Food Corporation Of India General Awareness Model Questions

Food Corporation Of India Solved Questions

Management Trainee General Awareness Model Papers

1. According to the concept of conservation, the stock in trade is valued at—

• Cost price
• Market price
• Cost or market price which ever is higher
• Cost or market price which ever is lower

2. The concept of conservation will have the effect of—

• Over statement of assets
• Understatement of assets
• Understatement of liabilities
• Understatement of provision for bad and doubtful debts

3. Non-financial information is not recorded in accounts due to—

• Accrual concept
• Entity concept
• Dual aspect concept
• Money measurement concept

4. Balance in ‘Nazrana’s a/c’ in the books of lessee is shown in—

• Landlords a/c
• P&L a/c
• Balance sheet assets side
• Balance sheet liabilities side

5. The hire-buyer charges depreciation on—

• Cash price of the asset
• Hire purchase price of the asset
• Higher of the two
• Lower of the two

6. In hire-purchase system, hire-buyer can maintain his accounts under—

• Asset accrued method
• Total cash price method
• Any of the two methods
• None of these

7. If the rate of gross profit for department X is 25% of cost, the amount of gross profit on sales of Rs. 100000 will be-—

• Rs. 16667
• Rs. 20000
• Rs. 25000
• Rs. 33333

8. Provision for bad debts of a foreign branch is converted at—

• Opening rate of exchange
• Closing rate of exchange
• Average rate of exchange
• Rate applicable to debtors

9. If goods are transferred from ‘X’ department to ‘Y’ department at cost +25%, the amount of stock reserve on closing stock of Rs. 20000 in ‘Y’ department will be—

• Rs. 4000
• Rs. 5000
• Rs. 6000
• Rs. 3333

10. If out of the bills of Rs. 10000 discounted by the insolvent bills of Rs. 4000 are likely be dishonored, unsecured creditors will include in respect of them an amount of—

• Rs. 10000
• Rs.6000
• Rs. 4000
• None of the above

11. Partnership firm engaged in banking business can have maximum—

• 5 partners
• 10 partners
• 20 partners
• Any number of partners

12. Suppose, the partnership deed provides for a salary of Rs. 5000 p.m. to partner ‘X’. If ‘X’ withdraws only Rs. 3000 in a month, the remaining Rs. 2000 will be—

• Debited to his capital a/c
• Credited to his drawing a/c
• Credited to his current a/c
• Credited to P & L adjustment a/c

13. In absence of any provisions in the partnership agreement, partners can charge on the loans given by them to the firm—

• Interest at 6% p.a.
• Interest at 12% p.a.
• Interest at 15% p.a.
• No interest

14. A, B and C are partners sharing profits and losses in the ratio 4 : 3 : 2 D is admitted for 1/10th share, the new ratio will be—

• 4 : 4 : 3 : 2
• 4: 3 : 2: 1
• 5 : 4 : 3 : 2
• None of the above

15. A and B shared profit in the ratio of 3 : 2 C was admitted as a partner for 1/5th share. He acquires 3/20th from A and 1/20th from B. The new profit sharing ratio would be—

• 10:6:4
• 6:10:4
• 8:8:4
• 9:7:4

16. Goodwill of a firm of A and B is valued at Rs. 60000. Goodwill appears in the books at Rs. 24000. C is admitted for 1/4th share. He will be required to bring for goodwill—

• Rs.21000
• Rs.9000
• Rs. 15000
• Rs. 6000

17. A plant worth Rs. 800000 has been insured for Rs. 600000. The loss on account of fire is Rs. 500000. The insurance company under average clause will bear the loss to extent of—

• Rs. 500000
• Rs. 800000
• Rs.600000
• Rs. 375000

18. It is not an item of Income with reference to a voyage a/c—

• Passage money
• Freight
• Primage
• Address commission

19. The formats of the profit and loss account and Balance sheet in the case of a banking company have been revised w.e.f.—

• 1st April 1949
• 1st April 1991
• 1st April 1992
• 1st April 1956

20. If accrued outstanding premium is given in the trial balance of a general insurance company, then it will be shown in—

• Revenue Account
• Balance Sheet
• Both revenue Account & Balance Sheet
• None of the above

21. Inventory is valued at lower of the cost or net realizable value on account of the accounting principle of—

• Realization
• Consistency
• Conservatism
• None of the above

22. In the period of rising prices, LIFO method may result in—

• Lowering the profit
• Raising the profit
• Raising the tax liability
• None of the above

23. Given Total assets turnover 4 & Net Profits 10% , If Total Assets Rs. 50000 Net profit will be—

• Rs.15000
• Rs.10000
• Rs.25000
• Rs.20000

24. A company auditor addresses his audit report to-

• Board of directors
• Members
• Managing director
• Company secretary

25. Bonus shares means shares issued to—

• Workers
• Existing equity shareholders
• Preferential shareholders in lieu of dividend
• Debenture holders in lieu of interest