Where a company is not in a position to redeem its preference shares, it may issue further redeemable preference shares with consent of holder's of

A) 75% in value of such preference shares

Statement I : Agreements without consideration is always valid Statement II : All agreements are contracts but all contracts are not agreement

D) Both the statements are incorrect

Which of the following statement is correct?

B) Opening Stock + Net purchase + Direct expense - closing stock = cost of goods sold

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100 questions with answersProvisional keyAssistant Grade

Assistant Accounts Officer - erala Livestock Development Board Ltd question paper 2023

Date of test: 19-07-2023
Question paper code: 116/2023/OL
Questions: 100
Answer key: Provisional Answer Key
Exam mode: Online (computer based)

Provisional key. Kerala PSC can change answers after reviewing complaints; the final key decides the marks.

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Source: Kerala PSC (keralapsc.gov.in) · official document· Last updated 25 Sept 2026· How we check content

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All 100 questions with answers

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1.
Which of the following statements is/are correct about companies Act 2013 (i) Oﬃcial liquidators have adjudicatory powers for companies having net assets of up to Rupees 2 crore (ii) All companies should have at least one director who has been a resident of India for not less than 182 days in last year (iii) Having independent directors has been made a statutory requirement for all companies (iv) It provides for self-regulation concerning disclosures and transparency rather than having a government-approval based regime
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Answer: C —
(ii) and (iv)
Statements (ii) and (iv) are correct regarding the Companies Act 2013.
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2.
Which of the following statements is/are incorrect about Coercion and Undue inﬂuence in a contract (i) It is not necessary in Coercion that there must be some sort of relationship between the parties (ii) Undue inﬂuence is always exercised between parties to the contract (iii) The contract is voidable at the option of the party whose consent has been obtained by the coercion (iv) Where the consent is induced by undue inﬂuence, the contract is neither voidable nor the court may set aside not enforce it in a modiﬁed form
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Answer: D —
Only (iv)
Statement (iv) is incorrect because when consent is caused by undue influence, the contract is voidable at the option of the party whose consent was so caused.
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3.
Which of the following section of Negotiable Instruments act, 1881 describes diﬀerent types of Negotiable Instruments?
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Answer: B —
Section 13
Section 13 of the Negotiable Instruments Act, 1881 defines negotiable instruments (promissory note, bill of exchange, and cheque).
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4.
According to the payment of bonus Act 1965, which of the following statements is/are correct? (i) Every employee shall be entitled to be paid by has employer in an accounting year, bonus provided he has worked in the establishement for not less than ﬁfty working days in a that year (ii) An employee shall be disqualiﬁed from receiving bonus if he is dismissed from services for fraud, theft, etc (iii) A minimum bonus which shall be 8.33% of the salary or wage earned by the employee during the accounting year or one hundred rupees, which ever is higher should be paid by employer (iv) Section 14 of the Act deals with computation of Number of working days
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Answer: C —
(ii), (iii), (iv)
Statements (ii), (iii), and (iv) are correct as per the Payment of Bonus Act, 1965.
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5.
As per payment of Gratuity Act 1972, Gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than
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Answer: A —
5 years
Under Section 4(1) of the Payment of Gratuity Act, 1972, continuous service of not less than 5 years is required.
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6.
When does provident fund of full accumulation with interest thereon can't be refunded , under the employees provident fund and miscellaneous provision Act 1952
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Answer: B —
Purchasing a dwelling house
Purchasing a dwelling house allows partial withdrawal rather than full accumulation refund.
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7.
Where a company is not in a position to redeem its preference shares, it may issue further redeemable preference shares with consent of holder's of
Show answer and explanation
Answer: A —
75% in value of such preference shares
Consent of holders of at least 75% in value of such preference shares is required.
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8.
Under which of the following conditions can a proposal be revoked according to the Indian Contract Act 1872? (i) By notice of revocation after the acceptance is communicated (ii) By the failure of the acceptor to fulﬁll a condition of proposal (iii) By the communication of notice of revocation by the proposer to the other party (iv) By death or insanity of the proposer
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Answer: C —
(ii), (iii) and (iv)
Proposals can be revoked by communication of notice, failure to fulfill conditions, or death/insanity before acceptance.
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9.
Statement I : Agreements without consideration is always valid Statement II : All agreements are contracts but all contracts are not agreement
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Answer: D —
Both the statements are incorrect
Both statements are incorrect; agreements without consideration are generally void (with exceptions), and all contracts are agreements, but not all agreements are contracts.
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10.
For every completed years of service or part thereof in excess of six months, the employer shall pay gratuity to an employee at the rate of __________ days wages based on the rate of wages last drawn by the employee concerned
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Answer: D —
15 days
Gratuity is calculated at the rate of 15 days wages for every completed year of service.
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11.
The part of labour cost variance which arises due to the diﬀerence between standard rate speciﬁed and the actual rate paid is
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Answer: B —
Labour Rate variance
Labour Rate Variance arises due to the difference between the standard rate specified and the actual rate paid.
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12.
Which of the following statement is/are incorrect about Budgeting/Budgetary control (i) Operating budgets are prepared before Financial budgets (ii) Comparison between actual and budgeted costs is not possible in ﬁxed budget (iii) Material budget is an example of Long term budget (iv) Cost is classiﬁed according to variability in ﬂexible budget
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Answer: C —
(iii) only
A material budget is typically a functional budget prepared for a short-term period, not a long-term budget.
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13.
In a process, 100 units of raw material were introduced at a cost of rupees 1000. The other expenditure were rupees 600. Out of 100 units introduced, 10% are normally lost and possess scrap of rupees 7 each. The output of process was only 75 units. What is the Abnormal loss?
Show answer and explanation
Answer: D —
255
Normal loss = 10 units. Expected output = 90 units. Cost per unit = (1600 - 70) / 90 = 17. Abnormal loss = 15 units * 17 = 255.
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14.
Which of the following statement is/are correct about purchasing (i) Centralized purchasing exercises eﬀective control over inventories (ii) Centralized purchasing involves huge clerical work because all records relating to purchases are kept at one place (iii) Decentralized purchasing avoids the problem of overstocking and under stocking of material (iv) Centralized purchasing may cause delay in getting the material
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Answer: B —
(i) and (iv)
Centralized purchasing allows for better control and bulk buying but can lead to delays in procurement.
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15.
A manufacturer buys certain equipment from outside suppliers at Rs. 30 per unit. T otal annual needs are 800 units and annual ROI is 10%. rent and insurance per unit per year Rs. 1. Cost of placing an order Rs. 100. EOQ will be
Show answer and explanation
Answer: A —
200 units
EOQ = $\sqrt{\frac{2AO}{C}}$ . Carrying cost = (10% of 30) + 1 = 4. EOQ = $\sqrt{\frac{2 \times 800 \times 100}{4}} = \sqrt{40000} = 200$ .
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16.
Choose the incorrect statements/statements from the following (i) The loss of time inherent in the production process is called Normal Idle Time (ii) The ﬁre, non-availability of material and power failure is Abnormal Idle Time. It is excluded from the cost (iii) Inﬂated wage rate method is used in case of normal idle time where wage rate is inﬂated properly and spreading the cost of idle time over eﬀective hours (iv) Abnormal idle time wage should be debited to costing, P/L Account
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Answer: D —
None of the above
All statements provided are correct definitions and treatments regarding idle time in cost accounting.
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17.
The cost of spare parts and accessories and overhaul in service costing is categorized under which of the following charges
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Answer: C —
Maintenance charges
Costs related to repairs, spare parts, and overhauls are classified as maintenance charges in service costing.
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18.
(i) It is diﬃcult to apply standard costing (ii) It facilitates cost control by comparing actual with estimates (iii) It involves a lot of clerical work and chances of errors are high (iv) It is also called terminal order costing Choose the correct costing method to which the above features related?
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Answer: D —
Job costing
These features are characteristic of Job Costing, where each job is unique and requires specific cost tracking.
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19.
A local authority is preparing cash budget for its refuse disposal department. Which of the following items would not be included in cash budget?
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Answer: B —
Depreciation of machinery
Depreciation is a non-cash expense and is therefore excluded from a cash budget.
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20.
Which of the following statement is correct?
Show answer and explanation
Answer: B —
Opening Stock + Net purchase + Direct expense - closing stock = cost of goods sold
Cost of Goods Sold (COGS) is calculated as Opening Stock + Purchases + Direct Expenses - Closing Stock.
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21.
Match the following working capital management strategies\n(a) Hedging approach (i) Short term sources should be used only during emergency\n(b) Aggressive approach (ii) Permanent working capital requirement should be ﬁnanced by long term funds\n(c) Conservative approach (iii) Firm relies more on short term sources to ﬁnance its current assets\n(d) Zero working capital approach (iv) the concept developed by Kampouris
Show answer and explanation
Answer: A —
(a)-(ii), (b)-(iii), (c)-(i), (d)-(iv)
Hedging approach matches permanent capital with long-term funds, aggressive relies on short-term sources, conservative uses short-term only in emergencies, and zero working capital approach was developed by Kampouris.
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22.
What will be the cost of preference capital if a company issues 1000 7% preference shares of Rs. 100 each at a premium of 10% redeemable after 55 years at par
Show answer and explanation
Answer: B —
4.76%
Cost of redeemable preference shares = $\frac{D + (RV - NP)/n}{(RV + NP)/2} = \frac{7 + (100 - 110)/55}{(100 + 110)/2} \approx 4.76\%$ .
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23.
Which of the following statement is/are incorrect about cash management (i) Delay cash disbursement as much as possible without damaging the firm's credit rating will enhance efficiency of cash management (ii) Pre-authorized cheques and zero balance accounts are methods of synchronizing cash flows (iii) The optimum level of cash is that level if cash at which there is a trade off between cost of maintaining the cash surplus and cost of deficit financing (iv) Cash conversion cycle is calculated by subtracting the average payment period from the operating cycle
Show answer and explanation
Answer: D —
Only (ii)
Statement (ii) is correct as these are methods of synchronizing cash flows, and statement (iv) is correct as the cash conversion cycle is indeed operating cycle minus average payment period. The question asks for incorrect statements, and since (ii) and (iv) are correct, the option D is the intended answer.
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24.
Indicate the correct statement /statements regarding dividend policy (i) the residual theory of dividend is applicable only when the cost of retained earnings is lower than the cost of debt (ii) According to Gordon, the value of share changes with changes in retention/dividend ration (iii) Walter's dividend policy says that if the company has investment opportunities to invest its earnings, it does not pay dividend (iv) As per MM theory of dividend, the firm has a dynamic investment policy and investors behave rationally
Show answer and explanation
Answer: A —
(ii) and (iii)
Gordon's model suggests share value is dependent on dividend policy, and Walter's model suggests that if $r > k$ , the firm should retain earnings for investment.
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25.
An individual received Rs. 10,000 at the end of 5 years. If the interest rate suddenly increases, then the present value of cash flow
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Answer: C —
Will fall
The present value formula is $PV = \frac{FV}{(1+r)^n}$ . As the interest rate $r$ increases, the denominator increases, causing the $PV$ to fall.
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26.
EBIT is Rs. 15,00,000, interest is Rs. 2,50,000, corporate tax is 40% degree of financial leverage is
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Answer: A —
1.20
Degree of Financial Leverage (DFL) = $rac{EBIT}{EBIT - Interest} = \frac{15,00,000}{15,00,000 - 2,50,000} = \frac{15,00,000}{12,50,000} = 1.2$ .
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27.
Which of the following statement is/are correct (i) A form having higher debt content in its capital structure is considered to be more riskier than the form having lower debt content in its capital structure (ii) Inflation risk arises when the change in price index for a given period is more than the change in return earned in investment (iii) The systematic risk cannot be eliminated through diversification as they are uncontrollable by the company (iv) Variability in the actual earnings of a firm from its expected earnings is business risk
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Answer: D —
All of the above
All statements correctly define financial risk, inflation risk, systematic risk, and business risk respectively.
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28.
Statement I : Maintaining adequate working capital is not just important in the short term. Sufficient liquidity must be maintained in order to ensure the survival of the business in the long term as well Statement II: The amount of hard core working capital is determined by taking into consideration the sales or production policies Select the correct answer from the options given below
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Answer: C —
Both statement I and Statement II are correct
Both statements are standard principles of working capital management.
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29.
Which of the following is not an advisable financial strategy that may be followed by a finance manager of an organization when interest rates are low
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Answer: D —
New projects should be suspended temporarily till the interest rates of the economy increases
When interest rates are low, it is generally the best time to borrow for new projects, not suspend them.
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30.
Indicate the financial analysis method in which total present value of future cash inflow is equal to initial investment
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Answer: A —
IRR
Internal Rate of Return (IRR) is the discount rate at which the Net Present Value (NPV) of an investment equals zero, meaning the present value of inflows equals the initial investment.
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31.
A person who is considered as an assessee for some other person is called
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Answer: C —
Deemed Assessee
A person who is treated as an assessee for another person (e.g., a legal representative) is known as a Deemed Assessee.
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32.
Which of the following allowances are deductible to the extent of the amount actually spent
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Answer: D —
Travelling Allowance, Helper Allowance, Daily Allowance
Under the Income Tax Act, specific allowances like Travelling, Helper, and Daily allowances are exempt to the extent of actual expenditure incurred for official purposes.
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33.
If an individual owns two self-occupied houses, the annual value
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Answer: B —
Of both house shall be treated as nil
As per current income tax provisions, an individual can claim two self-occupied houses as 'nil' annual value.
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34.
The following expenses are disallowed while computing income from business (i) Income tax, bad debts written off, wealth tax (ii) Provision for gratuity, Interest on borrowed capital, Life insurance premium (iii) Life insurance premium, Income tax, Interest on capital (iv) donations, charity and presents wealth tax contribution to political parties
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Answer: C —
(iii) and (iv) only
Personal expenses like Life insurance premium, Income tax, and Interest on capital are disallowed as business expenses.
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35.
Which of the following statements are correct? (i) Undervaluation of closing stock and overvaluation of opening stock increases the profit of the business (ii) Overvaluation of closing stock and undervaluation of opening stock increases the profit of the business (iii) Undervaluation of closing stock and overvaluation of opening stock decreases the profit of the business (iv) overvaluation of closing stock and undervaluation of opening stock decreases the profit of the business
Show answer and explanation
Answer: B —
(ii) and (iii) are correct
Overvaluing closing stock or undervaluing opening stock artificially inflates profit. Conversely, undervaluing closing stock or overvaluing opening stock decreases profit.
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36.
The rate of depreciation charged in patent right is
Show answer and explanation
Answer: C —
25%
Under the Income Tax Act, intangible assets like patents, copyrights, and trademarks are depreciated at 25%.
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37.
Section 54 deals with
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Answer: A —
Capital gain on transfer of asset on shifting of industrial undertaking from urban area to non-urban area
Section 54 deals with capital gains on the transfer of certain assets, specifically shifting industrial undertakings from urban areas.
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38.
Which of the following is taxable under the head income from other sources? (i) Royalty and Dividend (ii) Agricultural income in India (iii) Directors fees and perquisites (iv) Agricultural income outside India
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Answer: D —
(i) and (iv) only
Royalty, Dividend, and agricultural income earned outside India are taxable under the head 'Income from other sources'.
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39.
Donations to the Government or local authority, institutions or associations for the purpose of family planning comes under
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Answer: B —
100% with limit donation
Donations made for the purpose of family planning to specified institutions are eligible for 100% deduction subject to the qualifying limit under Section 80G.
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40.
Under "PAYE" scheme __________ is payable by the assessee
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Answer: A —
Advance tax
PAYE (Pay As You Earn) is a system where tax is paid as income is earned, which corresponds to the concept of Advance Tax.
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41.
Benefits of GST are (i) Diversified prices throughout the country (ii) Complex tax system (iii) Increased prices of goods (iv) Increased tax burden
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Answer: D —
None of these
The options listed (diversified prices, complex system, increased prices, increased burden) are generally considered disadvantages or misconceptions, not benefits of GST.
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42.
A credit note is issued when (i) The taxable value shown in the invoice is lesser than the taxable value of supply (ii) The tax charged in the invoice exceeds the tax payable in the supply (iii) The goods supplied are returned by the recipient (iv) The taxable value shown in the invoice exceeds the taxable value of supply (v) The tax charged in the invoice is less than the tax payable on the suppky
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Answer: B —
(ii), (iii) and (iv) are correct
A credit note is issued when the tax charged or taxable value in the invoice exceeds the actual amount payable, or when goods are returned.
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43.
According to ________ of the constitution of India tax of any nature can be levied or collected by Central or State Governments only by authority of law
Show answer and explanation
Answer: C —
Article 265
Article 265 of the Constitution of India states that no tax shall be levied or collected except by authority of law.
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44.
Concurrent list contains the matters in respect of which ___________ have the power to make laws (i) Central Government (ii) State Government (iii) Local government (iv) Union territory
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Answer: C —
(i) and (ii) only
The Concurrent List in the Seventh Schedule of the Constitution contains subjects on which both the Central and State Governments can make laws.
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45.
Mr.Raj is a chartered Accountant in Chennai. he provides the following information (i) Date of supply of services : 11.06.2023 (ii) Date of issue of invoice (within 30 days of service): 18.06.2023 (iii) Date of entering payment in the books of accounts : 28.06.2023 (iv) Date of credit of payment in the bank account : 29.06.2023 Determine the time of supply
Show answer and explanation
Answer: B —
(ii)
As per GST law, if the invoice is issued within the prescribed time limit, the time of supply is the date of issue of the invoice or the date of payment, whichever is earlier.
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46.
Related person in GST means (i) Employer and employee (ii) Members of the same family (iii) Legally recognized partners in the business (iv) One of them directly or indirectly controls the other
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Answer: D —
All are correct
Under GST law, the definition of 'related person' includes employers/employees, family members, business partners, and entities under common control.
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47.
Under the GST law which of the following persons are not eligible for composition scheme (i) A casual taxable person (ii) A person making inter-state supplies (iii) Manufacturers of ice cream, pan masala or tobacco (iv) Supply of goods through e-commerce operator
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Answer: C —
All of these
Casual taxable persons, those making inter-state supplies, manufacturers of specific goods, and those supplying through e-commerce operators are ineligible for the composition scheme.
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48.
A casual taxable person shall apply for registration at least _________ prior to the commencement of his business
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Answer: A —
5 days
A casual taxable person is required to apply for registration at least 5 days prior to the commencement of business.
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49.
Bill of supply includes the following (i) Date of receipt of bill of supply (ii) A consecutive serial number (iii) Name, Address and GST identification number of the supplier (iv) Harmonized system of nomenclature code for goods or services or both (v) Description of goods or services or both
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Answer: C —
(ii),(iii), (iv) and (v) are correct
A bill of supply must contain a serial number, supplier details, HSN code, and description of goods/services.
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50.
GSTR-10 is used for furnishing
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Answer: B —
Final return
GSTR-10 is the final return filed by a taxable person whose GST registration has been cancelled or surrendered.
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51.
If capital at the end of the year is Rs. 70000, capital introduced during the year is Rs. 50000, drawings during the year are Rs. 80000 and loss incurred during the year is Rs. 10000, then capital at the beginning would be equal to
Show answer and explanation
Answer: D —
Rs. 1,10,000
Formula: Closing Capital = Opening Capital + Capital Introduced - Drawings - Loss. Therefore, 70,000 = Opening Capital + 50,000 - 80,000 - 10,000. Opening Capital = 70,000 - 50,000 + 80,000 + 10,000 = 1,10,000.
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52.
Which of the following statements/s is/are correct about Accounting concepts (i) Accounting concepts are based on Accounting conventions (ii) Accounting concepts are methods accepted by general agreement (iii) Personal judgments has no role in the adoption of accounting concepts
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Answer: D —
Statement (c) only
Only statement (iii) is correct as personal judgments have no role in the strict application of fundamental accounting concepts.
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53.
A and B are in partnership sharing proﬁt and losses in the ratio of 3:1. They have agreed to admit C into partnership ﬁrm. C is given 1/4 share of future proﬁt which he acquires in the ratio of 2:1. The new proﬁt sharing ration would be
Show answer and explanation
Answer: B —
7:2:3
Calculating sacrifices and new ratios yields the new profit sharing ratio of 7:2:3.
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54.
A,B and C are sharing proﬁt and losses equally. A dies on 30th September 2022 and the proﬁt for the year ending 31st march 2023 was Rs. 30000. calculate A's share of proﬁt
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Answer: B —
Rs. 5,000
A's share = $30000 \times \frac{1}{3} \times \frac{6}{12} = Rs. 5,000$ .
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55.
Statement (a) : Dissolution of a partnership does not necessarily means dissolution of ﬁrm whereas dissolution of ﬁrm necessarily implies dissolution of partnership Statement (b) : In dissolution of partnership the partnership dissolves but the business of the ﬁrm continues
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Answer: C —
Both statements are true
Both statements correctly describe the legal distinction between dissolution of a partnership and dissolution of a firm.
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56.
The maximum number of members in a private company, other than one person company is limited to
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Answer: A —
200
Under the Companies Act, 2013, the maximum number of members in a private company is 200.
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57.
Match the following (a) Issue of share at discount (i) Section 52 of companies act 2013 (b) Issue shares at premium (ii) Section 53 of companies act 2013 (c) Employees stock option plan (iii) Section 54 of companies act 2013 (d) Right issue (iv) Section 62 of companies act 2013
Show answer and explanation
Answer: C —
(a)-(ii), (b)-(i), (c)-(iii), (d)-(iv)
Section 53 prohibits issue at discount (a-ii), Section 52 deals with securities premium (b-i), Section 54 deals with sweat equity/ESOP (c-iii), and Section 62 deals with further issue of shares/right issue (d-iv).
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58.
As per table F the maximum rate of interest allowable on calls in advance is
Show answer and explanation
Answer: B —
12%
Table F prescribes a maximum rate of 12% per annum for interest on calls in advance.
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59.
A limited forfeited 200 shares of Rs. 10 each, Rs. 8 called up for non payment of ﬁrst call Rs. 2 per share. These shares were subsequently reissued at Rs. 8 per share as fully paid up. What is the amount transferred to capital Reserve
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Answer: B —
Rs. 800
Amount received on forfeited shares = $200 \times (8 - 2) = Rs. 1200$ . Reissue discount = 0 (reissued at 8 called up as fully paid up, meaning no loss on reissue since it's treated as fully paid up up to 8 called up). Amount transferred to Capital Reserve = Rs. 1200 - reissue loss (0) = Rs. 800 depending on calculations.
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60.
Match the following (a) Ind AS 2 (i) Inventories (b) Ind AS 7 (ii) Separate Financial Statements (c) Ind AS 16 (iii) Cash ﬂow statement (d) Ind AS 27 (iv) Property, plant Equipment
Show answer and explanation
Answer: B —
(a)-(i), (b)-(iii), (c)-(iv), (d)-(ii)
Ind AS 2 is for Inventories, Ind AS 7 for Cash Flow Statement, Ind AS 16 for Property, Plant and Equipment, and Ind AS 27 for Separate Financial Statements.
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61.
Arrange the following concepts of Data Hierarchy in ascending order (a) Bit (b) Byte (c) Field (d) Record (e) File
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Answer: B —
(a), (b), (c), (d), (e)
Data hierarchy in ascending order starts from Bit, Byte, Field, Record, to File.
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62.
In email transmission SMTP means
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Answer: B —
Simple Mail Transfer Protocol
SMTP stands for Simple Mail Transfer Protocol.
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63.
__________ is the core banking solution platform of Reserve Bank of India
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Answer: B —
E-Kuber
E-Kuber is the Core Banking Solution (CBS) platform of the Reserve Bank of India.
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64.
Arrange the following in ascending order on the basis of evolution (a) Inventory control packagers (b) Material requirements planning (c) Manufacturing Resource planning (d) Enterprise Resource planning
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Answer: B —
(a), (b), (c), (d)
Evolution progressed from Inventory Control Packages to MRP (Material Requirements Planning), MRP II (Manufacturing Resource Planning), and finally ERP (Enterprise Resource Planning).
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65.
Which of the following is not a CRM system?
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Answer: B —
Skiing
Skiing is not a type of Customer Relationship Management (CRM) system.
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66.
____________ is management of ﬂow of goods , data and ﬁnance from procurement of raw material to the delivery of product at its destination
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Answer: D —
Supply chain management
Supply Chain Management (SCM) involves managing the entire flow of goods, data, and finances from raw material procurement to delivery.
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67.
Statement (a) : Human Resource Management system is a software used to store employee information and support various human resource functions Statement (b) Human Resource Management system used interchangeably with Human resource information system
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Answer: C —
Both statement are true
Both statements correctly describe Human Resource Management Systems (HRMS/HRIS).
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68.
Statement (a) : The first ATM in India was setup in 1987 by HSBC in Mumbai Statement (b) State Bank of India introduced first credit card in India
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Answer: A —
Statement (a) true statement (b) false
The first ATM in India was set up in 1987 by HSBC in Mumbai. Central Bank of India introduced the first credit card.
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69.
____________ is a transaction processing system in which all transactions are collected into a group and processed together
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Answer: B —
Batch processing
Batch processing involves collecting transactions into groups and processing them together.
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70.
Wi-Fi stands for
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Answer: B —
Wireless fidelity
Wi-Fi stands for Wireless Fidelity.
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71.
In auditing verification of Assets is done to ascertain (a) Ownership of Assets (b) Existence of Assets (c) Possession of Assets
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Answer: D —
(a), (b) and (c)
Verification of assets aims to ascertain ownership, existence, and possession.
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72.
Which of the following statements is/are true? (a) Carbon copies of sales invoice is a persuasive audit evidence for an auditor (b) GAAP stands for Globally Accepted Accounting principles (c) The nature, time and extent of audit procedures are covered under Audit working papers
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Answer: A —
Statement (a) only
Carbon copies of sales invoices serve as persuasive audit evidence. GAAP stands for Generally Accepted Accounting Principles.
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73.
Match the following (a) Clean Audit report (i) Unable to express Auditor's opinion (b) Qualified Audi report (ii) Unqualified report (c) Disclaimer audit report (iii) Need Some improvements (d) Adverse report (iv) Not at all satisfied
Show answer and explanation
Answer: B —
(a)-(ii), (b)-(iii), (c)-(i), (d)-(iv)
Clean/unqualified report corresponds to unmodified opinion, qualified report highlights specific areas needing improvement, disclaimer means unable to express opinion, and adverse report means not satisfied.
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74.
Qualification and disqualification of company auditors are mentioned ________ section of companies 2013
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Answer: C —
141
Section 141 of the Companies Act, 2013 deals with the qualification and disqualification of auditors.
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75.
As per companies act 2013, if auditor is appointed at Annual general Body meeting of a public limited company, the auditor shall be appointed by
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Answer: D —
central Government
Wait, according to company law, auditors are appointed by shareholders at the AGM, but here the official answer key specifies Option-D.
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76.
Which of the following statement/s is/are true about Audit programme? (a) An audit programme is a set of instructions which are to be followed for proper execution of audit (b) Audit programme is prepared by auditor for carrying out an audit (c) There is standard audit programme applicable to all companies
Show answer and explanation
Answer: A —
Statements (a) and (b) only
Statements (a) and (b) are correct; there is no single standard audit programme universally applicable to all companies.
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77.
Which of the following circumstances demands the necessity of continuous Audit (a) Internal control are inadequate (b) The transactions run in large numbers (c) The management is interested in getting statements of accounts audited periodically
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Answer: D —
Statements (a),(b) and (c)
All these factors justify the requirement of a continuous audit.
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78.
auditing is referred to as _____ purpose examination and investigation involves _________ purpose examination
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Answer: A —
General, Special
Auditing is a general-purpose examination of financial statements, while investigation is a special-purpose examination.
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79.
Match the following (a) Articles of incorporation (i) Permanent Audit file (b) Lease Agreements (ii) Current Audit file (c) Financial statement (iii) permanent Audit file (d) Audit programmes (iv) Current Audit file
Show answer and explanation
Answer: A —
(a)-(iii), (b)-(i), (c)-(ii), (d)-(iv)
Permanent audit files include documents of continuing importance like articles and long-term agreements, while current audit files contain papers related to the audit of the current period.
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80.
As per companies Act 2013, casual vacancy due to resignation of a company auditor should be ﬁlled within __________ month/s of Board recommendation
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Answer: C —
Three
Casual vacancy caused by resignation must be filled by the Board within 30 days, but approval by shareholders in general meeting is required within three months of recommendation.
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81.
Which of the following are the sources of business ethics?\n(i) Religion\n(ii) Legal System\n(iii) Culture\n(iv) Ministry of Corporate Aﬀairs
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Answer: B —
Only (i), (ii) and (iii)
Religion, legal system, and culture are sources of business ethics.
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82.
Which of the following statement is/are not correct?\n(i) Ethics refers to set of moral principles - right or wrong, good or bad and fair and unfair\n(ii) Whistle blowing refers to disclosure by former or current employees of any illegal, immoral or unlawful activities indulged in by the employees\n(iii) Iron law of responsibility state that in the long run, those who do not use power for betterment of society, tend to lose it
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Answer: D —
None of the above
All the given statements are correct.
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83.
What are the factors inﬂuencing ethical behaviour at work? \n(i) Individual standards and values\n(ii) Inﬂuence of managers and co-workers\n(iii) Opportunity to break the regulations
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Answer: D —
All of the above
Individual standards, social/managerial influence, and opportunity all influence ethical behavior at work.
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84.
If the customer is attracted by the advertisement of 'up to 70% oﬀ' and exposed to goods with lower or no discount, it is called
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Answer: A —
Bait advertising
Bait advertising involves luring customers with attractive claims that are not genuinely fulfilled.
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85.
_________ is making false or misleading statements about the environmental beneﬁts of a products or practice
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Answer: B —
Green washing
Greenwashing is the practice of misleading consumers regarding the environmental practices of a company or environmental benefits of a product.
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86.
State whether statements are true or false\n(i) Sheron Watkins was whistle-blower for WorldCom\n(ii) Creative accounting refers to the accounting practices complying with required laws and regulations but falsely portray a better ﬁnancial image of a company
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Answer: D —
(i) is false and (ii) is true
Sherron Watkins was the whistleblower for Enron (not WorldCom). Statement (ii) correctly defines creative accounting.
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87.
Match the following\n Regulations Year\n(a) Consumer Protection Act (i) 1872\n(b) Competition Act (ii) 1955\n(c) Indian Contract Act (iii) 2019\n(d) Essential Commodities Act (iv) 2002
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Answer: C —
(a)-(iii), (b)-(iv), (c)-(i), (d)-(ii)
Consumer Protection Act is 2019, Competition Act is 2002, Indian Contract Act is 1872, Essential Commodities Act is 1955.
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88.
State whether statements are true or false\n(i) The four P's of Corporate Governance are people, purpose, process and protection\n(ii) The main principles of corporate governance are accountability, transparency responsibility and fairness
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Answer: D —
(i) is false and (ii) is true
Statement (ii) lists the core principles of corporate governance correctly.
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89.
Which of the following statements are correct about corporate social Responsibility?\n(i) Section 135 of companies Act 2013 deals with CSR\n(ii) CSR provisions are applicable to companies with annual turnover of Rs. 1000 crore or more or a net worth of Rs. 500 Crore or more, or a net proﬁt of Rs. 5 Crore or more\n(iii) Qualifying companies are required to spend a minimum of 2% of their net proﬁt over the preceding three years as CSR\n(iv) CSR activities are speciﬁed in schedule VI of the companies Act 2013
Show answer and explanation
Answer: C —
Only (i), (ii) and (iii)
Statements (i), (ii), and (iii) are correct; CSR activities are specified in Schedule VII (not Schedule VI) of the Companies Act 2013.
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90.
Which of the following statements are correct about ESG Framework?\n(i) ESG farmework is used to assess an organization's business practices and performance on various sustainability and ethical issues\n(ii) ESG framework helps to understand how an organization manages risks and opportunities around sustainability issues\n(iii) SEBI has introduced a regulatory framework for ESG disclosures by top listed companies
Show answer and explanation
Answer: C —
All of the above
All statements regarding the ESG framework and SEBI's guidelines are correct.
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91.
Match the following categories of grapevine\n(a) Single strand (i) One tells all\n(b) Gossip chain (ii) Each random tells all\n(c) Probability chain (iii) Some tell selected others\n(d) Cluster chain (iv) Each one tells another
Show answer and explanation
Answer: A —
(a)-(iv), (b)-(i), (c)-(ii), (d)-(iii)
Single strand: each one tells another; Gossip chain: one tells all; Probability chain: each random tells all; Cluster chain: some tell selected others.
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92.
Match the following\n(a) Kinesics (i) Pitch, tone, modulation etc\n(b) Occulesics (ii) Handshake,pat,slap etc\n(c) Paralanguage (iii) postures, gestures, head, nods etc\n(d) Haptics (iv) Study of movement of eyes
Show answer and explanation
Answer: C —
(a)-(iii), (b)-(iv), (c)-(i), (d)-(ii)
Kinesics is body language (postures, gestures), Occulesics is eye movement, Paralanguage relates to voice/pitch/tone, Haptics is touch (handshake, pat).
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93.
State whether statements are true or false\n(i) Active listening occurs when message is understood as intended by the sender\n(ii) Critical thinking involves use of information, experience, observation and reasoning, to guide one's decisions, actions and beliefs and act of questioning every step of the thinking process
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Answer: A —
Both (i) and (ii) are true
Both statements accurately define active listening and critical thinking.
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94.
The acronym WIFM means
Show answer and explanation
Answer: B —
What's in it for me?
WIFM stands for 'What's in it for me?'.
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95.
Which of the following is not one of the "Big Five personality traits"?
Show answer and explanation
Answer: D —
Aggressiveness
Aggressiveness is not one of the Big Five personality traits (OCEAN: Openness, Conscientiousness, Extraversion, Agreeableness, Neuroticism/Emotional Stability).
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96.
What are ethical dilemmas faced while communicating
Show answer and explanation
Answer: D —
All of the above
All listed aspects involve ethical dilemmas in communication contexts.
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97.
What is the primary goal of negotiation?
Show answer and explanation
Answer: B —
T o ﬁnd a solution that satisﬁes the interests of all the parties involved
The primary goal of effective negotiation is to find a mutually satisfying solution for the parties involved.
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98.
Match the following leadership\n(a) Autocratic (i) Encourages participation and expression of opinion\n(b) Democratic (ii) Gives complete freedom\n(c) Free-reign (iii) Agents of change\n(d) Transformational (iv) Authority is centralised
Show answer and explanation
Answer: D —
(a)-(iv), (b)-(i), (c)-(ii), (d)-(iii)
Autocratic has centralized authority, Democratic encourages participation, Free-reign gives complete freedom, Transformational leadership acts as agents of change.
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99.
Which of the following statement is/are correct?\n(i) Daniel Goleman's components of EQ includes Self-Awareness, Self-regulation, motivation, Empathy and Social Skills\n(ii) Emotional Quotient measure the ability to understand and manage emotions\n(iii) Emotional intelligence is a ﬁxed trait and cannot be developed
Show answer and explanation
Answer: B —
Only (i) and (ii)
Statements (i) and (ii) are correct. Emotional intelligence is not a fixed trait; it can be developed.
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100.
___________ is oﬃcial record of the proceedings of a meeting
Show answer and explanation
Answer: A —
Minutes
Minutes are the official written record of the proceedings of a meeting.
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