McqMate
Chapters
| 1. |
The form of balance sheet is……………….. |
| A. | Vertical |
| B. | Horizontal |
| C. | Horizontal and vertical |
| D. | None of the above |
| Answer» C. Horizontal and vertical | |
| 2. |
The term current asset doesn’t cover |
| A. | Car |
| B. | Debtors |
| C. | Stock |
| D. | Prepaid expenses |
| Answer» A. Car | |
| 3. |
P&L statement is also known as |
| A. | Statement of operations |
| B. | Statement of income |
| C. | Statement of earnings |
| D. | All of the above |
| Answer» B. Statement of income | |
| 4. |
Which of the following is true about financial statements? I)Financial statement gives a summary of accounts. II) Financial statements can be stated as recorded facts. |
| A. | Only I |
| B. | Only II |
| C. | Both I andII |
| D. | None of the above |
| Answer» C. Both I andII | |
| 5. |
The statement of financial position and the balance sheet are synonyms |
| A. | True |
| B. | False |
| C. | none |
| D. | none |
| Answer» A. True | |
| 6. |
Which of the following statements are true? I) Financial statements are only interim report. II) Financial statements are also known as annual records. III) Financial statements are historic. |
| A. | Both I and II |
| B. | Both I and III |
| C. | Both II and III |
| D. | I, II, III |
| Answer» C. Both II and III | |
| 7. |
Certain assumptions are essential to prepare financial statements. |
| A. | True |
| B. | False |
| C. | none |
| D. | none |
| Answer» A. True | |
| 8. |
Premium received on issue of shares cannot be utilised for ---------. |
| A. | for the issue of bonus shares . |
| B. | for writing of preliminary expenses |
| C. | for providing premium payable on redemption |
| D. | for distribution of dividend. |
| Answer» D. for distribution of dividend. | |
| 9. |
In case of public limited company, after getting the-----------the company can start the business |
| A. | Memorandum of Association |
| B. | Table A |
| C. | Certificate of commencement of business |
| D. | Articles of Association |
| Answer» C. Certificate of commencement of business | |
| 10. |
Trade Payables are recorded in…………………. |
| A. | Current Liabilities |
| B. | Current Assets |
| C. | Equity |
| D. | Inventories |
| Answer» A. Current Liabilities | |
| 11. |
In company Final Accounts Goodwill is shown under…………… |
| A. | Current Liabilities |
| B. | Current Assets |
| C. | Fixed Assets |
| D. | Inventories |
| Answer» C. Fixed Assets | |
| 12. |
Dividend is payable on the amount of………………………….. |
| A. | Profit |
| B. | Reserves |
| C. | Loss |
| D. | Income |
| Answer» A. Profit | |
| 13. |
The dividend paid between two annual general meeting is known a………………………. |
| A. | Final dividend |
| B. | Ex Dividend |
| C. | Interim Dividend |
| D. | Dividend |
| Answer» C. Interim Dividend | |
| 14. |
Unclaimed dividend recorded on the…………………….. the balance sheet. |
| A. | Liability |
| B. | Assets |
| C. | Credit |
| D. | Debit |
| Answer» A. Liability | |
| 15. |
A liability which can be measured only by using a substantial degree of estimation is called………………………. |
| A. | Contingent liabilities |
| B. | Contingent Assets |
| C. | Fixed Assets |
| D. | Non Current Liabilities |
| Answer» A. Contingent liabilities | |
| 16. |
Unquoted shares means………………………. |
| A. | Listed Shares |
| B. | Quoted Shares |
| C. | Unquoted Shares |
| D. | Unlisted Shares |
| Answer» D. Unlisted Shares | |
| 17. |
Bills receivable is ……………………..assets. |
| A. | Current |
| B. | Non - current |
| C. | Fixed Assets |
| D. | Investment |
| Answer» A. Current | |
| 18. |
The amount of profit kept a side to maintain uniform rate of dividend is called……………… |
| A. | Ex Dividend |
| B. | Final Dividend |
| C. | Undistributed Dividend |
| D. | Dividend |
| Answer» C. Undistributed Dividend | |
| 19. |
Director’s remuneration shall not exceed ………………. % of the net profits. |
| A. | 10% |
| B. | 20% |
| C. | 15% |
| D. | 13.333% |
| Answer» A. 10% | |
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