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. |
SLR stands for …………… |
| A. | Savings Level Ratio |
| B. | Statutory Liquidity Ratio |
| C. | Standard Liquidity Ratio |
| D. | None of these |
| Answer» C. Standard Liquidity Ratio | |
| 2. |
Debentures are normally paid back after the expiry of the period this is technically called ‐‐‐‐‐‐‐‐‐‐‐‐. |
| A. | Renewal |
| B. | Redemption |
| C. | Conversion |
| D. | Forfeiture |
| Answer» C. Conversion | |
| 3. |
……………….is the amount payable by the purchasing companies to the vendorcompany for taking over the business of vendor company. |
| A. | Goodwill |
| B. | Total assets |
| C. | Purchase consideration |
| D. | None of these |
| Answer» D. None of these | |
| 4. |
………………………………………………..method the amount of depreciation expenses remains same throughout the useful life of a fixed assets |
| A. | Straight line method |
| B. | Annuity methods |
| C. | Purchase value method |
| D. | Written down value methods |
| Answer» B. Annuity methods | |
| 5. |
Compulsory winding up: |
| A. | If a company unable to pay its debt |
| B. | If the number of members of company reduced below statutory limit. |
| C. | If a company does commence its business within a year from its incorporation. |
| D. | All of the above. |
| Answer» E. | |
| 6. |
Internal reconstruction is a slow and tedious process since it required the approval of : |
| A. | Court |
| B. | Shareholders |
| C. | Creditors |
| D. | All of the Above. |
| Answer» E. | |
| 7. |
Banks show provision for income tax under the head |
| A. | Contingency Account |
| B. | Other liabilities |
| C. | Contingent liabilities |
| D. | None of these. |
| Answer» C. Contingent liabilities | |
| 8. |
…………..debentures can be transferred only with the knowledge of the company. |
| A. | Naked |
| B. | Mortgage |
| C. | Registered |
| D. | Bearer |
| Answer» D. Bearer | |
| 9. |
Out of the unrealized profits, a holding company’s share is reduced from the stock and |
| A. | Profit & Loss A/C |
| B. | Goodwill. |
| C. | Minority Interest |
| D. | Capital A/C |
| Answer» B. Goodwill. | |
| 10. |
A company required to prepare in profit & loss Account according to ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ in to IIIschedule to the banking regulation Act. |
| A. | Form A |
| B. | Form B |
| C. | Form C |
| D. | Form D |
| Answer» C. Form C | |
| 11. |
………..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 | |
| 12. |
Fair value of a share is equal to ___________. |
| A. | Intrinsic value only |
| B. | Yield value only |
| C. | Average of intrinsic and yield value |
| D. | None of the above |
| Answer» D. None of the above | |
| 13. |
The fixed assets of an insurance company are shown in |
| A. | Schedule 6 |
| B. | Schedule 7 |
| C. | Schedule 8 |
| D. | none |
| Answer» E. | |
| 14. |
IFRS….. deals with business combination |
| A. | IFRS 4 |
| B. | IFRS 3 |
| C. | IFRS 6 |
| D. | none |
| Answer» C. IFRS 6 | |
| 15. |
Companies have a statutory obligation to prepare final Accounts required by section 210 of the ‐‐‐‐‐‐‐‐‐‐‐‐1956. |
| A. | Partnership Act |
| B. | Banking Regulation Act |
| C. | Insurance Act |
| D. | Companies act. |
| Answer» E. | |
| 16. |
No company limited by shares shall issue any preference share which isredeemable after the expiry of …….. years from the date of issue. |
| A. | 20 |
| B. | 15 |
| C. | 10 |
| D. | 25 |
| Answer» B. 15 | |
| 17. |
Share holders cannot increase the rate of ‐‐‐‐‐‐‐‐‐ recomened by the Boared of Directors. |
| A. | Interest |
| B. | Profit |
| C. | Dividend |
| D. | None of these. |
| Answer» D. None of these. | |
| 18. |
The company earns a net profit of 24,000 with a capital of1,20,000. The NRR is10%. Under capitalisation of super profit, goodwill will be ___________. |
| A. | 1,20,000 |
| B. | 70,000 |
| C. | 12,000 |
| D. | 24,000 |
| Answer» B. 70,000 | |
| 19. |
Dividend declared between two ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is known as interim dividend |
| A. | Annual general meeting |
| B. | Directors meeting |
| C. | Special meeting |
| D. | Board meeting |
| Answer» B. Directors meeting | |
| 20. |
Purchase consideration is payable to ………….. |
| A. | Creditors |
| B. | Shareholders |
| C. | Debenture holders |
| D. | All of these |
| Answer» C. Debenture holders | |
| 21. |
A ‐‐‐‐‐‐‐‐‐‐‐‐ loan is payable on demand |
| A. | Short term Loan |
| B. | Demand Loan |
| C. | Fixed Loan |
| D. | Long term Loan |
| Answer» C. Fixed Loan | |
| 22. |
In a pre-packaged accounting software reports are generated from the softwarecould be the…………………………. |
| A. | Package |
| B. | Plan |
| C. | Course |
| D. | none |
| Answer» B. Plan | |
| 23. |
Change in accounting estimate is __________ |
| A. | Prior Period Item |
| B. | Change in accounting policy |
| C. | Extra-ordinary item |
| D. | Ordinary item |
| Answer» C. Extra-ordinary item | |
| 24. |
The security premium account is shown in the balance sheetunder the head………. |
| A. | Share capital |
| B. | Reserves & Surplus |
| C. | Secured loans |
| D. | Current liabilit |
| Answer» C. Secured loans | |
| 25. |
As per ………..it is the statutory obligation of companies to prepare their final accounts. |
| A. | Sec 210 |
| B. | Sec 211 |
| C. | Sec 212 |
| D. | Sec 214 |
| Answer» B. Sec 211 | |
| 26. |
No profits and Loss Appropriation Account is prepared in case of a ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ company. |
| A. | Company |
| B. | Partnership |
| C. | Banking company |
| D. | None of these, |
| Answer» D. None of these, | |
| 27. |
Schedule 9 relates to…. |
| A. | fixed assets |
| B. | borrowings |
| C. | advances |
| D. | capital |
| Answer» D. capital | |
| 28. |
As per AS–14 purchase consideration is what is payable to |
| A. | Shareholders |
| B. | Creditors |
| C. | Debenture holders |
| D. | Shareholders and Debenture holders. |
| Answer» B. Creditors | |
| 29. |
Which of the following is not a preferential creditors: |
| A. | All sum due to employee from a provident fund, pension fund, gratuity fund or any other fund maintain for welfare of employee. |
| B. | Compensation under workmen’s compensation act. |
| C. | Amount due under employee’s state insurance act for 12 months previous to the winding up |
| D. | Amount due to employee under amalgamation or reconstruction |
| Answer» E. | |
| 30. |
Preparation of Holding Companies Accounts Deals with : |
| A. | AS-22 |
| B. | AS-21 |
| C. | AS-25 |
| D. | AS-12 |
| Answer» C. AS-25 | |
| 31. |
The long term assets that have no physical existence but, possess a value isknown as, |
| A. | Current assets |
| B. | Fixed assets |
| C. | Intangible assets |
| D. | Investments |
| Answer» D. Investments | |
| 32. |
Life insurance is a contract of…… |
| A. | indemnity |
| B. | guarantee |
| C. | contribution . |
| D. | none of these |
| Answer» C. contribution . | |
| 33. |
Banking companies are governed in India by ………. |
| A. | Banking Regulation Act |
| B. | Indian Companies Act |
| C. | Reserve Bank of India Act |
| D. | All of these |
| Answer» B. Indian Companies Act | |
| 34. |
In …………., the insurer agrees to pay a certain sum of money to the policyholder either onhis death or a certain age, which ever is less. |
| A. | Fire Insurance |
| B. | Marine Insurance |
| C. | Burglary Insurance |
| D. | Life Insurance |
| Answer» E. | |
| 35. |
When shares are forfeited the share capital account is debited by ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ |
| A. | Calls‐in‐arrears |
| B. | Called up amount |
| C. | Paid up amount |
| D. | Subscribed amount |
| Answer» D. Subscribed amount | |
| 36. |
Which of the following are performing assets? |
| A. | Loss asset |
| B. | Standard asset |
| C. | Sub-standard asset |
| D. | doubtful asset |
| Answer» C. Sub-standard asset | |
| 37. |
Excess of paid up value of the shares over cost of investment is considered as: |
| A. | Goodwill |
| B. | Capital Reserve |
| C. | Minority Interest |
| D. | Non of above |
| Answer» B. Capital Reserve | |
| 38. |
Preference shareholders are………… |
| A. | Debtors of the company |
| B. | Creditors of the company |
| C. | Owners of the company |
| D. | None of these |
| Answer» D. None of these | |
| 39. |
Fixed assets and current assets are categorized as per concept of: |
| A. | Separate entity |
| B. | Going concern |
| C. | Consistency |
| D. | Time period |
| Answer» C. Consistency | |
| 40. |
Banks show the provisions for income tax under the head |
| A. | contingency accounts |
| B. | contingent liability |
| C. | other liabilities and provisions |
| D. | borrowings |
| Answer» D. borrowings | |
| 41. |
Which of the following is an example for divisible profit? |
| A. | General Reserve |
| B. | Security premium |
| C. | Forfeited shares |
| D. | All of these. |
| Answer» B. Security premium | |
| 42. |
While calculating purchase price, the following values of assets are considered |
| A. | Book value |
| B. | New values fixed |
| C. | Average values |
| D. | Market values |
| Answer» D. Market values | |
| 43. |
………………………….. value depends on Net assets. |
| A. | Yield value |
| B. | Fair value |
| C. | Intrinsic value |
| D. | none |
| Answer» D. none | |
| 44. |
A company registered with Registrar of Companies under Indian Companies Act is calledas……….. |
| A. | Government |
| B. | Registered |
| C. | Chartered |
| D. | Statutory |
| Answer» C. Chartered | |
| 45. |
If a company makes a default in delivering the to the registrar or n holding thestatutory meeting, then company is compulsorily wound up by the court. |
| A. | Audit report |
| B. | Income tax report |
| C. | Statutory report |
| D. | Financial Statement |
| Answer» D. Financial Statement | |
| 46. |
A computer sometimes is also termed as 'electronic brain' |
| A. | True |
| B. | False |
| C. | none |
| D. | none |
| Answer» B. False | |
| 47. |
Which of the following is not an advance given by a bank? |
| A. | loan |
| B. | overdraft |
| C. | deposit |
| D. | cash credit |
| Answer» D. cash credit | |
| 48. |
Profit and Loss Account of General Insurance Companies are prepared in ………… |
| A. | Form A‐PL |
| B. | Form B‐RA |
| C. | Form B‐PL |
| D. | Form B‐BS |
| Answer» D. Form B‐BS | |
| 49. |
Buy back of equity shares is a process of capital …….. |
| A. | reduction |
| B. | restructuring |
| C. | control |
| D. | none |
| Answer» C. control | |
| 50. |
Find the odd one:‐ |
| A. | To issue fully paid bonus shares |
| B. | To Write off preliminary expenses |
| C. | To distribute dividend in cash |
| D. | To pay Premium payable on redemption of shares or debentures. |
| Answer» D. To pay Premium payable on redemption of shares or debentures. | |