| Post Name | Secretary Cum Finance Manager - Kerala State Development Corporation for CCSCRC Ltd |
|---|---|
| Question Paper Code | 003/2025/OL |
| Category Code | 440/2022 |
| Date of Test | 22 January 2025 |
| Exam Type | Online Examination |
| Total Questions | 100 |
1
Which of the following statements are CORRECT with respect to the accounting for the issue of shares ? i. Companies Act 2013 prohibits the issue equity shares at a discount ii. Calls in Arrears account will be shown as a deduction from the called up capital to arrive the paid up share capital iii. Balance in the Forfeited Shares account will be shown as a deduction from the paid up capital
Answer
A. Statements i and ii are correct
2
Which of the following statements are INCORRECT with respect to the accounting for the issue and redemption of debentures ? i. When Debentures are issued as collateral security, the Debenture Suspense Account will be shown in the liability side of balance sheet ii. Loss on Issue of Debenture a/c will be debited to the extent of redemption premium in the case the debentures are issued at par but redeemable at premium iii. DRR is to be created at a minimum of 10% of the outstanding debentures, before starting the redemption process
Answer
D. Statement i alone is incorrect
3
Which of the following statements are TRUE with respect to the preparation of Final Accounts of Companies ? i. Shareholders fund consists of the share capital, reserves and surplus and the money received against the share warrants ii. Schedule II of the Companies Act 2013 provides the format of Balance Sheet and SOPL iii. Events after the reporting period refers to the signiļ¬cant events occurred in the business from the date of reporting period to the date of approval of ļ¬nancial statements by the Board of Directors
Answer
B. Statements i and iii are true
4
Which of the following is FALSE with respect to the accounting for amalgamation of companies ? i. Transferee company means the company which is amalgamated in to another company ii. Pooling interest method is used when there is amalgamation in the nature of merger iii. Under the Net Payment method of calculating purchase consideration, the Net Assets will be treated as purchase consideration
Answer
C. Statements i and iii are false
5
Which of the following statements are CORRECT with regard to the accounting for the internal reconstruction of companies ? i. Internal reconstruction will lead to the capital reduction ii. Capital reduction a/c will be credited with amount of capital reduced, amount sacriļ¬ced by the creditors and appreciation in the value of assets iii. Balance in the Capital Reduction a/c, after writing oļ¬ of the ļ¬ctitious assets, accumulated losses, decrease in the value of assets and settlement of liability, if any, shall be transferred to the Capital Reserve
Answer
D. Statements i, ii and iii are correct
6
Which of the following statements are TRUE with regard to the preparation of cash ļ¬ow statement under direct method ? i. Net Cash from operation will be computed after deducting tax from the cash from operation ii. Payment of dividend to shareholders will be taken as an item in the Investing Activity iii. Dividend income received will be taken as an item of Financing Activities
Answer
A. Statement i alone is true
7
Which of the following statements are FALSE with regard to the preparation of cash ļ¬ow statement under indirect method ? i. Operating Proļ¬t before Working Capital Changes will be calculated by adding depreciation with the net proļ¬t ii. Increase in Current Assets should be added to the operating proļ¬t for calculating the cash from operation iii. Decrease in Current Liabilities should be deducted from operating proļ¬t to get the cash from operation
Answer
C. Statements ii and iii are false
8
Identify the WRONG statements from the following in connection with the Ratio Analysis. i. Activity Ratios are also called as Eļ¬ciency Ratios ii. Quick ratio is also called as Acid Test Ratio iii. Inventory turnover ratio is calculated by dividing the Sales with the Average Inventory
Answer
A. Statement iii alone is wrong
9
Identify the INCORRECT statements from the following with respect to the ratio analysis. i. Quick assets = (Current Assets-Closing Stock-Prepaid Expenses) ii. Debt-Equity Ratio = Shareholders Funds/Total Debt iii. Ideal Current Ratio is 1:1
Answer
B. Statements ii and iii are incorrect
10
Identify the FALSE statements from the following. i. Buyback of partly paid up shares are possible ii. Common Size Statements are used for inter-ļ¬rm comparison iii. Trend percentage is calculated on year on year basis by comparing the ļ¬gures of two consecutive years
Answer
D. Statements i, ii and iii are false
11
Julius Grodinsky is associated with
Answer
D. Industry life cycle
12
The growth in book value per share shows the
Answer
C. Growth in reserves
13
GDP is a logical factor to analyse the economy in picking up a stock because it indicates
Answer
B. Status of the economy
14
Markowitz approach has roots in
Answer
C. Analysing the risk and return related to stock
15
Which of the following statement is wrong with regard to Beta ?
Answer
B. The larger the Beta, the less volatile the security
16
Order the following statements into SWOT of a pharmaceutical industry i. Proposal to bring move drugs under drug price control ii. Proposal to establish various pharma SEZs across the country iii. Presence of large number of players and a fragmented industry iv. Large population, increasing health care expenditure
Answer
A. iv, iii, ii, i
17
The bond yield remains constant over its life and the discount on premium amount will decrease
Answer
C. At an increasing rate as its life gets shorter
18
Yield to maturity is the single factor that makes
Answer
C. Present value of the future cash ļ¬ows of the bond equal to the current price of the bond
19
Match the following : i. High leverage A. Market risk ii Decline in bank rate B. Purchasing power risk iii. Inļ¬ation C. Finance risk iv. Kargil war D. Interest rate risk
Answer
B. i-C ii-D iii-B iv-A
20
The bargaining power of the supplier is high when
Answer
D. All
21
'Place' in Marketing mix refers to
Answer
C. Making the product available to customer at convenient and accessible places
22
The marketing strategy used by companies with limited resources to serve only one or a few speciļ¬c segments is known as
Answer
B. Niche Marketing
23
The type of buying behaviour where consumers are highly involved in purchase but sees little diļ¬erence between brands is known as
Answer
A. Dissonance-reducing Buying Behaviour
24
'Reverse Logistic' refers to
Answer
D. Managing the return, reuse, and disposal of products
25
The type of sampling in which the population is divided into diļ¬erent homogeneous groups and random samples are selected from each group is known as
Answer
B. Stratiļ¬ed Sampling
26
Which of the following is not a perquisite ?
Answer
D. Interest on savings account
27
Which of the following deductions is allowed from salary income ?
Answer
C. Professional tax
28
Which of the following is not a deduction allowed from income from house property ?
Answer
C. Insurance premium on the property
29
Which of the following is not a general deduction allowed in computing business income ?
Answer
C. Dividend paid to shareholders
30
What is the treatment of depreciation in computing business income ?
Answer
A. It is fully deductible
31
What is the concept of 'grossing up' of interest income ?
Answer
A. Adding back the tax deducted at source to the interest income
32
A salaried individual claims a deduction under Section 80C for investment in PPF and ELSS. Additionally, he claims a deduction under Section 80CCD (1B) for additional contribution to NPS. Which of the following statements is correct ?
Answer
B. The deduction under Section 80CCD (1B) is over and above the limit of Rs. 1.5 lakhs under Section 80C
33
A taxpayer sells a long-term capital asset and incurs a capital loss. How can he utilize this loss ?
Answer
C. It can be carried forward and set oļ¬ against capital gains in the subsequent eight assessment years
34
What is the primary objective of transfer pricing regulations ?
Answer
A. To ensure that transactions between related parties are at arm's length
35
Statement 1 : The Finance Act is an annual legislation that introduces amendments to the Income Tax Act. Statement 2 : The Finance Act speciļ¬es the rates of income tax for the upcoming ļ¬nancial year.
Answer
C. Both Statement 1 and Statement 2 are correct
36
Statement 1 : Perquisites are beneļ¬ts received by an employee in addition to salary. Statement 2 : Perquisites are fully taxable as salary income.
Answer
C. Both Statement 1 and Statement 2 are correct
37
Statement 1 : Salary paid to employees is deductible in computing business income. Statement 2 : Dividend paid to shareholders is deductible in computing business income.
Answer
A. Only Statement 1 is correct
38
Statement 1 : TDS is deducted at the time of making certain payments, such as salary, rent and professional fees. Statement 2 : TCS is deducted at the time of making certain receipts, such as sale of goods or services.
Answer
C. Both Statement 1 and Statement 2 are correct
39
A taxpayer claims a deduction under Section 80G for a donation made to a charitable institution. What conditions must be fulļ¬lled for the donation to be eligible for deduction ?
Answer
D. All of the above
40
What is bond washing ?
Answer
A. A tax avoidance technique involving the sale and repurchase of bonds
41
Which tax is levied on an interstate supply of Goods ?
Answer
C. IGST
42
The rate of GST is recommended by
Answer
D. The GST Council
43
In GST Act, Zero-rated Supply means
Answer
D. Both 2 and 3
44
The validity period of an E-way bill for a distance more than 1000 km is
Answer
A. 15 days from the date of generation
45
In GST, "a supply made by a taxable person to a recipient comprising two or more supplies of goods or services or any combination thereof which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply" is called
Answer
B. Composite supply
46
For normal tax payers, the registration certiļ¬cate issued under GST Act is valid for a period of
Answer
D. Valid till it is cancelled
47
In GST, ISD means
Answer
B. Input Service Distributor
48
What is the rate of tax applicable to a registered person being a manufacturer opting tax under composite scheme under GST ?
Answer
A. 2%
49
What is 'SAC' stands for in GST Act ?
Answer
B. Service Accounting Code
50
What is the maximum time limit to claim the input tax credit under GST ?
Answer
C. Earliest of both 1 and 2
51
What does "stare decisis" mean ?
Answer
B. To follow precedent
52
Assume a company is formed with an unlimited share capital. what implications arise ?
Answer
B. Unlimited liability for members, potential ļ¬nancial risks
53
What is the role of the Chairman at a shareholders' meeting ?
Answer
D. All of the above
54
Which among the following is true with the contract of agency ?
Answer
B. Its only when a person acts as a representative of the other in the creation, modiļ¬cation and termination of contractual obligations between that order and third persons that he is an agent
55
Which among the following are right statements ? i. An indemnity is for reimbursement of a loss, while a guarantee is for the security of the creditor. ii. In a contract of indemnity the liability of the indemniļ¬er is secondary and arises when the contingent event occurs. But in contract of guarantee the liability of surety is primary and arises when the principal debtor defaults. iii. The indemniļ¬er after performing his part of the promise has no rights against the third party and he can sue the third party only if there is an assignment in his favour. Whereas in a contract of guarantee the surety steps in to the shoes of the creditor on discharge of his liability and may sue the principal debtor. iv. In a contract of indemnity, the liability of the indemniļ¬er is primary and arise when the contingent even occurs. In case of contract of guarantee the liability of the surety is secondary and arises when the principal debtor defaults.
Answer
C. i, iii and iv are right
56
What is the signiļ¬cance of intention to create legal relations ?
Answer
B. To create a contract enforceable by law
57
Assume a bill of exchange is negotiated before maturity. What consequences occur ?
Answer
D. Valid negotiation
58
Statement I : A company secretary is responsible for compliance with regulatory requirements. Statement II : A company secretary need not maintain professional competence. Identify the correct statement(s)
Answer
A. Only statement I is correct
59
What is the role of a company secretary in corporate social responsibility ?
Answer
D. All of the above
60
What is the signiļ¬cance of intention to create legal relations in a contract of sale ?
Answer
B. Creates a contract enforceable by law
61
Assertion (A) : Proļ¬t maximization is considered to be the ultimate objective of ļ¬nancial management. Reason (R) : Proļ¬t maximization ignores the risk and time value of money, which are critical factors in decision-making.
Answer
D. (A) is false, but (R) is true
62
Match the techniques in Column A with their characteristics in Column B and choose the correct option :
Answer
A. 1-B, 2-D, 3-C, 4-A
63
Consider the following statements regarding the determinants of capital structure : 1. Firms with stable cash ļ¬ows can aļ¬ord to take on higher debt. 2. High levels of operating risk encourage ļ¬rms to rely more on equity ļ¬nancing. Which of the above statements is/are correct ?
Answer
C. Both 1 and 2
64
A company has the following information : ā¢ Net income : Rs. 2,50,000 ā¢ Interest : Rs. 50,000 ā¢ Tax : Rs. 40,000 ā¢ Depreciation : Rs. 30,000 ā¢ Amortization : Rs. 20,000 What is the EBITDA of the company ?
Answer
A. Rs. 3,90,000
65
A company has the following details : ā¢ Sales : Rs. 12,00,000 ā¢ Variable Costs : Rs. 8,00,000 ā¢ Fixed Costs : Rs. 2,00,000 ā¢ Interest : Rs. 1,00,000 What is the composite leverage ?
Answer
C. 4
66
Which of the following methods can be used to calculate the cost of equity ? 1. Dividend Discount Model 2. Capital Asset Pricing Model (CAPM) 3. Net Present Value Method 4. Gordon Growth Model
Answer
D. 1, 2 and 4 only
67
What does the Marginal Cost of Capital (MCC) represent ?
Answer
B. The cost of raising one additional unit of capital
68
Match the following :
Answer
A. A ā 4, B ā 3, C ā 1, D ā 2
69
The operating cycle of a company measures the time
Answer
B. Taken to convert raw materials into cash
70
A ļ¬rm has the following data : Inventory period : 45 days Receivables collection period : 30 days Payables deferral period : 20 days What is the cash conversion cycle ?
Answer
C. 55 days
71
Which among the following is the process of buying and selling securities within a short period of time ?
Answer
A. Day trading
72
The primary beneļ¬t of investing in a mutual fund is
Answer
C. To diversify the portfolio and reduce risk
73
Green Shoe Option is intended to
Answer
B. Stabilize the stock price
74
The basic diļ¬erence between IPO and FPO are
Answer
A. IPO is for new companies, FPO for existing companies
75
The application amount blocked not deducted from bank account is ensured by ASBA through
Answer
D. A debit mandate
76
ESOP is mainly focused to
Answer
B. Increase employee ownership and motivation
77
Which among the following is a type of Qualiļ¬ed Institutional Buyer (QIB) ?
Answer
D. Institutional investor
78
A Credit Default Swap (CDS) is a type of
Answer
B. Derivative that protects against credit risk
79
Which of the following statements are correct about a Structured Note ? I. A type of derivative that allows investors to bet on interest rates II. A type of derivative that allows investors to bet on currency exchange rates III. A type of debt instrument that has a ļ¬xed interest rate IV. A type debt instrument that has a ļ¬xed maturity date
Answer
A. Only I and II
80
Which among the following is a prerequisite to become a mutual fund distributor in India ?
Answer
D. All of the above
81
During a BCG Matrix analysis, a company's product is placed in the "Dog" quadrant. What is the BEST course of action for the company ?
Answer
B. Divest or liquidate the product to free up resources
82
Match the strategic frameworks with their primary purpose :
Answer
B. 1-a, 2-b, 3-d, 4-c
83
Match the following strategic types with their corresponding characteristics :
Answer
C. 1-d, 2-a, 3-b, 4-c
84
Statement (A) : In industries with high entry barriers, existing ļ¬rms tend to earn above-average proļ¬ts. Statement (B) : High entry barriers limit the threat of new entrants, protecting the market share of existing ļ¬rms.
Answer
C. Both Statements are True
85
Statement (A) : Blue Ocean strategies often render competitors irrelevant. Statement (B) : Blue Ocean Strategies focus on creating uncontested market spaces by introducing unique value propositions.
Answer
C. Both Statements are True
86
Statement (A) : PESTLE analysis helps ļ¬rms predict the impact of external factors on their strategy. Statement (B) : PESTLE evaluates internal capabilities and core competencies of the ļ¬rm.
Answer
A. Statement (A) - True, Statement (B) - False
87
Statement (A) : Strategic planning is less eļ¬ective in dynamic environments. Statements (B) : In dynamic environments, strategies often required frequent adjustments to remain relevant.
Answer
C. Both Statements are True
88
Statement (A) : Related diversiļ¬cation is generally more successful than unrelated diversiļ¬cation. Statement (B) : Related diversiļ¬cation leverages existing resources and capabilities to create synergy.
Answer
C. Both Statements are True
89
A company in the automobile industry plans to introduce electric vehicles. Based on Porter's Five Forces, which factor would most likely determine the success of this strategic shift ?
Answer
D. All of the above
90
Company X has identiļ¬ed that it lacks the technical known-how to implement a digital transformation. Which strategic option is most appropriate ?
Answer
B. Engage in strategic alliances with tech ļ¬rms
91
Which of the following statements are correct about National Income ? A. Total ļ¬ow of earnings of the factor owners, which they receive through the production of goods and services. B. National income is measured in the context of economic and non-economic activities. C. Exchange value of goods which are already produced or already existing are included in National income. D. Scope of national income measurement includes non-capital goods and services demanded by business ļ¬rms.
Answer
D. A and D
92
Fiscal deļ¬cit minus borrowings and other liabilities is equal to
Answer
C. Budget Deļ¬cit
93
In the long run, a ļ¬rm in monopolistic competition
Answer
B. Earns normal proļ¬ts only
94
The statement "National Income is aļ¬ected only by changes in output level" is true under which national income measurement base ?
Answer
B. Constant prices
95
Usually the demand for necessities is
Answer
D. Highly inelastic
96
Under which economic conditions does the RBI conduct open market sale of securities ?
Answer
A. Inļ¬ation
97
Which among the following countries is associated with NITI Aayog to develop E-Amrit Portal ?
Answer
C. U.K.
98
Which among the following needs to approve the resolution plan ļ¬rst ?
Answer
C. COC
99
On which basis the fast track corporate insolvency resolution process cannot be initiated in respect of speciļ¬ed corporate debtors ?
Answer
D. Share capital and networth
100
Which among the following sentences are true with regard to illiquid stock option segment of stock exchanges ? i. SEBI introduced III Settlement scheme for entities involved in the illiquid stock option segment. ii. Illiquid stock options are low-risk stocks and high traded volume. iii. Illiquid stock options are far away from their expiration dates.
Answer
A. i and iii
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