| Post Name | Assistant/Cashier-cum-Accountant |
|---|---|
| Question Paper Code | 114/2025 |
| Category Code | 432/2024, 597/2024 |
| Date of Test | 13 September 2025 |
| Medium of Question | ENGLISH |
| Exam Type | OMR Examination |
| Total Questions | 100 |
1
Statement: “Insolvency of a partner requires revaluation of partnership assets and liabilities.” Assumptions: 1. Insolvency affects the financial position of a partnership firm. 2. The insolvent partner’s capital account will always have a credit balance. Which of these assumptions are implicit in the statement?
Answer
A. Only assumption 1 is implicit
2
The insolvent partner’s capital account will always have a credit balance. Which of these assumptions are implicit in the statement?
Answer
D. Neither 1 nor 2 is implicit
3
Entity Concept C. Only transactions measurable in money are recorded 4, Accrual Concept D. Revenue and expenses are recorded when they are incurred, not when cash is paid/received
Answer
C. 1-C, 2-B, 3-D, 4-A
4
Accrual Concept D. Revenue and expenses are recorded when they are incurred, not when cash is paid/received
Answer
A. 1-D, 2-B, 3-C, 4-A
5
In computerized accounting, the database where all accounting data is stored is called :
Answer
C. Data File
6
Which schedule of the Companies Act specifies the format for preparing company balance sheets?
Answer
B. Schedule III
7
Commission paid to consignee for sales above a certain price is called :
Answer
B. Overriding Commission
8
On dissolution, the loan from a partner is :
Answer
D. Paid after outsider’s liabilities
9
The accounting standard related to “Cash Flow Statements” is :
Answer
B. AS 3
10
The principle that revenue is recognized when it is earned, regardless of when cash is received, is called :
Answer
B. Revenue Recognition Principle
11
Consider the following statements about cost of equity capital : (i) Internal equity is raised through retained earnings. (ii) External equity refers to the issue of new shares. (iii) External equity is always cheaper than internal equity. Which of the above statements are correct?
Answer
A. Only (i) and (ii)
12
Consider the following statements regarding capital market conditions and capital structure : (i) Capital market conditions have little influence on the company’s financing decisions. (ii) In boom periods, companies may raise equity easily due to high share prices and lower flotation costs. (iii) During depression or uncertain periods, companies may prefer debt over equity. Which of the above statements are correct?
Answer
C. Only (ii) and (iii)
13
According to Gordon’s model, which of the following statements are true? (i) Dividend per share is expected to grow when earnings are retained. (ii) Retention ratio is variable and changes with growth. (iii) The value of the firm is affected by dividend policy when the internal rate of return differs from the cost of capital.
Answer
B. Only (i) and (iii)
14
Consider the following statements regarding Capital Asset Pricing Model
Answer
D. All (i), (ii) and (iii)
15
Consider the following statements : (i) Interest on debt is a tax-deductible expense, making debt financing more attractive under corporate taxation. (ii) Retained earnings and dividends are also tax-deductible like interest expenses. (iii) Leveraged firms can offer higher combined income to shareholders and debt holders compared to unleveraged firms, under the same operating income. Which of the above statements are correct?
Answer
B. Only (i) and (iii)
16
Consider the following statements regarding a share split : (i) In a share split, the face value of each share is reduced while the number of shares increases. (ii) A share split is undertaken to increase the market price of shares. (iii) A share split does not affect the total paid-up capital of a company. Which of the above statements are correct?
Answer
B. Only (i) and (iii)
17
Consider the following statements regarding working capital requirements : (i) In highly competitive markets, firms need to maintain higher working capital due to larger inventories and receivables. (ii) Prompt and adequate supply allows firms to maintain low inventory levels. (iii) If raw materials are available only seasonally, firms may need to carry large inventories year-round. Which of the above statements are correct?
Answer
D. All (i), (ii) and (iii)
18
Which of the following are valid methods of improving liquidity? (i) Increasing the stock turnover to release tied-up funds. (ii) Postponing capital expenditures that are not urgent. (iii) Maintaining a high inventory level to ensure smooth production.
Answer
A. Only (i) and (ii)
19
Consider the following statements about financial conditions and dividend policy : (i) Liquidity constraints have no effect on dividend decisions if profits are available. (ii) A company with high financial leverage prefers to retain more earnings. (iii) Bonus shares can be issued to psychologically satisfy shareholders without actual cash outflow. Which of the above statements are correct?
Answer
C. Only (ii) and (iii)
20
Consider the following statements about gross working capital and net working capital : (i) Gross working capital refers to the total investment in current assets. (ii) Net working capital is the difference between current assets and current liabilities. (iii) Net working capital always remains positive for all firms. Which of the above statements are correct?
Answer
A. Only (i) and (ii)
21
_____________ is a responsibility centre for which costs are ascertained and accumulated for the purpose of control.
Answer
A. Cost Centre
22
Consider the following statements on Overheads in Costing. Identify the statement that is wrong :
Answer
A. Overheads are basically classified into two - direct and indirect.
23
Calculate ‘Economic Order Quantity’ from the following :
Answer
B. 3000
24
Consider the following statements on Time Keeping and Time Booking. Identify the statement that is wrong :
Answer
D. Attendance register is a method of Time Keeping while Time Recording Clock is a method of Time Booking
25
Consider the following statements on ‘Supplementary Rate Method’ of treating under/over absorption of overheads. Identify the statement that is wrong :
Answer
B. It is used when the under/over absorption of overheads are due to abnormal reasons
26
Calculate ‘Profit/Volume Ratio’ from the following. Net Sales: 215000 (Year1) 245000 (Year2) : Total Cost: 180000 (Year1) 198000 (Year2)
Answer
C. 40%
27
Following statements are on ‘Standard Costing’. Identify the wrong statement :
Answer
D. Standard costing can be used only by a firm with historical cost data
28
Consider the following situations. Identify in which situation ‘Time Rate’ system of wage payment is not considered as best :
Answer
C. The job require skills that are repeatedly applied with the help of tools
29
Consider the following statements on Cost Control and Cost Reduction. Identify the wrong one :
Answer
D. Cost control is mainly applied on labour costs whereas cost reduction is applied mainly on material and overhead costs
30
Consider the following statements on ‘Marginal Costing’. Identify the statement that is wrong :
Answer
B. It is a method of costing like job costing or process costing.
31
Who introduced Differential Piece rate wage system?
Answer
A. Fredrick Winslow Taylor
32
A short-term plan at lower levels of management based on past performance of the organisation and is less uncertain :
Answer
D. Tactical plan
33
Which principle of management is concerned with “right place for everything and for every man”?
Answer
B. Order
34
What are the Big five personality traits as per five factor model theory?
Answer
C. Neuroticism, Extraversion, Openness, Agreeableness
35
Who is the developer of Total Quality Management?
Answer
B. W. Edward Deming
36
What is the Paternalistic leadership style?
Answer
C. Fatherly benevolence
37
Who is the father of administrative management theory?
Answer
A. Henry Fayol
38
_____________ is the combining of several activities from a vertical cross section of the organisation into one job to provide the worker with more autonomy and responsibility, represents an increase in job depth.
Answer
B. Job enrichment
39
The informal transmission of information, gossip or rumour from person to person is called as :
Answer
Question Cancelled
40
“The leader who holding positive expectations for followers and they believing that they can do their best, as a result they inspire, empower, stimulate followers to exceed their normal performance level”. Identify the above leadership style.
Answer
A. Transformational leader
41
Which of the following statements are FALSE 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) Derived demand means demand of inputs that arise from the demand of some final products or some related goods. (iii) From the consumers point of view, market demand means the aggregate of all individual demands.
Answer
D. None of the statements are false
42
Which of the following is FALSE with regard to the law of demand? (i) Demand for the prestige goods are a classical example for working of 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
A. Statement (i) alone is false
43
Find the TRUE 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
B. Statements (i) and (ii) alone are true
44
Which of the following statements are WRONG 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
B. Statement (ii) alone is wrong
45
Identify the CORRECT statements from the following : (i) Change in the demand due to change in factors such as income, population, taste and preference
Answer
C. Statement (iii) alone is correct
46
Identify the FALSE statements with regard to demand forecasting : (i) Demand estimation means finding future values of demand where as demand forecasting involves finding 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 empirical data analysis
Answer
C. Statements (i) and (iii) alone are false
47
Find out the TRUE 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 use of production function is that it helps to determine the minimum level of output by incurring high cost factor combination.
Answer
A. Statements (i) and (ii) alone are true
48
Find out the FALSE statement 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 different combination of labour and capital for a given amount of money.
Answer
B. Statement (ii) alone is false
49
Identify the TRUE statements with regard to the pricing policies : (i) Barometric Pricing involves price leadership where one firm fix the price and other firms 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
A. Statement (i) alone is true
50
Identify the WRONG statements from the following relating to Business Cycles: (i) The expansion phase of business cycle extends from trough to peak
Answer
C. Statement (iii) alone is wrong
51
The minimum number of members and directors of a public company :
Answer
B. 7 members and 3 directors
52
A person cannot be appointed as alternative director for :
Answer
D. Independent director
53
XYZ-Ltd is a listed company the total number of directors in the company is 12. Out of this 12 directors how much directors should be the independent directors :
Answer
D. Four
54
A meeting of the board may be called at shorter notice to transact urgent business subject to the condition that ____________, if any shall be present at the meeting.
Answer
A. At least one independent director
55
Audit committee may make omnibus approval for :
Answer
B. Related party transactions proposed to be entered into by the company
56
Where the winding up order has been made all the property and effects of the company shall be deemed to be in the custody of ___________ from the date of the order for the winding up of the company :
Answer
A. The Tribunal
57
State, which among the following grounds, is incorrect for removal of the provisional liquidator or company liquidator, as liquidator of the company :
Answer
D. Independent working having no conflict of interest
58
Every director shall at the first meeting of the Board in which he participate as a director disclose :
Answer
A. His concern or interest in any company
59
Which of the following statement is correct?
Answer
C. A public company may contribute any amount to any political party
60
In case of a company where minimum ___________ percent members (in number) are relatives of promoters or are related parties, they are not precluded from voting on a resolution for approving any related party transaction.
Answer
C. 90
61
How many companies are a part of Sensex?
Answer
B. 30
62
Which of the following Stock Exchanges has its index named as Sensex?
Answer
B. Bombay Stock Exchange
63
The term bulls and bears are associated with :
Answer
D. Speculators
64
___________ is a type of investment vehicle consisting of a portfolio of stocks, bonds or other securities.
Answer
B. Mutual funds
65
Which of the following is not a regulatory institution in Indian Financial System?
Answer
B. CIBIL
66
Which of the following is not an organized sector in India?
Answer
D. Chits and Money lenders
67
Which of the following is related with money market?
Answer
A. Treasury bills
68
Which of the following are called gilt edged securities?
Answer
C. Government Securities
69
A milling cutter may have surfaces made of:
Answer
C. Aluminium oxide
70
Normally, the milling machine table is made up of:
Answer
B. Steel
71
Which of the following statements is/are true? 1. The Income Tax Act, 1961, extends to the whole of India, including Jammu and Kashmir. 2. The Finance Act is passed every year to give effect to income tax provisions.
Answer
C. Both 1 and 2
72
Consider the following statements about ‘Gross Total Income’ (GTI) : 1. GTIis the sum of income under five heads before deductions 2. GTI includes income that is exempt under Section 10. Which of the statements is/are correct?
Answer
A. Only 1
73
Match the following Column A Column B 1. Section 80C A. Medical Insurance Premium 2. Section 80D B. Interest on Savings Account 3. Section 80TTA C. Life Insurance Premium 4. Section 80G D. Donations
Answer
B. 1-C, 2-A, 3-B, 4-D
74
Consider the following statements : 1. The income of a member of HUF from the family property is exempt. 2. Scholarship granted to meet education costs is exempt. 3. Commuted pension is always fully taxable. Which of the statements are correct?
Answer
A. 1 and 2 only
75
Section 10(10D) provides exemption for :
Answer
C. Maturity proceeds of life insurance policy
76
Mrs. A received Rs. 1,80,000 as HRA. Rent paid : Rs. 8,000/month. Basic salary : Rs. 25,000/month. She lives in Delhi. What is the exempt HRA?
Answer
D. Rs. 66,000
77
Which of the following statements are correct? 1. Income from house property is taxable only if there is rental income. 2. Self-occupied property has nil annual value. 3. Municipal taxes are deductible only if paid by the owner.
Answer
B. 2 and 8 only
78
Assertion (A) : Loss from speculative business can be set off against regular (non-speculative) business income. Reason (R) : All types of business incomes are taxed under the same head, so losses and gains can be adjusted freely.
Answer
D. is the correct explanation (B) Both (A) and (R) are true, but (R) is not the correct explanation (C) (A) is false, but (R) is true (D) Both (A) and (R) are false
79
The current (Year; 2025 Month; August) threshold limit for mandatory GST registration for service providers in the state of Kerala is Rs. ___________ lakh.
Answer
B. Rs. 20 lakh
80
What does GSTN stand for?
Answer
C. Goods and Services Tax Network
81
Meera selects a shop because she knows that it offers a wide selection or the latest models or good after sales service, then she is influence by :
Answer
D. Rational patronage motive
82
Toyota’s HyRider hybrid SUV has been on the market for several years. The vehicle’s benefits – such as fuel efficiency and eco-friendliness – are now widely known, and it has become a common choice among car buyers. Mr. Sharma, who had long resisted hybrid cars due to skepticism about new technology, finally decided to purchase the HyRider after seeing most of his friends and neighbours using it. Mr. Sharma’s adoption behaviour best represents which type of consumer?
Answer
B. Laggard
83
A company notices that sales of one of its long-standing products have been steadily falling despite multiple promotional efforts. Competitors have introduced newer technologies, and customers have shifted to alternative solutions. In response, the company decides to reduce its marketing spend, limit distribution to only the most profitable regions, and gradually phase out the product. Which of the following strategies is the company most likely using during the decline stage of the product life cycle?
Answer
C. Harvesting strategy
84
Hindustan Unilever Limited (HUL) offers a wide range of products under various categories. For example, it has multiple product lines such as personal care (e.g., Dove, Lifebuoy), home care (e.g., Surf Excel, Vim) and food and beverages (e.g., Bru, Knorr). Within the personal care line, HUL offers several brands and within the Dove brand, it offers shampoos, conditioners, body washes, soaps and lotions. Based on this information, which of the following statements best describes product mix characteristics of HUL?
Answer
C. The total number of products across all categories reflects the length of HUL’s product mix
85
A retail company uses customer data to personalize email offers based on past purchases, sends birthday discounts and provides customer service via chat support. These actions are most closely associated with which type of CRM strategy?
Answer
B. Operational CRM
86
A sales representative from a real estate company schedules a one-on-one meeting with a prospective buyer to explain features and close the deal. This is an example of :
Answer
B. Personal selling
87
A snack brand offers a “Buy 1 Get 1 Free” deal at supermarkets for a limited period to increase short-term sales. This is an example of :
Answer
D. Sales promotion
88
After a product recall, a car manufacturer holds a press conference and issues a public apology to maintain customer trust. This is an example of :
Answer
C. Public relations
89
A skincare company launches a television campaign showcasing the benefits of its new anti-aging cream. The ad reaches millions of viewers in a short time. What is the primary advantage of this form of advertising?
Answer
C. Wide audience reaches
90
A shampoo brand launches a large-scale advertising campaign on social media and TV to create strong customer demand, encouraging them to request the product in stores. This is an example of which strategy?
Answer
C. Pull strategy
91
Which of the following audit procedures is used to confirm the existence of assets?
Answer
C. Physical examination
92
___________ is a method of organising the accounting system of a business concern by which the duties of various clerks are arranged in such a way that the duty of one person is checked by another.
Answer
B. Internal check
93
Why it is important to maintain an audit notebook?
Answer
D. All of the above
94
What are audit files?
Answer
C. Documents that provide evidence of the audit work performed by the auditor
95
Which of the following statement is correct? (i) Audit planning is the specific guidelines and directions for efficient and effective completion of audit work on timely and daily basis so as to minimise audit risk. (ii) Audit planning helps in identifying potential problems.
Answer
A. Both (i) and (ii) are correct
96
An audit programme should be : (i) Rigid and never modified (ii) Prepared before the audit programme (iii) Prepared after the audit programme (iv) Flexible and modified as per requirements
Answer
B. Only (iv) is correct
97
Statement 1: The scope of valuation is wider than verification Statement 2: Valuation is done after vouching but before verification
Answer
Question Cancelled
98
The case law of Sockockinsky Vs. Bright Graham and Co. is related to :
Answer
C. Ownership of Audit working papers
99
Which of the following is not an objective of internal control?
Answer
D. Increasing profitability
100
While vouching cash purchase transaction, the auditor have to verify (i) Test the entries in the cash book with reference to cash memo (ii) See that amount after trade discount has been shown in the books (iii) See that the amount before trade discount is shown in the books (iv) Approval of purchase order, goods received note and invoice
Answer
C. (i), (ii) and (iv) are correct
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