COMMON PROFICIENCY TEST JUNE-2014
TIME -2 HRS
PAPER 1
MAXIMUM MARKS: 100
THE TEST IS DIVIDED INTO TWO SECTIONS
QUESTIONS 1 TO 100 HAVE ONLY ONE CORRECT ANSWER & CARRY +1 MARK FOR EACH CORRECT
ANSWER & -0.25 MARK FOR EACH WRONG ANSWER.
PART-A : ACCOUNTS ( 60 MARKS)
Q.1 By the misuses of which Convention secret reserve is created :
(a) Conservatism
(b) Materiality
Disclosure
Q.2. Function of accounting include:
(a) Keeping systematic record
(c) Ascertains the profit & loss
(c) Consistency
(d)
(b) Protecting properties of the business
(d) All of these
Q.3. The direct advantages of accounting do not include(a) Preparation of financial statements
(b) Competitive advantage
(c) Ascertainment of profit on loss
(d) Information to interested groups
Q.4. Which of the following conventions is/are considered as fundamental by the IASC and the ICAI?
(a) Going concern concept
(b) Accrual concept (c) Consistency concept
(d) All of the above
Q.5. Accounting is basically concerned with (a) Forecasting
(b) Measurement
(c) Management
(d) None of the above
Q.6. Insignificant events are not recorded in the books of accounts due to (a) Materiality concept
(b) Cost concept
(c) Conservatism concept
(d) Verifiable objective concept
Q.7. Expenses are also called as :
(a) Assets
(b) Expired cost
(c) Unexpired cost
Q.8. Following are the principles of valuation except?
(a) Future value
(b) Realization value
(c) Present value
(d)Historicalcost
Q.9. Provision for Doubtful debts is made because of ?
(a) Substance over form
(b) Going concern
(c) Prudence
(d) Matching
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(d) Liability
Full
Q.10. Financial position of the firm is assessed on the following basis ?
(a) Cost concept
(b) Matching concept
(c) Periodicity concept
Q.11. The example of conservatism concept is :
(a) Provision for Doubtful Debts
(c) Ascertainment of expected gains
(d) Accrual concept
(b) Provision for Discount on Creditors
(d) None of these
Q.12. The problems related to price rise are handled by :
(a) Management Accounting
(b) Cost accounting
(c) Social Responsibility Accounting
(d) Inflation Accounting
Q.13. Insured goods destroyed by fire, the Insurance Company accepted the full claim. In this transaction the entry
in Journal would be :
(a) Insurance Co. a/c
Dr
To Purchases a/c
(b) Loss by fire a/c
Dr
To Purchases a/c
(c) Insurance Co. a/c
Dr
To Profit & Loss a/c
(d) Insurance Co. a/c
Dr
To Purchases a/c
Q.14. Goods worth RS 5000 sold to Ram @ 10% trade discount and @ 1% cash discount on payment with in 10
days. Ram made payment with in 7 days. At time of receiving payment the entry in the Journal would be :
(a) Cash a/c
Dr
4450
Discount
Dr
50
To Ram
4500
(b) Cash a/c
Dr
4455
Discount a/c
Dr
45
To Ram
4500
(c) Cash a/c
Dr
4450
Discount a/c
Dr
50
To Sales a/c
4500
(d) Cash a/c
Dr
4500
Discount a/c
Dr
45
To Ram
4545
Q.15. The recording of the transaction related to the sending of debit note to the seller by the Purchaser will be done
(a) In Purchases Book (b) In Sales Book
(c) In Sales Return Book
(d) In Purchase Return Book
Q.16. The recording being done in the Journal Proper will be :
(a) Bad Debts
(b) Payment of salary (c) 50 meters cloth purchased from Ram
Q.17. The meaning of ledger is :
(a) To make posting in the ledger from the book of original entry-Journal
(b) To carry forward the balances of account in the next year
(c) The book of final accounts
(d) Memorandum book
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(d) Credit sale
Q.18. Goods worth Rs 100 sold to chunni babu. The sales account opened by this transaction is to be closed. What
shall be written in the column of 'Particulars"?
(a) To chunni babu
(b) By chunni babu (c) To Trading a/c (d) By Trading a/c
Q.19. Trial Balance is :
(a) Statement
(b) Subsidiary Book (c) List
(d) Final Account
Q.20. The debit side of the trial balance is more than Rs 1000 the reasons are :
(a) Received Rs 500 from A, debited in his account
(b) Received Rs 1000 from Kumar, credited in the account of Kamar
(c) Salary paid Rs 1000 which has been written in the building account
(d) Rs 1000 given to Sushant, its recording in the account books omitted.
Q.21. Income tax worth Rs 5000 of the proprietor, paid by firm the account to be debited is :
(a) Income tax a/c
(b) Bank a/c
(c) Drawings a/c
(d) Expenses A/c
Q.22. Which of the following columns of cash book can have credit balance:
(a) Cash column
(b) Bank column
(c) Discount column (d) Both (b) & (c)
Q.23. Mr.X issued cheques worth Rs. 25000 in march 2006, out of which cheques worth Rs 1000 were only
presented till 31 March,2006. Dr. Balance as per cash book would be:
(a) Deducted by Rs. 1500.
(b) Added by Rs. 1500.
(c) Deducted by Rs. 1000
(d) Added by Rs. 1000.
Q.24. Closing stock in the trial balance implies that (a) It is already adjusted in the opening stock
(b) It is adjusted in the sale a/c
(c) It is adjusted in the purchase a/c
(d) None of these
Q.25. The beginning inventory of the current year is overstated by Rs 5000 and closing inventory is overstated by
Rs 12000. The net effect on the profit is :
(a) Rs 7000 (overstated)
(b) Rs 17000 (overstated)
(c) Rs 17000 (understand)
(d) Rs 7000 (understated)
Q.26. Which of the following does not increases the earning capacity of an asset?
(a) Increase in working capacity of an asset
(b) Reduction in operation costs
(c) Replacing damaged parts of an asset
(d) All of these
Q.27. Closing stock appearing in the Trial Balance, will be shown :
(a) On the credit side of profit & loss account (b) On the debit side of Trading Account
(c) On the credit side of Trading Account
(d) On the assets side of Balance Sheet
Q.28. What is the nature of Joint Venture with co-venturer's a/c
(a) Nominal a/c
(b) Real a/c
(c) Personal a/c
(d) None of these
Q.29. Bills of Exchange is written(a) By debtor
(b) By creditor
(c) By Purchaser
(d) By Bank
Q.30. The due date of after bill for two months drawn on 27th December, 2000 and accepted on 1st January 2001
will be (a) 1st March, 2001
(b) 3rd March, 2001 (c) 27th Feb, 2001
(d) 4th March, 2001
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Q.31. Under which of the following situations, is journal entry not passed in the books of the drawer ?
(a) When a discounted bill is honored by the drawee on the due date
(b) When a bill is sent to the bank for collection
(c) When a bill is renewed at the request of the drawee
(d) When a debtor accepts a bill is discounted with a bank
Q.32. In case business sends goods casually, if customer returns the goods on a subsequent date, which entry has to
be passed :
(a) Return inwards a/c
Dr
To Debtors a/c
(b) Sales a/c
Dr
To Customers a/c
(c) No entry
(d) None of these
Q.33. The normal loss is credited to :
(a) Consignment account
(b) Profit & Loss account
(c) Consignee's account (d) None of the above
Q.34. Mahesh consigned 100 units of goods on consignment costing Rs 7500 at an invoice price of 25% profit on
sales. Consignment account would be credited for loading by :
(a) Rs 1500
(b) Rs 1875
(c) Rs 2000
(d) Rs 2500
Q.35. When each co-venturer open their own accounts, the profit on joint venture is :
(a) Debited to joint venture with other co-venturer account
(b) Credited to joint venture with other co-venturer account
(c) Debited to profit & loss account
(d) Credited to profit & loss account
Q.36. A drew a bill on B for Rs 10,000 payable after 3 months. On due date, the bill got dishonored and A notified
the bill to notary public and paid Rs 100 as noting charges. B requested to A to draw a new bill of 3 months at 12%
interest. The amount of new bill will be :(a) Rs 10,000
(b) Rs 10,100
(c) Rs 10,303
(d) Rs 10,403
Q.37. Mr. X sent goods worth Rs 50,000 on sale or return basis. The goods worth Rs 30,000 were only accepted by
the customer till the year ending. What would be the adjustment of remaining goods if the goods were invoiced @
20% profit on invoice price:
(a) Deduct Rs 20,000 from sales and debtors and add Rs 16000 to closing stock
(b) Deduct Rs 20,000 from sales and debtors and add Rs 16,667 to closing stock
(c) Deduct Rs 50,000 from sales and debtors and add Rs 30,000 to closing stock
(d) Deduct Rs 50,000 from sales and debtors and add Rs 40,000 to closing stock
Q.38. The amount due to a deceased partner is paid to his :
(a) Wife
(b) Son
(c) Legal advisor
Q.39. The joint life policy account is of nature :
(a) Personal a/c
(b) Real a/c
(c) Nominal a/c
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Q.40. X, Y, Z are partners sharing profits and losses equally. They took a joint life policy of Rs 5,00,000 with a
surrender value of Rs 3,00,000. The firm treats the insurance premium as an expense. Y retired and X and Z
decided to share profits & losses in ratio 2 : 1. The amount of joint life policy will be transferred as : (a) Credited to X, Y and Z's capital accounts with Rs 1,00,000 each
(b) Credited to X, Y and Z's capital accounts with Rs 1,66,667 each
(c) Credited to X & Z's capital accounts with Rs 2,50,000 each.
(d) Credited to Y's capital account with Rs 3,00,000.
Q.41. A company purchased machinery for Rs.25, 000 on 1st January, 2005 and spent Rs. 5, 000. On its installation and
Rs.2, 500 on its Transportation. The useful life of the machine is 5 years. What will be the depreciation according to the
sum of digits method in the last year of the working life of machine?
(a)10833
(b) 2167
(c) 2000
(d) 10000
Q.42. If the machinery costing Rs. 18,000 is sold after 2 year for Rs. 16,000 and the depreciation rate is 10% per
annum on
SLM, Then the profit or loss from the sale of machine is –
(a) Rs. 3,600 (Profit)
(b) Rs. 1600 (Loss)
(c) Rs. 1600 (Profit)
(d) No profit No loss
Q.43. A machine was purchase for Rs. 50,000. The machine was depreciated @ 20% p.a. on WDV basis for 3 years.
If the
machinery is sold at a value of Rs. 25000, the profit and loss account will be debited / credited by –
(a) Rs. 600 (Cr.)
(b) Rs. 5000 (Cr.)
(c) Rs. 100 (Dr.)
(d) Rs.600 (Dr.)
Q.44. With respect to written down value method of depreciation which of the following is true:
(a) The Amount of depreciation and the rate of depreciation decrease every year.
(b) The Amount of depreciation and the rate of depreciation Increases every year.
(c)The amount of depreciation keeps increases every year while the rate of depreciation keeps decreasing
(d) The amount of depreciation decrease while the rate of depreciation remain the same
Q.45. A fixed assets has a life of 4 year. If it is depreciated by the WDV Method, Its book value at the end of 4 year
is 24 % of its original cost. Hence the rate of depreciation applied is ………..
(a)24%
(b) 25%
(c) 30%
(d)35%
Q.46. Under annuity method assets a/c is dr. by
(a) Interest A/c
(B) Depreciation Fund A/c
(c) Sinking Fund A/c (d) None of these
Q.47. A change from one method of providing depreciation to another is made only
(a) If the adoption of the new method is required by statute
(b) For compliance with an accounting standard
(c) If it is considered that the change would result in a more appropriate preparation or presentation of the
financial statement of the enterprise
(d) All of the above
Q.48. If Ashish Com.LTD. Forfeited 10 shares of Rs.10 each Rs.7 called up, 5 paid on application, the amount to be
forfeited is.
(a) Rs.50
(b) Rs.20
(c) Rs.60
(d) Rs.100
Q.49.On 100 equity shares of rs.20, the company had called – up rs.16 each but the actual amount received is rs.1,
800 the amount by which share capital will be credited is:
(a) Rs.2, 000
(b) Rs.1, 800
(c) Rs.1, 600
(d) Rs.200
Q.50. Redeemable preference shares must be redeemed within:
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(a) 5 years
(b) 10 years
(c) 15 years
(d) 20 years
Q.51. 100 equity shares of Rs.100 each were issued at a premium of Rs.10 each. The whole amount has been
called up but a share holder of 20 shares has paid on Rs.80 each share the share capital account will be credited
by:
(a) Rs.8, 000
(b) Rs.9, 600
(c) Rs.9, 800
(d) Rs.10, 000
Q.52. Following are the details of ABC lts.
Outstanding redeemable preference, Shares =3, 00,000, Premium on redemption =10%, General reserve =
rs.1, 50,000
Security premium balance = Rs.35, 000, Fresh issue of shares to be made At 10%, Discount The fees value of
fresh issued shared
will be:
(a) Rs.1, 66,667
(b) Rs.1, 50,000
(c) Rs.1, 85,000
(d) Rs. 1, 80,000
Q.53. Kapoor LTD. issued 5,000 debentures of Rs. 10 each at a discount of 10% to be redeemed at the end of 5
years from the
date of issue, the loss on issue of debenture will be written off as:
(a) Rs.5000 at the end of first year.
(b) Rs.5000 at the end of 5th year.
(C) Rs.1000 every tear.
(d) Not be written off.
Q.54.The balance sheet gives information regarding the
(a) Result of the operation for a particular period
(b) Financial position during am particular period
(c) Profit earning capacity for a particular period
(d) Financial position as on a particular date
Q.55. Computer taken on hire by a business for a period of twelve months should be classified as
(a) Fixed assets
(b) Not a asset
(c) Deferred revenue expenditure (d) Current assets
Q.56. Which of the following is a contingent liability?
(a) Uncalled liability on partly paid shares.
(b) Claims against the company not acknowledged as debts
(c) Arrears of fixed cumulative dividend
(d) All of these
Q.57.Find out cost of goods sold from the following figure:
Opening stock
Rs.10, 000,
Purchases
Direct expenses
Rs.9, 000
Indirect expenses
Closing stock
Rs.12, 000
(a) Rs.40,200
(b) Rs. 52,500
(c) Rs.58,500
Rs.45, 500
Rs.5, 200
(d) Rs.29,800
Q.58. All those companies that are registered under the companies act, 1956 are called_____companies.
(a) Public
(b) listed
(c) Statutory
(d) Registered
Q.59. The amount of capital that is mentioned in “capital clause” is known as:
(a) Authorized capital
(b) Registered capital
(c) Nominal capital
(d) All of these
Q.60. That portion of called up capital which is not received is known as:
(a) Uncalled capital
(b) Unpaid calls
(c) Reserved capital
(d) None of these
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PART-B : LAW ( 40 MARKS)
Q.61 Which one of the following does not connote 'goods' as defined in the Sale of Goods Act.
(a) money
(b) animals (c) debt
(d) both 'a' and 'c'
Q.62 If a contract of sale stipulates that price will be fixed by a third party on valuation of the goods, and
the third party shows inability to do so, then, ?
(a) the agreement is void
(b) the buyer shall pay reasonable price
(c) the buyer shall pay market price
(d) the agreement is valid
Q.63 The Sale of Goods Act, 1930 deals with (a) Cash sales
(b) Credit sales
(c) Hire Purchase Sales
(d) Sale of Goods in general
Q.64 A warranty is stipulation ;
(a) essential to the main purpose of the contract
(c) very important to the seller
(b) collateral to the main purpose of the contract
(d) very important to the buyer
Q.65 If the condition as to the title of goods is not fulfilled, the buyer?
(a) may reject the goods
(b) has no alternative but to buy the goods
(c) may reject the goods and claim damages
(d) all the above
Q.66. The general rule of Sale of Goods Act is, risk prima facie passes with (a) Ownership
(b) Possession
(c) Delivery
(d) Custody
Q.67. Which of the following is relevant for determining the passing of property in ascertained goods?
(a) Intension of Parties
(b) Delivery of Goods
(c) Payment of Price
(d) All of the above
Q.68. A share Certificate is a (a) Document of Title of Goods
(c) Document showing Title to Goods
(b) Bill of Exchange
(d) Instrument of Transfer
Q.69. Which of these is NOT a Document of Title to Goods?
(a) Bill of Lading (b) Railway Receipt
(c) Dock Warrant
(d) Bearer Cheque
Q.70. Voluntary transfer of possession from one person to another is called as (a) Ownership
(b) Delivery
(c) Gift
(d) License
Q.71. If the buyer rejects the whole quantity of goods due to short delivery or excess delivery, the contract
is treated as –
(a) subsisting
(b) cancelled
(c) void
(d) invalid
Q.72. A agrees to deliver his old car valued at Rs 80,000 to B, a car dealer, in exchange for a new car, and
agrees to pay the difference in cash it is –
(a) Contract of sale (b) Agreement to sell
(c) Exchange
(d) barter
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Q.73. If X commissioned Y, an artist, to paint a portrait of A for 200 dollars & Y uses his own canvas &
pain then it is –
(a) Contract of sale
(b) Contract of work & materials
(c) Sale on approval
(d) Hire-Purchase agreement
Q.74. Mutual agency under the Indian Partnership Act, 1932 means:
(a) Sharing of profits of the firm among the partners
(b) Rights of a partner to act as an agent and principal of other partners
(c) Mutual co-operation among partners
(d) Joint liability of all partners
Q.75. Sub-partnership arise between :
(a) Two partners of same firm
(c) A partner and a stranger
(b) Two firms
(d) None of the above
Q.76. Which of the following are grounds for compulsory dissolution of the firm by court?
(a) Insanity of a partner
(b) Misconduct of partner
(c) Perpetual losses in business
(d) All of these
Q.77. On dissolution the partners remain liable until:
(a) Public notice is given
(c) Partners dues are paid off
(b) The registrar strikes off the name
(d) Accounts are settled
Q.78. Partnership property vests :
(a) In the partners of the firm
(c) In senior partner of the firm
(b) In the firm itself
(d) In solicitor General of India
Q.79. Implied authority of any partner may be :
(a) Restricted by contract between partners
(b) Extended by contract between partners
(c) Either extended or restricted by contract between partners
(d) Can be extended but not restricted by contract between partners
Q.80. Which of the following acts are within the implied authority of a partner of a firm?
(a) Submit a dispute relating to the business of the firm in his own name
(b) Open a banking account on behalf of the firm in his own name
(c) Acquire immovable property on behalf of the firm
(d) Pledging as security, goods of the firm for loans obtained.
Q.81. A person when himself told that he is partner of the firm, then he is a :
(a) Partner by holding out
(b) Nominal partner
(c) Active partner
(d) Sleeping partner
Q.82. Which of the following is not a kind of partner :
(a) Dormant partner
(b) Partners in losses only
(c) Partner by estoppels
(d) Nominal partner
Q.83. Which of the following statement is correct?
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(a) Void agreements are always illegal
(b) Illegal agreements are voidable
(c) Illegal agreement can ratify by the illegal (d) Illegal agreements are always void
Q.84. Ram forced Shyam to enter into a contract at the point of pistol. What remedy is available to shyam?
(a) Shyam can claim for damages
(b) Shyam can repudiate the contract, as his consent was not free
(c) Shyam cannot repudiate the contract
(d) None of these
Q.85. C orally offered to pay A, an auto mechanic, Rs 50 for testing a used car, which C was about to purchases
from D. A agreed and tested the car. C paid A Rs 50 in cash for his services. Is the agreement :
(a) Valid
(b) Express
(c) Executed
(d) All of the these
Q.86. X promises a subscription of Rs 75,000 to the National Relief Fund. He does not pay. Is there any legal
remedy against him?
(a) X is not bound to perform
(b) X has to pay damages
(c) X had to perform his promise
(d) Either (a) or (b)
Q.87. In which of the following cases X cannot recover?
(a) Y gets into difficulties while swimming in the river and cries for help X hears the cry, removers his coat
and dives into water and rescues Y, who is, full of gratitude, promises to pay x Rs 200 but fails to do so.
(b) Y writes to X "At the risk of your own life, you saved me from a serious motor accident. I promise to pay
you Rs 1000. "
(c) X finds Y's purse and gives it to him.
(d) X, who is Y's friend, seeks the help of a few person in putting down a fire in Y's house. Y promises to
give Rs 100 for his timely help.
Q.88. A being in dire need of money, sells his new car purchased two months ago at a cost of Rs 3,55,000 for Rs
1,50,000. Afterwards A seeks to set aside the contract on the ground of inadequacy of consideration. Will he
succeed?
(a) Yes, as the contract is void
(b) Yes, as the consideration is inadequate
(c) No, as the consideration may be inadequate (d) Either (a) or (b)
Q.89. A finds B's purse and gives it to him. B promises to give A Rs 100. Can A claim the money ?
(a) Yes, A can claim the money
(b) No, A cannot claim the money
(c) Either (a) or (b)
(d) None of these
Q.90. A contract entered into by a minor is :
(a) Voidable at the option of the minor
(b) Void ab initio
(c) Voidable at the option of either party
(d) Valid and binding
Q.91. A supplies some articles of food to B, the wife of C who is a lunatic. C has assets worth Rs 8000. On nonpayment, can A proceed against the assets of C ?
(a) Yes, A can proceed against the assets of C
(b) No, A cannot proceed against the assets of C .
(c) No, A cannot proceed, as the contract is void
(d) None of these
Q.92. 'A' takes an insurance policy on his life making a false statement about his health and does not disclose the
fact that he has been treated for serious illness. In this case which one of the following statement is correct?
(a) The contract is void
(b) The contract is unenforceable
(c) Contract is voidable on the ground of fraud (d) The contract is unlawful
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Q.93. A master asks his servant to sell his cycle to him at less than the market price. The contract can be avoided by
the servant on the ground of :
(a) Coercion
(b) fraud
(c) Mistake
(d) Undue influence
Q.94. Anta sold some land to Banta. At the time of sale both parties believed in good faith that the area of the land
sold was 10 hectares. It, however, turned out that the area was 8 hectares only. How is the contract of sale affected?
(a) The agreement is void
(b) The agreement is voidable
(c) The agreement is enforceable
(d) The agreement is unenforceable
Q.95. An agreement is void if it is opposed to public policy. Which of the following does heads of public policy not
cover?
(a) Trading with an enemy
(b) Trafficking in public offices
(c) Marriage brokerage contracts
(d) Contracts to do impossible act
Q.96. Agreements, which are in the nature of bets and gambling, are called (a) Invalid agreements
(b) Voidable contracts
(c) Contingent contracts
(d) Wagering agreements
Q.97. A promises to paint a picture for B by a certain day at a certain price. A dies before the day. Which one of the
following is the correct legal position?
(a) The agreement does not lapse and can be confirmed by or against the legal representatives of A
(b) The agreement becomes voidable at the option of A's legal representatives
(c) The agreement lapses for both the parties
(d) The agreement becomes unlawful
Q.98. X lent to Y three sums of Rs 1000, Rs 2000 and Rs 5000. Y sent a sum of Rs 1000 asking X to appropriate
this money towards the third debt of RS 5000. X wants to appropriate this money to the first loan. Can he do so?
(a) Yes
(b) No
(c) Can't say
(d) Either yes or no
Q.99. A agrees to pay B a sum of money if a certain ship does not return. The ship is sund\k. A refuse to pay.
Advise B.
(a) B can enforce the contract when the ship sinks
(b) B cannot enforce the contract when the ship sinks
(c) B can claim damages
(d) None of these
Q.100. A pays some money to B by mistake. It is really due to C. Can C recover the amount from B?
(a) No, as there is no priority of contract between B and C
(b) No, but A can recover the amount from B
(c) Yes, C can recover the amount from B
(d) Both (a) and (b)
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PAPER – 2 PART-A : ECONOMICS (50 MARKS)
Q.1. Basic assumption of ordinal approach are –
(a) Rank different combination of goods (b) Consumer behaviour is constant
(c) Consumers have preferences
(d) All the three
Q.2. Public debt is considered burdensome when –
(a) It has a very low rate of interest
(b) It is from a foreign bank
(c) It is used for unproductive activities
(d) It has a very long repayment schedule
Q.3. The income of the government through all its sources is called(a) public expenditure
(b) balanced budget
(c) unbalanced budget
(d) none of these
Q.4. In Socialist economy, price mechanism is:
(a) Dual Price system
(b) Market price system
(c) There is no price mechanism (d) Administrative price control
Q.5. The government policy to check inflation has been –
(a) public distribution system
(b) action against hoarders smugglers and black marketers
(c) fiscal and monetary measure to increase the supply of essential
(d) all of the above
Q.6. Which among the following market structure has the highest price elasticity ?
(a) Pure competition
(b) Oligopoly (c) Monopolistic competition (d) Monopoly
Q.7. Which of the following results in a shifting of the demand curve?
(a) An increase in the tax on cigarettes leading to their fall in demand
(b) Slashing of ad rates by a television channel resulting in a rise in number of ads
(c) A Rise in the electricity charges leading to lesser consumption (d) None of these
Q.8. if the price of apples rises from Rs.30 per kg to Rs.40 per kg and the supply increases from 240 kg to 300 Kg.
Elasticity of supply is:
(a) 0.75
(b) 0.67
(c) 00.67
(d) 00.77
Q.9. A firms AFC is Rs.200 at 10 units of output what will be it at 20 units of output?
(a) 500
(b) 100
(c) 150
(d) 200
Q.10. Which of these is not factor of quantity supplied –
(a) Price of the goods
(b) Price of the related goods (c) Cost of Production (d) Consumers disposal income
Q.11. If price of X falls leading to increase in total demand to change in price is called.
(a) Elastic
(b) Inelasticity (c) Unitary Elastic
(d) Less than unit elastic
Q.12. In calculating GNP which of the following should be excluded?
(a) Rental incomes
(b) Interest payments (c) Dividends
(d) Government transfer payments
Q.13. Which one of the following measures can be taken to modernize agricultural sector?
(a) development of transport system
(b) Development of rural industries
(c) Social welfare service
(d) all of the above
Q.14. Disguised unemployment means :
(a) People are underemployed
(c) People are employed but their productivity is nit or negative
(b) People are employed but have no work
(d) None of the above
Q.15. Average revenue curve should be kinked in –
(a) duopoly
(b) monopoly (c) collusive oligopoly (d)non-collusive oligopoly
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Q.16. Which of the following features is not associated with a monopoly market structure ?
(a) There is only one seller in the market (b) There are no close substitutes for the product
(c) There are barriers to entry
(d)There are no close complements for the product
Q.17. Which of the following is not a fixed cost ?
(a) Payment of interest on borrowed capital
(c) Depreciation charges on equipment and buildings
(b) Charges for fuel and electricity
(d) Contractual rent for equipment or building
Q.18. The slope of an isoquant measures –
(a) Returns to scale
(b) The marginl rate of technical substitution
(c) Income effect on demand
(d) None
Q.19. Which of the following statement is incorrect ?
(a) Land is a free gift of nature
(b) Land is passive factor of production
(c) The quantity of land is unlimited
(d) Modern economists described the concept of ‘land element’
Q.20. What does the upward slope of the aggregate supply curve depict?
(a) Increase in price reduces supply
(b) Decrease in price increases supply
(c) Increase in price increases supply
(d) Supply remains constant irrespective of change in price
Q.21. Which of the following utility approaches suggests that utility can be measured and quantified?
(a) cardinal
(b) Ordinal
(c) Both cardinal and ordinal
(d) Neither of the approaches makes any such suggestion
Q.22. A movement along given indifference curve is known as –
(a) income effect (b) price effect
(c) substitution effect
(d) None of these
Q.23. The law of demand is the one which(a) can be completely discarded
(b) has numerous exemptions and therefore not helpful
(c)cannot be verified and therefore unrealistic
(d)is of fundamental importance and leads to broad conclusions
Q.24. Production doesn’t consist of which of the following activities ?
(a) Changing the form of natural resources
(b) Changing the place of the resources
(c) Both of the above
(d) None of these
Q.25 . Which of the following statements regarding elasticity of demand as true?
(a) Elasitcity can be positive or negative
(b) Elasticity always has a negative value
(c) Elasticity always had a positive value
(d) Elasticity can never be zero
Q.26. In which of the following type of product, is the elasticity of supply lowest?
(a) Necessities
(b) Luxury goods
(c) Perishable goods (d) Perfect substitutes
Q.27. Breakeven point for a firm occurs where –
(a) total revenue>total cost
(b) total revenue<total cost
(c) total revenue = total cost
(d) none of the above
Q.28. When the production increases, the average fixed cost will decrease in –
(a) long period
(b) short period
(c) always
(d) none of these
Q.29. Which of the following types of competition is just a theoretical economic concept, not a realistic case where
actual competition and trade take place?
(a) Monopoly
(b) Oligopoly
(c) Perfect competition
(d) Monopolistic competition
Q.30. Indian economy is defined as a developing economy because –
(a) most of the people depend on agriculture
(b) industries have not been spreading rapidly
(c) labor is abundant and capital is scarce
(d) per capital income though small in relation to developed countries is slowly increasing
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Q.31. According to the census report 2011 female literacy rate in India is –
(a) 2.74%
(b) 54.16%
(c) 65.5%
(d)39.29%
Q.32. When poverty is taken in relative term and is related to the distribution of income or consumption expenditure it is
called –
(a) Low line Poverty
(b) Absolute Povery (c) Relative Poverty
(d) None
Q.33. According to current weekly status measure a person is said to be employed for the week even if he is employed
only for a day during the week.
(a) True
(b) False
(c) Partly true
(d) None
Q.34. Which one of the following statements, about the Indian Railways is correct?
(a) It is the largest railway system in the world
(b) It is second largest railway system in the world
(c) It is the third largest railway system in the world
(d) It is the fourth largest railway system in the world
Q.35. The sources of finance available to the government may be broadly classified into –
(a) domestic budgetary sources (b) foreign assistance
(c) deficit financing
(d) all of the above
Q.36. How should the government respond when the economy is facing a depression ?
(a) Increase public expenditure
(b) Reduce public expenditure
(c) Increase direct tax
(d) Increase indirect tax
Q.37. Balance of payment works on –
(a) Single entry system
(b) Double entry system
(c) Compound entry system
(d) None of the above
Q.38. What should firm do if total revenue from its product does not equal or exceeds its total variable cost?
(a) Firm should carry production (b) Firm should stop the production
(c) Firm should carry production and at least try to get revenues equal to fixed cost
(d) None of these
Q.39. 100 percent privatization has taken place in India of –
(a) CMC Limited (b) Maruti Udyog Limited
(c) Centaur Hotel (d) Videsh Sanchar Nigam Ltd.
Q.40 Money is most liquid of all the assets because –
(a) it is readily convertible into other assets
(b) it can be easily stored
(c) it gives income to the holder
(d) it has no carrying cost
Q.41. The type of note issue system followed in India is the –
(a) maximum fiduciary system
(b) minimum reserve system
(c) proportional fiduciary system
(d) fixed fiduciary system
Q.42. The price under monopoly is greater than:
(a) Marginal Product
(b) Marginal cost
(c) Total cost
(d) Average Revenue
Q.43. The banks are required to maintain a certain ratio between their cash in hand and total assets, this is called –
(a) DLR (Dental Liquidity Reserve) (b) SLR (Statutory, Liquidity Ratio)
(c) SBR (Statutory Band Ratio)
(d) CBR (Central bank Reserve)
Q.44. On which of the following the effective demand for a thing depends –
(a) Desire
(b) Means to purchase
(c) Willingness to use those means
(d) All of these
Q.45. Production includes –
(a) Mining
(b) Manufacturing
Q.46. Which of the following firm is an oligopolist –
(a) Mobile Industry
(b) Cold drink
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(c) Services providing
(d) All of the above
(c) Automobile
(d) All of these
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Q.47. “Money is what money does”. Who among the following gave the definition of money?
(a) Crowther
(b) Engine
(c) Bustein
(d) Walker
Q.48. Which among the following is NOT a cause of sickness of industrial units in India?
(a) Obsolescent techonology
(b) Labour problems
(c) Faulty location
(d) Lack of capital account convertibility
Q.49. Price Discrimination is possible only when.
(a) Seller is alone
(c) Market is controlled by the government
(b) Goods are homogeneous
(d) None of the above
Q.50. Price rigidity is a situation found in which of the following market forms ?
(a) Perfect competition
(b) Monopoly
(c) Oligopoly
(d) Monopolistic competition
PART-A : MATH1S & STATS (50 MARKS)
Q.51 For the mid-values 4, 8, 12, 16, 20 the first class of the distribution is :
(a) 0-8
(b) 1-7
(c) 2-6
(d) none of them
Q.52 Class interval is measured as :
(a) the difference between upper and lower limits
(c) half of the difference between upper and lower limits
Q53. The following series is of the type of
Place
Population
A
15,00,000
B
20,00,000
C
30,00,000
D
40,00,000
(a) Discrete
(b) Industrial
(b) half of the sum of lower & upper limits
(d) the sum of the upper and lower limits
(c) Geographical
Q.54. Sum of square of the deviations about mean is :
(a) Zero
(b) Minimum
(c) Maximum
Q.55. If the two observations are 7 and -7, their geometric mean is :
(a) 7
(b) -7
(c) 0
(d) Time series
(d) none of the above
(d) none of the above
Q.56. The co-efficient of quartile deviation from the following observations is :
10, 18, 20, 28, 15, 17, 22, 25, 29, 32, 34
(a) 0.26
(b) 0.16
(c) 0.06
(d) 0.36
Q.57. The C.V of a distribution is 80% and the mean of the distribution is 40, the S.D of the distribution is :
(a) 33
(b) 32
(c) 35
(d) 0.30
Q.58. Which of the following is a unit less measure of dispersion ?
(a) Quartile deviation
(b) Mean deviation (c) Coefficient of variation (d) Range
Q.59. The rank correlation co-efficient between marks in statistics and marks in accountancy of 10 students is 0.4.
Later on its was noticed that the difference in ranks of a student was taken as 3 instead of 7.
The correct value of the correlation co-efficient is (a) -0.4
(b) 0.94
(c) 0.15
(d) 0
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Q.60. For a bivariate sample n =16, r =0.8, the Probable error of r is (a) -0.06
(b) 0.06
(c) -1
(d) 1
Q.61. If r is simple correlation, the quantity (1-r2) is called :
(a) Coefficient of determination
(b) Coefficient of non-determination
(c) Coefficient of alienation
(d) None of the above
Q.62. The means of x and y are 16 and 20 respectively. Their standard deviations are 6 and 8 respectively.
The correlation co-efficient between them is 0.6. The equation of regression line of y on x is (a) y=7.2 + 0.8x
(b) y = -7.2 + 0.8x
(c) y= 7.2 -0.8x
(d) y= -7.2 – 0.8x
Q.63. If the two lines of regression are x + 2y-5 =0 and 2x+3y-8=0, the means of X and Y are(a) -3, 4
(b) 2, 4
(c) 1, 2
(d) none of the above
Q.64. If Laspeyre's price index is 324 and Fisher's ideal index is 216, then Paasche's price index is (a) 234
(b) 180
(c) 216
(d) none of the above
Q.65. The Drobish-Bowely price index formula is the :
(a) geometric mean of Laspeyre's and Paasche's price index formulae.
(b) Arithmetic mean of Laspeyre's and Paasche's price index formulae
(c) Weighed mean of Laspeyre's and Paasche's price index formulae (d) none of the above
Q.66. The index number of base year is 100.
(a) Yes
(b) No
(c) May be
(d) none of them
Q.67. Two events are said to be independent if :
(a) both the events have only one point
(c) one does not affect the occurrence of the other
(b) there is no common point in between them
(d) each outcome has equal chance of occurrence
Q.68. A card is drawn at random from a pack of 52 cards, the probability of getting a queen is(a) 1/4
(b) 1/52
(c) 1/13
(d) 4/13
Q.69. The mean of Binomial distribution is 4 and its variance is 2.4, the value of p is :
(a) 0.4
(b) 0.5
(c) 0.3
(d) 0.2
Q.70. x is a Poisson variate and P (x=1) = P(x=2), find p (x=0) is :
(a) e-2
(b) e-0.5
(c) e-1
(d) none of them
Q.71. What percentage of values will be within μ ± σ when the characteristic follows a normal distribution?
(a) 95.45
(b) 68.26
(c) 99.73
(d) none of them
Q.72. Systematic sampling means :
(a) selection of n continuous units
(c) selection of n largest units
(b) selection of n units situated at equal distances
(d) selection of n middle units in a sequence
Q.73. The errors in a survey other than sampling errors are called :
(a) sampling errors
(b) planning error
(c) non-sampling error
(d) none of the above
Q.74. If sample mean is 20, population standard deviation is 3 and sample size is 64, the 95% confidence interval
estimate of mean is :
(a) 22.5 to 25.5
(b) 20 to 22.5
(c) 19.3 to 20.7
(d) none of them
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Q.75. If N numbers are drawn at random without replacement from the set {1,2,……m} then var ( x ) would be :
(a) (m-1) (m+n)
(b) (m-1) (m+n)
(c) (m+1) (m-n)
(d) (m-1) (m+n)
12
12m
12n
12n
Q.76. If A: B = 3 : 2 and B : C = 3 : 5 then A : B : C is –
(a) 9 : 6 : 10
(b) 6 : 9 : 10
(c) 10 : 9 : 6
Q.77 [ 1- {1- (1-x2)-1}-1 ]-1/2 is equal to –
(a) x
(b) 1/x
(c) 1
(d) none of these
(d) none of these
Q.78. The sum of the digits in a three digit number is 12. If the digits are reversed the numbers are increased by
495 but reversing only 10th and unit digit increases the number by 36, the number is –
(a) 327
(b) 372
(c) 237
(d) 273
Q.79. Find the equation of the line passing through the point (2, -2) and point of intersection of the line 2x+3y -5 =0
and 7x-5y-2 =0 is –
(a) 3x-y-4=0
(b) 3x+y -4 = 0
(c) 3x+y+4= 0
(d) none
Q.80. The difference between the C.I and S.I on a sum of Rs 18000 in 2 years was Rs 405 what was the rate
percent per annum.
(a) 5%
(b) 10%
(c) 15%
(d) none of these
Q.81. A machine is depreciated at the rate of 20% on Reducing Balance. The original cost of the machine was Rs
100000 and its ultimate scrap value was Rs 30,000 the effective life of machine is .
(a) 4.5 years
(b) 5.4 years
(c) 5 years
(d) none of these
Q.82. Y bought a T.V costing Rs 13000 by making a Down payment of Rs 3000 and agreeing to make equal annual
payment for four years. How much would be each payment. If the Interest on unpaid amount be 14% compounded
Annually it is given that P (4, 0.14) = 2.91371
(a) 3032.05 (b) 3132
(c) 3000
(d) 3432.05
Q.83. If A {1, 2, 3, 4} f = {(1,4) (2,1)(3,3) (4,2)} g = {(1,3) (2,1) (3,2) (4,4)} find fog.
(a) {(1,3) (2,4) (3,1) (4,2)} (b) {(1,2) (2,3) (3,2) }
(c) {(2,4) (3,1) (4,2) } (d) none of these
Q.84. In a survey of 600 students in school 150 students were founds to be drinking tea and 225 drinking. Coffee
100 were drinking both tea and coffee. Find how many students were drinking neither tea nor coffee.
(a) 325
(b) 225
(c) 335
(d) none of these
Q.85. lim √x2 +7x-x
x→∞
(a) 7/2
(b) 5/2
(c) 3/2
(d) none of these
Q.86. Find the value of a and b so that the function f is given by –
1
if x ≤ 3
f(x) = ax+b
if 3 <x <5
7
if x ≥ 5
(a) 3, -8
(b) -3, 8
(c) 3, 8
(d) -3, -8
Q.87. lim (√x(x+b)-x) is equal to x→∞
(a) b/2
(b) a/2
(c) ab/2
(d) none
Q.88. If y =2x3 then dy/dx is equal to –
(a) 2x3.log2.3x2
(b) 3.2x3
(c) 3x2.2x3
(d) none of these
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Q.89. If y = √x +√x+√x+ + ∞ , then value of dy/dx is equal to –
(a) 1/2y-1
(b) 1/2y+1
(c) 2y+1
(d) none of these
Q.90. ∫ dx
x(x5+1)
(a) log x5 + C
x5+1
(b) 1 log
x5 + C
5
x5+1
(c) 1 log
x5 +1 + C
5
x5
(d) log x5 +1 + C
x5
Q.91. a∫b f(x) d x
f(x) +f(a+b-x)
(a) b-a/2
(b) a-b/2
Q.92. 0∫1 log (1/x-1) dx
(a) 0 (b) 1
(c) 2
(c) b-a
(d) none of these
(d) 3
Q.93. The number of ways that 5 students can be made to sit in a row so that the tallest and shortest may not come
together is –
(a) 48
(b) 24
(c) 72
(d) 120
Q.94. The number of committees of 5, consisting at least one female member, that can be formed from 6 males and
4 females is –
(a) 246
(b) 252
(c) 6
(d) none of these
Q.95. The inequalities x < 0, y >0 represents(a) first quadrant
(b) second quadrant
(c) Third quadrant
(d) fourth quadrant
Q96. The ratio between the sum of n terms of two A.P's is 3n +8:7 n+15. Then the ratio between their 12th terms is
(a) 5 : 7
(b) 7 : 16
(c) 12 : 11
(d) none
Q.97. If a1 , a2, a3 …..an are in A.P where ai >0 for all i, then the value of
1/√a1 +√a2 + 1/√a2 +√a3 + ……. 1/√an-1 +√an is –
(a) 1/√a1 +√an
(b) 1/√a1 -√an
(c) n/√a1 -√an
(d) n-1/√a1 +√an
Q.98. The value of 81(1/log53) + 27 log936 + 34/log79 is –
(a) 49
(b) 625
(c) 216
(d) 890
Q.99. The value of log32log43log5 4 ….. log15 14log16 15 is –
(a) ½
(b) 1/3
(c) ¼
(d) 1
Q.100. 2a =4b = 8c and abc = 288 then the value of 1/2a+1/4b + 1/8c is given by
(a) 1/8
(b) – 1/8
(c) 11/96
(d) - 11/96
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