SSB Odisha Lecturer 2018: Lecturer recruitment for non-government aided colleges, Commerce
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NOT OPEN THIS TEST BOOKLET UNTIL YOU ARE ASKED TO DO SO
TEST BOOKLET sr. No.
92g30
Subject Code : 05 Subject : Commerce
LECTURERS FOR NON-GOVT. AIDED COLLEGES OF ODISHA
TimeAllowed:3 Hours Maximum Marks : 165
: INSTRUCTIONS TO CANDIDATES :
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3. The Test Booklet contains 165 questions. Each question comprises four answers. You
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RS - 12t23 (Tum over)
20tg
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1 What is not the example of 3. What is not a method of preparing
convention of consistency ? trialbalance ?
(A) The valuation of stock at cost (A) Compound method
'or market price whichever is (B) Balance method
less (C) Totalmethod
(B) Valuation of investment at (D) Dualbalancertethod
market price or cost whichever 4 Which of thefollowing isTRUE about
is less a mqrchandising company ?
(C) Change of methods of (A) A merchandisihg company's
charging depreciation due to' business is tO buy and sell
products
change in expected life of an
asset or any other reason
(B) A merchandising company
. must use the perpetual system
(D) Charging of depreciation or
to account for merchandising
expired cost.to profit and loss
inventory
'account
(C) A merchandising company's
2. Which is/are accounting concept ? businesS is to provide serviees
(a) Verifiabilityandobjectivity (D) A merchandising company can
do any business
(b) Materiality
(c) Consistency 5. Sale of goods to Amir is wrongly
debited to UmairA/c instead ofAmir
(d) Dualaspect
A/c. Both are debtors of business,
(e) Fulldisclosure this is an example of :
(A) candbonly (A) Error of omission
(B) aanddonly (B) Error of cdmmission
(C) a, e and c (C) Error of principle'
(D) dandeonly (D) Erroroforiginalentry
RS - 12t23 (2) Contd
8t os
Text of page 3
b. Which of thefollowing statements (in 8 Which of the following opinions state
general) is CORRECT ? that the financial statements do not
present fairly the financial position,
(A) A low receivable turnover is
results of operations etc, in
desirable
conformitywith GAAP ?
(B) The lower the debit-to-equity
(A) Unqualified opinion
ratio, the lowerfinancial risk for
(B) Adverse opinion
a firm
(C). Qualified opinion
(C) An increase in net profit margin (D) Disclaimer of opinion
with no change in sales or
9 Which ratio explains that how much
assets means a weaker ROI
portion of earning is distributed in the
(D) The higherthetax rate fora firm, form of dividend ?
the lowerthe interest coverage
(A) Equity-Debit ratio
ratio
(B) Pay-out ratio
7 Office supplies are purchased on (C) Earning Veld ratio
account. The company uses a (D) Dividend-Debtratio
perpetual inventory system. What is
10. Assertion (A) : The liability of
the correct journal entry for this shareholders in a private limited
purchase of office supplies ? company is limited to the amount.
(A) Debit - purchases ; Credit - Reason (R) : The numb.er of
cash shareholders of a private iimited
company is limited to fifty.
(B) Debit- Merchandise inventory;
(A) Both A and R are true but R is
Credit - Cost of good sold
correct explanation of A
(C) Debit- Office supplies; Credit
(B) Both A and R are true but R is
-Account payable not correct explanation of A
(D) Debit- Merchandise inventory; (C) A is true R is false
Cred it - Account payable (D) R is trueA is false
RS - 12123 (3) (Turn over)
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11. The legal process of formation of a (B) Vendor
company is called
(C) Subsidiary
(A) lncorporation
(D) Contributory
(B) Liquidation
(C) Winding up 15. lf the gross profit is Rs. 5,000 and net
(D) Absorption profit is25% of the gross profit, the
expense will be :
12. A person Who is appointed to conduct
the proceedings of winding up is tnl Rs.3;750
called (B) Rs. 1,250
(A) Executor (c) Rs.4,150
(B) Registrar (D) Rs.6,250
(C) Liquidator
16. Conversion Cost = direct labor +
(D) Vendor
(A) Labor -
13. When one or more existing
(B) F. O. H
companies go into liquidation and
some existing company buys the (C) Material .. .1J l-
business, it is known as (D) None of these
(A) External reconstruction
17. On a multiple-step income statement,
(B) Liquidation -.
the excess of net sales over the cost
(C) Absorption
of mercha'ndise sold is called :
(D) Amalgamation
(A) Cost of good sold
14 is a person who is liable
(B) Net profit
to contribute to.the assets of the
company in the case of winding up.
(C) Gross Ftcifn" irjr dlcrfi rl)r
(A) Liquidator (D) Operating income
RS - 12t23 (4) Contd.
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18. Which of the following cost is used 21. Which of the following statements
in the calcu{ation of cost Per are false about management
accounting ?
unit ?
(a) Management'accounting
(A) Total productioncost
ls concerned with
(B). Cost of goods available for historical events
sale (b) Managementaccounting
(C) Costof goods rnanufactured is related onlY with such
ihstances which can be
. (D) Cost of goods sold .
expressed in monetary
19. The term management accounting terms
was first coined in : (c) Managementaccounting
(A) 1e60 is a part of Financial
Management
(B) 1eso
(d) Managementaccounting
, (c) 1e45 information can be
(D) 1e55 disclgsed to outsiders
20. The managementaccounting can be (A) (a), (b) and (d)
stated an extension of :
(B) (a), (c) and (d)
(C) (a), (b) and (c)
(a) CostAccounting
(D) (a), (b), (c) and (d)
(b) FinancialAccounting
22. Sum payable based on outputtothe
(q) ResponsibilityAccounting
. ownerfor use of right vested to him :
(A) Both (a) and (b)
(A) Rent
(B) Both (a) and (c) (B) Royalties
(C) Both (b) and (c) (C) lnterest
(D) (a), (b) and (c) (D) None ofthese
RS - 12123 (5) ( Turn over )
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23. If X and Y are sharing profits in the 27. ln case of holding company
ratio of 3 : 2, admit Z to one-third accounts, liability in respect of bills
share in the future profit, the profit-
discounted is a :
sharing ratio will be :
(A) Contingent liability
xYZ
(B) Current liability
(A) 2t5 4t1s 1t3
(c) Long-term liability
(B) 3t5 .2t5 2t15
(c) 4t15 3t15 2t15
(D) lntangible liability
(D) Equally 28. Opportunity cost helps in :
24. Contract costing is a method of (A) Ascertainmentofcost
costing and is categorized as : (B) Controlling cost
(A) Specific order costing (C) Managerialdecision
(B) Continuous order costing (D) Ascertainment of profit
(C) Direct costing
29. The process of managing the sales
(D) Uniform costing
ledger of a client by a financial service
25. Window dressing is associated company is :
with:
(A) Forfeiting
(A) Current ratio
(B) Factoring
(B) Quick ratio
(C) Debt-equity ratio (C) Leasing
(D) Proprietary ratio (D) Securitization of debt
26. Clear profit is a.concept applicable 30. Variance.frorn standards may be the
to: result of :
(A) lnsurancecompanies (A) Change in volume
(B) Public utility companies (B) Change in efficiency
(C) Banking companies (C) Change in management
(D) Petroleumcompanies (D) Neithervolumenorefficiency
RS - 12123 (6) Contd.
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31. Value engineering stresses upon : (C) Offerer
(A) Profitmaximization (D) Stranger
(B) Human relation 35. An acceptance with a variation is
(C) Method study nothing but a :
(D) Functionalanalysis (A) Counteroffer
32. Red ink interest is noted in which (B) Specific offer
one of the following :
(C) Public offer
(A) Current account
(D) Private offer
(B) Account current
36. Where a guardian is appointed for a
(c) Capital account
minor, he becomes major on
(D) Cash account
completing:
33. A statement which emerges afterthe (A) 16 years
marshaling of entries relating to'a
(B) 18 years
person, an assets or item of
(C) 21 years
expenses or income for a particular
period is known as :
(D) l4years
(A) Accounts 37. A false statement of facts made
(B) Ledger without any intention to deceive the
I
(c) Accounting other party falls under the category
(D) Posting
of:
(A) Fraud
-34. Who does not makes or accepts any
offer,fora contract?
(B) Goercion
(C) Misrepresentation
, (A) Proposer
(B) Promisor (D) Undue lnfluence
RS - 12123 (7) (Turn over)
Text of page 8
38. An illegal agreement is void. 42. Which of the following is not an
However, a collateral transaction of implied condition in a contract of
' sale ?
an illegalagreement is:
(A) Condition as to title
(A) Valid
(B) Condition as to freedom from
(B) Voidable
encumbrance
(C) Void ' (C) Condition as to description
(D) Legal (D) Condition as to a sample
39 means a substitution of 43. A banking partnership business can
a new contract forthe original one. have:
(A) Rescission (A) Not more than 10 partners
(B) Novation (B) Not more than 20 partners
(C) Remission (C) Not more than 50 partners
(D) Any number of partners
(D) Cancellation
44. Current accounts of the partners
40 agent occupies the
should be opened when the capitals
position of both a guarantor and an
are:
agent.
(A) Fluctuating
(A) General (B) Fixed
(B) Auctioneer (C) Eitherfixed orfluctuating
(C) Delcredere (D) None of these
(D) Factor 45. What is the time span within which
company shall hold the first meeting
41. The term "goods" forthe purpose of
of the Board of Director, of the date
sale of.goods act, does not include :
of its incorporation :
(A) Money (A) 7 days
(B) Actionable claims (B) 10 days
(C) lmmovable property (C) 15 days
(D) Stock (D) 30 days
RS - 12t23 (8) Contd
Text of page 9
46. Who is an independent director in (B) Sec. 14
relation to a company ?
(C) Sec. 54
(A) Person of integrity
(D) Sec.64 r
(B) Possesses relevant expertise
(C) Not a promoterof the company 50. What is the maximum duration till
. or its holding which auditors are appointed ?
(D) One of the ministers (A) 2 years
47. What is the first stage of formation of (B) 5 yeqrs
a company ?
(C) 6 years
(A). Registration
(D) '10 years
(B) lncorporation
(C) Promotion 51. What is the maximum age limit for
whole-time director ?
(D) Capitalsubscription
(A) 65 years
48. What is the ftaximum fine
' applicable for every person who is (B) 68 years
knowingly a party to the issue of (C) 70 years
prospectus without registration ?
(D) 75 years
(A) Rs.50,000
(B) Rs. 1,00,000 52 Which of the following are the
rules, regulation and bye-laws for
(C) Rs.2,50,000.
governing the internal affairs of the
(D) Rs.3,00,000
company ?
49. Which section of the company
empowers a private company to
(A) Companyvision
convert into pfQlic company (B) Memorandurn of association
voluntarily (c) Articles of association
(A) Sec.34 (D) Company HR Policy
RS - 12t23 (e) (Turn over)
Text of page 10
53. What is the duration given to a (B) Theapprovalofboth,the Board
company after incorporation to wind . of Directors of NSDL and thqt
up, if it fails to commence business ? ofSEBl
.tA) 3 months (C) The approval of the Board of
(B) 6 months Directors of NSDL only
(C) 9 months (D) The approvalof SEBI only
(D) One year 57. The Delivery lnstruction Slip is to be
54. When a public company has issued submitted by the investor to his DP
prospectus without receiving the in
minimum subscription it is called (A) Duplicate, one eStra for
'acknowledgement
(A) Splitting of allotment (B) No such requirernent
(B) Return of allotment (C) Singte copy
(c) Renunciation of allotment (D) Triplicate, one for acknow- "
(D) lnegularallotment ' .ledgement and other for
55. The minutes of .the shareholder's sendins::
It:: ,i),$ ,:; i r,
meeting are to be kept at. the 58. Fora companyaccessing the capital
office of the company market for the first time need to
and must be open to inspection.
adhere:
(A) Registered (A) No restrictions
(B) Divisional (B) Norms prescribed by the
(C) Head Department of Company
(D) Noneof these Affairs
56. Amendments to NSDL Bye-Laws (C) RBI stipulated restrictions
require (D) Eligibility requirements
(A) No approvals prescribed by SEBI
RS - 12t23 ( 10 ) Contd
Text of page 11
59. ln the context of dividend distribution, in case of cash corPorate
what is the fullform of ECS ? benefits ?
(A) Electronic Credit SYstem (A) No, this facility is not available
(B) Extended Clearing SYstem in case of dematerialised
securities
(C) Electronic Clearing SYstem
(B) Yes, however investor has to
(D) Extended Credit SYstem
provide MICR code to the DP
60. ln the lnternational Securities (C) Yes, but onty tor sensex scriPts
ldentification Number (lSlN), the first and by a written request to the
two letters stand for which of the lssuing Co.
following ?
(D) Yes, bY a written request to
(A) Thecountrycode NSDL, provided the issuing
(B) Nameofthecompany Co. is providing this facilitY
(C) The term of the securitY 63. What is'shut period' ?
(D) ThetypeofthesecuritY (A) lt is the period during which a
company shall stop registering
61. To provide legal counter-party
guarantee eliminate the risk, transfer of the securities
is created (B) lt isthe period during which the
(A) Disclosure and Risk Stock Exchanges wili not
operate
ManagementCell
(B) A Settlement Guarantee Fund (C) lt ib the period when NSDL
shuts it operations
(C) A Market Regulation Committee
(D) lt is the period applicable to
(D) An lnvestor Protection Fund
government securities, during
62 Can an investor holding dematrarialised which RBI will not register
securities, apply for ECS facility transferof securities
RS - 12123 ( 11 ) ( Turn over )
Text of page 12
&1. SEBI, the capital market regulator, 66. The pay-in and pay-out dates forthe
settlement calendar is declared :
(A) ls a division of the Ministry of (A) By SEBI
Finance
(B) As perthe Securities Contract
(B) Has been set-up by self-
RegulationAct, 1957
regulatory bodies like AMFI,
AMBI, Stock Exchanges -etc, to
police the capitalmarket ' (D) By the r;e.spe-qtive, Stggk
(C) .ls an autonomous body set-up
under an Act of Parliament
67. ln graphical representation of LPP
a
(D) Was set up by the Govemment the bounded region is known as
of lndia to meet the regron
requirements stipulated by
(A) Solution
tosco
(B) Basic soluction
65. The DP-ClientAgreement
(C) Feasible solution
(A) ls uniform across dps but, does
-. (D) Optimal
not form a part of NSDL Bye-
Laws 68. Linear programming model which
(B) ls uniform across dps, forms a involves funds allocation of limited
part of NSDL Bye-Laws and investment is classified as
has been approved by SEBI a
(A) Ordinance budgeting model
(C) ls optional and may or may not
(B) Capital budgeting models
be signed depending on the
(c) Funds investment models
rapport between DP and client
(D) Varies from DP to DP (D) Funds origin models
RS - 12123 (12) Contd
Text of page 13
69. ln simplex method basic solution set (B) At leasttwo
as (n-m), all variables other than (C) At leastthree
basic are classified as :
(D) Any numbers
(A) Constantvariable
73. Which of the following is not an
(B) Non-positivevariables
inventory ?
(C) Basic variables
(A) Machines
(D)' Non-basicvariable
(B) Raw material
70.'" Thb linearfunction of variables which
(C) Finished products
is to be maximized or minimized is
called (D) Consumable tools
(A) Constraints 74. The cost of insurance and taxes are
(B) Objectivefunction included in :
(C) Basic requirements (A) Cost of ordering
(D) Any numbers (B) Set up cost
71. A constraint in an LP model (c) lnventorycarrying cost
.:,1,;. ' i
'
restricts:
(D) Cost of shortages
(A) Values of the objectives
function
V5. "Bufferstock" is the levelof stock:
(B) Use of thgavailable resources (A) Half of the actualstock
(C) Value of the decision variable (B) At which the ordering process
(D) Allof these
72. ln the simplex method for solving of
(C) Minimum stock level below
LPP number of variables can be . which actual stock should not
fall
(A) Not more than three (D) Maximum stock in inventory
RS - 12t23 (13) ( Turn over )
Text of page 14
76. The minimum stock level is (B) Maximum stock level + % ot
calculated as:
Re-order level
(A) Reorder level (Normal (C) Minimum stock level + 113 of
consumption x Normal delivery
Re-order level
time)
(D) Maximum stock level + 113 of
(B) . Reorder level \+ (Normal
Re-order level
consumption x Normal delivery
time)
79. A-B-C analysis is used in
(C) (Reorder level + Normal (A) cPM
-
consumption) t Normal (B) PERT
delivery time (C) lnventorycontrol
(D) (Reorder level + Normal (D) Allof these
consumption) / Normal delivery
80. PERT analysis is based upon
time
77 . The time period between placing an
(A) Optimistic time
order its receipt in stock is known
(B) Pessimistic time
as:
(c) Mostlikelytime
(A) Lead time
(D) Allof these
(B) Carrying time
(c) Shortage time 81. Queuing theory is associated with
(D) Overtime
(A) lnventory
78. Average stock level can be
calculated as: (B) Sales
(A) Minimum stock level + v, of iCl Waiting time
Re-order level (D) Production time
RS - 12t23 (14) 'Contd
I
Text of page 15
82. The artificial activity which indicates 85. ln a five numbersummary, which oJ
that an activity following it, cannot be the following is not used for data
started unless the preceding activity summarization ?
is complete, is known as . (A) The smaltestvalue
(A) Free float (B) The largestvalue
(B) Event (C) The median
(C) Dummy (D) The 25th percentile
(D) Constant 86. Since the mode is the most
frequently occurring data value, it :
83. A numerical value used as a
summary measure for a sdmple, (A) Can never be larger than the
mean
such as sample mean, is known as
a'. (B) ls always larger. than the
median
(A) PopulationParameter
(B) Sample Parameter (C) ls always largerthan the mean
(C) Sample Statistic (D) None of the above answers is
correct
(D) Population Mean
87 . The combined arithmetic mean of two
84. The sum of the percentfrequencies
samples of , sizes 6 and 4 a
for all classes will always equal :
respectively whose means are 15
(A) One
and 25 is :
(B) The number,of classes (A) 20
(C) The number ef items in the (B) 1e
study
(c) 40
(D) 100
(D) 21
RS - 12t23 (15) (Turn over)
Text of page 16
88. Median = 1 +c(N/2-m)/fwhere'm' 91. The probabilig function is always :
is: (A) Negative.
(A) Cumulative frequency of the (B) Non-negative
median class (C) lnfinity
(B) Frequencyof the median class ' (D) None of these
(C) Cumulative frequency of the
92. lf "time" is used as the independent
class preceding the median
variable in a simple linear regression
class
analysis, then which of the following
(D) Frequency of the class
assumption could be violated :
preceding the median class
(A) There is a linear relationship
89. ln a Poisson probability distribution : between the independent and
(A) The mean and variance of the dependent variables
distribution are same (equal) (B) The residual variation is the
(B) The probability of success is same for all fitted values of Y
lways greaterthan 5 (C) The residuals are normally
(C) The number of trials is always distributed
less than 5 (D) Successive observations of the
(D) ltatways contains a contingency dependent variable are
table uncorrelated
90. A listing of the possibile outcomes of 93. The correlation coefficient r is
an experiment and their indpendent of :
corresponding probability is called : (A) Origin only
(A) Random variable (B) Scaleofmeasurementonly
(B) Contingencytable (C) Bothchangeoforiginand scale
(C) Probabilitydistribution of measurement
(D) Frequencydistribution (D) None of these
RS - 12123 (16) Contd.
Text of page 17
94. The percent of total variation of the (B) Laspeyre's and Paasche's
dependent variable Y explained by ' indices
the set of indepeldent variables X is (C) Paasche's and Marshal
measured by: Edgeworth indices
(A) Coefficient of Conelation (D) Allof these
(B) CoefficientofSkewness 98. Assignment problem has to be a
(C) Coefficient of Determination
(D) Standard Erroror Estimate (A) Square matrix
95. ln chain base method, the base (B) ldentity matrix
period is: (c) Body
(A) Fixed (D) None ofthese
(B) Notfixed 99. North-West corner rule is applied fc
(C) Constant
(D) Zero (A) Linearprogramming
96. Purchasing powerof moneycan be (B) Transportation problems
accessed through : (C) Assignmentproblems
(A) Simple index (D) Game theory
(B) Fisher's index 100. Which of the following approach has
(C) Consumer price index emerged from the finding of
(D) Volume index Hawthorne Experiments ?
97. Fisher's ideal index number is the (A) Humanbehaviorapproach
geometric mean of the : (B) Systems approach
(A) Laspeyre's and Marshall (C) Human relations approach
Edgeworth indices (D) Decision theory approach
RS - 12t23 (17 ) ( Tum oyer )
Text of page 18
101. The term "Gang Boss" is related to : 105. The management function that
(A) Functionalforemanship regulates the alivities :
(B) Separation of planning and (A) Co-ordination :
doing
(B) Control 1
(C) Direction
(C) Job.analysis
(D) Planning
(D) Standardization
106. Cost volume profit analysis is
102. The author of "Administration
otherwise called as :
lndustrielle at General" is :
(A) Budgetcontroltechnique
(A) HenryFayol (B) Statisticalcontrol
t
(B) Taylor (C) Break even analysis
(C) MaxWeber (D) Cost control
(D) Maslow 107. Specifying the manner of executing
103. "Management is what management the policy is known as :
does" is associated with the name : (A) Objective
(A) Peter F Druker (B) Schedule
(B) Terry (C) Procedure
(D) Budget
ial LouisAllan
08. The orders, instructions or direction
(D) Henry Fayol 1
are delegated to a particular person
104. Esteem need is also called as : specially known as":
(A) Socialneed (A) Generaldelegation
(B) Self-realizationneed (B) Formaldelegation
(C) Ego need (C) Specificdelegation
'(D) Safety need (D) lnformaldelegation
RS - 12t23 (18) Contd
)
Text of page 19
t0g. fne leader acts as a liaison officer (C) Large organization
I
between the employee and outside (D) Both (B) and (C)
world is:
113. ln factor compqrison method, each
(A) Positive style
factor is ascribed a .
' (B) Free-rein style (A) Moneyvalue
(C) Autocratic style
(B) Ranking
(D) Democraticstyle
(C) Scale
110. Strategic thinking is a (D) Grade
process.
114. What is that describes the duties of
(A) Short-term
the job, authority relationship, skill
(B) Long-term requirement, condition of work etc ?
(C) Continue (A) Job analysis
(D) None of these (B) Job enlargement
1 11. The organization's must (C) Job enrichment
be conductive to productivity and (D) Job evaluation
quality improvement.
115. Greater consumer control means that
(A) Cufture
companies must rely more on
(B) Development
marketing by than by
(c) Policy '
(D) Environment (A) Socialization; information
112. Point method is suitable for . (B) Producing;selling
(A) Small size organization (C) lnspiration; competition
(B) Mid-size organization (D) lnteraction;intrusion
RS - 12123 (1e) (Turn over)
Text of page 20
a
116. An increasingly large number of firms (B) Sprinkler strategy
,'r" their organizational .(c) Test marketing
"nrnging
focus from to
(D) Skimming strategy
(A) Productmanagement;functional
' 120. The holds that the
management -.
organization's task is to tteterminb
(B) Brandmanagement;customer
the needs, wants, and interests of
. relationship management -
target markets and to deliver the
(C) Territory management;
desired the satisfactions more
functional management
effectively and efficiently than
(D) Productmanagement;territory t
competitors in a waythat preserves
management
orenhances the consumer's and the
117. Ending prices with 99p is called : society's wellbeing.
(A) Price lining (A) Customer-centered business
(B) Prestige pricing (B) Focused business model
(C) Odd-even pricing (C) Societal marketing concept
(D) Price skimming (D) Ethicallyresponsiblemarkeling
118. Calculating prices on the basis of 121. markets include a wide
what the market will pay is called : variety of profit and noh-profit
(A) CompetitivePricing organizations, such as hospitals,
-
(B) Demand pricing government agencies and schools,
I
(C) Prestige Pricing which provide goods and services for
(D) PenetrationPricing the.benefit of society.
(A) Consumer
119. Starting with one ortwo areas and
then adding new regions to the (B) Busines-tobusiness(lndustrial)
distribution area is called :' (C) Reseller
(A) Rolling launch (D) lnstitutional
RS - 12123 (20) Contd
Text of page 21
122. Listing alternatives that will solve the . (B) Economic relationship
problem at hand and determining the (C) Directrelationship
characteristics of each occurs during
(D) tnverserelationship
which stage of the finalconsumer's
decision process ? 126. ln mutuallyexclusive projects, project
(A) lnformation search which is selected for comparison
(B) Purchase with others must have:
(C) Evaluation of alternatives (A) Higher net presentvalue
(D) Post purchase (B) Lowernetpresentvalue
123. When a project's internal rate of (C) Zeronetpresentvalue
return is equalto cost of capital ? (D) None of these
(A) Project should be accepted
127. Second mortgages pledged against
(B) Project should be rejected
bond's security are referred as :
(C) Cannot saywhetherto accept
or reject
(A) Loan mortgages
. (D) Project's NPVwillbe positive (B) Medium mortgages
124. Capttal gearing ratio are otherwise
(C) "Senior mortgages
called as: (D) Junior mortgages
(A) Liquidity ratio 128. Bonds issued by corporations and
(B) Tumoverratio exposed to default risk are classified
(C) Profitability ratio AS:
(D) Capitalstructureratio
(A) Corporation bonds
125. Relationship between Economic
(B) Default bonds
ValueAdded (EVA) and Net present
, (C) Risk bonds
Value (NPU is considered as:
(A) Valuedrelationship (D) Zero risk bonds
RS- 12123 (21 ) (Turn over)
Text of page 22
129. Cost of common stock is 13o/o and irr lncome expenses
bond risk premium is 5% then bond (c) Non-cash revenues
yield would be :
(D) Non-cash charges
(A) $18
133. Amount of Rs. 5,00,000 received by
(B) 2.600/o Ram & Co., as a compensation for
(C) 8o/o premature temination of contract of
(D) 18o/o' agency in the month ofApril, 2017 is
to be treated as :
130. Method of stock valuation which is
(A) Income from other sources
multiple of earning pershare, book
(B) Taxable underSection 28 (ii)(c)
value and net income is classified
AS:
(C) Revenue receipt which is
exempt
(A) Stock multiple analysis
('D) Capital receipt which is not
(B) Dividend multiple analysis
chargeable to tax
(C) Market multiple analysis
134. Johq is a foreign citizen born in USA.
(D) Stock and multiple analysis
His father was born in Delhi in 1960
131. Dividend present value for period of and his grand-father was born in
non-constant groMh in addition with Lahore in 1935 but his mother was
horizon value is used to calculate : born in UK in 1963. John came to
lndia forthe time on 1st June, 2017
(A) Stockextrinsicvalue
and stayed in lndia for 183 days and
(B) Stockintrinsicvalue
then left for USA. His residential
' (C) Dividend intrinsic value status for the A. Y.2018-1 9 shall be :
(D) Stockintrinsicvalue (A) Resident
132. ln calculation of net cash flow, (B) Resident but not ordinarY
resident
depreciation and dmortization are
treated as: (C) Non-resident
(A) Currentliabilities (t ) Foreign national
RS - 12123 (22) Contd
Text of page 23
135. The maximum amount of gratuity (ii) Business must be legal
exempt and the maximum amount of
(iii) Income may be earned in
leave encashment exempt under the
cash or kind
Act respectively are :
(iv) Profit motive is the sole
(A) Rs. 2,50,000 in each case
consideration
(B) Rs. 10,00,000 and Rs.
3,00,000 (A) (i), (ii)and (iv)
(C) Rs. 5,00,000 and Rs.2,50,000 (B) Allthe four
(D) Rs. 10,00,000 in each case (C) (i) and (iii)
136. Mr. X purchased in October,2017 , a (D) (ii), (iii) and (iv)
flat in Chennai, to be used for his own
residential purposes with the 138. Out of the following, which income is
financial assistance of housing loan chargeable as capitalgain ?
taken from. PNB Housing Finance (i) From transfer of self-
Ltd. He has paid intereston such loan
.
generated goodwill of
till March, 2018 of Rs. 1,78,780. The
profession
amount of interst paid on such loan
'' allowed u/s 24 is : (ii) From transferof personal
(A) Rs. 1;25,000 jewellery
(B) Rs. 1,78,780 (iii) Fromtransferofpaintings
(Cl Rs. 1,50,000 and art-work
(D) None of these (iv) From transfer of furniture
137. Which out of the following elements utilised for personal use
you find are sufficient for bringing to
(A) (i) and (ii)
tax as income from business or
profession : (B) (ii) and {iii)
(i) Ownership ofthe business (C) (i), (ii) and (iii)
is not necessary (D) (i) and (iv)
RS - 12123 (23 ) (Turn over)
Text of page 24
. 139. Base year for the purpose of (ii) Foreign companies in
calculation of indexed cost of
' certain situations
acquisition or the cost of
improvement in respect of long-term (iii) LPP
capitat asset acquired prior to 1st (A) (i) and (iii)
April, 2001 shall be taken as :
(B) (i) and (ii)
(A) 1e81-82
(B) 2001-02 (C) Allthethree
(c) 1ee1-e2 (D) only (i)
(D) 2011-12
142. First appealcan be filed by:
140. Babu Lalwon aprize of Rs. 1 ,OO,OO0
(A) Departmentonly
in Rajasthan State Lotteryand Lottery
Department paid him an amount of (B) Assessee only
Rs. 70,000 after deduction of tax a.t
(C) (A) or (B)
source of Rs. 30,000. He had
purchased lottery tickets fpr Rs.
(D) None of these
8,000. The amount chargeable to tax
143. Rahim has shown an air-conditioner
in the hands of Babu Lal underother
installed at his residence as having
sources shallbe :
(A) Rs.70,000 been installed at his factory, and
(B) Rs. 1,00,000 claimed depreciation thereon. This is
(C) Rs.92,000 an act of
(D) Rs.2,00,000 (A) Taxplanning
141. Provisions of Minimum Alternate Tax (B) Taxmanagement
(MAT) are applicable to the
(C) Tax evasion
companies which are :
(i) lndian companies (D) Tax pruning
(24',) Contd
RS - 12123 I
Text of page 25
144. Goods and Service Tax (GST) noted (B) Set-off against that payable
to be a greatest tax reform in lndia principle
and therefore was rolled-out with
(C) Destination base principle
effect from 1st July, 201 lt
.7. (D) Both consumptibn and
transforms a system of taxation
destination base principle
and administration into the
digital world by adopting latest 147. Construction of a complex, building,
information technology. The GST civil structure or the part thereof
model rolled out in lndia has been including a complex or building
adopted from : intended for sale to a buyer, wholly
(A) France partly except where the entire
(B) Canada consideration has been received
(C) Argentina after issuance of completion
(D) None of these certificate, where required, by a
'145. Special purpose vehicle competent authority or after its first
to caterthe
!T needs of GST is called : occupation, whichever is earlier for
(A) HSN the purpose of taxability under the
(B) GSTN CGSTAct,2017 shall be treated as
(c) |GSTN supply of :
(D) sGSrN (A) Goods
146. GST in lndia is levied on the basis (B) Both goods and services
of: (C) Services
(A) . Consumption principle (D) Contractwork
RS - 12t23 (25) (Turn over)
Text of page 26
148. A registered person as per Section required to apply for registration at
35 of the GSTAcl,2017 is required least days prior to the
to maintain proper accounts and commencement of business.
records and keep at his registered, (A) 30
principal place of business. Following (B) 5
are the records specified underthis (c) 15
section are to bb maintained by the
(D) 7
registered person :
150 Mr. Bala has made supply (within
(i) Production or manu-
, Site; of taxable goods to the tune of
facturing of goods
Rs. ,17 lakh, export supplies of Rs. 3
(ii) fnward and Outward lakh and intra-state supply of exempt
supply of goods or services of Rs.4lakh. His aggregate
services or both
turnover as per Section 2(6) of the
(iii) Stock of goods CGST/SGSTAct, 2017 is:
(iv) lnputcreditavailed . (A) Rs. 17lakh
t
(v) Output tax payable and (B) Rs.20lakh
Paid (C) Rs.24lakh
(vi) Such other Particulars as (D) Rs. 16lakh
may be prescribed
1'51 lnput Service Distributor shallfile the
(A) (i), (iii) and (iv) return in GSTR6 for the input s.ervice
(B) Allthe six as given in above distributed by:
(C) (i), (ii), (iii) and (v) (A) 1Oth of the next month
(D) (i), (iii), (iv), (v) and (vi) (B) lSthofthenextmonth
149. A casual taxable person or a nort-
(C) l3thofthe nextmonth
resident taxable Person shall be (D) 20th of the next month
RS - 12123 (26) Contd.
Text of page 27
152. Section 56 of the CGST Act,2017 (B) 14%
specifies that if any tax ordered to be (C) 28o/o
refunded after the order of an
(D) None of these
Appellate Authority is not refunded
't55. The title of AAS2 issued by Council
within 60 days from the date of
of lCAl is
application filed consequent to
such order, interest as such rate (A) Objective and Scope of the
not exceeding shall be Financial Statements
payable in respect of such refund. (Bi Objective and Scope of
(A) e0% the Audit of Financial
(B) 60/o Statements
(C) 12o/o (C) Objective and Scope of
Business of an Entity
(D) 18o/o
" (D) Objective and Scope of
153. Tax on inter-stiate supplies, import into
Financial Statements Audit
lndia, supplies made outside lndia
and supplies made in SEZ shall be 156. ln case of unclaimed wages,
charges to : the auditor should examine
(A) CGST and SGST whether:
(B) CGST and UTGST ,
(A) The amount has been
(C) CGST and IGST deposited in a separate bank
(D) rcsr aecount
(B) Deposited with the cashier
154. The highets enabling limit of tax rate
of IGST has been prescribed at:
(C) Held in a safe deposit box
(A) 20o/o (D) Allof these
RS - 12t23 Q7 ) (Turn over )
Text of page 28
157. While vouching wages, auditor (B)' Existence
' should examine whether
there is (C) Disclosure
proper seg regation of d utie.. Whi"n
(D) Possession
of the following abtivities should not
be done by same Oepartment Z 159 Equity shares of XY Ltd. held byABC
(A) Maintainingpersonnelrecords Ltd. are in the custody of Stock
and approving changing in Holding Corporation of lndia Limited.
wages rates The auditor many verify this
investment by; t
(B) Froposing pay roll summary
and disbursement of wages (A) Reviewing last year's working
(C) - Making salarystatements and papers
filing tax retums (B) Obtaining a certificate from a
(D) Comparing time clock records ' responsible officialof theABC
with time reports prepared by Ltd.
supervisors and preparing list (C) Obtaining a certiiicate frorn
of workers ernployed along SHCIL ]
with the units of production for
(D) Obtaining a certificatefrom XY
each one ofthem
. Ltd.
158. While verifying intangible assets, an
160 Analytical procedures are Ieast likely
auditor would recomPuted
to be use in the audit of :
' amortization charges and determine
whether amortization Period is
(A) Cash balance
reasonable. The auditor tries to (B) lnvestments
establish bY doing it. (C) Bills receivables l
(A) Valuation (D) Debtors
RS - 12123 (28) Contd.
Text of page 31
SPACE FOR ROUGH WORK RS - 12t23 (2,900) (31 ) Commerce
Text of page 32
U, rn t-
Official key not published for this paper.
Page 1 of 32
Source: State Selection Board. Question paper published by State Selection Board.