2Common Proficiency Test Model Paper 1

MODEL TEST PAPERS Common Proficiency Test (CPT) Volume - II Board of Studies The Institute of Chartered Accountants of India A © The Institute of Chartered Accountants of India © The Institute of Chartered Accountants of India All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form, or by any means, electronic, mechanical, photocopying, recording, or otherwise, without prior permission, in writing, from the publisher. Price : Rs. 250.00 Revised Edition : July 2010 Website : www.icai.org E-mail : bosnoida@icai.org ISBN No. : 978-81-8441-040-2 Published by The Publication Department on behalf of The Institute of Chartered Accountants of India, ICAI Bhawan, Post Box No. 7100, Indraprastha Marg, New Delhi - 110 002, India. Designed & Printed at Repro India Limited, 50/2, TTC MIDC Industrial Area, Mahape, Navi Mumbai - 400 710, India. July / 2010 / 40,000 Copies (Revised) B © The Institute of Chartered Accountants of India A WORD ABOUT MODEL TEST PAPERS C (cid:2) (cid:2) Common Proficiency Test (CPT) is an entry level test for Chartered Accountancy Course. It is an objective type test of 200 marks of four subjects, i.e. Fundamentals of Accounting, Mercantile Laws, General Economics and Quantitative Aptitude with an objective to test the basic knowledge in these subject areas. The Board of Studies has prepared comprehensive study materials on these subjects containing lots of objective type questions which will help the students in appearing for the Common Proficiency Test. In addition, Model Test Papers are being published to strengthen the existing question bank given in the Study Material. Model Test Papers will also serve as a useful and handy reference guide to students while preparing for Common Proficiency Test (CPT). Further, it will enhance your understanding about the pattern of questions set and the manner of answering such questions within the given time frames. The Model Test Papers have been divided in two volumes, namely Volume I containing 20 Model Test papers comprising of 4,000 objective type questions and Volume II containing 10 Model Test papers comprising of 2,000 objective type questions. These test papers will help the students to test their level of preparation in each subject. Each Model Test Paper has been divided into four sections. Section A relates to Fundamentals of Accounting carrying 60 marks and Section B Mercantile Laws carrying 40 marks. Section C and D relate to General Economies and Quantitative Aptitude carrying 50 Marks each. All Model Test Papers have been carefully designed so as to expose to students of all types of questions such as one line statement questions and fill in the blank questions, numerical based and table based questions, paragraph based and diagram based questions. The students are advised to answer each test paper under examination conditions. We are confident that these Model Test papers will enable you to enhance your speed and guide you to improve your performance in the examinations. Happy Reading and Best Wishes ! © The Institute of Chartered Accountants of India © The Institute of Chartered Accountants of India T I C A I he nstitute of hartered ccountants of ndia COMMON PROFICIENCY TEST Model Test Paper – BOS/CPT/VOLUME - 2 CONTENTS S. No. Test Paper Denomination Page No. 1. Model Test Paper – BOS/CPT-1....................................................................01 – 28 2. Model Test Paper – BOS/CPT-2....................................................................29 – 54 3. Model Test Paper – BOS/CPT-3....................................................................55 – 82 4. Model Test Paper – BOS/CPT-4..................................................................83 – 108 5. Model Test Paper – BOS/CPT-5................................................................109 – 134 6. Model Test Paper – BOS/CPT-6................................................................135 – 162 7. Model Test Paper – BOS/CPT-7................................................................163 – 190 8. Model Test Paper – BOS/CPT-8................................................................191 – 218 9. Model Test Paper – BOS/CPT-9................................................................219 – 246 10. Model Test Paper – BOS/CPT-10..............................................................247 – 273 11. Answers......................................................................................................275 – 294 12. Suggested Answers / Hints of Quantitative Aptitude................................295 – 442 E © The Institute of Chartered Accountants of India © The Institute of Chartered Accountants of India BOARD OF STUDIES THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA COMMON PROFICIENCY TEST Model Test Paper – BOS/CPT – 1 Time : 4 hours Maximum Marks : 200 The test is divided into four sections. Questions 1 to 200 have only one correct answer and carry + 1 mark for each correct answer and – 0.25 mark for each wrong answer. SECTION – A : FUNDAMENTALS OF ACCOUNTING (60 MARKS) 1. Which of the following is/are current asset? (a) Stock (b) Bill receivable (c) Prepaid Expenses (d) All of the above 2. Which of the following sets of expense are the direct expenses of business. (a) Wages, Carriage Inward, Octroi (b) Postage, Wages, Carriage Inward (c) Purchase, Wages, Coal Expenses (d) Both (a) and (c) 3. Suspense Account given in the Trial Balance will be entered in the : (a) Manufacturing A/c (b) Balance Sheet (c) Trading A/c (d) Profit and Loss A/c 4. The accounting equation is based on (a) Dual aspect (b) Business Entity (c) Going concern (d) All of the above 5. Different accounting policies can be adopted in the following area/areas (a) Valuation of inventories (b) Calculation of depreciation (c) Valuation of investments (d) All of the above Common Proficiency Test (CPT) Volume - II 1 © The Institute of Chartered Accountants of India MODEL TEST PAPER - 1 6. Journal is a book of (a) Original Entry (b) All cash transactions (c) Secondary Entry (d) All non-cash transactions 7. Normally, the following accounts are balanced (a) Real A/c and Nominal A/c (b) Personal A/c and Real A/c (c) Only Nominal A/c (d) All accounts 8. Opening and closing entries are recorded in : (a) Journal Proper (b) Purchase Book (c) Sales Book (d) Bill Receivable Book 9. Which of the following instruments is not a negotiable instrument (a) Bearer Cheque (b) Promissory Note (c) Crossed Cheque (d) Bills of Exchange 10. Bank Reconciliation statement is (a) A part of the cash book (b) A statement showing the causes of differences between the balance of cash book and passbook. (c) A part of financial statement (d) None of the above 11. The Installation expenses for a new machinery will be debited to (a) Cash A/c (b) Profit & Loss A/c (c) Machinery A/c (d) Installation expenses A/c 12. When obligation is not probable or the amount expected to be paid to settle the liability cannot be measured with sufficient reliability, it is called (a) Contingent liability (b) Provision (c) Secured Loan (d) None of the above 13. A Trial Balance contains the balances of (a) Only real A/c (b) Real A/c and Nominal A/c (c) Personal A/c (d) Both (b) and (c) 14. Error which affect only one account can be (a) Error of complete omission (b) Error of posting (c) Compensatory errors (d) None of the above 15. Valuing the stock in trade at net realisable value or cost price whichever is lower, is an example of the convention (a) Conservatism (b) Consistency (c) Dual aspect (d) All of the above 2 Common Proficiency Test (CPT) Volume - II © The Institute of Chartered Accountants of India 16. In case goods are manufactured and segregated for specified consumers the best method for valuation of inventory would be (a) FIFO (b) Simple average (c) Base stock (d) Specific identification method 17. Fixed assets are (a) Fictitious assets (b) Kept in the business for use over a long period (c) Meant for resale (d) Meant for conversion into cash as quickly as possible 18. Income earned but not received is shown in (a) Asset side of the Balance Sheet (b) Liability of the Balance Sheet (c) Profit and Loss A/c (Dr. balance) (d) None of the above 19. Overriding commission is generally calculated on (a) Cash sale only (b) Total sales exceeding invoice value/cost (c) Credit sales (d) None of the above 20. Claim of the retiring partner is payable in the following form (a) Fully in cash (b) Fully transferred to loan A/c to be paid on with some interest on it. (c) Partly in cash and partly as loan repayment with agreed interest (d) Any of the above 21. As per Section 12 of Negotiable Instruments Act, which of the following is not a foreign bill? (a) A bill drawn outside India and made payable outside India. (b) A bill drawn outside India and made payable in India. (c) A bill drawn outside India on a person resident in India. (d) A bill drawn in India on a person resident outside India and made payable outside India. 22. Kishan, the acceptor of the bill has to honour a bill on 31st March, 2010. Due to financial crisis, he is unable to pay the amount of bill of Rs. 40,000. Therefore he approaches Karan, the drawer of that bill on 20th March, 2010 for extension of the bill for further 2 months. Karan agrees to extend the credit period by drawing a new bill for Rs. 42,000 together with interest of Rs. 2,000 in cash. In this case old bill of Rs. 40,000 will be considered as (a) Dishonoured (b) Retired (c) Cancelled (d) Discounted Common Proficiency Test (CPT) Volume - II 3 © The Institute of Chartered Accountants of India MODEL TEST PAPER - 1 23. Goodwill of the firm is valued at three year’s purchase of the average profit of the last five years. The profits are as under 2010 1,60,000 (Profit) 2009 20,000 (Loss) 2008 1,20,000 (Profit) 2007 1,00,000 (Profit) 2006 80,000 (Profit) Goodwill amount will be (a) Rs. 2,76,000 (b) Rs. 2,64,000 (c) Rs. 2,60,000 (d) Rs. 2,28,000 24. Rama Ltd. forfeited 800 shares of Anil of Rs. 10 each fully called up for non-payment of final call of Rs. 2 per share and reissued to Ankit as fully paid up for Rs. 10 per share. Amount transferred to capital reserve will be (a) Rs.3,200 (b) Rs.4,600 (c) Rs.6,400 (d) Rs.8,000 25. Dabur Ltd. forfeited 400 shares of Rs. 10 each fully called up, on which the holder has paid only application money of Rs. 4 per share. Out of these 250 shares were reissued at Rs. 12 per share fully paid up. Capital reserve will be credited (a) Rs. 1,000 (b) Rs. 1,600 (c) Rs. 4,800 (d) Rs. 3,000 26. On 1 Jan. 2010 Ankur of Delhi consigned 200 cases, cost price Rs. 3,750 at proforma invoice of 25% profit on sales to his agent Mani of Manipur. Balance of Goods Sent on Consignment A/c transferred to General Trading A/c will be (a) Rs. 5,000 (b) Rs. 3,750 (c) Rs. 8,000 (d) None of the above 27. A manager gets 5% commission on net profit after charging such commission, gross profit Rs. 58,000 and expenses of indirect nature other than manager’s commission are Rs. 16,000. Commission amount will be (a) Rs. 2,900 (b) Rs. 2,000 (c) Rs. 1,500 (d) Rs. 2,200 4 Common Proficiency Test (CPT) Volume - II © The Institute of Chartered Accountants of India 28. Particulars Amount Particulars Amount Salaries 4,000 Interest on investment received 1,200 Interest on loan 5,000 Freight inward 2,000 Bad debts 1,200 Wages 1,000 Gross Profit 25,000 Net Profit will be (a) Rs. 15,300 (b) Rs. 13,000 (c) Rs. 17,200 (d) Rs. 16,000 29. (i) Balance as per cash book on 31.03.2010 Rs. 10,000 (ii) Cheques sent to bank but not entered in cash book Rs. 2,200 (iii) Cheques issued and presented on 7th April, 2010 Rs. 3,000 (iv) Bill paid by Bank not entered in the cash book Rs. 1,600 Balance on as per passbook will be (a) Rs. 9,200 (b) Rs. 13,600 (c) Rs. 10,800 (d) Rs. 6,400 30. Goods purchased Rs. 100000; sales Rs. 90000. If margin 20% on sales then closing stock will be (a) Rs. 25,000 (b) Rs. 35,000 (c) Rs. 28,000 (d) Rs. 5,600 31. The total of wages for the month of Jan, 2010 amounting Rs. 6000 was not posted. Rectifying entry for the same will be (a) Suspense A/c Dr. 6000 ; To Labour A/c 6000 (b) Wages A/c Dr. 6000 ; To Suspense A/c 6000 (c) Wages A/c Dr. 6000 ; To Cash A/c 6000 (d) None of the above 32. Anu and Anubhav are partners sharing profits in the ratio 5 : 3, they admitted Anup giving him 3/10th share of profits. if Anup acquires 1/5th share from Anu and 1/10th share from Anubhav, new profit sharing ratio will be (a) 5 : 6 : 3 (b) 18 : 24 : 38 (c) 17 : 11 : 12 (d) 4 : 3 : 2 33. Mr. Om sold goods worth Rs. 2,50,000 to Mr. Jai. Mr. Jai accepted a bill on 1.11.10, payable after 2 months. Mr. Om discounted this bill @ 18% p.a. on 15.11.10. On the due date Mr. Jai failed to discharge the bill. Later Mr. Jai become insolvent and 50 paise is recovered from Mr. Jai’s estate. How much amount of bad debts will be recorded in the books of Om. (a) Rs. 1,25,000 (b) Rs. 1,36,500 (c) Rs. 94,370 (d) Rs. 1,14,000 Common Proficiency Test (CPT) Volume - II 5 © The Institute of Chartered Accountants of India MODEL TEST PAPER - 1 34. A, B and C are the partners sharing profits in the ratio 4 : 3 : 2. C died on 30.06.2010 and profits for the accounting year 2009-10 were Rs. 72000. How much share in profits for the period 1st April, 2010 to 30th June 2010 will credited to C’s account (a) Rs. 4,000 (b) Rs. 16,000 (c) Rs. 18,000 (d) Rs. 12,000 35. A bill is drawn on 12th June for 2 months. The due date of the bill will be (a) 12th August (b) 13th August (c) 14th August (d) 15th August 36. Goods costing Rs. 2,40,000 were sent on consignment basis. Goods are invoiced at cost + 25%. The Invoice price and loading will be (a) Rs. 2,40,000 and Rs. 60,000 (b) Rs. 3,00,000 and Rs. 10,000 (c) Rs. 4,00,000 and Rs. 1,60,000 (d) Rs. 3,00,000 and Rs. 60,000 37. Which of these is not a part of double entry system? (a) Memorandum Joint Venture A/c (b) Joint Venture A/c (c) Joint Bank A/c (d) Co-venturer A/c 38. Wright Ltd. issued 40000, 8% debentures of Rs. 10 each at par which are redeemable after 8 years at a premium of 20%. The amount of loss on redemption of debentures to be written off every year will be (a) Rs. 60,000 (b) Rs. 50,000 (c) Rs. 10,000 (d) Rs. 8,000 39. Chetan Ltd. recorded the following information as on March 31, 2010 Stock (1-4-2009) Rs. 40,000 Purchases Rs. 80,000 Sales Rs. 1,00,000 It is noticed that goods worth Rs. 30,000 were destroy due to fire against this, the insurance company accepted a claim of Rs. 14,000. The company sells goods at cost plus 33.33%. The value of closing inventory, after taking into account the above transaction is (a) Rs. 75,000 (b) Rs. 15,000 (c) Rs. 25,000 (d) Rs. NIL 40. Riya and Piya are partners in a firm. During the year 2009, Riya withdraw Rs. 1000 p.m. and Piya withdraw Rs. 500 p.m. on the first day of each month for personal use. Interest on drawing is to be charged @ 10% p.a. Total interest on drawings will be (a) Rs. 975 (b) Rs. 650 (c) Rs. 900 (d) Rs. 325 6 Common Proficiency Test (CPT) Volume - II © The Institute of Chartered Accountants of India 41. Mohan drew a bill on Gopal for Rs. 100000 for 3 months, proceeds are to be shared equally. Mohan got the bill discounted at 12% p.a. and remits required proceeds to Gopal. The amount of such remittance will be (a) Rs. 24,250 (b) Rs. 48,500 (c) Rs. 50,000 (d) Rs. 97,000 42. R and S are partners sharing profits and losses equally. They admitted A for 1/3 share in the firm. The new profits sharing ratio will be (a) 3 : 2 : 1 (b) 1 : 1 : 1 (c) 2 : 2 : 1 (d) Cannot be calculated 43. Gattu and Bittu entered into a joint venture where Gattu bought goods of the value Rs. 1,00,000 and consigned them to Bittu to be sold by him on joint venture, profits being divided equally. Gattu paid Rs. 10,000 for freight and insurance. Bittu sold the goods for Rs. 1,50,000. Commission payable to Bittu Rs. 5,000. The amount to be remitted by Bittu to Gattu will be (a) Rs. 1,25,000 (b) Rs. 1,35,000 (c) Rs. 1,27,500 (d) Rs. 1,40,000 44. 10,000 litres of oil were consigned to a wholesaler the cost being Rs. 100 per litre by incurring freight Rs.8,000. 10% of loss of oil unavoidable. 8,000 litres were sold by the consignee. The remaining stock of 1000 litres will be valued at (a) Rs. 1,12,000 (b) Rs. 1,11,111 (c) Rs. 1,00,800 (d) Rs. 1,00,000. 45. Machinery costing Rs. 500000 was purchased on 1.4.2008. The installation charges amounting Rs. 20000 were incurred. The depreciation at 10% per annum on straight the method for the year ended 31st March, 2010 will be (a) Rs. 5,00,000 (b) Rs. 50,000 (c) Rs. 52,000 (d) Rs. 45,000 46. Credit balance as per passbook on 31.3.2010 is Rs. 22000. Cheques deposited but not cleared amount to Rs. 2000 and cheques issued but not presented of Rs. 8000. Balance as per cash book should be (a) Rs. 32,000 (b) Rs. 16,000 (c) Rs. 28,000 (d) Rs. 18,000 47. A Company forfeited 2,000 shares Rs. 10 each held by Mr. Mohan for non payment of allotment money of Rs. 3 per share. The called-up value per share was Rs. 8. On forfeiture, the amount debited to share capital will be (a) Rs. 6,000 (b) Rs. 20,000 (c) Rs. 1,000 (d) Rs. 16,000 Common Proficiency Test (CPT) Volume - II 7 © The Institute of Chartered Accountants of India MODEL TEST PAPER - 1 48. Bill of Rs. 5000 accepted by Rajan was endorsed by Rohit to Raj on account of final settlement of Rs. 5200. The benefit of Rs. 200 earned by Rohit was (a) Credited to discount received account by Rs. 200 (b) Debited to discount allowed account by Rs. 200 (c) Credited to rebate account by Rs. 200 (d) None of the above 49. Ankur purchased goods costing Rs. 5,000 at an invoice price, which is 50% above cost. On invoice price he enjoyed 15% trade discount and Rs. 375 cash discount on cash payment of goods in lump sum at the time of purchase. The purchase price to be recorded in the books before cash discount will be (a) Rs. 5,000 (b) Rs. 7,500 (c) Rs. 6,375 (d) Rs. 6,000 50. Kapoor Ltd. issued 7,50,000, 12% debentures of Rs. 100 each at a premium of 10% payable Rs. 40 on application and balance on allotment. Debentures are redeemable at par after 6 years. All money due on allotment was called up and received. The amount of premium will be (a) Rs. 3,00,00,000 (b) Rs. 75,00,000 (c) Rs. 2,25,00,000 (d) Rs. 7,50,00,000 51. Gopi Ltd. purchased land and building from Mohan Ltd. for a book value of Rs. 200000. The consideration was paid by issue of 12% debentures of Rs. 100 each at a discount of 20%. The debenture account is credited with (a) Rs. 2,00,000 (b) Rs. 2,60,000 (c) Rs. 2,50,000 (d) Rs. 1,40,000 52. A company offers to the public 20000 shares for subscription. The company receives application for 24000 shares. If the shares are allotted on pro-rata basis the application for 24,000 shares are to be allotted as (a) 5 Shares for every 6 shares applied (b) 4 Shares for every 5 shares applied (c) 6 Shares for every 7 shares applied (d) None of the above 53. Arjun and Bheem are partners in the firm sharing profits and losses in the ratio 1 : 1. They have invested capital of Rs. 80,000 and Rs. 50,000 respectively. As per partnership deed, they are entitled to interest on capital @ 2.5% p.a. before sharing the profits. During the year firm earned a profit of Rs. 5000 before allowing interest. The net profit will be apportioned as (a) Rs. 900 to Arjun, Rs. 900 to Bheem (b) Rs. 875 to Arjun, Rs. 875 to Bheem (c) Rs. 785 to Arjun, Rs. 785 to Bheem (d) Rs. 965 to Arjun, Rs. 965 to Bheem 8 Common Proficiency Test (CPT) Volume - II © The Institute of Chartered Accountants of India 54. Following figures have been taken from the trial balance of a trader Gross Purchase Rs. 60,000 Gross Sales Rs. 1,00,000 Purchase Returns Rs. 5,000 Sales Returns Rs. 7,000 Duty Drawback Rs. 6,000 Sales Tax Rs. 12,000 The amount of G.P. will be (a) Rs. 32,000 (b) Rs. 38,000 (c) Rs. 40,000 (d) Rs. 26,000 55. A debit note for Rs. 500 issued by Mr. Marshall to Mr. Fisher for goods returned by Mr. Marshall is to be accounted for (a) Bill receivable Book (b) Purchases Return Book (c) Purchase Book (d) Journal Proper 56. A purchase of goods from Rahul amounting to Rs. 300 has been wrongly entered through sales book, what will be the rectifying entry. (a) Purchase A/c Dr. 300 To Sales A/c 300 (b) Sales A/c Dr. 300 To purchase A/c 300 (c) Rahul A/c Dr. 600 To purchase A/c 300 To sales A/c 300 (d) Purchases A/c Dr. 300 Sales A/c Dr. 300 To Rahul 600 57. Original Cost = Rs. 63000. Salvage value = 3000. Depreciation for 2nd year @ units of production method, If units produced in 2nd year was 5000 and total estimated production 60000 units. (a) Rs. 5,000 (b) Rs. 6,000 (c) Rs. 5,250 (d) Rs. 5400 58. When drawing up a Bank Reconciliation Statement If you start with a debit balance as per the Bank statement, the unpresented cheques should be (a) Not required to be adjusted (b) Subtracted (c) Added (d) None of the above 59. Purchase of Building from payment through Bank Account will (a) Decrease in total liabilities (b) Increase in total assets (c) Decrease in total assets (d) Not affect total assets. 60. Economic life of an enterprise is split into periodic interval as per _______ concept (a) Materiality (b) Periodicity (c) Accrual (d) Conservation Common Proficiency Test (CPT) Volume - II 9 © The Institute of Chartered Accountants of India MODEL TEST PAPER - 1 SECTION – B : MERCANTILE LAWS (40 MARKS) 61. The Indian Contract Act, 1872 is extended to (a) The whole of India (b) The whole of British India (c) The whole of India excluding J & K (d) All the States and Union territories of India. 62. Which of the following is correct? (a) a promise is a contract (b) a set of promises is a contract (c) a proposal is a contract (d) agreements enforceable by law is a contract 63. A person making a proposal is called. (a) Promisor (b) Vendor (c) Contractor (d) Promisee 64. Void agreements are (a) Forbidden under law (b) Not forbidden under law (c) Punishable (d) Legal agreements 65. Where two parties make identical offers to each other, in ignorance of each other’s offer, the offers are known as (a) Cross-offers (b) An agreements (c) Contracts (d) Promises 66. In the case of specific offer, it can be accepted only (a) by the person to whom it is made (b) by third party (c) by the stranger (d) by legal heir 67. A voidable agreement is enforceable by (a) None of the parties (b) Only one of the parties (c) All the parties to the contract (d) One or more but not by the other or others 68. An illegal agreement (a) is void ab initio (b) becomes void (c) void ab initio as well as punishable (d) voidable 10 Common Proficiency Test (CPT) Volume - II © The Institute of Chartered Accountants of India 69. A minor is a person who has not completed (a) 20 years of age (b) 21 years of age (c) 18 years of age (d) 19 years of age 70. In which of the following cases, there is no communication of acceptance? (a) Fall of hammer in auction sale (b) Keeping agreement in a drawer (c) Cashing of a cheque (d) All of the above. 71. Where a certain amount is deposited as securing for performance of a contract, it is called (a) Earnest money (b) Cash money (c) Hard money (d) All of these 72. Quantum meirut means (a) as much as is merited (b) as much as is credited (c) as much as is performed (d) None of these 73. When the acceptance is by a letter, a contract is deemed to be made at the place (a) Where the letter of acceptance is transmitted (b) Where the letter of acceptance is received (c) Where the proposer resides (d) Where the acceptor resides 74. A gratuitous or bare promise, devoid of consideration, is called- (a) Res extincta (b) Nudum Pactum (c) Uberrima fides (d) Contractu 75. A contract made by mistake of foreign law, is (a) Void (b) Valid (c) Voidable (d) Illegal 76. A partnership at will is one (a) Duration not fixed (b) Duration fixed (c) Dissolved at any time (d) Can be dissolved only at the happening of an event. 77. The unpaid seller has the right against the goods (a) Rights of lien (b) Right of stoppage in transit (c) Right of resale (d) all of these 78. Contract in which only one party has to perform his promise is known as (a) Executed contract (b) Executory contract (c) Unilateral contract (d) Bilateral contract Common Proficiency Test (CPT) Volume - II 11 © The Institute of Chartered Accountants of India MODEL TEST PAPER - 1 79. When the performance of a contract becomes subsequently impossible or unlawful, the contract becomes (a) Illegal (b) Void (c) Invalid (d) Voidable 80. Contract for the sale of future goods is _______. (a) Sale (b) Agreement to sell (c) Void (d) Auction sale 81. The Sale of Goods Act, 1930 deals with the _______. (a) Movable goods only (b) Immovable goods only (c) Both immovable and movable goods (d) Tangible goods only 82. A party agrees to pay five lakhs to another party if first party brings to earth a star from sky. This is known as _______. (a) Contingent contract (b) Quasi Contract (c) Implied contract (d) Wagering contract 83. _______ does not affect the free consent of the parties. (a) Fraud (b) Coercion (c) incompetence (d) Undue influence 84. Consideration may be _______. (a) Past (b) Present (c) Future (d) All of these 85. When the consent of a party is obtained by fraud, the contract is____________. (a) Valid (b) Voidable (c) Illegal (d) Void 86. Registration of the partnership firm is done with _______. (a) Registrar of firms (b) Registrar of co-operative society (c) Registrar of companies (d) All of these 87. An agreement to share earnings of a smuggling business is _______. (a) Valid (b) Void (c) Voidable (d) Contingent 12 Common Proficiency Test (CPT) Volume - II © The Institute of Chartered Accountants of India 88. There can be a stranger to a _______. (a) Contract (b) Consideration (c) Agreement (d) Promise 89. The authority of a partner to bind the firm is known as _________. (a) Implied authority (b) Express authority (c) Contractual authority (d) None of the above 90. An actionable claim can always be _______. (a) Assigned (b) Adjusted (c) Noted (d) All of these 91. Reciprocal promise means _______. (a) A promise in return for a promise (b) A promise in return for a agreement (c) A promise in return for a contract (d) Accepted promise 92. When one of the parties to the contract has performed his part of the promise, it is known as _______. (a) Consideration (b) Past consideration (c) Future consideration (d) Executory consideration 93. An agreement made without consideration is _______. (a) Valid (b) Void (c) Voidable (d) Illegal 94. Acceptance in ignorance of the offer is _______. (a) Valid (b) Invalid (c) Void (d) Voidable 95. An agreement to commit a crime is _______. (a) Valid (b) Void (c) Voidable (d) Unenforceable 96. Communication of proposal is complete when it comes to the knowledge of _______. (a) The proposer (b) The person to whom it is made (c) The Court (d) (a) or (b) Common Proficiency Test (CPT) Volume - II 13 © The Institute of Chartered Accountants of India MODEL TEST PAPER - 1 97. An offer made to a specific person is known as_________. (a) Special offer (b) Separate offer (c) Specific offer (d) Standing offer 98. Advertising agent invites a tender. It is known as _______. (a) An offer (b) A counter offer (c) An agreement (d) An invitation to offer 99. A buys an article thinking it is worth Rs. 10,000 while it is actually worth Rs. 5,000 only. Decide what will be the remedy to A? (a) The agreement can be avoided on the ground of mistake (b) The agreement cannot be avoid on the ground of mistake (c) A can sue for return taking back Rs. 5,000 (d) A can sue for recovery of Rs. 2,000 only 100. A agrees to buy from ‘B’ a certain horse. It turns out that the horse was dead at the time of the bargain, though neither party was aware of the fact. Decide. (a) The agreement is void (b) The agreement is valid (c) A can sue for purchasing new horse in place of dead horse (d) None of these SECTION – C : GENERAL ECONOMICS (50 MARKS) 101. Monetary Policy refers to: (a) Public Revenue and Public Expenditure Policy (b) Policy to control money supply (c) M1 and M2 (d) Policy linked to banking 102. HYVP was restricted to the following crops: (a) Wheat, Rice, Bajra, Jawar and Maize (b) Wheat, Sugar, Bajra, Jawar and Maize (c) Wheat, Milk, Bajra, Jawar and Maize (d) Wheat, Banana, Bajra, Jawar and Maize 103. The Full form of ICICI is : (a) Investment Credit and Industrial Corporation of India (b) Indian Credit and Investment Corporation of India (c) Industrial Credit and Investment Corporation of India (d) International Credit and Investment Corporation of India 14 Common Proficiency Test (CPT) Volume - II © The Institute of Chartered Accountants of India 104. In the theory of demographic transition in the first stage : (a) Both birth rate and death rate are high (b) Both birth rate and death rate are low (c) Birth rate is high and death rate is low (d) Birth rate is low and death rate is high 105. Narrow money refers (as per latest RBI Working Group): (a) Currency + Demand Deposits + Other Deposits with RBI (b) Currency + Demand Deposits + Post office saving deposits (c) Currency + Demand Deposits + Money at call (d) None of the above 106. In the case of a straight line demand curve meeting the two axes, the price elasticity of demand at y-axis of the line would be equal to (a) 1 (b) infinity (c) 3 (d) 1.25 107. A firm under perfect competition will be making minimum losses (in the short run) at a point where: (a) MC > MR (b) MR > MC (c) MC = MR (d) AC = AR 108. In order to control Inflation in India RBI may: (a) Increase CRR (b) Decrease CRR (c) Increase buying of Government Securities (d) None of the above 109. When the consumer is in equilibrium his price line is _____________ to indifference curve (a) Parallel (b) At right angle (c) Diagonally opposite (d) Tangent 110. Which of the following is not the feature of Perfect Competition? (a) Large number of buyers and sellers (b) Small number of buyers and sellers (c) Free Entry and Exit (d) Goods is Homogeneous Common Proficiency Test (CPT) Volume - II 15 © The Institute of Chartered Accountants of India MODEL TEST PAPER - 1 111. In the long run under which competition a firm may earn super normal profits? (a) Monopolistic competition (b) Perfect competition (c) Oligopoly (d) Monopoly 112. Nationalization means: (a) Selling of government stake to private sector (b) Selling of government companies to private sector (c) Government purchasing 26% shares in private companies (d) Taking of full control and management from Private Sector by the government 113. In June 2010, Bank rate was ——— percent (a) 6 (b) 7 (c) 5 (d) 8 114. In June 2010, the SLR was —— percent (a) 5 (b) 15 (c) 25 (d) 20 115. Economics is a Science which deals with wealth was referred by : (a) Alfred Marshal (b) J. B. Say (c) Adam Smith (d) A.C. Pigou 116. Average fixed cost can not be: (a) Less than one (b) One (c) Zero (d) Greater than one 117. The number of Member Countries of WTO in 2009 is : (a) 184 (b) 153 (c) 150 (d) 177 118. If as a result of 10% increase in price, the quantity supplied does not change at all, it implies that the elasticity of Supply is : (a) Zero (b) Infinite (c) Equal to one (d) Greater than Zero but less than one 119. The Law of variable proportions examines the Production function with: (a) One factor variable and only one factor fixed (b) One factor variable keeping quantities of other factors fixed (c) All factors variable (d) None of the above 16 Common Proficiency Test (CPT) Volume - II © The Institute of Chartered Accountants of India 120. In Law of negative returns (Third stage of Law of variable proportions): (a) Total Product declines, MP is positive (b) Total Product declines, MP is Zero (c) Total Product declines, MP is negative (d) Total Product in constant, MP is constant 121. If GDP is 20% higher than last year and the rate of inflation is 9%, then production in the economy has grown by ———. (a) 8% (b) 11% (c) 20% (d) 9% 122. Indifference Curve analysis is based on (a) Ordinal utility (b) Cardinal utility (c) Marginal utility (d) None of the above 123. The demand curve is also known as: (a) Marginal Revenue curve (b) Marginal utility curve (c) Average Revenue (d) Average utility curve 124. Supply of a good and its price have (a) Negative relationship (b) Inverse relationship (c) No relationship (d) Positive relationship 125. MC curve cuts AVC Curve (a) At its falling point (b) At its minimum point (c) At its rising point (d) At different points 126. TRYSEM stands for (a) Training Regional Youth for Self Employment (b) Training Raipur Youth for Self Employment (c) Training Rural Youth for Self Employment (d) None of the above 127. PNB, SBI, Canara Bank are examples of: (a) Semi Private banks (b) Public Sector banks (c) Private Sector banks (d) Semi Public Sector banks 128. Margin requirement for commercial bank refers to (a) Profit margins (b) CRR and SLR (c) CRR (d) Difference between amount of Security to be given by the borrowers to the bank and the amount of Loan. Common Proficiency Test (CPT) Volume - II 17 © The Institute of Chartered Accountants of India MODEL TEST PAPER - 1 129. Accounting profit is equal to: (a) Total Revenue – Total variable cost (b) Total Revenue – Total direct cost (c) Total Revenue – Total cost (d) Total Revenue – Total Explicit cost and Total Implicit Cost. 130. RBI has ——— . (a) Very few branches (b) One branch in each state of India (c) No branches (d) None of the above 131. If firm’s average cost curve is falling then marginal curve must be : (a) Falling (b) Rising (c) below average cost curve (d) None of the above 132. Fiscal Policy in India is given by: (a) RBI (b) Ministry of Finance (c) Prime Minister (d) None of the above 133. Which is not the aim of National Policy on Education? (a) Universal access and enrolment (b) Universal retention of children upto 14 years of age (c) A Substantial improvement in the quality of education (d) None of the above 134. The goal of National Policy on Education is to make an expenditure of ——— of GDP. (a) 5% (b) 7% (c) 6% (d) 8% 135. Gross Enrolment Ratio shows the proportion of children in elementary school in the age group of: (a) 6-10 (b) 6-14 (c) 6-8 (d) 4-10 136. VSAT stands far (a) Very Small Aperture Terminals (b) Various Small Aperture Terminals (c) Very Small Application Terminals (d) Valuable Small Aperture Terminals 137. On an average, one post office serves: (a) 18 Sq. Km area (b) 21.12 Sq. Km area (c) 31 Sq. Km area (d) 51 Sq. Km area 18 Common Proficiency Test (CPT) Volume - II © The Institute of Chartered Accountants of India 138. Airport Authority of India manages ——— airports (a) 82 (b) 93 (c) 92 (d) 103 139. India has ——— % of the world area (a) 1.2 (b) 2.4 (c) 16.7 (d) 7 140. What is the approximate life expectancy of the people living in India? (a) 58 (b) 60 (c) 65 (d) 50 141. Which of the following states has the highest percentage of literacy? (a) Delhi (b) Kerela (c) Karnataka (d) Tamil Nadu 142. FDI Prohibited in all of the following except: (a) Atomic energy (b) Lottery business (c) Banking operations (d) Gambling and betting 143. Every ——— poor person in the world is an Indian (a) Sixth (b) Third (c) Fifth (d) Seventh 144. Density of Population refer to (a) Number of person per square kilometer (b) Number of person per square kilometer of land excluding forest and river (c) Number of person per square kilometer of land excluding rivers and seas in the country (d) Number of persons per km of land 145. India’s present density of Population is (a) 344 persons per square kilometer (b) 324 persons per square kilometer (c) 390 persons per square kilometer (d) 440 persons per square kilometer 146. Gini Coefficient is often used to measure poverty in: (a) Absolute Terms (b) Relative Terms (c) Both (a) and (b) (d) None of the above Common Proficiency Test (CPT) Volume - II 19 © The Institute of Chartered Accountants of India MODEL TEST PAPER - 1 147. Presently how many villages are not electrified? (a) 25% (b) 5% (c) 10% (d) 19% 148. The ———— is defined as the number of persons in the labor force per 1000 persons (a) WPR (b) LFPR (c) CWS (d) CDS 149. An expansion in the supply of a good is caused by a: (a) Rise in the price of good (b) Fall in the prices of other goods. (c) Fall in the prices of factors of production (d) All of the above 150. Which of the following has the lowest price elasticity of supply? (a) Luxury (b) Necessities (c) Salt (d) Perishable goods SECTION – D : QUANTITATIVE APTITUDE (50 MARKS) ο ⎛ 1 ⎞ 1 4 + + 151. The value of ⎜ ⎟ (64)2 (–32)5 ⎝64⎠ 1 3 (a) 17 (b) 17 8 8 7 (c) 11 (d) None of these 8 1 1 + 152. If a2 + b2 = 45 & ab = 18, then is a b 1 2 (a) (b) 3 3 1 (c) (d) None of these 2 20 Common Proficiency Test (CPT) Volume - II © The Institute of Chartered Accountants of India 1 –1 –1 a2 +a2 1–a2 153. The value of + 1–a 1+ a a a –1 (a) (b) a –1 2 2 2 (c) (d) a –1 1–a 154. If log2.log625 =log16.log10, then x e x 10 e (a) 7 (b) 5 (c) 8 (d) None of these 2 2 155. The highest score in an innings was of the total score and the next highest was of the 9 9 remainder. These score differed by 8 runs. What was the total score in the innings? (a) 162 (b) 152 (c) 142 (d) 1132 156. The third proportional to 15 and 20 is 80 (a) (b) 80 3 80 (c) (d) None of these 7 157. The mean proportional between 9 and 25 is – (a) 16 (b) 10 (c) 15 (d) None of these 158. The ratio of the number of boys and girls in a school is 2:5. If there are 280 students in the school, find the number of girls in the school. (a) 200 (b) 250 (c) 150 (d) None of these 159. A bag contains an equal number of one rupee, 50 paise and 25 paise coins respectively. If the total value is Rs. 35, how many coins of each type are there. (a) 30 (b) 20 (c) 25 (d) None of these Common Proficiency Test (CPT) Volume - II 21 © The Institute of Chartered Accountants of India MODEL TEST PAPER - 1 160. One-third of a number is greater than one-fourth of its successor by 1. Find the number. (a) 51 (b) 21 (c) 15 (d) None of these ⎛ 1 ⎞ 161. The value of log ⎜ ⎟ is 3⎝81⎠ (a) 4 (b) –4 (c) 2 (d) –2 ⎛ 1 ⎞ 162. The value of log ⎜ ⎟ is 2 2 ⎝256⎠ 16 (a) (b) –4 3 –16 (c) 3 (d) 3 1 163. If log 3 2 = ; then value of x is x 15 (a) 8 (b) 32 (c) 16 (d) 64 164. If log [log (log x)] = 0; then value of x is 4 3 2 (a) 16 (b) 32 (c) 4 (d) None of these 165. The value of log (0.00001) = –5, then x is x (a) 10 (b) 102 (c) 100 (d) None of these 166. 1230 baskets of mangoes were loaded in three trucks. When unloaded, it was found that 5, 10 and 15 baskets were rotten in the trucks respectively, but the remaining baskets were in the ratio of 3:4:5. How many baskets were loaded initially in each truck? (a) 575 (b) 515 (c) 565 (d) None of these 167. Find the ratio x : y : z from 2x + 3y – 5z = 0 and –3x + 2y + 7z = 0 (a) 10:12:13 (b) 30:2:12 (c) 31:1:13 (d) None of these 22 Common Proficiency Test (CPT) Volume - II © The Institute of Chartered Accountants of India 168. The value of log n A a 1 (a) logA (b) a log A n a 1/n ⎛1⎞ (c) A log ⎜ ⎟ (d) None of these a⎝n⎠ log 4 10 169. The value of log 8 10 1 4 (a) (b) 3 3 2 (c) (d) None of these 3 170. If log 12.45 = 1.0952 and log 3.79 = 0.5786, Find the value of log 124.5 + log 379 10 10 10 10 (a) 5.6738 (b) 4.6738 (c) 6.6738 (d) None of these 171. Find the number of even numbers greater than 100 that can be formed with the digits 0, 1, 2, 3? (a) 10 (b) 15 (c) 20 (d) None of these 172. How many numbers between 100 and 1000 can be formed with the digits. 2, 3, 4, 0, 8, 9? (a) 100 (b) 105 (c) 200 (d) None of these 173. In how many ways can the letters of the word “ALGEBRA” be arranged without changing the relative order of the vowels? (a) 82 (b) 70 (c) 72 (d) None of these 174. How many words can be formed with the letters of the word “UNIVERSITY”, the vowels always remaining together? (a) 60480 (b) 60482 (c) 60000 (d) None of these Common Proficiency Test (CPT) Volume - II 23 © The Institute of Chartered Accountants of India MODEL TEST PAPER - 1 175. In how many ways can the letters of the word “DIRECTOR” be arranged so that the three vowels are never together? (a) 180 (b) 18,000 (c) 18,002 (d) None of these 176. If f(x) = 1; if x < 3 , f(x) = ax + b; if 3 < x < 3 , f(x) = 7; if 5 < x. Determine the values of a & b so that f(x) is continuous. (a) a=3 & b =– 8 (b) a = 3 & b=8 (c) a–3 & b = 8 (d) None of these ⎡ x 9 ⎤ 177. Evaluate lim⎢ – ⎥ x→3 ⎣x-3 x2 –3x⎦ (a) 1 (b) 0 (c) 2 (d) None of these f(2)–f(x) 178. If f(x) = 4 –x2; then lim is x→2 x−2 2 2 – (a) (b) 5 5 (c) 2 5 (d) 4 dy 1–x 179. Evaluate ; if y = dx 1+x 1 –1 (a) (1+x) 1–x2) (b) (1+x) 1–x2) 1 (c) (1+x2) 1–x2) (d) None of these 10x +logx dy 180. If y = ; then find . x dx 10x(2×log10–1)+2–logx 10x(2×log10+1)+2–logx (a) (b) 2x x 2x x 10x(2–1)+2–logx (c) (d) None of these 2x x 24 Common Proficiency Test (CPT) Volume - II © The Institute of Chartered Accountants of India 181. Evaluate ∫ 2 x x2dx 2xx2 x2x+1 2x+1 2xx3 x22x+1 2x+1 – + +c – + +c (a) (b) 2 (log2)2 (log2)3 3 (log2)2 (log3)2 2x.x2 x3.2x 2x+1 – − +c (c) (d) None of these 3 3 (log2)3 log x ∫ 182. Evaluate dx 3x 1 1 ( ) 2 (a) log x +c (b) log x +c 3 3x (c) 1⎡ ⎣ log ( x ) ⎤ ⎦ 2 +c (d) None of these 3 log x ∫ 183. Evaluate: dx x2 1 –1 (a) (1+logx)+c (b) logex+c x x 1 ⎛x⎞ (c) log⎜ ⎟ +c (d) None of these x ⎝ e⎠ ex(x2 +1) ∫ dx 184. Evaluate: ( )2 x+1 ⎛x–1⎞ ⎛x+1⎞ (a) ex⎜ ⎟ +c (b) ex⎜ ⎟ +c ⎝x+1⎠ ⎝x–1⎠ ⎛x–1⎞ (c) –ex⎜ ⎟ +c (d) None of these ⎝x+1⎠ Common Proficiency Test (CPT) Volume - II 25 © The Institute of Chartered Accountants of India MODEL TEST PAPER - 1 xex ∫ dx 185. Evaluate ( )2 1+x ex xex (a) +c (b) +c 1+x 1+x ex +c (c) ( 1+x )2 (d) None of these 1 dy 186. If y = x+ ; then 2x is x dx 1 1 x – x + (a) (b) x x 1 (c) x– (d) None of these x x2 +1+ x2 –1 dy 187. if y = , then is x2 +1– x2 –1 dx 2x3 2x3 2x– 2x+ (a) (b) x4 –1 x4 –1 x3 x– (c) (d) None of these x4 –1 ⎡ 3⎤ ⎢ ⎛x–2⎞ 4⎥ dy 188. If y = log ex⎜ ⎟ then is ⎢ ⎝x+2⎠ ⎥ dx ⎣ ⎦ x2 –1 x2 +1 (a) (b) x2 –4 x2 –4 x2 –1 (c) (d) None of these x2 +4 26 Common Proficiency Test (CPT) Volume - II © The Institute of Chartered Accountants of India dy 189. If y = xx, then is dx (a) xx (2 + log x) (b) xx log (ex) ⎛ e ⎞ (c) xx log⎜ ⎟ (d) None of these ⎝x⎠ dy 2 190. If y = xe –x then dx is –x 2 2 ⎡ 1–2x2logx ⎤ –x 2 2 ⎡ 1–3x3logx2⎤ xe e–x ⎢ ⎥ xe e–x ⎢ ⎥ (a) (b) ⎣ x ⎦ ⎣ x2 ⎦ 2 ⎡ 1–3x2logx ⎤ e–x ⎢ ⎥ (c) (d) None of these ⎣ x ⎦ 191. If the sum of first n terms of an A.P.’s Zero, then the sum of next m terms, where a is the first term of the A.P. is –am –am(m+n) (a) (m+n)(n–1) (b) n–1 am(m+n) (c) (d) None of these n–1 192. First, Second and last terms of a finite A.P. are m, n and 2m respectively, then sum of the series is 3mn 3mn (a) (b) 2(n–m) n−m 3mn (c) 2(n+m) (d) None of these 193. The first and fifth term of an A.P. of 40 terms are –29 & –15 respectively. Find the sum of all positive terms of this A.P. (a) 1605 (b) 1705 (c) 1805 (d) None of these Common Proficiency Test (CPT) Volume - II 27 © The Institute of Chartered Accountants of India MODEL TEST PAPER - 1 1 1 194. If mth term of an A.P. is and nth term is , then sum of mn terms is – n m 1 (a) mn+1 (b) (mn–1) 2 1 (c) (mn+1) (d) None of these 2 195. The sum of n terms of two A.P.s are in the ratio (7n+1) : (3n+2); find the sum of their 13th terms (a) 6:7 (b) 16:7 (c) 7:16 (d) None of these 196. If one Arithmetic Mean A and G.M.s G and G be inserted between any two numbers then 1 2 G3 +G3 is equal to – 1 2 (a) 2G G (b) 2A G G 1 2 1 2 (c) 2AG (d) None of these 1 am+1 +bm+1 197. If is the G.M. between the numbers a and b, then the value of m is am +bm 1 1 (a) – (b) 2 2 (c) 1 (d) 0 198. If the pth, qth, rth and sth terms of an A.P. are in G.P.; then p–q, q–r and r–s are in (a) A.P. (b) G.P. (c) Cannot determine (d) None of these 199. The value of 1.4 is 13 10 (a) (b) 9 9 4 (c) (d) None of these 9 200. The value of 0.356 is 356 353 (a) (b) 999 999 353 (c) (d) None of these 990 ❖❖❖ 28 Common Proficiency Test (CPT) Volume - II © The Institute of Chartered Accountants of India BOARD OF STUDIES THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA COMMON PROFICIENCY TEST Model Test Paper – BOS/CPT – 2 Time : 4 hours Maximum Marks : 200 The test is divided into four sections. Questions 1 to 200 have only one correct answer and carry + 1 mark for each correct answer and – 0.25 mark for each wrong answer. SECTION – A : FUNDAMENTALS OF ACCOUNTING (60 MARKS) 1. Present liability of uncertain amount, which can be measured reliably by using a substantial degree of estimation is termed as (a) Contingent liability (b) Liability (c) Provision (d) Reserve 2. Which one of the following statement is FALSE : (a) There are many views about accounting principles (b) Accounting is based on accounting equation (c) Accounting is commonly treated as language of business (d) None of the above 3. For charging depreciation, on which of the following assets, the depletion method is adopted? (a) Wasting Assets (Mines) (b) Land (c) Goodwill (d) All of the above 4. Closing stock appearing in the trial balance is shown in (a) The Profit and Loss Account (b) The Balance Sheet only (c) The Trading Account only (d) Both (b) and (c) Common Proficiency Test (CPT) Volume - II 29 © The Institute of Chartered Accountants of India MODEL TEST PAPER - 2 5. When the incoming partner brings his share of goodwill in cash, the amount of brought-in share of goodwill is credited to (a) Cash Account (b) Capital Account (c) Premium for Goodwill (d) Old Partner’s Capital Account 6. For shares issued to promoters for their services, account debited is (a) Goodwill Account (b) Promotion Expenses Account (c) Promoters Account (d) Directors Account 7. According to Section 78 of the Companies Act, the amount in the securities premium A/c can be used for the purpose of (a) Issue of fully paid bonus shares (b) Writing off preliminary expenses (c) Both (a) & (b) (d) None of the above 8. Closing stock is valued at (a) Cost price (b) Cost price or Net realisable value whichever is lower (c) Cost price or Net realisable value whichever is higher (d) Net realisable value 9. When the goods are returned to a supplier (a) A Debit note is sent to him (b) An Account sale is sent to him (c) A receipt is sent to him (d) Either (b) or (c) 10. Bills receivable endorsed are debited to (a) Bills Payable A/c (b) Debtor’s A/c (c) Endorsee A/c (d) Bills Receivable A/c 11. Capital Accounts of the co-venturers are of the nature of (a) Nominal A/c (b) Personal A/c (c) Real A/c (d) None of the above. 12. Del-credere Commission is allowed to cover (a) All types losses (b) Abnormal loss (c) Normal loss (d) None of the above 13. Entrance fee of Rs. 50,000 received by Shyam Cricket club is a (a) Capital Expenditure (b) Revenue Receipts (c) Capital Receipt (d) Revenue Expenditures 30 Common Proficiency Test (CPT) Volume - II © The Institute of Chartered Accountants of India 14. Interest on Capital is ............... for the business. (a) Revenue (b) Expense (c) Gain (d) None of the above 15. An amount of Rs. 5,000 received from Pankaj credited to Pooja would affect (a) Pooja’s A/c (b) Pankaj’s A/c (c) Pankaj’s A/c and Pooja’s A/c (d) Cash A/c and Pooja’s A/c 16. Accounts payable has............... balance (a) Credit (b) Unfavourable (c) Debit (d) Favourable 17. The concept that “an accountant shouldn’t anticipate profit, but must provide for all losses” is known as (a) The conservatism concept (b) The consistency concept (c) The materiality concept (d) The reduction concept 18. Patents Accounts are (a) Secured Loan Account (b) Nominal Account (c) Real Account (d) Debtors Account 19. If a bill is drawn on 24 November for 60 days, it will mature on (a) 26 January (b) 25 January (c) 24 January (d) 21 January 20. Sales Tax payable is a (a) Current Assets (b) Personal A/c (c) Nominal A/c (d) Real A/c 21. Jai Co. purchased goods for Rs. 30,00,000 and sold 70% of such goods during the accounting year ended 31st March, 2010. The market value of the remaining goods was Rs. 7,00,000. Company valued closing stock at Rs. 7,00,000 and not at Rs. 900000 due to (a) Periodicity concept (b) Cost concept (c) Conservatism concept (d) None of the above 22. Tata Communication invited applications for 50,000 equity shares of Rs. 10 each and received 65,000 applications along with application money of Rs. 5 per share. Which of the following is correct (a) Refund the excess application (b) Make pro-rate allotment to all applicants, and refund the excess application money (c) Make pro-rate allotment to all applicants and adjust the excess money received towards call money (d) All of the above Common Proficiency Test (CPT) Volume - II 31 © The Institute of Chartered Accountants of India MODEL TEST PAPER - 2 23. Goods costing Rs. 2,00,000 sent out to consignee at cost + 25%. Invoice price of the goods will be (a) 2,40,000 (b) 2,30,000 (c) 2,10,000 (d) 2,50,000 24. A company wishes to earn a 25% profit margin on selling price. Which of the following in the profit mark up on cost, which will achieve the required profit margin (a) 33.33% (b) 20% (c) 30% (d) None of these 25. Ram of Raipur sends out goods costing Rs. 1,00,000 to Amar of Alwar. 3/5th of the goods were sold by consignee for Rs. 70,000. Commission 2% on sale plus 20% of gross sale less all commission exceeds cost price. The amount of commission will be (a) Rs.2,900 (b) Rs.3,333 (c) Rs.2,833 (d) Rs.2,800 26. On 1.7.06, Ravi draws a bill on Raju for Rs. 10,000. At maturity Raju requests Ravi to renew the bill for 2 months at 15% p.a. interest. Amount of interest will be (a) Rs. 200 (b) Rs. 250 (c) Rs. 300 (d) Rs. 325 27. Credit purchase of cotton by cotton dealer worth Rs. 10,000 will be entered in (a) Sales Book (b) Bill Receivable Book (c) Purchase Book (d) None of the above 28. Goods worth Rs. 5,000 given as charity should be credited to (a) Purchases A/c (b) Sales A/c (c) Capital A/c (d) None of the above 29. Anurag and Basu entered into a joint venture and agreed to share equal profits. Anurag purchased goods costing 2,00,000, Basu sold 4/5th of the goods for Rs. 2,50,000. Balance goods were taken over by Basu at cost less 20%. If same set of books is maintained, find out profit on venture (a) Rs.90,000 (b) Rs.85,000 (c) Rs.83,000 (d) Rs.82,000 30. Brij Ltd. purchased a machine on 1.1.2010 for Rs. 2,40,000. Installation expenses were Rs. 20,000. Residual value is estimated to be Rs. 5,000. On 1.1.2010, expenses for repair were increased to the extent of Rs. 5,000 depreciation is provided under straight line method. Depreciation rate is 10%. Annual depreciation will be (a) Rs.20,000 (b) Rs.26,500 (c) Rs.26,000 (d) Rs.23,000 32 Common Proficiency Test (CPT) Volume - II © The Institute of Chartered Accountants of India 31. J, K and L are partners sharing profits and losses in the ratio of 3 : 2 : 1. They look a joint life policy of Rs. 60000. On the death of L, what amount will be payable to each partner. (a) J = Rs.15,000, K = Rs.30,000, L = Rs.15,000 (b) J = Rs.10,000, K = Rs.20,000, L = Rs.30,000 (c) J = Rs.30,000, K = Rs. 20,000, L = Rs.10,000 (d) J = Rs.30,000, K = Rs.30,000 32. Sale of office furniture should be credited to (a) Furniture A/c (b) Sales A/c (c) Cash A/c (d) Purchase A/c 33. Pankaj Ltd. issued 500 equity shares of Rs. 100 each as fully paid up in consideration of purchase of plant and machinery Rs. 40000. What will be the amount of discount an issue of shares (a) Rs. 15,000 (b) Rs. 10,000 (c) Rs. 5,000 (d) Rs. 1,000 34. Omega Ltd. issued 5000 shares of Rs. 20 each. The called up value per share was Rs. 16. The company forfeited 400 shares of Mr. Ajay for non-payment of 1st Call money of Rs. 4 per share. He paid Rs. 12 for application and allotment money. On forfeiture, the share capital A/c will be (a) Debited by Rs. 6,400 (b) Credited by Rs. 1,600 (c) Debited by Rs. 1,600 (d) None of the above 35. Sundry debtors on 31st March, 2010 are Rs. 1,05,000. Further bad debts are Rs. 5,000, sales return recorded in the books Rs. 10,000. Old provision for bad debts is Rs. 4,000. Provision for doubtful debts is to be made on debtors @ 10% and also provision of discount is to be made on debtors @ 3%. What will be the amount of bad debts charged in Profit and Loss A/ c after considering provisions for bad debts? (a) Rs.2,700 (b) Rs. 10,000 (c) Rs.12,700 (d) Rs. 6,000 36. In the bank reconciliation statement, when balance as per cash book is taken as the starting point, the direct deposits from customer of Rs. 10,000 in the bank will be (a) Subtracted (b) Added (c) Ignored (d) None of the above 37. The profit of the M/s JPH, a partnership firm before charging managerial commission is Rs. 84,000. The managerial commission is charged @ 5% on profit after charging such commission. The amount of managerial commission will be (a) Rs. 4,200 (b) Rs 8,400 (c) Rs. 4,000 (d) Rs. 8,000 Common Proficiency Test (CPT) Volume - II 33 © The Institute of Chartered Accountants of India MODEL TEST PAPER - 2 38. Naveen of Nagpur sends out 1,000 boxes costing 1,00,000 to Deepak of Delhi at cost +20% consignor’s expenses were: Freight Rs. 6,000 Insurance Rs. 2,000 Consignee’s expenses were : Loading and Unloading charges Rs. 10,000 Salesman salary Rs. 6,000 and Commission 2% on Gross sales. What will be the amount of profit if 3/4th goods sold by consignee at Rs. 1,00,000 (a) Rs. 5,500 (b) Rs. 6,500 (c) Rs. 7,500 (d) Rs. 3,500 39. Manish sold goods to Kamal for Rs. 25,000. Manish will grant 2% discount to Kamal. Kamal requested Manish to draw a bill. The amount of bill will be (a) Rs.25,000 (b) Rs.24,750 (c) Rs.24,500 (d) Rs.24,250 40. Edward Motors Ltd. a dealer in cars has the following five vehicles of different models and makes in their stock at the end of the financial year 2005-06 Car Cost (Rs.) Market Price (Rs.) (i) Zen 2,00,000 2,10,000 (ii) Fiat 3,50,000 3,70,000 (iii) Esteem 3,25,000 3,20,000 (iv) Honda City 6,00,000 6,30,000 (v) Optra 7,25,000 7,00,000 The value of stock included in balance sheet of the company as on 31 March, 2006 was (a) 21,70,000 (b) 22,00,000 (c) 22,30,000 (d) 22,60,000 41. Mr. Anuj sent 2000 units costing Rs. 1800 each to Mr. Mahipal. The goods were to be sold as to yield a gross profit of 20% on sales. Mr. Mahipal sold 1200 units @ 2050 per unit on credit and 650 units @ Rs. 2300 per units on cash. Mr. Mahipal is entitled to a commission Rs. 300 per unit. The amount of commission will be (a) Rs. 5,55,000 (b) Rs. 5,70,000 (c) Rs. 5,90,000 (d) Rs. 6,10,000 42. Vimal and Vishal are partners sharing profits and losses in the ratio of 2 : 1. On 1st Jan 2009, Vasu is admitted with 1/4th share in profits with guaranteed amount of Rs. 25,000. The profits for the year ended 31 Dec, 2009 amounting to Rs. 76,000. The share of Vishal in the profits should be (a) Rs. 19,000 (b) Rs. 17,000 (c) Rs. 15,000 (d) Rs. 13,000 34 Common Proficiency Test (CPT) Volume - II © The Institute of Chartered Accountants of India 43. Rohit and Raja enter into a joint venture to sell cotton, sharing profit, and losses equally. Rohit provides cotton from stock Rs. 1,00,000. He pays expenses amounting Rs. 10,000. Raja incurs further expenses on carriage Rs. 10,000. He received cash on sale of cotton Rs. 1,50,000. He also takes over goods to the value of Rs. 20,000. Profit on venture will be (a) Rs. 30,000 (b) Rs. 40,000 (c) Rs. 45,000 (d) Rs. 50,000 44. The profits of last three years are Rs. 58,000, Rs. 55,000 and Rs. 61,000. Capital employed is Rs. 500000 and normal rate of return is 10%. The amount of goodwill calculated on the basis of super profit method for three years of purchase will be (a) Rs. 8,000 (b) Rs. 16,000 (c) Rs. 24,000 (d) Rs. 32,000 45. “Inventories should be out of godown in the sequence in which they arrive” is based on (a) FIFO (b) Weighted average (c) LIFO (d) None of the above 46. The following information pertains to Sethi Ltd. (i) Equity share capital called up Rs. 10,00,000 (ii) Call in advance Rs. 90,000 (iii) Call in arrear Rs. 1,10,000 (iv) Proposed Dividend 12% Amount of dividend for the year will be (a) Rs. 1,17,600 (b) Rs. 96,000 (c) Rs. 1,06,800 (d) Rs. 1,20,000 47. Reserve Capital means (a) Part of subscribed uncalled capital (b) Accumulated profit (c) Part of Capital Reserve (d) Part of Capital Redemption Reserve 48. The weekly or monthly total of the purchase book is (a) Posted to the debit of the purchase A/c (b) Posted to the credit of the purchase A/c (c) Posted to the credit of the bill payable A/c (d) None of the above 49. Revenue from sale of product ordinarily is reported as part of earning in the period (a) The planning takes place (b) The sale is made (c) The product is manufactured (d) The cash is collected Common Proficiency Test (CPT) Volume - II 35 © The Institute of Chartered Accountants of India MODEL TEST PAPER - 2 50. Mr. Yogesh was the holder of 700 shares of Rs. 100 each in KFC Ltd. upon which 50 per share had been called up but he had paid only Rs. 25 per share thereon. The company forfeited his shares and afterwards sold them to Kamlesh, credited as Rs. 50 per share paid for Rs. 25,000. The amount to be transfer to capital reserve is (a) Rs. 7,500 (b) Rs. 25,000 (c) Rs. 35,000 (d) Rs. 70,000 51. DBM Ltd. issued 7,000, 5% debentures of Rs. 100 each at a discount of 6%, redeemable at a premium of 5% after 5 years payable as Rs. 50 on application and Rs. 44 on allotment. Total amount of discount/loss on issue of debenture will be (a) Rs. 42,000 (b) Rs. 35,000 (c) Rs. 77,000 (d) Rs. 1,22,000 52. From the following figures ascertain the gross profit/loss Opening stock = Rs. 60,000 Cost of good sold = Rs. 2,20,000 Freight on purchase = Rs. 1,20,000 Sale = Rs. 3,00,000 (a) Rs. 80,000 (b) Rs. 8,000 (c) Rs. 20,000 (d) Rs. 68,000 53. Abhi draws a bill on Ravi for Rs. 1,00,000 for 3 months. At maturity, the bill returned dishonoured, noting charges Rs. 1,000. Ravi was declared insolvent and only 30 paise in a rupee was recovered from his estate. The amount of deficiency to be recorded on insolvency in the books of Ravi will be (a) Rs. 30,300 (b) Rs. 29,400 (c) Rs. 35,500 (d) Rs. 70,700 54. M, N and O are partners sharing profit and losses in the ratio of 3 : 2 : 1. P joins the firm and gets 2/10th of share in the ratio of 1 : 1 from M and N calculate new ratio (a) 24 : 14 : 5 : 6 (b) 12 : 7 : 5 : 6 (c) 12 : 7 : 10 : 12 (d) 24 : 10 : 14 : 12 55. Original cost = Rs. 2,52,000 Salvage value = 12000. Depreciation for 3rd year @ 5% p.a. under W.D.V method (a) Rs. 12,600 (b) Rs. 11,382 (c) Rs. 11,372 (d) Rs. 11,970 56. Tarun Ltd. purchased building from Varun Ltd. for a book value of Rs. 400000. The consideration was paid by issue of 12% debentures of Rs. 100 each at a discount of 20%. The debenture account will be credited (a) Rs. 5,00,000 (b) Rs. 4,00,000 (c) Rs. 1,00,000 (d) None of the above 36 Common Proficiency Test (CPT) Volume - II © The Institute of Chartered Accountants of India 57. Goods sold for cash Rs. 50000, plus 10% sales Tax. Sales will be credited by (a) Rs. 45,000 (b) Rs. 50,000 (c) Rs. 55,000 (d) Rs. 60,000 58. Ram and Shyam enter into a joint venture sharing profits and losses in the ratio 3:2. Ram purchased goods costing Rs. 200000. Other expenses of Ram Rs. 10000. Shyam sold goods for Rs. 180000. Remaining goods were taken over by Shyam at Rs. 20000. The amount of final remittance to be paid by Shyam to Ram will be (a) Rs. 2,15,000 (b) Rs. 2,06,000 (c) Rs. 2,10,000 (d) None of the above 59. Net realisable value means : (a) Sales less cost incurred necessarily to make the sale (b) Sales less sales return (c) Sales less cost of purchase (d) Sales less gross profit margin 60. In the absence of a partnership deed, the allowable rate of interest on partners loan account will be (a) 4% (b) 7% (c) 6% (d) 12% SECTION – B : MERCANTILE LAWS (40 MARKS) 61. A general offer may be accepted by (a) Any person (b) Promisee only (c) Legal representative only (d) Any of these 62. Moral pressure is involved in the case of (a) Coercion (b) Undue - influence (c) Misrepresentation (d) Fraud 63. An unpaid seller is bound to resell the goods (a) False (b) True (c) Unpaid seller can sue for compensation (d) Unpaid seller can force to pay the price 64. Communication of acceptance, as against the proposer, is complete. (a) When the letter of acceptance is put into a course of transmission (b) When the letter of acceptance reaches the proposer (c) When the proposer has actually learnt the contents of the letter of acceptance (d) None of the above Common Proficiency Test (CPT) Volume - II 37 © The Institute of Chartered Accountants of India MODEL TEST PAPER - 2 65. In a unilateral contract (a) Only one of the parties makes a promise (b) One of the parties has already performed his part of the promise (c) Both the parties have to perform their respective promises (d) Not a contract at all 66. Standing offer means (a) Offer allowed to remain open for acceptance over a period of time (b) After made to the public is general (c) When the offeree offers to qualified acceptance of the offer (d) Offer made to a definite person 67. A contract stands discharged by (a) Performance of the contract (b) Frustration of the contract (c) both (a) & (b) (d) Neither (a) nor (b) 68. Offer of promise to perform must be made (a) at the proper time (b) at the proper place (c) at the proper form (d) All of the above 69. A promisor can perform the promise (a) Through his representatives irrespective of the competency of that representative (b) Through his representative component to perform (c) Himself (d) None of the above 70. Assignment of contract may be by (a) Operation of law (b) The act of parties (c) (a) or (b) (d) None of the above 71. Reasonable time for a performance of a contract is a (a) Question of fact (b) Question of prudence (c) Question of law (d) Mixed question of fact and law 72. Whether time is essence of the contract depends on the (a) Provisions of law (b) Intention of the parties (c) Facts and circumstances of each separate case (d) All of the above 73. Contract can be discharged by agreement between parties by the way (a) Remission (b) Waiver (c) (a) or (b) (d) (a) and (b) 38 Common Proficiency Test (CPT) Volume - II © The Institute of Chartered Accountants of India 74. The damage awarded by way of punishment is (a) Vindictive damages (b) Special damages (c) Nominal damages (d) Ordinary damages 75. Anticipatory breach of contract may be (a) Express (b) Implied (c) (a) or (b) (d) (a) and (b) both 76. Specific performance may be ordered by the Court in the following cases (a) When the damages are an adequate remedy (b) When defaulting party is not ready to pay damages (c) When damages are not an adequate remedy (d) When the contract is voidable 77. A finder of lost goods can be treated as (a) Thief (b) Bailor (c) Bailee (d) True owner 78. The quasi-contracts includes- (a) Payment by an interested person (b) Liability to pay for non-gratuitous act (c) Both (a) & (b) (d) Neither (a) nor (b) 79. Price consideration in a contract of sale can be (a) Only by way of money (b) Only by way of goods in return (c) Party by way of money or partly by way of goods return (d) No consideration is required at all 80. An agreement to sell is _______ contract. (a) Executed (b) Executory (c) Implied (d) Unilateral 81. Consideration in _______ passes from both parties to each other. (a) Sale (b) Gift (c) Transfer (d) None of these 82. In agreement to sell buyer _______ goods on insolvency of seller. (a) Cannot claim (b) Can claim (c) Can conditionally claim (d) None of the above Common Proficiency Test (CPT) Volume - II 39 © The Institute of Chartered Accountants of India MODEL TEST PAPER - 2 83. Where there is an unconditional contract for sale of _______ , the property passes to the buyer at the time when contract is made. (a) Unascertained goods (b) Specific goods in a deliverable state (c) Specific goods to be put in a deliverable state (d) Specific goods in a non-deliverable state 84. Partnership is created by _______ among the partners. (a) Mutual status (b) Agreement (c) Understanding (d) Birth 85. Every partner has the right to _______. (a) Take part in the business of the firm (b) To share exclusive profits (c) To use the property of the firm for personal purposes (d) Pay taxes 86. Nature of the partnership is: (a) Involuntary and Contractual (b) Statutory and Contractual (c) Voluntary and Contractual (d) Economical & Ethical 87. The partner who does not take part in the conduct of the business is known as _______. (a) Sub partner (b) Nominal partner (c) Sleeping partner (d) All of the above 88. Each partner of a firm is _______. (a) Principals as well as agents (b) Only agents of the firm (c) Only representative of the firm (d) Only Co-partners of the firm 89. A partnership firm is _______. (a) Judicial person (b) Not a distinct legal entity from its partners (c) A distinct legal entity from its partners (d) Either (a) or (c) 90. The members of a club or associations have _______ of the club or association. (a) Interest in the property (b) Mutual agency (c) Membership (d) Both (a) and (b) 91. In all the joint Hindu family firms, their _______ are personally liable to third parties. (a) Kartas and major members (b) Kartas only (c) All major members (d) All the members 40 Common Proficiency Test (CPT) Volume - II © The Institute of Chartered Accountants of India 92. Where seller resells the goods after giving notice to the buyer, the _______ shall not be entitled to any profit which may occur on resale. (a) Buyer (b) Seller (c) Bailee (d) Buyer and seller 93. Goods which are in the existence at the time of the contract of sale is known as ________. (a) Present goods (b) Specific goods (c) Ascertained goods (d) Existing goods 94. A _________ is a stipulation collateral to the main purpose of the contract. The breach of which gives rise to a claim for damages but not a right to reject the goods and treat the contract repudiate. (a) Warranty (b) Condition (c) Implied condition (d) None of the above 95. In a contract of sale of goods, breach of condition may be treated as breach of _______. (a) Guarantee (b) Term (c) Warranty (d) Promise 96. ___________ signifies that the parties are not further bound under the contract. (a) Discharge of a contract (b) Breach of a contract (c) Waiver of a contract (d) Recission of a contract 97. When a contract expressly provides for the order of performance of reciprocal promises, the promises shall be performed in ___________. (a) Any reasonable order (b) Any appropriate order (c) Any order (d) The order mentioned and not otherwise 98. A third party to a contract ________ the parties to the contract: (a) Can sue conditionally (b) Cannot sue (c) Can sue unconditionally (d) None of the above 99. ‘A’ is a minor, who broke his right leg in a cricket match. He engaged, a doctor, to set it. Does the doctor have a valid claim for his services? Decide. (a) Minor will be personally liable. (b) Minor’s parents will be liable. (c) Minor’s properties, if any, can be held liable for necessary services rendered to a minor . (d) Nobody will be liable. Common Proficiency Test (CPT) Volume - II 41 © The Institute of Chartered Accountants of India MODEL TEST PAPER - 2 100. ‘A’ lends a horse to ‘B’ for his own riding only ‘B’ and ‘C’, his wife, to ride the horse, ‘C’, rides with care, but the horse accidentally falls and is injured. Decide the liability. (a) A will not be liable. (b) A’s wife will be liable. (c) A is liable to make compensation. (d) Nobody will be liable. SECTION – C : GENERAL ECONOMICS (50 MARKS) 101. In Economics, the central economic problem means: (a) Output is restricted to the limited availability of resources (b) Consumers do not have as much money as they would wish (c) There will always be certain level of unemployment (d) Resources are not always allocated in an optimum way 102. The other names of ———— method are abstract, analytical and priori method. (a) Inductive method (b) Economic method (c) Deductive method (d) None of the above 103. All points on PPC show that goods and services are produced at: (a) Least cost and some resources are wasted (b) High cost and no resources are wasted (c) Least cost and no resources are wasted (d) Moderate cost and no resources are wasted 104. Which of the following is a cause of an economic problem? (a) Scarcity of Resources (b) Unlimited wants (c) Alternative uses (d) All of the above 105. Calculate income elasticity for the household when the income of a household rises by 10 %, the demand for Rice rises by 5%. (a) - .5 (b) + .5 (c) - 2 (d) + 2 106. When two goods are perfect substitutes of each other then (a) MRS is falling (b) MRS is rising (c) MRS is constant (d) None of the above 107. The Law of Scarcity (a) Does not apply to rich, developed countries (b) Does not apply to poor, under developed countries (c) Implies only to socialist economies. (d) Implies that all consumer wants will never be completely satisfied. 42 Common Proficiency Test (CPT) Volume - II © The Institute of Chartered Accountants of India 108. Scarcity definition of economics is given by (a) Alfred Marshall (b) J. B. Say (c) Allen and Hicks (d) Robbins 109. In case of a Giffin good, the demand curve will be: (a) Horizontal (b) Downward- sloping to the right (c) Vertical (d) Upward – sloping 110. Which of the following statements is incorrect? (a) The services of doctors, lawyers, teachers etc are termed as production (b) Man cannot create matter (c) Accumulation of capital does not depend solely on income (d) None of the above 111. Which is the other name given to Average revenue curve? (a) Profit curve (b) Demand curve (c) Indifference curve (d) Income curve 112. Which of the following is not the function of RBI? (a) Issue of currency (b) Bankers’ bank (c) Controller of credit (d) Banker to general public 113. The IMF was set up in: (a) 1945 (b) 1946 (c) 1947 (d) 1950 114. M1 is defined by RBI (as per latest definition) as (a) Currency + Deposits + other deposits with RBI (b) Currency + Demand Deposits + other deposits with RBI (c) Currency + Fixed Deposits + other deposits with RBI (d) Currency + Time Deposits + other deposits with RBI 115. Nationalised Banks include: (a) SBI (b) Citibank (c) American Express Bank (d) All of the above 116. Two Nationalized banks were merged in the year: (a) 1991 (b) 1975 (c) 1980 (d) 1993 117. Out of 5.6 lakh villages in India, only _______villages are being served by commercial banks: (a) 56,000 (b) 10,000 (c) 5,000 (d) 50,000 Common Proficiency Test (CPT) Volume - II 43 © The Institute of Chartered Accountants of India MODEL TEST PAPER - 2 118. 100 percent privatization has taken place in: (a) VSNL (b) Hindustan Zinc (c) IBP Company (d) Centaur Hotel 119. The disinvestment programme was started in: (a) 1990-91 (b) 1991-92 (c) 1995-96 (d) 1997-98 120. TRIPs stand for: (a) Trade Related Intellectual Property Rights (b) Transaction Related Intellectual Property Rights (c) Trade Related Intelligence Property Rights (d) Trade Related International Property Rights 121. 100% FDI is Permitted is: (a) Oil Refineries (b) Banking (c) Insurance (d) Defense 122. Duty Free Export Credit Scheme has been revamped and re-cast into: (a) Made in India model (b) Served from India Scheme (c) India’s Shining Scheme (d) EPCG Scheme 123. Export Promotion Capital Goods scheme was abolished in: (a) 1991 (b) 2002 (c) 2005 (d) False, it is still continuing 124. Financial sector reforms mainly relate to: (a) Banking sector reforms (b) Capital reforms (c) Insurance sector reforms (d) All of the above 125. FDI has been allowed in defense upto: (a) 74% (b) 49% (c) 26% (d) 100% 126. Administered prices means (a) Prices fixed by private sector under the guidance of government (b) Prices fixed by consumer forums (c) Prices fixed by the Government and private sector (d) Price level fixed by the Government 44 Common Proficiency Test (CPT) Volume - II © The Institute of Chartered Accountants of India