SUPERINTENDENT- FINANCE – KERALA AGRO MACHINERY CORPORATION LTD

FINAL ANSWER KEY
Question Paper Code: 28/2017/OL
Category Code: 367/2015
Exam: Superintendent Finance
Medium of Question: English
Date of Test 10-04-2017
Department Kerla Agro Machinery corp Ltd
Alphacode A
Question1:-Newly elected Secretary General of UNO ?
A:-Antonio Guteress
B:-Ban Ki Moon
C:-Boutros Gali
D:-Kurt Waldheim
Correct Answer:- Option-A
Question2:-Who won Man Booker Prize 2016 ?
A:-Paul Beatty
B:-Ben Okri
C:-J. M. Coetzee
D:-Yann Martel
Correct Answer:- Option-A
Question3:-Who is the first woman who climbed Mount Everest ?
A:-Tamae Watanabe
B:-Malavath Purna
C:-Arunima Sinha
D:-Junko Tabei
Correct Answer:- Option-D
Question4:-The Preamble of our Constitution makes no mention of
A:-Justice
B:-Fraternity
C:-Liberty
D:-Adult Franchise
Correct Answer:- Option-D
Question5:-First Principal of CMS College, Kottayam ?
A:-Henry Baker
B:-Benjamin Bailey
C:-Joseph Fenn
D:-Thomas Norton
Correct Answer:- Option-B
Question6:-First Diwan of Travancore
A:-Sir C. P. Ramaswami Iyer
B:-Raja Kesava Das
C:-C. Rajagopalachari
D:-Ramayyan Dalawa
Correct Answer:- Option-B
Question7:-First Trade Union formed in Kerala
A:-Labour Union
B:-Labour Front
C:-Thiruvithamkoor Labour Association
D:-Thiruvithamkoor Labour League
Correct Answer:- Option-C
Question8:-First autobiography in Malayalam was written by
A:-Benjamin Bailey
B:-Vaikom Pachu Moothathu
C:-Vengayil Kunjiraman Nair
D:-V. C. Balakrishna Panicker
Correct Answer:- Option-B
Question9:-Author of Malabar Manual
A:-Lt. Ward and Conner
B:-T. K. Velu Pillai
C:-P. Shangunni Menon
D:-William Logan
Correct Answer:- Option-D
Question10:-The peculiar dance form of Kerala
A:-Bharatanatyam
B:-Kuchippudi
C:-Mohiniyattam
D:-Koodiyattam
Correct Answer:- Option-C
Question11:-The poetic work written by Kumaran Asan on the basis of the book The Gospel of Buddha
A:-Duravastha
B:-Leela
C:-Karuna
D:-Nalini
Correct Answer:- Option-C
Question12:-Author of Jatikkummi ?
A:-Pandit K. P. Karuppan
B:-Kumaran Asan
C:-Sri Narayana Guru
D:-Muloor
Correct Answer:- Option-A
Question13:-Which palace is known as Mural Pagoda ?
A:-Dutch Palace, Bolgatty
B:-Hill Palace, Thrippunithura
C:-Krishnapuram
D:-Padmanabhapuram
Correct Answer:- Option-D
Question14:-The magazine started by Namboothiri Yuvajana Sangham in 1920
A:-Kahalam
B:-Paura Prabha
C:-Unni Namboothiri
D:-Yuvajana Vartha
Correct Answer:- Option-C
Question15:-The brain behind Ezhava Memorial
A:-T. K. Madhavan
B:-G. P. Pillai
C:-R. Sankar
D:-Dr. Palpu
Correct Answer:- Option-D
Question16:-Samatwa Samajam was founded by
A:-Thyeaud Ayya
B:-Vaikunta Swamikal
C:-Brahmananda Sivayogi
D:-Vagbhatananda
Correct Answer:- Option-B
Question17:-Sree Narayana Sevika Samajam, Aluva, was founded by
A:-Parvathi Ayyappan
B:-Arya Pallom
C:-Devaki Narikkattiri
D:-Priyadatta Kallatt
Correct Answer:- Option-A
Question18:-First Printing Press was established in which District ?
A:-Thiruvananthapuram
B:-Kollam
C:-Kottayam
D:-Alappuzha
Correct Answer:- Option-C
Question19:-Herman Gundert belonged to which missionary movement ?
A:-CMS
B:-Basel Mission
C:-LMS
D:-Zenana Mission
Correct Answer:- Option-B
Question20:-Who was the author of the poem ‘Ente Gurunathan’ about Gandhiji ?
A:-Vallathol
B:-Ulloor
C:-Kumaran Asan
D:-Mannathu Padmanabhan
Correct Answer:- Option-A
Question21:-Which of the following statement is not correct in relation to reduction of share capital ?
A:-A special resolution must be passed for the reduction of share capital
B:-Reduction of capital is subject to confirmation by the court
C:-Articles of association must authorise the company to reduce its share capital
D:-None of the above
Correct Answer:- Option-D
Question22:-Which of the following statement is not correct in relation to redemption of preference shares ?
A:-Partly paid up preference shares cannot be redeemed
B:-Capital redemption reserve cannot be used for issuing bonus shares
C:-Premium on redemption of preference shares can be provided out of share premium account
D:-None of the above
Correct Answer:- Option-B
Question23:-Which one of the following transactions will affect the flow of fund (Fund flow statement) ?
A:-Cash sale of goods
B:-Goods sold on credit
C:-Machinery sold to a creditor to settle his account
D:-Providing depreciation for a fixed asset
Correct Answer:- Option-C
Question24:-Which among the following profit is taken to calculate the Earnings per share ?
A:-Earnings after paying interest, tax and dividend to preference shareholders
B:-Earnings after paying interest and tax, but before paying any type of dividend
C:-Earnings after paying interest, but before paying tax and any type of dividend
D:-Earnings before paying interest, tax and any type of dividend
Correct Answer:- Option-A
Question25:-Which of the following method is not used for the computation of Purchase consideration ?
A:-Ratio of exchange method
B:-Net asset method
C:-Net payment method
D:-None of the above
Correct Answer:- Option-D
Question26:-What is the value of stock if Current ratio is 2.5, Liquid ratio is 1.5 and Working capital is Rs. 30,000 ?
A:-10,000
B:-20,000
C:-30,000
D:-50,000
Correct Answer:- Option-B
Question27:-Which of the following is available for redemption of preference shares ?
A:-Security Premium Account
B:-Capital Redemption Reserve
C:-Workmen’s Compensation Fund
D:-None of the above
Correct Answer:- Option-C
Question28:-Which of the following cannot be used for issuing bonus shares ?
A:-Capital redemption Reserve
B:-Securities Premium collected in cash
C:-Capital reserve arising due to revaluation of assets
D:-Debenture Redemption Reserve after redemption of debentures
Correct Answer:- Option-C
Question29:-Rate of underwriting commission should not exceed
A:-2½% of the issue price of shares
B:-5% of the issue price of shares
C:-5% of the market price or 2½% of the issue price of shares whichever is less
D:-2½% of the market price or 5% of the issue price of shares whichever is less
Correct Answer:- Option-B
Question30:-Open underwriting is an agreement for underwriting
A:-The whole issue of shares or debentures
B:-A part of the whole shares or debentures
C:-Shares or debentures not subscribed by the public
D:-To buy a fixed number of shares or debentures
Correct Answer:- Option-C
Question31:-Which of the following is not an intangible asset ?
A:-Goodwill
B:-Computer software
C:-Copy rights and patents
D:-None of the above
Correct Answer:- Option-D
Question32:-Which of the following is not classified as ‘Inventories’ ?
A:-Work-in-progress
B:-Stores and spares
C:-Loose tools
D:-None of the above
Correct Answer:- Option-D
Question33:-Which of the following can be ignored for paying dividend out of revenue profit ?
A:-Arrears of depreciation
B:-Accumulated losses (losses during earlier years)
C:-Transfer a certain percentage of profit to reserves
D:-None of the above
Correct Answer:- Option-D
Question34:-Which of the following is an objective of Internal Reconstruction ?
A:-For eliminating competition
B:-For eliminating fictitious assets
C:-For securing larger share in the market
D:-All the above
Correct Answer:- Option-B
Question35:-Which of the following is not correct for debenture issue ?
A:-Debentures can be issued for cash
B:-Debentures can be issued in lieu of dividend
C:-A company can buy its own debentures
D:-Debentures can be issued for consideration other than cash
Correct Answer:- Option-B
Question36:-Which of the following is not miscellaneous expenditure ?
A:-Preliminary expenses
B:-Research and Development expenditure
C:-Brokerage on issue of shares
D:-Goodwill yet to be written off
Correct Answer:-Question Cancelled
Question37:-Which of the following will affect the trial balance ?
A:-Loan given to employee was accounted as salary paid
B:-Repairs to building debited to Building A/c
C:-Sales return was accounted as purchase
D:-None of the above
Correct Answer:- Option-D
Question38:-Payout ratio indicates as to
A:-What proportion of net profit has been used for paying dividend ?
B:-What proportion of revenue has been used for meeting expenses ?
C:-What proportion of earnings per share has been used for paying dividend ?
D:-What proportion of net profit has been used for paying interest and tax ?
Correct Answer:- Option-C
Question39:-Determination of the amount of provision for doubtful debts in accounting is
A:-Policy
B:-Estimate
C:-Parameter
D:-None of the above
Correct Answer:- Option-B
Question40:-Change in method of depreciation is a change in
A:-Accounting Policy
B:-Accounting Method
C:-Measurement Discipline
D:-None of the above
Correct Answer:- Option-A
Question41:-______ method is most suitable in times of decreasing the price of raw materials in the market.
A:-FIFO
B:-LIFO
C:-Base stock
D:-Average cost
Correct Answer:- Option-A
Question42:-Which among the following results in the over absorption of overheads ?
A:-Actual volume of output is less than the estimated lebvel of production
B:-Overhead actually incurred is more than the estimated overhead
C:-Standard overhead recovery rate fixed is more than the actual
D:-None of the above
Correct Answer:- Option-C
Question43:-Breakeven point will not be changed if
A:-P/V ratio is decreased
B:-Sales volume is decreased
C:-Selling price per unit is decreased
D:-Variable cost per unit is decreased
Correct Answer:- Option-B
Question44:-Margin of safety is increased when
A:-Variable cost per unit is increased
B:-Fixed cost is decreased
C:-Selling price per unit is decreased
D:-Sales volume is decreased
Correct Answer:- Option-B
Question45:-Calculate Fixed cost if P/V ratio is 40% and Margin of Safety is Rs. 30,000, which is 15% of sales
A:-Rs. 68,000
B:-Rs. 70,000
C:-Rs. 75,000
D:-Rs. 1,70,000
Correct Answer:- Option-A
Question46:-Which among the following is correct ?
A:-Fixed Overhead Volume Variance = Capacity Variance + Calendar Variance + Efficiency Variance
B:-Fixed Overhead Capacity Variance = Volume Variance + Calendar Variance + Efficiency Variance
C:-Fixed Overhead Cost Variance = Capacity Variance + Volume Variance + Efficiency Variance
D:-None of the above
Correct Answer:- Option-A
Question47:-Which among the following is not a costing technique ?
A:-Process Costing
B:-Standard Costing
C:-Marginal Costing
D:-Budgetary Control
Correct Answer:- Option-A
Question48:-Which of the following is not treated as selling and distribution overhead in cost accounts ?
A:-Advertisement
B:-Cash discount
C:-Salesmen salary
D:-None of the above
Correct Answer:- Option-B
Question49:-Materials requisition denotes
A:-An authorisation to store keeper to issue materials
B:-Formal demand to the purchase department to purchase an item
C:-List of materials required for a particular job
D:-None of the above
Correct Answer:- Option-A
Question50:-Which of the following is included in Cost accounts ?
A:-Bad debt
B:-Loss due to strike
C:-Income tax paid
D:-Underwriting commission
Correct Answer:-Question Cancelled
Question51:-Which of the following item is not added/subtracted to/from purchase price to arrive at the material cost price
in cost accounting ?
A:-Trade discount allowed by the suppliers
B:-Quantity discount allowed by the suppliers
C:-Cash discount allowed by the suppliers
D:-Excise duty paid for the goods purchased
Correct Answer:- Option-C
Question52:-Which of the following is not a method of pricing of material issue ?
A:-HIFO Method
B:-Inflated Price Method
C:-Standard Price Method
D:-None of the above
Correct Answer:- Option-D
Question53:-Time booking means
A:-Correct recording of employees’ attendance time
B:-Recording actual time taken by worker on various jobs
C:-Recording of employees’ attendance, absence, normal loss and abnormal loss of working hours
D:-All the above
Correct Answer:- Option-B
Question54:-Rowan Plan is an example of
A:-Time rate system
B:-Piece rate system
C:-Incentive scheme
D:-Differential piece rate system
Correct Answer:- Option-C
Question55:-Over-absorbed or under-absorbed overheads may be disposed off by
A:-Use of supplementary rate
B:-Write off to Costing Profit and Loss Account
C:-Carry forward to the next year’s account
D:-All the above
Correct Answer:- Option-D
Question56:-Prime cost plus variable overheads is known as
A:-Cost of sales
B:-Production cost
C:-Marginal cost
D:-Total cost
Correct Answer:- Option-C
Question57:-In process costing, __________ will not affect the cost of inventory.
A:-Normal loss
B:-Abnormal loss
C:-Standard loss
D:-Seasonal loss
Correct Answer:- Option-B
Question58:-In sugar industry, molasses is
A:-Joint product
B:-Bye-product
C:-Waste
D:-Scrap
Correct Answer:- Option-B
Question59:-Which of the following entry is applicable in relation to abnormal gain in process account ?
A:-Process A/c is debited and Abnormal Gain A/c is credited
B:-Abnormal Gain A/c is debited and Normal loss A/c is credited
C:-Abnormal gain A/c is debited and Costing Profit and loss A/c is credited
D:-None of the above
Correct Answer:-Question Cancelled
Question60:-Which of the following is added to costing profit to arrive at financial profit ?
A:-Income Tax paid
B:-Under absorption of overheads
C:-Rent received
D:-Interest on debentures paid
Correct Answer:- Option-C
Question61:-Which of the following is not a long term financial decision ?
A:-Dividend decision
B:-Financing decision
C:-Liquidity decision
D:-Investment decision
Correct Answer:- Option-C
Question62:-Contingent investments mean
A:-Choice of one investment necessitates undertaking one or more other investment (s)
B:-Investments made during emergency situations in which no emphasis for profit
C:-Investments made for disposing when a contingency occurs in future
D:-None of the above
Correct Answer:- Option-A
Question63:-Which of the following is not applicable to Mutually Exclusive Investments ?
A:-They serve the same purpose
B:-They compete with each other
C:-If one is undertaken, others will have to be excluded
D:-None of the above
Correct Answer:- Option-D
Question64:-Which of the following is not correct in the case of NPV Method ?
A:-Appropriate discount factor is identified using the opportunity cost of capital
B:-Expected net profit in the whole life of the asset is taken into account for discounting
C:-Annual depreciation to be provided for the asset is ignored for evaluating the project
D:-Salvage value of the asset is discounted for the evaluation
Correct Answer:- Option-B
Question65:-Which of the following method does not consider the time value of money ?
A:-NPV Method
B:-ARR Method
C:-Profitability Index Method
D:-None of the above
Correct Answer:- Option-B
Question66:-Which of the following statement is not correct ?
A:-NPV of a project declines as the discount rate increases
B:-NPV will be negative if discount rate is lower than IRR
C:-Project is rejected if IRR is lower than the opportunity cost of capital
D:-None of the above
Correct Answer:- Option-B
Question67:-When Profitability Index (PI) is zero,
A:-Value of discounted future cash inflows and outflows are same
B:-The firm will be running at BEP and hence no return on investment
C:-Expected total revenues are equal to total variable cost (excluding depreciation)
D:-None of the above
Correct Answer:- Option-A
Question68:-Which method is most suitable to a firm if the demand of its product is based on latest technology ?
A:-Payback Period Method
B:-Profitability Index Method
C:-Net Present Value Method
D:-Average Rate of Return Method
Correct Answer:- Option-A
Question69:-Just-In-Time (JIT) Management is a model used for the management of
A:-Inventory
B:-Debtors
C:-Casual workers
D:-Production
Correct Answer:- Option-A
Question70:-Which of the following statement is wrong in relation to Miller-Orr-Model ?
A:-Upper and lower limits of cash are fixed
B:-It assumes the uniform pattern of cash inflows and outflows
C:-It rectifies the shortcoming of Baumol’s Model
D:-None of the above
Correct Answer:- Option-B
Question71:-Which of the following statement is correct in relation to Baumol’s Model ?
A:-It helps in determining a firm’s optimum cash balance
B:-It assumes that cash payments of the firm occur uniformly over a period of time
C:-As per this model, cash and inventory management problems are one and the same
D:-All the above
Correct Answer:- Option-D
Question72:-Which among the following is a remedy for under capitalisation ?
A:-Redeem long-term debt by issue of fresh equity shares
B:-Issue bonus shares by capitalising accumulated earnings
C:-Issue of right shares by capitalising accumulated earnings
D:-None of the above
Correct Answer:- Option-D
Question73:-Which among the following is a reason for over capitalisation ?
A:-Under-estimation of future earnings
B:-Liberal dividend policy
C:-Depreciation charged at a lower rate
D:-None of the above
Correct Answer:- Option-A
Question74:-Float management is related to
A:-Cash
B:-Goodwill
C:-Inventory
D:-Fixed assets
Correct Answer:- Option-A
Question75:-Lock box system is used to
A:-Reduce the chances of delay and fraud in collection process of cash/cheque
B:-Control the unauthorised withdrawal of cash from cash box
C:-Control the unauthorised access of financial documents
D:-None of the above
Correct Answer:- Option-A
Question76:-Reverse split means
A:-Cancellation of preference shares by redemption
B:-Increasing the number of outstanding shares by issuing bonus shares or right shares
C:-Increasing the face value of shares by consolidating the denomination of existing shares
D:-Increasing the number of outstanding shares without any change in the total capital
Correct Answer:- Option-C
Question77:-Which of the following theories says that the value of a firm does not change due to change in dividend paid ?
A:-Walter’s Model
B:-Gorden’s Model
C:-Modigliani and Miller
D:-None of the above
Correct Answer:- Option-C
Question78:-Bird-in-the-hand theory is related to
A:-Cost of capital
B:-Capital budgeting
C:-Dividend
D:-None of the above
Correct Answer:- Option-C
Question79:-Stable dividend policy means
A:-Constant dividend per share
B:-Constant percentage of earnings
C:-Minimum rate of dividend per share plus extra dividend when the company has huge profits
D:-All the above
Correct Answer:- Option-D
Question80:-Scrip dividend means
A:-Dividend in the form of new shares rather than in cash
B:-Arrear dividend paid to preference shareholders in the form of assets
C:-Issue of transferable promissory note to pay shareholders at a later date
D:-Dividend paid before a company’s annual general meeting of company as advance
Correct Answer:- Option-C
Question81:-Teaming and lading denotes
A:-Book keeping fraud
B:-Delayed accounting
C:-Hiding shortage of cash
D:-All the above
Correct Answer:- Option-D
Question82:-Audit conducted between two Periodical or Balance Sheet audit is known as
A:-Interim audit
B:-Post audit
C:-External audit
D:-None of the above
Correct Answer:- Option-A
Question83:-Audit note book is maintained by
A:-Chief auditor
B:-Internal auditor
C:-Audit clerk
D:-None of the above
Correct Answer:- Option-C
Question84:-Who is the owner of Audit working paper ?
A:-Auditor
B:-Client
C:-Company
D:-None of the above
Correct Answer:- Option-A
Question85:-Which of the following does not affect the independence of an auditor ?
A:-Integrity
B:-Objectivity
C:-Materiality
D:-Professional Behavior
Correct Answer:- Option-C
Question86:-Auditing planning need not cover
A:-Acquiring knowledge about the client’s accounting system
B:-Establishing expected degree of reliance
C:-Determining the amount of expense to be incurred
D:-Co-ordinating the work to be performed
Correct Answer:- Option-C
Question87:-The technique used to evaluate the internal control system in the organisation
A:-Risk assessment procedure
B:-Narrative records
C:-Observation
D:-Enquiry with management
Correct Answer:-Question Cancelled
Question88:-Audit documentation does not include
A:-Audit programme
B:-Issues Memoranda
C:-Engagement letter
D:-Letter of confirmation and representation
Correct Answer:- Option-C
Question89:-The principle for verification of intangible assets are
A:-Existence, Ownership, Valuation, Internal control
B:-Records and registers, Ownership, Valuation, Internal control
C:-Rights, Existence, Ownership, Valuation
D:-Existence, Rights, Revaluation of asset, Internal control
Correct Answer:- Option-B
Question90:-In which of the following situation the auditor will qualify his report ?
A:-He is not satisfied with the accounts presented to him
B:-He finds some discrepancy in the treatment of an item
C:-Management is not ready to make the desired changes
D:-All the above
Correct Answer:- Option-D
Question91:-The best audit report is
A:-Modified report with qualified opinion
B:-Modified report with disclaimer of opinion
C:-Unmodified report with qualified opinion
D:-Unmodified report with unqualified opinion
Correct Answer:- Option-D
Question92:-Goodwill is
A:-Fictitious, but may not be intangible asset
B:-Intangible, but may not be fictitious asset
C:-Intangible and Fictitious asset
D:-None of the above
Correct Answer:- Option-B
Question93:-Which of the following is not a Deferred Revenue Expenditure ?
A:-Experimental expenditure
B:-Plant rearrangement and removing costs
C:-Development expenditure in the case of plantations
D:-None of the above
Correct Answer:- Option-D
Question94:-Which among the following is not a Contingent liability ?
A:-Claims against the company not acknowledged as debt
B:-Liability in respect of bills discounted by the company, but not yet matured
C:-Arrears of dividend on cumulative preference shares issued by the company
D:-None of the above
Correct Answer:- Option-D
Question95:-Wasting assets are those assets which are
A:-Having low realisable value and hence sold as scrap
B:-Having high rate of depreciation and maintenance cost
C:-Exhausted in the process of working
D:-Having huge investment, but low return
Correct Answer:- Option-C
Question96:-Which of the following matter requiring qualification in audit report ?
A:-Contingent liability not disclosed
B:-Inadequate provision for doubtful debts
C:-Investment shown at cost price when its market price is far below
D:-All the above
Correct Answer:- Option-D
Question97:-Which of the following profit can be used for the payment of dividend ?
A:-Profit on sale of fixed assets
B:-Profit on revaluation of assets
C:-Profit on re-issue of forfeited shares
D:-None of the above
Correct Answer:- Option-A
Question98:-In which of the following area where different accounting policies can be adopted ?
A:-Providing depreciation
B:-Valuation of inventory
C:-Valuation of investments
D:-All the above
Correct Answer:- Option-D
Question99:-Which of the following statement is not correct ?
A:-Internal auditor is appointed by the shareholders of the company
B:-Employees of the company can be appointed as the internal auditor
C:-Internal audit is not compulsory
D:-None of the above
Correct Answer:- Option-A
Question100:-Teaming and lading means
A:-Bookkeeping fraud related to cash
B:-Misappropriation of goods
C:-Delayed payments to creditors
D:-Delayed payments to creditors and immediate collection from debtors
Correct Answer:- Option-A