Objective commerce for B.Ed

Objective commerce for B.Ed
MCQ Bed Commerce
Online Free Practice Test of Commerce for BEd Exam
1. Giffin goods may be characterized as—
(A) Inferior goods
(B) To have positive demand curve
(C) To have negative demand curve
(D) A case when income effect is positive and very strong

Ans. (A)

2. By which tax does the’ Government of India earn maximum revenue?
(A) Income-tax
(B) Custom duty
(C) Property-tax
(D) Excise duty

Ans. (D)

3. The main objective of controlling is—
(A) Maintaining discipline
(B) Motivating subordinates
(C) Reducing gap between planning and performance
(D) None of the above

Ans. (C)

4. A regressive tax will tend to redistribute income more—
(A) Equally
(B) Unequally
(C) Equitably
(D) Inequitably

Ans. (B)

5. Which of the following totals would not be included in a firm’s Profit and Loss Account?
(A) Overhead cost
(B) Direct cost
(C) Allowances for depreciation of assets
(D) All the above will be included

Ans. (B)

6. Which of the following is the basis for determining the national income?
(A) Total revenue of the State
(B) Production of goods and services
(C) Net profit earned and ‘expenditure incurred by the state
(D) All the above

Ans. (D)

7. All of the following totals would be included in a company’s Profit and Loss A/c except—
(A) Direct costs
(B) Allowances for depreciation of assets
(C) Overhead costs
(D) Value of premises owned by the company

Ans. (A)

8. When did WTO, which set out rules for world trade, come into force?
(A) 1984
(B) 1951
(C) 1954
(D) 1995

Ans. (D)

9. Who manage a joint stock company?
(A) Its Board of Directors
(B) Its General Body
(C) Its Management Council
(D) All the above

Ans. (A)

10. The costs which do not vary with the changes in a firm’s output are known as—
(A) Fixed costs
(B) Variable costs
(C) Implicit costs
(D) Social costs

Ans. (A)

11. Which of the following States leads in Commerce and Industry?
(A) Gujarat
(B) Tamil Nadu
(C) Maharashtra
(D) West Bengal

Ans. (C)
12. Which of the following States accounts for the largest share of industrial production and capital investment?
(A) Gujarat
(B) Maharashtra
(C) Tamil Nadu
(D) West Bengal

Ans. (B)

13. When the prices are rising, which of the following steps should the government adopt to bring about reduction in prices?
(A) Reduce the rate of tax on personal income
(B) Increase governmental spending
(C) Lower the interest rate
(D) Increase the availability of goods

Ans. (D)

14. Which of the following is not mathematical average?
(A) Geometric average
(B) Harmonic average
(C) Quadratic average
(D) Progressive average

Ans. (D)

15. Statutory Audit reports on—
(A) The efficiency of the Unit
(B) Accuracy of Stocjcs
(C) Accuracy of Accounts
(D) The proper follow-up of Government rules

Ans. (C)

16. Fourteen leading Commercial Banks were nationalized on—
(A) 15th August, 1947
(B) 26th January, 1949
(C) 19th July, 1969
(D) 29th July, 1969

Ans. (C)

17. According to Company Law a work done beyond the rights described in Memorandum of Association is—
(A) Legal
(B) Immoral
(C) Useless
(D) Opposed to public policy

Ans. (C)

18. Who issues the Certificate of Incorporation?
(A) Central Government
(B) Shareholders
(C) Director
(D) Company Registrar

Ans. (D)

19. Who stated ‘Bad money drives good money out of circulation’?
(A) Keynes
(B) Gresham
(C) Kent
(D) Mallows

Ans. (B)

20. A partner has a right—
(A) To take part in business
(B) To be consulted
(C) To interest on capital
(D) All of the above

Ans. (D)

21. What is the time duration of Managing director in a Public Company?
(A) 5 years
(B) 1 year
(C) 7 years
(D) Life-long

Ans. (A)

22. The concept of functional foreman as first developed by—
(A) Harrington Emerson
(B) F. W. Taylor
(C) F. B. Gilberth
(D) Elton Mayo

Ans. (B)

23. Motivation is basically a—
(A) Sociological process
(B) Physiological process
(C) Psychological process
(D) Intellectual process

Ans. (C)

24. Assets in the Balance Sheet of a company are arranged in the order of—
(A) Liquidity
(B) Market value
(C) Book value
(D) Permanence

Ans. (C)

25. Non-convertible debentures refer to—
(A) Owner capital
(B) Loan capital
(C) Short-term debts
(D) All of the above

Ans. (B)

26. Which of the following is not a current inability?
(A) Bills payable
(B) Bank overdraft
(C) Minority interest
(D) Unclaimed dividends

Ans. (C)

27. The term ‘depletion’ is used in relation to—
(A) Fixed Assets
(B) Wasting Assets
(C) Current Assets
(D) Intangible Assets

Ans. (B)

28. FIFO is advisable in case of—
(A) Rising prices
(B) Falling prices
(C) Constant prices
(D) None of the above

Ans. (B)

29. Main source of India’s national income is—
(A) Agriculture
(B) Industry
(C) Forestry
(D) Construction

Ans. (A)

30. Staffing includes—
1. Training 2.praisal
3. Placement 4.Directing
(A) 1 and3
(B) 1, 2 and 3
(C) 2 and 3
(D) 1, 2, 3 and 4

Ans. (B)

31. While delegating superior delegates—
(A) Only authority
(B) Authority and responsibility
(C) Authority, responsibility and accountability
(D) Authority and responsibility but not accountability

Ans. (A)

32. Which of the following is the most democratic form of organization?
(A) Line
(B) Line and Staff
(C) Functional
(D) Committee

Ans. (B)

33. The role of Staff in Line Staff organization is—
(A) Authoritative
(C) Responsible
(B) Advisory
(D) All of the above

Ans. (B)

34. A company secretary is appointed by—
(A) The Government
(B) Debenture holders
(C) The Board of Directors
(D) Shareholders

Ans. (C)

35. Which of the following would be fixed cost to manufacturing firm?
(A) Plant and Machinery
(B) Raw materials
(C) Wages
(D) Replacement of load

Ans. (D)

36. Public Sector consists of those enterprises in which
The State owns—
(A) 50% of the capital
(B) 66% of the capital
(C) 40% of the capital
(D) More than 50% of the capital

Ans. (D)

37. Which is a capital expenditure?
(A) Wages paid
(B) Salaries paid
(C) Heavy advertisement cost
(D) Patents acquired

Ans. (D)

38. A company can purchase its own—
(A) Equity shares
(B) Preference shares
(C) Debentures
(D) All of the above

Ans. (D)

39. A and B are of 7: 5 partners. C is admitted for 1/5 share. The new ratio is—
(A) 3:2:1
(B) 5:3
(C) 2: 2: 1
(D) None of the above

Ans. (B)

40. The sacrificing ratio in above case is—
(A) 7:5
(B) 2: l
(C) Equal
(D) 1:2

Ans. (A)

41. Immediate Liquidity Test is—
(A) Current ratio
(B) Quick ratio
(C) Fixed assets turnover ratio
(D) Stock turnover ratio

Ans. (B)

42. Cost accounting is a part of—
(A) Management accounting
(B) Financial accounting
(C) General accounting
(D) Special accounting

Ans. (A)

43. Theory ‘X’ and ‘Y’ was originated by—
(A) P. F. Drucker
(B) McGregor
(C) Maslow
(D) Herzberg

Ans. (B)

44. In a big office, efficient filing is—
(A) Vertical
(B) Horizontal
(C) Both
(D) None

Ans. (A)

45. Net worth of a business means—
(A) Total fixed assets
(B) Assets minus liabilities
(C) Fixed assets minus current assets
(D) Share capital plus current liabilities

Ans. (B)

46. Funds in relation to Funds Flow Statement earns—
(A)Net assets
(B)Current assets
(C) Net current assets
(D)Current liabilities

Ans. (C)

47. In the absence of an agreement, the partners are entitled to interest on their loans at the rate of—
(A) 5%
(B) 6%
(C) 7%
(D) 10%

Ans. (B)

48. Income and Expenditure A/c is prepared by—
(A) Manufacturing concerns
(B) Non-manufacturing concerns
(C) Trading concerns
(D) Non-trading concerns

Ans. (D)

49. Debit side of Income and Expenditure A/c shows—
(A) Income
(B) Expenditure
(C) Cash receipts
(D) Cash payments

Ans. (B)

50. Quick ratio is a test of—
(A) Liquidity
(B) Solvency
(C) Profitability
(D) None of the above

Ans. (B)

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

Ans. (D)

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

Ans. (B)

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

Ans. (B)

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

Ans. (A)

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

Ans. (A)

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

Ans. (C)

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

Ans. (D)

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

Ans. (B)

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

Ans. (A)

60. Which of the following banks is known as lender of last resort?
(A) SBI
(B) RBI
(C) NABARD
(D) IDBI

Ans. (B)

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

Ans. (A)

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

Ans. (C)

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

Ans. (D)

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

Ans. (B)

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

Ans. (A)

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

Ans. (C)

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

Ans. (A)

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

Ans. (A)

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

Ans. (C)

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

Ans. (D)

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

Ans. (A)

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

Ans. (D)

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

Ans. (C)

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

Ans. (B)

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

Ans. (C)

76. In which method decreases every year—
(A) Straight line method
(B) Sum of years digit method
(C) Annuity method
(D) Sinking fund method is—

Ans. (B)

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

Ans. (A)

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

Ans. (B)

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

Ans. (C)

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

Ans. (C)

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

Ans. (D)

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

Ans. (B)

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

Ans. (A)

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

Ans. (B)

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

Ans. (C)

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

Ans. (B)

87. Prepaid Insurance Account
(A) An expense
(B) A revenue
(C) An asset
(D) None of the above

Ans. (C)

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

Ans. (A)

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

Ans. (A)

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

Ans. (C)

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

Ans. (A)

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

Ans. (B)

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

Ans. (A)

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

Ans. (C)

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

Ans. (A)

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

Ans. (A)

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

Ans. (B)

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

Ans. (C)

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

Ans. (C)

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

Ans. (D)