Note: Read the following information to answer questions 1 to 4:
Following are the ratios relating to the trading activities of a company:
Debtors Velocity: 3 Months
Stock Velocity : 4 Months
Creditors velocity: 2 Months
Gross profit ratio : 25%
Gross Profit for the year ended 31st March 2009 amounts to Rs. 2,00,000. Closing stock of the year is Rs. 10,000 above the opening stock. Bill receivable amount to Rs. 30,000 and bills payable are Rs. 10,000.
1.Which among the following represents sales of the company ?
(A)Rs. 600,000
(B)Rs. 800,000
(C)Rs. 900,000
(D)Rs. 700,000
(E)None of them
2.Calculate the Sundry Debtors :
(A)Rs. 170,000
(B)Rs. 230,000
(C)Rs. 200,000
(D)Rs. 160,000
(E)None of them,
3.What will be the closing stock of the company ?
(A)Rs. 195,000
(B)Rs. 205,000
(C)Rs. 390,000
(D)Rs. 200,000
(E)None of them
4.The in above example what will be the Sundry Creditors?
(A)Rs. 101667
(B)Rs. 91667
(C)Rs. 111167
(D)Rs, 50833
(E)None of them
5.Opening Stock 40,000 , Closing stock 60,000 , Annual sales Rs. 600,000 and Gross profit is Rs. 200,000 then what will be the inventory turnover ratio?
(A)6
(B)8
(C)9
(D)10
(E)none of them
6.By making and selling 2500 units of a product a company would suffer a loss of Rs. 5000 , while in the case of 3500 units it would make a profit of Rs. 5000. What will be the break even point of the company? (calculate in Rs.)
(A)Rs. 125,000
(B)Rs. 150,000
(C)Rs. 160,000
(D)Rs. 80,000
(E)None of them
7.In the above example , after selling how many units the company will make a profit of Rs. 30,000 ?
(A)4500 units
(B)5000 units
(C)6000 units
(D)6200 units
(E)6800 units
8.A, B & C are partners in proportion of 3/6, 2/6 and 1/6 respectively. D was admitted in the firm as a new partner with 1/6th share. What will be the new profit sharing ratio of the partners?
(A)15:10:6:4
(B)15:10:5:6
(C)12:10:8:6
(D)15:12:5:6
(E)15:10:6:8
9.On the basis of recommendation of which of the following committees, RBI advised all the scheduled commercial Banks (Other than RRBs) in October 1993 to introduce a system if Concurrent Audit at large and exceptionally large branches?
(A)Abid Hussain Committee
(B)Ghosh Committee
(C)B D Shah Committee
(D)C K rao Committee
(E)None of them
10.The process of issuing American Depository Receipts is a complex one and requires approval at __?
(A)2 stages
(B)3 stages
(C)4 stages
(D)5 stages
(E)none of them
11.A Zero coupon bond means ________?
(A)No discount at face value
(B)No interest payments during currency of bond
(C)No discount and no Interest payments
(D)Face value at par
(E)None of them
12.To compensate the directors and employees, the concept of sweat equity has come into existence for cementing the relations of key managerial personnel in the company. In which year the sweat equity was floated with ordinance (u/s 79A of the companies act 1956?
(A)1988
(B)1995
(C)1998
(D)2000
(E)2002
13.Which among the following is not a condition / characteristic of Open-ended Fund?
(A)There is continuous offering of shares
(B)shares can be redeemed at any time
(C)shares are listed in the stock exchanges
(D)there is no limit to the size of fund
(E)none of them
14.Under which of the acts in India, all Mutual funds should be established?
(A)Negotiable Instruments Act, 1881
(B)Indian Trust Act 1882
(C)Companies act 1956
(D)Indian Stamp Act, 1899
(E)None of them
15.If borrowing are smaller than the capital stock, the company is said to be ___?
(A)Trading on equity
(B)Trading on thick equity
(C)Trading on thin equity
(D)none of them
(E)all of them
16.In which of the following methods of calculating depreciation the value of an asset even if it becomes obsolete and useless can not become zero?
(A)Diminishing balance method
(B)Original cost method
(C)Annuity method
(D)Insurance policy method
(E)None of them
17.Which among the following is not true about provisions in accounting?
(A)they are created to meet an unknown liability
(B)the creation of provision is legal necessity
(C)object of provisions is to provide for depreciation, doubtful debts and other specific liabilities
(D)Provisions can never be invested outside the business
(E)All are true
18.Which among the following is correct about 'promissory Notes" ?
(A)they are three party documents
(B)they are an "order" to make payment
(C)they don't need acceptance
(D)They are drawn by the creditor
(E)None of them is correct
19.Which among the following will be written in the Cr. Side of a P & L A/c?
(A)Gross Loss
(B)Office and Administrative expenses
(C)Miscellaneous Expenses
(D)Other Incomes
(E)None of them
20.Which among the following will be recorded in the debit side of P & L A/c?
(A)Discounts received
(B)Dividend received on shares
(C)Depreciation
(D)Bad debts recovered
(E)profit on sales of assets
kindly provide the steps also so that it is more clear