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(P-43)

PAPER-B

WRITTEN TEST PAPER FOR SELECTION OF TEACHERS: CSB 2012

PGT COMMERCE:SUBJECT CODE:(P-43)

1. The balance of which of the following items may have credit balance too? (A) Cash (B) Bank (C) Investment (D) Stock

2. According to the Malthusian theory of population which one of the following statements is not correct? (A) Population tends to outrun the resources of subsistence (B)There is a direct relationship between standard of living and population (C) Increasing population can be checked through only positive checks (D) Positive checks are those checks which are applied by the nature to stop population growth

3. When total utility is maximum, then marginal utility is (A) Zero (B) Less than average utility (C) Equal to average utility (D) More than average utility

4. For ordinary business the maximum number of partners in a Firm is? (A) 7 (B) 10 (C) 20 (D) 50

5. The voting right of the members of cooperative organization is? (A) In the proportion of the shares purchased by them (B) In the proportion of capital employed by them (C) Equal voting right (D) In the proportion of the total amount supplied by them

6. In which sequence are the following steps of communication taken? (a) Getting participation in developing a solution to the problem (b) Transmitting ideas or decisions (c) Clarify the idea or problem

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(d) Measuring the effectiveness of communication Select your answer from the following codes— (A) (a), (b), (c) and (d) (B) (d), (c), (a) and (b) (C) (d), (b), (a) and (c) (D) (c), (a), (b) and (d)

7. Population census is made in India in every (A) 7 years (B) 10 years (C) 15 years (D) 20years

8. Which of the following banks stimulates the agricultural and rural development? (A) EXIM Bank (B) Exchange Bank (C) HDFC Bank (D) NABARD

9. Which bank’s old name was ‘Imperial Bank’? (A) Reserve Bank of India (B) Punjab National Bank (C) State Bank of India (D) Union Bank of India

10. Repo rate is the rate at which? (A) The RBI takes money from banks (B) Banks take money from the RBI (C) One bank takes money from another bank (D) The Government takes money from RBI

11.If own debenture of Rs. 1,000 is purchased for Rs. 975 from the market by the company, the difference of Rs. 25 will be assumed? (A) Profit on redemption of debenture (B)Loss on redemption of debenture (C)Goodwill (D)None of these

12. If debentures of Rs. 3,25,000 are issued for the consideration of net assets of Rs. 3,50,000, balance of Rs. 25,000 will be credited to? (A) Capital Reserve A / c (B) General Reserve A/c (C) Profit & Loss A/c (D) Goodwill A / c

13. Decrease in current liabilities is? (A) Source of cash

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(B)Use of cash (C) None of (A) and (B) (D) Both of (A) and (B)

14. The original cost of an asset is Rs. 4,15,000. The useful life of the asset is 20 years and net scrap value is estimated to be Rs. 65,000. The amount of depreciation to be charged every year will be? (A) Rs. 17,000 (B) Rs. 17,500 (C) Rs. 18,000 (D) Rs. 18,500

15. Which of the following is not undistributed profit? (A) General Reserve A/c (B) Workmen Compensation Fund A / c (C) Securities Premium A/c (D) Dividend Equalisation Reserve A/c

16. Who is the Chairman of the Planning Commission? (A) Prime Minister (B) President (C) Governor of Reserve Bank of India (D) Finance Secretary

17.Short working is equal to? (A) Minimum rent-Royalty (B) Royalty-Minimum Rent (C) Royalty-Amount paid to landlord (D) Short working-Surplus

18. Which of the following errors will not affect the Trial Balance? (A) Goods for Rs. 5,000 purchased on cash, expenses account was debited instead of purchases account (B) Purchase Returns Book for December was overcast by Rs. 500 (C) Sales Book carried forward Rs 2,200 instead of Rs. 2,000 (D) None of these

19. Which of the following statements is ‘True’ ? (A) Building Account is a nominal account (B) Outstanding rent account is a non-personal account (C) Every debit has a corresponding credit (D) Income is debited

20. X and Y Motivation Theory has been propounded by? (A) Maslow (B) Ouchi (C) Herzberg (D) McGregor

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21. Study the following statements and mark your answer according to the answer code given below— I. Planning is the first function of management. II. Planning provides a basis for organisation. Ill. Planning does not involve decision-making. IV. Planning is a static function. Codes: (A) I and III are correct (B) I and II are correct (C) I and IV are correct (D) II and IV are correct

22. The main objective of controlling is to— (A) Punish the guilty person (B) Ensure that performance is as per planning (C) Maintain discipline (D) Fix responsibility of subordinates

23. Indian Banking Regulation Act was passed in the year? (A)1971 (B) 1969 (C)1949 (D) 1947

24. Received Rs. 5,000 from Ram but credited his account by Rs. 50,000 is? (A)Error of Omission (B)Error of Principles (C)Compensation Error (D) None of these

25. The subsidiary voucher produced in the absence of primary voucher is called? (A) General voucher (B) Note-book voucher (C) Counterfoil (D) Collateral voucher

26. In how many days from the registration, the first Auditor of the company be appointed? (A)10 (B) 20 (C)30 (D) 60

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27. Internal Auditor can be removed by the? (A) Management (B) Shareholders (C) Statutory Auditor (D) Government

28. According to Section 227(1) of the Companies Act, 1956, the Auditor does not have the right (A) To sign the Audit Report (B) To see the books, accounts and vouchers of the company (C) To obtain information and explanation (D) To correct any wrong statement

29. Consider the following documents? (a) Audit Report (b) Audit Note-book (c) Audit Programme (d) Audit Files The correct sequence in which the Auditor prepares these documents is? (A) (c) (b) (d) (a) (B) (d) (c) (a) (b) (C) (c) (a) (d) (b) (D) (a) (b) (c) (d)

30. Which one of the following is not a method of depreciation? (A) Insurance Policy Method (B) Diminishing Return Method (C) The Sum of the Year Digits Method (D)Replacement Cost Method

31. Domestic use of office telephone is (A) Embezzlement of Labour (B) Embezzlement of Property (C) Embezzlement of Facility (D) None of these

32. Which of the following will happen when statutory liquidity ratio of banks is

reduced by the central banks?

(A) Government can borrow more funds from the banks than before

(B) Government can sell more securities to the banks than before

(C) Private sector will be able to get less credit from banks than before

(D) Government will be able to sell less securities to banks than before

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33. The production function expresses the relationship between? (A) Cost and benefit (B) Stock and flow variables (C) Demand and supply (D) Input and output

34. As against revenue deficit, gross fiscal deficit will always be? (A). Lower (B) Higher (C) Similar (D) Some times higher and sometimes lower

35. Unclaimed dividends should be shown in the Balance Sheet of a company under the heading (A) Reserve and Surplus (B) Provisions (C) Current liabilities (D) Miscellaneous items

36. The term, ‘imprest system’ is used in relation to? (A) Purchases Book (B) Sales Book (C) Cash Book (D) Petty Cash Book

37. On 31st December, 2007 the assets and liabilities of a firm were Rs. 40,000 and Rs. 30,000 respectively. The firm was dissolved and a sum of 60 paise per rupee was paid to the creditors. Loss on realization was? (A) Rs. 10,000 (B ) Rs, 12,000 (C) Rs. 18,000 (D) Rs. 22,000

38. The rate of commission payable on the issue of shares should not be more than? (A) 2% (C) 4% (B) 3% (D) 5%

39. If sales are Rs. 18,000, Gross Profit Rs. 5,000, Net Loss Rs. 1,000, the operating expenses will be? (A) Rs. 4,000 (B) Rs. 6,000 (C) Rs. 13,000 (D) Rs. 17,000

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40. Cumulative Preference share holders can claim unpaid dividend of earlier years as a matter of right only when? (A) There are sufficient profits (B) Company goes into winding up (C) There are sufficient liquid funds (D) Directors propose to distribute dividend to equity share holders before giving dividends to them

41. You are given the following item (a) Bills Receivables (b) Short-term Investments (c) Debtors (d) Accrued but not received Interest. Which of the following arrangements in the order of liquidity is correct? (A) (a), (b), (c) and (d) (B) (b), (a), (d) and (c) (C) (b), (c), (a) and (d) (D) (c), (a), (d) and (b)

42. Opening Stock : Rs. 15,000 Purchases : Rs. 95,000 Closing Stock :Rs. 29,000 Gross Profit 10% of sales The amount of sales will be? (A) Rs. 60,000 (B) Rs. 72,000 (C) Rs. 80,000 (D) Rs. 90,000

43. The installation expenses for a new machine will be debited to? (A) Installation Expense account (B) Cash account (C) Profit and Loss account (D) Machinery account

44. Changing of capital expenditure to revenue expenditure results in (A) Secret reserve (B) Revenue reserve (C) Capital reserve (D) None of these

45. Profit prior to incorporation of a company? (A) Can be paid as dividend (B) Cannot be paid as dividend (C) Can be used for revenue expenses (D) None of these

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46. Consider the following statements: Internal check relates to 1. arrangement of duties of employees. 2. distribution of work in such a way that work of one employee is checked by other employee. 3. review of operations. Which of the statements given above is/are correct? (a) 1 and 2 (b) 2 and 3 (c) 3 only (d) l, 2 and 3

47. What does management audit imply? (a) Complete audit (b) Detailed audit (c) Efficiency audit (d) Interim audit

48.Which one of the following statements is correct? (a) Audit of an educational institution is compulsory if it is run by a charitable trust (b) A club is treated as a commercial establishment (c) The accounts of charitable trust can be audited by any person who belongs to accountancy profession

(d) Audit of a charitable trust is not compulsory under law

49. Which among the following is eligible to issue Self Prospectus? (a) Any company contemplating for public issue of securities (b) Any public financial institution (c) Only manufacturing companies (d) Only foreign companies engaged in trading in India

50. What is/are the consequence(s) of non-registration of partnership firm? 1. It cannot sue any of its partners. 2. Partners of an unregistered firm can file suits against each other. 3. Partners can sue the firm to enforce their claims. Select the correct answer using the codes given below: (a) l only (b) 2 only (c) 3 only (d) None of these

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51. Under which principle, all the rights of an insured are transferred to insurance company after making payment of claim? (a) Subrogation (b) Utmost good faith (c) Contribution (d) Average clause

52. Life Insurance is a contract of which one of the following? (a) Indemnity (b) Guarantee (c) Contribution. (d) Subrogation

53. In foreign trade, what is the price quoted by a supplier which includes all charges incurred up to door delivery of goods to the buyer, called? (a) Loco price (b) C.I.F. price (c) Franco price (d) Landed price

54. Consider the following statements: 1. Letter of credit cannot be opened by mail. 2. Contracts of export of goods and services against payment to be secured partly or fully beyond 90 days are treated as deferred payment exports. Which of the statements given above is/are correct? (a) 1 only (c) Both 1 and 2 (b) 2 only (d) Neither 1 nor 2

55. Which one of the following is not one of the elements of the 75 McKinsey Model for analyzing and improving organizational effectiveness? (a) Strategy (b) Structure (c) Shared Values (d) Standard

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56.What is the correct sequence of the following steps in a strategic planning process? 1. Inputs 2. Evaluation of alternatives 3. Execution 4. SWOT analysis Select the correct answer using the codes given below: (a) l, 4, 2, 3 (b) 4, l, 2, 3 (c) l, 2, 3, 4 (d) 4, l, 3, 2

57. Consider the following statements: In the absence of an agreement, a partner of a firm has the right to 1. claim remuneration for taking part in the management. 2. take part in the conduct and management of business. 3. share the profits of the firm equally with other partners. 4. pledge partnership property as a security for his own private debts. Which of the statements given above is/are correct? (a) 1 and 4 (b) 2 and 3 (c) 1 only (d) 4 only

58. When Maslow’s need hierarchy is compared with Herzberg’s two-factor theory of motivation, which of the following statements are correct? 1. Maslow’s psychological needs; security, safety and affiliation or acceptance represent almost the same meanings as Herzberg’s maintenance factor. 2. Esteem or status is also a part of maintenance factor. 3. Self-actualization be compared as a component of motivators as in Herzberg’s theory. Select the correct answer using the code given below: (a) l, 2 and 3 (b) 1 and 2 only (c) 2 and 3 only (d) 1 and 3 only

59. Accounting is?

(A) An Art (B) A Science _ (C) A Profession (D) All of these

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60. The Institute of Chartered Accountants of India was established in the year—

(A) 1947 (B) 1949 (C) 1951 (D) 1956

61. Which of the following Accounting Standards relates to accounting for fixed assets ?

(A) AS 3 (B) AS 10 (C) AS 14 (D) AS 16

62. The Generally Accepted Accounting Principles (GAAP) aim at-

(A) Uniformity in accounting practices (B) Uniform accounting practices in all enterprises (C) Acceptance of globalisation, liberalisation and privatisation in the field of accounting (D) All of the above

63. The cost of erection of an old machine will be posted in the credit side of——

(A) Cash Account (B) Machinery Account (C) Repairs and Renewal Account (D) None of the above

64. Adjustment Entry for rent received in advance would be—

(A) Cash A/c ’ Dr, To Rent Received in Advance A / c (B) Cash A/c Dr. To Rent A / c (C) Rent A/c Dr. To Rent Received Advance A/ c

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(D) Advance Rent A / c Dr. To Rent A / c

65. ln the absence of partnership agreement the profit is shared by the partners-

(A) equally (B) on the basis of capital invested (C) on the basis of decision of the court (D) on the basis of time spent

66. At the time of admission of a new partner the capital brought by him is shared among existing partners—-•

(A) equally (B) on me basis of capital of the older partners (C) on the basis of sacrifice done (D) untrue statement

67. The object of cost accounting is-

(A) Ascertainment of Cost (B) Valuation of Stock (C) Cost Control (D) All of these

68. Tender Price means-

(A) Quotation Price (B) Probable Sale Price (C) Price informed to the customer (D) All of the above

69. F. W. Taylor is known as a father of-

(A) Scientific Management (B) Management by Objectives (C) Human Relation based Management (D) Management by Motivation

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70. Decision-making is~

(A) A mental process (B) An intellectual process (C) A universal functional process (D) All of the above

71. As per the rule of Garner versus Murray, any loss that arises due to being insolvent of any partner should be divided among other partners in their (A) Profit and loss sharing ratio (B) Capital ratio (C) Average of both ratios (D) None of these

72. A and B are partners in a firm. They admit C into partnership by giving him fourth share in future profits. The new profit sharing ratio of all the partners will be (A) 3:2:1 (B)3;1:2 (C) 3:3:2 (D)3.:3

73. A demand curve, parallel to X-axis, shows the elasticity- (A) Infinite (B) Less than 1 (C) Zero (D) inelastic demand

74. When total utility is maximum, then marginal utility is— (A) Zero (B) Less than average utility (C) Equal to average utility (D) More than average utility

75. Line and staff organisation is most suitable for- (A) Small enterprises (B) Medium sized enterprises (C) Large sized enterprises (D) Cottage enterprises

76. Which of the following statements is incorrect?

(A) Liabilities + Assets = Capital

(B) Liabilities + Capital = Assets

(C) Assets - Capital = Liabilities

(D) Assets - Liabilities = Capital

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77 . Which of the following is incorrect?

(A)

(B)

(C)

(D)

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Which of the following are correct?

(A) (i) and (iii)

(B) (i), (ii) and (iii)

(C) (i) and (ii)

(D) (ii) and (iii)

79 Which of the following are correct?

(A) (i), (ii) and (iv) only

(B) (i) and (iv) only

(C) (i), (ii) and (iii) only

(D) (ii), (iii) and (iv) only

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80 Which of the following best describes a trial balance?

(A) It is a list of balances on the books

(B) Shows all the entries in the books

(C) Shows the financial position of a business

(D) It is a special account

81 .

The descending order in which current assets should be shown in the balance sheet is:

(A) Stock, Debtors, Bank, Cash

(B) Cash, Bank, Debtors, Stock

(C) Stock, Debtors, Cash, Bank

(D) Debtors, Stock, Bank, Cash

82. Which of the following are personal accounts? (i) Buildings (ii) Wages (iii) Debtors (iv) Creditors

(A) (i) and (iv) only

(B) (ii) and (iii) only

(C) (ii) and (iv) only

(D) (iii) and (iv) only

83 .

When Lee makes out a cheque for Rs 50 and sends it to Young, then Lee is known as:

(A) The creditor

(B) The drawer

(C) The payee

(D) The banker

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84 .

If you want to make sure that your money will be safe if cheques sent are lost in the post, you should:

(A) Cross your cheques ‘Account Payee only, Not Negotiable’

(B) Always pay by cash

(C) Always take the money in person

(D) Not use the postal service in future

85 .

The total of the ‘Discounts Allowed’ column in the Cash Book is posted to:

(A) The credit of the Discounts Allowed account

(B) The debit of the Discounts Received account

(C) The debit of the Discounts Allowed account

(D) The credit of the Discounts Received account

86. At the balance sheet date the balance on the Accumulated Provision for Depreciation Account is:

(A) Transferred to Depreciation Account

(B) Transferred to Profit and Loss Account

(C) Transferred to the Asset Account

(D) Simply deducted from the asset in the Balance Sheet

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87 The Journal is:

(A) Part of the double entry system

(B) Not part of the double entry system

(C) Used when other journals have been mislaid

(D) A supplement to the Cash Book

88 A Bank Reconciliation Statement is a statement:

(A)

Sent by the bank when the account is overdrawn

(B) Drawn up by the bank to verify the cash book

(C) Drawn up by us to verify our cash book balance with the bank statement balance

(D) Sent by the bank when we have made an error

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Which of the following are not errors of principle?

(i) Motor expenses entered in Motor Vehicles account (ii) Purchases of machinery entered in Purchases account (iii) Sale of Rs 250 to C Phillips completely omitted from books (iv) Sale to A Henrique’s entered in A Henry’s account.

(A) (i) and (ii)

(B) (ii) and (iii)

(C) (iii) and (iv)

(D) (i) and (iv)

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90. Marketing concept rest on four main pillars-market focus, customer

orientation, co-ordinated market and the last one is__________________

A) Product quality

B) Customer satisfaction

C) Customer need

D) Profitability

91. HLL is a leading co.in producing soaps and detergents. So, recently it has

decided to go in for food products like ice cream. What is the process called?

A) Market penetration B) Product development

C) Market development D) Diversification

92. Under which approach the principle of “caveat emptor” and “caveat

vendor” operates?

A)Caveat emptor (Old approach) &Caveat vendor (New approach)

B) Caveat emptor (New approach) &Caveat vendor (Old approach)

C) Caveat emptor &Caveat vendor both old approach

D) Caveat emptor &Caveat vendor both new approach

93. The demand for goods and services exceed in what type of market?

A) Seller’s market B) buyer’s market

C) Both D) None

94. Buying ,assembling and selling can be categorized under which head of

marketing function as given by Cundiff, Still &Gouoni—

A) Function of physical supply B) Merchandising Function

C) Facilitating function D) None of these

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95. Higher debt equity ratio [

] results in

(A) lower financial risk (B) higher degree of operation risk

(C) higher EPS (D) higher degree of financial risk

96. Grapevine is

(A) Formal communication (B) Barrier to communication

(C) Lateral communication (D) Informal communication

97. e-Commerce does not include

(A) A business’s interactions with suppliers

(B) A business’s interactions with its customers

(C) Interactions among various departments within the business

(D) interaction among the geographically dispersed units of the business

98. The payment mechanism typical to e-business is

(A) Cash on Delivery (B) cheques

(C) Credit and Debit cards (D) e-Cash

99. Level-2 VIRUS means

(A) Annoyance in terms of some on-screen display

(B)Damage to target data files

(C) Complete destruction of the system

(D) Disruption of functioning

100. Reconstruction of sick public sector units is taken up by

(A) MOFA (B) MoU (C) BIFR (D) NRF

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