PREVIOUS YEAR SOLVED PAPERS - July 2018
6. Which of the following statements is not correct relating to consumerism?
- A
Consumerism is a manifestation of the failure of the business to guarantee and ensure consumer legitimate rights.
- B
The government does not have any role in consumer protection as it is the part of business organisations alone.
- C
The consumers should accept consumerism as a means of asserting and enjoying their rights.
- D
Consumerism evolution is not a set-back for marketing but rather points to the next stage in the evolution of enlightened marketing.
7. Which one of the following is not covered in the approach adopted by “Niti Aayog”?
- Option : A
- Explanation : Vision, Strategy and Three Year Action Agenda of NITI Aayog:
The 12th and last five year plan of India was completed on March 31, 2017. With this, the five year plans have become a thing of past. It was already announced that there will be no more five year plans. In August, 2017, NITI Aayog has come up with a new idea of planning for future development of India. The core idea is that India has still not abandoned the process of planning and the county still has planned development in action. However, the only difference is that the process of planning is entirely different. The first major difference is that instead of a single five year plan, the country will have three plans spread over three different time periods.
∎ First is a 15 year “Vision” that encompasses overall goals and objectives of the country for next 15 years.
∎ Second is a 7 year “Strategy” which lays the roadmap of development for next seven years dividing those goals and objectives into two parts.
∎ Third and Final is a “Three Year Action Agenda” which states the tasks and targets to be accomplished in next three years time frame, further dividing the strategy into two parts.
NITI Aayog was in process of working out the above plan since May, 2016. A draft was placed in third Governing Council meeting of NITI Aayog on April 23, 2017. Governing Council of NITI Aayog comprises of all States Chief Minister, so the central government including prime minister accord it much priority.
8. Assertion (A): Personal transactions of the owners of the business are not recorded in the books.
Reasoning (R): According to the business entity concept, each business enterprise is considered as an accounting unit separate from owners.
- Option : D
- Explanation : Financing Activities: The separate disclosure of cash flows arising from financing activities is important because it is useful in predicting claims on future cash flows by providers of funds (both capital and borrowings) to the enterprise. Examples of cash flows arising from financing activities are:
∎ Cash proceeds from issuing shares or other similar instruments;
∎ Cash proceeds from issuing debentures, loans, notes, bonds, and other short or long term borrowings; and
∎ Cash repayments of amounts borrowed.
Reporting Cash Flows from Operating Activities: An enterprise should report cash flows from operating activities using either:
∎ The direct method, whereby major classes of gross cash receipts and gross cash payments are disclosed; or
∎ The indirect method, whereby net profit or loss is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments, and items of income or expense associated with investing or financing cash flows.
10. Which one of the following statements is true about estimated costs and standard costs?
- A
Standard costs are based on scientific analysis and engineering studies while estimated costs are based on historical basis.
- B
Standard cost emphasis is on “what cost will be” while estimated cost emphasis is on “what cost should be”.
- C
Standard costs are more frequently revised compared to estimated cost.
- D
Estimated costs are more stable than standard costs.
