KVS PGT Commerce Question Paper -2016
KVS PGT Commerce Question Paper -2016 : Download Link
KVS 2016 – Question Paper Bifurcation
Total No. of Questions 100
| Subjects | Part of Subjects | No of Questions | Total Questions |
| Financial Accounting & Financial Statement Analysis |
Financial Accounting | 11 | 41 |
| Corporate Accounting | 16 | ||
| Cost Accounting | 11 | ||
| Advance Accounting | 3 | ||
| Business Studies & Management |
Business Studies | 15 | 59 |
| Business Management &Human Resource Management | 14 | ||
| Financial Management | 10 | ||
| Marketing Management | 20 | ||
| Total | 100 | ||
KVS 2016 – Question Paper Bifurcation
Total No. of Questions 100
Financial Accounting
- The ending balance of owner’s equity is Rs. 1,02,000. During the year the owner contributed Rs. 15,000 and withdrew Rs. 6,000. If the firm had a net income of Rs. 13,000 for the year, what was the beginning owner’s, what was the beginning owner’s equity?
(1) Rs. 80,000
(2) Rs. 93,000
(3) Rs 96,000
(4) Rs. 89,000 - The practice of appending notes regarding contingent liabilities in accounting statements is in pursuant to :
(1) Money measurement concept
(2) Convention of disclosure
(3) Convention of conservatism
(4) Convention of consistency - Accounting Period Postulate:
(1) Suggest the companies to prepare financial statements on the basis of a systematic time interval, even though the operating cycle (s) of the entity may be incomplete
(2) Refers to the fact that adjusting entries must be made before financial statements are prepared periodically
(3) Suggest companies to prepare financial statements on a periodic basis – when all operating cycles are complete
(4) Refers to the limited life of a joint venture - Which one of the following errors is disclosed by Trial Balance?
(1) Omission of the recording of a transaction
(2) Partial omission of an entry
(3) Compensating error
(4) Error of principle - A machinery was purchased and installed on 1st April, 2015 by X Ltd. Costing Rs. 5,00,000 with projected useful life of 10 years and estimated salvage value of Rs. 50,000. If the company charges depreciation @ 20% by diminishing balance method, amount of depreciation to be charged in 2nd year, i.e., on 31st March 2017 shall be:
(1) Rs. 72,000
(2) Rs. 90,000
(3) Rs. 80,000
(4) Rs. 1,00,000 - A transport company purchased a delivery truck for Rs. 60,00,000. The company estimates that the truck will be driven 1,00,000 km over it’s 10 years useful life. The estimated salvage value is Rs. 12,00,000. The truck was driven 15,000 km in 2015. Which method results in the highest depreciation expenditure for 2015?
1. Written down value method
2. Double decline balance
3. Straight line method
4. Sum of the years digits - Which one is false?
(1) Depreciation is an amortised expenditure
(2) Reducing Balance Method of Depreciation is followed to have a uniform charge for depreciation and Repairs and Maintenance together
(3) Straight Line Method of Depreciation is followed to have a uniform charge for depreciation and Repairs and Maintenance together
(4) Providing depreciation in the accounts reduces the amount of profits available for dividend. - X and Y are partners sharing profits and losses in the ration of 3:1. They admit Z as a partner who pays Rs. 4,000 as his share of goodwill. The new profit sharing will be 2:1:1. The amount of goodwill will be credited to :
(1) X and Y as Rs. 3,000 and Rs. 1,000 respectively
(2) X only
(3) X and Y as Rs. 1,000 and Rs 3,000 respectively
(4) Y only - Which one is true?
(1) When goodwill does not appear in the books, goodwill is raised by crediting continuing partners in the gaining ratio unless agreed otherwise
(2) In the event of retirement of a partner, if the Joint Life Policy already appears at its surrender value, no further adjustment is required.
(3) Joint Life Policy becomes due in the event of death of any of the partners or on the maturity of policy, whichever is later.
(4) When goodwill appears at an amount which is more than its agreed value, the difference will be credited to all partners’ capital accounts in the case of retirement of a partner. - Which one is true?
(1) In case Memorandum Revaluation account is opened, the assets and liabilities appear in the New Balance Sheet at their revised values
(2) The retiring partner may claim a share in the profits of the firm even after his retirement if his accounts are not settled
(3) All accumulated profits and reserves are to be transferred to the Profit and Loss Adjustment Account on admission of a new partner.
(4) A dormant partner has to give public notice of his retirement - Which of the following rights usually not available to a partner consequent to the dissolution of a firm ?
1. Right to restrain any partner or his representatives from the use of firm name or property
2. Right to return of premium on premature winding up
3. Right of equitable distribution of firm’s property
4. Right to be consulted
Corporate Accounting
- When a company issues shares at a premium, that share premium can be used full or in part for:
1. Writing-off Goodwill
2. Writing-off the Preliminary expenses
3. Purchase of fixed assets
4. Writing-off advertisement expenses - Buy back of securities cannot be made out by a company out of
(1) If free reserves
(2) the proceeds of other specified securities
(3) the securities premium account
(4) an earlier issue of the same kind of shares or same kind of other specified securities - When debentures are redeemed out of profits, an equal amount is to be transferred to :
(1) Profit and Loss appropriation account
(2) Debenture redemption reserve
(3) General reserve
(4) Capital reserve - The interest coverage ratio or the times interest earned is used to test the:
(1) Firm’s liquidity position
(2) Firm’s debt servicing capacity
(3) Firm’s debt repaying capacity
(4) All of the above - In Liquidator’s Final Statement of Account, what is the correct sequence of the following disbursements?
(a) Legal expenses
(b) Liquidators’ remuneration
(c) Preferential and overriding creditors’ dues
(d) Dues of debenture holders secured with floating charge
(e) Dues of debenture holders secured with fixed charge
(1) (a), (b), (c), (d), (e)
(2) (a), (b), (d), (e), (c)
(3) (b), (a), (c), (e), (d)
(4) (a), (b), (e), (d), (c) - Calls in advance is a:
(1) Current liability
(2) Long term liability
(3) Contingent liability
(4) None of the above - Under which heading the item. ‘Bills Discounted but not yet matured’ will be shown in the Balance Sheet of a Company?
(1) Current Liability
(2) Contingent Liability
(3) Current Assets
(4) Unamortized Expenditure - Which one is true?
(1) Purchase of stock in trade is an application of fund
(2) Amortisation of preliminary expenses is a use of funds
(3) Funds flow analysis shows the position of business as on the closing date of business period
(4) Credit sales increases the working capital - What is liquid ratio when Current Assets = Rs. 20,000, Stock = Rs. 3,000, Prepaid Expenses = Rs. 1,000 and working capital = Rs. 16,800?
(1) 5
(2) 2
(3) 4
(4) 3 - The current ratio is 4.5:1 and liquid ratio is 3:1. Stock is Rs. 3,00,000. What are the current liabilities?
(1) Rs. 2,50,000
(2) Rs. 2,75,000
(3) Rs. 2,00,000
(4) Rs. 1,75,000 - Assertion (A) : Cast flow statement is based on cash basis of accounting, while Funds flow statement is based on accrual basis of accounting
Reason (R) : Cash flow statement is based on a narrower concept of funds but Funds flow statement is based on wider concept of funds.
Select the correct code:
1. (A) is correct but (R) is wrong
2. Both (A) and (R) are correct but (R) is not the correct explanation of (A)
3. (A) is wrong but (R) is correct
4. Both (A) and (R) are correct and (R) is the correct explanation of (A) - Opening stock was Rs. 29,000; Closing stock was Rs. 31,000. Sales amounted to Rs. 3,00,000. Gross profit was 25% on cost. What was the Inventory Turnover Ratio?
1. 6 times
2. 8 times
3. 7 times
4. 5 times - The Earnings per Share (EPS) is calculated by using the following formula:
1. Dividend/No. of ordinary shares outstanding
2. PBT/No. of shares outstanding
3. DPS/Market value per share
4. PAT/No of shares outstanding - Which one is true?
1. Purchase of stock in trade is an application of fund
2. Payment of dividends is a use of funds
3. Funds flow refers to change in long term funds
4. Decrease in working capital is a use of funds - Buying goods for cash would:
1. increase the gross profit percentage
2. increase the current ratio
3. have no effect on current ratio
4. decrease the gross profit percentage - Given: Cash in hand = Rs. 50,000, Cash at bank = Rs. 50,000, Marketable securities = Rs. 1,50,000; Debtors = Rs. 2,50,000. Other current assets = Rs. 2,50,000, Current Liabilities = Rs. 2,50,000. Absolute liquid ratio will be:
1. 2:1
2. 2:5
3. 1:1
4. 3:1
Cost & Management Accounting
- Prime cost plus variable overhead is known as
(1) Production cost
(2) Total cost
(3) Marginal cost
(4) Cost of sales - Which one is true?
(1) The valuation of stock is at a higher price in absorption costing as compared to marginal costing
(2) Increase in selling, price will have no effect on margin of safety
(3) Semi-variable costs form a part of product cost in marginal costing
(4) Profit-volume ratio indicates the relationship between profit and sales - Which one is false?
(1) The total of capacity variance and efficiency variance is equal to volume variance
(2) The selling departments is responsible for factory overhead volume variance
(3) The purchase department should be held responsible for material price variance
(4) A cost variance is said to be favourable if the standard cost is more than the actual cost - Job costing is used in:
(1) Chemical manufacturing
(2) Brick-making
(3) Ship-building
(4) Cement production - Conversion cost is equal to total of :
(1) material cost and direct wages
(2) direct wages and factory overhead
(3) material cost and indirect wages
(4) material cost and factory overhead - Which one is true?
(1) The point at which the slopes, ordering costs and carrying costs curves are equal but of opposite direction, determines the EOQ.
(2) Generally a large number of items of inventory claim a large proportion of total value of all inventories
(3) Inventory in relation to total working capital has similar proportions over a business cycle
(4) Lager the safety stocks a firm keeps, greater is its scope for speculation on inventory - Which one is true?
(1) Incremental cost is a type of differential cost
(2) Opportunity cost helps in ascertainment of cost
(3) Variable cost per unit fluctuates with the volume of production
(4) Conversion cost is the sum total of direct material cost and direct wages cost - Which one is true?
1. Standards are used for planning and coordination purposes
2. Labour time standards are generally set on the basis of motion and time studies
3. Overhead standards are set like material and labour standards
4. Standard fixed overhead rate is based on budgeted output - A period of rapid market acceptance and substantial profit improvement represents which stage of “Product Life Cycle”?
1. Introduction
2. Maturity
3. Growth
4. Decline - When margin of safety is 20% and P/V ration is 60%, the profit will be:
1. 30%
2. 22%
3. 33%
4. 12% - Which one is true?
1. All future costs are not relevant costs
2. Difference in costs between alternatives is termed as relevant cost
3. Past costs are significant for decision making
4. Contribution margin is also known as Net Income
Advance Accounting
- Which one is false?
(1) Database consolidates data records formerly stored in many separate date files
(2) Database can be used by any person having the right to use it
(3) Database is not a common data source to various users
(4) Database is controlled by a separate authority established for the purpose - In relation to ‘Accounting System’ using DBMS——————- are the foundations of any application and allow the designer to create a set of programming intructions.
(1) ACCESS
(2) Modules
(3) Macros
(4) Wizards - According to ———of human resource accounting an individual’s a value to an organization is determined by the services he is expected to render to the organization during the period he is likely to remain with the organization in various positions or service states.
1. Lev and Schwartz Model
2. Jaggi and Lau Model
3. Flamholtz Model
4. Morse Net Benefit Model
Business Management & Human Resource Management
- Match items in List- I with those in List – II and choose the correct code:
List – I List- II
(a) Top management (i) Technical skill
(b) Middle management (ii) Human skill
(c) Operational management (iii) Conceptual skill
Code
(a) (b) (c)
(1) (i) (ii) (iii)
(2) (i) (iii) (ii)
(3) (ii) (iii) (i)
(4) (iii) (ii) (i) - Which of the following is the drawback of scientific management?
1. Increase of individual worker’s initiative
2. Exploitation of workers
3. Slowering-up of workers
4. Strengthening of Trade unions - According to Mary Parker Follet which one of the following principles is important for achieving co-ordination?
1. Continuity
2. Direct Contact
3. Reciprocity
4. All of the above - According to theory “Y”, labeled by Douglas McGregor, which assumption is not correct?
(1) Employees can view work as being as natural as rest or play
(2) The average person can learn to accept, even seen, responsibility
(3) Employees will seek formal direction whenever possible
(4) The ability to make innovative decisions is widely dispersed throughout the population - Which of the following is a component in the function of direction?
(1) Supervising the subordinates
(2) Performance appraisal
(3) Training and development
(4) Problem solving - With reference to Piece wage system, which of the following is correct ?
(1) It makes the workers feel insecure.
(2) Piece rates strengthen labour unions
(3) Less stress on the quantity of production
(4) Affect the employer-employee relations positively. - According to which model/theory of leadership a leader is supposed to match his leadership style with the maturity level of subordinates which moves in stages and has a cycle?
(1) Fiedler’s Contingency Theory
(2) House’s Path Goal Theory
(3) Hersey-Blanchard Situational Model
(4) Vroom- Vetton and Jago’s Contingency Model - According to F.W.Taylor, “Prosperity for the employer cannot exist for a long time unless it is accompanied by prosperity for the employees.” Which of the ‘Scientific Management’ principles supports this view?
(1) Science, not rule of thumb
(2) Cooperation , not individualism
(3) Harmony, not discord
(4) Development of each and every person to his/her greatest efficiency and prosperity - Which of the following statements is correct?
(1) Henri Fayol’s principles and techniques were suggested with bottom upward approach whereas FW Taylor’s principles are based on top downward approach
(2) Fayol’s techniques are more specific whereas Taylor’s principles are more general in nature and are flexible
(3) Taylor’s principles have wider relevance in all functional areas whereas Fayol’s principles and techniques are relevant mainly with respect to production activities
(4) Taylor’s principles and techniques are focused on workers’ efficiency while Fayol’s principles are focused on managerial efficiency - Which one is true?
(1) Groups can cause either desirable or undesirable consequences within the organization
(2) A formal group can be only a command group
(3) Groups do not exist in all kinds of organizations
(4) A formal group can be only a task group - Identify the odd one out :
(1) span of authority
(2) span of direction
(3) span of control
(4) span of supervision - The obligation of a subordinate to properly perform the assigned duty is known as:
1. Delegation of authority
2. Accountability
3. Authority
4. Responsibility - Which of the following refers to the process wherein various tasks and activities are assigned to different departments and people in the organization?
(1) Job description
(2) Differentiation
(3) Integration
(4) Job rotation - According to ‘Ghee and Thayer’ model for identifying training needs, which of the following is required?
1. organization analysis
2. task analysis
3. man analysis
4. all of the above
Financial Management
- According to which approach, the overall capitalization rate and the cost of debt remain constant for all degrees of financial leverage?
(1) Traditional Approach
(2) M-M Approach
(3) Net Income Approach
(4) Net Operating Income Approach - The SEBI was constituted as a non-statutory body in the year:
1. 200
2. 1988
3. 1987
4. 1998 - A mutual fund is to be set up in the form of a:
1. Trust
2. Joint Stock Company
3. Partnership Firm
4. None of the above - Identify the odd one out
1. Float
2. Petty cash book
3. Imprest
4. Cash book - Which one does not affect the choice of capital structure?
(1) Cash flow position
(2) Debt-Equity Ratio
(3) Debt Service Coverage Ratio
(4) Cost of Equity - In modern times, a finance manager is not concerned with :
(1) the total amount of capital employed
(2) the measurement of results of each allocation of funds
(3) the allocation of funds to different projects
(4) accurate record keeping - Which one is false
(1) Required return is a basic variable in the evaluation of a credit policy
(2) seasonal dating results in reduction in credit period during off-season
(3) seasonal dating aims at avoiding inventory carrying costs
(4) if the credit terms are changed from ‘2/10, net 30’ to ‘3/10, the average investments in accounts receivable are likely to decrease - Which of the following is an unlevered firm?
(1) A firm that uses debt only to finance it’s assets
(2) A firm that uses both debt and equity to finance it’s assets
(3) A firm that uses no debt and finances it’s assets entirely by equity
(4) None of the above - Which one is a false statement?
(1) Net working capital of a firm is that portion of its current assets which is financed by long term funds
(2) An increase in average debt-collection period lowers the requirements of working capital
(3) Longer the duration of operating cycle, larger is the amount of working capital requirements
(4) Working capital requirements increase during the period of increasing inflation - Which one is true?
1. Receivables represent a stage in the operating cycle of a manufacturing firm which is located in between ‘sales’ and ‘cash’ stages
2. Seasonal dating requires a firm’s customers to pay in the early part of the season
3. Receivables do not help growth of sales, other things remaining the same.
4. One of the objectives of financial management is to increase the size of the investments in receivables
Marketing Management
- Which one is false statement
(1) Dissonance – reducing buying behaviour occurs when consumers are highly involved with an expensive or risky purchase and see significant difference among brands.
(2) The buying process starts with need recognition
(3) Habitual buying behaviour occurs under conditions of low consumer involvement
(4) Consumers undertake variety seeking buying behaviour in situations characterized by low consumer involvement but significant perceived brand differences - Which one is true?
(1) National culture refers to primary values and practices that characterize a particular country
(2) Affective component of an attitude is the opinion or belief segment of an attitude
(3) Attitudes are favourable evaluative statements concerning objects, people or events
(4) Cognitive component of an attitude is the emotional or feeling segment of an attitude. - Which one is false?
(1) A stability strategy may lead to offensive move by obtaining a patent to reduce competition
(2) One of the reasons for pursuing stability strategy is the thinking that too much expansion can lead to inefficiencies
(3) The stability strategy can be designed to increase profits.
(4) Expansion strategy which fails to make resources more productive is “excess fat” - Which of the following performance evaluation is very much useful for discovering the potential of employees who can be useful of critical situation?
(1) Paired comparison
(2) Critical incident method
(3) Forced choice method
(4) Graphic rating scale - Which one is false?
(1) Persons who believe they control their destinies, have been labelled ‘internals’
(2) Generally, who rate high in externality are less satisfied with their jobs
(3) Persons who see their lives as being controlled by outside, forces have been called ‘externals’
(4) Generally, individuals who rate high in externality have lower absenteeism rates - Which of the following authors tried to integrate the modern concept of “Consumer Oriented” market with the traditional view of marketing?
(1) F.E.Clark
(2) Harry Hansen
(3) Philip Kotlar
(4) Copeland - Horizontal, Vertical and Random cliques are parts of :
(1) Core groups
(2) Formal groups
(3) Informal groups
(4) Closed groups - The emotional or feeling segment of an attitude is known as:
(1) Affective component
(2) Cognitive component
(3) Behavioural component
(4) Cognitive dissonance - Which of the following is a Cause of Business Risk ?
(1) Natural Calamities
(2) Change in Technology
(3) Negligence of employees
(4) All of the above - Which one of the following is false?
(1) Communication must include both the transference and the understanding of meaning
(2) Encoding is retranslating a sender’s communication message.
(3) Communication serves four major functions within a group or organization: control, motivation, emotional expression, and information
(4) The channel is the medium through which the message travels - —————-communication attempts to increase the organisational efficiency by speeding up information and cutting across departmental barriers.
(1) Non-verbal
(2) Lateral
(3) Horizontal
(4) Diagonal - Which one is a true statement?
(1) Market stands for the place where buyers and sellers gather to exchange their goods
(2) Demarketing aims at destroying demand
(3) A market is the set of all actual and potential buyers of a product or service
(4) Most firms practice the selling concept when they have used full capacity - Which one is true?
(1) Efficiency is the ratio of effective output to the input required to achieve it
(2) Work-study techniques do not include fatigue study
(3) Work-study techniques do not include motion study
(4) Taylor advocated mix of planning and execution functions - The business information systems are:
(1) Restricted to production and sales systems
(2) Not restricted to any particular functional area
(3) Restricted to finance function
(4) None of the above - Which one is true?
1. Structure is the organization chart to show the division of task
2. Organisation structure by product divisions reduces coordination between functions for rapid response
3. In functional structure, employee identification with specialized groups makes change difficult
4. A change in strategy requires the culture of the enterprise to remain the same - A candidate is likely to receive a more favourable evaluation if preceded by mediocre applicants and a less favourable evaluation if preceded by strong applicants. This phenomenon is known as:
1. Selective perception
2. Stereotyping
3. Halo effect
4. Contrast effect - An aggressive financing strategy is one where:
1. a portion of short-term funds is raised from long-term sources.
2. long-term funds are raised from long-term sources only
3. a portion of long-term funds is raised from short-term funds is raised from short-term sources
4. financing decisions are spontaneous - Which one is true?
1. One of the factors affecting industrial and/or institutional buyers is promotional and merchandising support
2. Demographic factors are referred to as ‘secondary demand factors’.
3. The power of the supplier is greatest when the supplier can integrate forward<
4. Change in the age wise composition of population does not necessitate change in strategy - Which of the following is not involved in ‘Concentration’ in marketing function?
1. Dividing
2. Grading
3. Storing
4. Risk bearing - Expertise, competence, role modeling, ability to reward, caring and information sharing are the bases of:
1. Referent power
2. Coercive power
3. Expert power
4. Persuasive power