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CA - CPT ICAI Model Test Paper - 3


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CA - CPT ICAI Model Test Paper - 3 - Question 1

Financial accounting is concerned with –

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

Manufacturing account is prepared to

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

On March 31, 2010 after sale of goods worth Rs. 2,000, he is left with the closing inventory of Rs. 10,000. This is

CA - CPT ICAI Model Test Paper - 3 - Question 4

Financial statements only consider

CA - CPT ICAI Model Test Paper - 3 - Question 5

Which financial statement represents the accounting equation, Assets = Liabilities + Owner’s equity?

CA - CPT ICAI Model Test Paper - 3 - Question 6

A purchased a car for Rs.5,00,000, making a down payment of Rs. 1,00,000 and signing a Rs. 4,00,000 bill payable due in 60 days.  As a result of this transaction

CA - CPT ICAI Model Test Paper - 3 - Question 7

The debts written off as bad, if recovered subsequently are

CA - CPT ICAI Model Test Paper - 3 - Question 8

A withdrawal of cash from business by the proprietor should be credited to:

CA - CPT ICAI Model Test Paper - 3 - Question 9

Contra entries are passed only when

CA - CPT ICAI Model Test Paper - 3 - Question 10

Consignment account is

CA - CPT ICAI Model Test Paper - 3 - Question 11

Economic life of an enterprise is split into the periodic interval as per ________ concept.

CA - CPT ICAI Model Test Paper - 3 - Question 12

Accounting policies refer to specific accounting ________.

CA - CPT ICAI Model Test Paper - 3 - Question 13

Dividends are usually paid as a percentage of ______

CA - CPT ICAI Model Test Paper - 3 - Question 14

Outgoing partner is compensated for parting with firm’s future profits in favour of remaining partners. The remaining partners contribute to such compensation amount in ______

CA - CPT ICAI Model Test Paper - 3 - Question 15

The balance of the petty cash is ______.

CA - CPT ICAI Model Test Paper - 3 - Question 16

Interest on capital will be paid to the partners if provided for in the agreement but only from________

CA - CPT ICAI Model Test Paper - 3 - Question 17

A proforma invoice is sent by ________

CA - CPT ICAI Model Test Paper - 3 - Question 18

If a venturer draws a bill on his co-venturer and if the drawer discounts the bill with same sets of books maintained, the discounting charges will be borne by________.

CA - CPT ICAI Model Test Paper - 3 - Question 19

X draws a bill on Y. X endorsed the bill to Z. ________will be the payee of the bill.

CA - CPT ICAI Model Test Paper - 3 - Question 20

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

CA - CPT ICAI Model Test Paper - 3 - Question 21

A businessman purchased goods for Rs. 25,00,000 and sold 80% of such goods during the accounting year ended 31st March, 2010. The market value of the remaining goods was Rs. 4,00,000.  He valued the closing inventory at cost.  He violated the concept of

CA - CPT ICAI Model Test Paper - 3 - Question 22

M/s ABC Brothers, which was registered in the year 2008, has been following Straight Line Method (SLM) of depreciation. In the current year it changed its method from Straight Line to Written Down Value (WDV) Method, since such change would result in the additional depreciation of Rs. 200 lakhs as a result of which the firm  would qualify to be declared as a sick industrial unit.  The auditor raised objection to this change in the method of depreciation.

The objection of the auditor is justified because

CA - CPT ICAI Model Test Paper - 3 - Question 23

E Ltd., a dealer in second-hand cars has the following five vehicles of different models and makes in their inventory at the end of the financial year 2009-2010:

 

Q. The value of inventory included in the Balance Sheet of the company as on March 31, 2010 was

CA - CPT ICAI Model Test Paper - 3 - Question 24

Original cost = Rs. 1,26,000; Salvage value = Nil; Useful life = 6 years. Depreciation for the first year under sum of years digits method will be

CA - CPT ICAI Model Test Paper - 3 - Question 25

If sales revenues 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 - 3 - Question 26

Consider the following for Alpha Co. for the year 2009-10:

 

Q. Closing inventory of goods for the year 2009-10 was

CA - CPT ICAI Model Test Paper - 3 - Question 27

A and B entered into a joint venture and purchased a piece of land for Rs 20,000 and sold it for Rs 60,000 in 2010. Originally A had contributed Rs 12,000 and B Rs 8,000. The profit on venture will be

CA - CPT ICAI Model Test Paper - 3 - Question 28

On 1.1.2010 X draws a bill on Y for Rs. 50,000. At maturity, the bill returned dishonoured as Y became insolvent and 40 paise per rupee is recovered from his estate. The amount recovered is:

CA - CPT ICAI Model Test Paper - 3 - Question 29

Average inventory = Rs 12,000. Closing inventory is Rs.  3,000 more than opening inventory.The value of closing inventory will be

CA - CPT ICAI Model Test Paper - 3 - Question 30

Find the goodwill of the firm using capitalization method from the following information: Total Capital Employed in the firm Rs. 8,00,000 Reasonable Rate of Return 15% Profits for the year Rs. 12,00,000

CA - CPT ICAI Model Test Paper - 3 - Question 31

A & B are partners sharing profits and losses in the ratio 5:3. After admission of C, new profit sharing ratio between A, B and C are 7:5:4. The sacrificing ratio among A:B will be

CA - CPT ICAI Model Test Paper - 3 - Question 32

The cash book showed an overdraft of Rs. 1,500, but the pass book made up to the same date showed that cheques of Rs. 100, Rs. 50 and Rs. 125 respectively had not been presented for payments; and the cheque of Rs.400 paid into account had not been cleared. The overdraft balance as per the pass book will be

CA - CPT ICAI Model Test Paper - 3 - Question 33

A second hand machinery is purchased for Rs. 10,000, the amount of Rs. 1,500 is spent on its transportation and Rs. 1,200 is paid for installation. The amount debited to machinery account will be

CA - CPT ICAI Model Test Paper - 3 - Question 34

Consider the following data pertaining to a company for the month of March 2010:

 

Q. The sales of the company during the month are

CA - CPT ICAI Model Test Paper - 3 - Question 35

The accountant of the firm M/s ABC is unable to tally the following trial balance.

 

Q. The above difference in trial balance is due to

CA - CPT ICAI Model Test Paper - 3 - Question 36

The profits of last five years are Rs. 85,000; Rs. 90,000; Rs. 70,000; Rs. 1,00,000 and Rs. 80,000. Find the value of goodwill, if it is calculated on average profits of last five years on the basis of 3 years of purchase.

CA - CPT ICAI Model Test Paper - 3 - Question 37

C Ltd. recorded the following information as on March 31, 2010:

It is noticed that goods worth Rs. 30,000 were destroyed due to fire. Against this, the insurance company accepted a claim of Rs. 20,000.

 

Q. The company sells goods at cost plus %. The value of closing inventory, after taking
into account the above transactions is,

CA - CPT ICAI Model Test Paper - 3 - Question 38

Q. Gross profit will be

CA - CPT ICAI Model Test Paper - 3 - Question 39

Omega Ltd., a listed company, acquired assets worth Rs. 7,50,000 from Alpha Ltd. and issued  shares of Rs. 100 each at premium of 25%. The number of shares to be issued by Omega Ltd. to settle the purchase consideration will be

CA - CPT ICAI Model Test Paper - 3 - Question 40

X sent out certain goods to Y of Delhi. 1/10 of the goods were lost in transit. Invoice value of goods lost Rs. 12,500. Invoice value of goods sent out on consignment will be:

CA - CPT ICAI Model Test Paper - 3 - Question 41

F Ltd. purchased Machinery from G Company for a book value of Rs.4,00,000. The consideration was paid by issue of 10% debentures of Rs.100 each at a discount of 20%. The debenture account was credited with

CA - CPT ICAI Model Test Paper - 3 - Question 42

P Ltd. issued 5,000, 12% debentures of Rs.100 each at a premium of 10% , which are redeemable after 10 years at a premium of 20%. The amount of loss on redemption of debentures to be written off every year is

CA - CPT ICAI Model Test Paper - 3 - Question 43

X and Y share profits and losses in the ratio of 2 : 1. They take Z as a partner and the new profit sharing ratio becomes 3 : 2 : 1.  Z brings Rs. 4,500 as premium for goodwill.  The full value of goodwill will be

CA - CPT ICAI Model Test Paper - 3 - Question 44

The profits of last three years are Rs. 42,000; Rs. 39,000 and Rs. 45,000. Find out the goodwill of two years purchase.

CA - CPT ICAI Model Test Paper - 3 - Question 45

T Ltd. has issued 14% Debentures of Rs.20,00,000 at a discount of 10% on April 01, 2008 and the company pays interest half-yearly on June 30, and December 31 every year.  On March 31, 2010, the amount shown as “interest accrued but not due” in the Balance Sheet will be

CA - CPT ICAI Model Test Paper - 3 - Question 46

A and B enter into a joint venture sharing profit and losses in the ratio 2:1. A purchased goods costing Rs. 2,00,000. B sold the goods for Rs. 2,50,000. A is entitled to get 1% commission on purchase and B is entitled to get 5% commission on sales. The profit on venture will be:

CA - CPT ICAI Model Test Paper - 3 - Question 47

Ashok purchased a machine on 01.01.2010 for Rs 1,20,000. Installation expenses were Rs. 10,000. Residual value after 5 years Rs. 5,000. On 01.07.2010, expenses for repairs were incurred to the extent of Rs 2,000. Depreciation is provided under straight line method.Annual Depreciation is

CA - CPT ICAI Model Test Paper - 3 - Question 48

X draws a bill on Y for Rs . 30, 000. X wants to endo rs e it to W in s ettlement o f Rs 35,000 at 2% discount with the help of Y’s acceptance and balance in cash. How much cash X will pay to Y?

CA - CPT ICAI Model Test Paper - 3 - Question 49

A and B entered into joint venture for equal profits.  A purchased 1,000 kg of rice costing Rs. 200 each. Carriage Rs. 2,000, insurance Rs. 3,000. 4/5th of the boxes were sold by B at Rs. 250 per boxes. Remaining inventory were taken over by B at cost. The amount of inventory taken over will be:

CA - CPT ICAI Model Test Paper - 3 - Question 50

A company sends its cars to dealers on ‘sale or return’ basis.  All such transactions are however treated like actual sales and are passed through the sales day book.  Just before the end of the financial year, two cars which had cost Rs.55,000 each have been sent on ‘sale or return’ and have been debited to customers at Rs.75,000 each, cost of goods lying with the customers will be

CA - CPT ICAI Model Test Paper - 3 - Question 51

Electricity charges paid on 1 October, 2008 for the year to 30 September, 2009 was Rs. 2,400 and electricity charges paid on 1 October, 2009 for the year to 30 September, 2010 was Rs. 3,200.  Electricity charges paid, as shown in the profit and loss account for the year ended 31 December 2009, would be:

CA - CPT ICAI Model Test Paper - 3 - Question 52

Goods costing Rs 2,00,000 sent out to consignee at Cost + 20% . Invoice value of the goods will be

CA - CPT ICAI Model Test Paper - 3 - Question 53

R, J and D are the partners sharing profits in the ratio 7:5:4. D died on 30th June 2010 and profits for the accounting year 2009-2010 were Rs. 24,000. How much share in profits for the period 1st April 2010 to 30th June 2010 will be credited to D’s Account.

CA - CPT ICAI Model Test Paper - 3 - Question 54

X of Kolkata sends out certain goods at cost + 25%. Invoice value of goods sends out Rs. 2,00,000. 4/5th of the goods were sold by consignee at Rs.1,76,000. Commission is 2% upto invoice value and 10% of any surplus above invoice value.The amount of commission will be:

CA - CPT ICAI Model Test Paper - 3 - Question 55

Debit balance as per Cash Book of A B C Enterprises as on 31.3. 2010 is Rs.1,500. Cheques deposited but not cleared amounts to Rs.100 and Cheques issued but not presented is Rs.150. The bank allowed interest amounting Rs. 50 and collected dividend Rs. 50 on behalf of ABC Enterprises. Balance as per pass book should be

CA - CPT ICAI Model Test Paper - 3 - Question 56

If a purchase return of Rs.1,000 has been wrongly posted to the debit of the sales returns account, but has been correctly entered in the suppliers’ account, the total of the

CA - CPT ICAI Model Test Paper - 3 - Question 57

X and Y are partners sharing profits in the ratio 5:3. They admitted Z for 1/5th share of profits, for which he paid Rs. 1,20,000 against capital and Rs. 60,000 against goodwill. Find the capital balances for each partner taking Z’s capital as base capital.

CA - CPT ICAI Model Test Paper - 3 - Question 58

L’s acceptances of Rs . 20, 000 given to A is renewed upon cash payment of Rs. 5,000 and the fresh bill of Rs. 15,100. Journal entry for renewal in the books of A will be __________

CA - CPT ICAI Model Test Paper - 3 - Question 59

A company forfeited 2,000 shares of Rs. 10 each (which were issued at par) held by Mr. John for non-payment of allotment money of Rs. 4 per share. The called-up value per share was Rs.9. On forfeiture, the amount debited to share capital will be __________

CA - CPT ICAI Model Test Paper - 3 - Question 60

X, Y and Z are partners sharing profits in the ratio 2:2:1. On retirement of Y, goodwill was valued as Rs. 30,000. The contribution of X and Z to compensate Y will be __________

CA - CPT ICAI Model Test Paper - 3 - Question 61

Which of the following statement is true?

CA - CPT ICAI Model Test Paper - 3 - Question 62

An offer may lapse by:

CA - CPT ICAI Model Test Paper - 3 - Question 63

Consideration must move at the desire of

CA - CPT ICAI Model Test Paper - 3 - Question 64

Which of the following statements is not true about minor’s position in a firm?

CA - CPT ICAI Model Test Paper - 3 - Question 65

A contract is discharged by novation which means the

CA - CPT ICAI Model Test Paper - 3 - Question 66

When prior to the due date of performance, the promisor absolutely refuses to perform the contract, it is known as

CA - CPT ICAI Model Test Paper - 3 - Question 67

In case of breach of contract, which of the following remedy is available to the aggrieved party?

CA - CPT ICAI Model Test Paper - 3 - Question 68

A voidable contract is one which

CA - CPT ICAI Model Test Paper - 3 - Question 69

A agrees to sell his car worth Rs. 1,00,000 to B for Rs. 20,000 only, and A’s consent was obtained by coercion.  Here, the agreement is

CA - CPT ICAI Model Test Paper - 3 - Question 70

The term “goods” under the Sale of Goods Act, 1930 does not include

CA - CPT ICAI Model Test Paper - 3 - Question 71

Which of the following is not an implied condition in a contract of sale?

CA - CPT ICAI Model Test Paper - 3 - Question 72

Which of the following is not a form of delivery?

CA - CPT ICAI Model Test Paper - 3 - Question 73

Goods which are in existence at the time of the Contract of Sale is known as

CA - CPT ICAI Model Test Paper - 3 - Question 74

The doctrine of Caveat Emptor does not apply, when

CA - CPT ICAI Model Test Paper - 3 - Question 75

If X commissioned Y, an artist, to paint a portrait of A for 200 dollars & Y uses his own canvas and paint then it is

CA - CPT ICAI Model Test Paper - 3 - Question 76

The most important element in partnership is:

CA - CPT ICAI Model Test Paper - 3 - Question 77

On dissolution the partners remain liable to till

CA - CPT ICAI Model Test Paper - 3 - Question 78

Which of the following acts are not included in the implied authority of a partner?

CA - CPT ICAI Model Test Paper - 3 - Question 79

After retirement from firm, which of the following partners is not liable by holding out, even if the public notice of retirement is not given?

CA - CPT ICAI Model Test Paper - 3 - Question 80

An agreement enforceable by law is a __________.

CA - CPT ICAI Model Test Paper - 3 - Question 81

A wrong representation when made without any intention to deceive the other party amounts to ____________.

CA - CPT ICAI Model Test Paper - 3 - Question 82

When the consent of a party is obtained by coercion, undue influence , fraud or misrepresentation, the contract is____________.

CA - CPT ICAI Model Test Paper - 3 - Question 83

A threatens to kill B if he does not agree to sell his scooter to him for Rs. 1,000 only.  Here B’s consent is obtained by __________.

CA - CPT ICAI Model Test Paper - 3 - Question 84

Where the consent of both the parties is given by mistake, the contract is ___________

CA - CPT ICAI Model Test Paper - 3 - Question 85

A mistake as to a law not in force in India has the same effect as ______________.

CA - CPT ICAI Model Test Paper - 3 - Question 86

An agreement, which prevents a person from carrying a lawful business, is ___________.

CA - CPT ICAI Model Test Paper - 3 - Question 87

A agrees to sell his car to B at a price which B may be able to pay.  This agreement is ___________.

CA - CPT ICAI Model Test Paper - 3 - Question 88

An agreement to pay money or money’s worth on the happening or non-happening of a specified uncertain event is a ____________.

CA - CPT ICAI Model Test Paper - 3 - Question 89

Agreement-the meaning of which is uncertain is ________.

CA - CPT ICAI Model Test Paper - 3 - Question 90

The goods are at the risk of a party who has the ____________.

CA - CPT ICAI Model Test Paper - 3 - Question 91

In case of unconditional contract of sale, the property passes to the buyer at the time of making the contract.  For this rule to apply, the goods must be ___________.

CA - CPT ICAI Model Test Paper - 3 - Question 92

In case of sale of unascertained goods, the ownership is transferred to the buyer when the goods are _________.

CA - CPT ICAI Model Test Paper - 3 - Question 93

In case of sale on approval, the ownership is transferred to the buyer when he _________.

CA - CPT ICAI Model Test Paper - 3 - Question 94

The bidder at an auction sale can withdraw his bid __________.

CA - CPT ICAI Model Test Paper - 3 - Question 95

A partner can retire on_____________.

CA - CPT ICAI Model Test Paper - 3 - Question 96

Death of partner has the effect of____________.

CA - CPT ICAI Model Test Paper - 3 - Question 97

The reconstitution of the firm takes place in case of __________

CA - CPT ICAI Model Test Paper - 3 - Question 98

A partner may be expelled from the firm on the fulfillment of the condition that the expulsion power is exercised ______________.

CA - CPT ICAI Model Test Paper - 3 - Question 99

A contracts with B to buy a necklace, believing it is made of pearls whereas in fact it is made of imitation pearls of no value.  B knows that A is mistaken and takes no steps to correct the error.  Now A wants to cancel the contract on the basis of fraud.  Which of the following statement is correct?

CA - CPT ICAI Model Test Paper - 3 - Question 100

A timber merchant agreed to supply best teak at a certain agreed price to a builder.  Later the merchant supplied timber which was identified as ordinary class of timber and demanded the payment from the builder.  Which of the following statements is/are true?

CA - CPT ICAI Model Test Paper - 3 - Question 101

Which of the following statements is correct?

CA - CPT ICAI Model Test Paper - 3 - Question 102

The green revolution is also known as:

CA - CPT ICAI Model Test Paper - 3 - Question 103

Which of the following has been specifically established to meet the requirements of credit of the farmers and villagers?

CA - CPT ICAI Model Test Paper - 3 - Question 104

Per capita national income means

CA - CPT ICAI Model Test Paper - 3 - Question 105

In the theory of demographic transition in the last stage,

CA - CPT ICAI Model Test Paper - 3 - Question 106

Work force refers to that part of:

CA - CPT ICAI Model Test Paper - 3 - Question 107

According to National Sample Survey Organisation (NSSO) during 2011-12

CA - CPT ICAI Model Test Paper - 3 - Question 108

Electricity generated from radio active elements is called:

CA - CPT ICAI Model Test Paper - 3 - Question 109

FRBM Act stands for:

CA - CPT ICAI Model Test Paper - 3 - Question 110

The pre-condition for privatization to be successful requires:

CA - CPT ICAI Model Test Paper - 3 - Question 111

Which of the following is also known as Internatio nal Bank for Reconstruction and Development?

CA - CPT ICAI Model Test Paper - 3 - Question 112

Fiscal policy means:

CA - CPT ICAI Model Test Paper - 3 - Question 113

Money in traditional sense:

CA - CPT ICAI Model Test Paper - 3 - Question 114

Narrow money refers to:

CA - CPT ICAI Model Test Paper - 3 - Question 115

Which of the following statements about banks is incorrect?

CA - CPT ICAI Model Test Paper - 3 - Question 116

Who is the official “lender of the last resort” in India?

CA - CPT ICAI Model Test Paper - 3 - Question 117

Since Independence the share of industrial sector in the GDP of India has ___________.

CA - CPT ICAI Model Test Paper - 3 - Question 118

Three steel plants in Bhilai, Rourkela and Durgapur were set up in the __________.

CA - CPT ICAI Model Test Paper - 3 - Question 119

The annual addition to the country’s population is almost equal to the total population of ___________.

CA - CPT ICAI Model Test Paper - 3 - Question 120

India’s passing through _________ stage of demographic transition.

CA - CPT ICAI Model Test Paper - 3 - Question 121

At present only __________ industries are reserved for the public sector.

CA - CPT ICAI Model Test Paper - 3 - Question 122

At present, 100 percent FDI is allowed in  __________.

CA - CPT ICAI Model Test Paper - 3 - Question 123

When due to introduction of new machinery, some workers tend to be replaced by machines, their unemployment is termed as __________.

CA - CPT ICAI Model Test Paper - 3 - Question 124

Most of the unemployment in India is __________.

CA - CPT ICAI Model Test Paper - 3 - Question 125

Rural bank branches constitute __ percent of total bank branches in India. (as on June 2012)

CA - CPT ICAI Model Test Paper - 3 - Question 126

A study of how increases in the corporate income tax rate will affect the national unemployment rate is an example of__________.

CA - CPT ICAI Model Test Paper - 3 - Question 127

If the marginal (additional) opportunity cost is a constant then the PPC would be __________.

CA - CPT ICAI Model Test Paper - 3 - Question 128

If a good is a luxury, its income elasticity of demand is__________.

CA - CPT ICAI Model Test Paper - 3 - Question 129

In the case of a Giffen good, the demand curve will be __________.

CA - CPT ICAI Model Test Paper - 3 - Question 130

__________ is also known as planning curve.

CA - CPT ICAI Model Test Paper - 3 - Question 131

If increasing air fares increases revenues and decreasing them decreases revenues, then the demand for air travel has a price elasticity of:

CA - CPT ICAI Model Test Paper - 3 - Question 132

When __________, we know that the firms must be producing at the minimum point of the average cost curve and so there will be productive efficiency.

CA - CPT ICAI Model Test Paper - 3 - Question 133

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

Figure 1 gives the production possibilities frontier of an economy that produces two types of goods, guns and bread.

 

Q. Which point on the PPF shows a productively efficient level of output?

CA - CPT ICAI Model Test Paper - 3 - Question 134

Figure 1 gives the production possibilities frontier of an economy that produces two types of goods, guns and bread.

 

Q. Which of the following clearly represents a movement toward greater productive efficiency? 

CA - CPT ICAI Model Test Paper - 3 - Question 135

Figure 1 gives the production possibilities frontier of an economy that produces two types of goods, guns and bread.

 

Q. Which of the following illustrates a decrease in unemployment using the PPF?

CA - CPT ICAI Model Test Paper - 3 - Question 136

(Direction 136 - 137) Read the para below and answer questions.

It was the World Trade Organisation (WTO) which gave a real push to the process of globalization. The World Trade Organisation came into existence on 1st January 1995. It is a powerful body which aims at making the whole world a big village where there is a free flow of goods and services and there is no barrier to trade. At its heart are the WTO agreements, negotiated and signed by the bulk of the world’s trading nations.

 

Q. What is globalization?

CA - CPT ICAI Model Test Paper - 3 - Question 137

It was the World Trade Organisation (WTO) which gave a real push to the process of globalization. The World Trade Organisation came into existence on 1st January 1995. It is a powerful body which aims at making the whole world a big village where there is a free flow of goods and services and there is no barrier to trade. At its heart are the WTO agreements, negotiated and signed by the bulk of the world’s trading nations.

 

Q. Which of the following is false about WTO?

CA - CPT ICAI Model Test Paper - 3 - Question 138

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

A competitive firm sells as much as of its product as it chooses at a market price of Rs. 100 per unit. Its fixed cost is Rs. 300 and its variable costs (in rupees) for different levels of production are shown in the following table.

Q. When production is 40 units, the average total cost is

CA - CPT ICAI Model Test Paper - 3 - Question 139

A competitive firm sells as much as of its product as it chooses at a market price of Rs. 100 per unit. Its fixed cost is Rs. 300 and its variable costs (in rupees) for different levels of production are shown in the following table.

 

Q. In the table marginal cost per unit that corresponds to 40 units of production is

CA - CPT ICAI Model Test Paper - 3 - Question 140

A competitive firm sells as much as of its product as it chooses at a market price of Rs. 100 per unit. Its fixed cost is Rs. 300 and its variable costs (in rupees) for different levels of production are shown in the following table.

 

Q. To maximize profit, the firm should produce

CA - CPT ICAI Model Test Paper - 3 - Question 141

A competitive firm sells as much as of its product as it chooses at a market price of Rs. 100 per unit. Its fixed cost is Rs. 300 and its variable costs (in rupees) for different levels of production are shown in the following table.

 

Q. If the market price drops from Rs 100 to Rs 56, the firm’s short run response should be

CA - CPT ICAI Model Test Paper - 3 - Question 142

(Direction 142 - 147) Read the following data and answer Questions.

A shopkeeper sells gel pen at Rs. 10 per pen. At this price he can sell 120 per month.
After some time, he raises the price to Rs. 15  per pen. Following the price rise:

• Only 60 pens were sold every month.

• The number of refills bought went down from 200 to 150.

• The number of ink pen customers bought went up from 90 to 180 per month.

 

Q. The price elasticity of demand when gel pen’s price increases from Rs. 10 per pen to Rs. 15 per pen is equal to: (use arc Elasticity Method)

CA - CPT ICAI Model Test Paper - 3 - Question 143

A shopkeeper sells gel pen at Rs. 10 per pen. At this price he can sell 120 per month.
After some time, he raises the price to Rs. 15  per pen. Following the price rise:

• Only 60 pens were sold every month.

• The number of refills bought went down from 200 to 150.

• The number of ink pen customers bought went up from 90 to 180 per month.

 

Q. The cross elasticity of monthly demand for refills when the price of gel pen increase from Rs. 10 to Rs.15 is equal to:

CA - CPT ICAI Model Test Paper - 3 - Question 144

A shopkeeper sells gel pen at Rs. 10 per pen. At this price he can sell 120 per month.
After some time, he raises the price to Rs. 15  per pen. Following the price rise:

• Only 60 pens were sold every month.

• The number of refills bought went down from 200 to 150.

• The number of ink pen customers bought went up from 90 to 180 per month.

 

Q. The cross elasticity of monthly demand for ink pen when the price of gel pen increases from Rs. 10 to Rs. 15 is equal to:

CA - CPT ICAI Model Test Paper - 3 - Question 145

A shopkeeper sells gel pen at Rs. 10 per pen. At this price he can sell 120 per month.
After some time, he raises the price to Rs. 15  per pen. Following the price rise:

• Only 60 pens were sold every month.

• The number of refills bought went down from 200 to 150.

• The number of ink pen customers bought went up from 90 to 180 per month.

 

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

CA - CPT ICAI Model Test Paper - 3 - Question 146

A shopkeeper sells gel pen at Rs. 10 per pen. At this price he can sell 120 per month.
After some time, he raises the price to Rs. 15  per pen. Following the price rise:

• Only 60 pens were sold every month.

• The number of refills bought went down from 200 to 150.

• The number of ink pen customers bought went up from 90 to 180 per month.

 

Q. Suppose income of the residents of locality increases by 50% and the quantity of gel pens demanded increases by 20%. What is income elasticity of demand for gel pen?

CA - CPT ICAI Model Test Paper - 3 - Question 147

A shopkeeper sells gel pen at Rs. 10 per pen. At this price he can sell 120 per month.
After some time, he raises the price to Rs. 15  per pen. Following the price rise:

• Only 60 pens were sold every month.

• The number of refills bought went down from 200 to 150.

• The number of ink pen customers bought went up from 90 to 180 per month.

 

Q. We can say that gel pen in economics sense is a/an

CA - CPT ICAI Model Test Paper - 3 - Question 148

Suppose that a sole proprietorship is earning total revenues of Rs.120,000 and is incurring explicit costs of Rs 90,000. If the owner could work for another company for Rs.50,000 a year, we would conclude that:

CA - CPT ICAI Model Test Paper - 3 - 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 - 3 - Question 150

 

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

CA - CPT ICAI Model Test Paper - 3 - Question 151

Statistics is concerned with

CA - CPT ICAI Model Test Paper - 3 - Question 152

For any two numbers Standard Deviation is always

CA - CPT ICAI Model Test Paper - 3 - Question 153

Bivariate Data are the data collected for

CA - CPT ICAI Model Test Paper - 3 - Question 154

Karl Pearson’s coefficient is defined from

CA - CPT ICAI Model Test Paper - 3 - Question 155

An experiment is known to be random if the results of the experiment

CA - CPT ICAI Model Test Paper - 3 - Question 156

A theoretical probability distribution

CA - CPT ICAI Model Test Paper - 3 - Question 157

Poisson distribution may be

CA - CPT ICAI Model Test Paper - 3 - Question 158

Standard error can be described as

CA - CPT ICAI Model Test Paper - 3 - Question 159

P01 is the index for time

CA - CPT ICAI Model Test Paper - 3 - Question 160

The present value of an annuity of Rs. 3,000 for 15 years at 4.5% p.a CI is

CA - CPT ICAI Model Test Paper - 3 - Question 161

If b2– 4ac >0 then the roots are ______ and ______.

CA - CPT ICAI Model Test Paper - 3 - Question 162

If an investment of Rs. 60,000 and Rs. 70,000 respectively yields an income of Rs. 5,750 Rs. 6,500 an investment of Rs. 90,000 would yield income of Rs. ___________

CA - CPT ICAI Model Test Paper - 3 - Question 163

In ______ ways can 4 Americans and 4 English men be seated at a round table so that no 2 Americans may be together.

CA - CPT ICAI Model Test Paper - 3 - Question 164

The last term of the series x², x, 1, …. to 31 terms is _______.

CA - CPT ICAI Model Test Paper - 3 - Question 165

The sum of all natural numbers between 200 and 400 which are divisible by 7 is ______.

CA - CPT ICAI Model Test Paper - 3 - Question 166

An Ogive can be prepared in ______ different ways.

CA - CPT ICAI Model Test Paper - 3 - Question 167

Mutually inclusive classification is usually meant for______.

CA - CPT ICAI Model Test Paper - 3 - Question 168

______ is an absolute measure of dispersion.

CA - CPT ICAI Model Test Paper - 3 - Question 169

For finding the degree of agreement about beauty between two Judges in a Beauty Contest, we use______.

CA - CPT ICAI Model Test Paper - 3 - Question 170

Probability density function is always ______.

CA - CPT ICAI Model Test Paper - 3 - Question 171

The value of  is

CA - CPT ICAI Model Test Paper - 3 - Question 172

The equation –7x + 1 = 5 – 3x will be satisfied for x equal to

CA - CPT ICAI Model Test Paper - 3 - Question 173

The sum of two numbers is 52 and their difference is 2. The numbers are

CA - CPT ICAI Model Test Paper - 3 - Question 174

In what time will Rs. 85,000 amount to Rs. 1,57,675 at 4.5% p.a.Simple Interest?

CA - CPT ICAI Model Test Paper - 3 - Question 175

On what sum will the compound interest at 5% per annum for two years compounded annually be Rs. 1,640?

CA - CPT ICAI Model Test Paper - 3 - Question 176

Find the future value of an annuity of Rs.500 is made annually for 7 years at interest rate of 14% compounded annually.  Given that (1.14)7 = 2.5023.