NTA UGC NET/JRF Exam, June 2025 (Commerce)

Total Questions: 100

41. The working of current Purchasing Power Accounting requires classification of balance sheet items into Monetary Items and NonMonetary Items. Which of the following is a Non-Monetary Item as per current Purchasing Power Accounting?

Correct Answer: 4. Inventories
Solution:In Current Purchasing Power (CPP) Accounting, balance sheet items are classified as:
• Monetary Items: Fixed in terms of currencу (Cash, Debtors, Creditors, Debentures, etc.)
• Non-Monetary Items: Not fixed in monetary terms; their values change with inflation (Inventories, Fixed Assets, etc.)
Among the given options:
1. Cash - Monetary Item
2. Debentures - Monetary Item
3. Debtors - Monetary Item
4. Inventories - Non-Monetary Item (as their value fluctuates with price level changes)

42. Arrange the following steps of Multinational Capital Budgeting in correct order:

A. Estimate net cash flow from the project
B. Determine net investment outlay
C. Apply appropriate evaluation technique
D. Identify appropriate discount rate
Choose the correct answer from the options given below:

Correct Answer: 4. B, A, D, C
Solution:Correct sequence of steps in Multinational Capital Budgeting:
B. Determine Net Investment Outlay - Compute initial project cost.
A. Estimate Net Cash Flow from the Project - Forecast expected inflows/outflows.
D. Identify Appropriate Discount Rate - Consider country risk, cost of capital.
C. Apply Appropriate Evaluation Technique - Use NPV, IRR, etc., to assess viability.
Correct sequence: B → А → D → C.

43. Which of the following Ind AS specifically deals with consolidated financial statements?

Correct Answer: 3. Ind AS 110
Solution:Ind AS dealing with Consolidated Financial Statements is:
Ind AS 110: Consolidated Financial Statements - It lays down principles for presenting consolidated financials where a parent company controls one or moте subsidiaries.
Other options:
Ind AS 29 - Financial Reporting in Hyperinflationary Economies
Ind AS 101 - First-time Adoption of Indian Accounting Standards
Ind AS 41 - Agriculture.

44. Which of the following types of FDI includes creation of new assets and production facilities in the country?

Correct Answer: 4. Greenfield investment
Solution:FDI involving the creation of new assets, infrastructure, and production facilities is known as Greenfield Investment.
• Brownfield involves acquiring existing assets.
• Mergers and Acquisitions involve taking over existing companies.
• Strategic alliances are partnerships without direct ownership.
Thus, Greenfield is new infrastructure creation.

45. What is the Harmonic Mean of two numbers whose Arithmetic Mean and Geometric Mean are 30 and 24 respectively?

Correct Answer: 3. 19.2
Solution:

Given: Arithmetic Mean (A.M.) = 30
Geometric Mean (G.M.) = 24
Let the two numbers be x and y.
From Arithmetic Mean:

46. What is the primary liability of the drawer of a bill of exchange or cheque?

Correct Answer: 1. Liability to compensate the holder in case of dishonour.
Solution:The primary liability of the drawer of a bill of  exchange or cheque is to compensate the holder in case of dishonour.
• If the drawee fails to accept or pay, the drawer becomes liable to compensate for the loss.
• The drawee is primarily liable to pay upon acceptance or presentation.
Thus, the drawer's liability is contingent on dishonour.

47. In case of transmission of shares, which of the following is correct?

A. No instrument of transfer is required.
B. Transmission of securities is generally made without any consideration.
C. Shares continue to be subject to the original liabilities.
D. Transmission takes place on death or insolvency of a holder of securities.
E. Stamp duty is payable on transmission of securities.
Choose the correct answer from the options given below:

Correct Answer: 1. A, B, C and D only
Solution:Correct statements about Transmission of Shares:
A. No instrument of transfer is required - Transmission occurs by operation of law.
B. Made without consideration - It is not a sale or transfer for value.
C. Original liabilities continue - Shares retain their obligations post-transmission.
D. Takes place on death or insolvency of a holder - It happens due to legal events, not voluntary actions.
E. Stamp duty is NOT payable on transmission - Stamp duty applies on transfer, not transmission. Thus, correct set: A, B, C, D.

48. Which of the following statements are correct with regard to tax avoidance?

A. Tax avoidance is legitimate arrangement of affairs in such a way so as to minimize tax liability.
B. There is an element of malafide motive involved in tax avoidance.
C. Тах avoidance takes into account the loop-holes of law.
D. Tax avoidance is intentional attempt to avoid payment of tax after the liability to tax has arisen.
E. Tax avoidance is same as tax omission.
Choose the correct answer from the options given below:

Correct Answer: 1. A and C only
Solution:Statements on Tax Avoidance:
A. Correct - Tax avoidance involves legitimate arrangements to reduce tax liability within the law.
B. Correct - Though legal, tax avoidance involves exploiting loopholes with an intent that may be malafide.
C. Correct - It relies on legal loop-holes to minimize tax.
D. Incorrect - Describes tax evasion, not avoidance.
E. Incorrect - Tax avoidance is not the same as tax omission (which is accidental).
Correct set: A, B, С.

49. Arrange the following steps of New Product Development in sequential order:

A. Product Development
B. Feasibility Analysis
C. Concept Development and Testing
D. Identifying Prospective Customers
E. Idea Generation
Choose the correct answer from the options given below:

Correct Answer: 3. E, D, C. B, A
Solution:Correct sequence of New Product Development Process:
E. Idea Generation - First step, gathering raw ideas.
D. Identifying Prospective Customers - Understand target market early.
C. Concept Development and Testing — Refine idea and test its feasibility.
B. Feasibility Analysis - Analyze financial, technical, and market feasibility.
A. Product Development — Build the actual product.
Sequence: E → D → C→ B→ А.

50. Which of the following are properties of regression coefficient?

A. The coefficient of correlation and the two regression coefficients have the same signs.
B. The coefficient of correlation is the harmonic mean between the regression coefficients.
C. If one of the regression coefficient is greater than unity, the other must also be greater than unity.
D. If one of the regression coefficient is greater than unity, the other must be less than unity.
E. The regression coefficient are independent of change of origin but not of scale.
Choose the correct answer from the options given below:

Correct Answer: 4. A, D and E only
Solution:Properties of Regression Coefficient:
A. Correct - The regression coefficients and correlation coefficient always have the same sign.
D. Correct - If one regression coefficient is greater than unity, the other must be less than unity (because product of regression coefficients = square of correlation coefficient ≤1).
E. Correct - Regression coefficients are independent of origin, but affected by change of scale.
Thus, correct statements: A, D, E.