404e4

Competitive
'f
est for
Promotion to the Position of Manager Gr.IV
in Kerala Statc Financial Enterprises Limited
PAPER II
Date: 03'd November 2013 Time 12 Noon to 01.30 pm
Total Marks : 100
Choose the best answer from among the options given under each question. AII questions cany
equal marks. There are four alternative answers lor every question. For each wrong answer one
fourth (0.25) of the marks assigned to that question will be deducted as penalty. If a candidate
gives more than one answer, it will be treated as wrong even if one of the given answers
happened to be correct; there will be same penalty of a wrong ans\\'er. Ila question is left blank,
there will be nc penalty for that question. Candidates may please indicate their answers by
darkening the bubbles against the queslion numbers in the OMR sheet provided, with black ink
ball point pen. Plcase read the instructions in the OMR sheet carefully to understand the correct
method of marking answers.
I . The Turnover and Gross Profit of a business for two vears are
20lt
1,80,000
45,000
2012
3,60,000
72,000
Ccnrnr:ti,-rr the operational efficiency of the business
A.lng e ascd R- Decreased C. Remain the same D. Can't say
2, Calculate the value of closing stock from the following
Tumover
Gross Profit
Opening Stock
Purchase
Sales
Gross Profit on cost
Due to fire. stock costir]g
claim ol < 8.000/-
< 60,000/-
t 90,000/-
T 1,20,000/-
33%%
< 25.000 nas destroycd and iusurance company admitted a
A. {40,000/- B. < 35,000/- c. {55.000/- D <60.000/-
3. The current ratio of a company is 2:1. Which of the fbllowing transactions would
in.rprove the current ratio?
i. Repayment of a cunent liability
ii. Purchasing ofgoods on credit
iii. Sale of office fumiture
iv. Payment of Dividend
v. Purchase of goods for cash
A.(i), (iii) & ( iv) B. (ii) & (v)
C. (ii), (iv) & (v) D. All olthe above
4. Working Capital Gap
A. Shows the degree of the firm's reliance on long term bank finance
B. Shows the degree ofthe company's reliance on shareholders funds
C. Is equal to current assets less current liabilities other than bank borrowings
D. equal to total current assets
5. Interest coverage ratio of6 indicates
A. Sales are six times of interest
B. Profit after tax is 6 times of interest
C. Profit before tax is 6 times of interest
D. Eamings before interest and tax is 6 times of interest
6. The current ratio and quick ratio of the Company AB Ltd are nearly the same. This
suggest that
A. The company has got a sizeable investment in inventory
B. The company is a highly profitable one
C. The quick assets ofthe company are low
D- The cornpany has got a low investment in inventory
7. Which ofthe following change(s) does/ do not appear in a Cash Flow Statement?
A. Issue of Equity Shares
B. Conversion ofall Fully convertible Debentures into Equity Shares
C. Bonus issue of Equity Shares
D. Both (B) & (C) above
8. All are internal sources of short
-
term working capital, except:
A. Depreciation funds B. Trade Credit
C. Accrued Expenses D. Provision for Taxation
9. Increase in the amor.urt ofcreditors results in
A. Decrease in cash B. No change in cash
C. Decrease in liability D. Increase in cash
10. Asok has the following rvorking capital ratios
2012 20ll
Cr"rrrent Ratio 1.2:l 1.5:1
Debtors Velocity 75 days 50 days
Creditors Velocity 30 days 45 days
Stock Velocity 42 days 35 days
Which of the following statement is correct?
A. Asok's liquidity and working capital has improved in 2012
B. Asok is receiving cash from debtors more quickly in 2012 than in 2011
C. Asok is taking longer to pay suppliers in 20i2 than in 2011
D. Asok is suff'ering from a worsening liquidity positi on in2012
11. The ratio which is calculated to
judge
a firm's ability to pay its current liabilities within a
month or immediately is
A. Cunent Ratio B. Working Capital Tumover Ratio
C.
Quick
Ratio D. Debtor Tumover Ratio
12. The current Ratio of AB Ltd is 3.5:1 and its Working Capital amounts to t 1,00,0001.
The amount of Current Assets and Current Liabilities are:
Current Assets Current Liabilities
A. <1,40,000/- <40,000/-
B. < 3,s0,000/
c. <2,80,000/- <80,000/-
D. <1,00,000/- <3,50,000/-
13. The ratio *4rich establishes the relationship between fixed interest bearing securities and
equitl shares ofa comprny i.
A. Debt- Equity Ratio B. Proprietary Ratio
C. Acid Test Ratio D. Capital Gearing Ratio
14. Raju earned a profit of < 1,50,000/- lor the year 2012-13. Butatthetimeof audit, it was
found that he purchased a machinery on 1.7.2012 lor {30,000/- and charged it as a
revenu. expense. The auditor advised him to rectify the error and to charge depreciation
@15%
on it. Tl.re correct profit after rectification will be
A. t 1,77,s00/- B. { 1,80,200/- c { 1,80,000/- D. { 1,50,000/-
i5. Organizational decisions can be categorized into programmed and non programmed
decisions. Which of the following is a non- programmed decision?
A. Setting sales quota B. Revising employee compensation
C. Launching a new product D. Promotion ol supervisors
16. Which of the following best describes an organization's mission statement ?
A. A statement of activities for the year ahead
B. An expression ol organizational purpose
C. A list ofkey business objectives
D. A summary of the organization's five year plan
17. -------identifies the order of activities to be performed in order to achieve a particular
goal.
A. Budgeting B. Linear programming
C. Break-even analysis D. Scheduling
1 8. Which ol the lbllowing is not a function of budgeting?
A. Controlling B. Decision making
C. Motivating D. Planning
19. A Manager at the first level of management is known as a /an
A. Top executive B. Middle manager
C. Assembly line rvorker D. Supervisor
20. Controlling requires managers to:
A. Decide r','here decisions will be made B. Choose goals
C. Compare performance against the plan D. Obtain incentives
21 . A Manager wl.ro is responsible for human resources is a manaQer
A. Corporate genelal
C. Functionai
22. Conceptual skills are paramount in
A. Top management
limit and period etc.
A. OD Control
B. Business level general
D. Frontline
B. Interest Control
is for controlling the loan amount
--positions.
B. Mid level management
C. Functional management D. Frontline management
23. In Suvarna Akshaya Overdraft of BAS
C. Interest Control Change D. None ofthe above
24. The fbllorving is not true *'ith CSDT in KSFE Branch Automation System (BAS)
A. CSDT Register should be created before starting the Chilty Payment.
B. In the CSDT, Only the liability amount of the chitty can be deposited.
C. The period oICSDT should be below the completed months of transmission date
D. CSDT can be opened through General Transfer or any other mode
25. In Flexi Trade Loan of BAS software, rvhich one is the suitable options as given below
for controlling the loan amount eligibility
A. Control Information. B. Loan Register
C. interest Control D. Intelest Control Change
26. Software instructions intended to satisfy a user's specific
processing
needs are called
--
..---.-.-.----?
A. Operating System
C. Documentation
27. The ascending order ola data hierarchy is
A. Bit-byte-record-fi eld-fi le-database
B. Byte-bit-fi eld-record-fi le-database
C. Byte-bit-record-fi le-fi eld-database
D. Bit-byte-fi eld-record-fi le-database
28. What is the control unit's function in the CPU?
A.To decode program instructions
B. To transfer data to primary storage
C. To perform logical operations
D. To store program instructions
29. The technique ofplacing software or programs in a ROM Semiconductor chip is called
A. PROM B. EPROM C. Firmware D. Microprocessor
30. Compared with Secondary storage, Primary storage is
A. Sloq,and inexpensive B. Fast and inexpensive
C. Fast and expensive D. Slon' and expensive
3 1 . l.inkage betrveen the CPU and the users is provided by
A. Peripheral devices B. Storage
C. Control Unit D. Software
32. The Computer device primarily used to provide hard copy is the ---------------
A. CRT B. Line Printer
C. Compr"rter Console D. Card reader
33. \\rhat is the commonly used unit 1br measuring thc speed of data transmission?
A. Bytes per second B.Baud
C. Bits per Second D. Eithcr (B) or (C)
34. The larger the RAM of a Computer, the laster its processing speed is, since i1 eliminates -
A. Need of ROM B.Need lor extemal memory
C. Frequent disk I/o's D.Need for wider data path
B. Language Processors
D. Application Software
35. A Computer virus is a soltuale program which is basically
A. Destructive of data B. An information diorder
C. Non sellreplicating in nature D. Memory resident
36. What is the name ofthe virus program which does not have any Pre-trigger phase?
A. Trojan B. Bomb
C. Worm D. Tapeworm
37.What is not true with KSFE Software CAS ?
A. Web based software B. Centralized Application Software
C. Customized Application Software D. Control Access Software
38. Among the following, a major function of CAS is
A. Receiving branch wiil get a printed copy of advice lrom CAS lor filing purpose
B. The Inter Branch transactions can not be viewed at branches.
C. IB originating branches will dovn'nload the Inter Branch transaction details to CAS.
D. None of the above
39. IGRP stands for
A. Interior Gateway Routing Protocol
B. Intemet Gateway Routing Protocol
C. Intemet Gigabit Routing Protocol
D. Interior Gigabit Routing Protocol
40. In the digital signature technique, the receiver ofthe message uses ----------------to creatc
plain text
A. Her own sector key B. Her on'n private key
C. Her own public ke1' D. The sender's public key
4i.ln KSFE, the loss cn saie i aiiciion ofpledged gold ornament
A- Should be nritten off
B. Should be credited to Gold Loan Loss Recoverable A-lc
C. Should be debited to Gold Loan Loss A/c
D. Should be debited to Gold Loan Loss Resoverable A/c
42. A photocopier purchased in March 20XX for < 2,00,000/-. Payment was mede on 5rr'
March 20XX and the machine rvas delivered in office on l0'n March 20XX. The same
was installed on 15tr'march 20XX and put to use on 2011' March 20XX. In KSFE 20XX
year final accotmls, the depreciation for the above asset is to be calculated for -------------
davs.
A- 1 I days
C. 22 days
B.21 days
D.16 days
43. On 31" lvlarcl.r. the foreman's investment in statutory tickct account of KSFE should
havea..
A. Credit Balance B. Debit balance
C. Nil balance D. Anyone of the above
44.Capital introduced in the beginning by Ram is {40,0001. Further Capital introduced
during the year is { 1,000/-. Drawings is t200/- per month and the closing Capital is
{ 53, 600/- The amount of profit or loss for the year will be --------
A.
(
20,000/- profit
C. { 15.000 profit
B. { 5,000 Loss
D. T 5,000 profit
45. While preparing Fund Flow Statement, decrease in Working Capital is trcated as ---------.
A. An application of lunds B. A source ol funds
C. Both an application and source D. None ofthe above
46. Balance as per Cash Book is { 5,000/-. Cheque issued but not presented for payment
t2,000 and cireques sent for collection but not collected <1,500/-. The Bank had
s.rongl-v debited the account of firm by { 20/-. Balance as per Pass Book will be --------
A. t5,s80/- B. {4,520/- C. <5,520/- D. <s,480/-
47. If average stock is <50,000/- closing stock is t10,0001 lower than the value of
Opening Stock. Closing Stock will be
---*--
A. <45,000/- B. { 16,000/- c. < 18.000/- D. <20,000/-
:i8. rii'Lrile
plrjfaiirg iis fiiiatcial statement, a company urrder vaiued its closing stock by
T 50.000,/-. What rvill be the effect of this error?
A. The cu|icii1
:l
iar's prr)fit rvill be understated and next year's profit will be overstated
B.
'lhe
current year's profit u'ill be overstated and next year's profit will be understated
C. The current year's profit be overstated and there will be no effect on next year's profit
D. The profit rvill not be affected
49. Which of the following statement best describes Curent Assets?
A. Assets u'hich are currently located on the business premises
B. Assets rdrich are used to conduct the organization's current business
Cl. Assets rvhich irrc expected to be convefied into cash in the shofi tem.r
D- Assets r,vhich arc not expected to be converted into cash in the shorl tcrm
50. Long term solvenoy is indicated by
A. Liquidity Ratio B. Debr Equity Ratio
C. Interest coverage Ratio D. Retum on capital Employed
51 . A Gross Profit Ratio rnay not indicale
A. Earning pon'er
B. The efficiency ofproduction
C. The efficiency olpricing D The gap belween net sales and cost of
goods sold
52. Which of the following is the problem encountered in financial statement analysis?
A. Development of benchmarks B. Window drcssing
C. Price level changes
D. All ofthe abovc
53. llthe current ratio is less than I then it can be definitely said that -
A. The net working capital is negative B. f'he net working capital is positive
C. The inventories are inadequate D. Cash in hand is inadequate
54. Which of the following statement is true?
A. Liquidity implies a firm's ability to pay its debts in the long run
B. Working Capital gap is equal to current assets plus total current liabilities
C. The number of days it takes to collect accounts receivables is known as averagc
collection period
D. Lesser the inventory tumover ratio, higher the efficiency of inventory management
55. A decrcase in the provision for doubtful debts results in?
A. An increase in liabilities B. A decrease in Working Capital
C. An increase in net profit
D. A decrease in net profit
56. The debit side of a Trial Balance totals t 80001 more than the credit side. Which one ol
thc fbllor.ving errors would fully account lbr the diflerence ?
-4.
74,00C/- paid lor repairs ol plar.rt and machinery has been correctly entered in the
{lash Book and crcdited to Plant & Machinery A/c
R. Discoiint received < 4,000/- has been debited to Discount Allorved A/c
C, A receipt of t 8,0001 lor commission receivable has been omitted from the book
D. A petty cash balance of t 8,000/- has been omitted lrom the Trial Balance
57. A business can make a profit and yet have a reduction in its bank balance. Which one of
the lollowing might cause this to happen?
A. The sale ofnon-current assets at a loss
B. The lengthening olthe period of credit given to customers
C. The lengthening ofthe period ofcredit taken from suppliers
D. None of these
58. Consider the fbllor.ving two statements and choose the answer
-
(i) A debit entry in the cash book will increase an overdraft in the accounts
(ii) A debit entry in the cash book will increase a bank balance in the accounts.
A. Both true B. Both false
C. (i) True and (ii) False D. (i) False and (ii) True
59. Erors of Principle and Enors of l'ransposition are two types of common errors. Which of
the lollowing correctly states whether or not these errors will be revealed by preparing a
Trial Balance?
Errors of Principle
A. Will not be revealed
B. Will not be revealed
C. Will be re-revealed
D. Will be revealed
free samples is debited to 60. Goods distributed as
A. Drawings A/c
C. Sales A/c
61. Loss caused by theft
Errors of Transposition
Will not be revealed
Will be revealed
Will not be revealed
Will be revealed
B. Adverlisemenl A./c
D. Trading A/c
of cash b1' cashier after business hours is
B. Revenue Loss
D. None of these
B. Seriousness
D. Sincerity
62. Sales for { 5,0001 was recorded as purchase. The effect of this enor will be
A. Gross Profit will decrease by t 10,0001
B. Gross Profit will increase by t 5,0001
C. Gross Profit will decrease by { 5,0001
D. Gross Profit will increase by t 10,0001
63. G-rori business letteis ari ci::,i:,.:lciizeil by the follou'ing personal quality ofthe writer:
A. Capital loss
C. Delerred revenue loss
A. Formality
C. Humour
64. Which of the following is not a guideline for writing a business letter?
A. Remember that you are often writing for multiple audiences
B. Write so that your letter is clear, concise, professional and friendly
C. State your purpose at the end of your document
D. Proofread for grammar all documents you send out
65. Which of the following is corect about hrll block-style business letters?
A. Paragraph indentat ion'
B. All parls stafi a1 the le11 rnargin
C. Return address appears on the right halfofthe page
D. Signature appears on the right hallof the page
66. which of the lollowing lorms ol decision making involves seeking expert opinion
iteratively through anonymous parlicipation?
A. Brain storming B. Nominal Group C. Delphi Group D. Interactive group
67. Mr. Abhinav Mishra
,
a manager at KaNy Transportation Ltd., manages a team of 16
employees who belong to different cadres. He always treats all his employees in the
same manner irrespective olthe cadre they belong. which of the following principles
of
Fayol did Mr. Mishra adopt?
A. Disciplinc
C. Espirit de corps
B. Initiative
D. Equity
68. on the basis of their frequency of use, plans are divided into two categories
-
single use
and standing plans. These plans are of various types. Which of the foltowing types of
plans. heJp in simpliSing and str.eamlining the administrative activities of an
organization?
A. Prograrns B. Budgets C. Rules D. Procedures
69. The Management by Objectives (MBO) process not only gives subordinates a sense of
direction, but it also allows them to
A. Dictate their orvn terms and conditions
B. Evaluate their own progress
C. Create tire vision of organization
D. Parlicipate in appraisal oftheir seniors
70. SWOT analysis evaluates the firnr's internal strengths and weaknesses and the impact of
environmental opportunities and threats. Which of the following best describes 'threat'
in SWOT analysis?
A. An internal characteristic that has capacity to improve the organization's competitive
situation
B. An environmental condition that an organization can exploit to improve its
competitiveness
C. An environmental condition that can adversely affect the organization's competitive
ability
D- A powerful strategy that is supported by the cornpetitive valuable skills and experlise
in key areas
10
71. In which of the following decision making techniques, group members rank the various
alternatives and decide on the best alternative?
72. Which of the following are general standards of behaviour that provide guidelines on
how much work should be done, the code ofbehavior to be lollowed etc.?
A.Rules B. Procedures C. Policies D. Norms
73. Managers perform a number of roles in an organization. Which of the lollowing roles
air.us to maintain a link between the organization and its extemal environment?
A. Delhi method
C. Nominal group
A. Figure head
C. Liaison
B. Interacting group
D. Brain storming
B. Leader
D.Monitoring
74. Zero-base Budgeting (ZBB) is based on a system where each function
-
old or new
-
must be
justified
in its entirety each time a new budget is formulated. ZBB has several
benefits i.r'hich include all of the following except
A. Effective allocation of resources
B. Improved effectiveness of performance audit
C. Lnproved productivity and cost effectiveness
D. Better focus on organizational objectives
75. Groul decision making has ceftain advantases over individual decision-making. Which
of the Ic'llo\','ing statements is not tlue with regard to group decision- making?
A. It allows pooling of knowledge and information
B. It's source ofpersonnel development
C. It discourages risk taking
D. It's time consuming and costly
71