UGC NET Mock 3 on Commerce – 20 Questions for Practice

1. Assertion (A): Accounting information refers to only events which are concerned with business firm.
Reason (R): Accounting information is presented in financial statements.

2. Income and Expenditure Account of non-profit organisation is a

3. Receipts and Payments Account is prepared by

4. Which of the following statements are correct?
I. Inventory includes raw materials, finished goods and work – in – progress.
II. Inventory is a part of the working capital.
III. Inventory includes goods likely to be purchased.

5. Which among the following are important bodies of WTO?
i. Dispute Settlement Body.
ii. NAFTA
iii. Trade Policy Review Body.
iv. ASEAN
v. Council for Trade in Goods
vi. IBRD
vii. Council for Trade related aspects of Intellectual Property Rights.
viii. GATT
An appropriate combination is

6. The main objective of Accounting Standards is

7. When the Debt Turnover Ratio is 4, what is the average collection period?

8. Owners equity stands for

9. The funds available with a company after paying all claims including tax and dividend is called

10. Which one is not the source of External Finance?

11. Which one is called Bretton-Wood Twins?

12. If the current ratio is 2: 1 and working capital is Rs. 60,000, what is the value of the Current Assets?

13. In marginal costing, contribution is equal to

14. UNCTAD stands for

15. Which of the following will result into sources of funds?
(i) Increase in current assets
(ii) Decrease in current assets
(iii) Increase in current liabilities
(iv) Decrease in current liabilities

16. When average cost is declining

17. Given below are two statements:
I. Activity ratios show where the company is going.
II. Balance Sheet ratios show how the company stand.

18. In accounting, profit prior to incorporation is treated as

19. ABC Ltd. has declared 40% dividend. Which one of the following does it mean?

20. International liquidity comprises which four of the following?
i. Gold held by Central Banks.
ii. Gold held by families.
iii. Forex Reserve held by Commercial Banks.
iv. Mineral wealth.
v. SDRs.
vi. Borrowing facilities.
vii. NRIs FDRs
viii. Credit facilities available under SWAP.