Commerce Quiz Questions and Answers
1. Mechanistic Structures are designed to–
(A) promote flexibility and quick responses to fast changing situations
(B) induce people to behave in predictable and accountable manner
(C) make people happy by assigning specific tasks to them
(D) perform assigned tasks within the scheduled time
See Answer:
2. The degree of decentralization in an organization depends most on–
(A) technology (B) size of workforce
(C) volume of transactions (D) competence of subordinates
See Answer:
3. One of the major disadvantages of the Matrix form of organization structure is that–
(A) it does not pinpoint product profit responsibility
(B) it is not oriented towards results
(C) there is possibility of disunity of command
(D) it generates rivalry between line and staff members
See Answer:
4. Wider span of control is effective in organization where–
(A) authority delegation is inadequate (B) tasks are complex
(C) thorough subordinate training scheme exists (D) the leadership style is authoritarian
See Answer:
5. Maintenance of intended delegation requires that decisions lying within the individual managers’ authority should be made by them and not referred upwards in the organizational hierarchy. This is known as–
(A) principle of unity of command (B) scalar principle
(C) authority level principle (D) principle of absoluteness of responsibility
See Answer:
6. The loss on the sale of old furniture is debited to–
(A) profit & loss account (B) furniture account
(C) trading account (D) depreciation account
See Answer:
7. If the purchases made during the year were Rs. 60,000, the balance of stock in trade at the beginning and at the end of the year were Rs. 12,000 and Rs. 9,000 respectively and the gross profit on sales was 1/5th, when which one of the following represents the figure of gross profit for the year ?
(A) Rs. 15,750 (B) Rs. 14,000
(C) Rs. 12,500 (D) Rs. 17,250
See Answer:
8. A and B are sharing profits in the ratio of 2– 1. They admit C into the firm 1/4th share in profits for which he brings Rs. 12,000 as his share of capital. Therefore, the adjusts capital of B will be–
(A) Rs. 48,000 (B) Rs. 12,000
(C) Rs. 16,000 (D) Rs. 24,000
See Answer:
9. While making an adjusting entry in respect of interest on capital, we credit–
(A) capital account (B) profit & loss account
(C) interest on capital account (D) drawing account
See Answer:
10. A and B are partners sharing profits and losses in proportion 2– 1. They admit new partner C whom they give 1/5th share in profits. The new profit-sharing ratio will be–
(A) 8– 4– 3 (B) 3– 2– 1
(C) 2– 1– 1 (D) 4– 2– 1
See Answer:
11. The process of determining how to pursue long-term goals with the expected resources available to the orgnisation is called–
(A) Operational planning (B) Strategic planning
(C) Intermediate planning (D) Tactical planning
See Answer:
12. The dividend per share in a company is Rs. 2, earning per share is Rs. 5, and the market value is Rs. 25. What will be its yield ?
(A) 20 per cent (B) 12•5 per cent
(C) 8 per cent (D) 25 per cent
See Answer:
13. Which one of the following statements related to auditing is not correct ?
(A) Chances of frauds are maximum in the case of cash sales.
(B) While routine checking is carried out vouching may be considered unnecessary.
(C) While vouching the cash receipts the auditor should study the system of internal check in operation.
(D) Vouching is the essence of auditing.
See Answer:
14. When can an Annual General Meeting be called after giving shorter notice than that specified ?
(A) If consent is accorded to by all the members entitled to vote
(B) If consent is accorded to by 30% of the members entitled to vote
(C) If Board of Directors takes a majority decision in this regard
(D) If the company secretary so wishes
See Answer:
15. Under which one of the following circumstances the Central Government is empowered to direct special audit of the companies ?
(A) Where any director has misappropriated the company’s fund
(B) Where a shareholder has complained to the Government about the non-payment of dividend
(C) Where the company has continuously defaulted in the payment of interest to the debentureholders
(D) Where the conduct of management is in the manner which is injurious to trade industry or business to which it pertains.
See Answer:
16. Disinvestment Commission was set-up in–
(A) 1995 (B) 1996
(C) 1997 (D) 1998
See Answer:
17. Auction Rated Debentures (ARDs) are a hybrid of–
(A) Shares and Debentures
(B) Shares and Commercial Papers
(C) Commercial Papers and Debentures
(D) Zero Interest Bonds and Deep Discount Bonds
See Answer:
18. In India, which Bank was the first to introduce Bonds with Floating Rates for retail investors ?
(A) Bank of Baroda (B) United Commercial Bank
(C) Punjab National Bank (D) State Bank of India
See Answer:
19. Which one of the following statements is false ?
(A) Floating Rate Bonds help the issuer to hedge the loss arising due to interest rate fluctuations
(B) The capital market is an important source of meeting the growing long-term financial requirements of corporates
(C) The Clearing Corporation of India Limited [CCIL] was registered on April 30, 2001
(D) The IDBI is the Chief promoter of CCIL
See Answer:
20. Which one of the following is not eligible to be Satellite Dealers (SDs) ?
(A) Subsidiaries of Scheduled Commercial Banks
(B) All-India Financial Institutions (AIFIs)
(C) Partnersip Firms with minimum net owned funds of Rs. 5 crore
(D) Companies incorporated under Companies Act, 1956 with minimum net owned funds of Rs. 5 crore.
See Answer:
(A) promote flexibility and quick responses to fast changing situations
(B) induce people to behave in predictable and accountable manner
(C) make people happy by assigning specific tasks to them
(D) perform assigned tasks within the scheduled time
See Answer:
2. The degree of decentralization in an organization depends most on–
(A) technology (B) size of workforce
(C) volume of transactions (D) competence of subordinates
See Answer:
3. One of the major disadvantages of the Matrix form of organization structure is that–
(A) it does not pinpoint product profit responsibility
(B) it is not oriented towards results
(C) there is possibility of disunity of command
(D) it generates rivalry between line and staff members
See Answer:
4. Wider span of control is effective in organization where–
(A) authority delegation is inadequate (B) tasks are complex
(C) thorough subordinate training scheme exists (D) the leadership style is authoritarian
See Answer:
5. Maintenance of intended delegation requires that decisions lying within the individual managers’ authority should be made by them and not referred upwards in the organizational hierarchy. This is known as–
(A) principle of unity of command (B) scalar principle
(C) authority level principle (D) principle of absoluteness of responsibility
See Answer:
6. The loss on the sale of old furniture is debited to–
(A) profit & loss account (B) furniture account
(C) trading account (D) depreciation account
See Answer:
7. If the purchases made during the year were Rs. 60,000, the balance of stock in trade at the beginning and at the end of the year were Rs. 12,000 and Rs. 9,000 respectively and the gross profit on sales was 1/5th, when which one of the following represents the figure of gross profit for the year ?
(A) Rs. 15,750 (B) Rs. 14,000
(C) Rs. 12,500 (D) Rs. 17,250
See Answer:
8. A and B are sharing profits in the ratio of 2– 1. They admit C into the firm 1/4th share in profits for which he brings Rs. 12,000 as his share of capital. Therefore, the adjusts capital of B will be–
(A) Rs. 48,000 (B) Rs. 12,000
(C) Rs. 16,000 (D) Rs. 24,000
See Answer:
9. While making an adjusting entry in respect of interest on capital, we credit–
(A) capital account (B) profit & loss account
(C) interest on capital account (D) drawing account
See Answer:
10. A and B are partners sharing profits and losses in proportion 2– 1. They admit new partner C whom they give 1/5th share in profits. The new profit-sharing ratio will be–
(A) 8– 4– 3 (B) 3– 2– 1
(C) 2– 1– 1 (D) 4– 2– 1
See Answer:
11. The process of determining how to pursue long-term goals with the expected resources available to the orgnisation is called–
(A) Operational planning (B) Strategic planning
(C) Intermediate planning (D) Tactical planning
See Answer:
12. The dividend per share in a company is Rs. 2, earning per share is Rs. 5, and the market value is Rs. 25. What will be its yield ?
(A) 20 per cent (B) 12•5 per cent
(C) 8 per cent (D) 25 per cent
See Answer:
13. Which one of the following statements related to auditing is not correct ?
(A) Chances of frauds are maximum in the case of cash sales.
(B) While routine checking is carried out vouching may be considered unnecessary.
(C) While vouching the cash receipts the auditor should study the system of internal check in operation.
(D) Vouching is the essence of auditing.
See Answer:
14. When can an Annual General Meeting be called after giving shorter notice than that specified ?
(A) If consent is accorded to by all the members entitled to vote
(B) If consent is accorded to by 30% of the members entitled to vote
(C) If Board of Directors takes a majority decision in this regard
(D) If the company secretary so wishes
See Answer:
15. Under which one of the following circumstances the Central Government is empowered to direct special audit of the companies ?
(A) Where any director has misappropriated the company’s fund
(B) Where a shareholder has complained to the Government about the non-payment of dividend
(C) Where the company has continuously defaulted in the payment of interest to the debentureholders
(D) Where the conduct of management is in the manner which is injurious to trade industry or business to which it pertains.
See Answer:
16. Disinvestment Commission was set-up in–
(A) 1995 (B) 1996
(C) 1997 (D) 1998
See Answer:
17. Auction Rated Debentures (ARDs) are a hybrid of–
(A) Shares and Debentures
(B) Shares and Commercial Papers
(C) Commercial Papers and Debentures
(D) Zero Interest Bonds and Deep Discount Bonds
See Answer:
18. In India, which Bank was the first to introduce Bonds with Floating Rates for retail investors ?
(A) Bank of Baroda (B) United Commercial Bank
(C) Punjab National Bank (D) State Bank of India
See Answer:
19. Which one of the following statements is false ?
(A) Floating Rate Bonds help the issuer to hedge the loss arising due to interest rate fluctuations
(B) The capital market is an important source of meeting the growing long-term financial requirements of corporates
(C) The Clearing Corporation of India Limited [CCIL] was registered on April 30, 2001
(D) The IDBI is the Chief promoter of CCIL
See Answer:
20. Which one of the following is not eligible to be Satellite Dealers (SDs) ?
(A) Subsidiaries of Scheduled Commercial Banks
(B) All-India Financial Institutions (AIFIs)
(C) Partnersip Firms with minimum net owned funds of Rs. 5 crore
(D) Companies incorporated under Companies Act, 1956 with minimum net owned funds of Rs. 5 crore.
See Answer:
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