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Commerce Quiz | Commerce Short Questions and Answers

41 Audit adopted by banking company is–
[A] Continuous Audit
[B] Periodical Audit
[C] Internal Audit
[D] Balance Sheet Audit
Answer: Continuous Audit
42 Depreciation is a process of which one of the following ?
[A] Valuation of assets
[B] Allocation of acquisition cost over the estimated useful life of the asset
[C] Allocation of realizable value over the estimated useful life of the asset
[D] Estimating the market value of the asset on the balance sheet date
Answer: Allocation of acquisition cost over the estimated useful life of the asset

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43 A particular firm provided the following data for a year–

Current Ratio 2•5 : 1

Liquid Ratio 1•5 : 1

Net Working Capital

Rs. 3,00,000

What are the current assets and current liabilities of this firm, respectively ?
[A] Rs. 3,00,000 and Rs. 1,50,000
[B] Rs. 5,00,000 and Rs. 2,00,000
[C] Rs. 2,00,000 and Rs. 5,00,000
[D] Rs. 3,00,000 and Rs. 1,00,000
Answer: Rs. 5,00,000 and Rs. 2,00,000
44 Given– Purchases – Rs.50,000 Sales – Rs.90,000 Closing Stock – Rs.7,000 Manufacturing Exp. – Rs.5,000 Rate of gross profit – Rs.331 3% on cost What is the opening stock ?
[A] Rs. 20,000
[B] Rs. 19,500
[C] Rs. 22,500
[D] Rs. 25,000
Answer: Rs. 19,500
45 The net profits of a business after providing for taxation for the past five years are Rs. 80,000, Rs. 85,000, Rs. 92,000, Rs. 1,05,000 and Rs. 1,18,000. Capital employed in the business is Rs. 8,00,000. Normal rate of return is 10%. What is the value of goodwill on the basis of capitalization of super profit method ?
[A] Rs. 1,00,000
[B] Rs. 1,50,000
[C] Rs. 1,60,000
[D] Rs. 1,80,000
Answer: Rs. 1,60,000
46 Debtors turnover ratio is 4.What is the average collection period ?
[A] 5 months
[B] 4 months
[C] 3 months
[D] 2 months
Answer: 3 months
47 Disinvestment in Public Sector is called–
[A] Privatisation
[B] Globlisation
[C] Liberalisation
[D] Industrialisation
Answer: Privatisation
48 What is Director Identification Number (DIN) ?
[A] An identification number which the individual company allots to the intending director
[B] A number which the Central Government allots to any individual intending to be appointed as director or to any existing director of a company
[C] A number which the SEBI allots to any individual intending to be appointed as director or to any existing director of a company
[D] A number which the Central Government allots to retired directors so as to build data base
Answer: A number which the Central Government allots to any individual intending to be appointed as director or to any existing director of a company
49 Private equity investors invest in a company based mainly on–
[A] the creditability and the valuation of the company
[B] the age of the company
[C] the location of the company
[D] the activity undertaken by the company
Answer: the creditability and the valuation of the company
50 A listed company opting for buyback of shares under the Companies Act, 1956 has to submit return, after completion of such buy-back within which one of the following periods ?
[A] 6 months of such completion to the Registrar of Companies only
[B] 45 days of such completion to the SEBI only
[C] 30 days of such completion to the Registrar of Companies and SEBI
[D] 30 days of such completion to the SEBI only
Answer: 30 days of such completion to the Registrar of Companies and SEBI
51 In case of any default made in complying with the provisions relating to the postal ballot, the officer on default will be punishable with which one of the following fines ?
[A] Rs. twenty thousand in respect of each such default
[B] Rs. fifty thousand in respect of each such default
[C] Rs. one lakh in respect of each such default
[D] Rs. two lakh in respect of each such default
Answer: Rs. fifty thousand in respect of each such default
52 Debentures of Rs. 4,25,000 are issued against the purchase of assets of Rs. 4,50,000. In this case the amount of Rs. 25,000 is–
[A] Capital Reserve
[B] Securities Premium
[C] Revenue Profit
[D] Goodwill
Answer: Capital Reserve
53 Workmen’s Compensation Fund is a–
[A] Provision
[B] Surplus
[C] Current liability
[D] Loan
Answer: Surplus
54 On liquidation of a Company first payment is made in respect of–
[A] Liquidator’s remuneration
[B] Legal expenses
[C] Preferential creditors
[D] None of the above
Answer: Preferential creditors
55 Which of the following is shown in Profit Loss Appropriation A/c ?
[A] Provision for Income Tax
[B] Provision for Depreciation
[C] provision for Doubtful Debts
[D] Contribution to General Reserve
Answer: Contribution to General Reserve
56 Pre-incorporation Profit is transferred to–
[A] General Reserve
[B] Capital Reserve
[C] Profit and Loss A/c
[D] Trading A/c
Answer: Capital Reserve
57 M.B.O. is a technique of–
[A] Planning only
[B] Controlling only
[C] Neither planning nor controlling
[D] Both planning and controlling
Answer: Controlling only
58 Maslow’s needs hierarchy theory relates to–
[A] Motivation
[B] Leadership
[C] Communication
[D] Directing
Answer: Motivation
59 “Authority flows downwards from top to the bottom whereas accountability flows upwards from bottom to top.” It is found in–
[A] Scalar chain
[B] Functional organisation
[C] Committee structure
[D] Multivariate Approach
Answer: Scalar chain
60 Coordination function of management aims at–
[A] Providing sufficient personnel
[B] Bringing harmony in various activities
[C] Taking up corrective course of action
[D] All the above
Answer: Bringing harmony in various activities

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