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th
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 VIDYA SAGAR
CAREER INSTITUTE LIMITED
CPT Minor Test – 1 (Part – A)

Instruction: Maximum Marks: 100

1. Use HB Pencil to fill ovals for correct answer. Time : 2 Hours
2. Each question carry one mark. Date : 29.4.2017
3. Negative marking .25 marks for each wrong answer.
4. No negative marking for unattempted questions.

___________________________________________________
01. Financial statements are part of:
(a) Accounting (b) Book-keeping
(c) All of the above (d) None of the above

02. On January 1, Sohan paid rent of Rs. 5,000.This can be classified as:
(a) An event (b) A transaction
(c) A transaction as well as an event (d) Neither a transaction nor an event

03. The determination of expenses for an accounting period is based on the principle of
(a) Objectivity. (b) Materiality.
(c) Matching. (d) Periodicity.

04. The accounting equation is based on :

(a) Dual aspect (b) Business Entity
(c) Going concern (d) All of the above

05. Mohan purchased goods for Rs. 15,00,000 and sold 4/5th of the goods amounting Rs. 18,00,000 and
met expenses amounting Rs. 2,50,000 during the year, 2011. He counted net profit as Rs. 3,50,000.
Which of the accounting concept was followed by him?
(a) Entity (b) Periodicity
(c) Matching (d) Conservatism

06. A building was purchased for Rs. 4,00,000 on 1.04.2009. 31st March 2010, its net realizable value
was Rs. 5,00,000. The value of building to be shown in the books as on 31st March, 2010 will be
(a) Cost price
(b) Net realisable value
(c) Cost or Net realisable value whichever is less
(d) Cost or Net realisable value whichever is more

07. Smita places an order to Priya for supply of certain goods yet to be manufactured. On receipt of
order, Priya purchases raw materials ,employs workers, produces the goods and delivers them to
Smita. In this case, sale will be presumed to have been made at the time of
(a) Receipt of order. (b) Production of goods.
(c) Delivery of goods. (d) Purchase of raw material.

08. Purchase of machinery for cash:

(a) Decreases total assets (b) Increases total assets
(c) Remains total assets unchanged (d) Decreases total liabilities
09. The purpose of accounting standards is to :
(a) Harmonies accounting policies
(b) Eliminate the non comparability of financial statements
(c) Improve reliability of financial statements
(d) All of the above

10. M/s Omega Brothers, which was registered in the year 2000, has been following LIFO method for
valuation of shares. In the current year it changed its method from LIFO to FIFO Method in the year
2005. The auditor raised objection to this change in the method of valuation of investments.
The objection of the auditor is justified because
(a) Change in the method should be done only with the consent of the auditor
(b) Method can be changed only from FIFO to LIFO and not vice versa
(c) Change in the method should be done only if it is required by some statute and change would
result in appropriate presentation of financial statement
(d) Method cannot be changed under any circumstances.

11. All of the following are valuation principles except

(a) Historical cost (b) Present value
(c) Future value (d) Realizable value

12. If two or more transactions of the same nature are journalised together having either the debit or
the credit account common is known as
(a) Compound journal entry. (b) Separate journal entry.
(c) Posting. (d) None of the above.

13. Goods worth Rs. 1000 taken by the proprietor for personal use should be credited to
(a) Sales A/c (b) Purchase A/c
(c) Expenses A/c (d) Proprietor's personal A/c

14. Discount is allowed by Arun to Varun. Which of the following should be the course of action in the
books of Arun?
(a) Credit Varun A/c and Debit Discount Allowed A/c
(b) Debit Varun A/c and Credit Discount Received A/c
(c) Credit Arun A/c and Debit Discount Allowed A/c
(d) Debit Arun A/c and Credit Discount Received a/c

15. Patents Accounts are:

(a) Secured Loan Account (b) Nominal Account
(c) Real Account (d) Debtors Account

16. Stock worth Rs. 20,000 (cost price Rs.15,000) taken by Naresh who is a clerk in the office. The same
is to be deducted from his salary in the subsequent month. Journal entry will be
(a) Dr. Salary A/c Rs.15,000 and Cr. Purchases A/c Rs. 15,000
(b) Dr. Naresh Rs.15,000 and Cr. Purchases A/c Rs. 15,000
(c) Dr. Salary A/c Rs.20,000 and Cr. Purchases A/c Rs. 20,000
(d) None of the above

17. The miscellaneous expenses account is likely to have :

(a) Only debit entries
(b) Only credit entries
(c) Both of the above
(d) Initially only debit entries and subsequently credit entries
18. When adjusted purchase is shown on the debit column of the trial balance then
(a) Both opening stock and closing stock do not appear in the trial balance
(b) Closing stock is shown in the trial balance and not the opening stock
(c) Opening stock is shown in the trial balance and not the closing stock
(d) Both opening and closing stock appear in the trial balance

19. The accountant of the firm M/s ABC is unable to tally the following trial balance.
S. No.Account heads Debit (Rs.) Credit (Rs.)
1 Sales 12,500
2 Purchases 10,000
3 Miscellaneous expenses 2,500
Total 10,000 15,000
The above difference in trial balance is due to
(a) wrong placing of sales account
(b) Incorrect totalling.
(c) wrong placing of miscellaneous expenses account
(d) Wrong placing of all accounts.

20. Which of the following is not a subsidiary book?

(a) Sales Book (b) Purchase Book
(c) Cash Book (d) B/R Book

21. Following are the sales return of Jindal & Co. a saree dealer
Date Credit Note
05.01.2006 201 Goyal & Co. Rampur returned 2 Polyster sarees @ 125
10.01.2006 202 Accepted return of goods (which were sold for cash)
from Garf & Co. Bhiwani. 2 Kota Sarees @ Rs. 50
17.01.2006 203 Mittal & Co. Hissar returned 2 silk sarees @ Rs. 325
31.01.2006 Mohan returned one old type writer @ Rs. 500
Total of sales return book will be
(a) Rs. 900 (b) Rs. 800
(c) Rs. 1000 (d) None of the three

22. A cheque of Rs.35,000 received by M/s Nandini was endorsed to M/s Chandini on account of full
settlement of Rs.35,500 on 1st October 2009. Chandini deposited the same into the bank on 4th
October 2009. In the books of M/s Chandini, the amount to be debited on 1st October 2009 will be

(a) Cash account Rs.35,000 and Discount account Rs.500.

(b) Bank account Rs.35,000 and Discount account Rs.500.
(c) Cash account Rs.35,500.
(d) Bank account Rs.35,500.

23. Medium term loan obtained from bank for augmenting working capital is:
(a) Revenue Expenditure (b) Capital Expenditure
(c) Revenue Receipt (d) Capital Receipt

24. Rectification entry are first entered in:

(a) In Ledger (b) In Subcidiray Books
(c) In Journal proper (d) In Trail balance
25. Depreciation starts on a machine from the date:
(a) It is purchased (b) It is Ready for put to use
(c) It is installed (d) Any of above

26. Assertion : Damages paid on account of breach of contract to supply certain goods is a capital
expenditure.
Reasoning : Such damages are incurred in the ordinary course of business :
(a) Both the statements are correct and second is a correct explanation of the first
(b) Both the statements are correct but second is not a correct explanation of the first
(c) First statement is correct but second is not
(d) First statement is not correct but second is correct

27. Income tax demand, disputed by a company is____________

(a) Contingent Liability (b) Current Liability
(c) Long term Liability (d) None of these

28. Wages paid for the erection of a machine debited to Wages A/c is an example of :
(a) Error of Principle (b) Clerical Error
(c) Error of Omission (d) Error of commission

29. An amount of Rs.6,000 due from Anshul , which had been written off as a bad debt in a previous
year, was unexpectedly recovered, and had been posted to the personal account of Anshul. The
rectification entry will be
(a) Anshul'S A/c Dr. Rs.6,000
To Suspense A/c Rs.6,000.
(b) Suspense A/c Dr. Rs.6,000
To Bad debts recovered A/c Rs.6,000.
(c) No rectification entry required.
(d) Anshul's A/c Dr. Rs.6,000
To Bad debts recovered A/c Rs.6,000.

30. Sales of Rs. 1,540 to Mr. X was posted to his account as Rs. 1,450. To rectify the error, Rs. 90 will be
______ to X's Account :
(a) Debited (b) Credited
(c) Ignored (d) Either (a) or (b)

31. If a purchase return of Rs. 1,000 has been wrongly posted to the debit of the sales return account,
but has been correctly entered in the suppliers account then the total of the
(a) The credit side of the trial balance will be Rs. 2000 more than the debit side
(b) The debit side of the trial balance will be Rs. 2000 more than the credit side
(c) Trial balance would show the credit side to be Rs. 1000 more than the debit
(d) Trial balance would show the debit side to be Rs. 1000 more than the credit

32. The cash book showed an overdraft of Rs. 1,500, but the pass book made up to the same date
showed that cheques of Rs. 100, Rs. 50 and Rs. 125 respectively had not been presented for
payments; and the cheque of Rs.400 paid into account had not been cleared. The balance as per the
pass book will be
(a) Rs. 1,100. (b) Rs. 2,175.
(c) Rs. 1,625. (d) Rs. 1,375.
33. When balance as per cash book (debit balance) as on 31st March is the starting point, what will be
the effect while preparing bank reconciliation statement when out of the cheques amounting to Rs.
5,000 deposited, cheques aggregating Rs. 1,500 were credited in March and cheques aggregating Rs.
2,000 credited in April and the rest have not been collected?

(a) Subtract Rs. 2,000. (b) Add Rs 2,000.

(c) Subtract Rs.3,500. (d) Add Rs. 3,500.

34. When balance as per Cash Book is the starting point, uncollected cheques are:
(a) Added in the bank reconciliation statement
(b) Subtracted in the bank reconciliation statement
(c) Not required to be adjusted in the bank reconciliation statement
(d) Neither of the above

35. Rs.

Balance as per adjusted cash book 274

(i) Cheques not yet presented 730
(ii) Cheques deposited not yet recorded by bank 477
Balance as per Pass Book will be
(a) Rs. 527 (b) Rs. 525
(c) Rs. 500 (d) None of the three.

36. The number of production or similar units expected to be obtained from the use of an asset by an
enterprise is called as _________:
(a) Unit life (b) Useful life
(c) Production life (d) Expected life

37. Provision for Depreciations A/c

To Fixed Assets 5000 |
Entry in above A/c Shows
(a) Provision for depreciation made for Rs. 5000
(b) Fixed assets sold for Rs. 5000
(c) Fixed assets sold having Rs. 5000 as provision for depreciation A/c
(d) Fixed asset revalued by Rs. 5000

38. Amit Ltd. purchased a machine on 01.01.2008 for Rs. 1,20,000. Installation expenses were Rs.
10,000. Residual value after 5 years. On 01.07.2008, expenses for repairs were incurred to the
extent of Rs. 2,000. Depreciation is provided @ 10% p.a. under written down value method.
depreciation for the 4th year =....
(a) Rs. 25,000 (b) Rs. 13,000
(c) Rs. 10,530 (d) Rs. 9,477

39. Depreciable amount of the machinery is Rs.11,00,000. The machine is expected to produce 30 lakhs
units in its 10 year life and expected distribution of production units is as follows:
1-3 year 5 lacs units each year
4-6 year 3 lacs units each year
7-10 year 1.5 lacs units each year
Annual depreciation for 1-3 year, using production units method will be______.
(a) Rs.1,10,000. (b) Rs.55,000.
(c) Rs. 65,000. (d) Rs. 1,83,333.
40. Cost of machine Rs.1,35,000. Residual value Rs. 5,000. Useful life 10 years the company charged
depreciation for the first 5 years on straight line method. Later on, it reviewed the useful life and
decided to take it as useful for another 8 years. Depreciation amount for 6th year will be.
(a) Rs. 8,125 (b) Rs. 8,000
(c) Rs. 8,200 (d) None of the three

41. If the rate of depreciation is same then the amount of depreciation under Straight Line Method vis-
a-vis written Down Value Method will be:
(a) Equal in all years.
(b) Equal in first year but higher in subsequent years.
(c) Equal in the first year but lower in subsequent years.
(d) Lower in the first year but equal in subsequent years.

42. The value of an asset after reducing depreciation from the historical cost is known as
(a) Fair value (b) Book value
(c) Market value (d) Net realizable value

43. Balance in Provision for Repair & Renewal account as on 31.03.2012 is Rs. 1,15,000.
Actual repair charges during 31.03.2013 Rs. 75,000
Actual repair charges during 31.03.2014 Rs. 32,000
Company charges an annual provision for Rs. 40,000 for Repair & Renewal account. Amount debited
to P & L a/c for the year ended 31.03.2014 will be:
(a) Rs. 32,000 (b) Rs. 8,000
(c) Rs. 72,000 (d) Rs. 40,000

44. X Limited has a machinery having Rs. 1,00,000 as WDV and Rs. 1,50,000 as cost on 31.03.2015. It
sold the machinery and transfer Rs. 10,000 to capital reserve. Sale Price of machinery is:
(a) Rs. 1,60,000 (b) Rs. 1,10,000
(c) Rs. 50,000 (d) Rs. 2,60,000

45. A Machine has estimated useful life of 10 years and having salvage value of Rs. 20,000. Estimated
production from machinery is 1000 units in first year and then production will grow each year by
10% in next 3 years. From 5 to 10 year. Production of 2000 unit each year is estimated. If 6 th year
depreciation is Rs. 20,000 what will be the cost of the machine:
(a) Rs. 1,66,410 (b) Rs. 1,86,410
(c) Rs. 1,80,000 (d) Rs. 1,90,000

46. In three column cash book which account are balanced:

(a) Bank and Discount Column (b) Bank and Cash Column
(c) Cash and Discount Column (d) All three Column

47. From the following information what will be the bank balance that will appear in trial balance:
i) Bank Balance as per cash book ` 3,25,000
ii) Cheque deposited but not credited ` 4,47,500
iii) Cheque issued but not yet presented ` 3,56,200
iv) Bank charges Debited by Bank but not
recorded in Cash Book ` 1,250
v) Dividend Directly collected by Bank ` 12,500
vi) Wrong credit given by Bank ` 15,000
(a) Rs. 3,25,000 (b) Rs. 3,51,250
(c) Rs. 3,36,250 (d) Rs. 2,59,950
48. Cost of the assets is Rs. 20,000, Depreciation will be charged on annuity method @5% PA interest.
Annuity table shows that to depreciate Rs. 1 by Annuity Method over 4 years @5% interest is
0.282012. Total interest to be debited during 4 years will be :
(a) Rs. 5640.24 (b) Rs. 1,000
(c) Rs. 2560.96 (d) Rs. 22,560.96

49. The following ledger posting in the debtors Account specify:

Debtors A/c
To Bill Receivables 500

(a) B/R Received from debtors worth Rs. 500

(b) Bill discounted from Bank which was received from Debtors Rs. 500
(c) B/R Received from Debtors Rs. 500 is dishonoured
(d) None of these

50. In which method of depreciation, depreciation is charged more than value of cost:
(a) Straight line method (b) Annuity Method
(c) Written down value method (d) Sum of digit year method

51. From the given information calculate correct balance of pass book by preparing bank reconciliation
statement on 31st December.
Debit Balance as per cash book ` 50,000
Bank credited customer’s Account wrongly by Rs 10 for bank charges ` 100
Cheque issued but entered in cash column of cash book ` 5000
Rs 9,000 Received from Ram by cheque after 10% discount but entered in cash book by Gross
amount
(a) ` 55,890 (b) ` 54,110
(c) ` 44,110 (d) ` 43,910

52. There was a difference of Rs. 5,000 in trial balance for the year ended 31st Dec .2014. Difference
was transferred in suspense Account in Debit side. On scrutiny it found on 1st Feb. 2015 that Ram’s
account was debited short by Rs 5000 Rectification entry will be:
(a) Ram A/c Dr 5,000
To P & L Adjustment A/c 5,000
(b) Ram A/c Dr 5,000
To suspense A/c 5,000

(c) Suspense A/c Dr 5,000

To P & L Adjustment A/c 5,000

(d) P&L Adjustment A/c Dr 5,000

To suspense A/c 5,000

53. Tax deducted at source (TDS) by Parle Company from the salary of employees it is.
(a) Income (b) Revenue expenditure
(c) Asset (d) Liability

54. Nature of bank fixed deposit account is

(a) Personal (b) Real
(c) Nominal (d) None of above
55. Wages paid ` 5,000 for installation of machine wrongly debited in wages A/c. Effect of error will be
(a) There will be difference in trial balance by ` 5,000
(b) There will be difference in trial balance by ` 10,000
(c) No effect on Trial balance and P & L A/c
(d) No effect on trial balance but profit will be reduced by ` 5,000

56. Fixed assets of business are shown

(a) At cost (b) At net realizable value
(c) Cost or NRV whichever is lower (d) Cost or NRV whichever is higher

57. Match the following:

1 AS 15 i Intangible Assets
2 AS 18 ii Accounting for Tax on income
3 AS 26 iii Related Party Disclosure
4 AS 22 iv Employees Benefit
1 2 3 4
(a) iv iii ii i
(b) iv iii i ii
(c) iii iv i ii
(d) iii i iv ii

58. In which century management accounting developed

(a) 15th century (b) 12th century
th
(c) 20 century (d) 21st century

59. Bill discounted are entered in

(a) Journal (b) Dr Side of cash book
(c) Cr side of cash book (d) Bills payable book

60. Ledger have all columns. Except

(a) Date (b) Particulars
(c) Ledger folio (d) Journal folio

61. Indian Contact Act, 1872 is passed by:

(a) Indian Parliament (b) British Parliament
(c) U. S Congress (d) None of these

62. Match the following:

(i) Agreement (a) Right against a specific person
(ii) Contract (b) Agree upon same thing in same sense
(iii) Jus in personam (c) Offer + acceptance
(iv) Consensus ad idem (d) Agreement + enforceability
i ii iii iv
(a) d c b a
(b) c d b a
(c) c d a b
(d) d c a b
63. The juristic concept of contract consists of............
(a) Offer and acceptance (b) Consideration and coercion
(c) Agreement and obligation (d) Free consent and capacity

64. Implied contract, even if not in writing or express words, is perfectly................if other conditions
are satisfied
(a) Voidable (b) Illegal
(c) valid (d) Void

65. In a bilateral contract, obligations are outstanding

(a) An offeror (b) An offeree
(c) On Both (d) On none

66. Silence cannot amount to offer by conduct. it is:

(a) True (b) Partly true
(c) False (d) Partly false

67. Wagering agreements are void due to _______________

(a) Illegal consideration (b) Against public policy
(c) Capacity to contact (d) All of the above

68. Match the following:

(i) Positive offer (a) Striking hammer on table by auctioneer
(ii) Express offer (b) Acceptance of offer with variation
(iii) Implied acceptance (c) An offer to do some act e.g. to sell a car
(iv) Counter - offer (d) Offer in writing or by words of mouth
i ii iii iv
(a) c d b a
(b) d a c b
(c) d c a b
(d) c d a b

69. Which of the following is not the legal requirement of a valid acceptance?
(a) It must be communicable
(b) It must be absolute and unconditional
(c) It must be presumed
. (d) It must be accepted by a person who has the authority to accept

70. An offer may lapse by:

(a) Revocation. (b) Counter Offer.
(c) Rejection of Offer by Offeree. (d) All of these.

71. The inadequacy of consideration will be taken into account by a court of law:
(a) Always at the discretion of the court
(b) When the promisor performs his promise
(c) When absence of free consent is pleaded in the formation of the contract
(d) When the promisor expresses his desire to get maximum return for his promise
72. D P tyre Co. Ltd. sold tyres to a dealer S, who sold those to D, a sub-dealer on the condition that
those tyres would bot be sold at a price lower than the list price fixed by D P Tyre Co. Ltd. and if the
tyres were sold at a price lower than a list price, a penalty for $2 for every tyre sold below the list
price would be recovered as damages. D sold five tyres below the list price. D P Tyre Co. Ltd. filed a
suit against S is D P Tyre Co. Ltd. entitled to maintain the suit?
(a) No since D P Tyre Co. Ltd was not a party to the contract
(b) No since only 5 years are involved and the amount is insignificant
(c) Yes as D P Tyre Co. Ltd. is the producer of the tyres
(d) Yes as D P Tyre Co. Ltd. sold the tyres to S who in turn sold to D.

73. Which one of the following promises is enforceable?

(a) X promises to pay Rs. 5,000/- to Y who saved him from drawing
(b) X promises to pay Rs. 5,000/- to his son
(c) X promises to donate Rs. 5,000/- to an Officer's club.
(d) X promises to pay Rs. 5,000/- as additional fees to his advocate for winning a suit

74. Which of the following statement is true:

(a) Consideration may be past (b) Consideration may be present
(c) Consideration may be future (d) All of the above

75. Ankit, aged 17 years, falsely representing himself to be of 22 years, enters into an agreement to sell
his property to Praveen and receives from Praveen a sum or Rs. 10,00,000 in advance. Out of this
sum, Ankit buys and imported car worth Rs. 5,50,00 and spends the rest on a pleasure trip to France.
After Ankit attained majority, Praveen sues him for the conveyance of the property or, in the
alternative, for the refund of Rs. 10,00,000 and damages. The agreement between Ankit and
Praveen is.
(a) Void ab initio as it is a contract with a minor.
(b) Voidable at the option of Praveen.
(c) Would be valid if Ankit ratifies the agreement on attainting the age of majority.
(d) Valid a Ankit has sold his won property for personal use.

76. Which of the following statement is true?

(a) A contract with a minor is voidable at the option of the minor.
(b) An agreement with a minor can be ratified after he attains majority.
(c) A person who is usually of an unsound mind cannot enter into contract even when he is of a
sound mind.
(d) A person who is usually of a sound mind cannot enter into contract when he is of unsound mind.
77. An agreement entered into by a minor's
(a) Altogether void (b) Voidable
(c) Illegal (d) None of these

78. 'A', a man enfeebled by disease is induced by B's over him as his medical attendant, to agree to pay
'B' an unreasonable sum for his services. It is the case of:
(a) Undue Influence (b) Coercion
(c) Fraud (d) Mistake
79. Silent is fraudulent in the following cases:
(a) If the circumstances of the case are such that, regard being had to them, it is the duty of the
person keeping silence to speak.
(b) Where the circumstances are such that silence is in itself equivalent to speech.
(c) Both (a) and (b).
(d) None of the above.

80. H contracted with NIC Corporation for the erection of a number of houses. In calculating his price for
the houses, H by mistake deducted a particular sum twice over. The corporation affixed its seal to
the contract, which correctly represented its intention.
(a) The contract is now binding.
(b) The contract can be avoided by H.
(c) There is no contract at all, since there is no consensus ad idem.
(d) The contract is not binding.

81. A contract made by mistake about some foreign law is

(a) Void (b) Valid
(c) Voidable (d) Illegal

82. A sold some land to B. At the time of sale both the parties believed to be in good faith that the area
of the land sold was 10 hectares. It however, turned out that the area was 7 hectares only. How is
the contract of sale affected?
(a) The agreement is void. (b) The agreement is illegal.
(c) The agreement is impossible. (d) All of the above.

83. Coercion involves:

(a) Moral pressure (b) Moral or Mental Pressure
(c) Mental Pressure (d) Moral and Mental pressure

84. Where an agreement consists of two parts once legal and the other illegal, and the legal part is
separable from the illegal one, such legal part is __________contract:
(a) Void (b) Valid
(c) Voidable (d) Illegal

85. A tells B that he will file a case against him for theft. B tells to A that he will give the half of the
market price of the theft. This contract is :
(a) Void (b) Voidable
(c) Valid (d) None of these

86. A agrees to pay Rs. One lakh to B if he brings on earth a star from sky. This is a ________Contract.
(a) Illegal (b) Valid
(c) Voidable (d) Void
87. A promise to super intend, on behalf of Y, a legal manufacturer of indigo and an illegal traffic in
other articles. B promised to pay a salary of Rs. 2000 per month
(a) the whole agreement is void
(b) Promise to super intent legal part is valid
(c) Promise for illegal traffic in other article is void
(d) Both (b) and (c)

88. When the performance of a contract becomes subsequently impossible or unlawful, the contract
becomes:
(a) Illegal (b) Void
(c) Invalid (d) Voidable

89. Mukesh Ambani invites Katrina Kaif (a well renowned film actress) to his daughter’s marriage and
dinner party. Katrina accepts the invitation and promises to attend. Mukesh Ambani made special
arrangements for Katrina at the party but she did not turn up. Mukesh Ambani enraged with
Katrina’s behavior, wanted to sue for the loss incurred in making special arrangements. Can he
succed-
(a) Yes
(b) Yes, because there is a breach of promise by Katrina
(c) No
(d) No, because the agreement was a kind of social nature and lacked the intention to create legal
relationship.

90. “A puts Rupees 10 coin in the platform ticket vending machine at the Railway Station”, it amounts
to-
(a) Invitation to offer (b) offer
(c) Express Acceptance (d) Implied Acceptance

91. M offered to sell his land to N for Rupees 28000. N replied purporting to accept the offer and
enclosed a cheque for Rupees 8,000. He also promised to pay the balance in 4 monthly installments
of Rupees 5000 each. Examine the legal position of the acceptance-
(a) It is a valid acceptance
(b) It is not a valid acceptance
(c) It is not a valid acceptance because it was not an unqualified one
(d) None of these

92. X offers to donate Rupees 5000 to an orphanage. The orphanage accepts the offer. Can it recover
amount?
(a) Yes
(b) Yes, because it is a valid contract
(c) No
(d) No, as the agreement is without consideration.

93. A fire broke out in X’ House. He offered to pay an amount of Rupees 5000 to anyone who brought
out his trapped son Y safe. A fireman brought out Y alive. Is X bound to pay?
(a) Yes
(b) Yes, the fireman had done more than what his official duty demanded.
(c) No
(d) No, the fireman already bound to do so.
94. X, a minor makes a promissory note in the name of Y. on attaining majority , he makes a new
promissory note in the place of old one. Here the new promissory note executed after attaining
majority is-
(a) Valid (b) Voidable
(c) Void (d) Void being without consideration

95. Government authorized lotteries are:

(a) Valid (b) Void
(c) Voidable (d) Illegal and Void

96. “All illegal agreements are void but all void agreements are need not to be illegal.” This statement
is-
(a) Incorrect (b) Can’t say
(c) Partly correct (d) Correct

97. Which of the following cannot make contract in any situation?

(a) Idiot (b) Lunetic
(c) Intoxicated (d) All of the above

98. Hari (husband) obtained a release deed of debt from his wife and son under a threat of committing
suicide? Hari’s wife can set aside this contract on the basis of_________
(a) Coercion (b) Fraud
(c) Misrepresentation (d) undue influence

99. What remedy can be provided by court in case of undue influence?

(a) Court may rescind it (b) Enforce it in a modified form
(c) (a) or (b) (d) (a) and (b)

100. There is ___________________on the freedom of contractual right.

(a) no limitation (b) lawful limitation
(c) governance limit (d) All of the above
 VIDYA SAGAR
CAREER INSTITUTE LIMITED
CPT Minor Test – 1 (Part – B)

Instruction: Maximum Marks: 100

1. Use HB Pencil to fill ovals for correct answer. Time : 2 Hours
2. Each question carry one mark. Date : 29.4.2017
3. Negative marking .25 marks for each wrong answer.
4. No negative marking for unattempted questions.

___________________________________________________
01. Find the correct match:
(a) An enquiry into the nature and causes of the wealth of the nation: A.C.Pigou.
(b) Science which deals with wealth: Alfred Marshall.
(c) Economics is the science which studies human behaviour as a relationship between ends and
scarce means which have alternative uses: Robbins
(d) The range of our enquiry becomes restricted to that part of social welfare that can be
brought directly or indirectly into relation with the measuring rod of money: Adam Smith.

02. The law of scarcity:

(a) Does not apply to rich, developed countries.
(b) Applies only to the less developed countries
(c) Implies that consumers wants will be satisfied in a socialistic system
(d) Implies that consumers wants will never be completely satisfied.

03. A study of how increases in the corporate income tax rate will affect the national unemployment
rate is an example of --------------------.
(a) macroeconomics. (b) descriptive economics.
(c) microeconomics. (d) normative economics.

04. State which of the following represents macro from the national point of view.
(a) Turnover ratio of Reliance Ltd.
(b) Capital output ratio of Indian Industries
(c) Debt equity ratio of TELCO
(d) All the above

05. Ram : My corn harvest this year is poor.

Krishan : Don't worry. Price increases will compensate for the fall in quantity supplied.
Vinod : Climate affects crop yield. Some years are bad, others are good.
Madhur : The government ought to guarantee that our income will not fall.
In this conversation, the normative statement is made by:
(a) Ram (b) Krishan
(c) Vinod (d) Madhur
06. If the marginal (additional) opportunity cost is a constant then the PPC would be --------
(a) straight line (b) convex
(c) backward leading (d) concave

07. Assuming that the PPC does not shift, which of the following is true?
Grape Juice (Litres)

Wine (LItres)

(a) Point A is desirable but is inefficient.

(b) Point D represents a more efficient allocation of resources than points A and F.
(c) Point H is desirable but is not attainable.
(d) If wine production equals 7 litres, the maximum amount of grape juice that can be produced
simultaneously is 28 litres.

08. Which of the following represents a movement towards better utilisation of existing resources?
Figure-1
bacon

A
B
F

E
C

Egg
(a) A movement from point A to point B. (b) A movement from point E to point B.
(c) A movement from point C to point B. (d) A movement from point F to point B.

09. If marginal opportunity cost is falling, the PPF would be:

(a) Straight line (b) Concave
(c) Backward bending (d) Convex
10. Which of the following bundles of goods could not be produced with the resources the economy
currently has?

Guns
a
7 d

b PRODUCTION
6
POSSIBILITIES
5 CURVE

3
u c
2

1 2 3 4 5 6 7 8
Butter

(a) a (b) b
(c) c (d) d

11. Which of the following is incorrect?

(a) The central problem in economics is that of allocating scarce resources in such a manner that
society's unlimited needs are satisfied as well as possible.
(b) In mixed economy, the government and the private sector interact in solving the basic
economic questions.
(c) Microeconomics best describes the study of the behaviour of individual agents.
(d) An important theme in economics is that market systems are better than command
(socialistic) economies.

12. Which of the following would be considered a disadvantage of allocating resources using a market
system?
(a) Income will tend to be unevenly distributed
(b) Significant unemployment may occur.
(c) It cannot prevent the wastage of scarce economic resources.
(d) Profits will tend to be low

13. Which of the following pairs of goods is an example of substitutes?

(a) Tea and sugar. (b) Tea and coffee.
(c) Pen and ink. (d) Shirt and trousers.

14. All of the following are determinants of demand except

(a) tastes and preferences (b) quantity supplied
(c) income (d) price of related goods

15. The price of tomatoes increases and people buy tomato puree. You infer that tomato puree and
tomatoes are:
(a) normal goods (b) complements
(c) substitutes (d) inferior goods
16. An increase in the demand can result from:
(a) a decline in market price.
(b) an increase in income.
(c) a reduction in the price of substitutes.
(d) an increase in the price of complements.

17. We can say that fresh milk in economics sense is a/an:

(a) luxury good (b) inferior good
(c) normal good (d) nothing can be said.

18. If a good has price elasticity greater than one then:

(a) demand is unit elastic and a change in price does not affect sellers' revenue.
(b) demand is elastic and a change in price causes sellers' revenue to change in the opposite
direction.
(c) demand is inelastic and a change in price causes sellers' revenue to change in the same
direction.
(d) None of the above is correct.

19. If electricity demand is inelastic, and electric rates increase, which of the following is likely to occur?

(a) Quantity demanded will fall by a relatively large amount

(b) Quantity demanded will fall by a relatively small amount
(c) Quantity demanded will rise in the short run, but fall in the long mn
(d) Quantity demanded will fall in the short mn, but rise in the long mn

X, Y and Z are three commodities where X and Y are complementary goods whereas X and Z are
substitutes.
A shop keeper sells commodity X at Rs. 20 per piece. At this price he is able to sell 100 pieces of X
per month.
After some time, he decreases the price of X to Rs. 10 per piece. Following the price decrease.
He is able to sell 150 pieces of X per month.
The demand for Y increases from 25 units to 50 units.
The demand for commodity Z decreases from 75 units to 50 units.

20. In the above paragraph the cross elasticity of demand for commodity Y when the price of X
decreases from Rs. 20 per piece to Rs. 10 per piece will be equal to :

(a) -1.5 (b) +1.5

(c) +1 (d) -1

21. Suppose price of fashionable Shirts rises from Rs. 400 per piece to Rs. 700 per piece. The Shopping
Mall manager observes that the rise in price causes demand for shirts to fall from 500 shirts per
week to 300 shirts per week. What is the price elasticity of demand for shirts?
(a) 0.916 (b) 1.5
(c) 1 (d) 1.667
22. Demand for a good will tend to be more elastic if it exhibits which of the following characteristics?
(a) It represents a small part of the consumer's income.
(b) The good has many substitutes available.
(c) It is a necessity (as opposed to a luxury).
(d) There is little time for the consumer to adjust to the price change.

23. As income increases, the consumer will go in for superior goods and consequently the demand for
inferior goods will fall. This means:
(a) income elasticity of demand less than one (b) negative income elasticity of demand
(c) zero income elasticity of demand (d) unitary income elasticity of demand

24. Which of the following is incorrect?

(a) The cross elasticity of demand for two substitutes is positive.
(b) The income elasticity of demand is the percentage change in quantity demanded of a good
due to a change in the price of a substitute.
(c) The cross elasticity of demand for two complements is negative.
(d) The price elasticity of demand is always negative, except for Giffen goods.

25. The demand for a factor of production is said to be a derived demand because :
(a) It is a function of the profitability of an enterprise
(b) It depends on the supply of complementary factors
(c) Its stems from the demand for the final product
(d) IT arises out of mens being scarce in relation to wants

26. Total utility is maximum when:

(a) marginal utility is zero (b) marginal utility is at its highest point
(c) marginal utility is equal to average utility (d) average utility is maximum

27. Marginal utility is a __________Concept.

(a) Cardinal (b) Ordinal
(c) Both (a) & (b) (d) None of the above

28. The way in which rational consumers allocate their expenditure on goods and services is best
described by..................

(a) the law of diminishing marginal utility (b) the law of demand
(c) the theory of value (d) the marginal rate of substitution

29. When indifference curve is L shaped then two goods will be:
(a) Perfect substitute Goods (b) Substitute Goods
(c) Perfect complementary goods (d) Complementary goods

30. The substitution effect of fall in the price of the commodity will lead to:
(a) Upward movement in indifference curve
(b) Downward movement in indifference curve
(c) Movement from lower IC to a higher one
(d) None of the above
31. In economics, what a consumer is ready to pay minus what be actually pays, is termed as :
(a) Consumer's equilibrium (b) Consumer's surplus
(c) Consumer's expenditure (d) None of the above

32. The supply of a goods refers to :

(a) Actual production of goods
(b) Total stock of goods
(c) Stock available for sale
(d) Amount of goods offered for sale at a particular price per unit of time

33. A horizontal supply curve parallel to the quantity axis implies that the elasticity of supply is -----
(a) zero. (b) infinite.
(c) equal to one. (d) greater than zero but less than one.

34. If price of computers increases by 10% and supply increases by 25%. The elasticity of supply is:
(a) 2.5 (b) 0.4
(c) (-) 2.5 (d) (-) 0.4

35. If as a result of 10% increase in price, the quantity supplied does not change at all, it implies that the
elasticity of Supply is:
(a) Zero (b) Infinite
(c) Equal to one (d) Greater than Zero but less than one

36. Due to operation of income effect and substitution effect, ___________ effect operates and law of
demand holds:
(a) MRS (b) Price
(c) Both (a) & (b) (d) None of the above

37. Sir Robert Giffen conduct has experiments on ______________:

(a) British workers (b) American workers
(c) Indian workers (d) Italian workers

38. When price of radio is Rs. 500 then quantity demanded is 100 and when price falls to Rs 400
demanded rises to 150. What will be value of price Elasticity of demand:
(a) 1 .5 (b) 1.8
(c) 2.0 (d) -1.8

39. Non durable goods will meet ____________ demand:

(a) current (b) future
(c) both (a) & (b) (d) None of the above

40. Taste and preferences of consumers sometimes changes due to __________ and _______ causes:
(a) External, Internal (b) Good and bad
(c) Open and Close (d) All of the above

41. Utility is _____________ satisfaction by consumer and satisfaction is __________:

(a) anticipated, actual (b) actual, anticipated
(c) usefulness, anticipated (d) None of the above
42. In case of very essential goods of life utility is very high but prices paid for then are low giving rise to
___________ surplus satisfaction:
(a) Infinite (b) zero
(c) more than 1 (d) less than 1

43. Consumer equilibrium can be attained where:

(a) Price line is tangent to ISO utility curve
(b) MRS of good X and Y is equal to ratio between prices of two goods
(c) Both (a) & (b)
(d) None of the above

44. Theory of distribution studies the problem of:

(a) What goods to produce and how much to produce
(b) How to produce
(c) For whom to produce
(d) All of the above

45. Normative economics is based on:

(a) Cause and effects of facts (b) Ethics
(c) Value judgements (d) Both (b) & (c)

46. Which one of the following steps relates by the deductive & inductive method.
(a) Testing of hypothesis (b) Collection of data
(c) Classification of data (d) perception of the problem.

47. In capitalist system the problem “what to produce “decided by the:

(a) Producer (b) Consumer
(c) Government (d) All of the above.

48. Which of the following incorrect statement?

(a) Price mechanism is allowed to operate under mixed economy.
(b) Socialism ensures right to work
(c) All activities under capitalism enjoy the maximum amount of liberty
(d) None of these.

49. Which statement is incorrect?

(a) Economics is not a perfect Science
(b) Science is theoretical & art is practical
(c) Money is a dependent variable
(d) None of these

50. Which of the following statement is false?

(a) es is infinity all along any horizontal supply curve
(b) es is 1.0 all along any supply curve which passes through the orgin
(c) ed is zero all along any vertical demand curve
(d) ed is -1.0 along any demand curve where spending would be the same at each price.

51. Which ratio is greater 2 : 3 ; 3.6 : 4.8

(a) 2 :3 (b) 3.6 : 4.8

(c) Both are equal (d) None of these
52. If =- then the value of is :

(a) 1 (b) - 1/7

(c) 1/7 (d) 7

53. An employer reduces the number of employees in the ratio of 9:8 and increases their wages in the
ratio of 14:15. In what ratio is the wages bill decreased?
(a) 20:22 (b) 20:33
(c) 21:20 (d) None of these

54. If a:b = c:d = 3: 5, then what is the value of ad : bc

(a) 3:5 (b) 5:3
(c) 1:1 (d) None of these.

55. If a / b = c / d, implies (a + b) / (a - b) = (c + d) / (c - d), the process is called

(a) Componendo (b) Dividendo
(c) Componendo and Dividendo (d) None of these

56. [{(2)1/2 . (4)3/4 . (8)5/6 . (16)7/8 . (32)9/10}4]3/25 is :

(a) A fraction (b) An integer
(c) 1 (d) None of these

57. Show that x x reduces to:

(a) 1 (b) 3
(c) -1 (d) None of these

58. Given log2 = 0.3010 and log3 = 0.4771 the value of log 6 is:
(a) 0.9030 (b) 0.9542
(c) 0.7781 (d) None of these

59. If + = 2 then value of x is:

(a) 10-1 (b) 102
(c) 10 (d) 103

60. + + is equal to:

(a) 0 (b) 1
(c) 3 (d) -1

61. The value of y that satisfies the equation – = is :

(a) -1 (b) 7
(c) 1 (d) -
62. The sum of digits of a two digit number is 10. If 18 be subtracted from it the digits in the resulting
number will be equal. The number is :
(a) 37 (b) 73
(c) 75 (d) None of these

63. Two squares have sides p cm and (p + 5) cms. The sum of their squares is 625 sq. cm. The sides of the
squares are :
(a) (10 cm, 30 cm) (b) (12 cm, 25 cm)
(c) (15 cm, 20 cm) (d) None of these

64. If P + √P = 6/25, then value of P is equal to:

(a) 1/5 (b) 2/5
(c) 1/25 (d) 2/25

65. The value of

(a) 1+ (b) 1
(c) 1 (d) None of these

66. The equation 3x³ + 5x² = 3x + 5 has got 3 roots and hence the factors of the left-hand side of the
equation are:
(a) x - 1, x - 2, x - 5/3 (b) x - 1, x + 1, 3x + 5
(c) x + 1, x - 1, 3x - 5 (d) x - 1, x + 1, x – 2

67. The equation of the line passing through the point of intersection of 2x + 3y - 5 = 0 and 7x - 5y - 2 = 0
and parallel to the lines 2x - 3y + 14 = 0 is :
(a) 2x - 3y + 1 = 0 (b) 2x - 3y -1 = 0
(c) 3x + 2y + 1 = 0 (d) 3x + 2y - 1 = 0

68. The points A(2, 3) B(4, k) and C(-2, 7) are collinear. Then find the value of k :
(a) 5 (b) 6
(c) 8 (d) 1

69. If A : B : C = 2 : 3 : 4 then : : is equal to:

(a) 4 : 9 : 16 (b) 8 : 9 : 12
(c) 8 : 9 : 15 (d) 8 : 9 : 24

70. A Dealer mixes tea costing Rs. 6.92 per kg, with tea costing Rs. 7.77 per kg and sells the mixture of
Rs. 8.80 per kg and earns a profit of 17.5% on his sale price. In what proportion does he mix them:
(a) 2:3 (b) 3:2
(c) 1:3 (d) 3:1

71. x - [1 - {1 – (1 – x5)-1 }-1]-1/5 =

(a) x (b) x5
(c) 1 (d) 0
72. The value of log + log + log is
(a) 1 (b) 0
(c) log (d) None of these

73. - + - = 0 then is:

(a) 10 (b) 100
(c) 1 (d) None of these

74. If α, β be the roots of quadratic equation 5x2 – 7x + 2 = 0 then form the equation whose roots are ,

(a) 5x2 – 3x + 2 = 0 (b) 2x2 – 7x + 5 = 0

(c) 7x2 – 5x + 2 = 0 (d) None of these

75. Lines 3x – 2y + 7 = 0 and 6x – 9y + 19 = 0 are:

(a) Parallel (b) Perpendicular
(c) Coincide (d) Intersecting each other in oblique form

76. Which of the following combination is correct:

A. German 1. Statista
B. Latin 2. Statistik
C. Italian 3. Status
D. French 4. Statistique
(a) A-1, B-2, C-3, D-4 (b) A-2, B-3, C-1, D-4
(c) A-3, B-1, C-4, D-2 (d) A-4, B-2, C-1, D-3

77. Which of the following statements is untrue for tabulation :

(a) Statistical analysis of data requires tabulation
(b) It facilities comparison between rows and not columns
(c) Complicated data can be presented
(d) Diagrammatic representation of data requires tabulation

78. Mutually exclusive classification :

(a) Excludes both the class limits
(b) Excludes the upper class limit but includes the lower class limit
(c) Includes the upper class limit but excluded the lower class limit
(d) Either (b) or (c)

79. The primary rules that should be observed in classification.

(i) As far as possible, the class should be of equal width
(ii) The classes should be exhaustive.
(iii) The classes should be unambiguously defined
Then which of the following is correct
(a) Only (i) and (ii) (b) Only (ii) and (iii)
(c) Only (i) and (iii) (d) all (i), (ii) and (iii)
80. Refer following table:
Frequency distribution of weights of 16 students
Weight in kg. No. of students
(Class interval) (Frequency)
44- 48 4
49- 53 5
54- 58 7
Total 16
Find Relative frequency for the second class interval?
(a) 1/11 (b) 5/4
(c) 5/16 (d) 1/4

81. The weighted arithmetic mean of first n natural numbers whose weights are equal to the
corresponding numbers is equal to:
(a) (b)

(c) (d) None of these

82. For finding A.M in Stepdeviation method, the class intervals should be of:
(a) equal lengths (b) unequal lengths
(c) maximum lengths (d) None of these

83. _____________are used for measuring central tendency, dispersion & skewness:
(a) Median (b) Deciles
(c) Percentiles (d) Quartiles.

84. In Ogive, abscissa corresponding to ordinate N/2 is

(a) median (b) 1st quartile
(c) 3rd quartile (d) None of these

85. In a symmetrical distribution when the 3rd quartile plus 1st quartile is divided by 2 it would give:
(a) mean (b) mode
(c) median (d) None of these

86. Variable : 2 3 4 5 6 7
no. of men : 5 6 8 13 7 4
Mode is
(a) 6 (b) 4
(c) 5 (d) None of these

87. Weighted average are considered when:

(a) The data are not classified
(b) The data are put in the form of grouped frequency distribution
(c) All the observations are not of equal importance
(d) Both (a) and (c)
88. If the A.M. and H.M for two numbers are 5 and 3.2 respectively then the G.M will be:
(a) 4.05 (b) 16
(c) 4 (d) 4.10

89. S.D. of first n natural numbers is:

(a) (b)

(c) (d) None of These

90. Karl Pearson's measure gives

(a) coefficient of Mean Variation (b) coefficient of quartile deviation
(c) coefficient of variation (d) None of these

91. What is the coefficient of range for the following distribution:

Class interval 10 – 19 20 - 29 30 - 39 40 - 49 50 - 59
Frequency 11 25 16 7 3
(a) 22 (b) 50
(c) 75.82 (d) 72.46

92. For a set of values :

(a) Mean deviation is always less than standard deviation
(b) Mean deviation is always greater than standard deviation
(c) Mean deviation is always equal to standard deviation
(d) None of these

93. A person purchase one kilogram of cabbages from each of the four places at the rate of 20 kg, 16 kg,
12 kg and 10 kg per rupee respectively. Average rate of Cabbages is:
(a) 14.54 paisa / per kg (b) 13.54 paisa / per kg
(c) 12.54 paisa / per kg (d) 7.395 paisa / per kg

94. Which of the following can be used for making short term projections:
(a) Histogram (b) Ogive
(c) Frequency Polygon (d) Frequency curve

95. If in the distribution > M > Z then it is a:

(a) Symmetrical Distribution
(b) Moderately asymmetrical distribution whose left hand tail is longer
(c) Moderately asymmetrical distribution whose right hand tail is longer
(d) Indeterminate distribution

96. You are given the following data for 20 observation ∑(x1 – 10) = 40. Find the mean of 20 observation:
(a) 12 (b) 13
(c) 14 (d) 15
97. Which of the following is taken as the first step towards the other methods of presentation?
(a) Diagrammatic (b) Tabular
(c) Textual (d) None of these

98. Find the number of observations less than 300:

Values More than 200 More than 250 More than 300 More than 350
No. of observations 56 38 25 10
(a) 23 (b) 56
(c) 31 (d) None of these

99. Coefficient of QD for X is 6.25. What is coefficient of QD for Y if Y + 5X = 0:

(a) 6.25 (b) -6.25
(c) 31.25 (d) -31.25

100. If MD of a symmetrical distribution is 10 and mode is 20. Find coefficient of variation:

(a) 62.5 (b) 50
(c) 200 (d) None of these
 Minor Test 1 Dt 29.04.2017
Part A
1 A 21 C 41 B 61 A 81 A
2 B 22 A 42 B 62 C 82 A
3 C 23 D 43 D 63 A 83 C
4 A 24 C 44 A 64 C 84 B
5 C 25 B 45 B 65 C 85 A
6 A 26 D 46 B 66 A 86 D
7 C 27 A 47 D 67 B 87 A
8 C 28 A 48 C 68 D 88 B
9 D 29 D 49 C 69 C 89 D
10 C 30 A 50 B 70 D 90 D
11 C 31 B 51 C 71 C 91 C
12 A 32 C 52 B 72 A 92 D
13 B 33 C 53 D 73 A 93 B
14 A 34 B 54 B 74 D 94 D
15 C 35 A 55 D 75 A 95 D
16 A 36 B 56 A 76 D 96 D
17 A 37 C 57 B 77 A 97 A
18 B 38 D 58 C 78 A 98 A
19 C 39 D 59 B 79 C 99 C
20 C 40 A 60 C 80 A 100 B

Part B
1 C 21 A 41 A 61 D 81 A
2 D 22 B 42 A 62 B 82 A
3 A 23 B 43 C 63 C 83 D
4 B 24 B 44 C 64 C 84 A
5 D 25 C 45 D 65 A 85 C
6 A 26 A 46 D 66 B 86 C
7 C 27 A 47 B 67 A 87 C
8 B 28 A 48 D 68 D 88 C
9 D 29 C 49 D 69 D 89 C
10 D 30 C 50 D 70 B 90 C
11 D 31 B 51 B 71 D 91 D
12 A 32 D 52 C 72 C 92 A
13 B 33 B 53 C 73 B 93 D
14 B 34 A 54 C 74 B 94 B
15 C 35 A 55 C 75 D 95 C
16 B 36 B 56 B 76 B 96 A
17 C 37 A 57 A 77 B 97 C
18 B 38 B 58 C 78 B 98 C
19 B 39 A 59 A 79 B 99 B
20 D 40 A 60 B 80 C 100 A