McqMate
Chapters
| 401. |
……….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 | |
| 402. |
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 | |
| 403. |
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 | |
| 404. |
Section ….. of the Companies Act deals with issue of bonus shares |
| A. | 63 |
| B. | 73 |
| C. | 68 |
| D. | 70 |
| Answer» A. 63 | |
| 405. |
When 4,000 equity shares of Rs.10 each is bought back at Rs.20 per share, the amount to be transferred to Capital Redemption Reserve is |
| A. | 80,000 |
| B. | 40,000 |
| C. | 4,000 |
| D. | none |
| Answer» B. 40,000 | |
| 406. |
A contract that evidences a residual interest in the assets of an undertaking after deducting all its liabilities is called |
| A. | bilateral contract |
| B. | equity instrument |
| C. | standard instrument |
| D. | none |
| Answer» B. equity instrument | |
| 407. |
Bonus shares can be issued only on getting approval of |
| A. | articles of the company |
| B. | board of directors |
| C. | shareholders |
| D. | all |
| Answer» D. all | |
| 408. |
Unsecured debentures are otherwise known as……. Debentures |
| A. | simple |
| B. | mortgage |
| C. | complex |
| D. | none |
| Answer» A. simple | |
| 409. |
Ind AS 28 deal with…….. |
| A. | investments in association and joint ventures |
| B. | investment in parent company |
| C. | investment in subsidiary company |
| D. | investment in foreign company |
| Answer» A. investments in association and joint ventures | |
| 410. |
The new Electricity Act was passed in the year… |
| A. | 2003 |
| B. | 2008 |
| C. | 2004 |
| D. | 2000 |
| Answer» A. 2003 | |
| 411. |
IFRS….. deals with business combination |
| A. | IFRS 4 |
| B. | IFRS 3 |
| C. | IFRS 6 |
| D. | none |
| Answer» B. IFRS 3 | |
| 412. |
The principle of subrogation is applicable to…………… |
| A. | Fire Insurance |
| B. | Marine Insurance |
| C. | Burglary Insurance |
| D. | All of the |
| Answer» D. All of the | |
| 413. |
Capital redemption reserve and security premium can be utilised for issuing ………bonus shares |
| A. | fully paid |
| B. | partly paid |
| C. | fully paid or partly paid |
| D. | none |
| Answer» A. fully paid | |
| 414. |
In case of buyback of shares by a listed company, the letter of offer to the shareholders shall be dispatched not earlier than – |
| A. | 10 days from its submission to the SEBI in draft form |
| B. | 15 days from its submission to the SEBI in draft form |
| C. | 21 days from its submission to the SEBI in draft form |
| D. | 30 days from its submission to the SEBI in draft form |
| Answer» C. 21 days from its submission to the SEBI in draft form | |
| 415. |
Under double account system, fixed assets are shown at….. |
| A. | original cost |
| B. | historical cost |
| C. | future cost |
| D. | none |
| Answer» A. original cost | |
| 416. |
Own debenture account will appear on the …… side of B/S |
| A. | Liability |
| B. | asset |
| C. | both side |
| D. | none |
| Answer» B. asset | |
| 417. |
The most important income of a bank is |
| A. | commission |
| B. | interest |
| C. | registration fee |
| D. | locker rent |
| Answer» B. interest | |
| 418. |
Under Ind AS 103, assets and liabilities are recorded at |
| A. | fair value |
| B. | book value |
| C. | intrinsic value |
| D. | none |
| Answer» A. fair value | |
| 419. |
When the directors refund the fees already received by them,……. a/c is credited. |
| A. | cash |
| B. | Capital reduction |
| C. | directors |
| D. | fees |
| Answer» B. Capital reduction | |
| 420. |
In the case of marine hull insurance, reserve for unexpired risk is to be maintained @....... %of net premium |
| A. | 50% |
| B. | 80% |
| C. | 100% |
| D. | 20% |
| Answer» C. 100% | |
| 421. |
The cost of replacing an asset in its original condition is known as…… |
| A. | replacement cost |
| B. | revaluation cost |
| C. | revenue cost |
| D. | reconstruction cost |
| Answer» A. replacement cost | |
| 422. |
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 | |
| 423. |
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 Sch edule VI |
| D. | Form B of Schedule VI |
| Answer» B. Form B of Schedule III | |
| 424. |
…….. deals with separate financial statements. |
| A. | Ind AS 110 |
| B. | Ind AS 100 |
| C. | Ind AS 112 |
| D. | Ind AS 120 |
| Answer» A. Ind AS 110 | |
| 425. |
The pre- acquisition loss of subsidiary should be deducted from …….. while calculating net assets |
| A. | share capital |
| B. | equity share capital |
| C. | debentures |
| D. | none |
| Answer» B. equity share capital | |
| 426. |
Ind AS ……. Deals with share based payments |
| A. | 102 |
| B. | 110 |
| C. | 101 |
| D. | 105 |
| Answer» A. 102 | |
| 427. |
The accounting concept that is principally used to classify leases into operating and finance is……. |
| A. | substance over from |
| B. | prudence |
| C. | neutrality |
| D. | completeness |
| Answer» A. substance over from | |
| 428. |
Buy back of equity shares is a process of capital …….. |
| A. | reduction |
| B. | restructuring |
| C. | control |
| D. | none |
| Answer» B. restructuring | |
| 429. |
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 | |
| 430. |
………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 | |
| 431. |
The buy back of shares is also known as …….. |
| A. | corporate redemption |
| B. | corporate equity repurchase |
| C. | corporate equity valuation |
| D. | none |
| Answer» B. corporate equity repurchase | |
| 432. |
The buy back of shares may be done |
| A. | at par |
| B. | at discount |
| C. | at premium |
| D. | all the above |
| Answer» D. all the above | |
| 433. |
Interest on debenture is …. |
| A. | adjustment of profit |
| B. | appropriation of profit |
| C. | charge on profit |
| D. | none |
| Answer» C. charge on profit | |
| 434. |
After all the debentures are redeemed the balance in the sinking fund is transferred to |
| A. | General reserve |
| B. | statutory reserve |
| C. | both A and B |
| D. | none |
| Answer» A. General reserve | |
| 435. |
Debenture is document which creates a…… |
| A. | debt |
| B. | credit |
| C. | both A and B |
| D. | none |
| Answer» A. debt | |
| 436. |
When own debentures are cancelled, any profit on cancellation is transferred to |
| A. | general reserve |
| B. | capital reserve |
| C. | p&laccount |
| D. | none |
| Answer» B. capital reserve | |
| 437. |
Profit not available for dividend includes |
| A. | CRR |
| B. | P&L account credit balance |
| C. | security premium |
| D. | None |
| Answer» B. P&L account credit balance | |
| 438. |
All the …… profits are not available for the purpose of redemption of preference shares |
| A. | revenue |
| B. | capital |
| C. | Both A and B |
| D. | none |
| Answer» B. capital | |
| 439. |
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 | |
| 440. |
The principle of subrogation is applicable to…………… |
| A. | Fire Insurance |
| B. | Marine Insurance |
| C. | Burglary Insurance |
| D. | All of thes |
| Answer» D. All of thes | |
| 441. |
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 | |
| 442. |
The security premium account is shown in the balance sheet under the head………. |
| A. | Share capital |
| B. | Reserves & Surplus |
| C. | Secured loans |
| D. | Current liabilit |
| Answer» B. Reserves & Surplus | |
| 443. |
……..should be deducted from the share capital to determine the paid up cap ital. |
| A. | Security premium |
| B. | Calls in advance |
| C. | Calls in arrears |
| D. | Discount on issue |
| Answer» C. Calls in arrears | |
| 444. |
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 | |
| 445. |
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 | |
| 446. |
Debentures can be redeemed out of ………. |
| A. | Fresh issue |
| B. | Capital |
| C. | Profit |
| D. | All of these |
| Answer» D. All of these | |
| 447. |
When preference shares are redeemed, it amounts to |
| A. | increase in share capital |
| B. | decrease in share capital |
| C. | Both A and B |
| D. | none |
| Answer» D. none | |
| 448. |
Capital redemption reserve is created…. |
| A. | out of security premium |
| B. | to meet legal requirements |
| C. | Voluntarily |
| D. | none |
| Answer» B. to meet legal requirements | |
| 449. |
No company limited by shares shall issue any preference share which is redeemable after the expiry of …….. years from the date of issue. |
| A. | 20 |
| B. | 15 |
| C. | 10 |
| D. | 25 |
| Answer» A. 20 | |
| 450. |
Under Double account system, the balance sheet is prepared in ……parts |
| A. | three |
| B. | two |
| C. | one |
| D. | none |
| Answer» B. two | |
| 451. |
In case of electricity companies, contingency reserve is created until it amounts to ….. of the original cost of the fixed assets. |
| A. | 5% |
| B. | 6% |
| C. | 4% |
| D. | 8% |
| Answer» A. 5% | |
| 452. |
The profit and loss account under double account system is termed as….. |
| A. | revenue account |
| B. | income and expenditure account |
| C. | P&L account |
| Answer» A. revenue account | |
| 453. |
General insurance policies are generally taken for |
| A. | one year |
| B. | two years |
| C. | three years |
| D. | none |
| Answer» A. one year | |
| 454. |
IRDA Act came into effect in |
| A. | 1938 |
| B. | 1999 |
| C. | 2000 |
| D. | none |
| Answer» B. 1999 | |
| 455. |
Reserve for unexpired risk is shown under |
| A. | reserves and surplus |
| B. | current liabilities |
| C. | provisions |
| D. | none |
| Answer» C. provisions | |
| 456. |
The Insurance Act came in to effect in ….. |
| A. | 1956 |
| B. | 1998 |
| C. | 1938 |
| D. | 2000 |
| Answer» C. 1938 | |
| 457. |
The fixed assets of an insurance company are shown in |
| A. | Schedule 6 |
| B. | Schedule 7 |
| C. | Schedule 8 |
| D. | none |
| Answer» D. none | |
| 458. |
Banks show the provisions for income tax under the head |
| A. | contingency accounts |
| B. | contingent liability |
| C. | other liabilities and provisions |
| D. | borrowings |
| Answer» C. other liabilities and provisions | |
| 459. |
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 | |
| 460. |
Grants related to depreciable assets should be recognised as……., in the period in which their depreciation is charged |
| A. | income |
| B. | appropriaton |
| C. | provisions |
| D. | none |
| Answer» A. income | |
| 461. |
….. lease is a lease that transfers substantially all the risks and rewards incidental o ownership of assets |
| A. | finance |
| B. | operating |
| C. | advanced |
| D. | maturity |
| Answer» A. finance | |
| 462. |
……….. is called factory of credit |
| A. | company |
| B. | bank |
| C. | firm |
| D. | none |
| Answer» B. bank | |
| 463. |
Banking companies are governed in India by |
| A. | Banking Regulation Act |
| B. | Indian Companies Act |
| C. | RBI Act |
| D. | all the |
| Answer» A. Banking Regulation Act | |
| 464. |
Schedule 1 is concerned with |
| A. | Capital |
| B. | Reserves and surplus |
| C. | interest earned |
| D. | none |
| Answer» A. Capital | |
| 465. |
Interest on debentures is calculated on ______. |
| A. | Issue price. |
| B. | redeemable price |
| C. | face value |
| D. | market price. |
| Answer» C. face value | |
| 466. |
Transfer to capital redemption reserve can be made from ____. |
| A. | capital reserve. |
| B. | forfeited shares. |
| C. | general reserve |
| D. | securities |
| Answer» C. general reserve | |
| 467. |
Rights shares are those shares which are __________. |
| A. | first offered to the existing shareholders |
| B. | issued by a newly formed company. |
| C. | issued to the directors of the company. |
| D. | issued to holders of convertible debentures. |
| Answer» A. first offered to the existing shareholders | |
| 468. |
In subdivision of shares, …… capital does not change |
| A. | Paid up |
| B. | Issued |
| C. | unissued |
| D. | none |
| Answer» A. Paid up | |
| 469. |
No journal entry is required for the cancellation of ………. Share capital |
| A. | Unissued |
| B. | paid up |
| C. | Subscribed |
| D. | none |
| Answer» A. Unissued | |
| 470. |
All business combinations are accounted for by applying the …….. method |
| A. | acquisition method |
| B. | Equity method |
| C. | both A and B |
| D. | none |
| Answer» A. acquisition method | |
| 471. |
A term loan will be treated as NPA if interest or instalment and principal remain overdue for a period more than ……. Days |
| A. | 75 |
| B. | 50 |
| C. | 90 |
| D. | 100 |
| Answer» C. 90 | |
| 472. |
Which of the following does not include under the head other assets |
| A. | silver |
| B. | interest accrued |
| C. | gold |
| D. | inter office adjustment |
| Answer» C. gold | |
| 473. |
………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 | |
| 474. |
Clear profit is the difference between |
| A. | reasonable return and appropriations |
| B. | total income and expenditure |
| C. | reasonable return and total profit |
| D. | none |
| Answer» B. total income and expenditure | |
| 475. |
Surplus of electricity company is limited to |
| A. | 20% of capital base |
| B. | 20% of total assets |
| C. | 20% of clear profit |
| D. | 20% of reasonable return |
| Answer» D. 20% of reasonable return | |
| 476. |
In the case of railway companies rent on leased lines is shown on |
| A. | debit side of revenue A/c |
| B. | credit side of revenue A/c |
| C. | debit side of net revenue A/c |
| D. | credit side of net revenue A/c |
| Answer» C. debit side of net revenue A/c | |
| 477. |
The acquiree in a business combination is also called a….. company |
| A. | subsidiary |
| B. | parent |
| C. | holding |
| D. | controlling |
| Answer» A. subsidiary | |
| 478. |
When 8,00,000 shares of Rs.10 each is converted in to 80,000 shares of Rs.100 each, it is a case of ……… |
| A. | sub division |
| B. | capital reduction |
| C. | consolidation |
| D. | none |
| Answer» C. consolidation | |
| 479. |
Section …… of the Companies Act 2013 deals with the issue of right shares |
| A. | 62 |
| B. | 63 |
| C. | 64 |
| D. | 68 |
| Answer» A. 62 | |
| 480. |
A company formed and registered under ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐Act 1956. |
| A. | Partnership |
| B. | Companies |
| C. | Banking companies |
| D. | none of these. |
| Answer» B. Companies | |
| 481. |
A ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ Company puts restriction on the transfer of its shares. |
| A. | Private company |
| B. | Public company |
| C. | Limited companies |
| D. | None of these. |
| Answer» A. Private company | |
| 482. |
A new company cannot issue shares at‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐. |
| A. | Premium |
| B. | Discount |
| C. | Par |
| D. | None of these. |
| Answer» B. Discount | |
| 483. |
‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is an invitation made by the company to the public for subscribing its shares. |
| A. | Memorandum of association |
| B. | Articles of association |
| C. | Prospectus |
| D. | Table A. |
| Answer» C. Prospectus | |
| 484. |
The maximum extent to which a company can raise share‐capital is called ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ capital. |
| A. | Subscribed |
| B. | Authorized |
| C. | Called |
| D. | Reserve capital. |
| Answer» B. Authorized | |
| 485. |
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ Shares carry a fixed rate of dividend. |
| A. | Preference |
| B. | Equity |
| C. | Deferred |
| D. | Sweat equity. |
| Answer» A. Preference | |
| 486. |
Share application account is in the nature of ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ account. |
| A. | Personal |
| B. | Real |
| C. | Nominal |
| D. | None of these. |
| Answer» A. Personal | |
| 487. |
The discount on the issue of shares should not exceed ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ normally. |
| A. | 10% |
| B. | 20% |
| C. | 30% |
| D. | None of these. |
| Answer» A. 10% | |
| 488. |
Profit on the re‐issue of forfeited shares is transferred to ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ account. |
| A. | General reserve |
| B. | Capital reserve |
| C. | Capital redemption reserve |
| D. | none of these. |
| Answer» B. Capital reserve | |
| 489. |
Capital reserve will appear on the liability side of the balance sheet under the head ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐. |
| A. | Reserves & surpluses |
| B. | Secured loan |
| C. | Unsecured loan |
| D. | Current liabilities. |
| Answer» A. Reserves & surpluses | |
| 490. |
Profit on re‐issue of forfeited shares will appear on the ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ side of the balance sheet. |
| A. | Asset side |
| B. | Liability side |
| C. | Debit side |
| D. | Credit side. |
| Answer» B. Liability side | |
| 491. |
Debentures are normally paid back after the expiry of the period this is technically called ‐‐‐‐‐‐‐‐‐‐‐‐. |
| A. | Renewal |
| B. | Redemption |
| C. | Conversion |
| D. | Forfeiture |
| Answer» B. Redemption | |
| 492. |
Redemption of debentures means ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ |
| A. | Creation of liability |
| B. | Discharge of liability |
| C. | Concession of liability |
| D. | None of these. |
| Answer» B. Discharge of liability | |
| 493. |
Premium on redemption of debentures account is in the nature of ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ |
| A. | Personal account |
| B. | Real account |
| C. | Nominal account |
| D. | None of these. |
| Answer» C. Nominal account | |
| 494. |
After all the debentures are redeemed; the balance in the sinking fund account is transferred to ‐‐‐‐‐‐ ‐‐‐‐‐‐‐. |
| A. | Capital reserve |
| B. | General reserve |
| C. | Profit and loss account |
| D. | Capital redemption reserve. |
| Answer» B. General reserve | |
| 495. |
When own debentures are cancelled, any profit on cancellation is transferred to ‐‐‐‐‐‐‐‐‐‐‐‐‐‐ |
| A. | Profit and Loss Account |
| B. | General reserve |
| C. | Capital Reserve |
| D. | Sinking fund |
| Answer» C. Capital Reserve | |
| 496. |
For the same purchase price profit on cancellation of debentures is more when purchase on ‐‐‐‐‐‐‐‐‐‐‐ ‐‐ basis. |
| A. | Ex‐Interest |
| B. | Cum‐Interest |
| C. | Own Debentures basis |
| D. | None of these. |
| Answer» B. Cum‐Interest | |
| 497. |
When debentures are redeemed from out of profits an equal amount is transferred to ‐‐‐‐‐‐‐‐‐‐‐‐ account. |
| A. | Capital reserve |
| B. | Capital Redemption Reserve |
| C. | Debenture redemption reserve |
| D. | General Reserve. |
| Answer» C. Debenture redemption reserve | |
| 498. |
When debentures are redeemed in annual installments the redemption is known as ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐. |
| A. | Redemption by drawing a lot |
| B. | Redemption out of capital |
| C. | Redemption out of profit |
| D. | Redemption by conversion. |
| Answer» A. Redemption by drawing a lot | |
| 499. |
a preference share is one which enjoys a preferential right regarding payment of ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ |
| A. | Dividend |
| B. | Share capital |
| C. | Interest |
| D. | Debentures. |
| Answer» B. Share capital | |
| 500. |
The issue of shares at discount provided the discount does not exceed 10% as specified in ‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐ of the companies Act. |
| A. | Section80 |
| B. | Section 81 |
| C. | Section 79 |
| D. | Section 76 |
| Answer» C. Section 79 | |
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