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 internal reconstruction, the existing company will be ………. |
| A. | Amalgamated |
| B. | Absorbed |
| C. | Liquidated |
| D. | None of these |
| Answer» E. | |
| 2. |
If a share of Rs.10 is issued at a premium of 20%, the issue price is ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ |
| A. | Rs.8 |
| B. | Rs.12 |
| C. | Rs.2 |
| D. | None of these. |
| Answer» C. Rs.2 | |
| 3. |
Debenture holders are the ……….of a company |
| A. | Debtors |
| B. | Owners |
| C. | Creditors |
| D. | Borrowers |
| Answer» D. Borrowers | |
| 4. |
A new company cannot issue shares at‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐. |
| A. | Premium |
| B. | Discount |
| C. | Par |
| D. | None of these. |
| Answer» C. Par | |
| 5. |
Authorised capital is called as…………… |
| A. | Reserve capital |
| B. | Nominal Capital |
| C. | Capital Reserve |
| D. | Subscribed capital |
| Answer» C. Capital Reserve | |
| 6. |
Capital redemption reserve and security premium can be utilised for issuing………bonus shares |
| A. | fully paid |
| B. | partly paid |
| C. | fully paid or partly paid |
| D. | none |
| Answer» B. partly paid | |
| 7. |
Discount on reissue of forfeited shares should not exceed …………. |
| A. | Amount forfeited |
| B. | Face value |
| C. | Issued price |
| D. | Market price |
| Answer» B. Face value | |
| 8. |
Companies have a statutory obligation to prepare required by section 210 of the companies Act |
| A. | Trading account |
| B. | Profit and loss account |
| C. | Balance sheet |
| D. | Final accounts |
| Answer» E. | |
| 9. |
Right issue means issue of shares to ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ |
| A. | Existing debenture holder |
| B. | Existing share holders |
| C. | Promoters |
| D. | Institutional investors |
| Answer» C. Promoters | |
| 10. |
In the case of marine insurance reserve for unexpired risk is ….. |
| A. | 50% |
| B. | 100% |
| C. | 40% |
| D. | none of these |
| Answer» C. 40% | |
| 11. |
Bills discounted is an ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of the banking company |
| A. | Asset |
| B. | Liability |
| C. | Income |
| D. | Expense |
| Answer» B. Liability | |
| 12. |
In the case of ………………………. only one of the combining companies survivesand the other losses its separate identity. |
| A. | Acquisition |
| B. | Merger |
| C. | Amalgamation |
| D. | Formation |
| Answer» B. Merger | |
| 13. |
Bonus shares can be issued only on getting approval of |
| A. | articles of the company |
| B. | board of directors |
| C. | shareholders |
| D. | all |
| Answer» E. | |
| 14. |
The Time interval between the date of acquisition of shares in subsidiary company and date of Balance Sheet of Holding Company is known as : |
| A. | Pre-acquisition period |
| B. | Post-acquisition period |
| C. | Pre-commencement period |
| D. | Pre-incorporation period |
| Answer» C. Pre-commencement period | |
| 15. |
Debenture is document which creates a…… |
| A. | debt |
| B. | credit |
| C. | both A and B |
| D. | none |
| Answer» B. credit | |
| 16. |
The dividend declared between two annual general meeting is called ………. |
| A. | Proposed Dividend |
| B. | Final Dividend |
| C. | Interim Dividend |
| D. | None of these |
| Answer» D. None of these | |
| 17. |
The rate of discount on shares cannot exceed ………. |
| A. | 10% |
| B. | 5% |
| C. | 6% |
| D. | 7% |
| Answer» B. 5% | |
| 18. |
The Amalgamation Adjustment Account appears in the books, it is shown under theheading of ......... in the balance sheet. |
| A. | Reserve and Surplus |
| B. | Fixed Assets |
| C. | Investments |
| D. | Miscellaneous expenditure |
| Answer» E. | |
| 19. |
Contingency funds have been grouped in the balance sheet under the head ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ |
| A. | Other liabilities |
| B. | Provisions |
| C. | Current liabilities |
| D. | Current liabilities and provisions. |
| Answer» E. | |
| 20. |
Which of the following is not a statutory reserve? |
| A. | General reserve |
| B. | Development rebate reserve |
| C. | Investment allowance reserve |
| D. | Workmen compensation fund |
| Answer» B. Development rebate reserve | |
| 21. |
The idea of computers was first conceived by Charles P. Babbage in 1833. |
| A. | True |
| B. | False |
| C. | none |
| D. | none |
| Answer» B. False | |
| 22. |
Advance tax paid is shown in the balance sheet under the head………. |
| A. | Current Liabilities |
| B. | Loans and Advances |
| C. | Fixed Assets |
| D. | None of these |
| Answer» C. Fixed Assets | |
| 23. |
A liability which can be measured only by using a substantial degree of estimation iscalled………………………. |
| A. | Contingent liabilities |
| B. | Contingent Assets |
| C. | Fixed Assets |
| D. | Non Current Liabilities |
| Answer» B. Contingent Assets | |
| 24. |
The consideration in insurance for covering the risk is called …………. |
| A. | Claim |
| B. | Premium |
| C. | Annuity |
| D. | None of these |
| Answer» C. Annuity | |
| 25. |
For the same purchase price profit on cancellation of debentures is more when purchase on ‐‐‐‐‐‐‐‐‐‐‐‐‐ basis. |
| A. | Ex‐Interest |
| B. | Cum‐Interest |
| C. | Own Debentures basis |
| D. | None of these. |
| Answer» C. Own Debentures basis | |
| 26. |
In case of public limited company, after getting the-----------the company can startthe business |
| A. | Memorandum of Association |
| B. | Table A |
| C. | Certificate of commencement of business |
| D. | Articles of Association |
| Answer» D. Articles of Association | |
| 27. |
International Public Sector Accounting Standards were issued by |
| A. | International Accounting Standards Board. |
| B. | International Auditing Practices Committee. |
| C. | International Federation of Accountants. |
| D. | None of the above |
| Answer» D. None of the above | |
| 28. |
Salaries due to clerk is preferential for a period not exceeding: |
| A. | Two months |
| B. | Three months |
| C. | Four months |
| D. | Nine months |
| Answer» D. Nine months | |
| 29. |
Creditors voluntary winding up applies to ………………. Companies |
| A. | Solvent |
| B. | Insolvent |
| C. | Textile |
| D. | Automoblie |
| Answer» C. Textile | |
| 30. |
…………….is the company into which a company is amalgamated. |
| A. | Transferor company |
| B. | Transferee Company |
| C. | Subsidiary company |
| D. | Holding company |
| Answer» C. Subsidiary company | |
| 31. |
When the purchasing company does not take over a particular liability and thevendor company pays that liability, it will debit it to |
| A. | Realisation Account |
| B. | Bank Account |
| C. | Liability Account |
| D. | none |
| Answer» B. Bank Account | |
| 32. |
Dividend paid or declared are subject to corporate dividend Tax @ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ as per recentfinance Act. |
| A. | 12.5% |
| B. | 17% |
| C. | 15% |
| D. | 10% |
| Answer» C. 15% | |
| 33. |
A charge created not on specific assets but generally on all assets is known as…………. |
| A. | Fixed charge |
| B. | Floating charge |
| C. | Mortgage |
| D. | None of these |
| Answer» C. Mortgage | |
| 34. |
The share of outsiders in the Net Assets in subsidiary company is known as under : |
| A. | Assets |
| B. | subsidiary company's liability |
| C. | Minority Interest |
| D. | outsiders liability |
| Answer» E. | |
| 35. |
Premium on redemption of debentures account is in the nature of ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ |
| A. | Personal account |
| B. | Real account |
| C. | Nominal account |
| D. | None of these. |
| Answer» D. None of these. | |
| 36. |
Value of a partly paid equity share is equal to ___________. |
| A. | Value of fully paid share - calls unpaid per share |
| B. | Calls in arrears per share |
| C. | Paid-up value per share |
| D. | None of the above |
| Answer» B. Calls in arrears per share | |
| 37. |
When debentures are redeemed from out of profits an equal amount is transferred to ‐‐‐‐‐‐‐‐‐‐‐‐ account. |
| A. | Capital reserve |
| B. | Capital Redemption Reserve |
| C. | Debenture redemption reserve |
| D. | General Reserve. |
| Answer» D. General Reserve. | |
| 38. |
If rate of proposed dividend is less than 10% of paid up capital, the rate of profit transferredto Reserve shall be……….. |
| A. | 10% |
| B. | 2.5% |
| C. | 5% |
| D. | Nil |
| Answer» E. | |
| 39. |
Shares are to be valued on ___________. |
| A. | Mergers |
| B. | Sale of shares |
| C. | Gift tax |
| D. | All of the above |
| Answer» E. | |
| 40. |
Acceptance, endorsements and other obligations come under the head… |
| A. | Provisions and Contingencies |
| B. | Contingent liabilities |
| C. | Deposits |
| D. | Borrowings |
| Answer» C. Deposits | |
| 41. |
………is concerned with accounting for amalgamation. |
| A. | AS – 10 |
| B. | AS – 12 |
| C. | AS – 14 |
| D. | AS – 16 |
| Answer» D. AS – 16 | |
| 42. |
Balance of forfeited share is ……. |
| A. | Revenue Reserve |
| B. | Capital Reserve |
| C. | Secret Reserve |
| D. | Security Premium |
| Answer» C. Secret Reserve | |
| 43. |
The party whose risk is covered in insurance is known as ………. |
| A. | Insurer |
| B. | Insured |
| C. | Underwriter |
| D. | None of these |
| Answer» C. Underwriter | |
| 44. |
Revenue Account is also called …………. |
| A. | Shareholders’ Account |
| B. | Policyholders’ Account |
| C. | Creditors’ Account |
| D. | None of these |
| Answer» C. Creditors’ Account | |
| 45. |
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ capital of a company can be called up only in the event of winding up. |
| A. | Reserve |
| B. | Authorized |
| C. | Registered |
| D. | Nominal |
| Answer» B. Authorized | |
| 46. |
The discount on the issue of shares should not exceed ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ normally. |
| A. | 10% |
| B. | 20% |
| C. | 30% |
| D. | None of these. |
| Answer» B. 20% | |
| 47. |
On a consolidated balance sheet, if the shares of a company have been bought formore than the balance sheet value then the difference would appear as: |
| A. | Goodwill |
| B. | Capital reserve |
| C. | Loss on purchase |
| D. | Profit on purchase |
| Answer» B. Capital reserve | |
| 48. |
Banking business in India is largely governed by the ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ |
| A. | Partnership Act |
| B. | Companies Act |
| C. | Insurance Act |
| D. | Banking Regulation Act |
| Answer» E. | |
| 49. |
Ind AS 28 deal with…….. |
| A. | investments in association and joint ventures |
| B. | investment in parent company |
| C. | investment in subsidiary company |
| D. | investment in foreign company |
| Answer» B. investment in parent company | |
| 50. |
Fair value of a share in the simple average of intrinsic value and ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ value of a share |
| A. | Nominal value |
| B. | Face value |
| C. | Market value |
| D. | Yield value. |
| Answer» E. | |