KVS PGT Commerce Question Paper -2018
KVS – 2018 – Question Paper Bifurcation
Total No of Questions : 80
| Subjects | Part of Subjects | No. of Questions | Total Questions |
| Financial Accounting & Financial Statement Analysis |
Financial Accounting | 14 | 40 |
| Corporate Accounting | 14 | ||
| Cost Accounting | 4 | ||
| Advance Accounting | 8 | ||
| Business Studies & Management |
Business Studies | 20 | 40 |
| Business Management & Human Resource Management | 11 | ||
| Financial Management | 6 | ||
| Marketing Management | 3 | ||
| Total | 80 | ||
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KVS – 2018 – Question Paper Bifurcation
Total No of Questions : 80
Financial Accounting
- Voucher prepared for the transaction with multiple debits and multiple credits is known as :
1. Complex Voucher
2. Debit Voucher
3. Credit Voucher
4. Compound Voucher - Reshma has return goods worth Rs. 10,000 to Rajesh as she found them defective. Which document is to be prepared by Rajesh for the same
(1) Debit Note
(2) Credit Note
(3) Invoice
(4) Cash Memo of Rs. 10,000 - Which one is false?
1. Sub-fields of accounting are book-keeping, financial accounting and management accounting.
2. There exists a wide gulf between accounting and economics
3. Accounting means recording transactions and events, not their interpretation
4. Materiality principle is an exception to the full disclosure principle - Which one is true?
1. Accounting involves only the recording of business transactions
2. A transaction which increases the capital is called ‘Income’
3. The value of human resource is shown as an asset in the balance sheet
4. Accounting is a service function - Which one is true ?
1. Accounting is a social science.
2. Economic life of an enterprise is artificially split into periodic intervals in accordance with the Going Concern Assumption.
3. The assets are classified as current assets and fixed assets in accordance with Accounting Period Assumption.
4. Revenue is generally recognised at the point of sale in accordance with the matching principle. - Trade discount is allowed at the time of :
1. Sale of goods
2. Receiving the payment for sale of goods
3. Receiving the payment before due date
4. Making payment for purchase of goods - Which one of the following statements is not appropriate for ‘Provision’?
1. Creation of provision satisfies the principle of conservatism
2. Provision is a charge against profits
3. Provision is created for known liability
4. Provision is created for strengthening the financial position of the business. -
Rs. Opening stock 85,000 Purchases 3,07,000 Wages 48,000 Interest on loan 28,000 Closing stock 90,000 Cost of goods sold will be——————-
1. Rs. 4,00,000
2. Rs. 3,00,000
3. Rs. 3,20,000
4. Rs. 3,50,000 - A machine was purchased on April 1, 2017 for Rs. 10,00,000 and on October 1,2017, a new machine was added for Rs. 4,00,000. Calculate the balance of ‘Machine Account’ as on March 31, 2018, if depreciation is charged @ 20% p.a. on Diminishing Balance method.
1. Rs. 11,20,000
2. Rs. 13,20,000
3. Rs. 11,60,000
4. Rs. 12,00,000 - A machine is purchased for Rs. 3,00,000 and its salvage value, after its useful life of 9 years, will be Rs. 30,000. Repairing expenses of the machine a the end of 4th year will be Rs. 20,000. What will be the rate of depreciation per annum under straight line method?
1. 11.11%
2. 10 %
3. 9.37%
4. 10.34% - Anil endorse a bill for Rs. 10,000 in favour of Chinki. This bill was drawn on Bijender . On the due date, the bill was honoured by Bijender. On Due date, which account will be debited by Bijender in his books ?
(1) Bills Receivable Account
(2) Bills Payable Account
(3) Chinki’s Account
(4) Anil’s Account - Ankit draws a bill on Bhawana for Rs. 60,000. Ankit endorses it to Charu in settlement of Rs. 70,000 at a discount of 2% and the balance in case. If the bill is dishounoured on the due date, by what amount will Charu debit Ankit?
1. Rs. 61,400
2. Rs. 60,000
3. Rs. 70,000
4. Rs. 68,600. - Meena draws a bill on Parveen on August 39, 2018 for 1 month. The due date of the bill will be:
1. October 1, 2018
2. October 2, 2018
3. September 29, 2018
4. October 3, 2018 - ‘Income and Expenditure Account’ is prepared by ‘Not-for-Profit Organisation’ on:
1. Cash basis
2. Receipts basis
3. Expenditure basis
4. Accrual basis
Corporate Accounting
- The portion of the capital which can be called only at the time of winding up of the company is known as——-
1. Uncalled capital
2. Subscribed capital
3. Reserve capital
4. Nominal capital - Dividend is usually paid on :
1. Issued Capital
2. Paid-up Capital
3. Called-up Capital
4. Authorised Capital - Dinesh Software Limited forfeited 200 shares of Rs 100 each (Rs 60 called up) issued at par to Kareena on which she had paid Rs 20 per share. Out of these, 150 shares were re-issued to Rajni for Rs. 45 per share as Rs. 60 paid up. Amount to be transferred to Capital reserve will be :
1. Rs. 750
2. Rs. 2,250
3. Rs. 6,750
4. Rs. 3,000 - Garden Limited forfeited 450 shares of Rs 10 each, issued at a premium of Rs. 1 each, on which Rs. 8 (including premium) was called and Rs. 6 (including premium) was paid. 350 of these shares were re-issued for Rs. 7 each as Rs. 8 paid up. What amount shall be credited to Capital Reserve Account?
1. Rs. 1,300
2. Rs. 1,400
3. Rs. 1,500
4. Rs. 1,600 - Shree Limited purchased a machine for Rs. 40,00,000, Payable as 20% in cash and balance by the issue of 8 % Debentures of Rs. 400 each at a premium of 20 % . How many debentures are issued to vendor ?
(1) 6250
(2) 6500
(3) 6,750
(4) 7,000 - A company purchased assets of Rs. 10,00,000 and issued 10% debentures of Rs. 8,00,000 to the vendors as consideration. While recording the above transaction in Journal, the balance of Rs. 2,00,000 will be credited to ———
1. Goodwill A/c
2. Profit & loss A/c
3. General Reserve
4. Capital Reserve - Profit after tax for the year ending March 31, 2018 amounted to Rs. 5,40,000 which showed an increase of 50% over the profit after tax for the previous year. The profit after tax for the previous year amounted to :
1. Rs. 3,50,000
2. Rs. 3,40,000
3. Rs. 3,60,000
4. Rs. 3,30,000 - During the year 2017-18, the Net Profit of a company is Rs. 7,00,000 after incorporating the following:
Gain on sale of Non-current Investment Rs.1,00,000
Premium on Redemption of preference shares Rs.15,000
Depreciation of Furniture and Fixtures Rs.2,00,000
Patents written off Rs. 3,00,000
Loss on sale of Fixed Assets Rs. 4,00,000
The net inflow of cash operating activities will be :
1. Rs. 9,15,000
2. Rs. 15,15,000
3. Rs. 7,00,000
4. Rs. 5,95,000 - Which one is not the purpose (objective) of analysis of financial statements ?
(1) To assess the current profitability and operational efficiency of the firm
(2) To judge the ability of the firm to repay its debt
(3) To show financial position through balance sheet and profitability through profit & loss account
(4) To identify the reasons for change in the profitability / financial position of the firm - Analysis of comparative financial statements include :
1. Common Size Statements
2. Cash Flow Analysis
3. Trend Analysis
4. Horizontal Analysis - Which one is true?
1. Financial statements reflect current situation
2. Assets shown in the balance sheet reflect expired cost
3. Balance sheets disclose information relating to loss of markets
4. Financial statements do not contain qualitative information - Cash collected from Debtors would be deemed as————–
1. Source of funds
2. Application of funds
3. Increase of funds
4. No flow of funds - ‘Fund Flow Statement’ is a study of
1. Change in Profitability
2. Change in Investments
3. Change in Working Capital
4.Change in Cash Position - Which of the following is not a mode of liquidation of a company?
1. Compulsory winding –up by the court
2. Voluntary winding-up by the members
3. Winding-up under the supervision of Court
4. Winding-up by the Directors
Cost & Management Accounting
- Which one is correct ?
(1) Rent, lighting and supervision cost are common costs
(2) ‘Joint Costs’ cannot be apportioned only by adopting a basis of apportionment
(3) Cost ascertainment does not involve allocation and apportionment of the expenditure to the cost centres
(4) Production Cost does not include the cost of the primary packing of the product - Job costing is :
1. Highly repetitive
2. Applied when the material and labour cost can be identified by order number
3. Not applied in plants making specialised industrial equipment
4. Applied where at different sites large-scale contracts are carried out - Which one is not the purpose of Cost Accounting?
1. product decisions
2. ascertain the financial position of business
3. operational planning and control
4. making special decision about ‘make or buy’ - Which one is a function of cost accounting?
1. to provide information about the profit or loss of the business as a whole
2. to provide information about the unit costs and profits/losses of different product lines
3. to record the value of plant and machinery
4. to provide information about economic resources and obligations of a business
Advance Accounting
- Which of the following is not an element of computer system ?
(1) Internet
(2) Hardware
(3) Software
(4) People - Group of instructions that directs computer is known as :
1. Data
2. Storage
3. Memory
4. Program - There are some query types that are required for generating the accounting reports. Which of the following is not a query type?
1. Data Query
2. Simple Query
3. Parameter Query
4. Summary Query - Which of the following is not a method of creating query in Access ?
1. Wizard Method
2. Text Method
3. Design Method
4. SQL Method - Which of the following is a not a limitation of computer system?
1. Lack of decision making
2. Lack of speed
3. Lack of commonsense
4. Zero IQ - Which of the following medium is universal, potable and inexpensive, but has its own limitations in terms of storage capacity and speed?
1. Optical Disk
2. Hard Disk
3. Floppy Disk
4. RAM - When computing the purchasing power gain or loss on net monetary items, which of the following accounts is classified as non-monetary?
(1) Allowance for uncollectible accounts
(2) Accumulated depreciation of equipment
(3) Advances to unconsolidated subsidiaries
(4) Unamortized premium on bonds payable - During a period of inflation, a liability account which has a constant balance, will show:
1. A purchasing power loss, if the item is a non-monetary liability
2. A purchasing power gain, if the item is a monetary liabilitiy
3. A purchasing power loss, if the item is a monetary liability
4. A purchasing power gain, if the item is a non-monetary liability
Business Studies
- The industry which combines various ingredients into a new product is known as
(1) Analytical industry
(2) Synthetic industry
(3) Processing industry
(4) Assembling industry - Cattle breeding farms, poultry farms and fish hatchery come under which type of industries?
1. Extraction industries
2. Secondary industries
3. Genetic industries
4. Processing industries - Which one is not a role of public sector ?
1. Development of infrastructure
2. Development of profit earning capabilities
3. Checking over-concentration of economic power
4. Expanding exports of the country - Which of the following quality certification is used for electrical goods?
1. FPO
2. AGMARK
3. ISI
4. HALLMARK - Which one is a human cause for business risks?
1. Political disturbances like fluctuation in exchange rate
2. Uncertainty relating to collection of dues from customers
3. Stoppage of work due to power failure
4. Heavy rains - Which one of the following is not correct?
1. Partnership is the relation between persons who have agreed to share the profits of the business carried on by any one of them
2. The partners bear the risks involved in running a business as a team.
3. A partnership firm is not legally required to publish its accounts.
4. According to section 464 of the companies Act, 2013, maximum number of partners in a partnership firm can be 100. - Which of the following is not a benefit of e-Business?
1. Customer Satisfaction
2. Convenience
3. Personal touch
4. Global reach - Which one of the following statements is true?
1. There is no separate law that governs sole proprietorship.
2. The owner of a sole proprietorship has limited liability.
3. Joint Hindu Family Business is controlled by all adult members of the family.
4. The liability of all members of Joint Hindu Family Business is unlimited. - Which one is not a feature of global enterprises?
1. Huge capital resources
2. Advanced technology
3. Product innovation
4. Responsibility for creating regional balance - Which of the following is not kind of ‘Social Responsibility of Business’
1. Professional Responsibility
2. Discretionary Responsibility
3. Ethical Responsibility
4. Economic Responsibility - Which of the following principle is applicable in the contract of life insurance?
1. Insurable Interest
2. Subrogation
3. Indemnity
4. Contribution - Which one is a strategic HR initiative for managing shortages?
1. Reduce outsourced work
2. Employee training
3. Switch to variable pay plan
4. Subcontract work to another company - The charter of a company is its———–
1. Statement in lieu of prospectus
2. Memorandum of Association
3. Articles of Association
4. Prospectus - The Government of India implemented the ‘Goods and Services Tax’ in the country from:
1. January 1, 2017
2. April 1, 2017
3. July 1, 2017
4. November 9, 2016 - The ‘Reserve Bank of India’ was established in :
1. 1934
2. 1935
3. 1936
4. 1947 - Which one of the following statements is true?
1. There is no separate law that governs sole proprietorship.
2. The owner of a sole proprietorship has limited liability.
3. Joint Hindu Family Business is controlled by all adult members of the family.
4. The liability of all members of Joint Hindu Family Business is unlimited. - ‘As the firms that outsource seek to lower their costs, they try to get maximum benefit from the low-cost manpower of the host countries.’ Which concern of outsourcing does this statement signify?
1. Confidentiality
2. Sweat-shopping
3. Resentment in the home countries
4. Ethical concerns - An initiative launched by the Government of India on September 25, 2014 with the major objectives of ‘Job Creation’ and ‘Skill Enhancement’ in 25 sectors of the economy. What is the name of that initiative?
1. Ujjwala Yojana
2. One Nation-One Tax
3. Make in India
4. Skill India - The actual name of World Bank is:
1. International bank
2. International bank for regulation and development
3. International bank for development
4. International bank for reconstruction and development - An aggrieved consumer can lodge a complaint to ‘State Consumer Commission’, if the value of goods or services in question, alongwith compensation :
1. is more than Rs 1 crore
2. is more than Rs 20 lakhs but does not exceed Rs. 2 crore
3. is less than Rs 20 lakhs
4. is more than Rs. 20 lakhs but does not exceed Rs 1 crore
Business Management & Human Resource Management
- Which of the following is not a characteristic of management?
1. Management is all pervasive
2. Management is multidimensional
3. Management is a tangible force
4. Management is a group activity. - Which one is a characteristic of charismatic leaders?
1. Abdicates responsibilities, avoides making decisions.
2. Intervenes only if standards are not met.
3. Engages in behaviours that are perceived as novel.
4. Watches and searches for deviations from rules and standards, takes correct action. - Which one is correct ?
(1) Personality never changes.
(2) Openness to experience is a personality dimension that characterises someone in terms of imagination, sensitivity and curiosity.
(3) Personality is the sum total of ways in which an individual reacts to others but does not interact with others.
(4) The fit between personality type and;occupational environment does not determine turnover. - Which one is false
1. Controlling is monitoring organisational performance.
2. Directing involves leading, influencing and motivating employees.
3. Organising does not consider allocating resources to carry out a specific plan.
4. Staffing is finding the right people for the right job. - Which one is a characteristic of transformational leaders?
1. Gives personal attention, treats each employee individually, coaches, advises.
2. Intervenes only if standards are not met.
3. Is willing to take on high personal risk, incur high costs.
4. Promises rewards for good performance, recognizes accomplishments. - Which one is true?
1. Management does not satisfy all the requirements of a profession
2. Management is considered a two-tier activity
3. Planning can prevent problems
4. Organising function examines the activities and resources required to formulate the plan - Downward communication is not used to :
1. Explain policies and procedures
2. Provide feedback about the progress toward goals
3. Point out problems that need attention
4. Assign goals - Which one is not a characteristic of ‘Coordination’?
1. It is a continuous process.
2. It is responsibility of all managers.
3. It is an essence of management.
4. It considers organisational goals and does not consider individual goals. - Which one is a true statement?
1. A group of firms in an industry following different strategies is called strategic group
2. Strategic planning is the process of developing and maintaining a strategic fit between the organisation’s goals and capabilities
3. Marketing strategies cannot become out dated for a long period
4. Strategic planning involves developing a strategy for short run survival - Which one of the following is a false statement?
1. Human Resource (HR) activities are not the sole responsibility of the HR specialists
2. HR functions are not confined to business establishments only
3. HRM (Human Resource Management) assumes that it is the people who make the difference
4. HRM does not necessitate allignment of HR Policies with the organisation’s Strategies - Which one is a strategic HR initiative for managing shortages?
1. Reduce outsourced work
2. Employee training
3. Switch to variable pay plan
4. Subcontract work to another company
Marketing Management
- Which one is correct, in modern marketing sense?
1. ‘Market’ refers to the place where buyers and sellers gather to enter into transactions
2. ‘Market’ refers to a set of actual and potential buyers of a product or service.
3. Marketing is same as ‘shopping’.
4. Marketing is only a post-production activity. - Which one is true?
1. Advertising strategy has the element of creating advertising messages.
2. Advertising strategy is not concerned with selecting advertising media.
3. Marketing mix does not consider ‘price’
4. Market means the place where goods and services are sold and rendered. - Which one of the following relates to trait theories of leadership?
1. Specific behaviours differentiate leaders from non-leaders
2. Employee-oriented leader takes a personal interest in employees’ needs.
3. The theory provides a set of rules to determine the form and amount of decision making in different situations
4. Theory that considers personal qualities and characteristics
Financial Managements
- Capital structure of a company related with :
1. Shareholders’ Funds
2. Long term Debts, Preference Share Capital and Equity Capital
3. Debentures and Loans
4. Total Assets less liabilities - Which of the following is not a function of Financial Market?
1. Facilitating Housing Loan
2. Facilitating Price Discovery
3. Providing Liquidity to Financial Assets
4. Reducing the cost of Transactions - A decision to issue new debentures is:
1. Capital budgeting decision
2. Operating decision
3. Financing decision
4. Investing decision - The first Stock Exchange in Asia was set-up in 1875 at :
1. Tokyo
2. Shanghai
3. Beijing
4. Mumbai - Which one is correct ?
1. Any amount of funds can be generated through trade credit.
2. Factoring does not create any charge on the assets of the firm.
3. Rate of interest offered on public deposits are usually lower than that offered on bank deposits.
4. Convertible debentures can be converted before the expiry of a specified period. - ‘It is a market where low risk, unsecured and short-term debt instruments, that are highly liquid, are issued and actively traded everyday.’ This market is known as:
1. Primary Market
2. Secondary Market
3. Money Market
4. Capital Market