Competitive Exams: Commerce MCQs (Practice-Test 58 of 99)

  1. An effective direction tries to get work. Accomplished by subordinates without affecting their need satisfaction adversely. What. Is this principle of directing known as?

    1. Principle of maximum individual contribution

    2. Principle of harmony of objectives

    3. Principle of efficiency of direction

    4. Principle of authoritative direction

  2. Match List-I (Basic Components of Expectancy Theory) with List-II (Definition) and select the correct answer using i I the code given below the Lists:

    List-I List-II
    1. Expectancy

    2. Instrumentality

    3. Motivation

    4. Valence

    1. Force directing specific behavioural alternatives

    2. Preference of an individual for a particular outcome

    3. Probability that effort will lead to good performance

    4. Probability that successful performance will lead to certain outcomes

    • A
    • B
    • C
    • D
      • 1
      • 4
      • 2
      • 3
      • 2
      • 3
      • 1
      • 4
      • 1
      • 3
      • 2
      • 4
      • 2
      • 4
      • 1
      • 3
  3. The following information is given:

    • Sales 70, 000
    • Purchases 40, 000
    • Expenses 8, 000
    • Creditors at the end 15, 000
    • Creditors at the beginning 12, 000

    What is the value of cash from operations?

    1. Rs. 22, 000

    2. Rs. 19, 000

    3. Rs. 30, 000

    4. Rs. 25, 000

  4. Which one of the following statements is correct?

    1. If the value of current assets (in the current year) increases (compared with last year), the working capital decreases

    2. If the value of current liabilities (in the current year) decreases (compared with last year), the working capital increases

    3. If the value of current liabilities (in the current year) increases (compared with last year), the working capital increases

    4. If the value of current assets (in the current year) decreases (compared with last year), the working capital increases

  5. A machinery whose book value was Rs. 1, 20, 000 was sold for Rs. 1, 68, 000. The gain on sale of machinery was taken to Profit and Loss Account which ultimately showed net profit for the year as Rs. 1, 50, 000. What is the value of funds from operations?

    1. Rs. 1, 02, 000

    2. Rs. 1, 98, 000

    3. Rs. 48, 000

    4. Rs. 1, 68, 000

  6. Which one of the following is the correct statement? Business draws benefit from the society; it has an obligation to communicate its contribution to society. For this purpose accounting must

    1. deal with measurement and reporting of the performance to its stakeholders

    2. confine to going concern stipulation

    3. show its concern for revenue recognition and distribution

    4. be secluded from commercial consideration

  7. Which one of the following is the correct statement? The most important factor influencing evolution and growth of auditing is

    1. Industrial Revolution

    2. divorce of ownership from management

    3. establishment of the Institute of Chartered Accountants of India

    4. adoption of mechanised accounting

  8. Match List-I with List-II and select the correct answer using the code given below the Lists:

    List-I (Basis of Classification) List-II (Types of Audit)
    1. Time

    2. Subject matter

    3. Extent or coverage

    4. Organization structure

    1. Complete Audit

    2. Public Audit

    3. Periodical Audit

    4. Government Audit

    5. Cost Audit

    • A
    • B
    • C
    • D
      • 3
      • 4
      • 1
      • 5
      • 1
      • 5
      • 2
      • 3
      • 3
      • 5
      • 1
      • 4
      • 1
      • 4
      • 2
      • 5
  9. What does the total auding situation comprise?

    1. Inherent risk, process risk and control risk

    2. Appropriate evidence and oral evidence

    3. Detailed evidence and appropriate evidence

    4. Sufficient evidence and appropriate evidence