Sample ugc net commerce solved question paper

Sample ugc net commerce solved question paper
UGC NET Solved Sample Question Paper : Commerce
UGC NET Commerce Question Papers with answers
1. Which one of the following is the oldest form of organization?
(a) Functional Organization
(b) Line Organization
(c) Line and staff organization
(d) Departmentation
Ans. (b)

2. Which one of the following is the latest and most reliable form of communication?
(a) Speed post
(b) Telex
(c) Fax
(d) E-Mail
Ans. (d)

3. A planned sequence of operations for handling recurring business transactions uniformly and consistently is known as:
(a) System
(b) Procedure
(c) Routine
(d) Control
Ans. (a)

4. O & M in office management refers to:
(a) operating and management planning
(b) organization and management
(c) office orders and manuals
(d) none of the above
Ans. (d)

5. Which one of the following pairs is correctly matched?
(a) Manual of office procedures : in its absence the work load cannot be distributed
equitably and full day’s work cannot be assigned to
different employees.
(b) Methods study : determine the shape of things pertaining to office
activities and provides a broad guide to the course of
future operation.
(c) Organizing : undertaken by the office manager in respect of office
services only.
(d) Office policies : compiled for the information and guidance of all office
personnel.
Ans. (d)

6. To card indexing system in improvement over simple indexing system?
(a) Yes, because it facilitates location of any name a subject with the minimum of searching as the cards are arranged in an alphabetical order
(b) Yes, because the cards can be arranged in a particular order and the order cannot be changed at will
(c) No, because the cards wanted for reference cannot be taken out without holding up the works of recording of information as the other cards are left behind
(d) No, because the system has a limited capacity for expansion as the number of drawers cannot be increased as desired.
Ans. (b)


7. In the case of a deemed public limited company, the maximum number of members is restricted to:
(a) 10
(b) 50
(c) 100
(d) 200
Ans. (b)

8. Which one of the following types of registered companies will be the most appropriate for the promotion of science, culture, religion etc.?
(a) Company limited by share
(b) Company limited by Guarantee
(c) Unlimited company
(d) Government company
Ans. (b)

9. A joint stock company’s letterhead must by law, have the address of the:
(a) Managing Director
(b) Factory
(c) Registered office
(d) Head office
Ans. (c)

10. Which of the following are stated in the objects clause of Memorandum of Association of a Public Limited Company?
1. General and specific objects
2. Main objects
3. Secondary objects
4. Objects incidental to main objects
5. Other objects
(a) 2, 4 and 5
(b) 1, 3 and 5
(c) 2, 3 and 4
(d) l, 2, and 4
Ans. (a)

11. Who among the following has no right to speak at the AGM?
(a) Chairman of the company
(b) Whole time director of the company
(c) Proxy holder
(d) None of the above, as everybody has a right to speak at the AGM
Ans. (c)

12. Which one of the following is the correct sequence of steps in the formation and commencement of business of a public limited Company?
(a) Memorandum, issue of Prospectus, Filing of Prospectus, Minimum subscription.
(b) Memorandum, Minimum subscription, Filing of Prospectus, Issue of Prospectus
(c) Memorandum, Filing of prospectus, Issue of Prospectus, Minimum subscription.
(d) Memorandum, Issue of. Prospectus, Minimum subscription, filing of prospectus.
Ans. (c)

13. Those preference shares which do not enjoy the right to share additional profits come under the category of:
(a) Irredeemable Preference Shares
(b) Participating Preference Shares
(c) Non-cumulative Preference Shares
(d) Non-participating Preference Shares
Ans. (d)

14. Clauses in the Articles of Association can be altered by:
(a) a special resolution of the Board of Directors
(b) an ordinary resolution in the general meeting
(c) a special resolution in the general meeting
(d) obtaining permission from the Central Government
Ans. (c)

15. Under the Companies Act, 1956, the financial years of a company:
(a) must be exactly 12 months
(b) must not be less than 12 months
(c) may be more or less than a calendar year, but its shall not exceed 15 months
(d) may be more or less than a calendar year, but it shall not exceed 20 months.
Ans. (c)

16. Blue chip security is one which:
(a) given assured high returns
(b) almost every investor is willing to buy
(c) offers the highest liquidity and sells always much above par
(d) is issued by the reputed and profit making companies.
Ans. (c)

17. ‘Doctrine of constructive Notice’ is the notice:
(a) of alteration of ‘objects clause’ to the Registrar of companies
(b) of change of name to the members of the company
(c) to the public as to the issue of prospectus
(d) to outsiders dealing with the company as to the contents of the Memorandum and Articles of Association
Ans. (d)

18. Under the guidelines of SEBI, pricing of first capital issues should be on par value only in the case of:
(a) an existing company with no past reserves
(b) a private company converting into a public company
(c) a new company promoted by an existing company
(d) a new company with no connections with other companies
Ans. (d)

19. Which of the following statements are correct?
I. A mirror is not competent to become a member of a company.
2. A firm cannot be treated as a member of a company
3. A foreigner may become*member of a company
4. A partnership firm cannot hold shares in a company in the individual il5ames of partners as joint holders
(a) l and 2
(b) 2, 3 and 4
(c) 1, 3 and 4
(d) 1, 2 and 3
Ans. (d)

20. In the case of a company making a public issue, ‘Minimum Subscription’ must provide for which of the following?
1. Investments to be made
2. Preliminary expenses
3. Repayment of money borrowed for preliminary expenses
4. Working capital
5. Any other expenditure if it is specifically stated
(a) 1, 2, 3, 4 and 5
(b) l, 3 and 5
(c) 1, 2 and 4
(d) 2, 3, 4 and 5
Ans. (d)

21. A meeting of the Board of Director must be held at least once every
(a) two months
(b) four months and at least three such mt tings must be held every year
(c) three months and at least four such meeting must be held every year
(d) six months
Ans. (c)

22. The power to make calls on share can be exercised by the:
(a) shareholders of the company in general meeting
(b) Company Secretary on his own
(c) Board of Directors of the company
(d) Managing Directors of the company
Ans. (c)

23. One of the important powers that must be exercised by the Board of Directors and cannot be delegated to a committee or any of the managerial personnel is the power to:
(a) issue debentures
(b) take decisions on investment of company funds
(c) make loans
(d) declare dividends
Ans. (a)

24. The annual general meeting can be called by the:
(a) Company secretary
(b) Board of Directors
(c) Managing Directors
(d) Non-executive directors of the company
Ans. (a)

25. Under the Companies Act, 1956, the Balance Sheet and Profit and Loss Account of a company are required to be signed by the manager or the secretary of the company and by how many directors including the Managing Director?
(a) One
(b) Two
(c) Three
(d) All
Ans. (b)

26. A law graduate with specialization is company can be appointed as company secretary of a company having a paid up capital of:
(a) above one crore rupees
(b) above two crores rupees
(c) above five crores rupees
(d) None of the above
Ans. (d)

REASONI’NG

Directions: The following fourteen items consist of two statements are labelled the ‘Assertion A’ and the other labelled the ‘Reason R’. You are to examine these two statements carefully and decide if the Assertion A and the Reason. R are individually true and if so, whether the Reason is a correct explanation of the Assertion. Select your answer to these items using the codes given below and mark your answer sheet accordingly.
(a) Both A and R are true and R is the correct explanation of A
(b) Both A and R are true but l. is not a correct explanation of A
(c) A is true but R is false
(d) A is false but R is true

27. Assertion (A): A construction company, which by its Memorandum and Articles had powers to borrow and lend, carries on a banking business. This is considered to be ultravires the memorandum.
Reason (R): The borrowing and lending should be related to the main (construction) activity only.
Ans. (a)

28. Assertion (A): A minor can be admitted to the benefits of partnership with the consent of all the partners.
Reason (R): His liability is confined only to the extent of his share in the profits and property of the firm.
Ans. (a)

29. Assertion (A): The auditor should examine the objects Clause of the Memorandum of Association.
Reason (R): This would ensure that the company is carrying on business as specified in the Memorandum of Association.
Ans. (a)

30. Assertion (A): The auditor of a proprietary firm need not be bound by professional propriety.
Reason (R): Proprietary auditor is responsible only to the person(s) who appoint(s) him.
Ans. (d)

31. Assertion (A): The main purpose of auditing is to verify that the accounts have been prepared according to the principles of accounting and to see whether the financial statements so prepared reflect a true and fair view of the state of affairs of a business.
Reason (R): Auditing starts after the completion of recording to transactions in the books of account.
Ans. (b)

32. Assertion (A): The auditor should visit the particular concern at intervals and check the book of accounts.
Reason (R): Some precaution is required to be taken by the auditor to avoid weaknesses of. continuous audit.
Ans. (b)

33. Assertion (A): Return on investment is the ultimate relationship between earnings and investment.
Reason (R) Sales play the pivotal role in such a relationship as sales govern the earnings and investments in turn govern sales.
Ans. (b)

34. Assertion (A): In accounting, a distinction is made between the business and the owner.
Reason (R): Accounting concepts are based on objectivity and not on subjectivity.
Ans. (a)

35. Assertion (A): The investors in the capital market have been showing a decisive shift in favour of fixed income instruments.
Reason (R): The debt instruments have active secondary market.
Ans. (b)

36. Assertion (A): Materiality concept refers to the state of ignoring relatively small items and values from accounts.
Reason (R): The effort involved in allocating the cost of a small item over a long period should be justified in terms of the benefit 4erived from this operation. Therefore cost of such items may be treated as expenses for the period in which they are acquired.
Ans. (a)

37. Assertion (A): In a joint stock company, the shareholders have very restricted powers.
Reason (R): The personality of the company is separate and distinct from the humans who compose it.
Ans. (a)

38. Assertion (A): Prediction of share price movement in a stock exchange s almost impossible.
Reason (R): Speculative activity has made the fundamentals of share quite insignificant.
Ans. (c)

39. Assertion (A): The floating policy protects the policy holders against errors and omissions.
Reason (R): Goods are insured even if the policy holder fails to report that goods have already been forwarded from the place of shipment:
Ans. (c)

40. Assertion (A): Social responsibility of business is an idea that cannot be put into practice by most of the business.
Reason (R): There is no norm to measure the extent of responsibility forwards each segment of the society.
Ans. (d)


41. The fundamental accounting equation:
Assets = Equities, is the formal expression of:
(a) Dual aspect concept
(b) Matching concept
(c) Going concern concept
(d) Money Measurement concept
Ans. (a)

42. Which of the following pairs are correctly matched?
1. Business entity : Accounting standard
2. Stock Valuation : Consistency
3. Capital : Drawings
4. Going concern : Assumption
Select the correct answer using the codes given below Codes:
(a) 2, 3 and 4
(b) 1, 2, and 3
(c) l, 2 and 4
(d) 1, 3 and 4
Ans. (c)

43. Money Measurement concept of Accounting Theory is based on the assumption that the value of money will:
(a) remain constant
(b) fluctuate
(c) decrease
(d) go up
Ans. (a)

44. Given that:
M = Opening Stock
N Purchase
O = Closing Stock
P = Cost of goods sold
The correct equation will be:
(a) M-N0+P
(b) M-OP-O
(c) M—O = P—N
(d) P—M = N + O
Ans. (c)

45. An asset is purchased for Rs. 50,000 on which depreciation is to be provided annually according to the Straight Line Method. The useful life of the asset is 10 years and the residual value is Rs. 10,000. The rate of depreciation is:
(a) 20%
(b) 18%
(c) 10%
(d) 8%
Ans. (c)

46. An asset in never reduced to zero in the:
(a) Fixed installment method
(b) Reducing balance method
(c) Annuity Method
(d) Sum of year’s method
Ans. (b)

47. The main objective of providing depreciation is to:
(a) Create secret Reserves
(b) Reduce the book value of assets
(c) Value the assets properly
(d) Allocate cost of the assets
Ans. (c)

48. Revaluation method of depreciation is generally used in the case of:
(a) Plant
(b) Land and building
(c) Stock
(d) Loose tools
Ans. (d)

49. Rate of consumption of materials is one of the most important factors while fixing:
(a) maximum level
(b) maximum level and recorder level
(c) minimum level and reorder level
(d) maximum level, minimum level and re-order level
Ans. (d)

50. During a period of declining prices, which one of the following inventory pricing methods will result in lower cost of goods scold?
(a) FIFO
(b) LIFO
(c) Simple average method
(d) Inflated price method
Ans. (b)