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. |
Which of the following is not a requirement in the financial statements under Ind AS 1? |
| A. | name of the entity |
| B. | chairman’s commentary on performance |
| C. | the accounting period |
| D. | presentation currency |
| Answer» C. the accounting period | |
| 2. |
Which of the following is not a component of a Statement of Financial Position? |
| A. | non-current assets |
| B. | retained earnings |
| C. | cost of goods sold |
| D. | deferred tax |
| Answer» D. deferred tax | |
| 3. |
When is offsetting permitted under Ind AS 1? |
| A. | always |
| B. | never |
| C. | when required or permitted under an ifrs |
| D. | when approved by the board of directors |
| Answer» D. when approved by the board of directors | |
| 4. |
Where should extraordinary items appear in an entity’s Statement of Comprehensive Income? |
| A. | other comprehensive income |
| B. | income statement |
| C. | notes |
| D. | nowhere |
| Answer» E. | |
| 5. |
How many formats are permitted for income and expense items under Ind AS 1? |
| A. | one |
| B. | two |
| C. | three |
| D. | four |
| Answer» C. three | |
| 6. |
Which sections of an annual report do IFRSs apply to? |
| A. | management report |
| B. | financial statements |
| C. | auditors report |
| D. | entire annual report |
| Answer» C. auditors report | |
| 7. |
What is the term used to describe the time between the acquisition of assets for processing andtheir realization in cash or cash equivalents? |
| A. | processing cycle |
| B. | turnover |
| C. | operating cycle |
| D. | turnaround |
| Answer» D. turnaround | |
| 8. |
Whether financial reviews by management, environment reports and value added financialstatements are outside the scope of international financial reporting standards (IFRSs)? |
| A. | yes |
| B. | no |
| C. | not mentioned in ifrs |
| D. | still in consideration |
| Answer» B. no | |
| 9. |
GAAP stands for |
| A. | generally accepted accounting principles |
| B. | globally accepted accounting practice |
| C. | generally allowable accounting principles |
| D. | generally allowable accounting practice |
| Answer» B. globally accepted accounting practice | |
| 10. |
As per IAS 1, Presentation of financial statement, ______ no of items would constitutecomplete set of financial statements. |
| A. | atleast 5 |
| B. | atleast 6 |
| C. | 5 |
| D. | 6 |
| Answer» E. | |
| 11. |
What is the transition date of IFRS in India? |
| A. | april 1, 2010 |
| B. | april 1, 2011 |
| C. | april 1, 2012 |
| D. | april 1, 2008 |
| Answer» C. april 1, 2012 | |
| 12. |
Total no of interpretations applicable till date? |
| A. | 24 |
| B. | 26 |
| C. | 28 |
| D. | 30 |
| Answer» D. 30 | |
| 13. |
How many IFRS are in force as of now? |
| A. | 65 |
| B. | 36 |
| C. | 37 |
| D. | 38 |
| Answer» B. 36 | |
| 14. |
Generally, debentures are |
| A. | Unsecured |
| B. | Secured |
| C. | Converted |
| D. | Bearer |
| Answer» C. Converted | |
| 15. |
Enterprise resource planning is an …………………………….. |
| A. | Accounting Package. |
| B. | Accounting software |
| C. | Accounting estimates |
| D. | none |
| Answer» C. Accounting estimates | |
| 16. |
…….of profit is transferred to statutory reserves. |
| A. | 10% |
| B. | 20% |
| C. | 25% |
| D. | 30% |
| Answer» D. 30% | |
| 17. |
Which of the following represents policy holders a/c? |
| A. | P/L a/c |
| B. | revenue a/c |
| C. | balance sheet |
| D. | none |
| Answer» C. balance sheet | |
| 18. |
Preliminary expenses not written off are shown in the balance sheet under the head… |
| A. | Current Assets |
| B. | Investments |
| C. | Current Liabilities |
| D. | Miscellaneous Expenditure |
| Answer» E. | |
| 19. |
Preference shareholders are legally entitled to the repayment of capital in the event ofliquidation of the company. |
| A. | True |
| B. | False |
| C. | none |
| D. | none |
| Answer» C. none | |
| 20. |
Fair value is not the average of intrinsic value and yield value. |
| A. | True |
| B. | False |
| C. | none |
| D. | none |
| Answer» C. none | |
| 21. |
……..is a charge against profit of the company |
| A. | Provision |
| B. | Reserves |
| C. | Surplus |
| D. | All of these |
| Answer» B. Reserves | |
| 22. |
Profit on re‐issue of forfeited shares will appear on the ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ side of the balance sheet. |
| A. | Asset side |
| B. | Liability side |
| C. | Debit side |
| D. | Credit side. |
| Answer» C. Debit side | |
| 23. |
Compulsory cancellation of shares by the company\y due to non‐payment of allotment orcall money is called ……………. |
| A. | Surrender of Shares |
| B. | Buy back of shares |
| C. | Forfeiture of shares |
| D. | All of these |
| Answer» D. All of these | |
| 24. |
Which of these best explains fixed assets? |
| A. | Are bought to be used in the business. |
| B. | Are expensive items bought for the business |
| C. | Are items which will not wear out quickly |
| D. | Are of long life and are not purchased specifically for resale |
| Answer» B. Are expensive items bought for the business | |
| 25. |
The term banking is defined in section …. |
| A. | section 5 of banking regulation Act |
| B. | section 4 |
| C. | section 7 |
| D. | none of these |
| Answer» B. section 4 | |
| 26. |
Which of the following statement is true: |
| A. | There is no change in the amount of capital reserve before and after issue of bonus share of the issue is made from out of pre-acquisition profit. |
| B. | There is change in the amount of capital reserve before and after issue of bonus share of the issue is made from out of post-acquisition profit. |
| C. | There is change in the amount of capital reserve before and after issue of bonus share of the issue is made from out of pre-acquisition profit. |
| D. | There is no connection between the issue of bonus shares and the calculation of capital reserve. |
| Answer» B. There is change in the amount of capital reserve before and after issue of bonus share of the issue is made from out of post-acquisition profit. | |
| 27. |
The security premium account is shown in the balance sheet under the head………. |
| A. | Share capital |
| B. | Reserves & Surplus |
| C. | Secured loans |
| D. | Current liabilities |
| Answer» C. Secured loans | |
| 28. |
….. lease is a lease that transfers substantially all the risks and rewardsincidental o ownership of assets |
| A. | finance |
| B. | operating |
| C. | advanced |
| D. | maturity |
| Answer» B. operating | |
| 29. |
……….is the first stage in the formation of a public company |
| A. | Promotion |
| B. | Incorporation |
| C. | Capital Subscription |
| D. | Commencement |
| Answer» B. Incorporation | |
| 30. |
A Ltd. and B Ltd. go into liquidation and a new company X Ltd. is formed. It is a case of: |
| A. | Absorption |
| B. | External reconstruction |
| C. | Amalgamation. |
| D. | none |
| Answer» D. none | |
| 31. |
The …………..has a legal right of forfeiting the shares of those who fail to pay theamount due. |
| A. | Liquidator |
| B. | Company |
| C. | Government |
| D. | directors |
| Answer» B. Company | |
| 32. |
Holdings of minority will …………………by the number of bonus shares received bythem. |
| A. | Increase |
| B. | Decrease |
| C. | Remain same |
| D. | None of the above |
| Answer» B. Decrease | |
| 33. |
A subsidiary company shall be excluded from consolidation when: |
| A. | Control is intended to be temporary |
| B. | It operates under severe long-term restrictions which significantly impair its ability to transfer funds to the parent |
| C. | Always included for consolidation |
| D. | Both a and b. |
| Answer» E. | |
| 34. |
Face value of debentures of subsidiary company, held by holding co.is deductedfrom: |
| A. | Debentures |
| B. | Cost of Control |
| C. | Minority Interest. |
| D. | Goodwill. |
| Answer» C. Minority Interest. | |
| 35. |
Fictitious Assets shown on the Asset side of the ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ |
| A. | Project and loss account |
| B. | Income statement |
| C. | Balance sheet |
| D. | Revenue account. |
| Answer» D. Revenue account. | |
| 36. |
Pooling of interest method is used in the case of …………….. |
| A. | Amalgamation in the nature of purchase |
| B. | External reconstruction |
| C. | Amalgamation in the nature of merger |
| D. | Internal reconstruction |
| Answer» D. Internal reconstruction | |
| 37. |
Debenture is a written ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of debt of a company |
| A. | Articles |
| B. | Acknowledgement |
| C. | Payment |
| D. | None of these. |
| Answer» C. Payment | |
| 38. |
A company being a creation of law cannot die a natural death. It comes to an end bylaw through the process of liquidation |
| A. | True |
| B. | False |
| C. | none |
| D. | none |
| Answer» B. False | |
| 39. |
Consistency refers to the ability of the computers of perform a variety oftasks, simple as well as complex. |
| A. | True |
| B. | False |
| C. | none |
| D. | none |
| Answer» C. none | |
| 40. |
The most important income of a bank is |
| A. | commission |
| B. | interest |
| C. | registration fee |
| D. | locker rent |
| Answer» C. registration fee | |
| 41. |
…………debentures are secured by the assets of the company |
| A. | Naked |
| B. | Mortgage |
| C. | Registered |
| D. | Bearer |
| Answer» C. Registered | |
| 42. |
………………….on shares have priority over payment of paid up share capital ofthat class. |
| A. | Calls in advance |
| B. | Calls in arrears |
| C. | Partially paid up shares. |
| D. | Debentures |
| Answer» B. Calls in arrears | |
| 43. |
A company formed and registered under ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐Act 1956. |
| A. | Partnership |
| B. | Companies |
| C. | Banking companies |
| D. | none of these. |
| Answer» C. Banking companies | |
| 44. |
When shares are issued at a price higher than their face value, it is called issue at………….. |
| A. | Par |
| B. | Premium |
| C. | Discount |
| D. | None of these |
| Answer» C. Discount | |
| 45. |
A ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ company required to prepare its project and loss account according to Form B inthe Schedule III to the Banking Regulation Act. |
| A. | Insurance company |
| B. | Joint stock company |
| C. | Banking company |
| D. | None of these. |
| Answer» D. None of these. | |
| 46. |
Debenture holders are ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of a company. |
| A. | Owners |
| B. | Creditors |
| C. | Debtors |
| D. | None of these |
| Answer» C. Debtors | |
| 47. |
If the two companies have different accounting policies in respect of the same item, then they make necessary changes to adopt .............. accounting policies. |
| A. | Same |
| B. | Different |
| C. | Important |
| D. | Some |
| Answer» B. Different | |
| 48. |
Gross assets are 1,01,000, fictitious assets 350 are included in the gross assets. External liabilities are 7,500. 6% preference share capital is 45,000. Equity capital is 4,500 equity shares of 10 each fully paid. Average expected profit is 8,500. Transfer to reserves is 10% preference dividend is payable. NRR is 9%. The Net Asset Value Per share is ___________. |
| A. | 11 |
| B. | 10.70 |
| C. | 15 |
| D. | 20 |
| Answer» C. 15 | |
| 49. |
In case of subdivision of share capital, the total number of shares ………. |
| A. | Increases |
| B. | Decreases |
| C. | Does not change |
| D. | None of these |
| Answer» B. Decreases | |
| 50. |
In case of consolidation of share capital, the total number of shares …………. |
| A. | Increases |
| B. | Decreases |
| C. | Does not change |
| D. | None of these |
| Answer» C. Does not change | |