| Post Name | Accountant/Junior Accountant/Accounts Clerk etc |
|---|---|
| Question Paper Code | 041/2026 |
| Category Code | 363/2025, 364/2025, 422/2025, 751/2025, 752/2025 |
| Date of Test | 25 April 2026 |
| Medium of Question | ENGLISH |
| Exam Type | OMR Examination |
| Total Questions | 100 |
1
The following facts are related to treatment of Normal Loss, Abnormal Loss and
Abnormal gain in Process Accounts. Which among the following statements are complete
and correct in respect of recognizing and recording normal Loss. Abnormal Loss and
Abnormal Gain in Process Accounts?
Functional/Utility Accounting
Concept
I Accounting concept that helps to perform accounting from the A Dual Aspect
point of view of business not that of owner
II Indefinite Life of Business Entity B Accounting
Period
III Accrued expenses or revenue C Business Entity
IV Accounting Equation D Going Concern
Answer
A. I – C, II – D, III – B and IV – A
2
The following statements are related to provisions in partnership Act and Companies Act
as to formation and functioning of Partnership Business. Which of the following are
incorrect in respect of partnership business?
I. Rule 10 of companies (incorporation) Rules 2014 specifies that maximum number
of persons that can be admitted to partnership as member is limited to 50.
II. Minor can be admitted to partnership, but loss of minor to be borne by other major
partners in Profit Sharing Ratio.
III. Section 4 of Indian partnership Act 1932 insist upon sharing of losses.
IV. A formal or written agreement is needed to create a partnership.
Answer
B. Only III & IV
3
On admission of new partner, after revaluation of assets and liabilities, the balance in
Profit or Loss in the Revaluation Account (Profit & loss adjustment account) is
transferred to capital account of partners. Which among the following describe best the
accounting treatment as to transfer of balance in Revaluation Account?
Answer
C. Capital Accounts of Old Partners in Old Profit-Sharing Ratio
4
From the following information books of Accounts of XYZ Bros, calculate gross profit to
be trasnferred to profit and loss account?
Stock (1.1.2024) Rs. 1,00,000
Net sales Rs. 4,70,000
Purchases Rs. 2,70,000
Returns Outwards Rs. 10,000
Returns Inwards Rs. 15,000
Trade Expenses Rs. 5,000
Free samples (goods) Rs. 2,000
Stock (31.12.2024) Rs. 1,20,000
Answer
A. Gross Profit Rs. 2,32,000
5
Which of the following fact(s) are correct and complete in respect of accounting treatment
on goods sent on sale or return basis in preparation of financial statements of a sole
trader?
I. If the customers approve goods sent on sale or return basis before date of
preparation of financial statements, No accounting treatment is required in the
case as it becomes sale.
II. If the customers didn’t approve goods sent on sale or return basis before date of
preparation of financial statements, cancel the effect of entry passed on sending
goods on credit to customers i.e.. cost price of goods sent should be deducted from
debtors and sales.
III. Cost of price goods should be added along with closing stock shown on asset side of
the balance sheet.
Answer
Question Cancelled
6
The following statements are related to preparation of cost sheet. You are required to
identify the correct statement (s) on attributes or preparation of cost sheet.
Set Part A
I Account sales is a statement sent by consignor to consignee specifying
expenses incurred, commission charged etc.
II Account sales is the basis o which consignor closes his entries in the books
regarding consignment for the year
III Del credere Commission is paid for making advance payments on
consignments by consignee
IV Generally, Del credere Commission is calculated on Credit sales.
Answer
Question Cancelled
7
X, Y and Z are partners in a business, sharing profits and losses in the ratio of 2:2:1.
Mr. Z retires by selling his share to the business for a sum of Rs. 600 which is paid by
X and Y, Rs. 480 and 120 respectively. Find out new Profit-sharing ratio of X and Y.
Answer
C. 14:11
8
You are given with facts related to Maximum Possible Loss method of distribution of
cash during the dissolution of partnership. Which of the following is
Answer
D. IV Only
9
While preparing financial statements of Joint stock companies, it shall disclose notes to
accounts. Out of the following combination of classification of Assets or Liabilities, which
one combination include an item being not part of Note to Accounts of financial
statements of joint stock company?
Classification of assets/liabilities as notes to accounts
Answer
C. Capital Reserves – Long Term Borrowings – Tangible Assets – Other
Non-Current assets
10
You are required to calculate the cost price of unsold stock in the consignment accounts.
Goods consigned 100 Units
Answer
B. Rs. 650
11
X Ltd. has issued 10,000 irredeemable debentures of Rs.100 each carrying an interest
rate of 14%, at a discount of 5%. The cost of issue is 2%, and the applicable tax rate is
50%. What is the cost of’ debt before tax?
Answer
A. 15.05%
12
XY Ltd. has issued 20,000 fully paid equity shares with a face value of Rs. 100 each. The
current market price of each share is Rs. 160, and the company has declared a dividend
of Rs. 8 per share. What is the cost of equity capital?
Answer
D. 5%
13
ABC Company reports sales of Rs. 25,00,000, with variable costs of Rs. 15,00,000 and
fixed costs of Rs. 5,00,000. The company also has debt amounting to Rs. 12,50,000,
carrying an interest rate of 8%. What is the value of the combined leverage?
Answer
B. 2.5
14
A Ltd. earns Rs. 10 per share. The company has a capitalization rate of 20% and earns a
return on investment of 25%. Using Walter’s Model, calculate the price per share.
Answer
A. Rs. 62.50
15
Which of the following is not an assumption underlying the Modigliani-Miller (MM)
capital structure theory?
Answer
D. Capital markets are imperfect
16
Determine the Economic Order Quantity (EOQ) using the following data:
• Annual consumption of raw materials : 10,000 kg
• Cost of placing one order : Rs. 25
• Cost per kg of raw material : Rs. 2
• Storage cost: 4% of the average inventory value
Answer
C. 2,500 kg
17
Which inventory management technique categorizes items based on their annual
consumption value?
Answer
C. ABC analysis
18
Which of the following is considered a dividend irrelevance theory?
Answer
C. M.M. Hypothesis
19
In the Miller-Orr Model of cash management :
Answer
A. The lower limit, upper limit and return point of cash balances are established
20
Financial leverage refers to :
Answer
B. Use of debt to finance the firm’s capital structure
21
Which of the following best describes the main purpose of cost accounting?
Answer
D. To ascertain the cost of production and assist in cost control
22
From the following, identify the one that is not a method of pricing material issues.
Answer
A. EOQ
23
Match the following wage systems with their features :
Wage systems Features
(i) Time Rate System
Answer
A. Bonus increases as time saved
increases
(ii) Piece Rate System
24
Consider the following statements regarding overhead absorption and choose the correct
statement.
Answer
B. Over-absorption of overheads occurs when actual overheads are less than
absorbed overheads.
25
From the following statements, identify the correct statement/s about Marginal Costing :
I. Fixed costs are treated as product costs.
II. Total cost is considered for decision making.
III. Contribution is considered for decision making.
Answer
C. Only III
26
A company has a fixed cost of Rs. 1,00,000, variable cost per unit Rs. 20 and selling price
per unit Rs. 40. What is the breakeven point in units?
Answer
D. 5,000
27
Which of the following are causes of material usage variance?
(i) Poor quality of materials
(ii) Inefficient use of materials
(iii) Incorrect standard set
(iv) Delayed payment to suppliers
Answer
A. Only (i), (ii) and (iii)
28
Which of the following is not true as regards a Bin Card?
Answer
C. Prepared by the Cost Accounting Department
29
Consider the following statements :
(i) Normal loss is debited to the costing profit and loss account.
(ii) Idle time is always controllable
(iii) Fixed costs remain unchanged in total within the relevant range
(iv) Marginal cost includes both variable and fixed costs
Which of the statement/s are correct?
Answer
B. Only (iii)
30
You are given the following data :
Sales Rs. 1,00,000
P/V Ratio 25%
Fixed Expenses Rs. 15,000
How much will be the profit?
Answer
C. Rs. 10,000
31
In which style of leadership, the leaders does not believe in the use of power unless it is
absolutely essential?
Answer
C. Laissez faire style
32
A company is in need of a detailed plan for its new project ‘construction of a shopping
Mall’ what type of plan is it?
Answer
B. programme
33
The type of organizational structure which promotes flexibility and initiative:
Answer
A. Divisional structure
34
The test which is conducted to measure existing skills of an individual:
Answer
D. Trade test
35
One among the following is not a feature of directing :
Answer
B. It is a one time activity
36
The need for coordination arises due to :
Answer
A. Division of work
37
An example of non verbal communication :
Answer
B. Facial expression
38
The classical school of management thought emphasises :
Answer
D. Scientific analysis of work
39
According to Herzberg, which of the following is a hygiene factor?
Answer
C. Working conditions
40
Which among the following best describes the essence of management?
Answer
C. Achieving coordination among resources
41
The percentage change in the quantity demanded of tea to the percentage change in the
price of coffee is termed as :
Answer
C. Cross elasticity of demand
42
The demand for Giffen goods will increase with :
Answer
B. Increase in price
43
Short-run production function is explained by:
Answer
D. Law of variable proportion
44
The term ‘Isoquant’ in production theory refers to :
Answer
D. A curve which represents the different combinations of inputs producing a
particular quantity of output
45
The Cobb-Douglas production function is Y = AKˣL¹⁻ˣ. What do L and K represent?
Answer
C. Labour and capital
46
If demand increases without any corresponding increase in supply, then:
Answer
A. There will be increase in equilibrium price
47
Variables that change after real output changes are called :
Answer
B. Lagging indicators
48
Which of the following policies might a government implement to counteract a recession?
Answer
B. Decrease taxes
49
Returns to scale refers to the relationship between:
Answer
B. The scale of input usage and the resulting level of output
50
‘Monetary Policy’ is :
Answer
B. The central bank’s actions to control the money supply and interest rates
51
‘A company can sue and be sued’ means :
Answer
D. A Company has separate legal entity
52
Who is the primary monitoring authority of Companies Act in India?
Answer
B. Ministry of Corporate Affairs
53
Which of the following is not a feature of One Person Company
Answer
A. The owner’s liability is unlimited
54
DIN in Company Law stands for :
Answer
D. Director Identification Number
55
In a general meeting of ABC Ltd, a matter has to be passed by special resolution. Out of
50 members present, 10 hesitate to vote, 10 vote against resolution and 30 in favour of
the resolution. As the Chairman of the meeting what you to do?
Answer
A. Can pass the special resolution
56
Which of the following statements relating to the disclosure of the financial statements
of listed Companies is correct?
Answer
D. Financial statements must be filed with the Registrar of Companies and
made available on the company’s website.
57
Which of the following statements are correct in case of winding up of Company by
National Company Law Tribunal?
(i) Company became insolvent and not able to pay off its debts.
(ii) The company has acted against the interests of sovereignty and integrity of India.
(iii) An application has been made by the ROC or any other person authorised by the
central government by a notification under the 2013 Act.
(iv) The affairs of the company have been conducted in a fraudulent manner.
Answer
B. (ii),(iii) & (iv)
58
How many Board of Directors meeting should be held in the year of incorporation, if the
Company is incorporated in the month of January?
Answer
Question Cancelled
59
According to the Companies Act, 2013, what is the minimum number of directors
required to form an Audit Committee in a listed company?
Answer
B. 3 Directors
60
Under Companies Act 2013, dormant Company means :
Answer
B. A company registered under the Act, for a future project and has no
significant accounting transaction.
61
Identify the major Function of Primary Market :
Answer
D. Helps the companies to raise capital
041/2026 13 A
62
Type of investors NOT permitted to invest in Indian Capital Market :
Answer
D. None of these
63
Which of the following is NOT a method of floatation of Capital?
Answer
C. Acquisition of shares of other companies
64
The regulatory authority while listing of Securities in Indian Stock Market :
Answer
B. SEBI
65
What is Price Band in book building process?
Answer
B. The price range within which investor can bid
66
Which of the following is NOT a function of the Stock Exchange?
Answer
Question Cancelled
67
Which of the following is NOT a Capital Market Instrument?
Answer
C. Repurchase Agreement
68
Which of the following statement rightly explain FPO?
Answer
D. A listed company issuing shares to the existing or new investors after IPO.
041/2026 14 A
69
Which of the following is NOT true in relation to IPO?
Answer
B. A Government company cannot go for IPO
70
Government securities are issued by :
Answer
Question Cancelled
71
Which of the following statements is/are correct Income Tax in India?
(i) The amount of income tax is calculated on total income.
(ii) The amount of income tax is calculated on gross total income
(iii) Income tax is progressive in nature
(iv) Income tax is regressive in nature
Answer
B. Only (i) & (iii)
72
Identify the previous year in the following case.
An assessee was appointed on 1st July 2024 as lecturer in a college on probation. He was
confirmed on 30th June 2025 :
Answer
C. The previous year shall be from 1st July 2024 to 31st March 2025
73
Which of the following income is/are assessed to tax in the same year in which the
income is earned?
(i) Income of a person leaving India
(ii) Transfer of property to avoid tax
(iii) Income from agriculture business
(iv) Income of a non- resident from shipping business
Answer
D. All except (iii) are correct
041/2026 15 A
74
Which of the following is/are basic conditions for an individual is said to be a resident in
any previous year?
(i) He has been in India in the previous year for a period of 60 days.
(ii) He has been in India in the previous year for a period of 90 days
(iii) He has been in India in the previous year for a period of 182 days or more
(iv) He has been in India for atleast 365 days during the four years preceding the
previous year and is in India for atleast 60 days during the previous year
Answer
A. Only (iii) & (iv)
75
Compute residential status in the following case.
Mr. Mohan. an Indian citizen, serving in a company in New York comes to India every
year for five months.
Answer
C. Non- resident
76
Which of the following income is/are totally exempted from computation of Income Tax?
(i) Share of income of a partner in the firm computed by dividing taxable profit of the
firm in the profit - sharing ratio
(ii) Any sum received by an individual as a member of – HUF out of the income of the
family.
(iii) Income received by a non - resident by way of royalty on lease of an aircraft.
(iv) Amount received under a life insurance policy which is issued on or before
31st March 2003
Answer
B. Only (i), (ii) & (iv)
77
Which of the following statements is/are correct to the computation of taxable
income under the salaries of an individual?
(i) Section 13 of the Income Tax Act 1961 specifies income which are taxable under
this head
(ii) Salary received by a partner from the partnership firm is chargeable under this
head
(iii) Dearness allowance and over time allowances are fully taxable under this head
(iv) Value of the residential accommodation provided at site shall not be
included in the salary income of the employee
Answer
C. Only (iii) & (iv)
78
What will be the annual value of house property in the following case?
Expected rent Rs. 90,000
House let out
Answer
B. Rs. 71,000
79
Which of the following statements is / are correct to the Goods and Services Tax?
(i) The Centre and the States simultaneously levying tax on a common base
(ii) Alcoholic liquor for human consumption is outside the realm of GST
(iii) GST came in to force on 1st July 2017
(iv) The exchange of currency from one form to another form is not considered as
service under GST system
Answer
D. Only (i), (ii) & (iii)
80
Match the following :
1. | CGST (i) | Collected by both Centre and State
2. | SGST (ii) | Collected by the State
3. | IGST (iii) | Intra-state transaction with in Union territory
4. | UTGST (iv) | Collected by the Centre
(v) | Inter-state transaction and imports
Answer
C. 1 -(iv), 2 — (Gi), 3—- (vy), 4- (i)
81
Which are the elements of consumer’s black box for response to marketing stimuli are
concerned?
(i) Buyer’s characteristics influence.
(ii) Buyer’s decision-making process.
(iii) Buyer’s environmental influence.
(iv) None of the above
Answer
B. (i) & (ii) only
82
Integrating ethnic themes and cross-cultural perspectives within a brand’s main stream
marketing, appealing to consumer similarities across sub cultural segments rather than
differences is known as :
(i) Brand Positioning
(ii) Total Market strategy
(iii) Target marketing.
(iv) Market segmentation
Answer
A. (ii) only
83
Which of the following statement is/are correct for Complex buying behaviour?
(i) Consumer buying behaviour in situations characterised by high consumer
involvement in a purchase and significant perceived differences among brands.
(ii) Consumer buying behaviour in situations characterised by high consumer
involvement but few perceived differences among brands.
(iii) Consumer buying behaviour in situations characterised by low consumer
involvement but few significant perceived brand differences.
(iv) Consumer buying behaviour in situations characterised by low consumer
involvement but no perceived brand differences.
Answer
B. (i) only
84
The stage of consumer buying decision making process in which consumer takes further
action after purchase, based on their satisfaction or dissatisfaction is known as :
(i) Alternative Evaluation
(ii) Information search.
(iii) Post Purchase behaviour.
(iv) Purchase decision.
Answer
B. (iii) only
85
Among the following what are the Key aspects of Product of Positioning?
(i) Differentiation
(ii) Target Audience
(iii) Value proposition
(iv) Consistent Messaging.
Answer
D. all the above
041/2026 18 A
86
Forming segments of consumers who have similar needs and buying behaviours even
though they are located in different countries.
(i) Demographic segmentation.
(ii) Behavioural segmentation.
(iii) Psychographic segmentation.
(iv) Cross market segmentation.
Answer
B. (iv) only
87
A consumer product that the consumer in the process of selecting and purchasing
usually compares on such attributes as suitability, quality, price and style is known as:
(i) Convenience Product
(ii) Shopping Products
(iii) Speciality Products
(iv) Unsought Product
Answer
C. (ii) only
88
Which of the following statements is/are correct for Product portfolio?
(i) Group of Products that are closely related and sold to the same customer
group.
(ii) The set of all Product lines and items that a particular seller offers for sale.
(iii) The total count of individual items within those product lines.
(iv) All of the above.
Answer
B. (ii) only
89
A review of the sales, cost and profit projections for a new product to find out
whether these factors satisfy the company’s objectives is known as :
(i) Concept Testing.
(ii) Marketing Strategy development.
(iii) Business analysis.
(iv) Idea screening.
Answer
C. (iii) only
90
A temporary period of unusually high sales driven by consumer enthusiasm and
immediate product or brand popularity is known as :
(i) Fashion
(ii) Fad
(iii) Style
(iv) Growth
Answer
A. (ii) only
91
Which of the following statements are correct about internal check?
(i) It is a form of division of labour among employees of the firm.
(ii) Ensuring that the accounting system produces reliable information is one of its
objectives.
(iii) It is a critical appraisal of how to function various operations of an organisation.
(iv) It should adhere the idea of giving each employee a fair amount of work so that
they can act independently.
Answer
B. (i), (ii) and (iv)
92
Which of the following statements is/are not correct about internal audit?
(i) It is carried out continuously by the paid employees of an organisation.
(ii) It is an analysis of daily transactions in which one person’s work is evaluated
independently by another.
(iii) One of its objects is to improve the performance of the organisation.
(iv) It covers the verification of accounting matters only.
Answer
D. Only (ii) and (iv)
93
Which of the following statements are true about audit programme?
(i) It outlines the procedure that must be followed for the verification of each item in
the financial statements.
(ii) It acts as a manual for arranging and distributing the work and checking against
the possibility of omissions.
(iii) It outlines the approximate amount of time needed to finish each audit task.
(iv) It helps the auditor to know about the status of work done by his/her assistants.
Answer
D. All the statements
041/2026 20 A
94
Which of the following statements are true regarding audit control?
(i) It makes the final review easier prior to the signing of the audit report.
(ii) It is carried out to ensure that the audit plan is followed throughout the actual
audit.
(iii) It simplifies the allocation of audit work among varied audit clerks with varied
grades.
(iv) It aims to update the audit programme based on fresh insights provided by audit
assistants.
Answer
D. Only (ii) and (iii)
95
Which among the following statements are correct regarding audit note book?
(i) It is a written record of the queries asked and answers provided.
(ii) The Chief auditor is incharge of maintaining audit note book.
(iii) It records the mistakes and errors found in the books of accounts maintained by
the client.
(iv) It displays the dates of commencement and completion of the audit.
Answer
C. (i), (iii) and (iv)
96
Which among the following statements are correct regarding vouching?
(i) It refers to the comparison of entries in the books of accounts with supporting
documentation.
(ii) It is the process that allows transactions to be verified for accuracy and
authenticity.
(iii) It indicates the inspection of documentary evidences by an auditor to substantiate
a transaction.
(iv) It helps to ensure that no entries have been omitted in the books of accounts.
Answer
A. All the statements
97
Which among the following statements is/are wrong regarding the objects of internal
check?
(i) To quickly identify a mistake or fraud.
(ii) To avoid misappropriation of goods or cash.
(iii) To help in finalising audit report without much delay.
(iv) To exercise moral pressure over the staff members.
Answer
C. Only (iii)
98
Which among the following statements is/are wrong?
(i) While an audit encompasses not only an assessment of a company’s financial
statements but also an enquiry into other pertinent issued related to the purpose
for which it is conducted, an investigation merely entails a review of company’s
financial statements.
(ii) An investigation last for several years, but an audit is related to six months or a
year.
(iii) In case of joint stock companies, audit is mandatory as per law while investigation
is not a statutory obligation.
Answer
A. (i)
99
Which among the following statements is/are true regarding the purpose/s served by
audit working papers?
(i) To help the auditor in identifying the operational weaknesses of the internal check
system.
(ii) To assist the auditor in forming an opinion regarding the audit clerks efficiency.
(iii) Audit clerks receive training on how to summarise their own work through the
preparation of audit working papers
(iv) Audit working papers serve as a guide to the auditor for audits of the same client
in the subsequent years.
Answer
D. All the statements
100
Which among the following is the most appropriate word to denote the practice of not
entering cash received immediately in the cash book and entering it only when a similar
amount is received from another debtor?
Answer
B. Teeming and Lading
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