Achievers College of Commerce & Management ( Night College) , Kalyan Subject: Business law. Class- Fybaf Multiple Choice Question: 1) An agreement with or by a minor is _____. Void Voidable at the option of t he minor Voidable at the option of the other party Valid 2)On attaining the age of majority a minor ’ s agreement ______. Can be ratified by him Cannot be ratified by him Become void Becomes valid 3)A minor, by misrepresenting his age, borrows some money____. He can be sued for fraud He cannot be sued for fraud He is liable to return the money He is not liable to return the money 4)A minor enters into a contract for the purchase of certain necessaries. In such a case_____. He is not personally liable to pay He is liable to pay
Transcript
Achievers College of Commerce & Management ( Night College) , Kalyan
Subject: Business law. Class- Fybaf
Multiple Choice Question:
1) An agreement with or by a minor is _____.
Void
Voidable at the option of t he minor
Voidable at the option of the other party
Valid
2)On attaining the age of majority a minor ’s agreement ______.
Can be ratified by him
Cannot be ratified by him
Become void
Becomes valid
3)A minor, by misrepresenting his age, borrows some money____.
He can be sued for fraud
He cannot be sued for fraud
He is liable to return the money
He is not liable to return the money
4)A minor enters into a contract for the purchase of certain necessaries. In such a case_____.
He is not personally liable to pay
He is liable to pay
His estate is liable to pay
His guardian is liable to pay
5)A person is usually of unsound mind, but occasionally of sound mind_____.
He may enter into a contract when he is of sound mind
He may not make a contract even when he is of sound mind
He cannot enter into a contract at all
He can enter into a contract at all time
6) A contract by an idiot is ____.
Voidable
Enforceable
Invalid
Void ab initial
7)Contract Made before war with an alien enemy which are against public policy are ____.
Suspended and are revived after the war is over
Dissolved
Not affected at all
Void ab initio
8)The contractual capacity of a company is regulated by_____.
It’s Memorandum of Association and the provision of the Companies Act, 1956
The terms of contract entered into with a third party
It’s Articles of Association
It’s prospects
9) The Case of Mohiri Bibi v. Dharmodas Ghose, (1903) 301Cql. 539 deals with
Communication of offer
Communication of acceptance
A minor’s agreement
Fraud
10)Flaw in capacity to contract may arise from ____.
Want of consideration
Unsound ness of mind
Illegality of object
Uncertainty of object
11)A contract creates _____.
Rights in personam
Rights in rem
Only Rights and no obligation
Only Obligation and no rights
12)An agreement not enforceable by law is said to be____.
Void
Voidable
Illegal
Unenforceable
13)An agreement is a voidable contract when it is ____
Enforceable if certain conditions are fulfilled
Enforceable by law at the option of the aggrieved party
Enforceable by both the parties
Not Enforceable at all
14)Consideration in a contract ______.
May be past, present or future
May be present or future only
Must be present only
Must be future only
15)A contract of life insurance is______.
A contract of indemnity
Not a contract of indemnity
A wagering agreement
Not a contingent agreement
16)A wagering agreement is _____.
Forbidden by law
Immoral
Opposed to public policy
Illegal
17)The right of subrogation in a contract of guarantee is available to the ______.
Creditor
Debtor
Surety
Owner
18)S & M go into a shop. S says to the shopkeeper, C, let M have the goods , and if he does not
pay you, I will. This is a _____.
Contract of guarantee
Contract of indemnity
Quasi - Contract
Contract of Principle
19)The omission of the creditor to sue within the period of limitation _____.
Discharge the surety
Does not discharge the surety
Makes the contract of guarantee void
Makes the contract of guarantee valid
20)Goods means ______
Every kind of movable property
Any immovable property
Money
Possession
21)In case of destruction of goods after sale, loss is born by the _____.
Seller
Buyer
Creditor
Third party
22)General property in goods means _____.
Ownership
Possession
Delivery
Subject matter of contract
23)Where the price is not determined by the contract, the buyer shall pay ___
Any price
Price fixed by the third party
Reasonable price
Price fixed by the seller
24)A contract of Sale of goods is a contract whereby the seller ___
Transfers the property
Transfers the possession of goods
Transfer the money
Transfer the goods
25)A stipulation essential to the contract is called _____.
Warranty
Condition
Warranty and conditions
Guarantee and conditions
26)The doctrine of Caveat Emptor means ____.
Seller beware
Buyer beware
Seller and buyer beware
Agent beware
27)In case of breach of warranty by the seller buyer can_____.
Repudiate the contract
Treat the breach of warranty as a breach of condition
Can sue for damages only
Cannot sue for damages
28)In case if breach of condition the seller ____.
Buyer can reject the goods
Only sue for damages
Does not have any right under the sale of goods act
Have right for damages under the sale of goods act
29) In a sale of goods by sample_____.
Bulk of the goods must correspond with the sample in quality
Bulk of the goods must correspond with the sample in quantity
Bulk of the goods must not correspond with the sample
Bulk of the goods must not correspond with the sample of both quality and quantity
30) In a sale there is an implied condition on the part of the seller that ____.
He has a right to sell this goods
He will have the right to sell the goods at a future date
He has a possession of goods
He cannot right to sell this goods
31)Risk Pura facie passes with ____.
Possession
Payment of price
Ownership
Creditor
32) The main object of the contract of sale is ______.
Transfer of property in goods
Transfer of possession of goods
Transfer of money as a price for the goods
Transfer of possession in property
33)Where there is a contract of sale of specific goods in deliverable state, the property in the
goods passes to the buyer when________.
The contract is made
The payment is made
The goods are delivered
The goods is in transit
34)Particular lien is a right of an unpaid seller ____.
To retain the goods
To regain possession of goods
To deal with the goods
To retain the property
35)To exercises the right of lien by the unpaid seller
Lawful possession is essential
Title of the goods is essential
Whether buyer had paid the price or not
Unlawful possession is essential
36)The right of stoppage-in-transit requires that _____.
Goods are in the hands of the buyer
Goods are in the hands of the agent
Goods are in the transit and in the hands of the carrier
Goods are in the hands of the seller
37) The right of stoppage in transit can not be exercised by the unpaid seller_____
Unless buyer becomes insolvent
Buyer refuses to pay the price of the goods
Buyer communicates to the seller that goods are in transit
Unless seller becomes insolvent
38)When unpaid seller has not given notice of re-sale to the buyer and there occurs a loss on
re-sale_____.
The unpaid seller can recover the loss from the buyer
The unpaid seller cannot recover from the buyer
The buyer can recover from the unpaid seller
The seller cannot recover from the buyer
39)Right of lien available to the unpaid seller is _____.
Particular lien
General lien
Equitable lien
Special lien
40)If the goods are rejected by the buyer and the carrier continues in possession of the goods,
the transit ____.
Not deemed to be at the end
Is deemed to be at the end
Deemed not for goods
Deemed not for property
41)An unpaid seller can exercise the right of lien _____.
Where the goods are sold on credit
Where the goods are sold in credit but the terms of credit has expired
When he is not an unpaid seller
When he is unpaid seller
42) Contract of sale is divided into
Sale and Hire Purchase Agreement
Agreement to Sell and Bailment
Hire Purchase Agreement plus Bailment
Sale and Agreement to sell
43)Sale creates a _____.
Right in rem
Right in personam
General right
Specific right
44) Agreement to sell becomes sale ____
When times places
When delivery is made
When the price is paid
When services is made
45)The position of the hire purchaser is that of a _____.
Owner
Bailee
Creditor
Debtor
46)Sale of Goods Act applies to ______.
Contract of work and labour
Contract of Exchange of goods
Contract of sale of goods for money consideration
Contract of services
47)A contract of indemnity is a _____.
Contingent contract
Wagering Contract
Quasi contract
Agreement
48)The definition of a contract of indemnity as given in the Indian contract Act, 1872 includes
____.
Implied promises to indemnity
Cases where loss arises from accidents and events not depending on the conduct of the promisor
or any other person
Cases where the loss is caused by the conduct of the promisor himself or by the conduct of any
other person
Implied promises to debtor
49) Any variance made without surety ’s consent in the terms of the contract between the
principal debtor and the creditor discharge the surety ___.
As to transaction prior to variance
As to transaction subsequent to variance
As to all transactions
As to transaction prior to debtor
50)A guarantee obtained by a creditor by keeping silence as to material circumstances is ____
Valid
Voidable
Invalid
Illegal
51)Where there are co-sureties, a release by the creditor of one of them____.
Discharge the other co-sureties
Does not discharge the other co-sureties
Makes the co-sureties immediately liable
Does not make the co-sureties immediately liable
52)An agreement, the meaning of which is not certain , is _____.
Void
Voidable
Valid
Illegal
53)An agreement to do an impossible act is _____.
Void
Voidable
Illegal
Enforceable under certain circumstances
54)An agreement made without consideration is _____.
Valid
Illegal
Voidable
Void
55)A promise to compensate, wholly or in part, a person who has already voluntarily done
something for the promisor is____.
Enforceable
Not enforceable because it is without consideration
Void
Voidable
56)Compromise of disputed claims_____.
Is a good consideration for a contract
Is not a good consideration for a contract
Result in a void agreement
Is not permitted by law
57)Consideration must be something which the promisor ____
Is already bound to do
Is not already bound to do
May voluntarily do
Must not do
58)Consideration _____
Must be adequate to the promise made
Need not be adequate to the promise made
Must be of reasonable value
Must be or more value than the value of promise made
59)Consideration _____
Must move from the promise
May move from the promisee or any other person
May move from the third party
May move from the promisor
60)Consideration must move at the desire of _____.
The promisor
The promisee
Promisor or any third party
Any third party
61)Which section is related to offences by companies?
Section 142
Section 140
Section 134
Section 141
62)A promissory note dated 1st January is payable three months after date it ’s falls due on___
3rd April after additing 2 days of grace
4th April after additing 3 days of grace
4th April after additing 2 days of grace
3rd April after additing 3days of grace
63)In case of bill of exchange, a drawer of a bill of exchange can also be ___
Payee
Drawee
Acceptor
Creditor
64)Which is not a object of the consumer protection Actt, 1986
The right to be protected
The right to be heard
Buy any goods for a consideration
The right to seek redressal
65)A bill dated 30th December is made payable three months “after date”.
It falls due on 2nd April after additing 3 days of grace
It falls due on 3rd April after additing 3 days of grace
It falls on 30th March after additing 3 days of grace
If falls on 1st April after additing 3 days of grace
66)Which one is duty of the buyer-
To apply for delivery
To examine
To repudiate
To reject the goods
67)A forced B to enter into a contract at the point of pistol, what remedy is available to B if he
does not want to be bound by the contract-
Consent of B is free consent
Consent of A is free consent
Consent of B is not free consent and is caused by coercion
Consent of B is not free consent and is caused by fraud
68)Consideration need not be ____.
Void
Adequate
Valid
Legal
69) Past consideration is no consideration as per____of contract.
As per Indian law
English law
International law
Government law
70)Agreement by way of wager is ___
Voidable
Illegal
Valid
Void
Achievers College of Commerce and Management, Night (W)
Subject: Bussiness Mathematics
F.Y. BAF Semester - II
Multiple Choice Questions
1. If the angles of a triangle are in the ratio 3 : 8 : 9, then their respective degree measures
are
(a) 27°, 72°, 𝟖𝟏° (b) 32°, 70°, 78°
(c ) 24°, 64°, 92° (d) 40°, 60°, 80°
2. The angles of a triangle are in the ratio 11 : 10 : 9 and the respective degree measures
Fund with a front – end load of 5% . If 4,000 units were purchased, the N.A.V. on the
date of purchase was
(a) Rs 21 (b) Rs 20 (c) Rs 40 (d) Rs 10
70. The difference between simple and compound interest on an amount at r % p.a. after
one year is
(a) Zero (b) One (c) 100 (d) 50
ACHIEVERS COLLEGE OF COMMERCE &
MANAGEMENT,(NIGHT COLLEGE), KALYAN
Class: F.Y.BAF Subject: Foundation Course-II
1. The term _____ refers to freedom to business enterprises from excessive
government control.
a) privatization
b) liberalization c) globalization
d) disinvestment
2. The term ____ implies reduction in the role of public sector and increase in
the role of private sector in business and non-business activities.
a) privatization b) liberalization
c) globalization
d) disinvestment.
3. _____ means integrating the national economy with the world economy.
a) Privatization
b) Liberalization
c) Globalization
d) Disinvestment
4. ____ is a process of selling government equity in PSUs to private parties.
a) Privatization
b) Liberalization
c) Globalization
d) Disinvestment
5. ____ refers to coerced movement of people away from their home.
a) Local migration
b) Regional migration
c) Forced migration d) Mass migration
6. ______ is working with farmers by corporate firms and sharing the rewards.
a) contract farming
b) corporate farming
c) government farming
d) private farming
7. _____ is undertaken by large corporate firms either by buying the land or
taking on lease basis.
a) contract farming
b) corporate farming c) government farming
d)private farming
8. As per the New Industrial Policy, 1991, licensing is required only in ___
industries.
a) Five
b) Six c) Seven
d) Eight
9. The government of India has given autonomy to the Board of Directors of
PSUs in ______
a) selection
b) recruitment
c) decision-making d) training
10. As per the New Industrial Policy, 1991, at present there are only ___
industries reserved for public sector.
a) three b) four
c) five
d) six
11. _____ means movement or shift of people from one place to another.
a) Migration b) Liberalization
c) Globalization
d) Privatization
12. In the state of ____ the number of farmers’ suicides is the highest.
a) Madhya Pradesh
b) Karnataka
c) Maharashtra d) Chhattisgarh
13. Economic liberalization was a bold decision by the Prime Minister ______.
a) Narsimha Rao b) Rajiv Gandhi
c) Atal Bihari Bajpai
14. The Government has launched the ________ intiative in September, 2014
a) Make in India
b) Swachh Bharat Abhiyan,
c) Quit India,
d) Save girl child
15. _________ pointed out that human rights are the minimal rights, which
every individual must have against the State or authority.
a) Justice Durga Das
b) Aristotle
c) King John
d) Hellenistic
16. The barons presented their demands at the Runnymede Meadow on
the______ river on June 1215.
a)River Trent
b)River Thames
c) River Avon
d) River Lea
17. Human rights are derived from the principles of ____ law.
a) Government
b) Natural
c) Judicial
d) Human
18. The UDHR consists of a Preamble and ____ articles highlighting human
rights and freedoms entitled to everyone in the wqorld.
a) 15
b) 20
c) 10
d) 30
19. Article 15 of the Constitution provides fro ____ equality and equal acess to
public areas.
a) Legal
b) Judicial
c) Social
d) Religious
20. Human Rights in more specified and wee-defined manner came with the
signing of ____- in 1215.
a) Theory of Natural Law
b) UDHR
c) Magna Carta
d) The Natural rights Theory
21. Article 21 (A) has made _____ education as a fundamental right .
a) Higher
b) Secondary
c) Primary
d) Management
22. The Constitution of India classifies the fundamental rights under ___
groups.
a) 5
b) 6
c) 7
d) 8
23. We obtained independence on 15th
August_____.
a) 1947
b) 1948
c) 1949
d) 1950
24. The Universal Decleration of Human Rights was adopted by United
Nations- General Assembly on __________ 1948
a) 10th
December
b) 10th
January
c) 10th
August
d) 10th
June
25. Grotius defined natural law as a _____________.
a) democracy
b) dignity of son of man
c) dictate of right reason
d) image of god
26. The National Rights theory first germinated in _____ Thoery Ethics as the
basis for politics.
a) Grotius
b) Locke
c) Hobbes
d) Dr.Ambedkar
27. Abolition of _____ is provided under Article 17 of the Indian Constitution.
a) Caste
b) Child Labour
c) Untouchability
28. ______ law can be traced to the thoughts of Sophocles and Aristole.
a) Personal
b) Natural
c) Human
d) Social
29. _____ is the abiotic and biotic elements that surround humans.
a) Ecology
b) Environment
c) Ecosystem
d) Geology
30. Acid rain is one of the harmful effects of _____ pollutin.
a) Air
b) Water
c) Noise
d) Land
31. ____ gas protect us from UV rays emitted by sun.
a) Ozone
b) Carbon dioxide
c) Nitrogen
32. The ___ are the small living beings such as bacteria, insects and fungi
a) Primary producers
b) Consumers
c) Decomposers
d) Terrestrials.
33. The _____ consumers are the third level carnivorous like eagles that eats
other birds and reptiles like snakes.
a) Primary
b) Secondary
c) Tertiary
d) Quaternary
34. _______ is that part of the environment made or modified by human and
used for their activities.
a) Anthrosphere
b) Atmosphere
c) Lithosphere
d) Biospehere
35. The ____ is composed of al l living organism; plants, animals, and one-
celled organism.
a) Lithosphere
b) Hydrosphere
c) Biosphere
d) Atmosphere
36. The _____ is a layer of gases surrounding our plant.
a) Lithosphere
b) Hydrosphere
c) Biosphere
d) Atmosphere
37. _______ is the process of destroying or removing a forest ecosystem.
a) Desertification
b) Deforestation
c) Soil Erosion
d) Emissions
38. The ______ or omnivorous are human beings and others who consume both
the plant food and the animal food.
a) Primary
b) Secondary
c) Tertiary
d) Quaternary
39. _______ is the branch of study of the interrelationships with the organism
and its environment.
a) Environment
b) Ecology
c) Biology
d) Degradation
40. _______ ecology is the study of how political, economic and social factors
affect environmental issues.
a) Social
b) Economic
c) Political
d) Environmental
41. The Rio Declaration consisted of ___ principles intended to guide future
sustainable development around the world.
a) 27
b) 28
c) 37
d) 47
42. _______ can occur due to natural factors such as floods, earthquakes etc.
a) Desertification
b) Environmental Degradation
c) Soil Erosion
d) Emissions
43. ______ is the term used to describe positive stress.
a) Organizational
b) Democracy
c) Eustress
d) Luthans
44. The ____ stressors are also called job- related stressors.
a) Organizational
b) Group
c) Individual
d) Environmental
45. _____ arises when goal directed behavior is blocked or thwarted.
a) Stress
b) Anger
c) Frustration
d) Violence
46. _____ is a situation in which two or more parties feel themselves I n
opposition.
a) Stress
b) Anger
c) Conflict
d) Violence
47. The family influence a person’s _____ through mirror image of himself/
herself.
a) Behavioral
b) Attitude
c) Self-concept
d) lifestyle
48. ____-refers to oral and social norms that are essentially desirable for the
well-being of an individual, group or society.
a) Value
b) Behavior
c) Ethics
d) Prejudice
49. _______ provide moral principles and rules of god conduct to be followed
by individuals in a society.
a) Value
b) Behavior
c) Ethics
d) Prejudice
50. ______ implies a preconceived and unreasonable judgment or opinion,
usually an unfavorable one, arising out of fear, hatred or suspicion.
a) Value
b) Behavior
c) Ethics
d) Prejudice
51. ______ are generalization or assumption about the characteristics of traits of
people belonging to a group.
a) Ethics
b) Stereotypes
c) Prejudice
d) Conflicts
52. _____ refers to behavioral by individuals that intentionally threatens,
attempt, or inflict physical harm on others.
a) Conflict
b) Violence
c) Aggression
d) Prejudice
53. _____ occurs when the person does not know what he is supposed to do on
the job.
a) Role conflict
b) Role ambiguity
c) Rotating shifts
d) Work under load
54. _______ once remarked “ Coming together is a beginning, keeping together
is progress; working together is success.
a) Henry Ford
b) Walter Mac Peek
c) Aristotle
d) Albert Einstein
55. _____ once remarked “ Try not to become a man of success, but rather a
man of value.
a) Henry Ford
b) Albert Einstein
c) Walter Mac Peek
d) Aristotle
56. _____ once remarked “ Sometimes great life- changing values come to us in
brief moments of contact with high potential personalities”
a) Henry Ford
b) Albert Einstein
c) Walter Mac Peek
d) Aristotle
57. _____ helps to develop the power of concentration.
a) Physical exercise
b) Meditation
c) Time Management
d) Social support
58. ______ means forming close associations with trusted friends and co-
workers.
a) Networking
b) Biofeedback
c) Social support
d) Relaxation
59. _________ need include appreciation and search for beauty, love for art land
architect forms.
a) Cognitive
b) Aesthetic
c) Transcendence
d) Security
60. In the method of ______, the stress victim is under the medical guidance
a) Networking
b) Biofeedback
c) Social support
d) Relaxation
61. The _____ needs lie at the highest level of the hierarchy of Maslow’s Need
Hierarchy Theory.
a) Physiological
b) Social
c) Esteem
d) self-actualization
62. ____ are expressive and try to criticize someone or the other irrespective of
the issues of conflict resolution.
a) Concealers
b) Attackers
c) Addressers
d) Confronters
63. Maslow identified __ sets of human needs.
a) 4
b) 5
c) 6
d) 7
64. _____ strategy eliminated the conflict by having both individuals “lose”
something.
a) Lose/Lose
b) Win/Lose
c) Win/Win
65. Maslow has provided an _______ of human race.
a) Avoiders
b) Oversimplification of needs
c) First – stepper
d) Confronters
66. ______ are aggressive and attack the opponent openly.
a) Behind the back
b) Up- front attackers
c) First- steppers
d) Confronters
67. _____ are the person who simply avoid conflict.
a) Subject- changers
b) Feeling- swallowers
c) Avoiders
d) Confronters
68. After Cognitive needs, _____ need is place in the hierarchy of needs.
a) Esteem
b) Social
c) Aesthetic
d) Safety and security
69. ______ need includes search of knowledge and meaningful living.
a) Esteem
b) Social
c) Cognitive
d) Aesthetic
70. ______ facing conflict directly and working it through to a mutually
satisfactory resolution.
a) Forcing
b) smoothing
c) Avoiding
d) Confronting
Achievers College of Commerce and Management (Night College),
Kalyan
Subject: Business Communication II Class: FY.BAF
Module 1: 1. An interview involves _______ communication
a) Face to face b) Oral
c) Verbal
d) Written
2. The first step in the WASP technique is ______
a) Demotivating the candidate
b) Welcoming the candidate c) Identifying the candidate
d) Verify the candidate
3. To guard against halo error, interviewer must avoid being ______
a) Friendly
b) Biased c) Unfriendly
d) Unbiased
4. Mirror image error and _________- error are reverse of each
other.
a) Screening
b) Contrast
c) Complaint
d) Business
5. Proficiency of an employee is judged through ______ interview.
a) Grievances
b) Selection
c) Exit
d) Reprimand
6. _________ interviews allows employers to know the problems
faced by employees.
a) Grievances b) Selection
c) Reprimand
d) Exit
7. Employees speak frankly and fearlessly in an ______ interview.
a) Under-stress
b) Exit c) Selection
d) Reprimand
8. An ________ is control of an interview.
a) Interviewer b) Interviewee
c) Secretary
d) Chairman
9. ______ is a verbal oriented test and the candidate has to talk his
way out.
a) Group Discussion b) Notice
10. The group discussion test is also a _______ test, the aim of
which is the natural leadership level of the candidate.
a) Oral
b) Written
c) Verbal
d) Leadership
11. A decision by majority members of a group is known as
decision by ______
a) Consensus b) Think alikes
c) Committee
d) Host
12. The first item on the agenda is ________
a) Passing and audit
b) Reading the agenda
c) Passing the minutes
d) Reading and approving the minutes of the previous meeting.
13. _____ theory is based on rewards and its costs.
a) Social
b) Business
c) Legal
d) Exchange
14. In _______ stage the group demonstrates cohesiveness.
a) Norming b) Performing
c) Formative
d) Summative
15. For a permanent group ______ is the largest stage of group
formation.
a) Performing b) Norming
c) Summative
d) Formative
16. Members share an ideology in ______ organization.
a) Social
b) Formal
c) Mentally
d) Psychological
17. ________ meetings do not follow rules of procedure.
a) Formal
b) Verbal
c) Written
d) Informal 18. _____ meetings are conducted once in a year.
a) Annual General
b) Executive
c) Annual
d) General
19. Meetings have a ____ agenda.
a) Fixed
b) Indefinite
c) Not fixed
d) Definite
20. _____ ensures that the meeting is properly convened, and
there is quorum.
a) Chairman b) Convenor
c) Secretary
d) Host
21. Paperwork is the responsibility of the ________
a) secretary b) Chairman
c) Host
d) Committee
22. The procuders for calling a meeting is determined by _____
rules
a) Formal b) Convener
c) Informal
d) Secretary
23. A conference is relatively _____ as compared to committee
meetings.
a) Formal b) Informal
c) Secretary
d) Convener
24. Participants in a conference ____ voting rights
a)have
b)do not have
c) must have
d) can have
25. _______ address is a speech by the Chief Guest about the
purpose need and possible outcomes of a conferences.
a) Public
b) Keynote c) Host
d) Secretary
26. A research paper is analysed at a _______ conference.
a) Meeting
b) Committee
c) Host
d) Conference
27. ________ allows web tours.
a) Skype
b) Whatsapp
c) FB
d)Webinar
28. ____ is an application that provides video chat and voice call
services.
a) Webinar
b) FB
c) Whatsapp
d) Skype
29. A standing committee is also referred to as _____ committee.
a) Ad- Hoc
b) Norming
c) Performing
d) Permanent
30. Crisis management is the work of ______ professionals.
a)Public relation
b) IT
c) Doctors
d) Business
31. Employees, who participate in management training
programs, can improve their chances for _____.
a) Leadership
b) Demotion
c) Interview
d) Promotion
32. Public relation professionals often need to ______ .
a) Lie
b) Rectify
c) Business
d) Multitask
33. Public relations forms a link between top management and
________ .
a) Peoples
b) Secretary
c) Host
d) Public
34. Public relation officers can act as _______ to the
management.
a) Advisors b) Obeyors
c) Business men
d) Doctors
35. __________ management is handles by Public Relation
professionals.
a) Event
b) Entertainment
c) Disasters
d) Crisis
36. _____ news about important political, social, economical or
religious events briefly covered.
a) Local
b) District
c) National
d) General
Module 2:
37. ______ must be used with caution.
a) Letters
b) Grammar
c) Notice
d) Language
38. A letter of ______, expressing regret for the cause of
complaint , which should be immediately written.
a) Sequence
b) Body
c) Salutation
d) Acknowledgement
39. A very significant part of any trading activity consists of
_____, because inquires are procurers of business.
a) Claims
b) Salutation
c) Circulars
d) Inquiries
40. A friendly and co- operative attitude has the power to
transform the inquiry into an ______-
a) Transport
b) Import
c) Export
d) Order
41. Catalogue price- list an other literature is sent by seller in
response to a letter of ______.
a) Inquiry b) Partial
c) Circulars
d) Claims
42. Attending to complaints is known as _______
a) Claims
b) Partial
c) Circulars
d) Adjustment
43. _______ refers to letters written to give information about
defective goods and services, while claims refers to letters where
some compensation for the inconvenience or financial loss
incurred by the writer is demanded.
a) Claims
b) Partial
c) Adjustment
d) Complaints
44. Even if complaint is found to be false, the seller should draft
his reply in a ______ way.
a) Rude
b) Unrude
c) Emotional
d) Polite
45. Where differences of opinion arises the seller an the buyer, a
________ adjustment letter is written.’ a) Complaint
b) Adjustment
c) Claims
d) Partial
46. According ______ “You take something attractive and make
it seem necessary , or you take something necessary and make it
seem attractive”.
a) L.Gartside b) Aristole
c) Albert Einstein
d) Alexandra
47. In AIDA formula, D stands for ______.
a) Demand
b) Desire
c) Disinvestment
d) Documents
48. The _____ is bright or brilliant beginning to attract attention
and arouse Interest.
a) Star b) Hook
c) Sign
d) Hike
49. The Hook ____ action and tries to catch the reader into
purchasing net.
a) To attract attention
b) To take action
c) To make it readable
d) To motivate action
50. _____ creates awareness of consumers legitimate rights.
a) Consumer Guidance cell b) Lawyers
c) Doctors
d) Business Men
51. ______ is defined as any movable property including shares.
a) Service
b) Shareholders
c) Business
d) Goods
52. The complaint ______ in any Indian language.
a) Can be
b) Cannot be
c) Should not be
d) Is a must
53. Lawyers _____ be hired to lodge a compliant in the
consumer court.
a) Must be
b) Should be
c) Can be
d) May not be
54. A consumer redress letter is drafted like any _____ letter.
a) Complaint b) Sales
c) Trade
d) Circulars
55. Complaint is to be filed within ___ years
a) 2 b) 3
c) 4
d) 5
56. RTI stands for ______
a) Role to Imitate
b) Role to Invite
c) Right to Interview
d) Right to information
57. The RTI act extends to the whole of India except the State of
______
a) Kerala
b) Maharashtra
c) Madhya Pradesh
d) Jammu and Kashmir
58. The punishment includes imposition of a penalty of ____
rupees.
a) 270
b) 230
c) 220
d) 250
59. Application should be submitted to ______.
a) PIO or APIO or the head of the department. b) Pension officers
c) Government officers
d) Officials
60. The PIO should respond within ____ days of the receipt of
the application.
a) 20
b) 40
c) 50
d) 30
61. ______ report may be in the form of a personal letter.
a) Formal
b) Verbal
c) Written
d) Informal
62. According to Encyclopedias of Business terms, A business
proposals is a _____ document to a prospective client in order to
obtain a specific job.
a) Written b) Oral
c) Verbal
d) Readable
Module 3
63. ____ report follows a prescribed format.
a) Formal
b) Informal
c) Verbal
d) Oral
64. ______ presents relevant facts and figures.
a) Summative
b) Formative
c) Informal
d) Informative
65. Individual Committee report is determined by the number of
______.
a) Modern
b) Ancient
c) Group
d) Periodic
66. A _____ is a condense version of communication material
such as talk, a discussion, a report, a series of letters, etc.
a) Communication
b) Oral
c) Reading
d) Summary
67. Finding a ____ is helpful in keeping our summary close to
the theme.
a) Title
b) Closing
c) Body
d) Salutation
68. The state of the World’s Children report 1997, focusing on
the problem of the child labor, was released by ____- in Bombay
to mark 50th
anniversary.
a) WTO
b) NASA
c) FAO
d) UNICEF
69. A summary, as the suggests is nothing but a “totalling up” or
________ of the main points of information of the orginal
communication.
a) Precise
b) Running up gaining up
c) Summing up
70. An ______ report presents facts and figures pertinent t an
issue or a situation.
a) Informative b) Interpretative
c) Summative
d) Formative
Achievers College of Commerce and Management,
Kalyan (w)
Subject: - Financial Accounting (SEM II)
Class:- FY.BAF
Module 1:- Accounting for Incomplete Records
1. If books are kept under single entry system, credit sales are ascertained by
preparing_______________
(a) Total Creditors Account
(b) Total Debtors Account
(c) Credit Sales Account
(d) Trading Account
2. If books are kept under single entry system, credit purchase are ascertained by
preparing_______________
(a)Total Creditors Account
(b)Total Debtors Account
(c)Credit Purchase Account
(d)Bills payable Account
3. If books are kept under single entry system, opening stock is ascertained by
preparing__________
(a) Opening Stock Account
(b) Stock Register
(c) Memorandum Trading Account
(d) Opening Statement of Affairs
4. Opening Capital is ascertained by preparing____________
(a) Total Creditors Account
(b) Total Debtors Account
(c) Cash Account
(d) Opening Statement of Affairs
5. Cash received from debtors needed for the construction of cash account can be
ascertained from______________
(a) Total Debtors Account
(b) Balance sheet
(c) Analysis of cash book
(d) Pass book
6. Closing balance of trade creditors can be ascertained from____________
(a) Total Creditors Account
(b) Balance sheet
(c) Bills payable Account
(d) Cash Book
7. An estimate of assets & liabilities as on a date is called_____________
(a) Balance sheet
(b) Statement of Affairs
(c) Statement of capital
(d) Trail balance
8. Capital in the beginning of the year is ascertained by preparing:________________
(a) Cash Account
(b) Opening Statement of Affairs
(c) Total Debtors A/c
(d) Total Creditors A/c
9. Capital at the end of the year is ascertained by preparing:________________
(a) Cash Account
(b) Closing Statement of Affairs
(c) Total Debtors A/c
(d) Total Creditors A/c
10. Closing Cash balance can be ascertained by preparing___________
(a) Memorandum Trading Account
(b) Cash Book
(c) Opening Statement of Affairs
(d) Closing Statement of Affairs
11. Credit Sales can be ascertained from________________
(a) Cash Account
(b) Total Debtors Account
(c) Balance Sheet at the end of the year
(d) Closing Statement of Affairs
12. If the rate of gross profit is 25% on sales and the cost of goods sold is Rs 1,00,000 the
gross profit will be_______________
(a) Rs 25,000
(b) Rs 33,333
(c) Rs 28,000
(d) Rs 25,000
13. Collection from debtors is ascertained by________________
(a) Debtors Account
(b) Creditors Account
(c) Sales register
(d) Purchase register
14. Cash Purchase can be calculated from_____________
(a) Cash Book
(b) Total Creditors Account
(c) Opening Statement of Affairs
(d) Closing Statement of Affairs
15. Cash Sales can be calculated from_____________
(a) Cash Book
(b) Total Creditors Account
(c) Opening Statement of Affairs
(d) Closing Statement of Affairs
16. ________system records cash and personal account
(a) Double Entry System
(b) Single Entry System
(c) Triple Entry System
(d) Closing Statement of Affairs
17. ____________Account is prepared to ascertain Bills Payable from creditors.
(a) Cash Book
(b) Bills Payable
(c) Bills Receivable
(d) Debtors
Module 2:- Consignment Accounts
1. The relationship between the “consignor” and the” consignee” is that
of________________
(a)“Principal & Principal”
(b)“Agent and Principal”
(c)“Principal & Agent”
(d) “Agent and Sub-Agent”
2. Goods sent on consignment are the property of___________________
(a) The consignee
(b) Both the consignor and the consignee equally
(c) Either the consignor or the consignee
(d) The consignor
3. Performa invoice is prepared by the______________
(a) Seller
(b) Buyer
(c) Consignor
(d) Consignee
4. An Account Sales is________________
(a) A ledger account in the books of the consignee
(b) A ledger account in the of the consignee
(c) A statements showing particulars of goods sent etc.
(d) Balance sheet
5. In consignment accounting, to consign means__________
(a) To receive
(b) To purchase
(c) To send
(d) To transfer
6. Closing balance of Del Credre Commission Account is transferred to ____________
(a) Consignor’s Account
(b) Consignment Account
(c) Consignment Debtors Account
(d) Profit & Loss A/c
7. In consignment Accounting, consignor is_____________
(a) Principal
(b) Agent
(c) Debtors of the consignee
(d) Consignee
8. In Consignment Accounting, consignment is__________________
(a) Real A/c
(b) Personal A/c
(c) Nominal A/c
(d) Consignee’s A/c
9. In Consignment Accounting, consignment is__________________
(a) Real A/c
(b) Personal A/c
(c) Nominal A/c
(d) Consignee’s A/c
10. Balance of Consignment A/c indicates________________
(a) Profit & Loss A/c
(b) Goods sent to Consignor
(c) Balance of goods with Consignee
(d) Consignee’s A/c
11. If the consignor carries on Trading business, then the balance of goods sent to
consignment A/c___________
(a) Profit & Loss A/c
(b) Trading A/c
(c) Purchase A/c
(d) Consignment A/c
12. Closing Stock with consignee is shown in the balance sheet of_________
(a) Consignee
(b) Consignor
(c) Agency
(d) Principal
13. When the Consignor sends goods to consignee he prepares a ____________
(a) Account Sale
(b) Cash memo
(c) Proforma Invoice
(d) Credit memo
14. A periodic statement furnished by the consignee to consignor is__________
(a) Performa Invoice
(b) Debit Note
(c) Account Sales
(d) Credit Note
15. Where goods are sent on consignment, credit is given to____________ in the books
of consignor.
(a) Purchase A/c
(b) Goods sent on Consignment A/c
(c) Consignment A/c
(d) Consignee’s A/c
16. Del. credre commission is calculated on_______________
(a) Total sales
(b) Cash sales
(c) Credit sales
(d) Net sales
17. If Del Credre commission is paid then ____________account should be debited for
credit sales.
(a) Consignee A/c
(b) Consignment A/c
(c) Consignment Debtors A/c
(d) Consignor A/c
18. Consignor sends to consignee_____________
(a) Proforma Invoice
(b) Account Sales
(c) Sales Account
(d) Invoice
Module 3:- Branch Accounts
1. Which of the following is not true about independent branch______________
(a) These branches can purchase goods from open market
(b) They maintain complete set of double entry system
(c ) They also maintain head office account
(d) They do not charge depreciation on fixed assets
2. When goods are invoiced to branch price, the value of goods is adjusted
by__________
(a) Debiting Goods sent to Branch Account
(b) Debiting Branch Adjustment Account
(c) Debiting Stock Reserve Account
(d) Debiting Branch Account
3. Goods are sent to Branch at cost plus 20%. The loading on the invoice price will
be_______
(a) 16.67%
(b) 28%
(c) 33.33%
(d) 25%
4. When Brach ‘A’ sends goods to Branch ‘B’,in the books of Branch ‘A’ debit is given
(a) Head Office A/c
(b) Branch ‘B’ A/c
(c ) Both H/O A/c and Branch A/c
(d) No entry
5. In case of a dependent branch ‘Branch Fixed Assets A/c’ are maintained
by________________
(a) Branch
(b) Head Office
(c ) Department
(d) Fixed Assets
6. Which of the following is not true about dependent branch?
(a) These branch sell only those goods which are received from the head office
(b) All expenses of the branch are paid by the head office
(c ) Petty Expenses are paid by the branch and petty cash account is prepared at the
branch either as simple petty cash or on Imprest system
(d)Such departments maintain their own books of account
7. Goods sent by HO to the branch not received by the branch are termed as___________
(a) Branch Account
(b) Goods in transit
(c) Head Office A/c
(d) Nominal A/c
8. If profits on cost is 25% then profit on sales will be___________
(a) 25%
(b) 20%
(c) 30%
(d) 35%
9. Branch Account under Debtor system is_______________
(a) Personal A/c
(b) Real Ac/c
(c) Nominal A/c
(d) Debtors A/c
10. Stock Reserve in relation to closing stock is shown as_______________
(a) Debit side of Branch A/c
(b) Credit side of Branch A/c
(c) Debit side of P & L A/c
(d) Credit side of P & L A/c
11. Under Stock Debtor system Branch Adjustment Account shows____________
(a) Net Profit
(b) Gross Profit
(c) Branch Stock
(d) Head Office Stock
12. Cash remitted to branch is debited to_______________
(a) Branch Account
(b) HO Account
(c) Nominal A/c
(d) Debtors A/c
13. If profit on sales is 25%,then profit on cost will be_______________
(a) 25%
(b) 20%
(c) 33.33%
(d) 45%
14. Under Debtor system, Normal Loss is______________
(a) Not recorded in Branch A/c
(b) Recorded in Branch A/c
(c) Recorded in H.O A/c
(d) Not Recorded in H.O A/c
15. Under Stock Debtor system branch adjustment A/c shows______________
(a) Gross Profit
(b) Gross Loss
(c) Gross Profit or Gross Loss
(d) Net Profit
16. Under Debtors system, insurance claim admitted and received is shown on________
(a) Credit side of Branch A/c
(b) Debit Side of Branch A/c
(c) Credit Side of H.O A/c
(d) Credit Side of H.OA/c
17. Under Stock Debtors system, Expenses are transferred to___________________
(a) Branch Account A/c
(b) Branch Adjustment A/c
(c) Branch P & L A/c
(d) Branch Debtors A/c
Module 4:- Fire Insurance Claim
1. Fire insurance provides cover for:
(a) Tangible assets
(b) Intangible assets
(c) Fictitious assets
(d) Business employees
2. The difference between standard turnover and actual turnover during the indemnity period
is :
(a) Short Sales
(b) Actual Sales
(c) Total Sales
(d) None of the above
3. Sock of goods destroyed by fire is 9,00,000, Stock of goods salvaged 1,00,000, value of
insurance policy 8,00,000, There is an average clause in the policy then the amount of claim
is :
(a) 9,00,000
(b) 8,00,000
(c) 7,20,000
(d) 7,00,000
4. For the year 2008,2009,2010 if the rate of gross profit were 15% , 20%, and 18%
respectively , then the rate of Average gross profit for the year 2011 will be:
(a) 15%
(b) 18%
(c) 17.67%
(d) 20%
5. Cost of machinery 60,000, Insurance Policy includes Average Clause 50,000, Goods saved
6,000, Amount of Claim will be:
(a) 45,000
(b) 60,000
(c) 50,000
(d) 20,000
6. Value of goods destroyed is 48,000, Goods saved 12,000, Amount of insurance policy was
40,000 which include average clause then amount of claim is:
(a) 32,000
(b) 40,000
(c) 48,000
(d) 12,000
7. Opening stock 13,500, Purchase 82,500, Sales 1,20,000 and stock salvaged 1,260, the rate
of gross profit 50% on cost then the stock destroyed by fire will be:
(a) 14,740
(b) 27,740
(c) 36,000
(d) 57,205
8. Fire insurance provides cover for _________.
(a). Tangible assets.
(b). Intangible assets.
(c ) Fictitious assets.
(d) Real assets
9. The average clause in a loss of profits policy protects by _______.
(a). Insured
(b). Insurer
(c ). Workers
(d). Owners
10. Fire insurance policy can be taken for _________.
(a). loss of stock.
(b). loss of profit.
(c ). life of a partner
(d) loss of stock or/and loss of profit
11. The stock which is rescued from fir is ______.
(a). scrap.
(b). defectives.
(c ). salvaged stock.
(d) . claim.
12. Closing stock on the date of fire is Rs. 50,000 and the stock salvaged is Rs. 23,000. The
claim is _____.
(a) . Rs. 23,000.
(b). Rs. 27,000.
(c ). Rs. 50,000.
(d) . Rs. 73,000.
13. Memorandum trading a/c is prepared to know the _______.
(a) . Claim
(b) Closing stock.
(c ). Gross profit.
(d). Purchase.
14. The period for which insurance policy is taken against the risk of fire is __________.
(a). accounting period.
(b) . calendar period.
(c) . indemnity period
(d). standard period.
15. Memorandum trading a/c is prepared for period from __________.
(a). 1st Jan. to 31st Dec.
(b). 1st Apr. to 31st Mar.
(c ). Opening date of accounting period to date of fire.
(d). Opening date of accounting period to closing date of accounting
16. In order to calculate value of closing stock, which a/c is to be prepared ____________
(a). P&L a/c.
(b). P&L appropriation a/c.
(c ). Memorandum trading a/c.
(d ). Memorandum P&L a/c.
17. The amount of insurance ………….. to be paid at regular intervals
(a). policy
(b). claim
(c). commission
(d) . premium
18. Net claim on under insurance is equal to Loss of stock x value of stock On the date of
fire_______
(a). Policy value
(b). Total value
(c). total sales
(d) Claim
ACHIEVERS COLLEGE
OF COMMERCE & MANAGEMENT (NIGHT COLLEGE), KALYAN
Class: FYBAF Subject: Auditing (Introduction and Planning) Sem: II
1.Introduction to Auditing
1. _________ means limitations which cannot be overcome and which are with the
subject since the inception or evolution of the subject.
Management limitation
Time constraints
Scope limitation
Inherent limitation
2. For agreed-upon procedures, auditor simply provides a report of factual findings,
_______is expressed
Absolute assurance
Negative assurance
Moderate assurance
No assurance
3. Compliance with the Standard of Auditing is the responsibility of
Management
Those charged with governance
Auditor
Audit committee
4. If the financial statements are prepared as per the financial reporting framework, the
auditor gives an opinion that the financial statements
Are true and correct
Are correct and fair
Give a true and fair view
Are reliable
5. The risk of fraud increases when
The working capital is high
The cash sales are high
The auditor remain the same
Management is in the hands of a single person
6. Which of the following statement is not correct about materiality?
Materiality provides a quantitative cut off point
Materiality is a matter of professional judgement
SA 320 deals with materiality
Auditor should consider materiality when drafting the audit report
7. State which of the following statement is false-
The detection of errors and frauds is no longer and Audit objective
An Audit does not guarantee that the accounts are free from frauds and errors
The auditor is not primarily responsible for all the fruits in the accounts audited by
him
The detection of errors and frauds is the primary or audit objective
8. Window dressing is most likely to be committed by whom?
Line employees of the company
Outside members of the company's board of directors
Company management
The companies auditor
9. An auditor discover that the company's book-keeper unintentionally made a mistake
in calculating the amount of the quarterly sales this is an example of
Employee fraud
An error
misappropriation of assets
A defalcation
10. If several employees collude to falsify documents, the chance a normal audit would
uncover such act is
very low
very high
Zero
Fifty – fifty
11. Preparation of the financial statements
Auditor is responsible
Management is responsible
Both are responsible
Neither are responsible
12. Comply with laws and regulations
Auditor is responsible
Management is responsible
Both are responsible
Neither are responsible
13. _________ is fraud that involves theft of an entity assets.
Manipulation of records
A secret Reserve
Misappropriation of assets
income smoothing
14. Audit means
recording business transaction
preparing the final accounts
examination of books, accounts, vouchers etc.
preparing final accounts
15. ____________is a systematic examination of the books and records or business
Auditing
Vouching
Verification
checking
16. Which of the following is least likely to uncover fraud?
external auditors
internal auditors
internal control
management
17. Secret reserve can be created by
public limited company only
banking companies only
private limited company only
cooperative societies
18. A financial audit is intended to give
Qualified Assurance
Absolute Assurance
Positive Assurance
Reasonable assurance
19. As per the council general guidelines issued by the institute of Chartered accountant
of India, if member express his opinion on financial statement in which his relative
has a substantial interest, he is ________.
Required to take utmost care in Auditing the financial statements
Required to accept the audit engagement by carefully reading the terms of
engagement
Required to withdraw later on if it is threat to his independence
Guilty of professional misconduct
20. As per ________ going concern is a fundamental accounting assumption.
SA 570
SA 200
AS 1
SA 706
21. There can be situation in which certain matters are covered both by a „Statement‟ and by a „Standards of Auditing‟. In such a situation, ________ prevails till the time the
relevant _______
Standards of Auditing, statement is authorized
Statement, Standards of Auditing becomes mandatory
Accounting Standards, statement is authorized
Guidance note, statement is authorized
22. Change in accounting estimate is __________.
Prior Period Item
Change in accounting policy
Extra-ordinary item
Ordinary item
2. Audit Planning, Procedure and Documentation
23. An entity acquires a right to use an underground cave for gas storage purposes for a
period of 50 years. The cave is filed with gas, but a substantial part of that gas will
only be used to keep the cave under pressure in order to able to get gas out of the
cave. It is possible to distinguish the gas that will be used to keep the cave under
pressure and the rest of the gas. What is the treatment the management should give for
the substantial part of gas that will be used to keep the cave under pressure?
Treatment as per AS 2
Treatment as per AS 10
Treatment as per 13
Such asset is not covered under any AS
24. The firm‟s ______ should assume ultimate responsibility for the firm‟s system of quality control.
Article Assistant
Managing partner
Sleeping partner
Employee
25. If the auditor is unable to draw reasonable assurance, he should either withdraw from
engagement if permitted by law or Disclaim his opinion is given in which Standard of
Auditing?
SA 500
SA 200
SA 705
SA 700
26. The auditor should plan his work to enable him to conduct an effective audit in
______manner.
a professional
a proper
a confident
an efficient and timely
27. Audit plan should be based on knowledge of the clients_________.
profits
Net worth
Business
Reputation
28. An audit programme may be
Statutory
Permanent
Fixed or flexible
standard
29. ________paper is the link between the client records and the auditors report.
News
Working
Loose
Ruled
30. Which of the following SA deals with audit planning ?
SA 610
SA300
SA 620
SA 230
31. Audit programme is prepared by
the client
the client and the auditor
the auditor and his assistant
the chief accountant
32. Current audit file relating to audit of a partnership firm will not contain.
Audit plan
Audit program
Partnership deed
Letter of confirmation
33. Calculating the gross profit as a percent of sales and comparing it with previous
periods is what type of audit method?
Inspection
Analytical procedure
Observation
Inquiry
34. When auditor use documents to support record transaction, the process is often called
Inquiry
Confirmation
Inspection
Observation
35. An example of an external document is
employees time reports
bank statement
purchase order for company purchase
carbon copies of cheques
36. An example of a document originating from and held by the entity being audited is a
confirmation
sales invoice
vendor invoice
bank reconciliation
37. If there is a conflict between the laws with which the auditee is subject to and
Standards of Auditing, the_____ shall prevails.
Notification from the central government
Law
Standard of Auditing
Guidance note
38. Comment on the following situation - CA. Pawan helped his brother in setting up his
brother‟s business from the knowledge of the business like customers, suppliers, technical experts, etc. obtained from the audit conducted by him.
This is legal in law
He should inform ICAI once
He should take permission from the company
This is violation of ethical standards of confidentiality
39. Professional judgment means a judgment taken by the auditor out of his ______ in an
audit situation.
Past experience
Relation with the management
Professional experience
Work experience
40. Sufficiency is the measure of the _____ of audit evidence.
Past experience
Relation with the management
Professional experience
Work experience
41. Appropriateness means _______ of audit evidence.
Quantity
Quality
Appropriateness
Sufficient
42. Whether sufficient appropriate audit evidence has been obtained to reduce audit risk
to an acceptable low level, and thereby enable the auditor to draw reasonable
conclusion on which to base the auditor‟s opinion, is a matter of________.
Audit guidelines
Professional judgment
Experience
Requirement from management
3. Auditing Techniques and Internal Audit
43. An auditor is required to determine the ________ of his audit procedures according to
the requirements of Standards of Auditing.
Conduct
Nature timing and extent
Limitation
Planning
44. In banks, the financial reporting framework means financial statements required in specific format and with ________for income recognition.
AS 9
Standards of Auditing
Central government
RBI guidelines
45. The audit firm should implement _________ policies to ensure all audits are
conducted in accordance with Audit and Assurance Standards. Detection Control
Quality control Management control
Internal control
46. Process of collecting and preparing working papers is known as __________.
Audit evidence
Planning an audit
Documentation Policies and procedures
47. The risk that, although the sample result does not support the auditor's assessment of
control risk, the actual compliance rate it would support such an assessment, is known
as-
Risk of over Reliance
Risk of Under Reliance
Risk of incorrect rejection
Risk of incorrect acceptance
48. the risk that, although me simple result supports Me conclusion that a recorded
account balance or class of transaction is materially misstated, in fact it is not
materially mis-stated is known as
Risk of incorrect rejection
Risk of over reliance
Risk of Under Reliance
Risk of incorrect acceptance
49. Tolerable error is the_________ error in the population that the auditor would be
willing to accept, and still conclude that the result from the sample has achieved the
audit objective.
Maximum
Minimum
Reasonable
Insignificant
50. Obtain an understanding of internal controls
Auditor is responsible
Management is responsible
Both are responsible
Neither are responsible
51. Internal control does not aim to achieve
Reliability of financial reporting
Efficiency and effectiveness of operation
Compliance with laws and regulations
Zero business risk
52. The responsibility for adopting sound accounting policies and maintaining adequate
internal control rest with the
Chief accountant
Company management
Financial statement auditor
companies internal audit department
53. Internal auditors are appointed by
Central Government
The management
Shareholders in Annual General Meeting
board of directors in a board meeting
54. Auditing standards __________use of internal audit reports by the statutory auditor.
Discourage
Prohibit
Require
Permit
55. _______ is the file containing the records and data that compromise the audit
documentation for a specific engagement.
Audit file Engagement file Working file
Client‟s file
56. Salary paid to Ranjita Rs 50,000 is debited to her account. It is an error of _________________.
Principle Commission
Omission Duplication
57. How many principles are listed in AASI which govern auditor's professional
obligation?
9 14
7
8
58. Prevention and detection of errors and frauds can be done by
Auditor
Accountant
Cashier
Management
59. A credit sales of Rs 20,000 is recorded in the purchase book is an error of
____________.
Omission
Commission Principle
Depreciation
60. Goods worth Rs 5,000 taken by the proprietor for personal use not recorded is an
error of_________________.
Omission Commission
Duplication
Principle
61. The standard deals with audit planning
AAS7
SA315 AAS9 AAS3
62. Ownership of working paper is with
Assistant
Auditor Client
Government
63. Audit programme is prepared by
The client
The client and auditor
The client and his assistant the chief accountant
64. Letter of engagement provided by
SA 210 AAS 3
AAS 8
AAS 9
65. Test checking is ___________
Checking the transactions which are tested
Checking the selected transaction Checking vouchers only checking cash memos only
66. Size of the samples depends on
Internal control system
Test checking
Routine checking Balance sheet audit
67. For vouching of which item the auditor is most likely to examine cost record.
Commission earned
credit sales Bad debts record
Sales of scrap
68. Request for goods by a customer is evidenced by
Customer order sales invoice
suppliers invoice
sales order
69. Which of the following assets is least likely subjected to lien?
