E

E‐Commerce
Multiple Choice Questions

1.Which of the following describes e‐commerce?
a. Doing business electronically b. Doing business c. Sale of goods d. All of the above Answer: A
2.Which of the following is part of the four main types for e‐commerce?
a. B2B b. B2C c. C2B d. All of the above Answer: D
3.Which segment do eBay, Amazon.com belong?
a. B2Bs b. B2Cs c. C2Bs d. C2Cs Answer: B
4.Which type of e‐commerce focuses on consumers dealing with each other?
a. B2B b. B2C c. C2B d. C2C Answer: D
5.Which segment is eBay an example?
a. B2B b. C2B c. C2C d. None of the above Answer: D
6.Which type deals with auction?
7.In which website Global Easy Buy is facilitated?
a. Ebay.com b. Amazon.com c. Yepme.com d. None of these Answer: A
8.The best products to sell in B2C e‐commerce are:
a. Small products b. Digital products c. Specialty products d. Fresh products Answer: B
9.Which products are people most likely to be more uncomfortable buying on the Internet?
a. Books b. Furniture c. Movies d. All of the above Answer: B
10. Which products are people most likely to be comfortable buying on the Internet?
a. Books b. PCs c. CDs d. All of the above Answer: D
11. Digital products are best suited for B2C e‐commerce because they:
a. Are commodity like products b. Can be mass‐customized and personalized
c. Can be delivered at the time of purchase d. All of the above Answer: D
12. The solution for all business needs is
a. EDI b. ERP c. SCM d. None of the above Answer: B
13. All of the following are techniques B2C e‐commerce companies use to attract customers,
except:
a. Registering with search engines b. Viral marketing c. Online ads d. Virtual marketing
Answer: D
14. Which is a function of E‐commerce
a. marketing b. advertising c. warehousing d. all of the above Answer: D
15. Which is not a function of E‐commerce
a. marketing b. advertising c. warehousing d. none of the above Answer: C
16. Which term represents a count of the number of people who visit one site, click on an ad, and
are taken to the site of the advertiser?
a. Affiliate programs b. Click‐through c. Spam d. All of the above Answer: B
17. What is the percentage of customers who visit a Web site and actually buy something called?
a. Affiliate programs b. Click‐through c. Spam d. Conversion rate Answer: D
18. What are materials used in production in a manufacturing company or are placed on the shelf
for sale in a retail environment?
a. Direct materials b. Indirect materials c. EDI d. None of the above Answer: A
19. What are materials that are necessary for running a modern corporation, but do not relate to
the company's primary business activities?
a. Direct materials b. Indirect materials c. EDI d. None of the above Answer: B
20. What are ballpoint pens purchased by a clothing company?
21. What is another name for?
22. What is the process in which a buyer posts its interest in buying a certain quantity of items, and
sellers compete for the business by submitting successively lower bids until there is only one
seller left?
a. B2B marketplace b. Intranet c. Reverse auction d. Internet Answer: C
23. What are plastic cards the size of a credit card that contains an embedded chip on which digital
information can be stored?
a. Customer relationship management systems cards b. E‐government identity cards
c. FEDI cards d. Smart cards Answer: D
24. Most individuals are familiar with which form of e‐commerce?
a. B2B b. B2C c. C2B d. C2C Answer: B
25. Which form of e‐commerce currently accounts for about 97% of all e‐commerce revenues?
a. B2B b. B2C c. C2B d. C2C Answer: A
26. Which of the following are advantages normally associated with B2B e‐commerce?
a. Shorter cycle times b. Reduction in costs c. Reaches wider audiences d. all of the above Answer:
D
27. If the threat of substitute products or services is low it is a(n):
a. Disadvantage to the supplier b. Advantage to the buyer c. Advantage to the supplier d. None of
the above
Answer: C
28. The threat of new entrants is high when it is:
a. Hard for customers to enter the market b. Hard for competitors to enter the market
c. Easy for competitors to enter the market d. Easy for customers to enter the market Answer: C
29. If it is easy for competitors to enter the market, the threat of new entrants is considered:
a. High b. Low c. More d. Less Answer: A
30. An industry is less attractive for suppliers when the rivalry among existing competitors is:
a. High b. Low c. More d. Less Answer: A
31. Unique value auction is mainly applies to?
a. New products b. Second hand products c. Engineering products d. None of the above i.
Answer: B
32. Paisapay is facilitated in
a. eBay.co.in b. amazon.com c. flipkart.com d. none of the above Answer: A
33. Which of the following is a useful security mechanism when considering business strategy and
IT?
a. encryption b. decryption c. firewall d. all the above Answer: D
34. Which of the following is not related to security mechanism
a. encryption b. decryption c. e‐cash d. all the above Answer: C
35. A product or service that customers have come to expect from an industry, which must be
offered by new entrants if they wish to compete and survive, is known as a(n)?
a. Switching costs b. Loyalty programs c. Entry barriers d. Affiliate programs Answer: C
36. Which of the following statements accurately reflect the impact of technology?
a. Technology has caused buyer power to increase
b. Technology has lessened the entry barriers for many industries
c. Technology has increased the threat of substitute products and services d. all of the above
Answer: D
37. A business cannot be all things to all people. Instead, a business must:
a. Identify target customers b. Identify the value of products/services as perceived by customers
c. all of the above d. None of the above Answer: C
38. How the transactions occur in e‐commerce?
a. Using e‐medias b. Using computers only c. Using mobile phones only d. None of the above
Answer: A
39. Which type of products is lesser purchased using ecommerce?
a. automobiles b. books c. softwares d. none Answer: A
40. A business competing in a commodity like environment must focus on which of the following?
a. Price b. Ease / speed of delivery c. Ease of ordering d. all of the above Answer: D
41. Which of the following refers to creating products tailored to individual customers?
a. customization b. aggregation c. Direct materials d. Reverse auction Answer: A
42. Materials used in the normal operation of a business but not related to primary business
operations are called what?
a. Supplies b. Direct materials c. Indirect materials d. Daily stuff Answer: C
43. Amazon.com is well‐known for which e‐commerce marketing technique?
a. Banner ads b. Pop‐up ads c. Affiliate programs d. Viral marketing Answer: C
44. What is the name given to an interactive business providing a centralized market where many
buyers and suppliers can come together for e‐commerce or commerce‐related activities?
a. Direct market place b. B2B c. B2C d. Electronic marketplace Answer: D
45. Which form of e‐marketplace brings together buyers and sellers from multiple industries, often
for MRO materials?
a. horizontal b. Vertical c. Integrated d. Inclined Answer: A
46. Which form of e‐marketplace brings together buyers and sellers from the same industry?
a. horizontal b. Vertical c. Integrated d. Inclined Answer: B
47. Which type of add appears on a web page?
a. pop‐under ad b. Pop‐up ad c. Banner ad d. Discount ad Answer: C
48. What type of ad appears on top of a web page?
a. pop‐under ad b. pop‐up ad c. banner ad d. discount ad Answer: B
49. What type of ad appears under a web page?
a. pop‐under ad b. pop‐up ad c. banner ad d. discount ad Answer: A
50. Which, if any, of the following types of ads are people most willing to tolerate?
a. pop‐under ad b. pop‐up ad c. banner ad d. none of the above Answer: D
51. Which of the following is an Internet‐based company that makes it easy for one person to pay
another over the Internet?
a. electronic check b. electronic bill presentment and payment c. conversion rates
d. financial cyber mediary Answer: D
52. Which of the following is a method of transferring money from one person's account to
another?
a. electronic check b. credit card c. e‐transfer d. none of the above Answer: A
53. An electronic check is one form of what?
a. e‐commerce b. online banking c. e‐cash d. check
54. If you need to transfer money to another person via the internet, which of the following
methods could you use?
a. financial cybermediary b. electronic check c. electronic bill presentment and payment
d. all of the above Answer: D
55. Which of the following permits the transmission of a bill, along with payment of that bill, to be
conducted over the Internet?
a. financial cybermediary b. electronic check c. electronic bill presentment and payment
d. all of the above Answer: C
56. A combination of software and information designed to provide security and information for
payment is called a what?
a. digital wallet b. pop up ad c. shopping cart d. encryption Answer: A
57. What is the name for direct computer‐to‐computer transfer of transaction information
contained in standard business documents?
a. internet commerce b. e‐commerce c. transaction information transfer d. electronic data
interchange
Answer: D
58. Which of the following is used in B2B to pay for purchases?
a. e‐commerce b. financial electronic data interchange c. electronic data
exchange d. electronic checks
Answer: B
59. Public key encryption uses multiple keys. One key is used to encrypt data, while another is used
to decrypt data. The key used to encrypt data is called the _____ key, while the key used to
decrypt data is called the _____ key.
a. encryption, decryption b. private, public c. encryption, public d. public, private Answer: D
60. Secure Sockets Layers does which of the following?
a. creates a secure, private connection to a web server b. encrypts information
c. sends information over the internet d. all of the above Answer: D
61. When a transaction is processed online, how can the merchant verify the customer's identity?
a. use secure sockets layers b. use secure electronic transactions
c. use electronic data interchange d. use financial electronic data interchange Answer: B
62. The practice of forging a return address on an e‐mail so that the recipient is fooled into
revealing private information is termed?
a. hacking b. cracking c. dumpster diving d. spoofing Answer: D
63. What is a model of a proposed product, service, or system?
a. Prototyping b. Prototype c. Proof‐of‐concept prototype d. Selling prototype Answer: B
64. What is an internal organizational Internet that is guarded against outside access by a special
security feature called a firewall (which can be software, hardware, or a combination of the
two)?
a. Client/server network b. Intranet c. Extranet d. Thin client Answer: B
65. What is an intranet that is restricted to an organization and certain outsiders, such as customers
and suppliers?
a. Client/server network b. Intranet c. Extranet d. Thin client Answer: C
66. What is a detailed process for recovering information or an IT system in the event of a
catastrophic disaster such as a fire or flood?
a. Disaster recovery plan b. Hot site c. Cold site d. Disaster recovery cost curve Answer: A
67. What is a separate facility that does not have any computer equipment but is a place where the
knowledge workers can move after the disaster?
a. Disaster recovery plan b. Hot site c. Cold site d. Disaster recovery cost curve Answer:C
68. What is a separate and fully equipped facility where the company can move immediately after
the disaster and resume business?
a. Disaster recovery plan b. Hot site c. Cold site d. Disaster recovery cost curve Answer: B
69. What charts (1) the cost to your organization of the unavailability of information and technology
and (2) the cost to your organization of recovering from a disaster over time?
a. Disaster recovery plan b. Hot site c. Cold site d. Disaster recovery cost curve Answer: D
70. Which factor determines when your IT system will be available for knowledge workers to
access?
a. Availability b. Accessibility c. Reliability d. None of the above Answer: A
71. Which factor determines who has the right to access different types of IT systems and
information?
a. Availability b. Accessibility c. Reliability d. Scalability Answer: B
72. Which factor ensures your IT systems are functioning correctly and providing accurate
information?
a. Availability b. Accessibility c. Reliability d. Scalability Answer: C
73. Which factor represents how well your system can adapt to increased demands?
a. Availability b. Accessibility c. Reliability d. Scalability Answer: D
74. Which factor represents a system's ability to change quickly?
a. Flexibility b. Performance c. Capacity planning d. Benchmark Answer: A
75. What is a set of conditions used to measure how well a product or system functions?
a. Flexibility b. Performance c. Capacity planning d. Benchmark Answer: D
76. What determines the future IT infrastructure requirements for new equipment and additional
network capacity?
a. Flexibility b. Performance c. Capacity planning d. Benchmark Answer: C
77. What automates business processes?
a. Workflow b. ASP c. Workflow system d. EIP Answer: C
78. What defines all of the steps or business rules, from beginning to end, required for a process to
run correctly?
a. Workflow b. EIP c. Workflow system d. SLA Answer: A
79. What sends work assignments through an e‐mail system?
a. Database‐based enterprise information portal b. Messaging‐based enterprise information portal
c. Database‐based workflow system d. Messaging‐based workflow system Answer: D
80. Which will not harm computer resources
a. firewall b. Virus c. Trojan horse d. None of the above Answer: A
81. Which is not a function of ERP?
a. Warehousing b. sales c. scheduling d. None of the above
Answer: D
82. Which is a function of ERP?
a. Warehousing b. sales c. scheduling d. all of the above Answer: D
83. Which of the following is the primary characteristic of an intranet?
a. People outside the organization can access it
b. People inside the organization can't access it
c. People outside the organization can't access it
d. None of the above
Answer: C
84. Which concept suggests that different applications and computer systems should be able to
communicate with one another?
a. Integration b. Web services c. Scalability d. Interoperability Answer: D
85. Which service encompasses all technologies used to transmit and process information on an
across a network?
a. Interoperability b. Scalability c. Benchmarking d. Web services Answer: D
86. Which process can prevent data from lose due to computer problems or human errors?
a. backup b. recovery c. benchmarking d. data cleansing Answer: A
87. Which process is used to reinstall data from a copy when the original data has been lost?
a. backup b. recovery c. benchmarking d. data cleansing Answer: B
88. What describes a process of continuously measuring results and comparing those results to
optimal performance so that actual performance may be improved?
a. Performance b. Capacity planning c. Benchmarking d. Data cleansing Answer: C
89. Who protects system from external threats?
a. firewall b. EDI c. ERP d. Script kiddies Answer: A
90. Who breaks into other people's computer systems and steals and destroys information?
a. Hackers b. softwares c. Hacktivists d. Script kiddies Answer: a
91. What is software that comes hidden in free downloadable software and tracks your online
movements, mines the information stored on your computer, or uses your computer's CPU and
storage for some task you know nothing about?
a. Web log b. Clickstream c. Anonymous Web browsing service d. None of the above
Answer: D
92. ERP stands for
a. Enterprise resolution planning b. Enterprise reverse planning c. Enterprise resource planning
d. None of the above Answer: C
93. Which is not a component of ERP?
a. Legacy systems b. Bolt on applications c. Operational database d. Cybersoft Answer: D
94. Which is not a function of ERP?
a. Human resource management b. financial c. warehousing d. None of the above Answer: D
95. What is a type of virus that spreads itself, not just from file to file, but from computer to
computer via e‐mail and other Internet traffic?
a. Computer virus b. Worm c. Denial‐of‐service attack d. None of the above Answer: B
96. What floods a Web site with so many requests for service that it slows down or crashes?
a. Computer virus b. Worm c. Denial‐of‐service attack d. None of the above Answer: C
97. What harnesses far‐flung computers together by way of the Internet or a virtual private network
to share CPU power, databases, and database storage?
a. Computer virus b. Worm c. Denial‐of‐service attack d. None of the above Answer: D
98. What consists of the identification of risks or threats, the implementation of security measures,
and the monitoring of those measures for effectiveness?
a. Risk management b. Risk assessment c. Security d. None of the above Answer: A
99. What is the process of evaluating IT assets, their importance to the organization, and their
susceptibility to threats, to measure the risk exposure of these assets?
a. Risk management b. Risk assessment c. Security d. None of the above Answer: B
100. What is the process of making a copy of the information stored on a computer?
a. Backup b. Anti‐virus c. Firewall d. Biometrics Answer: A
101. What software detects and removes or quarantines computer viruses?
a. Backup b. Anti‐virus c. Firewall d. Biometrics Answer: B
102. What is hardware and/or software that protects computers from intruders?
a. Backup b. Anti‐virus c. Firewall d. Biometrics Answer: C
103. What is the use of physical characteristics — such as your fingerprint, the blood vessels
in the retina of your eye, the sound of your voice, or perhaps even your breath — to provide
identification?
a. Backup b. Anti‐virus c. Firewall d. Biometrics Answer: D
104. All of the following are considered biometrics, except:
a. Fingerprint b. Retina c. Password d. Voice Answer: C
105. What scrambles the contents of a file so you can't read it without having the right
decryption key?
a. Encryption b. Intrusion‐detection software c. Security‐auditing software d. All of the above
Answer: A
106. What is an encryption system that uses two keys: a public key that everyone can have
and a private key for only the recipient?
a. Encryption b. Public key encryption c. Intrusion‐detection software d. Security‐auditing software
Answer: B
107. What looks for people on the network who shouldn't be there or who are acting
suspiciously?
a. Encryption b. Public key encryption c. Intrusion‐detection software d. Security‐auditing software
Answer: C
108. What checks out your computer or network for potential weaknesses?
a. Encryption b. Public key encryption c. Security‐auditing software d. None of the above : C
109. Which of the following to viruses harm?
a. Your keyboard b. Your monitor c. Your processor d. Viruses do not harm any of the above
Answer: D
110. Which of the following can a virus do?
a. Hurt your hardware b. Hurt any files they weren't designed to attack c. Infect files on
write‐protected disks
d. None of the above Answer: D
111. In simple terms, what does risk assessment ask?
a. What can go wrong? b. How likely is it to go wrong? c. What are the possible consequences if
it does go wrong? d. All of the above Answer: D
112. Which of the following is a characteristic of a firewall?
a. Examines each message as it seeks entrance to the network
b. Blocks messages without the correct markings from entering the network
c. Detects computers communicating with the Internet without approval
d. All of the above
Answer: D
113. Which of the following are ways to prove access rights?
a. What you know, like a password b. What you have, like an ATM card
c. What you look like d. All of the above Answer: D
114. Which item can a password be used to protect?
a. Network b. File c. Folder d. All of the above Answer: D
115. Which is the most important component of IT?
a. Information b. People c. Information technology d. Computers Answer: B
116. Which of the following applies to the implementation of an idea?
a. Copyright b. Intellectual property c. Patent d. Denial‐of‐service attack Answer: C
117. When you purchase copyrighted software, what actually are you paying for?
a. The cost of the CDs, manuals, and development of the software
b. The cost of the CDs, manuals, and a share of the cost of the software development
c. A share of the cost of software development d. All of the above Answer: D
118. Which of the following is not a dimension of privacy?
a. Need for personal space b. Need to feel in control of our possessions
c. Need to feel in control of our personal information d. All of the above are dimensions of privacy
Answer: D
119. Which of the following captures screen images?
a. Key logger b. Packet sniffer c. Log analysis tools d. Screen capture software Answer: D
120. Which of the following examines information passing through switches, hubs, or
routers?
a. Key logger b. Packet sniffer c. Log analysis tools d. Screen captures Answer: B
121. Which of the following records logons and deletions?
a. Key logger b. Packet sniffer c. Log analysis tools d. Screen captures Answer: C
122. E‐mail messages may be stored on which of the following computers?
a. Sender's computer b. Sender's server c. Recipient's server d. All of the above Answer: D
123. What might identity thieves do with your identity?
a. Apply for and use credit cards b. Apply for a loan c. Change their identity d. All of the above
Answer: D
124. Which of the following is not a common approach to phishing?
a. Send an official‐looking e‐mail asking for confidential information
b. Ask people to fill out and return a fake letter using postal mail
c. Ask people to click a link in an e‐mail to open a submission form on a web page
d. All of the above are uncommon approaches to phishing Answer: B
125. A technique used to gain personal information for the purpose of identity theft, often by
e‐mail, is called?
a. Phishing b. Carding c. Brand spoofing d. All of the above Answer: D
126. Companies can gather information about employees and potential employees from
which of the following places?
a. Job applications b. Credit reports c. Companies that track Web surfers d. All of the above
Answer: D
127. Cyber slacking consists of what activities?
a. Visiting “inappropriate” web sites b. Visiting news sites
c. Chatting online with others about non‐work topics d. All of the above Answer: D
128. Cookies are used to do which of the following?
a. Store your ID and password for subsequent logons to the site
b. Store contents of electronic shopping carts
c. To track web activity d. All of the above and more Answer: D
129. Unsolicited e‐mail is called what?
a. Junk mail b. Spam c. Extra mail d. None of the above Answer: B
130. What is the name of the new anti‐Spam bill?
a. No‐Spam b. CAN‐Spam c. Spam‐Away d. Stop Spam Answer: B
131. What is the legal protection afforded an expression of an idea, such as a song, video
game, and some types of proprietary documents?
a. Ethics b. Intellectual property c. Copyright d. Fair Use Doctrine Answer: C
132. What is the unauthorized use, duplication, distribution or sale of copyrighted software?
a. Fair Use Doctrine b. Pirated software c. Counterfeit software d. Privacy Answer: B
133. What is a program, when installed on a computer, records every keystroke and mouse
click?
a. Key logger software b. Hardware key logger c. Cookie d. Adware Answer: A
134. What is software you don't want hidden inside software you do want?
a. Adware b. Trojan‐horse software c. Spyware d. All of the above Answer: D
135. What is an electronic representation of cash?
a. Digital cash b. Electronic cash c. E‐cash d. All of the above Answer: D
136. What is a fully‐equipped computer that you wear as a piece of clothing or attached to a
piece of clothing similar to the way you would carry your cell phone on your belt?
a. Wearable computer b. GPS c. Implant chip d. None of the above Answer: A
137. What is a technology‐enabled microchip implanted into the human body?
a. Wearable computer b. GPS c. Implant chip d. None of the above Answer: C
138. Which of the following is not a reason why digital cash has turned out to be extremely
difficult?
a. If your system crashes you lose your money
b. There is only one standard
c. Digital cash makes money laundering easy
d. Digital cash travels across the vast Internet and is susceptible to begin stolen Answer: B
139. Smart card is better protected than other cards using
a. Encryption b. Firewall c. Hub d. All the above Answer: A
140. Trust card is introduced by
a. BSNL and itzcash b. BSNL and oxicash c. BSNL only d. None Answer: A
141. PaisaPay is offered only by
a. Homeshop18.com b. eBay.in c. amazon.com d. none Answer: B
142. The E‐payment mechanism widely used in B2B is
a. Credit card b. Debit card c. Master card d. E‐cheque Answer: D
143. Which type of technology will increase portability and mobility?
a. Implant chips b. Micro‐payments c. Internet phone calls d. All of the above Answer: D
144. Which of the following an accurate statement about internet phone calls?
a. They are possible but not yet free
b. They are not possible
c. They are currently standard practice
d. None of the above is an accurate statement about internet phone calls
Answer: A
145. What are the most commonly used input devices today?
a. Keyboard b. Mouse c. All of the above d. None of the above Answer: C
146. Which of the following can be used to help identify people in a crowd?
a. Biochip b. Implant chip c. Facial recognition software d. Vision chip Answer: C
147. Which one is also known as plastic money?
a. Credit card b. Debit card c. Paper cash d. All of the above Answer: A
148. E‐cheques are …………………
a.Prepaid b.Postpaid c. Both prepaid and postpaid Answer: A
149. Digital signature is a
a. Digital id,send as an attachment to a web page/e‐mail/message
b. Is used for verifying the attachments send using web c. Both a and b d. None of these
Answer: C
150. Which one is the component of cybercash payment system
a. CC user software b. CC merachant software c. CC Server Software d. All of the above
Answer: D
151. The presence of ‐‐‐‐‐‐‐‐‐‐‐ make the smart card smart.
a. Memory b. Microchip c. E‐cash d. None of the above Answer: B
152. The smart card which use antenna for reading and writing data
a) Contact smart card b) Contactless smart card c) Proximity smart card d) Both B and C
Answer: D
153. ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ card is read only.
Answer: C
154. Which of the smart card uses a sim like structure for reading and writing data
Answer: A
155. Which is not a feature of ecommerce
a. SCM b. EDI c. WWW d. BPR Answer: D
156. What is I stands in CIA of smart card?
a. International b. Integrity c. Identity d. None of the above Answer: B
157. What is A stands in CIA of smart card?
a. auditing b. authenticity c. authorized d. None of the above Answer: B
158. What is C stands in CIA of smart card?
a. confidentiality b. conference c. congress d. None of the above Answer :A
159. Which one is the third party payment providers who offer digital wallets for E‐
merchants
a. Oxicash b. PayMate c. PayPass d. All the above Answer: D
160. Which is used to identify mobile money
a. MCID b. MMID c. RSID d. NONE OF THE ABOVE Answer: B
161. ‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is an act that poses danger to computer assets.
a. Threat b. Danger c. Error d. None of the above Answer: A
162. Which one is not a encryption technique
a. RSA b. DES c. AES d. NONE OF THE ABOVE Answer: D
163. Which one is not used as a security mechanism?
a. Encryption b. Cryptography c. Wallets d. Digital signature Answer :C
164. Which e‐government arena is being used when governmental agencies send out and
accept bids for work?
a) G2G b) G2B c) G2C d) G2G Answer: B
165. Secret key is used for
a. Public key cryptography b. Private key cryptography c. Asymmetric key cryptography d. None
of these Answer: B
166. Which one is a communication channel threat?
a. Sniffer programs b. Cyber vandalism c. Integrity threats d. All of the above Answer: D
167. Which one is a communication channel security protocol?
a. SSL b. S‐HTTP c. SET d. ALL OF THE ABOVE Answer: D
168. The protocol which allows the file transfer between computers is
a. TCP/IP b. FTP c. HTTP d. SOA Answer: B
169. E‐Banking is also known as
a. ATMs b. Net banking c. Traditional banking d. None of these Answer: B
170. ‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is backbone of all E‐payments in E‐commerce
a. EFT b. EPS c. PayPal d. None of these Answer: B
171. Which one is a client level threat?
a. Malicious code b. Viruses c. Active contents d. All the above Answer: D
172. Which one is not an encryption technique?
a. RSA b. DES c. AES d. FTP Answer: D
173. Which one is an encryption technique?
a. RSA b. DES c. AES d. All of the above
Answer: D
174. Which one is not a server level threat?
a. Malicious code b. CGI threats c. Database threats d. Buffer overflows Answer: A
175. Which one is not a physical threat?
a. Hacking b. Storm c. Phishing d. None of the above Answer: A
176. Which one is a physical threat?
a. Phishing b. Storm c. Earthquake d. All the above Answer: D
177. Which one is a logical threat?
a. Hacking b. Storm c. Phishing d. None of the above Answer: A
178. The basic elements of website is
a. Home page b. Web pages c. Links and banners d. All the above Answer: D
179. Which one is a threat for E‐commerce
a. Trojan horse b. firewall c. encryption d. None Answer: A
180. Secure communication means
a. Protect transmission of credit card number b. Guarantee privacy of customer
c. Unauthorized access of payment details
d. All the above Answer: D
181. Which one is not an offline payment mode?
a. Cash on delivery b. Cash before delivery c. Demand drafts d. e‐cheque Answer: D
182. Which one is an offline payment mode?
a. Cash on delivery b. Cash before delivery c. Credit card d. Both a and b Answer: D
183. Which one is not an online payment mode?
a. Cash on delivery b. Debit card c. Credit card d. e‐cheque Answer: A
184. Which one is an online payment mode?
a. Cash on delivery b. Cash before delivery c. Demand drafts d. e‐cheque
Answer: D
185. which one is not an E‐payment method used in India
a. Debit card b. Credit card c. e‐cheque d. none Answer: D
186. OTP stands for
a. On Time Password b. On Time processing c. One time processor d. None Answer: A
187. Which one is not a threat for E‐commerce
a. Trojan horse b. Viruses c. Worm d. None Answer: D
188. Private Key cryptography is also known as ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐cryptography.
a. Public key b. Symmetric c. Asymmetric d. None Answer: B
189. Public key cryptography is also known as ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐cryptography.
a. Private key b. Symmetric c. Asymmetric d. None Answer: C
190. What is the legal protection afforded an expression of an idea, such as a song, video
game, and some types of proprietary documents?
a. Ethics b. Intellectual property c. Copyright d. Fair Use Doctrine Answer: C
191. Cyber slacking consists of what activities?
a. Visiting “inappropriate” web sites
b. Visiting news sites
c. Chatting online with others about non‐work topics
d. All of the above Answer: D
192. What is an arrangement made between e‐commerce sites that direct users from one
site to the other?
a. Spam b. Viral marketing c. Affiliate programs d. None of the above Answer: C
193. Which type deals with auction?
194. Which one is not a layer of E‐commerce infrastructure
a. Physical layer b. Product layer c. Service layer d. None Answer: D
195. Which will harm computer resources
a. Worm b. Virus c. Trojan horse d. All the above Answer: D
196. The study of encryption is called‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
a. Decryption b. Cryptography c. Firewall d. All the above Answer: B
197. During E‐commerce transaction we should ensure‐‐‐‐‐‐‐‐‐‐‐‐‐
a. Integrity b. Security c. Confidentiality d. All the above Answer: D
198. The virus that are commonly found in word documents are called‐‐‐‐‐‐‐‐‐‐‐‐‐‐
a. Macro b. Trojan horse c. Script virus d. None of the above Answer: A
199. The virus that are attached with vb and java files are called
a. Macro b. Trojan horse c. Script virus d. None of the above Answer: C
200. The viruses spreads through‐‐‐‐‐‐‐‐‐‐‐‐‐
a. Mails b. Pen drives and cds c. Websites d. All the above Answer: D
1. Which one of the following is an ingredient of the entity convention of accounting?
1. The owner of a unit and the unit itself is one and the same
2. The owner and the unit are treated separately
3. No separate accounts for the unit is required
4. The unit is a private affair of the owner, hence no accounting is required
1. If earnings per share of a company is Rs. 5 and the price earning ratio of other similar companies is
4, then the market value of the share of the company would be–
(A) Re. 0•80 (B) Rs. 1•25 (C) Rs. 9 (D) Rs. 20 See Answer:
2. If the cost of goods sold is Rs. 1,00,000, the value of opening stock is Rs. 20,000 and the value of
closing stock is Rs. 80,000, then the stock turnover ratio would be–
(A) 5 Times (B) 4 Times (C) 2 Times (D) 1 Time See Answer:
3. EPS is calculated as–
(A) EBIT / Equity shares (B) EBIT – Preference Dividend / Equity shares
(C) EAT / Equity shares (D) EAT – Preference Dividend / Equity shares See Answer:
4. If profit made during the year is Rs. 10,000; increase and decrease in the current assets is Rs. 5,000
and Rs. 4,000 respectively, then the cash from operation equals–
(A) Rs. 9,000 (B) Rs. 10,000 (C) Rs. 11,000 (D) Rs. 19,000 See Answer:
5. Which of the following is NOT correct about the management auditor ?
(A) He appraises and reviews the past performance and future plans of the company
(B) He evaluates the performance of management and finds out whether they are efficient or not
(C) He works simultaneously with the statutory auditor vertifying the financial state of affairs of the
company
(D) He examines both financial and non-financial records of the organisation See Answer:
6. Commercial paper is a–
(A) long-term corporate security meant for small investors
(B) medium-term corporate security meant for institutional investors
(C) treasury paper meant for corporate investors
(D) short-term corporate security meant for large-scale investors See Answer:
7. A cartel is a combination of firms–
(A) which are functioning in a particular industry
(B) whose combined assets are worth more than 90% of total assets of the industry
(C) who control major chunk of the market (D) whose combined profits are enormous
See Answer:
8. The takeover of a company in which most of the purchase price is paid with borrowed money is
referred to as–
(A) hostile takeover (B) illegal takeover (C) leveraged buy-out (D) management buy-out
See Answer:
9. One of the major difficulties improving the industrial efficiency in enterprises is–
(A) low investment (B) low productivity (C) ineffective marketing (D) poor inventory control
See Answer:
10. Exam Bank of India provides financial assistance to exporters and importers in India:
(A) in foreign currency only (B) both in Indian currency and foreign currencies.
(C) as zero-interest loans (D) as subsidies See Answer:
11. Impact of O & M is that–
(A) promotion possibility becomes restricted (B) it leads to less scope for high salary and wages
(C) entire organization is streamlined (D) work measurement is costly See Answer:
12. The term ‘Organisational climate’ best represents–
(A) human environment prevailing in an organisation (B) union-management relations within an
organisation (C) problems introduced by faulty organisational structure (D) socio-cultural
environment in an organisation See Answer:
13. The Memorandum of Association shall be signed by each–
(A) director (B) shareholder (C) subscriber (D) promoter and director See Answer:
14. Changing the name of a company requires–
(A) special resolution and approval of Company Law Board
(B) special resolution and approval of Securities and Exchange Board of India
(C) special resolution and approval of Central Government
(D) ordinary resolution and approval of Company Law Board See Answer:
15. Registration of Articles of Association is optional in the case of–
(A) unlimited company (B) private company limited by shares (C) company limited by guarantee (D)
public company limited by shares See Answer:
16. Under the accrual concept which one of the following will not be shown as an asset/liability in the
balance sheet of an entity ?
(A) Interest due but not paid (B) Interest due but not received (C) Interest due and paid (D) Interest
paid but not due. See Answer:
17. A company purchased 8% bonds at a cost of Rs. 12,00,000 (Face value Rs. 10,00,000) on January
1, 2013. Half yearly interest is payable on this investment on June 30 and December 31st each year.
The Company closes its accounts on 31.3.2013. The amount of accrued interest shown in profit and
loss account for the year ended is–
18. Goods worth Rs. 24,000 were returned by X. The accountant however credited the sales returns
account by Rs. 42,000. In order to rectify this error, what should be done ?
(A) Debit the sale return by Rs.42,000 (B) Credit the sales return account by Rs. 24,000
(C) Debit the sales return account by Rs. 66,000 (D) Debit the sales return account by Rs. 18,000
See Answer:
19. A machine with a written down value of Rs. 10,000 has been sold for Rs. 13,000. The amount
realized is a–
(A) Capital receipt and profit involved should be transferred to Capital Reserve
(B) Revenue receipt
(C) Capital receipt and profit involved should be transferred to General Reserve
(D) Capital receipt and profit involved should be transferred to Profit and Loss A/c See Answer:
20. Rs. 10,000 spent on the replacement of worn out parts of an electronic machinery is treated as–
(A) Capital expenditure (B) Revenue expenditure (C) Deferred revenue expenditure (D) Capital loss
See Answer:
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1. Provisions are amounts set aside out of profits and other surpluses for–
(A) meeting a liability, the amount of which can be determined with exact figure
(B) any known liability of which the amount cannot be determined with substantial accuracy
(C) meeting an eventuality arising out of revaluation of assets in ordinary course of business
(D) meeting a liability arising out of arbitration See Answer:
2. A trader does not keep a complete set of books and gives the following information–
He started business with Rs. 10,000 on 1st June, 2012. He drew at the rate of Rs. 500 per month for
the last six months. He also introduced further capital of Rs. 2,000 in the business during the year.
His total assets on 31st December, 2012 were Rs. 23,700 and his creditors were Rs. 3,000 on the same
date. Outstanding expenses on 31st December 2012 were Rs. 500. His net profit during the year would
be–
3. X, who holds 100 shares of Rs. 10 each, fails to pay a final call of Rs. 2. The directors forfeited all
the shares and subsequently reissued 50 shares of Rs. 6 each as fully paid. The amount to be
transferred to ‘Capital Reserve A/c’ would be–
(A) Rs. 200 (B) Rs. 300 (C) Rs. 400 (D) Rs. 800 See Answer:
4. A Ltd. Company issues 3,000, 15% debentures of Rs. 100 each at a discount of 7•5% repayable at a
premium of 5% at the end of 5 years. The loss on issue of debentures will be–
5. X Ltd. has current ratio of 2– 1 and quick ratio of 1•5– 1. If its current liabilities are Rs. 80,000,
then the value of stock would be–
(A) Rs. 1,60,000 (B) Rs. 1,20,000 (C) Rs. 40,000 (D) Rs. 80,000 See Answer:
6. Test checking of entries in the audit work refers to–
(A) the internal checks (B) the inernal controls (C) checking some sample items from a large number
of similar items (D) checking the cash flow of business See Answer:
7. Test checking reduces–
(A) the work of an auditor (B) the liability of an auditor
(C) both work and liability of an auditor (D) the remuneration of an auditor See Answer:
8. While establishing the statistical sampling plan, the degree of precision required is determined by–
(A) keenness of the management
(B) suitability of accounting systems and procedures
(C) allowable margin of error the auditors are willing to accept
(D) random number table used for the purpose See Answer:
9. The distinctive characteristic of ‘perpetual succession’ of a joint stock company refers to–
(A) uniterrupted business in spite of continuous losses
(B) immunity from government direction for the closure of the company
(C) immunity from resolution passed in the annual general body meeting for closure of the company
(D) uninterrupted existence not affected by the death or insolvency of members of the company
See Answer:
10. Who is a ‘bull’ ?
(A) A stock broker who deals or specializes in a few shares
(B) An investor who sells securities in anticipation of being able to rebuy them later at a lower price
(C) An investor who buys securities in anticipation of being able to sell them later at a higher price
(D) An investor who expects the price of a security or of the market as a whole to fall See Answer:
11. Among the following ‘change management’ methods, which one is the most appropriate when the
employees are unwilling to accept change ?
(A) Participative method (B) Directive method (C) Leading by example (D) Negative reinforcement
See Answer:
12. In a group process, there are some forces favouring and some other forces opposing changes. As a
result, an equilibrium is maintained. This is described by Kurt Lwein as–
(A) field of force (B) field of disputes (C) field of conflicts (D) cognitive dissonance See Answer:
13. People resist change in organization because of–
(A) fear of unemployment (B) increase in responsibility (C) need for new social adjustments (D) All
the above See Answer:
14. Centralising the office work is desirable mostly because it–
(A) fixes responsibility (B) avoids duplication (C) permits better supervision (D) permits better
delegation
See Answer:
15. Which one of the following indicates the correct chronological order of the ‘system’ designed for
purchasing ‘office supplies’ ?
(A) Select sources of supply, initiate requisition, order supplies, receive supplies and pay vendor
(B) Initiate requisition, order supplies, select sources of supply, receive supplies and pay vendor
(C) Select sources of supply, initiate requisition order supplies, pay vendor and receive supplies
(D) Initiate requisition, select sources of supply, order supplies, receive supplies and pay vendor
See Answer:
16. The first step of the control process actually gets initiated in the managerial function of–
(A) Staffing (B) Planning (C) Communication (D) Co-ordination
See Answer:
17. Which one of the following statements is correct ?
(A) Business policy is another name for long-range planning
(B) Strategic planning is the function of middle management
(C) Operational planning is the function of top management
(D) Strategic planning is largely influenced by external environment.
See Answer:
18. What is indent in foreign trade ?
(A) Shipping documents in duplicate (B) A certificate indicating that the foods have been loaded on
board the ship
(C) A firm and binding order from the importer (D) A letter of intent from the overseas supplier.
See Answer:
19. Making the provision for bad and doubtful debts in anticipation of actual bad debts is on the basis
of–
(A) Convention of disclosure (B) Convention of consistency
(C) Convention of conservation (D) Convention of disclosure and consistency
See Answer:
20. Who among the following is the ‘Officer who is in default’ within the definition given under
Section 5 of the Companies Act, 1956.
(A) All employees (B) Secretary (C) Contractor (D) Supplier of raw material
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1. Preparation of Trial Balance helps, mainly, in–
(A) summarising business transactions (B) verifying that ‘generally accepted accounting principles’
have been observed
(C) finalising the ‘sources and uses of funds’ statement (D) locating errors, if any, in books of
accounts. See Answer:
2. If opening stock = Rs. 2,45,000; purchases = Rs. 15,00,000; sales = Rs. 17,40,000 and rate of gross
profit = 20% on cost of goods sold, then the closing stock would be at–
(A) Rs. 3,53,000 (B) Rs. 2,95,000 (C) Rs. 2,45,000 (D) Rs. 1,95,000 See Answer:
3. The basis adopted for piecemeal distribution of cash among the partners should be such that
amounts finally left unpaid are in the ration in which–
(A) capital stands on the date of dissolution (B) profits and losses are shared
(C) capital balances stood at the beginning of partnership (D) private assets appear on the date of
dissolution See Answer:
4. The capital of a firm is Rs. 80,000. The reasonable return in the industry is 7•5 per cent. If the profit
earned by the firm during past five years was Rs. 8,000; Rs. 9,000; Rs. 7,000; Rs. 8,500 and Rs.
10,000; then the super profit of the firm will be–
5. ‘A’ and ‘B’ are partners in a firm sharing profits and losses in the ratio of 2– 3. ‘C’, a new partner is
admitted for 1/4th share. ‘A’ and ‘B’, old partners share C’s profit into their profit sharing ratio. The
new profit sharing ratio of ‘A’, ‘B’ and ‘C’ would be–
(A) 1– 1– 1 (B) 2– 3– 4 (C) 1– 2– 2 (D) 6– 9– 5 See Answer:
6. The scope of audit in a partnership firm is governed by–
(A) partnership act (B) partnership deed (C) agreement between partnership firm and auditor (D)
number of partners of the firm See Answer:
7. If an auditor does something wrongfully in the performance of his duties resulting in financial loss
to the company, he will be held guilty of–
(A) civil negligence (B) misfeasance (C) criminal negligence (D) financial irregularity See Answer:
8. The First Standard Auditing Practice (SAP-1) is related to–
(A) objectives and scope of the audit of financial statements (B) basic principles governing an audit
(C) documentation (D) detecting fraud and error
See Answer:
9. Which of the following relating to Audit Programme is not correct ?
(A) The auditor cannot defend himself on the basis of audit programme if there is a charge of
negligence against him (B) It is useful basis for planning the programme for the subsequent year
(C) It helps in the final review before the report is signed
(D) It simplifies the allocation of work amongst the audit staff See Answer:
10. The scope of ‘management audit’ is determined by the–
(A) Shareholders (B) Board of Directors (C) Comptroller and Auditor-General (C & AG)
(D) Comptroller and Auditor-General in consultation with the Central Government
See Answer:
11. Which one of the following traits describes properly organic or behavioural structure of an
organisation ?
(A) Wider spans of control (B) More centralisation (C) Higher degree of specialization (D) Taller
hierarchy See Answer:
12. Which among the following is the most popular approach for accomplishing the results ?
(A) Management by exception (B) Reward system (C) Management by objectives (D) Mentor system
See Answer:
13. A systematic and orderly process of determining the worth of a job in relation to other jobs is
known as–
(A) job analysis (B) job evaluation
(C) job specification (D) job description
See Answer:
14. Which one of the following factors does not influence wage and salary structure ?
(A) Demand and supply (B) Cost of living (C) Job rotation (D) Job requirements See Answer:
15. Which among the following is a direct advantage of incentive compensation ?
(A) Mutual co-operation among the workers (B) Decrease in absenteeism
(C) Increase in productivity (D) Better industrial relations See Answer:
16. Consistency with reference to application of accounting principles refers to the fact that–
(A) companies in the same industry use identical accounting procedures and methods
(B) income and assets have not been overstated
(C) accounting methods and procedures used have been consistently applied from year to year.
(D) all the methods and procedures have been utilised. See Answer:
17. Call option is–
(A) A contract to buy a certain number of shares at a stated price within a specified period of time
(B) A contract to sell a certain number of shares at a stated price within a specified period of time
(C) the option of the issuing company to demand the shareholders to pay for the partly paid shares
(D) the option available to the convertible debenture holders to demand equity shares in conversion of
debentures
See Answer:
18. An audit in which the auditor examines the financial statements of an enterprise to express an
opinion as to whether or not they reflect a true and fair view of its state of affairs and working results
is known as–
(A) Management audit (B) Cost audit (C) Financial audit (D) Periodical audit See Answer:
19. Is management by exception, one of the important principles of control ?
(A) Yes; because only the unusual deviations from standards should be brought to the notice of the
management
(B) No; because less significant deviations and the actual performance according to the standards are
not brought to the notice of the management
(C) Yes; because exception principle saves time of the subordinate staff
(D) No; because the manager can attend to operative decisions, and the strategic problems can be left
to the technocrats See Answer:
20. Job evaluation is used for–
(A) study of progress of production (B) study of job composition (C) determining wage rate
differentials (D) rating the merit of an employee See Answer:
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1. Consider the following– The investment portfolio of a business as on 31-12-2012 stood as follows–
(1) 8% Debentures of X Co. Ltd. (Rs. 6,000). Interest payable on 31st March and 30th September.
(2) 7% Debentures of Y Co. Ltd. (Rs. 4,000). Interest payable on 30th June and 31st December.
(3) 10% Debentures of Z Co. Ltd. (Rs. 9,000). Interest payable on 1st June and 1st December. Amount
of interest accrued on the closing date will be–
(A) Rs. 335 (B) Rs. 1,025 (C) Rs. 195 (D) Rs. 830 See Answer:
2. Which one of the following is correct with respect to going concern convention ?
(A) The enterprise is not going to terminate its operations in the period ahead
(B) The enterprise may go out of business in the next accounting period
(C) The enterprise may not divest or diversify its operational spheres
(D) The enterprise may not revalue its assets during the current accounting period
See Answer:
3. Which one of the following will lead to understatement of net profit ?
(A) Amortization of Fictitious Assets (B) Treating capital expenditures revenue expenditure
(C) Treating revenue expenditure as capital expenditure (D) Creation of general reserve
See Answer:
4. Which one of the following items is considered revenue expenditure ?
(A) Expenditure by way of maintenance that has increased productivity
(B) Repair of a gearbox in a car that has enhanced its operational life
(C) Complete overhaul of a machine, spending around 20% of its value
(D) Changing a small component of a machine to maintain its operating efficiency See Answer:
5. After the construction of their new factory building M/s XYZ Co. shifted to it. During this process
Rs. 20,000 were spent on pulling down the old structure and Rs. 2,000 were spent on shifting the
stocks to new building. These expenditures are to be classified as–
(A) Capital expenditure (B) Revenue expenditure (C) Capital and revenue expenditure respectively
(D) Deferred Revenue expenditure See Answer:
6. Which one of the following reports should have ‘responsibility statement’ under the Companies
Act, 1956 ?
(A) Auditor’s report (B) Board of Director’s report (C) Company Secretary’s report (D) Audit
Committee’s report See Answer:
7. Which one of the following reports deals with ‘Corporate governance’ ?
(A) Sabhanayagam Report (B) Kumaramangalam Birla Report (C) Narasimhan Report (D) L.C. Gupta
Report See Answer:
8. Minimum paid-up capital required to incorporate a public limited company is–
(A) Rs. 20,000 (B) Rs. 1,00,000 (C) Rs. 5,00,000 (D) Rs. 10,00,000 See Answer:
9. As per the Companies Act, 1956, who among the following must be included in the Audit
Committee constituted in a company ?
(A) Managing Director and whole-time Director (B) Auditor and Internal Auditor
(C) Company Secretary (D) Directors who are not whole-time and Managing Director See Answer:
10. Internal audit report is submitted to–
(A) Government (B) Shareholders (C) Creditors (D) Board of Directors See Answer:
11. The managerial function of organizing involves–
(A) reviewing and adjusting plan in the light of changing conditions
(B) establishing programme for the accomplishment of objectives
(C) creating a structure of functions and duties to be performed by a group
(D) getting things done through others See Answer:
12. Which one of the following is the most important function of a manager ?
(A) Communication (B) Directing (C) Supervising (D) Decision-making See Answer:
13. When there are large number of smaller projects and the activities of those projects are to be
accomplished by setting up some temporary departments, the appropriate organisation structure should
be–
(A) project organization (B) functional organisation (C) matrix organization (D) divisional
organisation See Answer:
14. Which one of the following is the major consideration for decentralization ?
(A) Organization’s environment (B) Nature of management function (C) Size of the organization
(D) Ability of higher-level managers See Answer:
15. Organisations require narrow span of control if there are–
(A) mature subordinates within (B) competent and trained managers
(C) unclear plans for non-repetitive operations (D) well-defined plans for repetitive operations
See Answer:
16. Section 210A concerning the Constitution of National Advisory Committee in Government for
advice on the formulation and laying down of accounting policy and accounting standards for adoption
by the companies or class of companies under the Act, has been inserted by–
(A) the Companies (Amendment) Act, 1999 with retrospective effect of 31.10.1998
(B) the Companies (Amendment) Act, 1988
(C) the Companies (Central Government) General Rules and Forms, 1956
(D) None of these.
See Answer:
17. Which of the following is not disqualified for appointment as auditor of a company ?
(A) A firm having chartered accountants as its partners
(B) An officer or employee of the company
(C) A person who is a partner or who is in the employment of an officer or employee of the company
(D) A person who is indebted to the company for an amount exceeding Rs. 1,000 or a guarantor for
more that Rs. 1,000
See Answer:
18. Which of the following amounts shall be credited to Investor Education and protection Fund, if
they remain unpaid/unclaimed for seven years from the date they become due ?
(A) Matured debentures of a company (B) Tax arrears (C) Proceeds of sale of property (D) Provision
for doubtful debts. See Answer:
19. Any casual vacancy in the office of a statutory auditor caused by the resignation of the auditor
shall be filled by the company–
(A) at the Board Meeting (B) at the Annual General Meeting (C) by means of a circular resolution (D)
at the Statutory Meeting. See Answer:
20. In verification of assets the duty of the auditor is–
(A) to ensure that asset have actually been acquired
(B) to ensure that they are clearly stated in the balance sheet
(C) to satisfy himself that they are properly valued
(D) to satisfy himself with regard to the existence, ownership and value of the assets.
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1. Which one of the following is an ingredient of the entity convention of accounting ?
(A) The owner of a unit and the unit itself is one and the same
(B) The owner and the unit are treated separately
(C) No separate accounts for the unit is required
(D) The unit is a private affairs of the owner, hence no accounting is required See Answer:
2. Which one of the following accounting equations is correct ?
(A) Assets = Owner’s Equity (B) Assets = Liabilities + Owner’s Equity
(C) Assets = Liabilities – Owner’s Equity (D) Assets + Liabilities = Owner’s Equity
See Answer:
3. Which one of the following accounting conventions stipulates that contingent assets appear as a
footnote in the balance sheet ?
(A) Materiality (B) Consistency (C) Disclosure (D) Conservation. See Answer:
4. Which one of the following is not related to the convention of conservatism ?
(A) Making provision for doubtful debts and discount on debts in anticipation of actual bad debtors
and discount
(B) Valuation of stock at Market Price or Cost Price whichever is higher
(C) Charging of small capital items as Revenue
(D) Adopting Written-down Value Method of depreciation as against Straight-line Method
See Answer:
5. On 31st March, 2013, the closing stock of X Ltd. was Rs. 3,45,000. On April 1, 2013, stock of Rs.
2,25,000 was destroyed by fire. The company closes its account on 31st March. If the balance sheet of
the company on 31st March, 2013 was finalized on 25th April, 2013, then the balance sheet will show
the closing stock at–
(A) Rs. 3,45,000 with no mention of fire (B) Rs. 1,20,000 with no mention of fire
(C) Rs. 3,45,000 showing loss by fire in footnote (D) Rs. 1,20,000 showing loss by fire in footnote
See Answer:
6. Greater mechanization of offices, results in–
(A) better house keeping (B) greater accuracy in the work (C) making employees cogs of the
machines (D) higher cost of running office See Answer:
7. O & M can be strengthened chiefly through–
(A) wage incentive plans (B) good store-keeping (C) improved office layout (D) better work
measurement See Answer:
8. Informal organization is as necessary as formal organization chiefly for the reason that it–
(A) resists change (B) builds morale (C) has close association with decision making (D) fulfils
separate goals and standards See Answer:
9. After the commencement of the Companies Act, 1956 no person, save as otherwise provided in
Section 276, shall hold office as director at the same time in more than–
(A) 5 Companies (B) 10 Companies (C) 15 Companies (D) 20 Companies See Answer:
10. A director having direct or indirect, interest or concern in a transaction of the company, has to
disclose his interest in a meeting to the–
(A) Board of Directors (B) Shareholders (C) Company Secretary (D) Registrar of Companies
See Answer:
11. Analytical review by an auditor mainly includes–
(A) examining vouchers and other documents (B) physical verification of assets
(C) examining day books with ledgers (D) study of ratios and trends See Answer:
12. Which one of the following pairs is not correctly matched ?
(A) Suppression of invoices– Window dressing (B) Overcharging depreciation– Secret reserves
(C) Omission of cash receipts from debtors– Understatement of sales (D) Omission of credit sale–
Understatement of debtors See Answer:
13. The main purpose of auditing is to–
(A) detect accounting offences and to punish the offender (B) prepare and authenticate the accounts
(C) prepare the accounts and authenticate their true and fair view (D) certify the financial position of
the business See Answer:
14. Statements on Standard Auditing Practices (SAPs) are important while discharging the auditing
function by a member of the ICAI in case of a company, because SAPs are–
(A) prescribed by the ICAI (B) contained in the Companies Act, 1956 (C) approved by the
Department of Company Affairs (D) approved by the Central Government in consultation with
Comptroller and Auditor-General See Answer:
15. The selection of items, to be included in the audit on a subjective basis without consideration of
sample size or method of selection, is–
(A) probability sampling (B) systematic sampling (C) random sampling (D) judgement sampling
See Answer:
16. Under Section 25 of the Companies Act, 1956 there is a power to dispense with the word ‘Limited’
in name to certain associated that may be registered as a company with limited liability. Who has the
power of this dispensation ?
(A) National Company Law Tribunal (B) Central Government (C) SEBI (D) Registrar of Companies.
See Answer:
17. Which one of the following is not a valid observation with reference to the declaration or payment
of dividend for any financial year ?
(A) Depreciation for the current financial year must be provided
(B) Arrears of depreciation must be provided
(C) Losses incurred in previous year(s) must be set off
(D) 10% of the profits must be transferred to the reserves in all cases. See Answer:
18. The auditor must ensure that the amount of premium on the issue of shares is not utilised for–
(A) issue of bonus shares
(B) writing off commission paid on the issue of shares
(C) providing for premium payable on redemption of preference shares
(D) transfer to capital redemption reserve See Answer:
19. According to the Companies Act, 1956 every registered company shall have to prepare which of
the following accounts and statements at the end of the financial year for approval of the shareholders
and submission to the Registrar of Companies ?
(A) Profit and Loss Account and Balance Sheet after making adjustments for inflation
(B) Profit and Loss Account. Balance Sheet and Funds Flow statement
(C) Profit and Loss Account ‘Balance Sheet’ and Cash Flow statement
(D) Profit and Loss Account and Balance Sheet. See Answer:
20. The system of internal check ensures that–
(A) work is distributed among the employees according to their merit and qualifications
(B) work is completed as per the prescribed time schedule
(C) work performed by one employ is automatically checked by another employee
(D) work performed by one employee is checked by internal audit staff
See Answer: - See more at: http://www.allexamgurublog.com/2013/05/commerce-questions-for-bank-
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FEMA stands for–
(A) Foreign Exchange Management Act (B) Funds Exchange Management Act
(C) Finance Enhancement Monetary Act (D) Future Exchange Management Act See Answer:
2. What of the following is false about W.T.O. ?
(A) It is the main organ for implementing the Multilateral Trade Agreement
(B) It is global in its membership
(C) It has far wider scope than GATT
(D) Only countries having more than prescribed level of total GDP can become its member
See Answer:
3. Convertibility of the rupee implies–
(A) Being able to convert rupees notes into gold
(B) Allowing the value of the rupee to be fixed by marketforces
(C) Freely permitting the conversion of rupee to other major currencies and vice versa
(D) Developing an international market for currencies in India
See Answer:
4. ……........… has been founded to act as permanent watchdog on the international trade.
(A) ISRD (B) ADS (C) WTO (D) DIMF See Answer:
5. Which of the following statement is correct ?
(A) The disinvestment programme has been successfully carried out in India
(B) Privatisation up to 100% has been carried out in all the PSU in India
(C) Under strategic sale method of disinvestment, the government sells a major share to a strategic
partner (D) None of the above See Answer:
6. Advance Income-tax is shown in the–
(A) Debit side of Profit and Loss Account (B) Liability side of the Balance Sheet
(C) Credit side of Profit and Loss Account (D) Assets side of the Balance Sheet See Answer:
7. A and B were sharing profits of a business in the ratio of 3 : 2. They admit C into partnership, who
gets 1/3 of A’s share of profit from A, 1/2 of B’s share of profit from B.
The new profit sharing ratio will be–
(A) 3 : 2 : 5 (B) 2 : 1 : 2 (C) 3 : 2 : 1 (D) 3 : 2 : 2 See Answer:
8. In the absence of a Partnership Deed, the rate of interest allowed on the partner’s loan to the firm is–
(A) 5% (B) 6% (C) 10% (D) None of the above See Answer:
9. Interim Dividend is shown–
(A) In Profit and Loss Account (B) In Profit and Loss Appropriation Account
(C) On Asset side of Balance Sheet (D) On Liabilities side of Balance Sheet See Answer:
10. Redeemable Preference shares of Rs. 1‚00‚000 are redeemed at a premium of 5%. With this object
equity shares of Rs. 40‚000 are issued at par. What amount should be transferred to Capital
Redemption Reserve Account ?
(A) Nil (B) Rs. 1‚05‚000 (C) Rs. 65‚000 (D) Rs. 60‚000
See Answer:
11. Match List-I with List-II and select the correct answer from the codes given below–
List-I
(a) Planning (b) Staffing (c) Directing (d) Controlling
List-II
1. Training 2. Forecasting 3. Evaluating 4. Motivating
Codes :
(a) (b) (c) (d)
(A) 2 4 1 3 (B) 1 2 3 4 (C) 2 1 4 3 (D) 3 4 2 1 See Answer:
12. Memorandum of Association contains–
(A) Objective clause (B) Name clause (C) Capital clause (D) All of the above See Answer:
13. ‘Table A’ is an alternative to–
(A) Prospectus (B) Articles of Association (C) Memorandum of Association (D) None of the above
See Answer:
14. The ‘Doctrine of Indoor Management’ provides protection to the–
(A) Board of Directors (B) Shareholders (C) Managing Director (D) Outsiders See Answer:
15. By which of the following methods a Company Secretary can be removed from his post ?
(A) By passing a resolution in Board Meeting (B) By order of Registrar of Companies
(C) By passing a resolution in Annual General Meeting (D) None of the above See Answer:
16. Which one of the following statements is correct in respect of Duty Drawback Scheme ?
(A) Relieving export goods of duties paid for components used for manufacturing the export goods
(B) Providing cash incentives to exporters to compensate the duty paid by them in foreign countries
(C) Compensating importers to the extent of import duty paid by them for importing life-saving drugs
(D) Providing a facility for withdrawing the duty paid by exporters if their exports are rejected in
foreign countries
See Answer:
17. In foreign trade, what is the price quoted by a supplier which includes all charges incurred up to
door delivery of goods to the buyer, called ?
(A) Loco price (B) C.I.F. price (C) Franco price (D) Landed price See Answer:
18. Consider the following statements–
1. Letter of credit cannot be opened by mail.
2. Contracts of export of goods and services against payment to be secured partly or fully beyond 90
days are treated as deferred payment exports.
Which of the statements given above is/are correct ?
(A) 1 only (B) 2 only (C) Both 1 and 2 (D) Neither 1 nor 2 See Answer:
19. Under which principle, all the rights of an insured are transferred to insurance company after
making payment of claim ?
(A) Subrogation (B) Utmost good faith (C) Contribution (D) Average clause See Answer:
20. In a marine insurance, when must the insurable interest exist ?
(A) At the time of making contract (B) At the time of loss of subject matter
(C) Both at the time of making contract and at the time of loss of subject matter
(D) At the time of termination of the policy - See more at:
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. Henry Fayol is known for–
(A) Scientific Management (B) Rationalisation (C) Industrial Psychology (D) Principles of
Management See Answer:
2. Unity of command implies having not more than one–
(A) Subordinate (B) Friend (C) Boss (D) Unit See Answer:
3. ‘x’ and ‘y’ theory of Motivation has been propounded by–
(A) McGregor (B) Maslow (C) Ouchi (D) Herzberg See Answer:
4. Coordination has the following features–
(A) Continuous (B) Vertical organisation (C) Horizontal relationship (D) All of the above
See Answer:
5. Which one of the following is not a barrier in communication ?
(A) Noise (B) Affection (C) Fear and distrust (D) Perception See Answer:
6. A Company can reissue its forfeited shares–
(A) At a premium (B) At a face value (C) At a discount (D) All of the above See Answer:
7. Which of the following is an example of capital expenditure ?
(A) Insurance Premium (B) Taxes and Legal expenses (C) Depreciation (D) Custom duty on import
of machinery See Answer:
8. Given :
Average profit of a firm Rs. 21,000, Normal Profit Rs. 18,000, Value of goodwill on the basis of 3
years purchases of super profit shall be–
9. A co-operative auditor starts his work of audit from–
(A) Account Books (B) Payment Books (C) Cash Book (D) None of the above See Answer:
10. Accounting for research and development relates to–
(A) AS-7 (B) AS-8 (C) AS-9 (D) AS-10 See Answer:
11. When does a body corporate become capable forthwith of exercising all the functions of a
company ?
(A) On finalizing Memorandum of Association (B) On obtaining certificate of commencement of
business (C) On obtaining certificate of incorporation (D) On having convened its first Annual
General Meeting See Answer:
12. Pohang Steel Company (POSCO) is a company originally based in–
(A) Vietnam (B) South Korea (C) USA (D) Italy See Answer:
13. Which one of the following is not one of the elements of the 7S McKinsey Model for analyzing
and improving organizational effectiveness ?
(A) Strategy (B) Structure (C) Shared Values (D) Standard See Answer:
1. Aggregate planning implies operational planning concerned with determining a firm's production
requirements and manufacturing capacity.
2. Behaviour modification is a concept of motivation totally independent of rewards for the
employees.
15. What is the correct sequence of the following steps in a strategic planning process ?
1. Inputs 2. Evaluation of alternatives
3. Execution 4. SWOT analysis
Select the correct answer using the code given below–
(A) 1 - 4 - 2 – 3 (B) 4 - 1 - 2 – 3 (C) 1 - 2 - 3 – 4 (D) 4 - 1 - 3 – 2 See Answer:
16. Which one among the following is not true for Special Economic Zones?
(A) No routine examination of cargo for export/import by customs authorities
(B) No licence is required for import
(C) Manufacturing and service activities are allowed
(D) No permission for subcontracting See Answer:
17. Which one among the following industries produces the most nonbiodegradable wastes?
(A) Thermal power plants (B) Paper mills (C) Food processing units (D) Textile mills See Answer:
18. Brent index is associated with–
(A) shipping rate index (B) crude oil prices (C) copper future prices (D) gold future prices
See Answer:
19. Which one among the following is not true of the planning Commission?
(A) It indicates the factors which tend to retard economic development
(B) It is an advisory body and makes recommendations to the cabinet
(C) It is responsible for formulation of a plan for the most effective and balanced utilisation of the
country's resources
(D) It is responsible for the execution of development programmes and plans See Answer:
20. Which one of the following statements about RBI is 'True'?
(A) RBI maintains the foreign exchange reserves of India
(B) RBI is the regulator of Banks and Securities market in India
(C) RBI started functioning from 1870
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1. Control function of management implies–
(A) To bring harmony in various activities (B) To keep the workforce satisfied
(C) To take corrective course of action (D) To dictate the subordinates See Answer:
2. Coordination function of management aims at–
(A) Providing sufficient personnel (B) Bringing harmony in various activities
(C) Taking up corrective course of action (D) All the above See Answer:
3. “Authority flows downwards from top to the bottom whereas accountability flows upwards from
bottom to top.” It is found in–
(A) Scalar chain (B) Functional organisation (C) Committee structure (D) Multivariate Approach
See Answer:
4. Maslow’s needs hierarchy theory relates to–
(A) Motivation (B) Leadership (C) Communication (D) Directing See Answer:
5. M.B.O. is a technique of–
(A) Planning only (B) Controlling only (C) Neither planning nor controlling (D) Both planning and
controlling See Answer:
6. Pre-incorporation Profit is transferred to–
(A) General Reserve (B) Capital Reserve (C) Profit and Loss A/c (D) Trading A/c See Answer:
7. Which of the following is shown in Profit Loss Appropriation A/c ?
(A) Provision for Income Tax (B) Provision for Depreciation
(C) Provision for Doubtful Debts (D) Contribution to General Reserve See Answer:
8. On liquidation of a Company first payment is made in respect of–
(A) Liquidator’s remuneration (B) Legal expenses (C) Preferential creditors (D) None of the above
See Answer:
9. Workmen’s Compensation Fund is a–
(A) Provision (B) Surplus (C) Current liability (D) Loan See Answer:
10. Debentures of Rs. 4,25,000 are issued against the purchase of assets of Rs. 4,50,000. In this case
the amount of Rs. 25,000 is–
(A) Capital Reserve (B) Securities Premium (C) Revenue Profit (D) Goodwill See Answer:
11. In case of any default made in complying with the provisions relating to the postal ballot, the
officer on default will be punishable with which one of the following fines ?
(A) Rs. twenty thousand in respect of each such default
(B) Rs. fifty thousand in respect of each such default
(C) Rs. one lakh in respect of each such default
(D) Rs. two lakh in respect of each such default See Answer:
12. A listed company opting for buyback of shares under the Companies Act, 1956 has to submit
return, after completion of such buy-back within which one of the following periods ?
(A) 6 months of such completion to the Registrar of Companies only
(B) 45 days of such completion to the SEBI only
(C) 30 days of such completion to the Registrar of Companies and SEBI
(D) 30 days of such completion to the SEBI only See Answer:
13. Private equity investors invest in a company based mainly on–
(A) the creditability and the valuation of the company (B) the age of the company
(C) the location of the company (D) the activity undertaken by the company See Answer:
14. What is Director Identification Number (DIN) ?
(A) An identification number which the individual company allots to the intending director
(B) A number which the Central Government allots to any individual intending to be appointed as
director or to any existing director of a company
(C) A number which the SEBI allots to any individual intending to be appointed as director or to any
existing director of a company
(D) A number which the Central Government allots to retired directors so as to build data base
See Answer:
15. Disinvestment in Public Sector is called–
(A) Privatisation (B) Globlisation (C) Liberalisation (D) Industrialisation See Answer:
16. Debtors turnover ratio is 4, What is the average collection period ?
(A) 5 months (B) 4 months (C) 3 months (D) 2 months See Answer:
17. The net profits of a business after providing for taxation for the past five years are Rs. 80,000, Rs.
85,000, Rs. 92,000, Rs. 1,05,000 and Rs. 1,18,000. Capital employed in the business is Rs. 8,00,000.
Normal rate of return is 10%. What is the value of goodwill on the basis of capitalization of super
profit method ?
(A) Rs. 1,00,000 (B) Rs. 1,50,000 (C) Rs. 1,60,000 (D) Rs. 1,80,000 See Answer:
18. Given–
Purchases – Rs.50,000, Sales – Rs.90,000, Closing Stock – Rs.7,000, Manufacturing Exp. – Rs.5,000
Rate of gross profit – Rs.331 3% on cost
What is the opening stock ?
19. A particular firm provided the following data for a year–
Current Ratio 2•5 : 1 Liquid Ratio 1•5 : 1 Net Working Capital Rs. 3,00,000
What are the current assets and current liabilities of this firm, respectively ?
(A) Rs. 3,00,000 and Rs. 1,50,000 (B) Rs. 5,00,000 and Rs. 2,00,000 (C) Rs. 2,00,000 and Rs.
5,00,000 (D) Rs. 3,00,000 and Rs. 1,00,000 See Answer:
20. Depreciation is a process of which one of the following ?
(A) Valuation of assets
(B) Allocation of acquisition cost over the estimated useful life of the asset
(C) Allocation of realizable value over the estimated useful life of the asset
(D) Estimating the market value of the asset on the balance sheet date - See more at:
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1. Audit adopted by banking company is–
(A) Continuous Audit (B) Periodical Audit (C) Internal Audit (D) Balance Sheet Audit
See Answer:
2. Which of the following have lien of Company Auditor ?
(A) Books of Accounts of the Company (B) Vouchers of the Company
(C) Auditor’s working paper (D) All of the above See Answer:
3. To appoint new auditor in place of retiring auditor, to adopt the procedure, which section of
Companies’ Act, 1956 is applicable ?
(A) 223 (B) 224 (C) 225 (D) 226 See Answer:
4. “A company has a separate legal existence from its members.” This principle was first laid down in
case of–
(A) Saloman Vs. Saloman & Co. Ltd. (1897)
(B) Daimler Co. Ltd. Vs. Continental Tyre & Rubber Co. (1916)
(C) State of U. P. Vs. Renu Sagar Power Co. (1991)
(D) Santunu Roy Vs. Union of India (1989)
See Answer:
5. According to ownership, Government Company means ……… share.
(A) Whose paid-up share capital’s 48%, shares are owned by Government
(B) Whose paid-up share capital’s 49% shares are owned by Government
(C) Whose paid-up share capital’s 50% shares are owned by Government
(D) Whose paid-up share capital’s 51% shares are owned by Government
See Answer:
6. Match the following List-I with List-II and select the correct answer from the answer codes given
below–
List-I
(a) AS-6 (b) AS-10 (c) AS-26 (d) AS-20
List-II
1. Accounting for Earning per share 2. Accounting for intangible and fictitious assets
3. Accounting for fixed assets 4. Depreciation Accounting
Codes :
(a) (b) (c) (d)
(A) 1 2 3 4 (B) 3 2 1 4 (C) 1 3 2 4 (D) 4 3 2 1 See Answer:
7. Establishment expenses of a new machine will be debited to–
(A) Expenses Account (B) Profit and Loss Account (C) Machinery Account (D) None of the above
See Answer:
8. Goodwill is–
(A) Floating Asset (B) Wasting Asset (C) Fictitious Asset (D) Intangible Asset See Answer:
9. A Balance Sheet shows only–
(A) Personal Accounts and Nominal Accounts (B) Real Accounts and Nominal Accounts
(C) Personal Accounts and Real Accounts (D) Personal, Real and Nominal Accounts See Answer:
10. Discount on Issue of Shares A/c is shown at the–
(A) Debit side of P & L A/c (B) Assets side of B/S (C) Liabilities side of B/S (D) None of the above
See Answer:
11. Given :
Realised value of assets Rs. 60,000, Profit on Realisation Rs. 3,000, Book value of assets will be–
12. A, B and C are partners sharing profits and losses in the ratio of 4 : 3 : 2. D is admitted for 1/10
share. The new ratio will be–
(A) 5 : 4 : 3 : 2 (B) 4 : 4 : 3 : 2 (C) 4 : 3 : 2 : 1 (D) None of the above See Answer:
13. If actual average profit is Rs. 30,000 and normal rate of return is 12%, then capitalization value of
the profits will be–
(A) Rs. 3,60,000 (B) Rs. 2,50,000 (C) Rs. 3,05,000 (D) None of the above See Answer:
14. Under which Section of Companies’ Act an auditor has a right to participate and to speak in the
General Meeting ?
(A) 231 (B) 229 (C) 226 (D) 224 See Answer:
15. New profit sharing ratio is calculated at the time of–
(A) Admission of a new partner (B) Retirement of a partner (C) Death of a partner (D) All of the
above See Answer:
16. Consider the following–
Amortization refers to writing off the value of
(1) tangible assets (2) intangible assets (3) fictitious assets
Which of the above is/are correct ?
(A) 1 and 2 (B) 2 and 3 (C) 1 only (D) 2 only See Answer:
17. The following information is disclosed by ‘A’– Rs. Provision for doubtful debts as on 1.1.2012 :
6,000 Bad debts written off during the year 2012 : 1,200 Total debtors as on
31.12.2012 : 80,000 A provision for Doubtful Debts to be made @ 5% What is the amount to be
shown on the credit side of P/L A/c ?
(A) Rs. 4,800 (B) Rs. 2,400 (C) Rs. 1,200 (D) Rs. 800 See Answer:
18. What is reduction of paid-up share capital called ?
(A) External reconstruction (B) Internal reconstruction (C) Reorganization (D) Redemption of capital
See Answer:
19. Under which of the following methods of depreciation the amount of an asset is never reduced to
zero ?
(A) Straight line method (B) Diminishing balance method (C) Sums of Years Digit method (D)
Annuity method
See Answer:
20. An insurance claim of Rs. 300 was accepted in respect of stock (inventory) of Rs. 500, which was
destroyed by fire. Rs. 200 not covered by insurance should be debited to which one of the following ?
(A) Stock account (B) Trading account (C) Profit and loss account (D) Goodwill account - See more
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1. Auditor shall be punished with imprisonment for a maximum period of ……… under Section 539
for falsification in the books of accounts.
(A) 3 years (B) 5 years (C) 7 years (D) 9 years See Answer:
2. “Auditor is not an insurer.” In which of the following cases, the decision has been given ?
(A) The Kingston Cotton Mills Co. Ltd. (1986) (B) London & General Bank (1895)
(C) Allen Craig & Co. Ltd. (1934) (D) Irish Woollen Co. Ltd. See Answer:
3. The Section 80A of the Companies’ Act is related with the redemption of–
(A) Debentures (B) Redeemable preference shares (C) Irredeemable preference shares (D) None
See Answer:
4. Company Auditor is responsible–
(A) For directors (B) For shareholders (C) For public (D) For creditors See Answer:
5. In Balance Sheet, Audit Accounts are audited–
(A) Monthly (B) Bi-monthly (C) Annually or half yearly (D) Quarterly See Answer:
6. The share of new partner in the profits is 1/5 and his capital is Rs. 20,000. The new profit sharing
ratio is 3 : 1 : 1. The share of partners in total capital will be–
(A) 60,000 : 20,000 : 20,000 (B) 80,000 : 20,000 : 20,000 (C) 50,000 : 20,000 : 25,000 (D) None of
the above See Answer:
7. At the time of dissolution the loss of the business, will be compensated first of all from–
(A) Capital (B) Profits (C) Personal resources of the partners (D) Donations See Answer:
8. The meaning of written down value is–
(A) Original cost – Scrap value (B) Book value + Depreciation (C) Book value – Depreciation (D)
None of these See Answer:
9. Given :
Depreciation on the basis of Fixed Instalment Method Rs. 2,000 p.a.
Establishment expenses Rs. 5,000, Scrap value Rs. 1,000, Span of life 10 years
The cost of assets will be–
(A) Rs. 20,000 (B) Rs. 16,000 (C) Rs. 12,000 (D) None of these See Answer:
10. Given :
Cost Rs. 1,00,000, Scrap Value Rs. 10,000, Span of Life 10 years, Rate of depreciation 20% p.a.
The amount of depreciation for the first year on the basis of diminishing balance method will be–
11. Internal check is a part of–
(A) Internal Audit (B) Internal Control (C) Annual Audit (D) Standard Audit
See Answer:
12. Cost Audit Report is to be submitted to–
(A) The Company (B) The Central Government with a copy to the Company (C) The Central
Government (D) The Company Secretary See Answer:
13. A company auditor addresses his report to–
(A) Board of Directors (B) Members (C) Managing Director (D) Company Secretary
See Answer:
14. Which of the following Sections of the Companies’ Act 1956 relates to the maintenance of proper
books of accounts ?
(A) Section-211 (B) Section-217 (C) Section-209 (D) Section-205 See Answer:
15. X and Y are partners sharing profits in the ratio of 4 : 3. They admit a new partner Z and new
profit sharing ratio is 7 : 4 : 3. The sacrificing ratio between X and Y will be–
(A) Equal (B) 4 : 3 (C) 2 : 1 (D) 1 : 2 See Answer:
16. BIPA with Sudan comes into effect was the news, it is an agreement for–
(A) Investment in a country (B) Peaceful use of atomic power
(C) Allowing students to visit each other's nation (D) Allowing people to come for medical treatment
See Answer:
17. The balance of old provision for doubtful debts on 1-4-2012 was Rs. 10,000. The bad debts written
off during the year 2012-13 amounted to Rs. 12,000, and the new provision requiredon 31-3-2007 was
Rs. 15,000. What is the total amount to be debited to profit and loss account on account of bad debts
and the provision for doubtful
debts ?
18. A and B sharing profit in the ratio of 3 : 2 and having capitals of Rs. 30,000 (for A) and Rs. 15,000
(for B), decided to dissolve their firm. After paying off all liabilities, cash realized from various assets
is Rs. 15,000. How will this amount be distributed to A and B ?
(A) A–Rs. 9,000 and B–Rs. 6,000 (B) A–Rs. 10,000 and B–Rs. 5,000
(C) A–Rs. 7,500 and B–Rs. 7,500 (D) A–Rs. 12,000 and B–Rs. 3,000 See Answer:
19. X and Y sharing profits in the ratio of 7 : 3 admit Z on 37th share in the new firm. Z takes 27 th
from X and 17th from Y.
What is the new ratio among X, Y and Z ?
(A) 7 : 3 : 3 (B) 4 : 2 : 15 (C) 14 : 6 : 15 (D) 29 : 11 : 30 See Answer:
20. Given–
Opening inventory : Rs. 3,500, Closing inventory : Rs. 1,500, Cost of goods sold : Rs. 22,000
What is the amount of purchase ?
(A) Rs. 20,000 (B) Rs. 24,000 (C) Rs. 27,000 (D) Rs. 17,000
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1. The following data are provided to you.
Fixed cost - Rs. 20,000; Selling price per unit - Rs. 25, Variable cost per unit - Rs. 20. Find out selling
price per unit if B.E.P. is brought down to 2,000 units.
(A) Rs. 30 (B) Rs. 40 (C) Rs. 50 (D) Rs. 60 See Answer:
2. Among the following which is not an error of commission ?
(A) Wrong totalling (B) Recording with wrong amount (C) Wrong posting (D) Escape from posting
See Answer:
3. Internal check means–
(A) Checking of accounts by cashier (B) Checking of accounts by the Internal Auditor
(C) Checking the work of one person by another automatically (D) Managerial control internally over
the subordinates See Answer:
4. Verification includes–
(A) Valuation (B) Existence (C) Ownership & Title (D) All of the above See Answer:
5. By whom from the following, auditor can be reappointed ?
(A) Directors (B) Shareholders (C) Central Government (D) All of the above See Answer:
6. Liability of partners in respect of the firm’s debt is–
(A) Limited to the amount of his capital in the business (B) Unlimited
(C) Limited to the amount of guarantee given by the partner
(D) Limited to the amount of capital and the loan to the firm, if any See Answer:
7. A Government Company is one in which at least the following percentage of share capital is held by
the Central and/or State Government–
(A) 25% (B) 26% (C) 50% (D) 51% See Answer:
8. Planning function of management is performed by–
(A) Top level management (B) Middle level management (C) Lower level management (D) None of
the above
See Answer:
9. Special plans made for facing competition are known as–
(A) Objectives (B) Strategies (C) Policies (D) Budgets See Answer:
10. ‘Span of Management’ means–
(A) A good organization should consist of five departments (B) Authority of each person must be
clearly defined (C) Each subordinate should have one superior (D) A manager can supervise a
limited number of executives See Answer:
11. The function of an Auditor is–
(A) To examine arithmetical accuracy of accounts (B) To detect and prevent errors
(C) To detect and prevent frauds (D) All of the above See Answer:
12. Audit is compulsory for–
(A) Sole Trader (B) Partnership Firms (C) Joint Stock Companies (D) All of the above
See Answer:
13. Which of the following organisation makes "Doing Business Report" every year?
(A) WTO (B) World Bank (C) UNCTAD (D) IMF See Answer:
14. In the absence of Articles of Association, an Auditor should keep in mind–
(A) Prospectus (B) Table ‘A’ (C) Memorandum of Association (D) Legal Declaration See Answer:
15. Who may recommend Special Audit of a Company ?
(A) Directors of the Company (B) Shareholders of the Company
(C) Debentureholders of the Company (D) Central Government See Answer:
16. Which one of the following statements is correct ?
(A) If an asset is used by a company, it should be owned by the company
(B) Verification of liabilities means that the amounts of current and long-term liabilities shown in the
balance sheet are correct
(C) Vouching and verification means the same thing
(D) It is not the duty of an auditor to confirm the physical existence and ownership of an asset
See Answer:
17. Which of t he following terms is normally not seen in the field of International Relations?
(A) Alluvial Soil (B) Exchange Rate (C) OECD (D) Free Trade See Answer:
18. What does payout ratio mean ?
(A) Ratio of debtors to creditors (B) Ratio of profit distributed to profit retained
(C) Ratio of dividends per share and earnings per share (D) Retained earnings See Answer:
1. Premium on issue of shares is transferred to General Reserve Account.
2. For declaration of bonus shares out of General Reserve, a resolution in the shareholders' meeting is
necessary.
20. How is ‘Calls in arrear’ shown in the balance sheet on the liability side ?
(A) By deducting the amount from the called up capital
(B) Under the heading ‘Reserves and Surplus’
(C) By deducting the amount from ‘Capital Reserve’
(D) By deducting the amount from the ‘Share Forfeited Account’ - See more at:
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