1 According to any change in policy

should never be made

is not possible

should be disclosed

requires permission of the Institute of Chartered Accountants of India

2 Following is an example of an accounting policy:

Entity

Consistency

Going concern

Valuation of stock

3 Which of the following statements is false?

Issued capital can never be more than the authorised capital.

In case of under-subscription issued capital is less than subscribed capital.

Uncalled capital may be converted into reserve capial.

Paid-up capital is equal to Called-up capital less Calls in arrears.

4 Which of the following indicates 'Depreciable Amount' as defined under AS 6

Historical cost

Market value

Realisable value

Net Replacement value

5 Receipts and Payments Account records transactions of

Revenue nature only

Capital nature only

Both Revenue and Capital nature

Credit transactions only

6 A and B are partners sharing profits in the ratio 1 2. C is admitted and the new profit sharing ratio is 1 2 3. Sacrificing ratio is

1:3

2:1

3:1

1:2

7 As per Section 78 of the Companies Act, Securities Premium Ale can be used

only for making partly paid shares as fully paid up

only for issuing rights shares

only if any allotment money is still unpaid

only for issuing fully paid bonus shares

8 On amalgamation of companies, under purchase method, any excess of purchase consideration over net assets acquired should be recognised as

Revenue profit

Revenue loss

Capital reserve

Goodwill

9 Excess of average profit earned by the firm over and above its normal profit is

Bumper profit

Normal returns

Super profit

Excess profit

10 Minority interest consists of

face value of shares held by outsiders

proportionate capital profits

proportionate revenue profits

All of the above

11 Cost Accounting

discloses past data

is used even by outside entities e.g. investors, creditors, banks etc.

discloses current data or future estimates

cannot be used for managerial decisions

12 Prime Cost

Direct Material Direct Labour Indirect Expenses

Indirect Labour Direct Expenses Selling Expenses

Direct Material Direct Direct Expenses

Indirect Material Direct Labour Administrative Expenses

13 Job costing is suitable for

readymade garments

motor workshop

flour mills

oil mills

14 Abnormal loss is charged to

stock account

process account

normal loss account

costing profit and loss account

15 When PN ratio is 0·6, Marginal cost is 20, then Selling price is

40

60

50

80

16 Cost control is a

corrective function

preventive function

dynamic function

secondary function

17 Closing stock in costing books is valued at

cost or market price whichever is higher

cost or market price whichever is less

cost of production

factory cost of the goods produced

18 The classification of fixed and variable cost has a special significance in the preparation of

cash budget

zero-based budget

capital budget

flexible budget

19 The standard and the actual requirements of material of a company are as under:
Standard -2400 units at the rate of 20 per unit
Actual -2600 units at the rate of 19 per unit
The material cost variance is

1,400 (Adverse)

2,400 (Adverse)

1,400 (Favourable)

2,600 (Adverse)

20 An important feature of cost centre is that

it uses only monetary information

it has clearly defined boundaries

it must be in one specific location only

it must be an area of the business through which product passes

21 As per Section of the Income-Tax a period of 12 months commencing from 1st day of April every year.

Assessment year

Previous year

Accounting year

Calendar year

22 Shivaji University is assessable under the Income Tax Act as

an individual

a local authority

artificial judicial person

None of the above

23 Income which accrues outside India from a business controlled from India is taxable j in case of

Resident only

Not ordinarily resident

Both ordinarily resident and not ordinarily resident

Non-resident

24 Entertainment allowance is deductable to the extent of 5,000 for

Private co-employee

Govt. employee

Both of and

None of the above

25 Winning from lotteries, Crossword puzzles, Horse races and Game shows etc., are casual incomes and hence they are

fully exempt

exempt upto 5,000

fully taxable

None of the above

26 Gratuity received by Govt. Employee is

fully taxable

fully exempt

partly taxable

None of the above

27 Service tax is normally

paid and borne by the person who provides service

paid and borne by the person who receives service

paid by the person who provides service and borne by the person who receives service

None of the above

28 'Goods' are defined under MVAT Act, 2002 to include

Lottery tickets

Growing crops

Actionable claims

Immovable property

29 Payment of Excise Duty depends on

removal of goods from the place of removal

manufacture of goods in the factory

deemed manufacture of goods

removal of goods for branch transfer

30 Loss arising from business or profession can be carried forward and set-off but only against profits and gains from business or profession

for 4 succeeding assessment years

for 8 succeeding assessment years

for 16 succeeding assessment years

None of the above

31 U/S 208 of Income Tax Act, it is obligatory to pay advance tax during the financial year in every case where the advance tax payable is

20,000 or more

10,000 or more

5,000 or more

50,000 or more

32 Tax invoice is to be issued

only by registered dealer

only by an importer

only by a manufacturer

by any dealer registered or unregistered

33 Test checking is

checking the transactions which are tested

checking the selected transactions

checking the vouchers only

checking cash memos only

34 Verifying the signature of the authorised official on the voucher during vouching helps the auditor to check the

occurrence of transaction

amount of transaction

validity of transaction

period of transaction

35 The main object of an audit is

expression of opinion

detection and prevention of fraud and error

depends on the type of audit

Both and

36 The Board of Directors shall appoint first auditor of the company

within one month of completion of capital subscription stage of the company

within one month of promotion of the company

within one month of commencement of business of the company

within one month of incorporation of the company

37 Computer Assisted Audit Techniques (CAAT) are the techniques used for audit purposes by the

Computer itself

Audit

Auditor's assistants

Auditor and his assistants

38 When an auditor is not able to form an opinion about the true and fair view of the accounts he gives

Qualified Report

Negative Report

Disclaimer of Opinion

Clean Report

39 Statutory Atidit of Bank is an example of

Concurrent Audit

Continuous Audit

Balance-Sheet Audit

Revenue Leakage Audit

40 Concurrent Audit is

Continuous Audit

Internal Check System

Internal Audit System

None of the above

41 The Government of India has two main regulatory arms to control Financial System in India:

SBI and Commercial Bank

RBI and SBI

RBI and Rural Development Bank of India

RBI and SEBI

42 Remove odd man out from the following:

Market Mortgages

Treasury Bill Market

Industrial Security Market

Indigenous Bankers

43 Which type of ratio indicates how the equity stock of the company is assessed in capital market?

Debt-equity ratio

Valuation ratio

Profitability ratio

Turnover ratio

44 The Company Law Board has its principal branch at

Chennai

Mumbai

Kolkata

Delhi

45 The technique of acquiring material and manufacturing goods only as needed to satisfy customers orders is called as

Just In Time

Maintaining levels of stock

Buffer Stock

Economic Order Quantity

46 The insurance sector was opened up to the private sector in

December 1991

August 2000

April 1996

October 2004

47 The Capital Issues (Control) Act 1947 (CICA) was repealed in the year

1956

1972

1980

1992

48 From the ones stated below which function of Financial Management is not of a routine nature

Maintaining custody of securities and other valuable papers

Safeguarding of cash receipts and payments

Record keeping and reporting

Evaluating financial performance

49 Terminal cash flow is calculated as

After tax salvage value from new asset -After tax salvage value of old asset (if retained)

Operating cash flow from new asset -Operating cash flow from old asset which is retained

Cost of new asset -Cost of old asset

Cash flow with project -Cash flow without project

50 Which of the following is zero interest bond?

Deep discount bond

Floating rate bond

Commodity linked bond

Bonds with embedded option

51 The opportunities to respond to changing market conditions and influence the customer of a project is known as

Real option

Time option

Flexibility option

None of the above

52 The main symptom of undertrading is

low inventory turnover ratio

high inventory turnover ratio

high current ratio

very efficient credit management

53 The credit for initiating Merchant Banking Services in India goes to

SBI

RBI

Standard Chartered Bank

Grindlays Bank

54 Modigliani and Miller approach to capital structure maintains that

the overall cost of capital changes as per the changes in debt-equity ratio

the overall cost of capital does not change with the changes in debt-equity ratio

the overall cost of capital some times changes as per debt-equity ratio

None of the above

55 Which one of the following is not the assumption of Modigliani and Miller theorem?

There is no tax advantage/disadvantage associated to dividend

The investment and dividend decisions are independent

One firm can issue stock without incurring transaction cost to raise money

Stock market places more weight on dividend than retained earnings

56 What will be the dividend per share of a company for the year 2011
When -EPS 3
DPS 1.2
Target payout ratio 0·6
Adjustment rate 0·7
Apply Lintner Model.

1·62

1·26

1·66

2·16

57 Watered capital means, the difference between

long term working capital and short term working capital

net working and gross working capital

the book value and the realisable value of assets

the market value and book value of assets

58 Capital structure refers to the composition of tirm's

long term funds comprising of equity, preference shares and long term loans

short term funds comprising of cash, creditors, overdrafts, purchase/discounting of bills and public deposits

long term funds comprising lease financing, accumulated earnings and inter corporate deposits

short term funds comprising preference shares, short term loans from banks

59 The exact extent of time required for a firm to recover its initial investment in a project as calculated from cash inflows is known as

Payback period

Lead time

Reorder time

Waiting period

60 Which profitability ratio is not related to sales?

Material consumption ratio

Conversion cost ratio

Return on investment ratio

Expense ratio

61 Commercial Bill Market is part of

Organised money market

Unorganised money market

Stock market

None of the above

62 MIGA is related to

Cargo Insurance

Life Insurance

Non-Life Insurance

FDI Insurance

63 Indigenous bankers are regulated by

Reserve Bank of India

Ministry of Finance

Registrar of Co-operative Societies

None of the above

64 IMF is related to assistance towards

Capital A/c of BoP

Current A/c of BoP

SDR A/c of BoP

Gold Reserves A/c of BoP

65 Major players in the money market are

General Public

IDBI, ICICI, IFCs

Stock Exchange

RBI, NBFCs, State Government, PSUs

66 LIBOR is related to calculation of

Reserves and Surplus

Depreciation

Amortisation

International Based Interest Rates

67 Identify the credit rating agency of India.

S&P

Moody's

CARE

ICICI

68 Offshore Financial Centres are located at

Mumbai

London

Switzerland

New York

69 What is the meaning of Universal Banking?

Banks which caters to the universe

Functions offered by banks are univeral in nature

It is a name of a Foreign Bank

One-stop shop for all banking services

70 Crisis in European Union is related to

Debts

Deficits

Profits

Losses

71 Which is the institution established in 1964 for mobilisation of small savings in India?

SIDBI

UTI

SFCs

ECGE

72 Which credit rating agency downgraded Indian banking performance recently?

CRISIL

Moody's

S&P

IBA

73 Name the intermediary that has to register with SEBI.

Commodity exchange

Co-operative banks

Merchant banks

None of the above

74 CRR is related to

Credit Rating Ratio

Courier Representative Relationship

Customer Repo Rate

Controlling Liquidity Ratio

75 NABARD is alan

All India Financial Institution

Specialised Financial Institution

Investment Institution

Refinance Institution

76 A complex set of forces affects the nature of organisation; one of these is

Structure

Goals

Interpersonal relationship

Research

77 A type of organisation chart which shows the position and authority is

Departmental chart

Master chart

Personnel chart

Circular chart

78 Which of the following statements is correct for formal organisation?

There is no need for co-ordination

There is a network of personal and social relations

The main purpose is to develop relationship

There is superior-subordinate relationship throughout the organisation

79 It is sometimes referred to as scalar organisation.

Functional organisation

Line organisation

Line Staff organisation

Matrix organisation

80 Which one is applicable to informal organisation

Superior-subordinate relationship is absent

Created by top management deliberately and consciously

It can be shown through organisation chart

Communication is normally through formal channel

81 Principal of Unity of Command means

The subordinate should receive orders and instructions from only one supervisor

The flow of authority should flow from top to bottom

There must be unity of purpose

All activities must be co-ordinated effectively

82 Status attached to an individual due to his association with another person who has a status is known as

Functional status

Scalar status

Positional status

Ascribed status

83 Following statement is true as a characteristic of team building

A team possesses high degree of inter-personal communication

Leadership of a team is focused on one individual

They share individual responsibility

Decision-making is done by the leader of the team

84 Disadvantage of flat organisation is

problem of team work

it is expensive

it creates many levels

not suitable for routine and standardised activities

85 Which is not the basic concept of organisational behaviour?

Individual differences

Perception

A whole person

Non-motivated behaviour

86 Expectancy theory of motivation was developed by

Victor Vroom

Clayton Alderfer

George Terry

Douglas McGregor

87 Conditions that tend to cause stress are called as

Frustration

Stressor

Depression

Tension

88 Which of the following is not a type of communication

Formal communication

Vertical communication

Breakout communication

Upward communication

89 Intervening variables of quality of work life consists of

Individual factors

Job satisfaction

Organizational factors

Job factors

90 What is the strength of a person's preference or desire for a particular reward?

Valence

Expectancy

Instrumentality

Dependence

91 TQM consists of

Defect-free Approach

System Approach

Synergy in Team work

All of the above

92 The followers of charismatic leaders believe that their leader

avoids power and authority

encourages them to express. their ideas and suggestions

keeps all power with himself

possesses divinely inspired qualities

93 ISO stands for

International Standards Operation

Indian Standards Organisation

International Standards Organisation

Industrial Standards Operation

94 What is the normal periodic feedback (to assure that quality system of a certified company is maintained) performed by the accredited agency's registrar called as

Corrective action

Surveillance

Pre-assessment

Preparation of Quality Manual

95 What is the role requirement associated with membership in one group conflicting with membership in another group called as

Inter-sender role conflict

Inter-role conflict

Intra-sender role conflict

Person role conflict

96 Who can become a partner of a partnership firm

Minor child

Registered company

Twenty-year-old widow of a deceased partner

An alien enemy

97 Which of the following is conclusive evidence of partnership?

Business

Profit sharing

Mutual agency

None of the above

98 Which of the following is a disadvantage of incorporation (Registered Association)

Separate legal entity

Name and Common Seal

No unlimited liability

No citizenship of India

99 Which of the following statements is "true" in case of co-operative society?

Any society can be registered under the Act

Object of the co-operative society is distribution of profit among its members

Society can sue in its own name

Bye-laws of the society prevail on the provisions of the Co-operative Societies Act

100 Who can become a member of a registered company under Companies Act 1956

Minor

Foreigner

Any other company

All as mentioned above

101 Which of the following rights is "Right of Lien"

Right to regain possession

Right to acquire possession through court

Right to retain possession

Right to give any property on lease

102 Which of the following is not included in the definition of "Goods" under Sale of Goods Act 1930?

Growing grass on land

Shares

Money

Machinery attached to the land which can be detached

103 Which of the following statements IS "True" under Negotiable Instruments Act 1881

Cheque has two parties

In Bill of Exchange Drawer and Drawee can be the same person

General crossing of cheque bears name of the banker

Stamp is not required in case of Inchoate Instrument

104 Under what circumstances Transferee of the Negotiable Instrument acquires "better title"

In case of not-negotiable crossing

When the transferee is "Holder-in-order-course"

The assignee of the negotiable instrument

When the instrument is forged and transferred to the subsequent transferee

105 Which of the following is an "offer" under Indian Contract Act 1872

A quotation of prices

Advertisement inviting tenders

Advertisement announcing "Auction Sale" by Court

None of the above

106 Which of the following statements is untrue under Indian Contract Act 1872

Person of unsound mind can enter into a valid contract during the period oflucid interval

Oral contract is a valid contract

Acceptance of an invitation to dinner forms a valid contract

Registration is compulsory in case of lease agreement

107 Quasi contracts are also known as

Speciality contracts

Implied contracts

Contracts of record

Statutory contracts

108 Who is not held to be a consumer from the following list?

Bank customers

A passenger travelling by train

Tenant

Allottee of a plot by State Housing Board

109 Who cannot be a complainant under the provisions of Consumer Protection Act?

Any registered voluntary consumer association

Central Government

Legal heir or representative of a deceased consumer

Patient receiving mewcal treatment in a Government Hospital

110 Which of the following is not the jurisdiction of District Forum

To entertain complaints where the value of goods or services and compensation exceeds 20 lakhs

Appellate jurisdiction

Supervisory jurisdiction

All of the above

111 State the period for which "Patent" is granted by the Controller to the Inventor under the Patents Act 1970

60 years

20 years

For life

10 years

112 Who is empowered to prescribe, revise, or change the fees under Bombay Shops and Establishment Act?

Central Government

State Government

Bombay Municipal Corporation

None of the above

113 Which of the following statements is not true in case of proprietorship?

Easy to get loan

Could run it from home

Less legal formalities

Fewer records to maintain

114 Under the provisions of FEMA, a resident in India is the one who has stayed in India for during the course of previous financial year.

less than 180 days

more than 182 days

180 days

None of the above

115 "Authorised Person" under FEMA means

a person authorized to deal in Foreign Exchange

a person having authority to issue passport

member of the appellate tribunal for Foreign Exchange

legal practitioner authorized to deal with the cases under FEMA

116 Which segmentation divides market into groups based on consumer knowledge, attitude, use or response to a product

Psychographic segmentation

Demographic segmentation

Behaviouristic segmentation

Age and life cycle segmentation

117 Which of the following groups would you consider on priority, when a new product is to be introduced into the market?

Competitors

Consumers

Dealers

Employees

118 It is a period of slowdown in sales growth because the product has achieved acceptance by most potential buyers.

Growth

Decline

Introduction

None of the above

119 Product Positioning is an act of

distributing through retailers

distributing through wholesalers

marketing through internet

occupying a distinct image in the customers' mind

120 Marketing myopia refers to

Broad perception of marketing

Narrow perception of marketing

Scope of marketing

Functions of marketing

121 Wait and Watch Strategy may be followed during the following stage of the life cycle of a product

Introduction stage

Growth stage

Maturity stage

Decline stage

122 Select a proper reason for Skimming Price Policy.

There is greater elasticity of demand

To discourage rivals to enter in market

At initial stage there is less elastic demand

To have stronghold on the marketshare

123 Every Day Low Pricing (EDLP) is a type of

Probe pricing

Trial pricing

Value pricing

Standard pricing

124 As a producer, you want to distribute your product directly to consumers. What is this strategy called

Direct marketing

Indirect marketing

Advertising

Niche marketing

125 Stagnation of sales takes place during

Growth stage

Decline stage

Maturity stage

All of the above

126 The last step in relationship marketing is

To prepare detailed job descriptions for all relationship managers

To co-ordinate and review performance of relationship managers

To assign relationship manager to serve customer better

To remain in touch with customer

127 The CIF Price Quotation used in export marketing means

Cost, Insurance Premium and Freight

Cost Including Premium

Cost Including Freight

Cost, Interest and Freight

128 A Letter of Credit is obtained by

An Importer

An Exporter

An Export House

A Clearing Agent

129 European Union originally consisted of

Seven countries

Six countries

Eleven countries

Fifteen countries

130 As per the WTO agreement, TRIMs allows

foreign investment at par with domestic investment

exclusive marketing rights in domestic market

reduction in tariff duties on marine products

None of the above

131 The duty levied by Customs officials on the imported goods based upon the value of goods is called

Specific duty

Ad Valorem duty

Octroi

None of the above

132 The World Trade Organisation started functioning from

1st January 1980

1st January 1975

1st January 1995

1st January 1990

133 The document of "title to goods" exported is called

Certificate of Origin

Shipping Bill

Bill of Lading

Consular Invoice

134 Which one of the following is not a Tariff Barrier?

Octroi duties

Anti-Dumping duties

Transit duties

Countervailing duties

135 The Import Export Code Number is issued by

Reserve Bank of India

DGFT

ECGC

EXIM Bank

136 Environmental Scanning is one of the steps of

HRD

Planning

HRP

Job designing

137 What is the participative performance appraisal method?

Human Resource Accounting Method

Management by Objectives Method

Behaviourally Anchored Rating Method

360 Degree Appraisal

138 A type ofinterview in which group of people who come together to conduct an interview is

Formal interview

Stress interview

Informal interview

Panel interview

139 The style of leadership which is flexible and adaptable is

Democratic

Autocratic

Intellectual

Situational

140 The popular method used for redressing the grievances of employees is

Step Ladder Method

Field Review Method

Critical Incident Method

Checklist Method

141 The process under which a Senior Manager acts as a friend, philosopher and guide to new recruit for his self-development and growth is

Role playing

Job analysis

Team building

Mentoring

142 Invisible barrier to promotion based on race, community, tribe, nationality, etc. is called as

Transfer

Glass ceiling

Demotion

Degradation

143 The approach based on non-violence and truth to resolve industrial conflicts is

Sociological Approach

Psychological Approach

Gandhian Approach

Human Relations Approach

144 Which method of management training is not a part of 'off the job method'

Simulation

Project-assignment

Role playing

Case-study

145 The Indian Trade Union Act was brought into operation from

1st June 1949

1st June 1926

1st June 1967

1st June 1984

146 Bargaining between all the trade unions of workers in the same industry through their federal organisation is known as

Multiple Employee Bargaining

Single Plant Bargaining

Multiple Plant Bargaining

Mutual negotiations

147 The Industrial Disputes Act 1947 provides

Two-tier system of adjudication

Three-tier system of adjudication

Four-tier system of adjudication

Five-tier system of adjudication

148 Non-monetary benefits given to employees include

Bonus

Knick-knacks

Pension

Provident Fund

149 This is to eliminate the risks posed by the operation of machines, by the processors of the manufacture of products and by the structure and layout of plants and equipment.

Safety training

Safety organisation

Safety engineering

Safety contests

150 An example of a secondary strike is

Listening or cat-call strikes

Token or protest strikes

Sympathy strikes

Tool-down or pen-down strikes