MCQOPTIONS
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MCQOPTIONS
This section includes 657 Mcqs, each offering curated multiple-choice questions to sharpen your Testing Subject knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
If the two companies have different accounting policies in respect of the same item,then they make necessary changes to adopt .............. accounting policies. |
| A. | LIFO method |
| B. | FIFO method |
| C. | Weighted method |
| D. | Uniform |
| Answer» E. | |
| 2. |
…………… preference shares can be redeemed |
| A. | Fully paid |
| B. | Partly paid |
| C. | Both A and B |
| D. | None of these |
| Answer» B. Partly paid | |
| 3. |
F.M.P. for yield valuation is ___________. |
| A. | future profit |
| B. | profit that would be available to equity shareholders |
| C. | past profit |
| D. | none of the above |
| Answer» C. past profit | |
| 4. |
………….company Is a company created by a special Act in Parliament |
| A. | Government |
| B. | Registered |
| C. | Chartered |
| D. | Statutory |
| Answer» E. | |
| 5. |
General Insurance includes ……………. |
| A. | Fire Insurance |
| B. | Marine Insurance |
| C. | Burglary Insurance |
| D. | All of these |
| Answer» E. | |
| 6. |
Yield value depends on………………………. |
| A. | Net profit |
| B. | Gross profits |
| C. | Operating profits |
| D. | Losses |
| Answer» B. Gross profits | |
| 7. |
The liability of shareholders of a company is ……………….. |
| A. | Limited |
| B. | Unlimited |
| C. | Uncertain |
| D. | None of these |
| Answer» B. Unlimited | |
| 8. |
X Ltd takes over Y Ltd and agrees to discharge debenture holders of Y Ltd at a premium of5%. The premium should be debited to ……… |
| A. | Realisation Account |
| B. | Shareholders Account |
| C. | P&L Account |
| D. | None of these |
| Answer» B. Shareholders Account | |
| 9. |
Pre-acquisition dividend received by Holding company is credited to |
| A. | Profit & loss A/c |
| B. | Capital profit |
| C. | Investment A/c |
| D. | Non of the above |
| Answer» D. Non of the above | |
| 10. |
The principle of subrogation is applicable to…………… |
| A. | Fire Insurance |
| B. | Marine Insurance |
| C. | Burglary Insurance |
| D. | All of the |
| Answer» E. | |
| 11. |
Preparation of consolidated statement as per AS 21 is |
| A. | Optional |
| B. | Mandatory for listed Companies |
| C. | Mandatory for Pvt. L |
| Answer» C. Mandatory for Pvt. L | |
| 12. |
……..should be deducted from the share capital to determine the paid up capital. |
| A. | Security premium |
| B. | Calls in advance |
| C. | Calls in arrears |
| D. | Discount on issue |
| Answer» D. Discount on issue | |
| 13. |
………………… means any person employed in any skilled or unskilled, manual,supervisory (wages less than 1600 p.m.), technical work. |
| A. | Workman |
| B. | Creditors |
| C. | Trade receivable |
| D. | Directors |
| Answer» B. Creditors | |
| 14. |
The shares firstly offered to the existing shareholders are called as ………… |
| A. | Right shares |
| B. | Bonus shares |
| C. | Ordinary shares |
| D. | None of these |
| Answer» B. Bonus shares | |
| 15. |
While preparing P/L account , rebate on bills discounted to be provided shall bededucted from discount received in -------- |
| A. | Schedule 16 |
| B. | Schedule 15 |
| C. | Schedule 14 |
| D. | schedule 13 |
| Answer» E. | |
| 16. |
Goodwill in case of a joint stock company is shown on the ‐‐‐‐‐‐‐‐‐‐‐‐‐‐ side under the heading ofintangible assets |
| A. | Liability side |
| B. | Asset side |
| C. | Credit side |
| D. | Debit side |
| Answer» C. Credit side | |
| 17. |
If AB Ltd buys more than 50% of the shares in CD Ltd then which of the followingstatements accurately summarizes the relationship between these two firms? |
| A. | AB Ltd is a subsidiary undertaking of CD Ltd |
| B. | CD Ltd is the parent undertaking |
| C. | AB Ltd is the parent undertaking |
| D. | There is no significant financial relationship between the two |
| Answer» D. There is no significant financial relationship between the two | |
| 18. |
In case of .............., one existing company takes over the business of anothercompany and no new company is formed. |
| A. | Amalgamation |
| B. | Absorption |
| C. | Reconstruction |
| D. | None of the Above |
| Answer» C. Reconstruction | |
| 19. |
When 500 shares of Rs. 10 each on which Rs.3 on final call is not paid, share forfeited account iscredited with ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ |
| A. | Rs.1,500 |
| B. | Rs.3,500 |
| C. | Rs.5,000 |
| D. | Rs.2,000 |
| Answer» C. Rs.5,000 | |
| 20. |
When charge is created against specific assets of the company, it is called ‐‐‐‐‐‐‐‐‐‐‐‐‐ charge. |
| A. | Floating |
| B. | Fixed |
| C. | Second |
| D. | None of these. |
| Answer» C. Second | |
| 21. |
The Profit and Loss Account of companies is prepared in the form …………. |
| A. | Part I of Schedule V |
| B. | Part I of Schedule VI |
| C. | Part II of Schedule V |
| D. | Part II of Schedule VI |
| Answer» E. | |
| 22. |
Banks are required to transfer ….. of their profits to statutory reserve |
| A. | 20% |
| B. | 25% |
| C. | 10% |
| D. | none of these |
| Answer» C. 10% | |
| 23. |
------ represents that part of discount received during the year by a bank whichrelates to the next accounting year. |
| A. | trade discount |
| B. | normal discount |
| C. | unexpired discount |
| D. | cash discount |
| Answer» D. cash discount | |
| 24. |
Assets are NPAs for a period exceeding 12 months are called …………. |
| A. | Standard Assets |
| B. | Substandard Assets |
| C. | Doubtful Assets |
| D. | Loss Assets |
| Answer» D. Loss Assets | |
| 25. |
Dividend is payable on the ‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of the shares. |
| A. | Paid up value |
| B. | Called up value |
| C. | Calls in advance |
| D. | None of these. |
| Answer» B. Called up value | |
| 26. |
……………is the party who undertakes the risk in insurance. |
| A. | Insurer |
| B. | Assurer |
| C. | Underwriter |
| D. | All of these |
| Answer» E. | |
| 27. |
Uncliamed dividend is shown on the liability side of the ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ under the heading currentliabilities. |
| A. | Profit and loss account |
| B. | Income statement |
| C. | Revenue Account |
| D. | Balance sheet |
| Answer» E. | |
| 28. |
Investments are ………………. assets. |
| A. | Non trading |
| B. | Current |
| C. | Fixed assets |
| D. | Fictious |
| Answer» B. Current | |
| 29. |
Redemption of debentures means ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ |
| A. | Creation of liability |
| B. | Discharge of liability |
| C. | Concession of liability |
| D. | None of these. |
| Answer» C. Concession of liability | |
| 30. |
……………… is an artificial person created by law |
| A. | Firm |
| B. | Sole trader |
| C. | Company |
| D. | None of these |
| Answer» D. None of these | |
| 31. |
The vendor company transfers preliminary expenses (at the time of absorption) to: |
| A. | Equity shareholders' account |
| B. | Realisation account |
| C. | Purchasing company's account. |
| D. | none |
| Answer» C. Purchasing company's account. | |
| 32. |
Liquidation expenses paid by the transferee company are debited to ……… |
| A. | Liquidation expense Account |
| B. | Liquidators Account |
| C. | Preliminary expenses Account |
| D. | Goodwill Account |
| Answer» E. | |
| 33. |
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ have priority over equity as to the receipt of individuals and as to assets in the event ofliquidation. |
| A. | Equity shares |
| B. | Deferred shares |
| C. | Preference shares |
| D. | Sweat equity shares |
| Answer» D. Sweat equity shares | |
| 34. |
Bills receivable is ……………………..assets. |
| A. | Current |
| B. | Non - current |
| C. | Fixed Assets |
| D. | Investment |
| Answer» B. Non - current | |
| 35. |
Advanced tax paid by a banking company is shown as ---- in the Balance Sheet. |
| A. | Advance |
| B. | Investment |
| C. | Other assets |
| D. | contingent liability |
| Answer» D. contingent liability | |
| 36. |
In ……………, a new company is formed to take over the business of two or more existingcompanies which go into liquidation |
| A. | Amalgamation |
| B. | External reconstruction |
| C. | Absorption |
| D. | Internal reconstruction |
| Answer» B. External reconstruction | |
| 37. |
Director’s remuneration shall not exceed ………………. % of the net profits. |
| A. | 10% |
| B. | 20% |
| C. | 15% |
| D. | 13.333% |
| Answer» B. 20% | |
| 38. |
Valuation balance sheet is prepared by a life insurance company to find out |
| A. | Profit or loss |
| B. | financial position |
| C. | surplus or deficiency |
| D. | net liability |
| Answer» D. net liability | |
| 39. |
A Banking company required to prepare final accounts according to ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ schedule to thebanking Regulation Act. |
| A. | III |
| B. | IV |
| C. | V |
| D. | VI |
| Answer» B. IV | |
| 40. |
Post Acquisition dividend received by Holding Company is debited to : |
| A. | Bank A/c |
| B. | profit & loss A/c |
| C. | Dividend A/c |
| D. | Investment A/c |
| Answer» C. Dividend A/c | |
| 41. |
Grants related to depreciable assets should be recognised as……., in theperiod in which their depreciation is charged |
| A. | income |
| B. | appropriaton |
| C. | provisions |
| D. | none |
| Answer» B. appropriaton | |
| 42. |
Preparation of consolidated statements as per AS 21 is : |
| A. | Optional |
| B. | Mandatory for All |
| C. | Mandatory for listed companies. |
| D. | Mandatory for PVT. companies. |
| Answer» D. Mandatory for PVT. companies. | |
| 43. |
All the …… profits are not available for the purpose of redemption ofpreference shares |
| A. | revenue |
| B. | capital |
| C. | Both A and B |
| D. | none |
| Answer» C. Both A and B | |
| 44. |
Final accounts of the companies is prepared under the ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ |
| A. | Partnership Act 1932 |
| B. | Insurance Act 1938 |
| C. | Companies Act 1956 |
| D. | Banking Regulation act 1949 |
| Answer» D. Banking Regulation act 1949 | |
| 45. |
Debentures can be redeemed out of ………. |
| A. | Fresh issue |
| B. | Capital |
| C. | Profit |
| D. | All of these |
| Answer» E. | |
| 46. |
Reserve for unexpired risk is shown under |
| A. | reserves and surplus |
| B. | current liabilities |
| C. | provisions |
| D. | none |
| Answer» D. none | |
| 47. |
Discount or loss on issue of debenture is shown in the balance sheet under the head …….. |
| A. | Reserves & Surplus |
| B. | Secured loans |
| C. | Current liabilities |
| D. | Miscellaneous expenditure |
| Answer» E. | |
| 48. |
Banks show the provision for income tax under the head ………. |
| A. | Contingent liabilities |
| B. | Deposits |
| C. | Other liabilities and provisions |
| D. | Borrowings |
| Answer» D. Borrowings | |
| 49. |
Quoted shares are those shares which are ___________. |
| A. | listed on the stock exchange |
| B. | quoted daily |
| C. | quoted by the seller |
| D. | quoted by the buyer |
| Answer» B. quoted daily | |
| 50. |
The acquiree in a business combination is also called a….. company |
| A. | subsidiary |
| B. | parent |
| C. | holding |
| D. | controlling |
| Answer» B. parent | |