MCQOPTIONS
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MCQOPTIONS
This section includes 2081 Mcqs, each offering curated multiple-choice questions to sharpen your Finance & Accounting knowledge and support exam preparation. Choose a topic below to get started.
| 751. |
When own debentures are cancelled any profit on cancellation is transferred to … |
| A. | general reserve |
| B. | capital reserve |
| C. | P/L Account |
| D. | none of these |
| Answer» C. P/L Account | |
| 752. |
Premium on issue of debentures is a…. |
| A. | capital loss |
| B. | capital profit |
| C. | revenue profit |
| D. | revenue loss |
| Answer» C. revenue profit | |
| 753. |
-------- debentures are secured by a charge on the assets of the company. |
| A. | naked |
| B. | simple |
| C. | unsecured |
| D. | mortgage |
| Answer» E. | |
| 754. |
-------- is a document prepared by the company before the issue of prospectus to thepublic for subscription of debentures. |
| A. | debenture |
| B. | trust deed |
| C. | abridged prospectus |
| D. | call letter |
| Answer» C. abridged prospectus | |
| 755. |
Discount on issue of debentures is a --------- |
| A. | capital loss |
| B. | capital profit |
| C. | revenue loss |
| D. | revenue profit |
| Answer» B. capital profit | |
| 756. |
Which of the following is a method of redemption of debentures? |
| A. | draw of lots |
| B. | conversion |
| C. | open market purchase |
| D. | all of these |
| Answer» E. | |
| 757. |
Companies may issue debentures as security against loans taken from banks/financialinstitutions. |
| A. | principal |
| B. | primary |
| C. | collateral |
| D. | chargeable |
| Answer» D. chargeable | |
| 758. |
Interest on debenture is ----- |
| A. | An appropriation of profit |
| B. | a charge against profit |
| C. | an adjustment of profit |
| D. | none of these |
| Answer» C. an adjustment of profit | |
| 759. |
After the redemption of debentures, any credit balance in the Sinking Fund a/c istransferred to -------- a/c. |
| A. | general reserve |
| B. | capital reserve |
| C. | P&L |
| D. | none of these |
| Answer» B. capital reserve | |
| 760. |
In the case of joint stock companies , the assets and liabilities in B/S are arranged in theorder of … |
| A. | serial number |
| B. | performance |
| C. | availability |
| D. | none of these |
| Answer» C. availability | |
| 761. |
Dividend declared in between two annual general meeting is called…. |
| A. | unclaimed dividend |
| B. | interim dividend |
| C. | proposed dividend |
| D. | scrip dividend |
| Answer» C. proposed dividend | |
| 762. |
Dividend is paid on …..capital |
| A. | called |
| B. | paid up |
| C. | issued |
| D. | none of these |
| Answer» C. issued | |
| 763. |
The amount set aside to meet the loss of bad debt is… |
| A. | Liability |
| B. | reserve |
| C. | provision |
| D. | contingent liability |
| Answer» D. contingent liability | |
| 764. |
Unclaimed dividend is shown in… |
| A. | P/L Account |
| B. | P/L Appropriation account |
| C. | Balance sheet |
| D. | None of these |
| Answer» D. None of these | |
| 765. |
Which of the following represents source of fund in the balance sheet of a company? |
| A. | secured loan |
| B. | share capital |
| C. | reserves & surplus |
| D. | all of these |
| Answer» E. | |
| 766. |
When the proposed dividend exceeds 20% of paid up capital, percentage of profittransferred to general reserve is….. |
| A. | 2.5% |
| B. | 5% |
| C. | 7.5% |
| D. | 10% |
| Answer» E. | |
| 767. |
Advance payment of tax is a…. |
| A. | Prepaid expense |
| B. | general reserve |
| C. | interim dividend |
| D. | provision for taxation |
| Answer» B. general reserve | |
| 768. |
Which of the following does not represent application of fund of a company? |
| A. | fixed asset |
| B. | good will |
| C. | debentures |
| D. | debtors |
| Answer» D. debtors | |
| 769. |
Which of the following reserves cannot be distributed as dividend to share holders? |
| A. | securities premium |
| B. | profit on forfeiture of shares |
| C. | profit on sale of fixed assets |
| D. | all of these |
| Answer» E. | |
| 770. |
Which of the following reserve does not appear in the balance sheet of a company? |
| A. | secret reserve |
| B. | general reserve |
| C. | capital reserve |
| D. | specific reserve |
| Answer» B. general reserve | |
| 771. |
Fictitious assets are shown on the asset side of the balance sheet of a company under theheading ----------- |
| A. | Fixed asset |
| B. | current asset |
| C. | foot note |
| D. | none |
| Answer» B. current asset | |
| 772. |
Unclaimed dividend is shown on the liability side of the balance sheet of a company as --------- |
| A. | Share capital |
| B. | current liabilities |
| C. | Reserves & Surplus |
| D. | non- current liability |
| Answer» C. Reserves & Surplus | |
| 773. |
Dividend may be declared out of ---------------- |
| A. | Current profit |
| B. | past reserves |
| C. | money provided by government |
| D. | all of these |
| Answer» E. | |
| 774. |
Which of the following is not a long term borrowing of a company? |
| A. | Debentures |
| B. | term loans |
| C. | loans repayable on demand from banks |
| D. | long- term finance lease obligations |
| Answer» D. long- term finance lease obligations | |
| 775. |
Financial statement in relation to a company includes: |
| A. | Balance sheet |
| B. | Statement of P&L |
| C. | Cash flow statement |
| D. | all of these |
| Answer» E. | |
| 776. |
Calls in advance is shown in the balance sheet as ------------- |
| A. | Current liabilities |
| B. | added to called-up capital |
| C. | current assets |
| D. | deduction from called -up capital |
| Answer» B. added to called-up capital | |
| 777. |
The difference between gross dividend receivable and dividend received is debited to --------- |
| A. | Interim dividend |
| B. | tax deducted at source |
| C. | net dividend |
| D. | difference adjustment |
| Answer» C. net dividend | |
| 778. |
Pooling of interest method is applicable for amalgamation in the nature of…. |
| A. | merger |
| B. | consolidation |
| C. | reconstruction |
| D. | realization |
| Answer» B. consolidation | |
| 779. |
For amalgamation in the nature of merger, the shareholders holding at least or more of the equity shares of the transferor company becomes the equity shareholders of the transferee company. |
| A. | 90% |
| B. | 80% |
| C. | 100% |
| D. | none of these |
| Answer» B. 80% | |
| 780. |
Realization loss is transferred to ….. |
| A. | Preference shareholders a/c |
| B. | equity shareholders a/c |
| C. | creditors a/c |
| D. | none of these |
| Answer» C. creditors a/c | |
| 781. |
When an existing company takes over the business of one or more existing companies, itis called…. |
| A. | amalgamation |
| B. | absorption |
| C. | internal reconstruction |
| D. | none of these |
| Answer» C. internal reconstruction | |
| 782. |
Accounting for amalgamation is given in…. |
| A. | AS 14 |
| B. | AS 16 |
| C. | AS 20 |
| D. | None of these |
| Answer» B. AS 16 | |
| 783. |
Which of the following fictitious assets is not taken over by the transferee company? |
| A. | Preliminary expenses |
| B. | underwriting commission |
| C. | discount on issue of shares |
| D. | all of these |
| Answer» E. | |
| 784. |
Liquidation expenses paid by the transferee company is debited to … |
| A. | General reserve account |
| B. | P/L Account |
| C. | goodwill account |
| D. | none of these |
| Answer» D. none of these | |
| 785. |
Which of the following is considered as an asset while calculating purchase consideration? |
| A. | goodwill |
| B. | patent |
| C. | trade mark |
| D. | all of these |
| Answer» E. | |
| 786. |
The accumulated losses and fictitious assets of the transferor company are transferred to-------- a/c. |
| A. | equity share holders |
| B. | transferee company |
| C. | equity capital |
| D. | realization |
| Answer» B. transferee company | |
| 787. |
Which of the following a/c is debited when statutory reserve of the transferor companyis taken over by the transferee company? |
| A. | goodwill a/c |
| B. | amalgamation adjustment a/c |
| C. | capital reserve a/c |
| D. | statutory reserve |
| Answer» C. capital reserve a/c | |
| 788. |
Under purchase method of amalgamation, --------- of the transferor company continues to appear in the balance sheet of the transferee company. |
| A. | capital reserve |
| B. | general reserve |
| C. | statutory reserve |
| D. | specific reserve |
| Answer» D. specific reserve | |
| 789. |
While preparing the transferee company’s financial statement under amalgamation in the nature of merger, the assets and liabilities taken over from the transferor company should be incorporated at ---------- |
| A. | cost |
| B. | book value |
| C. | revised value |
| D. | none |
| Answer» C. revised value | |
| 790. |
While preparing the transferee company’s financial statement under amalgamation in the nature of purchase, the assets and liabilities taken over from the transferor companyshould be incorporated at -------- |
| A. | Cost |
| B. | book value |
| C. | revised value |
| D. | none |
| Answer» D. none | |
| 791. |
Which of the following is considered while calculating purchase consideration under Net asset method? |
| A. | Assets taken over |
| B. | liabilities taken over |
| C. | good will taken over |
| D. | all of the above |
| Answer» E. | |
| 792. |
Which of the following should not be considered as a part of purchase consideration? |
| A. | Payment to equity share holders |
| B. | payment to preference share holders |
| C. | payment to debenture holders |
| D. | cash payment to share holders |
| Answer» D. cash payment to share holders | |
| 793. |
Which of the following is a statutory reserve? |
| A. | Development Allowance Reserve |
| B. | Capital Reserve |
| C. | Workmen’s Compensation Fund |
| D. | CRR |
| Answer» B. Capital Reserve | |
| 794. |
Under net payment method, purchase consideration includes all payments made to theshare holders in the form of --------- |
| A. | Equity share |
| B. | preference share |
| C. | cash |
| D. | all of these |
| Answer» E. | |
| 795. |
Any excess amount paid to preference share holders is debited to ------ --- account |
| A. | realisation |
| B. | preference share holders |
| C. | P&L |
| D. | preference share capital |
| Answer» B. preference share holders | |
| 796. |
While preparing the books of the transferee company in purchase method, the difference between purchase consideration and share capital of the transferor company should be adjusted in ------------- |
| A. | Share capital |
| B. | reserves |
| C. | assets |
| D. | liabilities |
| Answer» C. assets | |
| 797. |
The excess of purchase consideration over net assets of the transferor company acquired by the transferee company should be recognized as -------- in purchase method |
| A. | Capital reserve |
| B. | general reserve |
| C. | good will |
| D. | P&L |
| Answer» D. P&L | |
| 798. |
In purchase method, the excess of net asset of the transferor company acquired by thetransferee company over the purchase consideration should be recognized as ------------ |
| A. | P&L |
| B. | good will |
| C. | general reserve |
| D. | capital reserve |
| Answer» E. | |
| 799. |
Alteration of shares of smaller amounts into shares of larger amount is called…..of sharecapital |
| A. | surrender |
| B. | subdivision |
| C. | consolidation |
| D. | none of these |
| Answer» D. none of these | |
| 800. |
The amount of surrendered shares is credited to … |
| A. | CRR |
| B. | sinking fund |
| C. | capital reduction account |
| D. | reserve |
| Answer» D. reserve | |