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v4vhse » Career Corner » Open Stage » Commerce Multiple Choice Questions Part III

Commerce Multiple Choice Questions Part III

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1default Commerce Multiple Choice Questions Part III on Thu Dec 26, 2013 7:39 pm

vivaradoshi


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1. Insurance is based on the principle of:
            A. Co-operation
            B. Democracy
            C. Equality
            D. Welfare
2. SWOT is used for....
            A. Planning
            B Control
C. Coordination
            D. Organizing

3. According to pecking order ....... is the last resort for finance by a firm.
            A. Equity share
            B. Retained earnings
            C. Debt
            D. Preference share
4. In the context of Standard Costing, Basic standard is established for:
            (A) short period
            (B) current period
            (C) indefinite period
            (D) pre-defined period

5. The main objective of control function is....
            A. Oversee work
            B. Punish defaulters
            C. Remedial action
            D. Meet targets

6. The process of accounting rightly starts from
            A. Identification of relevant business transaction
            B. Documenting and filing Source Documents
            C. Journalizing
            D. Posting

7. Bottom- line growth refers to growth in:
            (A) Sales
            (B) Turnover
            (C) Assets
            (D) Profit

8. CK Prahlad and Gary Hamel are associated with
                A. Core Competency Theory
            B. Scenario Management
            C. Skunk works
            D. Succession planning

9. Black-Scholes formula to value the call option is based on certain assumptions.  They include:
            A. only European options are considered
            B. there is no transaction cost
            C. the share pays no dividend
            D. all of the above
10.The cost of petrol for sales van when used for carrying factory employees to an orientation class on working of a new machinery to be installed in future is part of
            A. Prime cost
            B. Factory Expenses
            C. Office Expenses
            D. Selling and Distribution Expenses
            E. Research and Development Expense

11. Which of the following statement(s) are not true about a Purchase Day Book?
            A. Purchase Day Book is a book of original entry
            B. All purchases of goods are recorded in Purchase Day Book, excluding      

                  cash   Purchase
            C. All individual entries are individually posted to Purchase Ledger from

                   purchase   day book
            D. All individual entries are individually posted to Purchase Account from  

                  Purchase Day Book
11. Depreciation on fixed asset is charged every year against profit of that  
        Financial year. This is based on
            A. Going concern concept
            B. Accounting Period or Periodicity concept
            C. Matching principle
            D. None of the above

12. A new machinery in place of old equipment due to technological changes is
       termed as:
            A. Balancing
            B. Modernisation
            C. Replacement
            D. Expansion

 
13. Current assets are financed normally by:
            (A) Current liabilities only
(B) Long-term liabilities only
(C) A mix of current and long-term liabilities
(D) Owner's fund only
14. If NPV is positive, the IRR will be
            (A) Positive

(B) K = R
(C) K < R

(D) None of the above
15. CSR % as per Indian Companies Act 2013
            A. 3 %
            B. 2%
            C. 1%
            D. 4%

16. .Decrease in the value of intangible asset like copyright, patent etc are known as
            (a) Depreciation
            (b) Amortization
            (c) Exhaustion
            (d) Fluctuation

17. Capital Budgeting is------------
            A. Operative Decision
            B. Administrative Decision
            C. Strategic Decision
            D. All the above

18. On dissolution of partnership firm, the assets taken over by a partner
            A. Debited to his capital account in book value
            B. Credited to his capital account on book value
            C. Debited to capital account on agreed value
            D. Credited to his capital account on agreed value

19. Return of Income must be furnished on or before the due date as a part of
            A) Tax Planning
            B)Tax Avoidance
            C)Tax Management
            D)Tax Evasion

20. The debt once accounted as bad debt, recovered after 2 years is
            A. Direct Income
            B. Miscellaneous Income
            C. Personal Income
            D. None of the above


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