DU MCom

Topic:- DU_J19_MCOM

1) The accounting department of a manufacturing company is an example of [Question ID = 24719]

1. Cost Centre [Option ID = 38871]

2. Profit Centre [Option ID = 38872]
3. Investment Centre [Option ID = 38873]
4. Contribution Centre [Option ID = 38874]

Correct Answer :-
Cost Centre [Option ID = 38871]

2) Which of the following is incorrect with respect to coefficient of correlation

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[Question ID = 24680]

1. It is the sum of two regression coefficients [Option ID = 38718]

2. It can be zero [Option ID = 38717]
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3. It can be positive [Option ID = 38715]
4. It can be negative [Option ID = 38716]

Correct Answer :-
uf

It can be positive [Option ID = 38715]

Ed

3) Which of the following is most appropriate for marginal rate of technical substitution of L for K
(MRTSLK )

[Question ID = 24653]

1. The amount of K a firm increases by giving up amount of L [Option ID = 38610]

2. The amount of K that can be substituted for L [Option ID = 38607]
3. The amount of K that firm can give up by increasing the amount of L used by one unit and still remain on same
isoquant. [Option ID = 38609]
4. The amount of L that can be substituted for K [Option ID = 38608]

Correct Answer :-
The amount of K that can be substituted for L [Option ID = 38607]

4) Which of the following is not true for Cobb-Douglas production function Q= ALαKβ

[Question ID = 24652]

1. α + β = 1 [Option ID = 38605]
2. α is the output elasticity of labour [Option ID = 38603]
3. Input elasticity of substitution is more than one. [Option ID = 38606]
4. β is the output elasticity of Capital [Option ID = 38604]
Correct Answer :-
α is the output elasticity of labour [Option ID = 38603]

5) Which of the following is not a preferential creditors:

[Question ID = 24701]

1. Amount due under employees state insurance act for 12 months previous to the winding up [Option ID =
38801]
2. Amount due to employee under amalgamation or reconstruction [Option ID = 38802]
3. All sum due to employee from a provident fund, pension fund, gratuity fund or any other fund maintained for
welfare of employee. [Option ID = 38799]
4. Compensation under workmen’s compensation act. [Option ID = 38800]

Correct Answer :-
All sum due to employee from a provident fund, pension fund, gratuity fund or any other fund maintained for
welfare of employee. [Option ID = 38799]

6) As per the changes in income tax proposed in the Interim Budget announced on February 1,

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2019, if an individual invests in the specified tax savings schemes of the government, the effective
income that would be tax-free in a year, would be:
ev
[Question ID = 24741]

1. Rs. 6,50,000 [Option ID = 38962]

2. Rs. 5,00,000 [Option ID = 38960]
3. Rs. 3,00,000 [Option ID = 38959]
uf

4. Rs. 6,00,000 [Option ID = 38961]

Correct Answer :-
Ed

Rs. 3,00,000 [Option ID = 38959]

7) Which form of business does not have perpetual succession [Question ID = 24746]

1. Government Company [Option ID = 38981]

2. Partnership Firm [Option ID = 38982]
3. Joint Stock Company [Option ID = 38979]
4. Limited Liability Partnership [Option ID = 38980]

Correct Answer :-
Joint Stock Company [Option ID = 38979]

8) When all inputs are increased 5% and output of commodity increases by 10%, the firm is
having-

[Question ID = 24655]

1. Increasing returns to scale [Option ID = 38615]

2. Decreasing returns to scale [Option ID = 38616]
3. Indeterminant returns to scale [Option ID = 38618]
4. Constant returns to scale [Option ID = 38617]
Correct Answer :-
Increasing returns to scale [Option ID = 38615]

9) When budget line shifts parallel towards right, which of the following statement is true?

[Question ID = 24654]

1. The price of X increases and budget increases [Option ID = 38611]

2. The price of Y increases and budget increases [Option ID = 38612]
3. The price of X and Y remain constant and the budget increases. [Option ID = 38614]
4. The price of X decreases and budget increases [Option ID = 38613]

Correct Answer :-
The price of X increases and budget increases [Option ID = 38611]

10) If company changes from offering 40 days credit to 50 days credit, Which of the following
statement is correct [Question ID = 24699]

1. Cash generated from financing activities will decrease [Option ID = 38793]

2. Cash generated from operation will decrease [Option ID = 38792]

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3. Cash generated from operation will increase [Option ID = 38791]
4. There will be no affect on cash flow [Option ID = 38794]
ev
Correct Answer :-
Cash generated from operation will increase [Option ID = 38791]

11) Raw materials are assigned to a job when [Question ID = 24711]

uf

1. Materials are purchased [Option ID = 38840]

2. Materials are issued by the materials store room. [Option ID = 38842]
Ed

3. Materials are received from the vendor [Option ID = 38841]

4. Job is sold [Option ID = 38839]

Correct Answer :-
Job is sold [Option ID = 38839]

12) Examine the two statements and chose the best option
Statement 1- Higher real wealth stimulates consumer spending and decreases the quantity of goods
and services demanded.
Statement 2- the lower interest rate stimulates the investment spending and thus increases the
quantity of goods and services demanded. [Question ID = 24667]

1. Only statement 2 is correct [Option ID = 38664]

2. Only statement 1 is correct [Option ID = 38663]
3. Both the statements are correct. [Option ID = 38665]
4. Both the statements are incorrect. [Option ID = 38666]

Correct Answer :-
Only statement 1 is correct [Option ID = 38663]

13) Find dy/dx if x/x-y = log (a/(x-y)) [Question ID = 24686]

1. x-y [Option ID = 38741]
2. 1/(x-y) [Option ID = 38740]
3. x/y [Option ID = 38739]
4. 2-(x/y) [Option ID = 38742]

Correct Answer :-
x/y [Option ID = 38739]

14) According to an investment proposal, an initial investment of Rs. 1,00,000 is expected to yield a
uniform income stream of Rs. 10,000 per annum. If money is worth 8% per annum compounded
continuously, what is the expected payback period, i.e, after what time, the initial investment will be
recovered?

[Question ID = 24692]

1. 20 years [Option ID = 38765]

2. 19 years [Option ID = 38764]
3. 21 years [Option ID = 38766]
4. 18 years [Option ID = 38763]

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Correct Answer :-
18 years [Option ID = 38763]
ev
15) Strike in a factory which stops production for a few weeks is an example of…
i. Secular trend
ii. Cyclical trend
iii. Irregular trend. [Question ID = 24676]
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1. Only iii [Option ID = 38701]

2. Only ii [Option ID = 38700]
3. Only i [Option ID = 38699]
Ed

4. i and ii but not iii [Option ID = 38702]

Correct Answer :-
Only i [Option ID = 38699]

16) A fixed asset originally acquired for Rs. 20,000 is replaced by a new asset costing Rs. 50,000.
But the estimated cost of replacement of the original asset is Rs. 30,000. Hence, the capital charge
equals— [Question ID = 24705]

1. Rs. 50,000 [Option ID = 38816]

2. Rs. 20,000 [Option ID = 38815]
3. Rs. 30,000. [Option ID = 38818]
4. Rs. 40,000 [Option ID = 38817]

Correct Answer :-
Rs. 20,000 [Option ID = 38815]

17) In the following problem, find y subject to the given condition

dy/dx = 1/(2√x ) ; given that y = 1 when x = 1 [Question ID = 24689]

1. 0 [Option ID = 38754]
2. 1 [Option ID = 38751]
3. 1/√x [Option ID = 38753]
4. √x [Option ID = 38752]

Correct Answer :-
1 [Option ID = 38751]

18) which of the following most appropriately describes classical theory of management: [Question
ID = 24729]

1. everyone has desire to be efficient [Option ID = 38912]

2. there is only one best of doing the job [Option ID = 38913]
3. all of these [Option ID = 38914]
4. money is only motivator [Option ID = 38911]

Correct Answer :-
money is only motivator [Option ID = 38911]

19) The curve or locus point that shows the cost minimizing input combinations for each successive
level of output with the input/price ratio held constant is known as [Question ID = 24659]

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1. Isocost [Option ID = 38632]
2. Isoquant [Option ID = 38631]
3. Expansion path [Option ID = 38633]
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4. Ridge line [Option ID = 38634]

Correct Answer :-
Isoquant [Option ID = 38631]
uf

20) A firm’s demand function is p = 10 e-x/400, where p is the price per unit and x is quantity
demanded. Find at what level of output, is the Marginal revenue zero. [Question ID = 24687]
Ed

1. 800 [Option ID = 38746]

2. 400 [Option ID = 38744]
3. 100 [Option ID = 38743]
4. 200 [Option ID = 38745]

Correct Answer :-
100 [Option ID = 38743]

21) The standard deviation of 30 items in a data set is 5/6. If every item in the data set is multiplied
by 6 then, the variance of the data set will be: [Question ID = 24679]

1. 6 [Option ID = 38713]
2. 5 [Option ID = 38711]
3. 8 [Option ID = 38714]
4. 25 [Option ID = 38712]

Correct Answer :-
5 [Option ID = 38711]

22)
The demand D of passenger automobiles is given by D = 0.90 I1.1 p-0.7 where I is the income and p
is the price per car. Find the income elasticity of demand. [Question ID = 24688]

1. 0.4 [Option ID = 38749]

2. 1.8 [Option ID = 38750]
3. 1.1 [Option ID = 38748]
4. 0.7 [Option ID = 38747]

Correct Answer :-
0.7 [Option ID = 38747]

23) Decision tree is developed by [Question ID = 24728]

1. Talcott Parson [Option ID = 38909]

2. Vroom and Yetton [Option ID = 38907]
3. Peter Drucker [Option ID = 38910]
4. Herbert Simon [Option ID = 38908]

Correct Answer :-
Vroom and Yetton [Option ID = 38907]

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24) For the assessment year 2019-20, the income tax rate for a domestic company having total
turnover up to Rs. 250 crore in the previous year is: [Question ID = 24738]
ev
1. 25% [Option ID = 38947]
2. 35% [Option ID = 38950]
3. 28% [Option ID = 38948]
4. 30% [Option ID = 38949]
uf

Correct Answer :-
25% [Option ID = 38947]
Ed

25) A theory of exchange rate whereby a unit of any given currency should be able to buy the same
quantity of goods in all countries is called as [Question ID = 24669]

1. Purchasing power parity theory [Option ID = 38671]

2. Exchange rate parity theory [Option ID = 38673]
3. Currency rate parity theory [Option ID = 38674]
4. Interest rate parity theory [Option ID = 38672]

Correct Answer :-
Purchasing power parity theory [Option ID = 38671]

26) John Kotter is mainly known for [Question ID = 24726]

1. human resource development [Option ID = 38902]

2. motivational theory [Option ID = 38899]
3. change management [Option ID = 38901]
4. organizational development [Option ID = 38900]

Correct Answer :-
motivational theory [Option ID = 38899]
27) The setting of standards is [Question ID = 24721]

1. Preferably set at the ideal level of performance [Option ID = 38882]

2. Managerial accounting decision [Option ID = 38879]
3. Worker decision [Option ID = 38881]
4. Management decision [Option ID = 38880]

Correct Answer :-
Managerial accounting decision [Option ID = 38879]

28) In what case would the Poisson distribution be a good approximation of the binomial
distribution? [Question ID = 24673]

1. N=300, q=0.99 [Option ID = 38689]

2. N = 18, p=0.60 [Option ID = 38687]
3. N=11, p=0.30 [Option ID = 38690]
4. N=10, p=0.60 [Option ID = 38688]

Correct Answer :-
N = 18, p=0.60 [Option ID = 38687]

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29) A production manager in a manufacturing company would most likely receive [Question ID =
24722]
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1. Despatch department overhead report [Option ID = 38886]
2. Income statement [Option ID = 38884]
3. Sales report [Option ID = 38883]
4. Scrap report [Option ID = 38885]
uf

Correct Answer :-
Sales report [Option ID = 38883]
Ed

30) If the cross elasticity of demand between X and Y is 0.62, which of the following statement is
correct.

[Question ID = 24650]

1. X and Y are substitutes. [Option ID = 38595]

2. X and Y are complementary. [Option ID = 38596]
3. X and Y are not related [Option ID = 38597]
4. X and Y are giffen goods [Option ID = 38598]

Correct Answer :-
X and Y are substitutes. [Option ID = 38595]

31) the grouping of activities at the top of the organizational structure around two or more
activities is [Question ID = 24732]

1. grouping superstructure [Option ID = 38923]

2. hybrid superstructure [Option ID = 38926]
3. matrix superstructure [Option ID = 38924]
4. cross superstructure [Option ID = 38925]
Correct Answer :-
grouping superstructure [Option ID = 38923]

32) If A is a singular matrix |A| is ___________. [Question ID = 24697]

1. 0 [Option ID = 38784]
2. any positive value [Option ID = 38785]
3. 1 [Option ID = 38783]
4. any negative value [Option ID = 38786]

Correct Answer :-
1 [Option ID = 38783]

33) A person deposited Rs. 4000 in a bank at 6% compounded continuously. After 3 years, the rate
of interest was increased to 7% and after 5 more years, the rate was further increased to 8%. The
money was withdrawn at the end of 10 years. Find the amount [Question ID = 24691]

1. 7974.8 [Option ID = 38759]

2. 8346.7 [Option ID = 38760]
3. 9212.5 [Option ID = 38762]

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4. 8681.4 [Option ID = 38761]

Correct Answer :-
ev
7974.8 [Option ID = 38759]

34) ‘People’s believe that efforts would be directed toward behaviour ‘ is closely based on [Question
ID = 24725]
uf

1. Vroom’s theory [Option ID = 38895]

2. Alderfer’s theory [Option ID = 38897]
3. Porter’s theory [Option ID = 38896]
Ed

4. McClelland’s theory [Option ID = 38898]

Correct Answer :-
Vroom’s theory [Option ID = 38895]

35) A manager faces price elasticity of demand for a product X equal to -0.5. Now manager wishes
to increases sales of product X by 15%. By what percentage the price is to be lowered to achieve
this objective? [Question ID = 24651]

1. -75% [Option ID = 38602]

2. -45% [Option ID = 38601]
3. -7.5% [Option ID = 38599]
4. -30% [Option ID = 38600]

Correct Answer :-
-7.5% [Option ID = 38599]

36) A manager of an investment Centre can improve ROI by [Question ID = 24720]

1. Reducing Variable and/or controllable fixed costs. [Option ID = 38878]

2. Reducing sales [Option ID = 38876]
3. Increasing Variable costs [Option ID = 38877]
4. Increasing average assets [Option ID = 38875]

Correct Answer :-
Increasing average assets [Option ID = 38875]

37) What is the equilibrium level of income, given C= 100 + 0.75Y and I = 25 [Question ID =
24670]

1. 500 [Option ID = 38677]

2. 750 [Option ID = 38678]
3. 150 [Option ID = 38675]
4. 250 [Option ID = 38676]

Correct Answer :-
150 [Option ID = 38675]

38) Under compound interest the formula for A is given by __________. [Question ID = 24695]

1. A = Pnr/100. [Option ID = 38777]

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2. A= P (1+i). [Option ID = 38776]
3. A= P (1+ni). [Option ID = 38775]
4. A= P (1+i)n [Option ID = 38778]
ev
Correct Answer :-
A= P (1+ni). [Option ID = 38775]
uf

39) Given total product of 9 labour units is 2, 5, 9, 12, 14, 15, 15, 14, and 12 respectively. Which
unit of labour will produce zero marginal product? [Question ID = 24656]

1. 6th [Option ID = 38619]

Ed

2. 7th [Option ID = 38620]

3. 8th [Option ID = 38621]
4. 9th [Option ID = 38622]

Correct Answer :-
6th [Option ID = 38619]

40) Dave Gilboa has authored a best seller book [Question ID = 24727]

1. Refugee [Option ID = 38903]

2. The Efficiency Paradox [Option ID = 38905]
3. Factfulness [Option ID = 38904]
4. The Third Plate [Option ID = 38906]

Correct Answer :-
Refugee [Option ID = 38903]

41) Identify the correct equation [Question ID = 24672]

1. Real interest rate = Nominal interest rate – inflation rate [Option ID = 38684]
2. Real interest rate = Nominal Interest rate + Inflation rate [Option ID = 38683]
3. Real interest rate + Nominal interest rate = Inflation rate [Option ID = 38686]
4. Nominal interest rate - Real interest rate = inflation rate [Option ID = 38685]

Correct Answer :-
Real interest rate = Nominal Interest rate + Inflation rate [Option ID = 38683]

42) The marginal cost function of a product is given by MC = 2(2x + 9)-1/2 where x is no. of units
produced. Find the average cost of production for 8 units of production, if fixed cost is Rs 4.
[Question ID = 24690]

1. 0.5 [Option ID = 38755]

2. 1.0 [Option ID = 38756]
3. 2.0 [Option ID = 38758]
4. 1.5 [Option ID = 38757]

Correct Answer :-
0.5 [Option ID = 38755]

43) The additional shifts in aggregate demand that result when expansionary fiscal policy increase

er
income and thereby increasing consumer spending is explained by [Question ID = 24664]

1. Multiplier effect [Option ID = 38652]

2. Accelerator effect [Option ID = 38654]
ev
3. Crowding-out effect [Option ID = 38651]
4. Crowding in effect [Option ID = 38653]

Correct Answer :-
uf

Crowding-out effect [Option ID = 38651]

44) When a fixed Asset is obtained as a gift, the account to be credited is [Question ID = 24708]
Ed

1. Capital Reserve A/c [Option ID = 38828]

2. Goodwill A/c [Option ID = 38827]
3. General Reserve A/c [Option ID = 38830]
4. Donor’s A/c [Option ID = 38829]

Correct Answer :-
Goodwill A/c [Option ID = 38827]

45) A company has fixed costs of Rs. 1,50,000 and variable costs of Rs. 9 per unit. If sales price per
unit is Rs. 12 per unit, what is the breakeven sales in Rupees. [Question ID = 24714]

1. Rs. 2,00,000 [Option ID = 38851]

2. Rs. 6,00,000 [Option ID = 38854]
3. Rs. 4,50,000 [Option ID = 38852]
4. Rs. 4,80,000 [Option ID = 38853]

Correct Answer :-
Rs. 2,00,000 [Option ID = 38851]

46)
A firm which has significant influence over another firm but does not actually control the firm or
have a dominant influence over the firm’s actions would refer to the firm it has influence over as
[Question ID = 24698]

1. Subsidiary [Option ID = 38790]

2. Holding company [Option ID = 38788]
3. Joint Venture [Option ID = 38789]
4. Associated undertaking [Option ID = 38787]

Correct Answer :-
Associated undertaking [Option ID = 38787]

47) A firm produces two products P1 and P2, passing through two machines M1 and M2 before
completion. M1 can produce either 10 units of P1 or 15 units of P2 per hour. M2 can produce 15
units of either product per hour. Find daily production of P1 and P2, if time available is 12 hours of
machine M1 and 10 hours of M2 per day using Matrix inversion. [Question ID = 24694]

1. 60, 90 [Option ID = 38773]

2. 50, 75 [Option ID = 38772]
3. 45, 60 [Option ID = 38771]
4. 90, 120 [Option ID = 38774]

er
Correct Answer :-
45, 60 [Option ID = 38771]
ev
48) A firm can hire 10 workers at a wage rate of Rs 10, but has to pay a wage of Rs 13 to get the
11th worker. What is the marginal cost of 11th worker? [Question ID = 24648]
uf

1. Rs 33 [Option ID = 38589]
2. Rs 10.2 [Option ID = 38590]
3. Rs 113 [Option ID = 38588]
4. Rs 13 [Option ID = 38587]
Ed

Correct Answer :-
Rs 13 [Option ID = 38587]

49) In the Interim Budget announced on February 1, 2019, the government has proposed to
increase the limit for TDS applicable on interest income (from Post office/Bank deposits) to:

[Question ID = 24737]

1. Rs. 30,000 per annum [Option ID = 38943]

2. Rs. 60,000 per annum [Option ID = 38946]
3. Rs. 50,000 per annum [Option ID = 38945]
4. Rs. 40,000 per annum [Option ID = 38944]

Correct Answer :-
Rs. 30,000 per annum [Option ID = 38943]

50) For a normal curve with μ = 56 and σ = 10, how much area will be found under the curve to the
left of the value 56? [Question ID = 24674]
1. 0.50 [Option ID = 38693]
2. 0.68 [Option ID = 38692]
3. 0.32 [Option ID = 38694]
4. 1 [Option ID = 38691]

Correct Answer :-
1 [Option ID = 38691]

51) ‘Leaders with strong achievement motivation are likely to have strong concern for task
objectives’. This statement is largely based on [Question ID = 24723]

1. trait theory [Option ID = 38888]

2. contingency theory [Option ID = 38890]
3. behavioural theory [Option ID = 38887]
4. social theory [Option ID = 38889]

Correct Answer :-
behavioural theory [Option ID = 38887]

52) The essentials of effective budgeting do not include [Question ID = 24717]

er
1. Top down budgeting [Option ID = 38863]
2. Sound organizational structure [Option ID = 38866]
3. Research and analysis [Option ID = 38865]
ev
4. Management acceptance [Option ID = 38864]

Correct Answer :-
Top down budgeting [Option ID = 38863]
uf

53) The essential elements of valid consideration does not include: [Question ID = 24743]
Ed

1. Consideration need to be adequate [Option ID = 38969]

2. Consideration to be furnished by the promise [Option ID = 38967]
3. Consideration may be past, present or future [Option ID = 38968]
4. Consideration as unlawful act. [Option ID = 38970]

Correct Answer :-
Consideration to be furnished by the promise [Option ID = 38967]

54) The essential of a valid acceptance does not include: [Question ID = 24744]

1. Acceptance towards completion of unlawful act. [Option ID = 38974]

2. Acceptance must be unconditional [Option ID = 38973]
3. Acceptance must be absolute [Option ID = 38972]
4. Acceptance must be communicated [Option ID = 38971]

Correct Answer :-
Acceptance must be communicated [Option ID = 38971]

55) Joint probability of two independent events A and B is…

[Question ID = 24685]
1. P ((A) X P (B)) [Option ID = 38735]
2. P ((A) / P(B)) [Option ID = 38738]
3. P ((A) - P(B)) [Option ID = 38737]
4. P ((A) + P(B)) [Option ID = 38736]

Correct Answer :-
P ((A) X P (B)) [Option ID = 38735]

56) The budgeted income statement is [Question ID = 24718]

1. End product of operating budgets [Option ID = 38867]

2. End product of financial budgets [Option ID = 38868]
3. Dependent on cash receipts and cash payments [Option ID = 38870]
4. Starting point of master budget [Option ID = 38869]

Correct Answer :-
End product of operating budgets [Option ID = 38867]

57) Income tax is an example of: [Question ID = 24735]

er
1. Proportional tax [Option ID = 38936]
2. Regressive tax [Option ID = 38937]
3. Progressive tax [Option ID = 38935]
4. Indirect tax [Option ID = 38938]
ev
Correct Answer :-
Progressive tax [Option ID = 38935]
uf

58) The Arithmetic Mean of 7 observations is 100 and that of 5 is 70, the combined mean of all the
12 observations will be: [Question ID = 24678]
Ed

1. 70 [Option ID = 38708]
2. 80 [Option ID = 38709]
3. 100 [Option ID = 38707]
4. 87.5 [Option ID = 38710]

Correct Answer :-
100 [Option ID = 38707]

59) Two variables have correlation coefficient as 0.60, then what percentage of one variable is
explained by other variable? [Question ID = 24683]

1. 40% [Option ID = 38728]

2. 36% [Option ID = 38729]
3. 60% [Option ID = 38727]
4. 64% [Option ID = 38730]

Correct Answer :-
60% [Option ID = 38727]

60) Short run aggregate supply curve of Keynes is [Question ID = 24662]

1. Vertical [Option ID = 38644]
2. Horizontal [Option ID = 38643]
3. Upward sloping from left to right [Option ID = 38645]
4. Downward sloping from left to right [Option ID = 38646]

Correct Answer :-
Horizontal [Option ID = 38643]

61) Fixed production overhead are recognized as [Question ID = 24715]

1. Part of closing inventory costs under both absorption and Variable Costing [Option ID = 38858]
2. Product costs under variable costing [Option ID = 38856]
3. Product costs under variable costing [Option ID = 38857]
4. Period costs under absorption costing [Option ID = 38855]

Correct Answer :-
Period costs under absorption costing [Option ID = 38855]

62) The leadership styles like exploitative, benevolent, consultative, and participative are given by
[Question ID = 24724]

er
1. House [Option ID = 38892]
2. Fiedler [Option ID = 38894]
3. Likert [Option ID = 38893]
ev
4. Blake and Mouton [Option ID = 38891]

Correct Answer :-
Blake and Mouton [Option ID = 38891]
uf

63)
Ed

[Question ID = 24693]

1. 6 [Option ID = 38767]
2. 5 [Option ID = 38768]
3. 3 [Option ID = 38770]
4. 4 [Option ID = 38769]

Correct Answer :-
6 [Option ID = 38767]

64)

[Question ID = 24696]

1. 3/10 [Option ID = 38780]

2. 10/3 [Option ID = 38779]
3. 10 [Option ID = 38781]
4. 3 [Option ID = 38782]

Correct Answer :-
10/3 [Option ID = 38779]

65) Accumulated profits include— [Question ID = 24706]

1. Workmen’s compensation fund. [Option ID = 38821]

2. Superannuation fund [Option ID = 38820]
3. Depreciation Fund [Option ID = 38822]
4. Provision for doubtful debts [Option ID = 38819]

Correct Answer :-
Provision for doubtful debts [Option ID = 38819]

66) If Kurtosis is less than 3 then the curve is

i. Mesokurtic
ii. Leptokurtic.

er
iii. Platykurtic. [Question ID = 24684]

1. Only iii [Option ID = 38733]

2. Only ii [Option ID = 38732]
ev
3. Only i [Option ID = 38731]
4. i and ii but not iii [Option ID = 38734]

Correct Answer :-
uf

Only i [Option ID = 38731]

67) The theory which states that, ‘asset prices reflect all publicly available information’ is known as:
Ed

[Question ID = 24671]

1. Technical analysis [Option ID = 38680]

2. Random walk theory [Option ID = 38682]
3. Efficient market hypothesis [Option ID = 38679]
4. Fundamental analysis [Option ID = 38681]

Correct Answer :-
Efficient market hypothesis [Option ID = 38679]

68) Loss on issue of debentures is treated a [Question ID = 24703]

1. Current liability [Option ID = 38809]

2. Current asset [Option ID = 38808]
3. Miscellaneous expenditure [Option ID = 38810]
4. Intangible asset [Option ID = 38807]

Correct Answer :-
Intangible asset [Option ID = 38807]

69)
the process by which organizations gain new knowledge and insights that lead to a modification in
behaviour and action is [Question ID = 24731]

1. organizational commitment [Option ID = 38922]

2. organizational learning [Option ID = 38921]
3. learning organization [Option ID = 38920]
4. OB modification [Option ID = 38919]

Correct Answer :-
OB modification [Option ID = 38919]

70) the process through which people develop beliefs about what is right wrong and just is
[Question ID = 24730]

1. judgement [Option ID = 38918]

2. ethics [Option ID = 38916]
3. morality [Option ID = 38917]
4. Socialization [Option ID = 38915]

Correct Answer :-
Socialization [Option ID = 38915]

er
71) Which of the following is not the reason for shift in aggregate supply curve towards left?
[Question ID = 24666]
ev
1. Decrease in economy’s capital stock [Option ID = 38660]
2. An economy experiences decrease in immigration [Option ID = 38659]
3. Negative Technological growth [Option ID = 38661]
uf

4. Technological Progress [Option ID = 38662]

Correct Answer :-
An economy experiences decrease in immigration [Option ID = 38659]
Ed

72) Which of the following incomes is not taxable under the head ‘Income from other Sources’?
[Question ID = 24739]

1. Ground rent [Option ID = 38954]

2. Pension [Option ID = 38952]
3. Director’s fee [Option ID = 38953]
4. Interest on bank deposits [Option ID = 38951]

Correct Answer :-
Interest on bank deposits [Option ID = 38951]

73) Which of the following is an example of relative measure of dispersion? [Question ID = 24677]

1. Variance [Option ID = 38705]

2. Coefficient of variation [Option ID = 38706]
3. Standard deviation [Option ID = 38704]
4. Range [Option ID = 38703]

Correct Answer :-
Range [Option ID = 38703]
74) Which of the following is a disadvantage of incorporating a Limited Liability Partnership (LLP):
[Question ID = 24745]

1. In certain cases the shield of limited liability may be pierced. [Option ID = 38977]
2. Action of single partner can bind the LLP [Option ID = 38976]
3. Unlimited members cannot be added [Option ID = 38978]
4. Not allowed to raise funds [Option ID = 38975]

Correct Answer :-
Not allowed to raise funds [Option ID = 38975]

75) Which of the following is not an example of compressed data [Question ID = 24682]

1. Data array [Option ID = 38724]

2. Frequency distribution [Option ID = 38723]
3. Histogram [Option ID = 38725]
4. Ogive [Option ID = 38726]

Correct Answer :-
Frequency distribution [Option ID = 38723]

er
76) Which of the following is not a deduction from gross total income under section 80C? [Question
ID = 24742]
ev
1. Life insurance premium [Option ID = 38963]
2. Contribution towards an approved superannuation fund [Option ID = 38965]
3. Contribution towards statutory provident fund [Option ID = 38964]
uf

4. Leave travel concession [Option ID = 38966]

Correct Answer :-
Ed

Life insurance premium [Option ID = 38963]

77) Which of the following is not a characteristic of an isoquant? [Question ID = 24657]

1. Isoquant is convex to the origin [Option ID = 38623]

2. Isoquant is downward sloping [Option ID = 38624]
3. Isoquant is linear in nature [Option ID = 38626]
4. Different combinations of Labour and Capital produce same output on an isoquant [Option ID = 38625]

Correct Answer :-
Isoquant is convex to the origin [Option ID = 38623]

78) Which of the following is True with respect to a Positively Skewed Distribution? [Question ID =
24681]

1. Mean > Median > Mode [Option ID = 38720]

2. Mode > Median > Mean [Option ID = 38719]
3. Mode > Mean > Median [Option ID = 38722]
4. Median > Mode > Mean [Option ID = 38721]

Correct Answer :-
 Mode > Median > Mean [Option ID = 38719]

79) Which of the following is correct? [Question ID = 24675]

1. Median is not affected by extreme values [Option ID = 38696]

2. Median is affected by extreme values. [Option ID = 38695]
3. Mean is not affected by extreme values [Option ID = 38697]
4. Mode is the middlemost point of a data set. [Option ID = 38698]

Correct Answer :-
Median is affected by extreme values. [Option ID = 38695]

80) Which of the following statement does not hold with respect to incidence of tax? [Question ID =
24734]

1. Indian income is always taxable in India irrespective of the residential status of the taxpayer [Option ID =
38931]
2. All foreign income is taxable in the hands of resident but not ordinarily resident in India. [Option ID = 38933]
3. All foreign income is taxable in the hands of resident and ordinarily resident in India. [Option ID = 38932]
4. All foreign income is not taxable in the hands of non-resident in India. [Option ID = 38934]

er
Correct Answer :-
Indian income is always taxable in India irrespective of the residential status of the taxpayer [Option ID =
38931]
ev
81) Which of the following statement is not true? [Question ID = 24658]

1. MC= ∆TC/∆Q [Option ID = 38628]

uf

2. TC= AFC + AVC [Option ID = 38630]

3. AVC= TVC/Q [Option ID = 38627]
4. AFC= TFC/Q [Option ID = 38629]
Ed

Correct Answer :-
AVC= TVC/Q [Option ID = 38627]

82) Which of the following statements is false? [Question ID = 24733]

1. There is no difference between exemption and deduction. [Option ID = 38929]

2. Tax rates are not given by the Income Tax Act but by the Finance Act which is passed in the Parliament.
[Option ID = 38928]
3. Income arises either on receipt or accrual basis. [Option ID = 38927]
4. Deduction can be less than, equal to or more than the amount of income [Option ID = 38930]

Correct Answer :-
Income arises either on receipt or accrual basis. [Option ID = 38927]

83) Which of the following statements is false? [Question ID = 24709]

1. Debit balance of Bank column of Cash Book is an Asset [Option ID = 38833]

2. Credit side total of Discount column of Cash Book is an income [Option ID = 38831]
3. Credit balance of Bank Pass Book is an overdraft [Option ID = 38832]
4. Debt balance of Cash column of Cash Book is an Asset [Option ID = 38834]
Correct Answer :-
Credit side total of Discount column of Cash Book is an income [Option ID = 38831]

84) Which of the following is a flow concept [Question ID = 24661]

1. Mineral resource [Option ID = 38641]

2. Capital [Option ID = 38639]
3. forest [Option ID = 38642]
4. Income [Option ID = 38640]

Correct Answer :-
Capital [Option ID = 38639]

85) Which of the following items would not form part of the shareholders’ equity of a company on
the statement of financial position? [Question ID = 24702]

1. Ordinary share capital [Option ID = 38803]

2. Retained Profit [Option ID = 38805]
3. Trade payables [Option ID = 38804]
4. Share premium [Option ID = 38806]

er
Correct Answer :-
Ordinary share capital [Option ID = 38803]
ev
86) Which of the following is not expressly allowed as deduction while computing business income?
[Question ID = 24740]

1. Insurance in respect of plant, machinery and furniture used for business purposes. [Option ID = 38957]
uf

2. Bonus or commission payed to employee [Option ID = 38958]

3. Rent and repair expenditure of premises used for the purpose of carrying on business or profession. [Option ID
= 38955]
Ed

4. Litigation expenses for registration of shares. [Option ID = 38956]

Correct Answer :-
Rent and repair expenditure of premises used for the purpose of carrying on business or profession. [Option
ID = 38955]

87) Which of the following is true for Phillips curve [Question ID = 24663]

1. It shows inverse relationship between rate of unemployment and rate of increase in money wage [Option ID =
38649]
2. It shows inverse relationship between rate of unemployment and rate of general price level [Option ID =
38650]
3. It shows direct relationship between rate of unemployment and rate of general price level [Option ID = 38648]
4. It shows a direct relationship between rate of unemployment and rate of increase in money wage [Option ID =
38647]

Correct Answer :-
It shows a direct relationship between rate of unemployment and rate of increase in money wage [Option ID
= 38647]

88)
Marginal efficient capital as determinant of private investment does not include the following-
[Question ID = 24660]

1. Life of the product [Option ID = 38637]

2. Supply price of capital [Option ID = 38636]
3. Expected yield [Option ID = 38635]
4. Propensity to consume [Option ID = 38638]

Correct Answer :-
Expected yield [Option ID = 38635]

89) Indirect labour is [Question ID = 24710]

1. Raw material cost [Option ID = 38836]

2. Non manufacturing cost [Option ID = 38835]
3. Product cost [Option ID = 38837]
4. Period cost [Option ID = 38838]

Correct Answer :-
Non manufacturing cost [Option ID = 38835]

er
90) Aggregate demand curve may shift towards right due to [Question ID = 24665]

1. Government decides to reduce purchase of machinery [Option ID = 38657]

ev
2. Availability of investment tax credit to the firm [Option ID = 38658]
3. Reduction in exports [Option ID = 38656]
4. Increase in savings in economy [Option ID = 38655]
uf

Correct Answer :-
Increase in savings in economy [Option ID = 38655]
Ed

91) In make or buy decision, relevant costs [Question ID = 24716]

1. Opportunity costs [Option ID = 38861]

2. Purchase price of units [Option ID = 38860]
3. Production costs to be saved, purchase price of units, opportunity costs. [Option ID = 38862]
4. Production costs that will be saved [Option ID = 38859]

Correct Answer :-
Production costs that will be saved [Option ID = 38859]

92) Provision for bad debt is made as per the [Question ID = 24707]

1. Going Concern Concept [Option ID = 38826]

2. Entity Concept [Option ID = 38823]
3. Conservatism Concept [Option ID = 38824]
4. Cost Concept [Option ID = 38825]

Correct Answer :-
Entity Concept [Option ID = 38823]

93)
In a company, there are zero units in beginning work in progress, 7000 units started into production
and 500 units in ending work in progress 20% completed. The physical units to be accounted for are
[Question ID = 24712]

1. 7000 [Option ID = 38843]

2. 7340 [Option ID = 38846]
3. 7360 [Option ID = 38844]
4. 7500 [Option ID = 38845]

Correct Answer :-
7000 [Option ID = 38843]

94) While computing income under the head ‘Salaries’, exemption under House Rent Allowance is
available to an employee when: [Question ID = 24736]

1. the employee pays rent which does not exceed 10% of salary [Option ID = 38941]
2. the employee pays rent which exceeds 10% of salary [Option ID = 38942]
3. the employee lives in a house for which he does not pay rent [Option ID = 38940]
4. the employee lives in his own house [Option ID = 38939]

Correct Answer :-

er
the employee lives in his own house [Option ID = 38939]

95) Any activity that causes resources to be consumed is called [Question ID = 24713]
ev
1. Cost Driver [Option ID = 38849]
2. Non-Value added activity [Option ID = 38850]
3. Facility-level activity [Option ID = 38848]
uf

4. Just-in-time activity [Option ID = 38847]

Correct Answer :-
Just-in-time activity [Option ID = 38847]
Ed

96) The applicability of the Information and Technology Act 2000 does not :

[Question ID = 24747]

1. Applicable on contraventions committed outside India as well [Option ID = 38985]

2. Applicable on offenses [Option ID = 38984]
3. Apply on Cheques drawn on Indian Bank [Option ID = 38986]
4. Extend to whole of India [Option ID = 38983]

Correct Answer :-
Extend to whole of India [Option ID = 38983]

97) Money without intrinsic value is known as: [Question ID = 24668]

1. Commodity money [Option ID = 38667]

2. Demands deposits [Option ID = 38670]
3. Fiat money [Option ID = 38668]
4. Currency [Option ID = 38669]
Correct Answer :-
Commodity money [Option ID = 38667]

98) As per section 78 of the companies act, amount collected as premium on securities cannot be
utilized for: [Question ID = 24704]

1. Buy back of its own shares [Option ID = 38814]

2. Purchase of fixed assets [Option ID = 38812]
3. Writing off preliminary expenses [Option ID = 38813]
4. Issuing fully paid bonus shares to the members [Option ID = 38811]

Correct Answer :-
Issuing fully paid bonus shares to the members [Option ID = 38811]

99) When price elasticity of demand for chicken is 0.34, which of the following statements is true?
[Question ID = 24649]

1. The price elasticity of demand for chicken is inelastic. [Option ID = 38593]

2. The price elasticity of demand for chicken is elastic. [Option ID = 38592]
3. The price elasticity of demand for chicken cannot be determined. [Option ID = 38594]

er
4. The price elasticity of demand for chicken is zero. [Option ID = 38591]

Correct Answer :-
ev
The price elasticity of demand for chicken is zero. [Option ID = 38591]

100) AS – 14 is not applicable if when transferee company acquires transferor company and
transferor company: [Question ID = 24700]
uf

1. Ceases to exist [Option ID = 38795]

2. Separate entity is Continue to exist [Option ID = 38796]
3. Valuation of inventory [Option ID = 38798]
Ed

4. Applied in all cases [Option ID = 38797]

Correct Answer :-
Ceases to exist [Option ID = 38795]