NTA UGC NET/JRF Exam, Dec. 2020/June 2021 (Commerce) Shift-I

Total Questions: 100

1. Given below are two statements, one is labelled as Assertion A and the other is labelled as Reason R

Assertion A: Quick ratio is a more penetrating test of liquidity than the current ratio, yet a high quick ratio does not necessarily imply sound liquidity.

Reason R: A company with a high value of quick ratio can suffer from a shortage of funds if it has slow-paying, doubtful and long duration outstanding debtors

In light of the above statements, choose the most appropriate answer from the options given below

Correct Answer: (c) Both A and R are correct and R is the correct explanation of A
Solution:

2. Match List-I with List-II

List-IList-II
A.Ind - AS: 1I.Provisions, Contingent Liabilities and Contingent Assets
B.Ind- AS: 29II.Consolidated Financial Statements
C.Ind-AS: 37III.Presentation of Financial Statements
D.Ind-AS: 110IV.Financial reporting in Hyperinflationary Economies

Choose the correct answer from the options given below

ABCD
(a)IIIIIIIV
(b)IIIIVIII
(c)IVIIIIII
(d)IVIIIIII
Correct Answer: (b)
Solution:Match List-I & List-II
List-I (Nature of commodities)List-II (Income Elasticities of Demand)
A. Ind-AS : 1presentation of financial statements
B. Ind-AS : 29Financial reporting in hyperinflationary Economics
C. Ind-As : 37provisions, contingent liabilities and contingent Assets
D. Ind-AS : 110Consolidated financial statement

3. Arrange the following steps in the process of hypothesis testing in proper sequence:

A. Select the level of significance

B. Setup null and alternative hypothesis

C. Establish the decision rule

D. Performance computations

E. Select test statistics

F. Draw conclusion

Choose the correct answer from the options given below

Correct Answer: (d) B, A,E, C, D, F
Solution:

following are the steps in the process of hypothesis testing in proper sequence:

  • Setup null and alternative hypothesis
  • Select the level of significance
  • Select test statistics
  • Establish the decision rule
  • performance computations
  • Draw conclusion

4. Fill in the blanks

For a holding company, all pre-acquisition profits/losses of the subsidiary company are _____, while all post-acquisition profits/losses of the subsidiary company are _____.

Correct Answer: (b) capital profits/losses, revenue profit/losses
Solution:

Capital profit/losses, revenue profit/losses

  • For a holding company, allare ecquisition profits losses of the subsidiary company are capital profits/losses of the subsidiary company are capital profit/losses. While all post-acquisition profit/losses of the subsidiary company are reveue profit/losses. Note: Pre-acquisition profit is the profit earned by the company before it is being acquired. It is treated as capital profit and not revenue profit & is not available for distribution of divided.

5. Which one of the following statements are TRUE about the contract of Bailment?

Correct Answer: (c) Hiring of bank locker is a contract of Bailment
Solution:

Hiring of bank locker is a contract of Bailment.

Key points:

Section 148 of Indian Contract Act, 1872

A bailment is the delivery of goods by one person to another for some purpose, upon a contract that they shall, when the purpose is accomplished, be returned or otherwise disposed of according to the directions of the person delivering them.

  • The person delivering the goods is called the 'baitor'. The person to whom they are delivered is called the bailee."

6. Arrange the steps of market segmentation process in the proper sequence

A. Segment "Acid Test"

B. Segment Attractiveness

C. Need Based Segmentation

D.Segment Positioning Profitability and Segment

E. Segment Identification

Choose the correct answer from the options given below

Correct Answer: (c) C, E, B, D, A
Solution:

Following are the steps of market segmentation process in the proper sequence.

  • Need based Segmentation
  • Segment Identification
  • Segment Attractiveness
  • Segment profitability and Segment positioning
  • Segment "Acid-Test

Notes: Market Segmentation is a marketing concept

which divides the complete market set up into smaller subsets comprising of consumers with a similar taste, demand and preference. According to philip Kotler, "Market segmentation is the sub dividing of market into homogeneous sub section of customer, where any sub-section may conceivably be selected as a market target to be reached with a distant marketing mix."

7. 'A', 'B' and 'C' are partners sharing profits in 0 the ratio of 3 : 2 : 1. 0" is admitted for 1th/6 share and 'C' should retain his original share.

The sacrificing ratio of A and B will be:

Correct Answer: (c) 3:2
Solution:

Calculation of new profit sharing ratio :-

8. If each value in a given set is increased by K, it will:

Correct Answer: (b) No change in Pearson's coefficient of skewness value
Solution:

If each value in a given group is increased by a rate of K, then there will be no change in the Pearson's

coefficient of heterogeneity. Karl Pearson's coefficient of Skewness =Hence, S.D. Standard Deviation

9. The technique of marginal costing is based upon which of the following assumptions:

A. Fixed cost will tend to remain constant or unchanged for the entire volume of production

B. Variable cost remains constant per unit of output irrespective of the level of output

C. There will not be any change in pricing policy due to change in volume, competition, etc.

D. Operating efficiency of the firm may increase or decrease Choose the correct answer from the options given below:

Correct Answer: (c) A, B, and C only
Solution:

The technique of marginnal costing is based upon the following assumptions:

  • Fixed cost will tend to remain constant or unchanged for the entire volume oof production.
  • Variable cost remains constant per unit of output irrespective of the level of output.
  • There will not be any change in pricing policy due to change in volume, competion etc.
  • All elements of cost-production, admiistration and selling and distribution can be segregated into fixed and variable components.
  • The volume of production or output is the only factors which influence the cost.

10. Fill in the blanks

The collapse of Eastern Europe in ______ and USSR in ______ lead to emergence of the transitory economies.

Correct Answer: (c) 1989, 1991
Solution:

The collapse of Eastern Europe in 1989 and USSR in 1991 lead to emergence of the transitory economies.

A transition economy is an economy which is changing from a centrally planned economy to a market economy. Transition economies undergo a set of structural transformations intended to develop market-based institutions. These include economic liberalization, where prices are set by market forces rather than by a central planning organisation, removal of trade barriers, push to privatize state-owned enterprises etc.