SSC CGL Tier-2 14th September 2018 AAO by Cracku

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SSC CGL Tier-2 14th September 2018 AAO
SSC CGL Tier-2 AAO 14th September 2018 Finance and Accounts
1. A Trial Balance may be prepared according to Totals Method and _____ Method.
A Deficit
B Average
C Surplus
D Balance
Answer: D
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2. ______ appears on the credit side of Manufacturing Account.
A Purchase of Raw materials
B Sale of By-product
C Factory Rent
D Sale of Fixed Asset
Answer: B
3. According to the ____ concept of accounting, the life of the business is divided into appropriate segments for studying the
results shown by the business after each segment.
A Cost
B Dual Aspect
C Accounting Period
D Realization
Answer: C
4. On account of ____ convention, the inventory is valued ‘at cost or market price whichever is less’.
A Consistency
B Conservatism
C Full Disclosure
D Materiality
Answer: B
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5. If the net sales are Rs.35,000, Net Purchases Rs.25,000 and the Closing Stock is Rs.5,000, what will be the amount of Gross
Profit?
A Rs.15,000
B Rs.25,000
C Rs.55,000
D Rs.5,000
Answer: A
6. Under ____ method of Inventory valuation, the issues of materials are made at the price of materials or goods which have been
ordered but not yet received.
A Last in First Out
B First in First Out
C Highest in First Out
D Next in First Out
Answer: D
7. A businessman can find out what his business owns and what it owes from ______.
A Profit & Loss A/c
B Balance Sheet
C Ledger
D Trading A/c
Answer: B
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8. The maker of a Bill Of Exchange is called the _____.
A Payer
B Payee
C Drawee
D Drawer
Answer: D
9. _____ system of depreciation is followed in case of those assets which are of small values or where the life of the asset cannot
be ascertained with certainty.
A Insurance policy
B Inventory

Annuity
C
D Sinking fund
Answer: B
10. If a machine (having a scrap value of Rs.1,000) is purchased for Rs.10,000 and it has an effective life of 10 years of 1000 hours
each, what will be the amount of depreciation per hour?
A Rs.2.00
B Rs.1.50
C Re.1.00
D Re.0.90
Answer: D
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11. The ____ concept of accounting presumes that an enterprise will continue in operation long enough to charge against income,
the cost of fixed assets over their useful lives, to amortize over appropriate period other costs which have been deferred under
the actual or matching concept, to pay liabilities when they become due and to meet the contractual commitments.
A Separate Entity
B cost
C Going Concern
D Money Measurement
Answer: C
12. The ______ of a Non-Profit Organisation gives a list of revenue receipts (for past, current and future periods) as well as capital
receipts.
A Profit & Loss Account
B Receipt and Payment Account
C Income & Expenditure Account
D Profit & Loss Appropriation Account
Answer: B
13. If the two sides of the Trial Balance tally, it is an indication that ____.
A The books of account are completely accurate.
B The books of account are arithmetically accurate.
C The business has a sound financial position.
D The business has suffered a loss.
Answer: B

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14. In case of a Bill of Exchange, ‘Legal Due Date’ is a date which is arrived after adding three days of grace in the _____.
A Nominal due date
B Date of bill
C Date of acceptance
D Period of bill
Answer: A
15. Self -balancing entries will only be made for those transactions which affect ____.
A Three ledgers
B One ledger
C Four ledgers
D Two ledgers
Answer: D
16. Which one of the following is a revenue expenditure?
A Spent Rs.5000 on overhauling of a car which was purchased second hand.
B Rs.1000 spent on painting the factory.
C Loss suffered on sale of old furniture Rs.500.
D Cost of advertising Rs.10,00,000 for the purpose of introducing a new product.
Answer: B
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17. Kohler defines Single Entry System as , “A System of book-keeping in which as a rule only records of _____ and of personal
accounts are maintained”.
A Fixed Assets
B Cash
C Goodwill
D Stock
Answer: B
18. Recording of business transactions are done in a chronological manner in _____.
A Journal
B Trial Balance

Ledger
C
D Balance Sheet
Answer: A
19. “Debit all Expenses and Losses, Credit all Gains and Income” is the principle to record journal entry for______ Accounts.
A Real
B Personal
C Artificial
D Nominal
Answer: D
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20. A trade mark is an example of _____.
A Current assets
B Intangible assets
C Fixed assets
D Liquid assets
Answer: B
21. What will be the amount of credit purchases, if the opening balance of creditors is Rs.7,600; cash paid to creditors Rs.20,000;
discount allowed by them Rs.500; Returns Outward are Rs.2,400; Bills payable accepted Rs.4,600 and the closing balance of
creditors is Rs.9,500?
A Rs.9,500
B Rs.29,400
C Rs.24,900
D Rs.7,600
Answer: B
22. _____ is / are charged to the Profit & Loss Account.
A Stock
B Trade expenses
C Import Duty
D Royalty
Answer: B
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23. A club received Rs. 40,000 as subscriptions during the year 2018-19 of which Rs.6,000 relate to year 2017-18 and Rs.4,000 to
2019-20, and at the end of the year 2018-19 Rs.12,000 are still receivable. What will be the income from subscriptions for the
year 2018-19?
A Rs.24,000
B Rs.42,000
C Rs.21,000
D Rs.12,000
Answer: B
24. When a number of transactions on the same date or relating to one particular account/nature are recorded by means of a single
journal entry, such an entry is called as ____.
A Contra Entry
B Compound Journal Entry
C Rectification Entry
D Adjustment Entry
Answer: B
25. If the account of Mr.Jay was debited by Rs.495 instead of being credited by Rs.459, the rectification will be done by_____.
A Crediting his account by Rs.594
B Debiting his account by Rs.954
C Crediting his account by Rs.954
D Debiting his account by Rs.594
Answer: C
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26. The technique of finding out the net balance of a ledger account, after considering the totals of both debit and credit sides, is
known as _____.
A Rectification of an Account
B Comparison of an Account
C Balancing of an Account
D Reconciliation of an Account
Answer: C
27. _______is historical in nature and reflects the past position of business organization.
A Computerised Accounting
B Management Accounting

C Inflation Accounting
D Financial Accounting
Answer: D
28. Which one of the following is a limitation of Financial Accounting?
A It is based on certain accounting principles
B It records qualitative information
C It records only monetary items
D It lacks double entry system
Answer: C
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29. In case of a Partnership Firm, a _____ is prepared to show the distribution of profits among different partners.
A Profit & Loss A/c
B Partner’s Capital A/c
C Drawings A/c
D Profit & Loss Appropriation A/c
Answer: D
30. The funds raised by Non-Profit Organisations are credited to capital fund or ______.
A Special Revenue Fund
B Reserve Fund
C General Fund
D Debt Service Fund
Answer: C
31. In periods of rising prices, ____ method of inventory valuation will result in production being relatively undercharged.
A First in First Out
B Highest in First Out
C Last in First Out
D Next in First Out
Answer: A
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32. The convention of conservatism has become a target of serious criticism on the ground that it goes against the convention of
____.
A Materiality
B Dual Aspect
C Full Disclosure
D Consistency
Answer: C
33. Wages paid for erection of a new plant or machinery are taken as _____.
A Revenue Expenditure
B Capital Expenditure
C Deferred Capital Expenditure
D Deferred Revenue Expenditure
Answer: B
34. The original cost of an asset is Rs.1,00,000 with an estimated scrap value of Rs.16,000 at the end of its useful life of 5 years.
The depreciation on the asset for its whole life is Rs.84,000, what will be the amount to be charged to the Profit & Loss A/c, if
the Sinking Fund table shows that Re.0.180975 if invested yearly @5 % p.a. produces Re.1 at the end of 5 years?
A Rs.1,765
B Rs.15,202
C Rs.18,098
D Rs.2,896
Answer: B
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35. Errors committed because of failure to make a proper distinction between revenue and capital items are called ____.
A Errors of Commission
B Errors of Omission
C Errors of Principle
D Compensating Errors
Answer: C
36. If a firm purchases 100 units of goods on 1st Jan.@ Rs.4 p.u; 200 units on 8th Jan. @ Rs.5 p.u., 200 units on 24th Jan.@ Rs.6
p.u., and sold 200 units on 31st Jan, What will be the value of inventory sold on 31st Jan. according to the Weighted Price
method when the firm follows Periodic Inventory System?
A Rs.1202

B Rs.1040
C Rs.2000
D Rs.1400
Answer: B
37. The objective of preparing a Bank Reconciliation Statement is to _____.
A Rectify the errors of pass book
B Idenify difference between balance of bank statement and the cash book
C Rectify the errors of trial balance
D Rectify the errors of cash book
Answer: B
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38. If the balance as per Cash Book is Rs.5,800; cheques amounting to Rs.2,000 are issued but not yet presented; cheques of
Rs.1,500 sent for collection, but not yet collected, and amount of Rs.200 is wrongly debited by the bank, what will be the
balance as per Pass Book?
A Rs.1,700
B Rs.7,800
C Rs.6,100
D Rs.2,800
Answer: C
39. According to Section 5 of the Negotiable Instruments Act, 1881, a _____ is defined as, an instrument in writing containing an
unconditional order, signed by the maker, directing a certain person, to pay a certain sum of money only to, or to the order of,
certain person or to the bearer of the instrument.
A Letter of Credit
B Cheque
C Demand Draft
D Bill of Exchange
Answer: D
40. Which one of the following entry will be passed for ‘credit sales’ under self balancing ledger system?
A Debtors Ledger Adjustment A/c ----Dr. To General Ledger Adjustment A/c
B Cash A/c ---- Dr. To Individual Customer A/c
C General Ledger Adjustment A/c ---- Dr. To Debtors Ledger Adjustment A/c
D Individual Customer A/c ---- Dr. To Sales A/c

Answer: A
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41. The Central Government has amalgamated three Regional Rural Banks - Punjab Gramin Bank, Malwa Gramin Bank and Sutlej
Gramin Bank into a single RRB with effect from.
A 31st December 2018
B 1st January 2019
C 1st July 2019
D 1st January 2018
Answer: B

42. Find out the best possible option which describes the formula to obtain Gross National Product.
A GDP - Trade Balances abroad
B GDP + Trade Balances Abroad + Interest of External Loans + Private Remittances
(GDP + Trade Balances Abroad + Interest of External Loans + Private Remittances) - Abroad individual
C
Consumptions
D GDP + Trade balances Abroad
Answer: B
43. Which of the following factor has a direct relationship with supply, other things remaining constant?
A Material Quality
B Substitute material
C Material abundance
D Material price
Answer: D
44. The quantity of demand by virtue of which it changes (increases or decreases) when ___changes (decreases or increases) is
called Elasticity of Demand.
A Marginal utility
B Output
C Desire
D Price
Answer: D

45. Which among the following is the main measuring scale to map the economic growth of a country?
A Gross National Purchases
B Gross Domestic Product
C Human Development Index
D Gross National Happiness
Answer: B
46. Indifference curve theory states that:
A Consumer spending pattern changes with the change in his income
B Consumers form preferences for some combination of products over others
C Purchasing power is not the determinant of buying
D Purchasing power is the real determinant of buying
Answer: B
47. _____ disequilibrium occur because of long-run and deep seated changes in an economy as it moves from one stage of growth
to another.
A Cyclical
B Secular
C Structural
D Non Cyclical
Answer: B

48. The demand curve normally has a ____ slope.
A Positive
B Zero
C Undefined
D Negative
Answer: D
49. Which one of the following is not a type of Economic Infrastructure?
A Housing
B Transport

C Irrigation
D Communication
Answer: A
50. As per the 2018-19 data published by the Ministry of Statistics & Program Implementation, the share of agriculture & allied
sector is _____ % to the Gross Value Added in India.
A 29.73
B 54.4
C 15.87
D 27.03
Answer: C

51. Which one of the following is an element of capital account in the Balance of Payments?
A Income from foreign tourists
B Foreign direct investments
C Royalties from patents
D Export income
Answer: B
52. The laws of _____ describe the technically possible ways of increasing the level of output.
A Production
B Demand
C Supply
D Return to scale
Answer: A
53. The Fiscal Responsibility and Budget Management (FRBM) Act, 2003 was enacted by the Parliament in ___.
A June 2003
B July 2003
C August 2003
D April 2003
Answer: C

54. Supply is said to be _____when a given percentage change in price leads to a larger change in quantity supplied.
A Unit elastic
B Inelastic
C Elastic
D Perfectly Elastic
Answer: C
55. The government of India has targated revenue deficit for the financial year 2019-20 to be ___ % of GDP.
A 3.3
B 2.5
C 3.2
D 2.3
Answer: D
56. The MRTP Act was repealed and replaced by the ___, with effect from September 1, 2009
A Consumer Protection (Amendment) Act
B Industries (Development and Regulation) Act,
C Competition Act
D Limitation Act
Answer: C

57. Goods whose demand varies inversely with income are called ____ goods.
A Inferior
B Superior
C Normal
D Necessary
Answer: A
58. The Central public sector enterprises (CPSEs) viz. Indian Oil Corporation and Steel Authority of India Ltd. have the status of
____.
A Navratnas
B Ratnas
C Maharatnas

D Miniratnas
Answer: C
59. According to ____ method of measuring national income, the national income consists of measuring the output of all producers
and to deduct from this total the intermediate purchases.
A Product
B Income
C Marginal cost
D Expenditure
Answer: A

60. An important financial reform has been the reduction in Statutory Liquidity Ratio (SLR)which was as high as 39 per cent of
deposits with the banks has been reduced to ____ per cent as on August, 2019
A 19.25
B 15.5
C 18.75
D 25
Answer: C
61. In the short run, the monopolist should make sure that the price should not go below _____.
A Average Production Cost
B Average Variable Cost
C Average Total Cost
D Average Fixed Cost
Answer: B
62. Which one of the following is a primary function of commercial banks?
A Issuing letters of credit
B Supplying business information
C Discounting of bills
D Accepting deposits and providing loans
Answer: D

63. Functions of Comptroller and Auditor-General in the Case of Grants or Loans given to other Authorities or Bodies are specified
in Section ____ of The Comptroller and Auditor General's (Duties, Powers and Conditions of Service) Amendment ACT, 1971.
A 12
B 10
C 16
D 15
Answer: D
64. The Interim Budget 2019-20 has pegged the fiscal deficit for the year 2019-20 at ___% of GDP.
A 3.4
B 1.6
C 2.3
D 4.1
Answer: A
65. The ______is/are constituted by the President under article 280 of the Constitution, mainly to give its recommendations on
distribution of tax revenues between the Union and the States and amongst the States themselves.
A Panchayats
B Municipalities
C Finance Commission
D Public Service Commission
Answer: C

66. If the proportionate increase in the output is less than proportionate increase in the inputs it is said to be _____returns.
A Increasing
B Variable
C Diminishing
D Constant
Answer: C
67. The problem of choice arises on account of the pressure of three interrelated facts, viz, human wants are unlimited, means
required to satisfy these wants are limited and ______.
A All means are freely available.
B Means are incapable of being put to alternative uses.

C Means are capable of being put to alternative uses.
D All means are perishable.
Answer: C
68. Because of price rigidity, firms under oligopoly face a ____demand curve.
A Negative sloping
B Parallel
C Kinked
D Uniformly Elastic
Answer: C

69. "What to produce?" is a basic problem faced by an economy under which of the following central problem?
A Creation of resources
B Allocation of resources
C Growth of resources
D Efficient use of resources
Answer: B
70. For the first time in the history of Indian planning there was an attempt to move beyond empowerment and recognize women as
agents of sustained socio-economic growth and change, in the ____ Five Year Plan.
A Eleventh
B Fifth
C Seventh
D Tenth
Answer: A
71. Which one of the following is a function of Finance Commission of India?
A Monitor and investigate adherence to applicable procedures in the public service
B Investigating complaints on any finance related issue.
Division/Distribution of the net tax proceeds between the Centre and the states, and the allocation of the same
C
between states.
D Overseeing workforce and personnel matters in the State services
Answer: C

72. In Monopoly Market equilibrium, the trader gets________ in the long run (where all factors happen to be variable).
A Super Normal Profit
B Average Profits
C Marginal Profits
D Normal Profits
Answer: A
73. The law of ___ states that, other things remaining the same, the quantity supplied of a commodity is directly or positively
related to its price.
A Demand
B Diminishing utility
C Supply
D Diminishing returns
Answer: C
74. Article ____ of the Constitutional Provisions of Comptroller & Auditor General of India relates to Audit Reports.
A 150
B 151
C 149
D 148
Answer: B

75. Macro economics is not a study of _____
A unemployment
B inflation
C national income
D consumer surplus
Answer: D
76. The Long-Run Analysis of Production is done under which one of the following law of Production?
A Law of Averages
B Law of Returns to Scale
C Law of demand

D Law of Segregation
Answer: B
77. ______unemployment attributable to the time required to match production activities with qualified resources.
A Voluntary
B Frictional
C Disguised
D Seasonal
Answer: B

78. The ____ is vested with the responsibility of conducting monetary policy of India.
A Securities Exchange Board of India(SEBI)
B Reserve Bank of India (RBI)
C Industrial Development Bank of India (IDBI)
D State Bank of India (SBI)
Answer: B
79. _____have an income elasticity of demand of between 0 and +1.
A Inferior goods
B Normal goods
C Giffen goods
D Luxury goods
Answer: B
80. In ____, India has signed an open sky agreement with Australia allowing airlines on either side to offer unlimited seats to six
Indian metro cities and various Australian cities.
A June 2018
B April 2019
C July 2018
D June 2008
Answer: A

81. ______refers to the willingness and ability of consumers to purchase a given quantity of a good or service at a given point in
time or over a period in time.

A Demand
B Estimation
C Consumption
D Desire
Answer: A
82. ______ is the portal which assists the corporate sectors in India with regard to the filing of various compliances in a seamless
and transparent manner.
A Company Portal
B MCA 21
C ROC India Portal
D MCA 11
Answer: B
83. The classic economic resources i.e. land, labour and capital are called as _____.
A Factors of supply
B Factors of production
C Factors of demand
D Factors of consumption
Answer: B

84. In India, the first Metro Rail service was inaugurated on 24th October 1984 in ____.
A Bangalore
B Kolkata
C Hyderabad
D Mumbai
Answer: B
85. ___ has defined Economics as the science of wealth.
A Lionel Robbins
B Alfred Marshall
C Paul Samuelson
D Adam smith

Answer: D
86. When even a negligible fall in the price of the commodity leads to an infinite extension in the demand for it, it is called ____.
A Less elastic demand
B Perfectly Inelastic demand
C Infinite elastic demand.
D Unit elastic demand
Answer: C

87. According to the economic survey published in July 2019 by Govt. of India, GDP is expected to grow at ___% in 2019-20 due to
growth of investment & consumption Service exports
A 6
B 8
C 7
D 5
Answer: C
88. According to ____ theory, a consumer will continue to buy such products that will deliver him the most utility or maximum
satisfaction at relative prices.
A Indifference
B Income and savings
C Marginal Utility
D Rising income
Answer: C
89. In 2005, a expert group was constituted by the Planning Commission to review methodology for poverty estimation. It was
chaired by_____.
A Rangarajan
B Suresh Tendulkar
C D.T. Lakdawala
D V. M. Dandekar
Answer: B

90. While measuring the National Income, in order to avoid double counting of value of goods in computing GDP,the Final Goods
Approach and the ____ is used.
A Final Sales
B Value Added Method
C Final Production
D Final Purchases
Answer: B
91. The decades ____are referred to as the period of steady population growth in India.
A 1921-1951
B 1901-1921
C post 1981
D 1951-1981
Answer: A
92. ________ is a kind of unemployment in which there are people who are visibly employed but are actually unemployed or not
utilizing their proper skills to its maximum level.
A Disguised Unemployment
B Seasonal Unemployment
C Structural Unemployment
D Voluntary Unemployment
Answer: C

93. _____ products have a zero cross elasticity.
A Unrelated
B Complementary
C Substitute
D Rival
Answer: A
94. The ____ is a hypothetical representation of the amount of two different goods that can be obtained by shifting resources from
the production of one, to the production of the other.
A Consumption possibility curve
B Gestation period

C Product life cycle
D Production possibility curve
Answer: D
95. The ___ define national income as the value created in the sphere of material product alone.
A Maoists
B Capitalists
C Marxists
D Communists
Answer: C

96. The _____Oversees the Foreign Exchange Management Act, 1999.
A Exim Bank
B Reserve Bank of India
C Securities Exchange Board of India
D State Bank of India
Answer: B
97. _____ may be defined as a market situation in which market price is largely determined by the forces of total demand and total
supply in the market.
A Monopoly
B Perfect Competition
C Oligopoly
D Monopolistic Competition
Answer: B
98. The curve of production possibility is concave in nature because of _____.
A Positive opportunity costs
B Marginal rate of transformation
C Negative opportunity cost
D Average rate of transformation
Answer: B

99. Under _____ the cross elasticity of demand between the product of the firm and that of other commodity in the market is zero.
A Oligopoly
B Monopoly
C Duopoly
D Perfect Competition
Answer: B
100. _____was the first payments bank to start its commercial operation in November 2016 on a pilot basis.
A Paytm Payments Bank
B India Post Payments Bank
C Fino Payments Bank
D Airtel Payments Bank
Answer: D


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A Purchase of Raw materials

D Sale of Fixed Asset

SSC CGL Previous Papers (DOWNLOAD PDF)

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A Last in First Out

B First in First Out

C Highest in First Out

D Next in First Out

A Profit & Loss A/c

SSC CGL Tier-2 Previous Papers PDF

Downloaded from cracku.in

1500 + Free Must Solved SSC Questions (With Solutions)

A Profit & Loss Account

B Receipt and Payment Account

C Income & Expenditure Account

D Profit & Loss Appropriation Account

A The books of account are completely accurate.

B The books of account are arithmetically accurate.

C The business has a sound financial position.

D The business has suffered a loss.

Downloaded from cracku.in

A Nominal due date

16. Which one of the following is a revenue expenditure?

A Spent Rs.5000 on overhauling of a car which was purchased second hand.

B Rs.1000 spent on painting the factory.

C Loss suffered on sale of old furniture Rs.500.

D Cost of advertising Rs.10,00,000 for the purpose of introducing a new product.

SSC Free Preparation App

18. Recording of business transactions are done in a chronological manner in _____.

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SSC CGL Important Questions PDF

22. _____ is / are charged to the Profit & Loss Account.

SSC CHSL Prevoius Papers (DOWNLOAD PDF)

B Compound Journal Entry

A Crediting his account by Rs.594

B Debiting his account by Rs.954

C Crediting his account by Rs.954

D Debiting his account by Rs.594

General Science Notes for SSC CGL

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28. Which one of the following is a limitation of Financial Accounting?

A It is based on certain accounting principles

B It records qualitative information

C It records only monetary items

D It lacks double entry system

Free SSC Study Material (18,000 Solved Questions)

A Profit & Loss A/c

B Partner’s Capital A/c

D Profit & Loss Appropriation A/c

A Special Revenue Fund

D Debt Service Fund

A First in First Out

B Highest in First Out

C Last in First Out

D Next in First Out

SSC CHSL Free Mock Test