McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Commerce (B Com) .
| 151. |
Internal audit is conducted |
| A. | Periodically |
| B. | Throughout the year |
| C. | Once in a year |
| D. | none |
| Answer» B. Throughout the year | |
| 152. |
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» C. Certificate to commencement obtained | |
| 153. |
Amount received as premium can be used to ___________ |
| A. | Purchase Assets |
| B. | Pay of liabilities |
| C. | Issue bonus shares |
| D. | none |
| Answer» C. Issue bonus shares | |
| 154. |
The auditors are liable under |
| A. | Companies Act Only |
| B. | Income Tax Act Only |
| C. | All above |
| D. | none |
| Answer» C. All above | |
| 155. |
The maximum number of audit assignment an auditor can accept is limited to -------------- companies |
| A. | 10 |
| B. | 15 |
| C. | 20 |
| D. | none |
| Answer» C. 20 | |
| 156. |
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» B. Central government | |
| 157. |
The examinations of financial transactions with supporting evidences is called |
| A. | Verification |
| B. | Vouching |
| C. | Auditing |
| D. | none |
| Answer» B. Vouching | |
| 158. |
Which among the following is an example of intangible asset? |
| A. | Goodwill |
| B. | Patents |
| C. | All of these |
| D. | none |
| Answer» C. All of these | |
| 159. |
Which of the following is not an item current asset? |
| A. | Stock |
| B. | Sundry debtors |
| C. | Furniture |
| D. | none |
| Answer» C. Furniture | |
| 160. |
The term inventories stands for |
| A. | Raw materials |
| B. | Work in progress |
| C. | All of these |
| D. | none |
| Answer» C. All of these | |
| 161. |
Sales day book is used for recording |
| A. | Credit sales |
| B. | Cash sales |
| C. | All sales |
| D. | none |
| Answer» A. Credit sales | |
| 162. |
--------------- audit is more suitable for small business houses |
| A. | Continuous |
| B. | Annual |
| C. | Partial |
| D. | none |
| Answer» B. Annual | |
| 163. |
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» C. Documents | |
| 164. |
--------------- is a written plan containing details with regard to the conduct of a particular audit |
| A. | Audit Note book |
| B. | Audit programme |
| C. | Audit files |
| D. | none |
| Answer» B. Audit programme | |
| 165. |
--------------- is the verification of books of accounts from Income tax point of view |
| A. | Cost audit |
| B. | Tax audit |
| C. | Management audit |
| D. | none |
| Answer» B. Tax audit | |
| 166. |
Investigation is conducted |
| A. | Regularly |
| B. | Quarterly |
| C. | As and when required |
| D. | none |
| Answer» C. As and when required | |
| 167. |
Investigation is required when |
| A. | Fraud is suspected in business |
| B. | On acquisition of running business |
| C. | All of them |
| D. | none |
| Answer» C. All of them | |
| 168. |
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» C. Right to lies on books of accounts | |
| 169. |
Test checking is done when there is an effective system of -------------- |
| A. | Internal control |
| B. | Internal audit |
| C. | Internal check |
| D. | none |
| Answer» C. Internal check | |
| 170. |
Test checking means |
| A. | Checking of all transactions |
| B. | Checking of half of the transactions |
| C. | Checking of selected items |
| D. | none |
| Answer» C. Checking of selected items | |
| 171. |
Audit working papers are -------------------------- |
| A. | Important information about audit |
| B. | Appointment letters regarding audit |
| C. | Letter of notice |
| D. | none |
| Answer» A. Important information about audit | |
| 172. |
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» C. Matters relating to the year of audit | |
| 173. |
------------------- begins where accounting ends |
| A. | Bookkeeping |
| B. | Auditing |
| C. | Internal check |
| D. | none |
| Answer» B. Auditing | |
| 174. |
---------------- audit is compulsory for joint stock companies |
| A. | Statutory |
| B. | Final |
| C. | Continuous |
| D. | none |
| Answer» A. Statutory | |
| 175. |
Treating revenue expenditure as capital expenditure is an example of error of ------------------- |
| A. | Principle |
| B. | Compensating |
| C. | Clerical |
| D. | none |
| Answer» A. Principle | |
| 176. |
Financial statements are prepared by |
| A. | The accountant |
| B. | The auditor |
| C. | Managing director |
| D. | none |
| Answer» A. The accountant | |
| 177. |
Preliminary expanses not written off are treated as |
| A. | Fixed assets |
| B. | Intangible assets |
| C. | Fictitious assets |
| D. | none |
| Answer» C. Fictitious assets | |
| 178. |
Verification of assets involves a critical examination of |
| A. | Ownership |
| B. | Existence |
| C. | All of these |
| D. | none |
| Answer» C. All of these | |
| 179. |
Finished goods are valued for a balance sheet purpose |
| A. | At cost price |
| B. | At market price |
| C. | At lower of cost or market price |
| D. | none |
| Answer» C. At lower of cost or market price | |
| 180. |
---------------- includes financial and non-financial control |
| A. | Internal check |
| B. | Internal control |
| C. | Internal audit |
| D. | none |
| Answer» B. Internal control | |
| 181. |
---------------- is concerned with the allocation of work among employees |
| A. | Internal control |
| B. | Internal check |
| C. | Internal audit |
| D. | none |
| Answer» B. Internal check | |
| 182. |
The duties of internal auditor is prescribed by |
| A. | Companies act |
| B. | Company law board |
| C. | Management |
| D. | none |
| Answer» C. Management | |
| 183. |
Internal audit is considered as a service to ------------------- |
| A. | Share holders |
| B. | Board of directories |
| C. | Management |
| D. | none |
| Answer» C. Management | |
| 184. |
Pre-arranging and coordinating the audit work is called ------------------ |
| A. | Audit planning |
| B. | Vouching |
| C. | Verification |
| D. | none |
| Answer» A. Audit planning | |
| 185. |
A fixed audit programme is also called a --------- programme |
| A. | Tailor made |
| B. | Man made |
| C. | Auditor made |
| D. | none |
| Answer» A. Tailor made | |
| 186. |
Share holders minute book should be vouched for |
| A. | Payment to vendors |
| B. | Payment to promoters |
| C. | Issue of bonus shares |
| D. | none |
| Answer» C. Issue of bonus shares | |
| 187. |
---------------- is deducted from called up capital to get paid up capital |
| A. | Subscribed capital |
| B. | Issued capital |
| C. | Calls in arrears |
| D. | none |
| Answer» C. Calls in arrears | |
| 188. |
Discount on issue of shares is shown under the --------------- lead |
| A. | Current asset |
| B. | Preliminary expanses |
| C. | Miscellaneous expanses |
| D. | none |
| Answer» C. Miscellaneous expanses | |
| 189. |
To forfeit shares --------------- days notice to the share holder’s given |
| A. | 40 |
| B. | 14 |
| C. | 24 |
| D. | none |
| Answer» B. 14 | |
| 190. |
-------------- of the companies Act 1956 prescribes the duty of preparing a report by an auditor |
| A. | Sec-227(2) |
| B. | Sec-273(1) |
| C. | Sec-224(2) |
| D. | none |
| Answer» A. Sec-227(2) | |
| 191. |
A --------------- report is one which contains the opinion of the auditor subject to certain conditions |
| A. | Unqualified |
| B. | Qualified |
| C. | Clean |
| D. | none |
| Answer» B. Qualified | |
| 192. |
--------------- is made out of reserves or share premium |
| A. | Preference shares |
| B. | Bonus shares |
| C. | Debentures |
| D. | none |
| Answer» B. Bonus shares | |
| 193. |
---------------- shares cannot be issued if the company makes any default in the payment of its obligation |
| A. | Preference |
| B. | Equity |
| C. | Bonus |
| D. | none |
| Answer» C. Bonus | |
| 194. |
Capitalization of reserves means ------------------------- |
| A. | Creation of provision |
| B. | Declaration of dividend |
| C. | Issue of bonus shares |
| D. | none |
| Answer» C. Issue of bonus shares | |
| 195. |
Provisions regarding bonus issue should be given in -------------------- document |
| A. | Memorandum of association |
| B. | Articles of association |
| C. | Prospectus |
| D. | none |
| Answer» B. Articles of association | |
| 196. |
Balance remaining in the forfeited Account after reissue is transferred to --------------- account |
| A. | General reserve |
| B. | Capital reserve |
| C. | Premium account |
| D. | none |
| Answer» B. Capital reserve | |
| 197. |
If reissue of shares are more than face value of shares, the excess amount is transferred to ---------- account. |
| A. | General reserve |
| B. | Capital reserve |
| C. | Premium account |
| D. | none |
| Answer» C. Premium account | |
| 198. |
Share call amount due is credited to ------------------ account |
| A. | Share application account |
| B. | Share allotment account |
| C. | Share capital account |
| D. | none |
| Answer» C. Share capital account | |
| 199. |
When excess applications money is refunded to applicants it is vouched with cash book and ------- |
| A. | Letter of allotment |
| B. | Letter of call |
| C. | Letter of regreat |
| D. | none |
| Answer» C. Letter of regreat | |
| 200. |
Partial auditing is usually done by |
| A. | Sole trading concern |
| B. | Joint stock company |
| C. | Govt. department |
| D. | none |
| Answer» A. Sole trading concern | |
Done Studing? Take A Test.
Great job completing your study session! Now it's time to put your knowledge to the test. Challenge yourself, see how much you've learned, and identify areas for improvement. Don’t worry, this is all part of the journey to mastery. Ready for the next step? Take a quiz to solidify what you've just studied.