(Paper) CA-CPT Previous Year Question Paper "December - 2014", Set-1
(Paper) CA-CPT Previous Year Question Paper "December - 2014"
Session - 1
Part A – Fundamentals of Accounting
1. Deewali advance given to an employee is ___
a) Revenue Expenditure
b) Capital Expenditure
c) Deferred Revenue Expenditure
d) Not an Expenditure
2. The amount of depreciation charged under Annuity method _______
a) Remains Fixed for all the years
b) Decreases every year
c) Increases every year
d) Recalculated every year
3. Manu’s acceptance to Rishi of Rs.12,000 is retired two months before the due date at discount of 10% p.a. In the books of Rishi the journal entry will be _______
4. The debit balance in the bank columns of cash book indicates _______
a) Total amount withdrawn from bank
b) Total amount deposited in bank
c) Cash at bank d) Bank overdraft
5. Securities premium account cannot be utilized for _______
a) Financing the redemption of preference shares
b) Issue of bonus shares
c) Financing the premium payable on redemption of preference shares
d) Writing off preliminary expenses
6. At the end of the accounting year nominal accounts are _______
a) Balanced and transferred to the P & L A/c
b) Not balanced and transferred to P & L A/c
c) Not balanced and transferred to balance sheet
d) Balanced and transferred to balance sheet
7. Which accounting concept satisfy the valuation criteria _______
a) Going concern, Realisation, Cost
b) Going concern, Cost, Dual aspect
c) Cost, Dual aspect, Conservatism
d) Realisation, Conservatism, Going concern
8. Mukesh sold goods to Suresh at an invoice price of Rs. 6,00,000 at cost plus 25%. 1/4 th of the goods are lost in transit. Insurance claim of Rs.72,000 is received. What is the amount of abnormal loss to be debited to P & L a/c?
a) Rs.1,20,000
b) Rs.48,000
c) Rs.72,000
d) Rs.1,50,000
9. _____ is a non-historical cost method and is also called as Retail inventory method.
a) LIFO method
b) Adjusted selling price method
c) Average price method
d) Standard price method
10. In the absence of agreement between the partners, on the death of a partner, his legal representatives are entitled to ________.
a) Profits till death, JLP, Interest on capital, Revaluation profit, Goodwill
b) Profits till death, JLP, Interest on capital, Goodwill
c) Profits till death, Capital, JLP, Revaluation profit, Goodwill
d) Profits till death, Interest on capital, Goodwill
11. The cost of an Asset is Rs.1,20,000. The scrap value will be 25% at end of 10 years. If straight line method of depreciation is followed, the rate of depreciation is ______
a) 10%
b) 9%
c) 8.5%
d) 7.5%
12. Trial balance is a statement which shows ___________ of all accounts.
a) Debit or Credit balances
b) Balances and Totals
c) Positive and Negative balances
d) Opening and Closing balances\
13. Premium on redemption of debentures is _____ a/c.
a) Personal
b) Nominal
c) Real d) None of the above
14. Correct sequence as per the order of permanency?
(i) Trade Receivables
(ii) Patents
(iii) Machinery
(iv) Cash in hand
a) (i), (ii), (iii), (iv)
b) (ii), (iii), (i), (iv)
c) (i), (iii), (iv), (ii)
d) (iii), (ii), (i), (iv)
15. A & B are partners in a firm in the ratio of 5:3. C is admitted as a new partner. He gets 1/4 th of A’s share and 1/5 th of B’s share. The new profit sharing ratio is ______
a) 19:8:9
b) 20:15:9
c) 75:45:37
d) None of the above
16. If the shares are forfeited, the share capital account is debited by ______
a) Called up value of shares
b) Paid up value of shares
c) Face value of shares
d) Issue price of shares
17. If the goods are sent on Sale or Return basis frequently, the trader prepares ______
a) Sale or Return Journal with 4 main columns
b) Sale or Return Journal with 2 main columns
c) Cash book
d) Sale or Return ledger
18. A, B and C are partners in a firm in the ratio of 3:2:1. A retired and the firm received Rs.1,52,500 towards JLP, which is appearing in the balance sheet at Rs.1,80,000. Cash a/c is debited and JLP a/c is credited with Rs.1,52,500. What will be the treatment for the balance left in JLP a/c?
a) Credited to Partners current a/c’s in their profit sharing ratio
b) Debited to Revaluation a/c
c) Debited to Partners current a/c’s in their profit sharing ratio
d) Either (b) or (c)
19. The subscribed share capital of X Ltd. is Rs.90,00,000 divided in to shares of Rs.100 each. There were no calls in arrears till the final call was made. The final call was paid on 85,000 shares. The calls in arrears was Rs.1,25,000. The final call money per share is Rs. _______
a) 25
b) 20
c) 75
d) 125
20. Preference shares of Rs.9,00,000 are redeemable by issuing 3000 shares of Rs.100 each at Rs.140. The amount to be transferred to CRR is _________
a) Rs.6,00,000
b) Rs.4,20,000
c) Rs.5,00,000
d) Rs.3,80,000
21. Which of the following is not a foreign bill?
a) A bill drawn outside India and payable in India
b) A bill drawn in India and payable outside India
c) A bill drawn by a person resident outside India and payable outside India
d) None of the above
22. A contingent asset is ________
a) Usually disclosed in the financial statements
b) Usually disclosed in the notes to accounts
c) Usually disclosed in the reports of approving authority
d) Not disclosed anywhere
23. All the following statements are correct except
a) Trial balance is a statement and not an account
b) Trial balance is prepared at the end of the year
c) Trial balance is not a concluding proof of arithmetical accuracy
d) Trial balance is tallied if a transaction is posted twice in the ledger
24. When the record of transactions relating to Joint Venture are made in books of one coventurer, then the venturer records his share of investment in the joint venture by ________
a) Debiting to cash a/c
b) Crediting to cash a/c
c) Crediting to co-venturer’s personal a/c
d) No entry is required
25. In case of ______ the period of bill commences from the date of acceptance of the bill.
a) Bill after date
b) Bill after sight
c) Bill at sight
d) None of the above
26. A & B are partners in the ratio of 3:2. They admitted C as a new partner with Rs.35,000 against his capital and Rs.15,000 against goodwill. C could bring in Rs.45,000 only. What is the treatment, if the new profit sharing ratio is 1:1:1?
a) A & B will be credited by Rs.8,000 and Rs.2,000 respectively
b) A further amount of Rs.5,000 is credited to capital accounts of A & B
c) Both (a) & (b)
d) None of the above
27. The directors of K Ltd. made the final call of Rs.20 per share on 15-Sep-2014, indicating the due date of payment as 30-Sep-2014. Mr. F, a holder of 8,000 shares paid the call money on 15-Nov-2014. Calculate the interest on calls in arrears.
a) Rs.800
b) Rs.1,000
c) Rs.1,200
d) Rs.1,333
28. Any, Tom & Bob are partners in the ratio of 2:2:1. Tom dies in Feb, 2014. They have taken life insurance policies, the premiums of which are debited to P & L a/c. How much amount is paid to the legal representatives of Tom?
a) Rs.7,90,000
b) Rs.2,80,000
c) Rs.3,16,000
d) Rs.7,00,000
29. A trader has made a sale of Rs.75,500 out of which cash sales amounted to Rs.25,500. He showed trade receivables on 31-3-2014 at Rs.25,500. Which concept is followed by him?
a) Going concern
b) Cost
c) Accrual
d) Money measurement
30. M/S Daga & Co. installed a machinery on 01-01-2007 at a cost of Rs.5,00,000. Useful life of the machine is estimated at 10 years. Depreciation is charged under straight line method. In December, 2013, they found that the machine became obsolete and could not be used. It was sold for Rs.50,000. There will be _______.
a) Capital loss of Rs.1,50,000
b) Revenue loss of Rs.1,00,000
c) Capital loss of Rs.1,00,000
d) Revenue loss of Rs.1,50,000
31. The balances of M/s Nagarjuna Traders are as follows:
Capital Rs. 9,00,000; Computers Rs. 1,30,000;
Machinery Rs.4,50,000; Furniture Rs.1,50,000;
Investments Rs.3,00,000; Salaries Rs.2,10,000;
Sales Rs.16,00,000; Patents Rs.1,20,000;
Freight Rs.1,21,000; Purchases Rs.9,15,000;
Rent Rs.28,000; Cash in hand Rs.48,000;
Bank overdraft Rs.20,000; Creditors Rs.1,00,000;
Debtors Rs.1,48,000;
the total of trial balance is _______
a) Rs.26,40,000
b) Rs.24,99,000
c) Rs.26,20,000
d) Rs.25,12,000
32. Kiran, Bittoo and Shravan are partners in a firm. Kiran withdrew Rs.5,000 in beginning of every month, where as Bittoo and Shravan withdrew Rs.2,000 and Rs.3,000 respectively at the end of every month. Calculate interest on drawings at 10% p.a. for the year ended 31st March, 2014.
33. A company took a loan of Rs.10,00,000 from ICICI bank at an interest of 15% p.a. 14% debentures of Rs.15,00,000 were issued as collateral security. The bank is entitled to get interest on _________
a) Rs.10,00,000 only
b) Rs. 15,00,000 only
c) Both (a) & (b)
d) None of the above
34. Neelam sold goods for Rs.40,000 on 1-5-14 on a credit of 3 months to Kamala. Out of that 40% only could be received from her estate as she became insolvent. What is the amount of bad debt?
a) Rs.30,000
b) Rs. 24,000
c) Rs.28,000
d) Rs.25,000
5. A firm has reported a profit of Rs.1,47,000 for the year ended 31-3-2014 after taking into consideration the following items.
(i) The cost of an asset Rs.23,000 has been taken as an expense
(ii) The firm anticipated a profit of Rs.12,000 on the sale of an old furniture
(iii) Salary of Rs.7,000 outstanding for the year has not been taken into
account.
(iv) An asset of Rs.85,000 was purchased for Rs.75,000 and was recorded in the
books at Rs.85,000.
What is the correct amount of profit to be reported in the books?
a) Rs.1,47,000
b) Rs. 1,51,000
c) Rs.1,63,000
d) Rs.1,41,000
36. The credit balance as per cash book is Rs.15,000. Cheques amounting to Rs.2,750 were deposited in bank but not yet collected. Cheques of Rs.4,000 were issued, but not yet presented for payment. A dividend of Rs.250 was collected and a premium of Rs.1,500 was paid by bank under standing instructions. The balance as per Pass Book will be ________
a) Rs.15,000 Dr.
b) Rs. 17,750 Cr.
c) Rs.16,000 Dr.
d) Rs.14,250 Cr.
37. Goods costing Rs.50,000 were stolen. Insurance company accepted a claim of Rs.40,000. The appropriate journal entry is ___
a) Loss by theft a/c Dr. 50,000
To Sales a/c 50,000
b) Outstanding insurance claim a/c Dr. 40,000
Profit & Loss a/c Dr. 10,000
To Purchases a/c 50,000
c) Loss by theft a/c Dr. 40,000
To Purchases a/c 40,000
d) Profit & Loss a/c Dr. 10,000
To Purchases a/c 10,000
38. Depreciation fund given in the balance sheet is _________
a) Credited to old partners in their old profit sharing ratio
b) Debited to old partners in their old profit sharing ratio
c) Credited to all partners in the new profit sharing ratio
d) None of the above
39. In which of the following cases, accounting estimates are needed?
a) Employs benefit schemes
b) Impairment of losses
c) Inventory obsolescence
d) All of the above
40. The process of recording financial data upto trial balance is_______
a) Book keeping
b) Classifying
c) Summarising
d) Analising
41. Average profit = Rs.3,72,000
Normal rate of return = 12%
Total assets = Rs.68,00,000
Outside liabilities = Rs.42,00,000
Calculate the value of goodwill under capitalisation method.
a) Rs.5,00,000
b) Rs.6,00,000
c) Rs.7,00,000
d) Rs.8,00,000
42. M/s Ghulati & Sons made the following sales Sold to M/s Guptha &
Co. on credit
30 shirts @ Rs.180 per shirt
20 trousers @ Rs.100 per trouser
Sold furniture to M/s Shewag & Co. on credit Rs.8,000
Sold to M/s Jain & Co.
50 shirts @ Rs.190 per shirt for cash
Sold to M/s Cheap stores
13 overcoats @ Rs.490 per overcoat
Trade discount 10%, Cash discount 2%, Sales
tax 10% . The total of sales book is _____
a) Rs.13,632.30
b) Rs.22,849
c) Rs.23,828
d) Rs.14,632
43. X.Ltd issued 15% , 50,000 debentures of Rs.100 each at 10% premium, which are redeemable at 20% premium after 10 years. The loss on issue of debentures to be written off every year will be ______
a) Rs.50,000
b) Rs.1,00,000
c) Rs.2,00,000
d) Rs.1,50,000
44. A & B entered into a joint venture. A contributed Rs.2,00,000 for goods and Rs.15,000 expenses. B supplied goods of Rs.56,000 and paid expenses of Rs.2,000. B sold the goods for Rs.4,00,000. B is allowed a commission of 10%. Profit sharing is 3:2. How much amount B has to remit to A in full settlement of account?
a) Rs.2,67,200
b) Rs.2,65,200
c) Rs.1,67,200
d) Rs.2,00,000
45. On 01-04-2005, 5% cumulative preference share capital is Rs.2,00,000 Equity share capital is Rs.5,00,000. During the years 2004-05 and 2005-06 the dividend declarations totaled Rs.8,000 and Rs.16,000 respectively. What is the amount of dividend paid to the equity share holders for the year 2005-06?
a) Rs.4,000
b) Rs.5,000
c) Rs.10,000
d) Rs.12,000
46. Rohit carrying on real estate business sold a piece of land for Rs.4,00,00,000 (cost Rs.3,50,00,000) then the type of receipt is ______ nature and profit on sale is _______
a) Capital & transferred to capital reserve
b) Revenue & transferred to P & L a/c
c) Capital & transferred to P & L a/c
d) Revenue & transferred to general reserve
47. A bill receivable of Rs.2,500 is received from a customer in full settlement of Rs.2,700. On dishonor of this bill, the entry will be passed in ______
a) Purchases book
b) Bills receivable book
c) Journal proper
d) None of the above
48. A trader has credited certain items of sales on approval aggregating Rs.60,000 to Sales Account. Of these, goods of the value of Rs. 16,000 have been returned and taken into Inventories at cost Rs.8,000 though the record of return was omitted in the accounts. In respect of another parcel of Rs.12,000 cost being Rs.6,000 the period of approval did not expire on the closing date. Cost of goods lying with customers should be
a) Rs.12,000.
b) Rs.54,000.
c) Rs.6,000.
d) None of the above
49. Physical verification of inventory was done on 23rd June. The value of inventory was Rs.4,80,000. Following transactions took place between 23rd June and 30th June:
1. Out of goods sent on consignment, goods costing Rs. 24,000 were unsold.
2. Purchases of Rs.40,000 were made, out of which goods worth Rs.16,000 were
delivered on 5th July.
3. Sales were Rs.1,36,000, which include goods worth Rs.32,000 sent on approval.
Half of these goods were returned before 30th June, but no intimation is
available regarding the remaining goods. Goods are sold at cost plus 25%.
However, goods costing Rs.24,000 had been sold for Rs.12,000. You want to
determine the value of inventory on 30th June. You start with physical inventory
on 23rd June.
Cost of Normal Sales = _______.
a) 73,600
b) 80,000
c) 1,08,800
d) 99,200
50. Which of the following statements is/are false?
I. The term ‘depreciation’, ‘depletion’ and ‘amortization’ convey the same
meaning.
II. Provision for depreciation A/c is debited when provision for depreciation
A/c is created.
III. The main purpose of charging the profit and loss A/c with the amount of
depreciation is to spread the cost of an asset over its useful life for the
purpose of income determination.
a) Only I) above
b) Only II) above
c) Only III) above
d) All I) II) & III) above
51. On 27-03-14 four cheques of Rs.16,000, Rs.14,000, Rs.32,000, and Rs.23,000 were deposited in bank, out of which cheque of Rs.16,000 only was collected upto 31st March.Two cheques of Rs.23,000 and Rs.32,000 were collected on 4th April. An other cheque was not signed properly and was returned. What are the items to be taken in the B.R.S?
a) Rs.14,000, Rs.32,000, Rs.23,000
b) Rs.14,000, Rs.32,000, Rs.23,000, Rs.16,000
c) Rs.32,000, Rs.23,000
d) Rs.14,000
52. On 1st April, 2013, Rakesh started business with Rs.1,20,000 and took a loan Rs.50,000 from Ramesh. During the year earned a profit of Rs.20,000 and introduced further capital of Rs.30,000. His drawings during the year amounted to Rs.10,000. He paid Rs.10,000 to Ramesh during the year as part payment of loan on 31st March, 2014 his total assets amounted to Rs.2,30,000. Find out the amount of outside liabilities.
a) Rs.70,000
b) Rs.80,000
c) Rs.30,000
d) Rs.40,000
53. S Ltd. follows perpetual inventory system. On March 31 of every year, the company undertakes physical Inventory verification. On March 31, 2011, the value of Inventories as per the records differed from the value as per the physical Inventory. On scrutiny, the following differences were noticed:
Goods purchased for Rs.10,000 were received and included in the physical Inventory but no entry was made in the books. Goods costing Rs.30,000 were sold and entered in the books but the Inventory is yet to be delivered.
Goods worth Rs.5,000 are returned to the suppliers but is omitted to be recorded. If the inventory is valued in the books at Rs.1,50,000, the value of the physical inventory is
a) Rs.1,11,000
b) Rs.1,89,000
c) Rs.1,85,000
d) Rs.1,59,000.
54. Consider the following for Alpha Co. for the year 2009-10:
Cost of goods available for sale Rs.1,00,000
Total Sales Rs.80,000
Opening inventory of goods Rs.20,000
Gross profit margin 25%
Closing inventory of goods for the year 2009-10 was
a) Rs.80,000
b) Rs.60,000
c) Rs.40,000
d) Rs.36,000
55. Which of the following statements is false
a) Reserve is an appropriation of profits
b) Provision for tax still not paid is a reserve
c) Capital reserve is created out of capital profits
d) None of the above
56. Trial balance of a trader shows the following balances
Opening Inventory Rs.9600
Purchases less returns Rs.11850
Salaries Rs.3200
Wages Rs.750
Commission on Purchases Rs.200
Carriage outwards Rs.300
Sales Rs.24900
Closing Inventory Rs.3500
Carriage on purchases Rs.1,000
Gross profit will be
a) Rs. 5,000
b) Rs. 6500
c) Rs. 3250
d) Rs. 3200
Part B – Mercantile Laws
61. Unenforceable contract is ________
a) Void from the beginning
b) Becomes impossible due to subsequent impossibility
c) A contract which is unenforceable due to some technical defect
d) All of the above
62. Under the Indian Contract Act 1872, which of the following is not an essential element of a Valid Contract?
a) Intention to create legal relationship
b) Adequacy of Consideration
c) Certainty of Terms d) Free Consent
63. A voidable contract becomes void in case of __
a) Novation
b) Impossibility of performance
c) Restitution
d) Rescission
64. Status obligations arise:
a) In case of legal obligations
b) When the contract is made
c) Outside scope of the Indian Contract Act, 1872
d) Within the scope of the Indian Contract Act, 1872
65. Which of the following is true?
a) Indian Contract Act is a private law
b) Law takes cognizance of rights and duties of parties
66. Specific offer is made:
a) To public at large
b) To specific person
c) In general news paper
d) None of these
67. An offer is open for acceptance over a period of time. This is ________
a) Cross offer
b) Counter offer
c) Standing offer
d) Implied offer
68. Communication of acceptance is complete against the acceptor, when:
a) When the letter of acceptance posted
b) When he writes the letter
c) When the letter of acceptance reaches the offeror
d) None of the above
69. In a contract both legal & illegal parts are there. Which of the following is correct?
a) Only legal branch is enforced
b) Contract in fully void
c) Voidable at the option of aggrieved party
d) Only illegal branch enforced
70. Which of the following is not correct?
a) Consideration cannot be moved from third party
b) Consideration may be executed or executory
c) Consideration must be real
d) Consideration may be past also.
71. The famous case law i.e., Mohiri bibee Vs. Dharmodhas Ghosh is related to:
a) Majority of 21 years age
b) Minor’s agreement is void
c) Adequate consideration
d) All of the above
72. Which of the following is not correct?
a) The maxim “quid pro quo” means lawful consideration
b) A person entering into a contract must be major and sound mind
c) The maxim “Consensus-ad-idem” means that the parties to the contract must
agree up on same thing in same sense.
d) Consent is not deemed to be free when it is vitiated by misrepresentation.
73. Which of the following is not included in the term ‘fraud’?
a) Concealment of facts in good faith
b) When the court declares it as fraudulent
c) When it is made with an intention to deceive the other party
d) Promise made without any intention to perform
74. Quasi-contractual obligations arise by the principle of ______
a) Equity, Justice & Good conscience
b) Restitution
c) Rescission
d) None of the above
75. Which of the following is not true regarding Contingent contract?
a) Contingent contract depends on happening or non-happening of the future
uncertain event
b) Event must be collateral to the main contract
c) Not to be calculated
d) All of the above
76. Shyam and Sunil are joint promisors. Promisee discharged one of the joint promisor. Then ___
a) Both of them discharged from liability
b) Promise comes to an end
c) Sunil is not discharged from liability towards Shyam.
d) Sunil is discharged from liability
77. A teacher enters in to contract with a student to teach for the exams, but he dies before teaching. Now _______
a) Legal representatives are bound to perform
b) Becomes enforceable
c) Voidable
d) Contract comes to an end
78. In case of anticipatory breach of contract, the___
a) Contract automatically comes to an end
b) Promisor is discharged of his liability
c) Promisee has no remedy
d) Promisee can claim damages.
79. Suit for specific performance of contract can be instituted by the promisee, where _____
a) The promisor has breached the contract
b) The promisor has suffered abnormal loss
c) Damages are not an adequate remedy to promisee
d) Parties agree to go to the court for remedy
80. Date of compulsory dissolution for Partnership firm is the:
a) Date of order of Court
b) Date of applying for court
c) Date when firm closes its business
d) None of the above
81. A Minor in a Partnership is:
a) Personally liable
b) Having unlimited liability
c) Liable only when the firm is insolvent
d) None of the above
82. Expulsion of a partner can be exercised by:
a) Majority of partners
b) Good faith
c) Express agreement
d) All of the above
83. Which one of the following is the true test of partnership?
a) Mutual Agency
b) Profit sharing
c) Carrying on a business
d) Two or more persons
84. Dormant partner means______
a) Never takes part in business activities
b) Not liable for any act done by other partners
c) Will not share losses of the firm
d) Existence in partnership is invalid
85. Which of the following is covered under implied authority of a partner?
a) Submit dispute of the firm to arbitration
b) To acquire immovable property on behalf of firm
c) Borrowing money and pledging goods of the firm as a security for the same.
d) Enter into partnership on behalf of firm.
86. Which of the following is not a duty of a partner?
a) To indemnify for fraud
b) To dissolve the firm
c) To share losses
d) To account for any profit.
87. Holding out partner is based on the principle of________
a) Protecting public interest
b) Estoppel
c) Both a) & b)
d) All of the above
88. In which of the following cases, the firm is not dissolved by the order of the court?
a) Just and equitable ground
b) Persistent breach of agreement
c) Misconduct
d) Mutual agreement
89. Goods does not include:
a) Money and actionable claims
b) Growing Crops
c) Shares
d) None of the above
90. Auction sale can be subject to:
a) Reserve price
b) Market price
c) Any price
d) None of the above
91. Which of the following does not come under implied warranty?
a) Undisturbed possession of buyer
b) Disclosure of dangerous nature of goods
c) Non-existence of encumbrance
d) None of the above
92. Which of the following statements is not true?
a) In an agreement to sell, ownership will be transferred to buyer
b) In agreement to sell, loss will be with the seller
c) Both (a) & (b)
d) None of the above
93. Which of the following rights are not available to unpaid seller against the buyer?
a) Suit for price
b) Suit for damages
c) Suit for interest
d) Stoppage of goods in transit
94. A contracted with B to supply materials worth Rs.10,000 for interior design. The contract between A and B is _____
a) Contract of sale
b) Contract of work
c) Contract of work & labour
d) All of the above
95. Which of the following is not correct regarding appropriation of goods for unascertained goods?
a) The assent must be given either before or after appropriation
b) Buyer or seller can make appropriation.
96. Rights of unpaid seller does not include:
a) Stoppage of goods in transit
b) Claim for price
c) Suit for interest
d) None of the above
97. A hire purchaser of the goods:
a) Can resale the goods
b) Cannot use the goods
c) Has an option to return the goods (or) buy it
d) None of the above
98. Sale by Mercantile agent is not valid when:
a) The buyer is acting in ordinary course of business
b) When the buyer knows that the agent has no authority to sell
c) The buyer must act in good faith
d) The possession of the goods must be with the consent of the owner
99. Implied condition is not treated as implied warranty when:
a) Voluntary waiver of condition
b) Contract is in separable, and buyer accepted the part of the goods
c) Condition is not excused by law
d) All of the above
Answer Key
Part A – Fundamentals of Accounting
1. D 2. A 3. C 4. C 5. A 6. B 7. A 8. B 9. B 10. C 11. D 12. A 13. A 14. B 15. C 16. A 17. A 18. D 19. A 20. A 21. D 22. C 23. C 24. D 25. B 26. C 27. B 28. C 29. C 30. B 31. C 32. D 33. A 34. B 35. B 36. A 37. B 38. D 39. D 40. A 41. A 42. A 43. B 44. A 45. A 46. B 47. C 48. C 49. A 50. B 51. A 52. A 53. C 54. C 55. B 56. A 57. 58. 59. 60.
Part B – Mercantile Laws
61. C 62. B 63. D 64. C 65. A 66. B 67. C 68. C 69. A 70. A 71. B 72. A 73. A 74. A 75. C 76. C 77. D 78. D 79. C 80. A 81. D 82. D 83. A 84. A 85. C 86. B 87. B 88. D 89. A 90. A 91. D 92. A 93. D 94. C 95. A 96. D 97. C 98. B 99. C 100.