Common University Entrance Test (UG)
Question : Calculate M1 from the following- Currency with public- 82000 Demand deposits with banks- 34000 Other deposits with RBI- 4563 Total deposits with Post office- 2240 Time deposits with banks- 2,45,000 Post office savings bank deposits- 2683
Option 1: 120562
Option 2: 120561
Option 3: 120564
Option 4: None of the above.
Correct Answer: None of the above.
Solution : M1= Currency with the public + Demand deposits + Other deposits with RBI- M1= 82000+34000+4563 M1= 120563 Hence Option D is correct.
Question : Which of the following statements is false?
Option 1: Total Assets = Fixed Assets + Non-current Investments + Current Assets
Option 2: Long-term Borrowings or Debt = Total Borrowing - Short-term Borrowings
Option 3: Total Assets = Shareholders Funds + Long term Borrowings + Short term Borrowings + Other Current liabilities
Solution : Answer = none of the above Shareholder fund + Non-Current liabilities + Current liabilities = Non-Current Assets + Current Assets. Hence, the correct option is 4.
Question : Unrecorded liabilities, when paid on the dissolution of a firm, are credited to
Option 1: partner's capital account
Option 2: liabilities account
Option 3: cash account
Option 4: Realization account
Correct Answer: cash account
Solution : Answer = cash account. In case of unrecorded liabilities, either the same will be paid off or will be taken over by any partner. The accounting treatment in both cases will be as follows:-
Realisation a/c Dr To cash account/partner's capital account Hence, the correct option is 3.
Question : Which factor has contributed most to the growth of urban populations in recent decades?
Option 1: Agricultural advancements
Option 2: Industrialization
Option 3: Decreased birth rates
Option 4: Increased life expectancy
Correct Answer: Industrialization
Solution : Industrialization has contributed most to the growth of urban populations in recent decades, as people move to cities for job opportunities and better living conditions.
Question : What is a non-tax revenue?
Option 1: Revenue generated by taxes
Option 2: Revenue generated by fines, fees, and licenses
Option 3: Revenue generated by international trade
Option 4: Revenue generated by donations
Correct Answer: Revenue generated by fines, fees, and licenses
Solution : The correct answer is (b). Revenue generated by fines, fees, and licenses.
Non-tax revenue refers to the income or revenue generated by a government that does not come from taxes. Instead, it is generated through various other means such as fines, fees, licenses, permits, penalties, royalties, and other non-tax sources. These revenues are typically collected by the government as a result of specific transactions or activities and are considered a source of income for the government's budget.
Examples of non-tax revenue include fines for traffic violations, fees for government services like passport applications or vehicle registrations, charges for licenses or permits for businesses or professionals, revenue from state-owned enterprises, earnings from state-run lotteries or gambling activities, royalties from natural resource extraction, and income from public services like parking fees or tolls.
Question : Read the following statements and choose the correct question tags.
I do not now know in this man,………..?
Option 1: did I
Option 2: aren’t I
Option 3: do I
Option 4: don't I
Correct Answer: don't I
Solution :
The correct answer is option 4.
I do not know in this man, don't I?
Explanation:
We need to use positive question tags if the statement is negative.
A subject pronoun comes after an auxiliary verb.
Here the subject pronoun is "I".
Hence the correct sentence is
Question : What does a high population density indicate?
Option 1: A large land area
Option 2: A high number of people per unit area
Option 3: A low birth rate
Option 4: A sparse population
Correct Answer: A high number of people per unit area
Solution : A high population density indicates a high number of people per unit area, which means the area is densely populated.
Question : Which of the following is an example of an intermediate good?
Option 1: Bread purchased by a consumer
Option 2: Steel used in the construction of a building
Option 3: A laptop sold to a student
Option 4: A car purchased by a family
Correct Answer: Steel used in the construction of a building
Solution : The correct answer is (b) Steel used in the construction of a building.
An intermediate good is a product that is used as an input or raw material in the production of another good or service. It is not intended for final consumption or directly sold to end consumers.
Steel used in the construction of a building is an example of an intermediate good. Steel is a material that is used in the construction industry as a primary input for building structures. It is not the final product itself but is used in the production process to create the final building structure.
Question : Statement 1: SEBI regulates the Indian stock market.
Statement 2: SEBI stands for Securities and Exchanges of Banking Institutions.
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.
Correct Answer: Statement 1 is true, but statement 2 is false.
Solution : The answer is (b) Statement 1 is true, but statement 2 is false.
Statement 1 is true. SEBI, or the Securities and Exchange Board of India, is the regulatory body for the Indian securities market. It was established in 1992 to protect the interests of investors and to promote the development of the securities market.
Statement 2 is false. SEBI does not stand for Securities and Exchanges of Banking Institutions.
SEBI plays an important role in the Indian economy by helping to ensure that the securities market is fair and efficient. This benefits all stakeholders, including investors, issuers, and market intermediaries.
Question : At the time of the dissolution of the partnership firm. The amount of the Employees Provident Fund shown on the liabilities side of the balance sheet is transferred to
Option 1: Cash account
Option 2: partner's capital account
Option 3: realization account
Option 4: None of the above
Correct Answer: realization account
Solution : Answer = realization account. In case of dissolution of a partnership firm, Firstly EPF transferred the credit side of the realisation account and then paid.[treated as outsiders liabilities] (i) Transferred entry E.P fund a/c....Dr To Realisation a/c (ii) Paid entry Realisation a/c.....Dr To Bank a/c Hence, the correct option is 3.
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