CA CPT DECEMBER 2017
Session – I
Part A – Fundamentals of Accounting
Q. 1 Which of the following is not a fundamental accounting assumption?
A. Going concern
B. Consistency
C. Prudence
D. Accrual
Q. 2 A change in accounting policy is justified:
A. To comply with accounting standard
B. To ensure more appropriate presentation of the financial statements of the enterprise
C. To comply with law
D. All of the above
Q. 3 Cost of inventory Rs. 1,00,000; Market Value Rs. 80,000. If the inventory is valued at 1,00,000, which of the following accounting concepts is violated?
A. Money measurement
B. Cost
C. Prudence
D. Periodicity
Q. 4 Amount paid to a supplier is:
A. An event
B. A Transaction
C. Both (a) and (b)
D. Neither (a) nor (b)
Q. 5 Economic life of an enterprise is split into some periodic intervals as per ___ concept:
A. Money Measurement
B. Matching
C. Periodicity
D. Accrual
Q. 6 According to _________ concept, the same method of accounting is to be followed year after year:
A. Going Concern
B. Entry
C. Cost
D. Consistency
Q. 7 Benefits of AS (Accounting Standards) are:
A. To harmonise accounting policies
B. To eliminate the non-comparability of financial statements
C. To improve the reliability of financial statements
D. All of the above
Q. 8 Purpose of an accounting system include all the following except:
A. Interpret and record the effects of business transaction
B. Classify the effects of transactions to facilitate the preparation of reports
C. Summarize and communicate information to decision markers
D. Dictate the specific types of business enterprise transactions that the Dictate the specific types of business enterprise transactions that the enterprises may engage in
Q. 9 Prepaid Insurance account is a ______________ :
A. Nominal account
B. Real account
C. Representative Personal Account
D. Artificial Personal account
Q. 10 A trader purchased goods for Rs.4,000 at a trade discount of 5%. As he paid the amount immediately, a cash discount of Rs.100 was also allowed. In this case, Purchases A/c is debited by:
A. Rs.4,000
B. Rs.3,800
C. Rs.3,700
D. Rs.3,900
Q. 11 A trader purchased goods for Rs. 4,000 at a trade discount of 5%. As he paid the amount immediately, a cash discount of Rs.100 was also allowed. In this case, Purchases A/c is debited by:
A. Business premises A/c
B. Purchases A/c
C. Sales A/c
D. None of the above
Q. 12 Cash Book is a type of _____________ but treated as a __________ of accounts:
A. Subsidiary book, principal book
B. Principal book, subsidiary book
C. Subsidiary book, subsidiary book
D. Principal book, principal book
Q. 13 A sales return of Rs. 2,000 has been wrongly posted to the credit of Purchase Returns accounts, but has been correctly posted to the customer’s account. The effect on the trial balance will be:
A. Debit total increases by Rs. 4,000
B. Credit total increases by Rs. 4,000
C. Credit total increases by Rs. 2,000
D. Debit total increases by Rs. 2,000
Q. 14 While finalizing the current year’s profit, the company realized that there was an error in the valuation of closing inventory of the previous year. In the previous year, closing inventory was valued more by Rs. 50,000. As a result:
A. Previous year’s profit is overstated and current year’s profit is also overstated
B. Previous year’s profit is understated and current year’s profit is overstated
C. Previous year’s profit is understated and current year’s profit is also understated
D. Previous year’s profit is overstated and current year’s profit is also understated
Q. 15 An amount of Rs. 500 received from a customer has been debited to his account. This error is classified as____________:
A. Error of principle
B. Error of omission
C. Error of commission
D. Compensating error
Q. 16 Starting with the Debit balance as per Cash Book, cheques deposited but not cleared will be:
A. Added in B.R.S.
B. Deducted in B.R.S.
C. Ignored in B.R.S.
D. None of the above
Q. 17 A trader has an opening inventory of Rs. 70,000 on 1.1.2016, which consists of a slow moving item costing Rs. 10,000 and was written off by Rs. 2,000. This item was sold for Rs. 9,000 during the year. Barring the transaction, the gross profit on sales for the year 2016-17 remained at 20%. The sales and purchases during the year amounted to Rs. 5,09,000 & Rs. 3,78,000 respectively. Find the value of closing inventory on 31.03.2017:
A. Rs. 44,000
B. Rs. 38,000
C. Rs. 40,000
D. Rs. 42,000
Q. 18 During a year the sales and purchases of a firm amounted to Rs. 4,00,000 and Rs. 4,00,000 respectively. Opening inventory was Nil. Closing inventory at selling price was Rs. 1,00,000. Find out the cost of closing inventory using Adjusted Selling Price Method:
A. Rs. 80,000
B. Rs. 1,00,000
C. Rs. 1,50,000
D. Rs. 1,40,000
Q. 19 E Ltd. a dealer in second-hand cars has the following five vehicles of different models and makes in their inventory at the end of the financial year 2009-10.
| Car | Cost(Rs.) | NRV(Rs.) |
| Fiat | 90,000 | 95,000 |
| Ambassador | 1,15,000 | 1,55,000 |
| Maruti Esteem | 2,75,000 | 2,65,000 |
| Maruti 800 | 1,20,000 | 1,25,000 |
A. Rs. 7,62,500
B. Rs. 7,70,000
C. Rs. 5,90,000
D. Rs. 8,70,000
Q. 20 Which of the following expenses is not included in the acquisition cost of a plant and equipment?
A. Cost of site preparation
B. Delivery and handling charges
C. Installation costs
D. Fire Insurance premium
Q. 21 A machinery was purchased for Rs. 6,00,000 on 01.04.2012 and paid Rs. 30,000 on its installation. It is estimated that the useful life of the machinery is 10 years and its scrap value is Rs. 20,000. The amount of depreciation to be charged for the year ending 31.03.2017 will be ___________:
A. Rs. 61,000
B. Rs. 62,000
C. Rs. 60,000
D. Rs. 63,000
Q. 22 The book value of a machinery on 01.04.2016 was Rs. 70,000. Depreciation is charged at 10% p.a. under W.D.V. Method on 31st March every year. The machine was sold for Rs. 60,000 on 01.08.2017, Calculate the Profit / Loss on sale of machinery:
A. Profit Rs. 3,000
B. Loss Rs. 3,000
C. Profit Rs. 900
D. Loss Rs. 900
Q. 23 The objectives of providing depreciation on an asset are:
A. To ascertain the true Profit/Loss of the firm
B. To provide funds for the replacement of fixed asset
C. To show the true financial position in the Balance Sheet
D. All of the above
Q. 24 The machine is purchased for Rs. 3,00,000. Its estimated working life is 28,000 hours, the Scrap value is Rs. 20,000. Anticipated pattern of working hours are as follows:
| Year | Hours |
| 1 | 3 3,000 |
| 4 | 6 2,600 |
| 7 | 10 2,800 |
Depreciation for 8th Years is :
A. Rs. 28,000
B. Rs. 19,286
C. Rs. 30,000
D. Rs. 26,000
Q. 25 Increase in the value of Assets Rs. 1,00,000. Decrease in the value of Liabilities Rs. 50,000. Then owner’s equity will:
A. Increase by Rs. 1,50,000
B. Increase by Rs. 50,000
C. Decrease by Rs. 1,50,000
D. Decrease by Rs. 50,000
Q. 26 Net profit before the charging manager’s commission is Rs. 49,500 and the manager is to be allowed a commission of 10% on the profit after charging such a commission. Commission amount will be ___________:
A. Rs. 5,000
B. Rs. 4,950
C. Rs. 4,500
D. None of these
Q. 27 Goods costing Rs. 8,000 were destroyed by fire. Insurance company accepted a claim of Rs. 5,000. The amount to be credited to Purchases / Trading A/c will be _________ :
A. Rs. 5,000
B. Rs. 8,000
C. Rs. 3,000
D. Rs. 13,000
Q. 28 Capital introduced at the beginning by Ram Rs. 13,000 Further capital introduced during the year Rs. 3,000. Drawings Rs. 4,000 and closing capital is Rs. 20,000. The amount of net profit will be:
A. Rs. 1,57,500
B. Rs. 1,50,000
C. Rs. 1,80,000
D. Rs. 1,65,000
Q. 29 Rent paid on 1st October, 2016 for the year to 30th September, 2017 was Rs. 1,50,000 and rent paid on 1st October, 2017 for the year to 30th September, 2018 was Rs. 1,80,000. Rent paid, as shown in the Profit and Loss account for the year ended 31st December 2017, would be:
A. Rs. 1,57,500
B. Rs. 1,50,000
C. Rs. 1,80,000
D. Rs. 1,65,000
Q. 30 For mutual accommodation of Mita and Rita, Rita accepted a bill drawn on her by Mita for Rs. 7,500. The said bill is discounted by Mita at Rs. 7,400 and remitted 1/3rd of the proceeds to Rita. To honour the bill, the amount to be paid by Mita to Rita on the due date will be:
A. Rs. 7,500
B. Rs. 4,500
C. Rs. 5,000
D. None of the above
Q. 31 Ram draws a bill on Rahim for Rs. 15,000. The bill was discounted with Bank at Rs. 14,900. On the due date the bill was dishonoured and the noting charges amounted to Rs. 50. What is the amount to be debited by the Bank to Ram’s account?
A. Rs. 14,000
B. Rs. 14,900
C. Rs. 15,000
D. Rs. 15,050
Q. 32 G draws a bill on R.G. endorses the bill to S. On the due date the bill is dishonoured. On dishonor, which account is credited in the books of G?
A. Bills Receivable A/c
B. S A/c
C. R A/c
D. Bills Payable a/c
Q. 33 600 boxes of goods are consigned at a cost of Rs. 250 each. Consignor’s expenses amounted to Rs. 3,000. 1/6th of the boxes are still in transit. 3/5th of the boxes received by consignee are sold at Rs. 300 each. The value of goods in transit will be
A. Rs. 25,500
B. Rs. 25,000
C. Rs. 30,000
D. Rs. 40,000
Q. 34 MN of Mumbai sent out goods costing Rs. 4,00,000 to QR of Delhi on a consignment basis. Consignee is paid an ordinary commission of 2% and a delivered commission of 3% on sales. The entire goods were sold by consignee for Rs. 5,00,000. However, the consignee could recover Rs. 4,92,000 from the trade receivables. In the books of consignee, the commission to be transferred to profit & Loss A/c will be :
A. Rs. 25,000
B. Rs. 17,000
C. Rs. 20,000
D. Rs. 33,000
Q. 35 Mr. Mehta sent 1,000 shirts costing Rs. 400 each to Mr. Kehta on consignment basis. Mehta paid Rs. 20,000 as expenses. Kehta sold 900 shirts at Rs. 500 each. His selling expenses amounted to ` 15,000. Find the value of closing inventory.
A. Rs. 42,000
B. Rs. 43,500
C. Rs. 40,000
D. Rs. 45,000
Q. 36 P & Q entered into a joint venture. P purchased 5,000 units of goods at Rs. 30 each. Q sold Rs. 4,800 units at Rs. 50 each. The remaining goods were taken over by Q at a value of Rs. 5,000. P is allowed a commission of 2% on purchased and Q is allowed a commission of 1% on sales. Find the share of Q in the profit of joint venture.
A. Rs. 46,300
B. Rs. 44,800
C. Rs. 50,000
D. Rs. 45,000
Q. 37 Mukes and Vimal entered into a joint Venture. Mukesh purchased goods for Rs. 36,000 and paid Rs. 39,00 as expenses. Vimal purchased goods for Rs. 17,000 and paid Rs. 3,000 as expenses. Entire goods were sold for Rs. 65,000. They share profits and losses in the ratio of 2:1 the final remittance to Mukesh will be :
A. Rs. 43,300
B. Rs. 40,000
C. Rs. 50,000
D. Rs. 65,000
Q. 38 Under sales on return or approval basis, the ownership of goods is passed only
A. When the retailer gives his approval
B. If the goods are not returned within the specified period.
C. Both (a) & (b)
D. None of the above
Q. 39 Goods were sent to a customer on sale or Return basis at cost +30%. The invoice price is Rs. 6,500. At the end of the year the market value of the goods is 5% less than the cost. Closing inventory is valued at
A. Rs. 5,000
B. Rs. 4,750
C. Rs. 4,800
D. Rs. 6,170
Q. 40 Guarantees given in respect of third parties will be considered as :
A. Contingent liability
B. Current liability
C. Contingent asset
D. Provision
Q. 41 In the absence of any provision in the partnership agreement, profit and losses are shared
A. In the ratio of capital
B. Equally
C. In the ratio of loans given by them to the firm
D. None of the above
Q. 42 Wages paid for Installation of Machinery was wrongly Debited to wages A/c Error is :
A. Commission Error
B. Principal Error
C. Compensatory Error
D. Partial omission
Q. 43 R,S and T are partners sharing profits and losses in the proportion of 3:2:1. S retired and the new profit sharing ratio between R and T is 3:1 and the Reserve of Rs. 15,000 is divided among the partners in the ratio of. :
A. Rs. 2,500 : Rs. 5,000 : Rs. 7,500
B. Rs. 5,000 : Rs. 2,500 : Rs. 7,500
C. Rs. 7,500 : Rs. 5,000 : Rs. 2,500
D. Rs. 2,500 : Rs. 7,500 : Rs. 5,000
Q. 44 Calculate the value of goodwill of a firm under capitalization Method.
Capital Employed in the firm Rs. 6,00,000
Reasonable Rate of Return 14%
Average profit : 1,12,000
A. Rs. 2,10,000
B. Rs. 2,00,000
C. Rs. 2,80,000
D. Rs. 2,40,000
Q. 45 At the time of retirement of a partner, firm gets ___ from the insurance company against the joint life Policy taken jointly for all the partners.
A. Policy Amount.
B. Surrender Value
C. Policy Value for the retiring partner and surrender Value for the rest.
D. Surrender value for all the partners.
Q. 46 Goodwill brought in by incoming partner in cash for joining in a partnership firm is taken away by the old partners in their ____ ratio
A. Capital
B. New profit Sharing
C. Sacrificing
D. Old profit Sharing
Q. 47 Jain and Deepak are partners in a firm with no partnership agreement. The profit for the year was Rs. 14,200. Deepak claimed interest @12% p.a. on the loan of Rs. 70,000 given to the firm. Calculate the share of Jain and Deepak in the profit of the firm. :
A. Rs. 5000 & Rs. 9,200
B. Rs. 7,100 & Rs. 7,100
C. Rs. 2,100 & Rs. 12,100
D. None
Q. 48 Credit purchase of Machinery should be recorded in :
A. Purchase Book
B. Cash Book
C. Petty Cash Book
D. Journal proper
Q. 49 On admission of a partner unrecorded investments worth Rs. 5,000 and unrecorded liability toward suppliers for Rs. 1,500 will be recorded in :
A. Revaluation A/c
B. Capital A/c
C. Realisation A/c
D. None of the three
Q. 50 A Company issued 30,000 shares of Rs. 10 each, payable as Rs. 3 on application, Rs. 3 on allotment and Rs. 4 on call. Applications were received for 50,000 shares. Allotment was made on a pro-rata basis. Excess application money was refunded. Mr. X, a holder of 100 shares, failed to pay the call money. His shares were forfeited. The above transactions are related to :
A. Over subscription
B. Pro – rata allotment
C. Forfeiture
D. All of the Above
Q. 51 Bajaj Ltd. Issued 4,000 shares of Rs. 10 each at a premium of 20%, payable as Rs. 5 on application (including premium), Rs. 3 on allotment and Rs. 4 on call. Mr. Q, a holder of 100 shares, failed to pay the allotment and call money. His shares were forfeited. The amount to be credited to Forfeited Shares A/c will be :
A. Rs. 500
B. Rs. 400
C. Rs. 1000
D. Rs. 300
Q. 52 A Company forfeited 100 shares of Rs. 10 each, on which Rs. 5 per share was already paid up. Out of them 70 shares are reissued at Rs. 7 per share as fully paid up. The amount to be transferred to the Capital Reserve A/c will be :
A. Rs. 350
B. Rs. 490
C. Rs. 140
D. Rs. 150
Q. 53 Discount on issue of debentures is a :
A. Revenue loss to be charged in the year of issue
B. Capital loss to be written off from capital reserve
C. Capital loss to be written off over the tenure of the debentures
D. Capital loss to be shown as goodwill
Q. 54 Preference shares amounting to Rs. 3,00,000 are redeemed at a premium of 5% by issue of equity shares amounting to Rs. 2,00,000 at a premium of 3%. The amount to be transferred to Capital Redemption Reserve:
A. Rs. 1,00,000
B. Rs. 1,20,000
C. Rs. 2,10,000
D. None
Q. 55 LT Ltd. Purchased land and building from Ab Ltd. For a book value of Rs. 22,00,000. The consideration was paid by issue of 12% Debentures of Rs. 100 each at a premium of 10% The Debentures A/C is credited by : :
A. Rs. 22,00,000
B. Rs. 20,00,000
C. Rs. 24,20,000
D. Rs. 25,20,000
Q. 56 Which of the followings statements is false :
A. Equity is owner’s stake and the debenture is a debt
B. Rate of interest on debentures is fixed
C. Debenture holders get preferential treatment over the equity holders at the time of liquidation
D. Interest on debentures
Q. 57 The purpose of accommodation bill is :
A. To finance actual purchase or sale of goods
B. To facilitate trade transmission
C. When both parties are in need
D. None of the above
Q. 58 On 15.02.17 X draws a bill on Y for 30 days. Y accepted the bill on 18.02.17. The maturity date of the bill will be :
A. 18.03.17
B. 21.03.17
C. 23.03.17
D. None of the above
Q. 59 The part of share capital which can be called up only on the liquidation of a company is called
A. Authorized capital
B. Called up capital
C. Capital reserve
D. Reserve capital
Q. 60 A company issued 15,000 shares of Rs. 10 each. Called up value per share is Rs. 8 A holder of 250 shares paid Rs. 2 per share only. On forfeiture of his shares, share Capital A/c is debited by :
A. Rs. 2,500
B. Rs. 2,000
C. Rs. 500
D. None of these
Part B – Mercantile Laws
Q. 61 The offer can be lapsed in case of :
A. Revocation
B. by rejection of offered
C. Counter offer
D. All of the Above
Q. 62 An offer open for acceptance over a period of time is :
A. Void offer
B. Counter offer
C. Implied offer
D. Standing Offer
Q. 63 A specific proposal is :
A. A proposal made to public at large
B. A proposal made to a particular person
C. A proposal made to anyone
D. A proposal open for over a period of time
Q. 64 A lunatic person is :
A. A minor
B. An insolvent person
C. An alien enemy
D. An unsound mind person
Q. 65 Threat to commit suicide is :
A. Undue influence
B. Fraud
C. Coercion
D. Misrepresentation
Q. 66 Where both the parties to an agreement under a mistake as to a matter of fact, which is essential to the agreement, the agreement is :
A. Valid
B. Void
C. Voidable
D. Illegal
Q. 67 If a consent of a party is not free, then the contract is :
A. Valid
B. Void
C. Voidable
D. Illegal
Q. 68 Mere silence as to facts likely to affect the desire of the party does not amount to :
A. Coercion
B. Fraud
C. Mistake
D. Misrepresentation
Q. 69 A contract formed out of love and affection is valid, if it is :
A. Expressed in writing only
B. Written and registered under law
C. Oral promise
D. Contractual promise
Q. 70 Right in rem means
A. Right to make a contract with one party
B. Right to sue a particular person
C. Right available to a person against whole world
D. None of the above
Q. 71 Executory contract is
A. Where all parties to a contractor perform their obligations
B. Where something remains to be done by the parties
C. No one is performed
D. None of the above
Q. 72 The contract business charged under mutual agreement through:
A. Death
B. Insolvency
C. Novation
D. Impossibility of performance
Q. 73 ‘A’ owes Rs. 25,000 to ‘B’ pays Rs. 22,000 in full and final settlement of account. This is :
A. Novation
B. Alteration
C. Remission
D. Cancellation
Q. 74 ‘X’ agrees ‘Y’ to work from 1-4-17. On 27-3-17, he writes a letter to ; Y’ that there is no need to join in work. It is a _______ type of breach. :
A. Actual
B. Anticipatory
C. Substitution
D. Rescission
Q. 75 Supervening impossibility is an :
A. Impossibility occurs after entering into contract
B. Impossibility occurs before entering into contract
C. Impossibility occurs at the time of entering into contract
D. None of the above
Q. 76 Which of the following statements is false regarding rescission :
A. Rescission can be made through mutual agreement
B. When one party makes a default in performance, the other party can rescind the contract.
C. In case of voidable contract, the aggrieved party can cancel the contract
D. None of the above
Q. 77 Contingent contract is always :
A. Valid
B. Void
C. Voidable
D. Illegal
Q. 78 ‘A’ delivered goods to B’s warehouse by mistake. B’ used the goods. A’ asks B’ for the price of the goods. This is :
A. Void Contract
B. Quasi Contract
C. Contingent contract
D. None of these
Q. 79 Under the sale of goods Act, 1930 property means :
A. Transfer of possession
B. Ownership
C. Delivery of goods
D. All of these
Q. 80 Breach of Warranty gives rise to :
A. Claim damages
B. Rejection of goods
C. Repudiation of contract
D. None of these
Q. 81 ‘P’ wants to sell his car, so he appoints ‘Q’ an auctioneer as his agent to sell the car. ‘R’ made the highest bid at the time of the fall of the hammer. ‘Q’ says to R for signing of cheque otherwise ownership shall not be transferred to him. ‘R’ sings the cheque which is subsequently dishonored . In this case the ownership
A. Is transferred with fall of hammer
B. Is not transferred as cheque is dishonored
C. Is transferred if ‘R’ sings another cheque
D. None of the above
Q. 82 Risk follows from seller to buyer when :
A. Possession of goods is given
B. Buyer paid the price
C. Ownership passes to the Buyer
D. All of the above
Q. 83 If there is a contract for sale of specific goods under deliverable state, the ownership will passes :
A. When goods are delivered to the buyer
B. When payment is done
C. When contract is made
D. None of these
Q. 84 Bill of lading is issued by:
A. Shipping Company
B. Transporter
C. Railway Administration
D. Mercantile agent
Q. 85 Which of the following is not a mode of delivery :
A. Constructive
B. Structured
C. Actual
D. Symbolic
Q. 86 An unpaid seller has rights against :
A. On goods
B. On buyer
C. on both goods and buyer
D. None of these
Q. 87 When goods are delivered to the buyer on approval or on sale or return basis, the property in the goods transferred to the buyer when :
A. The buyer retains the goods beyond stipulated time
B. The buyer signifies his approval
C. The buyer does any other act adopting the transaction
D. All of these
Q. 88 ‘P’ for sale of a property appoints ‘Q’ as a mediator with a commission of Rs. 20,000. ‘Q’ found the customer ‘R’ who paid Rs. 50,000 as an advance to ‘Q’. Later ‘P’ refuses to sell the property. Can ‘R’ claim advance back from ‘Q’ :
A. Yes ‘R’ can claim his amount from ‘Q’
B. No ‘R’ cannot claim any amount from ‘Q’
C. Whole the contract is void
D. None of these
Q. 89 ‘P’ sold 100 refrigerators to ‘Q’ They are kept in the warehouse. The seller (P) told the warehouse keeper to keep the goods on behalf of ‘Q’. This is :
A. Structural
B. Constructive
C. Symbolic
D. Actual
Q. 90 Auction sale is completed on
A. When bid is made
B. Fall of hammer
C. When auction is started
D. None of the above
Q. 91 Where there is no provision for the duration of partnership, then it is known as :
A. Particular partnership
B. Partnership at will
C. Fixed term partnership
D. None of the above
Q. 92 Every partner is liable in the firm :
A. Jointly
B. Severally
C. Either Jointly or Severally
D. Both Jointly & Severally
Q. 93 A minor Joined for benefits of partnership has a right to :
A. Share the profits
B. Inspect the books of firm
C. Sue for his share of profits
D. All of the above
Q. 94 The partnership will be compulsorily dissolved in case of :
A. All partners become insolvent
B. Death of a partner
C. Retirement of a partner
D. Admission of a partner
Q. 95 In the absence of any agreement, partners will share the profits in :
A. Capital ratio
B. As per their convenience
C. Equal Ratio
D. All of the above
Q. 96 A, B, C are active partners in the firm. ‘A’ retires without giving public notice of his retirement. ‘B’ and ‘C’ carry on the business of the firm, and incur liability. In this case :
A. ‘A’ is also liable
B. Only ‘B’ & ‘C’ are liable
C. Firm will be deemed to be dissolved
D. Only ‘A’ is liable
Q. 97 In unregistered firm, a partner can sue for :
A. Goodwill
B. Share in Profits
C. Dissolution of the firm
D. None of the above
Q. 98 Which of the following statements is false :
A. A partner who takes a fixed salary in lieu of share in profits may be a partner.
B. A partner who expresses (or) by his action intimates others that he is a partner may be a partner.
C. It is essential to have agreement to share profits and losses.
D. A partner who does not participate in management has no liabilities.
Q. 99 The partner of a firm agrees to share profits with an outsider but no other rights of the firm. Such outsider is called :
A. Nominal partner
B. Dormant partner
C. Sub-partner
D. Partner in profits only
Q. 100 Sanju and Manju are tailors. Manju takes all the profits and gives wages to Sanju. The relationship between Sanju and Manju is :
A. Partner
B. Joint Owners
C. Master & Servant
D. Agent & Principal
Session – II
Part A – General Economics
Q. 101 “Science requires art; art requires science”, who said this statement?
A. Keynes
B. Cossa
C. Robbins
D. Pigou
Q. 102 The producer’s demand for a factor of production is governed by the …… of that factor.
A. Price
B. Marginal Productivity
C. Availability
D. Profitability
Q. 103 Demand for a commodity refers to……….
A. Amount of quantity demanded at a certain price during any particular period of time
B. Desiree for the commodity
C. Quantity demanded of that commodity
D. Need for the commodity
Q. 104 What is the reason for the downward slope of the demand curve towards right?
A. Marginal Utility of the commodity decreases
B. Substitution effect when price of commodity decreases
C. Income effect when price of commodity decreases
D. All of the above
Q. 105 If the price of the petrol increases, the demand for the automobiles decreases, then the petrol and automobiles are?
A. Perfect substitutes
B. Substitutes
C. Perfect Complementary
D. Complementary
Q. 106 A college of bachelor degree raised their fees by Rs. 500 in order to increase their total revenues. But actually their total revenue had fallen. Then the demand for a bachelor degree is……
A. Relatively elastic
B. Relatively inelastic
C. Unit elastic
D. Perfectly elastic
Q. 107 Demand for electricity is elastic because:
A. It has alternative uses
B. It has number of close substitutes
C. It is very expensive
D. Its supply is erratic
Q. 108 The demand of commodity for which a consumer spends more percentage of his income is
A. More elastic
B. Less elastic
C. Unity
D. Perfectly elastic
Q. 109 The supply of a good refers to:
A. Actual production of the goods
B. Total existing stock of the goods
C. Stock available for sale
D. Amount of the good offered for sale at a particular price per unit of time
Q. 110 Consumer surplus can’t be measured in terms of money because:
(i) Marginal utility of money changes as purchases are made
(ii) The stock of money with the consumer decreases
(iii) Income of the consumer changes
(iv) Price of the product changes
A. i & ii
B. ii & iii
C. iii & iv
D. i & iv
Q. 111 In case of necessaries, the consumer surplus is
A. Zero
B. One
C. Infinity
D. Maximum
Q. 112 The consumer is in equilibrium when the following condition is satisfied:
A. (MUx ∕MUy) = (Py / Px )
B. (MUx ∕MUy) = (MUy / Px )
C. (MUy ∕MUx) = (Py / Px )
D. (MUx ∕Py) = ( MUy/ Px )
Q. 113 Internal & external economies of scale gives birth to:
A. Constant returns to scale
B. Increasing returns to scale
C. Decreasing returns to scale
D. All of the above
Q. 114 Creation of utilities in terms of goods & services is called as:
A. Marginal utility
B. Total Utility
C. Production
D. Distribution
Q. 115 __________is the produced means of production.
A. Income
B. Capital
C. Money
D. Profit
Q. 116 In which of the following markets there are no restrictions on the transactions:
A. Unregulated markets
B. Regulated markets
C. Spot market
D. Future market
Q. 117 Assume that consumer’s income and number of sellers in market for goods both fall. Based on this information we can conclude:
A. Price will decrease
B. Price will increase
C. Quantity will increase
D. Quantity will decrease
Q. 118 From the following details, find out the average variable cost of 5 units :
| Output | 0 | 1 | 2 | 3 | 4 | 5 |
| Total Cost | 1500 | 2000 | 2500 | 3000 | 4000 | 6000 |
A. Rs. 400
B. Rs. 900
C. Rs. 800
D. Rs. 600
Q. 119 In short run, when output of a firm increases, its average fixed cost:
A. Remains constant
B. Decreases
C. Increases
D. First decreases then increases
Q. 120 The cost of one thing in terms of the alternative given up is known as :
A. Production cost
B. Physical cost
C. Real cost
D. Opportunity cost
Q. 121 Which of the following is an example of an economic cost:
A. Interest paid to the bank on the short term loan taken
B. Cost incurred on the purchase of raw materials.
C. Wages paid to labourers
D. All of these
Q. 122 Monopoly would usually generate ____ when compared to perfect competition market:
A. Higher quantity at higher price
B. Lower quantity at lower price
C. Higher quantity at lower price
D. Lower quantity at higher price
Q. 123 Among the following markets which has high control over the price:
A. Imperfect competition
B. Perfect competition
C. Both (a) & (b)
D. Monopoly
Q. 124 Which of the following is a feature of under developed economy :
A. Service sector occupies large proportion
B. Dependence of foreign aid is absent
C. Income inequalities are wide spread
D. Favorable balance of payments
Q. 125 NSSO stands for :
A. National student Survey office
B. National student securities office
C. National sample survey office
D. National statistical securities office
Q. 126 India has a poverty index of ___ according to human development report (2010).
A. 0.283
B. 0.267
C. 0.297
D. 0.381
Q. 127 Which five year plan is also known as ‘Gadgil yojana’ :
A. 2nd Five year plan
B. 3rd Five year plan
C. 4th Five year plan
D. 5th Five year plan
Q. 128 _______ is a national waste of human energy.
A. Voluntary Employment
B. Fractional Employment
C. Casual Employment
D. Structural Employment
Q. 129 India’s network is the second largest network in the world with the tele density of ____ %
A. 75.23
B. 87.66
C. 67.34
D. 65.28
Q. 130 NLM was recast into ____ in 2009
A. Technology mission
B. Education for all
C. Saakshar Bharat
D. Rashtriya uchchatar Shiksha Abhiyan
Q. 131 Right of children to free and compulsory education Act (RTE Act ) 2009 has made free education for all children between the age of ___ a fundamental right.
A. 5 and 14 years
B. 6 and 14 years
C. 7 and 14 years
D. 8 and 14 years
Q. 132 In which year the Government of India constituted a TRC (Tax Reforms Committee)
A. 1990
B. 1991
C. 1988
D. 1966
Q. 133 Which of the following is correct:
A. Fiscal deficit – borrowing & other liabilities gives to Budget deficit
B. Budget deficit – borrowing & other liabilities gives to fiscal deficit
C. Budget deficit + fiscal deficit give to borrowing and other liabilities.
D. None of the above
Q. 134 Which of the following is incorrect
A. Sum of budget deficit minus borrowings of loans & other liabilities gives fiscal deficit
B. If total receipts equals total expenditure, it is called Balanced Budget
C. If total receipts are greater than total expenditure, it is called Surplus Budget
D. Budget deficit is the difference between total receipts and total expenditure
Q. 135 Important tools of privatization are :
A. Leasing & contracting
B. Franchising, leasing & contracting
C. Franchising, leasing, contracting & divestiture
D. Franchising, leasing, contracting, selling & divestiture.
Q. 136 GATT was replaced by WTO in the year :
A. 1st January, 1995
B. 1st January, 1991
C. 1st April, 1995
D. 1st May, 1995
Q. 137 Which of the following is not a function of IMF
A. It provides medium term and long term loans to its member countries
B. It provides machinery for the orderly adjustment of exchanges rates
C. It is a sort of lending institution in foreign exchange
D. It monitors economic and financial development of the member countries
Q. 138 Which of the following bank is also known as international Bank for Reconstruction and Development :
A. World Bank
B. Asian Development Bank
C. RBI
D. Central Bank
Q. 139 Fiscal policy affects balance of payments by:
A. Affecting capital account
B. Affecting current account
C. Affecting both capital & Current account
D. None of the above
Q. 140 Which measures has been taken in India to promote Globalization
A. Import Liberalization
B. Convertibility of rupee
C. Encouragement to foreign investment
D. All of the above
Q. 141 Which of the following is a best Indicator of economic development :
A. Agriculture
B. Transport
C. Per capita income
D. Gross domestic production
Q. 142 The national income of India is estimated by the :
A. NCAER
B. Indian Statistical Institute
C. Planning Commission
D. Central Statistical Office
Q. 143 Pensions earned by retired persons are excluded in the calculation of :
A. National Income
B. Net National Product
C. National Product
D. GDP
Q. 144 Which of the following statements is false?
A. During inflation, lenders suffer loss and borrowers benefit out.
B. During inflation, nominal (face) value of wages decreases while real value of wages increases
C. When money supply increases it leads to inflation in the economy
D. During inflation, aggregate demand is excess and aggregate supply is relatively less and purchasing capacity of consumers is low.
Q. 145 Fiscal policy is concerned with:
A. Non-banking, financial institution
B. Money and banking
C. Government expenditure, taxation and borrowings
D. None of these
Q. 146 During the inflation to control the credit RBI must ______________ :
A. Increase CRR and decrease bank rate
B. Decrease CRR and increase bank rate
C. Increase CRR and increase bank rate
D. Decrease CRR and decrease bank rate
Q. 147 Monetary policy in India is also called by the name of:
A. RBI’s policy on money & currency
B. Central Bank’s economic policy
C. Credit policy of RBI
D. RBI’s policy on money matters
Q. 148 The capital consumed by an economy or a firm in the production process is known as:
A. Capital loss
B. Production Cost
C. Death-weight loss
D. Depreciation
Q. 149 Monetary policy in India is implemented by ____________ :
A. SBI
B. RBI
C. Ministry of finance
D. Planning commission
Q. 150 Which of the following is a function of commercial bank:
A. Advisor to State Government
B. Creation of credit
C. Publication of data pertaining to money
D. Credit control
Part B – Quantitative Aptitude
Q. 151 The ratio of the number of five rupee coins to the number of ten rupee coins is 8 : 15. If the total value of five rupee coins is 360, then the no. of ten rupee coins is __________ :
A. 72
B. 60
C. 150
D. 135
Q. 152 If 1/2 ,1/3 ,1/5, 1/x are in proportion then x =
A. 15/2
B. 3/15
C. 2/15
D. 1/15
Q. 153 If u5x = v5y = w5z and u2 = vw then xy + zx – 2yz = __________:
A. 0
B. 1
C. 2
D. None of these
Q. 154 If log3 [log4 (log2X)] = 0 then X =
A. 4
B. 8
C. 16
D. 32
Q. 155 If log((x-y)/2) = ½logx + logy) then x2 + y2 = ___________
A. 6xy
B. 2xy
C. 3x²y²
D. 4x²y²
Q. 156 If the sum of two numbers is 13 and the sum of their squares is 85 then the numbers are:
A. 6,7
B. 4,9
C. 10,3
D. 5,8
Q. 157 The difference between the roots of the equation x² -7x-9=0 is ________:
A. 7
B. √85
C. 9
D. 2√85
Q. 158 The roots of the cubic equation x³ + 7x² – 21x – 27 = 0:
A. -1, 3, 9
B. 1, -3, 9
C. -1, 3, -9
D. -1, -3, 9
Q. 159 The line 3x + 2y = 6 intersects the line 3x – y = 12 in _______________ quadrant:
A. 1st
B. 2nd
C. 3rd
D. 4th
Q. 160 If the line joining the points (6, 12), (x, 24) is perpendicular to line joining the points (-2, 6), (10,8). Then value of X is _________________:
A. 4
B. -4
C. 1
D. None of these
Q. 161 If the compound interest on a sum for two year at the rate 5% p.a. is Rs. 512.50 , then the principle is __________:
A. 4,000
B. 3,000
C. 5,000
D. None of these
Q. 162 Find effective rate of interest corresponding to the nominal rate of interest 7% compounded monthly is__________:
A. 7.26%
B. 7.22%
C. 7.02%
D. 7.20%
Q. 163 If nP13 : (n+1)P12 = 3 : 4 then ‘n’ is __________:
A. 13
B. 15
C. 18
D. 31
Q. 164 In how many ways that 3 commerce books, 3 computer books and 5 economics books be arranged along a row, so that books of same subjects are come together is____ :
A. 29,950
B. 25,940
C. 25,920
D. None of these
Q. 165 Find the sum of all natural numbers between 100 and 1000 which are divisible by 11 is :
A. 44,550
B. 66,770
C. 55,440
D. 33,440
Q. 166 In a class of 35 students, 16 students play football and 24 students play cricket. Assume that each one play at least one game, then number of students who play both the games is _______________:
A. 5
B. 11
C. 12
D. 17
Q. 167 if f(x)=(x+1)/(x+2) then f[f(1/x)]= ?
A. (2x+3)/(3x+5)
B. (2x+5)/(3x+2)
C. (3x+2)/(5x+3)
D. (5x+2)/(2x+3)
Q. 168
A. 2/3
B. 1/2
C. 3/4
D. None of these
Q. 169 
A. 0
B. 1
C. 2
D. 7
Q. 170 The question is as follows: If 
A. x
B. y
C. 1
D. 0
Q. 171 If x=at² and y = 2at then (dy/dx) (at t=2) = _______________ ?
A. 2
B. 4
C. 1/2
D. 1/4
Q. 172 The question is as follows: If xy =ex-y then dy/dx=
A. (2 logx)/(1 + log x)²
B. (log x)/(1 + log x)
C. (log x)/(1 + log x)²
D. None of these
Q. 173 If y = log xx then (dy/dx) = ____________ :
A. log (ex)
B. log (e/x)
C. log (x/e)
D. 1
Q. 174 ∫e^x [f(x) + f’(x)] dx = __________________ :
A. e^x . f(x) + c
B. e^x . f'(x) + c
C. f'(x)/f(x) + c
D. e^x . f(x)/f'(x) + c
Q. 175 ∫x.e^x² dx = __________________ :
A. 2 . e^x² + c
B. (1/3)e^x² + c
C. (1/2)e^x² + c
D. None of these
Q. 176 Frequency density corresponding to a class interval is the ratio of __________:
A. Class frequency to the class length
B. Class frequency to the total frequency
C. Class length to the class frequency
D. Class length to the cumulative frequency
Q. 177 Stub of a table is the:
A. Right part of the table describing the columns
B. Left part to the table describing the columns
C. Right part of the table describing the row
D. Left part of the table describing the rows
Q. 178 Mean of 7, 9, 12, x, 4, 11 & 5 is 9. Find the missing observation:
A. 13
B. 15
C. 12
D. None of these
Q. 179 If all the frequencies are equal than which will doesn’t exist:
A. Mean
B. Median
C. Mode
D. None of these
Q. 180 ____________ is the reciprocal of the AM of reciprocal of observations:
A. HM
B. GM
C. Both
D. None of these
Q. 181 Mean deviation is least when deviations are taken from:
A. Mean
B. Median
C. Mode
D. None of these
Q. 182 If r = 0.6 then the coefficient of non-determination is:
A. 0.4
B. -0.6
C. 0.36
D. 0.64
Q. 183 If there is a constant increase in the series then the obtained graph is:
A. Convex
B. Concave
C. Parabola
D. Straight Line from left to right
Q. 184 The correlation coefficient is the _____________ of the two regression coefficients byx and bxy:
A. AM
B. GM
C. HM
D. None of these
Q. 185 Regression coefficients are independent of ___________:
A. Change of origin
B. Change of scale
C. Both (a) and (b)
D. None of these
Q. 186 5y = 9x – 22 & 20x = 9y + 350 are two regression lines. Find the correlation coefficient between x & y:
A. 0.9
B. 0.1
C. -0.9
D. -0.1
Q. 187 For the events A & B if P (A)= 1/2 , P(B)= 1/3 and P(A∩B)= 1/4 then P(A/B) =
A. 1/2
B. 1/6
C. 2/3
D. 3/4
Q. 188 If A & B are two mutually exclusive events such that P (A ∪ B ) = 2/3 , P (A) = 2/5, then P (B) :
A. 4/15
B. 4/9
C. 5/9
D. 7/15
Q. 189 If a brother and a sister are applied for 2 vacancies in the same post. The probability that brother will select is 1/7 and that of sister is 1/5, then the probability that
(i) Both will select
(ii) Only one will select, (iii) None of them will select :
A. 1/35, 10/35, 24/35
B. 24/35, 7/35, 14/35
C. 3/35, 24/35, 11/35
D. 24/35, 6/35, 20/35
Q. 190 The distribution of demand is as follows: the mean is given by:
| Demand | 5 | 6 | 7 | 8 | 9 | 10 |
| Probability | 0.05 | 0.1 | 0.3 | 0.4 | 0.1 | 0.05 |
A. 7.55
B. 7.85
C. 1.25
D. 8.35
Q. 191 In ___________ distribution, mean = variance:
A. Binomial
B. Poisson
C. Normal
D. None of these
Q. 192 An example of a bi-parametric discrete probability distribution is:
A. Binomial distribution
B. Poisson distribution
C. Normal distribution
D. Both (a) & (b)
Q. 193 In normal distribution 95% observations lies between _________ & __________:
A. (μ-2σ , μ+2σ)
B. (μ-3σ , μ+3σ)
C. (μ-1.96σ , μ+1.96σ)
D. (μ-2.58σ , μ+2.58σ)
Q. 194 Sampling error is ____________ proportional to the square root of the number of items in the sample:
A. Inversely
B. Directly
C. Equally
D. None of these
Q. 195 Parameter is a characteristic of:
A. Population
B. Sample
C. Both (a) & (b)
D. (a) or (b)
Q. 196 Sampling frame is:
A. List of sampling units in the population
B. List of voters
C. List of Random Numbers
D. None of these
Q. 197 For knowing consumers price index number we want to collect data from:
A. Retail shop prices
B. Wholesale shop prices
C. Fair prices
D. Government depots
Q. 198 The circular test is an extension of:
A. The time reversal test
B. The factor reversal test
C. The unit test
D. None of these
Q. 199 Fisher’s ideal index number is:
A. The arithmetic mean of Laspeyre’s and Passsche’s index
B. The median of Laspeyre’s and Passche’s index
C. The mode of Laspeyre’s and Passche’s index
D. None of these
Q. 200 Price relative is equal to:
A. ( Price in the base year / Price in the given year ) x 100
B. ( Price in the given year / Price in the base year ) x 100
C. Price in the given year x 100
D. Price in the base year x 100
| Answer Sheet | ||||||||||
| Question | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 |
| Answer | C | D | C | B | C | D | D | D | C | B |
| Question | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 |
| Answer | B | A | B | D | C | B | C | A | C | D |
| Question | 21 | 22 | 23 | 24 | 25 | 26 | 27 | 28 | 29 | 30 |
| Answer | A | D | D | A | A | C | B | A | A | C |
| Question | 31 | 32 | 33 | 34 | 35 | 36 | 37 | 38 | 39 | 40 |
| Answer | D | B | A | B | A | B | A | C | B | A |
| Question | 41 | 42 | 43 | 44 | 45 | 46 | 47 | 48 | 49 | 50 |
| Answer | B | B | C | B | B | C | A | D | A | D |
| Question | 51 | 52 | 53 | 54 | 55 | 56 | 57 | 58 | 59 | 60 |
| Answer | D | C | C | A | A | D | C | D | D | B |
| Question | 61 | 62 | 63 | 64 | 65 | 66 | 67 | 68 | 69 | 70 |
| Answer | D | D | B | D | C | B | C | B | B | C |
| Question | 71 | 72 | 73 | 74 | 75 | 76 | 77 | 78 | 79 | 80 |
| Answer | B | C | C | B | A | D | A | B | B | A |
| Question | 81 | 82 | 83 | 84 | 85 | 86 | 87 | 88 | 89 | 90 |
| Answer | A | C | C | A | B | C | D | A | B | B |
| Question | 91 | 92 | 93 | 94 | 95 | 96 | 97 | 98 | 99 | 100 |
| Answer | B | D | A | A | C | A | C | D | C | C |
| Question | 101 | 102 | 103 | 104 | 105 | 106 | 107 | 108 | 109 | 110 |
| Answer | B | A | A | D | D | A | A | A | D | A |
| Question | 111 | 112 | 113 | 114 | 115 | 116 | 117 | 118 | 119 | 120 |
| Answer | C | C | B | C | B | A | D | B | B | D |
| Question | 121 | 122 | 123 | 124 | 125 | 126 | 127 | 128 | 129 | 130 |
| Answer | D | D | D | C | C | A | C | A | A | C |
| Question | 131 | 132 | 133 | 134 | 135 | 136 | 137 | 138 | 139 | 140 |
| Answer | B | B | A | A | C | A | A | A | C | D |
| Question | 141 | 142 | 143 | 144 | 145 | 146 | 147 | 148 | 149 | 150 |
| Answer | C | D | A | B | C | C | C | D | B | B |
| Question | 151 | 152 | 153 | 154 | 155 | 156 | 157 | 158 | 159 | 160 |
| Answer | D | A | A | C | A | A | B | C | D | A |
| Question | 161 | 162 | 163 | 164 | 165 | 166 | 167 | 168 | 169 | 170 |
| Answer | C | B | B | C | A | A | A | A | C | B |
| Question | 171 | 172 | 173 | 174 | 175 | 176 | 177 | 178 | 179 | 180 |
| Answer | C | C | A | A | C | A | D | B | C | A |
| Question | 181 | 182 | 183 | 184 | 185 | 186 | 187 | 188 | 189 | 190 |
| Answer | B | D | D | B | A | A | D | A | A | A |
| Question | 191 | 192 | 193 | 194 | 195 | 196 | 197 | 198 | 199 | 200 |
| Answer | B | A | C | A | A | A | A | A | D | A |
