sample paper Accountant Jobs

sample paper Accountant Jobs
Practice test For BCOM Jobs
Objective Solved Questions For Accounts Recruitment
1. Inventory is valued at lower of the cost or net realizable value on account of the accounting principle of—
(A) Realization
(B) Consistency
(C) Conservatism
(D) None of the above
Ans. (A)

2. In the period of rising prices, LIFO method may result in—
(A) Lowering the profit
(B) Raising the profit
(C) Raising the tax liability
(D) None of the above
Ans. (B)

3. Given
Total assets turnover 4
Net Profits 10%
Total Assets Rs. 50000
Net profit will be—
(A) Rs. 15000
(B) Rs. 10000
(C) Rs. 25000
(D) Rs.20000
Ans. (D)

4. A company auditor addresses his audit report to
(A) Board of directors
(B) Members
(C) Managing director
(D) Company secretary
Ans. (B)

5. Bonus shares means shares issued to—
(A) Workers
(B) Existing equity shareholders
(C) Preferential shareholders in lieu of dividend
(D) Debenture holders in lieu of interest
Ans. (B)

6. Which of the following does not call for physical verification?
(A) Stock
(B) Plant
(C) Loose tools
(D) Goodwill
Ans. (D)

7. Cash from operations is equal to—
(A) Net profit + increase in current assets
(B) Net profit + decrease in current liabilities
(C) Profit from operation ± Adjustment of increase and decrease in current assets and liabilities
(D) Fund from operation ± Adjustment of increase and decrease in current assets and current liabilities
Ans. (C)

8. Average profit of a firm is Rs. 9000 Firm’s capital is Rs. 60000 and normal return on business is expected at 10%. The goodwill by capitalization method will be-
(A) Rs. 30000
(B) Rs. 20000
(C) Rs. 25000
(D) Rs. 40000
Ans. (A)

9. Which of the following is not a current liability?
(A) Bank overdraft
(B) Redeemable debentures
(C) Account payable
(D) Provision for bad debts
Ans. (B)

10. Amount of under writing commission payable on the issue of debentures is limited to—
(A) 2%
(B) 2.5%
(C) 3%
(D) 5%
Ans. (B)

11. Which of the following acid test ratio can be said to be satisfactory?
(A) 2: 1
(C) 1: 1
(B) 1: 2
(D) None of these
Ans. (C)

12. The two factor theory of motivation was propounded by—
(A) Peter Drucker
(B) Herzberg
(C) McGregor
(D) Maslow
Ans. (B)

13. Which of the following leadership styles is most commonly found now days?
(A) Autocratic
(B) Democratic
(C) Free rein
(D) Participative
Ans. (B)

14. Deciding in advance what is to be done in future is called—
(A) Management
(B) Coordination
(C) Planning
(D) Decision-making
Ans. (C)

15. The organisation structure where there is direct vertical relationship is called—
(A) Line organisation
(B) Chain organisation
(C) Command organisation
(D) All the above
Ans. (D)

16. When managers devote their attention only to those events where results are highly deviated from normal; ft is called—
(A) Management by objective
(B) Management by exception
(C) Management by crisis
(D) Management by choice
Ans. (B)

17. Under delegation of authority—
(A) Authority is given to subordinates
(B) Authority flows from the top to bottom
(C) Delegator of authority is not received of accountability
(D) All the above happens
Ans. (D)

18. The process of determining by observation and study and reporting pertinent information relating to the nature of specific job is called—
(A) Job specification
(B) Job evaluation
(C) Job analysis
(D) Job description
Ans. (C)

19. In case of a private company—
(A) There is restriction on the right to transfer of shares
(B) The number of members is restricted
(C) Invitation to public for the subscription of shares is prohibited
(D) All of the above
Ans. (D)

20. A person at anyone time can not be DIRECT of more than—
(A) 1 Company
(B) 7 Companies
(C) 15 Companies
(D) 20 Companies
Ans. (C)

21. Certificate of commencement of business is not required by a—
(A) Public company
(B) Any type of company
(C) Private company
(D) Private company subsidiary to a public company
Ans. (C)

22. Henry Fayol is known for—
(A) Scientific management
(B) Rationalization
(C) Industrial psychology
(D) Principles of managements
Ans. (D)

23. The principle of unity of command implies—
(A) Unity of thought and action
(B) Unity amongst subordinates
(C) Instructions from staff authority
(D) Instructions from line authority
Ans. (D)

24. A company has equity capital of Rs. 200000. Preference capital of Rs. 100000, 12%
debentures of Rs. 100000, long term loan of Rs. 200000 and short term loan of Rs. 100000. The capital gearing ratio will be—
(A) 1:1
(B) 0.5: 1
(C) 0.4: 1
(D) None of the above
Ans. (C)

25. In case of a company, total assets less outside liabilities is called—
(A) Net working capital
(B) Gross working capital
(C) Deferred liabilities
(D) Net worth
Ans. (D)

26. If opening sales is Rs. 10000 purchases Rs. 30000 direct expenses Rs. 4000 and closing stock Rs. 5000 the costs of goods is sold would be—
(A) Rs. 39000
(B) Rs. 40000
(C) Rs.41000
(D) Rs. 44000
Ans. (A)

27. Premium on issue balance sheet as—
(A) An asset
(B) A liability
(C) An expense
(D) A revenue
Ans. (B)

28. Which of the following is known as ‘backbone of auditing’?
(A) Verification of assets
(B) Internal check
(C) Vouching
(D) Internal audit
Ans. (C)

29. The data obtained from a newspaper are—
(A) Primary data
(B) Secondary data
(C) Both (A) and (B)
(D) None of these
Ans. (B)

30. Sale of long term investments indicates—
(A) A change in current assets
(B) Application of funds
(C) Increase in working capital
(D) Source of funds
Ans. (D)

31. Net working capital refers to—
(A) Current assets
(B) Current assets minus current liabilities
(C) Equity share capital minus fixed assets
(D) Retired earnings.
Ans. (B)

32. If sales Rs. 6000 gross profit is 1/3 on cost, purchases are R. 4900 and the closing stock is Rs. 900, the opening stock will be—
(A) Rs.400
(B) Rs.500
(C) Rs. 1100
(D) Rs. 2000
Ans. (B)

33. The primary objective of audit is—
(A) Detection and prevention of frauds
(B) Detection and prevention of errors
(C) Detection of frauds and errors
(D) To ensure the final accounts and statements exhibit true and fair position of business
Ans. (D)

34. ‘An auditor is a watch dog and not a blood hound’. This was observed in case of— (A) London oil storage company
(B) Kingston cotton Mills Limited
(C) London General Bank
(D) Delightful Cigarette Company Ltd.
Ans. (B)

35. If two or more sugar mills combine together, it is known—
(A) Horizontal combination
(B) Vertical combination
(C) Lateral combination
(D) None of the above
Ans. (A)

36. Surrender value is related to—
(A) Marine insurance
(B) General insurance
(C) Life insurance
(D) Fire insurance
Ans. (C)

37. Over capitalization refer to—
(A) Excess of capital
(B) Excess rate of dividend payment, on shares
(C) Over estimation of rate of capitalization
(D) Raising more capital than is warranted by its earning power
Ans. (D)

38. Motivation refers to—
(A) Coordinate the people
(B) Guide the working people
(C) Terrorize the people
(D) Inducing people to work willing by
Ans. (D)

39. Which of the following is not a barrier in communication—
(A) Fear and distrust
(B) Affection
(C) Perception
(D) Noise
Ans. (B)

40. “Management is an art of getting things done through and with formally organized group.” This definition has been by—
(A) Peter Drucker
(B) Henry Fayol
(C) Harod Koontz
(D) F. W. Taylor
Ans. (C)

41. Foreign exchange for import of goods is sanctioned by—
(A) Exim Bank
(B) Reserve Bank of India
(C) State Bank
(D) Ministry of commerce
Ans. (B)

42. The cost of a machine having a span of life of 5 years is Rs. 10000. It has a scrap value of Rs. 1000. The amount of depreciation in the first year under the sum of year’s digit method will be—
(A) Rs. 1600
(B) Rs. 1800
(C) Rs. 2000
(D) Rs. 3000
Ans. (D)

43. Given:
Gross profit Rs. 60000
Gross profit ratio: 20%
Debtor’s velocity 2 months
The amount of debtors will be—
(A) Rs. 30000
(B) Rs. 50000
(C) Rs. 120000
(D) Rs.200000
Ans. (B)

44. Premium on issue of shares can be used for—
(A) Issue of Bonus shares
(B) Payment of Dividends
(C) Payment of operating expenses
(D) Redemption of debentures
Ans. (A)

45. If current ratio is 25, quick ratio (1)5 and net working capital Rs. 15000. This value of
inventory will be—
(A) Rs. 10000
(B) Rs. 15000
(C) Rs. 37500
(D) Rs. 52500
Ans. (A)

46. claimed dividend is shown on the liability side of the balance sheet under the heading—
(A) Revenue and surplus
(B) Provisions
(C) Current liabilities
(D) Miscellaneous items
Ans. (C)

47. Accounting standards in India are prescribed by—
(A) Company Law Board
(B) Institute of charted accountants of India
(C) Institute of coat and works accountants of India
(D) Indian standard Board
Ans. (B)

48. Which of the following is not correct —
(A) Purchase + Opening stock—Cost of goods sold = Closing stock
(B) Opening stock + Purchases — Closing stock = Cost of goods sold
(C) Closing stock + Cost of goods sold — Purchases = Opening stock
(D) Cost of goods sold — Closing stock + Purchases = Opening stock
Ans. (D)

49. A company bought assets worth Rs. 360000 and in lieu issued debentures of Rs. 100 each at a discount of 10%. The number of debentures issued will be—
(A) 3000
(B) 3600
(C) 3960
(D) 400
Ans. (D)

50. A person got insured his goods worth Rs. 10000 for Rs. 8000 against fire. Loss by fire to him was Rs. 9000. He can claim—
(A) Rs. 8000
(B) Rs. 9000
(C) Rs. 10000
(D) Rs. 7200
Ans. (D)

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online accounting degree entrance exam preparation India

online accounting degree entrance exam preparation India

online accounting degree exam practice test

online bachelors degrees exam objective questions

So if you appearing for entrance exam for accounting degree,these are commerce questions to help you prepare online
Free online commerce test for Accounting degree entrance exams

1. The income from that house property is taxable under the head. Income from House property.

(A) The assessee has ownership on that

(B) The assessee uses that house for his business

(C) The assessee himself lives in that house

(D) The assessee has let out that house on rent for residence

Ans. (A)

2. Following is the deduction in respect of repair  under the head of income from house property—

(A) 25 % of Annual Value

(B) 30 % of Net Annual Value

(C) 1/5 of Annual Value

(D) 1/5 of Net Annual Value

Ans. (B)

3. Single entry system can not be maintained by—

(A) Sole proprietorship

(B) Partnership concerns

(C) Joint stock company

(D) All of these

Ans. (D)

4. Cash account will not be affected by—

(A) Cash paid to creditors

(B) Discount received

(C) Cash sales

(D) Cash received from debtors

Ans. (B)

5. Tax audit is compulsory in case of a person carrying on business whose gross receipt) turnover/sales and exceeds—

(A) Rs. 50 lakhs

(B) Rs. 40 lakhs

(C) Rs. l0 lakhs

(D) Rs. 25 lakhs

Ans. (B)

6. Current Ratio of a firm is 3:1 and working capital is Rs. 60000. What will be the amount of current Assets—

(A) Rs. 30000

(B) Rs90000

(C) Rs. 120000

(D) Rs. 180000

Ans. (B)

7. Mr. Rastogi of Meerut was declared insolvent. One of his liabilities related to one months rent due to his landlord. This liability will be treated as—

(A) Preferential Creditor

(B) Partly Secured Creditor

(C) Fully Secured Creditor

(D) Unsecured Creditor

Ans. (A)

8. When two or more companies liquidate to form a new company. It is called—

(A) Amalgamation

(B) Absorption

(C) Reconstruction

(D) Purchase of Business

Ans. (A)

9. A, B and C are partners in a firm. If D is to be admitted to the firm as a new partner—

(A) Old firm has to be dissolved

(B) Old partnership has to be dissolved

(C) Both the old firm and the old partnership have to be dissolved

(D) No need to dissolve either firm or the partnership

Ans. (D)

10. Remington sold one typewriter to Ramesh Chandra under installment purchase system on 1, January 1996, payment for which was to be made as under—

On 01.01.1996 -

On 31.12.1996 -

On 31.12.1997 -

On 31.12.1998 -

On 31.12.1999 -

Interest at 10% p.a. is included in each installment. The total interest charged amount

to-

(A) Rs.2100

(C) Rs. 1800

(B) Rs. 1950

(D) Rs. 1700

Ans. (B)

12. The liquidator of a company is entit1edio a remuneration of 2% on assets realized, and 3% on the amount distributed to unsecured creditors. The assets realized Rs. 100000 including cash balance of Rs. 3000. Amount available for distribution to unsecured creditors before paying liquidators remui4eration was Rs. 46350 liquidator’s remuneration will be—

(A) Rs.3100

(C) Rs. 3290

(B) Rs.3140

(D) Rs. 3350

Ans. (C)

13. EXIM Bank was established on—

(A) 1st Dec 1984

(B) 1st June 1985

(C) 1st Jan 1982

(D) 1st July 1980

Ans. (C)

14. For capital gain being long term capital gain, an assessee should retain the assets for a period of—

(A) 40 months

(B) 36 months

(C) More than 36 months

(D) Less than 36 months

Ans. (C)

15. The salary received by a member of parliament is—

(A) Exempt from Tax

(B) Taxable under the head of salary

(C) Taxable under the head of other sources

(D) Taxable under the lead of business

Ans. (C)

16. For the purpose of income tax it is necessary for agriculture income that—

(A) Land should be used for agricultural activities

(B) Land should be used for godown

(C) Land should be used for irrigation

(D) None of above

Ans. (A)

17. Depreciation is allowed on—

(A) Tangible Assets

(B) Current Assets

(C) Fixed Assets

(D) Intangible Assets

Ans. (C)

18. When shares are forfeited, the share capital account is debited by—

(A) Nominal value of forfeited shares

(B)Paid up amount of forfeited shares

(C) Called up amount on forfeited shares

(D) Forfeited amount of shares

Ans. (C)

19. The term ‘POIM’ for the four functions of management. Planning, organisation, integration and measuring was given by.—

(A) F.W. Taylor

(B) Harold Smiddy

(C) Tanon Brown

(D) Peter F. Drucker

Ans. (B)

20. The statutory meeting of a company is convened—

(A) Once in a year

(B) Once in the life time of the company

(C) Once in six months

(D) Once in three months

Ans. (B)

21. Secret reserves may be created by—

(A) Under-valuation of liabilities only

(B) Under-valuation of assets only

(C) Over-valuation of assets only

(D) Over-valuation of liabilities and under-valuation of assets

Ans. (D)

22. The current ratio of a firm is 2: 1. If it pays Rs. 5000 to it creditors, it will—

(A) Increase the current ratio

(B) Decrease the current ratio

(C) Increase working capital

(D) Neither increase nor decrease

Ans. (D)

3. e-commerce means—

(A) Economics Commerce

(B) Electronic Commerce

(C) Engineering Commerce

(D) Electrified Commerce

Ans. (B)

24. Which of the following is not a media of oral communication ?

(A) T.V. Transmission

(B) Interview

(C) Questionnaire

(D) None of above

Ans. (D)

25. Trade-tax is levied upon—

(A) Import of goods

(B) Export of goods

(C) Sale of goods

(D) Income of trader

Ans. (C)

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Sample test junior accountant

Sample test junior accountant
Model test papers for the post of Junior Accountant exam
Practice papers Recruitment of Junior Accounts Officers
1. A file which contains rules governing the organization under audit is known as:
(a) Current file
(b) Permanent file
(c) Routine file
(d) Precedence file
Ans. (b)

2. In so far as a company is concerned, which one of the following pairs is not correctly matched?
(a) Internal audit — Obligatory
(b) Statutory audit — Mandatory
(c) Continuous audit — Optional
(d) Management audit — Voluntary
Ans. (a)

3. Where the auditor places a high degree of reliance on an internal control procedure, the acceptable risk of over-reliance would be:
(a) Low
(c) Moderate
(b) High
(d) Nil
Ans. (c)

4. Management audit is ordered by the:
(a) Workers of a company
(b) Government
(c) Board of Directors
(d) Securities Exchange Board of India.
Ans. (c)

5. When an auditor detects material weaknesses in the internal checks and control system of the company under audit, he should report his findings as per:
(a) ICAI orders
(b) SEBI orders
(c) MAOCAR orders
(d) ICWAI orders
Ans. (c)

6. A company can invest money in another company only if it is so authorized by its
(a) Memorandum of Association
(b) Articles of Association
(c) Auditors
(d) Company Secretary
Ans. (a)
7. Match List-I with List-II and select the correct answer using the Code given below the Lists:
List-I List-II
(Type of Mutual Fund) (Features)
A. Open-ended fund 1. Maximizes short term return to investors
B. Income fund 2. Can sell unlimited number of units
C. Close-ended fund 3. The units are not redeemable at their NAV
D. Growth fund 4. Maximizes long-term return to investors
Codes:
A B C D
(a) 3 4 2 1
(b) 3 4 1 2
(c) 2 1 4 3
(d) 2 1 3 4
Ans. (d)

8. Which one of the following best supports the theory that the Stock Exchange is a secondary market?
In a Stock Exchange:
(a) securities are bought and sold by way of transfer
(b) an existing holder of securities can dispose of the holdings to another investor who intends to buy them
(c) no new investment is created
(d) securities are dealt in for dual purposes— investment and speculation
Ans. (d)

9. LIBOR refers to:
(a) liberalized system of foreign exchange transfer between Banks
(b) inter-bank lending rate for Euro-dollars at London
(c) lowest rate of interest at which banks in London lend Pound Sterling
(d) lowest rate of interest prescribed by the Reserve Bank of India
Ans. (b)

10. Financial disintermediation results in larger:
(a) access to financial institutions
(b) participation of foreign financial institutions
(c) free-based income
(d) securities-related income
Ans. (a)

11. Match List-I with List-II and select the correct answer using the Code given below the Lists:

List-I List-II
(Organization) (Associated with)
A. Joint stock company 1. Memorandum of Association (M/A)
B. Co-operative society 2. Special Act
C. Statutory corporation 3.Mutual contract
D. Partnership 4. Bye-laws
5. Shareholding
Codes:
A B C D
(a) 1 4 3 2
(b) 5 2 4 3
(c) 1 4 2 3
(d) 5 2 3 4
Ans. (c)

12. The basic flow of activities of a business firm follows a certain cyclical sequence. A business would like to have as many such cycles as possible during a given time period, say a year. What will be the sequential flow of some of these activities in the cycle?
1. Financing decision
2. Investment decision
3. Disposal or output
4. Acquisition of resources
Select the correct answer using the Code given below:
Code:
(a) 2, 1, 4, 3
(b) 4, 1, 2, 3
(c) 1, 3, 4, 2
(d) 2, 3, 1, 4
Ans. (a)

13. Which one of the following types of Companies deals with only its shareholders for their benefit?
(a) Private Limited Company
(b) Chit Fund Company
(c) Nidhi Company
(d) Banking Company
Ans. (b)

14. In addition of Consumer Forums which one of the following looks after the interests of consumers?
(a) High courts
(b) Company Law Board
(C) MRTP
(d) Bureau of Industrial Costs and Prices
Ans. (c)

15. Which one of the following is NOT an advantage of the incorporation of a company?
(a) Perpetual succession
(b) Limited liability of Members
(c) Capital contributions forming part. of the joint stock of the company
(d) Freedom to do any business
Ans. (d)

16. Economic oligarchy, fraudulent practices, bureaucratic management and difficulty in formation are the limitations of a:
(a) sole proprietary concern
(b) partnership firm
(c) joint stock company
(d) co-operative society
Ans. (c)

17. Which one of the following is not the distinctive feature of the co-operative form of business organization?
(a) Service before self
(b) Democratic management
(c) Corporate status
(d) One-share one-vote system
Ans. (d)

18. The liability of the Karta in a joint Hindu family is:
(a) limited to his interest in the joint Hindu family
(b) unlimited
(c) limited to the entire property of the family
(d) limited to the private properties of all the members
Ans. (b)

19. Those companies which can register themselves without the word “limited” under license granted by the Central Government are:
(a) Private Companies
(b) Charitable Companies
(c) Public Companies
(d) None of the above
Ans. (b)

20. A, B, C. D are partners sharing profits and losses in the ratio 3 : 3 : 2: 1. The partnership is dissolved and D becomes insolvent. C brings only his share of loss and shows his inability to contribute anything towards D’s deficiency. According to Garner vs. Murray rule, D’s deficiency in the total will be shared by:
(a) A and B in their capital ratio
(b) A, B and C in their profit sharing ratio
(c) A, B and C in their capital ratio
(d) A, B and C equally
Ans. (a)

21. Non-registration of a partnership does not affect:
(a) the right of a partner to sue the firm
(b) the right of the firm to sue third parties
(c) the right of the third party to proceed against the firm or its partners
(d) any of the above
Ans. (c)

22. If a minor chooses to continue as a partner on attaining the age of majority, he will be liable to the debts of the firm from the date of his:
(a) attaining majority
(b) admission to profits of the firm
(c) choosing to become a partner at a subsequent date
(d) guardian giving the option
Ans. (b)

23. Which one of the following is not a feature of Private
company as per Indian Companies Act?
(a) Limitation on the number of its members
(b) Restriction on the right to transfer its shares
(c) Ban on floating of debentures
(d) Prohibition of any invitation to the public
Ans. (c)

24. Combination of Printing and Dyeing Companies is a type of:
(a) vertical combination
(b) horizontal combination
(c) circular combination
(d) allied combination
Ans. (d)

25. According to the Companies Act, which one of-the following companies can commence allotment of shares even before the minimum subscription is subscribed or paid?
(a) Chartered Company
(b) Private Company
(c) Government company’
(d) Public Limited Company
Ans. (b)

26. Which one of the following documents is known as
Doctrine of constructive notice?
(a) The prospectus of the company
(b) The certificate of commencement of business
(c) The Memorandum and the Article of Association
(d) List of working directors
Ans. (c)

27. Consider the following statements regarding Indian industries
1. Industrial modernization has not come up even in a modest way.
2. A support system and a regulatory framework have been developed so as to encourage and direct the industrial houses to modernize their plants.
3. Considerable advances have been made in the fields of managerial and technological skills in the country.
4. No effort has so far been made towards attaining the goal of self-reliance in the manufacture of consumer items.
Of these statements:
(a) 1 and 2 are correct
(b) 2 and 3 are correct
(c) 3 and 4 are correct
(d) 1 and 4 are correct
Ans. (b)

28. Which one of the following is a joint stock company as per Companies Act, 1956?
(a) A charitable trust
(b) A partnership firm with fixed capital
(c) A society with fixed reserve fund
(d) None of the above
Ans. (d)

29. Steps to be taken in a selling system include:
1. Receipt of order
2. Processing order
3. Shipment of merchandise
4. Accounting for sale
The correct chronological sequence of these steps is:
(a) 1, 4, 3. 2
(b) 1, 4, 2, 3
(c) 1, 2, 4, 3
(d) 1, 2, 3, 4
Ans. (c)

30. Which one of the following is not a commercial risk?
(a) Insolvency of the buyer
(b) New restrictions placed on import-export trade
(c) Damage to goods in transit
(d) Change in the exchange rate
Ans. (d)

31. Match List-I with List-II and select the correct answer using the Code given below the list:
List-I List-II
(Some usages in trade & marine insurance) (Practical implication or name)
A. Ex- works contract 1. C.I.F.
B. Freight paid by Importer 2. Method of settlement of disputes
C. Force majeure 3. Minimum obligation for the exporter
D. Arbitration 4. Condition to be included in the contract if
natural calamities are to be covered
5. F O B contract
Code:
A B C D
(a) 3 5 2 1
(b) 1 2 3 4
(c) 1 2 4 3
(d) 3 5 4 2
Ans. (d)

32. The average clause in a fire policy states that the insured can get back:
(a) only that portion of the actual loss suffered as the sum insured bears to total value
(b) the entire amount of the total loss suffered
(c) the entire amount of partial loss suffered
(d) a fixed percentage of loss suffered
Ans. (a)

33. Match List-I with List-II and select the correct answer using the Code given below the Lists:
List-I List-II
A. Span of control 1. The superior helps, through continuous guidance, the
subordinate to reach his goals
B. M.B.O. 2. Numerical limit of subordinates to be supervised by
an executive
C. M.B.E. 3. Subordinate remains accountable to his superior and
the superior has the authority to demand
accountability from his subordinate
D. Delegation of authority 4. The management will concern itself of and confine
its activities to those areas and operations where the
actual performance is short of the target

Code:
A B C D
(a) 1 2 3 4
(b) 1 2 4 3
(c) 2 1 3 4
(d) 2 1 4 3
Ans. (d)

34. According to Peter Principle, managers tend to:
(a) work late as they go higher up the hierarchy
(b) work even beyond their retirement age
(c) get promoted to the level of their incompetence
(d) loss their competence with successive promotions
Ans. (c)

35. Which of the following advantages could be derived from the use of Franking machine?
t. It saves time because of its speed
2. Valuable facts and figures can be obtained
3. It is very convenient to use
4. It ensures much greater accuracy
Select the correct answer using the Cod. given
below:
Code:
(a) 1 and 4
(b) 1 and 3
(c) l and 2
(d) 2 and 3
Ans. (b)

36. Consider the given structure of an organization:

Which one of the following is represented by the same?
(a) Druckers’ effective structure
(b) Span of effective control
(c) Functional form of organization
(d) General Manager’s view of the organization
Ans. (c)

37. According to Graicuna’s theory, total, number of relations among superiors and subordinates can be found by the formula:

Ans. (d)

38. Which of the following pairs are correctly matched?
1. Henri Fayol — Administration Industrial et General
2. F.W. Taylor — The Functions of the Executive
3. Douglas McGregor — The Human side of Enterprise
4. Peter Drucker — Management: Tasks, Responsibilities and Practices
Select the correct answer using the Code given below:
Code:
(a) 1, 2, 3 and 4
(b) 3 and 4
(c) 2 and 4
(d) 1 and 3
Ans. (a)

39. Match List-I and List-II and select the correct answer using the Code given below the Lists:
List-I List-II
A. Line authority 1. Some people in an organization are vested with primary
source of authority
B. Staff authority 2. Some people in an organization have legitimate right to exert
influence on others

C. Functional authority 3. Some people in an organization lack independent, formal
authority
D. Formal authority 4. Some people have right to control activities of other
departments as they relate to specific staff
Code:
A B C D
(a) 1 2 3 4
(b) 2 4 3 1
(c) 1 3 4 2
(d) 2 3 4 1
Ans. (c)

40. Match List-I with List-II and select the correct answer using the Code given below the Lists:
List-I (Names) List-II (Model)
A. Kurt Lewin 1. Action Research process model
B. H.J. Leavitt 2. Sequential profess model
C. Larry Greiner 3. System model
D. Floyd C. Mann 4. Three-step model
Codes:
A B C D
(a) 1 2 3 4
(b) 1 4 3 2
(c) 3 2 1 4
(d) 4 3 2 1
Ans. (c)

41. Understanding control does Not signify understanding:
(a) how one controls
(b) what is meant by control
(c) who controls
(d) what is controlled
Ans. (c)

42. Consider the following statements:
The social responsibility of business is to:
1. do a business as per the public policy
2. obey all the rules and regulations of the Government
3. make payment of the taxes imposed by the Government
4. provide not necessarily adequate but good quality of goods
Of these statements:
(a) 2 and 3 are correct
(b) 1 and 4 are correct
(c) 1, 2 and 3 are correct
(d) 1, 2, 3 and 4 are correct
Ans. (d)

43. In the process of controlling office management, certain steps are normally taken. These include:
1. analyzing the actual performance
2. finding out the reasons for discrepancies.
3. evaluating the performance
4. establishing the standards of work performance
The correct sequence in which these steps are usually taken is:
(a) 4, 1, 2, 3
(b) 1, 4, 2, 3
(c) 1, 4, 3, 2
(d) 4, 1, 3, 2
Ans. (d)

44. Which of the following constitute manpower planning?
1. Determining human resource requirements both quantitatively and qualitatively
2. Finding the source of talented individuals
3. Planning for the human resource, needs of an organization
4. Reaching out to the right source for procuring the right people
Select the correct answer using the Code given below:
Code:
(a) 1, 2 and (c) l and 3
(b) 2 and 3
(d) 1, 2, 3 and 4
Ans. (a)

45. Organization and methods aim at simplification of office procedures through:
(a) elimination of all unnecessary work, minimizing the number of forms and direct communication
(b) elaboration of specific work processes for better implementation
(c) discarding all the records and treating each work merit
(d) allowing existing procedures to continue without adding any new procedures or amendments.
Ans. (a)

46. Consider the following statements:
1. MBO is a control technique in which managers devote time only on the areas of deviation.
2. MBO integrates the individual with the organization, and the organization with the environment.
3. In MBO the control over people is shifted to control over operations.
4. The MBO principle must be accompanied in practice by the principle of critical-point control.
Of these statements:
(a) 1 and 2 are correct
(b) 2 and 3 are correct
(c) 3 and 4 are correct
(d) 1 and 4 are correct
Ans. (c)

47. Which of the following advantages accrue from vertical filing?
1. The system has universal application, as all types of papers and documents can be field
2. It provides ample scope for the expansion of the filling facility
3. It is comparatively a heap method
4. The papers are kept in a chronological order
Select the correct answer using the Code given below.
Code:
(a) 1 and 3
(b) 1 and 2
(c) 2, 3 and 4
(d) 1, 2, 3 and 4
Ans. (b)

48. Consider the following statements:
A strategic management piece comprises:
1. goal settling, strategy formulation, administration and strategic control
2. setting courses of action attaining objective, process of seeking key areas and strategy formulation
3. integrating the organization with culture
4. strategic planning and acting on these plans
Of these statements:
(a) 1, 2 and 3 are correct
(b) 2, 3 and 4 are correct
(c) 1, 2 and 4 are correct
(d) 1, 3 and 4 are correct.
Ans. (c)

49. Which one of the following may not necessarily be an advantage of co-ordination?
(a) Effective supervision
(b) Unity of direction
(c) Creative force
(d) Summarization of all management functions
Ans. (c)

50.A qualified company Secretary is needed to be appointed as Secretary to a company only on the basis of the:
(a) business of the company
(b) paid up capital of the company
(c) location of the company
(d) listing of the company on any stock exchange
Ans. (b)

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