MCQOPTIONS
Saved Bookmarks
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. |
……….includes financial and cost accounting, tax planning and taxaccounting. |
| A. | financial accounting |
| B. | cost accounting |
| C. | management accounting |
| D. | none of these |
| Answer» D. none of these | |
| 2. |
….is a post mortem of past costs. |
| A. | financial accounting |
| B. | cost accounting |
| C. | both a & b |
| D. | none of these |
| Answer» B. cost accounting | |
| 3. |
………is the oldest branch of accounting. |
| A. | financial accounting |
| B. | cost accounting |
| C. | management accounting |
| D. | none of these |
| Answer» B. cost accounting | |
| 4. |
…..aids in price fixation. |
| A. | financial accounting |
| B. | cost accounting |
| C. | management accounting |
| D. | none of these |
| Answer» C. management accounting | |
| 5. |
helps in ascertaining costs beforehand. |
| A. | financial accounting |
| B. | cost accounting |
| C. | management accounting |
| D. | none of these |
| Answer» C. management accounting | |
| 6. |
……….provides information for income determination. |
| A. | financial accounting |
| B. | cost accounting |
| C. | management accounting |
| D. | none of these |
| Answer» B. cost accounting | |
| 7. |
Which of the following is not shown on the liability side of a balance sheet of a company |
| A. | authorized capital |
| B. | issued capital |
| C. | paid up capital |
| D. | reserve capital |
| Answer» E. | |
| 8. |
Share application account is a…. |
| A. | nominal |
| B. | real |
| C. | personal |
| D. | none of these |
| Answer» D. none of these | |
| 9. |
Penalty for delay in refunding application money |
| A. | 6% |
| B. | 5% |
| C. | 15% |
| D. | 20% |
| Answer» D. 20% | |
| 10. |
Conversion of physical shares in to electronic securities is called…. |
| A. | dematerialization |
| B. | price rigging |
| C. | re-materialization |
| D. | none of these |
| Answer» B. price rigging | |
| 11. |
Public limited companies cannot issue …. |
| A. | equity shares |
| B. | deferred shares |
| C. | preference shares |
| D. | right shares |
| Answer» C. preference shares | |
| 12. |
Preference shareholders are …. of the company |
| A. | creditors |
| B. | owners |
| C. | customers |
| D. | borrowers |
| Answer» C. customers | |
| 13. |
The minimum share application money is…. |
| A. | Re.1 /share |
| B. | 5% of the face value of share |
| C. | 10% of the issue price of share |
| D. | none of these |
| Answer» C. 10% of the issue price of share | |
| 14. |
The difference between subscribed capital and called capital is known as….. |
| A. | calls in advance |
| B. | paid up capital |
| C. | uncalled capital |
| D. | calls in arrear |
| Answer» D. calls in arrear | |
| 15. |
The rate of discount on issue of shares should not exceed …. % of the nominal value ofshares. |
| A. | 10 |
| B. | 2 |
| C. | 4 |
| D. | 5 |
| Answer» B. 2 | |
| 16. |
On calls in advance, interest is payable @ …. |
| A. | 5% |
| B. | 6% |
| C. | 4% |
| D. | Nil |
| Answer» C. 4% | |
| 17. |
Right shares are those shares which are issued to |
| A. | directors |
| B. | promoters |
| C. | existing shareholders |
| D. | none of these |
| Answer» D. none of these | |
| 18. |
After completing ….years a company can issue shares at discount. |
| A. | 2 |
| B. | 3 |
| C. | 1 |
| D. | 4 |
| Answer» D. 4 | |
| 19. |
The profit on reissue of shares is transferred to …. |
| A. | general reserve |
| B. | capital reserve |
| C. | P/L Account |
| D. | P/L Appropriation account |
| Answer» C. P/L Account | |
| 20. |
Voluntary return of shares by shareholders to the company for cancellation is called |
| A. | transfer of shares |
| B. | forfeiture of shares |
| C. | surrender of shares |
| D. | buyback of shares |
| Answer» D. buyback of shares | |
| 21. |
The minimum amount of capital which must be subscribed by the public beforeallotment is called |
| A. | allotment money |
| B. | Minimum subscription |
| C. | subscribed capital |
| D. | None of these |
| Answer» C. subscribed capital | |
| 22. |
That part of the capital which will be called up only in the event of winding up of thecompany is called ------- capital |
| A. | issued |
| B. | paid-up |
| C. | reserve |
| D. | uncalled |
| Answer» D. uncalled | |
| 23. |
Stock is a consolidation of …..Shares. |
| A. | partly paid shares |
| B. | fully paid shares. |
| C. | equity shares |
| D. | Sweat shares |
| Answer» C. equity shares | |
| 24. |
Those preference shares which do not carry the right of share in excess profits are knownas ------- preference shares. |
| A. | irredeemable |
| B. | non-cumulative |
| C. | non -convertible |
| D. | non-participating |
| Answer» E. | |
| 25. |
Preference share holders are entitled to a fixed rate of ------- |
| A. | interest |
| B. | dividend |
| C. | coupon |
| D. | capital |
| Answer» C. coupon | |
| 26. |
------ is deducted from the called- up capital in order to calculate paid-up capital. |
| A. | calls in arrear |
| B. | calls in advance |
| C. | un called capital |
| D. | reserve capital |
| Answer» B. calls in advance | |
| 27. |
On forfeiture of shares, which of the following account is credited with the amount ofmoney already received on such shares? |
| A. | shares forfeited a/c |
| B. | share capital a/c |
| C. | unpaid calls a/c |
| D. | share premium a/c |
| Answer» B. share capital a/c | |
| 28. |
Forfeiture of shares results in compulsory termination of ------ due to non payment ofallotment/call money. |
| A. | allotment |
| B. | membership |
| C. | subscription |
| D. | issue |
| Answer» C. subscription | |
| 29. |
The discount on re-issue of forfeited shares is debited to ---- a/c. |
| A. | share capital |
| B. | shares forfeited |
| C. | bank |
| D. | discount on issue of shares |
| Answer» C. bank | |
| 30. |
A company cannot issue redeemable preference shares for a period exceeding ………. |
| A. | 6 years |
| B. | 7years |
| C. | 10 years |
| D. | 20 years |
| Answer» E. | |
| 31. |
------ implies issue and allotment of shares to a selected group of persons and not togeneral public. |
| A. | initial public offer |
| B. | right issue |
| C. | private placement |
| D. | pre-emptive right |
| Answer» D. pre-emptive right | |
| 32. |
Right shares are issued to ------ |
| A. | directors |
| B. | promoters |
| C. | existing share holders |
| D. | debenture holders |
| Answer» D. debenture holders | |
| 33. |
Shares which carry preferential rights are called ------ |
| A. | equity shares |
| B. | preference shares |
| C. | sweaty equity |
| D. | green shoe |
| Answer» C. sweaty equity | |
| 34. |
Preference shares can be redeemed…. |
| A. | If they are fully paid up |
| B. | if they are partly paid up |
| C. | if they are convertible. |
| D. | None of these |
| Answer» B. if they are partly paid up | |
| 35. |
Premium on redemption of preference shares can be provided out of …. |
| A. | securities premium account |
| B. | capital reserve account |
| C. | general reserve account |
| D. | all of these |
| Answer» E. | |
| 36. |
At present, a company limited by shares cannot issue …..preference shares |
| A. | redeemable |
| B. | irredeemable |
| C. | convertible |
| D. | none of these |
| Answer» C. convertible | |
| 37. |
Capital redemption reserve is created out of |
| A. | Dividend equalization fund |
| B. | P/L account |
| C. | General reserve account |
| D. | All of these |
| Answer» E. | |
| 38. |
Capital redemption reserve can be utilized for… |
| A. | declaring dividend |
| B. | writing of capital losses |
| C. | issue of fully paid up bonus shares |
| D. | none of these |
| Answer» D. none of these | |
| 39. |
------- profit means profit which would otherwise be available for distribution ofdividend. |
| A. | capital |
| B. | gross |
| C. | net |
| D. | divisible |
| Answer» E. | |
| 40. |
Which of the following is not a source of redemption of preference shares? |
| A. | divisible profit |
| B. | securities premium a/c |
| C. | realization of asset |
| D. | proceeds of fresh issue |
| Answer» D. proceeds of fresh issue | |
| 41. |
The nominal value of preference shares to be redeemed can be provided out of ------ |
| A. | general reserve |
| B. | capital reserve |
| C. | CRR |
| D. | securities premium |
| Answer» B. capital reserve | |
| 42. |
Redemption of preference shares should not be regarded as reduction of ----- capital ofthe company. |
| A. | paid-up |
| B. | called-up |
| C. | subscribed |
| D. | authorized |
| Answer» E. | |
| 43. |
Buyback of shares should not exceed ….percent of paid up capital and free reserve of thecompany. |
| A. | 50% |
| B. | 10% |
| C. | 5% |
| D. | 25% |
| Answer» E. | |
| 44. |
Under the scheme of buyback of shares , the company in order to perform its obligations , is required to open an ….account |
| A. | fixed deposit |
| B. | escrow deposit |
| C. | savings deposit |
| D. | current deposit |
| Answer» C. savings deposit | |
| 45. |
Loss on issue or discount on issue of debenture is a…..asset |
| A. | tangible |
| B. | current |
| C. | fictitious |
| D. | none of these |
| Answer» D. none of these | |
| 46. |
Debenture holders are ….of the company |
| A. | owners |
| B. | creditors |
| C. | both |
| D. | none of these |
| Answer» C. both | |
| 47. |
Debenture represents ….of the company |
| A. | deposit |
| B. | overdraft |
| C. | loan |
| D. | none of these |
| Answer» D. none of these | |
| 48. |
When debentures are redeemed out of profits, an amount equal is transferred to….. |
| A. | CRR |
| B. | capital reserve |
| C. | revenue reserve |
| D. | debenture redemption reserve |
| Answer» E. | |
| 49. |
Profit on sale of sinking fund investment is credited to …. |
| A. | general reserve |
| B. | capital reserve |
| C. | sinking fund |
| D. | none of these |
| Answer» D. none of these | |
| 50. |
------ is a document which either creates or acknowledges a debt. |
| A. | debenture |
| B. | trust deed |
| C. | security |
| D. | Articles of Association |
| Answer» B. trust deed | |