MCQOPTIONS
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MCQOPTIONS
This section includes 209 Mcqs, each offering curated multiple-choice questions to sharpen your Cost Accounting knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
A set of principles and expectations that are considered binding on any person who is member of a particular group is known as - |
| A. | Code of ethics |
| B. | Values |
| C. | Ethics |
| D. | None of the above |
| Answer» B. Values | |
| 2. |
The visual presentation of the ranking of work sites in a factory based on the number of accidents reported from each site is called |
| A. | Accidental Frequency Method |
| B. | Spot map method |
| C. | Incidence method |
| D. | Severity rate |
| Answer» C. Incidence method | |
| 3. |
Which of the following involves redesigning of equipment, machinery and material for the safe performance of the jobs? |
| A. | Safety engineering |
| B. | Safety campaigns |
| C. | Safety committee |
| D. | Safety training |
| Answer» B. Safety campaigns | |
| 4. |
When the people involved in the process comprehend unlikable results from their interactions with the environment, it is specifically called |
| A. | Time series |
| B. | Anticipatory stress |
| C. | Positive stress |
| D. | Negative stress |
| Answer» C. Positive stress | |
| 5. |
Under a contract the seller is required to insure the goods, deliver them to the shipping company, and arrange for their affreightment. |
| A. | F.O.B. Contract |
| B. | CLE Contract |
| C. | Ex-ship Contract |
| D. | FAS Contract |
| Answer» C. Ex-ship Contract | |
| 6. |
In case of conflict of jurisdiction of the courts, the incidence of a contract shall be governed by the law of the place where the : |
| A. | Contract is made |
| B. | Contract is performed |
| C. | Acceptor resides |
| D. | Proposer resides |
| Answer» B. Contract is performed | |
| 7. |
The test of .. is whether the person is capable of understanding the business concerned and its implications. |
| A. | Incapacity to contract |
| B. | Minority |
| C. | Soundness of mind |
| D. | Reciprocity |
| Answer» D. Reciprocity | |
| 8. |
Section 2(b) defines, "When the person to whom the proposal is made, signifies his assent thereto, the proposal is said to be accepted. A proposal when accepted becomes a/an |
| A. | Contract |
| B. | Agreement |
| C. | Promise |
| D. | Offer |
| Answer» D. Offer | |
| 9. |
When the consent of a party to a contract has been obtained by undue influence, fraud or misrepresentation, the contract is |
| A. | Legal |
| B. | Voidable |
| C. | Enforceable |
| D. | None of these |
| Answer» C. Enforceable | |
| 10. |
Each party to a contract is bound to perform his part of the obligation. After the parties have made due performance of the contract comes to an end. In such a case the contract is said to be discharged : |
| A. | By breach of contract |
| B. | By impossibility of performance |
| C. | By agreement and novation |
| D. | By performance of contract |
| Answer» E. | |
| 11. |
When parties enter into a contract on telephone the contract becomes complete at the place where acceptance is heard by the proposer. This has been provided |
| A. | In no section of Indian Contract Act but so decided by the Supreme Court |
| B. | In section - 2 |
| C. | In section 3 |
| D. | In section 4 |
| Answer» B. In section - 2 | |
| 12. |
The law regarding Novation, i.e., where a new contract is substituted in place of the old one by means of an agreement between the parties to a contract or between them and a third party, is contained in |
| A. | Sec. 62 |
| B. | Sec. 52 |
| C. | Sec. 64 |
| D. | Sec. 65 |
| Answer» B. Sec. 52 | |
| 13. |
Where the parties to a contract have agreed that a certain sum of money would be paid in case of breach of contract, the Court will ensure that |
| A. | The exact amount mentioned in the contract is paid to the injured party |
| B. | An amount not exceeding the stipulated amount is awarded |
| C. | Reasonable compensation not exceeding the amount stipulated is awarded |
| D. | A sum exceeding the amount stipulated is awarded |
| Answer» D. A sum exceeding the amount stipulated is awarded | |
| 14. |
When one of the parties to the contract has performed its part of the promise which constitutes the consideration for the promise by the other side, it is known as |
| A. | Past consideration |
| B. | Executed consideration |
| C. | Executory consideration |
| D. | Future consideration |
| Answer» C. Executory consideration | |
| 15. |
Where there is a contract for the sale of specific goods, and the goods perish before the making of contract, without the knowledge of the seller, the contract is |
| A. | voidable at the option of the buyer |
| B. | void |
| C. | illegal |
| D. | unenforceable |
| Answer» C. illegal | |
| 16. |
A contract which is vitiated by undue influence is declared as which one of the following by the Indian Contract Act? |
| A. | Invalid |
| B. | Void |
| C. | Illegal |
| D. | Voidable |
| Answer» E. | |
| 17. |
'A' promises to paint a picture for 'B' by a certain day at a certain price. 'A' dies before that day. In this situation, the contract |
| A. | Cannot be enforced as it becomes void due to personal incapacity |
| B. | Will be performed by the legal representative of 'A', who is bound by law to perform it |
| C. | Can be performed by an agent of 'A' |
| D. | Can be performed by a third person on behalf 'A' |
| Answer» B. Will be performed by the legal representative of 'A', who is bound by law to perform it | |
| 18. |
Can a letter of acceptance to a Proposer, not correctly addressed, although posted, be said to have been "Put in a course of transaction" to him? |
| A. | Yes |
| B. | No |
| C. | Depends |
| D. | Any of the above |
| Answer» C. Depends | |
| 19. |
Which section of Law of Contract defines, "A proposal may be revoked at anytime, before the communication of its acceptance is complete as against the proposer, but not afterwards." |
| A. | Section 5 |
| B. | Section 4 |
| C. | Section 6 |
| D. | Section 7 |
| Answer» B. Section 4 | |
| 20. |
Where a particular mode of communication of acceptance is not prescribed and the parties are not in each other's presence, the most authentic mode of communication of acceptance is the |
| A. | Telephone |
| B. | Telegraph |
| C. | Wireless |
| D. | Letter |
| Answer» E. | |
| 21. |
Under the Indian Contract Act some persons have the duty similar to that of a bailee but under which of the following sections: |
| A. | Section 69 |
| B. | Section 70 |
| C. | Section 71 |
| D. | Section 72 |
| Answer» D. Section 72 | |
| 22. |
The partners authority to act for the firm and to bind their co-partners continues even after the dissolution of the firm: |
| A. | To wind up the affairs of the firm |
| B. | To complete the unfinished transactions |
| C. | Both of above |
| D. | None of the above |
| Answer» D. None of the above | |
| 23. |
Where a firm constituted for a fixed term continues to carry on business after the expiry of the said term, the mutual rights and duties of the partners will |
| A. | Be decided by the Courts |
| B. | Be decided upon by the working partners |
| C. | Be similar as that of partnership at Will |
| D. | Be extinguished |
| Answer» D. Be extinguished | |
| 24. |
Where the maximum number of partners in a firm carrying on banking business exceeds ten and in any other firm exceeds twenty, then the partnership becomes a: |
| A. | Unlawful partnership |
| B. | Illegal association |
| C. | Limited liability partnership |
| D. | Large partnership |
| Answer» C. Limited liability partnership | |
| 25. |
Express offers and acceptances may be proved by the agreement between the parties but implied offers can be proved only by |
| A. | The words |
| B. | The conduct |
| C. | Circumstantial evidence |
| D. | Both (b)&(c) |
| Answer» E. | |
| 26. |
A promises B to pay ` 100 if it rains on Monday, and B promises A to pay ` 100 if it does not rain on Monday. This agreement is |
| A. | a valid agreement |
| B. | a voidable agreement |
| C. | a wagering agreement |
| D. | an illegal agreement |
| Answer» D. an illegal agreement | |
| 27. |
In cases, where a proposal and its acceptance are not made by words and are inferred from the conduct of the parties. They are known as |
| A. | Implied offers |
| B. | Expressed offers |
| C. | Specific offers |
| D. | General offers |
| Answer» B. Expressed offers | |
| 28. |
A leaves a firm doing a particular business in Mumbai. He agrees with the other partners of the firm not to start a similar business as that of the firm in and around Mumbai for 3 years. This agreement is |
| A. | Valid |
| B. | Immoral |
| C. | Illegal |
| D. | Void |
| Answer» B. Immoral | |
| 29. |
X leaves a firm doing a particular business in Delhi. He agrees with other partners of the firm not to start a similar business as that of the firm in Delhi for 2 yea` This agreement is |
| A. | Void |
| B. | Valid |
| C. | Voidable at X's option |
| D. | Invalid |
| Answer» C. Voidable at X's option | |
| 30. |
If a person accepts a lesser sum of money than what was contracted for in discharge of the whole debt, it is known as : |
| A. | Waiver |
| B. | Rescission |
| C. | Alteration |
| D. | Remission |
| Answer» E. | |
| 31. |
Which of the following types of contracts are generally termed uberrimae fidei contracts? 1. Insurance contracts. 2. Contract for purchase of car. 3. Partnership contracts. 4. Quasi-contract. Select the correct answer using the code given below: |
| A. | 1,3 and 4 |
| B. | 1 and 3 |
| C. | 1,2 and 4 |
| D. | 2, 3 and 4 |
| Answer» B. 1 and 3 | |
| 32. |
In Indian Law consideration must have been done at the desire of the promisor, if it is done at the instance of a third party or without the desire of the promisor, it is |
| A. | Consideration |
| B. | Not consideration |
| C. | Offer |
| D. | Promise |
| Answer» C. Offer | |
| 33. |
A promises B not to carry on a similar business as that of B if B pays him a certain amount. B pays the money but A continues to carry on the business. B can |
| A. | Do nothing |
| B. | Compel A to stop the business |
| C. | Get him imprisoned for fraud |
| D. | Sue A for damages |
| Answer» B. Compel A to stop the business | |
| 34. |
A promises to paint a picture for B by a certain day at a certain price. A dies before the promised day. Which one of the following is the correct legal position |
| A. | The agreement becomes unlawful |
| B. | The agreement lapses for both the parties |
| C. | The agreement becomes voidable at the option of A's legal representative |
| D. | None of these |
| Answer» C. The agreement becomes voidable at the option of A's legal representative | |
| 35. |
Essence of . lies not in the dissimilarity of the terms between the two contracts but in the intention of the parties to supersede the old by the new. |
| A. | Acceptance |
| B. | Offer |
| C. | Novation |
| D. | Proposal |
| Answer» D. Proposal | |
| 36. |
Under Sec.2(4) of the Sale of Goods Act, a delivery order enabling a person to obtain delivery on payment of price is |
| A. | Deemed as a Document of Title |
| B. | Not a Document of Title |
| C. | Document enabling title to Goods |
| D. | Not a valid document at all |
| Answer» B. Not a Document of Title | |
| 37. |
Where there is a contract for the sale of ..goods, no property in the goods is transferred to the Buyer, unless and until the goods are ascertained. |
| A. | Future |
| B. | Unascertained |
| C. | Contingent |
| D. | Specific |
| Answer» C. Contingent | |
| 38. |
If, after the arrival of goods at their destination, Carrier or other Bailee acknowledges to Buyer or his agent that he holds goods on his behalf, and continues possession of the goods, the transit |
| A. | is at an end |
| B. | is deemed to continue |
| C. | is not at an end |
| D. | is not affected at all |
| Answer» B. is deemed to continue | |
| 39. |
If both the parties to a contract believe in the existence of a subject, which infact does not exist, the agreement would be |
| A. | Unenforceable |
| B. | Void |
| C. | Voidable |
| D. | None of these |
| Answer» C. Voidable | |
| 40. |
If, after the arrival of Goods at their destination, Carrier or other Bailee acknowledges to Buyer or his agent that he holds goods on his behalf, and continues possession of the goods, the transit is at an end |
| A. | even if the buyer indicates further destination for the goods to the Carrier. |
| B. | only when the buyer takes delivery of the goods |
| C. | only when the buyer is solvent |
| D. | only when the seller's agent takes delivery of the goods |
| Answer» B. only when the buyer takes delivery of the goods | |
| 41. |
Where there is an agreement to sell goods on the price fixed by a third party on valuation, but the third party refuses to do so, and the buyer appropriates part of the goods delivered to him. |
| A. | the buyer shall pay reasonable price |
| B. | the agreement is avoided |
| C. | the buyer shall pay market price |
| D. | none of the above |
| Answer» B. the agreement is avoided | |
| 42. |
Where under a contract of sale the property in goods has passed to Buyer and Buyer wrong fully neglects or refuses to pay the price, the Seller can sue the Buyer for |
| A. | payment of price of goods |
| B. | damages for non-acceptance of goods |
| C. | payment of other charges like insurance, forwarding etc. |
| D. | all of the above |
| Answer» E. | |
| 43. |
Where under a contract of sale, the Buyer wrong fully neglects or refuses to pay the price, the Seller can sue the Buyer for the price of goods, if the property in goods - |
| A. | has not passed to buyer |
| B. | has passed to buyer |
| C. | either (a) or (b) |
| D. | remains with the seller |
| Answer» C. either (a) or (b) | |
| 44. |
An agreement made under mistake of fact, by both the parties, forming the essential subject matter of the agreement is: |
| A. | Void |
| B. | Voidable |
| C. | Valid |
| D. | Unenforceable |
| Answer» B. Voidable | |
| 45. |
When under a contract of sale, buyer has paid the price, but seller neglects to deliver goods, buyer has a right to claim interest on the amount of price. The buyer can claim interest |
| A. | only when he can recover the price |
| B. | only when he is entitled to claim damages |
| C. | either (a) or (b) |
| D. | both (a) and (b) |
| Answer» E. | |
| 46. |
After a transaction has ripened into a contract, does it require the consent of both parties to revoke or modify it? |
| A. | Yes |
| B. | No |
| C. | Not in normal cases |
| D. | Depends |
| Answer» B. No | |
| 47. |
A, B and C jointly promise to pay ` 3,000 to X. In the absence of express agreement to the contrary, X can bring an action against: |
| A. | Any two of them only |
| B. | All of them together |
| C. | Any one of them, at this choice |
| D. | Either (b) or (c) |
| Answer» E. | |
| 48. |
'Consideration is the price for which the promise of the other is bought, and the promise thus given for the value is enforceable.' This definition of consideration is |
| A. | By Pollock |
| B. | By Justice Patterson |
| C. | By Cheshire and Fifoot |
| D. | In section 2(d) of the Contract Act |
| Answer» B. By Justice Patterson | |
| 49. |
A master asks his servant to sell his cycle to him at less than the market price. This contract can be avoided by the servant on grounds of: |
| A. | Coercion |
| B. | Undue influence |
| C. | Fraud |
| D. | Mistake |
| Answer» C. Fraud | |
| 50. |
When a person incurred expenses of ` 5000 for the necessaries supplied to the minor, he can recover the said amount from the |
| A. | Minor personally |
| B. | Property of the minor |
| C. | Property of his guardian |
| D. | None of these |
| Answer» C. Property of his guardian | |