CA - CPT ICAI Model Test Paper - 4 | 200 Questions MCQ Test CA CPT - Mock Test Series and Previous Year Question Papers CA CPT

QUESTION: 1

In the books of manufacturing concern, opening inventory consists of

A.
Raw materials
B.
Work-in-progress
C.
Finished goods
D.
All of the above

Solution:

QUESTION: 2

When adjusted purchase is shown on the debit column of the trial balance then

A.
Both opening stock and closing inventory do not appear in the trial balance
B.
Closing inventory is shown in the trial balance and not the opening inventory
C.
Opening inventory is shown in the trial balance and not the closing inventory
D.
Both opening and closing inventory appear in the trial balance

Solution:

QUESTION: 3

Following is the example of external users of financial statements:

A.
Government
B.
Owners
C.
Management
D.
Employees

Solution:

QUESTION: 4

“Business unit is separate and distinct from the person who supply capital to it”, is based on

A.
Money measurement concept
B.
Going concern concept
C.
Business entity concept
D.
Dual aspect concept

Solution:

QUESTION: 5

State the case where the going concern concept is applied?

A.
When an enterprise was set up for a particular purpose, which has been achieved, or to be achieved shortly
B.
When a receiver or liquidator has been appointed in case of a company which is to be liquidated
C.
Fixed assets are acquired for use in the business for earning revenues and are not meant for resale
D.
When an enterprise is declared sick

Solution:

QUESTION: 6

If two or more transactions of the same nature are journalised together having either the debit or the credit account common is known as

A.
Compound journal entry
B.
Separate journal entry
C.
Posting
D.
None of the above

Solution:

QUESTION: 7

If the cheque issued is not presented for the payment upto the date of the preparation of the Bank Reconciliation Statement, then the balance as per Pass Book will be

A.
Higher than the balance shown by the cashbook by the amount of unpresented cheque
B.
Lower than the balance shown by the cashbook by the amount of unpresented cheque
C.
Same as shown by the cashbook
D.
None of the above

Solution:

QUESTION: 8

Whenever errors are noticed in the accounting records, they should be rectified

A.
At the time of preparation of the trial balance
B.
Without waiting the accounting year to end
C.
After the preparation of final accounts
D.
In the next accounting year

Solution:

QUESTION: 9

Parties to a bill of exchange are

A.
Drawer
B.
Drawee
C.
Payee
D.
All of the above

Solution:

QUESTION: 10

All the expenditures and receipts of revenue nature go to

A.
Trading account
B.
Profit and loss account
C.
Balance Sheet
D.
Either to (a) or (b)

Solution:

QUESTION: 11

A _______ is sent to a customer when he returns the goods.

A.
Debit note
B.
Credit note
C.
Proforma invoice
D.
None of the above

Solution:

QUESTION: 12

Noting charges are paid at the time of _______ of a bill.

A.
Retirement
B.
Renewal
C.
Dishonour
D.
None of the above

Solution:

QUESTION: 13

Depreciation of fixed assets is an example of _______ expenditure.

A.
Revenue
B.
Deferred revenue
C.
Capital
D.
None of the above

Solution:

QUESTION: 14

Interest on drawings is _______ for the business.

A.
Loss
B.
Expense
C.
Gain
D.
None of the three

Solution:

QUESTION: 15

An amount of Rs.200 received from A credited to B would affect _______

A.
Accounts of A and B both
B.
A’s account only
C.
Cash account
D.
B’s account only

Solution:

QUESTION: 16

As per section 12 of Negotiable Instruments Act, which of the following is not a foreign bill?

A.
A bill drawn outside India and made payable outside India
B.
A bill drawn outside India and made payable in India
C.
A bill drawn outside India on a person resident in India
D.
A bill drawn in India on a person resident outside India and made payable outside India

Solution:

QUESTION: 17

In _______ method, depreciation is charged by allocating depreciable cost in proposition of the annual output to the probable life-time output.

A.
Working hours method
B.
Replacement method
C.
Revaluation method
D.
Production units method

Solution:

QUESTION: 18

General reserve at the time of admission of a new partner is transferred to ______.

A.
Profit and Loss adjustment Account
B.
Old partners’ capital accounts
C.
Revaluation account
D.
Memorandum revaluation account

Solution:

QUESTION: 19

A suspense account facilitates the preparation of ______ even when the ______ has not tallied.

A.
Ledgers; Trial balance
B.
Financial statements; Trial Balance
C.
Trial balance; Financial statements
D.
Journal; Trial balance

Solution:

QUESTION: 20

Recording of a transaction in the ledger is called ______.

A.
Costing
B.
Balancing
C.
Journalizing
D.
Posting

Solution:

QUESTION: 21

Accounting has certain norms to be observed by the accountants in recording of transactions and preparation of financial statements. These norms reduce the vagueness and chances of misunderstanding by harmonizing the varied accounting practices. These norms are

A.
Accounting regulations
B.
Accounting notes
C.
Accounting standards
D.
Accounting framework

Solution:

QUESTION: 22

RPG Ltd. purchased equipment from PQR Ltd. for Rs.50,000 on 1^st April, 2009. The freight and cartage of Rs.2,000 is spent to bring the asset to the factory and Rs.3,000 is incurred on installing the equipment to make it possible for the intended use. The market price of machinery on 30^th April, 2010 is Rs.60,000 and the accountant of the company wants to disclose the machinery at Rs.60,000 in financial statements. However, the auditor emphasizes that the machinery should be valued at Rs.55,000 (50,000+2,000+3,000) according to:

A.
Money measurement principle
B.
Historical cost concept
C.
Full disclosure principle
D.
Revenue recognition

Solution:

QUESTION: 23

Mr. A started a business on 1^stJanuary 2009 with Rs. 5,00,000. During the year he bought goods worth Rs. 1,00,000 on credit and sold 80% of the same goods at profit of 20% on cost.At the end of the year 2009, the amount of opening inventory to be shown in the trial balance of Mr. A will be

A.
Rs. 20,000
B.
Rs. 24,000
C.
Rs. 1,00,000
D.
Nil

Solution:

QUESTION: 24

Trade receivables on 31^st March 20 10 are Rs.5 5,200 . Further bad debts are Rs.2 00.Provision for doubtful debts are to be made on Trade receivables @ 5% and also provision of discount is to be made on Trade receivables @ 2%. The amount of provision of doubtful debts will be

A.
Rs.1,045
B.
Rs.2,750
C.
Rs.1,100
D.
Rs.2,760

Solution:

QUESTION: 25

A firm purchases a 5 years’ lease for Rs. 40,000 on 1^st January. It decides to write off depreciation on the Annuity method, presuming the rate of interest to be 5% per annum.The annuity for it is 0.230975. The amount of annual depreciation will be

A.
Rs. 8,000
B.
Rs. 2,000
C.
Rs. 9,239
D.
Rs. 6,000

Solution:

QUESTION: 26

The balance of machine on 31^stMarch 2010 is Rs.72,900 (after charging depreciation of the year). The machine was purchased on 1st April 2007 charging depreciation @10% p.a. by diminishing balance method. The cost price of the machine as on 1^st April 2007 would be

A.
Rs. 1,00,000
B.
Rs. 90,000
C.
Rs. 81,000
D.
Rs. 72,900

Solution:

QUESTION: 27

On May 01, 2009, Y Ltd. issued 7% 40,000 convertible debentures of Rs.100 each at a premium of 20%. Interest is payable on September 30 and March 31, every year.Assuming that the interest runs from the date of issue, the amount of interest expenditure debited to Profit and Loss Account for the year ended March 31, 2010 will be

A.
Rs. 2,80,000
B.
Rs. 2,33,333
C.
Rs. 3,36,000
D.
Rs.2,56,667

Solution:

QUESTION: 28

A company cannot issue redeemable preference shares (not issued for infrastructure projects) for a period exceeding

A.
6 years
B.
7 years
C.
8 years
D.
20 years

Solution:

QUESTION: 29

E Ltd. had allotted 10,000 shares to the applicants of 14,000 shares on pro-rata basis. The amount payable on application is Rs.2. F applied for 420 shares. The number of shares allotted and the amount carried forward for adjustment against allotment money due from F will be

A.
60 shares; Rs.120
B.
340 shares; Rs.160
C.
320 shares; Rs.200
D.
300 shares; Rs.240

Solution:

QUESTION: 30

Z Ltd. issued 10,000 shares of Rs.10 each. The called up value per share was Rs.8. The company forfeited 200 shares of Mr. A for non-payment of 1st call money of Rs.2 per share. He paid Rs.6 for application and allotment money. On forfeiture, the share capital account will be _________.

A.
Debited by Rs. 2,000
B.
Debited by Rs. 1,600
C.
Credited by Rs. 1,600
D.
Debited by Rs. 1,200

Solution:

QUESTION: 31

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

A.
Rs. 6,000
B.
Rs. 1,500
C.
Nil
D.
Rs. 2,000

Solution:

QUESTION: 32

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

A.
Rs.1,10,000
B.
Rs. 55,000
C.
Rs. 75,000
D.
None of the above

Solution:

QUESTION: 33

A second hand car is purchased for Rs. 10,000, the amount of Rs. 1,000 is spent on its repairs, Rs. 500 is incurred to get the car registered in owner’s name and Rs. 1,200 is paid as dealer’s commission. The amount debited to car account will be

A.
Rs. 10,000
B.
Rs. 10,500
C.
Rs. 11,500
D.
Rs. 12,700

Solution:

QUESTION: 34

A bill of Rs. 12,000 was discounted by A with the banker for Rs. 11,880. At maturity, the bill returned dishonoured, noting charges Rs 20. How much amount will the bank deduct from A’s bank balance at the time of such dishonour?

A.
Rs. 12,000
B.
Rs. 11,880
C.
Rs. 12,020
D.
Rs. 11,900

Solution:

QUESTION: 35

In a joint venture between A and B, A purchased goods costing Rs.42,500. B sold goods costing Rs. 40,000 at Rs. 50,000. Balance goods were taken over by A at same gross profit percentage as in case of sale. The amount of goods taken over by A will be:

A.
Rs. 3,125
B.
Rs. 2,500
C.
Rs. 3,000
D.
None of the above

Solution:

QUESTION: 36

Mr. X is a partner in a firm. He withdraws Rs.200 at the end of each month. If rate of interest on drawings is @ 5% p.a., the interest on drawings is

A.
Rs. 65
B.
Rs. 55
C.
Rs. 60
D.
Rs. 50

Solution:

QUESTION: 37

Mohan and Sohan are partners in a firm sharing profits and losses in the ratio 5:3. The firm earned profits during last four years amounting Rs.18,000, Rs.8,500 (loss), Rs.30,000 and Rs.16,500 respectively. The value of goodwill on the basis of one and a half year’s purchase of average profits of last four years will be

A.
Rs.14,000
B.
Rs.27,375
C.
Rs.21,000
D.
Nil

Solution:

QUESTION: 38

A to whom 100 shares of Rs.10 each was allotted at par, paid Rs.3 on application, Rs.3 on allotment but could not pay the first and final call money of Rs.4. His shares were forfeited by the directors. The amount to be credited to shares forfeited account will be

A.
Rs.500
B.
Rs.400
C.
Rs.600
D.
Rs.1,000

Solution:

QUESTION: 39

Balance as per cash book is Rs. 5,000. Cheques issued but not presented for payment debited the account of firm by Rs. 20. Balance as per pass book will be

A.
Rs. 5,500
B.
Rs. 5,480
C.
Rs. 5,700
D.
Rs. 8,300

Solution:

QUESTION: 40

Following are the extracts from the trial balance of a firm as on 31^stDecember, 2009:

A.
Rs. 1,800
B.
Rs. 900
C.
Rs. 450
D.
None of the above

Solution:

QUESTION: 41

Following are the extracts from the Trial Balance of a firm as on 31^stDecember, 2009.

(i) After preparing the trial balance, it is learnt that a customer, Mohan became insolvent and therefore, the entire amount of Rs.3,000 due from him was irrecoverable.

(ii) 10% provision for bad and doubtful debts is generally created.
The amount of provision for bad and doubtful debts to be charged to profit and loss account will be

A.
Rs. 3,000
B.
Rs. 2,700
C.
Rs. 2,500
D.
None of the three

Solution:

QUESTION: 42

A and B are partners in a firm. During the year 2009, A withdrew Rs.1,000 p.m. and B withdraw Rs.500 p.m. on the first day of each month for personal use. Interest on drawings is to be charged @ 10% p.a. The interest on drawings will be

A.
Rs. 650
B.
Rs. 975
C.
Rs. 900
D.
Rs. 1,800

Solution:

QUESTION: 43

A and B are partners in a firm sharing profits and losses in the ratio of 3:2. They have invested capitals of Rs.40,000 and Rs.25,000 respectively. As per the partnership deed, they are entitled to interest on capital @ 5% p.a. before dividing the profits. During the year, the firm earned a profit of Rs.3,900 before allowing interest. The net profit will be apportioned as

A.
Rs.260 to A and Rs.390 to B
B.
Rs.390 to A and Rs.260 to B
C.
Rs.2,340 to A and Rs.1,560 to B
D.
Rs.1,560 to A and Rs.2,340 to B

Solution:

QUESTION: 44

Our acceptance to Mr. A for Rs.8,000 renewed for 3 months on the condition that Rs.2,000 is paid in cash immediately and the new bill to be drawn for remaining balance to carry out interest at 18% p.a. The amount of the renewed bill of exchange will be

A.
Rs.6,270
B.
Rs.8,270
C.
Rs.8,000
D.
None of the three

Solution:

QUESTION: 45

Advertisement expenditure of Rs.10,000 paid on 30.12.2009, the advertisement in respect of which has appeared in the magazines of January, 2010.This expenditure will be

A.
Shown as ‘expense’ in the financial statements of the year ended 31^st December, 2009
B.
Shown as ‘liability’ in the financial statements of the year ended 31^stDecember, 2009
C.
Shown as prepaid expense in the financial statements of the year ended 31^st December, 2009
D.
None of the three

Solution:

QUESTION: 46

On 1^stJanuary, 2009, Alpha Ltd. purchased a machine for Rs.50,000 and spent Rs.4,000 on its carriage and Rs.2,000 on its installation. On the date of purchase, it was estimated that the effective life of the machine will be 10 years and after 10 years its scrap value will be Rs.6,000. Depreciation is charged on straight line basis. Depreciation for the year 2009 will be

A.
Rs.4,600
B.
Rs.5,000
C.
Rs.4,800
D.
Rs.4,500

Solution:

QUESTION: 47

Ram and Gopal are partners sharing profits and losses in the ratio of 2:1. Gopal gave a loan of Rs.12,000 to the firm. They did not have any specific agreement about interest on loan mentioned in the partnership deed. Gopal claims interest on loan @ 10% p.a. The interest on loan as per the rules of the Partnership Act, 1932 will be:

A.
Rs.840
B.
Rs.820
C.
Rs.720
D.
Rs.960

Solution:

QUESTION: 48

Mr. A is a partner in a firm along with Mr. B. Both contributed capitals of Rs.40,000 and Rs.50,000 respectively on the 1^st of July, 2009. Interest on capital is to be charged @ 10% p.a. Books of account are to be closed on 31^st December, 2009. Interest on capital is

A.
Rs.2,500
B.
Rs.2,000
C.
Rs.4,500
D.
None of the above

Solution:

QUESTION: 49

A firm has an average profit of Rs.60,000. Rate of return on capital employed is 12.5% p.a.Total capital employed in the firm was Rs.4,00,000. Goodwill on the basis of two years purchase of super profits is

A.
Rs.20,000
B.
Rs.15,000
C.
Rs.10,000
D.
None of the above

Solution:

QUESTION: 50

A transport company purchases a truck for Rs.2,00,000 on 1^st January, 2009. It charges 20% depreciation p.a. according to w.d.v. method. The truck was sold on 1^st July, 2010 for a sum of Rs.1,60,000.The profit or loss on sale of truck is

A.
Loss of Rs. 16,000
B.
Profit of Rs. 16,000
C.
Profit of Rs. 12,000
D.
Loss of Rs. 12,000

Solution:

QUESTION: 51

Ram started business with cash Rs.50,000 Purchased goods from Mohan on credit Rs.20,000 Sold goods to Shyam (costing Rs.3,000) for cash Rs.3,600 The accounting equation on the basis of the above transactions will be

A.
Assets Rs.70,600 = Laibilities Rs.3,600+Owner ’s equity Rs.67,000
B.
Assets Rs.70,600 = Liabilities Rs.50,600+Owner ’s equity Rs.20,000
C.
Assets Rs.70,600= Liabilities Rs.20,000+Owner ’s equity Rs.50,600
D.
None of the three

Solution:

QUESTION: 52

Value of physical inventory on 15.4.2010 was Rs.3,00,000. Sales amounting Rs.1,00,000 and purchases worth Rs.50,000 were held between 31.3.2010 and 15.4.2010. Goods are sold at a profit of 20% on sales. Value of inventory as on 31.3.2010 is

A.
Rs.3,50,000
B.
Rs.2,70,000
C.
Rs.3,30,000
D.
Rs.3,00,000

Solution:

QUESTION: 53

A and B entered into a joint venture agreement to share the profits and losses in the ratio of 2:1. A supplied 100 radio sets worth Rs.1,00,000 to B incurring expenses of Rs.5,000 for freight and insurance. B sold 95 radio sets for Rs.1,20,000. 5 radio sets were taken over by B. The profit/loss on venture will be

A.
Profit of Rs.20,000
B.
Profit of Rs.15,000
C.
Loss of Rs.20,000
D.
Profit of Rs.20,250

Solution:

QUESTION: 54

The liabilities that are payable in more than a year and are not be liquidated from current assets

A.
Current liabilities
B.
Fixed liabilities
C.
Contingent liabilities
D.
All of the above

Solution:

QUESTION: 55

Record of purchase of T.V.parts.

Q. The value of T.V. sets on 15 March, as per LIFO will be

A.
Rs.1,500
B.
Rs.1,650
C.
Rs.1,575
D.
None of the three

Solution:

QUESTION: 56

Goods costing Rs. 10,000 were sold at 1/6 profit on selling price. The sale value will be

A.
Rs.12,000
B.
Rs. 12,500
C.
Rs. 10,000
D.
None of the three

Solution:

QUESTION: 57

A purchased a computer costing Rs.10,000. Repairing expenses Rs.1,000 and miscellaneous expenses Rs.500 were incurred by him on the Computer. He sold the computer at 20% margin on selling price. The sales value will be

A.
Rs.12,500
B.
Rs.11,000
C.
Rs.14,375
D.
Rs.13,800

Solution:

QUESTION: 58

Priya sold goods to Nidhi for Rs.1,00,000. Priya will grant 5% discount to Nidhi. Nidhi requested Priya to draw a bill. The amount of the bill will be

A.
Rs.1,00,000
B.
Rs.95,000
C.
Rs.93,800
D.
Rs.90,000

Solution:

QUESTION: 59

A bill is drawn on 28^th March, 2010 for one month after sight. The date of acceptance is 2^nd April, 2010. The maturity date of the bill will be

A.
1^st May, 2010
B.
28^th April, 2010
C.
5^th May, 2010
D.
2^nd May, 2010

Solution:

QUESTION: 60

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

A.
Rs.24,250
B.
Rs.25,000
C.
Rs.16,167
D.
Rs.32,333

Solution:

QUESTION: 61

Cross Offers means

A.
Exchanging identical offers by two parties in ignorance
B.
Offer made to the public in general
C.
Offer allowed to remain open for acceptance over a period of time
D.
Offer made to a definite person

Solution:

QUESTION: 62

Valid Contract:

A.
In case of this collateral agreements are void.
B.
Not enforceable in a court of law.
C.
An agreement enforceable by law at the option of one or more of the parties thereon but not at the option of the other or others
D.
Enforceable at the option of both the parties

Solution:

QUESTION: 63

Which of the following is a requirement for misrepresentation to exist?

A.
Misrepresentation should relate to a material fact
B.
The person making a misrepresentation should not believe it to be true
C.
It must be made with an intention to deceive the other party
D.
All of the above

Solution:

QUESTION: 64

Which of the following agreements is void?

A.
Agreements made under the unilateral mistake of fact
B.
Agreements made under the bilateral mistake of fact
C.
Agreements made under the influence of fraud
D.
Contingent agreement

Solution:

QUESTION: 65

Which of the following offers constitute a valid offer?

A.
An auctioneer displays a TV. set before a gathering in an auction sale
B.
Ram who is in possession of three cars purchased in different years says ‘I will sell you a car’
C.
A says to B, “Will you purchase my motor cycle for Rs. 20,000?
D.
All of the above

Solution:

QUESTION: 66

Which of the following statements is true?

A.
Even if a proposal is not accepted properly it becomes a valid contract
B.
The agreements which are against the public policy can be enforced if the parties are willing to contract
C.
A contract can consist of an offer or an acceptance only
D.
Two are more persons are said to consent when they agree upon the same thing in the same sense

Solution:

QUESTION: 67

Contract caused by which of the following is void?

A.
Fraud
B.
Misrepresentation
C.
Coercion
D.
Bilateral Mistake

Solution:

QUESTION: 68

Suppose the time fixed for performance of the contract has expired but the time is not essential.What is the remedy to the promisee in the circumstances?

A.
Can rescind the contract
B.
To claim compensation
C.
No remedy available
D.
Can’t be determined

Solution:

QUESTION: 69

What is legal terminology for the doing or not doing of something which the promisor desires to be done or not done?

A.
Desires
B.
Wishes
C.
Consideration
D.
Promise

Solution:

QUESTION: 70

Goods must be the same as wanted by the buyer. This is

A.
Condition as to description
B.
Condition as to sample
C.
Condition as to wholesomeness
D.
Condition as to title

Solution:

QUESTION: 71

Goods dependant upon certain events which may or may not happen.

A.
Unascertained goods
B.
Future goods
C.
Contingent Goods
D.
Existing Goods

Solution:

QUESTION: 72

Which of the following is a not document of title to goods?

A.
Bill of Lading
B.
Railway Receipt
C.
Dock Warrant
D.
Performa invoice

Solution:

QUESTION: 73

The term ‘goods’ for the purpose of the Sale of Goods Act, 1930 includes

A.
Money
B.
Actionable claims
C.
Growing crops, grass
D.
None of these

Solution:

QUESTION: 74

In which of the following cases, the unpaid seller loses his right of lien?

A.
Delivery of goods to buyer
B.
Delivery of goods to carrier
C.
Tender of price by buyer
D.
All of these

Solution:

QUESTION: 75

In case of sale of standing trees, the property passes to the buyer when trees are

A.
Felled and ascertained
B.
Not felled but earmarked
C.
Counted and ascertained
D.
Both (b) and (c)

Solution:

QUESTION: 76

Partnership

A.
Arises by operation of law
B.
Comes into existence only after registration
C.
Can arise by agreement or otherwise
D.
Arise by way of an agreement only

Solution:

QUESTION: 77

X and Y agree to work together as carpenters but X shall receive all profit and shall pay wages to Y. The relation between X and Y is that

A.
Partners
B.
Carpenters
C.
Labourers
D.
Master-Servant

Solution:

QUESTION: 78

Which of the following is an essential feature of partnership?

A.
Registration
B.
Test of Mutual Agency
C.
Separate Legal Entity
D.
All of the above

Solution:

QUESTION: 79

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

A.
To buy or sell goods on accounts of partners
B.
To borrow money for the purposes of firm
C.
To enter into partnership on behalf of firm
D.
To engage a lawyer to defend actions against firm

Solution:

QUESTION: 80

Implied contract, even if not in writing or express words, is perfectly ________if other conditions are satisfied

A.
Void
B.
Valid
C.
Voidable
D.
illegal

Solution:

QUESTION: 81

R, an optical surgeon, employs S as the assistant for a term of three years and S agrees not to practice as a surgeon during this period. This contract is _________

A.
Valid
B.
Void
C.
Voidable
D.
illegal

Solution:

QUESTION: 82

________ consideration is no consideration in England.

A.
Past
B.
Present
C.
Future
D.
Past and Present

Solution:

QUESTION: 83

A agrees to pay Rs. 500 to B if it rains, and B promises to pay a like amount to A if it does not rain, this agreement is called ___________.

A.
Quasi Contract
B.
Contingent Contract
C.
Wagering Agreement
D.
Voidable Contract

Solution:

QUESTION: 84

When the offeree offers to qualified acceptance of the offer subject to modifications and variations he is said to have made a ___________.

A.
Standing, open or continuing offer
B.
Counter Offer
C.
Cross Offers
D.
Special Offer

Solution:

QUESTION: 85

When after the formation of a valid contract, an event happens which makes the performance of contract impossible, and then the contract becomes ___________.

A.
Void
B.
Voidable
C.
Valid
D.
illegal

Solution:

QUESTION: 86

Where the performance of a promise by one party depends on the prior performance of promise by the other party, such reciprocal promises fall under the category of __________.

A.
Mutual and concurrent
B.
Conditional and dependent
C.
Mutual and independent
D.
Can’t be determined

Solution:

QUESTION: 87

The basis of ‘quasi contractual relations’ is the __________.

A.
Existence of a valid contract between the parties
B.
Prevention of unjust enrichment at the expense of others
C.
Provisions contained in Section 10 of the Contract Act
D.
Existence of a voidable contract between the parties

Solution:

QUESTION: 88

A agrees to pay Rs. 1000 to B if a certain ship returns within a year. However, the ship sinks within the year. In this case, the contract becomes __________

A.
Valid
B.
Void
C.
Voidable
D.
illegal

Solution:

QUESTION: 89

Where an agreement consists of two parts once legal and the other illegal, and the legal part is separable from the illegal one, such legal part is __________.

A.
Void
B.
Valid
C.
Voidable
D.
illegal

Solution:

QUESTION: 90

The Sale of Goods Act, 1930 came into force on __________.

A.
15^th March, 1930
B.
1^st July, 1930
C.
30^th July, 1930
D.
30^th June, 1930

Solution:

QUESTION: 91

Contract of Sale is __________.

A.
Executory Contract
B.
Executed Contract
C.
Executory Contract or Executed Contract
D.
None of the above

Solution:

QUESTION: 92

Where in an auction sale, the seller appoints more than one bidder, the sale is __________.

A.
Void
B.
illegal
C.
Conditional
D.
Voidable

Solution:

QUESTION: 93

Where the goods are delivered to a carrier or wharfinger for the purpose of transmission to the buyer, the delivery is __________.

A.
Invalid and ineffective
B.
Valid and effective
C.
Conditional
D.
None of these

Solution:

QUESTION: 94

The property in the goods means the __________.

A.
Possession of goods
B.
Custody of goods
C.
Ownership of goods
D.
Both (a) and (b)

Solution:

QUESTION: 95

Untill goods are ascertained there is merely __________.

A.
An agreement to sell
B.
A breach of warranty
C.
A breach of condition
D.
All the above

Solution:

QUESTION: 96

A genuine pre-estimate of the probable loss is __________.

A.
Penalty
B.
Dama ges
C.
Liquidated damages
D.
All of the above

Solution:

QUESTION: 97

Discharge by mutual agreement may involve__________.

A.
Novation
B.
Recission
C.
Alteration
D.
All of the above

Solution:

QUESTION: 98

A enquires from B, “Will you purchase my cow for $ 100?” B replies, “I shall purchase your cow for $ 100 provided you purchase my parrot for $ 120.” In this case __________.

A.
B has accepted the offer of A
B.
B has made a counter offer to A
C.
A is bound by the actions of B
D.
B cannot make such an offer

Solution:

QUESTION: 99

A sold 1000 tins of oil to B without appropriating any particular oil to the contract. B sold 600 tins out it to C and gave delivery order addressed to A. C lodged the delivery order with A requesting him to “await” his orders. Meanwhile, B became insolvent and thus A became the unpaid seller.

A.
A can exercise his right of lien and refuse to make delivery to C
B.
A cannot exercise his right of lien and refuse to make delivery to C
C.
C has claim over the goods in possession of A
D.
None of the above

Solution:

QUESTION: 100

X fraudulently induced Y to enter into partnership with him and Y pays a premium of Rs.5,000/- to A. Within three months the firm incurs liabilities to the extent of Rs.10,000/-.On discovering the fraud, Y files a suit for the rescission of the contract creating partnership and contract is rescinded. The creditors of the firm also levy attachment on Y who pays Rs.3,000/- to them as well. Which of the following is correct?

A.
Y can obtain a decree for Rs.8000/- against A
B.
Y can obtain a decree for Rs.5000/- against A
C.
Y can obtain a decree for Rs.3000/- against A
D.
Y cannot obtain a decree for either Rs.5,000/- or Rs.3,000/- or Rs.8000/- against

Solution:

QUESTION: 101

Find the correct match:

A.
An enquiry into the nature and causes of the wealth of the nation: A.C.Pigou.
B.
Science which deals with wealth: Alfred Marshall.
C.
Economics is the science which studies human behaviour as a relationship between ends and scarce means which have alternative uses: Robbins.
D.
The range of our enquiry becomes restricted to that part of social welfare that can be brought directly or indirectly into relation with the measuring rode of money: Adam Smith.

Solution:

QUESTION: 102

Suppose the demand for meals at a medium-priced restaurant is elastic. If the management of the restaurant is considering raising prices, it can expect a relatively:

A.
large fall in quantity demanded
B.
large fall in demand
C.
small fall in quantity demanded
D.
small fall in demand

Solution:

QUESTION: 103

Which of the following is not a characteristic of a “price taker”?

A.
TR = P x Q
B.
AR = Price
C.
Negatively – sloped demand
D.
Marginal Revenue = Price

Solution:

QUESTION: 104

Which cost increases continuously with the increase in production?

A.
Average cost
B.
Marginal cost
C.
Fixed cost
D.
Variable cost

Solution:

QUESTION: 105

Which one is not an assumption of the theory of demand based on analysis of indifference curves?

A.
Given scale of preferences as between different combinations of two goods
B.
Diminishing marginal rate of substitution
C.
Constant marginal utility of money
D.
Consumers would always prefer more of a particular good to less of it, other things remaining the same

Solution:

QUESTION: 106

Which of the following statements is correct?

A.
Under zamindari system, farmers directly paid land revenue to the state.
B.
At present, income tax revenues from the agriculture sector are negligible.
C.
Commercial banks are providing loans to the agriculture sector at zero interest rate
D.
None of the above

Solution:

QUESTION: 107

We can say Indian agriculture has become modern since:

A.
there has been an increased in the use of high yielding varieties of seeds, fertilizers, pesticides etc.
B.
there has been noticeable positive change in the attitude of farmers towards new techniques of production
C.
farmers are increasingly resorting to intensive cultivation, multiple cropping, scientific water management
D.
all of the above

Solution:

QUESTION: 108

Which of the following statements is correct?

A.
The demand and the supply of fuel are almost equal
B.
Our import bill on account of oil has been decreasing since 1990
C.
Oil prices have been decreasing since 1973
D.
Transmission and distribution losses of power companies are very high

Solution:

QUESTION: 109

Jet Airways and Kingfisher are examples of:

A.
Private Schools
B.
Private Airlines
C.
Private Ships
D.
Private Railways

Solution:

QUESTION: 110

All of the following developments were noticed during 1991(when economic reforms were enforced) except one. Identify it.

A.
National debt was nearly 60 percent of the GNP of India
B.
Inflation crossed double digits
C.
Foreign reserves were maintained at a very high level
D.
None of the above

Solution:

QUESTION: 111

All of the following statements except one are correct about the foreign trade policy, 2004-09. Identify the incorrect statement:

A.
Certain thrust areas like agriculture, handlooms, handicrafts etc have been identified
B.
Vishesh Krishiupaj Yojana has been started
C.
‘Served from India’ scheme has been started
D.
The entry of FDI in India has been restricted

Solution:

QUESTION: 112

The economic reforms have failed to:

A.
keep fiscal deficits to the targeted levels
B.
fully implement industrial deregulation
C.
fully open the economy to trade
D.
all of the above

Solution:

QUESTION: 113

Broad money refers to

A.
M₁
B.
M₂
C.
M₃
D.
M₄

Solution:

QUESTION: 114

Nationalization of banks aimed at all of the following except:

A.
removal of control by a few
B.
provision of credit to big industries only
C.
provision of adequate credit for agriculture, small industry and export units
D.
encouragement of a new class of entrepreneur

Solution:

QUESTION: 115

In order to encourage investment in the country, the RBI may:

A.
reduce CRR
B.
increase CRR
C.
sell securities in the open market
D.
increase Bank rate

Solution:

QUESTION: 116

Which of the following statements is incorrect?

A.
The Indian road net work is one of the longest in the world
B.
The rural road network connects around 65 percent of all weather roads
C.
Most of the State Road Transport Corporations are running on profits
D.
The National highways carry more than 40 percent of the total road traffic

Solution:

QUESTION: 117

————— expressed the view that “Economics is neutral between end”.

A.
Robbins
B.
Marshall
C.
Pigou
D.
Adam Smith

Solution:

QUESTION: 118

The law of demand refers to —————.

A.
price-supply relationship
B.
price-cost relationship
C.
price-demand relationship
D.
price-income relationship

Solution:

QUESTION: 119

Increasing returns imply —————.

A.
constant average cost
B.
diminishing cost per unit of output
C.
optimum use of capital and labour
D.
external economies

Solution:

QUESTION: 120

In monopolistic competition, a firm is in long run equilibrium —————.

A.
at the minimum point of the LAC curve
B.
in the declining segment of the LAC curve
C.
in the rising segment of the LAC curve
D.
when price is equal to marginal cost

Solution:

QUESTION: 121

Of the major 12 ports, ———— has been top traffic handler for the last five years.

A.
Paradip
B.
Cochin
C.
Kandla
D.
Mumbai

Solution:

QUESTION: 122

On an average, one post office in India serves —————.

A.
about 100 persons
B.
about 1000 persons
C.
more than 7100
D.
about 5800 persons

Solution:

QUESTION: 123

At present, nearly ————— percent of the energy consumed is obtained from noncommercial traditional sources.

A.
45
B.
51
C.
22
D.
10

Solution:

QUESTION: 124

————— refers to the transfer of assets or services functions from public to private ownership.

A.
Globalization
B.
Privatization
C.
Disinvestment
D.
Liberalization

Solution:

QUESTION: 125

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

A.
5
B.
7
C.
8
D.
2

Solution:

QUESTION: 126

At present, Bank rate is ————— percent. (Sept. 2014)

A.
5
B.
9
C.
6.5
D.
5.5

Solution:

QUESTION: 127

————— is the official minimum rate at which the central bank of a country is prepared to rediscount approved bills held by banks.

A.
CRR
B.
SLR
C.
Bank rate
D.
Repo rate

Solution:

QUESTION: 128

EPCG stands for —————.

A.
Export Promotion Capital Goods
B.
Expert Programme for Credit Generation
C.
Exchange Programme for Consumer Goods
D.
Export Promotion Consumer Goods

Solution:

QUESTION: 129

The area under irrigation has ————— over the years in India.

A.
remained constant
B.
decreased
C.
increased.
D.
first increased and then decreased

Solution:

QUESTION: 130

The service sector in India now accounts for —————.

A.
more than 80 percent of GDP
B.
more than 70 percent of GDP
C.
more than 50 percent of GDP
D.
more than 90 percent of GDP

Solution:

QUESTION: 131

————— is the Banker’s Bank in India.

A.
SBI
B.
PNB
C.
RBI
D.
OBC

Solution:

QUESTION: 132

According to the 2001 census the total literacy ratio is

A.
32.5%
B.
65.4%
C.
52.1%
D.
75.8%

Solution:

QUESTION: 133

(Direction 133 - 137) on based the demand and supply diagrams in Figure 1.