Haryana Public Service Commission (HPSC)

Assistant Professor(2025)
MOCK Test No.1
1. If prime cost is Rs. 1,80,000, factory expenses Rs. 20,000 and establishment
expenses Rs. 10,000, then what will be the cost of production?
(a) Rs. 2,10,000
(b) Rs. 2,80,000
(c) Rs. 2,90,000
(d) Rs. 2,70,000

2. Which method of costing would you recommend for a drug manufacturing

company?
(a) Unit costing
(b) Contract costing
(c) Batch costing
(d) Operating costing

3. Prime cost includes :

(a) Direct material
(b) Direct labour
(c) Direct expenses
(d) All of the above

4. Which of the following methods of wage payment does not guarantee wages
on time
basis?
(a) Halsey premium plan
(b) Rowan premium plan
(c) Piece rate system
(d) Time rate plan

5. Total of which transaction is posted in purchase Account?

(a) Purchase of furniture
(b) Cash and credit purchase
(c) Purchase return
(d) Purchase of stationery

6. In a building contract of Rs. 1,50,000, the certified work at the end of financial
year is Rs. 1,00,000 and estimated profit is Rs. 12,000.What is the amount of
profit to be credited to Profit and Loss Account assuming cash received ratio to
75%?
(a) Rs. 5,333
(b) Rs. 6,000
(c) Rs. 10,000
(d) Rs. 9,000

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7. Selling price per unit Rs. 9, variable cost per unit Rs. 6, fixed cost Rs. 54,000,
sales Rs.1,80,000; margin of safety in units will be :
(a) 2,000
(b) 16,000
(c) 17,000
(d) 18,000

8. Expenditure incurred on the inauguration of a new factory building is:

(a) Revenue Expenditure
(b) Capita Expenditure
(c) Prepaid Expenditure
(d) Contingent Expenditure

9. Which is the accounting concept that requires the practice of crediting closing
stock to the Trading Account?
(a) Going concern
(b) Cost
(c) Realisation
(d) Matching

10. Contingent liability is shown owing to :

(a) Convention of conservatism
(b) Convention of materiality
(c) Convention of full disclosure
(d) Dual aspects concept

11. The credit purchase of fixed asset is recorded in :

(a) Purchase book
(b) Cash book
(c) Journal proper
(d) Sales returns book

12. Opening stock of stationery is Rs. 200, Purchase during the year is Rs. 2,000
and amount of stock in hand at the end of year is Rs. 400. Then amount of
stationery transfer to Profit and Loss A/c will be :
(a) Rs. 2,400
(b) Rs. 2,600
(c) Rs. 2,200
(d) Rs. 1,800

13. Trial balance is prepared with the help of:

(a) Purchases book and sales book
(b) Cash book and journal
(c) Cash book and ledger
(d) All subsidiary books

14. Which of the following is correct?

(a) Liabilities = Assets + Capital
(b) Assets = Liabilities - Capital
(c) Capital = Assets + Liabilities
(d) None of these

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15. A and B are partners sharing profit and loss in the ratio of 3 : 2. They
admitted C for 1/5 share of profit. C brings Rs. 35,000 for goodwill. Their new
profit ratio is 5 : 3 : 2. A and B will be credited for goodwill by …….. and ........
respectively:
(a) Rs. 21,000
(b) Rs. 17,500
(c) Rs. 17,500
(d) Rs. 20,000

16. Interest received during the year but not earned will be shown in :
(a) Debit side of Trading Account
(b) Debit side of Profit and Loss Account
(c) Assets side in Balance Sheet
(d) None of these

17. A, B and C are partners in proportion of 5 : 3 :2 respectively. D is admitted in

the firm as partner with 1/5 of share. New ratio will be :
(a) 5:3:2:1
(b) 10:6:5 :4
(c) 10:4:6:5
(d) 10:6:4:5

18. An auditor can continue up to :

(a) 12 months from the last annual general meeting
(b) Till the conclusion of next annual general meeting
(c) The direction of Company Registrar
(d) Contractual period

19. A company forfeited 30 shares of Rs. 100 each on which Rs. 80 per share has
been called up. On these shares, Rs. 20 per share has been paid on application
and Rs. 40 per share on allotment. While passing an entry on forfeiture the
forfeited share account will be credited with:
(a) Rs. 400
(b) Rs. 1,800
(c) Rs. 3,000
(d) Rs. 2,400

20. Test checking implies checking:

(a) Each and every item
(b) A representative sample of items
(c) Only a few items in detail
(d) Random items

21. Auditing has been originated in:

(a) England
(b) America
(c) China
(d) None of these

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22. 'True and Fair' is the result of:
(a) Kingston Cotton Mills Co. case
(b) London and General Bank Ltd. case
(c) Royal Mill Steam Packet Company case
(d) S.P. Chatterson & Sons Ltd. case

23. The subsidiary voucher produced in the absence of primary voucher is called
as :
(a) General voucher
(b) Notebook voucher
(c) Counterfoil
(d) Collateral voucher

24. Administration is not concerned with the following :

(a) Guidance
(b) Leadership
(c) Implementation
(d) Controlling

25. Which of the following cannot be classified as an object of business?

(a) Investment
(b) Productivity
(c) Innovation
(d) Profit earning

26. Disinvestment of public sector enterprises implies:

(a) Sale of equity shares to private sector/public
(b) Closing down operations
(c) Investment in new area
(d) None of these

27. The following is not an essential element of organisation :

(a) Division of labour
(b) Human group
(c) Structure of relationships
(d) Budget and accounting system

28. Scientific Management does not concern with one of the following :
(a) Fatigue Study
(b) Mental Study
(c) Motion Study
(d) Time Study

29. The Life Insurance Corporation of India is a:

(a) Government company
(b) Co-operative society
(c) Private company
(d) None of these

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30. In which year the Industrial Finance Corporation of India was established?
(a) 1948
(b) 1956
(c) 1964
(d) 1974

31. Optimum Firm is a firm in which existing ability has the :

(a) Modest average cost of production per unit
(b) Lowest average cost of production per unit
(c) Maximum profit per unit
(d) Minimum profit per unit

32. Which of the following is not required for registration of a company?

(a) List of Directors of Company
(b) Memorandum of Association
(c) Articles of Association
(d) List of Employees of Company

33. Productivity does not concern with the following:

(a) Optimum level of performance
(b) Minimum expenditures
(c) Coordinated resources
(d) Maximum profit

34. Organisation chart may be prepared excluding one of the following ways :
(a) Top-down chart
(b) Down-top chart
(c) Left to right chart
(d) Circular chart

35. The following is not the basic element of process of delegation :

(a) Assignment of duties
(b) Grant of authority
(c) Creation of obligations
(d) Performance of obligations

36. The extraordinary general meeting can be convened in a financial year :

(a) 4 time
(b) 3 time
(c) As many times as it may require
(d) 6 times

37. Which factors is/are essential for localisation of industries?

(a) Power resources
(b) Supply of labour
(c) Climatic factors
(d) All of the above

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38. The propounder of Administrative Management was :
(a) Fayol
(b) Taylor
(c) Terry
(d) Hicks

39. A Company Secretary has to be :

(a) A firm or body corporate
(b) Registered with SEBI
(c) Person with desired professional degree
(d) Part of any secretarial agency

40. A valid Annual General Meeting of any company may be held on :

(a) 3 p.m. on Friday 2nd October
(b) 11 a.m. on Sunday 4th October
(c) 9 p.m. on Monday 5th October
(d) None of these

41. The proxy has a right to :

(a) vote by show of hands
(b) speak at a meeting
(c) vote on the poll
(d) all of the above

42. The duties of Company Secretary regarding company meetings are restricted
up to :
(a) Before company meeting
(b) During company meeting
(c) After company meeting
(d) All of the above situations

43. The quorum required for private company is :

(a) 2
(b) 3
(c) 4
(d) 5

44. Consumer Protection Act came into force with effect from :
(a) 1st January, 1986
(b) 1st April, 1987
(c) 1st July, 1987
(d) 1st July, 1986

45. Contract of Indemnity is :

(a) Void
(b) Voidable
(c) Contingent
(d) Wagering

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46. The section of bailment contract is :
(a) 142
(b) 145
(c) 140
(d) None of these

47. Wagering agreement in the State of Delhi is :

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

48. Which of the following cases relates to general offer ?

(a) Chinnayya Vs. Rammayya
(b) Lalman Shukla Vs. Gauri Dutta
(c) Mohari Bibi Vs. Dharma Das Ghosh
(d) Khwaja Ahmad Vs. Hussaini Begam

49. A contract without free consent is :

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

50. The effects of monopolistic trade practices include :

(a) Unreasonable level of prices
(b) Prevention of competition
(c) Reduced competition
(d) All of the above

51. Fraud does not include :

(a) Active concealment of facts
(b) Any breach of duty without intent to deceive
(c) Promise made without intention of performing
(d) Any act fitted to deceive

52. Main audit technique is :

(a) Vouching
(b) Confirmation
(c) Testing
(d) All of the above

53. In Derry Vs. Peek case (1889), it was decided that:

(a) Auditor is responsible for delay in submitting report
(b) Auditor is liable to third party for negligence
(c) Auditor is not liable to third party for negligence
(d) Auditor is not responsible for fraud also

54. Which type of audit is conducted throughout the year?

(a) Annual Audit
(b) Continuous Audit
(c) Partial Audit
(d) Government Audit

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55. Essential for audit of an educational institute is:
(a) Details of receipt
(b) Details of payment
(c) Details of assets and liabilities
(d) All of the above

56. Which one of the following is correct?

(a) Auditing is the backbone of vouching
(b) Vouching is the backbone of auditing
(c) Vouching is the backbone of accounting
(d) All of the above

57. The liability of assistants' negligence in audit is:

(a) Auditor's liability
(b) Assistants' liability
(c) Employer's liability
(d) Government's liability

58. Under which section an auditor is appointed in a company?

(a) 224
(b) 228
(c) 230
(d) 251

59. Company Secretary is :

(a) Manager of the company
(b) Customer of the company
(c) Shareholder of the company
(d) Employee of the company

60. Internal auditor is a/an :

(a) Representative of Central Government
(b) Independent professional
(c) Representative of shareholders
(d) Employee of the company

61. The statutory auditor is duty bound to :

(a) Verify physically the value of stock in hand at the close of the year
(b) Review the managerial processes and procedures
(c) Prepare the final accounts of the company in accordance with the provisions of
Company Law.
(d) Submit a report to the members of the company

62. Who of the following did not develop the measurement of skewness?
(a) Croxton
(b) Karl Pearson
(c) Bowley
(d) Kalley

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63. A company secretary is appointed by :
(a) The Government
(b) The managing Director
(c) The Board of Directors
(d)The members of the company at the Annual General Meeting

64. "Dispersion is the measure of the variation of the items," is stated by :

(a) Bowley
(b) Connor
(c) Brooks and Dick
(d) Spiegel

65. Quartile deviation is :

66. X Ltd. issued 1000 equity shares of a face value of Rs. 10 at the rate of Rs.
11 per share. The whole amount is received in one instalment. The correct entry
will be :

(a) Bank A/c Dr 11,000

To Equity Share Application A/c 11,000
(b) Bank A/c Dr 11,000
To Equity Share Capital A/c 10,000
To Share Premium A/c 1,000
(c) Bank A/c Dr 11,000
To Share Allotment A/c 11,000
(d) None of the above

67. The formula for finding index number by simple aggregative method is :

68. Operating cost method is used in :

(a) Construction Industry
(b) Cloth Industry
(c) Transport Industry
(d) All of the above

69. Forfeited shares can be issued by a company by way of passing :

(a) An ordinary resolution at the general meeting
(b) A special resolution at the general meeting
(c) A Board of Directors' resolution
(d) A resolution by debenture-holders

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70. In which year Securities and Exchange Board of India (SEBI) became an
autonomous body?
(a) 1988
(b) 1992
(c) 1956
(d) 1989

71. The upper limit of class intervals is considered for calculating the :
(a) 'Less than' cumulative frequency
(b) 'More than' cumulative frequency
(c) Relative frequency
(d) Static frequency

72. Honey is related with :

(a) Hallmark
(b) I.S.I.
(c) Agmark
(d) Amul

73. Programme 'Jago Grahak Jago' is concerned with :

(a) Ministry of Corporate Affairs
(b) Ministry Consumer Affairs
(c) District Consumer Forum
(d) National Consumer Commission

74. The most unstable measure of central tendency is :

(a) Average Mean
(b) Median
(c) Mode
(d) Harmonic Mean

75. The arithmetic mean of the observations 10, 7, 27,36,45 is :

(a) 18
(b) 26
(c) 36
(d) None of these

76. The best average in the construction of index number is :

(a) Median
(b) Geometric mean
(c) Mode
(d) Arithmetic mean

77. Questionnaire deals with one of the following :

(a) Secondary data
(b) Primary data
(c) Costly method
(d) More accurate

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78. "Statistics may rightly be called the science of averages." This definition was
given by
(a) Bowley
(b) Boddington
(c) Secrist
(d) Seligman

79. Mean wage earning of workers of an organisation is Rs. 29.47 and total wages
paid is Rs. 560. The number of workers in the organisation will be :
(a) 20
(b) 19
(c) 21
(d) 22

80. The mean of 15 numbers is 15. If the two numbers 16 and 14 are excluded,
then the mean of the remaining numbers will be :
(a) 15
(b) 10
(c) 25
(d) 12

81. If N = 10, 60, = 1000, then standard deviation will be:

(a) 8
(b) 12
(c) 6
(d) 100

82. The correlation between two variables is high degree, if:

(a) r is more than 0.5 but less than 0.75
(b) r is less than 0.5
(c) r is more than 0.75 but less than 1
(d) r=1

83. Fixed base index numbers and chain index are:

(a) Same
(b) Different
(c) Always 100
(d) Always changing

84. As per Income Tax Act, the heads of income are :

(a) 4
(b) 3
(c) 6
(d) None of these

85. The standard deviation of a set of 50 items is 8.The standard deviation if each
item is multiplied by 2, will be :
(a) 4
(b) 8
(c) 16
(d) 32

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86. The coefficient of concurrent deviation gives correlation coefficient which
varies between :
(a) -1 and 0
(b) -1 and +1
(c) 0 and 1
(d) None of these

87. 80EE is applicable with one of the following:

(a) Purchase of luxury car
(b) Acquisition of business firm
(c) Acquisition of a residential house property
(d) Repairs and maintenance of house property

88. Taxable income for a resident in India is :

(a) Income received in India
(b) Income accrued in India
(c) Income received outside India
(d) All of the above

89. City Compensatory Allowances are :

(a) Fully taxable
(b) Partly taxable
(c) Fully exempt
(d) Not even included in income

90. Section 80C covers the following except:

(a) LIC policies
(b) Provident Funds
(c) Repayment of housing loans
(d) Repayment of personal loans

91. Principle of Pareto distribution deals with :

(a) Cost reduction
(b) ABC analysis
(c) Cost control
(d) Cost effectiveness

92. Composite rent includes the rent received from following assets except:
(a) Fixed assets
(b) Power backup
(c) Lifts
(d) Cash box

93. The following factor is an avoidable cause for labour turnover:

(a) Lower wages
(b) Resignation
(c) Retirement
(d) Workers' moving nature

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94. Which of the following items should be added to costing profit to arrive at
financial profit?
(a) Income tax paid
(b) Interest receivable
(c) Under-absorption of office overheads
(d) Interest on debentures

95. The break-even chart signifies the relationship between :

(a) Cost and Volume of sales
(b) Cost and volume of profit
(c) Cost and volume of production
(d) All of the above

96. In statement of cost, realisable value of scrap is deducted from :

(a) Works cost
(b) Cost of production
(c) Total cost
(d) Prime cost

97. If sales is Rs. 32,000, variable cost is Rs. 24,000, then profit-volume ratio
will be :
(a) 50%
(b) 20%
(c) 32%
(d) None of these

98.The 'Margin of Safety' is equal to :

(a) Fixed cost + Profit
(b) Fixed cost + Contribution margin
(c) Sales revenue-Sales revenue at break-even point
(d) Sales revenue-Variable costs

99. Time-reversal test is satisfied when :

100. How many minimum days before a notice is served to the members for
calling a statutory meeting of the company?
(a) Before 7 days
(b) Before 14 days
(c) Before 21 days
(d) Before 30 days

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