a. c. d. Knowledge of customers€¦ · b. decreases working capital management efficiency c. d....
Transcript of a. c. d. Knowledge of customers€¦ · b. decreases working capital management efficiency c. d....
JNTU ONLINE EXAMINATIONS [Mid 2 - mefa]
1. Which of the following business organization has separate legal entity other than its owners? [01D01]
a.
b.
c.
d.
2.
3. Partnership business form is governed by the provision of [01D02]
a.
b.
c.
d.
Indian Companies Act 1872
Companies Act 1956
Indian Partnership Act 1932
COPRA
Sole proprietorship
Joint stock companies
Registered partnership
Unregistered partnership
8. What makes a business quite challenging? [01S02]
a.
b.
c.
d.
Profit http://jntuk.strikingsoon.com
Risk involved
Employees
Knowledge of customers
9. The simplest form of business organization is [01S03]
a.
b.
c.
d.
Sole proprietorship
Unregistered partnership
Registered Partnership
Cooperative societies
10. The written agreement among partners for coming together is called [01S04]
a. Memorandum of understanding
b.
c.
a.
b.
c.
d.
Sole proprietorship
Unregistered partnership
Registered partnership
Private limited company
5. Among the form of business the one which has least risk to owner is [01M02]
b.
c.
d.
Registered partnership
a. Sole proprietorship
Unregistered partnership
Joint Stock Companies
6. Which of the following is a specific feature unique to partnership form of business [01M03]
a.
b.
c.
Profit
Agreement
Business
d. Customers
7. Which of the following feature is NOT characteristic feature of business? [01S01]
a.
b.
c.
d.
Transfer of ownership
Quick decision making
Welfare of customers
Welfare of customers
a.
b.
c.
d.
a.
b.
c.
d.
2
5
a.
b.
c.
d.
a.
b.
c.
2
4. The degree of freedom and flexibility for decision making is large in case of [01M01] d.
10
20
Agent
10
20
11. The serious limitation of sole trader form is [01S05]
It is too simple
12. The maximum number of partners permitted in case of Banking business is [02D01]
13. A partner who gives an impression that he is partner of the firm and liable for the claim is called [02D02]
Active partner
Partner by Estoppel
14. The maximum number or partners in case of non banking business permitted is [02M01]
Partnership deed
Partnership affidavit
Partnership Covenant
Limited capital
Primitive form of organization
Lack of professionalism
Nominal partner
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15. A partner who neither contributes capital nor takes part in the affairs of business is called [02M02]
a.
b.
c.
d.
Sleeping partner http://jntuk.strikingsoon.com
Figurehead partner
Nominal partner
Inactive partner
b.
c.
d.
SEBI
Company Law Board
Ministry of Commerce, GOI
22. Indian Railways is an example of [03D01]
a.
b.
Public Corporation
Government Company
Departmental Undertaking
Non profit society
16. An unregistered partnership firm cannot [02M03]
a.
b.
c.
d.
file suit in support of its claim
enter into 'future' contracts
raise loans from its creditors
admit sleeping partners
c.
d.
a.
17. Whenever any of the partners die [02S01]
a.
b.
c.
d.
the legal heir of the deceased becomes partner automatically and the partnership continues.
the partnership is dissolved
the partnership continues with others sharing the obligations and rights in proportion to their shares.
The partnership stands suspended
b.
c.
d.
18. A partner who contributes capital but does not take part in the affairs of the partnership is called [02S02]
a.
b.
c.
d.
Nominal partner
Inactive partner
Contributing partner
Sleeping partner
19. The procedure for dissolution of a partnership firm is specified in document called [02S03]
a.
b.
c.
d.
Termination procedure
Dissolution document
Partnership deed
Closure memo.
20. The partners of partnership firm have obligations to liabilities to third parties [02S04]
a.
b.
c.
d.
jointly and severally with unlimited liabilities
jointly with limited liabilities
severally with unlimited liabilities
jointly and severally with limited liabilities
21. The competent authority to issue permission to release prospectus is [02S05]
a. RBI
a.
b.
c.
d.
a.
b.
c.
d.
a.
b.
c.
d.
a.
b.
c.
10
20
50
Unlimited
Prospectus
51%
67%
100%
75%
Prospectus
24. Maximum number of members in a private limited company is [03M01]
25. The document that deals with rules and regulation governing the internal conduct of the company is called [03M02]
26. A government company is one in which ---- percent or more of the share is held by state or central government [03M03]
27. The charter of the company is called [03S01]
Memorandum of Association
14
8
6
12
Articles of Association
Memorandum of Association
Standing orders
Articles of Association
23. The number of clauses describing the contents of memorandum of Association are [03D02]
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28. The minimum number of members required to form public limited company is [03S02]
a.
b.
c.
d.
2
7
50
10
b.
c.
d.
Public Corporation
Government Company
Central Departmental undertaking
35. The business organization where the right to transfer the share is restricted is called [04M02]
a.
b.
c.
d.
Public limited company
Cooperative society
Private limited company
Multinational company
29. The minimum number of members required to form private limited company is [03S03]
a.
b.
c.
d.
2
7
50
10 a.
30. Prospectus is issued by [03S04]
a.
b.
c.
d.
Public limited company
Private limited company
Cooperative society
Public limited company, Private limited company and Cooperative society
b.
c.
31. National Thermal Power Corporation (NTPC) is an example of [03S05]
a.
b.
c.
Public Corporation
Government Company
Departmental Undertaking
d. public Limited Company
32. A company, which controls the composition of board of directors of another company, is called [04D01]
a.
b.
c.
d.
Holding Company
Subsidiary company
Unlimited Company
Limited Company
33. The Indian partnership Act was enacted in [04D02]
a.
b.
c.
d.
1932
1942
1952
1962 http://jntuk.strikingsoon.com
34. Among the public enterprises the degree of autonomy is highest in [04M01]
a. Departmental undertaking
a.
b.
c.
d.
a.
b.
c.
d.
a.
b.
c.
d.
a.
b.
c.
d.
37. Business entity which comes into existence by statue of parliament or state legislature is called [04S01]
Public limited company
38. Government business entity registered under Companies Act 1956 is called [04S02]
Department undertaking
Public corporation
Public limited company
Government Company
39. A company, which controls the composition of board of directors of another company, is called [04S03]
Holding Company
Subsidiary company
Unlimited Company
Limited Company
40. The voting rights in a private or public limited company is based [04S04]
on equality principle
the proportion to the shares held
on the social standing of share holder
transferability of shares
unlimited liability
common seal
winding up
Public corporation
Government Company
Departmental Undertaking
36. Which of the following is not a feature of the company? [04M03]
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41. In cooperative society the business is governed on the principle of [04S05]
a.
b.
c.
d.
one man one vote
proportion of share held
standing of member
contribution of member.
c.
d.
Trust
Standing Order
48. One of the examples of successful product produced by cooperative society is [05S02]
a.
b.
c.
d.
Nirma
Baidyanath Chavanprash
Amul Butter
Milkmaid
42. Cooperative Societies Act was enacted in [05D01]
a.
b.
c.
d.
1932
1904
1914
1945 a.
43. Which of the following can be considered as the most disadvantage of departmental undertaking? [05D02]
a.
b.
c.
d.
Shares not traded in public
Shares not freely transferable
Red tapism and bureaucracy
Big size
b.
c.
d.
44. The minimum paid up capital to form a public company is [05M01]
a.
b.
c.
d.
Rs. 8,00,000
Rs. 5,00,000
Rs. 4,00,000
Rs.10,00,000
45. Which of the shares can be freely transferred? [05M02]
a.
b.
c.
d.
Departmental undertaking
Cooperative society
Private limited company
Public limited company
46. A company whose controlling shares are held by another is called [05M03]
a.
b.
c.
d.
Parent company
Holding company
Subsidiary company
Supporting company
47. Partnership is created by [05S01]
a.
b.
Contract
Solicitation
a.
b.
c.
d.
a.
b.
c.
d.
a.
b.
c.
d.
a.
b.
c.
d.
50. Which of the organizations is formed for the stated objective of providing employment besides other objectives? [05S04]
Public enterprises
Cooperative Societies
51. When total of current liabilities are more than current assets it is a situation where we have necessarily [06D01]
negative working capital
breakdown of business
liquidation of business
long operating cycle
52. Higher the length of operating cycle, [06D02]
more robust is the operation
less efficient is the operation
more efficient is the operation
less requirement is the working capital
53. In Economics capital is considered as [06M01]
one of the factors of production
source of economic problem
one of the factors of consumption
one of the factors of distribution
Departmental Undertaking
Private limited company
Cooperative society
Public limited company
Public limited company
Private Limited company
49. Whose shares can be listed in Stock Exchange? [05S03]
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54. The total of stocks of raw materials , work-in- progress, finished goods, stores and spare parts, monetary assets, tender deposits, deposits with customs, excise and port authorities including funds provided by trade creditors is known as [06M02]
a.
b.
c.
d.
Capital
Gross working capital
Net working capital
Business assets
60. Slow moving finished goods and raw material inventory causes, [06S05]
a.
b.
c.
d.
decrease in length of operating cycle
increase in length of operating cycle
decrease in working capital
increase in efficiency of operation
61. Debentures, equity and term loans are sources of funds for [07D01]
a.
b.
c.
fixed and long term assets
working capital
current assets
55. The differences between total current assets and current liabilities is [06M03]
a.
b.
c.
d.
Net working capital
Gross working capital
Fixed working capital
Trading deficit
d.
62. Cash credit, bill discounting and sundry creditors are sources of funds for [07D02]
56. The difference between total of assets and liabilities of a business enterprise is [06S01]
a.
b.
c.
d.
profit
loss
capital
liquidity
57. The problem for growth of underdeveloped countries is essentially the problem of [06S02]
a.
b.
c.
d.
lack of capital
lack of labour
lack of land
lack of will
a.
b.
58. That portion of the capital which is invested in acquiring long term assets is called [06S03]
Durable capital
Fixed capital
c. working capital
Reserves d.
59. The portion of capital needed for running the business on day to day basis is called [06S04]
a.
b.
c.
d.
Liquid capital
Liquidity
Working capital
Quick assets
d.
a.
b.
c.
d.
a.
b.
c.
d.
a.
b.
c.
d.
a.
b.
c.
a.
63. More trade creditors with increase in credit period would, [07M01]
decrease working capital requirement
increase the working capital requirement
increases length of operation cycle
decreases working capital management efficiency
64. Goodwill and patents are example of [07M02]
current assets
working capital
intangible long term assets
tangible long term liabilities
65. Tandon and Chore committee recommendation provide guidelines on bank credit for [07M03]
long term financing
working capital financing
customer financing
fixed asset financing
66. Where product obsolescence and technology obsolescence are fast the most useful criteria for capital budgeting is [07M04]
A. pay back period
short term investments
fixed capital
long term assets
current assets
investment in machinery
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b.
c.
d.
accounting rate of return
NPV
IRR
73. Where does one buy and sell the shares of the existing companies? [08M01]
a.
b.
Money market
Capital market
Secondary market
Bond market
67. Shorter collection period would, [07S01]
a.
b.
c.
d.
increase the working capital requirement
reduce the working capital requirement
increases length of operating cycle
increases sales
c.
d.
74. Which of the following is not a current asset? [08M02]
a. tender deposit
Cash deposited with customs for duty
prepaid expenses c.
a.
b.
c.
d.
working capital
capital
long term liabilities
current liabilities
d.
75. When the rate of return is more than the cost of capital then the project should be [08M03]
69. The most liquid form of current assets is [07S03]
a.
b.
c.
d.
marketable inventory
cash and bank balance
finished goods
tender deposit
70. Equity and preference share capital major sources of financing [07S04]
a.
b.
c.
d.
fixed capital
working capital
current assets
day to day operational need
71. The compound rate of return earned on initial investment for the life of the project is measured by [08D01]
a.
b.
c.
pay back period method
profitability index method
NPV
d. IRR
72. Discounting factor in NPV must be [08D02]
a.
b.
c.
d.
based on cost of capital
10%
decided only by Finance Manager
in the range of 8% to 12%
d.
a.
b.
c.
d.
a.
b.
c.
d.
a.
b.
c.
d.
a.
b.
b. accepted
c.
Term loan
a.
76. Which of the following is not a form of long- term finance? [08S01]
77. Which of the following is a current liability? [08S02]
Bills receivables
Bills payable
prepaid expenses
share capital
78. The flow of money in the business is called [08S03]
wealth cycle
business cycle
economic cycle
working capital cycle
79. Capital budgeting is done for [08S04]
working capital
project financing and long term capital planning
rejected
kept in abeyance
kept out of consideration
Preference shares
Debentures
Cash credit
68. Debentures, term loans and mortgages are components of [07S02]
b.
Advance paid by customer along with order
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d. estimating the profit 86. Present value of revenue stream divided by investment is [09M04]
a.
b.
c.
d.
NPV
IRR
Profitability Index
Cost of capital
80. The diminution or reduction in the value of the asset due to wear and tear is called [08S05]
a.
b.
c.
d.
depreciation
dissipation http://jntuk.strikingsoon.com
liquidation
attrition 87. The process of evaluating the relative worth of long term investment proposals is called [09S01]
a.
b.
c.
discounting
capital budgeting
depreciating
81. In order to make capital budgeting a purposeful exercise the most important thing is [09D01]
a.
b.
c.
d.
realistic estimation of revenue
calculation of payback period
calculation of NPV
calculation of profitability Index
d.
88. The period within which the original investment is recovered is called [09S02]
b.
c.
d.
Payback period
Earning per share
Profitability Index
83. The difference between the present value of future cash inflows to the original investment is [09M01]
a.
b.
c.
d.
NPV
profitability index
discounted cash value
cost of capital
84. Internal rate of return (IRR) is the rate at which the difference between the present value of cash inflows and the original cost is [09M02]
a.
b.
c.
equal to zero
equal to one
greater than zero
greater than one. d.
85. Average profit after taxes over the life of the project divided by average book investment during the life of the project after depreciation is [09M03]
a.
b.
c.
d.
accounting rate of return
Payback period
Earning per share
Profitability Index
d.
a.
b.
c.
d.
a.
b.
c.
d.
a.
b.
c.
d.
a. accounting rate of return
b.
c.
NPV
IRR
ARR
82. Average profit after taxes over the life of the project divided by average book investment during the life of the project after depreciation is [09D02]
a.
89. For the profitable projects the profitability index should be [09S03]
greater than zero
greater than one
equal to one
less than one
90. Which of the following method does not use the concept of Present value of future revenue? [09S04]
91. Which of the following techniques of capital budgeting uses present value of future earnings? [09S05]
92. Liquidity criteria in investment appraisal is emphasized in [10D01]
valuation of firm
Pay back period
Operating cycle length
turnover period
collection period
Accounting rate of return
Profitability Index
Payback period
Profitability index
Decision tree
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b.
c.
d.
NPV
Payback period method
profitability Index
99. Capital budgeting decision are crucial because they are [10S02]
a.
b.
uncommon
redeemable
immeasurable
irreversible
93. The post pay-back cash flows are [10D02]
a.
b.
c.
d.
ignored in pay back period calculation
included in pay back calculation
given weighted preference in calculation
is subtracted from pre pay back period cash inflows
c.
d.
100.Replacement of worn out machine or equipment is essentially [10S03]
a. recurring expenditure decision
working capital decision
capital budgeting decision c.
a.
b.
c.
d.
ARR
NPV
IRR
Profitability index
d.
101.
a.
95. Projects that cannot be taken up simultaneously with the other are called [10M02]
a.
b.
c.
d.
mutually exclusive
complementary
supplementary
derived projects
96. Which of the following methods is used in capital budgeting decisions in cases where the book value less scrap is equally adjusted over the life of the asset? [10M03]
a.
b.
c.
d.
Written down value method
Straight line method
Replenishment method
annuity method
97. Which of the following is determined on after tax basis for capital budgeting? [10M04]
a. cash inflows
b.
c.
cash outflows
depreciation
scrap value of asset d.
98. The present value of future cash inflows over and above cost of investment is [10S01]
a.
b.
c.
d.
Profit
NPV
Cost of capital 105.All transaction recorded according to records do not necessarily mean cash flow. All transactions Discounting factor
d.
a.
b.
c.
d.
a.
b.
c.
d.
a.
b.
c.
d.
b.
c.
multiplied
102.Government transacts the payments into the government's treasury are mainly dealt on [11D01]
Single entry book
Double entry book
Real accounts
nominal accounts
103.Capital i.e. owner's share of assets of the firm is always what is left out of assets after paying outsiders and a transaction must affect asset or liability or capital is based on [11D02]
Dual aspect concept
Money measurement concept
Realisation concept
Business entity concept
104.The concept that only those transactions that are expressed in monetary terms are recorded is called [11M01]
Cost concept
Money measurement concept
Realisation concept
conservatism
compounded annually
94. Which of the following is not modern method of investment appraisal? [10M01]
b.
routine replacement maintenance decision
Discounting rates are [10S04]
calculated on simple rate basis annually
divided to arrive at the present value
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event though not yet settled in cash must be taken into account is [11M02]
a.
b.
c.
d.
Going concern concept
Accrual concept
Cost concept
Business entity concept
representation of firm's financial performance is called [11S06]
a.
b.
c.
d.
Reliability
Relevance
Consistency
comparability
106.The concept that the accountant treats the business as distinct from person who owns it is called [11S01]
a.
b.
c.
d.
Going concern concept
Dual aspect concept
Business entity concept
Consistency
112.An accounting principle that requires recognition of revenue at the time of it is earned called [12D01]
a.
b.
c.
Prudence principle
Realisation principle
Matching principle
Cost principle d.
107.The concept that for every credit there is debit is borne out of [11S02]
a.
b.
c.
d.
Cost concept http://jntuk.strikingsoon.com
Money measurement concept
Double entry system
consistency
108.The assumption that the business will exist for a long time and transaction recorded on that basis is [11S03]
a.
b.
c.
d.
Going concern concept
Business entity concept
Accrual concept
Cost concept
109.The accounting is based on historical cost and not market value is [11S04]
b.
c.
a. Consistency concept
Conservatism concept
Cost concept
d. Money measurement concept
At any time in business [11S05] 110.
a.
b.
c.
d.
Assets = Liabilities + Capital
Capital - Liabilities = Assets
Asset + Capital = Liabilities
Assets + Liabilities = Capital
b.
c.
d.
a.
b.
c.
d.
a.
b.
c.
d.
116.
a.
b.
c. 111.The concept that the accounting describes information that is verifiable and faithful
a. profit
revenue
gain
equity
Accrual
Provision
Reserve
Deferral
posting
tallying
a ledger a/c
Journal
113.The residual interest in the assets of the enterprise after deducting all its liabilities is called [12D02]
114.The recognition of expense that has not been paid or a revenue that has not been received is called [12M01]
115.The sequence of accounting processes beginning with the analysis and the journalizing of transaction and ending with the post closing of trial balance is called [12M02]
accounting cycle
adjusting entries
Cash Book is [12M03]
served the dual purpose of Journal and ledger account
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117.
a.
b.
c.
d.
The two parts of owner's equity are [12S01]
Assets and Liabilities
Net income and Common Stock
Contributed capital and retained earnings
Revenue and expenses
d.
124.
a.
b.
c.
d.
Profit & Loss A/c and Balance Sheet
Contra entries are found only in [13M01]
personal accounts
Cost accounts
Cash book
Balance sheet 118.Which financial statement is based on the accounting equation? [12S02]
a.
b.
c.
d.
Income statement
the Balance sheet
the statement of cash flows
Statement of changes in shareholder's equity
125.The source of enterprise resources obtained from non-owners is [13M02]
a.
b.
c.
liabilities
assets
119.A chronological record of transaction entered into by a business is called [12S03]
a.
b.
c.
d.
Account
ledger
Journal
posting
d.
126.
a.
b.
c.
d.
Real accounts
Nominal accounts
Personal accounts
Trading a/c
120.Debit what comes in and credit what goes out is the rule for [12S04]
121.Debit all expenses and losses credit all gains and profits is the rule for [12S05]
d.
a.
b.
c.
d.
128.
a.
b.
c.
d.
a.
b.
c.
d.
b.
c.
d.
Nominal accounts
personal accounts
Furniture a/c
a. Real accounts
122.Which of the following is an essential characteristic of an asset? [13D01]
a. An asset is obtained at a cost
b.
c.
d.
123.
a.
b.
c.
An asset provides future benefit
An asset is tangible
Asset is immeasurable
Financial statements are [13D02]
Cash a/c and creditors ledger
Real and Nominal A/cs
Personal and Impersonal A/cs
b.
c.
a.
127.Debit the receiver and credit the giver is the rule for [13S01]
real accounts
nominal accounts
personal accounts
stationary account
Impersonal accounts are [13S02]
Profit and Loss A/cs
Trading A/cs
Real accounts and Nominal accounts
Balance Sheet
129.The itemized list of all ledger balances, cash balances at the close of the accounting year is used to prepare [13S03]
Trial Balance
Trading A/c
Profit and Loss A/c
Balance sheet
130.The statement of the sources and the ways in which these resources are invested at a specified date is shown in [13S04] a. Profit and Loss A/c
capital
profit
Real account
Nominal account
Personal account
Trading account
Cash in hand is classified into [13M03]
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b.
c.
d.
Trading A/c
Balance Sheet
Trial balance
c.
d.
Revenue expenditure
Cost of goods
131.The expenses yet to be paid are called [13S05]
a.
b.
c.
d.
accrued expenses
Normal expenses
Arrear expenses
Accumulated expenses
137.Amount that are received in the ordinary course of business is called [14S01]
a.
b.
c.
d.
net profit
revenue receipts
capital receipts
gross profit
a.
a.
b.
c.
d.
monetary current asset
non monetary current asset
fixed asset
long term asset
b.
c.
d.
a.
b.
c.
d.
Capital expenditure
Revenue expenditure
Deferred revenue expenditure
preliminary expenses
a.
b.
c.
d.
Posting to wrong side of a/c
Compensating error
134.Which of the following errors are not disclosed in trial balance? [14M01]
Error in totaling account wrongly
135.Which of the following error can be disclosed? [14M02]
a. Errors of principle
Compensating errors
Posting to wrong side of account
Errors of complete omission of transaction
Posting in one a/c from the journal omitting to post another a/c
b.
c.
d.
136.Expenditure incurred to maintain the earning capacity of the business in the normal course for the current period is [14M03]
a.
b.
Deferred revenue expenditure
Capital expenditurec. Current cost and realizable value
a.
b.
c.
d.
a.
b.
c.
d.
a.
b.
c.
d.
a.
b. c. Current Cost & Realizable Value
133.That portion of expenditure that remains uncharged to Profit & Loss a/c for a given period is [14D02] P & L a/c
Bank a/c
139.Net profit or loss for the end of a given accounting period is shown in [14S03]
140.When the company pays dividend to shareholders which of the following is affected? [14S04]
Income statement
Balance sheet
Trading a/c
Profit and Loss a/c
141.What capital maintenance concept is applied to report net profit? [14S05]
Physical capital
Financial capital measured in nominal monetary units
Financial capital in units of constant purchasing power
intangible capital
142.Which of the following measurement bases are consistent with the fair value concept? [15D01]
Historical cost and present value
Historical cost, current cost and realizable value
Profit and Loss A/cs
Capital A/c
Trading A/c
Cash a/c
Trading a/c
Cash a/c http://jntuk.Strikingsoon.com
132.Receivable that is amount due from a customer is [14D01]
138.The gross profit or loss for the end of a given accounting period is shown in [14S02]
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d. Historical cost and realizable value b.
c.
d.
bad debt a/c
personal a/c
sales a/c 143.Withdrawal of goods from business by the proprietor should be credited to [15D02]
a.
b.
c.
d.
144.
a.
b.
c.
d.
Proprietor account
Cash account
Bank account
Goods account
Patents account is a [15M01]
Real a/c
150.Which of the following is called return inwards? [15S04]
a.
b.
c.
d.
purchases
purchase return
sales return
free samples sent by suppliers
Nominal a/c
Fictitious a/c a.
b.
145.The accounting information as provided in company annual report is meant for [15M02]
a.
b.
c.
d.
employees
Accounting professionals
Shareholders
Board of Directors
c.
146.The ascertaining and controlling of the cost of a product or services is principally achieved through [15M03]
a.
b.
c.
d.
147.
a.
b.
c.
d.
Financial accounting
Cost accounting
Zero Based budgeting
Management Accounting
Air conditioning the building is [15S01]
capital expenditure
capital receipt
revenue expenditure
deferred revenue expenditure
148.Salary paid in cash to Mr. Joseph, General Manager Works is credited to [15S02]
a.
b.
c.
d.
GM's a/c
Mr.Joseph's a/c
Salary a/c
Cash a/c
149.When debt is declared bad, which of the following account is debited? [15S03]
a. debtor's a/c
a.
b.
c.
d.
a.
b.
c.
d.
a.
b.
c.
d.
a.
b.
liquidity
solvency
leverage
quick ratio
quick ratio
d.
152.A company's return on investment indicates its [16D01]
153.The standard value of 1:1 is specified for [16M01]
current ratio
154.The overall ability of the business to meet its financial commitments in the long run with equity as percent of total liability is indicated by [16M02]
average collection period
solvency ratio
155.The proportion of owners fund to the total fund deployed in the business is indicated by [16M03]
solvency ratio
debt equity ratio
Sales book
Cash book
Purchase book
Ledger
profitability
debtors turnover ratio
inventory turn over ratio
profitability ratio
Personal a/c 151.Name of the main book of accounts in which all accounts are kept is [15S05]
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d.
156.
a.
b.
c.
d.
capital gearing ratio
Current ratio is basically [16S01]
liquidity ratio
activity ratio
solvency ratio
profitability ratio
b.
c.
d.
gross profit ratio
ROI
assets profitability
163.Net profit after taxes divided by number of shares outstanding gives [17D02]
a.
b.
net profit ratio
ROI
EPS
solvency ratio
157.The proportion of current asset to cover current liability is calculated using [16S02]
a.
b.
c.
d.
quick ratio
c.
d.
current ratio
activity ratio a.
b.
158.When closing stock and prepaid expenses are subtracted from current assets we get [16S03]
a.
b.
c.
d.
159.
a.
b.
c.
d.
current liability
quick assets
net working capital
sundry debtors
c.
Capital gearing ratio is [16S04]
debt equity ratio
earning per share
inventory turn over ratio
return on investment
a.
b.
c.
d.
working capital cycle length
160.The number of times the working capital has circulated itself is given by [16S05]
inventory turn over ratio
working capital turn over ratio
fixed asset turn over ratio
161.The velocity of the fixed assets is measured by [16S06]
a.
b.
c.
d.
quick ratio
net profitability ratio
return on investment
fixed asset turn over ratio
162.The ratio of operating profit by capital employed is given by [17D01]
a. net profit ratio 168.The number of days in a year divided by collection period in days is [17S01]
a.
b.
c.
d.
a.
b.
c.
d.
2
5
a.
b.
c.
d.
ROI
2.5
1.5
d.
165.The surplus of sales over the cost of production ( in manufacturing) and service charges ( in servicing industries) is measured by [17M02]
166.Current assets of XYZ company are Rs. 1,20,000 and total assets are Rs. 6,00,000. Current liabilities are Rs. 80,000 and total liabilities are Rs. 3,00,000. What is the current ratio? [17M03]
167.The set of ratios that measure the company's ability to pay its current bills and operating cost are known by [17M04]
solvency ratios
liquidity ratios
profitability ratios
market indicators
proprietary ratio
interest coverage
inventory turn over ratio
acid test ratio
gross profit ratio
assets profitability
solvency ratio
acid test ratio 164.The efficiency of inventory management is measured by [17M01]
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a.
b.
c.
d.
inventory turn over ratio
fixed asset turn over ratio
working capital turn over ratio
debtor turn over ratio
survive over a long period of time is known as [18M01]
a.
b.
c.
liquidity ratios
profitability ratios
market indicators
solvency ratios 169.The efficiency of collection is measured by [17S02]
a.
b.
c.
d.
collection period
inventory turnover ratio
gearing ratio
quick ratio
d.
175.The set of ratios that measure the operating or income performance of a company is know as [18M02]
a.
b.
profitability ratios
liquidity ratios
170.Suppose a firm had an inventory turn over ratio of 20. Taking the year to consist of 360 days, how many days on an average does an item remain in inventory? [17S03]
a.
b.
c.
d.
15 days
18 days
20 days
12 days
c.
d.
171.Jain and sons have their sales Rs. 20,00,000 cost of sold Rs.12,00,000 and average inventory Rs. 4,00,000. What was the inventory turnover ratio for the period? [17S04]
a.
b.
c.
d.
3
4
5
0.33
172.A high inventory turn over ratio indicates that [18D01]
b.
c.
d.
a. inventory is selling rapidly
inventory is not moving quickly
the company is ordering too much inventory
the company is selling inventory at high price
173.Which ratio is meaningless in a start up company that has not yet earned profit? [18D02]
a.
b.
c.
d.
P/E ratio
Gross profit ratio
inventory turn over ratio
Current ratio
174.The set of ratios that measure the company's ability to meet its long- term obligation and to
d. Rs. 47.50 per share
b.
c.
d.
a.
b.
c.
d.
a.
b.
c.
d.
a.
b.
c.
a.
2:1
1:1
1:2
0.5:2
176.The set of ratios that relate the current market price of the companys stock to earning is [18S01]
profitability ratios
solvency ratios
177.The level of different activities in business is measured using [18S02]
profitability ratios
turnover ratios
market indicators
solvency ratios
178.The general norm for current ratio is [18S03]
179.Reddy & Reddy C0 reported a P/E ratio of 50 on the last day of the financial year. If the company reported earning of Rs. 2.50 per share, what was the price at which share of the company being traded at that time? [18S04]
Rs. 20 per share
Rs. 125 per share
Rs. 50 per share
solvency ratios
market indicators
activity ratios
market indicators
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180.On Mar 31, Naidu caterers reported total current assets of Rs. 45,000 total assets of Rs. 2,00,000 total current liabilities of Rs. 42,000 and total liabilities of Rs.80,000. How much net working capital did Naidu caterers have at that time? [18S05]
a.
b.
c.
d.
Rs. 87,000
Rs.2,00,000
Rs.3000
Rs. 1,23,000
d. Overhead ratio
186.If the current market price of share whose face value at Rs. 10 is Rs.150, and if the company declares dividend of 45% then the dividend yield is [19M03]
a.
b.
c.
d.
3 per annum
45 per annum
30 per annum
15 per annum
a.
b.
c.
d.
the return on equity is 1
the debt to equity ratio is 1
the return on assets ratio is 0.5
the firm has too much debt
a.
b.
c.
a.
b.
c.
d.
ROI
ROCE
ROE
EPS
183.The net profits available to equity shareholders to the amount invested by them is [19D02]
a.
b.
c.
d.
ROI http://jntuk.Strikingsoon.com ROCE
ROE
EPS
184.Financial institution insist on minimum debt to equity ratio of [19M01]
a. 2:1 http://jntuk.Strikingsoon.com
1:2 b.
c. 1.5:2
d. 2: 0.5
185.The ratio between cost of goods sold plus operating expenses and net sales is known as [19M02]
a.
b.
c.
Gross profit ratio
Net profit ratio
Operating ratio
a.
b.
c.
d.
a.
b.
c.
d.
a.
b.
c.
d.
191.
a.
182.Adjusted net profits by capital employed gives [19D01]
b. Solvency ratio
. 92%
450
3000
150
2000
EPS
P/E ratio
188.The price/earning ratio of a company is 30. The company earned Rs. 15 per share for the year ended. As on that what was the price of share in rupees? [19S02]
189.The ratio of nominal or face value of the share by market price of the share expressed as percent of dividend per annum is [19S03]
190.The ratio between net profit before interest and taxes to fixed interest charges is known as [19S04]
Debt equity ratio
Net profit ratio
Gross profit ratio
Interest coverage ratio
Dividend yield is basically [19S05]
Profitability ratio
8
Rs. 4,00,000
Rs.46,00,000
Dividend yield
earning power
181.If a firm has Rs. 1,00,000 debt and Rs. 1,00,000 equity then [18S06]
187.If operating ratio of a company is 92% with a sale of Rs.50,00,000 the profitability per cent ratio is [19S01]
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c.
d.
Activity ratio
Liquidity ratio
198.Inefficient collection of debtors is revealed by [20S02]
a. Average payment period
Debtors turnover ratio
Debt to equity ratio
Debt coverage ratio
Liquidity crisis is revealed by [20S03]
interest coverage ratio net profit ratio
current ratio and quick ratio
solvency ratio
192.Low capacity utilization is revealed by [20D01]
a.
b.
c.
d.
quick ratio
fixed asset turn over ratio
debt equity ratio
collection period
b.
c.
d.
199.
a. b.
c.
d.
a.
b.
c.
d.
194.
a.
b.
c.
d.
Average payment period
Creditors turnover ratio
Debt coverage ratio
Debt equity ratio
Debt equity ratio is [20M01]
Liquidity ratio
Solvency ratio
Profitability ratio
Activity ratio
200.Falling demand for the product in the marke is revealed by [20S04]
a. Gross profit ratio
Acid test ratio
201.
195.Turn over ratio helps management in [20M02]
a.
b.
c.
d.
managing resources
managing debt http://jntuk.Strikingsoon.com
evaluating performance
a.
b.
c.
d.
197.Ratio of net sales to net working capital is [20S01]
a.
b.
c.
d.
Working capital turnover ratio
Profitability ratio
Liquidity ratio
Operating ratio
196.Borrowing for short term and investing in long- term assets is revealed by [20M03]
Current ratio and Quick ratio
quick ratio and Collection period
Current ratio and Fixed Asset ratio
Debt Equity ratio and Turnover ratio
managing profit proceeds
c.
d.
a.
b.
c.
d.
b.
Current ratio
Finished goods turnover ratio
current ratio
debt / equity ratio
net profit ratio
gross profit ratio
193.Inability to pay dues to financial institution is revealed by [20D02]
Long term solvency is indicated by [20S05]
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