December 2021 GSET Commerce Solved Paper, Paper – II, Subject Code: 17

December 2021 GSET Commerce Solved Paper

Paper – II (Commerce)

Subject Code: 17

Marks: 100

Time: 120 Minutes (2 Hours)

1. Who is known for the concept of ‘Bounded Rationality’ in Decision-making?

(A) Herbert Simon.

(B) Peter Drucker.

(C) Henry Fayol.

(D) Alfred Chandler.

Ans: (A) Herbert Simon.

2. Which among the following was the first bank to open a branch on foreign soil?

(A) State Bank of India.

(B) Bank of India.

(C) Bank of Punjab.

(D) Allahabad Bank.

Ans: (B) Bank of India.

3. Which of the following criteria relates to consumers seeing the brand association as personality relevant to them?

(A) Deliverability.

(B) Authenticity.

(C) Desirability.

(D) Differentiability.

Ans: (C) Desirability.

4. In case of amalgamation in the nature of merger:

(A) Accounting is made by pooling of interest method.

(B) Accounting is made by purchase method.

(C) Accounting is made considering the same as slump sale.

(D) It is considered as hostile takeover.

Ans: (A) Accounting is made by pooling of interest method.

5. For issuance of ADR

(A) The Indian company directly issues the same to global investors.

(B) The Indian company issues its shares to reputed financial institution in USA that acts as depository.

(C) The Indian company directly issues the same to UK investors.

(D) The Indian company issues its shares to reputed financial institution in UK that acts as depository.

Ans: (B) The Indian company issues its shares to reputed financial institution in USA that acts as depository.

6. Deduction in respect of royalty income of authors under Section 80 QQB is restricted to

(A) Rs. 25,000 (or) Income from Royalty.

(B) Rs. 50,000 (or) Income from Royalty.

(C) Rs. 2,00,000 (or) Income from Royalty.

(D) Rs. 3,00,000 (or) Income from Royalty.

Ans: (D) Rs. 3,00,000 (or) Income from Royalty.

7. TRIPS came into force in

(A) 1995.

(B) 1996.

(C) 1997.

(D) 1998.

Ans: (A) 1995.

8. What is the minimum amount for RTGS transactions under Retail Internet Banking?

(A) Rs. 5,00,000.

(B) Rs. 2,00,000.

(C) Rs. 10,00,000.

(D) Rs. 1,00,000.

Ans: (B) Rs. 2,00,000.

9. Match the following:

(a) Group behaviour.

(b) Duopoly.

(c) Oligopsony.

(d) Kinky Demand Curve.

(1) Two sellers.

(2) One buyer, one seller.

(3) Paul Sweezy.

(4) Prof. Chamberlin.

 Codes:

(A) (a)-(2), (b)-(3), (c)-(1), (d)-(4).

(B) (a)-(4), (b)-(1), (c)-(2), (d)-(3).

(C) (a)-(1), (b)-(2), (c)-(3), (d)-(4).

(D) (a)-(2), (b)-(1), (c)-(4), (d)-(3).

Ans: (B) (a)-(4), (b)-(1), (c)-(2), (d)-(3).

10. The Monopolistic Advantage Theory of foreign investment was propounded by

(A) Stephen.

(B) Kindleberger.

(C) Hymer.

(D) John Dunning.

Ans: (A) Stephen.

11. Under GST, IGST is levied when

(A) Goods and services are supplied within the State.

(B) Goods and services are supplied between States.

(C) Goods and services are supplied between Union Territories.

(D) Goods and services are supplied within Union Territory.

Ans: (B) Goods and services are supplied between States.

12. For AS-3 on ‘cash flow statements’ the respective

(A) Ind AS number is 3 and it is titled as ‘cash flow statements’.

(B) Ind AS number is 7 and it is titled as ‘statement of cash flows’.

(C) Ind AS number is 3 and it is titled as ‘statement of cash flows’.

(D) Ind AS number is 8 and it is titled as ‘cash flow statements’.

Ans: (B) Ind AS number is 7 and it is titled as ‘statement of cash flows’.

13. Standard Deduction in case of family pension is restricted to _______ (Assume alternate tax regime under Section 115BAC is not opted).

(A) Rs. 30,000 (or) 1/3  of family pension.

(B) Rs. 90,000 (or) of family pension.

(C) Rs. 60,000 (or) of family pension.

(D) Rs. 15,000 (or) 33 % of family pension.

Ans: (D) Rs. 15,000 (or) 33 % of family pension.

14. Who wrote the book ‘I’ m Ok-You’re Ok’?

(A) Thomas A Harris.

(B) Eric Bervie.

(C) A. Wagner.

(D) Fred Luthans.

Ans: (A) Thomas A Harris.

15. With reference to foreign exchange market the function of providing information to market making banks about prices at which there are firm buyers and sellers in a pair of currencies is performed by

(A) Primary price makers.

(B) Secondary price makers.

(C) Brokers.

(D) Price takers.

Ans: (C) Brokers.

16. When a firm looks for new users in groups that might use the product but do not, the firm is using the _______ strategy.

(A) New market segment.

(B) Market penetration.

(C) Geographical expansion.

(D) Product development.

Ans: (B) Market penetration.

17. Under perfect competition when price line (AR) passes through minimum point of AVC curve is called

(A) minimum losses point.

(B) shut down point.

(C) breakeven point.

(D) profit point.

Ans: (B) shut down point.

18. In a structural diagram, who suggested the three ego states of an individual?

(A) Chris Argyris.

(B) Eric Beme.

(C) Tom Peters.

(D) Ennest Dale.

Ans: (B) Eric Beme.

19. Which is the first mutual fund established in India?

(A) SBI Mutual Fund.

(B) Kothari Pioneer.

(C) UTI.

(D) Aditya Birla Sun Life AMC Ltd.

Ans: (C) UTI.

20. In _______ marketing the firm operates in several market segments and designs different products for each segment.

(A) Individual.

(B) Undifferentiated.

(C) Differentiated.

(D) Niche.

Ans: (C) Differentiated.

21. The mean of ten numbers is 58. If one of the number is 40, what is the mean of the other nine?

(A) 54.

(B) 60.

(C) 18.

(D) 56.

Ans: (B) 60.

22. The term ‘Exchange rate regime’ refers to

(A) The mechanism for determining exchange rate at a point in time.

(B) The procedure for determining exchange rate at a point in time.

(C) The institutional framework for determining exchange rate at a point in time.

(D) The mechanism, procedures and institutional framework for determining exchange rates at a point in time and change in them over time.

Ans: (D) The mechanism, procedures and institutional framework for determining exchange rates at a point in time and change in them over time.

23. A resident non-corporation assessee can claim deduction under Section 35 D for Amortization of preliminary expenses to the extent of

(A) 10% of the cost of the project.

(B) 20% of the cost of the project.

(C) 30% of the cost of the project.

(D) 5% of the cost of the project.

Ans: (D) 5% of the cost of the project.

24. When SEBI was established?

(A) 1935.

(B) 1965.

(C) 1992.

(D) 1955.

Ans: (C) 1992.

25. If MR < 0, then the TR will be

(A) rising.

(B) highest.

(C) falling.

(D) zero.

Ans: (C) falling.

26. The Diamond model assumes that

(A) Multinational firms must develop global strategies based only on home demand conditions.

(B) Multinational firms must pay less attention to global consumers than domestic consumers.

(C) The national home base of a firm must be the biggest market for a multinational firm.

(D) The national home base of a firm plays a key role in shaping that firms competitive advantage in global markets.

Ans: (D) The national home base of a firm plays a key role in shaping that firms competitive advantage in global markets.

27. The risk of return from investment can be measured through

(A) Variability of rates of return from average rate of return as derived in the form of standard deviation.

(B) Variability of rates of return from average rate of return as derived in the form of median.

(C) Comparison of return from investment with industry returns.

(D) Comparison of return from investment with competitor’s return.

Ans: (A) Variability of rates of return from average rate of return as derived in the form of standard deviation.

28. Section 31 of the Competition Act, 2002 deals with

(A) Appearance before commission.

(B) Inquiry into combination by commission.

(C) Orders of commission on certain combination.

(D) Rectification of orders.

Ans: (C) Orders of commission on certain combination.

29. Which of the following is not included in a job design?

(A) Identifying what tasks need to be carried out.

(B) When and how tasks are to be carried out.

(C) The number of tasks to be carried out.

(D) The payment rates for the tasks to be carried out.

Ans: (D) The payment rates for the tasks to be carried out.

30. Which of the following Government scheme is related to financial inclusion?

(A) PMJBY.

(B) UJJWALA YOJANA.

(C) PMJDY.

(D) PM-UDAY.

Ans: (C) PMJDY.

31. Marketers typically focuses on _______ in choosing the points of parity and point of difference that make-up their brand positioning.

(A) Brand Equity.

(B) Brand awareness.

(C) Brand benefits.

(D) Brand architecture.

Ans: (C) Brand benefits.

32. The IMF was established in the year

(A) 1944.

(B) 1946.

(C) 1955.

(D) 1956.

Ans: (A) 1944.

33. One of the crucial assumptions of Walter model of dividend distribution and firm value is that the firm finances its all investments through

(A) external debt (raised for investment).

(B) external equity (raised for investment).

(C) retained earnings.

(D) external commercial borrowings.

Ans: (C) retained earnings.

34. Cost Inflation Index for the financial year 2020-21 notified by the Ministry of Finance is

(A) 289.

(B) 301.

(C) 317.

(D) 280.

Ans: (B) 301.

35. In an inflationary period, additional depreciation is required to be charged to cover the backlog of depreciation of gross current replacement cost of the assets that increase every year when accounts are prepared as per

(A) Cash System.

(B) Current Cost Accounting Method.

(C) Current Purchasing Power Method.

(D) Mercantile System.

Ans: (B) Current Cost Accounting Method.

36. The WTO is the successor to the

(A) GATT.

(B) ASEAN.

(C) EU.

(D) UNCTAD.

Ans: (A) GATT.

37. Under the Companies Act, 2013, companies with how much net worth have to spend on CSR?

(A) Rs. 100 crores.

(B) Rs. 200 crores.

(C) Rs. 400 crores.

(D) Rs. 500 crores.

Ans: (D) Rs. 500 crores.

38. Which combination is incorrect?

(A) F.W. Taylor = Scientific management.

(B) Elton Mayo = Hawthome experiments.

(C) Douglas = Expectancy theory.

(D) Frederick Herzberg = Motivation Hygienic theory.

Ans: (C) Douglas = Expectancy theory.

39. Which is the largest Co-operative Bank spread over many States in India?

(A) Saraswat Co-operative Bank.

(B) Cosmos Co-operative Bank Ltd.

(C) SVC Co-operative Bank Ltd.

(D) Bharat Co-operative Bank (Mumbai) Ltd.

Ans: (A) Saraswat Co-operative Bank.

40. In a linear regression y = a + bx, b indicates

(A) slope.

(B) intercept.

(C) variable.

(D) correlation.

Ans: (A) slope.

41. Brand _______ is the added value endowed to product and services.

(A) loyalty.

(B) equity.

(C) preference.

(D) Identity.

Ans: (B) equity.

42. Assuming a constant level of fixed assets, a higher CA/FA ratio indicates

(A) Aggressive current assets policy.

(B) Moderate current assets policy.

(C) Conservative current assets policy.

(D) Average current assets policy.

Ans: (C) Conservative current assets policy.

43. A historical record of where the funds came from and how these were utilized during the year is known as

(A) Funds flow statement.

(B) Cash flow statement.

(C) Cash budget.

(D) Capital budget.

Ans: (A) Funds flow statement.

44. _______ refers to the determination of all goods and services by the interaction of the forces of demand and supply without any external interference.

(A) Product mechanism.

(B) Price mechanism.

(C) Cost mechanism.

(D) Revenue mechanism.

Ans: (B) Price mechanism.

45. ‘Marketing and Innovation are the two basic functions of a business enterprise’.  Who is known for this statement?

(A) Philip Kotler.

(B) William J. Stanton.

(C) Henry Fayol.

(D) Peter F. Drucker.

Ans: (D) Peter F. Drucker.

46. IPPB in Banking denotes

(A) Indian Public Personal Banking.

(B) India Post Payment Bank.

(C) India Post Public Bank.

(D) Indian Public Payments Bank.

Ans: (B) India Post Payment Bank.

47. If the correlation coefficient is a positive value, then the slope of the regression line

(A) must also be positive.

(B) can be either negative or positive.

(C) can be zero.

(D) can be infinite.

Ans: (A) must also be positive.

48. The _______ technique used for stimulating creativity identifies a problem and then considers the dimension, the medium and the power source.

(A) Attribute listing.

(B) Mind mapping.

(C) Lateral thinking.

(D) Morphological analysis.

Ans: (D) Morphological analysis.

49. Which of the following is not a clause of Memorandum of Association?

(A) Situation.

(B) Capital.

(C) Subscription.

(D) Directors.

Ans: (D) Directors.

50. To find debt equity ratio the denominator is

(A) Number of equity shares.

(B) Paid-up share capital.

(C) Reserves and surplus.

(D) Net worth.

Ans: (D) Net worth.

51. Who is known for pointing out relationship between strategy and structure?

(A) Herbert Simon.

(B) Tom Peters.

(C) Alfred D. Chandler.

(D) William G. Ouchi.

Ans: (C) Alfred D. Chandler.

52. Income elasticity of demand for inferior goods is

(A) Positive.

(B) Negative.

(C) Zero.

(D) Greater than one.

Ans: (B) Negative.

53. What is the median of the sample 5, 5, 11, 9, 8, 5, 8?

(A) 5.

(B) 6.

(C) 8.

(D) 9.

Ans: (C) 8.

54. Minimum required paid-up capital for opening a Payment Bank according to RBI is

(A) Rs. 500 crores.

(B) Rs. 100 crores.

(C) Rs. 300 crores.

(D) Rs. 200 crores.

Ans: (B) Rs. 100 crores.

55. If the capital budgeting decision (a project) generates constant cash flows each year then payback period =

(A) Annual cash flows/Initial investment.

(B) Initial Investment/Annual cash flows.

(C) Present value of annual cash flows/Initial investment.

(D) Present value of annual cash flows/present value of initial investment.

Ans: (B) Initial Investment/Annual cash flows.

56. Unabsorbed depreciation can be carried forward to the subsequent years by the same assessee for a period of

(A) 4 assessment years.

(B) 7 assessment years.

(C) No time limit.

(D) 8 assessment years.

Ans: (C) No time limit.

57. A promise to compensate wholly or in part, a person who has already voluntarily done something for the promisor is

(A) enforceable.

(B) not enforceable because it is without consideration.

(C) Void.

(D) Voidable.

Ans: (A) enforceable.

58. Which one is a portfolio investment?

(A) Joint venture.

(B) Acquisition.

(C) Investments by FIIs (Foreign Institutional Investors).

(D) Wholly owned subsidiary.

Ans: (C) Investments by FIIs (Foreign Institutional Investors).

59. In Luther Gulick’s POSDCORB, “D” stands for:

(A) Division of work.

(B) Democracy.

(C) Decision-making.

(D) Directing.

Ans: (D) Directing.

60. The distribution that is formed by all possible values of a statistics is known as

(A) Hypergeometric distribution.

(B) Normal distribution.

(C) Sampling distribution.

(D) Binomial distribution.

Ans: (C) Sampling distribution.

61. Match the following:

List A (Institution)

List B (Year of Establishment)

(1) Imperial Bank of India.

(2) Reserve Bank of India.

(3) State Bank of India.

(4) Industrial Development Bank of India.

(a) 1935.

(b) 1955.

(c) 1921.

(d) 1964.

 Code:

(A) (1)-(a), (2)-(c), (3)-(d), (4)-(b).

(B) (1)-(d), (2)-(a), (3)-(b), (4)-(c).

(C) (1)-(a), (2)-(d), (3)-(c), (4)-(b).

(D) (1)-(c), (2)-(a), (3)-(b), (4)-(d).

Ans: (D) (1)-(c), (2)-(a), (3)-(b), (4)-(d).

62. In the case of a Giffen good, a fall in its price tends to

(A) Demand remains constant.

(B) Increases demand.

(C) Reduces demand.

(D) Abnormal change in demand.

Ans: (C) Reduces demand.

63. The heart of the internal records system is the

(A) Pay-roll system.

(B) Purchase order cycle.

(C) Order-to-payment cycle.

(D) Expense cycle.

Ans: (C) Order-to-payment cycle.

64. Given the constant Ke and Kd and Kd < Ke, the WACC (K0) will decrease continuously with increase in financial leverage measured by Debt/value is given by

(A) Net income approach.

(B) Net operating income approach.

(C) M-M hypothesis proposition-I.

(D) Traditional Theory.

Ans: (A) Net income approach.

65. PEST analysis

(A) a checklist to ask for political, economic, strategic or technological developments can influence an industry and
a company.

(B) a board framework to help managers understand the environment in which their business operates.

(C) a checklist for forecasting political, economic, strategic or technological factors.

(D) a framework for strategic analysis for internal and external environment.

Ans: (B) a board framework to help managers understand the environment in which their business operates.

66. Taylor’s concept of functional organisation is against the principle of

(A) Division of work.

(B) Unity of command.

(C) Span of control.

(D) Centralization.

Ans: (B) Unity of command.

67. Rate of depreciation of Buildings Residential Buildings other than Hotels and Boarding houses is

(A) 30%.

(B) 20%.

(C) 10%.

(D) 5%.

Ans: (D) 5%.

68. When a party to the contract transfers his contractual rights to another, it is known as

(A) rescission of contract.

(B) waiver of contract.

(C) discharge of contract.

(D) assignment of contract.

Ans: (D) assignment of contract.

69. _______ is the world’s largest single markets with 27 member countries, a common currency and millions of consumers.

(A) NAFTA.

(B) APEC.

(C) EU.

(D) ASEAN.

Ans: (C) EU.

70. Core competencies tend to refer to areas of special technical and production expertise, whereas _______ tend to describe excellence in broader business.

(A) Process benchmarks.

(B) Distinctive capabilities.

(C) Distributive capabilities.

(D) Concentric capabilities.

Ans: (C) Distributive capabilities.

71. What is NGTA of RBI?

(A) National Green Tribunal Authority.

(B) Next Generation Treasury Application.

(C) National Gross Treasure Authority.

(D) National Green Trees Authority.

Ans: (B) Next Generation Treasury Application.

72. When all other factors are constant, the break-even point will decrease by

(A) increasing the fixed cost.

(B) increasing the selling price.

(C) decreasing the contribution margin.

(D) increasing the variable cost per unit.

Ans: (B) increasing the selling price.

74. Maximum ceiling of interest on borrowed capital under section 24 (b) is deductible and the individual has not opted for alternative tax regime under section 115 BAC is

(A) Rs. 50,000.

(B) Rs. 2,00,000.

(C) Rs. 1,00,000.

(D) Rs. 5,00,000.

Ans: (B) Rs. 2,00,000.

75. An Agreement not enforceable by law is said to be

(A) Void.

(B) Voidable.

(C) Valid.

(D) Unenforceable.

Ans: (A) Void.

76. The law of diminishing return assumes

(A) There are not fixed factors of production.

(B) There are not variable factors of production.

(C) Utility maximized when marginal product falls.

(D) Some factors of production are fixed.

Ans: (D) Some factors of production are fixed.

77. The Indecent Representation of Women (Prohibition) Act was passed in the year

(A) 1956.

(B) 1966.

(C) 1976.

(D) 1986.

Ans: (D) 1986.

78. Which is not a past-oriented method of performance appraisal?

(A) Rating Scales.

(B) Checklists.

(C) BARS.

(D) 360 degree appraisal.

Ans: (D) 360 degree appraisal.

79. Which one among the following statement is true in the context of the testing of hypothesis?

(A) It is only the alternative hypothesis that can be tested.

(B) It is only the null hypothesis that can be tested.

(C) Both the alternative and the null hypothesis can be tested.

(D) Both the alternative and the null hypothesis cannot be tested.

Ans: (B) It is only the null hypothesis that can be tested.

80. Capital profit with reference to holding companies is

(A) Post acquisition profits of the subsidiary company.

(B) Profits earned by the subsidiary company upto the date of acquisition of shares by the holding company.

(C) Profits earned by the subsidiary company by unusual transactions.

(D) Profits made by holding company on sale of goods.

Ans: (B) Profits earned by the subsidiary company upto the date of acquisition of shares by the holding company.

81. Standard deduction under section 16 (i)/(i)(a) is subject to the maximum of _______ from the AY 2020-21 and the individual has not opted for alternative tax regime.

(A) Rs. 10,000 (or) amount of salary.

(B) Rs. 20,000 (or) amount of salary.

(C) Rs. 40,000 (or) amount of salary.

(D) Rs. 50,000 (or) amount of salary.

Ans: (D) Rs. 50,000 (or) amount of salary.

82. In case of ‘Zero interest Fully Convertible Debentures’, (ZFCD) return to debenture holders is available in the form of

(A) Difference between the issue price of ZFCD and the market price of converted share.

(B) Difference between the issue price of ZFCD and the redemption value given by the company.

(C) Interest over the life ZFCD.

(D) Interest + difference between the issue price of ZFCD and redemption value.

Ans: (A) Difference between the issue price of ZFCD and the market price of converted share.

83. As per the GST Act, An Invoice must be issued

(A) At the time of removal of goods.

(B) On transfer of risks and rewards of the goods to the recipient.

(C) On receipt of payment for the supply.

(D) Earliest of the above dates.

Ans: (A) At the time of removal of goods.

84. A liability taken over by a partner at the time of dissolution is credited to

(A) Profit and Loss A/c.

(B) Partner’s Capital A/c.

(C) Realisation A/c.

(D) Revaluation A/c.

Ans: (B) Partner’s Capital A/c.

85. When Apple introduced its I phone in USA, it was priced at $599. Two months after the introduction, the price has came down to $399. What kind of pricing did Apple adopt?

(A) Loss-leader pricing.

(B) Market-penetration pricing.

(C) Market-skimming pricing.

(D) Value pricing.

Ans: (C) Market-skimming pricing.

86. The five forces model can be used to

(A) plan a firm’s global strategy based on internal firm resources.

(B) understand a firm’s strategic internal assets in global markets or regional markets.

(C) analyse a firm’s competitive position in a specific market segment or similar market segments.

(D) explain why industry change may force firms to relocate parts of their business to other countries.

Ans: (C) analyse a firm’s competitive position in a specific market segment or similar market segments.

87. Average fixed cost

(A) decline as output increases.

(B) do not change as output increases.

(C) increase as output increases.

(D) are always constant.

Ans: (A) decline as output increases.

88. Employers’ contribution towards recognised provident fund, NPS and super annuation fund is not chargeable to tax from the AY 2021-22 to the extent of

(A) Rs. 1.5 Lakh per year.

(B) Rs. 2 Lakh per year.

(C) Rs. 5 Lakh per year.

(D) Rs. 7.5 Lakh per year.

Ans: (D) Rs. 7.5 Lakh per year.

89. While auditing the tangible assets, for correct valuation of the same

(A) The auditor should ensure that the depreciation has been charged and the method used is appropriate and the impairment assessment has been carried out by the management.

(B) The auditor should ensure that there is no change in the depreciation policy.

(C) The impairment loss need not be taken into consideration.

(D) The auditor should ensure that the depreciation policy is followed as that of the competitor.

Ans: (A) The auditor should ensure that the depreciation has been charged and the method used is appropriate and the impairment assessment has been carried out by the management.

90. _______ describes the present state of affairs as it exists without having any control over variables.

(A) Analytical Research.

(B) Descriptive Research.

(C) Applied Research.

(D) Distinctive Research.

Ans: (B) Descriptive Research.

91. The internal records systems supplies results data, but the marketing intelligence system supplies _______ data.

(A) Internal.

(B) Revenue.

(C) Thematic.

(D) Happenings.

Ans: (D) Happenings.

92. A bag contains 5 red balls and some blue balls. If the probability of drawing a blue ball is double that of a red ball, then the number of blue balls in a bag is

(A) 5.

(B) 10.

(C) 15.

(D) 20.

Ans: (B) 10.

93. Digital signature certificate is _______ requirement under various applications of business.

(A) Statutory.

(B) Mandatory.

(C) Governmental.

(D) Voluntary.

Ans: (A) Statutory.

94. The backward-bending labour supply curve is due to

(A) The shape of individual’s indifference curves between leisure and income.

(B) The fact that people’s response to a wage rise is just the same at high levies of income as it is at low levels of income.

(C) The fact that the income and substitution effect of an increase in the wage rate work in the same direction.

(D) The fact that the income and substitution effect of an decrease in the wage rate work in the same direction.

Ans: (A) The shape of individual’s indifference curves between leisure and income.

95. When Average Revenue (AR) is constant, Marginal Revenue (MR) is

(A) More than AR.

(B) Less than AR.

(C) Equal to AR.

(D) Equal to zero.

Ans: (C) Equal to AR.

96. Gratuity received by an employee covered by the Payment of Gratuity Act, 1972 is exempt to the maximum of _______ for the AY 2021-22.

(A) Rs. 3,50,000.

(B) Rs. 10,00,000.

(C) Rs. 20,00,000.

(D) Rs. 30,00,000.

Ans: (C) Rs. 20,00,000.

97. Degree of Freedom for Chi-square test in case of contingency table of order (5×5) is

(A) 25.

(B) 16.

(C) 10.

(D) 5.

Ans: (B) 16.

98. Only significant events which affect business must be recorded as per principle of

(A) Accrual.

(B) Materiality.

(C) Going Concern.

(D) Business entity.

Ans: (B) Materiality.

99. How many designated partners are required in LLP?

(A) Seven designated partners.

(B) At least two designated partners.

(C) More than two partners.

(D) At least seven designated partners.

Ans: (B) At least two designated partners.

100. Student’s t-test was designed by

(A) R. A. Fisher.

(B) Wilcoxon.

(C) Wald Wolfowitz.

(D) W.S. Gosset.

Ans: (D) W.S. Gosset.

***

Leave a Comment

error: Content is protected !!