1. Secret reserves may result by

(A)Creating general reserve


Providing excessive depreciation


(C)Over valuation of stock


Under valuation of liabilities


2. Window dressing is prohibited due to

(A)Convention of conservation


Convention of disclosure


(C)Convention of materiality


Accrual concept


3. Which of the following is an operating expense

(A)Bad debts


Salary of general manager


(C)Depreciation of plant


All of the above


4. Insurance unexpired account is a

(A)Personal account


Real account


(C)Nominal account


None of the above


5. The fundamental accounting equation Assets Liabilities is the formal expression of

(A)Matching concept


Dual aspect concept


(C)Going concern concept


Money measurement concept


6. Given Capital Rs. 4,00,000
Creditors Rs. 1,00,000
Revenues during the period Rs. 3,30,000
Expenses during the period Rs. 1,40,000

What is the amount of total assets

(A)Rs. 8,10,000


Rs. 6,90,000


(C)Rs. 6,00,000


Rs. 8,30,000


7. Net realizable value means

(A)Sales less sales returns


(B)Sales less cost incurred necessarily to make the sale


(C)Sales less gross profit margin


(D)Sales less cost of purchase


8. Valuation of inventory is dealt with in

(A)Accounting Standard


Accounting Standard


(C)Accounting Standard


Accounting Standard


9. In computing the cost of purchase of raw material consumed and cost of conversion, the value of by-product is

(A)Added


Deducted


(C)Neither added nor deducted


None of these


10. If the interval between the date a project is ready to commence commercial production and the date at which commercial production actually starts is prolonged, then as per AS-10 all expenses incurred are treated as

(A)Capital Expenditure


Revenue Expenditure


(C)Deferred revenue expenditure


Normally and in certain cases


11. In which method of calculating depreciation, interest on the cost of the asset is taken into account

(A)Fixed instalment method


Insurance policy method


(C)Sinking fund method


Annuity method


12. In case of sale on consignment basis, revenue should be recognized

(A)When goods are received by consignee


(B)When advance payment is received against consignment


(C)When goods are sold by consignee to a third party


(D)When consignee has settled full and final payment relating to consignment


13. Annual renewal fee for patents is a

(A)Capital expenditure


Revenue expenditure


(C)Deferred revenue expenditure


Development expenditure


14. Amount spent on an advertisement campaign, the benefit of which is likely to last for three years is a

(A)Capital expenditure


Revenue expenditure


(C)Deferred revenue expenditure


Contingent expenditure


15. Assets appearing in the book but having no value are known as

(A)Wasting assets


Intangible assets


(C)Current assets


Fictitious assets



16. Investment by owner results in

(A)Increase in capital and decrease in liability


(B)Increase in capital and increase in liability


(C)Increase in capital and decrease in asset


(D)Increase in capital and increase in asset


17. "Subscriptions collected in advance by a publisher" should be classified as

(A)Accrued asset


Accrued liability


(C)Unearned revenue


Prepaid expenses


18. If profits are 25% of selling price, what is the percentage of profit to cost




25%





33.3%


19. How the following liabilities are to be shown on the liability side of the Balance Sheet in order of permanence
1. Current liabilities and provisions
2. Secured loans
3. Share capital
4. Unsecured loans
5. Reserves and surplus



1


5


3


1


20. Which of the following accounts would have zero balance after closing entries have been posted

(A)Prepaid Insurance


Salary and wages expenses


(C)Delivery Truck


Interest receivable


21. Assertion :-Income tax paid is not shown on the debit side of the Sole Proprietor's Profit and Loss Account. Reasoning It is an appropriation of profit and thus goes to Profit and Loss Appropriation Account.

(A)Both the statements are correct and second is a correct explanation of the first


(B)Both the statements are correct but second is not a correct explanation of the first


(C)First statement is correct but second is not


(D)Both the statements are wrong


22. Closing stock appearing in the Trial Balance will be taken to

(A)Trading Account only


Balance Sheet only


(C)Trading Account and Balance Sheet


Profit and Loss Account only


23. A customer's cheque returned dishonoured is recorded in

(A)Purchases Return Book


Sales Return Book


(C)Cash Book


Journal


24. Debit signifies

(A)Increase


Decrease


(C)Either an increase or a decrease


None of these


25. Which of the following is not a book of original entry

(A)Cash Book


Ledger


(C)Sales Journal


Bills Receivable Book


26. Assertion Trial balance is conclusive evidence of the accuracy of books of account. Reasoning Agreement of trial balance gives a primary evidence that accounts are correct from arithmetic point of view.

(A)Both the statements are correct and second is a correct explanation of the first


(B)Both the statements are correct but second is not a correct explanation of the first


(C)First statement is correct but second is not


(D)First statement is wrong but second is correct


27. The following are some of the transactions of a business during a month
1. Selling goods for cash
2. Cash discount allowed to a customer
3. Cheque deposited in bank account
4. Cash withdrawn from bank
5. Received cheque from Raju and allowed him discount
6. Sundry expenses paid in cash
Which of these transactions are contra entries in cash book

and 4


3 and 4


2 and 6


4 and 5


28. When a company issues shares to vendors of assets for a consideration other than cash, such shares are issued

par


at discount


a premium



any of these



29. When shares are forfeited, the share capital account is debited with the

(A)nominal value of shares


paid value of shares


(C)called up value of shares


market value of shares


30. According to the Companies Act, a 'Reserve Capital' is created

(A)for a specific purpose at any time during its working life


(B)for issue to the existing shareholders as rights issue of share


(C)for conversion of fully convertible debentures into equity shares


the uncalled portion of the share capital of a limited company to be called up only in the event of winding up


31. Discount allowed on the re-issue of forfeited shares can not exceed

(A)Amount not received on forfeited shares


(B)Amount received on forfeited shares


of the paid up capital


of the capital re-issued


32. "Capital Redemption Reserve Account" is created

(A)voluntarily to accumulate funds to redeem preference shares in future


meet legal requirements regarding redemption of preference shares


(C)out of share premium account to redeem preference shares


(D)out of share forfeiture account to redeem preference shares


33. Assertion Sinking fund investment account sometimes shows a debit balance and sometimes it shows a credit balance. Reasoning Sinking fund investment is an asset but it represents a fund which is a liability.

(A)Both the statements are correct and second is a correct explanation of the first


(B)Both the statements are correct but second is not a correct explanation of the first


(C)First statement is correct but second is not


(D)Both the statements are incorrect


34. Debit balance of Receipts and Payments account indicate

(A)The loss incurred during the period


(B)The excess of incomes over expenditure of the period


(C)The total cash payments during the period


(D)Cash in hand or bank balance on the date of the balance


35. Sale of grass in the case of a sports club is

capital receipt


An asset


revenue receipt


None of these


36. Tournament expenses should be

(A)posted as expenditure


(B)deducted from tournament fund


(C)recorded as deferred revenue expenditure


(D)records as capital asset


37. Specific donation received by a charitable hospital is

(A)Always capitalized


(B)Capitalised only when the amount is large


(C)Always treated as income


(D)None of these


38. Q and R are partners in a firm. If S is to be admitted as a new partner

(A)old partnership has to be dissolved


(B)old firm has to be dissolved


(C)both old firm and partnership have to be dissolved


(D)neither firm nor partnership need to be dissolved


39. When interest is to be allowed on the capitals of the partners, it is calculated on the

(A)average capital


capital at the end less drawings, if any


(C)capital at the end of the year


capital in the beginning of the year


40. New profit sharing ratio is calculated at the time of

(A)admission of a partner


retirement of a partner


(C)death of a partner


all of the above


41. The loss of a firm when all the partners are insolvent is to be borne by

(A)Partners


Government


(C)Creditors


None of these


42. Amount realized from the sale of private estate of partners is used first to pay off

(A)Bank loans of the firm


Wife'sloan


(C)Private debts of the partner


Debts of the firm



43. Fixed deposits are shown in the balance sheet of a company under the head

(A)Secured loan


Unsecured loan


(C)Current Liability


Contingent Liability


44. 'Calls in arrear' is shown in the balance sheet on the liability side

deducting the amount from the share Forfeited Account


deducting the amount from the Capital Reserve


(C)under the heading "Reserves and Surplus"


deducting the amount from the called up capital


45. Stock turnover ratio is a

(A)Solvency ratio


Profitability ratio


(C)Activity ratio


Liquidity ratio


46. When current ratio is an equal increase in current assets and current liabilities would

(A)increase the current ratio


decrease the current ratio


change in the current ratio


none of these


47. In calculating the return on shareholders equity, the denominator is

(A)equity capital


(B)preference capital


(C)equity capital plus preference capital


(D)equity capital plus preference capital plus reserves


48. Pay out ratio means

(A)Ratio of debtors to creditors


(B)Ratio of cash to funds


(C)Ratio of earning that are distributed through dividends


(D)Ratio of Profit distributed to profit retained


49. The time required to process and execute an order is called

(A)Time schedule


Lead time


(C)Lag time


Ordering time


50. While preparing a fund flow statement, the provision for taxation should be taken as

(A)current liability


(B)contingent liability


appropriation of profit


a current liability or an appropriation of profit


51. Consider the following items for a period
1. Increase in debtors
2. Decrease in debtors
3. Increase in stock
4. Increase in prepaid expenses
5. Increase in outstanding expenses
Which of these items are added to net profit to compute cash from operations

3 and 4


4 and 5


and 5


3 and 5


52. The main object of audit of accounts of a partnership firm is to

(A)Increase the goodwill


Detect errors and frauds


(C)Increase the profits


Meet the statutory requirements


53. Internal auditor is appointed by

(A)The management


The shareholders


(C)The Government


The statutory auditor


54. The scope of interim audit falls within the purview of

(A)Internal control


Efficiency audit


(C)Partial audit


Final audit


55. Vouching relates to

(A)Cash payments


Cash receipts


(C)Credit transactions


All of these


56. The auditor of a company

(A)Has right to attend only annual general meetings of company


(B)Has a right to attend only those meeting where accounts are being discussed


(C)Has a right to attend every general meeting of the shareholders


(D)Has the right to attend only those annual general meetings in which the Board of Directors decide to invite him


57. Consider the following documents

1. Audit Notebook
2. Audit Programme
3. Audit Report
4. Audit Files

Select the correct sequence in which an auditor prepares the documents

4


4


3


3



58. Assertion Internal audit must be carried out by a qualified Chartered Accountant. Reason It is a managerial tool.

(A)Both assertion and reason are true and reason is the correct explanation of assertion


(B)Both assertion and reason are true but reason is not a correct explanation of assertion


(C)Assertion is true but reason is false


(D)Assertion is false but reason is true


59. Special audit can be ordered by

(A)Preference shareholders


Central Government


(C)SEBI


Debenture holders


60. The scope of external audit in the case of partnership firm is decided by

(A)Company Act, 1956


Partnership Act, 1932


(C)Income Tax Act, 1961


Letter of Appointment of Auditor


61. Public enterprise refers to such industrial and commercial enterprises which are owned and managed by

(A)Private owner


Public


(C)Central or State Governments


None of these


62. SBI is a

(A)company limited by guarantee


company limited by shares


(C)statutory cooperation


anunlimited company


63. The name of the company may be changed by

(A)Simple resolution


(B)Special resolution


(C)Special resolution and with the approval of the Central Government


(D)None of these


64. Statutory Meeting, Annual General Meeting and Extraordinary General Meeting require ........ notice.

days


10 days


days


21 days


65. What is the purpose of Extraordinary General Meeting

transact ordinary business


transact day to day business


transact some special or urgent business before the next annual general meeting


(D)all of the above


66. Which of the following sections provide every shareholder a right to vote

(A)Section 80


Section 87


(C)Section 95


Section 105


67. Which of the following is an extractive industry

(A)Cattle breeding


Forest Cultivation


(C)Flour Mills


Hunting


68. A partner in a firm

(A)cannot transfer his share to an outsider


(B)can transfer his share to an outsider with the consent of majority partners


(C)can transfer his share to an outsider without the consent of any other partner


(D)can transfer his share to an outsider with the consent of all other partners


69. The minimum number of members required for registration of a cooperative is

(A)Two


Seven


(C)Ten


Twenty


70. A coparcener is one who is

active member of a partnership


a member of a joint Hindu Family firm


member of joint Stock Company


a member of Cooperative Society


71. Ultra Vires means

(A)Within power


Beyond Power


(C)Essential


Desirable


72. New issue market is concerned with

(A)new as well as second hand securities


second hand securities


(C)new securities


none of these



73. Which one is not a speculator in the stock exchange

(A)Brokers


Bull


(C)Bear


Stag


74. Contango charge is paid by

(A)bull speculator to bear speculator


bear speculator to bull speculator


(C)lame duck to bull speculator


all of these


75. When a right to sell a security is acquired, it is known as

(A)call option


put option


(C)double option


forward


76. ACC (Associated Cement Company) is an example of

(A)Vertical Combination


Horizontal Combination


(C)Circular Combination


Diagonal Combination


77. Cartel is a form of

(A)Trade Association


Federation


(C)Partial consolidation


Complete consolidation


78. When custom duty is levied according to the weight of goods, it is known as

(A)Revenue duty


Excise duty


(C)Specific duty


ad-valorem duty


79. Refund of excise duty and custom duty paid on inputs used in exported final product is

(A)Duty Drawback


Duty Refund


(C)Duty Return


Duty Concession


80. EXIM Bank provides Financial Assistance to

(A)Indian Exporters


(B)Indian Importers


(C)Exporters and Importers of third world countries


(D)All of the above


81. In marine insurance, the insured must have insurable interest at the time when

(A)Policy is taken


(B)The event happens


(C)Policy is taken as well as when event happens


(D)Throughout the period of contract of insurance


82. The principle of subrogation applies to

(A)Fire insurance only


Marine insurance only


(C)Life insurance only


Fire and marine insurance


83. Uberrimae fidei means

(A)Insurable interest


Free consent of parties


(C)Utmost good faith


Legality of consideration


84. The general insurance business was nationalised on

(A)13th May, 1970


13th May, 1971


(C)13th April, 1972


30th May, 1974


85. Concept of Scalar chain is given by

(A)Ernest Dale


Henry Fayol


(C)F.W. Taylor


Luther Gulick


86. The book entitled "Shop Management" is written by

(A)Henry Fayol


Mary Parker Follet


(C)F.W. Taylor


Max Weber


87. Bureaucratic Model of Management is given by

(A)Max Weber


Henry Fayol


(C)F.W. Taylor


Robert Owen


88. The Hierarchy of objectives is given below
1. Individual objectives
2. Overall objectives
3. Mission
4. Department objectives
5. Group objectives
6. Main divisional objectives
7. Sectional objectives
What is the right sequence of these objectives

3


2


1


7



89. The terms speed boss, route clerk etc. are used in relation to

(A)Line organization


Line and staff organization


(C)Committee organization


Functional organization


90. The famous book "The Philosophy of Management" was written by

(A)Henry Fayol


Oliver Sheldon


(C)F.W. Taylor


Mary Parker Follet


91. Hawthorne Experiments conducted between ......... at Hawthorne plant of ....... by .......


(A)1927 1934, Western Electric Company, Elton Mayo


(B)1927 1932, Western Electric Company, Henry Fayol


(C)1927 1932, Western Electric Company, Elton Mayo


(D)1927 1935, Eastern Electric Company, F.W. Taylor


92. Principles of organization were propounded by

(A)Henry Fayol


Mooney and Reilley


(C)Davidson


G.R. Terry


93. Span of management means

good organization should consist of departments


(B)Authority of each person must be clearly defined


(C)Each subordinate should have one superior


manager can supervise a limited number of executives


94. Functional organization was first developed by

(A)Military


F.W. Taylor


(C)Henry Fayol


Elton Mayo


95. SEBI is a

(A)Statutory body


Advisory body


(C)Constitutional body


Non-statutory body


96. OTCEI is

(A)Atomic Submarine of China


Economic Policy of USA


Indian Share Market


A Defence Research Organization


97. In "Line and Staff" organization, the authority lies in

(A)Line


Staff


(C)Both Line and Staff


Neither Line nor Staff


98. Directing function of management embraces activities of

(A)Issuing of orders to subordinates


(B)Supervising subordinates


(C)Providing adequate leadership to subordinates


(D)All of these


99. Expectancy Theory of Motivation is given by

(A)Herzberg


Vroom


(C)Porter and Lawler


Maslow


100. If a superior has two subordinates, what is the total number of relations among them










7
101. As per the Management By Objectives

(A)Objectives are set through participation of superior and subordinates


(B)Individual objectives coincide with the objectives of the organization


(C)Performance should be evaluated periodically


(D)All of the above


102. Effort reward relationship is considered in

(A)Vroom's theory of motivation


McClelland's theory of motivation


(C)Equity theory of motivation


All of the above


103. Franking machine is used for

(A)Duplicating


Punching cards


(C)Accounting work


Stamp fixing


104. In which of the methods of filing, files or folders are kept in a horizontal position

(A)Vertical filing


Suspension filing


(C)Lateral filing system


Box files



105. Indexing is an important

(A)Aid to filing


Method of filing


(C)Method of maintaining account books


Method of maintaining statistical books


106. Mimeograph is a

(A)Process of blue printing


Stencil duplicator


(C)Process of electrical photography


Method of photo coping


107. Blue printing is also known as

(A)Xerography


Diazo


(C)Microfilming


Lithography


108. The concept of punched cards was invented by

(A)Hallerith


Babbage


(C)Blaise Pascal


Howard Aiken


109. The first electronic computer system was developed in

(A)1920


1930


(C)1940


1950


110. Match the following

1. Communication System A. Hectograph
2. Filing System B. Telex
3. Duplicate copies C. Franking Machine
4. Fixing Stamp D. Pigeon Holes

AB CD

4 2


2 1


1 3


3 4
111. A Company Secretary is appointed by

(A)The Government


Debenture holders


(C)The Board of Directors


Shareholders


112. A meeting of the Board of Directors must be held at least once in

(A)Every month


Every two months


(C)Every three months


Every four months


113. Which of the following company must hold a statutory meeting

(A)Private Company


Public Limited Company


(C)Unlimited Company


All of these


114. The first annual general meeting of a company must be held within

months from the date of its incorporation


months from the date of commencement of business


months from the date of its incorporation


months from the date of commencement of business


115. Who is not consented for the purpose of quorum

(A)Proxies


A nominee of the President of India


nominee of the Governor


All of these


116. Which of the following clause is related to Employees Stock Option

A in Section 3 of Companies Act, 1956


A in Section 2 of Companies Act, 1956


A in Section 5 of Companies Act, 1956


A in Section 2 of Companies Act, 1956


117. As per Companies Act, 1956, the amount payable on application of each share shall not be

(A)Less than of the nominal amount of the share


(B)Less than of the book value of the share


(C)Less than of the market value of the share


(D)None of these


118. The remuneration to manager is governed by

(A)Section 287 of the Companies Act, 1956


(B)Section 387 of the Companies Act, 1956


(C)Section 387 of the Remuneration Act, 1965


(D)Section 187 of the Companies Act, 1956



119. A company secretary should have thorough knowledge and understanding of the provisions of

(A)Company Law


Labour Laws


(C)Tax Laws


All of these


120. Account books along with the vouchers of a company should be preserved in good condition for how many preceding years







10


15