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Q - 1 .Opening stock of raw material is Rs.30 lacs, closing stock is Rs.50 lacs. Annual purchase is Rs.500 lacs. What is the average period of holding of Raw Materials?

2 M
1.5 M
1 M
NOA

Q - 2 .As per the Second method of lending the borrowers contribution from long term source

is minimum 25% of total current assets
is restricted to 25% of working capital gap
is 25% of other current liabilities
any amount which the unit can bring

Q - 3 .A method of calculating depreciation of an asset , which assumes that the asset will lose an equal amount of value each year is known as

Salvage value
Depreciation
Straight line Method of calculation
Accumulated Depreciation

Q - 4 .A floating charge means

Charge at the time or before the company is floated
Charge on all floating assets of the company
An equitable charge on all assets of the company
Any of the above

Q - 5 .A unit is showing a net profit of Rs.46,000/-. Dividend received Rs.8000/-. Operating expenses is Rs.96000/-. Find the gross profit

134000
150000
142000
132000

Q - 6 .As per RBI guidelines, a bank is required to assess the working capital on the basis of the following method

Turnover Method
Cash Budget Method
MPBF of Tandon Method
Any Method as decided by the individual banks

Q - 7 .The joining of a new person into the existing partnership as a partner is called

Retirement of a partner
Resolution of a partnership
Good will
Admission of a partner

Q - 8 . In case of Direct quotation if the forward rate is more than spot rate the base currency is called as being at -----

Discount
Forward rate
Spot rate
Premium

Q - 9 .Ramesh deposited Rs 10,000/ for 3 years . The Interest is compounded annually at 10% . What will be the amount receivable by Ramesh at the end of 3 year period

13310
13000
12000
13300

Q - 10 .Schedule VI of the Companies Act prescribes the form of

Balance sheet
Trading Account
Balance sheet
None of the above

Q - 11 .For determining the advance amount the shares will be valued on the basis of

Current market price
Average market price for the last 12 months
Face Value
A or B whichever is lower

Q - 12 .Reserve created out of profit from business operation is known as

Capital Reserve
Profit Reserve
Revenue Reserve
Free Reserve

Q - 13 .A company has a networth of Rs.5 lacs. Term liability Rs.10 lacs, Fixed Asset of Rs.16 lacs and Current Asset Rs.25 lacs. There is no intangible asset or ONCA. It's net working capital is

Rs. 10 lakhs
Rs. 1 lakh
Rs. 9 lakh
Rs. (-) 1 lakh

Q - 14 .A borrower need not bring any matching contribution from long term sources in respect of

Export Receivables
Finished goods produced for a specific export order
Adhoc limits
A & B

Q - 15 .Creditors Velocity expresses the

Maximum period for which credit is given
Average period of credit enjoyed
Minimum period of credit given
Minimum period for which credit enjoyed

Q - 16 .This is the amount by which an asset is expected to lose its value. What is this

Market value
Wear and tear
Depreciation
NAP

Q - 17 .The following is not a chargeable current assets

Book debt
Spares
Work in process
Construction work in progress

Q - 18 .When shares are issued at higher than the face value of the shares they are said to be issued at a

Discount-
Par-
Premium
None of the above

Q - 19 . A Company makes a single product with a sales price of Rs.10/- and a marginal cost of Rs.6/-. Fixed Cost are Rs.60000/- p.a. In this case, Number of units at break even

15000
10000
6000
None of Above

Q - 20 .The State Govt. wants to seize the goods pledged to bank as the borrower has defaulted in payment of tax. In this case,

Govt dues enjoys priority over bank dues
Bank dues enjoys priority over Government dues
Both enjoys equal priority
The Government cannot seize the goods

Q - 21 .What is the formula for charging compound interest with Annual Compounding

I = Pnr
P+I
A = P( 1+r)n
Any of the 3

Q - 22 .A credit facility will be classified as NPA if_____remains past due for one quarter

Interest
Instalment
A or B
A & B

Q - 23 .The home currency price of one unit of a foreign currency is quoted eg USD 1 = Rs43.20

Indirect quotation
Exchange rate
Rate of USD
Direct quotation

Q - 24 .The duration of an operating cycle in 30 days. The operating cycle in this case repeats_________ times a year

30 times
12 times
10 times
52 times

Q - 25 .The auctionable claim is assigned in favour of more than one assignee at different points of time. The priority of charge is determined with reference to date of

Execution of notice of assignment
Execution of the written instrument for assignment
Receipt of notice of assignment
NoA

Q - 26 .If the partnership does not mention any method of maintaining capital account then _______ method of capital has to be used

Fluctuating capital account
Partners Current account
Capital account
Fixed capital account

Q - 27 .The following is a Means of Finance for the cost of project

Leasing
Subsidy
Deferred Credit from Suppliers
All the above

Q - 28 .The Companies Act prohibits issue of any preference share that is _______

Cumulative
Redeemable
both a and b
Irredeemable

Q - 29 .The form of Balance sheet and Profit and loss account of a Banking Company is prescribed in forms A and B of _______ schedule of the Banking Regulation Act 1949

Second
Third
First
Fourth

Q - 30 .Accounting software may be written in any one of the computer languages such as

Windows, UNIX etc
JAVA C+ etc
COBOL, Foxpro etc
None of the above

Q - 31 .Assignment of LIC policy is done as per section& & of & & . Act

132 of Transfer of Property Act
38, Indian Insurance Act 1938
138 of Contract Act
NOA

Q - 32 .As per NABARD guidelines the minimum Internal Rate of Return for Agricultural Project is

15%
25%
30%
18%

Q - 33 .A computer Accounting system runs based on a set of instructions called the software programmes developed by a person who is a computer software professional and he is called ________

Programmer
Software Engineer
IT man
None of the above

Q - 34 .Variable Cost and Sale Price remaining the same, a rise in fixed cost result in

High BEP ( High Break even point)
Low BEP
High Margin of Safety
B & C

Q - 35 . A Bridge finance is extended for overcoming

Delay in getting of the public issue
Delay in disbursement of term loan
Delay in disbursement of working capital for completing the documentation
For A & B

Q - 36 .The formation of a company is governed by the rules and regulations as contained in

Indian Companies Act
RBI act
BR Act
None of the above

Q - 37 .Computers are basically classified into

Analogue Computers and Digital computers
Hardware and software
Wipro and Infosysis
All the above

Q - 38 .The value which the bond holder gets on maturity is called

Maturity value
NAV
the redemption value
IRR

Q - 39 .As per new guidelines both SLR and non SLR securities are to be classified into

Held to maturity
Available for sale
Held for trading
All the above

Q - 40 . Assets minus original capital = Liability

True
0
can be accepted
None of the above

Q - 41 .A person who owes money to a firm , mostly on account of credit sales of goods is called

Creditor
Debtor
Borrower
lender

Q - 42 .The charge by way of lien over goods belonging to a company must be registered with Registrar of Companies within a period of

30 days of creation of law
This charge need not be registered as this is not hypothecation, mortgage etc
30 days of default in repayment
A or C whichever is earlier

Q - 43 .Diversion means

Diversifying to activities not related to main business
Retrenching employees
Use of Current Assets for payment of Term Liability
Use of Current Liabilities for long term use

Q - 44 .The long term use is 120% of long term source. This indicates the unit has

CR 1.2
Negative TNW
Low Capital
Negative NWC

Q - 45 .A Mortgage of the mortgaged property is called

Sub-mortgage
Second Mortgage
Re-mortgage
Fraudulent Mortgage

Q - 46 .An Annuity is an ordinary Annuity if,

Payments are required to be made at the beginning of each period
Payments are required to be made at the middle of each period
Payments are required to be made at ordinary installments
Payments are required to be made at the end of each period

Q - 47 .The amount which the owner of the business has invested in the firm and can claim from the firm is known as ___________

Capital
Loan
Term Loan
Fixed Asset

Q - 48 .Holding period of Receivables is calculated with reference to

Cost of Sales
Cost of Production
Gross Sales
NOA

Q - 49 .Banking Ombudsman is appointed by

Central Government / Ministry of Finance
State Government
IDBI
RBI

Q - 50 .The capital which is stated in the Memorandum of Association is known as

Memorandum Capital
Paid up capital
Authorised capital
Issued capital

Online Tests for Legal & Regulatory Aspects of Banking

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