COMPLETE REVISION- PAPER 2 MCQ SERIES - Oliveboard

SEBI Grade A 2020

Mega Marathon

Coverage:Revision-Part 1

100 MOST QUESTIONS

COMPLETE REVISION- PAPER 2MCQ SERIES

https://www.oliveboard.in/bank-exams/?ref=pdf

LETS BEGIN !

MANAGEMENT

Q.1)Which of the following thinker is related with the idea of ‘Employees are machines, and their

maintenance is necessary’?(1M)

A) Robert Owen

B) Charles Babbage

C) F W Taylor

D) Elton Mayo

E) None of the above

Practice Questions

Question No.1

Answer: Option A

Q.2) Which of the following managerial thinker is considered as father of Human Relations Approach?(1M)

A) F W Taylor.

B) Elton Mayo

C) McGregor

D) Keith Davis


Practice Questions

Question No.2

Answer: Option B

Q.3) Modern Theories of Management focus on which of the following factors?(2 M)

1. Complexity of the organisations

2. Man/Employee

3. Technique /Efficiency

A) 1 and 2

B) 2 and 3

C) 1 and 3

D) All of the above


Practice Questions

Question No.3

Answer: Option D

Q.4) Creation of unique products will fall under which of the following types of business strategy?(2 M)

A) Cost-Leadership Strategy

B) Focus Strategy

C) Differentiation Strategy

D) A and B

E) B and C

Practice Questions

Question No.4

Answer: Option C

Q.5) Stuart Pugh is related with the concept of Decision Matrix. It is based on which of the following? (2 M)

A) Views of the experts collected by questionnaire’s

B) Decision taken after extensive discussions

C) Decisions based on the costs and the benefits of a choice

D) Ranking the alternatives before decision


Practice Questions

Question No.5

Answer: Option D

Q.6) Which of the following thinkers proposed the concept of ’Bounded Rationality’?(1M)

A) F W Taylor

B) Weber

C) Herbert Simon

D) Chestner Barnard


Practice Questions

Question No.6

Answer: Option C

Q.7) If span of control in an organisation is 7,it results in which of the following type organisational

structure ?(2 M)

A) Flat Organization

B) Vertical Organization

C) Matrix Organization

D) A and B


Practice Questions

Question No.7

Answer: Option A

Q.8) The concept of Boundaryless organisation is given by which of the following thinker?(1M)

A) Jack Welch

B) Henry Fayol

C) Henry Mintzberg

D) Tom Peters


Practice Questions

Question No.8

Answer: Option A

Q.9) Which of the following statements regarding Human Resource Development is correct?(2 M)

A) HRD is a service function responding to the demands of the organisation.

B) HRD is the concern of all the managers in the organisation.

C) It considers salary and other economic benefits as the motivator.

D) A and C


Practice Questions

Question No.9

Answer: Option B

10) Collective Bargaining is a process of negotiation between employers and group of employees. Which of

the following bargaining is the Zero-sum negotiation?(1M)

A) Composite Bargaining

B) Integrative Bargaining

C) Productive Bargaining

D) Distributive Bargaining


Practice Questions

Question No.10

Answer: Option D

FINANCE

Q.11) Which of the following is a short-term money market instrument with a min. amount of Rs 1

Lakh?(1M)

A) Treasury Bills

B) Cash Management Bills

C) Commercial Bill

D) Commercial Paper.

E) Certificate of Deposit

Practice Questions

Question No.11

Answer: Option D

Q.12) Fund raising in primary market includes which of the following ways?(1M)

A) Public issue by prospectus

B) Private placement

C) Right issues

D) Preferential issues

E) All of the above

Practice Questions

Question No.12

Answer: Option E

Q.13) Which of the following bond is also called as ‘consol’ or ‘perp’?(1M)

A) Perpetual Bond

B) Corporate Bond

C) Junk Bond

D) Gilt-edged securities

E) Inflation Indexed Bond

Practice Questions

Question No.13

Answer: Option A

Q.14) Which of the following is correct with respect to Gordon Growth Model?(1M)

A) Single Period Valuation

B) Multi Period Valuation

C) Dividend growing at constant rate for infinite years

D) Dividend growing at constant rate for N years

E) Zero Growth Model

Practice Questions

Question No.14

Answer: Option C

Q.15) Which of the following derivatives are traded outside the exchanges?(1M)

A)Forwards

B)Futures

C)Options

D)A and C

E)B and C

Practice Questions

Question No.15

Answer: Option D

Q.16) Which of the following tool measures the sensitivity of the option price based on an other

tool/index?(1M)

A)Beta

B)Delta

C)Gamma

D)Theta

E)None of the above

Practice Questions

Question No.16

Answer: Option C

Q.17) Which of the following is relatively newly established regulatory body in India?(1M)

A) SEBI

B) RBI

C) IRDAI

D) FSDC

E) PFRDA

Practice Questions

Question No.17

Answer: Option D

Q.18) ’ FV=PV(1+r)n ‘ is the formula based on the compounding technique of adjusting time value of

money. Which of the following refers to Future Value Interest Factor(FVIF) in the above equation?(1M)

A) r

B) (1+r)

C) n

D) (1+r)n

E)None of the above

Practice Questions

Question No.18

Answer: Option D

Q.19) Which of the following are methods of alternate sources of lending?(1M)

A)Peer to Peer Lending

B)NBFCs

C)Bitcoins

D)Private Placement

E) All of the above

Practice Questions

Question No.19

Answer: Option E

Q.20) Which of the following bills allows Government to withdraw from Consolidated Fund of

India(CFI)?(1M)

A)Money Bill

B) Finance Bill(I)

C) Finance Bill(II)

D) Appropriation Bill

E) Vote on account

Practice Questions

Question No.20

Answer: Option D

COMPANIES ACT 2013

Q.21) Which of the following with respect to Companies Act ,2013 is incorrect?

A) Minimum number of 7 persons are required to form a public company.

B) The maximum prescribed limit of number of directors in company is 15.

C) The act limits a person to be director in 10 companies

D A and B

E) All of the above

Practice Questions

Question No.21

Answer: Option C

Q.22) Chapter III of the companies act deals with the ?(1M)

A) Incorporation of a Company

B) Share capital and Debenture

C) Declaration and Payment of Dividend

D) Prospectus and allotment of securities


Practice Questions

Question No.22

Answer: Option D

Q.23) A company issuing a red herring prospectus shall file it with the Registrar at least _________to the

opening of the subscription list and the offer?(1M)

A) 15 days prior

B) 3 days prior

C) 3 months prior

D) 15 days later

E) 3 days later

Practice Questions

Question No.23

Answer: Option B

Q.24) Which of the following statement is correct with respect to voting rights in companies under

Chapter IV?( 1M)

A) Every member of a public and private company has a right to vote.

B) In a public company, voting rights on a poll is proportional to the equity paid up capital share in the

company

C) A and B

D) Preference shareholders are given higher voting rights on all resolutions of the company

E) B and C

Practice Questions

Question No.24

Answer: Option B

Q.25) Section 62 deals with further issue of share capital in companies. Which of the companies are

mandated to comply to Section 62?(1M)

A) Public Companies

B) Private Companies

C) Unlisted Companies

D) Listed Companies

E) All of the above

Practice Questions

Question No.25

Answer: Option E

Q.26) Every public company has to appoint at least one woman director if it has paid–up share capital

____________?(2M)

A) Greater than 100 Crores

B) Less than 300 Crores

C) Greater than 200 Crores

D) Less than 500 Crores

E) Greater than 300 Crores

Practice Questions

Question No.26

Answer: Option A

Q.27) Which of the following statements is correct w.r.t to appointment of first auditor in a company?(1M)

A) Appointed by the CAG with in 60 days in case of government company.

B) Appointed by the board with in 30 days in case of a company other than government company

C) There is no power for the board of a government company to appoint a first auditor.

D) A and B

E) All of the above

Practice Questions

Question No.27

Answer: Option D

Q.28) Which of the following person can be appointed as an independent director according to Companies

Act,2013?(2M)

A) A director of an Non governmental company that receives more than 15% of receipts from the company

B) Holds together with the relatives 2% of voting rights in the company

C) A director of an Non governmental company that receives more than 25% of receipts from the company

D) A and B

E) B and C

Practice Questions

Question No.28

Answer: Option A

Q.29) If the Chartered accountant, company secretary or Cost Accountant does not comply with relevant

provisions of the Companies Act, they are punishable with a fine of ___ ?(1M)

A) A minimum of 3 Lakh

B) A maximum of 15 Lakh

C) A minimum of 4 Lakh

D) A maximum of 25 Lakh

E) A minimum of 5 Lakh

Practice Questions

Question No.29

Answer: Option D

Q.30) Which of the following is incorrect w.r.t to quorum of board meetings?(1M)

A) One third of the total strength or 2 directors which ever is higher

B) One third of the total strength or 2 directors which ever is Lower

C) It doesn’t include the participation by a director through video conferencing or other audio visual means.

D) A and C

E) B and C

Practice Questions

Question No.30

Answer: Option E

Q.1)Which of the following appraisal focuses on employee's future performance rather than past one?(1M)

A) Psychological Appraisal

B) Potential Appraisal

C) 360 degrees Appraisal

D) Behaviorally Anchored Rating Scale


Practice Questions

Question No.1

Answer: Option A

Q.2) Which of the following is not considered as the deficiency needs according to the Maslow’s Needs

theory?(1M)

A) Esteem Needs

B) Self Actualisation Needs

C) Social Needs

D) A and B

E) All of the above

Practice Questions

Question No.2

Answer: Option B

Q.3) Which of the following theory believes that ‘if a higher level need aggravates an individual may revert

to increase the satisfaction of a lower order need’?(2 M)

A) Maslow Theory of Needs

B) 2 Factor Theory

C) Theory Y

D) ERG Theory


Practice Questions

Question No.3

Answer: Option D

Q.4) According to Self Efficacy Theory, Motivational thinkers use which of the following technique to self-

efficacy?(2 M)

A) Enactive Mastery

B) Vicarious Modeling

C) Verbal Persuasion

D) A ,B and C


Practice Questions

Question No.4

Answer: Option C

Q.5) To have a high Motivation Potential Score(MPS),which of the following factors need to be high? (2 M)

A) Autonomy

B) Feedback

C) Skill Variety

D) A and B

E) B and C

Practice Questions

Question No.5

Answer: Option D

Q.6)’Management of Exception’ is a characteristic of which of the following leader?(1M)

A) Transformational Leader

B) Charismatic Leader

C) Transactional Leader

D) Servant Leader


Practice Questions

Question No.6

Answer: Option C

Q.7) Control is the process through which the managers assure that the actual activities confirm to the

actual activities. Which of the following is not a modern technique of control?(2 M)

A) Breakeven Analysis

B) Zero Based Budgeting

C) PERT

D) CPM


Practice Questions

Question No.7

Answer: Option A

Q.8) If a new insurance company wants to launch insurance offers like Home loan, Education Loans ,Vehicle

loans, Which of the following departmentation suits?(1M)

A) Functional

B) Matrix

C) Customer

D) Product

E) Geography

Practice Questions

Question No.8

Answer: Option C

Q.9) Which of the following is called as functional/process approach of management?(2 M)

A) Scientific Management.

B) Administrative Theory of Management

C) Bureaucratic Management.

D) B and C


Practice Questions

Question No.9

Answer: Option B

10) Into how many types the leadership styles are categorised according to Rensis Likert?(1M)

A) 2

B) 3

C) 4

D) 5


Practice Questions

Question No.10

Answer: Option C

FINANCE

Q.11) Vote on account is a special provision by which the govt. obtains parliaments approval for funds

sufficient to incur expenditure for a part of the year. The sum under the vote on account _____ of the total

expenditure for the year?(1M)

A) 1/3rd

B) 1/4th

C) 1/5th

D) 1/6th

E) 1/2

Practice Questions

Question No.11

Answer: Option D

Q.12) The part of fiscal deficit that can be covered by borrowing from RBI is reflected in?(1M)

A) Primary Deficit

B) Revenue Deficit

C) Effective Revenue Deficit

D) Monetized Deficit


Practice Questions

Question No.12

Answer: Option D

Q.13) Which of the following statements facilitate a closer integration between FRBM and Budget?(1M)

A) Fiscal Policy Strategy Statement

B) Macroeconomic Framework Policy Statement

C) Medium Term Expenditure Framework

D) A and B

E) B and C

Practice Questions

Question No.13

Answer: Option C

Q.14) After the 15th Finance Commission, which of the new criteria for devolution of funds to the states

has been evolved ?(1M)

A) Population

B) Income distance

C) Area

D) Demographic Performance


Practice Questions

Question No.14

Answer: Option D

Q.15) For a valid meeting of GST Council, what is the total number of persons that should be present at

the meeting(quorum)?(1M)

A)1/2 of total members

B)1/3 of total members

C)1/4 of total members

D)3/4 of total members

E)None of the above

Practice Questions

Question No.15

Answer: Option A

Q.16) Which of the following organisation publishes the prices/yield of Government securities in

India?(1M)

A) Fixed Income Money Markets and Derivatives Association (FIMMDA)

B) Foreign Exchange Dealers Association of India

C) Financial Benchmark India Pvt. Ltd. (FBIL)

D) Reserve Bank of India

E)None of the above

Practice Questions

Question No.16

Answer: Option C

Q.17) SARFAESI Act, which assists banks and financial institutions in auction properties of default

customers in an easy and efficient manner, came into existence in which of the following years?(1M)

A) 1992

B) 1999

C) 2002

D) 2005


Practice Questions

Question No.17

Answer: Option C

Q.18) Perpetual Bonds face which of the following types of risks?(1M)

A) Default Risk

B) Inflation Risk

C) Repayment Date Risk

D) A and C

E) All of the above

Practice Questions

Question No.18

Answer: Option E

Q.19) The Index of Industrial Production (IIP) is an indicator that measures the changes in the volume of

production of industrial products during a given period. The base for calculation of IIP is _____?(1M)

A)2001-02

B)2011-12

C)2012-13

D)2016-17


Practice Questions

Question No.19

Answer: Option B

Q.20) When price levels are reinforced by the price level increase in the recent past ,it is referred as

_________?(1M)

A)Inflationary Gap

B) Deflationary Gap

C) Inflationary Spiral

D) Deflationary Spiral


Practice Questions

Question No.20

Answer: Option D

COMPANIES ACT 2013

Q.21) Section 49 of companies act states that Every Company shall have at least one Director that has

stayed in India for a total period of not less than _____ in the previous calendar year?(1M)

A) 120

B) 152

C) 182

D) 275

E) 365

Practice Questions

Question No.21

Answer: Option C

Q.22) According to Section 151 of the Companies Act,2013, every listed company may have one director

elected by small shareholder. Who is considered as small shareholder?(2M)

A) Holding shares of nominal value of not more than Rs.10,000

B) Holding shares of nominal value of not more than Rs.20,000

C) Holding shares of nominal value of not more than Rs.50,000

D) Holding shares of nominal value of not more than Rs.70,000

E) Holding shares of nominal value of not more than Rs.1,00,000

Practice Questions

Question No.22

Answer: Option B

Q.23) Every Individual is Appointed as the Director of a company shall make application electronically

in________ to the central government?(1M)

A) Form DIR-3

B) Form DIR-4

C) Form DIR-5

D) Form DIR-2


Practice Questions

Question No.23

Answer: Option A

Q.24) For which of the following the constitution of audit committee is must?( 1M)

A) Public companies with paid-up capital of Rs.10 Cr.

B) Public companies with Turnover of Rs.100 Cr

C) Public companies having aggregate loans, debentures and deposits exceeding Rs.50 Cr

D) A and B

E) All of the above

Practice Questions

Question No.24

Answer: Option E

Q.25) Which of the following is correct w.r.t to composition of audit committee?(1M)

A) Should have min. of 2 directors

B)>=2/3rd of its composition should be independent directors.

C) Should have min. of 3 directors

D) B and C

E) A and B

Practice Questions

Question No.25

Answer: Option D

Q.26) Which of the following is correct w.r.t to Nomination and Remuneration committee?(2M)

A) Not less than ½ of the members are independent directors

B) Not less than 2/3rd of the members are independent directors

C) Not greater than ½ of the members are independent directors

D) Not greater than 2/3rd of the members are independent directors


Practice Questions

Question No.26

Answer: Option A

Q.27) Which of the following person can become a president of National Company Law

Tribunal(NCLT)?(1M)

A) Who was a judge of High Court For 5 years.

B) Who was a chief justice of High Court For 5 years

C) Who was a judge of Supreme Court For 5 years.

D) Who was a chief justice of Supreme Court For 5 years

E) All of the above

Practice Questions

Question No.27

Answer: Option A

Q.28) Any person aggrieved by the appellate tribunal may file an appeal to the supreme court within

_______ from the date of receipt of order of appellate tribunal?(2M)

A) 30 days

B) 45 days

C) 60 days

D) 90 days


Practice Questions

Question No.28

Answer: Option C

Q.29) Which of the following conditions are taken into account before a company declares dividend?(2M)

A) A company might provide depreciation for all is depreciable assets.

B) A company might transfer some part to its reserves

C) A company can set off previous year losses and depreciation

D) A and B

E) All of the above

Practice Questions

Question No.29

Answer: Option E

Q.30) Transfer unpaid dividend amount to IEPF(Investor Education and Provident Fund) after the expiry of

_______from the date of transfer to unpaid dividend a/c?(1M)

A) 4 years

B) 5 years

C) 6 years

D) 7 years


Practice Questions

Question No.30

Answer: Option D

SEBI Grade A: Costing Revision

COST resources sacrificed

COSTING breakup of financial data

COST ACCOUNTING classification, accumulation, assignment and control of costs


1. The basic objective of cost accounting is ________

a) tax compliance

b) financial audit

c) cost ascertainment

d) profit analysis

e) All the above


Accounting

Financial Accounting

Recording of financial transactions

Summarising

Reporting of financial statements

external users

Cost Accounting

Recording of costs

Analysis of costs

Preparation of cost statements

internal users

Management Accounting

Umbrella concept

Financial & other information

Preparation of statement for managerial decisions

Internal users


2. Opportunity cost is _________

a) An irrelevant cost

b) An actual cost

c) A management cost

d) A Notional cost

e) A balance sheet cost


3. Brick making industry uses

a) Operating costing

b) Service costing

c) Contract costing

d) Job costing

e) Single costing


3. Brick making industry uses

a) Operating costing

b) Service costing

c) Contract costing

d) Job costing

e) Single costing

➢ Single costing application: brick-making, collieries, flour mills, cement manufacturing, bi-cycle assembly➢ Process costing application: textile industries, chemical industries, oil refineries, soap manufacturing, paper manufacturing


4. Which of the below costing method is suitable where the production is not continuous?

a) Process costing

b) Service costing

c) Contract costing

d) Job costing

e) Single costing


4. Which of the below costing method is suitable where the production is not continuous?

a) Process costing

b) Service costing

c) Contract costing

d) Job costing

e) Single costing

➢ Specific order costing – ‘make to order’ or ‘customisation’➢ Separate Job Cost Sheet for each job➢ direct costs are charged to the job directly➢ overheads are charged to the job on some suitable basis➢ Application: printing shops, accounting firms, equipment companies, construction companies


5. The cost unit in batch costing is a:

a) Process

b) Batch

c) Product

d) Machine

e) All the above


5. The cost unit in batch costing is a:

a) Process

b) Batch

c) Product

d) Machine

e) All the above

➢ identical products➢ Each batch is treated a job and costs are calculated for total batch➢ Cost per unit= Total Batch Cost ÷ Total Units in Batch➢ Application: readymade garment, toys, tyre & tube


6. The cost of sub-contract is:

a) Included under direct material

b) Included under direct labour

c) Included under direct expenses

d) Included under overheads

e) Excluded from the contract


6. The cost of sub-contract is:

a) Included under direct material

b) Included under direct labour

c) Included under direct expenses

d) Included under overheads

e) Excluded from the contract

➢ Contract a/c debited with all the contract related expenses➢ Escalation clause➢ Architects’ certificate➢ Retention money➢ Profit on incomplete contracts

work certified transfer to profit and loss account balance

less than 25% nil nil

25% - 50% Profit =1/3 x Notional Profit x {Cash received / Work certified} reserve

50%-90% Profit =2/3 x Notional Profit x {Cash received / Work certified} reserve

more than 90% Profit=Estimated total profit x {Work certified / Contract price} nil

loss entire amount nil

profits


7. Which of the below statement is false with regard to process costing?

a) Production is continuous

b) The output of the last process is transferred to finished stock

c) The cost of normal spoilage is charged to costing P&L a/c

d) Semi finished goods are expressed in terms of equivalent units

e) None of the above


7. Which of the below statement is false with regard to process costing?

a) Production is continuous

b) The output of the last process is transferred to finished stock

c) The cost of normal spoilage is charged to costing P&L a/c

d) Semi finished goods are expressed in terms of equivalent units


Sugar Manufacturing Industry


8. Boiler house costing is an example of _______ costing

a) Service costing

b) Process costing

c) Unit costing

d) Batch costing

e) Job costing


8. Boiler house costing is an example of :

a) Service costing

b) Process costing

c) Unit costing

d) Batch costing

e) Job costing

➢ APPLICATION : Inter-departmental services - boiler-house , transport, hospital, canteen➢ Composition of costs: (i) Standing charges; (ii) Running charges; (iii) Maintenance charges➢ Number of vehicles x capacity x distance travelled x days x passengers (or weight carried)


9. Application/s of Standard Costing is/are:

a) Planning

b) Controlling

c) Performance evaluation

d) Decision making

e) All the above


Standard Costing & Variance Analysis

Material Cost Variance

Material Usage

Variance

Material Mix

Variance

Material Yield

Variance

Material Price

variance

Labour Cost Variance

Labour Time/ Efficiency Variance

Labour Mix Variance

Labour Idle Time

Variance

Labour Yield Variance

Labour Rate Variance

Overhead Cost Variance

Variable O.H. cost Variance

Variable O.H. Expenditure

Variance

Variable O.H. Efficiency Variance

Fixed O.H. cost

variance

Expenditure Variance

Volume variance

Efficiency Variance

Capacity Variance

Calendar (idle time) variance


10. How are fixed costs treated in Marginal costing?

a) Included in product costs

b) Charged to the whole revenue

c) Not accounted

d) Charged to service departments



10. How are fixed costs treated in Marginal costing?

a) Included in product costs

b) Charged to the whole revenue

c) Not accounted

d) Charged to service departments


➢ Decision making technique➢ Break-even analysis : sales = total expenses➢ S- V= F + P➢ Profit-volume ratio : The rate at which profit increases with the increase in volume


➢ Applications of Marginal costing: ➢ 1. Profit planning➢ 2. Evaluation of Performance➢ 3. Make or Buy Decisions➢ 4. Closure of a Department or Discontinuance of a Product➢ 5. Maintaining a Desired Level of Profit➢ 6. Offering Quotations ➢ 7. Accepting an Offer or Exporting below Normal Price ➢ 8. Alternative Use of Production Facilities ➢ 9. Problem of Key Factor ➢ 10. Selection of a Suitable Product Mix

SEBI Grade A: Economics Revision

1. Contraction of demand is the result of:

a) decrease in the number of consumers

b) increase in the price of the good concerned

c) increase in the prices of other goods

d) decrease in the income of purchasers

e) Decrease in the prices of other goods


1. Contraction of demand is the result of:

a) decrease in the number of consumers

b) increase in the price of the good concerned

c) increase in the prices of other goods

d) decrease in the income of purchasers

e) Decrease in the prices of other goods

➢ Desire + purchasing power + willingness to buy = Demand

The Law of Demand

Chapter: Theory of Demand & Supply

Ram’s Demand Schedule for apples

Price per kg of apples Qty demanded (kgs)

10 6000

20 5000

30 4000

40 3000

50 2000

60 1000

Individual Demand Schedule Demand Curve

The Law of Demand


PRICE DEMAND

PRICE DEMAND

The LAW of DEMAND

Inverse relationship

Condition: Other things are constant

Dx = f [Px]

The Law of Demand


Exceptions to the Law of Demand

1. Conspicuous goods 2. Giffen goods 3. Conspicuous necessities

4. Future expectations about prices

Ex.: Festival season

5. Necessities

Law of Supply


Krishna Ltd.’s Supply Schedule for Mangoes

Price per kg of Mangoes

Quantity Supplied (kgs)

10 1000

20 2000

30 3000

40 4000

50 5000

60 6000

Individual Supply Schedule

Supply Curve

Law of Supply


The LAW of SUPPLY

Condition: Other things are constant


2. The second glass of lemonade gives lesser satisfaction to a thirsty boy. This is a clear case of:

a) Law of demand

b) Law of diminishing returns

c) Law of supply

d) Law of diminishing utility

e) Law of variable proportions

Law of Diminishing Marginal Utility

Chapter: The concept of Utility

Quantity consumed Total Utility Marginal Utility

0 scoops 0 utils 0

1 scoop 7 utils 7

2 scoops 12 utils 5

3 scoops 15 utils 3

4 scoops 16 utils 1

5 scoops 15 utils -1

6 scoops 12 utils -3

Sushma's Ice-cream Consumption


3. Which of the following is a property of an indifference curve?

a) Indifference curves slope downward to the right

b) Indifference curves are always convex to the origin

c) Indifference curves can never intersect each other

d) A higher indifference curve represents a higher level of satisfaction

e) All the above


Indifference Curve


4. In the Law of Variable Proportions:

a) Only one factor input is variable

b) Two factor inputs are variable

c) All the factor inputs are variable

d) Only output is variable



Units

of

Labour

Total

Product

(TP)

Average

Product

(AP)

Marginal

Product

(MP)

Stage

1 100 100.0 100

2 210 105.0 110

3 330 110.0 120

4 440 110.0 110

5 520 104.0 80

6 600 100.0 80

7 670 95.7 70

8 720 90.0 50

9 750 83.3 30

10 750 75.0 -

11 740 67.3 -10 3rd Stage

1st Stage

2nd Stage


Units of

Capital (K)

Units of

Labour (L)

Total of

Inputs

(A+B)

Marginal

Increase in Input

(Cn - Cn-1)Total

Output

Marginal

Increase in

Output

(En - En-1)

% of

change

in

Inputs

% of change

in Output

Returns to

Scale

Column A B C D E F G H I

20 150 170 - 3,000

40 300 340 170 7,500 4,500 100% 150% Increasing

60 450 510 170 12,000 4,500 50% 60% Increasing

80 600 680 170 16,000 4,000 33% 33% Constant

100 750 850 170 18,000 2,000 25% 13% Decreasing


5. ____________is a measure of the market value of all final economic goods and services, gross

of depreciation

a) NNP

b) GNP

c) GDP

d) NDP

e) PPP


National Income

Money value

Final goods & services

Produced in an

economy

In an accounting

year

Price x Quantity

Output value (-) intermediary goods

value

April-March

Geographical boundaries

GDP @ MP

National Income CONCEPTS

Chapter: National Income-Concepts & Measurements

National Income Concepts

Market Price

GDP

NDP

GNP

NNP

Factor cost

GDP

NDP

GNP

NNP

Per capita Income Personal IncomePersonal

Disposable Income


Concepts of National Income

Market Price Factor CostNet Taxes

Gross Net

Domestic Product National ProductDomestic Product National Product

Net Factor Income from abroad

Net Factor Income from abroad

Depreciation

Gross Net

Depreciation

Gross Net

Depreciation

Gross Net

Depreciation


6. Which of the following is not a characteristic of a competitive market?

a) There are many buyers and sellers in the market

b) The goods offered for sales are largely the same

c) Firms can freely enter or exit the market

d) Firms generate small but positive supernormal profits in the long run

e) There is perfect knowledge of the market condition


Competition

Perfect

Imperfect

Monopoly

Monopolistic competition

Oligopoly

Duopoly


Homogenous products

Identical price

Perfect knowledge

No entry & exit restrictions

Price-takers

Perfect Competition


7. The demand curve of a monopoly firm will be __________________

a) Upward sloping

b) Downward sloping

c) Horizontal

d) Vertical

e) Parallel to both X & Y axis


SupplyPrice

Downward sloping demand curve


8. The premises on which the Classical Theory of Income and employment is developed is:

a) Full employment

b) Wage price flexibility

c) Quantity Theory of Money

d) Say’s Law of Market

e) All the above


9. Keynesian Theory of Income & Employment emphasised on:

a) Government intervention

b) Market Mechanism

c) Long-run economic stability

d) Full employment

e) All the above


9. Keynesian Theory of Income & Employment emphasised on:

a) Government intervention

b) Market Mechanism

c) Long-run economic stability

d) Full employment

e) All the above

➢ Effective demand ➔ aggregate demand = aggregate supply➢ Marginal Efficiency of Capital


10. Which of the below statements is true as per Keynes Law of Consumption?

a) Consumption & Income increase in the same proportion

b) Consumption increases less than proportionately to income

c) Income increases less than proportionately to income

d) Income & consumption have no relationship



10. Which of the below statements is true as per Keynes Law of Consumption?

a) Consumption & Income increase in the same proportion

b) Consumption increases less than proportionately to income

c) Income increases less than proportionately to income

d) Income & consumption have no relationship


Income Consumption Savings

(Y) (C) S=Y-C

0 20 -20

60 70 -10

120 120 0

180 170 10

240 220 20

300 270 30

360 320 40

(Rs.in crores)

Propositions

SEBI Grade A: Commerce & Accountancy Revision

1. Accounting Information System consists of:

a) People, procedures and instructions

b) Data & software

c) information technology infrastructure

d) internal controls

e) All the above

1. Accounting Information System consists of:

a) People, procedures and instructions

b) Data & software

c) information technology infrastructure

d) internal controls

e) All the above

➢ AIS People : system users, departments➢ Procedures and Instructions: documentation and training➢ AIS Data: storage & retrieval of MIS reports➢ Software: SAP, Tally➢ Infrastructure: hardware devices➢ internal controls: security measures - passwords & biometric identification


2. Accounting standards require which of the following information to be covered in the financial

statements?

a) recognition

b) measurement

c) presentation

d) disclosure

e) All the above


3. As per AS-2, inventories should be measured at:

a) Cost price

b) Net sales value

c) Standard value

d) Whichever is lower of (a) & (b) above

e) Whichever is higher of (a) & (b) above


3. As per AS-2, inventories should be measured at:

a) Cost price

b) Net sales value

c) Standard value

d) Whichever is lower of (a) & (b) above

e) Whichever is higher of (a) & (b) above

➢ Concept of conservatism➢ Non-applicability: construction contracts, work in progress, financial instruments held as

stock in trade➢ Costs of Purchase


4. The cost of an item of property, plant and equipment should be recognized as an asset only if:

a) The future economic benefits are expected out of it

b) the cost of the item can be measured reliably

c) Both the above

d) Its purchase price is lesser than the sales value

e) It is expected to be sold in the near future


4. The cost of an item of property, plant and equipment should be recognized as an asset only if:

a) The future economic benefits are expected out of it

b) the cost of the item can be measured reliably

c) Both the above

d) Its purchase price is lesser than the sales value

e) It is expected to be sold in the near future


➢ does not apply to biological assets related to agricultural activity other than bearer plants, wasting assets

➢ Costs of Purchase➢ Depreciation➢ Disclosure requirements

5. AS 11 should be applied in case of:

a) accounting for transactions in foreign currencies

b) translating the financial statements of foreign operations

c) Non monetary transactions

d) All the above

e) Only (a) & (b) above


6. Proportionate completion method is used to comply with the provisions of:

a) AS-11

b) AS-9

c) AS-10

d) AS-2

e) AS-1


6. Proportionate completion method is used to comply with the provisions of:

a) AS-11

b) AS-9

c) AS-10

d) AS-2

e) AS-1


➢ Revenue recognition emphasizes on the timing of recognition of revenue in the statement of profit and loss of an enterprise

➢ Accrual concept➢ Sale of Goods - transfer of the significant risks and rewards in ownership of the goods➢ Rendering of Services: Proportionate Completion Method; Completed Service Contract

Method

7. Which of the below are the disclosure requirement/s of AS-13?

a) Carrying amount of investments Balance sheet

b) interest, dividends received on investments

c) profits and losses on disposal of investments

d) Advance Taxes Paid on interest on investments

e) All the above


7. Which of the below are the disclosure requirement/s of AS-13?

a) Carrying amount of investments Balance sheet

b) interest, dividends received on investments

c) profits and losses on disposal of investments

d) Advance Taxes Paid on interest on investments

e) All the above


➢ Long term-short term investments

8. Which among these is a cash outflow from investing activity?

a) Dividend paid

b) TDS on interest income earned on investments made

c) TDS on interest earned on advance given to suppliers

d) Investment made in subsidiary company

e) Insurance claim received for loss of fixed asset by fire


9. Which among the below is to be added back to calculate the ‘Funds from Operations’?

a) Depreciation on Fixed Assets

b) Tax Provision

c) Transfer to Reserve

d) Losses from Other Non-Operating Incomes

e) All the above


10. Which of the below items is not a part of Quick Assets?

a) Investments

b) Inventories

c) Receivables

d) Bank

e) Advances lent


6. Which of the below items is not a part of Quick Assets?

a) Investments

b) Inventories

c) Receivables

d) Bank

e) Advances lent



1. Which budget shows the expenditure appropriate to various levels of output?

a) Purchase budget

b) Sales budget

c) Flexible budget

d) Fixed budget

e) Overhead budget


2. Master budget is a consolidated summary of:

a) Production & Sales budget

b) Purchase budget

c) All functional budgets

d) Financial budget

e) Plant budget


3. Lean Manufacturing focuses on:

a) Minimizing waste

b) Maximizing productivity

c) Maximum inventory

d) All the above

e) Only (a) & (b)


3. Lean Manufacturing focuses on:

a) Minimizing waste

b) Maximizing productivity

c) Maximum inventory

d) All the above

e) Only (a) & (b)

defining value

mapping the value stream

creating flowpull system

perfection


4. Which among the below statements is false as regards JIT system?

a) Production in smaller batches

b) selection of maximum suppliers

c) Reduction of set up time

d) Reduction of inventory



5. Which among the below statements is/are true as regards Kaizen?

a) Small & incremental changes routinely applied and sustained

b) Improvement ideas are expected only from the production team

c) The cost reductions resulting from kaizen costing are huge

d) Only production waste reduction is targeted

e) All the above


5. Which among the below statements is/are true as regards Kaizen?

a) Small & incremental changes routinely applied and sustained

b) Improvement ideas are expected only from the production team

c) The cost reductions resulting from kaizen costing are huge

d) Only production waste reduction is targeted

e) All the above

➢ gradual improvements in the existing situation ➢ Aims to involve workers from multiple functions and levels in the organization➢ no limits to the level of improvements➢ setting standards and then continually improving these standards➢ focus is on eliminating waste, improving systems, and improving productivity➢ Involves all employees and all areas of the business


6. Which of the below 5s functions aims at ‘setting cleaning frequency’?

a) Seiri

b) Shitsuke

c) Seiketsu

d) Seiso

e) Seiton


6. Which of the below 5s functions aims at ‘setting cleaning frequency’?

a) Seiri

b) Shitsuke

c) Seiketsu

d) Seiso

e) Seiton

➢ workplace organization method ➢ Sort (Seiri): eliminating obstacles ➢ Set In Order (Seiton): most efficient and accessible arrangements, FIFO basis➢ Shine (Seiso): set cleaning frequency, safety➢ Standardize (Seiketsu): Maintain high standards, orderliness, everything in order and according to its standard➢ Sustain (Shitsuke): training and discipline


7. Match column A to column B:

a) 1A-1B , 2A-2B, 3A-3B

b) 1A-2B , 2A-3B, 3A-1B

c) 1A-3B , 2A-1B, 3A-2B

d) 1A-3B , 2A-2B, 3A-1B

e) 1A-2B , 2A-2B, 3A-1B

1 Breakdown 1 speed loss

2 Rework 2 time loss

3 Minor Stoppages 3 quality loss

column A column B

Total Productive Maintenance

❑ system of maintaining & improving the integrity of production and quality systems.

❑ Keep equipments in top working condition


Overall Equipment Effectiveness (OEE)1. Equipment failure/breakdown 2. Set-up/adjustments 3. Idling and minor stoppages4. Reduce speed 5. Reduce yield 6. Quality defects and rework

✓OEE = Performance * Availability * Quality✓An OEE of 100% means that only good parts are produced (100% quality), at the

maximum speed (100% performance), and without interruption (100% availability).

✓ ideal values : Performance (>95%), Availability (>90%), Quality (>99%)

Time losses → Equipment availability

Speed losses → Equipment Performance efficiency

Quality losses



8. Cellular manufacturing aims at:

a) To move as quickly as possible

b) Make a wide variety of similar products

c) Make a wide variety of similar products

d) All the above

e) Only(a) & (b) above


➢ Each cell comprises of one or more machines ➢ each station completes s part of the manufacturing

process➢ Flexibility in operations is its biggest advantage➢ Changes are easy to make as the machines are

automatic


9) 3,08,538 DPMO implies:

a) 2σ level

b) 4σ level

c) 3σ level

d) 1σ level

e) 5σ level


10) The basic difference between BPR & Kaizen is:

a) Kaizen focuses on a drastic change whereas BPR focuses on minor incremental improvement

b) Kaizen focuses on a small change whereas BPR focuses on a drastic change

c) Kaizen applies to manufacturing sector whereas BPR applies to all sectors

d) Kaizen applies to all sectors whereas BPR applies to only manufacturing sector



10) The basic difference between BPR & Kaizen is:

a) Kaizen focuses on a drastic change whereas BPR focuses on minor incremental improvement

b) Kaizen focuses on a small change whereas BPR focuses on a drastic change

c) Kaizen applies to manufacturing sector whereas BPR applies to all sectors

d) Kaizen applies to all sectors whereas BPR applies to only manufacturing sector


➢ implementation of a new/significantly improved production/delivery method➢ Production/ Delivery/ Support services ➢ Business Process Re-engineering: ➢ fundamental rethinking and radical redesign of business processes


1. Which of the below is an assumption of the Investment Multiplier theory?

a) Absence of government expenditure

b) Marginal Propensity to consume is constant

c) no time lag between the receipt of income and its expenditure

d) a closed economy

e) All the above

Keynes’ Theory of Investment Multiplier

‘Effect of multiplication of one on the other’

Multiplier

Investment Multiplier

Income Employment


Original investment

Y= C + S


k 11-MPC

= 1MPS

= 5

=

11-0.8


2. In the Accelerator theory, the accelerator is:

a) National income

b) Government expenditure

c) Capital output ratio

d) Capital

e) Desired output

Accelerator

k = VY

Where, k = capital

V = capital output ratio

Y= National Income

V=Y ÷ k V= the no. of units of capital (k)

required to produce one unit of output

Accelerator

k = VY

Increase in output ∆ Y= Yt – Yt-1

kt= v(Yt – Yt-1)

Accelerator


3. Which is/are the motives for the demand for Money as per the Classical Theory?

a) Transactionary motive

b) Precautionary motive

c) Speculative motive

d) All the above

e) Only (a) & (b)


Classical approach Theory – Money Demand

MV = PT

MV + M'V' = PTM' = the total quantity of credit money

V' = velocity of circulation of credit money


Cambridge or Cash Balance approach

Transaction Motive

Precautionary Motive

hedge against uncertaintyMedium of exchange


Keynesian Theory

Transaction Motive Precautionary Motive Speculative Motive


4. Which of the below are the sources of money supply?

a) Government expenditure

b) Commercial banks

c) Central bank

d) Only (b) & (c)

e) (a), (b), (c)


4. Which of the below are the sources of money supply?

a) Government expenditure

b) Commercial banks

c) Central bank

d) Only (b) & (c)

e) (a), (b), (c)

Issue Currencies

Money & Banking Policies

Credit Money


5. Long Run Phillips Curve is vertical implies that?

a) There is no trade-off between inflation rate & unemployment in the short run

b) There is no trade-off between inflation rate & unemployment in the long run

c) The natural rate of unemployment is at 1%

d) There is full employment in the economy

e) The natural rate of unemployment is minimum

Phillips Curve

Chapter: Inflation & Phillips Curve

High inflation rate => Low Unemployment rate

Low inflation rate => High Unemployment rate

Phillips Curve


6. Trade cycles are important to business firms because:

a) Different phases of the cycle require fluctuating levels of input use

b) to decide on entry into the market

c) For a new product launch

d) to better anticipate the market

e) All the above


7. RBI acts as a lender of last resort through which of the below instruments of monetary policy?

a) Liquidity Adjustment Facility

b) Market stabilisation scheme

c) Statutory Liquidity Ratio

d) Open Market Operations

e) Marginal Standing Facility


8. The instrument/s of fiscal policy is/are:

a) Taxes

b) Public debt

c) Budget

d) All the above

e) Only (a) & (c)


9. The objectives of EXIM policy are:

a) To facilitate sustained growth in exports from India

b) generating new employment opportunities

c) To enhance the technological strength of Agriculture

d) All the above

e) Only (a) & (c)


9. The objectives of EXIM policy are:

a) To facilitate sustained growth in exports from India

b) generating new employment opportunities

c) To enhance the technological strength of Agriculture

d) All the above

e) Only (a) & (c)

Canalization is an important feature of Exim Policy under which certain goods can be imported only by designated agencies. For an example, an item like gold, in bulk, can be imported only by specified banks like SBI and some foreign banks or designated agencies.


10. Measure to overcome liquidity trap :

a) Increase the interest rates

b) Decrease in interest rates

c) Increase in taxes

d) Reducing Government spending

e) All the above


1. Capital gearing ratio shows the proportion of:

a) Fixed interest bearing capital to net worth

b) Shareholders funds to Total Assets

c) Equity & long - term liabilities

d) Only preference share capital and equity share capital

e) Total assets to total liabilities


2. Journal entry for equity share allotment money being received is:

a) Bank a/c debit, Equity share allotment a/c credit

b) Equity share allotment a/c debit, Bank a/c credit

c) Bank a/c debit, Equity share capital a/c credit

d) Equity share capital a/c debit, Bank a/c credit

e) Share application a/c debit, Equity share allotment a/c credit


3. When shares are issued at a premium,

a) Share premium a/c is debited

b) Share premium a/c is credited

c) Bank a/c is credited

d) Share capital a/c is debited

e) Share allotment a/c is debited


4. Bonus shares should not be issued out of:

a) Free reserves

b) Securities premium account

c) Capital redemption reserve a/c

d) All the above

e) Revaluation reserve a/c


4. Bonus shares should not be issued out of:

a) Free reserves

b) Securities premium account

c) Capital redemption reserve a/c

d) All the above

e) Revaluation reserve a/c

➢ Issue of additional shares to existing shareholders free of cost in proportion to their existing holding.➢ free reserves; securities premium account; or capital redemption reserve account➢ Bonus shares should not be issued out of revaluation reserves (i.e., reserves created by the

revaluation of assets➢ Capitalization of profits ➢ Conditions:➢ it is authorised by its articles, general meeting of the company➢ not defaulted in payment of interest or principal or statutory dues in respect of fixed deposits or

debt securities issued by it; ➢ the partly paid-up shares, if any outstanding on the date of allotment, are made fully paid-up.


5. Rights issue is not applicable for:a) Equity shares

b) Preference shares

c) Convertible debentures

d) Non-convertible debentures

e) (c) & (d)


5. Right of renunciation means:a) Right to cancel the rights issue by the company

b) Right to restrict the issue of rights shares

c) Right to carry forward the rights issue for the next 5 years

d) Right of the shareholder to transfer such right

e) Non-transferable shares

The right of the shareholder to surrender his right to buy the securities and transfer such right toany other person.Shareholders can act on the rights and buy more shares as per the particulars of the rights issue;they can sell them in the market; or they can pass on taking advantage of their rights

The monetised value available to the existing shareholders due to right issue is known as ’valueof right’.


6. ESOPs cannot be issued to:a) An independent directorb) A director who holds more than 10% of the company’s sharec) A consultant

d) All the above

e) Permanent employees


6. ESOPs cannot be issued to:a) An independent directorb) A director who holds more than 10% of the company’s sharec) A consultant

d) All the above

e) Permanent employees

• An option given to directors, officers or permanent employees of a company or of its subsidiary, in

India or outside India, or of a holding company or associate company of the company to purchase or

subscribe the securities offered by the company at a future date, at a concessional price generally.

• Giving ESOPs is a usual trend in start-ups where the companies give option to its employees, in lieu of high salary, to save high cash outflows, as the resources are limited.

• This motivates the employees at all levels to work at the optimum level and ensure the company’s growth, as they will also be benefited from the growth of the company.

• Exercise price is the price payable by the employee for buying shares under ESOP


7. Conditions of buy back are:a) the buy—back is authorised by its articlesb) a special resolution to be passedc) all the shares or other specified securities for buy-back are fully paid-upd) Provisions of SEBI are applicablee) All the above


7. Conditions of buy back are:a) the buy—back is authorised by its articlesb) a special resolution to be passedc) all the shares or other specified securities for buy-back are fully paid-upd) Provisions of SEBI are applicablee) All the above

Section 68 (2) states that no company shall purchase its own shares or other specified securities unless—

a) the buy—back is authorised by its articles;

b) a special resolution has been passed in general meeting of the company authorising the buy-back;

c) all the shares or other specified securities for buy-back are fully paid-up:

d) the buy-back of the shares or other specified securities listed on any recognised stock exchange is in

accordance with the regulations made by the Securities and Exchange Board of India in this behalf

e) the buy-back of the shares or other specified securities listed on any recognised stock exchange is in

accordance with the regulations made by the Securities and Exchange Board of India in this behalf

f) the ratio of the debt owed by the company (both secured and unsecured) after such buy-back is not

more than twice the total of its paid up capital and its free reserves


8. A liability that may occur depending on the outcome of an uncertain future event is technically termed as:a) long-term liabilityb) Short-term liabilityc) Contingent liabilityd) Future liabilitye) Unforeseen liability


8. A liability that may occur depending on the outcome of an uncertain future event is technically termed as:a) long-term liabilityb) Short-term liabilityc) Contingent liabilityd) Future liabilitye) Unforeseen liability

Ex: law suit


9. The balance of profits appear in the balance sheet under the sub-heading:a) Current assetsb) Reserves & surplusc) Fixed assetsd) Current liability & provisionse) Share capital


10. Preliminary expenses are shown in the balance sheet under the heading:a) Miscellaneous expensesb) Current liability & provisionsc) Share capitald) Reserves & surpluse) Current assets

THANK YOU

COMPLETE REVISION- PAPER 2 MCQ SERIES - Oliveboard

Documents

Transcript of COMPLETE REVISION- PAPER 2 MCQ SERIES - Oliveboard