PSC EXAM ANSWER KEY ACCOUNTANT 25-06-2016

ACCOUNTANT/JR.ACCOUNTANT/ACCOUNTS ASSISTANT ETC.COMPANIES/CORPORATIONS/BOARDS

EXAM DATE:25-06-2016

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1.Zero Based Budgeting is related to whom of the following?

A.Philip Kotler

B.Ronald Reagan

C.Jimmy Carter*

D.Gerald Ford

Ans:C

2.In costing,the sum of direct material direct labour and direct over heads are known as:

A.Basic cost

B.Cost of Product

C.Factory Cost

D.Prime cost*

Ans:D

3.Cost of abnormal idle time is:

A.Credited to Costing P & L Account

B.Debited to Costing P & L Account*

C.Credited to Production Account

D.Debited to Production Account

Ans:B

4.Which one of the following is an uncontrollable cause of material price variance?

A.Change in market price*

B.Inefficient buying

C.Emergence purchase

D.Loss of discount

Ans:A

5.Two or more products,with same importance,produced during a production process is known as:

A.Double Product

B.Joint Product*

C.Two Product process

D.By Product

Ans:B

6.FIFO method is best suited when:

A.Prices are Falling*

B.Prices are Fluctuating

C.Prices are Rising

D.Prices are almost Stable

Ans:A

7.In costing----analysis is used primarily for control of spare parts.

A.ABC

B.Need

C.VED*

D.Cost

Ans:C

8.’Which of the following is true with regards to ‘Bin Card’?

A.It records value only

B.It records value and quantity

C.It records quantity only*

D.None of the above is true

Ans:C

9.Average Stock Level is calculated with which of the following formula:

A.Minimum Stock +1/2 Reorder quantity*

B.Minimum Stock+1/4 Reorder quantity

C.Minimum Stock+Reorder quantity

D.Minimum Stock+(Reorder quantity xReorder Time)

Ans:A

10.What is ‘EOQ’if:Consumption per Year is 600 Units,Carrying Cost is 20%,Ordering Cost is Rs.12.00 per order and Price/Unit is Rs.20?

A.650 Units

B.750 Units

C.600 Units

D.700 Units

Ans:Correct Answer 60 Units

11.Which of the following is/are true with regards to’escalation clause’?

A.It is associated with contract costing

B.Applicable when there is a change in the price of Labour and/or Material

C.Not applicable when there is a Change in the utilization production factors

D.Both A and B above*

Ans:D

12.Special Drawing Right(SDR)is related to which of the following institution?

A.IBRD

B.WTO

C.IMF*

D.GATT

Ans:C

13.In which year the LIC was formed?

A.1962

B.1956*

C.1964

D.1979

Ans:B

14.Which of the following institutions regulate Indian Money Market in India?

A.RBI*

B.IRDA
C.SEBI

D.NBARD

Ans:A
15.Which of the following institution was formed in India with the help of World Bank?

A.IDBI

B.IFCI

C.ICICI*

D.DFHI

Ans:C

16.Name the first mutual fund scheme offered in India:

A.HSBC Equity 5

B.UTI MF Scheme-1

C.SBI Magnum Equity

D.Unit Scheme-64*

Ans:D

17.All,except one,given below be group.longs to a group.Find out one which does not belong to the group

A.International Monetary Fund*

B.The International Development Association

C.The Multilateral Investment Guarantee Agency

D.The International Finance Corporation

Ans:A

18.RBI was established in which year?

A.1938

B.1935*

C.1948

D.1945

Ans:B

19.Of the following,which was the first Development Financial Institution started in India?

A.IDBI

B.NABARD

C.LIC-HFL

D.IFCI*

Ans:D

20.Which of the following insurance company has reinsurance business?

A.LIC of India

B.Oriental Insurance Company Ltd

C.GIC of India*

D.United India Insurance Company Ltd

Ans:C

21.What is the meaning of the Latin word’audire’?

A.To hear*

B.To find

C.To check

D.To note

Ans:A

22.Audit note book is maintained by whom?

A.Client’s clerk

B.Auditor

C.Client

D.Audit clerk*

Ans:D

23.Which of the following statement is most suitable to an ‘audit report’?

A.It is a fault finding report of audit

B.It is a report of errors and frauds

C.It is an opinion of the Auditor*

D.It is always a statutory report

Ans:C

24.As per Indian Companies Act 2013,Section 139,an individual auditor,on appointment shall hold the office for a term of:

A.10 years

B.1 year

C.4 years

D.5 years*

Ans:D

25.On completion of an audit,Audit Working Papers are:

A.Returned to the Client

B.Retained by the Auditor*

C.Submitted along with audit report

D.Destroyed immediately

Ans:B

26.Which of the following statement is wrong with regards to an internal auditor?
A.Has Statutory Powers*

B.Appointed by the Management

C.Is an adviser to Management

D.Can be removed at any time

Ans:A

27.Not recording a transaction in the books of account is treated as an error of:

A.Duplication

B.Omission*

C.Compensating

D.Commission

Ans:B

28.As per Companies Act 2013,remuneration of the first auditor of a company is fixed by whom of the following?

A.Registrar of companies

B.First general body meeting

C.As per rates shown in Act schedule

D.Board of Directors*

Ans:D

29.Who appoint auditor in the case of a Government  company or any other company owned or controlled ,directly or indirectly,by the Government as per Companies Act 2013?

A.Board of Directors

B.Respective Government

C.CAG of India*

D.Regsitrar of Companies

Ans:C

30.Which of the following statement is wrong with regards to internal Check?

A.It a part of internal control

B.it is done by appointed auditor*

C.It is continuous in nature

D.It is to eliminate errors and frauds

Ans:B

31.Following are the names of table of random numbers except:

A.Tippett’s table of random numbers

B.Kendall & Babington Smith numbers

C.Luca’s table of random numbers*

D.Fisher and Yate’s numbers

Ans:C

32.Value of Probability lies between:

A.-1 and +1

B.0 and 1

C.0 and 1,but cannot be 1 or 0 *

D.None of the above

Ans:C

33.Two unbiased coins are tossed .What is the probability of getting at least one tail?

A.3/4*

B.1/2

C.1/4

D.None of the above

Ans:A

34.Which of the following gis the correct expression of regression equation of Y on X?

A.Y_C=a-bX

B.Y_C=a-bX

C.Y_C=a+b+X

D.Y_C=a+bX*

Ans:D

35.The value of ‘No correlation’is:

A.-1

B.0/*

C.+1

D.Cannot be defined

Ans:B

36.Which of the following is not a property of ‘Normal Distribution’?

A.Coefficient of skewness is one*

B.It is bell shaped

C.It is continuous curve

D.Mean,median and mode are equal

Ans:A

37.Which of the following is not a random sampling method?

A.Stratified sampling

B.Systematic sampling

C.Cluster sampling

D.Judgement sampling*

Ans:D

38.Theory of sampling is based on:

A.Principle of ‘Statistical Regularity’

B.Principle of ‘Inertia of Large Numbers’

C.Both A and B above*

D.None of the above

Ans:C

39.In which year the Indian Contract act was passed?

A.1872*

B.1892

C.1912

D.1905

Ans:A

40.Which of the following is not a negotiable instrument?

A.Treasury Bill

B.Share Certificate*

C.Share warrants

D.Rearer Debenture

Ans:B

41.Bank Draft is a:

A.Bill of exchange drawn by a Bank*

B.Negotiable instrument

C.Not a negotiable instrument

D.Type of promissory note

Ans:A

42.Grace period for calculating maturity of a Bill of Exchange as per Act is:

A.3 days*

B.4 days

C.5 days

D.10 days

Ans:A

43.Which of the following Indorsement is not valid under Negotiable Instruments Act 1881?

A.Blank Indorsement

B.Full Indorsement

C.Partial Indorsement*

D.Restrictive Indorsement

Ans:C

44.The ‘Doctrine of Reputed Ownership’is related to which of the following?

A.Contract of Sale of Goods Act

B.Insolvency Acts*

C.Workmen Compensation Act

D.Indian Contract Act

Ans:B

45.Of the following ,which is the formal certificate of dishonor issued by a Notary Public,to the holder of a Bill or Note on his demand?

A.Noting

B.Dishonour Certificate

C.Protest*

D.Discharge Certificate

Ans:C

46.All crossings (drawing two parallel transverse lines,usually on the left hand top corner)on a cheque wih following words between parallel lines are treated as general crossing,except:

A.And Company

B.Not Negotiable

C.& Co.

D.The State Bank*

Ans:D

47.Which of the following is true with  regards to a balance sheet?

A.It shows changes in assets and liabilities of a business during the year

B.It shows position change of a business between two particular dates

C.It shows changes of a business for a particular year

D.It shows position of a business on a particular date*

Ans:D

48.Income received but not earned is:

A.An Asset

B.A Liability*

C.A Contingent Liability

D.None of the above

Ans:B

49.Bank Account is an example of:

A.Real Account

B.Nominal Account

C.Profit Account

D.Personal Account*

Ans:D

50.Unclaimed dividend is shown under which heading in the balance sheet?

A.Current Liabilities*

B.Provisions

C.Reserves and Surpluses

D.Miscellaneous Items

Ans:A

51.Surrender value of Joint life policy is shown as asset in the balance sheet when premium is treated as:

A.An ordinary business expense

B.An investment

C.In both cases A and B above*

D.None of the above

Ans:C

52.In which year the Income Tax Act was passed?

A.1972

B.1968

C.1962

D.1961*

Ans:D

53.Which of the following statement is false with regards to ‘income’ under Income Tax Act?

A.It can be earned illegally

B.It can be irregular or lump sum

C.It can be gift with clear personal element*

D.It can be of any form

Ans:C

54.Which of the following is not a  business expense?

A.Depreciation*

B.Salaries

C.Wages

D.All the above

Ans:A

55.What is meant by the term ‘Adjusted Purchase’?

A.Opening Stock+Purchases

B.Purchase-Purchase Returns

C.Purchase-Discount received

D.Opening Stock+Purchases-Returns*

Ans:D

56.Which one of the following is correct with regards to Budget?

A.It is a functional area of management

B.It is a standing plan

C.It is a multi use plan

D.It is a single use plan*

Ans:D

57.Which of the following is not a technique of scientific management?

A.Scheduling*

B.Standardisation

C.Time Study

D.Motion Study

Ans:A

58.Theory of human motivation(need hierarchy theory)is given by whom?

A.F.W.Taylor

B.Urwick

C.A.H.Maslow*

D.Glueck

Ans:C

59.Who invented ‘Difference Engine’?

A.H.Emerson

B.Gilbreth

C.Mc.Gregor

D.Charles Babbage*

Ans:D

60.Who among the following is treated as founder of ‘Human Relation School’of management?

A.H.A.Simon

B.R.Likert

C.Elton Mayo*

D.C.I.Barnard

Ans:C

61.Which of the following is not a management function as given by H.Fayol?

A.Planning

B.Organising

C.Control

D.Staffing*

Ans:D

62.Which of the following best explains ‘Planning Premises’?

A.Planning environment*

B.Permissions available for planning

C.Resources available for planning

D.Available infrastructure facilities

Ans:A

63.The idea of ‘Functional Foremanship’ of supervision is given by whom?

A.Mary Parker Follett

B.F.W.Taylor*

C.C.Argyris

D.H.Fayal

Ans:B

64.Which is the oldest form of organization?

A.Line and Staff

B.Staff

C.Committee

D.Line*

Ans:D

65.The process that reduce the gap between planning and performance is:

A.Staffing

B.Organising

C.Controlling*

D.Communicating

Ans:C

66.’Order of command that runs from top to bottom’is explained by:

A.Scalar Chain*

B.Unity of Command

C.Unity of Direction

D.Esprit-de-Corps

Ans:A

67.Accountability means what?

A.Doing accounting duty

B.Obligation for the performance of duty*

C.Ability to answer

D.Willingness to perform duty

Ans:B

68.Which of the following primarily means to transfer authority from an individual to another?

A.Delegating*

B.Sharing Responsibility

C.Division of Labour

D.Departmentalisation

Ans:A

69.Who issue Treasury  Bills in India?

A.Government Treasury Department

B.SBI

C.RBI*

D.SEBI

Ans:C

70.Which one of the following is not a right under Consumer Protection Act 1986?

A.Right to be informed

B.Right to protect environment*

C.Right to be heard

D.Right to consumer education

Ans:B

71.Which one of the following is true with regards to cash discount?

A.It is discount on prompt payment*

B.It is discount on price at sales

C.It is discount on price at sales

D.It is a reduction in face value

Ans:A

72.Who,among the following ,is associated with the term ‘Marketing Myopia’?

A.Taylor

B.Philip Kotler

C.Henry Ford

D.Theodore Levitt*

Ans:D

73.Which of the following pricing strategy,the marketer charge maximum price on introducing a new product?

A.Penetration Pricing

B.Skimmed Pricing

C.Going Rate Pricing*

D.Full Cost Pricing

Ans:C

74.-----------is the set of all products and items that a seller offers to sell

A.Product Line

B.Product Mix*

C.Product width

D.Product Length

Ans:B

75.Which of the following do not fall under ‘4Ps’ suggested by McCarthy?

A.Promotion

B.Product

C.Place

D.Perfection*

Ans:D

76.Which of the following concept says that the consumers will favour those products that are available widely at low cost?

A.Production Concept*

B.Selling Concept

C.Product Concept

D.Marketing Concept

Ans:A

77.In ‘ABC’ analysis of stock control,which of the following is true with regards to ‘C’ category goods?

A.They have strict control

B.They have moderate control

C.They have no control

D.They have loose control*

Ans:D

78.Which of the following is the formula to calculate workers wage under Halsey Premium Plan?

A.T x R+%(S-T-R)

B.T x R+% S(T-R)

C.T x R+%(S-T)R*

D.(T-R)x%(S-T)R

Ans:C

79.It said that Batch Costing is an extension of --------Costing.

A.Contract

B.Job*

C.Process

D.Operation

Ans:B

80.The smallest sub-unit of an organization where cost collection is attempted is:

A.Cost Center*

B.Cost Element

C.Cost Unit

D.Cost Department

Ans:A

81.Election commission came into existence in:

A.1951

B.1954

C.1950*

D.1952

Ans:C

82.Who was the first president of the  Nair service society?

A.Mannath Padmanabhan

B.G.P.Pillai

C.K.Kelappan*

D.T.K.Madhavan

Ans:C

83.Who has been appointed as Director General of Police,kerala?

A.Rishiraj Singh

B.Jiji Thompson

C.T.P.Senkumar

D.Jacob Punnus

Ans:------

84.Who started the Bachpan Bachao Andolan?

A.Medha Patkar

B.Malala

C.Kailash Satyarthi*

D.Gopal hari deshmukh

Ans:C

85.The International Boxing Association banned which Indian Boxer for one year for not accepting  her bronze medal at Asian Game 2014:

A.Bala Devi

B.Suil Chetri

C.Sarita Devi*
D.Bhakthi Sharma

Ans:C

86.The Asian Games 2018 will be held at:

A.Doha

B.Dubai

C.Tokya

D.Jakartha*

Ans:D

87.Founder of Travancore muslim Mahagensabha:

A.Makthi Thangal

B.Mampuram Thangal

C.Poikayil Yohannan

D.Vakkom Abdul Khadar Moulavi*

Ans:D

88.Guruvayur satyagraha was in:

A.1930

B.1932

C.1933

D.1931*

Ans:D

89.Siva Temple at Aruvipuram established in:

A.1887

B.1889

C.1880

D.1888*

Ans:D

90.Sahodara Sangam was founded at:

A.Varkala

B.Perunna

C.Sivagiri

D.Cherayi*

Ans:D

91.The first characteristic Malayalam novel is ‘Indulekha’published in:

A.1887

B.1889*

C.1789

D.1888

Ans:B

92.Swadeshibhimani Ramakrishna Pillai was deported from Travancore is:

A.1911

B.1910*

C.1909

D.1931

Ans:B

93.Channar agitation took place during the time:

A.Ayilyam Thirunal

B.Utharam Thirunal*

C.Swathi Thirunal
D.Sreemulam Thirunal

Ans:B

94.’Paschimodayam’was published by:

A.Father Clement
B.Herman Guntert*

C.Thoma Kathanar

D.Gonsalvez

Ans:B

95.The first girls school was started at:

A.Kollam

B.Kottayam

C.Kochi

D.Thiruvanathapuram*

Ans:D

96.’Tatva prakasika ashram’is an educational centre started by:
A.Vagbhatananda*

B.Sahodaran Ayyappan

C.Sree Narayana Guru

D.Ayyankali

Ans:A

97.Author of Kerala Sahitya Charithram:

A.Ullur S.Parameswara Iyer*

B.Vallathol

C.Kumaran Asan

D.P.K.Narayana Pillai

Ans:A

98.Deshabhimani was the newspaper of:

A.T.K.Madhavan

B.Ramakrishna Pillai

C.Vakkom Abdul Khadar Moulavi*

D.C.Krishnan

Ans:C

99.93^rd constitutional Amendment related with:

A.Education*

B.Labour

C.Social Justice

D.Environment

Ans:A

100.The ex-officio chairman of Rajyasabha:

A.Vice President*

B.President

C.Speaker

D.Prime Minister

Ans:A