Free cash flow is the difference between:
(i) NOPAT - Gross Investment
(ii) NOPAT - Capital Charge
(iii) Gross Cash Flow - Net Investment
(iv) NOPAT - Net Investment + Depreciation
a.
(i)
b.
(ii)
c.
(iii)
d.
(iv)
Correct Answer
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Q2mcq
Risk free return - 8%, Beta of Security - 1.25, Market return - 12%. What is the cost of Equity under Capital
Asset Pricing Model?
a.
12%
b.
13%
Correct Answer
c.
14%
d.
15%
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Q3mcq
To increase the given present value, the discount rate should be adjusted:-
(i) Downward
(ii) Upward
(iii) Discount rate does not influence present value
(iv) Any of the above
a.
(i) only
Correct Answer
b.
(ii) only
c.
(iii) only
d.
(iv) only
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Q4mcq
________ is a bond in which the bond holder has the right to sell the instrument back to the issuer at a
specified price on designated dates.
a.
(ii) only [Saleable bond]
b.
(iii) only [Callable bond]
c.
(iv) only [Warrant]
d.
(i) only [Puttable bond]
Correct Answer
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Q5mcq
Which of the following method would you consider appropriate while valuing the Intangible assets?
(i) Multiple
(ii) Relative
(iii) Consistent
(iv) Exclusive
a.
(i)
b.
(ii)
Correct Answer
c.
(iii)
d.
(iv)
No explanation saved for this question yet.
Q6mcq
Which of the following statements is true about goodwill?
a.
Goodwill $=$ Fair value of assets acquired less purchase consideration in an acquisition
b.
Goodwill $=$ Purchase consideration in an acquisition less fair value of assets acquired
Correct Answer
c.
Goodwill $=$ Purchase consideration in an acquisition less book value of assets acquired
d.
Goodwill $=$ Fair value of assets acquired less book value of assets acquired
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Q7mcq
Following are the models which are generally used in valuation of Human Resources under Income
approach:-
(i) Lev and Schwartz model
(ii) Flamholtz's Stochastic Rewards valuation model
(iii) Green field model
(iv) MM model
a.
(i) and (iii)
b.
(ii) and (iv)
c.
(i) and (ii)
Correct Answer
d.
(ii) and (iii)
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Q8mcq
Which approach stipulates that material should arrive the factory only as and when they are needed?
(i) Kanban
(ii) JIT (Just In Time)
(iii) Distribution Logistics
(iv) Economic order quantity
a.
(i)
b.
(ii)
Correct Answer
c.
(iii)
d.
(iv)
No explanation saved for this question yet.
Q9mcq
Which of the following statements is correct?
(i) FIFO matches the current costs with current revenue
(ii) When the closing inventory is overstated, net income for the accounting period will be understated, other
things remaining constant
(iii) When the opening inventory is overstated, net income for the accounting period will be understated, other
things remaining constant
a.
(i) only
b.
(i) and (iii)
c.
(i) and (ii)
d.
(iii) only
Correct Answer
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Q10mcq
In which situation would a company likely have the need for business valuation?
a.
When deciding the appropriate price to pay in a takeover
Correct Answer
b.
When buying stationery for office use
c.
When hiring new staff member
d.
When scheduling board meeting
No explanation saved for this question yet.
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Life Insurance policy of Mr. Kumar (a sole proprietor) was matured and amount received for Rs. 1,00,000
was retained in the business will be treated as
a.
Closing capital
b.
Additional capital
c.
Drawings
d.
Loan account of Mr. Kumar
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Which of the following amount appear in the Receipts and Payments account from the information given
below:
Surplus on publication of brochure Rs. 45,000 as per income and expenditure account.
Additional Information :-
Advertisement charges for brochure yet to be received Rs. 5,500
a.
Rs. 50,500 as receipts
b.
Rs. 39,500 as receipts
c.
Rs. 50,500 as payments
d.
Rs. 39,500 as payments
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Choose the right matches given below:
(1) Receipts and Payment a/c - Real a/c
(2) Income and expenditure a/c - Has opening balance
(3) Branch adjustment a/c - Nominal a/c
a.
(1) and (3) are correct
b.
(1) and (2) are correct
c.
(2) and (3) are correct
d.
All are correct
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Ram commenced business with Rs. 1,00,000 on 1.1.2020. On 31.12.2020, he has stock of Rs. 60,000. He
draws Rs. 5,000 per month. His closing cash balance Rs. 20,000/-. What is his profit or loss for year 2020.
a.
Rs. 40,000/- loss
b.
Rs. 40,000/- profit
c.
Rs. 20,000/- profit
d.
Rs. 20,000/- loss
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When goods are returned by Madurai Branch on 28th March for Rs. 10,000 not yet received by head office
as on 31st March then ________ a/c is debited and ________ a/c is credited.
a.
Goods in Branch a/c / Madurai Branch a/c
b.
Goods in Transit a/c / Closing stock a/c
c.
Goods in Transit a/c / Madurai Branch a/c
d.
Goods in Branch a/c / Closing stock a/c
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Under debtor system of preparing branch accounts, when goods are supplied by the head office and not
received by branch, then accounting entry is made by debiting ________ and crediting ________
a.
Branch a/c, Goods in transit
b.
Branch a/c, closing stock a/c
c.
Goods in Transit, Branch a/c
d.
Branch a/c, Goods return a/c
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Raj Ltd with their Head Office at Calcutta invoiced goods to their Patna branch at 20% less than the list
price which is cost plus 100%. What is invoice price?
a.
160% of cost price
b.
120% of cost price
c.
140% of cost price
d.
150% of cost price
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The electricity company shall appropriate to ________ reserve from the revenues of each year of account
a sum not less than 1/4% and not more than 1/2% of the original cost of fixed assets until it amounts to 5% of
the original cost of fixed assets.
a.
Statutory Reserve
b.
Contingency Reserve
c.
Development Reserve
d.
Tariffs and Dividend Control Reserve
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As per Ind AS-2, where specific identification method is not applicable, the cost of inventories is valued
by:
(i) First in First out
(ii) Last in First out
(iii) Weighted average cost
a.
(i) and (ii) only
b.
(i) and (iii) only
c.
(ii) and (iii) only
d.
(i), (ii), (iii)
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A dealer has purchased 1000 cars costing Rs. 2,80,000 each on deferred payment basis as Rs. 25,000 per
month per car to be paid in 12 equal instalments. What is cost of inventory as per Ind AS-2 when closing stock
is 20 cars?
a.
28,00,000
b.
75,00,000
c.
60,00,000
d.
56,00,000
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ABC college, an institution managed by a trust has received a grant for Rs. 1 crore from a Government
agency for funding a project. As an auditor, evaluate the following statements and state whether true or false:
(i) Study the grant letter to understand the conditions relating to grant
(ii) Examine the bank statement and trace the receipt of grant therein
(iii) Examine whether fund account has been shown as asset in the balance sheet
a.
True, True, False
b.
False, True, False
c.
False, True, True
d.
False, False, True
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Match the following with respect to appointment of auditors:
(a) Nationalised bank - 1. Registrar
(b) Co-operative society - 2. Shareholders
(c) Trusts - 3. RBI
(d) Banking companies - 4. Board of trustees
a.
(a)-3, (b)-1, (c)-4, (d)-2
b.
(a)-3, (b)-2, (c)-4, (d)-1
c.
(a)-1, (b)-4, (c)-2, (d)-3
d.
(a)-1, (b)-2, (c)-4, (d)-3
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In which audit the following special steps are involved?
(1) Fees condonation by appropriate authority to be considered for reconciliation between receivable fees and
received
(2) Verification of interest from deposit certificates
(3) Grants received with the relevant papers of grant
a.
Audit of co-operatives
b.
Audit of trust
c.
Audit of educational institutions
d.
Audit of hospitals
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Installed capacity is determined based on which factors?
(1) Manufacturers technical specifications
(2) Number of shifts
(3) Normal time lost in batch change over
a.
(1) and (2) only
b.
(2) and (3) only
c.
(3) and (1) only
d.
(1), (2), (3)
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Which industries are non regulated sectors as per cost audit?
(1) Turbo jets and turbo propellers
(2) Fertilisers
(3) Sugar and industrial alcohol
(4) Arms and ammunitions and explosives
(5) Iron and steel
a.
(2), (3), (5) only
b.
(3), (4), (5) only
c.
(4), (5), (1) only
d.
(2), (1), (3) only
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State which of the following statements are True/False:
(1) An unqualified report by the auditor will not contain any qualification or reservation
(2) In case of qualified report the auditor is able to form an opinion on the matter but it is in conflict with the
view given by the financial statements
a.
(1) True, (2) False
b.
(1) and (2) are False
c.
(1) False, (2) True
d.
(1) and (2) True
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From the following particulars identify the Key Audit Matters:
(1) Assessment of impairment
(2) Provision for losses and contingencies
(3) Valuation of financial instruments
(4) Matters relating to revenue recognition
(5) Very small issues
a.
(1), (2) and (3) are key audit matters
b.
(3), (4) and (5) are key audit matters
c.
(1), (2), (3) and (4) are key audit matters
d.
All of the above are key audit matters
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If an auditor, having formed an opinion on the financial statements thinks it necessary to draw users
attention to a matter, he can do so by way of clear additional communication in the auditor's report by including
a.
Other matter paragraph
b.
Emphasis of matter paragraph
c.
Opinion paragraph
d.
Responsibilities for the financial statements paragraph
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Arrange the steps involved in a risk based internal audit process plan?
(1) Derive residual risk rating
(2) Derive frequency of audit
(3) Assess control environment
(4) Develop audit plan
a.
(1), (3), (2), (4)
b.
(3), (2), (4), (1)
c.
(3), (1), (2), (4)
d.
(3), (2), (1), (4)
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In order to evaluate the internal control of Y and M Ltd., a team member of the auditors used a method
according to which, number of questions relating to internal control were answered by employees and
discussed. State the method of evaluation used here.
a.
Narrative record
b.
Check list
c.
Internal control questionnaire
d.
Flow chart
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Choose the objectives of audit of local bodies:
(a) Reporting on fairness of financial statements
(b) Reporting upon strength and weaknesses of financial control
(c) Reporting on adherence to legal requirements
(d) Reporting whether value is fully received on money spent
(e) Detection and prevention of error, fraud and misuse of resources
a.
(a), (b), (c) only
b.
(b), (d) and (e) only
c.
(a), (b), (c), (d) and (e)
d.
(a), (b), (c) and (e) only
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Which of the following are the key elements of internal audit report that the internal auditor shall issue:
(i) Overview of objective, scope and approach
(ii) Fact that audit conducted in accordance with SIA
(iii) Executive summary of key observations
(iv) Summary of corrective actions required
a.
(i), (ii), (iii) only
b.
(i), (ii) and (iv) only
c.
(i), (iii) and (iv) only
d.
(i), (ii), (iii) and (iv)
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For obtaining audit evidence, the following are the methods generally used:
(i) Inspection
(ii) Observation
(iii) Inquiry and confirmation
(iv) Computation and analytical review
a.
(i), (ii), (iii) and (iv) true
b.
(i), (iii) true
c.
(iii) and (iv) true
d.
(ii) and (iii) true
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As per SA 701 communicating key audit matters in independent auditor's report, which area auditor
should not take into account to determine 'Key audit matter'?
a.
The effect on audit of significant transactions that took place in financial year
b.
Areas of high risk as assessed and reported by management expert
c.
Significant auditor judgment relating to areas that involved significant management judgement
d.
All of the above
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As regards team's assessment that risk of material misstatements is low, which of the following
statements is odd one relating to documentation of risks?
a.
Discussion amongst engagement team members and significant decisions reached has to be documented
b.
Detail of risk assessment procedures have to be documented
c.
Details about understanding of internal control was obtained has to be documented
d.
Precise calculating of risk of material misstatements has to be documented
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On audit consideration of number and location of branches, requirement of financial reporting framework
and expected time of completion are relevant factors primarily for:
a.
Developing audit plan
b.
Establishing overall audit strategy
c.
Designing audit programme
d.
Designing risk assessment procedure
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Consider statements in relation to limited assurance engagement:
Statement I: It involves obtaining sufficient appropriate evidence to draw reasonable conclusions.
Statement II: Review of interim financial information of a company is an example of limited assurance
engagement.
a.
Statement I is correct, statement II is incorrect
b.
Both statements I and II are correct
c.
Both statement I and II are incorrect
d.
Statement I is incorrect, statement II is correct
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Which of the following are the right type of assurance engagement?
(1) Reasonable assurance engagement
(2) Limited assurance engagement
(3) Provides assurance regarding reasonability of assumptions
(4) Provides assurance regarding design and operation of controls
a.
(1) only
b.
(2) and (3) only
c.
(1) and (2) only
d.
(1), (2), (3), (4)
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A person including a factor, broker, commission agent, arhatia or any other who carries on the business of
supply or receipt of goods or services on behalf of another is known as ________ as per the GST Act 2017.
a.
Taxable person
b.
Common postal
c.
Supplier
d.
Agent
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Meaning and scope of supply under GST Act:
(1) The services by an employee to employer
(2) Services by court or tribunal
(3) Supply should be goods or services or both
(4) Supply for consideration and should be in course or furtherance of business
a.
(3), (4) correct
b.
(1), (2) correct
c.
(1), (3) correct
d.
(2), (4) correct
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M/s X Ltd supplied taxable goods in Oct 2023 for Rs. 8,00,000 suppressing the transaction. He deposited
GST @ 12% against notice U/S 74 (fraud). Whether distributor recipient is eligible to take Input Tax Credit?
a.
ITC Not allowed
b.
ITC allowed
c.
ITC allowed Feb 2023
d.
Partially allowed
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Ms. P (New Delhi) boards New Delhi - Kolkata flight. She buys lunch in flight loaded into aircraft at New
Delhi. Airlines registered in New Delhi and Kolkata. Determine place of supply for food.
a.
New Delhi
b.
Kolkata
c.
Aircraft
d.
Not a supply
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Suppose a 3% Rs. 1000 bond had 5 years to maturity purchased for Rs. 800. Prevailing interest was 8%,
and currently 9%. What is the approximate yield / return to investor?
a.
11.4%
b.
6.4%
c.
9.4%
d.
10.4%
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Find TDS/TCS applicability of E-Commerce Operator: Top Fashions effected supply through 'Quick Deal'
e-commerce operator. Net value of taxable intra-state supply for Oct 2023 was Rs. 1,50,000.
a.
TCS, CGST Rs. 750; SGST Rs. 750
b.
TDS, CGST Rs. 750; SGST Rs. 750
c.
TCS, IGST Rs. 1,500
d.
TDS, IGST Rs. 1,500
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Mr. Vijay imported sewing machines from Japan for Rs. 10,00,000. Basic customs duty is 10% and social
welfare surcharge is 10% of BCD. Compute value for payment of IGST?
a.
Rs. 10,00,000
b.
Rs. 11,00,000
c.
Rs. 11,10,000
d.
Rs. 12,00,000
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Find out Non-applicability of TDS under Section 193:
(i) On National Development Bonds
(ii) On 7-year National Savings Certificates
(iii) If Debentures are issued by listed businesses
(iv) If interest exceeds Rs. 10,000 in case of 8% Saving bonds
a.
(i), (ii) correct
b.
(iii), (iv) correct
c.
(i), (iv) correct
d.
(iii), (ii) correct
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For AY 24-25, Calcutta Co-op society derives income: (a) Processing with aid of power Rs. 10,000, (b)
Collective disposal of labour Rs. 15,000, (c) Interest from another co-op Rs. 30,000, (d) House property Rs.
80,000, (e) Other business Rs. 61,000. Determine taxable income.
a.
Rs. 1,96,000
b.
Rs. 1,01,000
c.
Rs. 95,000
d.
Rs. 1,66,000
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Examine applicability of TDS U/S 194 DA: Mr. Y is due to receive Rs. 4.10 lakhs on LIC policy taken on
31.03.2012, sum assured Rs. 3.70 lakhs and annual premium Rs. 30,100.
a.
No tax is to be deducted U/S 194 DA
b.
5% TDS is to be deducted U/S 194 DA
c.
10% TDS is to be deducted U/S 194 DA
d.
20% TDS is to be deducted U/S 194 DA
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JK Associates is an AOP of members J (60%) and K (40%). Income of AOP is Rs. 10 lakhs. J and K have
personal incomes Rs. 1 lakh and Rs. 2.7 lakhs respectively. Rate of tax applicable to AOP is
a.
30%
b.
33.744%
c.
42.744%
d.
No tax payable
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Conditions to be satisfied in computing taxable income from exploration of mineral oils U/S 44 BB:
(1) Assessee is resident
(2) Assessee is non-resident
(3) Must be Indian citizen
(4) Indian citizen or foreign citizen
(5) Engaged in providing services in connection with exploration of mineral oils
a.
(1), (4) and (5)
b.
(1), (3) and (5)
c.
(2), (4), (5)
d.
(2), (3) and (5)
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Mr. A gifts cash Rs. 1,00,000 to brother's wife Mrs. B. Mr. B gifts cash Rs. 1,00,000 to Mrs. A. Mrs. A invests
in FD earning Rs. 10,000. This Rs. 10,000 will be included in total income of
a.
Mr. A
b.
Mr. B
c.
Mrs. A
d.
Mrs. B
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Mr. Y receives Rs. 4.10 lakhs on 31.03.24 on LIC policy taken on 31.03.2012, sum assured Rs. 3.70 lakhs,
annual premium Rs. 30,100. Mention Sec 194 DA TDS applicability.
a.
U/S 194 DA applicable
b.
U/S 194 DA not applicable
c.
Partly applicable
d.
Applicable to next year
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U/S 115 BBJ in respect of winnings from online games. Find out statements true/false:
(1) Taxable at flat 30% + cess 4%
(2) No expenditure or allowance allowed
(3) Deduction under Chapter VI-A not allowable
(4) Adjustment of unexhausted basic exemption limit permitted
a.
(1) and (2) true, (3) and (4) false
b.
All are true
c.
(1), (2) and (3) are true, (4) is false
d.
All are false
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If any person fails to get accounts audited under Sec 44AB, penalty can be a sum equal to ________ of
total sales/turnover subject to maximum of ________.
a.
One and Half percent, Rs. 2.5 lakhs
b.
One and Half percent, Rs. 1.5 lakhs / 0.5%, Rs. 1.5 lakhs
c.
2.5%, Rs. 1.5 lakhs
d.
2.5%, Rs. 2.5 lakhs
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What is the significance of return on invested capital for investors?
(i) Indicates sales volume
(ii) Measures advertising effectiveness
(iii) Shows profit from equity
(iv) Shows how well a company generates profit from capital provided
a.
(i)
b.
(ii)
c.
(iii)
d.
(iv)
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Choose the odd one: profitability of an entity is measured by:
(1) in relation to sales
(2) in relation to valuation of firm
(3) in relation to purchase
(4) in relation to firms investment
a.
(1)
b.
(2)
c.
(3)
d.
(4)
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Which of the following statement/s is/are false?
(i) KPI and CSF denote the same thing
(ii) KPIs are critical to success of business
(iii) KPIs are parameters that do not measure whether CSFs are working
(iv) Indicator for social performance is number of environmental law suits
a.
(i), (ii) and (iv)
b.
(i) and (iii)
c.
(ii), (iii) and (iv)
d.
(i), (iii) and (iv)
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Which of the following statement/s is/are false:
(i) Links are participating companies
(ii) Participating companies referred to as supporting companies
(iii) Participating and supporting companies distinct and do not form group
(iv) Upstream side of material flow referred to as customer
a.
(i) and (ii) only
b.
(i) and (iii) only
c.
(iii) and (iv) only
d.
(i), (ii) and (iv) only
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Which of the following statements are True?
(1) Disruption of learning curve is possible if crew members are changed
(2) Steeper learning curve means faster decrease in cost
a.
Both (1) and (2) are True
b.
Both (1) and (2) are False
c.
(1) True and (2) False
d.
(1) False and (2) True
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If labour cost and material cost go up by 10% and 5% respectively, what percentage increase in selling
price is necessary to keep P/V of 20% (material:labour $=$ 3:2, variable overhead nil)?
a.
5%
b.
7%
c.
6.2%
d.
9%
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Market value as a transfer price has disadvantages: (1) Market price might be ________ induced by
economic conditions; (2) There might be ________ external market.
a.
(1) temporary, (2) imperfect
b.
(1) temporary, (2) fixed
c.
(1) permanent, (2) perfect
d.
(1) temporary, (2) perfect
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As per ________ accounting standard, submission of cash flow statements has been made mandatory
w.e.f. 1.4.2001 for listed companies and companies whose turnover exceeds Rs. 50 crores.
a.
AS-5
b.
AS-3
c.
AS-3 (Revised)
d.
AS-5 (Revised)
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State which statements are true:
(1) Maintaining management accounts is a statutory requirement for all limited companies.
(2) All tools of management accounting are concerned with forecast of future.
a.
(1) false and (2) true
b.
(1) true and (2) false
c.
Both (1) and (2) are true
d.
Both (1) and (2) are false
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Calculate labour yield variance: Actual production $=$ 90 units, Standard production $=$ 100 units, Standard
wage rate $=$ Rs. 10/unit, Standard Time $=$ 2 hrs/unit.
a.
Rs. 200 favourable
b.
Rs. 200 adverse
c.
Rs. 100 favourable
d.
Rs. 100 adverse
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Calculate standard labour time for part Z235: Batch $=$ 100 pcs, Setup $=$ 64 min, Operating per pc: fixing 2
min, cutting 10 min, removing 3 min. Allow 10% of operation time for inspection.
a.
1650 minutes
b.
1714 minutes
c.
1500 minutes
d.
1564 minutes
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Which of the following are pre-requisites of inter firm comparison?
(1) Adoption of uniform costing
(2) Responsible organisation
(3) Collection of relevant information
(4) Methods of collection
a.
(1), (2) and (3)
b.
(1), (2) and (4)
c.
(2), (3) and (4)
d.
All the above
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Find out if production of X is more profitable from Machine A (100 units/hr, SP 9, MC 5, FC 2) or Machine
B (150 units/hr, SP 9, MC 6, FC 2). Available hours $=$ 2500.
a.
Machine A
b.
Machine B
c.
Both machines equally profitable
d.
Both not profitable
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Fixed costs $=$ Rs. 4,00,000, variable costs $=$ 75% of selling price. To realize profit Rs. 1,00,000 from sales
of 5,00,000 units, selling price per unit must be
a.
Must be Rs. 1
b.
Must be Rs. 4.80
c.
Must be Rs. 4
d.
Must be Rs. 6
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As per sec 2(5) of Payment of Bonus Act 1965, Appropriate government means: (I) For establishment
under ID Act 1947, Central Govt; (II) For any other, respective State Govt.
a.
Both (I) and (II) are true
b.
Both (I) and (II) are wrong
c.
(I) alone true
d.
(II) alone true
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As per sec 8 of Minimum Wages Act 1948, Central Advisory Board is appointed for: (I) Advising Central
and State Govt on fixation/revision; (II) Coordinating work of Advisory Boards.
a.
Both (I) and (II) are wrong
b.
Both (I) and (II) are true
c.
(I) alone true
d.
(II) alone true
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An EBIT-EPS indifference analysis chart is used for:
(i) Evaluating business risks
(ii) Examining EPS for alternative plans at varying EBIT
(iii) Determining sales impact on EBIT
(iv) Showing EPS quality
a.
(ii)
b.
(iv)
c.
(iii)
d.
(i)
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State which statements are not true:
(i) Individual investors deal in secondary market only
(ii) NSE is public sector organisation
(iii) Capital market includes money and forex market
(iv) SEBI objectives include investor protection
a.
(i) and (ii)
b.
(ii) and (iii)
c.
(i), (ii) and (iii)
d.
(ii), (iii) and (iv)
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Short selling refers to:
(i) Buying and selling same day
(ii) Selling shares without owning them
(iii) Selling small portion
(iv) Continuous selling in small lots
a.
(i)
b.
(ii)
c.
(iii)
d.
(iv)
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Gross profit ratio remains same but Net profit ratio is declining. Reason could be:
(i) increase in COGS
(ii) increase in other expenses
(iii) increase in dividend
(iv) decrease in sales
a.
(i) and (iv)
b.
(ii) and (iii)
c.
(ii) only
d.
(i), (ii) and (iv)
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Choose correct statement/s: (i) Value analysis informal; (ii) Deals with recoverable costs; (iii) Phases
start with project identification; (iv) Focused on cost reduction while indifferent to value.
a.
(i) and (ii)
b.
(iii) and (iv)
c.
(ii) and (iv)
d.
(i) and (iv)
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Important techniques that fit into the framework of target costing is/are:
(i) Value analysis and value engineering
(ii) Just in time and TQM
(iii) Kaizen
(iv) Dupont analysis
a.
(iv)
b.
(i) and (ii)
c.
(i), (ii) and (iii)
d.
(ii) and (iii)
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Which of following statements are true or false?
(1) Life cycle costing establishes total cost of ownership.
(2) Akio Morita is credited with pioneering target costing.
a.
(1) true, (2) false
b.
(1) and (2) are false
c.
(1) false, (2) true
d.
(1) and (2) are true
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