practice paper Junior Accountant in sports authority of india SAI

practice paper Junior Accountant in sports authority of india SAI
SAMPLE JUNIOR ACCOUNTANT SELECTION EXAM
Objective commerce questions Sports Authority Of India Recruitment
1. Consider the following statements:
1. Operational loss is a source of funds
2. Decrease in working capital is a source of funds
3. Additions to fixed assets are an application of funds
4. Fresh introduction of capital is an application of funds
Which of the above statements are applicable while preparing the funds flow statement?
(a) 1 and 2
(b) 1 and 3
(c) 2 and 3
(d) 1, 3 and 4
Ans. (d)

2. Which one of the following pairs is not correctly matched?
(a) Increase in working capital : Application of fund
(b) Increase in current liability : Source of fund
(c) Issue of shares : Source of fund
(d) Issue of bonus shares : Source of fund
Ans. (d)

3. A company’s reported current profit is Rs. 70,000 after incorporating the following:
Loss on sale of investments Rs.10, 000; Premium on redemption of debentures Rs.1 ,500; Depreciation on machinery and plant Rs. 20,000; Goodwill and preliminary expenses written of Rs. 30,000; Gain from sale of non-current assets Rs. 40,000.
The net inflow of funds from the operation would be:
(a) Rs. 91,500
(b) Rs. 80,000
(c) Rs. 70,000
(d) Rs. 59,500
Ans. (a)

4. A building standing in the books at Rs. 30,000, was sold for Rs. 45,000. The gain on the sale of building was transferred to profit and loss account thus taking the net profit to Rs; 1,70,000. The fund from operation will be:
(a) Rs. 2,15,000
(b) Rs. 1,70,000
(c) Rs. 1,55,000
(d) Rs. 2,00,000
Ans. (c)

5. For the purpose of analyzing changes in financial position, enterprises prepare:
(a) Balance Sheet and Profit & Loss A/c
(b) Cash flow statement and Funds flow statement
(c) Statement of cash from operations and Balance Sheet
(d) Statement of changes in working capital and Statement of cash from operations.
Ans. (d)

6. Match List-I (Event) with List-II (Result) and select the correct answer using the Code given below the Lists:
List-I List-II
A. Collusion between two or 1. Payments of dividends otherwise not possible
more persons
B. Falsification of accounts to increase 2. Error of principle committed
apparent profits.
C. Operation of an effective system of 3. Trial balance may agree
internal check
D. Purchase of raw materials is debited to 4. Frauds perpetrated and concealed
loose tools account
5. Possibility of errors and frauds is
considerably reduced
Codes:
A B C D
(a) 3 4 5 2
(b) 4 1 5 2
(c) 4 1 2 5
(d) 2 4 1 3
Ans. (b)

7. It is necessary that an auditor should prepare an Audit Programme : maintain an Audit Note Book: use an Internal Control Questionnaire. and a ‘Flow Chart of Accounting System’; adopt ‘Special Ticks’ for. each class of transaction checked and divide work as well as responsibility among the members of his staff for an efficient conduct of audit work. All these refer to:
(a) general principle of internal auditing
(b) general principles of internal checking
(c) basic principles of auditing
(d) general techniques of auditing
Ans. (d)

8. When an auditor tests sales transactions, one step is tracing a sample of sales invoices to debits in the accounts receivable ledger. Based upon this step he will from an opinion as to whether:
(a) each sales invoice represents a valid sale
(b) all sales have been recorded
(c) all debits in accounts receivable ledger. are supported by sales invoices
(d) recorded sales invoices are properly posted to consumer accounts
Ans. (b)

9. Consider the following actions taken by an auditor:
1. Carrying on vouching
2. Preparing the audit report
3. Checking the valuation of assets
4. Decision to qualify the report
The correct sequence of these actions is:
(a) 1, 3, 4, 2
(b) 4, 1, 3, 2
(c) 3, 4, 2, 1
(d) l, 2, 4, 3
Ans. (a)

10. Which one of the following is the main object of auditing?
(a) Ascertaining whether all cash receipts and payments of an organization have been correctly recorded and accounted for
(b) Preventing errors and frauds connected with financial transactions of an organization
(c) Verifying books of accounts and annual financial statements of an organization so as to give a report on the view presented by the said accounts and statements
(d) Recording properly all financial transactions in various books of accounts and preparing annual financial statements indicating the results of such transactions
Ans. (c)

11. The books of account of a company should be preserved for a period of not less than:
(a) 2 years
(b) 5 years
(c) 8 years
(d) 10 years
Ans. (c)

12. In evaluating internal control, the first step is to prepare an internal control questionnaire or a flow chart of the system. The subsequent steps should be to:
1. determine the extent of audit work necessary to form an opinion
2. gather enough evidence to determine as to whether the internal control system is functioning as described
3. write a letter to the management describing the weaknesses in the internal control system
4. form a final judgement on the effectiveness of the internal control system
The correct sequence of these steps would be:
(a) 1, 2, 3, 4
(b) 2, 4,1, 3
(c) 2, 1, 3, 4
(d) 2, 4, 3, 1
Ans. (d)

13. Management audit refers to:
(a) audit on behalf of the management
(b) audit of management accounting system in operation
(c) systematic appraisal of management’s objectives and procedures
(d) audit of managerially initiated financial transactions
Ans. (c)

14. If an auditor, after his appointment, becomes disqualified as specified in Section 226 (3) and (4) of the Companies Act. 1956.
(a) the appointing authority will ask him to vacate his office
(b) the Company Law Board will ask him to tender his resignation
(c) he will be deemed to have vacated his office
(a) 1, 2, 3, 4
(b) 2, 4, 1, 3
(c) 2, 1, 3, 4
(d) 2, 4, 3, 1
Ans. (d)

15. The cost auditor in a company shall be appointed by:
(a) the Board of Directors
(b) the Board of Directors with the previous approval of the Central Government
(c) the members of the company with the previous approval of the Central Government
(d) the C & AG
Ans. (a)

16. For appointing an auditor other than a retiring auditor:
(a) special resolution is required
(b) ordinary resolution and approval of C & AG are required
(c) unanimous resolution and approval of the Central Government are required
(d) special notice is required
Ans. (d)

17. Secretarial Audit is:
(a) compulsory in companies having paid-up share capital of less than Rs. 50 lakhs
(b) compulsory where the statutory audit reveals inadequacy of internal check in secretarial department
(c) optional and would help the Board of Directors and the Registrar of Cor4anies in regard to compliance aspects, mainly tinder the Companies Act, 1956
(d) compulsory in such companies as may be notified. by the Central Government.
Ans. (c)

18. Match List—I with List—II and select the correct answer using the Code given below the Lists:
List—I List-II
A. A long-term debt instrument on which interest is 1. Mutual Fund
accumulated and paid on maturity
B. A debt instrument on which rebate is available 2. Deep Discount Bond
under the Income Tax Act
C. Pooling together the money of different investors 3. Infrastructure Bond
and investing it in diversified securities
D. Buying the right but not the 4. Put option
obligation to sell a security for a specific price
Codes:
A B C D
(a) 4 1 2 3
(b) 2 3 1 4
(c) 3 1 2 4
(d) 3 1 4 2
Ans. (b)

19. The comprehensive meaning of an efficient stock market is that it is a market which:
(a) allocates resources efficiently
(b) reflects the effective use of information in the price of the shares traded therein
(c) signals the changes in the listed company’s performance
(d) safeguards the investors money
Ans. (b)

20. Global Depository Receipts (GDRs) are issued by successful corporations with a view to attracting:
(a) overseas loan funds
(b) remittances from NRIs
(c) foreign equity capital
(d) foreign direct investment
Ans. (a)

21. Stock Holding Corporation of India Ltd. is expected to achieve, in the long run, the objective of:
(a) sale of all kinds of securities in all stock exchanges
(b) purchasing all shares issued in the country
(c) paperless trading in respect of all stock market transactions
(d) holding shares of all new companies and selling them later
Ans. (d)

22. Match List—I with List—II and select the correct answer using the Code given below the List:
A. Registrar of Companies 1 . Specified Securities
B. Memorandum of Association 2. Rules and Regulations of the Company
C. Buy back of shares 3. Certificate of Incorporation
D. Articles of Association 4. Objects of the Company
5. Minimum Subscription
Codes:
A B C D
(a) 3 4 5 1
(b) 4 3 1 2
(c) 3 4 1 2
(d) 1 2 5 4
Ans. (c)

23. The criterion for deeming a private company as a public company on the basis of average annual turnover is :
(a) Rs. 25 crores
(b) Rs. 20 crores
(c) Rs. 10 crores
(d) Rs. 5 crores
Ans. (c)

24. Match List- I with List -II and select the correct answer using the Code given below the Lists:
List –I List- II
A. Ashbury Rail Carriage & Iron Co. Ltd. vs. Riche 1 .Corporate entity
B. Peek vs. Gurney 2. Objects clause
C. Salomon vs. Salomon & Co. 3. Misstatement in prospectus
D. Royal British Bank vs. Turquand 4. Indoor management
Codes:
A B C D
(a) 2 1 3 4
(b) 3 4 1 2
(c) 2 3 1 4
(d) 2 3 4 1
Ans. (c)

25. When it is not registered, a partnership firm is:
(a) deemed to be illegal association and is disallowed to carry on business
(b) allowed to carry on business subject to payment of penalty
(c) allowed to carry on business subject to certain disabilities
(d) allowed to carry on business only with the special permission of the Registrar of Firms
Ans. (c)

26. All those who are dealing with the company are expected to know that contents of the Memorandum and Articles of Association. This is called:
(a) Doctrine of indoor management
(b) Doctrine of ultra vires
(c) Constructive notice
(d) Doctrine of merger
Ans. (c)

27. Match List-I with List-II and select the correct answer using the Code given below the Lists:

List -I List-II
A. Doctrine of ultra vires 1. Articles of Association
B. Doctrine of indoor management 2. Prospectus
C. Doctrine of golden rule 3. Memorandum of Association
Code:
A B C
(a) 1 3 2
(b) 3 1 2
(c) 2 1 3
(d) 3 2 1
Ans. (b)

28. Which one of the following statements correctly explains the term Doctrine of Indoor Management?
(a) The doctrine seeks to protect the outsiders against the company
(b) Every person dealing with the company is presumed to have read and understood the contents of company’s Memorandum and Articles of Association
(c) If a person enters into a contract with the company which is contrary to the provisions of Memorandum and Articles of Association, he will not get any right under such contract
(d) It protects the company against the outsiders
Ans. (a)

29. A preliminary contract refers to a contract made on behalf of a company:
(a) before the incorporation of the company
(b) after the incorporation of the company
(c) after the company obtains the certificate to commence business
(d) after incorporation but before obtaining the certificate of commencement of business
Ans. (a)

30. Match List—I (Organization) with List—II (Basis of Membership) and select the correct answer using the Code give below the Lists:
List-I List-II
A. Cooperative society 1. Collective business
B. Joint Hindu family 2. Purchase/Transfer of share
C. Joint Stock company 3. By virtue of birth
D. Partnership firm 4. Common mutual interest
5. Mutual contract
Codes:
A B C D
(a) 1 3 2 5
(b) 5 4 1 3
(c) 4 3 2 5
(d) 4 1 2 3
Ans. (c)



31. Match List—I (Name of the Authority) with List—II (Function/Activity) and select the correct answer using the Code given below the Lists:
List-I List—II
A. Port Authority 1.Claim for damage
B. Insurance Company 2.Demurrage for goods unloaded
C. ECGC 3. Export finance guarantee
D. Advising Bank 4. Bank in the exporters country
5. Bank issuing L/C on the request of controller
Codes:
A B C D
(a) 2 1 4
(b) 4 3 5
(c) 3 4
(d) 1 3 5
Ans. (

32. Which one of the following documents attests the fact that goods of specified quantity, value and description are entering the bounds of the country?
(a) Bill of lading
(b) Consular invoice
(c) Documentary bill
(d) Bill of entry
Ans. (d)

33. A person insured his property worth Rs. 10,000 against fire for Rs. 8,000. His actual loss by fire is Rs. 5,000 and there is an average clause in the policy. His claim will be:
(a) Rs. 10,000
(b) Rs. 8,000
(c) Rs. 5,000
(d) Rs. 4,000
Ans. (d)

34. To guard against the dangers of excess payment arising out of double insurance or over insurance made by the insured, insurance companies provide in their agreement:
(a) Average clause
(b) Subrogation clause
(c) Risk clause
(d) Indemnity clause
Ans. (b)


35. Match List—I with List—II and select the correct answer using the Code given below the Lists:
List-I List-II
A. Ohio State University study 1. Production centered and Employee centered
B. University of Michigan study 2. Consideration and initiating structure
C. Likerts System Four 3. Country-club, Team manager, Impoverished, Task
Manger.
D. Fiedler’s Leadership Model 4. Exploitative authoritative, Benevolent
authoritative, Consultative, Participative
5. Leader-member relations, Task structure, Position
Power
Code:
A B C D
(a) 1 2 4 5
(b) 2 1 3 4
(c) 2 1 4 5
(d) 5 2 3 4
Ans. (c)

36. Gantt chart is essentially a pictorial presentation of:
(a) a modified procedure for productivity improvement
(b) an organization chart in the form of bar diagram
(c) a time-event network analysis
(d) position chart of the functions to be carried out by the members of a work team
Ans. (a)

37. Computerized communication system existing within an organization is called:
(a) internet
(b) extranet
(c) local Area Network
(d) intranet
Ans. (c)

38. Match List—I (Management Functions) with List—II (Terms related to each of them) and select the correct answer using the code given below the Lists:
List—I List—II
A. Planning 1. Morale
B. Controlling 2. Goal
C. Directing 3. Coding
D. Communicating 4. Deviation
5. Recruitment
Code:
A B C D
(a) 1 2 3 5
(b) 2 4 1 3
(c) 1 2 5 3
(d) 2 4 3 1
Ans. (b)

39. TQM’s major emphasis is on:
(a) product quality
(b) company profitability
(c) customer delight
(d) employee training
Ans. (a)

40. Match List—I with List—II and select the correct answer using the Code given below the Lists
Code:
List-I List-II
A. Principles of management 1. Douglas McGregor
B. Management by objectives 2. Chester Barnard
C. Human Resources Approach School 3. Henry Fayol
D. Human Relations School 4. George Elton Mayo
5. Peter Drucker
Codes:
A B C D
(a) 1 2 3 4
(b) 4 5 1 2
(c) 2 1 3 4
(d) 4 5 2 1
Ans. (b)

41. A collection of duties, tasks and responsibilities assigned to a single individual is:
(a) occupation
(b) position
(c) job
(d) grade
Ans. (c)

42. An optimizing model is designed to:
(a) get the maximum results with minimum inputs
(b) solve problems by eliminating the blocks in the process of goal achievement
(c) lead the selection of the best course of action from among available alternatives
(d) reduce the burden of organizational hierarchy
Ans. (a)

43. Match List—I with List—II and select the correct answer using the Code given below the Lists:

List—I List—II
A. Managerial Grid 1. H. Koontz
B. 3-D Approach 2. F.E. Fiedler
C. Contingency Model 3. R.R. Blake
D. Systems Approach 4. R. Likert
5. W.I. Reddin
Code:
A B C D
(a) 1 4 2 3
(b) 3 5 4 2
(c) 4 1 2 3
(d) 3 5 2 4
Ans. (d)

44. In an organization, performance appraisal is not expected to:
(a) integrate and coordinate the Endeavour of individuals
(b) monitor the efforts of individuals
(c) provide a means of correcting or commending the efforts of individuals ,
(d) calculate the living wage of the worker
Ans. (d)

45. Consider the following stages in delegation of authority
1. Creation of obligation
2. Determination of results expected
3. Assignment of duties
4. Authorization for action
The correct sequence of these stages is:
(a) 1,2, 3, 4
(b) 2, 1, 4, 3
(c) 2, 3, 4 1
(d) 1, 3, 4, 2
Ans. (c)

46. Under which one of the following types of organizational structure does a person become accountable to two or more bosses at the same time?
(a) Matrix structure
(b) Centralized structure
(c) Decentralized structure
(d) Vertical structure
Ans. (a)

47. Consider the following principles:
1. Harmony of objectives
2. Unity of command
3. Division of work
4. Responsibility
Which of these principles are not parts of direction?
(a) 1 and 2
(b) 2 and 3
(c) 3 and 4
(d) 1 and 4
Ans. (c)

48. The approach that considers an organization to be in a dynamic relationship with its environment is called:
(a) Contingency approach
(b) Scientific approach
(c) Societal approach
(d) Systems approach
Ans. (c)

49. Matrix Organization refers to a form of:
(a) organization where authority and responsibility coexist
(b) organization in which two or more basic types of Departmentation are combined
(c) mathematical arrangement of events in columns and rows
(d) organization where mathematical simulation is used
Ans. (b)

50. Consider the following steps:
1. Measurement of performance
2. Establishment of standards
3. Comparison between performance and standards
4. Correction of deviations
The correct sequence in which these steps are undertaken in the process of controlling is:
(a) 1, 2, 3, 4
(b) 2, 1, 3, 4
(c) 3, 1, 2, 4
(d) 1, 3, 2, 4
Ans. (b)