Multiple Choice Questions (MCQ) with Answers on Commerce – Set 2
1-Ethics may be defined as:
(A) A code of conduct
(B) A code of material
(C) A code of manager
(D) None of the above
(Ans: A)
2-Need Hierarchy theory of motivation is propounded by:
(A) Maslow
(B) Mc Gregor
(C) Herzberg
(D) None of the above
(Ans: A)
3-The leadership style which is based on consultations with his group is called:
(A) Autocratic style
(B) Democratic style
(C) Paternalistic style
(D) None of the above
(Ans: B)
4-When a leader does not interfere with the working of his group, the leadership style is known as:
(A) Free rein style
(B) Participative style
(C) Authoritarian style
(D) None of the above
(Ans: A)
5-Principle of ‘Span of Control’ is concerned with:
(A) Class of employees to be controlled
(B) Number of employees to be controlled
(C) Managerial level of employees
(D) None of these
(Ans: B)
6-Liquidity ratios are used:
(A) to assess the financial position of the firm at a point of time
(B) to evaluate the performance of the firm over a period of time
(C) to judge a firm’s ability to meet short term obligations
(D) to assess the present and expected earnings of the firm
(Ans: C)
7-In case of an unregistered firm a partner cannot:
(A) get a share in profit
(B) get interest on his capital
(C) file a suit against another partner
(D) get interest on loan
(Ans: C)
8-Revenue is generally recognised as being earned at the point of time, when:
(A) Sale is affected
(B) Production is complete
(C) Cash is received
(D) In financial year
(Ans: C)
9-Liability of partners for firm’s debt is:
(A) Joint
(B) Separate
(C) Joint and separate
(D) None of the above
(Ans: C)
10-The convention of conservatism implies that:
(A) expected future losses must be provided for
(B) revenue must not be recognised unless it is accrued
(C) both of the above
(D) none of these
(Ans: A)
11-Going concern assumption of accounting is also known as:
(A) continuity assumption
(B) monetary unit assumption
(C) accounting period assumption
(D) none of the above
(Ans: A)
12-The accounting convention of matching means:
(A) Profit for the sales to be matched with the sales revenue
(B) Profit for the period to be matched with the investment
(C) Expenses of a period to be matched with the revenue of the same period
(D) Partners must get equal share in profit
(Ans: C)