PU CET PG 2018 Question PaperM.Com._Honours_

M.Com.(Honours)
1. NAFTA came into force from January, 1994 embracing:
(A) The USA, Canada, Cuba, Brazil (B) The USA, Canada, Mexico
(C) Cuba, Mexico, USA, Havana (D) Trinidad, USA, Mexico

2. The hypothesis testing consists of following steps:
(i)Establish a level of significance, prior to sampling (ii) Defining the rejection or
critical regions
(iii) State the hypothesis (iv) Determination of a suitable test Statistic
Which of the sequence is correct:
(A) (ii),(iii),(iv),(i) (B) (iii), (i), (iv),(ii)
(C) (iii), (ii), (iv), (i) (D) (iv), (iii), (ii), (i)

3. Spearman’s method is the method of calculating coefficient of correlation by:
(A) Irvin Fischer (B) Charles Spearman
(C) Lorenz (D) Karl Pearson

4. The industrial Disputes Act 1947 provides the following industrial relations
machinery for resolution of conflicts except:
(A) Cancelation (B) Arbitration
(C) Negotiations (D) Adjudication

5. The statement “ A Banker is a person or corporation which holds itself out to receive
from the public, deposit payable on demand on cheque.” Is given by:
(A) Fibdlay shirras (B) Kinley
(C) T.G. Hart (D) Walter Leaf

6. Cost of inventories includes:
(A) Direct Martial + Direct Expenses (B) Direct Labour + Direct Expenses

(C) All costs of purchase, cost of (D) Direct material only
conversion and other costs incurred
in brining the inventories to their
present location and condition

7. Which of the following Accounting standards is recommendatory and not mandatory?
(A) AS-1- Disclosure of Accounting (B) AS -2 (Revised) – Valuation of
Polices Inventories
(C) AS – 3- Cash Flow (D) As -4 Contingencies and Events
Statement occurring after the Balance Sheet
date
8. Goodwill should be recorded in the books:
(A) When management is interested (B) When some consideration in
to show goodwill in the books money or money’s worth has been
of accounts. paid for it.
(C) When firms in the same industry (D) When company is going to issue
show goodwill in their books of shares or debentures for public

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accounts. subscription

9. A capital reserve is generally created out of profits or gains of a capital nature.
Which of the following is not a profit or gain of capital
(A) Profit on reissue of forfeited Shares (B) Profit on sale of fixed assets
(C) Profit prior to incorporation (D) Profit on sale of goods

10. Following is the list of assets :
(I)Stock – in – trade (II) Cash in hand (III) Bills Receivable (IV) Debtors (V)
Investments
(VI) Accrued Interest (VII) Advertisement prepaid (VIII) Cash at Bank
What is correct sequence in order of liquidity?
(A) II, VIII, V, IV, III, I, VI, VII (B) I, II, III, IV, V, VI, VII, VIII
(C) II, VII, IV, V, I, III, VI, VIII (D) IV , III, II, I, VIII, VII, VI, V

11. Provision for discount on debtors shall be made on:
(A) Book debt before incurring bad (B) Book debts after incurring bad debt
debt and before providing for bad and after providing for bad debt
debt
(C) Book debts before incurring (D) Book debts after incurring bad
bad debts after providing debts but before providing for bad
For bad debt debt.

12. When an incoming partner purchase his share from one of the existing partners:
(A) The total assets of the firm do not (B) The assets of the firm will be
change augmented to the extent of the
payment received from the new
partner.
(C) The total assets of the firm will be (D) The changes in the total assets of
reduced if the existing partner the firm will depend upon the
withdraws the share surrendered structure of the assets

13. The Power to forfeit shares must be provided in the:
(A) Articles of Association of the (B) Memorandum of Association
company as the Companies Act does
not contain any provision regarding
forfeiture of shares
(C) Registrar of Companies (D) Company Law Board

14. SEBI guidelines require that bonus shares should not dilute the rights of the holders
of debentures, convertible fully or partly. Bonus shares reserved to be issued at the
time of conversion become part of:
(A) Right shares (B) Swear equity shares
(C) Potential equity shares (D) Deferred equity shares

15. Which measure comes under quantitative credit controls adopted by Central Bank of
the Country?
(A) Bank Rate (B) Open Market Operations
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(C) Cash Reserve Ratio (D) All of These

16. The ratio of cash reserves that the banks are required to keep with RBI is known as:
(A) Liquidity Ratio (B) Statutory Liquidity Ratio
(C) Cash Reserve Ratio (D) Net Demand and Time Liabilities

17. Gilt Edged Market means:
(A) Bullion Market (B) Market of Government Securities
(C) Market of Gum (D) Market of Pure Metals

18. The reason in difference between GNP and GDP is:
(A) Gross Foreign Investment (B) Net Foreign Investment
(C) Net Exports (D) Net Factor Income from Abroad

19. Which of the following is the regulator of the commodity Market in India?
(A) NCDEX (B) SEBI
(C) Forward Market Commission (D) MCX

20. The difference between the outflow and inflow of foreign currency is known as:
(A) Foreign Exchange Reserve (B) Current Account Deficit
(C) Fiscal Deficit (D) Balance of Payments

21. Which of the following cannot be called as a debt instrument as referred in the
financial transaction?
(A) Certificate of Report (B) Bonds
(C) Stocks (D) Commercial Papers

22. Amount spent on an advertisement campaign the benefit of which is likely to last for
three years is
(A) Capital Revenue Expenditure (B) Revenue Expenditure
(C) Contingent Expenditure (D) Deferred Revenue Expenditure

23. If the cost of goods sold is Rs. 1,00,00, other operating expenses are Rs. 20,000 and
total net sales are Rs. 1,50,000 the operating Ratio will be:
(A) 70% (B) 80%
(C) 90% (D) 100%

24. Which method of inventory valuation is very useful when prices are falling?
(A) LIFO (B) FIFO
(C) Average Method (D) Base Stock Method

25. Marginal revenue will be zero if the elasticity of demand is:
(A) Zero (B) Greater than One
(C) Equal to One (D) Less than One

26. “Leadership is the activity of influencing people to stress for group objectives” is the
statement given by:
(A) George R. Terry (B) Chester Bernard
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(C) Stephen Robbins (D) Cumming

27. Theory X is a theory of:
(A) Controlling (B) Financial Planning
(C) Motivation (D) Learning

28. Mc Donald’s users a segmentation strategy for its sandwiches based on
characteristics such as age , gender, and income. It is usage which group of
segmentation variables?
(A) Demographics (B) Geographic
(C) Psychographic (D) Behavioral

29. The commission agent is a person who sells goods on the behalf of:
(A) Seller (B) Buyer
(C) Wholesaler (D) Consumer

30. Brand concept does not include:
(A) Packaging (B) Digital Marketing
(C) Brand Personality (D) Brand Equity

31. Formula for net cash inflow of a project is:
(A) Sales – Operating Espouser-Interest (B) Sales - Operating Expenses
- Tax
(C) Net profit after Tax + (D) Stock Exchange Value
Depreciation

32. Creating the capability of Making purchases directly from a firms website is known
as:
(A) Electronic Networking (B) Electronic Transaction
(C) Electronic Data Interchange (D) Electronic Information Transfer

33. Ensuring safety, health and wealth of the employee is the primary purpose of which
one of the following acts
(A) The Factories Act, 1948 (B) The Payment of Wages Act, 1936
(C) The Equal Remuneration Act, (D) The Industrial Disputes Act, 1947
1976

34. If stock turnover ratio is 6 times, Average Stock = Rs. 8000, Selling Prices= 25%
above cost. What is the amount of Gross Profit?
(A) Rs. 2000 (B) Rs. 4000
(C) Rs 10000 (D) Rs. 12000

35. Which of the following is not Probability Sampling Method?
(A) Simple Random Sampling (B) Cluster Sampling
(C) Judgmental Sampling (D) Systematic Sampling

36. In which of the following long term assets, cost indexation benefit is allowed?
(A) Debentures Issued by a Company (B) Self Generated Goodwill of Business

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(C) Bonus Shares Allotted on 1/4/2000 (D) Jewellery
37. Which of the following item would be specifically included in the statement of cash
flows constructed in compliance with AS-3?
(A) Conversion of Debt to Equity (B) Acquiring an Asset Through Lease
(C) Operating and Non Operating cash (D) Purchasing a Building by giving
Flow Information Mortgage
to the Seller
38. Which one of the following is the most popular method for estimating the Cost of
Equity
(A) Capital Asset Pricing Model (B) Dividend Yield Ratio
(C) Gordon Dividend Discount Model (D) Earning Yield Methods

39. Discount on Issue of Shares is:
(A) Revenue Loss (B) Capital Loss
(C) Revenue Profit (D) Capital Profit

40. 50,000 equity shares of Rs. 10 each. Issued at Rs. 20 for the purpose of redemption of
preference shares capital amounting Rs. 75000. How much amount will be
transferred to capital redemption reserve?
(A) Rs. 2,00,000 (B) Rs. 2.50,000
(C) Rs. 5,00,000 (D) RS. 10,00,000

41. Chi- Square is to be applied only. When the individual observation of sample are:
(A) Dependent (B) Independent
(C) Both A and B (D) Neither A or B

42. Which of the following software is used for research analysis?
(A) SAP (B) ERP
(C) SPSS (D) TALLY

43. Violating effect of the Principle “ Unity of Command”
(1) Easy to Fix Responsibility (2) Atmosphere of Cordiality Prevails (3) Difficult to
Fix Accountability (4) Confused Situation for the Subordinates
(A) 1 and 2 (B) 1,3 and 4
(C) 3 and 4 (D) 1 and 3

44. When a company has surplus reserves but does not have adequate liquidity then the
company capitalizes its reserves as :
(A) Bonus Shares (B) Equity Shares
(C) Preference Shares (D) Debt

45. “ Repo Rate” refers to the rate at which:
(A) RBI borrows short term money (B) Bank Keeps the Money with RBI
from the market
(C) Bills are discounted by RBI (D) Forex is Purchased by RBI

46. The type of barriers which are concerned with authority selection, structure, rules
and regulation is called:

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(A) Psychological Barriers (B) Semantic Barriers
(C) Organizational Barriers (D) Personal Barriers

47. The idea behind a capital adequacy ratio is that banking risk should be borne by:
(A) Borrowers (B) Shareholders
(C) Directors (D) Credits

48. Globalization of Financial services is being promoted by:
(A) WTO (B) International Finance Corporation
(C) IBRD (D) IMF

49. SAARC refers to:
(A) South Asian Association for (B) South Asian Association for
Regional Cooperation Regulatory Cooperation
(C) Southern Asian Assembly for (D) South & Asian Association for
Regional Cooperation Regional Cooperation

50. Gross Blocks Means:
(A) The Total Capital Value of the (B) The Block and Building of the firm
Firm
(C) The Written Down Value of (D) The Original Cost of Total fixed
Total Fixed Assets Assets

51. Assets which have a fixed content and value of asset gives down as the contents are
taken out are called:
(A) Intangible Assets (B) Fictitious Asset
(C) Wasting Assets (D) Floating Assets

52. Any act done beyond the scope of abject clause as specified by Memorandum of
Association is :
(A) Obiter Dictum (B) Ultra Vires
(C) Intra Vires (D) San Resource

53. Doctrine of Subrogation is related with:
(A) General Insurance Act,1971 (B) The Sale of Goods Act ,1930
(C) Indian Companies Act, 1956 (D) Indian Contract Act, 1872

54. Which Committee had recommended introduction of Smart Card?
(A) Rangarajan Committee (B) Saraf Committee
(C) Nayak Committee (D) Pannirselvan Committee

55. Which of the following is not an objective of Competition Act, 2002?
(A) Prohibition of Abuse of (B) Prohibition of Restrictive Trade
Dominant Position Practices
(C) Prohibition of Anti – (D) Regulation of Combinations
Competitive Agreement

56. Kyoto Protocol is related to:
(A) Competition (B) Consumer Protection
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(C) Environment Protection (D) Atomic Energy Generation

57. MRTF Act , 1969 was abolished in:
(A) 1991 (B) 2002
(C) 2006 (D) 2008

58. Which Principle has important bearing on the capital –revenue clarification?
(A) Principle of Materiality (B) Principle of Conservatism
(C) Principle of Consistency (D) Principle of Full disclosure

59. The interpretation of physical message into a form that has eventual meaning for a
receiver is called an
(A) Coding (B) Decoding
(C) Recoding (D) Encoding

60. Which of the following is not a network device?
(A) Router (B) Switch
(C) HUB (D) CPU

61. Who is the developer of “ Two Factors Theory” of Motivation:
(A) Herzberg (B) Lawlen, Dand
(C) A.H. Maslow (D) Porter

62. Who developed 4P’s of Marketing?
(A) J.R . Betty (B) Hanson
(C) McCarthy (D) Pete F. Drucker

63. Which is not the Maslow's Needs?
(A) Esteem (B) Control
(C) Self Actualization (D) Social

64. If Coca – cola wished to examine its General Environment before constructing its
business strategy, the company would explore all of the following environments,
except.
(A) Socio Cultural (B) Economic
(C) Political (D) Knowledge

65. Two Mutually exclusive projects with different economic lives can be compared on
the basis of :
(A) Internal Rate of Return (B) Profitability Index
(C) Net Present Value (D) Equivalent Annuity Value

66. Opportunity Cost means:
(A) Cost of a Homogenous Product (B) Cost of the Last Unit
(C) Cost of Next Best Alternative (D) Cost of all units Produced

67. An Example of derived demand is:
(A) Money (B) Cigarette
(C) Car (D) Mobile Phone
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68 Which one of the following is the most appropriate Management Control Technique
for timely completion of a project?
(A) Organization Chart (B) MBO
(C) PERT (D) Span of Control

69. Hawthorne Studies have underlined the significance of which of the following?
(A) System Approach to Management (B) Contingency Approach to
Management
(C) Human Approach to Management (D) Corporate Philosophy

70. Ethical Values are derived from:
(A) Corporate Objection (B) Organizational culture
(C) Religious Scriptures (D) Corporate Philosophy

71. When the merger is mostly financed through debt then it is called:
(A) Hostile Takeover (B) Negotiated Takeover
(C) Two Step Buyout (D) Leveraged Buyout

72. Combination of Printing And Dyeing in a textile company is:
(A) Circular Combination (B) Vertical Combination
(C) Allied Combination (D) Horizontal combination

73. Sexual harassment is unethical because it violates an important part of which
approach to ethical behavior?
(A) The Justice Approach (B) The Moral Right Approach
(C) The Defensive Approach (D) The Individualism

74. TV Channel launched for covering the Engineering and Technology Subject is
known as
(A) Gyan Darshan (B) Vyas
(C) Eklavya (D) Kisan

75. Capital Profits can be distributed as dividend only if:
(1) The Articles of a Company Permit (2) They are Realized in Cash (3) The Surplus
remains after the revaluation of all assets(4) The Capital issues have been written Off
Select the correct answer using the codes given below:
(A) 1, 3 and4 (B) 1 and 4
(C) 2 and 3 (D) 1 ,2, 3 and 4

76. A, B and C were partners sharing profits in the ratio of 3:5:7. C retires and his share
were taken up by A and B in the of 3:2. What is the new ratio?
(A) 13:12 (B) 2:13
(C) 6:7 (D 7:6

77. Which one of the following is correct about margin of safety ratio?
(A) Capital employee/ Net Worth_ (B) Contribution /Sales Value
(C) Operating Profit/ Contribution (D) Contribution/ Sales at break Even

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Point

78. What is the situation referred to as amongst the following, when intra region trade in
duty free but there is variation tariff structure for impact from a third country?
(A) Customs Union (B) Common Market
(C) Free Trade Area (D) Economic Union

79. Arithmetic mean of 98 items is 50. Two items 60 and 70 were left out at the time of
calculation. What will be the correct mean of the entire item?
(A) AM=50.2 (B) AM=50.3
(C) AM=49.9 (D) AM=50.9

80. Which of the following is /are the tools as per the Keynesian economics to stimulate
growth at the twice of recession?
(1)Balance Budget (2) Reduction in Interest Rates (3) Government Investment in
Infrastructure (4) Government deficits.
(A) Only 1 (B) 2&3
(C) 2 and 4 (D) 2,3 and 4

81. In Certainty- equivalent approach, risk adjust cash flows are discounted at:
(A) Accounting Rate of Return (B) Internal Rate of Return
(C) Hurdle Rate (D) Risk – Free Rate

82. Which is the popular term used for the type of option in Foreign Exchange Market
which provides the holder the right to purchase or sell foreign currency at the most
factorable exchange rate realized over the life if the option?
(A) Forward Reversing Option (B) Preference Option
(C) Cook Back Option (D) Basket Option

83. Surcharge is payable by an individual where the total income exceeds?
(A) Rs. 10 lacs (B) Rs. 25 lacs
(C) Rs. 50lac (D) Rs. 1 crore

84. A capital reserve is generally created out of:
(A) Profit on reissue of forfeited Shares (B) Profit on sale of fixed assets
(C) Profit prior to incorporation (D) Profit on sale of goods

85. The Document that established the constitution of the company and how it may run
its affairs is which of the following :
(A) Director’s Contract of Employment (B) Certificate of Incorporation
(C) Memorandum of Association (D) Articles of Association

x-x-x

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