2081 + Mcqs in Accounting McqOptions

1.	Bonus issues ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ even when the shares are partly paid.
A.	Can be made
B.	Cannot be made
C.	Both of them.
D.	None of these
Answer» B. Cannot be made

Discussion

2.	Interest on debenture is ……….
A.	Adjustment of profit
B.	Appropriation of Profit.
C.	Charge on profit
D.	None of these
Answer» D. None of these

Discussion

3.	Transfer to capital redemption reserve can be made from ____.
A.	capital reserve.
B.	forfeited shares.
C.	general reserve
D.	securities
Answer» D. securities

Discussion

4.	CRR stands for …………
A.	Current Reserve Ratio
B.	Capital Reserve Ratio
C.	Cash Reserve Ratio
D.	Capital Redemption Ratio
Answer» D. Capital Redemption Ratio

Discussion

5.	Capital Redemption Reserve Account can be utilized for………
A.	Writing off past losses
B.	Issuing partly paid bonus shares
C.	Writing off capital losses
D.	Issuing fully paid bonus shares
Answer» E.

Discussion

6.	………… is shown under Schedule 15.
A.	Interest earned
B.	Profit
C.	Interest Expended
D.	Appropriations
Answer» D. Appropriations

Discussion

7.	Repeating the same results without any variations irrespective of the number of timesthe program is run is known as……………………
A.	Simple
B.	Complex
C.	Flexible
D.	Consistency
Answer» E.

Discussion

8.	In the balance sheet forfeited shares amount is to be added to ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.
A.	Share capital
B.	Reserve
C.	Surplus
D.	None of these
Answer» B. Reserve

Discussion

9.	In net Assets method all liabilities are consider.
A.	True
B.	False
C.	none
D.	none
Answer» C. none

Discussion

10.	Rebate on bills discounted is ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
A.	An item of income
B.	Income received in advance
C.	An asset
D.	Income accrued
Answer» C. An asset

Discussion

11.	Ordinarily ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ are not available for the distribution of dividend.
A.	Revenue profits
B.	Capital profits
C.	Gross profit
D.	Net profit
Answer» C. Gross profit

Discussion

12.	………..of total issued amount of capital is called minimum subscription.
A.	75%
B.	90%
C.	95%
D.	80%
Answer» C. 95%

Discussion

13.	The commission given by insurance companies to others for receiving business underreinsurance is called …………………
A.	Commission on reinsurance accepted
B.	Agents’ commission
C.	Commission on reinsurance ceded
D.	None of these
Answer» B. Agents’ commission

Discussion

14.	The balance in Capital Reduction Account is transferred to …………
A.	General Reserve
B.	Profit and loss Account
C.	Capital Reserve
D.	Goodwill Account
Answer» D. Goodwill Account

Discussion

15.	Rebate on bills discounted is also called --------
A.	Unexpired discount
B.	Earned discount
C.	Expired discount
D.	received discount
Answer» B. Earned discount

Discussion

16.	Fictitious assets are shown on the ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐side of the balance sheet.
A.	Liability side
B.	Income
C.	Balance sheet
D.	Assets
Answer» E.

Discussion

17.	Which Exchange rate will be considered for conversion of share capital of subsidiarycompany.
A.	Opening Rate
B.	Closing rate
C.	Average Rate
D.	Rate of which date share acquired (actual)
Answer» E.

Discussion

18.	Dividend declared between two Annual General Meetings.
A.	Final dividend
B.	Proposed dividend
C.	Unclaimed dividend
D.	Interim dividend
Answer» E.

Discussion

19.	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.

Discussion

20.	When purchasing company pays purchase consideration, it will be debited to
A.	Business purchase account
B.	Assets account
C.	Liquidator of selling company’s account
D.	none
Answer» D. none

Discussion

21.	Increase in the price of various goods and services over a period of time isknown as ___________________
A.	Deflation
B.	Price Level Changes
C.	Shift
D.	Inflation
Answer» E.

Discussion

22.	_________ highlights both the contribution of business enterprises toeconomic wellbeing and the costs imposed in the form of pollution or resource degradation.
A.	Social Accounting
B.	Environmental Accounting
C.	Inflation Accounting
D.	None of the above
Answer» C. Inflation Accounting

Discussion

23.	A ____________ is a lease that transfers substantially all the risks andrewards incidental to ownership of an asset. Title may or may not eventually be transferred.
A.	Finance lease
B.	Operating lease
C.	Lessor
D.	Contract
Answer» B. Operating lease

Discussion

24.	The objective of _________ is to establish the principles that an entity shallapply to report useful information to users of financial statements about the nature, amount, timing and uncertainty of revenue and cash flows arising from a contract with a customer.
A.	Ind AS 115
B.	Ind AS 100
C.	Ind AS 110
D.	Ind AS 114
Answer» B. Ind AS 100

Discussion

25.	___________ transactions are transactions between entities within a groupof entities and that group is consolidated into one set of Consolidated Financial Statements.
A.	Inter-group
B.	Intra-group
C.	Group
D.	Financial
Answer» C. Group

Discussion

26.	When one company takes over the management of the target company withthe permission of the board, it is known as ________________ takeover.
A.	Friendly
B.	Hostile
C.	Acquiring
D.	Disinvestment
Answer» B. Hostile

Discussion

27.	All business combinations must be treated as _________ for accountingpurposes.
A.	Acquisition
B.	Restructuring
C.	Merger
D.	Internal Construction
Answer» B. Restructuring

Discussion

28.	The main elements of environmental accountingare______________________.
A.	Environmental Conservation costs and activities and environmental benefits
B.	Environmental activities and environmental benefits
C.	Environmental conversion costs and environmental benefits
D.	None of the above
Answer» B. Environmental activities and environmental benefits

Discussion

29.	Goodwill on amalgamation can rise only if ________Method is followed.
A.	Valuation
B.	Percentage
C.	Purchase
D.	Merger
Answer» D. Merger

Discussion

30.	A form of corporate restructuring in which the entity's business operationsare segregated into one or more components is known as __________________.
A.	Horizontal
B.	Disinvestment
C.	Demerger
D.	Takeover
Answer» D. Takeover

Discussion

31.	_________________Accounting deals with employees and management inan organization.
A.	Inflation
B.	Human Resource
C.	Environment
D.	Forensic
Answer» C. Environment

Discussion

32.	Any agreement between two or more parties to collaborate with each other,in order to achieve certain objectives while continuing to remain independent organizations is called _______________.
A.	Strategic alliance
B.	Franchising
C.	Joint Venture
D.	Disinvestment
Answer» B. Franchising

Discussion

33.	Price for changes accounting can be done by the followingmethod__________________.
A.	Current purchasing power, Current Value Accounting
B.	Replacement Cost Accounting, Current Cost Accounting
C.	Both a and b
D.	None of the Above
Answer» D. None of the Above

Discussion

34.	Merger where two companies are in the same or related industries but do notoffer the same products, but related products and may share similar distribution channels, providing synergies for the merger is known as ____________ Merger.
A.	Horizontal
B.	Co generic
C.	Vertical
D.	Conglomerate
Answer» C. Vertical

Discussion

35.	A merger is defined as the joining of two or more companies to form asingle legal entity.
A.	Acquisition
B.	Restructuring
C.	Merger
D.	Internal Construction
Answer» D. Internal Construction

Discussion

36.	_____________ establishes the principles that an entity applies whenreporting information about the nature, amount, timing and uncertainty of revenue and cash flows from a contract with a customer.
A.	IFRS 18
B.	IFRS 14
C.	IFRS 15
D.	IFRS 17
Answer» D. IFRS 17

Discussion

37.	A ______________ is defined as an entity that provides the right to use anasset for a period of time in exchange for consideration.
A.	Contractor
B.	lessor
C.	Lessee
D.	None of the above
Answer» C. Lessee

Discussion

38.	______________________is the assistance of finance professionals to settledisputes concerning allegations, fraudulence, suspicion of fraud and misconduct in business.
A.	Forensic accounting
B.	Human Resource Accounting
C.	Financial Accounting
D.	Cost Accounting
Answer» B. Human Resource Accounting

Discussion

39.	____________ aims to measure and inform the general public about thesocial welfare activities undertaken by the enterprise and their effects on the society
A.	Corporate Accounting
B.	Forensic Accounting
C.	Social Audit
D.	Environmental Accounting
Answer» D. Environmental Accounting

Discussion

40.	The tax effect on the timing differences is termed as ___________________.
A.	Current Tax expense
B.	Income tax
C.	Deferred Tax
D.	Provision for tax
Answer» D. Provision for tax

Discussion

41.	The _____________ account appear in the Balance Sheet of the Holdingcompany at the time of consolidation.
A.	Bonus Share
B.	Security Premium
C.	share premium
D.	Capital Reserve
Answer» D. Capital Reserve

Discussion

42.	________________ provides information to the management regardinghuman resource cost and value.
A.	MIS
B.	Human Resource Accounting
C.	Financial Statements
D.	Cost Sheet
Answer» C. Financial Statements

Discussion

43.	A merger of two or more companies that compete in the same industry.
A.	Horizontal
B.	Conglomerate
C.	Vertical
D.	None of the above
Answer» B. Conglomerate

Discussion

44.	___________ establishes principles for presenting and preparingconsolidated financial statements when an entity controls one or more other entities.
A.	IFRS 12
B.	IFRS 17
C.	IFRS 10
D.	IFRS 11
Answer» D. IFRS 11

Discussion

45.	In finance lease agreement, the option for the lessee to purchase theproperty or equipment at a specific price is known as __________________________.
A.	Balloon
B.	Operating Leasing
C.	Running Cost
D.	Administrative Expense
Answer» B. Operating Leasing

Discussion

46.	Forensic Accounting is very much useful to _____________ industry.
A.	Banking
B.	Communication
C.	Insurance
D.	None of the above
Answer» D. None of the above

Discussion

47.	During inflation the purchasing power of money ___________________.
A.	Increases
B.	Does not change
C.	Shift
D.	Decreases
Answer» B. Does not change

Discussion

48.	_______________ are the financial statements of a group of companies.
A.	Subsidiary Accounts
B.	Group Accounts
C.	Holding Accounts
D.	None of the above
Answer» C. Holding Accounts

Discussion

49.	__________ is the corporate management term for the act of reorganizingthe legal, ownership, operational or other structures of a company for the purpose of making it more profitable or better organized for its present needs.
A.	Merger
B.	Restructuring
C.	External Reconstruction
D.	Consolidation
Answer» C. External Reconstruction

Discussion

50.	A _________ includes the income and expenses of a subsidiary in theconsolidated financial statements from the date it gains control until the date when the reporting entity ceases to control the subsidiary.
A.	Holding entity
B.	Reporting entity
C.	Group Accounts
D.	AS 110
Answer» C. Group Accounts

Discussion

Explore topic-wise MCQs in Testing Subject.

Bonus issues ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ even when the shares are partly paid.

Interest on debenture is ……….

Transfer to capital redemption reserve can be made from ____.

CRR stands for …………

Capital Redemption Reserve Account can be utilized for………

………… is shown under Schedule 15.

Repeating the same results without any variations irrespective of the number of timesthe program is run is known as……………………

In the balance sheet forfeited shares amount is to be added to ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.

In net Assets method all liabilities are consider.

Rebate on bills discounted is ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐

Ordinarily ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ are not available for the distribution of dividend.

………..of total issued amount of capital is called minimum subscription.

The commission given by insurance companies to others for receiving business underreinsurance is called …………………

The balance in Capital Reduction Account is transferred to …………

Rebate on bills discounted is also called --------

Fictitious assets are shown on the ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐side of the balance sheet.

Which Exchange rate will be considered for conversion of share capital of subsidiarycompany.

Dividend declared between two Annual General Meetings.

Minority Interest includes:

When purchasing company pays purchase consideration, it will be debited to

Increase in the price of various goods and services over a period of time isknown as ___________________

_________ highlights both the contribution of business enterprises toeconomic wellbeing and the costs imposed in the form of pollution or resource degradation.

A ____________ is a lease that transfers substantially all the risks andrewards incidental to ownership of an asset. Title may or may not eventually be transferred.

The objective of _________ is to establish the principles that an entity shallapply to report useful information to users of financial statements about the nature, amount, timing and uncertainty of revenue and cash flows arising from a contract with a customer.

___________ transactions are transactions between entities within a groupof entities and that group is consolidated into one set of Consolidated Financial Statements.

When one company takes over the management of the target company withthe permission of the board, it is known as ________________ takeover.

All business combinations must be treated as _________ for accountingpurposes.

The main elements of environmental accountingare______________________.

Goodwill on amalgamation can rise only if ________Method is followed.

A form of corporate restructuring in which the entity's business operationsare segregated into one or more components is known as __________________.

_________________Accounting deals with employees and management inan organization.

Any agreement between two or more parties to collaborate with each other,in order to achieve certain objectives while continuing to remain independent organizations is called _______________.

Price for changes accounting can be done by the followingmethod__________________.

Merger where two companies are in the same or related industries but do notoffer the same products, but related products and may share similar distribution channels, providing synergies for the merger is known as ____________ Merger.

A merger is defined as the joining of two or more companies to form asingle legal entity.

_____________ establishes the principles that an entity applies whenreporting information about the nature, amount, timing and uncertainty of revenue and cash flows from a contract with a customer.

A ______________ is defined as an entity that provides the right to use anasset for a period of time in exchange for consideration.

______________________is the assistance of finance professionals to settledisputes concerning allegations, fraudulence, suspicion of fraud and misconduct in business.

____________ aims to measure and inform the general public about thesocial welfare activities undertaken by the enterprise and their effects on the society

The tax effect on the timing differences is termed as ___________________.

The _____________ account appear in the Balance Sheet of the Holdingcompany at the time of consolidation.

________________ provides information to the management regardinghuman resource cost and value.

A merger of two or more companies that compete in the same industry.

___________ establishes principles for presenting and preparingconsolidated financial statements when an entity controls one or more other entities.

In finance lease agreement, the option for the lessee to purchase theproperty or equipment at a specific price is known as __________________________.

Forensic Accounting is very much useful to _____________ industry.

During inflation the purchasing power of money ___________________.

_______________ are the financial statements of a group of companies.

__________ is the corporate management term for the act of reorganizingthe legal, ownership, operational or other structures of a company for the purpose of making it more profitable or better organized for its present needs.

A _________ includes the income and expenses of a subsidiary in theconsolidated financial statements from the date it gains control until the date when the reporting entity ceases to control the subsidiary.