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.
| 951. |
Own debenture account will appear on the …… side of B/S |
| A. | Liability |
| B. | asset |
| C. | both side |
| D. | none |
| Answer» C. both side | |
| 952. |
Liquidator’s statement of receipts and payment is know as: |
| A. | Cash flow statement |
| B. | Cash book |
| C. | Liquidator’s final statement of account |
| D. | Deficiency accounts. |
| Answer» D. Deficiency accounts. | |
| 953. |
The excess price received on the par value of shares should be credited to …………. |
| A. | Calls in advance A/c |
| B. | Reserve Capital A/c |
| C. | Security Premium A/c |
| D. | None of these |
| Answer» D. None of these | |
| 954. |
In ………., the company does not loss its identity |
| A. | Amalgamation |
| B. | External reconstruction |
| C. | Absorption |
| D. | Internal reconstruction |
| Answer» E. | |
| 955. |
A bank can open a branch only at the permission of the… |
| A. | SBI |
| B. | RBI |
| C. | Government. |
| D. | none of these |
| Answer» C. Government. | |
| 956. |
Underwriting commission is classified as ………….. |
| A. | Capital Loss |
| B. | Capita Expenditure |
| C. | Revenue expenditure |
| D. | Deferred revenue expenditure |
| Answer» E. | |
| 957. |
………is a form of agreement between two parties in which one partyagrees to make good for loss of another. |
| A. | Contract |
| B. | Insurance |
| C. | Banking |
| D. | Mutual fund |
| Answer» C. Banking | |
| 958. |
The profit and loss account under double account system is termed as….. |
| A. | revenue account |
| B. | income and expenditure account |
| C. | P&L account |
| Answer» B. income and expenditure account | |
| 959. |
The form of balance sheet is……………….. |
| A. | Vertical |
| B. | Horizontal |
| C. | Horizontal and vertical |
| D. | None of the above |
| Answer» D. None of the above | |
| 960. |
After all the debentures are redeemed; the balance in the sinking fund account is transferred to ‐‐‐‐‐‐‐‐‐‐‐‐‐. |
| A. | Capital reserve |
| B. | General reserve |
| C. | Profit and loss account |
| D. | Capital redemption reserve. |
| Answer» C. Profit and loss account | |
| 961. |
When two or more companies carrying on similar business decide to combine, anew company is formed, it is known as .................. |
| A. | Amalgamation |
| B. | Absorption |
| C. | Internal reconstruction |
| D. | External reconstruction |
| Answer» B. Absorption | |
| 962. |
Holding Co. share in revenue profits of subsidiary company is adjusted in : |
| A. | Cost of control |
| B. | Shown on Assets side of Balance sheet |
| C. | Profit and loss account |
| D. | None of above |
| Answer» D. None of above | |
| 963. |
When debentures are issued as a consideration of purchase of assets …………. Is debited. |
| A. | Debenture Account |
| B. | Cash Account |
| C. | Assets Account |
| D. | Creditor Account |
| Answer» D. Creditor Account | |
| 964. |
Intrinsic value of share is calculated by dividing the ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of the company by the number ofshares |
| A. | Market value of assets |
| B. | Net asset |
| C. | Original cost of asset |
| D. | None of these |
| Answer» C. Original cost of asset | |
| 965. |
Profit earned after acquisition of share is treated as |
| A. | Capital profit |
| B. | Revenue profit |
| C. | General Reserve |
| D. | Revaluation Loss |
| Answer» B. Revenue profit | |
| 966. |
As per the companies Act, the interest on calls in advance is ………….. |
| A. | 10% |
| B. | 6% |
| C. | 5% |
| D. | 7% |
| Answer» C. 5% | |
| 967. |
The original amount of preference share capital should be transferred to ............account in the time of amalgamation in the books of vendor co. |
| A. | Preference shareholders Account |
| B. | Capital Reserve Account |
| C. | Equity share capital Account |
| D. | Equity share capital Account |
| Answer» B. Capital Reserve Account | |
| 968. |
Company which is amalgamated into another company is called …………….. |
| A. | Transferor company |
| B. | Transferee Company |
| C. | Purchasing company |
| D. | Holding company |
| Answer» B. Transferee Company | |
| 969. |
…………..is that portion of capital which is called up only on winding up of the company. |
| A. | Authorised Capital |
| B. | Issued capital |
| C. | Subscribed capital |
| D. | Reserve capital |
| Answer» E. | |
| 970. |
……….is not transferred to realisation account |
| A. | Goodwill |
| B. | Fictitious asset |
| C. | Trademark |
| D. | All of these |
| Answer» C. Trademark | |
| 971. |
When own debentures are cancelled, any profit on cancellation is transferredto |
| A. | general reserve |
| B. | capital reserve |
| C. | p&laccount |
| D. | none |
| Answer» C. p&laccount | |
| 972. |
Dividend in the form of shares is called ……….. |
| A. | Interim Dividend |
| B. | Scrip Dividend |
| C. | Final Dividend |
| D. | None of these |
| Answer» C. Final Dividend | |
| 973. |
Valuation balance sheet is prepared by ……………business. |
| A. | Fire Insurance |
| B. | Marine Insurance |
| C. | Life Insurance |
| D. | All of these |
| Answer» D. All of these | |
| 974. |
Requirements given in part I of ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ apply to Balance sheet |
| A. | Schedule I |
| B. | Schedule VI |
| C. | Schedule II |
| D. | Schedule V |
| Answer» C. Schedule II | |
| 975. |
Capital redemption reserve is created…. |
| A. | out of security premium |
| B. | to meet legal requirements |
| C. | Voluntarily |
| D. | none |
| Answer» C. Voluntarily | |
| 976. |
The original amount of preference share capital should be transferred to ............ account in the time of amalgamation in the books of vendor co. |
| A. | Equity shareholders |
| B. | Preference share holders |
| C. | Debenture holders |
| D. | vendors |
| Answer» C. Debenture holders | |
| 977. |
When own debentures are cancelled, any profit on cancellation is transferred to ‐‐‐‐‐‐‐‐‐‐‐‐‐‐ |
| A. | Profit and Loss Account |
| B. | General reserve |
| C. | Capital Reserve |
| D. | Sinking fund |
| Answer» D. Sinking fund | |
| 978. |
Banking business in India is largely governed by the Banking Regulation Act‐‐‐‐‐‐‐‐‐ |
| A. | 1932 |
| B. | 1956 |
| C. | 1949 |
| D. | 1938 |
| Answer» D. 1938 | |
| 979. |
Provision for Income tax is shown in a bank’s Balance Sheet as ------ |
| A. | Contingent liability |
| B. | Contingent asset |
| C. | Borrowings |
| D. | other liabilities and provisions |
| Answer» E. | |
| 980. |
Rebate on bills discounted is shown on the liability side of the ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ |
| A. | Profit and loss account |
| B. | Income statement |
| C. | Balance sheet |
| D. | None of these. |
| Answer» D. None of these. | |
| 981. |
Profit earned before acquisition of share is treated as: |
| A. | Revenue Profit |
| B. | Capital Profit |
| C. | Goodwill |
| D. | Revaluation Profit |
| Answer» C. Goodwill | |
| 982. |
The amount given to the policyholder due to his inability of paying further premium is called………….. |
| A. | Annuity |
| B. | Bonus |
| C. | Surrender value |
| D. | Claim |
| Answer» D. Claim | |
| 983. |
Internal reconstruction can be ……… |
| A. | Alteration of share capital |
| B. | Reduction of share capital |
| C. | Re‐organization of capital |
| D. | All of these |
| Answer» E. | |
| 984. |
In subdivision of shares, …… capital does not change |
| A. | Paid up |
| B. | Issued |
| C. | unissued |
| D. | none |
| Answer» B. Issued | |
| 985. |
The global key professional accounting body is |
| A. | The International Accounting Standards Board |
| B. | The Institute of Chartered Accountants of India |
| C. | The Financial accounting standard boa |
| Answer» B. The Institute of Chartered Accountants of India | |
| 986. |
In………., an existing company’s financial structure is reorganized without liquidating theexisting company and forming a new company. |
| A. | Amalgamation |
| B. | External reconstruction |
| C. | Absorption |
| D. | Internal reconstruction |
| Answer» E. | |
| 987. |
Ind AS ……. Deals with share based payments |
| A. | 102 |
| B. | 110 |
| C. | 101 |
| D. | 105 |
| Answer» B. 110 | |
| 988. |
The shares of a company can be issued at ………….. |
| A. | Par |
| B. | Premium |
| C. | Discount |
| D. | All of these |
| Answer» E. | |
| 989. |
The share capital, to the extent already held by the purchasing company, is closedby the vendor company by crediting it to: |
| A. | Share capital account |
| B. | Purchasing company's account |
| C. | Realisation account. |
| D. | none |
| Answer» D. none | |
| 990. |
Profit available for dividend distribution is called …………. |
| A. | Capital profit |
| B. | Divisible profit |
| C. | Capital Reserve |
| D. | None of these |
| Answer» C. Capital Reserve | |
| 991. |
When shares originally issued at discount are forfeited, the discount in respect of them is to be ‐‐‐‐‐‐‐ |
| A. | Debited |
| B. | Credited |
| C. | Paid |
| D. | None of these |
| Answer» C. Paid | |
| 992. |
All business combinations are accounted for by applying the …….. method |
| A. | acquisition method |
| B. | Equity method |
| C. | both A and B |
| D. | none |
| Answer» B. Equity method | |
| 993. |
A demand Loan is payable on ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ |
| A. | Demand |
| B. | At any time |
| C. | After one year |
| D. | After six months |
| Answer» B. At any time | |
| 994. |
Section ….. of the Companies Act deals with issue of bonus shares |
| A. | 63 |
| B. | 73 |
| C. | 68 |
| D. | 70 |
| Answer» B. 73 | |
| 995. |
Assets which do not carry more than normal credit risk is known as…. |
| A. | loss asset |
| B. | risk asset |
| C. | standard asset |
| D. | none of these |
| Answer» D. none of these | |
| 996. |
The minimum amount of capital which must be subscribed by the public before a public companycan allot shares is ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ |
| A. | Allotment money |
| B. | Minimum subscription |
| C. | Subscribed capital |
| D. | Issued capital. |
| Answer» C. Subscribed capital | |
| 997. |
After realizing all the investments, the balance in the sinking fund account is transferred to………… |
| A. | Profit and Loss A/c |
| B. | Debenture Account |
| C. | Sinking fund A/c |
| D. | Capital reserve |
| Answer» E. | |
| 998. |
Certain assumptions are essential to prepare financial statements. |
| A. | True |
| B. | False |
| C. | none |
| D. | none |
| Answer» B. False | |
| 999. |
Interest on debentures is calculated on ______. |
| A. | Issue price. |
| B. | redeemable price |
| C. | face value |
| D. | market price. |
| Answer» D. market price. | |
| 1000. |
a preference share is one which enjoys a preferential right regarding payment of ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ |
| A. | Dividend |
| B. | Share capital |
| C. | Interest |
| D. | Debentures. |
| Answer» C. Interest | |