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Q1. Poultry farms comes under which industry?
- A) Extractive industries
- B) Genetic industries
- C) Manufacturing industries
- D) Construction industries
Answer: (B) Genetic industries
Genetic industries are such industries in which certain species of plants and animals are multiplied and reproduced.
Q2. A type of account relating to losses and incomes is:
- A) Personal
- B) Real
- C) Nominal
- D) Profit and loss
Answer: (C) Nominal
Nominal accounts in accounting are the temporary account such as the income statement accounts.
Q3. In VED analysis D stands for-
- A) Data of receipt of items
- B) Desirable item
- C) Deviation of stock
- D) Daily desired item
Answer: (B) Desirable item
VED analysis is vital, essential, and desirable analysis employed in inventory control.
Q4. alpha numeric codification is suitable for a -
- A) Large scale organisation
- B) Small scale organisation
- C) Medium scale organisation
- D) All of the above
Answer: (A) Large scale organisation
Alpha numeric codification is a coding system suitable for large scale organisation, e.g. Car Numbers.
Q5. Purchase indent is an -
- A) External document
- B) Internal document
- C) Legal document
- D) None of the above
Answer: (B) Internal document
Purchase indent is a document that is used by the company internally that authorize the purchasing of products and material needed by the company.
Q6. Economic order quantity (EOQ) aims at minimizing -
- A) Carrying cost
- B) Ordering cost
- C) Both of carrying cost and ordering cost
- D) Suppliers price
Answer: (C) Both of carrying cost and ordering cost
EOQ aims to minimize carrying cost and ordering cost.
Q7. Which of the method of advertisement is suitable for uneducated media?
- A) Magazines
- B) Audio visual
- C) News papers
- D) Any of the above
Answer: (B) Audio visual
Audiovisuals refers to work with both a sound and visual component. This method is suitable for uneducated peoples.
Q8. The business financial year in India ends on -
- A) March 31st
- B) December 31st
- C) July 31st
- D) March 31st and December 31st
Answer: (A) March 31st
A financial year in India generally ends on 31st march.
Q9. Patent, copyright, trademarks comes under which type of assets?
- A) Current assets
- B) Intangible assets
- C) Tangible assets
- D) Miscellaneous assets
Answer: (B) Intangible assets
Intangible assets are identifiable long term assets of the company having no physical existence.
Q10. Uniform part of a loan raised by a company is known as -
- A) Public deposit
- B) Equity shares
- C) Debentures
- D) Borrowed capital
Answer: (C) Debentures
Debentures is a document that either creates a debt or acknowledge it and it is debt without collateral.
Q11. Induction training is meant for -
- A) Existing employees
- B) New employees
- C) Both (a) and (b)
- D) None of the above
Answer: (B) New employees
Induction training is a type of training given as an initial preparation upon taking up a post (new employees)
Q12. Bank is an organisation which deals in -
- A) Deposits
- B) Loans
- C) Money
- D) All of the above
Answer: (D) All of the above
Bank is an organisation which deals different matters related to money like deposit, loan, interest, etc.
Q13. What is a pooled commission?
- A) Share of commission on total profit
- B) Equal share of commission on total sale
- C) Equal share of commission on annual total sale
- D) Straight salary plus bonus on sale
Answer: (B) Equal share of commission on total sale
Pooled commission is the equal share of commission on total sale .
Q14. Drug samples worth Rs. 5,000 were distributed to physicians. The amount should be debited to -
- A) Sales account
- B) Samples account
- C) Advertisement account
- D) None of the above
Answer: (C) Advertisement account
Advertising account executes work withing advertising or multiservices agencies acting as a link between clients and the agency.
Q15. Credit balance of a ledger account is denoted by -
- A) Excess of credit side over debit side
- B) Excess of debit side over credit side
- C) Equally of debit and credit
- D) Any of the above
Answer: (A) Excess of credit side over debit side
Excess of credit side over debit side is called credit balance.
Q16. The exchange of goods between foreign producers and foreign consumer comes under -
- A) Import and export trade
- B) Import trade
- C) Entrepot trade
- D) External trade
Answer: (C) Entrepot trade
Entrepot trade in which imported goods are re-exported with or without any additional processing or repackaging.
Q17. Indian contract act was passed in -
- A) 1992
- B) 1872
- C) 1972
- D) 1892
Answer: (B) 1872
The indian contract act was passed in 1872.
Q18. Scrap and surplus disposal helps to -
- A) Reduce investments
- B) Release surplus funds
- C) Make available funds
- D) All of the above
Answer: (D) All of the above
Disposal of scrap and surplus items helps in gaining funds, reducing investment, space sparing etc.
Q19. The Imprest system is used in relation to -
- A) Sales book
- B) Purchase book
- C) Petty cash book
- D) Journal
Answer: (C) Petty cash book
Imprest system is a form of financial accounting system. The most common imprest system is the petty cash system.
Q20. In fund flow system the term 'fund' means -
- A) Cash
- B) Current assets
- C) Current liabilities
- D) Current liabilities - current assets
Answer: (D) Current liabilities - current assets
Fund means current liabilities and current assets in fund flow statement.
Q21. A budget is a -
- A) Financial statement
- B) Quantitative statement
- C) A report only
- D) Any of the above
Answer: (B) Quantitative statement
A budget is a quantitative expression of a plan for defined period of time.
Q22. in the journal data is recorded on the basis of -
- A) Account
- B) Nature
- C) Year
- D) Transaction
Answer: (D) Transaction
the unit of classification of data within the journal is the transaction. In the journal the data is recorded on the basis of transaction.
Q23. A person who is interested to start a retail drug store must be -
- A) D.Pharmacy
- B) Registered Pharmacist
- C) Chemist
- D) Druggist
Answer: (B) Registered Pharmacist
Registered Pharmacist is licensed to start a retail drug store.
Q24. Which one is not the function of management?
- A) Planning
- B) Organising
- C) Crediting
- D) Staffing
Answer: (C) Crediting
Management includes planning, organising, staffing, leading and controlling an organisation to accomplish the goal.
Q25. Open tender means -
- A) Major tender
- B) Moderate tender
- C) Minor tender
- D) None of these
Answer: (A) Major tender
Open tender is also known as competitive tender, public tender and major tender.
Q26. The form of cheque for which we cannot get cash in hand is -
- A) Bearer cheque
- B) Order cheque
- C) Crossed cheque
- D) None of the above
Answer: (C) Crossed cheque
Crossed cheque is a cheque marked to specify an instruction about the way it is to be redeemed. One can not get cash in hand through a crossed cheque.
Q27. The maximum number of partners allowed in a general business -
Answer: (B) 20
Maximum 20 partners are allowed in a general business.
Q28. The perpetual inventory system includes-
- A) Bin card
- B) Stores ledger
- C) Continuous stock taking
- D) All of the above
Answer: (D) All of the above
Perpetual inventory is also known as continuous inventory, described system of inventory where information on inventory quality and availability is updated on a continuous basis as a function of doing business. A bin card and store ledger are common elements in a perpetual inventory system.
Q29. Commerce is a term involved in -
- A) Earning profit
- B) Buying and selling of goods
- C) Managing work
- D) Providing finance
Answer: (B) Buying and selling of goods
Commerce is a whole system of an economy that constitute an environment for business (buying and selling of goods).
Q30. Formula of debt equity ratio is -
- A) Net profit after tax
- B) Owners equity
- C) Total liabilities / shareholders equity
- D) Internal equity / external equity
Answer: (C) Total liabilities / shareholders equity
Debt equity ratio is used to measure relative claims of creditors and owners. It is Total liabilities by stockholders equity.
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