Foundation Mock Test – 2nd
Test Booklet No. – 110011
(1)
Duration : 1 ½ Hours
Total Marks : 200
Date: - 01.10.2015
Ans. a
Explanation:
Bank overdraft as per cash book
Add: Cheque deposited but not cleared
Less: Cheque issued but not Cashed
Bank overdraft as per bank statement
15000
4000
6000
13000
(2)
Ans. a
Explanation:
As bank has added charges of Rs. 300 twice and cash book has recorded charges only once so
bank overdraft as per bank statement is more than bank overdraft as per cash book by Rs. 300.
So to arrive at overdraft balance as per pass book we have to added Rs. 300 in overdraft balance
as per cash book.
(3)
Ans. a
Explanation:
Balance in first year
80,000- (80,000 x 10%) = 72000
Balance in second year
72000 – (72000 x 10%) = 64800
Balance in third year
64800 – (64800 x 10%) = 58320
Balance in Fourth year
58320 – (58320 x 10%) = 52488
(4)
Ans. a
Explanation:
Depreciation = (1000000 + 100000) x 20/100 = 220000
(5)
Ans. d
Explanation:
Outstanding telephone bills =
(+) Electricity
(+) Salary
(6)
200
1000
2000
3200
Ans. b
Explanation:
Cost of goods sold = OP. Stock + purchases + direct expenses – Closing Stock.
15,00,000 = 6,00,000 + Purchases + 0 – 400000
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Purchases = 13,00,000
(7)
Ans. b
Explanation:
Interest payable on debenture is charge against profit.
(8)
Ans. b
Explanation:
In case of over-subscription of shares, subscribed capital can exceed paid up share capital.
(9)
Ans. b
Explanation:
D's share of goodwill = 5,000 
Goodwill of firm = 10,000 
2
= 10,000
1
4
= Rs. 40,000
1
As D's share is 1/4th
(10)
Ans. b
Explanation:
Total Capital = 20,000 
4
 Rs .80,000
1
(11)
Ans. b
Explanation: Latin
(12)
Ans. b
Explanation:
Based on test checks
As records are checked on test basis, some mistakes and fraud may remain undetected.
(13)
Ans. c
Explanation:
Both
Financial Audit is conducted to express an opinion whether Balance sheet presents true and fair
view of financial position (i.e. assets and liabilities) and P&L A/c present true and fair view of
profitability or not.
(14)
Ans. a
Explanation:
As per the Indian Partnership Act, 1932
(15)
Ans. a
Explanation:
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Audit program is a set of instructions (steps & procedure) which are to be followed for proper
execution of audit.
(16)
Ans. d
Explanation:
(17)
Ans. a
Explanation:
(18)
Ans. c
Explanation:
(19)
Ans. a
Explanation:
(20)
Ans. b
Explanation:
(21) Ans. d
Explanation:
(22)
Ans. a
Explanation:
(23)
Ans. b
Explanation:
(24) Ans. b
Explanation:
(25)
Ans. d
Explanation:
(26)
Ans. b
Explanation:
(27)
Ans. c
Explanation:
(28)
Ans. b
Explanation:
(29)
Ans. a
Explanation:
(30)
Ans. a
Explanation:
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(31)
Ans. a
Explanation : Since there is positive relationship in case of substitute goods. So if
price of substitute of x commodity falls the demand of x commodity also falls
subsequently.
(32)
Ans. b
Explanation : Since there is direct relationship between income and demand
(33)
Ans. c
Explanation : Since electricity can be putted to numbers of uses and more the uses
of a commodity more is the elasticity.
(34)
Ans. a
Explanation : Since for necessities a consumer is ready to pay a very high price
hence it is highest
(35)
Ans. d
Explanation : Because consumer surplus is measured with what a consumer is ready
to pay and it can only measured by marginal utility only.
(36)
Ans. a
Explanation : Since where MU is zero the TU is maximum as it is called the point of
maximum satisfaction and after this point TU starts to decreasing and MU turns
negative.
(37)
Ans. a
Explanation : Because there is a positive relationship between price and quantity
supplied. So, if any percentage or proportionate change in quantity supplied is due to
percentage or proportionate change in price.
(38)
Ans. a
Explanation : Because There is a positive relationship between good's price and
quantity supplied. Hence, the slope of supply curve is upward.
(39)
Ans. b
Explanation : A curve which shows the quantity of products which a producer is
ready to sell at a particular price is known as "supply curve".
(40)
Ans. c
Explanation : Since after the point of inflexion the rate of increase of TP is diminishing.
(41)
Ans. b
Explanation : Since there is inverse relationship between production and cost hence
when the returns are increasing the cost would be diminishing per unit.
(42)
Ans. d
Explanation : Production function measures the relationship between inputs and
output.
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(43)
Ans. a
Explanation : AVC slopes downwards at first and then start rising again due to
operations of law of variable proportion because as the TP increases AVC declines as
the TP is highest AVC is minimum and as the TP decline AVC again starts rising.
(44)
Ans. b
Explanation : The changes for fuel and electricity is variable cost as it increases with
the level of consumption.
(45)
Ans. b
Explanation : Because the number of units is increased and TFC is fixed hence it
declines continously rather than constant decline
(46)
Ans. b
Explanation:
Median is defined as the middlemost or the Central value of the variable in a set of
observations, when the observations are arranged either in ascending or in
descending order of their magnitudes. Therefore it divides the arranged series in two
equal parts.
(47)
Ans. c
Explanation:
5X  6Y  9  0 and X  6
5  6  6Y  9  0
30  6Y  9  0
6Y  39  0
6Y  39
39
6
13
Y
2
Y
= − 6.50
(48)
Ans. b
Explanation:
Wages of 8 workers in ascending order
38, 42, 45, 47, 49, 54, 55, 56
n=8
th
th
n
n 
  value    1 value
2
 
2 
2
median =
th
th
8
8 
  value    1 value
2
2 
2
=
(4) th value  (5) th value
2
=
47  49
2
=
= 48
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(49)
Ans. d
Explanation:
Coefficient of variation =
S.D.
 100
X
S.D.
 100
10
50 10
S.D. 
5
100
50 
 Variance = (S.D.)2  52  25
(50)
Ans. b
Explanation:
Zy = a+b = x
Here: y = x-10
Zy = 23-10 = 13
(51)
Ans. b
Explanation:
5x  2y  6
2y  6  5x
6 5x

2 2
5 5
|b| 

2
2
y
[coefficient of x]
mean deviation of y = |b|  mean deviation of x about mean.
=
5
 6  15
2
(52)
Ans. b
Explanation:
(53)
Ans. a
Explanation:
(54)
Ans. b
Explanation:
(55)
Ans. c
Exlanation:
The objectives of time series are to study the past behaviour of data and forecast for future.
(56)
Ans. a
Explanation:Time series components are simple trend, seasonal variation, cyclical variation and
random variation.
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(57)
Ans. a
Explanation:
Let Price Index No of 1991 is 100%
And Price Index No. of 1998 is 355%
 Increase in price index No will be 355 – 100 = 255%
(58)
Ans. b
Explanation:
Cost of living index No goes up from 110 to 200 and salary of the worker is raised Rs.
3250 to Rs. 5000.
 Real salary will be =
200
 3250  5909.09 Rs.
110
(59)
Ans. c
Explanation: Equipment: Original Equipment Manufacturers.
(60)
Ans. b
Explanation: Interest
(61)
Ans. c
Explanation: Death information
(62)
Ans. b
Explanation: Numerically
(63)
Ans. d
Explanation: Advertisement
(64)
Ans. c
Explanation: Office order
(65)
Ans. a
Explanation: Office Notes
(66)
Ans. c
Explanation: Stop
(67)
Ans. c
Explanation: Facsimile
(68)
Ans. b
Explanation: Representation
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(69)
Ans. b
Explanation:
Since HRM is related to workforce.
(70)
Ans. d
Explanation:
Since all are the features of personnel management.
(71)
Ans. d
Explanation:
Since all are covered into the nature of HRM.
(72)
Ans. d
Explanation:
Since all above mentioned are the limitations of HRM.
(73)
Ans. a
Explanation
This definition was given by Edwin B Flippo.
(74)
Ans. a
Explanation:
Since training is to impart technical knowledge to employees.
(75)
Ans. a
Explanation:
Since Eric Borne has developed the “Transactional Analysis”.
(76)
Ans. c
Explanation:
It was given by Frediek Herzberg.
(77)
Ans. b
Explanation:
Since informal leaders do not have formal authority.
(78)
Ans. b
Explanation:
Since Lewin Leppett and white conducted leadership studies in 1939.
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(79)
Ans. a
Explanation:
Since under this method behavioral aspect is compared.
(80)
Ans. d
Explanation:
Since ‘PAC’ are stages of Transactional Analysis.
(81)
Ans. d
Explanation: Joseph Schumpeter
(82)
Ans. c
Explanation: Peter Drucker
(83)
Ans. b
Explanation: Flexibility
(84)
Ans. c
Explanation:
According to Maslow, thrill-seekers obviously love being entrepreneurs and much
depends on them only.
(85)
Ans. d
Explanation:
According to Napoleon hill an Entrepreneurs is his own boss.
(86)
Ans. c
Explanation:
He likes innovation and enjoys working on something new.
(87)
Ans. b
Explanation: Healer
(88)
Ans. c
Explanation: Both (a) and (b)
(89)
Ans. c
Expertise
Ans. c
It triggers a creative idea which generates a series of innovative events.
(90)
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(91)
Ans. d
Explanation:
Since all are features of business environment.
(92)
Ans. d
Explanation:
“CPP”stands for “captive power plant”.
(93)
Ans. a
Explanation:
Since external factors cannot be controlled.
(94)
Ans. a
Explanation:
“T” stands for Technology.
(95)
Ans. d
Explanation:
Since all are linked with privatisation.
(96)
Ans. c
Explanation:
Since under HUF registration is not required.
(97)
Ans. d
Explanation:
Since all of the above statements are correct.
(98)
Ans. a
Explanation:
Since LLP means “limited liability partnership”
(99)
Ans. b
There were 3 departmental enterprises railways, post and telegraphs and defense
production.
(100) Ans. a
Explanation: “ILO” stands for “International labour organization.”
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