UGC NET COMMERCE
SOLVED PAPERS
PAPER.II
1. If Opening Stock is
10,000, Net Purchases 70,000, Wages
2,500, Carriage inward 500 and Closing Stock 15,000, what is the Manufacturing Cost?
(A) ` 65,000 (B) ` 83,000
(C) ` 68,000 (D) ` 73,000
2. What does a high payout
ratio indicate?
(A) A High
Earning Per Share (EPS)
(B)
The management is not ploughing back enough profit.
(C) The
management is ploughing back profit.
(D) The
company is earning high profit.
3. Which one of the
following statements is true?
(A) Capital expenditure
does not affect the profitability of a concern but revenue expenditure does.
(B) Capital
expenditure affects the profitability of a concern directly but revenue expenditure
does not.
(C)
Capital expenditure affects the profitability of a concern indirectly but
revenue expenditure affects directly.
(D) Both
capital expenditure and revenue expenditure affect the profitability of a
concern directly.
4. Identify the true
statement of the following:
(i) Balance
Sheet is always prepared from the point of view of the business but not from
that of the owners.
(ii) The
financial relationship of the business to its owners is shown in the Balance
Sheet.
(iii) Balance
Sheet is always related to a period of time.
Codes:
(A)
(i) and (ii)
(B) (ii) and
(iii)
(C) (i) and
(iii)
(D) (i), (ii)
and (iii)
5. X and Y are partners in a
firm sharing profits in the ratios of 2 : 1. Z is admitted with a 1/3 profit sharing.
What will be the new profit sharing ratio of X, Y and Z ?
(A) 3 : 3 : 3
(B) 4 : 3 : 2
(C) 4
: 2 : 3 (D) 2 : 3 : 4
6. Which one of the
following will not affect the working capital ?
(A)
Realisation of cash from debtors.
(B) Sale of
plant and machinery in cash.
(C) Issue of
equity shares.
(D)
Redemption of debentures.
7. Given below are two
statements, one labeled as Assertion (A) and the other labeled as Reason (R) :
Assertion (A) : When a
company earns profit prior to its incorporation, it is called capital profit.
Reason (R) : Capital profit
cannot be used for distribution as dividend to the shareholders.
In the
context of the above two statements, which one of the following is correct ?
Codes :
(A) (A) is
correct, but (R) is wrong.
(B)
Both (A) and (R) are correct.
(C) (A) is
wrong, but (R) is correct.
(D) Both (A)
and (R) are wrong.
8. Reconstruction of a
company takes place when
(i) the
company is undercapitalised
(ii) company
has incurred heavy losses which must be written off
(iii) the
company is overcapitalised Which one of the following is correct ?
(A) (i) and
(ii) only
(B) (i) and
(iii) only
(C)
(ii) and (iii) only
(D) All the
above
9. Match the items of List –
I with the items of List – II and select the correct answer using the codes
given below the lists:
List – I List – II
(a) Leverage Ratio
(i) Short-term solvency
(b) Liquidity
Ratio (ii) Earning capacity
(c) Turnover Ratio
(iii) Relationship between debt and equity
(d)
Profitability Ratio (iv) Efficiency of Asset Management
Codes :
(a) (b) (c)
(d)
(A) (ii) (i)
(iv) (iii)
(B) (iii)
(ii) (i) (iv)
(C) (iv)
(iii) (i) (ii)
(D)
(iii) (i) (iv) (ii)
10. Given below are two
statements, one labeled as Assertion (A) and the other labeled as Reason (R) :
Assertion (A) : Sinking fund
is a charge against Profit and Loss Account.
Reason (R) : Sinking fund is
created for repayment of a long term liability.
In the
context of the above two statements, which one of the following is correct ?
Codes :
(A) (A) is
correct, but (R) is wrong.
(B)
Both (A) and (R) are correct.
(C) (A) is
wrong, but (R) is correct.
(D) Both (A)
and (R) are wrong.
11. Match List – I with List
– II and select the correct answer using the codes given below the lists :
List – I List – II
(a) Goodwill
of a company (i) Current liability
(b) Overdraft
(ii) Fixed Assets
(c)
Preliminary Expenses (iii) Reserves and Surplus
(d) Premium
on Issue of Shares (iv) Fictitious Assets
Codes :
(a) (b) (c) (d)
(A)
(ii) (i) (iv) (iii)
(B) (i) (ii)
(iv) (iii)
(C) (i) (ii)
(iii) (iv)
(D) (ii) (i)
(iii) (iv)
12. In India, which of the
following is prepared on the guidelines of AS-3 (Accounting Standard – 3) ?
(A) Balance
Sheet of a Company
(B) Funds
Flow Statement
(C)
Cash Flow Statement
(D)
Consolidated Financial Statement
13. What is the correct
sequence of the following actions required for the preparation of financial
accounts ?
(i) Trading accounts
(ii) Making
adjusting entries
(iii) Balance
Sheet
(iv) Profit
and Loss Account
Select the
correct answer from the codes given below :
Codes :
(A) (iv),
(ii), (i), (iii)
(B) (ii),
(iv), (iii), (i)
(C)
(ii), (i), (iv), (iii)
(D) (iv),
(ii), (iii), (i)
14. The main effect of
inflation on the financial statement is
(A) Profits
are understated
(B)
Overstatement of Assets
(C) Adequacy
of funds for replacement of assets
(D)
Erosion of capital
15. Present value of future
earnings is a model of Human Resources Accounting suggested by
(A)
Brauch Lev & ABA Schwartz
(B) Jaggi
& Lau
(C) S.K.
Chakraborty
(D) Eric
Flamhaltz
16. Which element of the
promotion mix do wholesalers generally apply to obtain their promotional
objective ?
(A)
Advertising
(B) Personal Selling
(C)
Trade Promotion
(D) Direct
Marketing
17. Who has given ‘fourteen
Principles of Management’ ?
(A) Barnard
(B)
Henry Fayol
(C) F.W.
Taylor
(D) Flemming
18. What is M.B.O ?
(A)
Management by Objective
(B) Multiple
Business Organisation
(C) Management
by Organisation
(D)
Multiplicity of Business Operations
19. Match items in List – II
with items in List – I :
List – I List – II
I. Mega Marketing
1. Advertising
II.
Penetration Price 2. Kotler
III.
Promotion Mix 3. Low price
IV. Customer Satisfaction
4. Post Purchase Behaviour
Codes :
1 2 3 4
(A) I II III
IV
(B)
III I II IV
(C) IV III II
I
(D) III IV I
II
20. Statement (A) : Sales
promotion has a strong impact on consumer behaviour in rural India.
Reason (R) : Rural people in
India give utmost significance to sales promotion schemes.
Codes :
(A)
Statement (A) is correct but Reason (R) is incorrect.
(B) Statement
(A) is incorrect, but Reason (R) is correct.
(C) Both
Statement (A) and Reason (R) are correct.
(D) Both
Statement (A) and Reason (R) are incorrect.
21. Market sub-divided on
the basis of behavioural characteristics is called
(A)
Segmentation
(B)
Aggregation
(C) Precision
(D) None of
the above
22. What is mass marketing ?
(A)
Offering the same products and marketing mix to all consumers.
(B) Offering
variety of products to the entire market.
(C) Offering
differentiated products to all customers.
(D) Following
concentrated marketing strategy.
23. Which concept of
marketing is based on the assumption that superior products sell themselves ?
(A)
Production (B) Marketing
(C) Societal (D)
Product
24. In broader sense,
marketing communication includes
(A) Product
(B) Price
(C) Place (D)
All
25. Physical distribution
provides
(A) Place
utility
(B) Time
utility
(C)
Place and Time utility
(D) Form
utility
26. What is relevant to
place variable of marketing mix ?
(A) Branding
(B) Price
penetration
(C)
Sales personnel motivation
(D) None
27. Find incorrect statement
:
(A) Marketers
arouse emotional motives
(B) Marketers
satisfy rational motives
(C) Marketers
formulate different sales promotions for different motives
(D)
None of the above
28. Non-store marketing
includes
(A) Home
selling
(B) V.P.P.
(C) Vending
Machines
(D)
All of the above
29. What is customer delight
?
(A) Performance
equal to expectation
(B)
Performance less than expectation
(C)
Performance more than expectation
(D)
Expectation more than performance
30. Which terms are often
used interchangeably in marketing literature ?
(A) Concept,
method, philosophy
(B) Concept,
approach, technique
(C)
Orientation, concept, philosophy
(D)
Philosophy, system, concept
31. Which one of the
following is not the operative function of HRM ?
(A)
Development
(B)
Controlling
(C)
Compensation
(D)
Integration
32. Which one of the following
is not in sequence of personnel training procedure ?
1. Instructor
Preparation
2. Present
the task
3. Try out
performance
4. Training
preparation
5. Follow up
(A) 1, 2, 3,
4, 5
(B) 2, 1, 4,
3, 5
(C)
1, 4, 2, 3, 5
(D) 3, 1, 2,
5, 4
33. Under which method of
performance appraisal one person is compared with all others for the purpose of
placing them in a simple order of work?
(A) Grading
(B) Person to
Person comparison
(C)
Ranking
(D) None of
the above
34. Which one of the
following is not the fundamental procedure that should be considered for the
collective bargaining?
(A)
Prenegotiation phase
(B) Selection
of Negotiators
(C) Tactic
and Strategy of Bargaining
(D)
None of the above
35. Assertion (A) : Inevitably
the firm must go to the external sources for lower entry jobs.
Reason (R) : For positions
where required qualification/ experience are not met.
Codes :
(A) Both (A)
and (R) are not correct.
(B) (A) is
true, but (R) is false.
(C) (R) is
true, but (A) is false.
(D)
Both (A) and (R) are correct.
36. Match the following
items of List – I and List – II :
List – I List – II
1. Asbestos
I. Lung Cancer
2. Benzene
II. Cancer
3. Ethylene Disbromide
III. Leukemia
4. Kerosene
IV. Acute Nervous System Depression
Codes :
I II III IV
(A) 4 2 3 1
(B) 4 3 2 1
(C) 1
3 2 4
(D) 3 4 2 1
37. Assertion (A) : Business
Economics is tool centrics facilitating decision making in business.
Reason (R) : It provides an analytical
understanding of economic activities.
Codes :
(A) Both (A)
and (R) are not correct.
(B)
Both (A) and (R) are correct.
(C) (A) is
true, but (R) is false.
(D) (R) is
true, but (A) is false.
38. Demand has the following
elements :
(A) Quantity
(B) Price
(C) Time
(D)
All the above
39. A perfectly competitive
firm attains equilibrium when
(A) AC = AR
(B)
MR = MC
(C) MC = AC
(D) TC = TR
40. The purpose of job
evaluation is
(A) Fixation
of Responsibility
(B) Promotion
(C)
Wage Determination
(D) Transfer
to a better job
41. For testing of
hypothesis H0 : M1 = M2 and H1 : M1 < M2, the critical value of Z at 5%
level of significance when size of sample is more than 30 is
(A) 1.96 (B)
2.32
(C)
1.645 (D) 2.5758
42. Which of the following
is the nonrandom method of selecting samples from a population ?
(A)
Stratified Sampling
(B)
Quota Sampling
(C)
Systematic Sampling
(D) Cluster
Sampling
43. If the two regression
coefficients are 0.8 and 0.2, then the value of coefficient of correlation is
(A) + 0.16
(B) – 0.40
(C) – 0.16 (D) +
0.40
44. Which one of the
following is a relative measure of dispersion ?
(A) Standard
deviation
(B) Variance
(C)
Coefficient of variation
(D) None of
the above
45. Assertion (A) : Internal
factors of business environment are controllable factors.
Reason (R) : The company can
alter or modify such factors to suit the environment.
Codes :
(A)
Both (A) and (R) are correct.
(B) (A) is
correct, but (R) is incorrect.
(C) Both (A)
and (R) are incorrect.
(D) (A) is
incorrect.
46. The concept of ‘Rolling
Plan’ in India was introduced by the
(A) BJP Government
(B)
Janta Government
(C) Congress
Government
(D) All of
the above
47. Which one of the
following is an obstacle to globalisation ?
(A) Wide base
(B) Niche
markets
(C)
Obsolescence
(D)
Competition
48. ‘VSAT’ technology is
first followed for on-line trading by
(A) BSE (B)
OTCEI
(C)
NSE (D) ISE
49. Match the following :
List – I List – II
Years Act
(a) 1956 (i)
Consumer Protection Act
(b) 1986 (ii)
Indian Companies Act
(c) 1992
(iii) Securities and Exchange Board of India
(d) 2002 (iv)
Securitisation Act
Codes :
(a) (b) (c) (d)
(A)
(ii) (i) (iii) (iv)
(B) (i) (ii)
(iii) (iv)
(C) (ii)
(iii) (i) (iv)
(D) (i) (iv)
(iii) (ii)
50. The flagship project of
Government of India launched for generating guaranteed employment in rural
areas is known as
(A) PMRY (B)
MNREGA
(C) JRY (D)
NREP
51. The conflicts in project
ranking in capital budgeting as per NPV and IRR may arise because of
(A) Size
disparity
(B) Time
disparity
(C) Life
disparity
(D)
All the above
52. The degree of financial
leverage reflects the responsiveness of
(A) Operating
income to changes in total revenue
(B)
EPS to changes in EBIT
(C) EPS to
changes in total revenue
(D) None of
the above
53. The overall
capitalisation rate and the cost of debt remain constant for all degrees of
financial leverage is advocated by
(A)
Traditional Approach
(B) Net
Income Approach
(C)
Net Operating Income Approach
(D)
M-M-Approach
54. Which of the following
is not included in the assumptions on which Myron Gordon proposed a model on
stock valuation ?
(A) Retained
earnings, the only source of financing
(B)
Finite life of the firm
(C) Taxes do
not exist
(D) Constant
rate of return on firm’s investment
55. Match the following :
List – I List – II
(i) Factoring
services (a) Cash Management
(ii) Economic
Order Quantity (b) Receivable Management
(iii)
Commercial paper (c) Inventory Management
(d)
Working Capital Financing
Codes :
(i) (ii) (iii)
(A) (a) (c)
(b)
(B) (c) (b)
(a)
(C)
(b) (c) (d)
(D) (b) (a)
(c)
56. Assertion (A) : International
business focuses on global resources, opportunities to buy/sell worldwide.
Reason (R) : The efforts of
IMF, World Bank and WTO to liberalise their economies led to globalisation.
Codes :
(A)
Both (A) and (R) are true.
(B) Both (A)
and (R) are false.
(C) (A) is
true, but (R) is false.
(D) (A) is
false, but (R) is true.
57. Match the items of List
– I with items of List – II :
List – I List – II
(i) Wider
Market 1. Modes of Entry
(ii) Turn key
Projects 2. Goal of International Business
(iii) Expanding
the production capacities 3. Advantages of International Business
(iv)
Geocentric approach 4. Stage of Globalisation
Codes :
(i) (ii) (iii) (iv)
(A) 4 2 3 1
(B) 3
1 2 4
(C) 1 2 3 4
(D) 4 3 2 1
58. BRICS includes
(A) Bhutan,
Romania, Indonesia, Chile and South Korea
(B) Brazil,
Russia, Indonesia, Chile and Sudan
(C)
Brazil, Russia, India, China and South Africa
(D) Britain,
Russia, India, Czechoslovakia, Sri Lanka
59. Out of the following,
one is not related with WTO :
(A) TRIPS
(B) Ministerial
Conference
(C) TRIMS
(D)
TRAI
60. Balance of Payment
includes components
(A)
Current Account, Capital Account, Unilateral Payments Accounts, Official
Settlement Account
(B) Revenue
Account, P & L Account, Capital Account, Official Account
(C) Trade
Account, Activity Account, Revenue Account, Currency Account
(D) Forex
Account, Trade Account, Funds Account
61. Assertion (A) : International
Monetary Fund was set up in 1944.
Reason (R) : To promote international
monetary cooperation through a permanent institution which provides machinery for
consultation and collaboration on international monetary problems.
Codes :
(A) Both (A)
and (R) are false.
(B)
Both (A) and (R) are true.
(C) (A) is
true, but (R) is false.
(D) (R) is
true, but (A) is false.
62. The commercial banks do
not perform one function out of the following :
(A)
Mobilisation of savings
(B) Giving
Loans and Advances
(C)
Issuing Currency Notes
(D) Financing
Priority Sectors
63. There are two lists of
items, match the items of List – I with items of List – II :
List – I List – II
I. Reserve
Bank of India 1. NPA
II. EXIM Bank
2. Facilitating Small Scale Industries
III. SIDBI 3.
Credit Control
IV. Capital Adequacy
4. Export/Import Financing
Codes :
I II III IV
(A) 1 2 3 4
(B) 4 3 2 1
(C) 2 3 4 1
(D) 3
4 2 1
64. One of the items is not
related with e-banking :
(A)
Demand Draft
(B) SPNS
(C) ECS
(D) ATM
65. Assertion (A) : The
Treasury Manager uses the derivatives in the Bond market as well as in Forex
market.
Reason (R) : It helps risk
coverage.
Codes :
(A) Both (A)
and (R) are false.
(B)
Both (A) and (R) are true.
(C) (A) is
true, but (R) is false.
(D) (R) is
true, but (A) is false.
66. Factoring and forfeiting
have not taken off in the Indian economy due to lack of expertise and experience.
One is not included in the factoring services rendered.
(A) Purchase
of book debts and receivables.
(B)
Prepayment of debts partially or fully
(C)
Giving advice
(D) Covering
the credit risk of the suppliers
67. Which one is not the
form of FDI ?
(A) Purchase
of existing assets in foreign currency
(B) New
Investment in property, plant, equipment
(C)
Making investment in the mutual funds
(D) Transfer
of many types of assets
68. Match the items of List
– I with items of List – II :
List – I List – II
1. Measures towards
globalization I. Globalisation
2.
Off-shoring II. FEMA
3. FERA III.
Liberalise the inflow of FDI
4. Mr.
Aruthur Dunkel IV. Uruguay Round
Codes :
1 2 3 4
(A)
III I II IV
(B) II I III
IV
(C) IV II I
III
(D) I II IV
III
69. Which one of the
following is not the advantage of MNCs to the host country ?
(A)
Increase in social activity
(B) Increase
in economic activity
(C)
Utilisation of natural resources
(D) R & D
efforts enhanced
70. India suffered from
deficit balance both in trade balance and net invisibles, hence, took up a
number of steps to manage this problem. Which one is not appropriate for this ?
(A)
Export control
(B) Current
Account Convertibility
(C)
Liberalised Export Policy
(D) Unified
Exchange Rate
71. Mr. James, a citizen of
U.S., arrived in India for the first time on 1st July, 2010 and left for Nepal
on 15th December 2010. He arrived to India again on 1st January 2011
and stayed till the end of the financial year 2010-11. His residential status
for the assessment year 2011-12 is
(A) Resident
(ordinarily resident)
(B)
Not ordinarily resident
(C)
Non-resident
(D) None of
the above
72. The value of free
accommodation in Delhi provided by employer in the private sector is
(A) 10% of
salary
(B)
15% of salary
(C) 20% of
salary
(D) 25% of
salary
73. Which of the following
is not a capital asset under capital gains head of income ?
(A)
Stock in trade
(B) Goodwill
of business
(C)
Agricultural Land in Delhi
(D) Jewellery
74. Match the items of List
– I with List – II :
List – I List – II
I. Tax Planning
1. Making suitable arrangement of TDS
II. Tax Avoidance
2. Understatement of Income
III. Tax
Evasion 3. Availing deduction under Section 10A of IT Act.
IV. Tax
Administration 4. Misinterpreting the provisions of the IT Act
Codes :
I II III IV
(A) 2 1 4 3
(B) 1 4 3 2
(C) 3
4 2 1
(D) 4 1 3 2
75. Under the Income Tax
Act, 1961 unabsorbed depreciation can be carried forward for set-off purpose :
(A) For 4
years
(B) For 5
years
(C) For 8
years
(D)
For unspecified period