- In case of admission of a partner,sacrificing ratio is used to distribute:
(a) Reserve
(b) Good will
(c) Revaluation & Profit & Loss
(d) Capital - Basel Accord is relate to
(a) Banking
(b) Technology
(c) Insurance
(d) Corporate growth - Howthrone studies belongs to
(a) Classical approach
(b) Behaviour approach
(c) Systems approach
(d) Situational approach - In financial decision making,an outlay which is incurred irrevocably in the past is called
(a) Opportunity cost
(b) Time-Value
(c) Sunk cost
(d) Relevent cost - Given below are two statements:
Statements I: Functional managers discharge functional responsibilities depending upon their specialization.
Statements II: Managerial activities like planning,organising,directing and controlling are the same for both general and financial managers.
In the light of the above statements,choose the most appropriate answer from the options given below:
(a) Both statements I and II are correct
(b) Both statements I and II are incorrect
(c) Statements I is correct but statements II is incorrect
(d) Statements I is incorrect but statements II is correct - In departmental accounting,carriage outward expenses should be divided in different departments on the basis of_____.
(a) Sales ratio
(b) Purchase value
(c) Floor area
(d) Electric points - The amount of share premium can be used for:
(a) Writing off the discount on debentures and preliminary expenses
(b) Paying the premium on redemption of preference shares
(c) Issuing bonus shares
(d) All of these - Modigilani and Miller approach to the capital structures decision is based on which of the following assumptions?
(a) Perfect capital markets
(b) Homogeneous expectations
(c) Investors rationality
(d) All of these - According to which concept,the proprietor of the business is considered as a creditor of the business:
(a) Cost concept
(b) Separate entity concept
(c) Account period concept
(d) Dual aspect concept - Given below are two statements:
Statements I: Consequent to bonus issue, shareholders proportional ownership remains uncharged.
Statements II : Consequent to bonus issue book value per share,earning per share and the market price of share decreases.
In the light of the above statements,choose the most appropriate answer from the options given below:
(a) Both statements I and II are correct
(b) Both statements I and II are incorrect
(c) Statements I is correct but II is incorrect
(d) Statements I is incorrect but II is correct - Match list I with List II
List I List II A. Minimum level I. Re-order level+Re-order quantity-(minimum consumption X minimum re-order period) B. Danger level II. Minimum level + 1/2 (Re-order quantity) C. Average level III. Re-order level – (normal consumption X normal re-order period) D. Maximum level IV. Average consumption X maximum re-order period for emergency purpose. Choose the correct answer from the options given below:
(a) A-I,B-III,C-II,D-IV
(b) A-IV,B-II,C-I,D-III
(c) A-III,B-I,C-II,D-IV
(d) A-IV,B-III,C-I,D-II - Agriculture income from land situated in Canada and received in India during the previous year is taxable for
(a) Ordinary Resident, Not Ordinary resident and non-resident
(b) Ordinary resident and not ordinary resident
(c) Ordinary resident
(d) Not ordinary resident - Which of the following sectors qualities for the priority sector lending (PSL) in India?
(a) Agriculture
(b) Micro,small and Medium enterprises(MSME)
(c) Social Infrastructure
(d) All of these - Paper money does not posses which of the following property?
(a) Acceptability
(b) Durability
(c) Divisibility
(d) Portability - The different factor between the gross domestic product(GDP) and net domestic product(NDP)is_______.
(a) Factor and market prices
(b) Indirect taxes and subsidies
(c) Imports and exports
(d) Capital consumption allowance - In India on which of the following sectors maximum people depend for their living and living and livelihood?
(a) Agriculture
(b) Industries
(c) Serving
(d) Foreign - In the question MV=PT,V represents_____.
(a) Value of money
(b) Velocity of money circulation
(c) Variation in national income
(d) Variation in price level - Match List I with List II
List I Financial Theories List II Descriptions A. Efficient market theory I.Determination of the prices of contingent claims. B. Portfolio theory II. Determination of asset prices under conditions of uncertainly. C. Capital asset pricing theory III. Formation/Construction of optional portfolio of securities. D. Option pricing theory IV. Analysis of how prices change over time in speculation markets. Choose the correct answer from the options given below:
(a) A-I,B-II,C-III,D-IV
(b) A-III,B-I,C-IV,D-II
(c) A-IV,B-III,C-I,D-II
(d) A-II,B-IV,C-I,D-III - Which one of the following is not a function of money?
(a) Store of value
(b) Medium of exchange
(c) Means of barter
(d) Standard of differed payment - When demand of a product is elastic (with a price elasticity greater then I),with every increase in product price total revenue______.
(a) Increase
(b) Decrease
(c) Remains same
(d) Becomes negative - International financial reporting standard are issued by
(a) FASB
(b) IASB
(c) IMF
(d) IFC - After re-issue of forfeited shares,the balance of the forfeited share account is transferred to:
(a) Profit & Loss A/c
(b) Share Capital
(c) Balance sheet
(d) Capital reserve - Rupee one note is called fiat money because______.
(a) It is issue with authority of government
(b) It is convertible into gold
(c) It is unable to be duplicated
(d) It can be easily printed - Managers normally perform managerial functions in which of the following orders?
(a) Planning,Organising,Leading,Controlling
(b) Organising,Planning,Controlling,leading
(c) Organising,Leading,planning,controlling
(d) Planning,organising,controlling,leading - A private company which is subsidiary of a public company is treated as:
(a) Dormant company
(b) Private company
(c) Holding company
(d) Public company - How frequently financial market committee meets at the RBI to review liquidity conditions
(a) Weakly
(b) Fornightly
(c) Quarterly
(d) Daily - A financial institution which offers services relating to management and financing of debts arising from credit sales is called______.
(a) Factor
(b) Transfer agent
(c) Broker
(d) Lender - Installment system is governed by:
(a) Sale of goods Act
(b) Hire purchase Act
(c) Contract Act
(d) Installment Act - In which kind of market forms it become very essential to advertise for firms?
(a) Perfect competition
(b) Monopoly
(c) Monoplistic markets
(d) Oligopolistic markets
Choose the correct answer from the options given below:
(a) a and b only
(b) b and c only
(c) c and d only
(d) a and d only - When two or more cement manufacturing companies combine it is a case of
(a) Vertical combination
(b) Horizontal combination
(c) Lateral combination
(d) Diagonal combination - Which one of the following is true:
(a) All agreements are contract
(b) All contract are agreements
(c) All promises are contract
(d) All consents are contract - Two goods for which an increase in the price of one leads to an increase in the demand for the other are called____.
(a) Substitutes
(b) Inferior goods
(c) Normal goods
(d) Complementary goods - Amount of depreciation charged on plant and machinery will be debited to
(a) Repairs account
(b) Profit & Loss A/c
(c) Depreciation A/c
(d) Plant and machinery A/c - A negotiable instrument drawn in favor of a minor is
(a) Valid
(b) Void
(c) Illegal
(d) Quasi contract 
- When the account of all departments are maintained together,it is known as:
(a) Unitary method
(b) Perfect method
(c) Dependent method
(d) Columnar form - Which of the following conditions must be met to be a ‘holder in due course’
(a) The holder has paid the consideration
(b) The holder has taken the instrument before the maturity period.
(c) The holder has taken it in good faith without any doubt.
(d) All of these - Test check reduces the:
(a) Work of the auditor
(b) Liability of the auditor
(c) Work and liability both
(d) None of these - Successful implementation of just-in-time inventory system requires
(a) Strong and dependable relationship with suppliers
(b) Reliable transportation system
(c) Conveniently located docks and storage areas
(d) Geographic proximity to the manufacturing facility
(e) Efficient credit and collection policy
Choose the correct answer from the options given below:
(a) a,b and c only
(b) b,c, and d only
(c) c,d and e only
(d) a,b,c,and d only - If the rate of interest is 12 per cent,how long it will take to double the money depositor?
(a) 6 years
(b) 9 years
(c) 9 years
(d) Insufficient information
Choose the correct answer from the options given below:
(a) a only
(b) b only
(c) c only
(d) d only - Question
- Given below are two statements:
Statements I: Management theory cannot show up the same results every time it is used or tested.
Statements II: Management has to deal with human behaviour,which is highly unpredictable
In the light of the above statements choose the most appropriate answer from the options given below:
(a) Both a and r are correct and r is the correct explanation of a
(b) Both a and r are correct but r is not the correct explanation of a
(c) a is correct but r is not correct
(d) a is not correct but r is correct - Which of the following is a capital item?
(a) Purchase of goods
(b) Purchase of machinery
(c) Payment of salary
(d) Payment of internet charge - The concept of ‘cost centre’s is related to-
(a) Responsibility accounting
(b) Social accounting
(c) Environmental accounting
(d) Intlation accounting - The risk-free return is 8% and the expected return on market portfolio is 12%,If the required return on a stock is 15% what is its beta?
(a) 1.25
(b) 0.75
(c) 1.75
(d) 1.50 - The basis objective of business combination is sustained profitable growths of the combining enterprise.this objective is realized by
(a) Achieving economics of scale
(b) Reducing competition
(c) Preventing the entry of new firms and controlling the market
(d) All of these - Risk in capital budgeting decision is analysed using techniques such as_____.
(a) Risk adjusted discount rate
(b) Decision-tree approach
(c) Sensitivity analysis
(d) Scenario analysis
(e) Opportunity cost analysis
choose the correct answer from the options given below:
(a) a,b and c only
(b) c,d and e only
(c) a,b,c and d only
(d) b,c,d and e only - Given below are two statements:one is labelled as assertion A and other is labelled as reason R
Assertion A: An efficient market is one in which price of a security is an unbiased estimate of its intrinsic value.
Reason R: An efficient market logic argue that price can deviate from the intrinsic value but the deviations are random and uncorrelated with any observable variable.
In the light of the above statements,choose the most appropriate answer from the options give below:
(a) Both A and R are correct and R is the correct explanation of A
(b) Both A and R are correct but R is not the correct explanation of A
(c) A is correct but R is not correct
(d) A is not correct but R is correct - Which one of the following is partly a taxable allowance?
(a) Lunch allowance
(b) Fixed medical allowance
(c) Project allowance
(d) None of these - Goodwill is :
(a) Fictitious assets
(b) Current assets
(c) Liquid assets
(d) None of these - Match List I with List II
List I Financial markets List II Descriptions A.Primary market I.Where investors trade outstanding financial claims. B.Secondary market II.Where the delivery occurs at a predetermined time in future. C. Spot market III.Where issues sells new financial claims. D.Forward or futures market IV.Where the delivery occurs immediately Choose the correct answer from the options given below:
(a) A-III,B-I,C-II,D-IV
(b) A-II,B-IV,C-III,D-I
(c) A-III,B-I,C-IV,D-II
(d) A-IV,B-II,C-III,D-I - Expenditure incurred to increase the seating capacity of a cinema hall is a:
(a) Revenue expenditure
(b) Capital expenditure
(c) Deferred revenue expenditure
(d) Deferred capital expenditure - Given below are two statements:
Statements I: If marginal revenue is greater than marginal cost,the firm showed increase its input.
Statements II: If marginal cost is greater than marginal revenue,the firm should increase its output.
In the light of the above statements,choose the most appropriate answer from the options given below
(a) Both statements I and II are correct
(b) Both statements I and II are incorrect
(c) Statements I is correct but Statements II is Incorrect
(d) Statements I is incorrect but Statements II is correct - What is the economic order quantity(EOQ) for a firm having annual sales=20,000 units,fixed cost per order=Rs.2,000 purchase limit per unit=Rs.12 and carrying cost=25 percent of inventory value?
(a) 3164 units
(b) 5164 units
(c) 6431 units
(d) 4146 units - In the Baumol-Tobin analysis,the transaction demand for money is
(a) Positive related to the level of income
(b) Negative related to the level of interest rates
(c) Negative related to the expected return on other assets
(d) All of the above - Which one of the following is the odd one out
(a) Amalgamated companies
(b) Holding company
(c) Merger
(d) Community of Interest - With reference of partnership which one of the following statements about a minor is correct?
(a) A minor can in no case be a partner in a firm
(b) Of all the partners in a partnership firm,only one can be a minor partner
(c) A minor can be admitted only to the benefits of partnership firm
(d) A minor can be admitted only as a secret partner - Accounting for amalgamation of companies is governed by
(a) AS 13
(b) AS 14
(c) AS 16
(d) AS 24 - Question No.83
- The Underlying assumption in IRR method of capital budgeting is that intermediate cash flows are invest at________.
(a) Cost of capital
(b) Internal rate of return
(c) Market rate of return
(d) Risk less rate of return - Match List I with List II
List I List II A. Amalgamative I. Promotion of business introvert B. Association II. Regulate and manipulate prices C. Trusts III. Partial consolidation D. Cartels IV. New entity Choose the correct answer from the options given below:
(a) A-IV,B-I,C-III,D-II
(b) A-I,B-II,C-III,D-IV
(c) A-III,B-IV,C-II,D-I
(d) A-II,B-I,C-III,D-IV - Which of the following is not a current liability:
(a) Minority interest
(b) Unclaimed dividends
(c) Bills payable
(d) Bank overdraft - Validity period for the presentation of cheque in a bank is
(a) 3 months
(b) 6 months
(c) 1 years
(d) 2 years - Fishers quantity theory of money suggests that the demand fees money is
(a) Purely a function of income,and interest rates have no effect on the demand for money
(b) Purely a function of interest rates, and income has no effect on the demand for money
(c) Purely a function of government spending and interest rates have no effect on the demand for money.
(d) Purely a function of expectations,and income has no effect on the demand for money. - Under inflationary period,the LIFO method will give:
(a) Lower cost of goods sold
(b) Higher profit
(c) Higher closing stock
(d) None of these - Match List I with List II
List I(Depreciation method) List II (Formula) A.Royalty I.Re-possession of goods B. Branch account II.Stock and debtors method C.Hire vendor III.Dead rent D.Branch adjustment IV.Remittance in transit Choose the correct answer from the options given below:
(a) A-III,B-II,C-I,D-IV
(b) A-I,B-IV,C-II,D-III
(c) A-II,B-IV,C-III,D-I
(d) A-IV,B-I,C-III,D-II - Which of the following activities facilitate and promote speedier cash collection?
A. Lock box system
B. Concentration banking
C. Centralised collection
D. Centralised payments
E. Decentralised payments
Choose the correct answer from the options given below:
(a) A and B only
(b) C and D only
(c) D and E only
(d) C and E only - The rates of income tax are specified in
(a) Income tax Act,1961
(b) Income tax rules
(c) Annual finance Act
(d) Circulars & Notifications - Omega’s equity stock is currently selling at Rs.80 per share. its last dividend was Rs.2.80 and the divident per share is expected to grow at a rate of 10 per cent in future. What is the cost of equity of Omega as per dividend discount model?
(a) 12.8 per cent
(b) 13.5 per cent
(c) 13.85 per cent
(d) 11.8 per cent - Which of the following are discounted cash flow methods of capital budgeting?
A. Payback period method
B. Accounting rate of return method
C. Net present value method
D.Internal rate of return method
E. Benefit cost ratio method
Choose the correct answer from the options give below:
(a) A,B and c only
(b) C,D and E only
(c) B,C and D only
(d) A,B and C only - If employer contributes more than 12% of salary in _____than it is taxable.
(a) Recognised PF
(b) Unrecognised PF
(c) Statutory PF
(d) Public PF - In line organization order flows
(a) From left to right
(b) From Right to left
(c) From bottom to top
(d) From top to bottom - Motives of holding cash as articulated by J M keynes are__
(a) Transaction motive
(b) Precautionary motive
(c) Speculative motive
(d) All of these - The possible number of interaction between a manager and his four subordinater according to Graicumar is
(a) 44
(b) 54
(c) 24
(d) 34 - Under stock and debtors method of branch accounting the head office opens______.
(a) Branch debtors account
(b) Branch creditors account
(c) Branch adjustment account
(d) Branch cash account - The Doctrine of indoor management is a protection that is available to
(a) Shareholders
(b) Board of directors
(c) Outsiders who deal with the company
(d) Creditors - Given below are two statements:
Statements I: Large and more complex organisation normally prefer line organisation structure.
Statements II: Small organisation usually prefer line staff organisation structure.
In the light of the above statements,choose the most appropriate answer from the options given below
(a) Both statements I and II are correct
(b) Both statements I and II are incorrect
(c) Statements I is correct but II is incorrect
(d) Statements I is incorrect but II is correct - section 2(a) of Income tax deals with
(a) Assessment year
(b) Previous year
(c) Person
(d) Assessee 
- Management by objective (MBO) was popularized by
(a) Max Weber
(b) Peter F Drucker
(c) F.W. Taylor
(d) Herry Fayol - In the equation PY=MV shewing quantity theory of money wherein Y represents____.
(a) National income
(b) Tax revenue
(c) Consumption
(d) Public spending - Advantages of line organisation are
(a) Scalar chain of command flows top to bottom
(b) Scope for specialized function
(c) Prompt decision
(d) Simplest method of administration
choose the correct answer from the options given below
(a) a and b only
(b) a,b and c only
(c) a,b,c and d only
(d) a,c and d only - Sequence the following stages in operating cycle of a business firm.
A. Raw material stage
B. Finished goods inventory stage
C. work in process stage
D. Debtor collection stage
Choose the correct answer from the options given below:
(a) A,C,B,D
(b) D,A,B,C
(c) A,B,C,D
(d) D,A,C,B - In order to convert a private company into public company,alteration is required in____of memorandum of association.
(a) Name clause
(b) Capital clause
(c) Domicile status
(d) Object clause
Choose the correct answer from the options given below:
(a) a and b only
(b) b and c only
(c) c and a only
(d) a and d only - Speculative demand for money depends upon_____.
(a) Income
(b) Consumption
(c) Investment
(d) Interest rate - The FIFO method is advisable when:
(a) Prices are rising
(b) Prices are falling
(c) Prices are constant
(d) None of these - Cost of good sold is equal to:
(a) Opening Stock + Closing stock + Purchase
(b) Sales – Purchase + Opening stock
(c) Opening sock + Purchase – Closing stock
(d) None of these - The Indian accounting standards was notified under which section of companies Act,2013
(a) Section 311
(b) Section 62
(c) Section 133
(d) Section 132 - Depreciation on machinery should be divided between pre-and post incorporation period in:
(a) Sales Ratio
(b) Time ratio
(c) Capital ratio
(d) Profit ratio - Variable cost refers to:
(a) A cost that varies per unit
(b) A cost that is fixed per unit
(c) A cost that fluctuates
(d) None of these - Which one of the following variable is not desired to determine expected return on market portfolio?
(a) Risk less return
(b) Systematic risk
(c) Required return on stock
(d) Opportunity cost/ return - To test the significant difference between two sample means based on small independent samples for normal distributions which test is used?
(a) x2 – test
(b) t – test
(c) F – test
(d) Z – test - Liquid assets include:
(a) Stock
(b) Furniture
(c) Plant and machinery
(d) None of the above - On the job training methods include
A. Appointiceship Programmer
B. Coaching
C. Vertibule training
D. Job rotation
choose the correct answer from the options given below:
(a) A,C,D only
(b) A,B,C only
(c) A,B,E only
(d) A,D,E only - For the given distribution of marks
Class 15-20 20-25 25-30 30-35 35-40 Frequency 1 5 7 3 2 The number of cases having marks greater than or equal to 25 are
(a) 5
(b) 12
(c) 13
(d) 18 - The elements of organisation structure are
A. Job specialization
B. Job retation
C. Departmentalization
D. Span of management
E. Chain of command
choose the correct answer from the options given below:
(a) A,B,D and E only
(b) A,C,D and E only
(c) A,B,C and D only
(d) A,B,C and D and E - Which one of the following is the least democratic form of organisation
(a) Committee organisation
(b) Functional organisation
(c) Line and staff organisation
(d) Line organisation