rocking ece: ONLINE EXAMINATIONS [Mid 2

An undertaking having the characteristics of Separate Legal Existence, Common Seal and Perpetual succession is known as [01D01]
1. Sole Proprietory
2. Partnership
3. Co-operative Society
4. Joint Stock Company
This form of organization can maintain personal contact with customers. [01D02]
1. Sole Proprietory
2. Public Limited Company
3. Co-operative Society
4. Joint Stock Company
An association of persons usually of limited means who have voluntarily joined together to achieve a common economic end is known as. [01M01]
1. Sole Proprietory
2. Partnership
3. Co-operative Society
4. Joint Stock Company
The farmers of a small village have joined together and formed an association for the purpose of procuring their agricultural requirements like fertilizers etc., This association is known as [01M02]
1. Sole Proprietory
2. Partnership
3. Co-operative Society
4. Joint Stock Company
Private Limited is added at the end of a [01M03]
1. Government Company
2. Public Limited Company
3. Private Limited Company
4. Departmental Undertaking
Which of the following firm is easy to start and easy to close? [01S01]
1. Public Limited Company
2. Public Enterprise
3. Sole Proprietory Concern
4. Departmental Undertaking
The Basic difference between a Sole Trader, and Partnership is [01S02]
1. Personal Contact with the customer
2. Number of Members
3. Limited Growth
4. Unlimited Liability
Which of the following in the feature of Sole Trader? [01S03]
1. Limited Liability
2. Unlimited Liability
3. Liability, limited by guarantee
4. Liability limited by assurance
_ _ _ _ _ _ _ _ _ _ form of organization requires Memorandum and Articles of Association for Incorporation. [01S04]
1. Sole Proprietory
2. Partnership
3. Co-operative Society
4. Joint Stock Company
The relationship between two or more persons who agree to share the profits of the business carried on by all or any one of them acting for all is known as: [01S05]
1. Sole Proprietory
2. Partnership
3. Co-operative Society
4. Joint Stock Company
Which of the following is not a feature of Sole Proprietory concern. [02D01]
1. It can introduce capital on its own
2. It enjoys/suffers profits and losses of the firm
3. He has unlimited liability
4. Two or more persons can form it
Sole Proprietor Concern does not have the following advantage. [02D02]
1. Prompt decision-making
2. Secrets can be very well maintained
3. Limited Liability
4. Easy to form and Easy to close
What are the advantages of Sole Trader concern? [02M01]
1. Unlimited Company
2. Limited amount of Capital
3. Lack of specialization
4. Prompt decisions can be taken
What are the disadvantages of Sole Trader concern? [02M02]
1. It is easy to start and easy to close
2. Prompt decisions can be taken
3. Secrets can be maintained
4. Unlimited liability
Which of the following is not a feature of Sole Proprietorship [02M03]
1. Easy to form and Easy to Close
2. Transferability of shares
3. Maintenance of Secrets
4. Flexibility
Which of the following is a feature of Sole Proprietorship concern. [02S01]
1. Many people form it
2. It cannot maintain Secrets
3. It cannot maintain direct contact with customers
4. It has unlimited liability
How many people can start a Sole Proprietory concern [02S02]
1. 4
2. 3
3. 2
4. 1
Secrets can be easily maintained in this form of organization? [02S03]
1. Joint Stock Company
2. Proprietory Concern
3. Co-operative Society
4. Departmental Undertaking
In which form of organization there is no Limited Liability [02S04]
1. Joint Stock Company
2. Government Company
3. Sole Trader
4. Departmental Undertaking
Identify a sole trader concern from the following: [02S05]
1. Reliance Industries Limited
2. Hindustan Lever Limited
3. Champaklal and Sons
4. Pan Shop/Kirana Shop
What happens to the partnership form of organization when one of its partners dies? [03D01]
1. The Partnership continues with the remaining partners
2. The partnership continues with the legal heirs of the deceased partners joining the partnership
3. The Partnership dissolves
4. The partnership continues with wife of deceased partner
What happens to the partnership form of organization when the purpose of the partnership is completed? [03D02]
1. The Partnership continues
2. The partnership continues with half the partners
3. The Partnership dissolves
4. The partnership continues after taking up another activity
What is the difference between Sole Proprietory Concern and Partnership? [03M01]
1. Unlimited Liability
2. Number of Persons forming the firm
3. Easy to form
4. Flexibility
Who is a Minor Partner. [03M02]
1. A partner who has a minor share in the capital of firm
2. A partner who has no major share in the capital of the firm
3. A partner who has attained the age of majority
4. A partner who has not completed 18 years of age
There is a partnership with four partners. One partner of the firm borrows Rs.1,00,000/- for the firm. What is the position of the remaining partners with regard to this transaction? [03M03]
1. The partner who borrowed the money alone has to repay it
2. The remaining partners are in no way responsible for this borrowing
3. Only two partners are liable for the borrowing
4. All the partners are liable for the borrowing
How many people can start a Partnership concern for doing Banking business [03S01]
1. 10
2. 20
3. 15
4. 12
How many people can start a Partnership concern for doing Non-banking business [03S02]
1. 21
2. 20
3. 25
4. 30
One of the features of the Partnership concern is [03S03]
1. It can be formed by One person
2. It can be formed without an agreement
3. Even one person can bind all the partners
4. It has Limited Liability
Under which of the following circumstances the Partnership company does not dissolve: [03S04]
1. On death of a partner
2. On retirement of a partner
3. One of the partners has gone on business tour
4. On the completion of task for which partnership was formed
A partner who contributes to the capital of the firm but does not take active part in the business is known as [03S05]
1. Active Partner
2. Sleeping Partner
3. Nominal Partner
4. Minor Partner
A company issued share capital of Rs.10/- per share. It has collected a sum of Rs.5/- on subscription. What is the maximum amount of liability the member will have on the company going into liquidation? [04D01]
1. Rs.10/-.
2. Unlimited Liability
3. Rs.15/-
4. Rs.5/-
A company, where not less than 51 % of the share capital is held by Central Government, it is known as [04D02]
1. Public Company
2. Private Company
3. Foreign Company
4. Government Company
The contribution of the member does not exceed the face value of the share, in case the company goes into liquidation. This concept is known as [04M01]
1. Artificial Person
2. Separate Legal Existence
3. Limited Liability
4. Perpetual Succession
A notice, circular, advertisement or any other document inviting offers from the public for the subscription or purchase of any shares in or debentures of the body corporate is known as [04M02]
1. Memorandum of Association
2. Articles of Association
3. Agreement
4. Prospectus
Members may come and members may go but the company continues forever. This concept is known as [04M03]
1. Artificial Person
2. Separate Legal Existence
3. Limited Liability
4. Perpetual Succession
What is the maximum number of members for a Private Limited Company [04S01]
1. 10
2. 25
3. 50
4. 40
What is the minimum number of members for forming a Public Limited Company? [04S02]
1. 2
2. 5
3. 7
4. 4
What is the maximum number of members for a Public Limited Company. [04S03]
1. 100
2. 250
3. Unlimited
4. 400
Which of the following is a feature of Private Limited Company. [04S04]
1. Restricts the right of transfer of its shares
2. Allows transfer of its shares
3. It must have a minimum capital of Rs.5 lakhs
4. It must have a minimum 7 members
The property of the company does not become the property of the members. This concept is known as [04S05]
1. Artificial Person
2. Separate Legal Existence
3. Limited Liability
4. Perpetual Succession
What is the main idea or concept of disinvestments? [05D01]
1. To reduce the Government holding to less than 75 %
2. To reduce the Government holding to less than 50 %
3. To reduce the Government holding to less than 25 %
4. To reduce the Government holding to less than 10 %
Which company is not in the list of PSUs to be disinvested? [05D02]
1. Air India
2. Oil and Natural Gas Commission
3. Hindustan Lever Limited
4. Steel Authority of India Limited
Which of the following is a Statutory Corporation. [05M01]
1. Industrial Development Bank of India
2. Central Bank of India
3. Mahendra & Mahendra
4. Zee Telefilms Ltd
What is the advantage of a Government Company? [05M02]
1. Continued political Interference
2. Evades Constitutional Responsibility
3. Poor sense of commitment
4. Separate Legal Entity
What is the disadvantage of a Government Company? [05M03]
1. Formation is easy
2. Separate Legal entity
3. Quick decisions
4. Continued government interference
Departmental Undertaking is an undertaking whose affairs are carried on under [05S01]
1. Private Limited Company
2. Public Limited Company
3. Government Company
4. Government Department
Which of the following is a Departmental Undertaking [05S02]
1. ONGC
2. State Bank of India
3. Railway
4. Reliance Industries Limited
A government company is defined as a Company in which, not less than _ _ _ _ _ _ _ percent share capital is held by the Central or State Government. [05S03]
1. 26%
2. 31%
3. 45%
4. 51%
Which of the following is a Government Company. [05S04]
1. Export Credit Guarantee Corporation of India
2. Larsen & Toubro
3. Dr. Reddy Labs
4. Maruthi Udyog Limited
A body corporate created by an Act of Parliament or Legislature and notified by the name in the Official Gazette is known as [05S05]
1. Public Limited Company
2. Private Limited Company
3. Foreign Company
4. Statutory Corporation
Stock is categorized as [06D01]
1. Working Capital
2. Intangible Assets
3. Fixed Capital
4. Current Liabilities
Bank Loan is categorized as [06D02]
1. Working Capital
2. Intangible Assets
3. Current Liabilities
4. Current Assets
XYZ Ltd Bank has subscribed to the Share Capital of ABC Company Ltd. This method of raising the funds is known as [06M01]
1. Bank Loan
2. Equity Shares
3. Debentures
4. Deposits
The amount borrowed from a Bank is known as [06M02]
1. Bank Loan
2. Equity Shares
3. Debentures
4. Deposits
Land, Building, Plant and Machinery are categorized as [06M03]
1. Working Capital
2. Intangible Assets
3. Fixed Capital
4. Current Assets
Owners Capital is known as [06S01]
1. Deposits
2. Equity Capital
3. Debentures
4. Bank Loan
Where the trader agrees to sell its accounts receivable or debtors at discount to the specialized dealer is called [06S02]
1. Deposits
2. Equity Capital
3. Debt factoring
4. Bank Loan
Short-term Credit facility extended by the Creditor to the Debtor is known as [06S03]
1. Deposits
2. Equity Capital
3. Trade Credit
4. Bank Loan
Where the debentures are repaid on a specified date are known as [06S04]
1. Convertible Debentures
2. Non-Convertible Debentures
3. Secured Debentures
4. Redeemable Debentures
Where the unpaid dividend in arrears cannot be claimed in future by the Preference Shareholders is known as [06S05]
1. Participating Preference Shares
2. Redeemable Preference Shares
3. Cumulative Preference Shares
4. Non-cumulative Preference Shares
If the Outstanding Wages increase, what will be the effect on Working Capital? [07D01]
1. The Gross Working Capital Decreases
2. The Gross Working Capital remains unchanged
3. The Net Working Capital Decreases
4. The Net Working Capital Increases
If the Cash on Hand increases from Rs.10,000/- to Rs.20,000/-, what will be the effect on Gross Working Capital? [07D02]
1. The Gross Working Capital Decreases
2. The Gross Working Capital remains unchanged
3. The Net Working Capital Decreases
4. The Gross Working Capital Increases
If the Raw Material requirement increases from 3 months to 4 months, what is the effect on the Working Capital? [07M01]
1. The Net Working Capital Remains Unchanged
2. The Gross Working Capital Remains Unchanged
3. The Net Working Capital Increases
4. The Net Working Capital Decreases
If the Operating Cycle increases, what will be the effect on Working Capital? [07M02]
1. The Gross Working Capital Decreases
2. The Gross Working Capital remains unchanged
3. The Net Working Capital Decreases
4. The Net Working Capital Increases
If the Current Liabilities increase, what will be the effect on Working Capital? [07M03]
1. The Gross Working Capital Decreases
2. The Gross Working Capital remains unchanged
3. The Net Working Capital Decreases
4. The Net Working Capital Increases
The cost of Raw material per Unit is Rs.10/- per Unit. If production per year is 12,000/- units and the raw material requirement is for one month. What is the cost of raw material r [07S01]
1. Rs.1,20,000/-
2. Rs.12,000/-
3. Rs.10,000/-
4. Rs.1,00,000/-
Raw Material cost is Rs.10,000. Wages is Rs.12,000/-. Overheads is Rs.8,000/-. The Debtors and cash are Rs.10,000 and Rs.15,000/- respectively. The Creditors are Rs.15,000/-. What is the net working capital? [07S02]
1. Rs.30,000/-
2. Rs.70,000/-
3. Rs.40,000/-
4. Rs.55,000/-
Unit cost of Raw Material is Rs.10/- Wages is Rs.12/- Overheads is Rs.8/-. The Total Number of Units produced is 1,000 per month. The requirement of Raw Material, Wages and Overheads is one month. The Debtors and cash are Rs.10,000 and Rs.15,000/- respectively. The Creditors are Rs.15,000/-. What is the net working capital? [07S03]
1. Rs.30,000/-
2. Rs.70,000/-
3. Rs.40,000/-
4. Rs.55,000/-
Raw Material cost is Rs.10/- Wages is Rs.12/-. Overheads are Rs.8/-. The Debtors and cash are Rs.10,000/- and Rs.15,000/- respectively. The requirement of Raw Material, Wages and Overheads is one month. The Total Production is 500 Units per month. What is the Gross working capital? [07S04]
1. Rs.30,000/-
2. Rs.70,000/-
3. Rs.40,000/-
4. Rs.55,000/-
The Current Assets of the company are Rs.5,00,000/- and the Current Liabilities of the company Rs.1,00,000/-. What is the Net Working Capital? [07S05]
1. Rs.5,00,000/-
2. Rs.4,00,000/-
3. Rs.6,00,000/-
4. Rs.1,00,000/-
What is the decision criterion for selecting a Project in Profitability Index? [08D01]
1. The Profitability Index should be less between two projects
2. The Profitability Index should be more between two projects
3. The Profitability Index has no relationship with the selection of a project
4. The Profitability Index should be same between two projects
In which of the following methods the Discounted Present Value alone is calculated [08D02]
1. Pay back Period
2. ARR
3. Net Present Value
4. Profitability Index
What is the decision criterion for selecting a Project in ARR? [08M01]
1. The ARR should be less between two projects
2. The ARR should be more between two projects
3. The ARR has no relationship with the selection of a project
4. The ARR should be same between two projects
What is the decision criterion for selecting a Project in Net Present Value? [08M02]
1. The Net Present Value should be less between two projects
2. The Net Present Value should be more between two projects
3. The Net Present Value has no relationship with the selection of a project
4. The Net Present Value should be same between two projects
What is the decision criterion for selecting a Project in IRR? [08M03]
1. The IRR should be less between two projects
2. The IRR should be more between two projects
3. The IRR has no relationship with the selection of a project
4. The IRR should be same between two projects
What is the Traditional Method of Capital Budgeting? [08S01]
1. Net Present Value Method
2. Internal Rate of Return
3. Profitability Index
4. Average Rate of Return
What is Future Value of Money? [08S02]
1. Value of Rs.100/- receivable in Future
2. Value of Rs.100/- receivable in the past
3. Value of Rs.100/- with interest receivable in Future
4. Value of Rs.100/- at discount receivable in Future
What is the formula for calculating the Future Value of Money? [08S03]
1. P x (1+r/100)
2. R x (1+P/100)
3. 100 x (1+100/P)
4. P x (1+r)
What is the principle behind the discounting of future flows of money? [08S04]
1. Money Value increases in future
2. Money Value decreases in future
3. Money Value remains same in future
4. The Money Value has no relationship with discounting
What is the decision criterion for selecting a Project in Pay Back Period? [08S05]
1. The Pay back Period should be less between two projects
2. The Pay back Period should be more between two projects
3. The Pay Back Period has no relationship with the selection of a project
4. The Pay back Period should be same between two projects
A firm is considering a project with an initial outlay of Rs.50,000/- and the life of the plant is 5 years. If the scrap value of the plant is Rs.10,000. What is the value of average investment? [09D01]
1. Rs.10000/-
2. Rs.12000/-
3. Rs. 2000/-
4. Rs. 8000/-
A firm is considering a project with an initial outlay of Rs.50,000/- and the life of the plant is 5 years. If the scrap value of the plant is Rs.10,000. What is the amount of depreciation? [09D02]
1. Rs.10000/-
2. Rs.12000/-
3. Rs. 2000/-
4. Rs. 8000/-
When the Annual Inflows are not uniform the Pay back Period is Calculated as under [09G01]
1. By dividing the Initial Investment with the number of years
2. By dividing the Initial Investment with the Annual Cash Inflows of first year
3. By dividing the Initial Investment with the Annual Cash Inflows of first year
4. By doing Cumulative Total of Annual Cash Inflows
The Initial Investment in a project is Rs.10,000/-. The annual Cash Inflows for first, second, third, fourth and fifth year are Rs.1,500/-, Rs.2,500/-, Rs.3,000/-, Rs.3,000/- and Rs.2,000/-. The Pay Back Period is [09M01]
1. 4 years
2. 3 years
3. 2 years
4. 1 year
The Initial Investment in a project is Rs.10,000/-. The annual Cash Inflows for the first, second, third, fourth and fifth year are Rs.2,500/-, Rs.2,500/-, Rs.3,000/-, Rs.4,000/- and Rs.2,000/-. The Pay Back Period is [09M02]
1. 4 years
2. 3.5 years
3. 2.5 years
4. 1 year
A firm is considering a project with an initial outlay of Rs.20,000/- and project life of 4 years. The annual cash inflows are Rs.12,000/- for a period of 4 years. What is the ARR. [09M03]
1. 120 %
2. 100 %
3. 75 %
4. 50 %
Pay back Period is Calculated as under [09S01]
1. Initial Investment/Annual Inflows
2. Annual Inflows/Initial Investment
3. Annual Inflows/No of years
4. No of years/Initial Investment
The formula for calculating the Average Rate of Return is [09S02]
1. Average annual profits after tax / Average Investment
2. Average Investment / Average Income
3. Average annual profits before tax / Average Investment
4. Annual profits after tax / Original Investment.
The Initial Investment in a project is Rs.10,000/-. The annual Cash Inflows are Rs.2,500/- per year. The Pay Back Period is [09S03]
1. 4 years
2. 3 years
3. 2 years
4. 1 year
The Initial Investment in a project A is Rs.10,000/- and project B is Rs.20,000. The annual Cash Inflows are Rs.2,500/- and Rs.4,000/- per year. The Pay Back Period for projects are [09S04]
1. 4 years and 3 years
2. 4 years and 5 years
3. 2 years and 4 years
4. 4 years and 4 years
The Initial Investment in a project is Rs.10,000/-. The Cash Inflows for the first, second, third and fourth year are Rs.2,500/-, Rs.3,000/-, Rs.3,500/- and Rs.4,000/- respectively . Find the Profitability Index at a Discount rate of 10 %. [10D01]
1. 0.01
2. 1.30
3. 0.11
4. 1.00
If the Discount rate increases from 10 % to 15 % what will be effect on the Profitability Index? [10D02]
1. Profitability Index will rise
2. Profitability Index will fall
3. Profitability Index will remain unchanged
4. Profitability Index and Discount Rate have no relationship
A firm is considering a project with an initial outlay of Rs.35,000/- and project life of 4 years. The annual cash inflows are Rs.12,000/- for a period of 4 years. What is the IRR? [10M01]
1. 10 %
2. 11.02 %
3. 13.95 %
4. 15 %
The formula for calculating the Profitability Index is [10M02]
1. Present Value of Cash Inflows / Cash Outflows
2. Net Present Value of Cash Inflows / Cash Outflows
3. Cash Outflows / Present Value of Cash Inflows
4. Cash Outflows / Net Present Value of Cash Inflows
The Initial Investment in a project is Rs.10,000/-. The Cash Inflows are Rs.2,500/- per year for 4 years. Find the Profitability Index at a Discount rate of 10 %. [10M03]
1. 1.00
2. 1.79
3. 0.79
4. 0.21
Net Present Value is [10S01]
If the Interest Rate increases what will be the effect on Net Present Value? [10S02]
1. There will be no change in NPV
2. The NPV will decrease
3. The NPV will increase
4. Interest Rate and NPV have no relationship
If the Interest Rate decreases what will be the effect on Net Present Value? [10S03]
1. There will be no change in NPV
2. The NPV will decrease
3. The NPV will increase
4. Interest Rate and NPV have no relationship
A firm is considering a project with an initial outlay of Rs.20,000/- and project life of 4 years. The annual cash inflows are Rs.12,000/- for a period of 4 years. What is the NPV at Discount Rate of 10 %? [10S04]
1. Rs.37,038
2. Rs.35,000
3. Rs.38,040
4. Rs.18,040
The formula for calculating the Internal Rate of Return is [10S05]
If the Company purchased shares of another Company, what is this kind of asset known as? [11D01]
1. Equity Capital
2. Current Liability
3. Fictitious Asset
4. Current Asset
A company purchased Land for Rs.10,000/- the market value of the same is Rs.20,000/-. If the accounts are written for Rs.10,000/-, this concept is known as [11D02]
1. Market Value
2. Cash Value
3. Book Value
4. Realisable Value
Goodwill is a [11M01]
1. Tangible Asset
2. Intangible Asset
3. Fictitious Asset
4. Current Asset
Computer is a [11M02]
1. Tangible Asset
2. Intangible Asset
3. Fictitious Asset
4. Current Asset
If the Company has made deposits with a Bank. What is this asset known as? [11M03]
1. Fixed Asset
2. Current Liability
3. Fictitious Asset
4. Current Asset
Every business unit is assumed to continue forever and it has a perpetual life. This concept of accounting is known as [11S01]
1. Business Entity Concept
2. Going Concern Concept
3. Money Measurement Concept
4. Cost Concept.
The assets are recorded at the cost at which they are acquired. This concept of accounting is known as [11S02]
1. Business Entity Concept
2. Going Concern Concept
3. Money Measurement Concept
4. Cost Concept.
When the accounts are written for the period Diwali to Diwali the concept is known as [11S03]
1. Business Entity Concept
2. Going Concern Concept
3. Money Measurement Concept
4. Accounting Period Concept
All transactions, which can be measured in terms of money, are recorded in the accounts. This concept of accounting is known as [11S04]
1. Business Entity Concept
2. Going Concern Concept
3. Money Measurement Concept
4. Cost Concept.
When the accounts are written for the period 1.1.2005 to 31.12.2005 the concept is known as [11S05]
1. Business Entity Concept
2. Going Concern Concept
3. Money Measurement Concept
4. Accounting Period Concept
Which account is Credited when the Purchased Goods are Returned? [12D01]
1. Purchases A/c
2. Purchase Return A/c
3. Cash Account
4. Goods Account
Salary Account, Rent Account, Commission Account, Discount Account are known as [12D02]
1. Real Account
2. Personal Account
3. Nominal Account
4. Fixed Account
What is a Bad Debt Account? [12M01]
1. Real Account
2. Personal Account
3. Nominal Account
4. Fixed Account
Cash Account, Bank Account, Stock Account are known as [12M02]
1. Real Account
2. Personal Account
3. Nominal Account
4. Fixed Account
Which of the following is known as Nominal Account [12M03]
1. Mohan Account
2. Bank Account
3. Commission Account
4. Cash Account
Journal is a [12S01]
1. Book of classification of entries
2. Book of original entries
3. Book of summarizing entries
4. Book of Trading Account.
The Principle of double entry in the case of Personal Account is [12S02]
1. Debit - What Comes in Credit What Goes out
2. Debit - Receiver Credit - Giver
3. Debit - Expenses Credit - Income
4. Debit - Cash Credit - Sales
The Principle of double entry in the case of Real Account is [12S03]
1. Debit - What Comes in Credit What Goes out
2. Debit - Receiver Credit - Giver
3. Debit - Expenses Credit - Income
4. Debit - Cash Credit - Sales
The Principle of double entry in the case of Nominal Account is [12S04]
1. Debit - Receiver Credit - Giver
2. Debit - Expenses Credit - Income
3. Debit - What Comes in Credit What Goes out
4. Debit - Cash Credit - Sales
The amount of Debit must _ _ _ _ _ _ _ _ _ _ the amount of Credit. [12S05]
1. Be greater than
2. Be equal to
3. Be Less than
4. Be unequal to
Cash Rs.10,000/-, Capital Rs.1,00,000/-, Fixed Assets Rs.40,000/-, Sundry Debtors Rs.50,000/-. What is the total of trial Balance? [13D01]
1. Rs.2,00,000/-
2. Rs.1,00,000/-
3. Rs.50,000/-
4. Rs.10,000/-
The balance shown in the Rent Received is shown in the Trial Balance as [13D02]
1. Debit side of trial balance
2. Credit side of Trial Balance
3. Deducted from the Rent paid
4. Added to the Rent paid
The Depreciation is 10 % of the Plant & Machinery. If the Plant & Machinery Value is 1,00,000 and the useful life of the asset is 10 years then the Depreciation is [13M01]
1. 12000
2. 10000
3. 8000
4. 6000
Purchased Goods for Cash from Mohan for Rs.50,000/-. How many number of Ledger Accounts are there? [13M02]
1. 1
2. 2
3. 3
4. 4
Purchased Goods for Cash from Mohan for Rs.50,000/-. What Ledger Accounts are opened? [13M03]
1. Goods A/c and Cash Account
2. Goods A/c and Mohan Account
3. Mohan A/c and Cash Account
4. Mohan A/c and Bank Account
Identify the accounts in the following Transaction, which is Debited and Credited. Paid Rs.14,500/- Cash to Mohan in full settlement of his liability for Rs.15,000/- [13S01]
1. Dr - Cash A/c Cr Mohan A/c
2. Dr Cash A/c Dr Discount A/c Cr - Mohan A/c
3. Dr Mohan A/c Cr Cash A/c Cr Discount A/c
4. Dr Cash A/c Cr Mohan A/c Cr Discount A/c
Identify the two accounts in the following Transaction, which is Debited and Credited. Purchased Goods from Mohan on Cash for Rs.10,000/- [13S02]
1. Dr - Goods A/c Cr Mohan A/c
2. Dr Purchases A/c Cr - Mohan A/c
3. Dr Purchases A/c Cr Cash A/c
4. Dr Mohan A/c Cr Cash A/c
Identify the accounts in the following Transaction, which is Debited and Credited. Received Rs.14,500/- Cash from Mohan in full settlement of his debt for Rs.15,000/- [13S03]
1. Dr - Cash A/c Cr Mohan A/c
2. Dr Cash A/c Dr Discount A/c Cr - Mohan A/c
3. Dr Mohan A/c Cr Cash A/c
4. Dr Cash A/c Cr Mohan A/c Cr Discount A/c
When Machinery is purchased from Mohan through a cheque, what are the accounts Debited and Credited. [13S04]
1. Debit - Machinery Credit - Cash
2. Debit - Machinery Credit - Mohan
3. Debit - Cheque Credit - Machinery
4. Debit - Machinery Credit - Bank
When Commission is received by Cheque what are the accounts Debited and Credited? [13S05]
1. Debit - Commission Credit - Bank
2. Debit - Bank Credit - Commission
3. Debit - Cheque Credit - Commission
4. Debit - Commission Credit - Cheque
What is a Manufacturing Account? [14D01]
1. It is a book of Journal
2. It is a Trial Balance
3. Where the net profit of a concern is ascertained
4. Where the gross profit of a concern is ascertained
What is a Profit and Loss Account? [14D02]
1. It is a book of Journal
2. It is a Trial Balance
3. Where the net profit of a concern is ascertained
4. Where the gross profit of a concern is ascertained
Sales Returns are [14M01]
1. Added to the Closing Stock
2. Added to the Sales
3. Deducted from the Purchases
4. Deducted from the Sales
The Opening Stock is Rs.10,000/-, The Purchases Rs.5,000/-, The Purchase Returns Rs.1,000/-, Depreciation Rs.2,000/-, Wages Rs.2,000/-, Carriage Rs.2,000/-. The Sales and Sales Return are Rs.25,000/- and Rs.2,000/- respectively. What is the Gross Profit? [14M02]
1. 20,000/-
2. 25,000/-
3. 3,000/-
4. 5,000/-
What is a Manufacturing Account? [14M03]
1. It is a book of journal
2. Where the Net profits of a Manufacturing concern are recorded
3. Where the expenditure and income of a Manufacturing concern are recorded
4. Where the assets and liabilities are recorded.
What is a Trading Account? [14S01]
1. Where Net Profit is ascertained
2. Where the expenditure and income of Trading concern are recorded
3. Where the Net Profit of a Trading concern are recorded
4. Where the assets and liabilities are recorded
The debit balance in the Purchases account is posted in [14S02]
1. Trial Balance
2. Trading Account
3. Profit and Loss Account
4. Balance Sheet
The Depreciation on Machinery is posted in [14S03]
1. Trial Balance
2. Trading Account
3. Profit and Loss Account
4. Balance Sheet
The Credit balance in the Sales account is posted in [14S04]
1. Cash Account
2. Trading Account
3. Profit and Loss Account
4. Balance Sheet
Purchase Returns are [14S05]
1. Added to the Opening Stock
2. Added to the Purchases
3. Deducted from the Purchases
4. Deducted from the Sales
Bank Loan repayable after a period of 2 Years is [15D01]
1. Fixed Asset
2. Long Term Liability
3. Current Liabilities
4. Reserve and Surplus
Bank Loan repayable within a period of 12 months is [15D02]
1. Fixed Asset
2. Current Assets
3. Current Liability
4. Reserve and Surplus
Land and Building is [15M01]
1. Tangible Asset
2. Intangible Asset
3. Fictitious Asset
4. Current Asset
Car is shown in the Balance Sheet as [15M02]
1. Intangible Asset
2. Fixed Asset
3. Liability
4. Current Asset
Plant and Machinery is shown in the Balance Sheet as [15M03]
1. Miscellaneous Asset
2. Fixed Asset
3. Liability
4. Current Asset
Balance Sheet is a [15S01]
1. Statement of Assets and Liabilities
2. Statement of Expenditure and Income
3. Statement of Purchases
4. Statement of Sales
In a Balance Sheet [15S02]
1. Total of Assets must equal Liabilities
2. Total of Assets must be unequal Liabilities
3. Total of Assets must be greater than Liabilities
4. Total of Assets must be less than Liabilities
Sundry Debtor is a [15S03]
1. Tangible Asset
2. Fixed Asset
3. Fictitious Asset
4. Current Asset
Stock is a [15S04]
1. Tangible Asset
2. Intangible Asset
3. Fictitious Asset
4. Fixed Asset
Goodwill is a [15S05]
1. Tangible Asset
2. Intangible Asset
3. Fictitious Asset
4. Current Asset
Adjustment entry of unpaid wages amounting to Rs.5,000/- will be treated in the Final Accounts as : [16D01]
1. Credited to P &L A/c and Shown on the Asset side of the Balance Sheet
2. Debited to P &L A/c and reflected in Liabilities side of Balance Sheet
3. Debited to Trading A/c and reflected in Liabilities side of Balance Sheet
4. Debited to Trading A/c and added to Sundry Creditors in Balance Sheet
Adjustment entry of Closing Stock amounting to Rs.15,000/- will be treated in the Final Accounts as : [16D02]
1. Credited to P &L A/c and shown on the Asset side of the Balance Sheet
2. Debited to P &L A/c and shown on the Liabilities side of the Balance Sheet
3. Credited to Trading A/c and shown on the Asset side of the Balance Sheet
4. Debited to Trading A/c and shown on the Liabilities side of the Balance Sheet
Adjustment entry of Bad debts amounting to Rs.5,000/- will be treated in the Final Accounts as : [16M01]
1. Credited to P &L A/c and Shown on the Asset side of the Balance Sheet
2. Debited to P &L A/c and Deducted from the Sundry Debtors in Balance Sheet
3. Debited to Trading A/c and deducted from Sundry Debtors in Balance Sheet
4. Debited to Trading A/c and added to Sundry Creditors in Balance Sheet
Adjustment entry of Depreciation amounting to Rs.5,000/- on Plant and Machinery will be treated in the Final Accounts as : [16M02]
1. Credited to P &L A/c and Shown on the Asset side of the Balance Sheet
2. Debited to P &L A/c and deducted from the Plant and Machinery in Balance Sheet
3. Debited to Trading A/c and deducted from Plant and Machinery in Balance Sheet
4. Debited to Trading A/c and added to Capital in Balance Sheet
XYZ Ltd., Co., has received a sum of Rs.50,000/- from a Relative of Director as a deposit for a period of 6 months. What should be the classification in the Balance Sheet. [16S01]
1. Fixed Asset
2. Unsecured Creditors
3. Current Liability
4. Reserve and Surplus
ABC Co., Ltd., has borrowed a sum of Rs.1,00,000/- from the Bank against the mortgage of its property. What should be the classification in the Balance Sheet? [16S02]
1. Asset
2. Fixed Asset
3. Liability
4. Current Asset
Net profit of the Profit and Loss Account is [16S03]
1. Added to the Capital
2. Deducted from the Capital
3. Added to the Drawings
4. Added to the Sundry Creditors
In the adjustment entries for final accounts, the Closing Stock is treated as under [16S04]
1. Debit - Trading A/c. Credit - P &L A/c
2. Debit -. P &L A/c Credit - Trading A/c
3. Assets -. Balance Sheet Credit - Trading A/c
4. Liabilities -. Balance Sheet Credit - Trading A/c
Bills Receivable is a [16S05]
1. Long Term Debt
2. Current Liabilities
3. Fictitious Asset
4. Current Asset
The Current Ratio for the Years 2003 and 2004 are 2:1 and 3:1 respectively. What does the Ratio indicate? [17D01]
1. The Current Liabilities have gone up
2. The Current Assets have gone down
3. The Current Asets have remained unchanged
4. The Current Liabilities have gone down
The Current Ratio for the Years 2003 and 2004 are 3:1 and 2:1 respectively. What does the Ratio indicate? [17D02]
1. The Current Liabilities have gone up
2. The Current Assets have gone down
3. The Current Assets have remained unchanged
4. The Current Assets have gone up
Ratio measuring the liquidity of a company is [17M01]
1. Debt-equity Ratio
2. Current Ratio
3. Earning Per Share
4. Interest Coverage Ratio
What is the formula for Quick Ratio? [17M02]
1. Current Assets - Current Liabilities
2. Current Assets / Current Liabilities
3. Quick Assets / Current Liabilities
4. Current Liabilities / Quick Assets
How to calculate Quick Assets? [17M03]
1. Current Assets (Opening Stock + Closing Stock)
2. Current Assets - (Closing Stock + Prepaid Expenses)
3. Current Assets Current Liabilities
4. Current Assets Prepaid Expenses
Current Ratio is [17S01]
1. Current Assets - Current Liabilities
2. Current Assets + Current Liabilities
3. CL/CA
4. Current Assets / Current Liabilities.
What should be the reasonable level of Current Ratio? [17S02]
1. 1:1
2. 1:2
3. 3:1
4. 2:1
Cash Rs.10,000/-, Bank Balance Rs.20,000/-, Stock Rs.30,000/-, Marketable Securities Rs.40,000/-, Sundry Debtors Rs.50,000/-, and Sundry Creditors are Rs.50,000/-. What is the Current Ratio? [17S03]
1. 1:1
2. 1:2
3. 3:1
4. 2:1
If the Current Assets increases what will be effect on Current Ratio? [17S04]
1. Current Ratio increases
2. Current Ratio Decreases
3. Current Ratio Remains Unchanged
4. There will not be any impact on Current Ratio
If the Current Liabilities increases what will be effect on Current Ratio? [17S05]
1. Current Ratio increases
2. Current Ratio Decreases
3. Current Ratio Remains Unchanged
4. There will not be any impact on Current Ratio
The Cost of Goods Sold is Rs.1,00,000/- and the opening stock and closing stock respectively are Rs.10,000/- and Rs.30,000/-. What is the Inventory Turnover Ratio? [18D01]
1. 10
2. 2.5
3. 5
4. 3
If the Average Inventory goes up what will be the effect on Inventory Turnover Ratio? [18D02]
1. The Credit Sales have increased
2. The Inventory Turnover Ratio increases
3. The Inventory Turnover Ratio decreases
4. Credit Purchases have increased
If the Debtors turnover ratio increases from 3 to 5 between two years 2002 and 2003, what will be the inference? [18M01]
1. The Credit Sales have increased
2. The Average Debtors have increases
3. The Credit Sales have decreased
4. Credit Purchases have increased
If the Creditors turnover ratio increases from 3 to 5 between two years 2002 and 2003, what will be the inference? [18M02]
1. The Credit Sales have increased
2. The Average Debtors have increases
3. The Credit Sales have decreased
4. Credit Purchases have increased
What is the formula for Inventory Turnover Ratio? [18M03]
1. Average Inventory/Cost of goods sold
2. Cost of goods sold/Average Inventory
3. Cost of goods purchased/Average Inventory
4. Average Inventory/Purchases
Debtors Turnover Ratio [18S01]
1. Average Debtors/Sales
2. Credit Sales/Average Debtors
3. Average Inventory/Average Debtors
4. Credit Purchases/Average Creditors
The credit sales of the firm is Rs.1,00,000/-. The Opening Debtors and Closing Debtors of the firm are Rs.10,000/- and Rs.30,000/-. What is the Debtors turnover ratio? [18S02]
1. 1
2. 2
3. 3
4. 5
Creditors Turnover Ratio [18S03]
1. Average Creditors/Sales
2. Credit Purchases/Average Creditors
3. Average Inventory/Average Debtors
4. Credit Sales/Average Debtors
Ratio measuring the Activity of a company is [18S04]
1. Debt-equity Ratio
2. Current Ratio
3. Debtors Turnover Ratio
4. Interest Coverage Ratio
The credit Purchases of the firm is Rs.2,00,000/-. The Opening Creditors and Closing Creditors of the firm are Rs.20,000/- and Rs.60,000/-. What is the Creditors turnover ratio? [18S05]
1. 1
2. 2
3. 3
4. 5
While calculating the Debt-equity Ratio Debentures should be added to [19D01]
1. Insiders Funds
2. Long Term Debt
3. Equity Share Capital
4. Fixed Interest Charges
A company has Debt-equity Ratio of 2:1. At this stage the Company has mobilized Debentures worth around Rs.5,00,000/-. What will be the effect on the Debt-equity Ratio? [19D02]
1. Debt-equity Ratio will go up
2. Debt-equity Ratio will remain unchanged
3. Debt-equity Ratio will go down
4. There will be no relationship to Debt-equity Ratio
The Interest Coverage Ratio is 1:2 for a firm. What do you understand from the Interest Coverage Ratio? [19M01]
1. The profits earned are insufficient to cover the interest charges
2. The profits earned are sufficient to cover the interest charges
3. The profits earned are equal to the interest charges
4. The profits earned have to relationship with interest charges
The Earning before Interest and Tax (EBIT) is Rs.4,00,000/- and the Fixed Interest Charges are Rs.1,00,000/-. What is the interest coverage ratio? [19M02]
1. 1:1
2. 4:1
3. 3:1
4. 2:1
Ratio measuring the Solvency of a Company is [19M03]
1. Current Ratio
2. Debt-Equity Ratio
3. Debtors Turnover Ratio
4. Return on Investment
Debt-Equity Ratio is [19S01]
1. Shareholders equity / Debt
2. Total Liability/Shareholders equity
3. Long Term Debt/Shareholders equity
4. Total Liability/Total Assets
What should be the reasonable level of Debt-Equity Ratio is [19S02]
1. 2:1
2. 1:2
3. 3:1
4. 1:3
The Debt-Equity Ratio for the year 2002 and 2003 are 2:1 and 1:2. What does the Ratio indicate? [19S03]
1. Debt of the Company has gone down in the year 2003
2. Debt of the Company has gone up in the year 2003
3. Debt of the Company has remained unchanged in the year 2003
4. Equity of the Company has remained unchanged in the year 2003
Interest Coverage Ratio [19S04]
1. EBIT/Average Debtors
2. Fixed Interest Charges/EBIT
3. EBIT/Fixed Interest Charges
4. Fixed Interest Charges/Bank Loan
The Profits earned by the Company are sufficient to pay the Interest is indicated by the following Ratio. [19S05]
1. Debt-equity Ratio
2. Interest Coverage Ratio
3. Debtors Turnover Ratio
4. Earning Per Share
The company has earned a Net Profit after Tax Rs.5,00,000/-. The number of shares of the Company is 50,000. During the year the company has given Bonus Shares of 50,000. What is the Earning Per Share? [20D01]
1. 0.1
2. 5
3. 10
4. 2
Earning Per Share for the year 2002 and 2003 are 5 and 6 respectively. What does this imply? [20D02]
1. Profits of the Company have gone down in the year 2003
2. Profits of the Company have gone up in the year 2003
3. Profits of the Company have remained unchanged in the year 2003
4. Losses of the Company have gone up in the year 2003
The Net Profit after Tax of XYZ Co., Ltd., is Rs.5,00,000/- and the number of shares of the Company are 1,00,000. The Market Price of the Shares of XYZ Co., Ltd., is Rs.200/-. What is the Price Earning Ratio? [20M01]
1. 5
2. 40
3. 500
4. 2500
Ratio measuring the Profitability of a Company is [20M02]
1. Current Ratio
2. Debt-Equity Ratio
3. Debtors Turnover Ratio
4. Return on Investment
Earning Per Share [20M03]
1. Profit before taxes/No of shares
2. Net Profit after taxes/No of Shares
3. Total Investment/No of shares
4. No of shares / Total Investment
The company has earned a Net Profit after Tax Rs.5,00,000/-. The number of shares of the Company is 50,000/-. The Earning Per Share is [20M04]
1. 0.1
2. 5
3. 10
4. 2
Return on Investment [20S01]
1. Net Profit before taxes/Total Investment
2. Net Profit after taxes/Total Investment
3. Total Investment/Net Profit after taxes
4. Net Profit after taxes Total Investment
Return on Assets [20S02]
1. Net Profit before taxes/Total Investment
2. Net Profit after taxes/Total Tangible Assets
3. Total Tangible Assets/Net Profit after taxes
4. Net Profit after taxes - Total Investment
Return on Capital Employed = [20S03]
1. Net Profit before taxes/Total Investment
2. Net Profit after taxes/Total Tangible Assets
3. Adjusted Net Profits/Capital Employed
4. Net Profit after taxes - Total Investment
Price Earning Ratio (P/E Ratio) [20S04]
1. Net Profit before taxes/No of shares
2. Net Profit after taxes/No of Shares
3. Market Price/Earning Per Share
4. No of shares / Total Investment

Sunday, October 26, 2008

ONLINE EXAMINATIONS [Mid 2 - mefa]

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