- According to which concept, the owner of an enterprise pays the “interest on drawings”?
(A) Conservatism concept
(B) Dual aspect concept
(C) Entity concept
(D) Accrual concept - Which of the following account balance will not be transferred to realisation account?
(A) Provision for Bad Debts Account
(B) Debtors Account
(C) Building Account
(D) Cash and Bank Account - Minority shareholder’s interest includes-
(A) Share in share capital
(B) Share in capital profit
(C) Share in revenue profit
(D) All of the above - The costing method in which fixed factory overheads are added to inventory is –
(A) Process costing method
(B) Activity based costing method
(C) Marginal costing method
(D) Standard costing method - Which budget is prepared first of all?
(A) Cash Budget
(B) Master Budget
(C) Budget for key factor
(D) Flexible Budget - Standard Quantity of material – 2000 kg @ Rs.10 per kg Actual Quantity of material – 2100 kg of Rs.20580 Material cost variance will be –
(A) Rs.580 Favourable
(B) Rs.580 Adverse
(C) Rs.420 Favourable
(D) Rs.420 Adverse - Kaizen costing is applied to a product that is –
(A) Produced
(B) Under production
(C) Targeted to be produced
(D) Sold to customer - If current ratio is 2:1 and working capital is Rs.60,000, then find the amount of current assets –
(A) Rs.60,000
(B) Rs.1,00,000
(C) Rs.1,20,000
(D) Rs.1,80,000 - Which of the following is not a cash outflow?
(A) Increase in Creditors
(B) Increase in Debtors
(C) Increase in Stock
(D) Increase in bills receivable - Cash flow statement is useful for financial planning –
(A) Short term
(B) Long term
(C) Short term as well as Long term
(D) None of the above - From the following, find the number of units for getting a profit of Rs.80,000 – Selling price per unit Rs.25 Variable production costs per unit Rs.12 Variable selling costs per unit Rs.3 Fixed Factory Overheads Rs.5,00,000 Fixed Selling Overheads Rs.3,00,000
(A) 60,000 units
(B) 88,000 units
(C) 98,000 units
(D) 1,00,000 units - Which of the following is/are technique(s) of obtaining audit evidence?
(A) Confirmation
(B) Computation
(C) Analytical review
(D) All of the above - Management audit is done by –
(A) Chartered Accountant
(B) Company Secretary
(C) Manager
(D) Any qualified person - In which audit, the examination of the effects of water and soil pollution etc. is done?
(A) Management Audit
(B) Energy Audit
(C) Environmental Audit
(D) Safety Audit - Safety audit is mandatory for –
(A) Manufacturing industries
(B) Hazardous industries
(C) Textile industries
(D) Mining industries - Which of the following is/ are an external source of finance?
(A) Lease financing
(B) Equity shares
(C) Retained Earnings
(D) All of these - Operating leases are mostly ……….. agreements.
(A) Long Term
(B) Medium Term
(C) Short Term
(D) Verbal - Which is not the technique of Capital Structure Analysis?
(A) Trading on Equity
(B) Capital Gearing
(C) Capital Budgeting
(D) Cost of Capital - If net present value is positive, then internal rate of return will be –
(A) Positive
(B) K = R
(C) Negative
(D) K < R - Discounted cash flow criteria for investment appraisal does not include-
(A) Net Present Value
(B) Benefit Cost Ratio
(C) Accounting Rate of Return
(D) Internal Rate of Return - What is the formula of first method for calculating Maximum Permissible Bank Finance under Tandon Committee?
(A) 75% (CA – CL)
(B) 75% CA – CL
(C) CA – CL
(D) CA – 75% CL - The rate of dividend on preference share is decided at the time of
(A) Issue
(B) Dissolution of Company
(C) Payment
(D) None of these - The immediate exchange of one currency for another is a –
(A) Forward Transaction
(B) Spot Transaction
(C) Money Transaction
(D) Exchange Transaction - Which of the following financial asset is /are traded in international financial market?
(A) Bonds
(B) Stocks
(C) Derivatives
(D) All of the above - Which technique is commonly used to estimate the cash flow in multinational capital budgeting?
(A) Net Present Value method
(B) Internal Rate of Return method
(C) Exchange Rate value method
(D) Discounted future value method - The relationship between Mean,Median and Mode is –
(A) 2 Mean = 3 Median – Mode
(B) Mean=(3 Median – Mode)/2
(C) (Median = 2 Mean + Mode)/3
(D) All of the above - If a Quartile Deviation is 10, then Standard Deviation will be –
(A) 8.33
(B) 8
(C) 15
(D) 6.67 - If regression coefficient x on y= -1.2 y and regression coefficient y on x = – 0.3x, then correlation will be –
(A) – 0.6
(B) + 0.6
(C) – 0.36
(D) – 0.18 - The probability of 53 Sundays in a non-leap year is –
(A) (2)/7
(B)(1)/52
(C) (1)/7
(D) None of the above - The probability of binomial distribution is –
(A) (1)/6
(B) (1)/4
(C) (1)/2
(D) 1 - In a Poisson distribution p(x = 1) = p(x = 2), then the variance will be –
(A) 2
(B) 1.414
(C) 1
(D) 0 - In a normal distribution with μx = 28 and σ = 100, the value of z corresponding to x = 30 will be –
(A) 2
(B) 0.2
(C) 0.1071
(D) 2.8 - The standard deviation of ‘N’ natural numbers 1 to 5 will be –
(A) 2.236
(B) 1
(C) 1.414
(D) 25 - The total area of a normal distribution between the average value ±1.96 of standard deviation is –
(A) 95.45%
(B) 95%
(C) 99%
(D) 68.34% - ‘Z’ Test is better used when sample size is –
(A) Less than 30
(B) Equal to 30
(C) More than 30
(D) Infinitely large - According to Kruskal – Wallis H – test, variable should be measured with-
(A) Discontinuous level
(B) Continuous level
(C) (A) and (B) both
(D) Neither (A) nor (B) - Consider the following tests – 1. Z – test 2. T – test 3. F – test 4. Chi – square test The concept of Degrees of Freedom is associated with –
(A) Both 1 and 2
(B) Both 2 and 3
(C) Both 3 and 4
(D) 2, 3 and 4 - Yates correction will be applied in chi-square value when cell frequencies are –
(A) Large
(B) Small
(C) Uniform
(D) None of these - Mann-Whitney U – test uses which of the following function?
(A) U = min (Uy, Uy)
(B) U = max (Ux, Ux)
(C) U = max (Ux, Uy)
(D) U = min (Ux, Uy) 
- A citizen of India, who goes abroad for the purpose of employment must stay in India to become resident for at least-
(A) 182 days
(B) 90 days
(C) 60 days
(D) 180 days - Tax is computed on agricultural income, when –
(A) Agricultural income is more than `5,000
(B) Total non – agricultural income is more than Income Tax exemption limit
(C) When both (A) and (B) happen together
(D) None of the above - Which of the following statement is true?
1. The tax rate on STCG is 10%.
2. The tax rate on LTCG is 15%.
3. The tax rate on casual income is 30%.
4. The tax rate on dividend received from domestic company is 10%.
Codes –
(A) 1 and 2 are true.
(B) 2 and 4 are true.
(C) 3 and 4 are true.
(D) All statements are true. - X donated Rs.2,00,000 to a charitable institution u/s 80G during the financial year 2019-20. His total income during the period was Rs.1,80,000. How much deduction he can claim u/s 80G ?
(A) Rs.90,000
(B) Rs.1,00,000
(C) Rs.1,80,000
(D) Rs.2,00,000 - The value of free accommodation in Delhi provided by the employer in private sector is –
(A) 10% of salary
(B) 15% of salary
(C) 20% of salary
(D) 25% of salary - Tax ………….. takes into account the loopholes of law.
(A) Planning
(B) Management
(C) Evasion
(D) Avoidance - Gratuity received by a government employee is –
(A) Exempted up to Rs.3,00,000
(B) Exempted up to Rs.10,00,000
(C) Fully exempted
(D) Fully taxable - A loss in business is suffered due to –
(A) Fall in demand
(B) High rate of taxes
(C) Change in technology
(D) All of these - Which of the following capital expenditure is not allowed deduction?
(A) Purchase of machinery
(B) Purchase of furniture
(C) Purchase of land
(D) Repairing - Surcharge is payable by an individual where the total income exceeds –
(A) Rs.10 lakhs
(B) Rs.25 lakhs
(C) Rs.50 lakhs
(D) Rs. 1 croreAnswer Key
1 (c) 2 (c) 3 (d) 4 (b) 5 (c) 6 (c) 7 (b) 8 (c) 9 (a) 10 (a) 11 (b) 12 (d) 13 (d) 14 (c) 15 (b) 16 (a) 17 (c) 18 (c) 19 (d) 20 (b) 21 (a) 22 (a) 23 (b) 24 (d) 25 (a) 26 (d) 27 (c) 28 (a) 29 (c) 30 (c) 31 (a) 32 (b) 33 (c) 34 (b) 35 (c) 36 (b) 37 (d) 38 (b) 39 (c) 40 (c) 41 (a) 42 (c) 43 (c) 44 (a) 45 (b) 46 (b) 47 (c) 48 (d) 49 (c) 50 (c)