CA CPT JUNE 2017
Session – I
Part A – Fundamentals of Accounting
Q. 1 A businessman purchased goods for Rs 25,00,000 and sold 80% of such goods during the accounting year ended 31st March, 2009. The market value of the remaining goods was Rs 4,00,000. He valued the closing inventory at cost. He violated the concept of
A. Money measurement
B. Conservatism
C. Cost
D. Periodicity
Q. 2 A change in accounting policy is justified.
A. To comply with accounting standards.
B. To ensure more appropriate presentation of the financial statement of the enterprise.
C. To comply with law.
D. All of the above.
Q. 3 Which of the following are not the advantage of accounting standard
A. It reduces confusing variation in the accounting treatments used to prepare financial statements.
B. Some information are not required by the law. To disclose standards may call for
disclosure beyond that required by law.
C. Financial statements become comparable.
D. It leads to confusion in deciding about the accounting policy.
Q. 4 Goods worth Rs. 2,000 were distributed as free samples in the market. The journal entry will be _________
A. Drawing Dr. – 2,000 To purchase A/c – 2,000
B. Sales A/c Dr. – 2,000 To cash A/c – 2,000
C. Advertisement A/c Dr. – 2,000 To purchase A/c – 2,000
D. No entry
Q. 5 Johny purchased goods of Rs. 5,000 for cash at 20% trade discount and 5% cash discount. Purchases A/c is to be debited by Rs. _________
A. 3,800
B. 5,000
C. 3,750
D. 4,000
Q. 6 In the ledger an account shows credit balance at the end of the year. This balance is shown as _______
A. To balance c / d on the debit side.
B. By balance c / d on the credit side.
C. To balance b / d on the debit side.
D. By balance b / d on the credit side.
Q. 7 A purchase return of Rs. 2,000 has been wrongly debited to sales Returns A/c. Due to this error, in the trial balance ________
A. The total of debit balance will be Rs. 2,000 more than the total of credit balances.
B. The total of credit balances will be Rs. 2,000 more than the total of debit balances.
C. The total of debit balances will be Rs. 4,000 more than the total of credit balances.
D. The total of credit balances will be Rs. 4,000 more than the total of debit balances.
Q. 8 Stamps duty for the purchase of a property is debited to Legal Expenses A/c. This is an error of _______
A. Commission
B. Omission
C. Principle
D. Not an error
Q. 9 In the course of locating the reason for the difference in the trial balance, it has been found that an amount received from a customer has been debited to his account and a purchase from a supplier has been wrongly entered in the ledger as Rs. 17,720 instead of 17, 270. These errors may be classified as _________________
A. Errors of commission
B. Errors of omission
C. Errors of principle
D. Both errors of commission and omission
Q. 10 A machinery was purchased for Rs. 1,00,000. Expenses incurred were – Brokerage 2%; Repairs Rs. 1,500; Transport Rs. 3,000; Trial run Rs. 7,000; Installation Rs. 4,500. After operating the machine for 11 months an amount of Rs. 8,000 was spent on repairs. Cost of machinery to be debited to machinery A/c will be Rs.
A. 1,18,000
B. 1,26,000
C. 1,00,000
D. 1,02,000
Q. 11 A company has filed a legal suit against a competitive company claiming Rs. 5,00,000 for infringement of patent rights. The outcome of the legal suit is uncertain This claim may be treated as __________
A. Income
B. Contingent Asset
C. Provision
D. Contingent Liability
Q. 12 When outflow of economic resources to settle an obligation is not probable or the amount expected to be paid to settle the liability cannot be measured with sufficient reliability, it is called
A. Provision
B. Contingent Liability
C. Secured loan
D. Unsecured loan
Q. 13 A company deals in electronic goods (AC, Fridge, TV, etc) Purchases to A/c and install in its showroom. The expenses will be recorded in.
A. Drawing A/c
B. Purchase A/c
C. Fixed A/c
D. P & L A/c
Q. 14 Bank reconciliation is used to show the difference between the balance of ______
A. Cash columns of cash book and passbook
B. Bank columns of cashbook and passbook
C. Cash columns of cashbook and bank columns The cashbook
D. None of the above
Q. 15 Debit balance as per Cash book of Axe Ltd. As on 31.03.2016 is Rs. 2,000. Cheques deposited but not cleared amounts to the Rs. 100 and cheques issued but not presented of Rs. 150. The bank allowed interest amounting Rs. 100 and collected dividend Rs. 50 on behalf of Axe Ltd. Balance as per Passbook should be
A. Rs. 1,700
B. Rs. 2,000
C. Rs. 2,100
D. Rs. 2,200
Q. 16 Average inventory = Rs 30,000. Closing inventory is Rs 5,000 more than opening inventory will be
A. Rs 32,500
B. Rs 35,000
C. Rs 30,000
D. Rs 60,000
Q. 17 Cost of an asset = Rs 2,00,000
Rate of Depreciation = 10% under WDV method
Value of the asses at the end of 2nd year will be Rs ________
A. 1,80,000
B. 1,62,000
C. 1,48,000
D. 1,50,000
Q. 18 Depletion method of charging depreciation is adopted for which of the following assets?
A. Plant and machinery
B. Wasting assets like mines and quarries
C. Buildings
D. Trademarks
Q. 19 If goods are sold but not delivered to the customer, they will be included in _________
A. Closing inventory
B. Goods in transit
C. Sales
D. Sales in return
Q. 20 At the time of finalization of Financial statements, Bad debts written of are to be transferred to
A. Provisions
B. Reserves
C. Capital A/c
D. Profit and Loss A/c
Q. 21 From the following find out the correct equation
A = Opening inventory
B = Purchases
C = Closing inventory
D = Cost of goods sold
A. D – A = B + C
B. A + B = D – C
C. A – C = D + B
D. A + B = C + D
Q. 22 General Manager gets 6% commission on net profit after charging such commission. Gross profit Rs. 60,000 and other indirect expenses other than manager’s commission are Rs. 7,000. Commission amount will be
A. Rs. 3,000
B. Rs. 3,396
C. Rs. 3,500
D. None of the above
Q. 23 A decrease in provision for doubtful debts would result in:
A. An increase in liabilities
B. A decrease in working capital
C. A decrease in net profit
D. An increase in net profit
Q. 24 An amount of Rs. 68,000 was paid on 3/3/17 for advertisement in a newspaper. This was published in the newspaper on 3/4/17. This expenditure will be shown as _____
A. Liability in the balance sheet on 31/3/17
B. Prepaid expenses on the assets side of balance sheet on 31/3/17
C. An expenses in the profit and loss A/c for the year ended 31/3/17
D. None of the above
Q. 25 Opening capital = Rs. 5,00,000
Drawings = 1,20,000
Assets = 8,50,000
Liabilities = Rs. 75,000
Closing capital and profit will be Rs. _____
A. 8,50,000 & 3,95,000
B. 7,75,000 & 3,95,000
C. 7,75,000 & 1,55,000
D. 8,50,000 & 3,35,000
Q. 26 While finalizing the current year’s profit, the company realized that there was an error in the valuation of Closing inventory of the previous year. In the previous year, closing inventory was valued more by Rs. 45,000. As a result
A. Previous year’s profit is overstated and current year’s profit is also overstated
B. Pre I year’s profit is understated and current year’s profit is overstated
C. Previous year’s profit is understated and current year’s profit is also understated
D. Previous year’s profit I overstated and current year’s profit is understated
Q. 27 Decrease in the balance of trade receivables results in _________
A. Increase in cash
B. Increase in liabilities
C. Increase in capital
D. Increase in loan
Q. 28 If an individual asset is increased, there will be a corresponding
A. Increase of another asset or increase of capital
B. Decrease of another asset or increase of liability
C. Decrease of specific liability or decrease of capital
D. Increase of drawings and liability
Q. 29 A bill of Rs. 40,000 was discounted by P with his bank for Rs. 39,000. At maturity, the bill returned dishonoured, noting charges amounted to Rs. 500. How much amount will the bank deduct from P’s bank balance at the time of such dishonor?
A. Rs. 40,000
B. Rs. 39,500
C. Rs. 39,000
D. Rs. 40,500
Q. 30 X draws a bill on 1/04/16 for Rs. 60,000 for 3 months. Y accepted it 8/04/16. The bill was discounted on 2/05/16 @ 12% p.a. The amount of discount will be Rs. ____&___
A. 1800
B. 1200
C. 600
D. 1300
Q. 31 A draws a bill on B for Rs. 1,00,000 for 3 months. The bill was discounted with bank at 15% p.a. Half of the proceeds are remitted to B. The amount received by B will be Rs. _____
A. 33,334
B. 25,000
C. 50,000
D. 48,125
Q. 32 While preparing BRS, Mr. X found that a bill of exchanges for Rs. 5,000 which was discounted with bank was dishonoured and the bank paid noting charges of Rs. 100. The entry required in the books of X will be _________
A. Customer A/c Dr. 5,100 To Bank A/c – 5,100
B. Customer A/c Dr. 5,000 To Bank A/c Dr. 5,000 To bank charges A/c – 100
C. Customer A/c Dr. 5,000 Bank charges A/c – Dr. 100 To Bank A/c – 5,100
D. Customer A/c Dr. 5,100 To bank A/c – 5,000 To bank charges A/c – 100
Q. 33 If consignor draws a bill on consignee and discounted it with the banker, the discounting charges will be debited in:
A. General P/L A/c
B. Consignment A/c
C. Consignee A/c
D. Trade receivables A/c
Q. 34 Rishi of Kolkata consigned goods costing Rs. 50,000 to Zenith of Mumbai at cost + 20%. 10% of the goods were lost in transit. 70% of the goods received were sold at 15% above invoice price. Amount of sales will be Rs. _____?
A. 378000
B. 39,600
C. 43,470
D. 44,370
Q. 35 Mr. X consigned 5,000 boxes of goods to Mr. Y @ Rs. 250 each. He paid freight Rs. 3,500 and insurance Rs. 1,500. Y paid expenses of Rs. 5,000. He sold 3/5 of the boxes @ Rs. 3,000 each. The remaining boxes were taken by Y at cost rate. The value of inventory taken by Y will be Rs. ______
A. 5,00,000
B. 5,02,000
C. 6,00,000
D. None of the above
Q. 36 State which of the following statements is true?
A. Memorandum joint venture account is prepared to find out profit on venture
B. Memorandum joint venture account is prepared to find out amount due from coventure
C. Memorandum joint venture account is prepared when separate sets of books is maintained
D. In memorandum joint venture account only one venture’s transaction are recorded
Q. 37 Which of the following statements in not true?
A. Joint venture is a growing concern
B. Joint venture is terminable in nature
C. Joint venture does not follows accrual basis of accounting
D. The co-venturers share the profit in agreed ratio
Q. 38 X and Y entered into a joint venture to underwrite the shares of K Ltd. At a commission of 5%. K Ltd. Made an issue of 1,00,000 equity shares of Rs. 10 each. 90% of the issue is subscribed by the public. The profit sharing between X and Y is 2:3. The balance unsubscribed shares are purchased by X and Y in profit sharing ratio. How are shares purchased by Y?
A. 4,000
B. 6,000
C. 10,000
D. 90,000
Q. 39 Goods of Rs. 800 (sales price) sent on sale on approval basis were included in the sales book. The profit included in the sales was 25% on cost. Inventory with the party will increase our closing inventory by
A. Rs. 600
B. Rs. 640
C. Rs. 680
D. Rs. 700
Q. 40 Interest on capital will be paid to the partners if provided for in the agreement but only from ________:
A. Current year’s profits.
B. Reserves.
C. Accumulated profits.
D. Goodwill
Q. 41 P and Q are the partners in a firm sharing profits and losses in the ratio 3:2 with capitals of Rs. 1,50,000 and Rs. 1,00,000 respectively. They admitted R as a partner with Rs. 90,000 as capital for 1/4th share in the profits of the firm. They adjust the capital of other partners according to R’s capital and his share in the business. How much cash will be brought in by P?
A. Rs. 8,000
B. Rs. 9,000
C. Rs. 12,000
D. Rs. 10,000
Q. 42 Outgoing partners are compensated for parting with the firm’s future profit in favour of remaining partners. In what ratio do the remaining partners contribute to such a compensating amount?
A. Gaining Ratio
B. Compensating Ratio
C. Sacrificing Ratio
D. Profit Sharing Ratio
Q. 43 Tom and Jerry are partners in a firm sharing the profits and losses in the ratio of 3:2. Tom’s capital is Rs. 70,000 and Jerry’s capital is Rs. 50,000. They agreed to take Shiva as a new partner for 1/5th Share in future profits. Calculate the amount of capital to be brought in by Shiva.
A. Rs. 16,000
B. Rs. 18,000
C. Rs. 80,000
D. Rs. 30,000
Q. 44 X, Y and Z are partners in a firm sharing profits and losses in the ratio 5:4:3. Z died on 30/09/16. Profit for the year 2016-17 was RS. 40,000. What is the share of Z in the profits of the firm till the date of his death?
A. Rs. 6,000
B. Rs. 5,000
C. Rs. 4,500
D. Nil
Q. 45 In case of death of a partner, the amount of JLP received by the firm will be distributed _________
A. To all the partners as per their old profit sharing ratio
B. To all the continuing partners as per their new profit sharing ratio
C. To all the partners as per their sacrificing ratio
D. To all the partners as per their gaining ratio
Q. 46 X and Y are partners in a firm sharing profits and losses in the ratio of 3:2. Z was admitted as a new partner for 1/5th share of the future profits. Z takes his entire share from X only. The new profit sharing ratio of X, Y and Z will be
A. 12:8:4
B. 2:2:1
C. 1:1:1:
D. None of these
Q. 47 Capital employed = Rs. 6,00,000
Average profit = Rs. 1,05,000
Normal rate of return = 15%
Value of goodwill under the capitalisation method will be Rs.
A. 1,00,000
B. 90,000
C. 1,10,000
D. None of these
Q. 48 A partnership firm maintains its accounts on a calendar year basis. B, one of the three partners died on 31/03/10. The profit of the firm for the year 2009 was Rs. 75,000 which was distributed among the partners equally. The share of B in the profits of the firm till the date of his death on the basis of previous year’s profit will be Rs.
A. 25,000
B. 6,250
C. 18,750
D. 37,500
Q. 49 When shares are forfeited, the share capital A/c is debited with _________ and the share forfeited A/c is credited with _______
A. Paid-up capital of shared forfeited; called up capital of shares forfeited
B. Called up capital of shared forfeited; calls in arrear of shares forfeited
C. Called up capital of shares forfeited; amount received on shares forfeited
D. Calls arrears of shared forfeited; amount received on shares forfeited
Q. 50 When shares are issued to promoters for the services offered by them, the A/c that will be debited with the nominal value of shares is _____________
A. Preliminary expenses
B. Good will
C. Asset A/c
D. Share capital
Q. 51 Discount on issues of debentures is a ___________
A. Revenue loss to be charged in the year of issue
B. Capital loss to be written off from capital reserve
C. Capital loss to be written off over the tenure of the debentures
D. Capital loss to be shown as goodwill
Q. 52 Which of the following can be utilized for redemption of preference shares?
A. The proceeds of fresh issue of equity shares
B. The proceeds of issues of debentures
C. The proceeds of issues of fixed deposit
D. All of the above
Q. 53 A company issued 6,000, 10% debentures of Rs. 100 each at a discount of 10% repayable after 5 years at a premium of 5%. Total loss on issue of debentures will be Rs. ________
A. 90,000
B. 30,000
C. 60,000
D. 75,000
Q. 54 M/s VSI Ltd. Forfeited 300equity shares of Rs. 10 issued as per for non-payment of Rs. 4 per share by the holder. These shares are reissued at Rs. 5 per share as fully paid. What is the amount to be transferred to capital reserve A/c?
A. Rs. 300
B. Rs. 500
C. Rs. 600
D. Rs. 800
Q. 55 A company has forfeited 3,000 equity shares of Rs. 10 each. For non-payment of Rs. 3 per share on which Rs. 9 called up. On forfeiture, Share capital A/c is debited by Rs. _________
A. 27,000
B. 30,000
C. 22,000
D. 9,000
Q. 56 If debentures are issued as collateral security the journal entry will be _______
A. Debit debenture suspense A/c and Credit Debenture A/c
B. Debit Cash A/c and Credit Loan A/c
C. Debit Cash A/c and Credit Debentures A/c
D. Debit debenture Securities A/c and Credit Cash A/c
Q. 57 M/s X Ltd. Took over the assets of Rs. 4,60,000 & liabilities of Rs. 30,000 of B Ltd. For a purchase consideration of Rs. 4,40,000. The company issued 10% debentures of Rs. 100 each at a premium of 10% towards the purchase consideration no. of debentures issued will be ________
A. 4,2000
B. 4,000
C. 3,000
D. 4,400
Q. 58 Preferences shares of Rs. 4,00,000 were redeemed at a premium of 2% by the issue of equity shares of Rs. 2,00,000 at a premium of 12%. The amount to be transferred to CCR will be Rs. _________
A. 2,84,000
B. 2,04,000
C. 1,84,000
D. 2,00,000
Q. 59 Capital at the end of the year – Rs. 5,00,000
Drawings during the year – Rs. 50,000
Profits for the year – Rs. 1, 00,000
Interest on opening capital @ 10% per annum will be
A. 50,000
B. 5,50,000
C. 45,000
D. 55,000
Q. 60 Fluctuating Capital A/c is credited by ________
A. Interest on partner’s capital
B. Partner’s share in profit of the year
C. Partner’s salary or remuneration
D. All of the above
Part B – Mercantile Laws
Q. 61 Right in rem means __________
A. Right to sale
B. Right to sue buyer for amount unpaid
C. Right to enjoy the goods against whole world
D. Right to buy the goods
Q. 62 A voidable contract _________
A. Can be enforced by both the parties
B. Can be enforced by one or more of the parties only
C. Can be enforced at the option of law
D. Can not be enforced by both the parties
Q. 63 The communication of acceptance is complete as against the offeror
A. When acceptance comes to the knowledge of offeror
B. When it is put into transmission and leaves his power to reject
C. When acceptance is reached to offeror
D. None of the above
Q. 64 Proposal may be:
A. General
B. Specific
C. Implied or express
D. Any of the above
Q. 65 An offer made without any words spoken or written is ______
A. Specific
B. Cross offer
C. Implied offer
D. Counter offer
Q. 66 The term quid pro quo is applied in relation to
A. Consideration
B. Capacity of parties
C. Free consent
D. Legality of object
Q. 67 Which of the following is valid _________
A. Agreement made out of natural love and affection
B. A promise to pay time barred debt
C. Compensation for past voluntary service
D. All of the above
Q. 68 If the agreement consist of legal and illegal parts, and legal part is separable from illegal part, then legal part is ____________
A. Valid
B. Void
C. Voidable
D. None of these
Q. 69 A lunatic person means:
A. Insolvent person
B. Person of the unsound mind
C. Person disqualified by law
D. Alien enemy
Q. 70 ‘Ignorance of law is no excuse’ in case of ______________________
A. Mistake as to law of land
B. Foreign
C. Unilateral mistake
D. Bilateral mistake
Q. 71 The term consensus-ad-idem means:
A. General consensus
B. Reaching an agreement
C. Meeting of mind upon the same thing in same sense
D. All of the above
Q. 72 A person who is in a position to dominate will of the other, it is ________
A. Fraud
B. Misrepresentation
C. Undue influence
D. All of the above
Q. 73 Finder of lost goods should ___________
A. Trace the true owner
B. Take care of the goods
C. Not mix with his own goods
D. All of the above
Q. 74 A promises to pay B a sum of Rs. 10,000/- if it rains and in return B promises to pay Rs. 10,000/- to A if it does not rain. It is a/an_______
A. Uncertain agreement
B. Wagering agreement
C. Contingent contract
D. Valid agreement
Q. 75 An agreement to remain unmarried is
A. Valid
B. Void
C. Voidable
D. Unenforceable
Q. 76 X, Y and Z jointly promised to pay Rs. 75,000/- to D. Z is compelled to pay the whole amount. Then Z _________
A. Can recover Rs. 25,000/- each from X and Y
B. Can recover Rs. 50,000/- from X
C. Can recover Rs. 50,000/- from Y
D. Can not recover anything from X and Y
Q. 77 A sold goods to B at a price of Rs. 12,000/-. Towards payment, B gave a post dated cheque of Rs. 12,000/-. Here ________
A. A is bound by the payment
B. A is not bound to accept the cheque
C. A is bound to accept the cheque at the request of B
D. None of these
Q. 78 X owes Rs. 15,000/- to Y and he (X) pays Rs. 12,000/- in full and final settlement of the outstanding due. This is called ____________
A. Novation
B. Alteration
C. Remission
D. Cancellation
Q. 79 Rescission of contract means:
A. Cancellation of contract
B. Alteration of terms
C. Minor changes
D. All of the above
Q. 80 Contract is discharged by ______________
A. Performance of contract
B. Mutual agreement
C. Breach of contract
D. Any of the above
Q. 81 Quantum meruit literally means __________
A. As much as is merited
B. As much as is credited
C. As much as no work done
D. None of the above
Q. 82 X, Y and Z are partners. X retired without giving public notice. Later on Y and Z incurred liabilities with DLF Co Ltd. Then __________
A. X is liable along with Y an Z
B. X only is liable
C. Y and Z are only liable
D. None of these
Q. 83 A partner formed for an undertaking/adventure is ____________
A. Partnership at will
B. Particular partnership
C. Partnership for fixed term
D. None
Q. 84 Which of the following statements about registration of firm is not true?
A. It must be done at the time of formation
B. It may be done at the time of formation
C. It may be done before filing suit against third party
D. It may be done at any time after it’s formation
Q. 85 Public notice is not necessary in case of _________
A. Admission of partner
B. Expulsion partner
C. Dissolution of partnership form
D. All of the above
Q. 86 A firm is the name of ___________
A. The partners
B. The minors in the firm
C. The business under which the firm carries on business
D. The collective name under which it carries on business
Q. 87 A, B and C are partners. B who took the house on rental basis for the firm failed to pay the rent. The landlord can recover the rent from _____________
A. B only
B. A and C only
C. B and C only
D. All partners
Q. 88 X and Y entered into a partnership agreement where X has to take all profits and Y shall receive wages. Here:
A. X and Y are not partners
B. X and Y are sub partners
C. X and Y are partners
D. X and Y are active partners
Q. 89 “Just and equitable” ground for dissolution of firm by court is/are _________
A. Deadlock in management
B. Lack of substratum
C. No talking terms between partners
D. All of the above
Q. 90 In a partnership firm, X, a partner bought immovable property without the consent of other partners. Then X _________
A. Cannot recover any amount because it is not covered under implied authority
B. Can recover full amount from partners personally
C. Can recover the amount from firm because this act is within the scope of implide authority of partners
D. None of the above
Q. 91 Which of the following is not a type of document of title to goods?
A. Bill of lading
B. Railway receipt
C. Dock warrant
D. None of these
Q. 92 A person appointed to bid on behalf of seller is called ___________
A. Puffer
B. Auctioneer
C. Damper
D. Either (b) or (c)
Q. 93 Right of lien is ___________
A. Right of stoppage of goods in transit
B. Right to sub sale
C. Right to retain the goods
D. Right to resale
Q. 94 In case of specific goods in deliverable state, the sale is concluded ______________
A. When goods are delivered to buyer
B. When contract of sale in made by parties
C. When money is paid by buyer
D. When goods are delivered and money is paid
Q. 95 X purchased 10 dozen pencil sharpeners and when they are used, they are found to be blunt and not at all useful to sharpen pencils. Here is breach of ________
A. Condition as to wholesomeness
B. Condition as to merchantability
C. Condition as to quality or fitness
D. None of the above
Q. 96 Future goods are _____________
A. Identified at the time of sale
B. Produced after contract of sale
C. Identified by description at the time of sale
D. None
Q. 97 In relation to sale of goods, the Latin term ‘Nemodat quod non Habet ‘means ____________
A. Goods by estoppels
B. No one can pass a better title than he himself has
C. Sale by mercantile agent
D. Sale by finder if goods
Q. 98 In the event of insolvency of buyer before making the payment, but seller does not have right of lien, then the seller ________
A. Must deliver the goods to official receivers
B. Must resell the goods to any other
C. Must retain the goods for any other payment due from buyer
D. None of these
Q. 99 A sent wheat to B and B sent the wheat to mill. Here it is said that _______
A. B has accepted the wheat by express adoption
B. B has accepted the wheat by implied adoption
C. B has accepted the wheat by estoppels
D. None of the above
Q. 100 In case of breach if condition as to quality or fitness ___________
A. Buyer can sue the seller
B. Buyer can sue for damages
C. Buyer can refuse to pay the price
D. Buyer can return the goods
Session – II
Part A – General Economics
Q. 101 Under perfect competition a firm is described as
A. A price maker and not price taker
B. Price taker and not price marker
C. Neither price maker nor price taker
D. None of these
Q. 102 Which of the following statements is incorrect?
A. Under monopoly there is no difference between a firm and an industry
B. A monopolist may restrict the output and raises the price
C. Commodities offered for sale under a perfect competition will be heterogeneous
D. Product differentiation is peculiar to monopolistic competition
Q. 103 For a firm to become profitable it should expand output whenever?
A. Marginal revenue is equal to marginal cost
B. Marginal revenue is Les than marginal cost
C. Marginal revenue is greater than marginal cost
D. Average revenue is greater than average cost
Q. 104 In oligopoly, when the industry is dominated by one large firm which is considered as leader of the group. This is called:
A. Open oligopoly
B. Collusive oligopoly
C. Partial oligopoly
D. Pure oligopoly
Q. 105 Under which of the following forms of market structure does a firm have no control over the price of its product?
A. Monopoly
B. Monopolistic competition
C. Oligopoly
D. Perfect competition
Q. 106 Which of the following is the objective of price discrimination?
A. Maintaining huge stocks
B. To earn maximum profits
C. Enjoying the economies of scale
D. Securing equity through pricing
Q. 107 Which of the following pairs of goods is an example of substitute?
A. Tea and sugar
B. Tea and coffee
C. Pen and ink
D. Shirt and trouser
Q. 108 Which of the following is not a part of effective demand?
A. Desire
B. Ability to purchase
C. Willingness to use the resource for that purpose
D. Supply of commodity
Q. 109 If there is a 50% rise in price and there is no change in quantity demanded, then the elasticity of demand is?
A. Zero
B. Infinity
C. Equal to 1
D. Greater than 1
Q. 110 If a good is luxury, its income elasticity of demand is:
A. Positive and less than 1
B. Negative but greater than -1
C. Positive and greater than 1
D. Zero
Q. 111 In case of an inferior good, the income elasticity of demand is:
A. Positive
B. Negative
C. Zero
D. Infinite
Q. 112 Which of the following is not an assumption of law of DMU?
A. Different units of commodities are standardized
B. Continuous consumption
C. Different units of commodities must be similar
D. The assumption is that consumer is not normal and rational
Q. 113 Indifference curve is convex to the origin due to
A. Increasing marginal rate of substitution
B. Diminishing marginal rate of substitution
C. Constant marginal rate of substitution
D. None of the above
Q. 114 When the price of a commodity increases from Rs. 200 to Rs. 250 and consequently the quantity supplied increases from 1000 units to 1100 units. What is the coefficient of elasticity of supply?
A. 4.0
B. 0.4
C. 5.0
D. 0.5
Q. 115 Which of the following is not a determinant of supply?
A. Price of good concerned
B. Price of related goods
C. Technology improvements
D. Customs and Traditions
Q. 116 In Economics _________ refers to creating utility for goods and services?
A. Consumption
B. Production
C. Distribution
D. None of the above
Q. 117 C. W. Cobb and Douglas of the U. S. A. studied the production function of the American _________ industries:
A. Manufacturing
B. Construction
C. Agriculture
D. None of these
Q. 118 When supply increases, the supply curve shifts towards right. The increase in supply denotes a shift in the supply curve to the right. If there is increase in supply without change in demand equilibrium price will _______ and the equilibrium quantity will increases:
A. Falls
B. Constant
C. Rise
D. None of these
Q. 119 Which of the following markets are classified on the basis of nature of the transaction?
A. Local and Regional markets
B. Retail and Wholesale
C. Regulated and Unregulated
D. Spot market and Future market
Q. 120 At present what is the multidimensional poverty index?
A. 0.384
B. 0.253
C. 0.554
D. 0.283
Q. 121 Most of the unemployment in India is __________
A. Voluntary
B. Structural
C. Frictional
D. Technical
Q. 122 If in a population of 1000 people, 400 people are in the labour force, 392 are employed, what is the unemployment rate?
A. 2%
B. 8%
C. 6%
D. 4%
Q. 123 Which of the following methods is based on collection and analysis of facts?
A. Inductive
B. Deductive
C. Scientific
D. Experimental
Q. 124 Production possibilities curve is also known as:
A. Demand curve
B. Supply curve
C. Indifference curve
D. Transformation curve
Q. 125 Which economic system is described by Schumpeter as “capitalism in the oxygen tent”?
A. Laissez faire economy
B. Command economy
C. Mixed economy
D. Agrarian economy
Q. 126 NNP (FC) plus _______ is equal to NNP (MP)
A. Subsides
B. Indirect taxes plus subsidies
C. Indirect taxes minus subsidies
D. Indirect taxes
Q. 127 Nowadays, in the long run the modern firm faces __________ cost curve when technology changes.
A. U-Shaped
B. Boat-Shaped
C. L-shaped
D. J-Shaped
Q. 128 The average cost of producing 9 units of a commodity is Rs. 200 and the fixed cost is Rs. 630. What amount of average total cost is made up of variable cost?
A. 130
B. 120
C. 300
D. 220
Q. 129 _________ cost remains fixed over a certain range of output, but suddenly jump to a new higher level when output goes beyond a given limit.
A. Semi-variable cost
B. Variable cost
C. Fixed cost
D. Stair-step variable cost
Q. 130 The cost of one thing in terms of the alternative given up is known as
A. Production cost
B. Physical cost
C. Real cost
D. Opportunity cost
Q. 131 Find out AVC of 3 units:
| Unit | 0 | 1 | 2 | 3 |
| TC | 140 | 180 | 280 | 380 |
A. 80
B. 200
C. 300
D. 240
Q. 132 Which of the following statements is correct?
A. In India the tertiary sector contributes maximum to the GDP
B. India is basically a socialist economy
C. The distribution of income and wealth in India is quite equitable
D. None of the above
Q. 133 Water supply and construction comes under which sector?
A. Primary
B. Secondary
C. Tertiary
D. Social
Q. 134 Which programme was launched in rural India to provide accessible, affordable and quality health services in 2005.
A. National Health Programme
B. Pradhana Mantri Swasthiya Yojana
C. National Rural Health Mission
D. National programme for Health care of the Elders
Q. 135 In order to enhance access to secondary education and improves its quality _______ was introduced in 2009
A. Rashtriya Madhyamik Shiksha Abhiyan
B. Rashtriya Uchchatar Shiksha Abhiyan
C. Sarva Shiksha Abhiyan
D. National Literacy Mission
Q. 136 Which of the following is not a function of RBI?
A. Publication of statistical data related to banks
B. Custodian of foreign exchange reserves
C. Supervising the commercial banks
D. Creation of credit for development
Q. 137 An increase in Reverse Repo rate causes?
A. Banks transfers more fund to RBI
B. It can cause money drawn out of banking system
C. Both (a) and (b)
D. None of these
Q. 138 Commercial Banks in India included
A. Schedule banks which are included in second schedule of RBI Act 1934
B. Non scheduled banks which are not included in second schedule of RBI Act 1934
C. Both (a) and (b)
D. None of these
Q. 139 Money in dynamic sense means:
A. It directs economic trends
B. It encourages division of labour
C. It smoothens transformation of savings into investments
D. All of the above
Q. 140 What is the base year considered for WPI?
A. 2004-05
B. 2005-06
C. 2006-07
D. 2007-08
Q. 141 Which of the following objectives are taken to promote globalization?
A. Convertibility of rupee and import liberalization
B. Import substitution and export promotion
C. Import and export promotion policies
D. Demonetisation of Rs. 500 and Rs. 1000 notes
Q. 142 Which is not included in the World Bank?
A. Asian Development Bank
B. International Development Association
C. Multilateral Investment Guarantee Agency
D. International Center for Settlement of Investment Disputes
Q. 143 Which of the following committees modified direct and indirect taxes?
A. Chelliah Committee
B. Booth Lingam committee
C. Booth Lingam committee and Chelliah committee
D. C. Rangararajan committee
Q. 144 Debt service ratio means
A. Principal and interest to external exports
B. Principal to net trade
C. Total external borrowings to net foreign trade
D. Interest to loans
Q. 145 ________________ measures that part of government expenditure which is financed by borrowings
A. Budget deficit
B. Fiscal deficit
C. Public debt
D. Induced expenditure
Q. 146 Problem of agricultural system in India:
A. Over irrigation facilities
B. Over dose of fertilizers
C. Slow and uneven growth
D. Less people are employed in agriculture
Q. 147 Which of the following may be attributed for fast growth of the service sector in India?
I. Technical, structural changes have made it more efficient to outsource certain services since they were once produced within the industry.
II. It has been noticed the elasticity of income for services is greater than 1.
III. Revolution in IT has made it more possible to deliver services over long distances at reasonable cost.
IV. Reform in certain segments in infrastructural services has been contributed to growth of services:
A. I, ii
B. i, iii
C. i, ii, iii
D. i, ii, iii, iv
Q. 148 Infrastructural development will be due to development of which industries:
A. Electricity, Mining and Manufacturing
B. Electricity and Mining
C. Electricity and Manufacturing
D. Manufacturing and MIning
Q. 149 Supply curve will shift towards right due to:
A. Improvement in technology
B. Increase in population
C. Increase in price of factors of production
D. None of these
Q. 150 What is the central problem of economics?
A. To allocate scarce resources in such a manner that society’s unlimited needs are satisfied as well as possible
B. To allocate unlimited resources in such a manner that society’s limited needs are satisfied as well as possible
C. Both (a) and (b)
D. None of these
Part B – Quantitative Aptitude
Q. 151 If a:b = 2:3, b:c = 4:5, c:d = 6:7 then a:d is ______:
A. 24:35
B. 8:15
C. 16:35
D. 7:15
Q. 152 If a = √6+√5/√6-√5, b = √6-√5/√6+√5 then the value of 1/a^2 + 1/b^2 is:
A. 486
B. 484
C. 482
D. 500
Q. 153 log(13 + 23 + 33 + ………………………… + n3)
A. 2 log n + 2 log (n+1) – 2 log 2
B. log n + 2 log (n+1) – 2 log 2
C. 2 log n + log (n+1) – 2 log 2
D. None of these
Q. 154 If 3/x+y + 2/x-y = -1 and 1/x+y – 1/x-y = 4/3 then (x,y) is:
A. (2,1)
B. (1,2)
C. (-1,2)
D. (-2,1k
Q. 155 The sides of the equilateral triangle are shortened by 3 units, 4 units, 5 units respectively then a right angle triangle is formed. The side of the equilateral was:
A. 5
B. 6
C. 8
D. 10
Q. 156 If α, β be the root of x2 + x + 5 = 0, then α2/β + β2/α:
A. 16/5
B. 2
C. 3
D. 14/5
Q. 157 The equation of the curve which passes through the point (1,2) and has the slope 3x – 4 at any point (x,y) is:
A. 2y = 3x2 – 8x + o
B. y = 6x2 – 8x + 9
C. y = x2 – 8x + 9
D. 2y = 3x2 – 8x + c
Q. 158 The shaded region represented by the inequalities
4x + 3y ≤ 60, y ≥ 2x, x ≥ 3, x ≥ 0, y ≥ 0
(a)
(b)
(c)
(d) None of these
A. (a)
B. (b)
C. (c)
D. (d)
Q. 159 A dietitian wishes to mix together two kinds of food so that the vitamin content of the mixture is at least 9 units of vitamin A, 7 units of vitamin B, 10 units of vitamin C and 12 units of vitamin D. The vitamin content per kg of each food is shown below:
| # | A | B | C | D |
| Food I: | 2 | 1 | 1 | 2 |
| Food II: | 1 | 1 | 2 | 3 |
Assuming x kgs of food I is to be mixed with Y kgs of food II the situation can be expressed as:
A. 2x + y ≤ 9 x + y ≤ 7 x + 2y ≤ 10 2x + 3y ≤ 12 x > 0, y > 0
B. 2x + y ≥ 30 x + y ≤ 7 x + 2y ≥ 10 x + 3y ≥ 12 x ≥ 0, y ≥ 0
C. 2x + y ≥ 9 x + y ≤ 7 x + 2y ≤ 10 x + 3y ≥ 12 x ≥ 0, y ≥ 0
D. 2x + y ≥ 9 x + y ≥ 7 x + 2y ≥ 10 2x + 3y ≥ 12 x ≥ 0, y ≥ 0
Q. 160 The difference between simple and compound interest on a sum of Rs. 10,000 for 4 years at the rate of 10% per annum is ______
A. 650
B. 640
C. 641
D. 600
Q. 161 What sum should be invested at the end of every year so as to accumulate an amount of Rs. 7,96,870 at the end of 10 years at the rate of interest 10% compound annually, gives that A (10,0.1) = 15.9374
A. 40,000
B. 4,50,000
C. 4,80,000
D. 50,000
Q. 162 The future value of an annuity of Rs 1,500 made annually for 5 years at an interest rate of 10% compounded annually is _____ (Given that (1.1)^5 = 1.61051)
A. 9517.56
B. 9157.65
C. 9715.56
D. 9175.65
Q. 163 The number of arrangements that can be formed from the letters of the word
“ALLAHABAD”:
A. 7560
B. 3780
C. 30240
D. 15320
Q. 164 If 10C3 + 2 x 10C4 + 10C5 = 10C3 then the value of n = _______
A. 10
B. 11
C. 12
D. 13
Q. 165 The numbers of parallelograms that can be formed by a set of 6 parallel lines intersected by the another set of 4 parallel lines is ________:
A. 360
B. 90
C. 180
D. 45
Q. 166 If a, -3, b, 5, c are in A.P. then the value of c is:
A. -7
B. 1
C. 9
D. 13
Q. 167 The sum n terms of the series 1 + (1+3) +(1+3+5) + ………………..
A. n(n+1)(2n+1) / 6
B. n(n+1)(2n+1) / 3
C. n(n+1)(n+2) / 3
D. None of these
Q. 168 The sum of first 20 terms of a G.P. is 1025 times the sum of first 10 terms then the common ratio is:
A. 2
B. 2√2
C. 1/2
D. √2
Q. 169 In a class, 80 students speak Hindi, 60 students speak English and 40 students speak both Hindi and English. Then the number of students in the class is _____:
A. 100
B. 120
C. 140
D. 180
Q. 170 The Range of the function f is defined by f (x) = x /x2+1 is:
A. { x : -1/2 < x < 1/2 }
B. { x : -1/2 ≤ x < 1/2 }
C. { x : -1/2 ≤ x ≤ 1/2 }
D. { x : x > 1/2 or x < -1/2 }
Q. 171 If f(X) = x-1/X and g(X) = 1/1-x then fog (X)
A. x – q
B. x
C. 1 – x
D. -x
Q. 172 Solve the question in the given figure
A. e
B. 1/e
C. -e
D. -1/e
Q. 173 If f(x) = √1-x^2 / √1-x^3 is undefined at x = 1. What value must be assigned to f(x) at x = 1 such that f(x) is continuous at x = 1, is
A. 2/√3
B. √2/√3
C. √2/3
D. 2/3
Q. 174 If x = at^3 + bt^2 – t and Y = at^2 – 2xbt then dy/dx at t = 0 = ______
A. -2b
B. 2b
C. 1/2b
D. -1/2b
Q. 175 Solve the equation in figure
A. loge(5/2)
B. ½ loge(5/2)
C. loge5 – loge2
D. None of these
Q. 176 A company’s past 10 years average earnings was Rs. 40 crores. For obtaining the same average earnings for 11 years including these 10 years how much earnings (in Rs.) must be made by the company in the 11th year?
A. 40 crore
B. 40×10 / 11 crores
C. More than 40 crores
D. None of these
Q. 177 The rate of returns from three different shares are 100%, 200% and 400% respectively, the average rate of return will be ___________:
A. 350%
B. 200.33%
C. 200%
D. 300%
Q. 178 A person purchases 5 rupees worth of eggs from 10 different markets. You are to find the average no. of eggs per rupee for all the markets then together. What is the suitable form of average in this case?
A. AM
B. GM
C. HM
D. None of these
Q. 179 Which of the following is correct?
A. 3 X (mean – median ) = mean – mode
B. Mean – median = 3 X (mean – mode)
C. Mean – median = 2 X (mean – mode)
D. Mean – mode = 2 ( mean – median)
Q. 180 GM = 6, AM = 6.5 then HM =
A. 62 / 6.5
B. 6 / 6.5
C. 6.5 / 6
D. None of these
Q. 181 If AM and CV of a random variable X are 10 and 40 respectively, then the variance of (-15 + 3x/2)
A. 64
B. 81
C. 49
D. 36
Q. 182 Coefficient of correlation between X and Y is 0.6. If both X and Y are multiplied by -1. Then resultant coefficient of correlation is:
A. 0.6
B. -0.6
C. 1/0.6
D. None of these
Q. 183 Correlation between temperature and power consumption is:
A. Positive
B. Negative
C. Zero
D. None of these
Q. 184 Fisher’s index number does not satisfy:
A. Unit test
B. Circular test
C. Time reversal test
D. Factor reversal test
Q. 185 The monthly income of a person in the year 2014 was Rs. 8,000 and CPI was 160. The CPI is 200 in the year 2017. What will be the additional dearness allowance for the year 2107?
A. 2400
B. 2500
C. 2750
D. None of these
Q. 186 If Laspeyre’s index is L and Paasche’s index is P then Fisher’s index F is:
A. F = L x P
B. F^2 = L x P
C. F^2 = √L + P
D. F = 1 / L x P
Q. 187 If H0 is true but H1 is accepted then it is ____________ error:
A. Type I
B. Type II
C. Type III
D. None of these
Q. 188 A population comprises 5 units. The total number of all possible samples each of size 2 units that can be drawn from the population with replacement is:
A. 100
B. 15
C. 125
D. 25
Q. 189 The large, medium and small sized firms are sample for audit purpose then the sampling procedure is:
A. Random sampling
B. Stratified sampling
C. Systematic sampling
D. All of these
Q. 190 Sampling is preferred than population in which of the following case (s):
A. Testing of items is destructive in nature
B. Testing of items need costly equipment
C. Population is very large
D. All of these
Q. 191 If the two regression lines are x + y = 1 and x – y = 1 then x̅ and y̅ are:
A. 1, 0
B. 0, 1
C. 1, 1
D. None of these
Q. 192 Frequency density corresponding to a class interval is the ratio of _______ :
A. Class frequency to the class length
B. Class frequency to the total frequency
C. Class length to the class frequency
D. Class frequency to the cumulative frequency
Q. 193 The intersection point of less than ogive and more than ogive gives:
A. Mean
B. Mode
C. Median
D. None of these
Q. 194 Which of the following diagrams is appropriate to represent the various heads in total cost?
A. Bar graph
B. Pie chart
C. Multiple line chart
D. Scatter plot
Q. 195 For any two events A and B:
A. P(A-B) = P(A) – P(B)
B. P(A-B) = P(A) – P(A∩B)
C. P(A-B) = P(B) – P(A∩B)
D. P(B-A) = P(B) + P(A∩B)
Q. 196 The probability of getting at least one 6 from 3 throws of a perfect die is:
A. 5/6
B. (5/6)^3
C. 1 – (1/6)^3
D. 1 – (5/6)^3
Q. 197 If P(A) = 2/3, P(B) = 1/4, P(A∩B) = 1/12, then P(B/A) = __________:
A. 1/8
B. 7/8
C. 8/7
D. None of these
Q. 198 In Binomial distribution, if variance = mean^2 then n & p are:
A. 1, 1/2
B. 1, 1
C. 2, 1/2
D. 3, 1/2
Q. 199 In ________ distribution, mean = variance:
A. Binomial
B. Poisson
C. Normal
D. None of these
Q. 200 If X ~ N (50, 16) then which of the following is not possible:
A. P (X > 60) = 0.30
B. P (X < 50) = 0.50
C. P (X < 60) = 0.40
D. P (X > 50) = 0.50
| Answer Sheet | ||||||||||
| Question | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 |
| Answer | B | D | D | C | D | A | C | C | A | A |
| Question | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 |
| Answer | B | B | C | B | D | A | B | B | C | D |
| Question | 21 | 22 | 23 | 24 | 25 | 26 | 27 | 28 | 29 | 30 |
| Answer | D | A | D | B | B | D | A | B | D | B |
| Question | 31 | 32 | 33 | 34 | 35 | 36 | 37 | 38 | 39 | 40 |
| Answer | D | A | A | C | B | A | A | B | B | A |
| Question | 41 | 42 | 43 | 44 | 45 | 46 | 47 | 48 | 49 | 50 |
| Answer | C | A | D | B | A | B | A | B | C | B |
| Question | 51 | 52 | 53 | 54 | 55 | 56 | 57 | 58 | 59 | 60 |
| Answer | C | A | A | A | A | A | B | D | C | D |
| Question | 61 | 62 | 63 | 64 | 65 | 66 | 67 | 68 | 69 | 70 |
| Answer | C | B | B | D | C | A | D | A | B | A |
| Question | 71 | 72 | 73 | 74 | 75 | 76 | 77 | 78 | 79 | 80 |
| Answer | C | C | D | B | B | A | B | C | A | D |
| Question | 81 | 82 | 83 | 84 | 85 | 86 | 87 | 88 | 89 | 90 |
| Answer | A | A | B | A | A | D | D | A | D | A |
| Question | 91 | 92 | 93 | 94 | 95 | 96 | 97 | 98 | 99 | 100 |
| Answer | D | A | C | B | B | B | B | A | B | D |
| Question | 101 | 102 | 103 | 104 | 105 | 106 | 107 | 108 | 109 | 110 |
| Answer | B | C | C | C | D | A | B | D | A | C |
| Question | 111 | 112 | 113 | 114 | 115 | 116 | 117 | 118 | 119 | 120 |
| Answer | B | D | B | B | D | B | A | A | D | D |
| Question | 121 | 122 | 123 | 124 | 125 | 126 | 127 | 128 | 129 | 130 |
| Answer | B | A | A | D | C | C | C | A | D | D |
| Question | 131 | 132 | 133 | 134 | 135 | 136 | 137 | 138 | 139 | 140 |
| Answer | A | A | B | C | A | D | C | C | D | A |
| Question | 141 | 142 | 143 | 144 | 145 | 146 | 147 | 148 | 149 | 150 |
| Answer | A | A | C | A | B | C | D | A | A | A |
| Question | 151 | 152 | 153 | 154 | 155 | 156 | 157 | 158 | 159 | 160 |
| Answer | C | C | A | B | C | D | A | B | D | C |
| Question | 161 | 162 | 163 | 164 | 165 | 166 | 167 | 168 | 169 | 170 |
| Answer | D | B | A | C | B | C | A | A | A | C |
| Question | 171 | 172 | 173 | 174 | 175 | 176 | 177 | 178 | 179 | 180 |
| Answer | B | B | B | B | B | A | C | C | A | A |
| Question | 181 | 182 | 183 | 184 | 185 | 186 | 187 | 188 | 189 | 190 |
| Answer | D | A | A | B | D | B | A | D | B | D |
| Question | 191 | 192 | 193 | 194 | 195 | 196 | 197 | 198 | 199 | 200 |
| Answer | D | A | C | B | B | D | A | A | B | C |
