1. Journal is a .......


Book of final entry Book of prime entry


Set of accounts Basis for accounting


2. The process of recording a transaction in the journal is called..........


Posting Journalizing


Tallying Balancing


3. The sequence of an accounting cycle is Journalizing, Balancing, Posting Position statement, Trial balance Income statement.

6 4


4 6


4. Recovered 60 paisa in a rupee from a person who owed Rs. 1000 is shown as ........


Discount allowed account be debited with Rs. 400


Bad debt recovered account be debited with Rs. 600


Bad debt account be credited with Rs. 400


Bad debt account be debited with Rs. 400


5. Goodwill is ......

Real account Nominal account


Personal account Nominal and personal account


6. Subscription received in advance is ...........


An income Liability


An asset Expenditure


7. In the absence of an agreement, interest on partner's loan shall be paid at the rate of...

6 per cent 8 per cent


10 per cent 12 per cent


8. The documents supporting various transactions are popularly called.....

Journal Voucher


Stamps Ledger


BKU-14142-A 3 [Turn over
9. Which one of the following is not a limitation of accounting

Accounting does not record all events of business


Accounting does not reflect current values


Accounting does not disclose correct value of various items


Accounting does provide the required information and help in decision-making


10. Assets are equal to liabilities plus capital is the concept of ........


Money measurement concept


Business entity concept


Historical record concept


Dual aspect concept


11. "Every receiver is also a giver and every giver also a receiver." It is related to the concept of

Single entity concept Matching concept


Going concern concept Dual aspect concept


12. Discount on issue of shares is ....... asset


Fictitious Fixed


Tangible Floating


13. Which one of the following is shown in Balance Sheet

All personal accounts only


All real and personal accounts only


All real accounts only


All nominal accounts only


14. A brief explanation of the entry is called ...

Description Narration


Summary Transaction


15. Which one of the following is not capital profit

Profit on sale of fixed assets


Profit on reissue of forfeited shares


Profit on purchase and sale of stock


Premium on issue of shares


BKU-14142-A 4
16. Which one of the following is not related to the compound journal entry

Debiting one account and crediting two or more accounts


Debiting two or more accounts and crediting one account


Debiting several accounts and crediting several accounts


Debiting one account and crediting one account


17. Opening entries are entered in ....

Journal proper Bills payable book


Bills receivable book Sales book


18. Which one of the following is shown in trading account

Expenses incurred towards packing the goods fit for sale


Expenses incurred towards packing the goods for delivery


Expenses incurred towards samples


Expenses incurred towards salary and wages


19. Which one of the following is not commission

Amount given to selling agent


Amount given to broker


Amount given to import-export agent


Amount given to the wholesaler for bulk purchases


20. Goods worth Rs. 500 received back have not been entered in the Returns Inward Book. It is called .....

Error of omission Error of commission


Error of compensatory Error of principle


21. Goods given as samples are debited to ....

Sales account Advertisement account


Discount account Purchase account


22. Consignment account is in the nature of a .......


Real account Nominal account


Personal account Real and personal account


23. Which one of the following account always shows debit balance

Cash account Bank account


Sales account Capital account


BKU-14142-A 5 [Turn over
24. Cash book is a .......


Ledger Journal


Book-keeping Ledger and journal


25. If the debit and credit aspects of a transaction are recorded in cash book, it is called ......

An open entry A compared entry


A contra entry A transfer entry


26. A Partnership Firm prepares Revaluation/Profit Loss Adjustment Account on

Dissolution of Partnership


Dissolution of Partnership Firm


Only on admission of a new partner to the Firm


On amalgamation of two Firms.


27. Which one of the following is recorded in journal proper

Sale of goods Purchase of goods


Rectification of entries Cash purchases of assets


28. Heavy advertising expenditure to launch a new product is ..... expenditure

Capital Revenue


Deferred revenue Capital and revenue


29. Which one of the following equation is correct

Capital assets liabilities


Capital assets liabilities


Assets Liabilities equity


Capital liabilities assets


30. Which one of the following error causes disagreement of trial balance

Total bills payable Rs. 5000 is posted to the credit of Bills Receivable account


Goods worth Rs. 100 drawn by the proprietor for personal use is omitted to be recorded in the books


Rs. 500 incurred towards transportation of plant purchased debited to transport account


Rs. 1000 paid to Ravi had been wrongly posted to Siva


31. Errors which affect one account is called......

Errors of commission Errors of principle


Errors of pooling Errors of omission


BKU-14142-A 6
32. Preparation of trial balance helps in detection of ......

Errors of principle Errors of compensating


Errors of whole omission Errors of commission


33. Which one of the following is not correct

Depreciation is non-cash expenditure


Depreciation is a source of fund


Depreciation is an accounting charge


Depreciation is an estimate of consumption of capital


34. Average collection period reflects the firm's .........


Benefit derived from credit sales


Credit policy


Collecting policy


Credit and collection policies


35. As per Garner Vs Murray decision, the loss caused by insolvency of a partner is shared by the solvent partners ......

In profit sharing ratio


In capital ratio


In the ratio in which they buy share of the insolvent partner


Equally


36. A partnership must dissolve when ......

Partner misbehaves Partner dies


Business running at loss Partner joins as partner in another firm


37. Non-trading institutions prepare ... ...... account.

Income and expenditure Trading


Manufacturing Profit and loss


38. Sale of old news papers is .....

Capital income Capital expenditure


Revenue expenditure Revenue income


39. Accounting standards are issued by ......

Recognized Professional Accounting Bodies


Share holders of companies


Board of directors


Company Law Board


40. The closing stock is not shown in trial balance. The reason is .....

Journal entry is not passed for closing stock


Payment is not made for closing stock


Because it is not yet sold


It is part of purchases which is already shown in trial balance


41. In the absense of an agreement a partner of a Firm is entitled to interest on his capital

per annum 12% per annum


15% per annum Not entitled to any interest


42. If the partnership deed is silent, profits and losses are ......

Shared in the proportion of the capitals of the partners


Shared in the proportion of the drawings of the partners


Shared equally


Profits are not at all shared by the partners


43. The company issued 1000 shares of Rs. 10 at a premium of Rs. 3 per share. The amount payable on allotment including premium was Rs. 5. Amount credited to capital account at the time of allotment of 1000 shares would be ......

Rs. 10000 Rs. 5000


Rs. 3000 Rs. 2000


44. The distinction between capital and revenue expenditure is based upon ......

Period of benefit derived Nature of expenditure


Heads of expenditure Amount of expenditure


45. Which one of the following is known as document of title to goods

Bill of entry Letter of credit


Invoice issued by seller Bill of lading


BKU-14142-A 8
46. Trading account shows .....

All indirect expenses


Expenses production and non- production


Expenses of production only


Expenses other than production


47. Goodwill is treated as ....... asset


Tangible Intangible


Fictitious Current


48. Which one of the following are current assets- Cash, Goodwill, Building Stock,

Prepaid expense, Work-in-progress, Motor vehicle, Preliminary expenses


5 8


3 7


49. Wages paid towards installation of machinery is shown in .....

Profit and Loss account Trading account


Balance sheet Profit and Loss appropriation account


50. Which one of the following is not an operating expense

Factory overheads Interest expenses


Postage expenses Administrative expenses


51. Marshalling refers to presentation of .......


Assets and liabilities in proper order in Balance Sheet


Expenses and incomes in Profit and Loss account


Expenses and incomes in Trading account


Expenses and incomes Trial Balance


52. Which one of the following assets is excluded in calculating quick ratio

Debtors Stock-in-trade


Bill receivable Debtors and stock-in-trade


53. Test of liquidity is reflecting in ......... ratio.


Current Debt-equity


Fund Audit


54. Which one of the methods does not show the time value of money

Profitability index


Net Present Value


Net present value Accounting rate of return


Internal rate of return


55. Auditing begins when .....

Management ends Book-keeping ends


Accounting ends Business ends


56. An auditor is a watch-dog and not a bloodhound. This was stated in the case of .....

London Oil Storage Company


Kingston Cotton Mills Ltd


Cox Cotton Mills Ltd


Blue Cotton Mills Ltd


57. Statutory duties of an auditor are determined by ......

Memorandum of Association


Articles of Association


The Companies Act, 1956


Table-A


58. Management audit means ......

Audit of management accounting


Audit of financial accounting


Audit on behalf of a management


Audit of systematic appraisal of management's observations and procedures on the state of affairs.


59. Conversion of debenture into equity share will result in .....

Decrease in net worth Increase in net worth


Increase in current liability Increase in total capitalization


60. The doctrine of Ultra Vires covers the acts which are beyond .........


The powers of the directors


The powers of the chief executive of company


The powers of the debenture holders and creditors


The objectives stated in Memorandum of Association


BKU-14142-A 10
61. Even if all the shareholders died in an accident, the company will ......

Not continue Continue


Be dissolved Be wind up


62. Bad debts, written off in the past year but received during the current accounting year, are credited to ......

Cash account Reserve account


Profit and Loss account Debtors account


63. The accounting principle which anticipates no profit but provides for all probable losses is re­ferred to as the ..... principle.

Consistency Timeliness


Prudence Materiality


64. The partners have to bring their personal assets to clear the losses of the firm, if any, because of...

Partners are different from partnership


Partnership is different from partners


Partnerships and partners are not different


Partnership and partners are different


65. By behaviour and expression, a person giving an impression that he is a partner. He is .....

Nominal partner Sleeping partner


Partner by estoppels Minor partner


66. Which one of the following is a statutory organisation

RBI NTPC


HMT BHEL


67. Which one of the following enactments govern the business combination like mergers and takeover

MRTP Act, 1969


Indian Contract Act, 1872


Indian Partnership Act, 1932


SEBI Act, 1992


68. When at least 51 per cent of shares are in the hands of the Government, it is called .....

Public limited company Public corporation


Govt. company Departmental organization


69. Whether "S. V. Electronics Company" is ......

A private company A public company


A statutory company Not a company at all


70. Sick public enterprises are referred to the ........


Bureau of public enterprises


Committee on public undertakings


Board for Industrial and Financial Reconstruction


Ministry of industries


71. Which one of the following is not included under organization function

Listing of activities Grouping of activities


Defining relationship Appraising the performance


72. Which one of the following is not an essential feature of coordination

Coordination is relevant for group efforts


Coordination is a continuous and dynamic process


Coordination emphasizes unity of efforts


Coordination leads to the building of an institution


73. Which one of the following is not characteristic of authority

Getting things done Decision-making


Implementation Coordination


74. Under which of the following Acts, audit is not compulsory

Companies Act, 1956 Banking Companies Act, 1949


Partnership Act, 1932 Insurance Companies Act, 1938


75. An important feature of sole proprietorship is .....

Undivided risk Limited liability


Separate entity Lack of coordination


76. An economic activity that established linkages between the producers and the ultimate consumers is termed....

Business Profession


Commerce Production


77. The maximum number of partners in a partnership firm carrying on banking business is ......
(A) 10
20 50
78. A dividend in the form of securities in lieu of cash payment is called .........


Bonus share Stock dividend


Script dividend Property dividend


79. If goods are imported in India for the purpose of export to China, it is called ......

Export trade Import trade


Entrepot Trade between two countries


80. A letter of credit is provided by ........


An exporter An importer


Customer bank Indent house


81. Which one of the following deals exclusively with the import and export of goods

Foreign banks Commercial banks


Exim bank Foreign exchange banks


82. Indemnity means .....

A promise to pay A promise to compensate


A promise to reimburse A policy to pay


83. The principle of subrogation is applicable to .....

All insurance Only for marine insurance


Only for health insurance All insurance other than the life insurance


84. If Andhra Bank insures the risk of its insured-customer with LIC, it is called .......


Double insurance Special insurance


Reinsurance Voyage insurance


BKU-14142-A 13 [Turn over
85. If a ship is insured against any type of risk, it is called .......


Double insurance Hull insurance


Time policy Single insurance


86. The conversion of a mutual insurance company into a stock insurance company is called ......

Demutalization Dematerialization


Penetration Diversification


87. The terms of insurance cover and the rates of premium for a year transaction of marine dispatches
fixed by the insured is called ..... Voyage policy Declaration policy Annual policy Open cover
88. The goal of scientific management is ..... Maximization of employment Maximization of production Maximization of social welfare Higher industrial efficiency

89. Business means industry, selling goods, trade aids to trade

4 2


1 4


90. In what way the management functions and management principles are related to each other

Management principles are derived from management functions


Management functions are derived from management principles


Principles make up the management functions


Both are derived from management theory


91. Which of the following is not rule

Throw of waste paper in dust bin


No- smoking sign board in the premises


Work plan made in sequence and conformity with the firm


Recruitment with 55 per cent of marks


92. Describing an organization's goals in Memorandum of Association is .....

Operational goals Official goals


Operative goals Working goals


93. Planning includes .......


Decision-making


Implementation


Deciding in advance what is to be done


Monitoring


94. A special plan formulation in accordance with the tactics adopted by the competitors is known as.....

Policy Procedure


Program Strategy


95. Which one of the following statement represents a statement of objective

Make more profits


Reduce costs by eight per cent


Reduce price to capture more market


Produce more products quantity


96. When day-to-day routine problems are looked after by the lower level management and when the management is paying attention to more important areas, it is called.......

Management by objective


Management by crisis


Management by exception


Management by results


97. Decision making is based on .......


Government directions


Rational thinking with course of action


Competitors policies


Selective alternatives


98. Controlling is a function of .....

Line managers Topmanagers


Staff managers Middle managers


99. Organization chart explains ........


The division of work


The grouping of activities


The relation between managers and subordinates


The authority of employees


100. The planning activity process goes in hierarchy of Corporate plan, Departmental plan,

Divisional plan, Sectional plan


4 4


4 2


101. Esprit de corps means ......

Strength Harmony


Team spirit Divide and rule


102. Who said that administration is thinking function and management is doing function

Sheldon Henry Fayol


Drucker Gullick


103. If a minister determines all policy himself and assigns the work to each bureaucratic is called .....

The participative style The cooperative style


The country style The authoritative style


104. Which one of the following is the first step in the process of decision-making

Identifying the problem Making forecast


Exploring alternatives Evaluating alternatives


105. Which one of the following represents a proper sequence of event

Execution, planning and control


Control, planning and execution


Execution, control and planning


Planning, execution and control


106. The principles that a subordinate should receive order and be responsible to only one boss is known .....

Unity of command Unity of direction


Unity of organization Span control


BKU-14142-A 16
107. Establishment of standards is related to the function of ....

Organizing Controlling


Directing Staffing


108. The main objective of controlling is .....

Motivating subordinates


Maintaining discipline


Improving skills of employees


Reducing gap between planning and performance


109. Span of management refers to .....

Authority relationship Decentralization


Life of organization No. of subordinates supervised by a manager
effectively



110. The probability of happening of future events can be known through .....

Estimation Forecasting


Planning Speculation


111. Decisions of repetitive nature are called ....

Programmed decisions Non-programmed decisions


Strategic decisions One-time decisions


112. Which one of the following permission is required to install and use franking machine in office

State Government Central Government


Telephone department Post-office


113. O and M stands for ...

Operation and Management


Organization and Management


Organization and Method


Office and Men


114. Which one of the following is not modern method of filing

Horizontal filing Vertical filing


Alphabetical order filing Lateral filing


115. The document stating office systems and procedure is .....

Office manual Office record


Office procedure Office register


116. A company can appoint only............. as a Company Secretary


An individual possessing required qualifications


A Partnership Firm


A Body Corporate


A Society registered under the Societies Registration Act


117. If a company's share capital is Rs. 2.5 crores, which one of the following will be eligible for appointment as secretary

Member of Institute of Chartered Accountants of India


The degree holder in Law


The post-graduate degree holder in Commerce


Member of Institute of Company Secretaries of India


118. Which one of the following is not a statutory duty of company secretary

Calling the meeting of Board of Directors


Affixing signature in the annual reports of the company


Issues of shares certificates


Responsibility of maintenance of books and registers properly


119. The company secretary is appointed by .....

Government Debenture holders


Share holders Board of Directors


120. Which one of the following decisions is not taken at Annual General Body meeting

Changes in Memorandum of Association and Articles of Association


Appointment of new directors in the place of retired directors


Appointment of auditor and fixing his salary


Approving and declaring dividend to share holders


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