Commerce For Accountant Jobs Model paper

Commerce For Accountant Jobs Model paper
Sample Paper For Accountant Jobs
1. Which one of the following pairs is not correctly matched?
(a) Company : Authorized capital
(b) Shares : Face value
(c) Bonus shares : Market value
(d) Preference shares : Fixed dividend
Ans. (c)

2. The phenomenon of the stock market in which almost the entire supply of a particular security is held by a few people is named as:
(a) Wash sales
(b) Cornering
(c) Rigging
(d) Arbitrage
Ans. (b)

3. Which one of the following statements is not correct in respect of private limited companies?
(a) Number of members is limited to 50
(b) Operations are restricted to a particular State
(c) Invitation to public for subscription to capital is prohibited
Ans. (?)

4. Premium Method is used for goodwill treatment in the case of:
(a) Retirement of partner
(b) Admission of partner
(c) Dissolution of partnership firm
(d) Sale of partnership to a company
Ans. (b)

5. The source of the rules relating to internal management of a company is known from:
(a) Memorandum of Association
(b) Prospectus
(c) Articles of Association
(d) Fundamental Rules
Ans. (c)

6. When a company exceeds the powers granted to it by its Memorandum of Association, it is called:
(a) Intra vires
(b) Ultra vires
(c) Lien
(d) Mutatis mutandis
Ans. (b)

7. In case the partnership deed does not specify the rights and obligations, the provisions of the Partnership Act, 1932 lay down which of the following rights and duties of a partner?’
I. Every partner has a right to take part in the conduct and management of the firm’s business
2. Every partner has the right to receive interest on loans and advances made b him to the firm. The rate of interest should be 8% unless otherwise agreed to by the parties.
3. Every partner has the right to be indemnified or the loss sustained by him in the firm’s business.
Code:
(a) 1 and 3
(b) 2 only
(c) 1, 2 and 3
(d) 2 and 3
Ans. (a)

8. Which of the following chief characteristics of a Joint-stock Company are false?
1. A company is a legal person
2. A company has its separate entity
3. A company has its citizenship
4. A company owns, enjoys, sells and purchases properties in its name
5. A company has voting rights and casts votes in its favour
6. A company can sue and be sued against
Select the correct answer using the .Code given
below:
Code:
(a) 1, 3 and 6
(b) 2, 4 and 5
(c) 3 and 5
(d) 2 and 4
Ans. (c)

9. Which of the following is not the legal position of sole proprietorship?
(a) The proprietor and his. business has separate personality
(b) Free from legal formalities in operation
(c) The liability is unlimited
(d) Not governed by any Special Act
Ans. (a)

10. For which of the following industry/industries, I. G. Patel Enquiry Committee was constituted by the Government of India for examining the justification of existence of Managing Agency System in the Company?
1. Sugar Industry
2. cotton-textile Industry
3. Jute Industry
4. Cement Industry
Select the correct answer using the Code given below:
Code:
(a) 1 and 2
(b) 5 only
(c) 1, 2, 3, 4 and 4
(d) 3 and 4
Ans. (c)

11. One of the important weaknesses of the decentralized structure is:
(a) unsuitability in a fast-changing environment
(b) difficulty in pinpointing responsibilities
(c) difficulty in coordinating common functions
(d) difficulty in promoting innovations
Ans. (c)

12. Match List-I with List-II and select the correct answer using the Code given below the lists:
List-I List-II
A. Holding Company 1. Maximum of 50 Members
B. Government Company 2. Minimum of 7 Members
C. Public Company 3. Partly Public
D. Private Company 4. Business Combination
Code:
A B C D
(a) 2 1 4 3
(b) 4 1 2 3
(c) 2 3 4 1
(d) 4 3 2 1
Ans. (d)

13. Match List-I (Different Types of Shares/Events) with List-Il (Transactions by the Company) and select the correct answer using the Code given below the lists:
List—I List—II
(Different Types of Shares/Events) (Transactions by the Company)
A. Sweat equity shares 1. A company gives its shares to the
shareholders in the form of extra dividend
B. Bonus shares 2. Shares issued by the company at a discount
C. Right shares 3. A company provides an opportunity to the
existing shareholders to purchase subsequent
issues of shares on priority basis
D. Buy-back of shares 4. A company exercises its call option to buy
shares from the shareholders
5. Paper Industry
Codes:
A B C D
(a) 3 1 2 4
(b) 2 4 3 1
(c) 3 4 2 1
(d) 2 1 3 4
Ans. (d)

14. Match List-I and List-II and select the correct answer using the Code given below the lists:
List-I List—II
A. Partners and Firm 1. Agent and Principal relationship
B. Sole Proprietorship 2. Prospectus
C. Public Limited Company 3. Personal supervision
D. Nominal Partnership 4. Firm image
Codes:
A B C D
(a) 1 3 2 4
(b) 4 2 3 1
(c) 1 2 3 4
(d) 4 3 2 1
Ans. (a)


15. The quotation that includes all charges for delivery of goods at the buyer’s stated place is known as:
(a) Franco randu
(b) Landed price
(c) CIF price
(d) FOB
Ans. (a)

16. The main function of the Export Credit and Guarantee Corporation is:
(a) to provide clearing facility to exporters
(b) to cover the risk related to exports
(c) to act as a trade association
(d) to finance directly the exports and imports
Ans. (b)

17. Under which principle is the insurer entitled to succeed to all the rights of the insured regarding the subject matter of insurance after the claim of insurance has been fully and finally settled 2
(a) Principle bf indemnity
(b) Principle of subrogation
(c) Principle of insurance
(d) Principle of causa proxima
Ans. (b)

18. Insurable interest in a Life Insurance Contract should:
(a) at the time of contract
(b) at the time of maturity
(c) at the time of claim
(d) at the time of surrender
Ans. (a)

19. The principle that a natural and unbroken series of events is responsible for a loss or damages is known as:
(a) principle of subrogation
(b) principle of mitigation of loss
(c) principle of contribution
(d) principle of causa proxima
Ans. (d)


20. The Mechanistic Model of organizational design achieves high levels of production and efficiency because:
(a) of its de-emphasis of specialization and its emphasis on increasing job range
(b) it is highly decentralized and informal
(c) of both (a) and (b) above
(d) it is highly complex, centralized and formalized
Ans. (c)

21. The traditional concept is that authority flows from top to bottom. But a new concept of authority has been developed. This is known as acceptance theory. Who is the exponent of this view?
(a) Herbert A. Simon
(b) Douglas McGregor
(c) Chester Barnard
(d) Keith Davis
Ans. (c)

22. Which one of the following functions does not relate to O & M Division?
(a) To enlarge the organization
(b) to improve organization
(c) To simplify methods
(d) To create and maintain an efficient administrative machinery
Ans. (a)

23. An organizational manual is designed to promote:
(a) better clientele for a company
(b) better relationship between the units in an industry
(c) better understanding of basic organizational structures
(d) better information about business of the company
Ans. (c)

24. The type of control that provides a means for taking corrective action even after viability of the programme is known as:
(a) pre-action control
(b) post-action control
(c) screening control
(d) steering control
Ans. (b)

25. Which one of the following statements explains the concept of unity of command?
(a) All the workers focus on a common goal
(b)All the workers receive instructions from one authority
(c) All the workers are accountable to one authority
(d) All the workers aim at one objective at a time
Ans. (b)

26. The undertaking by insurer to compensate the insured for the loss caused to him by the damage or destruction of the property insured is under the:
(a) principle of utmost good faith
(b) principle of insurable-interest
(c) principle pf indemnity
(d) principle of contingency
Ans. (c)

27. Kurt Lewin’s three phases of organizational change consists of:
(a) unfreezing, changing, feedback
(b) changing, refreezing, feedback
(c) unfreezing, evaluation, refreezing
(d) unfreezing, changing, refreezing
Ans. (d)

28. The most complex and widely used method of job evaluation is:
(a) the job ranking method
(b) the job classification method
(c) the market pricing method
(d) the point’s method
Ans. (d)

29. The psychologist A. H. Maslow has developed a widely acclaimed conceptual framework for understanding human motivation. Human needs, according to Maslow, tend to follow the classification of five categories of needs given as under:
1. Egoistic needs
2. Safety needs
3. Social needs
4. Physiological needs
5. Self-fulfillment needs
These needs, according to Maslow, follow a basic hierarchical pattern from the most basic to the highest level needs as follows
(a) 1, 2, 3, 4, 5
(b) 4, 2, 3, 1, 5
(c) 5, 4, 3, 2, 1
(d) 1, 3, 2, 4, 5
Ans. (b)

30. A planned sequence of operations for handling recurring business trrnbsactions uniformly and consistently is known as:
(a) system
(b) procedure
(c) routine
(d) control
Ans. (a)

31. Douglas McGregor made five basic assumptions about people in his theory. First four assumptions are:
1. People are ambitious
2. They seek responsibility
3. They are dynamic
4. They recognize and accept organizational goals The fifth assumption is:
(a) people are always cooperatives and. cheerful at their work
(b) People are not self-centered
(c) People are by nature resistant to change
(d) People are intelligent and possess creative potential
Ans. (a).

32. Which one of the following statements is not correct?
(a) Management by objectives is a philosophy of management
(b) Management by objectives is an approach of management.
(c) Management by objectives is a process of participative management
(d) Management by objectives is a control technique
Ans. (b)

33. Management by objectives is implemented in an organization by stages. One such stage action planning includes:
1. assigning responsibilities for achieving objectives
2. choosing strategies appropriate to the objectives
3. allocating resources for achieving objectives
4. scheduling specific activities to .achieve maximum resource utilization.
Identify from the following combinations the correct sequence in which the action planning stages are implemented:
(a) 1, 2, 3, 4
(b) 2, 3, 4, 1
(c) 3, 4, 1, 2
(d) 2, 1, 3, 4
Ans. (b)

34. Various plans that an organization may formulate are for—purpose or mission, objective, strategies, policies, rules and procedures, programmes or projects and budget. These can be arranged in a hierarchy because higher level plans give/generate lower level plans.
Identify the correct order according to hierarchy of plans from amongst the following:
(a) Purpose or mission, objective, strategies, policies, rules and procedures, programmes or projects and budget
(b) Budget, objectives, policies, rules and procedures, purpose or mission, strategies and programmes or projects
(c) Purpose or mission, objectives, policies, strategies, programmes or projects, budget, and rules and procedures
(d) Strategies, objectives, policies, purpose or mission, programmes or projects, rules and procedures, and budget
Ans. (c)

35. The concept ‘Management by Exception’ implies:
(a) exceptional contributions by the top management
(b) achievement of objectives by participation of all concerned
(c) that the immediate superior has to deal with deviations only and not with details of the work assigned to the subordinate
(d) that the highest officer needs not worry about the results if he/she delegated his/her authority
Ans. (c)

36. Consider the following:
1. Measurement
2. Projection
3. Selection
4. Observation
5. Comparison
6. Decision making
The correct sequence of the above ingredients of management by exceptions is:
(a) 1, 2, 3, 4, 5, 6
(b) 1, 2, 3, 5, 4, 6
(c) 1, 2, 3, 6, 4, 5
(d) 1, 2, 3, 4, 6, 5
Ans. (a)

37. Consider the following two statements and select correct answer using the Code given below:
1. The office supervisor is concerned with the overall managerial functions of the office activities.
2. The office manager is concerned with guiding and directing the routine work assigned to this subordinates.
Code:
(a) Only 1 is correct
(b) Only 2 is correct
(c) Both 1 and 2 are correct
(d) Neither 1 nor 2 is correct
Ans. (d)


38. According to Section 33 (2) of the Companies Act, a declaration stating that all the requirements of the Companies Act and other formalities relating to registration have been complied with, shall be signed by which one of the following?
(a) An Advocate of the Supreme Court or High Court
(b) An Attorney or a Pleader entitled to appear before the High Court
(c) A whole-time practicing Secretary or a Chartered Accountant in India and engaged in the formation of the Company
(d) A person named in the Articles of the Company as a Director/ Manager/Secretary
Ans. (All)

39. Which one of the following types of duties is not to be performed by a duly-appointed Secretary of a Company?
(a) All statutory duties of the Company
(b) Duties towards Directors of the Company
(c) Duties towards Shareholders of the Company
(d) Duties towards Registrar of the Company
Ans. (d)

40. The importance of the Memorandum of Association of a Joint stock Company is that:
1. it is an unalterable Charter of the company
2. for the incorporation of every company, it is essential.
3. its objective is to express clearly the risks to its shareholders and members
4. it ascertains the limit within which the company works and deals
Which of these statements are correct?
(a) 1, 2 and 3
(b) 2 and 4
(c) 1 and 3
(d) 1, 2, 3 and 4
Ans. (b)

41. Within how much period a copy of the Profit and Loss Account and Balance Sheet of Company are to be filled with the Registrar?
(a) 1-4 days of Annual Meeting of the Company
(b) 21 days of Annual Meeting of the Company
(c) 30 days of Annual Meeting of the Company
(d) 45 days of Annual Meeting of the Company
Ans. (c)

42. Under which of the following circumstances, the Directors of a Company, being the agents/representatives become personally responsible?
1. When they act beyond their power
2. When they are convicted for any fraud
3. When they have given any false statement in the prospectus
4. When they have clearly accepted the responsibility of being liable for some fault of theirs
Select the correct answer using the Code given below:
Code:
(a) 2 and 3
(b) 1 and 4
(c) l, 2, 3 and 4
(d) 1, 3 and 4
Ans. (c)

43. A company needs to issue prospectus:
(a) for every Public issue
(b) for every Public issue as well Rights issue
(c) for every Public issue. Right issue and l3unus shares
(d) for every Public issue if it is a private limited company
Ans. (a)

44. According to the Company Law, the first Ordinary General Meeting of the Company must be convened within
(a) 18 months of its incorporation
(b) 12 months of its incorporation
(c) 9 months of its incorporation
(d) 3 months of its incorporation
Ans. (a)

45. According to Section 385 of the Companies Act, which one of the following is not disqualified for the post of Manger in a company?
(a) An undischarged insolvent, or one who has at any time within the preceding five years been adjudged an insolvent
(b) One who suspends, or has at any time within the preceding five years suspended, payment to his creditors, or makes, or has at any time within the preceding five years made, a composition with them
(c) One who has not attained the age of 48 years
(d) One who is, or has at any time within the preceding five years been, convicted by a Court in India of an offence involving moral turpitude
Ans. (c)
46. Consider the following statements
According to Section 34 of the Companies Act, when a company is registered and a certificate—of incorporation is issued by the Registrar, important consequence which follow are that:
1. the company becomes a distinct entity
2. the company acquires a perpetual succession
3. a private company can commence its business immediately
4. the company becomes owner of its properties
Which of these statements are correct?
(a) 1 and 2
(b) 3 and 4
(c) 1, 2 , 3 and 4
(d) 1 and 3
Ans. (c)

47. In case of winding up of a company an official liquidator realizes the amount due and proceeds from the sale of the assets and distributes the same among the following:
1. Preferential creditors
2. Debenture holders
3. Legal expenses and cost of liquidation
4. Shareholders
5. Unsecured creditors
The correct sequence of distribution is:
(a) 1, 2, 3. 4, 5
(b) 2. 4, 5, 1, 3
(c) 3, 1, 2, 5, 4
(d) 4, 2, 5, 3, 1
Ans. (c)

48. Consider the following statements:
In social accounting, the following are the measuring parameters:
1. Value added statement
2. Employee turnover ratio
3. Saving in the foreign exchange
4. Capital output ratio
Which of these statements are correct?
(a) l and 4
(b) 1 and 2
(c) 2, 3 and 4
(d) l, 2, 3 and 4

49. Which of the following pairs is correctly matched?
(a) Adjusted Profit and Loss Account : Fund from operations
(b) Proposed Dividend : Current liability
(c) Investment : Current assets
(d) Depreciation : Inflow of fund
Ans. (b)

50. Compatibility of technology refers to suitability of technology with respect to:
(a) consumption pattern of consumers
(b) skills of available human resource
(c) development of product line of the company
(d) changing taste of consumers
Ans. (b)