| Post Name | LOWER DIVISION ACCOUNTANT - KERALA SMALL INDUSTRIES |
|---|---|
| Question Paper Code | 051/2025 |
| Category Code | 382/2024 |
| Date of Test | 14 May 2025 |
| Medium of Question | ENGLISH |
| Exam Type | OMR Examination |
| Total Questions | 100 |
1
Which of the following statements about financial accounting principles are correct ?
1
The Accrual Concept requires that revenue and expenses be recorded when
they are incurred, not when cash is received or paid.
The Matching Principle ensures that expenses related to revenue are
recognized in the same accounting period as the revenue.
The Prudence Concept states that revenue should be recognized as soon as it
is reasonably possible, but expenses should be deferred.
The Going Concern Concept assumes that a business will not continue its
operations indefinitely.
Answer
A. Only 1 and 2 are correct
2
Ravi, a sole trader, prepared his Trading and Profit and Loss Account for the year but
forgot to adjust for outstanding salaries of ` 10,000 and depreciation on machinery of
` 5,000. What will be the impact on his net profit if these adjustments are not made ?
Answer
A. The net profit will be overstated by ` 15,000
3
A company, XyZ ltd., purchased machinery on January 1, 2023, for ` 10,00,000.
The accountant expensed the entire amount in the Profit and Loss account for
2023 instead of capitalizing it. Which accounting concept has been violated ?
Answer
B. matching Concept
4
Assertion (A) : When a new partner is admitted, the existing goodwill of the firm is
adjusted among the old partners.
reason (r) : The new partner is required to compensate the old partners for their
share of goodwill.
A) Both
Answer
A. and
5
Which of the following statements about Consignment Accounting are correct ?
1. The Consignor records the goods at cost or invoice price in the books.
2. Abnormal loss is credited to the Consignment Account and debited to the
Abnormal Loss Account.
3. The Consignee records purchases as inventory in their books.
4. Del Credere Commission is given to the consignee for bearing credit risk.
Answer
B. 1,2 and 4 only
6
As per the Companies Act, 2013, which of the following is not a part of the
company’s final accounts ?
Answer
D. Appropriation Account
7
Assertion (A) : A firm with a high debt-equity ratio is considered highly leveraged.
reason (r) : A high debt-equity ratio indicates a higher proportion of equity
financing in the capital structure.
A) Both
Answer
C. is the correct explanation of
8
Which of the following methods is most commonly used for calculating the Cost of
Equity (Ke) ?
Answer
D. dm)
9
Which inventory valuation method is not allowed under IFRS ?
Answer
C. LIFO
10
A company announces a 2-for-1 stock split. What will be the effect on its market
capitalization, assuming no other external factors influence the stock price ?
Answer
C. It remains unchanged
11
match the inventory management techniques with their purpose.
Technique Purpose
A. Just-in-Time (JIT) 1. Reduces inventory holding cost
B. Economic Order Quantity (EOQ) 2. Optimizes order size
C. ABC Analysis 3. Classifies inventory by importance
d. Safety Stock 4. Prevents stockouts
Answer
B. 1,
12
Which of the following statements about financing decisions are correct ?
1. The financing decision determines the sources of funds used to finance assets.
2. A firm should always prefer equity financing over debt financing.
3. The objective of financing decisions is to maximize shareholder wealth while
minimizing cost.
4. The choice between debt and equity depends on factors like cost of capital,
financial risk, and control considerations.
Answer
B. 1, 3 and 4 only
13
Which of the following statements regarding costing techniques is correct ?
i. The technique aspect of costing refers to principles and rules used to determine
costs.
ii. The process aspect of costing includes routine cost determination in job or
process costing.
iii. Costing does not involve standard costing or marginal costing.
Answer
A. Only i and ii are correct
14
Which of the following are objectives of material control ?
i. To minimize the total cost, including ordering and carrying costs.
ii. To provide an unlimited stock of materials to avoid shortages.
iii. To maintain proper and up-to-date records of inventory.
Answer
C. Only i and iii are correct
15
Which of the following statements about Standard Cost is correct ?
i. Quantity standards require frequent revisions, while price standards should
remain unchanged.
ii. Standard cost is a predetermined calculation of costs under specific working
conditions.
iii. Standard cost is determined based on engineering and technical specifications.
Answer
B. Only ii and iii are correct
16
Which of the following statements about plant layout and its role in cost reduction
is correct ?
i. A well-planned plant layout reduces unnecessary movement of men and
materials.
ii. Frequent modifications in plant layout should be encouraged for better
efficiency.
iii. Poor planning of plant layout can result in waste of time, effort and resources.
Answer
C. Only i and iii are correct
17
Which of the following statements are correct regarding break-even analysis ?
i. Selling prices and pricing policies will remain constant at all sales levels.
ii. The total of fixed costs remains constant at all sales levels; the unit variable
costs remain the same.
iii. Break-even analysis assumes that volume is the only important factor affecting
cost behavior.
Answer
D. All i, ii and iii are correct
18
Which of the following statements describe the characteristics of indirect labour ?
i. Indirect labour cannot be easily identified with a specific job, contract, or work
order.
ii. Indirect labour may or may not vary directly with the volume of output.
iii. Indirect labour cost is a part of prime cost.
Answer
A. Only i and ii are correct
19
Which of the following correctly differentiate formal and informal organisations ?
i. Formal organisations are created by management, while informal organisations
emerge naturally.
ii. Informal organisations are always larger than formal organisations.
iii. Formal organisations focus on efficiency and goal achievement, whereas
informal organisations provide social and psychological satisfaction.
Answer
C. Only i and iii are correct
20
Which of the following statements correctly describe the principles of Scientific
Management as given by F.W. Taylor ?
i. Scientific management discourages co-operation between management and
workers.
ii. It focuses on replacing rule-of-thumb methods with scientific studies of work.
iii. It emphasizes the scientific selection and development of workers.
Answer
B. Only ii and iii are correct
21
Which of the following are key assumptions of the Great man Theory of
Leadership ?
i. leaders are born, not made.
ii. leadership qualities cannot be acquired through formal education.
iii. Situational factors play a key role in leadership effectiveness.
Answer
A. Only i and ii are correct
22
Which of the following statements about Quality Circles are correct ?
i. Quality Circles are only applicable to the manufacturing industry.
ii. Quality Circles implies the development of skills and creativity of employees
through work experience and participation.
iii. Quality Circles help in sustaining motivation and commitment towards work
excellence.
Answer
B. Only ii and iii are correct
23
Which of the following are salient features of management ?
i. management is goal-oriented and aims to achieve organizational objectives.
ii. Management is a distinct process consisting of planning, organizing, staffing,
directing, and controlling.
iii. management integrates human and non-human resources.
Answer
D. All i, ii and iii are correct
24
Which of the following statements correctly compare Theory X and Theory y of
motivation ?
i. Theory X assumes people need external motivation, while Theory y assumes
they are self-motivated.
ii. Theory X supports centralised authority, while theory y supports decentralised
decision making.
iii. Theory X emphasises autocratic leadership, while Theory y promotes
democratic and supportive leadership.
Answer
D. All i, ii and iii are correct
25
Below given statements are on ‘Independent directors’ as stated in the
Companies Act, 2013. you are directed to identify the wrong statement.
Answer
C. Before placing the name in the general meeting a prior approve from the
Company Registrar, in a prescribed format shall be obtained
26
Following statements are on Annual General meeting mentioned in Companies
Act, 2013. Identify the correct statements.
Answer
A. First AGM shall be held within 9 months from closing of first financial year
27
As per the provisions of the Companies Act 2013, as amended; who among the
following cannot file a petition for the winding up of a company before the Tribunal ?
Answer
A. Consumers
28
Given below statements are on Audit Committee. Identify the statement which is
wrong.
Answer
B. All members of the audit committee should have the ability to read financial
statements
29
The below given statements are on Board of directors of a Company. Identify the
wrong statement.
Answer
D. An independent director can be a whole-time director
30
Following Statements are on liquidation of a company as per Companies Act, 2013.
Identify the wrong statement.
Answer
D. Removal and replacement of liquidator can only be done by the High Court
31
‘‘Ceteris Paribus’’ is an important assumption in demand analysis. Which of the
following is true with regards to it ?
Answer
A. It is a latin phrase meaning ‘‘other things being equal’’
32
Changes in the following can be a reason for ‘shift in demand curve’, of a goods or
service, except
Answer
B. Its Price
33
In demand analysis, goods are categorised into ‘normal’ and ‘inferior’ goods,
based on the effect of __________ on its quantity sold/demanded.
Answer
C. Income of Consumers
34
Calculate price elasticity of demand from the following demand schedule.
Period Price demand
1 100 240
2 110 235
Choose the correct answer.
Answer
Question Cancelled
35
In which of the following demand elasticity, total revenue will decrease if the prices
are increased ?
Answer
D. Elastic
36
What is the technical term that states a situation in which the firm sets different
price for each individual customer and by doing so, aim maximum possible sales
revenue ?
Answer
B. Perfect Price discrimination Policy
37
As per the Income Tax Act, 1961, the residential status of a person is determined
on the basis of
Answer
C. Period of stay in India
38
The Rate of Income Tax in India in every year is fixed by
Answer
D. Annual Finance Bill passed in the Parliament
39
Under the head Income from House Property, _______ is charged to tax.
Answer
A. Annual Value of the Property
40
In case of an Individual, the exempted limit of income for the assessment year
2025-26 is
Answer
B. 3,00,000
41
Salary of mPs and mlAs are taxable under the head
Answer
B. Income from other sources
42
Which among the following is legally allowed under Income Tax Act, 1961 ?
Answer
C. Tax Planning
43
The process of inclusion of the name of a share in the list of shares traded in a
stock exchange is called
Answer
B. listing
44
The process used during an Initial Public Offering (IPO) to determine the price at
which shares will be offered to investors is called
Answer
A. Book Building
45
___________ is the process by which companies convert the physical share
certificates into electronic format.
Answer
D. dematerialisation
46
The financial process in which illiquid assets, such as loans or receivable, are
bundled together and converted into tradeable securities is called
Answer
B. Securitisation
47
The direct sale of shares to investors is called
Answer
A. Private Placement
48
Who is the regulator of Capital Market in India ?
Answer
B. Securities and Exchange Board of India
49
Choose the correct statements from the following :
i. It is a truism that marketing begins and end with consumers.
ii. Free samples, coupons, free trials, etc. are examples of sales promotion
measures oriented towards the consumers.
iii. marketing mix is a part of the Product mix.
Answer
A. Statements i and ii alone are correct
50
Choose the true statements from the following :
i. Advertising is a paid form of personal selling.
ii. Pre-test or copy test is conducted after the publication of advertisement in the
public domain.
iii. Public Relation is carried out through the process of salesmanship.
Answer
D. None of the statements are true
51
Identify the wrong statements from the following :
i. In the Promotion mix, the push blend emphasise on impersonal selling
whereas the pull blend emphasise on personal selling.
ii. Sales Promotion includes advertising, public relations and personal selling.
iii. Personal selling refers to face to face communication with the customer for the
purpose of making sales.
Answer
A. Statements i and ii alone are wrong
52
Identify the correct statements from the following :
i. The correct sequence of consumer decision making process include stages
such as identification of alternatives, recognition of unsatisfied need, purchase
decision, and evaluation of alternatives.
ii. Attitudes, beliefs, perception, motivation, etc. of individuals are the Psychological
factors influencing consumer behaviour.
iii. Consumer behaviour is the study of consumers’ buying behaviour in terms of
what, when, where, how much, etc. of goods and services.
Answer
B. Statements ii and iii alone are correct
53
Which of the following statement is true ?
i. Psychographic segmentation refers to grouping of people into homogeneous
segments on the basis of age, income, occupation, etc.
ii. CRm aims at immediate sales improvement and has only narrow scope of
making short term results.
iii. demand of industrial goods are primary in nature and are not depended on the
demand of consumer goods.
Answer
D. None of the statements are true
54
Which of the following statement is false ?
i. line depth refers to the number of product variants in a product line.
ii. length of Product mix refers to the number of products sold in all product lines.
iii. In Growth stage of the Product life Cycle, the demand for the product reaches
its saturation point.
Answer
C. Statement iii alone is false
55
Which of the following statements are right ?
i. Internal Check has a wider scope and will contain the Internal Control System
and the Internal Audit.
ii. Internal Auditor will conduct the statutory audit and will report to the
shareholders.
iii. Internal Check is a work routine in which the work done by one staff is
automatically counter checked by the work of another.
Answer
D. Statement iii alone is right
56
Which of the following statements are wrong ?
i. Audit Programme is prepared by the company and will be submitted to the
audit assistants during the conduct of audit.
ii. Audit Note will contain all those un-cleared queries noted by the audit staff which
requires further clarification from the company.
iii. Audit Working Papers will be preserved by the auditor for a reasonable period
of time.
Answer
A. Statement i alone is wrong
57
Which among the following statements are true ?
i. Current Audit File will contain copy of the memorandum and Articles of the
company.
ii. Test checking will be resorted by the auditor when there is strong internal check/
internal control system exist in the company.
iii. Surprise check will be made by the auditor after giving prior notice to the
company staff regarding date and time of check.
Answer
D. Statement ii alone is true
58
Which among the following statements are correct ?
i. Original purchase invoices, counterfoils of cheque book, counterfoils of pay in
slip, etc. are examples of primary vouchers.
ii. Vouching of cash book involves checking the documentary evidence of all
depreciation charges. debit Notes and Credit Notes.
iii. Verification involves the conformation of assets and liabilities that appear in the
balance sheet.
Answer
B. Statements i and iii alone are correct
59
Identify the incorrect statements from the following :
i. Auditor appointed at the first annual general meeting of the company shall hold
office for a continuous period of 20 years.
ii. A body corporate can be appointed as statutory auditor in companies.
iii. Statutory auditor of a company can be removed from the office before the
expiry of term by passing an ordinary resolution in the board meeting.
Answer
D. All statements are incorrect
60
Which of the following statements are true ?
i. Auditing is usually undertaken for a period of one financial year whereas
investigation is carried out for any period of time.
ii. Only a Chartered Accountant can be appointed as investigator.
iii. Auditor considers only prima facie evidence whereas investigator considers
substantive evidence.
Answer
Question Cancelled
61
Which option from Company Info menu is selected to create a new Company in
Tally ?
Answer
B. Create Company
62
Which option is used to open Company created in Tally ?
Answer
C. Select Company
63
In general, the financial year shall be from
Answer
A. 1st April of every year
64
ERP stands for
Answer
A. Enterprise Resource Planning
65
The home screen of tally is known as
Answer
B. Gateway of Tally
66
Which option is used to exit Tally ?
Answer
C. Quit
67
In Tally Prime, what is the use of stock groups ?
Answer
C. To classify different types of stocks based on similarities
68
What is the role of Godowns in Tally Prime ?
Answer
C. Store and manage stock items in different locations
69
Which report in Tally Prime provides detailed information about the movement of
inventory items ?
Answer
C. Stock Summary Report
70
What is the purpose of maintaining Batchwise details in Tally Prime ?
Answer
B. Track expiry dates and manufacturing details of stock items
71
Which type of inventory voucher is used in Tally Prime to record the Receipt of
goods into the inventory ?
Answer
B. Receipt Note
72
What is the function of Price List in Tally Prime ?
Answer
C. Specify selling price of stock items
73
Which of the following statements about Composite GST is correct ?
Answer
B. Businesses opting for the Composition Scheme cannot claim
Input Tax Credit (ITC).
74
Match the following GST returns with their purposes.
GST Retum
1. GSTR-1 b. Summary return for tax liability
2.GSTR-3B | a. Monthly/Quarterly return for outward supplies
3. GSTR-O
Answer
B. 1-a, 2-b, 3-c
75
Under normal circumstances, what is the minimum consignment value above
which generating an E-Way Bill becomes mandatory, except for certain exempted
cases ?
Answer
C. ` 50,000
76
Assertion (A) : The e-invoicing system under GST was made mandatory for
businesses with a turnover above ` 5 crore from August 2019.
reason (r) : E-invoicing helps in real-time tax reporting, reduces fraud and
ensures better compliance.
A) Both
Answer
D. B) Both (A) and (R) are correct, but (R) is not the correct explanation of (A)
C) (A) is correct, but (R) is incorrect
d) (A) is incorrect, but (R) is correct
77
Which of the following statements is/are correct regarding recent GST updates ?
Statement I : The QRmP (Quarterly Return, monthly Payment) scheme applies to
businesses with a turnover of upto ` 5 crore.
Statement II : From August 2023, e-invoicing became mandatory for all
businesses, regardless of turnover.
Answer
A. Only Statement I is correct
78
Assertion (A) : Ratio Analysis is an essential tool for financial decision-making.
reason (r) : The Current Ratio measures the profitability of a company.
A) Both
Answer
C. is the correct explanation of
79
A company’s Trial Balance showed the following balances.
• Sales Revenue : ` 5,00,000
• Cost of Goods Sold : ` 2,50,000
• Operating Expenses : ` 1,00,000
• Interest Expenses : ` 20,000
What is the Net Profit of the company ?
Answer
C. ` 1,30,000
80
Which of the following statements about Inventory Reports is/are correct ?
Statement I : Godown-wise stock reports help businesses track inventory across
multiple storage locations.
Statement II : The Aging Analysis Report categorizes inventory based on how
long it has been stored.
Answer
C. Both Statements are correct
81
A company’s Balance Sheet shows a high Accounts Receivable balance but a low
Cash Balance. What does this indicate ?
Answer
B. The company may face cash flow issues
82
Match the budgeting approaches with their descriptions.
A. Zero-Based Budgeting (ZBB) 1. Adjusts past budgets based on percentage
changes
B. Rolling Budget 2. Continuously updates the budget based on
actuals
C. Incremental Budgeting 3. Requires justification of every expense from
scratch
D. Flexible Budget 4. Varies budget levels based on activity changes
Answer
A. 3,
83
A company’s Cash Book shows a balance of ` 2,00,000, but the Bank Book shows
a balance of ` 1,80,000. Upon checking, the following discrepancies are found.
• Uncleared cheque deposits : ` 30,000
• Bank charges deducted but not recorded in cash book : ` 5,000
What should be the adjusted bank balance after reconciliation ?
Answer
A. ` 2,05,000
84
Among the following which is not a feature of Tally ?
Answer
B. Recruitment and Selection
85
Tally Audit allows the ________ to track changes in accounting information.
Answer
A. Administrator or an auditor profile user
86
_________ is an enhanced security system, which allows for encryption of the
company data.
Answer
B. Tally Vault
87
Tally has _______ formats for export of data from E-mail, Export and Upload
options.
Answer
C. Three
88
__________ in Tally display the tax amount of the concerned party/supplier.
Answer
A. TdS Reports
89
OdBC in Tally stands for
Answer
C. Open database Connectivity
90
Who developed GNUKhata ?
Answer
A. digital Freedom Foundation
91
GNUKhata has _________ predetermined account groups.
Answer
A. 13
92
Menu from which we get ‘Edit Account’ option in GNUKhata ?
Answer
D. master
93
Among the following which is not a predefined voucher type offered by GNUKhata ?
Answer
D. Inventory
94
In GNUKhata, Bank Reconciliation Statement is available from _______ menu.
Answer
B. master
95
Which is the Shortcut Keys for Credit note Voucher in GNUKhata ?
Answer
Question Cancelled
96
In a spreadsheet, letters are used to represent
Answer
C. Columns
97
In a computer spreadsheet, a pre-programmed formula is basically a
Answer
A. Function
98
In a computer, graphic representation of data is termed as
Answer
A. Chart
99
In a computer spreadsheet, a workbook is a group of
Answer
C. Worksheet
100
In a computer spreadsheet, sum, average, min and max are examples of
Answer
A. Functions
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