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. |
In the case of railway companies rent on leased lines is shown on |
| A. | debit side of revenue A/c |
| B. | credit side of revenue A/c |
| C. | debit side of net revenue A/c |
| D. | credit side of net revenue A/c |
| Answer» D. credit side of net revenue A/c | |
| 2. |
The difference between Gross dividend receivable and dividend received is debited to ‐‐‐‐‐‐‐‐‐‐‐‐‐‐ |
| A. | Tax deducted at source |
| B. | Dividend deducted at source |
| C. | Interest deducted at source |
| D. | None of these. |
| Answer» B. Dividend deducted at source | |
| 3. |
A fair and equitable distribution of loss is the essence of a successful scheme of: |
| A. | External reconstruction. |
| B. | Merger |
| C. | Amalgamation |
| D. | Internal reconstruction |
| Answer» E. | |
| 4. |
The purchase of an existing company which goes into liquidation by another existingcompany is known as ………….. |
| A. | Amalgamation |
| B. | External reconstruction |
| C. | Absorption |
| D. | Internal reconstruction |
| Answer» D. Internal reconstruction | |
| 5. |
Preference shares can be redeemed by…………. |
| A. | Fresh issue of shares |
| B. | Profit |
| C. | Partly out of fresh issue and partly out of profit. |
| D. | All of these |
| Answer» E. | |
| 6. |
Accounting standards and Standards on Auditing establish standards which have to be complied with to ensure that financial statements are prepared in accordance with ______. |
| A. | Generally acceptable Audit Procedure |
| B. | Accounting Principles |
| C. | Ind AS |
| D. | Accounting Standards |
| Answer» B. Accounting Principles | |
| 7. |
If amalgamation is in the ..............., the General Reserve or Profit and Loss A/cbalance will not be shown in the balance sheet. |
| A. | Form of Merger |
| B. | Form of purchase |
| C. | Net assets method |
| D. | Consideration method |
| Answer» C. Net assets method | |
| 8. |
When 4,000 equity shares of Rs.10 each is bought back at Rs.20 per share,the amount to be transferred to Capital Redemption Reserve is |
| A. | 80,000 |
| B. | 40,000 |
| C. | 4,000 |
| D. | none |
| Answer» C. 4,000 | |
| 9. |
The minimum application money to be paid by an applicant must not be less than …….as perCompanies Act. |
| A. | 10% |
| B. | 5% |
| C. | 15% |
| D. | 20% |
| Answer» C. 15% | |
| 10. |
In the calculation of ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐, past profits will have to be adjusted, in order to dertemine thefuture expected profits. |
| A. | Shares |
| B. | Market value |
| C. | Fair value |
| D. | Goodwill |
| Answer» B. Market value | |
| 11. |
Premium received on issue of shares cannot be utilised for ---------. |
| A. | for the issue of bonus shares . |
| B. | for writing of preliminary expenses |
| C. | for providing premium payable on redemption |
| D. | for distribution of dividend. |
| Answer» E. | |
| 12. |
Interest on non-performing assets should be recognized on -------- basis. |
| A. | actually received |
| B. | accrual |
| C. | standard |
| D. | none |
| Answer» B. accrual | |
| 13. |
Where large number of accounting data is involved spreadsheet software may notwork………………………………. |
| A. | Effective |
| B. | Speedy |
| C. | Accurate |
| D. | Perfect |
| Answer» B. Speedy | |
| 14. |
Which of the following represents term deposit? |
| A. | Savings deposit |
| B. | current deposit |
| C. | fixed deposit |
| D. | none |
| Answer» D. none | |
| 15. |
………is the dividend declared in the annual general meeting of shareholders. |
| A. | Proposed Dividend |
| B. | Final Dividend |
| C. | Interim Dividend |
| D. | None of these |
| Answer» C. Interim Dividend | |
| 16. |
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ in India is largely governed by the Banking Regulation act 1949. |
| A. | Insurance business |
| B. | Banking business |
| C. | Joint Stock company |
| D. | Cooperative society. |
| Answer» C. Joint Stock company | |
| 17. |
Discount or loss on issue of debenture is a …………. |
| A. | Capital Profit |
| B. | Revenue Receipt |
| C. | Capital Loss |
| D. | Revenue Expense |
| Answer» D. Revenue Expense | |
| 18. |
Salaries due to director, manager, secretary etc. are preferential. |
| A. | True |
| B. | False |
| C. | none |
| D. | none |
| Answer» C. none | |
| 19. |
On an equity share of Rs. 20, the company has called up Rs. 16 but Rs.14 has been receivedby the company, the share capital account should be credited by …… |
| A. | Rs. 20 |
| B. | Rs. 16 |
| C. | Rs. 14 |
| D. | Rs. 6 |
| Answer» C. Rs. 14 | |
| 20. |
Reduction of share capital is possible by the company, if it is authorized by its: |
| A. | Articles. |
| B. | Special resolution. |
| C. | Confirmation of the court. |
| D. | All of the Above. |
| Answer» E. | |
| 21. |
Goodwill is paid for obtaining __________. |
| A. | Future benefit |
| B. | Present benefit |
| C. | Past benefit |
| D. | None of the above |
| Answer» B. Present benefit | |
| 22. |
Rebate on bills discounted is a ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of the Banking company. |
| A. | Liability |
| B. | Assets |
| C. | Expense |
| D. | Income |
| Answer» B. Assets | |
| 23. |
A ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ company required to prepare its balance sheet according to form A in the IIIschedule to the banking Regulation Act. |
| A. | Insurance company |
| B. | Joint stock company |
| C. | Banking company |
| D. | None of these. |
| Answer» D. None of these. | |
| 24. |
The dividend recommended by the Board of Directors is called……… |
| A. | Proposed Dividend |
| B. | Final Dividend |
| C. | Interim Dividend |
| D. | None of these |
| Answer» B. Final Dividend | |
| 25. |
Companies have a statutory obligation to prepare final accounts required by section 210 of thecompanies Act ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ |
| A. | 1936 |
| B. | 1932 |
| C. | 1938 |
| D. | 1956 |
| Answer» E. | |
| 26. |
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ Shares carry a fixed rate of dividend. |
| A. | Preference |
| B. | Equity |
| C. | Deferred |
| D. | Sweat equity. |
| Answer» B. Equity | |
| 27. |
Unclaimed dividend is shown on the ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of the balance sheet |
| A. | Assets side |
| B. | Credit side |
| C. | Liability side |
| D. | Debit side |
| Answer» D. Debit side | |
| 28. |
In case of .............., one existing company takes over the business of anothercompany and no new company is formed |
| A. | Merger |
| B. | Amalgamation |
| C. | Absorption |
| D. | Demerger |
| Answer» D. Demerger | |
| 29. |
When the Vendor (seller) company agrees to bear liquidation expenses, it will debit |
| A. | Realisation Account |
| B. | Bank Account |
| C. | Goodwill Account |
| D. | none |
| Answer» B. Bank Account | |
| 30. |
Assets are NPAs for a period not exceeding 12 months are called …………. |
| A. | Standard Assets |
| B. | Substandard Assets |
| C. | Doubtful Assets |
| D. | Loss Assets |
| Answer» C. Doubtful Assets | |
| 31. |
A Banking company should transfer ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of its profits to a statutory reserve. |
| A. | 20% |
| B. | 25% |
| C. | 15% |
| D. | 10% |
| Answer» C. 15% | |
| 32. |
If the intrinsic values of shares exchanged are not equal, the difference is paid in........... |
| A. | Cash |
| B. | Debenture |
| C. | Pref. share |
| D. | Assets |
| Answer» B. Debenture | |
| 33. |
A past member is not liable to contribute: |
| A. | In respect of any liability contracted after he ceased to be member of the company. |
| B. | One year passed since he ceased to be a member. |
| C. | In case of company limited by shares, no liability arises if shares are fully paid up. |
| D. | All of the above |
| Answer» E. | |
| 34. |
Preference shares cannot be redeemed unless they are ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ |
| A. | Partly paid |
| B. | Fully paid |
| C. | Twice paid up |
| D. | One by two paid up. |
| Answer» C. Twice paid up | |
| 35. |
The dividend paid between two annual general meeting is knowna………………………. |
| A. | Final dividend |
| B. | Ex Dividend |
| C. | Interim Dividend |
| D. | Dividend |
| Answer» D. Dividend | |
| 36. |
Under double account system, fixed assets are shown at….. |
| A. | original cost |
| B. | historical cost |
| C. | future cost |
| D. | none |
| Answer» B. historical cost | |
| 37. |
Surplus of electricity company is limited to |
| A. | 20% of capital base |
| B. | 20% of total assets |
| C. | 20% of clear profit |
| D. | 20% of reasonable return |
| Answer» E. | |
| 38. |
Unquoted shares means………………………. |
| A. | Listed Shares |
| B. | Quoted Shares |
| C. | Unquoted Shares |
| D. | Unlisted Shares |
| Answer» E. | |
| 39. |
A Banking company required to prepare its balance sheet according to ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ in theschedule III to the banking |
| A. | Form A |
| B. | Form B |
| C. | Form C |
| D. | Form D |
| Answer» B. Form B | |
| 40. |
………is the dividend declared in the annual general meeting ofshareholders. |
| A. | Proposed Dividend |
| B. | Final Dividend |
| C. | Interim Dividend |
| D. | None of these |
| Answer» C. Interim Dividend | |
| 41. |
When company converts its equity shares into capital stock, the account to be credited is … |
| A. | Equity share capital account |
| B. | Equity capital stock account |
| C. | No entry |
| D. | None of these |
| Answer» C. No entry | |
| 42. |
. ……..is called a factory of credit. |
| A. | Company |
| B. | Firm |
| C. | Bank |
| D. | None of these |
| Answer» D. None of these | |
| 43. |
The cost of replacing an asset in its original condition is known as…… |
| A. | replacement cost |
| B. | revaluation cost |
| C. | revenue cost |
| D. | reconstruction cost |
| Answer» B. revaluation cost | |
| 44. |
The rate of interest on Calls in arrears as per Companies Act is ………… |
| A. | 10% |
| B. | 6% |
| C. | 5% |
| D. | 7% |
| Answer» D. 7% | |
| 45. |
Dividend declared between two annual general meeting is known as ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ |
| A. | Final dividend |
| B. | Unclaimed dividend |
| C. | Interim dividend |
| D. | None of these. |
| Answer» D. None of these. | |
| 46. |
The time interval between the date of acquisition if shares in subsidiary companyand date of balance sheet of holding company is known as : |
| A. | Pre-acquisition period |
| B. | Post -acquisition period. |
| C. | Pre- commencement peri |
| Answer» C. Pre- commencement peri | |
| 47. |
When one of the existing companies take over business of another company orcompanies, it is known as ........... |
| A. | Amalgamation |
| B. | Absorption |
| C. | Internal reconstruction |
| D. | External reconstruction |
| Answer» C. Internal reconstruction | |
| 48. |
All revenue, taxes due to government within ………..before the date ofcommencement of winding up is preferential. |
| A. | 12 months |
| B. | 24 months |
| C. | 30 months |
| D. | 180days |
| Answer» D. 180days | |
| 49. |
The commission given by insurance companies to others for receiving business under reinsurance is called ………………… |
| A. | Commission on reinsurance accepted |
| B. | Agents’ commission |
| C. | Commission on reinsurance ceded |
| D. | None of these |
| Answer» B. Agents’ commission | |
| 50. |
The shares firstly offered to the existing shareholders are called as …………. |
| A. | Right shares |
| B. | Bonus shares |
| C. | Ordinary shares |
| D. | None of these |
| Answer» B. Bonus shares | |