1. In Double-win strategy(a) Customer gets an additional benefit (b) Customer gets price debate.

(c) Both customs and the sales person come out with sense of satisfaction (d) Both (a) and (b) Ans: (b) 2. Consumer behavior, Perception is a process through which (a) a consumer make ultimate purchasing (b) a consumer is satisfied (c) a consumers mind receives, organizes and interprets physical stimuli (d) Both (a) and (c) Ans: (c) 3. Sales forecast implies (a) an estimate of the maximum possible sales opportunities present in a particular market segment (b) an estimate of sales, in physical units, in a future period (c) Both (a) and (b) (d) Neither (a) nor (b) Ans: (c) 4. In advertising for is not allowed on T.V (a) Liquour (b) Cigarattes (c) Both (a) and (b) (d) Neither (a) nor (b) Ans: (c) 5. A theory states that no matter how efficiently goods / services are produced, if they cannot be delivered to the customer in the quickest possible time it is vain. This theory is called (a) Quickest the best (b) Instant service (c) Service on time (d) Timely effort Ans: (b) 6. Entrepreneurs find direct marketing the attractive because of (a) Investment is low (b) It doesnt required specialized skills (c) Returns are quick (d) All of the above Ans: (d) 7. Demonstration is an exercise to (a) attractively pack and display the goods (b) prove the characteristic of the product (c) Both (a) and (b)

(d) Neither (a) and (b) Ans: (b) 8. Which among the following is not an example of Direct marketing ? (a) tele-marketing (b) sales on internet (c) mail order sales (d) Retail stores Ans: (d) 9. In selling consumption is the ultimate goal of the salesman while a marketer (a) identify consumer needs (b) develop an appropriate product / service to attain customer satisfaction (c) accomplish organizational goals through integrated marketing approach (d) All of the above Ans: (b) 10. In Banking services, market can be segmented on the basis of (a) density (b) customers (c) Both (a) and (b) (d) Neither (a) nor (b) Ans: (c) 11. Which of the following is not a Post testing Technique of advertisement ? (a) Sales test (b) Focus group (c) Enquiry test (d) Attitude test Ans: (d) 12. Casual research is basically concerned with (a) establishing cause and effect relationship (b) arriving at a forecast or prediction of interest (c) measuring and estimating the frequencies with which of things occur (d) All of the above. Ans: (a) 13. A method, in which Brand equity is measured by comparing difference between the retail price of the brand and the retail price of an unbranded product in the same category is called: (a) Brand goodwill method (b) Price premium method (c) Both (a) and (b) (d) Neither (a) nor (b) Ans: (b) 14. Media planning includes: (a) assessing lost (b) selecting the right medium

(c) both (a) and (b) (d) Neither (a) nor (b) Ans: (c) 15. In India, which commission can be approached to curb misleading advertisements (a) MRTP (b) MTP (c) ISPT (d) QTP Ans: (a) 16. In marketing initiator is a term which describes (a) who determines that some need is not being met and authorities a purchase to rectify the situation (b) who most directly involved in the consumption of the product (c) Both (a) and (b) (d) Neither (a) nor (b) Ans: (a) 17. What is the full form of LIC (a) Life Insurance Corporation (b) Life Insurance Commission (c) Life India Corporation (d) None of these Ans: (a) 18. recently has raised its stake beyond 10% in a few blue chip companies even after the insurance regulator IRDA decided to impose a cap of 10% on the institutions investment in a single company. (a) Life Insurance Corporation (b) General Insurance Corporation (c) Tata-AIG Insurance (d) None of these Ans: (a) 19. Life Insurance Corporation has made fresh investments in which of the following companies in which the investor now holds more than 10% of their respective equity capital. (a) Siemens (b) PTC India (c) Tata Power (d) Cipla (e) All of these Ans: (e) 20. RATAN Tata has finally pulled out its Nano car project from . ending months of speculations about the fate of the countrys most awaited car. (a) Singur (b) Salboni

(c) Pantnagar (d) None of these Ans: (a) 21. Name Indias largest company by market capitalization. (a) Reliance Industries (b) Tata Steel (c) Jindal Steel (d) None of these Ans: (a) 22. The promoters of Reliance Industries (RIL) recently converted their 12 crore warrants into an equal number of shares hiking the promoters holding in the company to 49%, with 52% voting rights. This involves an infusion of around . into the company. (a) Rs 15,142 crore (b) Rs 16,142 crore (c) Rs 5,142 crore (d) Rs 10,142 crore Ans: (a) 23. SAP consultancy Axon Group is based on which country ? (a) UK (b) India (c) Germany (d) Italy Ans: (a) 24. Which is SAP consultancy Axon Group in the news recently ? (a) SAP consultancy Axon Group will recommend HCL Technologies 441.1-million buyout offer to its shareholders, withdrawing its earlier recommendation of Infosys 407-million offer. (b) SAP consultancy Axon Group will open 500 training centres in Asia (c) SAP consultancy Axon Group will recommend buying of TCS (d) None of these Ans: (a) 25. ICICI Bank, CEO and managing director KV Kamath is taking the help of . to find his successor. The professor will obtain independent data regarding the leadership attributes of the shorlisted senior management executives. Name the professor (a) Professor Wayne Brockbank, a clinical professor of business at the University of Michigans Ross School of Business

(b) Director of IIM, Ahmedabad (c) Ministry of Human Resource, Govt of India (d) A committee formed of Professor from all IITs Ans: (a) 26. Bank Marketing menas (A) Selling of Bnaks (B) Buting of banks (C) Merger of banks (D) selling banks produts and services (E) Selling various items in banks Ans: (D) 27. Proper pricing is needed for (A) Extra charges of extra services (B) Levy of VAT (C) Good customer services (D) Putting burden on the customer (E) Service with extra facilities Ans: (C) 28. Alead means (A) Abanks marketing staff (B) Areligious leader (C) Banks chairman (D) Target Customer (E) Leash tied to a dog Ans: (D) 29. A good salesman should be(A) Agressive (B) Pushy (C) Fierce (D) Polite, but firm (E) Talkative Ans: (D) 30. Relationship selling means (A) Preparing a list of relatives (B) Cross selling (C) Selling to relatives (D) Selling to strangers (E) Telemarketing Ans: (B) 31.ATM are (A) Branches of banks (B) Manned couters of banks (C) Unmanned , cash dispensers (D) All of these (E) None of these Ans: (C) 32. Home loans are granted to (A) Individuals (B) Institutions (C) Builders (D) All of these (E) None of these Ans: (A) 33. Credit cards are used for -

(A) Cash withdrawals (B) Purchase of air tickets (C) Purchase of consumable items from retail outlets (D) All of these (E) None of these Ans: (D) 34. HNI means (A) Highly negative individual (B) High growth individual (C) High neutral individual (D) Highly necessary individual (E) All of these Ans: (B) 35. What menu is selected to cut , copy, and pest ? (A) File (B) Tools (C) Special (D) Edit (E) None of these Ans: (D) 36. The most important or powerful computer in a typical network (A) Desktop (B) Network client (C) Network server (D) Network station (E) None of these Ans: (C) 37. The primary purpose of software is to turn data into (A) Web sites (B) Information (C) Programs (D) Objects (E) None of these Ans: (C) 38. Which of the following is the largest unit of storage ? (A) GB (B) KB (C) MB (D) TB (E) None of these Ans: (D) 39. Which of the following is an example of connectivity ? (A) Internet (B) Floppy disk (C) Power cord (D) Data (E) None of these Ans: (A) 40. A collection of related file is called a (A) Character (B) Field

(C) Database (D) Record (E) None of these Ans: (C) Money and Banking Objective Questions 1. The largest revenue in India is obtained from __________ (A) Railways (B) Excise Duty (C) Sales Tax (D) Direct Taxes Ans : (B) 2. The tax levied by Central Government and collected by State Government is ________ (A) Stamp Duty (B) Excise Duty (C) Income Tax (D) Gift Tax Ans : (A) 3. What is the major share in revenue of State Governments? (A) Stamp Duty (B) Excise Duty (C) Sales Tax (D) Income Tax Ans : (C) 4. The tax levied by Local Governments i.e. Municipal Corporations and municipalities is ____________ (A) Income Tax (B) Wealth Tax (C) House Tax (D) Gift Tax Ans : (C) 5. The tax collected by the State Governments and given to local bodies is __________ (A) Income Tax (B) Wealth Tax (C) House Tax (D) Professional Tax Ans : (D) 6. The period for Call Money is ________ (A) 10 to 15days (B) 1 to 14 Days (C) 15 to 30 Days (D) One Month Ans : (B)

7. Who regulates the money circulation in India? (A) State Bank of India (B) Reserve Bank of India (C) NABARD (D) Commercial Banks Ans : (B) 8. Which of the following is not an organized sector in India? (A) Nationalised Banks (B) Regional Rural Banks (C) Cooperative Banks (D) Chits and Money lenders Ans : (D) 9. Who will settle the grievances of customers of banks? (A) Reserve Bank of India (B) State Bank of India (C) Local Courts (D) Ombuds Men Ans : (D) 10. Who introduced the Banking Ombudsmen Scheme? (A) ARBI (B) SBI (C) Ministry of Finance (D NABARD Ans : (A) 11. When was OMBUDS MEN SCHEME first introduced? (A) November 2006 (B) October 1981 (C) June 1995 (D) January 1998 Ans : (C) 12. Which was the firth Bank corporated by the Indians? (1881) (A) Imperial Bank of India (B) State Bank of India (C) Avadh Commercial Bank (D) Reserve Bank of India Ans : (C) 13. When was the Avadh Commercial Bank established? (A) 1881 (B) 1894 (C) 1898 (D) 1899 Ans : (A) 14. When was Reserve Bank of India established? (A) 1920 (B) 1925 (C) 1935 (D) 1948 Ans : (C) 15. When was Reserve Bank of India Nationalised? (A) 1947 (B) 1948 (C) 1949 (D) 1950 Ans : (C) 16. When was Indian Banking Act come into force? (A) 1948 (B) 1949 (C) 1950 (D) 1951 Ans : (B)

17. Imperial Banks were amalgamated and changed as __ (A) Reserve Bank of India (B) State Bank of India (C) Subsidiary Banks (D) Union Bank of India Ans : (B) 18. When was Imperial Bank was Changed as State Bank of India? (A) January 1st 1935 (B) Feb 26 1947 (C) July 1st 1955 (D) July 1st 1959 Ans : (C) 19. How many banks were first nationalised? (A) 10 (B) 12 (C) 14 (D) 16 Ans : (C) 20. When was the second phase of nationalisation done? (A) 9th July 1969 (B) 10th July 1968 (C) 16th August 1985 (D) 15th April, 1980 Ans : (D) 21. How many banks were in second phase of nationalisation? (A) 4 (B) 5 (C) 6 (D) 7 Ans : (C) 22. Who will act as the banker to the Government of India? (A) State Bank of India (B) Reserve Bank of India (C) NABARD (D) Nationalised Banks Ans : (B) 23. Where is the Head Quarter of Reserve Bank of India? (A) Mumbai (B) Delhi (C) Kolkotta (D) Ahmedabad Ans : (A) 24. Who was first governor of Reserve Bank of India? (A) K. A. Narasimham

(B) V. K. Malhotra (C) A. K. Vadia (D) A. B. A Smith Ans : (D) 25. When was Lead Bank Scheme introduced? (A) 1967 (B) 1968 (C) 1969 (D) 1974 Ans : (C) 1. The minimum paid-up share capital for a public company shall be (A) Rs. 1 lakh (B) Rs. 2 lakhs (C) Rs. 3 lakhs (D) Rs. 5 lakhs Ans : (D) 2. Internal activity of a company is going to be performed according to established regulations. This assumption is provided as a right by (A) Doctrine of Indoor Management (B) Doctrine of Constructive Notice (C) Doctrine of Ultravires (D) Doctrine of Intravires Ans : (A) 3. A public company can start its business operations after getting (A) Certificate of Incorporation (B) Minimum Subscription (C) Certificate of Commencement of Business (D) Permission of the Controller of Capital Issue Ans : (C) 4. Under Section 275 of the Companies Act, 1956 a person can become director in public company of not more than (A) 5 companies (B) 10 companies (C) 15 companies (D) 20 companies Ans : (C) 5. Articles of Association can be altered by passing (A) An ordinary resolution in Annual General Meeting (B) A special resolution in Annual General Meeting (C) A resolution with special notice (D) Without any resolution Ans : (B) 6. In case of Board Meetings the Quorum must be present

(A) At the commencement of the meeting (B) At the termination of the meeting (C) Throughout the meeting (D) At the commencement and termination both Ans : (A) 7. In a public company the minimum number for having a Quorum in a meeting is (A) 2 (B) 3 (C) 5 (D) 7 Ans : (C) 8. The capital issues of public limited companies are subject to guidelines issued by (A) Reserve Bank of India (B) Central Government (C) Central Bank of India (D) Securities & Exchange Board of India (SEBI) Ans : (D) 9. Disinvestment of shares means (A) To sale the shares of private company to public (B) To sale the shares of public company to the public (C) To sale the shares of Government company to the public (D) To sale of shares by holding company to its subsidiary company Ans : (B) 10. When the existing companies raise additional funds by issue of shares to the existing shareholders in proportion to their existing shareholdings, it is called (A) Buyback of shares (B) Issue of shares at premium (C) Issue of shares at discount (D) Right shares issue Ans : (D) 11. Bombay Stock Exchange Sensex consists of script as on 31st March, 2005. (A) 10 (B) 20 (C) 30 (D) 40 Ans : (C) 12. The basic aim of Securities and Exchange Board of India (SEBI) is to (A) Develop an effective and efficient monitoring and control system for the Indian Capital Market (B) To help Bombay Stock Exchange only (C) To help National Stock Exchange of India Ltd. only (D) To help OTC Exchange of India only Ans : (A) 13. Who is Father of Scientific Management ?

(A) Henry Fayol (B) Elton Mayo (C) Chester Bernard (D) F. W. Taylor Ans : (D) 14. Principle of Unity of Command means (A) Unity of directions (B) To receive orders from one officer only (C) A fixed place for every person (D) Proper delegation to subordinates Ans : (B) 15. Managerial Planning is a (A) Middle Level Function (B) Lower Level Function (C) Top Level Function (D) All Level Function Ans : (D) 16. Organisation is the foundation of management. This statement is given by (A) Henry Ford (B) Haney (C) Keeling (D) Lansberry Fish Ans : (A) 17. The number of subordinates a superior can effectively handle is called (A) Cooperation (B) Coordination (C) Supervision (D) Span of control Ans : (D) 18. In Need Hierarchy Theory of Abraham H. Maslow, Self Actualisation needs are at level (A) Lower level needs (B) Middle level needs (C) Higher level needs (D) Highest level needs Ans : (A) 19. Motivation - Hygiene Theory was propounded by (A) Abraham H. Maslow (B) Fredrick Herzberg (C) Peter F. Druker (D) Argyris Chris Ans : (B) 20. Carrot and Stick principle is given in Theory (A) McGregor Theory X (B) McGregor Theory Y (C) William Ouchi Theory Z (D) None of the above Ans : (C) 21. Organisation is a Management Process by which people, functions and physical factors are brought

together to form a controllable unit. This definition is given by (A) Haney (B) Kelling B. Lewis (C) Oliver Sheldon (D) Cornell Ans : (C) 22. Out of the following forms, which form of organisation is the oldest one ? (A) Line and staff organisation (B) Functional organisation (C) Committee organisation (D) Line organisation Ans : (D) 23. A body of persons elected or appointed to meet on an organised basis for the discussion and dealing of matters brought before it. It is called (A) Functional organisation (B) Formal organisation (C) Committee organisation (D) Informal organisation Ans : (C) 24. Due to coordination (A) There is a unity of order (B) There is a unity of direction (C) There is a leadership (D) Employees are motivated Ans : (A) 25. In Direction who is given importance ? (A) To machines (B) To paper work (C) To man (D) To production Ans : (C) 26. The Essence of Control is (A) To take decision (B) To take corrective action (C) To make enquiry (D) To motivate Ans : (B) 27. An annual general meeting may be called after giving shorter notice instead of 21 clear days, if consent is accorded by (A) All the directors of company (B) All the members entitled to vote there at (C) Majority of members entitled to vote there all (D) None of the above Ans : (B) 28. The position of a Company Secretary is like that of a hub in a bicycle wheel. This statement shows the

(A) Importance of Company Secretary (B) Rights of Company Secretary (C) Duties of Company Secretary (D) Liabilities of Company Secretary Ans : (A) 29. The first Secretary of the company is appointed by (A) Shareholders (B) Promoters (C) Government (D) Directors Ans : (B) 30. Appointment of full time Company Secretary is compulsory in all those companies, whose paidup share capital is (A) Rs. 50 lakhs or more (B) Rs. 1 crore or more (C) Rs. 2 crores or more (D) Rs. 3 crores of more Ans : (C) 31. A meeting of the shareholders held only once during the life time of the company is known as (A) Meeting of the Directors (B) Meeting of the Creditors (C) Extraordinary General Meeting (D) Statutory Meeting Ans : (D) 32. For calling the Extraordinary General Meeting a clear notice of days must be given to all the members. (A) 7 (B) 15 (C) 21 (D) 30 Ans : (C) 33. Appointment of a person who is a Director, as a Secretary in the Company would require approval of the company by (A) Special Resolution (B) Ordinary Resolution (C) Resolution by circulation (D) None of the above Ans : (A) 34. The first Stock Exchange in India was established in (A) Calcutta (B) Delhi (C) Bombay (D) Madras Ans : (C) 35. Blue Chips Shares mean (A) Those shares which are listed in Stock Exchange (B) Those shares whose guarantee is given by Government

(C) Those shares on whom dividend is paid at higher rate regularly (D) Those shares which are issued at first time Ans : (C) 36. FEMA stands for (A) Foreign Exchange Management Act (B) Funds Exchange Management Act (C) Finance Enhancement Monetary Act (D) Future Exchange Management Act Ans : (A) 37. What of the following is false about W.T.O. ? (A) It is the main organ for implementing the Multilateral Trade Agreement (B) It is global in its membership (C) It has far wider scope than GATT (D) Only countries having more than prescribed level of total GDP can become its member Ans : (D) 38. Convertibility of the rupee implies (A) Being able to convert rupees notes into gold (B) Allowing the value of the rupee to be fixed by marketforces (C) Freely permitting the conversion of rupee to other major currencies and vice versa (D) Developing an international market for currencies in India Ans : (C) 39. has been founded to act as permanent watchdog on the international trade. (A) ISRD (B) ADS (C) WTO (D) DIMF Ans : (C) 40. Which of the following statement is correct ? (A) The disinvestment programme has been successfully carried out in India (B) Privatisation up to 100% has been carried out in all the PSU in India (C) Under strategic sale method of disinvestment, the government sells a major share to a strategic partner (D) None of the above Ans : (C) 41. The present World Economic Depression first of all, started from which country ? (A) U.S.A. (B) U.K. (C) France

(D) India Ans : (A) 42. Which, institution is known as the Soft Loan Window of World Bank ? (A) I.F.C. (International Financial Corporation) (B) I.D.A. (International Development Association) (C) I.M.F. (International Monetary Fund) (D) Indian Development Forum Ans : (B) 43. Which is not a insurable risk ? (A) Accident Risk (B) Loss of Crops Risk (C) The Risk of Trading in New Market (D) The Risk of Sinking of a Ship Ans : (C) 44. The Life Insurance in India was nationalised in the year (A) 1870 (B) 1956 (C) 1960 (D) 1966 Ans : (B) 45. Fire Insurance is based on the principle of (A) Utmost Good faith (B) Insurable Interest (C) Indemnity (D) Cooperation Ans : (C) 46. In order to reduce the risk of heavy insurance the insurer passes on some business to the other company, it is called (A) Reinsurance (B) Double Insurance (C) Joint Insurance Policy (D) Separate Insurance Ans : (A) 47. Contents of Marine Insurance include (A) Insurance of Cargo only (B) Insurance of Freight only (C) Insurance of Hull only (D) Insurance of Cargo, Freight & Hull Ans : (D) 48. The object of Agenda is to inform (A) About the profitability and activity (B) About the progress of company (C) About the matter in sequence to be discussed in the meeting (D) About the routine matters Ans : (C) 49. The Branch of Accounting which is concerned with the processing and presenting data for decision making

is known as (A) Common Dollar Accounting (B) Social Accounting (C) Cost Accounting (D) Management Accounting Ans : (D) 50. Final accounts prepared in narrative style are in (A) Horizontal form (B) Accounts form (C) Vertical form (D) None of the above Ans : (C) 51. According to Balance Sheet equation concept, the capital will be (A) Capital = Liabilities Assets (B) Capital = Fixed Assets Current Assests (C) Capital = Assets Liabilities (D) Capital = Assets + Liabilities Ans : (C) 52. In common size Balance Sheet analysis we evaluate (A) Increase or decrease over two years is analysed (B) Only increase over two years is analysed (C) Only decrease over two years is analysed (D) All assets and liabilities are expressed in terms of percentage of total Ans : (D) 53. Increase in fixed asset due to purchase is (A) Source of fund (B) Fund from operation (C) Use of fund (D) None of the above Ans : (C) 54. For the purpose of preparation of fund flow statement, fund means (A) Total resources (B) Cash/bank balances (C) Current Assets (D) Working capital Ans : (D) 55. The following data, relates to manufacturing company for the year 2006-07 Net Profit as per P & L A/cRs. 2,40,000; DepreciationRs. 80,000; Goodwill written-offRs. 40,000, Profit on Sale of Fixed AssetsRs. 16,000, Proposed DividendRs. 96,000. The fund from operation would be (A) Rs. 4,40,000 (B) Rs. 4,00,000 (C) Rs. 6,40,000 (D) None of the above Ans : (D) 56. Total sales is Rs. 7,60,000, cash sales Rs. 30,000 collection period is 25 days, debtors at Balance Sheet

date will be (A) Rs. 80,000 (B) Rs. 70,000 (C) Rs. 60,000 (D) Rs. 50,000 Ans : (D) 57. Price earning ratio is 8333% and E.P.S. is Rs. 30. The market price of equity share will be (A) Rs. 3333 (B) Rs. 6667 (C) Rs. 20 (D) Rs. 25 Ans : (D) 58. If the current ratio is 2, current assests are worth Rs. 1,600, if current ratio is not allowed to fall below 15, how much additional can be borrowed by the company on the short term basis ? (A) Rs. 400 (B) Rs. 600 (C) Rs. 2,733 (D) Rs. 800 Ans : (A) 59. Rate of Gross Profit on cost is 25%. Total sales is Rs. 1,00,000 and Average Stock is Rs. 1,60,000. Stock Turnover Ratio will be (A) 05 times (B) 08 times (C) 010 times (D) 04 times Ans : (A) 60. Average stock of firm is Rs. 80,000, the opening stock is Rs. 10,000 less than closing stock. Find opening stock. (A) Rs. 95,000 (B) Rs. 85,000 (C) Rs. 90,000 (D) Rs. 75,000 Ans : (D) 61. Current Ratio is 375, Acid Test Ratio is 125 Stock Rs. 3,75,000, calculate working capital. (A) Rs. 3,00,000 (B) Rs. 4,00,000 (C) Rs. 4,12,500 (D) Rs. 4,25,000 Ans : (C) 62. From the information given below, calculate Debt service coverage Ratio Net profit after interest and Tax Rs. 40,000, Depreciation Rs. 5,000, Rate of Income Tax 50%, 10% Mortgage Debentures Rs. 60,000. Fixed Interest Charges Rs. 6,000, Debenture Redemption Fund

Appropriation of Outstanding Debentures 10%. (A) 406 times (B) 506 times (C) 606 times (D) 706 times Ans : (A) 63. Share premium account can be used for (A) Paying tax liability (B) Meeting the cost of issue of shares or debentures (C) Paying Dividend on shares (D) Meeting the loss on sale of old asset Ans : (B) 64. Ploughing-back of profits means (A) Dividend declared but not claimed by shareholders (B) Non-declaration of dividend in any year (C) Profits earned from illegal sources and employed in business (D) Retaining the earnings of business for future expansion programme Ans : (D) 65. As per Schedule VI of the Companies Act, 1956, Forfeited Share Account will be (A) Added to paid up capital (B) Deducted from called up capital (C) Added to capital reserve (D) Shown as a revenue reserve Ans : (B) 66. A company invited application for subscription of 5,000 shares. The application were received for 6,000 shares. The shares were allotted on pro-rata basis. If X has applied for 180 shares how many shares would be allotted to him ? (A) 180 shares (B) 200 shares (C) 150 shares (D) 175 shares Ans : (C) 67. Consider the following information pertaining to K Ltd. on September 4, 2005, the company issued 12,000 7% debentures having a face value of Rs. 100 each at a discount of 25%. On September 12, the company issued 25,000 preference shares of Rs. 100 each. On September 29, the company redeemed 30,000 preference shares of Rs. 100 each at a premium of 5% together with one month dividend @ 6% p.a. thereon. Bank balance on August 31, 2005 was Rs. 30,00,000. After effecting the above transaction, the Bank Balance as on September 30, 2005 will be (A) Rs. 35,15,000 (B) Rs. 33,80,000 (C) Rs. 33,45,000 (D) Rs. 35,05,000 Ans : (A) 68. The balance appearing in the books of a company at the end of year were CRR A/c Rs. 50,000, Security

Premium Rs. 5,000, Revaluation Reserve Rs. 20,000, P & L A/c (Dr) Rs. 10,000. Maximum amount available for distribution of Bonus Share will be (A) Rs. 50,000 (B) Rs. 55,000 (C) Rs. 45,000 (D) Rs. 57,000 Ans : (B) 69. R. G. Ltd. purchased machinery from K.G. Company for a book value of Rs. 4,00,000. The consideration was paid by issue of 10%. Debenture of Rs. 100 each at a discount of 20%. The debenture account will be credited by (A) Rs. 4,00,000 (B) Rs. 5,00,000 (C) Rs. 3,20,000 (D) Rs. 4,80,000 Ans : (A) 70. Depletion method of depreciation is used in case of (A) Cattle, Loose Tools, etc. (B) Mines, Quarries, etc. (C) Machinery, Building, etc. (D) Books Ans : (B) 71. V. V. Bros. purchased a machine on 1st October, 2003 at cost Rs. 2,70,000 and spent Rs. 30,000 on its installation. The firm written off depreciation 10% per annum on original cost every year. The books are closed on 31st March every year. The machine is sold on 30 September, 2006 for Rs. 1,90,000. How much amount will be transferred to P & L A/c as loss on sale of machinery ? (A) Rs. 10,000 (B) Rs. 20,000 (C) Rs. 30,000 (D) Rs. 40,000 Ans : (B) 72. Accounting for Intangible Assets are related to (A) AS - 10 (B) AS - 12 (C) AS - 24 (D) AS - 26 Ans : (D) 73. Indian Accounting Standard 28 is related to (A) Accounting for taxes on income (B) Financial Reporting of Interests in Joint Venture (C) Impairment of Assets (D) Provisions, Contingent Liabilities and Contingent Assets Ans : (C) 74. Recording of capital contributed by the owner as

liability ensures the adherence of principle of (A) Consistency (B) Going concern (C) Separate entity (D) Materiality Ans : (C) 75. A company made the purchases of an item during its financial year. January 2007 200 @ Rs. 50 each May 2007 400 @ Rs. 60 each August 2007 600 @ Rs. 70 each Novem- 2007 300 @ Rs. 80 each ber Closing inventories were 500 articles. Find out the value of closing stock as per Weighted Average Method (A) 33,33333 (B) 16,66666 (C) 66,66667 (D) 96,66666 Ans : (A) 76. A fire occurred in the premises of M Ltd. on 30th September, 2007. The stock was destroyed except to the extent of Rs. 10,000. From the information given below, calculate the value of stock burnt by fire on 30th September, 2007. Stock on 1st April 2006, Rs. 90,000, Purchases less returns during 2006-07 10,00,000, Sales less returns during 2006-07, 15,00,000; Stock on 31st March, 20071,80,000, Purchases less returns from 1st April 2007 to 30th September 2007, 7,00,000. Sales less returns from 1st April, 2007 to 30th September 2007, 10,00,000. It was the practice of the company to value stock less 10% (A) 3,00,000 (B) 2,90,000 (C) 1,90,000 (D) 2,80,000 Ans : (B) 77. Social Accounting means (A) Accounting for social benefits and social costs (B) Accounting for Government Revenue & Govt. Cost (C) Accounting for private revenue and private cost (D) None of the above Ans : (A) 78. It is given that cost of stock is Rs. 100. However, its market price is Rs. 98 (buying) and Rs. 140 (selling). If the market price is interpreted as the replacement cost, then the stock should be valued at (A) Rs. 98 (B) Rs. 100 (C) Rs. 140 (D) Rs. 40Ans: (A) 79. If the goods purchased are in transit, then the

Journal Entry at the end of the period will be (A) Goods in Transit A/c Dr. To Suppliers A/c (B) Goods in transit A/c Dr. To Purchases A/c (C) Stock A/c Dr. To Goods in Transit A/c (D) Suppliers A/c Dr. To Goods in Transit Ans : (B) 80. Calculate Return on Investment/ Return on Proprietors fund. Gross profit of a firm is Rs. 3,20,000, Operating expenses Rs. 1,00,000, Taxes Rs. 20,000, Owners fund Rs. 5,00,000, Debenture Interest Rs. 50,000 (A) 20% (B) 30% (C) 40% (D) 50% Ans : (B) 81. The following figures are presented to you Year Sales Profit/Loss 1999 Rs. 1,00,000 Rs. 10,000 (Loss) 2000 Rs. 2,50,000 Rs. 20,000 (Profit) Calculate Profit Volume Ratio. (A) 5% (B) 10% (C) 15% (D) 20% Ans : (D) 82. The following particulars relate to manufacturing factory for the month of March 2008. Variable cost per unit Rs. 11; Fixed factory overhead Rs. 5,40,000; Fixed selling overhead Rs. 2,52,000; Variable selling cost Rs. 3; Sales Price per unit Rs. 20. Find out the Break-Even Point in rupees (A) Rs. 26,40,000 (B) Rs. 30,80,000 (C) Rs. 25,20,000 (D) Rs. 27,40,000 Ans : (C) 83. The following information is obtained from the records of K Co. Ltd. Sales (1,00,000 units) Rs. 1,00,000 Variable cost Rs. 40,000 Fixed cost Rs. 30,000 Find out margin of safety. (A) Rs. 20,000 (B) Rs. 25,000 (C) Rs. 30,000 (D) Rs. 50,000 Ans : (D) 84. A manufacturer is operating at 50% of its capacity, due to competition. The following are the details. Raw materials Rs. 6 per unit, Direct Labour Rs. 4 per unit. variable overhead - Rs. 3 per unit, fixed overhead - Rs. 2 per unit, output 15,000 units, total cost Rs. 2,25,000, sales value Rs. 2,10,000, loss Rs. 15,000. A foreign customer wants to buy 6,000 units at Rs. 1350 per unit and the company does not know whether to accept or not as it is suffering losses at the current level. Advise what he should do ? (A) Accept the offer (B) Reject the offer (C) Remains indifferent (D) None of the above Ans : (B)

85. I took the order for 5,000 units at Rs. 50 each because I got more than the cost incurred to produce them, said the Works Manager, and produced the following figures Before accepting After accepting the order the order Rs. Rs. Variable costs 2,50,000 4,00,000 Fixed costs 7,50,000 8,51,000 Total costs 10,00,000 12,51,000 Cost/unit 40 4170 Analyse the above figures and the decision taken. Acceptance of this offer has (A) Lowered his profit by Rs. 500 (B) Lowered his profit by Rs. 1,000 (C) Lowered his profit by Rs. 1,500 (D) Lowered his profit by Rs. 2,000 Ans : (C) 86. The following data are provided to you. Fixed cost - Rs. 20,000; Selling price per unit - Rs. 25, Variable cost per unit - Rs. 20. Find out selling price per unit if B.E.P. is brought down to 2,000 units. (A) Rs. 30 (B) Rs. 40 (C) Rs. 50 (D) Rs. 60 Ans : (C) 87. Among the following which is not an error of commission ? (A) Wrong totaling (B) Recording with wrong amount (C) Wrong posting (D) Escape from posting Ans : (D) 88. Internal check means Particulars
(A) Checking of accounts by cashier (B) Checking of accounts by the Internal Auditor (C) Checking the work of one person by another automatically (D) Managerial control internally over the subordinates Ans : (C)

following cases, the decision has been given ? (A) The Kingston Cotton Mills Co. Ltd. (1986) (B) London & General Bank (1895) (C) Allen Craig & Co. Ltd. (1934) (D) Irish Woollen Co. Ltd. Ans : (B) 93. The Section 80A of the Companies Act is related with the redemption of (A) Debentures (B) Redeemable preference shares (C) Irredeemable preference shares (D) None of the above Ans : (C) 94. Company Auditor is responsible (A) For directors (B) For shareholders (C) For public (D) For creditors Ans : (B) 95. In Balance Sheet, Audit Accounts are audited (A) Monthly (B) Bi-monthly (C) Annually or half yearly (D) Quarterly Ans : (C) 96. Audit adopted by banking company is (A) Continuous Audit (B) Periodical Audit (C) Internal Audit (D) Balance Sheet Audit Ans : (A) 97. Which of the following have lien of Company Auditor ? (A) Books of Accounts of the Company (B) Vouchers of the Company (C) Auditors working paper (D) All of the above Ans : (C) 98. To appoint new auditor in place of retiring auditor, to adopt the procedure, which section of Companies Act, 1956 is applicable ? (A) 223 (B) 224 (C) 225 (D) 226 Ans : (B) 99. A company has a separate legal existence from its members. This principle was first laid down in case of (A) Saloman Vs. Saloman & Co. Ltd. (1897) (B) Daimler Co. Ltd. Vs. Continental Tyre & Rubber Co. (1916) (C) State of U. P. Vs. Renu Sagar Power Co. (1991) (D) Santunu Roy Vs. Union of India (1989) Ans : (A) 100. According to ownership, Government Company means share. (A) Whose paid-up share capitals 48%, shares are owned by Government (B) Whose paid-up share capitals 49% shares are owned by Government (C) Whose paid-up share capitals 50% shares are

89. Verification includes (A) Valuation (B) Existence (C) Ownership & Title (D) All of the above Ans : (D) 90. By whom from the following, auditor can be reappointed ? (A) Directors (B) Shareholders (C) Central Government (D) All of the above Ans : (D) 91. Auditor shall be punished with imprisonment for a maximum period of years under Section 539 for falsification in the books of accounts. (A) 3 (B) 5 (C) 7 (D) 9 Ans : (C) 92. Auditor is not an insurer. In which of the

owned by Government (D) Whose paid-up share capitals 51% shares are owned by Government Ans : (D)