CMA-intermediate Scholarship Test

25 Questions

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Scholarship Quizzes & Trivia

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Questions and Answers
  • 1. 
    Small items like stapler, calculator, etc are not shown in books as fixed assets although they are used in business for long period due to:-
    • A. 

      Consistency concept

    • B. 

      Materiality concept

    • C. 

      Accrual concept

    • D. 

      Cost concept

  • 2. 
    According to AS 1, Disclosure should be made for
    • A. 

      Fundamental accounting assumption

    • B. 

      All accounting principles

    • C. 

      All significant accounting policies

    • D. 

      All accounting policies

  • 3. 
    The balance of sales day book is Rs. 25,000 and Rs.5000 were recovered from debtors. Then balance of Sales day Book will be transferred by which amount?
    • A. 

      Rs.25,000

    • B. 

      Rs.5,000

    • C. 

      Rs.20,000

    • D. 

      Rs.10,000

  • 4. 
    Contingent asset is not recognized in the financial statements on the basis of _____ accounting concept:
    • A. 

      Prudence

    • B. 

      Materiality

    • C. 

      Substance over form

    • D. 

      Going concern

  • 5. 
    Depreciation is the process of:
    • A. 

      Asset Valuation

    • B. 

      Verification of assets

    • C. 

      Allocation of cost of assets to the period of its life

    • D. 

      Decreasing the value of asset

  • 6. 
    On 1.6.07, X drawn a bill on Y for Rs. 25,000. At maturity Y request X to accept Rs. 5,000 in cash and noting charges incurred Rs. 100 and for the balance X draw a bill on Y for 2 months at 12% p. a interest amount will be :
    • A. 

      Rs. 410

    • B. 

      Rs. 402

    • C. 

      Rs. 440

    • D. 

      Rs. 400

  • 7. 
    Memorandum records of sale on approval is a part of :
    • A. 

      Management Accounts

    • B. 

      Financial Accounts

    • C. 

      Cost accounts

    • D. 

      None of the above

  • 8. 
    Amount spent on unsuccessful patent right is a :
    • A. 

      Revenue expenditure (even though the amount is large)

    • B. 

      Deferred revenue expenditure (if the amount is large)

    • C. 

      Capital expenditure

    • D. 

      None of these

  • 9. 
    Fees paid in cash to Notary public is charged by:
    • A. 

      Drawer

    • B. 

      Drawee

    • C. 

      Holder of the bill of exchange

    • D. 

      None

  • 10. 
    Accounting standards ______the statue:
    • A. 

      Can over-ride

    • B. 

      Cannot over-ride

    • C. 

      May over-ride

    • D. 

      None

  • 11. 
    A businessman purchased goods for Rs.25,00,000 and sold 70% of such goods during the accounting year ended 31st March,2005. The market value of remaining goods was Rs.5,00,000. He valued the closing stock at Rs.5,00,000 and not at Rs.7,50,000 due to:
    • A. 

      Money measurement

    • B. 

      Conservatism

    • C. 

      Cost

    • D. 

      Periodicity

  • 12. 
    A Hindu widow borrowed money from a lender for the purpose of filing a suit for maintenance. The lender advanced money at 100 percent rate of interest. The act of the money lender is induced by ___________.
    • A. 

      Undue Influence

    • B. 

      Coercion

    • C. 

      Fraud

    • D. 

      Misrepresentation

  • 13. 
    Which of the following types of agreements are opposed to public policy–
    • A. 

      Stifling prosecution.

    • B. 

      Trafficking in public offices.

    • C. 

      Agreements in restraint of marriage

    • D. 

      All of the above

  • 14. 
      An agreement is the outcome of ––––––between the contracting parties.
    • A. 

      Compromise

    • B. 

      Promises

    • C. 

      Consensus

    • D. 

      All of the above

  • 15. 
    A condition is a stipulation which is
    • A. 

      Essential to the main purpose of the contract of sale

    • B. 

      Not essential to the main purpose of the contract

    • C. 

      Collateral to the main purpose of the contract of sale

    • D. 

      None of these

  • 16. 
     In which of these relations, undue influence is to be proved by the 'aggrieved party'? 
    • A. 

      Parents and child

    • B. 

      Teacher and student

    • C. 

      Husband and wife

    • D. 

      Doctor and patient

  • 17. 
    Agreements contingent on happening or non-happening of an impossible event are–
    • A. 

      Parties are already aware about the impossibility of the event

    • B. 

      Always void

    • C. 

      Void only, if impossible event is unknown to the parties

    • D. 

      Valid

  • 18. 
    Which of the following is not the essential element of Contract of sale ?
    • A. 

      There must be atleast 2 parties i.e. Buyer and Seller

    • B. 

      Subject matter of the contract must necessarily be goods.

    • C. 

      Contract of sale must possess all the essential elements of contact of sale

    • D. 

      None of these

  • 19. 
    All the agreements are contracts if they are made
    • A. 

      By free Consent

    • B. 

      By coercion

    • C. 

      By incompetency

    • D. 

      None of these

  • 20. 
    Consent is not free when it is caused by
    • A. 

      Consensus ad idem

    • B. 

      Fraud

    • C. 

      Undue Influence

    • D. 

      Both B and C

  • 21. 
    Undue Influence sometimes called
    • A. 

      Mistake

    • B. 

      Moral coercion

    • C. 

      Duress

    • D. 

      All of the above

  • 22. 
    Fiduciary relations means relationship of
    • A. 

      Trust and confidence

    • B. 

      Senior and junior

    • C. 

      Both of the above

    • D. 

      None of the above

  • 23. 
    Contract with a pardanashin woman raise the presumption of:
    • A. 

      Domination of Will

    • B. 

      Undue Influence

    • C. 

      Both ofthese

    • D. 

      None of the above

  • 24. 
     which of the following is not  an exceptions to the rule " NEMO DAT QUOD NON HABET" -
    • A. 

      Sale by an unpaid seller

    • B. 

      Sale by co- owner

    • C. 

      Sale by finder of lost goods under certain circumstances

    • D. 

      None of these

  • 25. 
    In mistake of the law of the country
    • A. 

      Contract is Voidable

    • B. 

      Contract is Void

    • C. 

      Contract remains valid

    • D. 

      None of these

  • 26. 
    Mistake of law of a foreign country treated as
    • A. 

      Mistake of fact

    • B. 

      Mistake of law

    • C. 

      Bilateral Mistake

    • D. 

      All of the above

  • 27. 
    ………………….. Is an essential requirement of undue influence
    • A. 

      Physical Force

    • B. 

      Criminal act

    • C. 

      Intention to deceive

    • D. 

      Domination of Will

  • 28. 
    The contract which are based on principle of equity, justice and good conscience are_____________.
    • A. 

      Contingent Contract

    • B. 

      Quasi Contract

    • C. 

      Anticipatory Contract

    • D. 

      Wagering agreement

  • 29. 
    Events in case of contingent contracts are:
    • A. 

      Collateral and uncertain

    • B. 

      Certain and Collateral

    • C. 

      Collateral or uncertain

    • D. 

      Both A and C

  • 30. 
    The contract of general insurance is:
    • A. 

      Contingent

    • B. 

      Valid

    • C. 

      Voidable

    • D. 

      None of these

  • 31. 
    Specific Performance may be ordered by the court when:
    • A. 

      Damages are an adequate remedy

    • B. 

      Damages are not an adequate remedy

    • C. 

      Defaulting party is not ready to pay damages

    • D. 

      Contract is not voidable

  • 32. 
    The remedies open to a person, suffering from breach of contract are:
    • A. 

      Suit for Damages

    • B. 

      Suit for Injunction

    • C. 

      Suit upon Quantum Meruit

    • D. 

      All of these

  • 33. 
    –––––––––– damages are measured on the basis of extent of shock to the sentiments of promise:
    • A. 

      Vindictive

    • B. 

      Nominal

    • C. 

      Loss of reputation

    • D. 

      Discomfort

  • 34. 
    The phase “Quantum Meruit” Literally means:
    • A. 

      As soon as possible

    • B. 

      As much as is earned

    • C. 

      According to merit

    • D. 

      Quantity of goods

  • 35. 
    If a party refuses to perform his part of promise before the due date of performance, it is known as:
    • A. 

      Advance breach of contract.

    • B. 

      Anticipatory breach of contract.

    • C. 

      Actual breach of contract.

    • D. 

      Accidental breach of contract.

  • 36. 
     A proposes by letter, to sell a house to B at a certain price. A revokes his proposal by telegram. The revocation is complete as against B when____________.
    • A. 

      B receives the telegram

    • B. 

      False A dispatches the telegram

    • C. 

      A writes the telegram but the same has not been sent to B

    • D. 

      B responds to the telegram

  • 37. 
    Which of the following are not the agreements opposed to public policy
    • A. 

      Trading with alien enemy

    • B. 

      Trading with alien Friend

    • C. 

      Champerty and maintainance

    • D. 

      Interference with the course of justice

  • 38. 
    In case of partnership, maximum number of members of banking company are:
    • A. 

      10

    • B. 

      20

    • C. 

      15

    • D. 

      30

  • 39. 
     A took some loan from B and agreed that he would not get married without the consent of B. This agreement is void being–
    • A. 

      Forbidden by law

    • B. 

      A fraudulent agreement.

    • C. 

      Restraining personal liberty

    • D. 

      All the three reasons

  • 40. 
    A person when himself told that he is a partner of the firm, then he is a:
    • A. 

      Partner by holding out

    • B. 

      Nominal partner

    • C. 

      Active partner

    • D. 

      Sleeping partner

  • 41. 
    The buyer is deemed to have accepted the goods
    • A. 

      When he does not intimate the seller that he has accepted the goods

    • B. 

      When he informs the seller that he has rejected the goods

    • C. 

      When he sends those goods to someone on sale or return basis.

    • D. 

      None of these

  • 42. 
    Acceptance can precede an offer
    • A. 

      True

    • B. 

      Partly True

    • C. 

      False

    • D. 

      None of the above

  • 43. 
     Which one of the following sales is not valid ?
    • A. 

      Sale by mercantile Agent

    • B. 

      Sale by one of the joint owners

    • C. 

      Sale by a person in under a voidable contract

    • D. 

      All of the above

  • 44. 
    In case of excess delivery, buyer is at liberty to
    • A. 

      Accept the whole

    • B. 

      Reject the whole

    • C. 

      Accept the quantity as ordered and reject the rest

    • D. 

      Do any of the above

  • 45. 
    Goods which are not in existence at the time of contract are-
    • A. 

      Future goods

    • B. 

      Contingent goods

    • C. 

      Both A and B

    • D. 

      Unascertained goods

  • 46. 
    Which one of the following is not an implied warranty
    • A. 

      Warranty as to undisturbed possession

    • B. 

      Warranty as to existence of encumbrance

    • C. 

      Disclosure of dangerous nature of goods

    • D. 

      None of the Above

  • 47. 
     The Doctrine of Privity of Contract states that________________
    • A. 

      A contract cannot confer any right on one who is not a party to the contract, even though the very object of the contract may have been to benefit him.

    • B. 

      A contract always confers right on one who is not a party to the contract.

    • C. 

      A contract can confer right on one who is not a party to the contract, if the contract benefits him.

    • D. 

      A contract can confer rights on strangers.

  • 48. 
    The latin maxim "Nemo dat quod non habet"
    • A. 

      Let the buyer be aware

    • B. 

      An eye for an eye and tooth for a tooth

    • C. 

      Never dare to quarrel with a good seller

    • D. 

      No one can give what he has not got

  • 49. 
    There are……… kinds of dilivery
    • A. 

      Two

    • B. 

      Three

    • C. 

      Four

    • D. 

      Five

  • 50. 
    Which of the following is not a form of dilivery
    • A. 

      Actual

    • B. 

      Symbolic

    • C. 

      Constructive

    • D. 

      Structured dilivery

  • 51. 
    Economics is
    • A. 

      An imperfect Science

    • B. 

      Not a full-fledged Science

    • C. 

      An inexact Science

    • D. 

      All of the above

  • 52. 
    Which is the following is not correct ?Economic is viewed as
    • A. 

      Science of wealth

    • B. 

      Science of welfare

    • C. 

      Science of well being

    • D. 

      Science of choice making

  • 53. 
    Adam Smith considered Economics as -
    • A. 

      Science of wealth

    • B. 

      Science of Material well-being

    • C. 

      Science of choice making

    • D. 

      Science of growth and Development

  • 54. 
    All of the following are determinants of demand except –
    • A. 

      Tastes and preferences

    • B. 

      Quantity supplied

    • C. 

      Income

    • D. 

      Price of related goods

  • 55. 
    The demand for two – wheelers is likely to decrease with an increase in petrol prices because two-wheelers and petrol are- 
    • A. 

      Inferior goods

    • B. 

      Normal goods

    • C. 

      Complimentary goods

    • D. 

      Substitution goods

  • 56. 
    Stock is potential supply.
    • A. 

      True

    • B. 

      Partially True

    • C. 

      False

    • D. 

      None of the above

  • 57. 
    Which Indian state has the largest number of cotton textile mills? 
    • A. 

      Madhya Pradesh

    • B. 

      Gujrat

    • C. 

      Maharashtra

    • D. 

      West Bengal

  • 58. 
    Producing firms are guided by -
    • A. 

      Service motive

    • B. 

      Profit motive

    • C. 

      Both

    • D. 

      Neither (1) nor (2)

  • 59. 
     Who is known as the ‘Father of White Revolution’ ?
    • A. 

      VR Krisha Aiyyar

    • B. 

      MS Swaminathan

    • C. 

      Jawaharlal Nehru

    • D. 

      V Kurien

  • 60. 
    The Giffen Effect in respect of Inferior Goods was observed in the case of
    • A. 

      Rice and Wheat

    • B. 

      Wheat and Meat

    • C. 

      Bread and Meat

    • D. 

      Bread and Rice

  • 61. 
    The purpose of Labour laws primarily to -
    • A. 

      Increase beginning power of Labour

    • B. 

      Maintain labour welfare

    • C. 

      Guarantee work for each individual

    • D. 

      All of the above

  • 62. 
    The Bombay Stock Exchange was initially established in:-
    • A. 

      2001

    • B. 

      1900

    • C. 

      1986

    • D. 

      1875

  • 63. 
    ……….Cost is not relevant for Decision- making?
    • A. 

      Economic

    • B. 

      Opportunity

    • C. 

      Sunk

    • D. 

      Incremental cost

  • 64. 
    Incremental cost equals-
    • A. 

      Additional Variable costs only

    • B. 

      Additional Fixed costs only

    • C. 

      Both (1) and (2)

    • D. 

      Neither (1) nor (2)

  • 65. 
    Outlay costs-
    • A. 

      Involve cash payment

    • B. 

      Do not involve any cash payment

    • C. 

      Both (1) and (2)

    • D. 

      Neither (1) nor (2)

  • 66. 
    ………….included all payments paid to Factors of Production and Opportunity cost.
    • A. 

      Implicit Cists

    • B. 

      Explicit costs

    • C. 

      Economic Cost

    • D. 

      Accounting Cost

  • 67. 
    Income arising out of “ capital” is a ………
    • A. 

      Stock

    • B. 

      Flow

    • C. 

      Both (a) and (b)

    • D. 

      Neither (a) and (b)

  • 68. 
    Capital formation is required for -
    • A. 

      Increasing the efficiency of production efforts

    • B. 

      Expansion of output of consumer goods in the future

    • C. 

      Ensuring growth of the company

    • D. 

      All the above

  • 69. 
     In India which of the following taxes is levied by the state governments?
    • A. 

      Excise duty on liquor

    • B. 

      Capital gains tax

    • C. 

      Customs duty

    • D. 

      corporation tax

  • 70. 
    Which among the following is an essential characteristic of mixed economy?
    • A. 

      Co-existence of small scale and large scale industries

    • B. 

      co-existence of private and public sectors

    • C. 

      co-existence of the rich and the poor

    • D. 

      assigning equal importance to both agriculture and heavy industries

  • 71. 
    Which industry best fits the description of a Perfectly Competitive market?
    • A. 

      Automobile

    • B. 

      PC

    • C. 

      Soft drinks

    • D. 

      Agriculture

  • 72. 
    Under Perfect Competition , Products are -
    • A. 

      Marginal cost is below average cost

    • B. 

      Marginal cost is above average cost

    • C. 

      Marginal cost is equal to average variable cost

    • D. 

      Marginal cost is equal to average cost

  • 73. 
    The assumptions of large number of sellers homogeneity in Perfect Competition, implies that all individual Firms in Perfect Competition are-
    • A. 

      Price takers

    • B. 

      Price Movers

    • C. 

      Price Givers

    • D. 

      Price Offerers

  • 74. 
    In an under-developed economy, a majority of the population is engaged in -
    • A. 

      Agriculture and allied activities

    • B. 

      Industry Sector

    • C. 

      Services Sector

    • D. 

      None of the above

  • 75. 
    How many banks were nationalized in 1969?
    • A. 

      10

    • B. 

      12

    • C. 

      13

    • D. 

      14

  • 76. 
    Which Indian state stands first in the production of coffee?
    • A. 

      Kerala

    • B. 

      Assam

    • C. 

      Gujarat

    • D. 

      Karnataka

  • 77. 
     Which of the following was the first Indian bank?
    • A. 

      Bank of Baroda

    • B. 

      State Bank of India

    • C. 

      Punjab National Bank

    • D. 

      Bank of Hindustan

  • 78. 
    In which of the following market conditions, does a Firm maximizes its profit when its Marginal Revenue is equal to Marginal Cost?
    • A. 

      Perfect Competition

    • B. 

      Monopoly

    • C. 

      Monopolistic Competition

    • D. 

      All of the above

  • 79. 
    Reserve Bank of India
    • A. 

      Issue currency

    • B. 

      Banker to general public

    • C. 

      Apex monetary institution in India

    • D. 

      Both A and C

  • 80. 
    Median can be determined graphically with the help of
    • A. 

      Histogram

    • B. 

      Ogive

    • C. 

      Frequency curve

    • D. 

      None of them

  • 81. 
    The appropriate average if we have to find average speed is
    • A. 

      AM

    • B. 

      GM

    • C. 

      HM

    • D. 

      Median

  • 82. 
    When the data is given in percentage then the appropriate average is
    • A. 

      GM

    • B. 

      HM

    • C. 

      Median

    • D. 

      AM

  • 83. 
    A pair of dice is rolled. If the sum on the dice is 9, find the probability that one of dice showed 3.
    • A. 

      1/9

    • B. 

      1/4

    • C. 

      1/2

    • D. 

      1

  • 84. 
    There are ----------- types of Ogives
    • A. 

      2

    • B. 

      3

    • C. 

      4

    • D. 

      6

  • 85. 
    The best average in case of open end series is
    • A. 

      AM

    • B. 

      HM

    • C. 

      Mode

    • D. 

      Median

  • 86. 
    If each item of the data is increased by 40 then GM will be
    • A. 

      Increased by 20

    • B. 

      Increased by 30

    • C. 

      Increased by 40

    • D. 

      None of them

  • 87. 
    If each item of the data is increased by 40 then Standard Deviation will be
    • A. 

      Increased by 30

    • B. 

      No change

    • C. 

      Increased by 40

    • D. 

      None of them

  • 88. 
    Sum of the Absolute deviations from the median is always
    • A. 

      Minimum

    • B. 

      Maximum

    • C. 

      Zero

    • D. 

      None of them

  • 89. 
    Sum of the square of the deviations from mean is always
    • A. 

      Maximum

    • B. 

      Zero

    • C. 

      Minimum

    • D. 

      None of them

  • 90. 
    Number of Octiles are
    • A. 

      3

    • B. 

      7

    • C. 

      4

    • D. 

      8

  • 91. 
    Can a Quartile, Decile and Percentile be the Median?
    • A. 

      Quartile and Percentile

    • B. 

      Decile and Percentile

    • C. 

      Quartile and Decile

    • D. 

      Quartile, Decile and Percentile

  • 92. 
    We can find the combined -------------of a given set of data
    • A. 

      Mean

    • B. 

      Variance

    • C. 

      Standard Deviation

    • D. 

      All the three

  • 93. 
    The value of First Quartile is ---------- of the Median
    • A. 

      Half

    • B. 

      Double

    • C. 

      One Fourth

    • D. 

      None of them

  • 94. 
    Quartile Deviation is Approximately Two-third of
    • A. 

      Mean

    • B. 

      Standard Deviation

    • C. 

      Mean Deviation

    • D. 

      Inter-Quartile Range

  • 95. 
    Mean Deviation is Approximately Four-fifth of
    • A. 

      Standard Deviation

    • B. 

      Inter-Quartile Range

    • C. 

      Mean

    • D. 

      Quartile Deviation

  • 96. 
    The Standard deviation of 10, 16, 10, 16, 10, 10, 16, 16 is
    • A. 

      4

    • B. 

      6

    • C. 

      3

    • D. 

      5

  • 97. 
    The Mean and Standard Deviation of 13, 13, 13, 13 is
    • A. 

      13, 13

    • B. 

      13, 0

    • C. 

      0, 13

    • D. 

      0, 0

  • 98. 
    If the sign of each item of the given data is negative then the Range of the data is
    • A. 

      Negative

    • B. 

      Positive

    • C. 

      Both

    • D. 

      Zero

  • 99. 
    Coefficient of Standard Deviation is
    • A. 

      Same unit of the given data

    • B. 

      Square of the unit of the given data

    • C. 

      Cube of the unit of the given data

    • D. 

      No unit

  • 100. 
    Mode can be determined graphically with the help of
    • A. 

      Frequency Curve

    • B. 

      Ogive

    • C. 

      Histogram

    • D. 

      Pie chart

  • 101. 
    In a given data there may be more than one ---------- .
    • A. 

      Means

    • B. 

      Medians

    • C. 

      Modes

    • D. 

      Standard Deviations

  • 102. 
    Provision for doubtful debts is made because of which concept
    • A. 

      Conservative

    • B. 

      Matching

    • C. 

      Prudence

    • D. 

      Comparability

  • 103. 
    Deferred Revenue Expenses is an expenses of
    • A. 

      Revenue Nature

    • B. 

      Revenue and Capital Nature

    • C. 

      Capital Nature

    • D. 

      Deferred Nature

  • 104. 
    B/R dishonoured is a/an
    • A. 

      Income

    • B. 

      Loss

    • C. 

      Neither income nor loss

    • D. 

      Liability

  • 105. 
    Income-Tax paid by Sole trader is shown in
    • A. 

      Debit to Trading Account

    • B. 

      Debit to P&L A/C

    • C. 

      Debit to Capital A/C

    • D. 

      Credit to P&L A/C

  • 106. 
    If the calls in advance is paid alongwith the Application money then interest on calls in advance is paid for the period from
    • A. 

      Date of Applications

    • B. 

      Date of allotment

    • C. 

      Date of receipt of Application money

    • D. 

      Date of First call

  • 107. 
    From the following, which is one of the objective of Bank Reconciliation Statement
    • A. 

      To help in detecting frauds and errors occurred in cash book or in the bank books

    • B. 

      To find the actual position of the Bank Balance

    • C. 

      To find any undue delay in the clearing of the cheques

    • D. 

      All the above

  • 108. 
     An expenditure incurred to INCREASE the "REVENUE EARNING CAPACITY" of the firm is termed as
    • A. 

      Revenue Expenditure

    • B. 

      Capital Expenditure

    • C. 

      Deferred Revenue Expenditure

    • D. 

      None of these

  • 109. 
    Fixed Production Overheads should be allocated for the valuation of closing stock, on the basis of
    • A. 

      Normal Capacity of production

    • B. 

      Actual Production

    • C. 

      Normal Capacity of production or Actual Production whichever is Minimum

    • D. 

      Normal Capacity of production or Actual Production whichever is Maximum

  • 110. 
    Raw Material can be valued at Market Price, if----
    • A. 

      Market Value of Raw Material is More than its cost

    • B. 

      Market Value of Raw Material is Less than its cost

    • C. 

      Market Value of Finished goods Produced is Less than its cost

    • D. 

      None of these

  • 111. 
    Depreciation is charged on Fixed Assets ----
    • A. 

      As well as on Current Assets

    • B. 

      At a Single rate on all Fixed Assets

    • C. 

      Separately for each Fixed Asset at Different Rates as per the nature of each Fixed Asset

    • D. 

      Separately for each Major Component Parts of Fixed Asset at Different Rates as per the nature of each Fixed Asset

  • 112. 
    Stock of Finished Goods consist of two products A and B. The cost of A and B  is Rs 500 and 800. The Market Value of A and B is 900 and 700. Hence closing stock should be valued in the books at-----
    • A. 

      1200

    • B. 

      1600

    • C. 

      1300

    • D. 

      1500

  • 113. 
    All Expenses relating to Plant and Machinery  should be charged to P&L A/C From the date when-----
    • A. 

      The Plant and Machinery is Purchased

    • B. 

      The Plant and Machinery is Installed

    • C. 

      The Plant and Machinery is Ready to Commence Commercial Production

    • D. 

      The Commercial Production actually begins

  • 114. 
    Harmonic Mean is the Reciprocal of the Arithmetic Mean of  --------------
    • A. 

      The reciprocal of the data

    • B. 

      The given data

    • C. 

      The square of the data

    • D. 

      None of these

  • 115. 
    On the Frequency Curve, Median divides the  Mean and Mode in the ratio of 
    • A. 

      Two : One

    • B. 

      Three : One

    • C. 

      Three: Two

    • D. 

      None of these

  • 116. 
    Find the Class Interval of the following classes.  2 - 4,  6 - 8,  10 - 12.
    • A. 

      4

    • B. 

      6

    • C. 

      2

    • D. 

      None of these

  • 117. 
    In a class there are 7 students, 4 of them are failed in a test and obtained the following marks; 4,  7,  9 and 11. Find the Median Marks obtained by the students of the  of the whole class.
    • A. 

      4

    • B. 

      8

    • C. 

      11

    • D. 

      None of these

  • 118. 
    If each item is multiplied by 5 then the coefficient of Standard Deviation will be 
    • A. 

      Multiplied by 5

    • B. 

      Increased by 5

    • C. 

      Multiplied by 25

    • D. 

      Remained same

  • 119. 
    A family have two children.  Find the probability that they have two boys if it is given that one of the child is a boy
    • A. 

      One- forth

    • B. 

      One - third

    • C. 

      Half

    • D. 

      None of these

  • 120. 
    In poisson Distribution Standard Deviation is equal to the square-root of Mean
    • A. 

      False

    • B. 

      True

    • C. 

      May be possible

    • D. 

      Can't say

  • 121. 
    In Normal Distribution, the Probability of Mean is
    • A. 

      Half

    • B. 

      One - thenth

    • C. 

      Zero

    • D. 

      None of these

  • 122. 
    The accounting measurement that is not consistent with the Going Concern concept is
    • A. 

      Historical Cost

    • B. 

      Realization

    • C. 

      The Transaction Approach

    • D. 

      Liquidation Value

  • 123. 
    Prepaid expenses are valued on the Balance Sheet at
    • A. 

      Replacement cost

    • B. 

      Current cost

    • C. 

      Cost to acquire the asset

    • D. 

      Cost less expired portion

  • 124. 
    The accountant of Leo Ltd. recorded a payment by cheque to a creditor for supply of materials as Rs.1,340.56. The bank recorded the cheque at its correct amount of Rs. 3,140.56. The Company has not passed any rectification entries and the error is not detected through the bank reconciliation. The impact of this error is
    • A. 

      The Trial Balance will not agree

    • B. 

      The balance of creditors is understated

    • C. 

      The purchases are understated

    • D. 

      The favorable bank balance as per Pass Book is less than the Bank balance as per Cash book

  • 125. 
    Cash Profit is
    • A. 

      Gross Profit- Net profit

    • B. 

      Net profit – Non-trading Profit – Depreciation and provision

    • C. 

      Gross Profit – Non-trading Profit + Depreciation and provision

    • D. 

      Net Profit + Depreciation and provision

  • 126. 
    Tax deducted at source appears in the Balance Sheet
    • A. 

      On the assets side under current assets

    • B. 

      On the assets side under loans and advances

    • C. 

      On the liabilities side under current liabilities

    • D. 

      On the liabilities side under provisions

  • 127. 
    There are three partners A,B,C in a firm. D is admitted for a ¼ share of profit with a guaranteed profit of Rs.30,000. During the year 2011-12 the firm reported profit of Rs.1,00,000. Find the profit to be given to D------
    • A. 

      Rs.30000

    • B. 

      Rs.25000

    • C. 

      Rs.22000

    • D. 

      Rs.28000

  • 128. 
    Standing offer means ____
    • A. 

      Offer for a fixed period

    • B. 

      Accepted proposal

    • C. 

      Conditional acceptance

    • D. 

      All of the above

  • 129. 
    A contract to do or not to do something, if some event collateral to such contract, does or does not happen
    • A. 

      Contingent contract

    • B. 

      Wagering agreement

    • C. 

      Uncertain contract

    • D. 

      Voidable contract

  • 130. 
    Which of the following is true
    • A. 

      Generally, stranger to a contract can sue

    • B. 

      A promise to pay time barred debt orally is valid

    • C. 

      A promise to pay time barred debt is valid if it is in written form

    • D. 

      All of the above

  • 131. 
    Which of the following persons can perform the contract
    • A. 

      Promisor alone

    • B. 

      Legal representatives of promisor

    • C. 

      Agent of promisor

    • D. 

      All of the above

  • 132. 
    When the time is essence of contract, promisor does not perform his obligation. What is the effect of contract ________
    • A. 

      Voidable at the option of promisee

    • B. 

      Void

    • C. 

      Unenforceable

    • D. 

      None of the above

  • 133. 
    In case of illegal agreements collateral agreements are _____
    • A. 

      Valid

    • B. 

      Void

    • C. 

      Voidable

    • D. 

      None of these

  • 134. 
    Breach by the promisor prior to the date of performance of a contract is _________
    • A. 

      Actual breach of contract

    • B. 

      Anticipatory breach of contract

    • C. 

      No contract

    • D. 

      Void-ab-initio

  • 135. 
    In case of promise to pay time barred debt
    • A. 

      It should be in written form

    • B. 

      It should be signed by promisor only, but not by his agent

    • C. 

      It may be express or implied

    • D. 

      None of the above

  • 136. 
    Pre-probable estimated losses is called ______
    • A. 

      Ordinary damages

    • B. 

      Exemplary damages

    • C. 

      Vindictive damages

    • D. 

      Liquidated damages

  • 137. 
    Payment in proportionate to the work done, it means _____
    • A. 

      Injection

    • B. 

      Specific performance

    • C. 

      Recession

    • D. 

      Quantum Meruit

  • 138. 
    Which is not opposed to public policy?
    • A. 

      Trading with alien enemy

    • B. 

      Interference with the course of justice

    • C. 

      Sale of public offices

    • D. 

      Agreement to do impossible act

  • 139. 
    In the absence of agreement, partners are entitled to ______
    • A. 

      Interest on loan

    • B. 

      Interest on drawings

    • C. 

      Interest on capital

    • D. 

      Salary

  • 140. 
    When registrar is satisfied with the information provided, he makes an entry in __
    • A. 

      Register of partnership

    • B. 

      Register of firms

    • C. 

      Register of companies

    • D. 

      None of these

  • 141. 
    When a partner applies for court for the dissolution of the firm?
    • A. 

      Insanity

    • B. 

      Misconduct

    • C. 

      Perpetual losses

    • D. 

      All of the above

  • 142. 
    A person who lends his name to the firm but has no interest in the share of profits is called
    • A. 

      Nominal partner

    • B. 

      Holding out partner

    • C. 

      Dormant partner

    • D. 

      Active partner

  • 143. 
    Which is beyond the scope of implied authority of a partner?
    • A. 

      Purchase or sale of goods on behalf of firm

    • B. 

      Borrowing money for the purpose of firm

    • C. 

      Enter into partnership on behalf of firm

    • D. 

      To engage a lawyer to defend actions against firm

  • 144. 
    Which of the following statement is true about registration of partnership?
    • A. 

      It must be done only before its formation

    • B. 

      It is compulsory but can be done any time after its formation

    • C. 

      It must be done only at the time of filing suit against third party

    • D. 

      It may be done at any time after its formation

  • 145. 
    Under the sale of goods Act 1930 if goods sold on brand or patent name there is no _____
    • A. 

      Implied condition

    • B. 

      Implied warranty

    • C. 

      Express condition

    • D. 

      Express warranty

  • 146. 
    The areas where it is possible to apply different accounting policies are
    • A. 

      Valuation of investments

    • B. 

      Valuation of inventories

    • C. 

      Providing depreciation

    • D. 

      All of the above

  • 147. 
    Which one of the following is not an example of an accounting policy?
    • A. 

      Valuation of Inventories

    • B. 

      Valuation of investments

    • C. 

      Going concern

    • D. 

      Revenue recognition

  • 148. 
    All parts of financial statements are interrelated because they reflect different aspects of same transactions or other events.
    • A. 

      True

    • B. 

      False

  • 149. 
    Profit and Loss Account portrays value of economic resources controlled by an enterprise.
    • A. 

      True

    • B. 

      False

  • 150. 
    Tendulkar purchased a building for Rs 5,00,000 on April 1, 2006. On April 1, 2011, he found that it would cost Rs 15,00,000 to purchase a similar building. This value of Rs 15,00,000 is known as:
    • A. 

      Present Value

    • B. 

      Realizable Value

    • C. 

      Current Cost

    • D. 

      Market Value

  • 151. 
    Which of the following is not an accepted basis of measurement?
    • A. 

      Realisable Value

    • B. 

      Future Value

    • C. 

      Historical Cost

    • D. 

      Present Value

  • 152. 
    Which of the following is not an accepted basis of measurement?
    • A. 

      Realisable Value

    • B. 

      Future Value

    • C. 

      Historical Cost

    • D. 

      Present Value

  • 153. 
    What would you call the process of determination of amount of provision for doubtful debts?
    • A. 

      Application of accounting policy

    • B. 

      Setting the parameters for determination of the amount of provision of doubtful debts

    • C. 

      Estimation

    • D. 

      All of the above

  • 154. 
    Which of the following is not an accepted basis of measurement?
    • A. 

      Realisable Value

    • B. 

      Future Value

    • C. 

      Historical Cost

    • D. 

      Present Value

  • 155. 
    Valuation can be made based on
    • A. 

      Historical Cost

    • B. 

      Current Cost

    • C. 

      Realisable value

    • D. 

      All of the above

  • 156. 
    Satyam is reviewing its trial balance as of March 31, 2012, and observes that the debit total is greater than the credit total by Rs 7,500. In investigating, Satyam finds out that rental income has been overstated by Rs 2,500, and corrects the error. What will be the impact on the trial balance?
    • A. 

      Debits will exceed credits by Rs 10,000

    • B. 

      Debits will exceed credits by Rs 5,000

    • C. 

      Credits will exceed debits by Rs 5,000

    • D. 

      Credits will exceed debits by Rs 10,000

  • 157. 
    A trial balance will not 'agree' if
    • A. 

      If a sale entry of Rs 5,000 is recorded twice

    • B. 

      If a credit purchase of Rs 5,000 is recorded as a cash purchase

    • C. 

      Rs 2,000 received from debtors is credited to debtors for Rs 500 and debited to cash for Rs 2,000

    • D. 

      Rs 2,000 received from Khan is recorded as Rs 2,000 received from Kumar

  • 158. 
    A new articled clerk in a chartered accountant firm draws up a trial balance for the year ended 31st March 2011
    • A. 

      Rs 3,18,000

    • B. 

      Rs 2,57,000

    • C. 

      Rs 2,47,000

    • D. 

      Rs 3,08,000

  • 159. 
    The purpose of trial balance is
    • A. 

      To ensure the arithmetical accuracy of books of accounts

    • B. 

      To ensure better disclosure in the financial statements

    • C. 

      Both a) and b)

    • D. 

      None of the above

  • 160. 
    Max Ltd. spends Rs 10,00,000 towards construction of an office building. It also incurs Rs 50,000 towards construction of temporary store and uses the store for construction purposes. Upon completion of the construction of the building, the store is dismantled and the materials are sold for Rs 20,000. John, a supervisor, is paid Rs 60,000 as his salary during the period of construction and he devoted 2/3rd of his time for the construction of the building. The capitalized cost of office building is:
    • A. 

      Rs 11,10,000

    • B. 

      Rs 10,00,000

    • C. 

      Rs 10,90,000

    • D. 

      Rs 10,70,000

  • 161. 
    All expenditures of revenue nature are accounted for in:
    • A. 

      Balance Sheet

    • B. 

      Profit and loss account

    • C. 

      Trading account

    • D. 

      Either a) or b)

  • 162. 
    Non-recognition of a contingent asset is in accordance with the principle of
    • A. 

      Prudence

    • B. 

      Materiality

    • C. 

      Substance over form

    • D. 

      Going concern

  • 163. 
    Contingent liabilities are shown as
    • A. 

      Current liabilities in the balance sheet

    • B. 

      Long term liabilities in the balance sheet

    • C. 

      Disclosure in the footnotes to the balance sheet

    • D. 

      A loss in the Profit and Loss Account

  • 164. 
    A present liability of an uncertain amount, but which can be reliably estimated is a
    • A. 

      Contingent liability

    • B. 

      Estimate

    • C. 

      Provision

    • D. 

      Liability

  • 165. 
    Which of the following is not a characteristic of a contingent asset or a contingent liability?
    • A. 

      Contingent assets and liabilities arise from past events

    • B. 

      Contingencies may result in a gain or a loss

    • C. 

      The outcome of a contingency is uncertain and is based on a future event which may or may not happen

    • D. 

      The outcome of a contingency is within the control of the company

  • 166. 
    Reliance Ltd prepares Bank Reconciliation Statement to know the reasons for the difference between
    • A. 

      The balance as per bank column of cash book and pass book

    • B. 

      The balance as per cash column of cash book and pass book

    • C. 

      The balance as per cash column of cash book and bank column of cash book.

    • D. 

      None of these

  • 167. 
    On receipt of the bank statement, the cashier at Pantaloons finds out that that a cheque deposit of Rs 5,000 is missing. He prepares a bank reconciliation statement using the bank statement as the starting point. The cheque deposit is
    • A. 

      Added to the bank statement balance

    • B. 

      Subtracted from the cash book balance

    • C. 

      No adjustment in the reconciliation statement

    • D. 

      Added to the cash book balance

  • 168. 
    Bank balance as per pass book is Rs 25,000 (favourable). Cheques deposited but not cleared amounts to Rs 5,000 and cheques issued but not presented amounted to Rs 8,000. Bank charges charged directly from bank account Rs 800. What is the bank balance as per cash book?
    • A. 

      Rs 37,800

    • B. 

      Rs 22,800

    • C. 

      Rs 27,200

    • D. 

      Rs 22,000

  • 169. 
    On April 1, 2010, the balance in furniture account of Max Ltd. was Rs 5,67,000. The machine was purchased on April 1, 2008. The company charged depreciation at the rate of 10% per annum under diminishing balance method. On October 01, 2010, the company acquired a new furniture at a cost of Rs 60,000 and incurred Rs 6,000 for installation of the new furniture. The company changed the system of providing depreciation from the diminishing balance method to the straight line method with retrospective effect from April 1, 2008 at the same rate. The company decided to make necessary adjustments in respect of depreciation due to the change in the method in the year 2008-09. What is the further depreciation to be provided during 2010-11 upon change in the method of deprecication?
    • A. 

      Rs 7,778

    • B. 

      Rs 7,000

    • C. 

      Rs 6,300

    • D. 

      Rs 5,670

  • 170. 
    LMG Pneumatics purchased a machine on 01.04.2007 for Rs 1,20,000. Installation expenses were Rs 10,000. Residual value after 5 years is estimated to be Rs 5,000. On 1.07.2007, expenses for repair were incurred to the extent of Rs 2,000. Depreciation is provided @ 10% p.a. under written down value method. What is the depreciation for the 4th year?
    • A. 

      Rs 10,530

    • B. 

      Rs 24,000

    • C. 

      Rs 13,000

    • D. 

      Rs 9,477

  • 171. 
    Annuity method of providing depreciation is ideal for which of the following asset?
    • A. 

      Leases

    • B. 

      Patents

    • C. 

      Plant and machinery

    • D. 

      Furniture

  • 172. 
    Powergrid purchased a machine for Rs 1,00,000. Installation charges of Rs 10,000 were incurred on the machine. Depreciation was provided @ 10% on a straight line basis. The machine is sold after 5 years for Rs 40,000. The profit or loss on sale of machine is
    • A. 

      Rs 10,000 (loss)

    • B. 

      Rs 15,000 (profit)

    • C. 

      Rs 15,000 (loss)

    • D. 

      Rs 10,000 (profit)

  • 173. 
    Jai Ganesh sells goods to certain customers on a sale or return basis. At March 31, 2012, Jai Ganesh had goods costing Rs 1,00,000 with customers on a sale or return basis. Jai Ganesh has a mark-up of 25% on cost. Which of the following would be a part of year end accounting entries?
    • A. 

      Debit Sales (Rs 1,25,000); Debit Sundry Debtors (Rs 1,25,000)

    • B. 

      Debit Sundry Debtors (Rs 1,00,000); Credit Trading account (Rs 1,25,000)

    • C. 

      Debit Stock with Customers (Rs 1,00,000); Credit Sundry Debtors (Rs 1,00,000)

    • D. 

      Debit Sales (Rs 1,25,000); Debit Stock with Customers (Rs 1,00,000)

  • 174. 
    Bachhan sold 50 music systems at Rs 20,000 per music system. He was entitled to a commission of Rs 750 per television sold plus one fourth of the amount by which the gross sale proceeds less total commission there on exceeded a sum calculated at the rate of Rs 14,000 per television sold. What would be the amount of commission?
    • A. 

      Rs 1,25,000

    • B. 

      Rs 87,500

    • C. 

      Rs 37,500

    • D. 

      None of the three

  • 175. 
    Eastern India Trading Agency gave Rs 25,000 as bonus to employees. This bonus expense would be recorded in
    • A. 

      Trading account

    • B. 

      Profit and Loss account

    • C. 

      Profit and Loss Appropriation account

    • D. 

      A bonus is a discretionary payment, and is not reflected in the accounts - it is the personal expense of the owner

  • 176. 
    Max Ltd paid net salaries of Rs 5,00,000 after deducting income tax of Rs 50,000. What amount would be charged to profit and loss account in respect of salaries?
    • A. 

      Rs 4,50,000

    • B. 

      Rs 5,50,000

    • C. 

      Rs 5,00,000

    • D. 

      None of these

  • 177. 
    KetaKeti Ltd. manufactures and sells leather shoes. The company imports processed leather and manufactures shoes. On 1st January 2011, stock of processed leather amounted to Rs 95,000, work-in-progress amounted to Rs 76,300 and stock of final goods i.e. shoes amounted to 3,50,000. Manufacturing overhead expenses for the year amounted to Rs 2,00,000 while labour charges amounted to Rs 1,63,000. Purchase of processed leather during the year amounted to Rs 5,50,000. As on 31st December 2011, stock of processed leather was Rs 1,01,000, work in progress amounted to Rs 77,100 and the value of final goods amounted to 3,45,000. What was the total cost of shoes sold during the year (CoGS)?
    • A. 

      Rs 9,06,200

    • B. 

      Rs 9,11,200

    • C. 

      Rs 9,01,200

    • D. 

      None of the above

  • 178. 
    Ganguly sends out 400 bottles of coconut oil costing Rs 50 each to Uthappa. Ganguly directs Uthappa to sell the oil at 50% above cost. Uthappa draws a bill on Y for an amount equal to 60% of the total selling price of the consigned goods. What is the amount of the bill?
    • A. 

      Rs 16,000

    • B. 

      Rs 18,000

    • C. 

      Rs 12,000

    • D. 

      Rs 15,000

  • 179. 
    Tendulker sends goods on consignment to Messi costing Rs 4,00,000. Tendulker incurs expense of Rs 10,000 on freight. Messi’s selling expenses amount to Rs 6,000. Messi sells goods at 20% above cost. At the end of the period, Messi is able to sell 80% of the goods. What is the profit on consignment?
    • A. 

      Rs 56,000

    • B. 

      Rs 64,000

    • C. 

      Rs 50,000

    • D. 

      Rs 50,600

  • 180. 
    Ratan of Rajasthan consigns 1,000 units @ Rs 560 to Madan of Maharashtra. Ratan incurred Rs 10,000 on carriage. 50 units were lost in transit. Considering the nature of the product, the loss was treated as unavoidable. What is the new price of each unit?
    • A. 

      Rs 560

    • B. 

      Rs 600

    • C. 

      Rs 570

    • D. 

      Rs 590

  • 181. 
    Nitesh endorsed a bill of Rs 5,000 (accepted by Rajesh) to Dinesh on account of final settlement of Rs 6,200. The benefit of Rs 1,200 earned by Nitesh was
    • A. 

      Not shown in the books of Nitesh at all

    • B. 

      Credited to rebate account by Rs 1,200

    • C. 

      Credited to discount received account byВ Rs 1,200

    • D. 

      Credited to discount allowed account by Rs 1,200

  • 182. 
    Days of grace in relation to bill of exchange refers to
    • A. 

      The three additional days available to the acceptor or drawee to pay the bill

    • B. 

      The tenor of time after which a bill of exchange becomes payable

    • C. 

      One day grace if the due date is a public holiday

    • D. 

      The five additional days available to the acceptor or drawee to pay the bill

  • 183. 
    A promissory note does not require acceptance
    • A. 

      True

    • B. 

      False

  • 184. 
    Pavan draws a bill for Rs 2,000 on Qutub who accepts and returns it to Pavan. When the bill was about to mature, Qutub expressed his inability to meet it and requested Pavan to renew it. Pavan agreed but added 10% interest on the amount. What is the amount of the new bill drawn?
    • A. 

      Rs 1,200

    • B. 

      Rs 1,000

    • C. 

      Rs 1,800

    • D. 

      Rs 2,200

  • 185. 
    Nitesh endorsed a bill of Rs 5,000 (accepted by Rajesh) to Dinesh on account of final settlement of Rs 6,200. The benefit of Rs 1,200 earned by Nitesh was
    • A. 

      Not shown in the books of Nitesh at all

    • B. 

      Credited to rebate account by Rs 1,200

    • C. 

      Credited to discount received account byВ Rs 1,200

    • D. 

      Credited to discount allowed account by Rs 1,200

  • 186. 
    A study of how an increase or decrease in net exports would affect a nation's capital account is an example of:
    • A. 

      Micro economics

    • B. 

      Macro economics

    • C. 

      Normative economics

    • D. 

      Experimental economics

  • 187. 
    The elasticity of substitution between two perfect substitutes is
    • A. 

      Zero

    • B. 

      Greater than Zero

    • C. 

      Infinity

    • D. 

      Less than infinity

  • 188. 
    Price elasticity of one signifies that
    • A. 

      Demand is constant across different price levels

    • B. 

      Percentage change in quantity demanded is less than the percentage change in price

    • C. 

      The percentage change in quantity demanded is equal to the percentage change in price

    • D. 

      None of the above

  • 189. 
    The demand for a commodity increases with
    • A. 

      Decrease in the price of the commodity

    • B. 

      Increase in the income of consumers

    • C. 

      Increase in the prices of other goods

    • D. 

      Decrease in the number of consumers

  • 190. 
    Suppose the demand for snacks at a fast food centre is elastic. If the owner is considering raising prices then it can expect a
    • A. 

      A rise or fall in quantity demanded

    • B. 

      Rise in quantity demanded

    • C. 

      Fall in quantity demanded

    • D. 

      None of the above

  • 191. 
    The quantity of sweaters demanded increases from 9,200 to 11,400 in response to a decrease in their price from Rs 440 to Rs 380. What is the price elasticity of demand for the sweaters?
    • A. 

      0.014

    • B. 

      0.79

    • C. 

      0.14

    • D. 

      0.07

  • 192. 
    By consumer surplus, economists mean
    • A. 

      Household savings

    • B. 

      The area inside the budget line

    • C. 

      The difference between the maximum price a consumer is willing to pay for a product and its market price.

    • D. 

      The area between the average revenues and marginal revenue curves

  • 193. 
    State true or false: Total utility is maximum when marginal utility is at its maximum
    • A. 

      True

    • B. 

      False

  • 194. 
    An indifference curve is a curve which represents
    • A. 

      All those combination of goods which give same satisfaction to the consumer

    • B. 

      The equilibrium between demand and supply of a product

    • C. 

      Different satisfaction level derived by a consumer from consumption of different combination of goods

    • D. 

      None of the above

  • 195. 
    Economic analyses assumes the consumer to be:
    • A. 

      Indifferent

    • B. 

      Emotional

    • C. 

      Irrational

    • D. 

      Rational

  • 196. 
    If a 4% increase in diesel price leads to an increase in the quantity supplied by 8%:
    • A. 

      Supply is price elastic

    • B. 

      Supply is income elastic

    • C. 

      Price elasticity of supply is -2

    • D. 

      Price elasticity of demand is -2

  • 197. 
    Supply is
    • A. 

      A stock concept

    • B. 

      A flow and stock concept

    • C. 

      A flow concept

    • D. 

      None of the above

  • 198. 
    An increase in productivity should
    • A. 

      Lead to a contraction of supply

    • B. 

      Lead to an expansion of supply

    • C. 

      Lead to an outward shift of the supply curve

    • D. 

      Lead to an inward shift of the supply curve

  • 199. 
    The price elasticity of supply is +4. The price increases by 15%. Sales were originally 400 units. What will they be now?
    • A. 

      640 units

    • B. 

      240 units

    • C. 

      460 units

    • D. 

      404 units

  • 200. 
    _______ is not a factor of production
    • A. 

      Enterprise

    • B. 

      Capital

    • C. 

      Labour

    • D. 

      Man

  • 201. 
    Production function represents:
    • A. 

      The maximum amount of inputs required to produce a given amount of output

    • B. 

      The maximum amount of output that can be obtained from a given set of inputs

    • C. 

      The minimum amount of inputs required to produce a given amount of output

    • D. 

      B) and c)

  • 202. 
    Which of the following is not a characteristic of land?
    • A. 

      Land can neither be created or destroyed

    • B. 

      Supply of land is perfectly inelastic from the point of view of the economy

    • C. 

      Supply of land is relatively elastic from the point of view of a firm

    • D. 

      None of the above

  • 203. 
    Which of the following would not result in external economies of scale
    • A. 

      Availability of cheaper raw materials

    • B. 

      Availability of advanced machines for improved productivity

    • C. 

      Availability of good B-schools in the area supplying quality managers to business houses in the region

    • D. 

      Improved brand image of a company

  • 204. 
    _________ curve never touches the X axis but is downward sloping.
    • A. 

      Marginal cost

    • B. 

      Average fixed cost

    • C. 

      Average variable cost

    • D. 

      Total cost

  • 205. 
    If the supply curve is fixed, a fall in demand would cause
    • A. 

      No change in price but an increase in equilibrium quantity

    • B. 

      A decrease in price but an increase in equilibrium quantity

    • C. 

      An increase in price but a decrease in equilibrium quantity

    • D. 

      A decrease in price and a decrease in equilibrium quantity

  • 206. 
    If elasticity of demand is 1 for a monopoly firm, its marginal revenue would be
    • A. 

      Equal to 1

    • B. 

      Equal to 0

    • C. 

      Less than 1

    • D. 

      Greater than 1

  • 207. 
    Which of the following is true of a monopoly market?
    • A. 

      Presence of very few buyers in the market

    • B. 

      Freedom of entry and exit from the market

    • C. 

      The firm demand curve and the market demand curve are one and the same

    • D. 

      Presence of close substitutes in the market

  • 208. 
    Which of the following suggest that India is an emerging economy?
    • A. 

      Rise in national income

    • B. 

      Rise in Per Capita income

    • C. 

      Growing capital base

    • D. 

      All of the above

  • 209. 
    What percentage of our population is below the poverty line?
    • A. 

      Nearly 50%

    • B. 

      More than 30%

    • C. 

      Less than 30%

    • D. 

      Nearly 25%

  • 210. 
    Aamir's proposal dated June 1, 2012 offering Shahrukh a film role is posted on June 3, 2012. Shahrukh receives the offer on June 5, 2012, and posts his acceptance on June 6, 2012. The acceptance is received by Aamir on June 10, 2012. The acceptance is complete as against Shahrukh on
    • A. 

      4-Jun-12

    • B. 

      5-Jun-12

    • C. 

      10-Jun-12

    • D. 

      A different date - when the agreement is signed

  • 211. 
    An acceptance may be revoked
    • A. 

      Before its communication, as against the acceptor

    • B. 

      Before its communication, as against the proposer

    • C. 

      A proposal once made, cannot be revoked

    • D. 

      At any time

  • 212. 
    When the offeree offers to qualified acceptance of the offer subject to modifications and variations in the terms of original offer, he is said to have made a:
    • A. 

      Special Offer

    • B. 

      Counter Offer

    • C. 

      General Offer

    • D. 

      All of the above

  • 213. 
    An offer allowed to remain open for acceptance over a period of time is known as a
    • A. 

      Special Offer

    • B. 

      Counter Offer

    • C. 

      General Offer

    • D. 

      Standing Offer

  • 214. 
    The offer must be capable of creating legal relation.
    • A. 

      True

    • B. 

      False

  • 215. 
    The offer can be uncertain.
    • A. 

      True

    • B. 

      False

  • 216. 
    In India, the age of majority is:
    • A. 

      12 years

    • B. 

      16 years

    • C. 

      18 years

    • D. 

      None of the above

  • 217. 
    A contract made with or by a minor is:
    • A. 

      Void

    • B. 

      Voidable

    • C. 

      Valid

    • D. 

      Void-ab-initio

  • 218. 
    A minor cannot ratify the agreement on attaining majority.
    • A. 

      True

    • B. 

      False

  • 219. 
    A minor cannot always plead minority and is not stopped to do so even where he has taken any loan or entered into any contract.
    • A. 

      True

    • B. 

      False

  • 220. 
    An agreement entered into with free consent and lawful, but inadequate consideration is :
    • A. 

      Illegal

    • B. 

      Void

    • C. 

      Unenforceable

    • D. 

      Valid

  • 221. 
    Anil agrees to sell his house to Sudhir at below market value. The agreement to sell was based on a threat by Sudhir. The agreement is
    • A. 

      Voidable

    • B. 

      Void

    • C. 

      Valid

    • D. 

      Unlawful

  • 222. 
    A, B and C enter into an agreement for the division among them of gains acquired or to be acquired by fraud. The agreement is,
    • A. 

      Voidable

    • B. 

      Void

    • C. 

      Valid

    • D. 

      Unlawful

  • 223. 
    A promises to B to abandon a prosecution which he had instituted against B for robbery and B promises in lieu thereof to restore the value of the property robbed. The agreement is.
    • A. 

      Voidable

    • B. 

      Void

    • C. 

      Valid

    • D. 

      Unlawful

  • 224. 
    A promises to obtain for B and employment in the public service and B promises, is return, to pay Rs.1,000 to A. The agreement is,
    • A. 

      Voidable

    • B. 

      Void

    • C. 

      Valid

    • D. 

      Unlawful

  • 225. 
    Acts forbidden by law are those which are punishable under any statute as well as those prohibited by regulations or orders made in exercise of the authority conferred by the legislature.
    • A. 

      True

    • B. 

      False

  • 226. 
    Which of the following is a quasi-contract? 1) Right to recover the price of necessaries supplied 2) Right to recover money paid for another person 3) Right to recover for non-gratuitous act 4) Right to recover from a person if money is paid or thing is delivered by mistake or under coercion 5) Responsibility of finder of goods
    • A. 

      1, 2 and 3

    • B. 

      2, 3 and 4

    • C. 

      1, 3 and 5

    • D. 

      All are quasi- contracts

  • 227. 
    Salman Khan promises to pay Rs. 2,00,000 to his friend Arjun Rampal if his movie 'Ek tha Tiger' is a blockbuster. The contract is
    • A. 

      Void

    • B. 

      Illegal

    • C. 

      Wagering

    • D. 

      Contingent

  • 228. 
    An agreement to pay money or money’s worth on the happening or non happening of a specified uncertain event is a ____________
    • A. 

      Uncertain agreement

    • B. 

      Contingent contract

    • C. 

      Quasi contract

    • D. 

      Wagering agreement

  • 229. 
    The essentials for the formation of a valid contract are present in quasi-contracts.
    • A. 

      True

    • B. 

      False

  • 230. 
    Asha agrees to pay Babita Rs 2,000 if two parallel lines would intersect at a given point. The agreement is
    • A. 

      Contingent and valid

    • B. 

      Contingent and void

    • C. 

      Wagering and unenforceable

    • D. 

      Illegal and void

  • 231. 
    The event in a contingent contract must be essential to the contract.
    • A. 

      True

    • B. 

      False

  • 232. 
    The term 'quantum meruit' means
    • A. 

      As much as is earned

    • B. 

      According to the quantity of work done

    • C. 

      As much as merited

    • D. 

      All of the above

  • 233. 
    The damages which are awarded to the other party taking into consideration the injury caused to the feelings of the other person or depending upon the loss of credit or reputation suffered due to breach of contract is
    • A. 

      Exemplary damages

    • B. 

      Punitive damages

    • C. 

      Vindictive damages

    • D. 

      All of the above

  • 234. 
    In case of breach of contract, the measure of damages is
    • A. 

      Difference between the contract price and market price as on the date of breach of contract

    • B. 

      Difference between the market price on the date of contract and the contract price.

    • C. 

      Expected loss from the breach of contract

    • D. 

      Additional expenses that would be incurred for procuring goods from elsewhere

  • 235. 
    Ganesh, a farmer agrees to sell Sunil his entire crop of 10 tons of wheat at Rs10,000 per ton to be delivered on 20th November. On 1st November, Ganesh informs Sunil that he is not going to supply the goods. This is a case of
    • A. 

      Anticipatory breach of contract

    • B. 

      Actual breach of contract

    • C. 

      Both (a) and (b)

    • D. 

      Expected breach of contract

  • 236. 
    In case of deterioration caused to goods by delay in delivery, damages can be recovered from the carrier even without notice. Here, 'deterioration' implies
    • A. 

      Physical damages to the goods

    • B. 

      Loss of special opprtunity for sale

    • C. 

      Either (a) or (b)

    • D. 

      Both (a) or (b)

  • 237. 
    The areas where it is possible to apply different accounting policies are
    • A. 

      Valuation of investments

    • B. 

      Valuation of inventories

    • C. 

      Providing depreciation

    • D. 

      All of the above

  • 238. 
    Which one of the following is not an example of an accounting policy?
    • A. 

      Valuation of Inventories

    • B. 

      Valuation of investments

    • C. 

      Going concern

    • D. 

      Revenue recognition

  • 239. 
    All parts of financial statements are interrelated because they reflect different aspects of same transactions or other events.
    • A. 

      True

    • B. 

      False

  • 240. 
    Profit and Loss Account portrays value of economic resources controlled by an enterprise.
    • A. 

      True

    • B. 

      False

  • 241. 
    Tendulkar purchased a building for Rs 5,00,000 on April 1, 2006. On April 1, 2011, he found that it would cost Rs 15,00,000 to purchase a similar building. This value of Rs 15,00,000 is known as:
    • A. 

      Present Value

    • B. 

      Realizable Value

    • C. 

      Current Cost

    • D. 

      Market Value

  • 242. 
    Which of the following is not an accepted basis of measurement?
    • A. 

      Realisable Value

    • B. 

      Future Value

    • C. 

      Historical Cost

    • D. 

      Present Value

  • 243. 
    Which of the following is not an accepted basis of measurement?
    • A. 

      Realisable Value

    • B. 

      Future Value

    • C. 

      Historical Cost

    • D. 

      Present Value

  • 244. 
    What would you call the process of determination of amount of provision for doubtful debts?
    • A. 

      Application of accounting policy

    • B. 

      Setting the parameters for determination of the amount of provision of doubtful debts

    • C. 

      Estimation

    • D. 

      All of the above

  • 245. 
    Which of the following is not an accepted basis of measurement?
    • A. 

      Realisable Value

    • B. 

      Future Value

    • C. 

      Historical Cost

    • D. 

      Present Value

  • 246. 
    Valuation can be made based on
    • A. 

      Historical Cost

    • B. 

      Current Cost

    • C. 

      Realisable value

    • D. 

      All of the above

  • 247. 
    Satyam is reviewing its trial balance as of March 31, 2012, and observes that the debit total is greater than the credit total by Rs 7,500. In investigating, Satyam finds out that rental income has been overstated by Rs 2,500, and corrects the error. What will be the impact on the trial balance?
    • A. 

      Debits will exceed credits by Rs 10,000

    • B. 

      Debits will exceed credits by Rs 5,000

    • C. 

      Credits will exceed debits by Rs 5,000

    • D. 

      Credits will exceed debits by Rs 10,000

  • 248. 
    A trial balance will not 'agree' if
    • A. 

      If a sale entry of Rs 5,000 is recorded twice

    • B. 

      If a credit purchase of Rs 5,000 is recorded as a cash purchase

    • C. 

      Rs 2,000 received from debtors is credited to debtors for Rs 500 and debited to cash for Rs 2,000

    • D. 

      Rs 2,000 received from Khan is recorded as Rs 2,000 received from Kumar

  • 249. 
    A new articled clerk in a chartered accountant firm draws up a trial balance for the year ended 31st March 2011
    • A. 

      Rs 3,18,000

    • B. 

      Rs 2,57,000

    • C. 

      Rs 2,47,000

    • D. 

      Rs 3,08,000

  • 250. 
    The purpose of trial balance is
    • A. 

      To ensure the arithmetical accuracy of books of accounts

    • B. 

      To ensure better disclosure in the financial statements

    • C. 

      Both a) and b)

    • D. 

      None of the above

  • 251. 
    Max Ltd. spends Rs 10,00,000 towards construction of an office building. It also incurs Rs 50,000 towards construction of temporary store and uses the store for construction purposes. Upon completion of the construction of the building, the store is dismantled and the materials are sold for Rs 20,000. John, a supervisor, is paid Rs 60,000 as his salary during the period of construction and he devoted 2/3rd of his time for the construction of the building. The capitalized cost of office building is:
    • A. 

      Rs 11,10,000

    • B. 

      Rs 10,00,000

    • C. 

      Rs 10,90,000

    • D. 

      Rs 10,70,000

  • 252. 
    All expenditures of revenue nature are accounted for in:
    • A. 

      Balance Sheet

    • B. 

      Profit and loss account

    • C. 

      Trading account

    • D. 

      Either a) or b)

  • 253. 
    Non-recognition of a contingent asset is in accordance with the principle of
    • A. 

      Prudence

    • B. 

      Materiality

    • C. 

      Substance over form

    • D. 

      Going concern

  • 254. 
    Contingent liabilities are shown as
    • A. 

      Current liabilities in the balance sheet

    • B. 

      Long term liabilities in the balance sheet

    • C. 

      Disclosure in the footnotes to the balance sheet

    • D. 

      A loss in the Profit and Loss Account

  • 255. 
    A present liability of an uncertain amount, but which can be reliably estimated is a
    • A. 

      Contingent liability

    • B. 

      Estimate

    • C. 

      Provision

    • D. 

      Liability

  • 256. 
    Which of the following is not a characteristic of a contingent asset or a contingent liability?
    • A. 

      Contingent assets and liabilities arise from past events

    • B. 

      Contingencies may result in a gain or a loss

    • C. 

      The outcome of a contingency is uncertain and is based on a future event which may or may not happen

    • D. 

      The outcome of a contingency is within the control of the company

  • 257. 
    Reliance Ltd prepares Bank Reconciliation Statement to know the reasons for the difference between
    • A. 

      The balance as per bank column of cash book and pass book

    • B. 

      The balance as per cash column of cash book and pass book

    • C. 

      The balance as per cash column of cash book and bank column of cash book.

    • D. 

      None of these

  • 258. 
    On receipt of the bank statement, the cashier at Pantaloons finds out that that a cheque deposit of Rs 5,000 is missing. He prepares a bank reconciliation statement using the bank statement as the starting point. The cheque deposit is
    • A. 

      Added to the bank statement balance

    • B. 

      Subtracted from the cash book balance

    • C. 

      No adjustment in the reconciliation statement

    • D. 

      Added to the cash book balance

  • 259. 
    Bank balance as per pass book is Rs 25,000 (favourable). Cheques deposited but not cleared amounts to Rs 5,000 and cheques issued but not presented amounted to Rs 8,000. Bank charges charged directly from bank account Rs 800. What is the bank balance as per cash book?
    • A. 

      Rs 37,800

    • B. 

      Rs 22,800

    • C. 

      Rs 27,200

    • D. 

      Rs 22,000

  • 260. 
    On April 1, 2010, the balance in furniture account of Max Ltd. was Rs 5,67,000. The machine was purchased on April 1, 2008. The company charged depreciation at the rate of 10% per annum under diminishing balance method. On October 01, 2010, the company acquired a new furniture at a cost of Rs 60,000 and incurred Rs 6,000 for installation of the new furniture. The company changed the system of providing depreciation from the diminishing balance method to the straight line method with retrospective effect from April 1, 2008 at the same rate. The company decided to make necessary adjustments in respect of depreciation due to the change in the method in the year 2008-09. What is the further depreciation to be provided during 2010-11 upon change in the method of deprecication?
    • A. 

      Rs 7,778

    • B. 

      Rs 7,000

    • C. 

      Rs 6,300

    • D. 

      Rs 5,670

  • 261. 
    LMG Pneumatics purchased a machine on 01.04.2007 for Rs 1,20,000. Installation expenses were Rs 10,000. Residual value after 5 years is estimated to be Rs 5,000. On 1.07.2007, expenses for repair were incurred to the extent of Rs 2,000. Depreciation is provided @ 10% p.a. under written down value method. What is the depreciation for the 4th year?
    • A. 

      Rs 10,530

    • B. 

      Rs 24,000

    • C. 

      Rs 13,000

    • D. 

      Rs 9,477

  • 262. 
    Annuity method of providing depreciation is ideal for which of the following asset?
    • A. 

      Leases

    • B. 

      Patents

    • C. 

      Plant and machinery

    • D. 

      Furniture

  • 263. 
    Powergrid purchased a machine for Rs 1,00,000. Installation charges of Rs 10,000 were incurred on the machine. Depreciation was provided @ 10% on a straight line basis. The machine is sold after 5 years for Rs 40,000. The profit or loss on sale of machine is
    • A. 

      Rs 10,000 (loss)

    • B. 

      Rs 15,000 (profit)

    • C. 

      Rs 15,000 (loss)

    • D. 

      Rs 10,000 (profit)

  • 264. 
    Jai Ganesh sells goods to certain customers on a sale or return basis. At March 31, 2012, Jai Ganesh had goods costing Rs 1,00,000 with customers on a sale or return basis. Jai Ganesh has a mark-up of 25% on cost. Which of the following would be a part of year end accounting entries?
    • A. 

      Debit Sales (Rs 1,25,000); Debit Sundry Debtors (Rs 1,25,000)

    • B. 

      Debit Sundry Debtors (Rs 1,00,000); Credit Trading account (Rs 1,25,000)

    • C. 

      Debit Stock with Customers (Rs 1,00,000); Credit Sundry Debtors (Rs 1,00,000)

    • D. 

      Debit Sales (Rs 1,25,000); Debit Stock with Customers (Rs 1,00,000)

  • 265. 
    Bachhan sold 50 music systems at Rs 20,000 per music system. He was entitled to a commission of Rs 750 per television sold plus one fourth of the amount by which the gross sale proceeds less total commission there on exceeded a sum calculated at the rate of Rs 14,000 per television sold. What would be the amount of commission?
    • A. 

      Rs 1,25,000

    • B. 

      Rs 87,500

    • C. 

      Rs 37,500

    • D. 

      None of the three

  • 266. 
    Eastern India Trading Agency gave Rs 25,000 as bonus to employees. This bonus expense would be recorded in
    • A. 

      Trading account

    • B. 

      Profit and Loss account

    • C. 

      Profit and Loss Appropriation account

    • D. 

      A bonus is a discretionary payment, and is not reflected in the accounts - it is the personal expense of the owner

  • 267. 
    Max Ltd paid net salaries of Rs 5,00,000 after deducting income tax of Rs 50,000. What amount would be charged to profit and loss account in respect of salaries?
    • A. 

      Rs 4,50,000

    • B. 

      Rs 5,50,000

    • C. 

      Rs 5,00,000

    • D. 

      None of these

  • 268. 
    KetaKeti Ltd. manufactures and sells leather shoes. The company imports processed leather and manufactures shoes. On 1st January 2011, stock of processed leather amounted to Rs 95,000, work-in-progress amounted to Rs 76,300 and stock of final goods i.e. shoes amounted to 3,50,000. Manufacturing overhead expenses for the year amounted to Rs 2,00,000 while labour charges amounted to Rs 1,63,000. Purchase of processed leather during the year amounted to Rs 5,50,000. As on 31st December 2011, stock of processed leather was Rs 1,01,000, work in progress amounted to Rs 77,100 and the value of final goods amounted to 3,45,000. What was the total cost of shoes sold during the year (CoGS)?
    • A. 

      Rs 9,06,200

    • B. 

      Rs 9,11,200

    • C. 

      Rs 9,01,200

    • D. 

      None of the above

  • 269. 
    Ganguly sends out 400 bottles of coconut oil costing Rs 50 each to Uthappa. Ganguly directs Uthappa to sell the oil at 50% above cost. Uthappa draws a bill on Y for an amount equal to 60% of the total selling price of the consigned goods. What is the amount of the bill?
    • A. 

      Rs 16,000

    • B. 

      Rs 18,000

    • C. 

      Rs 12,000

    • D. 

      Rs 15,000

  • 270. 
    Tendulker sends goods on consignment to Messi costing Rs 4,00,000. Tendulker incurs expense of Rs 10,000 on freight. Messi’s selling expenses amount to Rs 6,000. Messi sells goods at 20% above cost. At the end of the period, Messi is able to sell 80% of the goods. What is the profit on consignment?
    • A. 

      Rs 56,000

    • B. 

      Rs 64,000

    • C. 

      Rs 50,000

    • D. 

      Rs 50,600

  • 271. 
    Ratan of Rajasthan consigns 1,000 units @ Rs 560 to Madan of Maharashtra. Ratan incurred Rs 10,000 on carriage. 50 units were lost in transit. Considering the nature of the product, the loss was treated as unavoidable. What is the new price of each unit?
    • A. 

      Rs 560

    • B. 

      Rs 600

    • C. 

      Rs 570

    • D. 

      Rs 590

  • 272. 
    Nitesh endorsed a bill of Rs 5,000 (accepted by Rajesh) to Dinesh on account of final settlement of Rs 6,200. The benefit of Rs 1,200 earned by Nitesh was
    • A. 

      Not shown in the books of Nitesh at all

    • B. 

      Credited to rebate account by Rs 1,200

    • C. 

      Credited to discount received account byВ Rs 1,200

    • D. 

      Credited to discount allowed account by Rs 1,200

  • 273. 
    Days of grace in relation to bill of exchange refers to
    • A. 

      The three additional days available to the acceptor or drawee to pay the bill

    • B. 

      The tenor of time after which a bill of exchange becomes payable

    • C. 

      One day grace if the due date is a public holiday

    • D. 

      The five additional days available to the acceptor or drawee to pay the bill

  • 274. 
    A promissory note does not require acceptance
    • A. 

      True

    • B. 

      False

  • 275. 
    Pavan draws a bill for Rs 2,000 on Qutub who accepts and returns it to Pavan. When the bill was about to mature, Qutub expressed his inability to meet it and requested Pavan to renew it. Pavan agreed but added 10% interest on the amount. What is the amount of the new bill drawn?
    • A. 

      Rs 1,200

    • B. 

      Rs 1,000

    • C. 

      Rs 1,800

    • D. 

      Rs 2,200

  • 276. 
    Nitesh endorsed a bill of Rs 5,000 (accepted by Rajesh) to Dinesh on account of final settlement of Rs 6,200. The benefit of Rs 1,200 earned by Nitesh was
    • A. 

      Not shown in the books of Nitesh at all

    • B. 

      Credited to rebate account by Rs 1,200

    • C. 

      Credited to discount received account byВ Rs 1,200

    • D. 

      Credited to discount allowed account by Rs 1,200

  • 277. 
    A study of how an increase or decrease in net exports would affect a nation's capital account is an example of:
    • A. 

      Micro economics

    • B. 

      Macro economics

    • C. 

      Normative economics

    • D. 

      Experimental economics

  • 278. 
    The elasticity of substitution between two perfect substitutes is
    • A. 

      Zero

    • B. 

      Greater than Zero

    • C. 

      Infinity

    • D. 

      Less than infinity

  • 279. 
    Price elasticity of one signifies that
    • A. 

      Demand is constant across different price levels

    • B. 

      Percentage change in quantity demanded is less than the percentage change in price

    • C. 

      The percentage change in quantity demanded is equal to the percentage change in price

    • D. 

      None of the above

  • 280. 
    The demand for a commodity increases with
    • A. 

      Decrease in the price of the commodity

    • B. 

      Increase in the income of consumers

    • C. 

      Increase in the prices of other goods

    • D. 

      Decrease in the number of consumers

  • 281. 
    Suppose the demand for snacks at a fast food centre is elastic. If the owner is considering raising prices then it can expect a
    • A. 

      A rise or fall in quantity demanded

    • B. 

      Rise in quantity demanded

    • C. 

      Fall in quantity demanded

    • D. 

      None of the above

  • 282. 
    The quantity of sweaters demanded increases from 9,200 to 11,400 in response to a decrease in their price from Rs 440 to Rs 380. What is the price elasticity of demand for the sweaters?
    • A. 

      0.014

    • B. 

      0.79

    • C. 

      0.14

    • D. 

      0.07

  • 283. 
    By consumer surplus, economists mean
    • A. 

      Household savings

    • B. 

      The area inside the budget line

    • C. 

      The difference between the maximum price a consumer is willing to pay for a product and its market price.

    • D. 

      The area between the average revenues and marginal revenue curves

  • 284. 
    State true or false: Total utility is maximum when marginal utility is at its maximum
    • A. 

      True

    • B. 

      False

  • 285. 
    An indifference curve is a curve which represents
    • A. 

      All those combination of goods which give same satisfaction to the consumer

    • B. 

      The equilibrium between demand and supply of a product

    • C. 

      Different satisfaction level derived by a consumer from consumption of different combination of goods

    • D. 

      None of the above

  • 286. 
    Economic analyses assumes the consumer to be:
    • A. 

      Indifferent

    • B. 

      Emotional

    • C. 

      Irrational

    • D. 

      Rational

  • 287. 
    If a 4% increase in diesel price leads to an increase in the quantity supplied by 8%:
    • A. 

      Supply is price elastic

    • B. 

      Supply is income elastic

    • C. 

      Price elasticity of supply is -2

    • D. 

      Price elasticity of demand is -2

  • 288. 
    Supply is
    • A. 

      A stock concept

    • B. 

      A flow and stock concept

    • C. 

      A flow concept

    • D. 

      None of the above

  • 289. 
    An increase in productivity should
    • A. 

      Lead to a contraction of supply

    • B. 

      Lead to an expansion of supply

    • C. 

      Lead to an outward shift of the supply curve

    • D. 

      Lead to an inward shift of the supply curve

  • 290. 
    The price elasticity of supply is +4. The price increases by 15%. Sales were originally 400 units. What will they be now?
    • A. 

      640 units

    • B. 

      240 units

    • C. 

      460 units

    • D. 

      404 units

  • 291. 
    _______ is not a factor of production
    • A. 

      Enterprise

    • B. 

      Capital

    • C. 

      Labour

    • D. 

      Man

  • 292. 
    Production function represents:
    • A. 

      The maximum amount of inputs required to produce a given amount of output

    • B. 

      The maximum amount of output that can be obtained from a given set of inputs

    • C. 

      The minimum amount of inputs required to produce a given amount of output

    • D. 

      B) and c)

  • 293. 
    Which of the following is not a characteristic of land?
    • A. 

      Land can neither be created or destroyed

    • B. 

      Supply of land is perfectly inelastic from the point of view of the economy

    • C. 

      Supply of land is relatively elastic from the point of view of a firm

    • D. 

      None of the above

  • 294. 
    Which of the following would not result in external economies of scale
    • A. 

      Availability of cheaper raw materials

    • B. 

      Availability of advanced machines for improved productivity

    • C. 

      Availability of good B-schools in the area supplying quality managers to business houses in the region

    • D. 

      Improved brand image of a company

  • 295. 
    _________ curve never touches the X axis but is downward sloping.
    • A. 

      Marginal cost

    • B. 

      Average fixed cost

    • C. 

      Average variable cost

    • D. 

      Total cost

  • 296. 
    If the supply curve is fixed, a fall in demand would cause
    • A. 

      No change in price but an increase in equilibrium quantity

    • B. 

      A decrease in price but an increase in equilibrium quantity

    • C. 

      An increase in price but a decrease in equilibrium quantity

    • D. 

      A decrease in price and a decrease in equilibrium quantity

  • 297. 
    If elasticity of demand is 1 for a monopoly firm, its marginal revenue would be
    • A. 

      Equal to 1

    • B. 

      Equal to 0

    • C. 

      Less than 1

    • D. 

      Greater than 1

  • 298. 
    Which of the following is true of a monopoly market?
    • A. 

      Presence of very few buyers in the market

    • B. 

      Freedom of entry and exit from the market

    • C. 

      The firm demand curve and the market demand curve are one and the same

    • D. 

      Presence of close substitutes in the market

  • 299. 
    Which of the following suggest that India is an emerging economy?
    • A. 

      Rise in national income

    • B. 

      Rise in Per Capita income

    • C. 

      Growing capital base

    • D. 

      All of the above

  • 300. 
    What percentage of our population is below the poverty line?
    • A. 

      Nearly 50%

    • B. 

      More than 30%

    • C. 

      Less than 30%

    • D. 

      Nearly 25%

  • 301. 
    Aamir's proposal dated June 1, 2012 offering Shahrukh a film role is posted on June 3, 2012. Shahrukh receives the offer on June 5, 2012, and posts his acceptance on June 6, 2012. The acceptance is received by Aamir on June 10, 2012. The acceptance is complete as against Shahrukh on
    • A. 

      4-Jun-12

    • B. 

      5-Jun-12

    • C. 

      10-Jun-12

    • D. 

      A different date - when the agreement is signed

  • 302. 
    An acceptance may be revoked
    • A. 

      Before its communication, as against the acceptor

    • B. 

      Before its communication, as against the proposer

    • C. 

      A proposal once made, cannot be revoked

    • D. 

      At any time

  • 303. 
    When the offeree offers to qualified acceptance of the offer subject to modifications and variations in the terms of original offer, he is said to have made a:
    • A. 

      Special Offer

    • B. 

      Counter Offer

    • C. 

      General Offer

    • D. 

      All of the above

  • 304. 
    An offer allowed to remain open for acceptance over a period of time is known as a
    • A. 

      Special Offer

    • B. 

      Counter Offer

    • C. 

      General Offer

    • D. 

      Standing Offer

  • 305. 
    The offer must be capable of creating legal relation.
    • A. 

      True

    • B. 

      False

  • 306. 
    The offer can be uncertain.
    • A. 

      True

    • B. 

      False

  • 307. 
    In India, the age of majority is:
    • A. 

      12 years

    • B. 

      16 years

    • C. 

      18 years

    • D. 

      None of the above

  • 308. 
    A contract made with or by a minor is:
    • A. 

      Void

    • B. 

      Voidable

    • C. 

      Valid

    • D. 

      Void-ab-initio

  • 309. 
    A minor cannot ratify the agreement on attaining majority.
    • A. 

      True

    • B. 

      False

  • 310. 
    A minor cannot always plead minority and is not stopped to do so even where he has taken any loan or entered into any contract.
    • A. 

      True

    • B. 

      False

  • 311. 
    An agreement entered into with free consent and lawful, but inadequate consideration is :
    • A. 

      Illegal

    • B. 

      Void

    • C. 

      Unenforceable

    • D. 

      Valid

  • 312. 
    Anil agrees to sell his house to Sudhir at below market value. The agreement to sell was based on a threat by Sudhir. The agreement is
    • A. 

      Voidable

    • B. 

      Void

    • C. 

      Valid

    • D. 

      Unlawful

  • 313. 
    A, B and C enter into an agreement for the division among them of gains acquired or to be acquired by fraud. The agreement is,
    • A. 

      Voidable

    • B. 

      Void

    • C. 

      Valid

    • D. 

      Unlawful

  • 314. 
    A promises to B to abandon a prosecution which he had instituted against B for robbery and B promises in lieu thereof to restore the value of the property robbed. The agreement is.
    • A. 

      Voidable

    • B. 

      Void

    • C. 

      Valid

    • D. 

      Unlawful

  • 315. 
    A promises to obtain for B and employment in the public service and B promises, is return, to pay Rs.1,000 to A. The agreement is,
    • A. 

      Voidable

    • B. 

      Void

    • C. 

      Valid

    • D. 

      Unlawful

  • 316. 
    Acts forbidden by law are those which are punishable under any statute as well as those prohibited by regulations or orders made in exercise of the authority conferred by the legislature.
    • A. 

      True

    • B. 

      False

  • 317. 
    Which of the following is a quasi-contract? 1) Right to recover the price of necessaries supplied 2) Right to recover money paid for another person 3) Right to recover for non-gratuitous act 4) Right to recover from a person if money is paid or thing is delivered by mistake or under coercion 5) Responsibility of finder of goods
    • A. 

      1, 2 and 3

    • B. 

      2, 3 and 4

    • C. 

      1, 3 and 5

    • D. 

      All are quasi- contracts

  • 318. 
    Salman Khan promises to pay Rs. 2,00,000 to his friend Arjun Rampal if his movie 'Ek tha Tiger' is a blockbuster. The contract is
    • A. 

      Void

    • B. 

      Illegal

    • C. 

      Wagering

    • D. 

      Contingent

  • 319. 
    An agreement to pay money or money’s worth on the happening or non happening of a specified uncertain event is a ____________
    • A. 

      Uncertain agreement

    • B. 

      Contingent contract

    • C. 

      Quasi contract

    • D. 

      Wagering agreement

  • 320. 
    The essentials for the formation of a valid contract are present in quasi-contracts.
    • A. 

      True

    • B. 

      False

  • 321. 
    Asha agrees to pay Babita Rs 2,000 if two parallel lines would intersect at a given point. The agreement is
    • A. 

      Contingent and valid

    • B. 

      Contingent and void

    • C. 

      Wagering and unenforceable

    • D. 

      Illegal and void

  • 322. 
    The event in a contingent contract must be essential to the contract.
    • A. 

      True

    • B. 

      False

  • 323. 
    The term 'quantum meruit' means
    • A. 

      As much as is earned

    • B. 

      According to the quantity of work done

    • C. 

      As much as merited

    • D. 

      All of the above

  • 324. 
    The damages which are awarded to the other party taking into consideration the injury caused to the feelings of the other person or depending upon the loss of credit or reputation suffered due to breach of contract is
    • A. 

      Exemplary damages

    • B. 

      Punitive damages

    • C. 

      Vindictive damages

    • D. 

      All of the above

  • 325. 
    In case of breach of contract, the measure of damages is
    • A. 

      Difference between the contract price and market price as on the date of breach of contract

    • B. 

      Difference between the market price on the date of contract and the contract price.

    • C. 

      Expected loss from the breach of contract

    • D. 

      Additional expenses that would be incurred for procuring goods from elsewhere

  • 326. 
    Ganesh, a farmer agrees to sell Sunil his entire crop of 10 tons of wheat at Rs10,000 per ton to be delivered on 20th November. On 1st November, Ganesh informs Sunil that he is not going to supply the goods. This is a case of
    • A. 

      Anticipatory breach of contract

    • B. 

      Actual breach of contract

    • C. 

      Both (a) and (b)

    • D. 

      Expected breach of contract

  • 327. 
    In case of deterioration caused to goods by delay in delivery, damages can be recovered from the carrier even without notice. Here, 'deterioration' implies
    • A. 

      Physical damages to the goods

    • B. 

      Loss of special opprtunity for sale

    • C. 

      Either (a) or (b)

    • D. 

      Both (a) or (b)