McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Cost Accounting .
| 751. |
Dissolution of partnership between all the partners of a firm is called: |
| A. | Dissolution of partnership |
| B. | Dissolution of partners |
| C. | Dissolution of the firm |
| D. | Reconstitution of firm |
| Answer» C. Dissolution of the firm | |
| 752. |
If all partners, or all but one partner, of the firm are declared insolvent: |
| A. | Firm is automatically dissolved |
| B. | Firm becomes illegal association |
| C. | Firm is also declared insolvent |
| D. | Firm becomes illegal entity |
| Answer» A. Firm is automatically dissolved | |
| 753. |
A firm is compulsorily dissolved on the: |
| A. | Death of a partner |
| B. | Adjudication of a partner as an insolvent |
| C. | Expiry of a fixed period for which the firm was constituted |
| D. | Business of the firm becoming illegal due to happening of an event |
| Answer» D. Business of the firm becoming illegal due to happening of an event | |
| 754. |
If any event happens which makes it unlawful for the business of the firm to be carried on or for the partners to carry it on it partnership, then |
| A. | Firm is compulsorily dissolved |
| B. | Partnership is reconstituted |
| C. | Firm becomes an illegal association |
| D. | Firm is declared insolvent |
| Answer» A. Firm is compulsorily dissolved | |
| 755. |
A partnership may be dissolved by any partner by giving a notice to other partners in case of: |
| A. | Partnership at will |
| B. | Partnership for a fixed duration |
| C. | Particular partnership |
| D. | Limited liability partnership |
| Answer» A. Partnership at will | |
| 756. |
Which of the following do not constitute a ground- for dissolution by Court? |
| A. | Misconduct by partner |
| B. | Transfer of interest by partner |
| C. | Just and equitable grounds |
| D. | Insolvency of a partner |
| Answer» B. Transfer of interest by partner | |
| 757. |
Upon dissolution of firm, losses, including deficiencies of capital, shall be paid first: |
| A. | Out of Profits |
| B. | Out of Capital |
| C. | By the partners in their profit sharing ratio |
| D. | By the partners equally |
| Answer» A. Out of Profits | |
| 758. |
Upon dissolution of firm, losses, including deficiencies of Capital, shall be paid first out of Profits and then out of Capital and finally — |
| A. | Out of Profits |
| B. | Out of Capital |
| C. | By the partners individually in their profit sharing ratio |
| D. | By the partners equally |
| Answer» C. By the partners individually in their profit sharing ratio | |
| 759. |
In settling the account after dissolution, the firm's assets shall be first applied in: |
| A. | Payment of Debts of the firm to third parties |
| B. | Payment of partner's Loan |
| C. | Payment of partner's Capital |
| D. | Distribution to partners in their Profit Sharing Ratio |
| Answer» A. Payment of Debts of the firm to third parties | |
| 760. |
Upon dissolution, the firm's assets after settlement of the debts of the firm to third parties and partners' Loans, shall then be applied in — |
| A. | Payment of debts of the firm |
| B. | Advances of each partner |
| C. | Payment of partner's capital |
| D. | Distribution to partners in their Profit Sharing Ratio |
| Answer» C. Payment of partner's capital | |
| 761. |
Where a partnership contract is rescinded on grounds of fraud or misrepresentation, the party entitled to rescind, is also entitled to rank, in respect of any payment made by him for the firm's debts as a: |
| A. | Creditor |
| B. | Debtor |
| C. | Lender |
| D. | Guarantor |
| Answer» A. Creditor | |
| 762. |
After a firm is dissolved, every partner or his representative may restrain any other partner or his representative from carrying on similar business in the firm's name or by using firm's property for own benefit, until: |
| A. | The affairs of the firm are completely wound up |
| B. | Dissolution of the firm |
| C. | Date of public notice of dissolution |
| D. | Date of signing of dissolution deed |
| Answer» A. The affairs of the firm are completely wound up | |
| 763. |
When goodwill of the firm is sold upon dissolution, and a partner carries on a competing business, which of the following is permissible? |
| A. | Use of firm's name |
| B. | Holding out as carrying on the business of the firm. |
| C. | Soliciting the custom of the firm's customers/suppliers etc. |
| D. | None of the above |
| Answer» D. None of the above | |
| 764. |
Public notice in case of a firm is not required in case of: |
| A. | Admission of a partner |
| B. | Retirement of a partner |
| C. | Expulsion of a partner |
| D. | Dissolution of the firm |
| Answer» A. Admission of a partner | |
| 765. |
Public notice is required to be given in the case |
| A. | admission of minor |
| B. | exercising option to continue or not, on attainment of majority by the minor |
| C. | death of a partner |
| D. | retirement by sleeping partner |
| Answer» B. exercising option to continue or not, on attainment of majority by the minor | |
| 766. |
When goodwill of the firm, the selling partners may agree with the buyer that they will not carry on similar business, within a specified period or within specified local limits. Such agreement in restraint of trade shall be : |
| A. | Valid, if the restrictions imposed are reasonable |
| B. | Valid (whether restrictions are reasonable or not) |
| C. | Void |
| D. | Voidable |
| Answer» A. Valid, if the restrictions imposed are reasonable | |
| 767. |
Public Notice under the Partnership Act, is given in the following manner: |
| A. | Serving a copy of the Notice to the Registrar of firms |
| B. | Publishing the Notice in the Official Gazette |
| C. | Publishing the Notice in one vernacular newspaper circulating in the district where the firm's principal place of business is situated |
| D. | All of the above |
| Answer» D. All of the above | |
| 768. |
Identify the incorrect statements: (1) When a firm is constituted for a fixed duration it cannot be dissolved before the expiry of that duration. (2) A partnership at will can be dissolved by the wish of even a single partner. (3) When a partner of a firm becomes lunatic, the firm dissolves automatically. (4) Even after dissolution, partners of a firm continue to be liable for acts of the firm until the affairs of the firm are finally wound up. Code: |
| A. | 1,2 and 3 |
| B. | 1,3 and 4 |
| C. | 1,2 and 4 |
| D. | 2, 3 and 4 |
| Answer» B. 1,3 and 4 | |
| 769. |
A, B and C are partners of an unregistered firm. D owns this firm ` 1000 on a contract. The firm filed a suit against D the suit is dismissed for non-registration of the firm. The firm is registered later on. In this case which one of the following statements is MOST appropriate. |
| A. | The firm can successfully bring the suit against D |
| B. | Registration must have been effected by the firm, before a suit is filed in the court |
| C. | The firm cannot file suit against D |
| D. | None of the above |
| Answer» A. The firm can successfully bring the suit against D | |
| 770. |
X, Y and Z are partners in a firm. X, without the authority of Y and Z buys certain shares in his name out of partnership money. Will 'shares' constitute partnership property? |
| A. | Yes |
| B. | No |
| C. | Can't say |
| D. | Depends on the facts of the case |
| Answer» A. Yes | |
| 771. |
A, B and C are partners. C is a sleeping partner who is not known to the creditors. C retires without giving public notice of his retirement. Is C liable for subsequent debts incurred by A and B. |
| A. | No, since he is a sleeping partner |
| B. | Yes, since public notice of retirement must be given |
| C. | Difficult to say |
| D. | None of the above |
| Answer» A. No, since he is a sleeping partner | |
| 772. |
The Negotiable Instruments Act, 1881 applies to |
| A. | the whole of India |
| B. | the whole of India except the State of Jammu and Kashmir |
| C. | those states as notified by the Union Government from time to time in the Official Gazette |
| D. | the whole of India except the State of Jammu and Kashmir and the North- Eastern States |
| Answer» A. the whole of India | |
| 773. |
The Negotiable Instruments Act, 1881 came into force on |
| A. | 9th December, 1881 |
| B. | 19th December, 1881 |
| C. | 1st March, 1882 |
| D. | none of the above |
| Answer» C. 1st March, 1882 | |
| 774. |
The undertaking contained in a promissory note, to pay a certain sum of money is |
| A. | Conditional |
| B. | Unconditional |
| C. | may be conditional or unconditional depending upon the circumstances |
| D. | none of the above |
| Answer» B. Unconditional | |
| 775. |
A bill of exchange contains a/an |
| A. | unconditional undertaking |
| B. | unconditional order |
| C. | conditional undertaking |
| D. | conditional order |
| Answer» B. unconditional order | |
| 776. |
Cheque is a |
| A. | promissory note |
| B. | bill of exchange |
| C. | both (a) and (b) above |
| D. | None of the above |
| Answer» B. bill of exchange | |
| 777. |
The term 'Negotiable instrument' is defined in the Negotiable Instruments Act, 1881, under section |
| A. | 12 |
| B. | 13 |
| C. | 13A |
| D. | 2 |
| Answer» B. 13 | |
| 778. |
If an instrument may be construed either as a promissory note or bill of exchange, it is |
| A. | a valid instrument |
| B. | an ambiguous instrument |
| C. | a returnable instrument |
| D. | none of the above |
| Answer» B. an ambiguous instrument | |
| 779. |
Under section 16 of the Negotiable Instrument Act, 'endorsement in blank' of an instrument means |
| A. | where the endorser does not write anything on the instrument |
| B. | where the endorser signs his name only on the instrument |
| C. | where the endorser writes the name of the person who is directed to pay |
| D. | none of the above |
| Answer» B. where the endorser signs his name only on the instrument | |
| 780. |
'At sight' and ‗on presentation‘ under section 21 of the Negotiable Instrument Act, 1881, means |
| A. | on presentation |
| B. | on demand |
| C. | on coming into vision |
| D. | none of the above |
| Answer» B. on demand | |
| 781. |
If a minor draws, endorses, delivers or negotiates an instrument, such instrument binds |
| A. | all parties to the instrument including the minor |
| B. | only the minor and not other parties to the instrument |
| C. | all parties to the instrument except the minor |
| D. | none of the above |
| Answer» C. all parties to the instrument except the minor | |
| 782. |
In a promissory note, the amount of money payable |
| A. | must be certain |
| B. | may be certain or uncertain |
| C. | is usually uncertain |
| D. | none of the above |
| Answer» A. must be certain | |
| 783. |
Liability of drawer to compensate the holder in case of dishonour is primarily provided under |
| A. | Sec 30 |
| B. | Sec 29 |
| C. | Sec 31 |
| D. | Sec 32 |
| Answer» A. Sec 30 | |
| 784. |
Issuance of notice by the holder in case of dishonour is primarily provided in ………… |
| A. | Sec.93 |
| B. | Sec. 58 |
| C. | Sec. 138 |
| D. | Sec. 86 |
| Answer» A. Sec.93 | |
| 785. |
A cheque is crossed ………… when it bears across its face an addition of the name of a banker, either with or without the words "not negotiable". |
| A. | Specially |
| B. | General |
| C. | Restrictive |
| D. | None of the above |
| Answer» A. Specially | |
| 786. |
A note under section 99 of the Negotiable Instruments Act should contain among other things |
| A. | place of the notary |
| B. | charges of notary |
| C. | both (a) and (b) |
| D. | none of the above |
| Answer» B. charges of notary | |
| 787. |
A notice of protest under section 102 of the Negotiable Instruments Act, 1881 |
| A. | may be given by the notary public who makes the protest |
| B. | must always be given by the notary public who makes the protest |
| C. | must be given by the holder |
| D. | none of the above |
| Answer» A. may be given by the notary public who makes the protest | |
| 788. |
Under section 118 of the Negotiable Instruments Act, 1881, it is presumed, until the contrary is proved, that every transfer of a negotiable instrument was made |
| A. | after its maturity |
| B. | before its maturity |
| C. | at its maturity |
| D. | none of the above |
| Answer» B. before its maturity | |
| 789. |
The provisions of section 87 of the Negotiable Instruments Act, 1881, are subject to the provisions of |
| A. | sections 20,48, 68 and 125 of the Act |
| B. | sections 20, 49, 68 and 122 of the Act |
| C. | sections 20, 49, 86 and 125 of the Act |
| D. | sections 20, 49, 66 and 125 of the Act |
| Answer» C. sections 20, 49, 86 and 125 of the Act | |
| 790. |
Under section 97, of the Negotiable Instruments Act when the party to whom notice of dishonour is dispatched is dead, but the party despatching the notice is ignorant of his death, the notice is |
| A. | Sufficient |
| B. | not sufficient |
| C. | null and void and has no effect |
| D. | none of the above |
| Answer» A. Sufficient | |
| 791. |
Who among the following cannot cross a cheque? |
| A. | Drawer |
| B. | Holder |
| C. | Banker |
| D. | Foreigner |
| Answer» D. Foreigner | |
| 792. |
As per section 147 of the Negotiable Instruments Act, 1881, every offence punishable under the Act are |
| A. | Compoundable |
| B. | non-compoundable |
| C. | cognizable |
| D. | both (b) and (c) above |
| Answer» A. Compoundable | |
| 793. |
Under the provisions of section 143 of the Negotiable Instruments Act, 1881, all offences under the Act are to be tried by |
| A. | any Judicial Magistrate |
| B. | Judicial Magistrate of the First Class or by a Metropolitan Magistrate |
| C. | only a District Judge |
| D. | none of the above |
| Answer» B. Judicial Magistrate of the First Class or by a Metropolitan Magistrate | |
| 794. |
For what term of imprisonment an offender under section 138 of the Negotiable Instruments Act can be punished? |
| A. | for a term which may extend to two years |
| B. | for a term which may extend to one year |
| C. | for a term not exceeding three years |
| D. | none of the above |
| Answer» A. for a term which may extend to two years | |
| 795. |
The presumption as to the date of a negotiable instrument under section 118 is that, every negotiable instrument bearing a date was made or drawn |
| A. | prior to that date |
| B. | on such date |
| C. | may be on or prior to that date |
| D. | none of the above |
| Answer» B. on such date | |
| 796. |
Chapter XVII contain sections |
| A. | 138 to 142 |
| B. | 136 to 142 |
| C. | 112 to 124 |
| D. | none of the above |
| Answer» A. 138 to 142 | |
| 797. |
Who should make a complaint to a court for the purpose of taking cognizance of an offence under section 138? |
| A. | the payer or as the case may be, the holder in due course of the cheque |
| B. | any person who is effected can make a complaint |
| C. | the payee with the written permission of the drawee |
| D. | none of the above |
| Answer» A. the payer or as the case may be, the holder in due course of the cheque | |
| 798. |
A complaint against an offence under section 138 of the Negotiable Instrument Act, 1881 |
| A. | must be in writing (section 142) |
| B. | may be oral or in writing (section 142) |
| C. | must be in writing containing a declaration by the drawee that he consents to such filing of the complaint (section 142) |
| D. | none of the above |
| Answer» A. must be in writing (section 142) | |
| 799. |
Under section 143 of the Negotiable Instruments Act, an endeavour shall be made to conclude the trial within.......................... months from the date of filing of the complaint |
| A. | 9 |
| B. | 3 |
| C. | 6 |
| D. | 12 |
| Answer» C. 6 | |
| 800. |
The provision of section 147 of the Negotiable Instruments Act, 1881, that every offence punishable under this Act shall be compoundable was inserted by the |
| A. | amending Act of 1988 |
| B. | amending Act of 1980 |
| C. | amending Act of 2002 |
| D. | none of the above |
| Answer» C. amending Act of 2002 | |
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