PAPER-III
COMMERCE
Note : This paper contains seventy five (75) objective type questions of two (2) marks each.
All questions are compulsory.
1. Under the provisions of the
Industries (Development and
Regulation) Act, 1951, a licence is
necessary for
(A) Changing the location of an
existing industrial undertaking.
(B) producing or manufacturing a
‘new article’ in an existing
industrial undertaking.
(C) Establishing a new
undertaking.
(D) All of the above.
Answer:(D)
2. Match the items of List-I with the
items of List-II and select the correct
answer.
List-I List-II
(i) Political (a) Important for industries
and Legal directly depending on imports
Environ-ment or exports.
(ii) Demo graphic (b) Close relationship with the
Environ-ment economic system and economic
(iii) Economic Environ-ment (c) Related to natural resources.
(iv) Geo graphical and (d) Occupational and spatial
Ecological Environ-ment mobilities of population having
i mplications for business
Codes :
(i) (ii) (iii) (iv)
(A) (b) (d) (c) (a)
(B) (b) (d) (a) (c)
(C) (a) (b) (c) (d)
(D) (a) (b) (d) (c)
Answer:(B)
3. Match the items of List-I with the
items of List-II and select the correct
answer :
List – I List – II
(i) SLR (a) Working in the field of consumer
protection.
(ii) SIDBI (b) Credit control.
(iii) CUTS (c) Industrial policy.
(iv) ILPIC (d) Facilitating Small
Scale Industries.
Codes :
(i) (ii) (iii) (iv)
(A) (a) (c) (d) (b)
(B) (b) (d) (a) (c)
(C) (a) (b) (c) (d)
(D) (a) (c) (b) (d)
Answer:(B)
4. Match the following :
List – I List – II
(i) National (a) Marks the beginning of the
Stock process of dematerialisation
Exchange of shares of the participating companies.
(ii) National (b) Facilitation of equal access to
Securities investors across the country.
Depository
Limited
(iii) Securities (c) To foster the development of
and an active secondary market
Exchange for Government Securities.
Board of
India
(iv) Securities (d) Abolition of Capital issues
Trading control and retaining the sale
Corporat-ion of authority for new capital issues.
India
Codes :
(i) (ii) (iii) (iv)
(A) (b) (a) (d) (c)
(B) (a) (b) (c) (d)
(C) (a) (b) (d) (c)
(D) (d) (c) (b) (a)
Answer:(A)
5. The United Nations Conference on
Trade and Development (UNCTAD)
was set up in
(A) 1944 (B) 1954
(C) 1960 (D) 1964
Answer:(D)
6. Indicate the ground on which a
complaint under the Consumer
Protection Act, 1986, shall be invalid.
(A) A product having short weight.
(B) A service provided free of cost.
(C) A misleading advertisement
given in newspaper.
(D) None of the above.
Answer:(B)
7. Out of the following, which are the
four components of food security ?
(i) Food availability
(ii) Food market
(iii) Food accessibility
(iv) Food utilization
(v) Food credit
Codes :
(A) (iii), (iv) and (v)
(B) (i), (iii) and (iv)
(C) (i), (ii) and (iii)
(D) (i), (ii) and (iv)
Answer:(B)
8. Performance evaluation of a
responsibility centre can be done by
(A) ROI
(B) Return on sales
(C) EVA
(D) All of the above
Answer:(D)
9. Social Balance Sheet shows
(A) Social costs
(B) Social revenues
(C) Value of employees of the
organisation
(D) All of the above
Answer:(C)
10. Which of the following comes under
efficiency ratios ?
(A) Average collection period
(B) Inventory turnover ratio
(C) Fixed assets turnover ratio
(D) All of the above
Answer:(D)
11. Match the items of the following two
lists :
List – I List – II
(i) Statement of (a) Cash Flow
changes in Statement
Working
Capital
(ii) Deferred (b) Fixed Assets
Tax
(iii) Three (c) Funds Flow
activities Statement
(iv) Impairment (d) Balance Sheet
Loss
Codes :
(i) (ii) (iii) (iv)
(A) (a) (b) (c) (d)
(B) (c) (d) (b) (a)
(C) (c) (d) (a) (b)
(D) (d) (c) (a) (b)
Answer:(C)
12. Match the items of the following two
lists and indicate the correct answer :
List – I List – II
(i) Earning (a) Basis of Accounting
ability of
firm
(ii) Conservatism (b) P/V ratio
(iii) Cash profit (c) Cash flow statement
(iv) Cash and (d) Prudence
Accrual
Codes :
(i) (ii) (iii) (iv)
(A) (b) (d) (c) (a)
(B) (b) (a) (d) (c)
(C) (c) (d) (a) (b)
(D) (c) (d) (b) (a)
Answer:(A)
13. Given below are two statements, one
labelled as Assertion (A) and the
other labelled as Reason (R).
Assertion (A) : Only the relevant
costs should be taken into
consideration for decision-making.
Reason (R) : All variable costs are
relevant costs and all fixed
costs are irrelevant costs.
In the above two statements, which
one alternative of the following is
correct ?
Codes :
(A) Both (A) and (R) are correct.
(B) Only (A) is correct, but (R) is
wrong.
(C) Only (R) is correct, but (A) is
wrong.
(D) Both (A) and (R) are wrong.
Answer:(B)
14. Given below are two statements, one
labelled as Assertion (A) and the
other labelled as Reason (R) :
Assertion (A) : Variance analysis is
undertaken for planning and
control of costs.
Reason (R) : Future costs are taken
into consideration in budgeting
and standard costing.
In the above two statements, which
one alternative of the following is
correct ?
Codes :
(A) Both (A) and (R) are correct
and (R) is the Reason for (A).
(B) Both (A) and (R) are correct
and (R) is not the Reason for
(A).
(C) (A) is correct, but (R) is wrong.
(D) (A) is wrong, but (R) is correct.
Answer:(B)
15. Assertion (A) : Mark-up pricing is a
method of determining price.
Reason (R) : P = ATC + (m × ATC)
is the expression for that.
Codes :
(A) (A) is correct but (R) is not
correct.
(B) Both (A) and (R) are correct.
(C) Both (A) and (R) are not
correct.
(D) (R) is correct, but (A) is not
correct.
Answer:(B)
16. Match the items of List-I with the
items of List-II and select the correct
answer.
List – I List – II
(a) Economic (i) Total
profit Revenue Explicit cost
(b) Accounting (ii) Buyers and Sellers
profit exchanging
(c) Collusion/ (iii) Total Revenue – Total cost
Cartel
(d) Market (iv) Oligopoly
Codes :
(a) (b) (c) (d)
(A) (iii) (i) (iv) (ii)
(B) (i) (ii) (iii) (iv)
(C) (iv) (iii) (ii) (i)
(D) (ii) (iv) (i) (iii)
Answer:(A)
17. Which one is not the item of
economic cost to the business ?
(A) Owner supplied resources.
(B) Market supplied resources.
(C) Implicit costs.
(D) Non-monetary opportunity
costs of using owner supplied
resources.
Answer:(B)
18. Demand must have the elements
(A) Desire
(B) Want
(C) Quantity, Price and Time
(D) All of the above
Answer:(D)
19. Match the items of List-I and items
of List-II and select the correct code
for the answer.
List – I List – II
(a) Utilitarian (i) Marginal Rate
Approach of Substitution
(b) Ordinal (ii) Budget line & Indifference
Approach Curve
(c) Price-Consumption (iii) U=f (x, y)
Curve
(d) Consumer (iv) MRSxy =
Equilibrium MRSyx
Codes :
(a) (b) (c) (d)
(A) (i) (iv) (iii) (ii)
(B) (ii) (iii) (iv) (i)
(C) (iii) (i) (ii) (iv)
(D) (iv) (ii) (i) (iii)
Answer:(C)
20. The Learner Index measures
(A) Market power
(B) Price
(C) Price-Marginal cost
(D) None of the above
Answer:(A)
21. Match the items of List-I and items
of List-II and select the correct
answer.
List – I List – II
(a) Perfect (i) Different prices for the
competition same product
(b) Monopolistic (ii) Dominant strategy
competition
(c) Oligopoly (iii) Product differentiation
(d) Discriminating (iv) Identical product
Monopoly
Codes :
(a) (b) (c) (d)
(A) (iv) (iii) (ii) (i)
(B) (i) (ii) (iii) (iv)
(C) (ii) (iv) (i) (iii)
(D) (iii) (i) (iv) (ii)
Answer:(A)
22. If there are 8 possible classes under
consideration for a goodness of-fit,
the number of degrees of freedom
will be
(A) 8
(B) 7
(C) 6
(D) Cannot be determined from the
given information.
Answer:(D)
23. Identify from the following, the test
statistic for which the value of
numerator should always be greater
than that of denominator.
(A) ‘Chi-square’ (B) ‘F’ value
(C) ‘Z’ value (D) ‘t’ value
Answer:(B)
24. Which of the following tests can be
applied to ordinal scale data ?
(i) Chi-square test
(ii) ‘Z’ test
(iii) Kruskal-Wallis test
(iv) Wilcoxon Mann-Whitney test
Codes :
(A) (i), (ii) and (iii)
(B) (ii), (iv) and (iii)
(C) (i), (iii) and (iv)
(D) (i), (ii) and (iv)
Answer:(C)
25. Which of the following tests can be
based on the normal distribution ?
(A) Difference between
independent means
(B) Difference between dependant
means
(C) Difference between proportions
(D) All of the above
Answer:(D)
26. From the following, identify one
situation where ‘F’ test cannot be
used ?
(A) To compare more than two
population means.
(B) To test the hypothesis about a
single population variance.
(C) To test the hypothesis about
two-population variance.
(D) To study about randomized
block design.
Answer:(B)
27. Which statistical test should be
applied to test the effectiveness of
‘special coaching’ on the marks
scored by the students ?
(A) Paired ‘t’ test
(B) ‘Chi-square’ test
(C) ‘Z’ test
(D) ‘F’ test
Answer:(A)
28. In a linear equation,
y = a + bx, ‘a’ refers to
(A) Slope
(B) Y-intercept
(C) Dependant variable
(D) Independent variable
Answer:(B)
29. Which among the following is the
most popular approach for
accomplishing the results ?
(A) Management by exception
(B) Reward system
(C) Management by objectives
(D) Mentor system
Answer:(C)
30. The managerial function of
organizing involves
(A) Reviewing and adjusting plan
in the light of changing
conditions.
(B) Establishing programme for the
accomplishment of objectives.
(C) Creating structure of functions
and duties to be performed.
(D) Getting things done through
others.
Answer:(C)
31. A leader who identifies what
subordinates need to do to achieve
objectives, clarify organizational
roles and tasks, set up an
organization structure, reward
performance and provide for the
social needs of their followers, is
(A) a transformational leader
(B) a participative leader
(C) a transactional leader
(D) an autocratic leader
Answer:(C)
32. Which of the following is not an
assumption of theory X ?
(A) An average human being has
an inherent dislike of work and
will avoid it if he can.
(B) An average human being
prefers to be directed, seeks to
avoid responsibility, has
relatively little ambition, and
want security above all.
(C) An average human being learns
under proper conditions, not
only to accept responsibility
but also to seek it.
(D) Most people must be coerced,
controlled, directed and
threatened with punishment to
get them put forth adequate
effort.
Answer:(C)
33. If a network of interpersonal
relationship that arise when people
associate with each other is an
informal organization, then find out
which of the following is not an
informal organization ?
(A) The “machine shop” group
(B) Customers’ group
(C) The “sixth floor” group
(D) The “Friday evening bowling”
gang
Answer:(B)
34. Which of the following are sources
of ethics ?
(i) Religion
(ii) Legal system
(iii) Economic system
(iv) Culture
(v) Family system
Select the correct answer from the
codes given below :
(A) (i), (ii), (iii), (v)
(B) (i), (ii), (iv)
(C) (i), (iv), (v)
(D) (i), (ii), (iii), (iv), (v)
Answer:(C)
35. Which of the following has refined
Maslow’s theory of motivation by
proposing a hierarchy of three
needs ?
(A) MeClelland (B) Aldorfer
(C) Herzburg (D) Vroom
Answer:(B)
36. Which segmentation approach is the
most compatible with the spirit of the
marketing concept ?
(A) Benefit sought
(B) Income
(C) Social class
(D) Family size
Answer:(A)
37. The description of a product’s
quality, features, style, brand name
and packaging identifiers the
(A) Actual product
(B) Augmented product
(C) Core product
(D) Tangible product
Answer:(A)
38. Consider the following statements
and find out the correct alternative
from the codes given below :
(i) A firm’s marketing information
system is a component of its
marketing research system.
(ii) The most common forms of
marketing researches
conducted in most of the firms
are the measurement of market
potential and the analysis of
market share.
(iii) Survey research is seldom used
for studying consumer
perception and attitudes.
(iv) The concept of cognitive
dissonance is relevant to study
consumer’s post-purchase
behaviour.
Codes :
(A) All the statements are true.
(B) All the statements are false.
(C) (i) is false and the rest are true.
(D) (ii) and (iv) are true and the rest
are false.
Answer:(D)
39. In India, which pricing practice is not
permissible ?
(A) Penetrating pricing
(B) Skimming pricing
(C) Predatory pricing
(D) None of the above
Answer:(C)
40. Consider the following statements
and find out the correct alternative
from the codes given below :
(i) A good salesman is one who
can sell refrigerator to an
Eskimo.
(ii) Salesmen are born, not made.
(iii) Physical distribution is an area
where high cost-savings is
possible.
Codes :
(A) (i) and (iii) are correct.
(B) (i) and (ii) are correct.
(C) (ii) and (iii) are correct.
(D) All are correct.
Answer:(A)
41. Which form of retail outlet has the
highest operating costs ?
(A) Super market
(B) Consumer co-operative store
(C) Department store
(D) Retail chain store
Answer:(C)
42. Consider the following statements
and indicate the correct alternative
from the codes given below :
(i) The product management
system often turns out to be
costly.
(ii) When customers belong to
different user groups with
distinct buying preferences and
practices, a market
management organization is
not suitable.
(iii) Advertising department has the
closest interface with the
finance department of the
company.
Codes :
(A) (i) and (ii) are correct.
(B) (ii) and (iii) are correct.
(C) Only (i) is correct.
(D) All are correct.
Answer:(C)
43. Match the statements in List-I with
dividend models in List-II as follows :
List – I List – II
I Dividend 1. Traditional
Capitalisation Model
Approach.
II Dividend Policy 2. Gardon Model
has a bearing on
the share
valuation.
III Stock Market 3. Walter Model
places more
weight on
dividends than
on retain
earnings.
IV Dividend payout 4. Modigliani and Miller
is irrelevant to Model
the value of the firm.
Codes :
I II III IV
(A) 2 3 1 4
(B) 1 2 4 3
(C) 4 1 3 2
(D) 3 4 2 1
Answer:(A)
44. Venture capital financing at starting
stage is generally not done through
(A) Debt instruments
(B) Deep discount bonds
(C) Equity shares
(D) Conditional loans
Answer:(B)
45. Match the statements in List-I with
the types of lease in the List-II as
follows :
List – I List – II
I Lessor transfers all 1. Indirect lease
risks and rewards
of an asset to the
lessee.
II Lessor transfers the 2. Operating lease
assets to the lessee
but bears the cost
of maintenance
III The owner of the 3. Finance lease
asset sells it to the
lessor who in turn
leases it back to the
owner (now lessee)
IV Lessor owns/ 4. Direct lease
acquires the assets
that are leased to a
given lessee.
Codes :
I II III IV
(A) 2 3 4 1
(B) 1 4 2 3
(C) 3 2 1 4
(D) 4 1 3 2
Answer:(C)
46. Full details for the issue of ADRs by
a company must be furnished within
30 days from the date of its closure to
(A) Securities and Exchange
Commission (SEC)
(B) Reserve Bank of India (RBI)
(C) Securities and Exchange Board
of India (SEBI)
(D) Company Law Board (CLB)
Answer:(B)
47. The degree to which the returns of
the two securities change together, is
reflected by
(A) Correlation (B) Leverage
(C) Covariance (D) Beta
Answer:(C)
48. The transfer by a company of one or
more of its business divisions to
another newly set up company is
called
(A) Demerger
(B) Merger
(C) Equity Carve-out
(D) Disinvestment
Answer:(A)
49. What combination of the following
factors influences the working capital
requirement ?
I Market Conditions
II Production Policy
III Firm’s goodwill
IV Supply conditions
Codes :
(A) I, II and III
(B) II, III and IV
(C) I, III and IV
(D) I, II and IV
Answer:(D)
50. Which of the followings are the
modern method of performance
appraisal ?
(i) 360 degree performance
appraisal.
(ii) Graphic rating scale.
(iii) Management By Objectives
(MBO).
(iv) Forced distribution method.
(v) Behaviourally Anchored
Rating Scales (BARS).
Select the correct answer from the
codes given below :
(A) (i), (ii), (iii) (B) (ii), (iv), (v)
(C) (i), (iii), (v) (D) (iv), (ii), (i)
Answer:(C)
51. Which of the following principle
serves as a warning to organisations
not to take the selection and
promotion process lightly ?
(A) Promotion Principle
(B) Drucker Principle
(C) Validity Principle
(D) Peter Principle
Answer:(D)
52. According to D. Katz morale has
four dimensions :
(i) jobs satisfaction
(ii) satisfaction with wages and
promotional opportunities.
(iii) Identification with company.
(iv) Pride in the work group.
(v) Top Management Support.
Select the correct combination.
(A) (i), (ii), (iii) and (iv)
(B) (i), (ii), (iii) and (v)
(C) (i), (ii), (iv), and (v)
(D) (i), (iii), (iv) and (v)
Answer:(A)
53. HRM is viewed as a management
process, consisting of four functional
activities :
(i) Acquisition
(ii) Motivation
(iii) Development
(iv) Resolution of industrial disputes
(v) Maintenance
Select the correct combination.
(A) (i), (ii), (iii) and (iv)
(B) (i), (ii), (iii) and (v)
(C) (i), (ii), (iv) and (v)
(D) (i), (iii), (iv) and (v)
Answer:(B)
54. O C TA PA C stands for
(A) Order, Co-ordination, Trust,
Authority, Personality and Co-
operation.
(B) Openness, Confrontation,
Trust, Authenticity, Pro-action
and Collaboration.
(C) Organisation, Conflict, Team,
Authority, People and
Collaboration.
(D) Oneness, Compromise, Tress
pass, Authority, Protection and
Combination.
Answer:(B)
55. Technique of ‘Transaction Analysis’
was developed by
(A) Elton Mayo
(B) Peter Drucker
(C) Eric Berne
(D) Adam Smith
Answer:(C)
56. Which one of the following methods
is not a demand forecasting method
of Human Resource Planning ?
(A) Managerial judgement
(B) Managerial grid
(C) Work study techniques
(D) Statistical techniques
Answer:(B)
57. Transaction of Internet Banking
excludes
(A) Withdrawal of cash anywhere
in India.
(B) Statement of account for a
specific period.
(C) Transfer of funds from one
account to another account.
(D) Balance enquiry.
Answer:(A)
58. Which among the following is not a
category of Non-Performing Assets ?
(A) Substandard Assets
(B) Doubtful Debts
(C) Loss Assets
(D) Devaluated Assets
Answer:(D)
59. When a loan will be NPA ?
(A) Interest and/or loan instalments
overdue for more than 90 days.
(B) Account is out of order for
more than 90 days in case of
overdraft/cash credit.
(C) Bill remains overdue for more
than 90 days.
(D) All of the above.
Answer:(D)
60. Assertion (A) : “The problem of
rural credit is not primarily one
of rural credit, it may be said to
be one of rural minded credit.”
Reason (R) : The Indian economy
has yet to come out of rural
mentality.
Codes :
(A) Both (A) and (R) are correct.
(B) Both (A) and (R) are incorrect.
(C) (A) is correct, but (R) is
incorrect.
(D) (R) is correct, but (A) is
incorrect.
Answer:(C)
61. Match the items of List-I with the
items of List-II and select the correct
answer :
List – I List – II
(i) Debit card (a) Several storage
(ii) Credit card b) Online recovery of amount
(iii) Electronic purse (c) Image processing use
(iv) Cheque (d) Revolving credit
function
Codes :
(i) (ii) (iii) (iv)
(A) (c) (a) (d) (b)
(B) (a) (b) (d) (c)
(C) (d) (c) (a) (b)
(D) (d) (c) (b) (a)
Answer:(B)
62. Assertion (A) : The Indian economy
could survive in the recent
global recession due to its
strong banking system.
Reason (R) : The Indian economy
contains a large amount of
black money.
Codes :
(A) Both (A) and (R) are correct
and (R) is the explanation of
(A).
(B) Both(A) and (R) are correct,
but (R) is not the correct
explanation of (A).
(C) (R) is correct, but (A) is not the
appropriate assertion of (R).
(D) Both (A) and (R) are incorrect
Answer:(B)
63. Assertion (A) : Most of the
development bank in India
have setup private commercial
banks after the introduction of
capital adequacy norms.
Reason (R) : Development banks in
India have not adhered to their
basic objectives.
Codes :
(A) (A) and (R) both are correct,
and (R) is correct explanation
of (A).
(B) (A) and (R) both are correct,
but (R) is not a correct
explanation of (A).
(C) (A) is correct, but (R) is
incorrect.
(D) (R) is correct, but (A) is
incorrect.
Answer:(C)
64. Match the following items of List-I
with List-II :
List – I List – II
(a) Brettonwoods (i) 1947
conference
(b) General Agreement (ii) 1964
on Trade and Tariffs
(c) ACCRA conference (iii) 1944
(d) United Nations
Conference on Trade (iv) 2008
and Development
Codes :
(i) (ii) (iii) (iv)
(A) (b) (d) (a) (c)
(B) (b) (d) (c) (a)
(C) (b) (c) (d) (a)
(D) (c) (a) (b) (d)
Answer:(A)
65. The forces that lend momentum to
the process of globalization have
been identified by Michael Porter
include the following :
(i) Fluid global capital market.
(ii) Technological restructuring.
(iii) Decreasing religious command.
(iv) Ethnic decontrol.
(v) New-global competitors.
(vi) End of the ‘cold war’ in 1990s.
Codes :
(A) (vi), (v), (iv) and (iii)
(B) (vi), (iii), (ii) and (i)
(C) (vi), (v), (ii) and (i)
(D) (iv), (iii), (ii) and (i)
Answer:(C)
66. Statement (I) : Green Box subsidies
include amount spent on
Government services such as
research, disease control,
infrastructure and food
security.
Statement (II) : Blue Box subsidies
are certain direct payments
made to farmers, to limit
production, and are certain
government assistance
programmes to encourage
agriculture and rural
development.
Codes :
(A) Statement (I) is correct, but (II)
is not correct.
(B) Statement (II) is correct, but (I)
is not correct.
(C) Both statement (I) and (II) are
correct.
(D) Both statement (I) and (II) are
incorrect.
Answer:(C)
67. Assertion (A) : The major economic
powers have succeeded in
creating a new international
regime where the profits and
the dominance of their
transnational corporations will
be the decisive consideration.
Reason (R) : This regime will
legitimise the process of
progressive erosion of the
sovereign economic space of
the third-world countries.
(A) Both (A) and (R) are correct,
and (R) is the right explanation
of (A).
(B) Both (A) and (R) are correct,
but (R) is not the right
explanation of (A).
(C) Both (A) and (R) are incorrect.
(D) (R) is correct, but (A) is not
correct.
Answer:(B)
68. Assertion (A) : The ‘Balance of
Payments’ presents a classified
record of all receipts on
account of goods exported,
services rendered and capital
received by ‘residents’ and
payments made by them on
account of goods imported and
services received from capital
transferred to ‘non-residents’ or
‘foreigners”.
Reason (R) : The ‘Balance of
Payments’ of a country is a
systematic record of all
economic transactions between
the ‘residents’ of a country and
the rest of the world.
(A) Both (A) and (R) are correct
and (R) is the right explanation
of (A).
(B) Both (A) and (R) are correct,
but (R) is not the right
explanation of (A).
(C) (R) is correct, but (A) is not
correct.
(D) Both (A) and (R) are incorrect.
Answer:(A)
Answer:(D)
70. Which of the followings are not
effect of dumping on importing
country ?
(i) Domestic industry might be
affected adversely by a decline
in sales and profits.
(ii) If dumping is continued for a
longer period, survival of the
domestic industry may be
threatened.
(iii) Dumping may create BOP
problems for the country.
(iv) It finds market for its surplus
production.
Codes :
(A) (i), (ii), (iii) and (iv)
(B) (ii), (iii) and (iv)
(C) (iii) and (iv)
(D) Only (iv)
Answer:(D)
71. Donation to National Children’s
Fund will come in which of the
following deduction under Sec. 80G
of Income Tax Act, 1961.
(A) 100 percent deduction without
any qualifying limit.
(B) 50 percent deduction without
any qualifying limit.
(C) 100 percent deduction subject
to qualifying limit.
(D) 50 percent deduction subject to
qualifying limit.
Answer:(B)
72. If the taxable income of a domestic
company for the Assessment Year
2011-12 is Rs 9,00,000, its tax liability
will be
(A) Rs 2,76,800 (B) Rs 2,78,100
(C) Rs 3,70,800 (D) Rs 3,70,880
Answer:(B)
73. Unabsorbed depreciation which
could not be setoff in the same
assessment year, can be carried
forward upto
(A) 4 years
(B) 8 years
(C) 10 years
(D) Indefinite period
Answer:(D)
74. If the book profits of a partnership
firm is Rs 1,10,000, the remuneration
admissible to working partners under
Sec.40(b) of the Income Tax Act,
1961 is
(A) Rs 1,10,000
(B) Rs 1,50,000
(C) Rs 99,000
(D) None of the above
Answer:(B)
75. Which of the following expenses is
inadmissible while computing
income from other sources ?
(A) Interest paid on amounts
borrowed to meet tax liabilities.
(B) Collection charges paid to the
banker or any other person to
collect interest/dividend.
(C) Interest on loan taken to invest
in securities.
(D) Depreciation on let-out
machinery and plant.
Answer:(A)
Commerce 2013 June Paper 3 Solved (Conduct 30 June 2013)
Reviewed by Australian Stock Exchange Inc
on
04:31:00
Rating:
Reviewed by Australian Stock Exchange Inc
on
04:31:00
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