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.
| 51. |
Share premium account should be shown in the Balance sheet under |
| A. | Paid-up capital |
| B. | Subscribed capital |
| C. | Reserves & surplus |
| D. | Reserved capital |
| Answer» D. Reserved capital | |
| 52. |
Amount of share premium may be utilized for |
| A. | Payment of dividend |
| B. | Writing of preliminary expenses |
| C. | Routine expenses |
| D. | Purchase of fixed assets |
| Answer» C. Routine expenses | |
| 53. |
Shares can be issued at discount under section |
| A. | 76 |
| B. | 75 |
| C. | 79 |
| D. | 89 |
| Answer» D. 89 | |
| 54. |
Shares can be issued at discount only after |
| A. | 2 years of the commencement of the business |
| B. | 1 year of the commencement of the business |
| C. | 3 years of the commencement of the business |
| D. | 5 years of the commencement of the business |
| Answer» C. 3 years of the commencement of the business | |
| 55. |
Shares can be issued at premium, under section |
| A. | 76 |
| B. | 75 |
| C. | 78 |
| D. | 79 |
| Answer» D. 79 | |
| 56. |
Interest on calls paid in advance, according to Table A, should not exceed |
| A. | 6% |
| B. | 5% |
| C. | 10% |
| D. | 14% |
| Answer» B. 5% | |
| 57. |
A company can accept calls in advance from its shareholders under section |
| A. | 82 |
| B. | 79 |
| C. | 92 |
| D. | 78 |
| Answer» D. 78 | |
| 58. |
For the for festure of shares, the auditor should check that it is permitted |
| A. | by Memorandum of Association |
| B. | by articles of association |
| C. | under Companies Act, 1956 |
| D. | None of the above |
| Answer» C. under Companies Act, 1956 | |
| 59. |
With regard to issue of share warrants to the bearers, the auditor should see that is it |
| A. | Permitted by Memorandum of Association |
| B. | Sanctioned by the Central Government |
| C. | Permitted by the Board of Directors |
| D. | None of the above |
| Answer» C. Permitted by the Board of Directors | |
| 60. |
Premium received on issue of shares, later forfeited, should be transferred to |
| A. | Capital reserve |
| B. | Shares forfeited Account |
| C. | Capital Account |
| D. | None of the above |
| Answer» E. | |
| 61. |
With regard to issue of share certificates, the auditor should refer to section |
| A. | 110 |
| B. | 113 |
| C. | 114 |
| D. | 123 |
| Answer» C. 114 | |
| 62. |
Increase in share capital is permitted by |
| A. | Memorandum of Association |
| B. | Articles of association |
| C. | Court |
| D. | Companies Act, 1956 |
| Answer» C. Court | |
| 63. |
Outstanding expenses should be verified with the help of |
| A. | Cash book |
| B. | Balance book |
| C. | Journal proper |
| D. | None of the above |
| Answer» D. None of the above | |
| 64. |
Divisible profit should not include |
| A. | Interest on capital |
| B. | Capital |
| C. | Depreciation |
| D. | None of the above |
| Answer» E. | |
| 65. |
Capital profit imply profit earned |
| A. | Through business transaction |
| B. | From capital |
| C. | From sale of fixed assets |
| D. | From sale of current assets |
| Answer» D. From sale of current assets | |
| 66. |
Book debts should be verified with the help of |
| A. | Balance sheet |
| B. | Amount received from Debtors |
| C. | Debtors schedule |
| D. | Certificate from the management |
| Answer» D. Certificate from the management | |
| 67. |
Dividend can not be paid out of |
| A. | Capital profit |
| B. | Capital receipts |
| C. | Revenue receipts |
| D. | None of the above |
| Answer» C. Revenue receipts | |
| 68. |
A company auditor should see that the dividend should be paid |
| A. | After charging depreciation |
| B. | Without charging depreciation |
| C. | Out of capital |
| D. | None of the above |
| Answer» B. Without charging depreciation | |
| 69. |
Capital profits |
| A. | Can be paid by way of dividends |
| B. | Cannot paid by way of dividends |
| C. | Can be paid by way of dividend under certain conditions |
| D. | None of the above |
| Answer» D. None of the above | |
| 70. |
Internal audit is considered as a service to ------------------- |
| A. | Share holders |
| B. | Board of directories |
| C. | Management |
| D. | none |
| Answer» D. none | |
| 71. |
In his report, the auditor gives his |
| A. | Judgment |
| B. | Opinion |
| C. | Guarantee to correctness of accounts |
| D. | True state of affairs |
| Answer» C. Guarantee to correctness of accounts | |
| 72. |
An auditor can be held liable under companies Act 1949 for |
| A. | Negligence |
| B. | Criminal offence |
| C. | Professional misconduct |
| D. | Breach of contract |
| Answer» D. Breach of contract | |
| 73. |
Investigation of books of accounts and records is : |
| A. | Not legally compulsory |
| B. | Compulsory |
| C. | Compulsory as per companies act |
| D. | Compulsory as Income Tax Act |
| Answer» B. Compulsory | |
| 74. |
Examination of accounting records undertaken for a special purpose is called |
| A. | Auditing |
| B. | Internal check |
| C. | Investigation |
| D. | Internal control |
| Answer» D. Internal control | |
| 75. |
Inflation of closing stock results is :- |
| A. | Inflation of loss |
| B. | Deflation of loss |
| C. | Inflation of profit |
| D. | Deflation of profit |
| Answer» D. Deflation of profit | |
| 76. |
The prime importance of investigation on behalf of an individual or firm intending to purchase an existing business is to |
| A. | Ascertain value of asset |
| B. | Ascertain the earning capacity of the concern |
| C. | Estimation of value of good will |
| D. | Extend of liabilities |
| Answer» C. Estimation of value of good will | |
| 77. |
Investments in hand should be verified with the help of |
| A. | Schedule of investments |
| B. | Balance sheet |
| C. | Inspection of securities |
| D. | Certificate from the bank |
| Answer» D. Certificate from the bank | |
| 78. |
Inflation of profit is possible due to : |
| A. | Overvaluation of closing stock |
| B. | Overstating purchase |
| C. | Overstating opening stock |
| D. | Overstating expenses |
| Answer» B. Overstating purchase | |
| 79. |
The main purpose of management audit is to |
| A. | Review the management operations |
| B. | Check arithmetical accuracy |
| C. | Prevent travel |
| D. | Prevent error |
| Answer» B. Check arithmetical accuracy | |
| 80. |
Charging excessive provision for depreciation results in |
| A. | Less profit |
| B. | More profit |
| C. | No change in profit |
| D. | No change in loss |
| Answer» B. More profit | |
| 81. |
To forfeit shares --------------- days notice to the share holder s given |
| A. | 40 |
| B. | 14 |
| C. | 24 |
| D. | none |
| Answer» C. 24 | |
| 82. |
Provisions regarding bonus issue should be given in -------------------- document |
| A. | Memorandum of association |
| B. | Articles of association |
| C. | Prospectus |
| D. | none |
| Answer» C. Prospectus | |
| 83. |
Falsification of accounts is undertaken by |
| A. | Auditors |
| B. | Clerks |
| C. | Accountants |
| D. | Responsible officials |
| Answer» E. | |
| 84. |
Financial statements are prepared by |
| A. | The accountant |
| B. | The auditor |
| C. | Managing director |
| D. | none |
| Answer» B. The auditor | |
| 85. |
The scope of work of internal audit is decided by the |
| A. | Share holders |
| B. | Management |
| C. | To improve financial control |
| D. | All of the above |
| Answer» E. | |
| 86. |
Management audit is |
| A. | Compulsory |
| B. | Not compulsory |
| C. | Compulsory under Income Tax Act |
| D. | Compulsory under Indian Contract Act. |
| Answer» C. Compulsory under Income Tax Act | |
| 87. |
Special resolution means ------------------- |
| A. | 1/3 majority |
| B. | 2/3 majority |
| C. | majority |
| D. | none |
| Answer» C. majority | |
| 88. |
Ordinary resolution means ----------------------- |
| A. | 1/3 majority |
| B. | 2/3 majority |
| C. | More than 1/2 |
| D. | none |
| Answer» D. none | |
| 89. |
Capitalization of reserves means ------------------------- |
| A. | Creation of provision |
| B. | Declaration of dividend |
| C. | Issue of bonus shares |
| D. | none |
| Answer» D. none | |
| 90. |
Cost auditor submits reports to the --------------- |
| A. | Share holder |
| B. | Board of directors |
| C. | Employees |
| D. | none |
| Answer» C. Employees | |
| 91. |
The chartered Accountants Act is in ----------------- |
| A. | 1956 |
| B. | 1959 |
| C. | 1949 |
| D. | none |
| Answer» C. 1949 | |
| 92. |
Auditor is an --------------- of a shareholder |
| A. | Owner |
| B. | Agent |
| C. | Employer |
| D. | none |
| Answer» C. Employer | |
| 93. |
Section 633 of the companies Act deals with |
| A. | Liability of auditor |
| B. | Relief to the auditor |
| C. | Punishment to the auditor |
| D. | none |
| Answer» C. Punishment to the auditor | |
| 94. |
Cost audit means audit of --------------- records |
| A. | Financial |
| B. | Cost |
| C. | Tax |
| D. | none |
| Answer» C. Tax | |
| 95. |
Financial auditor submits reports to the ---------------- |
| A. | Shareholder |
| B. | Board of director |
| C. | Employees |
| D. | none |
| Answer» B. Board of director | |
| 96. |
--------------- audit is forward looking - |
| A. | Financial |
| B. | Cost |
| C. | Tax |
| D. | none |
| Answer» C. Tax | |
| 97. |
Auditor finds that there is change in the method of valuation of stock whether he should |
| A. | Allow it |
| B. | Disallow it |
| C. | Allow it with a note to this effect |
| D. | none |
| Answer» D. none | |
| 98. |
Cost auditor of a company is ----------- |
| A. | Chartered Accountant |
| B. | Cost Accountant |
| C. | Tax Accountant |
| D. | none |
| Answer» C. Tax Accountant | |
| 99. |
Auditor has got no lien on ------------- |
| A. | Audit Note Nook |
| B. | Audit working papers |
| C. | Books to Accounts of Client |
| D. | none |
| Answer» D. none | |
| 100. |
Statutory Report should be sent to registrar before ------------------- days of statutory meeting |
| A. | 30 days |
| B. | 14 days |
| C. | 21 days |
| D. | none |
| Answer» D. none | |