SYBAF SEM - III ALL SUBJECT MULTIPLE CHOICE QUESTION
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1 SYBAF SEM - III ALL SUBJECT MULTIPLE CHOICE QUESTION
Transcript of SYBAF SEM - III ALL SUBJECT MULTIPLE CHOICE QUESTION
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SYBAF SEM - III
ALL SUBJECT
MULTIPLE CHOICE
QUESTION
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SY BAF - ECONOMICE – SEM-III – MCQ SMAPLE 50 QUESTIONS
1) The following is not the subject matter of macroeconomics (a) National income accounting
(b) Laws of demand and supply
(c) Business cycle
(d) General price level
2) Keynesian theory is not based on which of the following assumptions?
(a) Supply creates its own demand
(b) Markets can fail
(c) Government intervention can reduce the impact of recession
(d) Aggregate demand determines national output
3) Which of the following type of economy deals with the rest of the world?
(a) Closed
(b) Open
(c) Only developed
(d) Only developing
4) Which of the following economy is in equilibrium when investment is equal to saving?
(a) Closed
(b) Open
(c) Only developed
(d) Only developing
5) Which of the following measurements indicate how national income is distributed? (a) GDP
(b) GNP
(c) Per Capita Income
(d) NNP
6) GNI in an open economy is equal to—
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a. GDP+ (X-M)
b. GDP+ (X-M) + R-p
c. GDP+ (X+M)
d. GDP+ C+I+G
7) In which of the following phase there is considerable fall in production, employment, income and investment?
a. Recession
b. Depression
c. Recovery
d. Prosperity
8)According to whom wages are non-flexible downwards?
a. Keynes
b. Pigou
c. Say
d. Classical economists
9) During recession public expenditure should
a. remain constant
b. decrease
c. increase
d. elastic
10) The four sector circular flow economy does not include
a. world economy
b. Financial market
c. crude oil reserves in oil wells
d. investment
11) Traditional measure of money supply includes ---------
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a. Demand deposits and time deposits
b. Currency and time deposits
c. Currency and demand deposits
d. Currency and savings deposits
12) Cambridge ‘k’ represents
(a) Velocity of circulation of money
(b) Money supply
(c) Average price
(d) A proportion of real income held in cash balances
13) In cost push inflation, the supply curve shifts to the
(a) Left
(b) Right
(c) Horizontally upward
(d) Vertically upward
14) During inflation
(a) Value of money increases
(b) Value of money remains constant
(c) Value of money declines
(d) Value of commodities remain constant
15) Which of the following is not direct cause of demand pull inflation?
(a) Deficit financing
(b) Credit creation
(c) Scarcity of raw materials
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(d) Black money
16) Inflation targeting helps to control
(a) Economic growth
(b) Rate of inflation
(c) Growth of agriculture
(d) Growth of industry
17) Government budgetary policy during inflation should aim at
(a) Increasing expenditure
(b) Decreasing expenditure
(c) Increase in investment
(d) Lowering taxes
18) Transaction demand for money is explained by
(a) Neo-classical economist
(b) Classical economist
(c) Post-Keynesian economist
(d) Modern economist
19) Transaction motive is further subdivided into
(a) Speculative and precautionary
(b) Precautionary
(c) Income and business
(d) Profit and business
20) Which of the following is not true of the Cambridge version of quantity theory of money?
a. Consider store of value function of money
b. Consider only transaction motive for holding money
c. Consider “k” as a constant
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d. Consider “m” to be exogenously determined
21) Which of the following is not direct cause of demand pull inflation?
a. Deficit financing
b. Credit creation
c. Scarcity of raw material
d. Black money
22) In the cost push inflation, the supply curve shifts to the -------
a. Left
b. Right
c. Below the X-axis
d. Above the X-axis
23) During inflation ---------
a. Value of money increases
b. Value of money remains constant
c. Value of money declines
d. Prices remain constant
24) Government’s budgetary policy during inflation should aim at ----------
a. Increasing expenditure
b. Decreasing expenditure
c. Increase in investment
d. Lowering taxes
25) Inflation targeting helps to control --------
a. Economic growth
b. Rate of inflation
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c. Poverty
d. Inequality
26) Which of the following is not within the scope of public finance?
a. Public revenue
b. Monetary management
c. Public expenditure
d. Financial administration
27) -------- budget should be allowed during depression.
a. Deficit
b. Surplus
c. Balanced
d. Neutral
28) The term ‘functional finance’ was introduced by --------
a. Keynes
b. Musgrave
c. Hugh Dalton
d. A.P.Learner
29) An example of an externality is the impact of ------
a. Bad crops on the income of the farmer
b. A tax rate hike on person’s ability to purchase
c. Pollution from factory on the health of the people in the area
d. Increase in number of healthcare centers
30) Productive efficiency occurs when
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a. Average cost is declining
b. Marginal cost is negative
c. Maximum number of goods is produced with given amount of inputs
d. Maximum number of goods is produced with given amount of output.
31) An example of an externality is the impact of
a. Bad crops on the income of farmers
b. A tax rate on a person’s ability to purchase goods and services
c. Pollution from a factory on the health of people in the area
d. Increase in the number of health care centers
32) Which of the following is not a feature of public goods?
a. Non-rival in consumption
b. Non excludability
c. Free rider problem
d. Consumers voluntarily pay for such goods
33) In economics, a difference in access to relevant knowledge is called
a. An information gap
b. A frontier gap
c. Information asymmetry
d. Access imperfection
34) Which of the following is not the characteristics of a tax?
a. Compulsory payment
b. There is quid- pro- quo
c. Involves some sacrifice
d. Involves satisfaction
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35) Which of the following is not a non tax revenue?
a. Fees
b. Penalties
c. Custom duty
d. Borrowings
36) Incidence of tax refers to which of the following?
a. Final money burden of a tax
b. Initial money burden of a tax
c. Indirect money brden
d. Real burden of tax
37) In case of perfectly elastic demand the money burden of tax is
a. entirely on the sellers
b. Partially on the seller
c. entirely on the buyers
d. shifted partially to the buyers
38) In the case of perfectly inelastic demand the money burden is
a. entirely on the sellers
b. fully borne by the buyers
c. shifted partially to the buyers
d. entirely on the buyers
39) In the case of perfectly elastic supply the incidence of tax is
a. . entirely on the buyers
b. shifted partially to the buyers
c. borne fully by the seller
d. no burden on anyone
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40) The ability of the government to sustain its current spending, tax and other policies is called as ----------
a. Economic sustainability
b. Growth sustainability
c. Fiscal sustainability
d. Constant sustainability
41) Disposable income is ---------
a. Income before tax
b. Income before transfer payments are added
c. Gross income of firms
d. Income of households after deduction of direct taxes and addition of transfer payments
42) Which of the following is not a characteristic of tax?
a. Has quid pro quo
b. Is a compulsory payment
c. Is not imposed as penalty
d. Involves sacrifice on part of the payer
43) Which of the following statements applies to principle of functional finance?
a. Budget deficits are uneconomical at all times and should be avoided
b. Social objectives should be the primary focus of fiscal policy
c. Government spending should be restricted to traditional function
d. Every public expenditure is inflationary
44) Automatic stabilizer will be effective in case of which of the following situations?
a. Recession
b. Cost-push inflation
c. Demand pull inflation
d. Hyper inflation
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45) Which of the following is not a characteristics of capital expenditure?
a. Is in the form of consumption
b. Gives right to capital assets
c. Usually funded through public debt
d. Is in the form of investment
46) The law of Increasing Public Activity was developed by---
a. Richard Musgrave
b. Hugh Dalton
c. Adolf Wagner
d. Alan T. Peacock
48) Goods that are provided by both the public and private sectors are known as
a. Public goods
b. Merit goods
c. Social goods
d. Demerit goods
49) A dead weight is
a. self liquidating
b. unproductive
c. External loans incurred by the government
d. not burdensome to the economy
50) Fiscal policy does not directly deal with
a. Taxation
b. Public debt
c. Money supply
d. public expenditure
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SY BAF - IT IN ACCOUNTANCY – SEM-III – MCQ SMAPLE 50 QUESTIONS
1. The basic unit used in computer data storage is called a _____________. A. Byte
B. Bit C. MB D. KB
2. In 3rd generation of computers speed was measured in _______________ seconds. A. Micro
B. Nano C. Milli
D. Pico
3. Software which are readily available in the market, are called as _______________ software.
A. System B. Application C. General-Purpose
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D. Online
4. ____________________ must be refreshed several times each second to prevent data loss. A. RAM
B. ROM C. DRAM D. SRAM
5. ______________ is single user and single- tasking operating system.
A. DOS B. UNIX
C. Windows D. Linux
6. Ground based Microwaves are called as _____________________ Microwaves. A. Satellite B. Terrestrial
C. Radio D. Default
7. In star topology, failure of ________________ will bring down entire network. A. Server
B. Cable C. Node
D. Server or Cable
8. In _______________ topology alternative paths are available if direct link between two nodes is
down or dysfunctional. A. Star B. Bus
C. Ring D. Mesh
9. Which of the following is unbounded media? A. Terrestrial Microwaves B. Coaxial
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C. Satellite D. Infrared
10. STP stands for __________________ Twisted Pair.
A. Straight B. Simple C. Shielded
D. Server
11. In Co-axial cable data is transmitted with the help of _______________________.
A. Electric Current B. Light Beam
C. Magnetic Wave D. Packet
12. Speed of a CPU is known as _____________ speed is measured in ________________. A. Watch, MHz
B. Watch, GHz C. Clock, GHz D. Clock, MHz
13. _______________________ and ________________________ tools are used to move data between
disks or storage sub systems. A. Migration, Archiving
B. Configuration, Archiving C. Migration, Configuration D. Archiving, Reduction
14. What is the meaning of ‘DATA’? A. A table that contains list of users and password
B. List of software C. A piece of information
D. digital spreadsheets
15. From where a user communicates with the operating system in a computer?
A. Interface B. Multimedia
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C. Graphics D. Bluetooth
16. Which would you choose to save a document with a new name? A. Press Ctrl+S
B. Click File, Save C. Click Tools, Options, Save
D. Click File, Save As
17. Which enables you to move directly to specific location in a document? A. Subdocuments
B. Bookmarks
C. Cross-references
D. Outlines
18. What are inserted as cross-reference in Word? A. Placeholders
B. Bookmarks
C. Objects
D. Word fields
19. Which can be used for quick access to commonly used commands and tools?
A. Status bar
B. Tool bar
C. Menu bar
D. Title bar
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20. Which simplifies the process of formatting text if the same formatting is required in more than one location?
A. Auto Text
B. Format Painter
C. Font dialog box
D. Web layout
21. Background color or effects applied on a document is not visible in
A. Web layout view
B. Print Layout view
C. Reading View
D. Print Preview
22. Which of the following is not a font style?
A. Bold
B. Italics
C. Regular
D. Superscript
23. Which tab is not available on left panel when you open a presentation?
A. Outline
B. Slides
C. Notes
D. Animation
24. Which of the following pane is not available in Task Pane?
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A. Getting Started
B. Clip Art
C. Word Art
D. Search Results
25. Which tool you will use to join some cells and place the content at the middle of joined cell? A) From Format Cells dialog box click on Merge Cells check box B) From Format Cells dialog box select the Centred alignment
C) From Format Cells dialog box choose Merge and centre check box D) Click on Merge and centre tool on formatting toolbar
26. Each excel file is a workbook that contains different sheets. Which of the following cannot be
a sheet in workbook? A. Work sheet
B. chart sheet
C. module sheet
D. data sheet
27. Which of the following is a correct format of Email address?
A. name@website@info
C. www.nameofebsite.com
D. name.website.com
28. ___ is used to store the data within the documents on the server.
A. XML B. HTML C. DHTML D. CGI
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29. Commercial transactions done with the help of handheld devices like smartphones is called_____.
A. M commerce B. E- commerce
C. E business D. Sales
30. In online stored value systems , cards that have embedded chips that stores personal information are called_______.
A. Debit Card B. Smart Card
C. Credit Card D. Ideal Card
31. Dimension of e-commerce that enables commerce across National boundaries is called_____. A. Interactivity
B. Global Reach C. Richness
D. Ubiquity
32. ____________________is a barrier between external and internal networks. A. Encryption B. Decryption
C. Firewall D. Authentication
33. Which protocol permits users to transfers files from server to their client computer and vice
versa? A. HTTP B. SMTP
C. IMAP D. FTP
34. What is the name of the card which can be used by the buyers during the time of purchase
and in which the amount will be immediately debited from the buyers account? A. E-distributer B. Debit card
C. Credit card D. Power card
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35. Encryption is a way of _____________________________.
A. Securing Information on a network B. Securing Viruses C. Deleting applications
D. Hacking Passwords
36. A computer can be protected from the risk of unwanted emails by?
A. Using anti-virus software B. Using anti-spam software
C. Never using free email sites. D. Using a firewall
37. What is an IP address?
A. A unique string of numbers that identifies each computer on a network. B. An address in India
C. An address used to find a printer D. An address in UK
38. Unsolicited e-mail is called what? A. Junk mail
B. spam C. Extra mail
D. No mail
39. HTML Hypertext Mark-up Language _______________________.
A. tells web browser how to make a page look.
B. is a programming language used by hackers. C. is used to make websites secure. D. only the text of a website.
40. Digital Signature falls under which act of legal recognition? A. Company Act
B. IT Act 2000 C. Industrial Act D. RBI Act
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41. DNS stands for ____________________. A. Domain Name System B. Direct Naming Server
C. Domain Numbering System D. Direct Numbering system.
42. ______________ technology was used in the 2nd generation of computers.
A. I.C. B. L.S.I.C C. Transistors
D. Vacuum Tubes
43. Which of the following is not a medium of data transmission? A. Fiber Optic Cable B. Satellite
C. Electric Wire D. Twisted Pair Cable
44. In LAN main computer is called as _______________ A. Master Computer
B. File Server C. Node D. Work Station
45. Which enables us to send the same letter to different persons?
A. macros
B. template
C. mail merge
D. Format
46. What are inserted as cross-reference in Word?
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A. Placeholders
B. Bookmarks
C. Objects
D. Word fields
47. Which of the following statement is false?
A. If you choose to select from one of the pre-made slide layouts, you can change the positioning
B. If you choose to select from the pre-made slide layouts, you cannot delete the objects in the
layout. C. Blank Slide is at the top of the 'Content Layouts' area in the Slide Layout panel.
D. Blank Slide is at the top
48. You can use the formula palette to _____________________________.
A. format cells containing numbers B. create and edit formula containing functions C. enter assumptions data
D. copy a range of cells
49. Tab scroll buttons are place on Excel screen _______________________________. A. towards the bottom right corner
B. towards the bottom left corner C. towards the top right corner
D. towards the top left corner
50. Which of the cell pointer indicates that you can fill series? A. Doctor’s symbol (Big Plus) B. small thin plus icon
C. Mouse Pointer with anchor at the tip D. Star Sign
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SY BAF - BUSINESS LAW – SEM-III – MCQ SMAPLE 50 QUESTIONS
1. Indian partnership Act was passed in the year _______
a. 1932
b. 1933
c. 1950
d. 1947
2. In a partnership firm every partner is the principal as well as the ________
A. Partner
B. Manager
C. Agent
D. Director
3. The liability of the shareholders in the public limited joint stock company
is ________
A. Limited
B. Collectively
C. Severally
D. Individually
4. The minimum number of Directors in a public company are ________
A. 2
B. 1
C. 3
D. 5
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5. The co-operative societies Act was passed in the year ________
A. 1912
B. 1947
C. 1950
D. 1990
6. Partnership should not be created by ___________
A. Contract
B. status
C. Agreement
D. Terms
7. Where no provision is made by contract between the partners for the duration of their partnership, or for the determination of their partnership, the partnership is ________________________
A. Particular Partnership
B. Partnership at will
C. Specific Partnership
D. Formal Partnership
8. Partners are bound to carry on the business of the firm to the greatest
_________________
A. common advantage
B. Common loss
C. Common Profit
D. Common benefits
9. The mutual rights and duties of the partners of a firm may be determined by contract between the partners, and such contract may be expressed or may be
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A. Implied
B. Express
C. Legal
D. Illegal
10.Every partner is bound to attend to ____ his duties in the conduct of the business
A. Responsible
B. Carefully
C. Diligently
D. Negligently
11. Every partner has a right to have access to and to inspect and copy any of the ___________ of the firm
A. Constitution
B. Diary
C. Report
D. books
12. . A partner has authority, in an emergency, to do all such acts for the purpose of
protecting the firm from ______________
A. Profit
B. Loss
C. Fraud
D. Mistake
13. Section 28 deals with ______________
A. Going out
B. Holding in
C. Holding out
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D. Out Going Partner
14. Such minor has a right to such share of the property and of the profits of the firm as may be agreed upon, and he may have access to and inspect and copy any of the _____________of the
firm
A. accounts
B. book
C. report
D. minutes
15. If minor fails to give such notice, he shall become a partner in the firm on the expiry of the
said _______________
A. 6 months
B. 8 Months
C. 12 Months
D. 15 months
16. A partner may not be expelled from a firm by any majority of the partners, save in the exercise in ______________of powers conferred by contract between the partners
A. good permission
B. good faith
C. good trust
D. good expression
17. Karta of a Joint Hindu Family firm has ___ liability
a. Unlimited
b. Limited
c. No
d. Many
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18. Every Joint Hindu Family firm is created by ___
a. Agreement
b. Operation of law
c. Contract
d. Death
19. Right to demand accounts in Joint Hindu family Firm is only allowed to
a. Member
b. Co parceners
c. Karta
d. Dharta
20. The term ____ include every trade, profession and occupation as per the Indian Partnership Act
a. Service b. Profit c. Trading
d. Business
21. Each partner plays the role of __ as well as ___ a. Agent , worker b. Karta, Co parceners
c. Agent, Principal d. Agent , Principle
22. Partners cannot sue the third party if the firm is __ a. in India
b. registered c. incorporated d. not registered
23. Property of the firm deemed to include
a. Property of the creditor b. Personal property of partner c. Goodwill of the firm
d. Property of the minor 24. Section _____ of the Partnership Act states about who can be partner.
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a. 11 b. 12
c. 13 d. 14
25. __ is not open to public inspection of Partnership Firm
a. Partnership deed
b. Constitution of India c. Name of Director of company d. Name of the CEO
26. What are the general duties of an Occupier?
A. Maintenance of a plant of work in factory are safe, with risks to health. B. Specifying the area C. Specifying the area Ensure safety and absence of risks to health in, use, handling,
storage and transport of articles and substances. D. Defining the local mean time ordinarily deserved therein
27. As per the factories act, after how many years should the factory premises be painted and refurbished?
a. 5 years b. 2 years c. 10 years
d. Annually
28. Section 2(g) under the act defines _______ a. Factory b. Manufacturing process
c. Worker d. Occupants
29. If there are ____ numbers of employees, then the employer has to provide a canteen. a. 250
b. 510 c. 320 d. 100
30. Minimum Number of Partner in LLP
a. 1
b. 2
c. 3
d. 4
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31. A Person shall cease to be a partner of LLP
a. On receiving advance from LLP
b. On giving advance to LLP
c. On his death
d. After completing age of 60 years
32. A partner can retire.
a. with consent of all partners.
b. partners consent not required.
c. Partners can not retire in the firm.
d. With the permission of Civil Court.
33. A incoming partner.
a. is liable for all debts of firm.
b. is not liable for debts of the firm.
c. is not liable for debts of the firm entered prior to his admission unless agreed upon.
d. is liable as per contract Act.
34. A nominal partner.
a. Unlimited liability
b. is liable to third party
c. share profits and loss
d. illegal person
35. After the dissolution of firm goodwill of firm.
a. cannot do anything
b. can be changed
c. can be sold
d. can not be sold
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36. Consequence of non – registration of partnership firm.
a. cannot file a suit
b. artificial legal person
c. Local authority
d. it is crime
37. Minimum Number of Partner in LLP
a. 1
b. 2
c. 3
d. 4
38. A Person shall cease to be a partner of LLP
a. On receiving advance from LLP
b. On giving advance to LLP
c. On his death
d. After completing age of 60 years
39. If LLP is unable to pay off the debt, it can be would up by the _______ .
a. Agent
b. Liquidator
c. notification
d. tribunal
40. A partner can retire.
a. with consent of all partners.
b. partners consent not required.
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c. Partners can not retire in the firm.
d. With the permission of Civil Court.
41. Whenever a LLP become insolvent.
a. legal person
b. continues to be a partner.
c. depends on the will of the partner.
d. ceases to be a LLP..
42. At least one designated partner must be
a. A resident of India
b. Resident of a foreign country
c. Not required Indian
d. Artificial person
43. Voluntary winding up LLP requires.
a. Ordinary resolution
b. Special resolution
c. no resolution
d. Government permission
44. Maximum number of partners in a LLP can be: (a) 100
(b) 200
(c) 50
(d) Unlimited
45. For reservation of name, e-Form is required
(a) E-Form 1
(b) E-Form A
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(c) E-Form B
(d) E-Form 2
46. Common seal is mandatory for
(a) Company
(b) LLP
(c) Both the above
(d) None of the above
47. Ratification means
a. an act provided by LLP done by a partner with consent
b. an act approved by LLP done by a partner without authority
c. an act done by a partner with the consent of government
d. an illegal act done by a partner
48. Which one of the following is an unincorporated organisation?
a. General partnership.
b. Limited liability partnership c. Public limited company d. Private limited company.
49. . A partner who is entitled to a share of the profits from a partnership is known as: a. A limited liability partner. b. Salaried partner
c An equity partner d. An equity partner
50. Limited liability partnerships were introduced by which Act of Parliament? a. Limited Partnership Act 1907
b. Limited Liability Partnership Act 2000 c. Partnership Act 2000 d. Companies Act 2006.
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SY BAF -COST ACCOUNTING – SEM-III – MCQ SMAPLE 50 QUESTIONS
Sr. Questions 1. The amount of expenditure incurred on, or attributable to, a specified thing or
an activity or cost unit is known as _______. A] Product B] Cost
C] Batch D) Unit
2. ________ cost represents the increase or decrease in total cost which occurs
with change in output.
A] Conversion cost B] Marginal cost C] Explicit cost
D) Direct Cost 3. _______ is applied where production is carried out as per specific order and
customer specifications. A] Batch costing
B] Job costing C] Contract costing D) All Costing
4. The branch of accounting dealing with the classification, recording, allocation, summarization and reporting of current and prospective costs is known as
_______. A] Cost Accountancy B] Costing
C] Cost Accounting D) Financial Accounting
5. A unit of quantity of product, service or time, in relation to which cost may be
ascertained or expressed is known as _______. A] Cost Centre
B] Cost Sheet C] Cost Unit D) Profit Centre
6. The cost unit for the Gas Industry is ______. A] Per gallon
B] Per tonne C] Cubic Meter D) Per litre
7. A profit centre is a centre (a) Where the manager has the responsibility of generating and maximising
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profits (b) Where losses are ascertained
(c) Where profits are imagined (d) Which manages cost
Responsibility Centre can be categorised into: (a) Cost Centres only (b) Profit Centres only
(c) Investment Centres only (d) Cost Centres, Profit Centres and Investment Centres
8. Element/s of Cost of a product are:
(a) Material only (b) Labour only
(c) Expenses only (d) Material, Labour and expenses
9. Calculate the prime cost from the following information: Direct material purchased: Rs. 1,00,000
Direct material consumed: Rs. 90,000 Direct labour: Rs. 60,000 Direct expenses: Rs. 20,000
Manufacturing overheads: Rs. 30,000 (a) Rs. 1,80,000 (b) Rs. 2,00,000
(c) Rs. 1,70,000 (d) Rs. 2,10,000
34. Total cost of a product: Rs. 10,000 Profit: 25% on Selling Price Profit is:
(a) Rs. 2,500 (b) Rs. 3,000 (c) Rs. 3,333
(d) Rs. 2,000 10. In how many ways cost classification can be done?
A) Three ways
B) Two ways
C) Four ways
D) Many ways
11. A total of all the direct costs is known as
A) Cost of production
B) Cost of sales
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C) Prime cost
D) Works cost
12. Material, Labour and Expenses are the three important _______ of cost
. A] Methods
B] Elements
C] Technique
D] Processes
13. ______ expenses are also called as chargeable expenses.
A] Partly direct and partly indirect
B] Indirect
C] Direct
D]Aggregate expenses
14. Reconciliation is usually done between a. Gross profit and net profit b. Previous year’s profit and Current year’s profit
c. Costing profit and Financial accounts profit d. Current year profit with next year provisions
15. In Reconciliation Statement, Incomes shown only in Financial Accounts are a. added to financial profit b. deducted from financial profit
c. ignored d. deducted from costing profit
16. In Reconciliation Statement, Depreciation Undercharged in Financial Accounts
a. added to financial profit b. deducted from financial profit
c. ignored d. deducted from costing pr6fit
17. In Reconciliation Statement, Closing Stock Undervalued in Financial Accounts
is a. added to costing profit b. deducted from financial profit
c. added to financial loss d. deducted from costing profit
18. In Reconciliation Statement, Overheads Under-Recovered in Cost Accounts are a. added to costing profit b. deducted from financial profit
c. added to financial loss d. deducted from costing profit
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19. Premium on issue of shares is a. Shown in costing profit and loss A/c
b. Shown in financial profit and loss A/c c. Ignored
d. Assets Side 20. Donations paid reduces _____ profit.
a. financial profit
b. Ignored in costing c. costing profit d. assets
21. Excess of overheads in costing as compared to profit and loss A/c is a. Over absorption of overheads
b. Under absorption of overheads c. Assets d. Liabilities
22. Costing Profit is Rs.2,18,000; Overvaluation of Opening Stock in costing Rs.4,500; Over absorption of office overheads in costing Rs.35,000; Bad Debts
Recovered in financial accounts Rs.12,000; Financial Profit is ? a. Rs.2,70,000 b. Rs.2,22,000
c. Rs.2,30,500 d. Rs.2,55,000
23. Profit as per Financial Records Rs.1,45,000; Overvaluation of Indirect Wages
Rs.12,000; Overvaluation of Opening Stock of Finished Goods in Cost Accounts Rs.5,000; Excess Depreciation charged in Financial Accounts Rs.3,500; Under
absorption of Selling Overheads Rs.7,500; Reconciliation Statement will show a. Profit as per Cost Accounts Rs.1,39,000 b. Profit as per Cost Accounts Rs.1,50,000
c. Profit as per Cost Accounts Rs.1,51,000 d. Profit as per Cost Accounts Rs.1,60,000
24. Profits as per Financial Records Rs.1,45,000; Overvaluation of Opening Stock
in Finished Goods in Cost Accounts Rs.5,000; Reconciliation Statement show a. Profit as per Cost Records Rs.1,50,000
b. Profit as per Cost Records Rs.1,40,000 c. Profit as per Cost Records Rs.1,60,000 d. Profit as per Cost Records Rs.1,65,000
25. Profit as per Cost Records Rs.2,00,000; Depreciation under recovered in Cost Accounts Rs.30,000; Reconciliation Statement show
a. Profit as per Financial Accounts Rs.1,70,000 b. Profit as per Financial Accounts Rs.2,30,000 c. Profit as per Financial Accounts Rs.2,00,000
d. Profit as per Financial Accounts Rs.1,50,000 26. Damages awarded by court appear only in _________ accounts.
a. Financial
36
b. Cost c. Assets
d. Liabilities 27. Under ________ system, there is no need of reconciliation of cost and financial
accounts. a. Integrated b. Non-Integrated
c. ABC d. Operating
28. Process costing is applied when
(a) Small number of different products are manufactured (b) Large number of different products are manufactured
(c) Large number of identical products are manufactured (d) Small number of customised made - to – order products are manufactured
29. Abnormal Gains are equal to
(a) Actual Output-Normal Output (b) Normal Output - Actual Output (c) Actual Output- Input (d) Input-Actual Output
30. Which of the given units can never become part of first department of Cost of Production Report?
(a)Units received from preceding department
(b)Units transferred to subsequent department (c)Loss Units (d) Units still in process
31. Wastage of a raw material during a manufacturing process is 20% of input
quality. What input quantity of raw material is required per kg of output? (a) 0.8 kg (b) 1.2 kg (c) 1.25 kg (d) 1.33 kg
32. Details of the process for the last period are as follows: Put into process 5,000 kg Material ₹ 2,500
Labour ₹ 700
Production Overheads 200% of labour
Normal losses are 10% of input in the process. The output for the period was 4,200 kg from the process. There was no opening and closing work-in-process. What were the units of abnormal loss?
(a) 500 units (b) 300 units (c) 200 units (d) 100 units
33. A Petroleum company assigns certain value based on the calorific value to each petroleum product and these values become the basis of apportionment of joint cost
among petroleum products. This is an example of (a) Average Unit Cost Method
37
(b) Physical Unit Method (c) Survey method
(d) By Product 34. For the purpose of a locating joint costs to joint products, the sale price at point
of sale, reduced by costs to complete after split-off, is assumed to be equal to - (a) Joint Costs
(b) Total Costs (c) Net Sales Value at split-off (d) Sale price less normal profit margin at point of sale
35. Three products A, B and C are obtained from a process. The following details are provided-
Particulars A B C Sales (kg.) 500 400
100 Selling Price per kg. 25 22
37 Joint costs are 90,000 The amount of joint costs allocated to product B on Sales Value method will be (a) ₹ 45,000 (b) ₹31,630 (c) ₹25,720 (d) ₹13,320
36. Realizable value of abnormal gain is debited to _______ account.
a. Process b. abnormal gains
c. Costing P & L d. Contract A/C
37. The sale value of units of abnormal loss is credited to the ______ account.
a. abnormal loss b. costing profit & loss c. Normal Loss
d. Abnormal Gain 38. If Contract is less than 80% completed than profit taken to profit and loss
account is ……………….
1/3rd of Notional Profit
2/3rd of Notional Profit
entire profit
Nil
39. Material Supplied by contractee …………..
(a) is debited to contract account
38
(b) is ignored in Contract account
(c) is credited in contract account
(d) is debited to the Contractee Account
40. If entire Contract is complete, the value of Profit transfer to P/L account will be …………….
(a) 1/3rd of Notional Profit
(b) 2/3rd of Notional Profit
(c) entire profit
(d) Nil 41. The degree of completion of work is determined by comparing the work with
…………..
(a) Contract Price
(b) WIP
(c) Cash received from contract
(d) Retention Money 42. TDS A/c is shown as a part of the …………. Of the contractor
(a) Current Assets
(b) Investments
(c) Current Liabilities
(d) Fixed Assets
43. Cash Received is Rs. 4,80,000 being 80% of work Certified, Value of Work certified is Rs. ………….
(a) 6,00,000
(b) 5,000,000
(c) 50000
(d) 2,00,000
44. Contract Price is Rs. 5,00,000, Work Certified 60%, payment received from
contractee is 80% than payment received from contractee is ………….
(a) 2,40,000
(b) 3,60,000
39
(c) 5,00,000
(d) 4,00,000
45. In Contract Costing ................. is valued in terms of cost
(a) Work Certified
(b) Work Uncertified
(c) WIP
(d) Retention Money
46. Contract costing is usually applicable in ………..
(a) Constructional Work
(b) Textile mills
(c) Cement industry
(d) Sugar Mill
47. ................. method of costing used to find out the cost of each contract
(a) Contract Costing
(b) Process Costing
(c) Job Costing
(d) Batch Costing
48. If contract is less than ……………… % complete no profit is transferred
(a) 25
(b) 30
(c) 45
(d) 50
49. ________ is concerned with ascertainment of cost. A] Cost Accountancy
B] Costing C] Cost Accounting D) Financial Accounting
50. ________ is concerned with formulation and / or application of principles, methods and techniques of costing.
A] Financial Accountancy
40
B] Costing C] Cost Accounting
D) Batch Costing
SY BAF – FINANCIAL MARKET OPERATION SEM-III – MCQ SMAPLE 50 QUESTIONS
Sr. Questions
1. Every financial market has the following characteristic:
A) It determines the level of interest rates.
B) It allows common stock to be traded.
C) It allows loans to be made.
D) It channels funds from lenders-savers to borrowers-spenders.
2. Which of the following can be described as involving direct finance?
A) A corporation’s stock is traded in an over-the-counter market.
B) People buy shares in a mutual fund.
C) A pension fund manager buys commercial paper in the secondary market.
D) borrowing money from a friend
41
3. The ultimate source of money in India is _____________.
[a] Commercial banks
[b] Indian companies
[c] RBI
[d] IMF
4. The organized financial system includes _____________.
[a] Commercial banks
[b] Indigenous banks
[c] Chit funds
[d] Betting and Gambling
5. The government regulates financial markets for three main reasons:
A) to ensure soundness of the financial system, to improve control of monetary
policy, and to increase the information available to investors.
B) to improve control of monetary policy, to ensure that financial intermediaries
earn a normal rate of return, and to increase the information available to
investors.
C) to ensure that financial intermediaries do not earn more than the normal
rate of
return, to ensure soundness of the financial system, and to improve control of
monetary policy.
D) to ensure soundness of financial intermediaries, to increase the information
available to investors, and to prevent financial intermediaries from earning less
than the normal rate of return.
6. What is the meaning of “financing” in the financial market?
[a] Advising an organization to raise charity funds
[b] Investing in the securities market
42
[c] Sourcing funds
[d] Converting the assets into cash
7. Financial institutions expect that
A) moral hazard will occur, as the least desirable credit risks will be the ones
most
likely to seek out loans.
B) opportunistic behavior will occur, as the least desirable credit risks will be the
ones most likely to seek out loans.
C) borrowers will commit moral hazard by taking on too much risk, and this is
what drives financial institutions to take steps to limit moral hazard.
D)borrowers will not recollect
8. Which of the following are securities?
A) Fixed deposits
B) A share of Texaco common stock
C)Bank Loan
D) Forward Contract
9. The unorganized financial system comprises of _____________.
[a] Money lenders
[b] Commercial banks
[c] LIC
[d] Stock market
10. A financial market in which short-term papers or bills are brought and sold is known as
[a] Bill market
[b] Commercial market
[c] Capital market
43
[d] Call market
11. When the market's required rate of return for a particular bond is much less than its coupon rate, the bond is selling at
[a] Premium
[b] Discount
[c] Face value
[d] market cap
12. Development financial institutions have been established to cater to
[a] Short-term financial needs
[b] Medium-term financial needs
[c] Long-term financial needs
[d] they do not provide any funds
13. Services are offered by finance companies are called as
a. Financial Services
b. social service
c. Acceptance
d. Depositary Service
14. Which of the following statements about financial markets and securities are true?
A) Few common stocks are traded over-the-counter, although the over-the-counter
markets have grown in recent years.
B) A corporation acquires new funds only when its securities are sold in the
primary market.
C) Capital market securities are usually more widely traded than longer term
securities and so tend to be more liquid.
D) RBI is the regulator of the financial markets
44
15. Which of the following instruments is not traded in a money market?
A) Banker’s acceptances
B) Treasury Bills
C) Eurodollars
d) Residential mortgages
16. Bonds that are sold in a foreign country and are denominated in that country’s
currency are known as
A) foreign bonds.
B) Eurobonds.
C) Eurocurrencies.
D) Eurodollars.
17. Bonds that are sold in a foreign country and are denominated in a currency other than
that of the country in which they are sold are known as
A) foreign bonds.
B) Eurobonds.
C) Eurocurrencies.
D) Eurodollars.
18. Adverse selection is a problem associated with equity and debt contracts arising from
A) the lender’s relative lack of information about the borrower’s potential returns
and risks of his investment activities.
B) the lender’s inability to legally require sufficient collateral to cover a 100
percent loss if the borrower defaults.
C) the borrower’s lack of incentive to seek a loan for highly risky investments.
D) the borrower’s disinterest
45
19. Type of market in which securities with less than one year maturity are traded, is classified as
[a] money market
[b] capital market
[c] transaction market
[d] global market
20. In order to protect the interests of investors and regulate the working of stock exchanges, the Government in 1988 set up the
[a] SEBI
[b] SIDBI
[c] RBI
[d] Bank of India
21. If an investor may have to sell a bond prior to maturity and interest rates have risen since the bond was purchased, the investor is exposed to
[a] The coupon effect
[b] The interest rate
[c] At maturity
[d] Repo rate
22. Interest rates and bond prices
[a] Move in the same direction
[b] Move in opposite direction
[c] depend on bank repo rate
[d] are related to inflation
23. Which of the following TERM does not belong to the stock exchange?
(A) NAV
(B) NSE
(C) IPO
46
(D) KPO
24. Which of the following cities does NOT have a formal stock
exchange?
A Frankfurt
B London
C Monte Carlo
D BSE
25. Break-even of a Put option occurs when spot price is equal to
A.Strike price + Premium
B.Strike Price - Premium
C.Premium
D.fair price
26. To regulate scam in Indian capital market, which of the following body has
regulatory power:
a) SEBI
b) RBI
c) SBI
d)UTI
27. SEBI is a regulator of (a) capital market.
(b) money market (c) commodity market. (d) overseas market
28. ______ refers to the market where borrowers and lenders exchange short-term
funds to solve their liquidity needs.
A. Money market
B. Capital Market C. Stock Exchange D. Gold
29. The __ refers to the markets for those financial instruments /claims/obligations
47
that are commonly and readily transferable by sale.
A. Gold B. Silver C. MCX
D. Securities market. 30. The __ is a market for old securities, i.e., those which have been already issued
and listed.
A. Primary Market
B. Gold Market C. Gold Bullion D. Stock exchange.
31. The SEBI has introduced a new facility __ route to applying for IPOs from September 2008 onwards.
A. ASBA B. SCSB
C. QIB D. SCSC
32. A _________is a tradable instrument issued by central government
A. Government Security
B. Corporates Security C. Shares D. Mutual funds
33. Government Security is backed by __________
A. SEBI
B. State Government C. Corporates
D. RBI 34. ________Facilities buying & Selling of financial assets, claims & Services
A. Financial Market B. APMC C. BPMS
D. Capital Market 35. Funds borrowed & lent in money market are for ___________ term
A. Long B. Short
C. Medium D. Permanent
36. ________rate is rate issued by RBI
A. Repo
48
B. Reverse Repo Rate C. Interest Rate
D. Dividend Rate 37. New Shares & Debentures are traded in ____ Market
A. Primary B. Secondary
C. Stock D. Money
38. Debt market Consist of:
A. Debentures B. Bonds
C. Shares D. Debentures & Bonds
39. IPO Stands for
A. Initial Public Offer
B. Industrial Public Offer
C. Industrial Policy Offer
D. Initial Policy Offer
40. The Purchase rate which is also known as bank official rate is ______ rate
A. Repo
B. Credit C. Interest D. Debit
41. _______ was the first Indian commercial bank to take up the activities in 1972
a. HDFC b. ICICI c. SBI
d. TJSB 42. 1980’s there were ______ merchant bankers belonging to three major segments
viz., commercials banks, all India financial institutions, and private firms.
a. 30
b. 31 c. 32 d. 33
43. Mutual Funds is regulated by
a. SEBI
b. RBI c. IRDA
d. State Government
49
44. Revenue A/C should disclose Scheme wise
a. Income b. Expenses c. Surplus
d. Deficit 45. Short term bond fund are
a. No Risk Funds b. High risk Funds
c. Low risk funds d. Moderate risk funds
46. Close ended fund has stipulated .
a. No load fund
b. Debt Securities c. Maturity Period d. Exit load
47. A mutual fund investment are guided by the
a. Unit
b. Board of Trustees
c. AMC
d. Investment Objectives 48. UTI was the only mutual fund for the period
a. 1965 to 1990
b. 1984 to 1988
c. 1964 to 1992
d. 1963 to 1988 49. SBI Set up its Merchant banking in India from
a. 1970
b. 1972
c. 1973
d. 1974 50. _______was First financial institute to start merchant Banking
a. SBI
b. HDFC
c. RBI
d. ICICI
SY BAF - FINANCIAL ACCOUNTING -III – SEM-III – MCQ SMAPLE 50 QUESTIONS
50
1) The essential elements of a firm are : a) Unequal
share of P & L
b) No
Agreement
c) Minimum two partners
d) Minimum
three partners
2) Under Fixed Capital Method profits & losses are shared by the partners in a) Capital
ratio b) Equal
ratio c) Agreed
ratio d) Unequal
Ratio
3) In absence of any agreement partners are entitled to receive interest on loan at
a) 15% b) 10% c) 6% d) 8%
4) Bad debts is a _____
a) profit b) loss c) gross loss d) Net Profit
5) Raveena & Kareena started business on 1st January, 2019 with capital of Rs. 4,00,000 and
Rs. 3,00,000 respectively. There is no withdrawal or addition of capital during the year. Calculate Interest on capital @ 10% p.a. Accounts are closed on 31st December.
a) Raveena Rs. 40,000,
KareenaRs. 30,000
b) Raveena Rs. 1,800,
KareenaRs. 40,000
c) Raveena Rs. 35,000,
KareenaRs. 35,000
d) Raveena Rs. 35,000,
KareenaRs. 10,500
6) X and Y are parnters in a firm. X is to get a commission of 10% of Net Profit before
charging any commission. Y is to get commission of 10% on Net Profit after charging all commission. Net Profit before charging any commission was Rs. 1,21,000. Find out the commission of A and B.
a) A Rs.12,100, B Rs. 9,900
b) A Rs.12,100, B Rs. 10,890
c) A Rs. 12,100, B Rs. 1,10,000
d) A Rs. 10,500, B Rs.
15,420
7) A and B started business on 1st January, 2019 with Capital of Rs. 60,000 and Rs. 40,000
respectively during the year A introduced Rs. 10,000 as additional Capital on 1st July 2019. Interest on Capital is 10%. Interest on Capital will be
a) A Rs.6,500, B ₹ 4,000
b) A Rs.3,000, B Rs. 2,000
c) A Rs.4,000 B Rs. 6,000
d) A Rs.2,000, B Rs. 3,000
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8. In the absence of any provision in the deed profits and Losses are shared by partners. a) in Capital
ratio
b) in Loan ratio c) equally d) In profit
sharing
9. Income received in advance is shown on _____ side of Balance Sheet.
a) liability b) Credit c) Debit d) Asset
10. Average rate
a. is the exchange rate at the balance sheet date b. is the mean of the exchange rates in force during a period
c. is the ratio for exchange of two currencies d. is the rate at which an asset could be exchanged between knowledgeable, willing
parties in an arm's length transaction
11.Closing rate
a. is the exchange rate at the balance sheet date b. is the mean of the exchange rates in force during a period c. is the ratio for exchange of two currencies
d. is the rate at which an asset could be exchanged between knowledgeable, willing parties in an arm's length transaction
12.Currency other than the reporting currency of an enterprise a. Non-Reporting currency
b. U.S. Dollars c. Foreign Currency d. Indian Rupees
13. X ltd imported goods worth $10,000 on 1st April 2019. Payment of $10,000 was made on
1st june 2019. On 1 April 2019 $1=₹65 , 1st june 2019 $1=₹67. On 1st june 2019 x ltd will record ______
a) Foreign exchange fluctuation (Loss) ₹20,000
b) Foreign exchange fluctuation (Gain) ₹20,000
c) Foreign exchange fluctuation (Loss) ₹25,000
d) Foreign exchange fluctuation (Gain) ₹25,000
14. Which of the following statements is false? a. At each balance sheet date, foreign currency monetary items should be reported
using the closing rate
b. At each balance sheet date, non-monetary items which are carried in terms of historical cost denominated in a foreign currency should be reported using the
exchange rate at the date of the transaction c. At each balance sheet date, non-monetary items, which are carried at fair value
52
denominated in a foreign currency should be reported using the exchange rates that existed when the values were determined
d. At each balance sheet date, foreign currency monetary items should be reported using the average rate during the year
15. Following is not an example of a monetary item.
a. Cash b. Receivables
c. Payables d. Fixed assets
16. X ltd imported goods worth $15,000 on 1st April 2019. Payment of $15,000 was made on 1st june 2019. On 1 April 2019 $1=₹65 , 1st june 2019 $1=₹67. On 1st june 2019 x ltd will
record ______
a) Foreign exchange fluctuation (Loss) ₹30,000
b) Foreign exchange fluctuation (Gain) ₹30,000
c) Foreign exchange fluctuation (Loss) ₹25,000
d) Foreign exchange fluctuation (Gain) ₹25,000
17. The mean of the exchange rates in force during a period is known as
a. Average Rate b. Closing Rate
c. Reporting Rate
d. Fair Rate
18. Reporting currency is the currency used
a. In recording the financial
transactions
b. In presenting the financial
statements c. In settling the financial transactions
d. In preparing Trial Balance
19.X ltd exported goods worth $10,000 on 1st April 2019. Payment of $6,000 was received on 1st june 2019. On 1 April 2019 $1=₹65 , 1st june 2019 $1=₹67. On 1st june 2019 x ltd
will record ______
a) Foreign exchange fluctuation (Loss) ₹12,000
53
b) Foreign exchange fluctuation (Gain) ₹12,000
c) Foreign exchange fluctuation (Loss) ₹20,000
d) Foreign exchange fluctuation (Gain) ₹20,000
20. When there is a realization of export, the date of translation of foreign currency is
a) Date of export of goods.
b) Date of Receipt of Amount.
c) Date of Receipt of Order.
d) Date of dispatch of Goods.
21. If there are four liabilities e.g. creditors ₹ 10,000 Bills Payable ₹ 5,000, outstanding expenses ₹ 10,000, other loan ₹ 5,000 and cash available is ₹ 15,000
(a) First pay ₹ 10,000 to creditors and ₹ 5,000 to Bills Payable.
( b) First pay ₹ 10,000 to outstanding expenses and ₹ 5,000 to other loan
(c) Pay ₹ 5,000, ₹ 2,500, ₹ 5,000, ₹ 2,500 in Due Ratio 2 : 1 : 2 : 1.
(d) First pay ₹ 10,000 to creditors and ₹ 5,000 to other loan
22. Unit value we multiply with each one's (a) Profit Sharing Ratio
b) Capital Ratio
c) Gain Ratio
d) Sacrifices Ratio
23. If Bank loan ₹ 50,000; Bank overdraft is ₹ 25,000, Bills Payable ₹ 15,000; creditors ₹
10,000; Bank loan is secured against Land & Building. Bank overdraft is against stock. Assets
Realised ∴ Bills Receivable ₹ 50,000.
(a) Pay Bank loan ₹ 50,000.
(b) Pay Bank overdraft ₹ 25,000; Bills Payable ₹ 15,000; ₹ 10,000 to creditors.
c) Pay in due ratio 10 : 5 : 3 : 2.
54
d) Pay Bank overdraft ₹ 20,000; Bills Payable ₹ 10,000; ₹ 10,000 to creditors. And ₹ 10,000
Bank overdraft
24. Contingency Reserve is ₹ 20,000 and contingent liability is ₹ 18,000.
How would you deal with the remaining contingency Reserve. ₹ 2,000 should be distributed among the partners in their profit sharing ratio.
b) ₹ 20,000 should be distributed among the partners in capital ratio.
c) ₹ 18,000 should be distributed among the partners equally.
d) ₹ 38,000 should be distributed among the partners in capital ratio
25.. Contingent liabilities are the liabilities which are
a) Contingent on happening of certain event in future
b) Fixed liabilities
c) Current liabilities
d) Liquid liabilities
26. Takeover of liability by a partner is a) Added to capital of a partner
b) Neglected
c) Deducted from capital of a partner
d) Shown Separately
27. After payment of partners loan payment should be made to
a)) The partner having surplus capital
b) The partner having deficiency
c) Govt. Loan
d) Secured Loan
55
28.The firm of M.N.O. has been dissolved when their capitals were ₹ 10,000, ₹ 7,000 and ₹
3,000 respectively after payment of the liabilities, the assets were realised as under : I. ₹ 8,000 II. ₹ 7,500 III. ₹ 6,000
The amount paid to M will be a) 5,500
b) 8,500
c) 6,500
d) 5,000
29. X, Y and Z are partners sharing P & L in the ratio of 5 : 3 : 2. Their capitals are ₹ 94,000, ₹ 66,000 and ₹ 60,000 respectively, Creditors are ₹ 1,00,000 Cash realised after payment of creditors is ₹ 96,000
amount paid to X will be
a) ₹ 32,000
b) ₹ 40,000
c) ₹ 25,000
d) ₹ 30,000
30. Asha, Beena and Chitra are partners sharing P & L in the ratio of 1 : 1 : 2. Their capitals are ₹ 50,000,
₹ 45,000 and ₹ 40,000 respectively. Creditors ₹ 25,000 Secured Loans ₹ 30,000 and Cash ₹
10,000.
The firm was dissolved. Assets realised : ₹ April, 2015 May, 2015 June, 2015 12,000 50,000
1,00,000 Realisation expenses ₹ 2,000 paid in June, 2015. On June, 2015, payment to Asha
will be
56
a) ₹ 5,000
b) ₹ 7,000
c) ₹ 8,000
d) ₹ 10,000
31. Which of the following order of payment under piecemeal distribution is correct
a) Partners’ capital , Partners loan , secured creditors, Preferential creditors
b) Secured creditors, preferential creditors, Partners capital, Partners loan
c) Secured creditors, Partners capital, Partners loan, preferential creditors,
d) Preferential creditors, Secured creditors, Partners loan, Partners capital
32. On amalgamation of a firm, Which account is opened?
A. deficiency account B. realisation account C. profit and loss adjustment account
D. profit and loss suspense account
33. On amalgamation,
A. Cash and bank account is opened in the books of each of the Old Firm only if it takes over by the purchasing firm
B. Cash and bank account is always opened in the books of each of the Old Firm whether or not taken
over by the purchasing firm C. Cash and bank account is opened in the books of each of the Old Firm only if it is not
taken over by the purchasing firm
D. Cash and bank account is never opened in the books of each of the Old Firm whether or not taken over by the purchasing firm
57
. 34. On amalgamation, Profit & Loss A/c (Dr.) balance of the amalgamating firm
A. Closed by debit to Realisation account B. Closed by debit to Partners Capital account C. Closed by credit to Partners Capital account
D. Closed by credit to Realisation account
35. The firms which come together to form a new company are called as-
A. Purchasing firm
B. Vendor firm C. Old firm D. Existing firm
36. Purchase Consideration which is paid directly to the vendor company without any calculation is called as-
A. Lump sum Method B. Net Asset Method
C. Payment Method D. Net Liability Method
37. If market values of all assets is Rs. 2000000 and values of liabilities is Rs. 700000, then PC by net asset method would be-
A. 2700000
B. 1400000
C. 1300000
D. 2300000
38. On amalgamation of firms, accumulated profits/ reserves of old firm get distributed over
A. Old partners in Old PSR B. New partners in New PSR C. Old partners in New PSR
D. New partners in Old PSR
39. On amalgamation, Fictitious Assets of the vendor firm are transferred to
A. partners’ capital account B. purchasing firm account C. realisation account
D. profit and loss adjustment account
58
40. General reserve will be ___________ in realisation A/c.
A. Debited B. Credited
C. Excluded D. Included
41. On sale of firm to a company, the purchase consideration is calculated by
a. Lump sum method
b. Payment method c. Net assets method
d. Lump sum or Payment or Net Assets Method
42. If purchase consideration is more than the net assets taken over, in the books of the
company taking over the firm, the difference is.
a. Debited to Goodwill A/c
b. Credited to Capital reserves A/c c. Debited to Security Premium A/c
d. Credited to General Reserve A/c 43. Dissolution expenses paid by the firm on the sale of partnership firm
a. Debited to Realisation A/c b. Debited to Goodwill A/c
c. Debited to Securities Premium A/c d. Debited to General Reserve A/C
44. A partnership firm has – a. Limited Capital b. Limited Managerial Skill
c. Limited Liability d. Limited Capital and Managerial Skill
45. On conversion of a firm into a Limited Company.
a. Purchase consideration is decided
b. Assets are not revalued c. Liabilities are not revalued d. Purchase consideration is not settled
46. Asset taken over by a partner is –
a. Debited to partner’s capital A/c b. Credited to partner’s capital A/c c. Debited to Realisation A/c
d. Credited to Realisation A/c
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47. Shares and Debentures received from the Ltd. Company are distributed among the
partners in their – a. Profit Sharing Ratio
b. Capital Ratio c. Final Claim Ratio d. Equal Ratio
48. Amount payable by a purchasing company to the vendor firm is called as _______
a. Selling Price
b. Purchasing Price c. Exchange Price
d. Purchase Consideration 49.At the time of conversion, if the realisation expenses of the vendor firm is paid by the new
company, it will be debited to _______ account in the books of new company. a. Goodwill
b. Share Capital c. Cash d. Realisation
50. A, B and C were in partnership sharing profit and losses in equally, they decided to convert their firm into a limited company. The purchase price was settled by issue of 3,300 Equity
Shares of Rs.10 each to the firm, 2,500 Preference Shares of Rs.10 each and Rs.52,000 paid in Cash. Calculate Purchase Consideration?
a. Rs.58,000 b. Rs.1,10,000 c. Rs.1,00,000
d. Rs.52,000
SY BAF --DIRECT TAX – SEM-III – MCQ SMAPLE 50 QUESTIONS
1. Year prior to the Assessment year is called as _______.
a. Assessment Year
b. Previous Year
c. Financial Year
d. Calendar Year
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2. Income tax Act came into force from _____.
a. 1st April 1961
b. 1st April 1951
c. 31st April 1961
d. 31st April 1951
3. Mrs. Madhuri Dixit is assessable as __________.
a. An Individual
b. Firm
c. Association of Individual
d. Company
4. University of Mumbai is assessable as _______ under Income Tax.
a. Company
b. Firm
c. Artificial Juridical Person
d. Local Authority
5.If a person stays in India for _______ number of days during a previous year, he shall be Resident U/s 6(1).
a. 180
b. 182
c. 60
d. 365
6. Notified limit for the maximum amount of exemption for Leave Encashment is Rs.______.
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a. 5,000
b. 20,00,000
c. 3,00,000
d. 5,00,000
7. The dividend income in the hands of the shareholders will be exempt from tax u/s ________.
a. 10(11)
b. 10(35)
c. 10(34)
d. 10(10AA)
8. Residential status of an individual depends on the stay of the assessee in India during the ______.
a. Calendar Year
b. Accounting Year
c. Assessment Year
d. Previous Year
9. Dividend is exempt in case of_______.
a. It is paid by an Indian Company
b. It is paid by a foreign company
c. It is paid by a multinational company
d. it is paid by a joint venture unit.
10. M, a chartered accountant is employed with M Ltd., as an internal auditor and requests the
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employer to call the remuneration as internal audit fee. M shall be chargeable to tax for such fee under the head.
a. Income from salaries
b. Profits and gains from business and profession
c. Income from other sources
d. Income from house property
11. M, who is entitled to a salary of Rs. 20,000 p.m. took an advance of Rs. 50,000 against
the salary in the month of March, 2020. The gross salary of M for assessment year 2020-21 shall be
a. 290,000
b. 240,000
c. 50,000
d. 250,000
12. Un- commuted pension received by a Government employee is
a. Exempt
b. Taxable
c. ⅓ is exempt
d. ½ is exempt
13.Pension received by an employee of the Central or State Government who has been awarded
‘Param Vir
Chakra’
a. Is taxable as income from salary b. Is exempt from tax c. Is taxed after deducting Rs. 15,000 or ⅓ whichever is lower
d. Is taxable as income from other sources
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14. Lump Sum payment from Unrecognised Provident Fund to an employee, on his retirement, over and above his own contributions
a. Is not taxable
b. Is taxable as income from other source
c. Is taxable in case of only ‘specified’ employees
d. Is taxable as ‘profit in lieu of salary
15. Salary received by a Member of Parliament
a. Salary
b. Income from other sources
c. Income from business
d. Exempt income
16. Bonus is taxable on ___ basis.
a. Receipt
b. Due
c. Receipt or due basis whichever is earlier
d. Cash
17. Mr. Shashi is working for HML Ltd. on monthly salary of Rs. 25,000, he took advance against salary of Rs. 75,000 in the month of February 2020, his income from salary during P.Y. 2019-20 will be
a. Rs. 375,000
b. Rs. 300,000
c. Rs. 225,000
d. Rs. 325,000
19. Mr. Mohits salary was increased from Rs. 27,000 to Rs. 35,000 p.m. on 1-6-2019
with retrospective effect from 1-5-2017, his taxable salary for P.Y. 2019-20 will be
a. Rs. 420,000
b. Rs. 500,000
c. Rs. 564,000
d. Rs. 604,000
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19.Mayank has taken a house on rent and sublets the same to Anil. Income from such house property shall
be taxable under the head……...
a. Income from house property
b. Income from other sources
c. Business Income
d. Income from capital Gain
20. Gift received by Mr. Mohan from his friend amounts to 80,000, shall be ________.
1. Exempt up to 50,000
2. Fully Exempt
3. Fully taxable as received from friend
4. Exempt up to 30,000
21. The quantum of deduction allowed u/s 80U is___
1. 80,000
2. 75,000
3. 50,000
4. 70,000
22.If an assessee invests 70,000 in Public Provident Fund, he is entitled to a deduction under section
80 C of _____.
a. 70,000
b. 1,00,000
c. Nil
d. 1,50,000
23. Municipal taxes deduction is done from -------
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A. GAV
B. NAV
C. MUCICIPAL VALUATION
D. FAIR RENT
24. A house property with fair rent Rs 1,00,000 is neither let out nor self-occupied throughout
the previous year.
Its annual value shall be------
a) Rs 100000
b) Rs 50000
c) Nil
d) Rs 70000
25.Unadjusted loss from house property can be carried forward & set off in subsequent years
subject to limit of ___________.
A) 7 Years
B) 6 Years
C) 8 Years
D) 9 Years
26.An assessee has paid life insurance premium of ` 1,25,000 during the previous year for a policy of ` 5,00,000.
He shall
a) Not be allowed deduction u/s 80C
b) Be allowed Deduction u/s 80C to the extent of Rs 1,00,000
c) Be allowed Deduction for the Rs 125000 u/s 80C
d) Rs 500000
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27. X paid fees for his school going son Rs. 9,000, which consisted of tuition fees Rs. 6,000 and rest towards Development Fees. He entitled for a deduction of Rs. ...
a) 6000
b) 15000
c) 9000
d) NIL
28. Senior citizens for section 80D means attaining _____ years anytime during the previous
year or more.
a) 60 years
c) 55 years
b) 75 years
d) 65 year
29. Mr. p has received Interest on deposit Rs 5000 and Interest on saving bank account Rs 4000, amount of deduction U/S 80 TTA would -----
1. Rs 10000
2. Rs 9000
3. Rs 5000
4. Rs 4000
30. If NAV of a house is Rs 50000 and interest on borrowed capital is Rs.10000, land revenue is Rs 5000 . Amount of Income from house property is Rs ------
a) 25000
b) 15000
c) 10000
d) 20000
31. Standard deduction on a family pension of Rs. 1,00,000 will be Rs. ………
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a. 333333
b. 100000
c. 15000
d. 5000
32. Income from undisclosed sources is taxable under head ----
A. Income from house property
B. Income from other source
C. Income from salaries
D. Income from capital gain
33. For computing lottery income, the assessee shall
a) Be entitled to any deduction for purchase of lottery tickets
b) Not entitled to any deduction for purchase of lottery tickets
c)can claim 50 % exemption
d) can claim 10 % exemption
34. The qualifying amount of the preliminary expenditure can be claimed as deduction over period of _________ years in equal instalments.
(A) Four
(B) Five
(C) Eight
(D) Ten
35. If any asset is used for more than 180 days in the year of purchase, the depreciation rate will be ________ of the normal rate.
(A) 50%
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(B) 100%
(C) 75%
(D) Nil
36. Under the head Business or Profession, the method accounting which an assessee can follow shall be :
(A) Mercantile system only
(B) Cash system only
(C) Mercantile or cash system
(D) Hybrid system
37. Any sum received under non-compete agreement is taxable under the head ________.
(A) Income from other sources
(B) Business Income
(C) Capital Gain
(D) Not Taxable
38. An amount paid to a company to be used for scientific research shall be allowed a deduction equal to
(A) 100%
(B) 125%
(C) 150%
(D) 110%
39. Profit on sale of Furniture Rs. 10,000/- Net profit as per Books of Accounts Rs. 95,000/-
Interest received on deposits Rs. 5,000/- Purchase of Electric Motor Rs. 8,000 was
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included in Purchase A/c by the accountant. Income from Business as per tax would be Rs._______.
(A) 90,000
(B) 1,02,000
(C) 1,08,000
(D) 88,000
40 Net Profit as per Books of A/c-Rs. 95,000/-, Drawings Rs. 10,000/- Income Tax Rs. 25,000/- Profit on sale of Fixed Asset Rs. 35,000/-Cash paid to a Mr.Z (Supplier) on 10-04-2019 Rs. 25,000/- Income taxable under Business & Profession would be Rs.________.
(A) 95,000
(B) 1,20,000
(C) 70,000
(D) 1,35,000
41. Mr. X is a propreitor of a business and during the year he paid salary of Rs. 40,000
to his wife who is B.com Qualified and handles the accounts of the business. The Net profit as per Books of Accounts is Rs. 2,30,000/- what shall be the taxable income from business?
(A) 2,50,000
(B) 1,90,000
(C) 2,70,000
(D) 2,30,000
42. Net Profit as per Books of Accounts Rs. 1,50,000/- Salary Rs. 40,000 (includes salary to partners Rs. 20,000), Interest on capital (Partners Capital) Rs. 15,000/- what shall be the
income from business?
(A) 1,50,000
(B) 1,65,000
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(C) 1,35,000
(D) 1,75,000
43. Income earned from speculation is taxable as _______
(A) Business Income
(B) Salary Income
(C) Capital Gains
(D) Other Sources
43. The assessee is allowed to opt for market value as on 1-4-2001 in case of
a. All capital assets
b. All capital assets other than depreciable asset
c. Only house properties
d. Other sources
44. In case of long term capital gain, the amount to be deducted from sale consideration shall be
a. In which such conversion took place
b. In which such converted asset is sold or otherwise transferred
c. In which such converted asset was purchased
d. The selling value less the cost
45. Conversion of capital asset into stock in trade will result into capital gain of the previous
year
a. In which such conversion took place
b. In which such converted asset is sold or otherwise transferred
c. In which such converted asset was purchased
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d. The selling value less the cost
46. To be a long term capital asset, a resident house property should be held for more than
a. 12 months
b. 24 months
c. 36 months
d. 60 months
47. Where the capital asset became the property of the assessee in any mode given
under section 49(1), the cost of acquisition of such assets shall be
a. The market value of the asset as on the date of acquisition by the assessee
b. Cost for which the previous owner of the property acquired it
c. The market value or acquisition of the asset whichever is less as on the date of acquisition by the assessee
d. The market value or acquisition of the asset whichever is higher as on the date of acquisition by the assesse
48. Where a partner transfers any capital asset into the business of firm, the sale consideration of such asset to the partner shall be
a. Market value of such asset on the date of such transfer
b. Price at which it was recorded in the books of the firm
c. Cost of such asset to the partner
d. Market value or book value whichever is less of such asset on the date of such transfer
49. Gross Income from Salary is Rs. 500,000; Net Income from Business & Profession
is Rs. 40,000; Net Income from Capital Gains is Rs. 50,000; Net Income from Other Sources is Rs. 50,000. Find Net Taxable Income.
A. 600,000 B. 640,000
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C. 600,000 D. 550,000
50 Where a partner transfers any capital asset into the business of firm, the sale consideration
of such asset to the partner shall be
a. Market value of such asset on the date of such transfer
b. Price at which it was recorded in the books of the firm
c. Cost of such asset to the partner
d. Market value or book value whichever is less of such asset on the date of such transfer
