ICICI Bank Exam Sample Questions VERBAL ANALYSIS TEST 3

TEST 3 VERBAL ANALYSIS

Choose the correct answer to each question by basing you answers on the information contained in the passage only and not on general knowledge. Some questions have 2 options, others have 5. See how many you can do in 8 minutes
Accountants have shown how simple it is to inflate profits artificially by manipulating accounting standards, while the stock market demonstrates that such artificial inflation will be followed by natural deflation: many companies have been humbled by falling profits and share prices. Certainly, accounting standards are as much to blame as accountants, but the heart of the problem is that tension between the interests of management and those of shareholders is almost invariably resolved in favour of management. Share holders notionally have the right to vote against the re-election of auditors, but they never do, and it is the management that signs the cheques. It is desirable for the accounting profession to police itself more effectively and for share holders to take more seriously their responsibility for the election of auditors. However, neither is likely to happen.

Which of the following best replaces the word “notionally” (line7)?
A. actually B. theoretically C. figuratively D. legally E. naturally

2. Why is it unlikely according to the passage that the accounting profession will begin policing itself more effectively?
A. the accounting profession has insufficient resources.
B. The management of companies would prevent this.
C. The accounting profession would lose profit.
D. The accounting profession does not want share holders to become involved in electing auditors.
E. Cannot say.

3.Which one of the following summarises the overall message of the passage?
A. Share holders should become more actively involved in company proceeding than at present.
B. Management should not be more influential than shareholders in the appointment of external advisors.
C. Auditors activities should not be controlled by the purse but by professional ethics.
D. Manipulation of accounting standards is ultimately undesirable and should be prevented.
E. Inflation and deflation are not always caused by legitimate influences.

4.Can it be inferred from the passage that most companies overstate their profits?
A. Yes
B. No

The government has recently attempted to integrate the environmental clean up of industry under one umbrella. To minimized environmental damage, the volume of pollutants emitted from a plant has to be authorized by an official pollution control inspectorate.
Industry has complained repeatedly about the time and cost of getting operations approved under the new system. The inspectors maintain, however, that industry often has itself to blame for delays as many applications provide insufficient data. Industry has also worried about public access to the information it supplies to get authorization. Information can only be withheld from public registers on the grounds of commercial confidentiality, if a company can prove it would be disadvantaged by disclosure.

5. For which two of the following reasons was the new pollutions control system set up?
A. To provide an integrated approach to pollutions control
B. To reduce the number of toxins utilized by industry.
C. To maintain the quantity of contaminants at an acceptable level.
D. To ensure that each industrial company operates competitively.
E. To enable applications to be authorized quickly.

6. Is it true according to the passage that obtaining authorization on operations results in having to divulge confidential information to competitors?
A. Yes
B. No

7.Can it be inferred from the passage that industry has not welcomed the introduction of the official pollution control inspectorate?
A. Yes
B. No
8.According to the passage, how accurate is the statement, “There would be no environmental destruction if there were no pollutants”?

A. Definitely true
B. Likely to be true
C. Likely to be untrue
D. Definitely untrue