MCQOPTIONS
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MCQOPTIONS
This section includes 60 Mcqs, each offering curated multiple-choice questions to sharpen your Bachelor of Accounting and Finance (BAF) knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
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 | |
| 2. |
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 | |
| 3. |
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 | |
| 4. |
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 | |
| 5. |
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. | |
| 6. |
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 | |
| 7. |
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 | |
| 8. |
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. | |
| 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. |
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 | |
| 11. |
'Pooling of interest' is a method of_____________________ |
| A. | accounting of amalgamtion |
| B. | charging depreciation |
| C. | account of absorption |
| D. | calculation of purchase consideration |
| Answer» B. charging depreciation | |
| 12. |
The proceeds of assets not specifically pledged & nthe surplus of the assets specifically pledged is first available for_________________ |
| A. | legal charges, liquidators remuneration & expenses |
| B. | unsecured creditors |
| C. | preferential creditors |
| D. | preferential shareholders |
| Answer» B. unsecured creditors | |
| 13. |
rights/ Duties of partners are governed by_______________ |
| A. | article of association |
| B. | llp agreement |
| C. | partnership deed |
| D. | byelaws |
| Answer» C. partnership deed | |
| 14. |
The Balance in exchange difference on transaction of export sale is transferred to _________________ |
| A. | trading a/c |
| B. | debtors |
| C. | sales a/c |
| D. | profit & loss a/c |
| Answer» E. | |
| 15. |
If a part of the issue of share or debenrues is underwritten, it is termed as__________________- |
| A. | firm underwriting |
| B. | complete underwriting |
| C. | sole underwriting |
| D. | partial underwriting |
| Answer» E. | |
| 16. |
If the remuneration to liquidator is payable as a percentage of collection_______________ |
| A. | exclude opening cash & bank balance |
| B. | exclude opening cash & bank balance |
| C. | includes opening cash & bank balance |
| D. | exclude both opening & closing cash & bank balance |
| Answer» B. exclude opening cash & bank balance | |
| 17. |
On Amalgamation, Profit & Loss A/c (Dr.) balance of the vendor company is closed by___________ |
| A. | debit to realisation |
| B. | debit to profit & loss a/c |
| C. | debit to equity shareholders a/c |
| D. | credit to equity shareholders a/c |
| Answer» D. credit to equity shareholders a/c | |
| 18. |
A Limited Liability Partnership has ________ |
| A. | no perpetual succession |
| B. | perpetual succession |
| C. | no specific period |
| D. | specified period of life |
| Answer» C. no specific period | |
| 19. |
The depreciation of Fixed Assets is converted at rate________________ |
| A. | date of purchase |
| B. | balance sheet |
| C. | average during year |
| D. | on the date of balance sheet |
| Answer» B. balance sheet | |
| 20. |
LLP can be dissolved by the order of____________ |
| A. | sessions court |
| B. | district court |
| C. | nclt |
| D. | high court |
| Answer» D. high court | |
| 21. |
If the whole of the issue of shares or debentures is underwritten it is known as_______________________ |
| A. | frim underwriting |
| B. | partial underwriting |
| C. | sole underwriting |
| D. | complete or fully underwriting |
| Answer» E. | |
| 22. |
Accrued Holiday remuneration becoming payable to any workman is treated as ________________________ |
| A. | unsecured creditors |
| B. | over-riding preferential creditors |
| C. | preferential creditors |
| D. | secured creditors |
| Answer» C. preferential creditors | |
| 23. |
According to AS 14, Transferor company means the company__________ |
| A. | which is amalgamated into another company |
| B. | which is any one old company into new comapny |
| C. | which is newly formed |
| D. | into which a company is amalgamated |
| Answer» B. which is any one old company into new comapny | |
| 24. |
The Balance in receivable as on the date of Balance sheet is converted at rate______________ |
| A. | on the date of balance sheet |
| B. | on the date of subsequent |
| C. | on the date of sale goods |
| D. | on the date of first recovery |
| Answer» B. on the date of subsequent | |
| 25. |
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.80 |
| C. | rs.90 |
| D. | rs.100 |
| Answer» B. rs.80 | |
| 26. |
Amount of retirement benefits of employees exceeding Rs.20,000 per employees is treated as____________ |
| A. | over-riding preferential creditors |
| B. | preferential creditors |
| C. | unsecured creditors |
| D. | secured creditors |
| Answer» C. unsecured creditors | |
| 27. |
Certificate of incorporation of LLP is issued by_______________ |
| A. | registrar of co-operative societies |
| B. | registrar of companies |
| C. | registrar of universities |
| D. | registrar of firms |
| Answer» C. registrar of universities | |
| 28. |
Accounting for Absorption is governed by______________ |
| A. | as 14 |
| B. | as 11 |
| C. | as 13 |
| D. | as 1 |
| Answer» B. as 11 | |
| 29. |
R LTD. Issued a debenture of Rs.100 each at Rs.90. The underwriting commission will be paid on___________ |
| A. | rs.90 |
| B. | rs.95 |
| C. | rs.100 |
| D. | rs.105 |
| Answer» B. rs.95 | |
| 30. |
In the case of members voluntary winding up liquidator is appointed by _____________ |
| A. | the company in general meeting |
| B. | the registrar of companies |
| C. | the central government |
| D. | the board of directors |
| Answer» B. the registrar of companies | |
| 31. |
A feature which is common in all cases or merger__________________- |
| A. | purchase of one comapany by another company |
| B. | liquidation of at least two companies |
| C. | liquidation at least one existing company & formation of another company |
| D. | formation of at least one new company |
| Answer» B. liquidation of at least two companies | |
| 32. |
Conversion of currency is covered in AS______ |
| A. | 11 |
| B. | 9 |
| C. | 14 |
| D. | 13 |
| Answer» B. 9 | |
| 33. |
Accounts of LLP are to be audited by _____________ |
| A. | cost accountant |
| B. | master of commerce |
| C. | chartered accountant |
| D. | company secretary |
| Answer» D. company secretary | |
| 34. |
The underwriting commission in the case of debentures as per Companies Act, should not exceed_________ |
| A. | 3% of the price at which the debentures are issued |
| B. | 2.5% of the price at which debenture are issued |
| C. | 5% of the price at which debentures are issued |
| D. | 4% of the price at which debentures are issued |
| Answer» C. 5% of the price at which debentures are issued | |
| 35. |
Non-Monetary Items which are carried in terms of historical cost determinated in a foreign currency should be reporte using exchange rate at the date of _____ |
| A. | balance sheet |
| B. | settlement |
| C. | transaction |
| D. | profit & loss a/c |
| Answer» D. profit & loss a/c | |
| 36. |
25. The proceeds of assets not specifically pledged & nthe surplus of the assets specifically pledged is first available for_________________ |
| A. | preferential shareholders |
| B. | legal charges, liquidators remuneration & expenses |
| C. | unsecured creditors |
| D. | preferential creditors |
| Answer» C. unsecured creditors | |
| 37. |
24. Fictitious Assets are to be transferred to ___________________ |
| A. | internal reconstruction |
| B. | share capital |
| C. | securities premium |
| D. | capital reserve |
| Answer» B. share capital | |
| 38. |
23. 'Pooling of interest' is a method of_____________________ |
| A. | charging depreciation |
| B. | account of absorption |
| C. | calculation of purchase consideration |
| D. | accounting of amalgamtion |
| Answer» E. | |
| 39. |
22. In case of Buy Back at a discount the amount of discount is transferred to _________________ |
| A. | capital reserve a/c |
| B. | general reserve a/c |
| C. | capital redemption reserve a/c |
| D. | securities premium a/c |
| Answer» B. general reserve a/c | |
| 40. |
21. If a part of the issue of share or debenrues is underwritten, it is termed as__________________- |
| A. | sole underwriting |
| B. | firm underwriting |
| C. | complete underwriting |
| D. | partial underwriting |
| Answer» E. | |
| 41. |
20. If the remuneration to liquidator is payable as a percentage of collection_______________ |
| A. | exclude opening cash & bank balance |
| B. | exclude opening cash & bank balance |
| C. | includes opening cash & bank balance |
| D. | exclude both opening & closing cash & bank balance |
| Answer» B. exclude opening cash & bank balance | |
| 42. |
18. On Amalgamation, Profit & Loss A/c (Dr.) balance of the vendor company is closed by___________ |
| A. | debit to profit & loss a/c |
| B. | debit to equity shareholders a/c |
| C. | credit to equity shareholders a/c |
| D. | debit to realisation |
| Answer» C. credit to equity shareholders a/c | |
| 43. |
19. The existing 1,000 shares of Rs. 100 each are altered to 10,000 shares of Rs.10 each. This is known as__________________ |
| A. | sub-division |
| B. | surrender |
| C. | conversion in stock |
| D. | consolidation |
| Answer» B. surrender | |
| 44. |
17. Buy Back must expenses may be treated as_________________ |
| A. | deffered revenue expenses |
| B. | revenue expenses |
| C. | revenue or deffered revenue expenses |
| D. | capital expenses |
| Answer» D. capital expenses | |
| 45. |
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. | |
| 46. |
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 | |
| 47. |
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 | |
| 48. |
12. Buy Back must be completed within_______________ |
| A. | 3 months |
| B. | 6 months |
| C. | 2 months |
| D. | 12 months |
| Answer» E. | |
| 49. |
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 | |
| 50. |
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 | |