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. |
Investments made by a holding company in a subsidiary company are always to beshown in ………………. |
| A. | Profit & Loss A/C |
| B. | Consolidated Balance Sheet. |
| C. | Minority Interest. |
| D. | Dividend A/C |
| Answer» C. Minority Interest. | |
| 2. |
Unsecured debentures are otherwise known as ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ debentures. |
| A. | Simple |
| B. | Mort age |
| C. | Bearer |
| D. | None of these. |
| Answer» B. Mort age | |
| 3. |
Converting share of larger denomination into smaller denominations is called: |
| A. | Sub-division |
| B. | Combination |
| C. | Consolidation |
| D. | Merger |
| Answer» B. Combination | |
| 4. |
Bonus payable on maturity of the policy is termed as |
| A. | cash bonus |
| B. | capital bonus |
| C. | reversionary bonus |
| D. | none of these |
| Answer» D. none of these | |
| 5. |
LIC was nationalized in ………….. |
| A. | 1935 |
| B. | 1950 |
| C. | 1956 |
| D. | 1964 |
| Answer» D. 1964 | |
| 6. |
When two or more companies carrying on similar business decide to combine, a newcompany is formed, it is known as………………………… |
| A. | Merger |
| B. | Amalgamation |
| C. | Absorption |
| D. | Demerger |
| Answer» C. Absorption | |
| 7. |
The forfeited shares can be reissued at ………… |
| A. | Par |
| B. | Premium |
| C. | Discount |
| D. | All of these |
| Answer» E. | |
| 8. |
The statement of financial position and the balance sheet are synonyms |
| A. | True |
| B. | False |
| C. | none |
| D. | none |
| Answer» B. False | |
| 9. |
The process of recording financial data up to trial balance is |
| A. | Book keeping |
| B. | Classifying |
| C. | Summarizing |
| D. | Analyzing |
| Answer» B. Classifying | |
| 10. |
Requirements given in part I of schedule VI apply to ‐‐‐‐‐‐‐‐‐‐‐‐‐‐ |
| A. | Income statement |
| B. | Statement of profit or loss |
| C. | Balance sheet |
| D. | Final accounts |
| Answer» D. Final accounts | |
| 11. |
A contributory is: |
| A. | Creditor |
| B. | A shareholder |
| C. | A debenture holder |
| D. | A convertible debenture holder |
| Answer» C. A debenture holder | |
| 12. |
Share application account is a ……….. |
| A. | Real Account |
| B. | Nominal Account |
| C. | Impersonal Account. |
| D. | Personal Account |
| Answer» E. | |
| 13. |
Unclaimed dividend is shown on the liability side of the balance sheet under the heading:‐ |
| A. | Reserves & Surpluses |
| B. | Current liabilities |
| C. | Provisions |
| D. | Unsecured Loans. |
| Answer» C. Provisions | |
| 14. |
------ is a liability which may or may not arise in future depending on happening ofsome uncertain future event. |
| A. | contingent liability |
| B. | bills for collection |
| C. | non-banking liability |
| D. | bills payable |
| Answer» B. bills for collection | |
| 15. |
The P&L A/c of Banking Companies are prepared as per ………….of Banking Regulation Act. |
| A. | Form A of Schedule III |
| B. | Form B of Schedule III |
| C. | Form A of Schedule VI |
| D. | Form B of Schedule VI |
| Answer» C. Form A of Schedule VI | |
| 16. |
F.M.P. stands for ………………… |
| A. | Firm maintainable profits |
| B. | Future maintainable profits |
| C. | False maintainable profits |
| D. | Foreign maintainable profits. |
| Answer» C. False maintainable profits | |
| 17. |
Unsecured debentures are otherwise known as……. Debentures |
| A. | simple |
| B. | mortgage |
| C. | complex |
| D. | none |
| Answer» B. mortgage | |
| 18. |
In case of ……………..preference shares, the arrears of dividend are carried forward and paidout of the profits of the subsequent years. |
| A. | Participating |
| B. | Convertible |
| C. | Cumulative |
| D. | Redeemable |
| Answer» D. Redeemable | |
| 19. |
A ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ Company puts restriction on the transfer of its shares. |
| A. | Private company |
| B. | Public company |
| C. | Limited companies |
| D. | None of these. |
| Answer» B. Public company | |
| 20. |
Minority Interest includes : |
| A. | Share in share capital |
| B. | Share in Capital profit |
| C. | Share in Revenue profit |
| D. | All of the above |
| Answer» E. | |
| 21. |
The pre- acquisition loss of subsidiary should be deducted from …….. whilecalculating net assets |
| A. | share capital |
| B. | equity share capital |
| C. | debentures |
| D. | none |
| Answer» C. debentures | |
| 22. |
The share capital account is debited with …………while forfeiting shares |
| A. | Calls in arrears |
| B. | Paid up capital |
| C. | Called capital |
| D. | Issued capital |
| Answer» D. Issued capital | |
| 23. |
The main purpose of internal reconstruction is to: |
| A. | Eliminate the accumulated losses from the books. |
| B. | Bring down the assets to their true values |
| C. | Both A&B above |
| D. | Only A |
| Answer» D. Only A | |
| 24. |
Realisation Account is a ………….. |
| A. | Real Account |
| B. | Personal Account |
| C. | Nominal Account |
| D. | Suspense Account |
| Answer» D. Suspense Account | |
| 25. |
Money at call and short notice is an ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of the Banking company. |
| A. | Liability |
| B. | Asset |
| C. | Income |
| D. | Expense |
| Answer» C. Income | |
| 26. |
Assets acquired by a bank in satisfaction of a claim are known as… |
| A. | non-banking assets |
| B. | performing assets |
| C. | standard assets |
| D. | none of these |
| Answer» B. performing assets | |
| 27. |
…………..is that portion of issued capital which is applied for by the public. |
| A. | Issued capital |
| B. | Subscribed capital |
| C. | Nominal Capital |
| D. | Paid up capital |
| Answer» C. Nominal Capital | |
| 28. |
A banking company should transfer 25% of its profits to a ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ |
| A. | General reserve |
| B. | Capital reserve |
| C. | Statutory Reserve |
| D. | Reserve fund |
| Answer» D. Reserve fund | |
| 29. |
The net profit available for dividend distribution is called ………… |
| A. | Net Profit |
| B. | Surplus |
| C. | Divisible Profit |
| D. | Capital Profit |
| Answer» D. Capital Profit | |
| 30. |
In …... the company offers the investors an opportunity to bid collectively. |
| A. | Private Placement |
| B. | Offer for sale |
| C. | Book building |
| D. | IPO |
| Answer» D. IPO | |
| 31. |
P/E ratio is a relationship between……………….. and …………… |
| A. | MP/ EPS |
| B. | NP/EPS |
| C. | GP/ EPS |
| D. | LOSS/EPS |
| Answer» B. NP/EPS | |
| 32. |
Debentures are shown in the balance sheet under the head ……….. |
| A. | Secured loans |
| B. | Unsecured loans |
| C. | Provisions |
| D. | Current liabilities |
| Answer» B. Unsecured loans | |
| 33. |
The profit on reissue of forfeited shares is transferred to ……… |
| A. | General reserve |
| B. | Capital Redemption reserve |
| C. | Capital reserve |
| D. | Investment Allowance reserve |
| Answer» D. Investment Allowance reserve | |
| 34. |
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ in case of a joint stock company is shown on the Asset side under heading of intangibleassets |
| A. | Goodwill |
| B. | Plant & machinery |
| C. | Land |
| D. | Building |
| Answer» B. Plant & machinery | |
| 35. |
B” List of contributories are not liable: |
| A. | If shares are fully paid up |
| B. | For liabilities after they are ceases to be member of the company. |
| C. | If present shareholders paid the unpaid amount of the shares transferred by them. |
| D. | All of the above |
| Answer» E. | |
| 36. |
Inter- company dividends are ……………………..to the cost of investment in thesubsidiary company for calculating goodwill or capital reserve. |
| A. | Added |
| B. | Deducted |
| C. | Remove |
| D. | None of the above. |
| Answer» C. Remove | |
| 37. |
AS400 is a ………………………………accounting software. |
| A. | Financial |
| B. | Management |
| C. | Cost |
| D. | none |
| Answer» B. Management | |
| 38. |
Companies have a statutory obligation to prepare final accounts required by ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of thecompanies Act 1956. |
| A. | Section 215 |
| B. | Section 220 |
| C. | Section 210 |
| D. | Section 212 |
| Answer» D. Section 212 | |
| 39. |
……….is an agreement between two insurance companies whereby one transfers a part of risk to other. |
| A. | Reinsurance |
| B. | Sub insurance |
| C. | Shared Policy |
| D. | None of these |
| Answer» B. Sub insurance | |
| 40. |
NPA stands for…………. |
| A. | Non‐ Performing Assets |
| B. | Normal Performing Assets |
| C. | National Performing Asset |
| D. | None of these |
| Answer» B. Normal Performing Assets | |
| 41. |
Capital reserve will appear on the liability side of the balance sheet under the head ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐. |
| A. | Reserves & surpluses |
| B. | Secured loan |
| C. | Unsecured loan |
| D. | Current liabilities. |
| Answer» B. Secured loan | |
| 42. |
The buy back of shares may be done |
| A. | at par |
| B. | at discount |
| C. | at premium |
| D. | all the above |
| Answer» E. | |
| 43. |
Debentures issued with a fixed or a floating charge on the assets of the company are called ‐‐‐‐‐‐‐‐‐‐‐ debentures |
| A. | Bearer |
| B. | Secured |
| C. | Simple |
| D. | Unsecured |
| Answer» C. Simple | |
| 44. |
The commission earned by insurance companies from others for giving them business underreinsurance is called ………………… |
| A. | Commission on reinsurance accepted |
| B. | Agents’ commission |
| C. | Commission on reinsurance ceded |
| D. | None of these |
| Answer» D. None of these | |
| 45. |
A term loan will be treated as NPA if interest or instalment and principalremain overdue for a period more than ……. Days |
| A. | 75 |
| B. | 50 |
| C. | 90 |
| D. | 100 |
| Answer» D. 100 | |
| 46. |
Under …………., the sum assured is given to the beneficiary only on death of policyholder. |
| A. | Whole Life Policy |
| B. | Endowment Policy |
| C. | Annuity |
| D. | None of these |
| Answer» B. Endowment Policy | |
| 47. |
The new Electricity Act was passed in the year… |
| A. | 2003 |
| B. | 2008 |
| C. | 2004 |
| D. | 2000 |
| Answer» B. 2008 | |
| 48. |
Which of the following statements are true?I) Financial statements are only interim report. II) Financial statements are also known as annual records. III) Financial statements are historic. |
| A. | Both I and II |
| B. | Both I and III |
| C. | Both II and III |
| D. | I, II, III |
| Answer» D. I, II, III | |
| 49. |
Net asset value is also called as ___________. |
| A. | asset backing value |
| B. | intrinsic value |
| C. | liquidation value |
| D. | (a), (b) and (c) |
| Answer» E. | |
| 50. |
If the purchase price of debentures includes interest for the expired period, the quotation issaid to be ………….. |
| A. | Ex‐interest |
| B. | Cum‐interest |
| C. | Co‐interest |
| D. | None of these |
| Answer» C. Co‐interest | |