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CA - CPT ICAI Model Test Paper - 2


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200 Questions MCQ Test | CA - CPT ICAI Model Test Paper - 2

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CA - CPT ICAI Model Test Paper - 2 - Question 1

Which of the following is not a sub-field of accounting?

CA - CPT ICAI Model Test Paper - 2 - Question 2

Revenue from sale of products, is generally, realized in the period in which

CA - CPT ICAI Model Test Paper - 2 - Question 3

The determination of expenses for an accounting period is based on the principle of

CA - CPT ICAI Model Test Paper - 2 - Question 4

It is essential to standardize the accounting principles and policies in order to ensure

CA - CPT ICAI Model Test Paper - 2 - Question 5

Change in accounting estimate means

CA - CPT ICAI Model Test Paper - 2 - Question 6

Which account is the odd one out?

CA - CPT ICAI Model Test Paper - 2 - Question 7

In Double Entry System of Book-keeping every business transaction affects:

CA - CPT ICAI Model Test Paper - 2 - Question 8

Which of the following types of information are found in subsidiary ledgers, but not in the general ledger?

CA - CPT ICAI Model Test Paper - 2 - Question 9

Contra entries are passed only when

CA - CPT ICAI Model Test Paper - 2 - Question 10

The following is not a type of liability

CA - CPT ICAI Model Test Paper - 2 - Question 11

Present liability of uncertain amount, which can be measured reliably by using a substantial degree of estimation, is termed as ________

CA - CPT ICAI Model Test Paper - 2 - Question 12

When preparing a Bank Reconciliation Statement, if you start with a debit balance as per the Cash Book, then cheques issued but not presented within the period are __________

CA - CPT ICAI Model Test Paper - 2 - Question 13

Under inflationary conditions, ______ method will show highest value of closing inventory?

CA - CPT ICAI Model Test Paper - 2 - Question 14

In the case of downward revaluation of an asset, which is for the first time revalued, _______ account is debited.

CA - CPT ICAI Model Test Paper - 2 - Question 15

The portion of the acquisition cost of the asset, yet to be allocated to Profit and Loss Account is known as ________

CA - CPT ICAI Model Test Paper - 2 - Question 16

If a concern proposes to discontinue its business from March 2010 and decides to dispose off all its assets within a period of 4 months, the Balance Sheet as on March 31, 2010 should indicate the assets at their _________

CA - CPT ICAI Model Test Paper - 2 - Question 17

An entry which is made on both sides of a cash book is called​

CA - CPT ICAI Model Test Paper - 2 - Question 18

Sales for the year ended 31st March, 2010 amounted to Rs. 10,00,000. Sales included goods sold to Mr. A for Rs. 50,000 at a profit of 20% on cost. Such goods are still lying in the godown at the buyer’s risk. Therefore, such goods should be treated as part of

CA - CPT ICAI Model Test Paper - 2 - Question 19

As per Section 37 of the Indian Partnership Act, 1932, the executors would be entitled at their choice to the interest calculated from the date of death till the date of payment on the final amount due to the dead partner at ________ percent per annum.

CA - CPT ICAI Model Test Paper - 2 - Question 20

If del-credere commission is allowed for bad debt, consignee will debit the bad debt amount to:

CA - CPT ICAI Model Test Paper - 2 - Question 21

Mr. A purchased a machinery costing Rs. 1,00,000 on 1st October, 2011. Transportation and installation charges were incurred amounting Rs. 10,000 and Rs. 4,000 respectively.Dismantling charges of the old machine, in place of which new machine was purchased, amounted Rs. 10,000. Market value of the machine was estimated at Rs. 1,20,000 on 31st March, 2012. While finalising the annual accounts, A values the machinery at Rs. 1,20,000 in his books.

Q. Which of the following concepts was violated by A?

CA - CPT ICAI Model Test Paper - 2 - Question 22

Mohan purchased goods for Rs. 15,00,000 and sold 4/5th of the goods amounting Rs. 18,00,000 and paid expenses amounting Rs. 2,70,000 during the year, 2009. He paid Rs. 5,000 for an electricity bill of Dec. 2008 and advance salaries amounting Rs. 15,000 was paid for the month of Jan. 2010. He counted net profit as Rs. 3,50,000.The net profit calculated by him is correct according to _________

CA - CPT ICAI Model Test Paper - 2 - Question 23

W Ltd. issued 20,000, 8% debentures of Rs.10 each at par, which are redeemable after 5 years at a premium of 20%. The amount of loss on redemption of debentures to be written off every year will be_________

CA - CPT ICAI Model Test Paper - 2 - Question 24

S Ltd. issued 2,000, 10% Preference shares of Rs.100 each at par, which are redeemable at a premium of 10%. For the purpose of redemption, the company issued 1,500 Equity Shares of Rs.100 each at a premium of 20% per share. At the time of redemption of Preference Shares, the amount to be transferred by the company to the Capital Redemption Reserve Account will be _________

CA - CPT ICAI Model Test Paper - 2 - Question 25

G Ltd. acquired assets worth Rs.7,50,000 from H Ltd. by issue of shares of Rs.100 at a premium of 25%. The number of shares to be issued by G Ltd. to settle the purchase consideration will be_________

CA - CPT ICAI Model Test Paper - 2 - Question 26

Equity share capital called up Rs. 5,00,000
Calls in arrear Rs. 40,000 
Calls in advance Rs. 25,000 
Proposed dividend 15% 
Q. The amount of dividend payable will be

CA - CPT ICAI Model Test Paper - 2 - Question 27

The subscribed share capital of S Ltd. is Rs.80,00,000 of Rs.100 each. There were no calls in arrear till the final call was made. The final call made was paid on 77,500 shares. The calls in arrear amounted to Rs.62,500. The final call on each share will be_________

CA - CPT ICAI Model Test Paper - 2 - Question 28

A Company wishes to earn a 20% profit margin on selling price. Which of the following is the profit mark up on cost, which will achieve the required profit margin?

CA - CPT ICAI Model Test Paper - 2 - Question 29

A, B and C are the partners sharing profits and losses in the ratio of 5:3:2, took a joint life policy of Rs. 30,000. On the death of B what amount will be payable to each partner?

CA - CPT ICAI Model Test Paper - 2 - Question 30

A, B and C were partners in a firm sharing profits and losses in the ratio of 2:2:1 respectively with the capital balance of Rs. 50,000 for A and B, for C Rs. 25,000. B declared to retire from the firm and balance in reserve on the date was Rs. 15,000. If goodwill of the firm was valued as Rs. 30,000 and profit on revaluation was Rs. 7,050 then what amount will be transferred to the loan account of B?

CA - CPT ICAI Model Test Paper - 2 - Question 31

A and B, who share profits and losses in the ratio of 3:2 has the following balances: Capital of A Rs. 50,000; Capital of B Rs. 30,000; Reserve Fund Rs. 15,000. They admit C as a partner, who contributes to the firm Rs. 25,000 for 1/6th share in the partnership. If C is to purchase 1/6th share in the partnership from the existing partners A and B in the ratio of 3:2 for Rs.  5,000 as goodwill find closing capital of C.

CA - CPT ICAI Model Test Paper - 2 - Question 32

P and Q are partners sharing Profits in the ratio of 2:1. R is admitted to the partnership with effect from 1st April on the term that he will bring Rs. 20,000 as his capital for 1/4th share and pays Rs. 9,000 for goodwill, half of which is to be withdrawn by P and Q. How much cash will P & Q withdraw from the firm on account of goodwill?

CA - CPT ICAI Model Test Paper - 2 - Question 33

A and B are partners sharing profits in the ratio 5:3, they admitted C giving him 3/10th share of profit. If C acquires 1/5th share from A and 1/10th from B, new profit sharing ratio will be _________

CA - CPT ICAI Model Test Paper - 2 - Question 34

A, B and C are equal partners. D is admitted to the firm for one-fourth share. D brings Rs. 20,000 capital and Rs. 5,000 being half of the premium for goodwill. The total value of goodwill of the firm is_________

CA - CPT ICAI Model Test Paper - 2 - Question 35

A and B are partners with capitals of Rs. 10,000 and Rs. 20,000 respectively and sharing profits equally. They admitted C as their third partner with one-fourth profits of the firm on the payment of Rs. 12,000. The amount of hidden goodwill is_________

CA - CPT ICAI Model Test Paper - 2 - Question 36

A & B are partners sharing profits and losses in the ratio 5:3. On admission, C brings Rs. 70,000 cash and Rs. 48,000 against goodwill. New profit sharing ratio between A, B and C are 7:5:4. The sacrificing ratio of A:B will be _________

CA - CPT ICAI Model Test Paper - 2 - Question 37

Bill and Monica are partners sharing profits and losses in the ratio of 3:2 having the capital of Rs. 80,000 and Rs. 50,000 respectively. They are entitled to 9% p.a. interest on capital before distributing the profits. During the year firm earned Rs. 7,800 after allowing interest on capital. Profits apportioned among Bill and Monica is _________

CA - CPT ICAI Model Test Paper - 2 - Question 38

A merchant sends out his goods casually to his dealers on approval basis. All such transactions are, however, recorded as actual sales and are passed through the sales book. On 31-12-2009, it was found that 100 articles at a sale price of 200 each sent on approval basis were recorded as actual sales at that price. The sale price was made at cost plus 25%. The amount of inventory on approval at the end of the year will be _________

CA - CPT ICAI Model Test Paper - 2 - Question 39

On 16.6.2010 X draws a bill on Y for Rs 25,000 for 30 days. 19th July 2010 is a public holiday, maturity date of the bill will be:

CA - CPT ICAI Model Test Paper - 2 - Question 40

Bobby sold goods worth Rs 25,000 to Bonny. Bonny immediately accepted a bill on 1.11.09, payable after 2 months. Bobby discounted this bill @ 18% p.a. on 15.11.09. On the due date Bonny failed to discharge the bill. Later on Bonny became insolvent and 50 paise is recovered from Bonny’s estate. How much amount of bad debt will be recorded in the books of Bobby?

CA - CPT ICAI Model Test Paper - 2 - Question 41

Ram’s acceptance to Dinesh for Rs 8,000 renewed for 3 months on the condition that Rs. 4,000 be paid in cash immediately and the remaining amount will carry interest @ 12% p.a. The amount of interest will be _________

CA - CPT ICAI Model Test Paper - 2 - Question 42

A draw s a bill on B for Rs . 30 , 000 . A wants t o endo rs e it to C in s et tlement o f Rs. 35,000 at 2% discount with the help of B’s acceptance and balance in cash. How much cash A will pay to B?

CA - CPT ICAI Model Test Paper - 2 - Question 43

A drew a bill on B for Rs. 50,000 for 3 months. Proceeds are to be shared equally. A got the bill discounted at 12% p.a. and remits required proceeds to B. The amount of such remittance will be _________

CA - CPT ICAI Model Test Paper - 2 - Question 44

A and B enter into a joint venture to underwrite the shares of K Ltd. @ 5% underwritting commission. K Ltd. make an equity issue of 100000 equity shares of Rs 10 each. 80% of the issue are subscribed by the party. The profit sharing ratio between A and B is 3:2. The balance shares not subscribed by the public, purchased by A and B in profit sharing ratio.How many shares to be purchased by A?

CA - CPT ICAI Model Test Paper - 2 - Question 45

R and M entered into a joint venture to purchase and sell new year gifts. They agreed to share the profits and losses equally. R purchased goods worth Rs.1,00,000 and spent Rs.10,000 in sending the goods to M. He also paid Rs. 5,000 for insurance. M spent Rs. 10,000 as selling expenses and sold goods for Rs.2,00,000. Remaining goods were taken over by him at Rs. 5,000. Find out profit on venture.

CA - CPT ICAI Model Test Paper - 2 - Question 46

A and B entered into a Joint Venture. A purchased goods costing Rs. 2,00,000, B sold 4/5th of the same for Rs. 2,50,000. Balance goods were taken over by B at cost less 20%. If same set of books is maintained, find out profit on venture.

CA - CPT ICAI Model Test Paper - 2 - Question 47

If unsold goods costing Rs. 20,000 is taken over by Venturer at Rs. 15,000, the Joint Venture A/c will be credited by:

CA - CPT ICAI Model Test Paper - 2 - Question 48

X of Kolkata sends out goods costing Rs. 1,00,000 to consignee Y of Delhi. 3/5th of the goods were sold by consignee for Rs. 70,000. Commission 2% on sales plus 20% of gross sales less all commission exceeds cost price. The amount of Commission will be:

CA - CPT ICAI Model Test Paper - 2 - Question 49

Rahim of Kolkata sends out 1,000 boxes to Ram of Delhi costing Rs. 100 each at an Invoice Price of Rs. 120 each. Goods send out on consignment to be credited in general trading account will be:

CA - CPT ICAI Model Test Paper - 2 - Question 50

Goods sent out on consignment Rs. 2,00,000. Consignor’s expenses Rs. 5,000. Consignee’s expenses Rs. 2,000. Cash sales Rs. 1,00,000, credit sales Rs. 1,10,000. Consignment inventory Rs. 40,000. Ordinary commission payable to consignee Rs. 3,000. Del-credere commission Rs. 2,000. The amount irrecoverable from customer Rs. 2,000. What will be the profit on consignment?

CA - CPT ICAI Model Test Paper - 2 - Question 51

A of Kolkata sends out 500 boxes to B of Delhi costing Rs. 200 each. Consignor’s expenses Rs 5000. 1/5th of the boxes were still in transit. 3/4th of the goods received by consignee, were sold. The value of goods still in transit will be:

CA - CPT ICAI Model Test Paper - 2 - Question 52

If sales revenue are Rs. 4,00,000; cost of goods sold is Rs. 3,10,000 and operating expenses are Rs.60,000 the gross profit is _________

CA - CPT ICAI Model Test Paper - 2 - Question 53

If sales are Rs. 2,000 and the rate of gross profit on cost of goods sold is 25% , then the cost of goods sold will be _________

CA - CPT ICAI Model Test Paper - 2 - Question 54

Amit Ltd. purchased a machine on 1.1.2009 for Rs. 1,20,000. Installation expenses were Rs.10,000. On 01.07.2009 , expenses for  repairs were  incurred to the extent  of Rs. 2,000. Dep reciation is provided under straight line method. Depreciation rate is 10%. Annual Depreciation will be ________

CA - CPT ICAI Model Test Paper - 2 - Question 55

The long term assets that have no physical existence but are rights that have value is known as

CA - CPT ICAI Model Test Paper - 2 - Question 56

The total cost of goods available for sale with a company during the current year is Rs.12,00,000 and the total sales during the period are Rs.13,00,000. If the gross profit margin of the company is % on cost, the closing inventory during the current year is

CA - CPT ICAI Model Test Paper - 2 - Question 57

CA - CPT ICAI Model Test Paper - 2 - Question 58

When preparing a Bank Reconciliation Statement, if you start with the debit balance as per Cash Book, cheques issued but not presented within the period should be _________

CA - CPT ICAI Model Test Paper - 2 - Question 59

Rs. 200 paid as wages for erecting a machine should be debited to _________

CA - CPT ICAI Model Test Paper - 2 - Question 60

Rs. 2,500 spent on the overhaul of a machine purchased second-hand is _________

CA - CPT ICAI Model Test Paper - 2 - Question 61

The law of contract in India is contained in:

CA - CPT ICAI Model Test Paper - 2 - Question 62

A void agreement is one which is:

CA - CPT ICAI Model Test Paper - 2 - Question 63

Which of the following is false? An acceptance:

CA - CPT ICAI Model Test Paper - 2 - Question 64

A proposal when accepted becomes a

CA - CPT ICAI Model Test Paper - 2 - Question 65

Which of the following statement is false? Consideration:

CA - CPT ICAI Model Test Paper - 2 - Question 66

Which of the following statement is true?

CA - CPT ICAI Model Test Paper - 2 - Question 67

Which of the following statement is true?

CA - CPT ICAI Model Test Paper - 2 - Question 68

On the valid performance of the contractual obligations by the parties, the contract

CA - CPT ICAI Model Test Paper - 2 - Question 69

A contract is discharged by rescission which means the

CA - CPT ICAI Model Test Paper - 2 - Question 70

The Sale of Goods Act, 1930 deals with _________

CA - CPT ICAI Model Test Paper - 2 - Question 71

Which one of the following is/are document of title to goods?

CA - CPT ICAI Model Test Paper - 2 - Question 72

Which one of the following is not true?

CA - CPT ICAI Model Test Paper - 2 - Question 73

In which form of the contract, the property in the goods passes to the buyer immediately:

CA - CPT ICAI Model Test Paper - 2 - Question 74

Which one of the following is not an implied warranty?

CA - CPT ICAI Model Test Paper - 2 - Question 75

A firm is the name of:

CA - CPT ICAI Model Test Paper - 2 - Question 76

A partnership at will is one:

CA - CPT ICAI Model Test Paper - 2 - Question 77

Every partner has the right to:

CA - CPT ICAI Model Test Paper - 2 - Question 78

Which of the following is not disability of an unregistered firm?

CA - CPT ICAI Model Test Paper - 2 - Question 79

Which of the following is not the right of a partner i.e., which he cannot claim as a matter of right?

CA - CPT ICAI Model Test Paper - 2 - Question 80

In case of illegal agreements, the collateral agreements are ___________ .

CA - CPT ICAI Model Test Paper - 2 - Question 81

Consent is not said to be free when it is caused by ____________

CA - CPT ICAI Model Test Paper - 2 - Question 82

Moral pressure is involved in the case of ___________

CA - CPT ICAI Model Test Paper - 2 - Question 83

Sometimes, a party is entitled to claim compensation in proportion to the work done by him. It is possible by a suit for ________

CA - CPT ICAI Model Test Paper - 2 - Question 84

A contract dependent on the happening or non-happening of future uncertain event, is a __________

CA - CPT ICAI Model Test Paper - 2 - Question 85

A agrees to pay Rs. one lakh to B if he brings on earth a star from sky. This is a contingent contract and __________.

CA - CPT ICAI Model Test Paper - 2 - Question 86

As a general rule, an agreement made without consideration is __________

CA - CPT ICAI Model Test Paper - 2 - Question 87

An agreement made with free consent to which the consideration is lawful but inadequate, is ________.

CA - CPT ICAI Model Test Paper - 2 - Question 88

A contract with the minor, which is beneficial for him, is __________

CA - CPT ICAI Model Test Paper - 2 - Question 89

A stipulation in a contract of sale of goods whose violation by seller gives a right of rescission to buyer, is called ____________

CA - CPT ICAI Model Test Paper - 2 - Question 90

The essence of a right of lien is to _________

CA - CPT ICAI Model Test Paper - 2 - Question 91

If a seller handed over the keys of a warehouse containing the goods to the buyer results in ___________

CA - CPT ICAI Model Test Paper - 2 - Question 92

A agrees to deliver his old car valued at Rs. 80,000 to B, a car dealer, in exchange for a new car, and agrees to pay the difference in cash it is _________

CA - CPT ICAI Model Test Paper - 2 - Question 93

A contact for the sale of goods which provide that the property would pass to the buyer on full payment of price and execution of sale deed, is known as ___________

CA - CPT ICAI Model Test Paper - 2 - Question 94

Voluntary transfer of possession by one person to another is popularly known as __________

CA - CPT ICAI Model Test Paper - 2 - Question 95

On the valid performance of the contractual obligations by the parties, the contract

CA - CPT ICAI Model Test Paper - 2 - Question 96

A new partner can be admitted in the firm with the consent of _________

CA - CPT ICAI Model Test Paper - 2 - Question 97

A partner may retire from an existing firm ________

CA - CPT ICAI Model Test Paper - 2 - Question 98

A partnership firm is compulsorily dissolved where ___________

CA - CPT ICAI Model Test Paper - 2 - Question 99

Ram, Rohit and Kiran jointly borrowed Rs. 2,00,000 from Rahim by executing a promissory note. Rohit and Kiran are not traceable. Rahim wants to recover the entire amount from Ram. Ram objected this move by saying he is liable to pay 1/3 of the debt only. Which of the following statement(s) is correct?

CA - CPT ICAI Model Test Paper - 2 - Question 100

A, a Singer agrees with B for his performance at a particular theatre on a specified date.While on his way to the theatre A meets with an accident and is rendered unconscious.Choose the correct statement.

CA - CPT ICAI Model Test Paper - 2 - Question 101

Which of the following statements would you consider to be a normative one?

CA - CPT ICAI Model Test Paper - 2 - Question 102

Consider the following and decide which, if any, economy is without scarcity:

CA - CPT ICAI Model Test Paper - 2 - Question 103

The economic analysis expects the consumer to behave in a manner which is:

CA - CPT ICAI Model Test Paper - 2 - Question 104

After reaching the saturation point, consumption of additional units of the commodity cause:

CA - CPT ICAI Model Test Paper - 2 - Question 105

Consumer surplus is highest in the case of:

CA - CPT ICAI Model Test Paper - 2 - Question 106

If one unit of labour and one unit of capital give 200 units of output, two units of labour and two units of capital give 400 units of output and 5 units of labour and five units of capital give 1000 units of output then this is a case of:

CA - CPT ICAI Model Test Paper - 2 - Question 107

The vertical difference between TVC and TC is equal to:

CA - CPT ICAI Model Test Paper - 2 - Question 108

Price taker firms:

CA - CPT ICAI Model Test Paper - 2 - Question 109

The AR curve and industry demand curve are same:

CA - CPT ICAI Model Test Paper - 2 - Question 110

Which of the following is not, by definition, equal to National Income?

CA - CPT ICAI Model Test Paper - 2 - Question 111

Which of the following is not an objective of Fiscal policy?

CA - CPT ICAI Model Test Paper - 2 - Question 112

The main objective of the World Trade Organisation is to secure among others:

CA - CPT ICAI Model Test Paper - 2 - Question 113

Which one of the following is the best example of agreement between oligopolists?

CA - CPT ICAI Model Test Paper - 2 - Question 114

Which of the following concepts of Budget deficit has become practically redundant in India?

CA - CPT ICAI Model Test Paper - 2 - Question 115

Birth rate and Death rate are measured as per:

CA - CPT ICAI Model Test Paper - 2 - Question 116

Money includes:

CA - CPT ICAI Model Test Paper - 2 - Question 117

—————— pair of commodities is an example of substitutes.

CA - CPT ICAI Model Test Paper - 2 - Question 118

When the price of a substitute of X commodity falls, the demand for X ———.

CA - CPT ICAI Model Test Paper - 2 - Question 119

Marginal utility approach to demand was given by ————————.

CA - CPT ICAI Model Test Paper - 2 - Question 120

While analyzing Marshall’s measure of consumer’s surplus one assumes ——.

CA - CPT ICAI Model Test Paper - 2 - Question 121

The law of variable proportions comes into being when —————.

CA - CPT ICAI Model Test Paper - 2 - Question 122

————— is an implicit cost of production.

CA - CPT ICAI Model Test Paper - 2 - Question 123

Excess capacity is not found under —————.

CA - CPT ICAI Model Test Paper - 2 - Question 124

Stagflation means —————.

CA - CPT ICAI Model Test Paper - 2 - Question 125

—————— is not a direct tax.

CA - CPT ICAI Model Test Paper - 2 - Question 126

————— has been founded to act as permanent watchdog on the international trade.

CA - CPT ICAI Model Test Paper - 2 - Question 127

___________measure usually gives the lowest estimate of unemployment especially for poor economy.

CA - CPT ICAI Model Test Paper - 2 - Question 128

The average profit is the difference between ——————.

CA - CPT ICAI Model Test Paper - 2 - Question 129

At the point of inflexion, the marginal product is  ——————.

CA - CPT ICAI Model Test Paper - 2 - Question 130

Marginal revenue will be negative if elasticity of demand is  ——————.

CA - CPT ICAI Model Test Paper - 2 - Question 131

If lowering of fares reduces railway’s revenues and increasing of fares increases, them the demand for rail travel has a price elasticity of  ——————.

CA - CPT ICAI Model Test Paper - 2 - Question 132

If R point bisects the demand curve in two equal parts, then elasticity at R equals  ———.

CA - CPT ICAI Model Test Paper - 2 - Question 133

(Direction 133 - 135) Read the following table and answer questions.

The following data give the production possibilities frontier of an economy that produces two types of goods, guns and bread.

Table 1: Production Possibilities

 

Q. According to Table 1, the opportunity cost of increasing gun’s production from 20 to 30 units is equal to 

CA - CPT ICAI Model Test Paper - 2 - Question 134

The following data give the production possibilities frontier of an economy that produces two types of goods, guns and bread.

Table 1: Production Possibilities

 

Q. Given the data in Table 1, one moves successively from point A to points B, C, D,E and F, the opportunity cost of guns: 

CA - CPT ICAI Model Test Paper - 2 - Question 135

The following data give the production possibilities frontier of an economy that produces two types of goods, guns and bread.

Table 1: Production Possibilities

 

Q. Point D is efficient while point H (30 guns and 45 loaves of bread) is inefficient. Why?

CA - CPT ICAI Model Test Paper - 2 - Question 136

(Direction 136 - 137) Read the following paragraph and answer questions.

In the Monetary Policy announced for the year 2006-07 the following announcements were made - Bank Rate, Repo Rate, Reverse Repo Rate and Cash Reserve Ratio have been kept unchanged at their present levels of 6 per cent, 6.5 per cent, 5.5 per cent and 5 per cent respectively. These have been kept unchanged as liquidity pressures seen during the last 4 months of 2005-06 have eased off considerably.

 

Q. What is Bank Rate?

CA - CPT ICAI Model Test Paper - 2 - Question 137

In the Monetary Policy announced for the year 2006-07 the following announcements were made - Bank Rate, Repo Rate, Reverse Repo Rate and Cash Reserve Ratio have been kept unchanged at their present levels of 6 per cent, 6.5 per cent, 5.5 per cent and 5 per cent respectively. These have been kept unchanged as liquidity pressures seen during the last 4 months of 2005-06 have eased off considerably.

 

Q. In the given paragraph it is stated that Bank Rate and Cash Reserve Ratio (CRR) have been kept unchanged. What can RBI do if it wants to control credit in the economy?

CA - CPT ICAI Model Test Paper - 2 - Question 138

(Direction 138 - 141) Use Table 2 to answer questions.

“Bozzo’s burgers” is a small restaurant and a price taker. The table below provides the data of Bozzo’s output and costs in Rupees.

 

Q. If burgers sell for Rs. 14 each, what is Bozzo’s profit maximizing level of output?

CA - CPT ICAI Model Test Paper - 2 - Question 139

“Bozzo’s burgers” is a small restaurant and a price taker. The table below provides the data of Bozzo’s output and costs in Rupees.

 

Q. What is the total variable cost when 60 burgers are produced?

CA - CPT ICAI Model Test Paper - 2 - Question 140

“Bozzo’s burgers” is a small restaurant and a price taker. The table below provides the data of Bozzo’s output and costs in Rupees.

 

Q. What is average fixed cost when 20 burgers are produced?

CA - CPT ICAI Model Test Paper - 2 - Question 141

“Bozzo’s burgers” is a small restaurant and a price taker. The table below provides the data of Bozzo’s output and costs in Rupees.

 

Q. Between 10 to 20 burgers, what is the marginal cost (per burger)?

CA - CPT ICAI Model Test Paper - 2 - Question 142

(Direction 142 - 147) Read the follwing question.

In Econoville, there is one grocery shop, Ecoconvenience. It used to sell fresh milk at Rs. 20 per litre, at which price 400 litres of milk were sold per month. After some time, the price was raised to Rs. 30 per litre. Following the price rise:

• Only 200 litres of milk was sold every month.

• The number of boxes of cereal customers bought went down from 280 to 240.

• The number of packets of powered milk customers bought went up from 90 to 220 per month.

 

Q. The price elasticity of demand when fresh milk’s price increases from Rs. 20 per litre to Rs. 30 per litre is equal to: (use Arc Elasticity Method)

CA - CPT ICAI Model Test Paper - 2 - Question 143

In Econoville, there is one grocery shop, Ecoconvenience. It used to sell fresh milk at Rs. 20 per litre, at which price 400 litres of milk were sold per month. After some time, the price was raised to Rs. 30 per litre. Following the price rise:

• Only 200 litres of milk was sold every month.

• The number of boxes of cereal customers bought went down from 280 to 240.

• The number of packets of powered milk customers bought went up from 90 to 220 per month.

 

Q. The cross elasticity of monthly demand for cereal when the price of fresh milk increases from Rs. 20 to Rs. 30 is equal to: 

CA - CPT ICAI Model Test Paper - 2 - Question 144

In Econoville, there is one grocery shop, Ecoconvenience. It used to sell fresh milk at Rs. 20 per litre, at which price 400 litres of milk were sold per month. After some time, the price was raised to Rs. 30 per litre. Following the price rise:

• Only 200 litres of milk was sold every month.

• The number of boxes of cereal customers bought went down from 280 to 240.

• The number of packets of powered milk customers bought went up from 90 to 220 per month.

 

Q. The cross elasticity of monthly demand for powdered milk when the price of fresh milk increases from Rs. 20 to Rs. 30 per litre is equal to: 

CA - CPT ICAI Model Test Paper - 2 - Question 145

In Econoville, there is one grocery shop, Ecoconvenience. It used to sell fresh milk at Rs. 20 per litre, at which price 400 litres of milk were sold per month. After some time, the price was raised to Rs. 30 per litre. Following the price rise:

• Only 200 litres of milk was sold every month.

• The number of boxes of cereal customers bought went down from 280 to 240.

• The number of packets of powered milk customers bought went up from 90 to 220 per month.

 

Q. What can be said about the price elasticity of demand for fresh milk?

CA - CPT ICAI Model Test Paper - 2 - Question 146

In Econoville, there is one grocery shop, Ecoconvenience. It used to sell fresh milk at Rs. 20 per litre, at which price 400 litres of milk were sold per month. After some time, the price was raised to Rs. 30 per litre. Following the price rise:

• Only 200 litres of milk was sold every month.

• The number of boxes of cereal customers bought went down from 280 to 240.

• The number of packets of powered milk customers bought went up from 90 to 220 per month.

 

Q. Suppose income of the residents of Ecoville increases by 50% and the quantity of fresh milk demanded increases by 30%. What is income elasticity of demand for fresh milk?

CA - CPT ICAI Model Test Paper - 2 - Question 147

In Econoville, there is one grocery shop, Ecoconvenience. It used to sell fresh milk at Rs. 20 per litre, at which price 400 litres of milk were sold per month. After some time, the price was raised to Rs. 30 per litre. Following the price rise:

• Only 200 litres of milk was sold every month.

• The number of boxes of cereal customers bought went down from 280 to 240.

• The number of packets of powered milk customers bought went up from 90 to 220 per month.

 

Q. We can say that fresh milk in economic sense is a/an: 

CA - CPT ICAI Model Test Paper - 2 - Question 148

Suppose that a sole proprietorship is earning total revenues of Rs.2,00,000 and is incurring explicit costs of Rs. 1,50,000. If the owner could work for another company for Rs. 60,000 a year, we would conclude that:

CA - CPT ICAI Model Test Paper - 2 - Question 149

(Direction 149 - 150) Use Table 3 to answer questions. 

 

Q. What is the total output when 2 hours of labour are employed?

CA - CPT ICAI Model Test Paper - 2 - Question 150

 

Q. What is the marginal product of the third hour of labour?

CA - CPT ICAI Model Test Paper - 2 - Question 151

Mutually exclusive classification is usually meant for

CA - CPT ICAI Model Test Paper - 2 - Question 152

If log 2 = 0.3010 and log 3 = 0.4771, the value of log5 512 is:

Detailed Solution for CA - CPT ICAI Model Test Paper - 2 - Question 152


                    

CA - CPT ICAI Model Test Paper - 2 - Question 153

Which measure of dispersion is based on all the observations?

CA - CPT ICAI Model Test Paper - 2 - Question 154

If an unbiased coin is tossed once, then the two events Head and Tail are:

CA - CPT ICAI Model Test Paper - 2 - Question 155

If P(A) = P(B), then

CA - CPT ICAI Model Test Paper - 2 - Question 156

As the sample size increases, standard error

CA - CPT ICAI Model Test Paper - 2 - Question 157

The test of shifting the base is called

CA - CPT ICAI Model Test Paper - 2 - Question 158

Which sampling is subjected to the discretion of the sampler?

CA - CPT ICAI Model Test Paper - 2 - Question 159

Scatter diagram helps us to

CA - CPT ICAI Model Test Paper - 2 - Question 160

The point of intersection between the straight lines 3x + 2y = 6 and 3x – y = 12 lie in

CA - CPT ICAI Model Test Paper - 2 - Question 161

 The unit digit in the product (624 * 708 * 913 * 463) is:

Detailed Solution for CA - CPT ICAI Model Test Paper - 2 - Question 161

Unit digit in the given product = Unit Digit in (4*8*3*3) = 8

CA - CPT ICAI Model Test Paper - 2 - Question 162

The logarithm of a number consists of two parts, the whole part or the integral part is called the ______ and the decimal part is called the _______.

CA - CPT ICAI Model Test Paper - 2 - Question 163

If b2–4ac < 0 then the roots are ________.

CA - CPT ICAI Model Test Paper - 2 - Question 164

In ________ receipts/payments takes place forever.

CA - CPT ICAI Model Test Paper - 2 - Question 165

Usually _________ is the best measure of central tendency.

CA - CPT ICAI Model Test Paper - 2 - Question 166

________ are used for measuring central tendency , dispersion & skewness.

CA - CPT ICAI Model Test Paper - 2 - Question 167

If the plotted points in a scatter diagram lie from upper left to lower right, then the correlation is_______.

CA - CPT ICAI Model Test Paper - 2 - Question 168

A small value of “r” indicates only a _________ linear type of relationship between the variables.

CA - CPT ICAI Model Test Paper - 2 - Question 169

The method usually applied for fitting a binomial distribution is known as______.

CA - CPT ICAI Model Test Paper - 2 - Question 170

An index time series is a list of _______ numbers for two or more periods of time.

CA - CPT ICAI Model Test Paper - 2 - Question 171

The following data relate to the marks of a group of students:

 

Q. How many students got marks more than 30?

CA - CPT ICAI Model Test Paper - 2 - Question 172

The following data relate to the incomes of 86 persons :

 

Q. What is the percentage of persons earning more than Rs. 1500?

CA - CPT ICAI Model Test Paper - 2 - Question 173

Value of 2x1/2.3x–1 if x = 4 is

CA - CPT ICAI Model Test Paper - 2 - Question 174

A number between 10 and 100 is five times the sum of its digits. If 9 be added to it the digits are reversed, find the number.

Detailed Solution for CA - CPT ICAI Model Test Paper - 2 - Question 174

Let x be the first digit.
Let y be the second digit.
...
5(x+y)=10x+y ...(i)
5x+5y=10x+y
5y-y=10x-5x
4y=5x ...(ii)
...
The 10x+y is because the x digit is in the ten's column and it is worth more.
...
10x+y+9=10y+x ...(iii)
10x-x+9=10y-y
9x+9=9y

9(x+1)=9y
x+1=y ...(iv)
substitute x+1=y into (ii)
4(x+1)=5x ...(v)
4x+4=5x
4=5x-4x
x=4 
substitute x=4 into (ii)
4y=5(4)
4y=20
y=20/4
y=5
...
The first digit is 4. The second digit is 5.
The number is 45.

CA - CPT ICAI Model Test Paper - 2 - Question 175

An employer recruits experienced (x) and fresh workmen (y) for his firm under the condition that he cannot employ more than 9 people. x and y can be related by the inequality

CA - CPT ICAI Model Test Paper - 2 - Question 176

The sum required to earn a monthly interest of Rs 1200 at 18% per annum Simple Interest is: