JEYPORE COLLEGE OF PHARMACY

DSBM MCQ FOR D.PHARM 2ND YEAR

1.In pharmaceutical trade ____________ plays the role of a retailer

a) Manufacturer
b) Chemist or druggist
c) Wholesaler
d) Distributor

Ans: - b

2.When a trader purchases goods from one country and sells the same to another country, it is
called _____________

a) Import
b) Export
c) Distribution
d) Entreport

Ans: - d

3._____________removes the hindrance of time

a) Banking
b) Transport
c) Insurance
d) Warehousing

Ans: - d

4.A business organisation run in partnership is called _____________

a) Firm
b) Company
c) Industry
d) Proprietor

Ans: - a

5.The maximum number of partners allowed in case of a banking firm is ______

a) Five
b) Ten
c) Twenty
d) Not more than twenty

Ans: - b

6.Itinerant retailers operate its business from: -

a) Fixed premises
b) Street stalls
 c) Moving from place to place
d) General store to another store

Ans: -c

7. Mail order business is :-

a) Wholesale trade
b) Direct selling trade
c) Retail trade
d) Retail trade by post

Ans: - d

8. The wholesalers and retailers are ________ middlemen

a) Functional
b) Merchant
c) Itinerant
d) Fixed shop

Ans: -b

9. The wholesaler deals with items manufactured by a single firm or company is called
____________

a) Manufacturer
b) Distributor
c) Stockist
d) Super stockist

Ans: - c

10. Minimum area required to start a retail drug store is: -

a) 10 sq. meter
b) 15 sq. meter
c) 5 sq. meter
d) 20 sq. meter

Ans: - a

11. After the selection of supplier, a mutual agreement is done between the supplier and buyer is
called _________

a) Tender
b) Storage
c) Codification
d) Contract

Ans: - d

12. In this method the price of the latest consignment in stock is used for calculating the value of
issue until that consignment is exhausted, then the next lot of pricing is used.

a) Replacement price
 b) Average cost
c) LIFO
d) FIFO

Ans: -c

13. This method is used for those goods which are subject to some wastage: -

a) Inflated price
b) LIFO
c) FIFO
d) Standard price

Ans: - a

14. The items which represents 10% of the total inventory but consume about 70% of the total
budget are called –

a) A items
b) B items
c) C items
d) None of the three

Ans: -a

15. Mention the items which cannot be represented by inventory carrying cost-

a) Salaries of store-keeper
b) Paper and its typing
c) Rent of storage
d) Loses in storage

Ans: -b

16. In a drug store, the expiry dated drug formulations are called –

a) Scrap items
b) Surplus items
c) Obsolete items
d) Dormant materials

Ans: - c

17. A drug store is called an ideal drug store if its inventory is –

a) In excess
b) Inadequate
c) Mearge
d) At level between excessive and inadequate

Ans: - d

18. The items which are moving temporarily because of seasonal production-

a) Scrap items
b) Surplus items
 c) Obsolete items
d) Dormant materials

Ans: -d

19. The items which has become useless due to change in design, product or process are called
_____________ items.

a) Scrap items
b) Surplus items
c) Obsolete items
d) Dormant materials

Ans: -c

20. The scrap which can be pre-determined or anticipated in advance due to manufacturing
operations.

a) Legitimate
b) Administrative
c) Defective
d) Surplus

Ans: -a

21. The system which is based on the utility of the material.

a) ABC analysis
b) EOQ
c) VED analysis
d) Perpetual inventory

Ans: -c

22. The technique which is based on the cost of the materials and money value of consumption: -

a) ABC analysis
b) EOQ
c) VED anlaysis
d) Perpetual inventory

Ans: - a

23.The level which represent the lower limit below which the stock of any item should not normally
be allowed to fall: -

a) Maximum stock level

b) Safety stock
c) Danger level
d) Re-order level

Ans: - b

24. The level which is fixed between the minimum and maximum stock levels.

a) Maximum stock level

 b) Safety stock
c) Danger level
d) Re-order level

Ans: - d

25. This level is generally below the minimum stock level.

a) Maximum stock level

b) Safety stock
c) Danger level
d) Re-order level

Ans: -c

26. The total time consumed between the recognition of the need of an item, till the time it is
received for use.

a) Rate of consumption
b) Lead time
c) Maximum stock level
d) Danger level

Ans: -b

27. A certificate that entitles its holder to a specified saving on the purchase of a specified product.

a) Trading stamps
b) Coupons
c) Bonus offer
d) Prize contest

Ans: - b

28. An art used to familiarise public with the product by informing of its description, uses, its
superiority over other brands, sources of its availability and price etc.

a) Advertising
b) Window display
c) Direct mailing
d) Salesman

Ans: -a

29. The means used to transmit the message from the advertiser to the public is known as __

a) Direct mailing
b) Visual media
c) Detailing
d) Advertising media

Ans: -d

30. Personal contact is also known as ______

a) Direct mailing
 b) Visual media
c) Detailing
d) Advertising media

Ans: -c

31. The collection and analysis of data or information bearing on the different aspects of the
marketing effort of a firm.

a) Trade press
b) Window display
c) Marketing research
d) Advertising

Ans: - c

32. In this method, a consumer panel is selected for getting information on the product and also
different aspects of the firm’s marketing strategy.

a) Personal interview
b) Telephone interview
c) Postal survey
d) Panel method

Ans: - d

33. The process of exploring the source of supply of the required personnel and stimulating the
prospective employees to apply for jobs in the organisation.

a) Recruitment
b) Selection
c) Physical examination
d) Reference check

Ans: - a

34. These test help to measure a candidate’s capacity to learn particular skills and his potential
abilities.

a) Personality test
b) Trade test
c) Aptitude test
d) Intelligence test

Ans: -c

35. These tests are designed to measure the applicant’s level of knowledge and skill already
achieved in a particular trade.

a) Personality test
b) Trade test
c) Aptitude test
d) Intelligence test

Ans: -b
36. The scientific process of improving the knowledge and skills of the employees for doing a
particular job.

a) Training
b) Selection
c) Recruitment
d) Promotion

Ans: - a

37. It refers to the process of introducing the new employees to the organisation as well as to the
existing staff.

a) Job training
b) Promotional training
c) Refresher training
d) Induction training

Ans: - d

38. In this method, trainees are assigned different roles, such as workers, manager, customer etc.

a) Brain storming
b) Role playing
c) Sensitivity training
d) Case study

Ans: - b

39. Under this method, a problem is referred to a group of trainees and they are asked to give
suggestions for solving the business problems.

a) Brain storming
b) Role playing
c) Sensitivity training
d) Case study

Ans: - a

40. The state Bank of India came into existence in _________

a) 1965
b) 1980
c) 1955
d) 1945

Ans: - c

41. Under this scheme, a customer is allowed to draw cheques even if there is no balance amount
standing to the credit of his account i.e permitting him to overdraw on his account.

a) Overdraft
b) Cash credit
c) Loans
d) Discounting of bills
Ans: - a

42. These banks have been set up to provide a long-term credit to farmers at reasonable rate of
interest.

a) Commercial banks
b) Saving banks
c) Land development banks
d) Cooperative banks

Ans: - c

43. These banks collect their capital by selling shares to the public and by accepting deposits from
their members and others.

a) Commercial banks
b) Saving banks
c) Land development banks
d) Cooperative banks

Ans: - d

44. The capital required by the business is divided into a large number of equal parts and each part is
considered as _______

a) A share
b) Working capital
c) Owned capital
d) Loan capital

Ans: -a

45. It remains invested in the business for a long period, i.e. ten years or more: -

a) Financial institution
b) Long term finance
c) Short term finance
d) Medium term finance

Ans: -b

46. A document or certificate issued by the company acknowledging loan and also gives an
undertaking to repay the specified borrowed sum along with interest to the debenture-holder on a
prescribed date.

a) Debenture
b) Share
c) Ploughing back profit
d) Working capital

Ans: -a

47. Those share which carry a preference both regarding dividend and the return of the capital.

a) Debenture
 b) Preference shares
c) Ordinary share
d) Owned capital

Ans: - b

48. It is a secured loan borrowed from a bank, insurance company or any other similar agencies-

a) Debenture
b) Trade credit
c) Mortgages
d) Shares

Ans: -c

49. It is a systematic procedure for determining the unit cost of output produced or service
rendered.

a) Financial accounting
b) Cost accounting
c) Management accounting
d) Accounting concept

Ans: -b

50. Revenue is generally recognised at the point of sale. Which concept is applied in this case?

a) Matching
b) Going concern
c) Revenue realisation
d) Money measurement

Ans: -c

51. The concept that business enterprise will not be sold or liquidated in the near future is known as-

a) Accounting period
b) Going concern
c) Cost
d) Money measurement

Ans:- b

52. The transaction which are not capable of being recorded in terms of money are not entered in
account books.

a) Accounting period
b) Going concern
c) Cost
d) Money measurement

Ans: - d

53. The convention requires that the same accounting methods should be used from one accounting
period to the next.
 a) Disclosure
b) Materiality
c) Consistency
d) conservatism

Ans: - c

54. According to this concept, business is treated as a unit or entity apart from its owners, creditors,
managers and others.

a) Dual aspect concept

b) Entity concept
c) Going concern concept
d) Matching concept

Ans: - b

55. A ledger is a book of: -

a) Original entry
b) Secondary entry
c) All cash transaction
d) Petty cash transaction

Ans: - b

56. Recording of transactions in the journal is called: -

a) Posting
b) Casting
c) Journalising
d) Tallying

Ans: - c

57. The process of recording entries in the ledger is called: -

a) Posting
b) Casting
c) Journalising
d) Tallying

Ans: - a

58. The preparation of trial balance helps in: -

a) Locating errors of complex omission

b) Locating errors of principle.
c) Locating errors of commission
d) None of these

Ans: -c

59. Errors of commission do not allow: -

a) Correct totalling of the balance sheet

 b) The trial balance to agree
c) Correct totalling of the trial balance
d) None of these

Ans: - b

60. Which of the following errors will not affect a trial balance?

a) Wrong balancing of an account

b) Wrong totalling of an account
c) Writing an amount in the wrong account but on the correct side.
d) None of these

Ans: - c

61.This type of error occurs when there is a mistake in allocating a particular receipt or expense to
capital or revenue account.

a) Errors of commission
b) Errors of omission
c) Errors of posting
d) Errors of principle

Ans: - d

62. When two or more errors are committed in such a way that they nullify the effect of each other
on the debit and credit side, are called ______________

a) Compensating errors
b) Errors of omission
c) Errors of posting
d) Errors of principle

Ans: - a

63. _____________ reveals the net profit earned or net loss suffered by a firm in course of its
business operations during the accounting period.

a) Financial statement
b) Profit and loss account
c) Balance sheet
d) Trial balance

Ans: - b

64. A statement of accounts prepared for the purpose of ascertaining the exact financial position of
the business on the last date of the financial year under review.

a) Financial statement
b) Profit and loss account
c) Balance sheet
d) Trial balance

Ans: - c
65. Those assets which are either in the form of cash or can be easily converted into cash within a
year.

a) Current assets
b) Fixed assets
c) Current liabilities
d) Long-term liabilities

Ans: - a

66. Those liabilities which mature for payment after a period of one year or more and do not require
the sale of any assets for their payment.

a) Current assets
b) Fixed assets
c) Current liabilities
d) Long-term liabilities

Ans: - d

67. ____________ is the excess of firm’s assets over its liabilities.

a) Investment
b) Capital
c) Loan
d) Drawings

Ans: - b

68. It is used to measure the ability of the firm to convert its current assets quickly into cash in order
to meet its current liabilities.

a) Current ratios
b) Quick ratios
c) Solvency
d) Activity ratios

Ans: - b

69. A document which sets out the responsibility of the persons engaged in budgetary control is
known as ____________

a) Budgetary control
b) Budget period
c) Budget manual
d) Master budget

Ans: -c

70. It forecasts as to how much the business can reasonably expect to sell to its customers, and at
what price during the budget period.

a) Sales budget
b) Production budget
c) Product cost budget
 d) Labour cost budget

Ans: - a

71. It represents the cash requirements of the business during the budget period.

a) Sales budget
b) Production budget
c) Cash budget
d) Labour cost budget

Ans: - c

72. When all the functional budgets are combined into one harmonious unit, it is called _______

a) Sales budget
b) Production budget
c) Cash budget
d) Master budget

Ans: -d

73. The debts which are irrecoverable are called __________

a) Bank credit
b) Balance sheet
c) Bad debts
d) Brokers

Ans: -c

74. These are intended to measure the efficiency with which the firm manages and utilizes its
assets.

a) Capital turnover ratios

b) Profitability ratios
c) Activity ratios
d) Capital turnover ratios

Ans: -c

75. In this book, transactions are recorded as and when they take place.

a) Ledger
b) Journal
c) Cash book
d) Trial balance

Ans: -b