Commerce Interview Questions

Commerce Interview Questions

1. 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
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2. Among the following which is not an error of commission ?
(A) Wrong totalling (B) Recording with wrong amount
(C) Wrong posting (D) Escape from posting
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3. Internal check means–
(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
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4. Verification includes–
(A) Valuation (B) Existence
(C) Ownership & Title (D) All of the above
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5. By whom from the following, auditor can be reappointed ?
(A) Directors (B) Shareholders
(C) Central Government (D) All of the above
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6. Liability of partners in respect of the firm’s debt is–
(A) Limited to the amount of his capital in the business
(B) Unlimited
(C) Limited to the amount of guarantee given by the partner
(D) Limited to the amount of capital and the loan to the firm, if any
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7. A Government Company is one in which at least the following percentage of share capital is held by the Central and/or State Government–
(A) 25% (B) 26%
(C) 50% (D) 51%
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8. Planning function of management is performed by–
(A) Top level management (B) Middle level management
(C) Lower level management (D) None of the above
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9. Special plans made for facing competition are known as–
(A) Objectives (B) Strategies
(C) Policies (D) Budgets
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10. ‘Span of Management’ means–
(A) A good organization should consist of five departments
(B) Authority of each person must be clearly defined
(C) Each subordinate should have one superior
(D) A manager can supervise a limited number of executives
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11. The function of an Auditor is–
(A) To examine arithmetical accuracy of accounts
(B) To detect and prevent errors
(C) To detect and prevent frauds
(D) All of the above
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12. Audit is compulsory for–
(A) Sole Trader (B) Partnership Firms
(C) Joint Stock Companies (D) All of the above
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13. Which of the following organisation makes "Doing Business Report" every year?
(A) WTO (B) World Bank
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14. In the absence of Articles of Association, an Auditor should keep in mind–
(A) Prospectus (B) Table ‘A’
(C) Memorandum of Association (D) Legal Declaration
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15. Who may recommend Special Audit of a Company ?
(A) Directors of the Company (B) Shareholders of the Company
(C) Debentureholders of the Company (D) Central Government
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16. Which one of the following statements is correct ?
(A) If an asset is used by a company, it should be owned by the company
(B) Verification of liabilities means that the amounts of current and long-term liabilities shown in the balance sheet are correct
(C) Vouching and verification means the same thing
(D) It is not the duty of an auditor to confirm the physical existence and ownership of an asset
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17. Which of t he following terms is normally not seen in the field of International Relations?
(A) Alluvial Soil (B) Exchange Rate
(C) OECD (D) Free Trade
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18. What does payout ratio mean ?
(A) Ratio of debtors to creditors
(B) Ratio of profit distributed to profit retained
(C) Ratio of dividends per share and earnings per share
(D) Retained earnings
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19. Consider the following statements–
1. Premium on issue of shares is transferred to General Reserve Account.
2. For declaration of bonus shares out of General Reserve, a resolution in the shareholders' meeting is necessary.
Which of the statements given above is/are correct ?
(A) 1 only (B) 2 only
(C) Both 1 and 2 (D) Neither 1 nor 2
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20. How is ‘Calls in arrear’ shown in the balance sheet on the liability side ?
(A) By deducting the amount from the called up capital
(B) Under the heading ‘Reserves and Surplus’
(C) By deducting the amount from ‘Capital Reserve’
(D) By deducting the amount from the ‘Share Forfeited Account’
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