Professional Documents
Culture Documents
4.__________ is / are empowered to levy and collect income tax – Central Government
5. According to provisions of the act the borrowings of the company do not exceed total paid up capital
and free reserves
8.AT Co makes a single product and is preparing its material usage budget for next year. Each unit of
product requires 2kg of material, and 5,000 units of product are to be produced next year.
Opening inventory of material is budgeted to be 800 kg and AT co budgets to increase material inventory at
the end of next year by 20%
9.Which of the following jobs check accounting in ledgers and financial statements? Audit
10.In which year Income Tax was levied in India for the first time? 1860
11.A profit center is a center? - Where the manager has the responsibility of generating and maximising
profits
14.The ratio between cash in hand and total assets maintained by the banks is called SLR
16.The Principle of Scientific Management were more concerned with the problems of Operating Levels
17.During a period 17, 500 labour hours were worked at a standard cost of Rs 6.50 per hour. The labour
efficiency variance was Rs 7,800 favourable. How many standard hours were produced? 18,700
19.Goods sent by the head office to the branch but not received by the branch before the close of financial
year are credited by head office to Branch A/C
20.We should keep our savings with banks because
21.Borrowings which are are beyond the powers of the company is Ultravires Borrowings
24.When you have less amount of capital, which form do you prefer
I. Take a holiday
27.In case of ultra-vires borrowings, lender has the following remedy/remedies Injunction,
Subrogation,Restitution.
29.When is a company said to have been registered? When it gets the certificate of incorporation
30.A person is said to be an ordinarily Resident when the person is satisfying Both basic and additional
conditions
31.When the decisions of the business are taken by a single person, it is Sole Proprietorship/Autocratic
32.Which of the following is not a reason for an idle time variance? Wage Rate Increase
34.When a branch purchases fixed assets and the asset account is to be kept in the books of head office, the
branch makes the following entry. debits head office credits bank
35.When a group of lenders provides loan facility, then it is called as __________.Syndicated Loan
36.Which of the following describes the practical framework of bookkeeping? Classifying, Recording and
Summarising
37.Who is assessee in case of a HUF? KARTA
38.Cost Unit is defined as: (a) Unit of quantity of product, service or time in relation to which costs may
be ascertained or expressed
39.Efficiency is
40.Which of the following is not an India based credit rating agency Countrywide
42.The debentures, which are payable to the registered debenture holders is Registered Debentures______.
43.During September, 300 labour hours were worked for a total cost of Rs 4800. The variable overhead
expenditure variance was Rs 600 (A). Overheads are assumed to be related to direct labour hours of active
working. Rs.14
45.Effectiveness is
46.Depreciation on branch assets under debtor’s system is not shown separately in branch account
47.Which of the following companies must file a statement in lieu of prospectus? A public company that
has not issued a prospectus .
49.Which of the following principles assumes that a business will continue for a long time? Going Concern
50.The art of knowing what you want and see that they do it the best and cheapest way is Scientific
Management
51.Which of the following would explain an adverse variable production overhead efficiency variance?
54.Stock reserve in relation to closing stock appears On the debit side of the branch account.
55.Coins are issued by RBI
58.Fixed cost is a cost: Which do not change in total during a given period despise changes in output
62.Goods are sent to the branch at 20% margin on selling price. When branch stock discloses a surplus
of Rs. 2,000, the amount to be credited to branch adjustment account (above the line) will be
63.Budgeted sales of X for March are 18000 units. At the end of the production process for X, 10% of
production units are scrapped as defective. Opening inventories of X for March are budgeted to be 15000
units and closing inventories will be 11,400 units. All inventories of finished goods must have successfully
passed the quality control check. The production budget for X for March, in units is: 16,000
65.Which of the following users assesses the attractiveness of investing in a business? Financial Analyst.
69.Uncontrollable costs are the costs which be influenced by the action of a specified member of an
undertaking? Cannot Be
70.What are the exemption limit in Hostel Expenditure Allowance? 300 per month upto 2 children
73.CG Co manufactures a single product T. Budgeted production output of product T during June is 200
units. Each unit of product T requires 6 labour hours for completion and CG Co anticipates 20 per cent idle
time. Labour is paid at a rate of Rs7 per hour. The direct labour cost budget for March is 10,500
79.The number allotted by income tax authorities to assesses for identification and which should be quoted
in all documents and correspondence is PAN
81.A Local Authority is preparing cash Budget for its refuse disposal department. Which of the following
items would not be included in the cash budget? Depreciation on Machinery.
86.Accountants use Generally Accepted Accounting Principles (GAAP) to make the financial information
communicated
I. Relevant
II. Reliable
III. Comparable
IV. Profitable
87.BDL Ltd. is currently preparing its cash budget for the year to 31 March 2014. An extract from its sales
budget for the same year shows the following sales values.
Rs
March 60,000
April 70,000
May 55,000
June 65,000
40% of its sales are expected to be for cash. Of its credit sales, 70% are expected to pay in month after sale
and take a 2% discount. 27% are expected to pay in the second month after the sale, and the remaining 3%
are expected to be bad debts. The value of sales budget to be shown in the cash budget for May 2013 is
Rs.60,532
89.Under the income- tax act, the incidence of taxation depends on Residential Status of the tax payer.
99.The actual output of 162,500 units and actual fixed costs of Rs. 87000 were exactly as budgeted.
However, the actual expenditure of Rs 300,000 was Rs. 18,000 over budget. What was the budget variable
cost per unit? Rs. 1.20
100.Provision for unrealised profit with respect to stocks when transfers are affected at transfer price is to be
charged to General Profit and Loss A/c
101.How many heads of income are there to compute Gross total income. 5
103.One of the detailed rules used to record business transaction is Double entry book keeping
104.How many directors of a public company, unless the articles provide otherwise, must be appointed by
the company in general meeting? Two third.
106.Abnormal cost is the cost: Cost not normally incurred at a given level of Output.
110.The Board of Directors constitute the top administrative organ of the company.
112.A citizen of India who goes abroad for the purpose of employment, he must stay in India at least for
...............182......... days to become a resident.
113.Department which directly adds value to product or service is known as Production and Operating
department.
114.CA Co manufactures a single product and has drawn up the following flexed budget for the year.
Rs Rs Rs
What would be the total cost in a budget that is prepared at the 77% level of activity? 3,70,300
116.Persons responsible to maintain books is/ or MD,CFO and Whole time Director incharge of finance.
117.Who among the following may be “not ordinarily resident”? D. Hindu Undivided Family.
119.Copy of the financial statement is to be filed with registrar within 30 days of date of annual general
meeting.
122.Which of the following highlights the correct order of the stages in the accounting cycle? Journal,
Ledger, Trial Balance and Final Accounts.
124. MGNREGS stands for Mahatma Gandhi National Rural Employment Guarantee Scheme
129.Approaches to allocate costs of support department do not include Dual- Rate Cost-Allocation method
and single rate cost allocation method.
135.Describe the method of costing to be applied in case of Nursing Home: Operating cost
136.What will be the impact on the cash reserves of commercial banks if RBI conducts a sale of securities
Decrease
139.Which of the following companies has unlimited liability? Private firms- Sole Properitor and general
partnership
140.The following is not taxable as income under the head "Salaries". Remuneration received by a
partner
141.Describe the cost unit applicable to the Bicycle industry: Per Bicycle.
142.RBI provides Ways and Means Advances (WMA) to State govt or banks.
143.A ltd is a manufacturing company that has no production resource limitations for the foreseeable future.
The Managing Director has asked the company mangers to coordinate the preparation of their budgets for
the next financial year. In what order should the following budgets be prepared? 1,5,3,4,2
1. Sales budget
2. Cash budget
3. Production budget
4. Purchase budget
150.In the absence of an agreement profit and loss are divided by partners in the ratio of Equally.
152.Which of the following company must have at least one-woman director in their board? Listed
153.S produces and sells one product, P, for which the data are as follows:
Selling price Rs 28
Variable cost Rs 16
Fixed cost Rs 4.
The fixed costs are based on a budgeted production and sales level of 25,000 units for the next period. Due
to market changes both the selling price and the variable cost are expected to increase above the budgeted
level in the next period. If the selling price and variable cost per unit increase by 10% and 8% respectively,
by how much must
sales volume change, compared with the original budgeted level, in order to achieve the original
budgeted profit for the period?
154.DIN represents Director Identification Number.
155.The periodic payment of money for the past service is known as Pension
156.The Trading and Profit and Loss account is also called Income Statement
159.In process costing, a joint product is a product which is produced simultaneously with other
163.When the rate of inflation increases, then Purchasing power of money Reduces
164.Process B had no opening inventory. 13,500 units of raw material were transferred in at Rs 4.50 per
unit. Additional material at Rs 1.25 per unit was added in process. Labour and over heads were Rs 6.25
per completed unit and Rs 2.50 per unit incomplete.
If 11,750 completed units were transferred out,what was the closing inventory in Process B? Rs. 14,437.50
165. In the absence of an agreement, Interest on loan advanced by the partner to the firm is allowed at the
rate of 6%
166.
168.Salary received by a partner from the firm in which he is a partner is taxable under the head Profits and
gains of business or profession
169.Current accounts of the partners should be opened when the capitals are Fixed.
174.A process costing system for J Co used an input of 3,500Kg of materials at Rs20 per Kg and labour
hours of 2,750 at Rs25 per hour. Normal loss is 20% and losses can be sold at a scrap value of Rs5per Kg.
Output was 2,950 Kg. What is the value of the output? Rs 142,485 175.NEFT means National Electronic
Funds Transfer.
177.Family pension received by the widow of a deceased employee is taxable under the head Income From
Other Sources
180.Salary received by a Member of Parliament is taxable under the head Income from other sources.
181.In how many languages, the amount of a bank note is written on it? 17 out of 22
183.When can a private company commence business? After Receiving Certificate of Incorporation
187.In process costing, if an abnormal loss arises, the process account is generally
Credited with the full production cost of the abnormal loss unit
1. A materials requisition note is used to record the issue of direct material to a specific job.
2. A typical job cost will contain actual costs for material, labour and production overheads, and non –
production overheads are often added as a percentage of total production cost
1 & 3 only
196.Which financial statement is used to show what the firm owns? Balance Sheet.
197.A job is budgeted to require 3,300 productive hours after incurring 25% idle time. If the total labour
cost budgeted for the job is Rs 36,300. What is the labour cost per hour( to the nearest cent)? 8.25
201.What is the full form of SWIFT? Society for Worldwide Interbank Financial Telecommunication.
203.What is the maximum period within which a customer can approach ombudsman?
204.The income tax rate on long term capital gains for an individual is 20%
205.A company calculates the prices of jobs by adding overheads to the prime cost and adding 30% to total
costs as a profit margin. Job number Y256 was sold for Rs1690 and incurred overheads of Rs 694. What
was the prime cost of the job? Rs. 606206.Any partner who investments in the business but does not take
active part in the business is
209.The place where bankers met and settle their claims and account is known as Clearing House.
Ans-2,80,000
213.The minimum subscription is to be received within 120 days of the offer.
214.As per the first basic condition to determine residential status, a person should have been in India during
the previous year concerned for 182 days or more
216.According to accounting equation assets are equal to? Liabilities and Equity.
224. A private company is to become a public company if its average turnover in the previous three years
exceeds 10 Crore
225. An individual who wants to be resident of India must satisfy at least One of the two basic conditions
226. The desire to become more and more than what one is
227. As per Second additional condition, a resident will be an ordinarily resident if stay in India for at least
730 days during the seven previous years preceding the relevant .
228.What is the maximum amount for which the Award can be given by Ombudsman
229. The cost concept states that all goods and services purchased should be recorded at historical and
market cost
230. Which of the following organisations should not be advised to use service costing A light engineering
Company.
233. A person is Non resident if he fails to fulfil At least one of the basic conditions
234. A Person ceases to be a company members when his shares are forfeited for nonpayment of call
monies
237. Which of these is not a Material control technique: Maintaining Stores Ledger.
238.Salary paid by an Indian company to its employees working in one of its branches outside India is
Salary Accuring in India.
239. Calculate the most appropriate unit cost for a distribution division of a multinational company using
the following information.
Milestravelled 636,500
Tonnescarried 2,479
Numberof drivers 20
Tonnesmilescarried 375,200
Costincurred 562,800
240. The Statement that shows the cause of change in the financial position of an organization is known as
Statement of Financial Position
243.Which of the following are characteristics of a company ? It exists only in contemplation of law
246. Out of the following, what is not the work of purchase department:
252. On a share of Rs. 100 of a company, a shareholder has already paid Rs. 30.His Liability is now limited
to 70
253. The following information is available for the W hotel for the latest thirty day period.
The room servicing cost per occupied room-night last period, to the nearest Rs, was: 5
254. Past un-taxed income brought to India is taxable in the hands of None of these
259. A private company becomes a public by process of law where not less than 25 percent of its paid-up
share capital is held by one or more bodies corporate.
261. Bin Card is a Quantitative record of material received, issued and balance
262. Revenue
263. The liability of a shareholder in a company limited by shares is limited to the unpaid value of shares
subscribed by him.
265. A company makes a single product and incurs fixed costs of Rs. 30,000 per annum. Variable cost per
unit is Rs. 5 and each unit sells for Rs. 15. Annual sales demand is 7,000 units. The breakeven point 3000
units
266. Incomes on which Income tax is not charged are called Excempted Incomes
269. A company manufactures a single product for which cost and selling price data are as follows: Selling
price per unit - Rs. 12
271. Time gap between two annual general meeting should not exceed 15 months.
276. The first AGM should be conducted within 18 months from the date of incorporation.
Budgeted production and sales for the year are 10,000 units.
283. Who is the present Union Finance Minister of India? Arun Jaitley
286. Aadhaar is
287. Re-order level is calculated as: Maximum consumption x Maximum re-order period
288. The cash flow statement consists of which of the following sections?
289. Allowances received by a government employee posted abroad are Fully Excempted.
290. Persons authorized to convene extra-ordinary general meeting is BOD, The Board on Requisition of
Members, Tribunal
292. Which of the following limits the power of credit creation by Commercial Bank
294. What are the contents of the notice of AGM? Place, Date and Hour, Statement of the business to be
transacted.
Budgeted production and sales for the year are 10,000 units.
How many units must be sold if company wants to achieve a profit of Rs. 11,000 for the year? 13,409.
299. The merger of _________and ________was the first M and A activity after liberalization
300. Economic order quantity is that quantity at which cost of holding and carrying inventory is Minimized
302 Richard Cantillon applied the word entrepreneur to business for the first time.
303. The memorandum and Articles of a company are open to inspection by Everybody.
305. A letter of acceptance sufficiently stamped a duly addressed is put into course of transmission. There is
____________
310. _______________ is the people who create the products and services that sellers offer to buyers
Budgeted production and sales for the year are 10,000 units.
It is now expected that the variable production cost per unit and the selling price per unit will each increase
by 10%, and fixed production cost will rise by 25%. What will be the new break even point? 11,885
313. Acceptance may be revoked by the acceptor before the communication of acceptance is complete.
316. A company's break even point is 6,000 units per annum. The selling price is Rs. 90 per unit and the
variable cost is Rs. 40 per unit. What are the company's annual fixed costs? 3,00,000
320. Fabian entrepreneurs neither introduce new changes nor adopt new methods innovated by others
325. On the face of the ticket for a journey the words for conditions see back are printed in a small print.
The passenger is bound by the conditions whether he takes care to read them or not
331.Entertainment allowance to govt. employees is exempted, which is least of 20% of basic salary or actual
allowance or 5000
341.The value of Interest free concessional loans to employees is determined on the basis of lending rates
of ..................... for the same purpose
342. _________ e-commerce model provides a way for consumers to sell to each other
343.After inviting tenders for supply of raw materials, two quotations are received as follows—
Supplier P Rs. 2.20 per unit, Supplier Q Rs. 2.10 per unit plus Rs. 2,000 fixed charges irrespective of the
units ordered. The order quantity for which the purchase price per unit will be the same—
345.The Capacity to develop new ideas, concepts and processes is known as:
347.Value of rent free accommodation in case of Govt. employee shall be taxable up to License fee fixed by
the Govt
348.A cost that does not affect a decision is called an Irrelevant Cost
349.In case of rising prices (inflation), LIFO will Provide lowest value of Closing stock and profit
356. In case of joint products, the main objective of accounting of the cost is to apportion the joint costs
incurred up to the split off point. For cost apportionment one company has chosen Physical Quantity
Method. Three joint products ‘A’, ‘B’ and ‘C’ are produced in the same process. Up to the point of split off
the total production of A, B and C is 60,000 kg, out of which ‘A’ produces 30,000 kg and joint costs are Rs.
3,60,000. Joint costs allocated to product A is
357.EDI is the computer-to-computer exchange of Data/Information
358. A transport company is running five buses between two towns, which are 50 kms apart. Seating
capacity of each bus is 50 passengers. Actually passengers carried by each bus were 75% of seating
capacity. All buses ran on all days of the month. Each bus made one round trip per day. Passenger kms are:
359. When the promisee refuses to accept performance from the promisor who offers to perform, it is
360. Salary paid to partner should be
361. The entrepreneur who does not change the method of production already introduced us: Drone
Entrepreneurs
362. Interest on RPF balance is exempted up to 9.5%
363. Consumer Surplus is described as Difference Between what customers are Willing and able to pay
364. A fall in the price of a commodity leads to a fall in consumers real Income/ Shift in Demand
365. Calculate Re-order level from the following
Consumption per week: 100-200 units
Delivery period: 14-28 days Ans:800 units
366. Person who works within an organization and having entrepreneurial capabilities is Intrapreneur
367. Employers contribution to RPF is exempted up to Rs.1,50,000 or 12% of Salary.
368. Interest on capital Account
369. When a party to a contract transfers his contractual rights to another, it is known as Assignment.
370. Commuted value of pension is fully exempted in case of Government Employees
371. The cost per unit of a product manufactured in a factory amounts to Rs. 160 (75% variable) when the
production is 10,000 units. When production increases by 25%, the cost of production will be Rs. per unit.
372. If a contract contains an undertaking to perform impossibility, the contract is Void ab initio.
373. Digital signatures means certain types of Encryption to ensure Authentication
374. Which of the following describes a record of the transactions?
375. Who introduced the term intrapreneur: . Gifford Pinchot III
376. A micro enterprise is one in which the investment in plant and machinery does not exceed Rs. 25 Lakh
377. An agreement to do an act impossible in itself. Void
378. _____________________have increasing concerns about the security of their networks .
379. In ‘make or buy’ decision, it is profitable to buy from outside only when the supplier’s price is below
the firm’s own Variable Costs
380. At the time of admission of a new partner the firm is
403. S and P go into a shop. S says to the shopkeeper, C let P have the goods, and if he does not pay you, I
will. This is a Contract of guarantee.
404. Provisional Registration helps the entrepreneur to take necessary steps to bring industrial units into
existence.
405. An e-business must protect itself against Unauthorized Access to computer network
406. A bailer is a _________
407.Cash Budget is a detailed budget of cash receipts and cash expenditure incorporating both revenue and
capital items
408. Value of good will agreed upon Rs. 30000 on C,S admission and allowing him ¼ share of total profit
Good will is brought in cash, the amount of good-will be as
409. Deduction for other expenses except interest in the computation of income from house property is
allowable to the extent of 30% of NAV
410. Cross elasticity demand between two perfect substitutes will be Very High
411. The MSME Development ACT came into force in 2006
412. Bad debts allowed earlier and recovered latter on is
413. Capital investment subsidy was introduced in the year 2007/1971
414. The position of a finder of lost goods is that of a Bailee.
415. Viruses are generally introduced into a computer system via Email or Unauthorized Access.
416. In which order does the journal list transactions? Chronological Order
417. Which of these is not an objective of Cost Accounting? Assisting Shareholders in Decision Making
418. Goodwill of the firm is valued Rs. 30,000. C an incoming partner purchase ¼ share of total profit Good
will be raised in the books
419. When price rises, the quantity supplied; Increases
420. In a sale, the property in goods, transferred from seller to buyer.
421. Under valuation of opening stock is opening stocks are not valued at cost price.
422. Statutory cost audit are applicable only to: Company
423. Incentive is the financial and promotional assistance provided by the Govt. to the industries for
boosting up industrial development in all regions particularly in backward areas.
424. In a sale, if the goods are destroyed, the loss falls on Seller.
425. An incoming partner pays his share of good will in cash, and profit sharing ration of old partner is
changed, Goodwill be distributed among old partners
426. For the financial year ended as on March 31, 2013 the figures extracted from the balance sheet
of Xerox Limited as under:
Opening Stock Rs. 29,000; Purchases Rs. 2,42,000; Sales Rs. 3,20,000; Gross Profit 25% of Sales. Stock
Turnover Ratio will be :-
427. If the income elasticity of demand is greater than 1, the commodity is Luxury or Superior Goods
428. An Industrial Estate is the place where the required facilities and factory accommodating are
provided by the government to the entrepreneurs to establish their industries there.
429. Under section 44AB the audit of accounts is compulsory if total sales exceed 1 Crore
430. The initial capital that is required to obtain loans from the financial institutions is called Seed Capital
431. In accounting consignment means Sending Goods to another Person, by owner for sale.
432. An e-business should put in place an effective risk management program such as Antivirus Protection
and firewall, Intruder Deduction.
433. Gifts from clients are Professional Income.
434. If credit sales for the year is Rs. 5,40,000 and Debtors at the end of year is Rs. 90,000 the Average
Collection Period will be
435. The term property as used in the Sale of Goods Act, 1930 means Ownership
436. In case of perfectly elastic supply the supply curve will be; Infinite
437. If a depreciable asset is acquired and used for less than 180 days in a financial year, depreciation
allowed on it is 50% of normal rate.
438. The summarized balance sheet of Rakesh udyog Limited shows the balances of previous and current
year of provision for taxation Rs. 50,000 and Rs. 65,000. If taxed paid during the current year amounted to
Rs. 70,000 then amount charge from Profit and Loss Account will be:
439. The doctrine of caveat-emptor applies In case of implied conditions and warranty.
440. Under the single roof of the DIC ( District Industries Centre) all the services and support required by
small and village entrepreneurs are provided.
441. At the time of admission of a new partner, general reserve is transferred to old partners capital a/c in
old ration.
442. A micro manufacturing enterprise is one in which the investment in plant and machinery doesnot
exceed 25 Lakhs
443. If a sale is by sample as well as by description, the implied condition is that the goods shall correspond
with both by sample and description.
444. The summarized balance sheet of Auto light Limited shows the balances of previous and current year
of retained earnings Rs. 25,000 and Rs. 35,000. If dividend paid during the current year amounted to Rs.
5,000 then profit earned during the year will be:
445. In the typical demand schedule, quantity demanded Varies Inversely with Price
446. To be a long term capital asset, a non financial asset should be held more than 36 Months
447. A new partner may be admitted to partnership with the consent of old partners.
448. In a sale, there is an implied condition on the part of the seller that he has right to sell it.
449. Goods sent on consignment should be debited by consignor to: Consignment A/c
450. The total number of items that the company carries within its product lines refers to the of the product
mix. Length
451. At the point where a straight line from the origin is tangent to the variable cost curve average cost is
equal to marginal cost
452. Following information is available of XYZ Limited for quarter ended June, 2013
Fixed cost Rs. 5,00,000
Variable cost Rs. 10 per unit
Selling price Rs. 15 per unit
Output level 1,50,000 units
What will be amount of profit earned during the quarter using the marginal costing technique?
453. Shares held for less than 12 months are Short term Capital Assets
454. An e-business should put in place an effective risk management program such as Antivirus
455. The P/v ratio of a company is 50% and margin of safety is 40%. If present sales is Rs. 30,00,000 then
Break Even Point in Rs. will be
456. House property held for less than 36 months is
457. A bonus or financial aid which is given by a govt. to an industry to help it compete with
other units in home market or in a foreign market is known as Bounties.
458. In the books of consignor the balance of the consignment stock account would be shown: As an asset
in the balance sheet.
459. A condition is a stipulation which is a stipulation essential to the Contract.
460. At the time of admission of a new partner, goodwill will
461. In case of breach of a warranty, the buyer can file a suit for damages only.
462. Following information is available of PQR for year ended March, 2013: 4,000 units in process,
3,800 units output, 10% of input is normal wastage, Rs. 2.50 per unit is scrap value and Rs. 46,000 incurred
towards total process cost then amount on account of abnormal gain to be transferred to Costing P&L will
be:-
463. The use of price points for reference to different levels of quality for a company's related products is
typical of which product-mix pricing strategy? Product Line Pricing
464. Indexation is applicable to Long term Capital Gains
465.When a percentage change in price results in equal change in quantity supplied, it is called; Unitary
Demand
466. Gives the buyer only a right to claim damages is known as Condition.
467. Costs which increase with an increase in output are called Variable Costs
468. What is the date on which Fair Market Value of capital assets acquired is determined?
469.Single window scheme is instituted through…………………………
470. In element-wise classification of overheads, which one of the following is not included —
471. In the revaluation account a decrease in the value of plant and machinery
472. Share allotment is a Process of Allotting Shares
473. FMV on 1.4.81 is applicable to assets.......................
474. Which of the following information forms available to the marketing manager can usually be accessed
more quickly and cheaply than other information sources? Internal databases
475. Where both the parties to an agreement are under a mistake as a matter of fact essential to the
agreement, the agreement is... Void
476. The basic step to develop the E-Commerce companies____________-
477 On the dispatch of goods, the entry in the books of consignee would be: No Entry
478. A demand schedule shows the relationship between the quantity demanded of a commodity over a
given period of time and -----------
479 Exemption u/s 54 is allowed when a residential house is sold and the investment is made in Residential
House Property
480. Calculate the value of closing stock from the following according to FIFO method:
1st January, 2014: Opening balance: 50 units @ Rs. 4
Receipts
5th January, 2014: 100 units @ Rs. 5
12th January, 2014: 200 units @ Rs. 4.50
Issues
501. All of the following are considered to be drawbacks of local marketing EXCEPT :
502. The term A/c and sale A/c are ________________ in nature.
503. Which one of the following is not an income from other sources? Profit on Sale of BUilding
504. Premium received on issue of shares A/c is shown on: Liabilities side of Balance Sheet
505. Using a successful brand name to introduce additional items in a given product category under the same
brand name (such as new flavors, forms, colors, added ingredients, or package sizes) is called an(n):
506. The internal audit function is least effective when the department:
507. When supply of a commodity decreases on a fall in its price, it is called;
508. Major Legal and Ethical Issues in E-Commerce_____________-
509. Under the _____________, both internal and external corporate governance mechanisms are intended
to induce managerial actions that maximize profit and shareholder value.
510. …………………… provides consultancy services to small and medium enterprises at reasonable cost
511. Dividends from co-operative society are Taxable/ Non Taxable
512. The premium on issue of shares can be used for: Write off Expenses or Commission paid or
Discount Allowed on an issue of share or debentures of the company
513. Revaluation account is operated to find out gain or loss at the time of Admission or Retirement or
Death of Partner
514. The rate of discount on shares cannot exceed: 10%
515. Rate of T.D.S for unlisted securities, including cesses is 10%
516. The Average Total Cost curve will be cut by the Marginal Cost curve from below as long as Marginal
costs eventually increase
517. Successful service companies focus their attention on both their customers and their employees. They
understand, which links service firm profits with employee and customer satisfaction service-profit chains
518. Partners equity is affected due to
519. One of the objectives of the Sarbanes-Oxley Act was to:
520. Is quoted as saying that "everyone lives by selling something
521. Which of the following gives the measures of price elasticity of demand?
522. Speculation Loss can be carried forward for 4Years
523. Increase the compliance burden for small companies...
524. Discount on issue of shares A/c is shown on: Asset side of B/S
525.Consignee A/c is the nature of:
526. Discount on issue of shares is a: Capital Loss
527. An independent director is one who:
528. The Head Office of KINFRA is located at Thiruvananthapuram
529. The accounting procedure at the retirement of partner is valued
530. “Any criminal activity that uses a computer either as an instrumentality, target or a means for
perpetuating further crimes comes within the ambit of cyber crime”
531. A partnership firm sold a residential house. The firm will get exemption under section 54F on capital
gains.
532. The supply of a good refers to:
533. Calculate the value of closing stock from the following according to LIFO method:
1st January, 2014: Opening balance: 50 units @ Rs. 4
Receipts:
5th January, 2014: 100 units @ Rs. 5
12th January, 2014: 200 units @ Rs. 4.50
Issues:
2nd January, 2014: 30 units
18th January, 2014: 150 units Ans Rs. 805
534. The chairperson of the board of directors and CEO should be leaders with:
535. Normal losses are due to: incurred in recurring basis
536. Cognitive dissonance occurs in which stage of the buyer decision process model?
537. Which of the following is eligible for 100% deduction ? National Sports Fund.
538. A board that is elected in a classified system is known as a: Staggered Board
539. Education cess for the A.Y is 3%
540. Anything that can be offered to a market for attention, acquisition, use, or consumption that might
satisfy a want or need is called an(n):
541. Interest on calls paid in advance has to be paid @:
542. If the remaining partner want to continue the business, after the retirement of a partner, a new
partnership agreement
543. The assumption we usually make about all firms is that they wish to
544. An account operated to ascertain the loss or gain at the death of a partner is called
545. What is meant by the phrase ‘teleolo!ical ethics’?
546. Donation is deductible u/s 80G
547. Interest @............. is charged on calls-in-arrears according to Table ‘A’ of the Companies Act:
548. Project refers to any investment opportunity which is to be exploited for profit
549. Cross elasticity of demand between two substitutes will be-------------
550. The shutdown condition for a firm is to
551. 1. That the company that overlooks new and better ways to do things will eventually lose customers
to another company that has found a better way of serving customer needs is a major tenet of:
552. What is meant by the phrase CSR? Corporate Social Responsibility
553. The main object of providing depreciation is: Create funds for replacement of fixed assets
554. When shares are forfeited, the share capital a/c is debited by:
555. Contribution to RPF is deducted u/s 80C
556. The type of sales presentation approach that requires good listening and problem- solving skills is the
Need-satisfaction approach
557. Calculate the value of closing stock from the following according to Weighted Average method:
Closing Stock- 743.75
1st January, 2014: Opening balance: 50 units @ Rs. 4
Receipts:
5th January, 2014: 100 units @ Rs. 5
12th January, 2014: 200 units @ Rs. 4.50
Issues:
2nd January, 2014: 30 units
18th January, 2014: 150 units Ans: Rs. 786
558. Depreciation arises because of: Physical wear and tear.
559. For Karl Marx where do our values come from? They are a product of the economic system
within which we live
560.Donation on PM’s National Relief Fund is deductible 100% out of the gross total income of the
assessee, under section 80G
561. Commodities which are perishable in nature have Perfectly Inelastic supply.
562. W h a t d o e s M i l t o n F r i e d m a n b e l i e v e t o b e t h e s o l e r e s p o n s i b i l i t y
o f business?
563 Amount due to outgoing partner is shown in the balance sheet as his
564. Project Identification the process of collection, compilation and analysis of economic data for the
purpose of finding out possible opportunities for investment.
565. Provision for income tax is shown in the bank accounts under the head:
566. If the firm has no competitors, the marginal revenue curve is Downward sloping
567. The maximum amount of deduction under section 80D in the case of a senior citizen is Rs.30,000-
50,000.
568. The rent fixed as per municipal valuation is called ............................
569. The production function represents;
570. W h a t , a c c o r d i n g t o A d a m S m i t h , i s t h e b e s t w a y t o p r o m o t e c o l l e c t i v e interest?
571. The loss or gain an account of revaluation at the time of retirement of a partner is shared by
572. The profit on re-issue of forfeited shares is transferred to:
573. Yahoo, Info seek, and Excite are all called Search Engines
574. Depreciation is a process of: of allocation,
575. The biggest or greatest amount of involvement in a foreign market comes through which of the
following? Direct investment
576. Any some received under key man insurance policy taken on the life of the employee shall be
577. From society's point of view the economic function of profits and losses is to Relocate Resources
578. The heading other assets does not include:
579. Income tax is a form of Direct tax
580. On the retirement of a partner any reserve should be transferred to the capital account of
581. Successfully depends on how well a company blends its people, organizational structure, decision and
reward systems, and company culture into a cohesive program that supports its strategies.
582. Cost of abnormal wastage is: Charged to the profit & loss account
583. It is the difference between total revenue and total economic cost Economic Profit
584. For Maximisation of profit in the short run, the condition is MC=MR
585. Under the straight line method of providing depreciation it:
586. If a share of Rs. 10, on which Rs. 8 has been called and Rs. 5 has been received is forfeited share
capital A/c, in this case, will be debited with:
587. A is a good offered either free or at low cost as an incentive to buy a product patronage reward
588. Section C applies on ...................
589. Wal-Mart owned Sam's club is an example of a retail form called an(n):
590.Diminishing marginal return occur when the total production function is;
591.Which of the following is not a capital asset?
592.Rights shares are those shares which are: issue of rights to a company's existing shareholders
593. Retirement or death of a partner
594. If all the partners, but one are insolvent it is
595. The process of evaluating the project ideas with a view to select the best and promising idea after
eliminating the unprofitable ideas is called Screening Of the project ideas.
596. A firm’s marginal revenue Additional Revenue
597. Demand drafts and Telegraphic transfers are shown in the Bank accounts under the head:
598. The difference between subscribed capital and called-up capital is called: Unsubscribed Capital
599. is the general term for a buying and selling process that is supported by electronic means Electronic
Commerce
600. Which of the following is considered production in economics
601. If all the partners, but one, is solvent it is Dissolution of a firm
602. Setting call objectives is done during which of the following stages of the selling process? Pre-
Approach
603. Under the fixed instalment method of providing depreciation it is calculated on:
604 The discrepancy between the values of marginal product and marginal revenue product of a factor of
production cannot arise if
605. Goodwill is: Intangible
606. The amount of depreciation charged on machinery will be debited to: Depreciation Account
607. Calculate re-order level from the following:
Safety stock: 1000 units
It takes 12 weeks to reach material from the date of
ordering Ans: 7000 units
608. Constant returns to scale refers to firm changes their inputs
609. Project formulation means process is a collection of interrelated actions and activities Study.
610. At the time of dissolution
611. When a company enters a new product category for which its current brand names are not appropriate,
it will likely follow which of the following brand strategies?
612. Goodwill is shown in company’s balance sheet under the head: Fixed Assets
613. The level of activity at which total revenues equal total costs is the Break Even Point
614. Loss on sale of plant and machinery should be written off against: Depreciation fund account
615. Perfect competition occurs in a market where there are many firms each selling an identical product.
616. Letter of Credit and Endorsement are shown in the Bank accounts under the head:
617. Pricing to cover variable costs and some fixed costs, as in the case of some automobile distributorships
that sell below total costs, is typical of which of the following pricing objectives?
618. When quantities of all factors of production are increased to study the output it is known as;
619. At the time of dissolution non – cash assets are credited with Book value
620. The value of goodwill according to the simple profit method is:
621. Input Analysis is primarily concerned with the identification, quantification andevaluation
of project resources
622. Joint venture account is
623. Online ads or Online advertisements are ads that appear while subscribers are surfing online services
or Web sites, including banners, pop-up windows, "tickers," and "roadblocks."
624. The break-even point is where TR=TC
625. Super profit is the difference between: average profits and normal profits.
626. Which one of the following does NOT occur in perfect competition?
627. If a partner takes over an asset of the firm, his capital account
628. Building acquired in satisfications of a claim and interest accrued but not due on investments are shown
in the Banks Balance sheet under the head:
629. In determining sales force size, when a company groups accounts into different size classes and then
determines the number of salespeople needed to call on them the desired number of times, it is called the:
630. In terms of special product life cycles, a is a basic and distinctive mode of expression style.
631. In which stage of production would a rational producer like to operate;
632. which of the following is true when a debtor pays his dues?
633. The average return of similar concerns should be considered as:
634. Which of the following are limitations of break-even analysis?
635. In General Insurance, the policy amount is payable:
636. Loss on realization is distributed among partners
637. ……………………………… technology refers to that technology which is suitable to
local, economic, social and cultural conditions.
638. Is products bought by individuals and organizations for further processing or for use in conducting a
business.
639. In perfect competition, a firm's marginal revenue equals its ______
640. Loss on realization is
641. From the point of view of valuation of goodwill, the term ‘capital employed’ means the funds provided
by:
642. For calculating price-earnings ratio, it is essential to know Price Per share and Earnings per share
643. Loss on machinery will be
644. There are various methods to reduce cost of production, except
645. Is a principle of enlightened marketing that requires that a company seek real product and marketing
improvements
646. The process of providing financial information to external decision makers is referred to as: Financial
Accounting
647. An isoquant represents
648. The average capital employed can be ascertained:
649. All of the following would be ways to segment within the category of psychographic
segmentation EXCEPT
650. When all partners are insolvent creditors will be will be paid after the expenses of realisation are
met
651. Under Net assets method, the value of a share depends on the amount that would be available to
652. The break even point is obtained at intersection of Total Revenue/ Sales and Total Cost
653. ………………………… is a network technique of scheduling and controlling the project where
activity times cannot be precisely estimated.
654. The law of variable proportion is first explained by;
655. Many U.S. firms have sought relief from foreign competition by demanding protectionism policies by
the U.S. government. A better way for companies to compete is to expand into foreign markets and:
656. Depreciation is charged on
657. In life insurance, the policy amount is payable
658. Financial statements generally include all but which of the following:
659. From the following information, calculate the extra cost of material by following EOQ:
Annual consumption: = 45000 units
Ordering cost per order: = Rs. 10
Carrying cost per unit per annum: = Rs. 10
Purchase price per unit = Rs. 50
Re-order quantity at present = 45000 units
There is discount of 10% per unit in case of purchase of 45000 units in bulk. Ans: Rs. 2,990
660. There is a person within a reference group who, because of special skills, knowledge, personality, or
other characteristics, exerts influence on others
661. Contribution per unit is equal to Contribution / No of Units
662. One difference between perfect competition and monopolistic competition is that ______
663. is the process of evaluating each market segment's attractiveness and selecting one or more segments to
enter.
664. Mines quarries oil fields and forest are example of Natural Resources/ Depletion Asset
665. A business had a capital of Rs. 80,000 at the end. It had earned profits of 10,000 during the year. The
average capital employed of the business will be:
666.The MRTS L,K
667.For calculating the value of equity share by intrinsic value method, it is essential to know:
668. The primary objective of the matching principle is to: Recognize expenses in the same period as the
related revenue.
669. The stage is the product life cycle that focuses on expanding market and creating product awareness
and trial is the: Introduction stage.
670. Which of the following is an abnormal cause of Idle time: Time lost between the finish of one job
and starting of next job
671.To achieve more market power, firms can
672. Describes changes in an individual's behaviour arising from experience Learning
673. The persons who have entered into a partnership business are individually called Partners
674. Depletion applies to Mines quarries oil fields and forest
675. Under which type of market structure is price rigidity (stickiness) often predicted? Oligopolistic
Market
676. It is a fact that there are 24 million left-handed people in the United States, however, most marketers do
not attempt to appeal to or design products for this group because there is little in the way of census data
about this group. Therefore, this group fails in one of the requirements for effective segmentation. Which of
the following is most likely to apply in this case? measurable
677. The bonus which is to be paid on maturity of the policy along with the policy amount it known as:
maturity benefit
678. Under Assets- Backing method, the values of equity share is calculated under the presumption that the
company would be valued on the basis of real internal value of the assets of the company
679. Which of the following is not an asset?
680. Which of the following promotional budget methods wrongly views sales as the cause of promotion
rather than as the result?
681. The rate at which one input can be exchanged for another input without altering the level of output is
called the; marginal rate of technical substitution.
682. The commission received from the re-insurer is called:
683. The fact that services are sold, produced, and consumed at the same time refers to which of the
following service characteristics? Inseparability
684. If no provision is made in agreement regarding the duration of the partnership
685. Which two of the following assumptions apply to 'kinked-demand' analysis in oligopoly markets?
686. If overtime is resorted to at the desire of the customer, then the overtime premium: should be charged
to the job directly
687. Process of becoming out of date or obsolete is termed as: Obsolescence
688. Concerns that the manufacturers of harmful products such as tobacco have influence on lawmakers to
the detriment of the public interest is used as evidence of which criticism of marketing Too much political
power
689. When isoquants are convex to the origin;
690. For calculating the value of an equity share by yield method, it is essential to know: Normal Profit
and Capital Employed
691. Factors are the most popular bases for segmenting customer groups Demographic.
692. Which of the following represents purchases?
693. Which of the following does not cause a shift in the demand curve?
694. If the field sales force has been supplied with new leads (via the telephone) that have been qualified,
they have probably been assisted by: Telemarketers.
695. Under the yield method, the value of equity share is calculated on the presumption that the company
would be a going concern
696. New product pricing strategy through which companies set lower prices to gain large market share is
classified as penetration pricing
697. A person who declares by word of mouth as partner of the firm is called Holding Out Partner
(Estoppels partner)
793. Calculate the labour turnover rate according to replacement method from the following: No. of
workers on the payroll:
- At the beginning of the month: 500
- At the end of the month: 600
During the month, 5 workers left, 20 workers were discharged and 75 workers were recruited. Of
these,10 workers were recruited in the vacancies of those leaving and while the rest were engaged for an
expansion scheme. Ans: 1.8181.
794. When good will is brought in cash by new partner, such a method is known as Premium Method
795. Bills were discounted to the extent of Rs. 10,000 of which bills of Rs. 4,000 are likely to be
dishonoured. Hence, the liability to rank in respect of these bills will be
796. According to the price/quality strategy matrix, when a company overprices its product in relation to its
quality it is considered to be using which type of strategy? Overcharging strategy
797. An alternative name for Sales Journal is Sales Day Book
798. . Includes practices such as overstating the product's features or performance, luring the customer to the
store for a bargain that is out of stock, or running rigged contests. Deceptive promotion
799. Expenses of management (not applicable to any particular business) are:
800. Section 37 of partnership act provided interest on the amount left by retiring or deceased partner at
801. When the sale proceeds of pledged security is not sufficient to pay off secured creditors fully, the
balance due to them should be added to
802. Which of the following is not one of the four basis financial statements?
803. Activities lying on the critical path are known as……………………..activities.
804. Is the practice of adopting policies and developing strategies that both sustain the environment and
produce profits for the company Environmental sustainability
805. A Pass Book is a copy of:
806. Calculate the labour turnover rate according to Separation method from the following: No. of
workers on the payroll: Ans: 4.5454
- At the beginning of the month: 500
- At the end of the month: 600
During the month, 5 workers left, 20 workers were discharged and 75 workers were recruited. Of these,
10 workers were recruited in the vacancies of those leaving and while the rest were engaged for an
expansion scheme.
807. Legal fees in respect of claims is:
808. When a partner dies, the firm will receive
809. The orange juice manufacturers know that orange juice is most often consumed in the mornings.
However, they would like to change this and make the drink acceptable during other time periods during the
day. Which form of segmentation would they need to work with and establish strategy reflective of their
desires? Occasion segmentation
810. A worker is allowed 60 hours to complete the job on a guaranteed wage of Rs. 10 per hour. Under
the Rowan Plan, hegets an hourly wage of Rs. 12 per hour. For the same saving in time, how much he
will get under the Halsey Plan?
811. Consistency and feedback relate most closely to which two of the following accounting concepts,
respectively?
812. Push strategy.is a promotion strategy that calls for using the sales force and trade promotion to move
the product through channels.
813. When the liquidated company has adequate cash to pay off all liabilities, the interest on liabilities
should be paid
814. Bank reconciliation statement is the comparison of a bank statement (sent by bank) with the _________
(prepared by business)
815 Immediate Predecessor are activities that must be completed immediately prior to the start of another
activity - TRUE
816. At the time of dissolution all the assets of firm are transferred to the realization A/c at
817. Every banking company is required to close its accounts on 31st March
818. The typical method of retail operation used by supermarkets and catalog showrooms is
called: Self-service retailing.
819. Catastrophe Corp. has determined it is not a going concern, and will likely go bankrupt. Which basis of
accounting will Catastrophe adopt? Liquidation basis
820. Consumer goods with unique characteristics or brand identification often requiring a special purchase
effort are called: Specialty Products
821. Income tax on interest, dividend and rent should be:
822. An computerized collections of information obtained from data sources within the company Internal
databases
823. Balance of realization A/c is transferred to the capital A/c of the partners in
824. Overhead refers to: on going expense of operating a business
825. The percentage of profit to be transferred to statements reserve by the banking company is
826. Unfavorable balance means? BOP Deficit
827. Even though buying roles in the family change constantly, the has traditionally been the main
purchasing agent for the family. Wife
828. Accounting cycle includes: identifying, collecting and analyzing documents and transactions,
recording the transactions in journals, posting the journalized amounts to accounts in the general and
subsidiary ledgers, preparing an unadjusted trial balance
829. Activities that cannot be started until one or more of other activities are completed but immediately
follow are called Successor
830.Allotment of whole item of cost to a cost centre or cost unit is known as: Cost Allocation
831. A(n) is a retail store that carries a narrow product line with a deep assortment within that
line. Specialty store
832. Leasehold Ground rents are shown in:
833. When cheque is not paid by the bank, it is called?
834. The decision i Garner Vs Murray was given in
835. The purpose of strategic planning is to find ways in which the company can best: Use its strengths to
take advantage of attractive opportunities in the environment.
836. An asset which does not generate income to the banker is termed as NPA Non Performing Asset
837. Which of the following is not a method of cost absorption
838. Which of the following would not affect bank reconciliation?
839. Maximum possible time to complete an activity is ………………………
840. Which of the following is NOT one of the five stages of the buyer decision process?
841. A bank reconciliation statement is prepared by?
842. Rebate on bills discounted is
843. Estimated time required in normal conditions complete an activity is ………………
844. Which one of the following is not missing of cash book?
845. A holding company is one which holds more than:
846. Motive is a need that is sufficiently pressing to direct the person to seek satisfaction.
847. Under Hire Purchase System depreciation is charged
848. Service departments costs should be allocated to:
849. Bank Reconciliation is not a?
850. If a firm were to bid to do a "turnkey" operation where they would choose a building site, designing a
cement factory to build the plant, hire construction crews, assemble materials and equipment to run the new
factory, and turn over the finished factory ready to operate to the owners, the firm would be using which of
the following? Systems selling
851. A Non-banking asset is
852. …………shows the changes in assets, liabilities and net worth between two balance
sheet dates.
853. Most suitable basis for apportioning insurance of machine would be: Value of Machines
854. Which of the following statements are true:
855. According to the text, the most dramatic of the environments that affect marketing and appears to be
now shaping our world is the environment. Technological
856. Owned Subsidiary company in which more than 50% of shares are held by another company is
termed as:
857. Hirer charges depreciation on
858. The balance on the debit side of the bank column of cash book indicates? Bank Overdraft
859. Blanket overhead rate is: One single overhead absorption rate for the whole factory
860. The "in" suppliers are most likely to get nervous and feel pressure to put their best foot forward in
which of the following types of buying situations? Modified re-buy
861 When goods are purchased for the joint venture, the amount is debited to:
862. Profits earned by a Subsidiary company upto the date of acquisition of shares by the holding company
are called: Capital Profits
863. ……….shows movement of cash into and out of the firm and its net effect on balance sheet.
864. When bank statement shows a debit balance, it means? Bank Overdraft
865. Profits made by a subsidiary company after the date of purchase of shares by the holding company are
known as: profits of a revenue nature
866. Which of the following is not a technique of financial analysis:
929 In the assets side of company’s balance sheet, Fictitious assets like discount on issue of debentures are
shown under the heading: Miscellaneous Expenses
930. Preliminary expenses are an example of: Deferred Revenue Expenditure