B is 0.7, then:
      1. A and B are dependent
      2. A and B are independent
      3. A and B are mutually exclusive
      4. A and B do have an intersection
   2. If the third moment about mean is zero then distribution is
      1. Positively skewed
      2. Mesokurtic
      3. Negatively skewed
      4. Symmetrical
   3. Which of the following statements is correct –
      1. Mean is not affected by extreme values
      2. Mode is affected by extreme values
      3. None of these
      4. Median divides the data into two equal parts
   4. Which probability distribution is most likely the appropriate one to use for calculating the
      probability of the number of autos passing through a tollbooth.
      1. Poisson
      2. Normal
      3. Binomial
      4. Insufficient information to decide
   5. In inferential statistics, we study
      1. How to draw a sample from a population
      2. How to make decisions about mean, median, or mode
      3. All of these
      4. The methods to make decisions about population based on sample results
   6. A pattern of variation of a time series that repeats every year is called:
      1. Cyclical
      2. none of these
      3. Secular
      4. Seasonal
   7. The weights of students in a college is a
      1. Continuous Variable
      2. Discrete Variable
      3. Qualitative Variable
      4. Any of these
   8. The sum of squares of deviations is least if measured from
      1. Mean
      2. Variance
      3. Median
      4. Mode
   9. The mean of a distribution is 23, the median is 24, and the mode is 25.5. It is most likely that this
      distribution is
      1. Positive Skewed
      2. Asymptotic
      3. Negatively Skewed
      4. Symmetrical
   10. The Consumer Price Index is an example of which type of index?
       1. none of these
       2. Simple
       3. Multiple
       4. Composite
   11. Which of the following statement(s) is/are correct
       1. The value of coefficient of correlation can never be zero.
       2. The two regression coefficients must have same sign
       3. All of these
       4. If coefficient of correlation is 0.80 then 80 percent of variation in dependent variable is explained by independent variable.
   12. The variance of 5 numbers is 10. If each number is divided by 2, then the variance of new numbers is
       1. 5
       2. 2.5
       3. 20
       4. Cannot be determined
   13. The first moment about means is always [Question ID = 30692]
       1. Zero
       2. Positive
       3. 1
       4. Negative

Unit 4 : Income Tax law, Business Management, Business Law and Company Law – 23 Questions

Income Tax Law: 10 Questions

1. The task of administration of income tax lies with the:
     1. Central Board of Indirect Taxes
     2. Central Board of Direct Taxes
     3. Central Board of Excise and Customs
     4. Ministry of Commerce

2. Insurance commission received by the assesse is taxable under the head:
     1. Capital gains                                                                    2. Salaries
     3. Income from other sources                                       4. Profits and gains of business or profession

3. In which of the following cases, clubbing provisions would not be attracted under the income Tax Act?
    1. Remuneration received by the spouse of an individual from a concern in which the individual is having substantial interest, and where the spouse has no professional knowledge.
    2. Income of a minor child
    3. Income from assets transferred to spouse for adequate consideration
    4. Transfer of Income without transfer of asset

4. The threshold for deduction of tax at source on interest income for senior citizens has been raised in the Union Budget 2018 to:
     1. Rs. 20,000                                                                                 2. Rs. 40,000
     3. Rs. 50.000                                                                                 4. Rs. 30,000

5. For the Assessment Year 2018-19, the exemption limit for resident individuals aged 60 or above but less than 80 years is:
     1. Rs. 2,50,000                                                                             2. Rs. 5,00,000
     3. Rs. 3,00,000                                                                             4. Rs. 3,50,000

6. Which of the following is not taxable under the head ‘Income from other sources’?
     1. Dividend                                                                                   2. Winnings from lotteries
     3. Gain from transfer of capital asset                                        4. Interest on securities

7. Which of the following losses is not deductible from business income?
     1. Depreciation of funds kept in foreign currency for capital purposes.
     2. Loss of stock-in-trade due to theft.
     3. Loss of stock-in-trade due to destruction by fire.
     4. Loss of raw material or finished goods in transit

8. Which of the following statements regarding residential status of a company is not true?
     1. An Indian company is resident in India only if the control and management of its affairs is situated wholly or partly in India during the previous year.
    2. An Indian company is always resident in India.
    3. A foreign company is resident in India if the control and management of its affairs is situated wholly in India during the previous year.
     4. A foreign company is non-resident in India if the control and management of its affairs is situated wholly or partly out of India during the previous year

9. Which of the following is not chargeable to tax under the head “Income from House Property”?
      1. Rental income received by a tenant from sub-letting
      2. Rental income from a shop
      3. Rental income in the hands of owner
      4. None of these

10. According to the Union Budget 2018, the long-term capital gains tax on stocks (in respect of profits exceeding Rs. 1 lakh) has been announced as:
      1. 15%                                                                                                         2. 12%
      3. 10%                                                                                                         4. 8%

Business Management: 7 Questions

1. Which one of the following statement is not TRUE:
     1. Decision making is part of Planning function
     2. Strategy and Plan are one and the same thing
     3. Strategic management leads towards achieving long term goals
     4. Strategies focus on gaining competitive advantages

2. Scientific Management is closely related with:
      1. Henry Ford
      2. Henry Fayol
      3. AH Maslow
      4. Max Weber

3. Glass ceiling relates to:
       1. Equal pay for equal work
       2. Discrimination based on caste
       3. Whistle blowing
       4. Career growth for females

4. A key understanding to the relationship between hygiene and motivation factors is:
     1. They are interdependent
     2. They are positively related
     3. They are independent
     4. They are additive

5. Social responsibility is:
      1. None of these
      2. The obligation of an individual to behave in ethical way in society
      3. The obligation of an organization to behave in ethical way
      4. The obligation of a nation to behave in legitimate way in the interest of the society

6. Which one of the following does not drive entrepreneurship:
      1. Profitable model
      2. Bilateral relations
      3. Innovation
      4. Risk taking

7. Division of labor relates to:
     1. Distribution of work as per the ability of the worker
     2. Distribution of work as per organizational needs
     3. All of these
     4. Equal pay for equal work

Business Laws: 4 Questions

1. Section 30 of the Contract Act 1872, provides for the elements of wagering which does not include:
     1. None of these
     2. There are equal chances of gain or loss
     3. No other interest of the parties is involved
     4. The agreement is dependent on the occurrence of an event

2. A person is said to be of unsound mind for the purpose of making a contract, as per sec 12 of the Contract Act, 1872, if, he is:
     1. Intoxicated
     2. Lunatic
     3. Idiotic
     4. All of these

3. Which one of the following statement is not TRUE concerning Limited Liability Partnership
    1. Low compliance cost
    2. Hybrid system of partnership and company
    3. Most suitable for SMEs
    4. Not suitable for services sector

4. Under the sale of Goods Act 1932, the modes of effective delivery includes:
     1. Constructive delivery
     2. All of these
     3. Symbolic delivery
     4. Actual delivery

Company  Laws: 2 Questions

1. Section 2 (46) of the Companies Act 2013, defines the
    1. Subsidiary company
    2. Holding company
    3. Statutory company
    4. Associate company

2. As per the Companies Act 2013, no person shall be eligible to incorporate or become a nominee in more than ________________ One Person Company
    1. None of these
    2. One Company
    3. Ten Companies
    4. Two Companies

 

• Open

• 1
• 2-3
• 4-5
• 6-7
• 8-9
• 10-11
• 12-13
• 14-15
• 16-17
• 18-19
• 20-21
• 22-23
• 24

1. The task of administration of income tax lies with the:
   1. Central Board of Indirect Taxes
   2. Central Board of Direct Taxes
   3. Central Board of Excise and Customs
   4. Ministry of Commerce
2. Insurance commission received by the assesse is taxable under the head:
   1. Capital gains
   2. Salaries
   3. Income from other sources
   4. Profits and gains of business or profession
3. In which of the following cases, clubbing provisions would not be attracted under the income Tax Act?
   1. Remuneration received by the spouse of an individual from a concern in which the individual is having substantial interest, and where the spouse has no professional knowledge.
   2. Income of a minor child
   3. Income from assets transferred to spouse for adequate consideration
   4. Transfer of Income without transfer of asset
4. The threshold for deduction of tax at source on interest income for senior citizens has been raised in the Union Budget 2018 to:
   1. Rs. 20,000
   2. Rs. 40,000
   3. Rs. 50.000
   4. Rs. 30,000
5. For the Assessment Year 2018-19, the exemption limit for resident individuals aged 60 or above but less than 80 years is:
   1. Rs. 2,50,000
   2. Rs. 5,00,000
   3. Rs. 3,00,000
   4. Rs. 3,50,000
6. Which of the following is not taxable under the head ‘Income from other sources’?
   1. Dividend
   2. Winnings from lotteries
   3. Gain from transfer of capital asset
   4. Interest on securities
7. Which of the following losses is not deductible from business income?
   1. Depreciation of funds kept in foreign currency for capital purposes.
   2. Loss of stock-in-trade due to theft.
   3. Loss of stock-in-trade due to destruction by fire.
   4. Loss of raw material or finished goods in transit
8. Which of the following statements regarding residential status of a company is not true?
   1. An Indian company is resident in India only if the control and management of its affairs is situated wholly or partly in India during the previous year.
   2. An Indian company is always resident in India.
   3. A foreign company is resident in India if the control and management of its affairs is situated wholly in India during the previous year.
   4. A foreign company is non-resident in India if the control and management of its affairs is situated wholly or partly out of India during the previous year
9. Which of the following is not chargeable to tax under the head “Income from House Property”?
   1. Rental income received by a tenant from sub-letting
   2. Rental income from a shop
   3. Rental income in the hands of owner
   4. None of these
10. According to the Union Budget 2018, the long-term capital gains tax on stocks (in respect of profits exceeding Rs. 1 lakh) has been announced as:
    1. 15%
    2. 12%
    3. 10%
    4. 8%

1. Which one of the following statement is not TRUE:
   1. Decision making is part of Planning function
   2. Strategy and Plan are one and the same thing
   3. Strategic management leads towards achieving long term goals
   4. Strategies focus on gaining competitive advantages
2. Scientific Management is closely related with:
   1. Henry Ford
   2. Henry Fayol
   3. AH Maslow
   4. Max Weber
3. Glass ceiling relates to:
   1. Equal pay for equal work
   2. Discrimination based on caste
   3. Whistle blowing
   4. Career growth for females
4. A key understanding to the relationship between hygiene and motivation factors is:
   1. They are interdependent
   2. They are positively related
   3. They are independent
   4. They are additive
5. Social responsibility is:
   1. None of these
   2. The obligation of an individual to behave in ethical way in society
   3. The obligation of an organization to behave in ethical way
   4. The obligation of a nation to behave in legitimate way in the interest of the society
6. Which one of the following does not drive entrepreneurship:
   1. Profitable model
   2. Bilateral relations
   3. Innovation
   4. Risk taking
7. Division of labor relates to:
   1. Distribution of work as per the ability of the worker
   2. Distribution of work as per organizational needs
   3. All of these
   4. Equal pay for equal work

 

1. Section 30 of the Contract Act 1872, provides for the elements of wagering which does not include:
   1. None of these
   2. There are equal chances of gain or loss
   3. No other interest of the parties is involved
   4. The agreement is dependent on the occurrence of an event
2. A person is said to be of unsound mind for the purpose of making a contract, as per sec 12 of the Contract Act, 1872, if, he is:
   1. Intoxicated
   2. Lunatic
   3. Idiotic
   4. All of these
3. Which one of the following statement is not TRUE concerning Limited Liability Partnership
   1. Low compliance cost
   2. Hybrid system of partnership and company
   3. Most suitable for SMEs
   4. Not suitable for services sector
4. Under the sale of Goods Act 1932, the modes of effective delivery includes:
   1. Constructive delivery
   2. All of these
   3. Symbolic delivery
   4. Actual delivery

 

1. Section 2 (46) of the Companies Act 2013, defines the
   1. Subsidiary company
   2. Holding company
   3. Statutory company
   4. Associate company
2. As per the Companies Act 2013, no person shall be eligible to incorporate or become a nominee in more than ________________ One Person Company
   1. None of these
   2. One Company
   3. Ten Companies
   4. Two Companies