Rajasthan Public Service Commission 2016
Paper Account And Business StatisticsI
Ques: 150
Time: 3 Hours
Ques
In Govt. company the share of Central Govt in paid up capital must be at least
51%
49%
50%
75%
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51%
49%
50%
75%
Ques
Which of the following is foreign company
A company Incorporated outside India and also has a place of business outside India.
A company Incorporated in India and has place of business in India.
A company Incorporated outside India and has a place of business in India.
A company Incorporated in India and has a place of business outside India.
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Ques
The Excess price received over par value of share should be credited
Reserve Capital a/c
Capital Reserve a/c
Securities Premium a/c
Call in advance a/c
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Ques
X Ltd forfeited 2000 shares of Rs 10 each called up Rs 8 per share due to Non payment of call money of RS 3
per share, share forfeiture a/c will be credited by
10,000/2)
16,000/3)

20,000/

.... .... .. 10 ..... .... 2000 ... ... .. 8 ..... ..... ... ..... ... .. 3 ..... ..... ... .... ..... ..
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10,000/2)
16,000/3)

20,000/Ques

While granting approval to any scheme of capital Reduction, Court may direct to company to add following
words to its name for such period as it thinks fit.
And reduced
Unlimited and Reduced
Liquidated
Limited and Reduced
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Ques
For capital Reduction under Internal Reconstruction approval is required from
Share holders
Court
Articles of Association
All of these
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Ques
Which of the following should be deducted from the called up share capital to find out paid up capital.
Calls in advance Amount
Share forfeities Amount
Calls in Arrears Amount
Discount on Issue of Shares Amount.
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Ques
Maximum Amount that can be collected as premium as percentage of face value.
Unlimited
80%
50%
10%
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80%
50%
10%
Ques
The Securities Premium amount may be used by company
Write off any Loss on sales of Fixed Assets.
Write off expenses, discount on the Issue of Debenture
Payment of Dividend
Write of any loss of Revenue Nature
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Ques :10
A company can not issue redeemable preference shares for a period more
5 Years
10 Years
15 Years
20 Years
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5 ..
10 ..
15 ..
20 ..
Ques :11
Which of the following can not be used for the purpose of creation of capital redemption Reserve account
Credit balance of Profit Loss a/c
General Reserve a/c
Unclaimed Dividend a/c
All of these
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Ques :12
Which of the following account can be used for transfer of capital redemption Reserve Account
General Reserve Account
Profit prior to Incorporation
Share forfeited Account
Securities Premium Account
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Ques :13
The Present Value of the future contribution of employees is related with
Human Resource Accounting
Inflation Accounting
Social Accounting
Responsibility Accounting
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Ques :14
Which of the following statement is true.
Debenture holder is owner of a company
A Debenture holder can get his money back only on Liquidation of the Company.
A Debenture Issued at discount can be redeemed at Premium.
A Debenture holder will receive Interest from company only if company makes Profit.
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Ques :15
Value Added statement is prepared from
Profit and Loss Statement
Balance Sheet
Cash Flow Statement
Fund Flow Statement

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Ques :16
Cost of control means
Goodwill
Capital Reserve
Goodwill or Capital Reserve
None of these
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Ques :17
Which of the following is false
A company can Issue Redeemable Debenture
A company can buy its own debenture.
A company can buy its own share
A company can Issue Debenture with voting Right.
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Ques :18
According to Table F of Schedule I of Company Act the maximum rate of interest on Calls in Arrear can be
P.A.
P.A.
10% P.A.
15% P.A.
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10% .....
15% .....
Ques :19

When Debentures are Issued as collateral Securities against any loan then holder of such Debenture is entitiled
to Interest.
On amount of Loan
At Amount of Debenture
Both (On amount of Loan) and (At Amount of Debenture)
None of these
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Ques :20
How many companies are involved in Internal Reconstruction
One
Two
Four
Unlimited
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Ques :21
Methods of Accounting for Amalgamation of companies are/is
The Pooling of Interest Methods
The Purchase Method
Both (The Pooling of Interest Methods) and (The Purchase Method)
None of these
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Ques :22
When two or more than two companies Liquidate to form a new company, it is called
Amalgamation of Companies
Absorption of Companies
Internal Reconstruction of company
Purchase of Business.
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Ques :23
The Adjustment Entry is passed to eliminate the inter company owing is
Debit Amalgamation Adjustment and credit Debtors a/c
Debit Sundry Debtors a/c credit sundry creditors a/c
Debit sundry creditors credit sundry Debtors a/c
Debit sundry debtors account, credit statutory Reserve a/c
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Ques :24
The buyback
of equity shares in any financial year cannot its total paidup
equity capital in
that financial year.
15%
20%
25%
None of these
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....1)
15%
20%
25%
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Ques :25
Accounting Standard 25 relates
Interim financial Reporting
Intangible Assets
Valuation of Goodwill
Valuation of Inventory
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Ques :26
Accounting standard 4
relates to
Lease
Accounting of fixed Assets

Valuation of shares
Contingencies and Events occuring after the balance sheet date.
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Ques :27
The prime function of accounting is to
Record economic data
provide the informational basis for action
Classify and record business transaction.
Attain noneconomic
goals.
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Ques :28
In the final accounts of a joint stock company, the item 'Deferred Tax' apprears on the
Statement of Profit and Loss
Profit and Loss Appropriation Statement
Cash Flow Statement
None of these
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Ques :29
Conditions to be fulfilled for the appointment of a managing or whole time director or a manager without the
approval of the central Government have been prescribed by the Indian Companies Act in its
Schedule Part I
Schedule VI, Part I
Schedule VIII, Part I
Schedule XIV
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....... VIII, ... I
....... XIV

Ques :30
Accounting Standard 2 is related
Cash flow Statement
Depreciation Accounting
Valuation of Inventories
Accounting for Fixed Assets.
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Ques :31
AS 14
is related to
Accounting for Amalgamation
Accounting for Investments
Accounting for Govt. Grants
Borrowing costs
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Ques :32
AS 12
is related to
Employee benefits
Accounting for Govt. Grants.
Borrowing Cost
None of these
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Ques :33
Meaning of Compound Entry is
Different Transactions of different dates are entered as a single entry
Different Transactions of same date are entered as a single entry
Different Transactions of different dates are entered as a single entry and Different Transactions of same date are
entered as a single entry
None of these
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Ques :34
Green/Environmental Balance sheet shows
Environmental Assets
Environmental Liabilities
Environmental Capital
All of these
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Ques :35
The National Environmental Protection Act was passed in India in which year.
1974
1981
1986
1995
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1974
1981
1986
1995
Ques :36
The balance of Capital Reduction a/c is generally transferred to
General Reserve Account
Capital Reserve Account
Profit Loss Statement
Security Premium Account
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Ques :37
Which of the following statement is true
Post acquisition Profit of subsidiary company is always capital profit.
Every holding company is not required to prepare consolidated balance sheet and Profit Loss a/c under

company Act
Holding company means the company which holds the entire share of another company.
A company is subsidiary company of a holding company when the latter company controls the composition of
BOD of former company.
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Ques :38
Balance of Debenture sinking Fund A/C is transferred to
General Reserve
Capital Reserve
Dividend Equalisation Reserve
None of these
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Ques :39
The time interval between date of preparing balance sheet of holding company and subsidiary company
Upto 1 year
Not more than 6 Months
More than 6 months
More than 1 year
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6 ... .. .....
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Ques :40
When the amount of Investment in subsidiary company is more than Nominal Value of share capital acquired
by holding company difference is
Goodwill
Capital Reserve
Capital Income
Revenue Profit
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Ques :41
The Basic concept related to Balance Sheet are
Cost Concept (Purchase Price)
Business Entity Concept
Accounting Period Concept
Both Cost Concept (Purchase Price) and Business Entity Concept
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Ques :42
The Basic concept related to profit loss account
Realization Concept
Matching Concept
Cost Concept
Both Realization Concept and Matching Concept
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Ques :43
Accounting does not record nonfinacial
transactions because of
Entity Concept
Accrual Concept
Cost Concept
Money Measurement Concept
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Ques :44
Capital is shown under Liabilities because of the
Conservative concept
Accrual Concept
Entity Concept
All of these

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Ques :45
Which of the follwing is not a deferred revenue Expenditure.
Preliminary expenses
Preoperative
expenses
Heavy advertising expenses to introduce a New product
Legal expenses for Breach of Contract
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Ques :46
Cash Profit is
Gross Profit Operational
Expenses
Net Profit
Non Trading Profits Depreciation and Provisions)
Gross Profits Non
trading Profits Depreciatio Provisions
Net Profits Depreciation and Provisions.
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Ques :47
The Amount of capital which can be called up only at the time of widing up of the company is called
Authorized capital
Issued capital
Called up capital
Reserve capital
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Ques :48

Minority Interest Consists of
Face value of shares held by outsiders
Proportionate share of capital Profit
Proportionate share of Revenue Profit
All of these
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Ques :49
The Creditors of H Ltd include Rs. 6000 for the purchases from S Ltd. The Adjustment Entry made during the
proportion of consolidated Balance Sheet will be
Reduce Debtor by 6000.
Reduce Creditor by 6000.
Increase Debtors by 6000
Both Reduce Debtor by 6000 and Reduce Creditor by 6000
H .... .. ........ ... 6000 ..... S .... .. ..... .. ...... ... . ...... ...... ..... ... ...... .......
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........ .. 6000 .. ..... ... ........ .. 6000 .. ..... .....
Ques :50
The existing 1000 shares of RS 100 each are altered to 10,000 shares of 10 each. This is known as
Consolidation
Sub division
Coversion into stock
Surrender
....... 100 ..... .... 1000 ..... .. 10 .. .... 10,000 ..... ... ........... ..... ... ... ... .... ..
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Ques :51
What is the effect of Increase in fixed cost in Break Even Point Analysis
Reduce Profit Volume Ratio
Increase in Break even Point
Increase Margin of Safety
Reduces the Contribution
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Ques :52
The Breakeven
Point in units is calculated by
Fixed cost/Profit Volume Ratio
Fixed Cost/ Contribution per Unit
Variable Cost/ Contribution per Unit
Sales/ Contribution per Unit
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Ques :53
The basic difference between Marginal costing and absorption costing is the treatment of
Direct Material
Variable Cost
Fixed Cost
Sales Cost
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Ques :54
Why cash Budget is prepared
It helps in cash Management
It helps in preparing Balace Sheet
It is legally compulsory
To calculate Profit Loss
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Ques :55
Activity based costing is method of
Costing
Allocation
Analysis

All of these
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Ques :56
In activity based costing an activity which generate cost is a
Cost Sheet
Cost driver
Cost Tools
Cost Method
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Ques :57
Cost drives for Inspection are
Number of Machine hours
Number of Inspectors
Number of Inspections
Number of Methods
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Ques :58
Ram Ltd used 4538 Kg of material at a standard cost Rs. 2.50 per Kg. The material usages variance was 280
(favourable). The Standard usage of Material for the period is
4700 Kg
4650 Kg
4600 Kg
4588 Kg
... .... .. 4538 Kg ...... .. ..... ..... ..... ..... .. 2.50 ..... ..... .. ...... ..... ...... 280
(......) .. ...... .. ..... ..... .... ...
4700 .....
4650.....
4600 .....
4588 .....

Ques :59
During a period 17500 labour hours were worked at a standard cost of Rs. 6.50 per hour. If labour efficiency
variance is 7800 (favourable). The standard Labour hours are
20,000 hours
18700 hours
19200 hours
18500 hours
..... .. ..... 17500 . .... ..... ..... ... ..... ..... .. 6.50 ... ..... ...., . ..... ...... ......
7800 (......) .. .. ..... . .... .... ...
20,000 .....
18700 .....
19200 .....
18500 .....
Ques :60
The main object of cost accounting is
To minimise the waste
Help in Inventory Valuation
To control and to reduce the cost
Help in fixation of price
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Ques :61
Conversion cost is equal to
Material cost and Direct Wages
Material cost and Indirect Wages
Direct wages and factory overhead
Material cost and factory overhead
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Ques :62
If cost of 1000 units is Rs. 1000 and 1500 units is Rs. 1500, then Fixed cost is
2000
1000
500
Zero
.... 1000 ....... .. .... 1000 ... ... 1500 ....... .. .... 1500 ... .. .. ..... .... ....

2000
1000
500
.....
Ques :63
The most suitable cost system where the Product is different by type of Material and work performance
Job Costing
Operating Costing
Process Costing
None of these
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Ques :64
A Budget that gives a summary of all the functional Budgets and projected profit Loss A/c is known as
Capital Budget
Flexible Budget
Master Budget
None of these
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Ques :65
When preparing a Production Budget, the quantity to be produced is equal to
Sales Opening Stock Closing Stock
Sales Opening
Stock Closing Stock
Sales Opening
Stock Closing
Stock
Sales Opening Stock Closing
Stock
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Ques :66
X requires 2400 Actual labour hours to complete works, 20% is Idle time, wages Rate is Rs. 10 per hour.
Calculate Labour cost.
Rs. 19200
Rs. 24000

Rs. 28800
Rs. 30000
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.... . .. 10 ..... ..... .... .. .. . .... .... ...
19200 ..
24000 ..
28800 ..
30000 ..
Ques :67
Which of the following is excluded from Cash Budget
Depreciation on Fixed Assets
Office Salaries
Commission Paid to Agent
Capital Cost of New Assets
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Ques :68
Selling Price of X Product is Rs. 20 per unit, fixed cost Rs. 60,000. Contribution to sales ratio is 40%.
Calculate Break even Point in Units
7000 Units
7400 Units
7500 Units
8000 Units
.... ...... .. ...... ..... 20 ..... ..... .... .. ...... .... 60,000 ..... .. ...... ...... ...... ..
40% .. .......... ....... ....... ... ....
7000 .......
7400 .......
7500 .......
8000 .......
Ques :69
If selling price of product is Rs. 9 per unit, variable cost Rs. 6 per unit, Fixed cost Rs. 54000 per year, when
Actual sales is Rs. 1,80,000. Calculate Margin of safety in units
2000 units
4000 units
6000 units
8000 Units
.. ...... .. ...... ..... 9 ..... ..... ...., ............ .... 6 ... ..... .... ..... .... 54000 .....
........., .... ......... ...... 1,80,000 ..... .. .. ...... .... ....... ... .... ...
2000 .......

4000 .......
6000 .......
8000 .......
Ques :70
Contribution Ratio is Fixed Cost Rs 75000 per month. Calculate Sales per month to get Rs. 15000 as
profit per month
Rs. 2,00,000
Rs. 3,00,000
Rs. 2,76,000
Rs. 2,50,000
...... ...... 30% ...... .... 75000 .. ..... ... ..| 15000 ..... ........ ... ..... .... ........
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2,00,000 ...
3,00,000 ...
2,76,000 ...
2,50,000 ...
Ques :71
If sales is Rs. 50,00,000, profit volume Ratio is 50% and Margin of safety is 40%. Calculate Profit.
Rs. 25,00,000
Rs. 20,00,000
Rs.10,00,000
None of these
.... ...... ... 50,00,000 .....
... ...... 50% ... ...... .... 40% .. .. ... .... ...
25,00,000 ...
20,00,000 ...
10,00,000 ...
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Ques :72
An increase in selling price will effect
Increase in Breakevenpoint
Decrease in Breakevenpoint
Does not effect Break even Point
None of these
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Ques :73
If fixed cost decreases while variable cost is remained unchanged new Break Even Point in relation to old
Break even point will be

Lower
Higher
No change
None of these
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Ques :74
Which of the following is an irrelevant cost
Sunk cost
Opportunity cost
Replacement cost
All of these
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Ques :75
When margin of safety is 28% Profit Volume Ratio is 60% Profit will be
80%
33.33%
66.67%
16.8%
.... ...... .... 28% ... .....
... ...... 60% .. .. ... ....
80%
33.33%
66.67%
16.8%
Ques :76
An export order is generally accepted at
Below Marginal cost
Below Fixed cost
Below total cost but above marginal cost
Below total cost but above fixed cost
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Ques :77
A company has an idle plant capacity. It gets a bulk order which will not affect prices of company products in
the market. Such a bulk order may be accepted at a price which is more than its
Fixed cost
Variable cost
Variable cost plus any opportunity cost of idle capacity
Total cost
.. ...... .. ... ......... ....... ..... .. ... .. ... .... ...... .. .. ... ...... .. ...... .. .....
... ..... .. ........ ..... ..... ... ... .... .. ...... ... .. .... .. ..... ..... .. ....... ..... ..
.... ..
..... .... ..
..... .... .... ..
..... .... .... . ... .... ..... ... ... .... ....
... ....
Ques :78
Basic standard is established for
Short Period
Long Period
Short and long period both
Indefinite Period
.... ... ..... ........ ..... .... ..
....... .. ....
.... ... .. ....
....... ... .... ... .. ....
........ ..... .. ....
Ques :79
The logical development of Budgetary control is
Marginal Costing
Standard Costing
Differential Costing
Absorption Costing
...... ......... .. ........ ...... ..
....... .... .... ..
.... .... .... ..
........... .... .... ..
...... .... .... ..
Ques :80
A system where manufacturer ascertain the cost after incurring expenses is known as
Standard costing
Marginal costing
Operating costing
Historical costing

.. ... ...... ..... ........ ....... .... .... .. ...... .... .... .... .. ... .... ...... ..
.... .... .... ..
....... .... .... ..`
....... .... .... ..
......... .... .... ..
Ques :81
The difference between standard output and Actual output Multiplied by Standard Variable overhead rate is
equal to
Variable overhead cost Variance
Variable overhead efficiency Variance
Variable overhead Budget Variance
Variable overhead Volume Variance
.... ..... ...... ... ......... ...... .. ..... .. ..... ............ ..... .. .. .. .... .. ..... ...
.. .. ..... ....
..... .... ....... .... ......
..... .... ....... ... ...... ......
..... .... ....... ... ......
..... .... ....... .... ......
Ques :82
The Difference between Actual Fixed overhead and Budgeted Fixed overhead is known as
Fixed overhead cost Variance
Fixed overhead Expenditure Variance
Fixed overhead Volume Variance
Fixed overhead capacity Variance
......... ...... .. ... ... ... ......... ...... .. .. .... .. ... .... ..
...... ....... .... ......
...... ....... ... ......
...... ....... .... ......
...... ....... ..... ......
Ques :83
In contract costing Payment of cash to the contractor is made on the basis of
Uncertified work
Certified work
Works in progress
Retension Money
.... .... ...... ... ....... .. ... .. ...... .... .... .. ..... .... ..
.... .. ... ..
... .. ... ..
.. ...... ... ..
..... .....

Ques :84
Retension Money is equal to
Work certified less work uncertified
Contract Price Less work certified
Work certified Less payment received by contractor
Work certified plus cash Received
.... ... ..... ..... ..
... .. ... ... .. .... .. ... ... ..
.... ..... ... .. ... .. ... ... ..
... .. ... ... .. ....... .. ..... ..... ... ..
... .. ... .. ... ......
Ques :85
Cost unit for Paper Industry is
Per Rim
Per Paper
Per Kg
Per quintal
.... ...... .. ..... .... .... ....
... ...
... ....
... ......
... .......
Ques :86
Total Inventory Cost is
Carrying Cost
Ordering Cost
Carrying Cost Ordering Cost
Purchase Cost Carrying Cost Ordering Cost
... ...... .... ..
...... ... .... ... ....
.... .... ... ....
...... ... .... ... .... .... .... ... ....
.. .... ...... ... .... ... .... .... .... ... ....
Ques :87
When work certified is less than 25% of contract Price, Profit to be transderred to Profit Loss Account
Nil
100% of Notional Profit
1/3 of Notional profit
2/3 of Notional Profit
.... ........ ..... .... ..... .. 25% .. .. .. .. ..., .....
... .... ... ............. ....
.....


........ ... .. 100%
........ ... .. 1/3 ...
........ ... .. 2/3 ...
Ques :88
Which Accounting Standard relates with the accounting for costruction contract
Accounting Standard 5
Accounting Standard 6
Accounting Standard 7
Accounting Standard 8
......... ..... .. ....... .... ....... ..... .. ....... ..
.... .... 5
.... .... 6
.... .... 7
.... .... 8
Ques :89
The technique of Profit Planning is
Marginal Costing
Standard Costing
Budgetary Control
None of these
... ....... .. ..... ..
....... .... .... ..
.... .... .... ..
...... ......
.... .. ... .....
Ques :90
Variable Cost is
Direct Cost
Direct Cost Variable overheads
Absorption Cost
None of these
............ .... ..
...... ....
...... .... ..... .... .......
...... ....
.... .. ... .....
Ques :91
Contract Price Rs. 3,00,000 Estimated Profit Rs. 60,000 Retention money 20% of certified work, works
certified 60% of contract Price. Calculate amount of Profit transfer to Profit Loss a/c
Rs. 60,000
Rs. 28,800

Rs. 32,000
Rs. 48,000
.... ..... 3,00,000 .. ......... ... 60,000 ..... ..... ........ ..... .. 20% ........ ....., ....
..... .. 60% .....
... .... ... ............. .... ..... ... .. ..... .... ...
60,000 ...
28,800 ...
32,000 ...
48,000 ...
Ques :92
When two or more than two products are produced which have equal value known as
Joint Product
ByProduct
CoProduct
Scrap
.. .. .... .. .. ..... .... ....... .. ........ .. ....... .... .. .. ... ...... .. ... .... ..
....... ......
.. ...... (........)
........
.....
Ques :93
Workin
progress
in contract costing is
Value of work certified cost of work uncertified
Cost of work certified Cost of work uncertified
Value of work certified Cost of work uncertified Profit
kept as reserve
None of these
.... .... ......... ... .... ..... ..
... .. ... .. ..... .... .. ... ... ....
... .. ... ... .... .... .. ... ... ....
... .. ... .. ..... .... .. ... ... .... ....
.. ... ... ... ... ...
.... .. ... .....
Ques :94
Which of the following does not use Process costing
Oil Refinery
Chemical works
Sugar works
Aircraft manufacturing
...... ... .. ... ........ ....... .. ..... ..... ....
... ....
..... ......
.... ......
....... .... .

Ques :95
Input 12000 Kg, Normal loss 10% of input. If output is 10920 Kg. What is abnormal Loss/Gain
Abnormal Gain 120 Kg
Abnormal Loss 120 Kg
Abnormal Gain 1080 Kg
Abnormal Loss 1080 Kg
...... ..... 12000 Kg, ..... ... ...... .. 10% ....... ..... .... ..... ...... 10920 ........ .. ..
........ ...../ ... .... ...
........ ... 120 ..... ...
........ .... 120 ..... ...
........ ... 1080 ..... ...
........ .... 1080 ..... ...
Ques :96
Wastage of Raw material during Process is 20% of Input. What quantity of Raw material is required per Kg
of output
0.8 Kg
1.2 Kg
1.25 Kg
1.33 Kg
.... ... ..... ... ...... .. 20% ....... ..... .. 1 ..... .... ..... ... ...... .... .... ...... ......
.. ........ ....
0.8 ........
1.2 ........
1.25 ........
1.33 ........
Ques :97
Cost unit for Water supply Industry is
Per 100 gallons
Per 1000 gallons
Per 10000 gallons
Per gallon
.. ..... ...... .. .... .... .... ....
... 100 .....
... 1000 .....
... 10000 .....
... .....
Ques :98
The Expenses which are not related to operations process but related to time (period) are known as
Variable Expenses
Semi Variable Expenses
Semi Fixed Expenses

Fixed Expenses
... ... .... .. ........ .. ......... ..... .... ...... ... (.....) .. ......... .... .. ...... ... .... ..
..... .... ....
.. ..... .... ....
.. ...... ....
...... ....
Ques :99
The cost unit in operating costing is a
Simple Cost unit
Composite Cost unit
Simple or Composite Cost unit
None of these
........ .... ......... ... .... .... .... ..
...... .... ....
....... .... ....
...... .. ....... .... ....
.... .. ... .....
Ques :100
When the detail related with cost of production presented in the form of Account is known as
Trading Profit Loss Account
Production Account
Cost sheet
Statement of cost
.. ....... .. .... ........ ...... .. .... .. ... ... ....... ..... .... .. .. ... ... .... ..
........ . .....
.. ....
....... ....
.... ..
.... .. ...... ..
Ques :101
Which activity is not the part of Financial Activity in Cash Flow Statement
Issue of Share
Buy back of share
Purchase of Buliding
Payment of dividend
.... ..... ...... .. ........ ........ ... ..... ...... ..... ..
..... .. ... ..
..... .. ...: .....
... ... .....
...... .. ......
Ques :102

Which one of the following item is a Non Cash transaction
Redemption of preference share
Redemption of Debentures
Conversion of Debentures into shares
Purchases of Asset
...... .... ... .. ... .. ... ... ...... ..
.... ...... ..... .. ....
.. .... .. ....
.. .... .. ..... ... ..... .
....... .. ..
Ques :103
Which activity is an investment activity in cash flow statement from the following
Redemption of Debentures
Dividend Paid
Interest Paid
Purchase of Plant Machinery
.... ..... ...... .. ....... ...... ... .. ..... ......... ...... ..
...... .. ....
...... .. ......
..... ......
...... ... .... ... .....
Ques :104
Cash flow statement is presented to state
Opening balance of cash or cash Equivalents.
Sources and application of Cash and Cash Equivalents
Sources and application of working capital
All of these
.... ..... ...... ..... ..
... ... ... ..... .. ....... ...
.... ... .... ....... .. ..... .... .....
... ... ..... .. ..... ... .....
.... .. ...
Ques :105
The Methods of cash flow statement described in Revised As 3
Direct Method
Indirect Method
Direct and Indirect Method
None of these
........ ....... .... 3 .... ..... ...... ....... .... .. ...... ..
...... ......
....... ......


...... . ....... ......
.... .. ... .....
Ques :106
Isssue of Equity shares for consideration of Purchase of land is
Cash out flow
Cash inflow
Cash Inflow Outflow both
Neither Cash Inflow nor Cash outflow
..... .. ... .... .. ....... ... .... .... .. ........ ........
.... .. .... ....
.... .. ...... .
.... .. .... ... ...... .
. .. .... .. .... .... . ... ...... .
Ques :107
Ram Ltd has a current Ratio 4.5:1 and Quick Ratio 3:1. If its inventory is Rs. 72000. Calculate Current
Liabilities
Rs. 2,16,000
Rs. 73000
Rs. 48,000
Rs. 84,000
.... ... .... .. .... ...... 4.5:1 ... ....... ...... 3:1 .. ... ...... .. ..... 72,000 .. .. .. ....
........ .... ...
2,16,000 ...
73000 ...
48,000 ...
84,000 ...
Ques :108
A company has share holder's equity of Rs. 2,00,000/Total
Assets are 60% of share holder's equity assets,
turn over Ratio 4 times, Inventory Turnover is 6 times. Calculate amount of Inventory.
Rs. 4,80,000
Rs. 8,00,000
Rs. 80,000
Rs. 6,00,000
.. ...... .. ........... .. .... ... 2,00,000/..
... .......... ........... .. .... .. 60% ..
....... ..... 4 .... ... ...... ..... 6 .... .. ...... .. ..... .... ...
4,80,000 ...
8,00,000 ...
80,000 ...
6,00,000 ...
Ques :109
Calculate opening Debtor Total
sales Rs. 3,00,000, cash sales 60% closing Debtors Rs. 25,000 and average

collection period is 2 months
Rs. 25,000
Rs. 20,000
Rs. 15,000
Rs. 40,000
........ ...... .... ... ..
... ... ...... ... 3,00.000, ... ...... 60% ...... ...... 25,000 ...
... ..... ..... 2 ... ..
25,000 ...
20,000 ...
15,000 ...
40,000 ...
Ques :110
Capital Rs. 15,00,000 Capital turn over 4 times and profit on sales is 10%. Calculate Return on Capital
20%
30%
40%
25%
..... 15,00,000, ..... ..... ...... 4 .... ... ...... .. ... 10% .. ..... .. ... .... ...
20%
30%
40%
25%
Ques :111
Financial Structure means
Equity share capital Preference Share Capital Long term Loan
Equity share capital Preference Share Capital Long term Loan Retained Earnings
Equity share Capital Preference share capital Long term Loan Retained Earnings Current liabilities
None of these
...... ...... .. .... ..
.... ... ..... .... ...... ... ..... .... ...... ..
.... ... ..... .... ...... ... ..... .... ...... .. ........ .. ...
.... ... ..... .... ...... ... ..... .... ...... .. ........ .. ... .... .......
.... .. ... .....
Ques :112
Average stock 73000, Debtors 45000, Stock turn over 6 times, Gross profit Margin 20% of sales and credit
sales 40% of Total sales. Calculate Average collection period.
146 days
75 days
73 days
90 days
... ...... 73,000, ...... 45,000 ...... ..... ...... 6 ...., ... ... ...... ...... .. 20% ...
... ...... .. 40% .... ...... .. ... ..... ..... .... ...
146 ...


75 ...
73 ...
90 ...
Ques :113
The monthly cash requirements of a company are Rs. 60000; fixed cost per transaction Rs. 10 and interest
rate on marketable securities is p.a. The optimum cash balance will be
Rs. 15,000
Rs. 20,000
Rs. 25,000
Rs. 30,000
.... .. ...... .. ...... .... .......... 60,000 .., ..... ..... ...... ...... 10 ... ... ......
..... ............. .. .... .. 6 ....... ........ .., .. ........ .... ... ....
15,000 ...
20,000 ...
25,000 ...
30,000 ...
Ques :114
Difference in capital Gearing Ratio and debts to Equity ratio is due to
Preference share capital
Equity share capital
Prefernce share capital Equity share capital
None of these
..... ........ ...... ... .. .... ...... ... .... .. .... ..
.... ...... ... .....
.... ... .....
.... ...... ... ..... .... ... .....
.... .. ... .....
Ques :115
Acid Test Ratio means
Liquidity
Profitability
Efficiency
Long term Solvency
.... ....... ...... ..... ..
.....
.........
......
.... ...... .... .....
Ques :116
Capital turn over Ratio is 12 and net profit Ratio is 30%. The overall profitiability is
40%

3.6%
2.5%
18%
.... ..... ..... ...... 12 ... .... ... ...... 30% .. .... ......... ...... .... ...
40%
3.6%
2.5%
18%
Ques :117
On which factor Dupoint
control Chart depends
Profit
Investment
Profit and Investment
Sales
.. ..... ........ ........ .... .... .. ....... ..
...
........
... ... ........
.....
Ques :118
Net Profit for year ending 3132016
is Rs. 3,00,000. This figure of the N.P. Has been arrived after taking into
following items:Depreciation
on Fixed Assets Rs. 65,000, Preliminary Expenses written off Rs. 7,000 and
Profit on sale of long term Investments Rs. 5,000. Fund from operation will be
Rs. 3,77,000
Rs. 4,33,000
Rs. 4,38,000
Rs. 3,67,000
31..... 2016 .. ...... .... .. .... ... 3,00,000 ... .. .... ... ... ...... .... ...... .. :..
.... ..........
.. ... 65000, ......... .. ......... 7000 ... ... ............ .......... .. ..... .. ... 5000 ...
...... ... ....
3,77,000 ...
4,33,000 ...
4,38,000 ...
3,67,000 ...
Ques :119
The Source of fund is
Receipt of Bonus shares from subsidiary company
Receipt of licence to Import goods
Receipt of Dividend on Investment in shares of subsidiary company
None of these
... .. ...... ..
..... ..... .. .... ..... ... ......
... .... .... .. .... ........ ... ......


..... ..... .. ..... ... ........ .. ...... ... ......
.... .. ... .....
Ques :120
There is a flow in funds when there is a transaction between
Non current a/c with current a/c
Current a/c with current a/c
Non current account with Non current a/c
All of these
... ..... .... .. ..... ...... .. .... ..... .... ..
... .... .... .. .... .... ..
.... .... .. .... .... ..
... .... .... .. ... .... .... ..
.... .. ...
Ques :121
The application of fund is
Acceptance of supplier's Billls of exchange
Deposit of cash into bank
Endorsement of B/R in favour of creditors.
None of these
... .. ..... ..
..... ... .. ....... ..... .. ........ ....
.... ... ... ... ....
........ .. ... ... ..... ....... .. ..... ....
.... .. ... .....
Ques :122
Received a Dividend on investment Rs. 50,000 out of which Rs. 30,000 is related to preacquisition profit.
Sources of fund will be
Rs. 30,000
Rs. 50,000
Rs. 20,000
None of these
......... .. 50,000 ..... .. ...... ...... ..... ... ... .. 30,000 ..... ....... .. ..... ... .. ......... ..
... .. ...... ....
30,000 ...
50,000 ...
20,000 ...
.... .. ... .....
Ques :123
In current year, current Liabilities has decreased in comparison to Last year then working capital will
Decrease
Increase

Constant
None of these
.. .... .. ..... ... .... .... ... .... .......... ... ... .... .. .. .... ........ ..... ...
... ....
..... ....
..... ....
.... .. ... .....
Ques :124
In which year, The Institute of Chartered Accountants of India issued Revised Accounting Standard 3
June 1981
March 1997
June 1998
March 2000
............ .. ........ ............ .. ....... .. .... .... 3 .. ...... .. ........ .....
... 1981
... 1997
... 1998
... 2000
Ques :125
20%
25%
60%
40%
20%
25%
60%
40%
Ques :126
Cash budget is prepared by
Receipts and Payment Method
Adjusted Profit and Loss Method
Projected Balance Sheet method

All of these
.... ... ..... .... ..
...... ... ...... .... ......
........ ... .... .... ......
....... ...... .... ......
.... .. ...
Ques :127
The method of cost control under which the control of centre point will be responsible person for cost, not cost
Social Accounting
Responsibility Accounting
Cost Accounting
Financial Accounting
.... ........ .. .. ...... ...... ........ .. ..... ...... .... . .... .... .. .... ....... ..... .... ..

....... .......
............ .......
.... .......
........ .......
Ques :128
The Variance of Standard Costing remains always Adverse in Business called as
Material Yield Variance
Idle Time Variance
Labour Yield Variance
None of these
..... .... .. ... ...... .. .... ..... ... ........ ... .... ..
..... ....... ......
... .... ... ......
.. ....... ......
.... .. ... .....
Ques :129
Debt Service Ratio is
EBIT/Interest Payable
EAT/ Interest Payable
Net profit/ Interest Payable
Gross Profit/ Interest Payable
.. .... ...... ..
.. . ..... .. ... .../ ... .....
.. .. ... .../ ... .....
... .../ ... .....
... .../ ... .....

Ques :130
Trading on Thick Equity means
Equity and Debts are equal
Equity is Less than Debts
Equity is more than Debts
None of these
.... .... .. ..... .. ...
.... ... .. ..... ..
.... .. .. .. ..
.... .. .. ..... ..
.... .. ... .....
Ques :131
Earnings per share of X Ltd. Are Rs. 9 and the market price of a share of face value of Rs. 100 is Rs. 150.
Cost of Equity share capital will be

15%

None of these
.... .... .. ..... ... .. 9 ... .., ... ..... ... ..... ..... 150 .. .. ..... .. ..... 100 .. .. .... ...
..... .. .... ....

15%

.... .. ... .....
Ques :132
The components of Gross Period of operating cycle is
Raw Material Storage period
Finished Stock Storage Period
Conversion Period (Semi finished goods)
All of these
........ ... .. ... ..... .. .... ..
.... ..... ... ....... .....
..... ... ... ....... .....
..... . ..... (.. ..... . ...)
.... .. ...
Ques :133
The cost of retained earnings will be :Dividend
per share Rs. Personal Income Tax Personal Capital
Gain tax rate 10%. Market Price per share Rs. 100
10%
25%
35%
7.5%
........... ....... .. .... .... :......
..... ... 9 ..., ....... .. .. .. 25% ....... ..... ...

.. .. ..... ..... ..... ... 100 ...
10%
25%
35%
7.5%
Ques :134
"The Cost of Capital is the minimum required rate of earnings or the cut off rate for capital expenditure."
Definition given by
Milton H. Spencer
M J GORDON
Soloman Ezra
Hunt, William and Donaldson
..... .... ........ ....... .. ....... .. .... ..... .... .. ........ .. ..
....... .. ........
... ... ... .
...... ....
..., ........ ... .........
Ques :135
Factor does not Influence the size of working capital
Business fluctuations
Dividend Policy
Availability of Labour
Availability of Raw Material
... ... .. ........ ..... .. .... .. ........ ..... ....
...... .. .......
...... ....
.. ... ........
.... ..... ... ........
Ques :136
Calculate working capital when operating period is 44 days, operating cost is Rs. 10,50,000, minimum cash
required Rs. 50,000, No. Of days 365 in a year
1,76,575
1,56,757
2,00,000
1,76,755
........ ..... .... ... ..... ........ ..... 44 ...., ........ .... ... 10,50,000 ....... ... ...
50,000, .... ... .... 365 ..
1,76,575
1,56,757
2,00,000
1,76,755
Ques :137
Calculate working capital when current Assets Rs. 40,00,000 Current Liabilities Rs. 13,00,000 Provision for
contingency is 10% of Total working Capital

Rs. 29,70,000
Rs. 30,00,000
Rs. 44,00,000
Rs. 14,30,000
........ ..... .... ... .. .... ....... 40 ... ... ... .... ........ 13 ... ... .......... .. ....
..... ........... ..... .. 10% .. ..
29,70,000 .....
30,00,000 .....
44,00,000 .....
14,30,000 .....
Ques :138
X Ltd earns Rs 5 per share is capitalised at the rate of 10% and has a rate of Return on Investment of 18%.
According to Walter's formula. What should be price for share at 25%. Dividend Pay out Ratio
Rs. 25
Rs. 80
Rs. 125
Rs. 90
.... .... .. 5 ..... ..... ... ...... .... .. 10% .. .. .. ........ .. ......... .. ...... .. 18% ..
..... .... ...... 25% ...... ...... .. ..... ... ..... .... ....
25 ...
80 ...
125 ...
90 ...
Ques :139
Vivek Ltd has 10% actual capitalisation rate, a dividend pay out of 50% and declares a dividend of Rs. 2 per
share. The normal capitalisation rate in the Industry is 12 Calculate value of equity share by Gardon
Model.
58.28
85.28
28.58
None of these
...... .... .. ......... ..... ... .. 10% ...... ...... 50% ..... ... 2 ... ...... ...... .... ..
.. ...... ... ....... ..... ... .. 12% .. ...... ........ .. ..... .... ... .... ... .. ..... ....
...
58.28
85.28
28.58
.... .. ... .....
Ques :140
Current Market Price of Rs. 10 each Equity share is Rs. 15, Dividend per share is Rs. 1.5. if Growth rate is
per year. Calculate cost of Equity share capital.
10%
22%
15%
17%

10 ..... .. ...... ..... .. .... ... .. .... ..... ..... 15 ... .. ..... ... ...... 1.5 .. .. .... ..... ....
...... ...... .. .. .. .... ... ..... .. .... .... ...
10%
22%
15%
17%
Ques :141
The Cost under which to accept the specific Investing project, forgo the alternative options, called as
Explicit Cost
Future Cost
Historical Cost
Opportunity Cost
..... ......... ......... ......... .. ....... .... .. .... .... .. ........ ......... .. .... ...... ..

...... ....
.... ....
......... ....
.... ....
Ques :142
Price Earning Ratio is useful for
Short term creditors
Long term creditors
Share holders
Both Short term and Long term creditors
..... ..... ...... ...... ..
.......... ...... .. ....
.... ...... ...... .. ....
.......... .. ....
.......... . .... ...... ...... ..... .. ....
Ques :143
Stock Turn over Ratio is
Sales/ Closing Stock
Sales/ Average Stock
Cost of goods sold/ Average Stock
Cost of goods sold/ Closing Stock
...... ..... ...... ..
...../ ..... .......
...../ ... .......
.... .. ... ... ..../ ... .......
.... .. ... ... ..../ ..... .......

Ques :144
"Equity capital is cost free" Is this statement true
True
False
Partly True and Partly False
None of these
.... ..... .... ..... .. .... .. ... .... ..
....
.....
.. .... .... .. .....
.... .. ... .....
Ques :145
Overall Solvency Ratio is


None of these
.... .... ..... ...... ..


.... .. ... .....
Ques :146
Management Accounting involves
Preparation of Financial Statements
Analysis and interpretation of data
Recording of transactions
None of these
......... ....... ... ........ ..
...... ...... .... .. .... .
..... .. ......... . ... ..
........ .. ........
.... .. ... .....
Ques :147
When evaluating capital investment proposals. Time value of Money is used in the Technique.
Internal Rate of Return
Average Rate of Return
Pay back period
None of these
..... ......... ......... ... ..... .. ... ..... .. ..... .... ..... ..... ..
....... ...... ..


... ...... ..
...: ...... .....
.... .. ... .....
Ques :148
Profitability Index is the ratio of
Initial Investment to present value of cash inflow
Present value of cash inflow to Initial Investment
Average Income to Initial Investment
None of these
......... ....... ...... ..
....... ........ .. .... .... ... .. .. ... ..... ..
.... .... .... .. .... ... ..... .. ....... ........ ..
... .. .. ....... ........ ..
.... .. ... .....
Ques :149
Cash Inflow After Tax means
Cash Revenue Cash
Expenses
Total Revenue Total
Expenses
Cash Inflow before Tax Expenses
Operating Profit Depreciation Tax
.. ...... .... ..... .. .... ..
... .. ...
....
... .. ...
....
.. .. ... .... ....... ..
..
....... ... ... ..
Ques :150
What is the basic assumption of dividend yield plus growth method of cost of capital
Constant growth of firm
Costant dividend pay out
Both Constant growth of firm and Constant dividend pay out
None of these
..... .. .... .... .... .. .... ...... ....... ... ...... ... ...... ...... .. ....... ..... .... ..
.. ... ...... .....
...... .. ...... ......
.. ... ...... ..... . ...... .. ...... ...... .....
.... .. ... .....