cpt_more practice-200 questions (2)

CA CPTPractice Series-2 / June 2011

Note: This Practice Series-2 covers 200 questions in all the four subjects. Answer keys are provided at the end.

Section-A : AccountsQ1. Purpose of an accounting system include all the following except

(a) Interpret and record the effects of business transaction. (b) Classify the effects of transactions to facilitate the preparation of reports. (c) Summarize and communicate information to decision makers. (d) Specifies the types of business transactions that enterprises may engage in.

Q2. “Conservatism Concept” recommends the following?(a) Provision for doubtful debts and discount on debtors should be made on the basis of actual bad debts and

discount.(b) The stock-in-trade should be valued at market price or cost price whichever is less. (c) Small capital items, like crockery should be charged to revenue.(d) All of the above.

Q3. Current assets are(a) Assets from which long term benefits are to be derived.(b) Long-term and short-term assets.(c) Cash-in-hand and short-term assets which can be converted into cash within one year.(d) Assets which are currently used in the business.

Q4. Sale of goods to Mohan for cash should be debited to (a) Mohan's Account (b) Cash Account (c) Sales Account (d) None of these

Q5. X Ltd. has Rs.4,500 account receivable from Mr. A. On March 15, Mr. B makes a partial payment of Rs.2,100 on behalf of Mr. A to X Ltd. The journal entry made on March 15 by X Ltd. to record this transaction includes: (a) A credit to the Accounts receivable account of Rs.2,100. (b) A credit to the cash received account of Rs.2,100. (c) A debit to the cash account of Rs.l,400. (d) A debit to the Accounts receivable account of Rs.l,400.

Q6. Mr. X has assets of Rs.7,00,000 and liabilities of Rs.80,000. Owner's equity in this case is:(a) Rs. 7, 80,000.(b) Rs. 7, 00,000.(c) Rs. 6, 20,000.(d) Rs. 80,000.

Q7. In which book of original entry will you record, a bills receivable of Rs. 3,000, which was received from a debtor in full settlement of his claim of Rs. 3,100, is dishonoured?(a) Purchase Book (b) Cash Book (c) Journal Proper (d) Sales Book

Q8. When the debit balance as per cash book is the starting point, cheques issued but not presented to bank will be:(a) Added

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(b) Subtracted(c) Neither of the two(d) Not required to be adjusted

Q9. When the overdraft balance of the pass book is the starting point, cheques deposited but not cleared will be:(a) Added(b) Subtracted(c) Neither of the two(d) Not required to be adjusted

Q10. When favourable balance as per cash book is the starting point, expenses directly paid by bank will be _____ to get the balance as per the Cash Book:(a) Added(b) Subtracted(c) Neither of the two(d) Not required to be adjusted

Q11. Valuation of inventory is dealt with in (a) AS-5 (b) AS-2 (c) AS-3 (d) AS-4

Q12. Cost of inventories includes (a) Direct Material + Direct Expenses (b) Direct Labour + Trade Expenses (c) All costs of purchase, cost of conversion and other costs incurred in bringing the inventories to their

present location and condition. (d) Direct material only.

Q13. When prices are falling which of the following method of inventory valuation will give conservative figure of Gross profit? (a) LIFO (b) FIFO (c) Weighted average (d) Specific identification method

Q14. Depreciation fund method is designed to: (a) Only provide for depreciation of an asset (b) Provide for depreciation as also to accumulate the amount for its replacement (c) Only to save tax.(d) To accumulate the amount of it’s replacement

Q15. A Ltd. Company acquired furniture for Rs. 40,000 with an expected useful life of five years and Rs. 2,000 expected residual value. Straight line method of depreciation was used. The equipment was sold at the end of fourth year for Rs. 15,000. The gain or loss on sale will be (a) Rs. 13,000 (loss) (b) Rs. 7,600 (gain) (c) Rs. 5,400 (gain) (d) None of the above

Q16. A machinery was purchased for Rs. 50,000. The machinery was depreciated @ 20% p.a. on WDV basis for 3 years. If the machinery is sold at a value of Rs. 25,000, the profit and loss account will be debited/ credited by (a) Rs, 600 (Credit) (b) Rs. 5,000 (Credit) (c) Rs. 1,000 (Debit) (d) Rs.600 (Credit)


Q17. Cost of a machinery purchased on 1stApril, 2008 is Rs.50,000.Depreciation is to be provided at the rate of 15% p.a. on SLM .The machinery was sold on 31st December, 2008 for Rs.35,000.Which of the statement given below is correct?(a) Loss on sale of machinery is Rs.9,450(b) Loss on sale of machinery is Rs.9,375(c) Depreciation to be provided for the year 2008-09 is Rs.5,625.(d) Both (b) & (c)

Q18. “Salary to factory workers” will come in:(a) Profit & loss account(b) Trading account(c) Manufacturing account(d) Both (b) and (c)

Q19. The importance of preparing a balance sheet is all of the following except?(a) To ascertain sources and uses of funds(b) To ascertain proprietary ratio(c) To ascertain net distributable profit(d) To ascertain the financial position of an enterprise

Q20. The gain on sale of old machinery is credited to:(a) Old machinery account(b) Trading account(c) Profit and loss account(d) Both (a) and (c)

Q21. The balance of goods sent out on consignment will be transferred to:(a) General profit and loss account(b) General trading account(c) Drawings account(d) None of the above

Q22. Goods costing Rs.2,00,000 sent out to consignee to show a profit of 20% on Invoice price. Invoice price of the goods will be:(a) Rs.3,75,000(b) Rs.3,00,000(c) Rs.2,50,000(d) Rs.3,45,000

Q23. M send out goods costing Rs.50,000 to N at cost + 331/3 %.1/10th of the goods were lost in transit. 2/3rd of the goods are sold at 20% above IP. ½ of the sales are on credit. The amount of credit sales will be:(a) Rs. 36,000(b) Rs. 72,000(c) Rs. 70,000(d) Rs. 75,000

Q24. The profits of the last five years are Rs.20,000; Rs.20,000; Rs.20,000; Rs.46,000; Rs.36,000. Find out the goodwill of 4 years purchase.(a) Rs.6,28,000(b) Rs.1,13,600(c) Rs.1,60,000(d) Rs.1,64,000

Q25. When the incoming partner brings his share of goodwill in cash, it is adjusted by crediting to:(a) His Capitol account


(b) Goodwill account(c) Old partner’s capital accounts(d) Premium Accounts

Q26. If interest on capital is to be allowed as per the agreement, then interest on capital must be calculated with reference to time and it must be calculated on___________(a) Capital in the beginning(b) Capital at the end(c) Average capital employed(d) None of the above

Q27. The excess price received over the face value of shares should be credited to:(a) Calls-in-advance account.(b) Advance capital account.(c) Share premium account.(d) Equity share capital account.

Q28. “Accrued interest on investments” will appear in the balance sheet under which of the following head:(a) Current liabilities(b) Secured loans(c) Investments(d) Current assets; loans and advances

Q29. Partly paid up preference shares cannot be redeemed.(a) True(b) False(c) Partly true(d) Partly false

Q30. Listed company is the company(a) Whose shares and securities are not listed in the recognized stock exchange?(b) Whose shares and securities are listed in the recognized stock exchange.(c) Whose shareholders have unlimited liability.(d) Whose shareholders are having fixed dividend right.

Q31. As per the “Cost Concept”, which of the following should be recorded in the book of accounts of a firm?(a) Quantitative transactions.(b) Skills and knowledge of the Accounts Manager.(c) Qualitative transactions.(d) An asset at its historical cost.

Q32. ________ refer to the general agreement on the usage and practices in social or economic life.(a) Accounting transactions (b) Acct. conventions(c) Accounting Assumptions (d) Principles

Q33. Financial Statements have two primary qualitative characteristics (a) Relevance and reliability.(b) Understandability and materiality. (c) Relevance and understandability. (d) Materiality and reliability

Q34. Which of the following statement is false in context to cash discount? (a) Cash discount is recorded in the books of accounts.


(b) Cash discount is an allowance. (c) Cash discount is an allowance in addition to the trade discount.(d) The main purpose of cash discount is to increase the sales volume.

Q35. Overhaul expenses of second hand machinery purchased Rs.10,000 is: (a) Revenue expenditure.(b) Deferred revenue expenditure.(c) Capital expenditure.(d) None of the above

Q36. An expenditure is revenue in nature, when: (a) It benefits the future period (b) It benefits the current period (c) It belongs to the previous period (d) Both (a) and (c)

Q37. The purchases day book records only: (a) Amount of credit purchases of goods. (b) Quantity of credit purchases of goods. (c) Amount and quantity of credit purchases of goods.(d) None of the above.

Q38. When a favourable balance as per cash book is the starting point, income (e.g interest on investments) directly received by bank will be:(a) Added(b) Subtracted(c) Neither of the two(d) Not required to be adjusted

Q39. When favorable balance as per Pass book is the starting Point, Bank Charges levied by bank will be:(a) Added(b) Subtracted(c) Neither of the two(d) Not required to be adjusted

Q40. When the favorable balance as per Pass book is the starting Point, Income directly received by bank will be:(a) Added(b) Subtracted(c) Neither of the two(d) Not required to be adjusted

Q41. From the following details what is the value of closing stock?Opening stock Rs. 20,000, Purchases Rs. 140,000, Sales Rs. 150,000, Gross profit margin 20% of sales (a) Rs.20,000 (b) Rs. 30,000 (c) Rs. 10,000 (d) Rs.40,000

Q42. Inventory valuation affects (a) Net income (b) Cash now (c) Tax liability (d) Both (a) & (c)

Q43. Inventories are assets: (a) Held for sale in the ordinary course of business


(b) In the production process for such sale (c) In the form of materials or supplies to be consumed in the production process or in the rendering of

service (d) All of the above

Q44. Given that the value of furniture on 1.1.2004 is Rs. 80,000, furniture purchased during the year is Rs. 40,000, sale of furniture on no loss no profit basis is Rs. 20,000 and the furniture is valued at Rs. 70,000 on, 31.12.2009, the depreciation for the year 2004 will be (a) Rs. 20,000 (b) Rs. 30,000 (c) Rs. 50,000 (d) Rs. 40,000

Q45. For charging depreciation the depletion method is adopted for (a) Plant & machinery (c) Goodwill (b) Land & building.(d) Wasting assets like mines and quarries

Q46. Given that the value of furniture on 1.1.2003 is Rs. 90,000, furniture purchased during the year is Rs. 30,000, sale of furniture on no loss no profit basis is Rs. 10,000 and the furniture is valued at Rs. 70,000 on, 31.12.2008, the depreciation for the year 2003 will be (a) Rs. 20,000 (b) Rs. 30,000 (c) Rs. 50,000 (d) Rs. 40,000

Q47. The provision for discount on debtors is calculated on the amount of debtors:(a) Before deducting actual bad debts.(b) Before deducting provision for bad and doubtful debts.(c) Before deducting Sales returns and actual bad debts.(d) Left after deducting the provision on bad and doubtful debts.

Q48. What will be the treatment of additional bad debts if adjustment of it is appearing outside the trial balance?(a) Sundry debtors account will be debited and bad debts account will be credited.(b) Bad debts account will be debited and sundry debtors account will be credited.(c) Bad debts account will be only be debited to profit and loss account.(d) No effect is to be given in account books.

Q49. Revenues of an enterprise are normally measured by the exchange values of the assets or liabilities involved. Any revenue is not recognized until:(a) The revenue is earned and recorded.(b) The revenue is recognized and its realization is assured.(c) The revenue is realized and earned.(d) None of the above

Q50. Sales are equal to: (a) Cost of goods sold + gross profit.(b) Cost of goods sold – gross profit.(c) Cost of goods sold – net profit.(d) Cost of goods sold + net profit.

Section-B : Mercantile Law


Q1. Which of the following statement is not suited to the concept of acceptance? (a) It must be communicated. (b) It must be absolute and unconditional. (c) It must be accepted by a person having capacity to contract. (d) May be presumed from silence of offeree.

Q2. Where the consent of both the parties is given by mistake, the contract is (a) Void (b) Valid (c) Voidable (D) None of the above

Q3. Can a person who is usually of unsound, but occasionally of sound mind, make a contract? (a) Yes, he can always make a contract. (b) Yes, but only when he is of sound mind. (c) Yes, but only when he is of unsound mind.. (d) No, he cannot make a contract

Q4. Factor affecting free consent is(a) Fraud (b) Coercion (c) Undue influence (d) All of above.

Q5. X, by a letter dated 25th December 2007, offers to sell his house to 'Y' for Rs. 50 lakhs, The letter reaches Y on 27th December 2007, who posts his acceptance on 28th December,2007 which reaches X on 30th December 2007. In this case, the communication of offer is complete on (a) 25th December, 2007 (b) 27th December, 2007(c) 28th December, 2007(d) 30th December, 2007.

Q6. An agreement by a newspaper proprietor not to comment on the conduct of a particular person is (a) Opposed to public policy.(b) Not opposed to public policy.(c) Valid.(d) Voidable.

Q7. Rescission of a voidable contract shall be communicated or revoked in the same manner as the communication or revocation of:(a) Proposal(b) Breach(c) Acceptance(d) Impossibility

Q8. The intention for fixing penalty is:(a) Recovery of damages that might arise due to breach(b) To ensure performance of the contract(c) Either (a) or (b)(d) Neither (a) nor (b)

Q9. X agreed to decorate Y’s flat for a lump sum of Rs. 1,00,000. X did the work but Y complained of faulty workmanship. It cost Y Rs. 50,000 to remedy the defects. In this situation, X could recover, from Y Rs. 50,000, i.e., Rs. 1,00,000 less Rs. 50,000:(a) True(b) Partly true(c) False


(d) None of the above

Q10. A contract stands discharged by breach of contract:(a) True(b) False(c) Partly true(d) None of the above.

Q11. Which of the following is not correct(a) Joint Hindu family is governed by Law relating to the registration of the agreement(b) Joint Hindu family is governed by civil procedure court(c) Both a & b(d) None of the above

Q12. Sharing of profit of a business is conclusive evidence of Partnership.(a) True(b) Partly True(c) False(d) None of the above

Q13. A partnership is created:(a) By agreement as well as status;(b) By agreement, express or implied, only;(c) By status only;(d) By express agreement only.

Q14. Intimation to registrar, of a change in constitution of registered firms, may be given by:(a) All the partners or their agents(b) Majority of the partners or their agents(c) All working partners or their agents(d) Anyone partner or their agent

Q15. The court may dissolve a firm if a suit is brought that a partner has become of unsound mind:(a) True(b) False(c) Partly true(d) None of the above

Q16. Where a partner in a firm is adjudicated as insolvent, he ceases to be a partner from the –(a) Day on which the order or adjudication is made(b) First day of the financial year in which the order of adjudication is made(c) Day on which the firms comes to know of his insolvency(d) Day as decided by the registrar of the firms

Q17. An expelled partner continues to be liable for acts of the firm done –(a) Up to the date of the admission of a new partner(b) Up to the date of giving public notice of expulsion(c) Up to the close of the financial year in which he is expelled(d) None of the above

Q18. A partner can be expelled from the firm, if such expulsion is(a) In good faith(b) As given in the contract(c) Exercise by majority of the partners(d) All of the above

Q19. Every partner is bound to attend ............ to his duties, in the conduct of the business.


(a) Systematically(b) Sincerely(c) Diligently(d) Effectively

Q20. The Partnership Act, 1932 deals with(a) Business Collaboration(b) Partnership in General(c) Joint Venture(d) Partnership between individuals

Q21. A contract of sale is made by an (a) Offer to buy only (b) Offer to sell only (c) Offer to buy or sell (d) None of these.

Q22. Buyer not only includes the person who buys but also includes a person who(a) Agrees to buy(b) Show his consent to buy(c) Promise to buy(d) All the above

Q23. The attribute of quality of goods includes a (a) State(b) Condition(c) Price(d) (A) and (B)

Q24. A sold a stolen car to B which was subsequently recovered by the police from B's possession and B was forced to return the same to the true owner. Here, there is breach of implied condition as to (a) Merchantability (b) Fitness for buyer's purpose (c) Title (d) None of these.

Q25. The term 'possession of goods' means (a) Ownership of goods (b) Custody of goods (c) Both (a) and (b) (d) None of these

Q26. Which of the following statement is incorrect in relation to 'sale on approval'? (a) The seller cannot ask for the return of the goods sold. (b) The seller cannot recover the price if the goods are not returned within a reasonable time. (c) The seller can recover the price if the goods are not returned within a reasonable time. (d) The ownership of goods is transferred to the buyer if he fails to return the goods within fixed time or

reasonable time.

Q27. In which of the following cases, an unpaid seller of goods, is entitled to retain the possession until the entire price is paid? (a) Where the goods have been sold without any stipulation as to credit. (b) Where the goods have been sold on credit, but the term of credit has expired. (c) Where the buyer becomes insolvent. (d) All of these.

Q28. What is jus in rem?


(a) Right of buyer to enjoy the goods as against the world at large including the seller(b) Right of the buyer against the seller to sue for damages.(c) Right of the buyer to enjoy the goods only against the seller.(d) None of these

Q29. Fault means(a) Wrongly act(b) Default(c) Both of the above(d) None of the above

Q30. Which one of the following is not true?(a) Document showing title is different from document of title.(b) Bill of lading is a document of title to goods.(c) Specific goods can be identified and agreed upon at the time of the contract of Sale,(d) None of the above

Q31. Implied contract, even if not in writing or express words, is perfectly.......... if other conditions are satisfied.(a) Void(b) Valid(c) Voidable(d) Illegal.

Q32. Discharge of the Contract means that the parties are not further bound by the contract.(a) True(b) Partly true(c) False(d) None of the above

Q33. A contingent agreement based on an impossible event:(a) Is void till the impossibility is known.(b) Becomes void on the knowledge of impossibility.(c) Is void.(d) All of the above.

Q34. Which of the following is the legal requirement of a valid offer? (a) It should be definite and clear. (b) It must be capable of creating legal relationship. (c) It must be communicated to the other party. (d) All of the above.

Q35. A owned two cars one Maruti 800 and the other one is Nano. He offered to sell one car to B. While making offer, A had Maruti in mind. B accepted the offer thinking that it was made for Nano. In this case, no agreement came into existence as there is no (a) Free consent.(b) Consensus ad idem.(c) Jus in personam.(d) Competency to contract.

Q36. Ravi a popular singer enters into a contract with the manager of a theatre, to sing at the theatre two evenings a week for the next two months and the manager of the theatre agrees to pay him at the rate of Rs. 1,000 for each performance. From the sixth evening onwards, Ravi absents himself from the theatre. In this context, which of the following remedies is/are available to the manager of the theatre against Ravi? (a) He is at liberty to put an end to the contract. (b) He is entitled to compensation for the damages sustained by him through Ravi on his failure to sing from

the sixth evening onwards.(c) He cannot put an end to the contract.


(d) Both (a) and (b) above.

Q37. The consideration of an agreement is considered unlawful, if it is (a) Forbidden by law (b) Fraudulent (c) Immoral (4) All of the above

Q38. When the performance of a contract become impossible then the contract become: (a) Void (b) Voidable (c) Valid (d) Unlawful

Q39. Which of the following statement is false? (a) A threat to commit suicide amounts to coercion. (b) Undue influence involves use of moral pressure. (c) Ignorance of law is no excuse. (d) Silence always amounts to fraud.

Q40. If Mr. X obtained the consent of Mr. Y by Coercion, the agreement is voidable at the option of (a) Either party to the agreement (b) At the option of Y (c) At the option of X(d) None of these.

Q41. If any term is not defined in the Partnership Act, reference shall be to:-(a) Evidence Act(b) Sale of Goods act(c) Negotiable Instrument Act(d) Indian Contract Act

Q42. Every partner has a right to take part in the conduct of business(a) True(b) True subject to the contract between parties(c) False(d) None of the above

Q43. Retiring partner continues to be liable for the acts of firm done –(a) Up to the date of admission of a new partner(b) Up to the close of the financial year in which he retires(c) Up to the date of giving public notice of retirement(d) None of the above

Q44. Which of the following words can be used as a part of the firm’s name?(a) Crown(b) Sterling(c) Queen(d) Royal

Q45. In deciding whether or not a partner is guilty of conduct which is likely to affect the carrying on of business of firm prejudicially, regard being had to the nature of the firm’s business (a) True(b) False(c) Partly true(d) None of the above


Q46. Which one of the following is not permissible in a firm’s name?(a) & Co.(b) & Brothers(c) Corporation(d) Associates

Q47. Which one of the following is not applicable for unregistered firms(a) Right of partners to sue the firm for enforcing a right arising out of a contract(b) Right of partners to sue for dissolution of the firm(c) Right of partners to sue for settlement of accounts of a dissolved firm.(d) Right of partners to sue for realising the property of a dissolved firm.

Q48. An unregistered firm suffers from the following disabilities:(a) No suit between the partners and firm;(b) No suit by a firm against a thirds party(c) No claim of set off(d) All of the above

Q49. A major and a minor can create a partnership(a) True(b) Partly true(c) False(d) None of the above

Q50. Where a Partner in a firm is adjudicated as insolvent – (a) The firm is automatically dissolved(b) The Firm is also deemed insolvent(c) The firm becomes an illegal association(d) None of the above

Section-C : EconomicsQ1. Which one of the following statement is correct?

(a) In deductive method logic comes before the fact.(b) Micro and Macro-Economics are interdependent.(c) The economic problems are solved by Planning Commission.(d) Higher the prices lower is the quantity demanded of a product is a normative statement.

Q2. Capital intensive technique would get chosen in a ___________ .(a) Labour surplus economy.(b) Capital surplus economy(c) Developed economy(d) Developing economy

Q3. The slope of production possibility curve is determined by the law of(a) Increasing marginal opportunity cost.(b) Increasing marginal utility.(c) Increasing marginal cost.(d) Increasing marginal returns.

Q4. The following statement is an example of normative statement “The cost of fruits and vegetables should be subsidized by the government to encourage healthy eating”.(a) True


(b) False (c) Partly True (d) Can’t Say

Q5. Other things remaining constant, the law of demand states that:(a) Demand for a commodity is inversely related to its price.(b) As demand rises, price rises.(c) Price is not related to demand.(d) The demand for a commodity depends upon price of related goods.

Q6. The second glass of water gives lesser satisfaction to a thirsty boy. This is a clear case of (a) Law of demand.(b) Law of diminishing returns.(c) Law of diminishing utility.(d) Law of supply.

Q7. A decrease in the demand can be due to: (a) An increase in market price. (b) An decrease in income. (c) An increase in the price of substitutes. (d) An increase in the price of complements.

Q8. There is increase in demand when (a) Less is demanded at the same price(b) More is demanded at a higher price (c) Less is demanded at higher price (d) None of the above

Q9. Under which period “Law of returns to scale” apply?(a) In a very short period.(b) In a short period.(c) In a long period.(d) Very long period.

Q10. The introduction of new product with an additional feature is called (a) Production function.(b) Plant innovation.(c) Product innovation.(d) Process innovation.

Q11. Demand for the production factors is known as (a) Industry demand. (b) Derived demand.(c) Autonomous demand.(d) None of the above.

Q12. If marginal revenue is zero, then total revenue will be the(a) Lowest(b) Negative(c) Highest(d) Zero

Q13. In economic theory, it is assumed that (a) Decision making within the firm is usually undertaken by managers, but never by the owners.


(b) The ultimate goal of the firm is to maximise profits, regardless of firm size or type of business organization.

(c) As the firm size increases, so does its goal. (d) The basic decision making unit of any firm is its owners.

Q14. Supply of a product in _______ is relatively inelastic.(a) Short period(b) Long period(c) Very short period(d) None of the above.

Q15. Product differentiation is the feature of (a) Perfect competition.(b) Monopoly.(c) Oligopoly.(d) Monopolistic competition.

Q16. Which is the apex bank for agriculture credit in India? (a) RBI (b) SIDBI (c) NABARD(d) ICICI

Q17. Which for the following equation is correct? (a) NDP = GDP – Deprecation (b) NDP = GDP + Deprecation(c) NDP = GDP – Deprecation + Subsidy(d) NDP = GDP – Deprecation – Subsidy

Q18. Which of the following statement is incorrect?(a) Indian tax structure relies on a very narrow population base(b) Direct tax are differential, indirect tax are progressive in nature(c) The ratio of Direct taxes to indirect taxes has decreased(d) The total tax revenue is highly in sufficient to meet the expenditure requirement of the economy

Q19. India's share in the world total services export in 2004 was _______ %. (a) 5.2 (b) 1.9 (c) 8.2 (d) 3.5

Q20. India is passing through which stage of Demographic transition?(a) First(b) Second(c) Fourth(d) Fifth

Q21. Non factor inputs are known as(a) Past consumption(b) Present consumption(c) Future consumption(d) Intermediate consumption

Q22. Which of the following is the measuring rod for measuring the operational efficiency of a thermal plant? (a) Power load factor


(b) Power leakage factor(c) Plant load factor (d) Plant leakage factor

Q23. As per Budget 2008-09 the exemption limit for small scale industries has been raised to (a) Rs. 100 lakhs(b) Rs. 125 lakhs(c) Rs. 150 lakhs(d) Rs. 170 lakhs

Q24. ICSID stands for(a) International Center for Settlement of Investment Disputes(b) International Center for Settlement of Income Disputes(c) International Council for Settlement of Investment Disputes(d) International Center for Settlement of Industrial Disputes

Q25. DFEC stands for(a) Duty Free Exchange Credit(b) Duty Free Export Credit(c) Direct Finance Exchange Control(d) Direct Foreign Exchange Control

Q26. There is financing ________ % of imports(a) 80(b) 70(c) 50(d) 60

Q27. The most liquid asset is (a) Government bond.(b) Currency with the public.(c) Shares of the companies. (d) None of the above.

Q28. The general function of commercial bank is(a) Issue of letter of credit.(b) Supplying trade information and statistic.(c) Both (a) and (b).(d) None of the above.

Q29. Which of the following institution can issue currency notes? (a) Reserve bank of India.(b) State bank of India.(c) Industrial Development Bank of India.(d) Industrial Credit Investment Corporation of India.

Q30. Which of the following is generally referred to as a narrow concept of money supply?(a) M1

(b) M2

(c) M3

(d) M4

Q31. In which type of economy does consumers and producers make their choices based on the market forces of demand and supply?


(a) Open economy (b) Controlled economy (c) Command economy (d) Market economy.

Q32. Periods of high unemployment in an economy corresponds to(a) Points that lie on the production possibility curve.(b) Points that lie outside the production possibility curve.(c) Points that lie with in the production possibility curve.(d) None of the above.

Q33. Law of demand is constructed by (a) Inductive Method(b) Reductive Method(c) Verbal Method(d) Geometrical Method

Q34. The term economics is derived from two Greek words, _____ and ______ .(a) Oikou , Nomos(b) Kiyo, Nimas(c) Oikou, Nimas(d) None of the above

Q35. Under marginal utility analysis, higher the utility derived out of a commodity(a) Higher will be the price offered for the commodity(b) Lower will be the price paid for the commodity(c) Price is paid irrespective of utility(d) None of the above

Q36. A consumer is in equilibrium at the points of tangency of his indifference curve and the price line because(a) He does not want to go beyond it.(b) He cannot go beyond it.(c) He cannot go below it.(d) He is confused.

Q37. Inferior goods have (a) Zero income elasticity of demand (b) Negative cross elasticity of demand (c) Negative elasticity of supply(d) Negative income elasticity of demand

Q38. If the price of gasoline (a normal good) decreases, other things constant,(a) The demand for gasoline increases(b) The demand for gasoline decreases(c) The quantity demanded of gasoline increases(d) The quantity demanded of gasoline decreases

Q39. Implicit costs are the costs(a) Which are not incurred by the firm and may accrue to the firm.(b) Of resources owned by the firm.(c) Of resources supplied by the household.(d) Of the services of managers.

Q40. Diminishing returns occurs when the: (a) Units of a variable input are added to a fixed input and total product falls.


(b) Units of a variable input are added to a fixed input and marginal product falls. (c) Size of the plant is increased in the long run. (d) Quantity of the fixed input is increased and returns to the variable input falls.

Q41. Another name of “Law of variable proportion” is(a) Law of increasing return.(b) Law of diminishing return.(c) Law of negative return.(d) None of the above.

Q42. Which of the following is the property of isoquant?(a) Isoquant is downward sloping.(b) Higher isoquant represents higher level of output.(c) Isoquant can never intersect each other.(d) All of the above.

Q43. The short run supply curve of the perfectly competitive firm is given by (a) The rising position of its marginal cost over and above the shut down point.(b) The rising position of its marginal cost over and above the break even point.(c) The rising position of its marginal cost over and above the average cost curve.(d) The rising position of its marginal cost curve.

Q44. An entrepreneur will stay in business in the short run as well as in the long run, if he meets(a) His domestic expenditure.(b) All costs of production.(c) Fixed costs of production.(d) Variable costs of production.

Q45. Entry of the new firm is(a) Absolutely free under monopolistic competition.(b) Not possible under monopoly.(c) Free under monopoly(d) Restricted under perfect competition.

Q46. In perfect competition, which of the following curve is a straight line?(a) Total revenue.(b) Marginal revenue.(c) Total cost.(d) Marginal cost.

Q47. TRYSEM is a programme of(a) Rural development(b) Industrial development(c) Urban development(d) Defence preparedness

Q48. The value added by the industrial sector in the GDP (2006-07) is (a) 26%, (b) 12%. (c) 19%. (d) 32%

Q49. BPO Stands for(a) Bharat Petro Organization


(b) Business Process Outsourcing(c) Big Portfolio Outsourcing(d) Business Partners Organization

Q50. In Inflation(a) Person lending the money gains (b) Person borrowing the money loses(c) No gain on profit to person borrowing and person lending(d) Both (a) and (b)

Section-D : Quantitative Aptitude

Q1. The triplicate ratio of 3 : 2 is (a) 27 : 8 (b) 6 : 9 (c) 3 : 2 (d) None of these

Q2. The simultaneous equations 7x – 3y = 31, 9x – 5y = 41 have solution given by (a) (-4, -1)(b) (-1, 4)(c) (4, -1)(d) (3, 7)

Q3. The solution set of the inequalities x+2< 6 and x -3 >1 is(a) 2<x<4(b) 4<x<2(c) -2<x<-4(d) None of these

Q4. The simple interest on Rs. 5,500 for 5 years at 11 per cent per annum is:(a) 3,015(b) 3,025(c) 3,045(d) 3,075

Q5. The number of proper of divisors of 2520 is(a) 46(b) 52(c) 64(d) None of these

Q6. If a,b,c be the pth, qth and rth term of an A.P. then a(q-r)+b(r-p)+c(p-q) equals(a) a(b) 0(c) B(d) C

Q7. A ball is dropped from a height of 48 ft. and rebounds two third of the distance it falls, if it continues to fall and rebound in this way, how far will it travel before coming to rest?(a) 200 m(b) 240 m(c) 180 m(d) 140 m


Q8. Let f : R to R be such that f(x) = 2x then f(x+y) equals (a) f(x)+f(y)(b) f(x).f(y)(c) f(x)/f(y)(d) None of these

Q9. If , the value of k is

(a) 0(b) – 1/3(c) 2/3(d) – 2/3

Q10. The slope of the tangent to the curve y = at the point where the ordinate and the abscissa are equal is

(a) – 1(b) 1(c) 0(d) None of these

Q11. A club consists of members whose ages are in A.P., the common difference being 3 months. The youngest member of the club is just 7 years old and the sum of the ages of all members is 250 years. The number of members in the club is(a) 15(b) 20(c) 25(d) 30

Q12. Anshul invested Rs.3,000 at simple interest for 3 years and received Rs.4,170. Find the rate of interest.(a) 13%(b) 14%(c) 15%(d) None of these

Q13. The gradient of the curve at is

(e) 3(f) – 3

(g)

(h) None of these

Q14. The slope of the tangent to the curve at the point where the line cuts the curve in the first

quadrant is(a) 2(b) 3(c) – 3(d) None of these

Q15. The value of the integral is

(a) – 2(b) 0(c) 2(d) 4


Q16. Statistics is defined in terms of numerical data in the (a) Singular sense (b) Plural sense (c) Both (a) and (b) (d) Neither (a) nor (b)

Q17. Multiple line charts are applied for (a) Showing multiple charts (b) Two or more related time series when the variables are expresses in the same unit (c) Two or more related time series when the variables are expresses in different unit (d) Multiple variations in the time series

Q18. A man travels at a speed of 20 km/hr and then returns at a speed of 30 km/hr. His average speed of the whole journey is(a) 25 km/hr(b) 24.5 km/hr(c) 24 km/hr(d) None of these

Q19. For a set of 100 observations, taking assumed mean as 4, the sum of the deviations is – 11 cm, and the sum of the squares of these deviations is 275 cm2. The coefficient of variation is (a) 41.13%(b) 42.13%(c) 40.13%(d) None of these

Q20. Rank correlation is useful when we study the relationship between characteristics:(a) Quantitative(b) Qualitative (c) Both (a) and (b)(d) None of the above

Q21. If the curve plotted on a Scatter Diagram is a straight line, it is called the: (a) Line of correlation (b) Line of scatter diagram (c) Line of regression (d) Both (a) and (c)

Q22. A box contains 400 bolts of which 20 are defective. Find the probability that a bolt chosen at random from the box is not defective.(a) 38/40(b) 19/20(c) 9/20(d) Both (a) and (b)

Q23. A candidate is selected for interviews for three posts, for the first post there were 3 candidates, for the second 4 and for the third 2. What is the probability that the candidate is selected for at least one post?(a) 3/4(b) 1/4(c) 1/2(d) 2/3

Q24. Probability distribution may be(a) Continuous


(b) Discrete(c) Finite(d) (a) and (b)

Q25. When x is a binomial variable with parameters n and p, then x can assume(a) Any number between 0 and infinity(b) Any value between 0 and n(c) Any value between 0 and n, both inclusive(d) Any whole number between 0 and n, both inclusive

Q26. If the population standard deviation is known to be 5 for a population containing 80 units, then the standard error of sample mean for a sample of size 25 without replacement is(a) 5(b) 0.20(c) 1(d) 0.85

Q27. A firm wishes to estimate with an error of not more than 0.03 and a level of confidence of 98%, the proportion of consumers that prefers its brand of household detergent. Sales reports indicate that about 0.20 of all consumers prefer the firm’s brand. What is the requisite sample size?(a) 965(b) 975(c) 985(d) 995

Q28. During a certain period the cost of living index number goes up from 110 to 200. The salary of a worker is also raised from Rs.325 to Rs.500. Does the worker really gain & if so, by how much in real income? (a) Yes, Real wages increase by 95.05 (b) No, Real wage decreases by 95.05 (c) No, Real wage decreases by 85.56(d) None of the above

Q29. When the cost of vegetables was increased by 50%, a household , who maintained its former scale of consumption, said that the price had increased their cost of living by 5%.What percentage of their cost of living was due to buying vegetables before the change in price? (a) 12%(b) 10%(c) 13%(d) 5%

Q30. _________ play a very important part in the construction of index no.(a) Estimates(b) Weights(c) Classes(d) None of the above

Q31. Rs. 2430 has been divided among A, B, C in such a way that if their shares are diminished by Rs. 5, Rs. 10 and Rs. 15 respectively, the remainders are in the ratio 3 : 4 : 5. Then A’s share is (a) Rs. 800(b) Rs. 600(c) Rs. 595(d) Rs. 605

Q32. Two equal glasses filled with alcohol and water in the proportion 2:1 and 3:2 are emptied in to a third glass. The proportion of alcohol and water in the third glass will be


(a) 13:17(b) 19:7(c) 13:11(d) 19:11

Q33. The expression log52 is(a) An integer (b) A rational (c) An irrational(d) A prime number

Q34. The integer values of x satisfying the simultaneous inequality 6<(2-3x)<14 are(a) -3,2,1(b) -3,-2,-1(c) -6,-5,-4(d) None of these

Q35. A sum of money doubles itself in 10 years. The number of years it would triple itself is(a) 25 years(b) 15 years(c) 20 years(d) None of these

Q36. Mr. X borrowed Rs.5,120 at 12 ½ % p.a. compound interest at the end of 3 years, the money was repaid along with the interest accrued. The amount of interest paid by him is(a) Rs.2,100(b) Rs.2,170(c) Rs.2,000(d) None of these

Q37. All the letters of the word EAMCET are arranged in all possible ways. The number of such arrangements in which two vowels are not adjacent to each other is(a) 360(b) 114(c) 72(d) 54

Q38. Find the three numbers in G.P. whose sum is 19 and product is 216.(a) 4,6,9(b) 2,3,3(c) 4,5,6(d) None of these

Q39. The number of subsets of the sets {6,8,11} is(a) 9(b) 6(c) 8(d) None of these

Q40. If A has 32 elements , B has 42 elements and AB has 62 elements, the number of elements in AB is(e) 12(f) 74(g) 10(h) None of these

Q41. At x = 3/2 the function f(x) = (12x – 31) / (2x – 3) is(a) continuous


(b) discontinuous(c) limit does not exist(d) none of these

Q42.The gradient of the curve at is(a) 35(b) 55(c) 45(d) 25

Q43. = (a) /4(b) /3(c) /2(d) None of these

Q44. If is

(a)

(b)

(c)

(d) None of these

Q45. For all real x, the minimum value of is(a) 0(b) 1/3(c) 1(d) 3

Q46. The word 'Statistics' comes from: (a) Latin word 'Statistick' (b) German word 'Statics' (c) None of these (d) Stratum

Q47. Primary data is - (a) Estimate of personal income from RBI Bulletin. (b) Financial data of companies taken from Annual Reports (c) Data collected by National Sample Survey (d) Tabulation from Mailed Questionnaires responded

Q48. The average has relevance for(a) Homogeneous population(b) Heterogeneous population(c) Both (a) and (b)(d) None of these

Q49. The sum of the squares of deviations of a set of observations has the smallest value, when the deviations are taken from their


(a) A.M.(b) H.M.(c) G.M.(d) None of these

Q50. Regression Analysis means:(a) Establish a mathematical relationship between two variables(b) Calculating the value of dependent variable for a given value of independent variable(c) Both (a) and (b)(d) None of the above


cpt_more practice-200 questions (2)

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