CLASS 12 | HCC

HUMMING BIRD COMMERCE COMPETENCY (HCC)

HCC is an International Level Commerce Olympiad. The Olympiad is based

on Multiple Choice Question Pattern which helps the Children to be more
precise & careful while attempting the Questions.

Pattern: Multiple Choice Questions (MCQ’s)

Subjects: Accounts, Business Studies & Economics
Syllabus: As per School Syllabus
Centre of Examination: The School itself will be the Centre of Examination

CLASS 12
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Revised Edition: 2019-20

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matter or the errors present inside. The Feedback can be sent to
info@olympiads.co.in for any improvement/ corrections.

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TIPS TO CRACK THE OLYMPIAD

The Olympiads are often thought to be the Examination with

Difficult Questions, however, the Questions are NOT Difficult.
These Questions are just Tricky & based on the combination of your
Current Syllabus & Your Basic Knowledge. Below mentioned are
the points may help you in achieving a Strong Position in the
Olympiad:

a. Back to Basics: The Maximum Olympiad Questions are based

on your Class Syllabus only. Don’t just Cram the Concepts but
learn the basic understanding behind it.
b. Know your Examiner: The Question Paper is prepared by the
Author/Examiner on the Topics which are either Important or
the Topics which are left out by the Students as they are so
called Boring or Difficult. If you know what your Examiner is
going to ask, you can prepare & score accordingly.
c. Syllabus & Topics: The Syllabus is mentioned inside this
Preparatory Booklet. Read the Syllabus & try to cover the
maximum Topics.
d. One Month before the Examination: Sit with your Parents
& Teachers more often & highlight the most important Topics.
Read & Understand the topics & practice the important
questions
e. One Week before the Examination: Don’t start a new topic.
Practice all important Questions & Revise all the Topics.
f. On the Day of Olympiad: Leave every kind of Study Pressure.
The One Hour Olympiad is just a Mental Exercise Game which
cannot be played with Pressure in your Mind.

May you get All the Success. Best of Luck.

Regards, TEAM (HUMMING BIRD OLYMPIADS)

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QUESTION PAPER - 1

Questions: 40 Time: 40 Minutes

ECONOMICS

1. Which theory is generally included under micro economics?

(a) Price theory (b) Income theory

(c) Employment theory (d) None of the above

2. When does total utility starts falling?

(a) When MU becomes zero (b) When MU becomes negative

(c) When MU rises (d)None of these

3. At which rate TU increases when MU is diminishing?

(a) At increasing rate (b) At constant rate

(c) At diminishing rate (d) None of these

4. Price effect is the sum of

(a) Price effect + Cross price effect (b) Income effect + Cross price effect

(c) Substitution effect + Income effect (d) None of these

5. For inferior commodities the income effect is:

(a) Zero (b) Inverse (c) Infinite (d) Direct

6. Complete the following table:

UNITS SOLD TR AR MR

1 20 - -

2 - 18 -

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3 - - 12

4 56 - -

(a) TR-20,36,48,56; AR-20,18,16,14; MR-20,16,12,8

(b) TR-56,48,36,20; AR-14,16,18,20; MR-8,12,16,20
(c) TR-0,20,48,56; AR-0,18,16,14; MR-0,16,12,8
(d) None of these

7. Which of the following cause decrease in supply?

(a) Reduction in factor prices

(b) Decrease in number of firms

(c) Increase in price of a competing product

(d) All of these

8. The aggregate demand curve shows a _________ relationship

between _________ and aggregate output______

(a) Direct, The price level, Demanded

(b) Inverse, The price level, supplied

(c) Inverse, The price level, Demanded

(d) Direct, The interest rate, Demanded

9. What is the value of personal disposable income when

corporation tax 3 crore, direct tax paid by household 4 crore.
Private income 218 crore,miscellaneous reciepts of govt 1
crore,Saving of private corporate sector netof retained 1 crore

(a) 1 crore (b) 218 crore (c) 209 crore (d) None of these

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10. A type of unemployment in which workers are in between jobs

or are searching for new and better jobs is called__________
unemployment

(a) Frictional (b) Cyclical (c) Structural (d) Turnover

11. Break even point is a point where

(a) Investment=Saving (b) Consumption=Investment

(c) AD=AS (d) Consumption=Income

12. Which of the following is not the function of money?

(a) Medium of exchange (b) Store of value

(c) Allocation of resources (d) Money as a unit of measures

13. Which one of the following is not the form of tax revenue?

(a) Income tax (b) Sales tax

(c) License fee (d) Excise duty

ACCOUNTANCY

1. In the absence of an agreement to the contrary the partner share

(a) Entitled for 6% interest on their capital, only when there are profits

(b) Entitled for 9% interest on their capital, only when there are profits

(c) Entitled for interest on capital at the bank rate, only when there are
profits

(d) Not entitled for any interest on their capitals

2. Goodwill is to be valued at three years purchase for four year

average profit. The profits for last four year were 2008-12000,
2009-18000, 2010-16000, 2011-14000 than the goodwill will be

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(a) 12000 (b) 16000 (c) 45000 (d) 50,000

3. A and B sharing profits and losses in the ratio of 2/3rd and 1/3rd
admit C as a partner giving him 1/4th share. The new profit-sharing
ratio will be

(a) a-1/2 b-1/4 c-1/4 (b) a-1/3 b-1/3 c-1/4

(c) a-3/8 b-3/8 c-2/8 (d) None of these

4. At the time of dissolution of the firm the loan from partner's

relative are

(a) Transferred to realization account

(b) Not transferred to realization account

(c) Transferred to partner's capital account

(d) Transferred to balance sheet

5. Which section requires a company to transfer out of profit

adequate amount to DRR before the redemption of debentures

(a) Section 118B (b) Section 117C

(c) Section 204A (d) Section 119C

6. In the absence of an agreement to the contrary partners share

profit and losses in the

(a) Ratio of their capital in the beginning of the year

(b) Ratio of their capital at the end of the year

(c) Ratio of average capital

(d) Equal ratio

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7. Unrecorded liabilities when paid are debited to

(a) Realization account (b) Partners capital account

(c) Both A and B (d) None of them

8. Which of the following statement is true?

(a) The losses from the sale of capital assets need not be deducted from the
revenue to ascertain net income

(b) Going concern concept requires that always non-monetary assets should
be valued and recorded at market value

(c) According to consistency concept the result of one accounting period of a

business cannot be compared with

(d) In terms of conservatism concept all probable losses must be considered

in computation of income

9. The discount allowed on re-issue of forfeited share is debited to

(a) Discount on re-issue of shares a/c (b) Profit and loss a/c

(c) Share premium a/c (d) Forfeited share a/c

10. In calculating earning per share, the net profit is divided by

which of the following?

(a) Number of ordinary shares (b) Number of preference shares

(c) Paid up capital (d) Authorized capital

11. X and Y are partners sharing profits in the ratio of 2:1 they admit
Z into the partnership for 1/4th share in profits for which he brings in
Rs 20,000 as his share of capital. Hence the adjusted capital of X
and Y will be

(a) Rs 40,000 and Rs 20,000 respectively

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(b) Rs 32,000 and Rs 16,000 respectively

(c) Rs 60,000 and Rs 30,000 respectively

(d) Rs 16,000 and Rs 30,000 respectively

12. According to SEBI how much amount of a debenture issue must

be transferred to DRR before redemption

(a) 50% (b) Full amount

(c) 15% (d) 80%

13. At the time of retirement of a partner if goodwill appears in the

balance sheet it must be written off the capital accounts of all the
partners are debited in

(a) The old profit sharing ratio

(b) The new profit sharing ratio

(c) The capital ratio

(d) All of the above

BUSINESS STUDIES

1. Management is the art of getting things done through others and

with formally organized groups is given by

(a) F.W Taylor (b) George R. Terry

(c) Peterson (d) All of these

2. Your grandfather has retired from an organization in which is

responsible for implementing the plans developed by the top
management. At which level of management was he working

(a) Top level management (b) Middle level management

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(c) Lower level management (d) None of these

3. The production manager of bharat ltd. instruct a salesman to go

slow in selling the product Whereas the marketing manager is
insisting on fast selling to achieve the target

(a) Principle of equity (b) Principle of unity of command

(c) Principle of discipline (d) Principle of scalar chain

4. Management should find 'one best way' to perform a task. Which

technique of scientific management is defined in this sentence?

(a) Time study (b) Motion study

(c) Fatique study (d) Method study

5. In recent times the government has increased the prices of diesel

and LPG. What value is being overlooked here?

(a) Fall in standard of living

(b) Development of national values

(c) Both A and B

(d) None of these

6. Grouping of activities on the basis of product lines is a part of

(a) Delegated organization (b) Divisional organization

(c) Functional organization (d) Autonomous organization

7. Name the method of training in which trainees learn on the

equipments they will be using

(a) Induction training (b) Vestibule training

(c) Apprenticeship programme (d) None of these

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8. Food,clothing,shelter are the example of which type of needs?

(a) Safety needs (b) Physiological needs

(c) Basic needs (d) Self esteem needs

9. In an organization the employees are being paid fair

wages/remuneration and productivity-based bonus. Which values
are highlighted here?

(a) Increase in morale (b) Good working condition

(c) Development of initiative power (d) None of these

10. Which decision is taken in financial management which affects

the liquidity as well as the profitability of business?

(a) Investment decision (b) Long term investment decision

(c) Short-term investment decision (d) Financial decision

11. Other things remaining the same an increase in the tax rate on
corporate profits will:

(a) Make the debt relatively cheaper

(b) Make the debt relatively dearer

(c) Have no impact on the cost of debt

(d) We can’t say

12. A wholesaler of onion comes to know that due to less production

the price of onion will increase heavily. He stored the onion and
during rising prices earns heavy profits by selling the stored onion.
From the earned profits he provides some money for social activities
also which value reflects here

(a) Promotion hoarding and black marketing of goods

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(b) By participating in social works he still fulfils his social objectives

(c) Both A and B (d) None of these

13)The principles of management are significant because of

(a) Increase in efficiency (b) Initiative

(c) Optimum utilization of resources

(d) Adaptation to changing technology

14. Which of the following is an example of social environment?

(a) Money supply in the economy

(b) Consumer protection act

(c) The constitution of the country

(d) Composition of family

ANSWERS FOR QUESTION PAPER - 1

ECO.1 a ECO.11 a ACT.8 d BST.5 a
ECO.2 b ECO.12 c ACT.9 a BST.6 b
ECO.3 c ECO.13 c ACT.10 a BST.7 b
ECO.4 c ACT.1 d ACT.11 a BST.8 c
ECO.5 b ACT.2 c ACT.12 b BST.9 a
ECO.6 a ACT.3 a ACT.13 a BST.10 a
ECO.7 a ACT.4 b BST.1 d BST.11 a
ECO.8 c ACT.5 b BST.2 a BST.12 c
ECO.9 b ACT.6 d BST.3 b BST.13 c
ECO.10 a ACT.7 a BST.4 d BST.14 d

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QUESTION PAPER - 2

Questions: 40 Time: 40 Minutes

1. Under law of demand

(a) Price of commodity is an Independent Variable

(b) Quantity demanded is a dependent variable

(c) Inverse relationship is found between price and quantity demanded

(d) All of the above

2. Factor which do not leads to shift in PPC

(a) Increase in resources

(b) Decrease in resources

(c) Change in technology

(d) All of the above

3. Marginal utility of money refers to

(a) Worth of rupee (b) Rupee

(c) Total utility (d) All of them

4. What will be the Income effect when Price effect is 75 and

Substitution effect is 35

(a) 35 (b) 30 (c) 40 (d) None of the above

5. Marginal utility is equals to average utility at the time when

average utility is

(a) Increasing (b) Maximum (c) Falling (d) Minimum

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6. The market price of a good changes from Rs 5 to Rs 20 as a result

the quantity supplied by the firm increases by 15 units The price
elasticity of supply is 0.5 What will be the initial and final output
levels of the firm

(a) 5 units, 20 units (b) 10 units, 25 units

(c) 15 units, 20 units (d) 10 units, 5 units

7. The aggregate demand (AE) curve would shift down if

(a) Government spending were increased

(b) Taxes were increased

(c) The money supply were increased

(d) The interest rate decreased

8. Diminishing returns to a factor impels that with capital fixed

(a) As labor increases, labour productivity eventually decreases

(b) As output increases, labour increases

(c) As labour increases, output decreases

(d) As labour increases output always increases

9. Which system is known in which goods are exchange for goods?

(a) Exchange system (b) Barter system

(c) Double coincidence of wants (d) None of these

10. Consider three consumer goods 100 of good A, 100 of Good B

and 100 of good. In the base year Good A sold at a price of $1, good
B sold at a price of $1 good C sold at the price of $1. In the current
year Good A sold at the price of $3, good B sold at a price of $5 and
good c sold at the price of $10. The CPI for the current year is
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(a) 100 (b) 300 (c) 500 (d) 600

11. Which is the slope of autonomous investment

(a) Slope>0 (b) Slope<0 (c) 1>slope>0 (d) Slope=0

12. Pick out the odd one

(a) Bank rate (b) CRR

(c) Open market operation (d) Moral suasion

13. Which of the following is the difference between narrow money

and broad money?

(a) DD (b) TD (c) Post office deposit (d) OD

ACCOUNTANCY

1. Interest payable on the capital is charged to

(a) Profit and loss account

(b) Profit and loss adjustment account

(c) Realisation account

(d) Profit and loss appropriation account

2. ________________ is a partner whose share in profit increases

as a result of reconstitution of the firm

(a) Gaining partner (b) Sacrificing ratio

(c) Existing partner (d) None of these

3. At the time of retirement of a partner, if goodwill appears in the

balance sheet it must be written off, the capital account of all
partners are debited to

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(a) The old profit-sharing ratio (b) The new-profit sharing ratio

(c) The capital ratio (d) All of these

4. When it is agreed that a partner will be paid a lump sum amount

for dissolution if the payment is made by the firm, the payment is
debited to

(a) Realization account (b) Partners capital account

(c) All the partners capital account (d) All of them

5. Debentures may be redeemed

(a) On maturity in lump sum (b) By conversion

(c) In installments by draw of lots (d) All of these

6. A and B are sharing profits and losses equally with effect from 1st
april 2012 they agree to share profit in the ratio of 4:3 then what
will be the individual partners gain or sacrifice due to change in ratio

(a) 1/4th share of both (b) 1/3 rd share

(c) 4/3 rd share (d) None of these

7. Where it is agreed that a partner will be paid a lump sum amount

for dissolution if the payment is made by the firm the payment is
debited to

(a) Realization account (b) Partners capital account

(c) All the partners capital account (d) Both A and C

8. Which of the following ratios indicates the short term liquidity of

a business?

(a) Inventory turnover ratio (b) Debt equity ratio

(c) Acid test ratio (d) Proprietary ratio

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9. The maximum amount beyond which a company is not allowed to

raise funds by issue of shares is

(a) Issued capital (b) Reserve capital

(c) Nominal capital (d) Subscribed capital

10. As a director of a company you had invited applications for Rs

30,000 equity shares of Rs 10 each at a premium of Rs 2 each the
total application money received @ Rs 2 per share was 72000 which
kind of subscription is this

(a) Oversubscription (b) Subscription in arrears

(c) Undersubscription (d) None of these

11. When was Indian partnership act enacted?

(a) 1950 (b) 1932 (c) 1942 (d) None of the above

12. Debenture interest is paid

(a) At the pre-determined rate

(b) At variable rate

(c) At a rate based on net profit of the company

(d) At a rate as determined by the company from time to time

13. At the time of dissolution of the firm, the assets and liabilities
appearing in the balance sheet are transferred to

(a) Revaluation account

(b) Realization account

(c) Partners capital account

(d) None of these

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BUSINESS STUDIES

1. Rama (P) ltd uses environment-friendly techniques of production

which type of objective the company strives to attain

(a) Social objective of management

(b) Organizational objective of management

(c) Personal objective of management

(d) None of these

2. The following is not an objective of management

(a) Earning profits (b) Growth of the organization

(c) Providing employment (d) Policy making

3. Mohan, a manager does not distribute the work amongst his

subordinate, either according to capability or proportionately

(a) Principle of unity of command (b) Principle of equity

(c) Principle of discipline (d) None of the above

4. In an organization Ashok and sheela are working at the same

posts but being male employee Ashok has more rights than Sheela?
Which value is violated here?

(a) Gender biasness (b) Conservatism

(c) Effect of male dominating society (d) Inequality of rights for same work

5. After the change in government policies, foreign companies like

coca-cola has prohibited to work in India. What value is being
overlooked here?

(a) Encouragement to country made products

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(b) Development of market for domestic products

(c) Development of national values

(d) All the above

6. An Electronic company manufacturing TV and refrigerator wants

to bring two new products washing machines and AC's in the market
for each product seperate division are to be set up Incharge of
working machine division will be female and disabled person
respectively Which values has been considered here?

(a) Women Empowerment

(b) Promotion of equality

(c) Increase of job opportunity with production

(d) All of them

7. An automobile company runs a factory in a backward area It has

opened a training center to train the people Which values has been
kept in mind here

(a) Helpful in availing trained employees

(b) Violating the rules and condition

(c) False advertisement

(d) Exploitation of worker

8. Leadership style in which the leader consults with his

subordinates before making any final decision is

(a) Autocratic leadership style (b) Laissez-fair leadership style

(c) Democratic leadership style (d) None of these

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9. A liquor manufacturing firm provides liquors to its employees at

cheaper rates to motive them which value are deficient in this plan

(a) Development of democratic value

(b) Coordination spirit

(c) Encouragement of drinking habits

(d) Difficulty in fixing the responsibility

10. A company wants to establish a new units in which a machinery

of worth rs 10 lakh is involved Which type of decision involved in
financial management

(a) Capital budgeting decision (b) Short term investment decision

(c) Financial decision (d) Investment decision

11. Companies with a higher growth pattern are likely to

(a) Pay lower dividends

(b) Pay higher dividends

(c) Dividends are not affected by growth consideration

(d) None of the above

12. Amazon is a well known online retailer It has grown by

differentiating itself from its rivals and being highly competitive.
Amazon is an online retailer Which of the following elements of the
marketing mix does this represent

(a) Price (b) Product

(c) Promotion (d) Place

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13. Which of the following is not a principle of management given

by taylor?

(a) Science, not rule of the thumb

(b) Functional formanship

(c) Maximum not restricted output

(d) Harmony not discord

14. A tea producer uses such packets/things for packing tea, which
can be used even after consuming the tea, for other purposes Here
which values are being affected by him?

(a) Optimum utilization of resources

(b) Environment protection

(c) Increasing the cost by using box/containers

(d) All of the above

ANSWERS FOR QUESTION PAPER - 2

ECO.1 d ECO.11 c ACT.8 c BST.5 d
ECO.2 c ECO.12 c ACT.9 c BST.6 d
ECO.3 a ECO.13 c ACT.10 a BST.7 a
ECO.4 c ACT.1 d ACT.11 b BST.8 c
ECO.5 b ACT.2 a ACT.12 a BST.9 c
ECO.6 b ACT.3 a ACT.13 b BST.10 a
ECO.7 b ACT.4 b BST.1 a BST.11 a
ECO.8 a ACT.5 d BST.2 d BST.12 c
ECO.9 b ACT.6 a BST.3 b BST.13 b
ECO.10 d ACT.7 b BST.4 a BST.14 d

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QUESTION PAPER - 3

Questions: 40 Time: 40 Minutes

ECONOMICS

1. When Total utility becomes maximum then marginal utility will be

(a) Minimum (b) Average (c) Zero (d) Negative

2. Rightward shift of PPC indicate

(a) Improve of technology

(b) Quantam of resources increase

(c) Both A and B

(d) None

3. If a rupee can buy 100g of sugar,500g of rice and 500g of salt

and Total utility from these is of 4 utility from these is of 4 utilities
then marginal utility from these will be

(a) 3 (b) 2 (c) 4 (d) 5

4. Prices of x decrease from Rs 10 to Rs 5 demand of X increases

from Rs 5 to Rs 10 If we take the absolute value than how much
more chairs can be demanded

(a) 10 (b) 5 (c) 15 (d) 12

5. According to Marshall the basis of consumer surplus is

(a) Law of diminishing marginal utility

(b) Law of equi-marginal utility

(c) Law of proportions

(d) All the above

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6. You plan to attend the NCc camp for 2 months . If you do you
won't be able to take your usual part time job that pays rs 10,0000
for 2 months and you won't be able to live at home for free The cost
of NCC are living expenses 2000 costume and stationery 3000 study
material 1000. What will the marginal opportunity cost

(a) 10,000 (b) 16000 (c) 15000 (d) None of these

7. The main cause of cyclical unemployment is that

(a) Firm engage in race, gender and sex discrimination in their hiring
practices

(b) Some individuals do not have marketable job skills

(c) The level of overall economic activity fluctuates

(d) Workers often voluntarily quit a job to look for a better job.

8. Gifts in cash, scholarship to the student, old age pension to the

senior citizens are examples of:

(a) Factor incomes (b) Transfer income

(c) Net factor income (d) None of these

9. What will be the value of K when CRR is 5%?

(a) 15 (b) 20 (c) 25 (d) 25

10. Which of the following would cause the demand curve for
automobiles to shift to the left?

(a) An increase in the price of automobiles

(b) An increase in the interest rate paid to borrow money to pay for
automobiles

(c) An increase in buyer's income

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(d) An increase in the cost of production of automobiles

11. In consumption line C=a+by what does 'b' donates

(a) Multiplier of income (b) MPS

(c) Slope of consumption line (d) C/y

12. Which of the following is not capital expenditure?

(a) Salary paid to the govt. employees

(b) Purchase of a machine from Korea

(c) Repayment of loan taken from the IMF

(d) Interest paid on national debt

13. Which among the following is not the legal tender money?

(a) Coin (b) Paper notes (c) Cheques (d) Account payables

ACCOUNTANCY

1. M and N are partners in a firm. M has given a loan of Rs 8000 to

the firm on 1st July 2012.The partnership deed is entitled upon the
provision of interest on partners loan than What is the amount of
interest payable on the loan advanced by M to the firm the book are
closed on 31st march every year

(a) 460 (b) 300 (c) 360 (d) 420

2. X and Y are partners sharing profit in the ratio of 3:2 Z is admitted

with 1/4th share in profits which he acquires equally from both
partners The new ratio will be:

(a) 9:6:5 (b) 19:11:10

(c) 3:3:2 (d) 1:1:1

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3. According to the partnership act the interest payable to the

deceased partner on the amount left by him will be

(a) 6%pa (b) 10%pa (c) The bank rate (d) 8%pa

4. In case debentures of rs 10,000 are issued at par but payable at

the premium of 10% the premium payable will be debited to

(a) Debentures suspense account

(b) Premium on redemption of debentures account

(c) Loss on issue of debentures account

(d) Both A and C

5. Discount or loss on issue of debentures to be written off within 12

months of the data of balance sheet is shown as

(a) Other current assets (b) Other non-current assets

(c) Other long-term liabilities (d) Other current liabilities

6. When the existing partners of a firm allow a new person in a firm

known as

(a) Retirement of a partner

(b) Admission of a partner

(c) Contribution of a capital

(d) None of the above

7. The opening stock of a company is Rs 40,000 and the closing

stock is Rs 50,000. If the purchases during the year are Rs 2,00,000
the cost of goods sold will be

(a) Rs 2,10,000 (b) Rs 2,00,000

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(c) Rs 1,90,000 (d) Rs 1,80,000

8. Which of the following should be deducted in the balance sheet of

a company from the share capital to find out paid-up capital?

(a) Calls in advance (b) Calls in arrears

(c) Share forfeiture (d) Discount on issue of shares

9. The capital of partners are fixed, then at the end of financial year
a partners drawings are transferred to the:

(a) Credit side of the partners capital account

(b) Credit side of the partners capital account

(c) Debit side of the partnership bank account

(d) Debit side of the partners current account

10. A company has issued 10,000 equity shares of Rs 10 each and it

has called the total nominal value. It has received the total amount
except that on500 equity shares it has not received the final call of
Rs 3. These 500 equity shares will be shown as

(a) Subscribed and fully paid up

(b) Subscribed but not fully paid up

(c) Issued Share capital

(d) None of the above

11. The document containing the terms and conditions of the

agreement between partners are said to be

(a) Partnership agreement (b) Partnership deed

(c) Both A and B (d) None of these

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12. As per AS-26 only ________ goodwill will be recorded in the

books of accounts

(a) Purchased (b) Sales (c) Purchase return (d) All of these

13. If on share of nominal value of Rs10, Rs8 have been called up

and received by the company, it will be shown as

(a) Subscribed and fully paid up (b) Subscribed but not fully paid up

(c) Issued share capital (d) None of the above

BUSINESS STUDIES

1. Workers are included at which level of management

(a) Non-managerial (b) Managerial level

(c) Both a and b (d) None of them

2. An industrial unit working in a backward area opens school for

education at nominal cost for the children of its employees and local
people. By this act which value is promoted here

(a) Helpful in increasing literacy rate

(b) Development of society

(c) Increase in employment opportunities in backward areas

(d) All of the above

3. Mohan a manager expects his sub ordinates to work for the

happiness and pleasure of being is the organization

(a) Principle of unity of command

(b) Principle of remuneration to employees

(c) Principle of discipline (d) Principle of equity

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4. An organization has done plantation around its factory premises

and only after purifying the wastes it throws it into the draws which
values are being followed by the organization

(a) Safety from water and air pollution

(b) Protection of environment

(c) Fulfilling the social responsibility

(d) All the above

5. A company needs a detailed plan for its new project construction

of a shopping mall what type of plan is it?

(a) Programme (b) Rule (c) Strategy (d) All the above

6. Which source of recruitment has the benefit of wider choice?

(a) External source recruitment (b) Internal source of recruitment

(c) Both of these (d) None of these

7. What is the total no. of elements of directing?

(a) Two (b) Four (c) Three (d) Five

8. The highest level need in the need hierarchy of Abraham Maslow:

(a) Safety needs (b) Belongingness need

(c) Self actualization need (d) Prestige need

9. An efficient control system helps to

(a) Accomplish organizational objective

(b) Boost employee morale

(c) Judge accuracy of standards (d) All of the above

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10. Which of the following concept increases the return on equity

shares with a change in the capital structure of a company?

(a) Trading on equity (b) Cash flow statement

(c) Capitalization (d) Financial leverage

11. Higher dividend per share is associated with:

(a) High earnings, high cash flow, unstable earnings and high growth
opportunities

(b) High earning, high cash flows, stable earnings and high growth
opportunities

(c) High earning, high cash flows, stable earnings and lower growth
opportunities

(d) High earnings, low cash flows, stable earnings and lower growth
opportunities

12. Which of the following statement best describes mental

revolution?

(a) It implies change of attitude

(b) The management and workers should not pay the game of one
upmanship

(c) Both management and workers require each other

(d) Workers should be paid more wages

13. Which of the following statement is false about taylor and fayol?

(a) Fayol was a mining engineer whereas Taylor was a mechanical engineer

(b) Fayol's principle are applicable in specialized situation whereas Taylor's

principles have universal application

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(c) Fayol's principles were formed through personal experience where as

Taylor's principles were formed through experiments

(d) Fayol's principles are applicable at the top level of management where as
Taylor's principles are applicable at the shop floor.

14. Consumer protection act was enacted in

(a) 1987 (b) 1989 (c) 1986 (d) 1980

ANSWERS FOR QUESTION PAPER - 3

ECO.1 c ECO.11 b ACT.8 b BST.5 a
ECO.2 c ECO.12 a ACT.9 d BST.6 a
ECO.3 c ECO.13 d ACT.10 b BST.7 a
ECO.4 b ACT.1 c ACT.11 b BST.8 c
ECO.5 a ACT.2 b ACT.12 a BST.9 d
ECO.6 b ACT.3 a ACT.13 b BST.10 a
ECO.7 c ACT.4 c BST.1 a BST.11 c
ECO.8 b ACT.5 a BST.2 d BST.12 a
ECO.9 b ACT.6 b BST.3 b BST.13 b
ECO.10 b ACT.7 c BST.4 d BST.14 c

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QUESTION PAPER - 4

Questions: 40 Time: 40 Minutes

ECOMOMICS

1. Utility means

(a) Power to satisfy a want (b) Usefulness

(c) Harmfulness (d) Willingness of a person

2. A point below PPC indicates

(a) Full employment and efficient use of resources

(b) Under utilization and insufficient of resources

(c) Growth of resources

(d) None of the above

3. Other things being equal when with a fall in prices quantity

demanded of a commodity rises which is known

(a) Contraction of demand (b) Increase in demand

(c) Decrease in demand (d) Extension in demand

4. Supposing the price of ice-cream is 4 per cup and demand is for 1

cup. If the price of ice-cream falls to Rs 2 per cup demand increase
to 4 cup then elasticity of demand will be

(a) 6 (b) 4 (c) -2 (d) 2

5. Leaving a job of Rs 40,000 per month and evicting his tenant who
was paying Rs 5000 per month for the factory premises an
entrepreneur undertakes production of garment He pays Rs

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10,00,000 for the purchase of input which of the following is an

implicit cost

(a) 10,00,000 (b) 5000, 40000

(c) 5000 (d) 40,000

6. Yours friend's and your birthday is on the same day on the

occasion both of you exchange gifts. Each of you spends Rs 200 on
buying the gift. Both of you also spend Rs 400 on your party and
share the expense equally. Then what will be the opportunity cost of
celebrating birthday

(a) 200 (b) 600 (c) 400 (d) 300

7. Bank can create money

(a) Only by illegally printing additional dollar bills

(b) By paying interest to their depositors

(c) By making loans that result in additional deposits

(d) By offering financial services such as stick market brokerage

8. What will be the value of capital when stock is 15000 and change
in stock is 5000?

(a) 15000 (b) 5000 (c) 10,000 (d) 20,000

9. When K=1 then

(a) MPC<0 (b) MPC>1 (c) MPC=1 (d) MPC=0

10. Which of the following is an example of 'portfolio investment'

(a) An American places funds in a saving account in Canada

(b) Tokyo Bank of Japan buys Union Bank of the United States

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(c) An American puts $10,000 into money

(d) All of the above

11. As a result of increase in increase in investment by Rs 1000

crore rational income increased by Rs 5000 crore. Than value of MPC
and MPS will be

(a) 0.2,0.8 (b) 0.8,0.2

(c) Both of them satisfy (d) None of these

12. Which of the following is a revenue receipt?

(a) Loan from the IMF (b) Grant received from the world bank

(c) Borrowing from the public (d) Sale of the shares held by government

13. Shape of IC is__________________

(a) Downward sloping and convex to the origin

(b) Upward sloping and convex to the origin

(c) Downward sloping and concave to the origin

(d) Upward sloping and concave to the origin

ACCOUNTANCY

1. Ram and Mohan two partners draw for private use Rs 1,20,000
and Rs 80,000. Interest is chargeable @6% p.a on the drawing.
What is the amount of total interest of Ram?

(a) 40,000 (b) 3600 (c) 2400 (d) None of the Above

2. If the incoming partners is to bring in premium for goodwill in

cash and also a balance exists in the goodwill account is written off
among the old partners in

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(a) The new profit sharing ratio (b) The old profit sharing ratio

(c) The sacrificing ratio (d) It will remain same

3. In the event of death of a partner the amount of General reserve

is transferred to partner's capital account in

(a) The new profit sharing ratio (b) The old profit sharing

(c) Gaining ratio (d) The capital ratio

4. SEBI guidelines in respect of redemption of debentures are to

protect the interest of

(a) Debenture holders (b) Creditors

(c) Shareholders (d) Bankers

5. Debentures interest is paid

(a) At a pre-determined rate

(b) At variable rate

(c) At a rate based on net-profit of the company

(d) At a rate as determined by the company from time to time

6. The balance in the investment fluctuating fund after meeting the

loss on revaluation of investment at the time of admission of a
partner will be transferred to

(a) The old partners capital account (b) The revaluation account

(c) The general reserve (d) Both a and B

7. The balance as per bank statement of a company is Rs

12,500(DR) the company deposited two cheques worth Rs 8,500 out
of which one cheque for Rs 2800 was dishonoured which was not
entered in cash book the credit balance as per cash book is
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(a) Rs.21000 (b) Rs. 15300 (c) Rs. 23800 (d) Rs. 9700

8. Which of the following statement is false?

(a) The forfeited shares should not be issued at a premium

(b) At the tie of forfeiture of shares share premium should not be debited
with the amount of premium already received

(c) Shares can be issued at a discount only after one year from the
commencement of business

(d) Share premium cannot be utilized to redeem preference share

9. A company has distributed profit $4,90,000. Profit share ratio of

Mr A ,Mr B and Mr C is 2:3:5 respectively What will be the profit
share for Mr C in distributable profit

(a) $98,000 (b) $1,47,000 (c) $2,45,000 (d) $3,43,000

10. Discount on issue of shares is written off in

(a) 10 years (b) 8 years (c) 7 years (d) 3 to 5 years

11. When the incoming partner brings in his share of premium for
goodwill in cash it is adjusted by crediting to

(a) His capital account (b) Premium account

(c) Sacrificing partners capital account

(d) Both A and B

12. If the loss on reissue of shares is less than the amount forfeited
the surplus is transferred to

(a) Capital reserve (b) An asset

(c) Revenue receipts (d) None of these

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13. If a share of Rs 10 issued at a premium of Rs 2 on which the full

amount has been called and Rs 8 (included premium) paid is
forfeited the share capital amount should be debited with

(a) Rs 12 (b) Rs 10 (c) Rs 8 (d) Rs 6

BUSINESS STUDIES

1. Name the level of management at which the managers are

responsible for implementing and controlling the plans and
strategies of the organization

(a) Lower level management (b) Middle level management

(c) Top level management (d) None of these

2. A factory established in a residential locality uses machines

creating heavy noise people. Due to noise pollution student can't
study properly and resident can't sleep/work properly which value is
affect here

(a) Noise pollution

(b) Bad effect on the health of employees

(c) Bad effect on the studies and health of children

(d) All the above

3. Which of the following statement best describes 'mental

revolution'?

(a) It implies change in attitude

(b) The management and workers should not play the game of one
upmanship

(c) Both management and workers require each other

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(d) Workers should be paid more wages

4. Which of the following does not explain the impact of government

policy changes on business and industry?

(a) More demanding customers (b) Increasing competitions

(c) Change in agricultural prices (d) Market orientation

5. For delegation to be effective it is essential that responsibility be

accompanied with necessary

(a) Authority (b) Manpower (c) Incentives (d) Promotions

6. Name the training method in which a newly appointed employee

is acquainted with the organization

(a) Induction training (b) Vestibule training

(c) Apprenticeship programme (d) None of these

7. Temporary separation of the employee from the employer on the

initiative of the latter known as

(a) Recruitment (b) Lay off (c) Promotion (d) None of these

8. Status comes under the following type of barriers

(a) Semantic barrier (b) Organizational barrier

(c) Non-semantic barrier (d) Psychological barrier

9. Controlling function of an organization is

(a) Forward looking

(b) Backward looking

(c) Forward as well as backward looking

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(d) None of the above

10. Higher-debt equity ratio results in

(a) Lower financial risk

(b) Higher degree of operating risk

(c) Higher degree of financial risk

(d) Higher EPS

11. Current assets are those assets which get converted into cash

(a) Within six months

(b) Within one year

(c) Between one and three year

(d) Between three and five years

12. Which of the following statement best describes the principle of

'Division of work'?

(a) Work should be divided into small tasks

(b) Labour should be divided

(c) Resources should be divided among jobs

(d) It leads to specialization

13)in an organization Ashok and Sheela are working at the same

posts but being male employee Ashok has more rights than Sheela
Which value is violated here?

(a) Gender biasness

(b) Effect of male dominating society

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(c) Both A and B

(d) Conservatism

14. To publish a magazine under the title 'upbhokta jagran' is an

example of a consumer right which right reflects here

(a) Right to be heard

(b) Right to consumer education

(c) Right to choose

(d) None of the above

ANSWERS FOR QUESTION PAPER - 4

ECO.1 a ECO.11 a ACT.8 a BST.5 a
ECO.2 b ECO.12 c ACT.9 c BST.6 a
ECO.3 a ECO.13 a ACT.10 d BST.7 b
ECO.4 a ACT.1 b ACT.11 b BST.8 b
ECO.5 b ACT.2 b ACT.12 a BST.9 c
ECO.6 c ACT.3 b ACT.13 a BST.10 c
ECO.7 c ACT.4 a BST.1 b BST.11 b
ECO.8 d ACT.5 a BST.2 d BST.12 a
ECO.9 c ACT.6 a BST.3 a BST.13 a
ECO.10 a ACT.7 d BST.4 c BST.14 c

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QUESTION PAPER - 5

Questions: 30
ACCOUNTS Time: 30 Minutes

1. Working capital is a term meaning

(a) The Capital less drawings
(b) The excess of current assets over the current liabilities
(c) The total of fixed assets – current assets
(d) The amount of capital invested by the proprietor

2. A credit balance brought down on a Rent Account means

(a) We have paid too much rent
(b) We have paid too little rent
(c) We owe that rent at that date
(d) We have paid that rent in advance at that date

3. A debit balance brought down on a Packing Materials account

means
(a) We have lost money on packing materials
(b) We owe for packing materials
(c) We are owed for packing materials
(d) We have a stock of packing materials unused

4. If we take goods for own use we should:

(a) Debit purchases account: Credit drawings account
(b) Debit sales account: Credit Stock account
(c) Debit drawings account: Credit stock account
(d) Debit drawings account: Credit Purchases account

5. Capital Expenditure is:

(a) The cost of running business the business on a day to day basis
(b) Money sent on buying fixed assets or adding value to them
(c) Money spent on selling fixed assets
(d) The extra capital paid in by the proprietor

6. In the business of C Sangster, who owns a clothing store, which of

the following are the Capital Expenditure?
(i) Shop fixtures bought (ii) Wages of assistant

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(iii) New Van bought (iv) Petrol Van

(a) (ii) & (iv) (b) (i) & (iii)

(c) (ii) & (iii) (d) (i) & (ii)

7. If Rs. 500 was shown added to purchases instead of being added

to a fixed asset:
(a) It would not affect net profit
(b) Both gross & net profits would be understated
(c) Net profit only would be understated
(d) Net profit only would be overstated

8. A cheque paid by you, but not yet passed through the banking
system, is:
(a) A dishonoured cheque (b) A standing order
(c) A credit transfer (d) An unpresented cheque

9. A bank reconciliation statement is a statement:

(a) Sent by bank when we have made an error
(b) Drawn up by us to verify our cash book balance with the bank statement
balance
(c) Drawn up by the bank to verify the cash book
(d) Sent by the bank when the account is overdrawn

10. Which of the following is not true:

A bank reconciliation statement is
(i) Part of double entry system
(ii) Not a part of double entry system
(iii) Sent by the firm to the bank
(iv) Posted to the ledger accounts

(a) (ii), (iii) & (iv) (b) (i), (iii) & (iv)
(c) (i), (ii) & (iv) (d) (i) & (ii)

11. Which of the following should be entered in a Journal?

(i) Payment for cash purchases
(ii) Fixtures bought on credit
(iii) Credit ales of goods
(iv) Sales of surplus machinery

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(a) (ii) & (iii) (b) (iii) & (iv)

(c) (ii) & (iv) (d) (i) & (iv)

12. The Journal is:

(a) Not part of the double entry system
(b) A supplement to the cash book
(c) Part of the double entry system
(d) Used when other journals have been mislaid

13. Given a desired cash float of Rs. 200/- , if Rs. 146 is spent in the
period, how much will be reimbursed at the end of the period?
(a) Rs. 200/- (b) Rs. 53/-
(c) Rs. 146/- (d) Rs. 254/-

14. When a petty cash book is kept there will be:

(a) The same number of entries in the general ledger
(b) No entries made at all in the general ledger for the items paid by petty
cash.
(c) Fewer entries made in the general ledger
(d) More entries made in the general ledger

15. Errors are corrected via the journal because:

(a) It provides a good record explaining the double entry records
(b) It saves the bookkeeper’s time
(c) It is much easier to do
(d) It saves entering them in the ledger

BUSINESS STUDIES
16. Which of the following does not characterize business activity?
(a) Salary or Wages
(b) Sale or exchange of Good & Services
(c) Presence of Risk & Services
(d) Production of goods

17. Which of the broad categories of industries covers oil refinery and
sugar mills?
(a) Secondary (b) Tertiary
(c) Primary (d) None of them

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18. Which of the following cannot be classified as an auxiliary to

trade?
(a) Warehousing (b) Mining
(c) Transport (d) Insurance

19. The occupation in which people work for others and get
remunerated in return is known as:
(a) Profession (b) Business
(c) None of them (d) Employment

20. The industries which provide support services to other industries

are known as
(a) Commercial industries (b) Primary industries
(c) Secondary industries (d) Tertiary industries

21. Social responsibility is:

(a) Narrower than legal responsibility
(b) Same as legal responsibility
(c) Broader than legal responsibility
(d) None of these

22. If business is to operate in a society which is full of diverse and

complicated problems, it may have

(a) Little chance of failure

(b) Little chance of success
(c) No relation with success or failure
(d) Great chance of success

23. Business people have the skills to solve

(a) No social problems (b) Some social problems
(c) All social problems (d) All economic problems

24. That an enterprise must behave as a good citizen is an example of

its responsibility towards
(a) Consumers (b) Owners
(c) Workers (d) Community

25. Environmental protection can best be done by the efforts of

(a) Business People

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(b) Government
(c) Scientists
(d) All of these

ECONOMICS
26. Who among the following was the first chairman of planning
commission?
(a) Dr. Rajendra Prasad (b) Pt. Jawahar lal Nehru
(c) Sardar Vallabh Bhai Patel (d) J. B. Kripalani

27. Who is the ex-officio Chairman of planning commission and

National development council?
(a) Prime Minister (b) President
(c) Finance Minister (d) Commerce Minister

28. Which statement is correct for Indian Planning Commission?

(a) It is not defined in Indian Constitution
(b) Members and Vice Chairman of it do not have fixed working duration
(c) Members do not require any minimum education
(d) All of these
29. Persons below the poverty line in Indian are classified as such
based on whether
(a) They are entitled to a minimum prescribed food basket
(b) They get work for a prescribed minimum number of days in a year
(c) They belong to agricultural labourer household and the scheduled
caste/tribe social group
(d) Their daily wages fall below the prescribed minimum wages

30. Which of the following Committee‟ s recommendations are being

followed for estimating Poverty Line in India
(a) Dutt Committee (b) Chelliah Committee
(c) Chakravorty Committee (d) Lakdawala Committee

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ANSWERS FOR QUESTION PAPER - 5

1 b 7 b 13 c 19 d 25 d
2 c 8 d 14 c 20 d 26 b
3 d 9 b 15 a 21 c 27 a
4 d 10 b 16 a 22 b 28 d
5 b 11 c 17 a 23 b 29 a
6 b 12 a 18 b 24 d 30 d

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QUESTION PAPER - 6

Questions: 50
Time: 60 Minutes
1. Stock of medicine as on 1st Jan 2009 5,000
Outstanding creditors for medicine on 1st Jan 2009 3,000
Medicine purchased during the year 12,000
Value of medicine spoiled during the year 400
Stock of medicine on 31st Dec 2009 3,500
Find what amount of medicine consumed to be posted to
Income and Expenditure for the year ended 31st Dec 2009
A/c.
a. Rs.16,500
b. Rs.15,500
c. Rs.12,500
d. Rs.13,500

2. A and B are partners in a firm. A is to get a commission of

10% on net profit before charging any commission. B is to be
get commission of 10% on net profit after charging all
commission. Net profit before charging any commission was
Rs.2,20,000. Find out the commission of A and B.
a. Rs.22,000 and Rs.18,000
b. Rs.22,000 and Rs.16,000
c. Rs.20,000 and Rs.18,000
d. Rs.16,000 and Rs.18,000

3. A and B are partners sharing profit in 5:3. C joins for 1/5th

share which he acquires from A and B in the ratio of 60% and
40%. Find new ratio of A,B and C.
a. 101:59:40
b. 100:59:40
c. 101:49:40
d. 101:59:39

4. L, M and N are the partners sharing profits and losses in the

ratio 6:5:4. M died on 31.03.2009 and profits for the
accounting year ending December 2008 were Rs36,000. How
much share in profits for the period 01.01.2009 to 31.03.2009
will be credited to M‟s Account.

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a. Rs.3,300
b. Rs.3,000
c. Nil
d. Rs.5,000

5. A,B and C are partners with profit sharing ratio 4:3:2. B

retires and Goodwill Rs10,800 was shown in books of account.
If A & C shares profits of B in 5:3, then find the value of
goodwill shared between A and C.
a. Rs.1,850 and Rs.1,950
b. Rs.1,650 and Rs.1,750
c. Rs.2,000 and Rs.1,600
d. Rs.2,250 and Rs.1,350

6. The Securities Premium amount may be utilized by a

company for_____.
a. Writing off any loss on sale of fixed asset
b. Writing off any loss of revenue nature
c. Payment of dividends
d. Writing off the expenses/discount on the issue of debentures

7. Jingle Bells Ltd. Issues 80,000 equity shares of Rs.10 each,

payable as under:
On application Rs.3
On allotment Rs.4
On first call Rs.2
On final call Rs.1
The applications received for 1,20,000 shares were dealt with
as under:
Applicants of 20,000 shares were allotted in full.
Applicants of 80,000 shares were allotted 60,000 shares on
pro-rata basis.
Applications for 20,000 shares were rejected.
Total excess money received as compared to the number of
shares allotted=?
a. Rs.3,00,000
b. Rs.2,40,000
c. Rs.3,60,000
d. Rs.1,20,000

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8. P. Ltd. Issued 5,000, 12% debentures of Rs.100 each at

premium of 10%, which are redeemable after 10 years at a
premium of 20%. The amount of loss on redemption of
debentures will be = ?
a. Rs.80,000
b. Rs.40,000
c. Rs.1,00,000
d. Rs.8,000

9. Blue Jay Garments Ltd. is engaged in the export of

readymade garments. The company purchased a machinery of
Rs.10,00,000 for the use in packaging of such garments. State
whether the cash flow due to purchase of machinery will be
cash flow from operating activities, investing activities or
financing activities.
a. Operating activity
b. Financing activity
c. Investing activity
d. Cash equivalents

10. If X Ltd. Has a liquid ratio of 7:3 and its stock is Rs.25,000
and current liabilities are Rs.75,000, what will be the amount
of liquid assets ?
a. Rs.1,75,000
b. Rs.2,00,000
c. Rs.2,25,000
d. Rs.5,000

11. Fixed deposits are posted under the head___ in the

companies balance sheet
a. Secured loan
b. Unsecured loan
c. Current liability
d. Share capital

12. It is the process whereby an executive develops an orderly

pattern of group efforts among his subordinates and secures
unity of action in the pursuit of common purpose. Which
concept is referred in this statement?
a. Management

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b. Coordination
c. Profession
d. None of the above

13. The principle which suggests that the interests of an

organization should take priority over the interest of any one
individual employee.
a. Espirit de Corps
b. Order
c. Subordination of Individual interest to General Interest
d. Unity of Direction

14. Which of the following is not an element of social

environment?
a. Concern with quality of life
b. Life expectancy
c. Birth and death rates
d. Rates of saving and investment

15. Planning cannot forsee or assess future trends in the

environment and thus there may be obstacles to effective
planning. The limitation of planning referred here is
a. May not work in a dynamic environment
b. Leads to rigidity
c. Does not guarantee success
d. Reduces Creativity

16. They provide details in the exact manner in which any

work is to be performed. The type of plan is
a. Methods
b. Procedures
c. Rules
d. Programmes

17. Krishna Ltd is manufacturing toys and have production,

marketing, finance and personnel departments in the
organization. The type of organization structure that Krishna
Ltd. should be following is
a. Divisional structure
b. Formal organization

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c. Functional structure
d. All of the above

18. Process of searching for prospective employees and

stimulation them to apply for jobs in the organization is
known as:
a. Selection
b. Training
c. Placement
d. Recruitment

19. Which of the following is not a non-financial incentive for

motivating people
a. Retirement Benefits
b. Career Advancement opportunity
c. Job Security
d. Employee participation

20. Controlling helps to minimize dishonest behavior on the

part of the employees by keeping a close check on their
activities. Which importance of controlling is referred here?
a. Efficient use of resources
b. Ensures order and discipline
c. Facilitates coordination in action
d. Accomplish organizational goals

21. Borrowed funds as a source of finance cannot be in the

form of
a. Public deposits
b. Retained earnings
c. Loans
d. Debentures

22. Which of the following is a protective function of SEBI ?

a. Undertaking inspection, conduction enquiries of stock exchanges
b. Conducting research and publishing useful information
c. Regulation of takeover bids by companies
d. None of the above

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23. Advertisement showing women running after a man

because he is using a particular perfume is not good. Which
objection of advertising is reflected here
a. Undermines social values
b. Encourages sale of Inferior products
c. Some advertisements are in bad taste
d. All of the above

24. If value of goods or services in question, along with the

compensation claimed, exceeds Rs.20 lakhs but does not
exceed Rs. 1 crore then complaint can be made to
a. District forum
b. State Commission
c. Government
d. National Commission

25. Believe in the best is the punch line that you would
associate with
a. TVS Motors Ltd
b. Bajaj Auto Ltd
c. BPL
d. Toshiba

26. Who is the CEO to HCL Technologies

a. Shiv Nadar
b. Ratan Tata
c. Rajendra Pawar
d. Vineet Nayar

27. Opel Corsa is the brand of

a. Toyota
b. Ford
c. General Motors
d. Hindustan Motors

28. The full form of ASSOCHAM is:

a. Assets Chamber of Commerce & Industry
b. Associated chamber of commerce & Industry
c. Associated charter of commerce & Industry
d. Associated charter of Club & Industry

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29. If in the given diagram, the rectangle represents

Teachers, the square represents Painters and the triangle
represents Musicians.

Teachers who are musicians but not painters are denoted by

a. 2
b. 3
c. 4
d. 6

30. If „water‟ is called „food‟, „food‟ is called „tree‟, „tree is

called „sky‟, „sky‟, is called‟ wall‟, on which of the following
does a „fruit grow ?
a. Water
b. Food
c. Tree
d. Sky

31. A starts from his office and walks 3 km towards north. He

then turns right and walks 2 km and then turns right and
walks 5 km. He then turns right and walks 2 km and then
again turns right and walks 2 km. In which direction is he
from the starting point?
a. South
b. North-east
c. South east
d. He is at the starting point

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32. Pointing towards a person in a photograph, Kajal said, “He

is the only son of the father of my sister‟s brother.” How is
that person related to Kajal?
a. Maternal Uncle
b. Mother
c. Father
d. Brother

33. A and B are partners having capital of Rs. 50,000 and

Rs.60,000 respectively. Interest on capital is given @ 5%
p.a.. Profits for the year before appropriation is Rs.4,600
provide interest on capital out of profits. Increase allocated to
partners is:
a. Rs.3,000 and Rs.2,500
b. Rs.2,090 and Rs. 2,509
c. Rs.2,500 and Rs.2,091
d. Rs.600 and Rs.300

34. Under Capitalization basis goodwill is calculated by:

a. Average profits x years of purchase
b. Super profits x years of purchase
c. Total of the discounted value of expected future benefits
d. Super profit divided with expected rate of return

35. What would be the amount of actual average profile if

goodwill is valued Rs.98,000 at 5 years purchase of super
profile, normal rate of return is 10% and average capital
employed s Rs.5,00,000 ?
a. Rs.69,6000 b. Rs.1,48,000
c. Rs.4,40,000 d. Rs.48,000

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36. A and B are partners of a firm sharing profits in the ratio of

3:2. C was admitted for 1/5th share of profit. Machinery would
be appreciated by 10% (book value Rs.80,000 ) and building
would be depreciated by 20% (Rs.2,00,000). Unrecorded
debtors of Rs.1,250 would be bought to books and creditors of
Rs.2,750 died and needn‟t to pay anything. What will be the
profit /loss on revaluation?
a. Loss Rs.28,000
b. Loss Rs.40,000
c. Profit Rs.28,000
d. Profits Rs.40,000

37. Hari, Roy and Prasad are partners in the ratio of 3:5:1
respectively. Roy wants to retire. His share is being purchased
by Prasad. What would be the new ratio of Hari and Prasad
respectively?
a. 1:2 b. 2:1 c. 3:5 d. Equal

38. A Ltd. Acquired, assets worth Rs.15,00,000 form H Ltd. By

issued of shares of Rs.100 @ premium of 25%. The number of
shares issued to settle the purchase consideration will be:
a. 12,000 shares b. 15,000 shares
c. 18750 shares d. 11,250 shares

39. A purchased a machinery for Rs.1,80,000 for which he is

paying shares of Rs.100 each at 10% discount. How many
shares will he give as consideration?
a. 2,500 b. 2,000
c. 1,800 d. 3,000

40. A company issued 10,000 equity shares of Rs.10 each at a

premium of 20% for the redemption of 15,000 preference
share of Rs.10 each . If the company had sufficient profit, the
amount transferred to capital redemption reserve would be:-
a. Rs.50,000 b. Rs.1,00,000

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c. Rs.1,50,000 d. Rs.30,000

41. When debentures are issued at a discount and are

redeemable at a premium. Which of the following account is
debited at the time of issue of debentures?
a. Debenture account
b. Premium on redemption of debentures account
c. Discount on issue of Debentures Account
d. Capital Reserve Account

42. B Limited has issued its shares of Rs.10 each at a discount

of Rs.2 per share. Ram holding 100 shares could not pay final
call of Rs.5 per share. His shares were forfeited. Later on the
company decided to re-issue these shares. Maximum amount
of loss per share on such re-issue could be:
a. Rs.5
b. Rs.2
c. Rs.7
d. Rs.13

43. If the fiscal deficit of the Union Government is Rs. 75,000

crores relending to State is Rs. 25,000 crores, interest
payments are Rs. 25,000 crores, what is the amount of the
primary deficit?
a. Rs. 50,000 cr
b. Rs. 25,000 cr
c. Rs. 1,00,000 cr
d. Rs. 1,25,000 cr

44. Fiscal deficit in the Union Budget means

a. The difference between current expenditure and current revenue
b. Net increase in Union Governments borrowings from the Reserve
Bank of India
c. The sum of budgetary deficit and net increase in internal and
external borrowings
d. The sum of monetized deficit and budgetary deficit

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45. In which of the following sequences the change in

quantity of money leads to change in price level in the
Keynesian models?
a. Change in quantity of money - change in investment - change in
employment and output - change in rate of interest - change in price
level
b. Change in quantity of money - change in employment and output -
change in investment - change in the rate of interest - change in price
level
c. Change in quantity of money - change in investment - change in rate
of interest - change in employment and output - change in price level
d. Change in quantity of money - change in rate of interest - change in
investment - change in employment and output - change in price level

46. As long as the principle of diminishing marginal utility is

operating, any increased consumption of a good
a. Lowers total utility.
b. Produces negative total utility.
c. Lowers marginal utility and, therefore, total utility.
d. Lowers marginal utility, but may raise total utility.

47. In a preference ordering exercise in which two baskets of

goods are being considered, it is assumed by indifference
theory that the consumer is able to
a. Measure the amount of pleasure expected from the preferred
basket.
b. Say how much more one basket is valued over the other.
c. Calculate only the absolute value of the less desirable basket.
d. Make no absolute measure of the value of any of the market
baskets.
48. Suppose an individual spends all his income on only two
goods, good X and good Y. Moreover, suppose that you were
asked to derive his price consumption curve for good Y. Which
of the following would be allowed to vary?
a. Money income
b. The tastes of the consumer
c. The price good
d. The price of good

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49. A market demand curve can be derived by adding all the

individual demand curves
a. Vertically.
b. Horizontally.
c. In parallel.
d. Any of the above as long as it is consistent

50. Price elasticity at a given price is not affected by

a. The price of complements.
b. The price of substitutes
c. Change in tastes.
d. Change in supply

ANSWERS FOR QUESTION PAPER - 6

1 d 11 b 21 b 31 d 41 c
2 a 12 b 22 d 32 d 42 a
3 a 13 c 23 c 33 b 43 a
4 b 14 d 24 b 34 d 44 d
5 d 15 a 25 c 35 a 45 d
6 d 16 b 26 d 36 a 46 d
7 d 17 c 27 c 37 a 47 c
8 c 18 d 28 b 38 a 48 d
9 c 19 a 29 a 39 b 49 d
10 a 20 b 30 d 40 a 50 a

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