McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Commerce (B Com) .
Chapters
| 1. |
The accounting standards Board (India) was formed by the Institute of Chartered Accountants of India in April--------------- |
| A. | 1977 |
| B. | 1978 |
| C. | 2001 |
| D. | 2009 |
| Answer» A. 1977 | |
| 2. |
Accounting Standards in India are Issued by the ………….. |
| A. | ICAI |
| B. | BMCC |
| C. | IT |
| D. | IMA |
| Answer» A. ICAI | |
| 3. |
Accounting Standards are beneficial not only to the business enterprises but also to the………….. as well. |
| A. | accountants & auditor |
| B. | Customers |
| C. | Family and Country |
| D. | Traders |
| Answer» A. accountants & auditor | |
| 4. |
The important objective of Accounting standards is to the …………..diverse accounting policies and practices at present in use in India. |
| A. | harmonies |
| B. | incomplete |
| C. | complex |
| D. | compact |
| Answer» A. harmonies | |
| 5. |
AS-7 deals with accounting for construction contracts in financial statements of |
| A. | contractors |
| B. | Accountants |
| C. | Agents |
| D. | Dealers |
| Answer» A. contractors | |
| 6. |
AS -26 deals with the treatment of costs of……………in financial statements. |
| A. | Research & development |
| B. | Construction contract |
| C. | Assets |
| D. | Risk & Rewards |
| Answer» A. Research & development | |
| 7. |
Investment made by government as equity in the ownership of an enterprise is known as ------------ |
| A. | participation |
| B. | interested |
| C. | refundable |
| D. | not interested |
| Answer» A. participation | |
| 8. |
Govt. grants become -----------because of non fulfillment of the conditions attached to that grant. |
| A. | Refundable |
| B. | non refundable |
| C. | overdraft |
| D. | income |
| Answer» A. Refundable | |
| 9. |
AS 15 deals with the accounting for retirement benefits in the financial statements of -------------- |
| A. | employers |
| B. | employees |
| C. | top manager |
| D. | none of these |
| Answer» A. employers | |
| 10. |
Revised AS 15 – Employees benefits is applicable in respect of accounting periods commencing on or after 1st April ---------- |
| A. | 2006 |
| B. | 1978 |
| C. | 2001 |
| D. | 2009 |
| Answer» A. 2006 | |
| 11. |
AS …………….also focuses on profit sharing and bonus plan. |
| A. | AS- 15 |
| B. | AS-21 |
| C. | AS- 28 |
| D. | AS- 7 |
| Answer» A. AS- 15 | |
| 12. |
AS-17 segment reporting applies to those companies which have an annual turnover of Rs……….crores or more. |
| A. | 50 |
| B. | 80 |
| C. | 21 |
| D. | 20 |
| Answer» A. 50 | |
| 13. |
…………….reporting helps uses of financial statements to better assess the risk and t returns of the enterprise. |
| A. | segment |
| B. | Account |
| C. | statement |
| D. | management |
| Answer» A. segment | |
| 14. |
As per AS-19 …………nlease risk and reward is not transferred to the lessee. |
| A. | operating |
| B. | non operating |
| C. | manageable |
| D. | refundable |
| Answer» A. operating | |
| 15. |
In financial lease as per As-19 leased assets is shown in the Balanced sheet of-- |
| A. | lessee |
| B. | income |
| C. | loss |
| D. | refund |
| Answer» A. lessee | |
| 16. |
AS -20 deals with presentation and Computation of--------------- |
| A. | earnings per share |
| B. | profit sharing ratio |
| C. | rate of interest |
| D. | solvency |
| Answer» A. earnings per share | |
| 17. |
Earning per share is very important financial ratio is computed for assessing the state of --------------price of shares. |
| A. | Market |
| B. | area |
| C. | shops |
| D. | none of these |
| Answer» A. Market | |
| 18. |
Right issue generally made at a price lower that…………….value of shares. |
| A. | Fair |
| B. | fixed |
| C. | computing |
| D. | fluctuating |
| Answer» A. Fair | |
| 19. |
Impairment assets is nothing but………………….in the value of assets |
| A. | decrease |
| B. | increase |
| C. | fixed |
| D. | none of these |
| Answer» A. decrease | |
| 20. |
Recoverable amount of an asset isof selling price and value of an assets in use. |
| A. | higher |
| B. | lower |
| C. | a and d only |
| D. | fixed |
| Answer» A. higher | |
| 21. |
AS 7 does not apply to Contractors |
| A. | false |
| B. | true |
| C. | none of the above |
| D. | may be false |
| Answer» A. false | |
| 22. |
As per AS architects services are not included in construction contract. |
| A. | false |
| B. | true |
| C. | may be true |
| D. | both a and b |
| Answer» A. false | |
| 23. |
As per AS 7 Research and Development cost is to be excluded from contract cost . |
| A. | true |
| B. | false |
| C. | may be false |
| D. | neither a nor b |
| Answer» A. true | |
| 24. |
AS – 7 deals with accounting for Government grants. |
| A. | false |
| B. | true |
| C. | may be true |
| D. | neither true nor false |
| Answer» A. false | |
| 25. |
As per AS 15 accumulated compensated absences can be carried forward if the current period entitlement is not used in full. |
| A. | true |
| B. | false |
| C. | may be false |
| D. | may be true |
| Answer» A. true | |
| 26. |
A parent co. should account for the investment in subsidiaries in accordance with AS -13 |
| A. | true |
| B. | false |
| C. | May be true |
| D. | only b |
| Answer» A. true | |
| 27. |
A-5 does not indicate the frequency of interim financial report. |
| A. | true |
| B. | either true or false |
| C. | both a and b |
| D. | only false |
| Answer» A. true | |
| 28. |
A 25 focuses on change in accounting policies also. |
| A. | true |
| B. | only false |
| C. | may be true |
| D. | may be false |
| Answer» A. true | |
| 29. |
As per As- 28 impairment of asset means decrease in the value of asset. |
| A. | true |
| B. | false |
| C. | only true |
| D. | May be true |
| Answer» A. true | |
| 30. |
As per AS -30 prepaid expenses are not financial instruments. |
| A. | true |
| B. | false |
| C. | neither true nor false |
| D. | may be false. |
| Answer» A. true | |
| 31. |
The banking regulation Act --. |
| A. | 1949 |
| B. | 1947 |
| C. | 1932 |
| D. | 1956 |
| Answer» A. 1949 | |
| 32. |
Banking companies in India are governed by ………………….. |
| A. | As per act 1932 |
| B. | Income Tax act |
| C. | AS-23 |
| D. | Banking Regulation Act 1949 |
| Answer» D. Banking Regulation Act 1949 | |
| 33. |
An assets becomes non performing when it to generate income for bank. |
| A. | lease |
| B. | ceases |
| C. | computerized |
| D. | easy. |
| Answer» B. ceases | |
| 34. |
Banks are to recognize their income on…………….basis in respect of income on performing asset. |
| A. | Accrual |
| B. | cash |
| C. | credit |
| D. | none. |
| Answer» A. Accrual | |
| 35. |
Banks are to recognize their income on……………… basis in respect of income on non performing asset. |
| A. | Accrual |
| B. | cash |
| C. | credit |
| D. | none. |
| Answer» B. cash | |
| 36. |
Sub standard asset are certain loan asset of a bank which are classified as ………….assets for a period not exceeding two year. |
| A. | non –performing |
| B. | performing |
| C. | Current |
| D. | Fluctuating. |
| Answer» A. non –performing | |
| 37. |
The main function of………………company are accepts deposits money |
| A. | Private |
| B. | Public |
| C. | Banking |
| D. | Capital marketing |
| Answer» B. Public | |
| 38. |
…………….asset is one which has been classified as non-performing asset for period not exceeding than………….years |
| A. | Fixed – 13 |
| B. | Fluctuating – 11 |
| C. | Intangible – 1 |
| D. | Substandard – 2 |
| Answer» A. Fixed – 13 | |
| 39. |
Core banking system…………. system. |
| A. | Bank end |
| B. | work flow |
| C. | open end |
| D. | internal |
| Answer» A. Bank end | |
| 40. |
Every banking company should prepare a balance sheet and profit and loss accounts as on……………..each year. |
| A. | 31st March |
| B. | 31st July |
| C. | 31st December |
| D. | None |
| Answer» A. 31st March | |
| 41. |
Banking Companies in India are governed by Banking Regulation act 1952. |
| A. | true |
| B. | false |
| C. | may be true |
| D. | ma be false |
| Answer» B. false | |
| 42. |
The main function of a banking company are to accept deposits of money from the public and to lend or invest these deposits. |
| A. | true |
| B. | false |
| C. | only true |
| D. | ma be false |
| Answer» A. true | |
| 43. |
Non-Banking Assets must be shown in the Balance Sheet in scheduled 8. |
| A. | true |
| B. | may be false |
| C. | may be true |
| D. | false |
| Answer» B. may be false | |
| 44. |
Acceptance, Endorsements and other obligations are a contingent liability of bank. |
| A. | True |
| B. | False |
| C. | May be false |
| D. | May be true |
| Answer» B. False | |
| 45. |
Rebate of Bills discounted is an income received in advanced which is carried forward as other liability. |
| A. | true |
| B. | false |
| C. | may be true |
| D. | only true |
| Answer» A. true | |
| 46. |
Transfer of money from one place to another i.e. mail transfer is an item to be excluded from bills payable. |
| A. | True |
| B. | False |
| C. | May be false |
| D. | May be true |
| Answer» B. False | |
| 47. |
An assets become non-performing when it ceases to generate income for a Bank. |
| A. | True |
| B. | False |
| C. | May be false |
| D. | May be true |
| Answer» A. True | |
| 48. |
Banks are to recognize their income on cash basis in respect of income on performing assets. |
| A. | true |
| B. | false |
| C. | may be true |
| D. | may be false |
| Answer» B. false | |
| 49. |
Sub-standard assets is one which has been classified as non performing asset for a period not exceeding three years. |
| A. | true |
| B. | false |
| C. | may be true |
| D. | only true |
| Answer» B. false | |
| 50. |
Every banking company incorporated in India must transfer to the Reserve fund a sum equivalent to not less than 25% of profit of each year before declaration of dividend. |
| A. | true |
| B. | false |
| C. | only a |
| D. | a or b |
| Answer» A. true | |
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