Accounts Practice paper Model test B.Com. standard for Jr. Accountant in SAI

Accounts Practice paper Model test B.Com. standard for Jr. Accountant in SAI
Sports Authority of India (SAI), Jr Accounts Jobs Accounts practice test
Accounts objective Questions of BCOM Standard

1. Franking Machine is a—
(A) Duplicating machine
(B) Dictating machine
(C) Calculating machine
(D) Mailing machine
Ans. (D)

2. Given: Current Ratio = 3: 1
Quick Ratio = 1:1
Current Liabilities = Rs. 30, 000
What is the value of stock in trade?
(A) Rs. 45,000
(B) Rs. 60,000
(C) Rs. 90,000
(D) Rs. 50,000
Ans. (B)

3. When a supervisor is re-designated as section officer under the need hierarchy theory of motivation, it satisfied—
(A) Social needs
(B) Esteem needs
(C) Self- actualisation needs
(D) Economic needs
Ans. (B)

4. Principle of indemnity does not apply to—
(A) Life insurance
(B) Fire insurance
(C) Marine insurance
(D) Theft insurance
Ans. (A)

5. Cash sales are recorded in—
(A) Cash Book
(B) Sales Book
(C) Journal
(D) Ledger
Ans. (A)

6. Which one of the following is not a capital market instrument?
(A) Debentures
(B) Shares
(C) Public Sector Bonds
(D) Treasury Bills
Ans. (C)

7. Fixed Cost is known as—
(A) Special cost
(B) Direct cost
(C) Prime cost
(D) Overhead cost
Ans. (D)

8. Demand for electricity is—
(A) Inelastic
(B) Elastic
(C) Less elastic
(D) None of the above
Ans. (B)

9. The second largest agro-based industry in India is—
(A) Sugar industry
(B) Textile industry
(C) Food processing industry
(D) Poultry
Ans. (A)

10. Which of the following banks is known as a ‘lender of last resort’?
(A) SBI
(B) RBI
(C) NABARD
(D) IDBI
Ans. (B)

11. The primary objective of India’s monetary policy has been—
(A) Maintenance of price stability
(B) Granting more autonomy to the RBI
(C) Purchasing and selling of Govt. securities
(D) Financing unlimited deficit of the Central Govt.
Ans. (A)

12. Which of the following has always remained in focus as the main objective of India’s Five Year Plans?
(A) Poverty
(B) Removal of unemployment
(C) Economic growth
(D) Reduction in income inequities
Ans. (C)

13. Finance Commission is constituted every—
(A) Three years
(B) Six years
(C) Four years
(D) Five years
Ans. (D)

14. Which of the following is not a method of calculating national income?
(A) Income method
(B) Export-Import method
(C) Production method
(D) Expenditure method
Ans. (B)

15. Trade Credit is source of—
(A) Short-term finance
(B) Medium-term finance
(C) Long-term finance
(D) None of the above
Ans. (A)

16. Fiscal Policy is related to—
(A) Issue of currency
(B) Credit creation
(C) Public revenue and expenditure
(D) All of the above
Ans. (C)

17. SIDO is related to the development of—
(A) Small industries
(B) Soap industries
(C) Software industry
(D) Sugar industry
Ans. (A)

18. The world’s largest private employer is—
(A) Ford Motors
(B) Suzuki
(C) General Motors
(D) General Electric
Ans. (A)

19. ‘Street’ is a motorcycle brand of ?
(A) Escorts Ltd.
(B) Bajaj Auto
(C) Hero Honda Motors
(D) TVS Suzuki
Ans. (C)

20. The word ‘MODVAT’ is associated with—
(A) Medical Science
(B) Judiciary
(C) Banking
(D) Taxation
Ans. (D)

21. Fishing has been classified as—
(A) Extractive industry
(B) Genetic industry
(C) Manufacturing industry
(D) None of these
Ans. (A)

22. Which of the following is the top administrative organ of the company?
(A) Shareholders
(B) Managing Director
(C) General Manager
(D) Board of Directors
Ans. (D)

23. The founder of modern scientific management is—
(A) Henry Fayol
(B) McFarland
(C) F. W. Taylor
(D) Dickinson
Ans. (C)

24. The importer can not take delivery of goods unless he produces the—
(A) Bill of Sight
(B) Bill of Lading
(C) Shipping Bill
(D) Certificate of Origin
Ans. (B)

25. A statutory meeting requires a notice of at least—
(A) 7 days
(B) 4days
(C) 21 days
(D) 30 days
Ans. (C)

26. In which method amount of depreciation decreases every year—
(A) Straight line method
(B) Sum of years digit method
(C) Annuity method
(D) Sinking fund method
Ans. (B)

27. Under the Companies Act, a company must have—
(A) Board of Directors
(B) Managing Director
(C) Manager
(D) All of these
Ans. (A)

28. The most important clause in the Memorandum of Association of a company is—
(A) Name Clause
(B) Objects Clause
(C) Registered Office Clause
(D) Liability Clause
Ans. (B)

29. Trading A/c is a—
(A) Personal A/c
(B) Real A/c
(D) All of the above
(C) Nominal A/c
Ans. (C)

30. Working of a Stock Exchange is governed by—
(A) Govt. of India
(B) Controller of Capital Issue
(C) Governing Board of that Stock Exchange
(D) Finance Minister
Ans. (C)

31. Internal audit helps in—
(A) Internal check
(B) Audit in depth
(C) Statutory audit
(D) Internal control
Ans. (D)

32. Day-today cash transactions of a club are recorded in—
(A) Receipts and Payments A/c
(B) Income and Expenditure A/c
(C) Cash Book
(D) Journal
Ans. (B)

33. An entry of Rs, 320 has been debited to Rajesh’s account, as Rs. 230. It is an error of—
(A) Commission
(B) Omission
(C) Principle
(D) None of these
Ans. (A)

34. An expense of Rs. 200 on cartage of a new machine purchased should be debited to—
(A) Cash A/c
(B) Machine Ale
(C) Cartage A/c
(D) None of these
Ans. (B)

35. A customer’s cheque returned dishonoured is recorded in—
(A) Purchase Return Book
(B) Sales Return Book
(C) Cash Book
(D) Journal
Ans. (C)

36. Machinery purchased on account is recorded in—
(A) Purchase Book
(B) Cash Book
(C) Journal
(D) Ledger
Ans. (B)

37. Prepaid Insurance Account is—
(A) An expense
(B) A revenue
(C) An asset
(D)) None of the above
Ans. (C)

38. The credit balance in the bank account is—
(A) An asset
(B) A liability
(C) A capital
(D) A revenue
Ans. (A)

39. Stock Exchange deals with—
(A) Second hand securities
(B) Issue of equity shares
(C) Issue of preference shares
(D) Issue of debentures
Ans. (A)

40. A Public Corporation is created by—
(A) Ministry of Finance
(B) Ministry of Industry
(C) Special Act of Parliament
(D)) Ministry of Corporation
Ans. (C)

41. Chamber of Commerce is a form of—
(A) Trade Association
(B) Federation
(C) Merger
(D) Consolidation
Ans. (A)

42. Experts or specialists are attached to managers in—
(A) Line Organisation
(B) Line and Staff Organisation
(C) Functional Organisation
(D) None of these
Ans. (B)

43. When dividend is declared, it must be paid within—
(A) 30 days
(C) 45 days
(B) 42 days
(D) 60 days
Ans. (A)

44. Management is—
(A) An Art
(B) A Science
(C) An Art as well as a Science
(D) None of these
Ans. (C)

45. ‘Esprit de corps’ principle of management states that—
(A) There is need for team-work
(B) Labour turnover should be minimised
(C) Discipline should be maintained
(D) There should be only one superior for each subordinate
Ans. (A)

46. Which theory of motivation assumes that average human being dislike work?
(A) Theory ‘X’
(B) Theory ‘Y’
(C) Maslow’s theory
(D) Equity theory
Ans. (A)

47. The most rigorous test of liquidity is—
(A) Current ratio
(B) Acid test ratio
(C) Stock turnover ratio
(D) Debtors turnover ratio
Ans. (B)

48. Which of the following is a Public corporation?
(A) TISCO
(B) TELCO
(C) ONGC
(D) DCM
Ans. (C)

49. Which of the following assets does not depreciate?
(A) Machinery and equipments
(B) Patents
(C) Land
(D) Furniture
Ans. (C)

50. Of the following organisation, the easiest to wind up is the—
(A) Public Ltd. Company
(B) Multinational Corporation
(C) Private Ltd. Company
(D) Partnership Firm
Ans. (D)

51. The statutory meeting of a company is convened—
(A) Once in a year
(B) Once in the life time of the company
(C) Once in six months
(D) Once in three months
Ans. (B)

52. Secret reserves may be created by—
(A) Under-valuation of liabilities only
(B) Under-valuation of assets only
(C) Over-valuation of assets only
(D) Over-valuation of liabilities and under-valuation of assets
Ans. (D)

53. The current ratio of a firm is 2: 1. If it pays Rs. 5000 to it creditors, it will—
(A) Increase the current ratio
(B) Decrease the current ratio
(C) Increase working capital
(D) Neither increase nor decrease
Ans. (D)

54. E-commerce means—
(A) Economics Commerce
(B) Electronic Commerce
(C) Engineering Commerce
(D) Electrified Commerce
Ans. (B)

55. Which of the following is not a media of oral communication?
(A) T.V. Transmission
(B) Interview
(C) Questionnaire
(D) None of above
Ans. (D)

56. Which of the following is not the form of body language?
(A) Facial expression
(B) Eye contact
(C) Gestures
(D) Oral
Ans. (D)

57. “According to the principle of minimum sacrifice the total direct real burden on the tax-payers as a whole is as small as possible.”
(A) Dalton
(B) Musgrave
(C) Lindall
(D) Pigou
Ans. (A)

58. Density of population means—
(A) No. of person living in per sq. km.
(B) No. of person living in per km.
(C) No. of person living in each city
(D) No. of person living below poverty line
Ans. (A)

59. Ex-officio Chairman of Planning Commission is—
(A) President
(B) Prime Minister
(C) Agriculture Minister
(D) Finance Minister
Ans. (B)

60. Trade-tax is levied upon—
(A) Import of goods
(B) Export of goods
(C) Sale of goods
(D) Income of trader
Ans. (C)

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sample paper Accountant Jobs

sample paper Accountant Jobs
Practice test For BCOM Jobs
Objective Solved Questions For Accounts Recruitment
1. Inventory is valued at lower of the cost or net realizable value on account of the accounting principle of—
(A) Realization
(B) Consistency
(C) Conservatism
(D) None of the above
Ans. (A)

2. In the period of rising prices, LIFO method may result in—
(A) Lowering the profit
(B) Raising the profit
(C) Raising the tax liability
(D) None of the above
Ans. (B)

3. Given
Total assets turnover 4
Net Profits 10%
Total Assets Rs. 50000
Net profit will be—
(A) Rs. 15000
(B) Rs. 10000
(C) Rs. 25000
(D) Rs.20000
Ans. (D)

4. A company auditor addresses his audit report to
(A) Board of directors
(B) Members
(C) Managing director
(D) Company secretary
Ans. (B)

5. Bonus shares means shares issued to—
(A) Workers
(B) Existing equity shareholders
(C) Preferential shareholders in lieu of dividend
(D) Debenture holders in lieu of interest
Ans. (B)

6. Which of the following does not call for physical verification?
(A) Stock
(B) Plant
(C) Loose tools
(D) Goodwill
Ans. (D)

7. Cash from operations is equal to—
(A) Net profit + increase in current assets
(B) Net profit + decrease in current liabilities
(C) Profit from operation ± Adjustment of increase and decrease in current assets and liabilities
(D) Fund from operation ± Adjustment of increase and decrease in current assets and current liabilities
Ans. (C)

8. Average profit of a firm is Rs. 9000 Firm’s capital is Rs. 60000 and normal return on business is expected at 10%. The goodwill by capitalization method will be-
(A) Rs. 30000
(B) Rs. 20000
(C) Rs. 25000
(D) Rs. 40000
Ans. (A)

9. Which of the following is not a current liability?
(A) Bank overdraft
(B) Redeemable debentures
(C) Account payable
(D) Provision for bad debts
Ans. (B)

10. Amount of under writing commission payable on the issue of debentures is limited to—
(A) 2%
(B) 2.5%
(C) 3%
(D) 5%
Ans. (B)

11. Which of the following acid test ratio can be said to be satisfactory?
(A) 2: 1
(C) 1: 1
(B) 1: 2
(D) None of these
Ans. (C)

12. The two factor theory of motivation was propounded by—
(A) Peter Drucker
(B) Herzberg
(C) McGregor
(D) Maslow
Ans. (B)

13. Which of the following leadership styles is most commonly found now days?
(A) Autocratic
(B) Democratic
(C) Free rein
(D) Participative
Ans. (B)

14. Deciding in advance what is to be done in future is called—
(A) Management
(B) Coordination
(C) Planning
(D) Decision-making
Ans. (C)

15. The organisation structure where there is direct vertical relationship is called—
(A) Line organisation
(B) Chain organisation
(C) Command organisation
(D) All the above
Ans. (D)

16. When managers devote their attention only to those events where results are highly deviated from normal; ft is called—
(A) Management by objective
(B) Management by exception
(C) Management by crisis
(D) Management by choice
Ans. (B)

17. Under delegation of authority—
(A) Authority is given to subordinates
(B) Authority flows from the top to bottom
(C) Delegator of authority is not received of accountability
(D) All the above happens
Ans. (D)

18. The process of determining by observation and study and reporting pertinent information relating to the nature of specific job is called—
(A) Job specification
(B) Job evaluation
(C) Job analysis
(D) Job description
Ans. (C)

19. In case of a private company—
(A) There is restriction on the right to transfer of shares
(B) The number of members is restricted
(C) Invitation to public for the subscription of shares is prohibited
(D) All of the above
Ans. (D)

20. A person at anyone time can not be DIRECT of more than—
(A) 1 Company
(B) 7 Companies
(C) 15 Companies
(D) 20 Companies
Ans. (C)

21. Certificate of commencement of business is not required by a—
(A) Public company
(B) Any type of company
(C) Private company
(D) Private company subsidiary to a public company
Ans. (C)

22. Henry Fayol is known for—
(A) Scientific management
(B) Rationalization
(C) Industrial psychology
(D) Principles of managements
Ans. (D)

23. The principle of unity of command implies—
(A) Unity of thought and action
(B) Unity amongst subordinates
(C) Instructions from staff authority
(D) Instructions from line authority
Ans. (D)

24. A company has equity capital of Rs. 200000. Preference capital of Rs. 100000, 12%
debentures of Rs. 100000, long term loan of Rs. 200000 and short term loan of Rs. 100000. The capital gearing ratio will be—
(A) 1:1
(B) 0.5: 1
(C) 0.4: 1
(D) None of the above
Ans. (C)

25. In case of a company, total assets less outside liabilities is called—
(A) Net working capital
(B) Gross working capital
(C) Deferred liabilities
(D) Net worth
Ans. (D)

26. If opening sales is Rs. 10000 purchases Rs. 30000 direct expenses Rs. 4000 and closing stock Rs. 5000 the costs of goods is sold would be—
(A) Rs. 39000
(B) Rs. 40000
(C) Rs.41000
(D) Rs. 44000
Ans. (A)

27. Premium on issue balance sheet as—
(A) An asset
(B) A liability
(C) An expense
(D) A revenue
Ans. (B)

28. Which of the following is known as ‘backbone of auditing’?
(A) Verification of assets
(B) Internal check
(C) Vouching
(D) Internal audit
Ans. (C)

29. The data obtained from a newspaper are—
(A) Primary data
(B) Secondary data
(C) Both (A) and (B)
(D) None of these
Ans. (B)

30. Sale of long term investments indicates—
(A) A change in current assets
(B) Application of funds
(C) Increase in working capital
(D) Source of funds
Ans. (D)

31. Net working capital refers to—
(A) Current assets
(B) Current assets minus current liabilities
(C) Equity share capital minus fixed assets
(D) Retired earnings.
Ans. (B)

32. If sales Rs. 6000 gross profit is 1/3 on cost, purchases are R. 4900 and the closing stock is Rs. 900, the opening stock will be—
(A) Rs.400
(B) Rs.500
(C) Rs. 1100
(D) Rs. 2000
Ans. (B)

33. The primary objective of audit is—
(A) Detection and prevention of frauds
(B) Detection and prevention of errors
(C) Detection of frauds and errors
(D) To ensure the final accounts and statements exhibit true and fair position of business
Ans. (D)

34. ‘An auditor is a watch dog and not a blood hound’. This was observed in case of— (A) London oil storage company
(B) Kingston cotton Mills Limited
(C) London General Bank
(D) Delightful Cigarette Company Ltd.
Ans. (B)

35. If two or more sugar mills combine together, it is known—
(A) Horizontal combination
(B) Vertical combination
(C) Lateral combination
(D) None of the above
Ans. (A)

36. Surrender value is related to—
(A) Marine insurance
(B) General insurance
(C) Life insurance
(D) Fire insurance
Ans. (C)

37. Over capitalization refer to—
(A) Excess of capital
(B) Excess rate of dividend payment, on shares
(C) Over estimation of rate of capitalization
(D) Raising more capital than is warranted by its earning power
Ans. (D)

38. Motivation refers to—
(A) Coordinate the people
(B) Guide the working people
(C) Terrorize the people
(D) Inducing people to work willing by
Ans. (D)

39. Which of the following is not a barrier in communication—
(A) Fear and distrust
(B) Affection
(C) Perception
(D) Noise
Ans. (B)

40. “Management is an art of getting things done through and with formally organized group.” This definition has been by—
(A) Peter Drucker
(B) Henry Fayol
(C) Harod Koontz
(D) F. W. Taylor
Ans. (C)

41. Foreign exchange for import of goods is sanctioned by—
(A) Exim Bank
(B) Reserve Bank of India
(C) State Bank
(D) Ministry of commerce
Ans. (B)

42. The cost of a machine having a span of life of 5 years is Rs. 10000. It has a scrap value of Rs. 1000. The amount of depreciation in the first year under the sum of year’s digit method will be—
(A) Rs. 1600
(B) Rs. 1800
(C) Rs. 2000
(D) Rs. 3000
Ans. (D)

43. Given:
Gross profit Rs. 60000
Gross profit ratio: 20%
Debtor’s velocity 2 months
The amount of debtors will be—
(A) Rs. 30000
(B) Rs. 50000
(C) Rs. 120000
(D) Rs.200000
Ans. (B)

44. Premium on issue of shares can be used for—
(A) Issue of Bonus shares
(B) Payment of Dividends
(C) Payment of operating expenses
(D) Redemption of debentures
Ans. (A)

45. If current ratio is 25, quick ratio (1)5 and net working capital Rs. 15000. This value of
inventory will be—
(A) Rs. 10000
(B) Rs. 15000
(C) Rs. 37500
(D) Rs. 52500
Ans. (A)

46. claimed dividend is shown on the liability side of the balance sheet under the heading—
(A) Revenue and surplus
(B) Provisions
(C) Current liabilities
(D) Miscellaneous items
Ans. (C)

47. Accounting standards in India are prescribed by—
(A) Company Law Board
(B) Institute of charted accountants of India
(C) Institute of coat and works accountants of India
(D) Indian standard Board
Ans. (B)

48. Which of the following is not correct —
(A) Purchase + Opening stock—Cost of goods sold = Closing stock
(B) Opening stock + Purchases — Closing stock = Cost of goods sold
(C) Closing stock + Cost of goods sold — Purchases = Opening stock
(D) Cost of goods sold — Closing stock + Purchases = Opening stock
Ans. (D)

49. A company bought assets worth Rs. 360000 and in lieu issued debentures of Rs. 100 each at a discount of 10%. The number of debentures issued will be—
(A) 3000
(B) 3600
(C) 3960
(D) 400
Ans. (D)

50. A person got insured his goods worth Rs. 10000 for Rs. 8000 against fire. Loss by fire to him was Rs. 9000. He can claim—
(A) Rs. 8000
(B) Rs. 9000
(C) Rs. 10000
(D) Rs. 7200
Ans. (D)

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online accounting degree entrance exam preparation India

online accounting degree entrance exam preparation India

online accounting degree exam practice test

online bachelors degrees exam objective questions

So if you appearing for entrance exam for accounting degree,these are commerce questions to help you prepare online
Free online commerce test for Accounting degree entrance exams

1. The income from that house property is taxable under the head. Income from House property.

(A) The assessee has ownership on that

(B) The assessee uses that house for his business

(C) The assessee himself lives in that house

(D) The assessee has let out that house on rent for residence

Ans. (A)

2. Following is the deduction in respect of repair  under the head of income from house property—

(A) 25 % of Annual Value

(B) 30 % of Net Annual Value

(C) 1/5 of Annual Value

(D) 1/5 of Net Annual Value

Ans. (B)

3. Single entry system can not be maintained by—

(A) Sole proprietorship

(B) Partnership concerns

(C) Joint stock company

(D) All of these

Ans. (D)

4. Cash account will not be affected by—

(A) Cash paid to creditors

(B) Discount received

(C) Cash sales

(D) Cash received from debtors

Ans. (B)

5. Tax audit is compulsory in case of a person carrying on business whose gross receipt) turnover/sales and exceeds—

(A) Rs. 50 lakhs

(B) Rs. 40 lakhs

(C) Rs. l0 lakhs

(D) Rs. 25 lakhs

Ans. (B)

6. Current Ratio of a firm is 3:1 and working capital is Rs. 60000. What will be the amount of current Assets—

(A) Rs. 30000

(B) Rs90000

(C) Rs. 120000

(D) Rs. 180000

Ans. (B)

7. Mr. Rastogi of Meerut was declared insolvent. One of his liabilities related to one months rent due to his landlord. This liability will be treated as—

(A) Preferential Creditor

(B) Partly Secured Creditor

(C) Fully Secured Creditor

(D) Unsecured Creditor

Ans. (A)

8. When two or more companies liquidate to form a new company. It is called—

(A) Amalgamation

(B) Absorption

(C) Reconstruction

(D) Purchase of Business

Ans. (A)

9. A, B and C are partners in a firm. If D is to be admitted to the firm as a new partner—

(A) Old firm has to be dissolved

(B) Old partnership has to be dissolved

(C) Both the old firm and the old partnership have to be dissolved

(D) No need to dissolve either firm or the partnership

Ans. (D)

10. Remington sold one typewriter to Ramesh Chandra under installment purchase system on 1, January 1996, payment for which was to be made as under—

On 01.01.1996 -

On 31.12.1996 -

On 31.12.1997 -

On 31.12.1998 -

On 31.12.1999 -

Interest at 10% p.a. is included in each installment. The total interest charged amount

to-

(A) Rs.2100

(C) Rs. 1800

(B) Rs. 1950

(D) Rs. 1700

Ans. (B)

12. The liquidator of a company is entit1edio a remuneration of 2% on assets realized, and 3% on the amount distributed to unsecured creditors. The assets realized Rs. 100000 including cash balance of Rs. 3000. Amount available for distribution to unsecured creditors before paying liquidators remui4eration was Rs. 46350 liquidator’s remuneration will be—

(A) Rs.3100

(C) Rs. 3290

(B) Rs.3140

(D) Rs. 3350

Ans. (C)

13. EXIM Bank was established on—

(A) 1st Dec 1984

(B) 1st June 1985

(C) 1st Jan 1982

(D) 1st July 1980

Ans. (C)

14. For capital gain being long term capital gain, an assessee should retain the assets for a period of—

(A) 40 months

(B) 36 months

(C) More than 36 months

(D) Less than 36 months

Ans. (C)

15. The salary received by a member of parliament is—

(A) Exempt from Tax

(B) Taxable under the head of salary

(C) Taxable under the head of other sources

(D) Taxable under the lead of business

Ans. (C)

16. For the purpose of income tax it is necessary for agriculture income that—

(A) Land should be used for agricultural activities

(B) Land should be used for godown

(C) Land should be used for irrigation

(D) None of above

Ans. (A)

17. Depreciation is allowed on—

(A) Tangible Assets

(B) Current Assets

(C) Fixed Assets

(D) Intangible Assets

Ans. (C)

18. When shares are forfeited, the share capital account is debited by—

(A) Nominal value of forfeited shares

(B)Paid up amount of forfeited shares

(C) Called up amount on forfeited shares

(D) Forfeited amount of shares

Ans. (C)

19. The term ‘POIM’ for the four functions of management. Planning, organisation, integration and measuring was given by.—

(A) F.W. Taylor

(B) Harold Smiddy

(C) Tanon Brown

(D) Peter F. Drucker

Ans. (B)

20. The statutory meeting of a company is convened—

(A) Once in a year

(B) Once in the life time of the company

(C) Once in six months

(D) Once in three months

Ans. (B)

21. Secret reserves may be created by—

(A) Under-valuation of liabilities only

(B) Under-valuation of assets only

(C) Over-valuation of assets only

(D) Over-valuation of liabilities and under-valuation of assets

Ans. (D)

22. The current ratio of a firm is 2: 1. If it pays Rs. 5000 to it creditors, it will—

(A) Increase the current ratio

(B) Decrease the current ratio

(C) Increase working capital

(D) Neither increase nor decrease

Ans. (D)

3. e-commerce means—

(A) Economics Commerce

(B) Electronic Commerce

(C) Engineering Commerce

(D) Electrified Commerce

Ans. (B)

24. Which of the following is not a media of oral communication ?

(A) T.V. Transmission

(B) Interview

(C) Questionnaire

(D) None of above

Ans. (D)

25. Trade-tax is levied upon—

(A) Import of goods

(B) Export of goods

(C) Sale of goods

(D) Income of trader

Ans. (C)

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BEd Entrance Exam previous questions Commerce group

BEd Entrance Exam previous questions Commerce group
B.Ed. Entrance Question Bank
BEd Exam online Solved Paper prepare for BEd Entrance by Answering old and previous Questions
1. According to the concept of conservation, the stock in trade is valued at—
(A) Cost price
(B) Market price
(C) Cost or market price which ever is higher
(D) Cost or market price which ever is lower
Ans. (D)

2. The concept of conservation will have the effect of—
(A) Over statement of assets
(B) Understatement of assets
(C) Understatement of liabilities
(D) Understatement of provision for bad and doubtful debts
Ans. (B)

3. Non-financial information is not recorded in accounts due to—
(A) Accrual concept
(B) Entity concept
(C) Dual aspect concept
(D) Money measurement concept
Ans. (D)

4. Balance in ‘Nazrana a/c’ in the books of lessee is shown in—
(A) Landlords a/c
(B) P & L a/c
(C) Balance sheet assets side
(D) Balance sheet liabilities side
Ans. (C)

5. The hire-buyer charges depreciation on —
(A) Cash price of the asset
(B) Hire purchase price of the asset
(C) Higher of the two
(D) Lower of the two
Ans. (A)

6. In hire-purchase system, hire-buyer can maintain his accounts under—
(A) Asset accrued method
(B) Total cash price method
(C) Any of the two methods
(D) None of these
Ans. (C)

7. If the rate of gross profit for department X is 25% of cost, the amount of gross profit on sales of Rs. 100000 will be-—
(A) Rs. 16667
(B) Rs. 20000
(C) Rs. 25000
(D) Rs. 33333
Ans. (B)

8. Provision for bad debts of a foreign branch is converted at—
(A) Opening rate of exchange
(B) Closing rate of exchange
(C) Average rate of exchange
(D) Rate applicable to debtors
Ans. (B)

9. If goods are transferred from ‘X’ department to ‘Y’ department at cost + 25%, the amount of stock reserve on closing stock of Rs. 20000 in ‘Y’ department will be—
(A) Rs. 4000
(B) Rs. 5000
(C) Rs. 6000
(D) Rs. 3333
Ans. (A)

10. If out of the bills of Rs. 10000 discounted by the insolvent bills of Rs. 4000 are likely be dishonored, unsecured creditors will include in respect of them an amount of—
(A) Rs. 10000
(B) Rs.6000
(C) Rs. 4000
(D) None of the above
Ans. (C)

11. Partnership firm engaged in banking business can have maximum—
(A) 5 partners
(B) 10 partners
(C) 20 partners
(D) Any number of partners
Ans. (B)

12. Suppose, the partnership deed provides for a salary of Rs. 5000 p.m. to partner ‘X’. If ‘X’ withdraws only Rs. 3000 in a month, the remaining Rs. 2000 will be—
(A) Debited to his capital a/c
(B) Credited to his drawing a/c
(C) Credited to his current a/c
(D) Credited to P & L adjustment a/c
Ans. (A)

13. In absence of any provisions in the partnership agreement, partners can charge on the loans given by them to the firm—
(A) Interest at 6% p.a.
(B) Interest at 12% p.a.
(C) Interest at 15% p.a.
(D) No interest
Ans. (A)

14. A, B and C are partners sharing profits and losses in the ratio 4 : 3 : 2 D is admitted for 1/10th share, the new ratio will be—
(A) 4: 4: 3: 2
(B) 4: 3: 2: 1
(C) 5: 4: 3: 2
(D) None of the above
Ans. (B)

15. A and B shared profit in the ratio of 3: 2 C was admitted as a partner for 1/5th share. He acquires 3/20th from A and 1/20th from B. The new profit sharing ratio would be—
(A) 10:6:4
(B) 6:10:4
(C) 8:8:4
(D) 9:7:4
Ans. (D)

16. Goodwill of a firm of A and B is valued at Rs. 60,000. Goodwill appears in the books at Rs. 24,000. C is admitted for 1/4th share. He will be required to bring for goodwill—
(A) Rs.21, 000
(B) Rs.9, 000
(C) Rs. 15,000
(D) Rs. 6,000
Ans. (D)

17. A plant worth Rs. 800000 has been insured for Rs. 600000. The loss on account of fire is Rs. 500000. The insurance company under average clause will bear the loss to extent of—
(A) Rs. 500000
(B) Rs.600000
(C) Rs. 800000
(D) Rs. 375000
Ans. (A)

18. It is not an item of Income with reference to a voyage a/c—
(A) Passage money
(B) Freight
(C) Primage
(D) Address commission
Ans. (D)

19. The formats of the profit and loss account and Balance sheet in the case of a banking
company have been revised w.e.f.—
(A) 1st April 1949
(B) 1st April 1991
(C) 1st April 1992
(D) 1st April 1956
Ans. (C)

20. If accrued outstanding premium is given in• the trial balance of a general insurance company, then it will be shown in—
(A) Revenue Account
(B) Balance Sheet
(C) Both revenue Account & Balance Sheet
(D) None of the above
Ans. (B)

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FCI General Accounting and Finance Sample Solved Questions Model Paper MT (Accounts).

FCI General Accounting and Finance Sample Solved Questions Model Paper MT (Accounts).
FCI Food Corporation of India test for MT (Accounts) consists of 90 questions on General Accounting and Finance.
FCI MT accounts practice paper

1. According to the concept of conservation, the stock in trade is valued at—
(A) Cost price
(B) Market price
(C) Cost or market price which ever is higher
(D) Cost or market price which ever is lower
Ans. (D)

2. The concept of conservation will have the effect of—
(A) Over statement of assets
(B) Understatement of assets
(C) Understatement of liabilities
(D) Understatement of provision for bad and doubtful debts
Ans. (B)

3. Non-financial information is not recorded in accounts due to—
(A) Accrual concept
(B) Entity concept
(C) Dual aspect concept
(D) Money measurement concept
Ans. (D)

4. Balance in ‘Nazrana’s a/c’ in the books of lessee is shown in—
(A) Landlords a/c
(B) P&L a/c
(C) Balance sheet assets side
(D) Balance sheet liabilities side
Ans. (C)

5. The hire-buyer charges depreciation on—
(A) Cash price of the asset
(B) Hire purchase price of the asset
(C) Higher of the two
(D) Lower of the two
Ans. (A)

6. In hire-purchase system, hire-buyer can maintain his accounts under—
(A) Asset accrued method
(B) Total cash price method
(C) Any of the two methods
(D) None of these
Ans. (C)

7. If the rate of gross profit for department X is 25% of cost, the amount of gross profit on sales of Rs. 100000 will be-—
(A) Rs. 16667
(B) Rs. 20000
(C) Rs. 25000
(D) Rs. 33333
Ans. (B)

8. Provision for bad debts of a foreign branch is converted at—
(A) Opening rate of exchange
(B) Closing rate of exchange
(C) Average rate of exchange
(D) Rate applicable to debtors
Ans. (B)

9. If goods are transferred from ‘X’ department to ‘Y’ department at cost +25%, the amount of stock reserve on closing stock of Rs. 20000 in ‘Y’ department will be—
(A) Rs. 4000
(B) Rs. 5000
(C) Rs. 6000
(D) Rs. 3333
Ans. (A)

10. If out of the bills of Rs. 10000 discounted by the insolvent bills of Rs. 4000 are likely be dishonoured, unsecured creditors will include in respect of them an amount of—
(A) Rs. 10000
(B) Rs.6000
(C) Rs. 4000
(D) None of the above
Ans. (C)

11. Partnership firm engaged in banking business can have maximum—
(A) 5 partners
(B) 10 partners
(C) 20 partners
(D) Any number of partners
Ans. (B)

12. Suppose, the partnership deed provides for a salary of Rs. 5000 p.m. to partner ‘X’. If ‘X’ withdraws only Rs. 3000 in a month, the remaining Rs. 2000 will be—
(A) Debited to his capital a/c
(B) Credited to his drawing a/c
(C) Credited to his current a/c
(D) Credited to P & L adjustment a/c
Ans. (A)

13. In absence of any provisions in the partnership agreement, partners can charge on the loans given by them to the firm—
(A) Interest at 6% p.a.
(B) Interest at 12% p.a.
(C) Interest at 15% p.a.
(D) No interest
Ans. (A)

14. A, B and C are partners sharing profits and losses in the ratio 4 : 3 : 2 D is admitted for 1/10th share, the new ratio will be—
(A) 4 : 4 : 3 : 2
(B) 4: 3 : 2: 1
(C) 5 : 4 : 3 : 2
(D) None of the above
Ans. (B)

15. A and B shared profit in the ratio of 3 : 2 C was admitted as a partner for 1/5th share. He acquires 3/20th from A and 1/20th from B. The new profit sharing ratio would be—
(A) 10:6:4
(B) 6:10:4
(C) 8:8:4
(D) 9:7:4
Ans. (D)

16. Goodwill of a firm of A and B is valued at Rs. 60000. Goodwill appears in the books at Rs. 24000. C is admitted for 1/4th share. He will be required to bring for goodwill—
(A) Rs.21000
(B) Rs.9000
(C) Rs. 15000
(D) Rs. 6000
Ans. (D)

17. A plant worth Rs. 800000 has been insured for Rs. 600000. The loss on account of fire is Rs. 500000. The insurance company under average clause will bear the loss to extent of—
(A) Rs. 500000
(C) Rs. 800000
(B) Rs.600000
(D) Rs. 375000
Ans. (A)

18. It is not an item of Income with reference to a voyage a/c—
(A) Passage money
(B) Freight
(C) Primage
(D) Address commission
Ans. (D)

19. The formats of the profit and loss account and Balance sheet in the case of a banking company have been revised w.e.f.—
(A) 1st April 1949
(B) 1st April 1991
(C) 1st April 1992
(D) 1st April 1956
Ans. (C)

20. If accured outstanding premium is given in the trial balance of a general insurance company, then it will be shown in—
(A) Revenue Account
(B) Balance Sheet
(C) Both revenue Account & Balance Sheet
(D) None of the above
Ans. (B)

21. Inventory is valued at lower of the cost or net realisable value on account of the accounting principle of—
(A) Realisation
(B) Consistency
(C) Conservatism
(D) None of the above
Ans. (A)

22. In the period of rising prices, LIFO method may result in—
(A) Lowering the profit
(B) Raising the profit
(C) Raising the tax liability
(D) None of the above
Ans. (B)

23. Given,
Total assets turnover 4
Net Profits 10%
Total Assets Rs. 50000
Net profit will be—
(A) Rs. 15000
(B) Rs. 10000
(C) Rs. 25000
(D) Rs.20000
Ans. (D)

24. A company auditor addresses his audit report to-
(A) Board of directors
(B) Members
(C) Managing director
(D) Company secretary
Ans. (B)

25. Bonus shares means shares issued to—
(A) Workers
(B) Existing equity shareholders
(C) Preferential shareholders in lieu of dividend
(D) Debenture holders in lieu of interest
Ans. (B)

26. Which of the following does not call for physical verification?
(A) Stock
(B) Plant
(C) Loose tools
(D) Goodwill
Ans. (D)

27. Cash from operations is equal to—
(A) Net profit + increase in current assets
(B) Net profit + decrease in current liabilities
(C) Profit from operation ± Adjustment of increase and decrease in current assets and liabilities
(D) Fund from operation ± Adjustment of increase and decrease in current assets and current liabilities
Ans. (C)

28. Average profit of a firm is Rs. 9000 Firm’s capital is Rs. 60000 and normal return on business is expected at 10%. The goodwill by capitalisation method will be-
(A) Rs. 30000
(B) Rs. 20000
(C) Rs. 25000
(D) Rs. 40000
Ans. (A)

29. Which of the following is not a current liability?
(A) Bank overdraft
(B) Redeemable debentures
(C) Account payable
(D) Provision for bad debts
Ans. (B)

30. Amount of under writing commission payable on the issue of debentures is limited to—
(A) 2%
(B) 2.5%
(C) 3%
(D) 5%
Ans. (B)

31. Which of the following acid test ratio can be said to be satisfactory?
(A) 2: 1
(C) 1: 1
(B) 1: 2
(D) None of these
Ans. (C)

32. The two factor theory of motivation was propounded by—
(A) Peter Drucker
(B) Herzberg
(C) McGregor
(D) Maslow
Ans. (B)

33. Which of the following leadership styles is most commonly found now a day?
(A) Autocratic
(B) Democratic
(C) Free rein
(D) Participative
Ans. (B)

34. Deciding in advance what is to be done in future is called—
(A) Management
(B) Coordination
(C) Planning
(D) Decision-making
Ans. (C)

35. The organisation structure where there is direct vertical relationship is called—
(A) Line organisation
(B) Chain organisation
(C) Command organisation
(D) All the above
Ans. (D)

36. When managers devote their attention only to those events where results are highly deviated from normal; ft is called—
(A) Management by objective
(B) Management by exception
(C) Management by crisis
(D) Management by choice
Ans. (B)

37. Under delegation of authority—
(A) Authority is given to subordinates
(B) Authority flows from top to bottom
(C) Delegator of authority is not received of accountability
(D) All the above happens
Ans. (D)

38. The process of determining by observation and study and reporting pertinent information relating to the nature of specific job is called—
(A) Job specification
(B) Job evaluation
(C) Job analysis
(D) Job description
Ans. (C)

39. In case of a private company—
(A) There is restriction on the right to transfer of shares
(B) The number of members is restricted
(C) Invitation to public for the subscription of shares is prohibited
(D) All of the above
Ans. (D)

40. A person at anyone time can not be DIRECT of more than—
(A) 1 Company
(B) 7 Companies
(C) 15 Companies
(D) 20 Companies
Ans. (C)

41. Certificate of commencement of business is not required by a—
(A) Public company
(B) Any type of company
(C) Private company
(D) Private company subsidiary to a public company
Ans. (C)

42. Henry Fayol is known for—
(A) Scientific management
(B) Rationalisation
(C) Industrial psychology
(D) Principles of managements
Ans. (D)

43. The principle of unity of command’ implies—
(A) Unity of thought and action
(B) Unity amongst subordinates
(C) Instructions from staff authority
(D) Instructions from line authority
Ans. (D)

44. A company has equity capital of Rs. 200000. Preference capital of Rs. 100000, 12% debentures of Rs. 100000, long term loan of Rs. 200000 and short term loan of Rs. 100000. The capital gearing ratio will be—
(A) 1:1
(B) 0.5: 1
(C) 0.4: 1
(D) None of the above
Ans. (C)

45. In case of a company, total assets less outside liabilities is called—
(A) Net working capital
(B) Gross working capital
(C) Deferred liabilities
(D) Net worth
Ans. (D)

46. If opening sales is Rs. 10000 purchases Rs. 30000 direct expenses Rs. 4000 and closing stock Rs. 5000 the costs of goods is sold would be—
(A) Rs. 39000
(B) Rs. 40000
(C) Rs.41000
(D) Rs. 44000
Ans. (A)

47. Premium on issue of shares is shown in balance sheet as—
(A) An asset
(B) A liability
(C) An expense
(D) A revenue
Ans. (B)

48. Which of the following is known as ‘backbone of auditing’?
(A) Verification of assets
(B) Internal check
(C) Vouching
(D) Internal audit
Ans. (C)

49. A limited company? 100 shares of Rs. 10/- cash fully called up on which Rs. 4/- per share was paid up. The company reissued 50 shares at the rates of Rs. 8/- each. The amount transferred to capital reserve will be—
(A) Rs. 500
(B) Rs.200
(C) Rs. 250
(D) Rs. 100
Ans. (D)

50. Sale of long term investments indicates—
(A) A change in current assets
(B) Application of funds
(C) Increase in working capital
(D) Source of funds
Ans. (D)

51. Net working capital refers to—
(A) Current assets
(B) Current assets minus current liabilities
(C) Equity share capital minus fixed assets
(D) Retired earnings.
Ans. (B)

52. If sales Rs. 6000 gross profit is 1/3 on cost, purchases are R. 4900 and the closing stock is Rs. 900, the opening stock will be—
(A) Rs.400
(B) Rs.500
(C) Rs. 1100
(D) Rs. 2000
Ans. (B)

53. The primary objective of audit is—
(A) Detection and prevention of frauds
(B) Detection and prevention of errors
(C) Detection of frauds and errors
(D) To ensure the final accounts and statements exhibit true and fair position of business
Ans. (D)

54. ‘An auditor is a watch dog and not a blood hound’. This was observed in case of— (A) London oil storage company
(B) Kingston cotton Mills Limited
(C) London General Bank
(D) Delightful Cigarette Company Ltd.
Ans. (B)

55. If two or more sugar mills combine together, it is known—
(A) Horizontal combination
(B) Vertical combination
(C) Lateral combination
(D) None of the above
Ans. (A)

56. Surrender value is related to—
(A) Marine insurance
(B) General insurance
(C) Life insurance
(D) Fire insurance
Ans. (C)

57. Over capitalisation refer to—
(A) Excess of capital
(B) Excess rate of dividend payment, on shares
(C) Over estimation of rate of capitalisation
(D) Raising more capital than is warranted by its earning power
Ans. (D)

58. Motivation refers to—
(A) Coordinate the people
(B) Guide the working people
(C) Terrorise the people
(D) Inducing people to work willing by
Ans. (D)

59. Which of the following is not a barrier in communication—
(A) Fear and distrust
(B) Affection
(C) Perception
(D) Noise
Ans. (B)

60. “Management is an art of getting things done through and with formally organised group.” This definition has been by—
(A) Peter Drucker
(B) Henry Fayol
(C) Harod Koontz
(D) F. W. Taylor
Ans. (C)

61. Foreign exchange for import of goods is sanctioned by—
(A) Exim Bank
(B) Reserve Bank of India
(C) State Bank
(D) Ministry of commerce
Ans. (B)

62. The cost of a machine having a span of life of 5 years is Rs. 10000. It has a scrap value of Rs. 1000. The amount of depreciation in the first year under the sum of year’s digit method will be—
(A) Rs. 1600
(B) Rs. 1800
(C) Rs. 2000
(D) Rs. 3000
Ans. (D)

63. Given:
Gross profit Rs. 60000
Gross profit ratio: 20%
Debtor’s velocity 2 months
The amount of debtors will be—
(A) Rs. 30000
(B) Rs. 50000
(C) Rs. 120000
(D) Rs.200000
Ans. (B)

64. Premium on issue of shares can be used for—
(A) Issue of Bonus shares
(B) Payment of Dividends
(C) Payment of operating expenses
(D) Redemption of debentures
Ans. (A)

65. If current ratio is 25, quick ratio (1) 5 and net working capital Rs. 15000. This value of inventory will be—
(A) Rs. 10000
(B) Rs. 15000
(C) Rs. 37500
(D) Rs. 52500
Ans. (A)

66. Unclaimed dividend is shown on the liability side of the balance sheet under the heading—
(A) Revenue and surplus
(B) Provisions
(C) Current liabilities
(D) Miscellaneous items
Ans. (C)

67. Accounting standards in India are prescribed by—
(A) Company Law Board
(B) Institute of charted accountants of India
(C) Institute of coat and works accountants of India
(D) Indian standard Board
Ans. (B)

68. Which of the following is not correct—
(A) Purchase + Opening stock—Cost of goods sold = Closing stock
(B) Opening stock + Purchases — Closing stock = Cost of goods sold
(C) Closing stock + Cost of goods sold — Purchases = Opening stock
(D) Cost of goods sold — Closing stock + Purchases = Opening stock
Ans. (D)

69. A company bought assets worth Rs. 360000 and in lieu issued debentures of Rs. 100 each at a discount of 10%. The number of debentures issued will be—
(A) 3000
(B) 3600
(C) 3960
(D) 400
Ans. (D)

70. A person got insured his goods worth Rs. 10000 for Rs. 80QO against fire. Loss by fire to him was Rs. 9000. He can claim—
(A) Rs. 8000
(B) Rs. 9000
(C) Rs. 10000
(D) Rs. 7200
Ans. (D)

71. The data obtained from a newspaper are—
(A) Primary data
(B) Secondary data
(C) Both (A) and (B)
(D) None of these
Ans. (B)

72. Current Ratio of a firm is 3: 1 and working capital is Rs. 60000. What will be the amount of current Assets—
(A) Rs. 30000
(B) Rs90000
(C) Rs. 120000
(D) Rs. 180000
Ans. (B)

73. The income from that house property is taxable under the head “Income from House property”.
(A) The assessee has ownership on that house
(B) The assessee uses that house for his business
(C) The assessee himself lives in that house
(D) The assessee has let out that house on rent for residence
Ans. (A)

74. Following is the deduction in respect of repair under the head of income from house property—
(A) 25% of Annual Value
(B) 30% of Net Annual Value
(C) 1/5 of Annual Value
(D) 1/5 of Net Annual Value
Ans. (B)

75. Single entry system can not be maintained by—
(A) Sole proprietorship
(B) Partnership concerns
(C) Joint stock company
(D) All of these
Ans. (D)

76. Cash account will not be affected by—
(A) Cash paid to creditors
(B) Discount received
(C) Cash sales
(D) Cash received from debtors
Ans. (B)

77. Maximum standard Deduction for employees getting gross salary not more than Rs.
100000 is allowed—
(A) Rs. 20000
(B) Rs. 25000
(C) Rs. 30000
(D) Rs. 33000
Ans. (C)

78. Tax audit is compulsory in case of a person carrying on business whose gross receipt) turnover/sales and exceeds—
(A) Rs. 50 Lakhs
(B) Rs. 40 Lakhs
(C) Rs. l0 Lakhs
(D) Rs. 25 Lakhs
Ans. (B)

79. Mr. Rastogi of Meerut was declared insolvent. One of his liabilities related to one months rent due to his landlord. This liability will be treated as—
(A) Preferential Creditor
(B) Partly Secured Creditor
(C) Fully Secured Creditor
(D) Unsecured Creditor
Ans. (A)

80. When two or more companies liquidate to form a new company. It is called—
(A) Amalgamation
(B) Absorption
(C) Reconstruction
(D) Purchase of Business
Ans. (A)

81. A, B and C are partners in a firm. If D is to be admitted to the firm as a new partner—
(A) Old firm has to be dissolved
(B) Old partnership has to be dissolved
(C) Both the old firm and the old partnership have to be dissolved
(D) No need to dissolve either firm or the partnership
Ans. (D)

82. Remington sold one typewriter to Ramesh Chandra under installment purchase system on 1st January 1996, payment for which was to be made as under—
On 01.01.1996 - Rs. 3000
On 31.12.1996 - Rs. 1700
On 31.12.1997 - Rs. 3600
On 31.12.1998 - Rs. 2300
On 31.12.1999 - Rs. 1100
Interest at 10% p.a. is included in each installment. The total interest charged amount to-
(A) Rs.2100
(B) Rs. 1950
(C) Rs. 1800
(D) Rs. 1700
Ans. (B)

83. The liquidator of a company is entit1edio a remuneration of 2% on assets realised, and 3% on the amount distributed to unsecured creditors. The assets realised Rs. 100000 including cash balance of Rs. 3000. Amount available for distribution to unsecured creditors before paying liquidators remui4eration was Rs. 46350 liquidator’s remuneration will be—
(A) Rs.3100
(C) Rs. 3290
(B) Rs.3140
(D) Rs. 3350
Ans. (C)

84. EXIM Bank was established on—
(A) 1st Dec 1984
(B) 1st June 1985
(C) 1st Jan 1982
(D) 1st July 1980
Ans. (C)

85. For capital gain being long term capital gain, an assessee should retain the assets for a period of—
(A) 40 months
(B) 36 months
(C) More than 36 months
(D) Less than 36 months
Ans. (C)

86. The salary received by a member of parliament is—
(A) Exempt from Tax
(B) Taxable under the head of salary
(C) Taxable under the head of other sources
(D) Taxable under the lead of business
Ans. (C)

87. For the purpose of income tax it is necessary for agriculture income that—
(A) Land should be used for agricultural activities
(B) Land should be used for godown
(C) Land should be used for irrigation
(D) None of above
Ans. (A)

88. Depreciation is allowed on—
(A) Tangible Assets
(B) Current Assets
(C) Fixed Assets
(D) Intangible Assets
Ans. (C)

89. When shares are forfeited, the share capital account is debited by—
(A) Nominal value of forfeited shares
(B) Paid up amount of forfeited shares
(C) Called up amount on forfeited shares
(D) Forfeited amount of shares
Ans. (C)

90. The term ‘POIM’ for the four functions of management. Planning, organisation, integration and measuring was given by.—
(A) F.W. Taylor
(B) Harold Smiddy
(C) Tanon Brown
(D) Peter F. Drucker
Ans. (B)

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