CMA Foundation Question Paper With Answers pdf
On 16th June ICMAI conducted CMA Foundation exam. The Exam pattern for CMA Foundation is completely MCQ based. The question paper consits of 4 subjects. 50 MCQ's (2 marks each) is asked from every subject. Team Koncept has complied the complete cma foundation June 2024 question paper with answers. For queries you can contact our faculties Ruchika Maam (AIR 7) and Yash Sir (AIR 24) on 9228446565.
1. Money Bill is introduced in which House of the Parliament?
Answer :
Choice 'A' is correct as
The Money Bill is introduced in the Lok Sabha, which is the Council of the People and the lower house of the Indian Parliament.
As per Article 110 of the Constitution of India, a Money Bill can only be introduced in the Lok Sabha, and not in the Rajya Sabha (Council of States) which is the upper house of the Parliament. This is because the Lok Sabha is considered to be more representative of the people, as its members are directly elected by the citizens of India, while the members of the Rajya Sabha are indirectly elected by the elected members of the state legislative assemblies.
2. Consideration Contemplated under Indian Law is
Answer :
Choice 'C' is correct as
Section 2(d) defines consideration as follows: "When at the desire of the promisor, the promisee or any other person has done or abstained from doing, or does or abstains from doing or promises to do or abstain from doing something, such an act or abstinence or promise is called consideration for the promise". Thus, the essential elements can be specified as follows:
(1) That is to say, consideration is the doing or not doing of something which the promisor desires to be done or not done.
(2) Consideration must be at the desire of the promisor.
(3) Consideration may move from promisee or any other person.
(4) Consideration may be past, present or future.
(5) Consideration need not be adequate, but should be real.
3. The Term Unpaid Seller includes
Answer :
Choice 'B' is correct as
In the definition of unpaid seller the term "seller" includes any person who is in the position of a seller as for instance an agent of the seller to whom the bill of lading has been indorsed or a consignor or agent who has himself paid or is directly responsible for the price
4. An agreement will be unlawful if
Answer :
Choice "D" is correct as
The limits to contractual freedom are set out in Section 23 of the Act. An agreement, the object or consideration of which is unlawful is void. The seven circumstances which would make consideration as well as an object unlawful are discussed below:
(i) Forbidden by law
(ii) Defeat of the provision of law
(iii) Defeat of any rule for the time being in force in India
(iv) Fraudulent
(v) Injury to the person or property of another
(vi) Immoral
(vii) Agreement opposed to public policy
5. Feedback is needed in which way communication
Answer :
Choice 'B' is correct as
Feedback is an essential component of two-way communication, which is a type of communication in which there is an exchange of information between two parties (sender and receiver) and both parties are actively involved in the communication process. In two-way communication, feedback is the process of providing a response or reaction to the message that has been received. Feedback can take many forms, including verbal and nonverbal communication, and it is essential for ensuring that communication is effective and that the message has been accurately understood by the receiver. In contrast, one-way communication is a type of communication in which information flows in only one direction, from the sender to the receiver, without any opportunity for feedback or response.
6. What Are Personal Laws?
Answer :
Choice 'B' is correct as
Personal laws are a set of laws that are applicable to specific communities or religious groups based on their customs and beliefs. These laws deal with various aspects of personal life such as marriage, divorce, inheritance, and succession. In India, personal laws have their roots in religious and customary practices, and they have been codified over time to bring uniformity and clarity in their application.
7. Agreements between a husband and wife living in friendly environment are
Answer :
Choice "C" is correct as
The Indian Contract Act governs commercial contracts and legal enforceability, excluding familiar relationships between spouses. It recognizes these as domestic arrangements, not formal contracts, and may limit their legal enforceability. This aligns with the Act's focus on commercial dealings and family relationships.
8. A contract should be performed by
Answer :
Choice "D" is correct as
The promise under a contract may be performed, as the circumstances may permit, by the promisor himself, or by his agent or his legal representative. Promise can also be performed by third persons or by joint promisors.
9. State which of the following statements is false
Answer :
Choice "A" is correct as
When a bill is drawn, accepted or endorsed for consideration, it is a valid bill. Also all other statements are true.
10. Writing is _______________in nature?
Answer :
Choice 'A' is correct as
Writing is personal in nature and it represents one’s true characteristics. As a result, it helps a person to connect with others
11. Secondary/Subordinate legislation cannot go beyond:
Answer :
Choice 'B' is correct as
Secondary or sub-ordinate legislation, such as rules, regulations, and bylaws, must be made within the limits of the enabling Act or the Constitution of India. The Constitution of India provides for the separation of powers between the legislature, executive, and judiciary. The legislature enacts primary legislation, while the executive is responsible for implementing and enforcing the laws through secondary or sub-ordinate legislation. However, the executive cannot exceed its authority or violate the Constitution or the enabling Act while making such laws. If it does, the judiciary has the power to strike down such laws as unconstitutional or ultra vires.
12. If a party stands in a fiduciary relation to the other :
Answer :
Choice "B" is correct as
A fiduciary relationship involves a fiduciary oweing trust, loyalty, and confidence to another party, with the fiduciary holding authority. Hence they can dominate the will of the other.
13. The term 'price' has been defined in Section ______ of the sale of goods act,1930
Answer :
Choice "A" is correct as
section 2(10) defines price as 'price' means the money consideration for a sale of goods.
14. Who among the following cannot cross a cheque?
Answer :
Choice 'D' is correct as
A cheque can be crossed by the drawer, the holder of the cheque or banker.
15. Method of delivering the message is known as _______________?
Answer :
Choice 'B' is correct as
In communication, the channel refers to the method or medium used to deliver a message from a sender to a receiver. There are many different channels that can be used for communication
16. State which of the following statement is true:
Answer :
Choice 'A' is correct as
All case laws are judicial precedent, also all other statements are false
17. Municipalities are provided for authority under which part of the Constitution of India?
Answer :
Choice 'B' is correct as
Part IXA of the Constitution of India deals with the constitution of municipalities. This part was added to the Constitution by the 74th Amendment Act of 1992, which provides for a three-tier system of urban local government in India, namely Nagar Panchayats for areas in transition from rural to urban, Municipal Councils for smaller urban areas, and Municipal Corporations for larger urban areas. Part IXA provides for the composition, powers, and functions of these municipalities, as well as for the devolution of powers and responsibilities to them by the state governments. The objective of Part IXA is to promote democratic and accountable local governance in urban areas.
18. Which one of the following statements is correct?
Answer :
Choice "D" is correct as
According to the Indian Contract Act, illegal agreements are always void. If an agreement involves an unlawful object or consideration, or if it is expressly prohibited by law, it is deemed illegal and, as a consequence, void. The law does not recognize or enforce agreements that are illegal.
19. Which of the following statements is false?
Answer :
Choice "D" is correct as
According to the Sales of Goods Act, Both B and C statements are false, as the contract of sale does not create rights in personam (a right against a specific person).. Instead, it creates a right in rem (a right against the world at large) and Agreement to sell does not create a right in rem (a right against the world at large). Instead, it creates a right in personam (a right against a specific person).
20. There are __________________ ingredients of offence under Sec.138 of the Negotiable Instrument Act, 1881.
Answer :
Choice "D" is correct as
Five ingredients of the offence under Sec. 138 of the Negotiable Instruments Act, 1881
The offence under Sec. 138 of the Act can be attracted, given sufficient components of the said offence;
Upon such dishonour of an issued cheque, the payee can initiate legal proceedings under Section 138 of Negotiable Instruments Act, 1881.
21. Need of proper grammar and syntax comes under which C of communication?
Answer :
Choice 'D' is correct as
The need for proper grammar and syntax comes under the "Correctness" C of communication. Correctness refers to the accuracy and precision of the message being communicated, including proper grammar, syntax, spelling, and punctuation. Communication that is free from errors and mistakes is more likely to be understood and taken seriously by the audience, which can help to build credibility and trust.
Correctness is essential in various forms of communication, including written and oral communication. In written communication, correctness involves using proper grammar, spelling, and punctuation to convey the message clearly and accurately. In oral communication, correctness involves using proper pronunciation, intonation, and syntax to ensure that the message is clearly understood by the audience.
22. The grace period for payment of a negotiable instrument other than payable on demand is_______days/months.
Answer :
Choice " B " is correct as -
This indicates a grace period of 3 days for payment after the maturity of the negotiable instrument. However, it's crucial to note that such specifics may vary, and it is important to refer to the applicable laws and the terms mentioned in the negotiable instrument for accurate information. Always consult local regulations and legal experts for the most accurate and up-to-date information.
23. X contracted with Y to encroach upon property forcefully. This contract is
Answer :
Choice " B " is correct as -
According to Section 23 of the Act, the consideration or object of an agreement is unlawful if it involves committing fraud or any act that the law deems immoral or against public policy.
Specifically, Section 23 states that "The consideration or object of an agreement is lawful, unless— it is forbidden by law; or is of such a nature that, if permitted, it would defeat the provisions of any law; or is fraudulent; or involves or implies injury to the person or property of another; or the Court regards it as immoral, or opposed to public policy."
Given that the contract involves fraudulent encroachment on Z's property, it directly falls under the category of being fraudulent and involving injury to another's property. Consequently, the contract is void and unenforceable as per the Indian Contract Act, 1872.
24. Which of the following rights is/are available to an unpaid seller?
Answer :
Choice " A " is correct as -
As per the Sale of Goods Act, 1930, an unpaid seller has rights against goods as well as rights against buyer. Among various rights against goods, he has the right ott resale if he is unpaid. There is no such right as right to mortgage of consume goods.
25. In a breach of conditions in a contract of sale, the buyer
Answer :
Choice " D " is correct as -
As per the Sale of Goods Act, 1930, in case of breach of conditions in a contract of sale, the buyer can refuse to accept the goods.
26. In which business communication, a speaker has to clearly speak for or against a topic?
Answer :
Choice " B " is correct as -
Debate is based usually on current affairs or situations where the speaker researches in depth about the topic and either speaks for or against the notion.
27. State which of the following relates to disadvantages of referencing:
Answer :
Choice " D " is correct as -
Referencing will help provide a trail to the original source document and act as supporting evidence to the report.
However, there are various disadvantages also of Referencing -
28. _____________ is commonly used to highlight certain important documents or matters of significance in a document.
Answer :
Choice " B " is correct as -
Colour coding is commonly generally used to highlight certain important documents or matters of significance in a document. This is done by assigning colours. For example: Highlighted in red could mean matters requiring urgent attention and needs to be checked. Blue could mean matters of considerably lower significance and green means a desirable situation.
29. In FOB contract, property and risks passes on
Answer :
Choice " A " is correct as -
F.O.B. contracts (Named port of shipment). F.O.B. stands for "free on board". If A of Delhi agrees to sell 100 tons of sugar, F.O.B. Mumbai, to B of Manchester, this would mean that A must put the goods on board a ship at Mumbai at his own expense under a contract of carriage by sea, to be made by or on behalf of the buyer, for the purpose of transmission to the buyer.
Seller's duties.: To deliver the goods on board the ship named by the buyer. When once the goods are put on board the ship, they are at the risk of the buyer. The duty of the seller ends when he delivers the goods at his own expense to the ship at the port of shipment [Colley v.Overseas Exporters, (1921) 3 K.B. 302]. Such delivery transfers the possession, property and risk to the buyer.
30. For which of these, rights of lien can not be exercised by an unpaid seller?
Answer :
Choice "D " is correct as -
According to section 47(1) an unpaid seller can exercise the right of lien in the following cases:
Since, none of the case is provided in the options above, Option D is correct.
31. State which of the following statements is false:
Answer :
Choice " D " is correct as -
Advertising is derived from a Latin word ‘Advertere’ which means ‘turn the minds of someone towards something.
32. Which of the following is not an advantage of formal communication?
Answer :
Choice 'B' is correct as
It is slower than informal communication because it is time consuming to follow communication through a long chain of command. Thus, it is not as fast as informal communication
33. At the end of the day, who needs to be satisfied?
Answer :
Choice 'B' is correct as
While all stakeholders (including the company, customers, and suppliers) are important, customer satisfaction is typically paramount because satisfied customers drive the success and sustainability of a business. Without satisfied customers, a company cannot generate revenue, maintain profitability, or grow. Hence, many business philosophies and strategies prioritize customer satisfaction as the key to achieving overall success.
34. Select the odd one:
Answer :
Choice 'A' is correct as
The odd one out is Estoppel.
Thus, Estoppel is conceptually different from the other options, which are all specific types of sales.
35. Auctioner’s tactics to raise the prices artificially is known as
Answer :
Choice 'A' is correct as
Auctioneer’s tactics to raise the prices artificially is known as Pretended Bidding.
36. Select the odd one:
Answer :
Choice 'B' is correct as
The odd one out is Special damages.
Here's the reasoning:
Nominal damages, Exemplary damages, and Symbolic damages are all types of damages that are not primarily compensatory.
Nominal damages are a small sum awarded where a legal wrong occurred but did not result in significant loss or injury.
Exemplary damages (also known as punitive damages) are intended to punish the defendant and deter future similar conduct.
Symbolic damages are akin to nominal damages, representing a token amount awarded to acknowledge that a legal right has been violated.
Special damages, on the other hand, are a type of compensatory damages awarded for specific, quantifiable losses that resulted directly from the defendant's actions, such as medical expenses, lost earnings, and property repair costs.
37. General offer can be accepted by
Answer :
Choice 'B' is correct as
A general offer is an offer made to the public at large and can be accepted by anyone who meets the conditions of the offer and is legally capable of entering into a contract.
38. Remission of contract means
Answer :
Choice 'B' is correct as
A contract is also discharged by rescission. When the parties to a contract agree to rescind it, the contract need not be performed.
39. Quasi-Contractual obligations are also called as
Answer :
Choice 'D' is correct as
Quasi-Contractual obligations are termed under English Law and “ Certain relations resembling those created by contract” under Indian Law.
40. Consensus ad-idem means
Answer :
Choice 'A' is correct as
Consensus ad idem/Meeting of Minds: The essence of agreement or in turn contract is meeting of mind of the parties. The parties to an agreement must have agreed upon the subject in the same sense and at the same time. Unless there is consensus ad idem, there cannot be any contract.
41. Cheque is a
Answer :
Choice 'B' is correct as
A cheque is a type of bill of exchange. A cheque is a financial instrument that is used to transfer money from one bank account to another. It is a written order by the drawer (the person or entity issuing the cheque) to the drawee (the bank) to pay a specified amount of money to the payee (the person or entity to whom the cheque is payable).
42. If the words “not negotiable” are used with special crossing in a cheque, the cheque is---
Answer :
Choice 'A' is correct as
If the words "not negotiable" are used with a special crossing in a cheque, it means that the cheque can only be paid into the account of the payee mentioned in the cheque and cannot be further negotiated to any other party.
43. How many parties are involved in a Bill of Exchange
Answer :
Choice 'B' is correct as
There are three parties involved in a Bill of Exchange:
44. Which of the following should be avoided in the group discussion?
Answer :
Choice 'C' is correct as
Rules to be followed for an effective Group Discussion
45. _______ parties are involved in an cheque
Answer :
Choice 'B' is correct as
Parties: There are three parties to Cheque:
1.The drawer: The customer who signs the cheque is called “drawer”.
2. The drawee: The bank on whom the cheque is drawn is called “drawee”.
3. The Payee: The person to whom the payment is to be made is called the payee.
46. If an instrument may be construed either as a promissory note or bill of exchange, it is
Answer :
Choice 'B' is correct as
An instrument that can be construed as either a promissory note or bill of exchange is referred to as an ambiguous instrument. The Negotiable Instruments Act, of 1881 provides specific definitions for promissory notes and bills of exchange, and an instrument that does not clearly fit into either category may be considered ambiguous.
47. The term “a cheque in the electronic form” is defined in the Negotiable Instruments Act, 1881 - under
Answer :
Choice 'C' is correct as
Explanation 1 to Section 6 of the Act was amended to include an electronic image of a truncated cheque and a cheque in the electronic form. The definition of a truncated cheque was also amended to include an electronic image of a truncated cheque.
48. A Corporation can be party to a Negotiable Instrument if—
Answer :
Choice 'A' is correct as
A corporation or company can be a party to a negotiable instrument, such as a promissory note, bill of exchange, or cheque, if it is authorized to do so by its articles of association or bylaws.
49. A contract by a minor is voidable under the
Answer :
Choice 'B' is correct as
Under the Indian Contract Act, a contract by a minor is not voidable but void ab initio (void from the beginning). This means that such a contract is not valid from the outset and cannot be enforced against the minor.
Under English Law, a contract by a minor is typically voidable at the minor's option, meaning the minor can choose to either affirm or void the contract upon reaching the age of majority.
Therefore, the correct answer for a contract by a minor being voidable is: English Law.
50. A Contract can be avoidable due to
Answer :
Choice 'A' is correct as
A contract can be voidable due to Mistake of law of a foreign country.
In contract law, a mistake of law of one's own country is generally not considered a valid ground to void a contract. However, a mistake regarding the law of a foreign country can be treated similarly to a mistake of fact, which may make the contract voidable under certain circumstances.
Therefore, the correct answer is:
Mistakes of law of foreign country.
51. The economic life of an entity is artificially split into small equal time intervals in accordance with concept
Answer :
Choice 'D' is correct as
Periodicity concept states that the ongoing life of a business is divided into discrete and uniform periods, such as months, quarters, or years, for the purpose of financial reporting.
By breaking down the continuous life of a business into smaller intervals, it allows for regular and consistent financial reporting, making it easier for stakeholders to assess the performance and financial position of the business at regular intervals.
52. Which of the following is not a framework of accounting?
Answer :
Choice 'C' is correct as
The frameworks of accounting typically include the following:
53. Which component of financial statements directly represents the Accounting Equation?
Answer :
Choice 'B' is correct as
Explanation:
54. Which of the following is not a column in the triple column cash book?
Answer :
Choice 'D' is correct as
The triple column cash book typically includes three main columns:
55. A cheque issued to a party of ₹ 44,800 was recorded twice in the Cash Book. How should it be treated while drafting Bank Reconciliation Statement, if the balance as per Cash Book is the starting point?
Answer :
Choice 'C' is correct as
When drafting a Bank Reconciliation Statement (BRS), the treatment of a cheque issued but recorded twice in the Cash Book involves adjusting the Cash Book balance to reconcile it with the bank statement balance.
Given:
Steps to adjust the Cash Book balance (starting point of BRS):
Therefore, Option A A - ₹44,800 is to be added.
56. Which of the following is true about Trial Balance?
Answer :
Choice 'B' is correct as
Trial Balance: A Trial Balance is a list of all the general ledger account balances of a company at a specific point in time. It includes the balances of all ledger accounts, both debit and credit, and serves as a preliminary check to ensure that the total of all debit balances equals the total of all credit balances.
57. ₹ 47,000 paid for installation of new machinery in the factory should be debited to Account
Answer :
Choice 'A' is correct as
Installation expenses increase the value of the machinery being installed. Since these expenses are directly related to putting the asset into service, they are capitalized and added to the cost of the asset.
58. Recovery of bad debts
Answer :
Choice 'B' is correct as
The recovery of bad debts is recorded as other income or a reduction in bad debt expense on the income statement.
This increases the net income or net profit for the period because the recovered amount is added to the company's revenue.
59. Under which method, depreciation calculated on Original Cost of fixed asset?
Answer :
Choice 'A' is correct as
Under the Fixed installment method, depreciation is calculated based on a fixed amount or percentage of the original cost of the asset.
60. Goods costing ₹ 1,25,000 taken for domestic use by proprietor were credited to sales Account. While posing a rectification entry _____ Account is to be debited and ______ Account is to be credited.
Answer :
61. In a consignment, the Proforma Invoice is sent by____.
Answer :
Choice 'B' is correct as
When the goods are sent by consignor to the consignee, consignor sends a ‘Proforma Invoice’ in the form of an invoice to the consignee
62. Anil draws a bill worth 60,000 on Vijay on March 1, 2024 for 30 days after dale'. On which date will the bill mature, given that it was accepted on March 7, 2024?
Answer :
Choice 'C' is correct as
Here’s how we calculate it:
Since the bill is drawn for "30 days after date", we count 30 days from March 1, 2024 (excluding the date of the bill itself).
Therefore, the bill will mature on April 3, 2024.
63. On honour of a Bill of Exchange at maturity, no journal entry is required to be passed in the books of the drawer when
Answer :
64. What will be the accounting for goods purchased for joint venture by co-venturer in e separate set of books are maintained?
Answer :
Choice 'D' is correct as
The correct accounting treatment for goods purchased for a joint venture by a co-venturer, when separate sets of books are maintained, is:
(D) Debit: Joint Venture Account; Credit: Co-Venturer's Account
Here's the rationale behind this accounting entry:
This entry ensures that the transaction is correctly recorded in the books of the joint venture, reflecting both the assets acquired (goods) and the corresponding liability (co-venturer's share) in the joint venture.
Therefore, the correct answer is (D) Debit: Joint Venture Account; Credit: Co-Venturer's Account.
65. Akash purchased goods costing ₹ 10,00,000, Vikash sold 4/5th of the goods for ₹ 12,50,000. Balance of the goods were taken- over by Vikash at cost less 20%. If same sets of books are maintained, determine the profit on venture.
Answer :
66. In Memorandum Joint Venture accounting method, each co-venturer records
Answer :
Choice 'C' is correct as
In Memorandum Joint Venture accounting method Each co-venturer maintains their own books of accounts. They record only their own transactions related to the joint venture in their respective books.
67. Which of the following is not a component of a financial statement of a trading sole proprietorship business concern?
Answer :
Choice 'C' is correct as
Profit & Loss Appropriation A/c is not a standard component of the financial statements of a trading sole proprietorship business concern. It is used in companies or partnerships to allocate and distribute profits among partners or shareholders after calculating net profit in the Profit & Loss A/c.
68. What is the purpose of drafting a Manufacturing Account?
Both (A) and (B)
Answer :
Choice 'A' is correct as
This is prepared only by a manufacturing organisation. It is prepared to determine the cost of goods manufactured.
69. While drafting financial statements, "Goods distributed as free samples but not yet accounted for in the books is to be reflected in which of the component(s)?
Answer :
Choice 'D' is correct as
Goods distributed as free samples impact both the Trading Account and the Profit & Loss Account:
70. Outstanding Wages appearing in Trial Balance is reflected in
Answer :
Choice 'C' is correct as
Outstanding wages are recorded as a liability in the Trial Balance and subsequently appear on the Balance Sheet (under liabilities). This reflects the business's obligation to pay these wages in the near future and provides stakeholders with a clear view of the business's financial obligations.
71. In Ram's stationery business for the year 2023-24: Value of opening stock-in-trade is ₹ 4,00,000, Sales during the year is ₹ 20,00,000, Rate of Gross Profit is 25% on Cost and Purchases is 24,00,000, What is the value of closing stock-in-trade?
Answer :
Choice 'A' is correct as
Given:
First, calculate the Cost of Goods Sold (COGS):
COGS=Opening stock+Purchases−Closing stock
Calculate the COGS based on GP Ration given and salaes.
Gross Profit = 25% on Cost
Thus, Gross Profit will be 20% on Sales
Gross Profit = ₹ 20,00,000×20/100
Gross Profit = ₹ 4,00,000
Now, calculate the Cost of Goods Sold (COGS) = Sales - Gross Profit
COGS = 20,00,000 - 4,00,000 = ₹ 16,00,000
Also, COGS=Opening stock+Purchases−Closing stock.
Replacing COGS Value in above equation
COGS = 4,00,000 + 24,00,000 − Closing stock
16,00,000 = 28,00,000 − Closing stock
Closing stock = 28,00,000 − 16,00,000
Closing stock = 12,00,000
Therefore, the value of closing stock-in-trade is ₹ 12,00,000 (Option A).
72. Trade Mark is a
Answer :
Choice 'B' is correct as
A Trade Mark is an intangible asset that represents the distinctive identity or brand of a business. It lacks physical substance and cannot be touched or seen. Therefore, it is classified under fixed intangible assets
73. Madhu's Trial Balance as at March 31, 2024 contains the following information: 12% Bank loan (since July 1, 2022) ₹ 2,00,000: Interest paid ₹ 20,000. What will be total amount of Interest debited to Profit & Lom A/c for the year 2023-24?
Answer :
Choice 'D' is correct as
Amount of Interest = ₹ 2,00,000 * 12% (Loan is outstanding for the entire year)
= ₹ 24,000
74. Subscription of a social club for the year 2023-24 appearing in Income & Expenditure A/c is ₹ 87,000. Ascertain the amount of Subscription received during the year, gives the following details:
Arrear Subscription: On March 31, 2023 ₹ 10,000 and March 31, 2024 ₹ 12,000 Advance Subscription: On March 31, 2023 ₹ 11,000 and March 31, 2024 ₹ 8,000-
Answer :
75. Income & Expenditure A/c of a non-profit organisation is by nature-
Answer :
Choice 'A' is correct as
Income & Expenditure Account of a non-profit organization is prepared to ascertain the surplus or deficit for a specific period, typically a year. It is categorized as a nominal account
76. When Life Membership Fee is treated as a capital receipt, its
Answer :
77. Provision for discount on debtors is ted only on
Answer :
Choice 'D' is correct as
Provision for discount on debtors is created on the balance of total debtors after providing for the provision for bad debts. This ensures that the provision for discounts is calculated on the net amount of debtors expected to pay, after accounting for potential bad debts that may not be recovered.
Therefore, the correct answer is (D) Total debtors after providing provision for bad debts.
78.Jaggu purchased goods of ₹ 80,000 for cash at 10% trade discount and 5% cash discount. purchase account is to be debited by
Answer :
79. Goods purchased from Lokesh Ltd.. but wrongly entered in the sales return book. after rectification of error the result will be
Answer :
Choice 'B' is correct as
When goods purchased from Lokesh Ltd. are wrongly entered in the sales return book (assuming it should have been recorded as purchases), correcting this error will decrease the cost of goods sold (COGS) and therefore decrease the gross profit.
Here’s why:
Therefore, the correction of this error will result in a decrease in gross profit (option B).
80. Software A/c is a
Answer :
Choice 'B' is correct as
Software Account is classified as an Intangible Real Account. It falls under this category because it represents an intangible asset that has enduring value and is used for generating revenue over multiple accounting periods.
81. Which one of the following accounts is not opened in the books of the consignor?
Answer :
Choice 'B' is correct as
Commission Account is not opened in the books of the consignor.
The consignor generally maintains the following accounts:
(i)Consignment Account (to know the profit or loss on consignment)
(ii)Consignee Account (to know the amount due from consignee)
(iii) Goods Sent on Consignment Account (to adjust the goods sold on consignment from the main business).
82. Which one of the following statements is true?
Answer :
Choice 'B' is correct as
Financial statements are part of Accounting.
83. The manager is entitled to a commission of 2% on profits after deducting this commission. If the profits before charging such commission as well as interest on capital of₹ 6,000 are ₹ 1,08,000, then manager's commission will be
Answer :
84. Subscription received during the year ₹ 70,000 subscription outstanding at the beginning of the year ₹ 7,000. Income from subscription was shown as ₹ 75,000. What amount will be shown as subscription outstanding at the end of the
year?
Answer :
85. Bank balance as per Pass Book (credit) ₹ 25,000. Cheque issued worth ₹ 9,090, but recorded in cash book as ₹ 9,900. Find the hank balance as per cash book.
Answer :
Choice 'C' is correct as
Bank balance as per Pass Book (credit): ₹25,000
Cheque issued: ₹9,090 (but recorded in cash book as ₹9,900)
First, correct the recording error in the cash book:
The cheque issued was recorded ₹9,900 instead of ₹9,090. This means there is an excess amount of ₹810 in the cash book (₹9,900 - ₹9,090).
Now, adjust the bank balance in the cash book:
Bank balance as per cash book=Bank balance as per Pass Book−
Excess amount in cash book
Bank balance as per cash book=₹25,000−₹810
Bank balance as per cash book=₹24,190
Therefore, the bank balance as per the cash book is ₹24,190.
The correct option based on this calculation is: (C) Cash book (Dr) ₹ 24,190
86. CAS 6 deals with
Answer :
Choice 'C' is correct as ( doubt)
CAS 6 (Cost Audit Report) primarily focuses on the reporting requirements related to overhead costs in the context of cost audit of companies. It specifies the format and contents of the Cost Audit Report that a cost auditor needs to prepare after conducting a cost audit.
87. Which of the following is not a cost unit applicable for the services sector?
Answer :
Choice 'D' is correct as
Cubic-feet is not a cost unit applicable for the services sector
88. Which method of costing is appropriate for the readymade garments industry?
Answer :
Choice 'B' is correct as
Batch Costing is appropriate for the readymade garments industry.
Batch Costing is used in those firms where productions are made on a continuous basis. Each unit coming out is uniform in all respects and production is made prior to the demand.
89. The appropriate cost unit for_______ is ‘Chargeable Hours‘.
Answer :
Choice 'D' is correct as
'Chargeable Hours' is a commonly used cost unit in audit firms. It refers to the hours that auditors can charge to clients for their services. This metric is crucial in determining revenue and profitability in audit firms, where services are often billed based on the time spent on audits, consultations, and other client-related tasks.
90. The method of costing applicable for Hospitals is _______ Costing
Answer :
Choice 'A' is correct as
Operating costing is the method applicable for hospitals. It is a type of process costing where costs are accumulated and allocated to each patient or department based on the services provided. This method is suitable for healthcare settings like hospitals where services are continuous and diverse, and costs need to be allocated to different patients or departments based on their usage of services and resources.
91. GACAP stands for
Answer :
Choice 'B' is correct as
Generally Accepted Cost Accounting Principles
92. Calculate the amount of Factory Rent given that: Prime Cost is 6,50,000, Work Cost is 200% of Prime Cost, Depreciation of Plant is ₹ 2,50,000 and Power & fuel is ₹ 1,70,000
Answer :
93. Which of the following item(s) is/are not included in the Cost Sheet?
Answer :
Choice 'D' is correct as
Donations, collection expenses, and audit fees are not typically included in a Cost Sheet. Cost Sheets are used to summarize the costs incurred in the production of goods or services, focusing on direct and indirect costs related to production activities. Expenses like donations (which are usually unrelated to production), collection expenses, and audit fees (which are generally administrative expenses) are not considered part of the costs directly attributable to production and therefore would not be included in a Cost Sheet.
94. ____________ is an example of Direct Expenses in book publication.
Answer :
Choice 'A' is correct as
Direct expenses in book publication refer to costs that can be directly traced to the production of specific books. The cost of paper is a direct expense because it directly contributes to the production of the books themselves. Wages of printing staff (option B) would typically be considered indirect expenses or factory overheads. Royalty to authors (option C) is also an indirect expense related to the sale or distribution of the books, not directly tied to their production. Therefore, among the options given, the cost of paper (option A) is the example of a direct expense in book publication.
95. Given that: Value of Raw Material consumed is ₹ 2,00,000, Raw Material purchased is ₹ 1,50,000 and Closing Stock Raw Materials is ₹ 80,000, calculate the value of Opening Stock of Raw Materials.
Answer :
Choice 'D' is correct as
To calculate the value of Opening Stock of Raw Materials, we can use the formula for Raw Material Consumed:
Raw Material Consumed=Opening Stock of Raw Materials+Raw Material Purchased−Closing Stock of Raw Materials
Given:
Raw Material Consumed = ₹2,00,000
Raw Material Purchased = ₹1,50,000
Closing Stock of Raw Materials = ₹80,000
Let's denote the Opening Stock of Raw Materials as X.
Substitute the given values into the formula:
2,00,000=X+1,50,000−80,000
Now, solve for X:
2,00,000=X+70,000
X=2,00,000−70,000
X=₹1,30,000
Therefore, the value of the Opening Stock of Raw Materials is ₹1,30,000.
So, the correct answer is (D) ₹1,30,000.
96. ________ Costing is the adoption of identical costing principles and procedures.
Answer :
Choice 'B' is correct as
Uniform costing the adoption of identical costing principles and procedures by several units of the same industry or several undertakings by mutual agreement. It facilitates valid comparisons between organizations and helps in elimination of inefficiencies.
97. Which one is False?
Answer :
Choice 'C' is correct as
Fixed costs per unit decrease with an increase in output because fixed costs remain constant in total regardless of the level of production. Therefore, as more units are produced, the fixed cost is spread over a larger number of units, leading to a decrease in fixed cost per unit.
98. Costs are classified into material costs, employees' costs and expenses, it is known as
Answer :
Choice 'A' is correct as
Functional classification categorizes costs based on the functions or activities within an organization to which they relate. In this classification:
Therefore, (A) Functional Classification is the correct answer.
99. Wages for abnormal idle time are charged to
Answer :
100. Which of the following items are not included in the Cost Sheet?
Answer :
Choice 'D' is correct as
Cash discount, bank interest, and donations to employees' clubs are not typically included in the Cost Sheet. The Cost Sheet focuses on summarizing the costs related to production activities and does not include financial items like discounts, interest payments, or donations, which are unrelated to production costs. Therefore, the correct answer is (D) All of the above.
101. In 30 litres of adulterated milk, the ratio of the volumes of milk and water is 7 : 3. What volume of water should be added to it to make the ratio of milk and water 3 : 7 ?
Answer :
Choice 'B' is correct as
The quantity of mixture =30ltr
Milk : Water = 7:3
Milk = 30 x 7/10 = 21ltr
Water = 30x3/10 = 9ltr
milk : water = 3:7
21 - 9 + x
21/9 + x = 3x / 7
21 x 7 = 3(9 + x)
147 = 27 + 3x
x = 40 ltr
102.The mean proportional between 2 and 8 is
Answer :
Choice 'A' is correct as
mean = √2x8
= 4
103. p varies directly with the cube root of q and p is 4 when the value of q is 8.Find the value of (q + 1) when the value of p is 6 .
Answer :
Choice 'B' is correct as
P = 3√q , p = 4 , q = 8
4 = 3√8
4:2
2:1 ratio
when P = 6
6 - 3√q
2:1
6x1 = 3√q x 2
6/2 = 3√q
q =27
value of (q + 1) = 27+1
=28
104. If the interest rate is 6% p.a., for what sum of money (in xQ will the difference between compound interest and simple interest for 2 years is T 13.5 ?
Answer :
Choice 'C' is correct as
difference between CI & SI for 2 years = P X (R/100)2
13.5 = P X (6/100)2
p = 3750
105. A bank offers 4% nominal interest with quarterly compounding. What is the effective rate of interest ?
Answer :
Choice 'C' is correct as
LET,
P =100
quarterly = 4 Part in year
100((1) + (4/4) / 100)4
=100((1) + )(1/100)4
=100(101/100)4
=100 x [(100/101) x (101/100) x (101/100) x (101/100)
=4.0604%
=4.06%
Formula :
P[1 + (nominal rate/ parts )/ 100]parts
106. The sum of first 50 natural numbers is
Answer :
Choice 'A' is correct as
n(n+1) / 2
=50(51) / 2
=1275
107. A car travels some distance at a speed 8km/hour and return at a speed 12 km/hour. If the total time taken is 15 hours, what is the distance (in km) ?
Answer :
Choice 'D' is correct as
D = S X t
(d/8)+/(d/12) = 15
d = 72km
108. If product of the first three terms of a G.P. is 64, the middle term is
Answer :
Choice 'D' is correct as
LET ,
ar-1, a ,ar1
64 = ar-1 x a x ar1
64 = a3
a = 4
109. A and B are subsets of an universal set U such that n(U) = 800, n(A) = 300, n(B) = 400 and n(A∩B) = 100. Then the number of elements in the set (Ac∩Bc) is
Answer :
Choice 'B' is correct as
(A U B )C = (AC ∩ BC)
AC = U - A
(A U B)C = U - A U B
n (A U B) = n(A) + n(B) + n(A ∩ B)
=300+400-100
=600
n(AC ∩ BC ) = U - n (A ∩ B)
=800 - 600
=200
110. If A = { 1, 2, 3, 4} and 5= {3, 5, 7}, then (A-B) u (B-A) is
Answer :
Choice 'D' is correct as
A - B = {1,2,3,4} - {3,5,7}
={1,2,4}
B - A = {3,5,7}-{1,2,3,4}
= {5,7}
(A - B) U (B - A) ={1,2,4,5,7}
111. If (300)8= 65 .6 1 x10x ,then the value of x is
Answer :
Choice 'C' is correct as
(300)8 = 65.61 x 10x
(3x100)8 = (6561/100) x 10x
6561 x 1016 = 6561 x 10x-2
1016 = 10x-2
x = 18
112. If 3x-y = 27 and 3x+y = 243 then x is equal to
Answer :
Choice 'C' is correct as
3x-y =27 3x+y =243
(3)3 = 3x-y (3)5 = 3x+y
x-y = 3 x+5 = 5
(x-y)+(x+y)=3+5
2x = 8
x = 4
113. If log 2 log, log 2 x = 0, then x is
114. The LCM of (3!, 4!, 5!) is
Choice 'C' is correct as
L.C.M OF (3! 4! 5!)
3! = 3X2X1
4! = 4X3X2X1
5! = 5X4X3X2X1
LCM = 5! = 120
115. A polygon of n sides has two diagonals.The value of n is
Choice 'A' is correct as
no of diagonals = nc2 -n
2 = n (n-3) / 2
4 = n(n - 3)
4 = n2-3n
0=n2 - 3n - 4
=n2 - 4n + n - 4
=n(n-4) + 1(n-4)
n=4 or n≠-1
116. Express 5 x 6 x 7 x 8 x 9 in factorial notation.
Choice 'C' is correct as
5 x 6 x 7 x 8 x 9
in the given product if we multiply
1x2x3x4 / 9!, then
1x2x3x4x5x6x7x8x9
=9! / 4!
117. If the product of the roots of ax2 +2x + 6 = 0 is 3, then the sum of the roots is
Choice 'B' is correct as
2 + β = -b / a
= -2/a
=-2/2
=-1
product = c / a
3 = 6/a
a=2
118. If the equation x2 - (p+4) x + 2p + 5 = 0 has two equal roots , then the value of p is
Choice 'D' is correct as
x2 - (P+4)X + 2P + 5 = 0
a = 1 , b = (P+4) , c = 2P + 5
b2 - 4ac = 0
(P + 4)2 - 4(1)(2P + 5)
(P + 4)2 - 8P - 20 = 0
P2 + 8P + 16 - 8P - 20 = 0
P2 = 4
P=±2
119. A bottle manufacturing company manufactures and sells bottles. Each bottle costs ₹40 to make and the company’s fixed cost is ₹5000.the price function given by P(x) = 300 - 2x. Then the profit maximizing output is
Answer :
120. If y = (2x + 3)4 , then dy / dx is
Answer :
Choice 'A' is correct as
y = (2x + 3)4
dy / dy = (4.2x)3 + (12)3
=4 (2x + 3)3
121. Statistical data collected bynthe government agency for surveying some matters is
Answer :
Choice 'C' is correct as
Statistical data collected by a government agency for surveying some matters can be both primary and secondary data, depending on how it's collected and used.
Primary data refers to data that is collected firsthand by the agency for a specific purpose, directly from individuals or entities.
Secondary data refers to data that is already collected by someone else for a different purpose and is reused or analyzed by another party, such as data from existing studies or sources.
Therefore, the correct answer is:
D. both primary and secondary data
122. Which of the following diagrams is used to find the value of the mode graphically ?
Answer :
Choice 'C' is correct as
The histogram is used to find the value of the mode graphically. The mode is the value that appears most frequently in a data set, and in a histogram, it corresponds to the highest bar.
Therefore, the correct answer is:
C. Histogram
123. The cumulative frequency table is required to find out which of the following ?
Answer :
Choice 'B' is correct as
The cumulative frequency table is required to find out the median. The median is the value that separates the higher half from the lower half of the data set, and the cumulative frequency helps to determine the position of this value within the data.
Therefore, the correct answer is:
B. Median
124.The average of lower and upper class limits is called
Answer :
Choice 'A' is correct as
The average of the lower and upper class limits is called the class-mark (or class midpoint). It is calculated by taking the sum of the lower and upper class limits and dividing by 2.
Therefore, the correct answer is:
A. class-mark
125.The algebraic sum of the deviations of 10 observations measured from 30 is 20.the arithmetic mean of the observations is
Answer :
Choice 'D' is correct as
∑d2 = 20
A = 30
x̄ = A + ∑d2
= 30 + 20/10
=32
126. if the harmonic mean of 2,a and 8 be 24 / 7 , then the value of a is
Answer :
Choice 'B' is correct as
H.M = n / [ (1/x1) + (1+x2) + (1+x3)]
24/7 = 3 / (1/2) + (1/a) + (1/8)
(24/7) x (4a + 8 + a) / 8a = 3
3 x (5a + 8) / (a) = 3
3 (5a + 8) = 21a
15a + 24 = 21a
24 = 6a
a = 4
127. The variables x and y are related by 4x - 3y = 5. If the median and mode of the variable x are 4 and 5 respectively , then the mean of y is
Answer :
Choice 'A' is correct as
3M - 2x̄ = Z
3(4) - 2x̄ = 5
12 - 2x̄ = 5
x̄ = 3.5
4X - 5 = 3y
4(3.5) - 5 / 3 = y
y = 3
128. The range of first five prime numbers is
Answer :
Choice 'D' is correct as
Range = Highest - Lowest
1 st 5 prime numbers = 2,3,5,7,11
R= Hx - Lx
=11 - 2
=9
129. For a sample of 10 observations,∑x =20 and ∑x2 =20 then the standard deviation is
Answer :
Choice 'C' is correct as
S = √∑x2 / n - (x̄)2
=√200/10 - 4
=√20-4
s=4
130. For a symmetrical distribution Q1 = 34 and Q3= 42. Using Bowley’s measure of skewness, find the median of the distribution.
Answer :
Choice 'D' is correct as
Q1 = 34 , Q3= 42
M = Q3 + Q1 /2
=(34 + 42) / 2
=38
131. If cov (x,y) = 12 , var(x) = 9,var(y) = 25 , then the correlation coefficient is
Answer :
Choice 'B' is correct as
r = cov (x,y) / sy x sx
=12 / 3 x 5
= 0.8
132. If var(x) = 144, s.d.(y) = 18 and r (x,y) = 0.9 0.9. then the value of byx is
Answer :
Choice 'D' is correct as
byx = r x sy/sx
=0.9 x 18/2
=1.35
133.Find the regression line y on x from the following data:
n=10,∑x = 120 , ∑y =150 , ∑(x - 12)2 = 125 ,∑(y - 15)2 = 180,∑(x - 12) (y - 15)=90 then the value of the correlation coefficient between x and y is
Answer :
Choice 'A' is correct as
r = ∑(x - x̄) (y - ȳ)/ √∑(x - x̄)2 √∑(y - ȳ)2
= 90/ √125 x √180
= 90/ √22500
= 0.6
134. The regression coefficient of x on y and v on x are - 1.2 and - 0.3 respectively. The correlation regression coefficient between x and y is
Answer :
Choice 'B' is correct as
bxy = -1.2
byx = -0.3
r = √bxy x byx
=√-1.2 x -0.3
r = -0.6
135. If x̄ = 6 , ȳ = 7,byx=0.45,bxy=0.65,then the regression equation of x on y is
Answer :
Choice 'D' is correct as
x or y
x - x̄ = bxy (y - ȳ)
x - 6 = 0.65(y - 7)
x - 6 = 0.65y - 4.55
x = 1.45 + 0.65y
x - 0.65y = 1.45
136. The correlation coefficient between shoe size and intelligence of a person is
Answer :
Choice 'C' is correct as
The correlation between shoe size and intelligence of a person is generally considered to be non-sensical because there is no logical or scientific basis for a meaningful relationship between these two variables. Thus, any observed correlation would be coincidental and not indicative of a real association.
Therefore, the correct answer is:
C. non-sense correlation
137. The correlation coefficient of ranks of n students in two subiects of a test is 0.25 and the sum of squares of differences of the ranks is 63. the number of students appeared in the test is
Answer :
Choice 'A' is correct as
r=0.25 ∑(d)=63
r = 1-6∑(d)2 / n(n2-1)
0.25 = 1-6(63) / n(n2-1)
0.25 = 1-378 / n(n2-1)
n(n2-1) = -378/-0.75
= 504
n=8
138. if for the events A and A0 ,p(A) = p(A0).then events A and Ao are
Answer :
Choice 'C' is correct as
P(A)+p(A0)=1 (because A and A0 are complements).
Given P(A)=P(A0) , it implies P(A)=1/2 and P(A0)=½
Since A and A0 are complements, they are mutually exclusive (they cannot both occur at the same time), and they are equally likely (since their probabilities are equal)
Therefore, the correct answer is:
C.mutually exclusive and equally likely both
139. Two perfect dice are thrown simultaneously.The probability of getting a sum 8 is
Answer :
Choice 'D' is correct as
U = {11 21 31 41 51 61
12 22 32 42 52 62
13 23 33 43 53 63
14 24 34 44 54 64
15 25 35 45 55 65
16 26 36 46 56 66}
5/36
So, the correct answer is:
D. 5 / 36
140. For the events A and B , if p(A)=½ and p(B)=7/12 , then p(A | B) is
Answer :
Choice 'A' is correct as
P(A | B) = P(A∩B) / P(B)
= (3/12) x (3/1)
= (3/4)
P(AUB) = P(A) + P(B) - P(A∩B)
7/12 =1/2 +1/3-P(A∩B)
P(A∩B) =1/2 +1/3 - 7/12
=(6+4-7)/12
=3/12
141. Two events A and B are said to be independent if
Answer :
Choice 'C' is correct as
Two events A and B are said to be independent if the occurrence of one event does not affect the probability of the occurrence of the other event. This can be mathematically expressed as:
P(A∣B)=P(A)
So, the correct answer is:C.
P(A∣B)=P(A)
142. A card is drawn at random from a well-shut Hod pack of 52 cards. The probability of drawing a king or queen of spade is
Answer :
143. A perfect die is thrown. Then probability of getting an even number or a number multiple of 3 is
Answer :
144.Using a 3-year weighted moving average with weights 1 , 2 , 1, find the trend value for the 4th year for the following series:
Year: 1 2 3 4 5 6 7
Values: 2 4 5 7 8 10 13
Answer :
145.Calculate the weighted average of price relative index number from the following data:
Item Weight Base year Cunent year
|
Item |
Weight (in %) |
Base year price (in ₹) |
price (in ₹) |
|
I |
40 |
9 |
4 |
|
ll |
30 |
5 |
6 |
|
III |
20 |
4 |
5 |
|
IV |
10 |
2 |
3 |
Answer :
146. If ∑p0q0=1360 , ∑pnq0=1900, ∑p0qn=1344, ∑pnqn=1880 then Laspeyres price index number is
Answer :
Choice 'A' is correct as
IP = ∑Pnqo / ∑P0qo x 100
=(1900) / (1360) x 100
=139.70
147. If Laspeyres’ price index = 147.28 and Paasche’s price index = 143.26,then Bowley ’s price index number is
Answer :
148. If a perfect coin is tossed 3 times, the probability of gating exactly 2 heads is
Answer :
Choice 'c' is correct as
U = {HHH, HHT, HTH, HTT, THH, THT, TTH, TTT}
So, the correct answer is: c = 3/8
149. Given : P(B1)=P(B2)=½, P(A|B1)=⅓,P(A|B2)=⅔ .using Bayes’ theorem,find P(B1|A).
Answer :
150. If A be an event, then which one of the following statements is TRUE?
Answer :
Choice 'c' is correct as
This is because the probability of any event A must lie between 0 and 1, inclusive. This range reflects that an event cannot have a probability less than 0 or greater than 1.
151. Welfare definition of economics was given by ________
Answer :
Choice "A" is correct as
This definition was given by Alfred Marshall. He was the follower of Adam Smith. He wrote a famous book “Principles of Economics” (or) “Principles of Political Economy” in 1870.
Definition:
“Economics is the study of mankind in ordinary business of life. It examines that part of individual and social action which is most closely connected with the attainment and with the use of material requisites of well being”.
152. Which is not a characteristic of human wants ?
Answer :
Choice "B" is correct as
Human wants are generally considered to be unlimited. People continuously desire more goods and services, even when some needs are satisfied. The other characteristics—satiable, recurring, and competitive—are true of human wants.
Therefore, the correct answer is Wants are limited.
153. ______ elasticity refer to demand for a commodity in relationship with the price of a close substitute
Answer :
154. Market potential is also known as ______ demand
Answer :
155. The Law of Variable Proportions was not propounded by ______
Answer :
Choice "D" is correct as
The Law of Variable Proportions was not propounded by:
Keynes
The Law of Variable Proportions, often discussed in the context of classical economics and production theory, was primarily developed by economists like Alfred Marshall. It is associated with concepts in microeconomics and production, while John Maynard Keynes is known for his work in macroeconomics, particularly his theories on aggregate demand and employment.
Therefore, the correct answer is Keynes.
156. All factors of production become variable in the
Answer :
Choice "C" is correct as
All factors of production become variable in the long run. In the long run, a company or business has the ability to adjust all inputs, including land, labor, capital, and technology to produce a different output. This can include building new factories, purchasing new equipment, or acquiring new land. The long run allows for more flexibility in terms of production as it allows firms to make significant changes to their inputs and production processes to increase or decrease output. This also applies to the service industry, they can change their location, expand the business or even change their service offerings.
157. ______ cost is also known as variable cost
Answer :
Choice "A" is correct as
Variable costs are costs that vary with the level of output or production. They include costs like raw materials, direct labor, and utilities that increase or decrease as production levels change. Another common term used for variable costs in accounting and economics is "product cost."
Therefore, the correct answer is Product.
158. _____ costs are irrelevant with regard to will be optimum size
Answer :
Choice "D" is correct as
Sunk costs are costs that have already been incurred and cannot be recovered. They are irrelevant to current decision-making because they do not affect future costs or revenues. When determining the optimal size of a firm or production level, decision-makers should focus on relevant costs (such as variable costs and opportunity costs) that can change with different decisions.
Therefore, the correct answer is Sunk costs.
159. under _____ competition , every firm will be of optimum size
Answer :
Choice "B" is correct as
In perfect competition, firms are price takers, meaning they cannot influence the market price of the product they sell. They produce at the point where marginal cost equals marginal revenue (MC = MR) to maximize their profits. This condition leads each firm to operate at its optimum size, where it produces at the minimum efficient scale (MES) and achieves productive efficiency.
Therefore, the correct answer is perfect competition.
160. Imperfect market is classified as ______ types
Answer :
Choice "C" is correct as
The imperfect market appears in various forms. They are 1. Monopoly 2. Duopoly 3. Oligopoly 4. Monopolistic competition
Therefore, the correct answer is 4 types.
161. Oligopoly means ______
Answer :
Choice 'B' is correct as
Oligopoly is a market structure in which a small number of firms dominate the market and control a large portion of the industry's total output. The term "oligopoly" comes from the Greek words "oligos," meaning "few," and "polein," meaning "to sell."
162. In ______ sellers is the price makers
Answer :
163. The Kinked Demand Curve Model of oligopoly was developed by _______
Answer :
Choice 'C' is correct as
The Kinked Demand Curve Model of oligopoly was developed by Paul Sweezy.
Paul Sweezy, an American economist, proposed the Kinked Demand Curve model in the 1930s. This model attempts to explain price rigidity in oligopoly markets. According to this model, firms in an oligopoly face a demand curve that is kinked at the current market price level. The demand curve is relatively elastic above the current price because if one firm raises its price, its rivals will not follow suit, leading to a significant loss in market share. Below the current price, the demand curve is relatively inelastic because if one firm lowers its price, its rivals will match the price cut, preventing any gain in market share.
Therefore, the correct answer is Sweezy.
164. The market state that satisfies all the essential features of a perfect competition market except identity of a product is known as ______
Answer :
Choice 'D' is correct as
Monopolistic competition is a market state that satisfies most of the essential features of a perfect competitive market, but with one key exception: the identity of the product. In a perfectly competitive market, all firms produce identical products, while in monopolistic competition, firms produce differentiated products.
165. In _______ market , the firm has no definite demand curve
Answer :
166. The act of selling the same commodity at different prices to different buyers is known as _____
Answer :
Choice 'B' is correct as
The act of selling the same commodity at different prices to different buyers is known as differential pricing.
Differential pricing occurs when a seller charges different prices to different customers or groups of customers for the same product or service. This pricing strategy can be based on various factors such as quantity purchased, location, customer segment, or timing of purchase. It allows the seller to capture consumer surplus and maximize profits by tailoring prices to different segments' willingness to pay.
Therefore, the correct answer is differential pricing.
167. Penetration pricing is adopted by following a ______
Answer :
Choice 'A' is correct as
Penetration pricing is a pricing strategy where a product is initially priced at a low level to attract customers and gain market share quickly. This strategy aims to penetrate the market and build a customer base by offering a lower price compared to competitors. Over time, the price may be adjusted upward once the product gains acceptance and market share.
Therefore, the correct answer is low price.
168. Three degrees of prices discrimination
Answer :
169. In the long run, price is governed by ________
Answer :
170. Types of money may be of _____ groups
Answer :
Choice 'C' is correct as
In any economic system usually, there are the operations/circulations of four different types of money. They are commodity money, fiat money, Fiduciary Money and commercial bank money
171. Quantity Theory of money was propounded by ______
Answer :
Choice 'A' is correct as
The Quantity Theory of Money was propounded by Irving Fisher.
Quantity Theory of money deals with the relationship between quantity of money and price level of economy. Here we discuss three versions of the quantity theory of money.The quantity theory of money explains about the value of money. Irving Fisher gave an equation to determine the value of money. Irving Fisher used an equation [MV = PT]
Therefore, the correct answer is Irving Fisher.
172. Medium of exchange is one among the _______ function of money ( ALREADY THERE IN YV SABOO)
Answer :
Choice 'B' is correct as
The primary functions of money are really the technical and important functions of money. They are of two types: Medium of Exchange AND Measure of Value
173. The money supply affects the rate of interest . When the money supply increases, rate of interest decreases . This has been stated by ________
Answer :
Choice 'A' is correct as
The statement that an increase in the money supply leads to a decrease in the rate of interest is a concept attributed to Keynes.
According to J.M. Keynes, the money supply affects the rate of interest. When the money supply increases, the rate of interest will be decreased. It leads to the increase of investment level of employment, income, demand, price level etc., when the price level increases there is a decrease in the value of money. According to Keynes, the rate of interest plays a dominant role in determining the value of money.
Therefore, the correct answer is Keynes.
174. Collection of cheque is one among the ________functions.
Answer :
Choice 'B' is correct as
Collection of cheques is one among the agency functions of banks.
Agency functions refer to the various services provided by banks on behalf of their customers, which include:
(a) Collection of cheques, drafts, bills of exchange etc. of their customers from other banks. (b) Collection of dividends and interest from business and industrial firms. (c) Purchase and sale of securities, shares, debentures, government securities on behalf of the customers. (d) Acting as trustees and keeping their funds in safe custody, acting as executors and executing the will of the customers after their death. (e) Making payments such as insurance premium, income-tax, subscriptions etc. on behalf of their customers as per their advice.
Therefore, the correct answer is agency.
175. The RBI was nationalised in _________ ( ALREADY THERE IN YV SABOO)
Answer :
Choice " B " is correct as -
The correct information is that RBI was nationalized in January 1949. Nationalization involved the transfer of the ownership and control of the RBI from private shareholders to the Government of India. This move was aimed at enhancing the central bank's role in shaping and implementing monetary policy for the benefit of the Indian economy.
176. IFCI was established in _______
Answer :
Choice 'B' is correct as
It was established on 1st July 1948. The main objective of IFCI is to make medium and long term credit to the industrial units.
177. The main purpose of the ______ is regulating business in the stock market and other securities markets
Answer :
Choice 'A' is correct as
It was set up in 1988. It got statutory reorganization in 1992. The main purpose of the SEBI is regulating business in stock markets & other securities markets.
Therefore, the correct answer is SEBI.
178. Commercial banks create money on the basis of _______
Answer :
Choice 'A' is correct as
Commercial banks create money primarily on the basis of cash deposits.
When customers deposit cash into their bank accounts, banks are required to hold only a fraction of these deposits as reserves (statutory reserve or required reserve ratio) and can lend out the remainder. This process of lending creates new deposits in the banking system, effectively increasing the money supply beyond the initial cash deposits.
Therefore, the correct answer is cash deposits.
179. Monetary policy is formulated by the _______.
Answer :
Choice 'A' is correct as
Monetary policy is formulated by the RBI (Reserve Bank of India).
The Reserve Bank of India is the central bank of the country and is responsible for formulating and implementing monetary policy. Monetary policy refers to the actions undertaken by the central bank to regulate money supply, interest rates, and credit availability in the economy, with the goal of achieving macroeconomic objectives such as controlling inflation, promoting economic growth, and ensuring financial stability.
Therefore, the correct answer is RBI.
180. ______ environment is beyond the control of the business
Answer :
Choice 'B' is correct as
The environment that is beyond the control of the business is the External environment.
External environment refers to factors, forces, and conditions outside the organization that can potentially influence its operations and performance, but which the organization has little or no control over. These factors include economic conditions, political and legal factors, technological changes, socio-cultural trends, market competition, and so on.
Therefore, the correct answer is External.
181. ______ environment does not form part of an organisation ‘s micro environment
Answer :
Choice 'C' is correct as
The environment that does not form part of an organization's micro environment is Legal environment.
An organization's micro environment typically includes SUPPLIERS, CUSTOMERS, COMPETITORS, MARKETING INTERMEDIARIES, MARKET AND ORGANIZATION.
Therefore, the correct answer is Legal.
182. External business environment has been classified into ______ groups
Answer :
Choice 'A' is correct as
This external business environment can be classified into two – micro environment and macro environment
183. The term “T” in SWOT analysis stands for ________.
Answer :
Choice 'C' is correct as
In SWOT analysis, the term "T" stands for "Threats." SWOT analysis is a strategic planning tool used to evaluate the strengths, weaknesses, opportunities, and threats facing an organization. The "T" category refers to the external factors that could negatively impact the organization's performance, such as changes in market trends, economic downturns, increased competition, regulatory changes, or technological advancements by competitors.
By identifying potential threats, an organization can develop strategies to mitigate or eliminate them, minimizing their impact on the organization's operations and performance. This may include adjusting business strategies, investing in new technology or processes, diversifying products or services, or developing contingency plans to address potential threats. Overall, SWOT analysis provides organizations with a framework to identify and analyze key internal and external factors that may impact their operations, helping them to make informed decisions and improve their overall performance.
184. The term “S” in PESTEL stands for _______
Answer :
Choice 'B' is correct as
the "S" in PESTEL analysis can sometimes stand for "Socio-economic," depending on the specific context and industry being analyzed.
In some cases, the social and economic factors are combined under a single "Socio-economic" category, while in other cases they are analyzed separately.
185. ________ Factors represent the demographic characteristics , norms , customs and values of the population within which the organisation operates
Answer :
Choice 'B' is correct as
Socio-cultural environment comprises of social traditions, values and beliefs, level and standards of literacy and education, the ethical standards and state of society, the extent of social stratification, conflict and cohesiveness and so forth. The core beliefs of a particular society tend to be persistent. It is difficult for businesses to change these core values, which becomes a determinant of its functioning.
Therefore, the correct answer is Social.
186. Stewardship theory was developed in _________.
Answer :
Choice 'A' is correct as
Stewardship theory was developed in 1997.
187. Which of the following is not an agency cost
Answer :
Choice 'C' is correct as
The authors defined agency costs as the sum of (i) the
monitoring expenditure by the principal, (ii) the bonding expenditures by the agent, and (iii) the residual loss,
Concurrent loss is not an agency cost.
188. ______ is concerned with marshalling the human and other resources of the organisation
Answer :
Choice 'B' is correct as
Directing is concerned with marshalling the human and other resources of the organization.
189. _______ stated that management art of getting things done through people
Answer :
Choice 'B' is correct as
Mary Parker Follett stated that management is the art of getting things done through people.
190. Determining the time sequence job is called ______
Answer :
Choice 'C' is correct as
Determining the time sequence job is called scheduling.
191. ______ is the process of dividing the work of the organisation into various units or departments
Answer :
Choice 'A' is correct as
The process of dividing the work of the organisation into various units or departments is called Departmentation.
192. Which of the following is an ‘on- the - job training’ method ?
Answer :
Choice 'C' is correct as
The methods employed to make the on-the-job training are as under:
193. ________ is what a communicator is communicating
Answer :
Choice 'A' is correct as
The message is what a communicator is communicating
194. Under the ______ style of leadership, the policy is to leave things to take their own course , without interfering
Answer :
Choice 'A' is correct as
Under the Laissez - faire style of leadership, the policy is to leave things to take their own course , without interfering
195. ________ is the process of entrusting part of the work by the superior to his / her subordinates
Answer :
Choice 'C' is correct as
Delegation of authority is “the process a manager follows in dividing the work assigned to him so that he performs that part which only he, because of his unique organisational placement, can perform effectively and so that he can get others to help with what remains.” The delegation of authority by superiors to subordinates is obviously necessary for the efficient functioning of any organisation, since no superior can personally accomplish or completely supervise all organisations.
196. Management may force worker to call off a strike by giving an ultimatum that otherwise they will be suspended. This is the use of _______ power
Answer :
Choice 'D' is correct as
Management may force workers to call off a strike by giving an ultimatum that otherwise they will be suspended . This is the use of Coercive power
197. ________ leadership is a leadership philosophy in which the goal of the leader is to serve
Answer :
Choice 'D' is correct as
Servant leadership is a leadership philosophy in which the goal of the leader is to serve
“The servant-leader is servant first… It begins with the natural feeling that one wants to serve, to serve first. Then conscious choice brings one to aspire to lead. That person is sharply different from one who is leader first, perhaps because of the need to assuage an unusual power drive or to acquire material possessions…The leader-first and the servant-first are two extreme types. Between them there are shadings and blends that are part of the infinite variety of human nature.
198. Maslow ‘s theory explains about ________.
Answer :
Choice 'A' is correct as
Maslow ‘s theory explains about human needs
Maslow’s need priority model of motivation has gained extensive popularity because it is simple and logical. It is compatible with the economic theory of demand. The theory helps to explain why a person behaves differently in two similar situations. It provides an insight into what is common to all. It extends to all areas of human life and is not limited to work situation alone. But there is little empirical support for it because its propositions could not be vigorously tested through empirical research. The theory could not be validated but it is said to contain some fundamental truths which do not require any proof.
199. Programmed decisions are usually taken by the _________ managers
Answer :
Choice ‘C' is correct as
The programmed decisions are of routine and repetitive natures which are to be dealt with according to specific procedure, they are usually taken by the lower level manager
200. Decision - making is a part of the function ___________
Answer :
Choice ‘A' is correct as
Decision-making is a part of the function planning.
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