Common Proficiency Test Model Paper 2

80. The essential elements of a partnership __________. (a) Must coexist before a partnership can come into existence. (b) May be brought in within a reasonable time of a partnership coming into existence. (c) May be brought in any time either during the creation of partnership or even thereafter. (d) May not coexist before a partnership can come into existence, but they must coexist within one year of a partnership coming into existence. 81. In case of bailment, __________. (a) Property in goods passes to the bailee at the time of contract. (b) Property in goods passes to the bailee upon the payment of the last installment. (c) Property in goods can pass to the bailee at any time after the contract. (d) Property in goods does not pass to the bailee and instead there is transfer of possession of goods takes place from bailor to the bailee for a specific reason. 82. There are __________ kinds of delivery. (a) Three (b) Four (c) Five (d) Two 83. The maxim ‘delegatus non potest delegare’means __________. (a) A person whom authority has been given cannot delegate the authority to another. (b) A person whom authority has been given can delegate the authority to another with prior permission. (c) A person whom authority has been given to indemnify agent for injury caused by principal’s neglect can be delegated. (d) An authority can be delegated under protest by the person to whom authority has been given. 84. A registered firm cannot claim a set off exceeding the __________ in a proceeding instituted against the firm or any partner thereof. (a) Rupees 1000/-. (b) Rupess 100/-. (c) Rupees 500/-. (d) Rupees 10,000/-. 85. In case of an agreement to sell, the ownership in the goods remains with __________. (a) The buyer. (b) The seller. (c) Both the buyer and the seller. (d) The Central Government or the State Government, as the case may be. Common Proficiency Test (CPT) Volume - I 245 © The Institute of Chartered Accountants of India MODEL TEST PAPER - 9 86. When two parties exchange identical offers in ignorance at the time of each other’s offer, the offers are called __________. (a) Standing Offer. (b) Open Offer. (c) Identical Offers. (d) Cross Offer. 87. Goods which are to be manufactured or produced or acquired by the seller after making the contract of sale are known as __________. (a) Specific Goods (b) Existing Goods (c) Future Goods (d) Unascertained Goods 88. A person who is mentally deranged due to some mental strain or other personal experience and suffers from intermittent intervals of sanity and insanity is __________. (a) Idiot Person (b) Lunatic Person (c) Intoxicated Person (d) All of the above 89. Expulsion of a partner, which is not in accordance with provisions of the Indian Partnership Act, 1932 is __________. (a) Null and void (b) Null and void to some extent (c) Is unconstitutional (d) In good faith and in the interest of the partnership 90. The provisions relating to passing of property in case of goods sent on approval or ‘on sale or return’ basis is dealt in the __________ . (a) Indian Contract Act, 1872 (b) Indian Partnership Act, 1932 (c) Sale of Goods Act, 1930 (d) Transfer of Property Act, 1882 91. Dissolution of partnership means ________. (a) Dissolution of partnership between all the partners of a firm (b) Insolvency of all the partners (c) Both of the above (d) None of the above 92. If the buyer is insolvent, ________. (a) The seller cannot exercise the right of stoppage in transit (b) The seller cannot exercise the right of lien (c) The seller can exercise the right of lien (d) The seller can exercise the right of stoppage in transit 246 Common Proficiency Test (CPT) Volume - I © The Institute of Chartered Accountants of India 93. There can be a stranger to a consideration but not a stranger to a contract signifies that a consideration may move from ________. (a) Promisee or any other person (b) Promisee (c) Promisor (d) An independent person 94. A Hindu widow borrowed money from a lender for the purpose of filing a suit for maintenance. The lender advanced money at 100 percent rate of interest. The act of the money lender is induced by ________. (a) Coercion (b) Undue Influence (c) Fraud (d) Misrepresentation 95. 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 96. When performance of promise becomes impossible or illegal by occurrence of an unexpected event or change of circumstances beyond the contemplation of parties, the contract becomes void. The situation is dealing with ________. (a) Remission (b) Recission (c) Supervening Impossibility (d) Alteration 97. X, Y, Z are partners in a firm and X becomes insolvent. Then ________. (a) The firm has to dissolve by default. (b) The firm may not be dissolved unless there is any agreement between the partners to do so. (c) The status of the firm becomes illegal from the date of adjudication of X as an insolvent. (d) X remains a partner, unless the firm is dissolved. 98. A contingent contract is ________. (a) A contract to do something if some event collateral to such contract does or does not happen. (b) A contract not to do something if some event collateral to such contract does or does not happen. (c) A contract to do or not to do something if some event collateral to such contract does or does not happen. (d) A contract to do or not to do something if some event collateral to such contract does not happen. Common Proficiency Test (CPT) Volume - I 247 © The Institute of Chartered Accountants of India MODEL TEST PAPER - 9 99. Arun had deposited a bag in the cloak Room of a railway station by paying Rs. 50/. On the face of the ticket, issued to him. were inscribed “see reverse for terms & conditions”. Clause 10 of the printed Terms & Conditions limited the liability of the company for loss of a baggage to Rs. 100/-. The bag was lost and Arun claimed Rs. 650/- as its value. (a) Arun was not bound by the conditions on the back of the ticket as he had not read them at all. (b) Arun was bound by the conditions on the back of the ticket even if he had not read them. (c) Arun was not bound by the conditions on the back of the ticket as his claim was 13 times more than the compensation offered to him by the railway company. (d) Arun was bound by the conditions on the back of the ticket as he had not read them in full. 100. A and B become partners for 16 years. A pays B a premium of Rs. 5,000/-. At the end of 8 years there is dispute between A and B and they declare a dissolution. (a) A can get back entire amount of the premium paid by him to B. (b) A can get back a reasonable part of the premium. (c) A can get back Rs. 2,500/- from B. (d) A cannot get back any amount of the premium paid by him. SECTION – C : GENERAL ECONOMICS (50 MARKS) 101. Which of the following statements is incorrect? (a) Unlike normative economics, positive economics is based on objective analysis of economic issues. (b) The opportunity cost of a good is the quantity of other goods sacrificed to get another unit of that good. (c) Microeconomics emphasizes interactions in the economy as a whole. (d) None of the above. 102. Which of the following is incorrect? (a) The production possibilities frontier shows the maximum combination of outputs that the economy can produce using all the resources available. (b) Increasing opportunity cost implies a production possibility frontier concave to the origin. (c) Free markets are the markets in which the governments do not intervene. (d) All of the above are correct. 103. With the same amount of resources, a farmer can feed the following combinations of goats and horses: Goats Horses Option I 168 44 Option II 150 50 Given the option available with him, what is the opportunity cost to the farmer of feeding one horse? (a) 1 goat. (b) 3 horses. (c) 3 goats. (d) 18 goats. 248 Common Proficiency Test (CPT) Volume - I © The Institute of Chartered Accountants of India 104. A drought in India leads to unusually low level of wheat production. This would lead to a rise in the price of wheat and fall in the quantity of wheat demanded due to: (a) excess demand at the original price. (b) excess supply at the original price. (c) the supply curve shifting to the right.(d) the demand curve shifting to the left. 105. If the elasticity of demand for a commodity is perfectly inelastic then which of the following is incorrect? (a) The commodity must be essential to those who purchase it. (b) The commodity must have many substitutes. (c) The commodity will be purchased regardless of increase in its price. (d) The elasticity of demand for this commodity must equal zero. 106. If a good has price elasticity greater than one then: (a) demand is unit elastic and a change in price does not affect sellers’ revenue. (b) demand is elastic and a change in price causes sellers’ revenue to change in the opposite direction. (c) demand is inelastic and a change in price causes sellers’ revenue to change in the same direction. (d) None of the above is correct. 107. The law of diminishing returns implies that: (a) for each extra unit of X consumed, holding constant consumption of other goods, total utility increases. (b) total utility remains unchanged regardless of how many units of X are consumed. (c) marginal utility will increase at a constant rate as more units of X are consumed. (d) each extra unit of X consumed, holding constant consumption of other goods, adds successively less to total utility. 108. Which of the following is correct? (a) Firms that earn accounting profits are economically profitable. (b) Opportunity cost plus accounting cost equals economic cost. (c) When a firm’s demand curve slopes down marginal revenue will rise as output rises. (d) Firms increase profits by selling more output than their rivals. Common Proficiency Test (CPT) Volume - I 249 © The Institute of Chartered Accountants of India MODEL TEST PAPER - 9 109. You are given the following data: Table 1 Output Total Costs 0 0 1 15 2 28 3 38 4 46 5 54 The above data is an example of: (a) decreasing returns to scale. (b) constant returns to scale. (c) increasing returns to scale. (d) positive fixed costs. 110. Which of the following statements is incorrect? (a) If marginal revenue exceeds marginal cost the firm should increase output. (b) If marginal cost exceeds marginal revenue the firm should decrease output. (c) Economic profits are maximized when total costs are equal to total revenue. (d) Profits are maximized when marginal revenue equals marginal cost. 111. Which of the following involve a trade-off? (a) Taking a nap (b) All of these answers involve trade-offs. (c) Watching a football game on Saturday afternoon (d) Going to university 112. When some people in a society are unwilling to work at the prevailing wage rate and there are people who have income from property or some other sources and need not work, such people are: (a) casually unemployed. (b) chronically unemployed. (c) voluntarily unemployed. (d) disguisedly unemployed. 113. If out of 100 people in the labour force, 92 are in the work force, the number of people unemployed is: (a) 8 (b) 192 (c) 100 (d) 92 114. NIXI stands for: (a) National Internet Exchange of India. (b) National International Exchange of India. (c) National Institute of Exchange of Indian goods. (d) None of the above. 250 Common Proficiency Test (CPT) Volume - I © The Institute of Chartered Accountants of India 115. If demand for goods and services is more than their supply, the resultant inflation is: (a) cost push inflation. (b) stagflation. (c) deflation. (d) demand pull inflation. 116. The actual disinvestment in the year 2007-08 is _______. (a) Rs. 5,000 crore. (b) Rs. 2,367 crore. (c) Rs. 1,567 crore. (d) Rs. 4,000 crore. 117. Trade-offs are required because wants are unlimited and resources are _______. (a) economical. (b) unlimited. (c) efficient. (d) scarce 118. If an increase in the price of blue jeans leads to an increase in the demand for tennis shoes, then blue jeans and tennis shoes are _________. (a) complements. (b) inferior goods. (c) normal goods. (d) substitutes. 119. Consumer surplus is the area _________. (a) below the demand curve and above the price. (b) above the supply curve and below the price. (c) above the demand curve and below the price. (d) below the supply curve and above the price. 120. A rational person does not act unless _________. (a) the action is ethical. (b) the action produces marginal costs that exceed marginal benefits. (c) the action produces marginal benefits that exceed marginal costs. (d) the action makes money for the person. 121. Suppose you find Rs 100. If you choose to use Rs.100 to go to a football match, your opportunity cost of going to the game is _________. (a) nothing, because you found the money. (b) Rs. 100 (because you could have used Rs. 100 to buy other things) plus the value of your time spent at the game. (c) Rs. 100 (because you could have used the Rs. 100 to buy other things) plus the value of your time spent at the game, plus the cost of the dinner you purchased at the game. (d) Rs. 100 (because you could have used the Rs.100 to buy other things). Common Proficiency Test (CPT) Volume - I 251 © The Institute of Chartered Accountants of India MODEL TEST PAPER - 9 122. If a fisherman must sell all of his daily catch before it spoils for whatever price he is offered, once the fish are caught the fisherman’s price elasticity of supply for fresh fish is _________. (a) zero. (b) infinite. (c) one. (d) unable to be determined from this information. 123. If consumers always spend 15 percent of their income on food, then the income elasticity of demand for food is _________. (a) 1.50 (b) 1.15 (c) 1.00 (d) 0.15 124. If marginal revenue exceeds marginal cost, a monopolist should _________. (a) increase output. (b) decrease output. (c) keep output the same because profits are maximized when marginal revenue exceeds marginal cost. (d) raise the price. 125. A market structure in which many firms sell products that are similar but not identical is known as (a) monopolistic competition. (b). monopoly. (c) perfect competition. (d) oligopoly. 126. Net national product at market price minus net indirect taxes is equal to _________. (a) net foreign investment (b) net foreign investment plus net domestic investment (c) net national product at factor cost. (d) replacement expenditure 127. Estate duty was levied on the _________. (a) incomes of the individual (b) production of goods (c) export and import of goods (d) total property passing to the heirs on the death of a person. 128. _________ countries are more subject to cyclical fluctuations. (a) European. (b) Capital biased, advanced countries. (c) Asian. (d) American 129. For almost three decades (1950-80) the average GDP growth rate was about _________ % per annum. (a) 6.6 (b) 5.4 (c) 2.5 (d) 3.6 252 Common Proficiency Test (CPT) Volume - I © The Institute of Chartered Accountants of India 130. Electricity generated from water is called _________. (a) thermal electricity. (b) hydel electricity. (c) atomic energy. (d) tidal energy. 131. Over the years the number of cancer cases has _________. (a) increased. (b) decreased. (c) remained constant. (d) doubled. 132. Quantitative restrictions on _________ items were removed in the EXIM Policy of 2001-02. (a) 123 (b) 193 (c) 715 (d) 183 Read Figure 1 and answer questions 133-135. 133. Refer to Figure 1, if the economy is operating at point C, the opportunity cost of producing an additional 15 units of bacon is (a) 40 units of eggs. (b) 10 units of eggs. (c) 20 units of eggs. (d) 30 units of eggs. 134. Refer to Figure 1, if the economy was operating at E: (a) the opportunity cost of 20 additional units of eggs is 10 units of bacon. (b) the opportunity cost of 20 additional units of eggs is 20 units of bacon. (c) the opportunity cost of 20 additional units of eggs is 30 units of bacon. (d) 20 additional units of eggs can be produced with no impact on bacon production. Common Proficiency Test (CPT) Volume - I 253 © The Institute of Chartered Accountants of India MODEL TEST PAPER - 9 135. If the economy moves from point A to point D in Figure 1 then: (a) the opportunity cost of eggs in terms of bacon falls. (b) the opportunity cost of eggs in terms of bacon rises. (c) the opportunity cost of eggs in terms of bacon is constant. (d) the economy becomes less efficient. 136. Point F in figure 1 represents: (a) none of these answers. (b) a combination of production that can be reached if we reduce the production of eggs by 20 units. (c) a combination of production that can be reached if there is a sufficient advance in technology. (d) a combination of production that is inefficient because there are unemployed resources. 137. Which of the following represents a movement towards better utilisation of existing resources? (a) A movement from point A to point B. (b) A movement from point E to point B. (c) A movement from point C to point B. (d) A movement from point F to point B. 138. Suppose that the price of a new bicycle is Rs. 200. Natalie values a new bicycle at Rs. 400. What is the value of total consumer surplus if Natalie buys a new bike? (a) Rs. 500 (b) Rs. 300 (c) Rs. 200 (d) Rs. 400 139. Suppose that at a price of Rs 300 per month, there are 30,000 subscribers to cable television in Small Town. If Small Town Cablevision raises its price to Rs. 400 per month, the number of subscribers will fall to 20,000. Using the midpoint method for calculating the elasticity, what is the price elasticity of demand for cable TV in Small Town? (a) 1.4 (b) 0.66 (c) 0.75 (d) 2.0 140. If a buyer’s willingness to pay for a new car is Rs. 200,000 and she is able to actually buy it for Rs.1,80,000 her consumer surplus is (a) Rs.18,000 (b) Rs.20,000 (c) Rs. 2,000 (d) Rs. 0 254 Common Proficiency Test (CPT) Volume - I © The Institute of Chartered Accountants of India 141. Suppose there are three identical vases available to be purchased. Buyer 1 is willing to pay Rs 30 for one, buyer 2 is willing to pay Rs 25 for one, and buyer 3 is willing to pay Rs 20 for one. If the price is Rs 25, how many vases will be sold and what is the value of consumer surplus in this market? (a) Three vases will be sold and consumer surplus is Rs. 80. (b) One vase will be sold and consumer surplus is Rs. 5. (c) One vase will be sold and consumer surplus is Rs.30. (d) Two vases will be sold and consumer surplus is Rs. 5. Read the following paragraph and answer questions 142-144 Nicole owns a small pottery factory. She can make 1,000 pieces of pottery per year and sell them for Rs. 100 each. It costs Nicole Rs. 20,000 for the raw materials to produce the 1,000 pieces of pottery. She has invested Rs 1,00,000 in her factory and equipment: Rs 50,000 from her savings and Rs 50,000 borrowed at 10 percent. (Assume that she could have loaned her money out at 10 per cent, too.) Nicole can work at a competing pottery factory for Rs. 40,000 per year. 142. The accounting cost at Nicole’s pottery factory is: (a) Rs. 25,000 (b) Rs. 50,000 (c) Rs. 80,000 (d) Rs. 75,000 143. The economic cost at Nicole’s factory is: (a) Rs. 75,000 (b) Rs. 70,000 (c) Rs. 80,000 (d) Rs 30,000 144. The accounting profit at Nicole’s pottery factory is: (a) Rs. 30,000 (b) Rs.50,000 (c) Rs. 80,000 (d) Rs 75,000 145. The economic profit at Nicole’s factory is: (a) Rs. 75000 (b) Rs. 35000 (c) Rs 80000 (d) Rs 30000 Mr. X and Co. operates in a perfectly competitive market. He sells his product at Rs. 8 per unit. His fixed costs are Rs. 100. His other costs are given below. Read the following table and answer questions 146-150. Output Variable Cost Fixed Cost Total Cost Marginal Cost 0 0 1 5 2 11 3 18 4 26 5 36 6 50 Common Proficiency Test (CPT) Volume - I 255 © The Institute of Chartered Accountants of India MODEL TEST PAPER - 9 146. What is Mr X and Co’s total cost when 4 units are produced? (a) Rs. 126 (b) Rs. 100 (c) Rs. 26 (d) Rs. 8 147. When Mr. X and Co’s production increases from 5 to 6 units, his marginal cost becomes? (a) Rs. 8 (b) Rs. 14 (c) Rs. 10 (d) Rs. 6 148. The average fixed cost of producing 4 units is: (a) Rs 1.50 (b) Rs 2.25 (c) Rs. 25 (d) Rs. 3.00 149. The average total cost of producing 6 units is: (a) Rs. 2.50 (b) Rs. 3.00 (c) Rs. 25 (d) Rs. 30 150. When will Mr X and Co maximize profits? (a) When 4 units are produced. (b) When 5 units are produced. (c) When the company shuts down. (d) When 3 units are produced. SECTION – D : QUANTITATIVE APTITUDE (50 MARKS) 151. Factor reversal test is satisfied by (a) Laspeyre’s index. (b) Paasche’s index. (c) Fisher’s ideal index. (d) None of these. 152. Laspeyre’s index is based on (a) Base year quantities. (b) Current year quantities. (c) Average of current year and base year. (d) None of these. 153. The mean and mode of a normal distribution (a) Are always different. (b) Are always equal. (c) May be different. (d) May be equal. 154. Two cards are drawn from a well shuffled pack of 52 cards. Find the probability that they are both kings if the first is replaced. (a) 1/13 (b) 1/ 169 (c) 1/221 (d) None of these. 256 Common Proficiency Test (CPT) Volume - I © The Institute of Chartered Accountants of India 155. A pair of dice is thrown and sum of the numbers on the two dice comes to be 7. What is the probability that the number 3 has come on one of the dice? (a) 1/9 (b) 1/3 (c) 1/4 (d) None of these. 156. If in binomial distribution np = 6 and npq = 3, then p is equal to (a) 1/3 (b) 1/2 (c) 1/4 (d) None of these. 157. P is the index for time 10 (a) 1 on 0 (b) 0 on 1 (c) 1 on 1 (d) 0 on 0 dy 158. Find value of if y = xx dx (a) xx . log ex (b) 1 + log x e (c) y. log x (d) None of these. x2 –a2 159. Compute the value of lim x→a x–a (a) a (b) 2a (c) – 2a (d) a2 160. Two variables x and y are related by 7x + 7y + 13 = 0 and x = 7, then y is (a) 8.80 (b) 8.86 (c) – 8.80 (d) – 8.86 161. We use t-distribution when samples are drawn from the ______ population. (a) Normal (b) Binomial (c) Poisson (d) None of these 162. ________ is uniparametric distribution. (a) Binomial (b) Poisson (c) Normal (d) Hyper geometric 163. First quartile is the value for which one–fourth of the observations are ________Q and the 1 remaining three–fourths observations are ________Q 1. (a) Less than or equal to, More than or equal to (b) More than or equal to, Less than or equal to (c) Less than, More than (d) More than, Less than Common Proficiency Test (CPT) Volume - I 257 © The Institute of Chartered Accountants of India MODEL TEST PAPER - 9 164. A variable is known to be ________ if it can assume any value from a given interval. (a) Discrete (b) Continuous (c) Attribute (d) Characteristic 165. ________ is the entire upper part of the table which includes columns and sub–column numbers, unit(s) measurement. (a) Stub (b) Box–head (c) Body (d) Caption 166. ________ is the left part if the table providing the description of the rows. (a) Caption (b) Body (c) Stub (d) Box head 167. In case of a ________, plotted points on a scatter diagram concentrate from upper left to lower right. (a) Zero correlation (b) Negative correlation (c) Positive correlation (d) Multiple correlation 168. 50% of actual values will be below & 50% of values will be above ________. (a) Mode (b) Median (c) Mean (d) Q 1 169. The correlation between Employment and Purchasing power is ________. (a) Positive (b) Negative (c) Zero (d) None of these 170. Data collected on sex ratio from the census reports are ________. (a) Primary data (b) Secondary data (c) Discrete data (d) Continuous data 171. What is the median for the following observations 6,10,15,16,20,5,8? (a) 8 (b) 10 (c) 15 (d) None of these. 172. The variables x and y are related by 2x+ 3y = 6 and median of x is 2. What is the median of y? (a) 1/3 (b) 2/3 (c) 1 (d) None of these. 258 Common Proficiency Test (CPT) Volume - I © The Institute of Chartered Accountants of India 173. Find D for the following observations: 6 7, 9, 5, 4, 10, 15, 14, 18, 6, 20 (a) 11.40 (b) 12.40 (c) 13.40 (d) 13.80 174. Refer following table: Frequency distribution of weights of 16 students Weight in kg. No. of students (Class interval) (Frequency) 44 – 48 4 49 – 53 5 54 – 58 7 Total 16 Find Relative frequency for the second class interval? (a) 1/11 (b) 5/4 (c) 5/16 (d) 1/4 175. If the coefficient of correlation between two variables is –0.4, then the coefficient of determination is (a) 0.6 (b) 0.16 (c) 0.4 (d) 0.2 176. If the coefficient of correlation between two variables is 0.7, then the percentage of variation unaccounted for is (a) 70% (b) 30% (c) 51% (d) 49% 177. A bag contains 5 red and 3 yellow balls. Two balls are drawn at random one after the other without replacement. The probability that both balls drawn are yellow is (a) 9/64 (b) 3/28 (c) 1/7 (d) None of these. 178. The common ratio of the G.P. 2,–6, 18, –54 is (a) 3 (b) –3 (c) 4 (d) –4 Common Proficiency Test (CPT) Volume - I 259 © The Institute of Chartered Accountants of India MODEL TEST PAPER - 9 dx ∫ 179. The integral of will be x2 –a2 1 (x–a) 1 (x+a) log log (a) (b) 2a (x+a) 2a (x–a) 1 x log (c) (d) None of these. 2a (x+a) 180. How many numbers greater than 2000 can be formed with the digits 1, 2,3,4,5 with each digit distinct? (a) 216 (b) 120 (c) 24 (d) 240 181. If A = (1, 2, 3, 5, 7) and B= (1, 3, 6, 10, 15) then cardinal number of A~B is (a) 3 (b) –4 (c) 6 (d) None of these. d2p 182. Let p = x3 log x, so what is the value of dx2 (a) x + 2x log x (b) x2 + log x 2x2 (c) x2 + 2x log x (d) None of these. 183. Ram is confused whether to invest at 9% p.a. compounded monthly or 9.25% p.a. simple interest, given that (1+ 0.0075)12 = 1.09380690 The student decided to find effective rate of interest which is (a) 9% (b) 9.25% (c) 9.38% (d) None of these. 184. Find the equation of the line with slope –0.25 and (–2, –4) on the line (a) x + 4y + 18 = 0 (b) 2x + 4y + 15 = 0 (c) 2x + y + 18 = 0 (d) x + 4xy – 18 = 0 dy 185. Find when y = 4x3 + 8x7 at x2 = 2 dx (a) 424 (b) 470 (c) 472 (d) None of these. 260 Common Proficiency Test (CPT) Volume - I © The Institute of Chartered Accountants of India ⎛ 9⎞x 186. Evaluate lim⎜1+ ⎟ x→∞⎝ x⎠ (a) e9 (b) 9 (c) 1 (d) e1 187. If the set P has 6, Q has 5 and R has 2 elements, then the set P ××××× Q ××××× R contains (a) 13 (b) 9 (c) 60 (d) None of these. 188. Find the 10th term of an A.P with first term as 4 and common difference being 2 (a) 22 (b) 25 (c) 20 (d) 13 189. nP can be expressed as r n! n! (a) r! (b) (n−r)! n! (c) r!(n−r)! (d) None of these. 190. If 10–2 =, then the value of log 0.01 is 10 (a) –2 (b) 2 (c) –1 (d) 1 191. Solving equation 3x2 – 14x + 16 = 0, we get roots as (a) +1 (b) +2 (c) 0 (d) None of these. 192. Mr. Rahul invested in Bank Rs. 80,000 for 4 years at 10% p.a. rate of interest. How much he will earn? (a) Rs. 32,000 (b) Rs. 18,000 (c) Rs. 23,000 (d) None of these. ( )−6 ( )−2 193. Find the value of p from 4 × 2 =2p (a) 16 (b) 8 (c) –8 (d) 4 Common Proficiency Test (CPT) Volume - I 261 © The Institute of Chartered Accountants of India MODEL TEST PAPER - 9 2 dx ∫ 194. Evaluate (x+1) (x+2) 1 ⎛9⎞ ⎛8⎞ (a) log⎜ ⎝ ⎟ ⎠ (b) log⎜ ⎝ ⎟ ⎠ 8 9 ⎛6⎞ ⎛5⎞ (c) log⎜ ⎝ ⎟ ⎠ (d) log⎜ ⎝ ⎟ ⎠ 8 4 p q r p+q+r 195. If = = then is 7 6 11 p (a) 8 (b) 5 (c) 4 (d) None of these. 196. The numbers 2.4, 3.2, 1.5, 2 are in proportion & their product of means is 4.8, find the product of extremes? (a) 4.8 (b) 2.4 (c) 8.4 (d) None of these. 1 1 1 2 3 4 3 2 1 197. Determine the solution set of + + =5; − − =−11 and + − =−6 is x y z x y z x y z (a) 2, 6, 3 (b) 2, 3, 6 (c) 6, 3, 2 (d) 6, 2, 3 198. In a class of boys (x) and girls (y) the maximum seating capacity is 360. This can be shown by (a) x + y < 360 (b) x + y > 360 (c) x + y 360 (d) None of these. 199. Determine the common difference of progression 16, 13,10 .............. 25 terms (a) 2 (b) –2 (c) 3 (d) –3 200. If P = {1, 2, 3, 4} : Q = {2, 4, 6} then P∪Q (a) {1, 2, 3, 6} (b) {1, 4, 6} (c) {1, 2, 3, 4, 6} (d) None of these. (cid:2)(cid:2)(cid:2) 262 Common Proficiency Test (CPT) Volume - I © 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 – 10 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. Mr. Ashok buys clothing of Rs. 50,000 paying cash Rs. 20,000. What is the amount of expense as per the accrual concept? (a) Rs. 50,000. (b) Rs. 20,000. (c) Rs. 30,000. (d) Nil. 2. Loss leads to a reduction in (a) Liability. (b) Capital. (c) Income. (d) None of the three. 3. Accounting standards are (a) Basis for selection of accounting policy. (b) Set of broad accounting policies to be followed by an entity. (c) Basis for establishing and managing an entity. (d) All of the above. 4. “Substance of any transaction should be considered while recording them and not only the legal form” is the statement which holds true for: (a) Substance over form. (b) Disclosure of accounting policies. (c) Both (a) and (b). (d) None of the three. Common Proficiency Test (CPT) Volume - I 263 © The Institute of Chartered Accountants of India MODEL TEST PAPER - 10 5. The determination of the amount of provision for doubtful debts is an accounting (a) Policy. (b) Estimate. (c) parameter. (d) None of the above 6. What is the order in which the accounting transactions and events are recorded in the books? (a) Journal, Subsidiary books, Ledger, Balance sheet , Profit and loss account. (b) Ledger, Journal, Ledger, Balance sheet , Profit and loss account (c) Journal, Ledger, Profit and loss account, Balance sheet . (d) Profit and loss account, Ledger, Balance sheet, Journal. 7. The expired portion of capital expenditure is shown in the financial statements as (a) As an income. (b) As an expense. (c) As an asset. (d) As a liability. 8. Rs. 5,000 incurred for upgradation of computer by installation of 128 MB RAM is (a) Capital expenditure. (b) Deferred revenue expenditure. (c) Revenue expenditure. (d) None of the above. 9. According to money measurement concept, currency transactions and events are recorded in the books of accounts (a) In the ruling currency of the country in which transaction takes place. (b) In the ruling currency of the country in which books of account are prepared. (c) In the currency set by the ministry of finance. (d) In the currency set by the Government. 10. All of the following errors do not affect the trial balance, except (a) Compensating errors. (b) Errors of complete omission. (c) Errors of partial omission. (d) Errors of principle. 11. Errors are ________ mistakes. (a) Intentional. (b) Unintentional. (c) Undetected. (d) None of the three. 12. Trial balance is a statement which shows the ________ or the ________of all the accounts. (a) Balances, Entries. (b) Opening balances, Closing balances. (c) Posted balances, Total of balances. (d) Debit balance, Credit balance. 13. It is easy to detect ________ than to ________. (a) Frauds, Errors. (b) Mistakes, Errors. (c) Errors, Frauds. (d) Errors, Mistakes. 264 Common Proficiency Test (CPT) Volume - I © The Institute of Chartered Accountants of India 14. In case of debit balance, the words ________ are written on the debit side. (a) To balance b/d. (b) To balance c/d. (c) By balance b/d. (d) By balance c/d. 15. Rs. 5,000 spent on maintenance of plant and machinery is ________. (a) Capital expenditure. (b) Revenue expenditure. (c) Deferred capital expenditure. (d) None of the three. 16. Bank pass book is also known as ________ (a) Bank book. (b) Bank account. (c) Bank column. (d) Bank statement. 17. Capital expenditures are recorded in the ________ (a) Balance sheet. (b) Profit and loss account. (c) Trading account. (d) Manufacturing account. 18. Accounts receivable normally has ________ balance. (a) Debit. (b) Credit. (c) Unfavourable. (d) None of the above. 19. An account is a formal record of changes in items of ________ nature. (a) Revenue. (b) Expense. (c) Debit. (d) Similar. 20. The assumption underlying the fixed installment method of depreciation is that of ________ of the asset over different years of its useful life. (a) Usage. (b) Equal usage. (c) Charge. (d) None of the above. 21. A businessman purchased goods for Rs.25,00,000 and sold 70% of such goods during the accounting year ended 31st March, 2010. The market value of the remaining goods was Rs.5,00,000. He valued the closing stock at Rs. 5,00,000 and not at Rs. 7,50,000 due to (a) Money measurement concept. (b) Conservatism concept. (c) Cost concept. (d) Periodicity concept. 22. M/s Omega Brothers, which was registered in the year 2004, has been following LIFO method for valuation of shares. It changed its method from LIFO to FIFO Method in the year 2009. The auditor raised objection to this change in the method of valuation of investments. The objection of the auditor is justified because (a) Change in the method should be done only with the consent of the auditor (b) Method can be changed only from FIFO to LIFO and not vice versa (c) Change in the method should be done only if it is required by some statute and change would result in appropriate presentation of financial statement (d) Method cannot be changed under any circumstances. Common Proficiency Test (CPT) Volume - I 265 © The Institute of Chartered Accountants of India MODEL TEST PAPER - 10 23. Following are the items of the balance sheet of Mr. X: Capital Rs. 7,00,000; Machinery Rs. 5,00,000 and cash Rs. 2,00,000. If Mr. X spends Rs. 5,000 to meet his family expenses, the balance of capital and cash accounts will be (a) Rs. 7,00,000 and Rs. 2,00,000. (b) Rs. 6,95,000 and Rs. 1,95,000. (c) Rs. 7,00,000 and RS. 1,95,000. (d) Rs. 6,95,000 and Rs. 2,00,000. 24. Mr. Mohan started a cloth business by investing Rs. 50,000, bought merchandise worth Rs. 50,000. He sold merchandise for Rs. 60,000. Customers paid him Rs. 50,000 cash and assured him to pay Rs. 10,000 shortly. The amount of revenue earned by him is _________ (a) Rs. 50,000. (b) Rs. 60,000. (c) Rs. 1,00,000. (d) Rs. 70,000. 25. If sales revenues are Rs. 4,00,000; cost of goods sold is Rs. 3,10,000, the gross profit is _________ (a) Rs. 90,000. (b) Rs. 4,00,000. (c) Rs. 3,10,000. (d) None of the three. 26. When balance as per cash book (debit balance) as on 31st March is the starting point, what will be the effect while preparing bank reconciliation statement when out of the cheques amounting to Rs. 5,000 deposited, cheques aggregating Rs. 1,500 were credited in March and cheques aggregating Rs. 2,000 credited in April and the rest have not been collected? (a) Subtract Rs. 2,000. (b) Add Rs 2,000. (c) Subtract Rs.3,500. (d) Add Rs. 3,500. 27. A and B purchased a piece of land for Rs. 30,000 and sold it for Rs. 60,000 in 2010. Originally A had contributed Rs. 12,000 and B Rs. 8,000. The profit on venture will be (a) Rs. 30,000 (b) Rs. 20,000 (c) Rs. 60,000 (d) Nil 28. On 1.1.2010 X draws a bill on Y for Rs 1,00,000. At maturity, the bill returned dishonoured as Y became insolvent and 40 paise per rupee is recovered from his estate. The amount recovered is: (a) 20,000 (b) Nil (c) 40,000 (d) 40 paise 29. An individual invests Rs.2,00,000 for running a stationery business. On 1st Jan., he purchases goods for Rs. 1,15,000 and sells for Rs. 1,47,000 during the month of January. He pays shop rent for the month Rs. 5,000 and finds that still he has goods worth Rs. 15,000 in hand. The amount of surplus will be (a) Rs. 42,000 (b) Rs. 1,62,000 (c) Rs. 47,000 (d) Rs. 27,000. 266 Common Proficiency Test (CPT) Volume - I © The Institute of Chartered Accountants of India 30. Goods costing Rs. 600 is supplied to Ram at the invoice of 10% above cost and a trade discount for 5%. The amount of sales will be (a) Rs. 627. (b) Rs. 660. (c) Rs. 570. (d) Rs. 620. 31. Goods sold for cash Rs. 10,000, plus 10% sales tax. Sales will be credited by (a) Rs. 11,000. (b) Rs. 10,000. (c) Rs. 9,000 (d) None of the above.. 32. Ganesh takes a salary Rs. 10,000 per month. He withdrew goods worth Rs. 2,500 for personal use and got salary Rs. 9,500 in cash. The excess payment of Rs. 2,000 will be debited to (a) Sales account. (b) Goods account. (c) Salary account. (d) Salary in advance account. 33. Journal entry for Rs. 6,000 stolen from the safe of the firm will be ________ (a) Dr. P& L a/c and Cr. Cash embezzlement a/c Rs. 6,000. (b) Dr. Cash embezzlement a/c and Cr. Cash a/c Rs. 6,000. (c) Dr. Cash a/c and Cr. P& L a/c Rs. 6,000 (d) None of the above. 34. After preparing the trial balance the accountant finds that the total of the debit side is short by Rs. 1,000. This difference will be __________ (a) Credited to suspense account. (b) Debited to suspense account. (c) Adjusted to any of the debit balance account. (d) Adjusted to any of the credit balance account. 35. The accountant of the firm M/s ABC is unable to tally the following trial balance. S. No. Account heads Debit (Rs.) Credit (Rs.) 1. Sales 12,500 2. Purchases 10,000 3. Miscellaneous expenses 2,500 Total 10,000 15,000 The above difference in trial balance is due to (a) Wrong placing of sales account (b) Incorrect totalling. (c) Wrong placing of miscellaneous expenses account (d) Wrong placing of all accounts. Common Proficiency Test (CPT) Volume - I 267 © The Institute of Chartered Accountants of India MODEL TEST PAPER - 10 36. Sita and Gita are partners sharing profits and losses in the ratio of 3:2 having the capital of Rs. 80,000 and Rs. 50,000 respectively. They are entitled to 9% p.a. interest on capital before distributing the profits. During the year firm earned Rs. 7,800 after allowing interest on capital. Profits apportioned among Sita and Gita is: (a) Rs. 4,680 and 3,120 (b) Rs. 4,800 and 3,000 (c) Rs. 5,000 and 2,800 (d) None of the above. 37. A sale of Rs. 100 to A recorded in the Purchase Book would affect: (a) Sales Account (b) Purchases Returns Account (c) Sales Account, Purchases Account & A Account. (d) None of the above. 38. Total capital employed by a partnership firm is Rs.1,00,000 and its average profit is Rs.25,000. Normal rate of return is 20% in similar firms working under similar conditions. The firms earns super profit of: (a) Rs. 3,000 (b) Rs. 5,000 (c) Rs. 4,000 (d) Rs. 2,000 39. If capital employed by a partnership firm is Rs.1,00,000 and its average profit is Rs. 20,000, normal rate of return is 15%, the value of goodwill according to capitalization method will be (a) Rs.30,000 (b) Rs.5,000 (c) Rs.1,33,333 (d) Rs.33,333 40. A and D are equal partners. They wanted to admit C as 1/6th partner who brought Rs.60,000 as goodwill. The new profit sharing ratio is 3:2:1. Profit sacrificing ratio will be (a) 0:1/6 (b) 2:1 (c) 3:1 (d) None of the above. 41. A, B, C & D are in partnership sharing profits and losses equally. They mutually agree to change the profit sharing ratio to 3:3:2:2. In this process D losses 1 1 (a) th share (b) th share 20 10 1 (c) th share (d) None of the above 5 268 Common Proficiency Test (CPT) Volume - I © The Institute of Chartered Accountants of India 42. The following information pertains to X Ltd. (i) Equity share capital called up Rs.5,00,000 (ii) Calls in arrear Rs.40,000 (iii) Calls in advance Rs.25,000 (iv) Proposed dividend 15% The amount of dividend payable is (a) Rs.75,000 (b) Rs.72,750 (c) Rs.71,250 (d) Rs.69,000 43 . Alfa Ltd. issued shares of Rs.10 each at a discount of 10%. Mr. C purchased 30 shares and paid Rs.2 on application but did not pay the allotment money of Rs.3. If the company forfeited his entire shares, the forfeiture account will be credited by: (a) Rs. 90. (b) Rs. 81. (c) Rs. 60. (d) Rs. 54. 44. The profits of last three years are Rs. 43,000; Rs. 38,000 and Rs. 45,000. Find out the goodwill of two years purchase. (a) Rs. 42,000. (b) Rs. 84,000. (c) Rs. 1,26,000. (d) Rs. 36,000. 45. Mohan sent some goods costing Rs. 3,500 at profit of 25% on sale to Sohan on sale or return basis. Sohan return goods costing Rs.800. At the year end, i.e., on 31st December, 2006, the remaining goods were neither returned nor approved by him. The stock on approval will be shown in the balance sheet at Rs. ______ (a) Rs. 2,000 (b) Rs. 2,700 (c) Rs. 2025 (d) Rs. 3,500 46. A’s acceptance to B for Rs.2,500 discharge by a cash payment of Rs.1,000 and a new bill for the balance plus Rs.50 for interest. The amount of the new bill will be Rs. ______ (a) 2,550 (b) 1,550 (c) 1,050 (d) None of the three. 47. A bought goods of the value Rs.10,000 and consigned them to B to be sold on joint venture, profits being divided equally. A draws a bill on B for an amount equivalent to 80% of cost on consignment. The amount of bill will be (a) Rs. 10,000 (b) Rs. 8,000 (c) Rs. 6,000 (d) Rs. 9,000 48. Goods costing Rs.1,80,000 sent to consignee to show a profit of 20% on invoice price. Invoice price of the goods is ______ (a) Rs. 2,16,000 (b) Rs. 2,25,000 (c) Rs. 2,10,000 (d) None of the above. Common Proficiency Test (CPT) Volume - I 269 © The Institute of Chartered Accountants of India MODEL TEST PAPER - 10 49. If 1,000 typewriters costing Rs.250 each are sent on consignment basis and Rs.10,000 is spent for freight etc., 20 typewriters are damaged in transit beyond repair. The amount of loss will be __________ (a) Rs. 5,000 (b) Rs.200 (c) Rs.5,200 (d) None of the above. 50. 1,000 Kg. of Mangoes were consigned to a wholesaler, the cost being Rs. 3 per kg. plus Rs. 400 freight. Loss of 15% of Mangoes is unavoidable. 750 kgs. were sold by the consignee. The remaining stock of 100 kg. will be valued at (a) Rs. 300. (b) Rs. 500. (c) Rs. 400. (d) None of the above. 51. Machinery costing Rs.10,00,000 was purchased on 1.4.2009. The installation charges amounting Rs.1,00,000 were incurred. The depreciation at 10% per annum on straight line method for the year ended 31st March, 2010 will be ____ (a) Rs.1,00,000 (b) Rs. 2,00,000 (c) Rs. 1,10,000 (d) None of the above. 52. Goods costing Rs 5,00,000 sent out to consignee at Cost + 25%. Invoice value of the goods will be _______ (a) Rs. 5,00,000 (b) Rs. 6,25,000 (c) Rs. 6,00,000 (d) None of the above. 53. Opening stock Rs. 2,50,000, closing stock Rs. 50,000, purchases Rs. 2,00,000, sales Rs. 5,00,000. Gross profit rate 20% on sales. The amount of gross profit is: (a) Rs. 1,10,000. (b) Rs. 1,00,000 (c) Nil. (d) None of the above. 54. XYZ & Company employs a team of ten workers who were paid Rs.1,000 each in the year ending 31st December, 2008. At the start of year 2009, the company raised salaries by 10%. The amount of salaries for the year ended 31st December, 2009 will be ______ (a) Rs. 10,000 (b) Rs. 15,000 (c) Rs. 11,000 (d) None of the above. 55. Debit balance as per Cash Book of ABC Enterprises as on 31.3.2010 is Rs. 10,000. Cheques deposited but not cleared amounts to Rs. 1,000 and Cheques issued but not presented of Rs. 2,000. Balance as per pass book should be (a) Rs. 11,000. (b) Rs. 9,000. (c) Rs. 10,000. (d) None of the three. 56. Goods purchased Rs. 1,00,000. Sales Rs. 90,000. Margin 20 % on sales. Closing stock is (a) Rs. 10,000. (b) Rs. 25,000. (c) Rs. 28,000. (d) None of the above. 270 Common Proficiency Test (CPT) Volume - I © The Institute of Chartered Accountants of India 57. Mohan runs a restaurant. He renovates some of the old cabins to increase some space. The amount of Rs. 15,000 was incurred on renovation. The amount to be charged to profit and loss account is (a) Nil. (b) Rs. 15,000. (c) Rs. 10,000. (d) None of the above 58. Money paid to MTNL Rs. 10,000 for installing telephone in office is: (a) Expense. (b) Liability. (c) Asset. (d) Revenue. 59. A company forfeited 1,000 shares of Rs.10 each (which were issued at par) held by Mr. John for non-payment of allotment money of Rs. 4 per share. The called-up value per share was Rs.8. On forfeiture, the amount debited to share capital will be (a) Rs.10,000 (b) Rs.8,000 (c) Rs.2,000 (d) Rs.18,000. 60. Capital introduced in the beginning by Shyam Rs. 3,00,000; further capital introduced during the year Rs. 2,00,000; Drawing Rs. 1,500 per month and closing capital is Rs. 4,50,000. The amount of profit or loss for the year is: (a) Loss of Rs. 32,000. (b) Loss of Rs. 50,000. (c) Profit of Rs. 32,000. (d) Information is insufficient for any comment. SECTION – B : MERCANTILE LAWS (40 MARKS) 61. Which of the following is correct: (a) The liability of partners of a firm is unlimited. (b) Generally the liability of a member of a company is limited but it can be unlimited. (c) All of the above. (d) The liability of partner of firm is same as a member of any company. 62. Under the Indian Contract Act, 1872, the termination of an agents’ authority can be caused due to (a) Revocation of authority by the agent. (b) Renunciation of agency by the principal. (c) Both (a) and (b). (d) Neither of (a) or (b). Common Proficiency Test (CPT) Volume - I 271 © The Institute of Chartered Accountants of India MODEL TEST PAPER - 10 63. The following are the requisites of a valid ratification of a contract of agency: (a) The whole transaction can be ratified. (b) Ratification must be communicated to the party who is sought to be bound by the act done by the agent. (c) Ratification can be of the acts which the principal had the power to do. (d) All of the above. 64. An offer may be made to the following: (a) A particular person. (b) A particular group or body of persons. (c) The public at large i.e. the whole world. (d) All of the above. 65. The following is not a ‘document of title to goods’: (a) Bill of lading. (b) Dock-warrant. (c) Stamped acknowledgement for receipt of goods. (d) Warehouse keeper’s certificate. 66. An agreement induced by mistake of fact is void if the following conditions are fulfilled: (a) Both the parties must be under the same mistake. (b) The mistake must be as to some fact. (c) The fact must be essential to the agreement. (d) All of the above. 67. Contracts may be classified on the basis of their validity, formation or performance. Contracts classified on the basis of formation are of the following types: (a) Express Contracts. (b) Implied Contracts. (c) Quasi Contracts. (d) All of the above. 68. A condition may be treated as warranty in the following cases: (a) Where the buyer altogether waives the performance of the condition. (b) Where the buyer elects to treat the breach of condition as one of a warranty. (c) In both of the above situations. (d) In some other situations, but not in the above situations. 69. The difference in consideration under English law and Indian law are: (a) Under English law past consideration is no consideration whereas under Indian Law past consideration is good consideration. (b) Under English law consideration must move from the promisee only and no other person whereas under Indian Law consideration may move from the promisee or any other person. 272 Common Proficiency Test (CPT) Volume - I © The Institute of Chartered Accountants of India (c) Under English law formal contracts i.e. one which is one in writing do not require any consideration whereas under Indian Law all contracts are required to be supported by consideration. (d) All of the above. 70. Implied authority of the partner does not empower him to (a) Open a bank account on behalf of the firm in his own name. (b) Compromise or relinquish any claim or portion of a claim by the firm against an outsider. (c) Both of the above. (d) None of the above. 71. Compulsory Dissolution includes (a) Dissolution by the adjudication of all the partners or of all the partners but one as insolvent. (b) Dissolution by the business of the firm becoming unlawful. (c) All of the above. (d) None of the above. 72. Ratification by a minor of a contract entered during minority, even after he attains majority is not allowed. (a) The above statement is correct. (b) The above statement is partly correct. (c) The above statement is incorrect. (d) The above statement is irrelevant. 73. A contract between A, B and C was executed whereby A pays money to B for delivering some goods to C. C has not paid any consideration. Can C enforce the agreement? (a) Yes, as he is the beneficiary of Trust. (b) Yes but the same can only be done jointly with A. (c) No as C did not pay the consideration. (d) A and only A can enforce the agreement. 74. In case of sale (a) Property in goods does not pass to the buyer. (b) Risk in the goods does not pass to the buyer. (c) Both of the above. (d) None of the above. 75. A void contract is a contract without any legal effect and cannot be enforced in a Court of law. The following are instances of void contracts: (a) Agreements entered under mistake of fact. (b) Agreements by way of wager. (c) Agreements made without consideration. (d) All of the above. Common Proficiency Test (CPT) Volume - I 273 © The Institute of Chartered Accountants of India MODEL TEST PAPER - 10 76. In case of bailment (a) Property in goods passes to the bailee at the time of contract. (b) Property in goods passes to the bailee upon the payment of the last installment. (c) Property in goods can pass to the bailee at any time after the contract. (d) None of the above. 77. Acceptance is deemed to take place when the buyer (a) Intimates to the seller that he had accepted the goods. (b) Does any act to the goods, which is inconsistent with the ownership of the seller. (c) Retains the goods after the lapse of a reasonable time, without intimating to the seller that he has rejected them. (d) Either (a) or (b) or (c). 78. The rights of a minor when admitted to the benefits of the partnership include (a) Right to share of the property and profits of the firm as may be agreed upon. (b) Right to have access to and inspect and copy of the account of the firm. (c) Right to cast his vote on the question of appointment of the managing partner. (d) (a) & (b) but not (c). 79. Which of the following is correct: (a) Liability of a partner in a partnership firm is unlimited. (b) Liability of a member of a HUF is unlimited. (c) Both the above. (d) None of the above. 80. Agreement to share profits _________. (a) Implies an agreement to share losses (b) Does not necessarily mean an agreement to share losses (c) Must be coupled with an agreement to share losses (d) Is same as agreement to share losses 81. Actual Sale of future goods is _________. (a) Impossible (b) Possible through an agreement to sell (c) Illegal (d) A myth 82. An offer made to a definite person who can be accepted by the specified person only is _________. (a) Special Offer (b) Accepted Offer (c) General Offer (d) Standing Offer 274 Common Proficiency Test (CPT) Volume - I © The Institute of Chartered Accountants of India 83. A contracts to pay B Rs.1,00,000 if the latter’s house is burnt to ashes. This is an example of _________. (a) Contingent Contract (b) Quasi-Contract (c) Guarantee (d) Bailment 84. The position of a stranger to a contract and that of the stranger to a consideration is _________. (a) Partially different (b) Partially same (c) Entirely different (d) Same 85. Goods are said to be in a deliverable state when _________. (a) The buyer may take delivery of them (b) The buyer would, under contract, be bound to take delivery of them (c) The seller is in a position to deliver them (d) All of the above 86. Any act committed by a party to a contract, or with his connivance or by his agent with intent to deceive another party thereto or his agent, or to induce him to enter into a contract is said to be _________. (a) Coercion (b) Undue Influence (c) Fraud (d) Misrepresentation 87. Provisions relating to doctrine of Caveat Emptor is laid down in the _________. (a) Sale of Goods Act, 1930 (b) Indian Contract Act, 1872 (c) Indian Partnership Act, 1932 (d) Companies Act, 1956 88. A directs B who is a solicitor to sell his estate by auction and to employ an auctioneer for this purpose. B names C, an auctioneer, to conduct the sale. The status of C for the sale is _________. (a) C is an agent of A (b) C is a sub-agent of A (c) C is an agent of B (d) C is neither an agent of A nor of B 89. A contract to do or not to do something if some event, collateral to such contract does or does not happen is _________. (a) A contingent contract (b) A wagering contract (c) Illegal (d) Void Common Proficiency Test (CPT) Volume - I 275 © The Institute of Chartered Accountants of India MODEL TEST PAPER - 10 90. X proposes by a letter sent by post to sell his house to Y. Y accepts the proposal by a letter sent by post. The letter of acceptance is in the course of transmission to X. Y _________. (a) Cannot revoke his acceptance (b) May revoke his acceptance at any time before the letter communicating the acceptance reaches X but not afterwards (c) May revoke his acceptance at any time after the letter communicating the acceptance reaches X (d) Can revoke only after the prior approval of X 91. A agrees to pay B Rs. 5,00,000/- if A is able to go to a foreign tour in the forthcoming week. It is _________. (a) A wagering contract (b) A contingent contract (c) Both of the above (d) Not a contract at all 92. A bus plying on the road is an example of _________. (a) Invitation to treat an offer (b) Mere communication of information in the course of negotiation (c) Statement of intention (d) Offer 93. Tender for supply of goods is an offer, which is allowed to remain open for acceptance over a period of time. Such offers are _________. (a) Cross Offer (b) General Offer (c) Standing Offer (d) Unlimited Offer 94. Consideration may be gratuitous or non-gratuitous _________. (a) In case of sale (b) In case of bailment (c) In both the above cases (d) In no case 95. Expressed conditions are those _________. (a) Which are agreed upon between the parties at the time of the contract (b) Which are presumed by law be present in the contract (c) Both of the above (d) None of the above 96. Right of lien and Right of stoppage in transit _________. (a) Actually mean the same right (b) Are actually similar rights (c) Are consequential or sequential in nature, i.e. the end of right of lien is the starting point of the right of stoppage in transit (d) Are rights available to any seller of goods 276 Common Proficiency Test (CPT) Volume - I © The Institute of Chartered Accountants of India 97. Goodwill of the partnership business can be regarded as _________________. (a) The property of the firm (b) The property of the firm, subject to a contract between the partners to this effect (c) The property of the firm, irrespective of a contract between the partners to this effect (d) The property of the firm, subject to order of the High Court to this effect 98. A minor when admitted to the benefits of the partnership ______________. (a) Is liable for all the liabilities of the firm in person (b) Is liable for all the liabilities of the firm through his properties (c) Is never liable for any of the liabilities of the firm (d) Is liable in accordance with the provisions of subs-section (3) of Section 30 of the Indian Partnership Act, 1932 99. A & B are partners in a partnership firm. A introduced C, a former partner, as his partner to D. C remained silent at that moment, but later on informed D that he is actually a former partner of the firm. C had not issued any public notice in the year of his retirement from the partnership firm. D, a trader knowing well that only A & B are the partners of the firm, supplied 500 refrigerators to the firm on credit. The credit period expired and D did not get the price of his supplies. D filed a suit against A & C for the recovery of price. In light of the above circumstances answer which of the following is correct: (a) C is liable for the price to D, only if the element of fraudulent intention is present. (b) C is liable for the price to D, irrespective of the fact, whether the element of fraudulent intention is present or not. (c) C is not liable for the price to D. (d) C is liable to D because he had not issued any public notice of his retirement from the partnership firm. 100. Sanju took a medical insurance from Deadly Diseases Insurance & Claim Corporation of Asia (DDICCA) through one of its agent, Manju. Sanju singed whatever documents were placed before her by Manju in good faith. The documents contained the fact that Sanju was healthy, fit and fine whereas she was actually suffering from chronic asthma and acute allergy. Sanju did not take care to suggest the changes in the documents and the policy was issued based on the above submissions. (a) Sanju is well protected because she relied on Manju in all good faith. (b) Sanju is well protected because Manju never specifically asked here about the above issues and so she remained silent. (c) Sanju has a duty to speak and disclose the above issues. (d) Sanju has no duty to speak and disclose the above issues. It is the duty of DDICCA and its representatives to ask whatever is required. Common Proficiency Test (CPT) Volume - I 277 © The Institute of Chartered Accountants of India MODEL TEST PAPER - 10 SECTION – C : GENERAL ECONOMICS (50 MARKS) 101. Economics is the study of (a) how society manages its unlimited resources. (b) how to reduce our wants until we are satisfied. (c) how society manages its scarce resources. (d) how to fully satisfy our unlimited wants 102. Which of the following is not part of the opportunity cost of going on holiday? (a) the money you spent on a theatre show (b) the money you could have made if you had stayed at home and worked (c) the money you spent on airline tickets (d) the money you spent on food 103. Which of the following statements is normative? (a) Large government deficits cause an economy to grow more slowly. (b) People work harder if the wage is higher. (c) The unemployment rate should be less. (d) Printing too much money causes inflation. 104. If an increase in consumer incomes leads to a decrease in the demand for camping equipment, then camping equipment is (a) a normal good. (b) none of these answers. (c) an inferior good. (d) a substitute good. 105. Suppose consumer tastes shift toward the consumption of apples. Which of the following statements is an accurate description of the impact of this event on the market for apples? (a) There is an increase in the quantity demanded of apples and in the supply for apples. (b) There is an increase in the demand and supply of apples. (c) There is an increase in the demand for apples and a decrease in the supply of apples. (d) There is an increase in the demand for apples and an increase in the quantity supplied 106. A buyer’s willingness to pay is that buyer’s: (a). minimum amount he is willing to pay for a good. (b) producer surplus. (c) consumer surplus. (d) maximum amount he is willing to pay for a good. 278 Common Proficiency Test (CPT) Volume - I © The Institute of Chartered Accountants of India 107. The following table exhibits: Number of workers Output 0 0 1 23 2 40 3 50 (a) increasing marginal product of labour. (b) diminishing marginal product of labour. (c) increasing returns to scale. (d) diminishing returns to scale. 108. If there are implicit costs of production: (a) economic profit will be equal to accounting profit. (b) economic profit will be less than accounting profit. (c) economic profits will be zero. (d) economic profit will be more than accounting profit. 109. If a competitive firm doubles its output, its total revenue: (a) doubles. (b) more than doubles. (c) less than doubles. (d) cannot be determined because the price of the good may rise or fall. 110. In the long-run, some firms will exit the market if the price of the good offered for sale is less than: (a) marginal revenue. (b) marginal cost. (c) average total cost. (d) average revenue. 111. Which of the following statements about price and marginal cost in competitive and monopolized markets is true? (a) In competitive markets, price equals marginal cost; in monopolized markets, price exceeds marginal cost. (b) In competitive markets, price equals marginal cost; in monopolized markets, price equals marginal cost. (c) In competitive markets, price exceeds marginal cost; in monopolized markets, price exceeds marginal cost. (d) In competitive markets, price exceeds marginal cost; in monopolized markets, price equals marginal cost. 112. Agriculture faces the problem of: (a) slow and uneven growth. (b) over irrigation. (c) overdose of fertilizers. (d) very few people engaged in it. Common Proficiency Test (CPT) Volume - I 279 © The Institute of Chartered Accountants of India MODEL TEST PAPER - 10 113. ICICI bank is a: (a) central bank. (b) private commercial bank. (c) rural regional bank. (d) nationalized bank. 114. PMGSY was launched to: (a) provide house to the rural poor. (b) provide road connectivity through good all weather roads to unconnected villages. (c) food security to the urban poor. (d) none of the above. 115. If 4 farmers can do a field job which is being done by 6 farmers, this means there is: (a) frictional unemployment. (b) disguised unemployment. (c) voluntary unemployment. (d) seasonal unemployment. 116. If 9 people are unemployed and 411 people are in the work force, then people in labour force are: (a) 402 (b) 411 (c) 9 (d) 420 117. For adult education _________ mission was launched in 1998 in India. (a) National Adult education (b) National Technological (c) National Senior Citizen (d) National Literacy 118. According to the latest available data, the bed-population ratio in India is ________ per thousand population. (a) 3.2 (b) 9.5 (c) 1.03 (d) 20.3 119. According to the latest data (March 2009), there are around _________ broadband subscribers in India. (a) more than 6 million (b) more than 3 million (c) more than 2 million (d) more than 5 million 120. The rate of inflation was lowest in _________. (a) fifties (b) sixties (c) seventies (d) eighties 121. In the year _________, the practice of RBI lending to the government through ad hoc treasury bills was given up. (a) 1951 (b) 1997 (c) 1991 (d) 2001 280 Common Proficiency Test (CPT) Volume - I © The Institute of Chartered Accountants of India 122. TRAI is the regulatory authority for _______ in India. (a) railways (b) telecom (c) banking (d) secondary market 123. The FRBM Act aims at reducing gross fiscal deficit by _______% per annum. (a) 2% (b) 1% (c) 0.5% (d) 3% 124. In terms of overseas shipping tonnage, India ranks _______. (a) 67th (b) 23rd (c) 100th (d) 20th 125. GNP at market price minus _______ is equal to GDP at market price. (a) depreciation. (b) direct taxes (c) subsidies (d) net income from abroad 126. About 96 percent of the sick units in India are _______ units. (a) small (b) big (c) banking (d) trading 127. Excise duties are levied on _______. (a) incomes of the individual (b) production of goods (c) export and import of goods (d) incomes of the corporate 128. Points outside the production possibilities curve are _______. (a) attainable with the existing technology. (b) not attainable with the existing resources and technology. (c) inefficient. (d) suggest that the country’s factors are underemployed. 129. Price theory is an important constituent of _______ Economics. (a) Micro (b) Macro (c) Developmental (d) Welfare 130. For _______ goods increase in income leads to increase in demand (a) Abnormal (b) Normal (c) Inferior (d) Superior 131. Economic laws are essentially _______ and _______ . (a) hypothetical, conditional (b) hypothetical, unconditional (c) neutral, rigid (d) neutral, flexible Common Proficiency Test (CPT) Volume - I 281 © The Institute of Chartered Accountants of India MODEL TEST PAPER - 10 132. Inductive method is _______ based on the observation of particular facts. (a) never (b) seldomly (c) alternatively (d) always 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. If Figure 1 represents the market for Perk (chocolates), the initial equilibrium is at the intersection of S and D . The new equilibrium if there is an increase in the price of Dairy 1 1 milk (chocolates) will be: (a) Point 3 (b) Point 5 (c) Point 4 (d) Point 2. 134. In Figure 1 (which represents the market for Perk (chocolates), the initial equilibrium is at the intersection of S and D . The new equilibrium if there is rapid economic growth but cost 1 1 of labour producing Perk also rises: (a) Point 3 (b) Point 9 (c) Point 2 (d) Point 6 135. In Figure 1(which represents the market for Perk), the initial equilibrium is at the intersection of S and D . The new equilibrium if there is a health scare about the effect chocolates may 1 1 have is: (a) Point 2 (b) Point 9 (c) Point 3 (d) Point 6 282 Common Proficiency Test (CPT) Volume - I © The Institute of Chartered Accountants of India 136. In Figure 1(which represents the market for Perk), the initial equilibrium is at the intersection of S and D . Assuming that there is a new technology for producing Perk, the new equilibrium: 1 1 (a) Point 8 (b) Point 7 (c) Point 3 (d) Point 6 137. In Figure 1(which represents the market for Perk), the initial equilibrium is at the intersection of S and D . Assume that there is an increase in the productivity and at the same time the 1 1 price of 5 star (chocolates) falls. The new equilibrium will be: (a) Point 2 (b) Point 9 (c) Point 3 (d) Point 6 138. What is the average total cost in producing 20 units, if fixed cost is Rs.5000 and variable cost is Rs. 2/-? (a) 250 (b) 260 (c) 258 (d) 252 139. For producing 100 units Total variable cost is Rs.500 & Total fixed cost is Rs.1000.Compute Average Cost. (a) 10 (b) 15 (c) 5 (d) 20 Read the following data and answer questions 140-143. Following are the cost components: Direct material Rs. 2,500 Indirect material Rs. 1,500 Indirect labour Rs. 2,000 Direct labour Rs. 1,400 Management expense Rs. 3,000 Promotional expense Rs. 2,700 Indirect expense Rs. 1,500 Direct expense Rs. 1,000 140. From the above data compute Prime cost. (a) 6300 (b) 2900 (c) 4900 (d) 5300 141. From the above data compute Production cost. (a) 7600 (b) 6900 (c) 9900 (d) 8700 142. From the above data, compute Cost of goods sold. (a) 9900 (b) 11500 (c) 12600 (d) 12900 Common Proficiency Test (CPT) Volume - I 283 © The Institute of Chartered Accountants of India MODEL TEST PAPER - 10 143. From the above data, compute cost of sales. (a) 15,500 (b) 15,600 (c) 12,900 (d) 14,800 144. If in the above case, sales are Rs. 16500, then compute profit? (a) Rs. 1,000 (b) Rs. 1,200 (c) Rs. 900 (d) Rs. 800 145. Compute national income when population is 3 crore and per capita income is Rs. 2,000. (a) Rs. 6,000 crore (b) Rs. 2,000 crore (c) Rs. 3,000 crore (d) Rs. 10,000 crore 146. What is the price elasticity of demand when, price changes from Rs.10 to Rs.12 and correspondingly demand changes from 6 units to 4 units? (a) 0.833 (b) 1.6 (c) 2.2 (d) 1.833 147. What is the new quantity demanded when price elasticity is 1 and price changes from Rs.15 to Rs.10 and the original quantity demanded was 10 units? (a) 15 units (b) 20 units (c) 8 units (d) 12 units 148. What is the original price of a commodity when price elasticity is 0.71 and demand changes from 20 units to 15 units and the new price is Rs. 10? (a) Rs. 15 (b) Rs. 18 (c) Rs. 20 (d) Rs. 8 Read the following table and answer question number 149 -150. Table 3 Number of products Total utility Marginal utility 0 0 - 1 1800 2 3400 3 4800 4 6000 5 7000 6 7800 7 8400 8 8800 9 9000 284 Common Proficiency Test (CPT) Volume - I © The Institute of Chartered Accountants of India 149. What is marginal utility when consumption increases from 4 units to 5 units? (a) 3000 (b) 1200 (c) 1000 (d) 1500 150. What is marginal utility when consumption increases from 8 units to 9 units? (a) 3000 (b) 200 (c) 2000 (d) 1500 SECTION – D : QUANTITATIVE APTITUDE(50 MARKS) 151. The correlation is said to be positive (a) When the values of two variables move in the same direction. (b) When the values of two variables move in the opposite direction. (c) When the values of two variables would not change. (d) None of these. 152. The point of intersection between the lines 3x+ 4y = 7 and 4x –y = 3 lie in the (a) 1st quadrant. (b) 2nd quadrant. (c) 3rd quadrant. (d) 4th quadrant. 153. If P is a set of natural number then P∩∩∩∩∩P’ is (a) φ (b) Sample Space. (c) 0 (d) (P∪P’)’ 154. Three coins are tossed. What is the probability of getting at least two tails? (a) 1/2 (b) 1/3 (c) 1/4 (d) None of these. 155. The result of ODI matches between India and Pakistan follows (a) Binomial distribution. (b) Poisson distribution. (c) Normal distribution. (d) (b) or (c). 156. If in a binomial distribution mean = 20, Standard Deviation = 4 then n is equal to (a) 80 (b) 100 (c) 90 (d) None of these. 157. The difference between sample Standard Deviation and the estimate of population Standard Deviation is negligible if the sample size is (a) Small. (b) Moderate. (c) Sufficiently large. (d) None of these. Common Proficiency Test (CPT) Volume - I 285 © The Institute of Chartered Accountants of India MODEL TEST PAPER - 10 158. Coefficient of determination is defined as (a) r3 (b) 1– r2 (c) 1+ r2 (d) r2 159. Regression coefficient is independent of the change of (a) Scale. (b) Origin. (c) Both origin and scale. (d) Neither origin nor scale. 160. If A and B are mutually exclusive events and P(A) = 0.3 and P(B) = 0.4, find P(A’). (a) 0.7 (b) 0.3 (c) 0.6 (d) None of these. ax+b 161. If y = f(x) = then f(y) is _______ . ax–a (a) –x (b) 2x (c) x (d) x2 162. Value of 3P is _______ . 2 (a) 6 (b) 1 (c) 3 (d) 2 163. In binomial distribution ‘p’ denotes probability of _______ . (a) Success. (b) Failure. (c) Both of these. (d) None of these. 164. First deciles is the value for which one-tenth of the given observations are _______ D and 1 the remaining nine-tenth observations are _______D . 1 (a) Less than or equal to, More than or equal to (b) More than or equal to, Less than or equal to (c) Less than, More than (d) More than, Less than 165. _______ may be defined as the minimum value and the maximum value, the class interval may contain. (a) Class mark (b) Class limit (c) Both of the above (d) None of the above 166. In case of _______, plotted points on a scatter diagram would be equally distributed without depicting any particular pattern. (a) Zero correlation (b) Positive correlation (c) Negative correlation (d) Simple correlation 286 Common Proficiency Test (CPT) Volume - I © The Institute of Chartered Accountants of India 167. Let f(y)=xx2 then f’(y) is _______ . (a) x3 [x2 +3x.log x] (b) xx3[x2 + 3x. log x] (c) [x2 – 3x. log x] (d) None of these 168. The colour of a flower is an example of _______ . (a) An attribute (b) A variable (c) A discrete variable (d) A continuous variable 169. A quantitative characteristic is known as _______ . (a) An attribute (b) A variable (c) Both of above (d) None of above 170. Data collected on the weight of a group of a students after recording their weights with a weighing machine are _______. (a) Primary data (b) Secondary data (c) Discrete data (d) Continuous data 171. If in a binomial distribution Mean = 20, Standard Deviation = 4 then p is equal to: (a) 2/5 (b) 3/5 (c) 1/5 (d) 4/5 172. The variables x and y are related by 6x+ 7y = 81 and median of x is 10. What is the median of y? (a) 2 (b) 3 (c) 4 (d) 5 173. Find D for the following observations. 6 41, 28, 45, 25, 60, 37.5, 37.5, 40, 65, 32.5 (a) 39.60 (b) 40.60 (c) 41.60 (d) 42.60 174. For a moderately skewed distribution of marks in statistics for a group of 100 students, the mean mark and median mark were found to be 50 and 40. What is the modal mark? (a) 15 (b) 20 (c) 25 (d) 30 175. If y = 5+7x and mode of x is 4, what is the mode of y? (a) 28 (b) 33 (c) 4 (d) 43 Common Proficiency Test (CPT) Volume - I 287 © The Institute of Chartered Accountants of India MODEL TEST PAPER - 10 176. Following are the marks of 10 students : 82, 79, 56, 79, 85, 95, 55, 72, 70, 66 . Find coefficient of range. (a) 25.66 (b) 26.67 (c) 27.66 (d) 28.67 177. A card is drawn from a pack of 52 cards. What is the probability that it is neither a black card nor a king? (a) 6/13 (b) 5/13 (c) 1/6 (d) None of these. 178. Refer following table Frequency distribution of weights of 16 students Weight in kg. No. of students (Class interval) (Frequency) 44 – 48 4 49 – 53 5 54 – 58 7 Total 16 Find Relative frequency for the third class interval. (a) 7/16 (b) 7/4 (c) 16/7 (d) None of the above. 179. If the coefficient of correlation between two variables is 0.6, then the percentage of variation unaccounted for is (a) 60% (b) 40% (c) 64% (d) 36% 180. A coin is tossed two times. The toss resulted in one head and one tail. What is the probability that the first throw resulted in tail? (a) 1/3 (b) 1/4 (c) 1/2 (d) None of these. 181. A survey shows that 68% of women like apples, 74% of women like orange. What percentage like both (a) 12% (b) 6% (c) 21% (d) 42% 288 Common Proficiency Test (CPT) Volume - I © The Institute of Chartered Accountants of India 182. ∫∫∫∫∫e3x+5 dx is equal to e3x+5 e3x (a) +c (b) +c 3 5 −e3x+5 (c) +c (d) None of these. 3 183. Sum of the series 1, 3, 9, 27 ...nth term is 364. The number of terms is (a) 5 (b) 6 (c) 11 (d) None of these. 184. In how many ways can 4 single seated rooms in a hostel be occupied by 3 students? (a) 24 (b) 12 (c) 4 (d) 6 1 1 + 185. The value of is log (ab) log (ab) a b (a) 0 (b) 1 (c) –1 (d) None of these. 186. The difference between the compound interest and the simple interest on Rs. 1200 for 4 years at 10% p.a. is: (a) Rs. 77 (b) Rs. 480 (c) Rs. 80 (d) Rs. 557 187. Differentiate y w.r.t. x when y=(x2 – 2x) (x2+1) (a) 4x3+ 6x2 – 2x+ 2 (b) 4x2 – 6x + 2 (c) 4x3 – 6x2 + 2x – 2 (d) None of these. 2x2 +6x–5 188. If f(x) = is to be discontinuous then 12x2 +x–20 (a) x = 5/4 (b) x = 4/5 (c) x = – 4/3 (d) None of these. 189. Find the arithmetic mean between 4 and 10 (a) 14 (b) 7 (c) 3 (d) 6 Common Proficiency Test (CPT) Volume - I 289 © The Institute of Chartered Accountants of India MODEL TEST PAPER - 10 190. Compute 8C 7 (a) 8 (b) 7 (c) 6 (d) None of these. 191. Find the distance between the pair of points p (–5, 2) and q (–3, –4) (a) 2 10 (b) 10 2 (c) 2 (d) 10 192. What will be the final value of investment for the principal value of Rs. 80,000 for 4 years @ 10% p.a. rate of interest? (a) Rs. 83,200 (b) Rs. 112,000 (c) Rs. 82,300 (d) None of these. 193. 184 x–9/8 is expressed as 184 (a) –184x9/8 (b) x−9/8 184 (c) x9/8 (d) x9/8 ∫ 194. The value of x x dx is −2x5/2 2x5/2 (a) +c (b) +c 5 5 (c) x5/2 + c (d) None of these. 3 x 2 -27 195. Evaluate lim x→9 x-9 9 (a) 3 (b) 2 3 (c) (d) 9 2 196. Find the mean proportion between 5.25 and 8.9 (a) 8.63 (b) 6.83 (c) 9.23 (d) None of these. 290 Common Proficiency Test (CPT) Volume - I © The Institute of Chartered Accountants of India 197. If a : b = c : d = 3 : 5, then what are the values of ad : bc is (a) 3:5 (b) 5:3 (c) 1:1 (d) None of these. 198. The solution set of the equations is 2x + 3y = 0 and x + 2y=0 (a) 2, 2 (b) 1, –1 (c) 0, 0 (d) –3, 3 dy 199. The curve 4y = ux2+v passes through the point p at (2, 3) and = 4 this point ‘p’. So the dx values of u and v are (a) u = 2, v = 2 (b) u = –4, v = –4 (c) u = 4, v = 4 (d) None of these. 200. Determine the first term of an A.P. with common difference 3 & 7th term being 11 (a) –7 (b) 7 (c) 6 (d) 5 (cid:2)(cid:2)(cid:2) Common Proficiency Test (CPT) Volume - I 291 © The Institute of Chartered Accountants of India © The Institute of Chartered Accountants of India