MCQOPTIONS
Saved Bookmarks
MCQOPTIONS
This section includes 155 Mcqs, each offering curated multiple-choice questions to sharpen your Bachelor of Commerce (B Com) knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
Propriety is normally undertaken in case of |
| A. | Joint stock company |
| B. | Government company |
| C. | Statutory corporation |
| D. | Govt. departments |
| Answer» E. | |
| 2. |
Auditing is luxury for a |
| A. | Joint stock company |
| B. | Partnership firm |
| C. | Small shop-keeper |
| D. | Government company |
| Answer» D. Government company | |
| 3. |
Main object of auditing is |
| A. | Detection of errors |
| B. | To find out whether P&L a/c & B/S show true and fair state affairs |
| C. | Detection of frauds |
| D. | Detection and prevention of frauds and errors. |
| Answer» C. Detection of frauds | |
| 4. |
Interim audit refers to |
| A. | Examination of accounts continuously |
| B. | Examination of accounts intermittently |
| C. | Audit work to find out and check interim profits of a company |
| D. | Carrying on audit for bonus purposes at the end of the year |
| Answer» D. Carrying on audit for bonus purposes at the end of the year | |
| 5. |
Joint audit implies |
| A. | Audit of two concerns together |
| B. | Audit of joint stock companies |
| C. | Audit of joint sector companies |
| D. | Audit by two firms of C.A |
| Answer» E. | |
| 6. |
Systems audit implies |
| A. | Systematic examination of accounts |
| B. | Audit undertaken to improve auditing systems |
| C. | Enquiring accounting and control systems |
| D. | Checking the performance of management |
| Answer» D. Checking the performance of management | |
| 7. |
Internal audit means |
| A. | Audit undertaken to ascertain truth and fairness of state of affairs |
| B. | Audit undertaken internally to evaluate management functions |
| C. | Audit undertaken by employees of the organization to check financial irregularities |
| D. | Audit by independent auditor to improve internal affairs |
| Answer» D. Audit by independent auditor to improve internal affairs | |
| 8. |
Internal audit is |
| A. | Compulsory for a company with paid-up capital of Rs. 25 lakh and above |
| B. | Voluntary for a company |
| C. | Not necessary for a company |
| D. | Necessary for a company |
| Answer» C. Not necessary for a company | |
| 9. |
Bonus shares are issued to ---------------- |
| A. | New members |
| B. | Existing share holders |
| C. | Employees |
| D. | none |
| Answer» C. Employees | |
| 10. |
Share Premium Account should be shown in Balance sheet under |
| A. | Paid-up capital |
| B. | Subscribed capital |
| C. | Reserves and surpluses |
| D. | none |
| Answer» D. none | |
| 11. |
A company can issue bonus shares if authorized by |
| A. | Memorandum of Association |
| B. | Articles of Association |
| C. | Companies Act-1956 |
| D. | none |
| Answer» C. Companies Act-1956 | |
| 12. |
A company can issue redeemable preference shares if authorized by |
| A. | Memorandum of Association |
| B. | Articles of Association |
| C. | Companies Act-1956 |
| D. | none |
| Answer» C. Companies Act-1956 | |
| 13. |
Interest on calls paid in advance according to table A, should not exceed |
| A. | 6% |
| B. | 5% |
| C. | 10% |
| D. | none |
| Answer» B. 5% | |
| 14. |
For the forfeiture of shares, the auditor should check that it is permitted |
| A. | Memorandum of Association |
| B. | By articles of association |
| C. | Under Companies Act 1956 |
| D. | none |
| Answer» C. Under Companies Act 1956 | |
| 15. |
Preliminary expanses not written off are treated as |
| A. | Fixed assets |
| B. | Intangible assets |
| C. | Fictitious assets |
| D. | none |
| Answer» D. none | |
| 16. |
Profits on reissue of forfeited Shares should be transferred to |
| A. | Share forfeited Account |
| B. | Capital Reserve Account |
| C. | Profit and Loss Account |
| D. | none |
| Answer» C. Profit and Loss Account | |
| 17. |
While checking the allotment of shares, the auditor should see that it is made within |
| A. | 100 days of issue of prospectus |
| B. | 120 days of issue of prospectus |
| C. | 150 days of issue of prospectus |
| D. | none |
| Answer» C. 150 days of issue of prospectus | |
| 18. |
Which of the following percentage of nominal amount of shares should be received with application |
| A. | 10 |
| B. | 15 |
| C. | 5 |
| D. | none |
| Answer» D. none | |
| 19. |
Accounting standards are prepared by |
| A. | SEBI |
| B. | RBI |
| C. | ICAI |
| D. | ITA |
| Answer» D. ITA | |
| 20. |
Share premium Account is shown on the _______________ |
| A. | Asset side of Balance sheet |
| B. | Liability side of Balance sheet |
| C. | Credit side of profit and loss Account |
| D. | none |
| Answer» C. Credit side of profit and loss Account | |
| 21. |
Issue of shares at discount should be sanctioned by the ________________ |
| A. | Board of directors |
| B. | Share holders |
| C. | Company Law Board |
| D. | none |
| Answer» D. none | |
| 22. |
Which of the following is referred to confirm the allotment of shares to the vendor |
| A. | Cash book |
| B. | Pass book |
| C. | Director s minute |
| D. | none |
| Answer» D. none | |
| 23. |
Audit conducted as per the provisions of law is _____________ |
| A. | Statutory Audit |
| B. | Continuous Audit |
| C. | Social Audit |
| D. | none |
| Answer» B. Continuous Audit | |
| 24. |
Discount on issue of shares not written of is shown separately in Balance sheet under the head_____________ |
| A. | Miscellaneous expenditure |
| B. | Preliminary expanses |
| C. | Current assets |
| D. | none |
| Answer» B. Preliminary expanses | |
| 25. |
Which among the following is not a function of the author |
| A. | Checking errors and frauds |
| B. | Vouching with original documents |
| C. | Preparing final Accounts |
| D. | none |
| Answer» D. none | |
| 26. |
__________________section of Companies Act deals with share Capital |
| A. | 69 |
| B. | 60 |
| C. | 50 |
| D. | none |
| Answer» B. 60 | |
| 27. |
The scope of auditing does not cover. |
| A. | Vouching |
| B. | Checking arithmetical accuracy |
| C. | Ledger posting |
| D. | none |
| Answer» D. none | |
| 28. |
Internal audit is conducted |
| A. | Periodically |
| B. | Throughout the year |
| C. | Once in a year |
| D. | none |
| Answer» C. Once in a year | |
| 29. |
The maximum number of audit assignment an auditor can accept is limited to -------------- companies |
| A. | 10 |
| B. | 15 |
| C. | 20 |
| D. | none |
| Answer» D. none | |
| 30. |
The amount of application money received shall be deposited in a scheduled bank until________ |
| A. | Annual general meeting |
| B. | General meeting |
| C. | Certificate to commencement obtained |
| D. | none |
| Answer» D. none | |
| 31. |
The auditors are liable under |
| A. | Companies Act Only |
| B. | Income Tax Act Only |
| C. | All above |
| D. | none |
| Answer» D. none | |
| 32. |
Partial auditing is usually done by |
| A. | Sole trading concern |
| B. | Joint stock company |
| C. | Govt. department |
| D. | none |
| Answer» B. Joint stock company | |
| 33. |
Amount received as premium can be used to ___________ |
| A. | Purchase Assets |
| B. | Pay of liabilities |
| C. | Issue bonus shares |
| D. | none |
| Answer» D. none | |
| 34. |
Auditors can be appointed by -------------- when the shareholders fail to appoint auditors at the general meeting |
| A. | Board of directors |
| B. | Central government |
| C. | Company Low board |
| D. | none |
| Answer» C. Company Low board | |
| 35. |
The examinations of financial transactions with supporting evidences is called |
| A. | Verification |
| B. | Vouching |
| C. | Auditing |
| D. | none |
| Answer» C. Auditing | |
| 36. |
Sales day book is used for recording |
| A. | Credit sales |
| B. | Cash sales |
| C. | All sales |
| D. | none |
| Answer» B. Cash sales | |
| 37. |
The term inventories stands for |
| A. | Raw materials |
| B. | Work in progress |
| C. | All of these |
| D. | none |
| Answer» D. none | |
| 38. |
Which among the following is an example of intangible asset? |
| A. | Goodwill |
| B. | Patents |
| C. | All of these |
| D. | none |
| Answer» D. none | |
| 39. |
Which of the following is not an item current asset? |
| A. | Stock |
| B. | Sundry debtors |
| C. | Furniture |
| D. | none |
| Answer» D. none | |
| 40. |
Vouching is an examination of ----------- to ascertain the accuracy and authenticity of transactions in the book of accounts |
| A. | Audit files |
| B. | Audit note book |
| C. | Documents |
| D. | none |
| Answer» D. none | |
| 41. |
Investigation is required when |
| A. | Fraud is suspected in business |
| B. | On acquisition of running business |
| C. | All of them |
| D. | none |
| Answer» D. none | |
| 42. |
Which among the following is not a right of company auditors |
| A. | Right to access the book accounts |
| B. | Right to seek explanations |
| C. | Right to lies on books of accounts |
| D. | none |
| Answer» D. none | |
| 43. |
Investigation is conducted |
| A. | Regularly |
| B. | Quarterly |
| C. | As and when required |
| D. | none |
| Answer» D. none | |
| 44. |
Test checking is done when there is an effective system of -------------- |
| A. | Internal control |
| B. | Internal audit |
| C. | Internal check |
| D. | none |
| Answer» D. none | |
| 45. |
Current audit file consists of |
| A. | Matters of future importance |
| B. | Matters relations to post years |
| C. | Matters relating to the year of audit |
| D. | none |
| Answer» D. none | |
| 46. |
Test checking means |
| A. | Checking of all transactions |
| B. | Checking of half of the transactions |
| C. | Checking of selected items |
| D. | none |
| Answer» D. none | |
| 47. |
Audit working papers are -------------------------- |
| A. | Important information about audit |
| B. | Appointment letters regarding audit |
| C. | Letter of notice |
| D. | none |
| Answer» B. Appointment letters regarding audit | |
| 48. |
A company can issue Redeemable Preference shares, if authorized by |
| A. | Memorandum of association |
| B. | Articles of association |
| C. | Companies Act, 1956 |
| D. | None of the above |
| Answer» C. Companies Act, 1956 | |
| 49. |
Treating revenue expenditure as capital expenditure is an example of error of ------------------- |
| A. | Principle |
| B. | Compensating |
| C. | Clerical |
| D. | none |
| Answer» B. Compensating | |
| 50. |
Auditor should see that amount received for premium on issue of shares should be shown in |
| A. | Subscribed capital |
| B. | Capital Reserve Account |
| C. | Share Premium account |
| D. | Paid- up capital account |
| Answer» D. Paid- up capital account | |