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.
| 1001. |
Debenture holders will get …….. |
| A. | Dividend |
| B. | Interest |
| C. | Profit |
| D. | All of these |
| Answer» C. Profit | |
| 1002. |
Dividend paid or declared are subject to corporate Dividend Tax @ 17% as per recent ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ |
| A. | Finance Act |
| B. | Companies Act |
| C. | Partnership Act |
| D. | Insurance Act |
| Answer» B. Companies Act | |
| 1003. |
Voluntary winding up: |
| A. | If period fixed for the company is expired. |
| B. | If company passes a special resolution the company wound up voluntarily. |
| C. | Members voluntary winding up is applicable to solvent companies only. |
| D. | All of the above |
| Answer» E. | |
| 1004. |
NRR stands for ………………………………. |
| A. | Normal rate of return |
| B. | Non resident |
| C. | Natural rate of return |
| D. | Nil rate of return |
| Answer» B. Non resident | |
| 1005. |
Connectivity is acknowledge as a . . . . . . element of the computer system. |
| A. | Sixth |
| B. | Thirth |
| C. | Fourth |
| D. | Fifth |
| Answer» B. Thirth | |
| 1006. |
Redemption of debentures means ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of liability on debentures. |
| A. | Conversion |
| B. | Discharge |
| C. | Creation |
| D. | None of these |
| Answer» C. Creation | |
| 1007. |
In case of electricity companies, contingency reserve is created until itamounts to ….. of the original cost of the fixed assets. |
| A. | 5% |
| B. | 6% |
| C. | 4% |
| D. | 8% |
| Answer» B. 6% | |
| 1008. |
When debentures are redeemed in annual installments the redemption is known as ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐. |
| A. | Redemption by drawing a lot |
| B. | Redemption out of capital |
| C. | Redemption out of profit |
| D. | Redemption by conversion. |
| Answer» B. Redemption out of capital | |
| 1009. |
Unclaimed dividend recorded on the…………………….. the balance sheet. |
| A. | Liability |
| B. | Assets |
| C. | Credit |
| D. | Debit |
| Answer» B. Assets | |
| 1010. |
Insurance business in India is regulated by …………. |
| A. | LIC |
| B. | IRDA |
| C. | RBI |
| D. | SEBI |
| Answer» C. RBI | |
| 1011. |
An item which may or may not be the liability of the company due to happening of certainevent is………… |
| A. | Current Liability |
| B. | Fixed Liability |
| C. | Contingent Liabilit |
| D. | None of these |
| Answer» D. None of these | |
| 1012. |
Goodwill incase of a joint stock on the assets side under the heading of ‐‐‐‐‐‐‐‐‐‐ |
| A. | Fixed assets |
| B. | Current Assets |
| C. | Tangible assets |
| D. | Intangible assets |
| Answer» B. Current Assets | |
| 1013. |
In the case of marine hull insurance, reserve for unexpired risk is to bemaintained @....... %of net premium |
| A. | 50% |
| B. | 80% |
| C. | 100% |
| D. | 20% |
| Answer» D. 20% | |
| 1014. |
In internal reconstruction, amount sacrificed by shareholders are credited to…….. |
| A. | Capital reserve |
| B. | General Reserve |
| C. | Capital reduction account |
| D. | None of these |
| Answer» D. None of these | |
| 1015. |
Trade Payables are recorded in…………………. |
| A. | Current Liabilities |
| B. | Current Assets |
| C. | Equity |
| D. | Inventories |
| Answer» B. Current Assets | |
| 1016. |
------ is a device of reducing the risk undertaken by an insurance company. |
| A. | re-insurance |
| B. | double insurance |
| C. | risk insurance |
| D. | none of these |
| Answer» B. double insurance | |
| 1017. |
Share forfeited Account is shown on the liabilities side of the balance sheet‐‐‐‐‐‐‐‐‐‐‐‐ |
| A. | By adding to the paid up capital |
| B. | Under the head reserves and surpluses |
| C. | Under the head current liabilities |
| D. | Under the head current Assets |
| Answer» B. Under the head reserves and surpluses | |
| 1018. |
Advance payment of tax should be shown on the ‐‐‐‐‐‐‐‐‐‐‐‐ side of the balance sheet. |
| A. | Liability side |
| B. | Asset side |
| C. | Debit side |
| D. | Credit side |
| Answer» C. Debit side | |
| 1019. |
Hitesh Ltd.’s purchase consideration is Rs.12,345 and Net Assets Rs.3,568,then........... |
| A. | Goodwill Rs. 8,777 |
| B. | Capital Reserve Rs. 8,777 |
| C. | Goodwill Rs. 15,913 |
| D. | Capital Reserve Rs. 15,913 |
| Answer» B. Capital Reserve Rs. 8,777 | |
| 1020. |
…………..is an agreement between two insurance companies whereby one transfers a part ofrisk to other. |
| A. | Reinsurance |
| B. | Sub insurance |
| C. | Shared Policy |
| D. | None of these |
| Answer» B. Sub insurance | |
| 1021. |
Software, refers to the physical devices of a computer system |
| A. | True |
| B. | False |
| C. | none |
| D. | none |
| Answer» C. none | |
| 1022. |
If the preference shareholder agree to sacrifice the arrear off preference dividend, it iscredited to: |
| A. | Capital Reduction A/C |
| B. | Preference Shareholders A/C |
| C. | Goodwill A/c |
| D. | Profit& Loss A/C |
| Answer» B. Preference Shareholders A/C | |
| 1023. |
An annual payment which an insurer guarantees to pay for lump sum money received in thebeginning is called …………. |
| A. | Premium |
| B. | Annuity |
| C. | Claim |
| D. | Policy |
| Answer» C. Claim | |
| 1024. |
Yield value depends on ___________. |
| A. | future maintainable profit |
| B. | paid-up equity capital |
| C. | normal rate of return |
| D. | none of the above |
| Answer» E. | |
| 1025. |
Loss Prior to incorporation is treated as ........... Loss, and Vendor’s Salaries arechargeable to ................ incorporation period. |
| A. | Pre |
| B. | During |
| C. | Post |
| D. | In between |
| Answer» D. In between | |
| 1026. |
General insurance policies are generally taken for |
| A. | one year |
| B. | two years |
| C. | three years |
| D. | none |
| Answer» B. two years | |
| 1027. |
Premium on issue of debentures is a ‐‐‐‐‐‐‐‐‐‐‐. |
| A. | Capital loss |
| B. | Capital profit |
| C. | Revenue profit |
| D. | Revenue loss. |
| Answer» C. Revenue profit | |
| 1028. |
The amount of profit kept a side to maintain uniform rate of dividend iscalled……………… |
| A. | Ex Dividend |
| B. | Final Dividend |
| C. | Undistributed Dividend |
| D. | Dividend |
| Answer» D. Dividend | |
| 1029. |
Preference shares cannot be redeemed at ……….. |
| A. | Par |
| B. | Premium |
| C. | Discount |
| D. | All of these |
| Answer» D. All of these | |
| 1030. |
Rebate on bills discounted is ……….. |
| A. | An income accrued but not received |
| B. | A liability |
| C. | An expense |
| D. | Income received in advance |
| Answer» E. | |
| 1031. |
Which of the following is true about financial statements?I)Financial statement gives a summary of accounts. II) Financial statements can be stated as recorded facts. |
| A. | Only I |
| B. | Only II |
| C. | Both I andII |
| D. | None of the above |
| Answer» D. None of the above | |
| 1032. |
…….is a reserve created to meet any loss due to natural calamities. |
| A. | revenue reserve |
| B. | capital reserve |
| C. | catastrophe reserve |
| D. | none of these |
| Answer» D. none of these | |
| 1033. |
‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is an invitation made by the company to the public for subscribing its shares. |
| A. | Memorandum of association |
| B. | Articles of association |
| C. | Prospectus |
| D. | Table A. |
| Answer» D. Table A. | |
| 1034. |
Yield value is based on the assumption that ………………. |
| A. | Revenue realisation |
| B. | Going concern |
| C. | Prudence |
| D. | Cost concept |
| Answer» C. Prudence | |
| 1035. |
Debentures constitute ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ capital of the company |
| A. | Owned |
| B. | Borrowed |
| C. | Reserve |
| D. | None of these |
| Answer» C. Reserve | |
| 1036. |
Shares received from the new company are recorded at – |
| A. | Face value |
| B. | Average price |
| C. | Market value |
| D. | None of the above |
| Answer» D. None of the above | |
| 1037. |
Share can be forfeited for ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐. |
| A. | For non‐payment of call money |
| B. | For failure to attend meetings |
| C. | Failure to repay the loan |
| D. | None of these. |
| Answer» B. For failure to attend meetings | |
| 1038. |
Revenue reserve means any reserve other than ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ reserve. |
| A. | General |
| B. | Capital |
| C. | Capital Redemption |
| D. | Other reserve. |
| Answer» E. | |
| 1039. |
Which type of asset class includes those assets which have only definite use andbecome valueless when the yield is over? |
| A. | Fixed asset |
| B. | Current asset |
| C. | Fictitious asset |
| D. | Wasting asset |
| Answer» E. | |
| 1040. |
Ordinarily ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ are available for the distribution of dividend. |
| A. | Revenue profits |
| B. | Capital profits |
| C. | Gross profit |
| D. | Trading profits |
| Answer» B. Capital profits | |
| 1041. |
EPS depends on net profit available to………………. Shareholders. |
| A. | Equity |
| B. | Preference |
| C. | Debenture |
| D. | Both A and B |
| Answer» B. Preference | |
| 1042. |
When two or more companies carrying on similar business decide to combine, a newcompany is formed, it is known as .................. |
| A. | Amalgamation |
| B. | Absorption |
| C. | Internal reconstruction |
| D. | External reconstruction |
| Answer» B. Absorption | |
| 1043. |
The P&L A/c of Banking Companies are prepared as per …………. of Banking Regulation Act. |
| A. | Form A of Schedule III |
| B. | Form B of Schedule III |
| C. | Form A of Sch edule VI |
| D. | Form B of Schedule VI |
| Answer» C. Form A of Sch edule VI | |
| 1044. |
Interest on debenture is …. |
| A. | adjustment of profit |
| B. | appropriation of profit |
| C. | charge on profit |
| D. | none |
| Answer» D. none | |
| 1045. |
Legal expenses in respect of claims of an insurance company is shown in ----------- |
| A. | P&L a/c |
| B. | Revenue a/c |
| C. | Balance sheet |
| D. | Surplus a/c |
| Answer» C. Balance sheet | |
| 1046. |
Amount due to workman is rank with ……………….in the event of liquidation of thecompany. |
| A. | Government Dues |
| B. | Secured creditors |
| C. | Unsecured creditors |
| D. | Preferential liabilities |
| Answer» C. Unsecured creditors | |
| 1047. |
Once the share premium account is credited the same, if the premium is not received. |
| A. | Cannot be debited |
| B. | Cannot be credited |
| C. | Can be debited |
| D. | Can be credited |
| Answer» D. Can be credited | |
| 1048. |
If one share is allotted for every five shares applied, an applicant for 1,000 shares will get ‐‐‐‐‐‐‐‐‐‐‐ |
| A. | 200 shares |
| B. | 5000 shares |
| C. | 5 shares |
| D. | 6 shares. |
| Answer» B. 5000 shares | |
| 1049. |
19. Trade liabilities include ……….. |
| A. | Creditors |
| B. | Debentures |
| C. | Bank overdraft |
| D. | All of these |
| Answer» B. Debentures | |
| 1050. |
The Balance sheet of Companies are prepare in the form ………. |
| A. | Part I of Schedule V |
| B. | Part I of Schedule VI |
| C. | Part II of Schedule V |
| D. | Part II of Schedule VI |
| Answer» C. Part II of Schedule V | |