Saturday, January 26, 2013

UGCNET - Commerce 08 (Dec' 2010) - Paper II

Paper – II
Note : This paper contains fifty (50) objective type questions, each question carrying two (2) marks. Attempt all the questions.

1. India abolished the quantitative restrictions on imports of 1429 items in 2000 and 2001 as per the commitment to which of the following ?
(A) South Asian Free Trade Association (SAFTA)
(B) General Agreement on Tariffs and Trade (GATT)
(C) World Trade Organisation (WTO)
(D) Non-Aligned Movement

2. Globalization is a term used to describe the process of removal of restrictions on which of the following ?
(A) Foreign Trade
(B) Investment
(C) (A) and (B) above
(D) None of the above

3. When a company takes over another one and clearly becomes a new owner, the action is called
(A) Merger
(B) Acquisition
(C) Strategic Alliance
(D) None of the above

4. Match the following two lists of statements.
                                List – I List – II
I. Rate at which RBI gives loans to Commercial Banks by discounting bills 1. Bank rate
II. Rate at which RBI borrows from Commercial Banks 2. Repo rate
                                                                                                           3. Prime lending rate
Codes :
       I II
(A) 3 1
(B) 2 1
(C) 1 2
(D) 3 2

5. The MRTP Act, 1969 was abolished in
(A) 1991
(B) 2002
(C) 2006
(D) None of the above

6. Read the following statements :
(i) Financial statements are only interim reports.
(ii) Financial statements are prepared on the basis of realizable values.
(iii) The preparation of financial statements is not an ultimate aim.
(iv) Certain assumptions are necessary to prepare financial statements.
Which of the following combinations consists of all true statements ?
(A) (i), (ii) and (iii)
(B) (ii), (iii) and (iv)
(C) (i), (iii) and (iv)
(D) (i), (ii) and (iv)

7. Which of the following is not a subsidiary book ?
(A) Purchase Book
(B) Sales Book
(C) Bills Receivables Book
(D) Assets Book

8. Which of the following are the application of funds?
(i) Redemption of Preference share capital.
(ii) Payment of Dividend.
(iii) Increase in working capital.
(A) only (i) and (ii)
(B) only (ii) and (iii)
(C) only (i) and (iii)
(D) (i), (ii) and (iii)

9. Accounting concepts are based on
(A) Certain assumptions
(B) Certain facts and figures
(C) Certain accounting records
(D) Government guidelines

10. The main purpose of Cost Accounting is to
(A) assist management in decision making.
(B) maximise profits and minimise losses.
(C) comply norms issued by the Government of India from time to time.
(D) prepare cost accounts in line with the accounting standards.

11. The various degrees of price elasticity of demand can be shown on a single demand curve as per which one of the following ?
(A) Total outlay method
(B) Proportional method
(C) Arc method
(D) Geometrical method

12. Which one of the following is not correct about the price discrimination by a monopolist, who intends to
(A) maximise the sales/profit
(B) share the consumer’s surplus
(C) increase the welfare of masses
(D) reduce the welfare of masses

13. Returns to scale involve variations in the quantities of the various factors of production
(1) Simultaneously, and/or
(2) Proportionately
(A) Both (1) and (2) are correct
(B) (1) is correct and (2) is incorrect
(C) (1) is incorrect and (2) is correct
(D) Both (1) and (2) are incorrect.

14. The firm under perfect competition will be in short-run equilibrium when
(A) Rising marginal cost is equal to the minimum average cost
(B) Marginal revenue is equal to rising marginal cost.
(C) Average revenue is equal to average cost
(D) Marginal revenue is equal to the falling marginal cost.

15. Match the following :
                                List – I List – II
(i) Law of demand is fully applicable (1) Giffen goods
(ii) Law of demand is not applicable at all (2) Veblon goods
(iii)Law of demand is partly applicable (3) Normal goods
Codes :
(i) (ii) (iii)
(A) 1 2 3
(B) 2 3 1
(C) 3 1 2
(D) 2 1 3

16. Statement – I : The heading for columns and rows are called caption and stub respectively.
Statement – II : Sturge’s Rule is used to decide the nature of manifold classification
Which of the following is correct ?
(A) Both I and II are false.
(B) Both I and II are true.
(C) I is true and II is false.
(D) I is false and II is true.

17. F-test is used to test the significance of the differences between
(A) Co-efficient of correlation between two sample groups.
(B) Co-efficient of correlation among more than two sample groups.
(C) Averages between two sample groups.
(D) Averages of more than two sample groups.

18. Co-variance between two variables is
(A) The average of the product of deviations taken from their averages.
(B) A is further divided by the product of their standard deviations.
(C) A is further divided by the product of their arithmetic averages.
(D) None of the above

19. Statement – A : Standard error of the mean is the standard deviation of the sampling distribution of mean.
Statement – B : Simple random sampling is nonprobability sampling method.
Which of the following combination is correct ?
(A) Both A and B are true.
(B) Both A and B are false
(C) A is true and B is false.
(D) A is false and B is true.

20. Which of the following has RDBMS ?
(i) Access
(ii) Excel
(A) (i) and (ii)
(B) only (i)
(C) only (ii)
(D) None of the above

21. In which type of organization is ‘grapevine’ communication used ?
(A) Informal organization
(B) Formal organization
(C) Departmental organization
(D) Matrix organization

22. In management science “Grid” refers to
(A) Diverse managerial styles
(B) Co-ordination
(C) Communication
(D) Motivation

23. “SWOT” is used for
(A) Planning                      (B) Organising
(C) Motivating                   (D) Controlling

 24. Which of the following pairs is not matched ?
                                List – I List – II
(A) Frederick Herzburg – Scientific Management
(B) Henry Fayol – Modern Management
(C) Max Weber – Bureaucracy
(D) Philip Kotlar – Marketing

25. Which one of the following is not covered under corporate governance ?
(A) Corporate social responsibility
(B) Business ethics
(C) Role of independent directors
(D) Government monitoring

26. Market gridding means
(A) establishing and running a web marketing facility
(B) a method of survey of expert’s opinion.
(C) managing brands and developing brand equity
(D) an analytical technique which facilitates dividing a market into segments.

27. Trade Mark is :
(A) a name, term, symbol or design which is intended to identify the goods and services of a seller.
(B) a brand that has been given legal protection.
(C) giving protection to the product and adding to its aesthetics and sales appeal.
(D) providing written information about the product.

28. Which of the following is not a part of strategic planning ?
(A) Purposes and mission
(B) Objectives
(C) Choice of businesses
(D) Social responsibility

29. Attitude means
(A) Impulses, desires and considerations of the buyer, which induces him to purchase a product
(B) A sum total of the individuals’ faith and feelings towards a product.
(C) The customer turning to his environment/world of information around him.
(D) Creating some relentless in the mind of an individual.

30. Match the following :
                                List – I List – II
(a) Supply chain management (i) putting the product in the mind of the prospective buyer
(b) Product positioning (ii) the process of gathering, filtering and analysing information relating to the marketing environment.
(c) Marketing environment analysis (iii) improving the performance of dealers through sharpening of their sales skills and product knowledge
(d) Dealer training (iv) larger in scope than both physical and marketing logistics
Codes :
      (a) (b) (c) (d)
(A) (i) (ii) (iii) (iv)
(B) (iv) (i) (ii) (iii)
(C) (ii) (iv) (iii) (i)
(D) (iii) (iv) (i) (ii)

31. Over capitalization may not be as a result of which one of the following ?
(A) Promotion of a company with inflated assets
(B) Application of low capitalization rate
(C) Shortage of capital
(D) Liberal dividend policy

32. Which one of the following is not matched ?
                                List – I List – II
(a) Interest is a deductible expense (i) Cost of debt capital
(b) Realised yield approach (ii) Cost of equity capital
(c) Extended yield approach (iii) Retained earnings
(d) Dividend capitalization approach (iv) Cost of preference share capital
Codes :
(A) (a) and (i)
(B) (b) and (ii)
(C) (c) and (iii)
(D) (d) and (iv)

33. The rate of discount at which NPV of a project becomes zero is also known as
(A) Average Rate of Return
(B) Internal Rate of Return
(C) Alternate Rate of Return
(D) None of the above

34. The dividend irrelevance theorem to share valuation was propounded by
(A) James E. Walter
(B) Myron Gordon
(C) Modigliani and Miller
(D) None of the above

35. Assertion (A) : Management of working capital refers to the management of current assets and current liabilities.
Reason (R) : But the major thrust of course, is on the management of current assets ; because current liabilities arise in the context of current assets.
Codes :
(A) Both (A) and (R) are incorrect.
(B) (A) is correct and (R) is incorrect.
(C) Both (A) and (R) are correct.
(D) (A) is incorrect, but (R) is correct.

36. Business plans designed to achieve the organizational objectives is called
(A) Human Resource Planning
(B) Human Resource Forecasting
(C) Strategic Plan
(D) Corporate Development Plan

37. “360” degree method relates to
(A) Performance appraisal
(B) Organization climate
(C) Employees morale
(D) Retrenchment

38. Match the following :
                                List – I List – II
(a) Adam Smith (i) Subsistence Theory
(b) Karl Marx (ii) Wages Fund Theory
(c) John Davidson (iii) The Surplus Value Theory
(d) David Ricardo (iv) Bargaining Theory
Codes :
     (a) (b) (c) (d)
(A) (ii) (iii) (iv) (i)
(B) (i) (ii) (iii) (iv)
(C) (iv) (i) (ii) (iii)
(D) (iii) (iv) (i) (ii)

39. Assertions :
(i) High morale leads to high productivity.
(ii) High morale need not necessarily lead to high productivity.
(A) Both (i) and (ii) are correct.
(B) Both (i) and (ii) are incorrect.
(C) (i) is correct and (ii) is incorrect.
(D) (i) is incorrect and (ii) is correct.

40. Statements :
(i) Fringe benefits, now-a-days, are a significant component of “compensation”.
(ii) Under Piece-rate plan, employees are paid at a stipulated rate per hour of work done by them
(A) Both (i) and (ii) are correct.
(B) Both (i) and (ii) are incorrect.
(C) (i) is incorrect and (ii) is correct.
(D) (i) is correct and (ii) is incorrect.

41. Which one of the following is not an instrument of credit control in the banking system ?
(A) Open market operations
(B) Moral suasion
(C) Cash Reserve Ratio
(D) Tax rates

42. Match the following with their year of establishment :
(a) IDBI (i) 1982
(b) IFCI (ii) 1964
(c) NABARD (iii) 1948
(d) ICICI (iv) 1955
Codes :
     (a) (b) (c) (d)
(A) (iii) (i) (iv) (ii)
(B) (iv) (ii) (i) (iii)
(C) (ii) (iii) (i) (iv)
(D) (i) (iii) (iv) (ii)

43. Which of the following is not a function of a Rural Bank ?
(A) To accept deposits
(B) To waive loans
(C) To grant advances
(D) To supply inputs to farmers

44. From which date have all Banks started sharing their ATM free of cost for transactions ?
(A) January 1, 2009
(B) April 1, 2009
(C) July 1, 2009
(D) September 1, 2009

45. Which of the following is not the fund based business of commercial banks ?
(A) D.P. Operations
(B) Loans
(C) Deposits
(D) Discounting of Bills

46. Foreign Exchange and foreign currencies in India are governed by
(A) SCRA Act
(B) Banking Regulation Act
(C) FEMA Act
(D) SEBI Act

47. The balance of payments of a country on Current Account is equal to
(A) Balance of trade plus short term capital flows.
(B) Balance of trade plus net invisible exports.
(C) Balance of payments minus capital flows.
(D) Balance of invisible trade plus imports.

48. The following table shows cost per unit of production of two goods, wheat and cloth in two countries X and Y with no transportation cost and free trade :
                                X(Rs.)  Y(Rs.)
Wheat                  50          350
Cloth                     100         500
Which one of the following will take place ?
(A) No trade will take place.
(B) X will export wheat and import cloth.
(C) X will export cloth and import wheat.
(D) There is no enough information to comment.

49. A debit balance of payments occurs due to
(i) Low imports and high exports
(ii) High imports and low exports.
(A) Both (i) and (ii) are correct.
(B) Both (i) and (ii) are incorrect.
(C) Only (i) is correct.
(D) Only (ii) is correct.

50. Match the following economic institutions with the year of their establishment :
(a) World Bank (i) 1946
(b) International Finance Corporation (ii) 1956
(c) International Development Agency (iii) 1960
(d) Asian Development Bank (iv) 1966
Codes :
      (a) (b) (c) (d)
(A) (i) (ii) (iii) (iv)
(B) (i) (iii) (iv) (ii)
(C) (ii) (i) (iv) (iii)
(D) (iii) (i) (ii) (iv)

UGCNET - Commerce 08 (Dec' 2008) - Paper II

Note : This paper contains fifty (50) objective-type questions, each question carrying two (2) marks.  Attempt all of them.

1. Job analysis provides information used for :
(A) Organisation chart (B) Policy
(C) Procedure (D) Promotion

2. In functional organisation :
(A) The organisation is divided according to the type of work involved.
(B) The authority flows from the man at the top to the lowest man vertically.
(C) Each worker serves only one supervisor
(D) The organisation is divided according to the skill required to perform a work.

3. Which of the following relates to training workers ?
(A) Job rotation (B) Induction
(C) Vestibule (D) Task

4. 360 degree method relates to :
(A) Performance appraisal
(B) Organisation climate
(C) Employees morale
(D) Retrenchment method

5. Human relations approach of management is associated with :
(A) Abraham Maslow (B) Peter F. Drucker
(C) Elton Mayo (D) Herzberg

6. Attrition is related to :
(A) Job description (B) Resignation/Termination
(C) Job evaluation (D) Merit rating

7. The economic reforms have failed to :
(A) Keep fiscal deficits to the targeted levels.
(B) Fully implement industrial deregulation.
(C) Fully open the economy to trade.
(D) All of the above

8. Which of the following developments was not noticed during 1991 (economic reforms) ?
(A) National debt was nearly 60 percent of the GNP of India.
(B) Inflation crossed double digits.
(C) Foreign reserves were maintained at a very high level.
(D) None of the above.

9. Which of the following statement is incorrect ?
(A) Even monopolistic can earn losses.
(B) Firms in a perfectly competitive market are price takers.
(C) It is always beneficial for a firm in a perfectly competitive market to discriminate prices.
(D) Kinked demand curve is related to an oligopolistic market.

10. Which of the following is the best general definition of the study of economics ?
(A) Inflation and unemployment in a growing economy.
(B) The best way to invest in the stock market.
(C) Business decision making under foreign competition.
(D) Individual and social choice in the face of scarcity.

11. Which of the following statements is correct ?
(A) Under zamindari system, farmers directly paid land revenue to the state.
(B) At  present, income tax revenues from the agriculture sector are negligible.
(C) Commercial banks are providing loans to the agriculture sector at zero interest rate.
(D) None of the above.

12. Which of the following statements is incorrect ?
(A) About 80 per cent of agricultural area has irrigation facilities.
(B) About two third area is rain-fed in India.
(C) Productivity per worker in agriculture is much lower than that in industry.
(D) Cropping pattern is quite skewed in India.

13. Abolition of intermediaries and tenancy reforms area both parts of :
(A) Industrial reforms in India.
(B) External sector reforms in India.
(C) Land reforms in India.
(D) Banking reforms in India.

14. Which of the following is not a measure of dispersion ?
(A) Skewness
(B) Mean Deviation
(C) Standard Deviation
(D) Quartile Deviation

15. The immediate solvency ratio is :
(A) Current Ratio
(B) Quick Ratio
(C) Debtors Turnover Ratio
(D) Stock Turnover Ratio

16. The Foreign Exchange Management Act (FEMA) was implemented in the year :
(A) 1996 (B) 1997
(C) 1998 (D) 1999

17. SEZ Policy in India is motivated by the experience of :
(A) Japan (B) China
(C) USA (D) Germany

18. In order to control credit :
(A) CRR should be increased and Bank Rate should be decreased.
(B) CRR should be decreased and Bank Rate should be decreased.
(C) CRR should be increased and Bank Rate should be increased.
(D) CRR should be decreased and Bank Rate should be increased.

19. In order to control credit in the country, the RBI may :
(A) Buy Securities in the open market.
(B) Sell Securities in the open market.
(C) Reduce CRR.
(D) Reduce Bank Rate.

20. Which bank is called the .Bank of Issue. ?

21. In order to encourage investment in the country, the RBI may :
(A) Reduce CRR
(B) Increase CRR
(C) Sell Securities in the open market
(D) Increase Bank Rate

22. The term “funds” as used in “funds flow statement” means :
(A) Cash
(B) Current Assets
(C) Current Liabilities
(D) Current Assets minus Current Liabilities

23. What is the .Fundamental Premise of Economics. ?
(A) Individuals are capable of establishing goals and acting in a manner consistent with achievement of those goals.
(B) Natural resources will always be scare.
(C) Individuals choose the alternative for which they believe the net gains to be the greatest.
(D) No matter what the circumstances, individual choice always involve a trade-off.

24. The consumer is in equilibrium at a point where the budget line :
(A) Is below an indifference curve
(B) Is above an indifference curve
(C) Is tangent to an indifference curve
(D) Cuts an indifference curve

25. Which of the following statements is correct concerning the relationships among the firm’s functions ?
(B) TVC = TFC - TC
(C) TFC = TC - TVC
(D) TC = TVC - TFC

26. In perfect competition in the long run there will be no__________.
(A) Normal profits
(B) Supernormal profits
(C) Production
(D) Costs

27. An indifference curve slopes down towards right since more of one commodity and less of another result in :
(A) Same satisfaction
(B) Greater satisfaction
(C) Maximum satisfaction
(D) Decreasing expenditure

28. Which of the following results in the flow of funds ?
(A) Creditors issued bills payable
(B) Loss on the sale of machinery
(C) Transfer to general reserve
(D) Building sold on credit

29. If net profit is Rs. 25,000/- after writing off preliminary expenses of Rs. 5000/- then the funds from operation will be :
(A) Rs. 25,000/-
(B) Rs. 30,000/-
(C) Rs. 20,000/-
(D) Rs. 10,000/-

30. Which of the following is a non-current liability ?
(A) Bills payable
(B) Sundry creditors
(C) Bank overdraft
(D) Long term loans

31. Match the followings :
                                                                List - I List - II
(a) Indira Awas Yojana (i) This programme was launched in 2001. This programme aims at providing wage employment in rural areas and food security to the people.
(b) Sampoorna Grameen Yojana (ii) This is a major scheme for construction of houses to be given to the poor, free of cost.
(c) Pradhan Mantri Gram Sadak (iii) This was introduced in April 1999 as a Yojana result of restructuring and combining the Integrated Rural Development Programme.
(d) Swaran Jayanti Gram Swarozgar (iv) This was introduced in December 2000 Yojana to provide road-connectivity through good all weather roads to unconnected villages.
Code :
      (a) (b) (c) (d)
(A) (ii) (i) (iv) (iii)
(B) (i) (ii) (iv) (iii)
(C) (iii) (iv) (ii) (i)
(D) (iv) (iii) (ii) (i)

32. Match the following :
                                                List - I List - II
(a) WTO (i) Provides loans to address short-term balance of payments problems.
(b) RBI (ii) Multilateral trade negotiating body.
(c) IMF (iii) Facilitating lending and borrowing for reconstruction and development.
(d) IBRD (iv) Central Bank of India.
Code :
     (a) (b) (c) (d)
(A) (ii) (iv) (i) (iii)
(B) (iv) (iii) (ii) (i)
(C) (iii) (ii) (iv) (i)
(D) (i) (ii) (iii) (iv)

33. Match the items in List - I with items in List - II :
                                List - I List - II
(a) Margin of Safety (i) Earning Power
(b) ROI (ii) Cash Flow statement
(c) Current Ratio (iii) Break Even analysis
(d) Cash Equivalents (iv) Solvency
Code :
      (a) (b) (c) (d)
(A) (ii) (iii) (i) (iv)
(B) (iii) (i) (iv) (ii)
(C) (iv) (ii) (iii) (i)
(D) (i) (ii) (iii) (iv)

34. Match the items in List - I with items in List - II :
                List - I List - II
(a) Theory X (i) Participative
(b) Theory Y (ii) Autocratic
(c) Theory Z (iii) Democratic
Codes :
      (a) (b) (c)
(A) (i) (ii) (iii)
(B) (ii) (iii) (i)
(C) (iii) (i) (ii)
(D) (ii) (i) (iii)

35. Match the items in List - I with items in List - II :
                                List - I List - II
(a) Peter F. Drucker (i) Unity of command
(b) Henry Fayol (ii) Achievement Motivation
(c) McAurthy (iii) M.B.O.
(d) McLeland (iv) 4 Ps of marketing
Code :
    (a) (b) (c) (d)
(A) (i) (ii) (iii) (iv)
(B) (ii) (iii) (iv) (i)
(C) (iv) (i) (ii) (iii)
(D) (iii) (i) (iv) (ii)

36. Match the following :
                                List - I List - II
(Decisions regarding branding) (Explanation)
(a) Diversification (i) Preservation of product
(b) Quality (ii) Production of one or more products
(c) Variety (iii) Finding of new products in same line
(d) Packing (iv) Various product
Code :
      (a) (b) (c) (d)
(A) (ii) (iv) (i) (iii)
(B) (iii) (ii) (iv) (i)
(C) (iii) (i) (iv) (ii)
(D) (iv) (iii) (ii) (i)

37. Statements :
(i) Overcapitalisation is desirable
(ii) Undercapitalisation is more desirable
(A) Both are Correct
(B) Both are incorrect
(C) (i) is correct (ii) is incorrect
(D) (ii) is correct (i) is incorrect

38. Statements :
(i) High morale leads to high productivity
(ii) High morale need not necessarily lead to high productivity
(A) Both are correct
(B) Both are incorrect
(C) (i) is correct (ii) is incorrect
(D) (i) is incorrect (ii) is correct

39. Statements :
(i) Maslow’s theory conveys hygiene factors
(ii) Maslow’s theory conveys satisfied need is no more a motivator
(A) (i) is correct (ii) is incorrect
(B) (ii) is correct (i) is incorrect
(C) Both are correct
(D) Both are incorrect

40. Statements :
(i) Agency theory relates to the relationship between management and employees.
(ii) Agency theory relates to middlemen.
(A) Both are correct
(B) Both are incorrect
(C) (i) is correct (ii) is incorrect
(D) (ii) is correct (i) is incorrect

41. Statements :
Assertion - (A) : Demand for a commodity refers to quantity of the commodity demanded at a certain price during any particular period of time.
Reason - (R) : Contraction of demand is the result of increase in the price of the good concerned.
(A) Both (A) and (R) are correct
(B) Both (A) and (R) are incorrect
(C) (A) is correct but (R) is incorrect
(D) (A) is incorrect but (R) is correct

42. A leader uses the following methods :
(i) Uses criticism
(ii) Encourages growth
(iii) Sets  objectives
(iv) Gives orders and directions
Which of these methods are used by a democratic leader ?
(A) (i) and (ii)                     (B) (iii) and (iv)
(C) (ii) and (iii)                    (D) (i), (ii) and (iv)

43. In the technique of MBO :
(i) Overall objectives are set at the top of the organisational hierarchy
(ii) Individual objectives coincide with objectives of the organisation
(iii) Performance should be evaluated periodically
(iv) Objectives are decided at the subordinate level
(A) (i) and (ii)                     (B) (i), (ii) and (iii)
(C) (i) and (iii)                     (D) (i), (ii), (iii) and (iv)

44. Staffing includes :
(i) Training
(ii) Appraisal
(iii) Placement
(iv) Directing
(A) (i) and (iii)                    (B) (i), (ii) and (iii)
(C) (ii) and (iii)                    (D) (i), (ii), (iii) and (iv)

45. Working capital cycle involves the following :
(i) Acquisition of Raw material
(ii) Finished goods
(iii) Receivables
(iv) Cash
(v) Work in progress
Which of the sequence is correct ?
(A) (iv), (iii), (i), (v), (ii)                   (B) (i), (ii), (iii), (iv), (v)
(C) (i), (v), (ii), (iii), (iv)                                 (D) (iv), (i), (ii), (iii), (v)

Read the following passage and answer the questions from 46 to 50 :
Accounting is the process of identifying, measuring and communicating economic information to permit informed judgments and decisions by the users of the information. It primarily focuses on measurement, analysis, interpretation and use of information. As an information system, accounting links an information source, a channel of communication and set of receivers.  Accounting system should be designed to classify financial information on a basis suitable for decision-making purposes and to process the tremendous quantities of data efficiently and accurately.  Financial accounting is concerned with providing information to external users and it is oriented towards the preparation of final statements which summarises the results of operations  for selected periods of time and show the financial position of business at particular date. Management accounting is concerned with providing information to managers to carry out their responsibilities and functions such as planning, execution, control and decision - making.  The end product of the financial accounting process is a set of reports called financial statement, such as, profit and loss account, balance-sheet and statement of changes in financial position.  Profit & loss account shows the results of operations for a period of time, balance-sheet shows financial position on certain date and statement of changes in financial position shows where the financial resources have come and where they have gone.

46. A list of assets, liabilities and owner’s equity of a business enterprise as of a specific date is :
(A) Income Statement                   (B) Cash Flow Statement
(C) Balance Sheet                            (D) Profit and Loss Account

47. The balance-sheet is related to the income statement in the same way that :
(A) A point in time is related to a period of time
(B) A period of time is related to a point in time
(C) A point in time is related to another point in time
(D) A period of time is related to another period of time

48. The properties own by a business enterprise are called :
(A) Assets                            (B) Liabilities
(C) Capital                           (D) Owner’s Equity

49. Which of the following is an important reason for studying accounting ?
(A) The information provided by accounting is useful in making many economic decisions.
(B) Accounting plays an important role in society
(C) The study of accounting could lead to a challenging career.
(D) All of the above.

50. Statement of changes in financial position shows :
(A) Sources and uses of funds                    (B) Assets and Liabilities
(C) Income and Expenses                             (D) Losses and Gains.


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