ACHIEVER’S COLLEGE OF COMMERCE & MANAGEMENT

TYB.COM – SEMESTER V (MHRM)

QUESTION BANK

# Select the most appropriate option :

1. Good marketing is no accident, but a result of careful planning and ________.

(a) Execution
(b) Selling
(c) Strategies
(d) research

2. Marketing management is ________

(a) managing the marketing process.
(b) monitoring the profitability of the company’s products and services.
(c) the art and science of choosing target markets and getting, keeping, and growing
customers through creating, delivering, and communicating superior customer
value.
(d) developing marketing strategies to move the company forward

3. Chimney Sweeps employs people to clean fireplaces and chimneys in homes and apartments.
The firm is primarily the marketer of which one of the following?
(a) An image
(b) A service
(c) A good
(d) An idea

4. Marketers often use the term ________ to cover various groupings of customers.
(a) people
(b) buying power
(c) demographic segment
(d) market

5. The ________ concept holds that consumers and businesses, if left alone, will ordinarily not
buy enough of the organization’s products.
(a) production
(b) selling
(c) marketing
(d) holistic marketing

6. Which of the following would be the best illustration of a subculture?

(a) A religion.
(b) A group of close friends.
(c) Your university.
(d) Your occupation.
7. The buying process starts when the buyer recognizes a _________.
(a) product
(b) an advertisement for the product
(c) a salesperson from a previous visit
(d) problem or need

8. If actual performance exceeds the expected performance of the product, Then customer is
__________
(a) Satisfied
(b) Dissatisfied
(c) Delighted
(d) Neutral

9. Bread and milk are which kind of products?

(a) Specialty Products
(b) Convenience products
(c) Shopping products
(d) Unsought products

10. Parents buy toys for their children act as _______________ in the buying process.
(a) Decider
(b) Buyer
(c) Maintainer
(d) All of the above

11. If a firm is practicing ____________________, the firm is training and effectively motivating its
customer contact employees and all of the supporting service people to work as a team to provide
customer satisfaction.
(a) double-up marketing
(b) interactive marketing
(c) service marketing
(d) internal marketing

12. A cluster of complementary goods and services across diverse set of industries is called as
________
(a) Market place
(b) Meta market
(c) Market space
(d) Resource Market

13. Adding new features to a product is advocated by which of the approaches?

(a) Product Approach
(b) Production Approac
(c) Marketing Approach
(d) Selling Approach

14. One of the key tasks of marketers is ____________ and to create consumer perceptions that the
product is worth purchasing.
(a) To make products easily visible and available
(b) To promote sales of products
(c) To differentiate their products from those of competitors
 (d) To do marketing surveys

15. What is the last stage of the consumer decision process?

(a) problem recognition
(b) post purchase behavior
(c) alternative evaluation
(d) purchase

16. ________ markets are made up of members of the distribution chain.

(a) Consumer
(b) Business-to-business (industrial)
(c) Channel
(d) Institutional

17. Which of the following is considered a “key player” in the marketing industry?
(a) marketer suppliers
(b) vendors
(c) distributors or retailers
(d) all of the above

18. A transaction in which the organization is making an initial purchase of an item to be used to
perform a new job refers to which of the following purchases?
(a) Straight re-buy purchase
(b) Delayed purchase
(c) New-task purchase
(d) Modified rebuy purchase

21 .________ markets include a wide variety of profit and nonprofit organizations, such as hospitals,
government agencies, and schools, which provide goods and services for the benefit of society.
(a) Consumer
(b) Business-to-business (Industrial)
(c) Reseller
(d) Institutional

22. Which of the following is NOT considered a type of reseller?

(a) wholesaler
(b) retailer
(c) manufacturer
(d) distributor

23. The promotion “P” of marketing is also known as ________.

(a) Product Differentiation
(b)Distribution
(c) Cost
(d) Marketing Communication
24. When a company distributes its products through a channel structure that includes one or more
resellers, this is known as ________.
(a) Indirect marketing
(b) direct marketing
(c) multi-level marketing
(d) integrated marketing

25. In marketing theory, every contribution from the supply chain adds ________ to the product.
(a) value
(b) costs
(c) convenience
(d) ingredients

26. Listing alternatives that will solve the problem at hand and determining the characteristics of each
occurs during which stage of the final consumer’s decision process?
(a) Information search
(b) Purchase
(c) Evaluation of alternatives
(d) Post purchase

27. The act of trading a desired product or service to receive something of value in return is known
as which key concept in marketing?
(a) product
(b) exchange
(c) production
(d) customer

28. The most basic level of a product is called the:

(a) core product.
(b) central product.
(c) fundamental product.
(d) augmented product.

29. Anything that can be offered to a market for attention, acquisition, use, or consumption that might
satisfy a want or need is called a(n):
(a) idea.
(b) demand.
(c) product.
(d) service.

30. In ________ consumers may share a strong need that cannot be satisfied by an existing product.
(a) negative demand
(b) latent demand
(c) declining demand
(d) irregular demand
31. Marketing is both an “art” and a “science” there is constant tension between the formulated side of
marketing and the ________ side.
(a) creative
(b) selling
(c) management
(d) behavior

32. Mr. Lopez buys goods and services for use in the production of products that are sold and
supplied to others. Mr. Lopez is involved in ________.
(a) consumer buying behavior
(b) post-purchase dissonance
(c) retail buyer behavior
(d) business buyer behavior

33. The four unique elements to services include:

(a) Independence, intangibility, inventory, and inception
(b) Independence, increase, inventory, and intangibility
(c) Intangibility, inconsistency, inseparability, and inventory
(d) Intangibility, independence, inseparability, and inventory

34. The ________ holds that the organization’s task is to determine the needs, wants, and interests
of target markets and to deliver the desired satisfactions more effectively and efficiently than
competitors in a way that preserves or enhances the consumer’s and the society’s well being.
(a) customer-centered business
(b) focused business model
(c) societal marketing concept
(d) ethically responsible marketing

35. A change in an individual's behavior prompted by information and experience refers to which one
of the following concept?
(a) Learning
(b) Role selection
(c) Perception
(d) Motivation

36. Holistic marketers achieve profitable growth by expanding customer share, ________, and
capturing customer lifetime value.
(a) undermining competitive competencies
(b) building customer loyalty
(c) milking the market for product desires
(d) renewing a customer base

37. ________ pricing is the approach of setting a low initial price in order to attract a large number of
buyers quickly and win a large market share.
(a) Market-skimming
(b) Value-based
(c) Market-penetration
(d) Leader
38. While buying milk which kind of behaviour is displayed by a person?
(a) Extensive problem solving behaviour
(b) Routinized buying behaviour
(c) Variety seeking behaviour
(d) None of the above

39.________ markets include a wide variety of profit and nonprofit organizations, such as hospitals,
government agencies, and schools, which provide goods and services for the benefit of society.
(a) Consumer
(b) Business-to-business (Industrial)
(c) Reseller
(d) Institutional

40. Which of the following is NOT considered a type of reseller?

(a) wholesaler
(b) retailer
(c) manufacturer
(d) distributor

41. The promotion “P” of marketing is also known as ________.

(a) Product Differentiation
(b) Distribution
(c) Cost
(d) Marketing Communication

42. When a company distributes its products through a channel structure that includes one or more
resellers, this is known as ________.
(a) indirect marketing
(b) direct marketing
(c) multi-level marketing
(d) integrated marketing

43. In marketing theory, every contribution from the supply chain adds ________ to the product.
(a) value
(b) costs
(c) convenience
(d) ingredients

44. Listing alternatives that will solve the problem at hand and determining the characteristics of each
occurs during which stage of the final consumer’s decision process?
(a) Information search
(b) Purchase
(c) Evaluation of alternatives
(d) Post purchase
45. The act of trading a desired product or service to receive something of value in return is known
as which key concept in marketing?
(a) product
(b) exchange
(c) production
(d) customer

46. The most basic level of a product is called the:

(a) core product.
(b) central product.
(c) fundamental product.
(d) augmented product.

47. Anything that can be offered to a market for attention, acquisition, use, or consumption that might
satisfy a want or need is called a(n):
(a) idea.
(b) demand.
(c) product.
(d) service.

48. In ________ consumers may share a strong need that cannot be satisfied by an existing product.
(a) negative demand
(b) latent demand
(c) declining demand
(d) irregular demand

49. Marketing is both an “art” and a “science” there is constant tension between the formulated side of
marketing and the ________ side.
(a) creative
(b) selling
(c) management
(d) behavior

50. Mr. Lopez buys goods and services for use in the production of products that are sold and
supplied to others. Mr. Lopez is involved in ________.
(a) consumer buying behavior
(b) post-purchase dissonance
(c) retail buyer behavior
(d) business buyer behavior
ACHIEVERS COLLEGE OF COMMERCE & MANAGEMENT
KALYAN
Class: T.Y.Bcom Subject: Purchasing & Storekeeping (Semester-5 ATKT)

1) ------ controls the consumption of materials.

(Materials budget, Invoice, Lead time, Material research)
2) Purchase requisition is sent to the -------------department for purchasing the materials.
(sales, purchase, finance, Production)
3) --------- price which brings the best value invested in purchasing the materials.
(Market, Right, Lowest, Highest)
4) _________ department maintained records of all purchases.
(Production, Finance, Purchasing, Storekeeping)
5) _______ purchasing required less staff.
( Decentralized, centralized, International, Inspection)
6) _______ purchasing required more staff.
( Decentralized, centralized, International, )
7) ______ collects orders on behalf of the exporter.
(Indent house, Speculator, Purchaser, Seller )
8) _______ contract between the purchaser & vendor.
(Tender, Purchase order, Price list, lead time)
9) ________ of material involves grouping of items according to same criteria.
(codification, Storekeeping, Classification, standardization)
10) ________ deals with all aspects of materials supply and utilization as well as cost.
(Materials Management, Material requirement planning, E-Material Management, Raw
material)

11) _________ is concerned with maintaining material, safeguarding of undertakings/

property in the form of materials, proper recording of receipts and consumption of
material and balance in stock.
(Cost of material, Accounting Control, Operating Control, Production planning control)
12) ________ is the process of buying material.
( Material management, Procurement, Purchasing, Buying)
13) __________ is a production planning and inventory control system used to manage
manufacturing processes.
(Material requirement planning, Material management, Integrated material management,
Raw material)
14) _________ is a co-ordinated estimated of the consumption and purchase of materials.
(Manual budget, Material budget, Committee budget, None of the above)
15) _______ is the scientific way of determining the requirement of raw materials, the
components parts & other items that go into meeting the production needs.
(Material requirement planning, Material management,Integrated material management,
Cost of material)
16) _____ is the documentary evidence to supply goods specified in the order.
(Tender, Purchase order, Price list, sales order)
17) ________ is one who purchases goods & services for business purpose.
(consumer, Buyer, Middlemen, saler)
18) ______ makes purchase for self-consumption or for business purpose.
(consumer, Buyers, Middlemen)
19) _______ is also known as consumer & common consumer.
ACHIEVERS COLLEGE OF COMMERCE & MANAGEMENT
KALYAN
Class: T.Y.Bcom Subject: Purchasing & Storekeeping (Semester-5 ATKT)

(Industrial buyer, Ultimatebuyer, Government buyer, middlemen)

20) _______ do co-operate in buying process and are more often perfect buyers.
(Seasonal consumer, talkative consumer, Organized consumer, Shy Consumer)
21) _______ is neither buyer nor the consumer , he is the facilitator of trade transection.
(Industrial buyer, Government buyer, Middlemen, ultimate buyer)
22) An inventory not finally produced but still to go to manufacturing process is called _____.
(Finished Goods, work-in-progress, Stock, Raw material)
23) _______ refers to the performance of material management function according to the
basic principles of e-business.
(Material requirement planning, Cost of material, Material management, E-materials
management)
24) _________ is division of materials into different groups based on similarities or technical
affinity.(codification, Storekeeping, Classification, Standardization)
25) ________ is responsible for co-ordinating the efforts of all function departments.
(General manager, purchase manager, Sales manager, personal manager)
26) _______ is based on the principle, ”Do unto your customers as you would have them do
unto you”. (Speculative buying, Reciprocal buying, conservative buying, Concentrated
purchasing)
27) _______ is usually made in forward buying by which goods will have to be delivered over a
specified period.(Market purchasing, contract purchasing, Centralized purchasing,
Decentralized purchasing)
28) ________ is applied in purchasing small item.
(Group purchasing, Centralized purchasing, Decentralized purchasing, Market purchasing)
29) _______ exists when the responsibility for the entire purchasing function is assigned to a
single individual.(Group purchasing,Centralized purchasing, Decentralized purchasing,
None of the above)
30) In __________, each item is denoted by a combination of the alphabets.
(numerical codification, alphabetical codification, alpha-numeric codification, All of the
above)
31) ________ is the process of implementing and developing technical standards based on the
consensus of different parties that include firms, users, interest groups, standards
organization.
(Standardisation, codification, Classification, Speculation)
32) ________ is an important decision to buy some parts or components from outside or
manufacturing in one’s own plant.
( Make or buy, Forward buying, Buyer & seller, None of the above)
33) E-material management helps to reduce _______.
(Paperwork, Material handling, lead time, Stock)
34) _____ is a bill of a sale transection showing the amount to be paid by the buyer.
( Proforma invoice, Invoice, Hedging, Speculation)
35) An activity having an uncertain result or an activity of buying & selling of goods & services
in the future market is_______.(Hedging, proforma, Invoice, Speculation, )
36) ______ is concerned with maintaining materials at the optimum level keeping in view the
operational requirements and the financial resources at the business.
(Production planning & control, Accounting Control, Operating Control, cost of control)
ACHIEVERS COLLEGE OF COMMERCE & MANAGEMENT
KALYAN
Class: T.Y.Bcom Subject: Purchasing & Storekeeping (Semester-5 ATKT)

37) A ________ is issued by the importer’s bank in favour of the exporter.

(letter of credit, Bill of leading, Certificate of origin, Bill of entry)
38) ______ mean giving or assigning a symbol or a code number.
(Codification, Classification, Speculation, Standardisation )
39) Codification of material are steps in maintaining ______ in a systematically way.
( transportation, stores, purchase department, indent house)
40) _____on the other hand means buying the material from different suppliers and
considering the time, delivery, cost & quality.
(Speculative buying, Reciprocal buying,Diversified buying, Concentrated purchasing)

41) ______ is a written request to the purchase department by a foreman or other

authorized officer of the user department to replenish the material needs.
( selection of supplier, purchase requisition, purchase order, inspection of material)
42) _________shows all the bills sent from the department.
(foreign invoice, inward invoice, outward invoice, Proforma invoice)
43) _________shows all the communication received in the department.
(foreign invoice, inwardinvoice, outwardinvoice, Proforma invoice)
44) _______ is the evolution of the vendor.
(purchase order, contract order, vendor record, vendorrating)
45) ________ constitute an important source of information about possible suppliers.
(Trade directories, Trade journals, Telephone directories, supplier’s catalogues)
46) ______ type of consumer are unplanned in decision making.
(Seasonal consumer, impulsive consumer, Organized consumer,Shy Consumer)
47) _______ increased made by the suppliers should be done on a regular basis and their
impact should be related to the cost of finished product.
( suppliers analysis, priceanalysis, economic analysis, market analysis)
48) The material department helps the ________ department in selling as a low a cost as
possible, so that the company can maintain a competitive selling position.
( Market, Inspection, production, purchase)
49) Incoming goods are first checked for quality, quantity, and other specifications, by ______
department.(Market, Inspection, production, purchase)
50) _______ is a system which ensures the provision of the required quantity of inventories of
required qualities at the required time the minimum amount of capital investment.
( quality control, inventorycontrol, transport control, production control)
 ACHIEVER’S COLLEGE OF COMMERCE & MANAGEMENT
TYB.Com – SEMESTER V (DIRECT & INDIRECT TAXES)
QUESTION BANK
# Select the most appropriate option :

1. Income Tax Act was passed in the year _________.

A. 1947
B. 1950
C. 1961
D. 1991
2. Life Insurance Corporation of India is a _______________.
A. AOP
B. Firm
C. Company
D. Individual
3._____ is an artificial person registered under Indian Companies Act 1956.
A. Individual
B. Company
C. Firm
D. Local Authority
4. Which one of the following taxes is not levied by the State Government?
A. Entertainment tax
B. VAT
C. Professional tax
D. None of the above

5. The first income tax act was introduced in the year

A. 1918
B. 1861
C. 1860
D. 1886
 6. The apex body of Income Tax Department. is
A. Finance Ministry of Central Govt.
B. Central Govt. of India.
C. CBDT
D. Dept. of Revenue

7. Income received or deemed to be received in India (whether accrued in or outside India) is

taxable in case of
A. Resident
B. Not Ordinarily Resident
C. Non Resident
D. All of the above
8.Income Tax Act, which is still in force in India, was enforced in

A. 1922

B. 1961
C. 1860
D. None of the above

9. Mr. X has started has business from 1st Sept '16 and does not have any other source of
income. His first previous year will start from

A. 1st April '16

B. 1st Sept '16
C. Any of the above
D. None of the above.
10. According to Section 2(7) of Income Tax Act "Assessee" means a person
A. By whom any tax or other sum of money is payable
B. By whom any proceeding under the Act has been taken
C. Who is deemed to be an assessee in default under any provision of this
Act
D. All of the above
11. The house rent allowance (HRA) under the salary head of Income Tax Act is given
by _____________.
A. Section 10
B. Section 10(13A)
C. Section11(13B)
D. Section11

12.Children Education allowance is exempted for ______ child/ children

A.One
B.Two
C.Three
D.Four

13. Pension is _______________ under the salary head.

A.Fully taxable
B.Partially taxable
C.Not taxable
D.None of the above

14. The salary, remuneration or compensation received by the partners is taxable under the
head _______________.

A. Income from Other Sources

B. Income from Business
C. Salary
D. None of the above
15. The death-cum-retirement gratuity received by the Government Employee or
employee of local authority is _______________.

A. Partially exempted
B. Fully exempted
C. Half taxable
D. None of the above
 16. Under Section 15 of Income Tax Act, the salary due in previous years and even if it is
not received is _______________.

A.Taxable
B.Not taxable
C.Partially taxable
D.None of the above

17. Provident Fund Act was passed in the year ___________.

A. 1932
B. 1956
C. 1925
D. 1922
18. Rent Free Accommodation given to an employee by the employer is a ____________.
A. Allowance
B. Perquisite
C. Profit in lieu of salary
D. None of the above
19. The Payment of Gratuity Act came into force in_______________.
A.1973
B. 1980
C.1991
D.1972
20. The entertainment allowance is applicable to_______________.
A. Private sector employees
B. Public sector employees
C. Government employees
D. All of the above
21. _______ is the rent fixed under Rent control Act.
A. Municipal rental value
B. Fair rental value
C. Standard rent
D. Real rent
22. Expected Rent can be determined in the following way
A. Higher of Municipal Value & Fair Rent
B. Lower of Municipal Value & Fair Rent
C. Higher of Municipal Value & Fair Rent subject to maximum of Standard
Rent
D. Any of the above

23. Under the Head Income from House Property, the basis of charge is the ______________
of property.
A. Annual value
B. Quarterly value
C. Half-quarterly value
D. None of the above
24. Mr. Ram owns a house property. He lent it to Laxman at`10,000 p.m. Laxman sublet it
to Mr.Maruti on monthly rent of`20,000 p.m. Rental income of Ram is taxable under the
head ______________.

A. Income from Salary

B. Income from Other Sources
C. Income from House Property
D. Income from Business

25. Mr. Ram owns a house property. He lent it to Laxman at`10,000 p.m. Laxman sublet it to
Mr. Maruti on monthly rent of`20,000 p.m. Rental income of Laxman is taxable under the
head ______________.

A.Income from Salary

B.Income from Other Sources
C.Income from House Property
D.Income from Business
 26. The value of concessional loans to employees is determined on the basis of lending rates
of ___________ for the same purpose.

A. SBI
B. RBI
C. Central Government
D. State Government
27. Deduction from annual value is allowed under ______________.

A. Section 24
B. Section 25
C. Section 27
D. Section 28

28. _______% standard deduction is allowed on annual value.

A. 20
B. 30
C. 40
D. 50
29. For computation of Gross Annual Value, if actual rent is more than expected rent, then we
select the ______________.

A. Actual rent
B. Expected rent
C. Any of the above
D. None of the above
30. Under the Income Tax Act, 1961, depreciation on machinery is charged on
________.

A. Purchase price of the machinery

B. Written down value of the machinery
C. Market price of the machinery
D. All of the above
31. Income chargeable under the head ‘Profits and Gains from Business or Profession’ is
covered under _______________.
A. Section 23
B. Section 24
C. Section 28
D. Section 27
32. The transfer of old movable assets will be tax-free if it is used for _________ .
A. 1 year
B. 5 years
C. 10 years
D. 15 years
33. _________ are not treated as agricultural income.
A. Income from poultry farming
B. Income from bee heaving
C. Purchase of standing crop
D. All of the above

34. Section 45 of Income Tax Act, 1961 is related to _______________.

A. Capital assets
B .Assets
C.Capital expenses
D.Capital gain
35. Long-term Capital Loss can only be set off against _______________
A. Long-term capital loss
B. Short-term capital loss
C. Long-term capital gain
D. All of the above
 36. Loss from speculation business cannot be set off against profit from any non-speculation
business, however __________.

A. Loss from non-speculative business can be set off against speculation

income

B. Loss from non-speculative business cannot be set off against speculation

income

C. Profit from non-speculative business can be set off againstspeculation

income

D. None of the above

37. In Income Tax Act, 1961, deduction under sections 80C to 80U cannot exceed ________.

A. Gross total income

B. Total income
C. Income from business or profession
D. Income from house property
38. Gross interest = Net x 100/100 – rate of _______.
A. Tax
B. TDS
C. Deduction
D. Exempted
39. Payment of LIC premium can be claimed as deduction u/s _______
A. 80 C
B. 80 CCC
C. 80 D
D. 80 DD
40. Clubbing of income means _______________.
A. Addition income of two partners
B. Inclusion of income of other person in assessee income
C. Total of income of various heads
D. Collection of income
41. Minors income is clubbed to _______________.
A. Father ’ s income
B. Mother ’s income
C. Father’s income or mother’s income whichever is greater
D. Both mother’s and father’s income
42. As per Section 207, _______ not having any income from business or profession is not
liable to pay advance tax.

A. A resident individual who is of the age of below 60 years

B. A resident HUF
C. A nonresident individual
D. A resident senior citizen
43. Generally, long-term capital gain is charged to tax @___________ (plus surcharge and
cess as applicable).
A. 10%
B. 15%
C. 20%
D. 30%
44. Mr. Sharma contributed to a political party, he can avail deduction under ________
A. Section 80G
B. Section 80GGB
C. Section 80GGC
D. Section 80GGD
45. Rate of education cess on total income is ___________.
A. 2%
B. 3%
C. 4%
D. 0.3%
46. Section 70-79 deals with _____.
A. Salary
B. Capital gain
C. Clubbing of income
D. Set off and carry forward
47. Income from horse race falls under the head _____.
A. Salary
B. Other sources
C. Profession
D. Business
48. Deduction can be claimed for amount deposited under Suganya Samridhi Account
under ___.
A. 80 CC
B. 80 C
C. 80 DD
D. 80 D
49. Deduction on interest on loan taken for studies fall under _____.
A. 80 CC
B. 80 C
C. 80 E
D. 80 D

50. The amount of total income is rounded off to the nearest multiple of ____.

A. Rs.100
B. .Rs.10
C. Rs.5
D. Rs.50
 ACHIEVERS COLLEGE OF COMMERCE & MANAGEMENT
KALYAN
Class: T.Y.Bcom Subject: Business Economics (Semester-5 ATKT)

1Sarva Shiksha Abhiyan was launched in the year

a) 1991-92
b) 2003-04
c) 2001-02
d) 1995-96

2 RashtriyaSwasthyaBima Yojana was launched in the year

a) 2008
b) 2010
c) 2017
d) 2015

3 Which of there is not a SDG for India

a) Ending Poverty
b) Ending hunger
c) Building Infrastructure
d) Economic Prosperity

4 ______has been given the responsibility of coordinating the SDGS in India

a) Private Sector
b) Central Government
c) Finance Ministry
d) NITI Aayog

5 The Foreign Investment promotion Board was setup in _______.

a) early 1990
b) 2014
c) 2000
d) 1991

6 Which of the following is not a benefit of FDI

a) Sectorial Development
b) Dependency
c) Employment of creation
d) Transfer of technology

7 The highest contribution to FDI in India in April 2017 is from

a) Singapore
b) USA
c) UK
d) Mauritius

8 Which of the following is the merit of FDI

a) Increasing employment
b) Goods better quality of goods
c) Sectorial development
d) All of the above

9 FIPB was to look into FDI proposals worth_____

a) 05 June, 2014
b) 24 May, 2017
c) 20 June, 2015
d) 07 July, 2000

10 _____ is the back bone of the Indian economy.

a) Agriculture
b) Industry
c) Services
d) None of the above

11 The new agriculture policy was announced in the year _____.

a) 2000
b) 2010
c) 1999
d) 2008

12 The National Agriculture policy aims to achieve agricultural growth rate of _____.
a) 2%
b) 3%
c) 4%
d) 6%

13 Which of the following is the limitation of NAP 2000

a) Neglect small and marginal farmers
b) fails to cover all states
c) Both (a) and (b)
d) Limited states

14 _____ are the prices which farmer are assured to received.

a) Minimum support prices
b) Procurement prices
c) Issue price
d) Maximum support prices.

15 Agricultural price policy protect the interest of ____.

a) Producer
b) consumer
c) both (a) and (b)
d) market

16 Agricultural price policy has mainly benefited ______.

a) small farmers
b) big farmers and landlords
c) both (a) and (b)
d) consumer
17 Administered prices include______
a) minimum support price
b) procurement prices
c) issue prices
d) all of these

18 Buffer stock is the stock of food grains procured by the government through
a) IFCI
b) FCI
c) IDBI
d) FICCI

19 Institutional source of agricultural finance consists of ____

a) Commercial Bank
b) DHFL
c) UTI
d) LIC

20 Non-institutional source of agricultural finance consists of______

a) Money lenders
b) Relatives and friends
c) Traders
d) All of the above

21 Primary agricultural credit societies operate at ____

a) State level
b) District level
c) Village level
d) National level

22 ____ is an apex bank for rural sector.

a) NABARD
b) Commercial bank
c) Foreign bank
d) LIC

23 RRBs provide credit to _______

a) Small and marginal farmers
b) landholder
c) Industry
d) a and b

24 Agricultural finance has played a crucial role in bringing___

a) Green Revolution
b) White Revolution
c) Yellow Revolution
d) all of the above

25 The problems of agricultural marketing include_____

a) distress sales
b) regulated markets
c) provide credit facilities
d) both c and d

26 _______provide agricultural marketing related information.

a) FCI
b) PMGSY
c) AGMARK
d) None of the above

27 ____ is online trading portal

a) e NAM
b) Food Corporation of India
c) Central warehousing Corporation
d) State Corporation of India

28 Regulated Markets provides useful marketing services to ________

a) Producers
b) Consumers
c) both (a) and (b)
d) Market

29 Regulated markets aim to ________

a) eliminate market practice
b) lack of marketing service
c) lack of interest of farmers
d) Provide market share

30 Competition amendment bill was introduced in the year _________

a) 2003
b) 2007
c) 2000
d) 2002

31 The competition Act, 2003 was introduced by ________

a) S.V.S. Raghavan
b) G.K. Ramkrishnan
c) R.H. Patil
d) Krishnamurthy

32 Disinvestment implies ________

a) Privatization
b) Strategic sale
c) Sale of treasury Bill by RBI
d) Globalisation

33 _________ Sector is the driver of economic growth in india.

a) Industrial
b) Service
c) Agriculture
d) Banking Sector
34 ________ sector has been opened up for competition.
a) Insurance
b) Agriculture
c) Retail
d) Service

35 The services sector contributed _______% to GVA of India during 2016-17.

a) 10.3
b) 7.7
c) 8.1
d) 9.1

36 The number of local Area Banks reduced to _______.

a) 2
b) 3
c) 4
d) 1

37 The full form of PIN is _______.

a) Portal Identification Number
b) Postal Indentification Number
c) Personal Identification Number
d) Particular Identification Number

38 Which of the following India banks started its credit card first
a) SBI
b) Central Bank of India
c) Bank of India
d) Yes Bank

40 When was Life Insurance sector was nationalilized?

a) 1834
b) 1907
c) 1912
d) 1956

41 When was General Insurance Corporation formed?

a) 1972
b) 2001
c) 2015
d) 2018

42 Which are the main objectives of IRDA?

a) regulated insurance sector
b) develop insurance sector
c) promote competition in insurance sector
d) all of these
43 Certificate of Deposits (CDs) are issued by _________.
a) Scheduled Commercial Banks
b) Regional
c) Local Area bank
d) BSE

44 Money market is a market for _______.

a) Short term funds
b) Medium term funds
c) Long term funds
d) Stock exchange

45 Certificates of deposits (CDs) are issued by ________.

a) Commercial Banks
b) Foreign Bank
c) Regional Rural Banks
d) Local Banks

46 _______ is the apex organization of the Indian money markets.

a) World Bank
b) UTI
c) RBI
d) GIC

47 DFHI is owned by _________.

a) RBI
b) LIC
c) Non Financial Institutions
d) UTI

48 In India rolling settlement period is ________.

a) T + 1 day
b) T + 2 days
c) T + 4 days
d) T + 6 days

49 The primary market does not include _______.

a) Equity issues
b) GDR issues
c) Debt issues
d) Screen based trading

50 SEBI got a legal status in the year _______.

a)1988
b) 1992
c) 1991
d) 1996
 Achievers College of Commerce & Management,
Kalyan (w)
Financial Accounting (Sem 5)
TY.BCOM

1. Dividends are usually paid on___________________

A. authorised capital
B. issued capital
C. reserve capital
D. paid-up capital
2. Increase ,consolidation or sub-division of share capital of the company
involves______
A. Alteration of Share Capital
B. Variation of Shareholder‟s Rights
C. Compromise/Arrangement
D. Reduction of Share Capital
3 According to S. 68,before buy-back ,all the shares_____________
A. must be fully paid-up
B. must be fully issued and subscribed to the extent of the authorised capital
C. must be held by the same shareholders for at least for one year d.
D. must be partly paid up
4 Which of the following items appears as an asset in the Balance Sheet of a
company_____?
A. Capital reserve
B. Retained earnings
C. Sinking fund investments
D. Securities Premium
5. The premium received on sale of Rights is credited to _____.
A. debited to profit and loss A/c
B. credited to shares A/c.
C. credited to profit and loss A/c
D. Debited to shares a/c
6. Obey certain ethical rules no matter what the results are ___________
A. Ethical relativism
B. Deontological ethics
C. Ethical absolutism
D. Theological ethics
7. Bonus shares received increases ________
A. nominal value of shares held
B. .cost of shares held
C. M.V. of shares held
D. Book value of shares
8. Buy-back of equity shares in any financial year shall not exceed 25% of its_________
A. Total paid-up equity capital in that financial year
B Total paid –up capital
C. Total Paid-up equity capital and free reserves of the company
D. Total nominal capital and free reserve of the company
9. Equity‟s shareholder‟s giving up their claim to the reserves and accumulated profits
amounts to__________

A. Reduction of Share Capital

B. Variation of Capital
C. Alteration of Share Capital
D. Compromise/Arrangements

10. The item “Interest Accrued in Investments” appear in the balance sheet of a company
under the category of________________
A. Loans & advances
B. investments
C. Current assets
D. Current Liabilities
11. Business Responsibility Reporting is mandatory___________
A. under the Companies Act,2013
B. for listed companies SEBI Regulation
C. under Accounting Standards
D. under Government Act,1935
12. A company cannot buyback more than__________ of its own funds
A. 10%
B. 15%
C. 35%
D. 25%
13. In Internal Reconstruction ____________________
A. No Company is liquidated
B. Two or more companies are liquidated
C. Only one company goes into liquidation
D. One or more companies go into liquidation
14. The cost of investment sold is to be calculated as per _____ method.
A. FIFO
B. LIFO
C. weighted average
D. simple average

15. Confidentially is a ___________________________

A. Threat to compliance with a fundamentals principle
B. Fundamental principle
C. Safeguard against threat to compliance with a fundamental principle
D. Accounting Principle
16. Following is an example of an accounting policy_____________
A. Entity
B. Conversion of foreign currency items
C. Going concern
D. Conservatism

17. The micro corporation Ltd. is authorised to issue 1,00,000 shares equity shares.it had
issued 30,000 shares. It has bought back 5,000 shares. As a result of these transactions. The
no. of shares (i) in authorised share capital and (ii) in issued share capital will
be___________
A.1,00,000: 25,000
B. 75,000; 25,000
C. 10,00,000 ;30,000
D. 75,000; 30,000

18. The existing 1,000 shares of Rs 100 each are altered to 10,000 shares of Rs 10 each. This
is known as _____________
A. Consolidation
B. Sub-division
C. Conversion ins stock
D. Surrender

19. Investment Account is debited for _____ on sale of investment.

A. Profit
B. Loss
C. Cash
D. Expenses

20.The__________ stage in Ethical education in concerned with Ethical Behaviour.

A. Initial
 B. middle
C. final
D. Second
21. According to AS 1, Disclosure should be made________________
A. In relevant places
B. At one places
C. in the profit & Loss account
D. in the balance sheet
22. Reduction of share capital of a company means reduction in______________________
A. Only called up share capital
B. Subscribed and/or paid-up share capital.
C. Only authorised capital
D. Only uncalled share capital
23. If equity shares have been bought back out of free reserves, amount equal to the face
value of equity shares bought back should be transferred to______________
A.Development Rebate Reserve
B.Sinking Fund
C.General Reserve
D.capital Redemption Reserve
24. The balance in interest column in Investment Account is transferred to _____
A. Profit & Loss Account A/c
B. Profit and Loss Appropriation A/c
C. Balance Sheet
D. Debenture A/c
25. The IFAC Code has ___________ part.
A. One
B. Three
C. Two
D. Five
26. Which of the following items does not appear under the head “Reserve and Surplus‟
the balance sheet?
A. General Reserve
B. Unclaimed dividend
C. Sinking Fund
 D. Securities Premium
27. Which of the following is not classified as inventory in the financial statements?
A. Finished Goods
B. Work-in-Progress
C. Stores and spares
D. Advance payment to supplier for raw material
28. Surrender of fully paid shares amounts to______________
A. Reduction of Share Capital
B. Alteration of Share capital
C. Variation of Shareholder‟s Rights
D. Compromise/Arrangement
29. According to S 68, every buyback shall be ________________________
A. Completed within 12 months from the date of passing the special resolution
B. Completed within 12 months from the date of authorization by the article of
association
C. Completed within 12 months from the date of the shares becoming fully paid-up
D. Completed not before 12 months from the date of passing the special resolution
30. The interest on investment is to be calculated on _____ of investment.
A. Number shares held
B. Face value of shares
C. Market value of shares
D. Number of shares subscribed
31. Ethics vary between different ages and different communities______________
A. Ethical relativism
B. Deontological ethics
C. Ethical absolutism
D. Theological ethics
32. X purchased 2,000 equity shares of y ltd. at cost of ` 125 per share on 1st March 2010.
These shares are held as current investment. on 31st March 2018 m.v. of shares was ` 115 per
share. The carrying amount of investment is ____.
` A. 2,50,000
 B. 2,30,000
C. 4,80,000
D. 2,00,000
33. Which of the following is a “free reserves” for the purpose of buyback of shares_____
A. Workmen‟s Compensation Fund
B. Capital Redemption Reserve balance
C. Debenture Redemption Reserve
D. Shares Forfeited Account
34. Repayment of any paid-up shares capital which is in excess of the wants of the
company, in a scheme of reconstruction, amounts to___________
A. Reduction of Share Capital
B. Alteration of Share capital
C. Variation of Shareholder‟s Rights
D. Compromise/Arrangement
35. Losses tools are required to be shown under__________________
A. Fixed asset
B. Current asset
C. Reserves & Surplus
D. Long term borrowing
36. Corporate Governance provisions in India are to be found in______________
A. the Companies Act, 2013
B. the SEBI Listing Agreement Clause 49
C. both (A) and (B)
D. Government Act, 1935
37.Which of the following is true?______________
A. Buy-back can be out of free reserve +securities premium
B. Buy-back can be only out of free reserves, it cannot be out of securities premium
C. Buy-back can be only out of securities premium capital reserve
D. Buy-back can be only out of capital reserve
38. On cancelation of surrendered shares in a scheme of reconstruction_________
A. Share Capital A/c will be credited
 B. Capital Reduction A/c will be credited
C. Capital Reduction A/c will be debited
D. Share Surrendered A/c will be credited
39. Equity share is a _____ income bearing security.
A. Brokerage
B. Book closure
C. Fluctuating
D. Fixed
40. Whistle blowing is a ________________________________
A. Threat to compliance with a fundamental principle
B. Fundamental principal
C. Safeguard in the work environment
D. Accounting Principle
41. The broad headings under which balance sheet is divided under the Schedule III are
__________
A. „liabilities and assets‟
B. „equity and liabilities and assets‟
C. „sources of funds‟ and „application of fund‟
D. „current‟ and „non-current
42. Which of the following is not a „free reserves‟ for the purpose of buyback of shares___
A. Profit & Loss A/c
B. General Reserve
C. Dividend Equalisation Reserve
D. Revaluation Reserve

43. The existing 1,000 shares of Rs 1 each are altered to 100 shares of Rs 10.This is known as
____________
A.Consolidation
B. Sub-division
C.Conversion in stock
D. Surrender
44.The dividend received for pre-acquisition period is credited to _____ Account.
A. Investment
B. shares or debentures
C. brokerage
D. dividend
45.Ethics Knowledge is the focus of the ______________ stage in Ethics Education
A. 1st
B. 2nd
C. 3rd
D. 4th
46. Which of the following denotes the dividend declared by the directors between two
annual general meetings_____________
A. Proposed dividend
B. Interim dividend
C. Final dividend
D. Unpaid dividend
47. Balance in Capital Reduction A/c is generally transferred to_____________
A. General Reserve
B. Profit & Loss A/c
C. Capital Reserve A/c
D. Securities Premium A/c

48. After Buy-back of shares, Debt- equity ratio should not exceed _____________
A. 2:2
B. 1:2
C. 3:1
D. 2:1
49. The brokerage and stamp duty paid at the time of purchase is _____
A. added to cost
B. investment
 C. shares or debentures
D. less form cost
50. Conceptual Framework laid down in IFAC Code is applied when__________
A. Threat is identified
B. Compromising circumstances
C. Evaluating significance of threats
D. Opportunities are there
 ACHIEVERS COLLEGE OF COMMERCE & MANAGEMENT,
KALYAN
TYBCOM SEM 5 – COST ACCOUNTING
1. Primary packing is a
a) Direct materials
b) Indirect materials
c) Overheads
d) Selling Cost
2. Cost of Grease and oil is a
a) Direct Cost
b) Indirect material
c) Packing Cost
d) Indirect Labour
3. Goods received note is normally prepared in
a) Six copies
b) five copies
c) four copies
d) five copies
4. Notional rent is taken in
a) Cost A/c
b) Financial A/c
c) Balance sheet
d) ignored
5. Overvaluation of closing stock in Cost Accounts
a) Increases costing profit
b) Decreases costing profit
c) Increases Financial profit
d) Decreases Financial profit
6. The process by which cost items are charged directly to a cost unit is called
a) Absorption
b) apportionment
c) allocation
d) allotment
7. Labour hour rate is calculated by the equation:
 a)
b)
c)
d)

8. The method of remuneration to give stability of labour cost of the employers is

a) Straight piece work
b) Premium Bonus
c) Measured Day work
d) Group Bonus
9. The flux rate method of labour turnover considers:
a) Employees left
b) employees joined
c) employees joined and left
d) employees replaced
10. Issue of materials during a period of time is priced at the latest purchase cost under:
a) FIFO
b) LIFO
c) Simple Average
d) Weighted Average
11. Under periodic inventory control
a) Stock is verified at the end of a certain period
b) Stock is verified continuously
c) Stock is verified everyday
d) Stock is verified after every transaction
12. Order should be placed with the supplier when the inventory touches :
Maximum Level Re-order level Minimum Level Danger Level
13. ABC analysis is a technique developed for
Inventory Management Inventory Control WIP Control Finished Stock control
14. Cost of designing and layout is an example of
Direct expenses Direct materials Indirect Cost Production Cost
15. Purchase order is a
Request to the supplier to supply materials request to the supplier to verify the stock
acknowledgement of goods sale invoice
16. Royalty paid on use of patents is called as:
Direct expenses Indirect expenses Production expenses Distribution expenses
17. A factory required 1,000 units per year. The cost of placing an order is Rs. 60 and
carrying cost is Rs. 3p.a. The EOQ is
200 150 600 450
18. Under perpetual inventory control
Stock is verified continuously
Stock is verified at the end of every quarter
Stock is verified periodically
Stock is verified after 3 months
19. Stores Department maintains a record in which a separate folio is maintained for each
item
Stores Ledger Bin Card Stock Register Bill of Materials
20. The workers who are entitled to wages on the basis of their output are called as
Piece workers Out workers Casual workers Badli workers
21. Labout turnover is
Turnover of Goods Turnover of Labour Stock Turnover Debtor’s Turnover
22. Under Halsey Premium Plan, ______% of time saved is shared by the employer
110 115 120 50
23. The difference between hours paid and hours worked is called
Idle time Standard time Normal time Time saved
24. The method of apportionment suitable for allocating rent of building between cost centres
Number of employees machine hours KWH Floor area
25. Direct expenses are also known as
Chargeable expenses prime cost variable cost period cost
26. The process of redistribution of overheads of support departments to production
department is called as:
Secondary distribution Primary distribution repeated distribution uneven distribution
27. Machine hour rate is calculated by the equation

a)
b)
c)
d)
28. Drawing office salaries is a :
a) Factory overhead
b) Office overhead
c) Selling overhead
d) Distribution overhead
29. Prime cost is equal to
a) Direct cost
b) Direct cost + factory overheads
c) factory cost
d) Cost of production
30. Opening stock of material is Rs. 5,000 purchases Rs. 30,000, closing stock of materials
Rs. 2,000. Cost of material used is
a) Rs. 33,000
b) Rs. 30,000
c) Rs. 35,000
d) Rs. 40,000
31. When allocating service department costs to production departments, the method that
does not consider different cost behavior pattern is the
a) Step method
b) reciprocal method
c) simple rate method
d) dual rate method
32. Under Taylor’s Differential Piece rate plan, the efficient workers are paid:
a) 100% of normal rate
b) 120% of normal rate
c) 150% of normal rate
d) 180% of normal rate
33. Wages in normal idle time should be charged to
a) Office overheads
b) factory Overheads
c) Selling Overheads
d) Distribution Overheads
34. The allotment of whole items of cost to cost unit is called
a) Cost allocation
b) cost apportionment
c) cost classification
d) overhead absorption
35. Cost accounting is a reporting system
 a) Internal
b) external
c) government
d) financial
36. A cost centre is a
a) Location for which cost is incurred
b) an organisation
c) a unit of cost
d) profit centre
37. Variable cost is also known as
a) Product cost
b) Period cost
c) Indirect cost
d) Semi fixed cost
38. Scientific purchasing begins with
a) Indenting for materials
b) ordering
c) Inspection
d) Selection of the supplier
39. Goods received note is prepared by
a) Purchase department
b) stores department
c) sales department
d) finance department
40. Average inventory is
a) Opening Inventory
b) Closing inventory
c) Opening inventory + closing inventory
d)

41.EOQ is the ____________ size of the order at which point ordering and carrying costs are
minimum
a) Optimum
b) Maximum
c) Minimum
d) Safety stock
42. Bin card is
a) An inspection note
b) a continuous record of stock stored
 c) a statement of delivery of materials
d) a statement of issue of material
43. Trade discount
a) Increases cost of material
b) decreases cost of material
c) does not affect cost of material
d) is added to the cost of material
44. FIFO method is
a) Logical
b) Illogical
c) Recognised by AS-4
d) recognised by AS-14
45. Casual workers are employed when
a) Workers are absent
b) machines breakdown
c) accidents take place
d) material is not available
46. Cost of accident is
a) Replacement cost
b) Preventive cost
c) Sunk cost
d) Fixed cost
47. Labour turnover is caused due to
a) High wages
b) Lack of proper HR Policies
c) Regular training
d) timely rewards and recognition
48. Machine setting time is
a) Normal Idle time
b) Abnormal Idle Time
c) Overtime
d) break time
49. Assigning code numbers to group of overheads is called as:
a) Classification
b) codification
c) analysis
d) reporting
50. Interest on Bank Deposits is
a) Credited to costing P&L A/c
b) Debited to costing P&L A/c
c) credited in Financial P&L A/c
d) Debited in Financial P&L A/c
ACHIEVERS COLLEGE OF COMMERCE & MANAGEMENT, KALYAN

Subject: Management Accounting Class: TYBCOM (old) (SEM V)

__________________________________________________________________
Multiple Choice Question

1. The term management accounting was first coined in

a) 1960
b) 1950
c) 1945
d) 1955
2. The use of management accounting is
a) Optional
b) Compulsory
c) Legally obligatory
d) Compulsory to some and optional to others

3. Management accounting assists the management

a) Only in control
b) Only in direction
c) Only in planning
d) In planning, direction and control

4. Who coined the concept of management accounting?

a) R.N Anthony
b) James H. Bliss
c) J. Batty
d) American Accounting Association

5. The assessment of financial statements by a shareholder is an example of

a) Vertical Analysis
b) Horizontal Analysis
c) Internal Analysis
d) External Analysis

6. The form of balance sheet is

a) Vertical
b) Horizontal
 c) Horizontal and vertical
d) Horizontal or vertical

7. The term current asset doesn’t cover

a) Car
b) Debtors
c) Stock
d) Prepaid expenses

8. P&L statement is also known as

a) Statement of operations
b) Statement of income
c) Statement of earnings
d) statement of expenses

9. Fixed assets are Rs 5,00,000, current asset are Rs 3,00,000, current liabilities are Rs
1,00,000. There is no investment Capital employed will be
a) Rs 8,00,000 b) Rs 7,00,000 c) Rs 9,00,000 d) Rs 6,00,000
10. The intangible assets which do not have value are
a) Tangible assets b) Intangible assets
c) Fictitious Assets d) Current assets
11. Profit on sale of furniture is shown in vertical income statement under
a) Operating Income b) Non operating income
c) Operating Expenditure d) Non operating expenditure
12. In common size income statement the basis is
a) Total cost b) Net Profit c) Gross Profit d) Sales
13. Liquid Ratio which is equal to the following is favorable
a) 2:1 b) 1:1 c) 1:3 d) 2:5

14. Management accounting information is generally prepared for

a) Managers b) Shareholders c) Creditors d) Government

15. Kumar Ltd. Reporter net sales Rs 9,00,000, Rs 9,90,000 and Rs 10,80,000 in the year
2013, 2014 and 2015. Of 2013 is the base year what is the trend % for 2015?
a) 120% b) 75% c) 80% d) 90%
16. Total current assets are Rs 30,000, Rs 54,000 and 66,000 in 2013, 2014 and 2015
respectively. If 2013 is the base year what is the % increase from 2013 to 2015?
a) 120% b) 125% c) 60% d) 50%
17. Cost of good sold for a company is Rs 30,00,000, Rs 24,00,000 and Rs 18,00,000 for
2015, 2014 and 2013 respectively. If 2013 is the base year the percentage increase in
cost of goods sold from 2013 to 2015 is
a) 66.67% b) 70% c) 50% d) 45%
18. Fixed interest bearing funds do not include one of the following:
a) Debenture b) Long term Investment
c) Preference capital d) Public Deposit
19. The ratio that indicates ability of the company to pay urgent obligations immediately is
a) Current Ratio b) Debt equity ratio
c) Liquidity ratio d) Proprietary ratio
20. Stock working capital ratio is proportion between
a) Closing stock and working capital b) Opening stock and wrong capital
c) sales and working capital d) sales and current assets

21. Current ratio is 2.5 working capital is Rs 60,000 current assets will be
a) Rs 1,00,000 b) Rs 1,40,000 c) 50,000 d) Rs 1,25,000
22. Gross profit Rs 1,00,000, total Sales Rs 5,25,000 sales return Rs 25,000. Gross profit
ratio will be
a) 25% b) 21% c) 20% d) 28%
23. Sales are Rs 33,984, sales return Rs 380, opening stock Rs 1,378, closing stock Rs
1814, Gross profit Rs 8,068. Stock turnover ratio will be
a) 10 times b) 12 times c) 15 times d) 16 times
24. Debt equity ratio is 1:2. Which of the following would increase:
a) Issue of debentures against purchase of fixed assets
b) Cash received from debtors
c) Payment to creditors
d) Purchase of goods on credit
25. Total debt Rs 9,00,000, capital employed Rs 12,00,000, current liabilities Rs 1,00,000.
Debt equity ratio will be
a) 2:1 b) 3:1 c) 1.5:1 d) 2.5:1
26. Working capital is Rs 1,20,000, total debt Rs 2,60,000, Long term debt Rs 2,00,000.
The current ratio is
a) 2:1 b) 1:1 c) 1.5:1 d) 3:1
27. Buying policies are judged by
a) Gross Profit Ratio b) Net profit ratio c) ROI d) P/E ratio
28. Higher current ratio and lower liquid ratio indicates higher incidence of
a) Inventory b) Cash c) Debtors d) Creditors
29. Standard interest coverage is
a) 4 times b) 6 times c) 7 times d) 15 times
30. Cash working capital is equal to
 a) Cash & balance b) cash & bank balance plus stock
c) liquid assets d) cash cost of working capital
31. The organization which allows longer period of credit to debtors requires
a) More working capital b) lesser working capital
c) no working capital d) moderate working capital
32. The following is not a current liability
a) Creditors b) bank loan
c) Unclaimed dividend d) Outstanding wages

33. For estimation of working capital debtors are valued at

a) Cost b) Market value
c) Cost or at M.V depending upon the policy of the organization d) Fair Value
34. The method which uses accrual accounting
a) Payback b) ARR c) NPV d) IRR
35. The method which does not consider investment profitability is
a) Payback b) ARR c) NPV d) IRR
36. The most reliable method for financing capital budget decisions
A) NPV b) ARR c) Payback d) Post audit method

37. M. Ltd is considering acquiring a plant. The purchase price is Rs 12,36,100. The
company believes that the net cash inflow of Rs 3,09,025 will be generated every year.
The plant will have to be replaced in eight years. The payback period is
a) 4 years b) 3 years c) 6 years d) 2 years

38. NPV of project A, B and C is Rs 25,000, Rs 38,000 and Rs 32,000 respectively. The
most profitable project is
A) A b) D c) C d) B
39. PV of cash inflow of a project is Rs 2,38,000 and investment is Rs 2,00,000. The PI is
A) 1.19 b) 1.20 c) 1.21 d) 1.40
40. NPV represents immediate increase in
A) Firms wealth b) firms profit c) efficiency d) solvency
41. Current assets Rs 1,80,000 Current Liabilities Rs 90,000. The amount of working capital
is
A) Rs 90,000 b) Rs 1,80,000 c) Rs 2,70,000 d) 2,00,000
42. Comparison of performance of a company over a period of time on the basis of base
year is known as
a) Cost benefit analysis b) Comparative Analysis
c) Trend analysis d) Common size analysis
43. Solvency ratio shows
a) Short term solvency b) Long term solvency c) Liquidity d) profitability
 44. Capital work in progress is disclosed under
a) Fixed Asset b) Current Asset c) Capital d) Intangible asset
45. General reserve is created out of
a) Profit b) Income c) Expenditure d) Dividend received
46. Income statement is a
a) Statement of working results b) Statement of Sources of Funds
c) Statement of Cash Flow d) Fund from operation
47. Authorised capital is
a) Minimum capital the company can raise
b) Maximum capital that can be raised as per the M/A
c) Optimum capital that can be raised
d) Needed capital
48. Natural resources like mines oil wells are
a) wasting assets b) ficitious assets
c) current assets d) intangible assets
49. Z ltd furnishes the following information:
Fixed assets - 10,00,000, Current assets- 5,00,000, Current Liabilities – 2,00,000,
capital employed is
a) Rs 13,00,000 b) Rs 15,00,000
b) c) Rs 17,00,000 d) Rs 12,00,000
50. High geared company exposes to
a) Business risk b) Financial Risk c) Inflation risk d) Interest risk