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Common University Entrance Test (UG)

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5 Views

Question : Quaternary activities are characterized by:

Option 1: Manual labor  

 

Option 2: Knowledge-based services  
 

Option 3: Primary production  

 

Option 4: Large-scale manufacturing  

Team Careers360 26th Jan, 2024

Correct Answer: Knowledge-based services  
 


Solution : Quaternary activities are characterized by knowledge-based services such as information technology, research and development, and financial services.

 

14 Views

Question : Decrease in Cash Credit. would result in inflow/outflow/no flow of Cash and Cash Equivalents:

Option 1: Inflow of cash

Option 2: Outflow of cash

Option 3: Neither inflow Nor outflow

Option 4: Cash and cash equivalent

Team Careers360 27th Jan, 2024

Correct Answer: Outflow of cash


Solution : Answer = Outflow of cash

A decrease in cash credit signifies a reduction in the available borrowing limit. If a business uses this credit line to withdraw funds, it leads to a decrease in their cash and cash equivalents. Cash credit is treated as a short-term borrowing facility offered by banks.
Hence, the correct option is 2.

6 Views

Question : Case Study:

Luxe Watches is known for its high-quality watches that have a strong reputation among customers. This reputation contributes to customer trust and loyalty. What does this case exemplify?

 

Option 1: Packaging

Option 2: Branding

Option 3: Promotion

Option 4: Pricing

Team Careers360 27th Jan, 2024

Correct Answer: Branding


Solution : The correct answer is (b) Branding.

The strong reputation of Luxe Watches among customers, contributing to trust and loyalty, is a result of effective branding. Branding is the process of creating a distinct and positive identity for a product or service in the minds of consumers. Luxe Watches has established a reputation for high-quality watches, which has become synonymous with their brand. This positive brand image contributes to customer trust and loyalty, highlighting the importance of branding in this scenario.

 

6 Views

Question : What is the focus of target area planning?

 

Option 1: Developing urban centers

Option 2: Addressing regional imbalances

Option 3: Promoting tourism

Option 4: Encouraging agricultural exports

Team Careers360 26th Jan, 2024

Correct Answer: Addressing regional imbalances


Solution : The focus of target area planning is on addressing regional imbalances by concentrating development efforts on specific areas to promote balanced growth and reduce disparities.

6 Views

Question : Which of the following is the element of communication process?
 

Option 1: Encoding
 

Option 2: Media
 

Option 3: Both A and B
 

Option 4: Neither A nor B
 

Team Careers360 26th Jan, 2024

Correct Answer: Both A and B
 


Solution : Encoding is the process of converting message into communication symbol.
Media is the path, the channel or medium through which encoded message is transmitted to the receiver.
Hence Option C is correct.

Question : Statement 1: Capital market instruments have maturities ranging from a few days to one year.

Statement 2: Capital market instruments are used for long-term financing.

Option 1: Statement 1 is true, and statement 2 is true.
 

Option 2: Statement 1 is true, but statement 2 is false.
 

Option 3: Statement 1 is false, and statement 2 is true.

 

Option 4: Statement 1 is false, and statement 2 is false.

Team Careers360 27th Jan, 2024

Correct Answer: Statement 1 is true, but statement 2 is false.
 


Solution : The correct answer is (b) Statement 1 is true, but statement 2 is false.

Statement 1 is true. Capital market instruments can indeed have a range of maturities, including short-term maturities (a few days) up to longer-term maturities (up to one year). Examples of short-term capital market instruments include Treasury bills and commercial paper.

Statement 2 is false. Capital market instruments are typically used for medium to long-term financing rather than exclusively long-term. Long-term financing typically involves maturities exceeding one year, and while capital market instruments can certainly have maturities beyond one year, they can also have shorter maturities.

10 Views

Question : The concept of sustainable development emphasizes:

Option 1: Economic growth at any cost
  

Option 2: Environmental protection at any cost
   

Option 3: Balancing economic growth and environmental protection

 

Option 4: Reducing economic growth for the sake of environmental protection

Team Careers360 27th Jan, 2024

Correct Answer: Balancing economic growth and environmental protection

 


Solution : The correct answer is (c) balancing economic growth and environmental protection.

Sustainable development is a holistic approach that seeks to meet the needs of the present generation without compromising the ability of future generations to meet their own needs. It recognizes that economic development, social progress, and environmental protection are interdependent and should be pursued in a balanced and integrated manner.

Sustainable development promotes the efficient use of resources, the adoption of clean technologies, and the preservation of ecosystems to ensure long-term environmental sustainability. It recognizes the importance of addressing climate change, biodiversity loss, pollution, and other environmental challenges as integral parts of development strategies.

13 Views

Question :  What does the term "currency appreciation" refer to?

Option 1: Increase in the value of domestic currency
 

 

Option 2: Increase in the value of foreign currency
 

Option 3: Decrease in the value of domestic currency

 

Option 4: Decrease in the value of foreign currency

Team Careers360 26th Jan, 2024

Correct Answer: Increase in the value of domestic currency
 

 


Solution : The correct answer is a) Increase in the value of domestic currency

The term "currency appreciation" refers to an increase in the value of a domestic currency relative to other currencies. It means that one unit of the domestic currency can purchase a greater amount of foreign currency or goods and services denominated in foreign currencies.

Currency appreciation typically occurs when there is an increase in demand for the domestic currency in the foreign exchange market. Factors such as strong economic performance, high interest rates, positive investor sentiment, or increased demand for a country's exports can contribute to currency appreciation.

Currency appreciation has various implications. It can make imports cheaper, potentially leading to lower inflation and increased purchasing power for consumers. However, it may also make exports more expensive, affecting the competitiveness of a country's goods and services in international markets.

 

8 Views

Question :

At the time of the reissue of all forfeited shares

Option 1:

General Reserve is debited with the credit balance left in the Forfeited Shares Account

 

Option 2: General Reserve is credited with the credit balance left in the Forfeited Shares Account

Option 3:

Capital Reserve is debited with the credit balance left in the Forfeited Shares Account

 

Option 4:

Capital Reserve is credited with the credit balance left in the Forfeited Shares Account

Team Careers360 26th Jan, 2024

Correct Answer:

Capital Reserve is credited with the credit balance left in the Forfeited Shares Account


Solution :

Answer = Capital Reserve is credited with the credit balance left in the Forfeited Shares Account

Capital Reserve is credited with the credit balance left in the Forfeited Shares Account.
Entry will be:

Share Forfeiture A/c Dr.
       To Capital Reserve A/c
Hence, the correct answer is 4.

2 Views

Question : Purchase Rs.80,000; Opening Inventory Rs. 10,000 and Closing Inventory Rs.30,000. which of the following transactions will decrease ----

Option 1: Goods purchased for Rs.20,000

Option 2: Purchase returns Rs.5,000

Option 3: Goods costing Rs. 10,000 withdrawn for personal use

Option 4: Goods costing Rs.5,000 distributed as free sample

Team Careers360 27th Jan, 2024

Correct Answer: Goods purchased for Rs.20,000


Solution : Answer = Goods purchased for Rs.20,000

I. T. Ratio $=\frac{\text {Cost of Goods sold }}{\text { Average Inventory }}$

= 60,000/20,000 = 3 times 

Cost of Goods 

Sold = 10,000 + 80,000 - 30,000

        = 90,000 - 30,000 = 60000

Average Inventory = 10,000 + 30,000 / 2

                              = 40,000 / 2

                               = 20,000

If purchased goods then the Cost of Revenue from the operation will Remain unchanged Because of the increase in Purchases and increase in closing Inventory.
Hence, the correct option is 1.

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