10, cts 2, B PAPER - B WRITTEN TEST PAPER FOR SELECTION OF TEACHERS : CSB 2013 COMMERCE(PGT) : SUBJECT CODE : P43 ‘The term “current asset” does nat include {a)Cash (b)Stock-in-tradie ()Fumiture (@\Advance payment Accordingto the: concept, theproprietoris treated as a creditor ta the extent of his capital. {a)Cost (D)entity [e)Maney measurement (d)Dual aspect ‘The comparison of net profit with the sales of the same year istermed com {a)Horizontar (e)Etiptical parison: (bWertical (a)Muttidimensional Convertible debentures are thase on which [alAccumulated interest payable is converted into equity shares {blinterest is not paid when the company is running in a loss {clinterest is payable and if not paid, keeps on accounting XjEquity shares may be exchanged at the option of the debenture holders Heaw initial expenditure on advertising the launch of a new product should be classified as {a)Capital expenditure (b)Revenue expenditure {eA loss (d}Deterred revenue expenditure Insurance unexpired account isa account {a)Personal (p)Nomminal {e)Real (apricttious Which ofthe following is/are member (s}of the International ‘Accounting Standards Committee? {a)The ical fo) The ICWaI {¢) Both(a) andifb) (@) Neither{3) nor(t) Mark out which is not a capital expenditure, {a)Cost of issuing shares and debenture {b)Wages paid for construction of a new office (e)Purchase of a new spark plug for Rs.2.75 {¢) Repair on a secondhand vehicle newly purchased IF Rs.15,000 is spent on the repair of a secondhand machinery and Rs.2,500 on freight in connection with is Sequistion, what isthe amount of capital expenditure ? fa)Rs 15,000 (B}Rs 17,500 eis 12/500 (es 2.500 When net profit is Rs 44,000 and profit on sale of a fixed asset is Rsd,000, what is the fund from operations? (a) Rs 40,000 (B)Rs 44,000 {e) Rs 48,000 (@\Cannothe computed When total sources of funds are Rs 1,25,000 and tatal applications of funds are Rs 1.50,000, The result would be (a)Net increase in working capital by Rs 25,000 {b)Net decrease in working capital by Rs25,000 {c) No effect on working capital {d) None of the above consistency calls far financial statements for 3 number of years to be reviewed and analysed. (a)Horizontat [c)internal (b\vertical (a) External Window dressing is prohibited owing to (2) Convention of disclosure {b) Convention of materiality {c) Convention of conservatism (4) Accruat concept 4. If stock worth Rs.10,000 (that has not been insured}is destroyed by'fire, the accounting entry is {a} Dr Profit Boss A/c 10,000 ‘Cr Trading A/e10,000 {b) Dr Stock A/c10,000 Cr Trading Afc 10,000 {)Dr Trading Ae 10,000 CrStack A/ci0,000 {@)Noneof theabove 15, An entry of Rs 840 being debited to Surbhi's A/c as Rs 480 ‘would be an error of, {a} Principle {c} Omission (b) Commission (a)Negigibie significance 16, If M.Gul a debtor of Rs 4000 has become insolvent and a dividend cf S09 is declared, the entry is {a} Dr Bad Debts 2000 To P&LA/e 2000 {b)Dr Cash 2000 To Bad Debts 2000 {e) Dr Cash 2000 To Debtors 2000 (a) Dr Bad Debts 2000 To Debtors 2000 17. Investment by the owner would result in in capital and increase in {a} Increase; liability (0) Increase; asset TE) Decrease; liabilety (a) Decrease; asset 18, Given: Net assets of a business on Jan.J are Rs 40,000, and ‘on Jan.31 Rs 8,000 Find the net income for January. {a} 6000 (b) 8000 {e) 2.000 (¢)zZera 19, Which of the following transaction result in increase of assets and increase in owner's equity 2 {a} Bonus shares issued —(b) shares issued for cash (c)A dividend is declared (0) All ofthe above 120. Identify the transaction that willrasult in decrease in awmer's ‘equity and increase in liabilities. {a] Issue of bonus shares {b) Shares issued in payment of bills payable (©) Shares issued for purchase of land and building {@)Noneof theabove 21. Inthe absence of an agreement to the contrary, the partners, are entitied to intereston loans to the firm, (a) 6%; only when there are profits ‘{b) 356: only when there are profits {c) 6%; whether or not there are profits {d)9%; whether or nat there are profits 22. X and ¥ are partners sharing profits in ratio of 3:2. A is admitted as a partner entitled ta 1/3 Share of the profit. Tick the new profit sharing of X.Y and A. (a) 32:1 rope (46 lejos: 23. A, Band are partnersin the ratio of 1/5 : 18 : 745 Cretires ‘and his share fs takon up by A and B in the ratio of 3: 2The ‘pew profit-sharing ratio will be (a) 13:12 (b) 1d: 15 (5:18 ta) 32-13Br 3B 25 a. br cs} 31 32, 2 5 What would be the accounting entry for a partner's withdrawal of cash in Feu of salary ? {@) Dr salary Alc To Cash Ale {b) Dr Cash A/c Te Dariner’s Current A/c {e) Dr Cash Ale To Salary Ale (d) Dr Partner's Current A/c To Cash Ne ‘Agjustment Entry for rent recelved in advance would be- {a} Cash AYc Dr, ‘To Rent Received in Advance A/c {b) Cash A/c Dr. To Rent A/c [e)Rent Ac Dr ‘Ta Rent Received in Advance AV ¢ {¢) Advance Rent 4 /1c Dr: ToRent A/c imum amount called on application for issue of — oF face value. (b) 258 (a) 40% Given: Stock of stationery on Jan. 1, 2011 Rs 400 Stock of stationary on Dec. 31,2011 Rs 100.Payment for stationery during 2031 Rs 1200, Creditor or stavoneryon Des. 3.2014 ‘What is the amount of stationery that will be posted to the Income and Expenciture A/cfor the year ending Dec 31,2011? ‘The shares (3) 5% (c) 30% {a)As. 1150 (b)Rs.1650 (c)s. 850 (q@)Rs.1050 What amount on account of subscription income will be parted ta the Income and Expenditure A/cfor the year ended Bec 31,2011? {a)As 8000 (bjs 8200 (e)Rs 8400 (@)Rs 3600 To arrive at the subscription income for a year, which of the following would you deduct fro the amaunt af subscription received during the year ? in advance for the following year ) Subscriptions in arrearin the beginning of the year d) Allof the above Given: Machinery cost fs 20,000. Serap value Rs 10,000. Life Syears, Rate of interest 5%. Reference to sinking fund table 10,180575.The depreciation per year will be a) As 4.000 by) Rs 3619.50 ) As &,000 i} Rs 5429-25 When a company issues shares at a premium, the premium ‘amount will be received by it along with 2) Application money —_b} Allotment money ¢) Calls 4) Any of the above ‘To what rate does the law limit the commission payable on the iscue of debentures? a) bya €) 34% ores What rate should the commission payable on the issue of debentures nat exceed? a) 236 by) 3% ¢) a dy 556 When FIFO method is in use, the closing inventory is valued at 2) Prevaifing market price b) Recent cost paid ) Oldest price paid i} Price furthest from actualcost If the cost of goods sold is Rs 1 Lakh and the opening and closing stocks are Rs 20,000and As 30,000 respectively, what wil be the stock tumover ratio ? a) 333 times b) Atimes ) Stimes } 6 times 36, Match the following: st | List 11 A Test of activity Acid test ratio 8. Test af liquidity Debt equity ratio C Test of profitability Ill Debtor's turnover ratio Test of solvency IROL i oF ow aot om i Ww bon ot ow ot qv mut go om tow wt 437, fatan annual general meeting, no auditors are appointed: cor reappointed, a) The board of directors appoint a person to fill the vacancy bb) The union government appoints an auditor } The managing director appoints an auditar 4) An extraordinary meeting is called 38. In which year the Charted Accountants Act was passed? a) 1527 b) 1548, c} 1949 d) 1950, 29, What determines the duties of an auditor of @ partnership fim? aa) The Partnership Act bb) The Partnership deed ¢} The agreement entered between the partnershipand auditor 4) Retevant provisions of the Companies act 40, During the course of an audit, the auditor stumbled upon a balance of Rs 12,500 in the Goodwill A/c and ascertained thatit had nat been written aff over a lang peried. What may the auditor do with it 2 a) Advise the concern to write itoft 1b) Hide it from the management } Insist that itbe written off the same year 4) Recommend to the concern thatit be written off over a period of five years 41, Matrix type of marketing organizat ingle product. single market situat 'b) Multi product, muiti market situation. | Multi product, single market stuation 4) single product, multi market situation is most suited for 42. Generated increased sales by neglecting quality contrat, production efficiency and for eash flow management are 23) Over marketing ) Remarketing eVUndermarketing ——g) demarcating. 43. When 2 change in customers tastes and preferences and market structures in general occurs it is termed as a market inertia 'b) market planning cc)Market drift. dd) market change 4M. Market orientation is a technique of selecting, alPraduct integration b)Concentrated marketing } Additional segmentation d) Marketing mix 145, When buyers have too-narrow an image of brand, s known as. ‘a under positioning errar b}doubtful positioning error c)confused positioning errar dover positioning errar. ‘96, Under the companies act, 1956, a person can be a director in a 7 companies 'b) 10companies } 20 companies. d) 25 companies 47. Which one of the following is not an example of profitability ratios? b)RO! a} OPERATING RATIO chEPS d) INTEREST COVERAGE RATIO.AB, The buriget which commonly takes farm of budgeted profit, and loss account and balance sheet is a) cash budget b}master budget. ) flexible budget 4 sales budget 43. The physical possession of equity shares in case of GDR is with a} depository by custodian. ) foreign investor d}Goverrment calculating the value of equity share by yield method information is required regarding a) NRR. ‘b} net asset of business ¢) face value of share dj all of the abave 51, Life insurance premiums received by an insurance company should be classified as a) accrued asset ) prepaid expense bb accrued lability djunearned revenue 52. The speculative activity that seeks a profit from price variations of securities in the different markots a) Margin trading by Market rigging } Option dealings dd} Arbitrage 53,The maximum limit of partners infirm has been specified by a) the Indian partnership act 1232 bb) the Indian contract act 1872, ) the Indian companies act 1956 d)both A&B 54, Accounting entry for recording loss on the realization of sinking fund investment is 2) Sinking fund afc Dr ‘Sinking fund investment a/c 'b) Sinking fund investment a/e Dr Sinking fund AV Prof & loss Ae Dr Sinking Fund investment A/c d) Sinking fund inwestment A/c Dr Profit & loss. A/c 55. The method ignores cash generation beyond period when cach inflow exceeds investment ‘a)pay back method. BARR. c)NPV aj iRR 56. Contage charge is one paid by a spectator to a ‘spectator. ll bb} Bull, bear 13) Bear, bol ¢) Lame duck, bull 4) Lame duck, bear 57, When the name of the transferee is nat filled in the transfer deed, itis called a/an a) F bb} Option dealing ) Blank transfer dd Forward dealing 58. The salient features of Deep Discount Bonds doesn't include a) it carries a fixed rate of interest bb) DDB are issued to face value bond c)These are zero interest bonds di) difference between sales price and original cost is inwestors profit 59, Total leverage is a combination of a} financial leverage and EPS bb) operating Leverage and EPS ) financial leverage and operating leverage 1) financial leverage and operating leverage and EPS ick rofors torrisk which is caused due to factors Unique or félated to a firm or industry a) systematic bb unsystematic ce) market 4) interstate 61. According to DOW theory the market is always considered ashaving ‘maverents, all growing at thesame time all Ba q2 dja 2. The fixed price at which an option may be exercised, known a price a) Serting by bid chhammer dialled up 3. For rogistering the transfer of sharesin the name of the buyer share transfer stampsare required at___%ad valorem ajO2s BOSD as 64, Black- scholes pricing model is used for a] option 1) forward cHfuture d) all ofthe above 65. An investor would buy a bond if a) the intrinsic value is lower than the market value 'b) the intrinsic value is higher than the market value, c}the currant market value is lower than the redemption value 4) the required rate of retum is equal ta coupon rate of interest 66. Low asset turnover may indicate a) low assets bb) high cost of maintenance ch idle assets d) all of the above 67. The phenomenon of aver trading in working capital is characterized by a less amount of cash invested in currant ascets 'b) overcapitalization of the company as compared to volume of sales ¢) high amount of cash invested in current assets 4) Allof the above 68. Underwriting commission on shares as per SEBI guide lines a 435 and above b)35- 4% )3-3.25%6 ) upta.2.5% 69, Ulta basi’ is achargepayablebya__toa. ) Bull, broker ') Bear, Broker } Bear, bull ) Bull, bear 70, Euro convertible bonds issued by Indian companies refer to ‘bonds issued in foreign currency in a} India or any country outside India bb) European countries only ¢} India and any country in Europe 4) any country other than Indiz 71, Which of the following provides liquidity to money market instruments by creating a secondary market where they can ‘betraded? ByNSDL a) DFHI 1) OTCEL c) SBI 72, GIVEN FIXED COST=Rs 20000/-, the operating BEP in units=2500 and financial BEP = Rs 4000, the overall BEP in units is. a} 3000 b) 5000 8000 } 4000 73. The agency which has to give approval to any company intending to come out with a public or right issue, issue related guidance etc is 3) RBI ISEB! sce ajc 174. &s per earning per share approach cost of equity can be can be calculated as (where gis growth rate) al Yeurrent market price 'b}EPS/CURRENT MARKET PRICE J EPS{ieg/current market price(-g) 4) EPS/current market price(l+g) 75. What does ‘blue chip’ denote ? a) Shares likely to yield meager returns bb) Shares listed in the stock exchange ¢} Shares guarantead by the government ) Shares consistently yielding high returns76. When credit balance in invisibles account is greater than the debit balance in merchandlze account, there is a a) capital account surplus b) current account surplus ©) capital account deficit dd) current account deficit 77. If the convertibility of currency is restricted to certain foreign currency transactions, itis termed 3s 3) full convertibility ') partial convertibility ¢} current account convertibility dd) capital account convertibility 78, The exchange market of India consists of a) authorized dealers bb) RBI c} Overseas banks to some extent di) all of the above 79, Which committee was formulated to look into the matter of capital account convertibility in India? a) Narasimham committee b) Tarapore committee c}Tendon committee djChore committee 80. A TOM rate quoted is for delivery on the a) same day ‘b} second working day ) third working day i} following day BI. According to Haney, ‘excessive competition’ served as a force in leading to the formation of business combinations. ‘3) Beckoning c) Facilitating b} Driving 4} Compelling 82. Leading and lagging are used for a) hedging 'b) speculating jeeducing taxes djany ofthe above 83, Which of the following are the internal techniques for ‘managing foreign exchange exposure? a} netting by futures ©) leading and lagging all excepto} 84, When operating profit ratinis 25% and capital turnover artio is 23what is the ROP 3)75% 50% ©)25% djnone of the above 85. Cash flaw statement is prepared as per accounting standard alas 5 bpAst clas Ass? 86. Which one of the following formulze is used to calculate ‘ross relationship under the span of contral? a}n (nt) b}n(2n-1) c)n{2n+n-t} d} None of theabove 87.Cartel isa form '3) Federation bb) Trade ascaciatian ¢) Chamber ofcommerce 1d) Complete consolidation 88, Complete consalidation as a class of business combination may include 3) Mergers and acquisitions b) Pools and cartels ) Trusts and holding companies a) Trade associations and chambers of commerce 89, In stock exchange operations, whan the speculator buys the right to sell ascertain number of shares on an agreed amount af a specified time, itis known as a) no option bi) call option ©) put option 4} double option 90, Where all the debentures are redeemed, the balance left in the debenture sinking fund account is transferable to 2} debentures afc ») sinking fund investment a/c <} capital redemption reserve si) general reserve 91. Capital employed in a business is Rs 150000.prafits are ‘Rs 50000/-and the normal rate of profits is 20%.the amount ‘of goodwill as per capitalization method wauld be a} Rs100000 'b) Rs150000 ¢} Rs 200000 di) Rs 300000 92. The basis of theory Zs the reliance on a} external control of human behaviour ‘self control and self direction ¢} the belief that productivity is Finked to trust, openness, ‘subtlety and intimacy in the work environment. dd) Gavernment regulatory frame wark 93, Which of the following forms of combinations involve certain dagrae of control over supply of goods in the market ? a) Trade association ‘bj Chamber of commerce ‘c} Pool ‘d) Allofthe above 4. Deferred payment arrangement aim at Financing a} working capital needs b) redemption of debts } purchase of GDRs ) import of plant and machinery 95. The combination of firms in successive stages of same. industry may be referred to as al harizontal integration ‘b) vertical integration ¢} forward integration 4) backward integration 96, The motivational process and not the motivators as such is associated with a] need hierarchy theory 'b) two factor theory chberg theory expectancy theory 97. When jobs are broad ended in scope and complexity so that the persons overall area of job responsibility increases, it i acaseof a} job evaluation 'b) job specification ¢}Job enlargement dj] job enrichment 38, Owners equity stands for al fixed assets. fixed abilities b) fixed asstes — current liabilities ‘c) current assets-fined liabilities 6) total assets ~total liabilities, 99, The form of combination that sees a group of common shareholders or directions managing the policies of several companies, without any formal central administration, is 3) Community ofinterest b) Trust ¢} Informatagreement — di) Holding company 100, The ACC (Associated Cement Company) in India that does ‘not operate its own plant, but was established only to contro! the subsidiaries is ar: instance of a/an a) Offspring Pure ) Mixed a) Primarya PART.‘B’ : Commerce (PGT) : SUBJECT CODE : (P43) GENERAL INSTRUCTIONS DO NOT open this booklet until you are asked te do so. FILLSCHOOL CODE, REGN NUMBER ON OMR ANSWER SHEET CAREFULLY AND SIGN ON THE RIGHT BOTTOM CORNER OF OMR SHEET. Total duration of the test is 2 Hours and Maximum Marks are 120. There are total 100 questions. All questions are objective type-multiple choices. All questions carrying equal marks. DO NOT write anything on this question booklet. After the test, please return this booklet along with OMR-Answer sheet to the invigilator. You are not allowed to leave the examination hall before 1300h. Instructions for filling the OMR Sheet Read instructions printed on the OMR Sheet carefully before answering. Each item has four choices; A, B, Cand D. Each choice is denoted by a circle. Shade the appropriate circle using Blue/Black Pen. Be absolutely sure of your option before shading the circle since you are not permitted to erase your response once shaded. More than one response will make your answer invalid. There is NEGATIVE MARKING for wrong answer. Rough Work 9. For any rough warkuse the separate sheet provided along with the text booklet. DO NOT do any rough work on the answer sheet or any other paper.