UP TGT COMMERCE 2016
1. The best means of increasing sale of an article is
(a) Exhibition
(b) Fairs
(c) Advertisement
(d) None of these
2. The concept of management by objectives was propagated by:
(a) Herald koontz
(b) Ralph Davis
(c) H.L. Gantt
(d) Peter F Ducker
3. An Auditor makes effort to detect mainly following types of fraud
(a) Misappropriation of cash
(b) Misappropriation of goods
(c) Frauds in books of accounts
(d) All of the above
4. Which of the following is not a social evil of the money
(a) Trade cycles
(b) Fraud
(c) Murders
(d) Corruption
5. Which of the following is not a measure of dispersion ?
(a) Skewness
(b) Standard deviation
(c) Mean deviation
(d) Range
6. In India ‘lender of Last Resort’ is called
Reserve Bank of India
Government of India
NABARD
State Bank of India
7. Planning Commission of India is replaced by
(a) Finance Commission
(b) Indian planning Board
(c) NITI Aayog
(d) NITI panel
8. Classification of data may be
(a) Geographical
(b) Qualitative
(c) Quantitative
(d) All of the above
9. Which of the following is the base for preparing trial balance
(a) Journal
(b) Ledger
(c) Cash Book
(d) Balance sheet
10. Selection of best alternatives is an important step in
(a) Planning
(b) Decision making
(c) Forecasting
(d) Implementation
11. Hawthome experiments was conducted by :
George Elton Mayo
George Elizabeth Mayo
George Ezen Mayo
George Mayo
12. Under vouching, checking is done of
Books of original entry
Final books of accounts
Balance sheet
All of the above
13. The full form of CIF is
Cost, Insurance and Freight
Cost, Insurance and Flight
Company, Insurance and Freight
Company, Investment and Freight
14. Co-ordination involves :
(a) Forecasting
(b) Unity of purpose
(c) Selection of staff
(d) All of these
15. Every company has to file with registrar, a copy of
Articles of Association
Prospectus
Memorandum of Association
None of the above
16. Outstanding Expenses Account is :
Income and Expenditure Account
Nominal Account
Personal Account
Real Account
17. Which of the following statement is true in relation to Indian Agriculture?
(a) Labour productivity is low in agriculture
(b) Land holding size is big
(c) Government procures the whole agricultural produce
(d) All of the above
18. Advertising objectives do not include
(a) Informing consumers
(b) Changing attitudes
(c) Making entertainment
(d) Developing awareness
19. Journal is a book of :
(a) First entry
(b) Original entry
(c) Date wise entry
(d) All of the above
20. Classification on the basis of income, production, weight etc. is known as
(a) Geographical classification
(b) Quantitative classification
(c) Continuous classification
(d) Qualitative classification
21. The partners of a registered firm can file a suit :
(a) Against the firm
(b) Against other partners
(c) Against third parties
(d) All of the above
22. On the admission of a new partner, the increase in the value of an asset is credited to
(a) Profit and Loss Account
(b) Asset Account
(c) Old Partners Capital Account
(d) Revaluation Account
23. Density of population means number of persons per :
(a) Square foot
(b) Square Metre
(c) Square inch
(d) Square kilometer
24. Under which of the cost differences international trade would not take place ? (a) Equal
(b) Comparative
(c) Absolute
(d) All of these
25. In financial accounting, ledger posting is a process of :
(a) Summarising
(b) Classifying
(c) Recording
(d) Interpreting
26. Transferring entries from journal to ledger account is commonly known as
(a) Recording
(b) Transferring
(c) Posting
(d) Entering
27. Advertising can become life and death matter under which market structure ?
(a) Duopoly
(b) Perfect market
(c) Oligopoly
(d) Monopoly
28. The objective of vouching is :
(a) Getting knowledge of business transactions
(b) Getting knowledge of non-business transactions
(c) (a) and (b) both
(d) None of the above
29. Exception to the law of demand is :
(a) Diminishing marginal utility
(b) Giffen paradox
(c) Different uses of products
(d) Price of substitute goods
30. The process that entails a proper and rational distribution of work between the members of the staff of the organisation is called :
(a) Internal Audit
(b) Internal Check
(c) Internal Evaluation
(d) Internal Management
31. When the partnership firm is dissolved, the following account is opened in the books of firm
(a) Revaluation account
(b) Profit and loss adjustment account
(c) Realisation account
(d) Profit and loss appropriation account
32. Tally sheets are used to determine
(a) Class limits
(b) Frequency of each class
(c) Number of classes
(d) Continuous series
33. Personal selling is not targeted towards
(a) Mass audiences
(b) Personal contact
(c) Two way communication
(d) Quick feedback
34. Accounting process does not include :
(a) Recording
(b) Classifying
(c) Simplifying
(d) Summarising
35. The relationship between values of money and general price level is
Direct
Inverse
Indirect
Proportional
36. Which of the following limits the power of credit creation by Commercial Banks ?
Fiscal policy
Banking Laws
REPO rates
Business Pessimism
37. Total of the two sides of account and to find out the difference is called :
(a) Totaling
(b) Trialing
(c) Balancing
(d) Analysing
38. The accounting concept that is used to prepare the Profit and Loss Account is known as :
(a) cost
(b) Realisation
(c) Matching
(d) Disclosure
39. Which of the following is not a function of money
(a) Medium of exchange
(b) Storage of value
(c) Stabilisation of prices
(d) Unit of measurement
40. Personal selling includes :
(a) Oral communication
(b)Face to face interaction
(c) Conversation with customers
(d) All of the above
41. A journal entry, in which two or more accounts are debited/credited, is known as
(a) Double entry
(b) Multi entry
(c) Additional entry
(d) Compound entry
42. “Management is an organ, which can be defined only through functions” – This definition is given by :
(a) Adam Smith
(b) George terry
(c) Peter F. Drucker
(d) Henry Faylo
43. Restricting competition is a :
(a) Unfair trade practice
(b) Monopolistic trade practice
(c) Restrictive trade practice
(d) All of these
44. The salary paid to a clerk Ramesh should be credit to
(a)Ramesh’s Account
(b) Salary Account
(c) Cash Account
(d) Profit and Loss Account
45. System approach is not propagated by :
(a) W.G. Scott
(b) Robert
(c) Peter Drucker
(d) J.D. Thompson
46. The primary function of the book-keeping is to
(a) Designing the system of recording the transactions
(b) Assigning the responsibility to accountant
(c) Recording of financial data
(d) Classifying the recorded data
47. Section 2(36) of Companies Act is related to
Memorandum
Prospectus
Articles
Incorporation
48. Which of the following averages can not be calculated with the help of graphic presentation
(a) Arithmetic mean
(b) Quartiles
(c) Median
(d) Mode
49. Sound pollution arises when sound wave exceeds
(a) 20-30 decibels
(b) 30-40 decibels
(c) 40-50 decibels
(d) None of these
50. Which one of the following is not a part of organised money market ?
(a) Central Bank
(b) Commercial Banks
(c) Indigenous bankers
(d) Regional Rural Banks
51. Cash discount allowed to a debtor should be credited to
(a) Discount Account
(b) Customer’s Account
(c) Sales Account
(d) Purchases Account
52. In the case of hire purchase, assets account is debited with
(a) Hire purchase price
(b) Cash price
(c) Cost price of the seller
(d) None of the above
53. The elasticity of demand at the mid point on a straight demand line is
(a) Zero
(b) Equal to one
(c) More than one
(d) Less than one
54. The effect of surrender of shares is the same as of shares :
(a) Issue
(b) forfeiture
(c) Re- issue
(d) None of these
55. According to traditional approach of money is normal sense includes
(a) Currency
(b) Currency and demand deposits
(c) Currency and banks deposits
(d) All liquid assets
56. A new partner brings in cash as his share of goodwill this amount will be distributed among old partners in :
(a) Old profit sharing ratio
(b) Equal ratio
(c) Ratio of capitals
(d) Sacrifice ratio
57. General rules and regulations for the performance of office work are specified in
(a) Organisations Manual
(b) Office Manual
(c) Organisation Chart
(d) Management Guidelines
58. Which of the following is not an attribute of production function ?
(a) Flow concept
(b) State of technology
(c) Quantity of inputs
(d) State of inputs
59. The return of goods by a customer is debited to :
(a) Sales Return Account
(b) Customer’s Account
(c) Purchases Account
(d) Stock Account
60. In case of ‘installment payment system’ total interest receivable by the seller is credited to
(a) Interest Suspense Account
(b) Interest Account
(c) Sales Account
(d) None of the above
61. Charter party is used
(a) in export rate trade
(b) in import trade
(c) in internal trade
(d) none of these
62. Which statement is false with reference to dead stock of a bank ?
(a) They yield no profit to bank
(b) These include furniture and buildings
(c) These are used to increase reputation
(d) These are non- performing assets
63. One of the problems of India’s foreign Trade is
(a) Payment of importers in rupees
(b) Increasing quantity of exports
(c) Unfavorable terms of trade
(d) None of the above
64. 1991 crisis in India economy was originated from
(a) Domestic sector
(b) External sector
(c) Both (a) and (b)
(d) None of these
65. Which one of the following is not a part of Hawthorne experiments ? Illumination
Mass interviewing
Bank wiring observation room
Mass assembly room
66. Which one of the following is relative measure of dispersion
(a) Mean deviation
(b) Standard deviation
(c) Coefficient of variation
(d) Variance
67. With the help of Ogive curve, we can estimate :
Arithmetic mean
Mode
Median
All of the above
68. Cash withdrawn by the proprietor for his personal use should be debited to
(a) Sales account
(b) Capital account
(c) Drawings account
(d) Both (b) and (c)
69. Nearness of near money depends on
(a) Legality
(b) Profitability
(c) Validity
(d) Liquidity
70. A cash discount received is entered on the three column cash book on :
Debit side
Credit side
No Entry is made
Written as a note
71. Which one of the following statements is not true ?
(a)In the absence of partnership deed profit and loss is distributed among partners in equal ratio.
(b) Minor partner can get his share of profit .
(c) The relation between partners are created through deed .
(d) Registration of partnership is compulsory.
72. One of the following is a feature of perfect market structure
(a) Entry barriers
(b) Interdependence
(c) Absence of selling costs
(d) Non- price competition
73. Mc Gregor has propounded
(a) Theory X
(b) Theory Y
(c) Theory ‘X’ and theory ‘Y’ both
(d) None of the above
74. Which one of the following statements is not true ?
(a) The job of book-keeping is analytical in nature
(b) Book-keeping is an art as well as a science of recording business transactions. (c) Transactions are recorded in a certain set of books.
(d) Book-keeping is the method of recording in account books.
75. Demand of furniture is a
Consumer’s demand
Durable demand
Producer’s demand
Both (a) and (b)
76. After re-issue of forfeited shares balance of share forfeiture account is transferred to :
(a) General Reserve Account
(b) Profit and Loss Account
(c) Security Premium Account
(d) Capital Reserve Account
77. Which one of the following statement is not true ?
(a) The object of trial balance is to test the accuracy of the books .
(b) Trial balance provides basis for preparation of final accounts .
(c) Errors of principals do not affect the agreement of the trial balance .
(d) Compensatory errors are also known as equalising errors.
78. Mr. ‘X’ is marketing manager of TCS. He is
(a) First level manager
(b) Middle level manager
(c) Top level manager
(d) None of the above
79. M/s Stationery Mart will debit the purchase stationery to :
General Expenses A/c
Purchases A/c
Stationery A/c
None of the above
80. The main objective of Book-keeping is to :
(a) Find out profit or loss
(b) Keep correct and complete record of business transactions
(c) Show the correct position of assets and liabilities
(d) Examine the accuracy of business transactions
81. Revenue from sale of products ordinarily reported as part of earning in the period in which :
(a) The sale is made
(b) The cash is collected
(c) The order is received
(d) The cheque is received
82. Which one of the following is a feature of monopolistic competition ?
(a) Heavy advertisement
(b) Non-price competition
(c) Interdependent firms
(d) Price competition
83. Break even analysis is also known as :
(a) Cost volume profit analysis
(b) Cost benefit analysis
(c) Incremental analysis
(d) None of these
84. Which one of the following errors affect the trial balance ?
(a) A bill receivable, received from P for Rs. 1,200 was found entered in the Bills Payable Day Book as Rs. 2,100
(b) A sum of Rs. 300 received from the estate of an insolvent debtor was found credited to his account which was already written of as bad.
(c) Rs. 800 owned by a debtor was committed to be included in the schedule of debtors
(d) Old machinery sold on credit for Rs. 700, was passed through the sales book.
85. If credit side of a bank account is greater than debit side, it indicates :
Bank overdraft
Cash at bank
Bank balance
Current asset
86. Sale of furniture by a furniture dealer for cash is debited to :
(a) Cash account
(b) Sales account
(c) Furniture account
(d) None of the above
87. Value of money refers to
(a) Gold purchased by money
(b) General purchasing power of money
(c) Demand for money
(d) Value intrinsic in money
88. Who is called father of Economics ?
(a) Max Muller
(b) Carl Marx
(c) Adam Smith
(d) Samuelson
89. Shortworking means
(a) Excess of minimum rent over royalty
(b) Excess of royalty over minimum rent
(c) Surplus of royalty
(d) Excess of actual rent over minimum rent
90. The contribution of agriculture to Indian economy is
Increasing
Decreasing
Constant
None of these
91. Sales book is a record of :
(a) Only cash sales of goods
(b) Only sales of assets
(c) Only credit sales of goods
(d) All sales
92. Which of the following document is not relevant for vouching cash sales ?
(a) Daily cash sales summary
(b) Monthly statements sent to customers
(c) Salesmen’s statement
(d) Bank statement
93. The amount spent to increase the earning capacity of a business is :
(a) Capital loss
(b) Deferred revenue expenditure
(c) Revenue expenses
(d) Capital expenditure
94. “Money is the pivot around which the economic science clusters” this statement was stated by :
(a) Adam Smith
(b) Alfred Marshal
(c) J.M. Keynes
(d) Koutilya
95. In which market structure, the demand is perfectly elastic ?
(a) Duopoly
(b) Perfect competition
(c) Monopoly
(d) Oligopoly
96. “Bad money drives good money out of circulation” The propounder of this statement was :
(a) J. M. Keynes
(b) Thomas Gresham
(c) Samuelson
(d) Crowther
97. Utility derived from consumption of an additional unit of a good is called
(a) Total utility
(b) Marginal utility
(c) Additional utility
(d) Derived utility
98. Vouching is concerned with :
(a) Verification of authority and authenticity of transaction
(b) Validity of documentary evidences
(c) Accuracy of recorded entries and postings in books
(d) All of above
99. Which of the following is not a method of collecting primary data ?
(a) Direct interview
(b) Indirect interview
(c) National publications
(d) Questionnaire method
100. Which one of the following is not a clerical error ?
Error of omission
Error of commission
Error of principal
Compensating error
101. Part of capital which can be called-up at the time of winding of company is called :
(a) Reserve capital
(b) Uncalled capital
(c) Issued capital
(d) Authorised capital
102. Latin word “audire” means
(a) To adjust
(b) To dare
(c) To hear
(d) To here
103. Which is not the objective of Auditing ?
(a) Recording of original entries
(b) Verification of financial statements
(c) Detection of errors
(d) Detection of roads frauds
104. In a company, internal Auditors is appointed by :
Board of Directors
Shareholders
Government
Creditors
105. Under Royalty Accounts, if there is strike for a certain period then :
(a) Royalty is reduced proportionally
(b) Shortworking is reduced proportionally
(c) Minimum rent is reduced proportionally
(d) All of the above
106. When subsidiary books are maintained, the entry for special discounts to customers is done in :
(a) Journal
(b) Sales book
(c) Cash book
(d) None of these
107. A scheme of work to be done by the auditor is called :
(a) Audit system
(b) Audit survey
(c) Audit program
(d) Audit guidelines
108. The middle value of an ordered array of numbers is the
(a) Mode
(b) Mean
(c) Median
(d) Quartile
109. The surplus of deficit revealed by income and expenditure account is transferred to
(a) Receipts and payments account
(b) Profit and loss account
(c) Capital account
(d) Capital fund
110. ‘Management is the function of executive leadership everywhere’- This definition is given by :
(a) P. Kotler
(b) H. Koontz
(c) R. C. Davis
(d) O Donnel
111. Which one of the following error do not affect the agreement of trial balance? (a) Casting and posting errors
(b) Amount omitted from trial balance
(c) Recording of asset as expense
(d) Omission of an entry into ladger
112. Auditor gives report on :
(a) Truthfulness of accounts
(b) Fairness of accounts
(c) Validity of accounts
(d) All of these
113. Which media is useful to for illiterate consumers ?
(a) Print media
(b) Broadcast media
(c) Posters Hoardings
(d) Transit means
114. The relationship between rate of inputs of productive services and the rate of output is known as :
Production function
Utility function
Supply functional
Non of these
115. In a questionnaire, how many answers should be the there for simple alternative questions ?
(a) Three
(b) Two
(c) No
(d) Many
116. The persons who sign the Memorandum of Association of a company are called :
(a) Shareholders
(b) Directors
(c) Subscribers of Memorandum of Association
(d) Promoters
117. Law of Demand states that :
(a) There is always a direct relationship between price and quantity demanded
(b) There is always an inverse relationship between price and quantity demanded
(c) There is always a direct relationship between desire and demand
(d) There is no relationship between price and quantity demanded
118. “Money is what money does” who said this ?
(a) Walker
(b) Robertson
(c) Crowther
(d) Paul Einzig
119. The purpose of ledger is to
(a) Classify the transactions
(b) Grouping the transactions
(c) Find balance in each account
(d) All of the above
120. The unfavourable balance of Profit and Loss Account should be :
(a) Added in liabilities
(b) Subtracted from assets
(c) Subtracted from capital
(d) None of the above
121. The law of diminishing marginal utility was propagated by :
(a) H.H.Gossen
(b) Alfred Marshall
(c) Gossen and Marshall
(d) None of these
122. On dissolution of a firm, the balance of provision for Bad Debts Account is transferred to
General Reserve Account
Debtors Account
Realisation Account
Partner’s Capital Account
223. Which one of the following is not an objective of auditing
Detection of errors
Verification of accounts
Punishment of frauds
Preventions of frauds
124. Which of the following statements is true ?
(a) When the total utility is maximum marginal utility is zero
(b) When total utility decreases, marginal utility remains constant
(c) Total utility and marginal utility are not inter related
(d) All of the above
125. Which among the following is a function of modern office ?
(a) Receiving Information
(b) Giving Information
(c) Public Relations
(d) All of the above