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. |
Trading account is a |
| A. | personal account |
| B. | real account |
| C. | nominal account |
| D. | representative personal account |
| Answer» D. representative personal account | |
| 2. |
Commission paid is a |
| A. | personal account |
| B. | real account |
| C. | nominal account |
| D. | representative personal account |
| Answer» D. representative personal account | |
| 3. |
Outstanding salary account is a |
| A. | natural personal account |
| B. | artificial personal account |
| C. | representative personal account |
| D. | real account |
| Answer» D. real account | |
| 4. |
Co-operative societies is an example of |
| A. | personal account |
| B. | real account |
| C. | nominal account |
| D. | representative personal account |
| Answer» B. real account | |
| 5. |
While putting the value or price of an entity in financial records the lowest price is recordednot the current price or current market value. This is known as |
| A. | business entity concept |
| B. | conservatism |
| C. | cost concept |
| D. | money measurement concept |
| Answer» C. cost concept | |
| 6. |
Dividing the expenditure into capital and revenue is according to |
| A. | business entity concept |
| B. | going concern concept |
| C. | money measurement concept |
| D. | accounting period concept |
| Answer» E. | |
| 7. |
All the transactions measurable in the terms of money are recorded in accounts is accordingto |
| A. | business entity concept |
| B. | going concern concept |
| C. | money measurement concept |
| D. | accounting period concept |
| Answer» D. accounting period concept | |
| 8. |
Accounting Standard 11 (AS 11) is prescribed by the… |
| A. | international financial reporting standards |
| B. | the companies\ act |
| C. | institute of chartered accountants of india |
| D. | the government of india |
| Answer» D. the government of india | |
| 9. |
Foreign Debtors appear at the year end on... |
| A. | the balance sheet rate of exchange |
| B. | fair value |
| C. | original value |
| D. | agreed value |
| Answer» B. fair value | |
| 10. |
The Liability of the members of a limited company is… |
| A. | unlimited |
| B. | restricted |
| C. | as per the articles of association |
| D. | limited |
| Answer» E. | |
| 11. |
ABC & Co. takes over the running business of PQR & Co. This is known as… |
| A. | internal reconstruction |
| B. | absorption |
| C. | external reconstruction |
| D. | pouncing |
| Answer» C. external reconstruction | |
| 12. |
Purchase consideration can be calculated by… |
| A. | market value method |
| B. | book value method |
| C. | net assets method |
| D. | balance sheet method |
| Answer» D. balance sheet method | |
| 13. |
Pro-rata payment is applicable when the cash available for competing liabilities of the same class is.. |
| A. | insufficient |
| B. | adequate |
| C. | reserved |
| D. | paid to partners |
| Answer» B. adequate | |
| 14. |
In peicemeal distribution of cash, the first external liabilities to be paid are… |
| A. | government dues |
| B. | partners\ loans |
| C. | preferential creditors |
| D. | secured creditors |
| Answer» E. | |
| 15. |
The limit on the number of partners is indirectly placed by… |
| A. | the partnership act |
| B. | the association of persons act |
| C. | the companie\s act |
| D. | the corporate associations act |
| Answer» D. the corporate associations act | |
| 16. |
The maximum number of Partners which can be allowed as partners in a firm are… |
| A. | 40 |
| B. | 20 |
| C. | 25 |
| D. | 30 |
| Answer» C. 25 | |
| 17. |
Partnership firm is constituted under the…. |
| A. | indian partnership act 1932 |
| B. | indian partnership act 1955 |
| C. | the association of persons act 1932 |
| D. | the indian association act 1955 |
| Answer» B. indian partnership act 1955 | |
| 18. |
. …………..is an agreement between two insurance companies whereby one transfers a partof risk to other. |
| A. | Reinsurance |
| B. | Sub insurance |
| C. | Shared Policy |
| D. | None of these |
| Answer» B. Sub insurance | |
| 19. |
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 | |
| 20. |
. ………..is the amount payable to the insured on the happening of event. |
| A. | Premium |
| B. | Annuity |
| C. | Claim |
| D. | Policy |
| Answer» D. Policy | |
| 21. |
Insurance business in India is regulated by …………. A. LIC B. IRDA C. RBI D. SEBI193. Under …………., the sum assured is given to the beneficiary only on death of policyholder. |
| A. | Whole Life Policy |
| B. | Endowment Policy |
| C. | Annuity |
| D. | None of these |
| Answer» C. Annuity | |
| 22. |
. ……………is the party who undertakes the risk in insurance. |
| A. | Insurer |
| B. | Assurer |
| C. | Underwriter |
| D. | All of these |
| Answer» E. | |
| 23. |
. ………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 | |
| 24. |
. ………… is shown under Schedule 15. |
| A. | Interest earned |
| B. | Profit |
| C. | Interest Expended |
| D. | Appropriations |
| Answer» D. Appropriations | |
| 25. |
. …….of profit is transferred to statutory reserves. |
| A. | 10% |
| B. | 20% |
| C. | 25% |
| D. | 30% |
| Answer» D. 30% | |
| 26. |
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 Schedule VI |
| D. | Form B of Schedule VI |
| Answer» C. Form A of Schedule VI | |
| 27. |
Trade liabilities include ……….. |
| A. | Creditors |
| B. | Debentures |
| C. | Bank overdraft |
| D. | All of these |
| Answer» B. Debentures | |
| 28. |
. ……..is a charge against profit of the company |
| A. | Provision |
| B. | Reserves |
| C. | Surplus |
| D. | All of these |
| Answer» B. Reserves | |
| 29. |
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. | |
| 30. |
. Unsecured debentures are called as ……………….debentures |
| A. | Naked |
| B. | Mortgage |
| C. | Registered |
| D. | Bearer |
| Answer» B. Mortgage | |
| 31. |
. …………debentures are secured by the assets of the company |
| A. | Naked |
| B. | Mortgage |
| C. | Registered |
| D. | Bearer |
| Answer» C. Registered | |
| 32. |
. ………..debentures are transferable by mere delivery |
| A. | Naked |
| B. | Mortgage |
| C. | Registered |
| D. | Bearer |
| Answer» E. | |
| 33. |
. …………..debentures can be transferred only with the knowledge of the company. |
| A. | Naked |
| B. | Mortgage |
| C. | Registered |
| D. | Bearer |
| Answer» D. Bearer | |
| 34. |
. …………..is that portion of issued capital which is applied for by the public. |
| A. | Issued capital |
| B. | Subscribed capital |
| C. | Nominal Capital |
| D. | Paid up capital |
| Answer» C. Nominal Capital | |
| 35. |
. ……………is an instrument of acknowledgment of debt. |
| A. | Equity share |
| B. | Preference Share |
| C. | Debenture |
| D. | All of these |
| Answer» D. All of these | |
| 36. |
The minimum application money to be paid by an applicant must not be less than ……as per Companies Act. |
| A. | 10% |
| B. | 5% |
| C. | 15% |
| D. | 20% |
| Answer» C. 15% | |
| 37. |
. ………..of total issued amount of capital is called minimum subscription. |
| A. | 75% |
| B. | 90% |
| C. | 95% |
| D. | 80% |
| Answer» C. 95% | |
| 38. |
. …………..shares are repayable after the expiry of the fixed period or at the option of thecompany. |
| A. | Participating |
| B. | Convertible |
| C. | Cumulative |
| D. | Redeemable |
| Answer» E. | |
| 39. |
In case of ……………..preference shares, the arrears of dividend are carried forwardand paid out of the profits of the subsequent years. |
| A. | Participating |
| B. | Convertible |
| C. | Cumulative |
| D. | Redeemable |
| Answer» D. Redeemable | |
| 40. |
. …………..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. | |
| 41. |
. ……….is the first stage in the formation of a public company |
| A. | Promotion |
| B. | Incorporation |
| C. | Capital Subscription |
| D. | Commencement |
| Answer» B. Incorporation | |
| 42. |
. ………….company Is a company created by a special Act in Parliament |
| A. | Government |
| B. | Registered |
| C. | Chartered |
| D. | Statutory |
| Answer» E. | |
| 43. |
The process of converting foreign – subsidiary financial statements into the home currency isknown as------------ |
| A. | Transmission |
| B. | Translation |
| C. | Consolidation |
| D. | Reconstruction |
| Answer» C. Consolidation | |
| 44. |
The international accounting standards committee was set up in ------------- |
| A. | 1982 |
| B. | 1976 |
| C. | 1967 |
| D. | 2009 |
| Answer» D. 2009 | |
| 45. |
The global key professional accounting body is ----- |
| A. | Internal accounting standards board |
| B. | The institute of chartered accountants of india |
| C. | The financial accounting standards board |
| D. | The international accounting standards committee |
| Answer» B. The institute of chartered accountants of india | |
| 46. |
Which of the following relate to financial position in a set of financial statements? |
| A. | Assets , liabilities, income and expense |
| B. | Assets, liabilities, income and equity |
| C. | Income and expense |
| D. | Income, expense and liabilities |
| Answer» C. Income and expense | |
| 47. |
A conceptual framework for accounting is … |
| A. | A set of financial statements |
| B. | A set of rules governing financial reporting |
| C. | A set of components of financial statements |
| D. | A set of principles underpinning financial reporting |
| Answer» E. | |
| 48. |
Which of the following is not an advantage of having a conceptual framework of accounting ? |
| A. | Development of accounting standards is subject less political pressure |
| B. | A consistent balance sheet or income statement approach is used to setting standards |
| C. | Considers the needs of all user |
| D. | Avoids a mixed up approach to setting standards |
| Answer» D. Avoids a mixed up approach to setting standards | |
| 49. |
Which of the following of an insurance company is included in other assets |
| A. | Loan to directors |
| B. | agents balance |
| C. | advance tax paid |
| D. | none of these |
| Answer» C. advance tax paid | |
| 50. |
Which of the following of an insurance company does not fall under income from investment |
| A. | Interest and dividends |
| B. | profit on sale of investment |
| C. | share transfer fee |
| D. | none of these. |
| Answer» D. none of these. | |