Competitive Exams: Commerce MCQs (Practice-Test 15 of 99)

    • Assertion (A): Rules of Constructive Notice and Articles of Association are known to everyone who deals with the company.
    • Reason (R): After registration of the company, Memorandum and Articles of Association become public documents.
    1. Both A and R are individually true and R is the correct explanation of A

    2. Both A and R are individually true but R is not the correct explanation of A

    3. A is true but R is false

    4. A is false but R is true

    • Assertion (A): Doctrine of Indoor Management does not apply to forgery.
    • Reason (R): Company Law recognizes ultra virus or illegal acts.
    1. Both A and R are individually true and R is the correct explanation of A

    2. Both A and R are individually true but R is not the correct explanation of A

    3. A is true but R is false

    4. A is false but R is true

    • Assertion (A): A Director of a company in his individual capacity can exercise powers conferred on him by the Companies Act, Memorandum and the Articles of Association of the company.
    • Reason (R): The Directors have the power to enter into contract on behalf of the company with other parties.
    1. Both A and R are individually true and R is the correct explanation of A

    2. Both A and R are individually true but R is not the correct explanation of A

    3. A is true but R is false

    4. A is false but R is true

    • Assertion (A): Capital expenditure is incurred for the purpose of acquiring fixed asset.
    • Reason (R): Capital expenditure item is shown in the asset side of the Balance

    Sheet.

    1. Both A and R are individually true and R is the correct explanation of A

    2. Both A and R are individually true but R is not the correct explanation of A

    3. A is true but R is false

    4. A is false but R is true

    • Assertion (A): Staff officers are assigned an ‘authority of ideas’ and line officers an authority to command.
    • Reason (R): Functional authority is not restricted to managers of a particular type of department.
    1. Both A and R are individually true and R is the correct explanation of A

    2. Both A and R are individually true but R is not the correct explanation of A

    3. A is true but R is false

    4. A is false but R is true

  1. According to the Companies Act, account books of a company are to be preserved for the preceding

    1. six years

    2. eight years

    3. five years

    4. nine years

  2. Cost of goods purchased for resale is an example of

    1. capital expenditure

    2. revenue expenditure

    3. deferred revenue expenditure

    4. None of the above

  3. One of the important weaknesses of the decentralized structure is

    1. unsuitability in a fast-changing environment

    2. difficulty in pinpointing responsibilities

    3. difficulty in coordinating common functions

    4. difficulty in promoting innovations

  4. Which of the following is/are included in income and expenditure account?

    1. Accrued expenses

    2. Credit purchases

    3. Prepaid expenses

    4. Opening cash balance

    Select the correct answer using the codes given below

    1. 1 only

    2. 1 and 2

    3. 2 and 3

    4. 3 and 4

  5. For which of the following industry/industries, I. G. Patel Enquiry Committee was constituted by the Government of India for examining the justification of existence of Managing Agency System in the Company?

    1. Sugar industry

    2. Cotton-textile industry

    3. Jute Industry

    4. Cement Industry

    5. Paper Industry

    Select the correct answer using the codes given below:

    1. 1 and 2

    2. 5 only

    3. 1, 2, 3, 4 and 5

    4. 3 and 4

  6. Under which of the following circumstances, the Directors of a Company, being the agents/representatives become personally responsible?

    1. When they act beyond their power

    2. When they are convicted for any fraud

    3. When they have given any false statement in the prospectus

    4. When they have clearly accepted the responsibility of being liable for some fault of theirs.

    Select the correct answer using the codes given below:

    1. 2 and 3

    2. 1 and 4

    3. 1, 2, 3 and 4

    4. 1, 3 and 4

  7. Which one of the following types of duties, is not to be performed by a dulyappointed Secretary of a Company?

    1. All statutory duties of the Company

    2. Duties towards Directors of the Company

    3. Duties towards Shareholders of the Company

    4. Duties towards Registrar of the

    Company

  8. Within how much period a copy of the Profit and Loss Account and Balance Sheet of Company are to be filed with the Registrar?

    1. 14 days of Annual Meeting of the Company

    2. 21 days of Annual Meeting of the Company

    3. 30 days of Annual Meeting of the Company

    4. 45 days of Annual Meeting of the

    Company

  9. Following particulars are given for a firm: Closing Stock-Rs. 45, 000 Other Current Assets-Rs. 1, 05, 000 Current Liabilities-Rs. 70, 000 Sales-Rs. 3, 20, 000 The Working Capital Turnover Ratio is

    1. 5: 1

    2. 4: 1

    3. 3: 1

    4. 2: 1

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

    List-I List-II
    1. VED Analysis

    2. Ratio Analysis

    3. Fund-flow Analysis

    4. Income and Expenditure Analysis

    1. Sources and uses of fund

    2. Inventory control

    3. Analysis and interpretation of financial statements

    4. Non-profit organization

    • A
    • B
    • C
    • D
      • 1
      • 4
      • 2
      • 3
      • 2
      • 3
      • 1
      • 4
      • 1
      • 3
      • 2
      • 4
      • 2
      • 4
      • 1
      • 3
  11. Management by objectives is implemented in an organization by stages. One such stage action planning includes

    1. assigning responsibilities for achieving objectives

    2. choosing strategies appropriate to the objectives

    3. allocating resources for achieving objectives

    4. scheduling specific activities to achieve maximum resource utilization

    Identify horn the following combinations the correct sequence in which the, action planning stage& are implemented

    1. 1, 2, 3, 4

    2. 2, 3, 4, 1

    3. 3, 4, 1, 2

    4. 2, 1, 3, 4

  12. The concept ‘Management by Exception’ implies

    1. Exceptional contributions by the top management

    2. achievement of objectives by participation of all concerned

    3. that the immediate superior has to deal with deviations only and not with details of the work assigned to the subordinate

    4. that the highest officer need not worry about the results if he/she has delegated his/her authority