Financial management and tax planning net exam

NET GUIDANCE WORKSHOP
Dr. Jyoti Thakur
PRESENTATION BY:

PAPER PATTERN
Paper Marks Number of Question Duration
I 100 50 questions. All are compulsory 1 Hour (09:30 AM to 10:30 AM) IST
II 200 100 questions. All are compulsory 2 Hours (11:00 AM to 1:00 PM) IST
Paper-I shall consist of 50 objective type compulsory questions each carrying 2
marks.
Paper-II shall consist of 100 objective type compulsory questions each carrying 2
marks which will be based on the subject selected by the candidate.

About NET?
National Educational Testing Bureau of University Grants
Commission (UGC) conducts National Eligibility Test
(NET):
1. To determine eligibility for lectureship &
2. For award of Junior Research Fellowship (JRF)
3. Both
for Indian nationals in order to ensure minimum
standards for the entrants in the
 Teaching profession &
 Research.
3

Upcoming NET Examination Date: 8th July 2018
Online application starting Date: 6th March 2018.
Online Fees Payment last Date: 6th April 2018.
Age Limit for JRF: 30 years

Paper-I : General
{1Hours (09.30 A.M. to 10.30 A.M.)}
1. Reasoning ability,
2. Comprehension,
3. Research Aptitude
4. ICT & Higher Education System
5. General awareness.
 Mark the responses for questions on the Optical Mark
Reader (OMR) sheet.
 Use Blue/ Black ball point pen only.
5

Paper-II : Subject Related
 Compulsory objective type questions of 2 marks each (100X2=200marks).
 Mark the responses for questions on the Optical Mark Reader (OMR) sheet.
 Use Blue/ Black ball point pen only.
 Calculators/ log tables not allowed.
6

Accounting and Finance
 Accounting standards in India
 Inflation accounting
 Human resource accounting
 Responsibility accounting
 Social Accounting
 Money and Capital Market
 Venture capital funds
 Mergers and acquisitions
 Mutual funds
 Lease financing
 Factoring
 Measurement of risk and returns
 Securities and portfolio
 Computer application in accounting and
finance

Accounting Concepts and Conventions
Concepts
Business Entity Concepts
Money Measurement
Concept
Cost Concept
Going Concern Concept.
Dual Asset Concept
Realization Concept
Accrual Concept
Accounting Period
Revenue Match Concept
Conventions:
Consistency
Disclosure
Conservatism
Materiality

Capital and Revenue
Receipts:
Capital
Revenue
Expenditure:
 Capital
 Revenue
 Deferred Revenue Expenditure

Analysis of Financial Statements
Comparative Analysis.
Common size Statements.
Trend Analysis Percentage.

Partnership Accounts
Admission of partner
Retirement of Partner
Death of Partner
Dissolution of Partnership
Interest on Drawings.
Guarantee of Profit.

Advanced Company Accounts
Allotment
Calls on shares
Forfeiture of Shares.
Pro-rata Allotment of shares
Issue of shares at Premium, par and Discount
Debenture and Redemption of Debentures.

Purchase of Business
Purchase Consideration
Net Payment Method
Net Asset Method
Lump-sum Method
 Amalgamation
 Absorption
 External Reconstruction
 Alteration of Share Capital
 Consolidation of Share
 Subdivision of Shares

Financial Analysis
Ratio Analysis:
Liquidity Ratios
Profitability Ratios
Equity Fund Related Ratios
Efficiency Ratios
Returns on Investment Ratios.
 Fund Flow Statements
 Cash Flow Statements

Marginal Costing and Break Even Analysis
Marginal Cost Statement
Sales – Variable Cost = Contribution
P/V Ratio
Break Even Point Sales
Margin of Safety
Required Sales
Contribution – Fixed Cost = Profit

Standard Costing
Material Variances
Labour Variances
Overhead Variances
Sales Variances

Budgetary Control
Fixed Budget
Flexible Budget
Master Budget
Functional Budget
Cash Budget
Zero Based Budgeting

Responsibility Accounting
 Responsibility Centre
Cost Centre
Revenue Centre
Profit Centre
Investment Centre
 Types of Reports
Statutory Report (Section 165)
Auditors Report
Annual Report

Working of Stock Exchange in India
 SEBI
 Rating agencies
 New instruments: GDRs (Global Depository Receipt, ADRs (American
Depository Receipt)
NSE – National Stock Exchange
OTCEI - Over-The-Counter Exchange of India
NASDAQ - National Association of Securities Dealers Automated Quotations
Derivatives and Options
Regulatory Authorities

1. Assertion (A) : Debt - equity ratio indicates the long term solvency of a
company.
Reasoning (R) : It measures the ability of the company to pay off its long term
liabilities.
Select the correct answer from the code given below :
(1) Both (A) and (R) are correct and (R) is the correct reason for (A).
(2) Both (A) and (R) are correct but (R) does not explain (A) correctly.
(3) (A) is correct but (R) is wrong.
(4) (A) is wrong but (R) is correct.

2. Goodwill of a firm of X and Y is valued at ₹ 30,000. It is appearing in
the books at ₹ 12,000. Z is admitted for 1/4 share. What amount he is
supposed to bring for goodwill ?
(1)₹ 3,000
(2)₹ 4,500
(3)₹ 7,500
(4)₹ 10,500

3. A Ltd. issued a prospectus inviting applications for 2,000 shares.
Applications were received for 3,000 shares and pro-rata allotment was
made on the applications of 2,400 shares. If A has been allotted 40
shares, how many shares he must have applied for ?
(1)40
(2)44
(3)48
(4)52

4. Which one of the following receipts is of revenue nature ?
(1) Amount realised from the sale of investments
(2) Dividend received on investment
(3) Amount borrowed from a bank
(4) Compensation received from municipal corporation for the
acquisition of land for the
construction of road.

5. Which one of the following is not correct with reference to standard
costing ?
(1) Standard costing is a system where pre determined costs are used for
control of entire organisation
(2) Standard may be expressed in quantitative and monetary measures
(3) Only adverse variances are investigated intensively
(4) Standard is determined for each element of cost

6. Which one of the following is not correct ?
(1) Margin of Safety = Profit
P/V ratio
(2) P/V Ratio = Change in Contribution × 100
Change in sales
(3) Break-even point in units = Fixed cost
Contribution per unit
(4) Required sales to earn desired profits = Desired profit
P/V ratio

7. Schedule III Part II of the Companies Act, 2013 deals with which one
of the following ?
(1)Format of Balance Sheet
(2)Format of Profit and Loss Account
(3) Format of Trading Account
(4) Format of Cash Flow

8. Which one of the following statements is not true ?
(1) When there is one liquidation and one formation it is known as
external construction
(2) Goodwill or Capital reserve arises only when the amalgamation is in
the nature of merger
(3) Under the pooling of interest method, the transferee company
incorporates the assets and liabilities of the transferor company at book
value
(4) The vendor company transfers preliminary expenses (at the time of
absorption) to equity shareholders’ account

9. Match the items in Column – I with the items in Column – II and indicate the correct
code :
Column – I Column – II
a. Debt-Equity Ratio i. Net Profit before interest and tax
Interest on long term loans
b. Proprietary Ratio ii. Equity share capital + Reserves
Preference share capital + Interest bearing finance
c. Interest coverage ratio iii. Long term debts
Shareholder's Funds
d. Capital gearing ratio iv. Shareholder's Funds
Total Assets
Codes :
a b c d
(1) i ii iii iv
(2) iii iv i ii
(3) iii iv ii i
(4) ii iii iv i

10. Ram and Shyam are partners in a firm with capital of ₹ 4,80,000 and
₹ 3,10,000, respectively. They admitted Ganesh as a partner with 14th
share of profit. Ganesh brings ₹ 3,00,000 as his capital. Ganesh’s share of
goodwill will be
(1)₹ 1,10,000
(2)₹ 27,500
(3) ₹ 17,500
(4) ₹ 70,000

11. Which of the following is a deferred revenue expenditure ?
(1) Legal expenses incurred on the purchase of land.
(2) Expenses on a mega advertisement campaign while launching a new
product.
(3) Expenses incurred on installation of a new machine.
(4) Wages paid for construction of an additional room in the building.

11. Which of the following is a deferred revenue expenditure ?
(1) Legal expenses incurred on the purchase of land.
(2) Expenses on a mega advertisement campaign while launching a new
product
(3) Expenses incurred on installation of a new machine.
(4) Wages paid for construction of an additional room in the building.

12. The amount of depreciation charged to Profit and Loss Account
varies every year under :
(1) Fixed instalment method
(2) Annuity method
(3) Diminishing balance method
(4) Insurance policy method

13. Match the items of List – I with those of List – II and choose the
correct code :
List – I List – II
a. Provision for taxation i. Current Assets
b. Live-stock ii. Unsecured loans
c. Sundry Debtors iii. Fixed Assets
d. Interest accrued on unsecured loans iv. Provisions
Codes :
a b c d
(1) iv iii i ii
(2) iv iii ii i
(3) iii iv ii i
(4) ii i iii iv

14. From the following information, find out the number of units that
must be sold by the firm to earn profit of ` 80,000 per year.
Sales price : ₹ 25 per unit
Variable manufacturing costs – ₹ 12 per unit
Variable selling costs – ₹ 3 per unit
Fixed factory overheads – ₹ 5,00,000
Fixed selling costs – ₹ 3,00,000
(1) 60,000 units
(2) 88,000 units
(3) 98,000 units
(4) 1,00,000 units

15. Which of the following is not a cash inflow ?
(1) Decrease in creditors
(2) Decrease in debtors
(3) Issue of shares
(4) Sale of a fixed asset

16.When a business is purchased, any amount paid in excess of the total
of assets, minus the liabilities taken, is called :
(1)Share Premium
(2)Goodwill
(3)Capital Employed
(4)Working Capital

17. Indicate the correct code as regards the sources of funds for a Funds
Flow Statement from the following :
(a)Increase in working capital
(b)Decrease in working capital
(c)Writing off the intangible/fictitious assets
(d)Issuing equity shares for acquisition of a building for office
(e)Charging depreciation on fixed assets
Codes :
1.(a), (c), (d)
2.(b), (c), (e)
3.(a), (d), (e)
4.(b), (c), (d)

18. Match the items of List - I with those of the List - II and indicate
the correct code for the following :
List – I List - II
(a) Debtors Turnover Ratio (i) Solvency Ratio
(b) Proprietary Ratio (ii) Liquidity Ratio
(c) Operating Ratio (iii) Activity Ratio
(d) Acid Test Ratio (iv) Profitability Ratio
Codes :
(a) (b) (c) (d)
(1) (ii) (iv) (iii) (i)
(2) (iii) (ii) (i) (iv)
(3) (iii) (i) (iv) (ii)
(4)(iv) (iii) (ii) (i)

19. Interest on loan taken for the purchase of fixed assets is a :
1. Revenue Expenditure
2. Capital Expenditure
3. Deferred Revenue Expenditure
4. Capital Loss

20. Dual Aspect Concept results in the following accounting equation :
1. Revenue = Expenses
2. Capital + Profit = Assets + Expenses
3. Capital + Liabilities = Assets
4. Capital + Drawings = Owner’s Equity

21.‘X’ Ltd. has a liquid ratio of 2 : 1. If its stock is ₹ 40,000 and its
current liabilities are of ₹ 1 Lac, its current ratio
will be :
1. 1.4 times
2. 2.4 times
3. 1.2 times
4. 3.4 times

22.‘Comparison of the financial statements of the current year with the
performance of previous years of the same firm’, is known as :
1. Trend Analysis
2. Horizontal Analysis
3. Intra – firm Comparison
4. All of the Above

23. Match the items in Column - 1 with the items in Column - 2 :
Column – 1 Column - 2
(a) Materiality Concept (i) The same accounting method used by a firm from one period
to another
(b) Going Concern Concept (ii) An inappropriate assumption of a firm being bankrupt
(c) Historical Cost Concept (iii) A normal basis used for accounting assets
(d) Consistency Concept (iv) Relates to the importance of an item or event
Codes :
(a) (b) (c) (d)
(1) (iv) (ii) (iii) (i)
(2) (i) (ii) (iii) (iv)
(3) (ii) (iii) (iv) (i)
(4) (iv) (ii) (i) (iii)

Paper II FINANCIAL MANAGEMENT
•Capital Structure,
•Financial & Operating Leverage
•Cost of Capital,
•Capital Budgeting
•Working Capital Management
•Dividend Policy

CAPITAL STRUCTURE
•Factors Determining Capital Structure.
•Principles of Capital Structure
•Theories of Capital Structure.
 Net Income Approach Theory- Durand
 Net operating Income theory- Durand.
 Traditional Approach Theory
 MM Approach

COST OF CAPITAL
•Types of Cost
Component and Composite Cost.
Average and Marginal Cost
Explicit and Implicit Cost
• Importance of Cost.
• Cost of Capital:
 Cost of Debt
 Cost of Equity
 Cost of Preference Shares
 Cost of Retained Earnings

LEVERAGE
•Operating Leverage
Contribution/ EBIT
•Financial Leverage (Trading on Equity)
EBIT/ PBT
•Combined Leverage
Contribution/ PBT

WORKING CAPITAL MANAGEMENT
•Gross Working Capital
•Net Working Capital
•Factors Determining Capital
•Sources of Working Capital
•Approaches of Working Capital
•Daheja Committee
•Tandon Committee
•Chore Committee
•Marathe Committee
•Nayak and Var Committee

CAPITAL BUDGETING
•Process of Capital Budgeting.
•Time Value of Money.
•Methods of Capital Budgeting
Traditional Discounted Cash Flow Method
Pay Back Net Present Value method
ARR method Discounted Pay Back
Profitability Index Method
Internal Rate of Return

DIVIDEND POLICY
•Factors affecting Dividend Policy
•Forms of Dividend.
•Cash Dividend
•Stock Dividend (Bonus Shares)
•Guidelines on Issue of Bonus Shares
•Types of Dividend Policy.

3. Match the items of List - I with those of List - II and indicate the correct
code :
List - I List - II
(a) ABC Analysis (i) Dividend Decision
(b) Walter Model (ii) Capital Budgeting Decision
(c) Capital Rationing (iii) Capital Structure Decision
(d) Net Operating Income (iv) Working Capital Management Decision
Approach
Code :
(a) (b) (c) (d)
(1) (i) (iii) (ii) (iv)
(2) (ii) (i) (iii) (iv)
(3) (iv) (i) (ii) (iii)
(4) (iii) (i) (ii) (iv)

3. Code :
(a) (b) (c) (d)
(1) (i) (iii) (ii) (iv)
(2) (ii) (i) (iii) (iv)
(3) (iv) (i) (ii) (iii)
(4) (iii) (i) (ii) (iv)

4. Which one of the following is not a method of calculating cost of
equity capital ?
(1) Dividend yield method
(2) Dividend yield plus growth method
(3) Yield to maturity method
(4) Earnings yield method

Which one of the following is not a method of calculating cost of equity capital ?
(1) Dividend yield method
(2) Dividend yield plus growth method
(3) Yield to maturity method
(4) Earnings yield method

5. Which one of the following equates the present value of cash out flows
and the present value of expected cash inflows from a project ?
(1)Net Present Value
(2)Internal Rate of Return
(3) Pay back Period
(4) Accounting Rate of Return

5. Which one of the following equates the present value of cash out flows and the present
value of expected cash inflows from a project ?
(1) Net Present Value
(2) Internal Rate of Return
(3) Pay back Period
(4) Accounting Rate of Return

6. Which of the following is not a feature of payback period method ?
(1) It is simply a method of cost recovery and not of profitability.
(2) It does not consider the time value of money.
(3) It does not consider the entire earnings associated with the projects.
(4) It is very difficult to calculate.

7. Which of the following is not a source of credit information of
prospective customers ?
(1)Letter of credit
(2)Bank Reference
(3) Trade Enquiry
(4) Credit Bureau

7. Which of the following is not a source of credit information of prospective customers
?
(1) Letter of credit
(2) Bank Reference
(3) Trade Enquiry
(4) Credit Bureau

8. The portion of earnings which is distributed among shareholders in the
form of dividend is called
(1)Proprietary Ratio
(2)Earnings-yield Ratio
(3) Payout Ratio
(4) Retention Ratio

10. Which of the following formulae is related to operating leverage ?
(1) Contribution
Operating Profit
(2) Sales – Variable Cost
Earnings before Interest and tax
(3) Percentage change in EBIT
Percentage change in sales
(4) All of the above

11.The term ‘capital structure’ implies:
1.Share Capital + Reserves + Long-Term Debts
2.Share Capital + Long and Short-Term Debts
3.Share Capital + Long-Term Debts
4.Equity and Preference Share Capital

11.The term ‘capital structure’ implies:
1. Share Capital + Reserves + LongTerm Debts
2. Share Capital + Long and ShortTerm Debts
3. Share Capital + Long-Term Debts
4. Equity and Preference Share Capital

12. A company has issued 10 percent perpetual debt of ₹ 1 lac at 5
percent premium. If tax rate is 30 percent, then the cost of debt will be:
1.10 percent
2.15 percent
3.6.66 percent
4.8.21 percent

12. A company has issued 10 percent perpetual debt of ₹ 1 lac at 5 percent premium. If tax rate is
30 percent, then the cost of debt will be:
1. 10 percent
2. 15 percent
3. 6.66 percent
4. 8.21 percent

13.“Dividend is not relevant in determining the value of the company”.
Who among the following held this opinion?
1.J.E. Walter
2.Ezra Soloman
3.Modigliani – Miller
4.M. J. Gordon

37. Match the items of List - I with those of List - II and indicate the
correct code :
List - I List - II
(a) Net Income Approach (i) Working Capital Management
(b) Profitability Index (ii) Over- capitalization
(c) Concentration Banking (iii) Capital Structure Planning
(d) Lower Rate of Return (iv) Capital Budgeting Decision
Code :
(a) (b) (c) (d)
(1) (iii) (iv) (i) (ii)
(2) (iii) (iv) (ii) (i)
(3) (iv) (ii) (iii) (i)
(4) (ii) (iii) (i) (iv)

39. Dividend irrelevance argument of MM Model is based on :
(1)Hedging
(2)Issue of Debentures
(3) Liquidity
(4) Arbitrage

39. Dividend irrelevance argument of MM Model is based on :
(1) Hedging
(2) Issue of Debentures
(3) Liquidity
(4) Arbitrage

40. Sales of a firm are ₹ 74 lakh, variable costs ₹ 40 lakh, fixed costs ₹ 8
lakh. Operating leverage of the firm will be
(1)1.48
(2)1.78
(3) 1.31
(4) 2.42

40. Sales of a firm are ₹ 74 lakh, variable costs ₹ 40 lakh, fixed costs ₹ 8 lakh.
Operating leverage of the firm will be
(1) 1.48
(2) 1.78
(3) 1.31
(4) 2.42

41. From the following techniques of capital budgeting decision, indicate
the correct combination of discounting techniques :
I. Profitability index
II. Net present value
III. Accounting rate of return
IV. Internal rate of return
Codes :
(1) I II III
(2) II III IV
(3) I II IV
(4) I III IV

52. Indicate the cost of equity capital, based on capital asset pricing
model, with the following information :
Beta coefficient – 1.40
Risk-free rate of interest – 9%
Expected Rate of Return on equity in the market – 16%
(A)9.8%
(B)18%
(C) 18.8%
(D) 16%

•Basic concepts,
•Residential status and tax incidence,
•Exempted incomes,
•Computation of taxable income under various heads.
•Computation of taxable income of individuals
•Deduction of tax,
•filing of returns, different types of tax Return;
•Defaults and penalties.
•Tax Planning : Concept, of tax planning, Tax evasion and tax avoidance
INCOME – TAX LAW AND TAX PLANNING

Income Tax Concepts u/s 2 and 3
 1. Assesse u/s 2(7)
 2. Person u/s 2(31)
 3. Assessment Year u/s 2(9)
 4. Financial Year u/s 3

Residential Status u/s 6
Resident
 1. 182 days during RPY
 Or
 1. 60 days or more during RPY and
365 days or more during 4 Py
immediately preceding the RPY
 Ordinary Resident
 Not ordinary Resident
Non Resident
 Not fulfilling any of the basic
condition

Exemption u/s 10
 Agriculture income u/s 10(1): Exempt from Tax
However some of the agriculture products are partially agriculture income and
partly business income
Agriculture Crop Section Agricultur
e Income
Business
Income
Growing &
manufacturing tea
8 60% 40%
Ruber Manufacturing 7 A 65% 35%
Coefee grown 7B C1) 75% 25%
Coefee with chikorey 7B(1A) 60% 40%

House Rent Allowance u/s 10(13A)
 The least of the following is exempt from tax
1. Rent paid-10% of the basic salary
2. HRA Received
3. 50% of the basic salary in metro City and 40% of the basic in
other cities.
Conveyance Allowance u/s 10
 Exemption is allowed up to 19200 p.a and Rs. 1600 P.M

Pension u/s 10(10A)
 Commuted Pension
 Govt Employees: Fully exempted
from tax
 Other Employees:
 If receives gratuity 1/3 of the
amount is exempted.
 If not receive gratuity ½ of the
amount is exempted
 Uncommuted Pension:
 Taxable in both the categories of
the employees

Gratuity u/s 10(10)
Govt Employees:
Fully exempt from the tax
Other Employees:
Exemption limit is 10 lakh
Employees covered by Gratuity
Payment Act 1972
 The least of the following is
exempt from tax:
1)Rs. 10 lakh
2) Graduity Actually received
3) (15xlast month salary drawn x
completed year of service)/2

Deductions u/s 80 Chapter VI A Deductions
1. 80 C: Deduction for investments in notified schemes for tax benefits
Amount of Deduction = Rs. 1,50,000
2. 80CC: deduction for contribution annuity plan of LICs
3. 80CCC: 10% of basic salary as contribution to NPS
4 80D: Deduction for payment of medical Insurance premium for medical insurance Policy taken for self,
spouse and children. Amount of Deduction Rs. 25,000, additional 25,000 for parents. If parents are senior
citizen then amount of deduction Research Scholars. 30,000.
5. 80DD: Deduction for expenditure incurred on medical treatment of disabled relatives.
Amount of Deduction: Rs. 75000 with 40% disability and Rs. 1.25 lakh with 80% disability.
6. 80DDB: Deduction for treatment of critical diseases
Below 60 year: Amount of Deduction Rs. 40,000
Above 60 year: Amount of Deduction Rs. 60,000
7. Above 80 year: Amount of Deduction Rs. 80,000

80E: Deduction for interest on education loan taken for higher Education
80EE: Deduction for interest on loan taken by first time home buyer.
Amount of Deduction Rs. 50,000
8. 80 G: Deduction for donations to notified funds and charitable institutions.
Amount of Deduction= 100% or 50% and with subject to GTI or not subject to GTI
 80 GG: Deduction is applicable to those individual who do not receive HRA not own residential
house property.
The least of the following is the amount of deduction
1. Rent paid (- )10% of the total income
2. Rs. 5000 p.m
3. 25% of the total income
 80 GGC: Deduction is available in respect of the donation to the political party if it is registered
u/s 29A of the people Act 1951
 80TTA: Deduction is available to the individual or HUF or HUF in respect og interest on deposits
with SB a/c with banks, post office and cooperative societies. Deduction is not available for
interest on FDs.
 80U: Deduction is available to assesse who is mentally retarded

Computation of Gross Annual Value u/s
23
1. Fair Rent
2. Muncipal Value
3. Higher of 1 or 3
4. Standard Rent
5= Take lower of 3 or 4
6. Actual Rent Received
7. Gross Annual Value= higher of 5 or 6

Deduction on interest on Loan taken for
House property u/s 24
 SOP: Amount of Deduction Rs. 2,50,000
 LOP: full amount of interest is allowed as
deduction
 Loan for repairs and renovation: Rs. 30,000

Capital Gain: gain on sale of capital
assets u/s 54
 Long term Capital Gain
 Gain on sale of capital assets held for more than 36 months
 However immovable property and unlisted shares held for period of 24
months is treated as long term capital gain
 Rate of tax 20%+SC+Education cess
 Short Term Capital Gain:
 Capital asset held for less than 36 months
 Rate of tax 10%+SC+Education cess
 Note: from 1st feb 2018 onwards LTCG over 1 lakh will be taxed at 10%
without indexation

Income tax Slab Rate F. Y 2017-18
Taxable Income General Category Senior Citizen >60 & <
80
Senior Citizen > 80
Upto Rs. 2,50000 Nil Nil Nil
Rs. 2,50,001-3,00,000 5% Nil Nil
Rs.. 3,00,001-5,00000 5% 5% Nil
Rs. 5,00,001-10,00,000 20% 20% 20%
Above Rs. 10,00,000 30% 30% 30%

Types of ITR
 1. ITR 1: To be filed by the individual who have income from salary, pension and
interest
 2. ITR 2: To be filed by the individual or HUF who have income from different
heads but not from business and profession
 3. ITR 3: To be filed by the individual who are partners in Partnership firm
 4. ITR 4: To be filed by the individual who have income from business and
Profession
 5. ITR 4s: To be filed by the individual who have income from presumtive business
and profession
 6. ITR 5: To be filed by the firms, AOP, BOI
 7. ITR 6: To be filed by the Company
 8. ITR 7: By the trust comes u/s 139(4A), 4B, 4C and 4D

Concepts of Tax Planning
 1. Tax Evasion:
Illegal practice of the person intentionally to avoid tax liability
 2. Tax Avoidance
Planning to minimize the tax liability within the income Tax law.
 3. Tax planning:.
 Making the best use of various exemption and deduction to
minimize the tax liability

Practice Questions for Exam
Income – Tax Law And Tax
Planning

1. If an assesse is engaged in the business of growing and manufacturing
tea in India, the portion of agricultural income in that case shall be
(1) 100%
(2) 60%
(3) 50%
(4) 40%
1. If an assesse is engaged in the business of growing and manufacturing
tea in India, the portion of agricultural income in that case shall be
(1) 100%
(2) 60%
(3) 50%
(4) 40%

3. X donated ₹ 20,000 to a charitable institution, which is eligible for deduction u/s
80 G, during the financial year 2017-18. His total income during the period was ₹
1,50,000. How much deduction he can claims u/s 80 G ?
(1)₹ 7,500
(2)₹ 10,000
(3)₹ 15,000
(4)₹ 20,000
3. X donated ₹ 20,000 to a charitable institution, which is eligible for deduction u/s
80 G, during the financial year 2015-16. His total income during the period was ₹
1,50,000. How much deduction he can claims u/s 80 G ?
(1)₹ 7,500
(2)₹ 10,000
(3)₹ 15,000
(4)₹ 20,000

4. X is employed in a private company at a salary of ₹ 70,000 per month and ₹
10,000 per month as dearness pay. He received ₹ 2,000 per month as house rent
allowance. He paid ₹ 2,500 per month as house rent. What is the exempted portion
of house rent allowance ?
(1)₹ 2,500
(2)₹ 2,000
(3) ₹ 1,000
(4) NIL
4. X is employed in a private company at a salary of ₹ 70,000 per month and ₹ 10,000 per
month as dearness pay. He received ₹ 2,000 per month as house rent allowance. He paid ₹
2,500 per month as house rent. What is the exempted portion of house rent allowance ?
(1)₹ 2,500
(2)₹ 2,000
(3) ₹ 1,000
(4) NIL

9. The statutory limit for deduction u/s 80 GG of Income tax Act, 1961, for the
assessment year 2017-18 is
(1)₹ 2,000 per month
(3) ₹ 2,500 per month
(4) ₹ 5,000 per month
9. The statutory limit for deduction u/s 80 GG of Income tax Act, 1961, for the
assessment year 2017-18 is
(3) ₹ 2,500 per month
(4) ₹ 5,000 per month

11. Indicate the correct code for forms for filing income tax return from
the following Income Tax Return Forms :
(a) ITR-4S
(b) ITR-2
(c) ITR-2B
(d) ITR-3
Codes :
(1)(a), (b) and (c)
(2)(b), (c) and (d)
(3) (a), (b) and (d)
(4) (a), (c) and (d)

12. Match the items of the List – I with List – II and indicate the correct
code :
a. House rent allowance i. A deduction from income
b. Casual income ii. A step taken by tax authorities
c. Collection charges of interest on
securities iii. Taxable income
d. Best judgement assessment iv. Partly taxable allowance
Codes :
a b c d
(1) iv iii ii i (3) iii iv i ii
(2) iv iii i ii (4) ii iv i iii

12. Match the items of the List – I with List – II and indicate the correct
code :
a. House rent allowance i. A deduction from income
b. Casual income ii. A step taken by tax authorities
c. Collection charges of interest on securitiesiii. Taxable income
d. Best judgement assessment iv. Partly taxable allowance
Codes :
a b c d
(1) iv iii ii i
(2) iv iii i ii
(3) iii iv i ii
(4) ii iv i iii

13. For the purpose of assessment under Income Tax Act, 1961, which
combination of the following represent income ?
(I) Tax-free salary from the private sector employer.
(II) Pin money received by a family member.
(III) Awards received by the sports persons.
(IV) Loss incurred by the assesse.
(V) Perquisites received by employees.
Codes :
(1)(I), (II), (III), (IV)
(2)(II), (III), (IV), (V)
(3) (I), (III), (IV), (V)
(4) (I), (II), (IV), (V)

14. Consider the following conditions:
a.An individual is in India for a period of 182 days in the financial year
in which he is getting his salary income.
b.An individual is in India for a period of 60 days or more during
financial year in which he gets his salary and 365 days or more
during 4 years immediately preceding to that financial year.
If one of the above conditions is satisfied, as per the provisions of
Income Tax Act, 1961 he is:
1.Resident
2.Non – resident citizen of India
3.Resident and categorized citizen of India U/S 29
4.Ordinary resident of India

15. Agricultural income is exempted from income tax under the
following section of Income Tax Act, 1961:
1.2 (1A)
2.10 (1)
3.10 (2)
4.10 (4)
15. Agricultural income is exempted from income tax under the
following section of Income Tax Act, 1961:
1.2 (1A)
2.10 (1)
3.10 (2)
4.10 (4)

20. Match the following items of List – I and List – II and select the correct answer
from the
codes given below :
List – I (Sections) List – II (Maximum Deduction)
a. Section 80C of I.T. Act i. ₹ 10,000
b. Section 80D of I.T. Act ii.₹ 75,000
c. Section 80 DDB of I.T. Act iii.₹ 1,50,000
d. Section 80 TTA of I.T. Act iv. ₹ 25,000
Codes :
a b c d
(A) iii i iv ii
(B) iii iv ii i
(C) iv iii ii i
(D) ii iii i iv

22. Long term capital loss can be set off from which of the following ?
(A) Short term capital gain only
(B) Long term capital gain only
(C) Income from business and profession
(D) Capital gain head of income
22. Long term capital loss can be set off from which of the following ?
(A) Short term capital gain only
(B) Long term capital gain only
(C) Income from business and profession
(D) Capital gain head of income

24. Calculate the Gross Annual Value from the following details :
Municipal Value – ₹ 45,000
Fair Rental Value – ₹ 50,000
Standard Rent – ₹ 48,000
Actual Rent – ₹ 42,000
(A)₹ 50,000
(B)₹ 48,000
(C)₹ 45,000
(D)₹ 42,000

26. Mr. X, a non-resident, earned ₹ 36,000 as interest on German Development
Bonds. Of this, he received one-sixth in India. The amount to be included as interest
for the computation of his Gross Total Income is
A. ₹ 36,000
B. ₹ 30,000
C. ₹ 6,000
D. Nil
26. Mr. X, a non-resident, earned ₹ 36,000 as interest on German Development
Bonds. Of this, he received one-sixth in India. The amount to be included as interest
for the computation of his Gross Total Income is
A. ₹ 36,000
B. ₹ 30,000
C. ₹ 6,000
D. Nil

27. Consider the following problem relating to a let-out house property:
Municipal value - ₹ 60,000
Fair rent - ₹ 68,000
Standard rent under the Rent Control Act - ₹ 62,000
Annual Rent received - ₹ 65,000
The Gross Annual Value of the property will be
A. ₹ 68,000
B. ₹ 62,000
C. ₹ 65,000
D. ₹ 60,000

Syllabus to be covered
 Importantce of Banking to Business
 Types of Banks
 Functions of Banks
 Reserve Bank of India
 NABARD (National Agricultural And Rural Development Bank)
 Rural Banking
 Banking Sector Reforms In India
 NPA (Non Performing Assets)
135

Syllabus to be covered
 Capital Adequacy Norms
 E-Banking
 Development Banking : (IDBI, IFCI, SFCs, UTI, SIDBI)
137

Importance of Banking to Business
 Capital Formation and Promoting of Industries
 Easiness of Trade and Commerce Functions
 Implementation of Monetary Policy
 Balanced Development
 Act as an Agent
 Advisory to Business Units
138

Reserve Bank of India
 Commenced Its Operations On 1 April 1935
 Nationalised On 1 January 1949
 21-member Central Board Of Directors
 Headquartered at Mumbai, Kolkata, Chennai And New Delhi
 First Governor : Osborne Smith
 First Indian Governor: C. D. Deshmukh
 First Governor After Independence: Benegal Rama Rau
 Current Governor: Urjit Patel
141

Functions of RBI
 Monetary Authority
 Regulator And Supervisor of The Financial System
 Regulator And Supervisor of The Payment Systems
 Manager of Foreign Exchange
 Issuer of Currency
 Developmental Role
 Banker to The Government
 Banker to Banks
 Lender of Last Resort
 An Agent of Government of India In The IMF
142

NABARD (National Agricultural and Rural
Development Bank)
 Established On The Recommendations of B.Sivaraman Committee
 Commenced On12 July 1982
 Premier Agencies Providing Developmental Credit In Rural Areas
143

Functions of NABARD
 Developmental Activities In Rural Areas
 Takes Measures Towards Institution Building
 Co-ordinates The Rural Financing Activities
 Monitoring And Evaluation Of Projects Refinanced
 Refinances The Financial Institutions Which Finances The
Rural Sector.
 Help The Rural Economy.
 Regulates The Institutions Which Provide Financial Help To
The Rural Economy.
 Provides Training Facilities For Rural Upliftment.
 It Regulates The Cooperative Banks And The RRB’s
144

Rural Banking
 Pradhan Mantri Jan Dhan Yojana
 70% of Population Of India Is Still Rural
 Financial Needs of Rural Society
 The Credit to Weaker Sections (hassle-free, Concessional Rates)
 Simplification of Lending Procedures - Gupta Committee Recommendations
 Kisan Credit Cards
 Deregulation of Lending Rates
145

Banking sector Reforms in India
 Narasimham Committee’s Recommendations (1991)
 Four-tier Hierarchy for The Banking Sector
 Abolition of Branch Licensing System
 Entry of Private Banks
 Reduction of Statutory Liquidity Ratio (SLR) And Cash Reserve Ratio (CRR)
 Strengthening of Banking Supervision.
 Asset Reconstruction Fund for Bad And Doubtful Loans
 Measures Taken?
 Impact of Reform?
146

NPA (Non Performing Assets)
 Bad Loans
 Overdue for A Period of More Than 90 Days
 Agriculture / Farm Loans 2 Crop Seasons
 Reasons for The Rise In NPA?
 Steps Taken by RBI and Government?
 Public Sector Banks (PSB)
-Short Term Measures
-Long Term Measures
147

Capital Adequacy Norms
 Narasimham Committee (1991)
 Ratio of Bank's Capital to Its Risk Assets
 Importance to Solvency
 Prudential Norms
 Basel Committee
148

E-Banking
 Online banking was first started in 80’s
 E-Banking in India
 Pre Requisite of E-Banking
 Tools of E-banking
 Advantages of E-Banking
 Limitation of E-Banking
 Legal issues (cyber crimes/Hacking)
149

Development Banking
 IDBI, IFCI, SFCs, UTI, SIDBI
 Year of Establishment
 Location and Branches of Each
 Functions of Each Banks
150

Bitcoins
 Cryptocurrency (Digital Currency)
 History of Bitcoins (August 2008)
 Working/Concept of Bitcoins
 Purchase And Sale of Bitcoins
 Value of Bitcoins
 Advantage And Limitation
 Acceptance of Bitcoins By Various Countries
151

Sample questions
1. Bank deposit refers to
A. The amount of money standing to the credit of a customer of a bank
B. A term used by the Federal Reserve to refer to the total deposits of member
banks
C. The amount of money standing to the debit as a customer of a bank
D. All of the above
Answer: D
152

Sample questions
2. As per the RBI's clean note policy writing on a currency note is
A. An offense
B. A crime
C. A punishable offence
D. The notes becomes non-legal tender
Answer: C
153

Sample questions
3. Who is the chairman of the working group to review the Benchmark Prime
Lending Rate constituted by RBI?
A. M.S. Verma
B. R.N. Malhotra
C. J.V. Shetty
D. Deepak Mohanty
Answer: D
154

Sample questions
4. Chalpathi Rao committee was meant for restructuring of
A. State financial corporation in India
B. Commercial banks in India
C. Co-operative banks in India
D. Regional Rural banks in India
Answer: D
155

Sample questions
5. SBI's new training initiative "Strategic Training Unit" is located at
A. New Delhi
B. Bangalore
C. Hyderabad
D. Mumbai
Answer: C
156

Sample questions
6. Real Time Gross Settlement (RTGS) is management by
A. State Bank of India
B. Reserve Bank of India
C. Indian Bank Association
D. Government of India
Answer: B
157

Sample questions
7. Which bank was incorporated as one of the public sector bank in India during
2004-05?
A. ICICI Bank
B. IDBI Bank Ltd
C. Yes Bank Ltd
D. UTI Bank Ltd
Answer: C
158

Sample questions
8. M Narasimham headed
A. The working group constituted by the Government of India in July 1975 for the
establishment of Regional Rural Banks
B. The committee on the financial system 1991
C. The committee on Banking Sector Reforms 1997
D. All of the above
Answer: D
159

Sample questions
9. In order to control credit in the country the RBI may
A. Buy securities in the open market
B. Sell securities in the open market
C. Reduce CRR
D. Reduce Bank Rate
Answer: B
161

Sample questions
10. Vaidyanthan committee report relates to revival of
A. RRBS
B. NBFCs
C. Cooperative Credit Structure
D. Nationalised Banks
Answer: C
162

Sample questions
11. The rate at which RBI lends to banks under the Liquidity Adjustment Facility
(LAF) is called
A. Repo Rate
B. Reverse Repo Rate
C. Bank Rate
D. Cash Reserve Ratio
Answer: A
163

Sample questions
12. Match the following
List-I List-II
(a) Credit control I. MCA
(b) Corporate control II. SEBI
(c) IPO control III. IRDA
(d) ULIP control IV. RBI
A. (a) (b) (c) (d)
IV II III I
B. (a) (b) (c) (d)
IV I II III
C. (a) (b) (c) (d)
II III IV I
D. (a) (b) (c) (d)
IV I III II
164 Answer: B

Sample questions
13. Match the following
List-I List -II
(a) Unit Trust of India I. 1921
(b) Banking Regulation Act II. 1949
(c) Imperial Bank of India III.1964
(d) NABARD IV. 1982
A (a) (b) (c) (d)
I III II IV
B (a) (b) (c) (d)
IV I II III
C (a) (b) (c) (d)
II IV III I
D (a) (b) (c) (d)
III II I IV
165
Answer: D

Sample questions
14. Total number of RRBs now functioning is
A. 84 B. 98 C. 112 D. 154
Answer: A
15. SEBI is
A. Regulatory Authority
B. Statutory Authority
C. Both (a) and (b)
D. None of these
Answer: C
166

Tip No. 1
NET/SLET
Commerce
M.Com.
(Any optional
subject including
Management)
Management
MBA/MMS
167

Tip No. 3
 No Negative Marking.
 So in the END Attempt all Questions.
 As far as possible don’t leave any question UNANSWERED.
168

Tip No. 4
If You Know the Correct Option
&
You Attempt it
SUCCESS Rate = 100%
169

Tip No. 5: Don’t Know the Answer then use
“Elimination” StrategyOut of 4 Options
Eliminate
Remaining
Options After
Elimination
Probability of
Success
Probability of
Failure
0 4 25 % 75 %
1 3 33.33 % 66.67 %
2 2 50 % 50 %
3 1 100 % 0 %
170

Tip No. 6
BEWARE of Wordings in the
Question.
Understand Question Types
– Discussed alongwith
Illustrations……..>>>>>>> 171

Q. Type-1: Simple Elimination Strategy
Who has given the formula to calculate the number of relationships in a Span of
Control?
(A) Henri Fayol
(B) V. A. Graicunas
(C) Peter Drucker
(D) Frederick Winslow Taylor
172

Q. Type-1(A): Simple Elimination
Strategy
Who has given the formula to calculate the number of relationships in a Span of
Control?
(A) Henri Fayol
(B) V. A. Graicunas
(C) Peter Drucker
(D) Frederick Winslow Taylor
173

Q. Type-2: NOT True = False = Incorrect
= Wrong = Not Correct = Not Right
Which of the following is NOT True?
(A) For overcoming the limitation of scalar chain, the concept of ‘Gang Plank’
was introduced.
(B) Gang plank increases a lot of time and reduces effective performance.
(C) Gang Plank helps in bringing faster solution to organizational problems.
(D) Gang plank is a shorter emergency route through which the workers lower in
the authority chain can directly contact the persons of higher authority.
174

Q. Type-2(A): NOT True = False =
Incorrect = Wrong = Not Correct = Not
Right
Which of the following is NOT True?
(A) For overcoming the limitation of scalar chain, the concept of ‘Gang Plank’
was introduced.
(B) Gang plank increases a lot of time and reduces effective performance.
(C) Gang Plank helps in bringing faster solution to organizational problems.
(D) Gang plank is a shorter emergency route through which the workers lower in
the authority chain can directly contact the persons of higher authority.
175

Q. Type-3: Identify the True Option
Which one of the following is True statement?
A. There are no similarities between Human Resource Management and
Personnel Management.
B. The objective of Human Resource Management is to generate maximum
development of human resources within the organisation.
C. Framing an unsound promotion policy helps an organisation to grow.
D. Employees skill can be developed through training. Answer
176

Q. Type-3: Identify the True Option
[3 False & 1 True Option] {Pick out the Odd one}
Which one of the following is True statement?
A. There are no similarities between Human Resource Management and
Personnel Management.
B. The objective of Human Resource Management is to generate maximum
development of human resources within the organisation.
C. Framing an unsound promotion policy helps an organisation to grow.
D. Employees skill can be developed through training.
177

Q. Type-4: None of the above
Who is considered Father of Scientific Management?
(A) Peter Drucker
(B) Henry Fayol
(C) Victor Vroom
(D) None of the above
178

Q. Type-4(A): None of the above [Confusing
Type; Most Dangerous Type; Answer only if Known]
Who is considered Father of Scientific Management?
(A) Peter Drucker
(B) Henry Fayol
(C) Victor Vroom
(D) None of the above
179

Q. Type-5: NOT an Advantage =
Disadvantage
Which of the following is NOT an advantage of Line Organisation?
(A) Simplest and oldest form
(B) Specialization
(C) Clear definition of authority
(D) Easier supervision and control
180

Q. Type-5(A): NOT an Advantage =
Disadvantage
Which of the following is NOT an advantage of Line Organisation?
(A) Simplest and oldest form
(B) Specialization
(C) Clear definition of authority
(D) Easier supervision and control
181

Q. Type-6: Assertion and Reason
{With 5 Options (Maximum)}
Directions: In the following question, there are two statements labeled as Assertion (A) and
Reason (R).
 Assertion (A) : Management is a continuous process.
 Reason (R) : Managers first plan, then organise and finally perform the function of
controlling.
Choose the correct alternative from the following:
Answer Codes :
(A) Both A and R are True and R is the correct explanation of A.
(B) Both A and R are True but R is NOT the correct explanation of A.
(C) A is True but R is False.
(D) A is False but R is True.
(E) Both A and R are False.
182

Q. Type-6(A): Assertion and Reason
[Give Reason; Connect with ‘Because’]Directions: In the following question, there are two statements labeled as
Assertion (A) and Reason (R).
 Assertion (A) : Management is a continuous process.
……BECAUSE……
 Reason (R) : Managers first plan, then organise and finally perform the function
of controlling.
Choose the correct alternative from the following:
Answer Codes :
(A) Both A and R are True and R is the correct explanation of A.
(B) Both A and R are True but R is NOT the correct explanation of A.
(C) A is True but R is False.
(D) A is False but R is True.
(E) Both A and R are False. 183

{With 4 Options (Limited Options)}
Directions: In the following question, there are two statements labeled as Assertion (A) and Reason (R).
 Assertion (A) : Delegation and Decentralisation are synonymous terms.
 Reason (R) : In Decentralisation more managers are required leading to high operating costs.
Choose the correct alternative from the following Answer Codes:
(A) Both (A) and (R) are correct and (R) is correct explanation of
(A).
(B) Both(A) and (R) are correct, but (R) is not a correct
explanation of (A).
(C) (A) is correct, but (R) is incorrect.
(D) (A) is incorrect, but (R) is correct.
184

Incorrect = Wrong = False = Not True = Not Correct = Not
Right AND Correct = Right = True = Not False = Not Wrong =
Not IncorrectDirections: In the following question, there are two statements labeled as Assertion (A) and Reason
(R).
 Assertion (A) : Delegation and Decentralisation are synonymous terms.
 Reason (R) : In Decentralisation more managers are required leading to high operating costs.
Choose the correct alternative from the following Answer Codes :
(A) Both (A) and (R) are correct and (R) is correct explanation
of (A).
(B) Both(A) and (R) are correct, but (R) is not a correct
explanation of (A).
(C) (A) is correct, but (R) is incorrect.
(D) (A) is incorrect, but (R) is correct.
185

Incorrect = Wrong = False = Not True = Not Correct = Not Right AND
Correct = Right = True = Not False = Not Wrong = Not Incorrect
Directions: In the following question, there are two statements labeled as
 Assertion (A) : HRM and Personnel Management are synonymous terms.
 Reason (R) : Personnel Management deals with personal issues of the
employees.
Answer Codes :
(A) Both (A) and (R) are True.
(B) Both (A) and (R) are NOT True.
(C) (A) is True, but (R) is False.
(D) (R) is True, but (A) is False.
186

Incorrect = Wrong = False = Not True = Not Correct = Not Right AND
Correct = Right = True = Not False = Not Wrong = Not Incorrect
Directions: In the following question, there are two statements labeled as
 Assertion (A) : HRM and Personnel Management are synonymous terms.
 Reason (R) : Personnel Management deals with personal issues of the
employees.
Answer Codes :
(A) Both (A) and (R) are True.
(B) Both (A) and (R) are NOT True.
(C) (A) is True, but (R) is False.
(D) (R) is True, but (A) is False.
187

Q. Type-9: Match the following
1. Task Force i. 1856-1915
2. Directing ii. 1841-1925
3. Henry Fayol iii. Work Group
4. Fredrick Winslow Taylor iv. Commanding
Answer Codes :
1 2 3 4
A. ii i iv iii
B. iii iv ii i
C. i ii iii iv
D. iv ii iii i
188

Q. Type-9(A): Match the following
[Carefully See Numbering Style of both the Columns; Success in
1st Try]
1. Task Force i. 1856-1915
2. Directing ii. 1841-1925
3. Henry Fayol iii. Work Group
4. Fredrick Winslow Taylor iv. Commanding
Answer Codes :
1 2 3 4
A. ii i iv iii
B. iii iv ii i
C. i ii iii iv
D. iv ii iii i
189

[Carefully See Numbering Style of both the Columns; Here
Success is in 2nd Try; Trial & Error Method]
Match the following:
List-I List-II
(a) Maslow (i) Hygiene Theory
(b) Herzberg (ii) X and Y Theory
(c) Ouchi (iii) Need Hierarchy Theory
(d) McGregor (iv) Z Theory
Answer Codes:
(a) (b) (c) (d)
(A) (i) (ii) (iii) (iv)
(B) (iii) (ii) (iv) (i)
(C) (iv) (iii) (ii) (i)
(D) (iii) (i) (iv) (ii)
190

[Carefully See Numbering Style of both the Columns; Success is in 2nd
Try; Trial & Error Method; Strike-off Non-applicable options; 50-50
Option]
List-I List-II
Answer Codes:
(a) (b) (c) (d)
(A) (i) (ii) (iii) (iv)
(B) (iii) (ii) (iv) (i)
(C) (iv) (iii) (ii) (i)
(D) (iii) (i) (iv) (ii)
191

Q. Type-10(A): Match the following
[Carefully See Numbering Style of both the Columns; Success in 2nd
Attempt; Trial & Error Method; Strike-off Non-applicable options]
List-I List-II
Answer Codes:
(a) (b) (c) (d)
(A) (i) (ii) (iii) (iv)
(B) (iii) (ii) (iv) (i)
(C) (iv) (iii) (ii) (i)
(D) (iii) (i) (iv) (ii)
192

Q. Type-11: NOT include = Pick out the
Odd one
HRM does NOT include:
(A) Job Evaluation
(B) Performance Appraisal
(C) Sales Promotion
(D) Job Enrichment
193

Q. Type-11(A): NOT include = Pick out the
Odd one [3 Options are Correct & 1 Option is Wrong]
HRM does NOT include:
(A) Job Evaluation
(B) Performance Appraisal
(C) Sales Promotion
(D) Job Enrichment
194

Q. Type-12: EXCEPT = Pick out the Odd
one [3 Options are Correct & 1 Option is Wrong]
All of the following are Functions of Production Management, EXCEPT:
(A) Process Selection and Planning
(B) Quality Control
(C) Inventory Control
(D) Customer Satisfaction
195

Q. Type-12(A): EXCEPT = Pick out the Odd one
[3 Options are Correct & 1 Option is Wrong]
All of the following are Functions of Production Management, EXCEPT:
(A) Process Selection and Planning
(B) Quality Control
(C) Inventory Control
(D)Customer Satisfaction
196

Q. Type-13: Pick out the Correct One
The following items of Incomes do NOT form part of Total Income EXCEPT:
A. Agricultural Income
B. LTA/ LTC received by an employee from his employer
C. Salary
D. Compensation received by Workmen under the Industrial Disputes Act, 1947
197

Q. Type-13(A): Pick out the Correct One
[3 Wrong Options & 1 Correct Option]
The following items of Incomes do NOT form part of Total Income EXCEPT:
A. Agricultural Income
B. LTA/ LTC received by an employee from his employer
C. Salary
D. Compensation received by Workmen under the Industrial Disputes Act, 1947
198

Q. Type-14: Multiple Correct Methods
Which one of the following is NOT in sequence of personnel training procedure?
1. Instructor Preparation
2. Present the task
3. Try out performance
4. Training preparation
5. Follow-up
Answer Codes :
(A) 1, 2, 3, 4, 5
(B) 2, 1, 4, 3, 5
(C) 1, 4, 2, 3, 5
(D) 3, 1, 2, 5, 4
199

Q. Type-14(A): Multiple Correct
Methods
Which one of the following is NOT in sequence of personnel training procedure?
1. Instructor Preparation
2. Present the task
3. Try out performance
4. Training preparation
5. Follow-up
Answer Codes :
(A) 1, 2, 3, 4, 5
(B) 2, 1, 4, 3, 5
(C) 1, 4, 2, 3, 5
(D) 3, 1, 2, 5, 4
200

Q. Type-15: Expand the Abbreviation
The abbreviation ASK stands for:
(A) Aptitude, Social, and Knowledge.
(B) Attitudes, Skills, and Knowledge.
(C) Action, Speak, and Known.
(D) Ability, Soft Skills, and Knowing.
201

Q. Type-15(A): Expand the
Abbreviation
The abbreviation ASK stands for:
(A) Aptitude, Social, and Knowledge.
(B) Attitudes, Skills, and Knowledge.
(C) Action, Speak, and Known.
(D) Ability, Soft Skills, and Knowing.
202

Q. Type-20: Multiple Correct
Responses
A leader uses the following methods:
(i) Uses criticism.
(ii) Encourages growth
(iii) Sets objectives
(iv) Gives orders & directions
Which of these methods are used by a democratic leader?
(A) (i) & (ii)
(B) (iii) & (iv)
(C) (ii) & (iii)
(D) (i), (ii) & (iv)
204

Q. Type-20(A): Multiple Correct
Responses
A leader uses the following methods:
(i) Uses criticism.
(ii) Encourages growth
(iii) Sets objectives
(iv) Gives orders & directions
Which of these methods are used by a democratic leader?
(A) (i) & (ii)
(B) (iii) & (iv)
(C) (ii) & (iii)
(D) (i), (ii) & (iv)
205

Q. Type-21: All of the above
Managerial Skills relates to which of the following?
(A) Conceptual Skills
(B) Human Skills
(C) Technical Skills
(D) All of the above
206

Q. Type-21(A): All of the above = All
Options Correct [Read till the last & don’t
answer by looking only at the 1st option]
Managerial Skills relates to which of the following?
(A) Conceptual Skills
(B) Human Skills
(C) Technical Skills
(D)All of the above
207

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Financial management and tax planning net exam

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