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COMMERCE PAGE 2

Commerce Page 2- MCQs

1. Which of the following factor does not affect the internal environment ?
 (a) Strategy (b) Structure
 (c) Suppliers (d) Marketing capabilities
Ans: C

2. What is the time limit for filing a complaint to the District Forum ?
 (a) One year (b) Two years
 (c) Three years (d) Infinite (There is no such limit)
Ans: B

3. When the first five year plan was started in India ?
 (a) 1951 (b) 1950
 (c) 1952 (d) 1949
Ans: A

4. Amount realised from the sale of old furniture is a
 (a) Capital profit (b) Capital receipt
 (c) Revenue receipt (d) None of the above
Ans: B

5. In case of fund flow statement, ‘Fund’ means
 (a) Only the cash (b) Only capital
 (c) Networking capital (d) None of the above
Ans: C

6. Given :
 Debentures : ` 5,00,000
 Equity share capital : ` 25,00,000
 Cash : ` 1,00,000
 Debtor : ` 2,00,000
 Debt Equity Ratio will be
 (a) 5 : 1 (b) 0.2 : 1
 (c) 5.6 : 1 (d) None of these
Ans: B

7. Given :
 Total Assets : ` 8,00,000
 Current Liabilities : ` 2,00,000
 No. of shares : ` 40,000
 Face value per share : ` 10
 Value per share will be :
 (a) ` 15.00 (b) ` 10.00
 (c) ` 20.00 (d) None of these
Ans: A

8. If a share of ` 10, on which an amount of ` 6 has been paid, is forfeited. It can be reissued at minimum price of
 (a) ` 10 (b) ` 6
 (c) ` 4 (d) None of these 
Ans: C
9. ‘P’ and ‘Q’ are partners, sharing profits in the ratio of 8 : 5 respectively. On 1st April 2016, they admitted R into partnership. The new profit sharing ratio among P, Q and R is fixed as 6: 4 : 3 respectively. The sacrifice ratio of ‘P’ will be
 (a) 2/ 13
 (b) 1/ 13
 (c) 3/ 13
 (d) None of these
Ans: A

10. The study of the effects of output volume on revenue, expenses and net income is known as
 (a) Budgeting (b) Cash Flow
 (c) Cost Flow (d) Cost Volume Profit Analysis
Ans: D

11. A responsibility centre in which manager is responsible for cost only, is known as
 (a) Cost Centre (b) Profit Centre
 (c) Investment Centre (d) All of these
Ans: A

12. In which Head, dividend received by Financial Enterprise is shown in the Cash Flow Statement ?
 (a) Operating Activities (b) Investment Activities
 (c) Financial Activities (d) All of these
Ans: A

13. Variance analysis is related to
 (a) Ratio analysis (b) Standard costing
 (c) Marginal costing (d) None of these
Ans: B

14. Liquid Ratio is calculated as follows :
 (a) Total Assets / Total Liabilities (b) Current Assets / Current Liabilities
 (c) Liquid Assets / Current Liabilities (d) Current Liabilities / Liquid Assets
Ans: C

15. Which one of the following is Activity Ratio ?
 (a) Net Profit Ratio (b) Current Ratio
 (c) Debtor Turnover Ratio (d) None of these
Ans: C

16. Accounting for price level changes is related to
 (a) Cost Accounting (b) Financial Accounting
 (c) Management Accounting (d) Inflation Accounting
Ans: D

17. Contribution is
 (a) Sales – Purchase (b) Sales – Variable Expenses
 (c) Sales – Fixed Expenses (d) None of these
Ans: B

18. AS – 3 is related to
 (a) Cash Flow Statement (b) Fund Flow Statement
 (c) Accounting for Depreciation (d) None of these 
​Ans: A
​19. The example of Joint Demand is
 (a) Ink and Pen (b) Newspaper and Magazines
 (c) Bus and Train (d) All of the above
Ans: A

20. The ‘Concept of Elasticity of Demand’ propounded by
 (a) Samuelson (b) Canon
 (c) Marshall (d) None of these
Ans: C

21. The most important source of wage differentials is
 (a) Regional variation (b) Skills
 (c) Unionization (d) Relative danger
Ans: B

22. The ‘Concept of cross Elasticity of Demand’ was given by
 (a) Moor (b) Marshall
 (c) Robert Triffin (d) None of these
Ans: A

23. Income effect towards Giffin Commodities will be
 (a) Positive (b) Negative
 (c) Zero (d) None of these
Ans: B

24. In which economy, the consumer is called ‘the Emperor’ ?
 (a) Socialism (b) Mixed
 (c) Capitalism (d) None of these
Ans: C

25. Thought of consumer saving was propounded by
 (a) Duepit (b) Marshall
 (c) Hicks (d) None of these
Ans: A

26. If production is zero, then fixed cost for short term will be
 (a) Positive (b) Negative
 (c) Zero (d) None of these
Ans: A

27. Law of Production was propounded by
 (a) Robbins (b) Stiggler
 (c) Marshall (d) None of these
Ans: C

28. Which statement is correct ?
 (a) Income effect = Price effect + Substitute effect
 (b) Substitute effect = Income effect + Price effect
 (c) Price effect = Income effect + Substitute effect
 (d) None of these
Ans: C

29. ‘Statistics is the science of Counting.’ Whose statement is this ?
 (a) Bowley (b) King
 (c) Seligman (d) None of these 
​Ans: A
​30.  What is the time limit for filing appeal against the order of Cyber Appellate Tribunal under Information Technology Act ?
 (a) 15 days (b) 30 days
 (c) 45 days (d) 60 days 
Ans: D

31. The objects of statistical investigation are decided
 (a) after the compilation of data (b) before the compilation of data
 (c) during the compilation of data (d) None of the above
Ans: B

32. The errors which do not occur in census investigation are
 (a) Non-sampling error (b) Biased error
 (c) Sampling error (d) None of these
Ans: C

33.  Which Section of Information Technology Act deals with Hacking Cyber Terrorism ?
 (a) 66 (b) 66 A
 (c) 66 F (d) 69
Ans: C
​
34. What does Accounting software do ?
 (a) Recording the transactions (b) Preparing Trial-Balance
 (c) Preparing Balance-Sheet (d) All of the above
Ans: D

35. Computer application in inventory control is helpful in
 (a) present position of stock (b) valuation of closing stock
 (c) reduction in cost (d) All of the above
Ans: D

36. According to ‘Theo Haimann’, the concept of Management are :
 (a) 2 (b) 3
 (c) 4 (d) None of the above
Ans: B

37. The “Scientific Management Theory” given by
 (a) F.W. Taylor (b) Henri Fayol
 (c) George R. Terry (d) None of these
Ans: A

38. The Theory of Bureaucracy was given by
 (a) Henri Fayol (b) Elton Mayo
 (c) Max Weber (d) None of these
Ans: C

39. The Father of ‘Brain storming’ was
 (a) Elton Mayo (b) Alex F. Osborn
 (c) Henri Fayol (d) None of these
Ans: B

40. Which function of Management do not exist without planning ?
 (a) Organising (b) Staffing
 (c) Directing (d) Controlling 
Ans: D

41. ‘Managerial Grid’ model of leadership was developed by
 (a) Blake and Mouton (b) Stephen Robbins
 (c) Victor Vroom (d) None of these

Ans: A

42. ‘Grapevine’ communication is type of
 (a) Formal Communication (b) Informal Communication
 (c) Vertical Communication (d) None of these

Ans: B

43. Who was the father of the ‘Modern Management Theory’ ?
 (a) F.W. Taylor (b) Peter F. Drucker
 (c) Henri Fayol (d) None of these

Ans: C

44. The leadership style which is based on consultation with his group is called
 (a) Autocratic style (b) Democratic style
 (c) Free-rein style (d) None of these

Ans: B

45. The Third stage of Consumer buying decision process is
 (a) Evaluation of alternative (b) Information search
 (c) Purchase decision (d) None of these

Ans: A

46. The concept of Marketing mix consisting of 4 P’s of marketing was given by
 (a) Peter F. Drucker (b) Philip Kotler
 (c) E. Gerome McCarthy (d) None of these

Ans: C

47. The concept of ‘Marketing Myopia’ was given by
 (a) E.W. Emerson (b) Peter F. Drucker
 (c) Philip Kotler (d) Theodore Levitt

Ans: D

48. Which of the following is fundamental determinant of a person’s wants and behaviour ?
 (a) Culture (b) Family
 (c) Perception (d) None of these

Ans: A

49. A descriptive thought which a person holds about some object is referred to as
 (a) Attitude (b) Belief
 (c) Emotion (d) None of these

Ans: B

50. At what stage of product life cycle, advertisement expenses is maximum ?
 (a) Introductory stage (b) Growth stage
 (c) Maturity stage (d) Decline stage

Ans: A
​51. The set of all actual and potential buyers of a product is referred to
 (a) A Customer group (b) An Industry
 (c) A Market (d) None of these
Ans: C

52. Which one of the following is a part of short-term loan ?
 (a) Debenture (b) Bank overdraft
 (c) Mortgage loan (d) None of these 
Ans: B
​53. Which one of the following is related to Capital budgeting ?
 (a) Liquid Ratio (b) Net Present Value method
 (c) Break-even Point Analysis (d) None of these
Ans: B

54. The Gross Working Capital means
 (a) Total Current Assets + Total Current Liabilities
 (b) Total Current Assets – Total Current Liabilities
 (c) Total of Current Assets
 (d) None of these
Ans: C

55. Which one of the following is not a Securities Rating Agency ?
 (a) SEBI (b) ICRA
 (c) CRISIL (d) None of these
Ans: A

56. Which one of the following is related to operating budgets ?
 (a) Sales Budget (b) Purchase Budget
 (c) Production Budget (d) All of the above
Ans: D

57. Given :
 Cash in hand : ` 10,000
 Debtor : ` 20,000
 Bills receivable : ` 5,000
 Plant : ` 5,000
 Creditor : ` 15,000
 Net Working Capital will be
 (a) ` 25,000 (b) ` 20,000
 (c) ` 40,000 (d) None of these
Ans: B

58. Which one of the following is a function of SEBI ?
 (a) Regulating the working of banks
 (b) Issue current notes
 (c) Regulating the working of stock brokers
 (d) None of these
Ans: C

59. Given :
 Initial investment : ` 50,000
 Depreciation per year : ` 2,000
 Constant annual cash flow : ` 10,000
 Pay back period will be
 (a) 5 years (b) 5.2 years
 (c) 4.8 years (d) None of these
Ans: A

60. Sources of long term finance will be
 (a) Equity Share Capital (b) Debenture
 (c) Preference Share Capital (d) All of the above
Ans: D 
​61. Given :
 Sales : ` 1,00,000
 Variable cost : ` 50,000
 Interest : ` 5,000
 Fixed cost : ` 25,000
 Operating leverage will be
 (a) 4 (b) 2
 (c) 6 (d) 1.8
Ans: B

62. Given :
 Contribution : ` 1,00,000
 Fixed cost : ` 50,000
 Interest : ` 10,000
 Income Tax : ` 10,000
 Combined leverage will be :
 (a) 2.5 (b) 2.0
 (c) 1.6 (d) 1.25
Ans: A

63. If the face value of share is ` 10, earning per share is ` 4 and dividend per share is ` 2, then dividend payout ratio will be
 (a) 20% (b) 40%
 (c) 25% (d) 50%
Ans: D

64. Human Resource Management does not have any contribution from which of the following disciplines ?
 (a) Psychology (b) Sociology
 (c) Anthropology (d) Biology
Ans: D

65. Which one of the following is the qualitative method of Demand Forecasting Technique of Human Resource Planning ?
 (a) Delphi Technique (b) Group Brain storming
 (c) Work Study Technique (d) None of these
Ans: A

66. The ‘Principle of Equal pay for Equal work’ is contained in which Article of the Indian Constitution ?
 (a) Article 7 (b) Article 36
 (c) Article 39 (d) None of these
Ans: C

67. ‘Extra – mural’ activities relates to :
 (a) Safety (b) Welfare
 (c) Health (d) None of these
Ans: B

68. Under the Factories Act, 1948 provisions for ‘Creche’ is applicable , if 
 (a) 10 women are employed.
 (b) 20 women are employed.
 (c) 30 or more than 30 women are employed.
 (d) None of these 
Ans: C
​69. Which of the following theories of labour welfare is based on ‘Man’s love for Mankind’ ?
 (a) Functional theory (b) Religious theory
 (c) Public Relation Theory (d) Philanthropic theory
Ans: D

70. Under the Employee’s Provident Fund & Miscellaneous Provisions Act, 1952, matters provided under the Insurance Scheme are specified under
 (a) Schedule – I (b) Schedule – II
 (c) Schedule – III (d) Schedule – IV
Ans: D

71. The Industrial Development Bank of India (IDBI) was established in
 (a) July 01, 1954 (b) July 01, 1964
 (c) April 01, 1964 (d) None of the above
Ans: B

72. Profitable investment of a Commercial bank includes
 (a) Money at call and short notice (b) Discounting of bills
 (c) Treasury bills (d) All of the above
Ans: D

73. The important organisation of development of small scale industries is
 (a) IDBI (b) EXIM BANK
 (c) SIDBI (d) None of the above
Ans: C

74. Demonetisation of ` 1,000 & ` 500 notes was done in India on
 (a) 1st November, 2016 (b) 8th November, 2016
 (c) 15th November, 2016 (d) 30th November, 2016
Ans: B

75. When Bank Rate will be lower, creation of credit will be
 (a) more (b) lesser
 (c) zero (d) None of the above
Ans: A

76. ‘NABARD’ provides re-finance for
 (a) Short term (b) Medium term
 (c) Long term (d) All of the above
Ans: D

77. The Head Office of Reserve Bank of India is situated at
 (a) Delhi (b) Kolkata
 (c) Mumbai (d) Ahmedabad
Ans: C

78. Qualitative credit control include
 (a) Bank Rate Policy (b) Rationing of Credit
 (c) Open Market Operation (d) None of the these
Ans: B

79. Reserve Bank of India was established in
 (a) 1935 (b) 1948
 (c) 1950 (d) 1951
Ans: A

80. The chairman of NABARD is
 (a) Governor of R.B.I. (b) Finance Minister
 (c) Deputy Governor of R.B.I. (d) None of the above 
Ans: D
​81. The First Report of Narsimhan Committee for the banking sector reforms was presented
 (a) In 1990 (b) In 1991
 (c) In 1992 (d) In 1994
Ans: B

82. All transaction of International Monetary Fund are expressed at present in
 (a) Gold (b) US Dollar
 (c) SDR (d) None of these
Ans: C

83. World Trade Organisation came into existence in the year
 (a) 1995 (b) 1993
 (c) 1991 (d) None of these
Ans: A

84. ‘SAARC’ secretariat is situated at
 (a) Pakistan (b) Bhutan
 (c) India (d) Nepal
Ans: D

85. Which one of the following country is not a member of ASEAN ?
 (a) Singapore (b) Brunei
 (c) Japan (d) Thailand
Ans: C

86. In which Head, income from family pension is included under the Income Tax Act ?
 (a) Income from Salary (b) Income from other sources
 (c) Income from Business & Profession (d) Income from House property
Ans: B

87. In which Section of Income Tax Act, daily allowances received by members of parliament will be exempted ?
 (a) 10(3) (b) 10(15)
 (c) 10(16) (d) 10(17)
Ans: D

88. If Mr. X received ` 14,000 from winning of lottery, then what is the amount of gross income of winning ?
 (a) ` 20,000 (b) ` 14,000
 (c) ` 16,000 (d) None of these
Ans: A

89. Which Section of the Income Tax Act relates to claim deduction for premium paid for Health Insurance ?
 (a) Section 80 C (b) Section 80 D
 (c) Section 80 E (d) Section 80 G
Ans: B

90. In which Section of Income Tax Act, the sum received by a member from Hindu Undivided Family (HUF) will be exempted
 (a) 10 (5) (b) 10 (4)
 (c) 10 (2) (d) 10 (1)
Ans: C

91. Which Section of the Income Tax Act relates to claim deduction for the amount of interest received from Bank Saving Account ?
 (a) 80 TTA (b) 80 E
 (c) 80 U (d) 80 C 
​Ans: A
 ​92. Income Tax Act Section 24 is related to
 (a) Annual value
 (b) Deduction income from house property
 (c) Municipal tax
 (d) None of these
Ans: B

93. In which date, the Income Tax Act is enforced in India ?
 (a) 1-4-1960 (b) 1-4-1961
 (c) 1-4-1962 (d) 1-7-1962
Ans: C

94. Section 2 (62) of the Companies Act, 2013 is related to
 (a) Objects clause (b) ‘One person’ Company
 (c) Name clause (d) Capital clause
Ans: B

95. Which section of the Companies Act 2013 relates to allotment of corporate identify number ?
 (a) Section 7 (4) (b) Section 7 (1)
 (c) Section 7 (2) (d) Section 7 (3)
Ans: D

96. The first annual general meeting of the company must be held
 (a) within 3 months from the date of closing of first financial year of the company.
 (b) within 6 months from the date of closing of first financial year of the company.
 (c) within 9 months from the date of closing of first financial year of the company.
 (d) None of these
Ans: C

97. Which of the following Section of SEBI Act prohibits Insider Trading ?
 (a) Section 12-A (b) Section 13-A
 (c) Section 15-A (d) None of these
Ans: A

98. Information Technology Act, 2000 is commenced from :
 (a) 1 April, 2000 (b) 17 October, 2000
 (c) 8 November, 2000 (d) 17 November, 2000
Ans: B

99. The concept of marketing-mix, consisting of the 4 P’s of marketing, was developed by
(A) E. Jerome McCarthy
(B) Peter F. Drucker
(C) Philip Kotler
(D) William J. Stonton
Ans: A
 
100. The selling concept is most likely to be used by firms which sell
(A) Convenience goods
(B) Shopping goods
(C) Speciality goods
(D) Unsought goods
Ans: D
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      • UPSC INDIAN FOREST SERVICE- SYLLABUS- ANIMAL HUSBANDRY AND VETERINARY SCIENCE
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      • GEN. STUDIES- INDIA PAGE 5
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