McqMate
Chapters
| 301. |
…………..debentures can be transferred only with the knowledge of the company. |
| A. | Naked |
| B. | Mortgage |
| C. | Registered |
| D. | Bearer |
| Answer» C. Registered | |
| 302. |
………..debentures are transferable by mere delivery |
| A. | Naked |
| B. | Mortgage |
| C. | Registered |
| D. | Bearer |
| Answer» D. Bearer | |
| 303. |
…………debentures are secured by the assets of the company |
| A. | Naked |
| B. | Mortgage |
| C. | Registered |
| D. | Bearer |
| Answer» B. Mortgage | |
| 304. |
Unsecured debentures are called as ……………….debentures |
| A. | Naked |
| B. | Mortgage |
| C. | Registered |
| D. | Bearer |
| Answer» A. Naked | |
| 305. |
FCD stands for …………… |
| A. | Fixed Charge Debentures |
| B. | Floating Charge Debentures |
| C. | Fully Convertible Debentures |
| D. | None of these |
| Answer» C. Fully Convertible Debentures | |
| 306. |
When debentures are issued as a consideration of purchase of assets …………. Is debited. |
| A. | Debenture Account |
| B. | Cash Account |
| C. | Assets Account |
| D. | Creditor Account |
| Answer» C. Assets Account | |
| 307. |
Discount or loss on issue of debenture is a …………. |
| A. | Capital Profit |
| B. | Revenue Receipt |
| C. | Capital Loss |
| D. | Revenue Expense |
| Answer» C. Capital Loss | |
| 308. |
Discount or loss on issue of debenture is shown in the balance sheet under the head …….. |
| A. | Reserves & Surplus |
| B. | Secured loans |
| C. | Current liabilities |
| D. | Miscellaneous expenditure |
| Answer» D. Miscellaneous expenditure | |
| 309. |
Debentures can be redeemed out of ………. |
| A. | Fresh issue |
| B. | Capital |
| C. | Profit |
| D. | All of these |
| Answer» D. All of these | |
| 310. |
Interest on debenture is ………. |
| A. | Adjustment of profit |
| B. | Appropriation of Profit. |
| C. | Charge on profit |
| D. | None of these |
| Answer» C. Charge on profit | |
| 311. |
Debentures are shown in the balance sheet under the head ……….. |
| A. | Secured loans |
| B. | Unsecured loans |
| C. | Provisions |
| D. | Current liabilities |
| Answer» A. Secured loans | |
| 312. |
After realizing all the investments, the balance in the sinking fund account is transferred to ………… |
| A. | Profit and Loss A/c |
| B. | Debenture Account |
| C. | Sinking fund A/c |
| D. | Capital reserve |
| Answer» D. Capital reserve | |
| 313. |
When own debentures are cancelled, any profit on cancellation is transferred to …….. |
| A. | General Reserve |
| B. | Capital Reserve |
| C. | Profit and Loss A/c |
| D. | Debenture A/c |
| Answer» B. Capital Reserve | |
| 314. |
If the purchase price of debentures includes interest for the expired period, the quotation is said to be ………….. |
| A. | Ex‐interest |
| B. | Cum‐interest |
| C. | Co‐interest |
| D. | None of these |
| Answer» B. Cum‐interest | |
| 315. |
If the purchase price of debentures excluding interest for the expired period, the quotation is said to be ………….. |
| A. | Ex‐interest |
| B. | Cum‐interest |
| C. | Co‐interest |
| D. | None of these. |
| Answer» A. Ex‐interest | |
| 316. |
As per ………..it is the statutory obligation of companies to prepare their final accounts. |
| A. | Sec 210 |
| B. | Sec 211 |
| C. | Sec 212 |
| D. | Sec 214 |
| Answer» A. Sec 210 | |
| 317. |
The Balance sheet of Companies are prepare in the form ………. |
| A. | Part I of Schedule V |
| B. | Part I of Schedule VI |
| C. | Part II of Schedule V |
| D. | Part II of Schedule VI |
| Answer» B. Part I of Schedule VI | |
| 318. |
The Profit and Loss Account of companies is prepared in the form …………. |
| A. | Part I of Schedule V |
| B. | Part I of Schedule VI |
| C. | Part II of Schedule V |
| D. | Part II of Schedule VI |
| Answer» D. Part II of Schedule VI | |
| 319. |
The dividend declared between two annual general meeting is called ………. |
| A. | Proposed Dividend |
| B. | Final Dividend |
| C. | Interim Dividend |
| D. | None of these |
| Answer» C. Interim Dividend | |
| 320. |
The net profit available for dividend distribution is called ………… |
| A. | Net Profit |
| B. | Surplus |
| C. | Divisible Profit |
| D. | Capital Profit |
| Answer» C. Divisible Profit | |
| 321. |
Dividend in the form of shares is called ……….. |
| A. | Interim Dividend |
| B. | Scrip Dividend |
| C. | Final Dividend |
| D. | None of these |
| Answer» B. Scrip Dividend | |
| 322. |
………is the dividend declared in the annual general meeting of shareholders. |
| A. | Proposed Dividend |
| B. | Final Dividend |
| C. | Interim Dividend |
| D. | None of these |
| Answer» B. Final Dividend | |
| 323. |
The dividend recommended by the Board of Directors is called……… |
| A. | Proposed Dividend |
| B. | Final Dividend |
| C. | Interim Dividend |
| D. | None of these |
| Answer» A. Proposed Dividend | |
| 324. |
Unclaimed dividend is shown in the balance sheet under the head …….. |
| A. | Reserves and Surplus |
| B. | Current Liabilities |
| C. | Loans and Advances |
| D. | Current Assets |
| Answer» B. Current Liabilities | |
| 325. |
……..is a charge against profit of the company |
| A. | Provision |
| B. | Reserves |
| C. | Surplus |
| D. | All of these |
| Answer» A. Provision | |
| 326. |
CDT stands for…. |
| A. | Company Direct Tax |
| B. | Corporate Dividend Tax |
| C. | Combined Direct Tax |
| D. | None of these |
| Answer» B. Corporate Dividend Tax | |
| 327. |
An item which may or may not be the liability of the company due to happening of certain event is………… |
| A. | Current Liability |
| B. | Fixed Liability |
| C. | Contingent Liabilit |
| D. | None of these |
| Answer» C. Contingent Liabilit | |
| 328. |
Advance tax paid is shown in the balance sheet under the head………. |
| A. | Current Liabilities |
| B. | Loans and Advances |
| C. | Fixed Assets |
| D. | None of these |
| Answer» B. Loans and Advances | |
| 329. |
Preliminary expenses not written off are shown in the balance sheet under the head… |
| A. | Current Assets |
| B. | Investments |
| C. | Current Liabilities |
| D. | Miscellaneous Expenditure |
| Answer» D. Miscellaneous Expenditure | |
| 330. |
If rate of proposed dividend is less than 10% of paid up capital, the rate of profit transferred to Reserve shall be……….. |
| A. | 10% |
| B. | 2.5% |
| C. | 5% |
| D. | Nil |
| Answer» D. Nil | |
| 331. |
………is concerned with accounting for amalgamation. |
| A. | AS – 10 |
| B. | AS – 12 |
| C. | AS – 14 |
| D. | AS – 16 |
| Answer» C. AS – 14 | |
| 332. |
In ……………, a new company is formed to take over the business of two or more existing companies which go into liquidation |
| A. | Amalgamation |
| B. | External reconstruction |
| C. | Absorption |
| D. | Internal reconstruction |
| Answer» A. Amalgamation | |
| 333. |
Amalgamation is done for …………. |
| A. | Eliminating competition |
| B. | Dominating the market |
| C. | Enjoying the benefits of large scale operation |
| D. | All of these |
| Answer» D. All of these | |
| 334. |
Company which is amalgamated into another company is called …………….. |
| A. | Transferor company |
| B. | Transferee Company |
| C. | Purchasing company |
| D. | Holding company |
| Answer» A. Transferor company | |
| 335. |
…………….is the company into which a company is amalgamated. |
| A. | Transferor company |
| B. | Transferee Company |
| C. | Subsidiary company |
| D. | Holding company |
| Answer» B. Transferee Company | |
| 336. |
Purchase consideration is payable to ………….. |
| A. | Creditors |
| B. | Shareholders |
| C. | Debenture holders |
| D. | All of these |
| Answer» B. Shareholders | |
| 337. |
In …..., a new company is formed to take over the business of an existing company which goes into liquidation. |
| A. | Amalgamation |
| B. | External reconstruction |
| C. | Absorption |
| D. | Internal reconstruction |
| Answer» B. External reconstruction | |
| 338. |
The purchase of an existing company which goes into liquidation by another existing company is known as ………….. |
| A. | Amalgamation |
| B. | External reconstruction |
| C. | Absorption |
| D. | Internal reconstruction |
| Answer» C. Absorption | |
| 339. |
Pooling of interest method is used in the case of …………….. |
| A. | Amalgamation in the nature of purchase |
| B. | External reconstruction |
| C. | Amalgamation in the nature of merger |
| D. | Internal reconstruction |
| Answer» C. Amalgamation in the nature of merger | |
| 340. |
Amalgamation adjustment account is opened in the books of Transferee Company to incorporate ………….. |
| A. | The assets o transferor company |
| B. | The statutory reserves of Transferor Company |
| C. | The liabilities of transferor company |
| D. | The statutory reserves of Transferee Company. |
| Answer» B. The statutory reserves of Transferor Company | |
| 341. |
Loss on realisation is transferred to ………….. |
| A. | Transferee Company Account |
| B. | Transferor Company Account |
| C. | Shareholders Account |
| D. | Creditors Account |
| Answer» C. Shareholders Account | |
| 342. |
………… is a statutory reserve |
| A. | General Reserve |
| B. | Export profit reserve |
| C. | Dividend equalization reserve |
| D. | Capital Reserve |
| Answer» B. Export profit reserve | |
| 343. |
Liquidation expenses paid by the transferee company are debited to ……… |
| A. | Liquidation expense Account |
| B. | Liquidators Account |
| C. | Preliminary expenses Account |
| D. | Goodwill Account |
| Answer» D. Goodwill Account | |
| 344. |
Under purchase method, the excess of net assets over purchase consideration is ………. |
| A. | Debited to goodwill account |
| B. | Credited to goodwill account |
| C. | Credited to capital reserve account |
| D. | Debited to capital reserve account |
| Answer» C. Credited to capital reserve account | |
| 345. |
X Ltd takes over Y Ltd and agrees to discharge debenture holders of Y Ltd at a premium of 5%. The premium should be debited to ……… |
| A. | Realisation Account |
| B. | Shareholders Account |
| C. | P&L Account |
| D. | None of these |
| Answer» A. Realisation Account | |
| 346. |
Which of the following is not a statutory reserve? |
| A. | General reserve |
| B. | Development rebate reserve |
| C. | Investment allowance reserve |
| D. | Workmen compensation fund |
| Answer» A. General reserve | |
| 347. |
Realisation Account is a ………….. |
| A. | Real Account |
| B. | Personal Account |
| C. | Nominal Account |
| D. | Suspense Account |
| Answer» C. Nominal Account | |
| 348. |
……….is not transferred to realisation account |
| A. | Goodwill |
| B. | Fictitious asset |
| C. | Trademark |
| D. | All of these |
| Answer» B. Fictitious asset | |
| 349. |
Trade liabilities include ……….. |
| A. | Creditors |
| B. | Debentures |
| C. | Bank overdraft |
| D. | All of these |
| Answer» A. Creditors | |
| 350. |
Purchase consideration includes ……….. |
| A. | Cash |
| B. | Shares |
| C. | Debentures |
| D. | All of these |
| Answer» D. All of these | |
| 351. |
In………., an existing company’s financial structure is reorganized without liquidating the existing company and forming a new company. |
| A. | Amalgamation |
| B. | External reconstruction |
| C. | Absorption |
| D. | Internal reconstruction |
| Answer» D. Internal reconstruction | |
| 352. |
Internal reconstruction is done due to ……….. |
| A. | Accumulated losses |
| B. | Shortage of working capital |
| C. | Large amount of fictitious assets |
| D. | All of these |
| Answer» D. All of these | |
| 353. |
In ………., the company does not loss its identity |
| A. | Amalgamation |
| B. | External reconstruction |
| C. | Absorption |
| D. | Internal reconstruction |
| Answer» D. Internal reconstruction | |
| 354. |
Internal reconstruction can be ……… |
| A. | Alteration of share capital |
| B. | Reduction of share capital |
| C. | Re‐organization of capital |
| D. | All of these |
| Answer» D. All of these | |
| 355. |
Capital of a company can be reduced by ………… |
| A. | Authorization of Articles |
| B. | Passing of a special resolution |
| C. | Confirmation of court |
| D. | All of these |
| Answer» D. All of these | |
| 356. |
Capital Reduction Account is a ……….. |
| A. | Nominal Account |
| B. | Permanent Account |
| C. | Temporary Account |
| D. | None of these |
| Answer» C. Temporary Account | |
| 357. |
The balance in Capital Reduction Account is transferred to ………… |
| A. | General Reserve |
| B. | Profit and loss Account |
| C. | Capital Reserve |
| D. | Goodwill Account |
| Answer» C. Capital Reserve | |
| 358. |
In internal reconstruction, increase in the value of fixed assets is credited to………. |
| A. | Capital reserve |
| B. | Share capital |
| C. | General reserve |
| D. | Capital reduction account |
| Answer» D. Capital reduction account | |
| 359. |
In case of subdivision of share capital, the amount of share capital………. |
| A. | Increases |
| B. | Decreases |
| C. | Does not change |
| D. | None of these |
| Answer» C. Does not change | |
| 360. |
In case of subdivision of share capital, the total number of shares ………. |
| A. | Increases |
| B. | Decreases |
| C. | Does not change |
| D. | None of these |
| Answer» A. Increases | |
| 361. |
In internal reconstruction, the existing company will be ………. |
| A. | Amalgamated |
| B. | Absorbed |
| C. | Liquidated |
| D. | None of these |
| Answer» D. None of these | |
| 362. |
In internal reconstruction, amount sacrificed by shareholders are credited to…….. |
| A. | Capital reserve |
| B. | General Reserve |
| C. | Capital reduction account |
| D. | None of these |
| Answer» C. Capital reduction account | |
| 363. |
When company converts its equity shares into capital stock, the account to be credited is … |
| A. | Equity share capital account |
| B. | Equity capital stock account |
| C. | No entry |
| D. | None of these |
| Answer» B. Equity capital stock account | |
| 364. |
Alteration of shares of smaller amounts into shares of larger amount is called ………. |
| A. | Subdivision of shares |
| B. | Consolidation of shares |
| C. | Cancellation of shares |
| D. | None of these |
| Answer» B. Consolidation of shares | |
| 365. |
In case of consolidation of share capital, the total number of shares …………. |
| A. | Increases |
| B. | Decreases |
| C. | Does not change |
| D. | None of these |
| Answer» B. Decreases | |
| 366. |
. ……..is called a factory of credit. |
| A. | Company |
| B. | Firm |
| C. | Bank |
| D. | None of these |
| Answer» C. Bank | |
| 367. |
Banking companies are governed in India by ………. |
| A. | Banking Regulation Act |
| B. | Indian Companies Act |
| C. | Reserve Bank of India Act |
| D. | All of these |
| Answer» A. Banking Regulation Act | |
| 368. |
CRR stands for ………… |
| A. | Current Reserve Ratio |
| B. | Capital Reserve Ratio |
| C. | Cash Reserve Ratio |
| D. | Capital Redemption Ratio |
| Answer» C. Cash Reserve Ratio | |
| 369. |
SLR stands for …………… |
| A. | Savings Level Ratio |
| B. | Statutory Liquidity Ratio |
| C. | Standard Liquidity Ratio |
| D. | None of these |
| Answer» B. Statutory Liquidity Ratio | |
| 370. |
The method of rapidly posting entries in the books of banks is called as ………. |
| A. | Single Entry |
| B. | Cash Method |
| C. | Slip System |
| D. | None of these |
| Answer» C. Slip System | |
| 371. |
The P&L A/c of Banking Companies are prepared as per ………….of Banking Regulation Act. |
| A. | Form A of Schedule III |
| B. | Form B of Schedule III |
| C. | Form A of Schedule VI |
| D. | Form B of Schedule VI |
| Answer» B. Form B of Schedule III | |
| 372. |
…….of profit is transferred to statutory reserves. |
| A. | 10% |
| B. | 20% |
| C. | 25% |
| D. | 30% |
| Answer» C. 25% | |
| 373. |
Banks show the provision for income tax under the head ………. |
| A. | Contingent liabilities |
| B. | Deposits |
| C. | Other liabilities and provisions |
| D. | Borrowings |
| Answer» C. Other liabilities and provisions | |
| 374. |
Rebate on bills discounted is ……….. |
| A. | An income accrued but not received |
| B. | A liability |
| C. | An expense |
| D. | Income received in advance |
| Answer» D. Income received in advance | |
| 375. |
NPA stands for…………. |
| A. | Non‐ Performing Assets |
| B. | Normal Performing Assets |
| C. | National Performing Asset |
| D. | None of these |
| Answer» A. Non‐ Performing Assets | |
| 376. |
Schedule 1 is concerned with …………. |
| A. | Cash and balance with RBI |
| B. | Capital |
| C. | Reserves and Surplus |
| D. | Investments |
| Answer» B. Capital | |
| 377. |
………… is shown under Schedule 15. |
| A. | Interest earned |
| B. | Profit |
| C. | Interest Expended |
| D. | Appropriations |
| Answer» C. Interest Expended | |
| 378. |
Acceptance, endorsements and other obligations come under the head… |
| A. | Provisions and Contingencies |
| B. | Contingent liabilities |
| C. | Deposits |
| D. | Borrowings |
| Answer» B. Contingent liabilities | |
| 379. |
Assets are NPAs for a period not exceeding 12 months are called …………. |
| A. | Standard Assets |
| B. | Substandard Assets |
| C. | Doubtful Assets |
| D. | Loss Assets |
| Answer» B. Substandard Assets | |
| 380. |
Assets are NPAs for a period exceeding 12 months are called …………. |
| A. | Standard Assets |
| B. | Substandard Assets |
| C. | Doubtful Assets |
| D. | Loss Assets |
| Answer» C. Doubtful Assets | |
| 381. |
………is a form of agreement between two parties in which one party agrees to make good for loss of another. |
| A. | Contract |
| B. | Insurance |
| C. | Banking |
| D. | Mutual fund |
| Answer» B. Insurance | |
| 382. |
The agreement of insurance is called as ……….. |
| A. | Policy |
| B. | Premium |
| C. | Annuity |
| D. | None of these |
| Answer» A. Policy | |
| 383. |
The consideration in insurance for covering the risk is called …………. |
| A. | Claim |
| B. | Premium |
| C. | Annuity |
| D. | None of these |
| Answer» B. Premium | |
| 384. |
……………is the party who undertakes the risk in insurance. |
| A. | Insurer |
| B. | Assurer |
| C. | Underwriter |
| D. | All of these |
| Answer» D. All of these | |
| 385. |
The party whose risk is covered in insurance is known as ………. |
| A. | Insurer |
| B. | Insured |
| C. | Underwriter |
| D. | None of these |
| Answer» B. Insured | |
| 386. |
In …………., the insurer agrees to pay a certain sum of money to the policyholder either on his death or a certain age, which ever is less. |
| A. | Fire Insurance |
| B. | Marine Insurance |
| C. | Burglary Insurance |
| D. | Life Insurance |
| Answer» D. Life Insurance | |
| 387. |
General Insurance includes ……………. |
| A. | Fire Insurance |
| B. | Marine Insurance |
| C. | Burglary Insurance |
| D. | All of these |
| Answer» D. All of these | |
| 388. |
LIC was nationalized in ………….. |
| A. | 1935 |
| B. | 1950 |
| C. | 1956 |
| D. | 1964 |
| Answer» C. 1956 | |
| 389. |
Insurance business in India is regulated by …………. |
| A. | LIC |
| B. | IRDA |
| C. | RBI |
| D. | SEBI |
| Answer» B. IRDA | |
| 390. |
Under …………., the sum assured is given to the beneficiary only on death of policyholder. |
| A. | Whole Life Policy |
| B. | Endowment Policy |
| C. | Annuity |
| D. | None of these |
| Answer» A. Whole Life Policy | |
| 391. |
………..is the amount payable to the insured on the happening of event. |
| A. | Premium |
| B. | Annuity |
| C. | Claim |
| D. | Policy |
| Answer» C. Claim | |
| 392. |
An annual payment which an insurer guarantees to pay for lump sum money received in the beginning is called …………. |
| A. | Premium |
| B. | Annuity |
| C. | Claim |
| D. | Policy |
| Answer» B. Annuity | |
| 393. |
The amount given to the policyholder due to his inability of paying further premium is called ………….. |
| A. | Annuity |
| B. | Bonus |
| C. | Surrender value |
| D. | Claim |
| Answer» C. Surrender value | |
| 394. |
…………..is an agreement between two insurance companies whereby one transfers a part of risk to other. |
| A. | Reinsurance |
| B. | Sub insurance |
| C. | Shared Policy |
| D. | None of these |
| Answer» A. Reinsurance | |
| 395. |
Revenue Account is also called …………. |
| A. | Shareholders’ Account |
| B. | Policyholders’ Account |
| C. | Creditors’ Account |
| D. | None of these |
| Answer» B. Policyholders’ Account | |
| 396. |
Valuation balance sheet is prepared by ……………business. |
| A. | Fire Insurance |
| B. | Marine Insurance |
| C. | Life Insurance |
| D. | All of these |
| Answer» C. Life Insurance | |
| 397. |
The commission earned by insurance companies from others for giving them business under reinsurance is called ………………… |
| A. | Commission on reinsurance accepted |
| B. | Agents’ commission |
| C. | Commission on reinsurance ceded |
| D. | None of these |
| Answer» C. Commission on reinsurance ceded | |
| 398. |
The commission given by insurance companies to others for receiving business under reinsurance is called ………………… |
| A. | Commission on reinsurance accepted |
| B. | Agents’ commission |
| C. | Commission on reinsurance ceded |
| D. | None of these |
| Answer» A. Commission on reinsurance accepted | |
| 399. |
Profit and Loss Account of General Insurance Companies are prepared in ………… |
| A. | Form A‐PL |
| B. | Form B‐RA |
| C. | Form B‐PL |
| D. | Form B‐BS |
| Answer» C. Form B‐PL | |
| 400. |
The principle of subrogation is applicable to…………… |
| A. | Fire Insurance |
| B. | Marine Insurance |
| C. | Burglary Insurance |
| D. | All of these |
| Answer» D. All of these | |
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