THE KERALA STATE FINANCIAL ENTERPRISES LIMITED

Promotion Test – Assistant Managers

1. Wages incurred for installing a machine, debited to Wages Account, it is an example of …………….

A. Error of Commission B. Error of omission

C. Error of Principle D. Compensating Error.

2. Writing off preliminary expenses is termed as …………..

A. Depreciation B. Depletion

C. Fluctuation D. Amortization.

3. Returns outwards book is prepared with the help of a document called……………

A. Inward Invoice B .Outward Invoice

C. Debit Note D. Credit Note

4. Cheque issued but not presented for payment involves………...at the time of preparing Bank Reconciliation Statement.

A. Increase in bank balance B. Decrease in bank balance C. Increase in cash book balance D. None of these.

5. ............... principle of accounting, facilitate a business to make provision for unexpected losses in future.

A. Matching B. Consistency

C. Conservatism D. Historical Cost

6. ...................concept is the basis of accounting equation.

A. Going concern B. Accounting Period

C. Duality D. Materiality

7. Profit and Loss Account belongs to..................Account.

A. Real B. Nominal C. Personal D. Capital.

8. The journal entry used for recording Outstanding Expense in to accounts is termed as..............entry.

A. Opening B. Closing C. Adjusting D . Contra.

9. Which one among the following is not a cause of depreciation.

A. Wear & Tear B. Loss on sale

C. Obsolescence D. Fall in market price

A company spent Rs.50000 for advertisement, which yields benefit for future five years including current year.[Answer questions10-12]

10. What type of expenditure is it?

A. Capital expenditure B. Deferred Revenue Expenditure

C. Revenue Expenditure D. Outstanding Expenditure.

11. How much amount is debited to Profit and Loss A/c during the current year, under the head ‘Advertisement“?

A. Rs.50000 B. Rs.10000 C. Rs.40000 D. Rs.20000.

12. How much amount is shown in the Current Year’s closing Balance Sheet ?

A. Rs.20000 B. Rs. 40000 C. Rs.50000 D. Rs.10000.

13. Stock of stationery on - 01-4-2013 – Rs. 400

“ “ - 31-3-2014- Rs.200.

Stationery purchased on 2-05-2013 Rs. 350,

The amount of stationery debited to Profit & Loss A/c is ..............A. Rs.400 B. Rs.200 C.550 D. Rs.350

14. .................. method is used for charging depreciation on loose tools.

A. Fixed Instalment B. Revaluation

C. Diminishing Balance D. annuity.

15. X, a businessman withdrawn goods worth Rs.700 for domestic purpose

From his business. The adjusting entry in this case is..................

A. Drawings A/c Dr. B. Purchases A/c Dr. To Capital A/c To Drawings A/c

C.Drawings A/c D. Purchases A/c Dr.

To Purchases A/c To Capital A/c .

The cash book showed a debit balance of Rs. 3452 on 31-12-2014, it does not agree with bank balance on the same date. On verification of the bank statement the following factors of disagreements were noted.

1. Unpresented cheques Rs.2057. 2. Cheques delivered to bank , not credited Rs.1234.3. Bank Charges debited in Pass book Rs.124.

4. Direct payment by a customer in to bank Rs.7655. As per the pre-instruction from the customer bank paid insurance premium

Rs-1456 and Telephone charges Rs.834.6. A cheque for Rs.890 was sent to the bank for collection , and collected before

31-12-2014, but omitted to record in the cash book.With the help of the above information answer questions 16 to 18.16. What are the items to be added to find out Bank balance ? A. Items 1,3, & 4 B. Items 1,4, & 6 C. Items 1,2, & 6 D. Items 1,2, & 417. What are the items to be substracted to find out bank balance ?

A. Items 2, 4, & 5 C. Items 2, 4 ,& 6

B. Items 2, 3, & 5 D . Items 1, 3, & 5

18. What will be the bank balance on 31-12-2014 ?

A. 3516 B. 3452 C. 3052 D. 3024

19. A co. purchased a machinery on 01-01-2010, for Rs.12000. 10% depreciation is charged on it under diminishing balance method . What will be the loss on sale, if it sold on 31-12-2012, for Rs.10000, and assuming that accounts are closed on 31 st March every year.

A. Rs.400 B.Rs.260 C. Rs.540 D.Rs.300

20. Which one the following errors does not affect the agreement of Trial Balance?

A. Salaries paid Rs.10000, does not posted to salaries Account.

B. Rent paid Rs. 1000 recorded as Rs.10000 and salaries paid Rs.10000, recorded as Rs.1000.

C. Stationery purchased Rs.280, recorded in cash book as Rs.208.

B. Sales day book is undercast by Rs.240 .

Fire occurred in the godown of a Company, on 1st March 2010 and goods worth 12500 were destroyed. The value of stock on 31-03-2010 is Rs.74800. The company follow financial year as their Accounting year. Answer questions 21,22,23.

21. How much amount is debited to Profit & Loss Account if the goods are

not insured ?

A. Rs.74800 B. Rs.12500 C.Rs.87300 D.Rs.62300.

22. How much amount is debited to Profit and Loss, if the goods are insured and the insurance co. admitted a claim of Rs. 7430 ?

A. Rs.12500 B. Rs.7430 C. Rs.5070 D. Rs.62300

23. How this “Insurance claim” is treated in Balance sheet ?

A. Added to ‘cash ‘ in the Asset side.

B. Shown in the asset side.

C. Added with Closing Stock.

D. Deducted from Closing Stock.

24. Accounting Standard 6 [AS -6] deals with...............

A. Valuation of inventories.

B. Accounting for Fixed Assets.

C. Depreciation Accounting.

D. Accounting for Investments.

From the following details answer questions 25 to 29.

Debtors balance as per Trial Balance – Rs. 34000.

Bad debts as per Trial Balance Rs.2800.

Reserve for Bad debts as per Trial Balance- 400.

Further bad debts as per adjustment- Rs.4000.

25. The total amount of Provision for bad debts to be debited to Profit & Loss Account during the year.

A. Rs.2720 B. Rs.2400 C.Rs.340 D.320

26. The actual amount of provision created during the year.

A. Rs. 2400 B. Rs.2000 C. Rs.2800 D.Rs.3120

27. Total bad debts debited to Profit & Loss Account.

A. 4000 B.6800 C. Rs.1200 D. Rs.2400

28. Debtors recorded in Balance Sheet.

A. Rs.27600 B. Rs.32000 C. Rs. Rs.30000 D. Rs.31200.

29. Provision for discount on debtors created and debited to Profit & Loss Account at 5%.

A. Rs.1700 B. Rs.1500 C. Rs.1440 D. Rs.1380.

30. A stationery trader distributed goods worth R.495, from his stock, as free samples to his customers to enhance the goodwill of his firm. The adjusting entry in this case is...........

A. Debit Stationery and Credit cash

B. Debit Stationery and Credit Purchases.

C. Debit Stationery and Credit Drawings.

D. Debit Advertisement and Credit Purchases.

31. How the above adjustment treated in Balance Sheet.

A. Deducted from Closing stock in Asset side.

B. Deducted from capital in the liability side.

C. Added to closing stock in Asset side.

D. No Effect in Balance sheet.

32 .A company engaged in producing Soft drinks, purchased a Machinery for Rs.876500 on Credit from HMT Ltd. Which one of the following special journal is used to record the above transaction?.

A. Cash Book B. Purchases Book C. Sales Day Book. D. Journal proper.

A Company purchased a Machinery for Rs.345000 from Mumbai, on 01-04-2011, on which Rs. 25000 is incurred as Freight, to bring it to the factory site at Cochin, Rs.30000 incurred for erection and electrification of this machinery. Answer questions 33-35.

33. What will be the original cost of machine ?

A. Rs.345000 B. Rs.370000 C. Rs.400000 D. Rs.375000

34. How much depreciation is charged on 31-03 2012, if the expected working life of the machine is 10 Years and Residual value estimated after useful life is Rs.50000.

A. Rs.40000 Rs.29500 Rs.37500 D. 35000.

35. What will be the amount of depreciation charged on 31-03-2012, if 10% depreciation is charged on book value?.

A. Rs.40000 B. Rs. 35000 C. Rs.36500 D.31500.

36. Machinery purchased from Renjith Ltd. For Rs.38000 is recorded in purchase Day Book. What is the rectification entry to rectify this error?

A. Machinery Account Dr. B. Purchases Account Dr.

To Renjith Ltd To Renjith Ltd

C.Machinery Account Dr. D. Renjith Ltd. Dr. Purchases a/c Purchases a/c

37.’ Teetotaller’ means a person :-

A. Interested in drinking Alcohol.

B. Not interested in drinking Alcohol.

C. Not interested in Politics.

D. Interested in Politics.

38. Dogmatism refers to a system where:-

A. Opinions and ideas must be accepted without questioning.

B. Opinions and ideas are questioned.

C. Conflict between two ideologists.

D. Conflict between two religions.

39. The word ‘Malice’ Means;

A. Loving B. Sympathy C. Jealousy D. Hatred.

40. What does ‘couch potato’ mean?

A. One who loves potato

B. One who hates potato

C. One who watches TV always

D. One who likes travelling

41. Which of the following is an antonym of ‘help’?

A. hinder B. abet C. prop up D. backstop

42. Find the odd one out: Explicit, Fuzzy, Definite, Specific

A. Explicit B. Fuzzy C. Definite D. Specific

43. Correct the following sentence: “Lets go for a walk, can’t we?”

A. Let’s go for a walk, shall we?

B. Lets go for a walk, can we?

C. Let’s go for a walk, may we?

D. Let’s go for a walk, may us?

44. Which of the following is an image format?

A. .tiff B. .mpg C. .wma D. .txt (A)

45. Plotter is an

A. Input device B. Output device C. Storage device D. Network device (b)

46. What language does the computer use and understand?

A. High Level B. Assembly C. Machine D. None of the above

47. Which of the following memories is an optical memory?

A. Floppy disk B. Bubble memories C. CD-ROM D. Core memory

48. The first mechanical computer designed by Charles Babbage was called

A. ABACUS B. Analytic engine C. ENIAC D. Processor

49. What is the full form of URL?

A. Uniform Resource Locator

B. Universal Resource Locator

C. Uniform Reverbatory Limitter

D. Universal Remote Locator

50. India’s first super computer is

A. Agni B. Flow solver C. Param D. Trisul

51. Which of the following is not an operating system?

A. Windows B. Linux C. Chrome D. Java

52. Which accounts to a larger amount of memory?

A. 1 GB B. 1 MB C. 1 TB D. 1. KB

53. Which of the following is an IP address?

A. www.kerala.gov.in

B. example@gmail.com

C. 192.168.1.100

D. None of the above

Promotion Test for Manager Post

Paper II

1. Principles of general management are introduced by ;A. F. W. Taylor B. Coontz O’ Donnel C. Henry Fayol D.Peter Drucker.

2. For preparation of fund flow nstatement, Fund denotes:-A. Gross Working Capital C. Qualitative working CapitalB. Quantitative Working Capital D. Liquid cash.

Opening stock Rs.12000, Purchases – Cash -7100, Credit- 41100’ Closing stock is 10% more than opening stock. From these information Answer questions 3 & 4

3. What will be cost of sales?

A. 47000 B. 48400 C. 60200 D. 35000

4.What will be the sales if goods are sold at a profit margin of 20% on sales .

A. 47000 B. 58750 C. 48750 D. 48400

5,............ is an example of Mixed Ratio.

A. Current Ratio C. Debt Equity RatioB. Acid Test Ratio D. Working Capital Turn-Over Ratio.

A company spent Rs.40000 for conducting a Market Survey to modernize their product, from which they expect benefit for future five years including current year. Answer questions 6, 7 and 8.

6, What type of Expenditure is it?A. Capital Expenditure C. Deferred Revenue Expenditure.B. Revenue Expenditure D. None of these.

7. How much amount is debited to Profit and Loss A/c, during the current year?.A. Rs.40000 B. Rs.20000 C. Rs.8000 D. Rs.16000.

8. How much amount is shown in the “ Balance Sheet “ Asset side?A. Rs.10000 B. Rs. 8000 C. Rs. 30000 D. Rs.32000.

Details given. Net Working capital Rs.75000.Reserves and Surplus Rs. 100000.Bank OD Rs. 60000.Current Ratio 1.75: 1

Liquid Ratio 1.15:1 Fixed Assets/Propreitors Fund .75:1Long Term Liabilities - Nil

With the help of above details, answer questions 9-15

9. What will be the amount of share capital of the company?A. Rs.300000 B. Rs.200000 C. Rs.135000 D.Rs.100000

10.What will be the value of Fixed Assets of the Company?A. 225000 B. 200000 C. 300000 D. 100000

11. What will be the amount of closing stock?A. 40000 B. 60000 C. 75000 D. 45000

12. What will be the value of current asset?A. 100000 B. 75000 C. 115000 D. 175000

13.What will be the value of liquid asset?A. 100000 B. 75000 C. 115000 D. 175000

14. The amount of current liabilities will be:A. 40000 B. 60000 C. 75000 D. 45000

15.What will be the total of balance sheet?A. 235000 B. 400000 C. 285000 D. 325000

16.Maslow”s “hierarchy of needs” connected with one of the important function of Management. That is............................

A. Planning B. Controlling c. Motivation D. Organising.

17.The barrier in communication through scalar chain network can be removed through the technique of..................A. Feed back B. Decoding C. Gang Plank D. Motivation.

18.DPC Chart is a device for the performance an important function of management that is.............

A. Planning B. Organizing C. Controlling D. Staffing.19. Zero Base Budgeting, is a technique of Budgeting introduced firstly in........

A. India. B. United States of America C. United Kingdom D. United States of Soviet Russia.

20. Which among the following is not a technique of controlling.

A. Standard costing B. budgetory control C. PERT & CPM D. Cost Volume Profit Analysis.

21.Profit & Loss A/c Dr. Balance 0n 1-04-2012- Rs-120000 “ Cr. Balance On 31-03-2013 Rs-42000Preliminary expenses- Balance 0n 01-04-2014 Rs.40000 “ Balance on 31-03-2014 Rs.32000

A machinery become costing Rs.45000, with an accumulated depreciation of Rs.24500, become obsoleted and discarded for Rs-7650 through a public Auction.Dividend received from a an incorporated company credited to Profit and Loss A/c Rs.3900. What will be the fund from Operation.A. 178950 B. 182000 C. 202000 D.172000

22. Accounting Standard [AS 10} stands for.................A. Accounting for investments .B. Accounting contracts.C. Accounting for Fixed Assets .

D. Valuation of Inventories.23.“Grapevine” is a term which means.......................

A. Output from grape yards C. Network of Formal CommunicationB. Network if Internal communication D. Network of Informal communication.

24.The personnel manager in an Organization, Communicated with a Supervisor in Production department. It is an example of.......................

A. Horizontal Communication B, Diagonal communicationC. Gestural communication D. downward communication.

25.In .....................................pattern of communication the persons at the two extremes interact only with one person and all other members can communicate with two each,

A. Wheel pattern B. All Channel Pattern C, Chain Pattern D. Circle pattern.

26.The composition of long term sources and net worth in the capitalisation of an incorporated undertaking is termed as ......................A. Capital Gearing B. Capital Structure C. Capital budgeting D. Watered

Capital.

27. Given that the current ratio is 2:1. If the net working capital is Rs. 60,600, then the amount of current liabilities is: A. Rs. 30,300 B. Rs. 60,600 C. Rs. 1,21,200 D. Rs. 90,900

28. If opening stock is Rs. 3000, closing stock Rs. 5000, sales Rs. 40,000 and margin 20 percent, then stock turnover is: A. 6 times B. 5 times C. 7 ½ times D. 8 times

29. Which of the following statements is true? A. An increase in current assets decreases working capital B. A decrease in current asset increases working capital

C. A decrease in current liabilities increases working capitalD. An increase in current liabilities increases working capital

30. Writing off an asset means making the WDV (Written Down Value) of the asset Nil but; A. Removing the asset from the stock of assets B. Replacing the asset C. Discarding the asset D. Not removing the asset from the stock of assets.

31. X has an accounting year ending on 31 October. He pays rent quarterly in advance on 1 January, 1 April, 1 July and 1 October. Up until the 30 June 19X7 this was Rs. 3,000 a quarter but on 1 July 19X7 this was raised to Rs. 3,300 per quarter. The charge to the profit and loss account in respect of rent for the year ended 31st October 19X7 is: A. 12,400 B. 12,500 C. 12,600 D. 12,800

32. A trader bought goods for resale on credit for Rs.1,000 in July and paid for them in August. These were sold on credit for Rs. 1,500 in September and the money was received in October. Which of the following statement is true applying the accrual and matching concepts?

A. The cost was incurred in July, the revenue was earned in September and the profit of Rs. 500 arose in September.

B. The cost was incurred in August, the revenue was earned in October and the profit of Rs. 500 arose in October.

C. There was a loss of Rs. 1,000 in July and a profit of Rs.1,500 in September.

D. There was a loss of Rs. 1,000 in August and a profit of Rs. 1,500 in October

33.Which among the following is an element in marketing mix. A. Product. B. Place. C. Promotion. D. Production.

34.Modern marketing is ;A. Producer oriented. B. consumer oriented c. Product Oriented. D. Price oriented.35. When making fresh issue of shares, an existing company may give an option to the existing shareholders, to subscribe shares at a price lower than market value, in proportion to the no. of shares held by them. This system is known as:A. Sweat Equity B. Pre-emptive right c. Private placement D. None of these

36.which among the following do not provide Cash inflow from financing Activities.A.Issue of Shares B. Issue of Debentures C. Borrowing of LoansD. Sale of Fixed Assets.36.A budget prepared for different level of Activities is termed as............. A. Master budget B. Fixed Budget C. Flexible Budget C. Revenue Budget.37. To check whether a transaction Make Flow of fund, the affected accounts are to be analysed. On the basis of the above statement find out which of theFollowing combinations will resut flow of fund.A. One Account affected is current nature and the other is non current nature.B. Both are current nature.C. Both are non current natureD. None of the above.

38. Which among the following is not an element of Scientific management.A.Time Study B. Work study C. Motion study D.. Delegation of Authority.

39. The financial analysts tried to measure the short term solvency of an organization, where there is chances of dead stock due to fashion changes. What will be the appropriate ratio ?A. Current Ratio B. Acid Test Ratio C. Debt-Equity Ratio D. None of these

40. Find out the odd one among the following. A. Debtors Velocity B. Stock Velocity C. Creditors Velocity D. Net Profit Ratio

41. Purchases from Deepu Rs.400 is postd to the debit side of his Account. The rectifying entry will be:

A. Deepu A/c Dr. B. Purchase A/c Dr. C. Suspense A/c Dr. To Purchases To Deepu To Deepu

D.Deepu A/c Dr. To Suspense42. The word Marshalling denotes: A. A programme of Armed Force B. Arrangement of Assets in Balance Sheet. C. Preparation of Balance Sheet of a company. D. Court Activity in Armed Force.43. “ One subordinate One Superior ‘- this management principle is technically termed as:A. Unity of Direction B. delegation of Authority. C. Unity of CommandD. Equity.44.” Espirit De- Corps” is a management principle it implies: A. Unity in Diversity B. Union is strength C. Equal opportunity for all

D. Equal Pay for all45. Which of the statement is correct. A. Fixed cost per unit per unit will remain constant. B. Variable cost per unit will remain constant. C. Total Variable cost remain constant. D. None of these.46. Ways and means budget denotes; A. Cash Budget B. Fixed Budget C. Master Budget D. sales Budget.47. How income tax given in Trial Balance is treated in a one man business? A. Debited to Profit and Loss A/c. B. Shown as Liability in Balance Sheet. C. Deducted from Capital in Balance Sheet. D. None of these.48. Calculate “Cash from Financing Activities” Share Capital- 31-03-2012- Rs.300000 12% Debentures “ Rs-100000 Share Capital 31-03-2013 – Rs.400000 12% Debentures “ Rs.50000 Mortgage Loan repaid during the year Rs-39000A. Cash inflow from financing activities. Rs.11000B. Cash inflow from Financing activities Rs.100000C. Cash outflow from Financing Activities Rs.89000D. Cash outflow from financing Activities. Rs.189000

From the information given below, Answer questions 49 to 57.

Month Cash Credit Cash Credit Expenses Sales Sales Purchases Purchases

Feb-2007 - 60000 90000 45000 80000 20000 March “ 90000 105000 70000 100000 26000 April “ 85000 160000 80000 90000 24000 May “ 70000 110000 75000 100000 30000 June “ 65000 120000 75000 130000 35000

Debtors are allowed one month lag in payment. Creditors velocity is 2 months. Half of expenses for every month paid in the same month Monthly rent payable R.3000, included in expenses. Cash Balance on 01-04-2007 is Rs.4000.49. Collection from debtors during April 2007. A. 90000 B. 105000 C. 160000 D. 16000050. Payment to creditors on May-2007. A. 100000 B. 80000 C.90000 D. None of these.51. Closing Cash balance on April-2007. A.4000 B. 31000 C. 6000 D. 5500.52. Expenses paid during June-2007. A. 25000 B.32500 C. 35000 D. 2700053. Opening Cash balance on July-2007 A. 6000 B. 31000 C. 26500 D. 550054. Collection from Debtors during June-2007 A. 65000 B. 70000 C. 110000 D.10500055. Rent paid for three months period. A. Rs.3000 B. Rs.6000 C.Rs. 9000 D. Rs.12000 56. How much is the amount of expenses paid, in June-2007 if the co. changed the time lag in payment of expenses from half month to same month from first June- 2007. A . Rs.50000 B. Rs.35000 C. 32500 D. 45000 57. The total collection from debtors during the three months from 01-04-2007 to 31-06-2007 is Rs............A. Rs.275000 B. Rs.375000 C. Rs.265000 D. None of these.

58. Which among the following is not a technique of Financial statement analysis .

A. Fund flow analysis B. Ratio Analysis C. Break Analysis D. Trend Analysis.

59. Budgetory Control system is a technique for............

A. Planning, decision making and controlling

B. Controlling and decision making.

C. Controlling .

D. None of these

60. Price Earning Ratio is calculated by considering:

A. Cost price of share and dividend per share.

B. Market price of Equity share and Earnings per share

C. Market price of share and dividend per share

D. Book value of share and Earnings per share.

61. Capital gearing means:

A. The proportion of different sources in total capital employed

B. composition of total Capital.

C. Issue of new shares.

D. Redemption of preference shares.

62. EBIT stands for:

A. Earnings before Tax.

B. Earnings after Tax.

C. Earnings Before payment of Interest and Tax

D. Earnings available to Equity share holders.

Company X Company Y Company X. Debtors Turn over Ratio 12 times 4 Times 6 times

Creditors Turn over ratio 16 times 12 times 9 times

Stock turn over ratio 12 times 9 times 7 times

Current ratio 2:1 1.5:1 2.5:1

Acid test Ratio. 1:1 1.15:1 1.5:1

Earning per share % 25 20 18

Answer questions 63-69

63. Which co. has conservative policy in collecting debtors.

A. X B. Y C. Z D. None of these

64. Which co. has a liberal policy in collecting receivables.

A. Y B. X C. Z D. All companies.

65. Which co. has better stock management.

A. Y B. X C. Z . D. None of these

66. Which co. has better performance and result in operation.

A. Y B. Z C. X. D. Y and Z.

67.Which co, has more stock in their current Assets.

A. Y B. X C. Y and Z D. Z Only

68. Which co. keep standard in short term solvency.

A. x B. Y C. Z. D. None of these.

69. Which co. follow a better credit payment policy.

A. Y B. Z C. X D. All the companies.

70. The effect of credit sales is................ A. Increase in working Capital B. Decrease in working capital C. Decrease in Current Assets. D. No change in Working Capital

71. Rs. 1,800 paid for purchases was posted as Rs. 180 A. Trial balance will balance B. Excess credit of Rs. 1,800 C. Excess credit of Rs. 1,620 D. None of these

72. Rs. 145 paid for servicing the vehicle was posted to the Motor Vehicles account A. Excess debit of Rs. 145 B. Excess credit of Rs. 145 C. Trial Balance will balance D. None of these

73. As per circular No. 32/91, remittance of monthly instalment of the tickets substituted by KSFE should be made by transfer challans on the due date by recording which of the following entries? A. Substituted Chitty Dr Concerned Chitty Cr. B. Foreman’s Investment in Chitty Dr Concerned Chitty Memo Cr. C. Foreman’s Investment in Chitty Dr Substituted Chitty Cr. D. None of the above 74. Cheques issued but outstanding for more than 6 months as on March 31st should be transferred to A. Un-presented cheques account by Debiting Bank account B. Un-presented cheques account by Debiting the concerned customer account C. No entry is needed D. None of the above

75. The entry for profit/loss on sale of fixed asset is

A. Concerned Asset Dr. Depreciation reserve Cr. B. Depreciation Reserve Dr. Profit/Loss on sale Cr. C. Depreciation reserve Dr. Concerned Asset Cr. D. None of the above

The two primary decision-specific qualities that make accounting information useful are: A. Verifiability and representational faithfulness B. Predictive value and feedback value C. Cost effectiveness and materiality D. Relevance and reliability

R & Co sells goods on cash as well as credit basis. The following particulars are extracted from their books of accounts for the Calendar year 2012.

Total Gross sales - Rs. 100,000 Cash Sales (Included in the above) - 20,000 Sales Return - 7,000 Total Debtors as on 31-12-2012 - 9,000

Bill Receivable as on 31-12-2012 - 2,000 The average collection period is closest to: (Assume 360 days in a year) A. 54.25 days B. 60.32 Days C. 49.5 Days D. None of these

Answer Key Assistant Manager Paper II

1. C2. D3. C4. A5. C6. C7. B8. C9. B10. B11. B12. B13. C14. B15. C16. B17. B18. A19. B20 B21. B22. C23. B24. C25. B26. B27. B28. A29 D30. D31. D32. D33. C34. D35. C36. C37. B38. A39. D40. C41. A42. B43. A44. A45. B46. C47. C48. A

ANSWER KEY MANAGER PAPER II

1. C2. C3. A4. B5. D6. C7. C8. D9. B10. A11. B12. D13. C14. A15. B16. C17. C18. C19. B20. D21. A22. C23. D24. B25. C26. B27. B28. B29. C30. D31. C32. A33. D34. B35. D36. C37. A38. D39. B

40. D41. C42. B43. C44. B45. B46. A47. C48. A49. B50. A51. C52. B53. D54. C55. C56. A57. B58. C59. A60. B61. A62. C63. A64. A65. B66. C67. D68. A69. C70. D71. C72. C73. B74. A75. D