Commerce Questions and Answers

Commerce Questions and Answers

1. The Essence of Control is–
(A) To take decision (B) To take corrective action
(C) To make enquiry (D) To motivate
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2. 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
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3. “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
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4. The first Secretary of the company is appointed by–
(A) Shareholders (B) Promoters
(C) Government (D) Directors
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5. 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
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6. Stock should include–
(A) Goods held as security
(B) Goods held as consignee
(C) Goods with customers for approval on sale or return basis
(D) Goods sold but not delivered
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7. Receipts and Payments Account is an abbreviated form of–
(A) Cash Book (B) Pass Book
(C) Both Cash Book and Pass Book (D) None of the above
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8. At what price the stock is valued under conventional method ?
(A) At cost price
(B) At market price
(C) At cost price or market price whichever is lower
(D) At cost price or market price whichever is higher
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9. Which of the following is a personal account ?
(A) Outstanding Expense (B) Investment
(C) Share premium (D) Salary
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10. On the admission of a partner, fictitious assets are–
(A) Transferred to Revaluation Account (B) Transferred to Capital Account
(C) Transferred to Reserves (D) Shown in the new Balance Sheet
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11. Strategy is used in–
(A) Military (B) Business
(C) Industry (D) All of the above
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12. ‘3-D’ Model of leadership is propounded by–
(A) Likert Reinsis (B) Kurt Levis
(C) William Ridin (D) Henry Fayol
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13. Personal selling includes–
(A) Selling (B) Services to the customers
(C) Developing goodwill of the firm (D) All of the above
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14. The process of evaluating employees is called–
(A) Performance appraisal (B) Recruitment
(C) Induction (D) Job evaluation
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15. Franking machine is used for–
(A) Specimen signature (B) Postage stamps
(C) Arrival and departure timings (D) None of the above
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16. Which one of the following statements about preparation of financial statements of a limited liability company is correct ?
(A) Financial statements should
be prepared according to the cash basis of accounting only
(B) Financial statements should be prepared according to the accrual basis of accounting only
(C) Financial statements should be prepared according to either the cash basis or accrual basis of accounting
(D) Financial statements should be prepared according to both the accrual and cash basis of accounting
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17. Expenses need to be recorded in the period in which the associated revenues are recognised. This is to be ensured as per which one of the following accounting principles ?
(A) Revenue recognition (B) Cost benefit
(C) Matching (D) Periodicity
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18. How is profit prior to incorporation treated as ?
(A) Revenue reserve (B) Secret reserve
(C) Capital reserve (D) General reserve
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19. Which one of the following has replaced the Budla system in India ?
(A) Rolling settlement (B) Trading in equity derivatives
(C) Depository system (D) Online trading
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20. Which one of the following is not correct ?
(A) Mutual Fund ensures its participants a professional management of portfolio selection
(B) Mutual Fund schemes can be open-ended and/or closeended
(C) Balanced Mutual Fund aims at earning current income and capital appreciation
(D) Mutual Fund is an investment company and a merchant banker
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