COMMON P. G.

ENTRANCE TEST – 2020

Test Booklet No. :

DEPT. OF HIGHER EDUCATION, GOVT. OF ODISHA

TEST BOOKLET

Subject Code 16 Subject COMMERCE

Time Allowed : 90 Minutes Full Marks : 70

: INSTRUCTIONS TO CANDIDATES :
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is more than one correct response (answer), you should mark (darken) the
response (answer) which you consider the best. In any case, choose ONLY ONE
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Sheet.
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marks will depend only on the number of correct responses (answers) marked by you in
the Answer Sheet. There is no negative marking.
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and after conclusion of the examination, you should hand over to the Invigilator
the Answer Sheet issued to you. You are allowed to take with you the candidate’s
copy / second page of the Answer Sheet along with the Test Booklet, after completion
of the examination, for your reference.
8. Sheets for rough work are appended in the Test Booklet at the end.

DO NOT OPEN THIS TEST BOOKLET UNTIL YOU ARE ASKED TO DO SO

XL – 42/13 ( Turn over )
XL – 42/13 (2) ( Continued )
1. As per which concept business is distinct from its owner ?
(A) Money measurement concept
(B) Business entity concept
(C) Going concern concept
(D) Matching concept

2. IFRS stands for ——————.

(A) International Financial Reporting Standard
(B) Indian Financial Reporting Standard
(C) Indian Financial Recording Standard
(D) International Financial Recording Standard

3. The expenses the benefit of which is consumed within one year is known
as ——————.
(A) Revenue expenditure
(B) Capital expenditure
(C) Differed revenue expenditure
(D) All of the above

4. A void contract is ——————.

(A) Not enforceable at all
(B) Enforceable at the option of either party
(C) Enforceable at the option of the aggrieved party
(D) Enforceable at the option of the party who is not aggrieved

5. Which is odd one out ?

(A) Specific goods
(B) Future goods
(C) Ascertained goods
(D) Unascertained goods

6. Which of the following is not an essential element of partnership ?

(A) Association of two or more persons
(B) Mutual agency
(C) Result of an agreement
(D) Separate legal entity
XL – 42/13 (3) ( Turn over )
7. The excess of called up capital over paid up capital is ——————.
(A) Calls in advance
(B) Calls in arrears
(C) Under Subscription
(D) None of the above

8. Two companies A Ltd. and B Ltd. go into liquidation to form a new company called
C Ltd. It is a case of ——————.
(A) Absorption
(B) External reconstruction
(C) Amalgamation
(D) All of the above

9. Minority of the subsidiary company is entitled to ——————.

(A) Capital profits
(B) Revenue profits
(C) Both capital and revenue profits
(D) None of the above

10. A Private company can have a maximum of —————— members.

(A) 2
(B) 50
(C) 100
(D) 200

11. Annual General Meeting (AGM) must be held by ——————.

(A) Every public company
(B) Every private company
(C) Every ‘One Person Company’
(D) Every company other than ‘One Person Company’ and ‘Small Company’

12. Which of the following is not a characteristic feature of a Private Ltd. Company ?
(A) It restricts the rights to transfer its shares
(B) It limits its membership to 200 (Except ‘One Person Company’)
(C) It has a minimum paid up share capital of Rs. 1,00,000/-
(D) It prohibits any invitation to public to subscribe its security

XL – 42/13 (4) ( Continued )

13. The process of finding and attracting capable applicant for employment is
called ——————.
(A) Recruitment
(B) Selection
(C) Placement
(D) Training

14. Which of the following is not a method of performance appraisal ?

(A) Ranking method
(B) Essay method
(C) Mentoring
(D) Self appraisal

15. “Learning by doing itself” is known as ——————.

(A) On-the-job training
(B) Off-the-job training
(C) Apprenticeship
(D) Vestibule training

16. Interest received by an individual on bank deposits is chargeable under the

head ——————.
(A) Income from salary
(B) Income from house property
(C) Capital gain
(D) Income from other sources

17. An Individual or HUF having income from a proprietary business or profession is

required to file ——————.
(A) ITR-1
(B) ITR-2
(C) ITR-3
(D) ITR-4
XL – 42/13 (5) ( Turn over )
18. Year in which income is taxable, is known as —————— and year in which income
is earned, is known as ——————.

(A) Previous year, Assessment year

(B) Assessment year, Assessment year
(C) Previous year, Previous year
(D) Assessment year, Previous year

19. Proportional allotment of cost of item to cost centers or cost units is called
as ——————.
(A) Technical, Human, Conceptual
(B) Conceptual, Human, Technical
(C) Technical, Conceptual, Human
(D) Human, Conceptual, Technical

20. Strategic planning differs from operational planning as strategic planning focuses
on ——————.
(A) Future course of action
(B) Long-term perspective
(C) Short-term perspective
(D) Single-use plans

21. Which of the following concept in motivation has been given by Vector Vroom ?
(A) Instrumentality
(B) Equity
(C) Parity
(D) Carrot and Stick

22. Which of the following method of valuing material issues is suitable in the times of
raising prices ?
(A) First in First out method
(B) Last in First out method
(C) Average cost method
(D) Standard price method
XL – 42/13 (6) ( Continued )
23. Proportional allotment of cost of item to cost centres or cost units is called
as ——————.
(A) Allocation
(B) Apportionment
(C) Absorption
(D) All of the above

24. The technique and process of ascertaining cost is known as ——————.

(A) Accounting
(B) Cost Accounting
(C) Cost Accountancy
(D) Costing

25. The compound interest on a sum of Rs. 10,000 in 2 years at the rate of 4% per
annum is ——————.
(A) 10,816
(B) 816
(C) 800
(D) None of the above

26. A square matrix in which all the elements above or below the principal diagonal are
zeros and rest are non-zeros is called as ——————.
(A) Zero matrix
(B) Scalar matrix
(C) Diagonal matrix
(D) Triangular matrix

27. An annuity which is payable for ever is called ——————.

(A) Annuity perpetual
(B) Annuity certain
(C) Annuity contingent
(D) None of the above

28. How many types of alignment are available in MS word ?

(A) 5
(B) 3
(C) 4
(D) 2
XL – 42/13 (7) ( Turn over )
29. The default font size of MS Excel is ——————.
(A) 10
(B) 11
(C) 12
(D) 13

30. The shortcut key for slide show in MS PowerPoint is ——————.

(A) f2
(B) f3
(C) f 4
(D) f 5

31. Fixing high price to earn high profit at the early stage of a product is regarded
as ——————.
(A) Penetration pricing
(B) Skimming pricing
(C) What the traffic can bear pricing
(D) Marginal cost pricing

32. Which of the following is not covered under Marco environment ?

(A) Demographic environment
(B) Economic environment
(C) Political environment
(D) Supplier

33. A product adapted to the requirement of an individual is known as ——————.

(A) Differentiated product
(B) Customised product
(C) Branded product
(D) Augmented product

34. The ultimate objective of financial management is ——————.

(A) Profit maximisation
(B) Sales maximisation
(C) Shareholder’s wealth maximisation
(D) Cost minimisation
XL – 42/13 (8) ( Continued )
35. The process of determining the present value of future cash flow is ——————.
(A) Compounding
(B) Deducting
(C) Discounting
(D) None of the above

36. The determinants of Working Capital includes ——————.

(A) Business cycle
(B) Market condition
(C) Dividend policy
(D) All of these

37. Which section of Companies Act, 2013 provides for Corporate Social Responsibility ?
(A) Section 132
(B) Section 133
(C) section 134
(D) Section 135

38. The provision for Constitution of National Financial Reporting Authority is provided
by ——————.
(A) The Chartered Accountants Act
(B) The Companies Act, 2013
(C) The Securities and Exchange Board of India Act
(D) The Banking Regulation Act

39. The kind of audit conducted between two annual audits is called as ——————.
(A) Internal audit
(B) Interim audit
(C) Final audit
(D) Continuous audit

40. The GSTIN has —————— digits.

(A) 13
(B) 14
(C) 15
(D) 16
XL – 42/13 (9) ( Turn over )
41. In case of perfectly inelastic demand, the shape of the demand curve is
——————.
(A) Vertical straight line
(B) Horizontal straight line
(C) Rectangular hyperbola
(D) None of the above

42. The rate at which factors can be substituted at the margin without altering the level of
output is called ——————.
(A) Isoquants
(B) Equal product curve
(C) Marginal rate of technical substitution
(D) None of the above

43. When inputs in a given proportion and the output increases in the same proportion. It
is a case of ——————.
(A) Increasing return to scale
(B) Constant return to scale
(C) Decreasing return to scale
(D) None of the above

44. Product differentiation is a distinguishing feature of which form of market ?

(A) Monopoly
(B) Oligopoly
(C) Perfect competition
(D) Monopolistic competition

45. Which of these is a characteristic feature of Monopoly ?

(A) Single seller
(B) Price-maker
(C) Barriers on entry and exit of firms
(D) All of the above

46. An indifference curve is ——————.

(A) A straight line sloping downward
(B) Parallel to X-axis
(C) Convex to the origin
(D) None of the above
XL – 42/13 ( 10 ) ( Continued )
47. In Oligopoly market, a kinked demand curve explains ——————.
(A) The ideal price
(B) Falling prices
(C) Price rigidity
(D) None of the above

48. Which of the following is not a characteristic feature of perfect competition ?

(A) Large number of buyer and seller
(B) Homogenous product
(C) Free entry and exit
(D) Price competition

49. Monetary policy is formulated by ——————.

(A) National Financial Reporting Authority
(B) Reserve Bank of India
(C) Securities and Exchange Board of India
(D) State Bank of India

50. Disposable income can be best defined as ——————.

(A) The actual income received by the households
(B) Income received by the households after deducting personal taxes
(C) Income received by the resource suppliers for their current contribution to
production
(D) None of the above

51. Each of the following items is a component of the expenditure approach of measuring
national income, except ——————.
(A) Personal consumption expenditure
(B) Government expenditure
(C) Net interest
(D) Imports

52. Leakages from the income-expenditure stream refer to ——————.

(A) Exports, savings and taxes
(B) Savings, taxes and imports
(C) Government spendings, exports and imports
(D) Investments, government spendings and exports

XL – 42/13 ( 11 ) ( Turn over )

53. A deep and prolonged recession is called as ——————.
(A) Inflation
(B) Disinflation
(C) Depression
(D) None of the above

54. An increase in the price of raw materials causes —————— inflation.

(A) Cost-push
(B) Profit-push
(C) Import-push
(D) Demand-pull

55. If the consumer price index increased from 124.0 in year 2009 to 130.7 in year 2010,
the economy experienced ——————.
(A) Inflation of 5.4%
(B) Deflation of 6.7%
(C) Inflation of 6.7%
(D) Deflation of 5.4%

56. A newly graduated student is looking for a job. This exemplifies ——————.
unemployment.
(A) Cyclical
(B) Frictional
(C) Structural
(D) Seasonal

57. The sum of the deviation of the items taken from —————— is zero.
(A) Arithmetic mean
(B) Median
(C) Mode
(D) Geometric mean

58. Which of the following is a positional average ?

(A) Arithmetic mean
(B) Geometric mean
(C) Harmonic mean
(D) Median

XL – 42/13 ( 12 ) ( Continued )
59. Which of the following is true about negative Skewness ?
(A) Mean > Median > Mode
(B) Mode > Median > Mean
(C) Mode < Median < Mean
(D) Mean = Median = Mode

60. When with decrease in one variable another variable decreases, it is a case
of ——————.
(A) Positive correlation
(B) Negative correlation
(C) No correlation
(D) None of the above

61. The measure of dependency of one variable on other variable is known

as ——————.
(A) Correlation
(B) Regression
(C) Dispersion
(D) Skewness

62. Circular test is satisfied by ——————.

(A) Fisher’s method
(B) Laspeyre’s method
(C) Paasche’s method
(D) Kelley’s method

63. The ratio of explained variation to total variation is called as ——————.

(A) Coefficient of correlation
(B) Coefficient of determination
(C) Coefficient of non-determination
(D) Coefficient of variation

64. When the new indices are to be spliced with the base year of the old indices, it is a
case of ——————.
(A) Forward splicing
(B) Backward splicing
(C) Deflating
(D) None of the above

XL – 42/13 ( 13 ) ( Turn over )

65. In which year Planning Commission of India was replaced by NITI Aayog ?
(A) 2014
(B) 2015
(C) 2016
(D) None of the above

66. World Trade Organisation came into force in ——————.

(A) 1947
(B) 1948
(C) 1994
(D) 1995

67. Balance of trade deals with ——————.

(A) Export and import of visible items
(B) Export and import of both visible and invisible items
(C) Export and import of invisible items
(D) Export of visible and invisible items

68. Economic globalisation includes ——————.

(A) Globalisation of markets
(B) Globalisation of investments
(C) Globalisation of production
(D) All of the above

69. The interest rate at which Reserve Bank of India provides overnight liquidity to banks
is known as ——————.
(A) Repo rate
(B) Reverse repo rate
(C) Bank rate
(D) Cash reserve ratio

70. Which of the following is not an instrument of monetary policy?

(A) Open market operation
(B) Bank rate
(C) Cash reserve ratio
(D) Taxation

XL – 42/13 ( 14 ) ( Continued )
 SPACE FOR ROUGH WORK

XL – 42/13(4,240) ( 15 ) Commerce