Assistant Manager Question Paper and Answer Key

PROVISIONAL ANSWER KEY
Question Code: 068/2024
Medium of Question- English
Name of Post: Assistant Manager
Department: Kerala Financial Corporation
Cat. Number: 091/2023
Date of Test : 12.06.2024

 

1. A promise is
A) A valid offer
B) A contract
C) An accepted offer
d) A valid agreement

2. An approach of tender to supply specific period it becomes
A) An agreement
B) A contract
C) A standing offer
d) None of these

3. A void agreement
A) is unlawful and illegal
B) is unenforceable by law
C) violate legal procedure
d) both A) and B)

4. The presentment for acceptance is required in case of a
A) Bill of Exchange
B) Cheque
C) Promissory Note
d) Both A) and B)

5. Hundi when paid up and cancelled is then called
A) Parpeth
B) Peth
C) Khoka
d) None of these

6. Preference shares are entitled to vote on every resolution placed before the company at any meeting if the dividend due on such shares are in arrears for a period of
__________or more.
A) 4 years
B) 3 years
C) 2 years
d) 1 year

7. Under the PF Act, 1952 “Insurance Fund” means
A) Unit linked Insurance Plan
B) deposit linked Insurance Fund
C) Employees’ Group Accident Insurance
d) medical Insurance Fund

8. Shareholders Section 162 is not applicable to
A) Listed Company
B) Specified IFSC Public Company
C) Private Company
d) Both B) and C)

9. Payment of Gratuity Act, 1972 is applicable to every shop or establishment within the meaning of any law for the time being in force in relation to shops and establishment in a State, in which ________ persons are or were employed on any day in the preceding 12 months.
A) 10 or more
B) 10
C) 20 or more
d) 20

10. On what grounds an employee will be disqualified from getting bonus ?
i. Fraud
ii. Riotous or violent behaviour while on the premises
iii. Theft, misappropriation or sabotage of any property of the establishment
A) Only i
B) Only ii
C) Only i and ii
d) All of the above

11. The document which provides information regarding the progress of each job at each operation is known as
A) Progress advice
B) Job card
C) Job ticket
d) Job order
Question Cancelled

12. Work certified at the end of the accounting year is valued at
A) Cost
B) Cost plus profit made date
C) Cost plus profit taken to Profit and Loss Account
D) Total profit of the contracted price
Question Cancelled

13. The differences between fixed and variable cost has a special significances in the preparation of
A) Flexible Budget
B) master Budget
C) Cash Budget
d) None of these

14. The stage when joint products are separated from each other is known as
A) Break-Even Chart
B) Angle of incidence
C) Split off point
d) None of these

15. mine “A” and “B” are at a distance of 10 kilometers and 15 kilometers from the factory. The cost per tonne-kilometer in the case of A is Rs. 3, while it is Rs. 2.5 in the case of mine B. The factory should procure coal from
A) mine A only
B) mine B only
C) Both from A and B in the ratio of 3 : 2
d) None of these

16. When profit volume ratio is 40%, sales value Rs. 10,000, the variable cost will be
A) Rs. 4,000
B) Rs. 6,000
C) Rs. 10,000
d) None of these

17. Opportunity cost helps in
A) Cost Ascertainment
B) Controlling of Cost
C) making managerial decision
d) None of these

18. Time and motion study is conducted by
A) Time Keeping department
B) Personal department
C) Payroll department
d) Work Study and Engineering department

19. In the case of Weighted average price method, the need for calculating a new issue price arises every time when
A) A new purchase is made
B) A new issue is made
C) Both a new issue and new purchase is made
d) None of these

20. Absorption means
A) Charging overhead to cost centres
B) Charging overhead to cost units
C) Both A) and B)
d) None of these

21. The ‘Bird-in-the-hand argument’ was given by
A) Walter model
B) m.m. model
C) Gordon model
d) Residual Income Theory

22. The risk-free rate of return of Alpha Traders is 6% and its market risk premium rate is 10%. If the company has an equity Beta of 75%, what will be the cost of the company’s equity as per CAPM ?
A) 9%
B) 16%
C) 4%
D) 12%
Question Cancelled

23. Which among the following statements are true as per Net Operating Income approach to capital structure decisions ?
A) Overall cost of capital (ko) and cost of debt (ki) are constant and cost of equity (ke) will decrease by use of more debt capital
B) Overall cost of capital (ko) and cost of debt (ki) are constant and cost of equity (ke) will increase by use of more debt capital
C) Cost of equity (ke) and cost of debt (ki) are constant and the overall cost of capital (ko) will decrease by use of more debt capital
d) Cost of equity (ke) and cost of debt (ki) are constant and the overall cost of capital (ko) will increase by use of more debt capital

24. BCG Ltd. expects annual sales of 4000 units and the firm buy the product at Rs. 20 per unit. The ordering cost per order is Rs. 40 and the carrying cost as a
percentage of inventory value has been estimated at 10%. What is the Economic ordering quantity ?
A) 200 units
B) 800 units
C) 1600 units
d) 400 units

25. Read the following statements regarding working capital and select the right answer from the given alternatives.
Statement – I : With the increase in length of the production cycle, the need for working capital increases.
Statement – II : The term ‘Financing mix of working capital’ involves the proportion of long-term or short-term sources of finance to invest in current assets.
A) Statement I is true and statement II is false
B) Statement I is false and statement II is true
C) Both statements are true
d) Both statements are false

26. Which of the following statements are true ?
Statement – I : PB method determines the number of years required to recover initial investment.
Statement – II : The interpolation technique is used to calculate IRR.
Statement – III : NPV method is used to evaluate varying-sized projects.
Statement – IV : PI method is used to evaluate mutually exclusive projects.
A) Only statements III and IV are true
B) Only statements I and II are true
C) Only statements I, III and IV are true
d) Only statements I, II and III are true

27. According to Walter model, share value will be maximum at 100% dividend payout ratio, if
A) Rate of return is greater than cost of capital (r > k)
B) Rate of return is less than cost of capital (r < k)
C) Both rate of return and cost of capital are equal (r = k)
d) None of these

28. Which among the following is not a ‘short cost’ in cash management decisions ?
A) Borrowing cost
B) Transaction cost
C) Credit rating cost
d) Opportunity cost

29. Which of the following is not a part of credit terms during receivables management decisions ?
A) Credit period
B) Collection policy
C) Cash discount
d) Cash discount period

30. Which of the following are the assumptions of MM approach to dividend decision ?
i. There is perfect capital market
ii. Investors are rational
iii. There is no floatation cost
iv. There is no corporate tax
A) Statements i, ii and iii are true
B) Statements i, ii and iv are true
C) Statements iii and iv are true
d) All statements are true

31. A Resident Individual is planning to file his Income Tax Return for the financial year 2023 – 2024 on 10-07-2024. Which of the following is correct ?
A) Previous year is 2022 – 2023 and Assessment year is 2023 – 2024
B) Previous year is 2023 – 2024 and Assessment year is 2024 – 2025
C) Previous year is 2022 – 2023 and Assessment year is 2024 – 2025
d) Previous year and Assessment year is 2023 – 2024

32. A resident individual having a salary income of ` 10,00,000 and income from other sources of ` 50,000. Eligible standard deduction is ` 50,000 and deductions under Sec. 80 C is ` 1,50,000. Which of the following statements are correct, based on the above data ?
i. Gross Total Income is ` 10,00,000
ii. Gross Total Income is ` 10,50,000
iii. Total Income is ` 8,50,000
iv. Total Income is ` 10,50,000
A) Statements i and iii are correct
B) Statements i and iv are correct
C) Statements ii and iii are correct
d) Statements ii and iv are correct

33. Which of the following is not an exempted income ?
A) Income from agriculture
B) Gratuity received by retiring employee
C) Sum assured received from a life insurance company
d) Bonus received by employees

34. Which of the following statement is incorrect with regard to the deductions under the old regime of Income Tax ?
i. maximum amount allowed as deduction of interest on housing loan for an individual assessee is ` 2,00,000.
ii. maximum amount allowed as deduction under Sec. 80 C is ` 1,50,000.
iii. Voluntary contribution to NPS up to ` 1,00,000 are deductible under Sec. 80 CCd1(B).
A) Statement i is incorrect
B) Statement ii is incorrect
C) Statement iii is incorrect
d) All statements are incorrect

35. Which of the following statements are true with respect to the direct tax in India ?
i. The levy and collection of direct tax is entrusted to the CBdT.
ii. The rate and slabs of income tax will be fixed and amended as per the Finance Act.
iii. Progressive system of taxation is followed for the Income Tax.
iv. Income Tax Act was passed in the year 1971.
A) Statements i, ii and iv are true
B) Statements i, iii and iv are true
C) Statements ii, iii and iv are true
d) Statements i, ii and iii are true

36. Which of the following is the correct response with respect to the Residential status of an individual as a Resident in India ?
A) Resides in India for a period of not less than 181 days in the relevant previous year
B) Resides in India for a minimum of 60 days in the relevant previous year and resided in India not less than 365 days in the immediately preceding four years
C) Both A) and B) together are required
D) Either of A) or B) is to be fulfilled

37. Which of the following is wrong with regard to the Income Tax Return 1 (Shahaj) ?
A) ITR 1 is applicable for persons having business income
B) ITR 1 can be filed if the total income does not exceed ` 50 lakhs
C) ITR 1 can be used if the agricultural income does not exceed ` 5,000
d) ITR 1 can be used if the individual does not have more than one house property

38. Which of the following statements are true with regard to the deductions under Chapter VI-A ?
i. deductions under Sec. 80 E deals with the interest on Education loan.
ii. Health Insurance premium up to ` 25,000 is allowed under Sec. 80 d.
iii. Sec. 80 G provides for the deduction of donation paid in cash up to 2,00,000.
A) Statements i and iii are true
B) Statements ii and iii are true
C) Statements i and ii are true
d) Statements i, ii and iii are true

39. Identify the wrong statement from the following.
A) Income Tax deducted by the employer from the salary of employee is called the TdS
B) Income Tax paid by the assessee after the assessment is called the Advance Tax
C) Income Tax deducted by the bank from the interest income of a customer is called the TCS
d) Self-Assessment Tax is paid by the assessee in addition to the TdS and TCS
Question Cancelled

40. Which of the following is incorrect with respect to the Long Term Capital Gain ?
A) lTCG on listed equity shares up to ` 1 lakh is exempted from tax
B) listed equity shares held for a period of more than 12 months are termed as long term capital assets
C) Income Tax on LTCG of listed equity shares were charged at 10%
d) Unlisted shares requires a holding period of more than 12 months for considering it as long term capital assets

41. Which Article of the Indian Constitution gives power to levy and make laws related to the Goods and Service Tax ?
A) Article 246
B) Article 246 A
C) Article 279
d) Article 279 A

42. Which of the following statements are true with regard to the GST ?
i. GST is a destination based consumption tax.
ii. Producing States will be more benefited by way of increased revenue.
iii. In India, we follow the dual GST model.
iv. Under the dual GST model, both the Central and State governments levy tax simultaneously.
A) Statements i, ii and iii are true
B) Statements ii, iii and iv are true
C) Statements i, iii and iv are true
d) Statements i, ii and iv are true

43. Identify the incorrect statement from the following.
i. IGST collected is fully entitled to the central government.
ii. CGST collected is fully available to the central government.
iii. IGST is levied on inter-state supply.
iv. CGST and SGST are levied on intra-state supply.
A) Statement i is incorrect
B) Statement ii is incorrect
C) Statement iii is incorrect
d) Statement iv is incorrect

44. Which of the following statement is false ?
A) Composite supply involves supply of naturally bundled products
B) distinct goods or service bundled together and offered at a single price is termed as mixed Supply
C) Health and Educational Services are Exempt Supply
d) Essential goods of regular consumption such as unpacked food grains, salt, fresh milk, etc. are taxed at 5% of GST

45. Which of the following is not a condition for claiming ITC ?
A) Recipient must have in possession of tax invoice or debit note issued by the registered supplier
B) must have paid the invoice amount to the supplier within 240 days
C) must have the actual receipt of the goods or services mentioned
d) Supplier must have paid the tax amount as shown in the invoice

46. Which of the following is not applicable to the composition scheme under GST ?
A) Composition scheme can be opted by a taxpayer if the annual turnover is below ` 1.5 Crore
B) Composition taxpayers pays nominal rate of GST from their profit margin
C) Composition taxpayer can collect GST from the customers at the specified slab rate
d) Composition taxpayers cannot avail the ITC
Question Cancelled

47. Identify the correct statements from the following.
i. GSTR 1 is used for declaring the outward supply.
ii. GSTR 2A/2B is an auto-populated statement indicating the inward supply and ITC.
iii. GSTR 3B is a summary return used to settle tax liability and make payment of tax.
iv. GSTR 9 is quarterly return filed by taxpayers.
A) Statements i, ii and iii are correct
B) Statements ii, iii and iv are correct
C) Statements i, iii and iv are correct
d) Statements i, ii and iv are correct

48. Identify the correct statements from the following.
i. Time of supply is relevant for determining the due date of tax payment.
ii. Place of supply is relevant for determining the type of GST payable (IGST or CGST and SGST).
iii. Value of supply is crucial for determining the amount of GST.
iv. Nature and type of supply is crucial for the determination of applicable tax rates.
A) Statements i, ii and iii are correct
B) Statements ii, iii and iv are correct
C) Statements i, iii and iv are correct
d) Statements i, ii, iii and iv are correct

49. Which of the following statements are true ?
i. GST Council advices the Government on the GST rates and thresholds.
ii. HSN Codes are used to classify Service and fix tax rates.
iii. E-Way bills are required for the movement of goods worth ` 50,000 or more.
iv. Every registered taxpayer will be granted a GSTIN.
A) Statements i, ii and iii are true
B) Statements i, iii and iv are true
C) Statements i, ii and iv are true
d) Statements ii, iii and iv are true

50. Which of the following is a false statement ?
A) GST provides seem-less flow of credit without cascading effect
B) GTA service is typical example of reverse charge mechanism
C) Casual taxable persons needs to make advance payment of GST
d) Registered E-Commerce Operators are required to collect TdS

51. Identify the difference between Auditing and Accounting.
a. Accounting is done with inductive reasoning and Auditing is done with deductive reasoning.
b. Accounting work is done continuously throughout the year whereas auditing is normally done at the end of the year or periodically.
A) Only statement a is true
B) Only statement b is true
C) Both statements a and b are true
d) Neither statement a nor statement b is true

52. Which of the following statement/s is/are true relating to statutory audit ?
a. Statutory audit is an external audit.
b. Statutory audit may be a partial audit.
A) Only statement a is true
B) Only statement b is true
C) Both statements a and b are true
d) Neither statement a nor statement b is true

53. __________ is a continuous and systematic review of the accounting, financial and other operations of a concern by the staff specially appointed for the purpose.
A) Internal check
B) Internal control
C) Internal audit
d) None of the above

54. Identify the difference between Government Audit and Commercial Audit.
a. Government Audit is optional whereas Commercial Audit is compulsory.
b. There is a preliminary audit in case of Commercial Audit whereas no such audit in Government Audit.
A) Only statement a is true
B) Only statement b is true
C) Both statements a and b are true
d) Neither statement a nor statement b is true

55. __________ is an audit carried out after the preparation of financial statement.
A) Final Audit
B) Annual Audit
C) Periodical Audit
d) All of the above

56. _________ is a type of partial audit which is undertaken for only cash receipts and cash payment.
A) Cash Audit
B) Special Audit
C) Operational Audit
d) None of the above

57. Auditing Assurance Standards (AAS) 5 deals with
A) Evidence
B) documentation
C) Errors and Frauds
d) None of the above

58. __________ means the examination of the selected items in depth or in detail from the origin of the transactions to fair conclusions.
A) Routine Checking
B) Surprise Checking
C) Auditing in depth
d) None of the above

59. Which of the following can become a Voucher ?
A) minutes of the meeting
B) A Contract or Agreement
C) Wage Sheet
d) All of the above

60. Identify the true statement/s.
a. Comply with Auditing standards is the duty of the Auditor.
b. To get technical and legal advice is also the duty of the Auditor.
A) Only statement a is true
B) Only statement b is true
C) Both statements a and b are true
d) Neither statement a nor statement b is true

61. Which of the following transactions will increase the Bank balance in a Cash Book ?
Transaction A : Salary paid by cheque.
Transaction B : Received cheque deposited and dishonored.
A) Transaction A is true
B) Transaction B is true
C) Transaction A and Transaction B are true
d) None of the above

62. Pick out the most accurate statement from the following.
A) Cash balance may have either debit or credit balance
B) Bank balance may have either debit or credit balance
C) Both A) and B)
d) None of these

63. Sales ledger is maintained for
a. Writing sales account.
b. Preparing return outward account.
A) a is true
B) b is true
C) a and b are true
d) none of the above

64. Identify the hierarchy of items in Balance Sheet in the order of liquidity.
1. debtors
2. Bill receivable
3. Prepaid expenses
4. Stock
A) 1234
B) 4231
C) 1243
d) None of these

65. Identify the true impact in relating to ‘Adjusted Purchase’.
Impact A : No opening stock and closing stock in Trial Balance.
Impact B : Closing stock appears in Balance Sheet and in Trial Balance.
A) Impact A is true
B) Impact B is true
C) Impact A and Impact B are true
d) None of the above

66. Which of the following items will create at 100% level accuracy ?
A) Reserve
B) Provision
C) Both A) and B)
d) None of the above
Question Cancelled

67. Inferred Goodwill means
A) Fake Goodwill
B) Hidden Goodwill
C) Both A) and B)
d) None of these

68. If the Goodwill is raised in the books of the firm and later written off during admission, the net goodwill credited to old partners capital account is equal to
A) Sacrificing ratio
B) Gaining ratio
C) Both A) and B)
d) None of these

69. distinguish between revaluation account and realization account.
A) First is prepared at the time of admission and later is prepared at the time of dissolution
B) First is prepared at the time of retirement and later is prepared at the time of insolvency of partner
C) Both A) and B)
d) None of the above

70. Sacrificing ratio and old ratio will be equal when
A) New partner will get a share of total profit
B) New partner will get a portion of profit from different partner’s profit
C) Both A) and B)
d) None of the above

71. Identify odd one/which of the following is not correct with regard to principles of business ethics ?
A) Standardisation
B) Workable
C) driven from the top levels
d) driven from the lower levels

72. The word ‘ethics’ has originated from
A) latin ‘Ethicus’
B) Greek ‘Ethicos’
C) Word ‘Ethos’
d) All of these

73. Consumer rights in India not include
A) Safety
B) Security
C) Informed
d) Redressal

74. Arguments for social responsibility includes
A) Changing social values
B) lack of public support
C) High cost
D) Difficult to measure

75. Principles of Corporate Governance includes
a. Internal control
b. Rights of shareholders
c. Compensation
d. Protection of interest of stakeholders
Choose most appropriate answer from the given below.
A) a and b only
B) b and c only
C) b and d only
d) c and d only

76. Which of the following is not correct with regard to consumer exploitation ?
A) Substandard quality
B) Promoting consumer awareness
C) Supply of adulterated goods
d) Fixing a higher price

77. Economic ill effects of advertising includes
A) Creation of unnecessary competitive war
B) Discrimination among people leading to conflicts
C) Increase cost of production which ultimately affects price
d) All of these

78. Key areas of CSR cannot be identified through
A) National issues
B) Social scanning
C) Corruptions
d) Social audit

79. Which of the following are correct with regard to arguments against social responsibility ?
a. High cost
b. Welfare state
c. Against profit maximisation principle
d. Long run benefits
e. Difficult to measure
Choose the correct answers from the options given below.
A) a, b and c only
B) b, c and d only
C) c, d and e only
d) a, c and e only

80. Corporate Governance theories does not includes
A) Stewardship theory
B) Need-hierarchy theory
C) Agency theory
d) Stakeholders theory

81. Oral communication takes place through
A) e-mail
B) voice-mail
C) Fax
d) Facsimile

82. Barriers of listening includes
A) Rapid thoughts
B) Egotism
C) Cultural difference
d) All of these

83. ___________ is the official record of business transacted, discussions held and decisions taken.
A) Agenda
B) Notice
C) minutes
d) Resolutions

84. Choose odd one with regard to starting a speech.
A) Raising a question
B) Opening with a striking quotation
C) Building up a climax
d) Highlighting shocking facts

85. most desirable type of listening is
A) Passive listening
B) Selective listening
C) Active listening
d) None of these

86. ______________ is a proposition or proposal put before a meeting for discussion and decisions.
A) Agenda
B) minutes
C) Quorum
d) motion

87. Stages of group development does not include
A) Forming
B) Storming
C) Norming
d) Commanding

88. Given below are two statements, one is labelled as Assertion (A) and the other is labelled as Reason (R).
Assertion (A) : Essential for effective communication be clear about your target audience.
reason (r) : The intended message can not bring about the desired result unless it reaches the right person or group of persons.
In the light of the above statements, choose the correct answer from the options given below.
A) Both (A) and (R) are true, but (R) is not the correct explanation of (A)
B) Both (A) and (R) are true and (R) is the correct explanation of (A)
C) (A) is true, but (R) is false
d) (A) is false, but (R) is true

89. match list – I with list – II (Personality Traits).
List – I (Primary Traits)
a. Tough minded
b. Group dependent
c. Trusting
d. Practical
e. Conservative
List – II (opposite Traits)
i. Imaginative
ii. Experimenting
iii. Sensitive
iv. Suspicious
v. Self sufficient
Choose correct answer from the options given below.
A) a – iii, b – v, c – iv, d – i, e – ii
B) a – i, b – iii, c – v, d – ii, e – iv
C) a – v, b – i, c – iii, d – iv, e – ii
d) a – ii, b – iv, c – i, d – iii, e – v

90. match list – I with list – II.
List – I (Theory)
a. Contingency model
b. Path-goal leadership theory
c. Trait theory
d. managerial grid
List – II (Inventor)
i. Blake and mouton
ii. Robert House
iii. Fred E. Fiedler
iv. Kelly
Choose correct answer from the options given below.
A) a – iii, b – ii, c – iv, d – i
B) a – ii, b – iii, c – i, d – iv
C) a – iv, b – i, c – ii, d – iii
d) a – i, b – iv, c – iii, d – ii

91. Enterprise Resource Planning supports ____________ currency value.
A) multiple
B) Three
C) Two
d) One

92. Which among the following is at the heart of any ERP system ?
A) Suppliers
B) Employees
C) data
d) database

93. Statement – 1 : An ERP system centralises an organization’s data.
Statement – 2 : The processes ERP system enforces are the processes the organization adopts.
A) Statement 1 is correct and statement 2 is incorrect
B) Statement 1 is incorrect and statement 2 is correct
C) Both statements are correct
d) Both statements are incorrect

94. Assertion (A) : Supply Chain Management (SCM) systems optimize the flow of goods and services from suppliers to customers.
reason (r) : SCm systems help organizations to manage inventory levels, improve coordination with suppliers, and reduce lead times.
A) Both (A) and (R) are true, but (R) is not the correct explanation of (A)
B) Both (A) and (R) are true and (R) is the correct explanation of (A)
C) (A) is true, but (R) is false
d) (A) is false, but (R) is true

95. ___________ is an approach both historically preceded and inspired BPm.
A) Supply Chain management
B) Total Quality management
C) Enterprise Resource Planning
d) Customer Relationship management

96. Which among the following is not a critical enabler for a high-performance business process; without them, a process will be unable to operate on a sustained basis ?
A) Process metrics
B) Process Infrastructure
C) Process Owner
d) Process Hour

97. Which among the following statements is/are incorrect about SCM ?
i. A supply chain is a network of supplier, manufacturing, assembly, distribution and logistics facilities.
ii. SCm is utilized to facilitate the coordination with outside business entities, or in the scope of extended enterprise.
iii. The cost of participation in a public business to business exchange SCm is significantly higher than implementing our own SCM system.
iv. Suppliers, manufacturers and distributors are generally involved in a supply chain.
A) Only i and ii
B) Only iv
C) Only iii
d) All of the above

98. Which is the correct order of processes in implementation phase of Business Process Automation ?
i. Blue printing
ii. Realisation
iii. Project preparation
iv. Go live and support
v. Final preparation
A) iii, i, ii, iv, v
B) i, iii, v, iv, ii
C) iii, i, ii, v, iv
d) ii, iii, i, v, iv

99. ___________ allows for the creation of a consolidated view of the customer from multiple customer data stores.
A) Customer data Information
B) Customer data Integration
C) Customer Data Inquiry
D) Customer Data Infinity

100. Among the following which is not a key aspect of Core Banking System ?
i. Information flow
ii. Customer centric
iii. Regulatory compliance
iv. Resource optimization
v. Relationship management
A) Only iv and v
B) Only v
C) Only iv
d) None of the above