| Post Name | Accounts Officer - Kerala Co operative Milk Marketing Federation Ltd |
|---|---|
| Question Paper Code | 039/2025/OL |
| Category Code | 518/2022 |
| Date of Test | 8 April 2025 |
| Exam Type | Online Examination |
| Total Questions | 100 |
1
In case of Dissolution of partnership ļ¬rm, which of the following is/are incorrect treatment in respect of adjustment in realisation account? Treatments in Final accounts i. Contra asset account are transferred to debit side of realisation account at Gross ļ¬gures ii. Goodwill account appearing in the books is not transferred to realisation account like other assets iii. While bank loan account is not transferred to Realisation account, bank overdraft account must be transferred to Realisation account iv. When some of the assets are taken over by creditors, no entry is to be passed for assets taken over by creditors, the actual amount paid to creditors after adjusting agreed value of assets to be debited to realisation account
Answer
B. ii and iii only
2
Which of the following best describe the adjustment of Proļ¬t or Loss on revaluation and assets and liabilities in case of retirement of partner?
Answer
A. III and IV only
3
You are given that P and Q are partners in a ļ¬rm sharing Proļ¬ts and Losses in the ratio of 3:2 Mr. C joins the ļ¬rm for 1/3rd share and has to pay Rs. 25,000 for goodwill but can pay nothing. A and B decided to share proļ¬ts and losses equally. If balance sheet shows Rs. 50,000 as goodwill, give journal entry for raising goodwill. Code Journal Entry I. Goodwill Account Dr. 1,25,000 To A capital account 75,000 To B capital account 50,000 II. Goodwill Account Dr. 25,000 To A capital account 15,000 To B capital account 10,000 III. Goodwill account Dr. 75,000 To A capital account 45,000 To B capital account 30,000 IV. Goodwill Account Dr. 25,000 To A capital account 12,500 To B capital account 12,500
Answer
B. Option II
4
The following facts are related to application of computers in accounting. Which of the following best describes characteristics the features of accounting softwares? I. Reach is a web based accounting software available free of cost in accounting community. II. Xero is a cloud based accounting software for small and medium enterprise in India. III. Marg is accounting software where all the business operations are bundled in single software and it ensures that the business owner is able to track every aspect of the business. IV. Proļ¬t books is an online accounting software developed for small enterprise which can be accessed anywhere being cloud based.
Answer
C. IV is only correct
5
Which of the following combination doesn't represent/part of items under RESERVES and SURPLUS in the ļ¬nal accounts of Companies?
Answer
A. Set II only
6
You are required to ļ¬nd out value of unsold stock from the following information On 01-01-2024, Doshi medicals sends 450 cases of medicine costing Rs. 850 per case Surya medicals on consignment basis. The following expenses were incurred (paid in cash) to Doshi Medicals : Packing expenses Rs. 10 per case, freight Rs. 800, forwarding agents expenses Rs. 700 (due) and Insurance premium Rs. 1,800 (paid by cheque). On 31.12.2024, accounts of Surya medicals shows 75 cases as unsold. Surya medicals paid the following expenses. Cartage Rs. 500, unloading Rs. 700 and Rs. 1,800 as Godown rent.
Answer
B. Rs. 65,250
7
The following statements are related to fund concept of accounting. Which of the following best describe(s) the characteristics of Fund Concept? I. The fund concept is a theoretical view that focuses on an impersonal fund rather than personality. II. The accounting equation that best describes fund concept is Assets = Restrictions on Assets. III. The fund concept explains the ļ¬nancial recording of an organisation in terms of Fund and Assets. IV. Fund concept is most useful for government and nonproļ¬t organisations.
Answer
C. III only
8
From the following information, ļ¬nd out the amount of Gross Proļ¬t for the year ending 31.12.2024 Give that Adjusted Purchases Rs. 8,60,000, Sales 9,40,000, Closing Stock Rs. 6,400, Freight and Cartage Rs. 5,000, Import Duty Rs. 2,500, Export Duty Rs. 1,200
Answer
D. Gross Proļ¬t Rs. 72,500
9
The table presents Indian Accounting Standards and description of Accounting Standard discussed under the code. You are required to match the Accounting Standard with its description as given in the table. Accounting Concepts Utility/Assumptions I. Ind AS 12 A. Earning per share II. Ind AS 23 B. Income Taxes III. Ind AS 33 C. Investment Property IV. Ind AS 40 D. Borrowing Cost
Answer
B. I-B, II-D, III-A, IV-C
10
The following facts are related to Accounting principle called Matching Principle. You are required to identify the correct combination of statements related to matching principle. I. Matching doesn't mean that expenses mus be identiļ¬able with revenues. Expenses charged to a period may or may not be related to the revenue recognised in that period. II. Matching Principle is basically an accrual concept as it disregards the timing and the amount of actual cash inļ¬ow or cash outļ¬ow and concentrates on the occurrence of revenue and expenses.
Answer
A. Both are correct
11
A company has a ļ¬nancial structure where equity constitutes 70% of its total capital (equity + debt). The cost of equity is 10%, the gross loan interest rate is 5% and the corporate tax rate is 30%. What is the company's Weighted Average Cost of Capital (WACC)?
Answer
D. 8.05%
12
What is the Economic Order Quantity (EOQ) based on the following information? ā¢ Annual consumption of materials : 10,000 kg ā¢ Order placing cost per order : Rs. 50 ā¢ Cost per kg of raw materials : Rs. 2 ā¢ Storage cost : 8% of the average inventory value.
Answer
C. 2500 kg
13
Which one of the following is correct about MM Hypothesis? i. Market value of equity shares of a ļ¬rm depends solely on its earning power and is not inļ¬uenced by the manner in which its earnings are split between dividends and retained earnings. ii. Market value of equity shares in aļ¬ected by dividend size. iii. Under MM hypothesis there is no meaningful distinction between dividend and share repurchases. They both are ways for a company to return cash to shareholders.
Answer
C. i and iii are correct
14
Which one of the following is a correct statement about Assumptions of Gordon's Model? i. Firm is an all equity ļ¬rm i.e. no debt. ii. IRR will remain constant, because change in IRR will change the growth rate and consequently the value will be aļ¬ected. Hence this assumption is necessary. iii. Ke will not remain constant.
Answer
A. Only i and ii are correct
15
Which of the following components are included in the calculation of the Weighted Average Cost of Capital (WACC)?
Answer
C. A combination of debt, equity and preferred stock
16
Which of the following capital budgeting methods considers the time value of money using discounted cash ļ¬ows?
Answer
C. Net Present Value (NPV)
17
Which of the following statements is correct with respect to Gordon's model?
Answer
A. When IRR is greater than cost of capital, the price per share increases and dividend pay-out decreases
18
Capital structure of a business ļ¬rm inļ¬uences the
Answer
C. Both Risk and Return
19
Optimum leverage is a function of which of the following factors?
Answer
B. Variable contribution margin
20
In which of the following techniques is depreciation considered as a cost?
Answer
A. Accounting Rate of Return
21
The costing technique of charging all variable manufacturing costs and ļ¬xed production overheads to a product/process and writing oļ¬ all administrative and marketing overheads against proļ¬ts in the year in which it arise is known as
Answer
B. Absorption Costing
22
Which of the following costing method is used by the ļ¬rms that provide service but do not produce tangible products?
Answer
C. Operating costing
23
Calculate 'Conversion Cost' from the following: Direct material Rs. 600, Direct labour Rs. 800, Direct expenses Rs. 400, Production Overheads Rs. 200
Answer
D. Rs. 1,400
24
Calculate Economic Order Quantity from the following. Consumption/Month : 4000 units, Purchase price/unit : Rs. 25, Carrying Cost/year : 12%, Per order cost : Rs. 180.
Answer
A. 2400 units
25
Following statements are on 'Purchase Requisition'. Identify the wrong statement.
Answer
C. It contains the details of quantity and price of the item to be purchased
26
Identify the bonus plan from the following features: i. It is a combination of time rate, piece rate and bonus plan. ii. Standard time is ļ¬xed for each work. iii. It guarantee the day wages to workers. iv. There are three rates of payments
Answer
B. Gantt Task and Bonus system
27
Which of the following overhead absorption system is based on actual ļ¬gures?
Answer
D. Actual Overhead rate
28
In marginal costing method, what is done with ļ¬xed costs?
Answer
A. It is treated as period cost and written oļ¬ from proļ¬t for that period
29
Consider the following statements on 'standards' used in Standard Costing. Identify the wrong one.
Answer
A. Normal standard is based on industry average
30
The following statements are on Break Even Analysis. Identify the wrong one.
Answer
B. In certain case, if we apply marginal costing, Break even point can become negative
31
__________ is based on the premise that when people interact in a free and uninhibited atmosphere, they will generate creative ideas.
Answer
C. Brainstorming
32
The systematic eļ¬ort to delegate to lowest levels of authority is
Answer
C. Decentralisation
33
What are the main factors that aļ¬ect leadership eļ¬ectiveness in case of Fiedler's contingency model?
Answer
A. Personality and situation
34
____________ is the systematic study of meaning.
Answer
C. Semantics
35
Which is the system where business results are compared against the results that were either budgeted or planned?
Answer
B. Management by exception
36
The leadership style that emphasises the importance of diversity, equity and inclusion in the work place is called
Answer
A. Inclusive leadership
37
The process for structuring and running organisations is called
Answer
C. Organisational design
38
Which theory of motivation proposes external control?
Answer
C. Theory X
39
Who was the founder of Neo classical theory?
Answer
C. Elton Mayo
40
Peter F Drucker developed the concept of
Answer
A. Management by objectives
41
Which of the following statements are TRUE with regard to the concept of Demand? i. Demand for a commodity arises when there is a desire for such commodity backed by willingness to pay for it and ability to pay for it. ii. Demand for inputs and factors of production on the part of producers are termed as Direct Demand. iii. From the consumers point of view, market demand means the aggregate of all individual demands.
Answer
B. Statement i and iii alone are true
42
Which of the following is FALSE with regard to the law of demand? i. Prestige goods are an exception to the law of demand. ii. Demand Curve is the graphical representation of demand schedule. iii. Law of diminishing marginal utility is a strong reason for the downward sloping nature of demand curve.
Answer
D. None of the statements are false
43
Find the WRONG statements from the following i. The concept of elasticity of demand was introduced by Alfred Marshal. ii. Perfectly inelastic demand means that the elasticity is equal to zero. iii. Relatively elastic demand refers to a situation where the elasticity is less than one.
Answer
A. Statement iii alone is wrong
44
Which of the following statements are CORRECT with regard to the elasticity of demand? i. Price elasticity of demand is calculated by dividing the proportionate change in the quantity demanded with the proportionate change in the price. ii. Negative Income Elasticity refers to a situation where the increase in income leads to a corresponding increase in the quantity demanded. iii. Advertisement elasticity of demand measures the degree of change in the quantity demanded for a given change in the advertisement cost.
Answer
C. Statement i and iii alone are correct
45
Identify the INCORRECT statement from the following i. Change in the demand due to change in factors such as income, population, taste and preference (other than price) is called Extension or contraction of demand. ii. Change in the demand due to a change in the price (other things remain constant) is called as shift in demand. iii. When the demand of commodity is related with the price of other commodity, it is called cross demand
Answer
A. Statement i and ii alone are incorrect
46
Identify the TRUE statements with regard to demand forecasting. i. Demand estimation means ļ¬nding future values of demand where as demand forecasting involves ļ¬nding the current demand. ii Consumer clinics method of demand forecasting involves giving some amount of money to selected group of consumers and observing their consumption behaviour. iii. Delphi method of demand forecasting involves extensive consumer survey and subsequent emipircal data analysis
Answer
B. Statement ii alone is true
47
Find out the WRONG statements from the following related to the production function. i. Production function indicates the functional relationship between input and output (maximum quantity of output that can be produced from minimum quantities of inputs). ii. Cobb-Douglas production function indicates the constant returns to scale but are called as log linear function. iii. One of the managerial of production function is that it helps to determine the minimum level of output by incurring high cost factor combination.
Answer
C. Statement iii alone is wrong
48
Find out the CORRECT statements from the following i. Law of Diminishing Returns analyse production in the short run and Law of Returns to Scale analyse production in the long run ii. Isoquants are upward rising curve from left to right iii. Iso-cost line indicates diļ¬erent combination of labour and capital for a given amount of money
Answer
B. Statements i and iii alone are correct
49
Identify the WRONG statements with regard to the pricing policies i. Barometric pricing involves price leadership where one ļ¬rm ļ¬x the price and other ļ¬rms simply follows it ii. Price Skimming in the case of a new product means charging a low price during its introduction and slowly increasing it in future iii. Penetration Pricing for a new product involves charging a higher price during its introduction and slowly reduce it in future
Answer
D. Statements ii and iii alone are wrong
50
Identify the TRUE statements form the following relating to Business Cycles i. The expansion phase of business cycle extends from trough to peak (depression to boom) while the contraction phase ranges from the peak to trough (boom to depression) ii. Full employment or Prosperity phase indicates the optimum level of economic activities iii. Recession means an upward movement of economic activities from the depression stage to the boom stage
Answer
A. Statements i and ii alone are true
51
Which of the following is NOT a situation in which a company may be wound up by the tribunal?
Answer
A. Company has not ļ¬led Income Tax return for the last three years
52
The minimum number of directors required in the Board of Directors of Public, Private and One person Company is
Answer
B. 3, 2, 1
53
Who has the power to call general meetings of the company for the purpose of obtaining the sanction of the company by ordinary or special resolution for voluntary winding up?
Answer
D. Liquidator
54
In the context of winding up of the company which of the following is the correct preferential payment order of the following four items
Answer
A. (a) all revenues, taxes, cesses and rates due from the company to the government (b) all wages or salary (c) all accrued holiday remuneration becoming payable to any employee (d) all sums due to any employee from the provident fund or any other fund for the welfare of the employees
55
Who appoint the oļ¬cial liquidator for the winding up of the company by the Tribunal?
Answer
C. Central Government
56
Companies Act 2013 is not applicable to
Answer
C. Insurance companies its provisions are inconsistent with provisions of IRDA Act 1999
57
The board of public company may call extraordinary general meeting on the requisition of __________ of the members having voting right and the quorum of the meeting will be _________.
Answer
D. Not less than 1/10th, Five members if the number of members is not more than one thousand
58
Maximum number of public companies in which a person can act as director at a time is
Answer
B. 10
59
Quorum for a meeting of the Board of Directors will be
Answer
D. 1/3rd of the total or 2 whichever is higher excluding directors by video conferencing or by other audio visual means
60
As per sec 177 of the companies act 2013 audit committee shall consist of
Answer
A. Directors only
61
Which of the following statements is/are correct to OTCEI market? i. It was setup in 1992 ii. Its promoters include UTI, ICICI, IDBI etc. iii. OTCEI provides screen-based trading system iv. OTCEI traded securities can be traded on other stock exchanges
Answer
C. Only i, ii and iii
62
Which of the following statements is/are correct to New issue market? i. Bought out deals is not a method of new issue of securities ii. Book building is a method for new issue of securities iii. Both new and existing companies can raise capital through new issue market iv. Bonus issue is one of the methods of fresh issue of shares through which companies raise capital
Answer
D. Only ii and iii
63
Which of the following statements is/are correct to Indian ļ¬nancial system? i. NBFCs are not part of the ļ¬nancial system ii. Derivative market is a segment in the money market iii. Financial services is one of the components of ļ¬nancial system iv. Primary market is not part of ļ¬nancial system
Answer
B. Only iii
64
Match the following : 1. Zero interest bond i. Issued when foreign company raise capital from Indian investors 2. IDR ii. Bonds sold at a discount from their maturity value 3. FCDs iii. Bonds sold at a large discounts to its nominal value iv. Debenture convertible into shares automatically and compulsorily
Answer
A. 1-ii, 2-i, 3-iv
65
STRIPS stands for
Answer
B. Separate Trading of Registered Interest and Principal of Securities
66
Which of the following is Not a marketable ļ¬nancial asset?
Answer
D. National savings certiļ¬cate
67
Which of the following statements is/are correct about the Indian ļ¬nancial system? i. Nationalisation of ļ¬nancial institutions increased the pace of development of ļ¬nancial system ii. Establishment of new ļ¬nancial institutions made no impact on the development of ļ¬nancial system iii. Establishment of development banks inļ¬uenced the development of ļ¬nancial system iv. Credit rating agencies contributed much to the development of ļ¬nancial system
Answer
D. All except ii
68
Which of the following statements is/are correct about stock exchanges in India? i. BSE functions as Association of Persons ii. NSE is a demutualised stock exchange iii. BSE is a company limited by guarantee iv. BSE is a demutualised stock exchange
Answer
B. Only i and ii
69
Which of the following statements is/are correct about listing of securities? i. Listed companies must notify the stock exchange the reissue of forfeited shares ii. Submission of particulars of forfeited shares to the stock exchange with the application for listing is not mandatory iii. Listed companies must notify the stock exchange any change in its capital structure iv. Listing agreement is not mandatory for getting listed in stock exchanges
Answer
C. Only i and iii
70
Match the following : 1. Account period settlement i. Trades during the day are settled on the net obligation for that day 2. Rolling settlement ii. Day when the broker makes payment to the stock exchange 3. Pay-in day iii. Trades during a period more than one day are settled on a net basis 4. Pay-out day (iv) Day when the stock exchange makes payment to the broker
Answer
A. 1-iii, 2-i, 3-ii, 4-iv
71
Income Tax is paid during the current ļ¬nancial year on the income of the previous ļ¬nancial year at the rates in force during the ______ year.
Answer
B. Current ļ¬nancial year
72
Rebate under section 87A is available only to a ________ assessee.
Answer
A. Resident Individual
73
Which of the following statement is/are correct regarding allocation of amount of income Tax? State government will not be given any share of income tax revenue from the following : i. Income tax amount recovered from companies. ii. Amount of Surcharge iii. Amount of Health and education cess iv. Tax amount collected from Capital Gain
Answer
B. Only i, ii and iii
74
When a person is responsible for doing any work under the Income Tax Act and he fails to do it, he is called
Answer
C. Assessee in Default
75
Which of the following is a fully Taxable Perquisite for all employees?
Answer
A. Rent free Accommodation
76
Which of the following statement is/are correct about Expected Rent where standard rent has not been ļ¬xed under the head Income from House Property? i. Municipal value or Fair rent whichever is higher ii. Municipal value or Fair rent whichever is lower iii. Municipal value of actual rent whichever is higher iv. Municipal value or actual rent whichever is lower
Answer
B. Only i
77
Long Term capital loss on the transfer of long-term capital assets can be set oļ¬ against the following
Answer
B. Long term capital gain
78
Tax cascading means
Answer
A. Tax on tax
79
Goods and Service Tax is a ______ tax
Answer
B. Value Added tax
80
Which of the following statement is/are correct about Input tax credit set oļ¬ under GST Act?
Answer
A. ITC of IGST against IGST, CGST, and SGST/UTGST in that order
81
______ may be deļ¬ned as one or more folders or other storage media, in physical or electronic from, containing records that comprise audit documentation for a speciļ¬c engagement.
Answer
A. Audit ļ¬le
82
Which of the following is not correct?
Answer
C. SA 505-Written Representation
83
Control risk is a function of the eļ¬ectiveness of the design, implementation and maintenance of ______ by management.
Answer
B. internal control
84
Audited ļ¬nancial statement are not a guarantee against probable wrong doings in ļ¬nancial matters of companies. What kind of assurance does audit of ļ¬nancial statement provide?
Answer
C. It provides reasonable assurance meaning a high level of assurance
85
SA 230 stands for
Answer
C. Audit documentation
86
Which of the following is not a part of Temporary Audit ļ¬le?
Answer
D. Legal and organization structure of the company
87
The object of investigation is
Answer
B. Special
88
The process of distribution of work among employees according to their ability is known as
Answer
C. Internal check
89
Audit procedures to obtain audit evidences include
Answer
C. Both of (1) and (2)
90
Which one of the following statements is correct?
Answer
A. Valuation is a part of veriļ¬cation
91
Which of the following pricing strategies is MOST eļ¬ective in markets with high competition, low diļ¬erentiation and price-sensitive customers?
Answer
C. Penetration Pricing
92
Which of the following best describes the diļ¬erence between Brand Equity and Brand value?
Answer
B. Brand equity refers to intangible beneļ¬ts like customer loyalty, whereas brand value is the ļ¬nancial worth of a brand
93
In the context of consumer learning, which of the following theory suggests that consumers develop attitudes and behaviours through observing others?
Answer
C. Social Learning Theory
94
In the context of promotion mix strategy, which of the following statements about Push and Pull Strategies is the MOST accurate?
Answer
C. Push Strategies rely on personal selling and trade promotions to encourage intermediaries to stock and sell products, while pull strategies create direct consumer demand through advertising and brand loyalty programs
95
A luxury watch brand wants to expand its market reach. It currently targets high-income business professionals but plans to launch a new collection for trendy young consumers who value fashion and social status. Which segmentation strategy combination is the MOST appropriate for this expansion?
Answer
D. Psychographic and Behavioural Segmentation
96
Statement : Target marketing allows companies to increase their competitive advantage. Reason : Companies that focus on speciļ¬c customer segments can tailor their oļ¬erings more eļ¬ectively Select the right option from the following:
Answer
A. Both the statement and reason are correct, and the reason explains the statement
97
Statement : Market segmentation helps businesses improve customer satisfaction. Reason : Segmenting a market allows companies to oļ¬er the same product to all consumers at the lowest cost. Select the right option from the following
Answer
C. The statement is correct, but the reason is incorrect
98
Match the marketing strategies with their descriptions : List 1 List 2 A. Market Penetration 1. Selling a new product in a new market B. Product Development 2. Increasing market share with existing products C. Market Development 3. Introducing a new product in an existing market D. Diversiļ¬cation 4. Entering new markets with new products Options :
Answer
A. A-2, B-3, C-1, D-4
99
Match the features of product mix with their explanations : List 1 List 2 A. Width 1. Varieties oļ¬ered for each product in the product line B. Length 2. Total number of product lines a Company carries C. Depth 3. Total number of items in product mix D. Consistency 4. Closeness exhibited by product lines Options :
Answer
B. A-2, B-3, C-1, D-4
100
Match the following promotional strategies with their primary purpose : List 1 List 2 A. Public Relation 1. Building long-term customer relationships B. Sales promotion 2. Personal and targeted marketing communication C. Direct marketing 3. Short-term incentives to boost sales D. Advertising 4. Mass communication to create brand awareness Options :
Answer
B. A-1, B-3, C-2, D-4
Discussion
Ask a doubt or share a tip.
No comments yet ā start the discussion.