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Mode paper :
1. Which of the following presents key aspects of the process of accounting in the correct chronological order?
A) Communicating, recording and identifying
B) Recording, identifying and communicating
C) Recording, totaling and identifying
D) Identifying, recording and communicating

2. Which of the following is not a function of controller?
A) Financial reporting
B) Managerial reporting
C) Money management
D) Cost management

3. Ending finished goods inventory is:
A) Beginning finished goods inventory + cost of goods completed – cost of goods sold
B) Cost of goods completed – cost of goods sold
C) Beginning finished goods inventory + cost of goods completed
D) Beginning finished goods inventory – cost of goods completed + cost of goods sold

4. Which of the following is also known as an inventoriable cost?
A) Period cost
B) Fixed cost
C) Product cost
D) Conversion cost

5. A cost management tool that brings in its focus the activities performed to produce a product is called
A) target costing
B) life cycle costing
C) ABC
D) benchmarking

6. The first Factories Act was enacted in
A) 1881
B) 1895
C) 1897
D) 1885

7. If the date of incorporation of a company is 1/01/2005, the first AGM must be held before
A) 30/06/2006
B) 31/03/2006
C) 31/12/2005
D) 31/03/2005

8. The ‘right to information’ under the RTI Act, 2005 includes the right to
A) Inspect works, documents, records
B) Take notes, extracts or certified copies of documents or records
C) Obtain information in form of printouts, diskettes, floppies, tapes video cassettes or in any other electronic mode or through printouts
D) All of the above

9. Long term capital asset is an asset (other than financial securities) which is held by the assessee for more than
A) 36 months
B) 12 months
C) 24 months
D) 30 months

10. The definition of ‘Goods’ under the Central Sales Tax Act, 1956 does not include
A) Newspapers
B) Standing corps
C) Computer software
D) Animals

11. A rational person does not act unless
A) the action is ethical
B) the action produces marginal costs that exceed marginal benefits
C) the action produces marginal benefits that exceed marginal costs
D) the action makes money for the person

12. When an oligopolist individually chooses its level of production to maximize its profits, it charges a price that is
A) more than the price charges by either monopoly or a competitive market
B) less than the price charges by either monopoly or a competitive market
C) more than the price charges by a monopoly and less than the price charges by a competitive market
D) less than the price charges by a monopoly and more than the price charges by a competitive market

13. Suppose that the government increases its spending by 10 per cent and also increases taxes by 10 per cent. We would expect this policy to
A) Essentially have no effect on the level of national income
B) Have a contractionary effect on national income
C) Decrease the marginal propensity to save out of each extra pound of income
D) Have an expansionary effect on national income.

14. The Government of India has decided to cover all districts of the country in National Rural Employment Guarantee Programme (NREGP)
A) up to January 1, 2008
B) up to March 31, 2008
C) with effect from April 1, 2008
D) with effect from April 1, 2009

15. Reserve Bank of India calculates four components of money supply, M1, M2, M3, M4. Which one of the following statement is not correct?
A) M1 = currency with public + demand deposits with banks
B) M2 = M1 + post office savings deposit
C) M3 = M1 + M2
D) M4 = M3 + total post office deposits

16. What is meant by the term functional management?
A) A system of business organization that is based on an individual having a wide range of skills needed to administer a business
B) A type of management that is based more on personality
C) A system that groups together various jobs and is organized by departments, sections, or functions
D) A system that supports a flat form of command chain

17. Maslow, in his triangle of human needs, showed that
A) Having challenging new tasks is a basic human need
B) Money always motivates workers
C) Safety and security is a low order human need
D) Workers will not give of their best unless they have good social events provided by the firm

18. The purpose of the Malcolm Baldrige National Quality Award is to
A) Stimulate efforts to improve quality
B) Recognize quality achievements of companies
C) Publicize successful quality programs
D) All of the above

19. The process of collecting information about the external marketing environment is
A) Environmental management
B) Environmental scanning
C) Marketing management
D) Marketing scanning

20. The correct components of the 7-S framework are
A) Share values, synergy, systems, strategy, style, staff and structure
B) Standards, strategy, style, staff skills, systems and security
C) Structure, strategy, shared values, style, staff, skills and systems
D) Strategy, synergy, shared value, standardization, skills staff and structure