NTA UGC NET/JRF Exam, June 2019 Commerce (Morning-Shift)

Total Questions: 100

21. Miller -Orr model is used in the management of

Correct Answer: (d) Cash
Solution:

The Miller-orr-model of cash management is developed for businesses with uncertain cash inflow and outflow. This approach allows lower and upper limits of cash balance to be set and determine the return point (target cash balance).

This is different from the BaumolTobin model, which is based on the assumption that the cash spending rate is constant.

22. Deduction u/s 37(I) is allowed under tax laws for those expenditures which are

Correct Answer: (a) revenue
Solution:

According to section 37 (i) of the income tax act, 1961, any expenditure (not being expenditure of the nature described in sections 30 to 36 and not being in the nature of capital expenditure or personal expenses of the assesses), laid out or expended wholly and exclusively for the purpose of the business or profession shall be allowed in competing the income chargeable under the head "profit and gains of business or profession.
• Expenditure is not of nature as described in section 30 to 36 of the act.
• Expenditure is revenue in nature not capital in nature.

23. Following are the steps in the activity-based cost allocation :

(A) Identification of The main activities
(B) Collection of cost pool
(C) Determination of the activity cost drivers
(D) Calculation of activity driver rate
(E) Charging the cost of activities to products
Select the correct sequence of the above steps:

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

Activity based costing (ABC) is an accounting technique that utilizes cost attachment rather than cost allocation to determine the actual cost of products and service:
The ABC can be performed by-
(i) Identifying activities
(ii) Determining the cost for each activity
(iii) Determining cost drivers (cost drivers are the factor that affect the cost of an activity, e.g. poor quality)
(iv) Collecting activity data
(v) Calculating product cost

24. In the context of the above two statements, which one of the following option is correct?

Assertion (A) : Reserve Bank of India is an important regulatory and administrative authority to execute FEMA Provisions.

Reason (R) : Being monetary authority and custodian of foreign exchange, Reserve bank of India enjoys requisite expertise of FEMA administration.

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

Assertion (A): Reserve Bank of India is an important regulatory and administrative authority to execute FEMA provision.
Therefore Assertion (A) is the correct.
-Reason (R): Being monetary authority and custodian of foreign exchange Reserve Bank of India enjoy requisite expertise of FEMA administration.
-Therefore Reason (R) is the correct and (R) is the correct explanation of (А)

25. New reform in Indian banking system include

(A) Digitization of bank operations
(B) Banking consolidation
(C) Borrowing from Government
(D) Agency work
Choose the correct option from the following:

Correct Answer: (a) (A) and (B)
Solution:

New reform in Indian banking system include
•Digitization of bank operations
• Banking consolidation
• Mobile banking Cashless banking
•Plastic currency, etc

26. Which of the following committee is related to the investor protection?

Correct Answer: (b) N.K. Mishra Committee
Solution:

N.K. Mitra committee is related to investor protection, in April 2001.

27. In the context of the above two statements, which one of the following codes is correct?

Statement (I): t-test and F-test are based on the identical assumption.
Statement (II): t-test is used for comparison between two groups whereas F-test is used for comparison between more than two groups.

Correct Answer: (a) Both the Statements (I) and (II) are correct
Solution:

Statement-I: Explanation-
The common assumption made when doing a T-test include those regarding the scale of measurement, random sampling, normally of data distribution, adequacy of sample size and equality of variance in standard deviation.

The same assumption are consideration while doing an f-test
- Thus, the statement I is correct

Statement-II Explanation-
• A T-test used of compare the means of two population in contrast, f-test is used to compare two population varies.

•While T-test used for comparison between two groups f-test is used to test the significance of multiple variables at once.
- Thus statement II is also correct.

28. Match List-I with List-II: List-I


Choose the correct option from those given below:

Correct Answer: (c) (A)-(iv); (B)-(iii); (C)-(ii); (D)-(i)
Solution:

The following are of the correct match:-

29. When a company distributes its products through a channel structure that includes one or more resellers, it is known as

Correct Answer: (b) indirect marketing
Solution:

Indirect marketing:- is a way for a business to market their product, idea or service without having to use the methods of direct advertising and marketing.
Examples of indirect marketing include
•Search engine
•Content marketing
•PR
•Social media
• Referrals

30. In the context of the above two statements, which one of the following codes is correct?

Assertion (A): At times, a business may face the situation where it has to shut down its operations.
Reason(R): If the revenue is less than its variable cost, the operation should down.

Correct Answer: (b) (A) and (R) both are correct and (R) is the right explanation of (A)
Solution:

Assertion (A): At times, a business may face the situation where it has to shut down its operations.
-Therefore, assertion (A) is the correct statement
Reason (R): If the revenue is less than its variable cost, the operation should be dore down.
-Therefore, Reason (R) is correct and (R) is the right explanation of (A)