CA CPT

Practice Series-3 / June 2011

Note:
This Practice Series-3 covers 200 questions in all the four subjects. Answer e!s are "rovi#e# at the en#.

Section-A : Accounts Q1. The commission received from consignor will be transferred to: (a) Balance Sheet (b) General trading account (c) General Profit and loss account (d) ll of the above Q!. Goods sent to consignment at cost " ##1$# %. The &ercentage of loading on invoice &rice will be: (a) !'% (b) ##1$# % (c) !(% (d) )one P sent out !*((( bo+es costing ,s.-(( each to . at cost "!'%.1$1(th of the goods were lost in transit.!$#rd of the bo+es were received and sold. The amount of sale value will be: (a) ,s./*((*((( (b) ,s./*'(*((( (c) ,s./*!'*((( (d) ,s./*1(*((( ,am is admitted in a firm for 1$-th share in the &rofits for which he brings ,s.#((( for goodwill. 0t will be ta1en awa2 b2 the old &artners in (a) 3a&ital ,atio (b) )ew Profit sharing ratio (c) Sacrificing ,atio (d) 45ual Goodwill raised b2 the &artners at the time of admission of a &artner will be written off in: (a) 6ld &rofit sharing ,atio (b) )ew Profit Sharing ,atio (c) Sacrificing ,atio (d) 45uall2 Partner7s current $c is o&ened in case of : (a) 8luctuating 3a&ital (b) 8i+ed 3a&ital (c) Both a) and b) (d) )one 0f vendors are issued full2 &aid shares of ,s.1*1(*((( in consideration of assets ac5uired at ,s.1*((*(((: the balance of ,s.1(*((( will be debited to: (a) 3a&ital reserve account (b) Goodwill account (c) ;endors account (d) Profit and loss account

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4+cess mone2 received on a&&lication: is to be ad=usted against share allotment mone2. >>>>>>>> account will be credited with the amount of e+cess a&&lication mone2 received. (a) Share ca&ital (b) Share a&&lication (c) Share allotment (d) Share first call uthori@ed share ca&ital is: (a) The share ca&ital subscribed b2 the &ublic (b) The share ca&ital issued b2 the com&an2 (c) The ca&ital with which the com&an2 is registered and its amount is mentioned in the 3a&ital 3lause7 of the Aemorandum of ssociation (d) )one of the above Pro rata allotment is done in case of: (a) Bnder subscri&tion (b) 6ver subscri&tion (c) 8ull subscri&tion (d) )one of the above The areas wherein different accounting &olicies can be ado&ted are (a) ;aluation of 8i+ed ssets. (b) Providing de&reciation. (c) ;aluation of 8inished goods. (d) ll of the above. Crawing of cash b2 a &ro&rietor results in (a) 0ntroduction of 3a&ital (b) Dithdrawal of 3a&ital (c) 0ncome (d) 4+&ense Dhat is the correct statement in conte+t to ccounting StandardsE (a) ccounting Standards &rovides information to the users as to the basis on which the accounts have been &re&ared. (b) The2 la2 down the norms of accounting &olicies and &ractices b2 wa2 of guidelines. (c) ccounting Standards s&ecifies the generall2 acce&ted accounting &rinci&les. (d) ll of the above Fiabilit2 is an2thing: (a) Dhich the debtors owe to creditors. (b) Dhich an entit2 holds. (c) Dhich an entit2 owes to outsiders. (d) Dhich the outsiders owe to entit2. Dhich of the following is the ob=ective of &re&aring trial balanceE (a) 4+amining the arithmetical accurac2 of boo1s of accounts. (b) 0t hel&s in &re&aration of final accounts of a firm. (c) 0t serves as the summar2 of all the ledger accounts. (d) ll of the above. 0f an inflow of economic benefits is e+&ected then a contingent asset is disclosed: (a) 0n the balance sheet. (b) 0n the cash flow statement. (c) 0n the re&ort of the board of directors. (d) )one of the above.
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Dhich one of the under given is a normal business e+&enditureE (a) 3om&ensation &aid for breach of a contract of su&&l2 of goods. (b) Foss of stoc1 b2 theft. (c) 0nterest on borrowing during the &eriod of construction of wor1s. (d) Foss due to embe@@lement b2 the manager. Cebit Balance as &er cash boo1 of +2@ enter&rise as on #1.(#.!((< is ,s. 1*/((.che5ues de&osited but not cleared amounts to ,s. 1(( and che5ues issued but not &resented of ,s. '(. The ban1 allowed interest amounting ,s. 1'( and collected dividend ,s.1'( on behalf of +2@ enter&rise. Balance as &er &ass boo1 should be: (a) 1*?(( (b) !*1'( (c) 1*<'( (d) 1*?'( Dhen a favourable balance as &er &ass boo1 is the starting &oint* che5ues de&osited but not cleared will be: (a) dded (b) Subtracted (c) )either of the two (d) )ot re5uired to be ad=usted Dhen a favorable balance as &er &ass boo1 is the starting &oint* e+&enses directl2 &aid b2 ban1 will be: (a) dded (b) Subtracted (c) )either of the two (d) )ot re5uired to be ad=usted scertainment of value of stoc1 from accounting records is 1nown as (a) Per&etual inventor2 control s2stem (b) Periodic inventor2 control (c) ,igid inventor2 control (d) Self assessment s2stem 8rom the following details what is the value of &urchasesE 6&ening stoc1 ,s. !(*(((* Sales ,s. 1'(*(((* Gross &rofit margin !(% of sales* closing stoc1 ,s. #(*((( (a) ,s. 1#(*((( (b) ,s. 1!(*((( (c) ,s. 11(*((( (d) ,s. 1*((*((( n overvaluation of current 2earGs o&ening inventor2 will (a) 3ause current 2earGs net income to be overHstated (b) 3ause &revious 2earGs net income to be understated (c) 3ause &revious 2ears income overstated (d) Ias no affect 3harging for the &ro&ortionate of an intangible asset over a &eriod is termed as: (a) Ce&reciation (b) Ciminution (c) morti@ation (d) 4+&iration Service hours method of &roviding de&reciation (straight line method) is useful* when: (a) 6ut&ut can be effectivel2 measured (b) Bse of an asset can be measured 0n terms of time (c) Btilit2 of the asset is directl2 related to its &roductive use (d) )one of the above
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J &urchased a machine for ,s. 1(*((( on 1st &ril* !((9. Ce&reciation is &rovided K 1(% on written down value method. The de&reciation &rovided on the machine in at the beginning of !((<H!((? is (a) ,s. 9'( (b) ,s. ?(( (c) ,s. 1*((( (d) ,s. 1*'(( Dhich of the following is an item of trading accountE (a) 8actor2 re&airs (b) Coc1 dues (c) Ce&reciation on office furniture (d) 3onsumable stores Dhich of the following statement is trueE (a) The written down value of an asset de&reciated on reducing balance method can never be @ero. (b) Goods given as charit2 is the business income. (c) 0nterest &aid on ban1 loan is not to be treated as revenue e+&ense. (d) 3ash in hand means total amount receivable from debtors. Iow balance of &re&aid rent account is treated while &re&aring final accounts of a firmE (a) Personal account (b) ,eal account (c) )ominal account (d) 8i+ed e+&enditure account Ban1 interest received$&aid a&&earing in the trial balance will be: (a) Shown as an asset in the balance sheet. (b) Cebited to the &rofit and loss account. (c) 3redited to the &rofit and loss account. (d) 4ither (b) or (c) n unsold &roduct costing ,s.!(*((( is ta1en over b2 venture at ,s.1'*(((* the Loint ;enture credited b2: (a) ,s.!(*((( (b) ,s.'*((( (c) ,s.1'*((( (d) ,s.)il ccount will be

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0n a Loint ;enture contributes ,s.'*((( and B contributes ,s.1(*(((. Goods are &urchased for ,s.11*!((. 4+&enses amount to ,s.<((. Sales amount to ,s.1-*(((. The remaining goods were ta1en b2 B at an agreed &rice of ,s.-((. and B &rofit sharing ration is 1:! res&ectivel2. s a final settlement* how much will receiveE (a) ,s.'*<(( (b) ,s./*((( (c) ,s.'*((( (d) ,s.1(*<(( and B enter into a =oint venture to underwrite the shares of M Ftd. M Ftd ma1e an e5uit2 issue of 1((((( e5uit2 shares of ,s.1( each.<(% of the issue are subscribed b2 the &art2. The &rofit sharing ratio between N B is #:!. The balance shares were not subscribed b2 the &ublic* &urchased b2 and B in &rofit sharing ratio. Iow ma2 shares to be &urchased b2 (a) <(((( Shares (b) (c) (d) 9!((( shares 1!((( shares <((( shares
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The balance in the 0nvestment 8luctuation 8und* after meeting the loss on revaluation of investments* at the time of admission will be transferred to: (a) 3a&ital accounts of the &artners (b) ,evaluation ccount (c) General ,eserve (d) )one of the above business earned an average &rofit of ,s.'(*((( during last few 2ears and the normal rate of return in the similar t2&e of business is 1(%.The value of the net assets is ,s.1*'(*((( and the value of goodwill according to the ca&itali@ation methods will be: (a) ,s.'*((*((( (b) ,s.#*'(*((( (c) ,s.1*'(*((( (d) ,s.#*((*((( Dhen a &artner is entitled to interest on ca&ital contributed b2 him* such interest will be &a2able: (a) 6nl2 out of &rofit (b) 6nl2 out of loss (c) )ever &aid (d) )one 0f on a share of ,s.!(* ,s.1/ called u&* ,s.1! is &aid u&* the amount to be debited to share ca&ital account is: (a) ,s.!( (b) ,s.1/ (c) ,s.1! (d) )0F Dhich of the following is false in relation to forfeiture of sharesE (a) Dhen the shares are forfeited* securities &remium account will be debited along with share ca&ital account* if the &remium has not been received. (b) Dhere forfeited shares are reissued at &remium* the amount of such &remium will be credited to securities &remium account. (c) Foss on reissue can not be more than the gain on forfeiture of those e5uit2 shares. (d) Gain on forfeiture of e5uit2 shares must be transferred to ca&ital reserve account before the close of the 2ear even if the shares are not reissued. Ftd. issued shares of ,s.1( each at a discount of '%. Ar. B &urchased '( shares and &aid ,s.- on a&&lication but did not &aid the allotment mone2 of ,s.#.'(. The com&an2 decided to forfeit his entire shares* the forfeiture account will be credited with ,s.>>>>>>>. (a) ,s.1(( (b) ,s.!(( (c) ,s.#(( (d) ,s.#9' &rivate com&an2 needs to be registered with a minimum ca&ital of ,s.>>>>>>>>. (a) ,s.' la1hs (b) ,s.' crores (c) ,s.'( crores (d) ,s.1 la1hs ccounting Standards in 0ndia are issued b2 (a) 0nstitute of 3hartered ccountants of 0ndia. (b) ,eserve Ban1 of 0ndia. (c) State Government. (d) 3entral Government.
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Dhat are the limitations of OAone2 Aeasurement 3once&tPE (a) s &er this conce&t* a transaction is recorded at its mone2 value on the date of occurrence and the subse5uent changes in the mone2 value are convenientl2 ignored. (b) n2 transaction$event ins&ite of being ver2 im&ortant cannot be recorded in the boo1s of accounts* if it cannot be e+&ressed in mone2 value. (c) Both (a) and (b) (d) )one of the above ccording to accrual conce&t* Sales are to be recorded (a) Dhen advance for order is received. (b) Dhen cash is realised from debtors. (c) Dhen order is received. (d) Dhen goods are delivered to customer. Bad debts of ,s.1(*((( a&&ears as an ad=ustment below the trial balance* the effect of this will be: (a) 3redit sundr2 debtors onl2. (b) Cebit bad debts account onl2. (c) Cebit sundr2 debtors account and credit bad debts account. (d) Cebit bad debts account and credit sundr2 debtors account. The balance of sales account is transferred to: (a) Profit N loss account. (b) Balance sheet. (c) Trading account. (d) )o where in the boo1s. Goods destro2ed b2 fire should be debited to: (a) Purchase account (b) 3ash account (c) Goods lost b2 fire account: (d) Sales account. 0nsurance claim received on account of &lant N machiner2 damaged com&letel2 b2 fire is: (a) 3a&ital e+&enditure. (b) ,evenue e+&enditure. (c) 3a&ital recei&t. (d) ,evenue recei&t. n Bnfavorable ban1 balance means (a) 3redit balance in the &ass boo1 (b) 3redit balance in the cash boo1 (c) Cebit balance in the cash boo1 (d) 8avorable balance in the cash boo1 trader issued che5ues worth ,s. 9*<(( out of which che5ues worth ,s /*'(( onl2 &resented into ban1 then on reconciling the 3ash Boo1 with the Pass boo1* the amount to be added will be : (a) /*'(( (b) 1*#(( (c) 9*<(( (d) 1-*#(( Ban1 ,econciliation Statement is &re&ared with the hel& of: (a) Ban1 3olumn of the 3ash Boo1 and 3ash 3olumn of the 3ash Boo1 (b) Ban1 Statement and 3ash column of the 3ash Boo1 (c) Ban1 Statement and Ban1 column of the 3ash Boo1 (d) ll of the bove
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Section-B : Mercanti e !a" Q1. The Sale of Goods ct came into force on (a) 1st Aarch. 1?#( (b) 1st Lul2* 1?#( (c) #1st Aarch. 1?#( (d) #1st Lul2* 1?#(* Q!. agreed to sell to B all the 1(( bales of long sta&le cotton l2ing in his godown. Bn1nown to both the &arties* the cotton had alread2 destro2ed in an accidental fire. 0n this case* the contract of sale is (a) ;oid as the contract of sale is for s&ecific goods. (b) )ot void as the contract of sale is for unascertained goods. (c) ;oidable at the o&tion of the bu2er. (d) ;oidable at the o&tion of the seller. 0n case of sale b2 sam&le as* well as descri&tion* where the goods corres&ond with sam&le onl2* then the (a) Bu2er can re=ect the goods. (b) Bu2er cannot re=ect the goods. (c) 3ontract is automaticall2 terminated. (d) Seller is liable for &unishment. Dhere the documents of title are made in the name of the bu2er* but are sent b2 the seller to his own agent with s&ecific instructions to &art with them* then the seller is (a) Presumed to have reserved his right of dis&osal. (b) )ot &resumed to have reserved his right of dis&osal. (c) Guilt2 of breach of contract for im&osing unreasonable condition. (d) Fiable to &erform the contract even if the bu2er does not &a2 the &rice. 6n the &a2ment of &rice b2 the bu2er* if the seller fails to deliver the goods* then the bu2er can file a suit for (a) ,efund of &rice (b) )one of these (c) 0nterest (d) Both (a) and (b). The right of lien is e+ercised b2 an un&aid seller in order to (a) ,etain &ossession of goods (b) ,ecover damages (c) ,egain &ossession of goods (d) Punish the bu2er. 0f after arrival of the goods at a&&ointed destination* the carrier ac1nowledges to the bu2er that he is now holding the goods on his behalf* but the bu2er instructs the carrier to carr2 the goods to some other destination then (a) Transit comes to an end (b) Transit does not come to an end (c) SellerGs right of lien revives (d) )one of these. 0n case of sale b2 sam&le* there is an im&lied condition that the goods shall (a) 3orres&ond with the sam&le (b) Be free from latent defects (c) Both (a) and (b) (d) 4ither (a) or (b). The liabilit2 for im&lied condition and warranties ma2 be e+cluded b2 (a) n e+&ress agreement between the &arties. (b) The course of dealings between the &arties. (c) The customs or usages of a &articular trade. (d) ll of these.
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Goods having future viabilit2 have condition as (a) Title (b) Cescri&tion (c) Aerchantabilit2 (d) Qualit2 0n case of breach of contract* which of the following remed2 is available to the aggrieved &art2E (a) Suit for damages. (b) Suit for rescission. (c) Suit for s&ecific &erformance. (d) ll of above. 1hil agrees to &a2 ,s. '(*((( to )i1hil if he divorces his s&ouse. The agreement is (a) ;oid (b) ;alid (c) ;oidable (d) 3ontingent. Su&&ose the time fi+ed for &erformance of the contract has e+&ired but the time is not essential. Dhat is the remed2 available to the &romisee in the circumstancesE (a) )o remed2 available. (b) To claim com&ensation. (c) 3an rescind the contract. (d) )one of the above. 1htar &aid ,s. !*((*((( to nu& for &roviding him a =ob in Government 6rganisation. 6n his failure to &rovide the =ob* nu& sued 1htar for recover2 of the amount. Dhich of the following is correctE (a) The contract is valid and nu& can recover the amount from 1htar. (b) The contract is void as it is o&&osed to &ublic &olic2 and nu& cannot recover. (c) nu& can recover the amount with interest. (d) nu& can recover the amount of ,s. !*((*((( and damages. valid contract is one* which include (a) Aoral obligation (b) Social obligation (c) Fegal obligation (d) ll of above. n agreement to bring life into the dead bod2 is void on grounds of (a) 0nitial 0m&ossibilit2. (b) Subse5uent 0m&ossibilit2. (c) )o consideration. (d) Su&ervening im&ossibilit2. 0f the time is the essence of the contract and &romisor fails to &erform the contract b2 the s&ecified time* the contract: (a) Becomes void (b) ,emains void (c) Becomes voidable at the o&tion of the &romisee. (d) Becomes unenforceable. 0n case of antici&ator2 breach* the &romisee can o&t to 1ee& the contract alive till the date of &erformance. 0n such a case* where the &romisor elects to &erform on due date: (a) The &romisee is bound to acce&t the &erformance. (b) The &romisee is not bound to acce&t the &erformance. (c) 4ither (a) or (b).
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(d) )either (a) nor (b). Q1?. 0f sales ta+ has been de&osited with res&ect to an item on which there was no lev2* then the de&ositor is not entitled to claim refund from the government. This statement is >>>>>>>>>> . (a) True (b) Partl2 True (c) 8alse (d) )one of the above Dhich of the following statement is correct: (a) Faw of contract creates =us in rem as distinguished from Lus in &ersonam (b) Faw of contract is onl2 the whole law of agreements nor the whole law of obligation (c) Faw of contract creates onl2 =us in rem (d) Faw of contract is neither the whole law of agreements nor the whole law of obligation. A and ) are &artners in a retail business. A bu2s &roducts on credit basis from a wholesaler in 8irm7s name but gives them to his wife. 0s this act within 7s im&lied authorit2E (a) .es (b) Partl2 .es (c) )o (d) )one of the above O,etirement of &artnerP is dealt under section.......... of The 0ndian Partnershi& act* 1?#!. (a) !! (b) #! (c) -# (d) '# O,ight of outgoing &artner to carr2 on com&eting businessP is dealt under section... of &artnershi& act* 1?#! (a) #(b) #' (c) #/ (d) #9 The &artners continue to be liable as such to third &arties for an2 act done b2 an2 of them which would have been the act of the firm if done before dissolution* until (a) Cissolution deed is signed b2 all the &artners (b) &&lication is made to the court for dissolution (c) Public notice of the dissolution is given (d) ssets are distributed among the &artners Dhich one of the following is not &ermissible in a firm7s nameE (a) Aultinational (b) 0nternational (c) Transnational (d) 4m&ire ,ectification of mista1e in the register of firms relating to an2 firm shall be done (a) 6n the basis of an a&&lication made b2 the &arties concerned (b) Suo moto b2 the registrar of firms. (c) 4ither (a) or (b) (d) Both (a) and (b) Ceath of a &artner has the effect of (a) Cissolving the &artnershi& firm (b) Iis heirs =oining the firm (c) 3ontinuit2 of the business of the firm as it is before the death of &artner
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Partners have a general dut2 to arrange for the audit of accounts of the firm: (a) True (b) Partl2 True (c) 8alse (d) )one of the above The &artnershi& must be signed b2 the (a) Aa=orit2 of &artners (b) ll &artners (c) B2 wor1ing &artners (d) )one of the above Dhich one of the following is not an Ousual activit2P for a trading concern for im&lied authorit2 &ur&oses (a) Bu2ing and selling of goods (b) Ta1ing loans (c) Crawing and acce&ting bill of e+change (d) Dithdrawing suits filling on behalf of the concern condition is a sti&ulation which is (a) 3ollateral to the main &ur&ose of contract of sale. (b) 4ssential to the main &ur&ose of contract of sale. (c) )ot essential to the main &ur&ose of contract of sale. (d) )one of these. O0f 2ou contract to sell &eas 2ou cannot com&el the bu2er to ta1es beansP. This is (a) 3ondition as to title (b) Sale b2 descri&tion (c) Sale b2 sam&le (d) 3ondition as to 5uantit2 The deliver2 of goods should (a) Be voluntar2 and lawful. (b) Iave the effect of &utting the goods in bu2erGs &ossession. (c) Both of these. (d) )one of these. 0n case of sale b2 nonHowners* the (a) Sale is void and the bu2er gets no title to the goods. (b) Sale is voidable and the bu2er gets title at the o&tion of the owner. (c) Bu2er does not get a better title to the goods than that of the seller. (d) Bu2er gets a better title than that of the seller. Bnless otherwise agreed* the e+&enses for &utting the goods in a deliverable state are borne b2 the (a) Seller (b) Bu2er (c) Lointl2 b2 both (d) 3arrier The legal definition of an Gun&aid sellerG is given in which of the following section of the Sale of Goods ct* 1?#(E (a) Section -(b) Section -' (c) Section -9 (d) Section -<.
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Dhich of the following warranties are found in an auction saleE (a) uthorit2 to sell (b) )ot aware of an2 defects of title of his &rinci&le (c) Quite &ossession of goods auctioned (d) ll the above Transfer of documents of title to the goods sold to the bu2er* amounts to (a) ctual deliver2 (b) S2mbolic deliver2 (c) 3onstructive deliver2 (d) )one of these. The goods sold to the bu2er should be delivered at (a) S&ecified &lace. (b) n2 &lace of sellerGs choice. (c) n2 &lace of bu2erGs choice. (d) Mnown &lace of the mar1et. Bnder the sale of goods act*1?#(* Darrant2 is a sti&ulation: (a) 3ollateral to the main &ur&ose to the contract. (b) 4ssential to the main &ur&ose to the contract. (c) Dith regard to time (d) Dith regard to &rice The law of contract in 0ndia is contained in (a) 0ndian 3ontract ct* 1?9! (b) 0ndian 3ontract ct* 1</! (c) 0ndian 3ontract ct* 1<9' (d) 0ndian 3ontract ct* 1<9! 6n the valid &erformance of the contractual obligations b2 the &arties* the contract (a) 0s discharged. (b) Becomes Fawful. (c) Becomes voidable. (d) )one of these. contract is discharged b2 recession which means that (a) change in one or more terms of the contract. (b) substitution of e+isting contract for a new one. (c) n abandonment of rights b2 a &art2. (d) cancellation of the e+isting contract. P* b2 a letter dated !'th Aarch* !((? offers to sell his house to B for ,s. -( la1hs. The letter reaches B on !9th Aarch* !((?* who &osts his acce&tance on !<th Aarch* !((? which reaches on #(th Aarch* !((?. Iere* the communication of offer is com&lete on (a) !'th Aarch* !((? (b) !9th Aarch* !((? (c) !<th Aarch* !((? (d) #(th Aarch* !((? Ar. San=a2 agrees to &a2 ,s.-( la1hs to Ar. =a2 if =a2 &rocures an em&lo2ment for San=a2 in Government de&artment. This agreement is (a) ;oid (b) ;alid (c) ;oidable (d) 3ontingent.
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contingent contract de&endent on the nonHha&&ening of s&ecified uncertain event within fi+ed time can be enforced if the event (a) Ia&&ens within the fi+ed time (b) Becomes im&ossible before the e+&ir2 of fi+ed time (c) Coes not ha&&en within fi+ed time (d) Both (b) and (c) agrees to &a2 ,s. !*((( to ; if it rains* and ; &romises to &a2 a li1e amount to agreement is called (a) Quasi 3ontract (b) 3ontingent 3ontract. (c) Dagering greement. (d) ;oidable 3ontract. Dho among the following is not dis5ualified b2 law to enter in to contractE (a) Crun1ard &erson. (b) lunatic. (c) 0nsolvent &erson. (d) ll of the above Sonia contracts with nshul to bu2 a nec1lace* believing it is made of &earls whereas in fact it is made of imitation &earls of no value. nshul 1nows that Sonia is mista1en and ta1es no ste&s to correct the error. )ow Sonia wants to cancel the contract on the basis of fraud. Dhich of the following statement is correctE (a) Sonia can cancel the contract alleging fraud. (b) Sonia cannot cancel the contract. (c) Sonia can cancel the contract alleging undue influence. (d) Sonia can claim damages. Dhich of the following is$are not com&etent to enter into a contractE (a) Funatic &erson (b) minor. (c) &erson who is not ca&able of understanding the contract at the time of its ma1ing. (d) ll of the above. if it does not rain* this

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Section-C : Econo'ics Q1. G4, stands for (a) Gross 4ntertainment ,atio (b) Gross 4nrollment ,atio (c) Gross 4nrolled ,atio (d) Great 4ntertainment ,esorts Q!. 0ncome ta+ was first introduced in 0ndia in (a) 1<'9 (b) 1?'9 (c) 1</( (d) 1?-9 Dhich &lan set a target of reduction in &overt2 ratio to 1?.#% b2 !((9E (a) 'th &lan (b) /th &lan (c) ?th &lan (d) 1(th &lan
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Cis investment 3ommission in 0ndia was established in (a) ugust 1??/ (b) ugust 1??! (c) ugust 1??9 (d) ugust 1??' T,0Ps stand for (a) Trade ,elated 0nvestment Pro&ert2 ,ights (b) Trade ,elated 0ntellectual Pro&ert2 ,ights (c) Trade ,elated 0nterest Profit ,ights (d) Trade ,elated 0ntellectual Pro=ect ,eview >>>>>>> is 1nown as the Qsoft loan window7 of the Dorld Ban1 (a) 0C (b) 083 (c) 0B,C (d) 0A8 Dhich of the following is the e+am&le of near mone2E (a) Ban1 Craft (b) 8iat mone2 (c) Treasur2 bill (d) ll of the above ,eserve ban1 act as a (a) dvisor to government. (b) 8riend* &hiloso&her to commercial ban1. (c) &e+ monetar2 institution. (d) ll of the above. 3entral Ban1 is the a&e+ monetar2 institution in the countr2 vested with s&ecial &owers to (a) 3ontrol volume of mone2 and ban1. (b) 0ssue currenc2. (c) Aaintain the e+ternal value of national currenc2. (d) ll of the above Aonetar2 &olic2 also affects (a) ,ate of savings in the countr2 (b) Fevel of investment in the countr2 (c) Fevel of out&ut income and &rice (d) ll the above. The law of scarcit2 (a) Coes not a&&l2 to rich and develo&ed countries. (b) &&lies onl2 to the less develo&ed countries. (c) 0m&lies that consumer7s wants will be satisfied in a socialistic s2stem. (d) 0m&lies that consumer7s wants will never be com&letel2 satisfied. government deficit will reduce unem&lo2ment and cause an increase in &rices. This statement is (a) Positive (b) )ormative (c) 0ncom&lete (d) )one of these

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Dho e+&lains economics as a science of d2namic growth and develo&mentE (a) ,obbins (b) dam Smith (c) lfred Aarshall (d) Samuelson 4conomics as a sub=ect is &rimaril2 concerned with the stud2 of (a) Iow new wants and economic resources are &roduced b2 businessmanE (b) Iow to ma1e more effective use of resources through reducing wantsE (c) Cetermining how the government should allocate resourcesE (d) llocating scarce resources to satisf2 com&eting and unlimited wants. The income elasticit2 of demand is greater than unit2* if the commodit2 is (a) necessar2 good (b) Fu+ur2 good (c) n inferior good (d) non related good nother name of law of variable &ro&ortion is (a) Faw of increasing return (b) Faw of diminishing return (c) Faw of negative return (d) )one of the above n increase in the demand for &eanut butter could be caused b2 a$an (a) Cecrease in consumer income (b) 0ncrease in the su&&l2 of &eanut butter (c) Cecrease in the &rice of bread (d) Crought in Georgia that destro2ed #( &ercent of the &eanut cro& 0n an indifference curve* the A,S falls when (a) Aoving u&wards (b) Aoving downwards (c) t the middle (d) )one of these Dhich of the following &oint shows the reason for diminishing return to factorE (a) 0ndivisibilit2 of fi+ed factors. (b) Scarcit2 of fi+ed factors. (c) Both (a) and (b). (d) )either (a) nor (b). lternative cost is also 1nown as (a) 4+ternal cost. (b) Aone2 cost. (c) 6&&ortunit2 cost. (d) )one of the above firmGs average fi+ed cost is ,s. !( at / units of out&ut. Dhat will it be at - units of out&utE (a) ,s./( (b) ,s.#( (c) ,s.-( (d) ,s.!(

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Total average cost is e5ual to (a) 83" ;3 (b) T3HT83 (c) ;3H 83 (d)

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firm sto&s &roduction at the level where (a) verage revenue is e5ual to average cost (b) verage revenue is less than average cost. (c) verage revenue is greater than average variable cost. (d) verage revenue is less than average variable cost. Dhat is the reason for the downward slo&e of mono&olist demand curveE (a) Aono&olist can influence the &rice. (b) Aono&olist can influence the out&ut. (c) The industr2 demand curve is the mono&olist demand curve. (d) ll of the above. mar1et where man2 sellers offer differentiated &roducts to man2 bu2ers is 1nown as >>>>>>>> . (a) 6ligo&ol2. (b) Aono&ol2. (c) Aono&olistic. (d) Perfect com&etition. Dhat is the other name given to the average revenue curveE (a) Profit 3urve (b) Cemand 3urve (c) verage 3ost 3urve (d) 0ndifference 3urve Dhich of the following is not an indirect ta+ reformE (a) ,educing the &ea1 rate of custom duties (b) ,ectif2ing anomalies li1e inverted dut2 structure (c) The ta+ rate on foreign com&anies has also been reduced from ''% to -( % (d) 0ntroduction of value added ta+ for achieving harmoni@ed ta+ation regime Groundnuts* 3otton* Lute are (a) 8ood cro&s (b) 3ereals (c) 3ash cro&s (d) )on food cro&s s &er Budget !((<H(?* the 3ST is reduced to >>>>>>% from the e+isting >>>> % (a) !%* -% (b) !%*#% (c) #%*!% (d) !%*-% Aeasure which gives the lowest estimation of unem&lo2ed es&eciall2 for &oor econom2 (a) 3CS (b) 3DS (c) 3AS (d) Bsual Status

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Sahara Let and Mingfisher are e+am&les of (a) Private schools (b) Private airlines (c) Private shi&s (d) Private railwa2s Se+ ratio of female is measured &er>>>>>>> males (a) 1(( (b) 1( (c) 1((( (d) '(( >>>>>>>> agenc2 discharges the res&onsibilities of dis&ute settlement bod2 under DT6 (a) B)6 (b) B6 (c) Securit2 3ouncil (d) General 3ouncil TradeHoffs are re5uired as wants are unlimited and resources are (a) Bnlimited (b) 4fficient (c) 4conomical (d) Scare 0n the following 8C0 allowed is 1(( % e+ce&t (a) Postal Service Sector (b) ir&orts (c) 3ourier Services (d) ir trans&ort services Dhich one of the following is not a characteristic of mone2E (a) Aone2 acts as a medium of e+change. (b) Aone2 acts as a store of value. (c) Aone2 is of intrinsic value. (d) Aone2 acts as a unit of account. ll of the following are 5ualitative methods of credit control e+ce&t (a) 3ash ,eserve ,atio. (b) Aargin re5uirement. (c) Aoral suasion. (d) ,egulation of consumer credit. The mone2 su&&l2 is the stoc1 of mone2 held b2 theH (a) Public (b) Public and the Government (c) Public and ban1ing s2stem (d) Public* ban1ing s2stem and the Government Dhich of the following is e+cluded in total amount of mone2 in a countr2E (a) Bills. (b) 3oins and notes. (c) Gold. (d) Ban1 Ce&osits. Aone2 is created when (a) ban1 acce&ts de&osits.
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ban1 gives loan to an investor. de&ositor withdraws mone2. ll the above.

4conomics is the stud2 of (a) Dealth (b) Iuman Delfare (c) 4conomic growth (d) Scarcit2 and choices ,easoning &roceeds from &articular to general under (a) Ceductive method (b) 0nductive method (c) 3onclusive method (d) )one of above Bnder what conditions the &roduction &ossibilit2 curve will have a concave sha&eE (a) Dhen marginal o&&ortunit2 cost is increasing. (b) Dhen marginal o&&ortunit2 cost is diminishing. (c) Dhen marginal o&&ortunit2 cost is constant. (d) )one of the above dam Smith is regarded as the (a) 3lassical economist of economics. (b) 8ather of Aodern economics. (c) Scientist of Ph2sical science. (d) )one of the above. 4lasticit2 of demand refers to (a) Price elasticit2 of demand (b) 0ncome elasticit2 of demand (c) 3ross elasticit2 of demand (d) )one of the above Su&&l2 curve of a labour is (a) ,ectangular h2&erbola (b) 8orward falling (c) Bac1ward bending (d) )one of the above Dhen we are drawing an indifference curve what does one ta1e on two a+isE (a) Quantit2 and &rice of good (b) Quantit2 of two goods (c) Price of two goods (d) Quantit2 along J a+is and &rice on . a+is The factors which determine &rice elasticit2 of demand for goods are (a) vailabilit2 or non availabilit2 of substitutes (b) Dhether the good is a lu+ur2 or not (c) Dhether the good can be &ut to alternative uses or not (d) ll of the above The &roducer is in e5uilibrium at a &oint* where the cost line is (a) bove the iso5uant. (b) Below the iso5uant. (c) 3utting the iso5uant. (d) Tangent to the iso5uant.
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De will e+&lain Oincreasing returns to scaleP with the hel& of (a) Fabour &roductivit2. (b) 4conomies of scale. (c) 8i+ed scale of &lant. (d) )one of the above.

Section-( : )uantitati*e A+titu,e Q1. 8ind the &robable error of r if r R (.(' and n R!'. (a) H(.1?!< (b) (.1!?! (c) H(.(1!? (d) (.(1?! bag contains ' white and 9 blac1 balls. 6ne ball is drawn. Dhat is the &robabilit2 that it is of white colourE (a) '$1! (b) 9$1! (c) 1$1! (d) !$1! 8ive men in a com&an2 of !( are graduates. 0f # of them are &ic1ed out at random* then the &robabilit2 that the2 all are graduates is (a) 1$-< (b) 1$#< (c) 1$'9 (d) 1$11Bsing the formula for binomial distribution* the &robabilit2 of rolling at most ! si+es in ' rolls of a dice is (a) (b) (c) (d) Q'.

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)umber of mis&rints &er &age of a thic1 boo1 follows (a) Binomial distribution (b) Poisson distribution (c) )ormal distribution (d) Standard normal distribution n estimate based on a fi+ed set of values of a sam&le alwa2s &ossess (a) single value (b) n2 value (c) value e5ual to one (d) ll of these Sam&ling fluctuations ma2 be described as (a) The variation in the values of a statistic (b) The variation in the values of a sam&le (c) The differences in the values of a &arameter (d) The variation in the values of observations
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Fas&e2erGs* PaascheGs or the 8isherGs ideal inde+ do not satisf2 (a) Time ,eversal Test (b) Bnit Test (c) 3ircular Test (d) )one of the above

Q?.P(1 is the inde+ for: (a) 1 on ( (b) ( on 1 (c) ( on ( (d) 1 on 1 Q1(. Dhich of the following satisfies the circular test: (a) I.A. of &rice relative or the weighted aggregate with fi+ed weights (b) G.A. of &rice relative or the weighted aggregate with fi+ed weights (c) .A. of &rice relative or the weighted aggregate with fi+ed weights (d) ll of the above The ratio between !' minutes to -' seconds is E (a) 1(( : # (b) # : 1(( (c) 1(( : ! (d) ! : 1(( The mean &ro&ortional between 1.- gms and './ gms is (a) !< gms (b) !.< gms (c) #.! gms (d) )one of these 0f is a root of -+!"!+H1R( then the other root is (a) ##H- (b) -#H# (c) ##H- (d) -#"# The numerical difference of the roots of +!H9+H? R ( is (a) <' (b) ?9 (c) !<' (d) ' cannot bu2 more than 1(( 1g of raw material J and .. J and . can be related b2 the ine5ualit2 (a) ( +"2R1(() (b) (+"2S1(() (c) (+"2T1(() (d) )one of these Iow much interest will be earned on ,s.!*((( at /% sim&le interest for ! 2earsE (a) ,s.!-( (b) ,s.!'( (c) ,s.!/( (d) )one of these

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0n how man2 2ears a certain sum will tri&le itself at -% com&ound interestE (a) !<.(/ 2ears (b) !9.(/ 2ears (c) !'.(/ 2ears (d) !-.(/ 2ears * B* 3 and C are to give s&eeches in a class. The teacher can arrange the order of their &resentation in (a) 1! wa2s (b) !- wa2s (c) - wa2s (d) !'/ wa2s Sum to infinit2 of the series (#$-) U ( '$-!) " (#$-#) U ('$--) " (#$-') U ('$-/) (a) 9$1' (b) !$' (c) 1$# (d) )one of these The largest term of the se5uence (1$'(#)* (-$'!-)* (?$'<1)* (1/$/?!)*V.. is (a) 1/$/?! (b) -$'!(c) -?$1'!? (d) )one of these 0f n(B) R /(* n(a) R #'* n(B) R !- and n( B)7 R 1( then n( B) is (a) ? (b) < (c) / (d) )one of these R W+ : + is not e5ual to +X re&resents (a) W+X (b) W1X (c) W X (d) W(X The gradient of the curve 2 R !+ # H #+ ! H 1!+ " < at + R ( is (a) H 1! (b) 1! (c) ( (d) )one of these Given + R a t ! * 2 R !at * (a) (b) (c) (d) " VVVV. is

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Dhile editing &rimar2 data we onl2 have to see that the information contained in 5uestionnaire is (a) 3om&lete N ccurate (b) 3onsistent (c) Iomogeneous (d) ll of these The accurac2 and consistenc2 of data can be verified b2 (a) 0nternal chec1ing (b) 4+ternal chec1ing (c) Scrutin2 (d) Both (a) and (b) The value of the middle most item when the2 are arranged in order of (a) Standard deviation (b) Aean (c) Aode (d) Aedian Dhen the distribution is s2mmetrical* mean* median and mode (a) 3oincide (b) Co not coincide (c) Both (a) and (b) (d) )one of these S&earmanGs ran1 correlation formula is given b2 , R 1 (a) (b) (c) (d) Sum of the ran1 of the two variables Cifference between the ran1 of two variables Both (a) and (b) above )one of the above magnitude is called

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0f the data are collected for two variables simultaneousl2* it is 1nown as: (a) Bnivariate Cata (b) Bivariate Cata (c) 3onditional Cata (d) )one of the above fair coin is thrown in the air four times. 0f the coin lands with the head u& on the first three tosses* what is the &robabilit2 that the coin will land with the head u& on the fourth tossE (a) ( (b) 1$1/ (c) 1$< (d) 1$! The difference between a random variable and a &robabilit2 distribution is (a) random variable does not include the &robabilit2 of an event. (b) random variable can onl2 assume whole numbers. (c) &robabilit2 distribution can onl2 assume whole numbers (d) )one of the above. 0n a sam&le of 1!( wor1ers in a factor2 the mean and standard deviation of wages were ,s.11.#' and ,s.#.(# res&ectivel2. 8ind the &ercentage of wor1ers getting wages between ,s.? and ,s.19in the whole factor2 assuming that the wages are normall2 distributed. (a) (.9'(? (b) (./'(? (c) (.''(? (d) )one of these
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Dhat is the &robabilit2 of ma1ing # correct guesses in ' true Ufalse answer t2&e 5uestionsE (a) (.#1!' (b) (.'/9/ (c) (./<9' (d) (.-#!' Dhen &o&ulation is large* the finite &o&ulation correction (f&c) is (a) 1 (b) ( (c) ! (d) )one of these n unordered sam&le of si@e n can occur in (a) n wa2s (b) nY wa2s (c) n ! wa2s (d) 6ne wa2 B2 what &rocess can real wages be calculated using 3ost of living 0nde+ numbersE (a) Ceflating of 0nde+ number (b) S&licing of 0nde+ number (c) Base shifting (d) )one of these The inde+ no. is a s&ecial t2&e of average: (a) 8alse (b) True (c) Both (a) and (b) (d) )one of the above ,ather than absolute amount of change* what other changes do 0nde+ numbers showsE (a) Percentage (b) ,elative (c) Both (a) and (b) (d) )one of the above The &rices of scooter and a mo&ed are in the ratio ? : '. 0f a scooter costs ,s. /<(( more than a mo&ed* the &rice of scooter is (a) ,s. 19*((( (b) ,s. 1#*/(( (c) ,s. 1'*#(( (d) )one 0n a mi+ture of -! litres* the ratio of mil1 and water is / : 1. 0f another 1! litres of water is added to the mi+ture* then the ratio of mil1 and water in the resultant mi+ture is (a) ! : 1 (b) 1 : ! (c) 9 : 1 (d) # : 0f log#a R ! then a is (a) # (b) ! (c) ? (d) )one of these
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The denominator of a fraction e+ceeds the numerator b2 ' and if # is added* fraction becomes #$-. The fraction is (a) 1!$19 (b) 1#$1< (c) 1/$!1 (d) )one of these 6n solving the s2stem of ine5ualities (#+ U 9)Z ('"+) : (11H'+)S1* we get (a) !S+Z/ (b) H!S+[/ (c) H!S+S/ (d) )one of these ,ahul invested ,s.9(*((( in a ban1 at the rate of /.'% &.a. sim&le interest rate. Ie received ,s.<'*?!' after the end of the term. 8ind out the &eriod for which sum was invested b2 ,ahul. (a) #.' 2ears (b) !.' 2ears (c) 1.' 2ears (d) )one of these 8ind the amount of an annuit2 if &a2ment of ,s.'(( is made annuall2 for # 2ears at interest rate of /% com&ounded annuall2. (a) ,s.1*'?9.// (b) ,s.1*'1?.// (c) ,s.1*'?1.// (d) )one of these father with < children ta1es those # at a time to the @oological garden* as often as he can without ta1ing the same # children together more than once. Then (a) )umber of times he will go is '/ (b) )umber of times each child will go is !1 (c) )umber of times a &articular child will not go is #' (d) ll of these The number of wa2s in which 1( bo2s and 1( girls can be seated in a row so that bo2s and girls alternate is (a) #/!<<(( (b) #/!<9#( (c) #/!<</( (d) )one of these 0f one geometric mean G and two arithmetic means & and 5 be inserted between two numbers* then G! is e5ual to (a) (#&H5)(#5H&) (b) (!&H5)(!5H&) (c) (-&H5)(-5H&) (d) )one of these

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