| Post Name | ASSISTANT MANAGER (INTERNAL AUDIT) (KERALA STATE BACKWARD) |
|---|---|
| Question Paper Code | 167/2024 |
| Category Code | 243/2023 |
| Date of Test | 28 November 2024 |
| Medium of Question | ENGLISH |
| Exam Type | OMR Examination |
| Total Questions | 100 |
1
State the correct sequence of an accounting cycle:
Answer
B. Identifying, recording, classifying and summarising
2
The Accounting convention followed by accountants to play safe:
Answer
C. Both
3
Accounting systems are basically:
Answer
C. Both
4
The full form of AICPA:
Answer
D. American Institute of Certified Public Accountants
5
Revenue is recognised:
Answer
A. At the point of sale
6
Accounts which deal with persons and entities:
Answer
C. Personal Accounts
7
Prepaid Salary comes under:
Answer
B. Asset
8
Income received in Advance Account is
Answer
C. Personal Account
9
Statement showing arithmetic accuracy:
Answer
A. Trial Balance
10
How many categories are there in the modern approach of accounting?
Answer
C. Five
11
Latest technology which is ushering in a new era of transparency and security in
transactions:
Answer
C. Block chain
12
Gross profit in equation form is
Answer
C. Both (A) and (B)
13
Amount charged from a person to whom training is given by business:
Answer
B. Apprentice Premium
14
Claim against the company not acknowledged as debt:
Answer
D. Contingent Liability
15
Companies Act 2013 is an Amendment to the companies Act:
Answer
C. 1956
16
When a company invests in fixed assets and investments it results in :
Answer
C. Decreased Cash
17
Reconciliation between the opening balance and closing balance of shareholder’s equity:
Answer
C. Both
18
Spreading an intangible asset’s cost over that asset’s useful life :
Answer
B. Amortization
19
Expenses incidental to the creation and floatation of a company is :
Answer
D. Preliminary Expenses
20
Deferred Tax assets (net) come under the sub-heading of the Balance Sheet :
Answer
A. Non-current Assets
21
If inventory is Rs. 2,00,000; current assets is Rs. 20,00,000 and Current liabilities is
Rs. 10,00,000, the liquid ratio is :
Answer
C. 1.8 times
22
Which of these reason may indicate high current ratio, but not a satisfactory position?
(i) Slow moving goods
(ii) Poor Debt Collection
(iii) Idle cash on account of insufficient investment opportunities
(iv) Inability to pay off liabilities on account of insufficient funds
Answer
D. (i), (ii) and (iii) only
23
Du-Pont Control chart is ultimately based on two elements. Which are they?
Answer
C. Net profit and Capital Employed
24
Which of the following methods are the tools mainly employed in horizontal analysis?
(i) Common Size Statements
(ii) Comparative Statements
(iii) Financial Ratios
(iv) Trend Analysis
Answer
B. (ii) and (iv)
25
Which of the following transactions result(s) in flow of funds?
(i) Conversion of debentures into shares
(ii) Sale of temporary investments
(iii) Discharge of Bills Payable
(iv) Sale of fixed asset on credit
Answer
C. (iv) only
26
Which of the following is listed under the head ‘Application of Funds’?
Answer
D. Funds lost in operations
27
As per Accounting Standard 3, which of the following are considered as cash or
equivalent?
(i) Cash in hand
(ii) Demand deposits
(iii) Readily marketable securities
(iv) Cheques and Drafts on hand
Answer
D. All of the above
28
Which of the following statements is not true regarding cash flow statement?
Answer
A. It is based on accrual basis
29
Which ratio relates the shareholders’ funds to total assets of the enterprise?
Answer
B. Proprietary Ratio
30
When Sales amount to Rs. 4,00,000, Gross Profit ratio is 25% and average inventory is
Rs. 50,000, inventory turnover ratio is :
Answer
C. 6 times
31
Which of the following can be considered as the internal reason for using Human
Resource Accounting as a managerial tool?
(i) To improve the human resource management of the enterprise
(ii) To profile the enterprise and improve its image
(iii) To facilitate decisions like transfer vs retention, retrenchment vs retention etc.
(iv) To highlight the cost of employee turnover.
Answer
C. (i), (iii) and (iv) only
32
Which method of HRA assigns value for employees who are considered as ‘scarce’?
Answer
C. Opportunity Cost Model
33
Which of the following methods considers two concepts- individual costs’ and ‘positional
costs’?
Answer
C. Replacement Cost Model
34
In traditional accounting, expenses on human resources of an organisation are treated
as:
Answer
B. a charge against revenue
35
Which of the following is wrongly matched/paired in connection with Human Resource
Accounting :
(i) Historical Cost Approach – William Pyle
(ii) Replacement Cost Approach – Eric Flamholtz
(iii) Opportunity Cost Approach – Hekimian and Jones
(iv) Present Value of Future Earnings Approach – Lev and Schwartz
Answer
D. None of the above
36
Who developed the concept of ‘Fraud Triangle’?
Answer
A. Donald Cressey
37
Among the corporate frauds, which of the following statements is/are true?
(i) Bribery and corruption include schemes like kickbacks, shell company schemes.
(ii) The most common type of fraud in terms of occurrence is financial statement fraud.
(iii) The practice of presenting a picture rosier than what it is in reality is termed as
‘Ever Greening’.
(iv) Occupational frauds include frauds by not only employees or managers, but also by
legal representatives.
Answer
B. (i), (iii) and (iv) only
38
If a login to a system or an application from an unusual ID or location is observed, it
comes under which kind of flagging in connection with fraud detection?
Answer
A. Yellow Flag
39
Which of the following is not a technique among the seven recognised investigating tools
adopted by forensic specialists for fraud detection?
(i) Interviews of Knowledgeable Persons
(ii) Laboratory Analysis of electronic evidences
(iii) Undercover Operations
(iv) Physical and Electronic Surveillance
Answer
D. None of the above
40
Which of the following statements is/are false?
(i) Companies sometimes overstate the amounts of provisions to cover the expected
costs of liabilities, and such reserves are ‘cookie jar reserves’.
(ii) Many asset misappropriation schemes start at the entry point of the sale.
(iii) The type of fraud where an employee alters or converts one customer’s payments
and then uses a subsequent payment from another customer to cover the payment
from the previous customer is known as Channel Stuffing.
(iv) A forensic technique that correlates information found on multiple hard drives is
called Cross-drive analysis.
Answer
B. (iii) only
41
Which of the following defines marketing?
Answer
D. All of the above
42
Which forecasting technique involves gathering data from experts?
Answer
A. Delphi method
43
Which concept focuses on creating shared value?
Answer
D. Co-creation
44
Consider the following statements :
I. The production concept prioritizes quality and efficiency.
II. The selling concept focuses on customer needs.
Answer
B. Only I is true.
45
Evaluate the following statements :
I. Customer relationship marketing aims to build long-term relationships.
II. Database marketing involves collecting customer data.
Answer
A. Both I and II are true.
46
Evaluate the following statements :
I. Content marketing aims to attract and retain customers.
II. Content marketing focuses solely on promotional content.
Answer
B. Only I is true.
47
Consider the following statements :
I. Co-creation involves customer participation in product development.
II. Co-creation increases customer loyalty.
Answer
A. Both I and II are true.
48
Evaluate the following statements :
I. Production Concept prioritizes efficiency.
II. Product Concept focuses on quality.
III. Marketing Concept prioritizes customer needs.
Answer
A. I, II, and III are true
49
Consider the following statements :
I. Rural marketing targets low-income customers.
II. Rural marketing requires unique distribution channels.
III. Rural marketing focuses on agricultural products.
Answer
A. I and II are true
50
Which method estimates current demand using sales data?
Answer
A. Moving average method
51
Which of the following characteristics is NOT typical of bureaucracy?
Answer
C. Flexibility
52
Who proposed the administrative theory of management?
Answer
B. Luther Gulick
53
Which theory emphasizes flexibility and adaptability?
Answer
A. Contingency Theory
54
What is turnaround management?
Answer
D. All of the above
167/2024 10 A
55
Consider the following statements:
I. Scientific management emphasizes efficiency and productivity.
II. Bureaucratic theory prioritizes flexibility and adaptability.
Answer
B. Only I is true
56
Evaluate the following statements:
I. Human relations theory emphasizes social factors and employee needs.
II. Behavioral theory focuses solely on organizational structure.
Answer
B. Only I is true
57
Evaluate the following statements:
I. Redundancy management involves downsizing and restructuring.
II. Redundancy management prioritizes employee well-being.
Answer
A. Both I and II are true
58
Evaluate the following statements:
I. Emotional intelligence involves managing emotions.
II. Emotional intelligence is essential for effective leadership.
Answer
C. Both I and II are true
59
Which management approach prioritizes?
I. Efficiency and productivity.
II. Employee satisfaction.
Answer
A. Classical Theory
60
Evaluate the following statements:
I. Total Quality Management (TQM) emphasizes continuous improvement.
II. Six Sigma methodology reduces defects.
III. Lean management enhances efficiency.
Answer
A. I, II, and III are true
61
Consider the following statements :
(i) A budget is a mechanism to plan for the firm’s operations and resources
(ii) Budget should quantify the revenues to be realized from products/services and the
expenses to be incurred on goods/services used in generating revenues.
(iii) A budget is a comprehensive and coordinated plan expressed in non-monetary
terms.
Which of the above statement is/are correct with regard to budget?
Answer
A. Statement (i) and (ii)
62
Which of the following is not considered as a component of operating budget?
Answer
C. Cash Budget
63
Consider the following statement:
(i) Accept the project if its Internal Rate of Return is higher than the opportunity cost
of capital
(ii) Accept the project if its Internal Rate of Return is lower than the opportunity cost
of capital
(iii) The decision maker may indifferent if the Internal Rate of Return is equal to the
opportunity cost of capital.
Which of the above statement is/are correct regarding the acceptance or rejection rule of
Independent Projects using the Internal Rate of Return as an investment evaluation
criteria?
Answer
B. Statement (i) and (iii)
64
Consider the following statements:
(i) In mutually exclusive project, accept the project with the highest positive Net
Present Value.
(ii) In independent project, if Net Present Value exceeds zero, reject the project.
(iii) Zero Net Present Value implies that the firm is indifferent to accepting or rejecting
the project.
Which of the above statement is/are not correct?
Answer
B. Statement (ii) only
65
Profitability Index is calculated by:
Answer
D. Present value of net cash inflows ÷ Initial cash outlay
66
Consider the following statements:
(i) Net Present Value measures absolute value while Internal Rate of Return
measures Rate of Return.
(ii) The project with positive Net Present Value will have profitability index greater
than one.
(iii) If the Discount rate is less than Internal Rate of Return, then the project has
negative Net Present Value.
Which of the above statement is/are not correct with regard to Investment evaluation
criteria?
Answer
C. Statement (iii) only
67
Cash Rs.10,000:
Inventory Rs.12,000
Accounts Payables Rs.15,000
Accounts Receivables Rs.8,000
Then, the Net Working Capital is
Answer
B. Rs. 15,000
68
Inventory Conversion Period is 85 days:
Payable Deferral Period is 36 days
Receivable Collection Period is 28 days
then, Cash Conversion Cycle Period is
Answer
A. 77 Days
69
Which of the following statement is correct regarding Commercial Paper issue in India?
Answer
D. The tangible net worth of the issuing company as per the latest audited
balance sheet is not less than Rs.4 Crores.
A 13 167/2024
70
Which of the following is considered as an informal and spontaneous source of finance?
Answer
A. Trade Credit
71
Which of the following is not an element of audit risk?
Answer
D. Financial risk
72
A system where the auditor takes up his work of checking the books of accounts and
other related documents only at the end of the accounting period is known as:
Answer
C. Periodical audit
73
The process of verifying documentary evidence that supports and substantiates
transactions is known as:
Answer
B. Vouching
74
Match List I with List II and choose correct combination from the following codes:
List I List II
(i) Internal control
Answer
D. Independent appraisal of activity within an organization
for the review of accounting, financial and other
business practices.
75
An independent assessment or examination of the extent to which an organization,
programme or scheme operates economically, efficiently is known as:
Answer
A. Performance audit
76
An audit report in which there is no qualified or adverse opinion or disclaimer of opinion
in the report is known as:
Answer
D. Clean report
77
In case of subsequent auditor for existing government companies in India, auditor is
appointed by:
Answer
A. Comptroller and Auditor General of India
78
Which of the following statement is correct regarding company audit?
Answer
D. An auditor shall make report to the members of the company on the accounts
examined by him.
79
In auditing, CAAT stands for:
Answer
C. Computer Assisted Audit Technique
80
A detailed plan of work, prepared by the auditor, for carrying out an audit is knowns as:
Answer
B. Audit Programme
81
The Foreign Exchange Management Act (FEMA) came into effect from :
Answer
C. January 1, 2000
82
Which of the following statement is/are correct about international monetary system?
(i) The First phase of international currency system was the Bretton Woods system
(1944-71)
(ii) During Bretton Woods system the gold standard system was used to determine the
values of national currencies.
Answer
D. Neither (i) nor (ii)
A 15 167/2024
83
The Marshall – Lerner condition is associated with which approach to Balance of
Payment?
Answer
A. Elasticity Approach
84
Which of the following statement is / are correct about the value of currency options?
(i) At any point of time the value of a currency option can never be negative.
(ii) On exercise date the option value must be equal the greater of zero and the
intrinsic value of the option.
Answer
C. (i) and (ii)
85
———— is a single, summary statistical measure of possible loss in value of the portfolio
due to normal market movements in the underlying risk factors over a given time
horizon.
Answer
D. Value at Risk
86
To give recommendations regarding capital account convertibility, RBI appointed a
committee under the chairmanship of :
Answer
B. S.S. Tharapore
87
Which of the following statement is / are correct about “exposure netting” technique of
managing foreign exchange risk?
(i) A firm can offset a long position in a currency with a short position in that same
currency.
(ii) If the exchange rate movements of two currencies are positively correlated, then
the firm can offset a long position in one currency with a short position in the other
currency.
(iii) If the currency movements are negatively correlated, then short
Answer
C. All of the above (i), (ii) and (iii)
88
Which of the following is an international reserve asset created by IMF in 1969 to
support the Bretton Woods fixed exchange rate system?
Answer
B. Special Drawing Rights (SDRs)
89
Which of the following statement is / are correct about Balance of Payment
Answer
A. Only (i)
90
In a currency swap, two parties exchange principal and interest payments in different
currencies. Which of the following is NOT a primary reason for companies to enter into a
currency swap agreement?
Answer
C. To avoid making any payments on borrowed funds
91
In a portfolio, the risk reduction is greater when the security returns are :
Answer
A. negatively correlated
92
The variability in EPS due to the presence of debt in the capital structure of a company
is referred to as :
Answer
C. Financial risk
93
The portfolios lying between the global minimum variance portfolio and the maximum
return portfolio on the efficient frontier represents:
Answer
B. Efficient portfolios
94
A stock has beta less than 1.0, then which of the following statements are true?
Answer
A. Variability in its returns would be comparatively lesser than the market
variability.
95
Two securities P and Q ,with expected returns of 10 percent and 15 percent respectively,
and standard deviation of 30 percent and 50 percent respectively. Calculate the variance
of the portfolio weighted equally between the two securities if their correlation is 1:
Answer
B. 1600
96
———— is the statistical measure that indicates the interactive risk of a security
relative to others in a portfolio of securities:
Answer
D. Covariance
97
Which of the following statements are correct?
(i) SML and CML postulates linear relationship between risk and return.
(ii) CML is the basis of the capital asset pricing model.
(iii) CML is valid only for efficient portfolios.
(iv) Risk defined in SML is systematic risk.
Answer
B. (i), (iii) and (iv)
98
The risk premium in CAPM is the excess of :
Answer
A. market return over risk free return
99
Which of the following statements are true?
(i) Beta is the measure of the variability of that asset relative to the variability of the
market as a whole.
(ii) For calculation of beta, the return of the individual security is taken as the
dependent variable and the return of the market index as independent variable.
(iii) Beta is an index of the systematic risk of an asset.
(iv) Beta is calculated from historical data of returns to measure the systematic risk of
a security.
Answer
D. All of the above
100
Variability in return caused due to cost push inflation is a case of :
Answer
A. Systematic risk
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