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.
| 1151. |
General insurance is a contract of …… |
| A. | contribution |
| B. | indemnity |
| C. | guarantee |
| D. | none of these |
| Answer» C. guarantee | |
| 1152. |
When one of the existing companies take over business of another company orcompanies, it is known as………………………………… |
| A. | Merger |
| B. | Amalgamation |
| C. | Absorption |
| D. | Demerger |
| Answer» D. Demerger | |
| 1153. |
Bonus issue is permitted only if all partly paid shares are made‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ |
| A. | Fully paid shares |
| B. | ¾ Fully paid |
| C. | ¼ Fully paid |
| D. | None of these |
| Answer» B. ¾ Fully paid | |
| 1154. |
……….. is called factory of credit |
| A. | company |
| B. | bank |
| C. | firm |
| D. | none |
| Answer» C. firm | |
| 1155. |
When one of the existing companies take over business of another company or companies, it is known as ........... |
| A. | Amalgamation |
| B. | Absorption |
| C. | Internal reconstruction |
| D. | External reconstruction |
| Answer» C. Internal reconstruction | |
| 1156. |
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. | 51% |
| B. | 90% |
| C. | 99% |
| D. | 100% |
| Answer» C. 99% | |
| 1157. |
Share application account is in the nature of ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ account. |
| A. | Personal |
| B. | Real |
| C. | Nominal |
| D. | None of these. |
| Answer» B. Real | |
| 1158. |
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 | |
| 1159. |
Unclaimed dividend is shown in the balance sheet under the head …….. |
| A. | Reserves and Surplus |
| B. | Current Liabilities |
| C. | Loans and Advances |
| D. | Current Assets |
| Answer» C. Loans and Advances | |
| 1160. |
Computerized accounting requires transaction data to be enteredinto……………………… |
| A. | Accounting Package. |
| B. | Accounting software |
| C. | Accounting estimates |
| D. | none |
| Answer» B. Accounting software | |
| 1161. |
The share premium account can be utilized to write off the ‐‐‐‐‐‐‐‐‐‐‐‐‐ expense of the company. |
| A. | Printing expenses |
| B. | Establishment expenses |
| C. | Preliminary expenses |
| D. | None of these. |
| Answer» D. None of these. | |
| 1162. |
Fair value of a share is the ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ average of intrinsic value and yield value. |
| A. | Weighted |
| B. | Simple |
| C. | Multiple |
| D. | None of these. |
| Answer» C. Multiple | |
| 1163. |
Face value debentures of subsidiary co. held by Holding Company is deducted from |
| A. | Debentures |
| B. | Cost of control |
| C. | Minority interest |
| D. | Debentures in consolidated balance sheet |
| Answer» C. Minority interest | |
| 1164. |
Net asset value method is based on the assumption that the company is___________. |
| A. | a going concern |
| B. | going to be liquidated. |
| C. | A & B both |
| D. | none of the above |
| Answer» C. A & B both | |
| 1165. |
Assets in to Balance sheet of a limited company are arranged in order of :‐ |
| A. | Liquidity |
| B. | Permanence |
| C. | Durability |
| D. | Turnover |
| Answer» C. Durability | |
| 1166. |
Banking companies are governed in India by |
| A. | Banking Regulation Act |
| B. | Indian Companies Act |
| C. | RBI Act |
| D. | all the |
| Answer» B. Indian Companies Act | |
| 1167. |
Profit earned after acquisition of share is treated as: |
| A. | Revenue Profit |
| B. | Capital Profit |
| C. | Goodwill |
| D. | None of the above. |
| Answer» B. Capital Profit | |
| 1168. |
On standard asset a minimum provision of….is required |
| A. | .25% |
| B. | .10% |
| C. | .40% |
| D. | none of these |
| Answer» D. none of these | |
| 1169. |
The first item in order of payment to be made by liquidator is: |
| A. | Secured creditors |
| B. | Preferential creditors |
| C. | Liquidation expenses |
| D. | Preferential creditors |
| Answer» D. Preferential creditors | |
| 1170. |
IRDA Act came into effect in |
| A. | 1938 |
| B. | 1999 |
| C. | 2000 |
| D. | none |
| Answer» C. 2000 | |
| 1171. |
In case of redemption out f profit, an amount equal to face value of shares so redeemedshould be transferred to ………… |
| A. | Security premium |
| B. | Capital Redemption Reserve |
| C. | Dividend Equalization Reserve |
| D. | None of these |
| Answer» C. Dividend Equalization Reserve | |
| 1172. |
If the purchase price of debentures includes interest for the expiredperiod, the quotation is said to be ………….. |
| A. | Ex‐interest |
| B. | Cum‐interest |
| C. | Co‐interest |
| D. | None of these |
| Answer» C. Co‐interest | |
| 1173. |
A company in which the transferability of share is restricted is called as ………….. |
| A. | Government Company |
| B. | Private Company |
| C. | Public Company |
| D. | Foreign Company |
| Answer» C. Public Company | |
| 1174. |
Intrinsic Value Method is also called as……………….. |
| A. | Yield method |
| B. | Fair value method |
| C. | Asset Backing method |
| D. | none |
| Answer» D. none | |
| 1175. |
While deciding net asset value, fictitious assets ___________. |
| A. | should be considered |
| B. | should not be considered |
| C. | added to total assets |
| D. | none of the above |
| Answer» C. added to total assets | |
| 1176. |
No dividend is payable on calls in ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ |
| A. | Arrears |
| B. | Unpaid |
| C. | Unclaimed |
| D. | Advance |
| Answer» E. | |
| 1177. |
Under purchase method, the excess of net assets over purchase consideration is ………. |
| A. | Debited to goodwill account |
| B. | Credited to goodwill account |
| C. | Credited to capital reserve account |
| D. | Debited to capital reserve account |
| Answer» D. Debited to capital reserve account | |
| 1178. |
Debentures repayable after a fixed period of a time are called ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ debentures. |
| A. | Convertible |
| B. | Redeemable |
| C. | Bearer |
| D. | Secured |
| Answer» C. Bearer | |
| 1179. |
Spreadsheet software can be utilize to generate accounting reports. |
| A. | True |
| B. | False |
| C. | none |
| D. | none |
| Answer» B. False | |
| 1180. |
Insurance Act came in to effect in…., |
| A. | 1956 |
| B. | 1972 |
| C. | 1938 |
| D. | none of these |
| Answer» D. none of these | |
| 1181. |
Which of the following is an example for capital profit? |
| A. | Capital Reserves |
| B. | Security premium |
| C. | Forfeited shares |
| D. | All of these. |
| Answer» E. | |
| 1182. |
Net Assets minus Capital Reserve is _________ |
| A. | Goodwill |
| B. | Total assets |
| C. | Purchase consideration |
| D. | None of these |
| Answer» D. None of these | |
| 1183. |
If the purchase price of debentures excluding interest for the expired period, the quotationis said to be ………….. |
| A. | Ex‐interest |
| B. | Cum‐interest |
| C. | Co‐interest |
| D. | None of these. |
| Answer» B. Cum‐interest | |
| 1184. |
Under ……policy the sum assured becomes payable on the attainment of a specificage or on death whichever is earlier |
| A. | whole time life policy |
| B. | endowment policy |
| C. | with profit policy |
| D. | none of these |
| Answer» C. with profit policy | |
| 1185. |
Schedule 1 is concerned with …………. |
| A. | Cash and balance with RBI |
| B. | Capital |
| C. | Reserves and Surplus |
| D. | Investments |
| Answer» C. Reserves and Surplus | |
| 1186. |
20. Purchase consideration includes ……….. |
| A. | Cash |
| B. | Shares |
| C. | Debentures |
| D. | All of these |
| Answer» E. | |
| 1187. |
Clear profit is the difference between |
| A. | reasonable return and appropriations |
| B. | total income and expenditure |
| C. | reasonable return and total profit |
| D. | none |
| Answer» C. reasonable return and total profit | |
| 1188. |
The issue of shares at discount provided the discount does not exceed 10% as specified in ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of the companies Act. |
| A. | Section80 |
| B. | Section 81 |
| C. | Section 79 |
| D. | Section 76 |
| Answer» D. Section 76 | |
| 1189. |
In amalgamation of two companies |
| A. | Both companies lose their existence |
| B. | Both companies continue |
| C. | Any one company continues |
| D. | none |
| Answer» B. Both companies continue | |
| 1190. |
………..is the amount payable to the insured on the happening of event. |
| A. | Premium |
| B. | Annuity |
| C. | Claim |
| D. | Policy |
| Answer» D. Policy | |
| 1191. |
Bonus issue can be made out of securities premium collected in ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ |
| A. | Cash only |
| B. | In kind |
| C. | Partly in cash and in kind |
| D. | None of these. |
| Answer» B. In kind | |
| 1192. |
When preference shares are redeemed, it amounts to |
| A. | increase in share capital |
| B. | decrease in share capital |
| C. | Both A and B |
| D. | none |
| Answer» E. | |
| 1193. |
If the actual profits are more than the expected normal profits, the difference is termed as ‐‐‐‐‐‐‐ |
| A. | Simple profit |
| B. | Average profit |
| C. | We gated Average profit |
| D. | Super profit |
| Answer» E. | |
| 1194. |
Unsecured debentures are called as ……………….debentures |
| A. | Naked |
| B. | Mortgage |
| C. | Registered |
| D. | Bearer |
| Answer» B. Mortgage | |
| 1195. |
………is a form of agreement between two parties in which one party agrees to make goodfor loss of another. |
| A. | Contract |
| B. | Insurance |
| C. | Banking |
| D. | Mutual fund |
| Answer» C. Banking | |
| 1196. |
Profit on the re‐issue of forfeited shares is transferred to ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ account. |
| A. | General reserve |
| B. | Capital reserve |
| C. | Capital redemption reserve |
| D. | none of these. |
| Answer» C. Capital redemption reserve | |
| 1197. |
Banks are required to transfer ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of their profits to a statutory Reserve. |
| A. | 25% |
| B. | 205 |
| C. | 15% |
| D. | 10% |
| Answer» B. 205 | |
| 1198. |
Profit not available for dividend includes |
| A. | CRR |
| B. | P&L account credit balance |
| C. | security premium |
| D. | None |
| Answer» C. security premium | |
| 1199. |
Net Assets minus Capital Reserve is……………………… |
| A. | Purchase consideration |
| B. | Goodwill |
| C. | Liabilities |
| D. | Total Assets |
| Answer» B. Goodwill | |
| 1200. |
A ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ company should transfer 25% of its profits to a statutory reserve |
| A. | Joint stock company |
| B. | Insurance company |
| C. | Private limited company |
| D. | Banking company |
| Answer» E. | |