Common Proficiency Test Model Paper 1

64. Which of the following agreements is void? (a) Agreements made under the unilateral mistake of fact (b) Agreements made under the bilateral mistake of fact (c) Agreements made under the influence of fraud (d) Contingent agreement 65. Which of the following offers constitute a valid offer? (a) An auctioneer displays a TV. set before a gathering in an auction sale (b) Ram who is in possession of three cars purchased in different years says ‘I will sell you a car’ (c) A says to B, “Will you purchase my motor cycle for Rs. 20,000? (d) All of the above 66. Which of the following statements is true? (a) Even if a proposal is not accepted properly it becomes a valid contract (b) The agreements which are against the public policy can be enforced if the parties are willing to contract (c) A contract can consist of an offer or an acceptance only (d) Two are more persons are said to consent when they agree upon the same thing in the same sense 67. Contract caused by which of the following is void? (a) Fraud (b) Misrepresentation (c) Coercion (d) Bilateral Mistake 68. Suppose the time fixed for performance of the contract has expired but the time is not essential. What is the remedy of the promisee in the circumstances? (a) Can rescind the contract (b) To claim compensation (c) No remedy available (d) Can’t be determined 69. What is legal terminology for the doing or not doing of something which the promisor desires to be done or not done? (a) Desires (b) Wishes (c) Consideration (d) Promise 70. Goods must be the same as wanted by the seller. This is (a) Condition as to description (b) Condition as to sample (c) Condition as to wholesomeness (d) Condition as to title 71. Goods dependant upon certain events which may or may not happen. (a) Unascertained goods (b) Future goods (c) Contingent Goods (d) Existing Goods Common Proficiency Test (CPT) Volume - I 95 © The Institute of Chartered Accountants of India MODEL TEST PAPER - 4 72. Which of the following is a not document of title to goods? (a) Bill of Lading (b) Railway Receipt (c) Dock Warrant (d) Performa invoice 73. The term ‘goods’ for the purpose of Sale of Goods Act, includes (a) Money (b) Actionable claims (c) Growing crops, grass (d) None of these 74. In which of the following cases, the unpaid seller loses his right of lien? (a) Delivery of goods to buyer (b) Delivery of goods to carrier (c) Tender of price by buyer (d) All of these 75. In case of sale of standing trees, the property passes to the buyer when trees are (a) Felled and ascertained (b) Not felled but earmarked (c) Counted and ascertained (d) Both (b) and (c) 76. Partnership (a) Arises by operation of law (b) Comes into existence only after registration (c) Can arise by agreement or otherwise (d) Arise by way of an agreement only 77. X and Y agree to work together as carpenters but X shall receive all profit and shall pay wages to Y. The relation between X and Y is that (a) Partners (b) Carpenters (c) Labourers (d) Master-Servant 78. Which of the following is an essential feature of partnership? (a) Registration (b) Test of Mutual Agency (c) Separate Legal Entity (d) All of the above 79. Which of the following acts are not included in the implied authority of a partner? (a) To buy or sell goods on accounts of partners (b) To borrow money for the purposes of firm (c) To enter into partnership on behalf of firm (d) To engage a lawyer to defend actions against firm 80. Implied contract, even if not in writing or express words, is perfectly ________if other conditions are satisfied (a) Void (b) Valid (c) Voidable (d) Illegal 96 Common Proficiency Test (CPT) Volume - I © The Institute of Chartered Accountants of India 81. R, an optical surgeon, employs S as the assistant for a term of three years and S agrees not to practice as a surgeon during this period. This contract is _________ (a) Valid (b) Void (c) Voidable (d) Illegal 82. ________ consideration is no consideration in England. (a) Past (b) Present (c) Future (d) Past and Present 83. A agrees to pay Rs. 500 to B if it rains, and B promises to pay a like amount to A if it does not rain, this agreement is called ___________. (a) Quasi Contract (b) Contingent Contract (c) Wagering Agreement (d) Voidable Contract 84. When the offeree offers to qualified acceptance of the offer subject to modifications and variations he is said to have made a ___________. (a) Standing, open or continuing offer (b) Counter Offer (c) Cross Offers (d) Special Offer 85. When after the formation of a valid contract, an event happens which makes the performance of contract impossible, and then the contract becomes ___________. (a) Void (b) Voidable (c) Valid (d) Illegal 86. Where the performance of a promise by one party depends on the prior performance of promise by the other party, such reciprocal promises fall under the category of __________. (a) Mutual and concurrent (b) Conditional and dependent (c) Mutual and independent (d) Can’t be determined 87. The basis of ‘quasi contractual relations’ is the __________. (a) Existence of a valid contract between the parties (b) Prevention of unjust enrichment at the expense of others (c) Provisions contained in Section 10 of the Contract Act (d) Existence of a voidable contract between the parties 88. A agrees to pay Rs. 1000 to B if a certain ship returns within a year. However, the ship sinks within the year. In this case, the contract becomes __________ (a) Valid (b) Void (c) Voidable (d) Illegal Common Proficiency Test (CPT) Volume - I 97 © The Institute of Chartered Accountants of India MODEL TEST PAPER - 4 89. Where an agreement consists of two parts once legal and the other illegal, and the legal part is separable from the illegal one, such legal part is __________. (a) Void (b) Valid (c) Voidable (d) Illegal 90. The Sale of Goods Act, 1930 came into force on __________. (a) 15th March, 1930 (b) 1st July, 1930 (c) 30th July, 1930 (d) 30th June, 1930 91. Contract of Sale is __________. (a) Executory Contract (b) Executed Contract (c) Executory Contract or Executed Contract (d) None of the above 92. Where in an auction sale, the seller appoints more than one bidder, the sale is __________. (a) Void (b) Illegal (c) Conditional (d) Voidable 93. Where the goods are delivered to a carrier or wharfinger for the purpose of transmission to the buyer, the delivery is __________. (a) Invalid and ineffective (b) Valid and effective (c) Conditional (d) None of these 94. The property in the goods means the __________. (a) Possession of goods (b) Custody of goods (c) Ownership of goods (d) Both (a) and (b) 95. Untill goods are ascertained there is merely __________. (a) An agreement to sell (b) A breach of warranty (c) A breach of condition (d) All the above 96. The rights of an agent against the principal are the following __________. (a) Right of indemnification (b) Right to compensation (c) Right of stoppage in transit (d) All of the above 97. Discharge by mutual agreement may involve__________. (a) Novation (b) Recission (c) Alteration (d) All of the above 98. A enquires from B, “Will you purchase my cow for $ 100?” B replies, “I shall purchase your cow for $ 100 provided you purchase my parrot for $ 120.” In this case __________. (a) B has accepted the offer of A (b) B has made a counter offer to A (c) A is bound by the actions of B (d) B cannot make such an offer 98 Common Proficiency Test (CPT) Volume - I © The Institute of Chartered Accountants of India 99. A sold 1000 tins of oil to B without appropriating any particular oil to the contract. B sold 600 tins out it to C and gave delivery order addressed to A. C lodged the delivery order with A requesting him to “await” his orders. Meanwhile, B became insolvent and thus A became the unpaid seller. (a) A can exercise his right of lien and refuse to make delivery to C (b) A cannot exercise his right of lien and refuse to make delivery to C (c) C has claim over the goods in possession of A (d) None of the above 100. X fraudulently induced Y to enter into partnership with him and Y pays a premium of Rs.5,000/- to A. Within three months the firm incurs liabilities to the extent of Rs.10,000/-. On discovering the fraud, Y files a suit for the rescission of the contract creating partnership and contract is rescinded. The creditors of the firm also levy attachment on Y who pays Rs.3,000/- to them as well. Which of the following is correct? (a) Y can obtain a decree for Rs.8000/- against A (b) Y can obtain a decree for Rs.5000/- against A (c) Y can obtain a decree for Rs.3000/- against A (d) Y cannot obtain a decree for either Rs.5,000/- or Rs.3,000/- or Rs.8000/- against SECTION – C : GENERAL ECONOMICS(50 MARKS) 101. Find the correct match: (a) An enquiry into the nature and causes of the wealth of the nation: A.C.Pigou. (b) Science which deals with wealth: Alfred Marshall. (c) Economics is the science which studies human behaviour as a relationship between ends and scarce means which have alternative uses: Robbins. (d) The range of our enquiry becomes restricted to that part of social welfare that can be brought directly or indirectly into relation with the measuring rode of money: Adam Smith. 102. Suppose the demand for meals at a medium-priced restaurant is elastic. If the management of the restaurant is considering raising prices, it can expect a relatively: (a) large fall in quantity demanded (b) large fall in demand (c) small fall in quantity demanded (d) small fall in demand 103. Which of the following is not a characteristic of a “price taker”? (a) TR = P x Q (b) AR = Price (c) Negatively – sloped demand (d) Marginal Revenue = Price 104. Which cost increases continuously with the increase in production? (a) Average cost (b) Marginal cost (c) Fixed cost (d) Variable cost Common Proficiency Test (CPT) Volume - I 99 © The Institute of Chartered Accountants of India MODEL TEST PAPER - 4 105. Which one is not an assumption of the theory of demand based on analysis of indifference curves? (a) Given scale of preferences as between different combinations of two goods (b) Diminishing marginal rate of substitution (c) Constant marginal utility of money (d) Consumers would always prefer more of a particular good to less of it, other things remaining the same 106. Which of the following statements is correct? (a) Under zamindari system, farmers directly paid land revenue to the state. (b) At present, income tax revenues from the agriculture sector are negligible. (c) Commercial banks are providing loans to the agriculture sector at zero interest rate (d) None of the above 107. We can say Indian agriculture has become modern since: (a) there has been an increased in the use of high yielding varieties of seeds, fertilizers, pesticides etc. (b) there has been noticeable positive change in the attitude of farmers towards new techniques of production (c) farmers are increasingly resorting to intensive cultivation, multiple cropping, scientific water management (d) all of the above 108. Which of the following statements is correct? (a) The demand and the supply of fuel are almost equal (b) Our import bill on account of oil has been decreasing since 1990 (c) Oil prices have been decreasing since 1973 (d) Transmission and distribution losses of power companies are very high 109. Sahara Jet and Kingfisher are examples of: (a) Private schools (b) Private airlines (c) Private ships (d) Private railways 110. All of the following developments were noticed during 1991(when economic reforms were enforced) except one. Identify it. (a) National debt was nearly 60 percent of the GNP of India (b) Inflation crossed double digits (c) Foreign reserves were maintained at a very high level (d) None of the above 100 Common Proficiency Test (CPT) Volume - I © The Institute of Chartered Accountants of India 111. All of the following statements except one are correct about the foreign trade policy, 2004- 09. Identify the incorrect statement: (a) Certain thrust areas like agriculture, handlooms, handicrafts etc have been identified (b) Vishesh Krishiupaj Yojana has been started (c) ‘Served from India’ scheme has been started (d) The entry of FDI in India has been restricted 112. The economic reforms have failed to: (a) keep fiscal deficits to the targeted levels (b) fully implement industrial deregulation (c) fully open the economy to trade (d) all of the above 113. Broad money refers to (a) M (b) M 1 2 (c) M (d) M 3 4 114. Nationalization of banks aimed at all of the following except: (a) removal of control by a few (b) provision of credit to big industries only (c) provision of adequate credit for agriculture, small industry and export units (d) encouragement of a new class of entrepreneur 115. In order to encourage investment in the country, the RBI may: (a) reduce CRR (b) increase CRR (c) sell securities in the open market (d) increase Bank rate 116. Which of the following statements is incorrect? (a) The Indian road net work is one of the longest in the world (b) The rural road network connects around 65 percent of all weather roads (c) Most of the State Road Transport Corporations are running on profits (d) The National highways carry more than 40 percent of the total road traffic 117. ————— expressed the view that “Economics is neutral between end”. (a) Robbins (b) Marshall (c) Pigou (d) Adam Smith 118. The law of demand refers to —————. (a) price-supply relationship (b) price-cost relationship (c) price-demand relationship (d) price-income relationship Common Proficiency Test (CPT) Volume - I 101 © The Institute of Chartered Accountants of India MODEL TEST PAPER - 4 119. Increasing returns imply —————. (a) constant average cost (b) diminishing cost per unit of output (c) optimum use of capital and labour (d) external economies 120. In monopolistic competition, a firm is in long run equilibrium —————. (a) at the minimum point of the LAC curve (b) in the declining segment of the LAC curve (c) in the rising segment of the LAC curve (d) when price is equal to marginal cost 121. Of the major 12 ports, ————— is the top traffic handler. (a) Paradip (b) Cochin (c) Vishakhapatnam (d) Mumbai 122. On an average, one post office in India serves —————. (a) 100 persons (b) 1000 persons (c) 7174 persons (d) 5800 persons 123. At present, nearly ————— percent of the energy consumed is obtained from non- commercial traditional sources. (a) 45 (b) 51 (c) 27 (d) 10 124. ————— refers to the transfer of assets or services functions from public to private ownership. (a) Globalization (b) Privatization (c) Disinvestment (d) Liberalization 125. At present only ————— industries are reserved for the public sector. (a) 5 (b) 7 (c) 8 (d) 3 126. At present, Bank rate is ————— percent. (a) 5 (b) 6 (c) 6.5 (d) 5.5 127. ————— is the official minimum rate at which the central bank of a country is prepared to rediscount approved bills held by banks. (a) CRR (b) SLR (c) Bank rate (d) Repo rate 102 Common Proficiency Test (CPT) Volume - I © The Institute of Chartered Accountants of India 128. EPCG stands for —————. (a) Export Promotion Capital Goods (b) Expert Programme for Credit Generation (c) Exchange Programme for Consumer Goods (d) Export Promotion Consumer Goods 129. The area under irrigation has ————— over the years in India. (a) remained constant (b) decreased (c) increased. (d) first increased and then decreased 130 . The service sector in India now accounts for —————. (a) more than 80 percent of GDP (b) more than 70 percent of GDP (c) more than 50 percent of GDP (d) more than 90 percent of GDP 131. ————— is the Banker’s Bank in India. (a) SBI (b) PNB (c) RBI (d) OBC 132. According to the 2001 census the total literacy ratio is (a) 32.5% (b) 65.4% (c) 52.1% (d) 75.8% Questions 133 to 137 are based on the demand and supply diagrams in Figure 1. D and S 1 1 are the original demand and supply curves. D , D , S and S are possible new demand and 2 3 2 3 supply curves. Starting from initial equilibrium point (1) what point on the graph is most likely to result from each change? Common Proficiency Test (CPT) Volume - I 103 © The Institute of Chartered Accountants of India MODEL TEST PAPER - 4 133. Assume X is a normal good. Holding everything else constant, assume that income rises and the price of a factor of production also increases. What point in Figure 1 is most likely to be the new equilibrium price and quantity? (a) Point 9 (b) Point 5 (c) Point 3 (d) Point 2. 134. We are analyzing the market for good Z. The price of a complement good, good Y, declines. At the same time, there is a technological advance in the production of good Z. What point Figure 1 is most likely to be the new equilibrium price and quantity? (a) Point 4 (b) Point 5 (c) Point 7 (d) Point 8 135. Heavy rains in Maharashatra during 2005 and 2006 caused havoc with the rice crop. What point in Figure 1 is most likely to be the new equilibrium price and quantity? (a) Point 6 (b) Point 3 (c) Point 7 (d) Point 8 136. Assume that consumers expect the prices on new cars to significantly increase next year. What point in Figure 1 is most likely to be the new equilibrium price and quantity? (a) Point 6 (b) Point 5 (c) Point 3 (d) Point 8 137. What combinations of changes would most likely decrease the equilibrium quantity? (a) When supply increases and demand decreases (b) When demand increases and supply decreases (c) When supply increases and demand increases (d) When demand decreases and supply decreases 104 Common Proficiency Test (CPT) Volume - I © The Institute of Chartered Accountants of India Use Table 1 to answer questions 138 - 141 Table 1 Quantity Average Fixed Average Total Marginal cost cost cost 0 - - - 1 80.00 100.00 20 2 40.00 58.00 17 3 26.66 44.00 15 4 20.00 36.25 13 5 16.00 31.40 12 6 13.33 28.33 13 7 11.42 26.29 14 8 10.00 26.13 25 9 8.88 26.56 30 10 8.00 27.30 34 11 7.27 28.45 40 12 6.66 30.00 47 13 6.15 31.92 55 138. Refer to Table 1 which lists the average costs of a perfectly competitive firm. If the price of the good is Rs 13, the firm will be produce (a) 4 units at a loss of Rs. 93 (b) 6 units at a loss Rs. 92 (c) zero units at a loss of Rs. 80 (d) 8 units at a profit of Rs. 9 139. Refer to the competitive firm in Table 1. If the market price is Rs 31, the firm will produce: (a) 9 units at an economic profit of Rs. 40 (b) 10 units at an economic profit of Rs. 67 (c) 9 units at an economic profit of Rs. 81 (d) Zero units of output and lose its fixed cost 140. In Table 1, if price is Rs 26, the perfectly competitive firm will: (a) shut down in the short run (b) produce 8 units at an economic loss of Rs. 9 (c) produce 9 units at an economic loss of Rs. 5 (d) produce 8 units at an economic loss of Rs. 1.04 Common Proficiency Test (CPT) Volume - I 105 © The Institute of Chartered Accountants of India MODEL TEST PAPER - 4 141. In Table 1, if price is Rs 34, the perfectly competitive firm will: (a) shut down (b) produce 10 units (c) produce 11 units (d) produce 13 units. Read the following paragraph and answer Questions number 142-147 Anisha quit her job at a private company where she earned Rs. 2,90,000 a year. She withdrew Rs. 4,00,000 in a savings account that earned 10% interest annually to buy a second hand mini bus to commune passenger between Cannaught Place and Noida. There are 1000 passengers who will pay Rs. 4000 a year each for commuter services; Rs. 2800 from each passenger goes for petrol, maintenance, depreciation etc. 142. What is Anisha’s total revenue from her commuter service? (a) Rs. 40,00,000 (b) Rs.2, 90,000 (c) Rs. 28, 00,000 (d) Rs 31,30,000 143. Calculate Anisha’s accounting costs? (a) Rs. 12, 00,000 (b) Rs. 40,00,000 (c) Rs. 28, 00,000 (d) Rs. 8,70,000 144. Calculate Anisha’s economic cost? (a) Rs. 3,30,000 (b) Rs. 40,000 (c) Rs.28,00,000 (d) Rs. 31,30,000 145. We can say that Anisha: (a) earned economic profits but suffered accounting loss (b) earned economic profits and accounting profits (c) suffered economic loss and accounting loss (d) earned accounting profits but suffered economic loss 146. Calculate Anisha’s accounting profit/ loss? (a) Rs. 40,00,000 (b) Rs. 12,00,000 (c) Rs. 8,70,000 (d) Rs. 2,90,000 147. Calculate Anisha’s economic profit/loss? (a) Rs. 12,00,000 (b) Rs. 30,000 (c) Rs. 31,30,000 (d) Rs. 8,70,000 148. If the local pizzeria raises the price of a medium pizza from Rs.60 to Rs.100 and quantity demanded falls from 700 pizzas a night to 100 pizzas a night, the price elasticity of demand for pizzas is: (a) .67 (b) 1.5 (c) 2.0 (d) 3.0 106 Common Proficiency Test (CPT) Volume - I © The Institute of Chartered Accountants of India 149. Suppose a consumer’s income increases from Rs.30,000 to Rs.36,000. As a result, the consumer increases her purchases of compact discs (CDs) from 25 CDs to 30 CDs. What is the consumer’s income elasticity of demand for CDs? (a) 0.5 (b) 1.0 (c) 1.5 (d) 2.0 150. If the quantity demanded of beef increases by 5% when the price of chicken increases by 20%, the cross-price elasticity of demand between beef and chicken is (a) -0.25 (b) 0.25 (c) -4 (d) 4 SECTION – D : QUANTITATIVE APTITUDE (50 MARKS) 151. The entire upper part of a table is known as (a) Caption (b) Stub (c) Box head (d) Body 152. Ogive is a (a) Line diagram (b) Bar diagram (c) Both (d) None 153. In case of an even number of observations which of the following is median? (a) Any of the two middle-most value (b) The simple average of these two middle values (c) The weighted average of these two middle values (d) Any of these 154. If the A.M. and G.M. for two numbers are 6.50 and 6 respectively then the two numbers are (a) 6 and 7 (b) 9 and 4 (c) 10 and 3 (d) 8 and 5 155. If all the observations are increased by 10, then (a) Standard Deviation would be increased by 10 (b) Mean deviation would be increased by 10 (c) Quartile deviation would be increased by 10 (d) All these three remain unchanged 156. Mode of 0, 3, 5, 6, 7, 9, 12, 0, 2 is (a) 6 (b) 0 (c) 3 (d) 5 Common Proficiency Test (CPT) Volume - I 107 © The Institute of Chartered Accountants of India MODEL TEST PAPER - 4 157. What is spurious correlation? (a) It is a bad relation between two variables (b) It is very low correlation between two variables (c) It is the correlation between two variables having no causal relation (d) It is a negative correlation 158. The line x = a + by represents the regression equation of (a) y on x (b) x on y (c) Both of above (d) None of above 159. When ‘p’ = 0.5, the binomial distribution is (a) Asymmetrical (b) Symmetrical. (c) Both of above. (d) None of above. 160. A population comprises 5 members. The number of all possible samples of size 2 that can be drawn from it with replacement is (a) 100 (b) 15 (c) 125 (d) 25 161. Tally marks determines ______ . (a) Class width (b) Class boundary (c) Class limit (d) Class frequency 162. ______ always lies in between the arithmetic mean & mode. (a) G.M. (b) H.M. (c) Median (d) G.M. and H.M. 163. In case ‘The ages of husbands and wives’ correlation is ______ . (a) Positive (b) Negative (c) Zero (d) One 164. If P(A∩∩∩∩∩B) = 0, then the two events A and B are ______ . (a) Mutually exclusive (b) Exhaustive (c) Equally likely (d) Independent 165. In ______ distribution, mean = variance. (a) Normal (b) Binomial (c) Poisson (d) None of above 166. A______ distribution is a theoretical distribution that expresses the functional relation between each of the distinct values of the sample statistic and the corresponding probability. (a) Normal (b) Binomial (c) Poisson (d) Sampling 108 Common Proficiency Test (CPT) Volume - I © The Institute of Chartered Accountants of India 167. If an investment of Rs.1000 and Rs.100 yield an income of Rs.90 and Rs.20 respectively, for earning Rs.50 investment of Rs.________ will be required. (a) Less than Rs.500 (b) Over Rs.500 (c) Rs.485 (d) Rs.486 168. If 18C = 18C then the value of n is ________ . n n+2 (a) 0 (b) –2 (c) 8 (d) None of above 169. The sum of square of first n natural number is ________. (a) (n/2) (n+1) (b) (n/6) (n+1) (2n+1) (c) [(n/2) (n+1)]2 (d) None of above 170. If b2 – 4ac = 0 the roots are ______ and ______. (a) Real, Unequal (b) Real, Equal (c) Irrational, Unequal (d) Rational, Unequal 171. The index number of prices at a place in 1998 is 355 with 1991 as base. This means (a) There has been on the average a 255% increase in prices (b) There has been on the average a 355% increase in price (c) There has been on the average a 250% increase in price (d) None of these 172. The sum of a series in A.P. is 72 the first term being 17 and the common difference –2. The number of terms is (a) 6 (b) 12 (c) 6 or 12 (d) 10 173. The mean proportional between 1.4 gms and 5.6 gms is (a) 28 gms. (b) 2.8 gms. (c) 3.2 gms. (d) None of these 174. Which is True ? ( ) ( ) 1 ° 1 ° (a) 2° > (b) 2° < 2 2 ( ) 1 ° (c) 2° = (d) None of these 2 Common Proficiency Test (CPT) Volume - I 109 © The Institute of Chartered Accountants of India MODEL TEST PAPER - 4 175. 8 is the solution of the equation x+4 x–5 x+4 x+10 (a) + =11 (b) + =8 4 3 2 9 x+24 x x–15 x+5 (c) =4+ (d) + =4 5 4 10 5 176. The sum of the digits of a two digit number is 10. If 18 be subtracted from it the digits in the resulting number will be equal. The number is (a) 37 (b) 73 (c) 64 (d) None of these 177. The values of x for the equation x2+ 9x + 18 = 6 – 4x are (a) (1,12) (b) (–1,–12) (c) (1,–12) (d) (–1,12) 178. The effective rate of interest corresponding a nominal rate of 7% p.a convertible quarterly is (a) 7% (b) 7.5% (c) 7.10% (d) None of these 179. A person bought a house paying Rs. 20000 cash down and Rs. 4000 at the end of each year for 25 yrs at 5% p.a. compound interest. The cash down price is (a) Rs. 75,000 (b) Rs. 76,000 (c) Rs. 76,392 (d) None of these 180. The ways of selecting 4 letters from the word EXAMINATION is (a) 136 (b) 130 (c) 125 (d) None of these 181. If there are 50 stations on a railway line how many different kinds of single first class tickets may be printed to enable a passenger to travel from one statin to other? (a) 2500 (b) 2450 (c) 2400 (d) None of these 182. The sum of 3 numbers of a G.P. is 39 and their product is 729. The numbers are (a) 3, 27, 9 (b) 9, 3, 27 (c) 3, 9, 27 (d) None of these 183. Find the four numbers in A.P. with the sum of second and third being 22 and the product of the first and fourth being 85. (a) 3, 5, 7, 9 (b) 2, 4, 6, 8 (c) 5 ,9, 13, 17 (d) None of these 110 Common Proficiency Test (CPT) Volume - I © The Institute of Chartered Accountants of India 184. The sum of n terms of the series 2 + 6 + 10 + ……. is (a) 2n² (b) n² (c) n²/2 (d) 4n² 185. If A has 32 elements, B has 42 elements and A∪∪∪∪∪B has 62 elements, the number of elements in A∩∩∩∩∩B is (a) 12 (b) 74 (c) 10 (d) None of these x2 –1 lim 186. is evaluated to be x→1 3x+1– 5x-1 (a) 4 (b) 1/4 (c) –4 (d) None of these x3 –t3 187. lim is evaluated to be x→t x2 –t2 (a) 3/2 (b) 2/3t ⎛3⎞ ⎜ ⎟ (c) t (d) None of these ⎝2⎠ 188. If f(x) = eax 2 +bx+c the f ’(x) is (a) eax 2+bx+c (b) eax 2+bx+c(2ax + b) (c) 2ax +b (d) None of these dy 189. If y =e 2x, is calculated as dx e 2x (a) (b) e 2x 2x e 2x (c) (d) None of these 2x ( ) 190. Evaluate result of ∫ x2 –1 2 dx is (a) x5/5 – 2/3 x3 + x + k (b) x5/5 – 2/3 x3 + x (c) 2x (d) None of these Common Proficiency Test (CPT) Volume - I 111 © The Institute of Chartered Accountants of India MODEL TEST PAPER - 4 4 ∫( 2x+5 ) 191. Evaluate dx and the value is 1 (a) 3 (b) 10 (c) 30 (d) None of these 192. The following data relate to the marks of a group of students: Marks : Below 10 Below 20 Below 30 Below 40 Below 50 No. of students: 15 38 65 84 100 How many students got marks more than 30? (a) 65 (b) 50 (c) 35 (d) 43 193. The harmonic mean for the numbers 2, 3, 5 is (a) 2.00 (b) 3.33 (c) 2.90 (d) –330 194. The coefficient of mean deviation about mean for the first 9 natural numbers is (a) 200/9 (b) 80 (c) 400/9 (d) 50 195. Maximum value of Rank Correlation coefficient is (a) –1 (b) +1 (c) 0 (d) None of these 196. If two letters are taken at random from the word HOME, what is the Probability that none of the letters would be vowels? (a) 1/6 (b) 1/2 (c) 1/3 (d) 1/4 197. The chance of getting a sum of 6 in a single throw with two dice is (a) 3/36 (b) 4/36 (c) 6/36 (d) 5/36 198. What is the number of trials of a binomial distribution having mean and Standard Deviation as 3 and 1.5 respectively? (a) 2 (b) 4 (c) 8 (d) 12 112 Common Proficiency Test (CPT) Volume - I © The Institute of Chartered Accountants of India 199. If the price of all commodities in a place has increased 125 times in comparison to the base period prices, then the index number of prices for the place is now (a) 100 (b) 125 (c) 225 (d) None of the above. 200. If the amount of an annuity for 25 years at 5% p.a. C.I. is Rs. 50,000 the annuity will be (a) Rs. 1,406.90 (b) Rs. 1,046.90 (c) Rs. 1,146.90 (d) None of these. (cid:2)(cid:2)(cid:2) Common Proficiency Test (CPT) Volume - I 113 © 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 – 5 Time : 4 hours Maximum Marks : 200 The test is divided into four sections. Every correct answer carries + 1 mark each and – 0.25 mark will be deducted for each wrong answer. SECTION – A : FUNDAMENTALS OF ACCOUNTING (60 MARKS) 1. Drawings account is in the nature of (a) Personal account (b) Real account (c) Nominal account (d) None of the above 2. Income tax paid by the sole-proprietor from business bank account is debited to (a) Income tax account (b) Bank account (c) Capital account (d) Not to be shown in the business books 3. Following is the example of internal users: (a) Government (b) Investors (c) Creditors (d) Employees 4. Recording of a transaction in a journal is called (a) Posting. (b) Entry. (c) Transfer (d) Ruling 5. Narrations are given at the end of (a) Final accounts (b) Trial balance (c) Each ledger account (d) Each journal entry Common Proficiency Test (CPT) Volume - I 115 © The Institute of Chartered Accountants of India MODEL TEST PAPER - 5 6. The concerned account debited in the journal should be (a) Debited in the ledger but reference should be of the respective credit account. (b) Credited in the ledger but reference should be of the respective debit account. (c) Credited in the ledger and reference should also be of the respective credit account (d) Debited in the ledger and reference should also be of the respective debit account 7. The basic consideration(s) in distinction between capital and revenue expenditures is/are (a) Nature of business (b) Effect on revenue generating capacity of business (c) Purpose of expenses (d) All of the above 8. Unintentional omission or commission of amounts and accounts in the process of recording transactions are known as (a) Frauds (b) Misinterpretation (c) Errors (d) None of the above 9. “Treating a revenue expense as a capital expenditure” is an example of (a) Compensating error (b) Error of principle (c) Error of omission (d) Error of commission 10. Under bank reconciliation statement, while adjusting the cash book (a) All the errors and omissions in the cashbook are taken into consideration (b) All the errors and omissions in the passbook are taken into consideration (c) Delays in recording in the passbook due to difference in timing are taken into consideration (d) All of the above 11. In ledger, there are _______ columns (a) 4 (b) 6 (c) 8 (d) 10 12. In journal, transactions are recorded on __________. (a) Chronological order (b) Ascending order of amount (c) Descending order of amount (d) None of the above 13. If an effect of an error is cancelled by the effect of some other error, it is commonly known as ___________ (a) Errors of principle (b) Compensating errors (c) Errors of omission (d) Errors of commission 14. When opening stock is overstated, net income for the accounting period will be __________. (a) Overstated (b) Not be affected (c) Understated (d) None of the above 116 Common Proficiency Test (CPT) Volume - I © The Institute of Chartered Accountants of India 15. Inventories should be generally valued at lower of cost or ________ (a) Fair market value (b) Replacement value (c) Present value (d) Net realisable value 16. Memorandum Joint venture account is a ________ (a) Personal account (b) Real account (c) Nominal account (d) None of the above 17. At the time of admission of a new partner, if the value of goodwill is shown in the books, it is written back by ________ (a) Old partners in old profit/loss sharing ratio (b) All the partners including the new partner in new profit/loss sharing ratio (c) Old partners in sacrificing ratio (d) New partner in gaining ratio 18. Commission provided by the consignor to the consignee to promote credit sale is known as _____________ (a) Ordinary commission (b) Del-credere commission (c) Over riding commission (d) Special commission 19. _________ is unavoidable and should be spread over the entire consignment while valuing consignment stock. (a) Abnormal loss (b) Normal loss (c) Extra-ordinary loss (d) None of the three 20. Generally, when the size of the venture is ________, the co-venturers keep separate set of books of account for the joint venture. (a) Small (b) Medium (c) Big (d) All of the above 21. Mohit, 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. 20,000. Therefore, he approaches Rohit on 20th March 2010 for extension of bill for further 3 months. Rohit agrees to extend the credit period by drawing a new bill for Rs. 20,500 together with interest of Rs. 1,000 in cash. In this case, old bill of Rs. 20,000 will be considered as (a) Discounted (b) Dishonoured (c) Cancelled (d) Retired Common Proficiency Test (CPT) Volume - I 117 © The Institute of Chartered Accountants of India MODEL TEST PAPER - 5 22. Sujal consigned goods costing Rs. 2,50,000 to Mridul on 1st January 2010 by incurring Rs. 20,000 on freight. Some goods were lost in transit. For remaining goods Mridul spend Rs. 15,000 to take the delivery including storage charges. During the quarter, Mridul sold 3/4 of the goods received by him for Rs. 3,00,000 and charged commission @10% on it to Sujal. At the end of the quarter, Sujal asked the details of goods lost, sold, expenses commission and balance due to him alongwith the consignment stock from Mridul. As desired, Mridul sent the periodical detail statement commonly known as (a) Account statement (b) Account sales (c) Statement of affairs (d) Summary statement 23. The following information pertains to X Ltd. Equity share capital called up Rs.5,00,000 Calls in arrear Rs. 40,000 Calls in advance Rs. 25,000 Proposed dividend 15% The amount of dividend payable = ? (a) Rs. 75,000 (b) Rs. 72,750 (c) Rs. 71,250 (d) Rs. 69,000 24. E Ltd. had allotted 10,000 shares to the applicants of 14,000 shares on pro rata basis. The amount payable on application is Rs.2. F applied for 420 shares. The number of shares allotted and the amount carried forward for adjustment against allotment money due from F = ? (a) 60 shares; Rs. 120 (b) 340 shares; Rs. 160 (c) 320 shares; Rs. 200 (d) 300 shares; Rs. 240 25. X of Kolkata sent out 2,000 boxes costing 100 each with the instruction that sales are to be made at cost + 45%. X draws a bill on Y for an amount equivalent to 60% of sales value. The amount of bill will be (a) Rs. 1,74,000 (b) Rs. 2,00,000 (c) Rs. 2,90,000 (d) Rs. 1,20,000 26. A purchase of Rs. 1,870 by cheques has been wrongly posted in the cashbook as Rs. 1,780. This has the effect of (a) Increasing the bank balance by Rs.90 (b) Decreasing the bank balance by Rs.90 (c) Increasing the bank balance by Rs.180 (d) Decreasing the bank balance by Rs.180 118 Common Proficiency Test (CPT) Volume - I © The Institute of Chartered Accountants of India 27. M/s Delhi Stationers purchase 1,000 pcs of cover file @ Rs. 275 per 100 pcs. The wholesaler charged 5% sales tax on cost price. Transport charges were Rs. 50. The purchase price per piece of cover file will be (a) Rs. 2,937.50 (b) Rs. 293.75 (c) Rs. 29.375 (d) Rs. 2.9375 28. A consignee sold goods costing Rs. 50,000 at a profit of Rs. 10,000. Out of total sales, 30% was credit sale. As per the agreement the consignee will get 5% ordinary commission, 2% del-credere commission on credit sale and 3% over-riding commission on amount in excess of cost price. The amount of commission will be (a) Rs. 3,360 (b) Rs. 3,660 (c) Rs. 4,500 (d) Rs. 3,000 29. In a Joint venture between A and B, A, on purchase of goods, spend Rs.2,000 on freight, Rs.1,000 as godown rent, and also raised a loan from bank of Rs.50,000 at 18% p.a. repayable after 1 month. B spend Rs. 5,000 as selling expenses and he also raised a loan from bank of Rs.1,50,000 at 18% repayable after 2 months. The total expenses of Joint venture other than purchases will be (a) Rs. 8,000 (b) Rs. 8,250 (c) Rs. 5,250 (d) Rs. 13,250 30. The bill of Rs. 10,000 accepted by Ritesh on 1 July 2009, was discounted by Hitesh on 15 July 2009 for Rs. 9,600. On 4th October 2009, the bill was dishonoured and bank notified it for Rs. 200. The amount to be received from Ritesh would be (a) Rs. 10,600 (b) Rs. 10,000 (c) Rs. 10,200 (d) Rs. 10,400 31. Y Ltd. sends out its goods Rs. 1,20,000 to one of its dealer on Sale or Return basis. On 31st March he received an approval letter for goods of Rs. 80,000. Y Ltd. charge 25% profit on cost. The cost price of the unapproved goods with the dealer will be (a) Rs. 32,000 (b) Rs. 40,000 (c) Rs. 80,000 (d) Rs. 64,000 32. A, B and C are in partnership with no partnership deed. A brought Rs.80,000, B Rs.60,000 and C Rs.40,000 as capital. A does not take part in day to day activities, B acts as general manger and C acts as a sales manager. The profit during the year was Rs. 1,50,000. The share of each partner in profit will respectively be (a) Rs.66,667: Rs.50,000: Rs.33,333 (b) Rs.50,000: Rs.50,000: Rs.50,000 (c) Nil: Rs. 75,000: Rs.75,000 (d) None of the above Common Proficiency Test (CPT) Volume - I 119 © The Institute of Chartered Accountants of India MODEL TEST PAPER - 5 33. A second hand car is purchased for Rs. 2,00,000, the amount of Rs. 25,000 is spent on its repairs, Rs. 5,000 is incurred to get the car registered in owner’s name and Rs. 2,000 is paid as dealer’s commission. The amount debited to car account will be (a) Rs. 2,32,000 (b) Rs. 2,25,000 (c) Rs. 2,30,000 (d) Rs. 2,05,000 34. Atul, Vipul and Prafful are partners in a firm with no partnership agreement. They invested Rs.1,00,000, Rs.75,000 and Rs.50,000 as capital in the firm. The profit for the year was Rs.2,50,000. Prafful demands interest on loan of Rs.20,000 advanced by him at the market rate of interest which is 12% p.a. The amount of interest to be received by him will be (a) Rs. 2,400 (b) Nil (c) Rs. 1,200 (d) Rs. 3,600 35. In a joint venture between Ansh and Vansh, Ansh purchased goods costing Rs.2,40,000. Vansh sold goods costing Rs 1,60,000 at Rs 2,40,000. Balance goods were taken over by Ansh at same gross profit percentage as in case of sale. The amount of goods taken over will be: (a) Rs. 1,20,000 (b) Rs. 80,000 (c) Rs. 40,000 (d) Rs. 1,00,000 36. Brave Ltd. issued 60,000 shares of Rs. 10 each at a discount of Re. 1 per share. The application money was Rs. 2, allotment money was Rs. 4, and first call was of Re.1. The amount of final call will be (a) Rs. 3 (b) Rs. 2 (c) Re.1 (d) Nil 37. A partnership firm maintains its accounts on calendar year basis. B, one of its partner died on 31st March 2010. The profit for the year 2009 was Rs. 75,000, which was distributed among all the three partners equally. The share of profit of B for the year 2010 on the basis of the year 2009 will be (a) Rs.18,750 (b) Rs.25,000 (c) Nil (d) Rs.6,250 38. Asha Ltd. issued shares of Rs. 100 each at a premium of 25%. Mamta, who has 2,000 shares of Asha Ltd., failed to pay first and final call of Rs.5. Premium was taken by Asha Ltd. at the time of allotment. On forfeiture of Mamta’s shares, the amount to be debited to Share premium account will be (a) Rs.5,000 (b) Rs.10,000 (c) Rs.15,000 (d) Nil 39. As per Section 37 of the Indian Partnership Act, 1932, the executors would be entitled at their choice to the interest calculated from the date of death of a partner till the date of payment on the final amount due to the dead partner at ________ percent per annum. (a) 7 (b) 4 (c) 6 (d) 12 120 Common Proficiency Test (CPT) Volume - I © The Institute of Chartered Accountants of India 40. Fena sent out certain goods to Kena of Delhi. 1/10 of the goods were lost in transit. Invoice value of goods lost Rs 25,000. Invoice value of goods sent out on consignment will be: (a) Rs.2,50,000 (b) Rs.25,000 (c) Rs.2,500 (d) Rs.1,25,000 41. Taksh Ltd. purchased land and building from Daksh Ltd. for a book value of Rs.5,00,000. The consideration was paid by issue of 10% Debentures of Rs.100 each at a discount of 20%. The debentures account will be credited with (a) Rs.6,00,000 (b) Rs.6,25,000 (c) Rs.5,00,000 (d) Rs.5,50,000 42. Jadu Ltd. reissued 2,000 shares, which were forfeited by crediting Share forfeiture account by Rs.3,000. These shares were reissued Rs. 9 per share. The amount to be transferred to Capital Reserve account will be (a) Rs.3,000 (b) Rs.2,000 (c) Rs.1,000 (d) Nil 43. A machine purchased on 1st April 2004 for Rs. 10,000 is showing a balance of Rs. 6,000 as on 1st April 2006 when depreciation is charged on S.L.M. basis. Now, company wants to switch over to W.D.V method charging depreciation @ 20%. The amount of excess/short depreciation of last two years will be (a) Excess depreciation Rs.400 (b) Short depreciation Rs.400 (c) Excess depreciation Rs.1,600 (d) Short depreciation Rs.1,600 44. Sundry debtors of M/s Santosh amounts to Rs. 25,000 and bad debts Rs.3,000. M/s Santosh provides for Doubtful debts @ 2% and for discount @ 1%. The amount of net debtors to be shown in the Balance Sheet will be (a) Rs. 21,560 (b) Rs. 22,000 (c) Rs. 21,780 (d) Rs. 21,344 45. A, B and C shares profit and loss in the ratio of 4:4:2. They have a joint life insurance policy of Rs.1,00,000, whose premium is paid by the firm. Surrender value of the policy at the beginning of the year 2010 is Rs. 80,000. On the death of A on 2nd January 2010, the amount to be credited in C’s account will be (a) Rs. 40,000 (b) Rs. 20,000 (c) Rs. 16,000 (d) Nil Common Proficiency Test (CPT) Volume - I 121 © The Institute of Chartered Accountants of India MODEL TEST PAPER - 5 46. X, Y and Z are equal partners in a firm. At the time of division of profit for the year there was dispute between the partners. Profits before salary of partners’ capital was Rs. 60,000 and Y claimed salary for his extra services to the firm @ 2,000 p.m. There was no agreement on this point. Calculate the amount payable to X, Y and Z respectively. (a) Rs. 20,000 to each partner (b) Rs. 12,000 to each partner (c) Rs.12,000 to X and Z and Rs.36,000 to Y (d) Rs. 24,000 to Y and Rs.18,000 to X and Z 47. Deepak consigned 100 sets of TVs to Sudeep @ Rs.10,000 each. 5 TVs were damaged in transit due to unavoidable reason whose price was adjusted in the remaining TVs. The new price of each TV will be (a) Rs. 10,000 (b) Rs. 10,200 (c) Rs. 15,000 (d) Rs. 10,526 48. A draws a bill on B for Rs 30,000 for mutual accommodation. A discounted that bill for Rs.28,000 from bank and remitted Rs.14,000 to B. On due date A will send to B (a) Rs. 14,000 (b) Rs.14,500 (c) Rs.15,000 (d) Rs.15,500 49. A and B enter into a joint venture for purchase and sale of Type-writer. A purchased Typewriter costing Rs 1,00,000. Repairing expenses Rs 10,000, printing expenses Rs 10,000. B sold it at 20% margin on selling price. The sales value will be: (a) Rs. 1,25,000 (b) Rs. 1,50,000 (c) Rs. 1,00,000 (d) Rs. 1,40,000 50. Sure Ltd. issued 5,000, 15% Debentures of Rs.100 each at a premium of Rs.10 each. These debentures were to be redeemed at a premium of Rs.4 each after 5 years. The amount to be credited to the debenture premium account will be (a) Rs.25,000 (b) Rs.50,000 (c) Rs.40,000 (d) Rs.60,000 51. Light Ltd. has 10,000 5% preference shares of Rs. 10 each to be redeemed after 5 years. The company forfeited 500 preference shares on which final call of Rs 2 has not been received after due notice, and cancelled these shares on account of redemption. Remaining shares were redeemed out of reserves of the company. The amount to be credited to capital redemption reserve will be (a) Rs.1,00,000 (b) Rs. 95,000 (c) Rs. 99,000 (d) Rs. 99,500 122 Common Proficiency Test (CPT) Volume - I © The Institute of Chartered Accountants of India 52. Bajaj Ltd. issued 25,000 equity shares of Rs. 10 each payable at Rs. 2 on application, Rs 3 on allotment, Rs. 2 on first call and the balance in the final call. Archit, who has 1,000 shares paid full value of shares with allotment money. The amount to be debited to bank account at the time of receipt of first call money will be (a) Rs.50,000 (b) Rs.47,000 (c) Rs.49,000 (d) Rs.48,000 53. Books of Ekta, shows on 1st January 2010 furniture Rs. 20,000. During the year a part of the furniture whose book value on 1st January 2010 is Rs. 1,200 has been exchanged with another furniture by paying additional Rs. 500. Ekta charge depreciation @ 10% p.a. The net amount of the furniture to be shown in the balance sheet will be (a) Rs 18,508 (b) Rs 20,440 (c) Rs 18,396 (d) Rs 18,478 54. In the bank reconciliation statement, when balance as per the cashbook is taken as the starting point, then direct deposits from the customer of Rs. 2,500 in the bank will be (a) Added (b) Subtracted (c) Ignored (d) None of the above 55. Debit balance as per Cash Book of Topsy Enterprise as on 31.3.2010 is Rs. 1,500. Cheques deposited but not cleared amounts to Rs. 100 and Cheques issued but not presented of Rs. 150. The bank allowed interest amounting Rs. 50 and collected dividend Rs. 50 on behalf of Topsy Enterprise. After reconciliation, balance as per pass book should be (a) Rs. 1,600 (b) Rs. 1,450 (c) Rs. 1,650 (d) Rs. 1,850 56. If a sales return of Rs.1,500 has been wrongly posted to the credit of the purchase returns account, but has been correctly entered in the debtors’ account, the total of the (a) trial balance would show the debit side to be Rs.3,000 more than the credit (b) trial balance would show the credit side to be Rs.3,000 more than the debit (c) the debit side of the trial balance will be Rs.1,500 more than the credit side (d) the credit side of the trial balance will be Rs.1,500 more than the debit side 57. The total cost of goods available for sale with a company during the current year is Rs.12,00,000 and the total sales during the period are Rs.13,00,000. If the gross profit margin of the company is 33 1/3% on cost, the closing inventory during the current year is (a) Rs. 4,00,000 (b) Rs. 3,00,000 (c) Rs. 2,25,000 (d) Rs. 2,60,000 Common Proficiency Test (CPT) Volume - I 123 © The Institute of Chartered Accountants of India MODEL TEST PAPER - 5 58. On 31st March 2009, Suraj has to pay to M/s Chandra Rs.7,000 on account of credit purchase from the later. He paid Rs.1,800 on 30th June 2009 after availing a cash discount of 10%. On 30th September 2009, he paid Rs. 2,850 after availing 5% cash discount. On account of final settlement, the amount to be paid by Suraj without any discount will be (a) Rs. 2,350 (b) Rs. 2,000 (c) Rs. 2,200 (d) Rs. 2,150 59. The profit of the M/s ABC, a partnership firm before charging managerial commission is Rs. 44,000. The managerial commission is charged @ 10% on profit after charging such commission. The amount of managerial commission will be (a) Rs.4,400 (b) Rs.40,000 (c) Rs.4,000 (d) Rs.39,600 60. A bad debt recovered during the year is a (a) Capital expenditures (b) Revenue expenditures (c) Capital receipt (d) Revenue receipt SECTION – B : MERCANTILE LAWS (40 MARKS) 61. The following conditions must exist so that a promise to pay for the past voluntary services is binding: (a) The services should have been rendered voluntarily (b) The services must have been rendered for the promisor (c) They must be in existence at the time when the services were rendered and must have intended to compensate the promise (d) All of the above 62. In case of a firm carrying on the business of banking (a) There should be at least seven members and maximum number of members should not exceed fifty. (b) There should be at least two members and maximum number of members should not exceed ten. (c) There should be at least ten members and maximum number of members should not exceed twenty. (d) There should be at least two members and maximum number of members should not exceed fifty. 63. Champerty means (a) An agreement to trade with the enemy owing allegiance to a government at war with India. (b) An agreement whereby a person promises to maintain a suit, by money or otherwise, in which he has no interest. (c) An agreement whereby a person agrees to help another in a litigation in exchange of a share of the result of the litigation. (d) An agreement to stifle criminal prosecutions tend to be a perversion or an abuse of justice. 124 Common Proficiency Test (CPT) Volume - I © The Institute of Chartered Accountants of India 64. A collateral event is an event (a) The performance for which is neither directly promised nor it is the entire consideration for the promise (b) The performance for which is directly promised (c) It is the entire consideration for the promise (d) The performance which is agreed upon by the parties in a Court of Law 65. A person who has been induced to enter into a contract by misrepresentation has the following remedies: (a) Affirm the contract and insist on the misrepresentation being made good, if possible (b) Rescind the contract (c) Rely upon the misrepresentation as a defence to an action on the contract (d) All of the above 66. The rights of a principal are the following: (a) Right to recover damages (b) Right to obtain an account of secret profits and recover them and resist a claim for remuneration (c) Right to resist agent’s claim for indemnity against incurred liability (d) All of the above 67. Following conditions are implied in a contract of sale of goods unless the circumstances of the contract show a different intention: (a) Condition as to non – existence of encumbrances (b) Condition as to undisturbed possession (c) All of the above (d) None of the above 68. A person to whom money has been paid, or anything delivered by mistake (a) Becomes the owner of such money or those goods (b) Must repay the money or return those goods (c) Is allowed to sell the goods and retain the money realized from such sale (d) Has no obligation to return the money, he may do so only a good gesture 69. Which one of the offers is a valid offer? (a) A garment store gave the following advertisement in a newspaper – “Special sale for tomorrow only. Men’s night suits reduced from Rs.200 to Rs.100” (b) P says to Q, “I will sell you a digital camera.” P owns three different types of digital cameras of various prices (c) An auctioneer displays a refrigerator before a gathering in an auction sale (d) A advertises in a leading daily newspaper that he would pay Rs. 2000 to anyone who finds and returns his lost dog Common Proficiency Test (CPT) Volume - I 125 © The Institute of Chartered Accountants of India MODEL TEST PAPER - 5 70. A promises to paint a picture for B at a certain price. Which of the following is not correct? (a) A is not bound to perform the promise himself (b) A can appoint some other painter to paint the picture on his behalf (c) A dies before painting the picture, the contract can be enforced either by representatives of A or by B (d) All of the above are incorrect 71. An agreement of partnership may be (a) Expressed or implied from the act done by partners (b) Oral or in writing (c) Both of the above (d) None of the above 72. Dissolution of a firm may take place (a) By the adjudication of all the partners or of all the partners but one as insolvent (b) As a result of any agreement between all the partners (c) By the business of the firm becoming unlawful (d) All of the above 73. In case of a sale the buyer (a) Can pass a goods title to a bonafide purchaser (b) Cannot pass a goods title to a bonafide purchaser (c) Both of the above (d) None of the above 74. The following persons can enter into contracts as per the provisions of the Indian Contract Act, 1872: (a) Alien Enemy (b) Foreign Sovereigns or accredited representatives of a foreign state (c) Insolvents and convicts (d) None of the above 75. Which of the following is correct? (a) Free consent is not important, if consideration is preset, even if the consideration is inadequate (b) Anticipatory breach and anticipatory bail are actually the same thing (c) The concept of damage allows one to make some gain out of it (d) All of the above are incorrect 76. Remedies available for breach of contract are: (a) Dissolution of the firm (b) Charging extra fees from the party committing the breach (c) Suit for Specific Performance (d) None of the above 126 Common Proficiency Test (CPT) Volume - I © The Institute of Chartered Accountants of India 77. A person to whom money has been paid, or anything delivered under coercion (a) Becomes the owner of such money or those goods (b) Is allowed to sell the goods and retain the money realized from such sale (c) Has no obligation to return the money, he may do so only a good gesture (d) Must repay the money or return those goods 78. Which of the following case laws relate to the definition of contract of sale? (a) Rajlikhee Devi v. Bhoot Nath, 1900 (b) State of Madras v. Gannon Dunkerly and Co. Limited, 1958 (c) Khawaja Md. Khan v. Hussaini Begum, 1910 (d) Suppu Ammal v. Subramanian, 1910 79. A sale implies an agreement (a) Plus conveyance of property and creates jus in personam (b) Plus conveyance of property and creates jus in rem (c) No conveyance of property and creates jus in rem (d) No conveyance of property and creates jus in personam 80. If the terms of a contract are expressly agreed upon (whether by words spoken or written) at the time of formation of the contract, the contract is said to be an ________. (a) Express Contracts (b) Implied Contracts (c) Quasi Contracts (d) None of the above 81. According to the Indian Contract Act, 1872, Consent is said to be free when it is not caused by ________. (a) Misrepresentation (b) Undue Influence (c) Coercion (d) All of the above 82. Where both parties to a contract of sale are under a mistake as to a matter of fact, essential to such contract, then the contract is ________. (a) Illegal (b) Void (c) Still enforceable (d) None of the above 83. In India the age of majority is regulated by ________. (a) The Indian Majority Act, 1875 (b) The Indian Minority Act, 1875 (c) The Indian Contract Act, 1872 (d) The Constitution of India 84. Agreement entered into by a minor is ________. (a) Void as against the minor (b) Illegal (c) Unlawful (d) Unenforceable by the minor Common Proficiency Test (CPT) Volume - I 127 © The Institute of Chartered Accountants of India MODEL TEST PAPER - 5 85. The Sale of Goods Act, 1930 deals with (a) Movable goods only (b) Immovable goods only (c) Both movable & immovable goods (d) All goods except ornaments 86. If the offeree offers to qualified acceptance of the offer subject to modifications and variations in the terms of original offer, he is said to have made a________. (a) Special Offer (b) Counter Offer (c) Continuing Offer (d) Cross Offer 87. Sale is an_______. (a) Executed contract (b) Executory contract (c) Both of the above (d) None of the above 88. Interest on advances by a partner to his firm may be payable _______. (a) @ 6% per annum (b) @ 8% per annum (c) @ 8.5% per annum (d) At any rate 89. The law dealing with the partnerships is contained in ________. (a) The Indian Partnership Act, 1932 (b) The Indian Partnership Act, 1930 (c) The Indian Partnership Act , 1872 (d) The Indian Partnership Act, 2006 90. Conditions and warranties ________. (a) Must be expressed (b) Must be implied if not expressed (c) May either be expressed or implied (d) None of the above 91. ‘Seller’ means a person who________. (a) Sells goods (b) Agrees to sell goods (c) Sells or agrees to sell goods (d) Has sold goods 92. Delivery of a thing in token of a transfer of something else is known as________. (a) Actual Delivery (b) Constructive Delivery (c) Delivery by acknowledgment (d) None of the above 93. A is not a minor. A agrees to B for Rs.1,00,000/- that A will never marry. Promise of A is _______. (a) Binding (b) Not binding (c) Enforceable (d) Illegal 128 Common Proficiency Test (CPT) Volume - I © The Institute of Chartered Accountants of India 94. The rule of caveat emptor does not apply in the case of_______. (a) Fitness for buyer’s purpose (b) Sale under a patent or trade name (c) Usage of trade or consent by fraud (d) All of the above 95. ________ is/are the exception(s) to the general rule, no consideration no contract. (a) Natural love and affection (b) Compensation for past voluntary services (c) Promise to pay a time barred debt (d) All of the above 96. An offer should be distinguished from________ . (a) Invitation to treat an offer (b) Mere communication of information in the course of negotiation (c) Statement of intention (d) All of the above 97. ________ is/are the ‘document of title to goods’ (a) Railway receipt or Multimodal transport document (b) Warrant or order for delivery of goods (c) Warehouse keeper’s certificate (d) All the above 98. A agrees to pay B Rs.500/- if a particular ship does not return to the port. The ship was sunk. The contract ________. (a) Can be enforced by B (b) Cannot be enforced by B (c) Is a wagering contract (d) Is unlawful, illegal and against public policy 99. D believes blue colour to be black colour, for any reason whatsoever. He has a garment shop. He sells one blue colour shirt to M, representing it to be black colour. M knows nothing about colours. M believes D and accepts the blue colour to be black colour. Later on M’s mother explains M that the colour of the shirt is actually blue and not black. It is a clear case of (a) Misrepresentation (b) Fraud (c) Unintentional fraud (d) Cheating Common Proficiency Test (CPT) Volume - I 129 © The Institute of Chartered Accountants of India MODEL TEST PAPER - 5 100. A & B are the only two partners in a firm. B was murdered by C, who wanted to become a partner of the firm, but B has raised objections to it. A now wants to take D as a partner in the said firm. D is father of C. In light of the situation answer, which of the following is correct? (a) The original partnership is dissolved (b) The original partnership is not dissolved and A & D can continue (c) A & D has to enter into a fresh agreement and create a new partnership (d) Both (a) & (c) SECTION – C : GENERAL ECONOMICS (50 MARKS) 101. In a typical demand schedule, quantity demanded: (a) varies directly with price (b) varies proportionately with price (c) varies inversely with price (d) is independent of price 102. When the perfectly competitive firm and industry are in long run equilibrium then: (a) P = MR = SAC = LAC (b) D = MR = SMC = LMC (c) P = MR = Lowest point on the LAC curve (d) All of the above 103. In monopoly, the relationship between average and marginal revenue curves is as follows: (a) AR curve lies above the MR curve (b) AR curve coincides with the MR curve (c) AR curve lies below the MR curve (d) AR curve is parallel to the MR curve 104. All of the following are U shaped curves except the: (a) AVC curve (b) AFC curve (c) AC curve (d) MC curve 105. From the national point of view which of the following indicates micro approach? (a) Per capita income of India (b) Underemployment in agricultural sector. (c) Lock out in TELCO (d) Total savings in India 106. The total effect of a price change of a commodity is (a) substitution effect plus price effect (b) substitution effect plus income effect (c) substitution effect plus demonstration effect (d) substitution effect minus income effect 130 Common Proficiency Test (CPT) Volume - I © The Institute of Chartered Accountants of India 107. Which of the following is not a part of Fiscal policy? (a) Subsidy under public distribution system (b) Control of population (c) Imposition of taxation (d) Issue of bonds by government 108. The following are some of the costs of a clothing manufacturer. State which among them will you consider as fixed cost? (a) Cost of cloth (b) Piece wages paid to workers (c) Depreciation on machines owing to time (d) Cost of electricity for running machines 109. The difference between GNP and NNP equals: (a) consumer expenditure on durable goods (b) indirect business taxes (c) a statistical discrepancy (d) depreciation 110. National income at market prices, plus subsidies, but less indirect taxes is equal to which one of the following? (a) Gross national income (b) National income at factor cost (c) Private income before cost (d) Net consumer income 111. All but one of the following statements are incorrect. Find the correct statement. (a) Balance of payments is a narrow concept than balance of trade (b) India is facing severe foreign exchange reserves crunch (c) Devaluation is panacea for BOP problem (d) The RBI is the lender of last resort for Indian public sector banks 112. Who first raised the fears of a world food shortage? (a) David Ricardo (b) T.R. Malthus (c) J.S. Mill (d) J.B. Say 113. An underdeveloped economy is generally characterized by a: (a) high ratio of commercial farming to subsistence farming (b) high ratio of industrial output to total output (c) high utilization of existing capital in the economy (d) coexistence of underutilized labour with unexploited national and other resources Common Proficiency Test (CPT) Volume - I 131 © The Institute of Chartered Accountants of India MODEL TEST PAPER - 5 114. Which institution is known as the “soft loan window” of World Bank? (a) IFC (b) IDA (c) IMF (d) Indian Development Forum 115. In order to encourage investment in the country, the RBI may: (a) decrease bank rate (b) increase CRR (c) sell securities in the open market (d) increase bank rate 116. A strategy of heavy industry is sometimes preferred for a developing economy because it can : (a) generate employment opportunity on a large scale (b) provide a strong base for rapid industrialization (c) contain inflationary pressures (d) meet the deficits in Balance of Payments in the short run 117. The branch of economic theory that deals with the problem of allocation of resources is —— ———— (a) Microeconomic theory (b) Macroeconomic theory (c) Econometrics (d) None of the above 118. Production may be defined as an act of ——————. (a) creating utility (b) earning profit (c) destroying utility (d) providing services 119. The sale of branded articles is common in a situation of ——————. (a) excess capacity (b) monopolistic competition (c) monopoly (d) pure competition 120. If GNP is 15% higher than last year’s and the rate of inflation is 7%, production in the economy has grown by ——————. (a) 8% (b) 7% (c) 15% (d) 2.1% 121. —————— concept of Budget deficit has become practically redundant in India. (a) Fiscal deficit (b) Budgetary deficit (c) Primary deficit (d) Revenue deficit 122. Demand for electricity is elastic because ——————. (a) it is very expensive (b) it has a number of close substitutes (c) it has alternative uses (d) none of the above 123. The cost that firm incurs in hiring or purchasing any factor of production is referred to as ——————. (a) explicit cost (b) implicit cost (c) variable cost (d) fixed cost 132 Common Proficiency Test (CPT) Volume - I © The Institute of Chartered Accountants of India 124. The main security guard for International Trade is ——————. (a) IMF (b) World Bank (c) WTO (d) RBI 126. —————— is the most liquid measure of money supply. (a) M (b) M 1 2 (c) M (d) M 3 4 127. Population density means ——————. (a) number of persons living per sq. km. (b) number of persons living per kilometer (c) ratio of population living below poverty line to total population (d) number of persons in a village 128. NABARD is a ——————. (a) bank (b) board (c) exchange programme for consumer goods (d) department 129. In terms of lending, priority sector constitute about —————— of total bank lending. (a) 60 (b) 44 (c) 80 (d) 30 130. The tele density in India is about —————— in March 2009. (a) 35.65 (b) 15.34 (c) 16.6 (d) 19.22 131. According to 2008 data, there are —————— Health centers existing in India. (a) about 57,353 (b) about 1,17,198 (c) about 1,71,687 (d) about 2,68,700 132. TRAI stands for——————. (a) Trade Regulatory Authority of India (b) Transport Regulatory Authority of India (c) Training Registrar Authority of India (d) Telecom Regulatory Authority of India Common Proficiency Test (CPT) Volume - I 133 © The Institute of Chartered Accountants of India MODEL TEST PAPER - 5 Questions 133 to 137 are based on the demand and supply diagrams in Figure 1. D and S 1 1 are the original demand and supply curves. D , D , S and S are possible new demand and 2 3 2 3 supply curves. Starting from initial equilibrium point (1) what point on the graph is most likely to result from each change? 133. Suppose wage rate of coal miners increases and price of natural gas decreases. (Coal and natural gas are substitutes).What point in Figure 1 is most likely to be the new equilibrium price and quantity? (a) Point 6 (b) Point 4 (c) Point 3 (d) Point 2 134. Assume that consumer income has increased. Given that Y is an inferior good, which point in Figure is most likely to be the new equilibrium price and quantity? (a) Point 4 (b) Point 6 (c) Point 5 (d) Point 8 135. Assume that the government has just removed the 10% excise duty on good X. What point in Figure 1 is most likely to be the new equilibrium price and quantity? (a) Point 6 (b) Point 4 (c) Point 7 (d) Point 8 136. A government research agency has published outcome of studies which say that the consumption of good X could cause cancer. In addition, assume that a powerful lobby has persuaded the government to give subsidy to the manufacturers of good X. What point in Figure is most likely to be the new equilibrium price and quantity? (a) Point 6 (b) Point 5 (c) Point 3 (d) Point 9 134 Common Proficiency Test (CPT) Volume - I © The Institute of Chartered Accountants of India 137. An increase in demand and an increase in supply will: (a) affect equilibrium quantity in an indeterminate way and price will decrease (b) affect price in an indeterminate way and quantity will decrease (c) affect price in an indeterminate way and quantity will increase (d) affect equilibrium quantity in an indeterminate way and price will increase Use Table 1 to answer questions 138-142 The following table provides cost and price information for an individual firm. The first two columns represent the demand curve that the firm faces. The firm has a fixed amount of capital equipment, but can change the level of other inputs such as labour and materials. Calculate the missing values in the table, and use the table to answer questions 138 to 142. (Make sure you answer each question using the production level specified.) Table 1 Production Price per Total Variable Marginal Total Marginal unit Cost Cost Cost Revenue Revenue (per unit) (per unit) (Q) (P) (TC) (VC) (MC) (TR) (MR) 0 130 45 0 – – 1 124 88 2 118 125 3 112 159 4 106 193 5 100 230 6 94 273 7 88 325 8 82 389 9 76 465 138. When production equals 4 units, the firm’s: (a) fixed cost is 100 and its variable cost is 93 (b) fixed cost is 193 and its variable cost is 0 (c) fixed cost is 0 and its variable cost is 193 (d) fixed cost is 45 and its variable cost is 148 139. When production equals 5 units, the firm’s total revenue is: (a) Rs. 100 (b) Rs. 270 (c) Rs. 324 (d) Rs. 500 140 When production equals 6 units, the firm’s marginal revenue is: (a) Rs. 384 (b) Rs. 94 (c) Rs. 64 (d) Rs. 2 Common Proficiency Test (CPT) Volume - I 135 © The Institute of Chartered Accountants of India MODEL TEST PAPER - 5 141 When production equals 7 units, the firm’s profit is: (a) Rs. 0 (b) Rs. 41.57 (c) Rs. 291 (d) Rs. 336 142 To maximize its profit, the firm should produce: (a) 0 units (b) 3 units (c) 5 units (d) 7 units Read table 2 and answer Questions number 143-149 Table 2 Production Possibilities (alternatives) A B C D E F Hot Pockets 15 12 9 6 3 0 Eggos 0 6 11 15 18 20 143. According to the production possibilities curve in Table 2, a combination of 12 Hot Pockets and 11 Eggos: (a) is attainable and it involves an efficient use of society’s resources (b) is attainable but involves the unemployment or inefficient use of some of society’s resources (c) is not attainable given society’s current resources and technology (d) may be produced only if the production possibilities curve shifts inward 144. According to the production possibilities curve in Table 2, a combination of 3 Hot Pockets and 15 Eggos: (a) is attainable and it involves an efficient use of society’s resources (b) is attainable but involves the unemployment or inefficient use of some of society’s resources (c) is not attainable given society’s current resources and technology (d) may be produced only if the production possibilities curve shifts inward 145. Referring to Table 2, in moving from point D to point C, the opportunity cost of 1 more Hot Pockets is: (a) 4 eggos (b) ¾ eggos (c) 1 eggos (d) 4/3 eggos 146. Given the data in Table 2, as one moves successively from point A to points B, C, D, E, and F the opportunity cost of eggos: (a) increases as more Eggos are produced (b) decreases as more Eggos are produced (c) remains constant as more Eggos are produced (d) cannot be measured 136 Common Proficiency Test (CPT) Volume - I © The Institute of Chartered Accountants of India 147. Given the data in Table 2, as one moves successively from point F to points E, D, C, B, and A, the opportunity cost of Hot Pockets: (a) increases as more Hot potatoes are produced (b) decreases as more Hot potatoes are produced (c) remains constant as more Hot potatoes are produced (d) cannot be measured 148. Which of the following would not cause an economy’s production possibilities curve to shift to the right? (a) The discovery of new superconductivity materials which makes manufacturing more efficient (b) A decrease in unemployment (c) Improvements in technology (d) Widespread application of irrigation to agricultural land 149. In drawing a production possibilities curve, which of the following is (are) held constant? (a) The supply of natural resources and the supply of labor. (b) Technology and the educational attainment of the work force. (c) Both (a) and (b). (d) None of the above. 150. The following table provides a breakdown of a country’s population (millions): Table 3 Total population 114 Children (below the working age) 18 Unemployed people looking for a job 9 Full-time students (not looking for a job) 2 Retired people 14 Employed people 63 People confined to correctional institutions 1 Other adults not in the labour force 7 Based on the information in the table, the country’s unemployment rate is (a) 7.9% (b) 12.5% (c) 20.2% (d) 22.2% SECTION – D : QUANTITATIVE APTITUDE (50 MARKS) 151. Which of the following measures of central tendency is based on only fifty percent of the central values? (a) Mean (b) Median (c) Mode (d) Both (a) and (b) 152. The unit of measurement in tabulation is shown in (a) Box head (b) Body (c) Caption (d) Stub Common Proficiency Test (CPT) Volume - I 137 © The Institute of Chartered Accountants of India MODEL TEST PAPER - 5 153. Most extreme values which would ever be included in a class interval are called (a) Class limits (b) Class interval (c) Class boundaries (d) None of these 154. The method applied for deriving the regression equations is known as (a) Least squares (b) Concurrent deviation (c) Product moment (d) Normal equation 155. A binomial distribution is (a) Never symmetrical (b) Never positively skewed (c) Never negatively skewed (d) Symmetrical when p = 0.5 156. If A denotes that a student reads in a school and B denotes that he plays cricket, then (a) P(A ∩ B) = 1 (b) P(A ∪ B) = 1 (c) P(A ∩ B) = 0 (d) P(A) = P(B) 157. Probability mass function is always (a) 0 (b) Greater than 0 (c) Greater than equal to 0 (d) Less than 0 158. The sampling distribution is (a) The distribution of sample observations (b) The distribution of random samples (c) The distribution of a parameter (d) The probability distribution of a statistic 159. If now the prices of all the commodities in a place have been decreased by 85% over the base period prices, then the index number of prices for the place is now (index number of prices of base period = 100) (a) 100 (b) 135 (c) 65 (d) None of these 160. The ratio between the speeds of two trains is 7: 8. If the second train runs 400 Kms. in 5 hours, the speed of the first train is (a) 10 Km/hr (b) 50 Km/hr (c) 71 Km/hr (d) None of these 161. If α , ß be the roots of the equation 2x2 – 4x – 3 = 0, the value of ∝∝∝∝∝ 2 + ß2 is ______. (a) 5 (b) 7 (c) 3 (d) – 4 162. In ______ first payment/receipt takes place at the end of first period. (a) Annuity immediate (b) Annuity regular (c) Annuity due (d) Annuity special 138 Common Proficiency Test (CPT) Volume - I © The Institute of Chartered Accountants of India 163. Difference between the maximum & minimum value of a given data is called______ . (a) Width (b) Size (c) Range (d) Class 164. ______ is used when distribution pattern has to be studied at varying levels. (a) A.M. (b) Median (c) G.M. (d) Mode 165. ______ is extremely sensitive to the size of the sample. (a) Range (b) Mean (c) Median (d) Mode 166. Under Algebraic Method we get ______ linear equations. (a) One (b) Two (c) Three (d) Five 167. If the probability of a horse A winning a race is 1/6 and the probability of a horse B winning the same race is ¼, ______ is the probability that one of the horses will win. (a) 5/12 (b) 7/12 (c) 1/12 (d) 1/7 168. ______ distribution is sometimes known as the “distribution of rare events”. (a) Poisson (b) Normal (c) Binomial (d) t 169. The Standard deviation of the ______ distribution is called standard error. (a) Normal (b) Poisson (c) Binomial (d) Sampling 170. For 5 sample values, we have ______ degree of freedom. (a) 5 (b) 3 (c) 4 (d) 6 y+11 y+1 y+7 171. Solve for y in the equation - = and the value of y is 6 9 4 (a) –1 (b) 7 1 (c) 1 (d) – 7 172. If 5Pr = 60, then the value of r is (a) 3 (b) 2 (c) 4 (d) None of these Common Proficiency Test (CPT) Volume - I 139 © The Institute of Chartered Accountants of India MODEL TEST PAPER - 5 173. A question paper contains 6 questions, each having an alternative. The number of ways an examiner can answer one or more questions is (a) 720 (b) 728 (c) 729 (d) None of these 2x2 –7x + 6 174. lim is equal to x→∞5x2 –11x + 2 (a) 1/9 (b) 9 (c) –1/9 (d) None of these dy 175. If y = x-1/2 then is dx (a) (–1/2)x-3/2 (b) (1/2)x-3/2 (c) (–1/2)x3/2 (d) None of these 176. Integrate w.r.t. (3 – 2x – x4) (a) 3x – x² – x5/5 (b) 3x + x² – x5/5 (c) 3x + x² + x5/5 (d) None of these 2 ∫ 3x2 177. dx Is 0 (a) 7 (b) –8 (c) 8 (d) None of these 178. If there are two groups containing 30 and 20 observations and having 50 and 60 as arithmetic means, then the combined arithmetic mean is (a) 55 (b) 56 (c) 54 (d) 52 179. If all the observations are multiplied by 2, then (a) New Standard Deviation would be also multiplied by 2. (b) New Standard Deviation would be half of the previous SD. (c) New Standard Deviation would be increased by 2. (d) New Standard Deviation would be decreased by 2. 180. The median of 27, 30, 26, 44, 42, 51, 37 is (a) 30 (b) 42 (c) 44 (d) 37 140 Common Proficiency Test (CPT) Volume - I © The Institute of Chartered Accountants of India 181. The minimum value of correlation coefficient is (a) 0 (b) –2 (c) 1 (d) –1 182. The two lines of regression become identical when (a) r = 1 (b) r = –1 (c) r = 0 (d) (a) or (b) 183. If an unbiased coin is tossed twice, the probability of obtaining at least one tail is (a) 0.25 (b) 0.50 (c) 0.75 (d) 1.00 184. In a single throw with two dice the probability of getting a sum of five on the two dice is (a) 1/9 (b) 5/36 (c) 5/9 (d) None of these 185. A card is drawn from each of two well-shuffled packs of cards.The probability that at least one of them is an ace is (a) 1/169 (b) 25 /169 (c) 2 /13 (d) None of these 186. In Binomial distribution if n = 4 and p = 1/3, then the value of variance is (a) 8/3 (b) 8/9 (c) 4/3 (d) None of these 187. A die was thrown 400 times and ‘six’ resulted 80 times then observed value of proportion is (a) 0.4 (b) 0.2 (c) 5 (d) None of these 188. If the prices of all commodities in a place have increased 1.25 times in comparison to the base period, the index number of prices of that place is now (a) 125 (b) 150 (c) 225 (d) None of these 189. The solution of the equation (p+2) (p–3) + (p+3) (p–4) = p (2p–5) is (a) 6 (b) 7 (c) 5 (d) None of these 190. The effective rate of interest corresponding to a nominal rate 3% p.a payable half yearly is (a) 3.2% p.a. (b) 3.25% p.a (c) 3.0225% p.a (d) None of these Common Proficiency Test (CPT) Volume - I 141 © The Institute of Chartered Accountants of India MODEL TEST PAPER - 5 191. The present value of annuity of Rs. 5000 per annum for 12 years at 4% p.a C.I. is (a) Rs. 46000 (b) Rs. 46900 (c) RS. 15000 (d) None of these 192. A person has 8 friends. The number of ways in which he may invite one or more of them to a dinner are (a) 250 (b) 255 (c) 200 (d) None of these 193. The sum of n terms of the series 2 + 6 + 10 + ……. is (a) 2n² (b) n² (c) n²/2 (d) 4n² 194. If A has 32 elements B has 42 elements and A ∪∪∪∪∪ B has 62 elements. Find the number of elements in A ∩∩∩∩∩ B? (a) 74 (b) 62 (c) 12 (d) None of these ⎛ 8x³–1 ⎞ 195. lim ⎜ ⎟ is equal to x→1/2⎝6x²–5x+1⎠ (a) 5 (b) – 6 (c) 6 (d) None of these 196. If a : b = 3 : 4, the value of (2a+3b) : (3a+4b) is (a) 18 : 25 (b) 8 : 25 (c) 17 : 24 (d) None of these 197. The value of 81/3 is (a) 3 2 (b) 4 (c) 2 (d) None of these 198. log (1 × 2 × 3) is equal to (a) log 1 + log 2 + log 3 (b) log 3 (c) log 2 (d) None of these 199. The three numbers in A.P. whose sum is 27 and the sum of their squares is 341, are (a) 2, 9, 16 (b) 16, 9, 2 (c) Both (a) and (b) (d) –2, –9, –16 142 Common Proficiency Test (CPT) Volume - I © The Institute of Chartered Accountants of India 4 ∫ 3x+4 200. is equal to 0 (a) 9/112 (b) 112/9 (c) 11/9 (d) None of these (cid:2)(cid:2)(cid:2) Common Proficiency Test (CPT) Volume - I 143 © The Institute of Chartered Accountants of India . . © The Institute of Chartered Accountants of India