Common University Entrance Test (UG)
Question : Current Assets Rs.5,00,000; Current Liabilities Rs.2,50,000 and Inventory is Rs.60,000. What will be the Liquid Ratio?
Option 1: 2.02:1
Option 2: 2:1
Option 3: 3:1
Option 4: None of the above
Correct Answer: 2:1
Solution : Liquid Asset = Current asset excluding inventory = Rs.5,00,000. Current Liabilities = Rs.2,50,000. Liquid Ratio= Liquid Asset / Current Liabilities = 5,00,000/2,50,000 = 2:1 Hence option 2 is the correct answer.
Question : Complete the sentence using the correct question tag.
You're addicted to junk food, __________________?
Option 1: aren't you
Option 2: wasn't you?
Option 3: hadn't you
Option 4: weren't you?
Correct Answer: aren't you
Solution : The correct answer is option 1.
You're addicted to junk food, Aren't you?
Explanation:
The appropriate subject and the statement's auxiliary or modal verb combine to form question tags.
A negative question mark is placed after a positive statement.
Question : Which factor contributed to the rise of nationalist movements in the Balkans after the breakup of Yugoslavia?
Option 1: Economic prosperity
Option 2: Ethnic and religious tensions
Option 3: Strong central governance
Option 4: External military intervention
Correct Answer: Ethnic and religious tensions
Solution : Correct Option: Option 2 Explanation: Ethnic and religious tensions contributed to the rise of nationalist movements in the Balkans after the breakup of Yugoslavia, as different groups sought to assert their identities and political autonomy.
Question : Calculate ‘Depreciation on Capital Asset’ from the following data:
The capital value of the asset = 1000
Estimated life of the asset = 20 years
Scrap value = Nil
Option 1: 49
Option 2: 50
Option 3: 47
Option 4: 51
Correct Answer: 50
Solution : The correct answer is (b) 50
To calculate Depreciation on a Capital Asset using the straight-line method, we can use the following formula:
Depreciation = (Capital Value of the Asset - Scrap Value) / Estimated Life of the Asset
Capital Value of the Asset = 1000
Estimated Life of the Asset = 20 years
Scrap Value = Nil
Depreciation = (1000 - 0) / 20
Depreciation = 50
Therefore, the value of Depreciation on the Capital Asset is 50.
Question : Assertion: Credit rating agencies assess the creditworthiness of issuers.
Reason: Credit rating agencies issue government bonds.
Option 1: Both assertion and reason are true, and the reason is the correct explanation of the assertion.
Option 2: Both assertion and reason are true, but the reason is not the correct explanation of the assertion.
Option 3: Assertion is true, but the reason is false.
Option 4: Assertion is false, but the reason is true.
Correct Answer: Assertion is true, but the reason is false.
Solution : The correct answer is (c) Assertion is true, but the reason is false.
The assertion is true. Credit rating agencies do assess the creditworthiness of issuers, which includes evaluating their ability to meet debt obligations and repay loans.
The reason is false. Credit rating agencies do not issue government bonds or any other financial securities. Their role is to evaluate and provide ratings for these bonds based on their assessment of the issuer's creditworthiness. They do not issue the bonds themselves. Therefore, the reason does not correctly explain the assertion.
Question : In the foreign exchange market, what does the term "liquidity" refer to?
Option 1: The ease of converting a currency into another currency
Option 2: The profitability of currency trading
Option 3: The stability of exchange rates
Option 4: The demand for a currency
Correct Answer: The ease of converting a currency into another currency
Solution : The correct answer is (a) The ease of converting a currency into another currency.
In the foreign exchange market, liquidity refers to the ability to buy or sell a currency quickly and easily without causing significant price movements. It is a measure of how easily a currency can be converted into cash or other currencies. Currencies with high liquidity are actively traded and have a large number of market participants, which means there is a higher volume of transactions and a narrower bid-ask spread.
Liquidity is an essential aspect of the foreign exchange market because it ensures efficient price discovery and smooth execution of trades. High liquidity enables market participants to enter and exit positions without significant slippage or impact on the exchange rate. It also allows for tighter spreads, reducing transaction costs for traders.
Factors that can influence the liquidity of a currency include the size and depth of the market, the number of participants, trading volume, and the presence of market makers. Major currencies like the US dollar, euro, Japanese yen, British pound, and Swiss franc typically have high liquidity due to their wide acceptance and extensive trading activity.
Question : Assertion: Initial Public Offering (IPO) is a method of raising short-term funds from the capital market.
Reason: IPO involves issuing new securities to the existing shareholders.
The assertion is true. An Initial Public Offering (IPO) is a method of raising funds from the capital market.
The reason is false. IPO involves a company issuing its shares to the public for the first time, not issuing new securities to existing shareholders. It is about offering shares to the general public, not specifically to existing shareholders.
Question : Salaries paid Rs 4,500 and salaries debited to Income and Expenditure Account is Rs 5,000, where would the difference be transferred?
Option 1: assets side of closing Balance Sheet
Option 2: assets side of opening Balance Sheet
Option 3: Liabilities side of closing Balance Sheet
Option 4: Liabilities side of opening Balance Sheet
Correct Answer: Liabilities side of closing Balance Sheet
Solution : Salaries debited to Income and Expenditure Account = Rs 5,000 (-) Salaries paid = (Rs 4,500) Amount to the closing Balance Sheet (Liabilities side)= Rs.500 Hence, the correct option is 3.
Question : What was one of the government's strategies to integrate refugees into Indian society after partition?
Option 1: Forced assimilation
Option 2: Repatriation to Pakistan
Option 3: Allocation of land and resources
Option 4: Isolation in camps
Correct Answer: Allocation of land and resources
Solution : One of the government's strategies to integrate refugees into Indian society after partition was the allocation of land and resources, helping them establish new lives and livelihoods.
Question : What is the function of data audit?
Option 1: to know as to who and what changes have been made in the original data
Option 2: to know as to who and what changes have been made in the changed data
Option 3: Both 1 and 2
Option 4: None of these
Correct Answer: to know as to who and what changes have been made in the original data
Solution : Data audit enables us to know who and what changes have been made in the original data. Hence, the correct option is 1.
The Question containing Inaapropriate or Abusive Words
Question lacks the basic details making it difficult to answer
Topic Tagged to the Question are not relevant to Question
Question drives traffic to external sites for promotional or commercial purposes
The Question is not relevant to User
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