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McqMate
Chapters
201. |
Which of the following does not involve liquidation of any company? |
A. | internal reconstruction |
B. | amalgamation |
C. | absorption |
D. | external reconstruction |
Answer» A. internal reconstruction |
202. |
Under which of the following circumstances can a company resort to internal reconstruction? |
A. | accumulated huge losses |
B. | shortage of capital |
C. | over valued assets |
D. | all of these |
Answer» D. all of these |
203. |
The balance in capital reduction a/c after writing off all accumulated loss, fictitious assets and overvalued assets are transferred to ------------- |
A. | capital reserve |
B. | general reserve |
C. | reserve capital |
D. | good will |
Answer» A. capital reserve |
204. |
Which of the following result in reduction of capital? |
A. | Reducing share capital |
B. | reducing the amount payable to creditors |
C. | appreciation in the value of assets |
D. | all of these |
Answer» D. all of these |
205. |
Which of the following is not an alteration of capital? |
A. | consolidation of shares |
B. | sub- division of shares |
C. | conversion of shares in to stock |
D. | paid off paid up capital in excess of needs of the company. |
Answer» D. paid off paid up capital in excess of needs of the company. |
206. |
Internal reconstruction can be done by ---------- |
A. | Alteration of share capital |
B. | reduction of share capital |
C. | issue of share capital |
D. | all of these |
Answer» D. all of these |
207. |
Which of the following is not a case of combination? |
A. | external reconstruction |
B. | internal reconstruction |
C. | amalgamation |
D. | absorption |
Answer» B. internal reconstruction |
208. |
The term banking is defined in section …. |
A. | section 5 of banking regulation Act |
B. | section 4 |
C. | section 7 |
D. | none of these |
Answer» A. section 5 of banking regulation Act |
209. |
A bank can open a branch only at the permission of the… |
A. | SBI |
B. | RBI |
C. | Government. |
D. | none of these |
Answer» B. RBI |
210. |
Schedule 16 relates to…. |
A. | interest earned |
B. | interest expended |
C. | operating expenses |
D. | none of these |
Answer» C. operating expenses |
211. |
Schedule 9 relates to…. |
A. | fixed assets |
B. | borrowings |
C. | advances |
D. | capital |
Answer» C. advances |
212. |
Banks are required to transfer ….. of their profits to statutory reserve |
A. | 20% |
B. | 25% |
C. | 10% |
D. | none of these |
Answer» B. 25% |
213. |
Assets acquired by a bank in satisfaction of a claim are known as… |
A. | non-banking assets |
B. | performing assets |
C. | standard assets |
D. | none of these |
Answer» A. non-banking assets |
214. |
Assets which do not carry more than normal credit risk is known as…. |
A. | loss asset |
B. | risk asset |
C. | standard asset |
D. | none of these |
Answer» C. standard asset |
215. |
On standard asset a minimum provision of….is required |
A. | .25% |
B. | .10% |
C. | .40% |
D. | none of these |
Answer» C. .40% |
216. |
------ represents that part of discount received during the year by a bank which relates to the next accounting year. |
A. | trade discount |
B. | normal discount |
C. | unexpired discount |
D. | cash discount |
Answer» C. unexpired discount |
217. |
A scheduled bank is required to maintain with RBI --------- at a prescribed percentage of their total time and demand deposit. |
A. | SLR |
B. | CRR |
C. | statutory reserve |
D. | branch adjustment |
Answer» B. CRR |
218. |
Every bank is required to maintain ----- with RBI in the form of cash, gold and securities an amount not less than 25% of their demand and time liabilities. |
A. | CRR |
B. | SLR |
C. | statutory reserve |
D. | branch adjustment |
Answer» B. SLR |
219. |
Which of the following is not an advance given by a bank? |
A. | loan |
B. | overdraft |
C. | deposit |
D. | cash credit |
Answer» C. deposit |
220. |
------ is a liability which may or may not arise in future depending on happening of some uncertain future event. |
A. | contingent liability |
B. | bills for collection |
C. | non-banking liability |
D. | bills payable |
Answer» A. contingent liability |
221. |
Acceptances, endorsements and obligations on behalf of a customer will be shown as ----- in the balance sheet of a company. |
A. | other asset |
B. | other liability |
C. | borrowings |
D. | contingent liability |
Answer» D. contingent liability |
222. |
NPA for a period not exceeding 12 months is called as ----- asset. |
A. | loss |
B. | standard |
C. | sub-standard |
D. | doubtful |
Answer» C. sub-standard |
223. |
Advanced tax paid by a banking company is shown as ---- in the Balance Sheet. |
A. | Advance |
B. | Investment |
C. | Other assets |
D. | contingent liability |
Answer» C. Other assets |
224. |
Provision for Income tax is shown in a bank’s Balance Sheet as ------ |
A. | Contingent liability |
B. | Contingent asset |
C. | Borrowings |
D. | other liabilities and provisions |
Answer» D. other liabilities and provisions |
225. |
Rebate on bills discounted is shown in the Balance Sheet as ------ |
A. | Advances |
B. | Other liabilities & provisions |
C. | Other income |
D. | reserves & surplus |
Answer» B. Other liabilities & provisions |
226. |
Rebate on bills discounted is also called -------- |
A. | Unexpired discount |
B. | Earned discount |
C. | Expired discount |
D. | received discount |
Answer» A. Unexpired discount |
227. |
While preparing P/L account , rebate on bills discounted to be provided shall be deducted from discount received in -------- |
A. | Schedule 16 |
B. | Schedule 15 |
C. | Schedule 14 |
D. | schedule 13 |
Answer» D. schedule 13 |
228. |
Which of the following are performing assets? |
A. | Loss asset |
B. | Standard asset |
C. | Sub-standard asset |
D. | doubtful asset |
Answer» B. Standard asset |
229. |
Interest on non-performing assets should be recognized on -------- basis. |
A. | actually received |
B. | accrual |
C. | standard |
D. | none |
Answer» A. actually received |
230. |
Which of the following represents term deposit? |
A. | Savings deposit |
B. | current deposit |
C. | fixed deposit |
D. | none |
Answer» C. fixed deposit |
231. |
The short term advances made by a bank to the stock brokers and bill brokers are called --------- |
A. | Money at call |
B. | short loan |
C. | short provision |
D. | inter-office adjustment |
Answer» A. Money at call |
232. |
------ is an annual payment made by a life insurance company in consideration form a lump sum received. |
A. | claim |
B. | annuity |
C. | bonus |
D. | premium |
Answer» B. annuity |
233. |
Which of the following represents policy holders a/c? |
A. | P/L a/c |
B. | revenue a/c |
C. | balance sheet |
D. | none |
Answer» B. revenue a/c |
234. |
------ is a device of reducing the risk undertaken by an insurance company. |
A. | re-insurance |
B. | double insurance |
C. | risk insurance |
D. | none of these |
Answer» A. re-insurance |
235. |
Under ……policy the sum assured becomes payable on the attainment of a specific age or on death whichever is earlier |
A. | whole time life policy |
B. | endowment policy |
C. | with profit policy |
D. | none of these |
Answer» B. endowment policy |
236. |
…….is a reserve created to meet any loss due to natural calamities. |
A. | revenue reserve |
B. | capital reserve |
C. | catastrophe reserve |
D. | none of these |
Answer» C. catastrophe reserve |
237. |
Life insurance is a contract of…… |
A. | indemnity |
B. | guarantee |
C. | contribution . |
D. | none of these |
Answer» B. guarantee |
238. |
General insurance is a contract of …… |
A. | contribution |
B. | indemnity |
C. | guarantee |
D. | none of these |
Answer» B. indemnity |
239. |
In the case of marine insurance reserve for unexpired risk is ….. |
A. | 50% |
B. | 100% |
C. | 40% |
D. | none of these |
Answer» B. 100% |
240. |
Valuation balance sheet is prepared by a life insurance company to find out |
A. | Profit or loss |
B. | financial position |
C. | surplus or deficiency |
D. | net liability |
Answer» C. surplus or deficiency |
241. |
Insurance Regulatory and Development Authorities Act came in to effect in |
A. | 2001 |
B. | 2004 |
C. | 1999 |
D. | none of these |
Answer» C. 1999 |
242. |
Bonus payable on maturity of the policy is termed as |
A. | cash bonus |
B. | capital bonus |
C. | reversionary bonus |
D. | none of these |
Answer» C. reversionary bonus |
243. |
Insurance Act came in to effect in…., |
A. | 1956 |
B. | 1972 |
C. | 1938 |
D. | none of these |
Answer» C. 1938 |
244. |
Legal expenses in respect of claims of an insurance company is shown in ----------- |
A. | P&L a/c |
B. | Revenue a/c |
C. | Balance sheet |
D. | Surplus a/c |
Answer» B. Revenue a/c |
245. |
Bonus in reduction of premium appears in the revenue a/c as ---------- |
A. | an income |
B. | an expense |
C. | no where |
D. | profit |
Answer» B. an expense |
246. |
……………… is an artificial person created by law |
A. | Firm |
B. | Sole trader |
C. | Company |
D. | None of these |
Answer» C. Company |
247. |
The liability of shareholders of a company is ……………….. |
A. | Limited |
B. | Unlimited |
C. | Uncertain |
D. | None of these |
Answer» A. Limited |
248. |
A company is managed by its……………. |
A. | Partners |
B. | Auditor |
C. | Board of Directors |
D. | Debenture holder |
Answer» C. Board of Directors |
249. |
………….company Is a company created by a special Act in Parliament |
A. | Government |
B. | Registered |
C. | Chartered |
D. | Statutory |
Answer» D. Statutory |
250. |
A company registered with Registrar of Companies under Indian Companies Act is called as……….. |
A. | Government |
B. | Registered |
C. | Chartered |
D. | Statutory |
Answer» B. Registered |
251. |
The company in which the liability of members is liable to pay the agreed amount at the time of winding up is called as ………….. |
A. | Unlimited Company |
B. | Company limited by shares |
C. | Company limited by guarantee |
D. | Liquidating Company |
Answer» C. Company limited by guarantee |
252. |
A company in which the transferability of share is restricted is called as ………….. |
A. | Government Company |
B. | Private Company |
C. | Public Company |
D. | Foreign Company |
Answer» B. Private Company |
253. |
……….is the first stage in the formation of a public company |
A. | Promotion |
B. | Incorporation |
C. | Capital Subscription |
D. | Commencement |
Answer» A. Promotion |
254. |
Authorised capital is called as…………… |
A. | Reserve capital |
B. | Nominal Capital |
C. | Capital Reserve |
D. | Subscribed capital |
Answer» B. Nominal Capital |
255. |
…………..is that portion of capital which is called up only on winding up of the company. |
A. | Authorised Capital |
B. | Issued capital |
C. | Subscribed capital |
D. | Reserve capital |
Answer» D. Reserve capital |
256. |
In case of ……………..preference shares, the arrears of dividend are carried forward and paid out of the profits of the subsequent years. |
A. | Participating |
B. | Convertible |
C. | Cumulative |
D. | Redeemable |
Answer» C. Cumulative |
257. |
…………..shares are repayable after the expiry of the fixed period or at the option of the company. |
A. | Participating |
B. | Convertible |
C. | Cumulative |
D. | Redeemable |
Answer» D. Redeemable |
258. |
A bundle of fully paid shares is called…………….. |
A. | Stock |
B. | Sweat Equity |
C. | Warrant |
D. | None of these |
Answer» A. Stock |
259. |
IPO stands for ……………… |
A. | Initial Private Offer |
B. | International Public Offer |
C. | Initial Public Offer |
D. | International Private Offer |
Answer» C. Initial Public Offer |
260. |
In …... the company offers the investors an opportunity to bid collectively. |
A. | Private Placement |
B. | Offer for sale |
C. | Book building |
D. | IPO |
Answer» C. Book building |
261. |
As per the companies Act, the interest on calls in advance is ………….. |
A. | 10% |
B. | 6% |
C. | 5% |
D. | 7% |
Answer» B. 6% |
262. |
The rate of interest on Calls in arrears as per Companies Act is ………… |
A. | 10% |
B. | 6% |
C. | 5% |
D. | 7% |
Answer» C. 5% |
263. |
The shares of a company can be issued at ………….. |
A. | Par |
B. | Premium |
C. | Discount |
D. | All of these |
Answer» D. All of these |
264. |
Share application account is a ……….. |
A. | Real Account |
B. | Nominal Account |
C. | Impersonal Account. |
D. | Personal Account |
Answer» D. Personal Account |
265. |
The rate of discount on shares cannot exceed ………. |
A. | 10% |
B. | 5% |
C. | 6% |
D. | 7% |
Answer» A. 10% |
266. |
A newly established company cannot issue shares at …… |
A. | Par |
B. | Premium |
C. | Discount |
D. | All of these |
Answer» C. Discount |
267. |
………..of total issued amount of capital is called minimum subscription. |
A. | 75% |
B. | 90% |
C. | 95% |
D. | 80% |
Answer» B. 90% |
268. |
The rate of discount should not exceed ……………. Of nominal vale of shares. |
A. | 10% |
B. | 5% |
C. | 6% |
D. | 7% |
Answer» A. 10% |
269. |
The minimum application money to be paid by an applicant must not be less than …….as per Companies Act. |
A. | 10% |
B. | 5% |
C. | 15% |
D. | 20% |
Answer» B. 5% |
270. |
The excess price received on the par value of shares should be credited to …………. |
A. | Calls in advance A/c |
B. | Reserve Capital A/c |
C. | Security Premium A/c |
D. | None of these |
Answer» C. Security Premium A/c |
271. |
Underwriting commission is classified as ………….. |
A. | Capital Loss |
B. | Capita Expenditure |
C. | Revenue expenditure |
D. | Deferred revenue expenditure |
Answer» D. Deferred revenue expenditure |
272. |
Compulsory cancellation of shares by the company\y due to non‐payment of allotment or call money is called ……………. |
A. | Surrender of Shares |
B. | Buy back of shares |
C. | Forfeiture of shares |
D. | All of these |
Answer» C. Forfeiture of shares |
273. |
The profit on reissue of forfeited shares is transferred to ……… |
A. | General reserve |
B. | Capital Redemption reserve |
C. | Capital reserve |
D. | Investment Allowance reserve |
Answer» C. Capital reserve |
274. |
Preference shareholders are………… |
A. | Debtors of the company |
B. | Creditors of the company |
C. | Owners of the company |
D. | None of these |
Answer» C. Owners of the company |
275. |
The shares firstly offered to the existing shareholders are called as …………. |
A. | Right shares |
B. | Bonus shares |
C. | Ordinary shares |
D. | None of these |
Answer» A. Right shares |
276. |
The security premium account is shown in the balance sheet under the head………. |
A. | Share capital |
B. | Reserves & Surplus |
C. | Secured loans |
D. | Current liabilities |
Answer» B. Reserves & Surplus |
277. |
………..should be deducted from the share capital to determine the paid up capital. |
A. | Security premium |
B. | Calls in advance |
C. | Calls in arrears |
D. | Discount on issue |
Answer» C. Calls in arrears |
278. |
The share capital account is debited with …………while forfeiting shares |
A. | Calls in arrears |
B. | Paid up capital |
C. | Called capital |
D. | Issued capital |
Answer» C. Called capital |
279. |
On an equity share of Rs. 20, the company has called up Rs. 16 but Rs.14 has been received by the company, the share capital account should be credited by …… |
A. | Rs. 20 |
B. | Rs. 16 |
C. | Rs. 14 |
D. | Rs. 6 |
Answer» B. Rs. 16 |
280. |
Balance of forfeited share is ……. |
A. | Revenue Reserve |
B. | Capital Reserve |
C. | Secret Reserve |
D. | Security Premium |
Answer» B. Capital Reserve |
281. |
When shares are issued at a price higher than their face value, it is called issue at………….. |
A. | Par |
B. | Premium |
C. | Discount |
D. | None of these |
Answer» B. Premium |
282. |
The shares of a company only can be forfeited after giving a ………days notice |
A. | 21 |
B. | 14 |
C. | 7 |
D. | 30 |
Answer» B. 14 |
283. |
The forfeited shares can be reissued at ………… |
A. | Par |
B. | Premium |
C. | Discount |
D. | All of these |
Answer» D. All of these |
284. |
Discount on reissue of forfeited shares should not exceed …………. |
A. | Amount forfeited |
B. | Face value |
C. | Issued price |
D. | Market price |
Answer» A. Amount forfeited |
285. |
Preference shares cannot be redeemed at ……….. |
A. | Par |
B. | Premium |
C. | Discount |
D. | All of these |
Answer» C. Discount |
286. |
Preference shares can be redeemed by…………. |
A. | Fresh issue of shares |
B. | Profit |
C. | Partly out of fresh issue and partly out of profit. |
D. | All of these |
Answer» D. All of these |
287. |
…………… preference shares can be redeemed |
A. | Fully paid |
B. | Partly paid |
C. | Both A and B |
D. | None of these |
Answer» A. Fully paid |
288. |
Profit available for dividend distribution is called …………. |
A. | Capital profit |
B. | Divisible profit |
C. | Capital Reserve |
D. | None of these |
Answer» B. Divisible profit |
289. |
Which of the following is an example for capital profit? |
A. | Capital Reserves |
B. | Security premium |
C. | Forfeited shares |
D. | All of these. |
Answer» D. All of these. |
290. |
Which of the following is an example for divisible profit? |
A. | General Reserve |
B. | Security premium |
C. | Forfeited shares |
D. | All of these. |
Answer» A. General Reserve |
291. |
In case of redemption out f profit, an amount equal to face value of shares so redeemed should be transferred to ………… |
A. | Security premium |
B. | Capital Redemption Reserve |
C. | Dividend Equalization Reserve |
D. | None of these |
Answer» B. Capital Redemption Reserve |
292. |
Capital Redemption Reserve Account can be utilized for……… |
A. | Writing off past losses |
B. | Issuing partly paid bonus shares |
C. | Writing off capital losses |
D. | Issuing fully paid bonus shares |
Answer» D. Issuing fully paid bonus shares |
293. |
The allotment of shares in case of oversubscription is called….. |
A. | Pro‐rata allotment |
B. | Private Placement |
C. | Offer for sale |
D. | None of these |
Answer» A. Pro‐rata allotment |
294. |
Security premium account can be utilized for …………. |
A. | Issuing fully paid bonus shares |
B. | Write off preliminary expenses |
C. | Write off underwriting commission |
D. | All of these |
Answer» D. All of these |
295. |
…………..is that portion of issued capital which is applied for by the public. |
A. | Issued capital |
B. | Subscribed capital |
C. | Nominal Capital |
D. | Paid up capital |
Answer» B. Subscribed capital |
296. |
……………is an instrument of acknowledgment of debt. |
A. | Equity share |
B. | Preference Share |
C. | Debenture |
D. | All of these |
Answer» C. Debenture |
297. |
Debenture represents ………. Of a company |
A. | Borrowed capital |
B. | Owned capital |
C. | Hybrid capital |
D. | None of these |
Answer» A. Borrowed capital |
298. |
Debenture holders will get …….. |
A. | Dividend |
B. | Interest |
C. | Profit |
D. | All of these |
Answer» B. Interest |
299. |
Debenture holders are the ……….of a company |
A. | Debtors |
B. | Owners |
C. | Creditors |
D. | Borrowers |
Answer» C. Creditors |
300. |
A charge created not on specific assets but generally on all assets is known as…………. |
A. | Fixed charge |
B. | Floating charge |
C. | Mortgage |
D. | None of these |
Answer» B. Floating charge |
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