15. Which statement is not true in respect of a Balance Sheet ?

(A) It is an account
(B) It is prepared every month
(C) It is prepared to check the mathematical accuracy
(D) All the above
See Answer:
16. Few items of P/L A/c of a company are
Sales Rs.1,60,000
Closing stock Rs.38,000
Non-operating Expenses Rs.800
Non-operating Income Rs.4,800
Net Profit Rs.28,000
What is the Operating Profit Ratio ?
(A) 18% (B) 20%
(C) 15% (D) 57%
See Answer:
17. Net profit after tax of Rs. 2,00,000 is Rs. 4,00,000. Share capital is Rs. 8,00,000 and revenue
reserve is Rs. 2,00,000. What is rate of return on equity ?
(A) 40% (B) 50%
(C) 60% (D) 75%
See Answer:
18. Goods worth Rs. 24,000 were returned by X. The accountant however credited the sales returns
account by Rs. 42,000. In order to rectify this error, what should be done ?
(A) Debit the sale return by Rs.42,000
(B) Credit the sales return account by Rs. 24,000
(C) Debit the sales return account by Rs. 66,000
(D) Debit the sales return account by Rs. 18,000
Answer: Debit the sales return account by Rs. 66,000
19. A machine with a written down value of Rs. 10,000 has been sold for Rs. 13,000. The amount
realized is a
(A) Capital receipt and profit involved should be transferred to Capital Reserve
(B) Revenue receipt
(C) Capital receipt and profit involved should be transferred to General Reserve
(D) Capital receipt and profit involved should be transferred to Profit and Loss A/c
Answer: Capital receipt and profit involved should be transferred to Capital Reserve
20. Rs. 10,000 spent on the replacement of worn out parts of an electronic machinery is treated as
(A) Capital expenditure (B) Revenue expenditure
(C) Deferred revenue expenditure (D) Capital loss
Answer: Revenue expenditure -

1-Break even, means:

(A) Costs are more than revenue

(B) Revenues and cost are equal
(C) Revenues are more than cost
(D) None of the above
(Ans: B)

2-Goodwill is a:
(A) Liquid asset
(B) Fictitious asset
(C) Current asset
(D) Intangible asset
(Ans: D)

3-Which of the following is a current liability?

(A) Debenture
(B) Long term loan
(C) Bank overdraft
(D) Share premium
(Ans: C)

4-Garner Vs Murray relates to:

(A) Deficiency A/c
(B) Insolvency
(C) Contract
(D) Hire purchase
(Ans: B)

5-Intangible assets usually fall in the category of:

(A) Current assets
(B) Fixed assets
(C) Semi fixed assets
(D) None of the above
(Ans: B)

6-Which one of the following is shown first when the assets are
arranged in the order of their liquidity?
(A) Cash in hand
(B) Debtors

(C) Investment
(D) B/R
(Ans: A)

7-The balance-sheet is only:

(A) An account
(B) A summary
(C) A statement
(D) None of the above
(Ans: C)

8-Teeming and lading relates to:

(A) Pilferage of stock
(B) Misappropriation of cash
(C) Frauds relating to the receipt of money from debtors
(D) Bribery of cash for some benefits
(Ans: C)

9-Acid test ratio is:

(A) Current assets: current liabilities

(B) Quick assets: current liabilities
(C) Total assets: total liabilities
(D) Fixed assets: fixed liabilities
(Ans: B)

10-If earning price (EP) ratio is 0.05 and Earnings per share is Rs. 8,
the market price of share = :
(A) Rs. 40
(B) Rs. 100
(C) Rs. 160
(D) Rs. 0.40
(Ans: C)

11-Span of management refers to:

(A) Activities performed by a manager
(B) Number of subordinates supervised by a manager
(C) Number of superiors a manager has to report to
(D) None of the above

(Ans: B)

12-MBO refers to:

(A) Management by objectives
(B) A technique of achieving organisational goals
(C) Performance review
(D) None of the above
(Ans: A)

13-Who has propounded the X and Y theory of motivation?

(A) Mc Gregor
(B) Vroom
(C) Herzberg
(D) ODonnel
(Ans: A)

14-Who introduced the concept of MBO?

(A) Mary Parker Follet
(B) Keith Device

(C) Peter Drucker

(D) None of the above
(Ans: C)

15-The concept of Managerial Grid has been propounded by:

(A) Black and Mouton
(B) Likert
(C) Fiedler
(D) None of the above
(Ans: A)

1-Process of planning begins with

(A) Forecasting
(B) Setting objectives
(C) Setting policies
(D) None of the above
(Ans: B)

2-Which among these is not a feature of decision making process?

(A) Persuasiveness
(B) Intellectual
(C) Line function
(D) None of these
(Ans: C)

3-Which of the following is the function of a leader?

(A) Representing
(B) Integrating
(C) Guiding
(D) All of these
(Ans: D)

4-The main advantage of functional organisation is:

(A) Simplicity
(B) Specialisation
(C) Experience
(D) None of these
(Ans: B)

5-Delegation of authority implies:

(A) Delegation of authority to lowest level of management
(B) Delegation of responsibility
(C) Delegation of authority to immediate subordinates
(D) None of the above
(Ans: C)

6-Which among these is not a sub-function of directing?

(A) Command
(B) Motivation
(C) Control
(D) Supervision
(Ans: C)

7-Strategic plans are formulated by the:

(A) Low level managers
(B) Middle level managers
(C) Top level managers

(D) None of the above

(Ans: C)

8-The chief advantage of line and staff organisation is:

(A) Quick decisions
(B) Expert advice
(C) Centralisation of authority
(D) None of the above
(Ans: B)

9-An informal organisation:

(A) Is officially created
(B) Has formal authority relationship
(C) Is a result of interpersonal contacts
(D) None of these
(Ans: C)

10-The theory of leadership which believes that effective leadership is a

result of certain personal qualities is known as:

(A) Trait theory

(B) Follower theory
(C) Situation theory
(D) None of the above
(Ans: A)

11-Factor causing unethical conduct in business is:

(A) Fair competition
(B) Government policies
(C) Economic greed
(D) Increasing social values
(Ans: C)

12-What are the principles of office layout?

(A) Principles of effective supervision
(B) Principle of morale and loyalty
(C) Both (A) and (B)
(D) None of the above
(Ans: A)

13-What do Staffing functions include?

(A) Selection
(B) Training
(C) Development and appraisal of personnel
(D) All of the above
(Ans: D)

14-Statutory meeting of the shareholders of a public company is held:

(A) Only once during the life time
(B) Every 2 years
(C) Every 5 years
(D) Every 10 years
(Ans: A)

15-The notice for a general meeting of a company must be given at

least _____ before the meeting.
(A) 7 days
(B) 14 days

(C) 21 days
(D) 30 days
(Ans: B)

16-Underwriters means:
(A) They are writers
(B) Share brokers
(C) Who agree to take up securities which are not subscribed
(D) None of the above
(Ans: C)

1-Gross National Product equals:

(A) Net National Product adjusted for inflation
(B) Gross Domestic Product adjusted for inflation
(C) Gross Domestic Product plus net factor income from abroad
(D) Net National Product plus net factor income from abroad
(Ans: C)

2-Transfer payments are not included in national income because:

(A) they are included in the gross national income but not the net national income
(B) they are already included in the incomes of households
(C) they are not returns for the production of goods and services
(D) they are not taxed by the government
(Ans: C)

3-The difference between GNP and GDP is equal to:

(A) Gross Domestic Investment
(B) Net Foreign Investment
(C) Net Imports
(D) Net Factor Income from Abroad
(Ans: B)

4-Which one of the following gives the measures of price elasticity of demand?
(A) Ratio of change in demand to change in prices
(B) Ratio of change in price to change in demand
(C) Ratio of percentage change in demand to percentage change in price
(D) None of the above
(Ans: C)

5-Oligopoly is a market situation where:

(A) there are few firms producing close substitutes
(B) there are few firms producing entirely different goods
(C) there are few firms producing complementary goods
(D) there are two or more monopolistic firms
(Ans: D)

6-Which of the following is not a characteristic of Perfect Competition?

(A) Large number of buyers and sellers
(B) Perfect knowledge on the part of buyers and sellers
(C) Homogenous product
(D) Product differentiation
(Ans: D)

7-The value of money varies:

(A) directly with the interest rate
(B) directly with the price level
(C) inversely with the price level

(D) directly with the volume of employment

(Ans: C)

8-The most liquid asset, next to cash, which the banks possess, is:
(A) treasury bills
(B) money at call
(C) foreign bills
(D) cash credit
(Ans: A)

9-Theory of Mercantilism propagates:

(A) Encourage exports and imports
(B) Encourage exports and discourage imports
(C) Discourage exports and imports
(D) Discourage exports and encourage imports
(Ans:B)

10-Comparative cost advantage theory of trade is based on the assumption of:

(A) constant return to scale

(B) increasing return to scale

(C) decreasing return to scale
(D) constant and decreasing return to scale
(Ans: A)

11-Which one of the following is not an example of unilateral receipts/payments?

(A) Grants
(B) Gifts
(C) Royalties
(D) Pensions
(Ans: C)

12-Free trade is based on the principle of:

(A) comparative advantage
(B) comparative scale
(C) economies of advantage
(D) production possibility advantage
(Ans: A)

13-Accommodating transactions are also known as:

(A) below the line transactions
(B) above the line transactions
(C) voluntary transactions
(D) on the line transactions
(Ans: A)

14-The book Asian Drama is authored by:

(A) G. Myrdal
(B) R. Nurkse
(C) S. Kuznet
(D) M. Dobb
(Ans: A)

15-Economic development is best measured by:

(A) growth of GDP
(B) growth of per capita income
(C) growth with structural changes in economy
(D) growth with trickle down benefit in favour of poor

(Ans: A)
1-Organisation establishes relationship between
(A) People, work and resources
(B) Customer, work and resources
(C) People, work and management
(D) Customer, work and management
(Ans: A)

2-Organisation is a process of
(A) Identifying and grouping of work to be performed
(B) Defining and delegating the responsibility and authority
(C) Both A and B
(D) None of the above
(Ans: C)

3-Responsibility always flows from

(A) Superior to subordinate
(B) Subordinate to superior
(C) Both A and B

(D) None of the above

(Ans: B)

4-Authority always flows from

(A) Superior to subordinate
(B) Subordinate to superior
(C) Both A and B
(D) None of the above
(Ans: A)

5-No one on the organisation should have more than one boss is a statement of
(A) Principle of specialisation
(B) Principle of authority
(C) Principle of unity of command
(D) Principle of span of control
(Ans: C)

6-The number of persons which can be effectively supervised by a single

executive or departmental head should be limited to ___ in an average firm.

(A) Six
(B) Ten
(C) Fourteen
(D) Twenty
(Ans: A)

7-The following is not a principle of organisation

(A) Principle of exception
(B) Principle of balance
(C) Principle of complexity
(D) Principle of co-ordination
(Ans: C)

8-As per the principle of balance, there should be balance between

(A) The activities
(B) Authority and responsibility
(C) Standardisation of procedures and flexibility
(D) All of the above
(Ans: D)

9-The following is not a type of organisation structure

(A) Line organisation
(B) Functional organisation
(C) Line and staff organisation
(D) Flexible organisation
(Ans: D)

Q.1. The 58th meeting of NDC Held on___________?

(1) 07 December 2015
(2) 17 December 2014
(3) 27 December 2013
(4) 27 December 2012
(5) None of these

Q.2. Bank which is listed in the 2nd Schedule of the Reserve Bank of India Act, 1934
called__________.
(1) Payments Bank
(2) Scheduled bank
(3) Non-scheduled banks
(4) Both 1, 2 and 3
(5) None of these
Q.3. Public sector banks are ___________?
(1) Scheduled commercial banks
(2) Non-scheduled banks
(3) Payments Bank
(4) Both 1, 2 and 3
(5) None of these
Q.4. Term 'Cash Retraction' is mainly used in______?
(1) ATM's
(2) NEFT

(3) RTGS
(4) Both 2 and 3
(5) None of these
Q.5. In finance and economics, a monetary authority is the entity which controls
the__________?
(1) Bank working and its Functionality
(2) Money supply of a given currency
(3) Finincial institution
(4) Both 2 and 3
(5) None of these

Q.6. RBI runs a monetary museum, where is situated__?

(1) Karnataka
(2) Maharashtra
(3) Delhi
(4) Madhya Pradesh
(5) None of these
Q.7. RBI has launched a website to provides information about identifying fake currency.
(1) https://www.rbi.org.in
(2) https://paisaboltahai.rbi.org.in
(3) https://paisaboltahai.rbi.org.com
(4) https://www.rbi.org.com
(5) None of these
Q.8. The National Housing Bank (NHB) was established in ________?
(1) 1988
(2) 1935
(3) 2014
(4) 2012
(5) None of these

Answer Key:
1. 1
2. 2
3. 1
4. 1
5. 2
6. 2

7. 2
8. 1
Read more: http://www.meritmock.com/2016/07/important-banking-and-financial-awarenessquiz-for-sbi-and-ibps-exams.html#ixzz4HK1mUcaf

Prepare a resume assuming you have completed your post-graduation & have a
work experience of two years .
Write an application to a client regarding the due payment of last delivery of goods.