1. An undertaking having the characteristics
of Separate Legal Existence, Common Seal and
Perpetual succession is known as [01D01]
a.
Sole Proprietory
b.
Partnership
c.
Co-operative Society
d. Joint Stock Company
2. This form of organization can maintain
personal contact with customers. [01D02]
a. Sole Proprietory
b.
Public Limited Company
c.
Co-operative Society
d.
Joint Stock Company
3. An association of persons usually of
limited means who have voluntarily joined together to
achieve a common economic end is known as.
[01M01]
a.
Sole Proprietory
b.
Partnership
c. Co-operative Society
d.
Joint Stock Company
4. The farmers of a small village have
joined together and formed an association for the purpose of
procuring their agricultural requirements
like fertiliz ers etc. , This association is known as
[01M02]
a.
Sole Proprietory
b.
Partnership
c. Co-operative Society
d.
Joint Stock Company
5. Private Limited is added at the end of a
[01M03]
a.
Government Company
b.
Public Limited Company
c. Private Limited Company
d.
Departmental Undertaking
6. Which of the following firm is easy to
start and easy to close? [01S01]
a.
Public Limited Company
b.
Public Enterprise
c. Sole Proprietory Concern
d.
Departmental Undertaking
7. The Basic difference between a Sole
Trader, and Partnership is [01S02]
a.
Personal Contact with the custom er
b. Number of Members
c.
Limited Growth
d.
Unlimited Liability
8. Which of the following in the feature of
Sole Trader? [01S03]
a.
Limited Liability
b. Unlimited Liability
c.
Liability, limited by guara ntee
d.
Liability limited by assurance
9. _ _ _ _ _ _ _ _ _ _ form of organization
requires Memorandum and Articles of Association for
Incorporation. [01S04]
a.
Sole Proprietory
b.
Partnership
c.
Co-operative Society
d. Joint Stock Company
10. The relationship between two or more
persons who agree to share the profits of the business
carried on by all or any one of them acting
for all is known as: [01S05]
a.
Sole Proprietory
b. Partnership
c.
Co-operative Society
d.
Joint Stock Company
11. Which of the following is not a feature
of Sole Proprietory concern. [02D01]
a.
It can introduce capita l on its own
b.
It enjoys/suffers profits and losses of the firm
c.
He has unlimited liability
d. Two or more persons can form it
12. Sole Proprietor Concern does not have
the following advantage. [02D02]
a.
Prompt decision-making
b.
Secrets can be very well maintained
c. Limited Liability
d.
Easy to form and Easy to close
13. What are the advantages of Sole Trader
concern? [02M01]
a.
Unlimited Company
b.
Limited amount of Capital
c.
Lack of spe cialization
d. Prompt decisions can be taken
14. What are the disadvantages of Sole
Trader concern? [02M02]
a.
It is e asy to start and easy to close
b.
Prompt decisions can be taken
c.
Secrets can be maintained
d. Unlimited liability
15. Which of the following is not a feature
of Sole Proprietorship [02M03]
a.
Easy to form and Easy to Close
b. Transferability of s hares
c.
Maintenance of Secrets
d.
Flexibility
16. Which of the following is a feature of
Sole Proprietorship concern. [02S01]
a.
Many people form it
b.
It cannot maintain Secrets
c.
It cannot maintain direct contact with customers
d. It has unlimited liability
17. How many people can start a Sole
Proprietory concern [02S02]
a.
4
b.
3
c.
2
d. 1
18. Secrets can be easily maintained in this
form of organization? [02S03]
a.
Joint Stock Company
b. Proprietory Concern
c.
Co-operative Society
d.
Departmental Undertaking
19. In which form of organization there is
no Limited Liability [02S04]
a.
Joint Stock Company
b.
Government Company
c. Sole Trader
d.
Departmental Undertaking
20. Identify a sole trader concern from the
following: [02S05]
a.
Reliance Industries Limited
b.
Hindustan Lever Limited
c.
Cham paklal and Sons
d. Pan Shop/Kirana Shop
21. What happens to the partnership form of
organization when one of its partners dies? [03D01]
a.
The Partnership continues with the remaining partners
b.
The partnership continues with the legal heirs of the deceased partners joining
the partnership
c. The Partnership dissolves
d.
The partnership continues with wife of decea sed partner
22. What happens to the partnership form of
organization when the purpose of the partnership is
completed? [03D02]
b
. T h e p a rt n e r s h ip c o n ti n u e s w i t h h a l f t h e p a r t n e
r s a. The Partnership continues
c. The Partnership dissolves
d.
The partnership continues after taking up another activity
23. What is the difference between Sole
Proprietory Concern and Partnership? [03M01]
a.
Unlimited Liability
b. _umber of P ersons forming the firm
c.
Easy to form
d.
Flexibility
24. Who is a Minor P artner. [03M02]
a.
A partner who has a minor sha re in the capital of firm
b.
A partner who has no major share in the capital of the firm
c.
A partner who has attained the age of majority
d. A partner who has not completed 18 years
of age
25. There is a partnership with four
partners. One partner of the firm borrows Rs.1,00, 000/- for the
firm. What is the position of the remaining
partners with regard to this transaction? [03M03]
a.
The partner who borro wed the money alone ha s to repay it
b.
The remaining partners are in no way responsible for this borrowing
c.
Only two partners are liable for the borrowing
d. All the partners are liable for the
borrowing
26. How many people can start a Partnership
concern for doing Banking business [03S01]
a. 10
b.
20
c.
15
d.
12
27. How many people can start a Partnership
concern for doing _on-banking business [03S02]
a.
21
b. 20
c.
25
d.
30
28. One of the features of the Partnership
concern is [03S03]
a.
It can be formed by One person
b.
It can be formed without an agreement
c. Even one person can bind all the partners
d.
It has Lim ited Liability
29. Under which of the following
circumstances the Partnership company does not dissolve: [03S04]
a.
On death of a partner
b.
On retirement of a partner
c. One of the partners has gone on business
tour
d.
On the completion of task for which partnership was formed
30. A partner who contributes to the capital
of the firm but does not take active part in the business
is known as [03S05]
a.
Active Partner
b. Sleeping Partner
c.
Nominal P artner
d.
Minor Partner
31. A company issued share capital of
Rs.10/- per share. It has c ollected a sum of Rs.5/- on
subscription. What is the maximum amount of
liability the member will have on the company
going into liquidation? [04D01]
a.
Rs.10/-.
b.
Unlimited Liability
c.
Rs.15/-
d. Rs.5/-
32. A company, where not less than 51 % of
the share capital is held by Central Government, it is
known as [04D02]
a.
Public Com pany
b.
Private Company
c.
Foreign Company
d. Government Company
33. The contribution of the member does not
exceed the face value of the s hare, in case the company
goes into liquidation. This concept is known
as [04M01]
a.
Artificial Person
b.
Separate Legal Existence
c. Limited Liability
d.
Perpetual Succession
34. A notice, circular, advertisement or any
other document inviting offers from the public for the
subscription or purchase of any shares in or
debentures of the body corporate is known as
[04M02]
a.
Memorandum of Association
b.
Articles of Association
c.
Agreement
d. Prospectus
35. Members may come and members may go but
the company continues forever. This concept is
known as [04M03]
a.
Artificial Person
b.
Separate Legal Existence
c.
Limited Liability
d. Perpetual Succession
36. What is the maximum number of members
for a Private Limited Company [04S01]
a.
10
b.
25
c. 50
d.
40
37. What is the minimum number of members
for forming a Public Limited Company? [04S02]
a.
2
b.
5
c. 7
d.
4
38. What is the maximum number of members
for a Public Limited Company. [04S03]
a.
100
b.
250
c. Unlimited
d.
400
39. Which of the following is a feature of
Private Limited Company. [04S04]
a. Restricts the right of transfer of its
shares
b.
Allows transfer of its shares
c.
It must have a minimum capital of Rs.5 lakhs
d.
It must have a minimum 7 members
40. The property of the company does not
become the property of the members. This concept is
known as [04S05]
a.
Artificial Person
b. Separate Legal Existence
c.
Limited Liability
d.
Perpetual Succession
41. What is the main idea or concept of
disinvestments? [05D01]
a.
To reduce the Government holding to less than 75 %
b. To reduce the Government holding to less
than 50 %
c.
To reduce the Government holding to less than 25 %
d.
To reduce the Government holding to less than 10 %
42. Which company is not in the list of PSUs
to be disinvested? [05D02]
a.
Air India
b.
Oil and Natural Gas Com mission
c. Hindustan Lever Limited
d.
Steel Authority of India Limited
43. Which of the following is a Statutory
Corporation. [05M01]
a. Industrial Development Bank of India
b.
Central Bank of India
c.
Mahendra & Mahendra
d.
Zee Telefilms Ltd
44. What is the advantage of a Government
Company? [05M02]
a.
Continued political Interference
b.
Evades Constitutional Responsibility
c.
Poor sense of commitment
d. Separate Legal Entity
45. What is the disadvantage of a Government
Company? [05M03]
a.
Formation is easy
b.
Separate Legal entity
c.
Quick decisions
d. Continued government interference
46. Departmental Undertaking is an
undertaking whose affairs are c arried on under [05S01]
a.
Private Limited Company
b.
Public Limited Company
c.
Government Company
d. Government Department
47. Which of the following is a Departmental
Undertaking [05S02]
a.
ONGC
b.
State Bank of India
c. Railway
d.
Reliance Industries Limited
48. A government company is defined as a
Company in which, not less than _ _ _ _ _ _ _ percent
share capital is held by the Central or
State Government. [05S03]
a.
26%
b.
31%
c.
45%
d. 51%
49. Which of the following is a Government
Company. [05S04]
a. Export Credit Guarantee Corporation of
India
b.
Larsen & Toubro
c.
Dr. Reddy Labs
d.
Maruthi Udyog Limited
50. A body corporate created by an Act of P
arliament or Legislature and notified by the name in the
Official Gazette is known as [05S05]
a.
Public Limited Company
b.
Private Limited Company
c.
Foreign Company
d. Statutory Corporation
51. Stock is categorized as [06D01]
a. Working Capital
b.
Intangible Assets
c.
Fixed Capital
d.
Current Liabilities
52. Bank Loan is categorized as [06D02]
a.
Working Capital
b.
Intangible Assets
c. Current Liabilities
d.
Current Assets
53. XYZ Ltd Bank has subscribed to the Share
Capital of ABC Company Ltd. This method of raising the
funds is known as [06M01]
a.
Bank Loan
b. Equity Shares
c.
Debentures
d.
Deposits
54. The amount borrowed from a Bank is known
as [06M02]
a. Bank Loan
b.
Equity Shares
c.
Debentures
d.
Deposits
55. Land, Building, Plant and Machinery are
categorized as [06M03]
a.
Working Capital
b.
Intangible Assets
c. Fixed Capital
d.
Current Assets
56. Owners Capital is known as [06S01]
a.
Deposits
b. Equity Capital
c.
Debentures
d.
Bank Loan
57. Where the trader agrees to sell its
accounts receivable or debtors at discount to the specialized
dealer is called [06S02]
a.
Deposits
b.
Equity Capital
c. Debt factoring
d.
Bank Loan
58. Short-term Credit facility extended by
the Creditor to the Debtor is known as [06S03]
a.
Deposits
b.
Equity Capital
c. Trade Credit
d.
Bank Loan
59. Where the debentures are repaid on a
specified date are known as [06S04]
a.
Convertible Debentures
b.
Non-Convertible Debentures
c.
Secured Debentures
d. Redeemable Debentures
60. Where the unpaid dividend in arrears
cannot be claimed in future by the Preference Shareholders
is known as [06S05]
a.
Participating Prefe rence Shares
b.
Redeemable Preference Shares
c.
Cumulativ e Preference Shares
d. _on-cumulative Preference Shares
61. If the Outstanding Wages increase, what
will be the effect on Working Capital? [07D01]
a.
The Gross Working Capital Decreases
b.
The Gross Working Capital remains unchanged
c. The Net Working Capital Decreases
d.
The Net Working Capital Increases
62. If the Cash on Hand increases from
Rs.10,000/- to Rs.20,000/-, what will be the effect on Gross
Working Capital? [07D02]
a.
The Gross Working Capital Decreases
b.
The Gross Working Capital remains unchanged
c.
The Net Working Capital Decreases
d. The Gross Working Capital Increases
63. If the Raw Material requirement
increases from 3 months to 4 months, what is the effect on the
Working Capital? [07M01]
a.
The Net Working Capital Remains Unchanged
b.
The Gross Working Capital Remains Unchanged
c. The Net Working Capital Increases
d.
The Net Working Capital Decreases
64. If the Operating Cycle increases, what
will be the effect on Working Capital? [07M02]
a.
The Gross Working Capital Decreases
b.
The Gross Working Capital remains unchanged
c.
The Net Working Capital Decreases
d. The Net Working Capital Increases
65. If the Current Liabilities increase,
what will be the effect on Working Capital? [07M03]
a.
The Gross Working Capital Decreases
b.
The Gross Working Capital remains unchanged
c. The Net Working Capital Decreases
d.
The Net Working Capital Increases
66. The cost of Raw material per Unit is
Rs.10/- per Unit. If produc tion per year is 12,000/- units and
the raw material requirement is for one
month. What is the cost of raw material r [07S01]
a.
Rs.1,20,000/-
b.
Rs.12,000/-
c. Rs.10,000/-
d.
Rs.1,00,000/-
67. Raw Material cost is Rs.10,000. Wages is
Rs.12,000/-. Overheads is Rs .8,000/-. The Debtors and
cash are Rs.10,000 and Rs.15,000/-
respectively. The Creditors are Rs.15,000/ -. What is the net
working capital? [07S02]
a.
Rs.30,000/-
b.
Rs.70,000/-
c. Rs.40,000/-
d.
Rs.55,000/-
68. Unit cost of Raw Material is Rs.10/-
Wages is Rs.12/- Overheads is Rs.8/-. The Total Number of
Units produced is 1,000 per month. The
requirement of Raw Material, Wages and Overheads is
one month. The Debtors and cash are
Rs.10,000 and Rs.15,000/- respectively. The Creditors are
Rs.15,000/-. What is the net working
capital? [07S03]
a.
Rs.30,000/-
b.
Rs.70,000/-
c. Rs.40,000/-
d.
Rs.55,000/-
69. Raw Material cost is Rs.10/- Wages is
Rs.12/-. Overheads are Rs.8/-. The Debtors and cash are
Rs.10,000/- and Rs.15,000/- respectively.
The requirement of Raw Material, Wages and
Overheads is one month. The Total Production
is 500 Units per month. What is the Gross working
capital? [07S04]
a.
Rs.30,000/-
b.
Rs.70,000/-
c. Rs.40,000/-
d.
Rs.55,000/-
70. The Current Assets of the company are
Rs.5,00,000/ - and the Current Liabilities of the company
Rs.1,00,000/-. What is the Net Working
Capital? [07S05]
a.
Rs.5,00,000/-
b. Rs.4,00,000/-
c.
Rs.6,00,000/-
d.
Rs.1,00,000/-
71. What is the decision criterion for
selecting a Project in Profitability Index? [08D01]
a.
The Profitability Index should be less between two projects
b. The Profitability Index should be more
between two projects
c.
The Profitability Index has no relationship with the selection of a project
d.
The Profitability Index should be same between two projects
72. In which of the following methods the
Discounted Present Value alone is calculated [08D02]
a.
Pay back Period
b.
ARR
c.
Net Present Value
d. Profitability Index
73. What is the decision criterion for
selecting a Project in ARR? [08M01]
a.
The ARR should be less between two projects
b. The ARR should be more between two
projects
c.
The ARR has no relationship with the selection of a project
d.
The ARR should be same between two projects
74. What is the decision criterion for
selecting a Project in _et P resent Value? [08M02]
a.
The Net Present Value should be less between two projects
b. The _et P resent Value should be more
between two projects
c.
The Net Present Value has no rela tionship with the selection of a project
d.
The Net Present Value should be same between two pro jects
75. What is the decision criterion for
selecting a Project in IRR? [08M03]
a.
The IRR should be less between two projects
b. The IRR should be more between two
projects
c.
The IRR has no relationship with the selection of a project
d.
The IRR should be same between two projects
76. What is the Traditional Method of
Capital Budgeting? [08S01]
a.
Net Present Value Method
b.
Internal Rate of Return
c.
Profitability Index
d. Average Rate of Return
77. What is Future Value of Money? [08S02]
a.
Value of Rs.100/- receivable in Future
b.
Value of Rs.100/- receivable in the past
c. Value of Rs.100/- with interest
receivable in Future
d.
Value of Rs.100/- at discount receivable in Future
78. What is the formula for calculating the
Future Value of Money? [08S03]
a. P x (1+r/100)
b.
R x (1+P/100)
c.
100 x (1+100/P)
d.
P x (1+r)
79. What is the principle behind the
discounting of future flows of money? [08S04]
a.
Money Value increases in future
b. Money Value decreases in future
c.
Money Value remains same in future
d.
The Money Value has no relationship with discounting
80. What is the decision criterion for
selecting a Project in Pay Back Period? [08S05]
a. The Pay back Period should be less
between two projects
b.
The Pay back Period should be more between two projects
c.
The Pay Back Period has no rela tionship with the selection of a project
d.
The Pay back Period should be same between two projects
81. A firm is considering a project with an
initial outlay of Rs.50,000/- and the life of the plant is 5
years. If the scrap value of the plant is
Rs.10,000. What is the value of average investment?
[09D01]
a.
Rs.10000/-
b. Rs.12000/-
c.
Rs. 2000/-
d.
Rs. 8000/-
82. A firm is considering a project with an
initial outlay of Rs.50,000/- and the life of the plant is 5
years. If the scrap value of the plant is
Rs.10,000. What is the amount of depreciation? [09D02]
a.
Rs.10000/-
b.
Rs.12000/-
c.
Rs. 2000/-
d. Rs. 8000/-
83. When the Annual Inflows are not uniform
the Pay back Period is Calculated as under [09G01]
a.
By dividing the Initial Investment with the number of years
b.
By dividing the Initial Investment with the Annual Cash Inflows of f irst year
c.
By dividing the Initial Investment with the Annual Cash Inflows of first year
d. By doing Cumulative Total of Annual Cash
Inflows
84. The Initial Investment in a project is
Rs.10,000/ -. The annual Cash Inflows for first, second,
third, fourth and fifth year are Rs.
1,500/-, Rs.2,500/-, Rs.3,000/-, Rs.3,000/- and Rs.2,000/-.
The Pay Back Period is [09M01]
a. 4 years
b.
3 years
c.
2 years
d.
1 year
85. The Initial Investment in a project is
Rs.10,000/ -. The annual Cash Inflows for the first, second,
third, fourth and fifth year are Rs.2,500/-,
Rs.2,500/-, Rs.3,000/-, Rs.4,000/- and Rs.2,000/-.
The Pay Back Period is [09M02]
a.
4 years
b. 3.5 years
c.
2.5 years
d.
1 year
86. A firm is considering a project with an
initial outlay of Rs.20,000/- and project life of 4 years. The
annual cash inflows are Rs.12,000/ - for a
period of 4 years. What is the ARR. [09M03]
a. 120 %
b.
100 %
c.
75 %
d.
50 %
87. Pay back Period is Calc ulated as under
[09S01]
a. Initial Investment/Annual Inflows
b.
Annual Inflows/Initial Investment
c.
Annual Inflows/No of years
d.
No of years/Initial Investment
88. The formula for calculating the Average
Rate of Return is [09S02]
a. Average annual profits after tax /
Average Investment
b.
Avera ge Investment / Average Income
c.
Avera ge annual profits before tax / Average Investment
d.
Annual profits afte r tax / Original Investment.
89. The Initial Investment in a project is
Rs.10,000/-. The annual Cash Inflows are Rs. 2,500/- per
year. The Pay Back Period is [09S03]
a. 4 years
b.
3 years
c.
2 years
d.
1 year
90. The Initial Investment in a project A is
Rs.10,000/- and project B is Rs.20,000. The annual Cash
Inflows are Rs.2,500/- and Rs.4,000/- per
year. The Pay Back Period for projects are [09S04]
a.
4 years and 3 years
b. 4 years and 5 years
c.
2 years and 4 years
d.
4 years and 4 years
91. The Initial Investment in a project is
Rs.10,000/ -. The Cash Inflows for the first, second, third
and fourth year are Rs.2,500/ -, Rs.3,000/-,
Rs.3,500/- and Rs.4,000/- respectively . Find the
Profitability Index at a Discount rate of 10
%. [10D01]
a.
0.01
b. 1.30
c.
0.11
d.
1.00
92. If the Discount rate increases from 10 %
to 15 % what will be effect on the Profitability Index?
[10D02]
a.
Profitability Index will rise
b. Profitability Index will fall
c.
Profitability Index will remain unchanged
d.
Profitability Index and Discount Rate have no relationship
93. A firm is considering a project with an
initial outlay of Rs.35,000/- and project life of 4 years. The
annual cash inflows are Rs.12,000/- for a
period of 4 years. What is the IRR? [10M01]
a.
10 %
b.
11.02 %
c. 13.95 %
d.
15 %
94. The formula for calculating the Profitability
Index is [10M02]
a. Present Value of Cash Inflows / Cash O
utflows
b.
Net Present Value of Ca sh Inflows / Cash Outflows
c.
Cash Outflows / Present Value of Cash Inflows
d.
Cash Outflows / Net Present Value of Cash Inflows
95. The Initial Investment in a project is
Rs.10,000/-. The Cash Inflows are Rs.2,500/- per year for 4
years. Find the P rofitability Index at a
Discount rate of 10 %. [10M03]
a.
1.00
b.
1.79
c. 0.79
d.
0.21
96. _et P resent Value is [10S01]
a.
b.
c.
d.
97. If the Interest Rate increases what will
be the effect on _et Present Value? [10S02]
a.
There will be no change in NPV
b. The _PV will decrease
c.
The NPV will increase
d.
Interest Rate and NPV ha ve no relationship
98. If the Interest Rate decreas es what
will be the effect on _et Present Value? [10S03]
a.
There will be no change in NPV
b.
The NPV will decrease
c. The _PV will increase
d.
Interest Rate and NPV ha ve no relationship
99. A firm is considering a project with an
initial outlay of Rs.20,000/- and project life of 4 years. The
annual cash inflows are Rs.12,000/ - for a
period of 4 years. What is the _PV at Discount Rate of
10 %? [10S04]
a.
Rs.37,038
b.
Rs.35,000
c.
Rs.38,040
d. Rs.18,040
100. The formula for calculating the
Internal Rate of Return is [10S05]
a.
b.
c.
d.
101. If the Company purchased shares of
another Company, what is this kind of asset known as?
[11D01]
a.
Equity Capital
b.
Current Liability
c.
Fictitious Asset
d. Current Asset
102. A company purchased Land for
Rs.10,000/- the market value of the same is Rs.20,000/-. If the
accounts are written for Rs.10,000/ -, this
concept is known as [11D02]
a.
Market Value
b.
Cash Value
c. Book Value
d.
Realisable Value
103. Goodwill is a [11M01]
a.
Tangible Asset
b. Intangible Asset
c.
Fictitious Asset
d.
Current Asset
104. Computer is a [11M02]
a. Tangible Asset
b.
Intangible Asset
c.
Fictitious Asset
d.
Current Asset
105. If the Company has made deposits with a
Bank. What is this asset known as? [11M03]
a.
Fixed Asset
b.
Current Liability
c.
Fictitious Asset
d. Current Asset
106. Every business unit is assumed to
continue forever and it has a perpetual life. This concept of
accounting is known as [11S01]
a.
Business Entity Concept
b. Going Concern Concept
c.
Money Measurement Concept
d.
Cost Concept.
107. The assets are recorded at the cos t at
which they are acquired. This concept of accounting is
known as [11S02]
a.
Business Entity Concept
b.
Going Concern Concept
c.
Money Measurement Concept
d. Cost Concept.
108. When the accounts are written for the
period Diwali to Diwali the concept is known as [11S03]
a.
Business Entity Concept
b.
Going Concern Concept
c.
Money Measurement Concept
d. Accounting Period Concept
109. All transactions, which can be measured
in terms of money, are recorded in the accounts. This
concept of accounting is known as [11S04]
a.
Business Entity Concept
b.
Going Concern Concept
c. Money Measurement Concept
d.
Cost Concept.
110. When the accounts are written for the
period 1.1.2005 to 31.12.2005 the concept is known as
[11S05]
a.
Business Entity Concept
b.
Going Concern Concept
c.
Money Measurement Concept
d. Accounting Period Concept
111. Which account is Credited when the
Purchased Goods are Returned? [12D01]
a.
Purchases A/c
b. Purchase Return A/c
c.
Cash Account
d.
Goods Account
112. Salary Account, Rent Account,
Commission Account, Discount Account are known as [12D02]
a.
Real Account
b.
Personal Account
c. Nominal Account
d.
Fixed Account
113. What is a Bad Debt Account? [12M01]
a.
Real Account
b.
Personal Account
c. Nominal Account
d.
Fixed Account
114. Cash Account, Bank Account, Stock
Account are known as [12M02]
a. Real Account
b.
Personal Account
c.
Nominal Account
d.
Fixed Account
115. Which of the following is known as
_ominal Account [12M03]
a.
Mohan Account
b.
Bank Account
c. Commission Account
d.
Cash Account
116. Journal is a [12S01]
a.
Book of classification of entries
b. Book of original entries
c.
Book of sum ma rizing entries
d.
Book of Trading Account.
117. The Principle of double entry in the
case of Personal Account is [12S02]
a.
Debit - What Com es in Credit What Goes out
b. Debit - Receiver Credit - Giver
c.
Debit - Expenses Credit - Income
d.
Debit - Cash Credit - Sales
118. The Principle of double entry in the
case of Real Account is [12S03]
a. Debit - What Comes in Credit What Goes
out
b.
Debit - Receiver Credit - Giver
c.
Debit - Expenses Credit - Income
d.
Debit - Cash Credit - Sales
119. The Principle of double entry in the
case of _ominal Account is [12S04]
a.
Debit - Receiver Credit - Giver
b. Debit - Expenses Credit - Income
c.
Debit - What Com es in Credit What Goes out
d.
Debit - Cash Credit - Sales
120. The amount of Debit must _ _ _ _ _ _ _
_ _ _ the amount of Credit. [12S05]
a.
Be greater than
b. Be equal to
c.
Be Less than
d.
Be unequal to
121. Cash Rs.10,000/-, Capital
Rs.1,00,000/-, Fixed Assets Rs.40,000/-, Sundry Debtors Rs.50,000/-.
What is the total of trial Balance? [13D01]
a.
Rs.2,00,000/-
b. Rs.1,00,000/-
c.
Rs.50,000/-
d.
Rs.10,000/-
122. The balance shown in the Rent Received
is shown in the Trial Balance as [13D02]
a.
Debit side of trial balance
b. Credit side of Trial Balance
c.
Deducted from the Rent paid
d.
Added to the Rent paid
123. The Depreciation is 10 % of the Plant
& Machinery. If the Plant & Machinery Value is 1,00,000
and the useful life of the asset is 10 years
then the Depreciation is [13M01]
a.
12000
b. 10000
c.
8000
d.
6000
124. Purchased Goods for Cash from Mohan for
Rs.50,000/-. How many number of Ledger Accounts
are there? [13M02]
a.
1
b. 2
c.
3
d.
4
125. Purchased Goods for Cash from Mohan for
Rs.50,000/-. What Ledger Accounts are opened?
[13M03]
a. Goods A/c and Cash Account
b.
Goods A/c and Mohan Account
c.
Mohan A/c and Ca sh Account
d.
Mohan A/c and Ba nk Account
126. Identify the accounts in the following
Transaction, which is Debited and Credited. P aid
Rs.14,500/- Cash to Mohan in full settlement
of his liability for Rs.15,000/- [13S01]
a.
Dr - Cash A/c Cr Mohan A/c
b.
Dr Cash A/c Dr Discount A/c Cr - Mohan A/c
c. Dr Mohan A/c Cr Cash A/c Cr Discount A/c
d.
Dr Cash A/c Cr Mohan A/c Cr Discount A/c
127. Identify the two accounts in the
following Transaction, which is Debited and Credited. P urchased
Goods from Mohan on Cash for Rs.10,000/-
[13S02]
a.
Dr - Goods A/c Cr Mohan A/c
b.
Dr Purchases A/c Cr - Mohan A/c
c. Dr Purchases A/c Cr Cash A/c
d.
Dr Mohan A/c Cr Cash A/c
128. Identify the accounts in the following
Transaction, which is Debited and Credited. Received
Rs.14,500/- Cash from Mohan in full
settlement of his debt for Rs.15,000/- [13S03]
a.
Dr - Cash A/c Cr Mohan A/c
b. Dr Cash A/c Dr Discount A/c Cr - Mohan
A/c
c.
Dr Mohan A/c Cr Cash A/c
d.
Dr Cash A/c Cr Mohan A/c Cr Discount A/c
129. When Machinery is purchased from Mohan
through a cheque, what are the accounts Debited and
Credited. [13S04]
a.
Debit - Machinery Credit - Cash
b.
Debit - Machinery Credit - Mohan
c.
Debit - Cheque Credit - Machinery
d. Debit - Machinery Credit - Bank
130. When Commission is received by Cheque
what are the accounts Debited and Credited? [13S05]
a.
Debit - Commission Credit - Bank
b. Debit - Bank Credit - Commission
c.
Debit - Cheque Credit - Commission
d.
Debit - Commission Credit - Cheque
131. What is a Manufacturing Account?
[14D01]
a.
It is a book of Journal
b.
It is a Trial Balance
c.
Where the net profit of a concern is ascertained
d. Where the gross profit of a concern is
ascertained
132. What is a Profit and Loss Account?
[14D02]
a.
It is a book of Journal
b.
It is a Trial Balance
c. Where the net profit of a concern is
ascertained
d.
Where the gross prof it of a concern is ascertained
133. Sales Returns are [14M01]
a.
Added to the Closing Stock
b.
Added to the Sales
c.
Deducted from the Purchases
d. Deducted from the Sales
134. The Opening Stock is Rs.10,000/-, The
Purchases Rs.5,000/-, The Purchase Returns Rs.1,000/-,
Depreciation Rs.2,000/-, Wages Rs.2, 000/-,
Carriage Rs.2,000/-. The Sales and Sales Return are
Rs.25,000/- and Rs.2,000/- respectively.
What is the Gross Profit? [14M02]
a.
20,000/-
b.
25,000/-
c. 3,000/-
d.
5,000/-
135. What is a Manufacturing Account?
[14M03]
a.
It is a book of journal
b.
Where the Net profits of a Manuf acturing concern are recorded
c. Where the expenditure and income of a
Manufacturing concern are recorded
d.
Where the assets and liabilities are recorded.
136. What is a Trading Ac count? [14S01]
a.
Where Net Profit is ascertained
b. Where the expenditure and income of
Trading concern are recorded
c.
Where the Net Profit of a Trading concern are reco rded
d.
Where the assets and liabilities are recorded
137. The debit balance in the Purchases
account is posted in [14S02]
a.
Trial Balance
b. Trading Account
c.
Profit and Loss Account
d.
Balance Sheet
138. The Depreciation on Machinery is posted
in [14S03]
a.
Trial Balance
b. Trading Account
c.
Profit and Loss Account
d.
Balance Sheet
139. The Credit balance in the Sales account
is posted in [14S04]
a.
Cash Account
b. Trading Account
c.
Profit and Loss Account
d.
Balance Sheet
140. Purchase Returns are [14S05]
a.
Added to the Opening Stock
b.
Added to the Purchases
c. Deducted from the P urchases
d.
Deducted from the Sales
141. Bank Loan repayable after a period of 2
Years is [15D01]
a.
Fixed Asset
b. Long Term Liability
c.
Current Liabilities
d.
Reserve and Surplus
142. Bank Loan repayable within a period of
12 months is [15D02]
a.
Fixed Asset
b.
Current Assets
c. Current Liability
d.
Reserve and Surplus
143. Land and Building is [15M01]
a. Tangible Asset
b.
Intangible Asset
c.
Fictitious Asset
d.
Current Asset
144. Car is shown in the Balance Sheet as
[15M02]
a.
Intangible Asset
b. Fixed Asset
c.
Liability
d.
Current Asset
145. Plant and Machinery is shown in the
Balance Sheet as [15M03]
a.
Miscellaneous Asset
b. Fixed Asset
c.
Liability
d.
Current Asset
146. Balance Sheet is a [15S01]
a. Statement of Assets and Liabilities
b.
Statement of Expenditure and Income
c.
Statement of Purchases
d.
Statement of Sales
147. In a Balance Sheet [15S02]
a. Total of Assets must equal Liabilities
b.
Total of Assets must be unequal Liabilities
c.
Total of Assets must be greater than Liabilities
d.
Total of Assets must be less than Liabilities
148. Sundry Debtor is a [15S03]
a.
Tangible Asset
b.
Fixed Asset
c.
Fictitious Asset
d. Current Asset
149. Stock is a [15S04]
a. Tangible Asset
b.
Intangible Asset
c.
Fictitious Asset
d.
Fixed Asset
150. Goodwill is a [15S05]
a.
Tangible Asset
b. Intangible Asset
c.
Fictitious Asset
d.
Current Asset
151. Adjustment entry of unpaid wages
amounting to Rs.5,000/- will be treated in the Final Accounts
as : [16D01]
a.
Credited to P &L A/c and Shown on the Asset side of the Balance Sheet
b.
Debited to P &L A/c and reflected in Liabilities side of Ba lance Sheet
c. Debited to Trading A/c and reflected in
Liabilities side of Balance Sheet
d.
Debited to Trading A/c and added to Sundry Creditors in Balance Sheet
152. Adjustment entry of Closing Stock
amounting to Rs.15,000/- will be treated in the Final Accounts
as : [16D02]
a.
Credited to P &L A/c and shown o n the Asset side of the Balance Sheet
b.
Debited to P & L A/c and shown on the Liabilities side o f the Balance
Sheet
c. Credited to Trading A/c and shown on the
Asset side of the Balance Sheet
d.
Debited to Trading A/c and shown on the Liabilities side of the Balance Sheet
153. Adjustment entry of Bad debts amounting
to Rs.5,000/- will be treated in the Final Accounts as :
[16M01]
a.
Credited to P &L A/c and Shown on the Asset side o f the Balance Sheet
b.
Debited to P & L A/c and Deducted from the Sundry Debtors in Balance Sheet
c. Debited to Trading A/c and deducted from
Sundry Debtors in Balance Sheet
d.
Debited to Trading A/c and added to Sundry Creditors in Balance Sheet
154. Adjustment entry of Depreciation
amounting to Rs.5,000/- on Plant and Machinery will be treated
in the Final Accounts as : [16M02]
a.
Credited to P &L A/c and Shown on the Asset side of the Balance Sheet
b.
Debited to P & L A/c and deducted from the Plant and Machinery in Balance
Sheet
c. Debited to Trading A/c and deducted from
Plant and Machinery in Balance Sheet
d.
Debited to Trading A/c and added to Capital in Balance Sheet
155. XYZ Ltd., Co., has received a sum of
Rs.50,000/- from a Relative of Director as a deposit for a
period of 6 months. What should be the
classification in the Balance Sheet. [16S01]
a.
Fixed Asset
b.
Unsecured Creditors
c. Current Liability
d.
Reserve and Surplus
156. ABC Co., Ltd., has borrowed a sum of
Rs.1,00,000/ - from the Bank against the mortgage of its
property. What should be the classification
in the Balance Sheet? [16S02]
a.
Asset
b.
Fixed Asset
c. Liability
d.
Current Asset
157. Net profit of the Profit and Loss
Account is [16S03]
a. Added to the Capital
b.
Deducted from the Capital
c.
Added to the Drawings
d.
Added to the Sundry Creditors
158. In the adjustment entries for final
accounts, the Closing Stock is treated as under [16S04]
a.
Debit - Trading A/c. Credit - P &L A/c
b.
Debit -. P &L A/c Credit - Trading A/c
c. Assets -. Balance Sheet Credit - Trading
A/c
d.
Liabilities -. Balance Sheet Credit - Trading A/c
159. Bills Receivable is a [16S05]
a.
Long Term Debt
b.
Current Liabilities
c.
Fictitious Asset
d. Current Asset
160. The Current Ratio for the Years 2003
and 2004 are 2:1 and 3:1 respectively. What does the Ratio
indicate? [17D01]
a.
The Current Liabilities have gone up
b.
The Current Assets have gone down
c.
The Current Asets have remained unchanged
d. The Current Liabilities have gone down
161. The Current Ratio for the Years 2003
and 2004 are 3:1 and 2:1 respectively. What does the Ratio
indicate? [17D02]
a.
The Current Liabilities have gone up
b. The Current Assets have gone down
c.
The Current Assets have remained unchanged
d.
The Current Assets have gone up
162. Ratio measuring the liquidity of a
company is [17M01]
a.
Debt-equity Ratio
b. Current Ratio
c.
Earning Per Share
d.
Interest Coverage Ratio
163. What is the formula for Quick Ratio?
[17M02]
a.
Current Assets - Current Liabilities
b.
Current Assets / Current Liabilities
c. Quick Assets / Current Liabilities
d.
Current Liabilities / Quick Assets
164. How to calculate Quick Assets? [17M03]
a.
Current Assets (Opening Stock + Closing Stock)
b. Current Assets - (Closing Stock + Prepaid
Expenses)
c.
Current Assets Current Liabilities
d.
Current Assets Prepaid Expenses
165. Current Ratio is [17S01]
a.
Current Assets - Current Liabilities
b.
Current Assets + Current Liabilities
c.
CL/CA
d. Current Assets / Current Liabilities.
166. What should be the reasonable level of
Current Ratio? [17S02]
a.
1:1
b.
1:2
c.
3:1
d. 2:1
167. Cash Rs.10,000/-, Bank Balance
Rs.20,000/-, Stock Rs.30,000/-, Marketable Securities
Rs.40,000/-, Sundry Debtors Rs.50, 000/-,
and Sundry Creditors are Rs.50,000/-. What is the
Current Ratio? [17S03]
a.
1:1
b.
1:2
c. 3:1
d.
2:1
168. If the Current Assets increases what
will be effect on Current Ratio? [17S04]
a. Current Ratio increases
b.
Current Ratio De creases
c.
Current Ratio Remains Unchanged
d.
There will not be any impact on Current Ratio
169. If the Current Liabilities increases
what will be effect on Current Ratio? [17S05]
a.
Current Ratio increases
b. Current Ratio Decreases
c.
Current Ratio Remains Unchanged
d.
There will not be any im pact on Current Ratio
170. The Cost of Goods Sold is Rs.1,00,000/-
and the opening stock and closing stock respectively are
Rs.10,000/- and Rs.30,000/-. What is the
Inventory Turnover Ratio? [18D01]
a.
10
b.
2.5
c. 5
d.
3
171. If the Average Inventory goes up what
will be the effect on Inventory Turnover Ratio? [18D02]
a.
The Credit Sales have increased
b.
The Inventory Turnover Ratio increases
c. The Inventory Turnover Ratio decreases
d.
Credit Purchases have increased
172. If the Debtors turnover ratio increases
from 3 to 5 between two years 2002 and 2003, what will
be the inference? [18M01]
a. The Credit Sales have inc reased
b.
The Average Debtors have increases
c.
The Credit Sales have decreased
d.
Credit Purchases have increased
173. If the Creditors turnover ratio
increases from 3 to 5 between two years 2002 and 2003, what will
be the inference? [18M02]
a.
The Credit Sales have increased
b.
The Average Debtors have increases
c.
The Credit Sales have decreased
d. Credit P urchases have increased
174. What is the formula for Inventory
Turnover Ratio? [18M03]
a.
Avera ge Inventory/Cost of goods sold
b. Cost of goods sold/Average Inventory
c.
Cost of goods purchased/Average Inventory
d.
Avera ge Inventory/Purchases
175. Debtors Turnover Ratio [18S01]
a.
Avera ge Debtors/Sales
b. Credit Sales/Average Debtors
c.
Avera ge Inventory/Average Debtors
d.
Credit Purchases/Average Creditors
176. The credit sales of the firm is
Rs.1,00,000/-. The Opening Debtors and Closing Debtors of the firm
are Rs.10,000/- and Rs.30,000/-. What is the
Debtors turnover ratio? [18S02]
a.
1
b.
2
c.
3
d. 5
177. Creditors Turnover Ratio [18S03]
a.
Avera ge Creditors/Sales
b. Credit P urchases/Average Creditors
c.
Avera ge Inventory/Average Debtors
d.
Credit Sales/Average Debtors
178. Ratio measuring the Activity of a
company is [18S04]
a.
Debt-equity Ratio
b.
Current Ratio
c. Debtors Turnover Ratio
d.
Interest Coverage Ratio
179. The credit Purchases of the firm is
Rs.2, 00,000/-. The Opening Creditors and Closing Creditors of
the firm are Rs.20,000/- and Rs.60,000/-.
What is the Creditors turnover ratio? [18S05]
a.
1
b.
2
c.
3
d. 5
180. While calculating the Debt -equity
Ratio Debentures should be added to [19D01]
a.
Insiders Funds
b. Long Term Debt
c.
Equity Share Capital
d.
Fixed Interest Charges
181. A company has Debt-equity Ratio of 2:1.
At this stage the Company has mobilized Debentures
worth around Rs.5,00,000/-. What will be the
effect on the Debt-equity Ratio? [19D02]
a. Debt-equity Ratio will go up
b.
Debt-equity Ratio will remain uncha nged
c.
Debt-equity Ratio will go down
d.
There will be no relationship to Debt-equity Ratio
182. The Interest Coverage Ratio is 1:2 for
a firm. What do you understand from the Interest Coverage
Ratio? [19M01]
a. The profits earned are insufficient to
cover the interest charges
b.
The profits earned are sufficient to cover the interest charges
c.
The profits earned are equal to the interest charges
d.
The profits earned have to relationship with interest charges
183. The Earning before Interest and Tax
(EBIT) is Rs.4,00,000/- and the Fixed Interest Charges are
Rs.1,00,000/-. What is the interest coverage
ratio? [19M02]
a.
1:1
b. 4:1
c.
3:1
d.
2:1
184. Ratio measuring the Solvency of a
Company is [19M03]
a.
Current Ratio
b. Debt-Equity Ratio
c.
Debtors Turnover Ratio
d.
Return on Investment
185. Debt -Equity Ratio is [19S01]
a.
Shareholders equity / Debt
b.
Total Liability/Shareholders equity
c. Long Term Debt/Shareholders equity
d.
Total Liability/Total Assets
186. What should be the reasonable level of
Debt-Equity Ratio is [19S02]
a. 2:1
b.
1:2
c.
3:1
d.
1:3
187. The Debt- Equity Ratio for the year
2002 and 2003 are 2:1 and 1:2. What does the Ratio indicate?
[19S03]
a. Debt of the Company has gone down in the
year 2003
b.
Debt of the Company has gone up in the year 2003
c.
Debt of the Company has remained unchanged in the year 2003
d.
Equity of the Com pany has remained unchanged in the year 2003
188. Interest Coverage Ratio [19S04]
a.
EBIT/Average Debtors
b.
Fixed Interest Charges/EBIT
c. EBIT/Fixed Interest Charges
d.
Fixed Interest Charges/Bank Loan
189. The Profits earned by the Company are s
ufficient to pay the Interest is indicated by the following
Ratio. [19S05]
a.
Debt-equity Ratio
b. Interest Coverage Ratio
c.
Debtors Turnover Ratio
d.
Earning Per Share
190. The company has earned a _et Profit
after Tax Rs.5,00,000/-. The number of shares of the
Company is 50,000. During the year the
company has given Bonus Shares of 50,000. What is the
Earning Per Share? [20D01]
a.
0.1
b. 5
c.
10
d.
2
191. Earning Per Share for the year 2002 and
2003 are 5 and 6 respectively. What does this imply?
[20D02]
a.
Profits of the Company have gone down in the year 2003
b. Profits of the Company have gone up in
the year 2003
c.
Profits of the Company have rem ained unchanged in the year 2003
d.
Losses of the Company have gone up in the year 2003
192. The _et P rofit after Tax of XYZ Co.,
Ltd. , is Rs.5,00,000/- and the number of shares of the
Company are 1,00,000. The Market Price of
the Shares of XYZ Co., Ltd., is Rs.200/-. What is the
Price Earning Ratio? [20M01]
a.
5
b. 40
c.
500
d.
2500
193. Ratio measuring the Profitability of a
Company is [20M02]
a.
Current Ratio
b.
Debt-Equity Ratio
c.
Debtors Turnover Ratio
d. Return on Investment
194. Earning Per Share [20M03]
a.
Profit before taxes/No of shares
b. _et Profit after taxes/_o of Shares
c.
Total Investment/No o f share s
d.
No of share s / Total Investment
195. The company has earned a _et Profit
after Tax Rs. 5,00,000/-. The number of shares of the
Company is 50,000/-. The Earning Per Share
is [20M04]
a.
0.1
b.
5
c. 10
d.
2
196. Return on Investment [20S01]
a.
Net Profit before taxes/Total Inve stment
b. _et P rofit after taxes/Total Investment
c.
Total Investment/Net Profit after taxes
d.
Net Profit after taxes Total Investment
197. Return on Assets [20S02]
a.
Net Profit before taxes/Total Inve stment
b. _et P rofit after taxes/Total Tangible
Assets
c.
Total Tangible Assets/Net Pro fit after taxes
d.
Net Profit after taxes - Total Investment
198. Return on Capital Employed = [20S03]
a.
Net Profit before taxes/Total Investment
b.
Net Profit after taxes/Total Tangible Assets
c. Adjusted _et Profits/Capital Employed
d.
Net Profit after ta xes - Total Investment
199. Price Earning Ratio (P/E Ratio) [20S04]
a.
Net Profit before taxes/No o f shares
b.
Net Profit after taxes/No of Shares
c. Market Price/Earning Per Share
d.
No of shares / Total Investment
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