KERALA STATE FINANCIAL ENTERPRISES 2016 ASSISTANT MANAGER TEST 1. Marshalling is a term associated with arrangement of items in…………….. A. Trial Balance B. Balance sheet C. Profit & loss A/c D. None of these 2. Returns Inwards book is prepared with the help of a document called………. A. Cash Memo B. Credit note C. Debit note D. Bill of Materials. 3.Use of common unit of measurement and common format of reporting promotes………………. A. Comparability B. Understandability C. Relevance D. Reliability 4. 1. Communication 2. Summarizing 3. Recording 4. Classifying 5. Analysing. Which one of the following is the correct arrangement in the accounting function. A. 3 1 2 4 5 B. 3 4 2 5 1 C. 3 1 4 2 5 D. 5 3 1 4 2 5.”Paid son’s fees from the personal bank account of a businessman”
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KERALA STATE FINANCIAL ENTERPRISES 2016
ASSISTANT MANAGER TEST
1. Marshalling is a term associated with arrangement of items in……………..
A. Trial Balance B. Balance sheet C. Profit & loss A/c D. None of these
2. Returns Inwards book is prepared with the help of a document called……….
A. Cash Memo B. Credit note C. Debit note D. Bill of Materials.
3.Use of common unit of measurement and common format of reporting promotes……………….
A. Comparability B. Understandability C. Relevance D. Reliability
Which one of the following is the correct arrangement in the accounting function.A. 3 1 2 4 5 B. 3 4 2 5 1 C. 3 1 4 2 5 D. 5 3 1 4 2
5.”Paid son’s fees from the personal bank account of a businessman”
From business point of view , how this item is treated?A. Drawings B. Expenses C. Revenue D. None of these
6. A business has its own existence different from businessman. The accounting concept laid down for this principle is………………
A. Matching B. Materiality C. Dual Aspect D. Separate entity
7. Heavy expenditure on advertisement on advertisement incurred by a firm and expects its effect for a period of three years. What class of expenditure is it?
A. Capital expenditure B. Revenue Expenditure C. Deferred Revenue Expenditure
D. None of these
8. Which among the following is not a current Asset.
A. Stock B. Account receivable C. Motor Vehicle D. None of these
9. Monthly rent paid is an example of ……………….expense.
A. Variable B. Fixed C. Semi Variable D. None of these
10. Carriage incurred in connection with purchase of machinery is debited to…………a/c
A. Carriage A/c B. Cash A/c C. Machinery A/c D. Other Expenses A/c
11. Cheque paid in to bank but not credited to bank pass book effects……………………..at the time of preparing bank Reconciliation statement.
A. Decrease in bank balance B. Increase in bank balance
C. Decrease in cash book balance D. None of these.
12. …………………….. principle of accounting suggests for making provision for future losses.
A. Prudence B. Conservatism C. Matching D. Materiality
13. Rent paid Rs.1000 recorded as Rs.10000 and salary paid Rs. 10000 recorded as Rs.1000. It is an example of ……………
A. Error of ommission B. Error of commission C. Compensating Error D. Error of principle
14. The special journal used to record the purchase of machinery on credit for business purpose is…………….
A .Purchase book B. Purchase Journal C. Journal proper D. None of these.
15. The validity and reliability of a balance sheet lasts for…………………..
A. One Financial Year B. One month C. One day D,. One Calender Year.
16………………… principle of accounting is the basis for accounting Equation.
A. Money measurement concept B. Business Entity C. Dual Aspect principleD.None of these
17.Decrease in the value of wasting assets due to exhaustion is termed as…………
A. Flactuation B. Amortisation C. Depletion D. Depreciation.
18. According to diminish balance method the amount of depreciation…………….
Year after year.A. Declines B. Increases C. remain constant D. None of these.
19.Cash A/c is an Example of……………A/c
A. Nominal B. Real C. Personal D. None of these
20.Three extra days allowed for settlement of amount of a negotiable instruments is termed as ……………..A. Extra days B. Grace Days C. Account Holidays D. Days of Grace
21.A real account except a cash account always have a………………..balance.A, Credit B. Debit C. Debit or credit D. None of these.
22.Expense incurred in connection with starting a business organization is termed as…………..A. Formation Expenses B. Revenue expenses C. Capital expenditure
D.None of these23.An Item “ sales Tax collected” is find in Trial balance credit side. How it is
treated in accounting.A. Profit and Loss-Credit side C. Profit and Loss Debit sideB. Balance Sheet-Asset side D. Balance Sheet –Liability side.
24.The net effect of capital expenditure is……………………A. Decrease in Assets B. Increase in Liability C. Increase in Earning
CapacityC. None of these.
25. Novell Netware is a term associated with…………….A. Mailing system B. Channelising system C. Network system D.None of
these.26.Which one of the following equation is correct.
A. Assets+Liabilities=Capital C. Assets-Liabilities = Capital
B. Liabilities = Equity D. liabilities=Assets+Capital27. If the proprietor of a business withdrawn goods for private use, What will
be the journal entry.A. Purchases A/c Dr. C. Drawings account Dr.
To Drawings To PurchasesB. Drawings A/c Dr. D. Cash A/c Dr.
To Cash To drawings28.GAAP is associated with………….
A. Communication B. Accounting C. Management D. None of these
A fire occurred in the premises of a company resulted in loss of stock worth Rs.12000 . Insurance company agreed to pay a claim of Rs.7000. On the basis of these informations, answer questions 29-32.
29.Howmuch amount is credited to Trading A/c. A. 7000 B. 5000 C. 12000 D. None of these.
30. How much amount is debited to Profit and Loss A/cA. 7000 B. 12000 C. 5000 D. 19000
31.How much amount is shown in the Balance SheetA. 12000 B. 5000 C. 7000 d. 19000.
32.If the stock is not insured the amount debited to Profit & loss A/c will be……….A. 7000 B. 5000 C.12000 D.17000
Goods distributed by a business as free samples to motivate marketing worth Rs. 3000. On the basis of this information answer questions 33- 35.
33. How this item is treated in Trading A/c.A. Debited to trading A/c B. Credited to trading A/c.C. Deducted from purchasesD. Deducted from closing stock
34. How it is treated in Profit and Loss .A. added to general expenses B. Credited C. treated as advertisement d. none of these.35. How this item is treated in Balance Sheet A. liability B. asset C. No Effect D. None of these.
From the information given , Answer questions 36-40
Bad debts in Trial Balance – 5000 “ “ ,Adjustment- 3000Existing Provision - 1000Debtors in Trial Balance 17000New provision required – 10 %.Provision for discount on debtors required 2.5 %.
35.What will be the amount of new provisionA. 1700 B. 4700 C. 425 D.1400
36.How much amount is debited to Profit and loss as new provision.A. 1700 B. 425 C. 400 D. none of these
37.What will be the amount of total baddebts in Profit and Loss A/c.A. 8000 B. 2000 C. 3000 D. 8425
38.What will be the amount of Provision for discount on debtors.A. 315 B. 630 C. 975 D. None of these.
39. What will be the final amount of debtors in Balance sheet.A. 12285 B. 12000 C. 14000 d. 13000
40.Provisions for baddebts is charged on……………A. Total debtors B. final debtors C. Good debts C. None of these.
41. The method of depreciation suitable to loose tools is………A. Depletion B. straight line C. diminishing balance D. Revaluation.
42.According sum of years digits method depreciation amount …….every year.A. Increases B. Diminishes c. remains constant D. increase or decrease.
43. A wrong debit in Cash book ……… cash balance.
A. increases B. decreases c. does not affect D. none of these.
44. Entries appearing inn both sids of double column cash book is called…….
A. Opening entries b. Closing entries C. Contra Entries D. Adjusting entry
45. Asset purchased on credit for permanent use in the business is recorded in …….
A. Purchases book B. Cash book C. Journal Proper D. none of these.
46. A Liability A/c always have a ……………….balance.
A. debit B. Credit C.debit or credit D. None of these.
47. Sales day book is prepared to record………………..
A. cash sales B. Credit sales C. Sale of Assets D. none of these.
A business man withdrawn goods worth Rs. 2000 for the educational need of his daughter. On the basis of this information, answer the questions 48-50
48. How this item is treated in Trading A/c
A. Debited in Trading A/c b. Credited in Trading A/c C. Deducted from sales D. Deducted from Purchases
49. How this item is treated in Balance sheet.
A. asset B. Liability C. Added to capital D. deducted from capital
50. If his daughter pays the price of these goods, from money gifted by his uncle,
This item is treated by businessman as………….A. Sales B. Profit c. Drawings D. None of these.
51. Grapewine communication refers to…………..
A. Formal communication B. Informal communication C. Upward CommunicationD. Downward Communication,
52. Circular is an example of……….. Communication
A. Vertical B. Horizontal C. Diagonal D. Downward
53. Communication between officers of different status and departments is called………..communication.
A. Diagonal B. Horizontal C. Vertical D. Formal.
54. The term imprest money is connected with…………
A. Bank deposit B. Cash in hand C. Petty cash D. Money in reserve From the informations given below, answer questions 55-58. Sales- 80000, Gross profit margin -25% on cost Net profit ratio 15%
55. What will be the amount of Gross Profit.
A. 20000 B. 16000 C. 32000 D. None of these
56. What will be the amount of net profit
A. 12000 B.9600 C. 32000 D. none of these
57. What will be the amount of cost of sales
A.64000 B. 60000 C.48000 D. none of these
58. Gross profit margin shows the relation between Gross profit and…….
A. Capital B.Netprofit C. cost of Production D. Sales.
59. Annual depreciation = C-S/N, here S represents…………….
A. Sales Value B. Residual Value C. Stock Value D. None of these.
60. Deplection method of depreciation is applicable innthe case of…..Assets.
A. Fixed B. Intangible C. Wasting D. current
A main cashier provided Rs.1000 to the petty cashier for meeting pettycash expenses and required to make a detailed statement for expenses spent. The actual expenses incurred by petty cashier is 720. On the basis of this information answer questions 61-61. Which special journal is used to record the above matters? A. Simple column cash book B. Analytical petty cash book C. Two column cash book D, None of these.
62. The advance of Rs.1000 is termed as………… A. Rotation money B. Advance Money C. Imprest amount D. None of these.63. How much amount is reimbursed byMain Cashier, A, Rs.1000 B. Rs.280 C. Rs.720 D, None of the above.64. The drawee of a cheque is always…………. A. Depositor .Debtor C. CreditorD, Bank65. Goods with drawn by the businessman for domestic usefrom business is considered as………… A. Sales B. Purchases C. Expense D, Drawings66. Depreciation is treated as a business …………. A. Expense B. Loss C. Revenue D. None of these67. International Accounting Standard 1 is connected with…………. A. depreciation B. Errors and rectification C. Loss of stock by fire D. Financial statements.68.IAS for valuation of inventories is…………. A. IAS- 11 B. IAS -2 C. IAS 41 D. IAS- 769. Closing stock is valued at…………….. A. Cost Price B. Average Price C. Market Price D. Cost/Market price which ever is less.70. Damages claimed for low quality of purchased goods are recorded in ………..,,,book. A. Purchase s B. Sales C. Returns Outwards D. Return Inwards.
MANAGER TEST
1. The father of scientific management is………………………….A. Henry Fayol B. Lionell Robbins C. F.W. Taylor D. Alfred Marshall
2. EPS is connected with………………..A. Liquidity B. Capital gearing C. Solvency D. Profitability.
3. In preparing fund flow statement, Fund denotes……………….A. Marketable securities B. Cash C. Cash and Bank Balance D. Net
working capital4. Gang Plank is a term associated with ………………………
A. Employee Remuneration B. Employee Morale C. Training D. Communication.
5. Cash collected from Debtors is a source of cash inflow from…………………….A. Financing Activities B. Operating Activities C. Investing ActivitiesD.None of these
6. DPC chart is a technique connected with ………………..function. A. Planning B. Staffing C.OrganisingD.Controlling
7. ABC Analysis is concerned with…………..A. Labour control B. expense Control C. Inventory Control D. None
of these.8. Which among the following is a limitation of Accounting.
A. Going concern B.. Business Entity C. Dual aspect D. Money measurement.
9. When a Negotiable instrument is transferred to a creditor, such a process is called…………………A. Negotiation. B. Transfer C. Endorsement D. Noting
10.Comparison of a financial statements of an organization is called……………A. External Analysis. B. Vertical analysis C. Intra firm analysis D.
Horizontal Analysis.11.……….. ratio shows the proportion of debt and equity in the capital
structure of a company. A. Coverage ratios B. leverage Ratios C. Profitability ratios D. Turn over
ratios.12. Financial leverage is otherwise known as ………..
A. Capital structure B. Capital Gearing C. Trading on Equity D.Long term fund.
The following information about a company is given. Answer Questions 13-17.Current ratio 2.5:1, Acid Test ratio 1.5:1, Current Liabilities Rs.50000
13.How much is the current assets of the companyA. 100000 B. 150000 C. 80000 D. 125000
14. The amount of liquid assets=……………A. 100000 B. 75000 C. 50000 D. 125000
15. The amount of closing stock = …………A. 50000 B. 75000 c. 100000 D. 125000
16.How much is Quick assets.A.100000 B. 75000 C. 50000 D. 125000
17. The amount of net working capital =………….
A. 75000 B. 50000 C. 100000 D. 40000
18. Debtors Turn over ratio is presented in …………….
A. Percentage B. Ratio C. Times D. None of these.
19. Gross working capital refers to ………….
A. Total current Assets B. Current Assets- Current liabilities C. Total inventoryD. None of these.
20. A co. made provision for tax Rs. 120000. How this item is treated in financial statement, if tax is not paid.
A. Current Liability b. long term liability c. Current Assets D. long term asset.
21. A margin of 20% on sales=…………………. On cost.
A. 35% B. 25% C. 33.33% D. 16.66%
22. A margin of 1/3 on cost =……………. Of sales.
A. 1/5 B. 1/3 C. 1/4 D. ½.
23. Ploughing back of profit means……………
A. Gross profit B. Net profit C. Operating Profit D. Retained earnings.
24. The word “ Audire” Means……………..
A. To understand B. To hear C. To Audit D. To compare
25. Cash Equivalent means……………….
A. Cash balance B. Bank Balance C. Current Assets D. Cash and bank balance
26. PER indicates the relationship between ………… and ………… A. Price and Expense B. Price and Cost C. Price and Earnings D. None of these.
27. The actual cost incurred is recorded, in accounting irrespective of the market value and change in money value. This principle is termed as……………
A. Cost concept B. Dual aspect concept C. Historical record D.Consistancy.
From the informations given below, Choose the answers of questions 28-42.
Stock Velocity ---------------------------- - 6 Capital Turn over ratio ----------------- - 2Fixed assets Turn over ---------------- - 4Gross profit Margin --------------------- - 20%Debtors Velocity ------------------------ - 2 months
Creditors Velocity ------------------------ - 73 days[Assume 365 days]Gross Profir--------------------------- ------ - 60000Reserve & Surplus-------------------------- - 20000Closing stock in excess of opening stock - 5000Bill Receivable-------------------------------------- 10000 Bill Payable is---------------------------------------- Rs.5000. Net profit Margin-----------------------------------1/9 of cost
28. cost of sales=………………………
A.60000 B. 300000 C. 240000 D. None of these
29. The amount of sales is …………….
A. 240000 B. 200000 C. 300000 D. 400000
30. Total purchases during the period is………….
A, 200000 B. 180000 C. 245000 D. 240000
31. The value of closing stock =…………..
A. 47500 B.42500 C. 37500 D. 30000
32. The value of opening inventory is …………….
A. 47500 B. 37500 C. 42500 D. None of these
33. The amount of Receivables will be…………………
A. 50000 B. 40000 c. 30000 D. 3500034. The amount of debtors=…………….A. Rs.40000 B. Rs.50000 C. 30000 D. None of these
35.The value of creditors=…………….
A. 44000 B. 49000 C. 35000 D. 31000B.
36.The value of Payable=…………..
A. 49000 B. 45000 C. 35000 D. None of these.
37. The amount of Fixed assets estimated =………………….
A. 50000 B, 70000 C. 40000 D. 60000
38. The total amount of retained earnings will be……………..
A. 30000 B. 20000 c. 40000 D. 120000
39. The amount of sharecapital=…………….
A. 100000 B. 120000 C. 80000 D. none of these.
40. Total equity=……………………
A. 140000 B.120000 C. 100000 D. None of these.41.The amount of net profit will be…………………….
A. 23000 B. 25000 C. 30000 D. None of these.42. The amount of Gross Profit=…………..
A. Rs.40000 B. 60000 C. 30000 D.5000043. The term” networth” means……………..
A. Netprofit B. Equity C. Shares D. None of these.44. Budget prepared for different level of activities is termed
as…………..budget.A. Fixed budget B. Master Budget C. Flexible budget D. None of these.
45. Acid Test Ratio is used to test………………..A. Profitability B. Liquidity C. Turn over D. None of these.
46. In a soletrading business Income tax is treated as………………A. Expense B. Liability C. Income D. decrease in capital
A company spent . Rs.400000 for a huge advertise compaign, during the financial
Year, 2015-16. The benefit from that advertisement is expected and estimated for 5 years. On the basis of these information answer questions 47-50.
47. What type of expenditure is it?A. Revenue B. Capital C. Deferred Revenue D. None of these.
48.How much amount is debited to Profit and Loss during2015-2016.
A. 400000 B. 100000 C. 80000 16000049. How much is shown in Balance sheet as at 31-03-2016.
A. 400000 B. 300000 C.240000 D. 32000050. How much amount is shown in the Balance sheet as at 31-03-
2017.A. 240000 B.320000 C. 200000 D. 160000
51. If level of activity increase fixed cost per unit …………………..A. Remain constant B. Decreases C. Increases D. None of these.
52. Material used is an example of………………..cost.A. Fixed cost B. Variable cost C. Semi variable cost D.None of these.
53.Maslows “Heirarchy of needs” is associated with……………A. Planning B. Organising C. Controlling D. Motivation.
54.In marginal costing system ………………factor is considered for taking important decisions connected with profitability and operational activities.
A. Fixed cost B. Capital C. Net Profit D. Contribution.55. P/V ratio is the relation between………………. And ……………..
A. Profit and Volume of sales B. Sales and Gross Profit C. C. Profit and Variable costD. Contribution and sales.
56. The technique of dealing routine matters by lower level of management and exceptional cases by upper level management is termed as………
A, planning B. Decentralisation C. Management by Exception D. None of these
57.Zero base budgeting iwas proposed by……… A. Henry FayolB.Peter Drucker C. Peter Payal D. GestenBerg
58. Network of informal communication is termed as…………….A.Grapewine B. Diagonal C. Vertical D. Scalar Chain 59. Transmission of information among persons of the same level and status is termed as………..communication.A. Horizontal B. Vertical C. Upward D. Downward60. If communication flows froma persons at the centre to all other members of the group it is called……….. A. “Y” Pattern B. Chain Pattern C.Wheel Pattern D. Circle Pattern.
61. Capital Budget is the Budget Prepared for………………
A. Fixed Assets B. Total Capital C. Owners fund D. None of these.
62. ROI means the relationship between ……….. and investment.
A. Gross Profit B. return on Fixed Assets C. Retained Earnings. D. net income63.PERT IS…………….. technique introduced by US Navy.A. War technique B. Budgeting Technique C. planning Technique D. Control64. …………………Audit provides information about stronger and weaker points in an organization.A. Balance sheet t B. Periodical t c. Continuous D. Management65. MIS is a ………… based information system. A. Management B. Electronic C. Computer D. Data66. Control techbique introduced by J.E. Kelly is…………….A. PERT ,B. CPM C. Dupont D. None of these67. Lower level employees reluctant to communicate with their superiors. This barrier is termed as…………. A. Semantic B. Status C. Psychological D. Organisational68. Maximum freedom is allowed in………………..leadership. A. Laissez-faire B. Autocratic C. democratic D. None of these69. Modern marketing is………...oriented. a. Product B. Brand C. Customer D. Service.70. Differential piece rate system is a technique of…………management.A. Man power B. General c. Scientific D. Personnel.71. The process of offering new issue of shares to the existing shareholders is termed as…………….. A. Private Placement B. Sweat Equity C. Right Issue D. None of these.72. e-IPO means an agreement between a company and……………..for on line trading of securities. A. Govt. B.SEBI C. Board of Direcors D. Stock Exchange.73. Sweat Equity Means offering shares of new issue to……………
A. Financial instituitions C. Employees of the organizationB. Existing shareholders D. General public.74. Capital Budgeting refers to planning investment in…………. A. Shares B. Capital C. Projects and fixed assets D. None of these75. …………market is the market for short term funds. A. Capital market B. Money Market C. Finance market D. None of these.76. in e-commerce B2B transaction stands for business to…………… A. Business B. Banks C. Board of Directors D. None of these.77.Double Accounting system is followed in………. A. Banks 2. Industries C. Public Utility undertakings C. Trading Co’s.78. The management principle which suggests, every one must have a place and he must be in his place is………………… A. Social Order B. Personnel Order C. Material Order D. Positional order.79. The accounting standard Board was constituted in…………… A. 1956 B.1977 C. 1948 D. 200180. IFRS is connected with………………… A. Financial Service B. Foreign Service C. Accounting standards D. None of these.81. Accounting standard connected with presentation of financial statement is……… A. IAS 12 B, IAS 1 C. IAS 10 D. None of these.82. IAS 7 is concerned with……………… A. Balance sheet B. Fund flow statement C. Accounting Ratios. D. Cash Flow Statement.83. Carriage on purchase of Machinery debited to carriage A/c. It is an example of ……………….. A. Errors of Commission B. Errors of Commission C. Errors of Principle D. Compensating Errors.84. Errors affecting the Trial Balance is termed as………………
A. Compensating errors B. clerical Errors C. One sided error D. None of these.85. Wages paid for erecting a machinery is debited to wages A/c. What is the rectifying entry?
A. Debit wages and Credit Cash B. Debit Machinery and Credit Cash C. Debit machinery and Credit Wages D. Debit cash and credit wages.86.Bank Reconciliation statement is prepared to ……….. A. Varify Cash balance and bank balance. B. Varify bank balance as per cash book and pass book C. varify banking transactions. D. Find out correct bank balance.87. AS a management principle “Equity” means………… A. Ownership B. Equal ity and justice C. Equal work to all D. None of these.88. In Management “Delegation” is connected to ………… A. Responsibility B. Authority C. Deputation D. Authority and Responsibility,89.Planning is ………………oriented. A. Work B. Remuneration C, Goal D, None of these90. Where accounting ends…………….starts. A. Auditing B. Planning C. Controlling D. management.
