Navodaya Vidyalaya Samiti P.G.T. Exam of the year 2014 held on dated 1 June, 2014. We are giving 80 questions of Commerce of this exam with answers.
( See Questions No 1-40 )
41. According to ……….personal expenses paid by owner from his own pocket should not be recorded in accounting-books.
(A) going Concern Concept (B) cost Concept
(C) business Entity Concept (D) conservatism (Ans : C)
42. Goods withdrawn by owner for his personal use will be-
(A) debited to goods account (B) debited to drawing account
(C) debited to capital account (D) debited to cash account (Ans : B)
43. Which of the following error can be detected by trial balance ?
(A) Error of omission (B) Error of principle
(C) Error in casting of subsidiary books (D) Error of commission (Ans : C)
44. Outstanding expenses shown in trial balance should be shown on-
(A) Debit ‘side of Profit arid Loss A/c (B) Credit side of Profit and Loss A/c
(C) Assets side (D) Liability side (Ans : D)
45 . Overcasting of sales books, could be rectified by-
(A) Debiting suspense account and crediting sales account
(B) Debiting sales account and crediting suspense account
(C) Debiting cash account and crediting sales account
(D) Debiting sales account and crediting cash account (Ans : B)
46. If overdraft balance as per cash book is Rs. 10000 and bank charges not recorded in cash book amount to Rs. 1000, the-balance as per pass book, will be–
(A) 11000 Credit (B) 11000 Debit
(C) 9000 Credit (D) 9000 Debit (Ans : B)
47. To record dishonour of endorsed bill ……….account should be debited.
(A) creditor account (B) debtor account
(C) bank account (D) bill receivable account (Ans : B)
48. Financial position of business under incomplete accounting record is shown through–
(A) Statement of Affairs (B) Balance Sheet
(C) Statement of Fund Flow (D) None of the above (Ans : A)
49. Under fluctuation method interest on partner’s capital is-
(A) Credited to partner’s current account
(B) Credited to partner’s capital account
(C) Debited to ‘partner’s current account
(D) Debited to partner’s capital account (Ans : B)
50. A and B contributed capital of Rs. 90000 and 85000 respectively and agreed to share profit and loss in the ratio of 3 : 2. What will be the balance of A’s capital after revaluation if machinery worth Rs. 120000 valued at Rs. 90000 and creditors worth Rs. 45000 revalued at Rs. 35000?
(A) 102000 (B) 97000 (C) 78000 (D) 73000 (Ans : C)
51. Partnership firm, will not be compulsorily dissolved by court in case of–
(A) Persistent breach of agreement by partners
(B) Business become illegal due to change in law
(C) Continuous huge -losses of business
(D) Retirement of one partner out of three partners (Ans : D)
52. Which of the following is not based upon expectations?
(A) Useful life (B) Residual Value
(C) Historical Value (D) Salvage Value (Ans : C)
53. If the depreciated value of asset costing Rs. 100000 after 3 years comes at Rs. 76,000 under straight line depreciation, rate of depreciation will be–
(A) 8% (B) 24% (C) 16% (D) 55.33% (Ans : A)
54. Which of the following statements is incorrect?
(A) In consignment account goods may be recorded at their cost price
(B) All expenses incurred by the consignee are direct expenses
(C) Consignee is ‘an agent to business
(D) Del-credree consignee is personally responsible for bad debts (Ans : B)
55. The amount received in excess of face value of share is transferred to-
(A) Share capital account (B) Share redemption account
(C) Share premium account (D) Share call account (Ans : C)
56. Bonds not carrying any interest are known as-
(A) Zero coupons bonds (B) Secured premium notes
(C) Callable bonds (D) Deep discount bonds (Ans : A)
57. Which of the following statement is not correct in context to debentures?
(A) It is an owner’s capital (B) It may be redeemed through sinking fund
(C) It carries fixed rate of interest (D) It may be convertible (Ans : A)
58. Issue of equity shares for providing know-how or making available intellectual property tights is known as-
(A) Issue of bonus shares (B) Issue of sweat shares
(C) Issue of rights shares (D) Issue of convertible shares (Ans : B)
59. Which of the following statement is not correct ?
(A) Discount on issue shares is the excess of nominal value over issue price
(B) Discount on issue shares should be shown in the assets side of balance sheet
(C) In case of forfeiture of shares, discount on forfeited shares should be debited
(D) In case of forfeiture of shares, amount already received should be credited to share forfeiture account (Ans : C)
60. Credit balance left on forfeited shares-is transferred to-
(A) General reserve account (B) Capital reserve account
(C) Share premium account (D) Share capital account (Ans : B)
61. If the ‘current stock price is Rs. 50 per share and 1 new right share has been offered, to investor holding 4 shares, at a subscription price of Rs. 45 per share, what will be the value of right?
(A) 1 (B) 2 (C) 6 (D) 4 (Ans : A)
62. Which of the following is not a tool for analysing financial statement?
(A) Common size statement (B) Comparative statement
(C) Cash Budget (D) Cash flow statement (Ans : C)
63. Which of the following reflects is popularly use to reflect the efficiency of business / manager?
(A) Quick ratio (B) Turnover ratio
(C) Debt equity ratio (D) Operating profit ratio (Ans : B)
64. If current ratio is 3.0 and working capital is Rs. 15000, value of current assets will be–
(A) 45000 (B) 5000 (C) 22500 (D) 10000 (Ans : C)
65. Ideal acid test ratio is usually assumed to be-
(A) 3 : 1 (B) 1 : 1 (C) 1 : 3 (D) 1 : 4 (Ans : B)
66. If capital structure of a company comprise of equity capital worth Rs. 10 lakh, preference capital Rs. 6 lakh and debenture worth Rs. 14 lakh capital gearing ratio will be–
(A) 2.0 (B) 0.5 (C) 1.4 (D) 1.0 (Ans : A)
67. Receipt from sale of machinery will be shown under cash flow from-
(A) Operating activities (B) Financing activities
(C) Investing activities (D) Commercial activities (Ans : C)
68. Issue of preference shares is-
(A) Cash flow from Operating activities (B) Cash flow from Financing activities
(C) Cash flow from Investing activities (D) Cash flow from Commercial activities (Ans : B)
69. The opening and closing balance of provision for tax created by a business house stands at Rs. 20,000 and Rs. 30,000 respectively. If tax paid during the year is Rs. 15,000, provision made during the year will be-
(A) 25000 (B) 5000 (C) 10000 (D) 50000 (Ans : A)
70. Under Fund flow analysis, computed value of fund from operation is shown in the-
(A) Sources side of fund flow statement
(B) Application side of fund flow statement
(C) Increase side of Working capital statement
(D) Decrease side of Working capital statement (Ans : A)
71. What is not correct for cash flow statement?
(A) It provides information about sources and application of cash.
(B) It helps to know liquidity position.
(C) It ignores accrual concept.
(D) It is superior to income statement. (Ans : D)
72. Suitable costing method for a manufacturer manufacturing very few but most expensive sports cars will be-
(A) Process costing (B) Contract costing
(C) Job order costing (D) None of the above (Ans : C)
73. Which of the following will increase break even point of a company?
(A) Increase in Margin of safety (B) Decrease in fixed cost
(C) Increase in contribution (D) Increase in variable cost (Ans : D)
74. Factory cost does not include-
(A) Indirect manufacturing cost (B) Burden
(C) Factory overheads (D) Office overheads (Ans : D)
75. Cost incurred in recruitment, training and development of an employee is known as-
(A) Replacement cost (B) Opportunity cost
(C) Historical cost (D) Imputed cost (Ans : C)
76. Which of the following is not a feature of current cost accounting method?
(A) Stocks are shown at their replacement value.
(B) Depreciation is calculated at the current value of assets
(C) Inventory consumed is valued at the price at the date of consumption
(D) Fixed assets are shown at their depreciated original cost (Ans : D)
77. Which statement is not correct in context to inflation accounting?
(A) It is not acceptable by the tax authority
(B) It may sometimes result in arbitrary profits
(C) Financial statements lose their credibility as the objectivity concept is violated
(D) Comparison of figures over a period of time cannot be done easily (Ans : D)
78. Present value of future earning model was suggested by-
(A) Lev and Schwartz (B) Brummet, Flamholtz and Pyle
(C) Kenneth Sinclair (D) Hekimian and Jones
(Ans : A)
79. In context to database management system, SQL stands for-
(A) Standard Query Language (B) Structured Query Language
(C) Specific Query Language (D) Special Query Language (Ans : B)
80. The first electronic spreadsheet was-
(A) LOTUS (B) SAS
(C) VISICALC (D) FORTRAN (Ans : C)