MCQOPTIONS
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MCQOPTIONS
This section includes 1706 Mcqs, each offering curated multiple-choice questions to sharpen your Finance & Accounting knowledge and support exam preparation. Choose a topic below to get started.
| 351. |
16. If the whole of the issue of shares or debentures is underwritten it is known as_______________________ |
| A. | partial underwriting |
| B. | frim underwriting |
| C. | sole underwriting |
| D. | complete or fully underwriting |
| Answer» E. | |
| 352. |
15. Accrued Holiday remuneration becoming payable to any workman is treated as ________________________ |
| A. | unsecured creditors |
| B. | preferential creditors |
| C. | over-riding preferential creditors |
| D. | secured creditors |
| Answer» D. secured creditors | |
| 353. |
14. In Interanl Reconstruction____________________ |
| A. | only on company goes into liquidation |
| B. | no company is liquidated |
| C. | one or more companies go into liquidation |
| D. | two or more companies are liquidated |
| Answer» C. one or more companies go into liquidation | |
| 354. |
13. According to AS 14, Transferor company means the company__________ |
| A. | into which a company is amalgamated |
| B. | which is amalgamated into another company |
| C. | which is newly formed |
| D. | which is any one old company into new comapny |
| Answer» C. which is newly formed | |
| 355. |
12. Buy Back must be completed within_______________ |
| A. | 3 months |
| B. | 6 months |
| C. | 2 months |
| D. | 12 months |
| Answer» E. | |
| 356. |
11. M LTD. Issued share at a face value of Rs. 100 with a premium of Rs.20 per share. The underwrting commission will be calculated on __________ |
| A. | rs.120 |
| B. | rs.90 |
| C. | rs.100 |
| D. | rs.80 |
| Answer» B. rs.90 | |
| 357. |
10. Amount of retirement benefits of employees exceeding Rs.20,000 per employees is treated as____________ |
| A. | secured creditors |
| B. | unsecured creditors |
| C. | over-riding preferential creditors |
| D. | preferential creditors |
| Answer» E. | |
| 358. |
9. Equity Shareholders giving up their claim to the reserves & accumulated profit amounts to______________ |
| A. | reduction of share capital |
| B. | alteration of share capital |
| C. | compromise/ arrangement |
| D. | variation of shareholders rights |
| Answer» D. variation of shareholders rights | |
| 359. |
8. Accounting for Absorption is governed by______________ |
| A. | as 1 |
| B. | as 13 |
| C. | as 11 |
| D. | as 14 |
| Answer» E. | |
| 360. |
7. Buy Back refers to______________ |
| A. | refund of debentures |
| B. | refund of preference share capital |
| C. | refund of equity share capital |
| D. | purchase of own debenture |
| Answer» D. purchase of own debenture | |
| 361. |
6. R LTD. Issued a debenture of Rs.100 each at Rs.90. The underwriting commission will be paid on___________ |
| A. | rs.95 |
| B. | rs.90 |
| C. | rs.105 |
| D. | rs.100 |
| Answer» C. rs.105 | |
| 362. |
5. In the case of members voluntary winding up liquidator is appointed by _____________ |
| A. | the registrar of companies |
| B. | the central government |
| C. | the company in general meeting |
| D. | the board of directors |
| Answer» D. the board of directors | |
| 363. |
4. Changes in the rate of Preference dividend payable in future without any change in the amount of capital is known as ___ |
| A. | reduction of share capital |
| B. | variation of shareholders rights |
| C. | alteration of share capital |
| D. | compromise/ arrangement |
| Answer» C. alteration of share capital | |
| 364. |
3. A feature which is common in all cases or merger__________________- |
| A. | liquidation of at least two companies |
| B. | liquidation at least one existing company & formation of another company |
| C. | formation of at least one new company |
| D. | purchase of one comapany by another company |
| Answer» E. | |
| 365. |
2. The Buy Back of equity shares is governed by________________ of Companies Act |
| A. | section 117 c |
| B. | section 80 |
| C. | section 100 to 104 |
| D. | section 68 |
| Answer» B. section 80 | |
| 366. |
1. The underwriting commission in the case of debentures as per Companies Act, should not exceed_________ |
| A. | 2.5% of the price at which debenture are issued |
| B. | 3% of the price at which the debentures are issued |
| C. | 4% of the price at which debentures are issued |
| D. | 5% of the price at which debentures are issued |
| Answer» B. 3% of the price at which the debentures are issued | |
| 367. |
Advertisement is a |
| A. | Revenue expense |
| B. | Capital expense |
| C. | Day today expense |
| D. | Deferred revenue expense |
| Answer» E. | |
| 368. |
Petty cash book is prepaid under ______ system |
| A. | Cash |
| B. | Imprest |
| C. | Credit |
| D. | Mercantile |
| Answer» C. Credit | |
| 369. |
Provision is created for — |
| A. | Unknown Liabilities ; |
| B. | Known Liabilities ; |
| C. | Creation of Secret Reserves ; |
| D. | All the Three |
| Answer» C. Creation of Secret Reserves ; | |
| 370. |
Every transaction has two aspects i.e., debit and credit, under which of the followingaccounting principles: |
| A. | Cash Accrual Principle |
| B. | Revenue Accrual Principle |
| C. | Dual Aspect Principle |
| D. | Double Entry Book-keeping System |
| Answer» D. Double Entry Book-keeping System | |
| 371. |
The comparison of the results of one accounting period with that in the past is possiblewhen the following convention is followed: |
| A. | Convention of Consistency |
| B. | Convention of Full Disclosure |
| C. | Convention of Materiality |
| D. | Convention of Prudence |
| Answer» B. Convention of Full Disclosure | |
| 372. |
The International Accounting Standards Committee was set up in — |
| A. | 1976 |
| B. | 1967 |
| C. | 1982 |
| D. | 2009 |
| Answer» C. 1982 | |
| 373. |
Codification of Accounts required for the purpose of: |
| A. | Hierarchical relationship between groups and components |
| B. | Data processing faster and preparing of final accounts |
| C. | Keeping data and information secured |
| D. | None of the above |
| Answer» B. Data processing faster and preparing of final accounts | |
| 374. |
Accounting standards issued by ICAI are mandatory in India.Sol: |
| A. | True |
| B. | False |
| C. | none |
| D. | all |
| Answer» B. False | |
| 375. |
` 5,500 incurred on sundry expenses inadvertently recorded in the books of account as ` 550. This isan example of — |
| A. | Fraud ; |
| B. | Error of Commission ; |
| C. | Error of Principle ; |
| D. | Compensatory Error |
| Answer» C. Error of Principle ; | |
| 376. |
In single entry system profit is calculated as follows: |
| A. | Opening Capital + Drawing + Fresh Capital- Ending capital |
| B. | Capital at the end – Drawing – Fresh capital - Opening capital |
| C. | Capital at the end + Drawing – Fresh capital -Opening capital |
| D. | None of the above |
| Answer» D. None of the above | |
| 377. |
Which of the following is not a not-for-profit organisation ?Sol: |
| A. | College |
| B. | Sports Club |
| C. | Tata Automobiles |
| D. | Hospital |
| Answer» D. Hospital | |
| 378. |
In case f recoupment of shortworking, the lessee:Sol: |
| A. | Debits Shortworking Account |
| B. | Credit Profit and loss account |
| C. | Credit short working Account |
| D. | None of the above |
| Answer» D. None of the above | |
| 379. |
Which accounting concept should be considered if the owner of a business takes goodsfrom inventory for his own personal use? |
| A. | The prudence concept |
| B. | The capitalisation concept |
| C. | The money measurement concept |
| D. | none |
| Answer» E. | |
| 380. |
Bad debts recovered account will be transferred to |
| A. | Debtor‘s Account |
| B. | Profit and Loss Account |
| C. | Provision for Doubtful Debt Account |
| D. | Either (b )or (c) above |
| Answer» E. | |
| 381. |
Building expenses should be divided among the different departments according to the ______by each departments |
| A. | Area occupied |
| B. | No of employees |
| C. | Direct wages |
| D. | Direct material |
| Answer» B. No of employees | |
| 382. |
Share premium money can be used for: |
| A. | Payment of dividend |
| B. | Writing off Goodwill |
| C. | Issue of fully paid bonus shares |
| D. | none |
| Answer» D. none | |
| 383. |
Purchase of goods on credit |
| A. | Increases Liabilities |
| B. | Increases Assets |
| C. | Increases both Assets and Liabilities |
| D. | Decreases Assets |
| Answer» D. Decreases Assets | |
| 384. |
Debenture holder receive: |
| A. | Fixed Interest |
| B. | Dividend |
| C. | Profit |
| D. | None of them |
| Answer» B. Dividend | |
| 385. |
The difference between hire purchase price and the cash price is called ______ |
| A. | Hire charges |
| B. | Cost of the asset |
| C. | Installment price |
| D. | Cash price |
| Answer» B. Cost of the asset | |
| 386. |
The estimate about useful life of a fixed asset: |
| A. | Can never be changed |
| B. | Can be changed |
| C. | all |
| D. | none |
| Answer» C. all | |
| 387. |
In Single entry system, it is not possible to prepare: |
| A. | Receipts and payments A/c |
| B. | Trial balance |
| C. | Balance sheet |
| D. | Account sales |
| Answer» C. Balance sheet | |
| 388. |
To find out the opening and closing capitals statement of affairs are prepared |
| A. | one |
| B. | two |
| C. | three |
| D. | four |
| Answer» C. three | |
| 389. |
Short term provisions in the Balance Sheet include: |
| A. | Provision for income tax |
| B. | Provision for dividend |
| C. | Provision for corporate dividend tax |
| D. | All the above |
| Answer» E. | |
| 390. |
Premium received on issue of shares cannot be utilized for ---------. |
| A. | for the issue of bonus shares |
| B. | for writing of preliminary expenses |
| C. | for providing premium payable on redemption |
| D. | for distribution of dividend |
| Answer» E. | |
| 391. |
The person to whom bill is endorsed is known as __________. |
| A. | Endorsee |
| B. | Drawee |
| C. | Drawer |
| D. | None of the above |
| Answer» B. Drawee | |
| 392. |
Liability A/c has……………. Balance |
| A. | Debit ; |
| B. | Credit ; |
| C. | No balance ; |
| D. | Either (a) or (b) |
| Answer» C. No balance ; | |
| 393. |
Which of the following methods is not a practical way of realizing revenue? |
| A. | Delivery method |
| B. | Percentage-of-completion method |
| C. | Production method |
| D. | Moving average method |
| Answer» E. | |
| 394. |
“Assets should be valued at the price paid to acquire them” is based on? |
| A. | Accrual concept. |
| B. | Cost concept. |
| C. | Money measurement concept. |
| D. | Realization concept. |
| Answer» D. Realization concept. | |
| 395. |
In case of Annuity Method, the amount of depreciation is: |
| A. | Increasing every year |
| B. | Fixed for all the year |
| C. | Decreasing every year |
| D. | none |
| Answer» C. Decreasing every year | |
| 396. |
The system of keeping incomplete record is termed as |
| A. | Double entry system |
| B. | Original entry system |
| C. | Single entry system |
| D. | journal entry system |
| Answer» D. journal entry system | |
| 397. |
Things which are purchased by the business for resale are called________ |
| A. | Purchase |
| B. | Sale |
| C. | Liabilit |
| Answer» B. Sale | |
| 398. |
The maximum amount beyond which a company is not allowed to raise funds, by issue of share is |
| A. | Issued Capital ; |
| B. | Reserve Capital ; |
| C. | Subscribed Capital ; |
| D. | Authorised Capital |
| Answer» E. | |
| 399. |
Purchase A/c will have- |
| A. | No balance at all ; |
| B. | Debit balance ; |
| C. | Credit balance ; |
| D. | Debit or Credit |
| Answer» C. Credit balance ; | |
| 400. |
The Accounting Standards Board was established in India by |
| A. | Ministry of Corporate Affairs |
| B. | Institute of Chartered Accountant of India |
| C. | International Accounting Standards Committee |
| D. | none |
| Answer» C. International Accounting Standards Committee | |