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. |
No journal entry is required for the cancellation of ………. Share capital |
| A. | Unissued |
| B. | paid up |
| C. | Subscribed |
| D. | none |
| Answer» B. paid up | |
| 2. |
Acceptances, endorsements and obligations on behalf of a customer will be shown as----- in the balance sheet of a company. |
| A. | other asset |
| B. | other liability |
| C. | borrowings |
| D. | contingent liability |
| Answer» E. | |
| 3. |
Requirements given in part II of the schedule VI apply to ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ |
| A. | The Trading Account |
| B. | The Profit and Loss Account |
| C. | The balance sheet |
| D. | Final Accounts |
| Answer» C. The balance sheet | |
| 4. |
Rebate on bills discounted is shown on the ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ side of the balance sheet |
| A. | Asset |
| B. | Liability |
| C. | Credit |
| D. | Debit |
| Answer» C. Credit | |
| 5. |
Schedule 1 is concerned with |
| A. | Capital |
| B. | Reserves and surplus |
| C. | interest earned |
| D. | none |
| Answer» B. Reserves and surplus | |
| 6. |
When the proposed dividend is more than 20 %, an amount equal to ‐‐‐‐‐‐‐‐‐‐‐ of the current profitsmust be transferred to reserve. |
| A. | 5% |
| B. | 7.5% |
| C. | 2.5% |
| D. | 10% |
| Answer» E. | |
| 7. |
When the directors refund the fees already received by them,……. a/c iscredited. |
| A. | cash |
| B. | Capital reduction |
| C. | directors |
| D. | fees |
| Answer» C. directors | |
| 8. |
…………..shares are repayable after the expiry of the fixed period or at the option of thecompany. |
| A. | Participating |
| B. | Convertible |
| C. | Cumulative |
| D. | Redeemable |
| Answer» E. | |
| 9. |
After the implementation of scheme of internal reconstruction, any amount left in thecapital reduction A/C will be transfer to: |
| A. | Capital Reserve A/C |
| B. | Capital A/c |
| C. | Profit & Loss A/C |
| D. | Shareholders A/C |
| Answer» B. Capital A/c | |
| 10. |
The Enterprise Resource Planning software are of…………………………..proposals. |
| A. | Higher |
| B. | Lower |
| C. | Average |
| D. | simple |
| Answer» B. Lower | |
| 11. |
Unrealised profit on goods sold and included in stock is deducted from : |
| A. | Capital Profit |
| B. | Revenue Profit |
| C. | Fixed Assets |
| D. | Minority interest |
| Answer» C. Fixed Assets | |
| 12. |
Capital Redemption Reserve Account and Securities Premium Account can be only for issuing fullypaid Bonus Shares and not for making partly paid shares into ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ |
| A. | Fully paid |
| B. | Partly paid |
| C. | Converted |
| D. | None of these. |
| Answer» B. Partly paid | |
| 13. |
Banks are required to prepare final accounts for each ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ year |
| A. | Financial year |
| B. | Calendar year |
| C. | Previous year |
| D. | None of these. |
| Answer» B. Calendar year | |
| 14. |
Which of the following does not include under the head other assets |
| A. | silver |
| B. | interest accrued |
| C. | gold |
| D. | inter office adjustment |
| Answer» D. inter office adjustment | |
| 15. |
NPA for a period not exceeding 12 months is called as ----- asset. |
| A. | loss |
| B. | standard |
| C. | sub-standard |
| D. | doubtful |
| Answer» D. doubtful | |
| 16. |
The method of rapidly posting entries in the books of banks is called as ………. |
| A. | Single Entry |
| B. | Cash Method |
| C. | Slip System |
| D. | None of these |
| Answer» D. None of these | |
| 17. |
The company in which the liability of members is liable to pay the agreed amount at thetime of winding up is called as ………….. |
| A. | Unlimited Company |
| B. | Company limited by shares |
| C. | Company limited by guarantee |
| D. | Liquidating Company |
| Answer» D. Liquidating Company | |
| 18. |
In internal reconstruction, increase in the value of fixed assets is credited to………. |
| A. | Capital reserve |
| B. | Share capital |
| C. | General reserve |
| D. | Capital reduction account |
| Answer» E. | |
| 19. |
Internal reconstruction is done due to ……….. |
| A. | Accumulated losses |
| B. | Shortage of working capital |
| C. | Large amount of fictitious assets |
| D. | All of these |
| Answer» E. | |
| 20. |
While calculating purchase consideration ............... values of assets is to beconsidered. |
| A. | Book value |
| B. | Revalued price |
| C. | Average price |
| D. | Capital |
| Answer» C. Average price | |
| 21. |
The rate of discount should not exceed ……………. Of nominal vale of shares. |
| A. | 10% |
| B. | 5% |
| C. | 6% |
| D. | 7% |
| Answer» B. 5% | |
| 22. |
Rights shares are those shares which are __________. |
| A. | first offered to the existing shareholders |
| B. | issued by a newly formed company. |
| C. | issued to the directors of the company. |
| D. | issued to holders of convertible debentures. |
| Answer» B. issued by a newly formed company. | |
| 23. |
Capital Reduction Account is a ……….. |
| A. | Nominal Account |
| B. | Permanent Account |
| C. | Temporary Account |
| D. | None of these |
| Answer» D. None of these | |
| 24. |
CDT stands for…. |
| A. | Company Direct Tax |
| B. | Corporate Dividend Tax |
| C. | Combined Direct Tax |
| D. | None of these |
| Answer» C. Combined Direct Tax | |
| 25. |
………… is a statutory reserve |
| A. | General Reserve |
| B. | Export profit reserve |
| C. | Dividend equalization reserve |
| D. | Capital Reserve |
| Answer» C. Dividend equalization reserve | |
| 26. |
In order to know ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ value of shares, it is necessary to know the net value of the assetsof the company. |
| A. | Intrinsic value |
| B. | Yield value |
| C. | Fair value |
| D. | None of these |
| Answer» B. Yield value | |
| 27. |
The agreement of insurance is called as ……….. |
| A. | Policy |
| B. | Premium |
| C. | Annuity |
| D. | None of these |
| Answer» B. Premium | |
| 28. |
Financial accounting is concerned with – |
| A. | Recording of business expenses and revenue |
| B. | Recording of costs of products and services |
| C. | Recording of day to day business transactions |
| D. | None of the above |
| Answer» D. None of the above | |
| 29. |
Capital of a company can be reduced by ………… |
| A. | Authorization of Articles |
| B. | Passing of a special resolution |
| C. | Confirmation of court |
| D. | All of these |
| Answer» E. | |
| 30. |
The choice of customized accounting packages is made on the basis of the…………. |
| A. | Vendor |
| B. | Purchaser |
| C. | Buyer |
| D. | Client |
| Answer» B. Purchaser | |
| 31. |
FCD stands for …………… |
| A. | Fixed Charge Debentures |
| B. | Floating Charge Debentures |
| C. | Fully Convertible Debentures |
| D. | None of these |
| Answer» D. None of these | |
| 32. |
------ is an annual payment made by a life insurance company in consideration forma lump sum received. |
| A. | claim |
| B. | annuity |
| C. | bonus |
| D. | premium |
| Answer» C. bonus | |
| 33. |
Under net asset method, value of a share depends on ___________. |
| A. | net assets available to equity shareholders |
| B. | net assets available to debentures holders |
| C. | net assets available to preference shareholders |
| D. | none of the above |
| Answer» B. net assets available to debentures holders | |
| 34. |
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of the following is not concerned with the valuation of goodwill. |
| A. | Earning capacity method |
| B. | Super profit method |
| C. | Average profit method |
| D. | None of these |
| Answer» B. Super profit method | |
| 35. |
Debenture represents ………. Of a company |
| A. | Borrowed capital |
| B. | Owned capital |
| C. | Hybrid capital |
| D. | None of these |
| Answer» B. Owned capital | |
| 36. |
After all the debentures are redeemed the balance in the sinking fund is transferred to |
| A. | General reserve |
| B. | statutory reserve |
| C. | both A and B |
| D. | none |
| Answer» B. statutory reserve | |
| 37. |
A contract that evidences a residual interest in the assets of an undertakingafter deducting all its liabilities is called |
| A. | bilateral contract |
| B. | equity instrument |
| C. | standard instrument |
| D. | none |
| Answer» C. standard instrument | |
| 38. |
Converting share of smaller denomination into larger denominations is called: |
| A. | Sub-division |
| B. | Combination |
| C. | Consolidation |
| D. | Merger |
| Answer» D. Merger | |
| 39. |
Section …… of the Companies Act 2013 deals with the issue of rightshares |
| A. | 62 |
| B. | 63 |
| C. | 64 |
| D. | 68 |
| Answer» B. 63 | |
| 40. |
The term current asset doesn’t cover |
| A. | Car |
| B. | Debtors |
| C. | Stock |
| D. | Prepaid expenses |
| Answer» B. Debtors | |
| 41. |
Preliminiary expenses incurred on the ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of a company. |
| A. | Formation |
| B. | Fluctuation |
| C. | Absorption |
| D. | Amalgamation |
| Answer» B. Fluctuation | |
| 42. |
When own debentures are cancelled, any profit on cancellation is transferred to …….. |
| A. | General Reserve |
| B. | Capital Reserve |
| C. | Profit and Loss A/c |
| D. | Debenture A/c |
| Answer» C. Profit and Loss A/c | |
| 43. |
In case of buyback of shares by a listed company, the letter of offer to theshareholders shall be dispatched not earlier than – |
| A. | 10 days from its submission to the SEBI in draft form |
| B. | 15 days from its submission to the SEBI in draft form |
| C. | 21 days from its submission to the SEBI in draft form |
| D. | 30 days from its submission to the SEBI in draft form |
| Answer» D. 30 days from its submission to the SEBI in draft form | |
| 44. |
Alteration of shares of smaller amounts into shares of larger amount is called ………. |
| A. | Subdivision of shares |
| B. | Consolidation of shares |
| C. | Cancellation of shares |
| D. | None of these |
| Answer» C. Cancellation of shares | |
| 45. |
Amalgamation adjustment account is opened in the books of Transferee Company toincorporate ………….. |
| A. | The assets o transferor company |
| B. | The statutory reserves of Transferor Company |
| C. | The liabilities of transferor company |
| D. | The statutory reserves of Transferee Company. |
| Answer» C. The liabilities of transferor company | |
| 46. |
The shares of a company only can be forfeited after giving a ………days notice |
| A. | 21 |
| B. | 14 |
| C. | 7 |
| D. | 30 |
| Answer» C. 7 | |
| 47. |
In company Final Accounts Goodwill is shown under…………… |
| A. | Current Liabilities |
| B. | Current Assets |
| C. | Fixed Assets |
| D. | Inventories |
| Answer» B. Current Assets | |
| 48. |
Insurance Regulatory and Development Authorities Act came in to effect in |
| A. | 2001 |
| B. | 2004 |
| C. | 1999 |
| D. | none of these |
| Answer» D. none of these | |
| 49. |
The accounting concept that is principally used to classify leases intooperating and finance is……. |
| A. | substance over from |
| B. | prudence |
| C. | neutrality |
| D. | completeness |
| Answer» B. prudence | |
| 50. |
Pre-acquisition profit in subsidiary company is considered as: |
| A. | Revenue Profit |
| B. | Capital Profit |
| C. | Goodwill |
| D. | None of the above |
| Answer» C. Goodwill | |