| Post Name | Internal Auditor - Department Kerala State Cooperative Marketing Federation Ltd |
|---|---|
| Question Paper Code | 093/2023/OL |
| Category Code | 302/2021 |
| Date of Test | 24 June 2023 |
| Exam Type | Online Examination |
| Total Questions | 100 |
1
Which of the following statements are true? (I) If the breakeven point is low and angle of incidence is large, the margin of safety is large and rate of proļ¬t is high. (II) If the breakeven point is low and angle of incidence is small, the margin of safety is low and rate of proļ¬t is low. (III) If the breakeven point is high and angle of incidence is small, the margin of safety is large and rate of proļ¬t is low. (IV) If the breakeven point is high and angle of incidence is large, the margin of safety is low and rate of proļ¬t is high.
Answer
D. Statement (I) and (IV) correct
2
Labour time variance arise due to
Answer
B. Lack of proper supervision
3
Which of the following statements are true? (I) Standard costing enables Management by Exception (II) Standard costing enables Management by Objective (III) Standard costing facilitates delegation of authority with responsibility
Answer
C. Statement (I) and (III) are correct
4
Which of the following is not considered as carrying cost?
Answer
D. Cost of receiving goods
5
In which of the following methods, inventory is valued at the latest prices prevailing in the market?
Answer
A. FIFO method
6
Which one of the following statements are not correct? (I) Loss of material due to ļ¬re is treated as overhead and included for calculating cost of production. (II) Salaries paid to salesmen come under direct cost and are included in the calculation of prime cost. (III) Stock of ļ¬nished goods are adjusted with the cost of production.
Answer
C. Only statements (I) and (II) are false
7
Which one of the following is not correct?
Answer
D. Sales for desired proļ¬t = Desired proļ¬t / Contribution per unit
8
Which one of the following is not an assumption of Marginal costing?
Answer
B. Selling price per unit will vary with regard to change in volume of sales
9
Which one of the following statement is not correct relating to Time wage system?
Answer
C. Income through wages is uncertain and there is no job security
10
Determine P/V ratio if sales is Rs. 1,00,000, Fixed cost is Rs. 30,000 and proļ¬t is Rs. 20,000.
Answer
D. None of the above
11
The going concern concept is the underlying basis for
Answer
A. Depreciating ļ¬xed assets over their useful lives
12
Which of the following statements are correct with relating to Accounting Standard? (I) AS 2 relates to Valuation of Inventories (II) AS 13 relates to Accounting for Amalgamation (III) AS 9 relates to Investments (IV) AS 10 relates to Accounting for Fixed Assets
Answer
B. Statements (I) and (IV) are correct
13
Income tax paid by a proprietor Rs. 4,000 appearing in the Trial balance
Answer
D. To be deducted from Capital in Balance sheet
14
Debenture issued as collateral security for Rs. 20,000 will be debited to
Answer
A. Debenture suspense account
15
Which of the following statements are correct with regard to the matching concept of accounting? (I) An income earned by a business during a particular period is determined by matching expense with revenue. (II) In matching process, only such revenues are taken into account which are regarded as realized. (III) In case of gold mining industries revenue is recognized in the accounting period in which the gold is mined. (IV) In case of long term contracts, revenue is generally recognized only on full completion of the contract.
Answer
A. Statements (I), (II) and (III) are correct
16
Which of the following conditions must satisļ¬ed in order to ensure forfeiture of shares is valid? (I) The power of forfeit of shares must expressly give by the company's memorandum of association. (II) There should be a default by the shareholder in payment of a valid call. (III) A notice of demand, requiring the shareholder to pay calls of a speciļ¬ed amount within the speciļ¬ed period must be given. (IV) The board of directors must pass a resolution for forfeiture of shares.
Answer
B. Statements (II), (III) and (IV) are correct
17
Which one of the following is correct?
Answer
C. Gross proļ¬t + Direct Expenses + Purchases + Opening Stock ā Closing Stock = Sales
18
Which of the following statements are correct regard to consignment? (I) The abnormal loss on consignment is debited to consignment account (II) Overriding commission is calculated on credit sales (III) Del-credere commission is allowed to the consignee to bear abnormal loss (IV) Good send on consignment is a nominal account
Answer
D. None of the above
19
Which of the following reserves that can be used for issue of bonus shares? (I) Realized capital proļ¬ts and reserves arising from proļ¬t on sale of ļ¬xed assets received in cash. (II) Balance in debenture redemption reserves account before redemption takes place. (III) Security premium arising on issue of shares on amalgamation or take over. (IV) Capital Redemption Reserves Account created at the time of redemption of redeemable preference shares out of the proļ¬ts.
Answer
D. Statements (I) and (IV)
20
Which of the following statements are correct? (I) In case the new partner is unable to bring in cash for goodwill, a goodwill account may be raised in the ļ¬rm's book as per AS-26. (II) Inferred goodwill is calculated when the new partner does not bring cash separately for share of goodwill. (III) Revaluation account is prepared when the ļ¬rm is amalgamated with another ļ¬rm.
Answer
C. Statements (II) and (III) are correct
21
In case of Companies enjoying stable growth rate and stable rate of dividend which of the following dividend approach to be more suitable to use?
Answer
D. Realized yield approach
22
Which of the following are the eļ¬ects of Share split? (I) Number of outstanding shares increases (II) Future earnings per share will increase (III) Price of the share increases (IV) No cash inļ¬ow involved
Answer
D. Statement (I) and (IV) are correct
23
Which of the following are the assumptions of Gordon's model of dividend decisions? (I) The Internal rate of return is constant (II) The cost of capital of the ļ¬rm is constant (III) The dividend per share is assumed to be constant (IV) The growth rate of the ļ¬rm is constant (V) Firms cost of capital is assumed to be greater than growth rate
Answer
D. Statements (I), (II), (IV) and (V) are correct
24
When a ļ¬rm uses more short term ļ¬nancing, then that required to ļ¬nance the temporary or variable current assets the ļ¬rm is said to follow :
Answer
A. An aggressive approach of ļ¬nancing
25
Gross operating cycle of working capital represents the aggregate of (I) Raw material storage period (II) Work-in-progress holding period (III) Finished goods storage period (IV) Credit period allowed by supplier (V) Debtors collection period allowed
Answer
D. Statements (I), (II), (III) and (V) are correct
26
From the following information calculate the Maximum Stock level Maximum Consumption 200 units per day Minimum Consumption 150 units per day Normal Consumption 160 units per day Reorder level 3000 units Reorder period 10 to 15 days Reorder quantity 1600 units Normal reorder period 12 days
Answer
D. 3100 units
27
Which of the following statements is incorrect with regard to the legal provisions of payment of dividend of the company? (I) Dividends can be paid out of proļ¬ts or undisturbed proļ¬ts of previous years or money provided by the central government. (II) The dividends must be paid within 42 days from the date of declaration. (III) Dividends will be based upon the issued capital of the shares. (IV) Dividends can be paid out of proļ¬ts and capital of the company.
Answer
Question Cancelled
28
Who is considered as the founding father of social system school?
Answer
B. Chester I Bernard
29
Relay Assembly Room Experiment is connected with ________.
Answer
B. Human Relation School
30
In which of the following methods of performance appraisal Halo error is minimum?
Answer
D. 360Ā° Appraisal
31
Theory X and Theory Y of Motivation was proposed by
Answer
A. Douglas McGregor
32
_______ implies increasing the contents of a job or the deliberate upgrading of responsibility, scope and challenges in work.
Answer
A. Job Enrichment
33
First auditor of the Company other than Government Company shall be appointed by Board of Directors within ________ days from the date of registration.
Answer
A. 30
34
An Individual who has completed his term shall not be eligible for re- appointment as auditor in the same company for _______ years from the completion of his term.
Answer
C. 5
35
The audit committee should convene at least ________ meetings in a year.
Answer
A. 4
36
Chartered Accountants have to retain the working papers for
Answer
D. 7 years
37
Current Audit ļ¬le contains
Answer
D. Audit Programme
38
Internal Auditor of Public Limited Company is appointed by ________.
Answer
B. Board of Directors
39
_______ means "Proving the truth".
Answer
A. Veriļ¬cation
40
_______ is termed as "backbone of auditing".
Answer
B. Vouching
41
________ refers to the documents, records, books and ļ¬les which enable an auditor to trace a transaction from its source till it is summed up recorded and presented in an accounting report.
Answer
C. Audit Trial
42
Which of the following is/are audit risk?
Answer
D. All
43
Which of the following is not an element of internal control system?
Answer
B. Responsibility Control
44
Which of the following audit report gives a favourable position of the Organisation?
Answer
B. Unqualiļ¬ed Report
45
Which of the following services cannot be rendered by an Auditor as per Companies Act 2013?
Answer
D. Providing Investment Advisory Service
46
An audit Committee should have a minimum of _________ number of directors.
Answer
A. 3
47
20 As per Companies Act 2013 the Company may be wound up by ________ and Voluntary wind up.
Answer
D. National Company Law Tribunal
48
Every Company shall hold the ļ¬rst Board meeting within ________.
Answer
A. 30 days of its incorporation
49
Section 173(2) of Companies Act 2013 allows directors to attend the Board Meeting
Answer
D. Any of the above
50
Which of the following statement shows Surplus/Deicit on winding up of Company?
Answer
D. List H
51
Which of the following statement is true about Implied Contract?
Answer
A. Contract which is not made in words.
52
As per the negotiable instruments Act, 1881, Section 9 deļ¬nes ________.
Answer
B. Holder in due course
53
Section 2A of Payment of Gratuity Act, 1972 deļ¬nes ________.
Answer
A. Continuous Service
54
In which of the following circumstances, a company may wind up by Tribunal?
Answer
D. All of these
55
The rate of tax for the short term capital gain speciļ¬ed in Section 111 A is _______.
Answer
B. 15%
56
Which of the following is a fully taxable allowance?
Answer
A. Deputation Allowance
57
In the computation of Income from House property, Rule 4 is related to _______.
Answer
B. Un realised rent
58
Which of the following statement is correct about the computation of pre-construction period?
Answer
C. Period starts from the date of loan taken up to the end of ļ¬nancial year just preceding the year in which the construction of house property has been completed or the date of repayment of loan, whichever is earlier.
59
This of the following is leviable under both GST and central Excise.
Answer
A. Tobacco products
60
Which of the following is not true about composite supply?
Answer
D. One of which is not a principal supply.
61
"Exempt Supply" under GST means supply of any goods or services or both ________.
Answer
C. Both (1) and (2)
62
Which of the following order of setoļ¬ of Input Tax Credit is wrong?
Answer
B. ITC of CGST can be used to pay SGST, CGST and IGST in that order
63
Which of the following statement is true about cloud computing?
Answer
A. It provides computation, software, data access and storage services that do not require end-user knowledge of the physical location and conļ¬guration of the system that delivers the services.
64
_________ is a computerised stored value that holds credit card information, electronic cash, owner identiļ¬cation and address information.
Answer
A. Electronic Wallet
65
Which of the following statement is not true about Customer Relationship Management?
Answer
C. It provides vital cross-functional information on business performance to managers quickly to signiļ¬cantly improve their ability to make better decisions in a timely manner across the entire business enterprise.
66
Which of the following is true about Supply Chain Management?
Answer
C. All of these
67
Which of the following is not a HRM function?
Answer
D. None of these
68
Which of the following is not a type of ethics?
Answer
D. Discriminal Ethics
69
What are the diļ¬erent employment Discrimination practices?
Answer
C. Both (1) and (2)
70
Which of the following is not an unethical advertisement?
Answer
C. Both (1) and (2)
71
Buying or selling a security in breach of a ļ¬duciary duty or other relationship of trust and conļ¬dence while in possession of material, non public information about the security is termed as __________.
Answer
A. Insider Trading
72
Which of the following is the guideline to handle communication ethics?
Answer
D. All of these
73
________ is oļ¬cial discussion between representatives of opposing group who are trying to reach an agreement.
Answer
C. Negotiation
74
Which one of the following is not a special report?
Answer
D. Inspection report
75
Which one of the following is not given in advance?
Answer
D. None of these
76
Which country is associated with the Co-operative movement INDUSCOS?
Answer
D. China
77
Which among the following is not true about Raiļ¬eisen Societies? (i) Limited Area of Operation (ii) Limited Liability (iii) No strict supervision on Utilization of loan (iv) No Dividend distribution
Answer
C. Only (ii), (iii)
78
VAMNICOM is controlled and administered directly by
Answer
A. NCCT
79
Which among the following is the publication of Department of Co- operation, Government of Kerala?
Answer
B. Sahakarana Veedhi
80
The committee recommended the organisation of co-operative credit societies on Raiļ¬eisen model with unlimited liability
Answer
C. Committee consisting of Sir Edward Law, Frederick Nicholson and Dupernix
81
Kerala Bank is oļ¬cially come into force on
Answer
B. 29-11-2019
82
Which is the National level apex agency of agricultural marketing co- operatives?
Answer
B. NAFED
83
Double Compartment System is a
Answer
A. Stock accounting procedure in Consumer Co-operatives
84
Which among the following is true about the period of three phases of Operation Flood by NDDB?
Answer
D. Phase-I (1970-1980), Phase-II (1981-1985), Phase-III (1985-1996)
85
The Books and Registers are kept by a Co-operative society as per the provisions of
Answer
B. Rule 29
86
A Bank reconciliation statement is prepared for
Answer
C. Knowing the diļ¬erence in cash and bank balance
87
'Adjusting heads due To' represents
Answer
A. The amount advanced to outsiders
88
The closing balance of an Asset is calculated by
Answer
C. Opening balance + Receipt ā Payment
89
The ļ¬nal authority of a co-operative society is
Answer
C. Annual General Body
90
The minimum percentage of Net proļ¬t that can be transferred to General Reserve and the maximum percentage of Net Proļ¬t that can be distributed as Dividend
Answer
A. 15% and 25%
91
Inquiry in a Co-operative Society is conducted as per
Answer
A. Section 65 and Rule 66
92
Co-operative Service Examination Board was established under section
Answer
B. 80 B
93
The audit cost means
Answer
B. Fee and allowances payable to Concurrent Auditors
94
A dispute in a co-operative society can be eļ¬ectively adjudicated by the process of
Answer
C. Arbitration
95
Which among the following is not with in the powers of The Kerala Co- operative Tribunal?
Answer
D. Surcharge
96
The maximum audit fee payable by a Co-operative society shall not exceed
Answer
C. Rs. 1,00,000
97
CORE banking means
Answer
C. Centralised Online Real-time Exchange
98
IMPS can be expanded as
Answer
D. Immediate Payment Service
99
Which among the following is a New Generation Private Bank?
Answer
A. DCB Bank
100
The Negotiable Instruments Act was enacted in the year
Answer
D. 1881
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