Qualifying

Test for
Promotion to the Position of Assistant Manager
in Kerala State Financial Enterprises Limited
PAPER II
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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. All questrons
carry equal malks. There are four alten.rative answers for every question. For each wrong
answer one fourih (0.25) of the marks assigned to that question will be deducted as penalty. If
a candidate gii es more than one ansu'er, it will be treated as wrong even if one of the given
answers happencd to be corect; there will be same penalty of a wrong answer. If a question
is left blank, there will be no penaltl for that question. Candidates may please indicate their
answers by darkening the bubbles against the question nutnbers in the OMR sheet provided,
rvith black inl: ball point pen. Please read the instructions in the OMR sheet carefully to
undersland the corect method ofnrarking answers.
1. How ma:il accounts are thei'e iri a three column Cash Book?
A. Tu'o B. Three C. Four D. One
2. Mr. T issued cheques \,'"'ofth { 25000/- in March 2013 out of which cheques wofih
< I 0,000/- only were presented lor payrnent by 3 1" March 2013. Balance as per pass
book was < 45,000/-. What u'ould be the balance as per Cash Book?
A. <20.000/- B. < 2s.000/- c. < 15,000/- D. < 30,000/-
3. .Anil statcd a business lr'itl capitai of t 50,00C1. Profit for the year is { 20,000 and
dlawings T 3001 per n; on.ll-r. Ilis closing capital will be
A. { 69.70C,/ B r i-:.600i- c. < 7i,600/- D. < 66,400/-
4. Tiie anor',1', i:lpendeii i.ri rrl: aci','eilisement canpaign to launch a nerv product is
A. Re'"enue Experiiiiirc
C. Revenue Receipt
5. Wages paid for the construction
aJan-
A. Clerical error
C. Enor of Principle
6. When the total of Trial Balance
transferred to -
A. Trading Account
C. Balance Slieet
B. Capiial Expenditure
D. Deieired Revenue Expenditure
of offlce building was debited to Wages A/c.
B. Enor of Omission
D. Enor of Commission
It is
is not reconciled, the difference is temporarily
B. Profit and Loss Account
D. Suspense Account
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7. Unlavourable bank balance means
A. Credit balance in Cash Book B. Credit balance in Pass Book
C. Debit balance in Cash Book D. None of these
8. A trader sells goods at cost+25Yo. The sales during a period amounted <4,00,000/-.
The profit is -
A. < 80,000/- B. < 1,00,000/- c. < 1,80,000/- D. < 40,000/,
9. Trial Balance is a./an
A. Account B. Statement C. Summarv D. Joumal
10. Joumal records the transaction ofthe firm in a -
A. Chronological manner B. Periodical manner
C. Analltical manner D. Summarized manner
i i . Goods u orlh { i
,0001
taken b,r' piopiietor for peisonal use shouid be debited to
A. Salcs A/c B. Drawings A/c C. Capital A/c D. Purchases A./c
12. Which oirc of thc following is knonn as 'Principal Book of Account'?
A. Joumal B. Trial Balance C. Ledger D. Balance Sheet
13. A Trial Balance contains the balance of-
A. Onli'Real and Nominal accounts B. Only Personal and Real account
C. Onl;,, Nominai and Personal accounts D. All accounts
14. If thc cjebii .qntl credit aspects of a transaction are recorded in the Cash Book, it is a -
A. Colira Entri- B. Compound Joumai Entry
C. Sinrr-ric llntiv D. Single Entry
15. In pcitr' r:lsl. bcck. the systenl follor,'ed is
A. Cir:b svsienr B. Accrual sy-cteii
C. Imy,;
':r1
s1'stem D. Mercantile sys'itir:
16. Which accounting concept requires that foreseen losses shouiC be anticipated an$
taken into account immediately?
A. The consistency concept B. The Prudence concept
C The accruals concept D. The going concem concept
17. Which of the following statement is true?
A. A debit records an increase in liabilities
B. A credit records an increase in liabilities
C. A debit records a decrease in assets
D. A credit records a decrease in capital
18. V,/hicli one of the lolJorving would occnr if the purchase of computer stationery rvas
dcbited to Computer Iiquipment Account?
l'.. An overstatemeirt ol profit and an overstatement ofnon current assets
B. An understatemcnt ofprofit and an overstatement ofnon current assets
C. An overstatement ofprofit and an understatement ofnon current assets
D. An understatement olprofit and an understatement ofnon cuffent assets
19. Users olfinanciai staternents include
./r.. Sirareholders B. Government C. Vendor D. All of these
20. V,'hen fixed assets ars sold for cash -
A. Total assets rvili increase B. There is no change in total assets
C. Total assets u,ill decrease D. Total liabilities will increase
21 . The Cr.rstomer who has acquired goods on credit basis and ot'es money to the
hu:incss is called
h. Ciedito;- !. Dcblcr C. Ilvestor D. Shareholdcr
22. l'he net profit as arrived a1 by preparing the Profit and Loss account of a sole
proprietorship concem is transferred to -------------
A. Liabilities side of Balance sheet B. Assets side of Baiance sheet
C. Capital Account of the proprietor D. Drawings Account of the proprietor
23. il purchase retum of { 8401 has been wrongly posted to the debit side of the Sales
Retum A/c but had been correctly eniered in the Supplier's Account, the total of the
trial balance would sliou -
A. The cledit side to be { 8,{0/- more than debit side
B. The debit side to be { 840/- more than credit side
C. The credit side to be < 1,680/- more than debit side
D" Tiic clel,.ii side 1o be < 15E0i- more than credit side
24. Scir,: eri.is arc listcd L',elor.'.. Statr-
.,vhich
of these rvill no1 l':: ici ei:l':i by the Tri:l
balar,ce
(i) Compensatingerrors
(ii) Errorsofprinciple
(iiD Wrong balancing of an account
(iv) V/rong totaling ofan account
A.
(i), (ii)
&
(iiil
B.
(ii), (iii)
&
(iv)
c. (D & (iD D. (i), (iii) & (iv)
25. Follou'ing are the salient features of bank reconciliation statement except -
(i) Ar.rv undue delay in the clearance of cheques can be located
(iD
'fo
locate errors and frauds
(iiD lleconciliation is done by the bankers
(iu) To find the actual position ofthe bank balance
A. (i), (ii) and (iii) B. (ii), (iii) and (iv)
C. (ii) and (iv) D. (iii) only
26. Which one of the following does not follow dual aspect?
A. Increase in both asscts and liability
B. Increase in one asset and capital
C. Increase in one asset and decrease in other
D. None of these
27. z\ sun, o1- T 25,{i001 i"q speili irn or,eriiauling of a macl.rinery purch:.sei second hand.
The anoui;'. expen<ied is treatei as
A. Capiial Expenditwe
B. Revenue Expenditure
C. Defened Revenue Expenditure
D. None o{ above
28. A fimr received cash fbr a debt that was previously written off. Which one of the
following is the correci double entry to record the cash received?
Debit Credit
A. Bad debis A/c Debtors A,/c
B. Cash .aJc Provision for Bad Debts A/c
C. Provision for Bad Debtor h/c Debiors A./c
D. Casir A./c Bad Debts Recovered 1i,/c
29. Wiich oi'tl;: iollrrv,,ing itei,r dces th,,'st:itement belorv describe'J
"A possil:le obligaticn thal ai'ises fror:r past cvents and u'licse erisience r.vill be
confirrne,i onll' by thr: occurrence oi non occunence of one or 1.i'roie r,ncertain future
events".
A. A provision B. A cunent liabilitl'
C. A contingent Liability D. A contingent Asset
30. A trader supplies the follorving information
Sundry Debtors on 01-01-2012 1,00,000.00
Sundry Debtors on31-12-2012 90,000.00
Total receipts during 2012 (including cash sales <50,000/-) 8,50,000.00
What is the credit sales during 2012?
A. < 7,90,000/- B. < 8,10,000/-
c. < 8,60,000/- D. < 8,40,000/-
3 1 . Rectification of error is recorded in
A. Cash Book
C. Sales Book
B. Purchase Book
D. Journal Proper
32. Which of the following statement is incorrect ?
A. Creciit purchase ofgoods are recorded in Purchase Book
B. Credit sale ofassets are recorded in Sales Book
C. Cash Account rvill always have a debit balance
D. Cash discount is allowed by Creditor to his debtor
33.A chequc for {3,0001 received from A & Co. was dishonoured and debited to
discouni A/c. Dae ic rectification of this error, net profit will
A. Incrcase by i 6,000/- B. Increase by t 3,000/-
C. Decrease by < 3.000/- D. Decrease by < 6,000/-
34. ------------ is a true copy ofthe customer's account as kept in the books ofthe bank
A. Cash Book B. Joumal Proper
C. Current Accounl D. Pass Book
35. The total Purchase Book is posted to
A. The debit of Trading A/c
B. The debit of Purchase A./c
C. The credit of Trading A"/c
D. Tbr credir of Purchase A/c
36. For re:r-';'e'rint salr.ll cuistanding. the loilowing eltry is passed
A. Salari' Outstanding A/c Dr.
To SalarY A-lc
B. Salary A.ic Dr.
To Salary Outstanding A/c
C. Plofit and loss A/c Dr.
To Salary Outstanding A./c
D. None of these
37. Business letters produce immediate effect because they are:
A.Infonnal B.Formal C. Interesting D. Brief
38, Simplicity in writing means essentially:
A. Plainness
B. The use ofsimple sentences
C. The use olsimple words
D. The use of simple tense
39. MoCern business letters are usually written in:
A. Semi-block style
B. Indented style
C. Simplified style
D. Fuli
-
block style
40. Editing involves checking a document for factual accuracy, logical fiow, conciseness
and ---------
A. Spelling.
B. Pormat errors.
C. Clarity and tone
I-). Granimar-
41. Wiricl: cf the follorving is nonnally not part of a memo?
A. Ciosing
B. Heading
C. Discussion section
D. Salutation
42. In issuing instructions, one should avoid the:
A. Subjunctive form
B. Active voice
C. Imperative form
D. Passive Voice
. 43. TecLlical accuracy of language rneans:
A. Corectness of gramn.ier', spelling and punctua-'il,ns
B. Simpiicit,v
C. Di;ect narrative
D. Active
voice
Read the follon,ing passage carefully and answer the questions from 44 to 49.
Influence of nature of organizations on Creativity rvill make an interesting anci useful
study. In 1776, Adam Smith revolutionized productivity by division of iabour. Workers
benefited by developing specialized knowledge, skill and experience. Many years later
Smith's early thinking on restructuring organization was complemented by Weber. Weber
characterized the functioning of an organization machinery as guided by principles of "fixed
and
jurisdictional
areas, generally ordered by rules, laws or administrative regulations." The
regulation and control of all relationships was impersonal and was reduced by a set of
previously established rules. All aclivities were ofroutine nature. The officials vrere protected
by security of lile long tenure, fixed salary and old age pension. Their careel followed a
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hierarchical patlern. The officials perlbrmed in a highly controlled, rigid, hierarchical
environment. Each employee knew their place and also their clearly defined and explicitly
assigned duties.
Traditional models of organizations had as their goal. reduction of uncertainty and
maximization of predictability. Roles are rigidly pre determined. Specific functions and
jurisdictions
are categorically delineated so as to preclude ambiguity. Jurisdictions are
unequivocai. Proccdures are clearly laid out. Emphasis is on efficiency and productivity.
Hierarchies are established for ensuring accountability ofeach rvorker to the Supervisor. The
traditional approach was to ensure productivity through exercise of control. Traditional
organizational structures and patterns provide an inhospitable and non congenial atmosphere
for the expressiol ofl creativity.
44. The themc discussed in the passage i:
A. Traditional organizational structure Vs. Modem Slructure
B. The link betwcen the ideas of Smith and Weber
C. Ploductivity' and traditional organizational structuie
D. Clcativil;' r:,d orgariizaiiorlai stnlcture
45. Ina.dverleltil'. Smrth and Weber contributed to
A. Many structural obstacles thai
qan
smother creativity
B. Increase<i productivity of employees through specialization
C. Hierarchicai character of organization with upu'ard movement from lower to higher
position
D. Calcificalion ofthe structure of organizations
46. Which ofthe following is true in an organizational context?
h. The efficier'c1' of policies baseri ol traditional concepticns oforganizations are being
vaiidateci
B. iirqovation and Creativity are sJ,nol.lymous
C. Tire degiee ofcontrol and tL; ievel of creativity ar': dilcriil proportional
D. The degree of inpersonaiiil' cl olganizational rules deternrines the level of innovatictr
cf ihe employecs
47. hr the light of Snilh's concept olciivision oflabor, \\-ebcr's burcaucratic structure ofar
organizatior can be said to be
A. Fundamental and elementary in nature
B. Path breaking
C. Against rvhat was propounded by Smith
D.An extension of what is said in Smith's theory
48. The organizational environment proposed by Smith and Weber nurtures
A. Creativity B. Lateral thinking
C. Established pattem of thinking D. Rigid tenitorial structure of labor
49. What is the meaning of the word categorical
A. Something which is amenable to categorization
B. Something which is expressed very clearly
C. Something which is easy to be categorized
D. Something which does not fit anywhere
Question
Numbers 50 to 53 pertains to the accounting practice in KSFE
50. Rate oldepreciation of offica equipment
A. 13.01 % 8.12.9r% c.13.91%
51. Regarding the Fixed Asset Register the depreciation is calculated from -
A. Date of receipt B. Date ofcash/ cheque payment
C. Date ofentry in records D. Date of actual use
52.
'|ccour.iting
enir,v lor v'riting off an asset
A. Deprecialior A/c
'fo
Dcplcciatiorr Reserve A/ c
B. Depreciation Reserve A./c
To Depreciation A./c
C. Depreciation Reserve A"/c
To Original Cost of the Asset
D. Depieciation A,/c
To \\'D\/ ol the Asset
D.20%
Dr.
Cr.
Dr.
Cr.
Dr.
Cr.
Dr.
Cr.
System (BAS), the basic and mosl important part of the
B. Customer Schemes
D. Bogus Surety
53. Depre :: i:r'. i,.rn Res:r"-,e shoulC be retained in the l-,ccks of Accounts until the -
A. As:rl rs ririticn ofl
B. A-.:,e1 is ciiroosed olf
C. Ass:t is subsiituted
D. WLli; is reduceC to nli
-54.
In KSFI Dra'rch P.uiornation
software is?
A. Custon.rer Register
C. Customer Group
55. In KSFE Branch Automation System (BAS), which one of the following can't be done
in authorization details form -
A. NFI]I, B. CVL C. RCL D. Joumal Register
56. In KSFE Branch Automation System (BAS) which one of the following mode of
payme i is not related to the NPDSC payment form?
A. DD/Cheque B. IB C. RSC D. GT
57. Which orle of the follorving is not true for the digital Computer
A. Ii derls ir ith discrete quaniities
B. Ii counts rather than nrcasuring
C. It represents the decinal number through a string ofbinary digits
D. lt is used primarily in Scientific applications
58.
'fhe
tv;o basic types of record access methods are
A. Sequential and random B. Direct and immediate
C. Sequential and indexed D. Online and real time
59. Tlie paiity bit is added for ------------ purpose
A. IiiCexing B. Coding C. Enor-detection D. Controlling
60. Different component on the motherboard of a PC Processor unit are linked by sets of
parailel electrical conducting lines. What are these lines called?
A. Conductors B. Buses C Connectors D' Con-nectivity
61 . l-i;; r,i
''ariage
of COil r,ie iis ------------- and -------------
A. Conpaci Size
;
Readabiiiiv
B. Compact Size
;
Speed
C. ReaCability
;
Speed
D. Lurv-Cost
;
Readabiliil
62. The rvord size of a tnicroprocessor refers to
A. Tire number of machine operations performed in a second
B. The amount of information that can be stored in a cycle
C. The amount of information that can be stored in a b)te
D. The maximum length of an English word that can be input to a Computer'
63. A distributec data processing configuration in u'hich all activities must pass through a
celitralil'lccaied Computer is called a -------------
A. Ring neir','oli: B. Spider network
C. Iliei'a:cliicai netr.voi'i' Li. Data control netrvork
64. -,1i cori:t,..i'.:i:i,.alicl cl\';cc iii,:.i conbines transmissions from s'-'l'eiai I'lO devices ir.ilc
orre li1r. is
A. Cor.rcentrator
B" Liodiher
C. Muitiplerer
D. Full-duplex line
65. The problem of thrashing is aflected significantly by -
A. Program sfucture B. Program size
C. Primary-storage Size D. None of the above
66. The process of converting analog signals to digital signals so that they can be
processed bi' a receiving computer is refened to as
A. Modulalion
B. Demodulation
C. Synchroniziirg
D. Asynchronizing
67. What is the name olthe software system which combines many independent function
into one package ?
A. Expert system B. Integrated system
C. Multi-adjustment system D Klowledge based system
68. A CPU's processing power is measured in
--------
A. IPS B. CIPS C. MIPS D. Nano-seconds
69. If a Computer had no decision-making function, it will be reduced to ?
A. Electrical machine
B. Counting machine
C. Slide rule
D. Addirrg machine
70. Which of the following is not part of a CRT?
A. Phospiior screen B. Shadow mark
C. Eleclron gurr D. Gas
Plasma
71. A tempcr'.,:'., .cioiage area altaciled to the CPU, for I/o operations is a -
A. Chami:i
B. Buffer
C. Regisle:
D. Core
72. The storage location in the internal storage ofa CPU are called -
A. Contents
B. Addresses
C. Locations
D. Intersections
73. What is the responsibiliff of the logical unit in the CPU of a Computer
-------------
A. To interpret instructions
B. To compa-re numbers
C. Tc coutrol flow of information
D. To do ilaths
q.ork
74. In TCP. a utii.rric sequence nitmber is assigned to each
A. B,r'te B. \Vold C. Message D. Segment
75. The tiAS sofi,:'arc in KSFI] is -
i) CentlalisedApplicationsSoftware
ii) Web based Software
Choose the best altemative from belorv
A. (i) is correct
B. (ii) is correct
C. Neither (i) nor (ii) is correct D. (i) and (ii) are conect
x-x-x-x
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