1. When the existing companies raise additional funds by issue of shares to the existing shareholders in proportion to their existing shareholdings it is called-”

2. Which of the following statement is correct ?

3. Principle of -˜Unity of Command-™ means-”

4. The following data relates to manufacturing company for the year 2006-07-” Net Profit as per P & L A/c-”Rs. 240000; Depreciation-”Rs. 80000; Goodwill written-off-”Rs. 40000 Profit on Sale of Fixed Assets-”Rs. 16000 Proposed Dividend-”Rs. 96000. The fund from operation would be-”

5. Audit adopted by banking company is-”

6. Internal check means-”

7. Fire Insurance is based on the principle of-”

8. Recording of capital contributed by the owner as liability ensures the adherence of principle of-”

9. Increase in fixed asset due to purchase is-”

10. Social Accounting means-”

11. In order to reduce the risk of heavy insurance the insurer passes on some business to the other company it is called-”

12. -œAuditor is not an insurer." In which of the following cases the decision has been given ?

13. The following data are provided to you. Fixed cost - Rs. 20000; Selling price per unit - Rs. 25 Variable cost per unit - Rs. 20. Find out selling price per unit if B.E.P. is brought down to 2000 units.

14. Appointment of a person who is a Director as a Secretary in the Company would require approval of the company by-”

15. The following information is obtained from the records of K Co. Ltd.-” Sales (100000 units) Rs. 100000 Variable cost Rs. 40000 Fixed cost Rs. 30000 Find out margin of safety.

16. Motivation - Hygiene Theory was propounded by-”

17. To appoint new auditor in place of retiring auditor to adopt the procedure which section of Companies-™ Act 1956 is applicable ?

18. The first Stock Exchange in India was established in-”

19. A manufacturer is operating at 50% of its capacity due to competition. The following are the details. Raw materials Rs. 6 per unit Direct Labour Rs. 4 per unit. variable overhead - Rs. 3 per unit fixed overhead - Rs. 2 per unit output 15000 units total cost Rs. 225000 sales value Rs. 210000 loss Rs. 15000. A foreign customer wants to buy 6000 units at Rs. 13-¢50 per unit and the company does not know whether to accept or not as it is suffering losses at the current level. Advise what he should do ?

20. Total sales is Rs. 760000 cash sales Rs. 30000 collection period is 25 days debtors at Balance Sheet date will be-”

21. A fire occurred in the premises of -˜M-™ Ltd. on 30th September 2007. The stock was destroyed except to the extent of Rs. 10000. From the information given below calculate the value of stock burnt by fire on 30th September 2007. Stock on 1st April 2006 Rs. 90000 Purchases less returns during 2006-07-”1000000 Sales less returns during 2006-07 1500000; Stock on 31st March 2007-”180000 Purchases less returns from 1st April 2007 to 30th September 2007 700000. Sales less returns from 1st April 2007 to 30th September 2007 1000000. It was the practice of the company to value stock less 10%-”

22. Verification includes-”

23. Bombay Stock Exchange Sensex consists of -¦-¦-¦ script as on 31st March 2005.

24. A company made the purchases of an item during its financial year. January 2007 200 @ Rs. 50 each May 2007 400 @ Rs. 60 each August 2007 600 @ Rs. 70 each Novem- 2007 300 @ Rs. 80 each ber Closing inventories were 500 articles. Find out the value of closing stock as per Weighted Average Method-”

25. Convertibility of the rupee implies-”