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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