Question : Statement 1: Selling concept aims to increase short-term sales by aggressive promotional strategies.
Statement 2: Marketing concept disregards customer preferences and solely focuses on sales.
Option 1: Both statements are correct.
Option 2: Statement 1 is correct, and statement 2 is false.
Option 3: Both statements are incorrect.
Option 4: Statement 2 is correct, and statement 1 is incorrect.
Correct Answer: Statement 1 is correct, and statement 2 is false.
Solution : The correct answer is (b) Statement 1 is correct, and statement 2 is false.
Statement 1 is correct. The selling concept does aim to increase short-term sales through aggressive promotional strategies and high-pressure sales techniques. Its focus is on achieving immediate sales rather than long-term customer satisfaction.
Statement 2 is false. The marketing concept does not disregard customer preferences; in fact, it emphasizes understanding and fulfilling customer preferences. The marketing concept is customer-oriented and aims to deliver value to customers based on their needs and preferences.
Answer laterQuestion : Opening Inventory Rs.28,000
Closing Inventory Rs.52,000
Revenue from Operations (Sales) Rs.6,00,000
Gross Profit 25% on the cost of revenue from operations
The inventory turnover ratio will be ………
Option 1: 8 times
Option 2: 2.4 times
Option 3: 1.2 times
Option 4: 12 times
Correct Answer: 12 times
Solution : Answer = 12 times
Inventory Turnover Ratio = Cost of goods sold/Average Inventory
$\begin{gathered}\Rightarrow \quad 4,80,000 /40,000 \\ =12 \text { times }\end{gathered}$
Cost of goods sold = Sales - G.P
$x=6,00,000-\frac{x}{4}$
$\begin{aligned} 5 x & =6,00,000 \times 4 \\ x & =4,80,000\end{aligned}$
Cost of goods sold = 4,80,000
Average Inventory
$\begin{aligned} & =\frac{28000+58000}{2} \\ & =80,000 / 2 \\ & =40,000\end{aligned}$
Hence, the correct option is 4.
Question : Statement 1: Selling concept focuses on building long-term customer loyalty through value creation.
Statement 2: Marketing concept solely relies on aggressive advertising for sales.
Option 1: Both statements are correct.
Option 2: Statement 1 is correct, and statement 2 is false.
Option 3: Both statements are incorrect.
Option 4: Statement 2 is correct, and statement 1 is incorrect.
Correct Answer: Both statements are incorrect.
Solution : The correct answer is (c) Both statements are incorrect.
Statement 1 is incorrect. The selling concept primarily focuses on short-term sales and transactions rather than building long-term customer loyalty. It often involves aggressive sales tactics to close deals.
Statement 2 is false. The marketing concept does not solely rely on aggressive advertising for sales. The marketing concept involves understanding customer needs, creating valuable products or services, and effectively promoting them, considering a holistic approach to meet both customer satisfaction and business goals.
Therefore, statement 1 is incorrect, and statement 2 is false.
Question : Revenue from Operations (Sales) Rs. 16,00,000; Average Inventory Rs.2,20,000; Gross Loss Ratio 5%. Inventory turnover ratio will be
Option 1: 7.63 times
Option 2: 7 times
Option 3: 7.4
Option 4: None of the above
Correct Answer: 7.63 times
Solution : Answer = 7.63 times
$\text{Inventory Turnover Ratio}= \frac{\text{Cost of goods sold}}{\text{Average Inventor}}$
= 16,80,000/2,20,000
Cost of goods sold = Sales + G.loss
= 16,00,000 + 80,000
= 16,80,000
Hence, the correct option is 1.
Question : Assertion: Sales promotion techniques aim to create brand loyalty and long-term customer relationships.
Reason: Sales promotion techniques focus solely on short-term sales boosts and discounts.
Option 1: Both assertion and reason are true, and the reason is the correct explanation of the assertion.
Option 2: Both assertion and reason are true, but the reason is not the correct explanation of the assertion.
Option 3: Assertion is true, but the reason is false.
Option 4: Assertion is false, but the reason is true.
Correct Answer: Both assertion and reason are true, but the reason is not the correct explanation of the assertion.
Solution : The correct answer is (b) Both assertion and reason are true, but the reason is not the correct explanation of the assertion.
The assertion is true. Sales promotion techniques can indeed aim to create brand loyalty and long-term customer relationships. While they are often used to drive short-term sales, they can also be strategically designed to encourage repeat purchases and foster customer loyalty.
The reason is true, but it does not provide the correct explanation. While sales promotion techniques do often focus on short-term sales boosts and discounts, this does not mean they can't also be used to build brand loyalty and long-term customer relationships. Many sales promotions are structured to reward repeat purchases, engage customers, and establish a positive brand image over time. Therefore, the reason does not correctly explain the assertion.
Question : Sharma, Verma and Goyal are partners in a firm. On 1st April 2012 the balances in their Capital Accounts were as follows:
Sharma Rs. 4,00,000; Verma Rs. 4,20,000 and Goyal Rs. 3,70,000. The firm closes its accounts every year on 31st March. Verma died on 30th September 2012. In the event of the death of any partner following are the provisions in the Partnership Deed:
(i) Interest on Capital will be calculated at the rate of 10% p.a.
(ii) The deceased partner; 's legal representative will be paid Rs. 35,000 for his share of goodwill.
(iii) The firm had a Reserve Fund of Rs. 2,10,000. The deceased partner will be paid his share in the Reserve Fund.
(iv) His share of profit till the date of death will be calculated based on sales. It is also specified that the sales during the year 2011-12 were Rs. 15,00,000. The sales from 1st April 2012 to 30th September 2012 were Rs. 3,00,000. The profit of the firm for the year ending 31st March 2012 was Rs. 3,00,000.
Question:
Amount Due to the deceased's partner's capital account will be ......
Option 1: Rs 3,66,000
Option 2: Rs 6,06,000
Option 3: Rs 5,66,000
Option 4: None of the above
Correct Answer: Rs 5,66,000
Solution : Answer = Rs 5,66,000
| Verma's Capital A/c | |||
| By Verma's executor a/c (b/f) | 5,66,000 | By Bal b/d | 4,20,000 |
| By IOC | 21,000 | ||
| ($4,20,000 \times \frac{10}{100} \times \frac{6}{12}$) | |||
| By Reserve fund | 70,000 | ||
| ($2,10,000 \times \frac{1}{3}$) | |||
| By Sharma & Goyal capitals | 35,000 | ||
| By P & L suspense a/c | 20,000 | ||
| 5,66,000 | 5,66,000 | ||
$\frac{3,00,000}{15,00,000}$×3,00,000= 60,000$\times \frac{1}{3}$= 20,000.
Hence, the correct option is 3.
Question : L, M and R were partners sharing profits in the ratio of 2 : 2 : 1. The firm closes its books on March 31 every year. On June 30, 2017, R died. The following information is provided on R’s death:
(i) Balance in his capital account in the beginning of the year was Rs.6,50,000.
(ii) He withdrew Rs.60,000 on May 15, 2017 for his personal use.
On the date of death of a partner the partnership deed provided for the following:
(a) Interest on capital @ 10 % per annum.
(b) Interest on drawings @ 12 % per annum.
(c) His share in the profit of the firm till the date of death, to be calculated on the basis of the rate of Net Profit on Sales of the previous year, which was 25 %. The Sales of the firm till June 30, 2017 were Rs.6,00,000.
Amount due to R’s Executor’s is
Option 1: Rs.93,530
Option 2: Rs.93,500
Option 3: Rs.90,000
Option 4: Rs.90,535
Correct Answer: Rs.90,535
Solution : Answer = Rs 90535
Capital = 65000
(+) Interest on Capital= 1625
(65000 * 10/100 * 3/12)
(+) Profit =30,000
(6,00,000 * 25% = 1,50,000 * 1/5)
(-) Drawings = = (6000)
(-) Interest on Drawings = (90)
6000 * 12/100 * 1.5/12
90,535
Hence, the correct option is 1.
Question : Which of the following sets belongs to central tax?
Option 1: Excise duty, Sales tax, and Customs duty
Option 2: Excise duty, Customs duty, and Income tax
Option 3: Income tax, Customs duty, and House tax
Option 4: Customs duty, Entertainment tax, and Income tax
Correct Answer: Excise duty, Customs duty, and Income tax
Solution : The correct options are Excise duty, Customs duty, and Income tax.
Excise Duty is an example of an indirect tax imposed on domestic product manufacturing. The Central Excise Act, of 1944, is governed and imposed by the Central Government of India. Since 2017, it has been incorporated into the Goods and Services Tax (GST). Custom duty, also called import duty, is a tax levied on imports of products into a nation. To raise money and shield indigenous industries from international competition, the Centre imposes customs taxes. The 1962 Customs Act is in charge of it. Income tax is a direct tax imposed on the earnings of people, companies, and other entities. The Government of India imposes it.
Question : Two months prior to the festivals of Diwali, Trending House, a major retail establishment, offered a stock clearing. Newspapers, television, and radio are being used for promotion. Determine the marketing strategy being employed.
Option 1: Public Relations
Option 2: Personal Selling
Option 3: Advertising
Option 4: Sales Promotion
Correct Answer: Advertising
Solution : A technique for promoting a product called advertising. Hence, the correct option is 3.
Question : Assertion: Sales promotion techniques aim to create brand loyalty and long-term customer relationships.
Reason: Sales promotion techniques focus solely on short-term sales boosts and discounts.
Option 1: Both assertion and reason are true, and the reason is the correct explanation of the assertion.
Option 2: Both assertion and reason are true, but the reason is not the correct explanation of the assertion.
Option 3: Assertion is true, but the reason is false.
Option 4: Assertion is false, but the reason is true.
Correct Answer: Both assertion and reason are true, but the reason is not the correct explanation of the assertion.
Solution : The correct answer is (b) Both assertion and reason are true, but the reason is not the correct explanation of the assertion.
The assertion is true. Sales promotion techniques can indeed aim to create brand loyalty and long-term customer relationships. While they are often used to drive short-term sales, they can also be strategically designed to encourage repeat purchases and foster customer loyalty.
The reason is true, but it does not provide the correct explanation. While sales promotion techniques do often focus on short-term sales boosts and discounts, this does not mean they can't also be used to build brand loyalty and long-term customer relationships. Many sales promotions are structured to reward repeat purchases, engage customers, and establish a positive brand image over time. Therefore, the reason does not correctly explain the assertion.
