ENGLISH

SKV VIDHYAASHRAM SENIOR SECONDARY SCHOOL

PROSE-1-LESSON:1- THE LAST LESSON
ANSWER
S.NO QUESTION OPTION-A OPTION-B OPTION-C OPTION-D
KEY
For the last two years,
where did all the bad news
1 come from? the bulletin board town hall school M.Hamel's house a

Who asked franz not to

2 hurry to school? old hauser former mayor former postmaster blacksmith watcher d

what was M.Hamel going

3 to question franz about? participles adjectives old primer ba be bi bo bu a

What was unusual about wore a brand new wore clothes he wore wore traditional french
4 M.Hamel's dress? wore clean clothes outfit on prize days clothes c

Who sat on the back on the

5 last lesson? franz prussians the village people the new teacher c
teach german in
What order had come schools of alsace and to open a new school in that hamel would have to
6 berlin? to close the school lorraine alsace and lorraine leave b

Why did hamel blame not having taught them giving students a
7 himself? enough french not being strict holiday at times not being responsible c
What does the last lessin
taught by hamel no more teaching of domination of loss of language and loss
8 symbolize? french prussia learning of germen of freedom d
 ANSWER
S.NO QUESTION OPTION-A OPTION-B OPTION-C OPTION-D
KEY
What is the moral that the
alphonse daudet wants to not to put off things that old order change to one should accept teachers should be
9 bring out? one can do that day new everything that happens respected a
What does the marching of
soldiers under the windows dawn of prussia in
10 represent? the departure of hamel france freedom for franz sorrow of the villagers b

.What does M. Hamel‘s

11 motionless posture reflect? the school is dismissed sense of finality changing order of life feeling of nostalgia c

Why does Hamel blame the they preferred children they did not come to M. they did not love the
12 parents? to work in farms they were not strict Hamel‘s class French language a

when people are

Franz thinks- will they deprived of their
make them sing in German- German would use essence even the
even the pigeons? What brutal force over harsh orders will be surroundings are the Germans will rob
13 could this mean? everyone passed affected. France of its language c
Why does the author urge
the reader to respect his It is what makes you It is the key to You can express It is unique and reflects
14 language? respect your countrymen freedom yourself literature and art. b
M. Hamel is introduced as
a ruler-wielding teacher.
15 This demonstrates that: he is concerned he is adamant he is unfeeling he is a hard taskmaster a
M. Hamel emerges as a
when he teaches his last
16 lesson meek person true patriot repentant man defeated the man b
What was Franz banking to quietly walk in when
on to enter the class as he M.Hamel‘s teaching on commotion in the Hauser helping him everyone was
17 was late? the blackboard class sneak in preoccupied with d
 ANSWER
S.NO QUESTION OPTION-A OPTION-B OPTION-C OPTION-D
KEY

Which district came under the southern districts of

18 the Prussian rule? Alsace and Berlin Berlin and Lorraine Alsace and Lorraine France c
Franz looked for
opportunities to skip
19 school to do what? work on mills go fishing water the plants collect birds eggs d
‗Viva la France‘ became an
emotional evidence of M. finality and nostalgia and emotional love for the school and
20 Hamel‘s? sadness and patriotism. depression. outburst. teaching as a profession d
what does 'Long Live
France' prove in the
21 chapter 'The Last Lesson'? sadness patriotism finality all of the above d
What was the name of
Franz's school teacher in
22 the chapter The Last robert genero ogden nash ruskin timber M.Hamel d

SKV VIDHYAASHRAM SENIOR SECONDARY SCHOOL

PROSE-2-LESSON:2- THE LOST SPRING

ANSWER
S.NO QUESTION OPTION-A OPTION-B OPTION-C OPTION-D
KEY

Who is the author of Lost

23 Spring? James Bond Arundhati Roy Sudha Murthy Anees Jung d
This story is an excerpt
from which book of the Lost Spring - Stories of
24 author? Stolen Childhood Unveiling India Breaking the Silence The Song of India a
 ANSWER
S.NO QUESTION OPTION-A OPTION-B OPTION-C OPTION-D
KEY

What does the author Poor children and their

25 analyze in the story? Rich people Garbage exploitation Her works c

What is the central theme Pitiable Poor children

26 of the story Lost Spring? and their lost childhood Garbage Saheb and Mukesh Spring Season a

What forces the children to

27 live a life of exploitation? Greed Extreme Poverty Peers Parents b
According to the author
what was garbage for the
28 parents? Means of entertainment Means of joy Means of sorrow Means of survival d
According to the author
what was garbage for the
29 children ? Means of entertainment Means of timepass Means of playing A wonder d

30 Who was Saheb? A shopkeeper A servant A ragpicker All c

What was Saheb looking

31 for? Eggs Gold Coins Toys b

Is Saheb happy working at No, earning but no

32 the tea stall? Yes Yes, he earns money No earning freedom d
 ANSWER
S.NO QUESTION OPTION-A OPTION-B OPTION-C OPTION-D
KEY

Why did Saheb -e- Alam Had no money to pay

33 not go to school? Not interested fees Wanted to go for movie Wanted to earn money b

What is the meaning of

34 Saheb -e- Alam? Owner Rich man Poor man Lord of the Universe d

Where was Saheb At a tea stall in

35 employed? Seemapuri At a saree shop At a jewellery shop At a sweet shop a
Why is the author calling
garbage as 'gold' in the Because of its
36 story? Because of jewels in it Because of gems in it Because of gold in it encashment value d
What do the boys appear
like to the author in the
37 story? Morning crows Evening crows Morning birds Evening Birds c

Name the birthplace of the

38 author. U.S.A California Koch Rourkela d

What does the title 'Lost Lost blooming

39 Spring' symbolise? childhood Autumn season Lost money Lost age a

Saheb hailed from which

40 place? Delhi Seemapuri Greenfields of Dhaka None c
 ANSWER
S.NO QUESTION OPTION-A OPTION-B OPTION-C OPTION-D
KEY

Why did Saheb go through

41 garbage dumps? To find a silver coin A rupee A ten rupee note All of these d

Why did Saheb leave his Because the storm swept To enjoy a life of
42 house? away his house and field leisure To find friends To go to college a

What forced Saheb to be a

43 ragpicker? Hard work Destiny People around him Acute poverty d

44 Where is Seemapuri? In Noida South Delhi North Delhi East Delhi d

Why did Saheb leave Because of lack of Because of lack of

45 Dhaka?
Who are responsible for resources enough food Because of friends Because of parents b
the poor condition of
bangle makers in
46 Firozabad?
What efforts can help Parents Society Bureaucrats All of these d
Mukesh materialise his
dream of becoming a car
47 driver? Hard work Going to garage Guidance of his owner All these d
What are the hazards of
working in the glass
48 bangles industry? Poor health Impaired vision Miserable life All of these d
 ANSWER
S.NO QUESTION OPTION-A OPTION-B OPTION-C OPTION-D
KEY

Who employs the local The glass blowing

49 families of Firozabad? Bureaucrats Merchants Politicians industry d

What is the function of To mould glass and

50 glass blowing industry? To make windows To make doors To mould glass make colorful bangles d
What makes the working Dazzling and
conditions of the children Dark dingy cells without sparking of welding
51 worst in the glass industry? light and air light High temperature All of these d
What excuse do the rag
pickers give for not
52 wearing chappals? Mothers don't give No interest A tradition All these d

53 Who
Whatisare
Mukesh?
the reasons for Student Worker Bangle maker Ragpicker c
the migration of people
from villages to city in the Sweeping of houses and Education and
54 lesson? fields by storms No money unemployment Safety a
What compels the workers
in bangle industry of Cast and ancestral Karam theory and Bureaucrats and
55 Firozabad to poverty? profession society politicians All of these d

The city of Firozabad is

56 famous for what? For casteism For ragpickers For poverty For bangles d
 ANSWER
S.NO QUESTION OPTION-A OPTION-B OPTION-C OPTION-D
KEY

Firozabad is the centre of

57 which industry? Cotton industry Furniture industry Textile industry Glassblowing industry d
How is Mukesh's attitude
different from that of his Being daring, firm and
58 family? clear Being a fighter Being a coward Not clear a

What is the means of

59 survival in Seemapuri? Work Merchandising Education Ragpicking d
What is the metaphorical
symbol of Seemapuri in the
60 lesson? Poverty Exploitation Enjoyment A little hell d

61 What
What is Mukesh's
change dream?
did Anees To be a doctor To be a merchant To be a rogue To be a motor- mechanic d
Jung see in Saheb when
she saw him standing by
62 the
Howgate of the
many years later the As if lost his freedom Lost ownership Lost joy All of these d
author visited town and the
temple of a man from
63 vdipi? thirty years fourty years ten years fifty years a
In the background, where
lived new priest, there
64 were and plastic chairs red,black white, black red, white blue, white c
 ANSWER
S.NO QUESTION OPTION-A OPTION-B OPTION-C OPTION-D
KEY
Those who live here are
squatters who came from
bangladesh back in which
65 year? 1972 1971 1973 1970 b

How many ragpickers are

66 living in seemapuri 200,000 20000 100000 10000 d
which is more important
for survival than an
67 identity money food garbage all of these b

saheb is an his way to

68 which booth? milk garbage public all of these a

69 Firozabad is famous for its bangles pillow firewood none of these a

Firozabad is located in
70 which state? uttarkhand uttarpradesh bihar seemapuri b
how many children are
working in furance
71 industry? 10,000 200000 20,000 none of these c
SKV VIDHYAASHRAM SENIOR SECONDARY SCHOOL
PROSE-3-LESSON:3- DEEP WATER
ANSWER
S.NO QUESTION OPTION-A OPTION-B OPTION-C OPTION-D
KEY
 ANSWER
S.NO QUESTION OPTION-A OPTION-B OPTION-C OPTION-D
KEY

Who is the author of Deep William George

72 Water? William Shakespeare Bernard Shaw William Wordsworth William Douglas d

In which subject has the Science and Social

73 author graduated? English and History English and Science studies English and Economics d
For how many years had
the author taught in high
74 schoolthe
After in author
Yakima?was fed 2 years 4 years 3 years 5 years a
up with teaching , he
decided to opt for which
75 career? Medical Gardening Engineering A legal caree d

What is the story Deep Fear of water and the

76 Water speaking about? way to overcome it Fear of people Fear of dogs Fear of swimming a

How did the author's fear With courage, guidance

77 vanish? and determination With care With mother's words With guidance a
Young Men's
Young Men's Christian Christopher Young Men's Christian Young Men's Christian
78 Y.M.C.A stands for? Authority Association Army Associa d

79 Where is Yakima located? In Newzealand In California In Washington None of these c

Where did the writer go
when he was 3 or 4 years
80 old in the story? Washington New Zealand California Canada c
 ANSWER
S.NO QUESTION OPTION-A OPTION-B OPTION-C OPTION-D
KEY
Because of knocking
Why did he develop a fear down by waves at a Because of a young
81 of water? beach boy Because of instructor Because of his mother a

What is haunting the Terrible experience in

82 author? the pool Ghosts His mother's words A push by a young boy a

How did the author learn With the help of a With the help of his With the help of a
83 swimming? With the help of a rope friend mother swimming instructor d

What did William O

84 Doughlas desire for? Visit to California To be a judge To learn swimming To be with his mother c
What did the author realize
while drowning in the The lifeguard did not
85 pool? Terror in fear of death Swimming was fun come to his rescue All of these a

What is the theme of the Victory in facing the

86 story Deep Water? fear Being fearful To learn swimming All a

Deep water is an excerpt Of Men and

87 from which book? Fear of water Mountains How to Swim Fearless b

What does Deep Water

88 signify? Beauty Depth of Sea Depth of ocean Fear d

Who threw Douglas into

89 the swimming pool? A young boy Instructor Mother Watchman a
 ANSWER
S.NO QUESTION OPTION-A OPTION-B OPTION-C OPTION-D
KEY

What was the fear in

90 Douglas'
At the agemind?
of 3 or 4 To be defeated To be pushed Being drowned None c
Douglas visited the beach
with his father. What The sight of the sea The overpowering
91 causedwere
What a terror in his heart
the series of waves force of the waves The colour of the water All of these d
emotions and fears that
Douglas experienced when Mixed feelings of
92 he was thrown into the Fear Confidence Overconfidence confidence and fear d
What plans did he make to
come to the surface of the Triled to jump and push
93 pool? himself up Shouted Cried aloud Shouted "help" a

How did this experience

94 affect lesson
What the author?
did Douglas Became fearless Confident Overconfident Became hydrophobic d
learn from his experience
of drowning learning to Swimming is not
95 swim? Learnt swimming Love for swimming difficult Face the fear d
How did the instructor
make Douglas a good With the help of By pushing him into With the help of ropes
96 swimmer? Planning ropes the pool and belts d

What plan did Douglas Planned to get an Planned to swim Planned to watch
97 make to learn swimming? instructor more swimmers Planned to jump a

What does Douglas do to Used his mind and

98 save himself in the pool? pushed himself up Shouted aloud Called people Shouted help help a
 ANSWER
S.NO QUESTION OPTION-A OPTION-B OPTION-C OPTION-D
KEY
Why did Douglas fail to
come to the surface of the Because of fear of Because of inability to Because of fear and
99 pool as he hoped to? swimming Because of fear move inability to move d

What was the impact of the Hydrophobia was

100 pool incident? Developed fear Became confident Became overconfident revived d
How many times did
Douglas try to come to the
101 surface of the pool? Twice Once Five times Thrice d

Why did Douglas hate to

102 walk with
Why bare legs?
did Douglas' mother Ugly looking legs Fat legs Because of skin color Because of skinny legs d
recommend that he should
learn swimming at the Y. Because it was shallow
103 M.C.A swimming pool? Because it was local Because it was safe Because it was shallow and safe d
To overcome his fear of
Why did Douglas hire an To be confident in To compete with water and learn
104 instructor? swimming others To flaunt swimming d
―I crossed to oblivion, and
the curtain of life fell‖.
105 What does oblivion mean? spavilion changing room unconsciousness death c
Why was Douglas because he wanted to
determined to get over his swim in the waters of because his friend because he had a bet on because he wanted to
106 fear of water? the Cascade had challenged him it win a medal a
What was stopping
Douglas to get into the Memories of Memories of Instructions given by Memories full of terror
107 waters of Cascade? Washington California the instructor in the pool d
 ANSWER
S.NO QUESTION OPTION-A OPTION-B OPTION-C OPTION-D
KEY
How did Douglas make
sure that he had conquered By jumping into the By taking a lesson from By swimming into the
108 the olddistance
What terror? Douglas By visiting California waters the instructor lake Wentworth d
covered while swimming
across the lake
109 Wentworth? 4 miles 3 miles 5 miles 2 miles d

Where was the lake

110 Wentworth?
At first, why was the writer In New Hampshire in Washington in California in Washington D.C a
not much frightened when Because he thought that
he was thrown into the Because he was the lifeguard would
111 pool? Because he was sleeping intoxicated come to his rescue Because of confidence d

William douglas was a

112 friend and adviser of president kennedy president cleveland president roosevelt president clinton c
In the essay william
douglas talks about his fear
113 of fire lizards snake water d

The writer decided to learn fifteen or sixteen

114 to wim when he was about ten or eleven years old years old twenty years old eighteen years old a

He decided to learn
115 swimming
His motherin the pool
warned himat the local club his school Y.M.C.A country club c
against swimming in the
Yakima river because It it was meant only for many people had it had no lifeguards
116 had strong currents boating drowed there around c
 ANSWER
S.NO QUESTION OPTION-A OPTION-B OPTION-C OPTION-D
KEY

At the shallow end, the

117 Y.M.C.A pool was I foot deep four feet deep two or three feet deep five feet deep c

The pool's depth at the end

118 was twenty feet nine feet six feet eight feet b

the author hated to walk

119 naked to the pool as he had skinny arms bony chest skinny legs hairy legs c
The incident in childhood
had taken place at the
120 beach in florida washington new york california d
The introduction to the
Y.M.C.A swimming pool memories of holiday memories of father and
121 revived for douglas childhood fear of water at the beach son companionship a terrible accident a
The lesson deep water is stories of stolen the lofe of mahatma
162 taken from of men and mountains children gandhi endymion a
When did douglas decided
163 to learnwas
Where swim
Y.M.C.A pool 10-11 years old 5-6 years old 15-16 years old 13-14 years old a
164 located seemapuri firozabad yakima ellensburg c
When did douglas got fear
165 to water 5-6 years 12-13 years 8-9 years 3-4 years d
On which month did
douglas decided to got an
166 instructor september october november december b
made him extremely was not liked by
167 His fear of water ruined his trips guilty friends made him weak a
 ANSWER
S.NO QUESTION OPTION-A OPTION-B OPTION-C OPTION-D
KEY
With his hard work, conquered his fear of conquered Mount
168 Douglas had water Everest got a good job got a promotion a
After swimming across to
the other shore of Warm
Lake, Douglas shouted
with joy and his voice was
169 returned as an echo by Gilbert peak Everest peak Alps Blue Mountain a
Douglas swam the lake to
Stamp Act Island covering
170 a distance of five miles seven miles two miles one mile c
‗Now you can swim‘.
These words were spoken
171 by Douglas‘ father teacher in school uncle instructor d
Douglas‘ tension started
172 slackening after four months three months five months one month b
Douglas‘ swimming
173 A rope was attached to Douglas‘ legs Douglas‘ arms Douglas‘ belt trunks c
Every time Douglas
attempted to go inside
174 water, his legs would be shaky make him run help him keep afloat be paralyzed d
After the third
unsuccessful attempt to
spring up, Douglas thought floating in the River
175 that he was floating in space Yakima floating in the air floating in a rubber-tube a
the boy who had thrown
176 Douglas was seized by the lifeguard stark terror his friend him b
 ANSWER
S.NO QUESTION OPTION-A OPTION-B OPTION-C OPTION-D
KEY

SKV VIDHYAASHRAM SENIOR SECONDARY SCHOOL

PROSE-4-LESSON:4- THE RATTRAP

ANSWER
S.NO QUESTION OPTION-A OPTION-B OPTION-C OPTION-D
KEY
Who is the author of The
122 Rattrap? Selma Lagerlof Thomas B. Allen Howard Phillips Sudha Murthy a
Which country does the
123 author belong to? Singapore Sydney Sweden Switzerland c
Where has the story been
124 set up? Jewellery shops Forests of Sweden Roads of Sweden Mines of Sweden d
Sweden Mines are rich in
125 which ore? Brass Copper Steel Iron ore d
In what manner has the
126 story been narrated? Non-fictious style Realistic manner Fairy tale manner None of these c
What is the message of the Love and kindness are Kindness is Kindness encourages
127 story? powerful reformers. powerless thieves Thieves need reprimand a
This story revolves around Around Crofter and his Around peddler- the
128 whom? daughter Around crofter Around ironman Rattrap seller d
What does the rattrap seller
have to do to make his both
129 ends meet? Peddling Selling Begging Thievery and begging d
Why does the peddler knit
up various kind of Because of loneliness
130 thoughts? Because of greed Because of travelling and poverty None c
In peddler's view, what
131 does the world look like? A Rat A Jungle A Jigsaw A Rattrap d
 ANSWER
S.NO QUESTION OPTION-A OPTION-B OPTION-C OPTION-D
KEY
According to the seller
what leads us to various Wishes and greed of
132 miseries? Attractions People Friends comfort d
Why did the peddler have Because he wants to Because he wants to be
133 to take shelter? Because of his wishes steal with his friends Because he had no home d
Who offered shelter to the
134 Peddler? A beggar A friend A milkman An old Crofter d
What made the Peddler
135 finally change his ways? Edla's beauty His mistaken identity His greed Kindness and care d
What does the metaphor
Rattrap in the lesson Human greed and
136 signify? Humans Thieves Attractions distractions d
What lightens the Peddler's sense of
137 seriousness of the lesson? Peddler's greed Peddler's gossip Peddler's tricks humour d
What earns the sympathy
of the reader towards the His sense of humour and
138 peddler? His actions His stories His face innocent acceptance d
From where did the From his circumstances
Peddler get the idea of the From his friends' From Crofter's and miserable life
139 world being a Rattrap? situation behavior From Edla's words condition d
It was the exact
Why was he amused by his It was a good situation and was
140 idea of a rattrap? It was a bad joke comparison humorous None c
Why was the ironmaster so Because of his
talkative and friendly with resemblance to one of
141 the Peddler? Because he knew him. He was his friend He was his neighbour his old friend d
Why did Elda bring the Because of his
Peddler to her house for resemblance to her
142 Christmas cheer? Because she knew him He was very funny He was good looking father's old friend d
 ANSWER
S.NO QUESTION OPTION-A OPTION-B OPTION-C OPTION-D
KEY
Why did the Peddler leave Because his heart was
the stolen money in a changed with Edla‘s
143 Rattrap? Because of his plan To deceive them kindness None c
How is the Peddler
influenced by meeting the He was encouraged to He became a rattrap
144 Crofter and Edla? steal money seller His heart was changed None of these c
Why did Edla have doubts His fear and
145 about the Peddler? His behavior His words appearance None c
Why did the Peddler not He didn't want to In the greed of getting
146 reveal his true identity? Because of fear hurt them money None of these c
Why did the Peddler feel Because of his greedy
that he had fallen into the Because he fell into a Because he fell in Because his heart is action and pitiable
147 Rattrap? pit love with Edla changed circumstances d
Why did Crofter show 30 To share his feelings of
148 Kronor to the Peddler? To show him down To flaunt Because he is sad pride d
Why did the Peddler have Because of non-
to resort to begging and profitability of his
149 thievery? He was habitual of it Miserable life business None of these c
Who used to make
150 rattraps? Crofter Edla Ironmaster Peddler d
From where did the
Peddler get the material to
151 make rattraps? Shops Roads Streets Stores d
How did Crofter treat the
152 Peddler? Very rudely In a strange manner Friendly manner None of these c
Because he wants to
Why did Peddler sign meet Edla‘s
himself as Captain Von He didn't want to hurt Because he forgets expectations of him
153 Stahle? them his name being an armyman None of these c
 ANSWER
S.NO QUESTION OPTION-A OPTION-B OPTION-C OPTION-D
KEY
when the peddler
When does the ironmaster when he sees an old changes clothes and
154 realise his mistake? when the peddler speaks photograph cleans his face All of these c
What made the Peddler
155 finally change his heart? Edla's words Edla's appearance Edla's father Edla's goodness and care d
What was the Peddler's
profession and who he
156 was? Selling, traveller Begging, traveller Stealing, thief None of these c
Why did the Peddler feel due to others'
157 like stealing? has to repay a loan has to buy a drink habitual of it indifference to his needs d
How did the Crofter tempt
the Peddler to steal his By showing him
158 money? By his kindness By his warm care money None of these c
Why did the Peddler Because he had stolen He wanted to hide He wanted to remain at
159 decline the invitation? money He wanted to run money the mill a
How much money had the
peddler stolen from
160 Crofter? 20 kronors 10 kronors 40 kronors 30 kronors d
Why did Edla plead her Because he Because of sympathy
father not to send the resembled her and his poor life
161 Vagabond away? Because of her father father's friend Because she liked him condition d

SKV VIDHYAASHRAM SENIOR SECONDARY SCHOOL

PROSE-5-LESSON:5- INDIGO
ANSWER
S.NO QUESTION OPTION-A OPTION-B OPTION-C OPTION-D
KEY
 ANSWER
S.NO QUESTION OPTION-A OPTION-B OPTION-C OPTION-D
KEY
Who is the author of
177 Indigo? Louis Fischer Leo Tolstoy Mark Twain Charles Dickens a
Where was the author
178 born? in Philadelphia In Yugoslavia In Scotland None a
When did the author serve
179 in the British army? 1918 - 1920 1909 - 1910 1912-1913 1900-1902 a
Which University was the
180 author a member of? Harvard University Princeton University University of Columbia Oxford University b
Indigo is an excerpt from The Life of Mahatma
181 which book of the author? Men and Politics Life of Lenin Gandhi. None c
What is the message Wise and courageous
conveyed in the lesson leadership can resolve
182 Indigo? Efficient lawyers Speak aloud any problem None c
Why did M.K. Gandhi To secure justice for the To boast of his
183 fight in Champaran? oppressed To get popularity To show power intelligence a
What does Gandhi's fight The power of effective The power of
184 in Champaran signify? leadership lawyers The power of farmers The power of money a
Because of the Because their
Why was Motihari back Because of people's oppression of the champion was in
185 with peasants? rights British trouble None c
How did Gandhi address
the actions of the people As liberation from the By calling them
186 of Motihari ? fear of the British courageous By chiding the lawyers None a
What was Gandhiji's
demand from the British 30% refund as 40% refund as 50% refund as 10% refund as
187 landlords? repayment repayment repayment repayment c
How much did Gandhi ji
ask the Indigo planters to
188 pay to the farmers? 20% 40% 30% 50% d
 ANSWER
S.NO QUESTION OPTION-A OPTION-B OPTION-C OPTION-D
KEY
How much did Indigo
189 planters offer to pay? 30% 10% 25% 40% c
Were forced to give Were forced to give Were forced to give Were forced to give 5%
What was the condition of 10% of land for Indigo 20% of land for 15% of land for Indigo of land for Indigo
190 the Sharecroppers? plantation Indigo plantation plantation plantation c
How did Gandhiji help By fighting and securing By hiring lawyers for By teaching them
191 peasants of Champaran? justice for them them By educating them cleanliness a
What problems were faced
by the Champaran Indigo Were forced to grow
192 sharecroppers? Poverty Indigo Unable to raise voice Illiteracy b
To have detailed
information of the
Why did Gandhiji decide sharecroppers of To have information To know different To have a personal bond
193 to go to Muzaffarpur? Champaran about lawyers capacities of the people with the people a
Who briefed Gandhiji at
194 Muzaffarpur? Government officers Politicians Farmers Lawyers d
Who was Raj Kumar A government
195 Shukla? A lawyer official A politician A poor peasant d
Where was the annual
congress party session
196 held? At Varanasi At Mumbai At Bangalore At Lucknow d
Why did Raj Kumar
Shukla come to Lucknow To complain against
at Annual Congress party injustice of landlord
197 session? To be rich To be famous To fight and get money system in Bihar d
Why did Mr. Shukla meet to seek his guidance for to get ideas to be to learn the art of to seek his help for the
198 Gandhiji? his own upliftment famous speaking poor sharecroppers d
Why is Champaran Because Gandhiji For the first Satyagrah
199 famous? For fighting For Indigo visited movement in 1917 d
 ANSWER
S.NO QUESTION OPTION-A OPTION-B OPTION-C OPTION-D
KEY
Why was Satyagrah
Movement launched in For Gandhiji's For the upliftment of the
200 Champaran? upliftment For raising funds For getting business farmers d
A district of Bihar in
201 Where was Champaran? In Lucknow In Delhi In Uttar Pradesh British India d
What did the peasants pay 10% of landholding and 20% of landholding 10% of landholding 15% of landholding and
202 the British landlords? 15% of harvest and 15% of harvest and 25% of harvest entire Indigo harvest d
Why did the British want Because they got They gave 15% of
the peasant to pay orders from the Because they were landholding and entire
203 compensation? Because they freed them British headquarters leaving India Indigo harvest d

Why did Gandhiji agree to Because more than

the planter's offer of 25% Because of fear of Because of fear of money, prestige of
204 refund to the farmers? Because of money loss power farmers was important d
Who was Sir Edmund in A british An Administrator in
205 the lesson Indigo? A British lawyer Businessman A British Politician Indian Civil Services d
At Bihar & Orissa
Province in Bengal
Where was Sir Edmund Presidency of British
206 posted? In East India In Purvanchal In Uttarpradesh India d
He was not a law
What was the statement breaker and came to
that Gandhiji read pleading That he was a law That he wanted to render humanitarian
207 himself guilty? breaker command respect and national service None d
To protest the court's
Why did Gandhiji protest To humiliate the order to postpone the
208 at Motihari court house? To be famous To show his power British trial c
 ANSWER
S.NO QUESTION OPTION-A OPTION-B OPTION-C OPTION-D
KEY
Why did Gandhi consider To protest the courts'
the Champaran episode a Its voice spread far and order to postpone the
209 turning point? wide It became famous The British were scared trial d
How did Kasturba help By speaking to the By moving here and By teaching Ashram
210 Gandhiji? people By walking with him there rules and cleanliness a
What was the attitude of
the average Indian in
smaller localities towards Very fearful and
211 advocates of home rule? Very welcoming Very courageous Pleasing indifferent d
What was the purpose of To encourage people to
the advocates of home participate in the
212 rule? To get money To be popular To instigate the people freedom movement d
What was the condition of
the peasants in Terror stricken and
213 Champaran? Very happy Independent Very rich oppressed d
Whom did Gandhiji send a
214 telegram to ? Sir Edmund British Government Peasants Prof. J.B Kriplani d
Where did Gandhiji stay
215 for two days? At a peasant's house At a lawyer's house In a guest house At Prof. Malkani's house d
Because of the success
Why was the government Because of lawyer's Because of of Satyagrah movement
216 baffled? power Because of farmers sharecroppers by peasants d
Health conditions in
217 Champaran miserable tolerable under control fairly good a
Who volunteered to work two disciples of Gandhi Kasturba and the Mahadev Desai and his Narhari Prasad and his
218 in Champaran? and their wives eldest son of Gandhi wife wife a
 ANSWER
S.NO QUESTION OPTION-A OPTION-B OPTION-C OPTION-D
KEY
The representative of the
planters offered to
refund—– percent to the
219 peasants 5 10 20 25 d
For how long did Gandhi
220 remain in Champaran? seven weeks three months one and a half year seven months d

What amount of repayment

did the big planters think fifty percent of the no payment, just an
221 Gandhi would demand? repayment in full double the amount amount apology a
Gandhi was summoned by
222 ___ the Lt. Governor Sir Edward Gait Sir Henry Gait Sir Richard Andrews Sir Freer Andrews a
Who were ready to follow
223 Gandhi into jail? peasants lawyers Shukla J.B. Kriplani b
The magistrate asked
Gandhi to furnish bail for
224 __ minutes 30 60 90 120 d
How did Gandhi behave
with the officials outside he said that he would
225 the court? demonstrated his power was firm and resolute disobey the order cooperated with them d
he set out to meet the
a peasant had been secretary of British he set out to meet he was summoned by Sir
Why did Gandhi start out maltreated in a village Landlords British official Edward Gait, the Lt.
226 on the back of an elephant? nearby Association commissioner Governor a

SKV VIDHYAASHRAM SENIOR SECONDARY SCHOOL

POEM-1-MY MOTHER AT SIXTY-SIX
 ANSWER
S.NO QUESTION OPTION-A OPTION-B OPTION-C OPTION-D
KEY
ANSWER
S.NO QUESTION OPTION-A OPTION-B OPTION-C OPTION-D
KEY
Who is the poet of this
227 poem? John Keats Rudyard Kipling William Wordsworth Kamala Das d
for its originality,
What is her work known versatility and flavour of
228 for? the soil for its popularity for its style for the expressions used a
What is the kind of pain
and ache that the poet children screaming at
229 feels? Losing her mother heart attack headache her a
In which languages has
Kamla Das written stories
230 and novels? English and Tamil English and Hindi English and Urdu English and Malayalam d
Name the poetic devices
231 used in the poem. metaphor similie alliteration all of these d
What is the significance of
the title My Mother at Poet‘s fear of losing her Poet‘s fear of Poet‘s inability to
232 Sixty Six? old mother moving fast express her feelings All of these a

Which poetic device is

233 used in "Trees sprinting-" ? metaphor simile alliteration Personification d
narrative style using a
What is the distinctive single sentence in a set
234 feature of the poem? its metaphors simile used alliteration used of 14 lines d
a single thread of
What does this narrative thought mixed with
235 style of the poem signify? differing thoughts many thoughts contrasting thoughts harsh realities d
What is the main idea of discolouration of carelessness of a
236 the poem? Painful old age skin daughter lack of strength a
 ANSWER
S.NO QUESTION OPTION-A OPTION-B OPTION-C OPTION-D
KEY

What did the poet realize her mother's appearance

237 with pain? like a corpse she is inconsiderate old age is pleasant she has duties a
her childhood fear of her mother's weak
238 What is the familiar ache? losing her mother health her duties her helplessness a
fast moving change in
What do the running trees speed of the moving human life from
239 signify? fast moving appearance car childhood to old age none c
240 Who lives at Cochin? Poet Her parents Both A and B None of them a
What does 'ashen face ' face is covered with Pale and lifeless face of
241 signify? colour of face ash poet's mother to show ugly face c
What does the poet notice sprinting trees and
242 outside the car ? running children schools and roads other vehicles many people on the road a
What do the parting words Her optimistic
"See you soon Amma" farewell full of she bids goodbye like
243 signify? her carelessness cheerfulness this she is in a hurry b

What does the poet's smile Her assurance to mother she has a she has to do her duty
244 signify in the poem? and helplessness inside responsibility first she is a loving daughter a
What is the universality of
245 the theme of the poem? death is a truth Life is a reality everyone is happy to show old age a
What worried the poet
when she looked at her
246 mother? her face her broken arm her loving words her declining age d
Why did the poet look at because she was because she wanted to because of fear and
247 her mother again? because she was busy going away stay back insecurity d
Why has the poet used the
imagery of merry children to show youthfulness of to show hope and
248 spilling out of their homes? to show hope to show happiness her age happiness in children d
 ANSWER
S.NO QUESTION OPTION-A OPTION-B OPTION-C OPTION-D
KEY
Which Rhyming scheme is
249 used in the poem? coupled rhyme monorhyme Alternate rhyme free verse d
Quote an example of a
250 simile used in the poem familiar ache like that of a corpse wan and pale the merry children b
‗Trees sprinting, the
merry children
Quote an example of a spilling out of their Driving from my
251 metaphor used in the poem as a late winter's moon homes‘ parent‘s home None b
Quote an example of
alliteration used in the smile, smile and
252 poem like ashen smile Friday morning None of these d
Quote an example of
personification used in the
253 poem sprinting trees home to cochin airport's security check All of these a
Why does the poet feel Because of her duties Because of her mother's
254 scared? and commitments Because of her job Bcause of her children deteriorating health d
because of her duty
Why does the poet feel because she was fear of missing her towards mother and her
255 parted, upset and sad? because of her fears getting late flight own needs d
What is the tone of the resignation with
256 poem towards the end? sad hopeless cheerful acceptance c
What does the narrative
single sentence style of the poet‘s intertwining
257 poem highlight? Poet's feelings Poet's insecurities poet's thoughts thoughts d
What does the poem poet's love for her
258 revolve around? poet's fears mother Theme of old age All of these d
What question arises from How to strike a balance
the complexity of the how to take care of between duties and
259 situation in the poem? what to do in old age one‘s skin how to drive responsibilities d
 ANSWER
S.NO QUESTION OPTION-A OPTION-B OPTION-C OPTION-D
KEY
How is the imagery of mother is like ash Mother's health-
'young trees and merry mother is old in while the trees are hopelessness and trees
children‘ a contrast to the comparison to the trees green and children like spring and autumn and merry children-
260 mother? and children are happy season youthfulness and hope d
What does the expression
smile, smile and smile poet was going home poet's desperate efforts
261 signify? and was elated poet was happy poet was hopeless to hide her fears d
What was the expression of
the poet's face while
262 parting from her mother? satirical funny sad smiling d
Whose house the poet was
263 leaving? her friend's house in-law's house her husband's house her parents' house d
What was the poet's Parting from her Parting from her Parting from her
264 childhood fear? husband friends siblings losing her mother d
What were the words she
used while parting from
265 her mother? See you soon Ba See you soon beeji See you soon mata ji See you soon, amma d
What pangs did she feel
when she looked at her Pangs of
266 mother? Pangs of headache stomachache Pangs of knee pain Pangs of heartache d

SKV VIDHYAASHRAM SENIOR SECONDARY SCHOOL

POEM-2-AN ELEMNTARY CLASSROOM IN A SLUM
ANSWER
S.NO QUESTION OPTION-A OPTION-B OPTION-C OPTION-D
KEY
Who has written the poem
Elementary School
412 Classroom in a Slum? Kipling Wordsworth Kamlanath Stephen Spender d
 ANSWER
S.NO QUESTION OPTION-A OPTION-B OPTION-C OPTION-D
KEY
What theme did the poet themes of social
concentrate on in the injustice and class theme of children
413 poem? inequalities. and their happiness theme of insecurities none a
What does the poet portray playfulness of the the plight of young
414 in the poem? young minds children questions of children children in the slums d
What does the poet rich (haves) and poor
415 compare in the poem? the young and old generation gaps old age and childhood children (have nots) d
What kind of life do the
children living in slums full of care and Hopeless and full of
416 have? full of love warmth struggle all of these c
What does the poet
compare the colour of
417 walls with? rotten fruits stale chapatis rotten vegetables sour cream d
What are the poetic devices metaphor and
418 used in the poem? alliteration and simile imagery synecdoche, and irony All of these d
What do the words ―Their
future is painted with fog‖
419 convey? no love and care no warmth no hard work no hope of improvement d
What do the faces of
children in the slum areas sadness and lack of
420 reflect? happiness their aspirations their energy enthusiasm d
What is ironical about the completely opposite
wall hangings and to the needs of the
donations in the set up in very clean children in the set up in happy
421 classroom? environment classroom environment set up in gloomy set up b
What does paper-seeming was as thin as a sheet was white in colour
422 boy mean? had a paper in his hand of paper like a sheet of paper All of these b
What is the Tree Room in A room on a tree A room on a tree where A room on a tree where
423 the poem? A tree - shaped room where squirrels play rats play pigeons play b
 ANSWER
S.NO QUESTION OPTION-A OPTION-B OPTION-C OPTION-D
KEY
relevance of the map confinement to the
What do Catacombs hanging on the wall of slums, the maps importance of the
424 signify? the classroom being irrelevant school death b
they show vastness
which is opposite to the
world and needs of the
Why are the pictures and they are fake and show a they are old and have children in the
425 maps meaningless? false thing faded away classroom All of these c
by bridging gaps of
How can powerful people by fighting with the by fighting with the inequalities and
426 help the poor children? government powerful injustice by fighting with the rich c
What does the poem A classroom in a slum beauty of the
427 describe? area social setup of India different mindsets surroundings a
What does the poet wish
for the children of the He wishes them to be He wishes a good he wants them to enjoy
428 slums? happy and healthy change for them the bounties of nature All of these d
―Far far from gusty waves
these children‘s faces. Like
rootless weeds, the hair
torn round their pallor‖:
what do these words poor state of the poor plight of poor plight of the slum
429 express? classroom children's homes poor plight of teachers children d
Why is the head of the tall by the burden of by the burden of her
430 girl 'weighed down'? by the burden of studies work world All of these c
What is the meaning of
'The paper seeming boy, powerful people and weak and malnutritioned
431 with rat eyes'? rich people rich children their influence boy d
 ANSWER
S.NO QUESTION OPTION-A OPTION-B OPTION-C OPTION-D
KEY
What kind of look do the
faces and hair of the pale faces, scattered and
432 children give? rich and beautiful faces bright, neat faces healthy appearances undone hair d
dream of better times
His eyes live in a dream- with games and open
433 what is the dream? watching a movie going abroad eating ice cream spaces d
Who was sitting at the
434 back of the dim class? a girl an old man a teacher a young boy d
a short, thin boy, has
inherited stunted thin boy with rat's eyes,
Who is the unlucky heir a fat boy, has inherited growth from his an intelligent boy, has has inherited a deformed
435 and what has he inherited? obesity from his mother family inherited intelligence body from his father d
What is the stunted boy a happy song from his a religious song in a a sad song from the
436 reciting? seat group front of the class a lesson from his desk d

What does the color of the poor condition of the

437 classroom walls point out? happy and poor state happy and rich state slum none of these c

What does the expression the poor can not maps are open to all,
438 'Open handed map " show? power of the poor access the world the poor are powerless they reveal everything d
‗Awarding the world its
world' what do these words the world belong to the the world belongs to the
439 express? the world is ours the world is yours poor rich d
because of no access to
In what sense are the slum hope and openness of the
440 children different? their IQ their wisdom their dresses world d
What kind of future do the
441 slum children have? very hopeful bright clear like water hopeless and uncertain d
 ANSWER
S.NO QUESTION OPTION-A OPTION-B OPTION-C OPTION-D
KEY
What attracts the slum All beautiful things like
442 children? The animals The movies icecream ship, Sun d
What do the words 'From Dark and uncertain
fog to endless night ' future of slum children
443 mean? bright light outside bright future hopelessness from birth to death d
Mention any two images
used to explain the plight foggy slums and bottle
444 of the slum children. open handed map from his desk belled,flowery bits on stones d
What blots the maps of the
445 slum children? garbage blockage stones in the streets Dirty slums d
What does the poet show
through expressions 'so
blot their maps with slums the slums spell doom for
446 as big as doom'? his clot the street enjoy the maps big maps the poor d
What do the 'governor',
inspector, visitor‘ in the Powerful and influential
447 poem depict? higher officials Government officials Political people people d
What have the windows have shut the children
done to the children's lives inside and blocked their
448 in the poem? shut the doors blocked the passage clocked the Sunlight growth d
What other freedom the freedom of
poet wants the slum freedom to spend knowledge,wisdom and
449 children to enjoy? Freedom of roaming money freedom to eat expression d
What does the expression barriers of dirty
'Break O break open' barriers of garbage environment must be
450 suggest? barriers on the road heap broken None c
to send the children out to send the children to send the children to to send the children to a
451 What does the poet want? of the slums to America open fields beach a
 ANSWER
S.NO QUESTION OPTION-A OPTION-B OPTION-C OPTION-D
KEY
Identify the literary device
452 in ‗slums as big as doom‘. simile metaphor alliteration personification a
Identify the literary device
in ‗whose language is the
453 sun‘. simile metaphor alliteration personification b
‗Break O break‘. What
454 should they break? the donations all bathers the slums the schools b
The imprisoned minds and
lives of the slum children
can be released from their
bondage if they are given
an experience of the outer
455 world. never soon eventually magically d
Identify the literary device
456 in ‗spectacles of steel‘. simile metaphor alliteration personification b
The last stanza is unlike
457 the rest of the poem. long short optimistic pessimistic c
Where do their lives ‗slyly
458 turn‘? in their cramped holes towards the sun towards the school towards the windows a
The map is a bad example
459 as it makes one aware of the beautiful world cleaner lanes the political structure the civil design a
Identify the literary device
in ‗future‘s painted with a
460 fog‘. simile metaphor alliteration personification b
Shakespeare is wicked
461 because he the children. educates tempts loves hates b
What does the map world of the rich and world of the slum world the poet wants for
462 represent? powerful world of the poor school children the slum children a
 ANSWER
S.NO QUESTION OPTION-A OPTION-B OPTION-C OPTION-D
KEY
What is the stunted boy
463 reciting? the lesson from his desk Shakespeare‘s poetry leaves of nature his composition a

SKV VIDHYAASHRAM SENIOR SECONDARY SCHOOL

POEM-3-KEPING QUIET
ANSWER
S.NO QUESTION OPTION-A OPTION-B OPTION-C OPTION-D
KEY
What does the title of the
307 poem suggest? Inactivity noise unhappiness Maintenance of silence d
the necessity to
introspect ,
understand and have
What does the poem speak the necessity to be feelings of the necessity to work
308 about? happy brotherhood quietly none b
What does counting upto
12 signify and how will it it will help to create
309 help? hours of the day months of a year peace and harmony all d
310 What is poet's pen name? Neruda Pable Pablo Pablo Neruda d
What does the style of the
poem symbolise, that the
311 poet used to write with? desires happiness hope desire and hope d
What is the original
312 language of the poem ? English French Pali Spanish d
introspection and
retrospection to be more
What is the essence or peaceful and be in
313 message of the poem ? harmony to prosper to be happier to reach out more people a
 ANSWER
S.NO QUESTION OPTION-A OPTION-B OPTION-C OPTION-D
KEY
What does the poet feel is interaction with the
314 needed to be at peace? meeting with people talking with people people Soul searching d
According to the poet what
315 creates barriers? interactions reactions fighting languages d
because it creates
barriers or obstacles in
the form of
Why does the poet ask it makes things misunderstanding
316 people not to speak? because it creates noise he doesn't like noise unpleasant amongst people d
What is the rhyming
317 scheme used in the poem? enclosed rhyme Monorhyme sonnet Free verse d
How is keeping quiet
related to life and can it helps to think and helps to scratch one's helps to develop new
318 change attitude? search soul soul thinking process All these d
How will keeping quiet by creating peace and
319 protect our environment? brotherhood feelings no noise will be there people will not fight none a
What is destroying the speaking without
320 environment? unthoughtful actions violent actions thinking All d
What does number 12 hours of the day and
321 represent? months of a year earth clock cricket players a
To be peaceful ,
What does the poem thoughtful and have
322 Keeping Quiet teach us? how to maintain silence not to make noise speaking creates noise feelings of brotherhood d
Not move our arms' what
does this expression refer sitting still without any
323 to? sit quietly stand quietly to be inactive movement d
helps us to be
Why is silence treated as a it helps to search our helps us to analyze thoughtful and find our
324 big issue? soul our actions true self All these d
 ANSWER
S.NO QUESTION OPTION-A OPTION-B OPTION-C OPTION-D
KEY
What should not be
confused with total
325 inactivity or death? no movement a statue talking people Stillness and silence d
What can be a cure or an
326 antidote to violent actions? speaking practice wise words polished language Practice of silence d
What is the sadness in the violence because of
poem that the poet speaks unthoughtfulness of the unnecessary
327 about ? people movements speaking aloud fighting a
perseverence and new
What does the earth beginning from
328 symbolise? seemingly stillness stillness greenery prosperity a
What is always alive even
when everything seems to Earth and nature are
329 be dead or still? mountains rivers Sun always alive d
in the hope of becoming
Why does the poet request more thoughtful and
330 people to keep quiet? to maintain silence to avoid noise to be friendly peaceful d
What does the poet want
people to do for one to be silent and
331 second? to sing to close eyes to stand quietly motionless d
How can the moments of to relax and be more
332 no activity help people? they will be healthy they will be happy they will work easily thoughtful d
What will happen if there
are no engines and no it will create a perfect,
333 crowd? noise will be lessened no crowd on roads no traffic rush happy moment d
Why is the moment of because of the beautiful because of the because of large because of perfect peace
334 silence called Exotic? scenery around gathering gathering and harmony d
What would everyone feel
335 at that exotic moment? happy content dancing strange blissful oneness d
 ANSWER
S.NO QUESTION OPTION-A OPTION-B OPTION-C OPTION-D
KEY
How long is the poet
expecting everyone to stay for 1 second till we
336 still? for 10 minutes for 12 minutes for 15 minutes count 12 d
Why is the poet asking
everyone not to speak any to avoid conflicts and
337 language? to avoid noise to avoid loud voices to avoid people misunderstandings d
What is the poet expecting to go deeper into the to think and stop
338 from fishermen? to find more fish sea harming the fish none c
While gathering salt, what
will happen to the man if he will think of the harm
he keep silent for a he will look at the the salt is doing to his
339 moment? he will stop dropping it ground he will walk carefully hands d
What does hurt hand refer Growing needs of the growing greed of growing insensitivity of
340 to ? man man unfulfilled desires man to pain d
man will stop hurting
How will silence benefit man will know nature and both will heal
341 the man and nature? both will be friends nature better man will be healthy themselves d
Which images in the poem
show that the poet wars leaving behind
condemns or hate fishemen not harming no survivors to poet's refusal to deal
342 violence? whales celebrate with death All these d
What symbol from nature
the poet uses to prove that
keeping quiet is not total
343 inactivity? Sun Soil earth Nature and earth d
What are the different
kinds of wars mentioned in
344 the poem? War against humanity War against nature War with gases and fire All these d
 ANSWER
S.NO QUESTION OPTION-A OPTION-B OPTION-C OPTION-D
KEY
What can human beings
345 learn from nature? beauty keeping quiet to be happy working with silence d
How does the poet a continuous evolution
346 perceive life? as stillness as silence a noisy place of nature d

The poet uses

conversational style and
personal pronouns as he wants to be intimate he tries to read out to he wants to establish third person is
347 ‗you‘, ‗we‘ and `I‘ because with mankind the readers contact easily ineffective b
and later proves to be life is what it is I want no truck with and you keep quiet and I
348 The last line of the poem is alive about death will go d
Man needs to learn a
349 lesson from moon stars earth sun c

According to the poet wars

350 that are fought have no soldiers weapons fighter planes survivors d
‗Cold sea‘ is a poetic
351 device personification transferred epithet metaphor alliteration b
Without rush, without no hurry to go to the
352 engines‘ refers to no noise office no travelling no holidaying a
The poet wants the entire
353 humanity to keep talking keep running keep laughing keep still d
The poet advocates the
354 balance of nature to be maintained destroyed temporarily disturbed ignored a
What does man threaten
355 himself with? death birth robbery suicide a
Where would they be
356 walking? in the park along the river in the shade on the road c
 ANSWER
S.NO QUESTION OPTION-A OPTION-B OPTION-C OPTION-D
KEY
The types of wars the poet green wars, wars with
357 talks about are gas, wars with fire verbal wars technological warfare nuclear wars a
What kind of a moment
would it be when everyone
358 is silent terrible painful exotic unforgettable c

SKV VIDHYAASHRAM SENIOR SECONDARY SCHOOL

POEM-4-A THING OF BEAUTY
ANSWER
S.NO QUESTION OPTION-A OPTION-B OPTION-C OPTION-D
KEY
What kind of a poet was
267 John Keats? a Realistic Religious Medieval A romantic d
Who is the poet of A thing
268 Of Beauty? John Donne William Blakes William Wordsworth John Keats d
From where has this poem From Keats work-
A Thing Of Beauty been Endymion- A poetic
269 taken? Romance Ode to a Nightingale Ode on Melancholy Ode on Indolenc a
270 Who is Endymion? a worker an office boy a young child a young shepherd d
Where did the poet and
271 Endymion live? in a hut on a hill in a tree house on mount Latmos d
Whom did the enchanted Cynthia-the moon
272 youth resolve to seek? God nature mentor goddess d
What are the things of
beauty mentioned in the Young trees and
273 poem? Sun and Moon streams flowers All these d
Which things cause lack of virtues and
274 suffering to human beings? inhuman acts withering flowers blooming flowers flowing streams a
 ANSWER
S.NO QUESTION OPTION-A OPTION-B OPTION-C OPTION-D
KEY
What does Endymion do to
275 seek goddess? dances sings songs reads scriptures wanders through forests d
because its beauty never
How is a thing of beauty ends and leaves a lasting
276 joy forever? because it is beautiful because it is nature because it is joyful impact d
What is the message of the beauty lifts spirits
277 poem? Beauty never fades high beauty is a joy forever All these d
What does a thing of removes pain and
278 beauty do for us? gives hope gives happiness suffering All these d
What is the endless A thing of beauty is
fountain and what is its endless fountain and it
279 effect? Moving streams The Sunlight gives happiness None c
What does a thing of it will keep giving
beauty is a joy forever happiness for a longer
280 mean? joy is in memory joy is precious joy is not sold time d
What is Beauty in Keats'
281 opinion? a suffering a cause of suffering a cause of pain a joy forever d
What is the concept of beauty is cause of all a quality which always
282 beauty? Beauty is a pleasure happiness beauty is nothing gives happiness d
Do we experience things of
beauty only for a short time yes beauty is a no, they make a lasting
283 ? yes they are short lived temporary thing it never lasts forever impression of happiness d
Who said that a thing of
284 beauty is a joy forever? John Millet Christopher a young shepherd John Keats d
How does a thing of beauty
provide shelter and By giving a sense of joy by removing pain
285 comfort? and happiness and suffering like a bower All these d
Whose loveliness will keep
286 on increasing? of rivers of mountains of nature of all beautiful things d
 ANSWER
S.NO QUESTION OPTION-A OPTION-B OPTION-C OPTION-D
KEY
it will keep giving
Write the phrase which it will never pass into happiness for a longer
287 means 'it is immortal' it will never fade nothingness it will never cease time b
288 What is a bower? a river a stream a big tree a shady tree d
Why do we need sweet
dreams , health and quiet to have a healthy mind to have peace and
289 breathing? and body to have sound sleep happiness All these d
great respectworthy
What are 'mighty dead' in ancestors specially dead
290 the poem? dead people dead relatives dead plants emperors d
What is the endless
fountain of immortal
291 drink? rivers flowing streams Sunlight All the things of beauty d
292 What does 'brink' mean? roof top a rocky space mountain top an edge at the top d

293 What does immortal mean? ever flowing evergreen forever beautiful never ending or endless d
What image does the poet
use to convey that beauty is Some shape of
294 everlasting? a bower quiet for us beauty endless fountain of joy sprouting a shady boon c
What is the effect of immense joy and beauty never moves
295 immortal drink? no one is thirsty everyone is happy happiness away c
Pick the words from the
poem which mean: stories, green world and clear
296 magnificence. tales and grandeur old,and young rills sweet dreams and health a
What removes pall from
297 our life? dark spirits Trees old, and young all the unhealthy things Nature's beauty d
What is the meaning of
298 gloomy? all the unhealthy things dark spirits dull and depressive none c
 ANSWER
S.NO QUESTION OPTION-A OPTION-B OPTION-C OPTION-D
KEY

How does beauty help us sprouting a shady

299 when we are grief stricken? By giving a ray of hope boon by giving daffodils none a
What does poet mean by beautiful object that
300 Some shape of beauty? beauty has no shape beauty is abstract gives happiness All c
Which figure of speech is
used in the words-Some
301 shape of beauty? Alliteration simile metaphor all c
Why are our spirits because of spirits because of sadness and
302 referred as dark? because of dark clouds around because of shady trees disappointments d

303 What does morrow mean? morning time present time noon time the next day d
Why do we need a flowery to have strength and joy
304 band? to look beautiful to smile to be joyful inspite of all sadness d
selfcentred tendency and
inacility to rise above
305 What is inhuman in life? human inside a river human inside caves human on trees shallow circles d
What circumstances make chilly cold waves on moisture of flowing
306 man unhappy? mountains rivers crowded places tendency of hopelessness d

SKV VIDHYAASHRAM SENIOR SECONDARY SCHOOL

POEM-5-AUNT JENNIFER'S TIGERS
ANSWER
S.NO QUESTION OPTION-A OPTION-B OPTION-C OPTION-D
KEY
Who is the poet of the
poem Aunt Jennifer‘s
359 Tigers? Adrienne Rich Jonathan Aaron J. H. M. Abbott Mark Abley a
 ANSWER
S.NO QUESTION OPTION-A OPTION-B OPTION-C OPTION-D
KEY
She is widely known for
her involvement in
contemporary women‘s
What is the poet known movement as a poet and
360 for? theorist for her beauty for her philosophy for her poems a
How many volumes of
361 poetry has she published? 18 29 39 19 d
What does echo through A strong resistance to her passion of essay her wish to publish her
362 her work? racism and militarism her love for poetry writing work a
What issue does the poem constraints of
Aunt Jennifer's Tigers married life a woman constraints of women
363 address? constraints of women experiences as a poet None b

What do you understand by The dominant and

the words ‗denizens‘ and highly arrogant attitude
364 ‗chivalric‘ in the poem? of the wild animal-tiger tiger is a wild animal tiger is hungry beauty of the tiger a
Which words depict the
dominant and arrogant
attitude of the wild animal
365 in the poem ? dominant arrogant adorable denizens and chivalric d
What do aunt Jennifer's the lost freedom and
fluttering hands through fear of Jennifer's mind
her wool in the second because marital her love for embridery
366 stanza tell us? restraints her old age and knitting her love for tigers a
because of the heavy
Why is she finding the because of fluttering because of trembling weight of her marriage
367 needle so hard to pull? fingers hands because of her fears ring d
 ANSWER
S.NO QUESTION OPTION-A OPTION-B OPTION-C OPTION-D
KEY
What does the image
'massive weight of the wedding bond of hard fatty structure of
368 wedding band ' mean? married life uncle fatty body of aunty heavy body of tiger a
Of what or of whom is aunt
Jennifer terrified of in the
369 3rd stanza? of tigers of her death of her old age of her dominant husband d
What are the ordeals aunt heavy responsibilities of
370 Jennifer is surrounded by? wild animals old people a heavy crowd married life d

responsibilities that
What is the significance of formed circles like a ring
371 the word ringed? responsibilities heavy duties fatty people eurrounding her finger d
What is the meaning of the her wedding ring circles of responsibility
372 word 'ringed'? circles of a ring around finger of married life none c
What is the purpose of
creating animals which are to show her strength and
completely a contrast to ability of not giving up
373 aunt's character? in the face of difficulties her courage her fears and strengths none a
simultaneous nature of
fears and strengths of
What is the poet suggesting aunt. Though she has
through the different nature all are different and fears, yet she is not
374 of characters in the poem? Diversity in nature unique defeated by them all c
Tell and interpret the
meaning of 'Denizen of
375 aworld of green'. forest haters forest lovers forest dwellers all c
What is the attitude of the
poet or speaker towards full of appreciation and
376 aunt Jennifer? critic very harsh and rude indifferent sympathy d
 ANSWER
S.NO QUESTION OPTION-A OPTION-B OPTION-C OPTION-D
KEY
no, more than
Does Aunt Jennifer need sympathy she deserves
377 sympathy? yes no praise none c
marriage between uncle
378 What is the wedding band? ring ring ceremony and aunt All c
loss of freedom and
What did marriage bring burden as if she has put
379 for Jennifer? unhappiness loss of freedom on a heavy band a heavy mountain c
What is still fresh in early days of the old unhappy
380 Jennifer's mind? happy moments marriage uncle's attitude memories d
What did ordeals or tough they made her a hard they crushed her artistic
381 times do in Jennifer's life? hearted person she developed hatred she became weak personality d
Where do aunt's tigers
382 belong? to a cage zoo mountains world of green forests d
What is the poet conveying
through aunt Jennifer's female existence and
383 tiger? wild life courageous tigers tigers and their courage their fear of men d
tensed ,troubled
Physical condition of physical and mental
384 Interpret terrified hands. aunt mental stae of aunt state of aunt Jennifer fears of aunt c
What is the tone of the
385 poem towards the end? happy moments resolving hopeful sad and tensed d
tigers are courageous
How are aunt Jennifer's aunt lives in a city and aunt is old and tigers and carefree and aunt is
386 tigers different from her? tigers in forests are young terrified none c
What is aunt Jennifer burden of household heavy responsibilities of
387 loaded with? weight of rings weight of tigers work married life d
What lies heavily on aunt
388 Jennifer's hand? needles embrideries work pressure wedding ring d
 ANSWER
S.NO QUESTION OPTION-A OPTION-B OPTION-C OPTION-D
KEY
unnecessary pressures
of her dominant
husband and
What does wedding ring responsibilities of
389 represent? beauty expenses married life none c
How do the Prancing tigers
390 look? just like diamond just like Topaz just like coal just like stone b
Why did aunt embroider to express her supressed to express her to express her fighting
391 tigers on the panel? feelings strenghths spirit of a warrior All these d
Why are tigers given the because she created
name Aunt Jennifer's them as an expression to because she brought because she bought because she nurtured
392 tigers? her inner feelings them them them a
How are tigers described in
393 the poem? as ferocious fearless chivalric All these d

What is the meaning of the commanding and

394 word 'Chivalric'? ferocious fearless demanding high respect None c
What would Jennifer's
terrified hands tell after her her constrained her strength to find her
395 death? story of her life married life ways and beat the fears All these d
What is presented through
396 uncle's character? Male strength Man is powerful man is like tigers male chauvinism d
Where are the tigers
397 sleeping? on the trees on the mountain top in the cage in the caves d
What is Aunt doing in the
398 poem? Cooking Embroidery Reading Sleeping b
The attitude of the poet
towards Aunt Jennifer is
399 that of hatred love sympathy casual c
 ANSWER
S.NO QUESTION OPTION-A OPTION-B OPTION-C OPTION-D
KEY
400 Massive‘ means high huge minimum small b
‗Proud‘ and ‗unafraid‘.
These two adjectives have the males in the
401 been used for the uncle society the tigers on the forest the tigers on the panel d
hardships and
difficulties that Aunt
She was mastered by is a Jennifer faced during her teacher taught her
402 reference made to the her lifetime she was a slave he had a rude master nothing a
too many rings on
403 Still ringed‘ means oppression will continue her fingers ring of the bell quiet and peaceful a
Aunt Jennifer‘s family
404 consists of she and her husband she and her tigers she and her kids she and her servants a
The word ‗chivalric‘ in the
405 context means timid arrogant honourable and brave malicious c
The word ‗prance‘ in the
406 poem means to jump ahead to dance to eat to prowl a
The massive weight of the huge gold wedding
Uncle‘s wedding band is a suppression at the band makes her
407 subtle reference to male oppression hands of her husband the heavy gold ring uncomfortable b
What is Aunt Jennifer she is embroidering a she is making a ball of
408 doing with wool? wall panel she is knitting a scarf wool she is knitting a cap a
The rhyme scheme in
409 stanza one is aabb abab ABC abbe a
Jennifer‘s family
410 They pace‘ is referred to the human beings members the tigers the lions c
Denizens‘ of a world of residents of green
411 green means residents of forests buildings live in green cages live in green grasslands a
 ANSWER
S.NO QUESTION OPTION-A OPTION-B OPTION-C OPTION-D
KEY

SKV VIDHYAASHRAM SENIOR SECONDARY SCHOOL

FICTION-1- THE THIRD LEVEL
ANSWER
S.NO QUESTION OPTION-A OPTION-B OPTION-C OPTION-D
KEY
Who is the author of The
464 Third Level? George Orwell Agatha Christie James Joyce Jack Finney d
Walter Braden Jack
465 What was Jack's full name? Finey Stephen Jone Jack Ray Douglas Bradbury None a
Why was the author
466 renamed? to change his name Priest's suggestion to honor his mother as an honor to his father c
What are the author's best English and Science Science and history Science fiction and Science fiction and
467 known works? fiction fiction nature thrillers d
What is the meaning of a pleasant wish that a pleasant wish that a pleasant wish that
'Waking dream wish makes one forget the takes one to the A pleasant wish which makes one forget the
468 fulfillment"? present future inspires to work present a
human tendency of
escapism because of the
What is the theme of the harsh realities of the a dialogue between a
469 lesson? present time travelling theory of escapism patient and a psychiatrist a
in an aggressive
470 How does the story begin? in a jovial manner manner on a happy note in a serious manner d
a human tendency to
escape from the harsh
What does the Third level realities of the present to A third way on A third gate on Grand
471 signify? past happy times Grand Central station Central Station None a
 ANSWER
S.NO QUESTION OPTION-A OPTION-B OPTION-C OPTION-D
KEY
Charles finding of a
What is 'Waking dream Third level at Grand
wish fulfillment" according Central Stationand
to the psychiatrist in the realization of his wish to Charles escapism from
472 lesson? visit Galesberg Illinois Charles escapism realities None a
a woman with bright A woman at The Third
473 Who was Charles' wife? a woman top Level Louisa d
What is Sam's letter to a blend of reality with
474 Charles represent? A blend an acceptance to visit a proof of his fantasy fantasy d
What is Sam's letter Charles' tendency of
testimony to in the lesson Sam accompanying escapism from the
475 proving? his acceptance to travel his refusal to travel Charles realities d
In what way do we try to
overcome the insecurities by engaging ourselves in by talking to friends
476 of the present harsh times practical activities and family reading good books All these d
What is the significance of Authors' parents Author's childhood representing a peaceful ,
477 1894 in the lesson? it was past were alive time romantic living time d
Who was sam in The Third a psychiatrist and a
478 Level? a doctor a friend friend of Charley None c

To consult the incident to invite him to

Why did Charley visit of Third level incident accompany at To guide him in
479 Sam? at Grand Central Station To invite him Galesberg Galesberg a

Does the Third Level really yes, there were 3 No, there were only
480 exist at Grand Station? Yes levels two levels at the station None c
What unusual thing the
narrator sees at the Grand
481 Central Sation? Trees motorcars Third Level All these c
 ANSWER
S.NO QUESTION OPTION-A OPTION-B OPTION-C OPTION-D
KEY
Why was the narrator as a wish to visit wanted to meet his wanted to take a break As a result of stress and
482 seeing this Third Level? Galesberg friends from office anxiety in his mind d
That it was the result of
What does the Psychiatrist Third level is a beautiful Third level is Third level is well stress and anxiety of his
483 explain to Charlie? place worthseeing maintained mind d
In his fantasy he takes a
How did Charlie reach the subway or a corridor
484 Third Level? faster than a bus in a superfast train in jetways in an escalator a
a third storey on the an imaginary discovery
485 What was the Third Level? a third tier on the station station of the narrator's mind none c
flickering gas lights and men wearing a tan
What did Charley see at people with funny gabardine suit and a
486 the Third Level? mustaches brass spittoons straw All these d

Why was Louisa,Charley's Knowing the incident of

487 wife worried? Third Level for not getting tickets tickets were delayed Sam was scaring a
Why does Charley want to to escape from the to see the beautiful
488 visit Galesberg? troublesome world to enjoy landscape to meet his old friends a
Why do you think the Because it existed only
Third Level was an escape Because it existed at the Because Sam knew Because he shared it in his fantasy and not in
489 for Charley? third storey about it with Sam reality d
A new stamp gets the A gift wrapped in a
490 What is First Day Cover? Postmark and date A gift A gift wrapper beautiful wrapper a
For Charle's tendency to
How does the story treat harsh realities with
interweave fantasy and his imaginary Third It presents imagination happens on
491 reality? Level imagination Central Station None a
 ANSWER
S.NO QUESTION OPTION-A OPTION-B OPTION-C OPTION-D
KEY
What specific difference
did Charley notice at the Everything was old
Third Level of Central styled and smaller in
492 Station? Everything was weird size everything was too big everything was shining b

Where was Charley ducked into an arched door

493 on Central Station? into a room into an office heading for subway into a store c
What was the strangest The corridor that led him
494 thing at The Third Level? Beards Mustaches dresses into the past. d
from a subway faster
Where was Charley often than bus at The Central
495 lost? from a train from the footpath from an escalator Station d
What did Charley find in
496 his stamp collection? old addresses hair styles old letters First day cover d
What happens when new tree keeps spreading its
Charley enters the Grand He finds a huge tree like staircases,corridors roots throwing rooms
497 Central Station? Station and tunnels and windows All of these d
What convinced Charly
that he had reached the
Third Level Grand Central A different world of gas
Station and not the second lights and brass beards and newspaper with a date
498 level? spittoons mustaches of 1894 June11, 1894 All of these d
Who had sent that 'First Sam a psychiatrist in
499 Day cover and when? Sam's father Sam's uncle Sam's friend 1894 d
Whose signatures were
500 there on the letter? Charle's teacher Charle's friend Sam None c
 ANSWER
S.NO QUESTION OPTION-A OPTION-B OPTION-C OPTION-D
KEY

Third level do exist and

Charle was advised to
that Sam is joining keep looking at this
501 What did the letter state? That everything is okay them worthseeing place None c
What was Sam invited for
502 according to the letter? for a party for a tea party for a bachelor's party for a lemonade party d

What kind of appearances funny and clerk refused

people had at Third level to accept money
and why did the clerk because it was currency weird and notes were weird and notes were weird and notes were
503 refuse to accept money? of modern times big torn wet a
What was Sam invited for
504 according to the letter? for a party for a tea party for a bachelor‘s party for a lemonade party d
Whose signatures were
505 there on the letter? Charle‘s teacher Charle‘s friend Sam None c
What convinced Charly
that he had reached the
Third Level Grand Central A different world of gas
Station and not the second lights and brass beards and newspaper with a date
506 level? spittoons mustaches of 1894 June 11, 1894 All of these d
What did Charley find in
507 his stamp collection? old addresses hair styles old letters First day cover d
What was the strangest The corridor that led him
508 thing at The Third Level? Beards Mustaches dresses into the past. d
What specific difference
did Charley notice at the Everything was old
Third Level of Central styled and smaller in
509 Station? Everything was weird size everything was too big everything was shining b
 ANSWER
S.NO QUESTION OPTION-A OPTION-B OPTION-C OPTION-D
KEY
A new stamp gets the A gift wrapped in a
510 What is First Day Cover? Postmark and date A gift A gift wrapper beautiful wrapper a
Why does Charley want to to escape from the to see the beautiful
511 visit Galesberg? troublesome world to enjoy landscape to meet his old friends a
flickering gas lights and men wearing a tan
What did Charley see at people with funny gabardine suit and a
512 the Third Level? mustaches brass spittoons straw All these a

Does the Third Level really yes, there were 3 No, there were only
513 exist at Grand Station? Yes levels two levels at the station None c
In what way do we try to
overcome the insecurities by engaging ourselves in by talking to friends
514 of the present harsh times practical activities and family reading good books All these d

SKV VIDHYAASHRAM SENIOR SECONDARY SCHOOL

FICTION-2- THE ENEMY
ANSWER
S.NO QUESTION OPTION-A OPTION-B OPTION-C OPTION-D
KEY
Who is the author of the lesson
615 The Enemy? Pearl S. Buck Dickens D.H.Lawrence None a
Why did Dr Sadao treat the
soldier when he was from It was against his as a doctor he could not let
616 enemy's nationality? He was a doctor professional ethics anyone die All d
617 Who was Dr. Sadao? An Iranian Doctor An American doctor A Japanese doctor None c

618 How did Hana help Dr. Sadao? By assisting him by giving him money by giving him tools by working as a nurse d
Why did the General not pass General was not in good
orders to arrest Dr. Sadao for health and needed his
619 giving space to a whiteman? because he trusted him because he needed him services None c
 ANSWER
S.NO QUESTION OPTION-A OPTION-B OPTION-C OPTION-D
KEY
because of his inability to
Why did Dr become irritatable leave the white man to help because of General's
620 and impatient with his patients? his distressed wife because of many patients pressure All these a
Why did Dr.'s wife feel
621 distressed? seeing many patients Seeing General's reaction Seeing the orders Seeing Whiteman's blood d
to stop any disturbance that
Why did the surgeon speak could lead to harm the
622 sharply to his wife? to get things he needed to get her help wounded man. None c

She held her mouth with her

What was Hana's reaction over hands and vomited outside
623 her husband's words? the operation room she shouted she cried she stopped helping him a
because her servants refused
Why did Hana wash the because her servants ran to help an American enemy
624 wounded man herself? Because of her servants away soldier none c
Why did the servants refuse to because he was an American
625 help ? out of fears because of suoerstitions Soldier All these d
How did Dr. ensure that the
American Soldier had left by seeing no signal of
626 safely? by escorting him flashlight by giving him a call none b
Why did Sadao marry a Japanese he didn't like any other because he didn't want to
627 girl only? because he liked Japanese nationality Because of his father's fear upset his father d
What kind of person was Sadao's A true patriot and traditional
628 father ? a serious a jollygood man very strict person d
Why did the messenger come to to inform about the
629 the doctor? to meet him for checkup General's pain All these c

Seeing the messenger, what was she thought he has come

630 Hana's reaction? She got frightened to arrest her husband General's man All these d
What kind of person The
631 General was? a kind hearted a wise man a selfish man none c
Why did General spare the
632 White American soldier? to spare his own life he himself was in pain needed Dr Sadao's help All these d
 ANSWER
S.NO QUESTION OPTION-A OPTION-B OPTION-C OPTION-D
KEY

How did Dr get rid of the by giving him flaslight to by asking him to row to the
633 American Soldier? by giving him instructions use in times of distress island All these d
he was supposed to offer his
Why was Dr. Sadao not sent to services to the General who
634 the battlefield? because he had no interest he didn't love his country was in pain All these c

Why did Dr. Give his flashlight to show him the way in so that he could send him
635 to the enemy soldier? to help him the dark signal in case of any distress All these c

What was General's plan for will get him assassinated by

636 American soldier? he wanted him to reach safely will inform his country some private assassins none c
Because he was an
Why did the servants leave Dr.'s American Soldier and they
637 House? Because he was wounded because he was dirty didn't like him All c
Where did Dr find American
638 soldier? in the park in the battlefield outside his house none c
Why did Dr. help an enemy because he was an ethical
639 soldier? and sincere doctor because he was his friend because he knew him none a
What conflicting ideas disturb
Dr.'s mind after he brought duty of a doctor and loyalty his wife's health and
640 American soldier? towards nation general's health patient's health and servants servants' behavior a
By saving soldier's life as a
How did Dr emerge successfully by throwing the patients out by sending his servants by succumbing before the sincere doctorand helping him
641 out of all the conflicts? of his house out of the house general to escape d
What kind of person Dr Sadao a compassionate human Sincere and responsible
642 was? an excellent doctor being citizen All these d
What idea do you form of Dr a compassionate human Sincere and responsible
643 after reading the lesson? an excellent doctor being citizen All these d

What were the dominant traits of expertise in his profession

644 Dr.'s personality? and compassion as a human obstinate doesn't like to obey anyone rude a

Why did Dr. Sadao go to to study surgery and medicine

645 America? to meet the soldiers to meet his friends to travel which was his father's wish d
 ANSWER
S.NO QUESTION OPTION-A OPTION-B OPTION-C OPTION-D
KEY

646 What did Dr give to the soldier? his boat food to eat flashlight to use in distress All these d
What does this chapter revolve war between Israel and war between Malasia and war between Japan and
647 around? war America America America d
What does the narrator speak
about in the beginning of the Dr. Sadao‘s childhood and
648 chapter? the war the General his father. the servants and Dr 's wife c
at professor Harley's house in
649 Where did Dr. meet Hana? in Japan in his neighbour in the battlefield America d
Why did Dr feel alone at the for not bringing his wife with for not listening to for saving an American
650 beach? him General soldier's life none c
At what age Dr. Sadao went to
651 America? 22 32 12 42 a
At what age he came back to
652 Japan? 20 40 50 30 d
How many children Dr. Sadao
653 has? 4 5 3 2 d
his first landlady, who was
full of prejudice, yet saved
What does Dr. Sadao remember five American faces which which had a lion‘s share his life when he was
654 towards the end of the story? had a lion‘s share in his in his life suffering from influenza. All these d
The American landlady had once she nursed him through she gave him food for a
655 helped Sadao when influenza month she had mended his clothes had not taken rent for a month a
when he got an award when his wife appreciated
656 Sadao got his reward when the prisoner could escape from the government when his servants returned him a
Sadao made the prisoner dress
657 up in Korean clothes Chinese clothes Indian clothes Japanese clothes d

The young prisoner was asked to

658 flash the light if food ran out twice thrice once not at all a
When the assassins did not
659 come, Sadao decided to kill the prisoner himself help him to escape hand him over to the police send him to America b
 ANSWER
S.NO QUESTION OPTION-A OPTION-B OPTION-C OPTION-D
KEY

The General only wanted Sadao General did not like any General did not want to go
660 to operate upon him because Sadao was very skilled other doctor General was his close friend abroad for surgery a

‘Why are we different from other

661 Japanese?‘, this was said by the servant the General Sadao Hana d
The day Sadao opened the typed out a letter to the
662 soldier‘s stitches, he called the police Chief of Police made him run away tied him up a
All the servants in Sadao‘s felt that he deserved a wanted him to let the soldier
663 household were happy with their master reward were very critical of him die c
The recovering soldier was fed
664 by Sadao Sadao‘s servant Yumi Hana d

SKV VIDHYAASHRAM SENIOR SECONDARY SCHOOL

FICTION-3- SHOULD WIZARD HIT MOMMY?
ANSWER
S.NO QUESTION OPTION-A OPTION-B OPTION-C OPTION-D
KEY
Who is the author of the
515 lesson? John Updike John Donne William Blake John Williams a
Worldview of a little
girl and her curious worldview of
516 What is this story about? questions to her father children world of wizars All these a
How did the wizard help by helping him get rid
517 Roger Skunk? by using magic wand by chanting of foul smell All these d
What did the Wizard ask what did he want to what did he want to what did he want to
518 Roger? have eat smell like? None c
How did Jo want the story wanted to punish
519 of Roger Skunk to end? Roger's mother wanted to hit her wanted to kill her wanted to beat her a
 ANSWER
S.NO QUESTION OPTION-A OPTION-B OPTION-C OPTION-D
KEY
Who hit whom in the Wizard hit Roger's Roger's mom hit the
520 original story? roger hit his mom Roger hit the wizard mom wizard d

because it is because of
Why does Jo call Roger's because she doesn't her action that Roger
521 mom stupid? listen because she is stupid start smelling bad again none c
because of pleasant
Why did Jo think that smell now people were
Roger Skunk was better because she was able to she was able to be able to be friends with
522 with new smell off? bear him now with him now him All these c
What did Roger want to
523 smell like? marigold Sunflower Jasmine Rose d
What kind of end Jo did
524 want for Roger's story? pathetic sad Happy note All these c
How could Roger find so
many new friends to play because of new because of new because of new rosy
525 happily? because of new dishes clothes appearance smell c
Why was Roger's Mom because of new rosy because of new
526 angry with him? smell because of new dress appearance none a
Why does Roger's mother because he is a skunk
not want him to smell like because she is and he should smell
527 a rose? becase she didn't like it allergic to it bad none c
to take him back to
What did Roger's mother awful wizard and get his
528 decide finally? bad smell back to take him with her to get him new smell none a
How does Jo want the
wizard to behave with She wants the wizard to
529 Roger's mother? nicely politely rudely hit her d
 ANSWER
S.NO QUESTION OPTION-A OPTION-B OPTION-C OPTION-D
KEY
Why does Jo want the
Wizard to hit Roger's because she speaks because she behaves because she doesn't let
530 mother? rudely rudely her son have new smell none c
What idea does Jo not Roger's mother have Wizard hit Roger's Roger's mother hit the
531 approve? rosy smell mother wizard None c
Why did Roger Skunk visit to seek his advice to
532 the owl? to be his friend to talk to him to learn the art of flying solve his problem d
What advice did the wise
533 owl give to Roger Skunk? to visit his friends to think deeply to consult his mother to consult the wizard d
What did the wizard
demand to make Roger
534 smell like a rose? 10 pennies 4 pennies 5 pennies 7 pennies d
How many pennies did
535 Roger have to pay? 7 pennies 6 pennies 8 pennies 4 pennies d
Where did the wizard
suggest Roger to get rest
536 three pennies? from a tree from a river from the ocean from a magic well d
What part of the story did when Roger finds when at the wizard's
Jack himself enjoy the when mother hits the pennies from the house, Roger imitates
537 most? wizard mgic well wizard's voice none c
Why did Jack enjoy he relates his own
Roger's imitation of he recalls his childhood experiences
538 wizard's voice? he recalls his past childhood with it none c
Why did Roger visit the to seek advice to get rid
539 wizard? to learn magic to gossip to get rid of his mother of foul smell d
Who advised Roger to go
540 to the wizard? His mother Jo Jack Owl d
 ANSWER
S.NO QUESTION OPTION-A OPTION-B OPTION-C OPTION-D
KEY

Why does Jo want her to give the story a happy

father to tell her story in a to give the story a sad to understand the ending with an adult and
541 different way? ending story better to complete the story mature understanding d
What kind of a person is
Roger's mother is in Jo's
542 opinion? wise pleasing wicked and stupid All these c
Where does Jo prefer to in the school of in her world of dreams
543 live? in the world of friends swings and fantasies none c
as a mature person he
thinks that wizard has
tried to interfere with
Why does Jo's father want nature so it must be because he doesn't he thinks that wizard
544 to punish the wizard? punished like the wizard spoil chidren none a
Why did Roger want to because no one liked none was ready to he smelt very badly and
545 change his smell? him play with him it made people cry All these d
Why did Mother Skunk
want her son to retain his wanted her son to be
546 identity? she is an adult has a mature thinking accepted as it is All these d

Why does Jo's father has a because he has a he doesn't go by facial

547 different opinion from Jo? because Jo is a child mature thought expression All these d
What is different about Jo had a different this was more
548 Roger's story ? opinion from her father interesting it had a wizard none a

Why did Jo have a because she was

different opinion from her unable to see beyond because she wanted a
549 father? because she was a child facial expressions happy ending All these d
 ANSWER
S.NO QUESTION OPTION-A OPTION-B OPTION-C OPTION-D
KEY
Parents are wise and mothers should not
What is the moral of the know what is best for interfere in their chidren are cute and
550 story? them children's affairs mothers are cruel right a

A 4 years old girl who is A 4 years old girl who is

curious to find unknown curious to find unknown
aspects of the stories aspects of the stories
551 Who is Jo? told by her father a girl child a naughty girl told by her fathe d
Why did Jack start finding because it was
storytelling telling ritual a because it became a becoming interesting
552 chore ? routine to make Jo sleep day by day friends were liking it none a
What does a 4 year old
child symbolise in the
553 story? innocence smartness obstinacy none a
What do adult people
554 signify in the story? maturity and experience wise words cruelty indifference a
Clare complains of in __
555 Jack‘s coming down hesitation promptness enthusiasm delay d

556 What is Jo a short form of? John Joe Joanne Jane c

Jo wanted ___in the story skunk mommy to
557 the next day skunk to smell of roses relent wizard to hit mommy animals to love skunk c
What word does Jo
mispronounce as
558 evenshiladee? Evening Eventually Evasive Evacuation b
Mommy skunk was
559 ___with the wizard? angry pleased indifferent civil a
What did mommy skunk
560 call the smell of roses? Pleasant Unusual Heavenly Awful d
 ANSWER
S.NO QUESTION OPTION-A OPTION-B OPTION-C OPTION-D
KEY
How many times did the
wizard ask Roger to turn at
561 the end of the lane? 2 3 4 5 b
What did Jack mistakenly
562 call Roger Skunk? Roger Rabbit Roger fish Roger squirrel Roger monkey c
What did Roger Skunk
563 want to smell like? Roses Lilies Lavender Jasmine a
Jack felt being ___ suited
564 him an old man an Owl a Skunk a kid a

SKV VIDHYAASHRAM SENIOR SECONDARY SCHOOL

FICTION-4- ON THE FACE OF IT
ANSWER
S.NO QUESTION OPTION-A OPTION-B OPTION-C OPTION-D
KEY
Who has written On The
565 Face Of It? Susan Hill William Sydne Salman Rushdie Chetan Bhagat a
an old man and a small
boy meeting in old
566 What is this play featuring? man's garden gossip of old man old man's woes brave acts of a small boy a
567 Who is Mr. Lamb? a young man a middleaged man an old man none c
What were Derry and Mr.
568 Lamb victims of? vision impairment Physical impairment war none b
because he wanted Derry
Why did Mr. Lamb help because both were both were victims of to change his view of
569 Derry? victims of war both were sad physical impairment life. d
Derek- a boy of 14 and
has acid burnt on his
570 Who is Derry? face a small boy a boy a young boy a
 ANSWER
S.NO QUESTION OPTION-A OPTION-B OPTION-C OPTION-D
KEY
What unites Mr. Lamb and their physical
571 Derry? their age their woes their life stories impairment d
by pulling down the
How does Mr. Lamb keep by chatting with ripe crab apples of his
572 himself busy? by reading books people garden All these d
Why did Derry go to Mr.
573 Lamb's garden? to steal apples to speak to Mr. Lamb to help the old man to feel that place d
How did Derry enter the by climbing the garden
574 garden? from the front gate from the side gate from back gate wall d

Why did Mr. Lamb keep to chat with the people

the door of his garden to keep an eye over his and the children who
575 open? garden to be safe come there to take fruit none c

Why did children call Mr. because he stopped because of his broken
576 Lamb Lamey Lamb? them from taking apples he spoke rudely they didn't like him leg in a bomb exploison d
Why didn't Mr. Lamb feel
hurt by chidren's because he thought that he want them to play in
577 comments? it suits him he loves children he likes them his garden a
What does Mr. Lamb grow
578 in his garden? cherry peach pomegranate apples d
How did Mr. Lamb pick with the help of his with the help of using a ladder and a
579 apples? bending down servant children stick d
How did Mr. Lamb use the he used to make jelly
580 apples? made jam made pickle earned money with them d
Why did Derry go to Mr. because of his wish to he wanted to play in the
581 Lamb at the end? live a free life he wanted apples garden none a
 ANSWER
S.NO QUESTION OPTION-A OPTION-B OPTION-C OPTION-D
KEY
Why did Derry's mother because she didn't want
stop him to stay with Mr. because he would because he talked too him to stay with a
582 Lamb? because he was not well scold him much stranger d
Why did Derry share his because he understood
583 fear with Mr. Lamb? because he had a garden because he was old him and was friendly none c
How did Mr. Lamb help by giving him a positive
584 Derry? by giving him apples by talking to him by helping his mother outlook towards life d
because except a burnt
Why did Mr. Lamb call because he had a face he had a perfectly
585 Derry blessed? because he was young mother because he had friends healthy body d
Which story did Mr. Lamb
586 narrate to Derry? Cindrella The snowman The Dwarfman the beauty of the beast d
What kind of a garden did
587 Mr. Lamb have ? cherry plum peach Apple garden d
Where was Mr. Lamb's
588 house? on atree on the road on a street inside the garden d
How did Derry burn his
589 face? in a fire with a gas stove hot water acid burnt his face d
Why even inspite of because he never let
physical disability Mr. because he had a himself to be alone and
590 Lamb did not feel lonely? because he was busy garden he had servants keep himself busy d
Why did Mr. Lamb keep to have fine contact with
the door of his garden to avoid opening the the outer world and
591 open? to let the people come in to get fresh air door again and again enjoy d
Why did Derry develop an he didn't have a big he didn't have much because of his burnt
592 inferiority complex? house money face none c
because he couldn't
Why did Derry like to be bear with people's because of inferiority
593 alone? because of burnt face comments complex All these d
 ANSWER
S.NO QUESTION OPTION-A OPTION-B OPTION-C OPTION-D
KEY

he encouraged Derry to
How the meeting With Mr. be friends with everyone he taught him to look
Lamb became a turning and not to be bothered at everything he taught him to admire
594 point for Derry? by their comments positively everything All these d
What did Derry learn from learnt to love and
595 the fairy tale? how to look beautiful how to make friends appreciate himself All these d

How was Mr. Lamb happy because of his because he had grown
596 inspite of his disability? acceptance of it because he was wise old All these d
because of inferioritu
Why did Derry always find complex as he had a
597 a vacant place to live? he liked to be alone was scared of people burnt face All these d
because he expected no
Why was Derry startled one else but seeing
598 entering the garden? because of trees because of apples Mr.Lamb none c
What complex does Derry
599 suffer from? Superiority oedipus inferiority All these c
Why did Mr. Lamb not because he wanted
600 have curtains in his house? it's difficult to wash too expensive visitors in his house none c
What did Mr. Lamb tell he never mind even if
601 about himself? he had a tin leg still he was happy children teased him All these d
What specific things about always remains
Mr. Lamb does Derry A man of firm happy inspite of his
602 notice? resolution deformitu had a positive outlook All these d
 ANSWER
S.NO QUESTION OPTION-A OPTION-B OPTION-C OPTION-D
KEY
both were good
companions and
Lamb's mature
In what sense was experiences and words
friendship between Lamb helped Derry to have a
603 and Derry was fruitful? he gave him fruit to eat his maturity positive view of life none c
What draws Derry towards
604 Lamb? his appearance his grief his positive outlook All these c
If Derry didn‘t go back, he was Mr Lamb would not let him Mr Lamb would make he wouldn‘t be able to pick he‘d never go anywhere in the
605 scared ___ in other friends crabapples world again d
How far is Derry‘s house from
606 Mr Lamb‘s? A mile 2 miles 3 miles 4 miles c
The boy‘s name is __ but he
607 prefers Dennis Derek Derham Derrain b
Mr. Lamb claimed he had
608 ______ friends hundreds of no two or three a couple of a
Derry felt Mr Lamb said ___
609 things peculiar sad funny profound a
610 Derry didn‘t like people being friendly being afraid of him being affectionate being sympathetic b

611 The gate to Mr Lamb‘s house is always shut heavily guarded barricaded always open d

The terrible woman said about

612 Derry that it was a face———- no one could love everyone could love only a mother could love kids would be scared of c
613 What ate Derry‘s face away? Mites Disease An accident Acid d
614 How old is Derry? 13 14 15 16 b

SKV VIDHYAASHRAM SENIOR SECONDARY SCHOOL

FICTION-5- EVANS TRIES AN O-LEVEL
ANSWER
S.NO QUESTION OPTION-A OPTION-B OPTION-C OPTION-D
KEY
 ANSWER
S.NO QUESTION OPTION-A OPTION-B OPTION-C OPTION-D
KEY

665 Name the author of the lesson. William Blake Sir Johnson H.L.Hegde Norman Colin Dexter d
Why did Evan decide to take the to plan an escape from the
666 O level exam? to keep his hat on his head to study to add to his academics prison d

What kind of a person was pleasing personality and a

667 Evans? Kleptomaniac tendency to mislead stealing habit All these d
Why was Evans called 'Evans because of his pleasing because he keeps hat on for escaping from prison
668 the break? personality his head thrice All these c
to conceal his efforts of
Why did Evans drape a blanket changing dress to look like because he was feeling to hide himself from the
669 around his shoulder? MCleery cold police All these a

to give correct name of hotel

What two purposes did the to Evans and exact date and to inform Evan Gang his
670 correction slip serve? time of exam to Evans to help Evan escape plan of escape All these a
How did Evan escape from the by befooling the his friend Prison officer
671 jail? by jumping the wall watchman released him all c
What is Norman Colin Dexter for his Inspector Morse series
672 known for? for his writings for his poems for his plays of novels d

When was for his Inspector

673 Morse series of novels written? between 1975 -1999 between 1975 -1998 between 1975 -1997 between 1975 -1994 a
Who ordered Evans to take off
674 his hat? Jackson Stephens The Governor None a
Why was the Governor not ready to stop Evan from taking
675 to take risk? to bring a good name exam to avoid any bad name none c
Who checked the cell
676 thoroughly? The police The Governor Jackson and Stephens Stephens c
Why did Evans request not to Evans considered it lucky for
677 take off his hat? he was feeling cold to give a smart look he loved to wear himself d
Why couldn't Stephens identify
678 Evans' trick? because he was not trained he was a new recruit he was not experienced none b
How could Evans' plan of escape because he keeps his hat
679 become a success? because of his wits on his head because he was cunning all a
 ANSWER
S.NO QUESTION OPTION-A OPTION-B OPTION-C OPTION-D
KEY
680 Who was Carter? a policeman watchman Detective Superintendent None c

Who arrived first on the scene Detective Superintenden

681 after Stephen found Mcleery? Jackson Stephens Carter None c
Whom did Stephen actually
682 catch? Mcleerey Evans a thief All a
the invigilator who had been
appointed by the Governor to
683 Who was Mc Leery? Evan's friend policeman inspector invigilate d
How did Evan outwit the
684 Governor? by taking exam by putting his hat by keeping a letter by escaping again d
How was the governor able to with the help of Ordnance
685 locate Evans? by putting together 6 figures by decoding survey map of oxfordshire All these d
in the middle of chipping
686 Where was Evan located? in the middle east in Japan Norton none c
From where did they find the
name of the hotel where Evan
687 was staying? from the police from the people secret agent from the correction slip d

What was the name of the hotel

688 where Evans was staying? Palampura The Golden Palms The Golden Era The Golden Lion d
689 What aided Evan's arrest? his friends his gang secret agents The clues Evan left d
690 Where were the clues left? on the table in the cell on the mobile on the question paper d

Why did Evans clip his hair to aid his escape plan and to
691 short? pass off as Mc Leery later he was feeling hot to give modern look to give a young look a
to take away Stephen so that
What was the purpose of the Evan could give final touches to give time to Evan to
692 second call? to his makeup run to befool Stephen and Jack none a
From whom did the governor
693 receive the first call? Assisstant Secretary Joint Secretary Assisstant commissioner All a
 ANSWER
S.NO QUESTION OPTION-A OPTION-B OPTION-C OPTION-D
KEY

by demanding prison van for

How did the first call mislead the a remand case where as it by giving wrong
694 governor? was needed for Evan's escape information by calling him to CM office none a

What did the Governor want he wanted him to go with he wanted him to he wanted him to accompany
695 Carter to do? he wanted him to check Evan Evan accompany him injured Mcleery d
What was there in the small
brown suitcase that Mcleery
696 carried? sealed question papers yellow invigilation form special authentication card All these d
What information did the
governor receive from the Ean was seen near
697 detective Superintendent? Mcleery had spotted Evan Elsfield way chased Evan but lost him All these d
What did the Governor tell the
Secretary of the examination can imitate stars and was
698 Board? Evan is a pleasing person star of Christmas concert was a kleptomaniac All these d
How can we say that Evan could he is unable to understand
not get through the O Level even simple expression like
699 German examination? Gutten Gluck he didn't study didn't attend any class was behind the bars a
to avoid being detected as he
Why was Evan keeping the hat had clipped his hair short to
700 on his head? to cheat to avoid cold to give a smart look look like Mcleery d
All belongings were taken
away from Evan, The
What precautions did the invigilator was frisked and a
authorities take to conduct the The Governor personally Evan's cell was checked police officer was posted to
701 examination smoothly? supervised security thoroughly keep a vigil All these d
to ensure that he had no
objectionable material with to check if he was a real
702 Why was the invigilator frisked? him to check his true identity man none a
his friend a prison officer
What made Evan have his last opened his handcuffs and
703 laugh? helped him to escape Evan was locked up Evan was released None a
 ANSWER
S.NO QUESTION OPTION-A OPTION-B OPTION-C OPTION-D
KEY
What should be the Governor's
plan to bring Evan back to He should have sent him by He should have sent him He himself should have
704 prison from the hotel? air with more people travelled along None c
705 thein
The police laid their hands on Evans Lion‘s Den
a hotel named ___ Lion‘s Cage the Golden Lion the Golden Web c
706 Carter tells Governor that he had left
Radcliff
EvansHospital
at __ Broad Street St. Mary‘s Mag Elsfield Way a
707 McLeery directed the superintendent
Radcliff
to leadHospital
him towards ___ Elsfield Way Broad Street Oxford Lane b
708 The wounded man in the cell was McLeery
___ Jackson Stephens Evans d
At 11:22 __ minutes before the
examination was to be over
Jackson called Stephens telling
him that the Governor wanted to
709 speak with him 2 3 4 5 b
710 Evans is told about the correctionspage
on ___
three,
by line
McLeery
fifteen page three, line nine page two, line twelve page two, line fifteen a
711 The examination started at ——- 9:15 AM 9:25 AM 9:35 AM 9:45 AM b
712 The Index number was ___ 303 313 323 333 b
713 McLeery said he was suffering from
diabetes
___ cough piles cold c
714 Governorswitched on the receiver 9:00
at ___
AM 9:10 AM 9:20 AM 9:30 AM b
 SKV VIDHYAASHRAM SENIOR SECONDARY SCHOOL

Grade/Section: COMMERCE/ XII Subject: ECONOMICS

(030) CHAPTER WISE MCQ QUESTION & ANSWERS
PART – A
MACROECONOMICS
Chapter 1
Introduction to Macroeconomics with
I. Choose the correct alternative.
1.
What is known as the study of individual units?
(A) Macroeconomics
(B) Microeconomics
(C) Income and Employment Theory
(D) Development economics

Answer: (B) Microeconomics

2.
What is the main cause of all economic problems?
(A) Abundance
(B) Convenience
(C) Scarcity
(D) None of these
Answer: (C) Scarcity
3.
Study of aggregates is known as _________
(A) Macroeconomics
(B) Microeconomics
(C) Price theory
(D) Factor price determination
Answer: (A) Macroeconomics
4.
What is the name of the book written by J.M. Keynes?
(A) Wealth of Nation
(B) Political economy
(C) The General Theory of Employment, Interest and Money
(D) None of these
Answer: (C) The General Theory of Employment, Interest and Money
5.
When was the famous book of Prof. Keynes published?
(A) 1930
(B) 1931
(C) 1936
(D) 1940
Answer: (C) 1936
6.
When did the great depression occur?
(A) 1929-30
(B) 1934-35
(C) 1938-39
(D) 1941-42
Answer: (A) 1929-30
7.
Who is known as the father of modern macroeconomics?
(A) Adam Smith
(B) J.M.Keynes
(C) Samuelson
(D) Hicks
Answer: (B) J. M. Keynes
8.
Mr. Skund Kumar wants to study the national income. Which branch of economics will he have to study?
(A) Microeconomics
(B) Price theory
(C) Factor price determination
(D) Macroeconomics
Answer: (D) Macroeconomics

II. Fill in the blanks with the correct answer.

1.
The mother of all economic problems is _________

Answer: scarcity
2.
Macroeconomics is defined as that branch of economics, which studies economic activities of an economy as a
_______
Answer: whole
3.
_______ was the founding father of modern economics.
Answer: Adam Smith
4.
Keynes book on Income and Employment came into light in the year _________
Answer: 1936
5.
Aggregate Demand is the sum total of consumption and _________
Answer: investment
6.
The period of the great depression was from __________
Answer: 1929-33

III. State whether the following statements are true or false.

1.
Capital, land, labor, and entrepreneur are the factors of production.

Answer: True
2.
The expenses which raise productive capacity are known as investment expenditure.
Answer: True
3.
The domestic country may sell goods to the rest of the world. It is called imports.
Answer: False
4.
The domestic country may buy goods from the rest of the world. It is called exports.
Answer: False
5.
The capitalist economy works for social welfare.
Answer: False
6.
Microeconomics deals with the aggregate economic variable of an economy.
Answer: False
7.
‘Save more’ is always a virtue.
Answer: False

IV. Match the following.

1.

Column-I Column-II
1. Worldwide Depression (A) 1936
2. Publication year of Keynes’s book (B) 1929-30
3. Problem of unemployment (C) Microeconomics study
4. Study of the sugar industry (D) J.M.Keynes
5. Father of Macroeconomics (E) Ragnar Frisch
6. Who divided economics into two parts? (F) Macroeconomics study
Answer:
Column-I Column-II
1. Worldwide Depression (B) 1929-30
2. Publication year of Keynes’s book (A) 1936
3. Problem of unemployment (F) Macroeconomics study
4. Study of the sugar industry (C) Microeconomics study
5. Father of Macroeconomics (D) J.M.Keynes
6. Who divided economics into two parts? (E) Ragnar Frisch

Chapter 2
National Income Accounting
1.
GNP at MP = ______
(A) GDPMP – Depreciation
(B) GDPMP + Depreciation
(C) GDPMP ÷ Depreciation
(D) GDPMP + Net factor income from abroad
Answer: (A) GDPMP – Depreciation
2.
NDPMP = ________
(A) GDPMP – Depreciation
(B) GDPFC + Net factor income from abroad
(C) NNPFC + Net indirect taxes
(D) All of these
Answer: (A) GDPMP – Depreciation
3.
NNPMP = ________
(A) GNPMP – Depreciation
(B) NDPMP + Net factor income from abroad
(C) NNPFC + Net indirect taxes
(D) All of these
Answer: (D) All of these
4.
GDPFC =
(A) GDPMP – Net indirect taxes
(B) GDPMP + Net indirect taxes
(C) GDPMP + Subsidies
(D) GDPMP – Indirect taxes
Answer: (A) GDPMP – Net indirect taxes
5.
NDPFC =
(A) GDPFC – Indirect taxes
(B) GDPFC – Depreciation
(C) GDPFC + Economic subsidy
(D) All of these
Answer: (B) GDPFC – Depreciation
6.
NNPFC =
(A) GNPFC – Depreciation
(B) NNPMP + Economic subsidy – Indirect taxes
(C) NDPMP + Net factor income from abroad
(D) All of these
Answer: (D) All of these
7.
Which of the following is the method of measuring National Income?
(A) Income method
(B) Product method
(C) Expenditure method
(D) All of these
Answer: (D) All of these
8.
Why are the intermediate goods not included in the National Income while measuring National Income?
(A) To avoid double accounting
(B) It decreases income
(C) Intermediate goods are not good
(D) All of these
Answer: (A) To avoid double accounting
9.
Who had made the first attempt at National Income Accounting?
(A) Prof. D.R.Gadgill
(B) Simon Kuznets
(C) J.M.Keynes
(D) Gregory King
Answer: (D) Gregory King
10.
Calculation of National Income at Market Prices is known as _________
(A) Money income
(B) Real income
(C) Non-monetary income
(D) None of these
Answer: (A) Money income
11.
Accounting of National Income at constant prices is known as ________
(A) Money income
(B) Real income
(C) Current income
(D) Domestic income
Answer: (B) Real income
12.
Which of the following items are excluded from GNP measurement?
(A) Purely financial transactions
(B) Transfer of used goods and non-market goods and services
(C) Illegal activities and the value of leisure
(D) All of these
Answer: (D) All of these
13.
The subject of the Study of Macro Economics is:
(a) The Principle of National Income
(b) The Principle of Consumer
(c) The Principle of Producer
(d) None of these
Answer: (a) The Principle of National Income
14.
Macro Economics Studies:
(a) Employment opportunities in the economy
(b) Theory of supply of Commodities
(c) Elasticity of demand in Scooter
(d) Price of wheat in the market
Answer: (a) Employment opportunities in the economy
15.
General Price Level is studied in:
(a) Micro Economics
(b) Macro Economics
(c) Both (a) and (b)
(d) None of these
Answer: (b) Macro Economics
16.
Employment Theory is related to :
(a) Static Economics
(b) Micro Economics
(c) Macro Economics
(d) None of these
Answer: (c) Macro Economics
17.
Increase in Stock of Capital is known as:
(a) Capital Loss
(b) Capital Profit
(c) Capital Formation
(d) None of these
Answer: (c) Capital Formation
18.
Which of the following is sPktock ?
(a) Wealth
(b) Saving
(c) Export
(d) Profit
Answer: (a) Wealt
19.
Which one of the following is included in circular flow?
(a) Real Flow
(b) Money Flow
(c) Both (a) and (b)
(d) None of these
Answer: (c) Both (a) and (b)
20.
Which one of the following is included in ‘Stock’?
(a) Quantity of Money
(b) Wealth
(c) Quantity of wheat stored in a warehouse
(d) All the above
Answer: (d) All the above
21.
Which one is included inflow ?
(a) Consumption
(b) Investment
(c) Income
(d) All of these
Answer: (b) Investment
22.
Which of the following is included in real flow?
(a) Flow of Goods
(b) Flow of Services
(c) Both (a) and (b)
(d) None of these
Answer: (c) Both (a) and (b)
23.
Which services are provided by families to a firm?
(a) Land
(b) Labour
(c) Capital and Enterprises
(d) All the above
Answer: (d) All the above
24.
Which one is included in the three-sector model?
(a) Family
(b) Firm
(c) Government
(d) All of these
Answer: (d) All of these
25.
Which one is included in the four-sector model?
(a) Family, Firm, Industry
(b) Family, Firm, Government
(c) Family, Firm, Government, Foreign Sector
(d) None of the above
Answer: (c) Family, Firm, Government, Foreign Sector
26.
Which is the equilibrium condition of circular flow in the four sector model?
(a) C + I
(b) C + I + G
(c) C + I + G + (X-M)
(d) None of these
Answer: (c) C + I + G + (X-M)
27.
The primary sector includes:
(a) Agriculture
(b) Retail trading
(c) Small Industries
(d) All the these
Answer: (d) All the these
28.
For a four sector or open economy the condition for equilibrium is:
(a) Savings + taxes + Imports = Investment + govt, expenditure + exports
(b) Total Leakages = Total Injections
(c) Aggregate output = Aggregate Expenditure
(d) All of these
Answer: (d) All of these
29.
Which service is included in Tertiary Sector?
(a) Mining
(b) Construction
(c) Communication
(d) Animal Husbandry
Answer: (c) Communication
30.
Which of the following is not flow?
(a) Capital
(b) Income
(c) Investment
(d) Depreciation
Answer: (a) Capital
31.
The market price of all final goods of a country in a year is known as:
(a) GDPMP
(b) GDPFC
(c) NNPFC
(d) None of these
Answer: (a) GDPMP
32.
Which one is true?
(a) GNP = GDP + Depreciation
(b) NNP = GNP + Depreciation
(c) NNP = GNP – Depreciation
(d) GNP = NNP – Depreciation
Answer: (c) NNP = GNP – Depreciation
33.
GNPMp =?
(a) GDPMp – Depreciation
(b) GDPMp + Net Factor Income from Abroad
(c) GNPMp + Subsidy
(d) None of the above
Answer: (b) GDPMp + Net Factor Income from Abroad
34.
NNPMP = ?
(a) GNPMp – Depreciation
(b) GNPMp + Depreciation
(c) GNPMp + Indirect Tax
(d) None of the above
Answer: (a) GNPMp – Depreciation
35.
Depreciation expenses are included in:
(a) GNPMp
(b) NNPMp
(c) NNPFC
(d) None of these
Answer: (a) GNPMp
36.
NDPFC = ?
(a) NDPMP – Indirect Tax
(b) GNPMP – Indirect Tax + Subsidy
(c) NDPMP – Subsidy
(d) NDPMF – Depreciation
Answer: (b) GNPMP – Indirect Tax + Subsidy
37.
Net National Income at Factor Cost is called?
(a) National Income
(b) Gross Investment
(c) Domestic Income
(d) None of these
Answer: (a) National Income
38.
Which one is included in National Income?
(a) Rent, Wage, Interest
(b) Rent, Wage, Salary
(c) Rent, Profit, Interest
(d) Rent, Wage, Salary, Interest, Profit
Answer: (d) Rent, Wage, Salary, Interest, Profit
39.
What is the consumption of fixed capital called?
(a) Capital formation
(b) Depreciation
(c) Investment
(d) All of these
Answer: (b) Depreciation
40.
Which of the following is correct?
(a) Disposable Income = Personal Income – Direct Taxes
(b) Disposable Income = Private Income – Direct Taxes
(c) Disposable Income = Personal Income – Indirect Taxes
(d) Disposable Income = Private Income – Indirect Taxes
Answer: (a) Disposable Income = Personal Income – Direct Taxes
41.
If for a country net factor income from abroad is negative then:
(a) GDP < GNP
(b) GDP > GNP
(c) GDP ≥ GNP
(d) GDP = GNP
Answer: (b) GDP > GNP
42.
The market value of all final goods and services produced in an economy over a year is called :
(a) Gross National Product
(b) National Income
(c) Gross Domestic Product
(d) Net National Product
Answer: (c) Gross Domestic Product
43.
Which method is adopted in measuring National Income?
(a) Production Method
(b) Income Method
(c) Expenditure Method
(d) All of these
Answer: (d) All of these
44.
Which sector is included in an economy?
(a) Primary
(b) Secondary
(c) Tertiary
(d) All of these
Answer: (d) All of these
45.
Which of the following is not included in the calculation of Gross National Product?
(a) Purchase and Sale of Old commodities
(b) Intermediate Commodities
(c) (a) and (b) both
(d) None of the above
Answer: (c) (a) and (b) both
46.
Which one of the following services are included in the Secondary Sector?
(a) Insurance
(b) Manufacturing
(c) Trade
(d) Banking
Answer: (b) Manufacturing
47.
Which one is included in Primary Sector?
(a) Land
(b) Forest
(c) Mining
(d) All these
Answer: (d) All these
48.
To include the value of goods or services more than one time while calculating National Income is called :
(a) Single Counting
(b) Double Counting
(c) Multiple Counting
(d) None of these
Answer: (b) Double Counting
49.
Which one is a component of profit?
(a) Dividend
(b) Undistributed Profit
(c) Corporate Profit Tax
(d) All of these
Answer: (d) All of these
50.
Which one is included in National Income?
(a) Transfer Earnings
(b) Sale proceeds of Shares and Bonds
(c) Black Money
(d) None of the Above
Answer: (d) None of the Above
51.
Which one is included in the calculation of National Income?
(a) New Final Goods and Services
(b) Earned Income of Indian Companies in Abroad
(c) Expenses made by Foreign Tourists in the country
(d) All the above
Answer: (d) All the above
52.
Which one is the limitation of Macro Economics?
(a) Collective Economic Paradox
(b) Ignores Individual Units
(c) Both (a) and (b)
(d) None of these
Answer: (c) Both (a) and (b)
53.
Macro-economics is the study of:
(a) Principle or Theories of national income
(b) Consumer’s theory
(c) Production theory
(d) None of these.
Answer: (a) Principle or Theories of national income
54.
Out of the following which is not a flow:
(a) Capital
(b) Income
(c) Investment
(d) Depreciation.
Answer: (a) Capital
55.
From the following which method is used for measuring national income:
(a) Production method
(b) Income method
(c) Expenditure method
(d) All of the above.
Answer: (d) All of the above.
56.
Which of the following is included in the primary sector:
(a) Land
(b) Forest
(c) Mines
(d) All of the above.
Answer: (d) All of the above
57.
Total national income divided by total population is known as:
(a) Private income
(b) Personal income
(c) Personal spendable income
(d) Per capita income.
Answer: (d) Per capita income
58.
Production enterprises are divided in:
(a) Two sectors
(b) Three sectors
(c) Four sectors
(d) Five sectors.
Answer: (b) Three sectors

Fill in the blanks:

1.
________ income is the value of current income at base-year prices.

Answer: Real
2.
__________ flow shows flow of goods and services across different sectors.
Answer: Real

3.
_______ sector is also known as the service sector.

Answer: Tertiary
4.
_________ is an economic variable that is measured over a specific period of time. It is a dynamic concept.
Answer: Flow
5.
________ is the loss of value of fixed assets due to normal wear and tear.
Answer: Depreciation
6.
Environmental pollution caused by industries is a _______ externality.
Answer: negative
7.
_______ are the economic assistance given by the government for the general welfare.
Answer: Subsidies
8.
Investment refers to addition to the ________ of an economy. For example purchase of machinery, construction of
the metro.
Answer: capital stock

9.
Nominal GDP is the value of GDP at _______ prices.

Answer: current
10.
________ means estimating the value of goods and services more than once.
Answer: Double counting
11.
Agriculture is included in the…………… sector.
Answer: Primary
12.
Pigou has divided welfare into ………….. parts.
Answer: Two
13.
Chinese product is included in …………… area of the economy.
Answer: Secondary
14.
National income in India is calculated by………………
Answer: Central statistical organisation
15.
The total value of all final goods and services produced within the domestic territory of a country during an
accounting year is known as ……….
Answer: GDP
16.
……….. is an index of economic development of the country.
Answer: National income.

State true or false:

1.
As compared to developed countries, India’s per capita income is quite less.

Answer: True
2.
Black money has given birth to a parallel economy in the country.
Answer: True
3.
The major contribution to India’s national income is from the secondary sector.
Answer: False
4.
Electricity, LPG, and water supply are included in the primary sector.
Answer: False
5.
Income from gifts is included in the national income.
Answer: False
6.
The sale of second-hand goods is not included in the national income.
Answer: True

Match the following:

Question 1.

‘A’ ‘B’
1. Fish culture (a) Tertiary sector
2. Highest contribution in national income (b) Year 1952
3. National income committee was established in (c) Mixed method
4. National income calculation is done by (d) Year 1949
5. Establishment of C.S.O. (e) Primary sector.
Answer:
‘A’ ‘B’
1. Fish culture (e) Primary sector.
2. Highest contribution in national income (a) Tertiary sector
3. National income committee was established in (d) Year 1949
4. National income calculation is done by (c) Mixed method
5. Establishment of C.S.O. (b) Year 1952
Question 2.

Column-I Column-II
1. Real flow (A) Imports, savings, etc.
2. Money flow (B) Exports, investments, etc.
(C) Balance in the bank account as of January 1st,
3. Examples of injections
2019
4. Examples of leakages (D) Income per Month
5. Examples of stock (E) Income from a self-employed person
6. Examples of flow (F) GNP at constant prices
7. GDPMP (G) The flow of goods and sen/ices
8. Mixed-income (H) GDPFC + NIT – Subsidies
9. Change in the stock (I) Depreciation
10. Nominal GNP (J) The flow of money across different sectors
11. Real GNP (K) Closing stock – opening stock
12. Consumption1 of fixed capital (L) GNP at current prices
Answer:
Column-I Column-II
1. Real flow (G) The flow of goods and sen/ices
2. Money flow (J) The flow of money across different sectors
3. Examples of injections (B) Exports, investments, etc.
4. Examples of leakages (A) Imports, savings, etc.
5. Examples of stock (C) Balance in the bank account as of January 1st, 2019
6. Examples of flow (D) Income per Month
7. GDPMP (H) GDPFC + NIT – Subsidies
8. Mixed-income (E) Income from a self-employed person
9. Change in the stock (K) Closing stock – opening stock
10. Nominal GNP (L) GNP at current prices
11. Real GNP (F) GNP at constant prices
12. Consumption1 of fixed capital (I) Depreciation
Multiple choice questions

1. Net National product at factor cost is also known as

(a) National Income (b) Domestic Income (c) Per capita Income (d) Salary.

2. Primary sector is …………………..

(a) Industry (b) Trade (c) Agriculture (d) Construction.

3. National income is measured by using ……….. methods.

(a) Two (b) Three (c) Five (d) Four

4. Income method is measured by summing up of all forms of ……………

(a) Revenue (b) Taxes (c) expenditure (d) Income

5. Which is the largest figure?

(a) Disposable income (b) Personal Income (c) NNP (d) GNP

6. Expenditure method is used to estimate national income in …………..

(a) Construction sector (b) Agricultural Sector (c) Service sector (d) Banking sector

7. Tertiary sector is also called as ………. sector

(a) Service (b) Income (c) Industrial (d) Production

8. National income is a measure of the ……… performance of an economy.

(a) Industrial (b) Agricultural (c) Economic (d) Consumption

9. Per capita income is obtained by dividing the National income by …………

(a) Production (b) Population of a country (c) Expenditure (d) GNP

10. GNP = ………. + Net factor income from abroad.

(a) NNP (b) NDP (c) GDP (d) Personal income

11. NNP stands for ……….

(a) Net National Product (b) National Net product (c) National Net Provident (d) Net National
Provident

12. ……… is deducted from gross value to get the net value.
(a) Income (b) Depreciation (c) Expenditure (d) Value of final goods

13. The financial year in India is ……

(a) April 1 to March 31 (b) March 1 to April 30 (c) March 1 to March 16 (d) January 1 to
December 31
14. When net factor income from abroad is deducted from NNP, the net value is …….
(a) Gross National Product (b) Disposable Income (c) Net Domestic Product (d) Personal Income

15. The value of NNP at production point is called ……

(a) NNP at factor cost (b) NNP at market cost (c) GNP at factor cost (d) Per capita income

16. The average income of the country is ….

(a) Personal Income (b) Per capita income (c) Inflation Rate (d) Disposal Income17. The value of
national income adjusted for inflation is called ….

(a) Inflation Rate (b) Disposal Income (c) GNP (d) Real national income

18. Which is a flow concept ?

(a) Number of shirts (b) Total wealth (c) Monthly income (d) Money supply

19. PQLI is the indicator of ………………

(a) Economic growth (b) Economic welfare (c) Economic progress (d) Economic development

20. The largest proportion of national income comes from …….

(a) Private sector (b) Local sector (c) Public sector (d) None of the above

Answers
1 2 3 4 5 6 7 8 9 10
a c b d d a a c b c
11 12 13 14 15 16 17 18 19 20
a b a c a b d c b a

Important Questions for CBSE Class 12 Economics Chapter 2 - National

Income Accounting
This article contains the most important questions along with the answers for CBSE Class 12 Economics Chapter 2 –
National Income Accounting, which is curated by the expert Economics teachers from the latest version of CBSE
(NCERT) books.

CBSE Class 12 Macroeconomics Chapter-2 Important Questions

1
Select the meaning of non-market activities from the following options
a. Production
b. Non-marketable
c. Involuntary
d. Economic
: b. Non-marketable
2
What is real flow?
: Real flow is the flow of services and goods between different sectors of an economy. For instance, flow sector
services flow from the household to the enterprise and then vice versa, i.e., from the enterprise to the household again.
3
Differentiate between personal income and private income.
: Mentioned below are the points of differences between personal income and private income:

Personal income Private income

It is the sum total of earned and transfer It can be contemplated as the factor
incomes received by the individuals from the and transfer of the income received
income sources involved within and outside from all the private sources within
the nation. Personal income is calculated as and outside the country.
follows:
Personal income = Private income – Corporate
tax – Corporate savings (undistributed profits)
4
Calculate the net value added at the market price of a firm:

Items Amount

Sale 400
Change in stock -20
Depreciation 30
Net indirect taxes 40
Purchase of machinery 200
Purchase of an intermediate product 250
Answer:
Value of output = Sale + Change in stock
= 400 + (-) 20
= 380
Gross value added at MP = Value of output – Purchase of an intermediate product
= 380 – 250 = 130/-
Net value added at MP = Gross value added at MP – Depreciation
= 130 – 30 = 100/-
Thus, the final answer = ₹ 100/-
5
Nominal GNP is the same as,
a. GNP at constant prices
b. Real GNP
c. GNP at current prices
d. GNP less net factor income from abroad
: c. GNP at current prices
6
What must be added to the domestic factor income to avail national income?
: Net factor income from abroad must be added to the domestic factor income to avail national income.
7
Define real GNP.
: Gross national product calculated at constant prices i.e., via base year price is known as real GNP in economics
8
Which of the following is an example of transfer payment:
a. Free meals in the company canteen
b. Employers’ contribution to social security
c. Retirement pension
d. Old-age pension
: d. Old age pension
9
Calculate the nominal income and private income from the following data.

Contents ₹. (in crores)

Net current transfers from the rest of the world 10

Private final consumption expenditure 600

National debt interest 15

Net exports -20

Current transfers from the government 5

Net domestic product at factor cost accruing to the government 25

Government final consumption expenditure 100

Net indirect tax 30

Net domestic capital formation 70

Net factor income from abroad 10

Answer:
National income = [Private final consumption expenditure + Government final consumption expenditure + Net
domestic capital formation + Net exports + Net factor income from abroad – Net indirect tax]
= 600 + 100 + 70 + (-20) + 10 – 30
= 780 – 50
= 730 crores
Private income = NNP – Net domestic product at factor cost accruing to government + Transfer payments + National
debt interest
= 730 – 25 + (10+5) + 15
= 760 – 25
= 735 crores
10
Providing the reason, explain whether the following are included in the domestic product of India.

• Profits earned by a branch of the foreign bank in India

: Profits earned by a branch of the foreign bank in India will be included in the domestic income of India because the
profits are earned within the domestic territory of India

Important Topics in Economics:

• Consumer Protection Act

• What is Demand?
• Circular Flow of Income
• Consumer Equilibrium
• Central Problems of an Economy

11
Providing the reason, explain whether the following will be included in the domestic product of India.

• Payment of salaries to its staff by an embassy located in New Delhi

: Payment of salaries to its staff by an embassy located in New Delhi will not be involved in the domestic income of
India as it is not a part of the domestic territory of India
12
Providing the reason, explain whether the following will be included in the domestic product of India.
 • Interest received by an Indian resident from its abroad firms
: Interest received by an Indian resident from its abroad firms will not be included in the domestic income of India
because it is the factor income from abroad.
13
Microeconomics is different from macroeconomics because:
a. Microeconomics deals with economic behaviour
b. Microeconomics deals with individual behaviour
c. Microeconomics deals with prices only
d. Microeconomics deals with the government’s decisions
: b. Microeconomics deals with individual behaviour
14
Which of the following is an example of macroeconomics?
a. Price determination
b. Consumer’s equilibrium
c. Producer’s equilibrium
d. Inflation
: d. Inflation
15
What is national disposable income?
: National disposable income is the type of an income that is obtainable to the whole economy for the spending
purpose or for disposition.
It is computed as, NNP + Net current transfers from abroad (NDI)

Chapter 3
Money and Banking
1.
What is the defect of the barter system?
(A) Lack of double coincidence of wants
(B) Difficulty in the measurement of value
(C) Difficulty in store of value
(D) All of these
Answer: (D) All of these
2.
Which of the following is the credit money?
(A) Cheque and draft
(B) Promissory note
(C) Exchange note
(D) All of these
Answer: (D) All of these
3.
Which among the following is the near money?
(A) Bonds
(B) Insurance policy
(C) Securities
(D) All of these
Answer: (D) All of these
4.
Which of the following is the feature of money?
(A) General acceptability
(B) Homogeneous unit
(C) Liquid asset
(D) All of these
Answer: (D) All of these
5.
In order to encourage investment in the economy, the Central Bank may ________
(A) Reduce Cash Reserve Ratio
(B) Increase Cash Reserve Ratio
(C) Sell Government securities in the open market
(D) Increase Bank Rate
Answer: (A) Reduce Cash Reserve Ratio
6.
Institution that accepts deposits for lending purpose is known as __________
(A) Commercial Bank
(B) Central Bank
(C) Government
(D) Public
Answer: (A) Commercial Bank
7.
Which of the following is the function of a commercial bank?
(A) Accepting deposits
(B) Credit creation
(C) Agency function
(D) All of these
Answer: (D) All of these
8.
The central bank can increase the availability of credit by:
(A) Rasing repo rate
(B) Raising reverse repo rate
(C) Buying government securities
(D) Selling government securities
Answer: (D) Selling government securities
9.
Giving permission to withdraw money by an amount more than deposited to is known as _________
(A) Advance
(B) Overdraft
(C) Loan
(D) None of these
Answer: (B) Overdraft
10.
What are the alternative measures of money supply in India?
(A) M1
(B) M2
(C) M3 and M4
(D) All of these
Answer: (D) All of these
11.
Who circulates all mint and one rupee not in India?
(A) Ministry of Finance
(B) RBI
(C) Ministry of External Affairs
(D) State Government
Answer: (A) Ministry of Finance
12.
Which of the following is the narrow measure of the money supply?
(A) M2
(B) M3
(C) M1
(D) M4
Answer: (C) M1
13.
When was the minimum reserve system started in India?
(A) 1947
(B) 1948
(C) 1951
(D) 1957
Answer: (D) 1957
14.
Which is the most liquid measure of the money supply?
(A) M4
(B) M3
(C) M2
(D) M1
Answer: (D) M1
15.
High Powered Money includes:
(A) C + DD + OD
(B) C + R + OD
(C) C + R + TD
(D) C + DD + TD
Answer: (B) C + R + OD
16.
Indian Monetary System is based on ________
(A) Paper Standard
(B) Metallic Standard
(C) Gold Standard
(D) Credit Money Standard
Answer: (A) Paper Standard
17.
Which of the following is the apex bank of India?
(A) RBI
(B) SBI
(C) SBP
(D) PNB
Answer: (A) RBI
18.
Who has the right of note issue?
(A) Central Bank
(B) Commercial Bank
(C) Government
(D) Co-operative Bank
Answer: (A) Central Bank
19.
Which of the following is the function of a Central bank?
(A) Issue of notes
(B) Banker to the Government and Banks
(C) Supply and control of money
(D) All of these
Answer: (D) All of these
20.
The ratio of total deposits that a commercial bank has to keep with RBI is called:
(A) Statutory liquidity ratio
(B) Deposit ratio
(C) Cash reserve ratio
(D) Legal reserve ratio
Answer: (C) Cash reserve ratio
21.
Demand deposits include
(A) Saving account deposits and fixed deposits
(B) Saving account deposits and current account deposits
(C) Current account deposits and fixed deposits
(D) All type of deposits
Answer: (B) Saving account deposits and current account deposits
22.
What are the necessary conditions of the Barter System?
(a) Limited Needs
(b) Limited Exchange Area
(c) Economically Backward Society
(d) All the above
Answer: (d) All the above
23.
What are the advantages of the Barter System?
(a) Simple System
(b) More Mutual Co-operation
(c) No Economic Disparities
(d) All the above
Answer: (d) All the above
24.
Which one is the difficulty of the Barter System?
(a) Lack of Double Coincidence
(b) Difficulty of Division of the Goods
(c) Lack of General Acceptable Measure of Value
(d) All the above
Answer: (d) All the above
25.
Which is the correct order of money evolution?
(a) Commodity Money, Paper Money, Metal Money
(b) Commodity Money, Metal Money, Paper Money, Credit Money
(c) Credit Money, Metal Money, Paper Money
(d) None of the above
Answer: (b) Commodity Money, Metal Money, Paper Money, Credit Money
26.
“Money is what money does.” Who said it?
(a) Hartley Withers
(b) Hawtrey
(c) Thomas
(d) Keynes
Answer: (a) Hartley Withers
27.
Which one is included in the primary function of money?
(a) Medium of Exchange
(b) Measure of Value
(c) Both (a) and (b)
(d) Store of Value
Answer: (c) Both (a) and (b)
28.
Which one is included in the secondary function of money?
(a) To make Deferred Payments
(b) Store of Value
(c) Transfer of Value
(d) All of these
Answer: (d) All of these
29.
“Money is a pivot around which the whole economy clusters.” Who said it?
(a) Keynes
(b) Robertson
(c) Marshall
(d) Hawtrey
Answer: (c) Marshall
30.
The function of money is:
(a) Medium of Exchange
(b) Measure of Value
(c) Store of Value
(d) All the above
Answer: (d) All the above
31.
The functions of money include:
(a) Value determination
(b) Store of value
(c) Means of exchange
(d) All of these
Answer: (d) All of these
32.
Money is a matter which is:
(a) a measure of value
(b) accepted as a means of exchange
(c) used to store wealth
(d) All of these
Answer: (d) All of these
33.
By supply of money we mean :
(a) Money deposited in the bank
(b) Money available with the public
(c) Deposits with post office savings bank
(d) All of these
Answer: (d) All of these
34.
Which of the following is not a function of money?
(a) Medium of exchange
(b) Price stability
(c) Store of value
(d) Unit of account
Answer: (b) Price stability
35.
Which one is the Bank of the Public?
(a) Commercial Bank
(b) Central Bank
(c) Both (a) and (b)
(d) None of the above
Answer: (a) Commercial Bank
36.
The primary function of Commercial Bank is?
(a) Accepting Deposits
(b) Advancing Loans
(c) Credit Creation
(d) All of these
Answer: (d) All of these
37.
Deposits accepted by the Commercial Banks:
(a) Current Deposits
(b) Saving Deposits
(c) Time Deposits
(d) All of these
Answer: (d) All of these
38.
What type of loan is advanced by Commercial Banks?
(a) Cash Credit
(b) Overdraft
(c) Loan and Advance
(d) All of these
Answer: (d) All of these
39.
Which function is the Secondary Function of Commercial Banks?
(a) Agency Function
(b) General Utility Function
(c) Social Function
(d) All of these
Answer: (d) All of these
40.
Which is the Agency Function of Commercial Banks?
(a) Advancing Loans
(b) Accepting Deposits
(c) Act as Trustee
(d) Locker Facility
Answer: (c) Act as Trustee
41.
Credit Multiplier is:
(a) 1CRR
(b) cash×1 CRR
(c) Cash x CRR
(d) None of these
Answer: (a) 1CRR
42.
Credit money is increased when CRR:
(a) Falls
(b) Rises
(c) Both (a) and (b)
(d) None of these
Answer: (a) Falls
43.
The full form of ATM is:
(a) Any Time Money
(b) All Time Money
(c) Automated Teller Machine
(d) Both (a) and (b)
Answer: (c) Automated Teller Machine
44.
The main function of a commercial bank is:
(a) Credit control
(b) Loaning to other banks
(c) Accept deposits from customers
(d) All the above
Answer: (c) Accept deposits from customers
45.
What is the Central Bank of India?
(a) Commercial Bank
(b) Central Bank
(c) Private Bank
(d) None of these
Answer: (a) Commercial Bank
46.
Commercial banks:
(a) Issue currency notes
(b) Accepts deposits from customers
(c) Provide loans to customers
(d) Only (b) and (c)
Answer: (d) Only (b) and (c)
47.
What is true for the Central Bank?
(a) Apex Bank of the Country
(b) Ownership of the Government
(c) Regulates the entire banking system in the country
(d) All the above
Answer: (d) All the above
48.
Central Bank of India is:
(a) Reserve Bank of India
(b) State Bank of India
(c) Central Bank of India
(d) Bank of India
Answer: (a) Reserve Bank of India
49.
Which of the following is the function of the Central Bank?
(a) Monopoly of Note Issue
(b) Banker of the Government
(c) Custodian of Foreign Exchange Reserves
(d) All the above
Answer: (d) All the above
50.
Which type of currency is issued by Central Bank?
(a) Currency
(b) Credit Money
(c) Coins
(d) All of these
Answer: (a) Currency
51.
Which is the major objective of credit control?
(a) To maintain Price Stability
(b) To stabilize Exchange Rate
(c) To production and Employment
(d) All the above
Answer: (b) To stabilize Exchange Rate
52.
Which one is true?
(a) Bank rate is a rate at which Central Bank is ready to give credit to commercial banks
(b) Bank rate and interest rates are different
(c) Bank rate is the discount rate of the Central Bank
(d) All the above
Answer: (d) All the above
53.
Which is not a quantitative method of credit control?
(a) Bank Rate
(b) Moral Suasion
(c) Open Market Operations
(d) Change in CRR
Answer: (b) Moral Suasion
54.
Every bank is required to maintain a fixed percentage of its assets in the form of cash is called:
(a) Cash Reserve Ratio
(b) Statutory Liquidity Ratio
(c) Both (a) and (b)
(d) None of the above
Answer: (b) Statutory Liquidity Ratio
55.
Reserve Bank of India was established in :
(a) 1947
(b) 1935
(c) 1937
(d) 1945
Answer: (b) 1935
56.
Monetary policy is related with:
(a) Public Expenditure
(b) Taxes
(c) Public Debt
(d) Open market operations
Answer: (d) Open market operations
57.
Which of the following issue paper currency in the country?
(a) Commercial Bank
(b) Central Bank
(c) World Bank
(d) Industrial Bank
Answer: (b) Central Bank
58.
The central bank controls credit through:
(a) Bank rate
(b) Open market
(c) CRR
(d) All the above
Answer: (a) Bank rate
59.
Which of the following is a qualitative method of credit control?
(a) Variation in cash reserve ratio of banks
(b) Restriction on consumer credit
(c) Open market operations
(d) Variation in bank rate
Answer: (b) Restriction on consumer credit
60.
The major objectives of monetary policy is/are:
(a) Increase in output and employment
(b) Stability in the foreign exchange rate
(c) Price stability
(d) All of these
Answer: (d) All of these
61.
Who regulates the money supply?
(a) Govt, of India
(b) Reserve Bank of India
(c) Commercial Bank
(d) Planning Commission
Answer: (b) Reserve Bank of India
62.
With which Narsimham Committee is related to?
(a) Tax Reforms
(b) Banking Reforms
(c) Agriculture Reforms
(d) Infrastructure Reforms
Answer: (b) Banking Reforms
63.
In which year the second Narsimham Committee was constituted?
(a) 1978
(b) 1991
(c) 1997
(d) 1998
Answer: (d) 1998
64.
Banking Ombudsman Scheme was announced in the year:
(a) 1990
(b) 1995
(c) 1997
(d) 2000
Answer: (b) 1995
65.
Which was included in the purview of the Banking Ombudsman Scheme?
(a) All Scheduled Banks
(b) Co-operative Banks
(c) Commerical Banks
(d) All of these
Answer: (d) All of these
66.
Which committee was constituted for suggesting consumer service improvements in banks?
(a) Raja Chelliah Committee
(b) Goiporia Committee
(c) Verma Committee
(d) Chakrabarty Committee
Answer: (b) Goiporia Committee
67.
For revival and restructuring of weak banks of the public sector, which committee was constituted?
(a) Verma Committee
(b) Goiporia Committee
(c) Rekhi Committee
(d) Narsimham Committee
Answer: (a) Verma Committee
68.
RBI announced the guidelines to issue licenses to new banks of the private sector on:
(a) January 22, 1993
(b) March 15, 1995
(c) April 1, 1999
(d) None of these
Answer: (a) January 22, 1993
69.
Who is the custodian of the Indian Banking system?
(a) Reserve Bank of India
(b) State Bank of India
(c) Unit Trust of India
(d) LIC of India
Answer: (a) Reserve Bank of India
70.
Banking Sector Reforms in India began in:
(a) 1969
(b) 1981
(c) 1991
(d) 2001
Answer: (c) 1991
71.
14 big scheduled commercial banks in India were nationalised in:
(a) 1949
(b) 1955
(c) 1969
(d) 2000
Answer: (c) 1969
72.
Which is associated with reforms in the banking sector?
(a) Year 1991
(b) Narsimham Committee
(c) Y.V. Reddy Committee
(d) Only (a) and (b)
Answer: (d) Only (a) and (b)
73.
“Money is what money does”. Who said this:
(a) Hartley Withers
(b) Harte
(c) Prof. Thomas
(d) Keynes
Answer: (a) Hartley Withers
74.
The function of money is:
(a) Medium of exchange
(b) Measure of value
(c) Store of value
(d) All of the above
Answer: (a) Medium of exchange
75.
The meaning of money supply is:
(a) Money deposits in the bank
(b) Cash available with public
(c) Savings in the post office
(d) All of the above
Answer: (d) All of the above.
76.
What is the Central Bank of India:
(a) Commercial Banks
(b) Central Bank
(c) Private Bank
(d) None of these
Answer: (a) Commercial Banks
77.
Through which method we can withdraw money from the bank:
(a) Drawing letter
(b) Cheque
(c) A.T.M.
(d) All of the above
Answer: (d) All of the above.
78.
Who is the guardian of the Indian Banking System:
(a) Reserve Bank of India
(b) State Bank of India
(c) Unit Trust of India
(d) Life Insurance Company of India.
Answer: (a) Reserve Bank of India
79.
Narasimham Committee is related to what:
(a) Improvement in Taxation
(b) Improvement in Banking
(c) Improvement in Agriculture
(d) Improvement in Infrastructure
Answer: (b) Improvement in Banking

Fill in the blanks:

1.
The exchange of goods for goods is called _____ exchange.

Answer: barter
2.
______ is a narrow concept of money.
Answer: M1
3.
________ is a broad concept of money.
Answer: M3
4.
_______ are the deposits which are payable by the banks to the customers after a fixed period.
Answer: Time deposits
5.
Currency money is also known as ______ money.
Answer: fiat
6.
Supply of money is a _______ concept.
Answer: stock
7.
The money multiplier is the rate of change in _____ due to initial deposits.
Answer: money supply
8.
Currency with public means _____ and ______ with the public outside the bank.
Answer: coins, currency notes
9.
_______ is the Central Bank of India.
Answer: RBI
10.
Commercial banks are an important source of _________ in the economy.
Answer: money supply
11.
Banks serve as a channel between _______ and investors.
Answer: depositors
12.
Two essential functions of a bank are accepting deposit and ________
Answer: advancing loan
13.
The Central Bank is the apex institution of the _______ system.
Answer: Monetary
14.
Bank rate is the _______ instrument of Central Bank.
Answer: Quantitative
15.
Central Bank of India is………………..
Answer: Reserve Bank of India
16.
Bank rate is also known as………………..
Answer: Redemption
17.
The bank generates……………….. deposits in credit creation.
Answer: Derivative
18.
When CRR decreases, credit creation………………..
Answer: Increases
19.
The measure of deferred payment is ……………….. function of money.
Answer: Secondary
20.
Medium of exchange is ……………….. function of money.
Answer: Primary
21.
The static and dynamic function of money is divided by………………..
Answer: Paul Einzig

State true or false:

1.
Money as a medium of exchange solves the problem of lack of double coincidence of want.
Answer: True
2.
Legal tender money has a legal sanction behind it by the government.
Answer: True
3.
M1 includes saving deposits of post office savings banks.
Answer: False
4.
The money supply is a flow variable.
Answer: False
5.
Commercial Bank plays no role in stock of money supply in the economy.
Answer: False
6.
Credit money is money received as credit from banks.
Answer: False
7.
Commercial banks do not create money.
Answer: False
8.
Bank rate is a qualitative method of credit control.
Answer: False
9.
There is an inverse relation between LRR and the size of the money multiplier.
Answer: True
10.
Money is needed for day-to-day transactions.
Answer: True
11.
The precautionary demand for money increases with the proportionate increase in income.
Answer: True
12.
Reserve Bank of India provides loans to the public.
Answer: False
13.
Along with the Reserve Bank of India, Commercial banks are also authorized to issue currency.
Answer: False
14.
Reliable money also includes cheques.
Answer: False
15.
Reserve Bank of India cannot become the owner of any real estate.
Answer: True
Match the following:

Question 1.

‘A’ ‘B’
1. Primary function of money (a) Paper money
2. Indian Rupee is (b) Bad master
3. An institution which deals with money (c) Measure of value
4. RBI established on (d) Bank
5. Money is a good servant but (e) 1 April 1935.
Answer:
‘A’ ‘B’
1. Primary function of money (c) Measure of value
2. Indian Rupee is (a) Paper money
3. An institution which deals with money (d) Bank
4. RBI established on (e) 1 April 1935.
5. Money is a good servant but (b) Bad master

Question 2.

Column-I Column-II
1. Fiat money (A) Reserve Bank of India
2. Legal tender (B) Banking through electronic media
3. Apex bank of India (C) Must be accepted as a medium of exchange
4. Central bank in India (D) Statutory Liquidity Ratio
5. E-banking (E) Circulated with the order of government
6. SLR (F) Cash Reserve Ratio
7. CRR (G) Issuing notes
8. Bank rate (H) The central bank of India
9. Function of commercial bank (I) Determined by the central bank
10. Function of the central bank (J) Accepting deposits
Answer:
Column-I Column-II
1. Fiat money (E) Circulated with the order of government
2. Legal tender (C) Must be accepted as a medium of exchange
3. Apex bank of India (H) The central bank of India
4. Central bank in India (A) Reserve Bank of India
5. E-banking (B) Banking through electronic media
6. SLR (D) Statutory Liquidity Ratio
7. CRR (F) Cash Reserve Ratio
8. Bank rate (I) Determined by the central bank
9. Function of commercial bank (J) Accepting deposits
10. Function of the central bank (G) Issuing notes
1. A Bank is a
a) Financial institution b) Corporate c) An Industry d) Service institutions

2. A Commercial Bank is an institutions that provides services

a) Accepting deposits b) Providing loans c) Both a and b d) None of the above

3. The Functions of commercial banks are broadly classified into

a) Primary Functions b) Secondary functions c) Other functions d) a, b, and c

4. Bank credit refers to

a) Bank Loans b) Advances c) Bank loans and advances d) Borrowings

5. Credit creation means.

a) Multiplication of loans and advances b) Revenue c) Expenditure d) Debt

6. NBFI does not have.

a) Banking license b) government approval c) Money market approval d) Finance ministry
approval

7. Central bank is --------------- authority of any country.

a) Monetary b) Fiscal c) Wage d) National Income

8. Who will act as the banker to the Government of India?

a) SBI b) NABARD c) ICICI d) RBI

9. Lender of the last resort is one of the functions of.

a) Central Bank b) Commercial banks c) Land Development Banks d) Co-operative banks

10. Bank Rate means.

a) Re-discounting the first class securities b) Interest rate c) Exchange rate d) Growth rate

11. Repo Rate means.

a) Rate at which the Commercial Banks are willing to lend to RBI

b) Rate at which the RBI is willing to lend to commercial banks
c) Exchange rate of the foreign bank
d) Growth rate of the economy

12. Moral suasion refers.

 a) Optimization b) Maximization c) Persuasion d) Minimization

13. ARDC started functioning from

a) June 3, 1963 b) July 3, 1963 c) June 1, 1963 d) July 1, 1963

14. NABARD was set up in.

a) July 1962 b) July 1972 c) July 1982 d) July 1992

15. EXIM bank was established in.

a) June 1982 b) April 1982 c) May 1982 d) March 1982

16. The State Financial Corporation Act was passed by

a) Government of India b) Government of Tamilnadu c) Government of Union Territories d)
Local Government.
17. Monetary policy his formulated by.
a) Co-operative banks b)Commercial banks c) Central Bank d) Foreign banks
18. Online Banking is also known as.
a) E-Banking b) Internet Banking c) RTGS d) NEFT
19. Expansions of ATM.
a) Automated Teller Machine b) Adjustment Teller Machine c) Automatic Teller mechanism d)
Any Time Money
20. 2016 Demonetization of currency includes denominations of
a) 􀀅500 and 􀀅1000
b) 􀀅1000 and 􀀅2000
c) 􀀅200 and 􀀅500
d) All the above

Answers:

1 2 3 4 5 6 7 8 9 10
a c d c a a a d a a

11 12 13 14 15 16 17 18 19 20
b c d c d a c b a a
 Chapter 4
Determination of Income and Employment
1.
What is the shape of the Keynesian Aggregate Supply before the level of full employment is attained?
(A) Perfectly inelastic
(B) Perfectly elastic
(C) Unitary elastic
(D) More elastic

Answer: (B) Perfectly elastic

2.
According to classical economists, real wage rate is ______ to the Marginal Productivity of Labour.
(A) Equal
(B) More
(C) Less
(D) None of these
Answer: (A) Equal
3.
What is the cause of Keynesian perfectly elastic Aggregate Supply curve?
(A) Wage price rigidity
(B) Constant Marginal Product of Labour
(C) Both of these
(D) None of these
Answer: (C) Both of these
4.
According to classical economists, there always exists ______ equilibrium in the economy.
(A) Full employment
(B) Underemployment
(C) Over full employment
(D) None of these
Answer: (A) Full employment
5.
What will be APC when APS = 0?
(A) One
(B) Zero
(C) Two
(D) Infinite
Answer: (A) One
6.
If the income is ₹ 400 crores and consumption is ₹ 250 crores, what will be the APC?
(A) 0.67
(B) 0.63
(C) 0.60
(D) 0.58
Answer: (B) 0.63
7.
What is a fiscal measure of correcting deficient demand?
(A) Increase in public expenditure and decrease in taxes
(B) Decrease in public debt
(C) Deficit financing
(D) All of these
Answer: (D) All of these
8.
Which is the measure of correcting excess demand?
(A) Deficit financing
(B) Reduction in taxes
(C) Increase in public expenditure
(D) Increase in public debt
Answer: (D) Increase in public debt
9.
Suppose in a hypothetical economy, the income rises from ₹ 5,000 crores to ₹ 6,000 crores. As a result, the
consumption expenditure rises from ₹ 4,000 crores to ₹ 4,600 crores. Marginal propensity to consume in such a case
would be ______
(A) 0.8
(B) 0.4
(C) 0.2
(D) 0.6
Answer: (D) 0.6
10.
On the basis of government law, the compulsory payment made by the public is known as _________
(A) Expenditure
(B) Investment
(C) Tax
(D) Subsidy
Answer: (C) Tax
11.
Which among is the direct tax?
(A) Income tax
(B) Gift and Corporation tax
(C) Wealth tax
(D) All of these
Answer: (D) All of these
12.
The value of multiplier is:
(A) 1MPC
(B) 1MPS
(C) 11−MPS
(D) 1MPC−1
Answer: (B) 1MPS
13.
If MPC = 1, the value of the multiplier is:
(A) 0
(B) 1
(C) Between 0 and 1
(D) Infinity
Answer: (D) Infinity
14.
Aggregate demand can be increased by:
(A) increasing bank rate
(B) selling govt, securities by RBI
(C) increasing cash reserve ratio
(D) none of these
Answer: (D) None of these
15.
If the marginal propensity to consume is greater than the marginal propensity to save, the value of the multiplier will
be
(A) greater than 2
(B) less than 2
(C) equal to 2
(D) equal to 5
Answer: (A) greater than 2
16.
Supply creates its own Demand. Who gave this law?
(a) J.B.Say
(b) J.S.Mill
(c) Keynes
(d) Ricardo
Answer: (a) J.B.Say
17.
Who is the author of the book ‘General Theory of Employment, Interest, and Money’?
(a) A.C. Pigou
(b) Malthus
(c) J.M. Keynes
(d) Marshall
Answer: (c) J.M. Keynes
18.
Which of the following is true for the Classical Theory of Employment?
(a) State of full employment in the economy
(b) No possibility of over-or under-production in the economy
(c) Both (a) and (b)
(d) None of the above
Answer: (c) Both (a) and (b)
19.
On which factor Keynesian Theory of Employment depends?
(a) Effective Demand
(b) Supply
(c) Production Efficiency
(d) None of the above
Answer: (a) Effective Demand
20.
Which is the determining factor for investment?
(a) Marginal Efficiency of Capital
(b) Interest Rate
(c) Both (a) and (b)
(d) None of these
Answer: (c) Both (a) and (b)
21.
According to Keynes, investment implies:
(a) Financial Investment
(b) Real Investment
(c) Both (a) and (b)
(d) None of the above
Answer: (b) Real Investment
22.
With the increase in investment, MEC:
(a) Rises
(b) Falls
(c) Remains Constant
(d) None of these
Answer: (b) Falls
23.
Which of the following is a Read Investment?
(a) Purchasing of a Share
(b) Purchasing of Old Factory
(c) Construction of Buildings
(d) Opening Deposit Account in the Bank
Answer: (c) Construction of Buildings
24.
APC + APS = ?
(a) ?
(b) 2
(c) 1
(d) 0
Answer: (b) 2
25.
MPC = MPS = ?
(a) ?
(b) 2
(c) 1
(d) 0
Answer: (c) 1
26.
Which or is true?
(a) MPC + MPS = 0
(b) MPC + MPS < 1
(c) MPC + MPS = 1
(d) MPC + MPS > 1
Answer: (c) MPC + MPS = 1
27.
The main component of aggregate demand is:
(a) Individual consumption
(b) Public consumption
(c) Investment
(d) All the above
Answer: (d) All the above
28.
Who is the writer of the book, “Trained Economic Politique”?
(a) Pigour
(b) J.B. Say
(c) Keynes
(d) Ricardo
Answer: (a) Pigour
29.
IF MPC = 0.5, then Multiplier (k) will be:
(a) 1/4
(b) = 0
(c) 1
(d) 2
Answer: (d) 2
30.
On which concept does classical viewpoint depend?
(a) Say’s Law of Market
(b) perfect Flexibility of Wage Rate
(c) Perfect Flexibility of Interest Rate
(d) All of these
Answer: (d) All of these
31.
“Wage cut maintains full employment in the economy.” Who put forward this view?
(a) Pigou
(b) Keynes
(c) Marshall
(d) None of the above
Answer: (a) Pigou
32.
Which one of the following is the determining factor of Equilibrium Income is the Keynesian Viewpoint?
(a) Aggregate Demand
(b) Aggregate Supply
(c) Both (a) and (b)
(d) None of the above
Answer: (c) Both (a) and (b)
33.
In Keynesian viewpoint, the equilibrium level of income and employment in the economy will be established where:
(a) AD > AS
(b) AS > AD
(c) AD = AS
(d) None of these
Answer: (c) AD = AS
34.
According to the saving-investment viewpoint, income employment equilibrium will be determined at a point where:
(a) S > I
(b) I > S
(c) S = I
(d) None of these
Answer: (c) S = I
35.
An increase in aggregate demand of equilibrium level of income and employment causes an increase in:
(a) Employment
(b) Production
(c) Income
(d) All of these
Answer: (d) All of these
36.
Which one is correct?
(a) Y = C + I
(b) Y = 0 = N
(c) C + S = C + I
(d) All of these
Answer: (d) All of these
37.
Keynes theory is associated with :
(a) Effective demand
(b) Propensity to consume
(c) Propensity to save
(d) All of these
Answer: (d) All of these
38.
Keynesian multiplier establishes a relationship between:
(a) Investment and Income
(b) Income and Consumption
(c) Saving and Investment
(d) None of the above
Answer: (a) Investment and Income
39.
Which one is correct?
(a) K = 1MPC
(b) K = 1MPS
(c) K = 11−MPS
(d) K = 11+MPS
Answer: (b) K = 1MPS
40.
Multiplier can be expressed as:
(a) K = ΔSΔI
(b) K = ΔYΔI
(c) K = I – S
(d) None of these
Answer: (b) K = ΔYΔI
41.
Keynes derived Investment Multiplier from Kahn’s :
(a) Income Multiplier
(b) Consumption Multiplier
(c) Employment Multiplier
(d) None of the above
Answer: (c) Employment Multiplier
42.
The value of Keynesian Investment Multiplier depends on:
(a) Income Level
(b) Marginal Productivity of Capital
(c) Marginal Propensity to Consume
(d) Investment Level
Answer: (c) Marginal Propensity to Consume
43.
Which factor affects Keynesian Multiplier?
(a) Marginal Propensity to Save
(b) Marginal Propensity to Consume
(c) Both (a) and (b)
(d) None of the above
Answer: (c) Both (a) and (b)
44.
Which of the following is correct?
(a) MPC and multiplier have a direct relationship
(b) MPS and multiplier have an inverse relationship
(c) Both (a) and (b)
(d) None of the above
Answer: (c) Both (a) and (b)
45.
The value of MPC is:
(a) 1
(b) 0
(c) Greater than 0 but less than 1
(d) ?
Answer: (c) Greater than 0 but less than 1
46.
If MPC = 0.5, then multiplier (K) will be:
(a) 1/2
(b) 1
(c) 2
(d) 0
Answer: (c) 2
47.
If MPC = 0.5 and initial investment is 100 Rs crores, the income generation in the economy will be :
(a) 5 crores Rs
(b) 100 crores Rs
(c) 200 crores Rs
(d) 500 crores Rs
Answer: (c) 200 crores Rs
48.
‘The theory of employment multiplier was propounded by:
(a) Keynes
(b) Kahn
(c) Hansen
(d) Marshall
Answer: (b) Kahn
49.
If income equilibrium level in the economy is determined at the level before full employment, it is known as the state
of:
(a) Deficit Demand
(b) Surplus Demand
(c) Partial Demand
(d) None of these
Answer: (a) Deficit Demand
50.
In Keynesian economics, the state of Deficit Demand is called as:
(a) Full Employment Equilibrium
(b) Under Full Employment Equilibrium
(c) Both (a) and (b)
(d) None of the above
Answer: (b) Under Full Employment Equilibrium
51.
What are the characteristics of Deficit Demand?
(a) Aggregate Demand falls short of Aggregate Demand required at full employment
(b) Aggregate Demand remains short of Aggregate Supply required of full employment level
(c) Both (a) and (b)
(d) None of above
Answer: (c) Both (a) and (b)
52.
Deflationary Gap shows the measurement of:
(a) Deficit Demand
(b) Surplus Demand
(c) Full Employment
(d) None of these
Answer: (a) Deficit Demand
53.
Which one is the reason for appearing Deficit Demand condition?
(a) Fall in the money supply in the country
(b) Fall in investment demand as a result of rising in bank rate
(c) Fall in disposable income and consumer demand due to increase in taxes
(d) All the above
Answer: (d) All the above
54.
Which of the following is true?
(a) Employment level declines due to decrease in demand
(b) Price level falls due to deficient demand in the country
(c) Production level falls deficient demand
(d) All the above
Answer: (d) All the above
55.
The ‘difference between the Aggregate Demand at above full employment and Aggregate Demand at full
employment is known as:
(a) Inflationary Gap
(b) Deflationary Gap
(c) Both (a) and (b)
(d) None of the above
Answer: (a) Inflationary Gap
56.
Which of the following is a reason for surplus demand?
(a) Increase in Public Expenditure
(b) Increase in Money Supply
(c) Fall in Taxes
(d) All the above
Answer: (d) All the above
57.
In the situation of the deflationary gap:
(a) Demand increases rapidly
(b) Supply increase rapidly
(c) Both demand and supply are equal
(d) All of these
Answer: (d) All of these
58.
Which of the following causes the trade cycle?
(a) Deflationary Conditions
(b) Inflationary Conditions
(c) Both (a) and (b)
(d) None of these
Answer: (c) Both (a) and (b)
59.
Which one is the corrective measure for Deficient Demand?
(a) Fiscal Measures
(b) Monetary Measures
(c) Both (a) & (b)
(d) None of the above
Answer: (c) Both (a) & (b)
60.
Which measure is included in Fiscal Measures?
(a) Public Expenditure
(b) Taxation
(c) Public Debt
(d) All of these
Answer: (d) All of these
61.
Which fiscal measure should be adopted for correcting Deficient Demand?
(a) Government should spend more on public works
(b) Taxation should be reduced
(c) Pubic debt should be reduced
(d) All the above
Answer: (d) All the above
62.
With which component of Monetary Policy, Central Bank tries to attain economic stability in the country?
(a) Supply of Money
(b) Interest Rate
(c) Availability of Money
(d) All of these
Answer: (d) All of these
63.
Which method Central Bank adopts for controlling quantitative credit?
(a) Bank Rate
(b) Open Market Operations
(c) Change in Cash Reserve Ratio
(d) All the above
Answer: (d) All the above
64.
Which is a qualitative method of controlling credit?
(a) Change in Margin Requirements of Loanee
(b) Credit Rationing
(c) Direct Action
(d) All of these
Answer: (d) All of these
65.
Which monetary measure may be adopted to correct Deficient Demand?
(a) Reduction in Bank Rate
(b) Buying Securities in Open Markey
(c) Reducing Cash Reserve Ratio
(d) All the above
Answer: (d) All the above
66.
Which fiscal measure is to be adopted in correcting the Inflationary Gap?
(a) Reduction in Public Expenditure
(b) Increase in taxes
(c) Increase in Public debt
(d) All of these
Answer: (d) All of these
67.
Which monetary measure is to be adopted in correcting Inflationary
(a) Increase in Bank Rate
(b) Selling of Securities in Open Market
(c) Increase in Cash Reserve Ratio
(d) All the above
Answer: (d) All the above
68.
Income and employment are determined by:
(a) Total demand
(b) Total supply
(c) Total demand and total supply both
(d) By market demand
Answer: (c) Total demand and total supply both
69.
The relation between consumption and savings are:
(a) Inverse
(b) Direct
(c) Inverse and direct both
(d) Neither inverse nor direct.
Answer: (a) Inverse
70.
When an economy they’re to save all its extra income then investment calculation will be:
(a) 1
(b) Uncertain
(c) 0
(d) Infinite
Answer: (a) 1
71.
“Supply creates its own demand”. This statement was given by the economist:
(a) Keynes
(b) Pigou
(c) J. B.Say
(d) Adam Smith
Answer: (c) J. B.Say
72.
The classical theory is based on the assumption of:
(a) Say’s the law of market
(b) Flexibility in wage rates
(c) Flexibility in interest rate
(d) All of the above
Answer: (d) All of the above.

Fill in the blanks:

1.
The multiplier is the ratio between the change in income and change in _________

Answer: investment
2.
There is a/an _______ relation between multiplier and MPC.
Answer: direct
3.
Deficient demand refers to the situation when Aggregate Demand _______ Aggregate Supply.
Answer: short
4.
Income tax is a _______ tax.

Answer: direct

5.
The price will be _______ an the inflationary gap.

Answer: increased

6.
In a situation of inflationary gap, the economy faces a situation of _____ output.

Answer: higher

7.
The deflationary gap is a measure of _______ demand.

Answer: excess
8.
Excess demand refers to the situation when AD ______ AS.
Answer: >
9.
______ policy is related to revenue and expenditure of the government.
Answer: fiscal
10.
Bank rate is a ________ instrument of monetary policy.
Answer: quantitative
11.
Tax, public borrowings are the main components of ________ policy.
Answer: fiscal
12.
Bank rate and open market operation are the main components of _______ policy.
Answer: monetary
13.
Fiscal policy has a ______ bearing on all the sectors of the economy.
Answer: direct
14.
Sale tax is an example of ________ tax.
Answer: Indirect
15.
The _______ Propensity to Consume is the proportion of the income, which is spent on consumption.
Answer: Average
16.
MPC of the lower-income group is _______ than the higher income group.
Answer: higher
17.
MPC is always _________
Answer: positive
18.
MPC lies between ______ and ________
Answer: zero, one
19.
________ refers to the highest rate of return over cost expected from a marginal or additional unit of a capital asset.
Answer: Marginal efficiency of capital
20.
Deflationary gap is the measurement of _________ demand.
Answer: Deficit
21.
Deficit demand indicates _________ gap.
Answer: Deflationary gap
22.
In case of excess demand bank rate _________
Answer: Increase
23.
Multiplier can also _________ in opposite direction.
Answer: Work
24.
The point at which aggregate demand and aggregate supply are equal is known as __________
Answer: Effective demand
25.
Unemployment is the result of ________
Answer: Deficit
26.
Propensity to consume shows relation between _________ and distributed income.
Answer: Consumption

State true or false:

1.
Consumption is the complement of saving.

Answer: True
2.
Full employment means the absence of involuntary unemployment.
Answer: True
3.
MPC can be negative.
Answer: False
4.
MPC of the rich class is higher.
Answer: False
5.
MPC can be greater than one under abnormal conditions.
Answer: True
6.
According to Keynes, “Unemployment is the cause of AD < AS.”
Answer: True
7.
There is an indirect relationship between multiplier and MPC.
Answer: False
8.
With the increase in investment, the multiplier increases income many times more. It is called backward action of the
multiplier.
Answer: False
9.
The value of K is in between 1 and ∝.
Answer: True
10.
When MPC is zero multipliers is 1.
Answer: True
11.
Consumption by one person becomes the income of the other.
Answer: True
12.
The deflationary gap is the shortfall in AD from the level required to maintain full employment equilibrium in the
economy.
Answer: True
13.
Corporation tax is an indirect tax.
Answer: False
14.
Monetary policy is related to the revenue and expenditure policy of the government.
Answer: False
15.
When there is excess demand, the rate of taxation is to be reduced.
Answer: False
16.
When there is deficient demand, public expenditure is to be generally expanded.
Answer: True
17.
Full employment does not mean zero unemployment.
Answer: True
18.
An increase in the interest rate in the future will reduce the savings.
Answer: False
19.
Consumption expenditure does not increase in the same proportion as income increases.
Answer: True
20.
Theories of employment were propounded by Marshall.
Answer: False
21.
Unemployment is the result of deficit demand.
Answer: False
22.
Keynes’s theory also applies to underdeveloped countries.
Answer: False
23.
Keynes’s theory is based on the concept of full employment.
Answer: True
Match the following:

Question 1.

‘A’ ‘B’
(a) Directly related to each
1. Meaning of market demand
other
2. Income and Savings both (b) J. B. Say
3. Independent jurisdiction (c) Income is inelastic
4. Induced investment (d) By the demand of one good
5. Supply creates its own demand (e) Is ruled by
6. Effective demand = Total demand and Total supply (f) Income is elastic.
Answer:
‘A’ ‘B’
1. Meaning of market demand (d) By the demand of one good
2. Income and Savings both (a) Directly related to each other
3. Independent jurisdiction (c) Income is inelastic
4. Induced investment (f) Income is elastic.
5. Supply creates its own demand (b) J. B. Say
6. Effective demand = Total demand and Total supply (e) Is ruled by
Question 2.

Column-I Column-II
1. Components of Aggregate Demand (A) C + S
2. Components of Aggregate Supply (B) Rate of interest and MEC
3. Determinants of investment (C) AD = AS
4. Equilibrium level of income (D) C + I + G + ( X – M)
5. Investment multiplier (E) Taxes, deficit financing
6. MPC = 0.6, MPS = ? (F) 0.4
7. APC = 0.9, APS = ? (G) 0.1
8. Measures of fiscal policy (H) k = ΔYΔI
9. Measures of monetary policy (I) Bank rate, CRR
10. Quantitative Instrument (J) Rationing
11. Qualitative Instrument (K) Open market operation
Answer:

Column-I Column-II
1. Components of Aggregate Demand (D) C + I + G + ( X – M)
2. Components of Aggregate Supply (A) C + S
3. Determinants of investment (B) Rate of interest and MEC
4. Equilibrium level of income (C) AD = AS
5. Investment multiplier (H) k = ΔYΔI
6. MPC = 0.6, MPS = ? (F) 0.4
7. APC = 0.9, APS = ? (G) 0.1
8. Measures of fiscal policy (E) Taxes, deficit financing
9. Measures of monetary policy (I) Bank rate, CRR
10. Quantitative Instrument (K) Open market operation
11. Qualitative Instrument (J) Rationing

Chapter 5
Government Budget and the Economy
1.
An annual statement of the estimated receipts and expenditure of the government over the fiscal year is
known as
(A) Budget
(B) Income estimates
(C) Account
(D) Expenditure
Answer: (A) Budget
2.
Which of the following is an example of direct tax?
(A) VAT
(B) Excise duty
(C) Entertainment tax
(D) Wealth tax
Answer: (D) Wealth tax
3.
What is the period of a fiscal year?
(A) 1 April to 31 March
(B) 1 January to 31 December
(C) 1 March to 28 February
(D) None of these
Answer: (A) 1 April to 31 March
4.
When government spends more than it collects by way of revenue, it incurs ______
(A) Budget surplus
(B) Budget deficit
(C) Capital expenditure
(D) Revenue expenditure
Answer: (B) Budget deficit
5.
The fiscal deficit is the difference between the government’s total expenditure and its total receipts excluding ______
(A) Interest
(B) Taxes
(C) Spending
(D) Borrowings
Answer: (D) Borrowings
6.
Which of the following is the component of a budget?
(A) Fiscal budget
(B) Capital budget
(C) Both of these
(D) None of these
Answer: (C) Both of these
7.
What is the annual statement of the government’s fiscal revenue and fiscal expenditure known?
(A) Budget
(B) Fiscal Budget
(C) Capital Budget
(D) All of these
Answer: (B) Fiscal Budget
8.
How many types of revenue receipts are there?
(A) 2
(B) 3
(C) 4
(D) 6
Answer: (A) 2
9.
The amount collected by the government as taxes and duties is known as _______
(A) Capital receipts
(B) Tax revenue receipts
(C) Non-tax revenue receipts
(D) All of these
Answer: (B) Tax revenue receipts
10.
The amount collected by the government in the form of interest, fees, and dividends is known as ________
(A) Tax-revenue receipts
(B) Capital receipts
(C) Non-tax revenue receipts
(D) None of these
Answer: (C) Non-tax revenue receipts
11.
Borrowing in the government budget is:
(A) Revenue deficit
(B) Fiscal deficit
(C) Primary deficit
(D) Deficit in taxes
Answer: (B) Fiscal deficit
12.
The non-tax revenue in the following is:
(A) Export duty
(B) Import duty
(C) Dividends
(D) Excise
Answer: (C) Dividends
13.
The primary deficit in a government budget will be zero, when _______
(A) Revenue deficit is zero
(B) Net interest payments are zero
(C) Fiscal deficit is zero
(D) Fiscal deficit is equal to interest payment
Answer: (D) Fiscal deficit is equal to interest payment
14.
Direct tax is called direct because it is collected directly from:
(A) The producers on goods produced
(B) The sellers on goods sold
(C) The buyers of goods
(D) The income earners
Answer: (D) The income earners
15.
Financial Year in India is:
(a) April I to March 31
(b) January 1 to December 31
(c) October 1 to September 30
(d) None of the above
Answer: (a) April I to March 31
16.
Which objectives government attempts to obtain by Budget
(a) To Promote Economic Development
(b) Balanced Regional Development
(c) Redistribution of Income and Wealth
(d) All the above
Answer: (d) All the above
17.
Which is a component of Budget?
(a) Budget Receipts
(b) Budget Expenditure
(c) Both (a) and (b)
(d) None of the above
Answer: (c) Both (a) and (b)
18.
Which is a component of the Budget Receipt?
(a) Revenue Receipt
(b) Capital Receipt
(c) Both (a) and (b)
(d) None of the above
Answer: (c) Both (a) and (b)
19.
Tax revenue of the Government includes :
(a) Income Tax
(b) Corporate Tax
(c) Excise Duty
(d) All of these
Answer: (d) All of these
20.
Which is included in the Direct Tax?
(a) Income Tax
(b) Gift Tax
(c) Both (a) and (b)
(d) Excise Duty
Answer: (c) Both (a) and (b)
21.
Which is included in Indirect Tax?
(a) Excise Duty
(b) Sales Tax
(c) Both (a) and (b)
(d) Wealth Tax
Answer: (c) Both (a) and (b)
22.
The expenditures which do not create assets for the government is called :
(a) Revenue Expenditure
(b) Capital Expenditure
(c) Both (a) and (b)
(d) None of the above
Answer: (a) Revenue Expenditure
23.
Direct tax is :
(a) Income Tax
(b) Gift Tax
(c) Both (a) and (b)
(d) None of these
Answer: (c) Both (a) and (b)
24.
In India, one rupee note is issued by:
(a) Reserve Bank of India
(b) Finance Ministry of Government of India
(c) State Bank of India
(d) None of these
Answer: (b) Finance Ministry of Government of India
25.
Capital budget consist of:
(a) Revenue Receipts and Revenue Expenditure
(b) Capital Receipts and Capital Expenditure
(c) Direct and Indirect Tax
(d) None of these
Answer: (b) Capital Receipts and Capital Expenditure
26.
Which of the following is an indirect tax?
(a) Excise Duty
(b) Sales Tax
(c) Custom Duty
(d) All of these
Answer: (d) All of these
27.
Which type of expenditure is made in bridge construction?
(a) Capital Expenditure
(b) Revenue Expenditure
(c) Both (a) and (b)
(d) None of the above
Answer: (a) Capital Expenditure
28.
Which of the following budget is suitable for developing economies?
(a) Deficit Budget
(b) Balanced Budget
(c) Surplus Budget
(d) None of these
Answer: (a) Deficit Budget
29.
What is the duration of a Budget?
(a) Annual
(b) Two Years
(c) Five Years
(d) Ten Years
Answer: (a) Annual
30.
Which of the following is included in fiscal policy?
(a) Public Expenditure
(b) Tax
(c) Public Debt
(d) All of these
Answer: (d) All of these
31.
Which of the following is the capital expenditure of the government?
(a) Interest Payment
(b) Purchase of House
(c) Expenses on Machinery
(d) All of the above
Answer: (a) Interest Payment
32.
The budget may include:
(a) Revenue Deficit
(b) Fiscal Deficit
(c) Primary Deficit
(d) All of these
Answer: (d) All of these
33.
Which of the following statement is true?
(a) Fiscal deficit is the difference between total expenditure and total receipts
(b) Primary deficit is the difference between total receipt and interest payments
(c) Fiscal deficit is the sum of primary deficit and interest payment
(d) All of these
Answer: (c) Fiscal deficit is the sum of primary deficit and interest payment
34.
Budget:
(a) is a description of income-expenditure of government
(b) is a document of the economic policy of the government
(c) is a description of non-programs of the government
(d) All of these
Answer: (d) All of these
35.
In an unbalanced budget:
(a) Income is greater than expenditure
(b) Expenditure is higher relative to income
(c) Deficit is covered by loans or printing of notes
(d) Only (b) and (c)
Answer: (d) Only (b) and (c)
36.
Which is included in indirect tax?
(a) Income tax
(b) Wealth tax
(c) Excise Duty
(d) Gift tax
Answer: (c) Excise Duty
37.
Which one of the following is a pair of direct tax?
(a) Excise duty and Wealth Tax
(b) Service Tax and Income Tax
(c) Excise Duty and Service Tax
(d) Wealth Tax and Income Tax
Answer: (d) Wealth Tax and Income Tax
38.
Which of the following is not a revenue receipt?
(a) Recovery of Loans
(b) Foreign Grants
(c) Profits of Public Enterprise
(d) Wealth Tax
Answer: (a) Recovery of Loans
39.
Which of the following is a correct measure of the primary deficit?
(a) Fiscal deficit minus revenue deficit
(b) Revenue deficit minus interest payments
(c) Fiscal deficit minus interest payments
(d) Capital expenditure minus revenue expenditure
Answer: (c) Fiscal deficit minus interest payments
40.
The duration of the Government budget is:
(a) 5 years
(b) 2 years
(c) 1 year
(d) 10 years
Answer: (c) 1 year
41.
Budget is presented in the Parliament by:
(a) Prime Minister
(b) Home Minister
(c) Finance Minister
(d) Defence Minister
Answer: (c) Finance Minister
42.
Budget speech in Lok Sabha is given by:
(a) President
(b) Prime Minister
(c) Finance Minister
(d) Home Minister
Answer: (c) Finance Minister
43.
Professional tax is imposed by:
(a) Central Government
(b) State Government
(c) Municipal Corporation
(d) Gram Panchayat
Answer: (b) State Government
44.
From the following which is included in the direct tax:
(a) Income Tax
(b) Gift Tax
(c) Both (a) and (b)
(d) Excise Tax
Answer: (c) Both (a) and (b)
45.
Who issues 1 rupee note in India:
(a) Reserve Bank of India
(b) Finance Ministry of India
(c) State Bank of India
(d) None of these
Answer: (b) Finance Ministry of India

Fill in the blanks:

1.
A deficit budget is that in which total expenditure is ________ total receipts.

Answer: greater than

2.
Revenue deficit is that in which revenue receipts are ________ revenue expenditure.
Answer: less than
3.
_______ tax is that in which the final burden of the tax fall on the person who pays it.
Answer: Direct
4.
Tax is a legally compulsory payment imposed by the _______ on income and property of persons and companies.
Answer: Government
5.
Recovery of loan is treated as capital receipt because it leads to __________
Answer: reduction of assets
6.
Primary Deficit = Fiscal Deficit minus __________
Answer: Interest on Debt
7.
________ are levied on goods and services.
Answer: Indirect taxes
8.
_________ does not have any impact on the asset-liability status of the government.
Answer: Revenue budget
9.
The government can influence the allocation of resources through the implementation of appropriate _________
Answer: fiscal policy
10.
__________ is a document containing income and expenditure of the government.
Answer: Budget
11.
Income tax is _________ tax.
Answer: Direct
12.
_________ tax is levied on the value of the goods.
Answer: Advalorem
13.
Service tax is levied by the ________
Answer: Central
14.
_________ budget is considered good for the country.
Answer: Deficit
15.
Finance bill contains _________ proposals.
Answer: Tax
16.
Government budget is presented on the last day of _________
Answer: February

State true or false :

1.
Public goods are collectively consumed.

Answer: True
2.
There is a feasible way of excluding anyone from enjoying the benefits of public goods.
Answer: False
3.
The three functions of allocation, redistribution, and stabilization are operated through the expenditure and receipts
of the government.
Answer: True
4.
The deficit decreases in a recession and increases in a boom, even without any change in fiscal policy.
Answer: False
5.
Indirect taxes are not convenient to realise.
Answer: False
6.
Payment of salaries to the government employees is a capital payment.
Answer: False
7.
Expenditure made on the establishment of the metro rail line in Delhi is a capital expenditure.
Answer: True
8.
Public borrowing is a capital receipt.
Answer: True
9.
Recovery of loan is a revenue receipt.
Answer: False
10.
Service tax is a direct tax.
Answer: False
11.
Grants by the government are treated as revenue expenditure.
Answer: True
12.
Excess of capital expenditure over capital receipt is called revenue deficit.
Answer: False
13.
A deficit budget is not considered a good budget.
Answer: False
14.
Electricity tax is levied by the State Government.
Answer: True
15.
The budget speech is given by the Finance Minister.
Answer: True
16.
Central excise duty is a direct tax.
Answer: False
17.
The interest payment is a planned item.
Answer: False
18.
During deflation surplus budget is made.
Answer: True
19.
The rail budget is generally not included in the annual budget.
Answer: True

Match the following

Question 1.

‘A’ ‘B’
1. Income and expenditure of the government (a) 31 March
2. First of all finance bill is presented in the (b) Budget
3. Budget is presented on (c) Details about income and expenditure
4. Aim or Objective of the budget (d) Loksabha
5. Main feature of the budget (e) Economic development.
Answer:
‘A’ ‘B’
1. Income and expenditure of the government (b) Budget
2. First of all finance bill is presented in the (d) Loksabha
3. Budget is presented on (a) 31 March
4. Aim or Objective of the budget (e) Economic development.
5. Main feature of the budget (c) Details about income and expenditure
Question 2.

Column-I Column-II
1. Surplus budget (A) Revenue receipts > Revenue expenditure
2. Deficit budget (B) Fiscal deficit – interest payments
3. Revenue deficit (C) Govt. Expenditure < Govt. Receipts
4. Fiscal deficit (D) Income tax, corporate profit tax
5. Primary deficit (E) Expenditure on roads and health
6. Examples of direct tax (F) Govt. Expenditure > Govt. Receipts
7. Examples of indirect tax (G) Loans granted to state governments
8. Examples of development expenditure (H) Total expenditure > total receipts
9. Examples of non-development expenditure (I) Sale tax, excise duty
10. Examples of capital expenditure (J) Sales tax, Income tax
11. Sources of tax revenue (K) Expenditure on administration and defence
Answer:
Column-I Column-II
1. Surplus budget (C) Govt. Expenditure < Govt. Receipts
2. Deficit budget (F) Govt. Expenditure > Govt. Receipts
3. Revenue deficit (A) Revenue receipts > Revenue expenditure
4. Fiscal deficit (H) Total expenditure > total receipts
5. Primary deficit (B) Fiscal deficit – interest payments
6. Examples of direct tax (D) Income tax, corporate profit tax
7. Examples of indirect tax (I) Sale tax, excise duty
 8. Examples of development expenditure (E) Expenditure on roads and health
9. Examples of non-development expenditure (K) Expenditure on administration and defence
10. Examples of capital expenditure (G) Loans granted to state governments
11. Sources of tax revenue (J) Sales tax, Income tax

Chapter 6
Open Economy Macroeconomics
1.
The price of one currency in terms of another is known as _________
(A) Foreign exchange rate
(B) Trade rate
(C) Interest rate
(D) Balance of Payment

Answer: (A) Foreign exchange rate

2.
The market where the national currencies are traded for one another is known as ________
(A) Domestic exchange market
(B) Foreign exchange market
(C) Bazaar
(D) Shop
Answer: (B) Foreign exchange market
3.
Increase in the value of foreign commodities is known as _________
(A) Revaluation
(B) Devaluation
(C) Inflation
(D) None of these
Answer: (B) Devaluation
4.
Decrease in the value the foreign commodities is known as _________
(A) Revaluation
(B) Devaluation
(C) Deflation
(D) All of these
Answer: (A) Revaluation
5.
What is the cause of the devaluation of any country’s currency?
(A) Increase in the domestic inflation rate
(B) Domestic real interest rates are less than foreign interest rates
(C) Much increase in the income
(D) All of these
Answer: (D) All of these
6.
The operation of daily nature in the foreign exchange market is known as ________
(A) Spot market
(B) Forward market
(C) Domestic market
(D) International market
Answer: (A) Spot market
7.
The operation of future delivery in the foreign exchange market is known as ________
(A) Spot market
(B) Current market
(C) Forward market
(D) Domestic market
Answer: (C) Forward market
8.
Hybrid in management of fixed and flexible exchange rate is known as ________
(A) Managed to float
(B) Crawling Peg
(C) Wider Bands
(D) None of these
Answer: (A) Managed floating
9.
When was the gold standard abandoned?
(A) 1930’s
(B) 1920’s
(C) 1940’s
(D) 1950’s
Answer: (B) 1920’s
10.
Trade of visible items between the countries is known as ________
(A) Balance of Payment
(B) Balance of Trade
(C) Deficit Balance
(D) All of these
Answer: (B) Balance of Trade
11.
When the import and export of visible items are equal, the situation is known as _______
(A) Balance of Trade
(B) Balance of Payment
(C) Trade Surplus
(D) Trade Deficit
Answer: (A) Balance of Trade
12.
When there is a favourable balance of trade?
(A) X > M
(B) X = M
(C) X < M
(D) None of these
Answer: (A) X > M
13.
When there is unfavourable balance of trade?
(A) X > M
(B) X = M
(C) X < M
(D) None of these
Answer: (C) X < M
14.
The trade of visible and invisible items is known as _________
(A) Balance of Payments
(B) Balance of Trade
(C) Deficit of interest
(D) Profit
Answer: (A) Balance of Payments
15.
Other things remaining unchanged, when in a country the price of foreign currency rises, national income is:
(A) Likely to rise
(B) Likely to fall
(C) Likely to rise and fall both
(D) Not affected
Answer: (A) Likely to rise
16.
Other things remaining the same, when in a country the market price of foreign currency falls, national income is
likely:
(A) To rise
(B) To fall
(C) To rise or to fall
(D) To remain affected
Answer: (B) To fall
17.
Which one is the king of the exchange rate?
(a) Fixed Exchange Rate
(b) Flexible Exchange Rate
(c) Both (a) and (b)
(d) None of the above
Answer: (c) Both (a) and (b)
18.
Which of the following is true?
(a) Fixed exchange rate is determined by the government
(b) Flexible exchange rate is determined by market forces (demand and supply of foreign exchange)
(c) Both (a) and (b)
(d) None of the above
Answer: (c) Both (a) and (b)
19.
Which one is a kind of fixed exchange rate?
(a) Gold Standard System of Exchange Rate
(b) Bretton Woods System of Exchange Rate
(c) Both (a) and (b)
(d) None of the above
Answer: (c) Both (a) and (b)
20.
Which one is a merit of the fixed exchange rate?
(a) Promotes Foreign Trade
(b) Induces Foreign Capital
(c) Increases Capital Formation
(d) All the above
Answer: (d) All the above
21.
Which one is a demerit of the fixed exchange rate?
(a) Ignores National Interests
(b) Restricted Movement of Capital
(c) Sudden Fluctuations in Exchange Rates
(d) All the above
Answer: (d) All the above
22.
Which one is a merit of the flexible exchange rate?
(a) Simple System
(b) Continuous Adjustments
(c) Improves Balance of Payments
(d) All the above
Answer: (d) All the above
23.
Which one is a demerit of the flexible exchange rate?
(a) Bad Results of Low Rate
(b) Uncertainty
(c) Instability in Foreign Exchange
(d) All the above
Answer: (d) All the above
24.
Which one is a source of the demand for foreign exchange?
(a) Imports of Goods and Services from Abroad
(b) Investment in Foreign Nations
(c) Gift Scheme to Foreign Nations
(d) All the above
Answer: (d) All the above
25.
Foreign exchange is determined by:
(a) Demand for foreign currency
(b) Supply of foreign currency
(c) Demand and supply in the foreign exchange market
(d) None of the above
Answer: (c) Demand and supply in a foreign exchange market
26.
The forms of foreign exchange market is/are:
(a) Spot market
(b) Forward market
(c) Both (a) and (b)
(d) None of these
Answer: (c) Both (a) and (b)
27.
The foreign exchange rate is determined by:
(a) Government
(b) Bargaining
(c) World Bank
(d) Demand and Supply forces
Answer: (d) Demand and Supply forces
28.
By exchange rate we mean:
(a) How much local currency we have to pay for a foreign currency
(b) How much of a foreign currency we have to pay for another foreign currency
(c) The rate at which foreign currency is bought and sold
(d) All of these
Answer: (d) All of these
29.
Balance of Trade =?
(a) Export of Visible Items – Imports of Visible Items
(b) Export of both Visible and Invisible Items – Import of both Visible and Invisible Items
(c) Import of Visible Items – Export of Visible Items
(d) None of the above
Answer: (a) Export of Visible Items – Imports of Visible Items
30.
Which items are included in the Balance of Payments?
(a) Visible Items
(b) Invisible Items
(c) Capital Transfers
(d) All the above
Answer: (d) All the above
31.
Which one is the visible item of Balance of Payments?
(a) Machine
(b) Cloth
(c) Cement
(d) All of these
Answer: (d) All of these
32.
Which one is the invisible item of Balance of Payment?
(a) Banking
(b) Shipping
(c) Communication
(d) All of these
Answer: (d) All of these
33.
Which one is the feature of Balance of Payment?
(a) Systematic Accounts
(b) Fixed Time Period
(c) Comprehensiveness
(d) All the above
Answer: (d) All the above
34.
Which account is included in the composition of the Balance of Payments?
(a) Current Account
(b) Capital Account
(c) Both (a) and (b)
(d) None of the above
Answer: (c) Both (a) and (b)
35.
Which one is the item of the Current Account?
(a) Import of Visible Items
(b) Expenses of Tourists
(c) Exports of Visible Items
(d) All the above
Answer: (d) All the above
36.
Which one is the item of Capital Account?
(a) Government Transaction
(b) Priva Transactions
(c) Foreign Direct Investment
(d) All the above
Answer: (d) All the above
37.
The component(s) of Balance of Payment is/are:
(a) Current Account
(b) Capital Account
(c) Both (a) and (b)
(d) None of these
Answer: (c) Both (a) and (b)
38.
Which items are included in the balance of trade?
(a) Invisible Item
(b) Capital Transfer
(c) Visible Item
(d) All of these
Answer: (c) Visible Item
39.
Balance of Trade means:
(a) Capital Transaction
(b) Import and export of goods
(c) Total debit and credit
(d) All the above
Answer: (b) Import and export of goods
40.
The reason for the imbalance in the balance of payment is:
(a) Natural Reasons
(b) Economic Reasons
(c) Political Reasons
(d) All of these
Answer: (d) All of these
41.
Structure of balance of payment includes which account:
(a) Current account
(b) Capital account
(c) Both (a) and (b)
(d) None of these.
Answer: (c) Both (a) and (b)
42.
Balance of trade means:
(a) Capital transactions
(b)Import and export of goods,
(c) Total credit and debit
(d) All of the above
Answer: (b)Import and export of goods,
43.
Measures to improve the adverse balance of payment includes:
(a) Currency devaluation
(b) Import substitution
(c) Exchange control
(d) All of the above
Answer: (d) All of the above.
44.
Foreign Exchange Rate is determined by:
(a) Demand for foreign currency
(b) Supply of foreign currency
(c) Demand and supply in the foreign exchange market
(d) None of these
Answer: (c) Demand and supply in the foreign exchange market
45.
Types of Foreign Exchange Market are:
(a) Spot market
(b) Forward market
(c) Both (a) and (b)
(d) None of these
Answer: (c) Both (a) and (b)

Fill in the blanks:

1.
________ refers to the rate at which one currency is exchanged for the other.

Answer: Foreign exchange rate

2.
_______ rate of exchange refers to the rate of exchange as determined by the government.
Answer: Fixed
3.
_______ market deals with current sales and purchases of foreign exchange.
Answer: Foreign Exchange
4.
_______ market deals with such sale and purchase of foreign exchange, which are contracted today but are
implemented sometimes in the future.
Answer: Forward
5.
Balance of ________ is a summary statement of all economic transactions between a country and the rest of the
world.
Answer: Payment
6.
The balance of _______ is the difference between visible exports and visible imports.
Answer: Trade
7.
Balance of Payment is always _________
Answer: Positive
8.
Balance of Payment is a ______ concept as compared to the balance of trade.
Answer: broader
9.
If exports exceed imports, then BoP is _________
Answer: favourable
10.
Balance of trade includes only ________ items.
Answer: visible
11.
Bretton woods system is also known as ________ border system.
Answer: Adaptable
12.
There is ________ relation between foreign exchange rate and the supply of foreign exchange.
Answer: Direct

13.
By devaluation, the value of currency ________

Answer: Reduces
14.
________ items are included in the balance of trade.
Answer: Visible
15.
Balance of payment always remains ________
Answer: Balanced

16.
The value of the currency of one country with that of the currency of another country is called ________

Answer: Exchange rate

State true or false:

1.
Balance of Payments includes only visible items.

Answer: False
2.
Balance of trade is a part of the Balance of Payments.
Answer: True
3.
The balance of trade is always positive.
Answer: False
4.
The balance of Payments may be positive or negative.
Answer: False
5.
The current account records visible items, invisible items, and unilateral transfers.
Answer: True
6.
Capital account records are such transactions, which cause a change in the asset and liability status of the residents
of a country or of its government.
Answer: True
7.
Exports of tea is an example of visible items.
Answer: True
8.
Banking and insurance are examples of visible items.
Answer: False
9.
Forward market deals with current sales and purchases of foreign exchange.
Answer: False
10.
Demand for foreign exchange also depends upon payments of international loans.
Answer: True
11.
Balance of trade includes both visible and invisible items.
Answer: False
12.
Balance of trade is a part of the Balance of payments.
Answer: True
13.
Devaluation is declared by the government.
Answer: True
14.
The balance of payment is always balanced.
Answer: True
15.
For export promotion, the help of devaluation is taken.
Answer: True
16.
The increasing population in developing countries has a direct impact on economic growth.
Answer: False
17.
Export promotion is one of the ways of correcting the Balance of payments.
Answer: False

Match the following:

Question 1.

‘A’ ‘B’
1. Balance of payments (a) Always favourable
2. Balance of Trade includes (b) Both visible and invisible items
3. India’s Balance of payments (c) Includes only visible items
4. Determination of flexible exchange rate (d) Foreign banks issue letter of credit in large demand over banks of the country
5. In favour of foreign exchange rate (e) Forces of demand and supply in foreign exchange markets.
Answer:
‘A’ ‘B’
1. Balance of payments (b) Both visible and invisible items
2. Balance of Trade includes (c) Includes only visible items
3. India’s Balance of payments (a) Always favourable
4. Determination of flexible exchange rate (e) Forces of demand and supply in foreign exchange markets.
5. In favour of foreign exchange rate (d) Foreign banks issue letter of credit in large demand over banks of the country

Question 2.
 Column-I Column-II
1. Spot market (A) Risk management
2. Forward market (B) Accommodating items
3. Hedging (C) Deals with current transactions
4. Above the line items (D) Autonomous items
5. Below the line items (E) Deals with future transactions
Answer:

Column-I Column-II
1. Spot market (C) Deals with current transactions
2. Forward market (E) Deals with future transactions
3. Hedging (A) Risk management
4. Above the line items (D) Autonomous items
5. Below the line items (B) Accommodating items

:
 SKV VIDHYAASHRAM SENIOR SECONDARY SCHOOL

Grade/Section: COMMERCE/ XII Subject: ECONOMICS (030)

CHAPTER WISE MCQ QUESTION & ANSWERS

PART-B
INDIAN ECONOMIC DEVELOPMENT

Chapter 1
Indian Economy on the Eve of Independence
Question 1.
In how many sectors is the occupational structure of India is divided?
(A) One
(B) Two
(C) Three
(D) Four
Answer

Answer: (C) Three

Question 2.
What is another name for the service sector?
(A) Tertiary
(B) Primary
(C) Secondary
(D) Agriculture

Answer

Answer: (A) Tertiary

Question 3.
What was the nature of the Indian economy on the eve of independence?
(A) Stagnant
(B) Backward
(C) Underdeveloped
(D) All of these

Answer

Answer: (D) All of these

Question 4.
What was the life expectancy at birth in India on the eve of Independence?
(A) 44 years
(B) 50 years
(C) 60 years
(D) All of these

Answer

Answer: (A) 44 years

Question 5.
What was the growth rate of per capita income in India on the eve of Independence?
(A) 0.9%
(B) 0.5%
(C) 1.2%
(D) 3%

Answer

Answer: (B) 0.5%

Question 6.
Which of the following activities is included in the primary sector?
(A) Agriculture
(B) Services
(C) Industries
(D) All of these

Answer

Answer: (A) Agriculture

Question 7.
In which of the following sectors is manufacturing activity included?
(A) Primary
(B) Tertiary
(C) Secondary
(D) All of these
Answer

Answer: (C) Secondary

Question 8.
Where was the first iron and steel company established?
(A) Kolkata
(B) Jamshedpur
(C) Patna
(D) Ranchi

Answer

Answer: (B) Jamshedpur

Question 9.
What is the tax or duty on imports called?
(A) Tariff
(B) Quota
(C) Export
(D) None of these

Answer

Answer: (A) Tariff

Question 10.
Which of the following was the major occupation on the eve of independence?
(A) Industry
(B) Services
(C) Agriculture
(D) None of these

Answer

Answer: (C) Agriculture

II. Fill in the blanks with the correct answer.

Question 1.
The country’s growth of aggregate real output was less than ______ during the first half of the twentieth
century.

Answer

Answer: two percent

Question 2.
The Indian economy was a/an _______ economy at the time of independence.

Answer

Answer: agrarian

Question 3.
______ of agriculture increased the burden of revenue on farmers.

Answer

Answer: Commercialisation

Question 4.
The distribution of the working population in different sectors of the economy offers a glimpse of ______
structure.

Answer

Answer: occupational

Question 5.
The second stage of demographic transition began after ________ in India.

Answer

Answer: 1921
Question 6.
Indian economy served as a source of _______ for the British industry and a market for its finished goods.

Answer

Answer: raw material

Question 7.
______ were developed by the British raj as a means to enlarge the size of the market for the British
goods.

Answer

Answer: Railways

Question 8.
The British introduced the railways in India in ________

Answer

Answer: 1850

Question 9.
The ________ sector accounted for 17.2 percent of the working population on the eve of Independence.

Answer

Answer: tertiary/service

Question 10.
India’s first official census was undertaken in _________

Answer

Answer: 1881
III. State whether the following statements are true or false.

Question 1.
India was a prosperous and wealthy economy prior to the advent of British rule.

Answer

Answer: True

Question 2.
The colonial rule destroyed India’s traditional handicraft industry.

Answer

Answer: True

Question 3.
The economic policies pursued by the colonial government in India were concerned more with the
protection and promotion of the economic interests of India.

Answer

Answer: False

Question 4.
India was reduced to an importer of primary products.

Answer

Answer: False

Question 5.
Land settlement introduced by the colonial government resulted in stagnation in the agricultural sector.

Answer

Answer: True
Question 6.
The contribution of the new industrial sector to the Gross Domestic Product (GDP) expanded significantly
during British rule.

Answer

Answer: False

Question 7.
The secondary sector accounted for only 10.1 percent of the working population on the eve of
independence.

Answer

Answer: True

Question 8.
British colonial rule positively affected the structure, composition, and volume of India’s foreign trade.

Answer

Answer: False

Question 9.
Before 1921, India was in the second stage of demographic transition.

Answer

Answer: False

Question 10.
The aim of developing postal and telegraph was to enhance the efficiency of British administration.

Answer

Answer: True
IV. Match the following.

Question 1.

Column-I Column-II
1. Primary sector (A) Manufacturing sector
2. Secondary sector (B) Service sector
3. Tertiary sector (C) Agriculture sector
4. Introduction of Railway in India (D) 1921
5. First official Census in India (E) 1820
6. Year of Great Divide (F) 1881
Answer
Answer:

Column-I Column-II
1. Primary sector (C) Agriculture sector
2. Secondary sector (A) Manufacturing sector
3. Tertiary sector (B) Service sector
4. Introduction of Railway in India (E) 1820
5. First official Census in India (F) 1881
6. Year of Great Divide (D) 1921

Multiple Choice Questions

1. The branches of the subject Economics is
a) Wealth and welfare
b) production and consumption
c) Demand and supply
d) micro and macro

2. Who coined the word ‘Macro’?

a) Adam Smith
b) J M Keynes
c) Ragnar Frisch
d) Karl Marx

3. Who is regarded as Father of Modern Macro Economics?

a) Adam Smith
b) J M Keynes
c) Ragnar Frisch
d) Karl Marx
4. Identify the other name for Macro Economics.

a) Price Theory
b) Income Theory
c) Market Theory
d) Micro Theory

5. Macro economics is a study of ___________________.

a) individuals
b) firms
c) a nation
d) aggregates

6. Indicate the contribution of J M Keynes to economics.

a) Wealth of Nations
b) General Theory
c) Capital
d) Public Finance

7. A steady increase in general price level is termed as_____________.

a) wholesale price index

b) Business Cycle
c) Inflation
d) National Income

8. Identify the necessity of Economic policies.

a) to solve the basic problems

b) to overcome the obstacles
c) to achieve growth
d) all the above

9. Indicate the fundamental economic activities of an economy.

a) Production and Distribution
b) Production and Exchange
c) Production and Consumption
d) Production and Marketing

10. An economy consists of

a) consumption sector
b) Production sector
c) Government sector
d) All the above

11. Identify the economic system where only private ownership of production exists.
a) Capitalistic Economy
b) Socialistic Economy
c) Globalisic Economy
d) Mixed Economy

12. Economic system representing equality in distribution is _________.

a) Capitalism
b) Globalism
c) Mixedism
d) Socialism

13. Who is referred as ‘Father of Capitalism’?

a) Adam Smith
b) Karl Marx
c) Thackeray
d) J M Keynes

14. The country following Capitalism is ________________ .

a) Russia
b) America
c) India
d) China

15. Identify The Father of Socialism.

a) J M Keynes
b) Karl Marx
c) Adam Smith
d) Samuelson

16. An economic system where the economic activities of a nation are done both by the private and public
together is termed as_____________.
a) Capitalistic Economy
b) Socialistic Economy
c) Globalisic Economy
d) Mixed Economy
17. Quantity of a commodity accumulated at a point of time is termed as ____________..
a)production
b) stock
c) variable
d) flow
18. Identify the flow variable.
a) money supply
b) assests
c) income
d) foreign exchange reserves
19. Identify the sectors of a Two Sector Model.
a) Households and Firms
b) Private and Public
c) Internal and External
d) Firms and Government
20. The Circular Flow Model that represents an open Economy.
a) Two Sector Model
b) Three Sector Model
c) Four Sector Model
d) All the above

Answers
1 2 3 4 5 6 7 8 9 10
d c b b d b c d c d
11 12 13 14 15 16 17 18 19 20
a d a b b d b c a c

Chapter 2
Indian Economy 1950-1990
I. Choose the correct alternative.
1.
In which of the following type of economy are resources owned privately and the main objective behind
economic activities is profit-making?
(A) Capitalist
(B) Socialist
(C) Mixed
(D) Global

Answer: (A) Capitalist

2.
Which of the following is the main objective of carrying out various economic activities?
(A) Profit
(B) Public welfare
(C) Competition
(D) Equality
Answer: (B) Public welfare
3.
When was the National Development Council (NDC) set up as an adjunct to the Planning Commission?
(A) 1950
(B) 1969
(C) 1952
(D) 1979
Answer: (C) 1952
4.
Which of the following had been responsible for the heavy burden of the deal and its interest?
(A) BOP deficit
(B) BOP surplus
(C) Equilibrium
(D) None of these
Answer: (A) BOP deficit
5.
Agriculture sector contributed _______ percent to the GDP in 1990-91.
(A) 24.6
(B) 34.9
(C) 40.5
(D) 59.0
Answer: (B) 34.9
6.
What is needed to provide protection against natural calamities like floods, drought, locusts, thunderstorms, etc.?
(A) Multiple cropping
(B) Green revolution
(C) Crop insurance
(D) HYV
Answer: (C) Crop insurance
7.
Which of the following steps promoted the growth of the economy as a whole by stimulating the development of
industrial and tertiary sectors?
(A) Independence
(B) Planning
(C) Colonial rule
(D) Green revolution
Answer: (B) Planning
8.
How many industries have been reserved for the public sector under Industrial Policy Resolution, 1956?
(A) 17
(B) 21
(C) 15
(D) 2
Answer: (A) 17
II. Fill in the blanks with the correct answer.

1.
The percentage of the total population below the poverty line has ________ in India since independence.

Answer: declined
2.
_______ planning includes all spheres of economic and social activities.
Answer: Comprehensive
3.
________ is the Chairman of the Planning Commission.
Answer: Prime Minister
4.
________ economy is the framework of planning in India.
Answer: Mixed
5.
Full employment and equitable distribution of income and wealth are the _______ period objectives of planning in
India.
Answer: long
6.
________ combined with social justice is the principal goal of planning in India.
Answer: Economic growth
7.
Modernisation means adoption of new technology and a change in ________
Answer: social outlook
8.
Planning in India started with a heavy reliance on the _______ sector.
Answer: Public
9.
Land Reforms were introduced to make tillers the owners of the land and bring about _______ in agriculture.
Answer: equity
10.
Import Substitution policy was introduced to protect ________ from foreign competition.
Answer: domestic industries

III. State whether the following statements are true or false.

1.
In a capitalist economy, production takes place for selling the output in the market with profit as the primary
motive.

Answer: True
2.
Pt. Jawaharlal Nehru and many other leaders favoured capitalism for independent India.
Answer: False
3.
President is the Chairman of the Planning Commission.
Answer: False
4.
Pt. Jawaharlal Nehru is regarded as the architect of Indian planning.
Answer: False
5.
Economic growth means equal opportunity to all and the removal of inequality in the distribution of income and
wealth.
Answer: False
6.
Land Reforms were introduced to make tillers the owners of the land.
Answer: True
7.
The green revolution resulted in a marketable surplus of agricultural produce.
Answer: True
8.
The private Sector comprises industries owned, controlled, and managed by the government with the aim of social
welfare.
Answer: False
9.Under Industrial Policy Resolution (IPR), 1956, Category II of the industrial sector includes industries jointly owned
and controlled by the private sector and the state.
Answer: True
10.Quotas are a tax on imported goods while tariffs specify the number of goods which can be imported.
Answer: False
IV. Match the following.

1.

Column-I Column-II
1. Demonetization (A) 1950
2. Planning Commission (B) 2015
3. NITI Aayog (C) P. C. Mahalanobis
4. First five-year plan (D) 2016
5. Architect of Indian Planning (E) 1967-68
6. Green Revolution (F) 1951
7. Economic reforms in India (G) Prime Minister
8. Chairman of Planning Commission (H) 2017
9. New Development Council (I) 1991
10. GST (J) 1952
Answer:
 Column-I Column-II
1. Demonetization (D) 2016
2. Planning Commission (A) 1950
3. NITI Aayog (B) 2015
4. First five-year plan (F) 1951
5. Architect of Indian Planning (C) P. C. Mahalanobis
6. Green Revolution (E) 1967-68
7. Economic reforms in India (I) 1991
8. Chairman of Planning Commission (G) Prime Minister
9. New Development Council (J) 1952
10. GST (H) 2017

Chapter 3
Liberalisation, Privatisation and Globalisation: An Appraisal
I. Choose the correct alternative.

1.
In which year did India adopt the economic reforms?
(A) 1991
(B) 1993
(C) 1998
(D) 2001

Answer: (A) 1991

2.
Why there was a need for economic reforms in India?
(A) Due to fiscal deficit
(B) Due to adverse BOP
(C) Rise in prices
(D) All of the above
Answer: (D) All of the above
3.
When did the Gulf Crisis take place?
(A) 1985
(B) 1990-91
(C) 1995
(D) 1975
Answer: (B) 1990-91

4.
How much loan was provided by World Bank and IMF during the nineties to bail India out of the crisis?
(A) $10 million
(B) $10 billion
(C) $7 billion
(D) $20 billion

Answer: (C) $7 billion

5.
What is the main feature of New Economic Policy?
(A) Liberalisation
(B) Privatisation
(C) Globalisation
(D) All of the above

Answer: (D) All of the above

6.
For how many industries, licensing is still necessary?
(A) 7
(B) 6
(C) 9
(D) 10
Answer: (B) 6
7.
How many industries are entirely reserved for the public sector?
(A) 6
(B) 10
(C) 2
(D) 4
Answer: (C) 2
8.
What is the investment limit in small scale industries?
(A) 50 lakh
(B) 1 crore
(C) 25 lakh
(D) 75 crore
Answer: (B) 1 crore
9.
When was VAT introduced in most of the States of India?
(A) 1995
(B) 2001
(C) 2005
(D) 2006
Answer: (C) 2005
10.
How many countries are the members of WTO?
(A) 164
(B) 120
(C) 96
(D) 48
Answer: (A) 164
11.
When was WTO established?
(A) 1996
(B) 1998
(C) 2000
(D) 1995
Answer: (D) 1995
12.
Where is the headquarters of WTO located?
(A) Italy
(B) Geneva
(C) New York
(D) Washington
Answer: (B) Geneva

II. Fill in the blanks with the correct answer.

1.
India met with an economic crisis in 1991 as it failed to repay its _______ from abroad.

Answer: borrowings
2.
_______ is the excess of expenditure (borrowings) over income.
Answer: Deficit
3.
To overcome the crisis, India approached IMF and World Bank for _________
Answer: loan
4.
Economic reforms refer to all those measures that aim at rendering the economy more efficient, competitive and
_________
Answer: developed
5.
Fiscal policy refers to the revenue and expenditure policy of the government to achieve _______ development in the
economy.
Answer: balanced
6.
Financial sectors were allowed to take decisions on various matters, without consulting ________
Answer: RBI
7.
Trade policy reforms led to the removal of export duties to ________ India’s competitive position.
Answer: increase
8.
India has become an important destination for global ______ since the reforms.
Answer: outsourcing
9.
Trade between two countries is called ________ trade.
Answer: bilateral
10.
The industrial sector has experienced _______ in growth pattern.
Answer: fluctuations

III. State whether the following statements are true or false.

1.
Despite efficient management of the Indian economy, India faced an economic crisis in 1991.

Answer: False

2.
The crisis led to a rise in the prices of essential goods.

Answer: True
3.
Reserve Bank of India announced New Economic Policy as a condition to support the Indian economy.
Answer: False
4.
Opening up the economy by removing restrictions on the private sector is called globalisation.
Answer: False
5.
Industrial licensing was abolished on all products except on those which were important from a profit point of view.
Answer: False
6.
The rupee was devalued to resolve the balance of payments crisis.
Answer: True
7.
A fixed exchange rate system was adopted to avoid rigidity in the foreign exchange market.
Answer: False
8.
Private ownership is capable of utilising capital and other resources more efficiently.
Answer: True
9.
GATT is the successor to the WTO.
Answer: False

10.
Opening up the economy resulted in a rapid increase in FDI and foreign exchange reserves.
Answer: True

IV. Match the following.

1.

Column-I Column-II
1. Economic Reforms (A) 1995
2. Gulf Crisis (B) 2005
3. WTO (C) 1990-91
4. VAT (D) 1991
5. GATT (E) 1948
6. Liberalisation (F) Sale of public sector shares
7. Privatisation (G) Abolition of licensing
(H) Integration of domestic economy with rest of
8. Globalisation
the world
9. GST (I) Stripping a currency unit
10. Demonetization (J) An indirect tax
Answer
Answer:

Column-I Column-II
1. Economic Reforms (D) 1991
2. Gulf Crisis (C) 1990-91
3. WTO (A) 1995
4. VAT (B) 2005
5. GATT (E) 1948
6. Liberalisation (G) Abolition of licensing
7. Privatisation (F) Sale of public sector shares
(H) Integration of domestic economy with rest of
8. Globalisation
the world
9. GST (J) An indirect tax
10. Demonetization (I) Stripping a currency unit

Chapter 4 Poverty
I. Choose the correct alternative.

1.
More than _______ of the world’s poor live in India.
(A) half
(B) one-third
(C) one-fourth
(D) one-fifth
Answer:(D) one-fifth
2.
What was the percentage of the population below the poverty line in India in 2011-12?
(A) 26.1%
(B) 19.3%
(C) 22%
(D) 32%
Answer:(C) 22%
3.
Which of the following is the poverty determination measure?
(A) Head Count Ratio
(B) Sen Index
(C) Poverty Gap Index
(D) All of these
Answer

:(D) All of these

4.
When was the Task Force on Projections of Minimum Needs and Effective Consumption Demand was
formed?
(A) 1969
(B) 1979
(C) 1989
(D) 1999

Answer:(B) 1979
5.
Those who regularly move in and out of poverty are called
(A) Chronically poor
(B) Churning poor
(C) Occasionally poor
(D) Transient poor
Answer:(B) Churning poor
6.
In 2011-12, poverty line was defined worth ________ as consumption per person a month for rural areas and
_______ for urban areas.
(A) ₹816 and ₹1,000
(B) ₹1,012 and ₹1,210
(C) ₹550 and ₹860
(D) ₹860 and ₹673
Answer:(A) ₹816 and ₹1,000
7.
Which of the following is an action adopted under the provision of minimum basic amenities to the people?
(A) Prime Minister’s RozgarYojna
(B) SwarnaJayantiShahariRozgarYojna
(C) Pradhan MantriGramodayaYojna
(D) National Rural Livelihood Mission
Answer:(C) Pradhan MantriGramodayaYojna
8.
In 2011-12, which state had the highest poverty rate in India?
(A) Odisha
(B) Bihar
(C) Madhya Pradesh
(D) West Bengal
Answer:(A) Odisha
9.
NFWP was launched in:
(A) November 2004
(B) December 2003
(C) November 2002
(D) December 2005
Answer:(A) November 2004
10.
Which of the following programmes provide assistance to elderly people are given under?
(A) VAMBAY
(B) NSAP
(C) PMGY
(D) PMRY
Answer:(B) NSAP

II. Fill in the blanks with the correct answer.

1.
Poverty is the inability to secure the ________ consumption requirements for life, health, and efficiency.

Answer: minimum
2.
Absolute poverty determines the minimum physical quantities of the requirement for a subsistence level, with the
help of ______
Answer: poverty line
3.
______ and hunger are the key features of the poorest households.
Answer: Starvation
4.
Task Force on Projections of Minimum Needs and Effective Consumption Demand’ was formed in _________
Answer:1979
5.
______ includes those who are usually poor but who may sometimes have relatively more money.
Answer: Chronic poor
6.
_________ is the proportion of persons living below the poverty line.
Answer: Headcount Ratio
7.
Amartya Sen, noted Nobel Laureate, has developed an index known as _________
Answer: Sen Index
8.
The proportion of poor to the population in India was ______ percent in 2011-12.
Answer:22
9.
Under the British, India began to export food grains and, as a result, as many as ________ people died in famines
between 1875 and 1900.
Answer:26 million
10.
There exists a direct relationship between _________ and poverty.
Answer: Unemployment

III. State whether the following statements are true or false.

1.
More than one-fifth of the world’s poor live in India.

Answer: True
2.
Absolute poverty refers to a lack of resources in relation to different classes, regions, and countries.
Answer: False
3.
Transient poor covers those people who are rich most of the time but may sometimes suffer bad luck are said to be
occasionally poor.
Answer: False.
4.
The minimum calorie intake was estimated at 2,400 calories for a rural person and 2,100 for a person in the urban
area.
Answer: True
5.
Uttar Pradesh, Bihar, Madhya Pradesh, West Bengal, and Orissa account for about 70 percent of India’s poor.
Answer: True
6.
Britain’s main goals from the Raj were to provide a market for British exports.
Answer: True
7.
The poverty ratio estimates the minimum level of income that is considered appropriate to secure basic necessities
of life.
Answer: False
8.
The government of India adopted a five-dimensional approach as an attempt to reduce poverty.
Answer: True.
9.
National Food for Work Programme aims at improving the food and nutritional status of the poor.
Answer: False.
10.
Due to unequal distribution of land and other assets, mostly non-poor appropriate the benefits from direct poverty
alleviation programmes.
Answer: True.

IV. Match the following.

1.

Column-I Column-II
(A) Proportion of persons living below the
1. Poverty
poverty line
2. Poverty line (B) Poverty is measured in monetary terms
(C) Poverty is measured with respect to
3. Absolute poverty
various classes
4. Relative poverty (D) Inability to secure the basic needs
5. Headcount ratio (E) 1999
6. Food for Work Programme (F) Divides people into poor and non-poor
7. SwaranJayanti Gram SwarozgarYojana (G) 1970
8. SampoornaGrameenRozgarYojana (H) 2001
9. NFW programme (I) Never poor
10. Non-poor (J) 2004
Answer
Answer:

Column-I Column-II
1. Poverty (D) Inability to secure the basic needs
2. Poverty line (F) Divides people into poor and non-poor
3. Absolute poverty (B) Poverty is measured in monetary terms
(C) Poverty is measured with respect to
4. Relative poverty
various classes
(A) Proportion of persons living below the
5. Headcount ratio
poverty line
6. Food for Work Programme (G) 1970
7. SwaranJayanti Gram SwarozgarYojana (E) 1999
8. SampoornaGrameenRozgarYojana (H) 2001
9. NFW programme (J) 2004
10. Non-poor (I) Never poor
 Chapter 5
Human Capital Formation in India
I. Choose the correct alternative.
1.
Which of the following is not a merit of human capital formation?
(A) Improves technical knowledge
(B) Enlarges the size of business
(C) Increases cost of production
(D) Changes social outlooks

Answer: (C) Increases cost of production

2.
Match and choose the correct combination.
(i) Preventive medicine (A) medical intervention during illness
(ii) Curative medicine (B) vaccination
(iii) Social medicine (C) the spread of health literacy
(A) (i) – (B); (ii) – (A); (iii) – (C)
(B) (i) – (A); (ii) – (B); (iii) – (C)
(C) (i) – (C); (ii) – (B); (iii) – (A)
(D) (i) – (B); (ii) – (C); (iii) – (A)

Answer: (A) (i) – (B); (ii) – (A); (iii) – (C)

3.
Which of the following is not an indicator of education level?
(A) Years of schooling
(B) Life expectancy
(C) Teacher-pupil ratio
(D) Enrollment rate

Answer: (B) Life expectancy

4.
Which of the following institutes comes under the health sector?
(A) NCERT
(B) UGC
(C) AICTE
(D) ICMR

Answer: (D) ICMR

5.
Which level of education takes a major share of total education expenditure in India?
(A) Elementary
(B) Secondary
(C) Higher
(D) Tertiary
Answer: (A) Elementary
6.
What was the share of education in total government expenditure in 2014?
(A) 7.92 percent
(B) 15.7 percent
(C) 0.64 percent
(D) 3.31 percent
Answer: (B) 15.7 percent
7.
What percent of GDP was invested in education in the year 1952?
(A) 7.92 percent
(B) 11.7 percent
(C) 0.64 percent
(D) 3.31 percent
Answer: (C) 0.64 percent
8.
When was Right to Education Act enacted?
(A) 2008
(B) 2009
(C) 2010
(D) 2012
Answer: (B) 2009
9.
What was the average youth literacy rate in 2015?
(A) 89.5 percent
(B) 74 percent
(C) 88 percent
(D) 95.5 percent
Answer: (A) 89.5 percent
10.
Which of the following is not the role of on-the-job training?
(A) Eradicates inequality
(B) Encourages innovation
(C) Promotes modern methods
(D) Enhances productivity
Answer: (D) Enhances productivity

II. Fill in the blanks with the correct answer.

1.
Human capital formation is a _______ process.

Answer: social
2.
Individuals invest in education with the objective of increasing their future ________
Answer: income
3.
_______ is the reason for the rural-urban migration in India.
Answer: Unemployment
4.
________ capital is completely mobile between countries.
Answer: Physical
5.
Economic growth means the ________ in real national income of a country
Answer: increase
6.
Human capital considers education and health as a means to increase _________
Answer: productivity
7.
Higher-income causes building of high level of ________ capital.
Answer: human
8.
India has the potential to become a leading _______ economy.
Answer: knowledge-based
9.
_______ is the prime funding authority for university education.
Answer: UGC
10.
Expenditure per student in _______ education is higher than that of elementary.
Answer: tertiary

III. State whether the following statements are true or false.

1.
Education and health are the two major sources of human capital in a country.

Answer: True
2.
Preventive medicine includes medical practices which are designed to avoid or avert diseases.
Answer: True

3.
Physical capital is inseparable from its owner.
Answer: False
4.
Human capital treats humans as ends in themselves.

Answer: False
5.
Higher-income leads to the development of the high level of human capital and vice-versa.
Answer: True
6.
Indian Council for Medical Research is responsible for the promotion of health and family welfare programmes.

Answer: False
7.
Improper planning for human capital formation has resulted in a shortage of manpower in the health and education
sectors.
Answer: True
8.
Elementary education takes a major share of total education expenditure in India.
Answer: True
9.
The level of unemployment among educated youth is the highest.
Answer: True
10.
The differences in literacy rates between males and females are widening.
Answer: False
IV. Match the following.

1.

Column-I Column-II
1. Human capital (A) Movement of individuals from one place to another
2. Sources of human capital (B) Humans are ends in themselves
3. Migration (C) An economic and technical process
4. Human development (D) Education, health, and training
5. Physical capital (E) Stock of knowledge and skills
6. NCERT (F) 1949
7. ICMR (G) 1961
8. Preventive medicine (H) Medical intervention during illness
9. Curative medicine (I) Vaccination
10. Social medicine (J) The spread of health literacy
Answer:
Column-I Column-II
1. Human capital (E) Stock of knowledge and skills
2. Sources of human capital (D) Education, health, and training
3. Migration (A) Movement of individuals from one place to another
4. Human development (B) Humans are ends in themselves
5. Physical capital (C) An economic and technical process
6. NCERT (G) 1961
7. ICMR (F) 1949
8. Preventive medicine (I) Vaccination
9. Curative medicine (H) Medical intervention during illness
10. Social medicine (J) The spread of health literacy
 Chapter 6
Rural Development
I. Choose the correct alternative.
Question 1.
Which among the following is an initiative taken for the development of rural India?
(A) Human Capital Formation
(B) Land Reforms
(C) Poverty Alleviation
(D) All of these
Answer: (D) All of these

Question 2.
What was the growth rate of agricultural output during 2007-12?
(A) 32% per annum
(B) 6% per annum
(C) 1.5% per annum
(D) 5% per annum
Answer: (A) 32% per annum

Question 3.
When was the National Bank for Agricultural and Rural Development set up?
(A) 1962
(B) 1972
(C) 1982
(D) 1992
Answer: (C) 1982

Question 4.
Which of the following is an institutional source of rural credit?
(A) Moneylenders
(B) Regional Rural Banks
(C) Traders
(D) Landlords
Answer: (B) Regional Rural Banks

Question 5.
Which source of credit had emerged to fully integrate the formal credit system into the overall rural social
and community development?
(A) Self-help Groups
(B) Regional Rural Banks
(C) Commercial Banks
(D) Land Development Banks
Answer: (A) Self-help Groups

Question 6.
Which among the following is a process that involves the assembling, storage, processing, transportation,
packaging, grading, and distribution of different agricultural commodities across the country?
(A) Agricultural Management
(B) Agricultural Banking
(C) Agricultural Diversification
(D) Agricultural Marketing
Answer: (D) Agricultural Marketing
Question 7.
Which Indian state has been held as a success story in the efficient implementation of milk cooperatives?
(A) Punjab
(B) Gujarat
(C) Uttar Pradesh
(D) West Bengal
Answer: (B) Gujarat

Question 8.
What is the name of the vegetable and fruit market in Andhra Pradesh?
(A) ApniMandi
(B) HadasparMandi
(C) Rythu Bazars
(D) UzhavarSandies
Answer: (C) Rythu Bazars

Question 9.
How much do the “inland sources” contribute to the total fish production in India?
(A) 64 percent
(B) 39 percent
(C) 50 percent
(D) 75 percent
Answer: (A) 64 percent

Question 10.
Which status has been accorded to the retail chains and supermarkets for selling organic food?
(A) Eco Status
(B) Sustainable Status
(C) Nutritional Status
(D) Green Status
Answer: (D) Green Status

II. Fill in the blanks with the correct answer.

Question 1.
________ once said that the real progress of India did not mean simply the growth and expansion of
industrial urban centres but mainly the development of the villages.
Answer: Mahatma Gandhi

Question 2.
During 2007-12, agriculture output has grown at ________
Answer: 3.2 percent

Question 3.
At the time of independence, moneylenders and traders _________ small and marginal farmers and
landless labourers.
Answer: exploited

Question 4.
The _______ was a harbinger of major changes in the credit system.
Answer: green revolution

Question 5.
By March 2003, _______ SHGs had been provided credit by the banking system.
Answer: 7 lakh
Question 6.
More than 10 percent of goods produced in farms are wasted due to lack of _______
(storage/transportation facilities)
Answer: storage

Question 7.
The alternate marketing channels in Punjab, Haryana, and Rajasthan are known as ________
Answer: ApniMandi

Question 8.
Much of the agricultural employment activities are concentrated in the ________ season.
Answer: Kharif

Question 9.
Cattle and buffalo account for _______ of India’s total livestock in 2007.
Answer: 26 percent

Question 10.
________ relies heavily on chemical fertilizers and toxic pesticides.
Answer: Conventional farming

III. State whether the following statements are true or false.

Question 1.
Rural development mostly depends upon the development of agriculture.
Answer: True

Question 2.
Farmers borrow from various sources to meet their initial investment on seeds, fertilizers, implements, and
other family expenses.
Answer: True

Question 3.
Institutional sources of credit include moneylenders, traders, employers, relatives, and friends.
Answer: False

Question 4.
The major achievement of rural banking over the years has been the effective recovery of loans.
Answer: False

Question 5.
Self-help groups have helped in the empowerment of women.
Answer: True

Question 6.
The current infrastructure facilities are sufficient to meet the growing demand in rural agricultural
marketing.
Answer: False

Question 7.
At present, the livestock sector provides alternate livelihood options to over 70 million small and marginal
farmers and landless labourers.
Answer: True
Question 8.
Horticulture is a branch of agriculture-related to the management and care of farm animals such as cattle,
sheep, pigs, and goats.
Answer: False

Question 9.
Chemical-based fertilizers and pesticides used in agriculture are beneficial for the natural eco-systems.
Answer: False

Question 10.
The use of eco-friendly technologies such as organic farming is essential for sustainable development.
Answer: True

IV. Match the following.

Question 1.
Column-I Column-II
1. Green revolution (A) 1982
2. NABARD (B) 1967-68
3. Land Reform (C) Conversion of scattered holdings into unified holdings
4. Consolidation of holding (D) Institutional reforms
5. Ceiling of landholding (E) Maximum holding size
Answer:
Column-I Column-II
1. Green revolution (B) 1967-68
2. NABARD (A) 1982
3. Land Reform (D) Institutional reforms
4. Consolidation of holding (C) Conversion of scattered holdings into unified holdings
5. Ceiling of landholding (E) Maximum holding size

Chapter 7
Employment: Growth, Informalisation and Other Issues
I. Choose the correct alternative.

1.Which of the following statement is not true for a worker?

(A) A worker contributes to the GDP.
(B) Workers may temporarily abstain from work due to illness.
(C) Self-employed are not workers.
(D) Those who help the main workers are also workers.

Answer: (C) Self-employed are not workers.

2.
What is the distribution of the workforce in rural and urban areas?
(A) 75 : 25
(B) 60 : 40
(C) 50 : 50
(D) 40 : 60

Answer: (A) 75 : 25
3.
Which of the following is the correct definition of self-employed?
(A) Not able to find jobs during some months of the year
(B) Own and operate their own enterprises
(C) Receive wages on a regular basis by the employer
(D) Casually engaged in other individuals enterprises

Answer: (B) Own and operate their own enterprises

4.
What percent of urban workers are casual labourers?
(A) 54 percent
(B) 41 percent
(C) 39 percent
(D) 18 percent

Answer: (D) 18 percent

5.
Which of the following workers is a regular salaried employee?
(A) Owner of a saloon
(B) Rickshaw puller
(C) Cashier in State Bank of India
(D) Vegetable vendor

Answer: (C) Cashier in State Bank of India

6.
Which of the following is a primary sector activity?
(A) Mining and Quarrying
(B) Construction
(C) Trade
(D) Transport and Storage

Answer: (A) Mining and Quarrying

7.
What proportion of the urban workforce is engaged in the secondary sector?
(A) Half
(B) One-third
(C) One-fourth
(D) One-fifth

Answer: (B) One-third

8.
What was the average rate of growth of employment during 1950-2010?
(A) 1 percent
(B) 2 percent
(C) 5 percent
(D) 10 percent
Answer: (B) 2 percent
9.
Which of the following is not a feature of organised sector?
(A) Job Security
(B) Social security benefits
(C) Irregular payment
(D) Fixed working hours

Answer: (C) Irregular payment

10.
Which of the following is not an employment generation programme?
(A) Rural Employment Generation Programme (REGP)
(B) Prime Minister’s RozgarYojana (PMRY)
(C) National Food for Work Programme (NFWP)
(D) Valmiki AmbedkarAwasYojana

Answer: (D) Valmiki AmbedkarAwasYojana

II. Fill in the blanks with the correct answer.

1.
Economic activities contribute to the ________ of the country.

Answer: GDP

2.
Worker-population ratio analyses the situation of ______ in the country.

Answer: employment

3.
Activities performed by women for the household are not recognized as ______ work.

Answer: productive

4.
Workers who own and operate an enterprise to earn their livelihood are known as ________

Answer: self-employed

5.
Among regular salaried employment, ___________ workers are found to be so engaged in greater
proportion.

Answer: male

6.
Enterprises in _______ areas require workers on a regular basis.

Answer: urban

7.
The ________ sector gives employment to about one-third of the urban workforce.

Answer: secondary
8.
______ sector covers those enterprises or places of work where the terms of employment are regular and
therefore, people have assured work.

Answer: Organised

9.
In _______ unemployment, people are not able to find jobs during some months of the year.

Answer: seasonal

10.
NREGA 2005 promises ________ of guaranteed wage employment to all rural households who volunteer
to do unskilled manual work.

Answer: 100 days

III. State whether the following statements are true or false.

1.
Workers do not include those who help the main workers in their activities.

Answer: False

2.
Urban people have a variety of employment opportunities.

Answer: True

3.
Self-employed and casual wage labourers are found more in rural areas.

Answer: True

4.
Casual wage work is the major source for both men and women.

Answer: False

5.
In the course of the economic development of a country, workers migrate from rural to urban areas.

Answer: True

6.
There has hardly been any change in the distribution of the workforce across various industries since the
1970s.

Answer: False

7.
The Indian economy has been able to produce more goods and services due to growth in employment
opportunities.

Answer: False
8.
Employment is not secure in organised sector.

Answer: False

9.
The Indian government has initiated the modernisation of informal sector enterprises and the provision of
social security measures to informal sector workers.

Answer: True

10.
Newly emerging jobs are found mostly in the service sector.

Answer: True

IV. Match the following.

1.
Column-I Column-II
1. Rural unemployment (A) Educated unemployment
2. Urban unemployment (B) Cyclical unemployment
3. Participation rate (C) Disguised unemployment
4. Number of persons unemployed (D) Workforce Total population ×100
5. Unemployment due to economic
(E) Labour force – workforce
fluctuations
Answer:
Column-I Column-II
1. Rural unemployment (C) Disguised unemployment
2. Urban unemployment (A) Educated unemployment
3. Participation rate (D) Workforce Total population ×100
4. Number of persons unemployed (E) Labour force – workforce
5. Unemployment due to economic
(B) Cyclical unemployment
fluctuations

Chapter 8 Infrastructure
I. Choose the correct alternative.

1.
Which of the following statements is not correct with regards to infrastructure?
(A) Infrastructure contributes to economic development.
(B) Infrastructure provides support services.
(C) All infrastructural facilities have a direct impact on the production of goods and services.
(D) Inadequate infrastructure can have multiple adverse effects on health.

Answer: (C) All infrastructural facilities have a direct impact on the production of goods and services.
2.
Which of the following facilities is included in social infrastructure?
(A) Roads and highways
(B) Housing
(C) Internet
(D) Electricity
Answer: (B) Housing
3.
What is morbidity?
(A) Proneness to fall ill
(B) High infant mortality rate
(C) High maternal mortality rate
(D) Low life expectancy
Answer: (A) Proneness to fall ill
4.
What percent of rural households use bio-fuels for cooking?
(A) 50 percent
(B) 75 percent
(C) 80 percent
(D) 90 percent
Answer: (D) 90 percent
5.
Which of the following countries invest almost 50 percent of its GDP in infrastructure?
(A) India
(B) China
(C) Pakistan
(D) Sri Lanka
Answer: (B) China
6.
Low-income countries do not invest in which of the given infrastructural services?
(A) Transport
(B) Irrigation
(C) Power
(D) Telecommunication
Answer: (D) Telecommunication
7.
Which of the following statements is true for commercial sources of energy?
(A) Commercial sources are bought and sold.
(B) Commercial sources are renewable.
(C) Commercial sources are found in forests.
(D) Dried dung is an example of a commercial source of energy.
Answer: (A) Commercial sources are bought and sold.
8.
Which of the following sector was the largest consumer of commercial energy in 1953-54?
(A) Households
(B) Transport
(C) Industries
(D) Agriculture
Answer: (B) Transport
9.
Which of the following is not a function of primary health care?
(A) Spreading education concerning prevailing health problems
(B) Promoting food supply and proper nutrition
(C) Conducting research
(D) Providing essential drugs
Answer: (C) Conducting research
10.
Which of the following systems is not included in the Indian System of Medicines?
(A) Allopathy
(B) Homeopathy
(C) Naturopathy
(D) Ayurveda
Answer: (A) Allopathy

II. Fill in the blanks with the correct answer.

1.
Infrastructure associated with energy, transportation, and communication is included in the ______
infrastructure.

Answer: social
2.
______ and safety hazards connected to transportation affect morbidity.
Answer: Air pollution
3.
Inadequate infrastructure can have multiple adverse effects on ________
Answer: health
4.
Agriculture considerably depends on the adequate expansion and development of ______ facilities.
Answer: irrigation

5.
_______ accounts for the largest share in the commercial energy consumption in India.

Answer: Coal
6.
Hydel and wind power do not rely on _________
Answer: fossil fuel
7.
________ sources of energy are found in nature/forests.
Answer: Non-commercial
8.
The hospitals at the village level are known as ________
Answer: PHCs
9.
_________ has huge potential because they are effective, safe, and inexpensive.
Answer: ISM (Indian System of Medicine)
10.
Accessibility and _________ need to be integrated in our basic health infrastructure in order to provide basic
healthcare to all.
Answer: affordability
III. State whether the following statements are true or false.

1.
Both economic and social infrastructures are essential for the development of a country.

Answer: True
2.
The share of basic infrastructure services such as irrigation, transport, and power is greater in high-income countries.
Answer: False
3.
The private sector in India has started playing an important role in infrastructure development in joint partnership with
the public sector.
Answer: True
4.
The use of renewable energy sources can ensure an additional supply of electricity.
Answer: True
5.
The growth rate of demand for power is always lower than the GDP growth rate.
Answer: False
6.
Industries are the largest consumer of commercial energy.
Answer: True
7.
The privatization of the power sector has benefitted certain sectors in terms of prices.
Answer: False
8.
India’s health infrastructure and health care is made up of a three-tier system.
Answer: True
9.
Infrastructural development in India has not been uniform over the last six decades.
Answer: True
10.
Hospitals under the secondary sector have advanced level equipment and medicines.
Answer: False

IV. Match the following.

1.

Column-I Column-II
1. Social infrastructure (A) The poor
2. Non-conventional energy (B) Education
3. Health infrastructure biased against (C) Outsourcing
4. Essential indication of good health (D) Biomass
5. Infrastructure facilitates (E) High expectancy of life
Answer
:

Column-I Column-II
1. Social infrastructure (B) Education
2. Non-conventional energy (D) Biomass
3. Health infrastructure biased against (A) The poor
(E) High expectancy of
4. Essential indication of good health
life
5. Infrastructure facilitates (C) Outsourcing

Chapter 9
Environment and Sustainable Development
I. Choose the correct alternative.
Question 1.
Which of the following is not a biotic element?
(A) Birds
(B) Sunlight
(C) Forests
(D) Animals
Answer: (B) Sunlight

Question 2.
Which of the following is a renewable resource?
(A) Fish
(B) Coal
(C) Petroleum
(D) Iron-ore
Answer: (A) Fish

Question 3.
Which of the following is an impact of global warming?
(A) Deforestation
(B) Rise in sea level
(C) Waste generation
(D) Rapid increase in population
Answer: (B) Rise in sea level
Question 4.
In which of the following layers of the atmosphere is ozone shield found?
(A) Troposphere
(B) Exosphere
(C) Stratosphere
(D) Mesosphere
Answer: (C) Stratosphere

Question 5.
Which of the following is a consequence of ozone layer depletion?
(A) Skin cancer in humans
(B) Lower production of phytoplankton
(C) Hampers growth of terrestrial plants
(D) All of the above
Answer: (D) All of the above

Question 6.
When was the Central Pollution Control Board (CPCB) set up?
(A) 1964
(B) 1974
(C) 1984
(D) 1994
Answer: (B) 1974

Question 7.
How many industrial categories have been identified as significantly polluting by the CPCB?
(A) 17
(B) 25
(C) 27
(D) 31
Answer: (A) 17

Question 8.
Which of the following is the modern concept of development?
(A) Economic development
(B) Economic growth
(C) Sustainable development
(D) Human development
Answer: (C) Sustainable development

Question 9.
Use of which of the following has resulted in a significant reduction in Delhi’s pollution?
(A) LPG at homes
(B) Solar cells for electricity
(C) Thermal power plants
(D) CNG in public transport
Answer: (D) CNG in public transport
Question 10.
Which of the following is a conventional source of energy?
(A) Sun
(B) Wind
(C) Dried dung
(D) Tides
Answer: (C) Dried dung

II. Fill in the blanks with the correct answer.

Question 1.
Sunlight is an example of ______ elements.
Answer: abiotic

Question 2.
______ resources are those which get exhausted with extraction and use.
Answer: Non-renewable

Question 3.
The absorptive capacity of the environment is the ability to absorb ________
Answer: degradation

Question 4.
Global warming is caused due to increase in greenhouse gases through the burning of fossil fuels and ________
Answer: deforestation

Question 5.
In India, the ________ of the Deccan Plateau is particularly suitable for the cultivation of cotton.
Answer: black soil

Question 6.
The origins of chlorine and bromine compounds in stratosphere are ________
Answer: chlorofluorocarbons

Question 7.
_______ emissions are the major contributors to air pollution in urban areas of India.
Answer: Vehicular

Question 8.
The CPCB has identified _______ categories of industries as significantly polluting.
Answer: seventeen

Question 9.
Thermal power plants emit large quantities of ________ which is a greenhouse gas.
Answer: carbon dioxide

Question 10.
________ plants use the energy of such streams to move small turbines.
Answer: Mini-hydel
III. State whether the following statements are true or false.
Question 1.
Fossil fuels can be used without the possibility of these becoming depleted or exhausted.
Answer: False

Question 2.
The environment is able to perform its functions without any interruption as long as the resource extraction does
not exceed the rate of regeneration.
Answer: True

Question 3.
In the early days of civilisation, the supply of environmental resources and services was much less than their
demand.
Answer: False

Question 4.
India alone accounts for nearly 20 percent of the world’s total iron-ore reserves.
Answer: True

Question 5.
Improper planning and management of irrigation systems are one of the factors responsible for land degradation.
Answer: True

Question 6.
Herman Daly defined sustainable development as one which is directly concerned with increasing the material
standard of living of the poor at the grass-root level.
Answer: False

Question 7.
Sustainable development is synonymous with the conservation of the environment.
Answer: True

Question 8.
The products used under a western system of treatment are free from side effects.
Answer: False
Question 9.
Earthworms can convert organic matter into compost faster than the normal composting process.
Answer: True
Question 10.
Prior to the advent of the green revolution, food products were contaminated and soil, water bodies, and even
groundwater were polluted.
Answer: False
IV. Match the following.
Question 1.

Column-I Column-II
 1. Condition of sustainable development (A) Industrial machines
2. Reason for noise pollution (B) Long term increase in real per capita income
3. Cause of environmental degradation (C) Reduction in level of pollution
4. Non-renewable resources (D) Rapid industrialisation
5. Economic growth (E) Exhausted after use
Answer:
Column-I Column-II
1. Condition of sustainable development (C) Reduction in level of pollution
2. Reason for noise pollution (A) Industrial machines
3. Cause of environmental degradation (D) Rapid industrialisation
4. Non-renewable resources (E) Exhausted after use
5. Economic growth (B) Long term increase in real per capita income

Chapter 10
Comparative Development Experiences of India and its
Neighbours
I. Choose the correct alternative.
Question 1.
Which of the following countries ranks first in the development experience?
(A) India
(B) China
(C) Pakistan
(D) None of the above

Answer

Answer: (B) China

Question 2.
When were economic reforms initiated in China?
(A) 1978
(B) 1988
(C) 1990
(D) 1991

Answer

Answer: (A) 1978

Question 3.
What was the fertility rate in Pakistan as in 2015?
(A) 1.6
(B) 2.6
(C) 3.7
(D) 3.6

Answer

Answer: (C) 3.7

Question 4.
In which of the following indicators is Pakistan ahead of India and China?
(A) Urbanisation
(B) Fertility rate
(C) Density
(D) Population

Answer

Answer: (B) Fertility rate

Question 5.
Which of the following countries has introduced the one-child norm?
(A) China
(B) India
(C) Pakistan
(D) Bangladesh

Answer

Answer: (A) China

Question 6.
In which of the following countries does the service sector contribute the most in GDP?
(A) India
(B) Pakistan
(C) China
(D) Both (A) and (B)

Answer

Answer: (D) Both (A) and (B)

Question 7.
Which of the following country was faster in shifting its workforce from agriculture to the service sector?
(A) India
(B) Pakistan
(C) China
(D) Both (A) and (B)

Answer

Answer: (B) Pakistan

Question 8.
Which of the following is not an indicator of human development?
(A) Density of Population
(B) GDP per capita
(C) Life expectancy at birth
(D) Literacy rate

Answer

Answer: (A) Density of Population

Question 9.
With which of the following concepts is the commune system associated?
(A) Industrialisation
(B) Human rights
(C) Equal distribution of land
(D) Special Economic Zones

Answer

Answer: (C) Equal distribution of land

Question 10.
How many people died in the devastating earthquake that took place in Pakistan in 2005?
(A) 45,000
(B) 55,000
(C) 65,000
(D) 75,000
Answer

Answer: (D) 75,000

II. Fill in the blanks with the correct answer.

Question 1.
China that has recently started moving towards a ________ system.

Answer

Answer: democratic

Question 2.
The people’s Republic of China was established in _______

Answer

Answer: 1949

Question 3.
Pakistan’s five-year plan is now called the ________ Term Development Plan.

Answer

Answer: Medium

Question 4.
_______ introduced the Great Proletarian Cultural Revolution in 1695 in China.

Answer

Answer: Mao

Question 5.
In the 1970s, nationalization of capital goods industries took place in ________
Answer

Answer: Pakistan

Question 6.
The population of Pakistan accounts for roughly about ________ of China.

Answer

Answer: one-tenth

Question 7.
________ is high in both Pakistan and China.

Answer

Answer: Urbanisation

Question 8.
In China, due to topographic and climatic conditions, the area suitable for cultivation is relatively
_________

Answer

Answer: small

Question 9.
In India and Pakistan, the service sector accounts for more than ________ percent of GDP.

Answer

Answer: 50

Question 10.
Lack of ________ freedom and its implications for human rights are major concerns in China.
Answer

Answer: political

III. State whether the following statements are true or false.

Question 1.
Regional and global economic groupings are formed to protest against the free flow of goods and services
between nations.

Answer

Answer: False

Question 2.
India and Pakistan adopted similar strategies for social and economic development.

Answer

Answer: True

Question 3.
Pakistan introduced a variety of regulated policy framework for import substitution industrialization.

Answer

Answer: True

Question 4.
China received financial support from western nations.

Answer

Answer: False
Question 5.
India has the largest share of the poor among the three countries.

Answer

Answer: True

Question 6.
The One-child norm introduced in China is the major reason for low population growth.

Answer

Answer: True

Question 7.
The fertility rate is low in Pakistan while it is very high in China.

Answer

Answer: False

Question 8.
In 2000-10, there was a rapid increase in the growth rates of India and China.

Answer

Answer: False

Question 9.
In all the three economies, the industry and service sectors have less proportion of workforce but
contribute more in terms of output.

Answer

Answer: True
Question 10.
China’s growth is mainly contributed by the industrial sector and India’s growth by the service sector.

Answer

Answer: True

IV. Match the following.

Question 1.

Column-I Column-II
1. Economic reforms in India (A) 1978
2. Economic reforms in China (B) 1991
3. Economic reforms in Pakistan (C) System of collective farming
4. GLF campaign in China (D) 1988
5. Lowest density of population (E) Widespread industrialization
6. Commune farming (F) China
Answer
Answer:

Column-I Column-II
1. Economic reforms in India (B) 1991
2. Economic reforms in China (A) 1978
3. Economic reforms in Pakistan (D) 1988
4. GLF campaign in China (E) Widespread industrialization
5. Lowest density of population (F) China
6. Commune farming (C) System of collective farming
 Class 12 Shiv Das

2021-22
CBSE
Term 1
(Nov-Dec)
Chapterwise
QUESTION BANK
MC Q s
ECONOMICS
Competency Based Questions
• Case Studies with MCQs  • Objective Type MCQs
• Assertion-Reasoning

Chapterwise
• Keynotes
• Questions & Answers

OMR Based
Sample Question Paper

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C ontents
Term–1

Latest Syllabus (Issued by CBSE) ...(vi)

Competency Based Questions (CBQs)
PART A : INTRODUCTORY MACROECONOMICS
Unit 2 Money and Banking ... C-1
Unit 4 Government Budget and the Economy ... C-6
Unit 5 Balance of Payments ... C-11
PART B : INDIAN ECONOMIC DEVELOPMENT
Chapter 1 Indian Economy on the Eve of Independence ... C-16
Chapter 2 Indian Economy (1950-1990) ... C-22
Chapter 3 Liberalisation, Privatisation and Globalisation: An Appraisal ... C-29
Chapter 4 Poverty ... C-34
Chapter 5 Human Capital Formation ... C-39
Chapter 6 Rural Development ... C-44
Chapterwise CBSE Examination Questions
PART A : INTRODUCTORY MACROECONOMICS
Unit 2 Money and Banking ... 1
Unit 4 Government Budget and the Economy ... 17
Unit 5 Balance of Payments ... 35
PART B : INDIAN ECONOMIC DEVELOPMENT
Chapter 1 Indian Economy on the Eve of Independence ... 51
Chapter 2 Indian Economy (1950-1990) ... 57
Chapter 3 Liberalisation, Privatisation and Globalisation: An Appraisal ... 76
Chapter 4 Poverty ... 93
Chapter 5 Human Capital Formation ... 104
Chapter 6 Rural Development ... 115
OMR Based Sample Question Paper ...OMR-1
✽ • •• • ✽
 CBSE BOARD EXAM 2021-22

NEW PATTERN
(CBSE Circular no. Acad-51/2021) dated 5th July, 2021

TERM-1
50% Syllabus for Nov-Dec. 2021
Questions Types (90 Minutes)

CASE BASED MULTIPLE CHOICE ASSERTION-REASON

MCQs QUESTIONS TYPE MCQs

✰ CBSE to send Question Papers with marking scheme.

✰ Exams will be conducted in the school.
✰ OMR sheet to be used for Evaluation.
✰ Term-1 marks will add to the final result.

Internal Assessment
✰ 3 Periodic Tests
✰ Student Enrichment
✰ Portfolio
✰ Practical
✰ Speaking listening activities
✰ Projects
(v)
 Latest Syllabus (Issued by CBSE) (24 TH
July 2021)

ECONOMICS
COURSE STRUCTURE—CLASS XII (SESSION 2021-2022)
Theory
TERM-1
Time: 90 minutes Maximum Marks: 40

Units Marks Periods

Part A : Introductory Macroeconomics
6 8
✰ Money and Banking
✰ Government Budget and the Economy 6 15
✰ Balance of Payments 6 7

Sub Total 18 30
Part B : Indian Economic Development
✰ Development Experience (1947-90) and Economic Reforms since 1991:
  • Indian Economy on the eve of Independence
12 28
  • Indian Economy (1950-90)
  • Liberalisation, Privatisation and Globalisation : An Appraisal
✰ Current challenges facing Indian Economy
  • Poverty
10 17
  • Human Capital Formation
  • Rural development
Sub Total 22 45
Total 40 75
Project Work (Part 1): 10 Marks
Students would prepare only ONE project in the entire academic session, which is divided into 2 terms i.e.
Term I and Term II.

PART A : INTRODUCTORY MACROECONOMICS

UNIT 2 : MONEY AND BANKING  8 Periods
Money - meaning and supply of money - Currency held by the public and net demand deposits held by
commercial banks.
Money creation by the commercial banking system.
Central bank and its functions (example of the Reserve Bank of India): Bank of issue, Govt. Bank, Banker's
Bank, Control of Credit

(vi)
UNIT 4 : GOVERNMENT BUDGET AND THE ECONOMY  15 Periods
Government budget - meaning, objectives and components.
Classification of receipts - revenue receipts and capital receipts; classification of expenditure – revenue
expenditure and capital expenditure.

UNIT 5 : BALANCE OF PAYMENTS  7 Periods

Balance of payments account - meaning and components;
Foreign exchange rate - meaning of fixed and flexible rates and managed floating.

PART B : INDIAN ECONOMIC DEVELOPMENT

UNIT 6 : DEVELOPMENT EXPERIENCE (1947-90) AND ECONOMIC REFORMS SINCE 1991
 28 Periods
A brief introduction of the state of Indian economy on the eve of independence.
Indian economic system and common goals of Five Year Plans.
Main features, problems and policies of agriculture (institutional aspects and new agricultural strategy),
industry (IPR 1956; SSI – role & importance) and foreign trade.
Economic Reforms since 1991:
Features and appraisals of liberalisation, globalisation and privatisation (LPG policy);
Concepts of demonetization and GST

UNIT 7 : CURRENT CHALLENGES FACING INDIAN ECONOMY  17 Periods

Poverty: Absolute and relative; Main programmes for poverty alleviation: A critical assessment;

Human Capital Formation: How people become resource; Role of human capital in economic development;

Rural development: Key issues - credit and marketing - role of cooperatives; agricultural diversification

✽••••✽

(vii)
INTRODUCTORY
MACROECONOMICS Unit: Two

Money and Banking

COMPETENCY BASED
Competency Based Questions

a s
 Multiple Choice Questions (MCQs) (a) Store of value

iv D
(b) Unit of value
1. The rate at which Commercial Banks borrow

Sh
(c) Standard of deferred payments
from Central Bank is called ________.
(d) Medium of exchange [Ans. (b)
(a) Bank rate
6. Which of the following functions of money
(b) Legal reserve ratio
simplifies the process of borrowing and lending?
(c) Reverse repo rate
(a) Store of value
(d) Cash reserve ratio [Ans. (a)
(b) Medium of exchange
2. The short term borrowing rate at which Reserve
(c) Standard of deferred payments
Bank of India borrows money from Commercial
Banks is called ________. (d) Unit of value [Ans.(c)
(a) Bank rate 7. Which of the following is not included in
(b) Discount rate money supply?
(c) Repo rate (a) Currency held by public
(d) Reverse repo rate [Ans. (d) (b) Inter-bank-deposits
3. What would be the total money creation in the (c) Demand deposits in Banks
economy, If initial fresh deposits with banks = (d) Saving deposits with post office banks.
`50,000 and LRR = 20%. [Ans. (b)
(a) `2,50,000 (b) `5,00,000 8. Read the following dialogue between two
(c) `10,00,000 (d) `12,00,000 [Ans. (a) people.
4. ________ is the main source of money supply in Ramesh: I want 1 kg of potatoes.
an economy. Suresh: What will you give in exchange?
(a) Central Bank Ramesh: I can give you two litres of milk in
(b) Commercial Banks return for the potatoes.
(c) Government Suresh: I don’t need milk. I want a pair of shoes.
(d) Both (a) and (b) [Ans. (d) Which of the following problem is being
faced by Ramesh and Suresh in their exchange
5. Measuring the value of goods and services
refers to which of the following functions of process?
money?
C–1
 C–2 n Shiv Das Chapterwise Question Bank (Economics XII)

(a) Lack of double coincidence of wants  Assertion-Reason Questions

(b) Absence of common unit of value
(c) Lack of store of value DIRECTION: Read the following statements—
(d) Lack of standard of deferred payment Assertion (A) and Reason (R). Choose one of the correct
[Ans. (a) alternatives given below:
9. M1 of money supply does not include. (a) Assertion and Reason both are correct statements
and Reason is correct explanation for Assertion.
(a) Currency held by public
(b) Assertion and Reason both are correct statements
(b) Other deposits in RBI but Reason is not correct explanation for
(c) Demand deposits with the Commercial Assertion.
Banks (c) Assertion is true but Reason is false.
(d) Net time deposits with banks [Ans. (d) (d) Assertion is false but Reason is true.
10. Which Bank is authorised to issue currency? 1. Assertion: Supply of money is a flow variable.
(a) Central Bank Reason: It is measured at a point of time.
(b) Commercial Bank Ans. (d) Assertion is false but Reason is true.
Supply of money is a stock variable.
(c) Cooperative Bank 2. Assertion: Coins are limited legal tender money.
(d) Scheduled Bank [Ans. (a) Reason: Coins represent money which is accepted
Money and Banking

11. Which one of the following is a qualitative by the people to an unlimited extent.
measure of credit control by the Central Bank? Ans. (c) Assertion is true but Reason is false.
(a) Bank rate No person can be forced to accept beyond a certain limit.
3. Assertion: Demand deposits are also called bank
(b) Open market operations
money.
(c) Marginal requirements Reason: Demand deposits are created by

a s
(d) Cash reserve ratio [Ans. (c) commercial banks.

iv D
12. ________ refers to the proportion of total Ans. (a) Assertion and reason both are correct
deposits which Banks are required to keep in statements and reason is correct explanation for

Sh
the form of reserves with themselves. assertion.
(a) Cash deposit ratio 4. Assertion: LRR represents the minimum reserve
(b) Statutory liquidity ratio ratio essential to be maintained by banks.
Reason: Banks create deposits in the process of
(c) Bank rate
making loans to their customers.
(d) Reserve deposit ratio [Ans. (d) Ans. (b) Assertion and reason both are correct
13. Which one of the following is a quantitative statements but reason is not correct explanation
tool of credit control used by RBI? for assertion.
(a) Bank rate policy LRR is maintained to meet the cash requirements of the
depositors.
(b) Marginal requirements
5. Assertion: Open market operations are used to
(c) Moral suasion influence money supply in the economy.
(d) Direct action [Ans. (a) Reason: Central bank sells government securities
14. Which of the following is not the function of to increase the flow of credit in the economy.
the Central Bank? Ans. (c) Assertion is true but Reason is false.
(a) Banking facilities to government The Central Bank, through purchase and sale of government
securities, influences money supply in the economy as
(b) Lending to commercial banks
money is ultimately routed through banks.
(c) Banking facilities to public 6. Assertion: Bank rate is decreased when credit is
(d) Lending to government [Ans. (c) to be expanded.
15. The ratio of total deposits that a commercial Reason: Selective credit control involves
Banks has to keep with Reserve Bank of India specifying the amount and purpose for which
is called credit is to be given.
(a) Deposit ratio Ans. (b) Assertion and reason both are correct
statements but reason is not correct explanation
(b) Cash reserve ratio
for assertion.
(c) Legal reserve ratio A low bank rate reduces the cost of borrowing of commercial

(d) Statutory liquidity ratio [Ans. (b) banks and encourages them to use a greater proportion of
their funds for giving out loans.
 Competency Based Questions (CBQs) n C–3

7. Assertion: The Central Bank is also known as the It also sapped some funds from banks by raising
bank of issue. the Cash Reserve Ratio (CRR) and using the
Reason: The Central Bank enjoys the sole money for more targeted market operations.
monopoly of issuing currency to ensure control The MPC, which cut borrowing costs by 115
over volume of currency and money supply. basis points last year, kept the repurchase or repo
Ans. (a) Assertion and reason both are correct rate unchanged at 4 percent. Consequently, the
statements and reason is correct explanation for reverse repo rate will also continue to earn 3.35
assertion. per cent for banks for their deposits kept with the
8. Assertion: Demand deposits are created by RBI.
commercial banks. Das announced the restoration of CRR - the
Reason: Demand deposits form a significant part amount of deposits lenders must set aside as

COMPETENCY BASED
of the total money supply in the economy. reserves - to 3.5 per cent in March and 4 per cent
Ans. (b) Assertion and reason both are correct in May.
statements but reason is not correct explanation The cash returning to the central bank can be
for assertion. used by it for open market operations and other
Accepting deposits is an important function of commercial liquidity measures.
banks.
(i) The two essential conditions for a financial
9. Assertion: Only net demand deposits held by
institution to become a bank are:
commercial banks are taken as part of money (a) accepting deposits and lending
supply. (b) printing currency notes
Reason: Only deposits of the public held by the (c) both (a) and (b)
banks are included in money supply. (d) neither (a) nor (b)
Ans. (a) Assertion and reason both are correct Ans. (a) accepting deposits and lending
statements and reason is correct explanation for

s
(ii) Which of the following is not a quantitative

a
assertion. method of credit control?

iv D
10. Assertion: Credit creation is inversely related to
(a) open market operation
the Legal Reserve Ratio.

Sh
(b) bank rate policy
Reason: LRR is fixed by the market forces of (c) legal reserve requirements
demand and supply. (d) margin requirements
Ans. (c) Assertion is true but Reason is false. Ans. (d) margin requirements
Lower the money multiplier, lesser will be the total credit

creation by commercial banks. (iii) The central bank does not performs the
following functions.
 Case Based Questions (a) conducts sale and purchase of securities for
1. Read the para given below and answer the foreign governments securities.
questions that follow: (b) acts as a lender of the last resort.
The Reserve Bank of India (RBI) on Friday kept (c) controls money supply and credit.
interest rates on hold while assuring to maintain (d) manages the nation’s reserves of international
support for reflecting the economy by ensuring currency.
Ans. (a) conducts sale and purchase of securities for
ample liquidity to manage the government's
near-record borrowing. foreign governments securities.
The six-member Monetary Policy Committee (iv) Loans offered by commercial banks _______
(MPC) voted to continue with the accommodative (increase/decrease) the money supply in the
stance as long as it is necessary to revive growth economy.
Ans. increase
and mitigate the impact of Covid-19 on the
economy while ensuring that inflation remains
2. Read the para given below and answer the
within the target, Governor Shaktikanta Das said. questions that follow:
While the Union Budget 2021 laid down an The money supply is all the currency and other
expansive fiscal strategy over the medium term liquid instruments in a country’s economy on
to strengthen the growth engine in the economy, the date measured. The money supply roughly
the RBI affirmed its support to such a plan includes both cash and deposits that can be used
through appropriate monetary tools. almost as easily as cash.
To absorb higher government borrowings, the Governments issue paper currency and coins
Central Bank provided retail investors a direct through some combination of their central
option to invest in government securities. banks and treasuries. Bank regulators influence
 C–4 n Shiv Das Chapterwise Question Bank (Economics XII)

money supply available to the public through the (b) It issues the currency of the country.
requirements placed on banks to hold reserves, (c) It acts as a bank of the banking system.
how to extend credit and other regulations. (d) It is the custodian of the foreign exchange
Economists analyze the money supply and reserves of the economy.
develop policies revolving around it through Ans. (a) It helps in barter exchange.
controlling interest rates and increasing or 3. Read the para given below and answer the
decreasing the amount of money flowing in the questions that follow:
economy. Heightened uncertainty in India caused by the
An increase in the supply of money typically Coronavirus pandemic led to a surge in the
lowers interest rates, which in turn, generates currency in circulation as people hoarded cash
more investment and puts more money in or put money in accessible deposits to safeguard
the hands of consumers, thereby stimulating themselves against salary cuts or job losses.
spending. Businesses respond by ordering more According to RBI data, India’s M3 money supply
raw materials and increasing production. The rose 6.7% in the first five months of 2020 compared
increased business activity raises the demand with the same period in 2019, the highest growth
for labour. The opposite can occur if the money in seven years. Currency in circulation, which
supply falls or when its growth rate declines. measures money with the public and in banks
has also surged.
Money and Banking

(i) Which of the following statement is not true

regarding money supply? Gross capital formation, or total investments
(a) It is a stock variable. toward fixed capital in the country, fell
(b) It does not include money held by government significantly. Savings and current account
and the banking system. deposits fell 8% due to higher withdrawals. The
(c) It includes term deposits with the banks. growth in currency notes held by the public was

s
(d) It includes currency held with the public. much higher than the deposits made in banks.

a
Ans. (c) It includes term deposits with the banks. A rise in money supply usually is seen as a

iv D
leading indicator of growth in consumption
(ii) From the set of statements given in Column I

Sh
and business investments, but the rise this time
and II, choose the correct pair of statements:
was unlikely to bolster either, analysts said.
The increase was a reflection of higher cash
Column I Column II
withdrawals by depositors to meet the needs
1. Bank money A. exchange of money during the lockdown period, until normalcy
for goods returns.
2. Barter exchange B. a component of (i) _________ (quantitative/qualitative) instruments
money supply. of monetary policy affect the direction of credit
3. Demand deposits C. demand deposits in the economy.
Ans. qualitative
with banks created by
commercial banks (ii) Choose the correct pair of statements from the
given statements in Column I and II:
4. Legal tender D. money which can
be legally used to Column I Column II
make payment of
1. LRR A. rate of interest at which
debts
Central Bank lends to
(a) 1-A (b) 2-B commercial banks for
(c) 3-C (d) 4-D long term
Ans. (d) 4-D 2. Reverse Repo B. rate at which the RBI
(iii) Who regulates money supply in India? Rate borrows money from
(a) Government of India commercial banks
(b) Reserve Bank of India 3. Bank Rate C. rate at which Central
(c) Commercial banks Bank advances
(d) Planning Commission short term loans to
Ans. (b) Reserve Bank of India
commercial banks
(iv) Which of the following is not a function of The
Reserve Bank of India? 4. Repo Rate D. minimum reserve
(a) It helps in barter exchange. maintained by a
commercial bank
 Competency Based Questions (CBQs) n C–5

(a) 1-A (b) 2-B country and provides financial assistance to these
(c) 3-C (d) 4-D banks like short-term loans and advances. It is the
Ans. (b) 2-B function of the RBI to maintain the value of the
(iii) Which of the following statements is true? rupee in the global economy. It does so by acting
(a) Money Multiplier is inversely related to LRR. as the custodian of foreign exchange reserves
(b) Loans given by Commercial banks are equal in the country. It maintains enough reserves to
to the amount of deposits they receive. battle against fluctuations. The RBI also maintains
(c) CRR is decreased to control inflation control of credit and money in the market. It uses
(d) Demand deposits refer to the cash reserves of qualitative and quantitative methods to either
Commercial Banks. expand or contract the available credit in the
Ans. (a) Money Multiplier is inversely related to LRR. economy according to circumstances.

COMPETENCY BASED
(iv) The moral influence that the Central Bank (i) If the legal reserve ratio is 20%, the value of
applies on member banks in order to get them money multiplier would be:
to act in line with its policy is called as________. (a) 2 (b) 3
Ans. moral suasion (c) 5 (d) 4
4. Read the para given below and answer the Ans. (c) 5
questions that follow: (ii) In order to encourage investment in the
The Reserve Bank of India is the Central Bank economy, the central bank may:
of India, which means it is at the apex of the (a) reduce cash reserve ratio.
banking structure of the economy. It is one of the (b) increase cash reserve ratio.
main governing bodies and regulatory bodies in (c) sell government securities in open market.
India and helps the government in its role as a (d) increase the bank rate.
Ans. (a) reduce cash reserve ratio.
business facilitator.

s
The RBI was first established on the 1st of April (iii) The monetary policy generally targets to ensure:

a
1935 and nationalized in 1949. The governing of (a) price stability in the economy.

iv D
the RBI is done in accordance to the RBI Act by (b) employment generation in the country.

Sh
the government. Its day to day affairs are taken (c) stable foreign relations.
care of by the Board of Directors who are chosen (d) greater tax collections for the government.
Ans. (a) price stability in the economy.
by the government.
The RBI is the only authorized body that can (iv) Lowering the bank rate is a measure to:
issue currency in the country. So they print, (a) encourage foreign investment in the
distribute and regulate the flow of currency in economy.
the economy. The RBI provides the central and (b) increase money supply in the economy.
state government with basic banking functions (c) discourage investment activity in the
and facilities like depositing money, remittances economy.
etc. It can also make advances and provide loans (d) increase government expenditure.
to the government whenever necessary. It also Ans. (b) increase money supply in the economy.
supervises all other commercial banks in the

----------
 INDIAN ECONOMIC
DEVELOPMENT Chapter: One

Indian Economy on
Indian Economy on the Eve of Independence

the Eve of Independence

Competency Based Questions

s
 Multiple Choice Questions (MCQs) (c) both (a) and (b)

iv D a
(d) none of the above [Ans. (c)
1. One of the following statements about the
5. The stagnation in agriculture was caused mainly

Sh
Indian economy is not true. Identify the
due to:
statement:
(a) systems of land settlement
(a) Indian economy was flourishing before the
advent of British. (b) commercialisation of agriculture
(b) British developed the railway system in India (c) zamindari system
for their own benefit. (d) all of the above [Ans. (d)
(c) India had a sound industrial base under the 6. Identify the economist who did not provide
British. any estimate about the national and per capita
(d) India’s foreign trade throughout the colonial income during the colonial period:
period was marked by a large export (a) Dadabhai Naoroji
surplus. [Ans. (c) (b) V.K.R.V. Rao
2. The British introduced the Railways in India in (c) Horace Secrist
the year _________. (d) Findlay Shirras [Ans.(c)
(a) 1805 (b) 1855 7. Indian economy on the eve of Independence
(c) 1850 (d) 1860 [Ans. (c) displayed the following characteristics:
3. The second stage of demographic transition (a) colonial (b) stagnant
began; (c) backward (d) all of the above
(a) after 1921 (b) before 1921 [Ans. (d)
(c) from 1921 (d) none of the above 8. Which year was considered as the year of the
 [Ans. (a) great divide?
4. The public sector during the British rule, (a) 1921 (b) 1947
remained confined to the following areas of (c) 1951 (d) 1931 [Ans. (a)
operation: 9. The export surplus during the British rule was
(a) railways used to:
(b) power generation (a) import invisible items

C–16
 Competency Based Questions (CBQs) n C–17

(b) make payments for expenses incurred by an 1. Assertion: The policies of the colonial government
office setup by the colonial government in brought a fundamental change in the structure of
Britain. the Indian economy.
(c) meet the expenses on War fought by the Reason: The economic policies pursued by the
British government colonial government favoured the promotion of
(d) all of the above [Ans.(d) their economic interest.
10. The first official census was conducted in the Ans. (a) Assertion and reason both are correct
year statements and reason is correct explanation for
(a) 1921 (b) 1951 assertion.
2. Assertion: During the pre-British period, the land
(c) 1881 (d) 1851 [Ans. (c)
settlement system was one of the main reasons

COMPETENCY
11. Occupational structure refers to:
for stagnation in agriculture.
(a) the total workforce of a country Reason: Though, a large proportion of the
(b) the distribution of working persons across population was dependent on agriculture, the
different industries and sectors country was not self-sufficient in food.
(c) population of a country Ans. (b) Assertion and reason both are correct
(d) None of the above [Ans. (b) statements but reason is not correct explanation
12. What was the nature of the Indian economy on for assertion.
the eve of independence? Under this system, profits accruing out of the agricultural
sector went to the zamindars in the form of lagaan. The
(a) Stagnant
zamindars and the colonial government did nothing to
(b) Backward improve the condition of agriculture.
(c) Underdeveloped 3. Assertion: India’s foreign trade was restricted
(d) All of these [Ans. (d) only to Great Britain.

a s
13. In which of the following sectors is Reason: India became an exporter of primary

iv D
manufacturing activity included? products like jute, Indigo etc.
(a) Primary (b) Tertiary Ans. (d) Assertion is false but Reason is true.

Sh
(c) Secondary (d) All of these [Ans. (c) During the British rule, India became an exporter of primary
products and importer of finished goods.
14. Which of the following was the major occupation
on the eve of independence? 4. Assertion: Lack of Capital Goods industry
(a) Industry hindered the industrialisation in India.
Reason: This was done to ensure that India was
(b) Services
not dependent on any country for the supply of
(c) Agriculture Capital goods and heavy equipment.
(d) None of these  [Ans. (c) Ans. (c) Assertion is true but Reason is false.
15. What was the life expectancy at birth in India During the British rule, there were hardly any Capital goods

BASED
on the eve of Independence? industries to promote further Industrialisation in India.
(a) 44 years (b) 50 years This was done to ensure that India remained dependent for
their Capital goods requirements.
(c) 60 years (d) All of these [Ans. (a)
5. Assertion: During the British rule, there was a
16. Where was the first iron and steel company huge export surplus due to excess exports.
established? Reason: The British government maintained
(a) Kolkata (b) Jamshedpur monopoly control over India's foreign trade and
(c) Patna (d) Ranchi [Ans. (b) used this export surplus for India's development.
Ans. (c) Assertion is true but Reason is false.
 Assertion-Reason Questions Huge amounts of goods were being exported to Britain each year
DIRECTION: Read the following statements— resulting in an export surplus (excess of exports over imports)
Assertion (A) and Reason (R). Choose one of the correct but it did not result in any flow of gold or silver into India.
alternatives given below: 6. Assertion: The public sector remained confined
(a) Assertion and Reason both are correct statements to some departmental undertakings like railways,
and Reason is correct explanation for Assertion. communications etc.
(b) Assertion and Reason both are correct statements Reason: The restricted growth of the public
but Reason is not correct explanation for sector was a drawback for the industrial sector.
Assertion. Ans. (a) Assertion and reason both are correct
(c) Assertion is true but Reason is false. statements and reason is correct explanation for
(d) Assertion is false but Reason is true. assertion.
 C–18 n Shiv Das Chapterwise Question Bank (Economics XII)

7. Assertion: Development of railways enhanced Ans. (a) Assertion and reason both are correct
commercialization of agriculture. statements and reason is correct explanation for
Reason: The British government developed assertion.
infrastructure in India to serve their own colonial 13. Assertion: GDP and per capita income of the
interests. country were very low during the British rule
Ans. (a) Assertion and reason both are correct Reason: Progress in social infrastructure and
statements and reason is correct explanation for not economic infrastructure contributed greatly
Indian Economy on the Eve of Independence

assertion. towards it.

8. Assertion: On the eve of Independence, both Ans. (c) Assertion is true but Reason is false.
birth rate and death rate were very high. During the British rule, the Indian economy was stagnant
Reason: Life Expectancy was also high at 68 which is evident from the fact that the growth rate of output
years compared to the present 44 years was less than 2% and of per capita income about 0.5% per
annum.
Ans. (c) Assertion is true but Reason is false.
This was because India was then in a state of backwardness.
On the eve of independence, both birth rate and death rate
 Case Based Questions
both were very high at 48 and 40 per thousand persons 1. Read the para given below and answer the
respectively. questions that follow:
9. Assertion: The discriminatory tariff policy Even as the country’s world famous handicraft
followed by the British led to the decline of Industries declined, no corresponding modern
Indian handicrafts. industrial base was allowed to come up to
Reason: The composition of exports and imports take the place of pride so long enjoyed by the
of the Indian economy made it backward and former. The primary motive of the colonial
stagnant. government behind this policy of systematic
Ans. (b) Assertion and reason both are correct

s
deindustrialisation was to reduce India to the

a
statements but reason is not correct explanation status of a mere exporter of important raw

iv D
for assertion. materials for the upcoming modern industries in
Under this discriminatory policy, export of raw materials

Sh
Britain and to turn India into a sprawling market
from India and imports of finished goods to India were made
tariff free while heavy duties were imposed on the export of for the finished products of Britain’s modern
Indian handicrafts. industries so that their continued expansion
10. Assertion: Indian economy, under the British could be ensured to the maximum advantage of
Colonial rule, remained fundamentally agrarian. their home country.
Reason: Commercialization of agriculture, land In the unfolding economic scenario, the decline
settlement system and partition of the country of the indigenous handicraft Industries created
adversely affected Indian agriculture. not only massive unemployment in India but also
Ans. (a) Assertion and reason both are correct a new demand in the Indian consumer market
statements and reason is correct explanation for which was profitably met by the increasing
assertion. imports of cheap manufactured goods from
11. Assertion: The large import surplus generated Britain.
during the colonial period came at a huge cost to India was forced to open its large markets to
the Indian economy. British goods which could be sold in India
Reason: This created scarcity of essential without any tariff or duties compared to local
commodities in the domestic market and did Indian producers who were heavily taxed. In
not result in any flow of gold and silver into our Britain, protectionist policies such as bans and
country. high tariffs or duties were implemented to restrict
Ans. (d) Assertion is false but Reason is true. Indian goods, specially textiles, from being sold
There was export surplus (excess of exports over imports) there, whereas raw cotton was imported from
throughout the colonial period for which there was no India without tariffs to Britain factories which
corresponding return of money. manufactured textiles. British economic policies
12. Assertion: During the British rule, in agriculture, gave them a monopoly over India's vast markets
low productivity resulted in low production. and raw materials such as cotton.

Reason: Owners of the soil were different from (i) The decline of the handicraft industry was
the tillers of the soil who had no incentive to caused due to:
increase land productivity. (a) Discriminatory policies
(b) Low demand
 Competency Based Questions (CBQs) n C–19

(c) Indian imports (iii) Match the following:

(d) Export surplus
Ans. (a) Discriminatory policies Column I Column II
(ii) TISCO was established in ________. 1. Female literacy rate A. Less than 2%
(a) 1809 (b) 1907 2. Year of the great divide B. 1850
(c) 1908 (d) 1806
Ans. (b) 1907 3. Introduction of Railways C. About 7%
in India
(iii) An industry that produces machines for
4. India's annual growth D. 1921
production of goods meant for consumption is
rate during British
called ________ goods industry.
period

COMPETENCY
(a) Capital (b) Consumer
(c) Final (d) None of these (a) 1-C, 2-D, 3-B, 4-A
Ans. (a) Capital (b) 1-B, 2-A, 3-D, 4-C
(iv) Which industry suffered a setback due to the (c) 1-C, 2-D, 3-A, 4-B
partition of the country in 1947? (d) 1-A, 2-D, 3-B, 4-A
(a) handicraft (b) jute Ans. (a) 1-C, 2-D, 3-B, 4-A
(c) cotton (d) both (b) and (c) (iv) The infant mortality rate at the time of
Ans. (d) both (b) and (c) Independence was ________ per thousand in
2. Read the para given below and answer the contrast to the present infant mortality rate of
questions that follow: ___­_____ per thousand
The details of the demographic condition (a) 218, 60 (b) 381, 63
regarding the population of British India were (c) 218, 63 (d) 381, 60
primarily obtained through a Census in 1881. Ans. (c) 218, 63

s
Though suffering from several conditions, it 3. Read the para given below and answer the

a
unveiled the unevenness in the growth of Indian

iv D
questions that follow:
population. Consequently, in every ten years, India’s economy under the British Colonial

Sh
such census procedures were conducted. Prior to rule remained fundamentally agrarian. About
1921, India was in the initial step of demographic 85% of the country’s population lived mostly in
transition. The second step of transition started villages and derived their livelihood directly or
after 1921. indirectly from agriculture. However, despite
At the time of independence, neither the total being the occupation of such a large population,
population nor its growth rate was very high. the agricultural sector continued to experience
Despite this, the social development indicators stagnation and deterioration. This stagnation
were not very promising. was mainly due to the various systems of land
The overall literacy level was less than 16% out settlement, particularly the zamindari system.

BASED
of which the female literacy level was negligible Under this system, the profit accruing out of the
at about 7%. Life expectancy was quite low at agricultural sector went to the zamindars instead
about 44 years as compared to the present 69 of the cultivators who did nothing to improve
years. There was a lack of public health facilities the condition of agriculture. To a large extent,
which led to widespread water and air borne the terms of the revenue settlement were also
diseases.
responsible for the zamindars adopting this
(i) _________ refers to an average number of years
attitude. Other factors responsible for the low
that a person can expect to live.
levels of agricultural productivity were low
(a) infant mortality rate
levels of technology, lack of irrigation facilities
(b) life expectancy
and negligible use of fertilisers. Despite some
(c) death rate
progress made in irrigation, India's agriculture
(d) birth rate
Ans. (b) life expectancy was starved of investment in terracing, flood
control, drainage and desalinisation of soil.
(ii) The purpose of the British rule in India was to:
(i) Commercialisation of agriculture resulted in
(a) develop the Indian economy
shifting of agricultural production from _____
(b) develop the world economy
(c) promote British interest crops to ______ crops.
(d) accelerate the process of industrialization in (a) food, cash (b) Wheat, Rice
India (c) Both (a) & (b) (d) Neither (a) nor (b)
Ans. (a) food, cash
Ans. (c) promote British interest
 C–20 n Shiv Das Chapterwise Question Bank (Economics XII)

(ii) The main reason for stagnation in agriculture the factories of Britain. More than half of India's
was: foreign trade was restricted to Britain while the
(a) Commercialisation of agriculture. rest was allowed with a few other countries. The
(b) decline of handicraft Industries. opening of the Suez Canal further intensified
(c) discriminatory trade policies. British control over India's foreign trade. The
(d) land settlement system. most important characteristic of India's foreign
Ans. (d) land settlement system. trade throughout the colonial period was the
Indian Economy on the Eve of Independence

(iii) Match the following choosing the correct generation of a large export surplus which came
reason: at a huge cost to the country's economy.
(i) Which of the following is not a feature of
Column I Column II India's foreign trade during the British rule:
1. Low level of A. Fertile and (a) The export surplus generated was used for
agricultural productive land India’s benefit.
production on went to Pakistan (b) India was an exporter of primary products.
the eve of during partition. (c) Imports of Britain’s manufactured goods
independence were duty-free.
B. Low contribution (d) India imported consumer goods like cotton,
of industrial sector silk etc.
Ans. (a) The export surplus generated was used for
to GDP.
India’s benefit.
2. Poor state of C. Exploitative British
(ii) The Suez Canal was opened for transport in:
industrial sector policies.
(a) 1850 (b) 1853
during the
(c) 1869 (d) 1901
British rule. Ans. (c) 1869

a s
D. Commercialisation

D
(iii) Choose the correct pair of statement:
of agriculture.

i v
Column I Column II

h
(a) 1-B, 2-C (b) 1-C, 2-D

S
(c) 1-A, 2-C (d) 1-D, 2-B 1. India became an A. Capital goods like
Ans. (c) 1-A, 2-C exporter of machinery.
(iv) Identify the statement which is not true in the 2. Opening of the B. Primary products
context of the agricultural sector of India during Suez Canal such as cotton, jute,
the British rule: wool etc.
(a) commercialisation of agriculture helped 3. India started C. reduced transporta-
farmers economically. importing tion cost between
(b) agricultural sector was stagnant. India and Britain.
(c) farmers use old and outdated techniques of 4. India's foreign D. It also traded with
production. trade was mainly China, Ceylon and
(d) because of the terms of revenue settlement, with Britain Persia.
we are also responsible for the backward
state of agriculture. (a) 1-A (b) 2-B
Ans. (a) commercialisation of agriculture helped (c) 3-C (d) 4-A
Ans. (d) 4-A
farmers economically.
4. Read the para given below and answer the (iv) The large export surplus generated throughout
questions that follow: the colonial period was also used to pay for the
India has been an important trading nation ________ of ________ items.
since ancient times. But the restrictive policies of (a) Import, visible (b) Import, invisible
commodity production, trade and tariff pursued (c) Export, visible (d) Export, invisible
Ans. (b) Import, invisible.
by the colonial government adversely affected
the structure, composition and volume of India's 5. Read the para given below and answer the
foreign trade. Consequently, India became an questions that follow:
exporter of primary products such as raw silk, Under the colonial regime, basic infrastructure
cotton, wool, sugar etc. and an importer of such as railways, ports, water transport, posts
finished consumer goods like cotton, silk and and telegraphs did develop. However, the real
capital goods like light machinery produced in motive behind this development was not to
 Competency Based Questions (CBQs) n C–21

provide basic amenities to the people but to (c) development of industries

sub serve various colonial interests. The roads (d) construction of roads
that were built primarily served the purposes of Ans. (c) development of industries

mobilising the army within India and drawing (ii) India benefited from the development of
out raw materials from the countryside to the Railways in the following ways:
nearest railway station or to the port, to send this (a) expansion of foreign trade
to England or other lucrative foreign destinations. (b) helped in the process of industrialisation
Introduction of the railways was considered as (c) helped the people to travel from one place to
the most important contribution by the British. another
The railways affected the structure of the Indian (d) both (b) and (c)
economy in more than one way. It enabled people Ans. (d) both (b) and (c)

COMPETENCY
to undertake long-distance travel and thereby (iii) Arrange the following events of India before
break geographical and cultural barriers. It also independence in a chronological order:
fostered commercialisation of Indian agriculture I. opening of the Suez Canal
which adversely affected the self sufficiency of II. second stage of demographic transition
the village economies in India. The volume of III. introduction of Railways
India’s exports undoubtedly expanded but its IV. first census of British India
benefits rarely accrued to the Indian people. The (a) I. II. III, IV (b) II, I, IV, III
social benefits, which the Indian people gained (c) III, I, IV, II (d) I, III, IV, II
owing to the introduction of the railways, were Ans. (c) III, I, IV, II
thus outweighed by the country's huge economic (iv) During the colonial period the ________ sector
loss. accounted for the largest share of the workforce.
(i) Following is not a positive contribution made (a) Industrial (b) Service

s
by the colonial government: (c) agricultural (d) Agricultural

a
(a) Telegraph and postal services

iv D
Ans. (c) agricultural
(b) Introduction of railways

Sh
----------

BASED
 SKV VIDHYAASHRAM SEN. SEC.SCHOOL
(Affiliated to CBSE vide No-1930 454)

OBJECTIVE QUESTION BANK

Grade/Section: XII COMMERCE
Subject: Accountancy

PART A

CHAPTER 3

CH – 3 MCQs CHANGE IN PROFIT SHARING RATIO

A. Multiple Choice Questions

1. Any change in the relationship of existing partners which results in an
end of the existing agreement and enforces making of new· agreement is
called:
(a) Revaluation of partnership
(b) Reconstitution of partnership
(c) Realisation of partnership
(d) None of the above
2. The ratio in which a partner surrenders his share in favour of a partner is
known as:
(a) New profit-sharing ratio
(b) Sacrificing Ratio
(c) Gaining Ratio
(d) Capital Ratio
3. The ratio in which a partner receives a rise in his share of profits is known as:
(a) New Ratio
(b) Sacrificing Ratio
(c) Capital Ratio
(d) Gaining Ratio

4. Reserves and accumulated profits are transferred to partners ' capital

accounts at the time of reconstitution in:
(a) Old profit-sharing ratio
 (b) Sacrificing Ratio
(c) Gaining ratio
(d) New profit-sharing ratio
5. Increase and decrease in the value of assets and liabilities are recorded
through:
(a) Partners' Capital Account
(b) Revaluation Account
(c) Profit and Loss Appropriation Ne
(d) Balance Sheet
6. In which of the following case, revaluation accou nt is debited?
(a) Increase in value of asset
(b) Decrease in value of asset
(c) Decrease in value of liability
(d) No change in value of assets.
7. In which of the following cases, revaluation account is credited?
(a) Decrease in value of liability
(b) Increase in value of liability
(c) Decrease in value of asset
(d) No change in value of liability
8. Partner's capital account is credited when there is
(a) Profit on revaluation
(b) transfer of general reserve
(c) transfer of accumulated profits
(d) All of the above
9. Sacrificing ratio is the difference between :
(a) New ratio and old ratio
(b) Old ratio and new ratio
(c) New ratio and gaining ratio
(d) Old ratio and gaining ratio

10. A and B are partners in a firm sharing profits in the ratio of 3 : 2. They decided
to share future profits equally. Calculate A’s gain or sacrifice
(a) 2/10 (sacrifice)
(b) 5/10 (gain)
(c) 1/10 (Gain)
 (d) 1/10 (sacrifice)
11. In case of change in profit-sharing ratio, the gaining partner must compensate
the sacrificing partners by paying the proportional amount of
(a) capital
( b) cash
(c) goodwill
(d) none of the above
12. In case of change in profit-sharing ratio, the accumulated profits are
distributed to the partners in
(a) new ratio
(b) old ratio
(c) sacrificing ratio
(d) equal ratio
13 R; S and T sharing profits and losses in the ratio of 1:2:3, decided to share
future profit and losses equally. They also decided to adjust the following
accumulated profits, losses and reserves without affecing their book figures,
by passing a single adjustment entry:
General Reserve 40000
Profit and Loss A/c 30000
Share .Issue expenses 10000
The necessary .adjustment entry will be:
(a) Dr. R and Cr. T by < I 0,000
(b) Dr. T and Cr. R by < 10,000
(c) Dr. S and Cr. R by < 10,000
(d) Dr.R and Cr. S by < 10,000

14. U V and W are partners sharing profits in the ration of 2:3:5. They also decide
to record the effect of the following revaluations and reassessments without
affecting the book values of assets and liabilities by passing a single
adjustment entry:

Book Value (Rs) Revised Value (Rs)

Land and Building 3,00,000 3,50,000
Furniture 1,50,000 1,00,000
Sundry Creditors 60,000 20,000
 Outstanding Salaries 10,000 15,000

The single adjustment entry will

(a) Dr. W and Cr. U by 10,500
(b) Dr. U and Cr. W by Rs. 10,500
(c) Dr. V and Cr. U by Rs. 10,500
(d) Dr. W and Cr. V by Rs. 10,500
15. X,Y and Z are partners sharing profits and losses in the ratio of 5:3:2.They
decide to share the future profits in the ratio of 3:2:1. Workmen compensation
reserve appearing in the balance sheet on the date if no information is
available for the same will be:
a) Distributed among the partners in old profit sharing ratio
b) Distributed among the partners in new profit sharing ratio
c) Distributed among the partners in capital ratio
d)Carried forward to new balance sheet without any adjustment
16.A,B and C were are partners in a firm sharing profits in the ratio of 3:4:1 .They
decided to share profits equally w.e.f from 1 .4.2019. On that date the profit
and loss account showed the credit balance of 96,000.instead of closing the
profit and loss account ,it was decided to record an adjustment entry reflecting
the change in profit sharing ratio .In the journal entry:
a) Dr. A by 4,000; Dr. B by 16,000; Cr C by 20,000
b) Cr. A by 4,000; Cr. B by 16,000; Dr C by 20,000
c) Cr. A by 16,000; Cr. B by 4,000; Dr C by 20,000
d) Dr. A by 16,000; Dr. B by 4,000; Cr C by 20,000
17. ……..should compensate …………..in the case of reconstitution of the firm.
18.Increase in the value of assets and decrease in the value of liabilities result in
……..for the existing partners and should be ……….to P/L Adjustment a/c
State whether True or False
19.A partnership is reconstituted due to change in profit sharing ratio
20. A,B and C are sharing profits in the ratio of 3:2:1. They decided to share equally
in future .B’s has neither sacrificed nor gained .

[Ans. I.(b), 2. (b) 3. (d), 4. (a) 5. (b) 6. (b), 7. (a), 8. (d), 9.. (b), 10. (d),
11..(c), 12. (b) 13(a) 14. (b) 15,(a) 16(b) 17.Gaining partner, Sacrificing
partner 18.gain,credited 19.true 20.True
 SKV VIDHYAASHRAM SEN. SEC.SCHOOL
(Affiliated to CBSE vide No-1930454)

OBJECTIVE QUESTION BANK

Grade/Section: XII COMMERCE
Subject: Accountancy
PART A
Chapter 4:

Ch-4: MCQs VALUATION OF GOODWILL

A. Multiple Choice Questions

1. Goodwill i s __ __ _
( a ) tangible asset
(b) intangible asset
(c) fictitious asset
(d) both (b) & (c)
2. Goodwill of the firm on the basis of 2 years' purchase of average profit of the last 3
years is Rs. 25,000. Find average profit.
(a) Rs. 50,000
(b) Rs. 25,000
( c ) Rs. 10,000
(d) Rs. 2500
3. Calculate the value of goodwill at 3 years' purchase when: Capital employed Rs.
2,50,000; Average profit Rs. 30,000 and normal rate of return is I0%.
(a) Rs. 3000 (b) Rs. 25,000 (c) Rs. 30,000 (d) Rs. 5,000
4. What are super profits
a)Actual profit – Normal Profit b) Normal Profit - Actual profit
c) Actual profit + Normal Profit d)None of the above

5. The net assets of the firm including fictitious assets of 5,000 are 85,000.The net
liabilities of the firm are 30,000.The normal rate of return is 10% and the average profits
of the firm are 8,000.Calculate the goodwill as per capitalization of super profits.
(a) Rs.20,000 (b) Rs. 30,000 (c) Rs. 25,000 (d) None of the above

6. Which of the following items are added to previous year’s profits for finding normal
profits for valuation of goodwill.?
a)Loss on sale of fixed assets b) Loss due to fire, earthquake etc
c) Undervaluation of closing stock d) All of the above

7.Under which method of valuation of goodwill, normal rate of return is not considered?
a)Loss on sale of fixed assets b) Loss due to fire, earthquake etc
c) Undervaluation of closing stock d) All of the above

8. Following are the methods of calculating goodwill except:

a)Super profit method b) Average profit method
c) Weighted Average profit method d) Capital profit method
9. The excess amount which the firm can get on selling its assets over and above the
saleable value of its assets is called :
a)Surplus b) Super profits
c) Reserve d) Goodwill
10. When Goodwill is not purchased goodwill account can :
(a) Never be raised in the books
(b) Be raised in the books
(c)Be partially raised in the books
(d)Be raised as per the agreement of the partners
11. The goodwill of the firm is not affected by:
(a) Location of the firm
(b) reputation of the firm
(c)Better customer services
(d)None of the above
12.Weighted average profit method of calculating goodwill is used when:
(a) Profits are not equal
(b) Profits show a trend
(c) Profits are fluctuating
(d)None of the above
13. Capital invested in a firm is 5,00,000.Normal rate of return is 10% .Average profit of
the firm are 64,000(after an abnormal loss of 4,000).Value of goodwill at four times the
super profits will be:
(a) Rs.72,000 (b) Rs. 40,000 (c) Rs. 2,40,000 (d) 1,80,000

14.Under ---------- method ,goodwill is the excess of capitalized value of business over
actual capital employed.

15. The value of goodwill is based on ----------- judgment of the valuer .

16.When the value of goodwill of the firm is not given but has to be inferred on the basis
of the net worth of the firm ,it is called……………..
17.Goodwill is not valued during ………….
18.If Super profit of a firm is 10,000,its value of goodwill will be ………….if rate of
return is 8%
State true or false
19. Location of business does not affect the goodwill of business.
20. “Average profit method” takes into consideration the future maintainable profits.
21.Goodwill can be sold in part.
22. Purchased goodwill may arise on acquisition of an existing business concern.
23. Self-Generated goodwill is recorded in the books of accounts as some consideration
is paid for it
24. Goodwill is a fictitious asset
25.Goodwill is valued during dissolution of a firm

1. (b), 2. (d), 3. (d) ,4(a), 5(b), 6(d) 7.c, 8.d, 9(d), 10 (a), 11(b), 12 (b)
13 (a) 14Capitalisation of average profit , 15.Subjective 16. Hidden
goodwill 17. Dissolution of the firm
18 1,25,000 19.False, 20.True, 21.False, 22.True , 23. False, 24 False, 25 False
 CH – 5: Multiple Choice Questions/Objective Type Questions: Admission of a Partner

Q. 1 Which of the following is not the reconstitution of partnership?

a) Admission of a partner
b) Dissolution of Partnership
c) Change in Profit Sharing Ratio
d) Retirement of a partner

Q. 2 On the admission of a new partner:

a) Old partnership is dissolved

b) Both old partnership and firm are dissolved
c) Old firm is dissolved
d) None of the above

Q. 3 Sacrificing ratio is used to distribute ------------------ in case of admission of a partner.

a) Goodwill
b) Revaluation Profit or Loss
c) Profit and Loss Account (Credit Balance)
d) Both b and c

Q. 4 “At the time of admission, old partnership comes to an end”. Is the statement true or false?

Q. 5 Himanshu and Naman share profits & losses equally. Their capitals were Rs.1,20,000 and
Rs. 80,000 respectively. There was also a balance of Rs. 60,000 in General reserve and
revaluation gain amounted to Rs. 15,000. They admit friend Ashish with 1/5 share.
Ashish brings Rs.90,000 as capital. Calculate the amount of goodwill of the firm.
a. Rs.1,00,000
b. Rs. 85,000
c. Rs.20,000
d. None of the above
Q. 6 Yash and Manan are partners sharing profits in the ratio of2:1. They admit Kushagra into
partnership for 25% share of profit. Kushagra acquired the share from old partners in the
ratio of 3:2. The new profit sharing ratio will be:
a) 14:31:15
b) 3:2:1
c) 31:14:15
d) 2:3:1
Q. 7 A and B are partners sharing profit and losses in ratio of 5:3. C is admitted for 1/4 th share.
On the date of reconstitution, the debtors stood at Rs 40,000, bill receivable stood at Rs.
10,000 and the provision for doubtful debts appeared at Rs. 4000. A bill receivable, of Rs
10,000 which was discounted from the bank, earlier has been reported to be dishonored.
The firm has sold, the debtor so arising to a debt collection agency at a loss of 40%. If bad
 debts now have arisen for Rs 6,000 and firm decides to maintain provisions at same rate as
before then amount of Provision to be debited to Revaluation Account would be:
a) Rs 4,400
b) Rs 4,000
c) Rs 3,400
d) None of the above

Q. 8 Heena and Sudha share Profit & Loss equally. Their capitals were Rs.1,20,000 and Rs.
80,000 respectively. There was also a balance of Rs. 60,000 in General reserve and
revaluation gain amounted to Rs. 15,000. They admit friend Teena with 1/5 share. Teena
brings Rs.90,000 as capital. Calculate the amount of goodwill of the firm.
a) Rs.85,000
b) Rs.1,00,000
c) Rs.20,000
d) None of the above
Q. 9 “As per Section 26 of the Indian Partnership Act, 1932, a person can be admitted as a new
partner if it is agreed in the Partnership Deed”. Is the statement True or False?

Q. 10 Which of the following is not true with respect to Admission of a partner?

a) A new partner can be admitted if it is agreed in the partnership deed.

b) If all the partners agree, a new partner can be admitted.
c) A new partner has to bring relatively higher capital as compared to the existing partners
d) A new partner gets right in the assets of the firm

Q. 11 As per ---------, only purchased goodwill can be shown in the Balance Sheet.

a) AS 37
b) AS 26
c) Section 37
d) AS 37

Q. 12 “A newly admitted partner cannot pay his share of the goodwill to the sacrificing partners
privately”. Is the statement True or False?

Q. 13 “Unless agreed otherwise, Sacrificing Ratio of the old partners will be the same as their
Old Profit Sharing Ratio”. Is the statement True or False?

Q. 14 A, and B are partners sharing profits in the ratio of 2:3. Their balance sheet shows
machinery at ₹2,00,000; stock ₹80,000, and debtors at ₹1,60,000. C is admitted and the
new profit sharing ratio is 6:9:5. Machinery is revalued at ₹1,40,000 and a provision is
made for doubtful debts @5%. A’s share in loss on revaluation amount to ₹20,000.
Revalued value of stock will be:
 a) ₹62,000
b) ₹1,00,000
c) ₹60,000
d) ₹98,000

Q. 15 At the time of admission of a partner, Employees Provident Fund is:

a) Distributed to partners in the old profit sharing ratio
b) Distributed to partners in the new profit sharing ratio
c) Adjusted through gaining ratio
d) None of the above
Q. 16 If at the time of admission if there is some unrecorded liability, it will be ------------- to --
------------ Account.
a) Debited, Revaluation
b) Credited, Revaluation
c) Debited, Goodwill
d) Credited, Partners’ Capital

Q. 17 At the time of admission of a new partner, the balance of Workmen Compensation

Reserve will be transferred to:
a) Old partners in the old profit sharing ratio
b) Sacrificing partners in the sacrificing ratio
c) Revaluation Account
d) All partners in the new profit sharing ratio
Q. 18 The firm of P, Q and R with profit sharing ratio of 6:3:1, had the balance in General
Reserve Account amounting Rs. 1,80,000. S joined as a new partner and the new profit
sharing ratio was decided to be 3:3:3:1. Partners decide to keep the General Reserve
unchanged in the books of accounts. The effect will be:
a) P will be credited by Rs. 54,000
b) P will be debited by Rs. 54,000
c) P will be credited by Rs. 36.000
d) P will be credited by Rs. 36,000
Q. 19 Which statement is true with respect to AS-26?
a) Purchased goodwill can be shown in the Balance Sheet
b) Revalued goodwill can be shown in the Balance Sheet
c) Both purchased goodwill and revalued can be shown in the Balance Sheet
d) None of the above
Q. 20 Premium brought by newly admitted partner should be:
a) Credited to sacrificing partners
b) Credited to all partners in the new profit sharing ratio
 c) Credited to old partners in the old profit sharing ratio
d) Credited to only gaining partners
Q. 21 Sacrificing ratio is calculated because:
a) Profit shown by Revaluation Account can be credited to sacrificing partners
b) Goodwill brought in by the incoming partner can be credited to the new partner
c) Goodwill brought in by the incoming partner can be credited to the sacrificing partners
d) Both a and c
Q. 22 Aryaman and Bholu are partners sharing profit and losses in ratio of 5:3. Chirag is
admitted for 1/4th share. On the date of reconstitution, the debtors stood at Rs 40,000, bill
receivable stood at Rs. 10,000 and the provision for doubtful debts appeared at Rs. 4000.
A bill receivable, of Rs 10,000 which was discounted from the bank, earlier has been
reported to be dishonored. The firm has sold, the debtor so arising to a debt collection
agency at a loss of 40%. If bad debts now have arisen for Rs 6,000 and firm decides to
maintain provisions at same rate as before then amount of Provision to be debited to
Revaluation Account would be:
a. Rs 4,400
b. Rs 4,000
c. Rs.3,400
d. None of the above
Q. 23 Revaluation Account is a ------------ Account.

a) Real
b) Nominal
c) Personal
d) Liability

Q. 24 Match the following:

i. Sacrificing Ratio A Nominal Account

ii. Gaining Ratio B Reconstitution of Partnership
iii. Revaluation Account C New Ratio – Old Ratio
iv. Admission of a Partner D Old Ratio – New Ratio

a) i- B, ii-C, iii-A, iv-D

b) i- D, ii-B, iii-A, iv-C
c) i- D, ii-C, iii-A, iv-B
d) i- D, ii-C, iii-B, iv-A
Q. 25 Match the following with respect to journal entries for treatment of goodwill.

i. Incoming partner brings his share of A No Entry

goodwill
ii. Incoming partner does not bring his share B Premium for Goodwill A/c Dr.
 of goodwill Incoming Partner’s Capital A/c Dr.
To Sacrificing Partners Capital A/c
iii. Incoming partner pays his share of C Premium for Goodwill A/c Dr.
goodwill privately To Sacrificing Partners Capital A/c
iv. Incoming partner brings only a part of his D Incoming Partner’s Capital A/c Dr.
share of goodwill To Sacrificing Partners Capital A/c

a) i- B, ii-C, iii-A, iv-D

b) i- C, ii-D, iii-A, iv-B
c) i- D, ii-C, iii-A, iv-B
d) i- D, ii-C, iii-B, iv-A

Answers
1. b
2. a
3. a
4. True
5. b
6. c
7. c
8. a
9. False
10.c
11.b
12. False
13. True
14.c
15.d
16.a
17.a
18.a
19.a
20.a
21.c
22.c
23.b
24.c
25. b
 SKV VIDHYAASHRAM SEN. SEC.SCHOOL
(Affiliated to CBSE vide No-1930 454)

OBJECTIVE QUESTION BANK

Grade/Section: XII COMMERCE
Subject: Accountancy
PART A
Chapter 9:

Accounting for Share Capital

Question 1.
Reserve share capital means :
(a) Part of authorised capital to be called at the beginning
(b) Portion of uncalled capital to be called only at liquidation
(c) Over subscribed capital
(d) Under subscribed capital

Answer
Answer: (b) Portion of uncalled capital to be called only at liquidation

Question 2.
When full amount is due on any call but it is not received, then the short fall is
debited to :
(a) Calls-in-advance
(b) Calls-in-arrear
(c) Share Capital
(d) Suspense Account

Answer
Answer: (b) Calls-in-arrear

Question 3.
The difference between subscribed capital and called up capital is called :
(a) Calls-in-arear
(b) Calls-in-advance
(c) Uncalled capital
(d) None of these

Answer
Answer: (c) Uncalled capital

Question 4.
Which statement is issued before the issue of shares ?
(a) Prospectus
(b) Articles of Association
(c) Memorandum of Association
(d) All of these

Answer
Answer: (d) All of these

Question 5.
Company can utilise securities premium for :
(a) Writing off loss incurred on revaluation of asset
(b) Issuing fully paid bonus shares
(c) Paying divided
(d) Writing off trading loss

Answer
Answer: (b) Issuing fully paid bonus shares

Question 6.
When a company issues fully paid shares to promoters
for their services, the journal entry will be:
(a) Bank A/c Dr.
To Share Capital A/c
(b) Good will A/c Dr.
To Share Capital A/c
(c) Promoters Personal A/c Dr.
To Share Capital A/c
(d) Promotion Expenses A/c Dr.
To Share Capital A/c
Answer
Answer: (b) Goodwill A/c Dr.
To Share Capital A/c

Question 7.
When a company issues shares at a premium, amount of premium may be received
by the company :
(a) Along with application money
(b) Along with application money
(c) Along with calls
(d) Along with any of the above

Answer
Answer: (d) Along with any of the above

Question 8.
Share Application Account is :
(a) Personal Account
(b) Real Account
(c) Nominal/ Account
(d) None of these

Answer
Answer: (a) Personal Account

Question 9.
Secrities Premium can not be applied :
(a) For paying dividend to members
(b) For issuing bonus shares to members
(c) For writing off preliminary expenses of company
(d) For writing off discount on issue of debentures

Answer
Answer: (a) For paying dividend to members
Question 10.
A joint stock company is :
(a) An artificial legal person
(b) Natural person
(c) A general person
(d) None of these

Answer
Answer: (a) An artificial legal person

Question 11.
Equity shareholders are :
(a) Customers
(b) Creditors
(c) Debtors
(d) Owners

Answer
Answer: (d) Owners

Question 12.
Reserve capital means :
(a) A part of subscribed uncalled capital
(b) Reserve Profit
(c) A part of Capital Reserve
(d) A part of Capital Redemption Reserve

Answer
Answer: (a) A part of subscribed uncalled capital

Question 13.
Securities Premium is shown under which head in the Balance Sheet ?
(a) Reserve and Surplus
(b) Miscellaneous Expenditure
(c) Current Liabilities
(d) Share Capital

Answer
Answer: (a) Reserve and Surplus

Question 14.
Shares may be issued :
(a) At par value
(b) At FYemimum
(c) At Discount
(d) Both (a) & (b)

Answer
Answer: (d) Both (a) & (b)

Question 15.
Capital included in the liabilities of a company is called :
(a) Authorised Capital
(b) Issued Capital
(c) Subscribed Capital
(d) Paid-up Capital

Answer
Answer: (d) Paid-up Capital

Question 16.
An issue of shares which is not a public issue but offered to a selected group of
persons is called :
(a) Public offer
(b) Private placement of shares
(c) Initial public offer
(d) None of these

Answer
Answer: (d) None of these
Question 17.
If a share of ₹ 10 on which ₹ 8 has been called and ₹ 6 is paid is forfeited, the
Share Capital Account should be debited with :
(a) ₹ 8
(b) ₹ 10
(c) ₹ 6
(d) ₹ 2

Answer
Answer: (a) ₹ 8

Question 18.
When shares are forfeited, the Share Capital Account is debited with:
(a) Nominal value of Shares
(b) Market value of Shares
(c) Called-up value of Shares
(d) Paid-up value of Shares

Answer
Answer: (c) Called-up value of Shares

Question 19.
If the loss on reissue of shares is less than the amount forfeited, the ‘surplus’ or profit
is transferred to :
(a) Capital Reserve
(b) Revenue Reserve
(c) Profit & Loss A/c
(d) None of these

Answer
Answer: (a) Capital Reserve

Question 20.
J. Ltd. re-issue 2,000 shares which where forfeited by crediting share forfeiture
account by ₹ 3,000. These shares were re-issued at ₹ 9 per share. The amount
transferred to capital reserve will be :
(a) ₹ 3,000
(b) ₹ 2,000
(c) ₹ 1000
(d) Nil

Answer
Answer: (c) ₹ 1000

Question 21.
If a share of ₹ 10 on which ₹ 8 has been paid up is forfeited, it canbe reissued at
the minimum price of…….
(a) 10 Rs. per share
(b) 8 Rs. per share
(c) 5 Rs. per share
(d) 2 Rs. per share

Answer
Answer: (d) 2 Rs. per share

Question 22.
Z & Co. forfeited 100 shares of 10 Rs. each for non-payment of final call of 2 Rs. per
share. All the forfeited shares were re-issued at 9 Rs. per share. What amount will
be transferred to Capital Reserve A/c ?
(a) 700 Rs.
(b) 800 Rs.
(c) 900 Rs.
(d) 1,000 Rs.

Answer
Answer: (a) 700 Rs.

Question 23.
Forfeiture of shares results in the reduction of:
(a) Paid-up Capital
(b) Authorised Capital
(c) Fixed Assets
(d) Reserve Capital

Answer
Answer: (a) Paid-up Capital
Question 24.
Amount of calls in Arrear is :
(a) Added to capital
(b) Deducted from share capital
(c) Shown on the assets side
(d) Shown an the equity and liability side

Answer
Answer: (b) Deducted from share capital

Question 25.
Discount allowed on reissue of forfeited shares is debited to:
(a) Share Capital A/c
(b) Share Forfeiture A/c
(c) Profit & Loss A/c
(d) General Reserve A/c

Answer
Answer: (b) Share Forfeiture A/c

Question 26.
A company has…………
(a) Separate Legal Entity
(b) Perpetual Existence
(c) Limited Liability
(d) All the above

Answer
Answer: (d) All the above

Question 27.
The liability of members in a company is :
(a) Limited
(b) Unlimited
(c) Stable
(d) Fluctuating

Answer
Answer: (a) Limited

Question 28.
Equity shareholders are :
(a) Creditors of the company
(b) Owners of the company
(c) Customers of the company
(d) None of these

Answer
Answer: (b) Owners of the company

Question 29.
Balance of Forfeited Shares Account after reissue of forfeited shares is transferred to
:
(a) Profit & Loss A/c
(b) Capital Reserve Account
(c) General Reserve Account
(d) None of these

Answer
Answer: (b) Capital Reserve Account

Question 30.
Under the provisions of Companies Act, company can issue:
(a) Only equity shares
(b) Only preference shares
(c) Preference shares and equity shares
(d) None of these

Answer
Answer: (c) Preference shares and equity shares
Question 31.
Reight shares are the shares, which :
(a) Are issued to the Direction of the company
(b) Are issued to existing shareholders of the company
(c) Are issued to promoters in consideration of their services
(d) Are issued to the vendors for purchasing assets

Answer
Answer: (b) Are issued to existing shareholders of the company

Question 32.
Total amount of liabilities side includes :
(a) Authorised Capital
(b) Issued Capital
(c) Subscribed Capital
(d) Paid-up Capital

Answer
Answer: (d) Paid-up Capital

Question 33.
A company issues its shares at premium under which Section of Indian Companies
Act, 2013 ?
(a) 78
(b) 79
(c) 52
(d) 53

Answer
Answer: (c) 52

Question 34.
Shares can be forfeited :
(a) For failure to attend meetings
(b) For non-payment of call money
(c) For failure to repay the loan to the Bank
(d) For which shares are pledged as a security

Answer
Answer: (b) For non-payment of call money

Question 35.
Shareholders get:
(a) Interest
(b) Dividend
(c) Commission
(d) Profit

Answer
Answer: (b) Dividend

Question 36.
According to Table E of the Companies Act, 2013 interest on calls in arrears charged
should not exceed :
(a) 5% p.a.
(b) 6% p.a.
(c) 8%p.a.
(d) 10%p.a.

Answer
Answer: (d) 10%p.a.

Question 37.
Premium on issue of shares is a :
(a) Capital Gain
(b) Capital Loss
(c) General Profit
(d) General Loss

Answer
Answer: (a) Capital Gain
Question 38.
Premium on issue of shares is shown on which side of the Balance sheet.
(a) Assets
(b) Liabilities
(c) Both
(d) None of these

Answer
Answer: (b) Liabilities

Question 39.
Share Allotment Account is :
(a) Personal A/c
(b) Real A/c
(c) Nominal A/c
(d) None of these

Answer
Answer: (a) Personal A/c

Question 40.
The portion of the authorised capital which can be called-up only on the liquidation of
the company is called:
(a) Issued Capital
(b) Called-up Capital
(c) Uncalled Capital
(d) Reserve Capital

Answer
Answer: (d) Reserve Capital

Question 41.
Premium on issue of shares can be used for :
(a) Issue of Bonus shares
(b) Distribution of Profit
(c) Transferring to General Reserve
(d) All these

Answer
Answer: (a) Issue of Bonus shares

Question 42.
If equity share of ₹ 10 Rs. each is issued at ₹ 12 each, it is called:
(a) Issued at Par
(b) Issued at Premium
(c) Issued at Discount
(d) None of these

Answer
Answer: (b) Issued at Premium

Question 43.
The maximum capital beyond which a company is not allowed to raise funds, by
issue of shares is called …………..
(a) Issued capital
(b) Reserve capital
(c) Authorised capital
(d) Subscribed capital

Answer
Answer: (b) Reserve capital

Question 44.
As per Table F the maximum rate of interest on calls in advance paid is:
(a) 8% p.a.
(b) 12% p.a.
(c) 5 % p.a.
(d) None of these

Answer
Answer: (b) 12% p.a.
Question 45.
As per the Companies Act, only preference shares, which are redeemable within
…………. can be issued.
(a) 24 years
(b) 22 years
(c) 30 years
(d) 20 years

Answer
Answer: (d) 20 years

Question 46.
Which one of the following is the registered capital of the company ?
(a) Paid-up capital
(b) Uncalled capital
(c) Authorised capital
(d) Issued capital

Answer
Answer: (c) Authorised capital

Question 47.
Dividends are usually paid on :
(a) Authorised Capital
(b) Issued Capital
(c) Called-up Capital
(d) Paid-up Capital

Answer
Answer: (d) Paid-up Capital

Question 48.
If vendors are issued fully paid shares of ₹ 1,00,000 in consideration of net assets of
₹ 1,20,000 the balance of ₹ 20,000 will be credited to :
(a) Goodwill Account
(b) Capital Reserve Account
(c) Vendor’s Account
(d) Profit & Loss Account

Answer
Answer: (b) Capital Reserve Account

Question 49.
Which account should be debited when shows an issued to promoters:
(a) Share Capital A/c
(b) Assets A/c
(c) Promoter’s A/c
(d) Goodwill A/c

Answer
Answer: (d) Goodwill A/c

Question 50.
According to Section 52 of the Compaines Act, the amount in the Securities
Premium Account cannot be used for the purpose of:
(a) Issue of fully Paid Bonus Shares
(b) Writing Off Losses of the Company
(c) Writing off Preliminary Expenses
(d) Writing Off Commission or Discount on Issue of Shares

Answer
Answer: (b) Writing Off Losses of the Company

Question 51.
10,000 equity shares of 10 Rs. each were issued to public at a premium of ₹ 2 per
share payable on allotment.
Applications were received for ₹ 12,000 shares. Amount of securities premium
account will be :
(a) ₹ 20,000
(b) ₹ 24,000
(c) ₹ 4,000
(d) ₹ 1,600
Answer
Answer: (a) ₹ 20,000

Question 52.
A Ltd. purchased a machinery for 1,80,000Rs. for which it is paying by issue of
shares of 100 Rs. each at 20% premium. How many shares will be issued as
consideration. ?
(a) 2,500
(b) 2,000
(c) 1,500
(d) 3,000

Answer
Answer: (c) 1,500

Question 53.
Right Shares are issued to :
(a) Promoters for the Services
(b) Holders of Convertible Debentures
(c) Existing Shareholders
(d) All of the above

Answer
Answer: (c) Existing Shareholders

Question 54.
A company is registered with a share capital of ₹ 1,00,000Rs. divided into ₹ 10,000
shares of ₹ 10 each. Of these shares 9,990 shares are held by Rajeev and 10
Shares are held by Sanjay. In the eye of law it is treated as:
(a) Partnership
(b) Private Company
(c) Public Compancy
(d) Government Company

Answer
Answer: (b) Private Company
Question 55.
Which of the following should be deducted from the called-up capital to find out paid-
up capital:
(a) Calls-in-advance
(b) Calls-in-arrear
(c) Share forfeiture
(d) Discount on issue of shares

Answer
Answer: (b) Calls-in-arrear
 SKV VIDHYAASHRAM SEN. SEC.SCHOOL
(Affiliated to CBSE vide No-1930 454)

OBJECTIVE QUESTION BANK

Grade/Section: XII COMMERCE
Subject: Accountancy
PART B
Chapter 1:

Financial Statements of a Company

Question 1.
Which of the following is the element of financial statements?
(a) Balance Sheet
(b) Profit & Loss A/c
(c) Both (a) and (b)
(d) None of these

Answer
Answer: (c) Both (a) and (b)

Question 2.
Which of the following is not required to be prepared under the Companies Act:
(a) Statement of Profit & Loss
(b) Balance Sheet
(c) Anditor’s Report
(d) Fund Flow Statement

Answer
Answer: (c) Anditor’s Report

Question 3.
Equity ₹ 90,000 Liabilities ₹ 60,000 Profit of the year ₹ 20,000. Then total assets
will be :
(a) ₹ 1.70,000
(b) ₹ 1,50,000
(c) ₹1,10,000
(d) ₹ 80,000

Answer
Answer: (a) ₹ 1.70,000

Question 4.
The reserve which is created for a particular (specific) purpose and which is a charge
against revenue is called:
(a) Capital Reserve
(b) General Reserve
(c) Secret Reserve
(d) Specific Reserve

Answer
Answer: (d) Specific Reserve

Question 5.
An Annual Report is issued by a company to its:
(a) Directors
(b) Authors
(c) Shareholders
(d) Management

Answer
Answer: (c) Shareholders

Question 6.
The profit and loss disclosed by the accounts of a company is:
(a) Transferred to share capital account
(b) Shown under the head of ‘Current liabilities’ and provisions
(c) Shown under the head ‘Reserves and Surplus
(d) None of these

Answer
Answer: (c) Shown under the head ‘Reserves and Surplus
Question 7.
The assets of a business can be classified as :
(a) Fixed and Non-fixed Assets
(b) Tangible and Intangible Assets
(c) Non-Current and Current Asset
(d) None of these

Answer
Answer: (c) Non-Current and Current Asset

Question 8.
The term financial statements includes :
(a) Statement of Profit & Loss
(b) Balance Sheet
(c) Statement of Profit & Loss and Balance Sheet
(d) None of these

Answer
Answer: (c) Statement of Profit & Loss and Balance Sheet

Question 9.
Balance Sheet is a :
(a) Account
(b) Statement
(c) Both (a) and (b)
(d) All the above

Answer
Answer: (b) Statement

Question 10.
Financial statements are the product of accounting process.
(a) First
(b) Second
(c) End
(d) None of these

Answer
Answer: (c) End

Question 11.
Financial statements disclose :
(a) Monetary information
(b) Qualitative information
(c) Non-monetary information
(d) All the above

Answer
Answer: (a) Monetary information

Question 12.
Statement of Profit & Loss is also called………:
(a) Operating Profit
(b) Balance Sheet
(c) Income Statement
(d) Trading Account

Answer
Answer: (c) Income Statement

Question 13.
Preliminary expenses are shown in the Balance Sheet under the head:
(a) Non-current assets
(b) Current assets
(c) Non-current liabilities
(d) Deducted from securities premium reserve

Answer
Answer: (d) Deducted from securities premium reserve
Question 14.
Debit Balance of Profit & Loss Statement will be shown on:
(a) Assets Side of Balance Sheet
(b) Liabilities Side of Balance Sheet
(c) Under the head Reserve & Surplus
(d) Under the head Reserves and Surplus as a negative item

Answer
Answer: (d) Under the head Reserves and Surplus as a negative item

Question 15.
Patents and copyrights fall under the category of:
(a) Current Assets
(b) Liquid Assets
(c) Intangible Assets
(d) None of these

Answer
Answer: (c) Intangible Assets

Question 16.
Goodwill falls under which category of assets:
(a) Current Assets
(b) Tangible Assets
(c) Intangible Assets
(d) None of the above

Answer
Answer: (c) Intangible Assets

Question 17.
Contingent Liabilities are exhibited under the heading:
(a) Fixed Liabilities
(b) Current Liabilities
(c) As a footnote
(d) None of these

Answer
Answer: (c) As a footnote

Question 18.
Provision for Provident Funds is shown in the Balance Sheet of a company under the
head :
(a) Reserves and Surplus
(b) Non-current Liabilities
(c) Provision
(d) Contingent Liabilities

Answer
Answer: (b) Non-current Liabilities

Question 19.
Preliminary Expenses are shown in the Balance Sheet under which head ?
(a) Fixed Assets
(b) Reserves and Surplus
(c) Loans & Advances
(d) None of these

Answer
Answer: (d) None of these

Question 20.
Financial Statements are :
(a) Anticipated facts
(b) Recorded facts
(c) Estimated facts
(d) None of these

Answer
Answer: (b) Recorded facts
Question 21.
The term current assets includes :
(a) Stock
(b) Debtors
(c) Cash
(d) All of these

Answer
Answer: (d) All of these

Question 22.
Which of the following is not a part of financial statement of a company ?
(a) Profit & Loss A/c
(b) Balance Sheet
(c) Ledger Account
(d) Cash Flow Statement

Answer
Answer: (c) Ledger Account

Question 23.
Under which heading of Balance Sheet is general reserve shown:
(a) Miscellaneous Expenditure
(b) Share Capital
(c) Reserves & Surplus
(d) None of these

Answer
Answer: (c) Reserves & Surplus

Question 24.
Current Assets on the Assets side of Balance Sheet of a Company includes:
(a) Sundry Debtors
(b) Cash in hand
(c) Stock
(d) All of these

Answer
Answer: (d) All of these

Question 25.
As per provisions of Companies Act, 2013 under which Section, the final accounts of
a company is prepard :
(a) 128
(b) 210
(c) 129
(d) 212

Answer
Answer: (c) 129

Question 26.
According to which part of Schedule III of the Indian Companies Act, 2013, Indian
companies have to prepare Balance Sheet:
(a) Part 1
(b) Part 2
(c) Part 3
(d) Part 4

Answer
Answer: (a) Part 1

Question 27.
Balance sheet of companies is now prepared in :
(a) Horizontal Form
(b) Vertical Form
(c) Either (a) or (b) Form
(d) None of these

Answer
Answer: (b) Vertical Form
Question 28.
Goodwill of a company is shown on the assets side of the Balance Sheet under the
head.
(a) Current Assets
(b) Non-current Assets
(c) Miscellaneous Expenditure
(d) None of these

Answer
Answer: (b) Non-current Assets

Question 29.
The form of Balance Sheet as per Companies Act, 2013 is:
(a) Horizontal
(b) Horizontal or Vertical
(c) Vertical
(d) None of these

Answer
Answer: (c) Vertical

Question 30.
Which of the following assets is not shown undeer the head ‘Fixed Asset’ in the
Balance Sheet ?
(a) Goodwill
(b) Bills Receivable
(c) Buildings
(d) Vehicle

Answer
Answer: (b) Bills Receivable

Question 31.
Securities Premium Account is shown on the liabilities side in the Balance Sheet
Under heading
(a) Reserves and Surplus
(b) Current Liabilities and Provisions
(c) Share Capital
(d) Contingent Liabilities

Answer
Answer: (a) Reserves and Surplus

Question 32.
Debentures are shown in the Balance Sheet under the head of:
(a) Short-term Loan
(b) Secured Loan
(c) Current Liability
(d) Share Capital

Answer
Answer: (b) Secured Loan

Question 33.
Divident is usually paid :
(a) On Authorised Capital
(b) On Ussued Capital
(c) On Paid-up Capital
(d) On Called-up Capital

Answer
Answer: (c) On Paid-up Capital

Question 34.
Amount set aside to meet losses due to bad debts is called:
(a) Reserve
(b) Provision
(c) Liability
(d) None of these

Answer
Answer: (b) Provision
Question 35.
Which Section of the Companies Act, 2013 requires that the Balance Sheet to be
prepared in prescribed form ?
(a) Section 128
(b) Section 130
(c) Section 129
(d) Section 212

Answer
Answer: (c) Section 129

Question 36.
The prescribe from the Balance Sheet has given in the Schedule:
(a) VI Part I
(b) VI Part II
(c) III Part I
(d) VII Part IV

Answer
Answer: (c) III Part I

Question 37.
Share capital is shown in Balance Sheet under. the head ?
(a) Authorised Capital
(b) Issued Capital
(c) Paid-up Capital
(d) Shareholders’ Funds

Answer
Answer: (d) Shareholders’ Funds
 SKV VIDHYAASHRAM SEN. SEC.SCHOOL
(Affiliated to CBSE vide No-1930 454)

OBJECTIVE QUESTION BANK

Grade/Section: XII COMMERCE
Subject: Accountancy
PART B
Chapter 2

Analysis of Financial Statements

Question 1.
Interpretation of Financial Statements includes:
(a) Criticisms and Analysis
(b) Comparison and Trend Study
(c) Drawing Conclusion
(d) All the above

Answer
Answer: (d) All the above

Question 2.
Horizontal Analysis is also known as :
(a) Dynamic Analysis
(b) Structural Analysis
(c) Static Analysis
(d) None of these

Answer
Answer: (a) Dynamic Analysis

Question 3.
Vertical Analysis is also known as :
(a) Static Analysis
(b) Dynamic Analysis
(c) Structural Analysis
(d) None of these

Answer
Answer: (a) Static Analysis

Question 4.
Comparative Statements are also known as :
(a) Dynamic Analysis
(b) Horizontal Analysis
(c) Vertical Analysis
(d) External Analysis

Answer
Answer: (b) Horizontal Analysis

Question 5.
Common-size Statement are also known as:
(a) Dynamic Analysis
(b) Horizontal Analysis
(c) Vertical Analysis
(d) External Analysis

Answer
Answer: (c) Vertical Analysis

Question 6.
The most commonly used tools for financial analysis are:
(a) Comparative Statements
(b) Common-size Statement
(c) Accounting Ratios
(d) All the above

Answer
Answer: (d) All the above
Question 7.
The analysis of financial statement by a shareholder is an example of:
(a) External Analysis
(b) Internal Analysis
(c) Vertical Analysis
(d) Horizontal Analysis

Answer
Answer: (a) External Analysis

Question 8.
For calculating trend percentages any year is selected as:
(a) Current year
(b) Previous year
(c) Base year
(d) None of these

Answer
Answer: (c) Base year

Question 9.
Tools for comparison of financial statements are :
(a) Comparative Balance Sheet
(b) Comparative Income Statement
(c) Common-size Statement
(d) All the above

Answer
Answer: (d) All the above

Question 10.
Trend ratios and trend percentage are used in :
(a) Dynamic analysis
(b) Static analysis
(c) Horizontal analysis
(d) Vertical Analysis

Answer
Answer: (c) Horizontal analysis

Question 11.
Comparative Financial Statements show:
(a) Financial position of a concern
(b) Earning capacity of a concern
(c) Both of them
(d) None of these

Answer
Answer: (c) Both of them

Question 12.
Comparative financial analysis process shows the comparison between the items of
which statement:
(a) Balance Sheet
(b) Profit & Loss Statement
(c) (a) and (b) both
(d) None of these

Answer
Answer: (c) (a) and (b) both

Question 13.
Which of these are not the method of financial statement analysis ?
(a) Ratio Analysis
(b) Comparative Analysis
(c) Trend Analysis
(d) Capitalisation Method

Answer
Answer: (d) Capitalisation Method
Question 14.
Common-size financial statements are mostly prepared:
(a) In proportion
(b) In percentage
(c) (a) and (b) both
(d) None of these

Answer
Answer: (b) In percentage

Question 15.
Tangible assets of company increased from T 4,00,000 to T 5,00,000. What is the
percentage of change ?
(a) 20%
(b) 25%
(c) 33%
(d) 50%

Answer
Answer: (b) 25%

Question 16.
A company’s shareholders fund was 7 8,00,000 in the year 2015. It because 7
12,00,000 in the year 2016. What is percentage of change ?
(a) 100%
(b) 25%
(c) 50%
(d) 33.3%

Answer
Answer: (c) 50%

Question 17.
A company’s net sales are ₹ 15,00,000; cost of sales is ₹ 10,00,000 and indirect
expenses are ₹ 3,00,000, the amount gross profit will be:
(a) ₹ 13,00,000
(b) ₹ 5,00,000
(c) ₹ 2,00,000
(d) ₹ 12,00,000

Answer
Answer: (c) ₹ 2,00,000

Question 18.
Sales less Cost of goods sold is called :
(a) Operating Profit
(b) Gross Profit
(c) Net Profit
(d) Total Profit

Answer
Answer: (b) Gross Profit

Question 19.
If total assets of a firm are 7 12,00,000 and its non of non-current assets to total
assets ?
(a) 50%
(b) 75%
(c) 25%
(d) 80%

Answer
Answer: (b) 75%

Question 20.
If total assets of a firm are 7 10,00,000 and its non-current assets are 7 6,00,000,
what will be the percentage of current assets on total assets ?
(a) 60%
(b) 50%
(c) 40%
(d) 30%

Answer
Answer: (c) 40%
Question 21.
In a common-size Balance Sheet, total equity and liabilities are assumed to be equal
to :
(a) 1,000
(b) 100
(c) 10
(d) 1

Answer
Answer: (b) 100

Question 22.
Break-even point refers to that point where :
(a) Total Costs are more than Total Sales
(b) Total Costs are less than Total Sales
(c) Total Costs are half of the Total Sales
(d) Total Cost are equal to total sales

Answer
Answer: (d) Total Cost are equal to total sales

Question 23.
Payment of Income Tax is considered as :
(a) Direct Expenses
(b) Indirect Expenses
(c) Operating Expenses
(d) None of these

Answer
Answer: (b) Indirect Expenses

Question 24.
Vertical Analysis is also known as :
(a) Fluctuation Analysis
(b) Static Analysis
(c) Horizontal Analysis
(d) None of these

Answer
Answer: (b) Static Analysis

Question 25.
Financial analysis is useful:
(a) For Investors
(b) For Shareholders
(c) For Debenture holders
(d) All the above

Answer
Answer: (d) All the above

Question 26.
Analysis of financial statements involve :
(a) Trading A/c
(b) Profit & Loss statement
(c) Balance Sheet
(d) All the above

Answer
Answer: (d) All the above

Question 27.
Financial analysis is significant because it:
(a) Ignores qualitative aspect
(b) Judges operational efficiency
(c) Suffers from the limitations of financial statements
(d) It is affected by personal ability and bias of the analysis

Answer
Answer: (b) Judges operational efficiency
Question 28.
What is shown by the Income Statement ?
(a) Accuracy of books of accounts
(b) Profit or loss of a certain period
(c) Balance of Cash Book
(d) None of these

Answer
Answer: (b) Profit or loss of a certain period

Question 29.
What is shown by Balance Sheet ?
(a) Accuracy of books of accounts
(b) Profit or loss of a specific period
(c) Financial position on a specific date
(d) None of the above

Answer
Answer: (c) Financial position on a specific date

Question 30.
Which of the following is the purpose or objective of financial analysis ?
(a) To assess the current profitability of the firm
(b) To measure the solvency of the firm
(c) To assess the short-term and long-term liquidity position of the firm
(d) All the above

Answer
Answer: (d) All the above

Question 31.
Out of the following which parties are interested in financial statements ?
(a) Managers
(b) Financial Institutions
(c) Creditors
(d) All the these

Answer
Answer: (d) All the these

Question 32.
Which of the following is not a limitations of financial statement analysis ?
(a) To measure the financial strength
(b) Affected by window-dressing
(c) Do not reflect changes in price level
(d) Lack of Qualitative Analysis

Answer
Answer: (a) To measure the financial strength

Question 33.
Break-even Analysis shows:
(a) Relationship between cost and sales
(b) Relationship between production and purchases
(c) Relationship between cost and revenue
(d) None of these

Answer
Answer: (a) Relationship between cost and sales

Question 34.
Which of the following shows the actual financial position of nenterprise ?
(a) Fund Flow
(b) Balance Sheet
(c) P & L A/c
(d) Ratio Analysis

Answer
Answer: (b) Balance Sheet

Question 35.
The financial statements of a business enterprise include:
(a) Balance Sheet
(b) Profit & Loss Account
(c) Cash Flow Statement
(d) All the above

Answer
Answer: (d) All the above

Question 36.
An annual report is issued by company to its :
(a) Directors
(b) Auditors
(c) Shareholders
(d) Management

Answer
Answer: (c) Shareholders

Question 37.
Balance Sheet provides information about financial position of the enterprise :
(a) At a Point of Time
(b) Over a Period of Time
(c) For a Period of Time
(d) None of the above

Answer
Answer: (a) At a Point of Time

Question 38.
Profit & Loss Account is also called :
(a) Balance Sheet
(b) Income Statements
(c) Operating Profit
(d) Investment

Answer
Answer: (b) Income Statements
Question 39.
Which of the following statement is correct ?
(a) Assets = Liabilities + Shareholders funds
(b) Assets = Total funds
(c) Assets = Funds of outsiders .
(d) None of the above

Answer
Answer: (a) Assets = Liabilities + Shareholders funds

Question 40.
In which meeting of company directors report is presented ?
(a) Directors Meeting
(b) Annual General Meeting
(c) Manager’s Meeting
(d) All of the above

Answer
Answer: (b) Annual General Meeting

Question 41.
On the basis of process, which of the following is the type of financial analysis ?
(a) Horizontal Analysis
(b) Vertical Analysis
(c) Ratio Analysis
(d) (a) and (b) both

Answer
Answer: (d) (a) and (b) both

Question 42.
Which Of the following is limitation of financial analysis ?
(a) Window-dressing
(b) Basis of Valuation
(c) Lack of Accuracy
(d) All the above

Answer
Answer: (d) All the above

Question 43.
Which of the following is not the limitations of financial analysis ?
(a) Lack of Accuracy
(b) Based on Historical facts
(c) Basis of Valuation
(d) Information of Profit and Loss

Answer
Answer: (d) Information of Profit and Loss

Question 44.
When Financial Statements of two or more organisations are analysed, it is called :
(a) Intra-firm Analysis
(b) Inter-firm Analysis
(c) Vertical Analysis
(d) None of these

Answer
Answer: (b) Inter-firm Analysis

Question 45.
Which of the following statement correct ?
(a) Retained Earnings = Total Income
(b) Retained Earnings = Revenue-expenses
(c) Retained Earnings = Gross Profit
(d) None of the above

Answer
Answer: (b) Retained Earnings = Revenue-expenses
Question 46.
Which of the following is a type of Financial Analysis on the basis of material used ?
(a) Internal Analysis
(b) External Analysis
(c) Internal Audit
(d) Both (a) and (b)

Answer
Answer: (d) Both (a) and (b)
 SKV VIDHYAASHRAM SEN. SEC.SCHOOL
(Affiliated to CBSE vide No-1930 454)

OBJECTIVE QUESTION BANK

Grade/Section: XII COMMERCE
Subject: Accountancy
PART B
Chapter 4:

Accounting Ratios
Question 1.
The formula for ascertaining Total Assets to Debt Ratio is:

Answer
Answer: (a)

Question 2.
Proprietory Ratio indicates the relationship between proprietor’s funds and….
(a) Reserve
(b) Share Capital
(c) Total Assets
(d) Debentures

Answer
Answer: (c) Total Assets
Question 3.
Proprietory ratio is calculated by the following formula:

Answer
Answer: (c)

Question 4.
Which one of the following ratios is most important in determining the long-term
solvency of a company ?
(a) Profitability Ratio
(b) Debt-Equity Ratio
(c) Stock Turnover Ratio
(d) Current Ratio

Answer
Answer: (b) Debt-Equity Ratio

Question 5.
Total Assets ₹ 8,10,000
Total Liabilities ₹ 2,60,000
Current Liabilities ₹ 40,000
Debt-equity ratio is:
(a) 0.05 : 1
(b) 0.4 : 1
(c) 2.5 : 1
(d) 4 : 1

Answer
Answer: (c) 2.5 : 1
Question 6.
Equity share capital ₹ 15,00,000
Reserve and Surplus ₹ 7,50,000
Total Assets ₹ 45,00,000
Properletory Ratio ?
(a) 50%
(b) 33.3%
(c) 200%
(d) 60%

Answer
Answer: (a) 50%

Question 7.
Total Assets ₹ 7,70,000
Total Liabilities ₹2,60,000
Current Liabilities ₹ 40,000
Total Assets to Debt Ratio is:
(a) 3.5 : 1
(b) 2.56 : 1
(c) 2.8 : 1
(d) 3 : 1

Answer
Answer: (a) 3.5 : 1

Question 8.
Profitability Ratios are generally expressed in :
(a) Simple Ratio
(b) Percentage
(c) Times
(d) None of these

Answer
Answer: (b) Percentage

Question 9.
The ratios are primarily measures of earning capacity of the business.
(a) Liquidity
(b) Activity
(c) Debt
(d) Profitability

Answer
Answer: (d) Profitability

Question 10.
The gross profit ratio is the ratio of gross profit to :
(a) Net Cash Sales
(b) Net Credit Sales
(c) Closing Stock
(d) Net Total Sales

Answer
Answer: (d) Net Total Sales

Question 11.
Operating Ratio is:
(a) Profitability Ratio
(b) Activity Ratio
(c) Solvency Ratio
(d) None of these

Answer
Answer: (a) Profitability Ratio

Question 12.
Which of the following is an operating’ income ?
(a) Sale of Merchandise
(b) Interest Income
(c) Dividend Income
(d) Profit on the sale of old car

Answer
Answer: (a) Sale of Merchandise
Question 13.
Which of the following non-operating expense?
(a) Rent
(b) Selling Expenses
(c) Wages
(d) Loss on Sale of Machinery

Answer
Answer: (d) Loss on Sale of Machinery

Question 14.
The following groups of ratios primarily measure risk
(a) Liquidity, activity and profitability
(b) Liquidity, activity and common stock
(c) Liquidity, activity and debt
(d) Activity, debt and profitability

Answer
Answer: (d) Activity, debt and profitability

Question 15.
To know the return on investment, by capital employed we mean:
(a) Net Fixed Assets
(b) Current Asset-Current Liabilities
(c) Gross Block
(d) Fixed Assets + Current Assets-Current Liabilities

Answer
Answer: (d) Fixed Assets + Current Assets-Current Liabilities

Question 16.
The term fixed assets include :
(a) Cash
(b) Machinery
(c) Debtors
(d) Prepaid Expenses

Answer
Answer: (b) Machinery

Question 17.
Ratio based on figures of profit & loss as well a the Balance sheet are:
(a) Profitability Ratios
(b) Operation Ratio
(c) Liquidity Ratio
(d) Composite Ratio

Answer
Answer: (d) Composite Ratio

Question 18.
Debtors Turnover Ratio :

Answer
Answer: (c)

Question 19.
When opening stock is ₹ 50,000 closing stock ₹ 60,000 and cost of goods sold is ₹
2,20,000, then stock turn over ratio is:
(a) 2 times
(b) 3 times
(c) 4 times
(d) 5 times

Answer
Answer: (a) 2 times

Question 20.
What does Creditors Turnover Ratio take into account:
(a) Total credit purchases
(b) Total credit sales
(c) Total cash sales
(d) Total cash purchases

Answer
Answer: (a) Total credit purchases

Question 21.
Cost of goods sold :
(a) Sales – Net profit
(b) Sales – Gross profit
(c) Purchases – Opening Stock
(d) None of the above

Answer
Answer: (b) Sales – Gross profit

Question 22.
The ideal liquid ratio is :
(a) 2 : 1
(b) 1 : 1
(c) 5 : 1
(d) 4 : 1

Answer
Answer: (b) 1 : 1
Question 23.
The ideal current ratio is :
(a) 2 : 1
(b) 1 : 2
(c) 3 : 2
(d) 3 : 4

Answer
Answer: (a) 2 : 1

Question 24.
Operating Ratio is:
(a) Profitability Ratio
(b) Activity Ratio
(c) Solvency Ratio
(d) None of these

Answer
Answer: (a) Profitability Ratio

Question 25.
Profitability Ratio is generally shown in :
(a) Simple Ratio
(b) Percentage
(c) Times
(d) None of these

Answer
Answer: (b) Percentage

Question 26.
If sales is 7 4,20,000 sales returns is 7 20,000 and cost of goods sold 7 3,20,000
gross profit ratio will be :
(a) 20%
(b) 25%
(c) 15%
(d) 10%

Answer
Answer: (a) 20%

Question 27.
Stock turnover ratio comes under :
(a) Liquidity Ratio
(b) Profitability Ratio
(c) Activity Ratio
(d) None of these

Answer
Answer: (c) Activity Ratio

Question 28.
The satisfactory ratio between internal and external equity is. :
(a) 1 : 2
(b) 2 : 1
(c) 3 : 1
(d) 4 : 1

Answer
Answer: (b) 2 : 1

Question 29.
Current Ratio includes:
(a) Stock
(b) Debtors
(c) Cash
(d) All of these

Answer
Answer: (c) Cash
Question 30.
Current Ratio =
(a) Current Assets/Current Liabilities
(b) Liquid Assets/Current Liabilities
(c) Liquid Assets/Current Assets
(d) Fixed Assets/Current Assets

Answer
Answer: (a) Current Assets/Current Liabilities

Question 31.
Liquid Assets include :
(a) Bills Receivable
(b) Debtors
(c) Cash Balance
(d) All of these

Answer
Answer: (d) All of these

Question 32.
Which of the following assets is not taken into consideration in calculating acid-test
ratio ?
(a) Cash
(b) Bills Receivable
(c) Stock
(d) None of these

Answer
Answer: (c) Stock

Question 33.
When Cash is 7 10,000 Stock is 7 25,000, B/R is 7 5,000 Creditors is 7 22,000 and
Bank Overdraft is 7 8,000 then current ratio is :
(a) 2 : 1
(b) 4 : 3
(c) 3 : 4
(d) 1 : 2
Answer
Answer: (b) 4 : 3

Question 34.
The two basic measures of liquidity are :
(a) Inventory Turnover and Current Ratio
(b) Current Ratio and Liquid Ratio
(c) Current Ratio and Average Collection Period
(d) Current Ratio and Debtors Turnover Ratio

Answer
Answer: (b) Current Ratio and Liquid Ratio

Question 35.
Liquidity Ratio:

Answer
Answer: (c)

Question 36.
The term ‘Current Liabilities’ does not include: .
(a) Sundry Creditors
(b) Debentures
(c) Bills Payable
(d) Outstanding Expenses

Answer
Answer: (b) Debentures
Question 37.
The term‘CurrentAssets’include
(a) Long-term Investment
(b) Short-term Investment
(c) Furniture
(d) Preliminary Expenses

Answer
Answer: (b) Short-term Investment

Question 38.
Liquid Ratio is also known as:
(a) Current Ratio
(b) Quick Ratio
(c) Capital Ratio
(d) None of these

Answer
Answer: (b) Quick Ratio

Question 39.
To test the liquidity of a concern which of the following ratios is useful ?
(a) Capital Turnover Ratio
(b) Acid Test Ratio
(c) Stock Turnover Ratio
(d) Net Profit Ratio

Answer
Answer: (b) Acid Test Ratio

Question 40.
Which of the following transactions will improve the current ratio ?
(a) Purchase of good for cash
(b) Cash received from customers
(c) Payment of creditors
(d) Credit purchase of goods

Answer
Answer: (c) Payment of creditors

Question 41.
Debt-equity ratio is :
(a) Liquidity Ratio
(b) Activity Ratio
(c) Solvency Ratio
(d) Operating Ratio

Answer
Answer: (c) Solvency Ratio

Question 42.
The formula for finding out Debt-Equity Ratio is:
(a) Long-term Debts/Shareholders’ Funds
(b) Debentures/Equity Capital
(c) Net Profit/Total Capital
(d) None of these

Answer
Answer: (a) Long-term Debts/Shareholders’ Funds
 SKV VIDHYAASHRAM SEN. SEC.SCHOOL
(Affiliated to CBSE vide No-1930 454)

OBJECTIVE QUESTION BANK

Grade/Section: XII COMMERCE
Subject: Accountancy
PART A
Chapter 2:

Accounting for Partnership Firms — Fundamentals

1. Features of a partnership firm are :
(A) Two or more persons are carrying common business under an agreement.
(B) They are sharing profits and losses in the fixed ratio.
(C) Business is carried by all or any of them acting tor all as an agent.
(D) All of the above.

Answer
Answer: D

2. Following are essential elements of a partnership firm except:

(A) At least two persons
(B) There is an agreement between all partners
(C) Equal share of profits and losses
(D) Partnership agreement is for some business.

Answer
Answer: C

3. In case of partnership the act of any partner is :

(A) Binding on all partners
(B) Binding on that partner only
(C) Binding on all partners except that particular partner
(D) None of the above

Answer
Answer: A

4. Which of the following statement is true?

(A) a minor cannot be admitted as a partner
(B) a minor can be admitted as a partner, only into the benefits of the partnership
(C) a minor can be admitted as a partner but his rights and liabilities are same of adult partner
(D) none of the above

Answer
Answer: B

5. Oustensible partners are those who

(A) do not contribute any capital but get some share of profit for lending their name to the
business
(B) contribute very less capital but get equal profit
(C) do not contribute any capital and without having any interest in the business, lend their
name to the business
(D) contribute maximum capital of the business

Answer
Answer: C

6. Sleeping partners are those who

(A) take active part in the conduct of the business but provide no capital. However, salary is
paid to them.
(B) do not take any part in the conduct of the business but provide capital and share profits and
losses in the agreed ratio
(C) take active part in the conduct of the business but provide no capital. However, share profits
and losses in the agreed ratio.
(D) do not take any part in the conduct of the business and contribute no capital. However,
share profits and losses in the agreed ratio.

Answer
Answer: B

7. The relation of partner with the firm is that of:

(A) An Owner
(B) An Agent
(C) An Owner and an Agent
(D) Manager

Answer
Answer: C

8. What should be the minimum number of persons to form a Partnership :

(A) 2
(B) 7
(C) 10
(D) 20

Answer
Answer: A

9. Number of partners in a partnership firm may be :

(A) Maximum Two
(B) Maximum Ten
(C) Maximum One Hundred
(D) Maximum Fifty

Answer
Answer: D

10, Liability of partner is :

(A) Limited
(B) Unlimited
(C) Determined by Court
(D) Determined by Partnership Act

Answer
Answer: B

11. Which one of the following is NOT an essential feature of a partnership?

(A) There must be an agreement
(B) There must be a business
(C) The business must be carried on for profits
(D) The business must be carried on by all the partners

Answer
Answer: D

12. X, Y and Z are partners sharing profits and losses equally. Their capital balances on March,
31, 2012 are ₹80,000, ₹60,000 and ₹40,000 respectively. Their personal assets are worth as
follows : X — ₹20,000, Y— ₹15,000 and Z— ₹10,000. The extent of their liability in the firm
would be : (C.S. Foundation; June 2013)
(A) X — ₹80,000 : Y— ₹60,000 : and Z — ₹40,000
(B) X — ₹20,000 : Y— ₹15,000 : and Z — ₹10,000
(C) X — ₹1,00,000 : Y— ₹75,000 : and Z — ₹50,000
(D) Equal

Answer
Answer: B

13. Every partner is bound to attend diligently to his in the conduct of

the business.
(A) Rights
(B) Meetings
(C) Capital
(D) Duties

Answer
Answer: D

(ii) Partnership Deed

14. Forming a Partnership Deed is :
(A) Mandatory
(B) Mandatory in Writing
(C) Not Mandatory
(D) None of the Above

Answer
Answer: C

15. Partnership Deed is also called

(A) Prospectus
(B) Articles of Association
(C) Principles of Partnership
(D) Articles of Partnership

Answer
Answer: D

16. Which of the following is not incorporated in the Partnership Act?

(A) profit and loss are to be shared equally
(B) no interest is to be charged on capital
(C) all loans are to be charged interest @6% p.a.
(D) all drawings are to be charged interest

Answer
Answer: D

17. When is the Partnership Act enforced?

(A) when there is no partnership deed
(B) where there is a partnership deed but there are differences of opinion between the partners
(C) when capital contribution by the partners varies
(D) when the partner’s salary and interest on capital are not incorporated in the partnership
deed

Answer
Answer: A
18. In the absence of Partnership Deed, the interest is allowed on partner’s capital: (CPT; June
2011)
(A) @ 5% p.a.
(B) @ 6% p.a.
(C) @ 12% p.a.
(D) No interest is allowed

Answer
Answer: D

19. In the absence of a partnership deed, the allowable rate of interest on partner’s loan
account will be :
(A) 6% Simple Interest
(B) 6% p.a. Simple Interest
(C) 12% Simple Interest
(D) 12% Compounded Annually

Answer
Answer: B

20. A and B are partners in partnership firm without any agreement. A has given a loan of
₹50,000 to the firm. At the end of year loss was incurred in the business. Following interest
may be paid to A by the firm :
(A) @5% Per Annum
(B) @ 6% Per Annum
(C) @ 6% Per Month
(D) As there is a loss in the business, interest can’t be paid

Answer
Answer: B

21. A and B are partners in a pertnership firm without any agreement. A has withdrawn ?50,000
out of his Capital as drawings. Interest on drawings may be charged from A by the firm :
(A) @ 5% Per Annum
(B) @ 6% Per Annum
(C) @ 6% Per Month
(D) No interest can be charged

Answer
Answer: D

22. A and B are partners in a partnership firm without any agreement. A devotes more time for
the firm as compare to B. A will get the following commission in addition to profit in the firm’s
profit:
(A) 6% of profit
(B) 4% of profit
(C) 5% of profit
(D) None of the above

Answer
Answer: D

23. In the absence of partnership deed, the following rule will apply :
(A) No interest on capital
(B) Profit sharing in capital ratio
(C) Profit based salary to working partner
(D) 9% p.a. interest on drawings

Answer
Answer: A

24. In the absence of agreement, partners are not entitled to :

(A) Salary
(B) Commission
(C) Equal share in profit
(D) Both (a) and (b)

Answer
Answer: D

25. Interest on capital will be paid to the partners if provided for in the partnership deed but only
out of: (C.S. Foundation; December, 2012)
(A) Profits
(B) Reserves
(C) Accumulated Profits
(D) Goodwill

Answer
Answer: A

26. Which one of the following items cannot be recorded in the profit and loss appropriation
account?
(A) Interest on capital
(B) Interest on drawings
(C) Rent paid to partners
(D) Partner’s salary

Answer
Answer: C
27. If any loan or advance is provided by partner then, balance of such Loan Account should be
transferred to :
(A) B/S Assets side
(B) B/S Liability Side
(C) Partner’s Capital A/c
(D) Partner’s Current A/c

Answer
Answer: B

28. A, B and C were Partners with capitals of ₹50,000; ₹40,000 and ?30,000 respectively
carrying on business in partnership. The firm’s reported profit for the year was ₹80,000. As per
provision of the Indian Partnership Act, 1932, find out the share of each partner in the above
amount after taking into account that no interest has been provided on an advance by A of
₹20,000 in addition to his capital contribution.
(A) ₹26,267 for Partner B and C and ₹27,466 for Partner A.
(B) ₹26,667 each partner.
(C) ₹33,333 for A ₹26,667 for B and ₹20,000 for C.
(D) ₹30,000 each partner.

Answer
Answer: A

29. X, Y, and Z are partners in a firm. At the time of division of profit for the year, there was
dispute between the partners. .Profit before interest on partner’s capital was ₹6,000 and Y
determined interest @24% p.a. on his loan of ₹80,000. There was no agreement on this point.
Calculate the amount payable to X, Y, and Z respectively.
(A) ₹2,000 to each partner.
(B) Loss of ₹4,400 for X and Z; Twill take ₹14,800.
(C) ₹400 for A, ₹5,200 for Land ₹400 for Z.
(D) None of the above.

Answer
Answer: C

30. X, Y, and Z are partners in a firm. At the time of division of profit for the year, there was
dispute between the partners. Profit before interest on partner’s capital was ₹6,00,000 and Z
demanded minimum profit of ₹5,00,000 as his financial position was not good. However, there
was no written agreement on this point.
(A) Other partners will pay Z the minimum profit and will share the loss equally.
(B) Other partners will pay Z the minimum profit and will share the loss in capital ratio.
(C) Xand T will take ₹50,000 each and Z will take ₹5,00,000.
(D) ₹2,00,000 to each of the partners.

Answer
Answer: D
31. On 1st June 2018 a partner introduced in the firm additional capital ₹50,000. In the absence
of partnership deed, on 31st March 2019 he will receive interest :
(A) ₹3,000
(B) Zero
(C) ₹2,500
(D) ₹1,800

Answer
Answer: B

32. On 1st January 2019, a partner advanced a loan of ₹1,00,000 to the firm. In the absence of
agreement, interest on loan on 31st March 2019 will be :
(A) Nil
(B) ₹1,500
(C) ₹3,000
(D) ₹6,000

Answer
Answer: B

33. A partner introduced additional capital of ₹30,000 and advanced a loan of ₹40,000 to the
firm at the beginning of the year. Partner will receive year’s interest:
(A) ₹4,200
(B) ₹2,400
(C) Nil
(D) ₹1,800

Answer
Answer: B

34. In the absence of partnership deed, partners share profits or losses :

(A) In the ratio of their Capitals
(B) In the ratio decided by the court
(C) Equally
(D) In the ratio of time devoted

Answer
Answer: C

35. In the absence of Partnership Deed :

(A) Interest will not be charged on partner’s drawings
(B) Interest will be charged @. 5% p.a. on partner’s drawings
(C) Interest will be charged @ 6% p.a. on partner’s drawings
(D) Interest will be charged @ 12% p.a. on partner’s drawings
Answer
Answer: A

36. In the absence of express agreement, interest @ 6% p.a. is provided :

(A) On opening balance of partner’s capital accounts
(B) On closing balance of partner’s capital accounts
(C) On loan given by partners to the firm
(D) On opening balance of partner’s current accounts

Answer
Answer: C

37. Which of the following items are recorded in the Profit & Loss Appropriation Account of a
partnership firm?
(A) Interest on Capital
(B) Salary to Partner
(C) Transfer to Reserve
(D) All of the above

Answer
Answer: D

38. Is rent paid to a partner appropriation of profits?

(A) It is appropriation of profit
(B) It is not appropriation of profit
(C) If partner’s contribution as capital is maximum
(D) If partner is a working partner.

Answer
Answer: B

(iii) Calculation of Profit and Division of Profit among partners

39. According to Profit and Loss Account, the net profit for the year is ₹1,50,000. The total
interest on partner’s capital is ₹18,000 and interest on partner’s drawings is ₹2,000. The net
profit as per Profit and Loss Appropriation Account will be :
(A) ₹1,66,000
(B) ₹1,70,000
(C) ₹1,30,000
(D) ₹1,34,000

Answer
Answer: D

40. According to Profit and Loss Account, the net profit for the year is ₹4,20,000. Salary of a
partner is ₹5,000 per month and the commission of another partner is ₹10,000. The interest on
drawings of partners is ₹4,000. The net profit as per Profit and Loss Appropriation Account will
be :
(A) ₹3,54,000
(B) ₹3,46,000
(C) ₹4,09,000
(D) ₹4,01,000

Answer
Answer: A

41. A and B are partners. According to Profit and Loss Account, the net profit for the year is
₹2,00,000. The total interest on partner’s drawings is ₹1,000. As salary is ₹40,000 per year
and B’s salary is ₹3,000 per month. The net profit as per Profit and Loss Appropriation Account
will be :
(A) ₹1,23,000
(B) ₹1,25,000
(C) ₹1,56,000
(D) ₹1,58,000

Answer
Answer: B

42. According to Profit and Loss Account, the net profit for the year is ₹1,40,000. The total
interest on partner’s capital is? 8,000 and a partner is to be allowed commission of ₹5,000. The
total interest on partner’s drawings is ₹1,200. The net profit as per Profit and Loss
Appropriation Account will be :
(A) ₹1,28,200
(B) ₹1,44,200
(C) ₹1,25,800
(D) ₹1,41,800

Answer
Answer: A

43. Sangeeta and Ankita are partners in a firm. Sangeeta’s capital is ₹70,000 and Ankita’s
Capital is ₹50.000. Firm’s profit is ₹60,000.Ankita share in profit will be :
(A) ₹25,000
(B) ₹3 0,000
(C) ₹35,000
(D) ₹20,00

Answer
Answer: B

44. A, B and C are partners. A’s capital is ₹3,00,000 and B’s capital is ₹1,00,000. C has not
invested any amount as capital but he alone manages the whole business. C wants ?30,000
p.a. as salary. Firm earned a profit of ₹1,50,000. How much will be each partner’s share of
profit:
(A) A ₹60,000; B ₹60,000; C ₹Nil
(B) A ₹90,000; B ₹30,000; C ₹Nil
(C) A ₹40,000; B ₹40,000 and C ₹40,000
(D) A ₹50,000; B ₹50,000and C ₹50,000.

Answer
Answer: D

45. Net profit of a firm is ₹49,500. Manager is entitled to a commission of 10% on profits before
charging his commission. Manager’s Commission will be :
(A) ₹4,950
(B) ₹4,500
(C) ₹5,500
(D) ₹495

Answer
Answer: A

46. Net profit of a firm is ₹79,800. Manager is entitled to a commission of 5% of profits after
charging his commission. Manager’s Commission will be :
(A) ₹4,200
(B) ₹380
(C) ₹3,990
(D) ₹3,800

Answer
Answer: D

47. Ram and Shyam are partners in the ratio of 3 : 2. Before profit distribution, ‘ Ram is entitled
to 5% commission of the net profit (after charging such commission). Before charging
commission, firm’s profit was ₹42,000. Shyam’s share in profit will be :
(A) ₹16,000
(B) ₹24,000
(C) ₹26,000
(D) ₹16,400

Answer
Answer: A

48. A, B and C are partners in the ratio of 5 : 3 : 2. Before B’s salary of ₹17,000 firm’s profit is
₹97,000. How much in total B will receive from the firm?
(A) ₹17,000
(B) ₹40,000
(C) ₹24,000
(D) ₹41,000

Answer
Answer: D

Hint: Total amount received by die partner will be Salary + Share of Profit
49. A, B and C are partners in a firm without any agreement. They have contributed 750,000,
730,000 and 720,000 by way of capital in the firm. A was unable to work for six months in a
year due to illness. At the end of year, firm earned a pro lit of 7 15,000. A’s share in the profit
will be :
(A) 77.500
(B) 73,750
(C) 75,000
(D) 72,500

Answer
Answer: C

50. In a partnership lirm, partner A is entitled a monthly salary of ₹7,500. At the end of the year,
firm earned a profit of ₹75,000 after charging T’s salary. If the manager is entitled a
commission of 10% on the net profit after charging his commission, Manager’s commission will
be :
(A) ₹7,500
(B) ₹16,500
(C) ₹8,250
(D) ₹15,000

Answer
Answer: D

51. Seeta and Geeta are partners sharing profits and losses in the ratio 4 : 1. Meeta was
manager who received the salary of ₹4,000 p.m. in addition to a commission of 5% on net
profits after charging such commission. Profit for the year is ₹6,78,000 before charging salary.
Find the total remuneration of Meeta.
(A) ₹78,000
(B) ₹88,000
(C) ₹87,000
(D) ₹76,000

Answer
Answer: A

52. Which of the following statement is true?

(A) Fixed capital account will always have a credit balance
(B) Current account can have a positive or a negative balance
(C) Fluctuating capital account can have a positive or a negative balance
(D) All of the above

Answer
Answer: D

(iv) Capital Accounts of Partners

53. Which accounts are opened when the capitals are fixed?
(A) Only Capital Accounts
(B) Only Current Accounts
(C) Capital Accounts as well as Current Accounts
(D) Either Capital Accounts or Current Accounts

Answer
Answer: C

54. Which accounts are opened when the capitals are fluctuating?
(A) Only Capital Accounts
(B) Only Current Accounts
(C) Capital Accounts as well as Current Accounts
(D) Either Capital Accounts or Current Accounts

Answer
Answer: A

55. Balance of partner’s current accounts are :

(A) Debit balance
(B) Credit balances
(C) Debit or Credit balances
(D) Neither Debit nor credit balances

Answer
Answer: C

56. Which item is recorded on the credit side of partner’s current accounts :
(A) Interest on Fanner’s Capitals
(B) Salaries of Partners
(C) Share of profits of Partners
(D) All of the Above

Answer
Answer: D

57. If the Partners’ Capital Accounts are fixed ‘salary payable to partner’ will be recorded :
(A) On the debit side of Partners’ Current Account
(B) On the debit side of Partners’ Capital Account
(C) On the credit side of Partners’ Current Account
(D) None of the above

Answer
Answer: C

58. It the Partner’s Capital Accounts are fixed, interest on capital will be recorded:
(A) On the credit side of Current Account
(B) On the credit side of Capital Account
(C) On the debit side of Current Account
(D) On the debit side of Capital Account

Answer
Answer: A

59. If the Partner’s Capital Accounts are fluctuating, in that case following item/items will be
recorded in the credit side of capital accounts :
(A) Interest on capital
(B) Salary of partners
(C) Commission of partners
(D) All of the above

Answer
Answer: D

60. Interest on partner’s capitals will be debited to :

(A) Profit and Loss Account
(B) Profit and Loss Appropriation Account
(C) Partner’s Capital Accounts
(D) None of the Above

Answer
Answer: B

61. Interest on partner’s capitals will be credited to :

(A) Profit and Loss Account
(B) Profit and Loss Appropriation Account
(C) Interest Account
(D) Partner’s Capital Accounts

Answer
Answer: D
62. For the firm interest on drawings is
(A) Capital Payment
(B) Expenses
(C) Capital Receipt
(D) Income

Answer
Answer: D

63. Interest on Partner’s drawings will be debited to :

(A) Profit and Loss Account
(B) Profit and Loss Appropriation Account
(C) Partner’s Current Account
(D) Interest Account

Answer
Answer: C

64. When partners’ capital accounts are floating, which one of the following items will be written
on the credit side of the partners’ capital accounts? :
(A) Interest on drawings
(B) Loan advanced by partner to the firm
(C) Partner’s share in the firm’s loss
(D) Salary to the activ e partners

Answer
Answer: D

65. When partners’ capital accounts are fixed, which one of the following items will be written in
the partner’s capital account? :
(A) Partner’s Drawings
(B) Additional capital introduced by the partner in the firm
(C) Loan taken by partner from the firm
(D) Loan Advanced by partner to the firm

Answer
Answer: B

66. Interest on partner’s drawings will be credited to

(A) Profit and Loss Account
(B) Profit and Loss Appropriation Account
(C) Partner’s Capital Accounts
(D) None of the Above

Answer
Answer: B
67. For the firm interest on capital is :
(A) Capital Payment
(B) Capital Receipt
(C) Loss
(D) Income

Answer
Answer: C

(v) Interest on Capital

68. On 1st April 2018, 2fs Capital was ₹2,00,000. On 1st October 2018, he introduces
additional capital of ₹1,00,000. Interest on capital @ 6% p.a. on 31st March, 2019 will be :
(A) ₹9,000
(B) ₹18,000
(C) ₹10,500
(D) ₹15,000

Answer
Answer: D

69. Xand Y are partners in the ratio of 3 : 2. Their capitals are ?2,00,000 and ₹1,00,000
respectively. Interest on capitals is allowed @ 8% p.a. Firm earned a profit of ?60,000 for the
year ended 31st March 2019. Interest on Capital will be :
(A) X ₹16,000; Y ₹8,000
(B) V ₹8.000; Y ₹4,000
(C) X ₹14,400; Y ₹9,600
(D) No Interest will be allowed

Answer
Answer: A

70. X and Y are partners in the ratio of 3 : 2. Their capitals are ₹2,00,000 and ₹1,00,000
respectively. Interest on capitals is allowed @ 8% p.a. Firm earned a profit of ₹15,000 for the
year ended 31st March 2019. Interest on Capital will be :
(A) X ₹16,000; Y ₹8,000
(B) X ₹9,000; Y ₹6,000
(C) X ₹10,000; Y ₹5,000
(D) No Interest will be allowed

Answer
Answer: C

71. X and Y are partners in the ratio of 3 : 2. Their capitals are ?2,00,000 and ₹1,00,000
respectively. Interest on capitals is allowed @ 8% p.a. Firm incurred a loss of ₹60,000 for the
year ended 31st March 2019. Interest on Capital will be :
(A) X ₹16,000; Y ₹8,000
(B) A ₹8,000; Y ₹4,000
(C) X ₹14,400; Y ₹9,600
(D) No Interest will be allowed

Answer
Answer: D

72. X and Y are partners in the ratio of 3 : 2. Their capitals are ₹2,00,000 and ₹1,00,000
respectively. Interest on capitals is allowed @ 8% p.a. Firm earned a profit of ₹15,000 for the
year ended 31st March 2019. As per partnership agreement, interest on capital is treated a
charge on profits. Interest on Capital will be :
(A) X ₹16,000; Y ₹8,000
(B) X ₹9,000; Y ₹6,000
(C) X ₹10,000; Y ₹5,000
(D) No Interest will be allowed

Answer
Answer: A

73. A and B contribute ₹1,00,000 and ?₹60,000 respectively in a partnership firm by way of
capital on which they agree to allow interest @ 8% p.a. Their profit or loss sharing ratio is 3 : 2.
The profit at the end of the year was ₹2,800 before allowing interest on capital. If there is a
clear agreement that interest on capital will be paid even in case of loss, then S’s share will be:
(A) Profit ₹6,000
(B) Profit ₹4,000
(C) Loss ₹6,000
(D) Loss ₹4,000

Answer
Answer: D

(vi) [nterest on Drawings

74. Partners are suppose to pay interest on drawing only when by the
(A) Provided, Agreement
(B) Permitted, Investors
(C) Agreed, Partners
(D) ‘A’ & ‘C’ above

Answer
Answer: D

75. Where will you record interest on drawings : (CPT; June 2011)
(A) Debit Side of Profit & Loss Appropriation Account
(B) Credit Side of Profit & Loss Appropriation Account
(C) Credit Side of Profit & Loss Account
(D) Debit Side of Capital/Current Account only.

Answer
Answer: B

76. How would you close the Partner’s Drawing Account:

(A) By transfer to Capital or Current Account Debit Side.
(B) By transfer to Capital Account Credit Side.
(C) By transfer to Current Account Credit Side.
(D) Either ‘B‘ or ‘C’.

Answer
Answer: A

77. If date of drawings of the partner’s is not given in the question, interest is charged for how
much time
(A) 1 month
(B) 3 months
(C) 6 months
(D) 12 months

Answer
Answer: C

78. Vikas is a partner in a firm. His drawings during the year ended 31st March, 2019 were
?72,000. If interest on drawings is charged @ 9% p.a. the interest charged will be :
(A) ₹324
(B) ₹6,480
(C) ₹3,240
(D) ₹648

Answer
Answer: C

79. If a fixed amount is withdrawn by a partner on the first day of every month, interest on the
total amount is charged for …………… months :
(A) 6
(B) 61/2
(C) 51/2
(D) 12

Answer
Answer: B
80. If a fixed amount is withdrawn by a partner on the last day of every month, interest on the
total amount is charged for …………… months :
(A) 12
(B) 6 1/2
(C) 5 1/2
(D) 6

Answer
Answer: C

81. If a fixed amount is withdrawn by a partner in the middle of every month, interest on the total
amount is charged for …………… months
(A) 6
(B) 6 1/2
(C) 5 1/2
(D) 12

Answer
Answer: A

82. In a partnership firm, a partner withdrew ₹5,000 per month on the first day of every month
during the year for personal expenses. If interest on drawings is charged @ 6% p.a. the interest
charged will be : (C.S. Foundation, Dec. 2012)
(A) ₹3,600
(B) ₹1,950
(C) ₹1,800
(D) ₹1,650

Answer
Answer: B

83. Ajay is a partner in a firm. He withdrew ₹2,000 per month on the last day of every month
during the year ended 31st March, 2019. If interest on drawings is charged @ 9% p.a. the
interest charged will be :
(A) ₹990
(B) ₹1,080
(C) ₹1,170
(D) ₹2,160

Answer
Answer: A

84. Sushil is a partner in a firm. He withdrew ₹4,000 per month in the middle of every month
during the year ended 31st March, 2019. If interest on drawings is charged @ 8% p.a. the
interest charged will be :
(A) ₹2,080
(B) ₹1,760
(C) ₹3,840
(D) ₹1,920

Answer
Answer: D

85. If fixed amount is withdrawn by a partner on the first day of each quarter, interest on the
total amount is charged for …………….. months
(A) 4.5
(B) 6
(C) 7.5
(D) 3

Answer
Answer: C

86. If a fixed amount is withdrawn by a partner on the last day of each quarter, interest on the
total amount is charged for ……………… months
(A) 6
(B) 4.5
(C) 7.5
(D) 3

Answer
Answer: B

87. If a fixed amount is withdrawn by a partner in each quarter, interest on the total amount is
charged for ……………….. months
(A) 3
(B) 6
(C) 4.5
(D) 7.5

Answer
Answer: B

88. Anuradha is a partner in a firm. She withdrew ₹6,000 in the beginning of each quarter
during the year ended 31st March, 2019. Interest on her drawings @ 10% p.a. will be :
(A) ₹900
(B) ₹1,200
(C) ₹1,500
(D) ₹600

Answer
Answer: C
89. Bipasa is a partner in a firm. She withdrew ₹6,000 at the end of each quarter during the
year ended 31st March, 2019. Interest on her drawings @ 10% p.a. will be :
(A) ₹900
(B) ₹600
(C) ₹1,500
(D) ₹1,200

Answer
Answer: A

90. Charulata is a partner in a firm. She withdrew ₹10,000 in each quarter during the year
ended 31st March, 2019. Interest on her drawings @ 9% p.a. will be:
(A) ₹1,350
(B) ₹2,250
(C) ₹900
(D) ₹1,800

Answer
Answer: D

91. If equal amount is withdrawn by a partner in the beginning of each month during a period of
6 months, interest on the total amount will be charged for ……………… months
(A) 2.5
(B) 3
(C) 3.5
(D) 6

Answer
Answer: C

92. If equal amount is withdrawn by a partner in the end of each month during a period of 6
months, interest on the total amount will be charged for ………………… months
(A) 2.5
(B) 3
(C) 3.5
(D) 6

Answer
Answer: A

93. If equal amount is withdrawn by a partner in each month during a period of 6 months,
interest on the total amount will be charged for …………… months
(A) 6
(B) 3
(C) 2.5
(D) 3.5

Answer
Answer: B

94. X is a partner in a firm. He withdrew regularly ₹1,000 at the beginning of every month for
the six months ending 31st March, 2019. If interest on drawings is charged @ 8% p.a. the
interest charged will be :
(A) ₹240
(B) ₹140
(C) ₹100
(D) ₹120

Answer
Answer: B

95. Y is a partner in a firm. He withdrew regularly ₹3,000 at the end of every month for the six
months ending 31st March, 2019. If interest on drawings is charged @ 10% p.a. the interest
charged will be :
(A) ₹375
(B) ₹450
(C) ₹525
(D) ₹900

Answer
Answer: A

96. Z is a partner in a firm. He withdrew regularly ?2,000 every month for the six months ending
31st March, 2019. If interest on drawings is charged @ 8% p.a. the interest charged will be :
(A) ₹480
(B) ₹280
(C) ₹200
(D) ₹240

Answer
Answer: D

97. A partner withdraws ₹8,000 each on 1st April and 1st Oct. Interest on his drawings @ 6%
p.a. on 31 st March will be :
(A) ₹480
(B) ₹720
(C) ₹240
(D) ₹960

Answer
Answer: B

98. A partner draws ₹2,000 each on 1st April 2018, 1st July 2018, 1st October, 2018 and 1st
January 2019. For the year ended 31st March, 2019 interest on drawings @ 8% per annum will
be :
(A) ₹540
(B) ₹320
(C) ₹960
(D) ₹400

Answer
Answer: D

99. A partner withdraws from firm ₹7,000 at the end of each month. At the rate of 6% per
annum total interest will be :
(A) ₹5,040
(B) ₹2,310
(C) ₹3,570
(D) ₹1,370

Answer
Answer: B

(vii) Adjustments in the Closed Accounts

100. Anu and Tanu are equal partners with fixed capitals of ₹2,00,000 and ₹1,00,000
respectively. After closing the accounts for the year ending 31st – March, 2019 it was
discovered that interest on capitals @ 8% p.a. was omitted to be provided. In the adjusting
entry :
(A) Anu will be credited by ₹16,000 and Tanu will be credited by ₹8,000
(B) Anu will be debited by ₹16,000 and Tanu will be debited by ₹8,000
(C) Anu will be credited by ₹4,000 and Tanu will be debited by ₹4,000
(D) Anu will be debited by ₹4,000 and Tanu will be credited by ₹4,000

Answer
Answer: C

101. Sony and Romy are equal partners with fixed capitals of ₹4,00,000 and ₹3,00,000
respectively. After closing the accounts for the year ending 31st March, 2019 it was discovered
that interest on capitals was provided @ 8% instead of 10% p.a. In the adjusting entry :
(A) Sony will be credited by ₹8,000 and Romy will be credited by ₹6,000.
(B) Sony will be debited by ₹8,000 and Romy will be debited by ₹6,000.
(C) Sony will be debited by ₹1,000 and Romy will be credited by ₹1,000.
(D) Sony will be credited by ₹1,000 and Romy will be debited by ₹1,000.

Answer
Answer: D
102. Asha and Vipasha are equal partners with fixed capitals of ₹5,00,000 and ₹2,00,000
respectively. After closing the accounts for the year ending 31st March 2019 it was discovered
that interest on capitals was provided @ 6% instead of 5% p.a. In the adjusting entry :
(A) Asha will be debited by ₹1,500 and Vipasha will be credited by ₹1,500;
(B) Asha will be credited by ₹1,500 and Vipasha will be debited by ₹1,500;
(C) Asha will be debited by ₹5,000 and Vipasha will be debited by ₹2,000;
(D) Asha will be credited by ₹5,000 and Vipasha will be credited by ₹2,000;

Answer
Answer: A

103. P and Q sharing profits in the ratio of 2 : 1 have fixed capitals of ₹90,000 and f60,000
respectively. After closing the accounts for the year ending 31st March 2019 it was discovered
that interest on capitals was provided @ 6% instead of 8% p.a. In the adjusting entry :
(A) P will be credited by ₹1,800 and Q will be credited by ₹1,200;
(B) P will be debited by ₹200 and Q will be credited by ₹200;
(C) P will be credited by ₹200 and Q will be debited by ₹200;
(D) P will be debited by ₹1,800 and Q will be debited by ₹1,200;

Answer
Answer: B

104. A and B sharing profits in the ratio of 7 : 3 have fixed capitals of ₹2,00,000 and ₹1,00,000
respectively. After closing the accounts for the year ending 31st March 2019 it was discovered
that interest on capitals was provided @ 12% instead of 10% p.a. In the adjusting entry :
(A) A will be debited by ₹4,000 and B will be debited by ₹2,000;
(B) A will be credited by ₹4,000 and B will be credited by ₹2,000;
(C) A will be debited by ₹200 and B will be credited by ₹200;
(D) A will be credited by ₹200 and B will be debited by ₹200;

Answer
Answer: D

105. Xand 7are partners in the ratio of 3 : 2. Their fixed capitals are ₹2,00,000 and ₹1,00,000
respectively. After clsoing the accounts for the year ending 31st March 2019, it was discovered
that interest on capital was allowed @ 12% instead of 10% per annum. By how much amount A
will be debited/credited in the adjustment entry :
(A) ₹600 (Debit)
(B) ₹400 (Credit)
(C) ₹400 (Debit)
(D) ₹600 (Credit)

Answer
Answer: C
106. X, Y and Z are equal partners with fixed capitals of ₹2,00,000, ₹3,00,000 and ?4,00,000
respectively. After closing the accounts for the year ending 31st March 2019 it was discovered
that interest on capitals @ 8% p.a. was omitted to be provided. In the adjusting entry :
(A) Dr. X and Cr. Y by ₹8,000
(B) Cr. X and Dr. Z by ₹8,000
(C) Dr. X and Cr. Z by ₹8.000
(D) Cr. X and Dr. Y by ₹8,000

Answer
Answer: C

107. P, Q and R arc equal partners with fixed capitals of ₹5,00,000, ₹4,00,000 and ₹3,00,000
respectively. After closing the accounts for the year ending 31st March 2019 it was discovered
that interest on capitals was provided @ 7% instead of 9% p.a. In the adjusting entry :
(A) P will be credited by ₹2,000and Q will be debited by ₹2,000.
(B) P will be debited by ₹2,000 and Q will be credited by ₹2,000.
(C) P will be debited by ₹2,000 and R will be credited by ₹2,000.
(D) P will be credited by ₹2,000 and R will be debited by ₹2,000.

Answer
Answer: D

108. X, 7and Z are equal partners with fixed capitals of ₹5,00,000, ?3,00,000 and ₹1,00,000
respectively. After closing the accounts for the year ending 31st March 2019 it was discovered
that interest on capitals was provided @ 6% instead of 5% p.a. In the adjusting entry :
(A) Dr. X and Cr. Z by ₹2,000
(B) Cr. X and Dr. Z by ₹2,000
(C) Dr. X and Cr. Y by ₹2,000
(D) Cr. X and Dr. Y by ₹2,000

Answer
Answer: A

109. P, Q, and R sharing profits in the ratio of 2 : 1 : 1 have fixed capitals of f4,00,000,
₹3,00,000 and ₹2,00,000 respectively. After closing the accounts for the year ending 31st
March 2019 it was discovered that interest on capitals was provided @ 6% instead of 8% p.a. In
the adjusting entry :
(A) Cr. P ₹1,000; Dr. Q ₹1,500 and Cr. R ₹500
(B) Dr. P ₹500; Cr. Q ₹1,500 and Dr. R ₹1,000
(C) Cr. P ₹500; Dr. Q ₹1,500 and Cr. R ₹1,000
(D) Dr. P ₹1,000; Cr. Q ₹1,500 and Dr. R ₹500

Answer
Answer: D
110. A, B and C sharing profits in the ratio of 2 : 2 : 1 have fixed capitals of ₹3,00,000,
₹2,00,000 and ₹1,00,000 respectively. After closing the accounts for the year ending 31st
March 2019 it was discovered that interest on capitals was provided @ 12% instead of 10% p.a.
In the adjusting entry :
(A) Cr. A ₹1,200; Dr. B ₹800 and Dr. C ₹400
(B) Dr. A ₹1,200; Cr. B ₹800 and Cr. C ₹400
(C) Cr. A ₹800; Cr. B ₹400 and Dr. C ₹1,200
(D) Dr. A ₹800; Dr. B ₹400 and Cr. C ₹1,200

Answer
Answer: B

111. X, Y, and Z are partners in the ratio of 4 : 3 : 2. Salary to X ₹15,000 and to Z ₹3,000
omitted and profits distributed. For rectification, now X will be credited :
(A) ₹15,000
(B) ₹1,000
(C) ₹12,000
(D) ₹7,000

Answer
Answer: D

(viii) Guarantee of Profit to a Partner

112. When a partner is given guarantee by other partners, loss on such guarantee will be borne
by :
(A) Partnership firm
(B) All the other partners
(C) Partners who give the guarantee
(D) Partner with highest profit sharing ratio.

Answer
Answer: C

113. Guarantee given to partner ‘A’ by the other partners ‘B & C’ means :
(A) In case of loss, ‘A’ will not contribute towards that loss.
(B) In case of insufficient profits, ‘A’ will receive only the minimum guarantee amount.
(C) In case of loss or insufficient profits, ‘A’ will withdraw the minimum guarantee amount.
(D) All of the above.

Answer
Answer: C

114. P, Q and R are partners in a firm in 3 : 2 : 1. R is guaranteed that he will get minimum of
₹20,000 as his share of profit every year. Firm’s profit was ₹90,000. Partners will get:
(A) P ₹40,000; Q ₹30,000; R ₹20,000;
(B) P ₹42,500; Q ₹27,500; R ₹20,000;
(C) P ₹45,000; Q ₹30,000; R ₹15,000;
(D) P ₹42,000; Q ₹28,000; R ₹20,000;

Answer
Answer: D

115. A, Y and Z are partners in the ratio of 5 : 4 : 3. A has given to Za guarantee of minimum
₹10,000 profit. For the year ending 31st March 2019, firm’s profit is ₹28,800. Js share in profit
will be :
(A) ₹9,200
(B) ₹9,600
(C) ₹7,200
(D) ₹12,000

Answer
Answer: A

116. E, Fand G share profits in the ratio of 4 : 3 : 2. G is given a guarantee that his share of
profits will not be less than ₹75,000. Deficiency if any, would be borne by E and F equally
Firm’s profit was ₹2,70,000. As share of profit will be :
(A) ₹90,000
(B) ₹82,500
(C) ₹97,500
(D) ₹75,000

Answer
Answer: B

117. X, Y, and Z are partners in the ratio of 6 : 4 : 1. In the firm, A has guaranteed Z for his
minimum profit of ₹15,000. Firm’s profit was ₹99,000. In the firm profit As share will be :
(A) ₹30,000
(B) ₹15,000
(C) ₹48,000
(D) ₹45,000

Answer
Answer: C

118. P, Q, and R are partners in 3 : 2 : 1. R is guaranteed that his share of profit will not be less
than ₹70,000. Any deficiency will be borne by P and Q in the ratio of 2 : 1. Firm’s profit was
₹2,40,000. Share of P will be :
(A) ₹1,00,000
(B) ₹1,10,000
(C) ₹1,20,000
(D) ₹1,02,000
Answer
Answer: A

119. A Y and Z are partners in 5 : 4 : 1. Z is guaranteed that his share of profit will not be less
than ₹80,000. Any deficiency will be borne by A and Y in 3 : 2. Firm’s profit was ₹5,60,000.
How much deficiency will be borne by Y :
(A) ₹2,14,400
(B) ₹14,400
(C) ₹2,09,600
(D) ₹9,600

Answer
Answer: D

120. P and Q are partners sharing profits in the ratio of 1 : 2. R was manager who received the
salary of ₹10,000 p.m. in addition to commission of 10% on net profits after charging such
commission. Total remuneration to R amounted to ₹1,80,000. Profit for the year before
charging salary and commission was :
(A) ₹7,20,000
(B) ₹6,00,000
(C) ₹7,80,000
(D) ₹6,60,000

Answer
Answer: C

121. X and Y are partners. X draws a fixed amount at the beginning of every month. Interest on
drawings is charged @8% p.a. At the end of the year interest on X’s drawings amounts to
*₹2,600. Drawings of A’were :
(A) ₹8,000 p.m.
(B) ₹7,000 p.m.
(C) ₹6,000 p.m.
(D) ₹5,000 p.m.

Answer
Answer: D

122. A and B are partners. B draws a fixed amount at the end of every month. Interest on
drawings is charged @15% p.a. At the end of the year interest on B’s drawings amounts to
₹8,250. Drawings of B were :
(A) ₹12,000 p.m.
(B) ₹10,000 p.m.
(C) ₹9,000 p.m.
(D) ₹8,000 p.m.

Answer
Answer: B

123. A and B are partners with a profit-sharing ratio of 2 : 1 and capitals of ₹3,00,000 and
₹2,00,000 respectively. They are allowed 6% p.a. interest on their capitals and are charged
10% p.a. interest on their drawings. Their drawings during the year were A ₹60,000 and B
₹40,000. B’s share of net profit as per profit and loss appropriation account amounted to
₹40,000. Net Profit of the firm before any appropriations was :
(A) ₹1,22,000
(B) ₹1,13,000
(C) ₹1,17,000
(D) ₹1,45,000

Answer
Answer: D

124. A and B are partners in a firm. They are entitled to interest on their capitals but the net
profit was not sufficient for this interest, then the net profit will be distributed among partners in :
(CPT, Dec. 2012)
(A) Agreed Ratio
(B) Profit Sharing Ratio
(C) Capital Ratio
(D) Equally

Answer
Answer: C
Account
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(
i)Feat
uresorChar
act
eri
sti
csofPar
tner
shi
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1.Featuresofapartnershi
pf i
rm ar
e:
(A)Twoormor epersonsarecarryi
ngcommonbusinessunderanagr
eement
.
(B)Theyar eshar
ingprofit
sandlossesint
hef i
xedr
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o.
(C)Businessiscarr
iedbyal l
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ingt
oral
lasanagent.
(D)Alloftheabove.
Answer :
: D
2.Foll
owi ngar eessent i
al el
ement sofapar t
ner shipf i
rm except:(CPT; June2012)
(A)Atl eastt woper sons
(B)Ther ei sanagr eementbet weenal l partner s
(C)Equal shar eofpr of itsandl osses
(D)Par tnershi pagr eementi sf orsomebusi ness.
Answer :
: C
3.Incaseofpar t
ner shi ptheactofanypar tneri s: (
C.S.Foundat ionDec.2012)
(A)Bindi ngonal lpar tner s
(B)Bindi ngont hatpar tneronl y
(C)Bindi ngonal lpar tner sexceptt hatpar ticularpar tner
(D)Noneoft heabov e
Answer :A
4.Whi choft hef oll
owi ngst atementi st r
ue?
(A)ami norcannotbeadmi tt
edasapar tner
(B)ami norcanbeadmi t
tedasapar t
ner ,onlyi ntothebenef i
tsoft hepar t
nership
(C)ami norcanbeadmi t
tedasapar t
nerbuthi srightsandl i
abil
iti
esaresameofadul tpartner
(D)noneoft heabov e
Answer :B
5.Oust ensi blepartner sar ethosewho
(A)donotcont r
ibuteanycapi talbutgetsomeshar eofpr ofitforlendi
ngt heirnamet ot hebusiness
(B)cont ributev erylesscapi t
al butgetequal pr ofi
t
(C)donotcont r
ibuteanycapi talandwi t
houthav i
nganyi nterestinthebusi ness,l
endt heirnamet othe
business
(D)cont ribut emaxi mum capi talofthebusi ness
Answer :C
6.Sleepi ngpar tnersar et hosewho
(A)takeact ivepar tint heconductoft hebusi nessbutpr ovidenocapi tal.Howev er,sal
ar yispaidtothem.
(B)donott akeanypar tint heconductoft hebusi nessbutpr ovi
decapi talandsharepr ofit
sandl ossesin
theagr eedr ati
o
(C)takeact ivepar tint heconductoft hebusi nessbutpr ovidenocapi tal.Howev er,sharepr of
it
sandl osses
i
nt heagr eedr ati
o.
(D)donott akeanypar tint heconductoft hebusi nessandcont ribut
enocapi tal
.Howev er,shareprofi
ts
andlossesi ntheagr eedr at
io.
Answer :B
7.Ther el ati
onofpar tnerwi ththef i
rmi sthatof :
(A)AnOwner
(B)AnAgent
(C)AnOwnerandanAgent
(D)Manager
Answer :C
8.Whatshoul dbet hemi nimum numberofper sonst oform aPar t
nership:
(A)2
(B)7
(C)10
(D)20
Answer :A
9.Numberofpar tnersinapar tnershipfirm maybe:
(A)Maxi mum Two
(B)Max imum Ten
(C)Maxi mum OneHundr ed
(D)Max imum Fi fty
Answer :D
10,Liabi l
ityofpar tneris:
(A)Limi ted
(B)Unl i
mi ted
(C)Det ermi nedbyCour t
(D)Det ermi nedbyPar tnershipAct
Answer :B
11.Whi choneoft hef ollowingi sNOTanessent i
alfeatureofapar t
nership?
(A)Ther emustbeanagr eement
(B)Ther emustbeabusi ness
(C)Thebusi nessmustbecar r
iedonf orprofit
s
(D)Thebusi nessmustbecar r
iedonbyal lthepar tners
Answer :D
12.X, YandZar epar t
ner sshar i
ngpr ofit
sandl ossesequal l
y.Thei
rcapitalbal
ancesonMar ch,31,
2012
are₹80, 000, ₹60,000and₹40, 000r espectively.Theirpersonalassetsarewor t
hasf oll
ows:X—₹20, 000,Y
—₹15, 000andZ—₹10, 000.Theext entoft heirli
abil
ityinthefi
rm wouldbe: (C.S.Foundat
ion;June2013)
(A)X—₹80, 000: Y—₹60, 000: andZ—₹40, 000
(B)X—₹20, 000: Y—₹15, 000: andZ—₹10, 000
(C)X—₹1, 00, 000: Y—₹75, 000: andZ—₹50, 000
(D)Equal
Answer :B
13.Ev erypar tnerisboundt oat tenddi li
gentlytohi sintheconductof
thebusi ness.
(A)Right s
(B)Meet i
ngs
(C)Capi tal
(D)Dut ies
Answer :D
(i
i)Partner shi pDeed
14.For mi ngaPar tnershipDeedi s:
(A)Mandat ory
(B)Mandat oryinWr i
ti
ng
(C)NotMandat or y
(D)Noneoft heAbov e
Answer :C
15.Par tner shipDeedi sal socal led
(A)Prospect us
(B)ArticlesofAssoci ation
(C)Princi plesofPar tner shi p
(D)Ar t
iclesofPar tner shi p
Answer :D
16.Whi choft hef ollowi ngi snoti ncor por atedi nt hePar t
nershi pAct?
(A)prof i
tandl ossar et obeshar edequal l
y
(B)noi nt eresti st obechar gedoncapi tal
(C)allloansar et obechar gedi nter est@6%p. a.
(D)alldr awi ngsar et obechar gedi nterest
Answer :D
17.Wheni st hePar tner shi pActenf orced?
(A)whent her ei snopar tner shipdeed
(B)wher et herei sapar tner shipdeedbutt herear ediff
erencesofopi ni onbetweent hepart
ners
(C)whencapi tal cont ribut ionbyt hepar tnersv ar i
es
(D)whent hepar tner ’
ssal aryandi nterestoncapi t
al ar
enoti ncorporatedi nthepartner
shipdeed
Answer :A
18.IntheabsenceofPar tner shi pDeed, thei nter estisall
owedonpar tner’
scapi t
al:(
CPT;June2011)
(A)@ 5%p. a.
(B)@ 6%p. a.
(C)@ 12%p. a.
(D)Noi nt er esti sal lowed
Answer :D
19.Intheabsenceofapar tner shi pdeed, theal lowabl erat
eofi nt
erestonpar t
ner’
sloanaccountwil
lbe:
(A)6%Si mpl eI nter est
(B)6%p. a.Si mpl eI nt er est
(C)12%Si mpl eI nt erest
(D)12%CompoundedAnnual l
y
Answer :B
20.AandBar epar tner si npar tner shipf irm wi thoutanyagr eement .Ahasgi venaloanof₹50,000tothe
fi
rm.Att heendofy earl osswasi ncur redi nt hebusi ness.Fol lowinginterestmaybepai dtoAbyt hefi
rm:
(A)@5%PerAnnum
(B)@ 6%PerAnnum
(C)@ 6%PerMont h
(D)Ast her ei sal ossi nt hebusi ness, i
nter estcan’ tbepai d
Answer :B
21.AandBar epar tner si napar tner shipf irm wi thoutanyagr eement.Ahaswi t
hdrawn?50,000outofhis
Capitalasdr awi ngs.I nt er estondr awi ngsmaybechar gedf r
om Abyt hef i
rm:
(A)@ 5%PerAnnum
(B)@ 6%PerAnnum
(C)@ 6%PerMont h
(D)Noi nt er estcanbechar ged
Answer :D
22.AandBar epar tner si napar tner shipf irm wi thoutanyagr eement.Adev otesmor eti
mef ort
hefir
m as
compar et oB.Awi ll gett hef ollowi ngcommi ssioni nadditi
ont oprofi
ti nthefir
m’sprofi
t:
(A)6%ofpr ofit
(B)4%ofpr ofi
t
(C)5%ofpr ofi
t
(D)Noneoft heabov e
Answer :D
23.Intheabsenceofpar tner shipdeed, thef oll
owi ngrul
ewi l
l apply:
(A)Noi nt erestoncapi tal
(B)Pr ofitshar ingi ncapi tal r
ati
o
(C)Pr ofitbasedsal aryt owor kingpar tner
(D)9%p. a.interestondr awings
Answer : A
24.I ntheabsenceofagr eement ,partner sarenotent it
ledt o:
(A)Sal ary
(B)Commi ssion
(C)Equal sharei npr of it
(D)Bot h( a)and( b)
Answer : D
25.I nterestoncapi tal wi l
lbepai dt ot hepar tnersi fprov i
dedf orinthepar tnershipdeedbutonl youtof :
(C.S.Foundat i
on; December ,2012)
(A)Pr ofits
(B)Reser v es
(C)Accumul atedPr of its
(D)Goodwi l
l
Answer : A
26.Whi choneoft hef ol l
owi ngitemscannotber ecor dedi ntheprof i
tandl ossappr opr i
ati
onaccount ?
(A)Inter estoncapi tal
(B)Inter estondr awi ngs
(C)Rentpai dt opar tner s
(D)Par t
ner ’
ssalar y
Answer : C
27.I fanyl oanoradv ancei sprov idedbypar t
nert hen, balanceofsuchLoanAccountshoul dbet ransferred
to:
(A)B/ SAsset sside
(B)B/ SLi abi li
tySide
(C)Par t
ner ’
sCapi tal A/ c
(D)Par t
ner ’
sCur rentA/ c
Answer : B
28.A, BandCwer ePar tnerswi thcapi t alsof₹50, 000; ₹40,000andRs. 30, 000r espectivel
ycar ryingon
businessi npar t
ner shi p.Thef i
rm’ srepor tedpr of
itf orthey earwas₹80, 000.Asperpr ov i
sionoft heIndian
Partner shi pAct ,1932, findoutt heshar eofeachpar tnerint heabov eamountaf tertakingint oaccountt hat
noi nteresthasbeenpr ov i
dedonanadv ancebyAof₹20, 000i nadditiont ohi scapitalcont r
ibution.
(A)₹26, 267f orPar t
nerBandCand₹27, 466f orPar tnerA.
(B)₹26, 667eachpar tner .
(C)₹33, 333f orA₹26, 667f orBand₹20, 000f orC.
(D)₹30, 000eachpar tner .
Answer : A
29.X, Y, andZar epar tner sinaf i
rm.Att het i
meofdi vi
sionofpr ofitfort hey ear,therewasdi sput e
betweent hepar tner s.. Profitbef oreint erestonpar t
ner ’
scapi tal
was₹6, 000andYdet erminedi nt er
est
@24%p. a.onhi sl oanof₹80, 000.Ther ewasnoagr eementont hispoi nt.Calculatetheamountpay ablet o
X,Y, andZr espect ively .
(A)₹2, 000t oeachpar tner.
(B)Lossof₹4, 400f orXandZ; Twi ll
take₹14, 800.
(C)₹400f orX, ₹5,200f orYand₹400f orZ.
(D)Noneoft heabov e.
Answer : C
30.X, Y, andZar epar tner sinaf i
rm.Att het i
meofdi vi
sionofpr ofitfort hey ear,therewasdi sput e
betweent hepar tner s.Pr ofi
tbef oreint erestonpar tner’scapi t
alwas₹6, 00,000andZdemandedmi ni
mum
profitof₹5, 00,000ashi sfinancial posit i
onwasnotgood.Howev er,t
her ewasnowr it
tenagr eementont his
point
.
(A)Otherpar
tnerswil
lpayZtheminimum pr
ofitandwill
sharet
hel
ossequal
l
y.
(B)Otherpar
tnerswil
lpayZtheminimum pr
ofitandwil
lsharet
hel
ossi
ncapital
rat
io.
(C)XandTwi l
ltake₹50,
000eachandZwi l
ltake₹5,00,
000.
(D)₹2,00,
000toeachofthepart
ners.
Answer :D

31.On1stJune2018apar tnerintr
oducedi nthef ir
m addi ti
onalcapital₹50,000.I
ntheabsenceof
part
ner shi pdeed, on31stMar ch2019hewi llreceiveinterest:
(A)₹3,000
(B)Zer o
(C)₹2,500
(D)₹1,800
Answer : B
32.On1stJanuar y2019, apar t
neradv ancedal oanof₹1, 00,
000t othef i
rm.Intheabsenceofagr
eement
,
i
nterestonl oanon31stMar ch2019wi l
lbe:
(A)Nil
(B)₹1,500
(C)₹3,000
(D)₹6,000
Answer : B
33.Apar t
nerintroducedaddi ti
onal capi tal of₹30, 000andadv ancedal oanof₹40, 000t
ot hef
ir
m att
he
beginningoft hey ear.Partnerwi llr
ecei vey ear’sinterest:
(A)₹4,200
(B)₹2,400
(C)Nil
(D)₹1,800
Answer : B
34.Int heabsenceofpar tner shipdeed, par tnersshar epr ofi
tsorlosses:
(A)Inther ati
ooft heirCapi tals
(B)Inther ati
odeci dedbyt hecour t
(C)Equal l
y
(D)Inther ati
ooft i
medev oted
Answer : C
35.Int heabsenceofPar tner shipDeed:
(A)Inter estwillnotbechar gedonpar tner’sdr awi ngs
(B)Int
er estwillbechar [email protected]%p. a.onpar tner’
sdr awings
(C)Inter estwillbechar ged@ 6%p. a.onpar t
ner ’
sdrawi ngs
(D)Inter estwillbechar ged@ 12%p. a.onpar tner’
sdr awings
Answer : A
36.Int heabsenceofexpr essagr eement ,i
nt erest@ 6%p. a.isprovi
ded:
(A)Onopeni ngbal anceofpar tner’
scapi tal account s
(B)Oncl osingbal anceofpar tner’
scapi tal account s
(C)Onl oangi venbypar t
ner stot hef i
r m
(D)Onopeni ngbal anceofpar tner’
scur r
entaccount s
Answer : C
37.Whi choft hef oll
owingi temsar er ecor dedi nthePr ofi
t&LossAppr opriati
onAccountofapart
ner
shi
p
fi
rm?
(A)Inter estonCapi t
al
(B)Salar yt oPartner
(C)Transf ertoReser ve
(D)Alloft heabov e
Answer :D
38.Isr entpai dt oapar tnerappr opr i
ationofpr ofit
s?
(A)Itisappr opriationofpr of i
t
(B)Itisnotappr opr i
at i
onofpr ofit
(C)Ifpar tner’scont r
ibut ionascapi talismaxi mum
(D)Ifpar tnerisawor kingpar tner.
Answer :B
(i
ii
)Cal culationofPr ofitandDi vi
si onofPr ofitamongpar tners
39.Accor dingt oPr of itandLossAccount ,thenetpr of i
tf orthey earis₹1,50,000.Thet ot alintereston
partner ’
scapi talis₹18, 000andi nt er estonpar tner’sdr awi ngsi s₹2,000.Thenetpr ofi
tasperPr of
itand
LossAppr opri
ationAccountwi ll
be:
(A)₹1, 66,000
(B)₹1, 70,
000
(C)₹1, 30,000
(D)₹1, 34,000
Answer :D
40.Accor dingt oPr of itandLossAccount ,thenetpr of i
tf orthey earis₹4,20,000.Salaryofapar t
neris
₹5,000permont handt hecommi ssi onofanot herpar tneri s₹10,000.Thei nt
erestondr awi ngsofpar tner
s
i
s₹4, 000.Thenetpr of itasperPr of itandLossAppr opr i
at i
onAccountwi l
lbe:
(A)₹3, 54,000
(B)₹3, 46,
000
(C)₹4, 09,000
(D)₹4, 01,000
Answer :A
41.AandBar epar tner s.Accor dingt oPr ofi
tandLossAccount ,thenetpr ofi
tforthey eari s₹2, 00,
000.The
totalinterestonpar tner ’
sdr awingsi s₹1, 000.Assal ar yis₹40, 000pery earandB’ ssal ar yis₹3, 000per
mont h.Thenetpr of itasperPr ofitandLossAppr opr iati
onAccountwi l
l be:
(A)₹1, 23,000
(B)₹1, 25,
000
(C)₹1, 56,000
(D)₹1, 58,000
Answer :B
42.Accor dingt oPr of itandLossAccount ,thenetpr of i
tf orthey earis₹1,40,000.Thet ot alintereston
partner ’
scapi talis?8, 000andapar tneristobeal lowedcommi ssionof₹5, 000.Thet ot alintereston
partner ’
sdr awingsi s₹1, 200.Thenetpr ofi
tasperPr ofitandLossAppr opr i
ati
onAccountwi l
lbe:
(A)₹1, 28,200
(B)₹1, 44,
200
(C)₹1, 25,800
(D)₹1, 41,800
Answer :A
43.Sangeet aandAnki taar epar tner si nafirm.Sangeet a’scapi t
al i
s₹70, 000andAnki t a’sCapi talis
₹50.000.Fi r
m’ spr ofitis₹60, 000.Anki tashar einpr ofitwi llbe:
(A)₹25, 000
(B)₹30, 000
(C)₹35, 000
(D)₹20, 00
Answer :B
44.A, BandCar epar tner s.A’ scapi talis₹3,00,000andB’ scapitalis₹1,00,000.Chasnoti nv estedany
amountascapi talbutheal onemanagest hewhol ebusi ness.Cwant s? 30,000p.a.assal ary.Firm earneda
profitof₹1, 50,000.Howmuchwi ll beeachpar tner’sshar eofpr of i
t:
(A)A₹60, 000; B₹60, 000; C₹Ni l
(B)A₹90, 000; B₹30, 000; C₹Ni l
(C)A₹40, 000; B₹40, 000andC₹40, 000
(D)A₹50, 000; B₹50, 000andC₹50, 000.
Answer :D
45.Netpr ofitofaf i
rmi s₹49, 500.Manageri sent i
tledt oacommi ssionof10%onpr ofi
tsbef or
echar ging
hiscommi ssion.Manager ’sCommi ssi onwi l
lbe:
(A)₹4,950
(B)₹4,500
(C)₹5,500
(D)₹495
Answer :A
46.Netpr ofitofaf i
rmi s₹79, 800.Manageri sent i
tledt oacommi ssionof5%ofpr of
it
saf t
erchar ginghis
commi ssion.Manager ’sCommi ssi onwi llbe:
(A)₹4,200
(B)₹380
(C)₹3,990
(D)₹3,800
Answer :D
47.Ram andShy am ar epar t
ner si nt heratioof3: 2.Bef orepr ofitdistri
bution, ‘Ram i senti
tledto5%
commi ssionoft henetpr ofit(af terchar gi
ngsuchcommi ssi on).Bef orechar gi ngcommi ssion,fi
rm’ sprofi
t
was₹42, 000.Shy am’ sshar ei npr ofitwi l
lbe:
(A)₹16, 000
(B)₹24, 000
(C)₹26, 000
(D)₹16, 400
Answer :A
48.A, BandCar epar tner sint her atioof5: 3: 2.Bef oreB’ ssal ar yof₹17, 000f ir
m’ sprofi
tis₹97, 000.How
muchi nt otalBwi llreceiv efrom t hef i
rm?
(A)₹17, 000
(B)₹40, 000
(C)₹24, 000
(D)₹41, 000
Answer :D
Hint:Tot alamountr ecei vedbydi epar tnerwillbeSal ar y+Shar eofPr ofi
t
49.A, BandCar epar tner sinaf irm wi thoutanyagr eement .Theyhav econt ributed750, 000,730,000and
720,000bywayofcapi t
al inthef irm.Awasunabl et owor kf orsi xmont hsi nay earduet oill
ness.Att he
endofy ear ,f
irm earnedapr ol itof715, 000.A’sshar eint hepr ofitwillbe:
(A)77. 500
(B)73,750
(C)75, 000
(D)72, 500
Answer :C
50.Inapar t
nershi plir
m, partnerAi sent it
ledamont hlysal aryof₹7, 500.Att heendoft hey ear,f
irm earned
apr ofi
tof₹75, 000af t
erchar gingA’ ssal ary.Ifthemanageri sent itl
edacommi ssionof10%ont henet
profitafterchar ginghi scommi ssion, Manager ’
scommi ssionwi llbe:
(A)₹7,500
(B)₹16, 500
(C)₹8,250
(D)₹15, 000
Answer :D
51.Seet aandGeet aar epar tner sshar ingprofit
sandl ossesi nther atio4: 1.Meet awasmanagerwho
receivedt hesal aryof₹4, 000p. m.i naddi t
iont oacommi ssionof5%onnetpr ofi
tsaf t
erchar gi
ngsuch
commi ssion.Pr ofitfort hey eari s₹6, 78,000bef orechar gingsal ary.Findthet otalr emunerationofMeet a.
(A)₹78, 000
(B)₹88, 000
(C)₹87, 000
(D)₹76, 000
Answer : A
52.Whi choft hef oll
owi ngst atementi strue?
(A)Fixedcapi tal accountwi llalway shav eacr editbalance
(B)Cur rentaccountcanhav eaposi t
iveoranegat i
vebal ance
(C)Fluct uatingcapi t
al accountcanhav eaposi ti
veoranegat ivebal
ance
(D)Alloft heabov e
Answer : D
(i
v)Capi talAccount sofPar tners
53.Whi chaccount sar eopenedwhent hecapi tal
sar efixed?
(A)Onl yCapi tal Account s
(B)Onl yCur r
entAccount s
(C)Capi talAccount saswel lasCur rentAccount s
(D)EitherCapi tal Account sorCur r
entAccount s
Answer : C
54.Whi chaccount sar eopenedwhent hecapi tal
sar efluctuati
ng?
(A)Onl yCapi tal Account s
(B)Onl yCur r
entAccount s
(C)Capi talAccount saswel lasCur rentAccount s
(D)EitherCapi tal Account sorCur r
entAccount s
Answer : A
55.Bal anceofpar tner’scur rentaccount sare:
(A)Debi tbalance
(B)Credi tbalances
(C)Debi torCr edi tbal ances
(D)Nei therDebi tnorcr editbalances
Answer : C
56.Whi chi t
em i sr ecor dedont hecr editsideofpar t
ner’scur r
entaccount s:
(A)Inter estonFanner ’sCapi tals
(B)Salar iesofPar tners
(C)Shar eofpr of i
tsofPar tner s
(D)Alloft heAbov e
Answer : D
57.IfthePar tner s’Capi talAccount saref i
xed‘salarypay abletopartner’wil
lberecor
ded:
(A)Ont hedebi tsi deofPar t
ner s’Cur r
entAccount
(B)Ont hedebi tsi deofPar t
ner s’CapitalAccount
(C)Ont hecr edi tsi deofPar tner s’CurrentAccount
(D)Noneoft heabov e
Answer : C
58.ItthePar tner ’
sCapi talAccount saref i
xed,inter
estoncapi t
alwillberecorded:
(A)Ont hecr edi tsi deofCur rentAccount
(B)Ont hecr edi tsi deofCapi tal Account
(C)Ont hedebi tsi deofCur r
entAccount
(D)Ont hedebi tsi deofCapi talAccount
Answer : A
59.IfthePar tner ’
sCapi talAccount saref l
uctuati
ng, i
nt hatcasef ol
l
owi ngitem/it
emswil
lber
ecor
dedi
n
thecredi tsideofcapi talaccount s:
(A)Inter estoncapi tal
(B)Salar yofpar tners
(C)Commi ssionofpar t
ner s
(D)Al loft heabov e
Answer :D
60.Interestonpar tner’scapi t
alswi llbedebi t
edt o:
(A)Pr ofitandLossAccount
(B)Pr ofi
tandLossAppr opr i
ati
onAccount
(C)Par tner ’
sCapi talAccount s
(D)Noneoft heAbov e
Answer :B
61.Interestonpar tner’scapi t
alswi llbecreditedto:
(A)Pr ofitandLossAccount
(B)Pr ofi
tandLossAppr opr i
ati
onAccount
(C)InterestAccount
(D)Par tner ’
sCapi talAccount s
Answer :D
62.Fort hef ir
mi nterestondr awi ngsi s
(A)Capi tal Pay ment
(B)Expenses
(C)Capi tal Recei pt
(D)Income
Answer :D
63.InterestonPar tner’sdr awingswi llbedebi tedto:
(A)Pr ofitandLossAccount
(B)Pr ofi
tandLossAppr opr i
ati
onAccount
(C)Par tner ’
sCur rentAccount
(D)InterestAccount
Answer :C
64.Whenpar tner s’capital account sarefloating,whichoneofthefol
l
owingit
emswil
lbewri
tt
enont
he
creditsideoft hepar tners’ capitalaccount s?:
(A)Interestondr awi ngs
(B)Loanadv ancedbypar t
nert othef ir
m
(C)Par tner ’
sshar ei nthef irm’sloss
(D)Sal aryt ot heact i
vepar tners
Answer :D
65.Whenpar tner s’capital account sarefixed, whichoneofthefol
l
owingit
emswil
lbewri
tt
enint
he
partner’scapi talaccount ?:
(A)Par tner ’
sDr awings
(B)Addi tional capi talintroducedbyt hepar tnerint hef
ir
m
(C)Loant akenbypar tnerf rom thef i
rm
(D)LoanAdv ancedbypar t
nert ot hef i
rm
Answer :B
66.Interestonpar tner’sdrawi ngswi llbecr edit
edt o
(A)Pr ofitandLossAccount
(B)Pr ofi
tandLossAppr opr i
ati
onAccount
(C)Par tner ’
sCapi talAccount s
(D)Noneoft heAbov e
Answer :B
67.Fort hef ir
mi nterestoncapi tal i
s:
(A)Capi tal Pay ment
(B)Capi tal Recei pt
(C)Loss
(D)Income
Answer :C
(v)InterestonCapi tal
68.On1stApr i
l2018, 2fsCapi talwas₹2, 00,000.On1stOct ober2018, hei ntr
oducesaddi t
ionalcapitalof
₹1,00,000.I nter
estoncapi tal@ 6%p. a.on31stMar ch, 2019wi llbe:
(A)₹9, 000
(B)₹18, 000
(C)₹10, 500
(D)₹15, 000
Answer :D
69.XandYar epar tner sint her at
ioof3: 2.Thei rcapi t
alsar e?2,00,000and₹1, 00,000r espect i
vely
.Interest
oncapi t
alsi sall
owed@ 8%p. a.Firm earnedapr ofi
tof? 60,000f ortheyearended31stMar ch2019.
InterestonCapi tal wi l
lbe:
(A)X₹16, 000; Y₹8, 000
(B)V₹8. 000; Y₹4, 000
(C)X₹14, 400; Y₹9, 600
(D)NoI nter estwi llbeal lowed
Answer :A
70.XandYar epar t
ner si nther atioof3: 2.Thei rcapitalsar e₹2,00,000and₹1, 00,000r espectivel
y.
Interestoncapi t
al sisal lowed@ 8%p. a.Firm ear nedapr ofi
tof₹15, 000f orthey earended31stMar ch
2019.I nter estonCapi tal will
be:
(A)X₹16, 000; Y₹8, 000
(B)X₹9, 000; Y₹6, 000
(C)X₹10, 000; Y₹5, 000
(D)NoI nter estwi llbeal lowed
Answer :C
71.XandYar epar t
ner si nther atioof3: 2.Thei rcapitalsar e?2,
00, 000and₹1, 00, 000r especti
vely.
Interestoncapi t
al sisal lowed@ 8%p. a.Firmi ncurredal ossof₹60, 000f orthey earended31stMar ch
2019.I nter estonCapi tal will
be:
(A)X₹16, 000; Y₹8, 000
(B)A₹8, 000; Y₹4, 000
(C)X₹14, 400; Y₹9, 600
(D)NoI nter estwi llbeal lowed
Answer :D
72.XandYar epar t
ner si nther atioof3: 2.Thei rcapitalsar e₹2,00,000and₹1, 00,000r espectivel
y.
Interestoncapi t
al sisal lowed@ 8%p. a.Firm ear nedapr ofi
tof₹15, 000f orthey earended31stMar ch
2019.Asperpar t ner shipagr eement ,
interestoncapi talist r
eatedachar geonpr ofi
ts.InterestonCapi tal
willbe:
(A)X₹16, 000; Y₹8, 000
(B)X₹9, 000; Y₹6, 000
(C)X₹10, 000; Y₹5, 000
(D)NoI nter estwi llbeal lowed
Answer :A
73.AandBcont r i
but e₹1, 00,000and? ₹60,000r espect i
v elyinapar tner
shi pfi
rm bywayofcapi t
alonwhi ch
theyagr eet oallowi nterest@ 8%p. a.Thei rprofitorlossshar i
ngr atioi
s3: 2.Thepr ofi
tatt heendoft he
yearwas₹2, 800bef oreal lowingi nterestoncapi tal
.Ifther eisacl earagreementt hatinterestoncapi talwil
l
bepai dev eni ncaseofl oss, thenS’ sshar ewill be:
(A)Pr ofit₹6, 000
(B)Pr ofit₹4, 000
(C)Loss₹6, 000
(D)Loss₹4, 000
Answer :D
(vi
)[nter estonDr awi ngs
74.Par tnersar esupposet opayi nt
erestondr awi ngonlywhenbyt he
(A)Prov ided, Agr eement
(B)Permi tt
ed, Invest ors
(C)Agr eed, Par tners
(D)‘
A’ &‘ C’ abov e
Answer : D
75.Wher ewi l
l y
our ecor dinterestondr awi ngs: (CPT; June2011)
(A)Debi tSi deofPr of i
t&LossAppr opriat i
onAccount
(B)Credi tSi deofPr ofit&LossAppr opriat i
onAccount
(C)Credi tSi deofPr of i
t&LossAccount
(D)Debi tSi deofCapi tal/CurrentAccountonl y.
Answer : B
76.Howwoul dyoucl oset hePar tner’
sDr awingAccount :
(A)Byt ransf ert oCapi talorCur rentAccountDebi tSide.
(B)Byt ransf ert oCapi talAccountCr editSi de.
(C)Byt ransf ert oCur r
entAccountCr editSi de.
(D)Eit
her‘ B‘ or‘C’.
Answer : A
77.Ifdat eofdr awi ngsoft hepar tner’
sisnotgi veni nthequestion,int
eresti
schar gedforhowmucht i
me
(A)1mont h
(B)3mont hs
(C)6mont hs
(D)12mont hs
Answer : C
78.Vikasi sapar tneri naf ir
m.Hi sdrawi ngsdur ingt heyearended31stMar ch,2019wer e? 72,
000.If
i
nterestondr awi ngsi schar ged@ 9%p. a.t heinterestchargedwi l
lbe:
(A)₹324
(B)₹6,480
(C)₹3,240
(D)₹648
Answer : C
79.Ifaf ixedamounti swi t
hdr awnbyapar tneront hefi
rstdayofev er
ymont h,i
nterestonthetotalamount
i
schar gedf or……………mont hs:
(A)6
(B)61/2
(C)51/ 2
(D)12
Answer : B
80.Ifaf ixedamounti swi t
hdr awnbyapar tneront hel
astdayofev erymonth, i
nterestonthetotal
amount
i
schar gedf or……………mont hs:
(A)12
(B)61/ 2
(C)51/ 2
(D)6
Answer : C
81.Ifaf ixedamounti swi t
hdr awnbyapar tnerint hemiddleofev erymonth,int
erestonthet ot
alamountis
chargedf or……………mont hs
(A)6
(B)61/ 2
(C)51/ 2
(D)12
Answer : A
82.Inapar tnershipf irm,apar tnerwi t
hdrew₹5, 000permont hont hefirstdayofev erymonthdur ingt he
yearforper sonal expenses.I finter
estondr awingsischar ged@ 6%p. a.t hei nterestchargedwill be: (C.S.
Foundat i
on, Dec.2012)
(A)₹3,600
(B)₹1,950
(C)₹1,800
(D)₹1,650
Answer :B
83.Ajayi sapar tneri naf i
rm.Hewi thdrew₹2, 000permont hont hel astdayofev erymont hduringt hey ear
ended31stMar ch, 2019.Ifinterestondr awi ngsischarged@ 9%p. a.thei nterestchar gedwil
lbe:
(A)₹990
(B)₹1,080
(C)₹1,170
(D)₹2,160
Answer :A
84.Sushi lisapar tneri nafirm.Hewi t
hdrew₹4, 000permont hinthemi ddleofev erymont hduringt hey ear
ended31stMar ch, 2019.Ifinterestondr awi ngsischarged@ 8%p. a.thei nterestchar gedwil
lbe:
(A)₹2,080
(B)₹1,760
(C)₹3,840
(D)₹1,920
Answer :D
85.Iffi
xedamounti swi t
hdrawnbyapar tneront hefi
rstdayofeachquar ter,interestonthetotal amount
i
schar gedf or……………. .mont hs
(A)4.5
(B)6
(C)7.5
(D)3
Answer :C
86.Ifaf i
xedamounti swi thdrawnbyapar tneronthelastdayofeachquar t
er ,i
nterestonthetot alamount
i
schar gedf or………………mont hs
(A)6
(B)4.5
(C)7.5
(D)3
Answer :B
87.Ifaf i
xedamounti swi thdrawnbyapar tnerineachquar ter,
interestont het otalamountischar gedf or
………………. .mont hs
(A)3
(B)6
(C)4.5
(D)7.5
Answer :B
88.Anur adhai sapar tnerinaf i
rm.Shewi thdrew₹6,000i nthebegi nningofeachquar terdur
ingt hey ear
ended31stMar ch, 2019.Interestonherdr awings@ 10%p. a.willbe:
(A)₹900
(B)₹1,200
(C)₹1,500
(D)₹600
Answer :C
89.Bipasai sapar tnerinaf ir
m.Shewi thdrew₹6, 000attheendofeachquar terdur i
ngtheyearended31st
March, 2019.I nter estonherdr awings@ 10%p. a.wi
llbe:
(A)₹900
(B)₹600
(C)₹1,500
(D)₹1,200
Answer :A
90.Char ul
atai sapartnerinaf ir
m.Shewi t
hdrew₹10, 000ineachquar terdur i
ngt heyearended31stMar ch,
2019.Interestonherdr awi ngs@ 9%p. a.willbe:
(A)₹1,350
(B)₹2,250
(C)₹900
(D)₹1,800
Answer :D
91.Ifequal amounti swithdrawnbyapar tnerinthebeginningofeachmont hdur i
ngaper iodof6mont hs,
i
nterestont het ot
alamountwi ll
bechar gedfor………………mont hs
(A)2.5
(B)3
(C)3.5
(D)6
Answer :C
92.Ifequal amounti swithdrawnbyapar tnerintheendofeachmont hdur ingaper i
odof6mont hs,
i
nterestont het ot
alamountwi ll
bechar gedfor…………………mont hs
(A)2.5
(B)3
(C)3.5
(D)6
Answer :A
93.Ifequal amounti swithdrawnbyapar tnerineachmont hduringaper i
odof6mont hs,int
erestonthe
tot
al amountwi l
lbechar gedfor……………mont hs
(A)6
(B)3
(C)2.5
(D)3.5
Answer :B
94.Xi sapar tnerinaf i
rm.Hewi thdrewr egul
arly₹1,000atthebeginningofev erymont hforthesixmont hs
ending31stMar ch,2019.Ifinterestondr awingsi scharged@ 8%p. a.theint erestchargedwi l
lbe:
(A)₹240
(B)₹140
(C)₹100
(D)₹120
Answer :B
95.Yi sapar tnerinaf i
rm.Hewi thdr
ewr egul
arly₹3,000attheendofev erymont hforthesixmont hs
ending31stMar ch,2019.Ifinterestondr awingsi scharged@ 10%p. a.thei nterestchargedwi l
lbe:
(A)₹375
(B)₹450
(C)₹525
(D)₹900
Answer :A
96.Zi sapar tnerinaf i
rm.Hewi thdr
ewr egul
arly?2,000everymonthf orthesi xmont hsendi ng31stMarch,
2019.Ifint
er estondr awingsischar ged@ 8%p. a.theinter
estchargedwi llbe:
(A)₹480
(B)₹280
(C)₹200
(D)₹240
Answer :D
97.Apar tnerwi thdr aws₹8, 000eachon1stApr i
l and1stOct .Interestonhi sdr awi ngs@ 6%p. a.on31st
Mar chwi l
lbe:
(A)₹480
(B)₹720
(C)₹240
(D)₹960
Answer :B
98.Apar tnerdr aws₹2, 000eachon1stApr i
l 2018, 1stJul y2018, 1stOct ober, 2018and1stJanuar y2019.
Fort hey earended31stMar ch, 2019i nt
erestondr awi ngs@ 8%perannum wi ll be:
(A)₹540
(B)₹320
(C)₹960
(D)₹400
Answer :D
99.Apar tnerwi thdr awsf r
om f i
r m ₹7,000att heendofeachmont h.Att herateof6%perannum t otal
i
nt er
estwi llbe:
(A)₹5, 040
(B)₹2, 310
(C)₹3, 570
(D)₹1, 370
Answer :B
(vii
)Adj ustment sint heCl osedAccount s
100.AnuandTanuar eequal par tnerswi t
hf ixedcapi t
alsof₹2, 00,000and₹1, 00, 000r espect i
vely.Af t
er
closingt heaccount sf orthey earendi ng31st–Mar ch, 2019i twasdi scov eredt hatint erestoncapi t
als@
8%p. a.wasomi t
tedt obepr ov ided.I ntheadj ust ingent ry:
(A)Anuwi ll
becr edi tedby₹16, 000andTanuwi l
l becr editedby₹8, 000
(B)Anuwi l
lbedebi tedby₹16, 000andTanuwi l
l bedebi tedby₹8, 000
(C)Anuwi ll
becr edi tedby₹4, 000andTanuwi llbedebi tedby₹4, 000
(D)Anuwi llbedebi tedby₹4, 000andTanuwi llbecr editedby₹4, 000
Answer :C
101.SonyandRomyar eequal par t
ner swi t
hf ixedcapi talsof₹4, 00, 000and₹3, 00, 000r espectively.After
closingt heaccount sf orthey earendi ng31stMar ch, 2019i twasdi scov eredt hati nter estoncapi talswas
provided@ 8%i nst eadof10%p. a.Int headj ust i
ngent ry:
(A)Sonywi l
l becredi tedby₹8, 000andRomywi llbecr edi tedby₹6, 000.
(B)Sonywi l
l bedebi tedby₹8, 000andRomywi llbedebi tedby₹6, 000.
(C)Sonywi l
l bedebi tedby₹1, 000andRomywi llbecr edi tedby₹1, 000.
(D)Sonywi l
l becredi tedby₹1, 000andRomywi llbedebi tedby₹1, 000.
Answer :D
102.AshaandVi pashaar eequal par t
nerswi thf ixedcapi talsof₹5, 00, 000and₹2, 00, 000r espect i
vely.After
closingt heaccount sf orthey earendi ng31stMar ch2019i twasdi scov eredt hati nt erestoncapi talswas
provided@ 6%i nst eadof5%p. a.Int headjust ingent r
y:
(A)Ashawi llbedebi tedby₹1, 500andVi pashawi ll becr edi tedby₹1, 500;
(B)Ashawi l
l becredi t edby₹1, 500andVi pashawi ll bedebi tedby₹1, 500;
(C)Ashawi llbedebi tedby₹5, 000andVi pashawi ll bedebi tedby₹2, 000;
(D)Ashawi llbecredi tedby₹5, 000andVi pashawi l
l becr edi tedby₹2, 000;
Answer :A
103.PandQshar ingpr ofi
tsi nt her atioof2: 1hav ef ixedcapi t
alsof₹90, 000andf 60,000r espect ively.
Aftercl osingt heaccount sfort hey earendi ng31stMar ch2019i twasdi scov er edt hati nterestoncapi tals
waspr ovided@ 6%i nsteadof8%p. a.Intheadj ust ingent ry:
(A)Pwi llbecr edit
edby₹1, 800andQwi l
lbecr edi tedby₹1, 200;
(B)Pwi llbedebi t
edby₹200andQwi l
lbecr edi t
edby₹200;
(C)Pwi llbecr edit edby₹200andQwi llbedebi t
edby₹200;
(D)Pwi llbedebi tedby₹1, 800andQwi llbedebi tedby₹1, 200;
Answer :B
104.AandBshar ingpr of i
tsi nt her atioof7: 3hav ef i
xedcapi tal
sof₹2, 00,000and₹1, 00, 000r espectivel
y.
Afterclosi ngt heaccount sf orthey earendi ng31stMar ch2019i twasdi scover
edt hatint er
estoncapi t
als
waspr ovided@ 12%i nst eadof10%p. a.I ntheadj ust i
ngent ry:
(A)Awi llbedebi tedby₹4, 000andBwi llbedebi tedby₹2, 000;
(B)Awi llbecr edit edby₹4, 000andBwi l
l becr edit edby₹2, 000;
(C)Awi llbedebi tedby₹200andBwi l
lbecr edi t
edby₹200;
(D)Awi llbecr edi tedby₹200andBwi llbedebi t
edby₹200;
Answer :D
105.Xand7ar epar tner sint her ati
oof3: 2.Thei rf ixedcapi talsar e₹2, 00,000and₹1, 00,000r espect
ively.
Afterclsoi ngt heaccount sf orthey earendi ng31stMar ch2019, itwasdi scoveredthati nterestoncapi tal
wasal l
owed@ 12%i nst eadof10%perannum.ByhowmuchamountAwi l
lbedebited/cr editedinthe
adjustmentent ry:
(A)₹600( Debi t)
(B)₹400( Cr edit)
(C)₹400( Debi t)
(D)₹600( Cr edit)
Answer :C
106.X, YandZar eequal par tnerswi t
hf i
xedcapi tal sof₹2, 00, 000, ₹3,00,000and? 4,00,000r especti
vely.
Afterclosi ngt heaccount sf orthey earendi ng31stMar ch2019i twasdi scover
edt hatint er
estoncapi t
als
@ 8%p. a.wasomi t
tedt obepr ovided.I nt headj ust ingentry:
(A)Dr .XandCr .Yby₹8, 000
(B)Cr .XandDr .Zby₹8, 000
(C)Dr .XandCr .Zby₹8. 000
(D)Cr .XandDr .Yby₹8, 000
Answer :C
107.P, QandRar cequal par tnerswi t
hf ixedcapi tal sof₹5,00, 000, ₹4,00,000and₹3, 00,000r especti
vely.
Afterclosi ngt heaccount sf orthey earendi ng31stMar ch2019i twasdi scover
edt hatint er
estoncapi t
als
waspr ovided@ 7%i nsteadof9%p. a.Int headj ust ingent r
y:
(A)Pwi llbecr edit edby₹2, 000andQwi llbedebi tedby₹2, 000.
(B)Pwi llbedebi tedby₹2, 000andQwi llbecr edi tedby₹2, 000.
(C)Pwi llbedebi tedby₹2, 000andRwi l
l becr edit edby₹2, 000.
(D)Pwi llbecr edit edby₹2, 000andRwi l
l bedebi t edby₹2, 000.
Answer :D
108.X, 7andZar eequal par tnerswi thfi
xedcapi t
al sof₹5, 00, 000, ?3,00,000and₹1, 00,000r espectiv
ely.
Afterclosi ngt heaccount sf orthey earendi ng31stMar ch2019i twasdi scover
edt hatint er
estoncapi t
als
waspr ovided@ 6%i nsteadof5%p. a.Int headj ust ingent r
y:
(A)Dr .XandCr .Zby₹2, 000
(B)Cr .XandDr .Zby₹2, 000
(C)Dr .XandCr .Yby₹2, 000
(D)Cr .XandDr .Yby₹2, 000
Answer :A
109.P, Q,andRshar ingpr of i
tsint her atioof2: 1: 1hav ef i
xedcapi talsoff 4,
00,000,₹3, 00,000and
₹2,00,000r espect ively .Af tercl osingt heaccount sf orthey earendi ng31stMar ch2019i twasdi scovered
thatinterestoncapi talswaspr ovided@ 6%i nsteadof8%p. a.Int headj ustingentry:
(A)Cr .P₹1, 000;Dr .Q₹1, 500andCr .R₹500
(B)Dr .P₹500; Cr.Q₹1, 500andDr .R₹1, 000
(C)Cr .P₹500; Dr.Q₹1, 500andCr .R₹1, 000
(D)Dr .P₹1, 000; Cr .Q₹1, 500andDr .R₹500
Answer :D
110.A, BandCshar i
ngpr ofitsint her at i
oof2: 2: 1hav efixedcapi talsof₹3, 00,000, ₹2,
00,
000and
₹1,00,000r espect iv ely .Af t
ercl osi ngt heaccount sf orthey earendi ng31stMar ch2019i twasdiscov ered
thatint erestoncapi t
al swaspr ov ided@ 12%i nsteadof10%p. a.Int headj ustingent ry:
(A)Cr .A₹1, 200; Dr .B₹800andDr .C₹400
(B)Dr .A₹1, 200; Cr .B₹800andCr .C₹400
(C)Cr .A₹800; Cr .B₹400andDr .C₹1, 200
(D)Dr .A₹800; Dr .B₹400andCr .C₹1, 200
Answer :B
111.X, Y, andZar epar tnersi nt her atioof4: 3: 2.Sal arytoX₹15, 000andt oZ₹3, 000omi tt
edandpr ofi
ts
distri
but ed.Forr ect ificat i
on, nowXwi llbecr edited:
(A)₹15, 000
(B)₹1, 000
(C)₹12, 000
(D)₹7, 000
Answer :D
(vi
ii
)Guar anteeofPr of ittoaPar t ner
112.Whenapar tneri sgi venguar ant eebyot herpar tners,lossonsuchguar ant eewi l
lbeborneby:
(A)Par t nershipf i
r m
(B)Al ltheot herpar tner s
(C)Par t nerswhogi vet heguar ant ee
(D)Par t nerwi thhi ghestpr of i
tshar i
ngr atio.
Answer :C
113.Guar anteegi v ent opar tner‘ A’ byt heot herpar t
ner s‘B&C’ means:
(A)I ncaseofl oss, ‘A’ wi l
lnotcont ributet owar dst hatloss.
(B)Incaseofi nsuf ficientpr ofits, ‘A’ willrecei veonl ythemi nimum guar anteeamount .
(C)I ncaseofl ossori nsuf ficientpr of i
ts,‘A’ willwi t
hdrawt hemi ni
mum guar anteeamount .
(D)Al loft heabov e.
Answer :C
114.P, QandRar epar tnersi naf irmi n3: 2: 1.Ri sguar ant eedthathewi l
lgetmi nimum of₹20,000ashi s
shar eofpr ofitever yy ear .Firm’ spr ofitwas₹90, 000.Par t
ner swillget:
(A)P₹40, 000; Q₹30, 000; R₹20, 000;
(B)P₹42, 500; Q₹27, 500; R₹20, 000;
(C)P₹45, 000; Q₹30, 000; R₹15, 000;
(D)P₹42, 000; Q₹28, 000; R₹20, 000;
Answer :D
115.A, YandZar epar tner sint her at i
oof5: 4: 3.Ahasgi v entoZaguar anteeofmi nimum ₹10,000pr of
it.
Fort hey earendi ng31stMar ch2019, firm’ spr ofiti
s₹28, 800.Jsshar einpr ofitwil
l be:
(A)₹9, 200
(B)₹9, 600
(C)₹7, 200
(D)₹12, 000
Answer :A
116.E, FandGshar epr ofitsint her atioof4: 3: 2.Gi sgivenaguar anteet hathi sshareofprofit
swi l
l not
bel esst han₹75, 000.Def iciencyi fany ,woul dbebor nebyEandFequal l
yFirm’ spr of
itwas₹2,70,000.As
shar eofpr ofitwill be:
(A)₹90, 000
(B)₹82, 500
(C)₹97, 500
(D)₹75, 000
Answer :B
117.X, Y, andZar epar tnersi nt her atioof6: 4: 1.Int hefirm, Ahasguar anteedZf orhismini
mum pr ofi
t
of₹15, 000.Fi rm’ sprof i
twas₹99, 000.I nthef ir
m pr ofi
tAsshar ewi llbe:
(A)₹30, 000
(B)₹15, 000
(C)₹48, 000
(D)₹45, 000
Answer :C
118.P, Q, andRar epar tnersin3: 2: 1.Ri sguar anteedt hathi sshar eofpr ofitwi l
lnotbel esst han₹70, 000.
Anydef i
ci encywi llbebor nebyPandQi nt her atioof2: 1.Firm’ sprofi
twas₹2, 40,000.Shar eofPwi l
lbe:
(A)₹1, 00,000
(B)₹1, 10,000
(C)₹1, 20,000
(D)₹1, 02,000
Answer :A
119.AYandZar epar tnersin5: 4: 1.Zi sguar anteedt hathisshar eofpr ofitwillnotbel esst han₹80, 000.
Anydef i
ci encywi llbebor nebyAandYi n3: 2.Fi r
m’ spr ofi
twas₹5, 60,000.Howmuchdef i
ciencywi llbe
bornebyY:
(A)₹2, 14,400
(B)₹14, 400
(C)₹2, 09,600
(D)₹9, 600
Answer :D
120.PandQar epar tnersshar i
ngpr of i
t sint her ati
oof1: 2.Rwasmanagerwhor ecei
v edt hesal aryof
₹10,000p. m.i naddi ti
ont ocommi ssionof10%onnetpr ofit
saf terchar gingsuchcommi ssi on.Tot al
remuner ationtoRamount edto₹1, 80,000.Pr ofi
tforthey earbef orechar gingsal aryandcommi ssionwas:
(A)₹7, 20,000
(B)₹6, 00,000
(C)₹7, 80,000
(D)₹6, 60,000
Answer :C
121.XandYar epar tners.Xdr awsaf ixedamountatt hebegi nningofev erymont h.Int
er estondr awingsi s
charged@8%p. a.Att heendoft hey eari nter estonX’ sdr awingsamount st o* ₹2,600.Dr awi ngsofA’ wer e:
(A)₹8, 000p. m.
(B)₹7, 000p. m.
(C)₹6, 000p. m.
(D)₹5, 000p. m.
Answer :D
122.AandBar epar tners.Bdr awsaf ixedamountatt heendofev erymont h.Interestondr awi ngsi s
charged@15%p. a.Att heendoft hey eari nt erestonB’ sdrawi ngsamount sto₹8, 250.Dr awi ngsofBwer e:
(A)₹12, 000p. m.
(B)₹10, 000p. m.
(C)₹9, 000p. m.
(D)₹8, 000p. m.
Answer :B
123.AandBar epar tnerswi t
hapr ofi
t-shar ingr atioof2: 1andcapi tal
sof₹3, 00,000and₹2, 00,
000
respect i
v ely.Theyar eal l
owed6%p. a.i nterestont heircapi t
alsandar echar ged10%p. a.i nterestont hei r
drawi ngs.Thei rdr awingsdur ingt hey earwer eA₹60, 000andB₹40, 000.B’ sshar eofnetpr of i
tasperpr ofit
andl ossappr opr i
ationaccountamount edt o₹40, 000.NetPr ofitofthef irm befor eanyappr opriati
onswas:
(A)₹1, 22,000
(B)₹1, 13,000
(C)₹1, 17,000
(D)₹1, 45,000
Answer :D
124.AandBar epartnersinafi
rm.Theyareent
it
ledt
ointer
estonthei
rcapit
alsbutt
henetpr
ofi
twasnot
suff
ici
entfort
hisi
nterest,
thenthenetpr
ofi
twil
lbedi
str
ibutedamongpartner
sin:(CPT,
Dec.2012)
(A)AgreedRati
o
(B)Profi
tShar
ingRatio
(C)Capit
alRat
io
(D)Equall
y
Answer:C
ChangeinProfi
tShari
ngRati
oamongt
heExi
sti
ngPar
tner
sCl
ass12
AccountancyMCQsPdf
Sel
ecttheBestAlt
ernate:
1.Sacri
ficingRatio:
(A)NewRat io–Ol dRat io
(B)OldRat io–NewRat io
(C)OldRat io–Gai ningRat io
(D)GainingRat i
o–Ol dRat io
Answer :B
2.Gaini
ngRat i
o:
(A)NewRat io–Sacr ifi
cingRat i
o
(B)OldRat io–Sacr ifi
cingRat i
o
(C)NewRat io–Ol dRat io
(D)OldRat io–NewRat io
Answer :C
3.AandBwer epar t
nersi naf i
rm shar
ingprofi
torl
ossequall
y.Witheffectfrom 1stApril
2019t heyagreed
tosharepr ofi
tsinther atioof4: 3.Duetochangeinprof
itshari
ngrati
o, A’sgainorsacri
ficewil
lbe:
(A)Gain 1/14
(B)Sacri
f i
ce 1/
14
(C)Gain 4/7
(D)Sacrifi
ce 3/7
Answer :A
4.AandBwer epar t
nersi naf i
rm shar
ingprofi
torl
ossequall
y.Witheffectfrom 1stApril
,2019they
agreedtoshar eprof i
tsint herati
oof4: 3.Duetochangeinprofi
tshari
ngr ati
o,B’sgainorsacri
ficewill
be:
(A)Gain 1/14
(B)Sacri
f i
ce 1/
14
(C)Gain 4/7
(D)Sacri
f i
ce 3/7
Answer :B
5.AandBwer epar t
nersi naf i
rm shar
ingprofi
torl
ossintherati
oof3: 5.Witheffectf
rom 1stApril
,2019,
theyagreedt oshar eprofitsorlossesequall
y.Duet
ochangei nprof
itshar i
ngrati
o, A’
sgainorsacrif
icewil
l
be:

Answer:B
6.AandBwerepar
tnersinafi
rm shari
ngprofi
tsandlossesintherati
oof2: 1.Wit
heffectfr
om 1st
Januar
y2019t
heyagreedtoshar
epr of
itsandlossesequal
ly
.Indiv
idualpar
tner’
sgainorsacri
fi
ceduet
o
changei
nther
ati
owi
l
lbe:

Answer
:B
7.AandBshar
eprofi
tsandlossesinther
ati
oof3:2.Wit
heffectf
rom 1st.Januar
y,2019,
theyagr
eedt
o
shar
eprof
it
sequal
l
y.Sacri
fi
cingrat
ioandGaini
ngRat
iowi
llbe:

Answer :C
8.AandBwer epartnersinafir
m sharingprofi
torlossintherat
ioof3: 1.Witheffectfrom Jan.1,2019
theyagr eedt oshareprofitorl
ossinther ati
oof2: 1.Duetochangei nprof
it
-l
ossshar ingr at
io,B’
sgai nor
sacrif
icewi llbe:
(A)Gai n 1/12
(B)Sacr i
f i
ce 1/
12
(C)Gai n 1/3
(D)Sacr i
f i
ce 1/
3
Answer :A
9.A, BandCwer epartnersshari
ngprof i
torlossintherat
ioof7: 3:2.From Jan.1,2019t heydecidedt o
sharepr ofitorlossintherati
oof8: 4: 3.Duet ochangeintheprofi
t-
lossshari
ngr ati
o,B’sgai norsacrif
ice
willbe:
(A)Gai n 1/60
(B)Sacr i
f i
ce 1/
60
(C)Gai n 2/60
(D)Sacr i
f i
ce 3/
60
Answer :A
10.AyandZar epartnersinafir
m shar i
ngprofit
sandlossesintherati
oof5: 3: 2.Thepar t
nersdecidet o
sharef utureprofit
sandl ossesintheratioof3:2:
1.Eachpartner
’sgainorsacri
fi
ceduet ochangei nthe
rati
owi llbe:

Answer:D
11.A,BandCwerepart
ner
sinafi
rm shari
ngprof
it
sandl ossesi
ntherati
oof3: 2:1.Thepart
nersdecide
toshar
efutur
epr
ofi
tsandl
ossesi
nther at
ioof2:
2:1.Eachpart
ner’
sgainorsacr
if
iceduetochangeinrati
o
wi
l
lbe:

Answer
:A

12.A,BandCwerepart
ner
sinafi
rm shari
ngprof
it
sandl ossesint
herati
oof4:3: 2.Thepar
tner
sdeci
de
toshar
efutur
epr
ofi
tsandl
ossesi
nther at
ioof2:
2:1.Eachpartner
’sgai
norsacr
if
iceduetochangei
nthe
rat
iowil
lbe:

Answer:
C
13.A,
BandCwer epartner
sinali
rm shar
ingprof
it
sin4:
3:2r
ati
o.Theydeci
dedt
oshar
efut
urepr
ofi
tsi
n
4:3:1rati
o.Sacr
if
ici
ngrat
ioandgai
ningrati
owil
lbe:

Answer:D
14.X,YandZwer
epartner
sshar
ingpr
ofit
sintherat
io2:
3:4wit
heffectf
rom 1stJanuar
y,2019they
agreedt
oshar
eprof
it
sinther
ati
o3:4:
5.Eachpart
ner’
sgainorsacr
ifi
ceduetochangeintherat
iowil
lbe:

Answer:A
15.X,YandZwerei
npart
nershi
pshari
ngprof
it
sintherat
io4:
3:1.Thepar
tnersagreedt
oshar
efut
ure
prof
it
sinther
ati
o5:4:3.Eachpar
tner
’sgai
norsacri
fi
ceduet
ochangei
nrati
owi l
lbe:
Answer:A
16.A,BandCar eequalpart
ner
sinthef
ir
m.Itisnowagreedthatt
heywi
l
lshar
ethef
utur
epr
ofi
tsi
nthe
rat
io5:
3:2.Sacr
if
ici
ngrati
oandgaini
ngr
atioofdi
ffer
entpar
tnerswi
ll
be:

Answer :C
17.Theexcessamountwhi cht hefirm cangetonselli
ngitsassetsov
erandabovethesaleablevalueofit
s
assetsiscal led:
(A)Surplus
(B)Superpr ofits
(C)Reser ve
(D)Goodwi l
l
Answer :D
18.Whi choft hef oll
owi ngisNOTt rueinrel
ati
ont ogoodwill
?
(A)Iti
sani ntangi bleasset
(B)Iti
sf i
ctitiousasset
(C)Ithasar eal i
sablev alue
(D)Noneoft heabov e
Answer :B
19.WhenGoodwi lli
snotpur chasedgoodwi l
laccountcan:
(A)Nev erber aisedi nthebooks
(B)Ber ai
sedi nt hebooks
(C)Bepar t
iallyraisedi nthebooks
(D)Ber aisedaspert heagr eementoft hepart
ners
Answer :A
20.TheGoodwi llofthef i
rmi sNOTaf f
ectedby: (
CPT; June2011)
(A)Locationoft hefirm
(B)Reput ationoff ir
m
(C)Bettercust omerser vi
ce
(D)Noneoft heabov e
Answer :D
21.Capi t
al empl oyedbyapar t
nershipfir
mis₹5,00,000.It
saverageprof
iti
s₹60,
000.Thenormal rateof
ret
urninsi mi lart ypeofbusi nessis10%.Whati st heamountofsuperprofi
ts?(
C.S.Foundati
on,Dec.,2012)
(A)₹50,000
(B)₹10,000
(C)₹6,000
(D)₹56, 000
Answer :B
22.Wei ght edav eragemet hodofcal cul atinggoodwi l
li
susedwhen: (CPT; June2009)
(A)Pr of it
sar enotequal
(B)Pr of it
sshowat rend
(C)Pr of it
sar ef l
uct uat ing
(D)Noneoft heabov e
Answer :B
23.Thepr ofit
sear nedbyabusi nessov ert hel ast5y earsar easf ol
lows: ₹12,000; ₹13,000; ₹14,000;
₹18,000and₹2, 000( loss) .Basedon2y ear spur chaseoft hel ast5y earspr of
its,v alueofGoodwi llwillbe:
(A)₹23, 600
(B)₹22, 000
(C)₹1, 10, 000
(D)₹1, 18, 000
Answer :B
24.Theav eragepr of itofabusi nessov ert hel astf i
vey ear
samount edt o₹60, 000.Thenor mal commer cial
yiel
doncapi tal i
nv est edi nsuchabusi nessi sdeemedt obe10%p. a.Thenetcapi tali
nv estedi nthe
businessi s₹5, 00,000.Amountofgoodwi ll, i
fitisbasedon3y ear spur chaseofl ast5y earssuper profit
s
wi l
lbe:
(A)₹1, 00. 000
(B)₹1, 80, 000
(C)₹30. 000
(D)₹1, 50, 000
Answer :C
25.Undert hecapi tal isationmet hod, thef or mul aforcalculatingt hegoodwi lli
s: (CPT; Dec.2011)
(A)Superpr ofi
tsmul tipliedbyt her ateofr et urn
(B)Av er agepr of i
tsmul tipli
edbyt herat eofr eturn
(C)Superpr ofi
tsdi v idedbyt her at eofr et ur n
(D)Av er agepr of i
tsdi videdbyt her ateofr et urn
Answer :C
26.Thenetasset sofaf irmi ncludi ngf ictitiousasset sof₹5, 000ar e₹85, 000.Thenetl iabil
it
iesoft hef i
rm
are₹30, 000.Thenor mal rateofr eturni s10%andt heav er
agepr ofi
tsoft hef i
rm ar e₹8, 000.Cal culatethe
goodwi llaspercapi talisationofsuperpr of its.
(A)₹20, 000
(B)₹30, 000
(C)₹25, 000
(D)Noneoft hese
Answer :B
27.Tot al Capi t
al empl oyedi nt hef i
rmi s₹8, 00,000, r
easonabl er ateofr et urnis15%andPr of i
tfort hey ear
i
s₹12, 00, 000.Thev alueofgoodwi ll
oft hef irm aspercapi tali
zat ionmet hodwoul dbe: (C.
S.Foundat ion,
June2013)
(A)₹82, 00, 000
(B)₹12, 00,000
(C)₹72, 00, 000
(D)₹42, 00, 000
Answer :C
28.Theav eragecapi tal empl oy edofaf irmi s? 4,00,000andt henor mal rat eofr etur nis15%.Theav erage
profitoft hef ir
mi s? 80, 000perannum.I ft he.r emuner ati
onoft hepar tner sisest imat edt obe?10, 000per
annum, thenont hebasi soft woy earspur chaseofsuper -
prof it
,thev al
ueoft heGoodwi llwill
be:
(A)₹10, 000
(B)₹20, 000
(C)₹60, 000
(D)₹80, 000
Answer :B
29.Af i
r m ear ns₹1, 10, 000.Thenor mal rateofr etur nis10%.Theasset softhef i
rm amount edt o
₹11,00, 000andl iabil
iti
est o₹1, 00, 000.Val ueofgoodwi l
lbycapi t
alisati
onofAv erageAct ual Profit
swi l
l be:
(C.S.Foundat ionDec. , 2012)
(A)₹2, 00,000
(B)₹10, 000
(C)₹5, 000
(D)₹1, 00,000
Answer :D
30.Capi t
al inv estedinaf irmi s₹5, 00, 000.Nor mal r
ateofr et
ur nis10%.Av erageprofitsoft hef i
rm are
₹64,000( afteranabnor mal l
ossof? 4, 000) .Valueofgoodwi llatf ourtimest hesuperpr ofitswi llbe:
(A)₹72, 000
(B)₹40, 000
(C)₹2, 40,000
(D)₹1, 80,000
Answer :A
31.PandQwer epartner sshar ingpr of i
tsandl ossesi nt heratioof3: 2.Theydeci dedt hatwi thef f
ectfrom
1stJanuar y,2019t heywoul dshar epr ofi
tsandl ossesi nther atioof5: 3.Goodwi l
lisvaluedat?1, 28,000.
Inadjust mentent r
y:
(A)Cr.Pby₹3, 200;Dr .Qby₹3, 200
(B)Cr.Pby₹37, 000;Dr .Qby₹37, 000
(C)Dr.Pby₹37, 000;Cr .Qby₹37, 000
(D)Dr .Pby₹3, 200Cr .Qby₹3, 200
Answer :D
32.A, BandCar epartner sshar ingpr ofit
si nt her at i
oof4: 3: 2deci dedt oshar eprofitsequal l
y.Goodwi l
l
ofthef i
rmi sv aluedat?10, 800.I nadj ustingent ryf orgoodwi ll:
(A)A’sCapi tal A/cCr .by₹4, 800; B’sCapi tal A/cCr .by₹3, 600; C’sCapi talA/ cCr.by₹2, 400.
(B)A’sCapi tal A/cCr .by₹3, 600; B’sCapi tal A/cCr .by₹3, 600; C’sCapi talA/ cCr.by₹3, 600.
(C)A’sCapi tal A/cDr .by₹1, 200; C’sCapi tal A/cCr .by₹1, 200;
(D)A’sCapi tal A/cCr .by₹1, 200; C’sCapi tal A/cDr .by₹1, 200
Answer :D
33.A, BandCwer epar tnersshar ingpr ofi
tsandl ossesi nt her atioof7: 3: 2.From 1stJanuar y,2019t hey
decidedt oshar eprofitsandl ossesi nt her atioof8: 4:3.Goodwi llis₹1,20,000.InAdj ustmentent ryfor
goodwi ll
:
(A)Cr.Aby₹6, 000;Dr .Bby? 2,000; Dr.Cby₹4, 000
(B)Dr.Aby₹6, 000;Cr .Bby? 2,000; Cr .Cby₹4000
(C)Cr.Aby₹6, 000;Dr .Bby? 4,000; Dr.Cby₹2, 000
(D)Dr .Aby₹6, 000;Cr .Bby? 4,000; Cr.Cby₹2, 000
Answer :A
34.P, QandRwer epar tnersi naf ir
m shar ingpr of isin5: 3: 2r ati
o.Theydeci dedt oshar et hef uture
profi
tsi n2: 3: 5.Fort hispur poset hegoodwi lloft hef ir
m wasv aluedat₹1, 20,000.Inadj ustmentent ryfor
thetreat mentofgoodwi llduet ochangei nt hepr ofitshar i
ngr atio:
(A)Cr.Pby₹24, 000;Dr .Rby₹24, 000
(B)Cr.Pby₹60, 000;Dr .Rby₹60, 000
(C)Cr.Pby₹36, 000;Dr .Rby₹36, 000
(D)Dr .Pby₹36, 000;Cr .Rby₹36, 000
Answer :C
35.A, BandCar epartner si naf i
rm shar ingpr of itsint her at
ioof3: 4: 1.Theydeci dedt oshar epr ofi
ts
equallyw. e.f.1stApr il,2019.Ont hatdat et hePr ofitandLossAccountshowedt hecredi tbal anceof
? 96,
000.I nst eadofcl osi ngt hePr ofitandLossAccount , i
twasdeci dedtor ecordanadj ustmentent r
y
refl
ectingt hechangei npr ofitshar i
ngr ati
o.I nthej ournal entry:
(A)Dr.Aby₹4, 000;Dr .Bby₹16, 000; Cr .Cby₹20, 000
(B)Cr.Aby₹4, 000;Cr .Bby₹16, 000; Dr .Cby₹20, 000
(C)Cr .Aby₹16, 000; Cr .Bby₹4, 000; Dr .Cby₹20, 000
(D)Dr .Aby₹16, 000; Dr .Bby₹4, 000; Cr .Cby₹20, 000
Answer :B
36.A, BandCar epar tnershar i
ngpr ofitsi nt her atioof1: 2: 3.On1- 4- 2019t heydeci dedt osharet he
profitsequal ly.Ont hedat et her ewasacr editbal anceof?1, 20,000i nt heirPr ofitandLossAccountanda
balanceof?1, 80, 000i nGener al Reser v eAccount .I nst eadofcl osingt heGener al Reser veAccountand
Prof i
tandLossAccount ,itisdeci dedt or ecor danadj ustmentent r
yf ort hesame.I nt henecessar y
adjust mentent r yt ogi v eef fectt ot heabov ear r
angement :
(A)Dr .Aby₹50, 000; Cr .Bby₹50, 000
(B)Cr .Aby₹50, 000; Dr .Bby₹50, 000
(C)Dr .Aby₹50, 000; Cr .Cby₹50, 000
(D)Cr .Aby₹50, 000; Dr .Cby₹50, 000
Answer :C
37.X, YandZar epar tner si naf irm shar ingpr ofitsi nt her ati
o4: 3: 2.Thei rBal anceSheetasat31- 3-2019
showedadebi tbal anceofPr ofit&LossA/ c₹1, 80, 000.Fr om 1- 4-2019t heywi llshar epr of
it
sequal ly.Inthe
necessar yjour nal ent r
yt ogi veef fecttot heabov ear r angementwhenAYandZdeci dednott ocl oset he
Prof i
t&LossAccount :
(A)Dr .Xby₹20, 000; Cr .Zby₹20, 000
(B)Cr .Xby₹20, 000; Dr .Zby₹20, 000
(C)Dr .Xby₹40, 000; Cr .Zby₹40, 000
(D)Cr .Xby₹40, 000; Dr .Zby₹40, 000
Answer :A
38.Ar anandVar anar epar tner sshar i
ngpr ofit
si nt her atioof4: 3.Thei rBalanceSheetshowedabal ance
of?56, 000i nt heGener al Reser veAccountandadebi tbal anceof?14, 000i nPr ofitandLossAccount .
Theynowdeci dedt oshar et hef ut urepr ofitsequal l
y .Inst eadofcl osingt heGener al ReserveAccountand
Prof i
tandLossAccount ,itisdeci dedt opassanadj ust mentent ryfort hesame.I nadj ustmentent ry:
(A)Dr .Ar anby₹3, 000; Cr.Var anby₹3, 000
(B)Dr .Ar anby₹5, 000; Cr.Var anby₹5, 000
(C)Cr .Ar anby₹5, 000; Dr.Var anby₹5, 000
(D)Cr .Ar anby₹3, 000; Dr.Var anby₹3, 000
Answer :D
39.X, YandZar epar tner si naf irm shar ingpr ofitsi nt her ati
oof3: 2: 1.Theydeci dedt osharefut ure
profitsequal ly.ThePr of i
tandLossAccountshowedaCr editbalanceof₹60, 000andaGener alReser veof
₹30,000.I ft
hesear enott obeshowni nbal ancesheet ,i
nt hej ournalent ry:
(A)Cr .Xby₹15, 000: Dr .Zby₹15, 000
(B)Dr .Xby₹15, 000; Cr .Zby₹15, 000
(C)Cr .Xby₹45, 000; Cr .Yby₹30, 000; Cr .Zby₹15, 000
(D)Cr .Xby₹30, 000; Cr .Yby₹30, 000; Cr .Zby₹30, 000
Answer :C
40.XYandZar epar tnersshar ingpr of itsandl ossesi nt her atio5: 3: 2.Theydeci det osharethef uture
profitsint her at i
o3: 2: 1.Wor kmencompensat ionr eser veappear i
ngi nt hebal ancesheetont hedat eif
noi nformat ioni sav ailablef ort hesamewi llbe:
(A)Di stri
but edt ot hepar tner si nol dpr of i
tshar ingr atio
(B)Di stri
but edt ot hepar tner si nnewpr of i
tshar ingr at io
(C)Di stri
but edt ot hepar tner si ncapi tal ratio
(D)Car riedf orwar dt onewbal ancesheetwi t
houtanyadj ustment
Answer :A
41.Anychangei nt her elat i
onshi pofexi stingpar tner swhi chr esultsinanendoft heexi sti
ngagr eement
andenf orcesmaki ngofanewagr eementi scal l
ed( C.B.S. E.Sampl ePaper ,
2015)
(A)Rev aluationofpar tner ship.
(B)Reconst itutionofpar tner shi p.
(C)Real i
zationofpar tner ship.
(D)Noneoft heabov e.
Answer
:B

MCQQuesti
onsforCl
ass12Account
ancyChapter3Reconst
it
uti
onof
Par
tner
shi
pFir
m:Admissi
onofaPartnerwi
thAnswers

Reconst
it
uti
onofPar
tner
shi
pFir
m:Admi
ssi
onofaPar
tnerCl
ass12
MCQsQuest i
onswi
thAnswer
s
1.
Goodwi l
lisnothi
ngmorethanpr
obabi
l
ityt
hatt
heol
dcust
omerwi
l
lresor
ttot
heol
dpl
ace.Thi
sdef
ini
ti
on
ofgoodwi l
l wasgi
venby
:
(a)SpicerandPegler
(b)ICAI
(c)LordElton
(d)AICPA

Answer

2.
Goodwilli
stobecalcul
atedatoneandhal
fyear
’pur
chaseofaver
ageprof
itofl
ast5year
s.Thefi
rm earnedpr
ofi
ts
duri
ng3y earsas₹20,
000₹18,000and₹9,
000andsuff
eredl
ossesof₹2,
000and₹5,000i
nlast2years.Theamount
ofgoodwillwil
lbe:
(a)₹12,
000
(b)₹10,
000
(c)₹15,
000
(d)Noneoft hese

Answer
:(a)₹12,
000

3.
Whent her
eisnoGoodwi
l
lAccounti
nthebooksandgoodwi
l
lisr
aised,
…………….
accountwi
l
lbedebi
ted:
(a)Part
ner’
sCapi
tal
(b)Goodwill
(c)Cash
(d)Reserv
e

Answer:(
b)Goodwill
4.
Theamountofgoodwi l
li
spaidbynewpar
tner:
(a)f
orthepaymentofcapit
al
(b)f
orshari
ngtheprofi
t
(c)f
orpurchaseofasset
s
(d)Noneofthese
Answer:(
b)forshari
ngt heprofi
t
5.
Attheti
meofadmi ssionofanewpar t
ner
sgener
alr
eser
veappear
ingi
ntheol
dBal
anceSheeti
str
ansf
err
edt
o:
(a)Al
lPart
ner’
sCapitalAccount s
(b)NewPartner’
sCapitalAccount
(c)Ol
dPartners’
.Capit
al Accounts
(
d)Noneoft
hese
Answer :(
c)OldPar t
ners’
.Capi
tal
Accounts
6.
Profi
torLossonRev al
uati
onisborneby
:
(a)OldPartners
(b)NewPar tners
(c)Al
l Part
ners
(d)OnlyTwoPar tners
Answer:(a)OldPart
ners
7.
Shareofgoodwi l
lbr
oughtbynewpar
tneri
ncasei
sshar
edbyol
dpar
tner
sin:
(a)Sacri
fi
cingRati
o
(b)OldRati
o
(c)NewRat io
(d)EqualRatio
Answer:(
a)Sacrif
ici
ngRat
io
8.
A,BandCarethreepart
ner
sshar
ingpr
ofi
tsandl
ossesi
nther
ati
oof4:
3:2.Di
sadmi
tt
edf
or1/
10shar
e,t
henewr
ati
o
will
be:
(a)10:7:7:4
(b)5:3:2:1
(c)4:3:2:1
(d)Noneofthese
Answer:
(c)4:3:2: 1
9.
AandBar epar
tner
sinafi
rm shar
ingprof
it
sinther
ati
oof3:
2.Theyadmi
tCasanewpar
tnerf
or1/
3rdshar
eint
he
prof
it
softhefi
rm.Thenewprofi
tshar
ingrat
ioofA,
BandCwoul dbe:
(a)3:2:1
(b)3:2:2
(c)3:2:3
(d)6:4:5
Answer :
(d)6: 4: 5
10.
XandYar epartnersshar
ingpr
ofi
tsi
ntherati
oof1:
1.TheyadmitZf
or1/
5thshar
ewhocont
ri
but
ed₹25,
000f
orhi
s
shareofgoodwi ll
.Thetot
alval
ueofgoodwil
loft
hefi
rm wi
llbe:
(a)₹2,
50,000
(b)₹50,000
(c)₹1,
00,000
(d)₹1,25,000
Answer
:(c)₹1,
00,
000

11.
A,BandCar epartner
sinaf ir
m.IfDisadmitt
edasanewpar
tner
,then:
(a)Ol
dfir
mi sdissol
ved
(b)Ol
dfir
m andol dpart
nershipi
sdissol
ved
(c)Ol
dPartnershi
pisreconsti
tut
ed
(d)Noneofthese

Answer
:(c)Ol
dPar
tner
shi
pisr
econst
it
uted
12.
I
nwhichratio,
thecashbr
oughti
nforgoodwi
l
lbyt
henewpar
tneri
sshar
edbyt
heexi
sti
ngpar
tner
s:
(
a)Prof
itshari
ngrati
o
(
b)Capi
talrati
o
(
c)Sacr
ifi
cingrat
io
(
d)Noneoft hese
Answer: (
c)Sacri
fi
cingratio
13.
Sacri
fi
cingrati
oisascer t
ainedatt
het
imeof
:
(a)Deathofapar t
ner
(b)Reti
rementofapar tner
(c)Admissionofapar t
ner
(d)Noneoft hese
Answer
:(c)Admi
ssi
onofapar
tner

14.
I
fatt het imeofadmi ssionofnewpar
tner
,Pr
ofi
tandLossAccountbal
anceappear
sint
hebooks,
itwi
l
lthe
transferr
edt o:
(a)Profit&LossAppr opri
at i
onA/
c
(b)AllPar tners’Capit
al A/cs
(c)OldPar tners’
CapitalA/ cs
(d)Rev aluat i
onA/ c

Answer
:(c)Ol
dPar
tner
s’Capi
tal
A/cs

15.
Stat
et he‘t
rue’
statement:
(a)Profi
t&LossAdj ust
mentA/ cispreparedforrev
aluatedofasset
sandli
abi
li
ti
esontheadmissi
onofapar
tner
(b)Thenewpar tnerisl
iableforthepastlossesofthefir
m
(c)I
ncaset henewpar tnerisunabletobringincashforgoodwill
,Goodwi
l
lAccountmayberai
sedint
hefi
rm’s
booksasperAS- 26
(d)Whenapar tnerisadmitted,t
hereisdissolut
ionoffir
m

Answer:(a)Pr
ofit&LossAdjustmentA/cisprepar
edf orrev
aluat
edofasset
sandl
i
abi
l
iti
esont
headmi
ssi
onofa
part
ner
16.
Excessofthecredi
tsideov
ert hedebi
tsideofRevaluati
onaccounti
s:
(a)Prof
it
(b)Loss
(c)Gain
(d)Expense
Answer : (
a)Pr ofit
17.
Balancesheetpr epar edaf
ternewpar
tner
shi
pagr
eement
,asset
sandl
i
abi
l
iti
esar
erecor
dedat
:
(a)Original Val
ue
(b)Rev aluedFi gure
(c)AtReal isableVal ue
(d)Eit
herof( a)or( b)
Answer:
(b)Reval
uedFigur
e
18.
Asset
sandLiabil
i
tiesar
eshownatt
hei
rrev
aluedv
aluesi
n:
(
a)NewBal anceSheet
(
b)Reval
uationA/c
(
c)Al
lPartner’
sCapit
alA/
c’s
(
d)Reali
sati
onA/c
Answer:(
a)NewBalanceSheet
19.
Whichofthefol
lowi
ngasset
siscompul
sor
il
yrev
aluedatt
het
imeofadmi
ssi
onofanewpar
tner:
(a)st
ock
(b)Fi
xedAssets
(c)I
nvest
ment
(d)Goodwil
l
Answer:(
d)Goodwi ll
20.
AandBar epartners.Ci
sadmi
tt
edwi
th1/
5shar
e.Cbr
ings71,
20,
000ashi
sshar
etowar
dscapi
tal
.Thet
otal
net
worthoft
hef i
rmi s:
(a)₹1,
00,000
(b)₹4,
00,000
(c)₹1,
20,
000
(d)₹6,
00,000
Answer:(
d)₹6,00,
000
21.
AandBshar eprofi
tsandl
ossesi
nther
ati
oof3:
4.Cwasadmi
tt
edf
or1/
5thshar
e.Newpr
ofi
tshar
ingr
ati
owi
l
lbe:
(a)3:4:1
(b)12:16:7
(c)16:12:7
(d)Noneofthese
Answer: (
b)12: 16: 7
22.
Theopeni ngbal
anceofPart
ner
’sCapi
tal
Accounti
scr
edi
tedwi
th:
(a)I
nterestonCapi t
al
(b)I
nterestonDr awings
(c)Drawings
(d)Shareinloss
Answer:(a)I
nter
estonCapit
al
23.
Shareofgoodwil
lbroughti
ncashbyt
henewpar
tneri
scal
l
ed:
(a)Asset
s
(b)Prof
it
(c)Premium
(d)Noneofthese
Answer :(
c)Premi um
24.
I
ft hei
ncomi ngpar tnerbringstheamountofgoodwi
ll
incashandal
soabal
anceexi
stsi
nGoodwi
l
lA/
c,t
hent
he
Goodwi l
lA/ciswr i
tt
enof famongt heol
dpartner
s:
(a)Innewpr ofit
-sharingratio
(b)Inoldprofi
t-sharingratio
(c)Insacri
fi
cingr ati
o
(d)Ingaini
ngr ati
o
Answer
:(b)I
nol
dpr
ofi
t-
shar
ingr
ati
o
25.
AandBshar epr
ofi
tsandl
ossesi
nther
ati
oof3:
1.Ci
sadmi
tt
edi
ntopar
tner
shi
pfor1/
4shar
e.Thesacr
if
ici
ngr
ati
o
ofAandBi s:
(a)Equal
(b)3:1
(c)2:1
(d)3:2
Answer:(b)3:1
26.
AandBar epart
nersshar
ingpr
ofi
tsi
nther
ati
oof3:
1.Theyadmi
tCf
or1/
4shar
einf
utur
epr
ofi
ts.Thenewpr
ofi
t
shari
ngratiowil
lbe:
(a)A916,B316,C416
(b)A816,B416,C416
(c)A1010,B216,C416
(d)A816,B916,C1016

Answer :
(a)A916,B316, C416
27.
FormulaofSacrif
ici
ngr ati
ois:
(a)NewRat i
o–Ol dRat io
(b)OldRati
o–NewRat io
(c)GainRati
o–Sacr i
ficingRati
o
(d)NewRat i
o–Sacr if
icingRati
o.
Answer:(b)OldRati
o–NewRat i
o
28.
Theaccumul at
edprofi
tsandr
eserv
esar
etr
ansf
err
edt
o:
(a)Real
isati
onA/c
(b)Part
ner’
sCapitalA/
cs
(c)BankA/c
(d)Savi
ngsA/ c
Answer: (
b)Partner
’sCapit
alA/cs
29.
A,BandCar eequalpart
ners.Disadmitt
edt
ot hef
ir
mf ornon-
ourthshar
e.Dbr
ings₹20,
000ascapi
tal
and₹5,
000
beinghalfofthepremium f
orgoodwil
l.Thev
alueofgoodwil
lofthefi
rmis:
(a)₹10,000
(b)₹40,000
(c)₹30,000
(d)Noneoft hese
Answer:(b)₹40,000
30.
Ont headmi ssi
onofanewpar t
ner,
incr
easei
nthev
alueofasset
sisdebi
tedt
owhi
chaccount?
(a)Reval
uationAccount
(b)AssetsAccount
(c)OldPartners’Capi
tal
Account
s
(d)Noneoft hese
Answer:
(b)Asset
sAccount
31.
Zisadmitt
edinafi
rmfora1/4shar
eint
hepr
ofi
tforwhi
chhebr
ings730,
000f
orgoodwi
l
l.I
twi
l
lbet
akenawayby
theol
dpartner
sXandYin:
(
a)Oldprofi
t-
shari
ngrati
o
(
b)Newpr ofi
t-
shari
ngrati
o
(
c)Sacr
if
icingrat
io
(
d)Capi
talrati
o
Answer:(c)Sacrifi
cingrat
io
32.
Ont headmi ssi
onofanewpar t
ner,
thedecr
easei
nthev
alueofasset
sisdebi
tedt
o:
(a)Reval
uationAccount
(b)AssetsAccount
(c)OldPartners’Capit
alAccount
s
(d)Noneoft hese
Answer:(a)Revaluati
onAccount
33.
Whent henewpar tnerpay
sforgoodwi
l
lincash,
theamountshoul
dbedebi
tedi
nthef
ir
m’sbookt
o:
(a)Goodwill
Account
(b)CashAccount
(c)Capit
alAccountofnewpar t
ner
(d)Noneoft hese
Answer:(b)CashAccount
34.
ThebalanceofRev al
uati
onAccountorPr
ofi
t&LossAdj
ust
mentAccounti
str
ansf
err
edt
oOl
dPar
tner
s’Capi
tal
Accountsintheir:
(a)Oldprofi
t-shari
ngrati
o
(b)Newpr ofi
t-shari
ngrati
o
(c)Equalrati
o
(d)Capit
al r
atio
Answer:(
a)Oldprof
it-
shar
ingrati
o
35.
XandYshar epr
ofit
sintherati
oof3:2Zwasadmi
tt
edasapar
tnerwhoget
s1/
5shar
e.Zacqui
res3/
20f
rom Xand
1/20fr
om Y.Thenewpr of
itshari
ngr
ati
owi
l
lbe:
(a)9:7:4
(b)8:8:4
(c)6:10:4
(d)10:6:4
Answer: (
a)9: 7: 4
36.
Theopeni ngbalanceofPar
tner
’sCapi
tal
Accounti
scr
edi
tedwi
th:
(a)I
nterestonCapi t
al
(b)I
nterestonDr awings
(c)Drawings
(d)Shareinloss
Answer :(a)Inter
estonCapital
37.
Att hetimeofadmi ssi
onofanewpar t
ner,Undi
stri
but
edPr
ofi
tsappear
ingi
ntheBal
anceSheetoft
heol
dfi
rmi
s
transferr
edt otheCapit
alAccountof :
(a)Oldpar t
nersisoldprofi
t-
shar i
ngrati
o
(b)Oldpar tnersi
nnewpr ofi
t-shari
ngrati
o
(c)Allthepar t
nersint
henewpr ofi
t-
shari
ngr at
io
(d)Noneoft hese
Answer:(a)Ol dpart
nersisoldpr
ofi
t-
shar
ingrat
io
38.
Zisadmit t
edi nafirmforal/
4sharei
ntheprofi
tforwhi
chhebr
ings730,
000f
orgoodwi
l
l.I
twi
l
lbet
akenawayby
theoldpartnersXandYi n:
(a)Oldprofi
t-shari
ngrati
o
(b)Newpr ofi
t-shari
ngrati
o
(c)Sacr
if
icingr at
io
(d)Capi
talratio
Answer:( c)Sacri
fi
cingrati
o
39.
GeneralReser veatthetimeofadmi ssi
onofanewpar
tneri
str
ansf
err
edt
o:
(a)RevaluationAccount
(b)OldPar tner
’sCapit
al Account
(c)Prof
itandLossAdj ustmentAccount
(d)Reali
sat i
onAccount
Answer:(b)OldPartner’
sCapit
alAccount
40.
Changeinprof i
t-
shari
ngrati
oofexist
ingpar
tner
sresul
tsi
n:
(a)Reval
uati
onofFi rm
(b)Reconsti
tuti
onsofFirm
(c)Di
ssoluti
onofFirm
(d)Noneoft hese
Answer:(b)Reconsti
tut
ionsofFir
m
41.
X,YandZar epartnersi
naf irm,t
heydiv
idedpr
ofi
tandl
ossi
nther
ati
oof4:
3:1.Theydeci
dedt
oshar
epr
ofi
tInt
he
rat
io5:
4:3.X’sandY’ssacrif
icesare:
(
a)224:
  124
(
b)124:
  324
(
c)224:
  324
(
d)Noneofthese

Answer
:(a)
 224:
124
42.
Onr econsti
tut
ionofapartnershi
pfir
m,recordi
ngofanunr
ecor
dedl
i
abi
l
itywi
lresul
tin:
(a)Gaintotheexist
ingpartners
(b)Losst otheexi
sti
ngpartners
(c)Neithergai
nnorlosstot heexi
sti
ngpartner
s
(d)Noneoft hese
Answer :
(b)Losstot heexi
sti
ngpar
tners
43.
I
ncreaseInthev al
ueofassetsonreconsti
tut
ionoft
hepar
tner
shi
pfi
rmr
esul
tsi
nto:
(a)Gaintotheexist
ingpart
ners
(b)Losstotheexisti
ngpartner
s
(c)Neit
hergainnorlosstotheexi
sti
ngpartners
(d)Noneoft hese
Answer:(a)Gaintotheexi
sti
ngpart
ners
44.
ThebalanceofRev al
uati
onAccounti
stransf
err
edt
ool
dPar
tner
’sCapi
tal
Account
sint
hei
r:
(a)Ol
dPr ofi
t-
shari
ngRatio
(b)NewPr ofi
t-
shari
ngRatio
(
c)Equal
Rat
io
(
d)Noneoft
hese
Answer:(
a)OldProfit
-shar
ingRat
io
45.
XandYshar eprof
itsintherat
io2:3.I
nfut
uret
heyhav
edeci
dedt
oshar
epr
ofi
tsi
nequal
rat
io.Whi
chpar
tnerwi
l
l
sacri
fi
cei
nwhi chrati
o?
(a)Xsacr
ifi
ce1/10
(b)Ysacr
ifi
ce1/5
(c)Ysacr
if
ice1/10
(d)Noneofthese
Answer :(c)Ysacr i
fi
ce1/ 10
46.
Changei nt hepartner
shipagreementr
esul
tsi
n:
(a)Reconst itut
ionofFir
m
(b)DissolutionofFirm
(c)Amal gamat ionofFir
m
(d)Noneoft hese
Answer:(a)Reconst i
tuti
onofFi rm
47.
Changeint hepartnershi
pagr eement
:
(a)Changest herelat
ionshipamongthepart
ner
s
(b)Resul
tsi nendofpar tnershi
pbusi
ness
(c)Di
ssolvest hepart
nershipf i
rm
(d)Noneoft hese
Answer:(a)Changestherelat
ionshi
pamongt
hepartner
s
48.
Excessofcredi
tsideoverthedebitsi
dei
nReval
uat
ionAccounti
s:
(a)Prof
it
(b)Loss
(c)Recei
pt
(d)Expense
Answer:(
a)Profit
49.
A,BandCar epar t
nersi
naf ir
m, i
fDisadmit
tedasanewpar
tner
:
(a)Ol
dfir
mi sdissolv
ed
(b)Ol
dfir
m andol dpart
nershiparedi
ssol
ved
(c)Ol
dpartner
shipisreconsti
tut
ed
(d)Noneofthese
Answer:(c)Ol
dpartnershipi
sr econst
ituted
50.
Recordi
ngofanunrecor dedassetont her econsti
tut
ionofapar
tner
shi
pfi
rm wi
l
lbe:
(a)Againtotheexi
stingpartners
(b)Alosstotheexi
stingpart
ner s
(c)Neit
heragainnoral osst
ot heexistingpartners
(d)Noneofthese
Answer :(
a)Againtotheexi
sti
ngpart
ner
s
51.
Revaluati
onAccountorProf
it&LossAdj
ust
mentAccounti
sa:
(a)Personal
Account
(
b)Real
Account
(
c)Nominal
Account
(
d)Noneofthese
Answer:(
c)Nomi
nalAccount
52.
A,B,CandDarepart
nersshar
ingt
hei
rpr
ofi
tsandl
ossesequal
l
y.Theychanget
hei
rpr
ofi
tshar
ingr
ati
oto2:
2:1:
1.
Howmuchwi l
lCsacri
fi
ce?
(a)1/
6
(b)1/
12
(c)1/
24
(d)Noneoft
hese
Answer :
(d)Noneofthese
53.
Sacri
fi
cingRati
o:
(a)NewRat i
o–OldRat i
o
(b)OldRati
o–NewRat i
o
(c)Gaini
ngRati
o–Ol dRati
o
(d)OldRati
o–GainingRatio
Answer:
(b)OldRati
o–NewRat i
o
54.
Gaini
ngRati
o:
(a)NewRati
o–Ol dRatio
(b)Ol
dRati
o–Sacr i
fi
cingRati
o
(c)NewRati
o–Sacr i
fi
cingRat
io
(d)Ol
dRati
o–NewRat io
Answer:(a)NewRat io–OldRati
o
55.
XandYshar eprof
itandlossi
n3:2.Fr
om 1stJanuar
y,2017t
heyagr
eedt
oshar
epr
ofi
tequal
l
y.Thei
rsacr
if
iceor
gainwil
lbe:
(a)Sacri
fi
cebyX: 1/10
(b)Sacri
fi
cesbyY: 1/10
(c)Both(a)and(b)
(d)Noneoft hese
Answer:(
c)Both(a)and( b)
56.
Attheti
meofadmi ssionofanewpar t
ner
,Gener
alReser
veaappear
ingi
ntheol
dBal
ancesSheeti
str
ansf
err
edt
o:
(a)Al
lPart
ner’
sCapitalAccounts.
(b)NewPartners’
CapitalAccounts
(c)Ol
dPartner’
sCapitalAccounts
(d)Noneofthese
Answer:(c)OldPartner’
sCapi
talAccount
s
57.
Changeinprof i
t-
shari
ngrat
ioofexist
ingpar
tner
sresul
tsi
n:
(a)Reval
uati
onofFi rm
(b)Reconsti
tuti
onofFirm
(c)Di
ssoluti
onofFirm
(d)Noneoft hese
Answer
:(b)Reconst
it
uti
onofFi
rm
58.
General
l
ytheinterestoncapi
tal
isconsi
der
edas:
(
a)Anappr opr
iati
onofprofi
t
(b)AnAsset
(
c)AnExpense
(d)Noneofthese
Answer :
(a)Anappr opri
ati
onofprofi
t
59.
I
ncreaseinthev al
ueofasset sonreconsti
tut
ionofthepar
tner
shi
pfi
rmr
esul
tsi
nto:
(a)Gaintotheexist
ingpartners
(b)Losstotheexistingpart
ners
(c)Neit
heragai nnoralosstotheexisti
ngpar t
ner
s
(d)Noneoft hese
Answer :
(a)Gaintot heexi
sti
ngpartner
s
60.
Foll
owingar ethefactor
saffecti
nggoodwi
l
lexcept
:
(a)Natureofbusiness
(b)Eff
ici
encyofManagement
(c)TechnicalKnowledge
(d)Locati
onoft heCustomer s
Answer :(
c)Techni
calKnowledge
61.
Thepr of
itofthel
astthr
eeyearsare₹42,
000,
₹39,
000and₹45,
000.Val
ueofgoodwi
l
latt
woy
ear
spur
chasesoft
he
averagepr of
it
swil
lbe:
(a)₹42,000
(b)₹84,000
(c)₹1,26,000
(d)₹36,000
Answer:(b)₹84,000
62.
Underaveragepr of
itbasisgoodwil
li
scalcul
atedby:
(a)No.ofyears’purchasedxAv er
ageprofi
t
(b)No.ofyears’purchasedxSuperprofi
t
(c)SuperProfi
t-rExpectedRateofRetur
n
(d)Noneoft hese
Answer:(a)No.ofyear
s’pur
chasedxAv
eragepr
ofi
t
63.
Goodwilli
s:
(a)Tangi
bleAsset
(b)I
ntangibl
eAsset
(c)Curr
entAsset
(d)Noneoft hese
Answer:(
b)Intangi
bleAsset
64.
Anassetwhi chi
snotfici
ti
ousbuti
ntangi
blei
nnat
ure,
hav
ingr
eal
i
sabl
eval
uei
s:
(a)Machinery
(b)Bui
ldi
ng
(c)Fur
nit
ure
(d)Goodwill
Answer
:(d)Goodwi
l
l
65.
Whichoft hef oll
owingisnotamet
hodofv
aluat
ionofGoodwi
l
l:
(a)RevaluationMet hod
(b)AveragePr ofitMethod
(c)SuperPr ofi
tMet hod
(d)Capital
isationMet hod
Answer:(a)Reval
uati
onMet
hod
66.
Theexcessofav er
agepr
ofi
tsov
ert
henor
mal
prof
it
sar
ecal
l
ed:
(a)SuperProfi
ts
(b)Fi
xedPr of
it
s
(c)AbnormalProfi
ts
(d)Normal Pr
ofi
ts
Answer :(
a)SuperPr
ofits
67.
Goodwi l
lisa…………….asset
(a)Useless
(b)Tangible
(c)Wor t
hless
(d)Valuable
Answer:(c)Wor t
hless
68.
Undersuperpr of
itbasisgoodwill
iscalcul
atedby:
(a)No.ofyears’purchasedxAv erageProfi
t
(b)No.ofyears’purchasedxSuperpr ofi
t
(c)Superprofi
t-rExpectedrat
eofr etur
n
(d)Noneoft hese
Answer :(
b)No.ofy ears’
purchasedxSuperpr
ofit
69.
Profi
tsofthelastthreeyear
swer e₹6,
000,₹13,000and₹8,
000r
espect
ivel
y.Goodwi
l
latt
woy
ear
spur
chaseoft
he
averagenetprofi
twi l
lbe:
(a)₹81,000
(b)₹27,0000
(c)₹9,000
(d)₹18,000
Answer :(
d)₹18,000
70.
Whatdoy oumeanbySuperPr ofi
t?
(a)TotalProfi
t/
No.ofYears
(b)AverageProfit–NormalProfi
t
(c)WeightedProfit
/No.ofYear
s’Pur
chase
(d)Noneoft hese
Answer :(
b)Av er
ageProfi
t–NormalProfi
t
71.
Capit
al employedinabusinessi
s₹1,50,
000.Pr
ofi
tsar
e₹50,
000andt
henor
mal
rat
eofpr
ofi
tis20%.Theamountof
goodwillaspercapit
ali
sat
ionmethodwil
lbe:
(a)₹2,00,000
(b)₹1,50,000
(c)₹3,00,000
(d)₹1,00,000
Answer:(d)₹1,00,
000
72.
Weightedaveragemet hodofcal
cul
ati
nggoodwi
l
lisusedwhen:
(a)Pr
of i
tsareequal
(b)Pr
of i
thasincreasi
ngtrend
(c)Pr
ofithasdecreasi
ngt r
end
(d)Ei
ther(b)or(c)
Answer :
(d)Either(b)or(
c)
73.
Themonet aryv al
ueofreput
ati
onoft
hebusi
nessi
scal
l
ed:
(a)Goodwill
(b)SuperProfit
(c)Surpl
us
(d)Abnormal Profi
t
Answer :(
a)Goodwi
ll
74.
Af i
rm hasanaver
ageprof
itof₹60,
000Rat
eofret
urnoncapi
talempl
oyedis12.5%p.a.Tot
alcapi
tal
empl
oyedi
n
thefir
m was₹4,00,
000.Goodwil
lont
hebasi
softwoyear
spurchaseofsuperpr
ofi
tis:
(a)₹20,000
(b)₹15,000
(c)₹10,000
(d)Noneofthese
Answer :(
a)₹20,000
75.
Undercapitali
sati
onmet hod,goodwi l
liscalcul
atedby:
(a)AverageProfitxNo.ofYear s’Purchase
(b)SuperProfitxNo.ofYear s’Purchase
(c)Totalofthediscount
edv alueofexpect edfut
urebenef
it
s
(d)SuperProfit-
rExpectedRat eofRet ur
n
Answer :(
d)SuperProfi
t-rExpect
edRateofRet
urn
76.
“Goodwi l
li
snothingmorethanprobabi
l
ityt
hatt
heoldcust
omerwi
l
lresor
ttot
heol
dpl
ace.
”Thi
sdef
ini
ti
onof
goodwi l
lwasgivenby:
(a)SpicerandPegler
(b)ICAI
(c)LordEldon
(d)AICPA
Answer:(
c)LordEldon
77.
Whatwillbetheval
ueofgoodwi
ll
att
wicet
heav
erageofl
astt
hreey
ear
spr
ofi
tift
hepr
ofi
tsoft
hel
astt
hreey
ear
s
were₹4,000,₹5,
000and₹6,000?
(a)₹5,
000
(b)₹10,
000
(c)₹8,
000
(d)Noneofthese
Answer:(
b)₹10,000
78.
TheValuati
onofGoodwill
isnotnecessar
yinSol
eTr
adi
ng:
(a)Onsell
i
ngtheFir
m
(b)Onmakingapartner
(
c)Onesti
mati
onofAsset
s
(
d)OnClosi
ngtheFi
rm
Answer
:(d)OnCl
osi
ngt
heFi
rm

Account ancyMCQsf orCl ass12wi thAnswer :

sChapt er4Ret i
rementorDeat hofaPar t
ner
Selectt heBestAl t
ernat e:
1.Ret i
ringpar t
neri scompensat edf orpartingwi tht hef ir
m’ sf utur epr ofit
sinfavourofremaini
ngpartners.
Ther emai ningpar tner scont ri
but et osuchcompensat i
onamounti n:
(A)Gai ningRat io
(B)Capi talRatio
(C)Sacr ifi
cingRat io
(D)Pr ofitShari
ngRat i
o
Answer :A
2.‘GainingRat io’means: (
C. S.Foundat i
onDec.2012)
(A)OldRat io–NewRat io
(B)NewRat io–Ol dRat io
(C)OldRat io–Sacr if
ici ngRat io
(D)NewRat io–Sacr ificingRat io
Answer :B
3.Whatt reatmenti smadeofaccumul atedpr ofit
sandl ossesont her etir
ementofapar tner
?
(A)Cr editedtoal lpar tner ’scapi talaccount sinoldr at io.
(B)Debi tedt oallpar tner ’scapi talaccount si nol drat io.
(C)Cr editedtor emai ni ngpar tner’scapi talaccount si nnewr ati
o.
(D)Cr editedtor emai ni ngpar tner’scapi talaccount si ngai ningr atio.
Answer :A
4.Att het imeofr etirementofapar tner,profitonr ev aluationwi l
l becr edi
tedto:
(A)Capi talAccountofr etiringpar tner
(B)Capi talAccount sofal l par tnersi ntheol dpr ofitshar i
ngr ati
o.
(C)Capi talAccount soft her emai ningpar tnersint hei roldpr ofi
tshar ingrati
o
(D)Capi talAccount soft her emai ningpar tnersint hei rnewpr ofitshar ingrati
o
Answer :B
5.Whatj ournal entrywi l
l ber ecor dedf orwr iti
ngof ft hegoodwi llal readyexisti
nginBalanceSheetatthe
ti
meofr eti
rementofapar tner ?
(A)Ret iri
ngPar tner’sCapi talA/ cDr .ToGoodwi llA/c
(B)All Partner’
sCapi tal A/ cs( i
ncl udingr eti
ring)Dr .(inol dr at i
o)ToGoodwi l
lA/c
(C)Remai ningPar tner ’
sCapi tal A/ csDr .(i
ngai ningr atio)ToGoodwi llA/c
(D)Remai ningPar tner ’
sCapi tal A/ csDr .(i
nnewr atio)ToGoodwi llA/ c
Answer :B
6.Whatj ournal entrywi l
l ber ecor dedf ordeceasedpar t
ner ’
sshar ei npr ofi
tfr
om theclosureofl
astbalance
sheett il
l t
hedat eofhi sdeat h?
(A)Pr ofitandLossA/ cToDeceasedPar tner’sCapi tal A/ cDr .
(B)DeceasedPar tner ’
sCapi t
al A/ cToPr ofitandLossA/ cDr .
(C)DeceasedPar t
ner ’sCapi t
al A/ cToPr ofitandLossSuspenseA/ cDr .
(D)Pr ofitandLossSuspenseA/ cToDeceasedPar tner ’
sCapi tal A/ cDr .
Answer :D
7.Onr eti
rementofapar tner ,goodwi l
lwillbecr editedt otheCapi tal Accountof:
(A)Ret iri
ngPar tner
(B)Remai ningPar tner s
(C)All Partners
(D)Noneoft heAbov e
Answer :A
8.Ont hedeat hofapar tner ,theamountduet ohi m wi l
lbecr editedt o:
(A)Allpartner’
sCapi tal Account s
(B)Remai ningpartner’sCapi t
al Account s
(C)HisExecut or’
sAccount
(D)Gov ernments’Rev enueAccount
Answer :C
9.Howgoodwi l
li
sr ecor dedont her eti
rementofapar tner?
(A)Remai ningPar t
ner ’
sCapi talA/csDr .(InGai ni
ngRat i
o)ToRet i
ri
ngPar t
ner ’
sCapi talA/ c(wit
hhisshare
ofgoodwi ll
)
(B)Remai ningPartner ’
sCapi talA/csDr .(I
nNewRat i
o)ToRet i
ri
ngPar tner’
sCapi t
al A/ c(withhisshareof
goodwi ll
)
(C)Goodwi llA/cDr.ToAl lPar tner’
sCapi talA/ cs( I
nOl dRatio)
(D)Goodwi llA/cDr.ToRet i
ringPar tner’
sCapi talA/ c(withhisshar e)
Answer :A
10.A,BandCar epar tnersi n3: 4:2.Bwant st oretir
ef r
om t hefirm.Thepr ofi
tonr ev aluati
onont hatdat
e
was₹36, 000.Newr atioofAandCi s5: 3.Prof i
tonr evaluat
ionwi llbedist
ributedas:
(A)A₹16, 000;B₹12, 000; C₹8, 000
(B)A₹12, 000;B₹16, 000; C₹8, 000
(C)A₹22, 500;C₹13, 500
(D)A₹23, 625;C₹12, 375
Answer :B
11.A,BandCar epar tnersshar i
ngpr ofit
sint her ati
oof5: 2: 1.Ifthenewr ati
oont her eti
rementofAi s3:
2,whatwi llbethegai ningr atio?
(A)11: 14
(B)3: 2
(C)2: 3
(D)14: 11
Answer :D
12.P,QandRar epar tnersshar i
ngpr ofit
sint her ati
oof5: 4: 3.Qr eti
resandPandRdeci det oshare
futur
epr ofi
tsequally.Gai ningRat i
owi l
lbe:
(A)5: 3
(B)1: 1
(C)1: 3
(D)3: 1
Answer :C
13.A,BandCar epar tnersshar i
ngpr ofit
sint her ati
oof1/ 2: 1/4: 1/4.Newr atioont her eti
rementofBwi l
l
be:
(A)2: 4
(B)1: 2
(C)2: 1
(D)1/4: 1/2
Answer :C
14.A,BandCar epar tnersshar i
ngpr ofit
sint her ati
oof1/ 4: 3/10: 9/20.TheNewr at ioont heret
irement
ofCwi llbe:
(A)6: 5
(B)5: 6
(C)4: 3
(D)4: 10
Answer :B
15.X,YandZhav ebeenshar ingpr ofi
tsint her at
ioof4: 2:1Zr eti
res.XandYt akeZ’ sshar eequally
.New
profi
tshar i
ngratiowi l
l be:
(A)5: 2
(B)5: 3
(C)9: 5
(D)4: 2
Answer :C
16.P, QandRhav ebeenshar ingpr ofit
sandl ossesi nther at
ioof5: 3: 2.Qr et
ires.HisshareistakenbyP
andRi ntherati
oof2: 1.Newpr ofi
tshar i
ngr ati
owi llbe:
(A)6: 4
(B)7: 3
(C)7: 2
(D)6: 3
Answer :B
17.A, BandCshar epr of
it
sandl ossesoft hef i
rm equal ly.Breti
resf r
om busi nessandhi sshareis
purchasedbyAandCi nther ati
oof2: 3.Newpr ofitsharingrati
obet weenAandCr especti
velywouldbe:
(C.S.Foundat
ion,Dec.2012)
(A)01: 01
(B)02: 02
(C)07: 08
(D)03: 05
Answer :C
18.P, QandRhav ebeenshar ingpr ofit
si nther at
ioof8: 5:3.Pr etir
es.Qt akes3/ 16thsharefrom PandR
takes5/16thsharef rom P.Newpr ofi
tshar i
ngr at
iowi llbe:
(A)1: 1
(B)10: 6
(C)9: 7
(D)5: 3
Answer :A
19.A, BandCar eequal partners.Cr etires.Hesur render s3/5thofhi sshar einfavourofAand2/ 5thin
favourofB.Newr ati
owi llbe:
(A)3: 2
(B)8: 7
(C)7: 8
(D)2: 3
Answer :B
20.P, QandRar epar t
nersshar ingpr ofitsintheratioof4: 3: 2.Qr etir
esandhi sshar ewast akenupbyP
andRi ntherati
o3: 2.Newpr ofi
tshar i
ngr atiowillbe:
(A)16: 29
(B)29: 16
(C)3: 2
(D)2: 3
Answer :B
21.L,PandGar et hreepar t
ner ssharingpr ofitsinther atio15: 9: 8.Gr eti
res.LandPdeci dedt oshare
profi
tsinequalratio.Gainingr ati
owi llbe:
(A)15: 9
(B)9: 15
(C)7: 1
(D)1: 7
Answer :D
22.On1stApr il
,2019A, BandCwer epar tnersshar ingprofit
sandl ossesint heratioof5:3: 2
respecti
vel
y.Ont hisdat eBr etir
es.Thenewpr ofi
tshar i
ngr ati
oofAandCwi l
lbe3: 2.Gai
ningrati
owil
lbe:
(A)1: 2
(B)2: 1
(C)1: 1
(D)5: 2
Answer :A
23.B,PandLshar ingpr ofi
tsint heratio4:3:
2.Br etires,PandLdeci dedtoshar epr
ofit
si nfutur
ei nthe
rati
oof5: 3.Gainingrat i
owi llbe:
(A)11: 21
(B)21: 11
(C)11: 13
(D)13: 11
Answer :B
24.P,QandRwer epar tnersshar i
ngpr ofi
tsinther atio2:2: 1.Qretir
esandt henewpr ofitshar
ingr atioof
PandRwi l
lbe3: 1.Gai ningr ati
owi llbe:
(A)1: 7
(B)2: 1
(C)1: 2
(D)7: 1
Answer :D
25.A,BandCar eequal part
ner sinaf ir
m.Br et
iresandt her emainingpartnersdeci
det oshar et
hepr ofi
ts
ofthenewf i
rmi nt heratioof5: 4.Gainingratiowi llbe:
(A)1: 1
(B)1: 2
(C)2: 1
(D)5: 4
Answer :C
26.A,BandCar epar t
ner sshar ingprofitorlossint herati
oof3: 2: 1.Breti
resandaf t
erB’ sret
ir
ementA
andCagr eedtoshar epr ofi
torl ossint heratioof
3: 2infuture.Theirgainingr atiowillbe:
(A)3: 1
(B)1: 3
(C)3: 7
(D)Noneoft heabov e
Answer :C
27.A,BandCar epar t
ner sshar ingprofitorlossint herati
oof4: 3: 2.Creti
resandaf t
erC’ sret
irement4
andBagr eedt oshar epr ofi
torl ossint heratioof4: 3infuture.Theirgai
ningr at
iowil
lbe:
(A)3: 2W
(B)4: 3
(C)3: 4
(D)1: 1
Answer :B
28.A,BandCar epar t
ner sshar ingprofitorlossint herati
oof2: 3: 4.Areti
resandaf t
erA’ sret
irementB
andCagr eedt oshar epr ofi
torl ossint heratioof3: 4infuture.Theirgai
ningr at
iowil
lbe:
(A)2: 3
(B)4: 3
(C)3: 4
(D)1: 1
Answer :C
29.A,BandCwer epar tnersi naf ir
m shar i
ngpr ofitsandl ossesi ntherat
ioof2: 2:1.Thecapi t
al balance
are₹50,000f orA,? ₹70,000f orB, ₹35,000forC.Bdeci dedtor eti
ref r
om t
hef ir
m andbal ancein.reser v
eon
thedatewas₹25, 000.Ifgoodwi llofthef i
rm wasv aluedat₹30, 000andpr ofitonreval
uat i
onwas₹7, 500
then,whatamountwi l
lbepay abletoB1
(A)₹70,820
(B)₹76,000
(C)₹75,000
(D)₹95,000
Answer :D
30.P, QandRar eshar ingpr ofi
tsandl ossesequal ly.Rr eti
resandt hegoodwi l
lisappear i
ngint hebooksat
₹30,000.Goodwi l
l oft hef ir
mi sv aluedat.₹1, 50, 000.Cal culatethenetamountt obecr edit
edt oR’ sCapit
al
A/c.
(A)₹60,000
(B)₹50,000
(C)₹40,000
(D)₹10,000
Answer :C
31.Ram, Kr i
shnaandGaneshwer eshar ingpr of it
sandl ossesi nther atioof5: 3: 2.Ram retir
esand
Kri
shnaandGaneshshar et hef utur epr ofitsandl ossesequal l
y.Goodwi l
l oft hef i
rmi sval
uedat₹1, 00,
000.
Calculat
et heamountofgoodwi l
l tobedebi tedt oKr ishna’sandGanesha’ sCapi t
al A/c.
(A)₹60,000&₹40, 000
(B)₹20,000&₹30, 000
(C)₹40,000&₹60, 000
(D)₹30,000&₹20, 000
Answer :B
32.A, BandCar epar tner swi thpr ofitshar i
ngr atio4: 3:2.Br et i
resandgoodwi llwasv al
ued₹1, 08,000.I
f
A&Cshar epr of
itsi n5: 3,findoutt hegoodwi llshar edbyAandCi nf avourofB.
(A)₹22,500and₹13, 500
(B)₹16,500and₹19, 500
(C)₹67,500and₹40, 500
(D)₹19,500and₹16, 500
Answer :D
33.A, BandCar eshar ingpr ofi
tsi nt her atioof3: 2: 1.Br et i
resandont hedayofB’ sreti
rementGoodwi ll
i
sv aluedat₹60, 000.AandCdeci dedt oshar ef uturepr ofi
tsint her atioof3: 2.Jour nalentrywillbe:
(A)A’sCapi talA/cDr .18, 000C’ sCapi t
al A/ cDr .42,000ToB’ sCapi talA/ c60, 000
(B)A’sCapi talA/cDr .6, 000C’ sCapi talA/ cDr .14, 000ToB’ sCapi tal A/ c20, 000
(C)A’sCapi talA/cDr .36, 000C’ sCapi t
al A/ cDr .24,000ToB’ sCapi talA/ c60, 000
(D)A’sCapi talA/cDr .12, 000C’ sCapi t
al A/ cDr .8,000ToB’ sCapi t
al A/ c20, 000
Answer :B
34.P, QandRshar epr of itsinther atioof5: 4:3./ /retiresandt henewr atioi s5: 3.IfRisgiven? 6,000as
goodwi l
l,j
our nalent rywi l
l be:
(A)P’sCapi talA/cDr .1, 000Q’ sCapi talA/ cDr .5, 000ToR’ sCapi tal A/c6, 000
(B)P’sCapi talA/cDr .5, 000Q’ sCapi talA/ cDr .1, 000ToR’ sCapi talA/ c6, 000
(C)P’sCapi talA/cDr .3, 750Q’ sCapi talA/ cDr .2, 250ToR’ sCapi tal A/c6, 000
(D)P’sCapi talA/cDr .3, 333Q’ sCapi talA/ cDr .2, 667ToR’ sCapi tal A/c6, 000
Answer :B
35.X, YandZwer epar t
ner si naf i
rm shar ingpr of i
tsint her ati
oof3: 2: 1.Xr eti
redandt henewpr ofit
sharingratiobetweenYandZwi l
l be5: 4.OnXsr etirementt hegoodwi lloft hef i
rm wasv aluedat₹54, 000.
Journalent r
ywi l
l be:
(A)Y’sCapi talA/cDr .24, 000Z’ sCapi talA/ cDr .30, 000ToX’ sCapi t alA/ c54, 000
(B)Y’sCapi talA/cDr .15, 000Z’ sCapi talA/ cDr .12, 000ToX’ sCapi tal A/ c27, 000
(C)Y’sCapi talA/cDr .12, 000Z’ sCapi talA/ cDr .15, 000ToX’ sCapi talA/ c27, 000
(D)X’sCapi talA/cDr .27, 000ToY’ sCapi tal A/c12, 000ToZ’ sCapi tal A/ c15, 000
Answer :C
36.A, BandCar epar tner sshar ingpr ofit
si nt her atioof3: 4: 5.Br etiresandt hegoodwi l
loft hef i
rmis
valuedat₹42, 000.AandCdeci det oshar epr ofitsi nt heratioof3: 4.Jour nal entrywill
be:
(A)A’sCapi talA/cDr .6, 000C’ sCapi talA/ cDr .8, 000ToB’ sCapi tal A/c14, 000
(B)A’sCapi talA/cDr .7, 500C’ sCapi talA/ cDr .6, 500ToB’ sCapi talA/ c14, 000
(C)A’sCapi talA/cDr .22, 500C’ sCapi t
al A/ cDr .19,500ToB’ sCapi talA/ c42, 000
(D)B’sCapi talA/cDr .14, 000ToZ’ sCapi tal A/c7, 500ToC’ sCapi tal A/c6, 500
Answer : B
37.P, QandRwer epar t nersshar i
ngpr ofitsi nther atio5: 3: 2r espectively .Pr et i
resfrom t hef i
rm andQ
andRdeci detoshar ef ut urepr ofitsequal l
y .Goodwi lli
sv al
uedat₹50, 000.Adj ust mentent ryforgoodwi l
l
wil
l be:
(A)Q’ sCapi talA/ cDr .15, 000R’ sCapi talA/ cDr .10, 000ToP’ sCapi talA/ c25, 000
(B)Q’sCapi talA/ cDr.20, 000R’ sCapi talA/ cToDr .30, 000T’sCapi talA/c50, 000
(C)Q’ sCapi talA/ cDr .12, 500R’ sCapi talA/ cDr .12, 500ToP’ sCapi talA/ c25, 000
(D)Q’ sCapi talA/ cDr .10, 000R’ sCapi talA/ cDr .15, 000ToP’ sCapi talA/ c25, 000
Answer : D
38.X, YandZar epart ner sshar ingpr ofitsint her at ioof2: 3:5.Goodwi l
l alreadyappear ingi ntheirbooks
atav al ueof₹60, 000.Xr etir
esandYanddeci dedt oshar ef ut
urepr ofi
tsequal ly.Jour nal entrywi l
lbe:
(A)FsCapi talA/cToA’ sCapi tal A/cDr .12, 00012, 000
(B)FsCapi talA/ cTo/ FsCapi t
al A/cDr .60,00060, 000
(C)XsCapi tal
A/ cDr .2, 400FsCapi t
al A/cDr .3,600Z’ sCapi t
al A/ cToGoodwi ll A/cDr.6, 00012, 000
(D)XsCapi talA/cDr .12, 000FsCapi talA/cDr .18, 000Z’ sCapital A/cDr .30, 000
Answer : D
39.A, BandCar epar tner sinaf irm shar i
ngpr of i
t/lossi ntherat ioof2: 2: 1.OnMar ch31, 2019, Cdi ed.
Account sar eclosedonDec. ,31ev eryy ear.Thesal esf orthey ear2018was₹6, 00,000andt hepr ofitswer e
60,000.Thesal esfort heper i
odf rom Jan.1, 2019t oMar ch31, 2019wer e2, 00, 000.Theshar eofdeceased
partneri nthecur renty ear ’sprofitsont hebasi sofsal esis:
(A)₹20, 000
(B)₹8,000
(C)₹3, 000
(D)₹4, 000
Answer : D
40.A, BandCwer epar tner sshar i
ngpr ofitsandl ossesi nther atioof2: 2: 1.Booksar ecl osedon31st
Mar chev eryyear.Cdi eson5t hNov ember ,2018.Undert hepar tnershipdeed, theexecut orsoft he
deceasedpar t
nerar eent itl
edt ohi sshar eofpr ofittot hedat eofdeat h,cal culat edont hebasi sofl ast
year’spr ofit
.Pr ofi
tfort hey earended31stMar ch, 2018was₹2, 40,000.C’ sshar eofpr of i
twi llbe:
(A)₹28, 000
(B)₹32, 000
(C)₹28, 800
(D)₹48, 000
Answer : C
41.P, QandRwer epar t nersshar i
ngpr ofitsi nther atiooftheirCapi t
al‘cont ribut i
onwhi chwer e₹6, 00,000;
₹4,00,000and₹5, 00,
000r espectively.Thei rbooksar eclosedon31stMar chev eryy ear.Pdi eson24t h
August ,2018.Undert hepar tnershipdeed, deceasedpar tnerisent itl
edt ohi sshar eofpr ofi
t/losst ot he
dateofdeat hbasedont heav eragepr ofitsofpr ecedi ngt hreey ears.Prof i
tswer e2015₹50, 000; 2016
₹1,20,000( Loss) ;2017₹30, 000and2018₹60, 000.P’ sshar eofpr of i
t/l
osswi llbe:
(A)₹3, 200
(B)₹6,400
(C)₹12, 000
(D)₹4, 800
Answer : D

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1.Inwhi chcondi tionapar tnershipf ir
mi sdeemedt obedi ssolved?
(A)Onapar tner’sadmi ssi on
(B)Onr et irementofapar tner
(C)Onexpi ryoft heper i
odofpar tner ship
(D)Onl ossi npar tner ship
Answer : C
2.Cour tcanmakeanor dert odissol vet hef i
r m when:
(A)Somepar t
nerhasbecomef ull
ymad
(B)Partner shipdeedi sf ul l
yf oll
owed
(C)Cont inuedf ut urepr of itsar eexpect ed
(D)Fi
rmi sr unningl egal busi ness
Answer : A
3.Ondi ssol uti
onofaf irm, reali
sationaccounti sdebi tedwi th
(A)Allasset stober ealised
(B)Allout si deliabi l
itiesoft hef ir
m
(C)Cashr eceivedonsal eofasset s
(D)Anyassett akenov erbyoneoft hepar tners
Answer : A
4.Ondi ssol uti
onofaf irm, outoft hepr oceedsr ecei vedf r
om t hesaleofasset swi l
lbepaidfi
rstofal
l
(A)Part ner ’
sCapi tal
(B)Partner ’
sLoant oFi r m
(C)Part ner ’
saddi tional capi tal
(D)Out sideCr edi tors
Answer : D
5.Atthet imeofdi ssol ut ionoff irm, “Loanofpar tners”(Loansgi v
enbypar tnerstothefi
rm)ispaidoutof
theamountr ealisedonsal eofasset s:
(A)Aftermaki ngt hepay mentofl oansgi venbyt hirdparty
(B)Aftermaki ngt hepay mentofbal anceofCapi talAccount sofpartners
(C)Aftermaki ngt hepay mentofabov e( A)and( B)
(D)Befor et hepay mentofl oansgi venbyt hirdpar t
y
Answer : A
6.Atthet imeofdi ssol ut ionoff irm, atwhi chst aget hebal anceofpar tner’
scapi t
alaccountsispai
d?
(A)Aftermaki ngt hepay mentt othirdpar t
y’sloans
(B)Befor emaki ngt hepay mentofpar tner sinr espectoft heirloans
(C)Aftermaki ngt hepay mentt othirdpar t
yf ortheirloansaswel laspartner sl
oans
(D)Noneoft heabov e.
Answer : C
7.Onf i
r m’ sdi ssol ution, whi choneoft hef ollowingaccountshoul dbepr eparedatthelast?
(A)Real isat i
onAccount
(B)Partner ’
sCapi tal Account s
(C)CashAccount
(D)Part ner ’
sLoanAccount
Answer : C
8.Intheev entofdi ssol ut i
onofapar tner shipfirm, thepr ov i
sionfordoubt fuldebtsi
st r
ansfer
redto:
(A)Real isat i
onAccount
(B)Partner sCapi tal Account s
(C)Sundr yDebt or sAccount
(D)Noneoft heabov e
Answer : A
9.Ondi ssol uti
on, i
fapar tnerunder takest omakepay mentofal i
abil
it
yoft hef i
rmisdebited)
(A)Prof it&LossAccount
(B)Real isat i
onAccount
(C)Partner ’sCapi t
al Account
(D)CashAccount
Answer : B
10.Unr ecor dedl i
ability,whenpai dondi ssol ut i
onofaf ir
mi sdebi t
edto:
(A)Partner ’sCapi t
al A/ ’cs
(B)Real i
sat ionA/ c
(C)Liabiliti
esA/ c
(D)AssetA/ c
Answer : B
11.Ondi ssol uti
onofapar tnershipfirm, profitorl ossonr eal
i
sationisdist
ribut
edamongt hepart
ners
(A)Incapi t
al ratio
(B)I
nPr of i
tshar i
ngr at io
(C)Equal ly
(D)Noneoft heabov e
Answer : B
12.Ondi ssol uti
onoft hef irm, amountr ecei vedf r
om saleofunr ecordedassetiscr
edit
edto:
(A)Partner ’sCapi t
al Account s
(B)Prof i
tandLossAccount
(C)Real i
sat ionAccount
(D)CashAccount
Answer : C
13.Real i
sat ionA/ cisa:
(A)Nomi nal A/ c
(B)Real A/ c
(C)Personal A/c
(D)Real A/ caswel lasPer sonal A/ c
Answer : A
14.Intheev entofdi ssol utionoff irm, t
hepar tner’spersonalassetsarefir
stusedforpaymentofthe:
(A)Firm’sl iabili
t i
es
(B)Theper sonal li
abi li
tes
(C)Noneoft het wo
(D)Anyoft het wo
Answer : B
15.Apar tner shipf i
rmi scompul soril
ydi ssolv ed:
(A)Whent hebusi nessoft hefir
mi sdecl aredi ll
egal
(B)Whenapar t
neroft hef irm dies
(C)Whenapar tneroft hef i
rm becomesi nsol vent
(D)Whenapar tnertr ansf er shisshar etosomeot herpersonwithouttheconsentofotherpar
tners
Answer : A
16.Att het imeoff i
rm’ sdi ssoluti
on, BalanceofGener alReserveshowni ntheBalanceSheeti
scredit
edt
o:
(A)Real i
sat ionAccount
(B)Credit or’sAccount
(C)Partner ’sCapi t
al Account
(D)Prof i
t&LossAccount
Answer : C
17.Ondi ssol uti
on, goodwi llaccounti str ansfer r
edt o
(A)IntheCapi talAccount sofPar tners
(B)Ont hecr editofCashAccount
(C)Ont heDebi tofReal i
sat i
onAccount
(D)Ont heCr editofReal i
sat ionAccount
Answer : C
18.Att het imeofdi ssol utionofpar tnershipf irm, fi
cti
ti
ousasset saretr
ansferr
edto:
(A)Capi
talAccountsofPar
tner
s
(B)Real
isati
onAccount
(C)CashAccount
(D)Part
ners’LoanAccount
Answer:A

19.Att imeofdi ssoluti

onofpar tnershi
pf i
rm,thebalanceofprofi
tandlossaccountshowni ntheassets
sideofBal ancesheetoft hef irmi stransferr
edto:
(A)Real isationAccount
(B)CashAccount
(C)Capi tal Account sofpar tners
(D)LoanAccount sofpar t
ner s
Answer :C
20.Att het imeofdi ssolutionofpar t
nershipfi
rm, t
heamountof‘ Bil
l
sPay abl
e’shownintheli
abil
itysi
deof
BalanceSheeti stransfer r
edt o:
(A)Capi talAccount sofPar tner s
(B)Real isationAccount
(C)CashAccount
(D)LoanAccountofPar tner s
Answer :B
21.Ondi ssol uti
on,thefinal balanceofcapi talaccountsaretr
ansferr
edto:
(A)Real isationAccount
(B)CashAccount
(C)Pr ofit&LossAccount
(D)LoanAccount sofPar tners
Answer :B
22.Changei ntheexi sti
ngagr eementbet weent hepartner
siscalled:
(A)Di ssolutionofFi rm
(B)Dissol utionofPar tner ship
(C)Di ssolutionofBusi ness
(D)Al loftheAbov e
Answer :B
23.Ondi ssol uti
on,thebal anceof‘ Prof
it&LossAccount ’appeari
ngontheasset ssi
deofaBal anceSheet
i
st ransferredt o:
(A)Ont hedebi tofReal isat i
onAccount
(B)Ont hecr editofReal isationAccount
(C)Ont hedebi tofPar tner ’sCapi talAccount s
(D)Ont hecr editofPar tner ’
sCapi talAccounts
Answer :C
24.Ondi ssol uti
onofaf irm, apar t
nerpaid₹700f orfir
m’sreali
sati
onexpenses.Whichaccountwillbe
debited?
(A)CashAccount
(B)Real isationAccount
(C)Capi tal Accountoft hePar tner
(D)Pr ofit&LossA/ c
Answer :B
25.Ont akingr esponsibilityofpay mentofr eali
sati
onexpensesbyapar tner,
theaccountcredi
tedwi l
lbe:
(A)Real isationAccount
(B)CashAccount
(C)Capi talAccountoft hePar tner
(D)Noneoft heAbov e
Answer :C
26.Ondi ssol utionoff irm, losscalculateinreali
sat ionaccounti sdebit
ed/ credit
edt owhichaccount ?
(A)CashAccount( Cr edi t)
(B)Partners’ Capi talAccoi mt s(Debit
)
(C)Partners’ Capi tal Account s(Credi
t)
(D)RealisationAccount( Debit)
Answer :B
27.Profitorl ossofr eal isationaccounti str
ansf erredt o:
(A)Profit&LossAccount
(B)Capital Account sofPar tners
(C)BalanceSheet
(D)Noneoft heAbov e
Answer :B
28.Whi choft hef ollowi ngi stransfer
redt oRealisat ionAccount :
(A)BalanceofCashAccount
(B)BalanceofPr of i
t&LossAccount
(C)Amountr ealisedonsal eofasset s
(D)Reser ves
Answer :C
29.Whi choft hef ollowi ngi snott r
ansferredtoReal isat
ionAccount :
(A)BalanceofCashAccount
(B)BalanceofReser v es
(C)BalanceofPr of i
t&LossAccount
(D)AlloftheAbov e
Answer :D
30.Ont akingr esponsi bili
tyofpay mentofal i
abilityof₹50,000byapar tner,theaccountcr edit
edwi l
lbe:
(A)RealisationAccount
(B)CashAccount
(C)Capi t
al Accountoft hePar t
ner
(D)Liabil
ityAccount
Answer :C
31.Cashbal anceshowni nt heBalanceSheeti sshownondi ssoluti
onoff ir
mi n:
(A)RealisationAccount
(B)CashAccount
(C)Capi t
al Account
(D)Noneoft heAccount
Answer :B
32.Onf irm’sdi ssol ution, onr eali
sati
onofgoodwi ll(whichwasshowni nBal anceSheet )willbecredi
tedto:
(A)CashA/ c
(B)RealisationA/ c
(C)Profit&LossA/
(D)Noneoft heA/ c
Answer :B
33.Ondi ssol utionofaf irm, it
sBalanceSheetr ev ealedtotal
cr edit
ors₹50,000; TotalCapit
al ₹48,
000;Cash
Balance₹3, 000.I t
sasset swer ereali
sedat12%l ess.Lossonr eali
sati
onwi llbe:
(A)₹6,000
(B)₹11,760
(C)₹11,400
(D)₹3,600
Answer :C
34.Onf irm’sdi ssol ution, whenapar tnervoluntarilygiveshisper sonalassett ofi
rms’ cr
editoraspayment,
theaccountcr edi t
edwi l
l be:
(A)RealisationA/ c
(B)Partner ’
sCapi tal A/c
(C)CashA/ c
(D)Noneoft heA/ c
Answer :B
35.Ondi ssol uti
on, whenapar t
nert akesov eranunr ecordedasset,i
scredi
ted:
(A)Capi t
al Accountoft hePar t
ner
(B)CashAccoun
(C)AssetAccount
(D)Real i
sationAccount
Answer :D
36.Ondi ssol uti
on, whenapar t
nert akesov eranasseti sdebited
(A)Real i
sationAccount
(B)Partner ’
sCapi tal Account
(C)CashAccount
(D)AssetAccount
Answer :B
37.Incaseofdi ssoluti
on, asset sar et r
ansfer r
edtoRealisati
onAccount:
(A)AtBookVal ue
(B)AtMar ketVal ue
(C)CostorMar ketVal ue, whi cheveri slower
(D)Noneoft heAbov e
Answer :A
38.Ondi ssol uti
on, thebal anceofapar t
ner’scapital
accountappearingontheassetssideofabalance
sheetist ransferredt o:
(A)Ont heDebi tofReal isationAccount
(B)Ont heCr editofReal isationAccount
(C)Ont heDebi tofPar tner ’
sCapi t
al Account
(D)Ont heCr editofCashAccount
Answer :C
39.Ondi ssol uti
on, partner ’
sl oanist ransferredto:
(A)Partner ’
sCapi t
al Account
(B)RealisationAccount
(C)Partner ’
sLoanAccount
(D)Rev aluationAccount
Answer :C
40.Sundr yCr editorsamount edt o? 8,000.Thesewer epaidatadiscountof5%.Reali
sati
onaccountwill
be
debitedby
(A)₹8,000
(B)₹7,600
(C)₹400
(D)₹8,400
Answer :B
41.Ther ewasanUnr ecor dedassetof? 2,000whi chwast akenoverbyapar t
nerat?1,500.Par
tner’
s
CapitalAccountwi llbedebi tedby
(A)₹2,000
(B)₹1,500
(C)₹500
(D)₹3,500
Answer :B
42.Ondi ssol uti
onofaf i
rm, anunr ecordedf urnit
ureofthev al
ueof₹5,000wast akenupbyapar t
nerfor
₹4,300.Whi chAccountwi ll
becr editedandbyhowmuchamount ?:
(A)CashAccountby₹4, 300
(B)Real i
sat i
onAccountby₹700
(C)Par tner ’sCapi talAccountby₹5, 000
(D)Real i
sat i
onAccountby₹4, 300
Answer :D
43.Ont hebasi soff oll
owingdat a,fi
nal pay mentt oapartneronf irm’sdissol
ution‘wil
lbemade: Debit
balanceofCapi talAccount₹14, 000; Shar eofhi sprofi
tonr eal
isation₹43,000;Fir
m’sassettakenov erby
himf or₹17, 000.
(A)₹31, 000
(B)₹29, 000
(C)₹12, 000
(D)₹60, 000
Answer :C
44.Onpay mentofexpensesofdi ssolution,accountwi l
lbedebi ted:
(A)Real i
sat i
onAccount
(B)CashAccount
(C)Pr ofit&LossAccount
(D)Noneoft heAbov e
Answer :A
45.Anunr ecor dedassetwasv aluedat₹1, 00,000.Onf i
rm’sdissol ut
ion,i
twassol dfor52%.Reali
sation
accountwi llbecr editedwi t
h:
(A)₹52, 000
(B)₹48, 000
(C)₹1, 00,000
(D)Noneoft heAbov e
Answer :A
46.Onf irm’ sdissol uti
on, apartnerunder tookf ir
m’scredit
or sat?17, 000.Inthi
scaset heaccountwi l
lbe
credited:
(A)Cr editor sA/ c
(B)CashA/ c
(C)Real i
sat i
onA/ c
(D)Par tner ’sCapi talA/ c
Answer :D
47.Ondi ssol ution, l
ossesar ef i
rstofal l met:
(A)OutofCapi tal
(B)OutofPr of
its
(C)Outofpr i
vateasset sofpar tners
(D)Outofl oanf rom Bank
Answer :B
48.……………i sprepar edatt het i
meofdi ssolution:
(A)Rev aluationAccount
(B)Pr ofit&LossAccount
(C)Pr ofitandLossAppr opri
ati
onAccount
(D)Real i
sat i
onAccount
Answer :D
49.Whi letransf erri
ngasset stor ealisati
onaccounti somittedt obet ransf
erred:
(A)Pat ent s
(B)Goodwi ll
(C)Cash
(D)Inv est ment s
Answer :C
50.Ift otal asset sar e₹2,00,000; tot
al li
abili
tiesare₹40,000; amountr eali
sedonsal eofassetsis₹1,75,
000
andr eal i
sat i
onexpensesar e₹3, 000, t
hepr of i
torlossonr eali
sationwi l
lbe:
(A)Pr ofit₹12, 000
(B)Loss₹68, 000
(C)Loss₹28, 000
(D)Loss₹25, 000
Answer :C
51.Ondi ssol uti
onofaf irm, debt orswere₹17, 000.Ofthese₹500becamebadandt her estreal
ised60%.
Whi chaccountwi l
lbedebi tedandbyhowmuchamount ?
(A)Real isationAccountby₹16, 500
(B)Pr ofit&LossAccountby₹500
(C)CashAccountby₹9, 900
(D)Debt orsAccountby₹7, 100
Answer :C
52.Int heBal anceSheetTot al Debtorsappearat₹50, 000andPr ovi
sionf orDoubt f
ul Debtsappearat
₹1,500.Howmuchamountwi llbereali
sedf r om Debt ors,i
fbaddebt samountt o₹10,000andr emaining
debt orsar er eali
sedatadi scountof5%
(A)₹38, 000
(B)₹36, 500
(C)₹36, 575
(D)₹39, 500
Answer :A
53.Howmuchamountwi l
l bepai dtoCredit orsf or₹25,000if₹5,000oft hecredit
orsar enott obepai dand
ther emai ningcr editorsagreedt oaccept5%l essamount ?
(A)₹18, 750
(B)₹19, 000
(C)₹19, 750
(D)₹20, 000
Answer :B
54.P, apar tner,istobearal l expensesofr eal isati
onforwhi chhei stobepai d₹2,000.Phadt opay
reali
sat i
onexpensesof₹2, 500.Howmuchamountwi llbedebitedt oReal isat
ionAccount ?
(A)₹500
(B)₹2, 500
(C)₹4, 500
(D)₹2, 000
Answer :D
55.Howmuchamountwi l
l bepai dtoA,ifhi sopeni ngcapi t
alis₹2,00, 000andhi sshar eofrealisati
onprof
it
amount st o₹10, 000andhehast akenov erasset sv al
uing₹25,000f rom t hefi
rm?
(A)₹2, 35,000
(B)₹1, 65,000
(C)₹2, 15,000
(D)₹1, 85,000
Answer :D
56.Inv estment sv al
ued₹2, 00, 000wer enotshowni nthebooks.Oneoft hecredit
orst ookov erthese
i
nv estment si nfullsati
sfactionofhi sdebtof₹2, 20,
000.Howmuchamountwi ll
bededuct edfrom credi
tor
s?
(A)₹20, 000
(B)₹2, 20,000
(C)₹4, 20,000
(D)₹2, 00,000
Answer :B
57.Ifcr editor sare? 25,
000, capi t
ali
s? 1,
50, 000andcashbal anceis? 10,000,whatwi l
l betheamountof
sundr yasset s?
(A)₹1, 75,000
(B)₹1, 85,000
(C)₹1,65,000
(D)₹1,40,000
Answer :C
58.Ifopeni ngcapi tal
sofpar tner sar eA₹3, 00,000, B₹2, 00,000andC₹1, 00,000andt hei rdrawingsduring
theyearar eA₹50, 000, B₹40, 000andC₹30, 000andcr editorsar e₹60,000, whatwi l
l bet heamountof
assetsoft hef i
rm?
(A)₹5,40,000
(B)₹4,20,000
(C)₹4,80,000
(D)₹6,60,000
Answer :A
59.Iftotalasset sofaf i
r m ar e₹12, 00,000andt otal l
iabili
ti
esar e₹2, 40,000, whatwill bet hecapital
sofP, Q
andRi ftheyshar epr ofi
t sint her atiooft heircapi talsandpr ofitsharingr ati
oi s1:2: 3:
(A)P₹4, 80,000; Q₹3, 20,000; R₹1, 60,000
(B)P₹1, 60,000; Q₹3, 20,000; R₹4, 80,000
(C)P₹2, 00,000; Q₹4, 00,000; R₹6, 00,000
(D)P₹6, 00,000; Q₹4, 00,000; R₹2, 00,000
Answer :B
60.Ondi ssol utionofaf i
rm, apar t
ner ’
scapi t
al accounthasacr edi
tbal anceof₹42, 000.Hi sshareofpr of
it
i
nr eal
isationaccounti s? 9, 000.Hehaspai dfir
m’ sr ealisationexpenses₹3, 000.Hewi llfinal
lygeta
paymentof :
(A)₹39,000
(B)₹42,000
(C)₹54,000
(D)₹48,000
Answer :C
61.Ondi ssol utionofaf i
rm, apar t
nert ookov er₹17, 000i nvestment sf or₹14, 000.Whi choneoft he
foll
owingaccountwi llbedebi t
ed/ creditedwi t
hhowmuchamount ?
(A)Partner ’
sCapi talAccountDebi twi th₹14,000
(B)Partner’sCapi talAccountCr editwi th₹17,000
(C)Real i
sationAccountCr editwi th₹17, 000
(D)Real i
sationAccountCr editwi th₹3, 000
Answer :A
62.Ondi ssol utionoff i
rm, whi chi t
em i sdebitedt ot her eal i
sationaccount ?:
(A)Real i
sationexpensespai dbypar t
ner t
(B)Balanceofr eser v
ef und
(C)Amountofunr ecor dedasset
(D)Creditor’sbal anceshowni nt heBal anceSheet
Answer :A
63.Att het i
meofdi ssol utionofaf ir
m, Cr edi
torsar e₹70, 000; Partners’capitalis₹1,20, 000;CashBal ance
i
s₹10, 000.Ot herasset sr ealised₹1, 50, 000.Prof i
t/Lossi nther eali
sationaccountwi ll be:
(A)₹60,000( Loss)
(B)₹80,000( Profit)
(C)₹40,000( Loss)
(D)₹30,000( Loss)
Answer :D
64.Ondi ssol utionofaf i
rm, debt ors₹17, 000wer eshowni nt heBal anceSheet .Outoft his₹2,000became
bad.Onedebt orbecamei nsol vent.70%wer erecov eredf rom hi m outof₹5, 000.Full amountwas
recoveredf rom t hebal ancedebt ors.Onaccountoft hisi t
em, l
ossi nrealisati
onaccountwi l
lbe:
(A)₹5,100
(B)₹1,500
(C)₹3,500
(D)₹2, 000
Answer :C
65.X, YandZar epar tnersinaf irmint her atioof4: 3: 2.Onf i
rm’sdissoluti
on,firm’stotalassetsare
7₹70,000, creditor sare₹15, 000.Real isationexpensesar e₹2,100.Asset sreali
sed15%mor ethant hebook-
value.Cr editorswer e.pai d2%mor e.Forpr ofit
/l
ossonr ealisation,Fscapitalaccountwi ll
be
debited/ creditedwi th:
(A)Cr edit₹8, 100
(B)Cr edit₹2, 700
(C)Debi t₹2, 700
(D)Debi t₹2, 400
Answer :B
66.Ondi ssol utionofaf ir
m, fir
m’ sBal anceSheett otalis₹77, 000.Ont heasset ssideoft heBal anceSheet
i
temswer eshownpr eliminaryexpenses₹2, 000; Pr
ofit&LossAccount( Debit
)Bal ance₹4,000andCash
Balance₹1, 800.Lossonr eali
sationwas₹6, 300.Total asset s(includi
ngcashbal ance)r eali
sedwi ll
be:
(A)₹69, 200
(B)₹71, 000
(C)₹64, 700
(D)₹62, 900
Answer :C
67.Ondi ssol utionofaf ir
m, partners’ capital account sbal ancewas₹63, 000;creditorsbalancewas
₹12,000andpr ofit&l ossaccountdebi tbal ancewas₹6, 000.Pr ofitonreali
sati
onofasset swas₹7, 800.
Total amountr eal i
sedf r
om asset swas:
(A)₹81, 000
(B)₹76, 800
(C)₹70, 800
(D)₹None
Answer :B
68.Ondi ssol utionofaf ir
m, apar tnert ook- ov erthei
nv est ment sof₹15,000at₹19, 000.Byhowmuch
amountt heReal i
sat i
onAccountwi l
l becr edi ted?
(A)₹4, 000
(B)₹19, 000
(C)Ni l
(D)₹23, 000
Answer :B
69.Anu, BinaandChar anar epar t
ner s.Thef i
rm hadgi venal oanof₹20, 000toBi na.Ont heev entof
dissolution,t hel oanwi llbeset t
ledby: (
C. B.S.E.Sampl ePaper ,2015)
(A)Tr ansf erri
ngi ttodebi tsi
deofReal i
zat i
onAccount .
(B)Tr ansf er
r i
ngi tt ocreditsideofReal izationAccount .
(C)Tr ansf erri
ngi ttodebi tsi
deofBi na’sCapi talAccount .
(D)Binapay i
ngAnuandChar anpr ivately.
Answer :C
70.Ondissolut
ion,
ifapartnerunder
takestomakepay mentofaliabi
li
tyofthef i
rmisdebited
Reali
zati
onA/ c
71.I
ntheev entofdissol
uti
onofapar tner
shipfi
rm, t
heprovisi
onfordoubtfuldebtsi
stransfer
redto
Reali
zati
onA/ c
72.Atthetimeofdissoluti
onoffir
m, atwhichstagethebalanceofpartner’
scapital
accountsispaid?
Aft
ermaki ngthepay menttothi
rdpartyforthei
rloansaswel l
aspartner’
sloans.

73.
Cour
tcanmakeanor
dert
odi
ssol
vet
hef
ir
m when
 INDEX

S Contents Page
No. Nos
1 Accounting for Not For Profit Organisations 3-8
2 Accounting for Partnership firms-Basic concepts 8 - 14
3 Reconstitution of Partnership Firm_Admission of 14-18
a partner
4 Reconstitution of Partnership Firm-Retirement 18-26
and Death of a partner
5 Dissolution of Partnership Firm 26-32
6 Accounting for Share Capital 32-37
7 Issue and Redemption of Debentures 37-39
8 Analysis of Financial Statements 39-41
9 Cash Flow Statement 41-43

2
 ACCOUNTING FOR NOT FOR PROFIT ORGANISATIONS

One Mark Questions

1. The main object of non-profit organization is —

(A)To earn the Profit (B) To Serve the Society
(C) To Prepare Profit &Loss A/c (D) All the above
2. Subscription received by an organization is—
(A) Capital Receipt (B) Revenue Receipt
(C) Both ‘A’and ‘B (D) None of the above
3. Entrance fees received by a Club is treated as—
(A) Revenue Receipt (B) Capital Receipt
(C) Revenue Expenditure (D) None of these
4.Receipts and Payments A/c is a summary of—
(A) All Capital Receipts and Payments
(B) All Revenue Receipts and Payments
(C)All Revenue and Capital Receipts and Payments
(D) None of the above
5. Subscription received during the year Rs. 50,000; Subscriptions outstanding at the
end of the year Rs. 8,000; Subscription outstanding at the beginning of the year Rs.
6,000. Net Income from subscription will be—
(A)Rs.48,000 (B)Rs.64,000 (C)Rs.52,000 (D) Rs.36,000
6. Subscription received during the year Rs. 1,80,000; Subscriptions outstanding at the
end of the yearRs.20,000;Subscriptionsreceived in advance at the end of the year
Rs.10,000. The amount of subscription to be credited to Income and Expenditure
Account will be —
(A)Rs.2,10,000 (B)Rs.1,90,000 (C)Rs. 1,70,000 (D) Rs.2,00,000
7. In case specific fund is maintained, the expenses exceeding the amount of the funds,
should be recorded on—
(A) Liabilities side of the Balance Sheet
(B)Debit side of the Income and Expenditure Account
(C)Credit side of the Income and Expenditure Account
(D) Assets side of the Balance Sheet
8. All receipts from sale of consumable items are treated as—
(A) Capital Receipts (B) Revenue Receipts
(C) Both ‘A’and‘B’ (D) None of these
9. Subscriptions received in cash during the year Rs. 5,000, amount Received in advance
for the next year is Rs. 300. Amount outstanding for current year was Rs. 400. The
amount to be credited to the Income and Expenditure Account is—
(A)Rs.4,000 (B)Rs.5,100 (C)Rs.4,200 (D) Rs.4,600
10. If income is Rs. 16,000 and ‘deficit’ debited to capital fund is Rs. 4,300,
then expenditure
(A)Rs.16,000 (B)Rs.4,300 (C)Rs.20,300 (D) None of these
10. Balance of Income and Expenditure Account shows—
(A) Cash in hand (B) Capital Fund
(C)Net Profit (D) Excess of Income over Expenditure or vice-versa

3
11. Property received as a result of the will of the deceased person is Called
(A) Legacy (B)Honorarium (C)Donation (D)Subscription
12. Legacies should be treated as —
(A) A Liability (B) A Revenue Receipts (C)AnIncome (D) None ofthese
13. Life membership fees received by Club is shown in—
(A) Income andExpenditureA/c (B) Balance Sheet
(C) Receipts andPaymentsA/c (D) None of these
14. For non-trading organisationhonorariumis—
(A) A CapitalExpenditure (B) A Revenue Expenditure
(C)An Income (D) None of these
15. Receipts & Payments A/c is a—
(A) PersonalA/c (B)RealA/c (C)NominalA/c (D) None ofthese
16. Income & Expenditure A/c is a—
(A) PersonalA/c (B)RealA/c (C)NominalA/c (D) None ofthese
17. Which of the following is not a not-for-profit organisation—
(A) College (B)SportsClub (C)MarutiUdyog (D)Hospital
18. Income and Expenditure Account is prepared—
(A) By BusinessOrganisation (B) By Industrial Organisation
(C) ByNot-for-profitOrganisation (D) By all Organisations
19. Receipts and Payments Account usually indicates—
(A) Surplus (B)CapitalFund (C)DebitBalance (D) CreditBalance
20. Income and Expenditure Account generally indicates—
(A) Surplus/Deficit (B)Cash Balance
(C)Capital Fund (D) Net Profit/Loss

True/False
Q1. Income is shown on the debit side of Income and expenditure Account.
Q2. Income and Expenditure Account is a real account.
Q3. Only revenue items are recorded in the Income and Expenditure Account.
Q4. Expenses incurred on annual whitewashing of building is revenue expenditure.
Q 5. Scholarships granted to students out of funds provided by Government will be
Expenditure over incomes.
Fill in the Blanks
Q1. The regular source of income of income of a club is ………………..
Q2. The sale of old newspapers is of………………….. nature.
Q3. Not for Profit Organisation is a …………………….Legal entity.
Q4.Income and Expenditure Account shows the amount of subscription for the ………………….
Irrespective of the fact whether it is received or not.
Q5. An NPO does not have ………………… like proprietorship, partnership and joint stock
company.
¾ MARKS QUESTIONS
Q1 Rs.
Subscription received during 2018-2019 50,000
Subscription outstanding on 31-3-2019 8,000
Subscription outstanding on 01-04-2018 6,000
Calculate the amount of subscription to be credited to Income & Expenditure a/c for the yr.
2018-2019.

4
Q 2 Ascertain the amount of salary chargeable to Income & Expenditure A/c for 2019-2020
Rs.
Total salaries paid in 2019-2020 10,200
Prepaid salaries on 31-3-20019 1,200
Prepaid salaries on 31-3-2020 600
Outstanding salaries on 31-3-2019 900
Outstanding salaries on 31-3-2020 750

Q3 How would you deal with the following items in the Balance sheet of a NPO?
Rs.
1. Donations received for Auditorium construction
(Expected total cost of the auditorium Rs.40,00,000) 25,00,000
2. Expenditure on construction of Auditorium 21,00,000
3. Receipts from Charity show 10,000
4. Charity show expenses 11,000
5. Prize Fund 25,000
6. 6% Prize fund Investment 25,000
7. Donation for Prize Fund 5,000
8. Prizes awarded 6,000

Q 4. Stock of Cricket equipments on 1.1.2019 1,000

Stock of Cricket equipments on 31.12.2019 1,500
Cricket equipments purchased during the year 4,150

Q5.
Calculate the sports material to be debited to Income & Expenditure A/c for the year ended 31-3-2007
on the basis of the following information:

Particulars 1.4.2019 (Rs.) 31.3.2020 (Rs.)

Stock of sports material 7,500 6,400
Creditors for sports material 2,000 2,600

Amount paid for sports material during the year was Rs.19,000

Comprehensive Problems:
Q 6:
From the following particulars of M/s. Jalaram Charity Hospital, prepare Income & Expenditure A/c
and the Balance Sheet as on 31st March 2019.
Receipts Rs. Payments Rs.
To Cash in hand 1.4.2018 7,130 By Medicines 30,590
To Subscriptions 47,996 By Doctor’s Honorarium 9,000
To Donations 14,500 By salaries 27,500
To Interest on Bank Fixed Deposit @ 7% p.a. 7,000 By Petty expenses 461
for full year
By Equipments 15,000
To charity show proceeds 10,450 By charity show expenses 750
By Cash in hand 31.3.2019 3,775
87,076 87,076
5
 Additional information: 1.4.2018Rs. 31.3.2019Rs.

Subscription due 240 280

Subscription received in advance 64 100

Stock of medicines 8810 9740

Estimated value of equipment 21200 31600

Building (Cost less depreciation)

40000 38000

Q 7:
Prepare Income & Expenditure A/c & Balance Sheet of Leo Club Mumbai for the yr. ended 31 st Dec.
2019 from the following:
Receipts & Payments A/c
(for the year ended 31st December, 2019)
Receipts Rs. Payments Rs.
Cash in hand b/d 4500 Salaries (11 months) 1100
Subscriptions: 2018 – 100 Tournament exp. 1600
2019- 2400
2020 - 200 2700
Investments 1000
Furniture 400
Sale of old furniture (Costing Rs.200) 140 Stationery 1200
Tournament Receipts 2000 Sports expenses 15000
Sports Fund 10000 Misc. expenses 200
Donations for Sports 3000 Rent paid up-to Feb. 2020 1400
Cash in hand 440
22340 22340

The club has 300 members each paying an annual subscription of Rs.10. Rs.70 are still outstanding for
the year 2018. In 2018, 10 members had paid their subscription for 2019 in advance. Stock of
stationery in 2018 was Rs.100 & in 2019 Rs.140.
On 1-1-2019, club owned Land & Building valued at Rs.20,000& furniture of Rs.1300. Interest accrued
on investment @6% p.a. for 3 months.

Q 8 On the basis of the information given below, calculate the amount of stationery debited to income
and Expenditure account of Raman Health Club for the year ended31st March 2020:
Particulars 1st April 2019 31st
Rs March2020
Rs
Stock of Stationery 80,000 60,000
Creditors for Stationery 90,000 1,10,000
st
Stationery purchased during the year ended 31 March2020 Rs 4,70,000
Outstanding Subscription or Subscription Receivable 92,000 1,26,000
Advance Subscriptions 60,000 80,000

Subscription received during the year ended 31st March 2020 Rs 6,40,000

6
Q 9.Calculatetheamountofsubscriptionsoutstandingfromthefollowinginformationforthe
year ending 2018-19:
A club has 375 members each paying an annual subscription of Rs.1,000. Subscriptions
outstanding on 31st March 2018 ………………… 60,000
Subscriptions received in advance on 31st March 2019 ………………. 45,000 Subscription
received in advance on 31st March 2018 ………………… 18,000
The Receipt and Payment Account showed a sum of Rs.3,97,500 received as
subscriptions.

Q. 10 Following is the Receipt and Payment Account of You Bee Club for the year ended 31st
December, 2019:
Receipts Rs. Payments Rs.
To Balance b/d 15,000 By Salaries 16,000
To Subscriptions: By Office Expenses 3,500
2018 6,000 By Sports Equipment 34,000
2019 35,000 By Telephone Charges 2,400
To Donations 5,000 By Electricity Charges 3,200
To Entrance Fees 8,000 By Travelling Expenses 6,500
By Balance c/d 3,400
69,000 69,000

Additional Information:
(a) Outstanding Salaries Rs. 4,000.
(b) Outstanding Subscription for 2019 Rs. 5,500.
(c) Depreciate Sports Equipment by 25%.
Prepare Income and Expenditure Account of the Club from the above particulars.
Q 11Following is the Receipts and Payments Account of Star Club for the year ended 31st March 2013:

Receipts Amount Payments Amount

Rs. Rs.
Balance b/d 4,400 Salaries 18,200
Subscriptions 46,100 Rent 15,000
Interest 2,500 Printing and 7,300
Stationery
Tournament Fund 12,000 Expenses on Charity 16,100
Show
Donation 6,000 Tournament Expenses 7,500
Donation for Building 20,000 Investments Purchased 10,000
Receipt from advertisement in the year 5,200 Furniture 6,000
book
Balance c/d 16,100

96,200 96,200

Subscriptions outstanding on 31st March 2012 were Rs. 4,500 and Investments valued Rs. 15,000.
Prepare Income and Expenditure A/c for the year ended 31stMarch, 2013 depreciation furniture by
10%.

7
PARTNERSHIP FUNDAMENTALS:CHANGE IN PROFIT SHARING RATIO , VALUATION
OF GOODWILL.
Questions carrying 1mark each
1 State any two occasions when reconstitution of a partnership firm takes place. 1

2 The partnership deed is silent on payment of salary to partners. Amita a partner claim that she 1
manages the business, she should get monthly salary of rupees 10,000. Is she entitled for the
salary?give reason.
3 Why is value of goodwill ascertained when a firm is reconstituted. 1
4 A partnership deed provides for interest on capital but there was loss instead of profit during 1
the year 2019- 2020. At what rate will be the interest on capital be allowed.
5 What are super profits? 1
6. X, Y and Z are sharing profits and losses in the ratio of 5:3:2. With effect from 1st April,2015 1
they decide to share the future profits and losses in the ratio of 5:2:3. Calculate each partners’
gain or sacrifice due to change in the ratio.
7 Chander and Suman are partners in a firm. Without a partnership deed. Chander’s capital is 1
Rs. 10000 and Suman’s capital is Rs. 14000. Chander has advanced the loan of Rs. 5000 and
claims interest @ 12% p.a. on it. State with reason whether his claim is valid or not.
8 Give two circumstances under which fixed capital of the partner may change. 1
9 Interest on capital will be paid to the partners if provided for in the partnership deed but only 1
out of
a) Profit
b) Reserves
c) Accumulated profits
d) Goodwill
10 A group of 40 people wants to form a partnership firm. They want your advice regarding the 1
the maximum number of persons that can be there in the partnership firm and the name of the
act under whose provision it is given.
11 In the absence of a partnership deed, what is the the ratio in which the profits of a firm are 1
divided among the partners?
12 X and Y shared profits and losses in the ratio of 3:2. With effect from 1st April,2015 they 1
agreed to share profits equally. The goodwill of the firm was valued at Rs. 60000.
The necessary single adjustment entry will be
(a) Dr. Y and Cr X with Rs. 6000 (b) Dr. X and Cr Y with Rs. 6000 (c) Dr X and Cr. Y with
Rs. 600 (d) Dr. Y and Cr X with Rs. 600
13 A, B C were in the partnership sharing profit in the ratio of 4: 3 :1. The partners agreed-to 1
share future profits in the ratio of 5:4:3. Calculate each partners gain or sacrifice due to change
in ratio.
14 The average profits of a firm is rupees 48000. The total assets of the firm are valued at Rs 1
800000. Value of other liabilities is rupees 500000. Average rate of return in the same
business is 12%.
Calculate goodwill from capitalisation of average profit method.

Interest on partners drawing under fluctuating capital account is debited to 1

15 (a) Partners capital account (b) Profit and loss account (c) Drawing account (d) None of these

8
Questions carrying 3-4 marks each
1 P, Q and R are partners in a firm. Their capital accounts stood at Rs.30,000, Rs.15,000 and 4
Rs.15,000 respectively on 1stApril,2015.
As per the provision of the deed: (1) R was to be allowed a remuneration of Rs.3,000 per
annum, (2) Interest @5% p.a. was to be provided on capital and Profits were to be divided in
the ratio of 2:2:1. Ignoring the above terms, net profit of Rs.18,000 for the year ended
31stMarch,2016 was divided among the three partners equally.
Pass an adjustment entry to rectify the error. Show the working clearly
2 Mona, Nisha and Priyanka were partners sharing profits and losses equally. Their respective 3
capitals wereRs.30,000, Rs.20,000 andRs.10,000. After closing the accounts for the year 2019
it was discovered that the interest on capital at the rate 6% p.a. was omitted before distributing
the profits. Instead of changing the audited balance sheet it was decided to pass a single
adjusting entry in the beginning of the year, so that the accounts of the previous years can be
rectified. Pass the journal entry and show the working notes
3 Ram, Shyam, Ghanshyam and Radheshyam are partners sharing profits and losses on the ratio 4
of 4:3:3:2. Their respective fixed capitals on 31st March, 2016 were Rs. 1,20,000.
1,80,000,2,40,000 and Rs. 1,80,000 respectively. After preparing the final accounts for the year
ended 31st March, 2016, it was discovered that interest on capital @ 12% per annum was not
allowed and interest on drawings amounting to Rs.. 4,000, Rs. 5,000, Rs. 3,000 and Rs. 2,400
respectively was also not charged.Pass the necessary adjustment journal entry showing your
working clearly.
4. Ravi and Mohan were partner in a firm sharing profits in the ratio of 7:5. Their respective fixed 4
capitals were Ravi Rs. 10,00,000 and Mohan Rs. 7,00,000. The partnership deed provided for
the following:-
(i) Interest on capital @ 12% p.a.
(ii) Ravi’s salary Rs. 6000 per month and Mohan’s salary Rs. 60000 per year. The profit for the
year ended 31-03-2016 was Rs. 5,04,000 which was distributed equally without providing for
the above. Pass an adjustment entry.

5 Sharma and Gupta decided to start a partnership firm to manufacture low cost jute bags as 3
plastic bags were creating many environmental problems. They contributed capitals of
1,00,000 and 50,000 on 1st April, 2015 for this. Sharma expressed his willingness to admit
Shakti as a partner without capital, who is specially abled but a very creative and intelligent
friend of his. Gupta agreed to this. The terms of partnership were as follows :
i. Sharma, Gupta and Shakti will share profits in the ratio of 2 : 2 : 1.
ii. Interest on capital will be provided @ 6% p.a.

Due to shortage of capital, Sharma contributed Rs. 25,000 on 30th September, 2015 and Gupta
contributed 10,000 on 1st January, 2016 as additional capital. The profit of the firm for the
year ended 31st March, 2016 was Rs. 1,68,900.
a) Prepare Profit and Loss Appropriation Account for the year ending 31st March,
2016
6 A , and B are partners sharing profit in the ratio 3:2 with capitals of Rs. 5,00,000 and Rs. 3
3,00,000 respectively. Interest on capital is agreed @ 6% p.a. B is to be allowed an annual
salary of Rs.25,000. During 2015 the profits of the year prior to calculation of interest on
capital but after charging B’s salary amounted to Rs.1,25,000 .A provision of 5% of the profits
is to be made in respect of managers commission.
Prepare Profit and loss Appropriation account.
9
7 A business has earned average profit of Rs. 100000. During the last few years.and normal rate 4
of return in similar business is 10%. Find out the value of Goodwill by
(i) Capitalisation of super profit method
(ii) Super profit method if the goodwill is valued at 3 years purchase of super profit.
Assets of the business were Rs. 1000000 and its external liabilities Rs. 180000
8 Mona, Nisha and Priyanka are partners in affirm. They contributed Rs 50,000 each as capital 4
three years ago. At that time Priyanka agreed to look after the business as Mona and Nisha were
busy. The profits for the past three years were Rs 15,000, Rs25,000 and Rs50,000 respectively.
While going through the books of accounts;Mona noticed that the profit had been distributed in
the ratio of1:1:2, when she enquired from Priyanka about this, Priyanka answered and that since
she looked after the business she should get more profit. Mona disagreed and it was decided to
distribute profit equally respectively for the last three years.
(a) You are required to make necessary corrections in the books of accounts of Mona,
Nisha and Priyanka by passing an adjustment entry

A and B were partners sharing ratio 3:2.they admitted C for 1/5th share in firm .C is guaranteed
9. a minimum profit of 2,00,000 for the year any deficiency in C’S share is to be borne by A and
B in the ratio of 4:1 .LOSS for the year was 1,00,000.PASS NECESSARY JOURNAL
ENTRIES
Q A, B and C were partners in the ratio of 5:4:1. On 31st Dec. 2006 their balance sheet showed a
10 reserve fund of Rs. 65,000, P&L A/C (Loss) of Rs. 45,000. On 1st January, 2007, the partners
decided to change their profit sharing ratio to 9:6:5. For this purpose goodwill was valued at Rs.
1,50,000.
The partners do not want to distribute reserves and losses and also do not want to record
goodwill.
You are required to pass single journal entry for the above.

Questions carrying 6 marks each

1 Anwar, Bisvas and Divya are partners in a firm. Their capital accounts stood at 6
Rs.8,00,000,Rs.6,00,000 andRs.4,00,000 respectively on 1st april,2015. They shared profits and
losses in the ratio of 3:2:1 respectively. Partners are entitled to interest on Capital @ 6% per
annum and salary to Bisvas and Divya @Rs.4,000 per month andRs.6,000 per quarter
respectively as per the provisions of partnership deed. Biswas’s share of profit including interest
on capital but excluding salary is guaranteed at a minimum of Rs.82,000 p.a. Any deficiency
arising on that account shall be met by Divya. The profits for the year ended 31 st march,2016
amounted toRs.3,12,000. Prepare profit and loss appropriation account and journal entries for the
year ended 31st march, 2016.
2 X, Y and Z were partners in a firm. Their capitals on 01.04.2015 were; X Rs. 2,00,000 , Y Rs. 6
2,50,000 and Z Rs. 3,00,000. the partnership deed provided for the following;
(i) they will share profits in the ratio of 2 : 3 : 3.
(ii) X will be allowed a salary of Rs. 12,000 p.a.
(iii) Interest on capital will be allowed @ 12% p.a.
During the year X withdrew Rs. 28,000 Y Rs. 30,000 and Z Rs. 18,000. for the year ended
31.3.2016 the firm earned a profit of Rs. 5,00,000.
Prepare profit and loss Appropriation account and partners capital accounts.
3 ANIL, SANDHYA and NEETU are partners in a firm on 1stapril 2015 the balance in their 6
capital accounts stood at Rs.14,00,000, Rs.6,00,000 and Rs.4,00,000 respectively. They shared
profits in the proportion of 7:3:2 respectively. Partners are entitled to interest on capital @ 6%

10
 p.a. and salary to Sandhya @ Rs.50,000 p.a. and a commission of Rs.3,000 per month to Neetu
as per the provision of the partnership deed. Sandhya share of profit (excluding int. on capital) is
guaranteed at not less than Rs.1,70,000 p.a. Neetu’s shares of profit (including int. on capital but
excluding salary) is guaranteed at not less than Rs. 1,50,000 p.a. any deficiency arising on that
account shall be net by ANIL. The profit of firm for the year ended 31st march 2013 amounted to
Rs.9,50,000. Prepare profit and loss appropriation account and necessary journal entries for the
year ended 31st march 2016.
4 Anand and Sonu were childhood friends and colleagues in a company who were thinking of 6
st
starting something of their own someday. On 1 Jan, 2015 they thought of starting a stationery
depot for the financially backward children of their area. They also admitted Manoj a differently
abled educated youth who was unemployed as a partner of their firm without any capital
contribution. Sonu also approached RohitKaul from Jammu, who was also eager to start
something of this sort having lot of funds at his disposal, and persuaded him to join them.

The following terms where agreed upon:

i) Anand, Sonu and Rohit will contribute 30,000; 50,000 and 400,000 respectively as
capital.
ii) Profit will be shared equally.
iii) Interest on capital will be allowed @ 5% p.a.
The Profits of the firm for the year ended 31st Dec 2015 were 50,000.

Prepare Profit & Loss Appropriation Account and capital account of the firm for the year

5 (a) X, Y and Z were sharing profits and losses in the ratio of 5:3:2. They decided to share future 3
profits and losses in the ratio of 2:3:5 with effect from 1st April, 2015. They decided to record the
effect of the following, without affecting their book values:
(i) Profit and Loss Account Rs.24,000
(ii) Advertisement Suspense Account Rs.12,000
Give adjustment entry for the above items. 3
(b) On 1st April,2014 an existing firm had assets of Rs. 75000 including cash of Rs. 5000 The
partners capital account showed a balance of Rs.60000 and the reserve constituted the rest.
If the normal rate of return is 10% and goodwill of the firm is valued at Rs.24000 at four years
purchase of super profit find the average profit of the firm.

6 Fill in the missing figure in following accounts: 6

Profit & Loss Account
Dr. For the year ended 31st March 2015 Cr.

Particulars Rs. Particulars Rs.

To Managers commission By profit for the year ………………
10% 12,000
To net profit transfer to:
Profit & Loss ……………
Appropriation a/c
…………… …………………

11
 Profit & Loss Appropriation Account
Dr. For the year ended 31st March 2015 Cr.

Particulars Rs. Particulars Rs.

To Interest on Capital @ 8% p.a. By profit & -------------------
A 24,000 loss Account
B 16,000 ……………

To salary to B ……………
To profit transfer to
Capital Accounts: Rs.
A 3/5 …………….
B 2/5 20,000 ……………

……………

Partners Capital Account

Dr. For the year ended 31st March 2015 Cr.

Particulars (A) Rs. (B) Rs. Particulars (A) Rs. (B)Rs.

To Balance ………….. ……………… By Balance b/d …………… ……........
c/d By Interest on ……………. ……………
Capital ……………. ……………
By Salary …………… ……………
By P&L
………….. ……………… Appropriation ……………. ……………
a/c
7 A,B and c were partners in a firm having capitals of 60,000, Rs 60,000 and Rs 80,000 6
respectively. Their current account balance were A: Rs 10,000, B: Rs 5,000 and C: Rs 2,000(Dr).
According to the partnership deed the partners were entitled to interest on capital @5% p.a. C
being the working partner was also entitled to a salary of Rs 6,000 p.a. The profits were to be
divided as follows:
(a) The first Rs 20,000 in proportion to their capital.
(b) Next Rs 30,000 in the ratio of 5:3:2.
(c) Remaining profits to be shared equally.
The firm made a profit of Rs 1,56,000 before charging any of the above items. Prepare the profit
and loss appropriation account and pass necessary journal entry.

12
ADMISSION OF A PARTNER
1 MARK QUESTIONS

Q1. How can be a new partner admitted? 1

Q2. Give the two main rights acquired by the new partner. 1
Q3. Why is sacrificing ratio calculated? 1
Q4. Unless given otherwise, what will be the ratio of sacrificing of the old partner in the case of 1
admission of a new partner?
Q5. Under what circumstances premium for goodwill paid by the incoming partner would never 1
be recorded in the books of account?
Q6. Pawan and Jayshree are partner. Bindu is admitted for 1/4th share. What is the ratio in which 1
Pawan and Jyayshree will sacrifice their share in favour of Bindu?
Q7 A,B qnd C word partners in the firm sharing profit in the ratio of 3:2:1. They admitted D as a
new partner for 1/8thshare in the profitwhich he acquired 1/16th from B and 1/16 th from C.
Calculate the new profit sharing ratio of A,B,CandD.
Q8 Amit and Bina partners in in a farm sharing profit and loss in the ratio of 3:1. Chaman was
admitted as A new partner for 1/6 share in the profit. Chaman acquired 2/5th share from
Amit. How much share did Chaman acquire from Bina?
Q9 General reserve at the time of admission of a partner is transfer to_________account of
of________ partners.
Q1 Accumulated profits and losses at the time of admission of a partner are to be-transferred to
0 revaluation account. (True/ false)
3 MARKS QUESTIONS
Q1 A and B are partners in a firm sharing profits in the ratio of 3:1. They admitted C as a new 3
. partner. The New profit- sharing ratio of A, B and C will be 2:1:1. C brought Rs.2,50,000 for
his capital but could not bring his share of goodwill Rs.10,000 in cash. Pass necessary journal
entries in the books of the firm for the amount of capital brought in by C and for the
treatment of goodwill.
Q2 The capital of A and B are Rs. 50,000 and Rs. 40,000. To Increase the Capital base of the 3
firm to Rs. 1, 50,000, they admit C to join the firm; C is required to Pay a sum of Rs. 70,000,
what is the amount of premium of goodwill?
Q3. Saloni and Shrishti were partners in a firm sharing profits in the ratio of 7:3. Their capitals 3
were Rs.2,00,000 and Rs. 1,50,000 respectively. They admitted Aditi on 1st April, 2013 as a
new partner for 1/6th share in future profits. Aditi brought Rs.1,00,000 as her capital.
Calculate the value of goodwill of the firm and record necessary entries for the above
transaction on Aditi’s admission.
Q Q EK and FK were partners in a firm sharing profits in the ratio of 3 : 1. They admitted GK as a 3
new partner on 1.3.2005 for 1/3rd share. It was decided that EK, FK and GK will share future
profits equally. GK brought Rs.50,000 in cash and Machinery worth Rs.70,000 for his share
of premium for goodwill. Showing your working clearly, give necessary entries.
Q 5 The average profits for last 5 years of a firm are Rs. 20,000 and goodwill has been worked 3
out Rs. 24,000 calculated at 3 years purchase of super profits. Calculate the amount of capital
employed assuming the normal rate of interest is 8 %.

13
Q MARKS QUESTIONS
Q1. A and B were sharing profits in the ratio of 3 : 2. They decided to admit C into the 4
partnership for 1/6th share of the future profits. Goodwill, valued at 4 times the average super
profits of the firm, was Rs.18,000. The firm had Assets worth Rs.15,00,000 and Liabilities
Rs.12,00,000. The normal earning capacity of such firms is expected to be 10% p.a. Find the
Average Profits/Actual Profits earned by the firm during the last 4 years.
Q2. X and Y are partners in a firm sharing profits in the ratio of 4:3. On 1st January they admitted 4
Z as a new partner. On the date of Z’s admission the balance sheet of X and Y showed a
General Reserve of Rs.1,40,000 and a debit balance of Rs.14,000 in Profit and Loss Account.
Give journal entries for the treatment of these items on Z’s admission.
Q3. Give Journal entries for the following on the admission of Vinod, as a partner in the Journal 4
of Amit and Bobby:
(a) Unrecorded Investments worth Rs.20,000
(b) Unrecorded Liabilities towards suppliers for Rs.6,000
6 MARKS QUESTIONS
Q 1 X and Y are partners in a firm sharing profits in the ratio of 3:2. They admitted Z as a new 6
partner for 1/5th share in future profits. At the time of admission of Z, Investment appeared at
Rs. 1,00,000 in the Balance Sheet. Half of the Investments to be taken over by X and Y in
their profit sharing ratio at book value. Remaining investments were valued at Rs. 62,500.
One month after Z’s admission, X and Y decided to allow a salary of Rs. 50,000 per annum
to Z for the extra efforts and time devoted by him to the business.
a. Pass necessary journal entries.
b. Calculate new profit sharing ratio.

Q A, B and C are partners in a firm sharing profits and losses in the ratio of 3:2:1. Their 6
2. Balance Sheet as at 31st March, 2013 is as follows:
Balance Sheet
Liabilities (Rs.) Liabilities (Rs)
Sundry Creditors 36000 Cash 14000
Bank Overdraft 20000 Sundry Debtors 50000
Reserve 15000 Less: Provisions. 2500 47500
Capital A/cs : Stock 60000
A 60000 Patents 6000
B 60000 Fixed Assets 98500
C 50000 170000 Goodwill 15000

241000 241000
th
On Ist April,2013, D is admitted into the firm with 1/4 share in the profits, which he gets 1/8
from A and 1/8the from B. Other terms of agreement are as under:
a. D will introduce Rs.60000 as his capital and pay Rs.18000 as his share of goodwill.
b. 20% of the reserve is to remain as a provision against bad and doubtful debts.
c. A liability to the extent of Rs.1000 to be created in respect of a claim for damages against
the firm.
d. An item of Rs.4000 included in sundry creditors is not likely to be claimed.
e. Stock is to be reduced by 30% and patents to be written off in full.
f. A is to pay off the Bank Overdraft.

14
 After making the above adjustments the capital accounts of the old partners be adjusted on
the basis of D’s Capital to his share in the business, i.e., actual cash to be paid off to, or
brought in by, the old partners, as the case may be.
Prepare necessary Journal entries for above transactions.
Q3 A. A and B are partnersshare profit in the ratio Of 3:2 with capital of Rs. 80000 and Rs. 6
50,000 respectively. They admit C as partner with 1/5th share in the profits of the firm. C
brings Rs. 60,,000 as his share of capital. Give journal entry to record goodwill on C’s
admission.
B. Q.10 A and B were partners sharing profits in the ratio of 3:2. A surrenders 1/6th of his
share and B surrenders 1/4th of his share in favour of C, a new partner. What is the new ratio
and the sacrificing ratio
8 MARKS QUESTIONS
Q1. Rajat and Ravi are partners in a firm Sharing profit and losses in the ratio of 7:3 their balance 8
sheet as at 31st march ,2007 is as follows-

Liabilities Amount Asset Amount

Creditor 60,000 Cash 36000
Reserve 10,000 Bank 90,000
Capital Debtors 44,000
Rajat 1,00,000 Furniture 30,000
Ravi 80,000 Stock 50,000

2,50,000 2,50,000
st
On 1 April ,2007 they admit Rohan on the following tem:-
(i) Goodwill is valued at Rs 40,000 and Rohan is to be bring in the necessary amount in
cash as premium for goodwill and Rs 60,000 as capital for ¼ share in profits.
(ii) Stock is to be reduced by 40% and furniture is to be reduced to 60%
Capital of partners shall be proportionate to their profit sharing ratio taking Rohan’s capital
as base. Adjustments of capital to be made by cash.
Q2. A and B are partners in a firm sharing profits and losses in the ratio of 3:2. On 31st March, 8
2009, their Balance Sheet was as under:
Liabilities (Rs.) Liabilities (Rs)
Creditors 70,000 Bank 40000
Capital A/cs : Debtor 120000
A 150000 stock 60000
B 80000 2,30,000 Furniture 50000
goodwill 30000

3,00,000 3,00,000
On the above date C is admitted as a partner. A surrendered 1/6 of his share and B 1/3rd of
th

his share in favour of C. Goodwill is valued at Rs.120000. C brings in only ½ of his share of
goodwill in cash and Rs.100000 as his capital. Following adjustment are agreed upon:
i. Stock is to be reduced to Rs.56000 and furniture by Rs.5000
ii. There is an unrecorded asset worth Rs.20000.
iii. One month’s rent of Rs.15000 is outstanding.
iv. A creditor for goods purchased for Rs.10000 had been omitted to be recorded
although the goods had been correctly included in stock.
15
 v. Insurance premium amounting to Rs.8000 was debited to P&L A/c, of which Rs.2000
is related to the period after 31st March, 2009.
You are required to prepare revaluation account, partners’ capital account and the balance
sheet of the new firm. Also calculate the new profit sharing ratio.
Q3. A, B and C are partners in a firm sharing profits and losses in the ratio of 3:2:1. Their 8
Balance Sheet as at 31st March, 2013 is as follows:
Balance Sheet
Liabilities (Rs.) Liabilities (Rs)
Sundry Creditors 36000 Cash 14000
Bank Overdraft 20000 Sundry Debtors 50000
Reserve 15000 Less: Provisions 2500 47500
Capital A/cs : Stock 60000
A 60000 Patents 6000
B 60000 Fixed Assets 98500
C 50000 170000 Goodwill 15000

241000 241000
th
On Ist April,2013, D is admitted into the firm with 1/4 share in the profits, which he gets 1/8
from A and 1/8the from B. Other terms of agreement are as under:
a. D will introduce Rs.60000 as his capital and pay Rs.18000 as his share of goodwill.
b. 20% of the reserve is to remain as a provision against bad and doubtful debts.
c. A liability to the extent of Rs.1000 to be created in respect of a claim for damages against
the firm.
d. An item of Rs.4000 included in sundry creditors is not likely to be claimed.
e. Stock is to be reduced by 30% and patents to be written off in full.
f. A is to pay off the Bank Overdraft.
After making the above adjustments the capital accounts of the old partners be adjusted on
the basis of D’s Capital to his share in the business, i.e., actual cash to be paid off to, or
brought in by, the old partners, as the case may be.
Prepare Revaluation Account, Partners’ Capital Accounts and Balance Sheet of the new firm.

RETIREMENT AND DEATH OF A PARTNER

Note 1.Question from 1 to 12 carry 1 marks
2. .Question from 12 to 19 carry 3,4,6 marks
3 .Question from 20 to 25 carry 6 to 8 marks

1. Gaining Ratio means the ratio by which the share in profit stands increased. It is computed by
deducting old ratio from the ------------------------
2. Give the Journal entry to distribute the ‘Workmen Compensation Reserve’ of
Rs.60,000 at the time of retirement of Vinod, when there is no claim against it. There are
three partners.
3. Define the term sacrificing partner and gaining partner.
4. Calculation of sharing of profit upto date of death will be calculated on the basis of-

A Yearly basis
B Time basis
C Turnover basis
D Both Time basis and Turnover basis

16
5. Dinkar, NavitaandVani were partners sharing profits and losses in the ratio of 3:2:1
Navita died on 30thJune,2017.Her share of profit for the intervening period was based on the
sales during that period ,which were Rs.6,00,000. The rate of profit during the past four years
had been 10% on sales. The firm closes its books on 31stMarch every year.
6. If the retiring partner is not paid the full amounts due to him immediately on
retirement,how should his Capital Account be shown in subsequent Balance Sheet.
7. A,B and C are partners with profit sharing ratio of 4:3:2.B retired and goodwill was valued
Rs1,08,000.If A&C share profits in 5:3,find out the goodwill shared by A and C in favour of B.
(a) Rs 22,500 and Rs13,500
(b) Rs16,500 and Rs19,500
(c) Rs67,500 and Rs40,500
(d) Rs19,500 and Rs16,500
8. A, B and C are equal partners in a firm whose books are closed on 31st December every year. A
died on 31.03.1991 and according to agreement his share of profit upto date of death is to be calculated
on the basis of average profits of last 3 years.
Net profits for the last 3 years were Rs. 8,000, Rs. 1000 and Rs. 17,000. Calculate A’s share of profit
and pass necessary journal entry
9. Ram, Mohan and Sohan are partneres in a firm sharing profits in the ratio of 2:2:1. Sohan retires
and the Balance sheet of the firm on that date showed the following balances:
General Reserve Rs. 60,000
Profit and Loss A/c Rs. 15,000
Work men’s compensation fund Rs 10,000.
Pass journal entries for the above balances
10. A, B, C are partners sharing profits in the ratio of 3:2:1. C dies on 30 June 2011. Accounts are
closed on 31st March every year. Sales for th year ending 31st March 2011 was Rs 6,00,000. Sales
form1st April 2011 to 30th June 2011 was Rs 2,40,000. Hte profit for the year ended 31st March 2011
was Rs 30,000.
11. A, B and C are partners sharing profits in the ratio of 5:2:1. If the new ratio on the retirement of
A is 3:2, what will be the gaining ratio?
a. 11:14
b. 3:2
c. 2:3
d. 14:11

12. Retiring partner is compensated for parting with the firm’s future in favour of remaining
partners. The remaining partners contribute to such compensation amount in :
a. Gaining Ratio
b. Capital Ratio
c. Sacrificing Ratio
d. Profit sharing Ratio

13. Alia, Karan and Shilpa were partners in a firm sharing profits in the ratio of 5 : 3 : 2. Goodwill
appeared in their books at a value of Rs. 60,000 and general reserve at Rs. 20,000. Karan decided to
retire from the firm. On the date of his retirement goodwill of the firm was valued at Rs. 2,40,000. The
new profit sharing ratio decided among Alia and Shilpa was 2 : 3. Record necessary Journal Entries on
Karan’s retirement

17
14. Varun, Arun and Karan were partners in a firm sharing profits in the ratio of 2:2:1. The firm
closes its books on 31st March every year. On 31-12-2015 Karan died. On that date his Capital account
showed a credit balance of Rs.3,80,000 and Goodwill of the firm was valued at Rs.1,20,000. There was
a debit balance of Rs. 50,000 in the profit and loss account. Karan’s share of profit in the year of his
death was to be calculated on the basis of the average profit of last five years. The average profit of last
five years was Rs. 75,000. Pass necessary journal entries in the books of the firm on Karan’s death.

15. Radhey, Krishna & Gopal are partners sharing profits and losses in the ratio of 3:2:1. On 1 st
April, 2013 their capital balances were Radhey - ₹ 1,50,000; Krishna - ₹1,50,000; and Gopal -
₹1,00,000. Gopal retires on the same date and Goodwill is valued at ₹ 1,80,000. Radhey and
Krishna decided to share profits or losses in the ratio of 3:1. Goodwill already appears in the books at
₹ 48,000 along with credit balance of ₹ 18,000 in General Reserve Account. Gopal requested the
firm to pay off his dues immediately as he needs money for his daughter’s marriage. The firm accepted
his request. Calculate amount payable to Gopal on his retirement.

16. Dev, Swati and Sanskar were partners in a firm sharing profits in the ratio of 2 : 2 : 1. On 31st
March, 2014 their balance sheet was as follows Balance Sheet as at 31st March 2 14

Liabilties Amt(Rs) Assets Amt(Rs)

TradePayables 17,000 Building 1,00,000
BankLoan 13,000 Inventory 20,000
CapitalA/cs TradeReceivables 23,000
Dev 77,000 Cash 40,000
Swati 87,000 ProfitandLossA/c 57,000
Sanskar 46,000 2,10,000
2,40,000 2,40,000
th
On 30 June, 2014 Dev died. According to partnership agreement, Dev was entitled to
interest on capital @ 12% per annum. His share of profit till the date of his death was to
be calculated on the basis of the average profits of last four years. The profits of the last four
years were:
Years Profit(Rs)
2010-2011 2,04,000
2011-2012 1,80,000
2012-2013 90,000
2013-14 loss (57,000)
On 1st April, 2014, Dev withdrew Rs 15,000 to pay for his medical bills. Prepare Dev’s account to be
presented to his executors

17. Ashok, Babu and Chetanwerepartnersinafirmsharingprofitsintheratioof4:3:3 The firm

closes itsbookson31stMarcheveryyear.On31stDecember, 2016, Ashok died. The partnership
deed provided that on the death of a partner, his executors will be entitled to the following
i. Balance in his capital account. On1stApril, 2016, there was a balance ofRs 90,000 in
Ashok’s capital account.
ii. Interestoncapital@12%perannum.

18
iii. Hisshare in the profits of the firm in the year of his death will be calculated on the
basis of rate of net profit on sales of the previous year,which was 25%.The sales of the firm
till 30th December, 2016 were Rs4,00,000.
iv. His share in the goodwill of the firm.The goodwill of the firm on Ashok’sdeath
was valued at Rs4,50,000. The partnership deed also provided for the following deductions
from the amount payable to the executor of the deceased partner.
v. His drawings in the year of his death. Ashok’s drawings till 31stDecember,2016
were Rs15,000.
vi. Interest on drawing @12%per annum which was calculated as Rs 1,500.
The accountant of the firm prepared Ashok’scapital account to be presented to the executor of
Ashok but in a hurry he left it incomplete. Ashok’scapital account as prepared by the
firm’saccountant is given below

Dr Cr

Date Particulars Amt. (Rs.) Date Particulars Amt. (Rs.)

2016 2016

Dec31 ........................... 15,000 Apr1 ................. 90,000

Dec31 .......................... ..................... Dec31 ................. 8,100

Dec31 .......................... ..................... Dec31 ................. 40,000

Dec31 ................. 90,000

Dec31 ................. 90,000

3,18,100 3,18,100
You are required to complete Ashok’scapital account.
18. Lalit,Madhur and Neena were partners sharing profits as 3:2:5 On March
31st,2013 their Balance Sheet was as follows

Liabilities Amount Assets Amount

Capitals: Goodwill 300000
LalitMadhurNeena 300000 Land and building 500000
Creditors 200000 Machinery 170000
GeneraL rESERVE 500000 stock 30000
Loan from seth 750000 Debtors 120000
100000 Cash 45000
50000 Profit and Loss A/c 600000

1225000 1225000
On 14 th march Madhur di ed.
The partner ship ded provided that on t he death of a partner the executor of the
deceas ed partner is entitled to
1) Balance in capital A/c

19
2) Share in profit up to death on the basis of last years profit
3) His share in orofit /loss on revaluation of assets and liabilities as follows
Land and building was to be appreciated by Rs 120000
Machinery was to be depreciated to Rs 135,000 and stock to 25,000.
A provision of 2.5% for bad and doubtful debts was to be created on debtors.
4) The net amount payable to Madhurs executors was transferred to his Loan A/c.

Prepare RevaluationA/C,Partner’s capital Accounts and Madhur’s Executors A/c .

19 Chinku, Shobha and Nikita were partners in a firm sharing profits and losses in the ratio of 2:2:1.
The firm closes its books on 31st March every year. On 30th September 2014, Nikita died. According to
the provisions of the partnership deed, the legal representatives of Nikita were entitled to the following
in the event of death:
i) Capital as per last balance sheet date
ii) Interest on capital @ 6% p.a.
iii) Her share of profits to the date of death calculated on the basis of the average profits of the last
four years.
iv) Her share of goodwill to be determined on the basis of three years’ purchase of the average
profits of last four years. The profits of last four years were:
YEAR PROFITS
2010-11 30000
2011-12 50000
2012-13 40000
2013-14 60000
The balance in Nikita’s capital account on 31-3-14 was Rs. 60000 and she had withdrawn Rs. 10000 till
the date of her death. Interest on her drawings was to be charged @12% p.a.
Prepare Nikita’s capital account to be rendered to her executors.

20 .The Balance Sheet of X, Y and Z who are sharing profits in the ratio of 2:3:1, as at 31st March,
2013 is given below

Liabilities ₹ Assets ₹
X’s Capital A/c 2,00,000 Goodwill 24,000
Y’s Capital A/c 4,00,000 Land and Building 5,00,000
Z’s Capital A/c 6,00,000 Investments (M.V.92,000) 1,00,000
Workmen’s compensation Fund 40,000 Stock 1,60,000
Investment fluctuation Fund 20,000 Debtors 6,00,000
Provision for doubtful debts 20,000 Bank 5,92,000
Creditors 7,20,000 Advertising Suspense A/c 24,000
20,00,000 20,00,000
st
Z died on 1 April, 2013 and X & Y decided to share future profits and losses in the ratio of 3:2 and
50% of the amount payable to Z is to be paid immediately and the balance in two equal installments
together with interest @ 10% p.a.
Other information:
(i) Goodwill is to be valued at two years’ purchase of average profits of last three completed years.
The profits were ; 2010-11 ₹90,000; 2011-12 ₹1,80,000 and 2012-13 ₹2,70,000.
(ii) Land and Building was found undervalued by ₹50,000 and stock was found overvalued
₹16,000.
(iii) Provision for doubtful debts is to be made equal to 5% of the debtors.
(iv) Claim on account of Workmen’s compensation is ₹16,000.

20
Prepare revaluation account Partners capital account and Balance Sheet of the new firm

21. X, Y and Z were partners in a firm whose Balance sheet as on 31-03-2012 was as under:
LIABILITIES AMOUN ASSETS AMOUNT
T
Creditors 18240 Cash 16240
General reserve 7500 Debtors 22500
Capitals Stock 26500
X 20000 Furniture 5000
Y 14500
Z 10000
70240 70240
Y Retired on that date. In this connection, it was decided to make the following adjustments:
a) To reduce stock and furniture by 5% and 10% respectively
b) To provide for doubtful debts @5% on debtors.
c) A long dispute with creditors was settled and the firm had to pay Rs. 9050. In anticipation Rs.
6000 have already been included in the sundry creditors by the firm.
d) Goodwill was valued at Rs. 12000
e) To share future profits in the ratio of 5:3
f) Y should be paid off and the entire sum payable to Y shall be brought in by X and Z in such a
way that their capital should be in the profit sharing ratio.

22.Q and R were partners sharing profits in 3:2:1 on 1April,2007,Q retired .On that date Balance
Sheet was as follows

Liabilities Rs. Assets Rs.

General Reserve 12,000 Plant 60,000
Expenses Owing 4,000 Patents 6,000
Bills Payable 10,000 Debtors 19,000
Creditors 20,000 Stock 22,000
Capital A/cs: Cash 1,000
P 24,000
Q 20,000
R 18,000 62,000
1,08,000
1,08,000
The terms were:
Goodwill of the firm be valued at Rs.24,000 and Q’s share of goodwill be adjusted in the accounts of P
and R share the profits and losses in the ratio of 3:2
Expenses owing are to be brought down to Rs. 3000; Plant is to be valued at 10 percent less and Patents
at Rs. 8,000.
The total capital of the new firm will be fixed at Rs. 50,000 to be contributed by partners in profit
sharing ratio.
Prepare Revaluation Account and partners’ Capital accounts to record the above and prepare Balance
sheet after Q’s retirement.

21
23.Akshata, Preeti and Akansha are partners in a firm sharing profits and losses in the ratio of 2:2:3. On
31-3-2015, their Balance Sheet was as follows:
Balance Sheet as at 31-03-2015
Liabilities Amount Assets Amount
Trade Creditors 160000 Land and Building 1000000
Bank overdraft 44000 Machinery 500000
Long term debts 400000 Furniture 700000
Employees Provident Fund 76000 Investment 200000
Capitals Closing Stock 800000
Akshata 1250000 Sundry Debtors 400000
Preeti 800000 Bank 80000
Akansha 1050000 Deferred Revenue 100000
Expenditure

3780000 3780000
On 31-3-2015, Preeti retired from the firmand the remaining partners decided to carry on the business.
It was decided to revalue assets and liabilities as under:
i) Land and building be appreciated by Rs. 240000 and Machinery be depreciated by 10%
ii) 50% investments were taken over by the retiring partner at book value
iii) An old customer, Mansi whose account was written off as bad had promised to pay Rs. 7000 in
full settlememt of a debt of Rs. 10000
iv) Provision for doubtful debts was to be made @5%
v) Market price of closing stock was found Rs. 100000 less than its book value
vi) Goodwill of the firm is valued at Rs. 560000and Preeti’s share of goodwill be adjusted through
capital accounts of continuing partners who agree to share in 3:2 in future.
vii) The total capital of the firm be fixed at Rs. 3200000 which is to be contributed by the
continuing partners in their profit sharing ratio.
viii) Amount due to Preeti was settled by accepting a bill of exchangein her favour payable after 4
months.
Prepare necessary accounts and the Balance Sheet of the new firm

24.Bhavin, Ankit and Kartik were equal partners. Their Balance Sheet as at 31st March 2012 was :
BALANCE SHEET as at 31st March, 2012
Liabilities Amount Assets Amount
(Rs.) (Rs.)
Creditors 60,000 Cash 18,000
Reserve 30,000 Stock 20,000
Profit and Loss A/c 6,000 Furniture 28,000
Capital A/c : Debtors 45,000
Bhavin : 60,000 Less : Provision for
Ankit : 40,000 Bad debts 5,000 40,000
Kartik : 30,000 1,30,000 Land & Building 1,20,000
2,26,000 2,26,000
st
Ankit retired on 1 April, 2012. Bhavin and Kartik decided to continue the business as equal partners
on the following terms:
a) Goodwill of the firm was valued at Rs. 30,000.
b) The Provision for Bad Doubtful debts to be maintained @ 10 % on Debtors.
c) Land and Buildings to be increased to Rs. 1,42,000.
22
d) Furniture to be reduced by Rs. 6,000.
e) Rent outstanding (not provided for as yet) was Rs. 1,500.
Prepare the Revaluation Account, Partners’ Capital Accounts and the Balance Sheet.

25 X, Y and Z are partners in a firm sharing profits in proportion of 1/2, 1/6 and 1/3 respectively. The
Balance Sheet as on April 1, 2014 was as follows:
Liabilities Amount(Rs. ) Assets Amount(Rs. )
Employees Provident Fund 12,000 Freehold Premises 40,000
Sundry Creditors 18,000 Machinery 30,000
General Reserve 12,000 Furniture 12,000
Capitals Stock 22,000
X 30,000 Debtors 20,000
Y 30,000 Less provision for
Z 28,000 doubtful debts 1,000 19,000
Cash 7,000
1,30,000 1,30,000
Z retires from the business and the partners agree that:
(a) Machinery is to be depreciated by 10%.
(b) Provision for bad debts is to be increased to Rs. 1,500.
(c) Furniture was taken over by Z for Rs. 14,000.
(d) Goodwill is valued at Rs. 21,000 on Z’s retirement.
(e) The continuing partners’ have decided to adjust their capitals in their new profit sharing ratio
after retirement of Z. Surplus or deficit if any, in their capital accounts will be adjusted through their
current accounts.
Prepare Revaluation A/c and Partners’ Capital A/c’s.

DISSOLUTION OF PARTNERSHIP FIRM

Question 1 to 9 carry 1 marks
Question 10 to 20 carry 3,4 and 6 marks.
Question 21 to 25 carry 6 to 8 marks
1When an asset is taken over by a partner,why is his capital account debited?

2 Differentiate between dissolution of partnership and partnership firm on the basis of court’s
intervention

3. What shall be the journal entry for unrecorded assets in Realisation A/c.

4. On Dissolution of a firm, a partner paid Rs700 for firm’s realization expenses. Which account will be
debited?
(a) Cash Account
(b) Realisation Account
(c) Capital Account of Partner
(d) Profit &Loss A/C

5. On dissolution of a firm, out of the proceeds received from the sale of assets ……………
Will be paid first of all:
(a)Partner’s Capital
(b)Partner’s Loan to firm
23
( c) Partner’s additional Capital
(d)Outside Creditors

6. In which condition a partnership firm is deemed to be dissolved ?

a. On a partners admission
b. On retirement of a partner
c. On expiry of the period of partnership
d. On loss in partnership
e.
7.At the time of the dissolution of the firm, how undistributed profits such as General
Reserve,Credit Balance of P&L A/C are dealing with?

8.Write any three differences between realisation account and revaluation account.
i. Partners’CapitalAccounts
ii. Partners’loanaccounts
iii. Loanbythespouseofapartner;
Whichaccount(s)willnotbetransferredtoRealisation"Account?

9.The amount of sundry assets transferred to Realisation Account was Rs 80,000. 60% of them
have been sold ata profitof Rs. 2,000.20%of the remaining were sold at a discount of 30% and
remaining were taken over by Ramlal(apartner) at bookvalue.Journalise.

10.State the provisions of Section 48 of the Partnership Act 1932 regarding settlement of
Accounts during the Dissolution of Partnership firm.

11 State any six situations in which the court may order to dissolve a partnership firm.

12 Verma and Sharma are partner sharing profit in the ratio 3 :1 . there balance sheet as on 31/3/2011.
LIABLITIES AMOUNT ASSETS AMOUNT
Capital: Land and building 70000
Verma :120000 Machinery 60000
Sharma:80000 200000 Debtors 80000
Creditor 70000 bank 60000
270000 270000
The firm was dissolved on 1/4/2011 and the assets and liabilities were settled as follows
(i) Creditors of rs, 50000 took over land and building in full settlement of their claim.
(ii) Remaining creditors were paid in cash.
(iii) Machinery was sold at depreciation of 30%.
(iv) Debtors were collected at a cost of rs. 500
(v) Expenses of realisation were Rs. 1700
Pass necessary journal entries for the dissolution of the firm.

13 Pass the necessary Journal entries for the following transactions on the dissolution of
the firm of King and Singh after the various assets (other than cash) and outside
liabilities have been transferred to Realisation Account:
(i) Bank Loan Rs.45,000 was paid
(ii) Stock worth Rs.60,000 was taken over by a partner Singh
(iii) King paid Rs.27,000 to a creditor

24
(IV) A liability not appearing in the books of accounts settled Rs.11,100
(v) Expenses of realisation Rs.2,700 were paid by partner Singh
(vi) Profit on realisation Rs.21,300 was distributed between KIng and Poppy in 7:3 Ratio

14 Pass necessary journal entries for the following transactions at the time of dissolution of the firm.
(a).loan of Rs 10,000 advanced by a partner to the firm on dissolution of the firm.
(b). X, a partner takes over an unrecorded assets (typewriter) atRs.300.
(c). undistributed balance (debit) of P/L accountRs.30,000. The firm has three partners X, Y and Z.
(d). the assets of the firm realized Rs 1,25,000.
(e). Y who undertakes to carry out the dissolution proceedings is paidRs.2,000 for the same.
(f). creditors paid Rs. 28,000 in full settlement of their account ofRs.30,000

15 Journalise the following transactions regarding Realisation expense

a) Realisation expenses amounted to Rs2,500.
b) Realisation expenses amounting to Rs3,000 were paid by Ashok,one of the partners.
c) Realisation expenses Rs2,300 borne by Tarun,personally.
d) Amit,a partner was appointed to realize the assets,at a cost of Rs4,000.
The actual amount of Realisation amounted to Rs3,000

16 X and Y are partners in the firm who decided to dissolve the firm.Assets and Liabilities are
transferred to Realisation account.Pass necessary journal entries—
a. Creditors were Rs1,00,000. They accepted Building valued Rs1,40,000 and paid cash to
the firm Rs40,000
b. Aman,an old customer whose account of Rs1000 was written off as bad in the previous
year paid 40% of the amount.
c. There were 300 shares of Rs10 each in ABCLtd which were acquired for Rs2000
were now valued at Rs6 each. These were taken over by the partners in the profit
sharing ratio.
d. Profit on Realisation Rs42000 was divided among the partners.
e. Land and Building (BookvalueRs1,60,000) was sold for Rs3,00,000 through a broker who
charged 2% commission on the deal
17 E and F are partner in a firm sharing profits in the ratio of 3:2 .there balance sheet on 31.3.2015
Liabilities Amount Assets Amount
Creditors 25000 Building 100000
outstanding Plant 40000
expense 5000 Stock 30000
Capital account debtors 45000
E:90000 cash 25000
F:120000 210000
240000 240000
On the above date the firm was dissolved. Stock was taken over by E at a discount of 10% .F took
over debtors for Rs. 40000.plant was sold for Rs. 30000 and buildings realised Rs. 80000.F arrange to
ply the creditors . E paid outstanding expense. Expense of realisation amounted to Rs. 7500. Prepare
Realisation A/c.

25
18 Ramesh and Umesh were partners in a firm sharing profits in the ratio of their
capitals.On31stMarch,2013,their Balance Sheet was as follows

Liabilities Rs. Assets Rs.

Creditors 1,70,000 Bank 1,10,000

WorkmenCompensationReserve
2,10,000 Debtors 2,40,000

GeneralReserve 2,00,000 Stock 1,30,000

Ramesh'sCurrentAccount 80,000 Furniture 2,00,000

CapitalA/cs: Machinery 9,30,000

Umesh'sCurrentAccount
Ramesh 7,00,000 50,000

Umesh 3,00,000 10,00,000

16,60,000 16,60,000

On the above date the firm was dissolved.

a. Ramesh took over 50% of stock atRs.10,000 less than book value.The remaining
stock was sold at a loss of Rs.15,000.Debtors were realized at a discount of 5%.
b. Furniture was taken over by Umesh for Rs.50,000 and machinery was sold for
Rs.450000
c. Creditors were paid in full.
d. There was an unrecorded bill for repairs for Rs.1,60,000 which was settled at Rs
140000.PrepareRealisationAccount,
20 A and B are in partnership sharing profits and losses in the ratio of 3:1. Their Balance Sheet on 31st
March, 2013 was as follows:
Liabilities ₹ Assets ₹
Creditors 38,500 Debtors 30,000
A’s Loan A/c 2,750 Stock 19,000

Capitals: Furniture 7,200

A 15,200 Bank 11,450
balance
B 11,200 26,400
67,650 67,650
The firm was dissolved on the above date. The assets realised: Stock ₹13,840, Furniture₹ 5,150 and
Debtors ₹29,200. The creditors were paid less discount amounting ₹250. The dissolution expenses
were ₹ 520. Prepare necessary ledger accounts.

26
21 The Balance sheet of P, Q & R as on 31st March 2003. Who are sharing profits in the ratio of 5:3:1
was as follows:

Liabilities Assets
B/P Buildings 40,000
40,000 Plant and
Loan from Bank 30,000 Machinery 40,000
Reserve Fund 9,000 Stock 19,000
Capital Debtors 42,000
P – 44,000 Provisions 2,000
Q – 36,000
R –20,000 1,00,000 40,000

Cash 4000
0
1,79,000 1,79,000

The partners dissolved the firm, the assets realized stock – Rs.23,400, Debtors – 50% fixed assets –
10% has than their book value B/P were settled for Rs.32,000. There was our outstanding bill
of Rs.800. Which was paid off. Realisation expense Rs.1,250 were also paid. Prepare realization A/c,
Bank A/c and partners capital A/c.

22 Monu and Shiksha were partners sharing profits and losses in the ratio of 3:2. They decided to
dissolve their firm on 31-03-2015, when their balance sheet was as follows:
BALANCE SHEET
Liabilities Amt Assets Amt
Creditors 40000 Cash 14000
Monu’s Brother’s 10000 Stock 8000
loan
Shiksha’s loan 15000 Debtors 18000 17000
Less PFBDD 1000
Gen Res 5000 Furniture 4000
Capital Plant 30000
Monu 10000 Investment 10000
Shiksha 8000 P/L A/c 5000
88000 88000
The Firm was dissolved on 1-4-2015 on the following terms:
a) Monu took over investments at Rs. 8000 and agreed to pay off her brother’s loan
b) The assets realized as follows: stock- Rs. 2000, Debtors-Rs. 20500, Furniture- Rs. 1000 more
than the book value and Plant Rs. 20000 less than its book value
c) Realisation expenses Rs. 1200
d) Creditors were paid off at a discount of 3%
e) Firm had an unrecorded asset of Rs. 5000 which was accepted by an unrecorded liability of Rs.
7000 in full settlement
Prepare necessary accounts to close the books of the firm.

27
23 A,BandCwereequalpartners.On31stMarch2019theirbalancesheetstoodas:

Liabilities Rs. Assets Rs.

Creditors 50,400 Cash 3,700

Reserve 12,000 Stock 20,100

CapitalA/c: Debtors 62,600

A 40,000 LoantoA 10,000

B 25,000 Investments 16,000

C 15,000 Furniture 6,500

Building 23,500

Total 1,42,400 Total 1,42,400

The firm was dissolved on the above date on the following terms:

i. For the purpose of dissolution Investments were valued at Rs.18,000 and A took
over the investments at this value,
ii. Fixed Assets realized Rs.29,700 whereas Stock and Debtors realized Rs.80,000.
iii. Expenses of Realisation amounted to Rs.1,300.
iv. Creditors allowed a discount of Rs.800..
Prepare Realisation Account, Cash Account and Partners'Capital Accounts showing how the
accounts would finally be settled among the partners.
24 Vishal and Pavitra were partners in a firm sharing profits in the ratio of 3 : 2. The Balance Sheet of
the firm on 31st March, 2016 was as follows :
Particulars Amount Particulars Amount
(Rs.) (Rs.)
Sundry creditos 80,000 Bank 1,72,000
Pavitra’s Sister’s 20,000 Debtors 27,000
loan Stock 50,000
Vishal 3,69,000 Furniture 2,20,000
1,75,000
Pavitra 4,69,000 4,69,000
1,94,000
On the above date the firm was dissolved. The assets were realized and the liabilities were paid off as
follows :
a) 50% of the furniture was taken over by Vishal at 20% less than book value. Th remaining furniture
was sold for Rs.1,05,000.
b)Debtors realized Rs.26,000
c)Stock was taken over by Pavitra for Rs. 29,000.
d)Pavitra’s sister’s loan was paid off along with an interestof Rs.2,000.
e)Expenses on realization amounted to Rs. 5,000.
Prepare Realisation Account, Partner’s Capital Accounts

28
 ACCOUNTING FOR SHARE CAPITAL

Q.1 VERY SHORT ANSWER TYPE QUESTIONS [1 MARK]

What is meant by issue of shares at premium?

Q.2 What is meant by over-subscription? What options does a Company have to deal with over-
subscription?

Q.3 Equity shareholders are ;

(a) Creditors (b)Owners (c) Customers of the company (d) None of these
Q.4 A company issued 25,000 shares and received applications for 35,000 shares . company wants to
allot shares to everyone who has applied.
What will be the ratio for allotment
. (a) 6:7 (b) 7:5 (c) 5:7 (d)7:6
Q.5 In a Public Company the maximum number of members is :
(a) 50 (b) 1000 (c) 20 (d)Upto number of shares
Q.6. Premium received on issue of shares at :
(a) Liabilities side (b) Assets side (c) Credit side of profit and loss A/c (d)Debit side
of profit and loss A/c
Q.7 Which amongst the following shares confer voting rights on its holders ?
(a) Equity share (b) Redeemable preferences shares
. ( c) participatory preference shares (d) None of these
Q.8 A Company forfeited 60 shares ofRs. Rs. 10 each Rs. 8 per share called up on which X had
paid application and
Allotment money of Rs. 6 per share. Shares forfeiture a/c will be credited by the amount –
. (a) 160 (b)480 (c) 360 (d) 200
Q.9 Match Part – A with Part –B
Part -A Part-B
(i)Essential features of a company (a) Basic discount
(ii) Private company (b) Restrict the right of transfer of shares
(iii) Memorandum of Association ( c) Atleast 51% shares on paid up capital
(iv) Govt. Company with Govt.
(v) Company’s Preliminary Expense
(d) Underwriting commission
(e) Limited liability

Q.10 True or False Type Questions (state true or false)

1. Issued capital can be less than called up capital. (True / False)
2. Share of a company is moveable asset. ((True / False)
3. Promoters are the owners of the company. (True / False)
4. Capital reserve is made out of capital profits. (True / False)
5. Ltd. Word is used for private companies. (True / False)

29
 Fill in the blacks.
Q.11 1. Upon forfeiture of shares, share capital account is debited by ………………………….
2. The profit made on reissue of shares is transferred to …………………………………….
3. When shares are forfeited, Calls – in- arrear Account is…………………….
4. If a share Rs. 50 on which Rs. 40 has been called up and Rs. 30 is paid is forfeited, the
capital account should be debited with……………………….
5. If shares were issued at premium and such premium has been received then on
forfeiture such premium is…………………………………..
SHORT ANSWER TYPE QUESTIONS [3/4 MARKS]
Q.12. What is the difference between capital reserve and reserve capital?
Q.13 State the provisions of section 52 of companies act 2013.OR
. How security premium can be utilized by the company?
.Q.14 ABC Ltd. issue 10,000 equity shares of Rs 100 each, payable as Rs 30 on application, Rs 40 on
. allotment and Rs 30 on first and final call. Pass necessary journal entries.
Q.15 AB Ltd issues 5,00,000 equity shares of Rs 10 each at 20% premium, payable as Rs 3 on
Application, Rs 4 on allotment, Rs 2 on first call and balance on final call. Applications received
for 6,00,000 Equity shares, 40,000 applicants rejected and rest allotted proportionately. All the
calls were made and duly received. Pass necessary journal entries.
Q.16 XY Ltd purchased Land of Rs 8,00,000 and Machinery of Rs 3,00,000 from PQ Ltd.Purchase
consideration satisfied by issue of equity shares of Rs 100 each. Pass necessary journal entries for
above transactions.
Q.17 MN Ltd. purchased Land of Rs 19, 00,000, Plant and Machinery of Rs 6,00,000 and also
acquired creditors of Rs 3,00,000. Purchase consideration settled by issue of Equity shares of Rs
100 each at 10% premium. Pass necessary journal entries
Pass necessary Journal entries for the following transaction in the books of Sachin Ltd.
Sachin Ltd. purchased a running business from Deepak Ltd. for a sum of Rs.3,00,000 payable as
Q.18 Rs.2,50,000 in fully paid Equity shares and balance by a bank draft. The assets and liabilities
consisted of the following :- Plant and Machinery Rs.72,000; Building Rs.80,000; Sundry
Debtors Rs. 38,000; Stock Rs. 60,000; Sundry Creditors Rs.40,000.
Q.19 100 shares of Rs 10 each(Rs 8 called up) cancelled as shareholder failed to pay first call of Rs 3.
All the shares reissued for Rs 7 per share as fully paid up. Pass entries for forfeiture and re-issue
Q.20 Pass journal entries for the forfeiture and re-issue in the following cases:-
(a.) Z Limited forfeited 800 shares of Ashok of Rs. 10 each fully paid called up due to non-
payment of Final Call of Rs. 3 per share. All these shares were re-issued to Mohan for Rs. 8 per
share as fully paid up.
(b.) (b)K Limited forfeited 80 shares of Rs. 100 each due to non-payment of First Call of Rs.
20 per share. Second and Final Call of Rs. 30 has not been yet called. Out of these 24 shares
were re-issued for Rs. 60 per share.
Q.21 80 shares of Rs 10 each, cancelled due to nonpayment of final call of Rs 3. All the shares reissued
at Rs 12 per share. Pass entries for forfeiture and re-issue.
Q.22 Axis Ltd. issues 60,000 Equity shares of Rs 100 each at 10% premium, payable as follows:
Application Rs 20, Allotment Rs 30, First call Rs. 30, second call - balance.
Issue was oversubscribed by 40,000 shares. 20,000 applications rejected and rest alloted
proportionately . All installments were duly received, except call money on 200 shares. Pass
necessary journal entries.

30
Q.2 On 1st April 2012 Ashwin Ltd. was formed with an authorized capital of 10,00,000 divided into
5 20,000 equity shares of Rs. 50 each. The company issued prospectus inviting applications for
18,000 shares. The issue price was payable as under: On application: Rupees 20. On allotment:
Rupees 20 On call: balance amount. The issue was fully subscribed and the company allotted
shares to all the applicants
The company did not make the call during the year, Chahal having 1,000 shares didn’t pay the
allotment.
Show the following:
(a) Share capital in the balance sheet of the company as per schedule III, part
1 of the Companies Act, 2013.
(b) Also prepare notes of accounts for the same.

LONG ANSWER TYPE QUESTIONS [8 MARKS]

Q.26. A ltd invited applications for issuing 1,50,000 equity shares of Rs.10 each at a discount of
10%.The amount was payable as follows:
On application Rs.2 per share
On allotment Rs.2 per share
On first and final call balance.
Applications for Rs.3,00,000 shares were received.
Applications for 50,000 shares were rejected and application money of these applicants was refunded.
Shares were allotted on pro rata basis to the remaining applicants Excess money received with these
applicants was adjusted towards sum due on allotment. Neha who had applied for 2,500 shares, failed
to pay the allotment and first and final call money. Hemant did not pay the first and final call money
on his 2000 shares. All these shares were forfeited and later on 2000 of these shares were reissued at
Rs.17 per share fully paid up. The reissue shares included all the shares of Neha.
Pass the necessary journal entries in the books of A ltd. For the above transactions.
Q.27.Jk.ltd invited application for issuing 70,000 equity shares of Rs.10 each at a premium of Rs.2 per
share the amount was payable as follows:
On application Rs.3 per share
On allotment Rs.4(including premium Rs.2)
On first and final call balance
Applications for 65,000 shares were received and allotment was made to all the applicants .A
shareholder Ram who was allotted 2000 shares failed to pay the allotment money. His shares were
forfeited immediately after the allotment.Afterwards the first and final call was made. Soham who had
3,000 shares failed to pay the first and final call his shares were also forfeited.Out of forfeited shares
4,000 were reissued at Rs.20 per share fully paid up.The reissued share included all the shares of Ram.
Pass the necessary journal entries for the above transactions in the book of JK.ltd .
Q. 28 .Garima Limited issued a prospectus inviting applications for 3,000 shares of
Rs. 100 each at a premium of Rs.20 payable as follows:
On Application Rs.20 per share
On Allotment Rs.50 per share (Including premium)
On First call Rs.20 per share
On Second call Rs.30 per share
Accounting for Share Capital 5 7
Applications were received for 4,000 shares and allotments made on prorata
basis to the applicants of 3,600 shares, the remaining applications being
rejected, money received on application was adjusted on account of sums due on allotment.

31
Renuka whom 360 shares were allotted failed to pay allotment money and
calls money, and her shares were forfeited.
Kanika, the applicant of 200 shares failed to pay the two calls, her shares
were also forfeited. All these shares were sold to Naman as fully paid for Rs.80
per share. Show the journal entries in the books of the company.

Q.29. Raja Ltd. Invited applications for 1,00,000 equity shares of Rs. 10 each . the shares were
issued at a premium of Rs. 5 per share. The amount was payable as follows
On application and allotment Rs. 8 per share (including premium Rs. 3 )
The balance including premium on the first and final call .
Applications for 1,50,000 shares were received . Applications for 10,000 shares were rejected and pro-
rata allotment was made to the remaining applicants on the following basis.
(i) Applicants for 80,000 shares were allotted 60,000 shares.
(ii) Applicants for 60,000 shares were allotted 40,000 shares.
(iii) P, who belonged to the first category and was allotted 300 shares, failed to pay first call money.
Q, who belonged to the second category and was allotted 200 shares ,also failed to pay the first call
money . their shares were forfeited . the forfeited shares were re-issued@ Rs. 12 per share fully paid –
up . pass necessary journal entries and prepare cash book .

Q.30. on 1st June , 2019, kartik Ltd. Offered for subscription 50,000 equity shares of Rs. 100 each at
a premium of Rs. 20 per share payable as given below
On application Rs. 20 per share , on allotment (Including premium ) Rs. 50 per share and two month
after allotment Rs. 50 per share .
Application were received for 84,000 shares. On 1 st July , 2019 , the Directors processed to allot
shares proportionately . of these, application for 4,500 shares were accompanied with full amount and
hence, were accepted in full and the balance allotment was made on pro-rata basis.
Excess amount paid by applicants was utilized towards allotment and call money due from them.
One of the applicants to whom 300 shares were allotted proportionately , failed to pay the call money.
His shares were forfeited on 30th November , 2019 and subsequently issued @ Rs. 130 per share.
Record entries relating to these transactions in the journal of the company.

Q.31 CANDID Ltd. Invited applications for issuing 75,000 equity shares of Rs. 100 each at a
premium of Rs. 30 per share . the amount was payable as follows .
On application and allotment Rs. – Rs. 85 per share (including premium )
On first and final call- the balance account .
Applications for 1,27,500 shares were received . Applications for 27,500 shares were rejected and
shares were allotted on prorate basis to the remaining applicants.
Excess money received on application and allotment was adjusted towards sum due on first and final
call. The calls were made. A shareholder , who applied for 1,000 shares, failed to pay the first and
final call money . his shares were forfeited . all the forfeited shares were re- issued at Rs. 150 per
share fully paid –up.
Pass necessary journal entries for the above transactions in the books of CANDID Ltd.
Q.32. The Director of X Ltd. issued for public subscription 50,000 equity shares of Rs. 10 each at
Rs. 12 per share payable as to Rs. 5 on application (including premium), Rs. 4 on allotment and the
balance on call. Applications for 70,000 shares were received. Of the cash received Rs. 40,000 was
returned and Rs.60,000 was applied to the amount due on allotment, All the shareholders paid the call
due with the exception of an allottee of 500 shares. These shares were forfeited and reissued as fully
paid at Rs. 8 per share.
The company, as a matter of policy, does not maintain a calls-in-arrears account.
Give journal entries to record these transactions in the books of X. Ltd.
32
Q.33. Sunrise Company Limited offered for public subscription 10,000 shares of Rs.10 each at Rs. 11
per share. Money was payable as follows:
Rs. 3 on application
Rs. 4 on allotment (including premium)
Rs. 4 on first and final call.
Applications were received for 12,000 shares and the directors made prorate allotment.
Mr. Ahmad, an applicant for 120 shares, could not pay the allotment and call money, and Mr. Basu, a
holder of 200 shares, failed to pay the call. All these shares were forfeited. Out of the forfeited shares,
150 shares (the whole of Mr. Ahmad’s shares
being included) were issued at Rs. 8 per share fully paid-up.
Prepare Cash Book, Shares Capital Account and Share Forfeiture Account.

Q.34. A Ltd. Invited applications for issuing 1,00,000 shares of Rs.10 each at a premium of Rs. 1 per
share . The amount was payable as follows
On application Rs. 3 per share
On allotment Rs. 3 per share (including premium )
On first call Rs. 3 per share
On second and final call Balance amount
Application for 1,60,000 shares were received . Allotment was made on the following basis
(i) To applicants for 90,000 shares 40,000 shares
(ii) To applicants for 50,000 shares 40,000 shares
(iii) To applicants for 20,000 shares Full shares
Excess money paid on application is to be adjusted against the amount due on allotment and call.
Rishabh , a shareholder, who applied for 1,500 shares and belonged to category (ii) , did not pay
allotment, first and second and final call money , Another shareholder, Sudha , who applied for 1,800
shares and belonged to category (i), did not pay the first and second and final call money.
All the shares of Rishabh and Sudha were forfeited and were subsequently re- issued at Rs. 7 per share
fully paid.
Pass the necessary journal entries in the books of A Ltd. Open calls -in-arrears account and calls-in-
advance account wherever required.

33
 ACCOUNTING FOR DEBENTURES

1) What do you meant by Debentures.?

2) Write any four types of debentures
3) What is debenture Trust Deed?
4) What is meant by convertible debentures?
5) Why is premium on the issue of debentures considered as a capital profit?
6) Explain deep discount Bond
7) Differentiate between shareholders and debenture holder,
8) What is the nature of interest on debentures?
9) State in brief, the SEBI Guidelines regarding Debenture Redemption Reserve.
10) Name the head under which discount on issue of debentures appears in the Balance Sheet of
"C" Company.
11) What are the exceptions for creating debenture Redemption Reserve?
12) What do you mean by debentures issued as collateral security?
13)A Ltd issued 5,000 13% debentures of Rs.100 each at par and raised a loan of
Rs.80, 000 from Bank.Collaterally secured by Rs. 100,000 13% debentures. How will You show the
debenture in the Balance Sheet of the Company assuming that thecompany has recorded the issue of
Debentures as collateral security in the books.

15) Ashoka Ltd. had Rs. 5, 00,000 12% debentures outstanding as on 1st Jan, 2003. During the year
company took a loan of Rs. 3, 00,000 from Bank of Punjab for which the company placed with the
bank debentures of Rs. 3, 60,000 as collateral security.
Pass journal entries and also show how the debentures and bank loan will appear in the balance sheet.

16) XYZ Co. Ltd., issued 10000 10% debentures of Rs.100 each at a premium of Rs. 5 payable as
follows
On application Rs.40, on Allotment Rs.65 (including premium)
All the debentures were subscribed and money was received, pass necessary journal entries to record
the issue of debentures

17) Pass Journal Entries to record the Issue of Debentures

1)5000 15% debenture of Rs.100 each issued at Discount of 5% and redeemable at premium at 5% after
5 years.
2) 10000 15% debenture of Rs.100 each issued at a premium of 10% and redeemable at par after 6
years.

18) Journalise the following transactions:

(a) 10 debentures issued at Rs. 100 repayable at Rs. 100.
(b) 10 debentures issued at Rs. 95, repayable at Rs. 100
(c) 10 debentures issued at Rs. 105 , repayable at Rs. 100
(d) 10 debentures issued at Rs. 100, payable at Rs. 105.
(e) 10 debentures issued at Rs. 95, Repayable at Rs. 105.

19)A building has been purchased for Rs.1,10,000 from X Ltd., X Ltd., has been issued 12%
debentures in Purchase Consideration at a Premium of 10% Journalise the above transaction.

34
 20) Raghav Limited purchased a running business from Krishna traders for a sum of Rs. 15,00,000
payable Rs. 3,00,000 by cheque and for the balance issued 9% debentures of Rs. 100 each at par.
The assets and liabilities consisted of the following:
Plant and Machinery 4, 00,000
Building 6, 00,000
Stock 5, 00,000
Debtors 3, 00,000
Creditors 2, 00,000
21.Nirnbaya chemical issued Rs. 1000000 6% debentures of rs. 50 each at a premium of 8%. On
30.6.2017 redeemable on 30.6.2018. the issue was fully subscribed . pass journal entries for issue and
redemption of debentures.row much amount should be transferred to DRR before redemption. Also
state how much amount should be invested in specific securities?

22.manish LTD.4000000 8% debenture of 100 each on 1st april 2016 . the term of issue state that the
debenture are to be redeemed at a premium of 5%on 30th june 2018 . The company decided to transfer
1000000 out of profit to debenture redemption reserve on 31st march 2017 and 1000000 on 31st march
2018 . pass journal entries regarding the issue ad redemption of debenture DRR and investment without
providing for the interest or loss on issue of debenture .
Analysis of Financial Statements
Q.1 Which of the following is not required to be prepared under the
Companies Act.
(A) Statement of profit and loss (B) Balance Sheet
(C) Report of Director’s and Auditor’s (D) Funds Flow Statement
Q.2 50,000, 9% Debentures redeemable within 12 months of the date of
Balance Sheet will be shown under:
(A) Short-term Borrowings (B) Short-term Provision
(C) Other Current Liability (D) Trade Payables
Q.3 Under which heading the item ‘Bills Discounted but not yet matured’ will
be shown in the Balance Sheet of a company?
(A) Current Liability (B) Current Assets
(C) Contingent Liabilities (D) Unamortized Expenditure
Q.4 Financial analysis becomes significant because it:
(A) Ignores price level changes
(B) Measures the efficiency of business
(C) Lacks qualitative analysis
(D) Is effected by personal bias
Q.5 For whom analysis of financial statements is not significant?
(A) Political Adviser of Prime Minister
(B) Investors
(C) Management
(D) Financial Institutions
Q.6 Payment of Income Tax is considered as
(A) Direct Expenses (B) Indirect Expenses
(C) Operating Expenses (D) None of the Above
Q.7 Net profit is obtained by deducting ………………from Gross Profit.
(A) Operating Expenses
(B) Non-Operating Exp.
(C) Operating and Non-Operating Exp.
(D) None of the Above

35
Q.8 Main objective of common Size Statement of Profit & Loss is :
(A) To present changes in assets and liabilities
(B) To judge the financial soundness
(C) To establish relationship between revenue from operations and other
Items of statement of Profit & Loss
(D) All of the Above
Q.9 Current assets include only those assets which are expected to be realised
Within ……………
(A) 3 months (B) 6 months
(C) 1 year (D) 2 years
Q.10 Which of the following transactions will improve the quick ratio?
(A) Sale of goods for cash (B) Sale of goods on credit
(C) Issue of new shares for cash (D) All of the Above
Q.11 Under which major heads and sub-heads the following items will be
places in the Balance Sheet of a company as per revised Schedule VI, Part
I of the Companies Act, 1956 (Schedule III, Part I of the Companies Act,
2013)?
(i) Accrued Incomes (ii) Loose Tools
(iii) Provision for Employees Benefits (iv) Unpaid Dividend
(v) Short-term Loans (vi) Long-term Loans
Q.12 Under which sub-heads will the following items be placed in the Balance
Sheet of a company as per revised Schedule VI, Part I of the Companies
Act, 1956 (Schedule III, Part I of the Companies Act, 2013)?
(i) Capital Reserve (ii) Bonds
(iii) Loans repayable on Demand (iv) Vehicles
(v) Goodwill (vi) Loose Tools
Q.13 From the following Balance Sheet of Exe Ltd. As at 31st March, 2020,
Prepare Comparative Balance Sheet:
BALANCE SHEET as at 31 March, 2020
Particulars Note 31st March, 31st March,
No. 2020 (₹) 2019 (₹)
I. EQUITY AND LIABILITIES
1. Shareholders’ funds
Share Capital (Equity) 18,00,000 12,00,000
2. Non-Current Liabilities
Long-term Borrowing: 8% Debentures (Secured) 6,00,000 6,00,000
3. Current Liabilities
Trade Payables 6,00,000 3,00,000

Total 30,00,000 21,00,000

II. ASSETS
1. Non-Current Assets
Fixed Assets: Tangible Assets 18,00,000 15,00,000
2. Current Assets
(a) Trade Receivables 10,00,000 5,00,000
(b) Cash and Cash Equivalents 2,00,000 1,00,000

Total 30,00,000 21,00,000

36
Q.14 From The following information, prepare a Comparative Statement
of Profit and Loss:
Particulars 31st March, 31st March,
2017 2016
Revenue from Operations ₹ 24,00,000 ₹ 18,00,000
Other Incomes (% of Revenue from Operations) 15% 25%
Expenses (% Revenue from Operations) 60% 50%
Tax Rate 40% 40%

Q.15 Prepare Common-size Statement of Profit and Loss from the following
Information:
Particulars 31st March, 2020 31st March, 2019
Revenue from Operations ₹ 10,00,000 ₹ 7,50,000
Other Income ₹ 1,00,000 ₹ 75,000
Purchases of stock-in-Trade ₹ 7,50,000 ₹ 6,00,000
Change in Inventories of Stock-in-Trade ₹ (50,000) ₹ 10,000
Other Expenses ₹ 10,000 ₹ 7,500
Rate of Income Tax 50% 50%

Q.16 Prepare Common-size Balance Sheet from the following information:

Particulars 31st March, 31st March, 2020
2019 (₹) (₹)
Shareholders’ Funds 12,00,000 18,00,000
Non-current Liabilities 6,00,000 6,00,000
Current Liabilities 2,00,000 6,00,000
Non-current Assets 14,00,000 21,00,000
Current Assets 6,00,000 9,00,000

Q.17 Calculate Liquid Ratio/Quick Ratio/Acid Test Ratio from the following:
Working Capital ₹ 1,80,000; Total Debts, i.e., Outside Liabilities ₹
3,90,000; Long-term Debts ₹ 3,00,000; Inventories ₹ 90,000.
Q.18 From the following information, compute Debt to Equity Ratio:
Long-term Borrowing 5,00,000 Equity Share Capital 2,00,000
Long-term Provisions 1,00,000 General Reserve 2,00,000
Surplus, i.e., Balance in Statement of
Profit and Loss (Dr.) 1,00,000
Q.19 From the following information, calculate Proprietary Ratio, Debt to
Equity Ratio and Total Assets to Debt Ratio:
Non-current Assets ₹ 40,00,000; Current Assets ₹ 40,00,000; Long-term
Borrowing ₹ 25,00,000; Long-term Provisions ₹ 15,00,000; Current
Liabilities ₹ 20,00,000.
Q.20. From the following details obtained from the financial statement of Jeev
Ltd., calculate Interest Coverage Ratio:
Net Profit after Tax ₹ 1,20,000
12% Long-term Debt ₹ 20,00,000
Tax Rate 40%

37
Q.21 ₹ 2,00,000 is Cost of Revenue from Operations (Cost of Goods Sold);
Inventory Turnover Ratio 8 times; Inventory in the beginning is 1.5
Times more than the Inventory at the end. Calculate values of Opening
And Closing Inventory.
Q.22 From the following information, calculate Trade Receivables Turnover
Ratio:
Cost of Revenue from Operations (Cost of Goods-₹3,00,000 Opening Debtors-₹50,000
Gross Profit on Cost – 25% Closing Debtors-₹1,00,000
Cash Sales – 20% of Total Sales
Q.23 Current Assets ₹ 12,00,000; Current Liabilities ₹ 2,40,000; Sales: Credit ₹
24,00,000 and Cash ₹ 5,20,000; Sales Return ₹ 40,000; Calculate Working
Capital Turnover Ratio from the above information.
Q.24 Opening Inventory ₹ 5,00,000; Closing Inventory ₹ 3,00,000. Inventory
Turnover Ratio 8 Times. Selling price 25% above cost. Calculate Gross
Profit Ratio.
Q.25 Calculate ‘Return on Investment’ and ‘Debt to Equity Ratio’ from the
following information:
Net Profit after Interest and Tax ₹ 3,00,000
10% Debentures ₹ 5,00,000
Tax Rate 40%
Capital Employed ₹40,00,000

CASH FLOW STATEMENT

1 The basis of cash flow statement is____________________
2 Debentures issued for consideration other then cash are not shown in the cash flow statement
because_______________________________-is not received against the issue.
3 Marketable securities are included in ________--
4 Curret investment are shown in____________________________
5 Buyback of own share is shown as outflow in financing activity as
__________________________
6 Discount / loss on issue of debentures writtenoff is shown by way of deduction from
______________________ of the debentures.
7 Dividend received by other then financial enterprises is shown in cash flow statement under
(i)operating activity (ii) Investing activity
(iii) Financing activity (iv) general activity
8 Dividend receivedby financial enterprises is shown in cash flow statement under
(i)operating activity (ii) Investing activity
(iii) Financing activity (iv) general activity
9 Payment of income tax is shown as
(i)operating activity (ii) Investing activity
(iii) Financing activity (iv) general activity
10 Dividend paid by a non financing company is shown as
(i)operating activity (ii) Invensting activity
(iii) Financing activity (iv) general activity
11 Which of the following is shown under financing activity
(i) Cash received received against sale of goods
(ii) Cash received received against purchase of goods
(iii) commission received (iv) interest paid

38
12 Which of the following is not added as non cash expense
(i) Goodwill amortised (ii) depreciation
(ii) Interest on debentures paid (iv) all of these
13 Identity the following transaction belonging to (i) operating activity (ii) financing activity (iii)
investing activity (iv) cash and cash equivalent
1.cash sales 11.cash purchase
2. Rent paid 12.cash in hand
3. Incometax paid 13.office expense
4.balance at bank 14. sale of machine by adealer of
machine
5.issue of debentures 15. dividend paid
6.cash paid against trade payables 16. purchase of machine
7.income tax refund recieved 17. issue of share capital
8.sale of patents 18.purchase of marketable securities
9.purchase of goodwill 19. short term deposit in bank
10.purchase of securities 20.cash received from debtors
14 Calculate cash flow from operating activity from the following details
Particulars 31.32020 30.3.2019
Surplus i.e balance in statement of p/l 300000 200000
Bills receivables 180000 140000
Accumulated depreciation 320000 300000
Outstanding rent 40000 16000
Prepaid insurance 12000 14000
goodwill 160000 200000
stock 180000 140000
15 Calculate cash flow from operating activity
particulars Amount
Net profit after tax and dividend 110000
Provision for tax 50000
Proposed dividend(last year)approved by shareholders inAGM 50000
depreciation 20000
Loss on sale of plant 10000
Goodwill amortised 40000
Gain on sale of land 40000
Income tax paid 50000
Income tax refund 40000

16 State the category of the following items for a financial as well as non-financial company
(1) Dividend received
(2) Dividend paid
(3) Interest paid
(4) Interest received
17 What are the objectives of preparing cash flow statement?
18 Calculate the net amount of cash flow if a fixed asset costing Rs. 32,000(having a book value
of Rs. 24,000) is sold at a loss of Rs. 8,000.

39
19 X Ltd. made a profit of Rs.1, 00,000/- after charging depreciation of Rs.20,000/- on assets and a
transfer to General Reserve of Rs.30,000/-. The Goodwill written off was Rs.7, 000/- and the
gain on sale of machinery was Rs.3, 000/-. The other information available to you (changes in
the value of current assets and current liabilities) is as follows:
At the end of the year Debtors showed an increase of Rs.6, 000/-, creditors an increase
of Rs.10, 000/-, prepaid expenses an increase of Rs.200/-, Bills Receivable a decrease of Rs.3,
000/-, Bills Payable a decrease of Rs.4, 000/- and outstanding expenses a decrease of Rs.2,
000/-. Ascertain the cash flow from the operating activities.
20 From the following information calculate cash flow from financing activity
Particulars 31.3.2020 31.3.2019
Equity share capital 900000 700000
12% preference share capital 300000 500000
Security premium 140000 100000
12% debentures 400000 300000
Additional information
1. dividend paid on preference share
2..12%preference shares were redeemed at a premium of 5% on 31.3.2020
3.interim dividend paid on equity shares at the end of the current yearwas paid at
15%
21 From the following information calculate cash flow from financing activity
Particulars 31.3.2020 31.3.2019
Equity share capital 2000000 1500000
12% preference share capital --- 500000
14% debentures 250000 ----
Additional information
1.equity shares were issued at a premium of 20%
2.12%preference shares were redeemed at par
3.14% debentures were issued at a discount of 10%
4.interim dividend paid on equity shares 150000
5.interest paid on 14% debentures 35000
6.underwriting commission on equity share 20000
7.dividend paid on preference share 60000
22 From the following Balance sheet prepare Cash Flow Statement:
Particular Note 31stMarch 31StMarch
No. 2014 2013 (Rs.)
(Rs.)
I.EQITY AND LIABILITIES
1. Shareholders’ Funds
(a) Share Capital 2,50,000 2,00,000
(b) Reserve and Surplus 90,600 80,500
2. Current Liabilities
(a) Short Term Borrowings: Bank Loan ---- 70,000
(b) Trade Payables 1,35,000 1,50,000
(c) Short Term Provision: Provision for 35,000 30,000
Tax
Total 5,10,600 5,30,500

40
 II. ASSETS
1. Non Current
Assets
(a) Fixed Assets: 3,59,000 3,50,000
(i) Tangible 5,000 -----
Assets
(ii) Intangible
Assets: Goodwill
2. Current Assets
(a) Inventories 74,000 1,00,000
(b) Trade 64,000 80,000
Receivables 8,600 500
(c) Cash and
Cash Equivalents
Total 5,10,600 5,30,500
Notes to Accounts:
Particulars 31stMarch 31StMarch
2014 2013 (Rs.)
(Rs.)
1. Reserve and Surplus:
General Reserve 60,000 50,000
Surplus i.e. Balance in Statement of Profit 30,600 30,500
and Loss
90,600 80,500
2. Tangible Fixed Assets
Land and Building 1,90,600 2,00,000
Plant and Machinery 1,69,000 1,50,000
3,59,000 3,50,000
Additional Information:
1. Dividend of Rs.23,000 was paid.
2. The Income Tax paid during the year Rs.28,000.
3. Machinery was purchased during the year Rs.33,000.
4. Depreciation written off on Machinery Rs.14,000 , Building Rs.10,000. (M-6)

41
23 From the following Balance sheet prepare Cash Flow Statement:
Particular Note 31stMarch 31St March 2013
No. 2014 (Rs.)
(Rs.)
I.EQITY AND LIABILITIES
1. Shareholders’ Funds
(a) Share Capital 6,00,000 5,00,000
(b) Reserve and Surplus 75,000 50,000
2.Non Current Liabilities:
Long term Borrowings:
8% Debentures 1,10,000 2,00,000
3. Current Liabilities
(a) Short Term Borrowings: Bank 1,00,000 80,000
Overdraft
(b) Trade Payables 75,000 80,000
(c) Short Term Provision 40,000 30,000
Total 10,00,000 9,40,000
II. ASSETS
1.Non Current Assets
(a) Fixed Assets:
(i) Tangible
Assets: 5,50,000 5,50,000
Land and Building
(ii) Intangible 75,000 1,00,000
Assets: 2,00,000 1,50,000
Goodwill
(b) Investment
3. Current Assets
(iii) Inventories 80,000 60,000
(iv) Trade 90,000 68,000
Receivables 5,000 12,000
(v) Cash & Cash
Equivalents
Total 10,00,000 9,40,000
Notes to Accounts:
Particulars 31stMarch 31St
2014 March
(Rs.) 2013 (Rs.)
1. Reserve and Surplus:
Securities Premium Reserve 50,000 50,000
Surplus i.e. Balance in Statement of Profit 25,000 ------
and Loss
75,000 50,000
2. Short term Provisions:
Proposed Dividend 15,000 10,000
Provision for Tax 25,000 20,000
40,000 30,000

42
 Additional Information:-
1. Net profit for the year 2013-14 before Tax and Dividend amounted to Rs.63,000.
2. Provision for Tax during the year 2013-14 was Rs.23,000.
3. Depreciation provided on Fixed Assets for the year 2013-14 Rs.80,000.
4. Debentures amounted to Rs.90,000 were redeemed on 1st July 2013. (M-6)

24 Global ltd, has machinery written down value of which on 1.4.2019 was 860000 and on
31.3.2020 was 950000. Depreciation for the year was 40000. In the beginning of the year an
item of machinery was sold for 25000 which had a writtendown value of 20000 . calculate
cash flow from investing activity

25 Swan ltd. Had the following balances

Investment in the beginning of the period 34000
Investment at the end of the period 28000
During the year the company sold its 40% investment held in the beginning of the period at
aprofit of 8400 determine cash flow from investing activity

****************

43
 SKV VIDHYAASHRAM SENIOR SECONDARY SCHOOL
Affiliated to CBSE(Vide No – 1930454)
M.Kandampalayam, Maniyanoor(Po), Namakkal(Dt)

Grade: XII Subject: Business Studies (MCQ‘s)

Chapter 1 Nature and Significance of Management

1. Successful organisations do not achieve goals by chance but by following a deliberate process known as
(a) Planning
(b) Co-ordination
(c) Controlling
(d) Management

Answer/Explanation
Answer: d
Explanation:
(d) Management is considered to be a deliberate process as it involves creating an environment which is
conducive to efficient and effective performance.

2. Management is essential for the organisations which are

(a) Non-profit organisations
(b) Service organisations
(c) Social organisations
(d) All of the above

Answer/Explanation
Answer: d
Explanation:
(d) Management is essential for all types of organisations irrespective of their size or type.

3. Management contains a series of interrelated functions that include

(a) Planning
(b) Organising
(c) Directing
(d) All of the above

Answer/Explanation
Answer: d
Explanation:
(d) Management as a process contains a series of functions namely planning, organising, staffing, directing and
controlling.

4. People in the organisations carry out diverse tasks with the aim to achieve
(a) Different objectives
(b) Common objectives
(c) Both of the above
(d) None of the above

Answer/Explanation
Answer: b
Explanation:
(b) Management seeks to integrate individual goals with organisational goals and ensure realisation of both.

5. Successful management ensures that

(a) Goals are achieved with least cost
(b) Timely achievement of goals
(c) Both of the above
(d) None of the above

Answer/Explanation
Answer: c
Explanation:
(c) Management aims to carry out the work in a manner that is completed within the stipulated time
(effectiveness) and at the least cost (efficiency).

6. Efficiency is concerned with

(a) Doing the right thing
(b) Doing things right
(c) Achieving end results
(d) None of the above

Answer/Explanation
Answer: b
Explanation:
(b) Efficiency aims at reduction of cost through optimum utilisation of resources and avoiding wastage of
resources.

7. Effectiveness relates to
(a) Doing the right task
(b) Completing activities
(c) Achieving goals
(d) All of the above

Answer
Answer: d

8. Rohan works as a production manager in Global Enterprises Limited. He has been given the task of getting
1000 units of hand woven table mats manufactured at the cost of ₹150 per unit within 10 days. In order to be
acknowledged as an effective manager, he must ensure that
(a) The cost of production does not exceed ₹150 per unit
(b) The work is completed within 10 days even at higher cost per unit
(c) The cost of production is less than ₹150 per unit
(d) All of the above

Answer/Explanation
Answer: b
Explanation:
(b) The concept of effectiveness is related to the completion of the task within the stipulated time irrespective of
the cost involved.

9. Jay is working as a marketing manager in a company. Has been given the task of selling 100000 units of a
product at the cost of ₹100 per unit within 20 days. He is able to sell all the units within the stipulated time, but
had to sell last 1000 units at 20% discount in order to complete the target. In such a situation, he will be
considered to be
(a) An efficient manager
(b) An effective manager
(c) Both effective and efficient manager
(d) None of the above

Answer
Answer: b

10. Management is said to be poor if it is

(a) Efficient but ineffective
(b) Effective but inefficient
(c) Both inefficient and ineffective
(d) All of the above

Answer
Answer: c

11. Tarang Enterprises Limited is planning to increase its sales by 30% in the next quarter. Identify the feature of
management being highlighted in the given statement.
(a) Management is all pervasive
(b) Management is a goal oriented process
(c) Management is a continuous process
(d) All of the above

Answer/Explanation
Answer: b
Explanation:
(b) Management is considered to be goal oriented as an organisation is brought into existence for realisation of
certain goals.

12. Management is equally important to run a political organisation as it is to run an economic organisation.
Which feature of management is being reflected in the given statement?
(a) Management is goal oriented
(b) Management is multidimensional
(c) Management is all pervasive
(d) Management is a group activity

Answer/Explanation
Answer: c
Explanation:
(c) Management is required in all types: economic, social or political, and sizes of organisations.

13. Management translates the works to be carried out in terms of goals to be achieved and assigns the means to
achieve it. This statement relates to
(a) Management of work
(b) Management of people
(c) Management of operations
(d) All of the above

Answer/Explanation
Answer: a
Explanation:
(a) Management is multidimensional in nature and involves three aspects, management of work is one of them.

14. Which of the following statements highlights that management is a group activity?
(a) Organisation is a collection of diverse individuals with different needs.
(b) Achievement of common goal requires teamwork and co-ordination of efforts in a common direction.
(c) Each member of the organisation may have different individual goals but they must travel together towards
common goals.
(d) All of the above

Answer
Answer: d

15. Keeping in view the changes in the consumer demands and preferences ‗Tasitemaker Bakery‘ has reduced
the sugar and fat content in its products. This approach of business shows that management is
(a) An intangible force
(b) A group activity
(c) A dynamic function
(d) A multidimensional activity

Answer/Explanation
Answer: c
Explanation:
(c) In order to be successful, it is important that a business adapts itself to the changes in the taste and
preferences of the consumers.

16. Which of the following is not an organisational objective of management?

(a) Earning enough revenue to cover costs
(b) Earning sufficient profits to cover risks of business
(c) Increase in the prospects of business in the long run
(d) Providing free education to their employees children

Answer/Explanation
Answer: d
Explaination:
(d) Providing free education to children is a social objective of management.

17. Management is considered important because

(a) It helps an organisation to adapt to the changes
(b) Seeks to integrate individual efforts
(c) It helps in development of the society
(d) All of the above

Answer
Answer: d

18. Management is considered to be an art because

(a) The principles of management have universal validity
(b) The principles of management have universal application
(c) Different principles of management are brought into effect differently by different managers
(d) It is not important for the practising managers to be a member of a professional association.

Answer/Explanation
Answer: c
Explanation:
(c) Management is based on personalised application of the knowledge and skills.

19. Which of the following statements is not relevant to the concept of ―Management as an inexact science‖?
(a) The principles of management lack universal validity
(b) The principles of management lack universal applicability
(c) The principles of management have to be modified according to the given situation
(d) Management involves dealing with human behaviour and outcomes cannot be predicted with utmost
accuracy

Answer/Explanation
Answer: b
Explanation:
(b) The principles of management are not universaly valid as they deal with human behaviour and the outcome
of application of a principle cannot be predicted with utmost accuracy.

20. The authority-responsibility relationships that exist within the organisation give rise to
(a) Different functions within the organisation
(b) Different levels in the organisation
(c) Management as a multidimensional activity
(d) Management as a group activity
Answer
Answer: b

21. Which of the following is not a designation related to top level management?
(a) President
(b) Vice-President
(c) Chairman
(d) Production Manager

Answer/Explanation
Answer: d
Explanation:
(d) Production Manager is a designation for middle level management.

22. Which of the following is not a designation related to middle level management?
(a) Operations Head
(b) Sales Manager
(c) Chief Operating Officer
(d) Divisional Manager

Answer/Explanation
Answer: c
Explanation:
(c) Chief Operating Officer is a designation for top level management.

23. Which of the following is not a designation related to lower level management?
(a) Plant Superintendent
(b) Supervisors
(c) Section officers
(d) Marketing Manager

Answer/Explanation
Answer: d
Explanation:
(d) Marketing Manager is a designation related to middle level management.

24. Which of the following is a function of top level management?

(a) Ensuring quality of output
(b) Assigning necessary duties and responsibilities to their departments
(c) Taking responsibility for all the activities of the business and its impact on the society
(d) Ensuring that the safety standards are maintained within the organisation.

Answer/Explanation
Answer: d
Explanation:
(d) Ensuring quality of output; Ensuring the safety standards are maintained within the organisation – lower level
management and assigning necessary duties and responsibilities to their departments – middle level
management.

25. Which of the following statements does not pertain to middle level management?
(a) They are responsible for all the activities of the operational managers.
(b) They are responsible for the welfare and survival of the organisation.
(c) The interpreter the policies made by top level managers
(d) Co-operate with other departments for the smooth running of the organisation.

Answer/Explanation
Answer: b
Explanation:
(b) They are responsible for the welfare and survival of the organisation- top level management

26. Which of the following statements is not true for lower level management?
(a) Analyse the business environment and its implications for the survival of the business.
(b) Ensure the quality of the output
(c) They strive to reduce the wastage of resources
(d) They ensure that the safety standards are maintained within the organisation.

Answer/Explanation
Answer: a
Explanation:
(a) Analyse the business environment and its implications for the survival of the business-top level management

27. Identify the level of management which does not interact with the work force directly.
(a) Supervisory management
(b) Operational management
(c) First line managers
(d) Middle level management

Answer/Explanation
Answer: d
Explanation:
(d) The middle level managers interact with the supervisory/operational/first-line managers who in turn interact
with the workers directly.

28. The main task of this level of management is to determine the overall organisational objectives and strategies
for their realisation.
(a) Operational management
(b) Middle level management
(c) First line managers
(d) Top level management

Answer
Answer: d
29. This level of management serves as a link between top level managers and first line managers.
(a) Supervisory level management
(b) Operational management
(c) Middle level management
(d) None of the above

Answer
Answer: c

30. Organising as a function of management involves deciding

(a) What activities and resources are required
(b) Who will do a particular task
(c) Where will it be done
(d) All of the above

Answer
Answer: d

31. The function of management related to grouping of activities to be carried out into departments and creating
management hierarchy is
(a) Planning
(b) Organising
(c) Controlling
(d) Directing

Answer
Answer: b

32. This function of management relating to laying down the foundation for carrying out the other functions of
management successfully is
(a) Organising
(b) Staffing
(c) Planning
(d) Controlling

Answer
Answer: c

33. Supervision, communication, motivation and leadership are the key elements of this • function of
management.
(a) Directing
(b) Controlling
(c) Planning
(d) Organising
Answer
Answer: a

34. This function of Management related to placing the right person at the right job is
(a) Organising
(b) Staffing
(c) Planning
(d) Controlling

Answer
Answer: b

35. It is a force that binds all the functions Of management.

(a) Cooperation
(b) Co-ordination
(c) Planning
(d) Management hierarchy

Answer
Answer: b

36. Co-ordination is considered to be the essence of management because

(a) It is a common thread that runs through all the activities within the organisation
(b) It is implicit and inherent in all functions of the organisation
(c) It is a force that binds all the functions of management
(d) All of the above

Answer
Answer: d

37. Identify the process that provides the requisite amount, quality, timing and sequence of efforts, which
ensures that planned objectives are achieved with a minimum of conflict.
(a) Management
(b) Planning
(c) Co-ordination
(d) Controlling

Answer
Answer: c

38. Identify the feature of co-ordination being highlighted in the given statement: ―Coordination is not a one time
function, it begins at the planning stage and continue till controlling.‖
(a) Coordination ensures unity of action
(b) Coordination is an all pervasive function
(c) Coordination is a continuous process
(d) Coordination is a deliberate function

Answer
Answer: c

Chapter 2 Principles of Management

1. Which of the following statements is true with reference to principles of management?
(a) The principles of management have evolved.
(b) The principles of management are yet to be evolved.
(c) The principles of management are in the continuous process of evolution.
(d) None of the above.

Answer/Explanation
Answer: c
Explanation:
(c) Principles of Management are said to be evolutionary in nature as these principles have evolved over a long
period of time with continuous practice and experimentation.

2. By profession, FW Taylor was a

(a) Mechanical engineer
(b) Mining engineer
(c) Psychologist
(d) Human resource officer

Answer
Answer: a

3. The principles of pure science is considered to be _________ in nature.

(a) Flexible
(b) Rigid
(c) Creative
(d) None of the above

Answer/Explanation
Answer: c
Explanation:
(c) Because they are applied in an absolute or in a static manner.

4. Which of the following statements best defines the techniques of management?

(a) It is a set of guidelines to take decisions and actions.
(b) It is a procedure which involves a series of steps to be taken.
(c) They are general rules for behaviour of individuals.
(d) None of the above.

Answer
Answer: b

5. The principles of management have been developed on the basis of

(a) Observation
(b) Experimentation
(c) Personal experiences of the manager
(d) All of the above

Answer
Answer: d

6. Which of the following statements is/are true with reference to principles of management?
(a) The principles are guidelines to action.
(b) The principles denote a cause and effect relationship.
(c) Principles help the manager to take decisions while performing various management functions.
(d) All of the above.

Answer
Answer: d

7. The principles of management are intended to be applied to all types and sizes of organisations. This statement
reflects that the principles of management are
(a) General guidelines
(b) Flexible
(c) Universally applicable
(d) Mainly behavioural

Answer
Answer: c

8. The principles of management do not provide readymade straight jacket solutions to all management problems
because
(a) The real business situations are complex.
(b) The real business situations are dynamic.
(c) The principles act as general guidelines.
(d) All of the above.

Answer
Answer: d
9. Principles of management can be modified by the manager when the situation demands. This statement
implies that the principles of management are
(a) Rigid
(b) Contingent
(c) Flexible
(d) Universally applicable

Answer
Answer: c

10. The principles of management enhance the understanding of relationship between human and material
resources for the achievement of organisational goals. Identify the feature of the principles of management being
described in the given statement.
(a) Cause and effect relationships
(b) Optimum utilisation of resources and effective administration
(c) Formed by practice and experimentation
(d) Mainly behavioural

Answer
Answer: d

11. The application of the principles of management has to be changed as per the requirements of the prevailing
situation at a particular point of time. Which feature of the principles of management is being described in the
given statement?
(a) Contingent
(b) Mainly behavioural
(c) Cause and effect relationship
(d) General guidelines

Answer
Answer: a

12. Principles of management emphasize on logical and rational decision making rather than on the basis of bias
and prejudice. The given statement highlights that the knowledge of principles of management leads to
(a) Providing managers with useful insight into reality
(b) Scientific decisions
(c) Meeting changing environmental requirements
(d) All of the above

Answer/Explanation
Answer: b
Explanation:
(b) Principles of management are not based on rule of thumb/hit-and-trial method, but on a scientific approach.

13. ‗Rule of thumb‘ refers to

(a) Use of personal judgement in handling management issues
(b) Adopting a hit-and-trial approach to resolve management problems
(c) Both of the above
(d) None of the above

Answer
Answer: c

14. According to Taylor, ―even a small production activity like loading figures of iron into boxes can be
scientifically planned and managed. This can result in tremendous savings of human energy as well as wastage
of time and materials.‖ Identify the related principle of scientific management.
(a) Harmony, not discord
(b) Science, not rule of thumb
(c) Development of each and every person to get his/her greatest efficiency and prosperity
(d) None of the above

Answer/Explanation
Answer: b
Explanation:
(b) Taylor believes that there was only one method to maximize efficiency which can be developed to study and
analysis.

15. According to this principle of scientific management, ―Scientific management has for its foundation the firm
conviction that true interest of the management and workers are one and the same; the prosperity for the
employer cannot exist for a long time unless it is accompanied by prosperity for the employees and vice versa.‖
(a) Science, not rule of thumb
(b) Co-operation, not individualism
(c) Harmony, not discord
(d) All of the above

Answer
Answer: c

16. According to this principle of scientific management, the employees should be rewarded for their suggestions
which results in substantial reduction in the cost.
(a) Science, not rule of thumb
(b) Co-operation, not individualism
(c) Harmony, not discord
(d) All of the above

Answer
Answer: b

17. According to Taylor, ―each specialist is to be assigned work according to his/her qualities, the employees
who possess technical mastery should be involved in planning work whereas those with energy and good health
may be assigned execution work.‖ Name the related principle of scientific management.
(a) Functional foremanship
(b) Science, not rule of thumb
(c) Development of each and every person to his or her greatest efficiency and prosperity
(d) None of the above

Answer
Answer: c

18. Considering the fact that it is difficult to find one single person with all the needed qualities, Taylor
suggested appointment of a specialist through this technique of scientific management. Identify the technique.
(a) Standardisation and simplification of work
(b) Method study
(c) Functional foremanship
(d) Motion study

Answer/Explanation
Answer: c
Explanation:
(c) Through the technique of functional foremanship, Taylor suggested appointment eight specialists to monitor
various aspects of a job.

19. The concept of Work Study techniques includes

(a) Time study
(b) Motion study
(c) Fatigue study
(d) All of the above

Answer/Explanation
Answer: d
Explanation:
(d) The concept of work study includes time study, motion study, fatigue study and method study.

20. The objective of this technique of scientific management is to reduce a given line or a product to fixed type
sizes and characteristics. Name the technique.
(a) Method study
(b) Differential piece wage system
(c) Standardisation and simplification of work
(d) Functional foremanship

Answer/Explanation
Answer: c
Explanation:
(c) Through the technique of simplification, Taylor suggested elimination of unnecessary diversity of products.

21. This technique of scientific management helps in development of the concept of assembly line which is
widely used in automobile companies these days as well. Identify the technique.
(a) Motion study
(b) Standardisation and simplification of work
(c) Method study
(d) lime study

Answer/Explanation
Answer: c
Explanation:
(c) The concept of assembly line is used extensively in automobile industries like Toyota, Ford etc. these days as
well.

22. Which of the following is an objective of time study?

(a) To determine the number of workers to be employed
(b) To formulate suitable incentive schemes
(c) To calculate the labour costs
(d) All of the above

Answer
Answer: d

23. This technique of scientific management aims to determine the amount and frequency of rest intervals that
should be provided to the employees during working hours.
(a) Time study
(b) Method study
(c) Motion study
(d) None of the above

Answer/Explanation
Answer: d
Explanation:
(d) The correct answer is fatigue study.

24. The technique of differential piece rate system was developed by Taylor in order to
(a) Discriminate between efficient and inefficient workers
(b) Reward the efficient worker
(c) Motivate the inefficient workers to perform better
(d) All of the above

Answer/Explanation
Answer: d
Explanation:
(d) Through the technique of differential piece rate wage system, Taylor advocated . that efficient workers
should be paid at a higher rate as compared to inefficient workers.

25. The application of this principle of management leads to higher production and better work for the same
effort. Identify the related principle of general management.
(a) Discipline
(b) Equity
(c) Division of work
(d) Order

Answer/Explanation
Answer: c
Explanation:
(c) The application of principle of division of work enables an employee to gain proficiency in work by doing it
repetitively over a period of time.

26. According to this principle of general management, ―an organisation should safeguard against abuse of
managerial power, but at the same time a manager should have the necessary authority to carry out his
responsibility.‖ Name the principle of management being described in the given statement.
(a) Discipline
(b) Authority and responsibility
(c) Unity of command
(d) Unity of direction

Answer/Explanation
Answer: b
Explanation:
(b) Through the principle of authority and responsibility, Taylor advocated that there should always be a balance
between the authority granted and the • responsibility entrusted to an employee.

27. Name the principle of management suggested by Henri Fayol, which advocates that, ―there should be good
superiors at all levels, clear and fair agreement and judicious application of penalties.‖
(a) Authority and responsibility
(b) Esprit De Corps
(c) Order
(d) None of the above

Answer/Explanation
Answer: d
Explanation:
(d) The correct answer is Discipline.

28. According to Henri Fayol, if this principle of general management is violated, ―authority is undermined,
discipline is in jeopardy, order disturbed and stability threatened.‖ Identify the principle.
(a) Authority and responsibility
(b) Discipline
(c) Unity of command
(d) Equity

Answer/Explanation
Answer: b
Explanation:
(b) According to Fayol, there should be one and only one boss for every individual employee and dual
subordination should be avoided.
29. Through this principle of management, Henri Fayol guides the managers to exhibit exemplary behaviour and
advises that they should not fall into temptation of misusing their powers for personal benefit at the cost of
general interest of the organisation. Which principle of management is being described in the above statement?
(a) Remuneration of employees
(b) Centralisation and decentralisation
(c) Subordination of individual interest to general interest
(d) Equity

Answer/Explanation
Answer: c
Explanation:
(c) Through this principle, Fayol advocates that the interest of the organisation should supersede individual
interest of an employee under all kinds of situations.

30. Which principle of general management advocates that, ―Employee turnover should be minimised to
maintain organisational efficiency.‖?
(a) Stability of personnel
(b) Remuneration of employees
(c) Equity
(d) Esprit De Corps

Answer/Explanation
Answer: a
Explanation:
(a) According to Fayol, due care should be taken while carrying out the recruitment and selection process and the
new recruits should be placed at a particular position for a sufficient tenure.

Chapter 3 Business Environment

1. Which of the following is not a part of the business environment of business?
(a) Customers
(b) Suppliers
(c) Competitors
(d) None of the above

Answer/Explanation
Answer: d
Explanation:
(d) All of the above elements are a part of business environment of an enterprise.

2. Which of the following is not a component of specific forces of business environment?

(a) Technological conditions
(b) Customers
(c) Employees
(d) Investors
Answer/Explanation
Answer: a
Explanation:
(a) Technological conditions is a component of general forces that affect the business environment of an
enterprise.

3. The growing awareness about healthcare has led to an increase in the demand for healthcare products and
services in the country. Identify the feature of business environment being described in the above case.
(a) Dynamic nature
(b) Uncertainty
(c) Relativity
(d) Interrelatedness

Answer/Explanation
Answer: d
Explanation:
(d) Interrelatedness, as the different elements or parts of business environment are closely interrelated

4. Since more number of people have become more beauty and health conscious, our economy has witnessed an
unprecedented surge in the number of health and beauty spas and wellness clinics. Related feature of business
environment being described in the above lines is —
(a) Totality of external forces
(b) Dynamic nature
(c) Interrelatedness
(d) Relativity

Answer/Explanation
Answer: c
Explanation:
(c) Interrelatedness, as the different elements or parts of business environment are closely interrelated

5. ‗Twinkle Stars‘ is a well-known resort for organising parties, especially for children. However, in past 6
months its popularity has reduced considerably as a new resort with better ambience and facilities has opened
within its vicinity. Name the related feature of business environment which has influenced the business of
‗Twinkle Stars‘ adversely.
(a) Totality of external forces
(b) Dynamic nature
(c) Interrelatedness
(d) Uncertainty

Answer/Explanation
Answer: b
Explanation:
(b) Dynamic nature as business environment is dynamic in that it keeps on changing

6. Any kind of external devices, like compact discs (CD‘s) for computer, have become obsolete. Google, with its
Google Drive service, Apple with its iCloud offering, enables the users store documents, photos, music and
movies on web-based servers. Identify the feature of business environment being described in the above lines.
(a) Relativity
(b) Dynamic nature
(c) Uncertainty
(d) Interrelatedness

Answer/Explanation
Answer: c
Explanation:
(c) Uncertainty, as business environment is largely uncertain as it is very difficult to predict future events.

7. According to the United Nations Environmental Agency, the world produces around 300 million tons of
plastic each year, half of which constitutes single-use items. Ford is recycling over one billion plastic bottles
every year to develop elements of the car‘s interior, reducing the amount of plastic ending up in a landfill. The
American car maker has revealed that their Romanian-built EcoSport SUVs‘ carpets are made using 470
recycled single-use plastic bottles. The process for making Ford EcoSport carpets involves shredding bottles and
their caps into tiny flakes and then heating them to 260° C. Identify the related dimension of business
environment.
(a) Economic dimension
(b) Social dimension
(c) Technological dimension
(d) Political dimension

Answer/Explanation
Answer: c
Explanation:
(c) Technological dimension, as technology is facilitating recycling process.

8. DigiLocker is the country‘s first secured cloud-based platform for the storage, issuance and verification of
documents with the Driving Licence& Vehicle Registration System of the Road Transport Ministry. The
integration of a government department with DigiLocker since its launch last year is one of the biggest of its
kind. It will spare 1 people the trouble of carrying licences& vehicle papers, which can be accessed on phones
using the DigiLocker app. Identify the related dimension of business environment.
(a) Ecoriomic dimension
(b) Technological dimension
(c) Social dimension
(d) Political dimension

Answer/Explanation
Answer: b
Explanation:
(b) Technological dimension, as technology is facilitating online process.

9. The Uttarakhand government has developed surveillance network using latest satellite technology. Under this
system, the state‘s mining department would be in a position to check illegal mining activities across the state.
The state government is also considering the use of drones in its proposed campaign against illegal mining.
Identify the related dimensions of business environment.
(a) Economic dimension and Legal dimension
(b) Social dimension and Economic dimension
(c) Technological dimension and Political dimension
(d) Political dimension and Economic dimension

Answer/Explanation
Answer: c
Explanation:
(c) Technological dimension and Political dimension

10. In order to boost and double India‘s export of goods and services to over USD 1,000 billion by 2025, it is
important to lower effective corporate tax rate, bring down cost of capital and simplify regulatory and tax
framework. Identify the related dimension of business environment.
(a) Social dimension and Legal dimension
(b) Technological dimension and Political dimension
(c) Political dimension and Social dimension
(d) Economic dimension and Legal dimension

Answer/Explanation
Answer: a
Explanation:
(a) Economic dimension and Legal dimension

11. The Economic Survey, 2019 suggests that the psychological biases can be used in the realm of tax
compliance. It is in favour of using religious norms such ―dying in debt is a sin‖ to improve tax compliance.
Identify the related dimensions of business environment.
(a) Legal dimension and Social dimension
(b) Social dimension and Economic dimension
(c) Technological dimension and Political dimension
(d) Political dimension and Economic dimension

Answer
Answer: b

12. Electric vehicles with zero tail pipe emission are emerging as a good alternative to ‗ problems like climate
change, surging pollution leading to ill health, crude import bill and energy security. Identify the related
dimensions of business environment.
(a) Economic dimension, Legal dimension and Social dimension
(b) Social dimension, Political dimension and Economic dimension
(c) Economic dimension, Technological dimension and Social dimension
(d) Social dimension, Political dimension and Legal dimension

Answer
Answer: c

13. ‗Yo Tummy‘ began its business by offering the classic combo of hamburgers and fries. But over time, their
customers wanted healthier foods, so ‗Yo Tummy‘ responded and began offering healthy alternatives such as
salads, fruits, wraps and oatmeal. If ‗Yo Tummy‘ hadn‘t responded, they may have lost customers that wanted to
eat healthier foods. The above case highlights one of the points related to the importance of business
environment and its understanding by managers. Identify it.
(a) It helps in coping with rapid changes.
(b) It helps in improving performance.
(c) It helps the firm to identify threats and early warning signals.
(d) It enables the firm to identify opportunities and getting the first mover advantage.

Answer
Answer: a

14. As a result of major government initiatives, more and more people are going ‗green‘. In order to keep in line
with the trend, ‗Clapaway‘ a carpet cleaning company has advertised that they only use natural cleaners that
come from renewable resources and that all their service vehicles are hybrid vehicles that use both gas and
electricity. Identify one of the points related to the importance of business environment and its understanding by
managers which is being highlighted in the above case.
(a) It helps in assisting in planning and policy formulation.
(b) It helps in coping with rapid changes.
(c) It helps in improving performance.
(d) It enables the firm to identify opportunities and getting the first mover advantage.

Answer
Answer: c

15. According to the World Health Organization, 39% of adults are overweight. Over the last 40 years, the
prevalence of obesity has tripled around the world. With over half of consumers drinking at least one sugary
drink on a given day, regulations towards the beverage sector are likely to become increasingly onerous. In the
U.K., for example, a sugar tax was introduced in 2018 on beverages containing more than 5% sugar. Identify the
related dimensions of business environment.
(a) Legal dimension and Social dimension
(b) Social dimension and Technological dimension
(c) Technological dimension and Legal dimension
(d) Political dimension and Technological dimension

Answer
Answer: a

16. India‘s population is expected to grow under 0.5 per cent during 2031-41 due to decline in fertility rate and
increase in life expectancy. These changes in India‘s demography will also have implications such as the
proportion of elementary school-going children will witness significant declines, lack of hospital beds and
increase in retirement age. The related feature of business environment being described in the above lines is
(a) Totality of external forces
(b) Dynamic nature
(c) Interrelatedness
(d) Relativity

Answer
Answer: c
17. India continues to be a lower-middle-income country along with 46 others, while Sri Lanka has climbed to
the upper-middle-income group for the fiscal year (FY) 2020, according to the World Bank‘s classification of
countries by income levels, released on July 1, 2019.
Identify the related dimensions of business environment.
(a) Social dimension
(b) Technological dimension
(c) Economic dimension
(d) Political dimension

Answer
Answer: c

18. According to a report by the India Staffing Federation (ISF), India has emerged as the
fifth largest market worldwide in flexi-staffing in 2018 and the country would have 6.1 million flexi-workforce
by 2021. It showed that Haryana, Gujarat, Karnataka, Madhya Pradesh and Telangana are the states with high
growth potential for flexi- staffing but Andhra Pradesh tops the list of states with favourable business
environment. Identify the feature of business environment being discussed above,
(a) Relativity
(b) Dynamic nature
(c) Uncertainty
(d) Interrelatedness

Answer
Answer: a

19. The Union Cabinet has given ‗in-principle‘ nod to divest stakes in Air India — a wholly government owned
airline. This means the government is willing to shed a substantial portion of its stake and hand over the
management of the ailing airline to the private sector. Identify the concept being described in the above lines.
(a) Liberalisation
(b) Privatisation
(c) Globalisation
(d) Demonetisation

Answer
Answer: b

20. The Government of India launched ―Make in India‖ initiative in September, 2014 to increase foreign direct
investment (FDI) in 25 sectors. As of April, 2015, FDI inflow in India increased by 48% since the launch of
―Make in India‖ initiative.
Identify the concept being described in the above lines, with regard to inflow of FDI.
(a) Demonetisation
(b) Privatisation
(c) Liberalisation
(d) Globalisation

Answer
Answer: c
21. In today‘s world, the flow of goods and services is not only cheap and fast, but reliable and secure. You can
order anything you wish from any part of the world. Internet has been connecting people without any limitations
or boundaries in the way of doing business. Identify the concept being described in the above lines.
(a) Liberalisation
(b) Globalisation
(c) Demonetisation
(d) Privatisation

Answer
Answer: b

22. On 8th November 2016, with the announcement from Government of India, all the ₹500 and ₹1,000
banknotes of the Mahatma Gandhi series have ceased to be a legal tender. The givemment also announced the
issuance of new ₹500 and ₹2,000 banknotes in exchange for the demonetised banknotes. Identify the concept
being described in the above lines.
(a) Globalisation
(b) Liberalisation
(c) Demonetisation
(d) Privatisation

Answer
Answer: c

23. Which of the following is a feature of demonetisation?

(a) Tax administration measure
(b) Channelising savings into the formal financial system
(c) Development of less-cash economy
(d) All of the above

Answer
Answer: d

24. A business has to offer wider choice in purchasing enhanced quality of goods and services in order to
maintain an edge over its competitors. The implementation of the new economic policy with liberalisation,
privatisation and globalisation has posed various challenges for the corporate sector. One of the important
challenges is explained in the above lines. Identify it.
(a) Increasing competition
(b) More demanding customers
(c) Necessity for change
(d) Market orientation

Answer
Answer: a
Chapter 4 Planning
1. Name the function of management which involves setting objectives and developing appropriate courses of
action to achieve these objectives.
(a) Directing
(b) Organising
(c) Planning
(d) Staffing

Answer
Answer: c

2. Which of the following is not a benefit of planning?

(a) Planning reduces overlapping and wasteful activities.
(b) Planning is a mental exercise.
(c) Planning provides directions.
(d) Planning reduces the risks of uncertainty.

Answer/Explanation
Answer: b
Explanation:
(b) Planning is a mental exercise (it is a feature of planning)

3. Which of the following is a benefit of planning?

(a) Helps in avoiding confusion and misunderstanding.
(b) Ensures clarity in thought and action.
(c) Useless and redundant activities are minimised or eliminated.
(d) All of the above.

Answer
Answer: d

4. Which of the following statements is not true with reference to planning?

(a) Planning is a pre-requisite for controlling.
(b) Planning does not lead to rigidity.
(c) Planning enables a manager to look ahead and anticipate changes.
(d) Planning facilitates co-ordination among departments and individuals in the organisation.

Answer/Explanation
Answer: b
Explanation:
(b) Planning does lead to rigidity.

5. What is known as the primary function of management?

(a) Controlling
(b) Organising
(c) Planning
(d) Staffing

Answer/Explanation
Answer: c
Explanation:
(c) Planning lays down the foundation for all other functions.

6. Which of the following is not a feature of planning?

(a) Planning is futuristic.
(b) Planning is pervasive.
(c) Planning establishes standards for controlling.
(d) Planning focuses on achieving objectives.

Answer/Explanation
Answer: c
Explanation:
(c) it is a point of importance; Planning establishes standards for controlling.

7. All other managerial functions are performed within the framework of the plans drawn. Identify the related
feature of planning.
(a) Planning focuses on achieving objectives.
(b) Planning is pervasive.
(c) Planning is futuristic.
(d) Planning is primary function of management.

Answer/Explanation
Answer: d
Explanation:
(d) Planning is the basis for all other functions of management.

8. Planning requires logical and systematic thinking rather than guess work or wishful thinking. Identify the
related feature of planning.
(a) Planning is futuristic.
(b) Planning is a mental exercise.
(c) Planning establishes standards for controlling.
(d) Planning focuses on achieving objectives.

Answer/Explanation
Answer: b
Explanation:
(b) Planning is basically an intellectual activity of rational thinking.

9. Planning cannot foresee everything, and thus, there may be obstacles to effective planning. Identify the related
limitation of planning.
(a) Planning leads to rigidity.
(b) Planning may not work in a dynamic environment.
(c) Planning does not guarantee success.
(d) Planning reduces creativity.

Answer/Explanation
Answer: b
Explanation:
(b) in business environment, nothing is constant as it consists of a number of dimensions: economic, political,
physical, legal and social dimensions.

10. It is not always true that just because a plan has worked before it will work again. Identify the related
limitation of planning.
(a) Planning leads to rigidity.
(b) Planning reduces creativity.
(c) Planning may not work in a dynamic environment.
(d) Planning does not guarantee success.

Answer/Explanation
Answer: d
Explanation:
(d) there are so many other unknown factors to be considered.

11. Identify the correct sequence of steps involved in the planning process.
(a) Evaluating alternative courses, Identifying alternative course of actions, Setting objectives, Developing
premises
(b) Setting objectives, Identifying alternative course of actions, Evaluating alternative courses, Developing
premises
(c) Setting objectives, Developing premises, Identifying alternative course of actions, Evaluating alternative
courses
(d) Setting objectives, Developing premises, Identifying alternative course of actions, Evaluating alternative
courses

Answer
Answer: c

12. They represent the end point of planning.

(a) Rules
(b) Methods
(c) Objectives
(d) Policies

Answer/Explanation
Answer: c
Explanation:
(c) All other managerial activities are also directed towards achieving these objectives.
13. A strategy is derived from
(a) Policy
(b) Objective
(c) Method
(d) Rule

Answer/Explanation
Answer: b
Explanation:
(b) a strategy is a comprehensive plan devised for attaining organisational objectives.

14. A strategy is a comprehensive plan which will not include this dimension
(a) Determining long term objectives
(b) Adopting a particular course of action
(c) The ends which the management seeks to achieve by its operations
(d) Allocating resources necessary to achieve the objective

Answer/Explanation
Answer: c
Explanation:
(c) The ends which the management seeks to achieve by its operations – objective

15. They provide a basis for interpreting strategy, which is usually stated in general terms.
(a) Policies
(b) Procedures
(c) Objectives
(d) Programmes

Answer/Explanation
Answer: a
Explanation:
(a) Policies act as a guide to managerial action and decisions in the implementation . of strategy.

16. They detail the exact manner in which any work is to be performed.
(a) Rules
(b) Methods
(c) Procedures
(d) Programmes

Answer/Explanation
Answer: c
Explanation:
(c) procedures are specified in a chronological order

17. It helps to save time, money and effort, and increases efficiency.
(a) Procedure
(b) Programme
(c) Rule
(d) Method

Answer
Answer: d

18. It is a plan which quantifies future facts and figures.

(a) Procedure
(b) Programme
(c) Rule
(d) Budget

Answer/Explanation
Answer: d
Explanation:
(d) Budget is a numerical plan

19. Which of the following is not a standing plan?

(a) Policy
(b) Procedure
(c) Programme
(d) Rule

Answer/Explanation
Answer: c
Explanation:
(c) Programmes are specific and can be implemented only one time.

20. Which of the following is not a single use plan?

(a) Budget
(b) Programme
(c) Method
(d) All of the above

Answer/Explanation
Answer: c
Explanation:
(c) Methods can be used repetitively to perform routine jobs.

21. Micromax was India‘s largest seller of mobile handsets. It launched low-cost Chinese manufacturing with
some smart packaging and features like long-lasting batteries and dual-sim functionality to garner 20% market
share in India‘s value-conscious mobile handset market. Identify the two types of plans being described in the
above lines.
(a) Strategy and objective
(b) Rule and Programme
(c) Programme and objective
(d) Method and objective
Answer/Explanation
Answer: a
Explanation:
(a) Strategy and objective

22. According to a survey, these days the young children have more power in purchasing decisions than ever
before. The parents seek their kids‘ opinions about all kinds of once-adult decisions, including where to go for
dinner, what kind of car to buy, even what to wear,‖. Therefore, the retailers are adapting to this by enhancing
their kids‘ sections. If the children want to shop in the store for their clothes, then there‘s a greater chance the
parent will also see something they want to buy as well. Identify the type of plan being described in the above
lines.
(a) Programme
b) Method
(c) Strategy
(d) Rule

Answer
Answer: c

23. According to a survey of 250 consumer packaged goods (CPG) companies by a reputed
firm, 75% of brand owners say they‘re going to spend significantly more on packaging as it is critical to their
brand‘s success.
Identify the type of plan being described in the above lines.
(a) Rule
(b) Programme
(c) Strategy
(d) Method

Answer
Answer: c

24. According to the World Health Organization, 39% of adults are overweight. Consequently in the U.K., a
sugar tax was introduced in 2018 on beverages containing more than 5% sugar to curb sugar intake. Identify the
type of plan being described in the above lines.
(a) Programme
(b) Method
(c) Strategy
(d) Rule

Answer
Answer: c

25. According to the Economic Survey, insights from behavioural economics can be strategically utilised to
create an aspirational agenda for social change – from BBBP (BetiBachaoBetiPadhao) to BADLAVL
(BetiAapkiDhan Lakshmi Aur Vijay Lakshmi); from Swachh Bharat to Sundar Bharat; from ‗Give It Up‘ for the
LPG subsidy to ‗Think about the Subsidy‘ and from tax evasion to tax compliance. Identify the type of plan
being described in the above lines.
(a) Programme
(b) Method
(c) Strategy
(d) Rule

Answer
Answer: a

26. Shubham wants to increase the sale of his business by 15% in the next quarter. Identify the type of plan being
described in the above lines.
(a) Method
(b) Objective
(c) Strategy
(d) Programme

Answer
Answer: b

27. Packaging is said to have the unique capacity to make products stand out in a crowded marketplace.
Therefore, convenience of the consumer is at the top of mind of the marketers as they are focussing on
developing packaging that‘s easier to open, to protect against breakage, maintain freshness during delivery and
keep a consistent look and feel across multiple channels. Identify the type of plan being described in the above
lines.
(a) Programme
(b) Method
(c) Strategy
(d) Rule

Answer
Answer: c

28. Based on National Common Mobility Card standards, India‘s first indigenously developed inter-operable
transport card was launched in March 2019 to make travel across various modes convenient. Identify the type of
plan being described in the above lines.
(a) Strategy
(b) Programme
(c) Method
(d) Rule

Answer
Answer: a

29. India is world‘s third largest domestic aviation market. The government plans to make India a hub for
financing aircraft purchases and leasing of planes. In order to promote this, the government has announced tax
incentives, like tax deductions, for companies setting up business in IFSC for fifteen years. Identify the type of
plan being described in the above lines.
(a) Method
(b) Strategy
(c) Programme
(d) Rule

Answer
Answer: b

30. The government has been doubling down on its efforts to switch to 100% electric vehicles by 2030. Many
companies such as Tata Motors, Kinetic Motors, Maruti Suzuki and Hyundai Motors are all readying their EV
models for a 2020 launch in order to support the plan. Identify the type of plan being described in the above
lines.
(a) Method
(b) Strategy
(c) Programme
(d) Objective

Answer
Answer: b

31. In order to encourage technologies like artificial intelligence (AI), the internet of things (iot) and virtual
reality (VR), the government is planning to launch a scheme to invite foreign companies through a transparent
bidding process, to set up plants for manufacturing semi-conductors, solar photo voltaic cells, lithium cell
batteries, solar electric charging vehicles, computer servers, and laptops in India.
Identify the type of plan being described in the above lines.
(a) Method
(b) Strategy
(c) Programme
(d) Objective

Answer
Answer: b

32. Ketan Enterprises adopts different ways to provide training to employees, like Job . Rotation, Coaching,
Vestibule Training, Conference, Lecture Method and Role Playing. Identify the type of plan being described in
the above lines.
(a) Method
(b) Strategy
(c) Programme
(d) Procedure

Answer
Answer: a

33. Swatch Ltd. plans to earn a 20% return on its investment in a new project. Identify the type of plan being
described in the above lines.
(a) Method
(b) Strategy
(c) Programme
(d) Objective

Answer
Answer: d

34. Deepak is striving to earn a profit of 30% in the current financial year. Identify the type of plan being
described in the above lines.
(a) Method
(b) Objective
(c) Strategy
(d) Programme

Answer
Answer: b

35. Name the type of budget which is prepared to determine the net cash position.
(a) Purchase budget
(b) Sales budget
(c) Cash budget
(d) Production budget

Answer
Answer: c

36. In 2019 alone, Swiggy has launched operations in 300 towns and cities. Swiggy follows a two-step sequence
while expanding to a small town. First, it provides more laborious training to restaurants and delivery partners
compared to their counterparts in the city. Second, it focuses on building scale in operations and increase the
restaurant‘s reach to a larger base of consumers, including optimizing kitchens, resource planning among others.
Identify the type of plan being described in the above lines.
(a) Method
(b) Strategy
(c) Programme
(d) Procedure

Answer
Answer: b

Chapter 5 Organising
1. Name the process which co-ordinates human efforts, assembles resources and integrates both into a unified
whole to be utilised for achieving specified objectives,
(a) Management
(b) Planning
(c) Organising
(d) Directing

Answer
Answer: c

2. Organising is a process by which the manager

(a) Establishes order out of chaos
(b) Removes conflict among people over work or responsibility sharing
(c) Creates an environment suitable for teamwork
(d) All of the above

Answer
Answer: d

3. It is defined as the framework within which managerial and operating tasks are performed.
(a) Span of management
(b) Organisational structure
(c) Informal organisation
(d) None of the above

Answer
Answer: b

4. It refers to the number of subordinates that can be effectively managed by a superior,

(a) Organisational structure
(b) Informal organisation
(c) Span of management
(d) None of the above

Answer
Answer: c

5. As the span of management increases in an organisation, the number of levels of management in the
organisation
(a) Increases
(b) Decreases
(c) Remains unaffected
(d) None of the above

Answer/Explanation
Answer: b
Explanation:
(b) because more subordinates can be effectively managed by a superior
6. Uranus Limited is a company dealing in metal products. The work is mainly divided into functions including
production, purchase, marketing, accounts and personnel. Identify the type of organisational structure followed
by the organisation.
(a) Functional structure
(b) Relational structure
(c) Divisional structure
(d) None of the above

Answer/Explanation
Answer: a
Explanation:
(a) as the people are being grouped on the basis of functions

7. Identify the type of organisational structure which facilitates occupational specialisation,

(a) Functional structure
(b) Horizontal structure
(c) Network structure
(d) Divisional structure

Answer/Explanation
Answer: a
Explanation:
(a) it emphasises on specific functions

8. Identify the type of organisational structure which makes training of employees easier, as the focus is only on
a limited range of skills.
(a) Network structure
(b) Divisional structure
(c) Functional structure
(d) Matrix structure

Answer/Explanation
Answer: c
Explanation:
(c) as each employee is expected to gain proficiency with regard to one function only

9. This type of organisational structure is most suitable when the size of the organisation is large, has diversified
activities and operations require a high degree of specialisation,
(a) Divisional structure
(b) Functional structure
(c) Network structure
(d) Matrix structure

Answer/Explanation
Answer: b
Explanation:
(b) it relates to single product companies
10. Under this type of organisational structure, manpower is grouped on the basis of different products
manufactured.
(a) Divisional structure
(b) Functional structure
(c) Network structure
(d) Matrix structure

Answer/Explanation
Answer: a
Explanation:
(a) the divisions are created on the basis of products

11. Which of the following is not a feature of functional structure?

(a) It promotes functional specialisation.
(b) Managerial development is difficult.
(c) It is easy to fix responsiblity for performance.
(d) It is an economical structure to maintain.

Answer/Explanation
Answer: c
Explanation:
(c) it is difficult to fix responsibility for performance

12. Which of the following is not a merit of functional structure?

(a) It promotes control and co-ordination within a department.
(b) It makes training of employees easier, as the focus is only on a limited range of skills.
(c) It ensures that different products get due attention.
(d) It leads to occupational specialisation.

Answer
Answer: c

13. Rishabh has joined as a Creative Head in an entertainment company. He always ensures that the work has
been divided into small and manageable activities and also the activities of similar nature are grouped together.
Identify the related step in organising process being mentioned in the above lines.
(a) Identification and division of work
(b) Departmentalisation
(c) Assignment of duties
(d) Establishing reporting relationships

Answer
Answer: b

14. Indigo Limited has a staff of 300 people which is grouped into different departments. The organisational
structure depicts that 100 people work in Production department, 150 in Finance department, 20 in Technology
department and 30 in Human Resource department. Identify the type of organisational structure being followed
by the company.
(a) Functional structure
(b) Divisional structure
(c) Informal structure
(d) None of the above

Answer/Explanation
Answer: a
Explanation:
(a) as people are grouped on the basis of functions

15. Which of the following is not a merit of divisional structure?

(a) It promotes product specialisation.
(b) It ensures that different functions get due attention.
(c) It promotes flexibility and faster decision making.
(d) It facilitates expansion and growth as new divisions.

Answer
Answer: b

16. Which of the following is not a demerit of divisional structure?

(a) It is an expensive structure to maintain, since there may be a duplication of activities across products.
(b) All functions related to a particular product are integrated in one department.
(c) Conflict may arise among different divisional heads due to different interests.
(d) Authority provided to the managers to supervise all activities related to a particular division may lead to
undesirable consequences.

Answer
Answer: b

17. Identify the correct sequence of steps to be followed in an organising process.

(a) Departmentalisation, Establishing reporting relationships, Assignment of duties, Identification and division of
work
(b) Identification and division of work, Departmentalisation, Assignment of duties, Establishing reporting
relationships
(c) Identification and division of work, Assignment of duties, Departmentalisation, Establishing reporting
relationships
(d) Identification and division of work, Establishing reporting relationships, Departmentalisation, Assignment of
duties

Answer
Answer: b

18. Which of the following is not a demerit of functional structure?

(a) It places more emphasis on the objectives pursued by a functional head than on overall enterprise objectives.
(b) It may lead to conflict of interests among departments due to varied interests.
(c) It leads to occupational specialisation.
(d) It may lead to difficulty in co-ordination among functionally differentiated departments.

Answer/Explanation
Answer: c
Explanation:
(c) it is a merit

19. Lakshay has been given the task of arranging for five-day conference for foreign delegates. In order to ensure
smooth functioning of the event, he has made two people as co-ordinators to take care of activities related to
registration and refreshment. Identify the function of management being carried out by Lakshay.
(a) Planning
(b) Staffing
(c) Organising
(d) Directing

Answer
Answer: c

20. Which of the following is not a feature of formal organisation?

(a) It specifies the relationships among various job positions.
(b) The standards of behaviour of employees are evolved from group norms.
(c) It is deliberately designed by the top management.
(d) It places less emphasis on interpersonal relationships among the employees.

Answer/Explanation
Answer: b
Explanation:
(b) it relates to informal organisation

21. Which of the following is not a merit of formal organisation?

(a) It is easier to fix responsibility for mistakes.
(b) Scalar chain of command is followed.
(c) It leads to effective achievement of organisational goals.
(d) It leads to faster spread of information and rapid feedback.

Answer/Explanation
Answer: d
Explanation:
(d) it relates to informal organisation

22. Which of the following is not a demerit of formal organisation?

(a) It may lead to procedural delays.
(b) It may lead to spreading of rumours.
(c) It emphasises on following rigidly laid down policies.
(d) It places more importance on work rather than the relationships.
Answer/Explanation
Answer: b
Explanation:
(b) it relates to informal organisation

23. Which of the following is not a feature of informal organisation?

(a) It originates from within the formal organisation.
(b) The standards of behaviour evolve from group norms.
(c) Scalar chain of command is not followed.
(d) It is deliberately created by the management.

Answer/Explanation
Answer: d
Explanation:
(d) it relates to formal organisation

24. Which of the following is not a merit of informal organisation?

(a) It leads to faster spread of information and speedy feedback.
(b) It helps to fulfill the social needs of the members.
(c) It .does not fulfill inadequacies in the formal organisation.
(d) All of the above

Answer/Explanation
Answer: c
Explanation:
(c) it does fulfill the inadequacies of formal organisation

25. Which of the following is not a demerit of informal organisation?

(a) It leads to spreading of rumours.
(b) It gives more importance to structure and work.
(c) It may restrict implementation of changes within the organisation.
(d) It puts psychological pressure on members to conform to group expectations, even if they are against the
interest of organisation.

Answer/Explanation
Answer: b
Explanation:
(b) it relates to formal organisation

26. Which of the following is not an element of delegation?

(a) Responsibilty
(b) Authority
(c) Accountability
(d) Decentralisation

Answer
Answer: d
27. It arises from the established scalar chain which links the various job positions and levels of an organisation.
(b) Authority
(d) All of the above
(b) Top to bottom
(d) None of the above

Answer
Answer: b

28. The authority flows from as we go higher up in the management hierarchy.

(a) Bottom to top
(b) Decreases
(c) In all directions
(d) None of the above

Answer/Explanation
Answer: b
Explanation:
(b) a superior has authority over subordinate

29. The scope of authority _________ as we go higher up in the management hierarchy.

(a) Increases
(b) Decreases
(c) Remains same
(d) None of the above

Answer
Answer: a

30. It is the obligation of a subordinate to properly perform the assigned duty.

(a) Responsibility
(b) Authority
(c) Accountability
(d) All of the above

Answer
Answer: a

31. The responsibility flows

(a) In all directions
(b) Downwards
(c) Upwards
(d) None of the above

Answer/Explanation
Answer: c
Explanation:
(c) a subordinate is responsible to his superior

32. Authority granted to an employee should be

(a) More than the responsibility entrusted to him
(b) Less than the responsibility entrusted to him
(c) Equal to the responsibility entrusted to him
(d) All of the above

Answer
Answer: c

33. It helps the managers to ensure that their subordinate discharges his duties properly.
(a) Responsibility
(b) Authority
(c) Accountability
(d) All of the above

Answer/Explanation
Answer: c
Explanation:
(c) accountability is answerability

34. The accountability flows

(a) In all directions
(b) Downwards
(c) Upwards
(d) None of the above

Answer/Explanation
Answer: c
Explanation:
(c) a subordinate is accountable to his superior

35. Which of the following can be delegated?

(a) Responsibility
(b) Authority
(c) Accountability
(d) All of the above

Answer
Answer: b
36. Which of the following cannot be delegated?
(a) Responsibility and accountability
(b) Authority and responsibility
(c) Accountability and responsibility
(d) All of the above

Answer
Answer: a

37. Authority arises from

(a) Responsibility
(b)Formal position
(c) Accountability
(d) All of the above

Answer
Answer: a

38. Responsibility is derived from

(a) Authority
(b)Formal position
(c) Accountability
(d) All of the above

Answer
Answer: a

39. Accountability is derived from

(a) Authority
(b) Formal position
(c) Responsibility
(d) All of the above

Answer
Answer: c

40. When decision-making authority is retained organisation is said to be by higher management levels, an
(a) Decentralised
(b) Centralised
(c) Fragmented
(d) None of the above

Answer
Answer: b
Chapter 6 Staffing
1. Which of the following is not an external source of recruitment
(a) Campus recruitment
(b) Promotion
(c) Casual callers
(d) Direct recruitment

Answer/Explanation
Answer: b
Explanation:
(b) it is an internal source

2. It is a good source of filling the vacancies with employees from over staffed departments.
(a) Transfer
(b) Promotion
(c) Placement agencies
(d) Government exchanges

Answer/Explanation
Answer: a
Explanation:
(a) as the employees may be transferred from an overstaffed department to an under staffed
department

3. Under this method of recruitment, a notice is placed on the notice board of the organisation
containing the details of the jobs available.
(a) Casual callers
(b) Labour contractors
(c) Recommendations of employees
(d) None of the above

Answer/Explanation
Answer: d
Explanation:
(d) direct recruitment
4. Which of the following is an internal source of recruitment?
(a) Transfer
(b) Advertising on television
(c) Casual callers
(d) Labour contractors

Answer/Explanation
Answer: a
Explanation:
(a) it is an internal source

5. Which of the following is not an advantage of using external sources of recruitment?

(a) Qualified personnel
(b) Wider choice
(c) Fresh talent
(d) Economical source

Answer/Explanation
Answer: d
Explanation:
(d) it involves high cost

6. Which of the following is not a disadvantage of using external sources of recruitment?

(a) Dissatisfaction among existing staff
(b) Lengthy process
(c) The scope for induction of fresh talent is reduced
(d) Costly process

Answer/Explanation
Answer: c
Explanation:
(c) it is an advantage
7. It is a career oriented process.
(a) Training
(b) Development
(c) Selection
(d) Recruiment

Answer/Explanation
Answer: c
Explanation:
(c) it is for an individual

8. It is the process of management which is concerned with obtaining, utilising and maintaining a
satisfactory and satisfied work force.
(a) Planning
(b) Organising
(c) Staffing
(d) Directing

Answer
Answer: c

9. This analysis would enable an assessment of the number and types of human resources necessary
for the performance of various jobs and accomplishment of organisational objectives.
(a) Breakeven analysis
(b) Workload analysis
(c) Workforce analysis
(d) All of the above

Answer
Answer: b

10. This analysis would reveal the number and type of human resource available within the
organisation.
(a) Workload analysis
(b) Breakeven analysis
(c) Workforce analysis
(d) All of the above

Answer
Answer: c

11. Workforce analysis would enable to know whether the organisation is

(a) Understaffed
(b) Overstaffed
(c) Optimally staffed
(d) All of the above

Answer
Answer: d

12. It refers to the process of searching for prospective employees and stimulating them to apply for
jobs in the organisation.
(a) Selection
(b) Training
(c) Recruitment
(d) Orientation

Answer
Answer: c

13. It is the process of choosing from the pool of the prospective job candidates developed at the
stage of recruitment.
(a) Selection
(b) Training
(c) Recruitment
(d) Orientation

Answer
Answer: a
14. It is the process of introducing the selected employee to other employees and familiarising him
with the rules and policies of the organisation.
(a) Orientation
(b) Selection
(c) Training
(d) Recruitment

Answer
Answer: a

15. It refers to the employee occupying the position or post for which the person has been selected.
(a) Orientation
(b) Selection
(c) Placement
(d) Recruitment

Answer
Answer: c

16. The important aspects of staffing include

(a) Selection
(b) Training
(c) Recruitment
(d) All of the above

Answer
Answer: d

17. The various activities involved in the process of recruitment include

(a) Identification and assessment of the different sources of recruitment
(b) Selecting the most suitable source or sources
(c) Inviting applications from the prospective candidates
(d) All of the above
Answer
Answer: d

18. It refers to the horizontal movement of employees along the organisational structure,
(a) Transfer
(b) Promotion
(c) Training

Answer
Answer: a

19. Promotion leads to

(a) Shifting an employee to a higher position
(b) Entrusting higher responsibilities
(c) Increase in status
(d) All of the above

Answer
Answer: d

20. When the employees are given promotion, their

(a) Motivation level improves
(b) Loyalty increases
(c) Job satisfaction level is higher
(d) All of the above

Answer
Answer: d

21. It is suitable for filling casual vacancies when work load is high or when certain number of
permanent workers are absent.
(a) Direct recruitment
(b) Labour contractors
(c) Advertising on television
(d) Placement agencies and management consultants

Answer
Answer: a

22. Under this method of recruitment, an organisation maintains a database of unsolicited applicants
in their offices.
(a) Direct recruitment
(b) Casual callers
(c) Labour contractors
(d) Advertising on television

Answer
Answer: b

23. This source of recruitment basically specialises in filling up the vacancies at the middle level
and top level management.
(a) Direct recruitment
(b) Labour contractors
(c) Advertising on television
(d) Placement agencies and management consultants

Answer
Answer: d

24. It is a very useful source of recruitment for hiring casual or ‗badli‘ workers to whom
compensation is provided on a daily wage basis.
(a) Placement agencies and management consultants
(b) Direct recruitment
(c) Labour contractors
(d) Advertising on television

Answer
Answer: b
25. Many big organisations maintain a close liaison with the universities, vocational schools and
management institutes to recruit qualified personnel for various jobs. This is known as
(a) Placement agencies and management consultants
(b) Direct recruitment
(c) Labour contractors
(d) Campus recruitment

Answer
Answer: d

26. This test is an indicator of a person‘s learning ability or the ability to make decisions and
judgements.
(a) Trade test
(b) Personality test
(c) Intelligence test
(d) Aptitude test

Answer
Answer: c

27. It is a measure of an individual‘s potential for learning new skills.

(a) Trade test
(b) Personality test
(c) Intelligence test
(d) Aptitude test

Answer
Answer: d

28. These tests measure the existing skills of the individual in terms of the level of knowledge and
proficiency in the area of professions or technical training.
(a) Trade test
(b) Personality test
(c) Intelligence test
(d) Aptitude test

Answer
Answer: a

29. These tests are used to know the pattern of interests or involvement of a person.
(a) Trade test
(b) Personality test
(c) Intelligence test
(d) Interest test

Answer
Answer: d

30. Which of the following is not a benefit of training and development to an organisation?
(a) Help to avoid wastage of efforts and money
(b) Enhance employee productivity
(c) Lead to better career of the individual
(d) Reduce absenteeism and increase employee turnover

Answer
Answer: b

31. Which of the following is not an on-the-job method of training?

(a) Apprenticeship training
(b) Induction training
(c) Internship training
(d) Vestibule training

Answer
Answer: d
32. Under this method of training, a trainee is put under the guidance of a master worker,
(a) Internship training
(b) Vestibule training
(c) Apprenticeship training
(d) Induction training

Answer
Answer: c

33. This type of training method is adopted when employees have to handle sophisticated machinery
and equipment at their workplace.
(a) Apprenticeship training
(b) Induction training
(c) Internship training
(d) Vestibule training

Answer
Answer: d

34. This type of training is provided to the new employees of an organisation in order to familiarise
them with the organisational rules and policies, their superior and subordinate, and so on.
(a) Vestibule training
(b) Apprenticeship training
(c) Internship training
(d) Induction training

Answer
Answer: d

35. Which of the following activities lie within the scope of Human Resource Department?
(a) Formulating compensation and incentive plans
(b) Ensuring healthy labour relations and union management relations
(c) Creating provision for social security and welfare of employees
(d) All of the above

Answer
Answer: d

36. Identify the correct sequence of the steps involved in the staffing process
(a) Recruitment, Estimating the Manpower Requirements, Placement and Orientation, Selection
(b) Estimating the Manpower Requirements, Selection, Placement and Orientation, Recruitment
(c) Selection, Estimating the Manpower Requirements, Recruitment, Placement and Orientation
(d) Estimating the Manpower Requirements, Recruitment, Selection, Placement and Orientation

Answer
Answer: d

37. Identify the correct sequence of the steps involved in the selection process
(a) Medical Examination, Contract of Employment, Reference and Background checking, Selection
Decision, Job Offer
(b) Reference and Background checking, Selection Decision, Contract of Employment, Medical
Examination, Job Offer
(c) Job Offer, Reference and Background checking, Selection Decision, Medical Examination,
Contract of Employment
(d) Reference and Background checking, Selection Decision, Medical Examination, Job Offer,
Contract of Employment

Answer
Answer: d

38. Lalit has always been fascinated by the hand woven textile designs. Therefore, he decided to
become a weaver. He was told that in order to understand and leam this workmanship, he will have
to work under the guidance of a master worker for a certain number of years. Identify the type of
training being described in the given lines.
(a) Vestibule training
(b) Apprenticeship training
(c) Internship training
(d) Induction training

Answer
Answer: b
39. Kundan Lai joined a food processing unit as a factory worker. Since he was expected to work on
sophisticated machinery, he was asked to undergo a special training. Identify the training method
with reference to above lines.
(a) Vestibule training
(b) Apprenticeship training
(c) Internship training
(d) Induction training

Answer
Answer: a

40. In the job application form for the post of Production Manager, Ketan had given details of his
present employer. The company contacted the General Manager of his present company to establish
Ketan‘s credibility. Identify the step in selection process being described in the above lines.
(a) Job offer
(b) Contract of employment
(c) Reference and background checking
(d) Selection decision

Answer
Answer: c

41. Aruna applied for the post of an art and craft teacher in a reputed school in Delhi. After
successfully clearing the tests and the interview, she was offered an employment contract containing
the terms and conditions, and the date of joining. Identify the steps in the staffing process being
described in the above lines.
(a) Reference and background checking
(b) Selection decision
(c) Job offer
(d) Contract of employment

Answer
Answer: c
42. Roshni Limited is a company dealing in lights and illumination. Whenever the . company is in
need of daily wage workers, a notice is placed on the factory gate for
the same. Identify the source of recruitment being used by the company.
(a) Placement agencies and management consultants
(b) Direct recruitment
(c) Labour contractors
(d) Advertising

Answer
Answer: b

43. When the Principal of Golden Life Public School was on the verge of retirement, the
management of the school contacted a specialised business firm in order to fill up the vacancy.
Identify the source of recruitment being used by the management.
(a) Labour contractors
(b) Advertising
(c) Placement agencies and management consultants
(d) Direct recruitment

Answer
Answer: c

44. Rakesh works as a software engineer in an IT company. He provided the reference of close
friend Rohan to the Human Resource Department for the post of Senior Business Development
Manager. Rohan was duly selected for the concerned post by the company. Identify the source of
recruitment being used by the company.
(a) Advertising
(b) Placement agencies and management consultants
(c) Recommendation of employees
(d) Direct recruitment

Answer
Answer: c

45. When Jaskaran Singh applied for the post of Computer teacher in a school in Bhubaneswar, he
was asked to prepare a powerpoint presentation on a particular topic during selection procedure.
Identify the type of selection test being mentioned in the above lines,
(a) Trade test
(c) Intelligence test
(b) Personality test
(d) Interest test

Answer
Answer: a

Chapter 7 Directing
1. It is very difficult to detect the source of such communication.
(a) Upward communication
(b) Vertical communication
(c) Lateral communication
(d) Informal communication

Answer/Explanation
Answer: d
Explanation:
(d) As it leads to spreading of rumours

2. Which of the following is not a type of semantic barriers?

(a) Badly expressed message
(b) Unclarified assumptions
(c) Technical jargon
(d) Premature evaluation

Answer/Explanation
Answer: d
Explanation:
(d) It is a type of psychological barrier
3. Which of the following is not a type of psychological barriers?
(a) Premature evaluation
(b) Lack of attention
(c) Fear of challenge to authority
(d) Distrust

Answer/Explanation
Answer: c
Explanation:
(c) It is a type of personal barrier

4. Which of the following is not a type of personal barrier?

(a) Fear of challenge to authority .
(b) Unwillingness to communicate
(c) Loss by transmission and poor retention
(d) Lack of proper incentive

Answer/Explanation
Answer: c
Explanation:
(c) It is a type of psychological barrier

5. It refers to the process of instructing, guiding, counselling, motivating and leading j people in the
organisation to achieve their objectives.
(a) Planning
(b) Organising
(c) Staffing
(d) Directing

Answer
Answer: d

6. Which of the following is not an element of directing?

(a) Supervision
(b) Communication
(c) Leadership
(d) Inspection

Answer
Answer: d

7. While other functions prepare a setting for action, name the function that initiates action in the
organisation.
(a) Planning
(b) Organising
(c) Staffing
(d) Directing

Answer
Answer: d

8. Identify the level at which the directing function takes place in an organisation?
(a) Top level management
(b) Middle level management
(c) Lower level management
(d) All of the above

Answer
Answer: d

9. It is defined as the process of guiding the efforts of employees and other resources to accomplish
the desired objectives.
(a) Supervision
(b) Communication
(c) Leadership
(d) Inspection

Answer
Answer: a
10. It means the process of making subordinates to act in a desired manner to achieve certain
organisational goals.
(a) Supervision
(b) Communication
(c) Leadership
(d) Motivation

Answer
Answer: c

11. Effective motivation in the organisation does not contribute towards

(a) Developing performance levels of employees
(b) Helping to reduce employee turnover
(c) Resistance to changes in the organisation
(d) All of the above

Answer
Answer: c

12. These needs are most basic in the hierarchy of motivation theory and correspond to primary
needs.
(a) Self Actualisation Needs
(b) Basic Physiological Needs
(c) Security Needs
(d) Belonging Needs

Answer
Answer: b

13. Mohit recently got a raise in his salary due to annual increment. Which of his human needs is
being satisfied through this?
(a) Security Needs
(b) Belonging Needs
(c) Self Actualisation Needs
(d) Basic Physiological Needs

Answer
Answer: d

14. Which of the following is not an assumption of Maslow‘s theory?

(a) People‘s behaviour is not based on their needs.
(b) Satisfaction of such needs influences their behaviour.
(c) A satisfied need can no longer motivate a person; only next higher level need can motivate him.
(d) A person moves to the next higher level of the hierarchy only when the lower need is satisfied.

Answer
Answer: a

15. It refers to all measures which are used to motivate people to improve performance,
(a) Leadership
(b) Motivation
(c) Incentives
(d) Communication

Answer
Answer: c

16. Which of the following is not an example of financial incentive?

(a) Perquisites
(b) Job Enrichment
(c) Profit Sharing
(d) Co-partnership

Answer
Answer: b
17. Which of the following is not an example of non-financial incentive?
(a) Career Advancement Opportunity
(b) Perquisites
(c) Status
(d) Organisational Climate

Answer
Answer: b

18. Ashutosh works as a manager in Kuber Ltd. Besides the salary, the company offers him benefits
such as free housing, medical aid and education to the children, etc. Identify the type of incentive
being offered to him.
(a) Perquisites
(b) Job Enrichment
(c) Co-partnership
(d) Pay and allowances

Answer
Answer: a

19. On joining Kartar Ltd. as Chief Financial Officer, Madhumita was allotted 500 shares of the
company. Identify the type of incentive being described.
(a) Perquisites
(b) Retirement Benefits
(c) Co-partnership
(d) Pay and allowances

Answer
Answer: c

20. Boom Limited gives due weightage to the perquisites and prestige of job so that the designation
helps to satisfy the psychological, social and esteem needs of an individual. Identify the type of
incentive being described in the above lines.
(a) Employee empowerment
(b) Job security
(c) Status
(d) Perquisites

Answer
Answer: c

21. On joining Foster Public School as a Physical Education teacher, Vikramrealised that he did not
have any freedom to introduce any changes in the sports activities being : carried out in the school.
Identify the incentive which was being ignored by the school.
(a) Organisational climate
(b) Job security
(c) Career advancement opportunities
(d) Employee recognition program

Answer
Answer: a

22. On the occasion of the Founders Day of the firm, Veena was felicitated with the certificate of
best performer as a Business Development Manager. Identify the type of incentive being described
in the above lines.
(a) Career advancement opportunities
(b) Employee recognition program
(c) Organisational climate
(d) Job security

Answer
Answer: b

23. Ishan works as an Accounts Officer in Fabrications Limited. He also feels very proud of the fact
that he is the incharge of recreation committee in his office. Identify the type of incentive being
offered to Ishan.
(a) Career advancement opportunities
(b) Employee recognition program
(c) Organisational climate
(d) Employee participation
Answer
Answer: d

24. It is the process of influencing the behaviour of people by making them strive voluntarily
towards achievement of organisational goals.
(a) Supervision
(b) Communication
(c) Leadership
(d) Motivation

Answer
Answer: c

25. As the general manager of an e-commerce company, Gagan maintains good interpersonal
relations with followers and also motivates them to contribute for y ‗ achievingorganisational goals.
Identify the concept being described in the above lines.
(a) Supervision
(b) Communication
(c) Determination
(d) Leadership

Answer
Answer: d

26. Which of the following is not a feature of leadership?

(a) It shows ability of an individual to influence others.
(b) It leads to achievement of organisational goals.
(c) Leadership is one-time process.
(d) It leads to desired change in the organisation.

Answer
Answer: c
27. It refers to the process of exchange of ideas, views, facts, feelings etc., between or among people
to create common understanding.
(a) Supervision
(b) Communication
(c) Motivation
(d) Leadership

Answer
Answer: b

28. Identify the correct sequence of steps involved in the communication process.
(a) Sender, Message, Encoding, Media, Decoding, Receiver, Feedback
(b) Sender, Decoding, Receiver, Feedback, Message, Encoding, Media
(c) Sender, Message, Encoding, Media, Decoding, Receiver, Feedback
(d) Sender, Media, Decoding, Receiver, Message, Encoding, Feedback

Answer
Answer: c

29. Formal communication may take place between

(a) Superior and subordinate
(b) Subordinate and superior
(c) Two managers at the same level
(d) All of the above

Answer
Answer: d

30. Upward communications refer to flow of communication from

(a) Subordinate to superior
(b) One departmental manager to another
(c) Superior to subordinate
(d) All of the above

Answer
Answer: a
31. Downward communications refer to flow of communication from
(a) One departmental manager to another
(b) Superior to subordinate
(c) Subordinate to superior
(d) All of the above

Answer
Answer: b

32. Lateral communication takes place from

(a) First to second division of the same organisattion
(b) Superior to subordinate
(c) Subordinate to superior
(d) All of the above

Answer
Answer: a

33. Which of the following is not a type of communication barriers?

(a) Semantic barriers
(b) Psychological barriers
(c) Rational barriers
(d) Organisational barriers

Answer
Answer: c

34. Which of the following ways help in improving the communication effectiveness?
(a) Ensuring proper feedback
(b) Being a good listener
(c) Ensuring follow up patience
(d) All of the above
Answer
Answer: d

35. As the incharge of a small scale factory manufacturing glassware, Raghu guides his subordinates
and clarifies their doubts in performing a task, so that they are able to achieve the work targets given
to them. Identify the function of management being described in the above lines.
(a) Planning
(b) Staffing
(c) Directing
(d) Organising

Answer
Answer: c

36. Yajur, as a Project Manager, is able to assess the true potential of his subordinates and
constantly motivates them to realise their full potential. Identify the element of directing being
described in the above lines.
(a) Leadership
(b) Communication
(c) Supervision
(d) Motivation

Answer
Answer: a

37. Suman works as a Project Co-ordinator in an export house. Whenever the workload is high, she
is able to convince her team by explaining to them the purpose, providing training and motivating
them with additional rewards so as to be able to win their wholehearted co-operation. Identify the
element of directing being described in the above lines.
(a) Supervision
(b) Motivation
(c) Leadership
(d) Communication

Answer
Answer: c
38. As an employee of an automobile company, Suraj has always been very lazy and evasive. In
order to change his behaviour, his boss decided to give him an incentive. Identify the feature of
motivation being described in the above lines.
(a) Motivation is an internal feeling.
(b) Motivation produces goal-directed behaviour.
(c) Motivation is a complex process.
(d) None of the above

Answer
Answer: b

39. Radhika runs a confectionary in a local market. In order to make the workers in the
.Confectionary work optimally, she on one hand provides them overtime wages and on the other
hand imposes penalty, if required, by deducting the wages. Identify the feature of motivation being
described in the above lines.
(a) Motivation is an internal feeling.
(b) Motivation produces goal-directed behaviour.
(c) Motivation is a complex process.
(d) Motivation can be either positive or negative.

Answer
Answer: d

40. In order to motivate the workers in the factory to work overtime, Manoj decided to provide
additional wages to the workers. On knowing this, a worker in his factory, Madhur, was very happy,
whereas Raju was disappointed as he preferred to go back home on time rather than working for
overtime wages. Identify the feature of motivation being described in the above lines.
(a) Motivation is an internal feeling.
(b) Motivation produces goal-directed behaviour.
(c) Motivation is a complex process.
(d) Motivation can be either positive or negative.

Answer
Answer: c
41. Identify the correct sequence of steps involved in the motivation process.
(a) Tension, drives, search behaviour, unsatisfied need, satisfied behaviour, reduction of tension
(b) Unsatisfied need, tension, drives, search behaviour, satisfied behaviour, reduction of tension
(c) Drives, search behaviour, unsatisfied need, tension, satisfied behaviour, reduction of tension
(d) Search behaviour, reduction of tension, unsatisfied need, tension, drives, satisfied behaviour

Answer
Answer: b

42. Esha was facing the problem of high labour turnover in her firm. On the advice of her friend, she
introduced special benefits for the employees, which helped her to retain talented people in the
organisation. Identify the related point of importance of motivation.
(a) Motivation helps to improve performance levels of employees.
(b) Motivation helps to reduce employee turnover.
(c) Motivation helps to reduce absenteeism in the organisation.
(d) Motivation helps to mould the attitudes of employees.

Answer
Answer: b

43. Yamini received a special gold coin from her school management for exceptionally good board
result of her students in her subject. Identify the need of Yamini being fulfilled as per Maslow‘s
Need Heirarchy Theory.
(a) Esteem Needs
(b) Belonging Needs
(c) Self Actualisation Needs
(d) Basic Physiological Needs

Answer
Answer: a

44. Jay and Lai work in a garment factory. Jay always earns a higher wage than Lai, as he produces
more units of output. Identify the type of financial incentive being adopted by the company.
(a) Perquisites
(b) Productivity linked wage incentives
(c) Co-partnership
(d) Pay and allowances

Answer
Answer: b

45. During the year 2018, Halla Walla Limited made surplus profits due to growing reputation of
the business as a result of sincerity of its employees. In order to give due recognition to its
employees and motivate them to continue with the good work, the company decided to give a
certain percentage of profits to them. Identify the type of financial incentive being adopted by the
company.
(a) Perquisites
(b) Productivity linked wage incentives
(c) Co-partnership
(d) Profit sharing

Answer
Answer: d

46. Om Limited adopts a systematic performance appraisal system which provides opportunity to
employees to improve their skills and be promoted to the higher level jobs. Identify the type of
incentive being adopted by the company.
(a) Employee recognition programme
(b) Organisational climate
(c) Career advancement opportunities
(d) Job security

Answer
Answer: c

47. Dheeraj Madan works as a Human Resource Manager in Busybee Limited. He gives due care in
designing jobs, so that it offers a meaningful work experience by assuming a diversity of work
content requiring higher level of knowledge. Identify the type of incentive being adopted by the
company.
(a) Employee recognition programme
(b) Organisational climate
(c) Career advancement opportunities
(d) Job enrichment

Answer
Answer: c

48. On the successful completion of two years in a company, Harsh received a letter confirming his
job as permanent employee. Identify the need of Harsh being fulfilled as per Maslow‘s Need
Heirarchy Theory.
(a) Esteem Needs
(b) Security Needs
(c) Self Actualisation Needs
(d) Basic Physiological Needs

Answer
Answer: b

49. Identify the style of leadership in which the superior uses file forces from within the groups in
order to establish control.
(a) Autocratic leadership
(b) Democratic leadership
(c) Laissez-faire leadership
(d) Authoritarian leadership

Answer
Answer: b

Chapter 8 Controlling
1. Which of the following is not an importance of controlling function?
(a) It ensures order and discipline.
(b) It restricts co-ordination in action.
(c) It helps in judging accuracy of standards.
(d) It improves employee motivation.
Answer/Explanation
Answer: b
Explanation:
(b) It facilitates co-ordination in action

2. Which of the following statements does not highlight the relationship between planning and
controlling?
(a) Planning and controlling are separable twins of management.

(b) Planning without controlling is meaningless, controlling without planning is blind.

(c) Planning is prescriptive, controlling is evaluative.
(d) Planning and controlling are interrelated and interdependent.
Answer/Explanation
Answer: a
Explanation:
(a) Planning and controlling are inseparable twins

3. Om Prakash has set up a small business unit for the manufacturing of detergent. In order to
market the detergent in the local residential areas, he has appointed a team of ten salesmen. Each
salesman is expected to sell at least 200 units of the detergent within a week‘s time. Identify the
point of importance of controlling being highlighted in the above case.
(a) Controlling helps in judging accuracy of standards.
(b) It ensures efficient use of resources.
(c) It helps in improving employee motivation.
(d) It facilitates co-ordination in action.

Answer/Explanation
Answer: c
Explanation:
(c) By making employees aware of the expected performance

4. It is the process of ensuring that events confirm to plans.

(a) Planning
(b) Controlling
(c) Organising
(d) Directing

Answer
Answer: b

5. The controlling function is performed by

(a) Top level management
(b) Lower level management
(c) Middle level management
(d) All of the above

Answer
Answer: d

6. Controlling function brings the management cycle back to the

(a) Organising function
(b) Directing function
(c) Planning function
(d) None of the above

Answer
Answer: c

7. Deviations are said to be positive in nature when

(a) Planned performance is more than the actual performance

(b) Actual performance is more than the planned performance

(c) Both planned and actual performances are same
(d) None of the above
Answer
Answer: b
8. Which of the following statements is true with respect to controlling function?
(a) It is a forward looking function.
(b) Is a backward looking function.
(c) Both (a) and (b)
(d) None of the above

Answer
Answer: c

9. Identify the correct sequence of the steps involved in the controlling process.
(a) Measurement of actual performance, Taking corrective action, Setting performance standards,
Comparison of actual performance with standards, Analysing deviations

(b) Comparison of actual performance with standards, Setting performance standards. Measurement
of actual performance, Analysing deviations, Taking corrective action
(c) Setting performance standards, Measurement of actual performance, Comparison of actual
performance with standards, Analysing deviations, Taking corrective action
(d) Taking corrective action, Measurement of actual performance, Comparison of actual
performance with standards, Analysing deviations, Setting performance standards
Answer
Answer: c

10. Which of the following is a technique used for measuring actual performance?
(a) Random sampling
(b) Personal observation
(c) Performance reports
(d) All of the above

Answer
Answer: d

11. The comparison of actual performance with the planned performance becomes easier if the
standards are set in
(a) Qualitative terms
(b) Quantitative terms
(c) Either of the above
(d) None of the above

Answer
Answer: b

12. This concept of Control Management is based on the belief that if you try to control everything,
you may end up controlling nothing.
(a) Critical point control
(b) Key result areas
(c) Management by exception
(d) Deviations

Answer
Answer: c

13. When the deviations between the actual performance and the planned performance are within
the limits
(a) A limited corrective action is required
(b) No corrective action is required
(c) A major corrective action is required
(d) None of the above

Answer
Answer: b

14. In an artificial plants manufacturing unit, the standard output set for a worker is 50 units per day.
Dinesh produces 48 units in one day. In the given case, the value of deviation is
(a) -2
(b) + 2
(c) 98
(d) None of the above

Answer
Answer: a
15. The need for the controlling function is felt in
(a) Business organisations
(b) Political organisations
(c) Social organisations
(d) All of the above

Answer
Answer: d

16. Controlling is known as a backward-looking function because

(a) It relates to future course of action.
(b) It is like a post-mortem of the past activities
(c) To find out deviation, it aims at improving future performance.
(d) All of the above

Answer
Answer: b

17. Reducing the workers, absenteeism in a factory by 20% is an example of

(a) Quantitative standard
(b) Qualitative standard
(c) Deviation
(d) None of the above

Answer
Answer: a

18. Yash runs a logistic company. The Tour Incharges of each trip in the company are expected to
submit a report to the Event Manager on the completion of every trip. Identify the step in the
controlling process being described in the above lines.
(a) Setting of standards
(b) Measurement of actual performance
(c) Taking corrective action
(d) Analysing the deviations

Answer
Answer: b

19. In a marketing firm, the Financial Manager pays more attention towards an increase of 3% in the
marketing cost as compared to a 15% increase in the courier expenses. Identify the concept being
used by the manager.
(a) Management by exception
(b) Critical point control
(c) Corrective action
(d) None of the above

Answer
Answer: b

Chapter 9 Financial Management

1. Business finance is needed to
(a) Establish a business
(b) Run a business
(c) Expand a business
(d) All of the above

Answer
Answer: d

2. Which of the following is not a tangible asset?

(a) Machinery
(b) Trademarks
(c) Factories
(d) Offices

Answer
Answer: b

3. Financial Management aims at

(a) Reducing the cost of funds procured
(b) Keeping the risk under control
(c) Achieving effective deployment of such funds
(d) All of the above

Answer
Answer: d

4. Primary aim of financial management is to

(a) Maximise shareholder‘s wealth
(b) Wealth maximisation concept
(c) Maximisation of the market value of equity shares
(d) All of the above

Answer
Answer: d

5. This decision relates to how the firm‘s funds are invested in different assets,
(a) Investment decision
(b) Financing decision
(c) Dividend decision
(d) None of the above

Answer
Answer: a

6. Purchasing a new machine to replace an existing one is an example of

(a) Financing decision
(b) Dividend decision
(c) Working capital decision
(d) Capital budgeting decision

Answer
Answer: d

7. The size of assets, the profitability and competitiveness are all affected by
(a) Working capital decision
(b) Capital budgeting decision
(c) Financing decision
(d) Dividend decision

Answer
Answer: b

8. These decisions affect the liquidity as well as profitability of a business.

(a) Capital budgeting decision
(b) Financing decision
(c) Working capital decision
(d) Dividend decision

Answer
Answer: c

9. Dev has two projects A and B in hand. The same amount of risk is involved in both the projects.
If the rate of return of project A and B is 20% and 15% respectively, then under normal
circumstance, which of the two projects is likely to be selected?
(a) Project A
(b) Project B
(c) Both project A and project B
(d) None of the above

Answer
Answer: a
10. This decision is about the quantum of finance to be raised from various long-term sources.
(a) Investment decision
(b) Financing decision
(c) Dividend decision
(d) Capital budgeting decision

Answer
Answer: b

11. The inability of a business to meet its fixed financial obligations, like payment of interest, is
known as
(a) Business risk
(b) Financial risk
(c) Long-term risk
(d) Market risk

Answer
Answer: b

12. The overall financial risk depends upon the

(a) Proportion of debt in the total capital
(b) Proportion of equity in the total capital
(c) Both of the above
(d) None of the above

Answer
Answer: a

13. This decision determines the overall cost of capital and the financial risk of the enterprise,
(a) Dividend decision
(b) Capital budgeting decision
(c) Investment decision
(d) Financing decision
Answer
Answer: d

14. Which of the following sources of capital should not be selected by a business if its fixed cost is
high?
(a) Equity shares
(b) Preference shares
(c) Debentures
(d) All of the above

Answer
Answer: c

15. When the stock market index is rising, a company may issue in order to meet its financial
requirements.
(a) Debentures
(b) Bonds
(c) Equity shares
(d) None of the above

Answer
Answer: c

16. When the stock market is bearish, a company may depend upon in order to raise the required
funds.
(a) Debentures
(b) Equity shares
(c) Preference shares
(d) All of the above

Answer
Answer: a
17. Name the financial decision which relates to disposal of profits.
(a) Investment decision
(b) Financing decision
(c) Dividend decision
(d) Capital budgeting decision

Answer
Answer: c

18. Under which of the following circumstances a company is not likely to declare a higher
dividend?
(a) When the earnings of the company are high
(b) When a company has a lucrative forthcoming business opportunity
(c) When the cash flow position of the company is strong
(d) None of the above

Answer
Answer: b

19. A company is likely to declare higher dividends if

(a) Tax rates are high
(b) Tax rates are relatively lower
(c) Tax rate has no effect on dividend declaration
(d) None of the above

Answer
Answer: b

20. It is essentially the preparation of a financial blueprint of an organisation‘s future operations.

Identify the related concept.
(a) Financial management
(b) Financial planning
(c) Capital budgeting decisions
(d) Dividend decision

Answer
Answer: b

21. Name the process that enables the management to foresee the fund requirements, both the
quantum as well as the timing.
(a) Financial management
(b) Capital budgeting decisions
(c) Dividend decision
(d) Financial planning

Answer
Answer: d

22. Kapil Limited is a company dealing in ready-to-eat food products. Over the years, the earning
potential of the company has gone up and it enjoys a good reputation. The Financial Manager is
confident of the fact that not just the earnings of the current year, but of our future years are likely to
be high. Identify the related factor of dividend decision being described in the given lines.
(a) Earnings
(b) Stability of earnings
(c) Stability of dividend
(d) Growth prospects

Answer
Answer: c

23. Amber Limited has been experiencing a downfall in its popularity, due to growing competition.
Also the company doesn‘t see any forthcoming viable business expansion opportunities in the near
future. So the management of the company has decided to declare high dividends for the current
financial year. Identify the factor related to dividend decision being described above.
(a) Cash flow position
(b) Growth opportunities
(c) Stability of earnings
(d) Stability of dividends

Answer
Answer: b
24. Gamble Limited is a company dealing in healthcare products. The company is earning high
profits but is short on cash, so it has decided to declare less dividends in the current financial year.
Identify the factor related to dividend decision being described in the above lines.
(a) Preference of shareholders
(b) Earning
(c) Cash flow position
(d) Contractual constraints

Answer
Answer: c

25. Lalit, an experienced stock broker advised his client Prabhu to invest in the shares of Blue Angel
Limited, as the company has declared high dividends since an increase in dividend is perceived as a
good news and stock prices react positively to it. Identify the related factor of dividend decision
being described in the above lines.
(a) Tax rate
(b) Growth prospects
(c) Stock market reactions
(d) Access to capital markets

Answer
Answer: c

26. A company must adhere to the provisions of the Companies Act while taking the dividend
decision. Identify the related factor of dividend decision being mentioned in the above line.
(a) Contractual constraints
(b) Legal constraints
(c) Access to capital market
(d) Preferences of shareholders

Answer
Answer: b
27. While taking a loan from a financial institution, Lokesh Enterprises signed an agreement that
they shall not pay dividend to its shareholder more than 15% until the loan is repaid, or dividend
shall not be declared if the liquidity ratio is found to be less than 1:1. Identify the factor related to
dividend decision being described in the above case.
(a) Access to capital market
(b) Preferences of shareholders
(c) Contractual constraints
(d) Legal constraints

Answer
Answer: c

28. Which of the following is not an objective of financial planning?

(a) Ensuring enough funds are available at the right time
(b) Ensuring excess availability of funds at the right time
(c) Ensuring smooth business operations
(d) All of the above

Answer
Answer: b

29. The financial plans are drawn by taking into consideration

(a) Growth prospects
(b) Performance of the organisation –
(c) Investments
(d) All of the above

Answer
Answer: d

30. The short-term financial plans are known as

(a) Objectives
(b) Budgets
(c) Programs
(d) Policies
Answer
Answer: b

31. Arrange the following steps involved in the process of financial planning in the correct
sequence.
(a) Estimation of expected profit, Preparation of a sales forecast, Preparation of financial statements
(b) Preparation of a sales forecast, Preparation of financial statements, Estimation of expected profit
(c) Preparation of a sales forecast, Estimation of expected profit, Preparation of financial statements
(d) Preparation of financial statements, Estimation of expected profit, Preparation of a sales forecast

Answer
Answer: b

32. Which of the following is not an importance of financial planning?

(a) It helps in avoiding business shocks and surprises.
(b) If helps in co-ordinating various business functions.
(c) If helps to reduce waste, duplication of efforts and gaps in planning.
(d) It tries to delink the present with the future.

Answer
Answer: d

33. Which of the following is not a part of owners‘ funds?

(a) Equity shares
(b) Reserves and surplus
(c) Debentures
(d) Preference shares

Answer
Answer: c
34. Which of the following is not a source of borrowed funds?
(a) Loan from financial institutions
(b) Debentures
(c) Retained earnings
(d) Public deposits

Answer
Answer: c

35. Which of the following statements is not true?

(a) The cost of debt is higher than cost of equity.
(b) The lender‘s risk is lower then equity shareholder‘s risk.
(c) The interest paid on debt is treated as a tax deductible expense.
(d) None of the above

Answer
Answer: a

36. In order to raise an additional capital of ?50 lacs, Yudhister Limited has used debt because
(a) Increased use of debt lowers the overall cost of capital
(b) Decrease in use of debt lowers overall cost of capital
(c) Increase in use of debt increases the overall cost of capital
(d) None of the above

Answer
Answer: a

37. Which of the following statements is not true?

(a) Increased use of debt increases the financial risk of a business.
(b) Increased use of debt decreases the financial risk of a business.
(c) Decrease in use of debt increases the financial risk of a business.
(d) None of the above

Answer
Answer: b
38. Name the decision which affects both the profitability and the financial risk.
(a) Financial planning decision
(b) Capital budgeting decision
(c) Capital structure decision
(d) All of the above

Answer
Answer: c

39. A higher financial leverage ratio indicates that

(a) The dependency of the firm on the debt is more.
(b) The dependency of the firm on the debt is less.
(c) The proportion of equity in the total capital is high.
(d) None of the above

Answer
Answer: a

40. As the financial leverage of a company increases, it leads to

(a) A decline in the cost of funds but an increase in the financial risk
(b) An increase in the cost of funds but a decline in the financial risk
(c) Both an increase in the cost of funds and financial risk
(d) Both a decline in the cost of funds and financial risk

Answer
Answer: a

41. When does the earnings per share (EPS) rise with higher debt?
(a) When the rate of return on investment is higher than the rate of interest.
(b) When the rate of return on investment is lower than the rate of interest.
(c) When the rate of interest is more than the rate of return.
(d) None of the above.
Answer
Answer: a

42. The total capital of Uranium Private Limited is ?50 lacs. The amount of debt is ?20 lacs. The
company has earned a profit of ^10 lacs during the current financial year. Its return on investment
(ROI) for the present year is
(a) 20%
(b) 40%
(c) 10%
(d) 80%

Answer
Answer: a

43. If in a particular situation, the earnings per share (EPS) falls with the increased use of debt, it
indicates that
(a) The rate of return on investment (Rol) is less than the cost of debt.
(b) The rate of return on investment is more than the cost of debt.
(c) The cost of debt is less than the rate of return on investment.
(d) None of the above

Answer
Answer: a

44. If the rate of return on investment for a company is 16%, a situation of unfavourable financial
leverage will be said to arise when the rate of interest payable on debt capital is
(a) More than 16 %
(b) Less than 16 %
(c) Equal to 16%
(d) None of the above

Answer
Answer: a
45. Under which of the following situations a company should not issue debt capital?
(a) When the cash flow condition of the company is strong.
(b) When the rate of tax is low.
(c) When the return on investment is high.
(d) When the interest coverage ratio is high.

Answer
Answer: b

46. Under which of the following situations a company is not likely to issue equity capital?
(a) When the debt service coverage ratio is high.
(b) When the interest coverage ratio is high.
(c) When the cost of debt capital is low.
(d) All of the above

Answer
Answer: d

47. If a company is borrowing funds @ 10% and the tax rate is 30%, the after-tax cost of debt is
only
(a) 10%
(b) 3%
(c) 20%
(d) 7%

Answer
Answer: d

48. Which of the following statements is not true with regard to use of fixed capital?
(a) It affects the long term growth of the business.
(b) Large amount of funds are involved.
(c) The business risk involved is low.
(d) The investment decisions are irreversible.

Answer
Answer: c
49. Under which of the following conditions the fixed capital requirements of a business is not
likely to below?
(a) When the raw material is easily available
(b) When the labour intensive production technique is used
(c) When the level of collaboration is low
(d) When the growth prospects of the firm are low

Answer
Answer: c

50. Under which of the following circumstances the fixed capital requirement of a business is not
likely to be high?
(a) When the raw material is not easily available
(b) Capital intensive techniques of production are used
(c) The growth prospects of a company a high
(d) When the financial alternatives are easily available

Answer
Answer: d

51. The working capital requirement of a business is not likely to be low when
(a) The scale of the business operation is small
(b) When the growth prospects of the business are high
(c) When the raw material is easily available
(d) When the rate of inflation is low

Answer
Answer: b

52. The working capital requirement of a business is not likely to be high when?
(a) The nature of business is trading
(b) Scale of operation of business is small
(c) It is difficult to procure raw material
(d) The rate of inflation is low

Answer
Answer: c

Chapter 10 Financial Market

1. Which of the following statements is not true with regard to money market?
(a) It involves low market risk.
(b) It is situated at specific locations.
(c) Deals in unsecured and short-term debt instruments.
(d) The instruments traded are highly liquid.

Answer/Explanation
Answer: b
Explanation:
(b) it has no physical locations

2. Which of the following statements is not true with regard to Treasury bills?
(a) Are issued in the form of a promissory note.
(b) They are highly liquid and have assured yield
(c) They carry high risk of default.
(d) They are available for a minimum amount of ₹25,000 and in multiples thereof.

Answer/Explanation
Answer: c
Explanation:
(c) they carry no risk of default

3. Which of the following statements is not true with regard to Commercial paper?
(a) Is a long-term unsecured promissory note with a fixed maturity period.

(b) It usually has a maturity period of 15 days to one year.

(c) It is sold at a discount and redeemed at par.
(d) Companies use this instrument for bridge financing.
Answer/Explanation
Answer: a
Explanation:
(a) it is a short-term instrument

4. Which of the following statements is not true with regard to Call money?
(a) It is short-term finance repayable on demand.
(b) Its maturity period ranges from one day to fifteen days.
(c) There is a direct relationship between call rates and other short-term money market instruments.
(d) It is used for inter-bank transactions.

Answer/Explanation
Answer: c
Explanation:
(c) There is an inverse relationship between call rates and other short-term money market
instruments

5. Which of the following statements is not true with regard to primary market?
(a) Is also known as the old issues market.
(b) It facilitates the transfer of investible funds from savers to entrepreneurs.
(c) It deals with new securities being issued for the first time.

(d) It facilitates the transfer of investible funds from savers to entrepreneurs.

Answer/Explanation
Answer: a
Explanation:
(a) it is a new issue market

6. Which of the following statements is not true with regard to capital market?
(a) The funds are raised for a short period of time.
(b) Both debt and equity funds can be raised.
(c) It is classified into two types.
(d) All of the above.
Answer/Explanation
Answer: a
Explanation:
(a) it deals in long term funds

7. Which of the following statements is not true with regard to stock exchange?
(a) It provides a platform for buying and selling of new securities.
(b) It curbs the marketability of the securities.
(c) By providing a ready market, it extends liquidity to the securities.
(d) It provides a platform for buying and selling of old securities.

Answer/Explanation
Answer: b
Explanation:
(b) it promotes marketability of shares

8. Which of the following is not a protective function of stock exchange?

(a) Prohibition of fraudulent and unfair trade practices.
(b) Controlling insider trading.
(c) Regulation of takeover bids by companies.
(d) Promotion of fair practices and code of conduct in securities market.

Answer/Explanation
Answer: c
Explanation:
(c) it is regulatory function

9. Raj Enterprises wishes to invest ₹1,10,000 in treasury bills. What is the maximum number of
treasury bills it can buy with this fund?
(a) 6
(b) 7
(c) 4
(d) 2

Answer/Explanation
Answer: c
Explanation:
(c) because it is issued for ₹25,000 and in multiples there off

10. Which of the following statements is true with regard to financial markets?
(a) They link the households which save funds and business firms which invest these funds.

(b) They work as an intermediary between the savers and the investors by mobilising funds between
them.
(c) They allocate funds available for investment into their most productive investment opportunity.
(d) All of the above
Answer
Answer: d

11. The allocated function is performed by

(a) Financial market
(b) Capital market
(c) Money market
(d) All of the above

Answer
Answer: d

12. It is a market for short-term funds which deals in monetary assets whose period of maturity is up
to one year.
(a) Primary market
(b) Secondary market
(c) Capital market
(d) Money market

Answer
Answer: d
13. It is an instrument of short-term borrowing by the Government of India maturing in less than
one year.
(a) Commercial bill
(b) Treasury bill
(c) Call money
(d) None of the above

Answer
Answer: b

14. Who issues a treasury bill?

(a) Any nationalised bank
(b) Any private sector bank
(c) Reserve Bank of India
(d) All of the above

Answer
Answer: c

15. Suppose an investor purchases a 91 days Treasury bill with a face value of ₹2,00,000 for
₹1,92,000. By holding the bill until the maturity date, the investor receives ₹2,00,000. What is the
amount of interest received by him?
(a) ₹8,000
(b) ₹80,000
(c) ₹3,92,000
(d) ₹2,00,000

Answer
Answer: a

16. It is used as an alternative to bank borrowing for large and creditworthy companies,
(a) Commercial bill
(b) Commercial papers
(c) Call money
(d) None of the above
Answer
Answer: b

17. It is a method by which banks borrow from each other to be able to maintain the cash reserve
ratio.
(a) Commercial bill
(b) Commercial papers
(c) Call money
(d) None of the above

Answer
Answer: c

18. A rise in call money rates makes other sources of finance such as commercial paper and
certificates of deposit
(a) Expensive in comparison with banks who raise funds from these sources.
(b) Cheaper in comparison with banks who raise funds from these sources.
(c) Creates no effect on other sources.
(d) None of the above

Answer
Answer: b

19. It is a short-term, negotiable, self-liquidating instrument which is used to finance the credit sales
of firms.
(a) Commercial bill
(b) Commercial papers
(c) Call money
(d) None of the above

Answer
Answer: a
20. The capital market consists of
(a) Development banks
(b) Commercial banks
(c) Stock exchanges
(d) All of the above

Answer
Answer: d

21. A company can raise capital through the primary market in the form of
(a) Equity shares
(b) Preference shares
(c) Debentures
(d) All of the above

Answer
Answer: d

22. They can be issued to individuals, corporations and companies during periods of tight liquidity
when the deposit growth of banks is slow but the demand for credit is high.
(a) Commercial papers
(b) Call money
(c) Commercial bill
(d) Certificate of deposit

Answer
Answer: d

23. Which of the following participants represent capital market?

(a) Development banks
(b) Commercial banks
(c) Stock exchanges
(d) All of the above

Answer
Answer: d
24. Under this method of floatation in primary market, a subscription is invited from general public
to invest in the securities of a company through the issue of advertisement.
(a) Private placement
(b) Offer through prospectus
(c) Offer for sale
(d) All of the above

Answer
Answer: b

25. PK Enterprises Limited has sold an entire lot of 5,00,000 equity shares @ ₹9 each to Prosperous
Bank Private Limited. The bank intum will offer the shares to general public for subscription @
₹11 per share. Identify the method of floatation being described in the given lines.
(a) Private placement
(b) Offer through prospectus
(c) Offer for sale
(d) Rights issue

Answer
Answer: c

26. Jaykant is holding hundred shares of a company. He has been given a privilege offer to
subscribe to a new issue of shares of the same company in proportion of 2:1 to the number of shares
already possessed by him. Identify the method of floatation being described in the above case.
(a) Offer through prospectus
(b) Offer for sale
(c) Rights issue
(d) Private placement

Answer
Answer: c
27. Stock Exchange works as a mechanism for valuation of securities through the forces of demand
and supply. Identify the related function of performed by the stock exchanges.
(a) Providing liquidity and marketability to existing securities.
(b) Safety of transaction.
(c) Pricing of security.
(d) Spreading of equity cult.

Answer
Answer: c

28. Stock exchanges provide an opportunity to the investors to disinvest and invest. Identify the
related function of the stock exchange.
(a) Providing scope for speculation.
(b) Providing liquidity and marketability to existing securities.
(c) Pricing of security.
(d) Spreading of equity cult.

Answer
Answer: b

29. The process of holding shares in electronic form is known as

(a) Demutualisation
(b) Dematerialisation
(c) Speculation
(d) None of the above

Answer
Answer: b

30. One of the common irregularities noted by the Securities and Exchange Board of India during
the inspection of a stock exchange was that it was dealing with unregistered sub-brokers. Identify
the related function of Securities and Exchange Board of India
(a) Regulatory function
(b) Protective function
(c) Developmental function
(d) None of the above
Answer
Answer: a

31. It acts like a bank and keeps securities in electronic form on behalf of the investor,
(a) Depository Participant
(b) Depository
(c) Stock exchange
(d) None of the above

Answer
Answer: b

32. It serves as an intermediary between the investor and the depository who is authorised to
maintain the accounts of dematerialised shares.
(a) Depository Participant
(b) Depository
(c) Stock exchange
(d) None of the above

Answer
Answer: a

33. It is a number assigned to each transaction by the stock exchange and is printed on the contract
note.
(a) PAN number
(b) Unique Order Code
(c) Contract Note
(d) None of the above

Answer
Answer: b
34. Identify the correct sequence of steps to be followed in the trading procedure at Stock Exchange
(a) Opening a trading account and Demat account, Placing an order, Settlement of order, Execution
of order
(b) Settlement of order, Opening a trading account and Demat account, Placing an order, Execution
of order
(c) Opening a trading account and Demat account, Placing an order, Execution of order, Settlement
of order
(d) Placing an order, Opening a trading account and Demat account, Execution of order, Settlement
of order

Answer
Answer: c

35. The mandatory detail that an investor has to provide to the broker at the time of opening a demat
account is
(a) Date of birth and address
(b) PAN number
(c) Residential status (Indian/NRI)
(d) Bank account details.

Answer
Answer: b

36. It is a legally enforceable document which is issued by a stock broker within 24 hours of the
execution of a trade order.
(a) PAN number
(b) Unique Order Code
(c) Contract Note
(d) None of the above

Answer
Answer: c

37. On this day, the exchange will deliver the share or make payment to the other broker,
(a) Pay-in day
(b) Pay-out day
(c) Transaction day
(d) None of the above

Answer
Answer: b

38. When is a trade confirmation slip issued to the investor?

(a) On placing an order
(b) On execution of the order
(c) On settlement of the order
(d) None of the above

Answer
Answer: b

39. After the trade has been executed, the broker issues a Contract Note to the investor within
(a) 52 hours
(b) 24 hours
(c) 48 hours
(d) 12 hours

Answer
Answer: b

Chapter 11 Marketing
1. Which of the following statements is not true with regard to the concept of product?
(a) It is a bundle of utility.
(b) It is a source of satisfaction.
(c) It is confined to physical product.
(d) All of the above.

Answer/Explanation
Answer: c
Explanation:
(c) It includes both tangible and intangible attributes

2. In order to promote the sales of the company, Mukund Limited has decided to offer consumer
durable products at 0% finance. Identify the type of marketing factor being described in the above
line.
(a) Controllable factor
(b) Non-controllable factor
(c) Environmental factor
(d) None of the above

Answer/Explanation
Answer: a
Explanation:
(a) It is promotion

3. Harshit is planning a start up a venture for offering mobile pet care services at door step. He has
decided to charge ?1000 for heated hydrobath& blow dry of a pet and ?500 for shampoo and
conditioning. Identify the element of marketing mix which is not being described in the above case.
(a) Product
(b) Place
(c) Price
(d) None of the above

Answer/Explanation
Answer: d
Explanation:
(d) It is promotion

4. Guneet went to a shop and expressed her desire to buy a copper water bottle only of Prestige
company. Identify the component related to branding being described in the above case.
(a) Trademark
(b) Generic name
(c) Brand name
(d) Brand mark
Answer/Explanation
Answer: c
Explanation:
(c) Prestige is a brand name

5. The term ‗market‘ may be understood in which of the following contexts?

(a) Geographical area covered
(b) Type of buyers
(c) Quantity of goods transacted
(d) All of the above

Answer
Answer: d

6. According to the modem marketing concept, which of the following statements is true?
(a) It refers to the group of people who do not have the ability but willingness to buy a particular
product.
(b) It refers to only the set of people who have the purchasing power to buy a particular product.
(c) It refers to the set of actual and potential buyers for a product.
(d) It refers only to the people who show interest in a particular product.

Answer
Answer: c

7. Which of the following is a feature of marketing process?

(a) Satisfying needs and wants of the consumers
(b) Creating a market offering
(c) Developing an exchange mechanism
(d) All of the above

Answer
Answer: d
8. Which of the following statements does not reflect a condition to be satisfied for an exchange to
take place?
(a) Involvement of at least two parties- the buyer and the seller- is mandatory.

(b) Each party should be capable of offering something of value to the other.

(c) Exchange can take place if the buyers and sellers are not able to communicate with each other.
(d) Each party should have freedom to accept or reject other party‘s offer.
Answer
Answer: c

9. Which of the following can be marketed?

(a) Red Cross society persuading to donate blood.
(b) Kerala Tourism persuading people to visit Kerala for health tourism.
(c) Political parties persuading to vote for a particular candidate.
(d) All of the above

Answer
Answer: d

10. Karam Limited is offering a travel package for 15 destinations worldwide with a free insurance
on the bookings for the month of December, 2019. Identify the feature of marketing being described
in the above lines.
(a) Needs and wants
(b) Creating a market offering
(c) Customer value
(d) Exchange mechanism

Answer
Answer: c

11. Agile Limited has launched a new range of air conditioners in order to add value to the usability
of the product. The new range of air conditioners have an inbuilt air purifier and are available in
attractive colours. Identify the type of marketing philosophy being described in the above lines.
(a) Product concept
(b) Production concept
(c) Marketing concept
(d) Societal marketing concept

Answer
Answer: a

12. In order to promote the habit of health and hygiene among weaker sections of the society,
Abhyas Limited has launched low cost packs of hand wash. Identify the type of marketing
philosophy being adopted by the company.
(a) Product concept
(b) Production concept
(c) Marketing concept
(d) Societal marketing concept

Answer
Answer: b

13. Sujhav Limited is a company dealing in various types of fire extinguishers. Considering the fact
that people generally don‘t buy fire extinguishers, the company undertakes aggressive sales
promotion efforts in order to create and maintain demand for the product. Identify the type of
marketing philosophy being described in the given case,
(a) Product concept
(b) Selling concept
(c) Marketing concept
(d) Societal marketing concept

Answer
Answer: b

14. Madhubala is planning to launch an online education portal. In order to understand the varied
needs of the students, she conducted an online survey. Based on the feedback of the survey, she has
decided to offer educational packages to the prospective buyers. Identify the type of marketing
concept being described in the given lines.
(a) Product concept
(b) Production concept
(c) Marketing concept
(d) Societal marketing concept

Answer
Answer: c

15. Pragati Limited has chalked out an action plan in order to increase its market share in the
international market by 20% in the next one year. The action plan contains the details about how the
production levels will be increased, promotional activities will be carried out and so on. Identify the
type of marketing function being described in the given lines.
(a) Gathering and analysing market information
(b) Marketing planning
(c) Product designing and development
(d) Packaging and labelling

Answer
Answer: b

16. In order to improve upon its competitive edge, Khushboo Limited has change the packaging of
its hair care products. They are now available in a consumer friendly design, which has a nozzle
attached to the lid so that at the time of usage, the consumer doesn‘t need to open the cap of the
bottle. Name the marketing function being explained in the given lines.
(a) Product designing and development
(b) Customer support services
(c) Promotion
(d) Physical distribution

Answer
Answer: a

17. In order to get feedback about its new product launch, Taggi Limited conducted an online
survey through a short questionnaire. Identify the marketing function being mentioned in the given
line.
(a) Gathering and analysing market information
(b) Marketing planning
(c) Product designing and development
(d) Packaging and labelling

Answer
Answer: a

18. Gabbar is a wholesaler of food grains. He categorises his stock into different groups on the basis
of their quality and also fixes up the prices accordingly. Identify the type of marketing function
being mentioned in the given line.
(a) Physical distribution
(b) Transportation
(c) Warehousing
(d) Standardisation and grading

Answer
Answer: d

19. In order to enhance the easy marketability of the products, Dev, a producer gets the home
furnishing products manufactured in confirmation to the predetermined specifications. Identify the
type of marketing function being described in the given case.
(a) Physical distribution
(b) Standardisation and grading
(c) Transportation
(d) Warehousing

Answer
Answer: b

20. Good Health Limited has decided to launch a new range of water bottles with in-built water
purifier. Instead of marketing the product by is generic name, the company has decided to call it
Turifiere‘. Identify the type of marketing function being described in the given lines.
(a) Packaging and labelling
(b) Branding
(c) Pricing
(d) Promotion
Answer
Answer: b

21. Drishti Limited is a chain of trusted optical centers for prescription & fashion eyewear. It caters
to affluent people with a range of premium sunglasses for men, women and kids. In order to raise
the level of buyers‘ satisfaction, the company has decided to create a special section in each of its
outlets for handling customer complaints and adjustment requirements. Identify the type of
marketing function described in the given lines.
(a) Product designing and development
(b) Customer support services
(c) Promotion
(d) Physical distribution

Answer
Answer: b

22. Ecofriend Limited has decided to launch solar jackets, which will have an inbuilt solar charger
as well. In order to make its product competitive, the company has decided to offer it for sale within
the range of ^1500 to ^4000. Identify the related function of marketing being mentioned in the given
case.
(a) Packaging and labelling
(b) Branding
(c) Pricing
(d) Promotion

Answer
Answer: c

23. Keeping in view the recent trends of sales regression, Sona Limited has decided to offer a flat
15% discount on all its products. Identify the related function of marketing being described in the
given lines.
(a) Packaging and labelling
(b) Branding
(c) Pricing
(d) Promotion
Answer
Answer: d

24. BeCool Limited has decided to market its products through the conventional network of
manufacturer-wholesaler-retailer-consumer. Identify the function of marketing being described in
the above line.
(a) Physical distribution
(b) Transportation
(c) Warehousing
(d) Standardisation and grading

Answer
Answer: a

25. While reading the label of a pack of aluminium foil, Reshma discovered that the product was
manufactured at Hyderabad but was available for sale in many states across the country. Identify the
function of marketing which has made this possible.
(a) Physical distribution
(b) Standardisation and grading
(c) Transportation
(d) Warehousing

Answer
Answer: c

26. Ranjan‘s business is being adversely affected due to the delay in delivery on account of poor
weather conditions. Identify the marketing function which will be helpful to him in this regard.
(a) Physical distribution
(b) Standardisation and grading
(c) Transportation
(d) Warehousing

Answer
Answer: d
27. Champ Limited is a company providing online education to school children of all the classes.
Over the years, it has established a good reputation and a market share of 75%. However, in past 2
months, due to the entry of a new competitor in the same segment, the market share of the company
has reduced by 20%. Identify the type of marketing factor which has adversely affected the sales of
the company.
(a) Controllable factors
(b) Environmental factors
(c) Marketing mix
(d) None of the above

Answer
Answer: b

28. Identify the component of branding being depicted below.

(a) Brand name

(b) Brand mark
(c) Trademark
(d) Generic name

Answer
Answer: b

29. What does the symbol given below denote?

(a) Brand name

(b) Brand mark
(c) Trademark
(d) Generic name

Answer
Answer: c
30. Pranav has decided to start a business of manufacturing crockery and cutlery items. In order to
give a unique identification to his products, he has decided to assign the brand name ‗Elegan‘ as it
will enable the firm to secure and control the market for its products. Identify the relative advantage
of branding to the marketers being described in the above case.
(a) Facilitates differential pricing
(b) Ease in the launching of new products
(c) Facilitates product differentiation
(d) Assists in advertising and display programmes

Answer
Answer: c

31. Srijan is fond of a particular brand of stationery. Every time he buys his favourite brand
stationery products, he does not need make a close inspection of that product. Identify the relative
advantage of branding to the customers being described in the given case.
(a) Supports in product identification
(b) Certifies quality
(c) Considered to be a status symbol
(d) None of the above

Answer
Answer: a

32. Karan had started the business of producing exclusive home decor items under the brand name
‗Eleganza‘ 15 years back. Over the years, he has diversified into new segments like home
furnishing, furniture and kitchenware. However, all the products are being sold under the same
brand name ‗Eleganza‘, as it appears to be apt for all of them. Identify the relative feature of a good
brand name being described in the given case.
(a) Short and easy to pronounce, spell and remember
(b) Reflects the functions of the product
(c) Distinctive/easily identifiable
(d) Versatile, can be used for brand extension

Answer
Answer: d
33. Sugandha purchased a pack of crayons for her daughter from a nearby stationery shop. She
noticed that the crayons were packed in a portable transparent plastic bag. Identify the level of
packaging being described in the above lines.
(a) Primary package
(b) Secondary packaging
(c) Transportation packaging
(d) None of the above

Answer
Answer: a

34. Lavanya runs a Play School from her residence. Recently, she placed an order online for 200
chalk boxes. The boxes were delivered to her in a corrugated box. Identify this level of packaging
which facilitated movement of the product.
(a) Primary package
(b) Secondary packaging
(c) Transportation packaging
(d) None of the above

Answer
Answer: c

35. In an inter school quiz competition, the participants were shown empty bottles of soft drinks and
were asked to identify the brands. All the participants were able to do so. Identify the related point
highlighting the importance of packaging which is being described in the given case.
(a) Rising standards of health and sanitation
(b) Facilitates product differentiation
(c) Innovative packaging adds value to a product.
(d) Useful in self service outlets

Answer
Answer: b
36. When Reema had sent her servant to the market to buy a pack of chips, she asked him
specifically to bring the yellow coloured packet of chips of a particular brand. Identify the function
of packaging being described in the above line.
(a) Helps in product identification
(b) Provides protection to the product
(c) Facilitates the use of product
(d) Assists in promotion of the product

Answer
Answer: a

37. On visiting a supermarket to buy a pack of moisturizer, Harsha noticed that the packaging of
most of the beauty products exhibited a photograph of a celebrity. Identify the related function of
packaging being described in the given case.
(a) Facilitates the use of product
(b) Assists in promotion of the product
(c) Helps in product identification
(d) Provides protection to the product

Answer
Answer: b

38. The labelling of a pack of oats cookies explains how the product is beneficial in adding fibre to
the diet and the other related health benefits. Identify the related function of labelling being
described in the given case.
(a) Describes the product and specifies its content
(b) Identification of the product or brand
(c) Grading of products
(d) Helps in promotion of the products

Answer
Answer: d
39. Identify the component of promotion mix being described in the given exhibit?

(a) Advertising
(b) Sales Promotion
(c) Public relation
(d) Personal selling

Answer
Answer: b

40. Identify the related function of labelling being depicted below as given on the pack of the chips.

(a) Describes the product and specifies its content

(b) Grading of products
(c) Helps in promotion of the products
(d) Identification of the product or brand

Answer
Answer: c

41. Ria refused to buy an insulated lunch box for ?1200 as she felt that the real worth of the product
was much less than its monetary value. Identify the factor related to pricing decision being
described in the given case.
(a) Cost of the product
(b) The utility and demand
(c) Government and legal regulations
(d) Pricing objectives

Answer
Answer: b
42. A salesman of a company dealing in pet foods is paid a fixed salary of ?20000 per month and
furthermore, ?20 extra per unit of the product sold beyond the target sales. Identify the type of cost
being described in the given example.
(a) Fixed cost
(b) Variable cost
(c) Semi-variable cost
(d) None of the above

Answer
Answer: c

43. Under which of the following conditions is a marketer not likely to fix the price of his products
at higher end?
(a) When he faces high degree of competition
(b) When he wants to attain market share leadership
(c) When the product is unique in terms of packaging, product difference and product differentiation
(d) When the demand for the product is low

Answer
Answer: c

44. Under which of the following situations is a company not likely to fix a lower price for its
product?
(a) When the competition has introduced a substitute product
(b) If the demand for a product is inelastic
(c) When the company wants to attain market share leadership
(d) When the demand for the product is low

Answer
Answer: b

45. Nooper Limited is marketing its products online. Identify the channel of distribution being
adopted by the company.
(a) Zero level channel
(b) One level channel
(c) Two level channel
(d) Three level channel

Answer
Answer: a

46. Kannu has decided to sell her range of organic food products through her own retail outlets.
Identify the channel of distribution being adopted by the company.
(a) Zero level channel
(b) One level channel
(c) Two level channel
(d) Three level channel

Answer
Answer: a

47. Srijan Limited sells its products through the company approved retailers. Identify the channel of
distribution being adopted by the company.
(a) Zero level channel
(b) One level channel
(c) Two level channel
(d) Three level channel

Answer
Answer: b

48. Hena is planning to set up a small manufacturing unit for manufacturing eco-friendly packaging
material. She has decided to market her products through the conventional channel of distribution,
which involves wholesalers and retailers. Identify the channel of distribution being adopted by the
company.
(a) Zero level channel
(b) One level channel
(c) Two level channel
(d) Three level channel
Answer
Answer: c

49. Under which of the following conditions will the company not be able to provide high level of
customer services?
(a) When it maintains high level of inventory
(b) When it maintains low level of inventory
(c) When it owns large number of warehouses
(d) None of the above

Answer
Answer: b

50. Under which of the following conditions does a business need not maintain high level of
inventory?
(a) When higher level of customer services need to be provided
(b) When high degree of accurate sales forecast can be made
(c) When the responsiveness of the distribution system is low
(d) All of the above

Answer
Answer: b

51. Mehak Limited has hired 300 salesmen who will be assigned the task of contacting prospective
buyers and creating awareness about the new range of organic incenses introduced by the company.
Identify the element of promotion been described in the given lines.
(a) Advertising
(b) Sales promotion
(c) Personal selling
(d) Public relation

Answer
Answer: c
52. Within 2 years of it‘s inception, Bhavishya Limited has created a very positive reputation about
itself and its products in the eyes of general public by participating extensively in various social
welfare programs. Identify the component of promotion mixing described in the given lines.
(a) Advertising
(b) Personal selling
(c) Public relation
(d) Sales promotion

Answer
Answer: c

Chapter 12 Consumer Protection

1. Yash had severe pain in his throat, so he called up the doctor and asked for a telephonic advice.
The doctor prescribed him a sachet of Throat Reliever Hot Sip. He asked his servant to get a sachet
from a local chemist with a cash memo. After consuming the sachet, he started feeling more ill, so
he picked up the empty sachet and started reading the label. To his utter dismay, the sachet had
already expired last month. Which of the following remedies is not available to him any longer as a
consumer?
(a) To withdraw the hazardous goods from sale.
(b) To replace the defective product with a new one.
(c) To refund the price paid for the product.
(d) To pay a reasonable amount of compensation for any loss suffered by the consumer due to the
negligence of the opposite party.

Answer/Explanation
Answer: b
Explanation:
(b) Because he has already consumed the product

2. Due to the negligence of the doctors, Johar passed away within a week‘s time after his surgery of
the spine. Which of the following parties can not file a case in this regard?
(a) The consumer
(b) Any registered consumers‘ association
(c) A legal heir or representative of a deceased consumer
(d) All of the above

Answer/Explanation
Answer: a
Explanation:
(a) Because he is dead

3. Which of the following activities lie within the scope of consumer protection?
(a) Educating consumers about their rights and responsibilities

(b) Helping consumers in getting their grievances redressed

(c) Protecting the interests of consumers
(d) All of the above
Answer
Answer: d

4. Jagga started a small stationery shop in the nearby market. In pursuit of earning higher profits in a
short term, he overpriced all his products by 20%. Gradually, the consumers understood his pricing
strategy and stopped coming to his shop for making any purchase. Identify the related point
highlighting the importance of consumer protection from businessmen‘s point of view.
(a) Long-term interest of business is assured
(b) Business uses society‘s resources so they need to safeguard consumer‘s interests.
(c) Social responsibility towards consumers as an important interest group.

(d) It is the moral obligation of the businessmen to give due consideration to the consumer‘s
interests.
Answer
Answer: a

5. Dipika Pallikal, the Padma Shri recipient, in a petition filed in 2012 said that she had faced
humiliation and loss of reputation, as a transaction using a bank‘s debit card at a hotel in the
Netherlands‘ Rotterdam failed, though she had a balance of more than 10 times the billed amount in
her account. The bank claimed that the incident was a case of ―force majeure‖, which means a
natural and unavoidable catastrophe or an act of God, and was beyond is control. A consumer court
in Chennai has directed the bank to pay a compensation of lakh to Dipika Pallikal for ―deficiency in
service‖. The bank was also directed to pay her ₹5,000 as expenses. Identify the right of consumers
being exercised in the given case.
(a) Right to safety
(b) Right to be heard
(c) Right to seek redressal
(d) Right to consumer education

Answer
Answer: c

6. When Aaradhya, inspite of paying the full price of the plot as per the terms and conditions of the
allotment letter, was not given the possession of the plot by the builder, she filed a case in the State
Commission. Identify the right of consumers being exercised in the given case.
(a) Right to safety
(b) Right to be heard
(c) Right to seek redressal
(d) Right to consumer education

Answer
Answer: b

7. Ranjan bought a bottle of soft drink of a famous beverage company and found a gutka pouch
floating inside the bottle. He forwarded a legal notice to the company, accusing it of the deficiency
in service that could cause health hazard to the consumer. Identify the right of consumer being
violated in the given case.
(a) Right to safety
(b) Right to be heard
(c) Right to seek redressal
(d) Right to consumer education

Answer
Answer: a
8. Siddhartha booked several rooms in a reputed five-star hotel in Goa for his destination wedding.
On the day of his wedding, when his friend Ramandeep, after attending the lunch party, returned to
his room to take a shower, he had a fall in the bathroom. The bathroom was three stairs down to the
bathing area and there was a handle bar to the right. On the second step, Ramandeep slipped badly
and fell on his face with a great force, resulting in multiple fractures. He filled a case against the
hotel for compensation for the injuries suffered due to faulty designing of its room. Identify the right
of consumers being violated in the given case.
(a) Right to be heard
(b) Right to seek redressal
(c) Right to consumer education
(d) Right to safety

Answer
Answer: d

9. A consumer court in Pune slapped a ₹55,000 fine on a reputed online food-delivery company
along with a hotel for delivering non-vegetarian food to a lawyer who had ordered a vegetarian dish.
He had ordered paneer butter masala but was delivered butter chicken instead. When he reportedly
registered the complaint, the hotel promised to replace it and send another parcel of food with the
correct dish. However, Deshmukh allegedly received butter chicken instead of paneer butter masala
the second time as well. Deshmukh sent notices to both the restaurant and the online food-delivery
cpmpany for ‗hurting religious sentiments‘. Identify the right of consumers being violated in the
given case.
(a) Right to be heard
(b) Right to seek redressal
(c) Right to choose
(d) Right to safety

Answer
Answer: c

10. A popular nationalised bank has been fined ₹8 lakh by the country‘s highest consumer court,
National Consumer Disputes Redressal Commission (NCDRC), for not sharing complete insurance
policy details with a customer. The bank has been ordered to pay the full amount as compensation to
the customer. Identify the right of consumers being violated in the given case.
(a) Right to be heard
(b) Right to seek redressal
(c) Right to information
(d) Right to safety
Answer
Answer: c

11. Naina, her husband and her two minor daughters were travelling from Mumbai to Delhi,
availing a company‘s flight services in 2018. The airlines had issued boarding passes to all of them.
Naina claimed in her plea that the airlines left all her family at the Mumbai Airport without
informing them, despite their being in the airport premises. The family had to stay in a hotel and
purchase new tickets the next day. The State Consumer Disputes Redressal Commission (SCDRC).
on hearing the plea, asked an airline company to pay ₹50,000 to Naina and her family. Identify the
right of consumers being exercised in the given case.
(a) Right to safety
(b) Right to be heard
(c) Right to seek redressal
(d) Right to consumer education

Answer
Answer: c

12. Identify the right of consumers being promoted in the picture given on the right.

(a) Right to safety

(b) Right to be heard
(c) Right to seek redressal
(d) Right to consumer education

Answer
Answer: d

13. Identify the right of consumers being exhibited in the picture on your right.

(a) Right to choose

(b) Right to be heard
(c) Right to seek redressal
(d) Right to consumer education

Answer
Answer: a

14. Identify the right of consumers being promoted in the picture.

(a) Right to safety

(b) Right to be heard
(c) Right to seek redressal
(d) Right to consumer education

Answer
Answer: a

15. Identify the right of consumers being promoted in the given picture.

(a) Right to seek redressal

(b) Right to consumer education
(c) Right to information
(d) Right to be heard

Answer
Answer: c

16. Identify the responsibility of consumers being promoted in the picture.

(a) Buy only standardised goods

(b) Read labels carefully
(c) Assert yourself to ensure that you get a fair
(d) Be honest in your dealings
Answer: c
17. Identify the responsibility of consumers being highlighted in the picture given below.

(a) Be honest in your dealings

(b) Learn about the risks associated with products and services
(c) Assert yourself to ensure that you get a fair deal
(d) Respect the environment.
Answer
Answer: b

18. Recently, Yamini purchased a pack of dog food for her pet. It was nowhere mentioned on the
pack that it had to be mixed in lukewarm water in order to ensure easy digestion. Therefore, Yamini
kept serving the food to her pet by mixing it in cold water. As a result, her pet fell ill and had to be
hospitalised. Identify the right of consumers being ignored by the company marketing the pet food.
(a) Right to consumer education
(b) Right to information
(c) Right to choose
(d) Right to be heard

Answer: b

19. Which of the following types of cases are filed in the State Commission?
(a) When the value of the goods or services in question, along with the compensation claimed,
exceeds ₹20 lakhs but does not exceed ₹1 crore.
(b) When the value of the goods or services in question, along with the compensation claimed,
exceeds ₹20 lakhs but does not exceed ₹2 crore.
(c) When the value of the goods or services in question, along with the compensation claimed,
exceeds ₹40 lakhs but does not exceed ₹1 crore.
(d) None of the above

Answer
Answer: a
20. Where can the aggrieved party appeal further in case he is not satisfied with the order of the
District Forum?
(a) National Commission
(b) State Commission
(c) Supreme Court of India
(d) All of the above

Answer
Answer: b

21. In case an aggrieved consumer is not satisfied with the decision of the State Commission, he can
make a further appeal in
(a) National Commission
(b) District Forum
(c) Supreme Court of India
(d) All of the above

Answer
Answer: a

22. In case an aggrieved consumer is not satisfied with the decision of the National Commission, he
can make a further appeal in
(a) State Commission
(b) District Forum
(c) Supreme Court of India
(d) All of the above

Answer
Answer: c

23. Which of the following statements is not true with regard to the District Forum?
(a) It consists of a President and three other members, one of whom should be a woman.
(b) The members are appointed by the District Government.
(c) A complaint can be made to the appropriate District Forum when the value of the goods or
services in question, along with the compensation claimed, does not exceed ?10 lakhs.
(d) All of the above

Answer
Answer: d
24. Which of the following statements is true with regard to the State Commission?
(a) It consists of a President and not less than two other members, one of whom should be a woman.
(b) The members are appointed by the State Government concerned.
(c) A complaint can be made to the appropriate State Commission when the value of the goods or
services in question, along with the compensation claimed, exceeds ₹20 lakhs but does not exceed
₹1 crore.
(d) All of the above

Answer
Answer: d

25. Which of the following statements is not true with regard to the National Commission?
(a) It consists of a President and at least five other members, one of whom should be a woman.
(b) The members are appointed by the Central Government.
(c) A complaint can be made to the National Commission when the value of the goods or services in
question, along with the compensation claimed, exceeds ₹1 crore.
(d) Where the aggrieved party was not satisfied with the order of the National Commission, the case
can be taken to the Supreme Court of India.

Answer
Answer: a

26. Which of the following functions are carried out by the consumer organisations?
(a) Publishing periodicals to impart knowledge about consumer issues.
(b) Providing legal assistance to consumers.
(c) Filing complaints in appropriate consumer courts on behalf of the consumers,
(d) All of the above

Answer
Answer: d

27. In case a consumer is not satisfied with the order passed in the State Commission, he can further
make an appeal in the National Commission within a time period of
(a) 10 days
(b) 20 days
(c) 30 days
(d) 45 days

Answer
Answer: c
 Class 12 Shiv Das

2021-22
CBSE
Term 1
(Nov-Dec)
Chapterwise
QUESTION BANK
C Q s
M BUSINESS
STUDIES
Competency Based Questions
• Case Studies with MCQs
• Objective Type MCQs

Chapterwise
• Keynotes
• Questions & Answers

OMR Based
Sample Question Paper

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C ontents
Term–1

Latest Syllabus (Issued by CBSE) ...(vi)

Competency Based Questions (CBQs)
Unit 1 Nature & Significance of Management ... C-1
Unit 2 Principles of Management ... C-8
Unit 3 Business Environment ... C-18
Unit 4 Planning ... C-25
Unit 5 Organising ... C-31
Unit 11 Marketing Management ... C-36

Chapterwise CBSE Examination Questions

Unit 1 Nature & Significance of Management ... 1
Unit 2 Principles of Management ... 19
Unit 3 Business Environment ... 40
Unit 4 Planning ... 50
Unit 5 Organising ... 69
Unit 11 Marketing Management ... 92

OMR Based Sample Question Paper ... OMR-1

✽ • •• • ✽

(iv)
 CBSE BOARD EXAM 2021-22

NEW PATTERN
(CBSE Circular no. Acad-51/2021) dated 5th July, 2021

TERM-1
50% Syllabus for Nov-Dec. 2021
Questions Types (90 Minutes)

CASE BASED MULTIPLE CHOICE ASSERTION-REASON

MCQs QUESTIONS TYPE MCQs

✰ CBSE to send Question Papers with marking scheme.

✰ Exams will be conducted in the school.
✰ OMR sheet to be used for Evaluation.
✰ Term-1 marks will add to the final result.

Internal Assessment
✰ 3 Periodic Tests
✰ Student Enrichment
✰ Portfolio
✰ Practical
✰ Speaking listening activities
✰ Projects
(v)
 Latest Syllabus (Issued by CBSE) (24 TH
July 2021)

BUSINESS STUDIES (Code-054)

COURSE STRUCTURE—CLASS XII (SESSION 2021-2022)
Theory
Time: 90 Minutes Maximum Marks: 40

S.No. Units No. of Periods Marks

Part A Principles and Functions of Management
1. Nature and Significance of Management 12
2. Principles of Management 11 16
3. Business Environment 08
4. Planning 08
14
5. Organising 10
Total 49 30
Part B Business Finance and Marketing
11. Marketing Management 24 10
Total 24 10
TOTAL (Part A + Part B) 73 40
Project Work (Part 1) 10
Students would prepare only ONE project in the entire academic session, which is divided into 2 terms,
i.e., Term I and Term II.

TERM-1
PART A : PRINCIPLES AND FUNCTIONS OF MANAGEMENT
Unit 1 : Nature and Significance of Management
Concept After going through this unit, the student/ learner
would be able to:
Management—concept, objectives, and • Understand the concept of management.
importance • Explain the meaning of ‘Effectiveness and Efficiency’.
• Discuss the objectives of management.
• Describe the importance of management.
Management as Science, Art and Profession • Examine the nature of management as a science, art and profession.
Levels of Management • Understand the role of top, middle and lower levels of management
Management functions—planning, • Explain the functions of management
organizing, staffing, directing and controlling
Coordination—concept and importance • Discuss the concept and characteristics of coordination.
• Explain the importance of coordination.

(vi)
Unit 2 : Principles of Management
Principles of Management—concept and • Understand the concept of principles of management.
significance • Explain the significance of management principles.

Fayol’s principles of management • Discuss the principles of management developed by Fayol.

Unit 3 : Business Environment
Business Environment—concept and • Understand the concept of ‘Business Environment’.
importance • Describe the importance of business environment.
Dimensions of Business Environment— • Describe the various dimensions of ‘Business Environment’.
Economic, Social, Technological, Political and
Legal
Unit 4 : Planning
Planning: Concept, importance and limitation • Understand the concept of planning.
• Describe the importance of planning.
• Understand the limitations of planning.
Planning process • Describe the steps in the process of planning.
Unit 5 : Organising
Organising: Concept and importance • Understand the concept of organizing as a structure and as a process.
• Explain the importance of organising.
Organising Process • Describe the steps in the process of organizing
Structure of organisation—functional and • Describe functional and divisional structures of organisation.
divisional concept
Delegation: concept, elements and • Understand the concept of decentralisation.
importance • Describe the elements of delegatgion.
• Appreciate the importance of Delegation.
Decentralization: concept and importance • Understand the concept of decentralisation.
• Explain the importance of decentralisation.
• Differentiate between delegation and decentralisation.

PART B : BUSINESS FINANCE AND MARKETING

Unit 11 : Marketing
Themes Learning Objectives
Marketing – Concept, functions and • Understand the concept of marketing.
philosophies • Discuss the functions of marketing.
• Explain the marketing philosophies.
Marketing Mix – Concept and elements • Understand the concept of marketing mix.
• Describe the elements of the marketing mix.
Product—branding, labelling and packaging – • Understand the concept of product as an element of marketing mix.
Concept • Understand the concepts of branding, labelling and packaging.
Price—Concept, Factors determining price • Understand the concept of price as an element of marketing mix.
• Describe the factors determining price of a product.
Physical Distribution — concept • Understand the concept of physical distribution.
Promotion – Concept and elements; • Understand the concept of promotion as an element of marketing mix.
Advertising, Personal Selling, Sales • Describe the elements of the promotion mix.
Promotion and Public Relations • Understand the concept of advertising and personal selling.
• Understand the concept of sales promotion.
• Discuss the concept of public relations.
Project Work in Business Studies (only one project): Please refer to guidelines as Given in Class XII
Curriculum.
(vii)
(viii)
 N D
A F
L
S
E SO T
IP ION EN
Unit : One
C Nature and Significance of
R IN CT EM
P UN AG
F N Management
MA

COMPETENCY BASED
1
Competency Based Questions
 Multiple Choice Questions 7. ‘The activities involved in managing an
enterprise are common to all organisations
1. Which is not a function of management of the whether economic, social or political’.
following: Which characteristic of management is

s
(a) Planning

a
highlighted in the given statement.

iv D
(b) Staffing (a) Management is a goal-oriented process
(c) Cooperating (b) Management is all pervasive

Sh
(d) Controlling  [Ans. (c) (c) Management is multidimensional
2. Policy formulation is the function of (d) Management is a group activity.  [Ans. (b)
(a) Top level Managers 8.
Which one of the following is not an
(b) Middle level Managers organisational objective of management
(c) Operational Management (a) Survival (b) Cooperation
(d) None of the above [Ans. (a) (c) Growth (d) Profit  [Ans. (b)
3. The following is not an objective of Management 9. ‘Management aims at reducing costs and
(a) Earning profits increasing productivity’.
(b) Growth of the organisation Which importance of Management is
(c) Providing Employment highlighted in the given statement.
(d) Policy Making [Ans. (c) (a) Management helps in achieving group goals
4. Which one of the following is not a characteristic (b) Management increases efficiency
of management (c) Management creates a dynamic
(a) Management is a goal-oriented process organisation
(b) Management is multidimensional (d) Management helps in achieving personal
(c) Management is profit oriented objectives [Ans. (b)
(d) Management is intangible  [Ans. (c) 10. Deeksha is working in ‘Telco Ltd.’ A company
5. Foremen and supervisors fall in the category of manufacturing toys. She found that the profits
(a) Top level management had started declining for the last six months.
(b) Operational Management Profit has an implication for the survival of the
(c) Middle Level Management firm. So She analysed the business environment
(d) None of the above  [Ans. (b) to find out the reasons for this decline.
6.
Which of the following functions of From the following alternatives, identify the
Management is concerned with finding the level of management at which Deeksha is
right people for the right Job. working.
(a) Planning (b) Organising (a) Lower level Management
(c) Staffing (d) Controlling [Ans. (c) (b) Middle level Management

Competency Based Questions (CBQs) C-1

 C-2 Shiv Das Chapterwise Question Bank (Business Studies XII)

(c) Top Level Management (c) Effectiveness

(d) None of the above [Ans. (c) (d) Efficiency [Ans. (b)
11. One of the organisational objectives of 17. Saurabh is managing director in a shoe
management is ‘Growth of a business’. manufacturing company. He has been doing well
Which one of the following is not associated at this post. Under his guidance and leadership,
with measurement of business growth. the company has been actively achieving all
Nature and Significance of Management

(a) Sales volume the set targets as all the unrelated and diverse
(b) Number of Employees actions taken by different departments are given
(c) Number of creditors a common direction.
(d) Number of Products offered  [Ans. (c) Identify the characteristic of management
12. ‘Management has to adapt itself to the changing discussed in the given case.
environment’. Identify from the following (a) Management is a goal oriented process
alternatives, the characteristic of management (b) Management is a continuous process
discussed in the given statement. (c) Management is a group activity
(a) Management is a group activity (d) Management is a dynamic function  [Ans. (c)
(b) Management is a dynamic function 18. Name the process of working with and through
(c) Management is goal oriented others to effectively achieve organisational
(d) Management is multidimensional [Ans. (b) objectives by efficiently using limited resources
13. _______ refers to the orderly synchronising in a changing environment.
of efforts of subordinates to provide proper (a) Management
amount, timing and quality of execution. (b) Planning
(Choose the correct alternative from the (c) Organising
following) (d) Controlling  [Ans. (a)
(a) Planning 19.
‘Even where members of a department

a s
(b) Organising willingly cooperate and work, a manager has to

iv D
(c) Coordination coordinate the efforts of different people in a
(d) Cooperation  [Ans. (c) conscious manner.’ Identify the characteristic of

Sh
14. _______ is a managerial function that is concerned coordination discussed above.
with monitoring organisational performance (a) Coordination ensures unity of action
towards the attainment of organisational goals. (b) Coordination is a deliberate function
(Identify from the following alternatives) (c) Coordination is a continuous process
(a) Planning (d) Allowances  [Ans. (b)
(b) Organising 20. ................. is the force that binds all the other
(c) Directing functions of management
(d) Controlling [Ans. (d) (a) Planning
15. ________ in Management means to complete the (b) Organising
task correctly with minimum resources. (c) Span of Management
(Choose from the following alternatives) (d) Coordination [Ans. (d)
(a) Effectiveness 21. Management is ................. .
(b) Efficiency (a) An art
(c) Coordination (b) A science
(d) None of the above [Ans. (b) (c) Both art & science
16. Vijay works in a bank. The bank is about to lose (d) Neither [Ans. (c)
its position as the leading bank in the banking 22. ‘Management cannot be seen but its presence
industry. Vijay was assigned to find out the can be felt in the way the organisation functions.’
reason behind poor performance of the bank. Which characteristic of management is
He analysed the situation and came out with the mentioned in the given statement.
conclusion that there was lack of integration of (a) Management is multidimensional
efforts made by various departments like human (b) Management is all pervasive
resource, information technology and customer (c) Management is an intangible force
relationship. (d) Management is a dynamic function [Ans. (c)
Identify the Managerial concept discussed in 23. ‘Coordination unifies unrelated or diverse
the about case. interests into purposeful work activity.’ Which
(a) Cooperation characteristic of coordination is discussed in the
(b) Coordination given statement?
 Competency Based Questions (CBQs) C-3

(a) Coordination is a continuous process. 30. _______ arises out of the complexities of modern
(b) Coordination ensures unity of action. technology and the diversity of tasks to be
(c) Coordination is an all pervasive function. performed.
(d) Coordination integrates group efforts. [Ans. (d) (a) Division of work
24.
Identify the nature of management when (b) Cooperation
a manager applies the existing theoretical (c) Specialisation
Knowledge in his own unique manner. (Choose (d) Functional Differentiation [Ans. (b)
the correct alternative) 31. Harsh is the managing director in a shoe
(a) Management as a Science manufacturing company. He has been doing well
(b) Management as an Art at this post. Under his guidance and leadership,
(c) Management as a profession the company has been actively achieving all

COMPETENCY BASED
(d) Management as a Discipline [Ans. (b) the set targets as all the unrelated and diverse
25. ‘The aim of a manager is to reduce costs and actions taken by different departments are
increase productivity’. given a common direction.
Identify the importance of management Identify the characteristic of Management
mentioned in the given Statement. discussed in the given case.
(a) Management increases efficiency. (a) Management is a goal oriented process
(b) Management creates a dynamic organisation. (b) Management is a continuous process
(c) Management helps in achieving personal (c) Management is a group activity
objectives. (d) Management is a dynamic function [Ans. (c)
(d) Management helps in achieving group goals. 32. Coordination acts as the binding force between
 [Ans. (a) departments and ensures that all action is aimed at
26. Coordination is ................. . achieving the goals of the organisation.

s
(a) a function of management Which characteristic of management is

a
(b) the essence of management mentioned in the given statement.

iv D
(c) an objective of management (a) Coordination integrates group efforts

Sh
(d) characteristic of management [Ans. (b) (b) Coordination ensures unity of action
27. ................. is the process of designing and (c) Coordination is a continuous process
maintaining an environment in which (d) Coordination is an all pervasive function
individuals, working together in groups,  [Ans. (b)
efficiently accomplish selected aims. 33. Match the features of management in Column I
(a) Planning with their respective definition in Column II.
(b) Management Column I Column II
(c) Organising
A. Continuous (i) Managerial functions are
(d) Development [Ans. (b) process performed by all managers
28. ‘An organisation has multiple objectives to all the time.
serve the purpose of the different groups that B. Pervasive (ii) Effect of management
constitute it’, which importance of management can only be felt on
is mentioned here? organisation functions.
(Choose the correct alternative) C. Intangible force (iii) Managerial activities
(a) Management helps in achieving group are common to all
goals. organisations
(b) Management helps in development of (a) A-(i), B-(iii), C-(ii)
society. (b) A-(iii), B-(ii), C-(i)
(c) Management creates a dynamic (c) A-(ii), B-(iii), C-(i)
organisation. (d) A-(ii), B-(i), C-(ii) [Ans. (a)
(d) Management helps in achieving personal 34. __________ is the process of working with
objectives. [Ans. (b) and through others to effectively achieve
29. Which of the following is a feature of art? organisational objectives by efficiently using
(a) Existence of theoretical knowledge limited resources in the changing environment.
(b) Systematised body of knowledge (a) Coordination
(c) Service motive (b) Management
(d) Ethical code of conduct [Ans. (a) (c) Organising
(d) Planning [Ans. (b)
 C-4 Shiv Das Chapterwise Question Bank (Business Studies XII)

35. ________ is not an element of delegation. Which dimension of management is reflected

(a) Authority by Anil’s view? (Choose the correct alternative)
(b) Accountability (a) Management of people
(c) Efficiency (b) Management of work
(d) Responsibility [Ans. (c) (c) Management of operations
(d) Management of resources
 Case Based Questions
Nature and Significance of Management

Ans. (a) Management of people

I. Anil is a Managing director in a toy II. XOLO Power Ltd. set up a factory for
manufacturing company. He decided to set up a manufacturing solar lanterns in a remote village
new manufacturing unit of his company in a rural as there was no reliable supply of electricity in
area of Bihar where job opportunities are very rural areas. The revenue earned by the company
less. He believes in using environmental friendly was sufficient to cover the costs and the risks. As
methods of production and aims at giving the demand of lanterns was increasing day by
employment opportunities to the disadvantaged day, the company decided to increase production
section of the community. As a manager he aims to generate higher sales. For this they decided
at reducing costs and increasing productivity to employ people from a nearby village as very
through better planning, organizing, directing few job opportunities were available in that
staffing and controlling the activities of the area. The company also decided to open schools
organization. Anil considers human resources and creches for the children of its employees.
as the greatest asset of any organization. Getting The General Manager of the company, Nishant
work done through others is a major task of a believes that an organization should provide
manager as per the views of Anil. As a manager good quality products and services, create
Anil believes that his task is to make workers employment opportunities and adapt new

s
work towards achieving the organizations’ goals. technology for the greater good of the people.

a
According to him, in order to be successful, an

iv D
On the basis of the above paragraph answer the
following questions. organization must change itself and its goals

Sh
On the basis of the above paragraph, answer the according to the needs of the environment. As per
following questions: Nishant’s viewpoint, in order to ensure success a
business needs to add to its prospects in the long
(i) Identify the level of management at which Anil
run. He firmly believes that in order to remain in
is working.
the industry, management must exploit fully the
(a) Top level management
given resources.
(b) Middle level management
On the basis of the above paragraph, answer the
(c) Lower level management
following questions:
(d) Supervisory level management
Ans. (a) Top level management (i) Which set of managerial objectives are
(ii) Identify the objective of management discussed mentioned in the given case. (Choose the correct
in the given case (Choose the correct alternative) alternative)
(a) Economic objective (a) Personal objectives and social objectives
(b) Organizational objective (b) Social objectives and group objectives
(c) Social objective (d) Personal objective (c) Organizational objectives and social
Ans. (c) Social objective objectives
(iii) “As a manager, he aims at reducing costs and (d) Organizational objectives and personal
increasing productivity”. objectives
Name the importance of management Ans. (c) Organizational objectives and social
highlighted in the given statement. (Choose the objectives
correct alternative) (ii) “Nishant believes that an organization should
(a) Management helps in achieving group goals. provide good quality goods and services, create
(b) Management creates a dynamic organization. employment opportunities and adapt new
(c) Management increases efficiency. technology for the greater good of the people”.
(d) Management helps in achieving personal Identify the importance of management
objectives. mentioned in the given statement. (Choose the
Ans. (c) Management increases efficiency. correct alternative)
(iv) “Getting work done through others is a major (a) Management increases efficiency
task of a manager as per the views of Anil”. (b) Management creates a dynamic organization
 Competency Based Questions (CBQs) C-5

(c) Management helps in the development of (c) Management is an intangible force

society (d) Management is a group activity
(d) Management helps in achieving group goals Ans. (d) Management is a group activity
Ans. (c) Management helps in the development of (ii) “This managerial quality aims at securing unity
society of action in the realization of the common
(iii) “An organization must change itself and its goals purpose”.
according to the needs of the environment”. Which managerial quality is being talked about
Identify, from the following alternatives, the in the given statement? (Choose the correct
characteristic of management discussed in the alternative)
given statement. (Choose the correct alternative) (a) Cooperation
(a) Management is multidimensional (b) Coordination

COMPETENCY BASED
(b) Management is a goal oriented process (c) Effectiveness
(c) Management is a group activity (d) Efficiency
(d) Management is a dynamic function Ans. (b) Coordination
Ans. (d) Management is a dynamic function (iii) Identify the characteristic of managerial quality
(iv) Which organizational objective is mentioned in (identified in part (i)). Which is discussed in the
the given case. (Choose the correct alternative) given paragraph. (Choose the correct alternative)
(a) Survival (a) It integrates group efforts
(b) Growth (b) It ensures unity of action
(c) Profit (c) It is an all pervasive function
(d) Operational efficiency (d) It is the responsibility of all the managers
Ans. (b) Growth Ans. (c) It is an all pervasive function
(iv) Which one of the following functions is not
III. An organization is a collection of diverse

s
performed by Mr. Gopal Rao as the CEO of the
individuals with different needs. Every member

a
company.

iv D
of the group has a different purpose of joining the
(a) Coordinating the activities of different
organization but as members of the organization

Sh
departments.
they work towards fulfilling the common
(b) Ensuring welfare and survival of the organization.
organizational goal. Bhagwati Enterprises is
(c) Assigning necessary duties and
also such an organization. The firm deals in
responsibilities to the workers.
manufacturing of shoes. The company’s margins
(d) Formulating overall organizational goals
are under pressure and the profits and market
and strategies for their achievement.
share are declining. The production department
Ans. (c) Assigning necessary duties and
blames marketing for not meeting sales targets
responsibilities to the workers.
and marketing blames production department
IV. Shilpa is working as a marketing head in an
for producing goods, which are not of good
insurance company. She has been holding this
quality meeting customers’ expectations. The
position for long. She is an experienced manager
finance department blames both production and
who believes that organisations are made up
marketing for declining returns on investment
of people who have different personalities,
and poor marketing. On investigation the CEO
backgrounds, experiences and objectives.
of the company Mr. Gopal Rao found that the
According to her, people become part of the
organization was lacking an important quality
organization to satisfy their diverse needs.
of management. This managerial quality aims
Shilpa is of the view that all organisations have
at securing unity of action in the realization
to function in an environment that is constantly
of the common purpose. It acts as the binding
changing. Hence, during the spread of Corona
force between the departments and ensures that
virus pandemic, she came up with new insurance
all action is aimed at achieving the goals of the
products, which were designed as per the present
organization.
needs and requirements of the customers. Soon
On the basis of the above paragraph answer the
the insurance products developed by Shilpa
following questions:
became a hit and the organization was able to
(i) According to you, which characteristic of achieve its goals. The goal of the organization
management is lacking in Bhagwati Enterprises? which Shilpa wanted to achieve acted as a vital
(Choose the correct alternative) incentive for the continued successful operation
(a) Management is multidimensional of the enterprise. Before developing the new
(b) Management is a continuous process products, Shilpa determined in advance what is
 C-6 Shiv Das Chapterwise Question Bank (Business Studies XII)

to be done and who is to do it. She set goals in shifts. Sameer was able to achieve the production
advance and developed a way of achieving them target but at a higher production cost.
efficiently and effectively. On the basis of the above paragraph answer the
On the basis of the above paragraph answer the following questions.
following questions: (i) Name the function of management Sameer is
(i) During the spread of coronavirus pandemic, performing in the above paragraph.(Choose the
Nature and Significance of Management

Shilpa came up with new insurance products to correct alternative)

ensure ____________ of the company in the long (a) Planning
run. (b) Organisaing
(a) Growth (c) Directing
(b) Survival (d) Controlling
(c) Welfare Ans. (c) Directing
(d) Profit (ii) With reference to the above case, Sameer believes
Ans. (b) Survival in motivation, teamwork , communication and
(ii) Which importance of management is mentioned achievement of objectives. Sameer in the given
in the given case. (Choose the correct alternative) case is ....................... . (Fill in the blank with the
(a) Management increases efficiency correct alternative)
(b) Management creates a dynamic organization (a) Effective (b) Efficient
(c) Management helps in the development of (c) Cooperative (d) Goal oriented
society. Ans. (a) Effective
(d) Management helps in achieving group goals (iii) At which level of management, Sameer is
Ans. (b) Management creates a dynamic organization working . (Choose the correct alternative)
(iii) “Before developing the new product, Shilpa (a) Top level management

s
determined in advance what is to be done and (b) Middle level management

a
(c) Lower level management

iv D
who is to do it. She set goals in advance and
developed a way of achieving them efficiently (d) None of the above

Sh
and effectively”. Ans. (c) Lower level management
Which managerial function is achieved by (iv) Which of the following functions is performed
Shilpa here? (Choose the correct alternative) by Sameer as a foreman.
(a) Planning (a) Interpreting the policies formed by top
(b) Organizing management
(c) Directing (b) Assigning necessary duties and responsibili-
(d) Controlling ties to the workers.
Ans. (a) Planning (c) Directly overseeing the efforts of the workers
(iv) “The goal of the organization which Shilpa (d) Coordinating the activities of different
wanted to achieve acted as a vital incentive departments.
for the continued successful operation of the Ans. (c) Directly overseeing the efforts of the workers
enterprise”. VI. Sana is the branch manager of ABC Handicrafts
Which goal of the organization Shilpa wanted Pvt. Ltd. The company’s objective is to promote
to achieve? the sales of Indian handloom and handicraft
(a) Growth products. It sells fabrics, furnishings, ready-
(b) Survival mades and household items made out of
(c) Profit traditional Indian fabrics. Sana decides quantities,
(d) Efficiency variety, colour and texture of all the above items
Ans. (c) Profit and then allocates resources for their purchase
V. Sameer is a foreman in a factory. He directs all from different suppliers. She appoints a team
the members under him to follow the targets and of designers and crafts people in the company,
advises them to put their efforts in the direction who developed some prints for bed covers in
of the achievement of these targets. He leads, bright colours on silk. Although the products
influences and motivates the workers to perform looked very attractive and impressive, they were
relatively expensive on the front of affordability
the tasks assigned to them. He encourages the
for an average customer. Sana suggested that
employees to do their best. Sameer was assigned
they should keep the silk bed covers for special
a target of 1,000 units in the month of July. For
festive occasions and offer the cotton bed covers
this he and his team had to operate on double
on a regular basis to keep costs under control.
 Competency Based Questions (CBQs) C-7

On the basis of the above paragraph answer the (d) Management is a continuous process
following questions. Ans. (b) Management is a goal oriented process
(i) “She appoints a team of designers and crafts (iii) With reference to the above case, at which level
people in the company, who developed some of management Sana is working?
prints for bed covers in bright colour on silk.” (a) Lower level
Which function of management is highlighted (b) Top level
in this context? (c) Middle level
(a) Controlling (d) Shop floor
(b) Staffing Ans. (c) Middle level
(c) Planning (iv) “Sana suggested that they should keep the silk
(d) Directing bed covers for special festive occasions and offer

COMPETENCY BASED
Ans. (c) Staffing the cotton bed covers on a regular basis to keep
(ii) In the above case “company’s objective is to costs under control”.
promote the sales of Indian handloom and Which function of management is highlighted
handicraft products.” in this context?
The above line focuses on which feature of (a) Controlling
management? (b) Staffing
(a) Management is an intangible force (c) Organizing
(b) Management is a goal oriented process (d) Planning
(c) Management is pervasive in nature Ans. (a) Controlling



a s
Sh iv D
 Unit : Two
Principles of Management

1
Competency Based Questions
Principles of Management

 Multiple Choice Questions (c) Standardisation and simplification of work

(d) Method study  [Ans. (a)
1.
‘Principles of Management are not rigid 6. Which principle of scientific management is
prescriptions, which have to be followed considered as an extension of principle of

s
absolutely’. Identify the nature of management ‘Harmony not discord.’

iv D a
principles discussed in the given statement. (Choose the correct alternative)
(a) General Guidelines (b) Universal (a) Science not rule of thumb

Sh
(c) Flexible (d) Contingent [Ans. (c) (b) Equity
2. ‘The application of principles of management (c) Coordination not individualism
is dependent upon the prevailing situation (d) Development of each and every person to his
at a particular point of time’. Which nature or her greatest efficiency and prosperity.
of management principle is mentioned in the  [Ans. (c)
given statement. 7. ‘Management principles help the managers in
(a) Behavioural (b) Contingent better understanding of managerial situations
(c) Flexible (d) Universal [Ans. (b) and circumstances’. Which significance of
3. Which principle of Henri Fayol states that principles of management is highlighted in the
‘there should be one and only one boss for given statements.
every individual employee. (a) Optimum utilisation of resources and effective
(a) Discipline administration
(b) Unity of command (b) Providing managers with useful insights into
(c) Unity of direction reality
(d) Division of work [Ans. (b) (c) Scientific decisions
4. Violation of which of the following principle of (d) Fulfilling social responsibility.  [Ans. (b)
Henri Fayol is known as gang plank. 8. According to Henri Fayol ‘People and materials
(a) Remuneration of employees must be in suitable place at appropriate time for
(b) Scalar Chain maximum efficiency’. Identify the managerial
(c) Centralisation and Decentralisation principle discussed in the given statement.
(d) Discipline  [Ans. (b) (a) Discipline (b) Scalar Chain
5. Which of the following techniques of scientific (c) Unity of Direction (d) Order  [Ans. (d)
management aims at differentiating between 9. Which principle of Henri Fayol states that
efficient and inefficient workers. (choose the workers should be encouraged to develop and
correct alternative) carry out their plans for improvements.
(a) Differential piece wage system (a) Esprit de corps (b) Order
(b) Time Study (c) Initiative (d) Equity [Ans. (c)

C-8 Shiv Das Chapterwise Question Bank (Business Studies XII)

 Competency Based Questions (CBQs) C-9

10.
Which of the following statements best 15. Which technique of scientific management
describes mental revolution. is an extension of the principle of division of
(a) It implies change of attitude work and specialisation. (Choose the correct
(b) The management and workers should not play alternative)
the game of one upmanship (a) Standardisation of work
(c) Both Management and workers require each (b) Functional foremanship
other (c) Simplification of work
(d) Workers should be paid more wages[Ans. (c) (d) Differential piece wage system [Ans. (b)
11. Raj, a Manager decided that there will be 16. A firm is manufacturing Apparels and is
separate departments for finance, marketing, running under heavy losses. To recover from
production and sales in his company. By doing the losses, the management thought of shifting

COMPETENCY
so he is following a principle of Management. the unit to a backward area where labour is
Identify the principle of management followed available at a low cost. The management also
by Raj in the given situation. asked the workers to work overtime without
(Choose the correct alternative) any additional payment and promised to
(a) Division of work increase the wages of workers after achieving
(b) Centralisation and decentralisation its mission. Within a short period the company
(c) Order started earning profits because both the
(d) Unity of command  [Ans. (a) management and the workers honoured their
12. XYZ Ltd. is engaged in producing electricity from commitments. From the following options,
domestic garbage. There is almost equal division identify principle of management described in
of work and responsibility between workers and the above para.
Management. The management even takes workers (a) Discipline
into confidence before taking important decisions. (b) Cooperation not individualism

a s
All the workers are satisfied as the behaviour of the (c) Esprit de corps

iv D
management is very good. (d) Order [Ans. (a)
From the following options identify the principle of 17. Management should find ‘one best way to

Sh
management discussed in the given case. perform a task’. Which technique of scientific
(a) Initiative management is defined in this sentence?
(b) Science not rule of thumb (a) Time study (b) Motion study
(c) Cooperation not individualism (c) Fatigue study (d) Method study
(d) Equity [Ans. (c)  [Ans. (d)
13. Simco Ltd. is manufacturing files and folders from 18. She/He keeps machines materials tools etc.
the old clothes to discourage use of plastic files ready for operations by concerned workers.
and folders. For this they employ people from Whose work is described by this sentence
nearby villages where very less job opportunities

BASED
under functional foremanship.
are available. An employee, Atul, designed a plan (a) Instruction card clerk
for the cost reduction but it was not welcomed by (b) Repair Boss
the production manager. Another employee gave (c) Gang Boss
the same suggestion for improvement in design, (d) Route Clerk [Ans. (c)
but it was also not appreciated by the production Praveen is working as a production manager
19.
manager. in a factory. There is no class conflict between
From the following alternatives choose the the management and workers. The working
principle of management described in the above conditions are very good. The company is earning
para. huge profits. As a policy matter, management is
(a) Equity (b) Initiative sharing the gains with the workers because they
(c) Order (d) Discipline  [Ans. (b) believe that prosperity of the company cannot
14. Which technique of scientific Management exist for a long time without the prosperity of the
helps in establishing interchangeability of employees.
manufactured parts and products. From the following alternatives, Identify the
(choose the correct alternative) principle of management described in above para.
(a) Standardisation of work (a) Esprit De corps
(b) Division of work (b) Cooperation not individualism
(c) Functional foremanship (c) Science not rule of thumb
(d) Motion study [Ans. (a) (d) Harmony not discord  [Ans. (d)
 C-10 Shiv Das Chapterwise Question Bank (Business Studies XII)

20. Taylor in one of his principles of scientific 25. Which of the following techniques of scientific
management suggested ‘investigation of management helps in differentiating efficient
traditional methods through work study, and inefficient workers?
unifying the best practices and developing a (a) Time study
standard method, which would be followed (b) Motion study
throughout the organisation. Which principle of (c) Functional foremanship
scientific management is discussed in the given (d) Differential piece wage system [Ans. (d)
statement. (Choose the correct alternative) 26. Rahul, a manager decided that there will be
(a) Science not rule of thumb separate departments for finance, marketing,
(b) Harmony not discard production and sales in his company. By doing
(c) Cooperation not individualism so he is following a principle of management.
(d) Division of work [Ans. (a) Which of the following principles of management
21. ‘Principles of management are at the core of is followed by Rahul in the given case?
management theory’. Which importance of (a) Division of work
Principles of Management

principles of management is highlighted in the (b) Equity

above statement. (c) Order
(a) Optimum utilisation of resources and effec- (d) Unity of direction [Ans. (a)
tive administration 27. XYZ Ltd. is producing electricity from domestic
(b) Scientific divisions garbage. There is almost equal division of
(c) Meeting changing environment require- work and responsibility between workers and
ments management. The management even takes
(d) Management training, education and re- workers into confidence. All the workers are
search [Ans. (d) satisfied as the behaviour of management is very

s
22. Manoj is a managing director in a company. good.

a
He believes that employee turnover should be

iv D
State the principle of management described in
minimised to maintain organisational efficiency. the above para.

Sh
He is of the view that personnel should be (Choose the correct alternative)
selected and appointed after due and rigorous (a) Harmony not discord
procedure and once selected they should be (b) Cooperation not individualism
kept at their post for a minimum fixed tenure. (c) Science not rule of thumb
From the following options, choose the (d) Authority and responsibility [Ans. (b)
management principle followed by Manoj in 28. Which of the following is not a principle of
the given case. management given by Taylor?
(a) Remuneration of employees (a) Science not rule of thumb
(b) Stability of personnel (b) Functional foremanship
(c) Centralisation and discentralisation (c) Maximum not restricted output
(d) Discipline [Ans. (b) (d) Harmony not discord [Ans. (b)
23. “Any one can be called a manager irrespective 29. ‘The principles of management are not rigid
of the educational qualification possessed.” prescriptions, which have to be followed
Identify the characteristic of the profession that
absolutely.’ Which nature of principles of
Management does not fulfil in the statement
management is highlighted in the given
being discussed above.
statement?
(a) Ethical code of Conduct
(a) General guidelines
(b) Professional Association
(b) Universal applicability
(c) Restricted Entry
(c) Flexible
(d) Service Motive [Ans. (c)
(d) Contingent [Ans. (c)
24. ‘The application of Principles of management
30. ................. is the principle of management
is dependent upon the prevailing situation at a
particular point of time’. Identify the nature of according to which a manager should replace ‘I’
management principles mentioned in the given with we’ in all his conversations with workers.
statement. (Choose the correct alternative) (a) Division of work
(a) Universal (b) Scalar chain
(b) Flexible (c) Esprit de corps
(c) Contingent (d) Cooperation not individualism [Ans. (c)
(d) Mainly behavioural [Ans. (c) 31. Principles of management are not ................. .
 Competency Based Questions (CBQs) C-11

(Fill in the blank choosing the correct confusion among the employees regarding the
alternative) reporting as well as differentiation of work.
(a) Universal (b) Flexible Which principle of Henri Fayol is violated here.
(c) Behavioural (d) Absolute [Ans. (d) (a) Unit of Command (b) Unity of Direction
32. ................. involves a change in the attitude of (c) Incentive (d) Order [Ans. (b)
workers and management towards and another 37. Match the Nature of principles of management
from competition to cooperation. in Column I with their respective Explanation
(a) Cooperation not individualism in Column II.
(b) Mental revolution Columm I Columm II
(c) Unity of direction A. Universal (i) Principles of management
(d) Unity of command [Ans. (b)

COMPETENCY
Applicability are not rigid prescriptions.
33. Arun is a managing director in a company. He B. Flexible (ii) Principles of management
believes that employees turnover should be are intended to apply to all
minimised to maintain organisational efficiency. types of organisations.
C. General (iii) Management principles do
He is of the view that personnel should be selected
guidelines not provide readymade
and appointed after due and rigorous procedure strait jacket solutions to all
and once selected they should be kept at their post managerial problems.
for a minimum fixed tenure.
From the following options, choose the (a) A-(i), B-(iii), C-(ii)
management principle followed by Arun in the (b) A-(i), B-(ii), C-(iii)
given case. (c) A-(ii), B-(i), C-(iii)
(a) Remuneration of employees (d) A-(iii), B-(i), C-(ii) [Ans. (c)
(b) Stability of personnel  Case Based Questions

s
(c) Centralisation and decentralisation

a
I. The principles of management are intended for

iv D
(d) Discipline [Ans. (b)
34. Aqualife Ltd. has decided to become the market all types of organisations, business as well as

Sh
leader in selling water bottles. The company non-business, small as well as large, public as
decides to take care of all the departments. The well as private sector, manufacturing as well as
top management decides to set standards for all service sectors. They are not rigid prescriptions,
the business activities right from the purchase of which have to be followed absolutely. They can
raw material to manufacturing and packaging of be modified by the manager as per the prevailing
the water bottles. situation. Adherence to these principles adds to
Which technique of scientific management is managers’ knowledge, ability and understanding
used here? of managerial situations and circumstances. It
(a) Simplification (b) Standardisation enables managers to learn from past mistakes

BASED
(c) Differential piece wage system and conserve time by solving recurring problems
(d) Method study [Ans. (b) quickly. These principles of management hold
great relevance and managers should try to
35. 15 new employees have started their career in
follow them as far as possible. Often certain
Bhagwati Enterprises Ltd. The employees are
principles of management are violated and the
new to the environment of the organisation and
entire organization suffers. For example, Raman
have no idea about the demands of the new job.
is working as a production manager in CFL Ltd.
The management has decided to give them three
which manufactures CFL bulbs. His subordinate
months of time to show their results.
Arjun designed a plan for cost reduction but it
Which principle of Henri Fayol is mentioned was not welcomed by Raman. Another employee
here? gave some suggestions for improvement in design
(a) Stability of personnel but it was also not appreciated by Raman. This
(b) Discipline resulted in dissatisfaction among the employees
(c) Order which further resulted in poor performance of
(d) Unity of Direction [Ans. (a) the employees.
36. School time is a company engaged in On the basis of the above paragraph answer the
manufacturing stationery items, school bags and following questions:
school uniforms. The company has the same unit (i) Identify the nature of principle of management
producing all the three products. This leads to discussed in the given para. (Choose the correct
alternative)
 C-12 Shiv Das Chapterwise Question Bank (Business Studies XII)

(a) General guidelines (b) Order (c) Equality

(b) Universal applicability (d) Remuneration of employees
(c) Formed by practice and experimentation Ans. (d) Remuneration of employees
(d) Contingent (ii) Which principle of scientific management
Ans. (b) Universal applicability advocates complete agreement between the
(ii) Identify the nature of management principles managers and workers? (Choose the correct
when it is said that principles of management alternative)
can be modified as per the prevailing situation. (a) Harmony not discord
(Choose the correct) (b) Cooperation not individualism
(a) Flexible (b) Contingent (c) Science not rule of thumb
(c) Behavioural (d) Absolute (d) Development of each and every person to
Ans. (a) Flexible his/her greatest efficiency and prosperity.
(iii) ‘It enables managers to learn from past mistakes Ans. (a) Harmony not discord
and conserve time by solving recurring problems (iii) Which principle of scientific management is the
Principles of Management

quickly’. extension of the principle (identified in part (ii))?

According to this statement, the principles of (Choose the correct alternative)
management are important because they help in (a) Harmony not discord
......................... . (b) Cooperation not individualism
(a) Meeting changing environment require- (c) Science not rule of thumb
ments (d) Development of each and every person to
(b) Optimum utilization of resources and effec- his/her greatest efficiency and prosperity
tive administration Ans. (b) Cooperation not individualism
(c) Providing managers with useful insights into (iv) ‘One of his techniques aimed at differentiating

s
reality between efficient and inefficient workers’.

a
(d) Fulfilling social responsibility Name the technique of scientific management

iv D
reflected in the given statement. (Choose the
Ans. (c) Providing managers with useful insights into

Sh
correct alternative)
reality
(a) Functional foremanship
(iv) As Raman did not welcome the suggestions (b) Method study
of other employees, which principle of (c) Differential piece wage system
management is violated by him? (d) Standardisation and simplification of work
(a) Discipline (b) Order Ans. (c) Differential piece wage system
(c) Unity of direction (d) Initiative
Ans. (d) Initiative III. The application of principles of management
is dependent upon the prevailing situation
II. Principles of Taylor and Fayol are mutually at a particular point of time. The application
complimentary. One believed that management of principles has to be changed as per the
should share the gains with the workers, while the requirements. These principles are logical rather
other suggested that employees’ compensation than blind faith. They are based on objective
should depend on the earning capacity of the assessment of the situation. Management
company and should give them a reasonable decision taken on the basis of principles are free
standard of living. Taylor also developed from bias and prejudice. Managers often try to
certain techniques of scientific management apply these principles in various day to day
which aimed at improving the performance of situations. violation of these principles can result
the employees. One of his techniques aimed at in negative consequences in the organization.
differentiating between efficient and inefficient For example, Sushma and Suresh are working
workers. The purpose behind this technique is to in a Multinational company at the same level.
reward efficient workers and motivate inefficient Both are working hard and are happy with their
workers to perform better. employer. Suresh had the habit of backbiting and
On the basis of the above paragraph answer the wrong reporting about his colleagues to impress
following questions: his boss. All the employees knew about it. At the
time of performance appraisal, the performance
(i) Which principle of Henri Fayol is being referred
of Sushma was judged better than Suresh. Even
to in the above paragraph? (Choose the correct
then their boss Nikhil decided to promote Suresh
alternative)
stating that being a female Sushma will not be
(a) Discipline
 Competency Based Questions (CBQs) C-13

able to handle the complications of a higher post. shoes, toys, books, medicines, etc. from donors.
This resulted in a great deal of dissatisfaction for At Sakaar Foundation’s office in Lucknow the
Sushma. Nikhil gave priority to his own interest material collected is segregated, classified and
over the interest of the organization. Since he put in shelves and boxes that are numbered
personally liked Suresh more than Sushma, systematically. There is a specific place for each of
hence he promoted Suresh instead of Sushma, these items and volunteers put everything at their
ignoring the overall interest of the organization. respective places. The volunteer work is divided
On the basis of the above paragraph answer the into specific jobs like fund raising, field visits,
following questions: social media updates and so on. Each volunteer
(i) “The application of principles of management is a part of a particular team, depending on
their competency and training. Each volunteer

COMPETENCY
is dependent upon the prevailing situation at
particular point of time”. becomes specialized in their respective field,
What is the nature of principles of management leading to efficient utilization of human effort.
that is depicted by the above statement? (Choose The management of Sakaar Foundation does not
the correct alternative) close its ears to any constructive suggestion made
(a) Universal applicability by the volunteers. There is an equal division
(b) Flexible (c) Contingent of work and responsibility between volunteers
(d) Mainly behavioural and management. All day long the management
Ans. (d) Contingent works side by side with the volunteers helping,
(ii) ‘Decisions based on management principles are encouraging and smoothing the way for them.
free from bias and prejudice’. On the basis of the above paragraph answer the
This statement shows which importance of following questions:
principles of management. (Choose the correct (i) _____________ is considered as the father of

s
alternative) scientific management. (Fill up the blank with

iv D a
(a) Scientific decisions the correct alternative)
(b) Fulfilling social responsibility (a) Peter Drucker (b) F.W.Taylor

Sh
(c) Providing managers with useful insights into (c) Henri Fayol (d) Abraham Maslow
reality Ans. (b) F.W.Taylor
(d) Meeting changing environment require- (ii) Identify the principle of scientific management
ments adopted by Sakaar Foundation in the above
Ans. (a) Scientific decisions case. (Choose the correct alternative)
(iii) ‘Nikhil gave priority to his own interest over the (a) Science not rule of thumb
interest of the organisation’. (b) Cooperation not individualism
Which one of the following principles have (c) Harmony not discord
been violated in the given case. (d) Development of each and every person to

BASED
(a) Order (b) Equity his/her greatest efficiency and prosperity.
(c) Discipline (d) Initiative Ans. (b) Cooperation not individualism
Ans. (b) Equity (iii) Which principle of management means “a
(iv) Violation of which principle of management specific place for everything and everyone” as
prompted Nikhil to further violate the adopted by Sakaar Foundation? . (Choose the
managerial principle identified in part (iii) correct alternative)
(Choose the correct alternative) (a) Discipline (b) Order
(a) Division of work. (c) Initiative (d) Scalar chain
(b) Unity of direction Ans. (b) Order
(c) Subordination of individual interest to gen- (iv) Identify the importance of principles of
eral interest management that can be linked with the given
(d) Centralization and decentralization case. (Choose the correct alternative)
Ans. (c) Subordination of individual interest to gen- (a) Fulfilling social responsibility
eral interest (b) Optimum utilization of resources and effec-
IV. Sakaar Foundation is an NGO(Non-Government tive administration
organization) working to improve thelives of (c) Meeting changing environment require-
children with medical needs, the homeless and ments
victims of natural disasters. Apart from donations (d) Providing managers with useful insights into
in Cash, they collect dry ration, old clothes, reality
Ans. (a) Fulfilling social responsibility
 C-14 Shiv Das Chapterwise Question Bank (Business Studies XII)

V. Vishesh completed his MBA at a reputed (a) Method study (b) Motion Study
business school in Lucknow. He was impressed (c) Standardization and simplification of work
by the principles and techniques of scientific (d) Time study
management developed by F.W.Taylor. On Ans. (b) Motion Study
completing his MBA, he wanted to apply (iii) Identify the principle of Scientific Management
Scientific Management in his family’s business that helped Vishesh in investigating the
of fast food chain of restaurants named ‘Burger traditional methods through work study and
Mania’. His main goal was to reduce costs with unifying the best practices. (Choose the correct
increased output. To begin with, he wanted alternative)
to develop a standard method which would (a) Science not rule of thumb
be followed throughout the organization. So, (b) Method study
he investigated traditional methods through (c) Harmony not discord
work study and unified the best practices. The (d) Cooperation not individualism
standard method,i.e., the best way of doing the Ans. (a) Science not rule of thumb
Principles of Management

job was then developed taking into account all (iv) ‘Vishesh also believed that each person should
parameters right from the procurement of raw not only be scientifically selected but should
materials till the delivery of the final product also be given the required training to increase
to the customer. Vishesh also believed that efficiency.’
each person should not only be scientifically Identify the principle of Scientific Management
selected but should also be given the required mentioned in the given statement. (Choose the
training to increase efficiency. For this, he set correct alternative)
up a special training unit called ‘Hamburger’ (a) Cooperation not individualism
in Bengaluru where the workers were given the (b) Stability of personnel

s
required training to learn the best method. At (c) Harmony not discord

a
the factory, the ingredients making up a burger (d) Development of each and every person to

iv D
were strategically placed to reduce the time his/her greatest efficiency and prosperity.

Sh
taken for excess movements. The standard time Ans. (d) Development of each and every person to
and other parameters were determined on the his/her greatest efficiency and prosperity.
basis of work study and Vishesh rewarded the VI. Amar is the Managing director in a garment
workers for meeting the standard output. Now, manufacturing company. He is an experienced
‘Burger Mania’ has standardized processes, raw manager and firmly believes in application
material, time, machinery, trained staff and of principles of management in day to day
working conditions that ensure that the food managerial situations. He believes that
they send out to their customers has the same management principles are flexible to adapt to
high standards of excellence and level of quality dynamic business environment. He believes in
in every chain or franchise. The application producing more and better work for the same
of Scientific Management to every aspect of effort. He always hires specialists for various job
restaurant operations led to ‘Burger Mania’s’ positions. This results in efficient and effective
widespread success. output. Hence the organization has separate
On the basis of the above paragraph, answer the departments for finance, marketing, production
following questions: and human resource. Being a management
(i) Identify the technique of Scientific Management expert, Amar believes in the concept of having
used by Vishesh to reward the workers for one and only one boss for every individual
meeting the standard output. (Choose the employee. He always aims at avoiding dual
correct alternative) subordination within the organization. Under
(a) Time study (b) Motion study his direction and supervision, his company has
(c) Differential piece system achieved new heights within a short span of time.
(d) Functional foremanship As the Managing director, he formulates policies
Ans. (c) Differential piece system that aims at minimizing employee turnover and
(ii) ‘At the factory, the ingredients making up a maintaining organizational efficiency. Hence
burger were strategically placed to reduce the his organization selects personnel after due and
time taken for excess movements.’ rigorous procedure, and once a person is selected,
Identify the technique of Scientific Management he is kept at his post for a minimum fixed tenure.
mentioned in the given statement.(Choose the This helps in improving the overall efficiency of
correct alternative) the organization.
 Competency Based Questions (CBQs) C-15

On the basis of the above paragraph, answer the towards her female employees, when it comes to
following questions: solving the conflicts among employees.
(i) Identify which importance of principles of
On the basis of the above paragraph, answer the
management is mentioned here?(Choose the following questions.
correct alternative) (i) Aditi has divided the work in smaller units
(a) Providing managers with useful insights into and each employee is well trained to perform
reality his/ her task efficiently. Which principle of
(b) Meeting changing environment require- management is being followed here?
ments (a) Centralization and Decentralization
(c) Fulfilling social responsibility (b) Division of work

COMPETENCY
(d) Scientific decisions (c) Discipline
Ans. (b) Meeting changing environment requirements (d) Order
(ii) Identify the principle of management that Ans. (b) Division of work
suggests setting up of separate departments for (ii) “The sales persons are allowed to close a deal
finance, marketing, production etc. within an with a buyer by giving a maximum of 5 percent
organization. (Choose the correct alternative) discount, whereas the decision to give any further
(a) Discipline
discount rests with Aditi as the final authority”.
(b) Centralization and Decentralisation
Identify the principle of Management being
(c) Division of work
followed here:
(d) Authority and responsibility
(a) Centralization and Decentralisation
Ans. (c) Division of work
(b) Authority and Responsibility
(iii) ‘He always aims at avoiding dual subordination
within the organization’. Name the principle (c) Unity of Command
(d) Unity of Direction

s
of management that aims at avoiding dual

a
Ans. (a) Centralization and Decentralisation

iv D
subordination. (Choose the correct alternative)
(a) Order (b) Equity (iii) “Therefore, when the business was doing well,

Sh
(c) Unity of direction (d) Unity of command she honoured her commitment by giving bonus
Ans. (d) Unity of command to her employees.”
(iv) “As a Managing Director, he formulates policies Which principle of management is being
that aim at minimizing employee turnover and highlighted here?
maintaining organizational efficiency”. (a) Discipline
Which principle of management Amar is (b) Order
following? (Choose the correct alternative) (c) Remuneration to Employees
(a) Order (b) discipline (d) Unity of Direction
(c) Equity (d) Stability of personnel Ans. (a) Discipline

BASED
Ans. (d) Stability of personnel (iv) Aditi tends to be more biased towards her
VII. After completing her Bachelors in Fashion female employees, when it comes to solving the
Designing from a well-known college in France, conflicts among employees. Which principle is
Aditi has opened a boutique in a posh market in being violated here?
Kolkata. She has divided the work in smaller units (a) Discipline (b) Order
and each employee is well trained to perform (c) Equity (d) None of these
his/her task efficiently. The sales persons are Ans. (c) Equity
allowed to close a deal with a buyer by giving
VIII. Ramesh is day and night involved in the
a maximum of 5 percent discount, whereas the
organizing of his business. He has given job to
decision to give any further discount rests with
every employee based upon his capability and
Aditi as the final authority. In the earlier period
of her business venture, employees were asked experience. As there has been proper division
to put in extra hours of work. In return she had of work and systematic allocation of tasks
promised to give them a special incentive within the productivity is increasing. The size of the
a year. Therefore, when the business was doing company has increased in the recent past. The
well, she honoured her commitment by giving related activities which are similar in nature are
bonus to her employees. She also instructed grouped together. Everything was going well in
her employees that communication from top the organisation until recently. The company has
to bottom should follow the official lines of recently seen a deficit of exchange of information
command. However, she tends to be more biased across functionally different departments.
 C-16 Shiv Das Chapterwise Question Bank (Business Studies XII)

On the basis of the given paragraph, answer the

idea behind is to improve the productivity of all
following questions: the workers.
(i) Which importance of organizing is highlighted On the basis of the above paragraph, answer the
in be above case: following questions:
(a) Optimum utilisation of resources (i) Which technique of scientific management is
(b) Effective administration employed by Ganesh leathers by keeping eight
(c) Benefits of specialisation managers.
(d) Expansion and growth (a) Time study
Ans. (c) Benefits of specialisation (b) Motion study
(ii) Now the related activities which are similar (c) Functional foremanship
in nature are grouped together. Which step of (d) Standardisation of work
organising is highlighted in the above case: Ans. (c) Functional foremanship
(a) Identification and division of work (ii) Which principle of Henri Fayol is followed by
Principles of Management

(b) Departmentalisation the company in the above case.

(c) Assignment of duties (a) Unity of direction
(d) Establishing authority relationship (b) Unity of command
Ans. (b) Departmentalisation (c) Initiative
(iii) The company has recently seen a deficit of (d) Discipline
exchange of information across functionally Ans. (b) Unity of command
different departments. Which one disadvantage (iii) Which nature of principles of management is
of functional structure is highlighted above: mentioned in the given para.
(a) Function allocative (a) Universal applicability
(b) Conflict of interests (b) Flexibility

s
(c) General guidelines

a
(c) Inflexibility

iv D
(d) Problems in coordination (d) Contingent
Ans. (d) Problems in coordination Ans. (c) General guidelines

Sh
(iv) Which technique of scientific management
(iv) Identify the type of organisational structure
is used by the firm to differentiate between
which facilitates occupational specialisation.
efficient and inefficient workers.
(a) Functional structure
(a) Time study
(b) Horizontal structure
(b) Motion study
(c) Network structure
(c) Differential piece rate system
(d) Divisional structure
(d) method study
Ans. (a) Functional structure
Ans. (c) Differential piece rate system
IX.
Ganesh Leathers is a shoe manufacturing
X. Care Ltd. is a well known cement company in
company. The firm has decided to increase
India. It is able to earn adequate revenues to cover
the productivity of its workers. For this the
costs. Its capital base, number of employees and
firm has chalked out a plan. It will be hiring production turnover has increased manifolds
operational managers to work at the lower levels over the years. The rate of profitability of the
of management. It has decided to keep eight business is also creditable. The employees of the
managers over a group of workers. Thus every company are happy and satisfied. The overall pay
worker has to report to all these eight managers. and compensation paid by the company is fair to
The managing director of the company Mr. both- employees and the organisation. There is
Ganesh Tiwari is of the view that the principles complete cooperation between the workers and
of management are guidelines to action but do management. The spirit of competition has been
not provide readymade straitjacket solutions replaced by the spirit of cooperation within the
to all managerial problems. This is so because organisation. As a part of its moral obligation,
real business situations are very complex and the company has taken many initiatives for
dynamic and are a result of many factors. providing employment to specially abled persons
According to him it is necessary to differentiate and promoting literacy in the rural areas.
between efficient and inefficient workers. Hence, On the basis of the above paragraph, answer the
he introduced specific rate of wage payment for following questions:
those who performed above standard and for (i) ‘It is able to earn adequate revenue to cover
those who performed below standard. The basic costs’.
 Competency Based Questions (CBQs) C-17

Which organisational objective is achieved by (b) Harmony not discord

the company in the given statement. (c) Cooperation not individualism
(a) Growth (b) Survival (d) Development of each and every person to
(c) Profit (d) Diversification his or her greatest efficiency and prosperity.
Ans. (b) Survival Ans. (c) Cooperation not individualism
(ii) Name the principle of Fayol followed by the (iv) Which importance of management is discussed
company in the given case. in the given case.
(a) Discipline (a) Management increases efficiency
(b) Order (b) Management helps in the development of
(c) Remuneration of employees society
(d) Unity of direction (c) Management creates a dynamic organisa-

COMPETENCY
Ans. (c) Remuneration of employees tion
(iii) Which principle of scientific management is (d) Management is an intangible force
followed by the company in the given case: Ans. (b) Management helps in the development of
(a) Scientific not rule of thumb society



a s
Sh iv D

BASED
 SKV VIDHYAASHRAM SR. SEC. SCHOOL
KANDAMPALAYAM, TIRUCHENGODE

CBSE - GR-XII - COMPUTER SCIENCE WITH PYTHON

(2021 - 2022)

TERM- 1 BOARD EXAMINATIONS

UNIT-1 PYTHON MCQ’S
(CHAPTER WISE AND TOPIC WISE)

CHAPTER-1 - PYTHON REVISION TOUR-1

MULTIPLE CHOICE QUESTIONS

1. Which keyword can be used in any place in Python code to tell interpreter “to do
nothing” and move to next instruction
skip
continue
next
pass
Correct answer
pass

2. Are there tools available to help find bugs, or perform static analysis?
Yes, PyErrs.
Yes, PyChecker and Pylint.
No, you must find the bugs on your own.
Yes, PyStats.
Correct answer
Yes, PyChecker and Pylint.

3. Python was created by ____________.

James Gosling
Steve Jobs
Guido van Rossum
Google
Guido van Rossum

What is used to define a block of code (body of loop, function etc.) in Python?
Curly braces
Parenthesis
Indentation
Quotation

4. A Python paragraph comment uses the style ________.

P SURESH BABU, PGT-COMPUTER SCIENCE Page 1 of 352
// comments //
/ comments /
''' comments '''
/# comments #/

Correct answer
''' comments '''

5. What does the expression string1 + string2 do?

Repeats string1 string2 times (string2 must be in numeric format).
Concatenates string1 and string2.
It's a syntax error.

Adds string1 to string2 (both must be in numeric format).

Correct answer
Concatenates string1 and string2.

6. Python is compiled language. True or False?

True
False
Correct answer
False

7. Which of these should you include in order to pass variables to a script?

from sys import getarg
from system import argv
from sys import args
from sys import argv
Correct answer
from sys import argv

8. Which of the following statements is true?

Python is an interpreted language.
Python is a high level programming language.
Python is an object-oriented language.
All of the above.
Correct answer
All of the above.

9. In Python, 'Hello', is the same as "Hello"

True
False

10. What is the correct file extension for Python files?

.pyth
.pt

P SURESH BABU, PGT-COMPUTER SCIENCE Page 2 of 352

.pyt
.py
Correct answer
.py

11. In Python, a syntax error is detected by the ________ at _________.

compiler/at compile time
interpreter/at runtime
compiler/at runtime
interpreter/at compile time
Correct answer
interpreter/at runtime

12. Which of the following is correct?

Comments are for programmers for better understanding of the program.
Python Interpreter ignores comment.
You can write multi-line comments in Python using triple quotes, either ''' or """.
All the above
Correct answer
All the above

13. Is it possible to link a Python program to code written in C?

Yes; the C code can be in a form of a dynamically or a statically linked library.
No, it is impossible.
Yes, but the C code must be provided in a form of a dynamically linked library.
Yes, but C code must be provided in a form of statically linked library.

Correct answer
Yes; the C code can be in a form of a dynamically or a statically linked library.

14. Which of the following is correct?

Python Interpreter ignores comment.
Comments are for programmers for better understanding of the program.
You can write multi-line comments in Python using triple quotes, either ''' or """.
All of the above
Correct answer
All of the above

15. Is it possible to check for more than one error in one except line?

Yes, if the exception types are enclosed in parentheses.

No, it is not possible.
Yes, if the exception types are enclosed in square brackets.
Yes, if the exception types are enclosed in curly braces.
Correct answer
Yes, if the exception types are enclosed in parentheses.

P SURESH BABU, PGT-COMPUTER SCIENCE Page 3 of 352

16. Python syntax is case-sensitive.
True
False

17. A ___________ error does not cause the program to abort, but produces incorrect
results.
syntax
runtime
logical
Correct answer
logical

18. ________ is interpreted.

Python
C++
Ada
Pascal

19. Which of the following statements is true?

Python 3 is a newer version, but it is backward compatible with Python 2.

Python 3 is a newer version, but it is not backward compatible with Python 2.
A Python 2 program can always run on a Python 3 interpreter.
A Python 3 program can always run on a Python 2 interpreter.
Correct answer
Python 3 is a newer version, but it is not backward compatible with Python 2.

20. A Python line comment begins with ________.

//
/
#
$$

21. What is a correct syntax to output "Hello World" in Python?

print("Hello World")
echo("Hello World");
echo "Hello World"
p("Hello World")

22. ________ is an object-oriented programming language.

Java
C++
Python

P SURESH BABU, PGT-COMPUTER SCIENCE Page 4 of 352

All the above
Correct answer
All the above

23. How do you insert comments in Python code?

#This is a comment
/This is a comment/
//This is a comment
//This is a comment#
Correct answer
#This is a comment
24. Which of the following is not a keyword?

eval
assert
nonlocal
pass
Correct answer
eval

25. What is the output of the following code?

25
75
35
None
Correct answer
None

26. Which of the following is not a keyword?

open
lambda
is
except
Correct answer
open

27. Select the correct output of the following code.

P SURESH BABU, PGT-COMPUTER SCIENCE Page 5 of 352

Python
15
Blank
Correct answer
Python

28. All keywords available in Python are in

Uppercase
Lowercase
Both uppercase and lowercase
CamelCase

Correct answer
Both uppercase and lowercase

29. Is Python case sensitive when dealing with identifiers?

Yes
None of the above
No
machine dependent

Correct answer
Yes

30. Which of the following is not a variable?

in
on
it
__init__
Correct answer
in

31. Which of the following are Python reserved words (keywords):

default
and
goto
class
None
Correct answer
class
P SURESH BABU, PGT-COMPUTER SCIENCE Page 6 of 352
32. All keywords in Python are in _________

Lower case
Upper case

None of the mentioned

Capitalized
Correct answer
None of the mentioned

33. From the execution of the statements n = 300, m = n how many objects and
references will be created?

Two objects, two references

One object, two references
Two objects, one reference
One object, one reference

Correct answer
One object, two references

34. What is the output of the following code?

70
63
152530
TypeError: unsupported operand type(s) for +: 'int' and 'str'
Correct answer
TypeError: unsupported operand type(s) for +: 'int' and 'str'

35. What Python built-in function returns the unique number assigned to an object:

refnum()
id()
ref()
identity()

Correct answer
id()

36. Which of the following is valid ?

P SURESH BABU, PGT-COMPUTER SCIENCE Page 7 of 352

_var = 'python'
__var = 'python'
_name_ = 'python'
All the above
Correct answer
All the above

37. In Python, a variable may be assigned a value of one type, but later it can assigned a
value of a different type:

True
False

38. What is the maximum possible length of an identifier or an attribute ?

32
64
73
Any length
Correct answer
Any length

39. How to swap two variables in one line ?

x=y
x ^= y ^= x ^= y
x, y = y, x
(x ^= y), (y ^= x), (x ^= y)

Correct answer
x, y = y, x

40. What is the maximum possible length of an identifier?

31 characters
63 characters
79 characters
None of the above

41. What is the output of the following code?

P SURESH BABU, PGT-COMPUTER SCIENCE Page 8 of 352

0
63
Error
None

42. Which of the following is an invalid statement?

num = 1,000,000
xyz=123
x,y,z = 1, 2, 3
x_y_z = 1,000,000
Correct answer
xyz=123

43. Which of the following cannot be a variable ?

_name_
def
at
on

Correct answer
def

44. Which of the following cannot be a variable?

__init__
in
it
on
Correct answer
in

45. Why are local variable names beginning with an underscore discouraged?

they are used to indicate a private variables of a class

they confuse the interpreter
they are used to indicate global variables

they slow down execution

Correct answer
they are used to indicate a private variables of a class

P SURESH BABU, PGT-COMPUTER SCIENCE Page 9 of 352

 46. Which of the following is not a keyword?

pass
class
max
def

47. Which of the following are valid Python variable names:

ver1.3
return
home_address
route66
Age
4square

48. What is the output of the following code?

50
100
Error
None
Correct answer
100

49. What is the output of the following code?

75
0

Error
None
Correct answer
75

50. What is the output of the following code?

P SURESH BABU, PGT-COMPUTER SCIENCE Page 10 of 352

 0
70
Error
None
Correct answer
Error

51. Which of the following is an invalid variable?

odd_num_1
1_odd_num
num

Correct answer
1_odd_num

52. What is the output of the following code?

JhonsJhonsJhonsJhons
Jhons

JhonsJhonsJhonsJhonsJhonsJhons
Syntax Error
Correct answer
JhonsJhonsJhonsJhonsJhonsJhons

53. In Python, a variable must be declared before it is assigned a value:

True
False

54. What is the output of the following code?

P SURESH BABU, PGT-COMPUTER SCIENCE Page 11 of 352

 25
15
Error
None

55. Is Python case sensitive while dealing with identifiers?

Yes
No
OS dependent
None of the above
Correct answer
Yes

56. What is the output of the following code?

25
15
Error
None
Correct answer
25

57. Output of print(f"Python {3 + .2}")

3.2
3+.2
Shows error
Python 3.2
Correct answer
Python 3.2

58. Which of the following is an invalid variable?

_var_
1var
_var_1
All the above
Correct answer
1var

59. Which of the following is an invalid statement?

P SURESH BABU, PGT-COMPUTER SCIENCE Page 12 of 352

 a_b_c = 100
abc = 100, 'python'
a b c = 1 00
a, b, c = 1, 0, 0

60. Which of the following statements assigns the value 100 to the variable x in Python:

let x = 100
x := 100
x ← 100
x = 100
x << 100
Correct answer
x = 100

61. In Python if a variable is assigned a value anywhere within the function’s body, it’s
assumed to be a local unless explicitly declared as global.

True
False

62. Which of the following is true for variable names in Python?

all private members must have leading and trailing underscores

underscore and ampersand are the only two special characters allowed
unlimited length
none of the mentioned
Correct answer
unlimited length
63. Which of the following is not a complex number?

a = 2 + 3j
a = complex(2, 3)
a = 2 + 3l
a = 2 + 3J
Correct answer
a = 2 + 3l

64. Boolean type is a subtype of Integer data type in Python

True
False

Correct answer
True

65. What is the result of round(0.5) - round(-0.5)

P SURESH BABU, PGT-COMPUTER SCIENCE Page 13 of 352

 1.0
2.0
0.0
None of the mentioned

66. Given a function that does not return any value, What value is thrown by default
when executed in shell.

int
bool
void
None
Correct answer
None

67. Select all immutable basic data types:

Dictionary
String
Integer
Set
Float
List
Tuple

68. What gets printed?

abb
abb abb
abb 2
2
Error
Correct answer
Error

69. What gets printed

<class 'set'>
<class 'dict'>
<class 'list'>
P SURESH BABU, PGT-COMPUTER SCIENCE Page 14 of 352
 <class 'tuple'>
<class 'object'>

70. In order to store values in terms of key and value which core data type is used.

list
tuple
class
dictionary
Correct answer
dictionary

71. What will be the output of the following Python code snippet?

indentation Error
cannot perform mathematical operation on strings

hello2
hello2hello2
Correct answer
indentation Error

72. If x and y are strings, which of the following is equivalent to [x] + [y] ?

[x].extend([y])
[x,y]
[x + y]
[x].append(y)
Correct answer
[x,y]

73. What gets printed?

<class 'function'>
<class 'tuple'>
<class 'NoneType'>
<class 'str'>
<class 'type'>

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 74. Which of the following is incorrect?

a = 0b101
a = 0x4f5
a = 19023
a = 03964

75. In order to execute an operation over arguments of different data types, convert all of
them to the same type beforehand.

True
False
Correct answer
False

76. What gets printed?

<class 'int'>
<class 'list'>
<class 'tuple'>
<class 'dict'>
<class 'set'>

77. What should the below code print?

<class 'complex'>
<class 'unicode'>
<class 'int'>
<class 'float'>
<class 'dict'>
Correct answer
<class 'complex'>

78. Select all valid basic data types in Python 3

Double
String
Integer
Boolean
Float

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 Decimal
Union
Complex number
Correct answers
String
Integer
Float
Complex number

79. Select all numeric data types in Python

String
Integer
Double
Float
Complex number

80. What error occurs when you execute the following Python code snippet?

SyntaxError
NameError
ValueError
TypeError
Correct answer
NameError

81. What is the return value of trunc()?

int
bool
float
None

Correct answer
int

82. What gets printed?

<class 'int'>
<class 'number'>
<class 'float'>
<class 'double'>
<class 'tuple'>

P SURESH BABU, PGT-COMPUTER SCIENCE Page 17 of 352

 Correct answer
<class 'float'>

83. What is the output of print 0.2 + 0.3 == 0.5?

True
False
Error

Correct answer
True

84. Which of the following is incorrect?

float('inf')
float('nan')
float('56'+'78')
float('12+34')
Correct answer
float('12+34')

85. Complex numbers in Python have real and imaginary parts. In Python they are
represented as:

One Integer and one floating point number

Each is floating point number
Each is Integer
Both are strings

86. List in Python can hold elements of same type only. True or False?

True
False
Correct answer
False

87. Strings in Python should be en-quoted in double quotation marks (“). True or False?

True
False
Correct answer
False

88. What data type is the object below?

P SURESH BABU, PGT-COMPUTER SCIENCE Page 18 of 352

 list
dictionary
array
tuple

89. What is the output of the following code?

<class 'NoneType'>

<class 'tuple'>
<class 'type'>
<class 'function'>
<class 'bool'>
Correct answer
<class 'function'>

90. Which of the following data types can be used as keys in dictionaries in Python?
Select all that apply

List
Set
Integer
String
Dictionary
Any type of value
Correct answer
Any type of value

91. What does ~~~~~~6 evaluate to?

6
-5
-11
11
Correct answer
6

92. Which of the following results in a SyntaxError?

‘”Once upon a time…”, she said.’

“He said, ‘Yes!'”
‘3\’
”’That’s okay”’

93. In Python types are directly interpreted by the compiler, so check the following
operation to be performed.
P SURESH BABU, PGT-COMPUTER SCIENCE Page 19 of 352
 Objective is to make sure a has a integer value, select all that apply (Python 3.xx)
a = 15 // 3
a = int(15 / 3)

a = 15 % 3
All of the mentioned
Correct answer
All of the mentioned

94. Only immutable data types can be used as keys for dictionaries in Python. True or
False?

True
False

95. What does 3 ^ 8 evaluate to?

81
24
11
5
Correct answer
11

96. What is the type of inf?

Boolean
Integer
Float
Complex

97. Which of the following can be used as a dictionary key?

list
set
dictionary
tuple
None of the above

98. Which of the following will run without errors?

round(45.8)
round(6352.898,2,5)
round()

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 round(7463.123,2,1)

Correct answer
round(45.8)

99. What is the return type of function id?

int
float
bool
dict
Correct answer
int

100. What does ~5 evaluate to?

-5
-7
-6
5

Correct answer
-6

101. Which of these in not a core data type?

Lists
Dictionary
Tuples
Class
Correct answer
Class

102. What is the output of the following code?

<class 'tuple'>
<class 'int'>
<class 'set'>
<class 'complex'>
<class 'list'>
Correct answer
<class 'list'>

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OBJECCTIVE TYPE QUESTIONS:
01. In which year was the Python language developed?
A. 1995
B. 1972
C. 1981
D. 1989
View Answer
Answer : D
Explanation: Python language was developed by Guido van Rossum in 1989 (late 1980s).

02. Who developed the Python language?

A. Zim Den
B. Guido van Rossum
C. Niene Stom
D. Wick van Rossum
View Answer
Answer : B
Explanation: Python language was developed by Guido van Rossum in the Netherlands in
the late 1980s.

03. How many keywords are there in python 3.7?

A. 32
B. 33
C. 31
D. 30
View Answer
Answer : B
Explanation: There are 33 keywords in Python 3.7. Keywords are reserved words of the
programming language that can not be used as variables and that have by default some
meaning in that language. So, Option B is correct.

04. Which one of the following is the correct extension of the Python file?
A. .py
B. .python
C. .p
D. None of these
View Answer
Answer : A
Explanation: “.py” is the extension of the python file.

05. What is output for − min(”hello world”)

A. e
B. a blank space character
C. w
D. hello world
View Answer

P SURESH BABU, PGT-COMPUTER SCIENCE Page 22 of 352

Answer : B
Explanation: python considers a blank space character as the minimum value in a string.

06. How to output the string “May the odds favor you” in Python?
A. print(“May the odds favor you”)
B. echo(“May the odds favor you”)
C. System.out(“May the odds favor you”)
D. printf(“May the odds favor you”)
View Answer
Answer : A
Explanation: print() function is used to display something to the user in python.

07. In which year was the Python 3.0 version developed?

A. 2005
B. 2000
C. 2010
D. 2008
View Answer
Answer : D
Explanation: Python 3.0 version was developed on December 3, 2008.

08. Which character is used in Python to make a single line comment?

A. /
B. //
C. #
D. ?
View Answer
Answer : C
Explanation: “#” character is used in the Python to make a single-line comment.

09. Python is often described as a:

A. Batteries excluded language
B. Gear included language
C. Batteries included language
D. Gear excluded language
View Answer
Answer : C
Explanation: Python programming language is often described as a “batteries included”
language due to its comprehensive standard library

10. What do we use to define a block of code in Python language?

A. Indentation
B. Key
C. Brackets
D. None of these
View Answer

P SURESH BABU, PGT-COMPUTER SCIENCE Page 23 of 352

Answer : A
Explanation: Python uses indentation to define blocks of code. Indentations are simply
spaces or tabs used as an indicator that is part of the indent code child as Curly braces are
used in the C programming language.

11. Mathematical operations can be performed on a string in Python? State whether

true or false:
A. False
B. True
View Answer
Answer : A
Explanation: We can’t perform mathematical operations on the string even if the string is in
the form: ‘1234…’.

12. . Which one of the following is not a python’s predefined data type?
A. List
B. Dictionary
C. Tuple
D. Class
View Answer
Answer : D
Explanation: Class is not a python’s predefined data type. But we can create classes on our
own.

13. . Which of the following has more precedence?

A. +
B. ()
C. /
D. –
View Answer
Answer : B
Explanation: () has more precedence in python programming language.

14. In which language is Python written?

A. English
B. PHP
C. C
D. All of the above
View Answer
Answer : C
Explanation: Python is written in the C programming language, and it is also called CPython.

15. Do we need to compile a program before execution in Python?

A. No
B. Yes
View Answer

P SURESH BABU, PGT-COMPUTER SCIENCE Page 24 of 352

Answer : A
Explanation: We don’t need to compile a program before execution in Python.

16. How to convert the uppercase letters in the string to lowercase in Python?
A. lowercase()
B. capilaize()
C. lower()
D. toLower()
View Answer
Answer : C
Explanation: lower() function is used to convert string into lower case in python.

17. How to capitalize only the first letter of a sentence in Python?

A. uppercase() method
B. capitalize() method
C. upper() method
D. None of the above
View Answer
Answer : B
Explanation: capitalize() method is used to capitalize only the first letter of a sentence in
Python.

18. How to convert the lowercase letters in the string to uppercase in Python?
A. uppercase()
B. toUpper()
C. capitalize()
D. upper()
View Answer
Answer : D
Explanation: upper() function is used to convert the lowercase letters in the string to
uppercase in Python.

19. How to check whether all the characters in a string is printable?

A. print() method
B. printable() method
C. isprintable() method
D. echo() method
View Answer
Answer : C
Explanation: isprintable() method.

20. How to swap case in Python i.e. lowercase to uppercase and vice versa?
A. casefold() method
B. case() method
C. convert() method
D. swapcase() method
View Answer

P SURESH BABU, PGT-COMPUTER SCIENCE Page 25 of 352

Answer : D
Explanation: swapcase().

P SURESH BABU, PGT-COMPUTER SCIENCE Page 26 of 352

01. In the Python statement x = a + 5 – b:
a and b are ________
a + 5 - b is ________
A. terms, a group
B. operators, a statement
C. operands, an expression
D. operands, an equation
View Answer
Answer : C
Explanation: The objects that operators act on are called operands. An expression involving
operators and operands is called an expression So, option C is correct.

02. Which is the correct operator for power(xy)?

A. X^y
B. X**y
C. X^^y
D. None of the mentioned
View Answer
Answer : B
Explanation: In python, power operator is x**y i.e. 2**5=32.

03. What is the output of the following addition (+) operator

a = [10, 20]
b=a
b += [30, 40]
print(a)
print(b)
A. [10, 20, 30, 40]
[10, 20, 30, 40]
B. [10, 20]
[10, 20, 30, 40]
C. [10, 20, 10, 20]
[10, 20, 30, 40]
D. [10, 20]
[30, 40]
View Answer
Answer : A
Explanation: Because since b and a reference to the same object, when we use the addition
assignment operator += on b, it changes both a and b.

04. Which function overloads the >> operator?

A. more()
B. gt()
C. ge()
P SURESH BABU, PGT-COMPUTER SCIENCE Page 27 of 352
D. None of the above
View Answer
Answer : D
Explanation: rshift() function overloads the >> operator

05. What is the value of the expression 100 / 25?

A. 4
B. 4.0
C. 0
D. 25
View Answer
Answer : B
Explanation: The result of standard division is always float. The value of 100 // 25 (integer
division) is 4.

06. Which one of these is floor division?

A. //
B. /
C. %
D. None of the above
View Answer
Answer : A
Explanation: When both of the operands are integer then python chops out the fraction part
and gives you the round-off value, to get the accurate answer use, floor division. This is floor
division. For ex, 5/2 = 2.5 but both of the operands are integers so the answer of this
expression in Python is 2. To get the 2.5 as an answer, use floor division.

07. What is the output of the following assignment operator

a = 10
b = a -= 2
print(b)
A. 8
B. 10
C. Syntax Error
D. No error but no output too
View Answer
Answer : C
Explanation: b = a -= 2 expression is Invalid

08. Which operator is overloaded by the or() function?

A. ||
B. |
C. //
D. /
View Answer

P SURESH BABU, PGT-COMPUTER SCIENCE Page 28 of 352

Answer : B
Explanation: or() function overloads the bitwise OR operator “|”.

09. Should you use the == operator to determine whether objects of type float are
equal?
A. Nope, not a good idea.
B. Sure! Go for it.
View Answer
Answer : A
Explanation: Internal representation of float objects is not precise, so they can’t be relied on
to equal exactly what you think they will:
>>> 1.1 + 2.2 == 3.3
False

You should instead compute whether the numbers are close enough to one another to satisfy
a specified tolerance:
>>> tolerance = 0.00001
>>> abs((1.1 + 2.2) – 3.3) < tolerance
True

10. What is the order of precedence in python?

i) Parentheses
ii) Exponential
iii) Multiplication
iv) Division
v) Addition
vi) Subtraction
A. ii,i,iii,iv,v,vi
B. ii,i,iv,iii,v,vi
C. i,ii,iii,iv,vi,v
D. i,ii,iii,iv,v,vi
View Answer
Answer : D
Explanation: For order of precedence, just remember this PEMDAS-Parentheses>
Exponential> Multiplication> Division> Addition> Subtraction (similar to BODMAS).

11. What is the output of the following code

x=6
y=2
print(x ** y)
print(x // y)
A. 66
0
B. 36
0

P SURESH BABU, PGT-COMPUTER SCIENCE Page 29 of 352

 C. 66
3
D. 36
3
View Answer
Answer : D
Explanation: The Exponent (**) operator performs exponential (power) calculation. so here
6 ** 2 means 6*6 = 36 The // is the Floor Division operator so 6//2=3

12. What is the output of the following program :

i=0
while i < 3:
print i
i++
print i+1
A. 0 2 1 3 2 4
B. 0 1 2 3 4 5
C. Error
D. 1 0 2 4 3 5
View Answer
Answer : C
Explanation: Python Programming language does not support ‘++’ operator.

13. Suppose the following statements are executed:

a = 100
b = 200
What is the value of the expression a and b?
A. True
B. 0
C. False
D. 200
E. 100
View Answer
Answer : D
Explanation: None

14. Operators with the same precedence are evaluated in which manner?
A. Left to Right
B. Right to Left
C. Can’t say
D. None of the mentioned
View Answer
Answer : A
Explanation: None

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15. Which of the following operators has the highest precedence?
A. not
B. &
C. *
D. +
View Answer
Answer : C
Explanation: None

16. Given a function that does not return any value, what value is shown when executed
at the shell?
A. int
B. bool
C. void
D. None
View Answer
Answer : D
Explanation: Python explicitly defines the None object that is returned if no value is
specified.

17. The function sqrt() from the math module computes the square root of a number.
Will the highlighted line of code raise an exception?
x = -100
from math import sqrt
x > 0 and sqrt(x)
A. Yes
B. No
C. void
D. None
View Answer
Answer : B
Explanation: In the highlighted line, x > 0 is False. The expression is already known to be
falsy at that point. Due to short-circuit evaluation, sqrt(x) (which would raise an exception) is
not evaluated.

18. Which one of the following has the same precedence level?
A. Addition and Subtraction
B. Multiplication, Division and Addition
C. Multiplication, Division, Addition and Subtraction
D. Addition and Multiplication
View Answer
Answer : A
Explanation: “Addition and Subtraction” are at the same precedence level. Similarly,
“Multiplication and Division” are at the same precedence level. However, Multiplication and
Division operators are at a higher precedence level than Addition and Subtraction operators.

P SURESH BABU, PGT-COMPUTER SCIENCE Page 31 of 352

19. What is the output of the following code

print(bool(0), bool(3.14159), bool(-3), bool(1.0+1j))

A. True True False True
B. False True True True
C. True True False True
D. False True False True
View Answer
Answer : B
Explanation: If we pass A zero value to the bool() constructor, it will treat it as false. Any
non-zero value is true.

20. What is the output of the expression print(-18 // 4)

A. -4
B. -5
C. 4
D. 5
View Answer
Answer : B
Explanation: In the case of the floor division operator(//), when the result is negative, the
result is rounded down to the next smallest (big negative) integer.

P SURESH BABU, PGT-COMPUTER SCIENCE Page 32 of 352

01. Which of the following statements assigns the value 25 to the variable x in Python:
A. x ← 25
B. x = 25
C. x := 25
D. int x = 25
E. x << 25
View Answer
Answer : B

02. In Python, a variable may be assigned a value of one type, and then later assigned a
value of a different type:
A. False
B. True
View Answer
Answer : B
Explanation: Variables are not statically typed in Python, as they are in some other
programming languages.

03. Which one of the following is the correct way of declaring and initializing a
variable, x with the value 7?
A. int x
x=7
B. int x=7
C. x=7
D. declare x=7
View Answer
Answer : C
Explanation: The correct way of declaring and initializing a variable, x with the value 7 is
x=7.

04. What will be the output of statement 2**2**2**2

A. 16
B. 256
C. 32768
D. 65536
View Answer
Answer : D
Explanation: The statement is equivalent to 2^16. So, Option D is correct.

05. Which of the following statement is False?

A. Variable names can be arbitrarily long.
B. They can contain both letters and numbers.
C. Variable name can begin with underscore.
D. Variable name can begin with number.
View Answer

P SURESH BABU, PGT-COMPUTER SCIENCE Page 33 of 352

Answer : D
Explanation: Variable name can not begin with the number, it can only begin with a letter or
underscore.

06. What is the output of the following code: print 9//2

A. 4
B. 4.5
C. 4.0
D. Error
View Answer
Answer : A
Explanation: Floor Division operator “//” – The division of operands where the result is the
quotient in which the digits after the decimal point are removed. So in this case we get 4 as
the answer. So, Option A is correct.

07. Which of the following is not a valid variable name in Python?

A. _var
B. var_name
C. var11
D. 5var
View Answer
Answer : D
Explanation: 5var is not a valid variable name in python.

08. What is the maximum length of an identifier in python?

A. 32
B. 31
C. 63
D. None of the above
View Answer
Answer : D
Explanation: In python, the Identifier can be of any length. So, Option D is correct.

09. Which of the following declarations is incorrect?

A. None Of the below
B. _x = 2
C. __x = 3
D. __xyz__ = 5
View Answer
Answer : A
Explanation: All declarations will execute successfully but at the expense of low readability.

10. What is the result of round(0.5) – round(-0.5)?

A. 1.0
B. 2.0
C. 0
D. None Of the above

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View Answer
Answer : B
Explanation: Python rounds off numbers away from 0 when the number to be rounded off is
exactly halfway through. round(0.5) is 1 and round (-0.5) is -1 So, 1-(-1)=2.0

11. In Python, a variable must be declared before it is assigned a value:

A. True
B. False
View Answer
Answer : B
Explanation: Variables need not be declared or defined in advance in Python programming.
To create a variable, you just assign it a value.

12. Why does the name of local variables start with an underscore discouraged?
A. To identify the variable
B. It confuses the interpreter
C. It indicates a private variable of a class
D. None of these
View Answer
Answer : C
Explanation: Since there is no concept of private variables in Python language, majorly
underscore is used to denote variables that cannot be accessed from outside the class.

13. Which of the following will run without errors?

A. round(75.8)
B. round()
C. round(5352.898,9,5)
D. round(6463.123,2,6)
View Answer
Answer : A
Explanation: Execute help(round) in the shell to get details of the parameters that are passed
into the round function.

14. Which of the following is a valid variable?

A. var@
B. 32var
C. in
D. abc_x
View Answer
Answer : D
Explanation: Variable name should not be a keyword, cannot begin with a digit, and should
not contain any special symbol. Hence D is the correct identifier or variable. So, Option D is
correct.

15. Is Python case sensitive when dealing with identifiers?

A. Yes
B. No

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C. Machine dependent
D. None of the above
View Answer
Answer : A
Explanation: Case is always significant.

16. In which data type, indexing is not valid?

A. List
B. String
C. Dictionary
D. None of the above
View Answer
Answer : C
Explanation: Indexing is not valid in dictionary.

17. Select the correct example of complex datatype in Python

A. 3 + 2j
B. -100j
C. 5j
D. All of the above are correct
View Answer
Answer : D
Explanation: All of the above are complex data types in python

18. What is output of: 35 == 35.0

A. False
B. True
C. 33
D. None of the above
View Answer
Answer : B
Explanation: comparison operator (==) evaluates true and false. And in python, we need not
specify whether the number is int or float.

19. l = [ 4, 8, 9, 2.6, 5 ] is a type of which data type in python?

A. List
B. Tuple
C. Set
D. None of these
View Answer
Answer : A
Explanation: List in python is created by writing values inside [].

20. How can we create an empty list in python?

A. list=()
B. list.null
C. null.list

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 D. list=[]
View Answer
Answer : D
Explanation: List in python is created by writing values inside []. So, for creating an empty
list just leave the list as [].

21. If x=3.123, then int(x) will give ?

A. 3.1
B. 0
C. 1
D. 3
View Answer
Answer : D
Explanation: int() will convert the float value into integer value.

22. Which of the following is the example of typecasting?

A. int(5)
B. str(5)
C. str(xyz)
D. All of the above
View Answer
Answer : D
Explanation: All

23. What is type casting in python?

A. Declaration of data type
B. Destroy data type
C. Change data type property
D. None of the above
View Answer
Answer : C
Explanation: Type casting means changing the property of data types.

24. In Python 3, the maximum value for an integer is 2 63 – 1:

A. True
B. Flase
View Answer
Answer : B
Explanation: In Python 2, there was an internal limit to how large an integer value could be.
But that limit was removed in Python 3.
This means there is no explicitly defined limit, but the amount of available address space
forms a practical limit depending on the machine Python runs on.

25. Which of the following is not a data type in python?

A. List
B. Tuple
C. Dictionary

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D. Book
View Answer
Answer : D
Explanation: Book is not a data type

26. Which of the following is a valid way to specify the string literal foo'bar in Python:
A. “foo’bar”
B. ‘foo”bar’
C. ‘foo’bar’
D. None of the above
View Answer
Answer : A

27. Correct way to declare a variable x of float data type in python:

A. x = 2.5
B. float x = 2.5
C. float(2.5)
D. All of the above
View Answer
Answer : A
Explanation: We just write the variable name and can assign any type of value and then the
type of variable will change according to the value we assign in it.

28. All keywords in Python are in ____

A. None of the below
B. lower case
C. UPPER CASE
D. Capitalized
View Answer
Answer : A
Explanation: True, False, and None are capitalized while the others are in lower case.

29. Which of the following is true for variable names in Python?

A. Underscore and ampersand are the only two special characters allowed
B. All private members must have leading and trailing underscores
C. Unlimited length
D. none of the mentioned
View Answer
Answer : C
Explanation: Variable names can be of any length.

30. What does ~4 evaluate to?

A. -4
B. -5
C. -3
D. +3
View Answer

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Answer : B
Explanation: ~x is equivalent to -(x+1).

31. In order to store values in terms of key and value we use that core data type in
python?
A. List
B. Class
C. Dictionary
D. Tupple
View Answer
Answer : C
Explanation: Dictionary is the collection of keys and their value.

32. How can we get 6 from the given list: list=[9,5,6,3]

A. list[-2]
B. list[-1]
C. list[3]
D. None of the above
View Answer
Answer : A
Explanation: list[-2] will give the second last element of the list.

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 Questions and Answers – Variable Names

1. Is Python case sensitive when dealing with identifiers?

a) yes
b) no
c) machine dependent
d) none of the mentioned

Answer: a
Explanation: Case is always significant.

2. What is the maximum possible length of an identifier?

a) 31 characters
b) 63 characters
c) 79 characters
d) none of the mentioned

Answer: d
Explanation: Identifiers can be of any length.

3. Which of the following is invalid?

a) _a = 1
b) __a = 1
c) __str__ = 1
d) none of the mentioned

Answer: d
Explanation: All the statements will execute successfully but at the cost of reduced
readability.

4. Which of the following is an invalid variable?

a) my_string_1
b) 1st_string
c) foo
d) _

Answer: b
Explanation: Variable names should not start with a number.

5. Why are local variable names beginning with an underscore discouraged?

a) they are used to indicate a private variables of a class
b) they confuse the interpreter
c) they are used to indicate global variables
d) they slow down execution

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Answer: a
Explanation: As Python has no concept of private variables, leading underscores are
used to indicate variables that must not be accessed from outside the class.

6. Which of the following is not a keyword?

a) eval
b) assert
c) nonlocal
d) pass

Answer: a
Explanation: eval can be used as a variable.

7. All keywords in Python are in _________

a) lower case
b) UPPER CASE
c) Capitalized
d) None of the mentioned

Answer: d
Explanation: True, False and None are capitalized while the others are in lower case.

8. Which of the following is true for variable names in Python?

a) unlimited length
b) all private members must have leading and trailing underscores
c) underscore and ampersand are the only two special characters allowed
d) none of the mentioned

Answer: a
Explanation: Variable names can be of any length.

9. Which of the following is an invalid statement?

a) abc = 1,000,000
b) a b c = 1000 2000 3000
c) a,b,c = 1000, 2000, 3000
d) a_b_c = 1,000,000

Answer: b
Explanation: Spaces are not allowed in variable names.

10. Which of the following cannot be a variable?

a) __init__
b) in
c) it
d) on

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Answer: b
Explanation: in is a keyword.

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 Python Questions and Answers – Basic Operators

1. Which is the correct operator for power(xy)?

a) X^y
b) X**y
c) X^^y
d) None of the mentioned

Answer: b
Explanation: In python, power operator is x**y i.e. 2**3=8.

2. Which one of these is floor division?

a) /
b) //
c) %
d) None of the mentioned

Answer: b
Explanation: When both of the operands are integer then python chops out the
fraction part and gives you the round off value, to get the accurate answer use floor
division. This is floor division. For ex, 5/2 = 2.5 but both of the operands are integer so
answer of this expression in python is 2. To get the 2.5 answer, use floor division.

3. What is the order of precedence in python?

i) Parentheses
ii) Exponential
iii) Multiplication
iv) Division
v) Addition
vi) Subtraction
a) i,ii,iii,iv,v,vi
b) ii,i,iii,iv,v,vi
c) ii,i,iv,iii,v,vi
d) i,ii,iii,iv,vi,v

Answer: a
Explanation: For order of precedence, just remember this PEMDAS (similar to
BODMAS).

4. What is the answer to this expression, 22 % 3 is?

a) 7
b) 1
c) 0
d) 5

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Answer: b
Explanation: Modulus operator gives the remainder. So, 22%3 gives the remainder,
that is, 1.

5. Mathematical operations can be performed on a string.

a) True
b) False

Answer: b
Explanation: You can’t perform mathematical operation on string even if the string is
in the form: ‘1234…’.

6. Operators with the same precedence are evaluated in which manner?

a) Left to Right
b) Right to Left
c) Can’t say
d) None of the mentioned

Answer: a
Explanation: None.

7. What is the output of this expression, 3*1**3?

a) 27
b) 9
c) 3
d) 1

Answer: c
Explanation: First this expression will solve 1**3 because exponential has higher
precedence than multiplication, so 1**3 = 1 and 3*1 = 3. Final answer is 3.

8. Which one of the following has the same precedence level?

a) Addition and Subtraction
b) Multiplication, Division and Addition
c) Multiplication, Division, Addition and Subtraction
d) Addition and Multiplication

Answer: a
Explanation: “Addition and Subtraction” are at the same precedence level. Similarly,
“Multiplication and Division” are at the same precedence level. However,
Multiplication and Division operators are at a higher precedence level than Addition
and Subtraction operators.

9. The expression Int(x) implies that the variable x is converted to integer.

a) True
b) False

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Answer: a
Explanation: None.

10. Which one of the following has the highest precedence in the expression?
a) Exponential
b) Addition
c) Multiplication
d) Parentheses

Answer: d
Explanation: Just remember: PEMDAS, that is, Parenthesis, Exponentiation,
Division, Multiplication, Addition, Subtraction. Note that the precedence order of
Division and Multiplication is the same. Likewise, the order of Addition and
Subtraction is also the same.

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 Python Questions and Answers – Core Data types

1. Which of these in not a core data type?

a) Lists
b) Dictionary
c) Tuples
d) Class

Answer: d
Explanation: Class is a user defined data type.

2. Given a function that does not return any value, What value is thrown by default when
executed in shell.
a) int
b) bool
c) void
d) None

Answer: d
Explanation: Python shell throws a NoneType object back.

3. What will be the output of the following Python code?

1. >>>str="hello"
2. >>>str[:2]
3. >>>
a) he
b) lo
c) olleh
d) hello

Answer: a
Explanation: We are printing only the 1st two bytes of string and hence the answer is
“he”.

4. Which of the following will run without errors?

a) round(45.8)
b) round(6352.898,2,5)
c) round()
d) round(7463.123,2,1)

Answer: a
Explanation: Execute help(round) in the shell to get details of the parameters that are
passed into the round function.

5. What is the return type of function id?

a) int
b) float

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c) bool
d) dict

Answer: a
Explanation: Execute help(id) to find out details in python shell.id returns a integer
value that is unique.

6. In python we do not specify types, it is directly interpreted by the compiler, so consider

the following operation to be performed.
1. >>>x = 13 ? 2
objective is to make sure x has a integer value, select all that apply (python 3.xx)
a) x = 13 // 2
b) x = int(13 / 2)
c) x = 13 % 2
d) All of the mentioned

Answer: d
Explanation: // is integer operation in python 3.0 and int(..) is a type cast operator.

7. What error occurs when you execute the following Python code snippet?
apple = mango
a) SyntaxError
b) NameError
c) ValueError
d) TypeError

Answer: b
Explanation: Mango is not defined hence name error.

8. What will be the output of the following Python code snippet?

1. def example(a):
2. a = a + '2'
3. a = a*2
4. return a
5. >>>example("hello")
a) indentation Error
b) cannot perform mathematical operation on strings
c) hello2
d) hello2hello2

Answer: a
Explanation: Python codes have to be indented properly.

9. What data type is the object below?

L = [1, 23, 'hello', 1]
a) list
b) dictionary

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c) array
d) tuple

Answer: a
Explanation: List data type can store any values within it.

10. In order to store values in terms of key and value we use what core data type.
a) list
b) tuple
c) class
d) dictionary

Answer: d
Explanation: Dictionary stores values in terms of keys and values.

11. Which of the following results in a SyntaxError?

a) ‘”Once upon a time…”, she said.’
b) “He said, ‘Yes!'”
c) ‘3\’
d) ”’That’s okay”’

Answer: c
Explanation: Carefully look at the colons.

12. The following is displayed by a print function call. Select all of the function calls that
result in this output.
1. tom
2. dick
3. harry
a)
print('''tom
\ndick
\nharry''')
b) print(”’tomdickharry”’)
c) print(‘tom\ndick\nharry’)
d)
print('tom
dick
harry')

Answer: c
Explanation: The \n adds a new line.

13. What is the average value of the following Python code snippet?
1. >>>grade1 = 80
2. >>>grade2 = 90
3. >>>average = (grade1 + grade2) / 2

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a) 85.0
b) 85.1
c) 95.0
d) 95.1

Answer: a
Explanation: Cause a decimal value of 0 to appear as output.

14. Select all options that print.

hello-how-are-you
a) print(‘hello’, ‘how’, ‘are’, ‘you’)
b) print(‘hello’, ‘how’, ‘are’, ‘you’ + ‘-‘ * 4)
c) print(‘hello-‘ + ‘how-are-you’)
d) print(‘hello’ + ‘-‘ + ‘how’ + ‘-‘ + ‘are’ + ‘you’)

Answer: c
Explanation: Execute in the shell.

15. What is the return value of trunc()?

a) int
b) bool
c) float
d) None

Answer: a
Explanation: Execute help(math.trunc) to get details.

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 Python Questions and Answers – Numeric Types

1. What is the output of print 0.1 + 0.2 == 0.3?

a) True
b) False
c) Machine dependent
d) Error

Answer: b
Explanation: Neither of 0.1, 0.2 and 0.3 can be represented accurately in binary. The
round off errors from 0.1 and 0.2 accumulate and hence there is a difference of
5.5511e-17 between (0.1 + 0.2) and 0.3.

2. Which of the following is not a complex number?

a) k = 2 + 3j
b) k = complex(2, 3)
c) k = 2 + 3l
d) k = 2 + 3J

Answer: c
Explanation: l (or L) stands for long.

3. What is the type of inf?

a) Boolean
b) Integer
c) Float
d) Complex

Answer: c
Explanation: Infinity is a special case of floating point numbers. It can be obtained by
float(‘inf’).

4. What does ~4 evaluate to?

a) -5
b) -4
c) -3
d) +3

Answer: a
Explanation: ~x is equivalent to -(x+1).

5. What does ~~~~~~5 evaluate to?

a) +5
b) -11
c) +11
d) -5

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Answer: a
Explanation: ~x is equivalent to -(x+1).

6. Which of the following is incorrect?

a) x = 0b101
b) x = 0x4f5
c) x = 19023
d) x = 03964

Answer: d
Explanation: Numbers starting with a 0 are octal numbers but 9 isn’t allowed in octal
numbers.

7. What is the result of cmp(3, 1)?

a) 1
b) 0
c) True
d) False

Answer: a
Explanation: cmp(x, y) returns 1 if x > y, 0 if x == y and -1 if x < y.

8. Which of the following is incorrect?

a) float(‘inf’)
b) float(‘nan’)
c) float(’56’+’78’)
d) float(’12+34′)

Answer: d
Explanation: ‘+’ cannot be converted to a float.

9. What is the result of round(0.5) – round(-0.5)?

a) 1.0
b) 2.0
c) 0.0
d) Value depends on Python version

Answer: d
Explanation: The behavior of the round() function is different in Python 2 and Python
3. In Python 2, it rounds off numbers away from 0 when the number to be rounded off
is exactly halfway through. round(0.5) is 1 and round(-0.5) is -1 whereas in Python 3,
it rounds off numbers towards nearest even number when the number to be rounded
off is exactly halfway through. See the below output.
Here’s the runtime output for Python version 2.7 interpreter.
$ python
Python 2.7.17 (default, Nov 7 2019, 10:07:09)
>>> round(0.5)

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1.0
>>> round(-0.5)
-1.0
>>>
In the above output, you can see that the round() functions on 0.5 and -0.5 are moving
away from 0 and hence “round(0.5) – (round(-0.5)) = 1 – (-1) = 2”
Here’s the runtime output for Python version 3.6 interpreter.
$ python3
Python 3.6.8 (default, Oct 7 2019, 12:59:55)
>>> round(0.5)
0
>>> round(-0.5)
0
>>> round(2.5)
2
>>> round(3.5)
4
>>>
In the above output, you can see that the round() functions on 0.5 and -0.5 are moving
towards 0 and hence “round(0.5) – (round(-0.5)) = 0 – 0 = 0“. Also note that the
round(2.5) is 2 (which is an even number) whereas round(3.5) is 4 (which is an even
number).

10. What does 3 ^ 4 evaluate to?

a) 81
b) 12
c) 0.75
d) 7

Answer: d
Explanation: ^ is the Binary XOR operator.

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 Python Questions and Answers – Operator Precedence and Associativity – 1

1. The value of the expressions 4/(3*(2-1)) and 4/3*(2-1) is the same.

a) True
b) False

Answer: a
Explanation: Although the presence of parenthesis does affect the order of
precedence, in the case shown above, it is not making a difference. The result of both
of these expressions is 1.333333333. Hence the statement is true.

2. What will be the value of the following Python expression?

4+3%5
a) 4
b) 7
c) 2
d) 0

Answer: b
Explanation: The order of precedence is: %, +. Hence the expression above, on
simplification results in 4 + 3 = 7. Hence the result is 7.

3. Evaluate the expression given below if A = 16 and B = 15.

A % B // A
a) 0.0
b) 0
c) 1.0
d) 1

Answer: b
Explanation: The above expression is evaluated as: 16%15//16, which is equal to 1//16,
which results in 0.

4. Which of the following operators has its associativity from right to left?
a) +
b) //
c) %
d) **

Answer: d
Explanation: All of the operators shown above have associativity from left to right,
except exponentiation operator (**) which has its associativity from right to left.

5. What will be the value of x in the following Python expression?

x = int(43.55+2/2)
a) 43
b) 44

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c) 22
d) 23

Answer: b
Explanation: The expression shown above is an example of explicit conversion. It is
evaluated as int(43.55+1) = int(44.55) = 44. Hence the result of this expression is 44.

6. What is the value of the following expression?

2+4.00, 2**4.0
a) (6.0, 16.0)
b) (6.00, 16.00)
c) (6, 16)
d) (6.00, 16.0)

Answer: a
Explanation: The result of the expression shown above is (6.0, 16.0). This is because
the result is automatically rounded off to one decimal place.

7. Which of the following is the truncation division operator?

a) /
b) %
c) //
d) |

Answer: c
Explanation: // is the operator for truncation division. It is called so because it returns
only the integer part of the quotient, truncating the decimal part. For example: 20//3 =
6.

8. What are the values of the following Python expressions?

2**(3**2)
(2**3)**2
2**3**2
a) 64, 512, 64
b) 64, 64, 64
c) 512, 512, 512
d) 512, 64, 512

Answer: d
Explanation: Expression 1 is evaluated as: 2**9, which is equal to 512. Expression 2 is
evaluated as 8**2, which is equal to 64. The last expression is evaluated as 2**(3**2).
This is because the associativity of ** operator is from right to left. Hence the result of
the third expression is 512.

9. What is the value of the following expression?

8/4/2, 8/(4/2)

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a) (1.0, 4.0)
b) (1.0, 1.0)
c) (4.0. 1.0)
d) (4.0, 4.0)

Answer: a
Explanation: The above expressions are evaluated as: 2/2, 8/2, which is equal to (1.0,
4.0).

10. What is the value of the following expression?

float(22//3+3/3)
a) 8
b) 8.0
c) 8.3
d) 8.33

Answer: b
Explanation: The expression shown above is evaluated as: float( 7+1) = float(8) = 8.0.
Hence the result of this expression is 8.0.

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 Python Questions and Answers – Precedence and Associativity – 2

1. What will be the output of the following Python expression?

print(4.00/(2.0+2.0))
a) Error
b) 1.0
c) 1.00
d) 1

Answer: b
Explanation: The result of the expression shown above is 1.0 because print rounds off
digits.

2. What will be the value of X in the following Python expression?

X = 2+9*((3*12)-8)/10
a) 30.0
b) 30.8
c) 28.4
d) 27.2

Answer: d
Explanation: The expression shown above is evaluated as: 2+9*(36-8)/10, which
simplifies to give 2+9*(2.8), which is equal to 2+25.2 = 27.2. Hence the result of this
expression is 27.2.

3. Which of the following expressions involves coercion when evaluated in Python?

a) 4.7 – 1.5
b) 7.9 * 6.3
c) 1.7 % 2
d) 3.4 + 4.6

Answer: c
Explanation: Coercion is the implicit (automatic) conversion of operands to a common
type. Coercion is automatically performed on mixed-type expressions. The expression
1.7 % 2 is evaluated as 1.7 % 2.0 (that is, automatic conversion of int to float).

4. What will be the output of the following Python expression?

24//6%3, 24//4//2
a) (1,3)
b) (0,3)
c) (1,0)
d) (3,1)

Answer: a
Explanation: The expressions are evaluated as: 4%3 and 6//2 respectively. This results
in the answer (1,3). This is because the associativity of both of the expressions shown
above is left to right.

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5. Which among the following list of operators has the highest precedence?
+, -, **, %, /, <<, >>, |
a) <<, >>
b) **
c) |
d) %

Answer: b
Explanation: The highest precedence is that of the exponentiation operator, that is of
**.

6. What will be the value of the following Python expression?

float(4+int(2.39)%2)
a) 5.0
b) 5
c) 4.0
d) 4

Answer: c
Explanation: The above expression is an example of explicit conversion. It is evaluated
as: float(4+int(2.39)%2) = float(4+2%2) = float(4+0) = 4.0. Hence the result of this
expression is 4.0.

7. Which of the following expressions is an example of type conversion?

a) 4.0 + float(3)
b) 5.3 + 6.3
c) 5.0 + 3
d) 3 + 7

Answer: a
Explanation: Type conversion is nothing but explicit conversion of operands to a
specific type. Options 5.3 + 6.3 and 5.0 + 3 are examples of implicit conversion
whereas option 4.0 + float(3) is an example of explicit conversion or type conversion.

8. Which of the following expressions results in an error?

a) float(‘10’)
b) int(‘10’)
c) float(’10.8’)
d) int(’10.8’)

Answer: d
Explanation: All of the above examples show explicit conversion. However the
expression int(’10.8’) results in an error.

9. What will be the value of the following Python expression?

4+2**5//10

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a) 3
b) 7
c) 77
d) 0

Answer: b
Explanation: The order of precedence is: **, //, +. The expression 4+2**5//10 is
evaluated as 4+32//10, which is equal to 4+3 = 7. Hence the result of the expression
shown above is 7.

10. The expression 2**2**3 is evaluates as: (2**2)**3.

a) True
b) False

Answer: b
Explanation: The value of the expression (2**2)**3 = 4**3 = 64. When the expression
2**2**3 is evaluated in python, we get the result as 256, because this expression is
evaluated as 2**(2**3). This is because the associativity of exponentiation operator
(**) is from right to left and not from left to right.

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 Python Questions and Answers – Bitwise – 1

1. What will be the output of the following Python code snippet if x=1?
x<<2
a) 8
b) 1
c) 2
d) 4

Answer: d
Explanation: The binary form of 1 is 0001. The expression x<<2 implies we are
performing bitwise left shift on x. This shift yields the value: 0100, which is the binary
form of the number 4.

2. What will be the output of the following Python expression?

bin(29)
a) ‘0b10111’
b) ‘0b11101’
c) ‘0b11111’
d) ‘0b11011’

Answer: b
Explanation: The binary form of the number 29 is 11101. Hence the output of this
expression is ‘0b11101’.

3. What will be the value of x in the following Python expression, if the result of that
expression is 2?
x>>2
a) 8
b) 4
c) 2
d) 1

Answer: a
Explanation: When the value of x is equal to 8 (1000), then x>>2 (bitwise right shift)
yields the value 0010, which is equal to 2. Hence the value of x is 8.

4. What will be the output of the following Python expression?

int(1011)?
a) 1011
b) 11
c) 13
d) 1101

Answer: a
Explanation: The result of the expression shown will be 1011. This is because we have
not specified the base in this expression. Hence it automatically takes the base as 10.

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5. To find the decimal value of 1111, that is 15, we can use the function:
a) int(1111,10)
b) int(‘1111’,10)
c) int(1111,2)
d) int(‘1111’,2)

Answer: d
Explanation: The expression int(‘1111’,2) gives the result 15. The expression
int(‘1111’, 10) will give the result 1111.

6. What will be the output of the following Python expression if x=15 and y=12?
x&y
a) b1101
b) 0b1101
c) 12
d) 1101

Answer: c
Explanation: The symbol ‘&’ represents bitwise AND. This gives 1 if both the bits are
equal to 1, else it gives 0. The binary form of 15 is 1111 and that of 12 is 1100. Hence
on performing the bitwise AND operation, we get 1100, which is equal to 12.

7. Which of the following expressions results in an error?

a) int(1011)
b) int(‘1011’,23)
c) int(1011,2)
d) int(‘1011’)

Answer: c
Explanation: The expression int(1011,2) results in an error. Had we written this
expression as int(‘1011’,2), then there would not be an error.

8. Which of the following represents the bitwise XOR operator?

a) &
b) ^
c) |
d) !

Answer: b
Explanation: The ^ operator represent bitwise XOR operation. &: bitwise AND, | :
bitwise OR and ! represents bitwise NOT.

9. What is the value of the following Python expression?

bin(0x8)
a) ‘0bx1000’
b) 8

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c) 1000
d) ‘0b1000’

Answer: d
Explanation: The prefix 0x specifies that the value is hexadecimal in nature. When we
convert this hexadecimal value to binary form, we get the result as: ‘0b1000’.

10. What will be the output of the following Python expression?

0x35 | 0x75
a) 115
b) 116
c) 117
d) 118

Answer: c
Explanation: The binary value of 0x35 is 110101 and that of 0x75 is 1110101. On OR-
ing these two values we get the output as: 1110101, which is equal to 117. Hence the
result of the above expression is 117.

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 Python Questions and Answers – Bitwise – 2

1. It is not possible for the two’s complement value to be equal to the original value in any
case.
a) True
b) False

Answer: b
Explanation: In most cases the value of two’s complement is different from the
original value. However, there are cases in which the two’s complement value may be
equal to the original value. For example, the two’s complement of 10000000 is also
equal to 10000000. Hence the statement is false.

2. The one’s complement of 110010101 is:

a) 001101010
b) 110010101
c) 001101011
d) 110010100

Answer: a
Explanation: The one’s complement of a value is obtained by simply changing all the
1’s to 0’s and all the 0’s to 1’s. Hence the one’s complement of 110010101 is
001101010.

3. Bitwise _________ gives 1 if either of the bits is 1 and 0 when both of the bits are 1.
a) OR
b) AND
c) XOR
d) NOT

Answer: c
Explanation: Bitwise XOR gives 1 if either of the bits is 1 and 0 when both of the bits
are 1.

4. What will be the output of the following Python expression?

4^12
a) 2
b) 4
c) 8
d) 12

Answer: c
Explanation: ^ is the XOR operator. The binary form of 4 is 0100 and that of 12 is
1100. Therefore, 0100^1100 is 1000, which is equal to 8.

5. Any odd number on being AND-ed with ________ always gives 1. Hint: Any even
number on being AND-ed with this value always gives 0.

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a) 10
b) 2
c) 1
d) 0

Answer: c
Explanation: Any odd number on being AND-ed with 1 always gives 1. Any even
number on being AND-ed with this value always gives 0.

6. What will be the value of the following Python expression?

bin(10-2)+bin(12^4)
a) 0b10000
b) 0b10001000
c) 0b1000b1000
d) 0b10000b1000

Answer: d
Explanation: The output of bin(10-2) = 0b1000 and that of bin(12^4) is ob1000. Hence
the output of the above expression is: 0b10000b1000.

7. Which of the following expressions can be used to multiply a given number ‘a’ by 4?
a) a<<2
b) a<<4
c) a>>2
d) a>>4

Answer: a
Explanation: Let us consider an example wherein a=2. The binary form of 2 is 0010.
When we left shift this value by 2, we get 1000, the value of which is 8. Hence if we
want to multiply a given number ‘a’ by 4, we can use the expression: a<<2.

8. What will be the output of the following Python code if a=10 and b =20?
a=10
b=20
a=a^b
b=a^b
a=a^b
print(a,b)
a) 10 20
b) 10 10
c) 20 10
d) 20 20

Answer: c
Explanation: The code shown above is used to swap the contents of two memory
locations using bitwise X0R operator. Hence the output of the code shown above is: 20
10.

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9. What is the two’s complement of -44?
a) 1011011
b) 11010100
c) 11101011
d) 10110011

Answer: b
Explanation: The binary form of -44 is 00101100. The one’s complement of this value
is 11010011. On adding one to this we get: 11010100 (two’s complement).

10. What will be the output of the following Python expression?

~100?
a) 101
b) -101
c) 100
d) -100

Answer: b
Explanation: Suppose we have an expression ~A. This is evaluated as: -A – 1.
Therefore, the expression ~100 is evaluated as -100 – 1, which is equal to -101.

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 Python Questions and Answers – Boolean

1. What will be the output of the following Python code snippet?

bool(‘False’)
bool()
a)
True
True
b)
False
True
c)
False
False
d)
True
False

Answer: d
Explanation: The Boolean function returns true if the argument passed to the bool
function does not amount to zero. In the first example, the string ‘False’ is passed to
the function bool. This does not amount to zero and hence the output is true. In the
second function, an empty list is passed to the function bool. Hence the output is false.

2. What will be the output of the following Python code snippet?

['hello', 'morning'][bool('')]
a) error
b) no output
c) hello
d) morning

Answer: c
Explanation: The line of code shown above can be simplified to state that ‘hello’
should be printed if the argument passed to the Boolean function amounts to zero, else
‘morning’ will be printed.

3. What will be the output of the following Python code snippet?

not(3>4)
not(1&1)
a)
True
True
b)
True
False
c)
False

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 True
d)
False
False

Answer: b
Explanation: The function not returns true if the argument amounts to false, and false
if the argument amounts to true. Hence the first function returns false, and the second
function returns false.

4. What will be the output of the following Python code?

['f', 't'][bool('spam')]
a) t
b) f
c) No output
d) Error

Answer: a
Explanation: The line of code can be translated to state that ‘f’ is printed if the
argument passed to the Boolean function amount to zero. Else ‘t’ is printed. The
argument given to the Boolean function in the above case is ‘spam’, which does not
amount to zero. Hence the output is t.

5. What will be the output of the following Python code?

l=[1, 0, 2, 0, 'hello', '', []]
list(filter(bool, l))
a) Error
b) [1, 0, 2, 0, ‘hello’, ”, []]
c) [1, 0, 2, ‘hello’, ”, []]
d) [1, 2, ‘hello’]

Answer: d
Explanation: The code shown above returns a new list containing only those elements
of the list l which do not amount to zero. Hence the output is: [1, 2, ‘hello’].

6. What will be the output of the following Python code if the system date is 21st June,
2017 (Wednesday)?
[] or {}
{} or []
a)
[]
{}
b)
[]
[]
c)
{}

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 []
d)
{}
{}

Answer: c
Explanation: The code shown above shows two functions. In both the cases the right
operand is returned. This is because each function is evaluated from left to right.
Since the left operand is false, it is assumed that the right operand must be true and
hence the right operand is returned in each of the above case.

7. What will be the output of the following Python code?

class Truth:
pass
x=Truth()
bool(x)
a) pass
b) true
c) false
d) error

Answer: b
Explanation: If the truth method is not defined, the object is considered true. Hence
the output of the code shown above is true.

8. What will be the output of the following Python code?

if (9 < 0) and (0 < -9):
print("hello")
elif (9 > 0) or False:
print("good")
else:
print("bad")
a) error
b) hello
c) good
d) bad

Answer: c
Explanation: The code shown above prints the appropriate option depending on the
conditions given. The condition which matches is (9>0), and hence the output is: good.

9. Which of the following Boolean expressions is not logically equivalent to the other
three?
a) not(-6<0 or-6>10)
b) -6>=0 and -6<=10
c) not(-6<10 or-6==10)

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d) not(-6>10 or-6==10)

Answer: d
Explanation: The expression not(-6<0 or -6>10) returns the output False.
The expression -6>=0 and -6<=10 returns the output False.
The expression not(-6<10 or -6==10) returns the output False.
The expression not(-6>10 or -6==10) returns the output True.

10. What will be the output of the following Python code snippet?
not(10<20) and not(10>30)
a) True
b) False
c) Error
d) No output

Answer: b
Explanation: The expression not(10<20) returns false. The expression not(10>30)
returns true. The and operation between false and true returns false. Hence the
output is false.

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 Python Question and Answers – Formatting – 1

1. What will be the output of the following Python code snippet?

X=”hi”
print(“05d”%X)
a) 00000hi
b) 000hi
c) hi000
d) error

Answer: d
Explanation: The code snippet shown above results in an error because the above
formatting option works only if ‘X’ is a number. Since in the above case ‘X’ is a
string, an error is thrown.

2. What will be the output of the following Python code snippet?

X=”san-foundry”
print(“%56s”,X)
a) 56 blank spaces before san-foundry
b) 56 blank spaces before san and foundry
c) 56 blank spaces after san-foundry
d) no change

Answer: a
Explanation: The formatting option print(“%Ns”,X) helps us add ‘N’ number of
spaces before a given string ‘X’. Hence the output for the code snippet shown above
will be 56 blank spaces before the string “san-foundry”.

3. What will be the output of the following Python expression if x=456?

print("%-06d"%x)
a) 000456
b) 456000
c) 456
d) error

Answer: c
Explanation: The expression shown above results in the output 456.

4. What will be the output of the following Python expression if X=345?

print(“%06d”%X)
a) 345000
b) 000345
c) 000000345
d) 345000000

Answer: b
Explanation: The above expression returns the output 000345. It adds the required

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number of zeroes before the given number in order to make the number of digits 6 (as
specified in this case).

5. Which of the following formatting options can be used in order to add ‘n’ blank spaces
after a given string ‘S’?
a) print(“-ns”%S)
b) print(“-ns”%S)
c) print(“%ns”%S)
d) print(“%-ns”%S)

Answer: d
Explanation: In order to add ‘n’ blank spaces after a given string ‘S’, we use the
formatting option:(“%-ns”%S).

6. What will be the output of the following Python expression if X = -122?

print("-%06d"%x)
a) -000122
b) 000122
c) –00122
d) -00122

Answer: c
Explanation: The given number is -122. Here the total number of digits (including the
negative sign) should be 6 according to the expression. In addition to this, there is a
negative sign in the given expression. Hence the output will be – -00122.

7. What will be the output of the following Python expression if the value of x is 34?
print(“%f”%x)
a) 34.00
b) 34.0000
c) 34.000000
d) 34.00000000

Answer: c
Explanation: The expression shown above normally returns the value with 6 decimal
points if it is not specified with any number. Hence the output of this expression will
be: 34.000000 (6 decimal points).

8. What will be the output of the following Python expression if x=56.236?

print("%.2f"%x)
a) 56.00
b) 56.24
c) 56.23
d) 0056.236

Answer: b
Explanation: The expression shown above rounds off the given number to the number

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of decimal places specified. Since the expression given specifies rounding off to two
decimal places, the output of this expression will be 56.24. Had the value been
x=56.234 (last digit being any number less than 5), the output would have been 56.23.

9. What will be the output of the following Python expression if x=22.19?

print("%5.2f"%x)
a) 22.1900
b) 22.00000
c) 22.19
d) 22.20

Answer: c
Explanation: The output of the expression above will be 22.19. This expression
specifies that the total number of digits (including the decimal point) should be 5,
rounded off to two decimal places.

10. The expression shown below results in an error.

print("-%5d0",989)
a) True
b) False

Answer: b
Explanation: The expression shown above does not result in an error. The output of
this expression is -%5d0 989. Hence this statement is incorrect.

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 Python Question and Answers – Formatting – 2

1. What will be the output of the following Python code snippet?

'%d %s %g you' %(1, 'hello', 4.0)
a) Error
b) 1 hello you 4.0
c) 1 hello 4 you
d) 1 4 hello you

Answer: c
Explanation: In the snippet of code shown above, three values are inserted into the
target string. When we insert more than one value, we should group the values on the
right in a tuple. The % formatting expression operator expects either a single item or
a tuple of one or more items on its right side.

2. The output of which of the codes shown below will be: “There are 4 blue birds.”?
a) ‘There are %g %d birds.’ %4 %blue
b) ‘There are %d %s birds.’ %(4, blue)
c) ‘There are %s %d birds.’ %[4, blue]
d) ‘There are %d %s birds.’ 4, blue

Answer: b
Explanation: The code ‘There are %d %s birds.’ %(4, blue) results in the output:
There are 4 blue birds. When we insert more than one value, we should group the
values on the right in a tuple.

3. What will be the output of the python code shown below for various styles of format
specifiers?
x=1234
res='integers:...%d...%-6d...%06d' %(x, x, x)
res
a) ‘integers:…1234…1234 …001234’
b) ‘integers…1234…1234…123400’
c) ‘integers:… 1234…1234…001234’
d) ‘integers:…1234…1234…001234’

Answer: a
Explanation: The code shown above prints 1234 for the format specified %d, ‘1234 ’
for the format specifier %-6d (minus ‘-‘ sign signifies left justification), and 001234
for the format specifier %06d. Hence the output of this code is:
‘integers:…1234…1234 …001234’

4. What will be the output of the following Python code snippet?

x=3.3456789
'%f | %e | %g' %(x, x, x)
a) Error
b) ‘3.3456789 | 3.3456789+00 | 3.345678’

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c) ‘3.345678 | 3.345678e+0 | 3.345678’
d) ‘3.345679 | 3.345679e+00 | 3.34568’

Answer: d
Explanation: The %f %e and %g format specifiers represent floating point numbers
in different ways. %e and %E are the same, except that the exponent is in lowercase.
%g chooses the format by number content. Hence the output of this code is: ‘3.345679
| 3.345679e+00 | 3.34568’.

5. What will be the output of the following Python code snippet?

x=3.3456789
'%-6.2f | %05.2f | %+06.1f' %(x, x, x)
a) ‘3.35 | 03.35 | +003.3’
b) ‘3.3456789 | 03.3456789 | +03.3456789’
c) Error
d) ‘3.34 | 03.34 | 03.34+’

Answer: a
Explanation: The code shown above rounds the floating point value to two decimal
places. In this code, a variety of addition formatting features such as zero padding,
total field width etc. Hence the output of this code is: ‘3.35 | 03.35 | +003.3’.

6. What will be the output of the following Python code snippet?

x=3.3456789
'%s' %x, str(x)
a) Error
b) (‘3.3456789’, ‘3.3456789’)
c) (3.3456789, 3.3456789)
d) (‘3.3456789’, 3.3456789)

Answer: b
Explanation: We can simply convert strings with a %s format expression or the str
built-in function. Both of these methods have been shown in this code. Hence the
output is: ) (‘3.3456789’, ‘3.3456789’)

7. What will be the output of the following Python code snippet?

'%(qty)d more %(food)s' %{'qty':1, 'food': 'spam'}
a) Error
b) No output
c) ‘1 more foods’
d) ‘1 more spam’

Answer: d
Explanation: String formatting also allows conversion targets on the left to refer to the
keys in a dictionary coded on the right and fetch the corresponding values. In the code
shown above, (qty) and (food) in the format string on the left refers to keys in the

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dictionary literal on the right and fetch their assorted values. Hence the output of the
code shown above is: 1 more spam.

8. What will be the output of the following Python code snippet?

a='hello'
q=10
vars()
a) {‘a’ : ‘hello’, ‘q’ : 10, ……..plus built-in names set by Python….}
b) {……Built in names set by Python……}
c) {‘a’ : ‘hello’, ‘q’ : 10}
d) Error

Answer: a
Explanation: The built in function vars() returns a dictionary containing all the
variables that exist in the place. Hence the output of the code shown above is: {‘a’ :
‘hello’, ‘q’ : 10, ……..plus built-in names set by Python….}

9. What will be the output of the following Python code?

s='{0}, {1}, and {2}'
s.format('hello', 'good', 'morning')
a) ‘hello good and morning’
b) ‘hello, good, morning’
c) ‘hello, good, and morning’
d) Error

Answer: c
Explanation: Within the subject string, curly braces designate substitution targets and
arguments to be inserted either by position or keyword. Hence the output of the code
shown above:’hello, good,and morning’.

10. What will be the output of the following Python code?

s='%s, %s & %s'
s%('mumbai', 'kolkata', 'delhi')
a) mumbai kolkata & delhi
b) Error
c) No output
d) ‘mumbai, kolkata & delhi’

Answer: d
Explanation: In the code shown above, the format specifier %s is replaced by the
designated substitution. Hence the output of the code shown above is: ‘mumbai,
kolkata & delhi’.

11. What will be the output of the following Python code?

t = '%(a)s, %(b)s, %(c)s'
t % dict(a='hello', b='world', c='universe')

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a) ‘hello, world, universe’
b) ‘hellos, worlds, universes’
c) Error
d) hellos, world, universe

Answer: a
Explanation: Within the subject string, curly braces represent substitution targets
and arguments to be inserted. Hence the output of the code shown above:
‘hello, world, universe’.

12. What will be the output of the following Python code?

'{a}, {0}, {abc}'.format(10, a=2.5, abc=[1, 2])
a) Error
b) ‘2.5, 10, [1, 2]’
c) 2.5, 10, 1, 2
d) ’10, 2.5, [1, 2]’

Answer: b
Explanation: Since we have specified that the order of the output be: {a}, {0}, {abc},
hence the value of associated with {a} is printed first followed by that of {0} and {abc}.
Hence the output of the code shown above is: ‘2.5, 10, [1, 2]’.

13. What will be the output of the following Python code?

'{0:.2f}'.format(1.234)
a) ‘1’
b) ‘1.234’
c) ‘1.23’
d) ‘1.2’

Answer: c
Explanation: The code shown above displays the string method to round off a given
decimal number to two decimal places. Hence the output of the code is: ‘1.23’.

14. What will be the output of the following Python code?

'%x %d' %(255, 255)
a) ‘ff, 255’
b) ‘255, 255’
c) ‘15f, 15f’
d) Error

Answer: a
Explanation: The code shown above converts the given arguments to hexadecimal and
decimal values and prints the result. This is done using the format specifiers %x and
%d respectively. Hence the output of the code shown above is: ‘ff, 255’.

15. The output of the two codes shown below is the same.
i. '{0:.2f}'.format(1/3.0)

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ii. '%.2f'%(1/3.0)
a) True
b) False

Answer: a
Explanation: The two codes shown above represent the same operation but in
different formats. The output of both of these functions is: ‘0.33’. Hence the statement
is true.

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 Python Questions and Answers – Advanced Formatting Tools

1. What will be the output of the following Python code?

l=list('HELLO')
'first={0[0]}, third={0[2]}'.format(l)
a) ‘first=H, third=L’
b) ‘first=0, third=2’
c) Error
d) ‘first=0, third=L’

Answer: a
Explanation: In the code shown above, the value for first is substituted by l[0], that is
H and the value for third is substituted by l[2], that is L. Hence the output of the code
shown above is: ‘first=H, third=L’. The list l= [‘H’, ‘E’, ‘L’, ‘L’, ‘O’].

2. What will be the output of the following Python code?

l=list('HELLO')
p=l[0], l[-1], l[1:3]
'a={0}, b={1}, c={2}'.format(*p)
a) Error
b) “a=’H’, b=’O’, c=(E, L)”
c) “a=H, b=O, c=[‘E’, ‘L’]”
d) Junk value

Answer: c
Explanation: In the code shown above, the value for a is substituted by l[0], that is
‘H’, the value of b is substituted by l[-1], that is ‘O’ and the value for c is substituted
by l[1:3]. Here the use of *p is to unpack a tuple items into individual function
arguments.

3. The formatting method {1:<10} represents the ___________ positional argument,

_________ justified in a 10 character wide field.
a) first, right
b) second, left
c) first, left
d) second, right

Answer: b
Explanation: The formatting method {1:<10} represents the second positional
argument, left justified in a 10 character wide field.

4. What will be the output of the following Python code?

hex(255), int('FF', 16), 0xFF
a) [0xFF, 255, 16, 255]
b) (‘0xff’, 155, 16, 255)
c) Error

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d) (‘0xff’, 255, 255)

Answer: d
Explanation: The code shown above converts the value 255 into hexadecimal, that is,
0xff. The value ‘FF’ into integer. Hence the output of the code shown is: (‘0xff’, 255,
255).

5. The output of the two codes shown below is the same.

i. bin((2**16)-1)
ii. '{}'.format(bin((2**16)-1))
a) True
b) False

Answer: a
Explanation: The output of both of the codes shown above is ‘0b1111111111111111’.
Hence the statement is true.

6. What will be the output of the following Python code?

'{a}{b}{a}'.format(a='hello', b='world')
a) ‘hello world’
b) ‘hello’ ‘world’ ‘hello’
c) ‘helloworldhello’
d) ‘hello’ ‘hello’ ‘world’

Answer: c
Explanation: The code shown above prints the values substituted for a, b, a, in the
same order. This operation is performed using the format function. Hence the output
of the code is: ‘helloworldhello’.

7. What will be the output of the following Python code?

D=dict(p='san', q='foundry')
'{p}{q}'.format(**D)
a) Error
b) sanfoundry
c) san foundry
d) {‘san’, ‘foundry’}

Answer: b
Explanation: The code shown above prints the values substituted for p and q in the
same order. Note that there is no blank space between p and q. Hence the output is:
sanfoundry.

8. What will be the output of the following Python code?

'The {} side {1} {2}'.format('bright', 'of', 'life')
a) Error
b) ‘The bright side of life’
c) ‘The {bright} side {of} {life}’

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d) No output

Answer: a
Explanation: The code shown above results in an error. This is because we have
switched from automatic field numbering to manual field numbering, that is, from {}
to {1}. Hence this code results in an error.

9. What will be the output of the following Python code?

'{0:f}, {1:2f}, {2:05.2f}'.format(1.23456, 1.23456, 1.23456)
a) Error
b) ‘1.234560, 1.22345, 1.23’
c) No output
d) ‘1.234560, 1.234560, 01.23’

Answer: d
Explanation: In the code shown above, various formatting options are displayed using
the format option. Hence the output of this code is: ‘1.234560, 1.234560, 01.23’

10. What will be the output of the following Python code?

'%.2f%s' % (1.2345, 99)
a) ‘1.2345’, ‘99’
b) ‘1.2399’
c) ‘1.234599’
d) 1.23, 99

Answer: b
Explanation: In this code, we must notice that since multiple values haven been given,
they should be enclosed in a tuple. Since the formatting format is %.2f, the value
1.2345 is reduced to two decimal places. Hence the output of the code shown above:
‘1.2399’.

11. What will be the output of the following Python code?

'%s' %((1.23,),)
a) ‘(1.23,)’
b) 1.23,
c) (,1.23)
d) ‘1.23’

Answer: a
Explanation: The formatting expression accepts either a single substitution value, or a
tuple of one or more items. Since single item can be given either by itself or within the
tuple, a tuple to be formatted must be provided as a tested tuple. Hence the output of
the code is: >>> ‘%s’ %((1.23,),).

12. What will be the output of the following two codes?

i. '{0}'.format(4.56)
ii. '{0}'.format([4.56,])

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a) ‘4.56’, ‘4.56,’
b) ‘4.56’, ‘[4.56]’
c) 4.56, [4.56,]
d) 4.56, [4.56,]

Answer: b
Explanation: The code shown above shows the formatting option on the same value,
that is 4.56, where in the second case, the value is enclosed in a list. Hence the output
of the code shown above is:
‘4.56’, ‘[4.56]’

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 Python Questions and Answers – While and For Loops – 1

1. What will be the output of the following Python code?

x = ['ab', 'cd']
for i in x:
i.upper()
print(x)
a) [‘ab’, ‘cd’]
b) [‘AB’, ‘CD’]
c) [None, None]
d) none of the mentioned

Answer: a
Explanation: The function upper() does not modify a string in place, it returns a new
string which isn’t being stored anywhere.

2. What will be the output of the following Python code?

x = ['ab', 'cd']
for i in x:
x.append(i.upper())
print(x)
a) [‘AB’, ‘CD’]
b) [‘ab’, ‘cd’, ‘AB’, ‘CD’]
c) [‘ab’, ‘cd’]
d) none of the mentioned

Answer: d
Explanation: The loop does not terminate as new elements are being added to the list
in each iteration.

3. What will be the output of the following Python code?

i=1
while True:
if i%3 == 0:
break
print(i)

i+=1
a) 1 2
b) 1 2 3
c) error
d) none of the mentioned

Answer: c
Explanation: SyntaxError, there shouldn’t be a space between + and = in +=.

4. What will be the output of the following Python code?

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i=1
while True:
if i%0O7 == 0:
break
print(i)
i += 1
a) 1 2 3 4 5 6
b) 1 2 3 4 5 6 7
c) error
d) none of the mentioned

Answer: a
Explanation: Control exits the loop when i becomes 7.

5. What will be the output of the following Python code?

i=5
while True:
if i%0O11 == 0:
break
print(i)
i += 1
a) 5 6 7 8 9 10
b) 5 6 7 8
c) 5 6
d) error

Answer: b
Explanation: 0O11 is an octal number.

6. What will be the output of the following Python code?

i=5
while True:
if i%0O9 == 0:
break
print(i)
i += 1
a) 5 6 7 8
b) 5 6 7 8 9
c) 5 6 7 8 9 10 11 12 13 14 15 ….
d) error

Answer: d
Explanation: 9 isn’t allowed in an octal number.

7. What will be the output of the following Python code?

i=1
while True:

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 if i%2 == 0:
break
print(i)
i += 2
a) 1
b) 1 2
c) 1 2 3 4 5 6 …
d) 1 3 5 7 9 11 …

Answer: d
Explanation: The loop does not terminate since i is never an even number.

8. What will be the output of the following Python code?

i=2
while True:
if i%3 == 0:
break
print(i)
i += 2
a) 2 4 6 8 10 …
b) 2 4
c) 2 3
d) error

Answer: b
Explanation: The numbers 2 and 4 are printed. The next value of i is 6 which is
divisible by 3 and hence control exits the loop.

9. What will be the output of the following Python code?

i=1
while False:
if i%2 == 0:
break
print(i)
i += 2
a) 1
b) 1 3 5 7 …
c) 1 2 3 4 …
d) none of the mentioned

Answer: d
Explanation: Control does not enter the loop because of False.

10. What will be the output of the following Python code?

True = False
while True:
print(True)

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 break
a) True
b) False
c) None
d) none of the mentioned

Answer: d
Explanation: SyntaxError, True is a keyword and it’s value cannot be changed.

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 Python Questions and Answers – While and For Loops – 2

1. What will be the output of the following Python code?

i=0
while i < 5:
print(i)
i += 1
if i == 3:
break
else:
print(0)
a) 0 1 2 0
b) 0 1 2
c) error
d) none of the mentioned

Answer: b
Explanation: The else part is not executed if control breaks out of the loop.

2. What will be the output of the following Python code?

i=0
while i < 3:
print(i)
i += 1
else:
print(0)
a) 0 1 2 3 0
b) 0 1 2 0
c) 0 1 2
d) error

Answer: b
Explanation: The else part is executed when the condition in the while statement is
false.

3. What will be the output of the following Python code?

x = "abcdef"
while i in x:
print(i, end=" ")
a) a b c d e f
b) abcdef
c) i i i i i i …
d) error

Answer: d
Explanation: NameError, i is not defined.

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4. What will be the output of the following Python code?
x = "abcdef"
i = "i"
while i in x:
print(i, end=" ")
a) no output
b) i i i i i i …
c) a b c d e f
d) abcdef

Answer: a
Explanation: “i” is not in “abcdef”.

5. What will be the output of the following Python code?

x = "abcdef"
i = "a"
while i in x:
print(i, end = " ")
a) no output
b) i i i i i i …
c) a a a a a a …
d) a b c d e f

Answer: c
Explanation: As the value of i or x isn’t changing, the condition will always evaluate to
True.

6. What will be the output of the following Python code?

x = "abcdef"
i = "a"
while i in x:
print('i', end = " ")
a) no output
b) i i i i i i …
c) a a a a a a …
d) a b c d e f

Answer: b
Explanation: As the value of i or x isn’t changing, the condition will always evaluate to
True.

7. What will be the output of the following Python code?

x = "abcdef"
i = "a"
while i in x:
x = x[:-1]
print(i, end = " ")

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a) i i i i i i
b) a a a a a a
c) a a a a a
d) none of the mentioned

Answer: b
Explanation: The string x is being shortened by one character in each iteration.

8. What will be the output of the following Python code?

x = "abcdef"
i = "a"
while i in x[:-1]:
print(i, end = " ")
a) a a a a a
b) a a a a a a
c) a a a a a a …
d) a

Answer: c
Explanation: String x is not being altered and i is in x[:-1].

9. What will be the output of the following Python code?

x = "abcdef"
i = "a"
while i in x:
x = x[1:]
print(i, end = " ")
a) a a a a a a
b) a
c) no output
d) error

Answer: b
Explanation: The string x is being shortened by one character in each iteration.

10. What will be the output of the following Python code?

x = "abcdef"
i = "a"
while i in x[1:]:
print(i, end = " ")
a) a a a a a a
b) a
c) no output
d) error

Answer: c
Explanation: i is not in x[1:].

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 Python Questions and Answers – While and For Loops – 3

1. What will be the output of the following Python code?

x = 'abcd'
for i in x:
print(i)
x.upper()
a) a B C D
b) a b c d
c) A B C D
d) error

Answer: b
Explanation: Changes do not happen in-place, rather a new instance of the string is
returned.

2. What will be the output of the following Python code?

x = 'abcd'
for i in x:
print(i.upper())
a) a b c d
b) A B C D
c) a B C D
d) error

Answer: b
Explanation: The instance of the string returned by upper() is being printed.

3. What will be the output of the following Python code?

x = 'abcd'
for i in range(x):
print(i)
a) a b c d
b) 0 1 2 3
c) error
d) none of the mentioned

Answer: c
Explanation: range(str) is not allowed.

4. What will be the output of the following Python code?

x = 'abcd'
for i in range(len(x)):
print(i)
a) a b c d
b) 0 1 2 3
c) error

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d) 1 2 3 4

Answer: b
Explanation: i takes values 0, 1, 2 and 3.

5. What will be the output of the following Python code?

x = 'abcd'
for i in range(len(x)):
print(i.upper())
a) a b c d
b) 0 1 2 3
c) error
d) 1 2 3 4

Answer: c
Explanation: Objects of type int have no attribute upper().

6. What will be the output of the following Python code snippet?

x = 'abcd'
for i in range(len(x)):
i.upper()
print (x)
a) a b c d
b) 0 1 2 3
c) error
d) none of the mentioned

Answer: c
Explanation: Objects of type int have no attribute upper().

7. What will be the output of the following Python code snippet?

x = 'abcd'
for i in range(len(x)):
x[i].upper()
print (x)
a) abcd
b) ABCD
c) error
d) none of the mentioned

Answer: a
Explanation: Changes do not happen in-place, rather a new instance of the string is
returned.

8. What will be the output of the following Python code snippet?

x = 'abcd'
for i in range(len(x)):

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 i[x].upper()
print (x)
a) abcd
b) ABCD
c) error
d) none of the mentioned

Answer: c
Explanation: Objects of type int aren’t subscriptable. However, if the statement was
x[i], an error would not have been thrown.

9. What will be the output of the following Python code snippet?

x = 'abcd'
for i in range(len(x)):
x = 'a'
print(x)
a) a
b) abcd abcd abcd
c) a a a a
d) none of the mentioned

Answer: c
Explanation: range() is computed only at the time of entering the loop.

10. What will be the output of the following Python code snippet?
x = 'abcd'
for i in range(len(x)):
print(x)
x = 'a'
a) a
b) abcd abcd abcd abcd
c) a a a a
d) none of the mentioned

Answer: d
Explanation: abcd a a a is the output as x is modified only after ‘abcd’ has been
printed once.

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 Python Questions and Answers – While and For Loops – 4

1. What will be the output of the following Python code?

x = 123
for i in x:
print(i)
a) 1 2 3
b) 123
c) error
d) none of the mentioned

Answer: c
Explanation: Objects of type int are not iterable.

2. What will be the output of the following Python code?

d = {0: 'a', 1: 'b', 2: 'c'}
for i in d:
print(i)
a) 0 1 2
b) a b c
2 c 1 b c) 0 a
d) none of the mentioned

Answer: a
Explanation: Loops over the keys of the dictionary.

3. What will be the output of the following Python code?

d = {0: 'a', 1: 'b', 2: 'c'}
for x, y in d:
print(x, y)
a) 0 1 2
b) a b c
2 c 1 b c) 0 a
d) none of the mentioned

Answer: d
Explanation: Error, objects of type int aren’t iterable.

4. What will be the output of the following Python code?

d = {0: 'a', 1: 'b', 2: 'c'}
for x, y in d.items():
print(x, y)
a) 0 1 2
b) a b c
2 c 1 b c) 0 a
d) none of the mentioned

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Answer: c
Explanation: Loops over key, value pairs.

5. What will be the output of the following Python code?

d = {0: 'a', 1: 'b', 2: 'c'}
for x in d.keys():
print(d[x])
a) 0 1 2
b) a b c
2 c 1 b c) 0 a
d) none of the mentioned

Answer: b
Explanation: Loops over the keys and prints the values.

6. What will be the output of the following Python code?

d = {0: 'a', 1: 'b', 2: 'c'}
for x in d.values():
print(x)
a) 0 1 2
b) a b c
2 c 1 b c) 0 a
d) none of the mentioned

Answer: b
Explanation: Loops over the values.

7. What will be the output of the following Python code?

d = {0: 'a', 1: 'b', 2: 'c'}
for x in d.values():
print(d[x])
a) 0 1 2
b) a b c
2 c 1 b c) 0 a
d) none of the mentioned

Answer: d
Explanation: Causes a KeyError.

8. What will be the output of the following Python code?

d = {0, 1, 2}
for x in d.values():
print(x)
a) 0 1 2
b) None None None
c) error

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d) none of the mentioned

Answer: c
Explanation: Objects of type set have no attribute values.

9. What will be the output of the following Python code?

d = {0, 1, 2}
for x in d:
print(x)
a) 0 1 2
b) {0, 1, 2} {0, 1, 2} {0, 1, 2}
c) error
d) none of the mentioned

Answer: a
Explanation: Loops over the elements of the set and prints them.

10. What will be the output of the following Python code?

d = {0, 1, 2}
for x in d:
print(d.add(x))
a) 0 1 2
b) 0 1 2 0 1 2 0 1 2 …
c) None None None
d) None of the mentioned

Answer: c
Explanation: Variable x takes the values 0, 1 and 2. set.add() returns None which is
printed.

11. What will be the output of the following Python code?

for i in range(0):
print(i)
a) 0
b) no output
c) error
d) none of the mentioned

Answer: b
Explanation: range(0) is empty.

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 Python Questions and Answers – While and For Loops – 5

1. What will be the output of the following Python code?

for i in range(2.0):
print(i)
a) 0.0 1.0
b) 0 1
c) error
d) none of the mentioned

Answer: c
Explanation: Object of type float cannot be interpreted as an integer.

2. What will be the output of the following Python code?

for i in range(int(2.0)):
print(i)
a) 0.0 1.0
b) 0 1
c) error
d) none of the mentioned

Answer: b
Explanation: range(int(2.0)) is the same as range(2).

3. What will be the output of the following Python code?

for i in range(float('inf')):
print (i)
a) 0.0 0.1 0.2 0.3 …
b) 0 1 2 3 …
c) 0.0 1.0 2.0 3.0 …
d) none of the mentioned

Answer: d
Explanation: Error, objects of type float cannot be interpreted as an integer.

4. What will be the output of the following Python code?

for i in range(int(float('inf'))):
print (i)
a) 0.0 0.1 0.2 0.3 …
b) 0 1 2 3 …
c) 0.0 1.0 2.0 3.0 …
d) none of the mentioned

Answer: d
Explanation: OverflowError, cannot convert float infinity to integer.

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5. What will be the output of the following Python code snippet?
for i in [1, 2, 3, 4][::-1]:
print (i)
a) 1 2 3 4
b) 4 3 2 1
c) error
d) none of the mentioned

Answer: b
Explanation: [::-1] reverses the list.

6. What will be the output of the following Python code snippet?

for i in ''.join(reversed(list('abcd'))):
print (i)
a) a b c d
b) d c b a
c) error
d) none of the mentioned

Answer: b
Explanation: ‘ ‘.join(reversed(list(‘abcd’))) reverses a string.

7. What will be the output of the following Python code snippet?

for i in 'abcd'[::-1]:
print (i)
a) a b c d
b) d c b a
c) error
d) none of the mentioned

Answer: b
Explanation: [::-1] reverses the string.

8. What will be the output of the following Python code snippet?

for i in '':
print (i)
a) None
b) (nothing is printed)
c) error
d) none of the mentioned

Answer: b
Explanation: The string does not have any character to loop over.

9. What will be the output of the following Python code snippet?

x=2
for i in range(x):

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 x += 1
print (x)
a) 0 1 2 3 4 …
b) 0 1
c) 3 4
d) 0 1 2 3

Answer: c
Explanation: Variable x is incremented and printed twice.

10. What will be the output of the following Python code snippet?
x=2
for i in range(x):
x -= 2
print (x)
a) 0 1 2 3 4 …
b) 0 -2
c) 0
d) error

Answer: b
Explanation: The loop is entered twice.

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 Python Questions and Answers – While and For Loops – 6

1. What will be the output of the following Python code?

for i in range(10):
if i == 5:
break
else:
print(i)
else:
print("Here")
a) 0 1 2 3 4 Here
b) 0 1 2 3 4 5 Here
c) 0 1 2 3 4
d) 1 2 3 4 5

Answer: c
Explanation: The else part is executed if control doesn’t break out of the loop.

2. What will be the output of the following Python code?

for i in range(5):
if i == 5:
break
else:
print(i)
else:
print("Here")
a) 0 1 2 3 4 Here
b) 0 1 2 3 4 5 Here
c) 0 1 2 3 4
d) 1 2 3 4 5

Answer: a
Explanation: The else part is executed if control doesn’t break out of the loop.

3. What will be the output of the following Python code?

x = (i for i in range(3))
for i in x:
print(i)
a) 0 1 2
b) error
c) 0 1 2 0 1 2
d) none of the mentioned

Answer: a
Explanation: The first statement creates a generator object.

4. What will be the output of the following Python code?

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x = (i for i in range(3))
for i in x:
print(i)
for i in x:
print(i)
a) 0 1 2
b) error
c) 0 1 2 0 1 2
d) none of the mentioned

Answer: a
Explanation: We can loop over a generator object only once.

5. What will be the output of the following Python code?

string = "my name is x"
for i in string:
print (i, end=", ")
a) m, y, , n, a, m, e, , i, s, , x,
b) m, y, , n, a, m, e, , i, s, , x
c) my, name, is, x,
d) error

Answer: a
Explanation: Variable i takes the value of one character at a time.

6. What will be the output of the following Python code?

string = "my name is x"
for i in string.split():
print (i, end=", ")
a) m, y, , n, a, m, e, , i, s, , x,
b) m, y, , n, a, m, e, , i, s, , x
c) my, name, is, x,
d) error

Answer: c
Explanation: Variable i takes the value of one word at a time.

7. What will be the output of the following Python code snippet?

a = [0, 1, 2, 3]
for a[-1] in a:
print(a[-1])
a) 0 1 2 3
b) 0 1 2 2
c) 3 3 3 3
d) error

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Answer: b
Explanation: The value of a[-1] changes in each iteration.

8. What will be the output of the following Python code snippet?

a = [0, 1, 2, 3]
for a[0] in a:
print(a[0])
a) 0 1 2 3
b) 0 1 2 2
c) 3 3 3 3
d) error

Answer: a
Explanation: The value of a[0] changes in each iteration. Since the first value that it
takes is itself, there is no visible error in the current example.

9. What will be the output of the following Python code snippet?

a = [0, 1, 2, 3]
i = -2
for i not in a:
print(i)
i += 1
a) -2 -1
b) 0
c) error
d) none of the mentioned

Answer: c
Explanation: SyntaxError, not in isn’t allowed in for loops.

10. What will be the output of the following Python code snippet?
string = "my name is x"
for i in ' '.join(string.split()):
print (i, end=", ")
a) m, y, , n, a, m, e, , i, s, , x,
b) m, y, , n, a, m, e, , i, s, , x
c) my, name, is, x,
d) error

Answer: a
Explanation: Variable i takes the value of one character at a time.

P SURESH BABU, PGT-COMPUTER SCIENCE Page 99 of 352

 CHAPTER-2 - PYTHON REVISION TOUR-2
(STRING, LIST, TUPLE, DICTIONARY, MODULE)

MULTIPLE CHOICE QUESTIONS:

1. What will be the output of the following Python code?

2
0
1
error
Correct answer
0

2. What will be the output of the following Python code snippet?

True
False
None
Error
Correct answer
False

3. What will be the output of the following Python code?

pqrst
pqrst
pqrst
pqrst
Correct answer
pqrst

4. What will be the output of the following Python code?

True
False
None
Error

5. What will be the output of the following Python code snippet?

P SURESH BABU, PGT-COMPUTER SCIENCE Page 100 of 352

 XY!@
xy12
xY!4
xY1@
Correct answer
xY!4

6. What will be the output of the following Python code?

2
0
error
none of the mentioned

7. What will be the output of the following Python statement?

p
pq
rs
sr
Correct answer
rs

8. What will be the output of the following Python code snippet?

mn22qr
mn22qr22
mnopqr22
none of the mentioned
Correct answer
mn22qr22

9. What will be the output of the following Python code snippet?

Error
The sum of 5 and 12 is 17

The sum of 0 and 1 is 2

None of the mentioned
P SURESH BABU, PGT-COMPUTER SCIENCE Page 101 of 352
 10. What will be the output of the following Python code snippet?

True
False
None
Error
Correct answer
True

11. What will be the output of the following Python code snippet?

0+88
0088
+088
++88
Correct answer
+088

12. Which of the following statement prints hello\example\test.txt?

print(“hello\example\test.txt”)
print(“hello\\example\\test.txt”)
print(“hello\”example\”test.txt”)
print(“hello”\example”\test.txt”)
Correct answer
print(“hello\\example\\test.txt”)

13. What will be the output of the following Python code snippet?

['pq', 'rs', 'tv']

[‘pq\n’, ‘rs\n’, ‘tv\n’]
[‘pq\n’, ‘rs\n’, ‘tv’]
[‘pq’, ‘rs’, ‘tv\n’]

Correct answer
['pq', 'rs', 'tv']

14. What will be the output of the following Python code snippet?

Pq rs tu
Pq rs tU
P SURESH BABU, PGT-COMPUTER SCIENCE Page 102 of 352
 Pq Rs Tu
None of the mentioned
Correct answer
Pq Rs Tu

15. print(0xA + 0xB + 0xC):

0xA0xB0xC
Error
0x22
33
Correct answer
33

16. What will be the output of the following Python code snippet?

10b10b1010a10
abbabbababaab
none of the mentioned
error
Correct answer
10b10b1010a10

17. To concatenate two strings to a third what statements are applicable?

s3 = s1 . s2
s3 = s1.add(s2)
s3 = s1.__add__(s2)
s3 = s1 s2

18. What will be the output of the following Python code?

terwarldwo
True

-1
None

19. What will be the output of the following Python code?

P SURESH BABU, PGT-COMPUTER SCIENCE Page 103 of 352

 snow
beautiful world
Error
beabtiful world
Correct answer
Error

20. What will be the output of the following Python code snippet?

(‘pqtv’)
(‘pqtv’, ‘rs’, ”)
('pqtv', '', '')
error

21. What will be the output of the following Python code?

Python fbb and fbb

Python 'fbb' and fbb
Python fbb and ‘bin’
Error
Correct answer
Python 'fbb' and fbb

22. What will be the output of the following Python code snippet?

[‘mn’, ‘qr’, ‘st’]

['mn', 'qr', 'st', '']
('mn', 'qr', 'st')
('mn', 'qr', 'st', '')
Correct answer
['mn', 'qr', 'st', '']

23. What will be the output of the “hello” +1+2+3?

hello123
hello
Error
hello6

24. What will be the output of the following Python code snippet?

P SURESH BABU, PGT-COMPUTER SCIENCE Page 104 of 352

 True
False
None
Error

25. What will be the output of the following Python code?

True
False
None
Error
Correct answer
True

26. What will be the output of the following Python code?

error
(‘wx’, ‘yz’)
('wx', 'yz', '')
none of the mentioned

Correct answer
('wx', 'yz', '')

27. What will be the output of the following Python code snippet?

Pq rs-tu
Pq Rs-tu
Pq Rs-Tu

28. None of the mentioned

29. What will be the output of the following Python code snippet?

True
False
None
Error

30. What will be the output of the following Python code snippet?

P SURESH BABU, PGT-COMPUTER SCIENCE Page 105 of 352

 True
False
None
Error
Correct answer
True

31. What will be the output of the following Python code snippet?

True
False
None
Error
Correct answer
True

32. What will be the output of the following Python code?

2
0
1
error
Correct answer
0

33. What will be the output of the following Python code snippet?

['mnopqropstop']
'mnopqropstop'
error
none of the mentioned
Correct answer
['mnopqropstop']

34. What will be the output of the following Python code snippet?

2,223,334,445
222,333,444,5
223334445

P SURESH BABU, PGT-COMPUTER SCIENCE Page 106 of 352

 Error
Correct answer
2,223,334,445

35. What will be the output of the following Python code?

pqrstv
pqrstv
pqrstv
pqrstv
Correct answer
pqrstv

36. What is “Hello”.replace(“l”, “e”)?

Heeeo
Heelo
Heleo
None
Correct answer
Heeeo

37. What will be the output of the following Python code?

esorder
red
rose
redrose
Correct answer
esorder

38. What will be the output of the following Python code?

{88: 50, 89: 51, 90: 52}

{80: 50, 81: 51, 82: 52}
432
234
Correct answer
{88: 50, 89: 51, 90: 52}

39. What will be the output of the following Python code?

P SURESH BABU, PGT-COMPUTER SCIENCE Page 107 of 352

 1pqrstv
pqrstv1
pqrstv
error
Correct answer
1pqrstv

40. What will be the output of the following Python code snippet?

The sum of 2 and 12 is 14

The sum of 10 and c is 16
The sum of 10 and a is c
Error

41. What will be the output of the following Python code?

error
u
t
y
Correct answer
y

42. What will be the output of the following Python statement?

Error

Option 2
x\95˜
\x95\x98
Correct answer
x\95˜

43. What will be the output of the following Python code?

True
False

P SURESH BABU, PGT-COMPUTER SCIENCE Page 108 of 352

 None
error
Correct answer
True

44. What is the default value of encoding in encode()?

ascii
qwerty
utf-8
utf-16
Correct answer
utf-8

45. What will be the output of the following Python code?

12mnopqr12
mnopqr1212
1212mnopqr

error
Correct answer
error

46. What will be the output of the following Python code?

x
2xy@
xy
y

47. What will be the output of the following Python code?

\tboo
boo
\boo
none of the mentioned
Correct answer
boo

48. What will be the output of the following Python code?

P SURESH BABU, PGT-COMPUTER SCIENCE Page 109 of 352

 mnopqr
mnopqr
mnopqr
mnopqr
Correct answer
mnopqr

49. What will be the output of the following Python code?

a new line and world

\nworld
the letter r and then world
error
Correct answer
\nworld

50. What will be the output of the following Python code?

0.33
40.40%
40.00%
42.00%
Correct answer
40.00%

51. What will be the output of the following Python code snippet?

True
False
None
Error
Correct answer
True

52. To return the length of string s what command do we execute?

s.__len__()
len(s)
size(s)
s.size()

Correct answer
P SURESH BABU, PGT-COMPUTER SCIENCE Page 110 of 352
 s.__len__()

53. What will be the output of the following Python statement?

x
yz
yzx
xyz
Correct answer
xyz

54. What will be the output of the following Python code snippet?

True
False
None
Error

55. What will be the output of the following Python code?

mn op qr
mnopqr
mn\top\tqr
mn op qr
Correct answer
mn op qr

56. What will be the output of the following Python code snippet?

True
False
None
Error
Correct answer
True

57. Given a string example=”hello” what is the output of example.count(‘l’)?

2
1

P SURESH BABU, PGT-COMPUTER SCIENCE Page 111 of 352

 None
0
Correct answer
2

58. What will be the output of the following Python code?

0
1
True
False
Correct answer
False

59. Say s=”hello” what will be the return value of type(s)?

int
bool
str
String

60. What will be the output of the following Python code snippet?

3,334,445,556
333,444,555,6
3334445556
Error
Correct answer
Error

61. What will be the output of the following Python code?

True
False
None
Error
Correct answer
False

62. What will be the output of the following Python code?

P SURESH BABU, PGT-COMPUTER SCIENCE Page 112 of 352

 op
mnopqr
error
none of the mentioned
Correct answer
mnopqr

63. To check whether string s1 contains another string s2, use _______

s1.__contains__(s2)
s2 in s1
s1.contains(s2)
si.in(s2)

Correct answer
s1.__contains__(s2)

64. What will be the output of the following Python code?

Python faa and bin

Python (‘faa’, ‘bin’) and (‘faa’, ‘bin’)

Error
None of the mentioned
Correct answer
Error

65. What will be the output of the following Python code?

2
0

1
error
Correct answer
2

66. Suppose s is “\t\tWorld\n”, what is s.strip()?

\t\tworld\n
\t\tWorld\n

\t\tWORLD\n
World

P SURESH BABU, PGT-COMPUTER SCIENCE Page 113 of 352

 Correct answer
World

67. What will be the output of the following Python code snippet?

pq1tvo
pqrtvs
pq1tvs

pq12ts2
Correct answer
pqrtvs

68. What will be the output of the following Python code snippet?

00xy
x00y

xy00
x0y0
Correct answer
00xy

69. What will be the output of the following Python code snippet?

pqtv
10
error

none of the mentioned

Correct answer
pqtv

70. What will be the output of the following Python code?

4
3
5
0
Correct answer
5
P SURESH BABU, PGT-COMPUTER SCIENCE Page 114 of 352
 71. What will be the output of the following Python code?

pqr xyz
PQR XYZ
Pqr xyz

Pqr Xyz

72. What will be the output of the following Python code snippet?

['mn', 'qr', 'stop']

[‘mn’, ‘qropstop’]
[‘qropstop’,‘mn’ ]
none of the mentioned

Correct answer
['mn', 'qr', 'stop']

73. What will be the output of the following Python code snippet?

pqrs
2345
error
none of the mentioned

Correct answer
pqrs

74. What will be the output of the following Python code?

Python {} and {}
Python fbb and bin
Error

Python and
Correct answer
Python fbb and bin

75. What will be the output of the following Python code snippet?

P SURESH BABU, PGT-COMPUTER SCIENCE Page 115 of 352

 xyzz
wxyz

xzyz
zxyz
Correct answer
xyzz

76. What will be the output of the following Python code?

SRQP

SRQP
PQRS
pqrs
Correct answer
SRQP

77. What will be the output of the following Python code snippet?

('rs')
(")

('rs', ", ")

('', 'rs', '')
Correct answer
('', 'rs', '')

78. What will be the output of the following Python code?

0.677777

0.67
0.6777:.2
Error
Correct answer
P SURESH BABU, PGT-COMPUTER SCIENCE Page 116 of 352
 0.67

79. What will be the output of the following Python code?

Jack Roy

Robin Roy
Jack Smith
Robin Smith
Correct answer
Robin Roy

80. What will be the output of the following Python code snippet?

[‘mn’, ‘qr’, ‘st’]

['mn', 'qr', 'st', '']

('mn', 'qr', 'st',)

['mn', 'qr', 'st']

81. What will be the output of the following Python code snippet?

True
False

None
Error
Correct answer
True

82. What will be the output of the following Python code?

P SURESH BABU, PGT-COMPUTER SCIENCE Page 117 of 352

 rs
pqrstv

error
none of the mentioned
Correct answer
error

83. What will be the output of the following Python statement?

Error

Output equivalent to print ‘black\berry’

blackberry
black berry
Correct answer
blackberry

84. What will be the output of the following Python code?

Python faa and bin

Python {name1} and {name2}
Error

Python and
Correct answer
Python faa and bin

85. What will be the output of the following Python code?

2
0
1
none of the mentioned

Correct answer
1

86. What will be the output of the following Python code?

{120: 50, 121: 51, 122: 52}

{97: 49, 98: 50, 99: 51}
P SURESH BABU, PGT-COMPUTER SCIENCE Page 118 of 352
 {100: 50, 101: 51, 102: 52}
234
Correct answer
{120: 50, 121: 51, 122: 52}

87. What will be the output of the following Python code?

True
False

Error
None of the mentioned

88. Suppose x is 6 and y is 4, x + y is same as ________

x.__add(y)
x.__add__(y)
x.__Add(y)

x.__ADD(y)
Correct answer
x.__add__(y)

89. What arithmetic operators cannot be used with strings?

+
_
All of the mentioned
Correct answer
_

90. What will be the output of the following Python code snippet?

2,223,334,445
222,333,444,5
2223334445
Error

91. What will be the output of the following Python code?

P SURESH BABU, PGT-COMPUTER SCIENCE Page 119 of 352

 1
True

3
2

92. What function do you use to read a string?

input(“Enter a string”)
eval(input(“Enter a string”))
enter(“Enter a string”)
eval(enter(“Enter a string”))

Correct answer
input(“Enter a string”)

93. What will be the output of the following Python code snippet?

3,334,445,556
333,444,555,6
3334445556
Error

94. What will be the output of the following Python code snippet?

True
False
None
Error

95. What will be the output of the following Python code snippet?

True
False
None
Error
Correct answer
True

96. What will be the output of the following Python code?

P SURESH BABU, PGT-COMPUTER SCIENCE Page 120 of 352

 None None
None 22
22 None
Error is generated
Correct answer
Error is generated

97. What will be the output of the following Python code?

w
world
he
rl

98. What will be the output of the following Python statement?

P
p
Error
b
Correct answer
P

99. What will be the output of the following Python code snippet?

True
False
None
Error
Correct answer
True

P SURESH BABU, PGT-COMPUTER SCIENCE Page 121 of 352

 100. What will be the output of the following Python code?

1pqrstv
pqrstv1
pqrstv
error

101. What will be the output of the following Python code?

224
Error
12
None
Correct answer
12

102. What will be the output of the following Python code?

pq+rs+tv
pq++++++++rs++++++++tv
pq rs tv
None of the mentioned
Correct answer
None of the mentioned

103. What will be the output of the following Python code?

(‘mn’, ‘op’, ‘qr’, ‘st’, ‘uv’)

('mn', 'op', 'qrstuv')
(‘mnopqr’, ‘st, ‘uv’)
error

104. What will be the output of the following Python code?

P SURESH BABU, PGT-COMPUTER SCIENCE Page 122 of 352

 4
0
Error
True
Correct answer
0

105. What will be the output of the following Python code snippet?

True
False
None
Error
Correct answer
True

106. If a class defines the __str__(self) method, for an object obj for the class, you
can use which command to invoke the __str__ method.

obj.__str__()
str(obj)
print obj
all of the mentioned
Correct answer
all of the mentioned

107. What will be the output of the following Python statement?

a
q
r
Q
Correct answer
q

108. What will be the output of the following Python code?

Python bin and fab

Python fab and bin
Error
None of the mentioned

P SURESH BABU, PGT-COMPUTER SCIENCE Page 123 of 352

 Correct answer
Python fab and bin

109. What will be the output of the following Python code?

nthopy
python
h
n
Correct answer
n

110. What will be the output of the following Python statement?(python 3.xx)

Python# 100#900.66
Python#100# 900.67
Python # 100#900.67
Python#100#900.67
Correct answer
Python # 100#900.67

111. What will be the output of the following Python code?

True
2
3
None of the mentioned
Correct answer
2

112. What will be the output of the following Python code?

(‘pq’, ‘tv’)
(‘pqtv’)
('pq', 'rs', 'tv')
2

P SURESH BABU, PGT-COMPUTER SCIENCE Page 124 of 352

 113. What will be the output of the following Python code?

error
rppqpqq
r
pqr
Correct answer
rppqpqq

114. What will be the output of the following Python code?

Error
-1
4
0

Correct answer
4

115. What will be the output of the following Python code?

xyz. PQR
XYZ. PQR
Xyz. pqr

Xyz. Pqr

116. What will be the output of the following Python code?

Python fff and bbb

Python (‘fff’, ‘bbb’) and (‘fff’, ‘bbb’)
Error
None of the mentioned

Correct answer
Python fff and bbb

117. The format function, when applied on a string returns ________

Error

P SURESH BABU, PGT-COMPUTER SCIENCE Page 125 of 352

 int
bool
str

118. What will be the output of the following Python code?

rppq
rq
rppqrqrp

none of the mentioned

Correct answer
rppq

119. What will be the output of the following Python code?

xyz
'xyz'
b’xyz’
h’xyz’

Correct answer
b’xyz’

120. What will be the output of the following Python code?

Python fff and bin

Python {name1} and {name2}
Error
Python and

Correct answer
Error

121. What will be the output of the following Python code?

pq rs tu
pqrstu
pq\trs\ttu

P SURESH BABU, PGT-COMPUTER SCIENCE Page 126 of 352

 pq rs tu
Correct answer
pq rs tu

122. What will be the output of the following Python code?

Python fff and bin

Python {0} and {1} fff bin
Error

Python 0 and 1
Correct answer
Python fff and bin

123. What will be the output of the following Python code?

2
0
1

none of the mentioned

Correct answer
2

124. What will be the output of the following Python code?

True
False
None

Error
Correct answer
False

125. What will be the output of the following Python code snippet?

abbabbababaab
10b10b1010a10

12babbababaab

P SURESH BABU, PGT-COMPUTER SCIENCE Page 127 of 352

 babbababaab12
Correct answer
abbabbababaab

126. What will be displayed by print(ord('b') - ord('a'));?

1
0

-1
2
Correct answer
1

127. Suppose y is 345.3546, what is format(y, “10.3f”) (_ indicates space).

__345.355
___345.355
____345.355
_____345.354

Correct answer
___345.355

P SURESH BABU, PGT-COMPUTER SCIENCE Page 128 of 352

 129. What will be the output of the following Python code?

An exception is thrown
{0: 'X0', 1: 'X1', 2: 'X2', 3: 'X3', 4: 'X4'}
{0: ‘X’, 1: ‘X’, 2: ‘X’, 3: ‘X’, 4: ‘X’}

{0: ‘0’, 1: ‘1’, 2: ‘2’, 3: ‘3’, 4: ‘4’}

Correct answer
{0: 'X0', 1: 'X1', 2: 'X2', 3: 'X3', 4: 'X4'}

130. What will be the output of the following Python code snippet?

True
False
None

Error
Correct answer
True

131. What will be the output of the following Python code?

{1: 'x', 2: 'y', 3: 'z'}

An exception is thrown

{‘x’: ‘y’: ‘z’: }

{1: ‘x’, 2: ‘y’, 3: ‘z’}
Correct answer
{1: 'x', 2: 'y', 3: 'z'}

132. What will be the output of the following Python code snippet?

P SURESH BABU, PGT-COMPUTER SCIENCE Page 129 of 352

 Counter({4: 4, 3: 3, 5: 3})
Counter({4: 3, 3: 2, 5: 2})
Counter({4: 3})

Counter({5: 3})
Correct answer
Counter({4: 3, 3: 2, 5: 2})

133. What will be the output of the following Python code snippet?

{'x': 2, 'y': [3, 4, 5]}

Exception is thrown
{‘x’: [2], ‘y’: 3}
{‘y’: [2], ‘x’: [3]}

134. What will be the output of the following Python code snippet?

None
An exception is thrown
3

135. What will be the output of the following Python code?

Syntax error

“check”
P SURESH BABU, PGT-COMPUTER SCIENCE Page 130 of 352
 {2: 'check', 3: 'check', 4: 'check'}
{2:None,3:None,4:None}
Correct answer
{2: 'check', 3: 'check', 4: 'check'}

136. What will be the output of the following Python code?

None

{ None:None, None:None, None:None}

{1:None, 2:None, 3:None}
{}
Correct answer
{}

137. If b is a dictionary, what does any(b) do?

Returns True if any key of the dictionary is true

Returns False if dictionary is empty
Returns True if all keys of the dictionary are true

Method any() doesn’t exist for dictionary

Correct answer
Returns True if any key of the dictionary is true

138. What will be the output of the following Python code snippet?

Counter({2: 15, 4: 1, 3: 1})

Counter({2: 1, 3: 1, 4: 1})
Counter({4: 2})
Counter({4: 1})
Correct answer
Counter({2: 1, 3: 1, 4: 1})

139. What will be the output of the following Python code snippet?

P SURESH BABU, PGT-COMPUTER SCIENCE Page 131 of 352

 1
2
4

140. Error, the keys can’t be a mixture of letters and numbers

141. What will be the output of the following Python code snippet?

6
5
An exception is thrown

142. What will be the output of the following Python code snippet?

method del doesn’t exist for the dictionary

del deletes the values in the dictionary

del deletes the entire dictionary
del deletes the keys in the dictionary
Correct answer
del deletes the entire dictionary
P SURESH BABU, PGT-COMPUTER SCIENCE Page 132 of 352
 143. What will be the output of the following Python code snippet?

Counter({5: 4, 4: 4, 3: 2})
{3:2}
[(5, 3), (3, 2)]
{4:3}

Correct answer
[(5, 3), (3, 2)]

144. What will be the output of the following Python code?

25
17

19
Tuples can’t be made keys of a dictionary
Correct answer
19

145. What will be the output of the following Python code?

{1: 'P', 2: 'Q', 3: 'R', 4: 'S', 5: 'T'}

P SURESH BABU, PGT-COMPUTER SCIENCE Page 133 of 352

 Method update() doesn’t exist for dictionaries
{1: ‘P’, 2: ‘Q’, 3: ‘R’}
{4: ‘S’, 5: ‘T’}

146. What will be the output of the following Python code snippet?

Error, dictionary in a dictionary can’t exist

‘Numbers’: {2: 90, 3: 9}
{'Numbers': {2: 90, 3: 9}, 'Letters': {5: 'A'}}

{‘Numbers’: {2: 90}, ‘Letters’: {5: ‘A’}}

147. What will be the output of the following Python code?

[3,4,5]
5

3
An exception is thrown

148. What will be the output of the following Python code snippet?

{2,3,4,5}
Counter({5, 4, 3, 2})

P SURESH BABU, PGT-COMPUTER SCIENCE Page 134 of 352

 Counter({5: 3, 2: 2, 4: 2, 3: 1})
{5: 3, 2: 3, 3: 4, 3: 2}
Correct answer
Counter({5: 3, 2: 2, 4: 2, 3: 1})

149. What will be the output of the following Python code?

An exception is thrown since the dictionary is empty

‘‘
1

Error
Correct answer
Error

150. What will be the output of the following Python code snippet?

{1: ‘X’, 2: ‘Y’, 3: ‘Z’}

Z
{1: 3, 2: 3, 3: 3}

No method called setdefault() exists for dictionary

Correct answer
Z

151. Which of the following is not a declaration of the dictionary?

{1: ‘A’, 2: ‘B’}

dict([[1,”A”],[2,”B”]])
{1,”A”,2”B”}
{}

Correct answer
{1,”A”,2”B”}

1. Suppose x = {“jack”:30, “henry”:35}. To obtain the number of entries in dictionary

which command do we use?

x.size()
len(x)
size(x)
P SURESH BABU, PGT-COMPUTER SCIENCE Page 135 of 352
 x.len()
Correct answer
len(x)

152. What will be the output of the following Python code?

{2: 6}
{2: 6, 4: 5}
Error, syntax error for pop() method
{2: 6, 3: 4}
Correct answer
{2: 6, 4: 5}

153. What will be the output of the following Python code snippet?

True
False
None
Error

154. Suppose x = {“jack”:30, “henry”:35}, to delete the entry for “jack” what
command do we use?

x.delete(“jack”:30)
x.delete(“jack”)
del x[“jack”]
del x(“jack”:30)

Correct answer
del x[“jack”]

155. Which of the statements about dictionary values if false?

More than one key can have the same value

The values of the dictionary can be accessed as dict[key]
Values of a dictionary must be unique
Values of a dictionary can be a mixture of letters and numbers

P SURESH BABU, PGT-COMPUTER SCIENCE Page 136 of 352

 Correct answer
Values of a dictionary must be unique

156. What will be the output of the following Python code?

['X', 'Y', 'Z']

[‘Y’,’Z’,’X’]
[3,5,7]
[7,5,3]

Correct answer
['X', 'Y', 'Z']

157. What will be the output of the following Python code snippet?

{1: 'P', 2: 'Q', 3: 'R', 4: 'S'}

Error
None

[1,2,3,4]
Correct answer
{1: 'P', 2: 'Q', 3: 'R', 4: 'S'}

158. What will be the output of the following Python code?

{1: 'P', 2: 'Q', 3: 'R'}

{1: ‘P’, 2: ‘S’, 3: ‘R’}

Error, copy() method doesn’t exist for dictionaries
“None” is printed

159. What will be the output of the following Python code snippet?

P SURESH BABU, PGT-COMPUTER SCIENCE Page 137 of 352

 True
False

Error
None
Correct answer
Error

160. What will be the output of the following Python code?

{}
False

True
An exception is thrown
Correct answer
True

161. What will be the output of the following Python code?

4
0

7
An exception is thrown
Correct answer
7

162. What will be the output of the following Python code?

P SURESH BABU, PGT-COMPUTER SCIENCE Page 138 of 352

 {0: 0, 1: 1, 2: 4, 3: 9, 4: 16}

{0: 0, 1: 1, 4: 4, 9: 9, 4: 16}
{0: 0, 1: 1, 2: 4, 3: 9, 4: 16, 5: 25}
Dictionary comprehension doesn’t exist

163. What will be the output of the following Python code?

Error, invalid syntax

P

7
6
Correct answer
6

164. Which of the following statements create a dictionary?

d = {}
d = {“jack”:30, “peter”:35}
d = {30:”jack”, 35:”peter”}

All of the mentioned

Correct answer
All of the mentioned

165. What will be the output of the following Python code?

{‘2’:2, ‘0’:0, ‘1’:1}

OrderedDict([('0', 0), ('1', 1), ('2', 2)])
An exception is thrown
''

Correct answer
OrderedDict([('0', 0), ('1', 1), ('2', 2)])

166. Which of these about a dictionary is false?

The values of a dictionary can be accessed using keys

P SURESH BABU, PGT-COMPUTER SCIENCE Page 139 of 352

 The keys of a dictionary can be accessed using values
Dictionaries aren’t ordered
Dictionaries are mutable
Correct answer
The keys of a dictionary can be accessed using values

167. What will be the output of the following Python code snippet?

3
2
1
0
Correct answer
2

168. What will be the output of the following Python code snippet?

55
50
peter
henry
Correct answer
50

169. What will be the output of the following Python code?

3
5

P SURESH BABU, PGT-COMPUTER SCIENCE Page 140 of 352

 4
Too many arguments for pop() method
Correct answer
5

170. What will be the output of the following Python code?

1
0

An exception is thrown
‘‘

If a is a dictionary with some key-value pairs, what does a.popitem() do?

Removes an arbitrary element

Removes all the key-value pairs
Removes the key-value pair for the key given as an argument
Invalid method for dictionary

Correct answer
Removes an arbitrary element

171. What will be the output of the following Python code snippet?

Error as the key-value pair of 1:’A’ is already deleted

0
2
1

172. What will be the output of the following Python code snippet?

P SURESH BABU, PGT-COMPUTER SCIENCE Page 141 of 352

 [“jack”:30, “john”:35]
['jack', 'john']
(“jack”, “john”)
(“jack”:30, “john”:35)

Correct answer
['jack', 'john']

173. What will be the output of the following Python code snippet?

“jack”, 30, 35, and “henry”

{'jack': 30, 'henry': 35}
“jack” and “henry”
30 and 35

Correct answer
{'jack': 30, 'henry': 35}

174. What will be the output of the following Python code snippet?

1X2Y3Z
123
XYZ

1:”X” 2:”Y” 3:”Z”

Correct answer
1X2Y3Z

175. Which of the following isn’t true about dictionary keys?

More than one key isn’t allowed

Keys must be immutable
Keys must be integers
When duplicate keys encountered, the last assignment wins

Correct answer
Keys must be integers

176. What will be the output of the following Python code snippet?

P SURESH BABU, PGT-COMPUTER SCIENCE Page 142 of 352

 1
4
X

Invalid syntax for get method

177. What will be the output of the following Python code?

123
‘X’ ‘Y’ ‘Z’
1 ‘X’ 2 ‘Y’ 3 ‘Z’
Error, it should be: for i in a.items():
Correct answer
123

178. What will be the output of the following Python code?

dict_items([(1, 'P'), (2, 'Q'), (3, 'R')])

Syntax error

dict_items([(1,2,3)])
dict_items([(‘P’), (‘Q’), (‘R’)])
Correct answer
dict_items([(1, 'P'), (2, 'Q'), (3, 'R')])

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 180. Let list1 = [3, 4, 5, 20, 5, 25, 1, 3], what is list1 after list1.extend([34, 5])?

[3, 4, 5, 20, 5, 25, 1, 3, 34, 5]

[1, 3, 3, 4, 5, 5, 20, 25, 34, 5]
[25, 20, 5, 5, 4, 3, 3, 1, 34, 5]

[1, 3, 4, 5, 20, 5, 25, 3, 34, 5]

[3, 1, 25, 5, 20, 5, 4, 3, 34, 5]
Correct answer
[3, 4, 5, 20, 5, 25, 1, 3, 34, 5]

181. Let list1 = [1, 3, 2, 4, 5, 2, 1, 0], What is list1[-1]?

3
5
1

0
Correct answer
0

182. Let list1 = [0.5 a for a in range(0, 4)], list1 is ________

[0, 1, 2, 3]
[0, 1, 2, 3, 4]

[0.0, 0.5, 1.0, 1.5]

[0.0, 0.5, 1.0, 1.5, 2.0]
Correct answer
[0.0, 0.5, 1.0, 1.5]

183. Let list1 = [1, 3, 2, 4, 5, 2, 1, 0], What is list1[:-1]?

0
[1, 3, 2, 4, 5, 2, 1]
[1, 3, 2, 4, 5, 2]
[1, 3, 2, 4, 5, 2, 1, 0]

Correct answer
[1, 3, 2, 4, 5, 2, 1]

184. What Will be The output Of the following code snippet?

P SURESH BABU, PGT-COMPUTER SCIENCE Page 144 of 352

 11

1 33
31
3 33
Correct answer
3 33

185. Let list1 = [1, 3, 2, 4, 5, 2, 1, 0], Which of the following is correct?

print(list1[0])
print(list1[:2])

print(list1[:-2])
print(list1[4:6])

186. list1 = [11, 2, 23] and list2 = [2, 11, 23], list1 == list2 is ________

True
False

187. "Welcome to Python".split() is ________

["Welcome", "to", "Python"]

("Welcome", "to", "Python")

{"Welcome", "to", "Python"}
"Welcome", "to", "Python"

188. Let list1 = [2, 3, 4], What is list1 2?

[2, 6, 4]
[2, 4, 3, 2, 4]
[2, 3, 4, 2, 3, 4]

[2, 3, 4, 4, 3, 2]

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 189. Let list1 = [3, 4, 5, 18, 5, 22, 1, 2], what is len(list1)?

6
7
8
5

4
Correct answer
8

190. __________ creates a list.

list1 = list()
list1 = []
list1 = list([12, 4, 4])

list1 = [12, 4, 4]
list1 = [1, "3", "red"]

191. What is the output when we execute list(“hello”)?

[‘h’, ‘e’, ‘l’, ‘l’, ‘o’]

[‘hello’]
[‘llo’]

[‘olleh’]
Correct answer
[‘h’, ‘e’, ‘l’, ‘l’, ‘o’]

192. Let list1 = [3, 4, 5, 20, 5, 25, 1, 3], what is list1 after list1.pop(1)?

[3, 4, 5, 20, 5, 25, 1, 3]

[1, 3, 3, 4, 5, 5, 20, 25]
[3, 5, 20, 5, 25, 1, 3]
[1, 3, 4, 5, 20, 5, 25]

[3, 1, 25, 5, 20, 5, 4]

Correct answer
[3, 5, 20, 5, 25, 1, 3]

193. To insert 5 to the third position in list1, use _______.

list1.insert(3, 5)
list1.insert(2, 5)
list1.add(3, 5)

P SURESH BABU, PGT-COMPUTER SCIENCE Page 146 of 352

 list1.append(3, 5)
Correct answer
list1.insert(3, 5)

194. Let list1 = [3, 4, 5, 20, 5, 25, 1, 3], what is max(list1)?

4
8
25
1
Correct answer
25

195. To shuffle list1, use _______.

list1.shuffle()

shuffle(list1)
random.shuffle(list1)
random.shuffleList(list1)
Correct answer
random.shuffle(list1)

196. Let list1 = [3, 4, 5, 20, 5, 25, 1, 3], what is list1.count(5)?

0
4
1

2
Correct answer
2

197. Let list1 = [3, 4, 5, 20, 5, 25, 1, 3], what is list1 after list1.reverse()?

[3, 4, 5, 20, 5, 25, 1, 3]

[1, 3, 3, 4, 5, 5, 20, 25]
[25, 20, 5, 5, 4, 3, 3, 1]
[1, 3, 4, 5, 20, 5, 25, 3]

[3, 1, 25, 5, 20, 5, 4, 3]

Correct answer
[3, 1, 25, 5, 20, 5, 4, 3]

198. Let list1 = [3, 4, 5, 20, 5, 25, 1, 3], what is list1 after list1.sort()?

P SURESH BABU, PGT-COMPUTER SCIENCE Page 147 of 352

 [3, 4, 5, 20, 5, 25, 1, 3]

[1, 3, 3, 4, 5, 5, 20, 25]

[25, 20, 5, 5, 4, 3, 3, 1]
[1, 3, 4, 5, 20, 5, 25, 3]
Correct answer
[1, 3, 3, 4, 5, 5, 20, 25]

199. What will be the output of the following code snippet?

[2] [3] [4]

123

[2, 3, 4]
[2] [2, 3] [2, 3, 4]
Correct answer
[2, 3, 4]

200. Let list1 = [3, 2, 5, 10, 5, 24, 1, 3], what is min(list1)?

5
4

8
25
1
Correct answer
1

201. What will be the output of the following code snippet?

[2, 3]

P SURESH BABU, PGT-COMPUTER SCIENCE Page 148 of 352

 [1, 3]
[3, 2]
[1, 2, 3]
Correct answer
[3, 2]

202. What Will be The output Of the following code snippet?

0
1
2
3

4
Correct answer
1

203. Let list1 = [3, 4, 5, 20, 5, 25, 1, 3], what is list1.index(5)?

0
4

1
2
Correct answer
2

204. What is list("pqrs")?

['p', 'q', 'r', 's']

['pq']
['rs']
['pqrs']

Correct answer
['p', 'q', 'r', 's']

P SURESH BABU, PGT-COMPUTER SCIENCE Page 149 of 352

 205. What will be the output of the following code snippet?

234561

112345
612345
12344
Correct answer
12344

206. What is list("a#b#c#d".split('#'))?

['a', 'b', 'c', 'd']

['a b c d']
['a#b#c#d']
['abcd']

Correct answer
['a', 'b', 'c', 'd']

207. To add 5 to the end of list1, use _______.

list1.add(5)

list1.append(5)
list1.addLast(5)
list1.addEnd(5)
Correct answer
list1.append(5)

208. list1 = [11, 2, 23] and list2 = [11, 2, 2], list1 < list2 is ________

True
False

209. What will be the output of the following code snippet?

P SURESH BABU, PGT-COMPUTER SCIENCE Page 150 of 352

 [1, 2, 3, 33]
[1, 2, 3]
[1, 33]

[33, 2, 3]
Correct answer
[33, 2, 3]

210. Let list1 = [0, 3, 2], what is sum(list1)?

5
4
6
2

1
Correct answer
5

211. To remove string "red" from list1, use _______.

list1.remove("red")
list1.remove(red)
list1.removeAll("red")
list1.removeOne("red")

Correct answer
list1.remove("red")

P SURESH BABU, PGT-COMPUTER SCIENCE Page 151 of 352

 212. What will be the output of the following code?

False
True

Error
None

213. What will be the output of the following code?

6
7

4
22
Correct answer
4

214. What will be the output of the following code?

b
m

d
None

215. What will be the output of the following code?

[(‘P’, 1), (‘Y’, 1), (‘T’, 1), (‘H’, 1), (‘O’, 1), (‘N’, 1)]
[(‘PYTHON’, 5)]
[('P', 1), ('Y', 1), ('T', 1), ('H', 1), ('O', 1), ('N', 1)]

Syntax error

P SURESH BABU, PGT-COMPUTER SCIENCE Page 152 of 352

 216. To which of the following the “in” operator can be used to check if an item is
in it?

Dictionary
Set

Lists
All of the above
Correct answer
All of the above

217. What will be the output of the following code?

[ 45, 6, 4,]

[45, 4]
[4, 6, 45 ]
[45, 4, 6]
Correct answer
[45, 4, 6]

218. Suppose list1 is [3, 4, 15, 15, 25, 15], what is list1.index(15)?

0
5
2

219. What will be the output of the following code?

2234336334523445455
2234334544523423345

22345233452344523455
22234522223453452345
P SURESH BABU, PGT-COMPUTER SCIENCE Page 153 of 352
 Correct answer
22345233452344523455

220. What will be the output of the following code?

2
3
4
Correct answer
2

221. What will be the output of the following code?

[5,8]
[]

[5, 7]
Invalid arguments for filter function
Correct answer
[5, 7]

222. What will be the output of the following code?

[12,48,15, [77]40,60]
[12, 48, 15, [77], 40, 60]

[12, 48, 15, 77,[ 40, 60]]

[12,48,15,77,[ 40, 60]]

223. What will be the output of the following code?

P SURESH BABU, PGT-COMPUTER SCIENCE Page 154 of 352
 5
1

4
8
Correct answer
5

224. What will be the output of the following code?

None [4, 6, 8]

[4,6,8] None
[1, 2, 3] [4,5,6]
None [1, 2, 3]

225. What will be the output of the following code?

Option 1

Option 2

Option 3

P SURESH BABU, PGT-COMPUTER SCIENCE Page 155 of 352

 Syntax error
Correct answer
Option 2

226. What will be the output of the following code?

8
4
6
Correct answer
8

227. What will be the output of the following code?

Option 1

Option 2

Option 3

Option 4
Correct answer
Option 3

228. What will be the output of the following code?

P SURESH BABU, PGT-COMPUTER SCIENCE Page 156 of 352

 2

3
6
7

229. What will be the output of the following code?

['2, 4, 6']
[2] [ 2, 4] [2, 4, 6]

[2, 4, 6]
[2] [4] [6]
Correct answer
[2, 4, 6]

230. What will be the output of the following code?

14
[2,3,5,7]

5
[2, 5, 9, 14]
Correct answer
[2, 5, 9, 14]

231. How many elements are in a?

P SURESH BABU, PGT-COMPUTER SCIENCE Page 157 of 352

 [[0, 1], [0, 2], [2, 0], [0, 1]]
[[0, 0], [0, 1], [1, 0], [1, 1]]
[[0, 10], [0, 2], [0, 3], [0, 4]]
None

Correct answer
[[0, 0], [0, 1], [1, 0], [1, 1]]

232. What will be the output of the following code?

The program prints two rows 3 5 6 2 followed by 44 7 2 3

The program prints on row 3 6 5 2 44 7 3 2
The program prints two rows 2 4 5 6 followed by 2 3 7 44

The program prints two rows 3 6 5 2 followed by 44 6 2 3

233. What will be the output of the following Python code?

5
3

4
0
Correct answer
4

234. What will be the output of the following code?

P SURESH BABU, PGT-COMPUTER SCIENCE Page 158 of 352

 Return a list containing every third item from L starting at index 0
Return an empty list

Return a list containing every third index from L starting at index 0

Return a list containing the items from L starting from index 0, omitting every third
item
Correct answer
Return a list containing every third item from L starting at index 0

235. What will be the output of the following code?

['Monkey', 'Fox', 'Deer']

['Monkey', 'Fox', 'Lion']
['Monkey', 'Fox', 'Tiger']

['Monkey', 'Tiger', 'Lion']

Correct answer
['Monkey', 'Fox', 'Lion']

236. What will be the output of the following code?

Option 1

Option 2

P SURESH BABU, PGT-COMPUTER SCIENCE Page 159 of 352

 Option 3
Syntax error
Correct answer
Option 3

237. What will be the output of the following code?

True

False
Correct answer
False

238. What will be the output of the following code?

[1, 4, 3]
[2, 4, 6, 5]

[ 2, 4, 5]
[ 2, 4, 6]
Correct answer
[ 2, 4, 5]

239. What will be the output of the following code?

2
5
4
6
Correct answer
6

240. What will be the output of the following code?

P SURESH BABU, PGT-COMPUTER SCIENCE Page 160 of 352

 [20,33,60,[90]]
[20,33,60,[80]]
[20, 33, 60, [80]]
[20, 33, 60, [90]]

Correct answer
[20, 33, 60, [80]]

241. What will be the output of the following code?

Option 1

Option 2

Option 3

Option 4
Correct answer
Option 4

242. What will be the output of the following code?

[2] [3]

P SURESH BABU, PGT-COMPUTER SCIENCE Page 161 of 352

 [49] [50]
[[2]] [[3]]
Syntax error

243. What will be the output of the following code?

[‘Mango’, ‘Nail’, ‘Ox’]

['Ox', 'Nail', 'Mango']
['Ox', 'Mango', 'Nail' ]

Invalid syntax for sort()

Correct answer
['Ox', 'Nail', 'Mango']

244. What will be the output of the following code?

['mango', 'berry', 'apple', 'banana', 'cherry']

['mango', 'berry', 'banana', 'cherry']
['mango', 'apple', 'berry', 'banana', 'cherry']

['mango', 'apple', 'berry', 'cherry' 'banana' ]

Correct answer
['mango', 'berry', 'apple', 'banana', 'cherry']

245. What will be the output of the following code?

2345
5678

2 3 9 15
3 6 10 14
Correct answer

P SURESH BABU, PGT-COMPUTER SCIENCE Page 162 of 352

 3 6 10 14

246. What will be the output of the following code?

[20,33,60,[90]]
[20, 33, 60, [88]]
[20, 33, 60, [90]]

[20,33,60,[88]]

247. What will be the output of the following code?

A
Dhiman
Error
n

248. What will be the output of the following code?

561
12
8
Syntax error

Correct answer
8

249. Which of the following commands will create a list?

list1 = []
list1 = list()
list1 = list([1, 2, 3])
all of the mentioned

P SURESH BABU, PGT-COMPUTER SCIENCE Page 163 of 352

 250. What will be the output of the following code?

Option 1

Option 2

Option 3

Option 4
Correct answer
Option 1

251. What will be the output of the following code?

Option 1

Option 2

Option 3

Syntax error

P SURESH BABU, PGT-COMPUTER SCIENCE Page 164 of 352

 252. What will be the output of the following code?

1: 2: 3:
Exception is thrown

One Two Three

0: One 1: Two 2: Three
Correct answer
0: One 1: Two 2: Three

253. What will be the output of the following code?

[2, 5]
[5, 2]
[3, 5]

[5, 3]

254. What will be the output of the following code?

Syntax error
[[5], [], []]

[[5], [5], [5]]

[[],5, [], []]
Correct answer
[[5], [5], [5]]

255. What will be the output of the following code?

P SURESH BABU, PGT-COMPUTER SCIENCE Page 165 of 352

 1
3

2
None
Correct answer
1

256. What will be the output of the following code?

[4, 8, 9, 7, 2, 3]
Syntax error
[4,[8,9],5,2,3]

[4,5,6,7,8]
Correct answer
[4, 8, 9, 7, 2, 3]

257. What will be the output of the following code?

66234
62345
34562

34566
Correct answer
34566

258. What will be the output of the following code?

14
[2,5,7,9]
[2, 5, 9, 14]
[2,3,9,14]

P SURESH BABU, PGT-COMPUTER SCIENCE Page 166 of 352

 Correct answer
[2, 5, 9, 14]

259. What is the maximum number of elements List can contain in Python?

10 million items
10 million on 32-bit system and 20 million on 64-bit system
There is no limit
20 million items
Another limit

Correct answer
There is no limit

260. What will be the output of the following code?

("Welcome", "to", "Python")

{"Welcome", "to", "Python"}
['Welcome', 'to', 'Python']
"Welcome", "to", "Python"

Correct answer
['Welcome', 'to', 'Python']

261. What will be the output of the following code?

4
5
6
Correct answer
5

P SURESH BABU, PGT-COMPUTER SCIENCE Page 167 of 352

 262. What will be the output of the following code?

6
44
7
Correct answer
44

263. What will be the output of the following code?

[[4, 2.5], [2, 3], [0.7, 0.7]]

[[0.7, 0.7], [2, 3], [4, 2.5]]
[[0.7, 0.7], [4, 2.5], [2, 3]]

[[2, 3], [4, 2.5], [0.7, 0.7]]

Correct answer
[[0.7, 0.7], [2, 3], [4, 2.5]]

264. Suppose list1 is [4, 2, 2, 4, 5, 2, 1, 0], Which of the following is correct syntax
for slicing operation?

print(list1[0])
print(list1[:2])
print(list1[:-2])
all of the mentioned

265. What will be the output of the following code?

P SURESH BABU, PGT-COMPUTER SCIENCE Page 168 of 352

 Error
[2,5]
[7]
7

266. What will be the output of the following code?

10
12
2
8

Correct answer
2

267. Suppose list1 = [0.5 x for x in range(0, 5)], list1 is:

[1.0, 0.5, 0.0, 1.5, 2.0]

[0.0, 0.5, 1.0, 1.5, 2.0]
[2.0, 1.5, 1.0, 0.5, 0.0]
[0.1, 0.2, 0.3, 0.4, 0.5]

Correct answer
[0.0, 0.5, 1.0, 1.5, 2.0]

268. What will be the output of the following code?

[[3],[8]]
[2, 3, 4, 5]
Error

P SURESH BABU, PGT-COMPUTER SCIENCE Page 169 of 352

 [14]

Correct answer
[2, 3, 4, 5]

269. What will be the output of the following code?

3 44
4 44

5 44
67

270. What will be the output of the following code?

[[1, 2, 3], [4, 5, 6], [7, 8, 9]]

[[0, 2, 3], [1, 3, 4], [2, 4, 5]]
[1, 2, 3, 4, 5, 6, 7, 8, 9]
[0, 1, 2, 1, 2, 3, 2, 3, 4]

Correct answer
[[0, 2, 3], [1, 3, 4], [2, 4, 5]]

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 272. Which of the following is a Python tuple?

[1, 2, 3]
(1, 2, 3)
{1, 2, 3}

{}
Correct answer
(1, 2, 3)

273. What is the data type of (1)?

Tuple
Integer
List
Both tuple and integer

Correct answer
Integer

274. If x=(1,2,3,4), x[1:-1] is _________

Error, tuple slicing doesn’t exist

[2,3]
(2,3,4)
(2,3)

275. What will be the output of the following Python code?

Error, tuples are immutable

Option 2
((‘check’,)’check’,)

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 Option 4
Correct answer
Option 2

276. What will be the output of the following Python code?

(min - 5)
5
Error

None of these above

Correct answer
5

277. What will be the output of the following Python code?

40
45
“jimmy”

“jack”
Correct answer
45

278. What will be the output of the following Python code?

(2,3,4,6)
(3,4,2,6)

None
Error, tuple has no attribute sort
Correct answer
Error, tuple has no attribute sort

279. What will be the output of the following Python code?

P SURESH BABU, PGT-COMPUTER SCIENCE Page 172 of 352

 (4,5)

(2, 3, 4, 5)
Error as tuples are immutable
None
Correct answer
(2, 3, 4, 5)

280. What will be the output of the following Python code?

5
2
3
None

Correct answer
3

281. What will be the output of the following Python code?

[2, 3, 9]
[2, 3, 5, 4, 8, 9]
(2, 4, 8)

[2, 5, 8]
Correct answer
[2, 5, 8]

282. What will be the output of the following Python code?

(False, False, False)

False
True

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 None
Correct answer
False

283. Is the following Python code valid?

No because tuple is immutable

Yes, first element in the tuple is deleted

Yes, the entire tuple is deleted

No, invalid syntax for del method
Correct answer
Yes, the entire tuple is deleted

284. What will be the output of the following Python code?

Now, a=(1,2,4)

Now, a=(1,3,4)
Now a=(3,4)
Error as tuple is immutable
Correct answer
Error as tuple is immutable

285. Is the following Python code valid?

Yes, 1 is printed
Yes, [1,2,3,4] is printed

No, too many values to unpack

Yes, (1,2,3,4) is printed
Correct answer
Yes, (1,2,3,4) is printed

286. What will be the output of the following Python code?

P SURESH BABU, PGT-COMPUTER SCIENCE Page 174 of 352

 (1, 2, 4)

(2, 4, 3)
(3, 5, 4)
(1, 2)
Correct answer
(3, 5, 4)

287. What will be the output of the following Python code?

True

(False, True, False)

False
None

288. What will be the output of the following Python code?

g
a
None
Correct answer
g

289. What will be the output of the following Python code?

g
a

f
None
Correct answer
f

290. What will be the output of the following Python code?

P SURESH BABU, PGT-COMPUTER SCIENCE Page 175 of 352

 False

True
Error, < operator is not valid for tuples
Error, < operator is valid for tuples but not if there are sub-tuples

291. What will be the output of the following Python code?

Too many arguments for sum() method

The method sum() doesn’t exist for tuples

12
9
Correct answer
9

292. Tuples can’t be made keys of a dictionary.

True

False
Correct answer
False

293. What will be the output of the following Python code?

True
False
Error
None

294. What will be the output of the following Python code?

P SURESH BABU, PGT-COMPUTER SCIENCE Page 176 of 352

 [(2, 3), (3, 4), (4, 9)]
[(2,3),(3,2),(4,9)]
Error because tuples are immutable
Error, tuple has no sort attribute
Correct answer
[(2, 3), (3, 4), (4, 9)]

295. Suppose p = (1, 2, 4, 3), which of the following Python code is incorrect?

print(p[3])
p[3] = 45
print(max(p))

print(len(p))
Correct answer
p[3] = 45

296. What will be the output of the following Python code?

(max - 75)

75
Error
None of these above
Correct answer
75

297. What will be the output of the following Python code?

2
5
Error
Correct answer
Error

298. What will be the output of the following Python code?

P SURESH BABU, PGT-COMPUTER SCIENCE Page 177 of 352

 Option 1

Option 2

Option 3
None of these above

299. What will be the output of the following Python code?

30
24

51
12
Correct answer
51

300. What will be the output of the following Python code?

(apple, mango)

('apple', 'mango')
('apple''mango')
P SURESH BABU, PGT-COMPUTER SCIENCE Page 178 of 352
 None
Correct answer
('apple', 'mango')

301. What will be the output of the following Python code?

Invalid syntax for slicing

[0,2]

(0, 1)
(0, 2)
Correct answer
(0, 2)

302. What will be the output of the following Python code?

("Yellow", "Green", "Blue")

'tuple' object does not support item assignment
("Red", "Green", "Blue")

None
Correct answer
'tuple' object does not support item assignment

303. What will be the output of the following Python code?

True
False
Error
None

Correct answer
False

304. What will be the output of the following Python code?

P SURESH BABU, PGT-COMPUTER SCIENCE Page 179 of 352

 x(i=2, j=5)
obj(i=2, j=5)

(2,5)
An exception is thrown
Correct answer
x(i=2, j=5)

305. Is the following Python code valid?

Yes, x=(1,2,3,4) and y=(1,2,3,4)

Yes, a=(2,3,4) and b=(1,2,3,4)
No because tuples are immutable

No because wrong syntax for update() method

306. What type of data is: x=[(1,1),(2,4),(3,9)]?

Array of tuples
List of tuples
Tuples of lists

Invalid type
Correct answer
List of tuples

307. Is the following Python code valid?

Yes, z will be ((0, 1, 2),(‘X’,’Y’,’Z’))

Yes, z will be ((1,2,3),(‘X’,’Y’,’Z’))

No because tuples are immutable

No because the syntax for zip function isn’t valid

P SURESH BABU, PGT-COMPUTER SCIENCE Page 180 of 352

 Correct answer
Yes, z will be ((0, 1, 2),(‘X’,’Y’,’Z’))

308. What will be the output of the following Python code?

(2, 3, 2, 3)
[2, 3, 2, 3]
(2, 2, 3, 3)

[2, 2, 3, 3]
Correct answer
(2, 3, 2, 3)

309. What will be the output of the following Python code?

(1, 2)
(1, 2, 4)
(3, 4)

(2, 4, 3)

310. What will be the output of the following Python code?

(‘Check’,’Check’,’Check’)
Operator not valid for tuples
(‘CheckCheckCheck’)
Syntax error

Correct answer
(‘CheckCheckCheck’)

311. What will be the output of the following Python code?

(6,8)
Invalid syntax

P SURESH BABU, PGT-COMPUTER SCIENCE Page 181 of 352

 (8,6)
Nothing is printed
Correct answer
(8,6)

P SURESH BABU, PGT-COMPUTER SCIENCE Page 182 of 352

MCQ on List in Python
Q1. Which of the following statement will create list?
a. L1=list( )
b. L1=[1,2,3,4]
c. Both of the above
d. None of the above

Ans. c. Both of the above

Q2. Write the output of the following code :
list(“welcome”)
a. [‘w’, ‘e’, ‘l’, ‘c’, ‘o’, ‘m’, ‘e’]
b. (‘w’, ‘e’, ‘l’, ‘c’, ‘o’, ‘m’, ‘e’)
c. [‘welcome’]
d. None of the above

Ans. a. [‘w’, ‘e’, ‘l’, ‘c’, ‘o’, ‘m’, ‘e’]

Q3. Write the output of the following code :
>>> L=[‘w’,’e’,’l’,’c’,’o’,’m’,’e’]
>>> print(len(L))
a. 7
b. 8
c. 9
d. None

Ans. a. 7
Q4. Write the output of the following code :
>>> L=[“Amit”,”Anita”,”Zee”,”Longest Word”]
>>> print(max(L))
a. Zee
b. Longest Word
c. Error
d. None of the above

Ans. a. Zee
Q5. Write the output of the following code :
>>> L=[“Amit”,”Anita”,”Zee”,”Longest Word”,123]
>>> print(max(L))
a. Longest Word
b. Zee
c. Amit
d. Error

Ans. d. Error

Q6. Write the output of the following code :

>>>L=[1,5,9]
>>>print(sum(L),max(L),min(L))

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a. 15 9 1
b. Error
c. Max and Min are only for String Value
d. None of the above

Ans. a. 15 9 1
Q7. Do we have any inbuilt function for shuffling the values of List. :
a. True
b. False

Ans. a. True
Q8. Write the output of the following code :
>>>L=[1,2,3,4,5,[6,7,8]]
>>>print(L[5])
a. [6, 7, 8]
b. 6, 7, 8
c. Error
d. 6

Ans. a. [6, 7, 8]
Q9. Write the output of the following code :
L=list(“www.csiplearninghub.com”)
print(L[20 : -1])
a. [‘c’ , ‘o’]
b. [‘c’ , ‘o’ , ‘m’]
c. (com)
d. Error

Ans. a. [‘c’ , ‘o’]

Q10. Write the output of the following code :
>>>L=list(“www.csiplearninghub.com”)
>>>print(L[20 : 0])
a. Error
b. No Value
c. None
d. [ ]

Ans. d. [ ]

Q11. Write the output of the following code :

>>>L=[“Amit”,”Sumit”,”Naina”]
>>>print(L[-1][-1])
a. [Naina]
b. [a]
c. a
d. None of the above

P SURESH BABU, PGT-COMPUTER SCIENCE Page 184 of 352

Ans. c. a
Q12. Write the output of the following code :
>>>L=[“Amit”,”Sumit”,”Naina”]
>>>print(L[1:-1])
a. [‘Sumit’]
b. [a]
c. [Naina]
d. None of the above

Ans. a. [‘Sumit’]
Q13. Write the output of the following code :
L=[“Amit”,”Sumit”,”Naina”]
print(L*2)
a. [‘Amit’, ‘Sumit’, ‘Naina’, ‘Amit’, ‘Sumit’, ‘Naina’]
b. [“Amit” , “Sumit” , “Naina”]
c. Error
d. None of the above

Ans. a. [‘Amit’, ‘Sumit’, ‘Naina’, ‘Amit’, ‘Sumit’, ‘Naina’]

Q14. Write the output of the following code :
L=[“Amit”,”Sumit”,”Naina”]
print(L**2)
a. Error
b. [“Amit”,”Sumit”,”Naina”][“Amit”,”Sumit”,”Naina”]
c. [“Amit”,”Sumit”,”Naina”]
d. [“Amit”,”Sumit”,”Naina”,”Amit”,”Sumit”,”Naina”]

Ans. a. Error
Q15. Write the output of the following code :
L=[0.5 * x for x in range(4)]
print(L)
a. [0.0, 0.5, 1.0, 1.5]
b. (0,.5, 1, 1.5)
c. [0.0, 0.5, 1.0, 1.5, 2.0]
d. Error

Ans. a. [0.0, 0.5, 1.0, 1.5]

Q16. Write the output of the following code :

L=[‘a’ * x for x in range(4)]
print(L)
a. [‘ ‘ , ‘a’ , ‘aa’ , ‘aaa’]
b. [‘a’, ‘aa’, ‘aaa’]
c. Error
d. None of the above

Ans. a. [‘ ‘ , ‘a’ , ‘aa’ , ‘aaa’]

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Q17. Write the output of the following code :
L= [1*x for x in range(10,1,-4)]
print(L)
a. [10, 6, 2]
b. [10, 7, 4]
c. Error
d. None of the above

Ans. a. [10, 6, 2]

Q18. Write the output of the following code :

L=[1,2,3,4,5]
for i in L:
print(i,end=” “)
i=i+1
a. 1, 2, 3, 4, 5
b. 1, 3, 5
c. Error
d. None of the above

Ans. a. 1, 2, 3, 4, 5
Q19. Write the output of the following code :
L=[“Amit”,”Sumit”,”Naina”]
L1=[“Sunil”]
print(L + L1)
a. [‘Amit’ , ‘Sumit’ , ‘Naina’ , [‘Sunil’]]
b. [‘Amit’ , ‘Sumit’ , ‘Naina’ , ‘Sunil’]
c. List can not concatenate
d. None of the above

Ans. b. [‘Amit’ , ‘Sumit’ , ‘Naina’ , ‘Sunil’]

Q20. Which command is used to add an element in List named L1
a. L1.add(4)
b. L1.append(4)
c. L1.new(4)
d. None of the above

Ans. b. L1.append(4)

Q21. Write the output of the following :

L = “123456”
L = list(L)
print(type(L[0]))
a. class ‘str’
b. class ‘int’
c. 1
d. Error

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Ans. a. class ‘str’
Q22. Write the output of the following:
T=(1,2,3,4,5.5)
L = list(T)
print(L[3]*2.5)
a. Error
b. 10
c. 10.0
d. 4

Ans. c. 10.0
Q23. Index value in list and string start from 0(T/F)
a. True
b. False

Ans. a. True
Q24. Write the output of the following:
T=(1,2,3,4,5.5)
L = list(T)
print(L*2)
a. [2, 4, 6, 8, 11]
b. [1, 2, 3, 4, 5.5, 1, 2, 3, 4, 5.5]
c. Error
d. None of the above

Ans. b. [1, 2, 3, 4, 5.5, 1, 2, 3, 4, 5.5]

Q25. Write the output of the following:
T = [1,2,3,4]
T1 = [3,4,5,6]
T2 = T + T1
print(T2)
a. [1, 2, 3, 4, 5, 6]
b. [1, 2, 3, 4, 3, 4, 5, 6]
c. [4, 6, 8, 10]
d. Error

Ans. b. [1, 2, 3, 4, 3, 4, 5, 6]

Q26. Write the output of the following:

T = [1,2,3,4]
T1 = [3,4,5,6]
T2 = T.append(T1)
print(T2)
a. [1, 2, 3, 4, [3, 4, 5, 6]]
b. [1, 2, 3, 4, 3, 4, 5, 6]
c. None

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d. None of the above

Ans. c. None
Q27. del statement can delete the following from the List?
a. Single Element
b. Multiple Elements
c. All elements along with List object
d. All of the above

Ans. d. All of the above

Q28. Write the output of the following:
T = [1,2,3,4]
T1=T
T[0] = “A”
print(T)
print(T1)
a.
['A', 2, 3, 4]
[1, 2, 3, 4]
b.
['A', 2, 3, 4]
['A', 2, 3, 4]
c.
[1, 2, 3, 4]
[1, 2, 3, 4]
d. Error

Ans. b.
['A', 2, 3, 4]
['A', 2, 3, 4]
Q29. What type of error is returned by the following statement?
T = [1,2,3,4]
print(T.index(9))
a. IndexError
b. TypeError
c. ValueError
d. None of the above

Ans. c. ValueError
Q30. Write the output of the following.
T = [1,2,3,4]
T1=[5,6,7]
L=T.append(T1)
print(L)
a. None
b. [1, 2, 3, 4, [5, 6, 7]]
c. [ ]

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d. Error

Ans. a. None

Q31. Write the output of the following:

L=["Amit","Sumit","Naina"]
L1=["Sunil"]
print(L + L1)
a. [“Amit” , “Sumit” , “Naina” , [“Sunil”] ]
b. [‘Amit’ , ‘Sumit’ , ‘Naina’ , ‘Sunil’]
c. Error
d. [‘Amit’ , ‘Sumit’ , ‘Naina’ , ‘Sunil’][‘Amit’ , ‘Sumit’ , ‘Naina’ , ‘Sunil’]

Ans. b. [‘Amit’ , ‘Sumit’ , ‘Naina’ , ‘Sunil’]

Q32. Result of list slice is also a list?(T/F)
a. True
b. False

Ans. a. True
Q33. What we call the operation which is used to extract particular range from a sequence.
a. Slicing
b. range
c. Indexing
d. Replication

Ans. a. Slicing
Q34. Index of last element in list is n-1, where n is total number of elements.(T/F)
a. True
b. False

Ans. a. True
Q35. Write the output of the following :
L=[2 * x for x in range(3,14,3)]
print(L)
a. [6, 12, 18, 24]
b. [6, 12, 18]
c. [6, 12, 18, 24, 30]
d. Error

Ans. a. [6, 12, 18, 24]

Q36. Write the output of the following :

L=["Amit","Sumit","Naina"]
L1=["Sumit"]
print(L - L1)
a. [“Amit” , “Naina”]
b. [“Amit” , “Naina”, “Sumit”]

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c. Show Error
d. None of the above

Ans. c. Show Error

Q37. Write the output of the following:
a. Error
b. 14 + 9 -1
c. 23
d. 24

Ans. c. 23
Q38. Which mathematical operator is used for repetition?
a. *
b. **
c. +
d. //

Ans. a. *
Q39. Following two print statement will return same result.(T/F)
L1 = [1, 5, 9]
L2 = [2, 3, 4]
print(L1 + L1)
print(L1 * 2)
a. True
b. False

Ans. a. True
Q40. Which of the following is not list operation?
a. Indexing
b. Slicing
c. Dividing
d. Concatenation

Ans. c. Dividing

Q41. Which of the following is true about List data type in Python?
a. List is a Sequence data type
b. List is mutable
c. List can have elements of different data type
d. All of the above

Ans. d. All of the above

Q42. Identify data type of ‘T’ in following line of Code:
T = list(tuple([1,2,3]))
print(type(T))
a. Tuple
b. List

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c. Nested List
d. None of the above

Ans. b. List
Q43. List and String are different
a. in reference to their indexing
b. in reference to data type of elements they contain
c. None of the above
d. Both of the above

Ans. b. in reference to data type of elements they contain

Q44. List can have elements of _____________ data types.
a. Same
b. Different
c. Both of the above
d. None of the above

Ans. b. Different
Q45. Write the output of the following:
L =[['Physics',101],['Chemistry',202], ['Maths',303],45, 6, 'j']
print(len(L))
a. 3
b. 4
c. 5
d. 6

Ans. d. 6

Q46. Write the output of the following :

L = [1,2,3,4,5,6,7,8,9,10]
print(L[L[3]])
a. 3
b. 4
c. 5
d. 6

Ans. c. 5
Q47. Which of the following statement will return first element from right of list ‘L’?
a. L[0]
b. L[-1]
c. L[1]
d. None of the Above

Ans. b. L[-1]
Q48. Write the output of the following:
L = [1,2,3,4,5,6,7,8,9,10]
print(L[len(L) - 1])

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a. 9
b. 1
c. Error
d. None of the above

Ans. d. None of the above

Q49. We can concatenate only two list at one time.(T/F)
a. True
b. False

Ans. b. False
Q50. The following statements is showing ______ operation in List.
L1 = [1,2,3,4]
L2 = [1,2,3,4]
L = L1 + L2
a. Replication of List
b. Concatenation of String
c. Indexing of String
d. None of the above

Ans. b. Concatenation of String

Q51. Which mathematical operator is used to concatenate list?

a. +
b. //
c. **
d. None of the above

Ans. a. +
Q52. Write the output of the following :
L1 = [1,2,3]
L2=[5,6,7]
L1 + L2
print(L1)
a. [1, 2, 3, 4, 5, 6, 7]
b. [1, 2, 3, 5, 6, 7]
c. [1, 2, 3]
d. None of the above

Ans.c. [1, 2, 3]
Q53. If we try to concatenate a list with elements of some other data type, _____________
occurs.
a. SyntaxError
b. SyntaxError
c. TypeError
d. None of the above

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Ans. c. TypeError
Q54. Name the operator which is used in the following print statement.
a. Concatenation
b. Repetition
c. Membership
d. None of the above

Ans. b. Repetition
Q55. print(L1 + L1) and print(L1 * 2) will produce the same result.(L1 is a List)(T/F)
a. True
b. False

Ans. a. True

Q56. Which operator helps to check whether an element is present in list or not?
a. +
b. in
c. **
d. None of the above

Ans. b. in
Q57. Write the output of the following:
print(1 in [[1],2,3])
a. True
b. False
c. Error
d. None of the above

Ans. b. False
Q58. Which operation of List is shown in following lines?
L1 = [1, 2, 3, 4, 5, 6, 7, 8]
print(L1[3 : 6])
a. Concatenation
b. Repetition
c. Slicing
d. None of the above

Ans. c. Slicing
Q59. Which of the following statement will reverse the list L1?
a. L1[ : : 1]
b. L1[-1 : : -1]
c. L1[: : -1]
d. None of the above

Ans. c. L1[: : -1]

Q60. Traversing a list can be done with the help of _________
a. loop

P SURESH BABU, PGT-COMPUTER SCIENCE Page 193 of 352

b. if
c. if–elif
d. None of the above

Ans. a. loop

Q61. Write the output of the following:

print(len(tuple[1]))
a. 1
b. 0
c. Error
d. None of the above

Ans. c. Error
Q62. Write the output of the following :
L = [[1,2,3,5,6,7,[1,[2,3]]]]
print(len(L))
a. 4
b. 3
c. 2
d. 1

Ans. d. 1
Q63. Which function returns the length of a list?
a. Len( )
b. length( )
c. len( )
d. Length( )

Ans. c. len( )
Q64. Write the output of the following :
D = list[ ]
print(len(D))
a. 0
b. 1
c. SyntaxError
d. ValueError

Ans. c. SyntaxError
Q65. remove( ) function removes the _______________ occurrences of an element from the
list
a. all
b. first
c. last
d. None of the above

Ans. b. first

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Q66. sort () function Sorts the elements of the given list in-place(T/F)
a. True
b. False

Ans. a. True
Q67. Which of the following function creates the new list?
a. sort( )
b. sorted( )
c. reverse( )
d. All of the above

Ans. b. sorted( )
Q68. Write the output of the following :
D = [1,2,3]
D1 = D
D.append(4)
print(D1)
a. [1, 2, 3, 4]
b. [1, 2, 3]
c. Error
d. None of the above

Ans. a. [1, 2, 3, 4]
Q69. Fill in the blanks with same word in both places
>>> import __________
>>> list1 = [1,2,3,4,5]
>>> list2 = _________copy(list1)
>>> list2
a. copy
b. math
c. pickle
d. None of the above

Ans. a. copy
Q70. Write the output of the following :
def listchange(L):
L.append(45)
return
L1 = [1, 2, 3, 4]
listchange(L1)
print(L1)
a. [1, 2, 3, 4]
b. [1, 2, 3, 45]
c. [1, 2, 3, 4, 45]
d. None of the above

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Ans. c. [1, 2, 3, 4, 45]

Q71. Write the output of the following:

print([] * 2 )
a. [ ]
b. 0
c. Error
d. None of the above

Ans. a. [ ]
Q72. Which of the following will give output as [21,2,9,7] ? if list L = [1,21,4,2,5,9,6,7]
a. print(L[1 : 8 : 2])
b. print(L[1 : : 2])
c. Both of the above
d. None of the above

Ans. print(L[1 : : 2])

Q73. Write the output of the following :
L = ['Amit', 'anita', 'Sumant', 'Zaid']
print(max(L))
a. Zaid
b. Sumant
c. anita
d. Amit

Ans. c. anita
Q74. Write the output of the following:
L=[13, 12, 15, 27, 3, 46]
list1.pop(3)
print(L)
a. [13,12,15, 27, 46]
b. [13, 12, 15, 3, 46]
c. [13, 12, 15, 27, 3]
d. None of the above

Ans. b. [13, 12, 15, 3, 46]

Q75. Write the output of the following:
list1=[3,2,5,7,3,6]
list1.remove(3)
print(sum(list1))
a. 23
b. 20
c. 19
d. None of the above

Ans. a. 23

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Q76. Write the output of the following
list1=[3,2,5,7,3,6]
list1.insert(6,3)
print(list1)
a. [3, 2, 5, 6, 7, 3, 6]
b. [3, 2, 5, 6, 3, 6]
c. [3, 2, 5, 7, 3, 6, 3]
d. None of the above

Ans. c. [3, 2, 5, 7, 3, 6, 3]
Q77. Write the output of the following
L = [14, 2, 3, 16, 15]
L[1:4] = [5, 4, 8]
print(L)
a. [14, 5, 4, 8, 15]
b. [14, 5, 4, 8, 2, 3, 16, 15]
c. Error
d. None of the above

Ans. a. [14, 5, 4, 8, 15]

Q78. Write the output of the following
L = ["Amit", 'Sumit', 'Ravi']
print(L[0][1])
a. A
b. Amit
c. S
d. m

Ans.d. m
Q79. Write the output of the following
L = ["Amit", 'Sumit', 'Ravi']
print("@".join(L))
a. @Amit
b. Amit@Sumit@Ravi
c. Amit@Sumit@Ravi@
d. None of the above

Ans. b. Amit@Sumit@Ravi
Q80. Write the output of the following:
L = ['A', 'S', 'R']
L = L + L*2
print(L)
a. [‘A’, ‘S’, ‘R’, ‘2A’, ‘2S’, ‘2R’]
b. [‘A’, ‘S’, ‘R’, ‘A’, ‘S’, ‘R’, ‘A’, ‘S’, ‘R’]
c. [‘A’, ‘S’, ‘R’]
d. Error

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Ans. b. [‘A’, ‘S’, ‘R’, ‘A’, ‘S’, ‘R’, ‘A’, ‘S’, ‘R’]

Q81. Write the output of the following :

L = [[5, 7, 9, 1 ], [12, 23, 4, 9]]
for r in L:
r.reverse( )
for e in r:
print(e, end = ” “)
a. 1 9 7 5 9 4 23 12
b.
1975
9 4 23 12
c.
Error
d. None of the above

Ans. a. 1 9 7 5 9 4 23 12
Q82. Write the output of the following:
L = [[5, 7, 9, 1 ], [12, 23, 4, 9]]
for r in L:
r.sort()
for e in r:
print(e, end = ” “)
a. 1 5 7 9 4 9 12 23
b. 1 4 5 7 9 9 12 23
c. 9 7 5 1 23 12 9 4
d. None of the above

Ans. a. 1 5 7 9 4 9 12 23
Q83. How many elements will be there in list ‘L’
L = [[p, q] for p in (0, 4) for q in (0, 4)]
a. 2
b. 4
c. 8
d. 16

Ans. b. 4
Q84. Write the output of the following:
L = [[p, q] for p in (0, 4) for q in (0, 4)]
print(L[0])
a. [0]
b. [0, 4]
c. [4, 4]
d. [0, 0]

Ans. d. [0, 0]
Q85. Write the output of the following:

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L = [23, 45, 65, 32, 3]
L.insert(L[4], 'Monitor')
print(L)
a. [23, 45, 65, ‘Monitor’, 32, 3]
b. [23, 45, 65, 32, ‘Monitor’, 3]
c. [23, 45, 65, 32, 3, ‘Monitor’]
d. None of the above

Ans. a. [23, 45, 65, ‘Monitor’, 32, 3]

Q86. Which statement will give the same output?

list1 = [1, 2, 3, 4]
list2 = [5, 6, 7, 8]
a. print(len(list1 + list2))
b. print(len(list1) + len (list2))
c. print(list2[3])
d. All of the above

Ans. d. All of the above

Q87. Write the output of the following:
L = [11, 21, 31, 41]
L.append([51,62,73,84])
print(len(L))
a. 8
b. 5
c. 4
d. None of the above

Ans. b. 5
Q88. Write the output of the following :
L = [11, 21, 31, 41]
L.extend([51,62,73,84])
print(len(L))
a. 8
b. 4
c. 5
d. Error

Ans. a. 8
Q89. Write the output of the following
L1 = ['C++', 'C-Sharp', 'Visual Basic']
L2 = [name.upper() for name in L1]
L3 = [name for name in L1]
if(L2[2][0] == L3[2][0]):
print("YES")
else:
print("N0")

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a. No
b. Yes
c. Error
d. None of the above

Ans. b. Yes
Q90. Write the output of the following :
L = [11, 22, 33, 44, 55, 66]
for i in range(1, 6):
L[i - 1] = L[i]*2
for i in range(0, 4):
print(L[i], end = " ")
a. 44 66 88 110
b. 22 33 44 55
c. 11 22 33 44
d. Error

Ans. a. 44 66 88 110

Q91. Write the output of the following :

L= [1,2,3,4,5]
m = [m and 1 for m in L]
print(m)
a. [1, 2, 3, 4, 5]
b. [1, 1, 1, 1, 1]
c. [1, 0, 1, 0, 1
d. None of the above

Ans. b. [1, 1, 1, 1, 1]
Q92. Write the output of the following :
L= [1,2,3,4,5]
m = [m + 3 for m in L]
print(m)
a. [4, 5, 6, 7, 8, 9]
b. [4, 5, 6, 7, 8, 9, 10]
c. [4, 5, 6, 7, 8]
d. Error

Ans. c. [4, 5, 6, 7, 8]
Q93. Write the output of the following :
L1 = [1, 2, 3, 4, 5]
L2 = [9, 8, 7, 6, 5]
S= [L1 + 3 for L1 in L2]
print(S)
a. [12, 11, 10, 9, 8]
b. [1, 2, 3, 4, 5, 6, 7, 8, 9]
c. [4, 5, 6, 7, 8]

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d. Error

Ans. a. [12, 11, 10, 9, 8]

Q94. Write the output of the following :
L1 = [1, 2, 3]
L2 = [9, 8]
S= [m * n for m in L1 for n in L2]
print(S)
a. [9, 8, 18, 16, 27, 24]
b. [9, 18, 27, 8, 16, 24]
c. [8, 9, 16, 18, 24, 27]
d. Error

Ans. a. [9, 8, 18, 16, 27, 24]

Q95. Write the output of the following :
L1 = [1, 2, 3]
L2 = [9, 8]
S= [n + m for m in L1 for n in L1]
print(S)
a. [2, 3, 4, 3, 4, 5, 4, 5]
b. [1, 2, 3, 2, 3, 4, 3, 4, 5]
c. [2, 3, 4, 3, 4, 5, 4, 5, 6]
d. Error

Ans. c. [2, 3, 4, 3, 4, 5, 4, 5, 6]

Q96. Which of the following statement will generate the square of given list L ?
L = [1, 2, 3, 4, 5]
a. [x ** 2 for x in L
b. [x * 2 for x in L]
c. [x ^ 3 for x in L
d. None of the above

Ans. a. [x ** 2 for x in L
Q97. Which of the following function is used to shuffle the list ?
a. random( )
b. swap( )
c. shuffle( )
d. None of the above

Ans. a. random( )
Q98. Both the print statement will produce the same result.(T/F)
L = ["Amit", "Ananya", "Parth"]
print(L[-1])
print(L[-1][-1])
a. True
b. False

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Ans. b. False
Q99. Write the output of the following:
L1 = [1, 2, 3]
L2 = [1, 2, 3, 4, 5, 6]
print(L1 in L2)
a. True
b. False

Ans. b. False
Q100. Which of the following command will insert 7 in third position of List L.
a. L.insert(3, 7)
b. L.insert(2, 7)
c. L.add(3, 7)
d. L.append(3, 7)

Ans. b. L.insert(2, 7)

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 Questions and Answers –Strings – 1

1. What will be the output of the following Python statement?

1. >>>"a"+"bc"
a) a
b) bc
c) bca
d) abc

Answer: d
Explanation: + operator is concatenation operator.

2. What will be the output of the following Python statement?

1. >>>"abcd"[2:]
a) a
b) ab
c) cd
d) dc

Answer: c
Explanation: Slice operation is performed on string.

3. The output of executing string.ascii_letters can also be achieved by:

a) string.ascii_lowercase_string.digits
b) string.ascii_lowercase+string.ascii_upercase
c) string.letters
d) string.lowercase_string.upercase

Answer: b
Explanation: Execute in shell and check.

4. What will be the output of the following Python code?

1. >>> str1 = 'hello'
2. >>> str2 = ','
3. >>> str3 = 'world'
4. >>> str1[-1:]
a) olleh
b) hello
c) h
d) o

Answer: d
Explanation: -1 corresponds to the last index.

5. What arithmetic operators cannot be used with strings?

a) +
b) *

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c) –
d) All of the mentioned

Answer: c
Explanation: + is used to concatenate and * is used to multiply strings.

6. What will be the output of the following Python code?

1. >>>print (r"\nhello")
a) a new line and hello
b) \nhello
c) the letter r and then hello
d) error

Answer: b
Explanation: When prefixed with the letter ‘r’ or ‘R’ a string literal becomes a raw
string and the escape sequences such as \n are not converted.

7. What will be the output of the following Python statement?

1. >>>print('new' 'line')
a) Error
b) Output equivalent to print ‘new\nline’
c) newline
d) new line

Answer: c
Explanation: String literal separated by whitespace are allowed. They are
concatenated.

8. What will be the output of the following Python statement?

1. >>> print('x\97\x98')
a) Error
b)
97
98
c) x\97
d) \x97\x98

Answer: c
Explanation: \x is an escape sequence that means the following 2 digits are a
hexadecimal number encoding a character.

9. What will be the output of the following Python code?

1. >>>str1="helloworld"
2. >>>str1[::-1]
a) dlrowolleh
b) hello
c) world

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d) helloworld

Answer: a
Explanation: Execute in shell to verify.

10. print(0xA + 0xB + 0xC):

a) 0xA0xB0xC
b) Error
c) 0x22
d) 33

Answer: d
Explanation: 0xA and 0xB and 0xC are hexadecimal integer literals representing the
decimal values 10, 11 and 12 respectively. There sum is 33.

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 Python Questions and Answers – Strings – 2

1. What will be the output of the following Python code?

1. class father:
2. def __init__(self, param):
3. self.o1 = param
4.
5. class child(father):
6. def __init__(self, param):
7. self.o2 = param
8.
9. >>>obj = child(22)
10. >>>print "%d %d" % (obj.o1, obj.o2)
a) None None
b) None 22
c) 22 None
d) Error is generated

Answer: d
Explanation: self.o1 was never created.

2. What will be the output of the following Python code?

1. class tester:
2. def __init__(self, id):
3. self.id = str(id)
4. id="224"
5.
6. >>>temp = tester(12)
7. >>>print(temp.id)
a) 224
b) Error
c) 12
d) None

Answer: c
Explanation: Id in this case will be the attribute of the class.

3. What will be the output of the following Python code?

1. >>>example = "snow world"
2. >>>print("%s" % example[4:7])
a) wo
b) world
c) sn
d) rl

Answer: a
Explanation: Execute in the shell and verify.

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4. What will be the output of the following Python code?
1. >>>example = "snow world"
2. >>>example[3] = 's'
3. >>>print example
a) snow
b) snow world
c) Error
d) snos world

Answer: c
Explanation: Strings cannot be modified.

5. What will be the output of the following Python code?

1. >>>max("what are you")
a) error
b) u
c) t
d) y

Answer: d
Explanation: Max returns the character with the highest ascii value.

6. Given a string example=”hello” what is the output of example.count(‘l’)?

a) 2
b) 1
c) None
d) 0

Answer: a
Explanation: l occurs twice in hello.

7. What will be the output of the following Python code?

1. >>>example = "helle"
2. >>>example.find("e")
a) Error
b) -1
c) 1
d) 0

Answer: c
Explanation: Returns lowest index.

8. What will be the output of the following Python code?

1. >>>example = "helle"
2. >>>example.rfind("e")

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a) -1
b) 4
c) 3
d) 1

Answer: b
Explanation: Returns highest index.

9. What will be the output of the following Python code?

1. >>>example="helloworld"
2. >>>example[::-1].startswith("d")
a) dlrowolleh
b) True
c) -1
d) None

Answer: b
Explanation: Starts with checks if the given string starts with the parameter that is
passed.

10. To concatenate two strings to a third what statements are applicable?

a) s3 = s1 . s2
b) s3 = s1.add(s2)
c) s3 = s1.__add__(s2)
d) s3 = s1 * s2

Answer: c
Explanation: __add__ is another method that can be used for concatenation.

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 Python Questions and Answers – Strings – 3

1. What will be the output of the following Python statement?

1. >>>chr(ord('A'))
a) A
b) B
c) a
d) Error

Answer: a
Explanation: Execute in shell to verify.

2. What will be the output of the following Python statement?

1. >>>print(chr(ord('b')+1))
a) a
b) b
c) c
d) A

Answer: c
Explanation: Execute in the shell to verify.

3. Which of the following statement prints hello\example\test.txt?

a) print(“hello\example\test.txt”)
b) print(“hello\\example\\test.txt”)
c) print(“hello\”example\”test.txt”)
d) print(“hello”\example”\test.txt”)

Answer: b
Explanation: \is used to indicate that the next \ is not an escape sequence.

4. Suppose s is “\t\tWorld\n”, what is s.strip()?

a) \t\tWorld\n
b) \t\tWorld\n
c) \t\tWORLD\n
d) World

Answer: d
Explanation: Execute help(string.strip) to find details.

5. The format function, when applied on a string returns ___________

a) Error
b) int
c) bool
d) str

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Answer: d
Explanation: Format function returns a string.

6. What will be the output of the “hello” +1+2+3?

a) hello123
b) hello
c) Error
d) hello6

Answer: c
Explanation: Cannot concatenate str and int objects.

7. What will be the output of the following Python code?

1. >>>print("D", end = ' ')
2. >>>print("C", end = ' ')
3. >>>print("B", end = ' ')
4. >>>print("A", end = ' ')
a) DCBA
b) A, B, C, D
c) D C B A
d) D, C, B, A will be displayed on four lines

Answer: c
Explanation: Execute in the shell.

8. What will be the output of the following Python statement?(python 3.xx)

1. >>>print(format("Welcome", "10s"), end = '#')
2. >>>print(format(111, "4d"), end = '#')
3. >>>print(format(924.656, "3.2f"))
a) Welcome# 111#924.66
b) Welcome#111#924.66
c) Welcome#111#.66
d) Welcome # 111#924.66

Answer: d
Explanation: Execute in the shell to verify.

9. What will be displayed by print(ord(‘b’) – ord(‘a’))?

a) 0
b) 1
c) -1
d) 2

Answer: b
Explanation: ASCII value of b is one more than a. Hence the output of this code is 98-
97, which is equal to 1.

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10. Say s=”hello” what will be the return value of type(s)?
a) int
b) bool
c) str
d) String

Answer: c
Explanation: str is used to represent strings in python.

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 Python Questions and Answers – Strings – 4

1. What is “Hello”.replace(“l”, “e”)?

a) Heeeo
b) Heelo
c) Heleo
d) None

Answer: a
Explanation: Execute in shell to verify.

2. To retrieve the character at index 3 from string s=”Hello” what command do we execute
(multiple answers allowed)?
a) s[]
b) s.getitem(3)
c) s.__getitem__(3)
d) s.getItem(3)

Answer: c
Explanation: __getitem(..) can be used to get character at index specified as parameter.

3. To return the length of string s what command do we execute?

a) s.__len__()
b) len(s)
c) size(s)
d) s.size()

Answer: a
Explanation: Execute in shell to verify.

4. If a class defines the __str__(self) method, for an object obj for the class, you can use
which command to invoke the __str__ method.
a) obj.__str__()
b) str(obj)
c) print obj
d) all of the mentioned

Answer: d
Explanation: Execute in shell to verify.

5. To check whether string s1 contains another string s2, use ________

a) s1.__contains__(s2)
b) s2 in s1
c) s1.contains(s2)
d) si.in(s2)

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Answer: a
Explanation: s2 in s1 works in the same way as calling the special function __contains__
.

6. Suppose i is 5 and j is 4, i + j is same as ________

a) i.__add(j)
b) i.__add__(j)
c) i.__Add(j)
d) i.__ADD(j)

Answer: b
Explanation: Execute in shell to verify.

7. What will be the output of the following Python code?

1. class Count:
2. def __init__(self, count = 0):
3. self.__count = count
4.
5. c1 = Count(2)
6. c2 = Count(2)
7. print(id(c1) == id(c2), end = " ")
8.
9. s1 = "Good"
10. s2 = "Good"
11. print(id(s1) == id(s2))
a) True False
b) True True
c) False True
d) False False

Answer: c
Explanation: Execute in the shell objects cannot have same id, however in the case of
strings its different.

8. What will be the output of the following Python code?

1. class Name:
2. def __init__(self, firstName, mi, lastName):
3. self.firstName = firstName
4. self.mi = mi
5. self.lastName = lastName
6.
7. firstName = "John"
8. name = Name(firstName, 'F', "Smith")
9. firstName = "Peter"
10. name.lastName = "Pan"
11. print(name.firstName, name.lastName)

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a) Peter Pan
b) John Pan
c) Peter Smith
d) John Smith

Answer: b
Explanation: Execute in the shell to verify.

9. What function do you use to read a string?

a) input(“Enter a string”)
b) eval(input(“Enter a string”))
c) enter(“Enter a string”)
d) eval(enter(“Enter a string”))

Answer: a
Explanation: Execute in shell to verify.

10. Suppose x is 345.3546, what is format(x, “10.3f”) (_ indicates space).

a) __345.355
b) ___345.355
c) ____345.355
d) _____345.354

Answer: b
Explanation: Execute in the shell to verify.

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 Python Questions and Answers – Strings – 5

1. What will be the output of the following Python code?

print("abc DEF".capitalize())
a) abc def
b) ABC DEF
c) Abc def
d) Abc Def

Answer: c
Explanation: The first letter of the string is converted to uppercase and the others are
converted to lowercase.

2. What will be the output of the following Python code?

print("abc. DEF".capitalize())
a) abc. def
b) ABC. DEF
c) Abc. def
d) Abc. Def

Answer: c
Explanation: The first letter of the string is converted to uppercase and the others are
converted to lowercase.

3. What will be the output of the following Python code?

print("abcdef".center())
a) cd
b) abcdef
c) error
d) none of the mentioned

Answer: c
Explanation: The function center() takes at least one parameter.

4. What will be the output of the following Python code?

print("abcdef".center(0))
a) cd
b) abcdef
c) error
d) none of the mentioned

Answer: b
Explanation: The entire string is printed when the argument passed to center() is less
than the length of the string.

5. What will be the output of the following Python code?

print('*', "abcdef".center(7), '*')

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a) * abcdef *
b) * abcdef *
c) *abcdef *
d) * abcdef*

Answer: b
Explanation: Padding is done towards the left-hand-side first when the final string is of
odd length. Extra spaces are present since we haven’t overridden the value of sep.

6. What will be the output of the following Python code?

print('*', "abcdef".center(7), '*', sep='')
a) * abcdef *
b) * abcdef *
c) *abcdef *
d) * abcdef*

Answer: d
Explanation: Padding is done towards the left-hand-side first when the final string is of
odd length.

7. What will be the output of the following Python code?

print('*', "abcde".center(6), '*', sep='')
a) * abcde *
b) * abcde *
c) *abcde *
d) * abcde*

Answer: c
Explanation: Padding is done towards the right-hand-side first when the final string is
of even length.

8. What will be the output of the following Python code?

print("abcdef".center(7, 1))
a) 1abcdef
b) abcdef1
c) abcdef
d) error

Answer: d
Explanation: TypeError, the fill character must be a character, not an int.

9. What will be the output of the following Python code?

print("abcdef".center(7, '1'))
a) 1abcdef
b) abcdef1
c) abcdef

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d) error

Answer: a
Explanation: The character ‘1’ is used for padding instead of a space.

10. What will be the output of the following Python code?

print("abcdef".center(10, '12'))
a) 12abcdef12
b) abcdef1212
c) 1212abcdef
d) error

Answer: d
Explanation: The fill character must be exactly one character long.

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 Python Questions and Answers – Strings – 6

1. What will be the output of the following Python code?

print("xyyzxyzxzxyy".count('yy'))
a) 2
b) 0
c) error
d) none of the mentioned

Answer: a
Explanation: Counts the number of times the substring ‘yy’ is present in the given
string.

2. What will be the output of the following Python code?

print("xyyzxyzxzxyy".count('yy', 1))
a) 2
b) 0
c) 1
d) none of the mentioned

Answer: a
Explanation: Counts the number of times the substring ‘yy’ is present in the given
string, starting from position 1.

3. What will be the output of the following Python code?

print("xyyzxyzxzxyy".count('yy', 2))
a) 2
b) 0
c) 1
d) none of the mentioned

Answer: c
Explanation: Counts the number of times the substring ‘yy’ is present in the given
string, starting from position 2.

4. What will be the output of the following Python code?

print("xyyzxyzxzxyy".count('xyy', 0, 100))
a) 2
b) 0
c) 1
d) error

Answer: a
Explanation: An error will not occur if the end value is greater than the length of the
string itself.

5. What will be the output of the following Python code?

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print("xyyzxyzxzxyy".count('xyy', 2, 11))
a) 2
b) 0
c) 1
d) error

Answer: b
Explanation: Counts the number of times the substring ‘xyy’ is present in the given
string, starting from position 2 and ending at position 11.

6. What will be the output of the following Python code?

print("xyyzxyzxzxyy".count('xyy', -10, -1))
a) 2
b) 0
c) 1
d) error

Answer: b
Explanation: Counts the number of times the substring ‘xyy’ is present in the given
string, starting from position 2 and ending at position 11.

7. What will be the output of the following Python code?

print('abc'.encode())
a) abc
b) ‘abc’
c) b’abc’
d) h’abc’

Answer: c
Explanation: A bytes object is returned by encode.

8. What is the default value of encoding in encode()?

a) ascii
b) qwerty
c) utf-8
d) utf-16

Answer: c
Explanation: The default value of encoding is utf-8.

9. What will be the output of the following Python code?

print("xyyzxyzxzxyy".endswith("xyy"))
a) 1
b) True
c) 3
d) 2

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Answer: b
Explanation: The function returns True if the given string ends with the specified
substring.

10. What will be the output of the following Python code?

print("xyyzxyzxzxyy".endswith("xyy", 0, 2))
a) 0
b) 1
c) True
d) False

Answer: d
Explanation: The function returns False if the given string does not end with the
specified substring

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 Python Questions and Answers – Lists – 1

1. Which of the following commands will create a list?

a) list1 = list()
b) list1 = []
c) list1 = list([1, 2, 3])
d) all of the mentioned

Answer: d
Explanation: Execute in the shell to verify

2. What is the output when we execute list(“hello”)?

a) [‘h’, ‘e’, ‘l’, ‘l’, ‘o’]
b) [‘hello’]
c) [‘llo’]
d) [‘olleh’]

Answer: a
Explanation: Execute in the shell to verify.

3. Suppose listExample is [‘h’,’e’,’l’,’l’,’o’], what is len(listExample)?

a) 5
b) 4
c) None
d) Error

Answer: a
Explanation: Execute in the shell and verify.

4. Suppose list1 is [2445,133,12454,123], what is max(list1)?

a) 2445
b) 133
c) 12454
d) 123

Answer: c
Explanation: Max returns the maximum element in the list.

5. Suppose list1 is [3, 5, 25, 1, 3], what is min(list1)?

a) 3
b) 5
c) 25
d) 1

Answer: d
Explanation: Min returns the minimum element in the list.

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6. Suppose list1 is [1, 5, 9], what is sum(list1)?
a) 1
b) 9
c) 15
d) Error

Answer: c
Explanation: Sum returns the sum of all elements in the list.

7. To shuffle the list(say list1) what function do we use?

a) list1.shuffle()
b) shuffle(list1)
c) random.shuffle(list1)
d) random.shuffleList(list1)

Answer: c
Explanation: Execute in the shell to verify.

8. Suppose list1 is [4, 2, 2, 4, 5, 2, 1, 0], Which of the following is correct syntax for slicing
operation?
a) print(list1[0])
b) print(list1[:2])
c) print(list1[:-2])
d) all of the mentioned

Answer: d
Explanation: Slicing is allowed in lists just as in the case of strings.

9. Suppose list1 is [2, 33, 222, 14, 25], What is list1[-1]?

a) Error
b) None
c) 25
d) 2

Answer: c
Explanation: -1 corresponds to the last index in the list.

10. Suppose list1 is [2, 33, 222, 14, 25], What is list1[:-1]?
a) [2, 33, 222, 14]
b) Error
c) 25
d) [25, 14, 222, 33, 2]

Answer: a
Explanation: Execute in the shell to verify.

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 Python Questions and Answers – Lists – 2

1. What will be the output of the following Python code?

1. >>>names = ['Amir', 'Bear', 'Charlton', 'Daman']
2. >>>print(names[-1][-1])
a) A
b) Daman
c) Error
d) n

Answer: d
Explanation: Execute in the shell to verify.

2. What will be the output of the following Python code?

1. names1 = ['Amir', 'Bear', 'Charlton', 'Daman']
2. names2 = names1
3. names3 = names1[:]
4.
5. names2[0] = 'Alice'
6. names3[1] = 'Bob'
7.
8. sum = 0
9. for ls in (names1, names2, names3):
10. if ls[0] == 'Alice':
11. sum += 1
12. if ls[1] == 'Bob':
13. sum += 10
14.
15. print sum
a) 11
b) 12
c) 21
d) 22

Answer: b
Explanation: When assigning names1 to names2, we create a second reference to the
same list. Changes to names2 affect names1. When assigning the slice of all elements in
names1 to names3, we are creating a full copy of names1 which can be modified
independently.

3. Suppose list1 is [1, 3, 2], What is list1 * 2?

a) [2, 6, 4]
b) [1, 3, 2, 1, 3]
c) [1, 3, 2, 1, 3, 2]
d) [1, 3, 2, 3, 2, 1]

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Answer: c
Explanation: Execute in the shell and verify.

4. Suppose list1 = [0.5 * x for x in range(0, 4)], list1 is:

a) [0, 1, 2, 3]
b) [0, 1, 2, 3, 4]
c) [0.0, 0.5, 1.0, 1.5]
d) [0.0, 0.5, 1.0, 1.5, 2.0]

Answer: c
Explanation: Execute in the shell to verify.

5. What will be the output of the following Python code?

1. >>>list1 = [11, 2, 23]
2. >>>list2 = [11, 2, 2]
3. >>>list1 < list2 is
a) True
b) False
c) Error
d) None

Answer: b
Explanation: Elements are compared one by one.

6. To add a new element to a list we use which command?

a) list1.add(5)
b) list1.append(5)
c) list1.addLast(5)
d) list1.addEnd(5)

Answer: b
Explanation: We use the function append to add an element to the list.

7. To insert 5 to the third position in list1, we use which command?

a) list1.insert(3, 5)
b) list1.insert(2, 5)
c) list1.add(3, 5)
d) list1.append(3, 5)

Answer: b
Explanation: Execute in the shell to verify.

8. To remove string “hello” from list1, we use which command?

a) list1.remove(“hello”)
b) list1.remove(hello)
c) list1.removeAll(“hello”)

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d) list1.removeOne(“hello”)

Answer: a
Explanation: Execute in the shell to verify.

9. Suppose list1 is [3, 4, 5, 20, 5], what is list1.index(5)?

a) 0
b) 1
c) 4
d) 2

Answer: d
Explanation: Execute help(list.index) to get details.

10. Suppose list1 is [3, 4, 5, 20, 5, 25, 1, 3], what is list1.count(5)?

a) 0
b) 4
c) 1
d) 2

Answer: d
Explanation: Execute in the shell to verify.

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 Python Questions and Answers – Lists – 3

1. Suppose list1 is [3, 4, 5, 20, 5, 25, 1, 3], what is list1 after list1.reverse()?
a) [3, 4, 5, 20, 5, 25, 1, 3]
b) [1, 3, 3, 4, 5, 5, 20, 25]
c) [25, 20, 5, 5, 4, 3, 3, 1]
d) [3, 1, 25, 5, 20, 5, 4, 3]

Answer: d
Explanation: Execute in the shell to verify.

2. Suppose listExample is [3, 4, 5, 20, 5, 25, 1, 3], what is list1 after listExample.extend([34,
5])?
a) [3, 4, 5, 20, 5, 25, 1, 3, 34, 5]
b) [1, 3, 3, 4, 5, 5, 20, 25, 34, 5]
c) [25, 20, 5, 5, 4, 3, 3, 1, 34, 5]
d) [1, 3, 4, 5, 20, 5, 25, 3, 34, 5]

Answer: a
Explanation: Execute in the shell to verify.

3. Suppose listExample is [3, 4, 5, 20, 5, 25, 1, 3], what is list1 after listExample.pop(1)?
a) [3, 4, 5, 20, 5, 25, 1, 3]
b) [1, 3, 3, 4, 5, 5, 20, 25]
c) [3, 5, 20, 5, 25, 1, 3]
d) [1, 3, 4, 5, 20, 5, 25]

Answer: c
Explanation: pop() removes the element at the position specified in the parameter.

4. Suppose listExample is [3, 4, 5, 20, 5, 25, 1, 3], what is list1 after listExample.pop()?
a) [3, 4, 5, 20, 5, 25, 1]
b) [1, 3, 3, 4, 5, 5, 20, 25]
c) [3, 5, 20, 5, 25, 1, 3]
d) [1, 3, 4, 5, 20, 5, 25]

Answer: a
Explanation: pop() by default will remove the last element.

5. What will be the output of the following Python code?

1. >>>"Welcome to Python".split()
a) [“Welcome”, “to”, “Python”]
b) (“Welcome”, “to”, “Python”)
c) {“Welcome”, “to”, “Python”}
d) “Welcome”, “to”, “Python”

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Answer: a
Explanation: split() function returns the elements in a list.

6. What will be the output of the following Python code?

1. >>>list("a#b#c#d".split('#'))
a) [‘a’, ‘b’, ‘c’, ‘d’]
b) [‘a b c d’]
c) [‘a#b#c#d’]
d) [‘abcd’]

Answer: a
Explanation: Execute in the shell to verify.

7. What will be the output of the following Python code?

1. myList = [1, 5, 5, 5, 5, 1]
2. max = myList[0]
3. indexOfMax = 0
4. for i in range(1, len(myList)):
5. if myList[i] > max:
6. max = myList[i]
7. indexOfMax = i
8.
9. >>>print(indexOfMax)
a) 1
b) 2
c) 3
d) 4

Answer: a
Explanation: First time the highest number is encountered is at index 1.

8. What will be the output of the following Python code?

1. myList = [1, 2, 3, 4, 5, 6]
2. for i in range(1, 6):
3. myList[i - 1] = myList[i]
4.
5. for i in range(0, 6):
6. print(myList[i], end = " ")
a) 2 3 4 5 6 1
b) 6 1 2 3 4 5
c) 2 3 4 5 6 6
d) 1 1 2 3 4 5

Answer: c
Explanation: Execute in the shell to verify.

9. What will be the output of the following Python code?

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 1. >>>list1 = [1, 3]
2. >>>list2 = list1
3. >>>list1[0] = 4
4. >>>print(list2)
a) [1, 3]
b) [4, 3]
c) [1, 4]
d) [1, 3, 4]

Answer: b
Explanation: Lists should be copied by executing [:] operation.

10. What will be the output of the following Python code?

1. def f(values):
2. values[0] = 44
3.
4. v = [1, 2, 3]
5. f(v)
6. print(v)
a) [1, 44]
b) [1, 2, 3, 44]
c) [44, 2, 3]
d) [1, 2, 3]

Answer: c
Explanation: Execute in the shell to verify.

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 Python Questions and Answers – Lists – 4

1. What will be the output of the following Python code?

1. def f(i, values = []):
2. values.append(i)
3. return values
4.
5. f(1)
6. f(2)
7. v = f(3)
8. print(v)
a) [1] [2] [3]
b) [1] [1, 2] [1, 2, 3]
c) [1, 2, 3]
d) 1 2 3

Answer: c
Explanation: Execute in the shell to verify

2. What will be the output of the following Python code?

1. names1 = ['Amir', 'Bala', 'Chales']
2.
3. if 'amir' in names1:
4. print(1)
5. else:
6. print(2)
a) None
b) 1
c) 2
d) Error

Answer: c
Explanation: Execute in the shell to verify.

3. What will be the output of the following Python code?

1. names1 = ['Amir', 'Bala', 'Charlie']
2. names2 = [name.lower() for name in names1]
3.
4. print(names2[2][0])
a) None
b) a
c) b
d) c

Answer: d
Explanation: List Comprehension are a shorthand for creating new lists.

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4. What will be the output of the following Python code?
1. numbers = [1, 2, 3, 4]
2.
3. numbers.append([5,6,7,8])
4.
5. print(len(numbers))
a) 4
b) 5
c) 8
d) 12

Answer: b
Explanation: A list is passed in append so the length is 5.

5. To which of the following the “in” operator can be used to check if an item is in it?
a) Lists
b) Dictionary
c) Set
d) All of the mentioned

Answer: d
Explanation: In can be used in all data structures.

6. What will be the output of the following Python code?

1. list1 = [1, 2, 3, 4]
2. list2 = [5, 6, 7, 8]
3.
4. print(len(list1 + list2))
a) 2
b) 4
c) 5
d) 8

Answer: d
Explanation: + appends all the elements individually into a new list.

7. What will be the output of the following Python code?

1. def addItem(listParam):
2. listParam += [1]
3.
4. mylist = [1, 2, 3, 4]
5. addItem(mylist)
6. print(len(mylist))
a) 1
b) 4
c) 5

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d) 8

Answer: c
Explanation: + will append the element to the list.

8. What will be the output of the following Python code?

1. def increment_items(L, increment):
2. i=0
3. while i < len(L):
4. L[i] = L[i] + increment
5. i=i+1
6.
7. values = [1, 2, 3]
8. print(increment_items(values, 2))
9. print(values)
a)
None
[3, 4, 5]
b)
None
[1, 2, 3]
c)
[3, 4, 5]
[1, 2, 3]
d)
[3, 4, 5]
None

Answer: a
Explanation: Execute in the shell to verify.

9. What will be the output of the following Python code?

1. def example(L):
2. ''' (list) -> list
3. '''
4. i=0
5. result = []
6. while i < len(L):
7. result.append(L[i])
8. i=i+3
9. return result
a) Return a list containing every third item from L starting at index 0
b) Return an empty list
c) Return a list containing every third index from L starting at index 0
d) Return a list containing the items from L starting from index 0, omitting every third item

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Answer: a
Explanation: Run the code to get a better understanding with many arguments.

10. What will be the output of the following Python code?

1. veggies = ['carrot', 'broccoli', 'potato', 'asparagus']
2. veggies.insert(veggies.index('broccoli'), 'celery')
3. print(veggies)
a) [‘carrot’, ‘celery’, ‘broccoli’, ‘potato’, ‘asparagus’] Correct 1.00
b) [‘carrot’, ‘celery’, ‘potato’, ‘asparagus’]

c) [‘carrot’, ‘broccoli’, ‘celery’, ‘potato’, ‘asparagus’]

d) [‘celery’, ‘carrot’, ‘broccoli’, ‘potato’, ‘asparagus’]

Answer: a
Explanation: Execute in the shell to verify.

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 Python Questions and Answers – Lists – 5

1. What will be the output of the following Python code?

1. >>>m = [[x, x + 1, x + 2] for x in range(0, 3)]
a) [[1, 2, 3], [4, 5, 6], [7, 8, 9]]
b) [[0, 1, 2], [1, 2, 3], [2, 3, 4]]
c) [1, 2, 3, 4, 5, 6, 7, 8, 9]
d) [0, 1, 2, 1, 2, 3, 2, 3, 4]

Answer: b
Explanation: Execute in the shell to verify.

2. How many elements are in m?

1. m = [[x, y] for x in range(0, 4) for y in range(0, 4)]
a) 8
b) 12
c) 16
d) 32

Answer: c
Explanation: Execute in the shell to verify.

3. What will be the output of the following Python code?

1. values = [[3, 4, 5, 1], [33, 6, 1, 2]]
2.
3. v = values[0][0]
4. for row in range(0, len(values)):
5. for column in range(0, len(values[row])):
6. if v < values[row][column]:
7. v = values[row][column]
8.
9. print(v)
a) 3
b) 5
c) 6
d) 33

Answer: d
Explanation: Execute in the shell to verify.

4. What will be the output of the following Python code?

1. values = [[3, 4, 5, 1], [33, 6, 1, 2]]
2.
3. v = values[0][0]
4. for lst in values:
5. for element in lst:
6. if v > element:

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 7. v = element
8.
9. print(v)
a) 1
b) 3
c) 5
d) 6

Answer: a
Explanation: Execute in the shell to verify.

5. What will be the output of the following Python code?

1. values = [[3, 4, 5, 1 ], [33, 6, 1, 2]]
2.
3. for row in values:
4. row.sort()
5. for element in row:
6. print(element, end = " ")
7. print()
a) The program prints two rows 3 4 5 1 followed by 33 6 1 2
b) The program prints on row 3 4 5 1 33 6 1 2
c) The program prints two rows 3 4 5 1 followed by 33 6 1 2
d) The program prints two rows 1 3 4 5 followed by 1 2 6 33

Answer: d
Explanation: Execute in the shell to verify.

6. What will be the output of the following Python code?

1. matrix = [[1, 2, 3, 4],
2. [4, 5, 6, 7],
3. [8, 9, 10, 11],
4. [12, 13, 14, 15]]
5.
6. for i in range(0, 4):
7. print(matrix[i][1], end = " ")
a) 1 2 3 4
b) 4 5 6 7
c) 1 3 8 12
d) 2 5 9 13

Answer: d
Explanation: Execute in the shell to verify.

7. What will be the output of the following Python code?

1. def m(list):
2. v = list[0]
3. for e in list:

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 4. if v < e: v = e
5. return v
6.
7. values = [[3, 4, 5, 1], [33, 6, 1, 2]]
8.
9. for row in values:
10. print(m(row), end = " ")
a) 3 33
b) 1 1
c) 5 6
d) 5 33

Answer: d
Explanation: Execute in the shell to verify.

8. What will be the output of the following Python code?

1. data = [[[1, 2], [3, 4]], [[5, 6], [7, 8]]]
2.
3. print(data[1][0][0])
a) 1
b) 2
c) 4
d) 5

Answer: d
Explanation: Execute in the shell to verify.

9. What will be the output of the following Python code?

1. data = [[[1, 2], [3, 4]], [[5, 6], [7, 8]]]
2.
3. def ttt(m):
4. v = m[0][0]
5.
6. for row in m:
7. for element in row:
8. if v < element: v = element
9.
10. return v
11.
12. print(ttt(data[0]))
a) 1
b) 2
c) 4
d) 5

Answer: c
Explanation: Execute in the shell to verify.

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10. What will be the output of the following Python code?
1. points = [[1, 2], [3, 1.5], [0.5, 0.5]]
2. points.sort()
3. print(points)
a) [[1, 2], [3, 1.5], [0.5, 0.5]]
b) [[3, 1.5], [1, 2], [0.5, 0.5]]
c) [[0.5, 0.5], [1, 2], [3, 1.5]]
d) [[0.5, 0.5], [3, 1.5], [1, 2]]

Answer: c
Explanation: Execute in the shell to verify.

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 Python Questions and Answers – Lists – 6

1. What will be the output of the following Python code?

a=[10,23,56,[78]]
b=list(a)
a[3][0]=95
a[1]=34
print(b)
a) [10,34,56,[95]]
b) [10,23,56,[78]]
c) [10,23,56,[95]]
d) [10,34,56,[78]]

Answer: c
Explanation: The above copy is a type of shallow copy and only changes made in sublist
is reflected in the copied list.

2. What will be the output of the following Python code?

print(list(zip((1,2,3),('a'),('xxx','yyy'))))
print(list(zip((2,4),('b','c'),('yy','xx'))))
a)
[(1,2,3),(‘a’),(‘xxx’,’yyy’)]
[(2,4),(‘b’,’c’),(‘yy’,’xx’)]
b)
[(1, 'a', 'xxx'),(2,’ ‘,’yyy’),(3,’ ‘,’ ‘)]
[(2, 'b', 'yy'), (4, 'c', 'xx')]
c) Syntax error
d)
[(1, 'a', 'xxx')]
[(2, 'b', 'yy'), (4, 'c', 'xx')]

Answer: d
Explanation: The zip function combines the individual attributes of the lists into a list
of tuples.

3. What will be the output of the following Python code?

import copy
a=[10,23,56,[78]]
b=copy.deepcopy(a)
a[3][0]=95
a[1]=34
print(b)
a) [10,34,56,[95]]
b) [10,23,56,[78]]
c) [10,23,56,[95]]
d) [10,34,56,[78]]

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Answer: b
Explanation: The above copy is deepcopy. Any change made in the original list isn’t
reflected.

4. What will be the output of the following Python code?

s="a@b@c@d"
a=list(s.partition("@"))
print(a)
b=list(s.split("@",3))
print(b)
a)
[‘a’,’b’,’c’,’d’]
[‘a’,’b’,’c’,’d’]
b)
[‘a’,’@’,’b’,’@’,’c’,’@’,’d’]
[‘a’,’b’,’c’,’d’]
c)
[‘a’,’@’,’b@c@d’]
[‘a’,’b’,’c’,’d’]
d)
[‘a’,’@’,’b@c@d’]
[‘a’,’@’,’b’,’@’,’c’,’@’,’d’]

Answer: c
Explanation: The partition function only splits for the first parameter along with the
separator while split function splits for the number of times given in the second
argument but without the separator.

5. What will be the output of the following Python code?

a=[1,2,3,4]
b=[sum(a[0:x+1]) for x in range(0,len(a))]
print(b)
a) 10
b) [1,3,5,7]
c) 4
d) [1,3,6,10]

Answer: d
Explanation: The above code returns the cumulative sum of elements in a list.

6. What will be the output of the following Python code?

a="hello"
b=list((x.upper(),len(x)) for x in a)
print(b)
a) [(‘H’, 1), (‘E’, 1), (‘L’, 1), (‘L’, 1), (‘O’, 1)]
b) [(‘HELLO’, 5)]
c) [(‘H’, 5), (‘E’, 5), (‘L’, 5), (‘L’, 5), (‘O’, 5)]

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d) Syntax error

Answer: a
Explanation: Variable x iterates over each letter in string a hence the length of each
letter is 1.

7. What will be the output of the following Python code?

a=[1,2,3,4]
b=[sum(a[0:x+1]) for x in range(0,len(a))]
print(b)
a) 10
b) [1,3,5,7]
c) 4
d) [1,3,6,10]

Answer: d
Explanation: The above code returns the cumulative sum of elements in a list.

8. What will be the output of the following Python code?

a=[[]]*3
a[1].append(7)
print(a)
a) Syntax error
b) [[7], [7], [7]]
c) [[7], [], []]
d) [[],7, [], []]

Answer: b
Explanation: The first line of the code creates multiple reference copies of sublist.
Hence when 7 is appended, it gets appended to all the sublists.

9. What will be the output of the following Python code?

b=[2,3,4,5]
a=list(filter(lambda x:x%2,b))
print(a)
a) [2,4]
b) [ ]
c) [3,5]
d) Invalid arguments for filter function

Answer: c
Explanation: The filter function gives value from the list b for which the condition is
true, that is, x%2==1.

10. What will be the output of the following Python code?

lst=[3,4,6,1,2]
lst[1:2]=[7,8]

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print(lst)
a) [3, 7, 8, 6, 1, 2]
b) Syntax error
c) [3,[7,8],6,1,2]
d) [3,4,6,7,8]

Answer: a
Explanation: In the piece of code, slice assignment has been implemented. The sliced
list is replaced by the assigned elements in the list. Type in python shell to verify.

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 Python Questions and Answers – Lists – 7

1. What will be the output of the following Python code?

a=[1,2,3]
b=a.append(4)
print(a)
print(b)
a)
[1,2,3,4]
[1,2,3,4]
b)
[1, 2, 3, 4]
None
c) Syntax error
d)
[1,2,3]
[1,2,3,4]

Answer: b
Explanation: Append function on lists doesn’t return anything. Thus the value of b is
None.

2. What will be the output of the following Python code?

>>> a=[14,52,7]
>>>> b=a.copy()
>>> b is a
a) True
b) False

Answer: b
Explanation: List b is just a copy of the original list. Any copy made in list b will not be
reflected in list a.

3. What will be the output of the following Python code?

a=[13,56,17]
a.append([87])
a.extend([45,67])
print(a)
a) [13, 56, 17, [87], 45, 67]
b) [13, 56, 17, 87, 45, 67]
c) [13, 56, 17, 87,[ 45, 67]]
d) [13, 56, 17, [87], [45, 67]]

Answer: a
Explanation: The append function simply adds its arguments to the list as it is while
extend function extends its arguments and later appends it.

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4. What is the output of the following piece of code?
a=list((45,)*4)
print((45)*4)
print(a)
a)
180
[(45),(45),(45),(45)]
b)
(45,45,45,45)
[45,45,45,45]
c)
180
[45,45,45,45]
d) Syntax error

Answer: c
Explanation: (45) is an int while (45,) is a tuple of one element. Thus when a tuple is
multiplied, it created references of itself which is later converted to a list.

5. What will be the output of the following Python code?

lst=[[1,2],[3,4]]
print(sum(lst,[]))
a) [[3],[7]]
b) [1,2,3,4]
c) Error
d) [10]

Answer: b
Explanation: The above piece of code is used for flattening lists.

6. What will be the output of the following Python code?

word1="Apple"
word2="Apple"
list1=[1,2,3]
list2=[1,2,3]
print(word1 is word2)
print(list1 is list2)
a)
True
True
b)
False
True
c)
False
False
d)

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True
False

Answer: d
Explanation: In the above case, both the lists are equivalent but not identical as they
have different objects.

7. What will be the output of the following Python code?

def unpack(a,b,c,d):
print(a+d)
x = [1,2,3,4]
unpack(*x)
a) Error
b) [1,4]
c) [5]
d) 5

Answer: d
Explanation: unpack(*x) unpacks the list into the separate variables. Now, a=1 and
d=4. Thus 5 gets printed.

8. What will be the output of the following Python code?

places = ['Bangalore', 'Mumbai', 'Delhi']
<br class="blank" />places1 = places
places2 = places[:]
<br class="blank" />places1[1]="Pune"
places2[2]="Hyderabad"
print(places)
a) [‘Bangalore’, ‘Pune’, ‘Hyderabad’]
b) [‘Bangalore’, ‘Pune’, ‘Delhi’]
c) [‘Bangalore’, ‘Mumbai’, ‘Delhi’]
d) [‘Bangalore’, ‘Mumbai’, ‘Hyderabad’]

Answer: b
Explanation: places1 is an alias of the list places. Hence, any change made to places1 is
reflected in places. places2 is a copy of the list places. Thus, any change made to places2
isn’t reflected in places.

9. What will be the output of the following Python code?

x=[[1],[2]]
print(" ".join(list(map(str,x))))
a) [1] [2]
b) [49] [50]
c) Syntax error
d) [[1]] [[2]]

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Answer: a
Explanation: The elements 1 and 2 are first put into separate lists and then combined
with a space in between using the join attribute.

10. What will be the output of the following Python code?

a=165
b=sum(list(map(int,str(a))))
print(b)
a) 561
b) 5
c) 12
d) Syntax error

Answer: c
Explanation: First, map converts the number to string and then places the individual
digits in a list. Then, sum finds the sum of the digits in the list. The code basically finds
the sum of digits in the number.

11. What will be the output of the following Python code?

a= [1, 2, 3, 4, 5]
for i in range(1, 5):
a[i-1] = a[i]
for i in range(0, 5):
print(a[i],end = " ")
a) 5 5 1 2 3
b) 5 1 2 3 4
c) 2 3 4 5 1
d) 2 3 4 5 5

Answer: d
Explanation: The items having indexes from 1 to 4 are shifted forward by one index
due to the first for-loop and the item of index four is printed again because of the
second for-loop.

12. What will be the output of the following Python code?

def change(var, lst):
var = 1
lst[0] = 44
k=3
a = [1, 2, 3]
change(k, a)
print(k)
print(a)
a)
3
[44, 2, 3]
b)

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1
[1,2,3]
c)
3
[1,2,3]
d)
1
[44,2,3]

Answer: a
Explanation: A list is mutable, hence it’s value changes after function call. However,
integer isn’t mutable. Thus its value doesn’t change.

13. What will be the output of the following Python code?

a = [1, 5, 7, 9, 9, 1]
<br class="blank" />b=a[0]
<br class="blank" />x= 0
for x in range(1, len(a)):
if a[x] > b:
b = a[x]
b= x
print(b)
a) 5
b) 3
c) 4
d) 0

Answer: c
Explanation: The above piece of code basically prints the index of the largest element in
the list.

14. What will be the output of the following Python code?

a=["Apple","Ball","Cobra"]
<br class="blank" />a.sort(key=len)
print(a)
a) [‘Apple’, ‘Ball’, ‘Cobra’]
b) [‘Ball’, ‘Apple’, ‘Cobra’]
c) [‘Cobra’, ‘Apple’, ‘Ball’]
d) Invalid syntax for sort()

Answer: b
Explanation: The syntax isn’t invalid and the list is sorted according to the length of the
strings in the list since key is given as len.

15. What will be the output of the following Python code?

num = ['One', 'Two', 'Three']
for i, x in enumerate(num):

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 print('{}: {}'.format(i, x),end=" ")
a) 1: 2: 3:
b) Exception is thrown
c) One Two Three
d) 0: One 1: Two 2: Three

Answer: d
Explanation: enumerate(iterator,start=0) is a built-in function which returns
(0,lst[0]),(1,lst[1]) and so on where lst is a list(iterator).

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 Python Questions and Answers – Tuples – 1

1. Which of the following is a Python tuple?

a) [1, 2, 3]
b) (1, 2, 3)
c) {1, 2, 3}
d) {}

Answer: b
Explanation: Tuples are represented with round brackets.

2. Suppose t = (1, 2, 4, 3), which of the following is incorrect?

a) print(t[3])
b) t[3] = 45
c) print(max(t))
d) print(len(t))

Answer: b
Explanation: Values cannot be modified in the case of tuple, that is, tuple is immutable.

3. What will be the output of the following Python code?

1. >>>t=(1,2,4,3)
2. >>>t[1:3]
a) (1, 2)
b) (1, 2, 4)
c) (2, 4)
d) (2, 4, 3)

Answer: c
Explanation: Slicing in tuples takes place just as it does in strings.

4. What will be the output of the following Python code?

1. >>>t=(1,2,4,3)
2. >>>t[1:-1]
a) (1, 2)
b) (1, 2, 4)
c) (2, 4)
d) (2, 4, 3)

Answer: c
Explanation: Slicing in tuples takes place just as it does in strings.

5. What will be the output of the following Python code?

1. >>>t = (1, 2, 4, 3, 8, 9)
2. >>>[t[i] for i in range(0, len(t), 2)]
a) [2, 3, 9]
b) [1, 2, 4, 3, 8, 9]

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c) [1, 4, 8]
d) (1, 4, 8)

Answer: c
Explanation: Execute in the shell to verify.

6. What will be the output of the following Python code?

1. d = {"john":40, "peter":45}
2. d["john"]
a) 40
b) 45
c) “john”
d) “peter”

Answer: a
Explanation: Execute in the shell to verify.

7. What will be the output of the following Python code?

1. >>>t = (1, 2)
2. >>>2 * t
a) (1, 2, 1, 2)
b) [1, 2, 1, 2]
c) (1, 1, 2, 2)
d) [1, 1, 2, 2]

Answer: a
Explanation: * operator concatenates tuple.

8. What will be the output of the following Python code?

1. >>>t1 = (1, 2, 4, 3)
2. >>>t2 = (1, 2, 3, 4)
3. >>>t1 < t2
a) True
b) False
c) Error
d) None

Answer: b
Explanation: Elements are compared one by one in this case.

9. What will be the output of the following Python code?

1. >>>my_tuple = (1, 2, 3, 4)
2. >>>my_tuple.append( (5, 6, 7) )
3. >>>print len(my_tuple)
a) 1
b) 2
c) 5

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d) Error

Answer: d
Explanation: Tuples are immutable and don’t have an append method. An exception is
thrown in this case.

10. What will be the output of the following Python code?

2. numberGames = {}
3. numberGames[(1,2,4)] = 8
4. numberGames[(4,2,1)] = 10
5. numberGames[(1,2)] = 12
6. sum = 0
7. for k in numberGames:
8. sum += numberGames[k]
9. print len(numberGames) + sum
a) 30
b) 24
c) 33
d) 12

Answer: c
Explanation: Tuples can be used for keys into dictionary. The tuples can have mixed
length and the order of the items in the tuple is considered when comparing the
equality of the keys.

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 Python Questions and Answers – Tuples – 2

1. What is the data type of (1)?

a) Tuple
b) Integer
c) List
d) Both tuple and integer

Answer: b
Explanation: A tuple of one element must be created as (1,).

2. If a=(1,2,3,4), a[1:-1] is _________

a) Error, tuple slicing doesn’t exist
b) [2,3]
c) (2,3,4)
d) (2,3)

Answer: d
Explanation: Tuple slicing exists and a[1:-1] returns (2,3).

3. What will be the output of the following Python code?

>>> a=(1,2,(4,5))
>>> b=(1,2,(3,4))
>>> a<b
a) False
b) True
c) Error, < operator is not valid for tuples
d) Error, < operator is valid for tuples but not if there are sub-tuples

Answer: a
Explanation: Since the first element in the sub-tuple of a is larger that the first element
in the subtuple of b, False is printed.

4. What will be the output of the following Python code?

>>> a=("Check")*3
>>> a
a) (‘Check’,’Check’,’Check’)
b) * Operator not valid for tuples
c) (‘CheckCheckCheck’)
d) Syntax error

Answer: c
Explanation: Here (“Check”) is a string not a tuple because there is no comma after the
element.

5. What will be the output of the following Python code?

>>> a=(1,2,3,4)

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>>> del(a[2])
a) Now, a=(1,2,4)
b) Now, a=(1,3,4)
c) Now a=(3,4)
d) Error as tuple is immutable

Answer: d
Explanation: ‘tuple’ object doesn’t support item deletion.

6. What will be the output of the following Python code?

>>> a=(2,3,4)
>>> sum(a,3)
a) Too many arguments for sum() method
b) The method sum() doesn’t exist for tuples
c) 12
d) 9

Answer: c
Explanation: In the above case, 3 is the starting value to which the sum of the tuple is
added to.

7. Is the following Python code valid?

>>> a=(1,2,3,4)
>>> del a
a) No because tuple is immutable
b) Yes, first element in the tuple is deleted
c) Yes, the entire tuple is deleted
d) No, invalid syntax for del method

Answer: c
Explanation: The command del a deletes the entire tuple.

8. What type of data is: a=[(1,1),(2,4),(3,9)]?

a) Array of tuples
b) List of tuples
c) Tuples of lists
d) Invalid type

Answer: b
Explanation: The variable a has tuples enclosed in a list making it a list of tuples.

9. What will be the output of the following Python code?

>>> a=(0,1,2,3,4)
>>> b=slice(0,2)
>>> a[b]
a) Invalid syntax for slicing
b) [0,2]

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c) (0,1)
d) (0,2)

Answer: c
Explanation: The method illustrated in the above piece of code is that of naming of
slices.

10. Is the following Python code valid?

>>> a=(1,2,3)
>>> b=('A','B','C')
>>> c=tuple(zip(a,b))
a) Yes, c will be ((1, ‘A’), (2, ‘B’), (3, ‘C’))
b) Yes, c will be ((1,2,3),(‘A’,’B’,’C’))
c) No because tuples are immutable
d) No because the syntax for zip function isn’t valid

Answer: a
Explanation: Zip function combines individual elements of two iterables into tuples.
Execute in Python shell to verify.

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 Python Questions and Answers – Tuples-3

1. Is the following Python code valid?

>>> a,b,c=1,2,3
>>> a,b,c
a) Yes, [1,2,3] is printed
b) No, invalid syntax
c) Yes, (1,2,3) is printed
d) 1 is printed

Answer: c
Explanation: A tuple needn’t be enclosed in parenthesis.

2. What will be the output of the following Python code?

a = ('check',)
n=2
for i in range(int(n)):
a = (a,)
print(a)
a) Error, tuples are immutable
b)
(('check',),)
((('check',),),)
c) ((‘check’,)’check’,)
d)
(('check',)’check’,)
((('check',)’check’,)’check’,)

Answer: b
Explanation: The loop runs two times and each time the loop runs an extra parenthesis
along with a comma is added to the tuple (as a=(a’)).

3. Is the following Python code valid?

>>> a,b=1,2,3
a) Yes, this is an example of tuple unpacking. a=1 and b=2
b) Yes, this is an example of tuple unpacking. a=(1,2) and b=3
c) No, too many values to unpack
d) Yes, this is an example of tuple unpacking. a=1 and b=(2,3)

Answer: c
Explanation: For unpacking to happen, the number of values of the right hand side
must be equal to the number of variables on the left hand side.

4. What will be the output of the following Python code?

>>> a=(1,2)
>>> b=(3,4)
>>> c=a+b

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>>> c
a) (4,6)
b) (1,2,3,4)
c) Error as tuples are immutable
d) None

Answer: b
Explanation: In the above piece of code, the values of the tuples aren’t being changed.
Both the tuples are simply concatenated.

5. What will be the output of the following Python code?

>>> a,b=6,7
>>> a,b=b,a
>>> a,b
a) (6,7)
b) Invalid syntax
c) (7,6)
d) Nothing is printed

Answer: c
Explanation: The above piece of code illustrates the unpacking of variables.

6. What will be the output of the following Python code?

>>> import collections
>>> a=collections.namedtuple('a',['i','j'])
>>> obj=a(i=4,j=7)
>>> obj
a) a(i=4, j=7)
b) obj(i=4, j=7)
c) (4,7)
d) An exception is thrown

Answer: a
Explanation: The above piece of code illustrates the concept of named tuples.

7. Tuples can’t be made keys of a dictionary.

a) True
b) False

Answer: b
Explanation: Tuples can be made keys of a dictionary because they are hashable.

8. Is the following Python code valid?

>>> a=2,3,4,5
>>> a
a) Yes, 2 is printed
b) Yes, [2,3,4,5] is printed

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c) No, too many values to unpack
d) Yes, (2,3,4,5) is printed

Answer: d
Explanation: A tuple needn’t be enclosed in parenthesis.

9. What will be the output of the following Python code?

>>> a=(2,3,1,5)
>>> a.sort()
>>> a
a) (1,2,3,5)
b) (2,3,1,5)
c) None
d) Error, tuple has no attribute sort

Answer: d
Explanation: A tuple is immutable thus it doesn’t have a sort attribute.

10. Is the following Python code valid?

>>> a=(1,2,3)
>>> b=a.update(4,)
a) Yes, a=(1,2,3,4) and b=(1,2,3,4)
b) Yes, a=(1,2,3) and b=(1,2,3,4)
c) No because tuples are immutable
d) No because wrong syntax for update() method

Answer: c
Explanation: Tuple doesn’t have any update() attribute because it is immutable.

11. What will be the output of the following Python code?

>>> a=[(2,4),(1,2),(3,9)]
>>> a.sort()
>>> a
a) [(1, 2), (2, 4), (3, 9)]
b) [(2,4),(1,2),(3,9)]
c) Error because tuples are immutable
d) Error, tuple has no sort attribute

Answer: a
Explanation: A list of tuples is a list itself. Hence items of a list can be sorted.

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 Python Questions and Answers – Dictionary – 1

1. Which of the following statements create a dictionary?

a) d = {}
b) d = {“john”:40, “peter”:45}
c) d = {40:”john”, 45:”peter”}
d) All of the mentioned

Answer: d
Explanation: Dictionaries are created by specifying keys and values.

2. What will be the output of the following Python code snippet?

1. d = {"john":40, "peter":45}
a) “john”, 40, 45, and “peter”
b) “john” and “peter”
c) 40 and 45
d) d = (40:”john”, 45:”peter”)

Answer: b
Explanation: Dictionaries appear in the form of keys and values.

3. What will be the output of the following Python code snippet?

1. d = {"john":40, "peter":45}
2. "john" in d
a) True
b) False
c) None
d) Error

Answer: a
Explanation: In can be used to check if the key is int dictionary.

4. What will be the output of the following Python code snippet?

1. d1 = {"john":40, "peter":45}
2. d2 = {"john":466, "peter":45}
3. d1 == d2
a) True
b) False
c) None
d) Error

Answer: b
Explanation: If d2 was initialized as d2 = d1 the answer would be true.

5. What will be the output of the following Python code snippet?

1. d1 = {"john":40, "peter":45}
2. d2 = {"john":466, "peter":45}

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 3. d1 > d2
a) True
b) False
c) Error
d) None

Answer: c
Explanation: Arithmetic > operator cannot be used with dictionaries.

6. What will be the output of the following Python code snippet?

1. d = {"john":40, "peter":45}
2. d["john"]
a) 40
b) 45
c) “john”
d) “peter”

Answer: a
Explanation: Execute in the shell to verify.

7. Suppose d = {“john”:40, “peter”:45}, to delete the entry for “john” what command do we
use?
a) d.delete(“john”:40)
b) d.delete(“john”)
c) del d[“john”]
d) del d(“john”:40)

Answer: c
Explanation: Execute in the shell to verify.

8. Suppose d = {“john”:40, “peter”:45}. To obtain the number of entries in dictionary which

command do we use?
a) d.size()
b) len(d)
c) size(d)
d) d.len()

Answer: b
Explanation: Execute in the shell to verify.

9. What will be the output of the following Python code snippet?

1. d = {"john":40, "peter":45}
2. print(list(d.keys()))
a) [“john”, “peter”]
b) [“john”:40, “peter”:45]
c) (“john”, “peter”)

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d) (“john”:40, “peter”:45)

Answer: a
Explanation: The output of the code shown above is a list containing only keys of the
dictionary d, in the form of a list.

10. Suppose d = {“john”:40, “peter”:45}, what happens when we try to retrieve a value using
the expression d[“susan”]?
a) Since “susan” is not a value in the set, Python raises a KeyError exception
b) It is executed fine and no exception is raised, and it returns None
c) Since “susan” is not a key in the set, Python raises a KeyError exception
d) Since “susan” is not a key in the set, Python raises a syntax error

Answer: c
Explanation: Execute in the shell to verify.

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 Python Questions and Answers – Dictionary – 2

1. Which of these about a dictionary is false?

a) The values of a dictionary can be accessed using keys
b) The keys of a dictionary can be accessed using values
c) Dictionaries aren’t ordered
d) Dictionaries are mutable

Answer: b
Explanation: The values of a dictionary can be accessed using keys but the keys of a
dictionary can’t be accessed using values.

2. Which of the following is not a declaration of the dictionary?

a) {1: ‘A’, 2: ‘B’}
b) dict([[1,”A”],[2,”B”]])
c) {1,”A”,2”B”}
d) { }

Answer: c
Explanation: Option c is a set, not a dictionary.

3. What will be the output of the following Python code snippet?

a={1:"A",2:"B",3:"C"}
for i,j in a.items():
print(i,j,end=" ")
a) 1 A 2 B 3 C
b) 1 2 3
c) A B C
d) 1:”A” 2:”B” 3:”C”

Answer: a
Explanation: In the above code, variables i and j iterate over the keys and values of the
dictionary respectively.

4. What will be the output of the following Python code snippet?

a={1:"A",2:"B",3:"C"}
print(a.get(1,4))
a) 1
b) A
c) 4
d) Invalid syntax for get method

Answer: b
Explanation: The get() method returns the value of the key if the key is present in the
dictionary and the default value(second parameter) if the key isn’t present in the
dictionary.

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5. What will be the output of the following Python code snippet?
a={1:"A",2:"B",3:"C"}
print(a.get(5,4))
a) Error, invalid syntax
b) A
c) 5
d) 4

Answer: d
Explanation: The get() method returns the default value(second parameter) if the key
isn’t present in the dictionary.

6. What will be the output of the following Python code snippet?

a={1:"A",2:"B",3:"C"}
print(a.setdefault(3))
a) {1: ‘A’, 2: ‘B’, 3: ‘C’}
b) C
c) {1: 3, 2: 3, 3: 3}
d) No method called setdefault() exists for dictionary

Answer: b
Explanation: setdefault() is similar to get() but will set dict[key]=default if key is not
already in the dictionary.

7. What will be the output of the following Python code snippet?

a={1:"A",2:"B",3:"C"}
a.setdefault(4,"D")
print(a)
a) {1: ‘A’, 2: ‘B’, 3: ‘C’, 4: ‘D’}
b) None
c) Error
d) [1,3,6,10]

Answer: a
Explanation: setdefault() will set dict[key]=default if key is not already in the
dictionary.

8. What will be the output of the following Python code?

a={1:"A",2:"B",3:"C"}
b={4:"D",5:"E"}
a.update(b)
print(a)
a) {1: ‘A’, 2: ‘B’, 3: ‘C’}
b) Method update() doesn’t exist for dictionaries
c) {1: ‘A’, 2: ‘B’, 3: ‘C’, 4: ‘D’, 5: ‘E’}
d) {4: ‘D’, 5: ‘E’}

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Answer: c
Explanation: update() method adds dictionary b’s key-value pairs to dictionary a.
Execute in python shell to verify.

9. What will be the output of the following Python code?

a={1:"A",2:"B",3:"C"}
b=a.copy()
b[2]="D"
print(a)
a) Error, copy() method doesn’t exist for dictionaries
b) {1: ‘A’, 2: ‘B’, 3: ‘C’}
c) {1: ‘A’, 2: ‘D’, 3: ‘C’}
d) “None” is printed

Answer: b
Explanation: Changes made in the copy of the dictionary isn’t reflected in the original
one.

10. What will be the output of the following Python code?

a={1:"A",2:"B",3:"C"}
a.clear()
print(a)
a) None
b) { None:None, None:None, None:None}
c) {1:None, 2:None, 3:None}
d) { }

Answer: d
Explanation: The clear() method clears all the key-value pairs in the dictionary.

11. Which of the following isn’t true about dictionary keys?

a) More than one key isn’t allowed
b) Keys must be immutable
c) Keys must be integers
d) When duplicate keys encountered, the last assignment wins

Answer: c
Explanation: Keys of a dictionary may be any data type that is immutable.

12. What will be the output of the following Python code?

a={1:5,2:3,3:4}
a.pop(3)
print(a)
a) {1: 5}
b) {1: 5, 2: 3}
c) Error, syntax error for pop() method

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d) {1: 5, 3: 4}

Answer: b
Explanation: pop() method removes the key-value pair for the key mentioned in the
pop() method.

13. What will be the output of the following Python code?

a={1:5,2:3,3:4}
print(a.pop(4,9))
a) 9
b) 3
c) Too many arguments for pop() method
d) 4

Answer: a
Explanation: pop() method returns the value when the key is passed as an argument
and otherwise returns the default value(second argument) if the key isn’t present in the
dictionary.

14. What will be the output of the following Python code?

a={1:"A",2:"B",3:"C"}
for i in a:
print(i,end=" ")
a) 1 2 3
b) ‘A’ ‘B’ ‘C’
c) 1 ‘A’ 2 ‘B’ 3 ‘C’
d) Error, it should be: for i in a.items():

Answer: a
Explanation: The variable i iterates over the keys of the dictionary and hence the keys
are printed.

15. What will be the output of the following Python code?

>>> a={1:"A",2:"B",3:"C"}
>>> a.items()
a) Syntax error
b) dict_items([(‘A’), (‘B’), (‘C’)])
c) dict_items([(1,2,3)])
d) dict_items([(1, ‘A’), (2, ‘B’), (3, ‘C’)])

Answer: d
Explanation: The method items() returns list of tuples with each tuple having a key-
value pair.

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 Python Questions and Answers – Dictionary – 3

1. Which of the statements about dictionary values if false?

a) More than one key can have the same value
b) The values of the dictionary can be accessed as dict[key]
c) Values of a dictionary must be unique
d) Values of a dictionary can be a mixture of letters and numbers

Answer: c
Explanation: More than one key can have the same value.

2. What will be the output of the following Python code snippet?

>>> a={1:"A",2:"B",3:"C"}
>>> del a
a) method del doesn’t exist for the dictionary
b) del deletes the values in the dictionary
c) del deletes the entire dictionary
d) del deletes the keys in the dictionary

Answer: c
Explanation: del deletes the entire dictionary and any further attempt to access it will
throw an error.

3. If a is a dictionary with some key-value pairs, what does a.popitem() do?

a) Removes an arbitrary element
b) Removes all the key-value pairs
c) Removes the key-value pair for the key given as an argument
d) Invalid method for dictionary

Answer: a
Explanation: The method popitem() removes a random key-value pair.

4. What will be the output of the following Python code snippet?

total={}
def insert(items):
if items in total:
total[items] += 1
else:
total[items] = 1
insert('Apple')
insert('Ball')
insert('Apple')
print (len(total))
a) 3
b) 1
c) 2

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d) 0

Answer: c
Explanation: The insert() function counts the number of occurrences of the item being
inserted into the dictionary. There are only 2 keys present since the key ‘Apple’ is
repeated. Thus, the length of the dictionary is 2.

5. What will be the output of the following Python code snippet?

a = {}
a[1] = 1
a['1'] = 2
a[1]=a[1]+1
count = 0
for i in a:
count += a[i]
print(count)
a) 1
b) 2
c) 4
d) Error, the keys can’t be a mixture of letters and numbers

Answer: c
Explanation: The above piece of code basically finds the sum of the values of keys.

6. What will be the output of the following Python code snippet?

numbers = {}
letters = {}
comb = {}
numbers[1] = 56
numbers[3] = 7
letters[4] = 'B'
comb['Numbers'] = numbers
comb['Letters'] = letters
print(comb)
a) Error, dictionary in a dictionary can’t exist
b) ‘Numbers’: {1: 56, 3: 7}
c) {‘Numbers’: {1: 56}, ‘Letters’: {4: ‘B’}}
d) {‘Numbers’: {1: 56, 3: 7}, ‘Letters’: {4: ‘B’}}

Answer: d
Explanation: Dictionary in a dictionary can exist.

7. What will be the output of the following Python code snippet?

test = {1:'A', 2:'B', 3:'C'}
test = {}
print(len(test))

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a) 0
b) None
c) 3
d) An exception is thrown

Answer: a
Explanation: In the second line of code, the dictionary becomes an empty dictionary.
Thus, length=0.

8. What will be the output of the following Python code snippet?

test = {1:'A', 2:'B', 3:'C'}
del test[1]
test[1] = 'D'
del test[2]
print(len(test))
a) 0
b) 2
c) Error as the key-value pair of 1:’A’ is already deleted
d) 1

Answer: b
Explanation: After the key-value pair of 1:’A’ is deleted, the key-value pair of 1:’D’ is
added.

9. What will be the output of the following Python code snippet?

a = {}
a[1] = 1
a['1'] = 2
a[1.0]=4
count = 0
for i in a:
count += a[i]
print(count)
a) An exception is thrown
b) 3
c) 6
d) 2

Answer: c
Explanation: The value of key 1 is 4 since 1 and 1.0 are the same. Then, the function
count() gives the sum of all the values of the keys (2+4).

10. What will be the output of the following Python code snippet?
a={}
a['a']=1
a['b']=[2,3,4]
print(a)

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a) Exception is thrown
b) {‘b’: [2], ‘a’: 1}
c) {‘b’: [2], ‘a’: [3]}
d) {‘b’: [2, 3, 4], ‘a’: 1}

Answer: d
Explanation: Mutable members can be used as the values of the dictionary but they
cannot be used as the keys of the dictionary.

11. What will be the output of the following Python code snippet?
>>>import collections
>>> a=collections.Counter([1,1,2,3,3,4,4,4])
>>> a
a) {1,2,3,4}
b) Counter({4, 1, 3, 2})
c) Counter({4: 3, 1: 2, 3: 2, 2: 1})
d) {4: 3, 1: 2, 3: 2, 2: 1}

Answer: c
Explanation: The statement a=collections.OrderedDict() generates a dictionary with
the number as the key and the count of times the number appears as the value.

12. What will be the output of the following Python code snippet?
>>>import collections
>>> b=collections.Counter([2,2,3,4,4,4])
>>> b.most_common(1)
a) Counter({4: 3, 2: 2, 3: 1})
b) {3:1}
c) {4:3}
d) [(4, 3)]

Answer: d
Explanation: The most_common() method returns the n number key-value pairs where
the value is the most recurring.

13. What will be the output of the following Python code snippet?
>>>import collections
>>> b=collections.Counter([2,2,3,4,4,4])
>>> b.most_common(1)
a) Counter({4: 3, 2: 2, 3: 1})
b) {3:1}
c) {4:3}
d) [(4, 3)]

Answer: d
Explanation: The most_common() method returns the n number key-value pairs where
the value is the most recurring.

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14. What will be the output of the following Python code snippet?
>>> import collections
>>> a=collections.Counter([2,2,3,3,3,4])
>>> b=collections.Counter([2,2,3,4,4])
>>> a|b
a) Counter({3: 3, 2: 2, 4: 2})
b) Counter({2: 2, 3: 1, 4: 1})
c) Counter({3: 2})
d) Counter({4: 1})

Answer: a
Explanation: a|b returns the pair of keys and the highest recurring value.

15. What will be the output of the following Python code snippet?
>>> import collections
>>> a=collections.Counter([3,3,4,5])
>>> b=collections.Counter([3,4,4,5,5,5])
>>> a&b
a) Counter({3: 12, 4: 1, 5: 1})
b) Counter({3: 1, 4: 1, 5: 1})
c) Counter({4: 2})
d) Counter({5: 1})

Answer: b
Explanation: a&b returns the pair of keys and the lowest recurring value.

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 Python Questions and Answers – Dictionary – 4

1. The following Python code is invalid.

class demo(dict):
def __test__(self,key):
return []
a = demo()
a['test'] = 7
print(a)
a) True
b) False

Answer: b
Explanation: The output of the code is: {‘test’:7}.

2. What will be the output of the following Python code?

count={}
count[(1,2,4)] = 5
count[(4,2,1)] = 7
count[(1,2)] = 6
count[(4,2,1)] = 2
tot = 0
for i in count:
tot=tot+count[i]
print(len(count)+tot)
a) 25
b) 17
c) 16
d) Tuples can’t be made keys of a dictionary

Answer: c
Explanation: Tuples can be made keys of a dictionary. Length of the dictionary is 3 as
the value of the key (4,2,1) is modified to 2. The value of the variable tot is 5+6+2=13.

3. What will be the output of the following Python code?

a={}
a[2]=1
a[1]=[2,3,4]
print(a[1][1])
a) [2,3,4]
b) 3
c) 2
d) An exception is thrown

Answer: b
Explanation: Now, a={1:[2,3,4],2:1} . a[1][1] refers to second element having key 1.

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4. What will be the output of the following Python code?
>>> a={'B':5,'A':9,'C':7}
>>> sorted(a)
a) [‘A’,’B’,’C’]
b) [‘B’,’C’,’A’]
c) [5,7,9]
d) [9,5,7]

Answer: a
Explanation: Return a new sorted list of keys in the dictionary.

5. What will be the output of the following Python code?

>>> a={i: i*i for i in range(6)}
>>> a
a) Dictionary comprehension doesn’t exist
b) {0: 0, 1: 1, 2: 4, 3: 9, 4: 16, 5: 25, 6:36}
c) {0: 0, 1: 1, 4: 4, 9: 9, 16: 16, 25: 25}
d) {0: 0, 1: 1, 2: 4, 3: 9, 4: 16, 5: 25}

Answer: d
Explanation: Dictionary comprehension is implemented in the above piece of code.

6. What will be the output of the following Python code?

>>> a={}
>>> a.fromkeys([1,2,3],"check")
a) Syntax error
b) {1:”check”,2:”check”,3:”check”}
c) “check”
d) {1:None,2:None,3:None}

Answer: b
Explanation: The dictionary takes values of keys from the list and initializes it to the
default value (value given in the second parameter). Execute in Python shell to verify.

7. What will be the output of the following Python code?

>>> b={}
>>> all(b)
a) { }
b) False
c) True
d) An exception is thrown

Answer: c
Explanation: Function all() returns True if all keys of the dictionary are true or if the
dictionary is empty.

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8. If b is a dictionary, what does any(b) do?
a) Returns True if any key of the dictionary is true
b) Returns False if dictionary is empty
c) Returns True if all keys of the dictionary are true
d) Method any() doesn’t exist for dictionary

Answer: a
Explanation: Method any() returns True if any key of the dictionary is true and False if
the dictionary is empty.

9. What will be the output of the following Python code?

>>> a={"a":1,"b":2,"c":3}
>>> b=dict(zip(a.values(),a.keys()))
>>> b
a) {‘a’: 1, ‘b’: 2, ‘c’: 3}
b) An exception is thrown
c) {‘a’: ‘b’: ‘c’: }
d) {1: ‘a’, 2: ‘b’, 3: ‘c’}

Answer: d
Explanation: The above piece of code inverts the key-value pairs in the dictionary.

10. What will be the output of the following Python code?

>>> a={i: 'A' + str(i) for i in range(5)}
>>> a
a) An exception is thrown
b) {0: ‘A0’, 1: ‘A1’, 2: ‘A2’, 3: ‘A3’, 4: ‘A4’}
c) {0: ‘A’, 1: ‘A’, 2: ‘A’, 3: ‘A’, 4: ‘A’}
d) {0: ‘0’, 1: ‘1’, 2: ‘2’, 3: ‘3’, 4: ‘4’}

Answer: b
Explanation: Dictionary comprehension and string concatenation is implemented in the
above piece of code.

11. What will be the output of the following Python code?

>>> a=dict()
>>> a[1]
a) An exception is thrown since the dictionary is empty
b) ‘ ‘
c) 1
d) 0

Answer: a
Explanation: The values of a dictionary can be accessed through the keys only if the
keys exist in the dictionary.

12. What will be the output of the following Python code?

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>>> import collections
>>> a=dict()
>>> a=collections.defaultdict(int)
>>> a[1]
a) 1
b) 0
c) An exception is thrown
d) ‘ ‘

Answer: b
Explanation: The statement a=collections.defaultdict(int) gives the default value of 0
(since int data type is given within the parenthesis) even if the keys don’t exist in the
dictionary.

13. What will be the output of the following Python code?

>>> import collections
>>> a=dict()
>>> a=collections.defaultdict(str)
>>> a['A']
a) An exception is thrown since the dictionary is empty
b) ‘ ‘
c) ‘A’
d) 0

Answer: b
Explanation: The statement a=collections.defaultdict(str) gives the default value of ‘ ‘
even if the keys don’t exist in the dictionary.

14. What will be the output of the following Python code?

>>> import collections
>>> b=dict()
>>> b=collections.defaultdict(lambda: 7)
>>> b[4]
a) 4
b) 0
c) An exception is thrown
d) 7

Answer: d
Explanation: The statement a=collections.defaultdict(lambda: x) gives the default value
of x even if the keys don’t exist in the dictionary.

15. What will be the output of the following Python code?

>>> import collections
>>> a=collections.OrderedDict((str(x),x) for x in range(3))
>>> a

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a) {‘2’:2, ‘0’:0, ‘1’:1}
b) OrderedDict([(‘0’, 0), (‘1’, 1), (‘2’, 2)])
c) An exception is thrown
d) ‘ ‘

Answer: b
Explanation: The line of code a=collections.OrderedDict() generates a dictionary
satisfying the conditions given within the parenthesis and in an ascending order of the
keys.

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 Python Questions and Answers – Python Modules

1. Which of these definitions correctly describes a module?

a) Denoted by triple quotes for providing the specification of certain program elements
b) Design and implementation of specific functionality to be incorporated into a program
c) Defines the specification of how it is to be used
d) Any program that reuses code

Answer: b
Explanation: The term “module” refers to the implementation of specific functionality
to be incorporated into a program.

2. Which of the following is not an advantage of using modules?

a) Provides a means of reuse of program code
b) Provides a means of dividing up tasks
c) Provides a means of reducing the size of the program
d) Provides a means of testing individual parts of the program

Answer: c
Explanation: The total size of the program remains the same regardless of whether
modules are used or not. Modules simply divide the program.

3. Program code making use of a given module is called a ______ of the module.
a) Client
b) Docstring
c) Interface
d) Modularity

Answer: a
Explanation: Program code making use of a given module is called the client of the
module. There may be multiple clients for a module.

4. ______ is a string literal denoted by triple quotes for providing the specifications of
certain program elements.
a) Interface
b) Modularity
c) Client
d) Docstring

Answer: d
Explanation: Docstring used for providing the specifications of program elements.

5. Which of the following is true about top-down design process?

a) The details of a program design are addressed before the overall design
b) Only the details of the program are addressed
c) The overall design of the program is addressed before the details

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d) Only the design of the program is addressed

Answer: c
Explanation: Top-down design is an approach for deriving a modular design in which
the overall design.

6. In top-down design every module is broken into same number of submodules.

a) True
b) False

Answer: b
Explanation: In top-down design every module can even be broken down into different
number of submodules.

7. All modular designs are because of a top-down design process.

a) True
b) False

Answer: b
Explanation: The details of the program can be addressed before the overall design too.
Hence, all modular designs are not because of a top-down design process.

8. What will be the output of the following Python code?

#mod1
def change(a):
b=[x*2 for x in a]
print(b)
#mod2
def change(a):
b=[x*x for x in a]
print(b)
from mod1 import change
from mod2 import change
#main
s=[1,2,3]
change(s)
a) [2,4,6]
b) [1,4,9]
c)
[2,4,6]
[1,4,9]
d) There is a name clash

Answer: d
Explanation: A name clash is when two different entities with the same identifier
become part of the same scope. Since both the modules have the same function name,
there is a name clash.

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9. Which of the following isn’t true about main modules?
a) When a python file is directly executed, it is considered main module of a program
b) Main modules may import any number of modules
c) Special name given to main modules is: __main__
d) Other main modules can import main modules

Answer: d
Explanation: Main modules are not meant to be imported into other modules.

10. Which of the following is not a valid namespace?

a) Global namespace
b) Public namespace
c) Built-in namespace
d) Local namespace

Answer: b
Explanation: During a Python program execution, there are as many as three
namespaces – built-in namespace, global namespace and local namespace.

11. Which of the following is false about “import modulename” form of import?
a) The namespace of imported module becomes part of importing module
b) This form of import prevents name clash
c) The namespace of imported module becomes available to importing module
d) The identifiers in module are accessed as: modulename.identifier

Answer: a
Explanation: In the “import modulename” form of import, the namespace of imported
module becomes available to, but not part of, the importing module.

12. Which of the following is false about “from-import” form of import?

a) The syntax is: from modulename import identifier
b) This form of import prevents name clash
c) The namespace of imported module becomes part of importing module
d) The identifiers in module are accessed directly as: identifier

Answer: b
Explanation: In the “from-import” form of import, there may be name clashes because
names of the imported identifiers aren’t specified along with the module name.

13. Which of the statements about modules is false?

a) In the “from-import” form of import, identifiers beginning with two underscores are
private and aren’t imported
b) dir() built-in function monitors the items in the namespace of the main module
c) In the “from-import” form of import, all identifiers regardless of whether they are private
or public are imported
d) When a module is loaded, a compiled version of the module with file extension .pyc is

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automatically produced

Answer: c
Explanation: In the “from-import” form of import, identifiers beginning with two
underscores are private and aren’t imported.

14. What will be the output of the following Python code?

from math import factorial
print(math.factorial(5))
a) 120
b) Nothing is printed
c) Error, method factorial doesn’t exist in math module
d) Error, the statement should be: print(factorial(5))

Answer: d
Explanation: In the “from-import” form of import, the imported identifiers (in this
case factorial()) aren’t specified along with the module name.

15. What is the order of namespaces in which Python looks for an identifier?
a) Python first searches the global namespace, then the local namespace and finally the built-
in namespace
b) Python first searches the local namespace, then the global namespace and finally the built-
in namespace
c) Python first searches the built-in namespace, then the global namespace and finally the
local namespace
d) Python first searches the built-in namespace, then the local namespace and finally the
global namespace

Answer: b
Explanation: Python first searches for the local, then the global and finally the built-in
namespace.

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 Python Questions and Answers – Math module– 1
1. What is returned by math.ceil(3.4)?
a) 3
b) 4
c) 4.0
d) 3.0

Answer: b
Explanation: The ceil function returns the smallest integer that is bigger than or equal
to the number itself.

2. What is the value returned by math.floor(3.4)?

a) 3
b) 4
c) 4.0
d) 3.0

Answer: a
Explanation: The floor function returns the biggest number that is smaller than or
equal to the number itself.

3. What will be the output of print(math.copysign(3, -1))?

a) 1
b) 1.0
c) -3
d) -3.0

Answer: d
Explanation: The copysign function returns a float whose absolute value is that of the
first argument and the sign is that of the second argument.

4. What is displayed on executing print(math.fabs(-3.4))?

a) -3.4
b) 3.4
c) 3
d) -3

Answer: b
Explanation: A negative floating point number is returned as a positive floating point
number.

5. Is the output of the function abs() the same as that of the function math.fabs()?
a) sometimes
b) always
c) never
d) none of the mentioned

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Answer: a
Explanation: math.fabs() always returns a float and does not work with complex
numbers whereas the return type of abs() is determined by the type of value that is
passed to it.

6. What is the value returned by math.fact(6)?

a) 720
b) 6
c) [1, 2, 3, 6]
d) error

Answer: d
Explanation: NameError, fact() is not defined.

7. What is the value of x if x = math.factorial(0)?

a) 0
b) 1
c) error
d) none of the mentioned

Answer: b
Explanation: Factorial of 0 is 1.

8. What is math.factorial(4.0)?
a) 24
b) 1
c) error
d) none of the mentioned

Answer: a
Explanation: The factorial of 4 is returned.

9. What will be the output of print(math.factorial(4.5))?

a) 24
b) 120
c) error
d) 24.0

Answer: c
Explanation: Factorial is only defined for non-negative integers.

10. What is math.floor(0o10)?

a) 8
b) 10
c) 0
d) 9

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Answer: a
Explanation: 0o10 is 8 and floor(8) is 8.

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 Python Questions and Answers – Math module– 2

1. What does the function math.frexp(x) return?

a) a tuple containing the mantissa and the exponent of x
b) a list containing the mantissa and the exponent of x
c) a tuple containing the mantissa of x
d) a list containing the exponent of x

Answer: a
Explanation: It returns a tuple with two elements. The first element is the mantissa and
the second element is the exponent.

2. What is the result of math.fsum([.1 for i in range(20)])?

a) 2.0
b) 20
c) 2
d) 2.0000000000000004

Answer: a
Explanation: The function fsum returns an accurate floating point sum of the elements
of its argument.

3. What is the result of sum([.1 for i in range(20)])?

a) 2.0
b) 20
c) 2
d) 2.0000000000000004

Answer: d
Explanation: There is some loss of accuracy when we use sum with floating point
numbers. Hence the function fsum is preferable.

4. What is returned by math.isfinite(float(‘inf’))?

a) True
b) False
c) None
d) error

Answer: b
Explanation: float(‘inf’) is not a finite number.

5. What is returned by math.isfinite(float(‘nan’))?

a) True
b) False
c) None
d) error

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Answer: b
Explanation: float(‘nan’) is not a finite number.

6. What is x if x = math.isfinite(float(‘0.0’))?
a) True
b) False
c) None
d) error

Answer: a
Explanation: float(‘0.0’) is a finite number.

7. What will be the output of the following Python code?

>>> -float('inf') + float('inf')
a) inf
b) nan
c) 0
d) 0.0

Answer: b
Explanation: The result of float(‘inf’)-float(‘inf’) is undefined.

8. What will be the output of the following Python code?

print(math.isinf(float('-inf')))
a) error, the minus sign shouldn’t have been inside the brackets
b) error, there is no function called isinf
c) True
d) False

Answer: c
Explanation: -float(‘inf’) is the same as float(‘-inf’).

9. What is the value of x if x = math.ldexp(0.5, 1)?

a) 1
b) 2.0
c) 0.5
d) none of the mentioned

Answer: d
Explanation: The value returned by ldexp(x, y) is x * (2 ** y). In the current case x is
1.0.

10. What is returned by math.modf(1.0)?

a) (0.0, 1.0)
b) (1.0, 0.0)
c) (0.5, 1)

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d) (0.5, 1.0)

Answer: a
Explanation: The first element is the fractional part and the second element is the
integral part of the argument.

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 Python Questions and Answers – Math module– 3

1. What is the result of math.trunc(3.1)?

a) 3.0
b) 3
c) 0.1
d) 1

Answer: b
Explanation: The integral part of the floating point number is returned.

2. What is the output of print(math.trunc(‘3.1’))?

a) 3
b) 3.0
c) error
d) none of the mentioned

Answer: c
Explanation: TypeError, a string does not have __trunc__ method.

3. Which of the following is the same as math.exp(p)?

a) e ** p
b) math.e ** p
c) p ** e
d) p ** math.e

Answer: b
Explanation: math.e is the constant defined in the math module.

4. What is returned by math.expm1(p)?

a) (math.e ** p) – 1
b) math.e ** (p – 1)
c) error
d) none of the mentioned

Answer: a
Explanation: One is subtracted from the result of math.exp(p) and returned.

5. What is the default base used when math.log(x) is found?

a) e
b) 10
c) 2
d) none of the mentioned

Answer: a
Explanation: The natural log of x is returned by default.

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6. Which of the following aren’t defined in the math module?
a) log2()
b) log10()
c) logx()
d) none of the mentioned

Answer: c
Explanation: log2() and log10() are defined in the math module.

7. What is returned by int(math.pow(3, 2))?

a) 6
b) 9
c) error, third argument required
d) error, too many arguments

Answer: b
Explanation: math.pow(a, b) returns a ** b.

8. What is output of print(math.pow(3, 2))?

a) 9
b) 9.0
c) None
d) None of the mentioned

Answer: b
Explanation: math.pow() returns a floating point number.

9. What is the value of x if x = math.sqrt(4)?

a) 2
b) 2.0
c) (2, -2)
d) (2.0, -2.0)

Answer: b
Explanation: The function returns one floating point number.

10. What does math.sqrt(X, Y) do?

a) calculate the Xth root of Y
b) calculate the Yth root of X
c) error
d) return a tuple with the square root of X and Y

Answer: c
Explanation: The function takes only one argument.

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 Python Question and Answers – Random module – 1

1. To include the use of functions which are present in the random library, we must use the
option:
a) import random
b) random.h
c) import.random
d) random.random

Answer: a
Explanation: The command import random is used to import the random module,
which enables us to use the functions which are present in the random library.

2. The output of the following Python code is either 1 or 2.

import random
random.randint(1,2)
a) True
b) False

Answer: a
Explanation: The function random.randint(a,b) helps us to generate an integer between
‘a’ and ‘b’, including ‘a’ and ‘b’. In this case, since there are no integers between 1 and
2, the output will necessarily be either 1 or 2’.

3. What will be the output of the following Python code?

import random
random.choice(2,3,4)
a) An integer other than 2, 3 and 4
b) Either 2, 3 or 4
c) Error
d) 3 only

Answer: c
Explanation: The code shown above displays the incorrect syntax of the function
random.choice(). This functions takes its numeric parameter in the form of a list. Hence
the correct syntax world be: random.choice([2,3,4]).

4. What will be the output of the following Python code?

import random
random.choice([10.4, 56.99, 76])
a) Error
b) Either 10.4, 56.99 or 76
c) Any number other than 10.4, 56.99 and 76
d) 56.99 only

Answer: b
Explanation: The function random.choice(a,b,c,d) returns a random number which is

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selected from a, b, c and d. The output can be either a, b, c or d. Hence the output of the
snippet of code shown above can be either 10.4, 56.99 or 76.

5. What will be the output of the following Python function (random module has already
been imported)?
random.choice('sun')
a) sun
b) u
c) either s, u or n
d) error

Answer: c
Explanation: The above function works with alphabets just as it does with numbers.
The output of this expression will be either s, u or n.

6. What will be the output of the following Python function, assuming that the random
module has already been imported?
random.uniform(3,4)
a) Error
b) Either 3 or 4
c) Any integer other than 3 and 4
d) Any decimal value between 3 and 4

Answer: d
Explanation: This question depicts the basic difference between the functions
random.randint(a, b) and random.uniform(a, b). While random.randint(a,b) generates
an integer between ‘a’ and ‘b’, including ‘a’ and ‘b’, the function random.uniform(a,b)
generates a decimal value between ‘a’ and ‘b’.

7. What will be the output of the following Python function if the random module has
already been imported?
random.randint(3.5,7)
a) Error
b) Any integer between 3.5 and 7, including 7
c) Any integer between 3.5 and 7, excluding 7
d) The integer closest to the mean of 3.5 and 7

Answer: a
Explanation: The function random.randint() does not accept a decimal value as a
parameter. Hence the function shown above will throw an error.

8. Which of the following functions helps us to randomize the items of a list?

a) seed
b) randomise
c) shuffle
d) uniform

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Answer: c
Explanation: The function shuffle, which is included in the random module, helps us to
randomize the items of a list. This function takes the list as a parameter.

9. What will be the output of the following Python code?

random.seed(3)
random.randint(1,5)
2
random.seed(3)
random.randint(1,5)
a) 3
b) 2
c) Any integer between 1 and 5, including 1 and 5
d) Any integer between 1 and 5, excluding 1 and 5

Answer: b
Explanation: We use the seed function when we want to use the same random number
once again in our program. Hence the output of the code shown above will be 2, since 2
was generated previously following which we used the seed function.

10. What is the interval of the value generated by the function random.random(), assuming
that the random module has already been imported?
a) (0,1)
b) (0,1]
c) [0,1]
d) [0,1)

Answer: d
Explanation: The function random.random() generates a random value in the interval
[0,1), that is, including zero but excluding one.

11. What will be the output of the following Python code?

random.randrange(0,91,5)
a) 10
b) 18
c) 79
d) 95

Answer: a
Explanation: The function shown above will generate an output which is a multiple of 5
and is between 0 and 91. The only option which satisfies these criteria is 10. Hence the
only possible output of this function is 10.

12. Both the functions randint and uniform accept ____________ parameters.
a) 0
b) 1
c) 3

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d) 2

Answer: d
Explanation: Both of these functions, that is, randint and uniform are included in the
random module and both of these functions accept 2 parameters. For example:
random.uniform(a,b) where ‘a’ and ‘b’ specify the range.

13. The randrange function returns only an integer value.

a) True
b) False

Answer: a
Explanation: The function randrange returns only an integer value. Hence this
statement is true.

14. What will be the output of the following Python code?

random.randrange(1,100,10)
a) 32
b) 67
c) 91
d) 80

Answer: c
Explanation: The output of this function can be any value which is a multiple of 10,
plus 1. Hence a value like 11, 21, 31, 41…91 can be the output. Also, the value should
necessarily be between 1 and 100. The only option which satisfies this criteria is 91.

15. What will be the output of the following Python function, assuming that the random
library has already been included?
random.shuffle[1,2,24]
a) Randomized list containing the same numbers in any order
b) The same list, that is [1,2,24]
c) A list containing any random numbers between 1 and 24
d) Error

Answer: d
Explanation: The function shown above will result in an error because this is the
incorrect syntax for the usage of the function shuffle(). The list should be previously
declared and then passed to this function to get an output.
An example of the correct syntax:
>>> l=['a','b','c','d']
>>> random.shuffle(l)
>>> print(l)

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 Python Questions and Answers – Random Module – 2

1. What the does random.seed(3) return?

a) True
b) None
c) 3
d) 1

Answer: b
Explanation: The function random.seed() always returns a None.

2. Which of the following cannot be returned by random.randrange(4)?

a) 0
b) 3
c) 2.3
d) none of the mentioned

Answer: c
Explanation: Only integers can be returned.

3. Which of the following is equivalent to random.randrange(3)?

a) range(3)
b) random.choice(range(0, 3))
c) random.shuffle(range(3))
d) random.select(range(3))

Answer: b
Explanation: It returns one number from the given range.

4. The function random.randint(4) can return only one of the following values. Which?
a) 4
b) 3.4
c) error
d) 5

Answer: c
Explanation: Error, the function takes two arguments.

5. Which of the following is equivalent to random.randint(3, 6)?

a) random.choice([3, 6])
b) random.randrange(3, 6)
c) 3 + random.randrange(3)
d) 3 + random.randrange(4)

Answer: d
Explanation: random.randint(3, 6) can return any one of 3, 4, 5 and 6.

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6. Which of the following will not be returned by random.choice(“1 ,”)?
a) 1
b) (space)
c) ,
d) none of the mentioned

Answer: d
Explanation: Any of the characters present in the string may be returned.

7. Which of the following will never be displayed on executing print(random.choice({0: 1, 2:

3}))?
a) 0
b) 1
c) KeyError: 1
d) none of the mentioned

Answer: a
Explanation: It will not print 0 but dict[0] i.e. 1 may be printed.

8. What does random.shuffle(x) do when x = [1, 2, 3]?

a) error
b) do nothing, it is a placeholder for a function that is yet to be implemented
c) shuffle the elements of the list in-place
d) none of the mentioned

Answer: c
Explanation: The elements of the list passed to it are shuffled in-place.

9. Which type of elements are accepted by random.shuffle()?

a) strings
b) lists
c) tuples
d) integers

Answer: b
Explanation: Strings and tuples are immutable and an integer has no len().

10. What is the range of values that random.random() can return?

a) [0.0, 1.0]
b) (0.0, 1.0]
c) (0.0, 1.0)
d) [0.0, 1.0)

Answer: d
Explanation: Any number that is greater than or equal to 0.0 and lesser than 1.0 can be
returned.

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 CHAPTER-3 WORKING WITH FUNCTIONS

1. Which of the following is the use of function in python?

a) Functions are reusable pieces of programs
b) Functions don’t provide better modularity for your application
c) you can’t also create your own functions
d) All of the mentioned

Answer: a
Explanation: Functions are reusable pieces of programs. They allow you to give a name to a
block of statements, allowing you to run that block using the specified name anywhere in
your program and any number of times.

2. Which keyword is used for function?

a) Fun
b) Define
c) Def
d) Function

Answer: c
Explanation: None.

3. What will be the output of the following Python code?

1. def sayHello():
2. print('Hello World!')
3. sayHello()
4. sayHello()
a)
Hello World!
Hello World!
b)
'Hello World!'
'Hello World!'
c)
Hello
Hello
d) None of the mentioned

Answer: a
Explanation: Functions are defined using the def keyword. After this keyword comes an
identifier name for the function, followed by a pair of parentheses which may enclose some
names of variables, and by the final colon that ends the line. Next follows the block of
statements that are part of this function.
1. def sayHello():
2. print('Hello World!') # block belonging to the function
3. # End of function #

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4.
5. sayHello() # call the function
6. sayHello() # call the function again

4. What will be the output of the following Python code?

1. def printMax(a, b):
2. if a > b:
3. print(a, 'is maximum')
4. elif a == b:
5. print(a, 'is equal to', b)
6. else:
7. print(b, 'is maximum')
8. printMax(3, 4)
a) 3
b) 4
c) 4 is maximum
d) None of the mentioned

Answer: c
Explanation: Here, we define a function called printMax that uses two parameters called a
and b. We find out the greater number using a simple if..else statement and then print the
bigger number.

5. What will be the output of the following Python code?

1. x = 50
2. def func(x):
3. print('x is', x)
4. x=2
5. print('Changed local x to', x)
6. func(x)
7. print('x is now', x)
a) x is now 50
b) x is now 2
c) x is now 100
d) None of the mentioned

Answer: a
Explanation: The first time that we print the value of the name x with the first line in the
function’s body, Python uses the value of the parameter declared in the main block, above
the function definition.
Next, we assign the value 2 to x. The name x is local to our function. So, when we change
the value of x in the function, the x defined in the main block remains unaffected.
With the last print function call, we display the value of x as defined in the main block,
thereby confirming that it is actually unaffected by the local assignment within the
previously called function.

6. What will be the output of the following Python code?

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1. x = 50
2. def func():
3. global x
4. print('x is', x)
5. x=2
6. print('Changed global x to', x)
7. func()
8. print('Value of x is', x)
a)
x is 50
Changed global x to 2
Value of x is 50
b)
x is 50
Changed global x to 2
Value of x is 2
c)
x is 50
Changed global x to 50
Value of x is 50
d) None of the mentioned

Answer: b
Explanation: The global statement is used to declare that x is a global variable – hence, when
we assign a value to x inside the function, that change is reflected when we use the value of x
in the main block.

7. What will be the output of the following Python code?

1. def say(message, times = 1):
2. print(message * times)
3. say('Hello')
4. say('World', 5)
a)
Hello
WorldWorldWorldWorldWorld
b)
Hello
World 5
c)
Hello
World,World,World,World,World
d)
Hello
HelloHelloHelloHelloHello

Answer: a
Explanation: For some functions, you may want to make some parameters optional and use

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 default values in case the user does not want to provide values for them. This is done with
the help of default argument values. You can specify default argument values for parameters
by appending to the parameter name in the function definition the assignment operator (=)
followed by the default value.
The function named say is used to print a string as many times as specified. If we don’t
supply a value, then by default, the string is printed just once. We achieve this by specifying
a default argument value of 1 to the parameter times.
In the first usage of say, we supply only the string and it prints the string once. In the second
usage of say, we supply both the string and an argument 5 stating that we want to say the
string message 5 times.

8. What will be the output of the following Python code?

1. def func(a, b=5, c=10):
2. print('a is', a, 'and b is', b, 'and c is', c)
3.
4. func(3, 7)
5. func(25, c = 24)
6. func(c = 50, a = 100)
a)
a is 7 and b is 3 and c is 10
a is 25 and b is 5 and c is 24
a is 5 and b is 100 and c is 50
b)
a is 3 and b is 7 and c is 10
a is 5 and b is 25 and c is 24
a is 50 and b is 100 and c is 5
c)
a is 3 and b is 7 and c is 10
a is 25 and b is 5 and c is 24
a is 100 and b is 5 and c is 50
d) None of the mentioned

Answer: c
Explanation: If you have some functions with many parameters and you want to specify only
some of them, then you can give values for such parameters by naming them – this is called
keyword arguments – we use the name (keyword) instead of the position (which we have
been using all along) to specify the arguments to the function.
The function named func has one parameter without a default argument value, followed by
two parameters with default argument values.
In the first usage, func(3, 7), the parameter a gets the value 3, the parameter b gets the value
7 and c gets the default value of 10.
In the second usage func(25, c=24), the variable a gets the value of 25 due to the position of
the argument. Then, the parameter c gets the value of 24 due to naming i.e. keyword
arguments. The variable b gets the default value of 5.
In the third usage func(c=50, a=100), we use keyword arguments for all specified values.
Notice that we are specifying the value for parameter c before that for a even though a is
defined before c in the function definition.

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 9. What will be the output of the following Python code?
1. def maximum(x, y):
2. if x > y:
3. return x
4. elif x == y:
5. return 'The numbers are equal'
6. else:
7. return y
8.
9. print(maximum(2, 3))
a) 2
b) 3
c) The numbers are equal
d) None of the mentioned

Answer: b
Explanation: The maximum function returns the maximum of the parameters, in this case the
numbers supplied to the function. It uses a simple if..else statement to find the greater value
and then returns that value.

10. Which of the following is a feature of DocString?

a) Provide a convenient way of associating documentation with Python modules, functions,
classes, and methods
b) All functions should have a docstring
c) Docstrings can be accessed by the __doc__ attribute on objects
d) All of the mentioned

Answer: d
Explanation: Python has a nifty feature called documentation strings, usually referred to by
its shorter name docstrings. DocStrings are an important tool that you should make use of
since it helps to document the program better and makes it easier to understand.

11. Which are the advantages of functions in python?

a) Reducing duplication of code
b) Decomposing complex problems into simpler pieces
c) Improving clarity of the code
d) All of the mentioned

Answer: d
Explanation: None.

12. What are the two main types of functions?

a) Custom function
b) Built-in function & User defined function
c) User function

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d) System function

Answer: b
Explanation: Built-in functions and user defined ones. The built-in functions are part of the
Python language. Examples are: dir(), len() or abs(). The user defined functions are functions
created with the def keyword.

13. Where is function defined?

a) Module
b) Class
c) Another function
d) All of the mentioned

Answer: d
Explanation: Functions can be defined inside a module, a class or another function.

14. What is called when a function is defined inside a class?

a) Module
b) Class
c) Another function
d) Method

Answer: d
Explanation: None.

15. Which of the following is the use of id() function in python?

a) Id returns the identity of the object
b) Every object doesn’t have a unique id
c) All of the mentioned
d) None of the mentioned

Answer: a
Explanation: Each object in Python has a unique id. The id() function returns the object’s id.

16. Which of the following refers to mathematical function?

a) sqrt
b) rhombus
c) add
d) rhombus

Answer: a
Explanation: Functions that are always available for usage, functions that are contained
within external modules, which must be imported and functions defined by a programmer
with the def keyword.
Eg: math import sqrt
A sqrt() function is imported from the math module.

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 17. What will be the output of the following Python code?
1. def cube(x):
2. return x * x * x
3. x = cube(3)
4. print x
a) 9
b) 3
c) 27
d) 30

Answer: c
Explanation: A function is created to do a specific task. Often there is a result from such a
task. The return keyword is used to return values from a function. A function may or may not
return a value. If a function does not have a return keyword, it will send a none value.

18. What will be the output of the following Python code?

1. def C2F(c):
2. return c * 9/5 + 32
3. print C2F(100)
4. print C2F(0)
a)
212
32
b)
314
24
c)
567
98
d) None of the mentioned

Answer: a
Explanation: The code shown above is used to convert a temperature in degree celsius to
fahrenheit.

19. What will be the output of the following Python code?

1. def power(x, y=2):
2. r=1
3. for i in range(y):
4. r=r*x
5. return r
6. print power(3)
7. print power(3, 3)
a)
212
32
b)

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 9
27
c)
567
98
d) None of the mentioned

Answer: b
Explanation: The arguments in Python functions may have implicit values. An implicit value
is used, if no value is provided. Here we created a power function. The function has one
argument with an implicit value. We can call the function with one or two arguments.

20. What will be the output of the following Python code?

1. def sum(*args):
2. '''Function returns the sum
3. of all values'''
4. r = 0
5. for i in args:
6. r += i
7. return r
8. print sum.__doc__
9. print sum(1, 2, 3)
10. print sum(1, 2, 3, 4, 5)
a)
6
15
b)
6
100
c)
123
12345
d) None of the mentioned

Answer: a
Explanation: We use the * operator to indicate, that the function will accept arbitrary number
of arguments. The sum() function will return the sum of all arguments. The first string in the
function body is called the function documentation string. It is used to document the
function. The string must be in triple quotes.

21. Python supports the creation of anonymous functions at runtime, using a construct called
__________
a) lambda
b) pi
c) anonymous
d) none of the mentioned

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 Answer: a
Explanation: Python supports the creation of anonymous functions (i.e. functions that are not
bound to a name) at runtime, using a construct called lambda. Lambda functions are
restricted to a single expression. They can be used wherever normal functions can be used.

22. What will be the output of the following Python code?

1. y = 6
2. z = lambda x: x * y
3. print z(8)
a) 48
b) 14
c) 64
d) None of the mentioned

Answer: a
Explanation: The lambda keyword creates an anonymous function. The x is a parameter, that
is passed to the lambda function. The parameter is followed by a colon character. The code
next to the colon is the expression that is executed, when the lambda function is called. The
lambda function is assigned to the z variable.
The lambda function is executed. The number 8 is passed to the anonymous function and it
returns 48 as the result. Note that z is not a name for this function. It is only a variable to
which the anonymous function was assigned.

23. What will be the output of the following Python code?

1. lamb = lambda x: x ** 3
2. print(lamb(5))
a) 15
b) 555
c) 125
d) None of the mentioned

Answer: c
Explanation: None.

24. Does Lambda contains return statements?

a) True
b) False

Answer: b
Explanation: lambda definition does not include a return statement. it always contains an
expression which is returned. Also note that we can put a lambda definition anywhere a
function is expected. We don’t have to assign it to a variable at all.

25. Lambda is a statement.

a) True
b) False

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 Answer: b
Explanation: lambda is an anonymous function in Python. Hence this statement is false.

26. Lambda contains block of statements.

a) True
b) False

Answer: b
Explanation: None.

27. What will be the output of the following Python code?

1. def f(x, y, z): return x + y + z
2. f(2, 30, 400)
a) 432
b) 24000
c) 430
d) No output

Answer: a
Explanation: None.

28. What will be the output of the following Python code?

1. def writer():
2. title = 'Sir'
3. name = (lambda x:title + ' ' + x)
4. return name
5.
6. who = writer()
7. who('Arthur')
a) Arthur Sir
b) Sir Arthur
c) Arthur
d) None of the mentioned

Answer: b
Explanation: None.

29. What will be the output of the following Python code?

1. L = [lambda x: x ** 2,
2. lambda x: x ** 3,
3. lambda x: x ** 4]
4.
5. for f in L:
6. print(f(3))
a)
27
81

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 343
b)
6
9
12
c)
9
27
81
d) None of the mentioned

Answer: c
Explanation: None.

30. What will be the output of the following Python code?

1. min = (lambda x, y: x if x < y else y)
2. min(101*99, 102*98)
a) 9997
b) 9999
c) 9996
d) None of the mentioned

Answer: c
Explanation: None.

31. What is a variable defined outside a function referred to as?

a) A static variable
b) A global variable
c) A local variable
d) An automatic variable

Answer: b
Explanation: The value of a variable defined outside all function definitions is referred to as
a global variable and can be used by multiple functions of the program.

32. What is a variable defined inside a function referred to as?

a) A global variable
b) A volatile variable
c) A local variable
d) An automatic variable

Answer: c
Explanation: The variable inside a function is called as local variable and the variable
definition is confined only to that function.

33. What will be the output of the following Python code?

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i=0
def change(i):
i=i+1
return i
change(1)
print(i)
a) 1
b) Nothing is displayed
c) 0
d) An exception is thrown

Answer: c
Explanation: Any change made in to an immutable data type in a function isn’t reflected
outside the function.

34. What will be the output of the following Python code?

def a(b):
b = b + [5]

c = [1, 2, 3, 4]
a(c)
print(len(c))
a) 4
b) 5
c) 1
d) An exception is thrown

Answer: b
Explanation: Since a list is mutable, any change made in the list in the function is reflected
outside the function.

35. What will be the output of the following Python code?

a=10
b=20
def change():
global b
a=45
b=56
change()
print(a)
print(b)
a)
10
56
b)
45
56

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c)
10
20
d) Syntax Error

Answer: a
Explanation: The statement “global b” allows the global value of b to be accessed and
changed. Whereas the variable a is local and hence the change isn’t reflected outside the
function.

36. What will be the output of the following Python code?

def change(i = 1, j = 2):
i=i+j
j=j+1
print(i, j)
change(j = 1, i = 2)
a) An exception is thrown because of conflicting values
b) 1 2
c) 3 3
d) 3 2

Answer: d
Explanation: The values given during function call is taken into consideration, that is, i=2
and j=1.

37. What will be the output of the following Python code?

def change(one, *two):
print(type(two))
change(1,2,3,4)
a) Integer
b) Tuple
c) Dictionary
d) An exception is thrown

Answer: b
Explanation: The parameter two is a variable parameter and consists of (2,3,4). Hence the
data type is tuple.

38. If a function doesn’t have a return statement, which of the following does the function
return?
a) int
b) null
c) None
d) An exception is thrown without the return statement

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Answer: c
Explanation: A function can exist without a return statement and returns None if the function
doesn’t have a return statement.

39. What will be the output of the following Python code?

def display(b, n):
while n > 0:
print(b,end="")
n=n-1
display('z',3)
a) zzz
b) zz
c) An exception is executed
d) Infinite loop

Answer: a
Explanation: The loop runs three times and ‘z’ is printed each time.

40. What will be the output of the following Python code?

def find(a, **b):
print(type(b))
find('letters',A='1',B='2')
a) String
b) Tuple
c) Dictionary
d) An exception is thrown

Answer: c
Explanation: b combines the remaining parameters into a dictionary.

41. Which of the following functions is a built-in function in python?

a) seed()
b) sqrt()
c) factorial()
d) print()

Answer: d
Explanation: The function seed is a function which is present in the random module. The
functions sqrt and factorial are a part of the math module. The print function is a built-in
function which prints a value directly to the system output.
42. What will be the output of the following Python expression?
round(4.576)
a) 4.5
b) 5
c) 4
d) 4.6

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Answer: b
Explanation: This is a built-in function which rounds a number to give precision in decimal
digits. In the above case, since the number of decimal places has not been specified, the
decimal number is rounded off to a whole number. Hence the output will be 5.

43. The function pow(x,y,z) is evaluated as:

a) (x**y)**z
b) (x**y) / z
c) (x**y) % z
d) (x**y)*z

Answer: c
Explanation: The built-in function pow() can accept two or three arguments. When it takes in
two arguments, they are evaluated as x**y. When it takes in three arguments, they are
evaluated as (x**y)%z.

44. What will be the output of the following Python function?

all([2,4,0,6])
a) Error
b) True
c) False
d) 0

Answer: c
Explanation: The function all returns false if any one of the elements of the iterable is zero
and true if all the elements of the iterable are non zero. Hence the output of this function will
be false.

45. What will be the output of the following Python expression?

round(4.5676,2)?
a) 4.5
b) 4.6
c) 4.57
d) 4.56

Answer: c
Explanation: The function round is used to round off the given decimal number to the
specified decimal places. In this case, the number should be rounded off to two decimal
places. Hence the output will be 4.57.

46. What will be the output of the following Python function?

any([2>8, 4>2, 1>2])
a) Error
b) True
c) False
d) 4>2

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Answer: b
Explanation: The built-in function any() returns true if any or more of the elements of the
iterable is true (non zero), If all the elements are zero, it returns false.

47. What will be the output of the following Python function?

import math
abs(math.sqrt(25))
a) Error
b) -5
c) 5
d) 5.0

Answer: d
Explanation: The abs() function prints the absolute value of the argument passed. For
example: abs(-5)=5. Hence, in this case we get abs(5.0)=5.0.

48. What will be the output of the following Python function?

sum(2,4,6)
sum([1,2,3])
a) Error, 6
b) 12, Error
c) 12, 6
d) Error, Error

Answer: a
Explanation: The first function will result in an error because the function sum() is used to
find the sum of iterable numbers. Hence the outcomes will be Error and 6 respectively.

49. What will be the output of the following Python function?

all(3,0,4.2)
a) True
b) False
c) Error
d) 0

Answer: c
Explanation: The function all() returns ‘True’ if any one or more of the elements of the
iterable are non zero. In the above case, the values are not iterable, hence an error is thrown.

50. What will be the output of the following Python function?

min(max(False,-3,-4), 2,7)
a) 2
b) False
c) -3
d) -4

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Answer: b
Explanation: The function max() is being used to find the maximum value from among -3, -4
and false. Since false amounts to the value zero, hence we are left with min(0, 2, 7) Hence
the output is 0 (false).

51. What will be the output of the following Python functions?

chr(‘97’)
chr(97)
a)
a
Error
b)
‘a’
a
c)
Error
a
d)
Error
Error

Answer: c
Explanation: The built-in function chr() returns the alphabet corresponding to the value given
as an argument. This function accepts only integer type values. In the first function, we have
passed a string. Hence the first function throws an error.

52. What will be the output of the following Python function?

complex(1+2j)
a) Error
b) 1
c) 2j
d) 1+2j

Answer: d
Explanation: The built-in function complex() returns the argument in a complex form. Hence
the output of the function shown above will be 1+2j.

53. What is the output of the function complex()?

a) 0j
b) 0+0j
c) 0
d) Error

Answer: a
Explanation: The complex function returns 0j if both of the arguments are omitted, that is, if
the function is in the form of complex() or complex(0), then the output will be 0j.

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54. The function divmod(a,b), where both ‘a’ and ‘b’ are integers is evaluated as:
a) (a%b, a//b)
b) (a//b, a%b)
c) (a//b, a*b)
d) (a/b, a%b)

Answer: b
Explanation: The function divmod(a,b) is evaluated as a//b, a%b, if both ‘a’ and ‘b’ are
integers.

55. What will be the output of the following Python function?

divmod(10.5,5)
divmod(2.4,1.2)
a)
(2.00, 0.50)
(2.00, 0.00)
b)
(2, 0.5)
(2, 0)
c)
(2.0, 0.5)
(2.0, 0.0)
d)
(2, 0.5)
(2)

Answer: c
Explanation: See python documentation for the function divmod.

56. The function complex(‘2-3j’) is valid but the function complex(‘2 – 3j’) is invalid.
a) True
b) False

Answer: a
Explanation: When converting from a string, the string must not contain any blank spaces
around the + or – operator. Hence the function complex(‘2 – 3j’) will result in an error.

57. What will be the output of the following Python function?

list(enumerate([2, 3]))
a) Error
b) [(1, 2), (2, 3)]
c) [(0, 2), (1, 3)]
d) [(2, 3)]

Answer: c
Explanation: The built-in function enumerate() accepts an iterable as an argument. The

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function shown in the above case returns containing pairs of the numbers given, starting
from 0. Hence the output will be: [(0, 2), (1,3)].

58. What will be the output of the following Python functions?

x=3
eval('x^2')
a) Error
b) 1
c) 9
d) 6

Answer: b
Explanation: The function eval is use to evaluate the expression that it takes as an argument.
In the above case, the eval() function is used to perform XOR operation between 3 and 2.
Hence the output is 1.

59. What will be the output of the following Python functions?

float('1e-003')
float('2e+003')
a)
3.00
300
b)
0.001
2000.0
c)
0.001
200
d)
Error
2003

Answer: b
Explanation: The output of the first function will be 0.001 and that of the second function
will be 2000.0. The first function created a floating point number up to 3 decimal places and
the second function adds 3 zeros after the given number.

60. Which of the following functions does not necessarily accept only iterables as
arguments?
a) enumerate()
b) all()
c) chr()
d) max()

Answer: c
Explanation: The functions enumerate(), all() and max() accept iterables as arguments

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whereas the function chr() throws an error on receiving an iterable as an argument. Also note
that the function chr() accepts only integer values.

61. Which of the following functions accepts only integers as arguments?

a) ord()
b) min()
c) chr()
d) any()

Answer: c
Explanation: The function chr() accepts only integers as arguments. The function ord()
accepts only strings. The functions min() and max() can accept floating point as well as
integer arguments.

62. Suppose there is a list such that: l=[2,3,4]. If we want to print this list in reverse order,
which of the following methods should be used?
a) reverse(l)
b) list(reverse[(l)])
c) reversed(l)
d) list(reversed(l))

Answer: d
Explanation: The built-in function reversed() can be used to reverse the elements of a list.
This function accepts only an iterable as an argument. To print the output in the form of a
list, we use: list(reversed(l)). The output will be: [4,3,2].

63. What will be the output of the following Python function?

float(' -12345\n')
(Note that the number of blank spaces before the number is 5)
-12345.0 (5 blank spaces before the number) a)
b) -12345.0
c) Error
d) -12345.000000000…. (infinite decimal places)

Answer: b
Explanation: The function float() will remove all the blank spaces and convert the integer to
a floating point number. Hence the output will be: -12345.0.

64. What will be the output of the following Python function?

ord(65)
ord(‘A’)
a)
A
65
b)
Error
65

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c)
A
Error
d)
Error
Error

Answer: b
Explanation: The built-in function ord() is used to return the ASCII value of the alphabet
passed to it as an argument. Hence the first function results in an error and the output of the
second function is 65.

65. What will be the output of the following Python function?

float(‘-infinity’)
float(‘inf’)
a)
–inf
inf
b)
–infinity
inf
c)
Error
Error
d)
Error
Junk value

Answer: a
Explanation: The output of the first function will be –inf and that of the second function will
be inf.

66. Which of the following functions will not result in an error when no arguments are
passed to it?
a) min()
b) divmod()
c) all()
d) float()

Answer: d
Explanation: The built-in functions min(), max(), divmod(), ord(), any(), all() etc throw an
error when no arguments are passed to them. However there are some built-in functions like
float(), complex() etc which do not throw an error when no arguments are passed to them.
The output of float() is 0.0.

67. What will be the output of the following Python function?

hex(15)

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a) f
b) 0xF
c) 0Xf
d) 0xf

Answer: d
Explanation: The function hex() is used to convert the given argument into its hexadecimal
representation, in lower case. Hence the output of the function hex(15) is 0xf.

68. Which of the following functions does not throw an error?

a) ord()
b) ord(‘ ‘)
c) ord(”)
d) ord(“”)

Answer: b
Explanation: The function ord() accepts a character. Hence ord(), ord(”) and ord(“”) throw
errors. However the function ord(‘ ‘) does not throw an error because in this case, we are
actually passing a blank space as an argument. The output of ord(‘ ‘) is 32 (ASCII value
corresponding to blank space).
69. What will be the output of the following Python function?
len(["hello",2, 4, 6])
a) 4
b) 3
c) Error
d) 6

Answer: a
Explanation: The function len() returns the length of the number of elements in the iterable.
Therefore the output of the function shown above is 4.

70. What will be the output of the following Python function?

oct(7)
oct(‘7’)
a)
Error
07
b)
0o7
Error
c)
0o7
Error
d)
07
0o7

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Answer: c
Explanation: The function oct() is used to convert its argument into octal form. This function
does not accept strings. Hence the second function results in an error while the output of the
first function is 0o7.

71. What is the type of each element in sys.argv?

a) set
b) list
c) tuple
d) string

Answer: d
Explanation: It is a list of strings.

72. What is the length of sys.argv?

a) number of arguments
b) number of arguments + 1
c) number of arguments – 1
d) none of the mentioned

Answer: b
Explanation: The first argument is the name of the program itself. Therefore the length of
sys.argv is one more than the number arguments.

73. What will be the output of the following Python code?

def foo(k):
k[0] = 1
q = [0]
foo(q)
print(q)
a) [0]
b) [1]
c) [1, 0]
d) [0, 1]

Answer: b
Explanation: Lists are passed by reference.

74. How are keyword arguments specified in the function heading?

a) one-star followed by a valid identifier
b) one underscore followed by a valid identifier
c) two stars followed by a valid identifier
d) two underscores followed by a valid identifier

Answer: c
Explanation: Refer documentation.

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75. How many keyword arguments can be passed to a function in a single function call?
a) zero
b) one
c) zero or more
d) one or more

Answer: c
Explanation: Zero keyword arguments may be passed if all the arguments have default
values.

76. What will be the output of the following Python code?

def foo(fname, val):
print(fname(val))
foo(max, [1, 2, 3])
foo(min, [1, 2, 3])
a) 3 1
b) 1 3
c) error
d) none of the mentioned

Answer: a
Explanation: It is possible to pass function names as arguments to other functions.

77. What will be the output of the following Python code?

def foo():
return total + 1
total = 0
print(foo())
a) 0
b) 1
c) error
d) none of the mentioned

Answer: b
Explanation: It is possible to read the value of a global variable directly.

78. What will be the output of the following Python code?

def foo():
total += 1
return total
total = 0
print(foo())
a) 0
b) 1
c) error
d) none of the mentioned

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Answer: c
Explanation: It is not possible to change the value of a global variable without explicitly
specifying it.

79. What will be the output of the following Python code?

def foo(x):
x = ['def', 'abc']
return id(x)
q = ['abc', 'def']
print(id(q) == foo(q))
a) True
b) False
c) None
d) Error

Answer: b
Explanation: A new object is created in the function.

80. What will be the output of the following Python code?

def foo(i, x=[]):
x.append(i)
return x
for i in range(3):
print(foo(i))
a) [0] [1] [2]
b) [0] [0, 1] [0, 1, 2]
c) [1] [2] [3]
d) [1] [1, 2] [1, 2, 3]

Answer: b
Explanation: When a list is a default value, the same list will be reused.

81. What will be the output of the following Python code?

def foo(k):
k = [1]
q = [0]
foo(q)
print(q)
a) [0]
b) [1]
c) [1, 0]
d) [0, 1]

Answer: a
Explanation: A new list object is created in the function and the reference is lost. This can be
checked by comparing the id of k before and after k = [1].

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82. How are variable length arguments specified in the function heading?
a) one star followed by a valid identifier
b) one underscore followed by a valid identifier
c) two stars followed by a valid identifier
d) two underscores followed by a valid identifier

Answer: a
Explanation: Refer documentation.
83. Which module in the python standard library parses options received from the command
line?
a) getopt
b) os
c) getarg
d) main

Answer: a
Explanation: getopt parses options received from the command line.

84. What is the type of sys.argv?

a) set
b) list
c) tuple
d) string

Answer: b
Explanation: It is a list of elements.

85. What is the value stored in sys.argv[0]?

a) null
b) you cannot access it
c) the program’s name
d) the first argument

Answer: c
Explanation: Refer documentation.

86. How are default arguments specified in the function heading?

a) identifier followed by an equal to sign and the default value
b) identifier followed by the default value within backticks (“)
c) identifier followed by the default value within square brackets ([])
d) identifier

Answer: a
Explanation: Refer documentation.

87. How are required arguments specified in the function heading?

a) identifier followed by an equal to sign and the default value

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b) identifier followed by the default value within backticks (“)
c) identifier followed by the default value within square brackets ([])
d) identifier

Answer: d
Explanation: Refer documentation.

88. What will be the output of the following Python code?

def foo(x):
x[0] = ['def']
x[1] = ['abc']
return id(x)
q = ['abc', 'def']
print(id(q) == foo(q))
a) True
b) False
c) None
d) Error

Answer: a
Explanation: The same object is modified in the function.

89. Where are the arguments received from the command line stored?
a) sys.argv
b) os.argv
c) argv
d) none of the mentioned

Answer: a
Explanation: Refer documentation.

90. What will be the output of the following Python code?

def foo(i, x=[]):
x.append(x.append(i))
return x
for i in range(3):
y = foo(i)
print(y)
a) [[[0]], [[[0]], [1]], [[[0]], [[[0]], [1]], [2]]]
b) [[0], [[0], 1], [[0], [[0], 1], 2]]
c) [0, None, 1, None, 2, None]
d) [[[0]], [[[0]], [1]], [[[0]], [[[0]], [1]], [2]]]

Answer: c
Explanation: append() returns None.

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91. What will be the output of the following Python code?
def f1():
x=15
print(x)
x=12
f1()
a) Error
b) 12
c) 15
d) 1512

Answer: c
Explanation: In the code shown above, x=15 is a local variable whereas x=12 is a global
variable. Preference is given to local variable over global variable. Hence the output of the
code shown above is 15.

92. What will be the output of the following Python code?

def f1():
x=100
print(x)
x=+1
f1()
a) Error
b) 100
c) 101
d) 99

Answer: b
Explanation: The variable x is a local variable. It is first printed and then modified. Hence
the output of this code is 100.

93. What will be the output of the following Python code?

def san(x):
print(x+1)
x=-2
x=4
san(12)
a) 13
b) 10
c) 2
d) 5

Answer: a
Explanation: The value passed to the function san() is 12. This value is incremented by one
and printed. Hence the output of the code shown above is 13.

94. What will be the output of the following Python code?

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def f1():
global x
x+=1
print(x)
x=12
print("x")
a) Error
b) 13
c)
13
x
d) x

Answer: d
Explanation: In the code shown above, the variable ‘x’ is declared as global within the
function. Hence the output is ‘x’. Had the variable ‘x’ been a local variable, the output would
have been:
13
x

95. What will be the output of the following Python code?

def f1(x):
global x
x+=1
print(x)
f1(15)
print("hello")
a) error
b) hello
c) 16
d)
16
hello

Answer: a
Explanation: The code shown above will result in an error because ‘x’ is a global variable.
Had it been a local variable, the output would be: 16
hello

96. What will be the output of the following Python code?

x=12
def f1(a,b=x):
print(a,b)
x=15
f1(4)

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a) Error
b) 12 4
c) 4 12
d) 4 15

Answer: c
Explanation: At the time of leader processing, the value of ‘x’ is 12. It is not modified later.
The value passed to the function f1 is 4. Hence the output of the code shown above is 4 12.

97. What will be the output of the following Python code?

def f():
global a
print(a)
a = "hello"
print(a)
a = "world"
f()
print(a)
a)
hello
hello
world
b)
world
hello
hello
c)
hello
world
world
d)
world
hello
world

Answer: b
Explanation: Since the variable ‘a’ has been explicitly specified as a global variable, the
value of a passed to the function is ‘world’. Hence the output of this code is:
world
hello
hello

98. What will be the output of the following Python code?

def f1(a,b=[]):
b.append(a)
return b
print(f1(2,[3,4]))

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a) [3,2,4]
b) [2,3,4]
c) Error
d) [3,4,2]

Answer: d
Explanation: In the code shown above, the integer 2 is appended to the list [3,4]. Hence the
output of the code is [3,4,2]. Both the variables a and b are local variables.

99. What will be the output of the following Python code?

def f(p, q, r):
global s
p = 10
q = 20
r = 30
s = 40
print(p,q,r,s)
p,q,r,s = 1,2,3,4
f(5,10,15)
a) 1 2 3 4
b) 5 10 15 4
c) 10 20 30 40
d) 5 10 15 40

Answer: c
Explanation: The above code shows a combination of local and global variables. The output
of this code is: 10 20 30 40

100. What will be the output of the following Python code?

def f(x):
print("outer")
def f1(a):
print("inner")
print(a,x)
f(3)
f1(1)
a)
outer
error
b)
inner
error
c)
outer
inner
d) error

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Answer: a
Explanation: The error will be caused due to the statement f1(1) because the function is
nested. If f1(1) had been called inside the function, the output would have been different and
there would be no error.

101. What will be the output of the following Python code?

x=5
def f1():
global x
x=4
def f2(a,b):
global x
return a+b+x
f1()
total = f2(1,2)
print(total)
a) Error
b) 7
c) 8
d) 15

Answer: b
Explanation: In the code shown above, the variable ‘x’ has been declared as a global variable
under both the functions f1 and f2. The value returned is a+b+x = 1+2+4 = 7.

102. What will be the output of the following Python code?

x=100
def f1():
global x
x=90
def f2():
global x
x=80
print(x)
a) 100
b) 90
c) 80
d) Error

Answer: a
Explanation: The output of the code shown above is 100. This is because the variable ‘x’ has
been declared as global within the functions f1 and f2.

103. Read the following Python code carefully and point out the global variables?
y, z = 1, 2
def f():
global x

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 x = y+z
a) x
b) y and z
c) x, y and z
d) Neither x, nor y, nor z

Answer: c
Explanation: In the code shown above, x, y and z are global variables inside the function f. y
and z are global because they are not assigned in the function. x is a global variable because
it is explicitly specified so in the code. Hence, x, y and z are global variables.

104. Which of the following data structures is returned by the functions globals() and
locals()?
a) list
b) set
c) dictionary
d) tuple

Answer: c
Explanation: Both the functions, that is, globals() and locals() return value of the data
structure dictionary.

105. What will be the output of the following Python code?

x=1
def cg():
global x
x=x+1
cg()
x
a) 2
b) 1
c) 0
d) Error

Answer: a
Explanation: Since ‘x’ has been declared a global variable, it can be modified very easily
within the function. Hence the output is 2.

106. On assigning a value to a variable inside a function, it automatically becomes a global

variable.
a) True
b) False

Answer: b
Explanation: On assigning a value to a variable inside a function, t automatically becomes a
local variable. Hence the above statement is false.

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107. What will be the output of the following Python code?
e="butter"
def f(a): print(a)+e
f("bitter")
a) error
b)
butter
error
c)
bitter
error
d) bitterbutter

Answer: c
Explanation: The output of the code shown above will be ‘bitter’, followed by an error. The
error is because the operand ‘+’ is unsupported on the types used above.

108. What happens if a local variable exists with the same name as the global variable you
want to access?
a) Error
b) The local variable is shadowed
c) Undefined behavior
d) The global variable is shadowed

Answer: d
Explanation: If a local variable exists with the same name as the local variable that you want
to access, then the global variable is shadowed. That is, preference is given to the local
variable.

109. What will be the output of the following Python code?

a=10
globals()['a']=25
print(a)
a) 10
b) 25
c) Junk value
d) Error

Answer: b
Explanation: In the code shown above, the value of ‘a’ can be changed by using globals()
function. The dictionary returned is accessed using key of the variable ‘a’ and modified to
25.

110. ______________ returns a dictionary of the module namespace.

________________ returns a dictionary of the current namespace.
a)
locals()

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globals()
b)
locals()
locals()
c)
globals()
locals()
d)
globals()
globals()

Answer: c
Explanation: The function globals() returns a dictionary of the module namespace, whereas
the function locals() returns a dictionary of the current namespace.

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 CHAPTER-4 – FILE HANDLING

1. To open a file c:\scores.txt for reading, we use _____________

a) infile = open(“c:\scores.txt”, “r”)
b) infile = open(“c:\\scores.txt”, “r”)
c) infile = open(file = “c:\scores.txt”, “r”)
d) infile = open(file = “c:\\scores.txt”, “r”)

Answer: b
Explanation: Execute help(open) to get more details.

2. To open a file c:\scores.txt for writing, we use ____________

a) outfile = open(“c:\scores.txt”, “w”)
b) outfile = open(“c:\\scores.txt”, “w”)
c) outfile = open(file = “c:\scores.txt”, “w”)
d) outfile = open(file = “c:\\scores.txt”, “w”)

Answer: b
Explanation: w is used to indicate that file is to be written to.

3. To open a file c:\scores.txt for appending data, we use ____________

a) outfile = open(“c:\\scores.txt”, “a”)
b) outfile = open(“c:\\scores.txt”, “rw”)
c) outfile = open(file = “c:\scores.txt”, “w”)
d) outfile = open(file = “c:\\scores.txt”, “w”)

Answer: a
Explanation: a is used to indicate that data is to be appended.

4. Which of the following statements are true?

a) When you open a file for reading, if the file does not exist, an error occurs
b) When you open a file for writing, if the file does not exist, a new file is created
c) When you open a file for writing, if the file exists, the existing file is overwritten with the
new file
d) All of the mentioned

Answer: d
Explanation: The program will throw an error.

5. To read two characters from a file object infile, we use ____________

a) infile.read(2)
b) infile.read()
c) infile.readline()
d) infile.readlines()

Answer: a
Explanation: Execute in the shell to verify.

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 6. To read the entire remaining contents of the file as a string from a file object infile, we use
____________
a) infile.read(2)
b) infile.read()
c) infile.readline()
d) infile.readlines()

Answer: b
Explanation: read function is used to read all the lines in a file.

7. What will be the output of the following Python code?

1. f = None
2. for i in range (5):
3. with open("data.txt", "w") as f:
4. if i > 2:
5. break
6. print(f.closed)
a) True
b) False
c) None
d) Error

Answer: a
Explanation: The WITH statement when used with open file guarantees that the file object is
closed when the with block exits.

8. To read the next line of the file from a file object infile, we use ____________
a) infile.read(2)
b) infile.read()
c) infile.readline()
d) infile.readlines()

Answer: c
Explanation: Execute in the shell to verify.

9. To read the remaining lines of the file from a file object infile, we use ____________
a) infile.read(2)
b) infile.read()
c) infile.readline()
d) infile.readlines()

Answer: d
Explanation: Execute in the shell to verify.

10. The readlines() method returns ____________

a) str

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 b) a list of lines
c) a list of single characters
d) a list of integers

Answer: b
Explanation: Every line is stored in a list and returned.

11. Which are the two built-in functions to read a line of text from standard input, which by
default comes from the keyboard?
a) Raw_input & Input
b) Input & Scan
c) Scan & Scanner
d) Scanner

Answer: a
Explanation: Python provides two built-in functions to read a line of text from standard
input, which by default comes from the keyboard. These functions are:
raw_input and input

12. What will be the output of the following Python code?

1. str = raw_input("Enter your input: ");
2. print "Received input is : ", str
a)
Enter your input: Hello Python
Received input is : Hello Python
b)
Enter your input: Hello Python
Received input is : Hello
c)
Enter your input: Hello Python
Received input is : Python
d) None of the mentioned

Answer: a
Explanation: The raw_input([prompt]) function reads one line from standard input and
returns it as a string. This would prompt you to enter any string and it would display same
string on the screen. When I typed “Hello Python!”

13. What will be the output of the following Python code?

1. str = input("Enter your input: ");
2. print "Received input is : ", str
a)
Enter your input: [x*5 for x in range(2,10,2)]
Received input is : [x*5 for x in range(2,10,2)]
b)
Enter your input: [x*5 for x in range(2,10,2)]
Received input is : [10, 30, 20, 40]

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c)
Enter your input: [x*5 for x in range(2,10,2)]
Received input is : [10, 10, 30, 40]
d) None of the mentioned

Answer: a
Explanation: None.

14. Which one of the following is not attributes of file?

a) closed
b) softspace
c) rename
d) mode

Answer: c
Explanation: rename is not the attribute of file rest all are files attributes.
Attribute Description
file.closed Returns true if file is closed, false otherwise.
file.mode Returns access mode with which file was opened.
file.name Returns name of the file.
file.softspace Returns false if space explicitly required with print, true otherwise.

15. What is the use of tell() method in python?

a) tells you the current position within the file
b) tells you the end position within the file
c) tells you the file is opened or not
d) none of the mentioned

Answer: a
Explanation: The tell() method tells you the current position within the file; in other words,
the next read or write will occur at that many bytes from the beginning of the file.

16. What is the current syntax of rename() a file?

a) rename(current_file_name, new_file_name)
b) rename(new_file_name, current_file_name,)
c) rename(()(current_file_name, new_file_name))
d) none of the mentioned

Answer: a
Explanation: This is the correct syntax which has shown below.
rename(current_file_name, new_file_name)

17. What is the current syntax of remove() a file?

a) remove(file_name)
b) remove(new_file_name, current_file_name,)
c) remove(() , file_name))

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 d) none of the mentioned

Answer: a
Explanation: remove(file_name)

18. What will be the output of the following Python code?

1. fo = open("foo.txt", "rw+")
2. print "Name of the file: ", fo.name
3.
4. # Assuming file has following 5 lines
5. # This is 1st line
6. # This is 2nd line
7. # This is 3rd line
8. # This is 4th line
9. # This is 5th line
10.
11. for index in range(5):
12. line = fo.next()
13. print "Line No %d - %s" % (index, line)
14.
15. # Close opened file
16. fo.close()
a) Compilation Error
b) Syntax Error
c) Displays Output
d) None of the mentioned

Answer: c
Explanation: It displays the output as shown below. The method next() is used when a file is
used as an iterator, typically in a loop, the next() method is called repeatedly. This method
returns the next input line, or raises StopIteration when EOF is hit.
Output:
Name of the file: foo.txt
Line No 0 - This is 1st line

Line No 1 - This is 2nd line

Line No 2 - This is 3rd line

Line No 3 - This is 4th line

Line No 4 - This is 5th line

19. What is the use of seek() method in files?

a) sets the file’s current position at the offset
b) sets the file’s previous position at the offset
c) sets the file’s current position within the file

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 d) none of the mentioned

Answer: a
Explanation: Sets the file’s current position at the offset. The method seek() sets the file’s
current position at the offset.
Following is the syntax for seek() method:
fileObject.seek(offset[, whence])
Parameters
offset — This is the position of the read/write pointer within the file.
whence — This is optional and defaults to 0 which means absolute file positioning, other
values are 1 which means seek relative to the current position and 2 means seek relative to
the file’s end.

20. What is the use of truncate() method in file?

a) truncates the file size
b) deletes the content of the file
c) deletes the file size
d) none of the mentioned

Answer: a
Explanation: The method truncate() truncates the file size. Following is the syntax for
truncate() method:
fileObject.truncate( [ size ])
Parameters
size — If this optional argument is present, the file is truncated to (at most) that size.

21. Which is/are the basic I/O connections in file?

a) Standard Input
b) Standard Output
c) Standard Errors
d) All of the mentioned

Answer: d
Explanation: Standard input, standard output and standard error. Standard input is the data
that goes to the program. The standard input comes from a keyboard. Standard output is
where we print our data with the print keyword. Unless redirected, it is the terminal console.
The standard error is a stream where programs write their error messages. It is usually the
text terminal.

22. What will be the output of the following Python code? (If entered name is sanfoundry)
1. import sys
2. print 'Enter your name: ',
3. name = ''
4. while True:
5. c = sys.stdin.read(1)
6. if c == '\n':
7. break

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8. name = name + c
9.
10. print 'Your name is:', name
a) sanfoundry
b) sanfoundry, sanfoundry
c) San
d) None of the mentioned

Answer: a
Explanation: In order to work with standard I/O streams, we must import the sys module.
The read() method reads one character from the standard input. In our example we get a
prompt saying “Enter your name”. We enter our name and press enter. The enter key
generates the new line character: \n.
Output:
Enter your name: sanfoundry
Your name is: sanfoundry

23. What will be the output of the following Python code?

1. import sys
2. sys.stdout.write(' Hello\n')
3. sys.stdout.write('Python\n')
a) Compilation Error
b) Runtime Error
c) Hello Python
d)
Hello
Python

Answer: d
Explanation: None
Output:
Hello
Python

24. Which of the following mode will refer to binary data?

a) r
b) w
c) +
d) b

Answer:d
Explanation: Mode Meaning is as explained below:
r Reading
w Writing
a Appending
b Binary data
+ Updating.

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25. What is the pickling?
a) It is used for object serialization
b) It is used for object deserialization
c) None of the mentioned
d) All of the mentioned

Answer: a
Explanation: Pickle is the standard mechanism for object serialization. Pickle uses a simple
stack-based virtual machine that records the instructions used to reconstruct the object. This
makes pickle vulnerable to security risks by malformed or maliciously constructed data, that
may cause the deserializer to import arbitrary modules and instantiate any object.

26. What is unpickling?

a) It is used for object serialization
b) It is used for object deserialization
c) None of the mentioned
d) All of the mentioned

Answer: b
Explanation: We have been working with simple textual data. What if we are working with
objects rather than simple text? For such situations, we can use the pickle module. This
module serializes Python objects. The Python objects are converted into byte streams and
written to text files. This process is called pickling. The inverse operation, reading from a file
and reconstructing objects is called deserializing or unpickling.

27. What is the correct syntax of open() function?

a) file = open(file_name [, access_mode][, buffering])
b) file object = open(file_name [, access_mode][, buffering])
c) file object = open(file_name)
d) none of the mentioned

Answer: b
Explanation: Open() function correct syntax with the parameter details as shown below:
file object = open(file_name [, access_mode][, buffering])
Here is parameters’ detail:
file_name: The file_name argument is a string value that contains the name of the file that
you want to access.
access_mode: The access_mode determines the mode in which the file has to be opened, i.e.,
read, write, append, etc. A complete list of possible values is given below in the table. This is
optional parameter and the default file access mode is read (r).
buffering: If the buffering value is set to 0, no buffering will take place. If the buffering
value is 1, line buffering will be performed while accessing a file. If you specify the
buffering value as an integer greater than 1, then buffering action will be performed with the
indicated buffer size. If negative, the buffer size is the system default(default behavior).

28. What will be the output of the following Python code?

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1. fo = open("foo.txt", "wb")
2. print "Name of the file: ", fo.name
3. fo.flush()
4. fo.close()
a) Compilation Error
b) Runtime Error
c) No Output
d) Flushes the file when closing them

Answer: d
Explanation: The method flush() flushes the internal buffer. Python automatically flushes the
files when closing them. But you may want to flush the data before closing any file.

29. Correct syntax of file.writelines() is?

a) file.writelines(sequence)
b) fileObject.writelines()
c) fileObject.writelines(sequence)
d) none of the mentioned

Answer: c
Explanation: The method writelines() writes a sequence of strings to the file. The sequence
can be any iterable object producing strings, typically a list of strings. There is no return
value.
Syntax
Following is the syntax for writelines() method:
fileObject.writelines( sequence ).

30. Correct syntax of file.readlines() is?

a) fileObject.readlines( sizehint );
b) fileObject.readlines();
c) fileObject.readlines(sequence)
d) none of the mentioned

Answer: a
Explanation: The method readlines() reads until EOF using readline() and returns a list
containing the lines. If the optional sizehint argument is present, instead of reading up to
EOF, whole lines totalling approximately sizehint bytes (possibly after rounding up to an
internal buffer size) are read.
Syntax
Following is the syntax for readlines() method:
fileObject.readlines( sizehint );
Parameters
sizehint — This is the number of bytes to be read from the file.

31. In file handling, what does this terms means “r, a”?
a) read, append
b) append, read

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c) write, append
d) none of the mentioned

Answer: a
Explanation: r- reading, a-appending.

32. What is the use of “w” in file handling?

a) Read
b) Write
c) Append
d) None of the mentioned

Answer: b
Explanation: This opens the file for writing. It will create the file if it doesn’t exist, and if it
does, it will overwrite it.
fh = open(“filename_here”, “w”).

33. What is the use of “a” in file handling?

a) Read
b) Write
c) Append
d) None of the mentioned

Answer: c
Explanation: This opens the fhe file in appending mode. That means, it will be open for
writing and everything will be written to the end of the file.
fh =open(“filename_here”, “a”).

34. Which function is used to read all the characters?

a) Read()
b) Readcharacters()
c) Readall()
d) Readchar()

Answer: a
Explanation: The read function reads all characters fh = open(“filename”, “r”)
content = fh.read().

35. Which function is used to read single line from file?

a) Readline()
b) Readlines()
c) Readstatement()
d) Readfullline()

Answer: b
Explanation: The readline function reads a single line from the file fh = open(“filename”,

P SURESH BABU, PGT-COMPUTER SCIENCE Page 336 of 352

“r”)
content = fh.readline().
36. Which function is used to write all the characters?
a) write()
b) writecharacters()
c) writeall()
d) writechar()

Answer: a
Explanation: To write a fixed sequence of characters to a file
fh = open(“hello.txt”,”w”)
write(“Hello World”).

37. Which function is used to write a list of string in a file?

a) writeline()
b) writelines()
c) writestatement()
d) writefullline()

Answer: a
Explanation: With the writeline function you can write a list of strings to a file
fh = open(“hello.txt”, “w”)
lines_of_text = [“a line of text”, “another line of text”, “a third line”]
fh.writelines(lines_of_text).

38. Which function is used to close a file in python?

a) Close()
b) Stop()
c) End()
d) Closefile()

Answer: a
Explanation: f.close()to close it and free up any system resources taken up by the open file.

39. Is it possible to create a text file in python?

a) Yes
b) No
c) Machine dependent
d) All of the mentioned

Answer: a
Explanation: Yes we can create a file in python. Creation of file is as shown below.
file = open(“newfile.txt”, “w”)
file.write(“hello world in the new file\n”)
file.write(“and another line\n”)
file.close().

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40. Which of the following are the modes of both writing and reading in binary format in
file?
a) wb+
b) w
c) wb
d) w+

Answer: a
Explanation: Here is the description below
“w” Opens a file for writing only. Overwrites the file if the file exists. If the file does not
exist, creates a new file for writing.
“wb” Opens a file for writing only in binary format. Overwrites the file if the file exists. If
the file does not exist, creates a new file for writing.
“w+” Opens a file for both writing and reading. Overwrites the existing file if the file exists.
If the file does not exist, creates a new file for reading and writing.
“wb+” Opens a file for both writing and reading in binary format. Overwrites the existing
file if the file exists. If the file does not exist, creates a new file for reading and writing

41. Which of the following is not a valid mode to open a file?

a) ab
b) rw
c) r+
d) w+

Answer: b
Explanation: Use r+, w+ or a+ to perform both read and write operations using a single file
object.
42. What is the difference between r+ and w+ modes?
a) no difference
b) in r+ the pointer is initially placed at the beginning of the file and the pointer is at the end
for w+
c) in w+ the pointer is initially placed at the beginning of the file and the pointer is at the end
for r+
d) depends on the operating system

Answer: b
Explanation: none.

43. How do you get the name of a file from a file object (fp)?
a) fp.name
b) fp.file(name)
c) self.__name__(fp)
d) fp.__name__()

Answer: a
Explanation: name is an attribute of the file object.

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44. Which of the following is not a valid attribute of a file object (fp)?
a) fp.name
b) fp.closed
c) fp.mode
d) fp.size

Answer: d
Explanation: fp.size has not been implemented.

45. How do you close a file object (fp)?

a) close(fp)
b) fclose(fp)
c) fp.close()
d) fp.__close__()

Answer: c
Explanation: close() is a method of the file object.

46. How do you get the current position within the file?
a) fp.seek()
b) fp.tell()
c) fp.loc
d) fp.pos

Answer: b
Explanation: It gives the current position as an offset from the start of file.

47. How do you rename a file?

a) fp.name = ‘new_name.txt’
b) os.rename(existing_name, new_name)
c) os.rename(fp, new_name)
d) os.set_name(existing_name, new_name)

Answer: b
Explanation: os.rename() is used to rename files.

48. How do you delete a file?

a) del(fp)
b) fp.delete()
c) os.remove(‘file’)
d) os.delete(‘file’)

Answer: c
Explanation: os.remove() is used to delete files.

49. How do you change the file position to an offset value from the start?
a) fp.seek(offset, 0)

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b) fp.seek(offset, 1)
c) fp.seek(offset, 2)
d) none of the mentioned

Answer: a
Explanation: 0 indicates that the offset is with respect to the start.

50. What happens if no arguments are passed to the seek function?

a) file position is set to the start of file
b) file position is set to the end of file
c) file position remains unchanged
d) error

Answer: d
Explanation: seek() takes at least one argument.

MULTIPLE CHOICE QUESTIONS:

1. What is the use of “a” in file handling?

a) Read
b) Write
c) Append
d) None of the mentioned

2. How do you rename a file?

a) f.name = ‘new_name.txt’
b) os.rename(old_file, new_name)
c) os.set_name(old_file, new_name)

3. What is the use of seek() method in files?

a) sets the file’s current position at the offset

b) sets the file’s previous position at the offset
c) sets the file’s current position within the file
d) none of the mentioned
Correct answer
sets the file’s current position at the offset

4. How do you get the name of a file from a file object (f)?

a) f.name
b) f.file(name)
c) self.__name__(f)
d) f.__name__()
Correct answer

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 f.name

5. What is the use of “w” in file handling?

a) Read
b) Write
c) Append
d) None of the mentioned

6. What is the correct syntax to remove() a file?

a) remove(file_name)
b) remove(new_file_name, current_file_name,)
c) remove(() , file_name))
d) none of the mentioned
Correct answer
remove(file_name)

7. To read two characters from a file object f, we use ____________

a) f.read(2)
b) f.read()
c) f.readline()
d) f.readlines()
Correct answer
f.read(2)

8. What is the correct syntax of rename() a file?

a) rename(current_file_name, new_file_name)
b) rename(new_file_name, current_file_name,)
c) rename(()(current_file_name, new_file_name))
d) none of the mentioned

9. Which of the following statements are true?

a) When you open a file for reading an error occurs, if the file does not exist
b) When you open a file for writing a new file is created, if the file does not exist
c) When you open a file for writing, the existing file is overwritten with the new
file, if the file exists,
d) All of the mentioned

10. Which are the two built-in functions to read a line of text from standard input, which
by default comes from the keyboard?

a) raw_input & Input

b) Input & Scan

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 c) Scan & Scanner
d) Scanner
Correct answer
raw_input & Input

11. What will be the output of the following Python code?

a) Compilation Error
b) Runtime Error
c) No Output
d) Flushes the file when closing them
Correct answer
Flushes the file when closing them

12. What happens if no arguments are passed to the seek function?

a) file position is set to the start of file

b) file position is set to the end of file
c) file position remains unchanged
d) error
Correct answer
error

13. To read the next line of the file from a file object f, we use ___________

a) f.read(2)
b) f.read()
c) f.readline()
d) f.readlines()
Correct answer
f.readline()

14. What is the use of truncate() method in file?

a) truncates the file size

b) deletes the content of the file
c) deletes the file size
d) none of the mentioned
Correct answer
truncates the file size

15. Is it possible to create a text file in Python?

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 a) Yes
b) No
c) Machine dependent
d) All of the mentioned
Correct answer
Yes

16. Which of the following are the modes of both writing and reading in binary format in
file?

a) wb+
b) w
c) wb
d) w+
Correct answer
wb+

17. What is the difference between r+ and w+ modes?

a) No difference
b) In case of r+ the pointer is initially placed at the beginning of the file and the
pointer is at the end for w+
c) In case of w+ the pointer is initially placed at the beginning of the file and the
pointer is at the end for r+
d) Depends on the operating system
Correct answer
In case of r+ the pointer is initially placed at the beginning of the file and the
pointer is at the end for w+

18. To open a file c:\text.txt for appending data, we use ___________

a) outfile = open(“c:\\test.txt”, “a”)

b) outfile = open(“c:\\test.txt”, “rw”)
c) outfile = open(file = “c:\test.txt”, “w”)
d) outfile = open(file = “c:\\test.txt”, “w”)
Correct answer
outfile = open(“c:\\test.txt”, “a”)

19. What will be the output of the following Python code?

a) Compilation Error
b) Runtime Error

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 c)
output

d)
Output

20. Correct syntax of file.readlines() is?

a) fileObject.readlines( sizehint );
b) fileObject.readlines();
c) fileObject.readlines(sequence)
d) none of the mentioned

21. Command to delete a file.

a) del(fp)
b) fp.delete()
c) os.remove(‘file’)
d) os.delete(‘file’)

22. Which function is used to write all the characters?

a) write()
b) writecharacters()
c) writeall()
d) writechar()

Correct answer
write()

23. What is the correct syntax of open() function?

a) file = open(file_name [, access_mode][, buffering])

b) file object = open(file_name [, access_mode][, buffering])
c) file object = open(file_name)
d) none of the mentioned

Correct answer
file object = open(file_name [, access_mode][, buffering])

24. Which of the following is not a valid attribute of a file object (f)?

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 a) f.name
b) f.closed
c) f.mode
d) f.size
Correct answer
f.size

25. Which one of the following is not attributes of file?

a) closed
b) softspace
c) rename
d) mode

26. Which function is used to read single line from file?

a) readline()
b) readlines()
c) readstatement()
d) readfullline()

27. Which of the following mode will refer to binary data?

a) r
b) w
c) +
d) b

28. To open a file c:\text.txt for reading, we use _____________

a) f = open(“c:\test.txt”, “r”)
b) f = open(“c:\\test.txt”, “r”)
c) f = open(file = “c:\test.txt”, “r”)
d) f = open(file = “c:\\test.txt”, “r”)

Correct answer
f = open(“c:\\test.txt”, “r”)

29. Change the file position to an offset value from the starting position.

a) fp.seek(offset, 0)
b) fp.seek(offset, 1)
c) fp.seek(offset, 2)
d) none of the mentioned
Correct answer
fp.seek(offset, 0)

P SURESH BABU, PGT-COMPUTER SCIENCE Page 345 of 352

 30. What is the use of tell() method in python?

a) Inform you the current position within the file

b) Inform you the end position within the file
c) Inform you the file is opened or not
d) None of the mentioned
Correct answer
Inform you the current position within the file

31. How do you close a file object (fp)?

a) close(fp)
b) fclose(fp)
c) fp.close()
d) fp.__close__()
Correct answer
fp.close()

32. Correct syntax of file.writelines() is?

a) file.writelines(sequence)
b) fileObject.writelines()
c) fileObject.writelines(sequence)
d) none of the mentioned

33. What will be the output of the following Python code?

a) w3resource
b) w3resource , w3resource
c) w3r
d) None of the mentioned

34. What will be the output of the following Python code?

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 a) True
b) False
c) None
d) Error
Correct answer
True

35. In file handling, what does this terms means “r, a”?

a) read, append
b) append, read
c) write, append
d) none of the mentioned

Correct answer
read, append

36. To open a file c:\text.txt for writing, we use ____________

a) outfile = open(“c:\test.txt”, “w”)
b) outfile = open(“c:\\test.txt”, “w”)
c) outfile = open(file = “c:\test.txt”, “w”)
d) outfile = open(file = “c:\\test.txt”, “w”)

Correct answer
outfile = open(“c:\\test.txt”, “w”)

37. Which function is used to write a list of string in a file?

a) writeline()
b) writelines()
c) writestatement()
d) writefullline()
Correct answer
writeline()

38. Which function is used to read all the characters?

a) read()
b) readcharacters()
c) readall()
d) readchar()
Correct answer
P SURESH BABU, PGT-COMPUTER SCIENCE Page 347 of 352
 read()

39. Which of the following is not a valid mode to open a file?

a) ab
b) rw
c) r+
d) w+
Correct answer
rw

40. The readlines() method returns ____________

a) str
b) a list of lines
c) a list of single characters
d) a list of integers

41. Which function is used to close a file in Python?

a) close()
b) stop()
c) end()
d) closefile()
Correct answer
close()

42. How do you get the current position within the file?

a) f.seek()
b) f.tell()
c) f.loc
d) f.pos

Correct answer
f.tell()

43. To read the remaining lines of the file from a file object f, we use __________

a) f.read(2)
b) f.read()
c) f.readline()
d) f.readlines()
Correct answer
f.readlines()

44. To read the entire remaining contents of the file as a string from a file object f, we

P SURESH BABU, PGT-COMPUTER SCIENCE Page 348 of 352

 use ___________

a) f.read(2)
b) f.read()
c) f.readline()
d) f.readlines()
Correct answer
f.read()

P SURESH BABU, PGT-COMPUTER SCIENCE Page 349 of 352

MCQs – FILE HANDLING:

[1] Which of the following is not a correct statement for binary files?
a) Easy for carrying data into buffer
b) Much faster than other file systems
c) Characters translation is not required
d) Every line ends with new line character ‘\n’

[2] Which of the following file mode open a file for reading and writing both in the binary
file?
a) r
b) rb
c) rb+
d) rwb

[3] Which of the following file mode opens a file for reading and writing both as well as
overwrite the existing file if the file exists otherwise creates a new file?
a) w
b) wb+
c) wb
d) rwb

[4] Which of the following file mode opens a file for append or read a binary file and moves
the files pointer at the end of the file if the file already exist otherwise create a new file?
a) a
b) ab
c) ab+
d) a+

[5] Ms. Suman is working on a binary file and wants to write data from a list to a binary file.
Consider list object as l1, binary file suman_list.dat, and file object as f. Which of the
following can be the correct statement for her?
a) f = open(‘sum_list’,’wb’); pickle.dump(l1,f)
b) f = open(‘sum_list’,’rb’); l1=pickle.dump(f)
c) f = open(‘sum_list’,’wb’); pickle.load(l1,f)
d) f = open(‘sum_list’,’rb’); l1=pickle.load(f)

[6] Which option will be correct for reading file for suman from q-5?
–> Option ) f = open(‘sum_list’,’rb’); l1=pickle.load(f)

[7] In which of the file mode existing data will be intact in binary file?
a) ab
b) a
c) w
d) wb

[8]Which one of the following is correct statement?

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a) import – pickle
b) pickle import
c) import pickle
d) All of the above

Data file handling in python – MCQs

1 Every file has its own identity associated with it. Which is known as –
a. icon
b. extension
c. format
d. file type

2 Which of the following is not a known file type?

a. .pdf
b. jpg
c. mp3
d. txp

3. In f=open(“data.txt”, “r”), r refers to __________.

a. File handle
b. File object
c. File Mode
d Buffer

4. EOL stands for

a. End Of Line
b. End Of List
c. End of Lines
d. End Of Location

5. Which of the following file types allows to store large data files in the computer memory?
a. Text Files
b. Binary Files
c. CSV Files
d. None of these

6. Which of the following file types can be opened with notepad as well as ms excel?
a. Text Files
b. Binary Files
c. CSV Files
d. None of these

7. Which of the following is nor a proper file access mode?

a. close
b. read
c. write

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d. append

8. To read 4th line from text file, which of the following statement is true?
a. dt = f.readlines();print(dt[3])
b. dt=f.read(4) ;print(dt[3])
c. dt=f.readline(4);print(dt[3])
d. All of these

9 Which of the following function flushes the files implicitly?

a. flush()
b. close()
c. open()
d. fflush()

10. Which of the following functions flushes the data before closing the file?
a. flush()
b. close()
c. open()
d. fflush()

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