Pondicherry Co-operative Junior Inspector 2006 Solved Paper

Pondicherry Co-operative Junior Inspector 2006 Solved Paper

1.    Financial statements generally mean
(A)   balance sheet                                  (B)    P & L account
(C)   balance sheet & P & L account      (D)    none

2.    Audit is an instrument of safeguard on behalf of
(A)   the Government     (B)    the proprietor
(C)   the creditor              (D)    the employees

3.    Auditing starts where
(A)   book-keeping ends  (B)    accountancy ends
(C)   inspection ends         (D)    enquiry ends

4.    The company audit report is sent to
(A)   the Government                (B) the creditor
(C)   the Board of Directors       (D) the shareholders

5.    Investigation is carried out on behalf of
(A)   the proprietors only      (B)    outsiders only
(C)   both                                 (D)    none

6.    The C & AG is appointed by
(A)   The Prime Minister                (B) The President
(C)   The Parliament                       (D) Shareholders

7.    Audit note book is maintained by
(A)   the auditor                   (B) the audit clerk
(C)   the Proprietors            (D) Creditors

8.    Working papers contain facts about
(A)   employees                   (B)    share holders
(C)   evidences                    (D)    accounts

9.    Test checking means
(A)   routine checking        (B)    sampling checking
(C)   complete checking     (D)    annual checking

10.   Audit programme is a plan of action for
(A)   the auditor and his clerks         (B)    the employees of the client
(C)   the client                                      (D)    the Board of Directors

11.   ABC is a control over
(A)   Finance    (B)    Closing Stock    (C)    Raw materials      (D)    Opening stock

12.   Internal audit is a work done by
(A)   the employees of the client
(B)   audit clerk of the auditor
(C)   employees of an independent agency
(D)   combined work of employees of the client and the audit clerks of the auditor

13.   Statutory audit is conducted
(A)   as a continuous audit
(B)   after the preparation of final accounts
(C)   before the preparation of final accounts
(D)   in between two annual audits

14.   Vouching
(A)   testing the truth of items appearing in the books of original entry
(B)   inspection of trading transactions
(C)   testing of contracts
(D)   verification of assets

15.   Lapping
(A)   internal auditing              (B) test checking
(C)   complete checking           (D) teaming and lading

16.   Teaming and lading
(A)   suppressing the records
(B)   forgery
(C)   shortage of raw materials
(D)   concealment of a shortage by delaying the recording of cash receipts

17. Piece rate system
(A) sales commission             (B) salary
(C) wages                                 (D) commission on profit

18. Outstanding rent account
(A) personal account               (B) real account
(C) a liability account              (D) a nominal account

19.   Sale on return basis is treated as
(A)   sales                        (B) goods with customers
(C)   sales return           (D) purchase return

20.   Journal
(A)   a book of prime entry
(B)   bills book
(C)   entries of debit and credit
(D)   a book with entries which cannot be passed through any other book of prime entry

21.   Bought ledger contains
(A)   the creditors account            (B) purchases
(C)   purchase returns                  (D) debtors account

22.   Audit of impersonal ledger
(A)   audit of sales ledger             (B) audit of bought ledger
(C)   audit of general ledger         (D) audit of debtors ledger

23.   Verification
(A)   proving the truth                 (B) checking the stock
(C)   verifying the records           (D) verifying the cash book

24.   Stock valuation
(A)   Cost price
(B)   Market price
(C)   Cost price or market price whichever is less
(D)   None

25.   Goodwill
(A)   tangible asset             (B) intangible asset
(C)   real asset                    (D) depleting asset

26.   Valuation of fixed assets
(A)   Cost price                                     (B) Market price
(C)   Cost price less depreciation       (D) Market price less depreciation

27.   Reserve is a profit set aside for
(A)   known liability
(B)   unknown liability
(C)   for a future asset
(D)   any unknown or known or contingent liability or decrease in the value of an asset

28.   General reserve is created out of
(A)   capital profit                                            (B) revenue profit
(C)   both capital and revenue profit GR     (D) cash receipts

29.   Sinking fund
(A)   a specific reserve          (B) a general reserve
(C)   a contingent reserve    (D) a pre-reserve

30.   First auditors of a company are appointed by
(A)   Share holders              (B) Government
(C)   Board of Directors       (D) Promoters of the company

31.   Income received in advance is
(A)   an asset             (B) a liability
(C)   an expense        (D) none of the above

32.   Purchase + Opening stock – Closing stock is
(A)   Sales                                (B) Equity
(C)   Cost of goods sold           (D) Loss

33.   A bill drawn and accepted without any consideration is called
(A)   Discounted bill            (B) Accommodation bill
(C)   Dishonoured bill          (D) None of the above

34.   Any revenue expense, for which a separate fund is available will be
(A)   Credited to the separate fund
(B)   Debited to the separate fund
(C)   Capitalised
(D)   Debited to income and expenditure account

35.   Any donation received for a specific purpose is a
(A)   Revenue receipt    (B) Nominal receipt
(C)   Capital receipt        (D) None of the above

36.   Consignee’s account is a
(A)   Personal account        (B) Real account
(C)   Nominal account        (D) None of these

37.   Del Credere Commission is calculated on
(A)   Cash sales                 (B) Credit sales
(C)   Total sales                (D) None of the above

38.   Joint venture account is an example of
(A)   Personal account       (B) Real account
(C)   Nominal account        (D) None of the above

39.   Depreciation is the process of
(A)   allocation of cost                       (B) valuation of liability
(C)   creating a secret reserve         (D) none of the above

40.   Profit prior to incorporation is an example of
(A)   Revenue reserve      (B) Capital reserve
(C)   Secret reserve           (D) None of the above

41.   Rent is apportioned to different departments on the basis of
(A)   Floor area        (B) Efficiency
(C)   Profit                (D) None of the above

42.   Under debtors system, branch account is a _________ account
(A)   Personal account      (B) Real account
(C)   Nominal account       (D) None of the above

43.   The lessee’s right to recover the shortworkings is related to
(A)   first five years                      (B)  first three years
(C)   terms of the agreement       (D) last three years

44.   Under  hire  purchase  system,  the  buyer  becomes  the  owner  of goods  after  the
(A)   receipt of goods                              (B) down payment
(C)   payment of first instalment          (D) payment of last instalment

45.   Under the net worth method of single entry system, the basis for ascertaining the profit is
(A)    the difference between the capital on two dates
(B)    the difference between gross assets on two dates
(C)    the difference between liabilities on two dates
(D)    none of the above

46.    Salaries of partners are debited to
(A)   Trading account                                         (B) Profit & Loss account
(C)   Profit & Loss appropriation account        (D) None of the above

47.    The balance to the credit of retiring partners’ capital account, not paid in cash, must be transferred to
(A)   Partners’ capital account           (B) Partners’ loan account
(C)   Partners’ current account          (D) None of the above

48.    On the dissolution of partnership, profit or loss on realisation should be divided
(A)   equally among the partners            (B) on the basis of profit sharing ratio
(C)   on capital ratio                                   (D) none of the above

49.    In the case of sale to a company, the profit or loss of a firm is ascertained through
(A)   Revaluation account                                (B) Realisation account
(C)   Memorandum revaluation account       (D) None of the above

50.    Shares can be forfeited for
(A)   non-payment of call money    (B) failure to attend meetings
(C)   failure to repay bank loan       (D) none of the above