Competitive Exams: Commerce MCQs (Practice-Test 12 of 99)

  1. Match List I with List II and select the correct answer:

    List-I List-II
    1. Holding Company

    2. Government Company

    3. Public Company

    4. Private Company

    1. Maximum of 50 Members

    2. Minimum of 7 Members

    3. Partly Public

    4. Business Combination

    • A
    • B
    • C
    • D
      • 2
      • 1
      • 4
      • 3
      • 4
      • 1
      • 2
      • 3
      • 2
      • 3
      • 4
      • 1
      • 4
      • 3
      • 2
      • 1
  2. The Balance Sheet of M/s ABC as on 31 December is The liquidity Ratio is

    1. 2: 5

    2. 9: 20

    3. 1: 2

    4. 1: 1

  3. Four important acts performed by an Auditor in. Connection with an audit work are

    1. verification of assets and checking valuation of the same

    2. checking of Annual Accounts and Balance Sheet

    3. preparation of an audit programme

    4. test checking of financial, transactions

    The correct sequence in which these acts are performed by the Auditor is

    1. 2, 1, 3, 4

    2. 2, 3, 4, 1

    3. 3, 1, 4, 2

    4. 3, 4, 1, 2

  4. The type of control that provides a means for taking corrective action even after viability of the programme is known as

    1. pre-action control

    2. post-action control

    3. screening control

    4. steering control

  5. The Mechanistic Model of organizational design achieves high levels of production and efficiency because:

    1. of its de-emphasis of specialization and its emphasis on increasing job range

    2. it is highly decentralized and informal

    3. of both a and b above

    4. it is highly complex, centralized and formalized

  6. Match List I with List II and select the correct answer:

    List-I (Concepts of Accounting) List-II (Suitability of the Accounting Concepts)
    1. Money measurement concept

    2. Business entity concept

    3. Cost concept

    4. Dual aspect concept

    1. Applicable to all forms of business organizations

    2. Basic accounting

    3. Original purchase price of assets

    4. Applicable to those trans actions/events which are of financial nature in accounting

    • A
    • B
    • C
    • D
      • 4
      • 2
      • 3
      • 1
      • 3
      • 1
      • 4
      • 2
      • 4
      • 1
      • 3
      • 2
      • 3
      • 2
      • 4
      • 1
  7. Which of the following may be included in Audit Working Papers?

    1. Audit notebook

    2. Audit programmes

    3. Schedules of sundry debtors and sundry creditors

    4. Audit manuals

    Select the correct answer using the codes given below:

    1. 1 and 4

    2. 1 and 2

    3. 2, 3 and 4

    4. 1, 2 and 3

  8. Consider the following statements: An ‘Internal Control System’ may include

    1. interim audit

    2. internal audit

    3. financial controls

    Which of these statements are correct?

    1. 1, 2 and 3

    2. 1 and 2

    3. 2 and 3

    4. 1 and 3

  9. For a firm Opening Stock-Rs. 32, 000 Closing Stock-Rs. 34, 000 Sales-Rs. 4, 40, 000 Gross Profit Ratio-25% on sales The stock turnover ratio of the firm is

    1. 8.0

    2. 8.5

    3. 9.0

    4. 10.0

  10. The traditional concept is that authority flows from top to bottom. But a new concept of authority has been developed. This is known as acceptance theory. Who is the exponent of this view?

    1. Herbert A Simon

    2. Douglas McGregor

    3. Chester Barnard

    4. Keith Davis

  11. The principle that a natural and unbroken series of event is responsible for a loss or damage, is known as

    1. principle of subrogation

    2. principle of mitigation of loss

    3. principle of contribution

    4. principle of causa proxima

  12. Match List I (Different Types of Shares/Events) with List II (Transaction by the Company) and select-the correct answer:

    List-I List-II
    1. Sweat equity shares.

    2. Bonus shares

    3. Right shares

    4. Buy-back of shares

    1. A company gives its shares to the shareholders in the form of extra dividend

    2. Shares issued by the company at a discount

    3. A company provides an opportunity to the existing shareholders to purchase subsequent issue of shares on priority basis

    4. A company exercises its call option to buy shares from the shareholders

    • A
    • B
    • C
    • D
      • 3
      • 1
      • 2
      • 4
      • 2
      • 4
      • 3
      • 1
      • 3
      • 4
      • 2
      • 1
      • 2
      • 1
      • 3
      • 4
  13. If net profits are Rs. 30, 000 and expenses not resulting in the application of fund are Rs. 10, 000, then the funds from operation will be

    1. Rs. 30, 000

    2. Rs. 40, 000

    3. Rs. 10, 000

    4. Rs. 20, 000

  14. Premium Method is used for good will treatment in the case of

    1. retirement of partner

    2. admission of partner

    3. dissolution of partnership firm

    4. sale of partnership to a company

  15. Compatibility of technology refers to suitability of technology with respect to

    1. consumption pattern of consumers

    2. skills of available human resource

    3. development of product line of the company

    4. changing taste of consumers