Competitive Exams: Commerce MCQs (Practice-Test 90 of 99)

  1. An arrangement in which the accounting work of each individual is checked by other members is known as

    1. Internal audit

    2. external audit

    3. internal check

    4. test checking

  2. The most important objective of internal audit is

    1. early detection of errors and frauds

    2. facilitating final audit

    3. Early finalization of annual accounts

    4. ensuring systematic accounting

  3. Consider the following documents:

    1. Audit Notebook

    2. Audit Program

    3. Audit Report

    4. Audit Files

    The correct sequence. In which an auditor prepares these documents is

    1. 2, 1, 4, 3

    2. 1, 2, 3, 4

    3. 2, 1, 3, 4

    4. 1, 2, 4, 3

  4. Test checking reduces the

    1. Powers of an auditor

    2. expenses of audit

    3. Work of an auditor

    4. liability of an auditor

  5. Which one of the following clearly defines ‘organization’ as a function?

    1. Management of business

    2. Accomplishment of goals through means

    3. Centralized authority in the funds of an individual to achieve business goals

    4. Process of assigning duties to individuals to achieve specific ends effectively

  6. Which one of the following is NOT applicable to a Co-operative form of business organization?

    1. Major portion of profit is distributed to members by way dividend

    2. Policy decisions are taken by the members in a General Meeting

    3. Membership is open to all having a common interest

    4. It is formed generally by the artisans and consumers of Limited means

  7. Match List I (Forms of business organization) with List II (Distinctive characteristics) and select the correct answer:

    List-I List-II
    1. Joint Hindu Family Firm

    2. Public Enterprise

    3. Section 25 of Company

    4. Co-operative organization

    1. Association of persons for their common interests

    2. Ownership and control by Government

    3. Ownership by copartners

    4. Limited company formed for promoting commerce, art, science etc.

    • A
    • B
    • C
    • D
      • 3
      • 2
      • 1
      • 4
      • 1
      • 3
      • 2
      • 4
      • 3
      • 2
      • 4
      • 1
      • 1
      • 3
      • 4
      • 2
  8. Consider the following statements: A mutual fund helps the investor in securing

    1. Professional management

    2. Diversification of risk

    3. Steady appreciation

    4. Lower cost of operation

    Of these statements which are correct?

    1. 1, 2, 3 and 4 are correct

    2. 1, 2 and 4 are correct

    3. 2 and 3 are correct

    4. 3 and 4 are correct.

  9. Which of the following are the means of marketing new issues of securities?

    1. By listing of securities

    2. Through jobbers and brokers.

    3. By private placing of securities

    4. Through privileged subscriptions

    Of these statements which are correct?

    1. 1 and 2

    2. 1, 2 and 3

    3. 3 and 4

    4. 1, 2, 3 and 4

  10. Dow and Jones, now popularly known as ‘Dow-Jones’ in the stock market parlance were the

    1. first financial journalists

    2. First bull operators in the New York stock exchange

    3. first to predict the Great Depression

    4. Architects of shop-floor trading

  11. “Arbitrage” means.

    1. A business arrangement by which a share broker tries to take advantage of difference in ‘Spot’ and ‘Futures’ prices of a share

    2. a business arrangement in which a share broker tries to take advantage of difference in prices between two Stock Exchange centers on a particular share

    3. an arbitration proceedings that is invoked by either the buyer or the seller when the other party is unable to meet its commitment

    4. A compromise arrangement by which the transaction is postponed to the next settlement date

  12. The primary function of Stock Exchange is to

    1. mobilize savings from the public for long-term investment

    2. offer a secondary market for shares and other securities

    3. facilitate barter deals between buyer and seller holding different securities

    4. Enable Reserve Bank of India to trade in Government securities in their efforts to control money supply in the economy

  13. Consider the following statements:

    1. Foreign institutional investors have been allowed to in-vest in Mutual Funds.

    2. The main objective of SEBI is to protect the investors.

    3. Private placement is the route through which Promoters contribution is mobilized by a public company.

    4. RBI lays down the guidelines governing the capital market operation.

    Of these statements:

    1. 1 and 2 are correct

    2. 2, 3 and 4 are correct

    3. 1, 2 and 3 are correct

    4. 1, 3 and 4 are correct

  14. Narasimha Committee has apart from other things, recommended

    1. expanding priority sector financing

    2. restricting priority sector financing

    3. asking new foreign and private sector banks to follow the existing norms for priority sector financing

    4. Total elimination of priority sector financing

  15. Which one of the following sets is correct with regard to liberalization in financial sector?

    1. Globalization, devaluation and privatization

    2. Deregulation, moral suasion and branch expansion

    3. Privatization, computerization and standardization

    4. Globalization, deregulation and privatization