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Commerce Questions and Answers for Competitive Exams | Commerce Quiz Set 3

Questions
1 Which one of the following equates the present value of cash out flows and the present value of expected cash inflows from a project ?
1 Net Present Value
2 Internal Rate of Return
3 Pay back Period
4 Accounting Rate of Return

Answer: Internal Rate of Return
2 Which one of the following is not true ?
1 Material resources are subject to laws of mechanics and they cannot have an output greater than the input.
2 Human resources are capable of exponential growth and development.
3 Human resources cannot yield an output that may be far greater than what the value of their input warrants.
4 In current scenario, gradually, the emphasis has shifted from muscle power to use of mind power.

Answer: Human resources cannot yield an output that may be far greater than what the value of their input warrants.
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3 The pluralistic approach of industrial conflict is based on which one of the following basic assumption / premise ?
1 That conflict occurs when the tendency of industrial society is to treat worker as an isolated individual and deprive him of all control over his environment
2 That an enterprise contain people with coalition of different interests
3 That industrial conflict is a part of the broader social conflict between classes
4 That no consensus is possible, in case of conflicts, because people are with different socio - cultural backgrounds.

Answer: That an enterprise contain people with coalition of different interests
4 The Job Description Index (JDI) Technique is used for measuring which one of the following ?
1 Job attitudes
2 Job descriptions/definitions
3 Job analysis records
4 Job skill requirements

Answer: Job attitudes
5 What is Hawala ?
1 Tax evasion
2 Bank robbery
3 Illegal trading in stock exchanges
4 Illegal transactions of foreign exchange

Answer: Illegal transactions of foreign exchange
6 Who among the following has given Absolute Advantage Model of international trade ?
1 Adam Smith
2 David Recardo
3 Hackscher Ohlin
4 William Petty

Answer: Adam Smith
7 Which among the following is not an international economic institution ?
1 IMF
2 IBRD
3 ADB
4 IFRS

Answer: IFRS
8 GNP at market prices2Indirect taxes1subsidies is referred to as :
1 GNP at factor cost
2 GDP at factor cost
3 NNP at factor cost
4 NDP at factor cost

Answer: GNP at factor cost
9 EDI system got legal recognition under which one of the following Acts ?
1 Electronics Act, 1996
2 Right to Data Act, 1998
3 DGFT Act, 1999
4 Information Technology Act, 2000

Answer:Information Technology Act, 2000
10 Following statements are related to futures contracts. Choose the statements that are not true :
  • (a) Purchase of a futures contract is called short position.
  • (b) Currency futures are traded on an exchange in standardised form and in fixed quantity.
  • (c) Default risk in futures contract is high compared to forward contract.
1 only (a) and (b)
2 only (a) and (c) (3)
3 (a), (b) and (c)
4 only (b)

Answer: only (a) and (c) (3)
11 Labour Rate of Pay Variance can be calculated by which one of the following equations ?
1 Budgeted Labour Costs2Actual Labour Costs
2 (Standard Hours2Actual Hours)3Actual Wage Rate
3 (Standard Wage Rate2Actual Wage Rate)3Actual Hours Worked
4 (Standard Wage Rate2Actual Wage Rate)3Standard Hours Worked

Answer: (Standard Wage Rate2Actual Wage Rate)3Actual Hours Worked
12 Preparation of consolidated statement of accounts as per AS - 21 is :
1 Optional
2 Mandatory for Private Ltd. Companies
3 Mandatory for Listed Companies
4 Mandatory for all Companies

Answer: Mandatory for Listed Companies
13 Which one of the following is not true of cash Budget ?
1 The shortage or excess of cash would appear in a particular period.
2 All inflows would arise before outflows for those periods.
3 Only revenue nature cash flows are shown.
4 Proceeds from issue of share capital is shown as an inflow.

Answer: Only revenue nature cash flows are shown.
14 When a consumer increases units of X - commodity by giving up some units of Y- commodity and even to attain the same level of satisfaction, the marginal rate of substitution, will be calculated by :
1 Change in X - Commodity divided by change in Y - Commodity
2 Change in X - Commodity divided by marginal utility of Y - Commodity
3 Change in Y - Commodity divided by change in X - Commodity
4 Change in Y - Commodity divided by marginal utility of X - Commodity

Answer: Change in Y - Commodity divided by change in X - Commodity
15 In the short-run, when a simple monopoly firm attains equilibrium and earns only normal profit, its level of output will correspond to :
1 Lowest average cost
2 Average cost above optimum level of output
3 Average cost equals marginal cost
4 Marginal cost much below average cost

Answer: Marginal cost much below average cost

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