Quiz on Commerce with Answers

Quiz on Commerce with Answers

( Next GK Commerce Questions )

1. Preparation of Trial Balance helps, mainly, in–
(A) summarising business transactions
(B) verifying that ‘generally accepted accounting principles’ have been observed
(C) finalising the ‘sources and uses of funds’ statement
(D) locating errors, if any, in books of accounts.
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2. If opening stock = Rs. 2,45,000; purchases = Rs. 15,00,000; sales = Rs. 17,40,000 and rate of gross profit = 20% on cost of goods sold, then the closing stock would be at–
(A) Rs. 3,53,000 (B) Rs. 2,95,000
(C) Rs. 2,45,000 (D) Rs. 1,95,000
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3. The basis adopted for piecemeal distribution of cash among the partners should be such that amounts finally left unpaid are in the ration in which–
(A) capital stands on the date of dissolution
(B) profits and losses are shared
(C) capital balances stood at the beginning of partnership
(D) private assets appear on the date of dissolution
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4. The capital of a firm is Rs. 80,000. The reasonable return in the industry is 7•5 per cent. If the profit earned by the firm during past five years was Rs. 8,000; Rs. 9,000; Rs. 7,000; Rs. 8,500 and Rs. 10,000; then the super profit of the firm will be–
(A) Rs. 2,000 (B) Rs. 2,500
(C) Rs. 3,000 (D) Rs. 3,500
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5. ‘A’ and ‘B’ are partners in a firm sharing profits and losses in the ratio of 2– 3. ‘C’, a new partner is admitted for 1/4th share. ‘A’ and ‘B’, old partners share C’s profit into their profit sharing ratio. The new profit sharing ratio of ‘A’, ‘B’ and ‘C’ would be–
(A) 1– 1– 1 (B) 2– 3– 4
(C) 1– 2– 2 (D) 6– 9– 5
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6. The scope of audit in a partnership firm is governed by–
(A) partnership act (B) partnership deed
(C) agreement between partnership firm and auditor (D) number of partners of the firm
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7. If an auditor does something wrongfully in the performance of his duties resulting in financial loss to the company, he will be held guilty of–
(A) civil negligence (B) misfeasance
(C) criminal negligence (D) financial irregularity
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8. The First Standard Auditing Practice (SAP-1) is related to–
(A) objectives and scope of the audit of financial statements
(B) basic principles governing an audit
(C) documentation
(D) detecting fraud and error
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9. Which of the following relating to Audit Programme is not correct ?
(A) The auditor cannot defend himself on the basis of audit programme if there is a charge of negligence against him
(B) It is useful basis for planning the programme for the subsequent year
(C) It helps in the final review before the report is signed
(D) It simplifies the allocation of work amongst the audit staff
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10. The scope of ‘management audit’ is determined by the–
(A) Shareholders
(B) Board of Directors
(C) Comptroller and Auditor-General (C & AG)
(D) Comptroller and Auditor-General in consultation with the Central Government
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11. Which one of the following traits describes properly organic or behavioural structure of an organisation ?
(A) Wider spans of control (B) More centralisation
(C) Higher degree of specialization (D) Taller hierarchy
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12. Which among the following is the most popular approach for accomplishing the results ?
(A) Management by exception (B) Reward system
(C) Management by objectives (D) Mentor system
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13. A systematic and orderly process of determining the worth of a job in relation to other jobs is known as–
(A) job analysis (B) job evaluation
(C) job specification (D) job description
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14. Which one of the following factors does not influence wage and salary structure ?
(A) Demand and supply (B) Cost of living
(C) Job rotation (D) Job requirements
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15. Which among the following is a direct advantage of incentive compensation ?
(A) Mutual co-operation among the workers (B) Decrease in absenteeism
(C) Increase in productivity (D) Better industrial relations
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16. Consistency with reference to application of accounting principles refers to the fact that–
(A) companies in the same industry use identical accounting procedures and methods
(B) income and assets have not been overstated
(C) accounting methods and procedures used have been consistently applied from year to year.
(D) all the methods and procedures have been utilised.
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17. Call option is–
(A) A contract to buy a certain number of shares at a stated price within a specified period of time
(B) A contract to sell a certain number of shares at a stated price within a specified period of time
(C) the option of the issuing company to demand the shareholders to pay for the partly paid shares
(D) the option available to the convertible debenture holders to demand equity shares in conversion of debentures
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18. An audit in which the auditor examines the financial statements of an enterprise to express an opinion as to whether or not they reflect a true and fair view of its state of affairs and working results is known as–
(A) Management audit (B) Cost audit
(C) Financial audit (D) Periodical audit
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19. Is management by exception, one of the important principles of control ?
(A) Yes; because only the unusual deviations from standards should be brought to the notice of the management
(B) No; because less significant deviations and the actual performance according to the standards are not brought to the notice of the management
(C) Yes; because exception principle saves time of the subordinate staff
(D) No; because the manager can attend to operative decisions, and the strategic problems can be left to the technocrats
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20. Job evaluation is used for–
(A) study of progress of production (B) study of job composition
(C) determining wage rate differentials (D) rating the merit of an employee
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( Next GK Commerce Questions Set 33 )