M.Com Entrance Test
Solved Question Paper’ 2020
Dibrugarh University
1. Human resource
management involves the elements of:
(A) Planning,
Organising and Controlling
(B) Planning,
Organising and Coordinating
(C) Leading,
Directing and Coordinating
(D) All of the
above
Ans: (D) All of the above
2. Purchase of office equipment results in:
(A) Decrease in
liability
(B) Decrease in
capital
(C) Increase in
capital
(D) Increase in
assets
Ans: (D) Increase in assets
3.
"Subscriptions collected in advance by a publisher of a magazine” should
be classified as:
(A) Accrued
Profits
(B) Future
Profits
(C) Unearned
revenue
(D)
Pre-publication receipts
Ans: (C) Unearned revenue
4. The content of
Job description involves:
(A) Job title,
conditions of work
(B) Educational
qualification, skills
(C) Both (A) and
(B)
(D) None of the
above
Ans: (A) Job title, conditions of work
5. Insurance
premium paid by the firm on the life insurance policy of a partner is:
(A) Credited to
partner's Capital account
(B) Credited to
Profit and Loss account
(C) Debited to
Capital account of the partner
(D) None of the
above
Ans: (C) Debited to Capital account of the partner
6. Unclaimed
dividends are shown on the liability side of the Balance Sheet under the
heading:
(A) Current Liabilities
(B) Current
Assets
(C) Reserves and
Surplus
(D) Provisions
Ans: (A) Current Liabilities
7. What are the
major hurdles that require action by HRM for the progress of Indian economy?
(A) Dishonesty
and corruption.
(B) Lack of
interest in work and production loss.
(C) Unemployment
and poverty.
(D) Combating
inflation.
Ans: (C) Unemployment and poverty.
8. Depreciation
means:
(A) Physical
deterioration of a fixed asset
(B) Allocation of
the cost of fixed asset over its useful life
(C) Decline in
the market value of the asset
(D) None of the
above
Ans: (B) Allocation of the cost of fixed asset over its
useful life
9. Payment of
interim dividend is a
(A) Source of
fund
(C) No flow of fund
(B) Application
of fund
(D) None of the
above
Ans: (B) Application of fund
10. Who is generally
known as “the father of modern management theory”?
(A) Henry Fayol
(B) F. W. Taylor
(C) Frank
Gilbreth
(D) Chester
Bernard
Ans: (A) Henry Fayol
11. When current
ratio is 2:5 and the amount of current liabilities is Rs. 25,000 what is the
amount of current assets?
(A) Rs. 12,500
(B) Rs. 10,000
(C) Rs. 30,000
(D) Rs. 15,000
Ans: (B) Rs. 10,000 (Watch my video to learn calculation
of current ratio)
12. Which of the
following item is not an operating expense?
(A) Advertisement
(B) Depreciation
of Office Equipment
(C) Salaries of
the managerial staff
(D) Loss incurred
on the sale of old motor vehicle
Ans: (D) Loss incurred on the sale of old motor vehicle
[Hint: Operating expenses does not include
loss on sale of assets]
13. Which of the
following is considered the first wage incentive plan in modern industrial era?
(A) Halsey plan.
(B) Taylor's
differential piece-rate plan.
(C) Gantt Task
plan.
(D) Barth plan.
Ans: (B) Taylor's differential piece-rate plan.
14. Nurseries and
selling plants etc. should be classified as:
(A) Extractive
industry
(B) Genetic
industry
(C) Manufacturing
industry
(D) Construction
industry
Ans: (B) Genetic industry
15. Four paper
mills merge and form a new company. It is a case of
(A) Horizontal
combination
(B) Vertical
combination
(C) Lateral
combination
(D) Circular
combination
Ans: (A) Horizontal combination
[Hint:
Horizontal combination = Companies deals in same products.
Vertical
combination = Companies deals in Different products.
Lateral
combination = Company of same size
Circular
combination = Companies operating in same general market with different product]
16. Concept of
MBO was first developed by
(A) Peter Drucker
(B) Douglas
McGregor
(C) Henry Fayol
(D) Clayton P. Alderfer
Ans: (A) Peter Drucker
17. A foul bill
of lading is issued when
(A) Goods are a
stolen property
(B) Goods are
damaged
(C) Goods are not
properly packed
(D) Goods are
substandard
Ans: (B) Goods are damaged
18. An indent in
foreign trade means
(A) A list of
forwarding agents
(B) An order
containing terms of trade
(C) A list made
by supplier of goods
(D) All of the
above
Ans: (B) An order containing terms of trade
19. Change
Management is
(A) A systematic
approach in dealing with change from the individual and organisational level
(B) A gradual
process of approach in the workplace due to new policies, technology or even a
new boss
(C) Both (A) and
(B)
(D) None of the
above
Ans: (C) Both (A) and (B)
20. Accounting
information given by a company is as follows:
Total assets
turnover - 3 times
Net profit margin
10%
Total assets –
Rs. 1, 00,000
Find out the net profit:
(A) Rs. 10,000
(B) Rs. 15,000
(C) Rs. 25,000
(D) Rs. 30,000
Ans: (D) Rs. 30,000
21. The bill of
exchange drawn by exporter on the importer is known as
(A) Documentary
bill
(B) Bill of trade
(C) Bill of sight
(D) Bill of entry
Ans: (A) Documentary bill
22. Social factor
having a potent bearing on HRM practices in India includes
(A) Caste system
(B) Doctrine of
karma
(C) Customs and
traditions
(D) All of the
above
Ans: (A) Caste system
23. Which of the
following is an error of commission?
(A) A sale of Rs.
256 omitted to be recorded.
(B) Treating
charges as addition to asset.
(C) A purchase of
Rs. 560 was wrongly posted
(D) Sales Book
over-cast by Rs. 200 and purchase book was under-cast by the same amount
Ans: (C) A purchase of Rs. 560 was wrongly posted
24. In the
Balance Sheet of a company, assets are arranged in the order of their
(A) Book value
(B) Liquidity
(C) Permanence
(D) Market value
Ans: (C) Permanence
[Hint: First
fixed assets are shown and thereafter current assets are shown]
25. Which of the
following is a demerit of time as the basis of wages?
(A) It is simple.
(B) It is liked
by trade unions.
(C) All workers
are paid equal remuneration.
(D) It does not
cause workers to overwork.
Ans: (D) It does not cause workers to overwork.
26. The following
are the examples of financial assets except:
(A) Stocks
(B) Bank loan
(C) Bond
(D) Jewellery
Ans: (D) Jewellery
27. A particular
investment is risky because:
(A) It is
dangerous
(B) It has low
returns
(C) Its returns
are uncertain
(D) Its raw
material is unavailable
Ans: (C) its returns are uncertain
28. Which from
the following is the safest investment?
(A) Treasury
bills
(B) Government
bond
(C) Corporate
bond
(D) Stocks
Ans: (A) Treasury bills
29. Regular
interest payment to debenture holders is called:
(A) principal
(B) Coupon rate
(C) Face value
(D) Rate of
return
Ans: (B) Coupon rate
30. Underwriters
are also called:
(A) Book runner
(B) Shareholders
(C) Subscribers
(D) Angel
investors
Ans: (A) Book runner
31. GATT is an
abbreviation for:
(A) General
Agreement on Transport and Trade
(B) General
Agreement on Tariffs and Trade
(C) Generally
Accepted Telegraphic Transfer
(D) Generally
Accepted on Trade and Telegraph
Ans: (B) General Agreement on Tariffs and Trade
32. Which of the
following is an example of a credit sale?
(A) Buying
furniture with a debit card.
(B) Exchanging a
mobile with a new one.
(C) Leasing land
for one year.
(D) Buying a car
with a deposit and installments.
Ans: (D) Buying a car with a deposit and installments.
33. What
standards are used to prepare financial statements by most of the countries and
companies?
(A) International
Financial Reporting Standards.
(B) International
Financial Accounting Standards.
(C) International
Accounting & Auditing Standards.
(D) Generally
Accepted Accounting Principles.
Ans: (A) International Financial Reporting Standards.
34. The _______________
certify or guarantee that the financial statements are correct.
(A) Management
(B) Board of
governors
(C) Auditor
(D) Auditor does
not
Ans: (C) Auditor
35. A particular firm provided the following
data for a year - Current Ratio 2.5:1 Liquid Ratio 1.5:1. Net Working Capital
Rs. 3, 00,000. What are the current assets and current liabilities of this
firm, respectively?
(A) Rs. 3, 00,000
and Rs. 1, 50,000.
(B) Rs. 5, 00,000
and Rs. 2, 00,000.
(C) Rs. 2, 00,000
and Rs. 5, 00,000.
(D) Rs. 3, 00,000
and Rs. 1, 00,000.
Ans: Ans: (B) Rs. 5, 00,000 and Rs. 2, 00,000. (Watch my
video to learn calculation of current ratio)
36. Which of the
following is not a Nominal Account?
(A) Salaries
account.
(B) Interest
paid.
(C) Commission
received.
(D) Outstanding
wages account.
Ans: (D) Outstanding wages account.
37. A debit entry
usually represents:
(A) Assets and
Expenses
(B) Assets and
Income
(C) Liabilities
and Income
(D) Liabilities
and Expenses
Ans: (A) Assets and Expenses
38. Banks can
avail refinance against loans made to industrial units from:
(A) DICGC
(B) NABARD
(C) ECGC
(D) IDBI
Ans: (D) IDBI
39. What is the
full form of CBS?
(A) Core Banking
Solution.
(B) Core Banking
Software.
(C) Core Banking
System.
(D) Core Banking
Service.
Ans: (A) Core Banking Solution.
40. Fiscal policy
refers to:
(A) Sale and
purchase of securities by RBI
(B) Government
taxes, expenditure and borrowings
(C) Government
borrowings from abroad
(D) Sharing of
its revenue by Central Government with States
Ans: (B) Government taxes, expenditure and borrowings
41. The present
chairman of SEBI
is
(A) Ajay Tyagi
(B) U. K. Sinha
(C) C. B. Bhave
(D) Vijay C.
Kelkar
Ans: (A) Ajay Tyagi
42. A lame duck
is a.
(A) Bull who does
not keep his promise.
(B) Bear who
cannot keep his commitments
(C) Cautious
speculator
(D) Premium
hunter
Ans: (B) Bear who cannot keep his commitments
43. The
regulatory body of mutual funds
in India is:
(A) RBI
(B) SEBI
(C) IRDA
(D) Government
Ans: (B) SEBI
44. Closing stock
is valued at –
(A) Cost
(B) Market value
(C) Cost or
market price whichever is lower
(D) None of the
above
Ans: (C) Cost or market price whichever is lower
45. Super Profit
mean
(A) Average
Profit – Net Profit
(B) Average
Profit - Normal rate of return
(C) Weighted
Average Profit
(D) Net Profit –
Average Profit
Ans: (B) Average Profit - Normal rate of return
46. Income tax is
levied on total income of ____________ of an assessee.
(A) Previous Year
(B) Current Year
(C) Any of (A) or
(B)
(D) Both (A) and
(B)
Ans: (A) Previous Year
47. The
provisions for determining the residential status of a person are contained in:
(A) Section 5
(B) Section 6
(C) Section 7
(D) Section 8
Ans: (B) Section 6
48. There are
__________ heads of Income under Income
Tax Act, 1961.
(A) three
(B) Four
(C) five
(D) six
Ans: (C) five
49. Health and
Educational cess for the AY2020-21 is levied at the rate of
(A) 2%
(B) 1%
(C) 3%
(D) 4%
Ans: (D) 4%
50. Dividend from
an Indian Company is
(A) Fully Taxable
(B) Taxable @ 10%
(C) Fully
Exempted
(D) None of these
Ans: (A) Fully Taxable
[Hint: In terms of the provisions of the
Income-tax Act, 1961, ("the Act") as amended by the Finance Act,
2020, dividend paid or distributed by a Company on or after April 01, 2020
shall be taxable in the hands of the shareholders]
51. Which of the
following is not an objective of financial accounting?
(A) To provide
information about the enterprise's assets, liabilities and capital.
(B) To provide
information on the personal assets information on the personal assets and
liabilities of the owner of an enterprise.
(C) To maintain
records of business transactions.
(D) To provide
information on the performance of an enterprise.
Ans: (B) To provide information on the personal assets
information on the personal assets and liabilities of the owner of an
enterprise.
52. The
information provided in the annual financial statements of an enterprise pertains
to:
(A) Individual
business enterprise
(B) Business and
industries
(C) The economy
as a whole
(D) None of the
above
Ans: (A) Individual business enterprise
53. During the
life time of an entity the accountants produce financial statements at
arbitrary in accordance with which accounting principles?
(A) Conservatism.
(B) Materiality.
(C) Periodicity.
(D) Cost-benefit.
Ans: (C) Periodicity.
54. The
accounting principle that conforms to the tendency of accountants to resolve
uncertainty and doubt in favour of understanding assets and revenues and
overstating liabilities and expenses is known as:
(A) Industry
practice
(B) Materiality
(C) Conservatism
(D) None of the
above
Ans: (C) Conservatism
55. Revenue is
generally recognized at the point of sale of a product/service. Which principle
is applied herein?
(A) Consistency.
(B) Revenue
recognition.
(C) Cost
principle.
(D) None of the
above.
Ans: (B) Revenue recognition.
56. When
information about two different enterprises has been prepared and presented in
a similar manner, the information exhibits the characteristics of:
(A) Relevance
(B) Reliability
(C) Consistency
(D) None of the
above
Ans: (D) None of the above. Correct Answer is
Comparability
57. The
assumption that a business enterprise will not be sold/winded up in the near
future is known as:
(A) Economic
entity
(B) Monetary unit
(C) Prudence
(D) None of the
above
Ans: (D) None of the above. Correct answer is Going
Concern Concept.
58. Primary
qualities that make accounting information useful for decision making are:
(A) Comparability
and consistency
(B) Materiality
and timeliness
(C) Relevance and
freedom from bias
(D) Reliability
and relevance
Ans: (D) Reliability and relevance
59. Which of the
following is correct?
(A) Assets =
Liabilities - Capital.
(B) Assets =
Capital – Liabilities.
(C) Assets =
Liabilities + Capital.
(D) Assets =
Equities - Current liabilities.
Ans:
60. Liabilities
of a firm are Rs. 16,000 and the capital of the proprietor is Rs. 20,000 total
assets are :
(A) Rs. 36,000
(B) Rs. 4,000
(C) Rs. 20,000
(D) None of the
above
Ans: (A) Rs. 36,000
61. According to
the Companies Act, 2013 the preparation and presentation of financial
statements should be in conformity to:
(A) Section 211
read with the schedule VI
(B) Section 129
read with the schedule III
(C) Section 209
(D) All of the
above
Ans: (B) Section 129 read with the schedule III
62. Which of the
following is not a part of non-current fixed assets in a company Balance Sheet?
(A) Tangible
assets.
(B) Intangible
assets.
(C) Capital work
in progress.
(D) Deferred tax
assets.
Ans: (D) Deferred tax assets.
63. Which one of
the following is not a reason which may be advanced to account for the individual's
time preference for money?
(A) Uncertainty.
(B) Preference
for consumption.
(C) Investment
opportunities.
(D) Past
expenses.
Ans: (D) Past expenses.
[Hint: Reasons for Individual’s Time
preference for money:
1) Risk: There is always uncertainty in receipt
of money in future. That’s’ why most of the individual have preference for
present money.
2) Preference for consumption: Most of the
individual have a preference for present consumption of money due to urgent
need.
3) Investment opportunities: Most of the individuals
have preference for present money because of availabilities of various
investment opportunities of investment for earning additional cash flows.]
64. Which one of
the following is not an investment evaluation criterion?
(A) Estimation of
future cash inflows and outflows.
(B) Estimation of
required rate of return.
(C) Application
of the decision rule for making choice.
(D) Estimation of
future liabilities.
Ans: (C) Application of the decision rule for making
choice.
65. Which of the
following rules based on Net Present Value (NPV) is incorrect?
(A) Accept, when
NPV is smaller than zero.
(B) Accept, when
NPV greater than zero.
(C) May accept
when NPV is equal to zero.
(D) Reject when
NPV is smaller than zero.
Ans: (B) Accept, when NPV greater than zero.
66. If a general
manager asks the sales manager to recruit some salesmen on his behalf, it is an
instance of —
(A) Division of
authority
(B) Decentralization
of authority
(C) Delegation of
authority
(D) Delegation of
responsibility
Ans: (A) Division of authority
67.
‘Non-convertible' debentures refers to
(A) Owners
Capital
(B) Loan Capital
(C) Short Term
Debts
(D) All of the
above
Ans: (B) Loan Capital
68. Human
Resource departments are
(A) Line
department
(B) Authority
department
(C) Functional
department
(D) Service
department
Ans: (D) Service department
69. Income and
Expenditure Account of a school will be debited with --
(A) Annual prizes
given out of Prize Fund
(B) Cost of maps
on Geography
(C) Fines
realized from students
(D) Tuition fees
Ans: (B) Cost of maps on Geography
70. The term
depletion is used in relation to –
(A) Fixed Assets
(B) Wasting
Assets
(C) Current
Assets
(D) Intangible
Assets
Ans: (B) Wasting Assets (It includes Natural resources
and Depletion is related with natural resources)
71. Job Analysis
is a systematic procedure for securing and reporting information defining a:
(A) Specific job
(B) Specific
service
(C) Specific
Product
(D) All of these
Ans: (A) Specific job
72. M.B.O. is a
technique which requires that the objectives of the enterprise
(A) Be written
and defined in broad terms
(B) Lay down the
time period for achieving the results
(C) Include a
plan of action for achieving the desired results
(D) Be defined in
terms of measurable results
Ans: (D) Be defined in terms of measurable results
73. FIFO is
advisable in case of:
(A) Rising prices
(B) Falling
prices
(C) Constant
prices
(D) None of the
above
Ans: (B) Falling prices
74. Human
Resource planning is compulsory for:
(A) Effective employee
development programme
(B) Base for
recruitment
(C) Base for
selection policy .
(D) All of these
Ans: (D) All of these
75. Span of
control means that:
(A) An
organization consists of various departments
(B) Each person's
authority is clearly defined
(C) Every
subordinate has one superior
(D) A manager can
supervise only a limited number of subordinates
Ans: (D) A manager can supervise only a limited number of
subordinates
76. The persons
who agree to insure cargo, hull or freight are called:
(A) Undertakers
(B) Caretakers
(C) Underwriters
(D) Book Keepers
Ans: (C) Underwriters
77. Who laid the
foundation of HRM practices?
(A) Elton Mayo
(B) Mary Parker
Follett
(C) Peter Ducker
and Douglas McGregor
(D) Davis
McClelland
Ans: (C) Peter Ducker and Douglas McGregor
78. Which of the
following management functions are closely related?
(A) Planning and
Organizing.
(B) Staffing and
Control.
(C) Planning and
Control.
(D) Planning and
Staffing.
Ans: (C) Planning and Control.
79. Window
dressing is prohibited due to:
(A) Convention of
conservation
(B) Convention of
disclosure
(C) Convention of
materiality
(D) Accrual
concept
Ans: (B) Convention of disclosure
80. Job
Specification includes:
(A) Physical
characteristics
(B) Psychological
characteristics
(C) Personal
characteristics
(D) All of these
Ans: (D) All of these
81. Goodwill
should be classified as a
(A) Current asset
(B) Liquid asset
(C) Floating
asset
(D) Intangible
asset
Ans: (D) Intangible asset
82. The
preparation of a Trial Balance helps in locating:
(A) Compensating
errors
(B) Error of omission
(C) A clerical
error
(D) None of these
Ans: (C) A clerical error
83. TQM's major
emphasis is on :
(A) Product
quality
(B) Company
profitability
(C) Customer
satisfaction
(D) Employee
training
Ans: (A) Product quality
84. Consider the
following:
1. Export Duty
2. Export Subsidy
3. Liberal Import
entitlement
4. Revaluation of Currency
Which of the
above policy measure would lead to an expansion of exports ?
(A) 1, 2 and 4
(B) 1 and 3
(C) 2 and 4
(D) 2 and 3
Ans: (C) 2 and 4
85. Which of the
following is non-current liability ?
(A) Long term
loans.
(B) Current
liabilities.
(C) Bank
overdraft.
(D) Sundry
creditors.
Ans: (A) Long term loans.
86. What is the
scope of HRM ?
(A) Training and
development of employees for their growth
(B) Maintenance
of good industrial relations and worker's morale for higher productivity.
(C) Further
research in behavioural science, management and advances in the field of
training and development.
(D) None of the
above.
Ans: (C) Further research in behavioural science,
management and advances in the field of training and development.
87. Stock
turnover ratio is calculated as
(A) Turnover at
cost/Stock at cost
(B) Turnover at
selling prices/Stock at cost
(C) Turnover at
selling prices/Stock at selling prices
(D) Any of these
Ans: (A) Turnover at cost/Stock at cost
88. Which of the
following is a document of the title of goods ?
(A) Bill of
Lading
(B) Shipping Bill
(C) Bill of Entry
(D) Letter of
Credit
Ans: (D) Letter of Credit
89. What is the
importance of controlling?
(A) Ensure that
activities are in accordance with the terms of the plan.
(B) An important
mental process on the part of a manager.
(C) Power to
influence people's behavior.
(D) Process of
regulating the activities.
Ans: (A) Ensure that activities are in accordance with
the terms of the plan.
90. The primary function
of an office is:
(A) Remunerating
personnel
(B) Carrying out
the management policies
(C) Safeguarding
of company's assets
(D) Making, using
and preserving records
Ans: (D) Making, using and preserving records
91.When net profit is Rs. 2,45,000, taxes Rs.
45,000 and net worth Rs. 10,00,000. What is the rate of return on shareholders'
equity ?
(A) 10%
(B) 15%
(C) 20%
(D) 25%
(C) 20%
Ans: (C) 20%
92. What should
be the strategy of HRM ?
(A) Making the
long-term and short-term planning.
(B) Planning the
optimum level of manpower.
(C) Introducing
training programme to personnel.
(D) All of these.
Ans: (D) All of these.
93. A company is
called an artificial person because
(A) It does not
have the shape of a normal man
(B) It cannot be
sued in the court of law
(C) It is
invisible and intangible
(D) It exists
only in contemplation of Law
Ans: (D) It exists only in contemplation of Law
94. In
calculating the return on capital employed, the profit figure to be taken into
account is:
(A) Net profit
after deducting interest
(B) Net profit
after taxes
(C) Net profit
after taxes and interest
(D) Net profit
after taxes, interest and dividends
Ans: (C) Net profit after taxes and interest
95. Quality
improvement is
(A) A team effort
(B) Achieved by
quality Inspector
(C) Zero things
gone wrong
(D) Hard job and
not possible
Ans: (B) Achieved by quality Inspector
96. Any donation
received for a specific purpose is a
(A) Liability
(B) Asset
(C) Revenue
receipt
(D) Capital
receipt
Ans: (D) Capital receipt
97. Internal
audit is helpful in:
(A) Making record
ready for official audit
(B) Prevention of
errors and frauds
(C) Detection of
errors and frauds
(D) Auditing for
self-satisfaction
Ans: (C) Detection of errors and frauds
98. What is
Laissez-faire view point?
(A) A minimum
public intervention in economic activities.
(B) Business
enterprise must get opportunity to earn more profit.
(C) The change in
the concept of labour from commodity approach to human concept.
(D) None of the
above.
Ans: (A) A minimum public intervention in economic
activities.
99. Gross capital
employed is equal to:
(A) Fixed assets
(B) Fixed
interest plus current assets
(C) Current
assets
(D) None of the
above
Ans: (B) Fixed interest plus current assets
100. Sale of a
building results into -
(A) Source of
fund
(B) Application
of fund
(C) No flow of
fund
(D) None of the
above
Ans: (A) Source of fund
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