SPSC Assistant Chief Inspector of Stamps Past Paper Dated: 29-03-2026 1- In the normal distribution, approximately what percentage of data lies within ±1 standard deviation of the mean? A. 50%B. 68%C. 75%D. 95% View Answer Answer : B. 68% Description 2- Which of the following is a determinant of supply? A. TechnologyB. Consumer incomeC. Tastes and preferencesD. Price of substitutes View Answer Answer : A. Technology Description 3- If a company's EBIT is Rs. 500,000, interest is Rs. 100,000, and tax rate is 30%, what is the Net Income? A. Rs. 280,000B. Rs. 300,000C. Rs. 350,000D. Rs. 400,000 View Answer Answer : A. Rs. 280,000 Description 4- The Debt-to-Equity Ratio measures: A. Liquidity positionB. ProfitabilityC. Financial leverageD. Market valuation View Answer Answer : C. Financial leverage Description 5- If demand is inelastic, an increase in price will: A. Increase total revenueB. Decrease total revenueC. Leave total revenue unchangedD. Make demand perfectly elastic View Answer Answer : A. Increase total revenue Description 6- Trade-off theory of capital structure balances: A. Debt vs dividendsB. Equity vs preference sharesC. Equity vs retained earningsD. Tax benefits of debt vs bankruptcy costs View Answer Answer : D. Tax benefits of debt vs bankruptcy costs Description 7- WACC is: A. Cost of debt onlyB. Cost of equity onlyC. Weighted average of all sources of capitalD. Cost of retained earnings View Answer Answer : C. Weighted average of all sources of capital Description 8- In perfect competition, long-run profits are: A. NormalB. LossesC. SupernormalD. Monopoly rents View Answer Answer : A. Normal Description 9- The law of demand states that: A. Price ↑ → Demand ↑B. Price ↓ → Demand ↑ C. Income ↑ → Demand ↓D. Supply ↑ → Demand ↓ View Answer Answer : B. Price ↓ → Demand ↑ Description 10- Deferred tax liability arises due to: A. Permanent differencesB. Temporary differencesC. Advance tax paymentsD. Tax refunds View Answer Answer : B. Temporary differences Description 11- Which of the following ratios measures market value? A. Current RatioB. Debt-to-Equity RatioC. Price-Earnings RatioD. Return on Assets View Answer Answer : C. Price-Earnings Ratio Description 12- The Modigliani-Miller Proposition II (with taxes) suggests: A. Firm value is independent of capital structureB. Firm value increases with debt due to tax shield C. Firm value decreases with debtD. Firm value depends only on equity financing View Answer Answer : B. Firm value increases with debt due to tax shield Description 13- The Capital Asset Pricing Model (CAPM) states that expected return =: A. Risk-free rate × BetaB. Dividend yield + Growth rateC. Risk-free rate + Market returnD. Risk-free rate + Beta × Market risk premium View Answer Answer : D. Risk-free rate + Beta × Market risk premium Description 14- Which of the following is a money market instrument? A. Equity sharesB. Treasury billsC. DebenturesD. Preference shares View Answer Answer : B. Treasury bills Description 15- The law of diminishing marginal utility states that: A. Total utility decreases as consumption increasesB. Total utility remains constantC. Marginal utility decreases as consumption increases D. Marginal utility increases as consumption increases View Answer Answer : C. Marginal utility decreases as consumption increases Description 16- Which of the following is a capital market instrument? A. Treasury billsB. Commercial paperC. Equity sharesD. Certificate of deposit View Answer Answer : C. Equity shares Description 17- When demand is perfectly elastic, the demand curve is: A. VerticalB. HorizontalC. Downward slopingD. Upward sloping View Answer Answer : B. Horizontal Description 18- Which of the following is a source of short-term finance? A. Equity sharesB. DebenturesC. Trade creditD. Preference shares View Answer Answer : C. Trade credit Description 19- Which of the following is a time study technique used in scientific management? A. Motion StudyB. Gantt ChartC. PERT chartD. SWOT analysis View Answer Answer : A. Motion Study Description 20- Which of the following errors will not affect the trial balance? A. Error of omissionB. Error of commissionC. Error of principleD. Compensating error View Answer Answer : D. Compensating error Description 1 2 3
