PYQ 72

              Assistant-Kerala Financial Corporation      Cat.No;004/2019 

                     Question Code:49/2019 :   Date of Test : 19/10/2019  

ANSWER KEY

1 . Revenue received from the sale of goods Is treated as an earnings during the period in which 

(A) the sale is made 

(B) the products are manufactured 

(C) the cash is collected 

 (D) the planning takes place 

2 . Which Accounting Standard deals with revenue recognition ? 

(A) IAS 12  

(B) IAS 18 

(C) IAS 28  

(D) IAS 17 

3 . Which Accounting Convention states that accounting practices should
remain unchanged from time to time ? 

(A) Full disclosure 

(B) Conservatism 

(C) Materiality 

(D) Consistency 

4 . Repairs incurred before using a second - hand van purchased recently is a 

(A) Capital Expenditure 

(B) Revenue Expenditure 

(C) Deferred Revenue Expenditure 

(D) None of these 

5 . State the minimum percentage of profit that has to be transferred to General Reserve
by a Joint Stock Company if the dividend declared is 18 %  

(A) 0 %

(B) 10 % 

(C) 7.5 % 

(D) 5 % 

6 . Income Tax paid by a sole Proprietor on his business Income should be 

(A) Debited to profit and Loss Account 

(B) Debited to Trading Account 

(C) Credited to profit and Loss Account 

(D) Deducted from Capital Account in the Balance Sheet 

7 . The cancellation of shares at the initiative of the shareholder is termed as 

(A) Forfeiture 

(B) Underwriting 

(C) Surrender 

(D) None of the accounts 

8 . The profit on depreciation policy is transferred to  

(A) Depreciation Reserve Account 

(B) Profit and Loss Account 

(C) Asset Account - 

(D) Balance Sheet

9 . Donations received by Non - profit - making Organizations for a special purpose taken to the

 (A) Income and Expenditure Account 

(B) Assets side of the Balance sheet - 

(C) Liability side of the Balance Sheet 

(D) Will not be considered at all 

10 . Under Single Entry system , the amount of opening stock can be ascertained by preparing
a / an 

(A) Memorandum Trading Account  

(B) Total Creditors Account 

(C) Opening Statement of Affairs  

(D) None of these 

11 . If the rate of gross profit is 20 % on cost of goods sold and the sales is
Rs . 1 , 00 , 000 , the amount of gross profit will be 

(A) Rs.25 , 000  

(B) Rs.16, 667 

(C) Rs.20,000  

(D) Rs.28,000 

12.On selzure of goods by the hire verdot in a Hire Purchase deal , the balance
in the asset account is transferred to 

(A) Profit and Loss Account  

(B) Goods Repossessed Account 

(C) Recovery Account  

(D) Hire Vendor's Account 

13. Amount collected by a company as Security Premium should be used to 

(A) Issue fully paid Bonus Shares 

(B) Write off Preliminary expenses 

(C) To buy back the Company ' s owri shares 

(D) All of the above 

14.A predetermined cost of an activity , operation or process established as
a basis for control and reporting is known as 

(A) Social cost 

(B) Sunk cost 

(C) Standard cost 

(D) Total cost

15.Dividend declared by Board of Directors in between two Annual General
Body meeting is known as 

(A) Proposed dividend 

(B) Unclaimed dividend 

(C) Scrip dividend 

(D) Interim dividend

16.if vendors are issued fully paid shares of Rs.1,00 000 In consideration of net asset
worth Rs,85,000 , the balance of Rs.15,000 will be debited to 

(A) Profit and Loss Account 

(B) Goodwill Account 

(C) Capital Reserve Account 

(D) None of these 

17.The balance in the Share Forfelted Account after the reissue of forfeited shares his
transferred to 

(A) Reserve Capital 

(B) Share capital

(C) Capital Reserve  

(D) Profit and Loss Accourit 

18.A right of one person to satisfy a claim against another by holding or retaining
the possession of others property is termed as 

(A) Right shares 

(B) Legacy 

(C) Lien 

(D) Underwriting 

19.The balance of the Debenture Sinking Fund account after redemption of
Debentures is transferred to 

(A) Profit and Loss Account 

(B) Capital Reserve 

(C) Debenture Redemption Fund Account 

(D) General Reserve 

20.The shares issued as part of capitalisation of reserves 

(A) Bonus share 

(B) Right shares 

(C) Preference share  

(D) None of these 

21.Loss sufferred from the date of acquisition of business to the date of
incorporation should be debited to 

(A) Goodwill Account 

(B) Profit and Loss Account 

(C) Capital Reserve Account  

(D) Preliminary Expenses Account 

 22.Reduction of Share Capital requires the permission of 

(A) Central Govt . 

(B) SEBI 

(C) Court 

(D) All of these

23.Preliminary expenses are transferred by the vendor company at the time of absorption to  

(A) Realization account 

(B) Equity shareholders account

(C) Purchasing company’s account  

(D) Revaluation account

24.Policy maturing only on the death of the insured is termed as 

(A) Endowment Policy 

 B) Whole life policy 

(C) With profit policy  

(D) None of these

25. Reversionary bonus is the bonus payable by the insurance company 

(A) on maturity of the policy 

(B) On making huge profits 

(C) In the middle of a year 

(D) None of these 

26 . Rebate on bills discounted for a banking company is 

( A ) an expense 

( B ) an income 

( C ) a liability 

( D ) an asset  

27.Provision for doubtful debts in case of standard asset is to be made at 

( A ) 10 % " 

( B ) 5 % 

( C ) 4 % 

( D ) 0.4 % 

28 .A reserve created by a banking company as per Section 17 of the Banking Regulation
Act , 1949 

(A) General Reserve 

(B) Statutory Reserve 

(C) Investment Reserve 

(D) Capital Reserve 

29 .As per IRDA regulations . an Insurance company is required to prepare 

(A) Revenue Account - 

(B) Profit and Loss Account 

(C) Balance Sheet - 

(D) All of the above - 

 30 .On replacement of an asset , any amount realised on account of sale of old
materials is credited to 

(A) Replacement Account | 

(B) Asset Account 

(C) Revenue Account - 

(D) Profit and Loss Account - 

31 . An Irrecoverable cost which is caused by complete abandonment of a plant 

(A) Replacement cost 

(B) Imputed cost 

(C) Stune cost 

(D) | Marginal cost - 

32 . Per unit fixed cost  

(A) Increases with increase in output 

(B) Decreases with Increase in Output 

(C) Remains constant with increase in output 

(D) None of these

33 .which method of costing is used in a refinery ? | 

(A) Standard costing  

(B) Budgetary coasting

(C) Process costing 

(D) Budgetary costing Batch costing 

34 . Quantity of material to be ordered at one time is known as | 

(A) Reorder quantity 

(B) Economic order quantity 

(C) Optimum quantity

(D) None of these

35 . FIFO method of valuing material issues Is Sultable in times of 

( A ) Falling prices  

( B ) Rising prices 

( C ) Constant prices 

( D ) Fluctuating prices 

36 . which method of valuing material issue is suitable for materials purchased for a
particular work or job ? 

(A) Inflated price method 

(B) Market price method 

(C) Specific price method  

(D) Average cost method

37. Wages sheet Is prepared by the '

(A) Personnel Department 

(C) Cost Accounting Department 

(B) Payroll Department 

(D) Marketing Department

38 . Labour turnover is calculated by 

(A) Number of Additions / Average number of workers  

(B) Number of workers left / Average number of workers 

(C) Number of workers replaced by / Average number of workers 

(D) None of these 

39.Which of the following methods of wage payment is most suitable where the
speed of - production is beyond the control of worker ? 

(A) Time rate system 

(B) Halsey premium system 

(C) Time rate system 

(D) None of these

40.Under Merrick ' s multiple piece rate system , 110 % of ordinary piece rate is
given to workers whose level of performance is between 

(A) 50 % - 80 % of standard output 

(B) 83 % = 100 % of standard output 

(C) 80 % = 100 % of total output |  

(D) None of these

41 .What is the basis of opportionment of creche expenses | 

(A) No . of employees 

(B) No . of children in the creche 

(C) No . of female ertiployees 

(D) No . of hours spent 

42 .Expenses which are not actually incurred , but is included for taking managerial
clecisions are called 

(A) Normal expenses - 

(B) Fixed expenses - 

(C) Abnormal expenses 

(D) National expenses 

43.The costing method In which each job is treated as a cost unit to which all
costs are assigned is  

(A) Contract costing 

(B) Job costing 

(C) Batch costing 

(D) Process costing

44 .Where actual loss in a process is less than the anticipated loss , the difference
between - the two is considered to be 

(A) Normal gain  

(B) Normal loss 

(C) Abnormal gain 

(D) Abnormal loss 

45 .The most important criterion for distinguishing between scrap , byproduct
and joint products is  

(A) Quality of the product 

(B) Relative sales value 

(C) Acceptability of the product 

(D) None of these  

46 .To obtain break - even point in rupee sales value , total fixed cost is divided by 

(A) Variable cost per unit 

(B) Contribution margin per unit 

(C) Fixed cost per unit  

(D) Profit / Volume ratio 

47 .The break - ever point is the point at which 

(A) There is no profit no loss 

(B) Contribution imagiri is equal to total fixed cost 

(C) Total revenue is equal to total fixed cost 

(D) All of the above 

48 Margin of safety is referred to as 

( A ) Excess of actual sales over fixed expenses 

( B ) Excess of actual sales over variable expenses 

( C ) Excess of actual sales over break - even analysis 

( D ) Excess of budgeted sales over fixed cost

49. Make or Buy Decision Rinade by Comparing Purchase Price Outside 

(A) Flved Cost 

(B) Variable Cost Average Cost 

(C) Average Cost

(D) None of the above 

50. Activity ratio can be found using the formula 

(A)(Standard hours of actual production / Actual hours worked) x 100 

(B)(Actual hours worked / budgeted hours) x 100

(C)(Standard hours of actual production / Actual hours worked) x 100 

(D) None of these 

51.  An unfavorable material price variance occurs because of 

(A) price increase in raw materials 

(B) price dicreasein raw materials 

(C) less than expected normal wastage in manufacturing process 

(D) more than anticipated normal wastage in manufacturing process 

52.Who manages the concept of "Management by Objectives"?  

(A) Elton Mayo 

(B) Peter F, Dricker 

(C) C. Prahalad   

(D) Henri Fayol 

53. If a company has separate Production Managers, Marketing Manager and
Finance Manager, departmentation is followed by that company?  

(A) Products 

(B) Territory 

(C) Functions  

(D) None of the above 

54. The very specific guide to action is called 

(A) Strategy 

(C) Policy 

(B) Rule

(D) Procedure 

55. Which is the oldest form of organization?  

(A) Life Organization

(B) Line and Staff Organization 

(C) Functional 

 (D)None of these 

56. The first women authority in management is  

(A) Mary Parker Follett 

(B)Lillian Gilberth  

(C) T.  N. Whitehead   

(D) Marie Curie

57. Selecting one from several alternatives is called   

(A) Forecasting 

(B) Decision - making 

(C) Planning 

(D) Directing 

58. Esprit de corps means 

(A) Buyer beware

(B)Service is our motto  

(C) Union is strength

(D)Post - buying behavior

59. Responsibility is 

(A) Power to command 

(B) Delegation of power 

(C) Getting things done 

(D) Obligation to do duty 

60.who has entrepreneur skills but works within an organization or
venture - that seeks dynamism 

(A) Entrepreneur 

(B) Intrapreneur 

(C) Interpreneur

(D) None of the above 

61. Name the form of business in which the members are having limited liablllty.

 (A) Sole Proprietorship 

(B) Joint Stock Company

(C) Partnership 

(D) All of the above 

62. Motivation Available at the Time of Performance Work: 

(A) Negative Motivation 

(B) Intrinsic Motivation 

(C) Financial Motivation 

(D) Positive Motivation 

63. Delegation creates  

(A) New work  

(B) Existing work 

(C) Obligation

(D) New line of management 

64.A plan relating to a period of time expressed in numerical terms is a  

(A)Budget 

(B) Policy 

(C) Program 

(D) Strategy 

65. Administration dea  with 

(A) Implementation of Policy 

(B) Framing of Policy 

(C) Planning 

(D) Controlling

66.  The number of persons reporting directly to a top person is called 

(A) Communicating 

(B) Co - ordinating   

(C) Span of Control 

(D) Leadership 

67.  When was the Indian Partnership Act enacted?  

(A) 1932 

(B) 1939 

(C) 1942 

(D) 1956 

68. "In order to market a product, just make the product available in the market" - Which
concept of marketing is expressed through this statement?  

(A) Selling concept 

(B) Product concept 

(C) Production concept 

(D) Societal concept 

69.  The specific group of customers, who have a particular interest in your product 

(A) Target market 

(B)  Supporters

(C) Marketing mix

(D)  None of the above

70.  Dividing the Customers Based on a Product Based on their Attitude towards the
Product Its Use Rate and Status as Termed 

(A) Geographical segmentation 

(B) Behavioural segmentation 

(C) Psychographic segmentation 

(D) Demographic segmentation 

71.  A paid, non - personal communication designed to create an awareness of a
product or company 

(A) Branding, 

(B), Labeling 

(C) Advertising   

(D) All of These 

72, The Practice of Adding Tasks to Increase Both Accountability and Opportunity
in a Job: (A) Job Enrichment 

(B) Job Enlargement 

(C) Job Rotation 

(D) None of the above 

73. collecting feedback from all directions - from supervisors, reporting subordinates,
co - workers and even customers as termed as 

(A)Upward feedback 

(B) 360 degree feedback   

(C) On - the - job feedback   

(D) None of these 

74.  The return received on investing in the shares of a  company is 

(A) Interest 

(B) Dividend 

(C) Rent 

(D) None of these 

75.  The set of exclusive rights granted by a government to an investor or his
assignee for a limited period of time in exchange for a public disclosure of innovation 

(A) Trademark   

(B) Copyright 

(C) Patents 

(D) Public right 

76.  When was the Consumer Protection Act enacted?  

(A) 1968 

(B) 1986 

(C) 1978 

(D) 1987 

77.  What is the full form of BPO?  

(A) Business Protection Office 

(B) Business Problems and Opportunities 

(C) Big Profit Organization 

(D) Business Process Outsourcing 

78.  What does TOM stand for?  

(A) Total Quality Management 

(B) Total Quality Measurement 

(C) Total Quantity Management 

(D) Total Quantity Measurement 

79.  The Internet and other computer networks are known as the   

(A) e-purchase 

(B) e-advertising 

(C) e-commerce   

(D) e-chatting 

80. A market where all kinds of financial instruments are bought and sold:

(A) Credit market 

(B) Financial market

(C) Bond market 

(D) Derivative market

81.  Among which is the one and only major fresh water lake in Kerala 

(A) Sasthamcotta lake 

(B) Kumbla lake

(C) Ashtamudi lake 

(D) Vembanad lake 

82.  Which is the largest western flowing river in India?  

(A) Tapti 

(B) Sabarmati 

(C) Narmada 

(D) Mahi 

83.  What is the name of Sri Lanka's first satellite?  

(A) Colombo1 

(B) Raavana1 

(C) Vibhishna1

(D) Nirbhay 

84. Who among the following holds the record of longest serving member of the
Kerala Legislative Assembly?  

(A) K.  M. Mani 

(B) K.  R. Gouri Amma 

(C) Oommen Chandy 

(D) None of these 

85. Which country is named Fant to the Cyclone which hit the state of Odisha in
May 2019?  (A) India 

(B) Bangladesh 

(C) Pakistan 

(D) Myanmar 

86. Chattampi Swamikal was born at  

(A) Chempazhanthy 

(B) Panmana 

(C) Kannammoola 

(D) Alathur 

87.  Who among the following authored Mokshapradeepam?  

(A) Sri Narayana Guru 

(B) Vaikunta Swami 

(C) Swami Vagbhatananda 

(D) Brahmananda Sivayogi 

88. Where did 'Breast - Cloth Agitation' take place in Kerala?  

(A) North Malabar 

(B) South Malabar 

(C) North Travancore 

(D) South Travancore 

89, who led the Savarna Jatha in support of Vaikom Satyagraha 

(A) K;  Kelappan 

(B) A.  K. Gopalan 

(C) Mannathu Padmanabhan 

(D) T.  K. Madhavan 

90. In which language Vakkom Abdul Khader Moulavi published the monthly Al Islam?  

(A) Arabic 

(B) Arabic-malayalam 

(C)Urdu 

(D) Persian 

91.  Would you mind ...………..  the movie with me?  

(A) watching 

(B) to watch 

(C) watched 

(D) of watching  

92.  Last week I made ………...My priority.  

(A) of studying 

(B) a study 

(C) studying  

(D) on studying 

93. No sooner………….  I closed my eyes as I fell asleep 

(A) had  

(B) when 

(C) as 

(D) did 

94. .................... One who makes charitable donations.  

(A) Pacifist  

(B) Paddler 

(C) Peeler 

(D) Philanthropist 

95.I  . . .  . . . .  . . hirn from Bengaluru a month back.    

(A) have me 

(B) met 

(C) had met 

(D) met 

96.  "Cow 'is to' buffalo' as'..............is to  ‘donkey', 

(A) Jenny 

(B) Bear 

(C) Bitch 

(D) Doe 

97. The English Idiom 'break a leg' means: 

(A) face an accident  

(B) become angry 

(C) good luck 

(D) to make a situation worse 

98. I prefer coffee………….tea. 

(A) than 

(B) with 

(C) more than 

(D) to 

99.which is NOT a compound word? 

(A) real estate 

(B) Superman 

(C) notebook 

(D) examination 

100. ”Necessity is the ………….. of invention”. 

(A) need  

(B) cause 

(C) mother  

(D) reason