1. Accounting rules, procedures and methods should be observed alike and should not be changed from year to year. This is called accounting convention of

Consistency Full disclosure


Conservation Going concern


2. The accounting convention of matching means

Profit for the sales to be matched with the sales revenue


Profit for the period to be matched with the investment


Expenses of a period to be matched with the revenue of the same period


Partners must get equal share in profit


3. According to the money measurement concept the following will be recorded in the books of accounts

quality control in business commission payable to salesman


directors and managers discussion none of these


4. The convention of conservatism implies that

expected future losses must be provided for


revenue must not be recognised unless it is accrued


both of the above


none of these


5. Going concern assumption of accounting is also known as

continuity assumption monetary unit assumption


accounting period assumption none of the above


6. When shares are forfeited Share Capital Account will be debited by

nominal value of shares paid-up amount of shares


called up amount of shares forfeited amount of shares


7. After reissue of forfeited share the balance of share forfeited account will be transferred to

Share Capital Account Capital Reserve Account


Shareholder's Account General Reserve A/c


8. and are partners sharing profits in the ratio of 7:3. C is admitted for 3/7 share in the profits. The new profits sharing ratio of the partners will be

14:6:15





9. In the event of dissolution of a partnership firm, the provision of doubtful debt is transferred to

Realisation A/c Partner's Capital A/c


Sundry Debtor'sA/c Profit and Loss A/c


10. Liability of partners for firm's debt is

Joint


Joint and separate


11. Assets of the business means

Liabilities capital


Liabilities capital


12. Which of the following is not correctly matched

Secured debentures mortgage deed


Rights share-Issued to new shareholders


Convertible debentures


Redeemable preference shares



Separate


None of the above


Cash capital


Capital drawings


13. Revenue is generally recognised as being earned at the point of time, when

Sale is effected Production is complete


Cash is received Infinancial year


14. Unless written off, the loss on issue of debentures is shown

On the asset side of the balance sheet On the debit side of P LA/c


None of the above Both and


15. In case of admission of a new partner, the amount of goodwill brought in by him in the firm is shared by the old partners

in their old profits sharing ratio in the ratio of their capital


in their sacrificing ratio in the new ratio


16. When all partners are insolvent the loss is borne by

Government Employers


Partners All of the above


17. The owner of the business is treated as a creditor for the money invested by him is
Lost concept Realisation concept Money measurement concept Business entity concept
18. Break even, means Costs are more than revenue Revenues are more than cost Revenues and cost are equal None of the above
19. Goodwill is a
Liquid asset Current asset Fictitious asset Intangible asset

20. Copyright is a

Personal account


Nominal account


21. Which of the following is a current liability

Debenture


Bank overdraft


22. 'Garner Vs Murray' relates to

Deficiency A/c


Contract


23. Current account is prepared under

Fixed capital


None



Real account


None of the above


Long term loan


Share premium


Insolvency


Hire purchase


Fluctuating capital


Both fixed and fluctuating


24. On Admission of a partner which account is not prepared

Realisation A/c Distribution A/c


Revaluation A/c Adjustment A/c


25. When a goodwill account is raised at the time of admission of a new partner then credit is given
to the old partners in their Capital ratio Old profit sharing ratio Sacrificing ratio New ratio
26. In case of an unregistered firm a partner cannot get a share in profit file a suit against another partner get interest on his capital get interest on loan
27. The balance-sheet is only An account A statement Asummary None of the above
28. Intangible assets usually fall in the category of current assets semi fixed assets fixed assets none of the above

29. Which one of the following is shown first when the assets are arranged in the order of their liquidity

Cash in hand Debtors


Investment B/R


30. A company can purchase its own

Equity shares Preference shares


Debentures All of these


31. Amount set aside out of divisible profits for a specific purpose and invested outside is known as

Reserve Fund


Capital Reserve Secret Reserve


32. While preparing funds flow statement an increase in working capital is regarded as

application of funds source of funds


neither application nor source both application as well as source


33. Which of the following is not a source of funds

Issue of share capital


Sale of fixed assets


Issue of bonus shares


Issue of shares for consideration other than cash


34. Teeming and lading relates to

pilferage of stock


misappropriation of cash


frauds relating to the receipt of money from debtors


bribery of cash for some benefits


35. In the absence of partnership deed, the interest on capital will be provided at per annum.

will not be provided


10%


36. When we buy furniture on cash, we debit

Cash account Furniture account


Purchase account None of the above


37. When two or more existing companies go into liquidation and a new company is formed to take over their business, this activity is known as

Absorption Internal reconstruction


External reconstruction Amalgamation


38. The application money payable on a share should not be less than of face value of share.

10%


25% 15%


EIJ-49855-A 6

39. and were sharing profit of a business in the ratio of 3:2. They admit into partnership, who gets 1/3 of the share of profit from 1/2 of share of profit from What will be the new profit sharing ratio







40. Which of the following errors will not affect the trial balance

Goods for Rs. 300 purchased on cash, expenses account was debited instead of purchase account


Purchase returns book for December was overcast by Rs. 200


Sales book c/f Rs. 2200 instead of Rs. 2000


None of the above


41. Current ratio of a firm is which one would improve the ratio

to pay a current liability


to borrow money for a short period


purchase goods for cash


to give an interest bearing promissory note to creditor in payment of the full amount due to him


42. Acid test ratio is

Current assets current liabilities Quick assets current liabilities


Total assets total liabilities Fixed assets fixed liabilities


43. Gearing ratio means the following ratio

Long term debt+ preference capital/net worth


Long term debt/equity capital


Long term debt/ preference capital


Long term debt/equity capital preference capital


44. If current assets are Rs. 2,00,000, Stock Rs. 1,00,000 and working capital Rs. 1,20,000, then the current ratio will be

2.5:1 1.25:1


2.75:1 1.5:1


45. If the total assets are Rs. 2,60,000, total debt Rs. 1,80,000, current liabilities Rs. 20,000, then the debt-equity ratio will be

4:1 3:1


2:1 1:1


46. The cost of goods sold is Rs. 50,000, the value of opening and closing stock is Rs. 15,000 and Rs. 25,000 respectively. The stock turnover ratio will be

2 times 2.5 times


3.3 times 1.25 times


47. The current ratio of a firm is 5 3. Its net working capital is Rs. 20,000. The value of its current assets will be

Rs. 30,000 Rs. 50,000


Rs. 20,000 Rs. 60,000


48. If trade creditors are Rs. 10,000, unpaid expenses 10% of creditors and there is no other current liability, current ratio is 2:1and stock is Rs. 7,000, then quick assets will be

Rs. 10,000 Rs. 12,000


Rs. 14,000 Rs. 15,000


49. Liquidity ratios are used

to assess the financial position of the firm at a point of time


to evaluate the performance of the firm over a period of time


to judge a firm's ability to meet short term obligations


to assess the present and expected earnings of the firm


50. If current ratio is 2.5, quick ratio is 1.5 and the net working capital is Rs. 15,000, the value of inventory will be

Rs. 10,000 Rs. 15,000


Rs. 37,500 Rs. 52,500


51. The current ratio of a firm is which would reduce the ratio

To pay a current liability


To borrow money for a short period


To purchase goods for cash


To give an interest bearing promissory note to a creditor in payment of the full amount due to him


52. ROI ratio is calculated to measure the following

Long term solvency of business


Earning power of net assets of business


Short term liquidity position of business


The relationship between goods sold and inventory level


53. Statement Ratio analysis is an important tool of judging the financial soundness of the Company.
Statement Ratio aalysis is one of the guides to an investor for deciding about investing or not investing in a company.

Both and are true and is the correct explanation of


Both and are true and is not the correct explanation of


is true but is false


None of the above


54. If earning price ratio is 0.05 and Earnings per share is Rs. the market price of share

Rs. 40 Rs. 100


Rs. 160 Rs. 0.40


55. The debt equity ratio of a company for three consecutive years was as follows 1989 399 28 1990 493 34 1991 624 42 The above ratios show

That the company's financial structure is sound


That the company is capable of meeting its short term liabilities


That the interests of creditors are not safe in the company


That the long term liquidity of the company is improving from year to year


56. Which of the following is not a limitation of Ratio Analysis

Only quantitative factors are considered


Not free from bias


Accuracy of accounts are considered


Reality behind the statements are not considered


57. What is ratio

The ratio refers to the numerical relationship between two variables


The ratio is an assessment of one number in relation to the other


None of the above


Both and


58. Which of the following are profitability ratios

Dividend Ratio Current Ratio


Leverage Ratio Expenses Ratio


59. Which of the following is earning ratio

Payout ratio Capital turn over


Current ratio Leverage ratio


60. Which of the following is activity ratio

Gross profit ratio Earning per share


Capital turnover Liquidity ratio


61. The EXIM Bank was set up in the year

1972 1982


1985 1960


62. Which of the following is not a lending function of EXIM Bank

Technology and consultancy services Loans to farmers


Refinance facilities to Banks All of the above


63. Loans to commercial banks in India include

Export bills rediscounting scheme Refinance of export credit


Both of these None of these


64. The New issue market is regulated by

Finance Ministry Reserve Bank of India


Securities and Exchange Board of India None of the above


65. Underwriters means

They are writers


Share brokers


Who agree to take up securities which are not subscribed


None of the above


66. When was LIC started

1976 1986


1956 1952


67. Which of the following is true

Insurance Act 1887 Insurance Act 1974


Insurance Act 1938 Insurance Act 1991


68. Which of the following is true

IRDA Act 1999 IRDA Act 1992


IRDA Act 1993 IRDA Act 1996


69. The 'MRTPAct' 1969 was brought into effect from

1969 1958


1970 None of these


70. MRTP Act extends to whole country except

Nagaland Jammu Kashmir


Assam Tripura


71. Principle of 'Span of Control' is concerned with

Class of employees to be controlled Number of employees to be controlled


Managerial level of employees None of these


72. Span of management refers to

Activities performed by a manager


Number of subordinates supervised by a manager


Number of superiors a manager has to report to


None of the above


73. Process of planning begins with

Forecasting


Setting policies


74. MBO refers to

Management by objectives


A technique of achieving organisational goals


Performance review


None of the above



Setting objectives


None of the above


75. Which among these is not a feature of decision making process

Persuasiveness Intellectual


Line function None of these


76. Problem finding process involves

Finding out the competitors


Finding out a deviation from past experiences


Finding out deviation from planned course of action


None of these


77. The chief drawback of a committee organisation is

Misuse of authority Divided responsibility


Lack of participation None of the above


78. Motivation means to

Co-ordinate people to work united Guide people to work efficiently


Induce people to work willingly Control the work done by the people


79. Who has propounded the X and Y theory of motivation

Mc Gregor Vroom


Herzberg O'Donnel


80. Which of the following is the function of a leader

Representing Integrating


Guiding All of these


81. Communication is an exchange of

Information Feelings and gestures


Ideas and opinions All of the above


82. The main advantage of functional organisation is

Simplicity Specialisation


Experience None of these


83. Delegation of authority implies

Delegation of authority to lowest level of management


Delegation of responsibility


Delegation of authority to immediate subordinates


None of the above


84. Management is

A Science An Art


A Science as well as Art None of the above


85. Which among these is not a sub-function of directing

Command Motivation


Control Supervision


86. Objectives state the

Destination Route map


Major policies None of these


87. Who introduced the concept of MBO

Mary Parker Follet Keith Device


Peter Drucker None of the above


88. Which of the following determines what to do

A Policy Strategy


Procedure Objective


89. Strategic plans are formulated by the

Low level managers Middle level managers


Top level managers None of the above


90. Chain of communication in the organisation is provided by

Line authority Staff authority


Informal authority None of the above


91. The chief advantage of line and staff organisation is

Quick decisions Expert advice


Centralisation of authority None of the above


92. An informal organisation

Is officially created Has formal authority relationship


Is a result of interpersonal contacts None of these


93. Need Hierarchy theory of motivation is propounded by

Maslow Mc Gregor


Herzberg None of the above


94. The leadership style which is based on consultations with his group is called

Autocratic style Democratic style


Paternalistic style None of the above


95. The concept of Managerial Grid has been propounded by

Black and Mouton Likert


Fiedler None of the above


96. When a leader does not interfere with the working of his group, the leadership style is known as

Free rein style Participative style


Authoritarian style None of the above


97. The theory of leadership which believes that effective leadership is a result of certain personal qualities, is known as

Trait theory Follower theory


Situation theory None of the above


98. Ethics may be defined as

A code of conduct A code of material


A code of manager None of the above


99. Factor causing unethical conduct in business is

Fair competition Government policies


Economic greed Increasing social values


100. Which cause is responsible for ethical conduct of business

Consumerism Increasing public awareness


Buyers market All of the above

101. Which of the following is involved in office management


A systematic and continuous process of telling Listening and understanding


Both and None of the above


Division of work Record keeping
Both and None of the above
102. What is importance of plant layout
It ensures efficiency in office work It improves supervision
It facilitates effective communication process All of the above
103. What are the principles of office layout
Principles of effective supervision Principle of morale and loyalty
Both and None of the above
104. Who defined about records management
Henry Fayol Reffiningwell
Robinson Both and
105. What are the objectives of office automation
It develops necessary data of management To install computers
To install automatic response system All of the above
106. Communication involves

107. For effective communication in office management, we need, effective

Internet Wide Area Network


Internal Communication None of the above


108. Methods for office communication

Oral Communication Written Communication


Both and None of the above


109. What do Staffing functions include

Selection Training


Development and appraisal of personnel All of the above


110. Importance of office communication

To improve public image of the firm It eases office systems and routines


Both and None of the above


111. Every company shall have a whole time secretary, which has a paid-up share capital of not less than

Rs. 50 lakhs Rs. 1 crore


Rs. 2 crores Rs. 25 lakhs


EIJ-49855-A 14

112. The person with a capacity as secretary, who helps the promoters in carrying out all preliminary work connected with function of company is referred as

General Secretary Protem Secretary


Regular Secretary None of these


113. A copy of the resolution appointing a person as secretary must be forwarded to Registrar of Companies within

20 days 30 days


60 days 90 days


114. The company secretary must serve the best interests of

Promoters Directors


Debenture holders Share holders


115. Appointment and qualification of secretary rules came into force in

December 1988 June 1988


December 1995 June 1985


116. Company secretary may be acting as

Agent of directors Liasionofficer


Office executive All of above


117. Statutory meeting of the shareholders of a public company is held

Only once during the life time Every 2 years


Every 5 years Every 10 years


118. The notice for a general meeting of a company must be given at least before the meeting.

7 days 14 days


21 days 30 days


119. A special resolution is one to pass which the votes cast in favour must be

Twice the votes cast against it Three times the votes cast against it


Three-fourth of the total votes cast One-fifth the votes cast against it


120. The Central Government has power to call

An annual general meeting A statutory meeting


An extraordinary meeting None of these


ROUGH WORK