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PSS01/PCO01 Preparatory Course in Social Sciences/Commerce June 2002
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Test Papers / Previous Question Papers of IGNOU PSS01/PCO01 Preparatory Course in Social Sciences/Commerce June 2002

Term-End Examination
Bachelor's Prepartory Programme (B.P.P.)

(For Non 10+2)

PSS-01/PCO-01:Preparatory Course in Social Sciences/
Preparatory Course in Commerce

June, 2002

Time : 120 Minutes

General Instructions :

1. All questions are compulsory.

2. The Question Paper consists of two sections as under. Each section consists of 50 questions, each of which carries one mark.
Section A - Preparatory Course in Social Sciences (PSS-01) Questions 1-50
Section B - Preparatory Course in Commerce (PCO-01) Questions 1-50

3. Those students who wish to pursue B.A. Degree will attempt Section A while the students who wish to pursue B.Com. Degree will attempt Section B.

4. Each question has four alternatives one of which is correct. Write the SI.No. of you correct alternatives/answers below the corresponding question number in the answer sheet and then mark the rectangle for the same number in that column. If you find that none of the given alternatives is correct then write 0 and mark in column 0.

5. Do not waste time in reading the whole question paper. Go on solving questions one by one. Yoy may come back to the left out questions, if you have time at the end.

SECTION A

PSS-01 : Preparatory Course in Social Sciences

1. Man becomes a member of society

(1) through the process of socialization
(2) because of organic view
(3) due to the growth and development
(4) None of the above

2. The scientific nature of social sciences is reflected through the use of the methods like

(1) observation
(2) objectivity
(3) measurement
(4) All of the above

3. The relation between Sociology and History can be explained by

(1) considering interrelationship between social phenomena and chronological accounts of events
(2) studying the emergence of the discipline of History and Sociology
(3) Both of the above
(4) None of the above

4. The study of culture includes the study of

(1) beliefs and habits
(2) art and knowledge
(3) customs and laws
(4) All of the above

5. Approaches to social stratification involve the use of
(1) Weberian approach
(2) Marxian approach
(3) Multi-demensional approach
(4) All of the above

6. Separate electorate was first introduced in India by the Act of

(1) 1858 (2) 1909
(3) 1919 (4) 1935

7. The basic value of modern Indian society are

(1) brotherhood of man and loyalty to the nation
(2) individual's right to freedom and equal opportunity for all
(3) respect for all religions
(4) All of the above

8. Different forms of marriage are put as

(1) Monogamy and Polygamy (2) Endogamy and Exogamy (3) Primary and Secondary marriage (4) Both (1) and (2) above

9. According to kar Marx, social stratification is determined by

(1) the system of relatins based on production
(2) cultural system of the society
(3) consumption styleof rulers
(4) None of the above

10. The fundamental purpose of the League of Nations was

(1) to create goodwill and cooperation among the nations
(2) maintain international peace and security
(3) implement a uniform monetary system in the world
(4) Both (1) and (2) above

11. Members of the United Nations are pledged to act for

(1) peace, security and freedom
(2) understanding, prosperity, health and deucation
(3) acting against war, aggregation and enslavement
(4) All of the above

12. The term National Income refers to teh sum of the value of all goods and services produced in a country during

(1) all the previous years (2) past six months
(3) previous year (4) either (2) or (3) above

13. Mining activities are treated as

(1) primary acitvities (2) secondary activities
(3) service sector activities (4) All of the above

14. Two main classes in feudal society were

(1) Dukes and Barons (2) Kinghts and Pricsts
(3) Lords and Knights (4) Lords and Serfs

15. Economic Planning was introduced under

(1) capitalist societies (2) socialist societies
(3) the guidance of Church (4) Both (2) and (3) above

16. The term Industrial Revolution refers to

(1) increasing use of science for development of new technologies
(2) use of machines in big factories
(3) overthrow of monarch by industrialists
(4) Both (1) and (2) above

17. The term 'collective conscience' means

(1) the value system formulated by educational institutions
(2) the feeling that society is watching the indivisual
(3) sense of making good profit from colective farming
(4) None of the above

18. Divorce is increasing in society due to

(1) increasing economic independence of women
(2) spread of liberal ideas and values of individualism
(3) aggressive implementation of family planning programme
(4) Both (1) and (2) above

19. The meaning of social norms, defined by Sociology, can be expressed as

(1) folkways, mores and morality
(2) enacted laws and customary laws
(3) Directive Principles and Fundamental Rights
(4) Both (1) and (2) above

20. The Indian Federation has the provision of

(1) distribution of subjects between the national and state governments
(2) distribution of subjects between the national & local governments
(3) distribution of subjects through separate Constitution to be developed by each regional government
(4) All of the above

21. The term of a member of Rajya Sabha of Indian Parliament lasts upto

(1) 3 years (2) 5 years
(3) 6 years (4) as long as the Vice-President desires

22. The members of the Legislative Assembly are chosen by

(1) the political party in power at the national level
(2) the President of India in consultation with the Chief Justice of the Supreme Court
(3) the government of the state in consultation with the Chief Minister
(4) direct election from territorial constituencies in the states

23. The Supreme Court India has jurisdiction to entertain a writ petition from a party which complains about the

(1) violation of a Fundamental Right
(2) violatio of a Directive Principle
(3) violation of an election norm
(4) All of the above

24. Human capital refers to

(1) physical assets possessed by human beings
(2) financial assets under the control of the World Bank to clone the human beings
(3) skills acquired by individuals through investment in education and training
(4) a place where all the people of the world gather to exchange their general knowledge

25. The difference between money market and capital markets are made in the sense of

(1) making available organized and unorganized credits
(2) circulating information on bonds and equities
(3) dealing with short-term and long-term credits
(4) None of the above

26. A private limited company

(1) can raise funds from general public
(2) may be at the risk of losing personal properties in case of bad busines
(3) cannot sell shares by one member without the agreement of the others
(4) Both (2) and (3) above

27. The main advantage of multinational corporations for the host countries is

(1) economies of scale benefits
(2)generation of employment in developing countries
(3) marketing of products in new areas
(4) All of the above

28. Cultural diffustion means

(1) inclusion of cultural items in technical education
(2) spread of cultural items beyond the boundaries of a cultural community
(3) inclusion of compulsory dressing code
(4) All of the above

29. Three main methods of conflict resolution are

(1) imposition of will of the victor, co-option and exile of a party
(2) encouragement of competition
(3) co-option, accommodation and cooperation among the involved people
(4) All of the above

30. The term 'universal adult franchise' is used in India to give

(1)voting right to all adult people of age 18 years and above
(2) voting right to all adult people of age 25 years and above
(3) voting right to all adult people with 21 years of age even with non-inclusion of the name in the electoral roll
(4) None of the above

31. The Election Commission members are appointed by the

(1) Chief Justice of the Supreme Court in consultation with the Prime Minister of India
(2) Prime Minister of India in consultation with the registered political parties
(3) Voters of India
(4) President of India

32. An important distinguishing feature of the Parlimentary system from the Presidential one is that

(1) the executive is responsible to the legislature
(2) the party in power maintains a friendly relation with the opposition
(3) the President and Vice-President are elected directly by the people
(4) All of the above

33. Habeas Corpus means

(1) an order enforcing duties
(2)an order for dealing the act, which lies outside a law court's jurisdiction
(3) an order regarding the question whether a person is holding public office legally
(4) an order to produce an arrested person before the court

34. A consumer pays a price for a commodity because

(1) she has to spend the money
(2) the next time seller may not turn up on time
(3) she expects to derive utility from its consumption
(4) All of the above

35. Which of the following is an example of saving ?

(1) Spending on clothes
(2) Buying National Saving Certificates
(3) Obtaining a character certificate
(4)All of the above

36. Price are determined by the forces of 'demand and supply' is a true statement

(1) only if rationing is imposed
(2) only when the economy is controlled by the government
(3) only when market economy operates without interference
(4) in all the above cases

37. Even though the Indian Constitution gave women a position of equality with men matters of work and pay, property and inheritance, their disadvantaged position continues due to

(1) widespread illiteracy
(2) continued support of the society to practices like child marriage and caste system
(3) change of priorities of social reform movements
(4) Both (1) and (2) above

38. Why did the Indian National Congress start to take greater interest in the world affairs during the Independence movement ? (1) Rising Faseist forces would have undermined the cause of Independence of India
(2) Popular movements for democracy initiated by the socialists would have weakened the hold of imperialists over India
(3) The strateg of its top leaders to emerge as world leaders
(4) None of the above

39. Jallianwala Bagh massacre took place at

(1) Chandigarh (2)Ambala
(3) Karachi (4) Amritsar

40. A major cause of the emergence of regional tendencies in independent India may be ascribed to

(1) uneven distribuion of industrial establishments
(2) unplanned growth of educational institutions
(3) formation of the states on the basis of linguistic considerations
(4) None of the above

41. The Indian National Congrese adopted the resolution of Complete Independence as its goal in the year

(1) 1928 (2) 1929
(3) 1930 (4)1931

42. Which one of the following effects cultural changes in society immediately?

(1) Discovery and invention
(2) Emergence of non-governmental ogranization
(3) Growth of population
(4) None of the above

43. Demography indicates

(1) the study of geography
(2) the study of popultion and factors related to it
(3) the study of functioning of Indian democracy
(4) All of the above

44. In the Indian context, the term, 'Westernisation', refers to

(1) the changes that were brought about in the Indian culture as a result of British rule
(2) entrance of multinational corporations in the country and offering cheaper dresses
(3) availability of TV channels of the USA
(4) All of the above

45. An important factor obstructing the process of secularization in India is

(1) caste rigidity
(2) rise of fundamentalist forces
(3) slow growth of national income
(4) Both (1) and (2) above

46. The term 'social justice' can be interpreted to mean availability of

(1) adequate means of livelihood for all citizens
(2) prevalence of adequate social measures
(3) subsidized fertilizer to farmers
(4) Both (1) and (2) above

47. Democratisation is necessary for

(1) the participation of people in the decision-making process at all levels
(2) emergence of a party to provide a stable currency system
(3) peaceful resolution of conflicts
(4) All of the above

48. It is often pointed out that British colonialism in India was reponsible for

(1) backwardness of the Indian agriculture
(2) less investment of foreign capital
(3) drainage of wealth
(4) All of the above

49. Nehru was influenced by the time bound planning of

(1) USA (2) USSR
(3) Britain (4) China

50. Gandhi visualised

(1) federation of village republics
(2) self-reliant village economy
(3) decentralisation of power
(4) All of the above

SECTION B

PCO-01: Preparatory Course in Commerce

1. By double entry eystem of book-keeping we mean

(1) entering the transactions in two sets of books
(2) entering the transactions in two different dates
(3) entering the two aspects of the transactions
(4) All of the above

2. Capital Account is a

(1) Real Account
(2) personal Account
(3) Current Account
(4) Intangible Account

3. Discount Account is neither a

(1) Personal Account nor a Real Account
(2) Nominal Account nor a Real Account
(3) Nominal Account nor a Personal Account
(4) All of the above

4. When do we analyse the transaction in terms of debit and credit?

(1) At the time of posting
(2) At the time of original entry
(3) At the time of casting
(4) At the time of rectification

5. Which of the following is both journal and ledger ?

(1) Day Book
(2) Sales Book
(3) Petty cash Book
(4) Cash Book

6. Bills Payable Book is a part of

(1) Journal
(2) Ledger
(3) Trial Balance
(4) Profit and Loss Account

7. Debiting an item leads to an

(1) increase in an asset
(2) increase in a liability
(3) increase in capital
(4) All of the above

8. Crediting an item leads to a/an

(1) increase in an asset
(2) increase in a liability
(3) decrease in capital
(4) All of the above

9. Left side of asset account is for

(1) recording its decreases
(2) recording its increases
(3) recording its decreases and increases
(4) recording rectifying entries

10. Which of the follwing accounts is a personal account?

(1) Ram's account
(2) Wages outstanding account
(3) Bank account
(4) All of the above

11. Cash received from Tilak as rent wil be credited to

(1) Cash Account
(2) Rent Account
(3) Tilak Account
(4) Capital Account

12. Under which system of accounting are credit transactions not recorded?

(1) Cash system
(2) Single entry system
(3) Double entry system
(4) Mercantile system

13. Which of the following rules of journalising is applicable to personal accounts ?

(1) Debit what comes in ,credit what goes out
(2) Debit the receiver, credit the giver
(3) Debit all losses, credit all gains
(4) Debit what comes in, credit the giver

14. Which of the following transactions will be recorded in the Purchases Book?

(1) Cash purchase of goods
(2) Credit purchase of goods
(3) Credit purchase of furniture
(4) All of the above

15. The transactions of non-financial nature are not recorded in books of account as per

(1) Cost concept
(2) Money Measurement concept
(3) Matching concept
(4) Going Concern concept

16. A business has the liabilities of Rs. 45,000 and owner's equity is Rs. 30,000. Its assets will be

(1) Rs. 75,000
(2) Rs. 45,000
(3) Rs. 15,000
(4) Rs. 30,000

17. Satish, an owner of the business, withdrew cash for personal use from the business. This will be debited to

(1) Satish's Account
(2) cash Account
(3) Drawings Account
(4) Capital Account

18. Debit side of Three Column Cash Book is used for recording

(1) all receipts, both in cash and by cheque, and discount received
(2) all receipts, both in cash and by cheque, and discount allowed
(3) all receipts in cash and discount allowed and received
(4) all receipts by cheque and discount allowed and received

19. Discount recorded on the debit side of the Cash is the

(1) cash discount allowed
(2) cash discount received
(3) trade discount allowed
(4) trade discount received

20. The debit balance of Cash Account means

(1) Profit
(2) Loss
(3) cash at Bank
(4) Cash in hand

21. A brief summary of the transaction given after its recording in journal is called

(1) Statement
(2) Ledger folio
(3) Narration
(4) casting

22. Trial Balance is the statement that consists of debit and credit balances of

(1) All accounts except real accounts
(2) All accounts except nominal accounts
(3) All accounts except personal accounts
(4) All accounts except closing stock

23. Firm's bank account shows a credit balance of Rs. 200. It means

(1) Firm has cash in hand
(2) Firm has cash at bank
(3) Frim has an overdraft
(4) Firm has not profit

24. "The factory of a firm is damaged by fire" is na example of

(1) Revenue Loss
(2) Revenue Expenditure
(3) Capital Loss
(4) Capital Expenditure

25. A customer's cheque of Rs. 5,000 returned dishonoured. It will be recorded in

(1) Cash Book
(2) Sales Book
(3) Bills Receivable Book
(4) Returns Inwards Book

26. The Net profit of a firm is Rs. 84,000. Manager is to be allowed commission at 5% on net profit after charging such commission. His commission will be

(1) Rs. 2,100
(2) Rs. 4,200
(3) Rs. 3,890
(4) Rs. 4,000

27. Which of the following transactions will be recorded in Journal Proper ?

(1) Purchase of patent on credit
(2) Purchase of plant on cash
(3) Sale of goods on credit
(4) sale of ols furniture on cash

28. An expenditure is a capital expenditure when

(1) it is the personal expenditure of the owner
(2) it is related to liquid assets
(3) it is intended to benefit the future perios also
(4) All of the above

29. A receipt is called a revenue receipt when

(1) it is related to routine activity of the business
(2) it is credited to capital account
(3) it decreses the tax liability
(4) All of the above

30. A written note containing an unconditional undertaking signed by the maker to pay a certain sum of money only to or to the order of a certain person or to the bearer of that instrument is called

(1) Debit Note
(2) Credit Note
(3) Promissory Note
(4) Bank Note

31. Assets which are regularly used in the business and are not meant for resale are called

(1) Current assets
(2) Fixed assets
(3) Fictitious assets
(4) Liquid assets

32. Goodwill, Patents and Trademarks are the examples of

(1) Both fixed assets and tangible assets
(2) Both current assets and tangible assets
(3) Both fixed assets and intangible assets
(4) Both current assets and intangible assets

33. Which of the following are added to capital while preparing Balance Sheets ?

(1) Net Profit
(2) Cash at bank
(3) Cash in hand
(4) All of the above

34. Some of the fixed assets which get exhausted in course of time are called

(1) Current assets
(2) Fictitious assets
(3) Intangible assets
(4) Wasting assets

35. Petty Cash Book is

(1) a copy of single column Cash Book
(2) a copy of triple column Cash Book
(3) another Cash Book for recording expenses involving small amounts
(4) a Cash Book recording receipts only

36. Wages and slaries are shown in

(1) Trading Account
(2) Profit and Loss Account
(3) Both in Trading Account and Profit and Loss Account
(4) Manufacturing Account

37. Which of the fiollowing is shown in Profit and Loss Account ?

(1) Carriage Inwards
(2) Carriage Outwards
(3) Freight Inwards
(4) All of the above

38. Income Tax paid in case of a proprietary concern is

(1) deducted from the capital
(2) shown in Profit and Loss Account as expense
(3) deducted from Gross Profit
(4) debited to Profit and Loss Account and deducted from capital

39. Balance Sheet

(1) is a statement of assets and liabilities
(2) is prepared for a particular period
(3) includes all nominal accounts
(4) All of the above

40. Prepaid expenses

(1) are expenses paid for a future period
(2) are expenses which have become due but have not been paid
(3) are debited to Trading Account
(4) relate to direct expenses only

41. Interest on capital

(1) is debited to Profit and Loss Account only
(2) added to capital only
(3) deducted from capital only
(4) debited to Profit and Loss Account and also added to capital

42. Which of the following errors is an error of principle ?

(1) Rs. 1,000 spent on extension of building debited to wages account
(2) entry of Rs. 80 debited to Umesh as Rs. 98
(3) Total of Purchase Book undercast by Rs. 800
(4) All of the above

43. Which of the following errors is revealed by the Trail Balance ?

(1) Wrong amount entered in the book of original entry
(2) Wrong amount entered in a ledger account
(3) Complete omission of an entry from the book of original entry
(4) All of the above

44. Machinery worth Rs. 800 sold to Sanjeev was wrongly entered in Sales Book. The rectifying entry will be

(1) Debit Sales account and credit Machinery account
(2) Debit Sales account and credit sanjeev's account
(3) Debit Sanjeev's account and credit Machinery account
(4) Debit Sanjeev's account and credit Sales account

45. In order to calculate the due date of a Bill of Exchange how many days of grace are added ?

(1) One
(2) Two
(3) Three
(4) Five

46. The person who writes the Bill of Exchange is generally

(1) the creditor
(2) the debitor
(3) the endorsor
(4) the owner

47. If the due date of a Bill of Exchange fails on a public holiday or Sunday, then the due date will be

(1) next day
(2) a day before the due date
(3) three days before the due date
(4) three days after the due date

48. Commerce refers to

(1) Trade
(2) Trade and aids to trade
(3) Industry
(4) Industry and trade

49. Owner's equity means

(1) Capital
(2) Capital and creditors equity
(3) capital and assets
(4) Liabilities

50. The purpose of preparing Balance Sheet is

(1) to know the financial position of the business
(2) to find out cost per unit of goods produced
(3) to find out Net Profit
(4) All of the above

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