TEZPUR UNIVERSITY M.COM MODEL TEST PAPER SECTION A: Accounting & Financial Management.

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1 TEZPUR UNIVERSITY M.COM MODEL TEST PAPER SECTION A: Accounting & Financial Management. 1. Which of the following is not a function of a financial Manager? a. Maneuvering the Share Price b. Procurement of Fund c. Allocation of Fund d. Maintaining balance between Risk and Return 2. Walter s Model suggests for 100% Dividend Payout Ratio when: a. k e = r b. k e < r c. k e = 0 d. k e > r 3. A company has issued, 50,000 ordinary shares of Re. 1 each and 60,000, 5% preference shares of Re. 1 each. If the profit available for dividends are Rs. 5,000 and the firm wishes to give out all available profits as dividends then the amount given out per ordinary share would be a. Re b. Re c. Re d. Re A company buys a Machinery for Rs. 60,00,000, paid in the form of equity shares of 6 lacs with the face value of Rs. 10 each. What is the net outflow of cash in the Investment Activity? a. Rs. 60 lacs b. Rs.6 lacs c. Rs. Nil d. None of the above 5. The cost price of a machine is Rs. 1,20,000 and the depreciated value is Rs. 66,000. If the company charges depreciation under straight-line method, the rate of depreciation will be a. 25% b. 15% c. 18% d. 20%

2 SECTION B: Economics 6. Rs are realized after selling 100 units and Rs are realized after selling 120 Units. In this example, Rs. 200 is? a. Price per unit b. Marginal cost c. Marginal profit d. Marginal revenue 7. Demand is said to be inelastic when: a. the percentage change in quantity demanded is greater than the percentage change in price of a good b. in a linear demand curve, quantity demanded is close to zero (given the price) so that the percentage change in quantity demanded will be very high c. the percentage change in price exceeds the percentage change in quantity demanded of a good d. a relatively small change in price results in a relatively big change in quantity demanded 8. The low point in the business cycle is referred to as: a. Expansion b. Trough c. Boom d. Peak 9. National Income is a. Net National Product Indirect Taxes + Subsidies b. Gross National Product Direct Taxes c. Gross Domestic Product Imports d. Net Domestic Product + Products 10. A perfectly competitive firm should reduce output or shut down in the short run if price is a. Greater than average total cost b. Less than average total cost c. Greater than average variable cost d. Less than average variable cost

3 SECTION C: Business Mathematics and Statistics 11. Which of the following is called an Annuity? a. Lump Sum Payment after few Years b. A series of Equal and Irregular amount c. A series of unequal Amounts d. A series of Equal and Regular Amount 12. Which among the following is a positional average? a. Arithmetic Mean b. Geometric Mean c. Median d. Harmonic Mean 13. Sum of an infinite geometric series exist only if condition on common ratio r is a. 1 < r < 1 b. 1 r 1 c. r < 1, r > 1 d. r 1, r The compounded value, when Rs. 10,000 is invested for 3 years and the interest on it is compounded at 10% p.a. semi-annually, will be a. Rs. 13,000 b. Rs. 13,300 c. Rs. 13,400 d. Rs. 14, The value of coefficient of skewness when the distribution is symmetrical, is: a. +1 b. Zero c. -1 d. Constant

4 SECTION D: Banking, General Management & Insurance 16. In which of the following types of insurance should insurable interest be present only at the time when policy is taken? a. Fire Insurance b. Life Insurance c. Marine Insurance d. Marine and Life Insurance 17. Which of the following statements is not true about continuous audit? a. It is conducted at regular interval b. It may be carried out on daily basis c. It is needed only when the organization has a good internal control system d. It is expensive 18. In line and staff organization, the authority lies in a. Line b. Staff c. Both line and staff d. None of the above 19. deposits combine the features of demand and time deposits. a. Flexi b. Recurring c. Fixed d. Basic Savings Bank 20. In case of a cheque sent for collection from another banker, the banker acts as a till the cheque is realized. a. Trustee b. Debtor c. Agent d. Bailee

5 SECTION E: Business law 21. Every promise and every set of promise forming the consideration for each other is a/an a. contract b. offer c. agreement d. acceptance 22. The property in goods in a contract for sale of specific or ascertained goods, passes to the Buyer when the a. Parties intend the property in goods to pass b. Contract is made c. Price is paid d. Price is due 23. A bank receives a cheque for collection from its customer. Bank gives credit before collection of the cheque. It also allows the customer to withdraw the amount. In such case, the: a. Bank is holder b. Bank is holder for value c. Bank becomes holder in due course d. Bank becomes representative of the drawer 24. The doctrine of caveat emptor emanates from a. The Contract Act b. The Sale of Goods Act c. Partnership Act d. Negotiable Instrument Act 25. A person not being a partner but represents himself to be a partner is called a. Sub Partner b. Sleeping Partner c. Dormant Partner d. Partner by estoppels

6 SECTION F: General Business Awareness: 26. Who among the following is not a member of National Development Council? a. The Prime Minister of India b. The President of India c. The members of Planning Commission d. The Chief Minister of states 27. What is AMFI related to in India? a. Banking b. Mutual Funds c. Marketing & Finance d. Information Technology 28. The Reserve Bank of India used to issue all currency notes except a. One rupee note b. Two rupee note c. Five rupee note d. Ten rupee note 29. Grapevine is a term used in relation to a. Formal Communication b. Informal Communication c. Both Formal and Informal Communication d. informal Motivation 30. The programme MGNREGA is connected with a. Industry b. Transport c. Villages d. Trade

7 ANSWER KEY Ques. Ques. Ques. Ques. Ques. Ques. 1 a 6 d 11 d 16 b 21 c 26 b 2 d 7 c 12 c 17 c 22 a 27 b 3 c 8 b 13 a 18 a 23 b 28 a 4 c 9 a 14 c 19 a 24 b 29 b 5 b 10 d 15 b 20 a 25 d 30 c

FOUNDATION EXAMINATION

FOUNDATION EXAMINATION (SYLLABUS 2008) SUGGESTED ANSWERS TO QUESTIONS JUNE 2012 Paper-2 : ACCOUNTING Time Allowed : 3 Hours Full Marks : 100 The figures in the margin on the right side indicate full marks.