Meghalaya Police Service Preliminary Examination 2022 - Multiple Subjects — question paper

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Meghalaya Police Service Preliminary Examination 2022 - Multiple Subjects

Paper #3169 · 17-12-2022 · Multiple subjects · 514 reviewed questions · Showing 161–200 of 514

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Accuracy note: This is a reviewed structured rendering of an official previous-year paper and may cover only part of it. Where available, explanatory notes describe unresolved source or answer issues without supplying a scoring answer. Official examination authority notices remain final.

A fire destroys stock worth Rs 50,000. The insurer admits a claim of Rs 35,000. What uninsured loss must X & Co. bear?
1. Insurance claim receivable of Rs 35,000
2. Uninsured fire loss of Rs 15,000
3. Fire loss of Rs 50,000 with no insurance recovery
4. No loss, because the insurer covers the full amount
At year-end, commission on net profits has been earned by the manager but remains unpaid. Which journal entry records the commission?
1. Debit Commission Payable Account and credit Commission Expense Account
2. Debit Commission Expense Account and credit Commission Payable Account
3. Debit Profit and Loss Account and credit Commission Receivable Account
4. Debit Manager’s Personal Account and credit Cash Account
A, B and C share profits 4:3:2. On B's retirement, A and C agree to share 5:3. What is their gaining ratio?
1. 11:5
2. 5:8
3. 13:11
4. 11:9
XYZ Ltd. has a debt-to-equity ratio of 1:5, while the industry average is 1:3. Assuming the ratios are calculated on the same basis, what does XYZ’s lower ratio generally indicate?
1. Lower financial leverage and generally lower financial risk than the industry average
2. Higher financial leverage and generally higher financial risk than the industry average
3. The same financial leverage and risk as the industry average
4. Higher liquidity than the industry average
Which measure states the profit attributable to equity shareholders on a per-share basis?
1. Return on assets
2. Earnings per share
3. Net profit ratio
4. Return on investment
Which statement about financial ratios is generally valid?
1. A higher receivables turnover is always undesirable
2. The interest coverage ratio is calculated using profit after tax and depends on the tax rate
3. An increase in the net profit ratio necessarily means that sales have increased
4. A lower debt-to-equity ratio generally indicates lower financial risk, all else equal
A firm has sales of Rs 5,00,000, gross profit of Rs 2,00,000 and total expenses of Rs 1,00,000, with no other income or expenses. What is its net profit ratio?
1. 50%
2. 20%
3. 10%
4. 40%
In financial management, what does EVA stand for?
1. Extra Value Added
2. Economic Value Added
3. Expected Value Added
4. Engineering Value Added
A cash budget is primarily prepared as part of which type of planning?
1. Profit planning
2. Short-term financial planning
3. Production planning
4. Sales planning
In 2019, sales were Rs 6,00,000 and cost of goods sold was Rs 4,30,000. Assuming cost of goods sold remains the same percentage of sales, if 2020 sales are expected to rise by 10%, what is the projected cost of goods sold for 2020?
1. Rs 4,30,000
2. Rs 4,90,000
3. Rs 4,73,000
4. Rs 4,40,000
Under the percentage-of-sales method, if an operating expense is expected to vary with sales, on what basis is it projected?
1. Percentage of profit before tax
2. Percentage of cost of goods sold
3. Percentage of gross profit
4. Percentage of sales
Which decision is generally part of working-capital management rather than capital budgeting?
1. Acquisition of a long-term asset
2. Merger with another business
3. Replacement of existing plant or equipment
4. Determining inventory levels
A firm may accept every project that meets its required return because accepting one project does not affect another and capital is not rationed. How are these projects classified?
1. Independent projects
2. Mutually exclusive projects
3. Mutually dependent projects
4. Contingent projects
Which accounting assumption treats an entity as continuing its operations for the foreseeable future, rather than preparing to liquidate?
1. Historical cost
2. Monetary unit
3. Business entity
4. Going concern
Which document sets out the planned audit procedures to be performed to achieve the audit objectives?
1. Audit planning
2. Audit program
3. Audit assistant
4. Audit strategy
Which type of audit evaluates whether an organisation has followed applicable laws, regulations and prescribed requirements?
1. Financial audit
2. Compliance audit
3. Operational audit
4. Performance audit
Which communication to the auditee formally requests the books, records and supporting documents needed for an audit?
1. Audit plan
2. Audit requisition or request letter
3. Audit programme
4. Audit report
After planning and initial engagement arrangements, which audit stage involves performing procedures and gathering evidence?
1. Audit fieldwork
2. Audit communication
3. Initial engagement meeting
4. Drafting the audit report
What process between the auditor and auditee helps resolve audit findings and supports follow-up into the next audit cycle?
1. Issuing the final audit report
2. Ongoing two-way feedback and follow-up
3. Compiling a list of unresolved issues only
4. Collecting management responses only
Audit procedures used to determine whether transactions were recorded in the correct reporting period constitute what testing?
1. Cut-off testing
2. Occurrence testing
3. Completeness testing
4. Classification testing
Which audit documentation records the procedures performed, evidence obtained and conclusions reached, supporting the auditor’s opinion?
1. Audit engagement letter
2. Client transaction records
3. Auditor’s working papers
4. Management representation letter
Which type of audit is normally planned and scheduled by an organisation’s own audit function?
1. Internal audit
2. Management audit
3. External audit
4. Administrative audit
When an auditor uses test checking to examine a sample of transactions, what does this replace?
1. Detailed examination of every transaction
2. Analytical review of financial trends
3. Physical inspection of selected assets
4. Review of internal-control design
In accounting, what is the original documentary evidence supporting a transaction called, as distinct from a copy of that document?
1. Primary voucher
2. Secondary voucher
3. Contra voucher
4. Memorandum voucher
Which term describes an audit procedure designed to obtain evidence about one or more financial-statement assertions?
1. Audit sampling
2. Audit questionnaire
3. Audit test
4. Audit checklist
In addition to applicable law, what professional standards govern how an auditor plans and performs an audit and reports an opinion on financial statements?
1. Auditing standards
2. Accounting standards
3. Audit committee charter
4. Management representation letter
In a digital audit, which type of software is used to document audit procedures, evidence, findings and test results in place of paper working papers?
1. Accounting transaction-processing software
2. Audit management and documentation software
3. Audit risk-assessment procedures
4. Financial-statement preparation software
Which sampling method gives every possible sample of a fixed size an equal chance of selection?
1. Simple random sampling
2. Systematic sampling
3. Haphazard selection
4. Block selection
An audit that examines costs incurred and controls applied on a specific construction project is what type of audit?
1. Construction-project audit
2. Operational audit
3. Compliance audit
4. Financial-statement audit
For a voluntary audit of a sole proprietorship, who selects and appoints the auditor, where no specific statutory appointment procedure applies?
1. The sole proprietor
2. The company’s shareholders at an annual general meeting
3. The company’s board of directors
4. The Registrar of Companies
An auditor is asked to provide an additional report for a specific purpose beyond the ordinary annual audit. What is this generally called?
1. The normal annual audit report
2. A special audit report
3. An actual audit report
4. A non-corporate entity report
Under section 138 of the Companies Act, 2013, which body decides which other professional may conduct a company’s internal audit, in addition to a chartered accountant or cost accountant?
1. The company’s Board of Directors
2. The shareholders at an annual general meeting
3. The Chief Financial Officer
4. The external statutory auditor
Which business form is not subject to the company-audit provisions of the Companies Act, 2013 merely by its legal form?
1. Sole proprietorship
2. Private limited company
3. Public company
4. Section 8 company
Under section 143(2) of the Companies Act, 2013, to whom must a company’s auditor report on the accounts examined?
1. The tax authorities
2. The members of the company
3. The company’s lenders
4. The general public
A transaction not recorded wholly or partly in the books is what type of error?
1. Error of principle
2. Balancing error
3. Error of omission
4. Error of commission
Sale of a fixed asset gives rise to what kind of receipt?
1. Capital receipt
2. Revenue receipt
3. Capital expenditure
4. Revenue expenditure
An audit conducted after the end of the financial year to examine the complete annual accounts is called what?
1. Interim audit
2. Final audit
3. Continuous audit
4. Concurrent audit
During an audit, what is the primary purpose of examining the cash book and its supporting vouchers?
1. To verify the recording and supporting evidence for cash and bank receipts and payments
2. To assess internal-control design only
3. To establish the value of closing inventory
4. To verify every asset and liability independently
At incorporation, which constitutional documents state a company’s capital clause and set out its internal rules for issuing shares?
1. Underwriting agreement
2. Register of members
3. Memorandum and Articles of Association
4. Debenture trust deed
Who holds ownership interests in a company through its equity share capital?
1. Debenture holders
2. Equity shareholders
3. Debtors
4. Promoters

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