General knowledge questions and answers

41. Given net profit Rs. 1,50,000, preference dividend Rs. 25,000 taxes Rs. 10,000, Equity capital (Rs.10 each), Rs. 10,00,000 what is the Earning per share (EPS)–
(A) Rs. 1.50 (B) 0.25 (C) Rs. 1.15 (D) Rs. 1.75 (Ans : C)
42. The crucial determinant of the size of the market is–
(A) monetary expansion (B) opportunity for investors
(C) productivity (D) savings (Ans : B)
43. Mr. Pawan was born on April 18, 1986 in India and later on he took the citizenship of USA. Neither his parents nor his grand parents were born in undivided India. In this case Mr. Paw an shall be–
(A) person of Indian origin (B) Citizen of India
(C) A foreign national (D) None of the above (Ans : C)
44. Business means–
(A) Commerce (B) Industry and Commerce
(C) Trade and Commerce (D) Selling and buying of goods (Ans : B)
45. The agricultural income is exempt under the following section of IT Act–
(A) Section 15 (B) Section 6 (C) Section 10 (D) Section 10 (1) (Ans : D)
46. A firm has a variable cost of Rs. 100 at 5 units of output. If fixed cost is Rs. 40 what will be the average total cost at 5 units of output–
(A) Rs. 28 (B) Rs. 60 (C) Rs. 12 (D) Rs. 140 (Ans : A)
47. Cost volume profit analysis is based on several assumptions which of the following is not one of these assumptions–
(A) the sales mix of product is constant
(B) inventory, quantities change during the year
(C) the behaviour of both revenue and cost is linear throughout the relevant range
(D) factor prices e.g., material price and wage rates remain unchanged (Ans : B)
48. For which of the following purpose, share premium can be used?
(A) In writing off the discount on debentures of the company
(B) In writing off the preliminary expenses of the company
(C) Issuing bonus shares (D) all of the above (Ans : D)
49. The most appropriate measure of a country’s economic growth is its–
(A) gross domestic product (B) net domestic product
(C) net national product (D) per capita real income (Ans : D)
50. In case of women assessee her agricultural income of Rs. 8000 shall be included in her total income if her total income is more than the following–
(A) Rs. 1,35,000 (B) Rs. 1,50,000
(C) Rs. 2,00,000 (D) Rs. 2,25,000 (Ans : C)
51. Given fixed long term liabilities Rs. 5,00,000 fixed assets Rs. 12,00,000, capital Rs. 8,50,000, current liabilities Rs. 2,50,000 current assets Rs. 4,00,000. Solvency ratio is–
(A) 5: 12 (B) 5: 16 (C) 15: 17 (D) 10: 24 (Ans : C)
52. Which of the following is an equation?
(A) Assets = Capital (B) Assets = Liabilities – Capital
(C) Assets = Liabilities + Capital (D) None of the above (Ans : C)
53. All the following are examples of fixed costs except–
(A) insurance fee (B) rent payments
(C) director’s fees (D) license’ fees on a product sold (Ans : D)
54. The average value of –4, –3, 0, 3, 4 is–
(A) –1 (B) 2 (C) 3 (D) 0 (Ans : D)
55. When funds from operations are Rs. 42,000 and amount of depreciation on plant and machinery is Rs. 5000. What is the amount of net profit.
(A) Rs. 37000 (B) Rs. 42000
(C) Rs. 47000 (D) Cannot be computed (Ans : A)
56. Bill discounted with a bank is–
(A) contingent liability (B) current liability
(C) current assets (D) None of the above (Ans : A)
57. Whenever data deals with speed, distance and time then the best average is–
(A) median (B) mode (C) geometric mean (D) harmonic mean (Ans : D)
58. A firm which makes boats has fixed cost of Rs. 2,60,000 per month. The product sells for Rs. 35,000 per boat and the variable cost of production is Rs. 15,000 per boat. The boat yard can manufacture 20 boats each month. What is the firm’s break even output?
(A) Cannot be worked out from the data (B) 13 boats
(C) Rs. 45,000 (D) 20 boats (Ans : B)
59. Interim dividend is shown–
(A) in P and L A/c (B) in P and L appropriation A/c
(C) on the asset side of balance sheet (D) on the liability side of the balance sheet (Ans : B)
60. A minor’s income shall be included in the guardian assessee’s income if it–
(A) exceeds Rs. 1500 (B) Rs. 1500
(C) minor’s whole income
(D) minor’s whole income will be exempted (Ans : A)