21. A machine was purchased on April 1, 2017 for ₹ 10,00,000 and on October 1, 2017, a new machine was added for ₹ 4,00,000. Calculate the balance of ‘Machine Account’ as on March 31, 2018, if depreciation is charged @ 20% p.a on Diminishing Balance method
(A) 11,20,000(B) 13,20,000
(C) 11,60,000
(D) 12,00,000
22. Which one is true?
(A) Advertising strategy has the element of creating advertising messages.(B) Advertising strategy is not concerned with selecting advertising media
(C) Marketing mix does not consider ‘Price’.
(D) Market means the place where goods and services are sold and rendered
23. The Government of India implemented the ‘Goods and Services Tax’ in the country from:
(A) January 1, 2017(B) April 1, 2017
(C) July 1, 2017
(D) November 9, 2016
24. Which one is correct?
(A) Rent, lighting and supervision cost are common costs.(B) ‘Joint Costs’ cannot be apportioned only by adopting a basis of apportionment
(C) Cost ascertainment does not involve allocation and apportionment of the expenditure to the cost centres.
(D) Production cost does not include the cost of the primary packing of the product
25. ‘It is a market where low risk, unsecured and short-term debt instruments, that are highly liquid, are issued and actively traded everyday.’ This market is known as:
(A) Primary Market(B) Secondary Market
(C) Money Market
(D) Capital Mark
26. Which of the following is not kind of ‘Social Responsibility of Business’?
(A) Professional Responsibility(B) Discretionary Responsibility
(C) Ethical Responsibility
(D) Economic Responsibility
27. A decision to issue new Debentures is:
(A) Capital Budgeting Decision(B) Operating Decision
(C) Financing Decision
(D) Investing Decision
28. Which one is correct?
(A) Personality never changes.(B) Openness to experience is a personality dimension that characterises someone in terms of imagination, sensitivity and curiosity.
(C) Personality is the sum total of ways in which an individual reacts to others but does not interact with others.
(D) The fit between personality type and occupational environment does not determine turnover.
29. Which one is correct?
(A) Trade credit is a cost-free source of finance.(B) Trade credit involves implicit cost.
(C) With the increase in the firm’s purchases, trade credit decreases if other things remains the same.
(D) Increase in deferred income reduces the firm’s liquidity.
30. Analysis of comparative financial statements include:
(A) Common Size Statements(B) Cash Flow Analysis
(C) Trend Analysis
(D) Horizontal Analysis
31. Which one is not the purpose (objective) of analysis of financial statements?
(A) to assess the current profitability and operational efficiency of the firm(B) to judge the ability of the firm to repay its debt
(C) to show financial position through balance sheet and profitability through profit & loss account
(D) to identify the reasons for change in the profitability financial position of the firm:
32. ‘Income and Expenditure Account’ is prepared by ‘Not-for-Profit Organisation’ on:
(A) Cash basis(B) Receipts basis.
(C) Expenditure basis
(D) Accrual basis
33. Which one is not the purpose of Cost Accounting?
(A) product decisions(B) ascertain the financial position of business
(C) operational planning and control
(D) making special decision about ‘make or buy’
34. Which of the following medium in universal, portable and inexpensive, but has its own limitations in terms of storage capacity and speed?
(A) Optical Disk(B) Hard Disk
(C) Floppy Disk
(D) R. A. M.
35. The charter of a company is its
(A) Statement in lieu of prospectus(B) Memorandum of Association
(C) Articles of Association
(D) Prospectus
36. When computing the purchasing power gain or loss on net monetary items, which of the following accounts is classified as non- monetary?
(A) Allowance for uncollectible accounts(B) Accumulated depreciation of equipment
(C) Advances to unconsolidated subsidiaries
(D) Unamortized premium on bonds payable
37. A machine is purchased for ₹ 3,00,000 and its salvage value, after its useful life of 9 years, will be ₹ 30,000. Repairing expenses of the machine at the end of 4th year will be ₹ 20,000. What will be the rate of depreciation per annum under straight line method?
(A) 11.11%(B) 10%
(C) 9.37%
(D) 10.94%
38. Reshma has returned goods worth ₹ 10,000 to Rajesh as she found them defective. Which document same? is to be prepared by Rajesh for the
(A) Debit Note(B) Credit Note
(C) Invoice
(D) Cash Memo of ₹ 10,000
39. A company purchased assets of ₹ 10,00,000 and issued 10% debentures of ₹ 8,00,000 to the vendors as consideration. While recording the above transaction in Journal, the balance of ₹ 2,00,000 will be credited to ……………
(A) Goodwill A/c(B) Profit & Loss A/c
(C) General Reserve
(D) Capital Reserve
40. Dividend is usually paid on:
(A) Issued Capital(B) Paid-up Capital
(C) Called-up Capital
(D) Authorised Capital
