| Post Name | Accounts Officer (NCA- Ezhava/ Thiyya/ Billava) - Kerala Co operative Milk Marketing Federation Limited |
|---|---|
| Question Paper Code | 030/2022/OL |
| Category Code | 040/2020 |
| Date of Test | 9 June 2022 |
| Exam Type | Online Examination |
| Total Questions | 100 |
1
The prime goal of any company is to maximize the market value of equity shares of the company because (a) It serves as an index of performance of a company (b) It takes into account present and prospective future earnings (c) It ignores the risk factor as well as timing of returns Which among the following are the correct reasons?
Answer
B. Only (a) and (b) are correct
2
Tax shield is viewed as a beneļ¬t that accrues to a company if
Answer
C. The company is able to show is taxable proļ¬t every year
3
Which of the following is not a demerit of pay back period?
Answer
C. It is biased against short term projects
4
I - There is conļ¬ict between the two methods of evaluation - NPV and IRR. II - The implicit assumption of NPV is that cash ļ¬ows from the project will be reinvested at the cost of capital. Evaluate the two statements and select the appropriate
Answer
A. II is the reason for I
5
The market value of a ļ¬rm and its capital structure are independent. This statement is true as per
Answer
C. MM approach
6
If New York Times Ltd has a gearing ratio of 30%. Its cost of equity is 20% and cost of debt is 10%. The company's weighted average cost of capital will be
Answer
A. 17%
7
What will be the cost of capital of a company, if it has 5000 equity shares of Rs. 10 each with a market value of Rs. 50 each and its after tax proļ¬t of the company is 10,00,000?
Answer
B. 40%
8
The situation where minimum level of earnings satisļ¬es all ļ¬nancial charges is referred to as
Answer
A. Financial breakeven
9
Zero or low tax paying dividend clientele prefer
Answer
C. High dividend
10
"Growth ļ¬rms" as per Walter's Model is a ļ¬rm having
Answer
C. š
ļæ½ > š
ļæ½
11
'Dividends are irrelevant to share holders wealth' Assumptions: I - Firm's value is determined solely by its investment II - Change in dividend aļ¬ects price of stock as it conveys future earnings
Answer
D. I and II are the correct assumptions
12
Designing a proper capital structure requires the following I Solvency II Proļ¬tability III Flexibility IV Transferability Which of these are correct?
Answer
C. I, II and III
13
The rate of discount at which NPV of a project becomes zero is also known as
Answer
B. Internal rate of return
14
Consider the following steps in the process of capital budgeting (1) Identiļ¬cation of investment proposal (2) Evaluation of various proposals (3) Selection and preparation of capital budgets (4) Fixing priorities (5) Implementation (6) Performance review Which sequence of these steps is correct?
Answer
C. 1, 4, 2, 3, 5, 6
15
Ke = DPS/MP Ć 100, is used for
Answer
D. Calculating cost of equity share capital
16
If the proļ¬t margin = 4.5% and total asset turnover is 1.8%, then the return on assets Dupont equation would be
Answer
C. 0.081
17
Statement I - Cash dividend becomes a liability of the corporation Statement II - This arises from the declaration date Choose the right one
Answer
A. Both the statements are true
18
Present value takes
Answer
B. Discounting rate
19
The dividend irrelevance theorem to share valuation was propounded by
Answer
C. Modigliani and Miller
20
The dividend growth model can be used to compute the cost of equity for a ļ¬rm in which of the following situations (1) Firms that have a 100% retention ratio (2) Firms that pay a constant dividend (3) Firms that pay an increasing dividend (4) Firms that pay a decreasing dividend Select the correct answers from the options given below
Answer
C. (2), (3) and (4) only
21
The objective of SEBI include (1) To regulate securities market (2) To protect interests of inventors (3) To promote individual businesses (4) To promote the development of the market
Answer
B. 1, 2 and 4
22
Which of the following is not a credit rating agency?
Answer
C. NIKKEI
23
What is SP-500?
Answer
C. A stock exchange index of USA
24
In India Merchant banking, along with management of public issues and loan syndication covers activities like (1) Project counselling (2) Portfolio management (3) Investment counselling (4) Mergers and amalgamation of the corporate ļ¬rms (5) Securities and exchange
Answer
C. 1, 2, 3, 4
25
The four categories of merchant bankers issued by SEBI: (1) First category (i) Who act as an advisor or consultant to an issue (2) Second category (ii) Those authorized to act as an underwriter, advisor (3) Third category (iii) Those authorized to act in the capacity of co-manager (4) Fourth category (iv) Who carry on any activity of issue management
Answer
B. 1-iv, 2-iii, 3-ii, 4-i
26
Which among the following is not a correct statement?
Answer
B. Hedge funds can be sold to public
27
Dividend income received from mutual in the hands of unit holders
Answer
B. Fully exempt
28
Which of the following is not a characteristics feature of Venture Capital ļ¬rms?
Answer
A. Funding just one or a small number of ļ¬rms
29
Given below are two statements: One is labelled as Assertion (A) and the other is labelled as Reason (R) Assertion (A): Firm opt for buying as asset if the equivalent annual cost of ownership and operation is less than the best lease rate it can get. Reason (R): Operating lease are attractive to equipment users if the lease payment is less than the user's equivalent annual cost of buying the equipment. In the light of above statements, choose the most appropriate answer from the options given below:
Answer
B. Both (A) and (B) are correct and (R) is not the correct explanation of (A)
30
The type of factoring in which the factor recovers the amount advanced from client in case of non-payment by customer?
Answer
C. Recourse factoring
31
Name the letter of credit in which an advance payment is made to exporter for purpose of procuring shipment material?
Answer
A. Red Clause LC
32
Which among the following is/are the qualitative credit control measures adopted by RBI? (i) Maximum limit of credit for speciļ¬c purpose (ii) Diļ¬erential rate on certain types of advancement (iii) Open market operations (iv) Margins
Answer
D. (i), (ii) and (iv)
33
Which among the following is/are true for Private placement? (i) Issued to a select group of persons not exceeding 49 (ii) Issued to existing share holders (iii) It is neither a rights nor a public issue (iv) It does not involve consideration
Answer
D. (i) and (iii)
34
Which of the following statements about the Securities and Exchange Board of India is correct?
Answer
A. One of the objectives of setting up SEBI was to protect the interests of investors
35
Which among the following is/are true about factoring? (i) The idea of providing factoring services in India was ļ¬rst thought by Tandon Committee (ii) The idea of providing factoring services in India was ļ¬rst thought by Vaghul Committee (iii) A type of debtor ļ¬nance in which a business sells its accounts receivable to a third party at a discount (iv) It is a credit facility provided by a bank in its ordinary course of business against security of receivables
Answer
C. (ii) and (iii) are correct
36
Match the following information about regulating agencies. 1. RBI - i. 2005 2. SEBI - ii. 1999 3. IRDA - iiii. 1934 4. PFRDA - iv. 1992
Answer
B. 1-iii, 2-iv, 3-ii, 4-i
37
Which of the following is/are true about wolves in stock market? i. Speculator who neither buy nor sell securities in the market, but still trade on them ii. Powerful investors/traders who use unethical means to make money from the share market iii. A stock market speculators who buys a holding in a stock in the expectation that in the very short-termit will rise in value iv. None of the above
Answer
A. ii is true
38
The process of holding the entire supply of a particular security with a view to dictating terms is called
Answer
A. Cornering
39
'Follow on Public Oļ¬er' is also known as
Answer
D. All of these
40
Which among the following is the meaning of circuit breaking?
Answer
A. Temporary halt of trade in stock exchanges whenever index moves upward or downward beyond the speciļ¬ed limits
41
Which among these, is not a beneļ¬t of ļ¬nancial accounting? i. Maintaining systematic records ii. Protecting and safeguarding business assets iii. Historical in nature iv. Facilitates rational decision making
Answer
C. iii
42
The supply of goods or services in exchange of money between two parties is known as
Answer
C. Business transactions
43
Which of the following is/are related with money measurement concept? i. Business is treated separate from its owners ii. Non-ļ¬nancial information is not recorded in the accounts iii. Contingent liability is shown in the balance sheet iv. Loss of material due to ļ¬re is Rs. 2000
Answer
C. ii and iv
44
The convention of Prudence when applied to the balance sheet results
Answer
D. Understatement of Assets
45
Which of the following is true about ļ¬nancial statements? (a) Financial statement gives a summary of accounts (b) Financial statements can be stated as recorded facts
Answer
C. Both (a) and (b)
46
The format of Balance sheet of a company given under
Answer
B. Schedule III Part I
47
X's capital on 1st January, 2021 is 45,000, interest on drawings is 5,000, interest on capital is 2,000, drawings are 14,000, proļ¬t for the year is 15,000. His capital as on 31.12.2002 is
Answer
B. 43,000
48
Adjusting entries
Answer
D. All of about statements are true regarding Adjusting entries
49
Which of the following entries records the utility bill incurred but not paid from the water company?
Answer
A. Debit utilities expense; Credit utilities payable
50
An item of revenue expenditure has been incorrectly treated as capital expenditure. What is the eļ¬ect of this error? Non-current Assets proļ¬t for the year
Answer
C. Overstated Overstated
51
As per Accounting Standard 6, under which circumstances the method of depreciation may be changed? I. When the adoption of new method is required by statute II. When the change will help to show a higher amount of depreciation each year III. When it is required for compliance with an accounting standard IV. When it is considered that the change would result in a more appropriate presentation of ļ¬nancial statement
Answer
D. I, III and IV
52
Which type of inventory system is updated inventory system?
Answer
D. Perpetual inventory system
53
If actual bad debts are more than the provision for bad debts, then which of the following will increase?
Answer
B. Debit balance of Provision for Bad Debts account
54
Which of the following statements are true about Ratio Analysis? (a) Ratio analysis is useful in ļ¬nancial analysis (b) Ratio analysis is helpful in communication and coordination (c) Ratio analysis is not helpful in identifying weak spots of the business (d) Ratio analysis is helpful in ļ¬nancial planning and forecasting
Answer
A. a, b and d
55
Which of the following falls under proļ¬tability ratios? (a) General proļ¬tability ratios (b) Overall proļ¬tability ratios (c) Comprehensive proļ¬tability ratios
Answer
A. a and b
56
What will be the Gross Proļ¬t ratio if, total sales are Rs. 2,60,000 cost of net goods sold is Rs. 2,00,000 and sales return is Rs. 10,000?
Answer
D. 20%
57
If activity ratio of a ļ¬rm is 80% and capacity ratio is 120%, ļ¬nd out its eļ¬ciency ratio
Answer
D. 66.67%
58
In which of the following situations, the payback period method is advised for evaluation of investment opportunities? (a) Over leveraged business (b) Cash rich business (c) Uncertain market conditions (d) Stable market conditions Choose the most appropriate answer from the options given
Answer
B. a and c only
59
Determine Debtors turnover ratio if, closing debtors is Rs. 40,000, cash sales is 25% of credit sales and excess of closing debtors over opening debtors is Rs. 20,000.
Answer
A. 4 times
60
Match the following: List I List II P. Prepaid expenses - 1. Solvency ratio Q. Sales ratio - 2. Net proļ¬t margin X Investment ratio R. Return on investment - 3. Turnover ratio S. 100 minus proprietary - 4. Current asset ratio Select the correct answer from the options given below: P Q R S
Answer
B. 4 3 2 1
61
A society having jurisdiction over one revenue district is
Answer
C. Central society
62
Maximum divisible proļ¬t of a cooperative society is
Answer
D. 25%
63
As per cooperative law section 63 deal with
Answer
A. Director of cooperative audit
64
The ļ¬rst cooperative credit society act was passed in India
Answer
D. 1904
65
As per the Kerala Cooperative Societies act, the maximum number of members in primary society is
Answer
D. 15
66
A society get priority as per the section 35 in recovering any debt of outstanding demand owing to society is known as
Answer
A. First charge of society
67
A circle cooperative union is headed by
Answer
C. Assistant Registrar
68
_______ is special charge on movable property created in favour of State Cooperative Bank or district cooperative Bank under section 36A.
Answer
B. Gehan
69
A society can utilise ______ percent of net proļ¬t for charitable purpose
Answer
C. 7%
70
A society is classiļ¬ed as "D" if
Answer
C. The overdue exceed 40%
71
As per the section 70A cooperative arbitration court deal with
Answer
D. Non monetary dispute
72
The order, decisions of award referred in section 76 is called
Answer
A. Decree
73
________ is known as removal of duly elected member by register
Answer
B. Super session
74
The education fund of a cooperative society is maintained by
Answer
C. State Cooperative Union
75
Principal state partnership fund received from the state government is constituted and maintained by
Answer
C. Apex society
76
Day book of a society shall have _______ amount columns on both sides.
Answer
C. 2
77
Under the cooperative accounting system ļ¬xed assets are recorded as
Answer
D. Cost price
78
Net loss of a cooperative society shown in
Answer
A. Asset side of balance sheet
79
_________ type liability attracts the auditor for furnishing false and fraud statements.
Answer
D. Criminal liability
80
Kerala handicraft Apex cooperative society is known as
Answer
C. SURABHI
81
Short term economic forecasts are very useful for
Answer
A. Demand and sales forecasting
82
______ is a creative and innovative method of generating idea and forecast
Answer
C. Brainstorming
83
_______ is a basic technological innovation that establishes a new function and usage.
Answer
D. Radical innovation
84
A long term policy and planning of a corporation is the responsibility of
Answer
B. Board of directors
85
As per the company act 2013 schedule 7 the amount CSR can spend 1. Eradicating extreme hunger and poverty 2. Promotion of education 3. Ensuring environmental sustainability 4. Social business project
Answer
D. All are correct
86
A transparent administration of a corporation is known as
Answer
C. Corporate governance
87
In leasing, lessee acquires the right to use the asset for a short period is known as
Answer
A. Operating lease
88
________ are the individual who invest equity capital in startup of venture.
Answer
A. Angel investors
89
Which of the following not a qualitative method of credit control of RBI?
Answer
C. Credit rationing
90
_______ is a speculators who apply for IPO of securities with the sole aim of selling the allotted share at premium.
Answer
D. Stag
91
NSDL promoted by
Answer
C. IDBI UTI NSE
92
The trademark act passed in the year
Answer
B. 1999
93
_______ is the measure of a ļ¬rm's ability to sell its product or services for more than the cost of incurred to produce it.
Answer
D. Value
94
______ is the coordination of material, information and fund from the initial raw material supplier to the ultimate customer.
Answer
B. Supply chain
95
Which of the following certiļ¬cation awarded for quality assurance and management?
Answer
C. ISO 9000
96
The process of combining various diļ¬erent business unit as its ļ¬nancial statement to its parent company
Answer
A. Consolidation
97
Kyoto protocol related with
Answer
B. Environment
98
The new securities are purchased and sell before the oļ¬cial trading time is known as
Answer
D. Grey market
99
As per the BCG Matrix CASH COW denotes
Answer
C. High market share in slow growing market
100
Which is the ļ¬rst company set up social audit committee in India?
Answer
A. Tata Steel
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