📚 Ph.D. (Commerce) Entrance Exam – 2025 |
Exam Date: 18 May 2025 📝
Prepare with Confidence | Your Gateway to Doctoral Research Begins Here!
🔖 By Mr. Veerendra Kumar
📅 Exam Schedule: Sunday, 18th May 2025
#PhDCommerce2025 #PhDEntranceExam #CommerceResearch #BundelkhandUniversity #ExamSchedule2025 #VeerendraKumarSir #DigitalTrainingInstitute #ResearchAspirants #UGCPhDEntrance #PhDPreparation
👉 Click the Link Below
Detailed Topic-wise & Chapter-wise SyllabusSyllabus Pattern & Examination Scheme
Paper 1: General Studies & Aptitude
Paper 2: Commerce (Subject-Specific)
Second Paper: Commerce
👉 Click the Link Below
Ph.D. Entrance Exam
2025
Commerce – Bundelkhand University, Jhansi
📅 Exam Date: 18 May 2025
📝 Exam Format: 100 MCQs | 200 Marks | Duration: 2
Hours
📘 Syllabus Overview
Part A: Research Methodology (60 MCQs)
·
• Foundations of Research: Meaning, objectives,
types of research.
·
• Research Problem Formulation: Problem
identification, hypothesis, objectives.
·
• Research Design: Exploratory, Descriptive,
Experimental.
·
• Sampling Techniques: Probability and
Non-Probability methods.
·
• Data Collection Methods: Primary &
secondary sources, tools, and techniques.
·
• Scaling & Measurement Techniques: Likert,
Thurstone, Guttman scales.
·
• Statistical Tools: Mean, Median, SD,
Correlation, Regression, Chi-square.
·
• Report Writing: Structure of research report,
referencing styles, plagiarism awareness.
Part B: Commerce Subjects (40 MCQs)
·
• Accounting & Auditing
·
• Financial Management
·
• Marketing Management
·
• Human Resource Management
·
• Business Laws
·
• International Business
·
• Strategic Management
·
• Entrepreneurship Development
·
• Indian Financial System
📅 3-Week Study Planner (Suggested)
·
• Week 1: Research Fundamentals, Research
Design, Sampling, Data Collection.
·
• Week 2: Statistical Tools, Report Writing,
Accounting, Finance, Marketing.
·
• Week 3: HRM, Laws, Strategy, Entrepreneurship,
Mock Tests & Revision.
Prepared by: Mr. VEERENDRA KUMAR
For: Ph.D. Commerce Entrance – BU Jhansi 2025
Paper 1 –
General Studies & Aptitude
🧠
Section 1: General Information (Social, Economic, Political & Current
Issues)
Q1. Which article of the Indian
Constitution guarantees the right to equality?
A) Article 14 ✅
B) Article 19
C) Article 21
D) Article 32
Q2. The NITI Aayog replaced which earlier
planning body?
A) National Development Council
B) Finance Commission
C) Planning Commission ✅
D) Planning Board
Q3. Which Indian state was the first to
implement the Panchayati Raj system?
A) Gujarat
B) Rajasthan ✅
C) Bihar
D) Kerala
Q4. The Goods and Services Tax (GST) came
into effect in India on:
A) 1st April 2016
B) 1st January 2017
C) 1st July 2017 ✅
D) 1st April 2018
Q5. The headquarters of the World Bank is
located in:
A) Geneva
B) Paris
C) New York
D) Washington D.C. ✅
Q6. Which of the following is a direct
tax?
A) GST
B) Income Tax ✅
C) Customs Duty
D) Excise Duty
Q7. The term "minimum support
price" (MSP) is associated with:
A) Manufacturing
B) Real Estate
C) Agriculture ✅
D) Insurance
Q8. The 73rd Constitutional Amendment Act
is related to:
A) Education Policy
B) Panchayati Raj ✅
C) Right to Education
D) Consumer Protection
Q9. Who is known as the "Architect of
the Indian Constitution"?
A) Mahatma Gandhi
B) Jawaharlal Nehru
C) B.R. Ambedkar ✅
D) Sardar Patel
Q10. The G20 Summit 2023 was held in which
Indian city?
A) Mumbai
B) Delhi ✅
C) Bengaluru
D) Ahmedabad
Q11. The ‘Digital India’ programme was
launched in which year?
A) 2014
B) 2015 ✅
C) 2016
D) 2017
Q12. The Chief Election Commissioner of
India is appointed by:
A) Prime Minister
B) Chief Justice
C) President ✅
D) Speaker of Lok Sabha
Q13. ‘Make in India’ initiative mainly
focuses on:
A) Education
B) Industrial Growth ✅
C) Health Sector
D) Digital Awareness
Q14. The term 'Fiscal Deficit' refers to:
A) Total income minus total expenditure
B) Excess of government spending over revenue ✅
C) Revenue from exports
D) Subsidies provided to poor
Q15. Which of the following is a
constitutional body in India?
A) NITI Aayog
B) Planning Commission
C) Election Commission ✅
D) FSSAI
Q16. Which Indian scheme aims to provide
health insurance to poor families?
A) Ujjwala Yojana
B) Ayushman Bharat ✅
C) Digital India
D) Swachh Bharat
Q17. The term “One Nation, One Election”
refers to:
A) Common syllabus across India
B) Simultaneous elections to Lok Sabha and State Assemblies ✅
C) Uniform Civil Code
D) Election of President and PM on same date
Q18. Who is the current Chairperson of NITI
Aayog?
A) Nirmala Sitharaman
B) Amitabh Kant
C) Prime Minister of India ✅
D) Rajiv Kumar
Q19. What is the full form of SEBI?
A) Securities and Exchange Board of India ✅
B) Securities and Economic Board of India
C) Stock Exchange Bureau of India
D) Securities Evaluation Board of India
Q20. Who prepares the Union Budget in
India?
A) President
B) Finance Minister ✅
C) RBI
D) NITI Aayog
Q21. Which of the following is NOT a member
of the G7 group?
A) India ✅
B) Canada
C) France
D) Japan
Q22. Which scheme is aimed at promoting
girl child education in India?
A) Beti Bachao Beti Padhao ✅
B) Sarva Shiksha Abhiyan
C) PM-KISAN
D) National Education Policy
Q23. “Digital Rupee” is launched and
regulated by:
A) SEBI
B) Ministry of Finance
C) Reserve Bank of India ✅
D) State Bank of India
Q24. The National Income of India is
measured by:
A) Planning Commission
B) Ministry of Finance
C) NITI Aayog
D) Central Statistics Office ✅
Q25. The Consumer Protection Act was
updated in:
A) 2019 ✅
B) 2015
C) 2020
D) 2012
Q26. Who has the power to dissolve the Lok
Sabha?
A) Prime Minister
B) President of India ✅
C) Chief Justice
D) Rajya Sabha Speaker
Q27. What is the rank of India in
population globally (as of 2023)?
A) 1st ✅
B) 2nd
C) 3rd
D) 4th
Q28. What is the main objective of the
MGNREGA scheme?
A) Free housing
B) Guaranteed employment for rural poor ✅
C) Pension for elderly
D) Free health care
Q29. Which body conducts the All India
Services Exams (IAS, IPS)?
A) SSC
B) UPSC ✅
C) NTA
D) CBSE
Q30. Which of the following is the upper
house of the Indian Parliament?
A) Lok Sabha
B) Rajya Sabha ✅
C) Vidhan Sabha
D) Legislative Assembly
Q31. What is the next number in the series:
2, 4, 8, 16, ?
A) 18
B) 24
C) 32 ✅
D) 36
Q32. If A = 1, B = 2, ..., Z = 26, what is
the value of "BUNDELKHAND"?
A) 89
B) 94
C) 101
D) 99 ✅
Q33. A train 180 m long is running at 60
km/hr. How long will it take to cross a pole?
A) 10.8 sec ✅
B) 9 sec
C) 12 sec
D) 6 sec
Q34. What is the LCM of 12, 15 and 18?
A) 90 ✅
B) 120
C) 60
D) 180
Q35. Solve: (15% of 200) + (25% of 120) = ?
A) 60
B) 70 ✅
C) 65
D) 75
Q36. What comes next: Z, X, V, T, ?
A) Q
B) R
C) S ✅
D) U
Q37. A man buys a watch for ₹1200 and sells
it at a 10% profit. Selling price = ?
A) ₹1300
B) ₹1320 ✅
C) ₹1250
D) ₹1280
Q38. If ‘RAM’ is coded as ‘SBN’, then
‘LAXMAN’ is coded as?
A) MBYNBO ✅
B) MBXNAO
C) MAXNAO
D) NBYNAO
Q39. Find the odd one out: 64, 125, 216,
343, 729, 800
A) 343
B) 800 ✅
C) 729
D) 125
Q40. A clock shows 3:15. What is the angle
between the hour and the minute hand?
A) 7.5° ✅
B) 15°
C) 22.5°
D) 30°
Q41. If 3A = 2B and 4B = 5C, then A : C = ?
A) 5 : 6
B) 10 : 9
C) 5 : 8 ✅
D) 6 : 5
Q42. A shopkeeper allows a discount of 10%
on the marked price and still makes a profit of 20%. What is the cost price if
the marked price is ₹500?
A) ₹350
B) ₹375 ✅
C) ₹400
D) ₹380
Q43. Which number should come next in the
series? 1, 1, 2, 3, 5, 8, 13, ?
A) 18
B) 20
C) 21 ✅
D) 24
Q44. A cube has how many edges?
A) 8
B) 12 ✅
C) 6
D) 10
Q45. The average of 10, 20, 30, 40 and 50
is:
A) 25
B) 30 ✅
C) 35
D) 40
Q46. What will be the compound interest on
₹5000 for 2 years at 10% p.a. compounded annually?
A) ₹1000
B) ₹1050 ✅
C) ₹1100
D) ₹1025
Q47. Find the missing number:
2, 6, 12, 20, 30, ?
A) 42
B) 44
C) 46 ✅
D) 48
Q48. A person walks at 5 km/h for 2 hours.
Distance covered = ?
A) 10 km ✅
B) 7.5 km
C) 12 km
D) 8 km
Q49. If 7x - 3 = 4x + 6, then x = ?
A) 2
B) 3
C) 4 ✅
D) 5
Q50. In a code, FISH = 6, then BIRD = ?
A) 8
B) 9 ✅
C) 7
D) 6
Q51. If in a certain code, MONDAY is
written as NPMEBZ, how is FRIDAY written?
A) GSJEBZ ✅
B) GSHCBZ
C) GRJCBZ
D) FSKDBZ
Q52. The perimeter of a square is 40 cm.
Find its area.
A) 100 cm²
B) 121 cm²
C) 81 cm²
D) 100 cm² ✅
Q53. Simplify: (3/4) ÷ (6/8)
A) 2/3 ✅
B) 3/2
C) 1/2
D) 1/3
Q54. If A is the brother of B, and B is the
sister of C, what is A to C?
A) Brother ✅
B) Sister
C) Father
D) Cousin
Q55. A person invests ₹10,000 at 5% simple interest
for 4 years. Interest earned = ?
A) ₹1500
B) ₹1800
C) ₹2000 ✅
D) ₹2500
Q56. A clock shows 9:20. What is the angle
between the hour and minute hands?
A) 110°
B) 100°
C) 130° ✅
D) 120°
Q57. Which one is a prime number?
A) 21
B) 31 ✅
C) 33
D) 39
Q58. 144 is divisible by which of the
following?
A) 5
B) 7
C) 12 ✅
D) 11
Q59. A sum of money triples itself in 6
years at simple interest. Rate of interest = ?
A) 20%
B) 25%
C) 30% ✅
D) 35%
Q60. What is the square root of 2025?
A) 45 ✅
B) 40
C) 50
D) 60
Q61. A can do a work in 10 days, B in 15
days. In how many days will they finish the work together?
A) 6
B) 8 ✅
C) 10
D) 12
Q62. Which is the missing letter in the
sequence: A, C, F, J, O, ?
A) T ✅
B) U
C) S
D) V
Q63. If 25% of a number is 30, then the
number is?
A) 100
B) 120
C) 150 ✅
D) 180
Q64. Find HCF of 36 and 60.
A) 6
B) 12 ✅
C) 18
D) 24
Q65. A man sold an item for ₹2400 with a
loss of 20%. Find the cost price.
A) ₹2600
B) ₹2800
C) ₹3000 ✅
D) ₹3200
Q66. If 15 workers complete a job in 10
days, how many workers are required to finish it in 6 days?
A) 25
B) 20
C) 30 ✅
D) 35
Q67. What comes next in the series: 81, 64,
49, 36, ?
A) 25 ✅
B) 20
C) 16
D) 9
Q68. What is the average of first 10
natural numbers?
A) 5
B) 5.5 ✅
C) 6
D) 6.5
Q69. A bag has 5 red and 7 blue balls. What
is the probability of picking a red ball?
A) 5/12 ✅
B) 7/12
C) 1/2
D) 5/7
Q70. The sum of the angles in a triangle
is:
A) 90°
B) 180° ✅
C) 270°
D) 360°
Q71. Water boils at what temperature under
normal atmospheric pressure?
A) 90°C
B) 100°C ✅
C) 110°C
D) 212°C
Q72. Who discovered gravity?
A) Galileo
B) Isaac Newton ✅
C) Albert Einstein
D) James Watt
Q73. Which is the smallest unit of life?
A) Atom
B) Cell ✅
C) Organ
D) Tissue
Q74. The process of converting solid into
gas is called?
A) Condensation
B) Sublimation ✅
C) Evaporation
D) Deposition
Q75. What is H₂O commonly known as?
A) Oxygen
B) Hydrogen
C) Water ✅
D) Salt
Q76. Which planet is known as the Red
Planet?
A) Jupiter
B) Mars ✅
C) Mercury
D) Saturn
Q77. What is the main function of the
heart?
A) Digest food
B) Filter waste
C) Pump blood ✅
D) Make hormones
Q78. Newton is the unit of:
A) Pressure
B) Energy
C) Force ✅
D) Work
Q79. Which gas is most abundant in Earth’s
atmosphere?
A) Oxygen
B) Nitrogen ✅
C) Carbon Dioxide
D) Hydrogen
Q80. Which vitamin is obtained from
sunlight?
A) A
B) B
C) C
D) D ✅
Q81. Who is the author of Discovery of
India?
A) Mahatma Gandhi
B) B. R. Ambedkar
C) Jawaharlal Nehru ✅
D) S. Radhakrishnan
Q82. The term "Cold War" is
associated with which period?
A) Pre-WWI
B) Post-WWII ✅
C) Ancient Period
D) Industrial Revolution
Q83. Who is known as the “Father of the
Indian Constitution”?
A) Jawaharlal Nehru
B) Rajendra Prasad
C) B. R. Ambedkar ✅
D) Sardar Patel
Q84. In which year did India gain
independence?
A) 1945
B) 1946
C) 1947 ✅
D) 1950
Q85. The Revolt of 1857 started in which
place?
A) Meerut ✅
B) Delhi
C) Lucknow
D) Kanpur
Q86. Which is the longest river in India?
A) Ganga ✅
B) Yamuna
C) Godavari
D) Brahmaputra
Q87. Which Indian state has the highest
literacy rate?
A) Kerala ✅
B) Tamil Nadu
C) Maharashtra
D) Goa
Q88. The UN was founded in which year?
A) 1919
B) 1945 ✅
C) 1950
D) 1965
Q89. The main objective of education is:
A) To earn a living
B) To discipline children
C) All-round development ✅
D) To get a job
Q90. Who introduced Basic Education or Nai
Talim?
A) Rabindranath Tagore
B) Aurobindo Ghosh
C) Mahatma Gandhi ✅
D) Dr. Radhakrishnan
Q91. Which commission recommended 10+2+3
pattern in Indian education?
A) Radhakrishnan Commission
B) Mudaliar Commission
C) Kothari Commission ✅
D) Yashpal Committee
Q92. What is pedagogy?
A) Study of language
B) Study of society
C) Art & science of teaching ✅
D) Management of school
Q93. Who is considered the first teacher of
mankind?
A) Socrates
B) Guru Nanak
C) Gautam Buddha
D) Manu ✅
Q94. Which method is best suited for
teaching science?
A) Lecture
B) Demonstration ✅
C) Dictation
D) Memorization
Q95. Bloom’s Taxonomy is associated with:
A) Scientific discoveries
B) Learning outcomes ✅
C) Child psychology
D) Educational administration
Q96. Which is the apex body for school
education in India?
A) NCERT ✅
B) AICTE
C) NCTE
D) UGC
Q97. NCF stands for:
A) National Curriculum Framework ✅
B) National College Federation
C) National Core Faculty
D) National Cultural Forum
Q98. What is the full form of UGC?
A) University General Commission
B) University Grants Commission ✅
C) Union Government Committee
D) University Government Council
Q99. Which Indian educationist gave the
concept of Integral Education?
A) Mahatma Gandhi
B) Swami Vivekananda
C) Sri Aurobindo ✅
D) Rabindranath Tagore
Q100. The Right to Education (RTE) Act was
passed in which year?
A) 2008
B) 2009 ✅
C) 2010
D) 2011
📘
Business Studies – MCQs (Q1–10)
Q1. Management is considered a:
A. Science
B. Art
C. Profession
D. All of the above
Answer: D. All of the above
Q2. The process of setting goals and
deciding how to achieve them is:
A. Organizing
B. Planning
C. Staffing
D. Controlling
Answer: B. Planning
Q3. Which of the following is not a
function of management?
A. Organizing
B. Controlling
C. Co-operating
D. Staffing
Answer: C. Co-operating
Q4. Coordination is:
A. A separate function of management
B. The essence of management
C. A part of staffing
D. Unrelated to management
Answer: B. The essence of management
Q5. Who is known as the "Father of
Scientific Management"?
A. Henry Fayol
B. Peter Drucker
C. F.W. Taylor
D. Max Weber
Answer: C. F.W. Taylor
Q6. Which principle of management states
“One boss for one employee”?
A. Discipline
B. Unity of Direction
C. Unity of Command
D. Scalar Chain
Answer: C. Unity of Command
Q7. The concept of "Espirit De
Corps" refers to:
A. Centralization
B. Discipline
C. Team Spirit
D. Authority
Answer: C. Team Spirit
Q8. A structure that defines roles,
responsibilities, and authority is called:
A. Staffing
B. Planning
C. Organizing
D. Controlling
Answer: C. Organizing
Q9. Which one of the following is not a
type of organizational structure?
A. Functional
B. Divisional
C. Matrix
D. Inverted
Answer: D. Inverted
Q10. Who gave the 14 principles of
management?
A. Elton Mayo
B. Henry Fayol
C. Koontz and O’Donnell
D. Mintzberg
Answer: B. Henry Fayol
📘
Accounting – MCQs (Q11–25)
Q11. The main objective of financial
accounting is:
A. To maintain records of business
B. To ascertain profit or loss
C. To ascertain financial position
D. All of the above
Answer: D. All of the above
Q12. The accounting equation is:
A. Assets = Capital – Liabilities
B. Assets = Liabilities – Capital
C. Assets = Liabilities + Capital
D. Assets = Income – Expenses
Answer: C. Assets = Liabilities + Capital
Q13. Which concept assumes that business
will continue for a long period?
A. Accrual Concept
B. Going Concern Concept
C. Conservatism Concept
D. Dual Aspect Concept
Answer: B. Going Concern Concept
Q14. Outstanding wages is:
A. An asset
B. A liability
C. An expense
D. Income
Answer: B. A liability
Q15. Depreciation is charged on:
A. Current Assets
B. Fixed Assets
C. Intangible Assets
D. All assets
Answer: B. Fixed Assets
Q16. The system of recording transactions
both in debit and credit is called:
A. Double Entry System
B. Single Entry System
C. Cash System
D. Accrual System
Answer: A. Double Entry System
Q17. Which book is used to record credit
purchases?
A. Purchase Book
B. Sales Book
C. Cash Book
D. Journal Proper
Answer: A. Purchase Book
Q18. Trial Balance is prepared to:
A. Know the financial position
B. Know the profit
C. Check arithmetical accuracy
D. All of the above
Answer: C. Check arithmetical accuracy
Q19. Revenue is generally recognized at the
time when:
A. Cash is received
B. Sale is made
C. Order is received
D. Goods are produced
Answer: B. Sale is made
Q20. Which of the following is not a real
account?
A. Building
B. Goodwill
C. Machinery
D. Salaries
Answer: D. Salaries
Q21. Bank Reconciliation Statement is
prepared to:
A. Find the bank balance
B. Know the causes of difference
C. Find profit
D. Ascertain liabilities
Answer: B. Know the causes of difference
Q22. An account that is prepared at the end
of the financial year to ascertain net profit or loss is:
A. Balance Sheet
B. Trading Account
C. Profit and Loss Account
D. Trial Balance
Answer: C. Profit and Loss Account
Q23. The process of allocating the cost of
a tangible asset over its useful life is called:
A. Amortization
B. Valuation
C. Depreciation
D. Depletion
Answer: C. Depreciation
Q24. Income received in advance is a:
A. Current Asset
B. Current Liability
C. Long-term Liability
D. Fixed Asset
Answer: B. Current Liability
Q25. Which one of the following is a
fictitious asset?
A. Building
B. Goodwill
C. Prepaid Rent
D. Preliminary Expenses
Answer: D. Preliminary Expenses
📘
Business Law – MCQs (Q26–35)
Q26. The Indian Contract Act, 1872, deals
with:
A. General principles of law of contract
B. Sale of Goods
C. Partnership
D. All of the above
Answer: D. All of the above
Q27. Which of the following is not a valid
contract?
A. Agreement made under coercion
B. Agreement made by mutual consent
C. Agreement made with a minor
D. Agreement made under free will
Answer: C. Agreement made with a minor
Q28. A contract that is legally
unenforceable due to the absence of a lawful object is:
A. Void Contract
B. Voidable Contract
C. Valid Contract
D. Unilateral Contract
Answer: A. Void Contract
Q29. The term "Contract of
Guarantee" refers to:
A. A promise to perform a contract
B. A promise to pay a debt in case of default
C. A promise to sell goods
D. None of the above
Answer: B. A promise to pay a debt in case of default
Q30. The essential feature of a
"Breach of Contract" is:
A. The contract must be valid
B. A party refuses to perform the contract
C. The contract must be executed
D. The contract must be voidable
Answer: B. A party refuses to perform the contract
Q31. The Indian Sale of Goods Act, 1930,
primarily deals with:
A. Sale of goods and the rights of buyers and sellers
B. Partnership between traders
C. Intellectual property rights
D. Banking transactions
Answer: A. Sale of goods and the rights of buyers and sellers
Q32. A contract is considered valid only
if:
A. It is in writing
B. It is signed by both parties
C. Both parties offer something of value
D. It is registered with the government
Answer: C. Both parties offer something of value
Q33. Which section of the Indian Contract
Act, 1872, defines "Contract"?
A. Section 1
B. Section 2
C. Section 10
D. Section 12
Answer: B. Section 2
Q34. Under the Negotiable Instruments Act,
1881, a cheque is:
A. A bill of exchange
B. A promissory note
C. A negotiable instrument
D. A contract
Answer: C. A negotiable instrument
Q35. The Payment of Bonus Act, 1965,
applies to:
A. All employees in any establishment
B. Only workers in factories
C. Employees in establishments with 20 or more employees
D. Only government employees
Answer: C. Employees in establishments with 20 or more employees
📘
Auditing – MCQs (Q36–45)
Q36. An auditor’s primary duty is to:
A. Detect fraud and errors
B. Issue an opinion on the financial statements
C. Prepare financial statements
D. Ensure compliance with tax laws
Answer: B. Issue an opinion on the financial statements
Q37. Which of the following is not an
auditing standard?
A. ISA (International Standards on Auditing)
B. SA (Standard Auditing Practices)
C. GAAP (Generally Accepted Accounting Principles)
D. AAS (Auditing and Assurance Standards)
Answer: C. GAAP (Generally Accepted Accounting Principles)
Q38. The internal control system is
designed to:
A. Prevent errors and fraud
B. Ensure the accuracy of financial statements
C. Ensure compliance with laws and regulations
D. All of the above
Answer: D. All of the above
Q39. The concept of “Vouching” in auditing
refers to:
A. Checking the arithmetic accuracy of the books
B. Verifying the authenticity of transactions
C. Confirming the balances with third parties
D. Ensuring compliance with laws
Answer: B. Verifying the authenticity of transactions
Q40. An auditor is required to report
whether the financial statements comply with:
A. The International Financial Reporting Standards (IFRS)
B. The Generally Accepted Accounting Principles (GAAP)
C. The laws and regulations of the country
D. All of the above
Answer: D. All of the above
Q41. Which of the following is an example
of a substantive audit procedure?
A. Observation
B. Analytical procedures
C. Inquiry
D. Confirmation
Answer: B. Analytical procedures
Q42. The auditor’s report on financial
statements should express an opinion on whether:
A. The financial statements are in accordance with accounting standards
B. The company is making a profit
C. The company is following tax laws
D. The company is following international laws
Answer: A. The financial statements are in accordance with accounting
standards
Q43. The concept of “Audit Evidence” refers
to:
A. The audit plan
B. The documents and information used to form the audit opinion
C. The accounting records maintained by the company
D. The auditor’s report
Answer: B. The documents and information used to form the audit opinion
Q44. Which of the following is considered a
limitation of an audit?
A. Auditors can guarantee the accuracy of financial statements
B. Auditors rely on internal control systems
C. Auditors can ensure compliance with all laws and regulations
D. Auditors have access to all internal documents of the company
Answer: B. Auditors rely on internal control systems
Q45. Which section of the Companies Act,
2013, governs the appointment of auditors?
A. Section 139
B. Section 141
C. Section 143
D. Section 144
Answer: A. Section 139
📘
Taxation – MCQs (Q46–50)
Q46. The tax levied by the government on
income is called:
A. Sales tax
B. Income tax
C. Property tax
D. Wealth tax
Answer: B. Income tax
Q47. In the context of income tax, which of
the following is true about the term 'Assessee'?
A. Only individuals who pay tax
B. A person who is liable to pay tax
C. A tax consultant
D. A company that generates income
Answer: B. A person who is liable to pay tax
Q48. Which of the following is not included
in the definition of 'Income' under Section 2(24) of the Income Tax Act, 1961?
A. Salary
B. Dividend
C. Agricultural income
D. Capital gains
Answer: C. Agricultural income
Q49. The tax on a person’s income that is
calculated based on the total taxable income after allowing deductions and
exemptions is called:
A. Tax on gross income
B. Tax on net income
C. Progressive tax
D. Flat tax
Answer: B. Tax on net income
Q50. Which section of the Income Tax Act,
1961, deals with 'Clubbing of Income'?
A. Section 10
B. Section 64
C. Section 80C
D. Section 115
Answer: B. Section 64
Feel free to
let me know if you want to continue with more Taxation questions or any other
topic!
4o mini
You said:
to continue
with more Taxation questions
ChatGPT said:
Here are more Taxation
– MCQs (Q51–60) for Paper 2: Commerce (Ph.D. Entrance).
📘
Taxation – MCQs (Q51–60)
Q51. Which of the following is not eligible
for deduction under Section 80C of the Income Tax Act, 1961?
A. Life Insurance Premium
B. National Savings Certificates (NSC)
C. Public Provident Fund (PPF)
D. Rent paid for a residential property
Answer: D. Rent paid for a residential property
Q52. Under the Income Tax Act, 1961, the
maximum limit of deduction under Section 80D for insurance premium paid for a
family (other than parents) is:
A. Rs. 15,000
B. Rs. 25,000
C. Rs. 50,000
D. Rs. 1,00,000
Answer: B. Rs. 25,000
Q53. Which of the following is treated as a
capital gain under the Income Tax Act, 1961?
A. Profit from the sale of land
B. Profit from the sale of stock-in-trade
C. Income from agricultural operations
D. Profit from the sale of gold bonds
Answer: A. Profit from the sale of land
Q54. In case of a Hindu Undivided Family
(HUF), the head of the family is known as:
A. Karta
B. Coparcener
C. Member
D. Trustee
Answer: A. Karta
Q55. What is the due date for filing the
Income Tax return for an individual taxpayer for the assessment year 2023-24
(if not audited)?
A. 31st July
B. 30th September
C. 31st December
D. 31st March
Answer: A. 31st July
Q56. A salaried employee is eligible for a
deduction of up to how much under Section 10(13A) for house rent allowance
(HRA)?
A. 25% of salary
B. 50% of salary
C. Rent paid less 10% of salary
D. Rs. 1,50,000
Answer: C. Rent paid less 10% of salary
Q57. Which of the following is considered a
'Specified entity' under Section 10(23C) of the Income Tax Act, 1961, eligible
for tax exemption?
A. Charitable trusts
B. Religious institutions
C. Educational institutions
D. All of the above
Answer: D. All of the above
Q58. What is the threshold limit of taxable
income for an individual (below 60 years) in a financial year, to be eligible
for tax exemption under Section 80E for educational loans?
A. Rs. 2.5 lakh
B. Rs. 3.5 lakh
C. Rs. 5 lakh
D. No limit
Answer: D. No limit
Q59. Under which section of the Income Tax
Act, 1961, is the provision of "Deduction for interest on loans for
purchasing a house property" provided?
A. Section 24(b)
B. Section 80E
C. Section 80C
D. Section 80D
Answer: A. Section 24(b)
Q60. The tax paid under the provisions of
the Goods and Services Tax (GST) Act is:
A. Indirect tax
B. Direct tax
C. Both direct and indirect tax
D. None of the above
Answer: A. Indirect tax
📘
Taxation – MCQs (Q61–70)
Q61. Which of the following is not a
feature of the Goods and Services Tax (GST)?
A. It is a single tax on the supply of goods and services.
B. It is a direct tax levied on income.
C. It is applicable at each stage of the production and distribution chain.
D. It replaces multiple indirect taxes.
Answer: B. It is a direct tax levied on income.
Q62. Which of the following is treated as a
'supply' under GST?
A. Sale of goods
B. Import of services
C. Transfer of business assets
D. All of the above
Answer: D. All of the above
Q63. Under GST, the input tax credit (ITC)
can be claimed for:
A. Only tax paid on business-related goods and services
B. Tax paid on both business-related and personal expenses
C. Tax paid on personal expenses
D. None of the above
Answer: A. Only tax paid on business-related goods and services
Q64. What is the rate of GST on the supply
of most goods in India?
A. 5%
B. 12%
C. 18%
D. 28%
Answer: C. 18%
Q65. The GST is collected by the government
under the provisions of which act?
A. The Finance Act, 2000
B. The GST Act, 2017
C. The Central Sales Tax Act, 1956
D. The Goods and Services Tax (IGST) Act, 2016
Answer: B. The GST Act, 2017
Q66. Under GST, the time limit for filing
GST returns is:
A. 15 days from the end of the month
B. 20 days from the end of the month
C. 25 days from the end of the month
D. 30 days from the end of the month
Answer: C. 25 days from the end of the month
Q67. Which of the following taxes is
excluded from GST?
A. Excise Duty
B. Customs Duty
C. Value Added Tax (VAT)
D. Stamp Duty
Answer: D. Stamp Duty
Q68. Under GST, who is responsible for
collecting and remitting the tax to the government?
A. The purchaser of goods
B. The supplier of goods
C. Both the supplier and purchaser
D. The government itself
Answer: B. The supplier of goods
Q69. Which of the following taxes is levied
under the GST system on inter-state transactions?
A. Central GST (CGST)
B. State GST (SGST)
C. Integrated GST (IGST)
D. Union Territory GST (UTGST)
Answer: C. Integrated GST (IGST)
Q70. Under GST, which of the following is
not a condition for availing input tax credit?
A. The invoice must be in the name of the person claiming the credit.
B. The supplier must be registered under GST.
C. The goods and services must be for personal use.
D. The tax must have been paid to the government.
Answer: C. The goods and services must be for personal use.
Research
Methodology MCQs
Foundations of
Research
Q1. What is the primary objective of
research?
A. To prove a hypothesis
B. To find an answer to a research question
C. To collect data for personal gain
D. To create a new methodology
Answer: B. To find an answer to a research question
Q2. Which of the following is an example
of applied research?
A. A study on the social behavior of teenagers in a city
B. A study on improving the effectiveness of a specific marketing campaign
C. A study on the theory of relativity
D. A study on historical data analysis
Answer: B. A study on improving the effectiveness of a specific
marketing campaign
Q3. Which type of research focuses on the
discovery of new facts or the development of theories?
A. Descriptive Research
B. Exploratory Research
C. Analytical Research
D. Fundamental Research
Answer: D. Fundamental Research
Q4. A researcher develops a hypothesis and
then gathers data to test its validity. This is an example of:
A. Descriptive research
B. Exploratory research
C. Experimental research
D. Applied research
Answer: C. Experimental research
Research Design
Q5. Which of the following is NOT a type
of research design?
A. Exploratory design
B. Descriptive design
C. Predictive design
D. Experimental design
Answer: C. Predictive design
Q6. What is the main purpose of
exploratory research?
A. To find a cause-and-effect relationship
B. To understand underlying motivations, insights, or problems
C. To create a theory
D. To establish causal relationships
Answer: B. To understand underlying motivations, insights, or problems
Q7. Which of the following is NOT a
characteristic of descriptive research?
A. It involves the collection of data to describe characteristics or functions
of a phenomenon.
B. It aims to establish cause-and-effect relationships.
C. It is used to gather information that can be generalized.
D. It is used to measure attitudes, opinions, or behaviors of a group.
Answer: B. It aims to establish cause-and-effect relationships.
Q8. Which research design involves
manipulating an independent variable to observe the effect on a dependent
variable?
A. Descriptive research
B. Correlational research
C. Experimental research
D. Historical research
Answer: C. Experimental research
Sampling
Techniques
Q9. Which of the following is a
probability sampling technique?
A. Convenience sampling
B. Judgment sampling
C. Stratified sampling
D. Snowball sampling
Answer: C. Stratified sampling
Q10. In which of the following does each
member of the population have an equal chance of being selected?
A. Non-probability sampling
B. Probability sampling
C. Judgment sampling
D. Convenience sampling
Answer: B. Probability sampling
Q11. Which of the following is a key
characteristic of non-probability sampling?
A. Every member of the population has an equal chance of selection
B. Random selection is used
C. Selection is based on personal judgment or convenience
D. It ensures representativeness of the sample
Answer: C. Selection is based on personal judgment or convenience
Statistical
Tools
Q12. The most appropriate measure of central
tendency for ordinal data is:
A. Mean
B. Median
C. Mode
D. Range
Answer: B. Median
Q13. Which statistical method is used to
determine the relationship between two variables?
A. Descriptive statistics
B. Regression analysis
C. Frequency distribution
D. Chi-square test
Answer: B. Regression analysis
Q14. The formula for calculating the
correlation coefficient is:
A. (Σx² + Σy²) / Σxy
B. (Σxy) / (Σx² + Σy²)
C. (Σxy) / (Σx + Σy)
D. (Σxy) / (Σx² + Σy² - Σxy)
Answer: B. (Σxy) / (Σx² + Σy²)
Q15. Which statistical test is commonly
used to determine whether there is a significant difference between observed
and expected frequencies?
A. t-test
B. Z-test
C. Chi-square test
D. ANOVA
Answer: C. Chi-square test
Report Writing
Q16. Which of the following is not typically
included in a research report?
A. Introduction
B. Research methodology
C. Data analysis results
D. Personal opinions of the researcher
Answer: D. Personal opinions of the researcher
Q17. In which section of a research report
are the implications of the research findings discussed?
A. Introduction
B. Literature Review
C. Conclusion
D. Methodology
Answer: C. Conclusion
Q18. Which of the following referencing
styles is commonly used in social sciences?
A. MLA
B. APA
C. Chicago
D. Harvard
Answer: B. APA
Q19. Which of the following is a sign of
plagiarism in research writing?
A. Proper citations and references
B. Rephrasing someone else’s work without acknowledgment
C. Writing in your own words with original thoughts
D. Use of primary sources
Answer: B. Rephrasing someone else’s work without acknowledgment
Q20. The format for writing a research
paper generally includes the following sections:
A. Introduction, Methodology, Findings, Discussion, Conclusion
B. Background, Hypothesis, Results, Summary
C. Objective, Data, Theory, Conclusion
D. Survey, Analysis, Literature Review
Answer: A. Introduction, Methodology, Findings, Discussion, Conclusion
Q21. The first step in formulating a
research problem is:
A. Conducting literature review
B. Identifying research objectives
C. Formulating hypothesis
D. Defining the research question
Answer: D. Defining the research question
Q22. A research hypothesis is:
A. A proven fact
B. A proposed explanation for a phenomenon
C. The final conclusion of the research
D. A literature review
Answer: B. A proposed explanation for a phenomenon
Q23. Which of the following is an essential
characteristic of a good research problem?
A. It is vague and generalized
B. It is narrow and specific
C. It lacks clear objectives
D. It is formulated after data collection
Answer: B. It is narrow and specific
Q24. The process of reviewing existing
literature before conducting research is called:
A. Theoretical research
B. Literature review
C. Hypothesis testing
D. Conceptual framework
Answer: B. Literature review
Q25. What is the purpose of a conceptual
framework in research?
A. To define research objectives
B. To provide a structure for research questions and hypotheses
C. To determine sampling techniques
D. To calculate statistical tests
Answer: B. To provide a structure for research questions and hypotheses
Data Collection
Methods
Q26. Which of the following is a primary
data collection method?
A. Reviewing existing records
B. Conducting interviews
C. Analyzing published books
D. Examining government reports
Answer: B. Conducting interviews
Q27. Which data collection technique is
most suitable when studying behaviors in a natural setting?
A. Laboratory experiment
B. Survey questionnaire
C. Observation
D. Secondary data analysis
Answer: C. Observation
Q28. Which of the following is an example
of secondary data?
A. Data collected through surveys
B. Data gathered from online surveys
C. Government statistics on population
D. Data collected from focus groups
Answer: C. Government statistics on population
Q29. Which of the following methods is
considered an unstructured form of data collection?
A. Questionnaire survey
B. Structured interview
C. Focus group discussion
D. Observation checklist
Answer: C. Focus group discussion
Q30. In which of the following cases is a
survey method NOT appropriate?
A. When trying to understand people's preferences
B. When measuring the impact of an educational program
C. When the target population is spread over a large geographical area
D. When studying a small group of participants in-depth
Answer: D. When studying a small group of participants in-depth
Sampling
Techniques
Q31. A researcher selects participants
based on certain characteristics such as age, gender, and income. This is an
example of:
A. Simple random sampling
B. Systematic sampling
C. Stratified sampling
D. Convenience sampling
Answer: C. Stratified sampling
Q32. The main advantage of probability
sampling is:
A. It saves time and cost
B. It ensures that the sample is representative of the population
C. It can be used in any situation
D. It involves subjective selection of participants
Answer: B. It ensures that the sample is representative of the
population
Q33. Which of the following is NOT a method
of non-probability sampling?
A. Convenience sampling
B. Snowball sampling
C. Stratified sampling
D. Judgment sampling
Answer: C. Stratified sampling
Q34. In which situation would a researcher
use purposive sampling?
A. When the population is large and needs to be randomly selected
B. When only a specific type of participant is needed
C. When it is impossible to contact the entire population
D. When the sample size is very small
Answer: B. When only a specific type of participant is needed
Q35. What is the main purpose of a sample
size calculation?
A. To determine the number of participants needed for the study
B. To select the data collection method
C. To decide the location of data collection
D. To measure statistical significance
Answer: A. To determine the number of participants needed for the study
Statistical Tools
Q36. The measure of variability that
represents the average squared deviation from the mean is:
A. Mean
B. Mode
C. Standard deviation
D. Variance
Answer: D. Variance
Q37. In a normal distribution, the mean,
median, and mode are:
A. Different
B. The same
C. Not related
D. Always skewed
Answer: B. The same
Q38. If a researcher finds a correlation
coefficient of -0.8 between two variables, this indicates:
A. A weak positive relationship
B. A strong negative relationship
C. No relationship
D. A weak negative relationship
Answer: B. A strong negative relationship
Q39. A p-value of 0.03 means:
A. There is a 3% chance that the observed results occurred by random chance
B. The null hypothesis is true
C. The sample size is too small
D. The results are not statistically significant
Answer: A. There is a 3% chance that the observed results occurred by
random chance
Q40. The range of data is:
A. The difference between the largest and smallest values
B. The average of all data points
C. The middle value of the data
D. The sum of all data values
Answer: A. The difference between the largest and smallest values
Report Writing
Q41. Which of the following should NOT be
included in the findings section of a research report?
A. A summary of the data analysis
B. A description of the research methods
C. Interpretation of the results
D. A discussion of the implications of the findings
Answer: B. A description of the research methods
Q42. In research reporting, the purpose of
a discussion section is to:
A. Present raw data
B. Summarize the research methods
C. Interpret the findings and relate them to the hypothesis
D. Give a personal opinion on the research topic
Answer: C. Interpret the findings and relate them to the hypothesis
Q43. When writing a research paper, which
style is typically used for citations in the social sciences?
A. Chicago
B. MLA
C. APA
D. Harvard
Answer: C. APA
Q44. A research report’s conclusion should:
A. Be a detailed discussion of the data
B. Present new findings not discussed earlier in the report
C. Summarize the main findings and suggest future research directions
D. Introduce new concepts unrelated to the research
Answer: C. Summarize the main findings and suggest future research
directions
Q45. Which section of a research report
discusses the limitations of the study?
A. Introduction
B. Literature Review
C. Methodology
D. Conclusion
Answer: D. Conclusion
Sampling
Techniques
Q46. Which sampling technique is most
likely to result in a sample that is not representative of the population?
A. Simple random sampling
B. Stratified random sampling
C. Convenience sampling
D. Systematic sampling
Answer: C. Convenience sampling
Q47. In cluster sampling, the population is
divided into:
A. Groups or clusters
B. Equal groups
C. Subgroups with similar characteristics
D. Random segments
Answer: A. Groups or clusters
Q48. The main advantage of stratified
sampling is:
A. It is easy to administer and costs less
B. It ensures that each subgroup is adequately represented
C. It gives more control over the selection process
D. It works best with small populations
Answer: B. It ensures that each subgroup is adequately represented
Q49. In which of the following situations
would you use cluster sampling?
A. When the population is homogenous
B. When it is difficult to create a sampling frame
C. When all participants are readily accessible
D. When data is collected from a small group
Answer: B. When it is difficult to create a sampling frame
Q50. In probability sampling, the chances
of each member of the population being selected are:
A. Unknown
B. Equal
C. Unequal
D. Random
Answer: B. Equal
Statistical
Tools
Q51. Which of the following measures the
strength and direction of a linear relationship between two variables?
A. Variance
B. Correlation coefficient
C. Standard deviation
D. Mean
Answer: B. Correlation coefficient
Q52. The term “degrees of freedom” refers
to:
A. The number of independent observations
B. The number of variables in a study
C. The size of the sample
D. The number of participants
Answer: A. The number of independent observations
Q53. A Type I error occurs when:
A. The null hypothesis is rejected when it is true
B. The null hypothesis is accepted when it is false
C. The sample size is too large
D. The test statistic is too small
Answer: A. The null hypothesis is rejected when it is true
Q54. Which of the following statistical
tests is used to compare the means of two independent samples?
A. T-test
B. Chi-square test
C. ANOVA
D. Regression analysis
Answer: A. T-test
Q55. In a research study, the confidence
interval gives:
A. The range of values within which the true population parameter is likely to
lie
B. The actual population mean
C. The probability that the hypothesis is true
D. The exact value of the population mean
Answer: A. The range of values within which the true population
parameter is likely to lie
Research Design
Q56. An exploratory research design is most
appropriate when:
A. The researcher has a clear understanding of the research problem
B. The researcher is testing a hypothesis
C. The researcher aims to understand a new or unclear issue
D. The research aims to analyze relationships between variables
Answer: C. The researcher aims to understand a new or unclear issue
Q57. A descriptive research design is used
to:
A. Establish cause-and-effect relationships
B. Describe characteristics of a population or phenomenon
C. Test a hypothesis
D. Explore an unknown problem
Answer: B. Describe characteristics of a population or phenomenon
Q58. Which of the following is NOT a
characteristic of experimental research design?
A. Control over variables
B. Random assignment
C. Cause-and-effect relationships
D. Natural settings
Answer: D. Natural settings
Q59. The main goal of an experimental
design is to:
A. Explore new research areas
B. Identify relationships between variables
C. Establish causality between variables
D. Describe the characteristics of a population
Answer: C. Establish causality between variables
Q60. A longitudinal study involves:
A. Collecting data from a sample at one point in time
B. Comparing different groups at the same time
C. Collecting data from a sample over an extended period
D. Collecting data from different geographical locations
Answer: C. Collecting data from a sample over an extended period
Report Writing
Q61. Which section of the research report
should contain the research questions and hypotheses?
A. Introduction
B. Literature Review
C. Methodology
D. Conclusion
Answer: A. Introduction
Q62. Which of the following is typically
found in the methodology section of a research report?
A. Data analysis results
B. Review of relevant literature
C. Explanation of how data was collected and analyzed
D. Final conclusions of the study
Answer: C. Explanation of how data was collected and analyzed
Q63. Which citation style is commonly used
in the humanities and social sciences?
A. Chicago
B. MLA
C. APA
D. Harvard
Answer: B. MLA
Q64. The purpose of an abstract in a
research report is to:
A. Provide a detailed description of the data collection process
B. Summarize the main points of the report
C. Present the detailed analysis and findings
D. Provide references to all cited sources
Answer: B. Summarize the main points of the report
Q65. Which section of a research report
presents the findings and their interpretation?
A. Introduction
B. Literature Review
C. Results and Discussion
D. Conclusion
Answer: C. Results and Discussion
Ethical Issues
in Research
Q66. Which of the following is an example
of an ethical issue in research?
A. Falsifying data to fit the hypothesis
B. Selecting participants randomly
C. Ensuring the research is relevant to the field
D. Analyzing data statistically
Answer: A. Falsifying data to fit the hypothesis
Q67. What is the main purpose of obtaining
informed consent from research participants?
A. To ensure that participants understand their rights and the nature of the
research
B. To gather personal information from the participants
C. To prevent any conflict of interest in the research
D. To guarantee that participants will participate in the study
Answer: A. To ensure that participants understand their rights and the
nature of the research
Q68. Which of the following is an example
of a conflict of interest in research?
A. A researcher selects a topic of personal interest
B. A researcher has financial ties to a company related to the research
C. A researcher uses only qualitative methods
D. A researcher submits a report on time
Answer: B. A researcher has financial ties to a company related to the
research
Q69. Research integrity is most closely
related to:
A. The speed at which research is conducted
B. The ethical conduct of the research process
C. The financial success of the research
D. The ability to publish in high-impact journals
Answer: B. The ethical conduct of the research process
Q70. Which ethical guideline ensures that
no harm comes to participants during the study?
A. Confidentiality
B. Voluntary participation
C. Non-maleficence
D. Transparency
Answer: C. Non-maleficence
Data Collection
Methods
Q71. Which of the following is NOT a
primary method of data collection?
A. Surveys
B. Interviews
C. Observations
D. Literature review
Answer: D. Literature review
Q72. Which of the following data collection
methods involves the researcher directly interacting with the participants?
A. Surveys
B. Archival research
C. Observations
D. Interviews
Answer: D. Interviews
Q73. A structured questionnaire is most
likely to be used in:
A. Qualitative research
B. Quantitative research
C. Case study research
D. Action research
Answer: B. Quantitative research
Q74. In which of the following situations
is participant observation most appropriate?
A. When a researcher wants to analyze a large dataset
B. When the researcher wants to avoid personal bias
C. When studying a social group in its natural environment
D. When using existing data from secondary sources
Answer: C. When studying a social group in its natural environment
Q75. Which of the following is a
disadvantage of using secondary data?
A. It is cost-effective and time-saving
B. The data may not be directly relevant to the research question
C. The data collection process is easier
D. The data is already processed and analyzed
Answer: B. The data may not be directly relevant to the research
question
Statistical
Tools & Techniques
Q76. A researcher calculates the mean and
standard deviation to describe the distribution of scores. This is an example
of:
A. Descriptive statistics
B. Inferential statistics
C. Hypothesis testing
D. Data cleaning
Answer: A. Descriptive statistics
Q77. Which of the following is used to test
the relationship between two categorical variables?
A. Pearson’s correlation coefficient
B. Chi-square test
C. T-test
D. ANOVA
Answer: B. Chi-square test
Q78. Which of the following is a
characteristic of inferential statistics?
A. It involves summarizing and describing data
B. It makes predictions or inferences about a population from a sample
C. It involves no hypothesis testing
D. It deals only with numerical data
Answer: B. It makes predictions or inferences about a population from a
sample
Q79. The purpose of a p-value in hypothesis
testing is to:
A. Indicate the degree of relationship between two variables
B. Determine the accuracy of the sample data
C. Assess the strength of the evidence against the null hypothesis
D. Identify the sample size required for a study
Answer: C. Assess the strength of the evidence against the null
hypothesis
Q80. A researcher wants to examine the
differences between more than two groups. Which test should the researcher use?
A. T-test
B. Chi-square test
C. ANOVA
D. Pearson’s correlation
Answer: C. ANOVA
Reliability
& Validity
Q81. The extent to which a test measures
what it is supposed to measure is known as:
A. Reliability
B. Validity
C. Consistency
D. Accuracy
Answer: B. Validity
Q82. Which of the following is an example
of internal validity?
A. The extent to which the sample is representative of the population
B. The consistency of the measurements over time
C. The degree to which the findings can be generalized
D. The ability to determine cause-and-effect relationships within the study
Answer: D. The ability to determine cause-and-effect relationships
within the study
Q83. Which type of reliability is assessed
by administering the same test to the same group at two different points in
time?
A. Test-retest reliability
B. Inter-rater reliability
C. Internal consistency
D. Parallel forms reliability
Answer: A. Test-retest reliability
Q84. Which of the following enhances the
validity of a research study?
A. Ensuring random assignment of participants
B. Using a convenience sample
C. Limiting the study to a small group of participants
D. Excluding any control group
Answer: A. Ensuring random assignment of participants
Q85. If a test consistently produces the
same results over repeated measurements, it is said to be:
A. Valid
B. Reliable
C. Inaccurate
D. Biased
Answer: B. Reliable
Ethical
Considerations
Q86. Which of the following best defines
ethical research?
A. Research conducted with full honesty and transparency
B. Research that prioritizes personal interests over participant well-being
C. Research that results in profitable outcomes for the researcher
D. Research that minimizes the time spent on data collection
Answer: A. Research conducted with full honesty and transparency
Q87. Which ethical principle ensures that
research participants are treated with respect and dignity?
A. Confidentiality
B. Autonomy
C. Beneficence
D. Non-maleficence
Answer: B. Autonomy
Q88. A researcher must ensure that no harm
is done to the participants in a study. This is an example of:
A. Confidentiality
B. Non-maleficence
C. Justice
D. Beneficence
Answer: B. Non-maleficence
Q89. When research participants are
informed about the purpose, procedures, risks, and benefits of the study, it is
called:
A. Informed consent
B. Randomization
C. Deception
D. Confidentiality
Answer: A. Informed consent
Q90. Which of the following is a potential
ethical issue in qualitative research?
A. Overreliance on statistical analysis
B. Misinterpretation of quantitative data
C. Breach of confidentiality or anonymity
D. Using pre-existing datasets
Answer: C. Breach of confidentiality or anonymity
Types of
Research
Q91. A cross-sectional study involves:
A. Collecting data at one point in time
B. Collecting data over a long period
C. Analyzing the relationship between variables
D. Performing experiments to determine causality
Answer: A. Collecting data at one point in time
Q92. A case study typically involves:
A. Randomly selecting a sample of participants
B. Conducting a detailed analysis of a single case or a few cases
C. Analyzing numerical data from a large group
D. Conducting experiments to establish cause-and-effect relationships
Answer: B. Conducting a detailed analysis of a single case or a few
cases
Q93. Experimental research is most
appropriate when:
A. The researcher seeks to describe a phenomenon
B. The researcher wants to establish causal relationships between variables
C. The research focuses on subjective interpretations
D. The researcher is only interested in qualitative data
Answer: B. The researcher wants to establish causal relationships between
variables
Q94. Longitudinal research is typically
used to:
A. Collect data at a single point in time
B. Study the changes in the same group over time
C. Conduct experiments on isolated variables
D. Examine the relationship between two variables
Answer: B. Study the changes in the same group over time
Q95. Qualitative research is best suited
for:
A. Testing hypotheses
B. Establishing statistical relationships
C. Exploring deeper meanings, experiences, and perspectives
D. Conducting controlled experiments
Answer: C. Exploring deeper meanings, experiences, and perspectives
Accounting - 50
MCQs
Q1. Which of
the following is an example of a capital expenditure?
A. Rent paid
for office space
B. Purchase of machinery
C. Salaries of employees
D. Advertising expenses
Answer: B. Purchase of machinery
Q2. The
matching principle in accounting requires that:
A. Revenues are
recognized when earned
B. Expenses are recognized when incurred
C. Expenses are matched with the revenue they help generate
D. Assets are recognized at their current market value
Answer: C. Expenses are matched with the revenue they help generate
Q3. The
accounting equation is:
A. Assets =
Liabilities + Equity
B. Assets = Revenues + Liabilities
C. Assets = Expenses + Income
D. Assets = Liabilities + Expenses
Answer: A. Assets = Liabilities + Equity
Q4. Which of
the following accounts is typically classified as a current liability?
A. Long-term
debt
B. Accounts payable
C. Common stock
D. Retained earnings
Answer: B. Accounts payable
Q5. Depreciation
is:
A. A method of
allocating the cost of a fixed asset over its useful life
B. An expense that does not affect cash flow
C. A decrease in the value of an asset due to market conditions
D. The reduction in the amount of inventory
Answer: A. A method of allocating the cost of a fixed asset over its
useful life
Q6. The process
of recording and classifying transactions into a systematic manner is known as:
A. Financial
analysis
B. Accounting
C. Bookkeeping
D. Auditing
Answer: C. Bookkeeping
Q7. The primary
purpose of financial accounting is to:
A. Measure
profits
B. Provide financial information to external users
C. Ensure tax compliance
D. Minimize operational costs
Answer: B. Provide financial information to external users
Q8. The direct
method of calculating cash flow from operating activities:
A. Adjusts net
income for changes in working capital
B. Starts with the net income and adjusts for non-cash items
C. Lists cash inflows and outflows from operating activities
D. Includes depreciation in the calculation of cash flow
Answer: C. Lists cash inflows and outflows from operating activities
Q9. Which of
the following is NOT a generally accepted accounting principle (GAAP)?
A. Conservatism
B. Consistency
C. Comparability
D. Subjectivity
Answer: D. Subjectivity
Q10. The
current ratio is calculated as:
A. Current
assets / Current liabilities
B. Current liabilities / Current assets
C. Total assets / Total liabilities
D. Net income / Shareholders’ equity
Answer: A. Current assets / Current liabilities
Q11. Which of
the following is an example of an intangible asset?
A. Machinery
B. Building
C. Goodwill
D. Inventory
Answer: C. Goodwill
Q12. An
increase in which of the following would lead to an increase in a company’s
equity?
A. Accounts
payable
B. Retained earnings
C. Salaries payable
D. Depreciation
Answer: B. Retained earnings
Q13. The
statement of cash flows provides information about:
A. The
financial position of a company at a specific point in time
B. The company’s profits or losses during a specific period
C. The cash inflows and outflows over a period of time
D. The changes in the company’s equity during a period
Answer: C. The cash inflows and outflows over a period of time
Q14. Which of
the following statements is correct about the accrual basis of accounting?
A. Revenues are
recognized when cash is received
B. Expenses are recognized when cash is paid
C. Revenues are recognized when earned, and expenses are recognized when
incurred
D. Revenues and expenses are recognized when cash is received or paid
Answer: C. Revenues are recognized when earned, and expenses are
recognized when incurred
Q15. The
journal entry to record the purchase of inventory on credit would include:
A. Debit
inventory, Credit accounts payable
B. Debit accounts payable, Credit inventory
C. Debit inventory, Credit cash
D. Debit cash, Credit inventory
Answer: A. Debit inventory, Credit accounts payable
Q16. Which of
the following would be reported in the non-current liabilities section of the
balance sheet?
A. Accounts
payable
B. Bank loan due in 6 months
C. Bank loan due in 5 years
D. Accrued expenses
Answer: C. Bank loan due in 5 years
Q17. What is
the primary function of an income statement?
A. To show the
company’s liquidity
B. To show the company’s profitability over a period of time
C. To show the company’s financial position
D. To show the company’s cash flows
Answer: B. To show the company’s profitability over a period of time
Q18. Which of
the following is a characteristic of a partnership?
A. Unlimited
liability for the partners
B. Limited life span
C. The business is a separate legal entity from the owners
D. The partners share the profits and losses according to their ownership
interests
Answer: A. Unlimited liability for the partners
Q19. The cost
of goods sold (COGS) is calculated as:
A. Opening
inventory + Purchases - Closing inventory
B. Opening inventory - Purchases + Closing inventory
C. Sales - Gross profit
D. Gross profit - Operating expenses
Answer: A. Opening inventory + Purchases - Closing inventory
Q20. Which of
the following is the primary purpose of a trial balance?
A. To prepare
the income statement
B. To ensure that debits equal credits
C. To prepare the balance sheet
D. To calculate the net income
Answer: B. To ensure that debits equal credits
Q21. A company
purchased equipment for $10,000. The equipment will be depreciated using the
straight-line method over 5 years with no salvage value. What is the annual
depreciation expense?
A. $1,000
B. $2,000
C. $5,000
D. $10,000
Answer: B. $2,000
Q22. Which of
the following accounting methods is used for inventory when the cost of the
oldest inventory is assigned to the cost of goods sold first?
A. FIFO
(First-In, First-Out)
B. LIFO (Last-In, First-Out)
C. Weighted average cost
D. Specific identification
Answer: A. FIFO (First-In, First-Out)
Q23. The
process of allocating the cost of intangible assets over their useful life is
known as:
A. Depreciation
B. Amortization
C. Impairment
D. Depletion
Answer: B. Amortization
Q24. Which of
the following is the formula to calculate earnings per share (EPS)?
A. Net income /
Total number of shares outstanding
B. Gross profit / Number of shares outstanding
C. Operating income / Number of shares outstanding
D. Net profit before tax / Number of shares outstanding
Answer: A. Net income / Total number of shares outstanding
Q25. A company
has $50,000 in assets and $30,000 in liabilities. What is the company’s equity?
A. $30,000
B. $50,000
C. $80,000
D. $20,000
Answer: D. $20,000
Q26. Which of
the following is the most appropriate method to record bad debts?
A. Direct
Write-Off Method
B. Allowance Method
C. Both A and B
D. None of the above
Answer: B. Allowance Method
Q27. If a
company receives an advance payment for goods to be delivered in the future, it
should record the payment as:
A. Revenue
B. Liability
C. Asset
D. Expense
Answer: B. Liability
Q28. Which of
the following is the correct formula to compute Return on Equity (ROE)?
A. Net income /
Total assets
B. Net income / Shareholders’ equity
C. Net income / Revenue
D. Total liabilities / Shareholders’ equity
Answer: B. Net income / Shareholders’ equity
Q29. Which
financial statement is used to assess the liquidity of a company?
A. Income
statement
B. Cash flow statement
C. Balance sheet
D. Statement of stockholders' equity
Answer: C. Balance sheet
Q30. Which of
the following is an example of a non-operating expense?
A. Cost of
goods sold
B. Salaries of employees
C. Interest on a loan
D. Depreciation of machinery
Answer: C. Interest on a loan
Q31. In a
partnership, how is the profit typically distributed among partners?
A. According to
capital contributions only
B. According to the profit-sharing ratio
C. Equally among partners
D. Based on the working hours of partners
Answer: B. According to the profit-sharing ratio
Q32. What is
the effect of a cash sale on the accounting equation?
A. Increase in
assets and decrease in liabilities
B. Increase in assets and increase in equity
C. Increase in liabilities and decrease in assets
D. Decrease in liabilities and decrease in equity
Answer: B. Increase in assets and increase in equity
Q33. Which of
the following is not an example of a current asset?
A. Inventory
B. Accounts receivable
C. Prepaid expenses
D. Land
Answer: D. Land
Q34. A
company's liabilities exceed its assets. This situation reflects:
A. Profitability
B. Insolvency
C. Liquidity
D. Equity
Answer: B. Insolvency
Q35. The
primary purpose of the statement of changes in equity is to:
A. Show how the
equity has changed during a reporting period
B. Show how cash flows have changed during a reporting period
C. Show the profitability of the company
D. Report assets and liabilities
Answer: A. Show how the equity has changed during a reporting period
Q36. The term
"working capital" refers to:
A. Total assets
B. Current assets minus current liabilities
C. Non-current assets minus current liabilities
D. Shareholder’s equity
Answer: B. Current assets minus current liabilities
Q37. Which of
the following is the proper accounting treatment for research and development
costs?
A. Capitalized
as an asset
B. Expensed as incurred
C. Reported as equity
D. Reported as a liability
Answer: B. Expensed as incurred
Q38. When an
accounting system is based on the accrual basis, revenue is recognized when:
A. Cash is
received
B. The product or service is delivered, regardless of when cash is received
C. The product is shipped
D. Payment is made
Answer: B. The product or service is delivered, regardless of when cash
is received
Q39. A
company’s gross profit is calculated as:
A. Revenue –
Cost of Goods Sold
B. Total Revenue – Total Expenses
C. Revenue – Operating Expenses
D. Net Income – Operating Income
Answer: A. Revenue – Cost of Goods Sold
Q40. Which of
the following is an example of a deferred expense?
A. Prepaid
insurance
B. Accounts payable
C. Short-term investments
D. Dividends payable
Answer: A. Prepaid insurance
Q41. What is
the primary purpose of the cost of goods sold (COGS) section on an income
statement?
A. To calculate
the profit margin
B. To calculate the total amount of expenses
C. To determine the direct costs of producing goods sold
D. To determine net income
Answer: C. To determine the direct costs of producing goods sold
Q42. A company
is liquidated. The first claim on assets is usually made by:
A. Stockholders
B. Debtors
C. Creditors
D. Employees
Answer: C. Creditors
Q43. Which of
the following accounts will be closed at the end of an accounting period?
A. Expense
accounts
B. Liability accounts
C. Asset accounts
D. Revenue accounts
Answer: A. Expense accounts
Q44. A company
has a policy of charging depreciation on a straight-line basis. If an asset’s
cost is $10,000, its residual value is $2,000, and its useful life is 4 years,
what is the annual depreciation?
A. $2,000
B. $3,000
C. $4,000
D. $5,000
Answer: B. $3,000
Q45. The
purpose of an audit is to:
A. Ensure the
company is paying its taxes
B. Examine financial records to ensure fairness and accuracy
C. Assist in company management decisions
D. Prepare financial statements for the company
Answer: B. Examine financial records to ensure fairness and accuracy
Q46. Which of
the following is an example of a contingent liability?
A. A lawsuit
that could result in a financial loss
B. Accounts payable
C. Notes payable
D. Bonds payable
Answer: A. A lawsuit that could result in a financial loss
Q47. The
process of allocating the cost of natural resources such as oil and minerals is
known as:
A. Depreciation
B. Amortization
C. Depletion
D. Impairment
Answer: C. Depletion
Q48. What does
the term "liquidity" refer to in accounting?
A. The ability
to pay off debts in the short term
B. The value of assets held by a company
C. The profit margin of a company
D. The degree of risk in a company’s operations
Answer: A. The ability to pay off debts in the short term
Q49. Which of
the following is considered a non-operating income?
A. Revenue from
selling goods
B. Interest earned on investments
C. Revenue from providing services
D. Sales of inventory
Answer: B. Interest earned on investments
Q50. The term
"asset turnover ratio" is calculated as:
A. Sales /
Total assets
B. Net income / Total assets
C. Assets / Total liabilities
D. Gross profit / Total sales
Answer: A. Sales / Total assets
Business Law -
50 MCQs
Q1. Which of
the following acts governs the formation and functioning of companies in India?
A. The Indian
Contract Act, 1872
B. The Companies Act, 2013
C. The Sale of Goods Act, 1930
D. The Partnership Act, 1932
Answer: B. The Companies Act, 2013
Q2. Which of
the following is not considered an essential element of a valid contract?
A. Offer and
acceptance
B. Legal consideration
C. Registration of the contract
D. Mutual consent
Answer: C. Registration of the contract
Q3. The Indian
Contract Act, 1872 applies to:
A. Only
contracts made in writing
B. Only contracts entered into by corporations
C. All contracts except those relating to immovable property
D. All contracts in India
Answer: D. All contracts in India
Q4. Which of
the following is not an example of a breach of contract?
A. Failure to
perform as per the agreement
B. Performance after the specified time
C. Substituting one party for another without consent
D. Performing the contract as per terms
Answer: D. Performing the contract as per terms
Q5. The
"Principle of Caveat Emptor" means:
A. Let the
seller beware
B. Let the buyer beware
C. Let the contract be void
D. Let the buyer be wise
Answer: B. Let the buyer beware
Q6. Which of
the following is the correct term for the right of a partner to participate in
the management of the business?
A. Partnership
by Estoppel
B. Partnership by Holding Out
C. Implied Authority
D. Authority by agreement
Answer: C. Implied Authority
Q7. The sale of
goods in India is governed by:
A. The Indian
Contract Act, 1872
B. The Sale of Goods Act, 1930
C. The Companies Act, 2013
D. The Indian Partnership Act, 1932
Answer: B. The Sale of Goods Act, 1930
Q8. A contract
that is legally unenforceable due to lack of consideration is known as:
A. Void
contract
B. Voidable contract
C. Valid contract
D. Enforceable contract
Answer: A. Void contract
Q9. In which of
the following situations, a contract is considered voidable?
A. If the
contract is made with a minor
B. If the contract is made with an adult
C. If the contract involves an illegal purpose
D. If the contract is with a company
Answer: A. If the contract is made with a minor
Q10. What is
the term for an agreement that is enforceable by law?
A. Void
agreement
B. Voidable agreement
C. Illegal agreement
D. Contract
Answer: D. Contract
Q11. The
concept of "privity of contract" means:
A. A third
party can sue for the breach of contract
B. Only parties to the contract have rights and obligations
C. Contracts can be assigned to others
D. A contract must always be in writing
Answer: B. Only parties to the contract have rights and obligations
Q12. A contract
can be discharged by:
A. Performance
B. Agreement
C. Breach
D. All of the above
Answer: D. All of the above
Q13. In case of
a minor's contract, the contract is:
A. Voidable
B. Void
C. Valid
D. Enforceable
Answer: B. Void
Q14. Which of
the following does not constitute a contract under the Indian Contract Act,
1872?
A. Agreement
without consideration
B. Agreement made without free consent
C. Agreement for an illegal purpose
D. Agreement made with a valid offer and acceptance
Answer: D. Agreement made with a valid offer and acceptance
Q15. A contract
made by a person who is not authorized to make it on behalf of another is:
A. Voidable
B. Void
C. Enforceable
D. Executed
Answer: B. Void
Q16. Under the
Indian Partnership Act, 1932, a partnership firm must have a minimum of:
A. 2 partners
B. 5 partners
C. 3 partners
D. 7 partners
Answer: A. 2 partners
Q17. Which of
the following is not a condition for the formation of a valid contract?
A. Competence
of the parties
B. Free consent of the parties
C. Consideration
D. Writing of the contract
Answer: D. Writing of the contract
Q18. In case of
a sale of goods contract, the seller is required to:
A. Deliver the
goods within the time specified
B. Guarantee the goods against any defect
C. Keep the goods under lock and key
D. Transfer title to the goods only when payment is made
Answer: A. Deliver the goods within the time specified
Q19. Under the
Indian Contract Act, the liability of an agent is:
A. Limited to
the contract
B. Unlimited
C. Limited to the agreement made by the principal
D. Limited to the scope of the agency
Answer: D. Limited to the scope of the agency
Q20. Which of
the following agreements is legally unenforceable?
A. Agreement to
do a legal act
B. Agreement to do an illegal act
C. Agreement to do an immoral act
D. Agreement to do a lawful act with conditions
Answer: B. Agreement to do an illegal act
Q21. The Indian
Contract Act, 1872 applies to:
A. Only
contracts with individuals
B. Only contracts involving commercial activities
C. All contracts except contracts related to real estate
D. All contracts in India, unless specifically exempted
Answer: D. All contracts in India, unless specifically exempted
Q22. The term
"negotiable instruments" includes:
A. Promissory
notes
B. Bills of exchange
C. Cheques
D. All of the above
Answer: D. All of the above
Q23. Which of
the following is a legal consequence of a breach of contract?
A. Forfeiture
of deposit
B. Compensation for loss
C. Extension of time for performance
D. All of the above
Answer: B. Compensation for loss
Q24. In the
context of "Agency" under the Indian Contract Act, which of the
following is not true?
A. An agent can
act on behalf of the principal
B. The agent has the authority to bind the principal
C. The principal is liable for the acts of the agent
D. The agent cannot be sued for any action of the principal
Answer: D. The agent cannot be sued for any action of the principal
Q25. In a
contract, consideration must be:
A. Lawful
B. Adequate
C. Past
D. Monetary
Answer: A. Lawful
Q26. Which of
the following is a necessary element for a contract of sale to be valid?
A. Delivery of
goods
B. Passing of title to goods
C. Agreement to transfer ownership
D. All of the above
Answer: D. All of the above
Q27. The Indian
Contract Act, 1872 covers which of the following?
A. All
contracts relating to personal property
B. All contracts that are made in writing
C. All contracts relating to immovable property
D. All contracts in India except those excluded by law
Answer: D. All contracts in India except those excluded by law
Q28. Which of
the following types of contracts require an agreement to be in writing?
A. Contract for
sale of goods above Rs. 1,000
B. Contract for sale of land
C. Contract for partnership
D. All of the above
Answer: D. All of the above
Q29. The Indian
Contract Act applies to:
A. Contracts
with minors
B. Contracts involving unlicensed trades
C. Contracts with persons of unsound mind
D. All of the above
Answer: D. All of the above
Q30. In an
agreement, the term "offer" refers to:
A. A proposal
made by one party
B. An acceptance by the offeree
C. A promise made by both parties
D. An agreement without consideration
Answer: A. A proposal made by one party
Q31. Which of
the following contracts requires a stamp duty to be paid?
A. Contract for
the sale of goods
B. Contract for partnership
C. Contract for lease of immovable property
D. Contract for services
Answer: C. Contract for lease of immovable property
Q32. An
agreement without consideration is:
A. Valid
B. Voidable
C. Void
D. Illegal
Answer: C. Void
Q33. Which of
the following is true about an agent's authority?
A. It is always
limited
B. It is implied unless specifically stated otherwise
C. It is never revocable
D. It requires consent of the principal to be established
Answer: B. It is implied unless specifically stated otherwise
Q34. Under the
Indian Sale of Goods Act, 1930, the price of goods:
A. Must be
fixed in writing
B. Can be determined by the parties involved
C. Cannot be changed
D. Must be in the form of cash
Answer: B. Can be determined by the parties involved
Q35. A
"void contract" refers to:
A. An agreement
that has no legal effect
B. An agreement that is unenforceable by law
C. A contract that is terminated by both parties
D. A contract that is executed
Answer: A. An agreement that has no legal effect
Q36. A
partnership agreement is legally binding if:
A. It is
written
B. It is registered
C. It is signed by all partners
D. All of the above
Answer: D. All of the above
Q37. A contract
in which the offeror can revoke the offer before acceptance is known as:
A. An executed
contract
B. An executory contract
C. A revocable contract
D. An irrevocable contract
Answer: C. A revocable contract
Q38. The main
purpose of the Sale of Goods Act, 1930 is to:
A. Regulate
contracts of sale
B. Ensure the enforcement of all contracts
C. Govern the sale of services
D. Ensure delivery of goods
Answer: A. Regulate contracts of sale
Q39. Which of
the following is true about a "condition precedent"?
A. It is a
condition that must occur before a contract becomes effective
B. It is a condition that occurs after a contract has been signed
C. It is not necessary for the contract to be valid
D. It refers to the terms of payment
Answer: A. It is a condition that must occur before a contract becomes
effective
Q40. A contract
made under duress is:
A. Voidable
B. Valid
C. Void
D. Enforceable
Answer: A. Voidable
Q41. The
provision for "performance of contract" is covered under:
A. Section 40
of the Indian Contract Act
B. Section 56 of the Indian Contract Act
C. Section 38 of the Indian Contract Act
D. Section 10 of the Indian Contract Act
Answer: A. Section 40 of the Indian Contract Act
Q42. The term
"agency" in business law refers to:
A. The legal
relationship between the principal and the agent
B. The relationship between two parties who enter into a contract
C. The relationship between a buyer and a seller
D. The relationship between a creditor and debtor
Answer: A. The legal relationship between the principal and the agent
Q43. An
agreement made for an illegal purpose is:
A. Voidable
B. Void
C. Valid
D. Enforceable
Answer: B. Void
Q44. A contract
made by a minor is:
A. Voidable
B. Void
C. Valid
D. Enforceable
Answer: B. Void
Q45. Under
which of the following situations would a contract be void?
A. When it
involves an illegal object
B. When it involves a minor
C. When it is signed under duress
D. All of the above
Answer: D. All of the above
Q46. A contract
formed by mutual agreement and consideration is called a:
A. Void
contract
B. Valid contract
C. Voidable contract
D. Executed contract
Answer: B. Valid contract
Q47. In case of
"mistake of law," the contract is:
A. Voidable
B. Void
C. Enforceable
D. Valid
Answer: B. Void
Q48. Which of
the following is an example of a legal remedy for breach of contract?
A. Specific
performance
B. Damages
C. Rescission
D. All of the above
Answer: D. All of the above
Q49. Under the
Indian Contract Act, 1872, the term "free consent" refers to:
A. Consent
obtained by mutual agreement
B. Consent obtained without any coercion or undue influence
C. Consent with full knowledge
D. All of the above
Answer: D. All of the above
Q50. Which of
the following contracts is enforceable under the Indian Contract Act, 1872?
A. Contract for
illegal trade
B. Contract made by a minor
C. Contract made under coercion
D. Contract for lawful consideration
Answer: D. Contract for lawful consideration
Economics - 50
MCQs
Q1. The basic
problem of economics is:
A. How to
distribute income
B. How to produce goods and services
C. How to allocate limited resources among unlimited wants
D. How to reduce unemployment
Answer: C. How to allocate limited resources among unlimited wants
Q2. The law of
demand states that:
A. When the
price of a good increases, the quantity demanded increases
B. When the price of a good increases, the quantity demanded decreases
C. When the price of a good decreases, the demand curve shifts to the left
D. Demand is independent of price
Answer: B. When the price of a good increases, the quantity demanded
decreases
Q3. Which of
the following is not a factor of production?
A. Land
B. Capital
C. Labor
D. Demand
Answer: D. Demand
Q4. The supply
curve generally slopes:
A. Upward from
left to right
B. Downward from left to right
C. Horizontally
D. Vertically
Answer: A. Upward from left to right
Q5. The
opportunity cost is:
A. The cost of
producing one additional unit
B. The cost of not producing a good
C. The cost of the next best alternative forgone
D. The monetary cost of goods and services
Answer: C. The cost of the next best alternative forgone
Q6. The term
"microeconomics" refers to the study of:
A. Aggregate
economic variables
B. The economy as a whole
C. The economic behavior of individual units like firms and households
D. Government policies and regulations
Answer: C. The economic behavior of individual units like firms and
households
Q7. The demand
for a good is said to be elastic if:
A. A change in
price causes no change in quantity demanded
B. A change in price causes a proportionate change in quantity demanded
C. A change in price causes a less than proportionate change in quantity
demanded
D. The quantity demanded is independent of the price
Answer: B. A change in price causes a proportionate change in quantity
demanded
Q8. The law of
diminishing marginal utility states that:
A. Utility
increases with every additional unit consumed
B. Marginal utility remains constant as consumption increases
C. Marginal utility decreases as the consumption of a good increases
D. Utility increases at a decreasing rate
Answer: C. Marginal utility decreases as the consumption of a good
increases
Q9. A perfectly
competitive market is characterized by:
A. A single
seller
B. A large number of buyers and sellers
C. Barriers to entry
D. Differentiated products
Answer: B. A large number of buyers and sellers
Q10. Gross
Domestic Product (GDP) measures:
A. The total
value of all goods and services produced within a country in a given time
period
B. The income of individuals in a country
C. The income from exports only
D. The total value of imports and exports
Answer: A. The total value of all goods and services produced within a
country in a given time period
Q11. Inflation
is defined as:
A. A decrease
in the general price level
B. A constant price level
C. An increase in the general price level
D. An increase in the supply of money
Answer: C. An increase in the general price level
Q12. Fiscal
policy refers to:
A. The
government's control over the money supply
B. The government's use of taxes and expenditure to influence the economy
C. The central bank’s regulation of interest rates
D. The regulation of foreign trade policies
Answer: B. The government's use of taxes and expenditure to influence
the economy
Q13. The
balance of payments includes:
A. The total
exports and imports of a country
B. All transactions between a country and the rest of the world
C. Only government transactions
D. Only trade in goods and services
Answer: B. All transactions between a country and the rest of the world
Q14. Which of
the following is an example of a public good?
A. A car
B. A park
C. A television
D. A private apartment
Answer: B. A park
Q15. In the
context of international trade, the term "comparative advantage"
refers to:
A. The ability
of a country to produce a good at a lower opportunity cost than another country
B. The ability of a country to produce a good at a lower cost than another
country
C. The ability to produce more goods than another country
D. The ability to produce goods more efficiently than another country
Answer: A. The ability of a country to produce a good at a lower
opportunity cost than another country
Q16. A
country’s exchange rate is determined by:
A. The value of
its currency in the international market
B. The central bank’s decision to print money
C. The government’s decisions about imports and exports
D. The level of inflation
Answer: A. The value of its currency in the international market
Q17. In the
context of market structures, a monopolistic competition involves:
A. A single
seller dominating the market
B. A few firms that control the market
C. Many firms selling differentiated products
D. Perfectly homogeneous goods and services
Answer: C. Many firms selling differentiated products
Q18. The law of
supply states that:
A. As the price
of a good increases, the quantity supplied increases
B. As the price of a good increases, the quantity demanded increases
C. As the price of a good decreases, the quantity supplied decreases
D. All of the above
Answer: A. As the price of a good increases, the quantity supplied
increases
Q19. The term
"opportunity cost" refers to:
A. The price of
a good in a free market
B. The loss of potential gain from other alternatives when one alternative is
chosen
C. The cost of producing an additional unit of a good
D. The opportunity to invest in any available asset
Answer: B. The loss of potential gain from other alternatives when one
alternative is chosen
Q20. The
concept of "marginal utility" refers to:
A. The total
satisfaction derived from all units consumed
B. The additional satisfaction gained from consuming one more unit of a good
C. The cost of producing one additional unit
D. The total amount of utility from all available goods
Answer: B. The additional satisfaction gained from consuming one more
unit of a good
Q21. The
aggregate demand curve slopes downward because:
A. As income
increases, the demand for goods decreases
B. A higher price level increases the purchasing power of money
C. A higher price level reduces the real income of households
D. Higher income leads to less demand for luxury goods
Answer: C. A higher price level reduces the real income of households
Q22. A direct
tax is:
A. A tax that
is levied on goods and services
B. A tax that is levied on income, property, or wealth
C. A tax that is paid indirectly by consumers
D. A tax on corporate profits
Answer: B. A tax that is levied on income, property, or wealth
Q23. The
concept of "derived demand" refers to:
A. Demand for
goods that are not essential
B. Demand for goods that are produced from another good or service
C. Demand for consumer goods only
D. The demand for a good that is directly related to its price
Answer: B. Demand for goods that are produced from another good or
service
Q24. The
marginal cost curve intersects the average total cost curve at:
A. The highest
point of the average total cost curve
B. The lowest point of the average total cost curve
C. The midpoint of the average total cost curve
D. The point where fixed costs are minimized
Answer: B. The lowest point of the average total cost curve
Q25. The
principle of "diminishing returns" applies when:
A. The quantity
of labor or capital increases
B. The quantity of one factor of production is increased while others are held
constant
C. More capital is invested in a production process
D. Productivity of all inputs remains constant
Answer: B. The quantity of one factor of production is increased while
others are held constant
Q26. The
Consumer Price Index (CPI) is used to:
A. Measure the
level of inflation in an economy
B. Measure the total production of an economy
C. Measure the level of unemployment
D. All of the above
Answer: A. Measure the level of inflation in an economy
Q27. Which of
the following is a characteristic of a monopolistic competition market
structure?
A. A single
seller controls the market
B. There are many firms offering differentiated products
C. There is only one product in the market
D. The government controls the pricing
Answer: B. There are many firms offering differentiated products
Q28. An
increase in demand will result in:
A. A shift of
the demand curve to the right
B. A movement along the demand curve
C. A shift of the supply curve to the right
D. A decrease in the equilibrium price
Answer: A. A shift of the demand curve to the right
Q29. Which of
the following is a characteristic of a perfectly competitive market?
A. No barriers
to entry
B. Homogeneous products
C. Many buyers and sellers
D. All of the above
Answer: D. All of the above
Q30. A subsidy
is a payment made by the government to:
A. A business
or individual to encourage or support a particular economic activity
B. Compensate for losses due to inflation
C. Raise the price of essential goods
D. Decrease exports
Answer: A. A payment made by the government to a business or individual
to encourage or support a particular economic activity
Q31. The main
aim of monetary policy is to:
A. Control
inflation
B. Encourage more government spending
C. Reduce the trade deficit
D. Manage the stock market
Answer: A. Control inflation
Q32. Which of
the following best defines "liquidity preference" theory?
A. People
prefer to hold wealth in the form of cash or near-cash assets when interest
rates are low
B. People prefer to invest in long-term assets
C. People invest only in government securities
D. People prefer non-monetary forms of investment
Answer: A. People prefer to hold wealth in the form of cash or near-cash
assets when interest rates are low
Q33. In a
monopoly, the price of a good is determined by:
A. The
intersection of demand and supply curves
B. The government’s regulation
C. The monopolist's control over supply
D. Consumer demand alone
Answer: C. The monopolist's control over supply
Q34. Which of
the following is considered a macroeconomic goal?
A. Full
employment
B. Maximizing profits for individual firms
C. Maximizing the market share of businesses
D. Controlling a firm’s wage structure
Answer: A. Full employment
Q35. The income
elasticity of demand is positive for:
A. Necessities
B. Inferior goods
C. Normal goods
D. Public goods
Answer: C. Normal goods
Q36. A shift in
the production possibility frontier represents:
A. A change in
the prices of factors of production
B. A change in the technology or resources available for production
C. A change in demand for goods
D. A reduction in the labor force
Answer: B. A change in the technology or resources available for
production
Q37. Which of
the following would lead to an increase in aggregate demand?
A. An increase
in the interest rate
B. A decrease in government spending
C. An increase in consumer confidence
D. An increase in taxes
Answer: C. An increase in consumer confidence
Q38. The
Philips curve illustrates the relationship between:
A. Unemployment
and inflation
B. National income and inflation
C. Price levels and output
D. Supply and demand
Answer: A. Unemployment and inflation
Q39. If the
marginal cost of producing a good is less than its price, the firm:
A. Is
maximizing its profit
B. Should produce more units of the good
C. Should reduce production
D. Will incur a loss
Answer: B. Should produce more units of the good
Q40. In
economics, the term "human capital" refers to:
A. The skills,
knowledge, and abilities of workers
B. The physical capital used in production
C. The amount of money invested in the stock market
D. The human resources available for employment
Answer: A. The skills, knowledge, and abilities of workers
Q41. Which of
the following is an example of a positive externality?
A. Pollution
from factories
B. Education leading to a more informed society
C. Increased government spending
D. Unemployment benefits
Answer: B. Education leading to a more informed society
Q42. The
multiplier effect refers to:
A. The total
increase in income that results from an initial increase in spending
B. The process of reducing government spending to control inflation
C. The effect of changes in taxation on aggregate demand
D. The increase in savings due to higher income
Answer: A. The total increase in income that results from an initial increase
in spending
Q43. Which of
the following is true about a recession?
A. It is
characterized by a rapid increase in economic growth
B. It typically involves a significant rise in consumer confidence
C. It is characterized by a decline in economic activity across the economy
D. It results in an increase in inflation
Answer: C. It is characterized by a decline in economic activity across
the economy
Q44. The
production possibility frontier (PPF) curve is typically concave because:
A. The
opportunity cost increases as more of one good is produced
B. The opportunity cost remains constant
C. Resources are perfectly substitutable
D. There are no constraints on production
Answer: A. The opportunity cost increases as more of one good is
produced
Q45. Which of
the following is a primary objective of a firm operating in a perfectly
competitive market?
A. To maximize
profits
B. To achieve the highest market share
C. To price goods and services above the market equilibrium price
D. To differentiate their products
Answer: A. To maximize profits
Q46. An
increase in aggregate supply results in:
A. A lower
level of output
B. An increase in the price level
C. A decrease in the price level
D. A decrease in the level of employment
Answer: C. A decrease in the price level
Q47. A
country’s exchange rate system is typically determined by:
A. Government
regulations
B. The country's level of foreign reserves
C. The central bank's monetary policies
D. Market forces of supply and demand for the currency
Answer: D. Market forces of supply and demand for the currency
Q48. Which of
the following is a feature of a monopoly?
A. Multiple
firms compete to sell the same product
B. Firms produce homogeneous goods
C. Barriers to entry are high
D. Firms face a perfectly elastic demand curve
Answer: C. Barriers to entry are high
Q49. A tariff
is:
A. A tax on
imported goods
B. A subsidy to domestic producers
C. A restriction on the quantity of imports
D. A type of foreign exchange control
Answer: A. A tax on imported goods
Q50. Which of
the following is considered an indicator of economic development?
A. High
inflation rates
B. Low literacy rates
C. High per capita income
D. High unemployment rates
Answer: C. High per capita income:
Business
Studies - 50 MCQs
Q1. Which of
the following is a function of management?
A. Planning
B. Organizing
C. Controlling
D. All of the above
Answer: D. All of the above
Q2. The main
objective of planning is:
A. To set goals
and determine the best course of action to achieve them
B. To organize resources
C. To control the activities of employees
D. To develop new products
Answer: A. To set goals and determine the best course of action to
achieve them
Q3. In which of
the following does management establish specific performance targets and goals?
A. Controlling
B. Organizing
C. Planning
D. Directing
Answer: C. Planning
Q4. Which of
the following is the highest level of management?
A. Top-level
management
B. Middle-level management
C. Lower-level management
D. Supervisory management
Answer: A. Top-level management
Q5. The process
of assigning specific tasks to individuals is known as:
A. Planning
B. Organizing
C. Directing
D. Controlling
Answer: B. Organizing
Q6. In a
business organization, the role of organizing involves:
A. Setting
goals
B. Ensuring that resources are used efficiently
C. Motivating employees
D. Controlling the budget
Answer: B. Ensuring that resources are used efficiently
Q7. Which of
the following is NOT a characteristic of an effective leader?
A. Clear
communication
B. Ability to delegate
C. Lack of empathy
D. Decision-making ability
Answer: C. Lack of empathy
Q8. Which of
the following is a type of organizational structure?
A. Line
structure
B. Functional structure
C. Matrix structure
D. All of the above
Answer: D. All of the above
Q9. The
"scalar chain" refers to:
A. The system
of reporting relationships in an organization
B. The process of making a decision
C. The flow of information in an organization
D. The formation of teams
Answer: A. The system of reporting relationships in an organization
Q10. Which of
the following is a principle of scientific management?
A. Division of
labor
B. Unity of command
C. Standardization of tools and work methods
D. All of the above
Answer: D. All of the above
Q11. The term
"span of control" refers to:
A. The number
of subordinates a manager can effectively manage
B. The number of tasks a manager must perform
C. The amount of work assigned to each subordinate
D. The level of autonomy in decision-making
Answer: A. The number of subordinates a manager can effectively manage
Q12. In which
of the following does an individual receive a share of profits based on their
contributions?
A. Partnership
B. Corporation
C. Sole proprietorship
D. Public sector enterprise
Answer: A. Partnership
Q13. The
ownership of shares in a company gives the shareholder:
A. Voting
rights
B. Control over the company's operations
C. Profit-sharing rights
D. Both A and C
Answer: D. Both A and C
Q14. Which of
the following is the primary purpose of a business?
A. Profit
maximization
B. Providing jobs
C. Government service
D. Social responsibility
Answer: A. Profit maximization
Q15. Which of
the following is a feature of a sole proprietorship?
A. Limited
liability
B. Shared control
C. Single ownership
D. Transferable ownership
Answer: C. Single ownership
Q16. The
process of dividing a business into smaller divisions or departments based on
specialized tasks is known as:
A.
Centralization
B. Specialization
C. Delegation
D. Decentralization
Answer: B. Specialization
Q17. Which of
the following is NOT a part of the marketing mix?
A. Price
B. Product
C. Placement
D. Profit
Answer: D. Profit
Q18. Which of
the following is the main objective of marketing?
A. To increase
the production of goods
B. To meet customer needs and wants
C. To enhance the reputation of a business
D. To increase competition
Answer: B. To meet customer needs and wants
Q19. In
marketing, the term "branding" refers to:
A. The price of
a product
B. A symbol or name that identifies a product
C. The location where a product is sold
D. The quantity of a product
Answer: B. A symbol or name that identifies a product
Q20. The
"4 Ps" in marketing refer to:
A. Product,
Place, People, Price
B. Product, Price, Promotion, Place
C. People, Promotion, Place, Profit
D. Price, Profit, Product, Promotion
Answer: B. Product, Price, Promotion, Place
Q21. A SWOT
analysis identifies:
A. Strengths,
Weaknesses, Opportunities, and Threats
B. Sales, Workload, Objectives, and Targets
C. Systematic Work, Output, and Time
D. Sales, Wages, Output, and Time
Answer: A. Strengths, Weaknesses, Opportunities, and Threats
Q22. The
process of gathering, analyzing, and interpreting information about a market is
known as:
A. Market
research
B. Advertising
C. Product development
D. Branding
Answer: A. Market research
Q23. The
principle of "division of labor" states that:
A. Jobs should
be divided into specialized tasks to improve efficiency
B. The authority should be shared equally among all employees
C. Employees should be promoted regularly
D. Workers should be assigned multiple tasks
Answer: A. Jobs should be divided into specialized tasks to improve
efficiency
Q24. A business
plan is:
A. A document
that outlines the goals and strategies of a business
B. A report on the financial performance of a business
C. A marketing strategy document
D. A budget for the upcoming year
Answer: A. A document that outlines the goals and strategies of a
business
Q25. The
"profit motive" in a business refers to:
A. The desire
to help others
B. The aim of increasing revenues and reducing costs
C. The goal of providing social services
D. The goal of maximizing employee welfare
Answer: B. The aim of increasing revenues and reducing costs
Q26. Which of
the following is an example of a fixed cost in a business?
A. Salaries of
permanent staff
B. Raw materials used in production
C. Commission to salespeople
D. Advertising expenses
Answer: A. Salaries of permanent staff
Q27. The
process of creating new products or improving existing products is known as:
A. Marketing
B. Research and development (R&D)
C. Sales management
D. Product placement
Answer: B. Research and development (R&D)
Q28. A
financial statement that shows the profitability of a business over a period of
time is known as:
A. Balance
sheet
B. Income statement
C. Cash flow statement
D. Profit and loss account
Answer: B. Income statement
Q29. A
"liability" in business refers to:
A. The owner's
equity in the business
B. An asset owned by the business
C. The debts and obligations of the business
D. The profit of the business
Answer: C. The debts and obligations of the business
Q30. In
accounting, the term "capital" refers to:
A. The total
revenue of the business
B. The assets and liabilities of the business
C. The funds invested by the owner or shareholders
D. The operational costs of the business
Answer: C. The funds invested by the owner or shareholders
Q31. Which of
the following is an example of a direct tax?
A. Sales tax
B. Income tax
C. Excise duty
D. Value-added tax (VAT)
Answer: B. Income tax
Q32. The
process of estimating future business performance is called:
A. Forecasting
B. Budgeting
C. Planning
D. Organizing
Answer: A. Forecasting
Q33. A market
structure where there are only a few large firms competing is known as:
A. Perfect
competition
B. Monopoly
C. Oligopoly
D. Monopolistic competition
Answer: C. Oligopoly
Q34. The
"law of diminishing returns" suggests that:
A. Increasing
the number of workers will always increase output proportionally
B. The more units of a factor of production are added, the less additional
output will be generated
C. The level of output remains constant regardless of input
D. The more efficient workers are, the greater the returns
Answer: B. The more units of a factor of production are added, the less
additional output will be generated
Q35. The
"break-even point" is:
A. When total
revenue equals total costs
B. The point at which a company incurs its highest costs
C. The point where sales exceed total costs
D. When a company is operating at a loss
Answer: A. When total revenue equals total costs
Q36.
"Liquidity" in business refers to:
A. The ability
of a business to generate profits
B. The ability of a business to meet short-term obligations
C. The amount of sales a business makes
D. The long-term solvency of a business
Answer: B. The ability of a business to meet short-term obligations
Q37. Which of
the following is an example of a non-current asset?
A. Cash
B. Inventory
C. Land
D. Accounts receivable
Answer: C. Land
Q38. The
"corporate social responsibility" (CSR) of a business refers to:
A. Maximizing
profits at any cost
B. The company's legal obligations
C. The obligation to contribute to the well-being of society
D. The company's marketing strategy
Answer: C. The obligation to contribute to the well-being of society
Q39. Which of
the following is the primary purpose of financial management?
A. To ensure
that a business runs smoothly
B. To manage the company's operations
C. To maximize shareholder wealth
D. To reduce the cost of production
Answer: C. To maximize shareholder wealth
Q40.
"Financial leverage" refers to:
A. The use of
debt to finance a company's assets
B. The increase in equity investment by shareholders
C. The proportion of cash to sales in a company
D. The company's ability to repay short-term liabilities
Answer: A. The use of debt to finance a company's assets
Q41. In
business, "marginal cost" refers to:
A. The total
cost of producing goods
B. The additional cost incurred when producing one more unit of output
C. The cost of raw materials used in production
D. The average cost per unit of output
Answer: B. The additional cost incurred when producing one more unit of
output
Q42. The
"time value of money" concept suggests that:
A. Money is
more valuable today than it will be in the future due to inflation and
opportunity costs
B. Money always has the same value over time
C. Future money is worth more than money today
D. Money loses value due to interest rates
Answer: A. Money is more valuable today than it will be in the future
due to inflation and opportunity costs
Q43. A
"cash flow statement" shows:
A. The
profitability of the company
B. The change in the company's financial position over a period
C. The company's total liabilities
D. The company's income for the year
Answer: B. The change in the company's financial position over a period
Q44. The
"principle of unity of command" means that:
A. An employee
should receive orders from only one superior
B. Employees should be empowered to make independent decisions
C. The entire organization should follow the same chain of command
D. Employees should be trained regularly
Answer: A. An employee should receive orders from only one superior
Q45. Which of
the following is an example of a public sector undertaking (PSU)?
A. Tata Steel
B. Infosys
C. Indian Oil Corporation
D. Reliance Industries
Answer: C. Indian Oil Corporation
Q46.
"Porter's Five Forces" model analyzes:
A. The
bargaining power of buyers, suppliers, industry rivalry, threat of new
entrants, and threat of substitutes
B. The five stages of product development
C. The environmental impacts of business activities
D. The financial position of companies in an industry
Answer: A. The bargaining power of buyers, suppliers, industry rivalry,
threat of new entrants, and threat of substitutes
Q47. The
"product life cycle" stages are:
A.
Introduction, Growth, Maturity, Decline
B. Launch, Growth, Decline, Exit
C. Concept, Testing, Production, Growth
D. Start-up, Expansion, Profit, Recession
Answer: A. Introduction, Growth, Maturity, Decline
Q48. The
"marketing channel" refers to:
A. The method
of financial transaction between buyers and sellers
B. The route through which products are distributed to customers
C. The communication channels used for promotions
D. The tools used to measure marketing effectiveness
Answer: B. The route through which products are distributed to customers
Q49. The
"matrix structure" of an organization is typically:
A. Used in
large organizations with multiple product lines
B. Characterized by rigid hierarchical levels
C. The same as a functional structure
D. Used in small organizations with few products
Answer: A. Used in large organizations with multiple product lines
Q50. A
"business incubator" is:
A. A legal
entity for a group of investors
B. A space that supports start-up businesses with resources and services
C. A type of business loan offered to new ventures
D. A government agency overseeing business activities
Answer: B. A space that supports start-up businesses with resources and
services
Auditing – 50
MCQs
Q1. The main
objective of an audit is to:
A. Detect fraud
B. Express an opinion on financial statements
C. Protect the interests of shareholders
D. Ensure compliance with regulations
Answer: B. Express an opinion on financial statements
Q2. Which of
the following is a part of the internal control system?
A.
Authorization of transactions
B. Recording of transactions
C. Safeguarding of assets
D. All of the above
Answer: D. All of the above
Q3. The term
"materiality" in auditing refers to:
A. The
significance of an item in financial statements
B. The size of a company’s assets
C. The cost of the audit
D. The number of errors found in the financial statements
Answer: A. The significance of an item in financial statements
Q4. The person
responsible for conducting an audit is called the:
A. Auditor
B. Accountant
C. Internal auditor
D. Auditor General
Answer: A. Auditor
Q5. An auditor
must obtain sufficient appropriate audit evidence to:
A. Form an
opinion on the financial statements
B. Reconcile the financial statements with tax returns
C. Prepare financial statements
D. Determine the future performance of the company
Answer: A. Form an opinion on the financial statements
Q6. Which of
the following is NOT a type of audit?
A. Internal
audit
B. External audit
C. Operational audit
D. Marketing audit
Answer: D. Marketing audit
Q7. The process
of reviewing an entity’s financial statements to ensure accuracy and fairness
is called:
A. Budgeting
B. Auditing
C. Consulting
D. Taxation
Answer: B. Auditing
Q8. The opinion
of the auditor on the financial statements is:
A. Unqualified
B. Qualified
C. Adverse
D. All of the above
Answer: D. All of the above
Q9. The scope
of an audit includes:
A. Examination
of financial statements
B. Verification of accounting records
C. Evaluation of internal controls
D. All of the above
Answer: D. All of the above
Q10. The audit
report is signed by the:
A. Company CEO
B. Auditor
C. Shareholders
D. CFO
Answer: B. Auditor
Q11. What is
the primary responsibility of an auditor?
A. To prepare
financial statements
B. To ensure tax compliance
C. To express an opinion on the financial statements
D. To detect fraud
Answer: C. To express an opinion on the financial statements
Q12. Which of
the following is an example of an audit procedure?
A. Observation
of inventory
B. Examination of financial records
C. Confirmation from third parties
D. All of the above
Answer: D. All of the above
Q13. The audit
process begins with:
A. Conducting
interviews
B. Risk assessment
C. Collection of audit evidence
D. Preparation of financial statements
Answer: B. Risk assessment
Q14. Which of
the following is a limitation of auditing?
A. Limited
scope of audit work
B. Auditor’s reliance on client’s representations
C. The use of judgment in auditing
D. All of the above
Answer: D. All of the above
Q15. The audit
report is typically issued after:
A. The
financial statements are prepared
B. The year-end closing of accounts
C. The financial year ends
D. The audit findings are concluded
Answer: D. The audit findings are concluded
Q16. The
concept of "due professional care" in auditing requires the auditor
to:
A. Be diligent
in planning and conducting the audit
B. Ensure the client’s compliance with tax laws
C. Prepare financial statements
D. Ensure that employees are paid correctly
Answer: A. Be diligent in planning and conducting the audit
Q17. An audit
conducted by an external auditor is referred to as:
A. Financial
audit
B. Tax audit
C. Statutory audit
D. Internal audit
Answer: C. Statutory audit
Q18. The
independence of the auditor is important to:
A. Ensure that
the audit is objective and unbiased
B. Help the auditor form an opinion on the financial statements
C. Prevent conflicts of interest
D. All of the above
Answer: D. All of the above
Q19. In
auditing, "substantive testing" involves:
A. Verifying
the financial statement balances through detailed tests
B. Examining the internal control system
C. Testing the efficiency of the business operations
D. Evaluating the company’s compliance with legal requirements
Answer: A. Verifying the financial statement balances through detailed
tests
Q20. The audit
of internal controls is necessary because:
A. It ensures
the accuracy of financial reporting
B. It helps in identifying fraud
C. It reduces the risk of errors and fraud
D. All of the above
Answer: D. All of the above
Q21. "An
audit trail" refers to:
A. The method
used to track errors in financial statements
B. The documentation that supports the financial statements
C. A path followed by auditors to verify records
D. The legal process for handling audit discrepancies
Answer: B. The documentation that supports the financial statements
Q22. An
auditor's report can include a:
A. Qualified
opinion
B. Unqualified opinion
C. Adverse opinion
D. All of the above
Answer: D. All of the above
Q23. Which of
the following is a common audit technique?
A. Inquiry
B. Observation
C. Recalculation
D. All of the above
Answer: D. All of the above
Q24. The
concept of "audit risk" is:
A. The risk
that the auditor may fail to detect material misstatements
B. The risk of fraud occurring during the audit
C. The likelihood of errors being found in the audit report
D. The risk of the audit being too costly
Answer: A. The risk that the auditor may fail to detect material
misstatements
Q25. Auditors
are required to provide an opinion on:
A. The accuracy
of the financial statements
B. The efficiency of the business operations
C. The compliance with government regulations
D. All of the above
Answer: A. The accuracy of the financial statements
Auditing –
Q26–50
Q26. Which of
the following is NOT a responsibility of an auditor?
A. Ensuring the
preparation of accurate financial statements
B. Providing an opinion on the financial statements
C. Identifying fraud during the audit
D. Ensuring compliance with accounting standards
Answer: A. Ensuring the preparation of accurate financial statements
Q27. An
auditor's "independence" refers to:
A. Their
ability to review company financials
B. The absence of conflicts of interest in the audit process
C. Their willingness to cooperate with management
D. Their ability to detect fraud
Answer: B. The absence of conflicts of interest in the audit process
Q28. A
qualified audit opinion is given when:
A. There is no
material misstatement in the financial statements
B. The auditor cannot form an opinion due to insufficient evidence
C. The financial statements are prepared incorrectly
D. There is a significant issue that affects the financial statements
Answer: D. There is a significant issue that affects the financial
statements
Q29. The
"audit evidence" refers to:
A. The final
opinion of the auditor
B. The financial data provided by the client
C. The information used to support the auditor’s opinion
D. The conclusions drawn by management
Answer: C. The information used to support the auditor’s opinion
Q30. The risk
of the auditor failing to detect material misstatements is known as:
A. Detection
risk
B. Control risk
C. Inherent risk
D. Audit risk
Answer: A. Detection risk
Q31. Which of
the following best describes "internal control" in auditing?
A. A system to
ensure that financial statements are accurate
B. A method of verifying the compliance with tax laws
C. The process by which an auditor ensures financial transparency
D. A set of procedures designed to ensure the reliability of financial
reporting
Answer: D. A set of procedures designed to ensure the reliability of
financial reporting
Q32. The
"auditor's report" generally includes:
A. The
auditor’s opinion
B. The audit procedure followed
C. The client’s financial strategy
D. The auditor’s recommendations for improving business operations
Answer: A. The auditor’s opinion
Q33.
"Substantive procedures" in auditing refer to:
A. Tests of
controls
B. Procedures to verify the financial statement balances
C. Tests of internal controls
D. Procedures to evaluate management’s judgment
Answer: B. Procedures to verify the financial statement balances
Q34. The
concept of "audit evidence" is based on:
A. Verification
of the financial statements
B. Gathering sufficient and appropriate information to support the auditor's
opinion
C. The auditor’s interview with management
D. The auditor’s review of company policies
Answer: B. Gathering sufficient and appropriate information to support
the auditor's opinion
Q35.
"Sampling" in auditing refers to:
A. Selecting a
few transactions to test the entire population
B. Selecting an external auditor for a client
C. Verifying all records of a company
D. The process of collecting evidence from external sources
Answer: A. Selecting a few transactions to test the entire population
Q36. Which of
the following is an example of "substantive testing"?
A. Inspecting
the physical inventory
B. Reviewing internal control procedures
C. Calculating the financial ratios
D. Confirming the existence of accounts receivable with customers
Answer: D. Confirming the existence of accounts receivable with
customers
Q37. In the
context of auditing, the term "audit trail" refers to:
A. The history
of the audit findings
B. The process of following financial transactions from start to finish
C. A pathway followed by auditors during the audit
D. The records kept by management during the audit
Answer: B. The process of following financial transactions from start to
finish
Q38. Which of
the following is the primary focus of an audit of financial statements?
A. Detecting
fraud
B. Assessing management’s performance
C. Forming an opinion on the accuracy of financial statements
D. Evaluating business operations
Answer: C. Forming an opinion on the accuracy of financial statements
Q39. An
auditor's work papers are:
A. Written
records that document the audit procedures performed
B. Reports prepared for management
C. Legal documents that support the audit opinion
D. Documents used to verify the internal controls of a company
Answer: A. Written records that document the audit procedures performed
Q40. The
"scope" of an audit refers to:
A. The
geographical area covered by the audit
B. The timeframe in which the audit is conducted
C. The depth and extent of the audit procedures performed
D. The financial resources allocated to the audit
Answer: C. The depth and extent of the audit procedures performed
Q41. An
"unqualified audit opinion" indicates:
A. There is a
material misstatement in the financial statements
B. The financial statements are free from material misstatements and prepared
in accordance with applicable standards
C. The auditor is unable to form an opinion due to insufficient evidence
D. The financial statements are not in compliance with accounting standards
Answer: B. The financial statements are free from material misstatements
and prepared in accordance with applicable standards
Q42. An
auditor’s primary concern in a financial audit is to:
A. Provide
business consulting to the client
B. Detect fraud
C. Express an opinion on the fairness and accuracy of the financial statements
D. Evaluate the efficiency of the company’s operations
Answer: C. Express an opinion on the fairness and accuracy of the
financial statements
Q43. The
standard for the quality of audit work is established by:
A. The client
company
B. The auditing firm
C. Government regulations
D. International auditing standards
Answer: D. International auditing standards
Q44. Which of
the following is considered an audit procedure?
A.
Recalculation of depreciation
B. Reviewing marketing strategies
C. Analyzing a company’s mission statement
D. Conducting an internal control audit
Answer: A. Recalculation of depreciation
Q45. Which of
the following best describes "materiality" in auditing?
A. The amount
of resources allocated to the audit
B. The relative importance of an item to the financial statements
C. The amount of time spent on audit procedures
D. The percentage of a company’s income allocated to audit fees
Answer: B. The relative importance of an item to the financial
statements
Q46.
"Audit risk" includes:
A. The risk
that an auditor will give an inappropriate opinion
B. The risk of a company’s financial misstatements
C. The risk that the client will not comply with audit standards
D. The risk that auditors will miss key evidence
Answer: A. The risk that an auditor will give an inappropriate opinion
Q47. Which of
the following is NOT part of the audit process?
A. Risk
assessment
B. Preparation of financial statements
C. Testing and evaluation of financial data
D. Reporting findings to stakeholders
Answer: B. Preparation of financial statements
Q48. The role
of "audit committees" is to:
A. Approve
audit workpapers
B. Provide the audit firm with strategic business advice
C. Oversee the audit process and ensure auditor independence
D. Prepare audit reports
Answer: C. Oversee the audit process and ensure auditor independence
Q49. The
"audit opinion" is:
A. A summary of
the auditor’s findings
B. A formal statement of whether financial statements are accurate and fair
C. A list of recommendations for the company
D. A report detailing company policies
Answer: B. A formal statement of whether financial statements are
accurate and fair
Q50. Which of
the following is the responsibility of the internal auditor?
A. To provide
an opinion on the financial statements
B. To detect and prevent fraud
C. To oversee the work of external auditors
D. To assess the effectiveness of the internal control system
Answer: D. To assess the effectiveness of the internal control system