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. |
Indian accounting standards are the International financial reporting standards converged standards issued by the central government of India under the supervision and control of accounting standards board of ICAI and in consultation with __________. |
| A. | Ministry of corporate affairs |
| B. | NFRA |
| C. | Accounting Standards Board |
| D. | All of the above |
| Answer» C. Accounting Standards Board | |
| 2. |
Depreciation arise because of……………………….. |
| A. | Abnormal quality |
| B. | Normal wear and tear |
| C. | Excessive use of a product |
| D. | Low quality product |
| Answer» C. Excessive use of a product | |
| 3. |
A bundle of fully paid shares is called…………….. |
| A. | Stock |
| B. | Sweat Equity |
| C. | Warrant |
| D. | None of these |
| Answer» B. Sweat Equity | |
| 4. |
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ declared between two annual general meeting is known as interim dividend |
| A. | Interest |
| B. | Dividend |
| C. | Final dividend |
| D. | Unclaimed dividend |
| Answer» C. Final dividend | |
| 5. |
Under Double account system, the balance sheet is prepared in ……parts |
| A. | three |
| B. | two |
| C. | one |
| D. | none |
| Answer» C. one | |
| 6. |
Calls in arrear is shown on the liability side of the balance sheet:‐ |
| A. | Under the heading current liabilities |
| B. | Under the head current assets |
| C. | Under the head fixed assets |
| D. | By deducting the amount from the called up capital |
| Answer» E. | |
| 7. |
At the time of …………………, inter company debts and acceptances are to becancelled out. |
| A. | Merger |
| B. | Absorption. |
| C. | Internal reconstruction. |
| D. | Consolidation. |
| Answer» E. | |
| 8. |
In absorption there is one ……………………and no formation. |
| A. | Merger |
| B. | Liquidation. |
| C. | Demerger |
| D. | Formation |
| Answer» C. Demerger | |
| 9. |
The ability with which the computers remain functional to serve the user is termedas…………………………………………………… |
| A. | Reliability |
| B. | Accuracy |
| C. | Flexible |
| D. | Measurable |
| Answer» B. Accuracy | |
| 10. |
In case of inter-company holdings, the purchasing company, at the time of payment of the purchase consideration, surrenders the shares in the vendor company by crediting: |
| A. | Vendor company's account |
| B. | Shares in the vendor company account |
| C. | Share capital account. |
| D. | none |
| Answer» C. Share capital account. | |
| 11. |
When 8,00,000 shares of Rs.10 each is converted in to 80,000 shares ofRs.100 each, it is a case of ……… |
| A. | sub division |
| B. | capital reduction |
| C. | consolidation |
| D. | none |
| Answer» D. none | |
| 12. |
Called up capital minus calls in appear is ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ |
| A. | Subscribed capital |
| B. | Registered capital |
| C. | Paid up capital |
| D. | Uncalled capital. |
| Answer» D. Uncalled capital. | |
| 13. |
In case of subdivision of share capital, the amount of share capital………. |
| A. | Increases |
| B. | Decreases |
| C. | Does not change |
| D. | None of these |
| Answer» D. None of these | |
| 14. |
……………is an instrument of acknowledgment of debt. |
| A. | Equity share |
| B. | Preference Share |
| C. | Debenture |
| D. | All of these |
| Answer» D. All of these | |
| 15. |
After the implementation of the scheme of internal reconstruction , any surplus incapital reduction A/C is transferred to : |
| A. | Capital A/C |
| B. | Profit & Loss A/C |
| C. | Shareholders A/C |
| D. | Capital reserve A/C |
| Answer» E. | |
| 16. |
The allotment of shares in case of oversubscription is called….. |
| A. | Pro‐rata allotment |
| B. | Private Placement |
| C. | Offer for sale |
| D. | None of these |
| Answer» B. Private Placement | |
| 17. |
Preparation of consolidated Balance Sheet of Holding Co. and its subsidiarycompany as per |
| A. | As 11 |
| B. | AS – 22 |
| C. | AS 21 |
| D. | AS – 23 |
| Answer» B. AS – 22 | |
| 18. |
Requirements given in part II of ‐‐‐‐‐‐‐‐‐‐‐‐‐apply to statement of profit or loss |
| A. | Schedule III |
| B. | Schedule IV |
| C. | Schedule V |
| D. | Schedule VI |
| Answer» E. | |
| 19. |
……………………reconstruction refers to the reduction of capital to cancel any paid upcapital. |
| A. | External |
| B. | Internal |
| C. | Amalagamation |
| D. | Absorption |
| Answer» C. Amalagamation | |
| 20. |
A company is managed by its……………. |
| A. | Partners |
| B. | Auditor |
| C. | Board of Directors |
| D. | Debenture holder |
| Answer» D. Debenture holder | |
| 21. |
Amalgamation is done for …………. |
| A. | Eliminating competition |
| B. | Dominating the market |
| C. | Enjoying the benefits of large scale operation |
| D. | All of these |
| Answer» E. | |
| 22. |
Fair value is the ……………… of intrinsic value and yield value. |
| A. | Average |
| B. | Total |
| C. | Net |
| D. | Difference |
| Answer» B. Total | |
| 23. |
Which of the following not the uses of share premium. |
| A. | Issue of partly paid bonus shares |
| B. | Issue of fully paid bonus shares |
| C. | Write off preliminary expense |
| D. | Write off expenses on the issue of shares. |
| Answer» C. Write off preliminary expense | |
| 24. |
Rebate on bills discounted is shown in the Balance Sheet as ------ |
| A. | Advances |
| B. | Other liabilities & provisions |
| C. | Other income |
| D. | reserves & surplus |
| Answer» C. Other income | |
| 25. |
Dividend is payable on the amount of………………………….. |
| A. | Profit |
| B. | Reserves |
| C. | Loss |
| D. | Income |
| Answer» B. Reserves | |
| 26. |
When shares are oversubscribed, allotment is made on ‐‐‐‐‐‐‐‐‐‐‐‐‐‐ basis |
| A. | First come first served |
| B. | Pro‐data |
| C. | Total |
| D. | None of these. |
| Answer» C. Total | |
| 27. |
IPO stands for ……………… |
| A. | Initial Private Offer |
| B. | International Public Offer |
| C. | Initial Public Offer |
| D. | International Private Offer |
| Answer» D. International Private Offer | |
| 28. |
The assets that can be easily converted into cash within a short period (i.e., 1year or less is known as, |
| A. | Current assets |
| B. | Fixed assets |
| C. | Intangible assets |
| D. | Investments |
| Answer» B. Fixed assets | |
| 29. |
When the Net Assets are less than the Purchase Consideration, the difference willbe |
| A. | Debited to Goodwill A/c. |
| B. | Debited to General Reserve |
| C. | none of these |
| D. | none |
| Answer» B. Debited to General Reserve | |
| 30. |
Fictitious Assets are shown on the asset side of the balance sheet of a company under the heading ‐‐‐‐‐‐‐‐‐‐‐ |
| A. | Fixed assets |
| B. | Current assets |
| C. | Tangible assets |
| D. | Miscellaneous Expenditure |
| Answer» E. | |
| 31. |
When the purchasing company bears the liquidation expenses, it will debit theexpenses to |
| A. | Vendor Company’s Account |
| B. | Bank Account |
| C. | Goodwill Account |
| D. | none |
| Answer» D. none | |
| 32. |
The difference between ‐‐‐‐‐‐‐‐‐‐‐‐‐‐ receivable and dividend received is debited to tax deducted atsource. |
| A. | Gross dividend |
| B. | Net dividend |
| C. | Average dividend |
| D. | Final dividend |
| Answer» B. Net dividend | |
| 33. |
Loss on realisation is transferred to ………….. |
| A. | Transferee Company Account |
| B. | Transferor Company Account |
| C. | Shareholders Account |
| D. | Creditors Account |
| Answer» D. Creditors Account | |
| 34. |
…….. deals with separate financial statements. |
| A. | Ind AS 110 |
| B. | Ind AS 100 |
| C. | Ind AS 112 |
| D. | Ind AS 120 |
| Answer» B. Ind AS 100 | |
| 35. |
Dividend paid are subject to ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ Tax @ 17% as per recent Finance Act |
| A. | Income Tax |
| B. | Gift Tax |
| C. | Corporate Dividend Tax |
| D. | None of these |
| Answer» D. None of these | |
| 36. |
The Insurance Act came in to effect in ….. |
| A. | 1956 |
| B. | 1998 |
| C. | 1938 |
| D. | 2000 |
| Answer» D. 2000 | |
| 37. |
Security premium account can be utilized for …………. |
| A. | Issuing fully paid bonus shares |
| B. | Write off preliminary expenses |
| C. | Write off underwriting commission |
| D. | All of these |
| Answer» E. | |
| 38. |
A scheduled bank is required to maintain with RBI --------- at a prescribedpercentage of their total time and demand deposit. |
| A. | SLR |
| B. | CRR |
| C. | statutory reserve |
| D. | branch adjustment |
| Answer» C. statutory reserve | |
| 39. |
In external liquidations, there is one liquidation and one ……………… |
| A. | Formation |
| B. | Merger |
| C. | Demerger |
| D. | Purchase consideration |
| Answer» B. Merger | |
| 40. |
The buy back of shares is also known as …….. |
| A. | corporate redemption |
| B. | corporate equity repurchase |
| C. | corporate equity valuation |
| D. | none |
| Answer» C. corporate equity valuation | |
| 41. |
In …..., a new company is formed to take over the business of an existing company whichgoes into liquidation. |
| A. | Amalgamation |
| B. | External reconstruction |
| C. | Absorption |
| D. | Internal reconstruction |
| Answer» C. Absorption | |
| 42. |
A newly established company cannot issue shares at …… |
| A. | Par |
| B. | Premium |
| C. | Discount |
| D. | All of these |
| Answer» D. All of these | |
| 43. |
Under Ind AS 103, assets and liabilities are recorded at |
| A. | fair value |
| B. | book value |
| C. | intrinsic value |
| D. | none |
| Answer» B. book value | |
| 44. |
Schedule 16 relates to…. |
| A. | interest earned |
| B. | interest expended |
| C. | operating expenses |
| D. | none of these |
| Answer» D. none of these | |
| 45. |
Calls in advance is shown on the ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of the balance sheet |
| A. | Asset side |
| B. | Credit side |
| C. | Liability side |
| D. | Debit side |
| Answer» D. Debit side | |
| 46. |
Every bank is required to maintain ----- with RBI in the form of cash, gold andsecurities an amount not less than 25% of their demand and time liabilities. |
| A. | CRR |
| B. | SLR |
| C. | statutory reserve |
| D. | branch adjustment |
| Answer» C. statutory reserve | |
| 47. |
Bonus in reduction of premium appears in the revenue a/c as ---------- |
| A. | an income |
| B. | an expense |
| C. | no where |
| D. | profit |
| Answer» C. no where | |
| 48. |
………..debentures are transferable by mere delivery |
| A. | Naked |
| B. | Mortgage |
| C. | Registered |
| D. | Bearer |
| Answer» E. | |
| 49. |
The short term advances made by a bank to the stock brokers and bill brokers arecalled --------- |
| A. | Money at call |
| B. | short loan |
| C. | short provision |
| D. | inter-office adjustment |
| Answer» B. short loan | |
| 50. |
The maximum extent to which a company can raise share‐capital is called ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ capital. |
| A. | Subscribed |
| B. | Authorized |
| C. | Called |
| D. | Reserve capital. |
| Answer» C. Called | |