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This section includes 7 InterviewSolutions, each offering curated multiple-choice questions to sharpen your Current Affairs knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
The main objective of non-profit organisation is - (A) To earn profit (B) To serve the society (C) To prepare profit and loss A/C (D) All the above |
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Answer» Correct option is: (B) To serve the society |
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| 2. |
Receipts and payments Account is a - (A) Personal Account (B) Real Account (C) Nominal Account (D) None of these |
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Answer» Correct option is: (B) Real Account |
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| 3. |
Income and Expenditure Account is prepared(a) By Business Organisation(b) By Industrial Organisation(c) By Not for profit Organisation(d) By all organisation |
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Answer» Income and Expenditure Account is prepared By Not for profit Organisation |
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| 4. |
The ideal of debt-equity ratio is:(a) 1 : 1 (b) 1 : 2 (c) 2 : 1 (d) 3 : 4 |
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Answer» The ideal of debt-equity ratio is 1 : 2 |
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| 5. |
Income and Expenditure Account records :-(A) All cash receipts and payments(B) All credit receipts and payments (C) All cash and credit receipts and payments (D) None of these |
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Answer» Correct option is: (D) None of these |
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| 6. |
Goodwill is - (A) Tangible asset (B) Intangible asset (C) Current asset (D) None of these |
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Answer» Correct option is: (B) Intangible asset |
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| 7. |
Mention a merit and demerit of moving averages method of measuring trend in a time series. |
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Answer» Merit: The method is simple. Demerit: The method does not provide trend values at the beginning and at. the end of the time series. |
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| 8. |
What should be minimum number of person to firm a partnership?(a) 2 (b) 5 (c) 10 (d) 20 |
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Answer» The minimum number of partners in partnership firm is 2. |
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| 9. |
When fixed capital system is adopted, the accounts opened in the books of the firm with respect of Partner’ s account(a) Only capital account(b) Only current accounts(c) Capital and Current accounts(d) None of these |
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Answer» (c) Capital and Current accounts |
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| 10. |
Excess of expenditure over income is known as(a) Profit (b) Loss (c) Deficit (d) Surplus |
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Answer» Excess of expenditure over income is known as Deficit The answer is... Option c(defict) |
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| 11. |
The position of C in MICR, C Stand for MICR(a) Code(b) Colour(c) Computer(d) Character |
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Answer» The position of C in MICR, C Stand for MICR Character |
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| 12. |
Which one of the following is not the feature of partnership ? (A) Agreement (B) Sharing of Profit (C) Limited Liability (D) Two or more than two persons |
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Answer» Correct option is: (C) Limited Liability |
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| 13. |
Not for profit organization prepare(a) Income and expenditure(b) Manufacturing A/c(c) Profit & Loss A/c(d) Trading All |
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Answer» Not for profit organization prepare is Income and expenditure. |
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| 14. |
Consideration of debentures is:(a) Profit(b) Dividend(c) Interest(d) None of these |
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Answer» Consideration of debentures is Interest |
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| 15. |
Read the following statements carefully and choose the correct alternatives given below: Statement 1 – The value of money multiplier is determined by the reserve ratio prevailing in the monetary system. Statement 2 – The process of credit creation directly relates to the value of reserve ratio. Alternatives: a) Both the statements are true. b) Both the statements are false. c) Statement 1 is true and Statement 2 is false d) Statement 2 is true and Statement 1 is false |
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Answer» c) Statement 1 is true and Statement 2 is false |
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| 16. |
The opening balance of partners capital account is credited with :- (A) Interest on capital (B) Interest on drawing (C) Drawings (D) Share in Loss |
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Answer» Correct option is: (A) Interest on capital |
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| 17. |
In the absence of partnership deed, Interest on capital will be given to the partners at - (A) 8% P.A. (B) 6% P.A. (C) 9% P.A. (D) None of these |
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Answer» Correct option is: (D) None of these |
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| 18. |
Arrange the following event in the correct chronological order: i. The year of great divide ii. Establishment of Tata Iron and Steel Company (TISCO) iii. Introduction of Railways in India by the British iv. Opening of Suez Canal Alternatives: a) iv,ii,i,iii b) i,iv,iii,ii c) ii,iii,iv,i d) iii,iv,ii,i |
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Answer» Answer is d) iii,iv,ii,i |
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| 19. |
Demand Deposits include ......... and ...........i. Saving account deposits ii. Fixed depositsiii. Current Account Deposits iv. Post Office Savings Alternatives: a) i and ii b) ii and iii c) i and iii d) i and iv |
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Answer» Answer is (c) i and iii |
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| 20. |
Income and expenditure account is prepared by(a) Not-for profit organisation(b) Business entiry(c) Industrial entity(d) None of these |
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Answer» Income and expenditure account is prepared by Not-for profit organisation |
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| 21. |
Which of the following is not a revenue receipt ? (a) Recovery of loans (b) Foreign Grants (c) Profits of Public Enterprise (d) Wealth Tax |
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Answer» Recovery of loans is not a revenue receipt. |
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| 22. |
Current Account is(a) Personal Account(b) Real Account(c) Nominal Account(d) None of these |
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Answer» Current Account is Personal Account |
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| 23. |
Discount on debentures is shown in the balance sheet on.(a) Assets side(b) Liabilities side(c) (a) (b) Both (a) & (b)(d) None of these |
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Answer» Discount on debentures is shown in the balance sheet on Liabilities side |
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| 24. |
EXIM bank was established in…………… (a) June 1982 (b) April 1982 (c) May 1982(d) March 1982 |
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Answer» (d) March 1982 |
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| 25. |
When all debentures are redeemed, balance in the debentures are redemption fund account is transferred to.(a) Capital reserve(b) General reserve(c) Profit and loss appropriation A/C(d) None of these |
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Answer» (a) Capital reserve |
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| 26. |
Which items are included in Balance of payments ? (a) Visible Items (b) Invisible Items (c) Capital Transfers (d) All the above |
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Answer» (d) All the above |
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| 27. |
The term financial statements includes.(a) Statement of profit & loss(b) Balance sheet(c) Statement of profit & loss and balance sheet(d) None of these |
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Answer» The term financial statements includes Statement of profit & loss and balance sheet |
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| 28. |
As per the Indian Partnership Act 1932, the rate of interest allowed to a loan advanced by partners is ______. (a) 8% p.a. (b) 12%p.a. (c) 5%p.a. (d) 6% p.a. |
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Answer» The correct answer is : (d) 6% p.a. |
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| 29. |
Income and expenditure account is a ________. (a) Nominal A/c (b) Real A/c (c) Personal A/c (d) Representative personal account |
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Answer» (a) Nominal A/c |
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| 30. |
Balance of Receipts and payments account indicates the ________.(a) The loss incurred during the period (b) Excess of income over expenditure of the period (c) Total cash payments during the period (d) Cash and bank balance as on the date |
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Answer» (d) Cash and bank balance as on the date |
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| 31. |
Comparative statements are also known as.(a) Dynamic analysis(b) Horizontal analysis(c) Vertical analysis(d) None of these |
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Answer» Comparative statements are also known as Horizontal analysis |
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| 32. |
Which one is the item of Current Account ? (a) Import of visible items (b) Expenses of tourists (c) Export of visible items (d) All of the above |
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Answer» (d) All of the above |
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| 33. |
Financial analysis is useful.(a) For investors(b) For share holder(c) For debentureholder(d) All the above |
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Answer» (d) All the above |
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| 34. |
By exchange rate, we mean - (a) How much Local Currency we have to pay for a foreign currency (b) How much of a foreign currency we have to pay for another foreign currency (c) The rate at which foreign currency is bought and sold (d) All of these |
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Answer» (d) All of these |
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| 35. |
The word budget has been derived from the French word “bougette” which means:………. (a) A small bag (b) An empty box (c) A box with papers (d) None of the above |
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Answer» (a) A small bag |
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| 36. |
If debenture purchased in open market are not immediately cancelled, they are ? (A) Current Assets (B) Current Liabilities (C) Investment (D) Profits |
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Answer» Correct option is: (C) Investment |
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| 37. |
Premium on Redemption of Debenture A/C is - (A) Personal account (B) Real account (C) Nominal account (D) Suspense account |
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Answer» Correct option is: (D) Suspense account |
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| 38. |
Expand E.P.S. |
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Answer» E.P.S = Earnings per share |
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| 39. |
Comparative statement analysis sheet is __________. A. vertical analysis B. horizontal analysis C. either vertical or horizontal analysisD. neither vertical nor horizontal analysis |
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Answer» B. horizontal analysis |
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| 40. |
Write one objectives of financial statements. |
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Answer» To provide information about economic resources and obligations of a business or any other one. |
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| 41. |
Financial statement are(a) Anticipated Facts(b) Recorded Facts(c) Estimated Facts(d) None of these |
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Answer» Financial statement are Recorded Facts |
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| 42. |
Break-even points refers to that point where(a) Total costs are more than total sales(b) Total Costs are less than total sales(c) Total cost are half of the total sales(d) Total cost are equal total sales |
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Answer» Break-even points refers to that point where Total cost are equal total sales |
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| 43. |
Horizontal analysis is known as(a) Dynamic Analysis(b) Structural Analysis(c) Static Analysis(d) None of these |
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Answer» Horizontal analysis is known as Dynamic Analysis |
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| 44. |
Define static force analysis. |
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Answer» If components of a machine accelerate, inertia is produced due to their masses. However, the magnitude of these forces is small compared to the externally applied loads. Hence inertia effects due to masses are neglected. Such an analysis is known as static force analysis. |
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| 45. |
Differentiate between static & dynamic equilibrium. |
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Answer» Necessary and sufficient conditions for static and dynamic equilibrium are: 1. vector sum of all the forces acting on a body is zero. 2. The vector sum of all the moments of all the forces acting about any arbitrary point or axis is zero. First conditions are sufficient conditions for static equilibrium together with second condition is necessary for dynamic equilibrium. |
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| 46. |
Define applied and constraint force. |
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Answer» The external force acting on a system of body from outside the system is called applied force. The constraint forces are the forces existing internally within the body. |
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| 47. |
Moral suasion refers………… (a) Optimization (b) Maximization(c) Persuasion (d) Minimization |
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Answer» (c) Persuasion |
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| 48. |
Define piston effort. |
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Answer» Piston effort is defined as the net or effective force applied on the piston , along the line of stroke . It is also known as effective driving force or net load on the gudgeon pin. |
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| 49. |
Current account deposits are operated by………. (a) agriculturists (b) business men(c) government servants (d) labourers |
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Answer» (b) business men |
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| 50. |
What is / are factor of production ?(A) Land (B) Labour (C) Captial (D) All these |
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Answer» (D) All these |
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