DO NOT OPEN THIS TEST BOOKLET UNTIL YOU ARE ASKED TO DO

TEST BOOKLET Sl. Ne. - r 06{

_

bject Code : 05 Subject : Commerce

LECTURERS FOR NON-GOVT. AIDED COLLEGES OF ODISHA
TimeAllowed:2 Hours Maximum Marks : 150
: INSTRUCTIONS TO CANDIDATES :
1 TMMEDIATELY AFTER THE COMMENCEMENT OF THE EHMINATION, YOU SHOULD
CHECIfiHATTHE}TESTB@I(IETCONTAINStS PAGESANDDOESiIOT}IAVEAT.IYImPRNTEDOR
TORi.I OR IIIISSING PAGES OR TTEillS ETC. IF SO, GET 1T REPI.ACED BY A COMPLETE TEST
BOOK.E[,

2. You have to enter your Roll No. on the Test

Booklet in the Box provided alongside. DO
NOT write anything else on the Test Booklet.
U,
3. The Test Booklet contains 100 questions. Each question comprises four answers. You rn
have to select the correct answer which you want to mark (darken) on the Answer Sheet
(OMR Sheet). ln any case choose ONLY ONE answer for each question. lf more than
one answer is darkened, it will be considered as wrong.
r
4. You have to mark (darken) all your answers only on the OMR Answer Sheet using
BLACK BALL POINT PEN provided by the State Selection Board. You have to do rough
work only in the space provided at the end of the Test Booklet. See instructions in the
Answer Sheet.

5. All queslions carry equal marks i.e. of one and half mark for each correct answer and each
wrong answer will result in negative marking of 0.50 mark.

6. Before you proceed to mark (darken) the answers in the OMR Answer Sheet to the
questions in the Test Booklet, you have to fill in some particulars in the Answer Sheet as
per the instructions in yourAdmit Card.

7. On completion of the examination, you should hand over the original Answer Sheet
(OMR Sheet) issued to you to the lnvigilator before leaving the Examination Hall. You are
allowed to take with you the candidate's copy (carbon copy) of the OMR Answer Sheet
along with the Test Booklet for your reference.

Gandidate's full signature I nvigi lator's sig nature

tw-13t12 (Tum over)

zo z l,
1 What is the underlying principle that (B) Statement of Profit and Loss
supports the im med iate recognition (c) Liabilities side
of an estimated loss ?
(D) TradingAccount
(A) Matching
(B) Prudence 5. Which of the following receipts is a
revenue receipt ?
(C) Substance overform
(A) Compensation received from
(D) Consistency
Govemment
2. Which of the following is a deferred (B) Amount realized from the sale
revenue expenditure ? of investment
(A) lnterest on loan taken for the (C) Dividend received on
purchase of land
investment
(B) Expenses incurred on
(D) Loan received from a bank
installation of a newmachine
(C) Expenses paid forconstruction
6. Which of the foltowing equation is
wrong ?
of an additional room in the
building (A) Gross Profit = Sales + Closing

(D) Expenses on advertisement

Stock - Opening Stock -
Purchase
campaign for launching a new
product (B) Cost of Goods Sold + Gross
Profit = Sales
3 Which of the following is a non-
(C) Assets - Liabilities = Equity
operating expense ?
(A) Advertisementexpenditure (D) Operating Profit= Gross Profit
(B) Depreciation -AllExpenses

(C) lntereston loan 7. Which Schedule of the Companies

(D) Salary of CEO Act, 2013 shows the preparation of

Balance Sheet ?
4. Where is the DepreciationAccount
(A) III
appearing in the Trial Balance
shown ?
(B) M
(A) Deducted from the concerned
(C) V

asset (D) Vl

tw - 13112 (2) Contd.

8. Which of thefollowing is not included (B) Efficiency
setof financialstatements as
in the (C) Liquidity
perSection2(aQ of the Campanies
(D) Profitability
4ct,2013?
(A) Cash FlowStatement 13. Which of the fotlowing lndAS deals
with business combinations ?
(B) Statementof Changes in Equity
(A) 101
(C) FundsFlowStatement
(B) 102
(D) NotestoAccounts
(c) 103
I ln a Cash Flow Statement, financial (D) 104
activities as per lnd AS 7 do not
include:
14. ln CVP analysis, the effect of
changes in various variables on
(A) Buy back of shares
is analysed.
(B) Purchase of machinery
(A) Fixed cost
(C) lssue of debentures
(B) Variable cost
(D) Dividend paid
(C) Profit
10. Which of the following lndAS deals (D) Volume
with intangible assets ?
15. ln marginal costing, which of the
(A) 35 following costs are charged to
(B) 36 producls ?
(c) 37 (A) Variable costs
(D) 38 (B) Fixed costs
11. Price-earning ratio is useful for (C) Totalcosts
whom ? (D) Incrementalcosts
(A) Long-termcreditors 16. At break-even point, which of the
(B) Short-termcreditors following equation is correct ?
(C) Lenders (A) Sales = Total Cost - Variable
(D) Shareholders Cost
(B) Contribution = Fixed Cost
12. Fixed assets turnover ratio is a test
(C) Sales Revenue =Variable Cost
of:
(D) Profit = Fixed Cost + Variable
(A) Solvency
Cost
tw -13t12 (3) (Turn over)
17. Which of the following system 21. What is novation ofcontract?
applies when standardized goods
(A) Alteration of a contract
are produced under a series of
operations ?
(B) Change in provisions of a
contract
(A) Job order cost system
(B) Process cost system (C) Substituting an old contractfor

a new one
(C) Standard cost system
(D) Kaizen cost system (D) Rescinding of a contract

18. Which of the following budgets 22. Acontractcontaining an undertaking

requires all levels to work from to do.an impossible act, is :

scratch ? (A) Void ab initio

(A) Masterbudget (B) Illegal
(B) Flexible budget
(c) Valid
(C) Performance budget
(D) Voidable
(D) Zero-based budget
23. Aquasi-contract is a/an :
19. The standard, wtrich may be achieved
under normal operating conditions, (A) Contract
is called : (B) Legalobligation
(A) ldealstandard (C) Contingentcontract
(B) Normalstandard (D) Agreement
(C) Basic standard
24. Any guarantee which the creditor has
(D) Currentstandard
obtained by means of keeping
20. lf margin of safety is Rs. 80,000, silence as to material circumstances
profit is Rs. 20,000 and sales is
is:
Rs. 3,00,000, what is the amount of
fixed cost ?
(A) Considered to be his/herdenial

(A) Rs.55,000 (B) Considered to be his/her

approval
(B) Rs.75,000
(C) Rs.95,000 (c) Valid

(D) Rs. 1,00,000 (D) lnvalid

tw- 13/12 (4) Contd.

25. Which of the following is not a right (B) To issue debentures
of the bailee ? (C) To make loans
(A) Rightto receive extra-ordinary (D) To remit the payment of any
expenses debt due by a director
(B) Right of lien
30. Which of the following is the first
(C) Righttodamagesfordefective meeting of a company after
title of bailor incorporation ?
(D) Right to terminate gratuitous (A) Extra-ordinarymeeting
bailment (B) AGM
26. Which Section of the CampaniesAct, (C) Statutory meeting
2013 defines a company ? (D) lncorporationmeeting
(A) Section 3(1) 31. LLP files its LLP agreement to :

(B) Section 1(3) (A) State Govemment

(C) Section 1(2) (B) CentralGovemment
(D) Section 2(1) (C) Ministry of CorporateAffairs
27. The companies which are formed (D) Registrar
underspecialact, are called as :
32. On the admission of a new partner :

(A) Public companies (A) Old partnership has to be

(B) Statutorycompanies dissolved
(C) Charteredcompanies (B) Old firm has to be dissolved
(D) Governmentcompanies (C) Both otd firm and partnership
have to be dissolved
28. A company may be wound up by the
Tribunalby passing :
(D) Neither partnership nor firm
have to be dissolved
(A) Ordinary resolution
(B) Specialresolution 33. Which type of partnership has no
agreement in terms of the duration
(C) Extra-ordinaryresolution
of partnership ?
(D) No resolution
(A) Limitedpartnership
29. Which of the following is beyond the (B) Generalpartnership .

powers of the Board of Directors ? (C) Partnership-at-will

(A) To issue prospectus (D) Unlimitedpartnership

lw - 13t12 (5) (Turn over)

34. The maximum numberof members 38. lf goods are destroyed in case of
that can be a part of an LLP is : sale, the loss will be of :

(A) 50 members (A) Seller

(B) No limit (B) Buyer
(C) 20 members
(C) Third party
(D) lnsurance company
(D) 200 members
39. Who can make a request fordemat
35. ln which Section of Sale of Goods of securities ?
Act, 1930, the doctrine of the Caveat
(A) Depository
Emptor is embodied ?
(B) Company
(A) Section 20 (C) Registered holderofsecurities
(B) Section 18 (D) Depositoryparticipant
(C) Section 16
40. To dematerialize government
(D) Section 14 securities, NSDL has to take prior
approval of :
36. The rightof an unpaid sellerto retain
the goods until the price is paid, is
(A) RBr
called: (B) SEB!
(A) Pledge (C) RBland SEBI
(D) lssuingGovemmentdepartnent
(B) Lien
(C) Suitfor price 41. Which of the following statistical
measures can be calculated from a
(D) Right of resale
cu mu lative frequency cu rve ?
37. Which of thefollowing is notthe right (A) Median
ofthe buyer ? (B) Mode
(A) To have delivery of the goods (C) Geometric mean
as perthe contract (D) Harmonicmean
(B) To rejectthe goods when theY 42. Which measure of dispersion is
are not of the descriPtion square of standard deviation ?
specified (A) Range
(C) Tosueforthedamages (B) lnter-quartilerange
(D) To have right to withhold (C) Variance
delivery (D) Mean deviation

tw - 13t12 (6) Contd

43. ln a unimodal and sYmmetrical 47. ln a moderately asymmetrical
distribution, which of the following distribution, if the mode and mean
relationships between averages is are 42 and 40 respectively, what is
correct ? thevalueof median ?
(A) Mean = Median = Mode (A) 40.67
(B) Mean > Median > Mode (B) 41.67
(C) Mean < Median > Mode (c) 41.02
(D) Mean > Median < Mode (D) 40.02

44. For a given samPIe, the mean is 12 48. lf the two regression coefficients are
and the set of observations are8,24, 0.8 and 0.2, then the value of
0 and 4. The variance of the sample
coefficient of correlation is :

is:
(A) 122.66 (A) -0.50
(B) 12 (B) +0.16
(c) 120
(c) 4.28
(D) 368
(D) +o'40

45. What type of data is required for 49. Poisson distribution is

doing Spearman rank correlation ? probability distribution.

(A) Ratio data with normat (A) Continuous

(B) lntervaldatawithnormal (B) Discrete
(C) Ordinaldata (C) lndividual
(D) Anyoftheabovedata (D) Unimodal
46. !f the probability of defective toy is 0.1, 50. Which of the following is
what is the standard deviation forthe not a property of normal
distribution of defective toys in a total distribution ?
of 500 ? (A) lts graph is a bell-shaped curve
(A) 6.65 (B) Here, Mean = Median = Mode
(B) 6.71
(C) lt is a discrete distribution
(c) 6.56
(D) The quartiles are equidistant
(D) 5.71
from median

lw - 13t12 (7) (Tum over)

51. Letx = numberof units of product'1' (C) CPM analysis is activity
to produoe and Iety= numberof units oriented.
of product'2'to produce. Consider (D) ln CPM the time is related to
the following objective function : cost.
Maximize z=x+ 2y. Subjecttothe
55. Reordering levelis calculated as
following constraints : x + y < 12 :

(resource A), x < 8 (resource B), (A) Maximum consumption rate x

yS6 (resource C), x and y > 0. What Minimum reorderperiod

will the optimal objective function (B) Minimum consumption rate x

value be ? Minimum reorderperiod
(A) 16 (C) Maximum consumption rate x
(B) 18 Maximum reorderperiod

(c) 12 (D) Minimum consumption rate x

(D) Maximum reorderperiod

10

52. CPM is the :

56 The ordering cost per order of an
inventory is Rs. 400 with an annual
(A) Time oriented technique
carrying cost of Rs. 10 per unit. The
(B) Event oriented technique
economic order quantity for an annual
(C) Targetoriented technique demand of 2000 units is:
(D) Activity oriented technique (A) 400
53. Slack time in PERT analysis : (B) 480
(A) Can never be less than 0 (c) 500
(B) Can neverbegreaterthan 0 (D) 540
(C) ls minimum for criticalevents 57. Which of the following methods of
(D) lsmaximumforcriticalevents inventory control aims at
concentrating efforts on selected
54. Choose the wrong option from the
items of material?
following statements:
(A) PERT analYsis is event (A) Levelsetting
oriented. (B) Materialtumoverratio
(B) PERT analYsis is activitY (C) ABC analysis
oriented. (D) Perpetual inventorysYstem
tw - 13112 (8) Contd.
58. Mathematical model of linear 61. Which of the following is not correct
programming is important regarding lncomeTax?
because: (A) lt is levied by the Central
(A) lt captures the relevant Govemmentonly.
relationship among decision (B) lt is computed upon nettaxable
factors income of currentyear.
(B) lt enables use of algebraic (C) lt is computed on the basis of
techniques
rates of income tax applicable
(C) Decision makers prefertowork in current assessment year.
with formalmodels
' (D) Certain amount of income is
(D) It helps in converting theverbal exempted from income tax.
description and numerical
data into mathematical 62. Which of the following is not a direct
expression lax?
(A) lncometiax
59. Consider the following linear
programming problem :
(B) Capitalgains tax
Maximize : 12X+ 10Y (C) Securities transaction tax

Subject to : 4X + 3Y < 480 (D) GSr

2X+3Y<360 63. Which of thefollowing is considered
Allvariables > 0 as agricultural income ?

Which of the foltowing points (X, Y) (A) Rent received from agricuttural
is feasible ? land
(A) (30, 100) (B) lncome from cattle breeding
(B) (120, 10) (C) Income from livestock breeding
(c) (10, 120) (D) lncomefromjuicecentre
(D) (60, e0)
U. Paying for guest's accommodation
60. The factor reversal test is satisfied is chargeable under:
by: (A) Profit and gains of business
(A) Fisher's ideal index and profession
(B) Simple GM of price relatives (B) lncome.from house property
(C) Marshall-Edgeworthmethod (C) lncomefromothersour@s
(D) Weighted GM of pricerelatives (D) Capitatgain
tw - 13t12 (9) (Tumover)
65. Which of thefollowing isfullytaxable (B) Entertainmenttax
allowance ?
(C) Stamp duty
(A) House rent allowance
(D) vAr
(B) Overseas allowance
(C) Dearness allowance 70. GST is a based

(D) Tribalareaallowance tax.

(A) Orisin
66. How will you treat the income from
the sale of machinery ? (B) Destination

(A) Long-termcapitalgain (C) Tenitory

(B) Short-termcapitalgain (D) tntemational
(C) lncome from business and
71. |GSTdealswith:
profession
(A) Service tax on imported
(D) lncomefrom othersour@s
service
67. ln normal conditions, the due date
of first instalment of advance tax
{B) Time of supply

by assessees other than companies

(C) iomposition scheme

is: (D) lntra-state supply

(A) 1sth July

72. Which of the following is not included
(B) lSthAugust in GST ?
(C) 3oth July (A) Tobacco
(D) 1sth June
(B) Alcoholic liquor for human
68. The tax rates, rules and regulations consumption
of GST are governed by:
(C) Healthcareservices
(A) GST Council
(D) Frozen meat products
(B) CentralGovernment
(C) State Government 73. What does 'N' stand fot, in nSru Z

(D) GST Board (A) Network

69. Which of the following tax is not

(B) Nationalization

subsumed in GST ? (C) Nomination

(A) Entrytax (D) Nomenclature
tw - 13t12 (10) Contd.
7 4. Process of veriffing the documentary 78. Which of the following statemer,

evidences of tansactions is known correct ?

AS: (A) Valuation is a Part of

verification.
(A) Verification
(B) Verification is a Part of
(B) Vouching
valuation.
(C) Auditing
(C) Valuation hasnothingtodowith
(D) Checking verification.

75. tnternalAuditor is appointed by: (D) Auditor is a valuer.

(A) Management 79. Vouching of the balances of all

(B) Govemment income and expenses account is
(C) Shareholders known as vouching of :

(D) Statutorybody
(A) Sales
(B) Cash
76. Effective internal check system
(C) PersonalLedger
reduces:
(D) lmpersonalLedger
(A) Theliabilityoftheauditor
(B) Responsibilities of the
80. Before the Work of audit is
commenced, the auditor plans out
auditor
the whole of audit work is called :
(C) Workofauditor
(A) Audit Plan
(D) Managerialresponsibility
(B) Audit Programme
77. Verification of the value of assets, (C) Audit Risk
liabilities, reserves, provisions and (D) Audit Note
the amount of .profit or loss of a firm
81. Who developed equity theory of
is called :
motivation ?
(A) PartialAudit (A) Porter Lawler
(B) ContinuousAudit (B) McCleland
(C) lnterimAudit (C) StacyAdams
(D) Balance SheetAudit (D) Vroom

tw - 13t12 ( 11 ) (Turn over)

82. Match the following theories of (B) Appraise the company
'Motivation'with the corect code of
direction and strategy
matching:
(C) lnstitute a compensation plan
(a)Frederic (i) HierarcfryofNeeds
for senior executives for
Hezberg serving the shareholder's
(b) Sigmund Freud (ii) Epedancyllreory interests
(c) Abraham Maslow (iii) Twofactortheory (D) lnterfere into the day-to-day
(d)VictorVroom (iv) Theoryof functioning of the company
Personality
86. The power that is derived from the
Code :
personal ability to control the
(a) (b) (c) (d) distribution of rewards is called :

(A) (iv) (ii) (i) (iii) (A) Referent power

(B) (ii) (iii) (i) (iv) (B) Reward power
(c) (iii) (iv) (i) (ii) (C) Legitimate power
(D) (iv) (iii) (ii) (i) (D) Expert power
83. The theory of division of labour for
87. Sensitivitytraining is known as:
efficiency was propounded by :
(A) Tgroup training
(A) Henery Fayol
(B) Operative training
(B) F. W. Taylor ' (C) Problem solving training
(C) Maslow
(D) ln basket exercise
(D) McGregor
88. lnterrelated systems working
84. As per Maslow's Need-HierarchY
together by processing, storing and
theory the basic/lowest need in the
retrieving information to facilitate the
pyramid is:
decision making regarding the
(A) Physiological
human resource management is
(B) Safety need called:
(C) Belongingness (A) Human resource information
(D) Self-actualization system

85. Which of the following is notthe key (B) ExecutivesupPortsYstem

function of board of directors ? (C) Management information
(A) AssessthecomPanYfinancials system
and rePorting Practices (D) None of these
rw- 13/12 (12) Contd
89. A training technique in which the (B) Prospecting and qualifying-
traineeswatch the bestwayof doing Pre approach-Overcoming
an activity, then allowed to perform objections-Closing-Presentation
the act in a simulated situation and
and demonstration-follow up
appraised by the superioris called :
and maintenance
(A) Vestibule training
(C) Overcoming objections-
(B) BehaviourModelling
Prospecting and qualiffing-Pre
(C) lnformaltraining
approach-Presentation and
(D) On job training
dem o n stratio n-C los i n g-fol low

90. Which of the following is a work- up and maintenance

related stress behaviour in which the (D) Prospecting and qualifying-Pre
employees feel emotional exhaustion,
approach-Presentation and
cynicism and reduced feeling for
d emonstratior:C los ing-
personal accomplishment ?
Overcoming objections-follow
(A) Job bumout
up and maintence
(B) Job exhaustion
(C) Stress 93. The price setting strategy which

(D) Workoverload bases the consumers' perceived

value in determining the price is
91. Which of the following is not a medium
called:
of socialmedia marketing ?
(A) Mark-up pricing
(A) Online communities and
forums
(B) Perceived value pricing

(B) Blogs (C) Value pricing

(C) Social networks like twitter (D) EDLP
(D) SMS 94. ln brand resonance model, the
92. The orderof steps in personalselling basic building block of brand equity
are is:
(A) Prospecting and q ualiff ing-Pre (A) Brand performance
approach-Presentation and
(B) Brand imagery
demonstration-Overcom in g
objections-Closing-follow up
(C) Brand salience

and maintenance (D) Brand judgement

lw - 13t12 (13) (Tum over)

95. As perAnsoff matrix, educating and 98. Find out the present value of
developing markets for etectric investment which is expected to give
vehicles comes under: a return of Rs. 2,500 p.a'' indefinitely

(A) Market penetration and the rate of interest is 12% p.a.

(B) Marketdevelopment (A) Rs. 10,000.23

(C) Marketdiversification (B) Rs.20,833.33
(D) Productdevelopment (C) Rs.30,155.33
(D) Rs.22,000.00
96. The primary goal of financial
management is :
99. Secondary market is :

(A) lncrease the profits of company (A) Place where new shares are
issued
(B) Ensure balance between
profits and environment
(B) Place where only a selected
few individuals can bid for
(C) Shareholder wealth
shares
maximization
(C) Place where new shares are
(D) Customersatisfaction traded
97. Which of the following is tru.e with (D) Place where outstanding
reference to cost of capital ? shares are traded

(A) Cost of capita! does not 100. Which of the following is related to
comprise of any risk premium 'Net Present Vatue' method ?
(B) Risk-free interest rate and cost (A) Discounted cash flow
of capital are same things approach
(C) Different sources of funds have (B) Non-discounted cash flow
a specifi c cost of capital related approacli
to that source onlY (C) Traditionalapproach
(D) Different sources oJfunds have (D) The approach of managing
same cost of capital liability

rtlrtrltrltrrrl

tw - 13112 (14) Contd.

 SPACE FOR ROUGH WORK

tw -13t12(4,875) (15) Commerce

 !-E

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