McqMate
Chapters
| 501. |
The share premium account can be utilized to write off the ‐‐‐‐‐‐‐‐‐‐‐‐‐ expense of the company. |
| A. | Printing expenses |
| B. | Establishment expenses |
| C. | Preliminary expenses |
| D. | None of these. |
| Answer» C. Preliminary expenses | |
| 502. |
Which of the following not the uses of share premium. |
| A. | Issue of partly paid bonus shares |
| B. | Issue of fully paid bonus shares |
| C. | Write off preliminary expense |
| D. | Write off expenses on the issue of shares. |
| Answer» B. Issue of fully paid bonus shares | |
| 503. |
When shares originally issued at discount are forfeited, the discount in respect of them is to be ‐‐‐‐‐‐‐ |
| A. | Debited |
| B. | Credited |
| C. | Paid |
| D. | None of these |
| Answer» B. Credited | |
| 504. |
Once the share premium account is credited the same, if the premium is not received. |
| A. | Cannot be debited |
| B. | Cannot be credited |
| C. | Can be debited |
| D. | Can be credited |
| Answer» C. Can be debited | |
| 505. |
Dividend is payable on the ‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of the shares. |
| A. | Paid up value |
| B. | Called up value |
| C. | Calls in advance |
| D. | None of these. |
| Answer» A. Paid up value | |
| 506. |
Share can be forfeited for ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐. |
| A. | For non‐payment of call money |
| B. | For failure to attend meetings |
| C. | Failure to repay the loan |
| D. | None of these. |
| Answer» A. For non‐payment of call money | |
| 507. |
When shares are forfeited the share capital account is debited by ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ |
| A. | Calls‐in‐arrears |
| B. | Called up amount |
| C. | Paid up amount |
| D. | Subscribed amount |
| Answer» C. Paid up amount | |
| 508. |
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ have priority over equity as to the receipt of individuals and as to assets in the event of liquidation. |
| A. | Equity shares |
| B. | Deferred shares |
| C. | Preference shares |
| D. | Sweat equity shares |
| Answer» C. Preference shares | |
| 509. |
Preference shares cannot be redeemed unless they are ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ |
| A. | Partly paid |
| B. | Fully paid |
| C. | Twice paid up |
| D. | One by two paid up. |
| Answer» B. Fully paid | |
| 510. |
Called up capital minus calls in appear is ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ |
| A. | Subscribed capital |
| B. | Registered capital |
| C. | Paid up capital |
| D. | Uncalled capital. |
| Answer» C. Paid up capital | |
| 511. |
The minimum amount of capital which must be subscribed by the public before a public company can allot shares is ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ |
| A. | Allotment money |
| B. | Minimum subscription |
| C. | Subscribed capital |
| D. | Issued capital. |
| Answer» B. Minimum subscription | |
| 512. |
Find the odd one:‐ |
| A. | Subscribed capital |
| B. | Authorized capital |
| C. | Registered capital |
| D. | Nominal capital |
| Answer» A. Subscribed capital | |
| 513. |
When 500 shares of Rs. 10 each on which Rs.3 on final call is not paid, share forfeited account is credited with ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ |
| A. | Rs.1,500 |
| B. | Rs.3,500 |
| C. | Rs.5,000 |
| D. | Rs.2,000 |
| Answer» B. Rs.3,500 | |
| 514. |
If one share is allotted for every five shares applied, an applicant for 1,000 shares will get ‐‐‐‐‐‐‐‐‐‐‐ |
| A. | 200 shares |
| B. | 5000 shares |
| C. | 5 shares |
| D. | 6 shares. |
| Answer» A. 200 shares | |
| 515. |
If a share of Rs.10 is issued at a premium of 20%, the issue price is ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ |
| A. | Rs.8 |
| B. | Rs.12 |
| C. | Rs.2 |
| D. | None of these. |
| Answer» B. Rs.12 | |
| 516. |
Right issue means issue of shares to ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ |
| A. | Existing debenture holder |
| B. | Existing share holders |
| C. | Promoters |
| D. | Institutional investors |
| Answer» B. Existing share holders | |
| 517. |
Find the odd one:‐ |
| A. | To issue fully paid bonus shares |
| B. | To Write off preliminary expenses |
| C. | To distribute dividend in cash |
| D. | To pay Premium payable on redemption of shares or debentures. |
| Answer» C. To distribute dividend in cash | |
| 518. |
When shares are oversubscribed, allotment is made on ‐‐‐‐‐‐‐‐‐‐‐‐‐‐ basis |
| A. | First come first served |
| B. | Pro‐data |
| C. | Total |
| D. | None of these. |
| Answer» B. Pro‐data | |
| 519. |
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ capital of a company can be called up only in the event of winding up. |
| A. | Reserve |
| B. | Authorized |
| C. | Registered |
| D. | Nominal |
| Answer» A. Reserve | |
| 520. |
Debentures constitute ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ capital of the company |
| A. | Owned |
| B. | Borrowed |
| C. | Reserve |
| D. | None of these |
| Answer» B. Borrowed | |
| 521. |
Debenture holders are ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of a company. |
| A. | Owners |
| B. | Creditors |
| C. | Debtors |
| D. | None of these |
| Answer» B. Creditors | |
| 522. |
Generally, debentures are |
| A. | Unsecured |
| B. | Secured |
| C. | Converted |
| D. | Bearer |
| Answer» B. Secured | |
| 523. |
Redemption of debentures means ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of liability on debentures. |
| A. | Conversion |
| B. | Discharge |
| C. | Creation |
| D. | None of these |
| Answer» B. Discharge | |
| 524. |
Debentures issued with a fixed or a floating charge on the assets of the company are called ‐‐‐‐‐‐‐‐‐‐‐ debentures |
| A. | Bearer |
| B. | Secured |
| C. | Simple |
| D. | Unsecured |
| Answer» B. Secured | |
| 525. |
Debentures repayable after a fixed period of a time are called ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ debentures. |
| A. | Convertible |
| B. | Redeemable |
| C. | Bearer |
| D. | Secured |
| Answer» B. Redeemable | |
| 526. |
When charge is created against specific assets of the company, it is called ‐‐‐‐‐‐‐‐‐‐‐‐‐ charge. |
| A. | Floating |
| B. | Fixed |
| C. | Second |
| D. | None of these. |
| Answer» B. Fixed | |
| 527. |
Unsecured debentures are otherwise known as ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ debentures. |
| A. | Simple |
| B. | Mort age |
| C. | Bearer |
| D. | None of these. |
| Answer» A. Simple | |
| 528. |
Debenture is a written ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of debt of a company |
| A. | Articles |
| B. | Acknowledgement |
| C. | Payment |
| D. | None of these. |
| Answer» B. Acknowledgement | |
| 529. |
Premium on issue of debentures is a ‐‐‐‐‐‐‐‐‐‐‐. |
| A. | Capital loss |
| B. | Capital profit |
| C. | Revenue profit |
| D. | Revenue loss. |
| Answer» B. Capital profit | |
| 530. |
Capital Redemption Reserve Account and Securities Premium Account can be only for issuing fully paid Bonus Shares and not for making partly paid shares into ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ |
| A. | Fully paid |
| B. | Partly paid |
| C. | Converted |
| D. | None of these. |
| Answer» A. Fully paid | |
| 531. |
Bonus issue can be made out of securities premium collected in ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ |
| A. | Cash only |
| B. | In kind |
| C. | Partly in cash and in kind |
| D. | None of these. |
| Answer» A. Cash only | |
| 532. |
Bonus issue is permitted only if all partly paid shares are made‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ |
| A. | Fully paid shares |
| B. | ¾ Fully paid |
| C. | ¼ Fully paid |
| D. | None of these |
| Answer» A. Fully paid shares | |
| 533. |
Bonus issues ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ even when the shares are partly paid. |
| A. | Can be made |
| B. | Cannot be made |
| C. | Both of them. |
| D. | None of these |
| Answer» A. Can be made | |
| 534. |
In order to know ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ value of shares, it is necessary to know the net value of the assets of the company. |
| A. | Intrinsic value |
| B. | Yield value |
| C. | Fair value |
| D. | None of these |
| Answer» A. Intrinsic value | |
| 535. |
If the actual profits are more than the expected normal profits, the difference is termed as ‐‐‐‐‐‐‐ |
| A. | Simple profit |
| B. | Average profit |
| C. | We gated Average profit |
| D. | Super profit |
| Answer» D. Super profit | |
| 536. |
Intrinsic value of share is calculated by dividing the ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of the company by the number of shares |
| A. | Market value of assets |
| B. | Net asset |
| C. | Original cost of asset |
| D. | None of these |
| Answer» B. Net asset | |
| 537. |
Fair value of a share in the simple average of intrinsic value and ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ value of a share |
| A. | Nominal value |
| B. | Face value |
| C. | Market value |
| D. | Yield value. |
| Answer» D. Yield value. | |
| 538. |
In the calculation of ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐, past profits will have to be adjusted, in order to dertemine the future expected profits. |
| A. | Shares |
| B. | Market value |
| C. | Fair value |
| D. | Goodwill |
| Answer» A. Shares | |
| 539. |
Fair value of a share is the ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ average of intrinsic value and yield value. |
| A. | Weighted |
| B. | Simple |
| C. | Multiple |
| D. | None of these. |
| Answer» B. Simple | |
| 540. |
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of the following is not concerned with the valuation of goodwill. |
| A. | Earning capacity method |
| B. | Super profit method |
| C. | Average profit method |
| D. | None of these |
| Answer» A. Earning capacity method | |
| 541. |
In the balance sheet forfeited shares amount is to be added to ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐. |
| A. | Share capital |
| B. | Reserve |
| C. | Surplus |
| D. | None of these |
| Answer» A. Share capital | |
| 542. |
Dividend declared between two Annual General Meetings. |
| A. | Final dividend |
| B. | Proposed dividend |
| C. | Unclaimed dividend |
| D. | Interim dividend |
| Answer» D. Interim dividend | |
| 543. |
When the proposed dividend is more than 20 %, an amount equal to ‐‐‐‐‐‐‐‐‐‐‐ of the current profits must be transferred to reserve. |
| A. | 5% |
| B. | 7.5% |
| C. | 2.5% |
| D. | 10% |
| Answer» D. 10% | |
| 544. |
Share holders cannot increase the rate of ‐‐‐‐‐‐‐‐‐ recomened by the Boared of Directors. |
| A. | Interest |
| B. | Profit |
| C. | Dividend |
| D. | None of these. |
| Answer» C. Dividend | |
| 545. |
Advance payment of tax should be shown on the ‐‐‐‐‐‐‐‐‐‐‐‐ side of the balance sheet. |
| A. | Liability side |
| B. | Asset side |
| C. | Debit side |
| D. | Credit side |
| Answer» B. Asset side | |
| 546. |
No dividend is payable on calls in ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ |
| A. | Arrears |
| B. | Unpaid |
| C. | Unclaimed |
| D. | Advance |
| Answer» D. Advance | |
| 547. |
Companies have a statutory obligation to prepare required by section 210 of the companies Act |
| A. | Trading account |
| B. | Profit and loss account |
| C. | Balance sheet |
| D. | Final accounts |
| Answer» D. Final accounts | |
| 548. |
Companies have a statutory obligation to prepare final accounts required by ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of the companies Act 1956. |
| A. | Section 215 |
| B. | Section 220 |
| C. | Section 210 |
| D. | Section 212 |
| Answer» C. Section 210 | |
| 549. |
Companies have a statutory obligation to prepare final Accounts required by section 210 of the ‐‐‐‐‐‐‐ ‐‐‐‐‐1956. |
| A. | Partnership Act |
| B. | Banking Regulation Act |
| C. | Insurance Act |
| D. | Companies act. |
| Answer» D. Companies act. | |
| 550. |
Companies have a statutory obligation to prepare final accounts required by section 210 of the companies Act ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ |
| A. | 1936 |
| B. | 1932 |
| C. | 1938 |
| D. | 1956 |
| Answer» D. 1956 | |
| 551. |
Final accounts of the companies is prepared under the ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ |
| A. | Partnership Act 1932 |
| B. | Insurance Act 1938 |
| C. | Companies Act 1956 |
| D. | Banking Regulation act 1949 |
| Answer» C. Companies Act 1956 | |
| 552. |
Requirements given in part II of the schedule VI apply to ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ |
| A. | The Trading Account |
| B. | The Profit and Loss Account |
| C. | The balance sheet |
| D. | Final Accounts |
| Answer» B. The Profit and Loss Account | |
| 553. |
Requirements given in part I of schedule VI apply to ‐‐‐‐‐‐‐‐‐‐‐‐‐‐ |
| A. | Income statement |
| B. | Statement of profit or loss |
| C. | Balance sheet |
| D. | Final accounts |
| Answer» C. Balance sheet | |
| 554. |
Requirements given in part II of ‐‐‐‐‐‐‐‐‐‐‐‐‐apply to statement of profit or loss |
| A. | Schedule III |
| B. | Schedule IV |
| C. | Schedule V |
| D. | Schedule VI |
| Answer» D. Schedule VI | |
| 555. |
Requirements given in part I of ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ apply to Balance sheet |
| A. | Schedule I |
| B. | Schedule VI |
| C. | Schedule II |
| D. | Schedule V |
| Answer» B. Schedule VI | |
| 556. |
Ordinarily ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ are not available for the distribution of dividend. |
| A. | Revenue profits |
| B. | Capital profits |
| C. | Gross profit |
| D. | Net profit |
| Answer» B. Capital profits | |
| 557. |
Ordinarily ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ are available for the distribution of dividend. |
| A. | Revenue profits |
| B. | Capital profits |
| C. | Gross profit |
| D. | Trading profits |
| Answer» A. Revenue profits | |
| 558. |
Dividend paid or declared are subject to corporate dividend Tax @ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ as per recent finance Act. |
| A. | 12.5% |
| B. | 17% |
| C. | 15% |
| D. | 10% |
| Answer» B. 17% | |
| 559. |
Dividend paid or declared are subject to corporate Dividend Tax @ 17% as per recent ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ |
| A. | Finance Act |
| B. | Companies Act |
| C. | Partnership Act |
| D. | Insurance Act |
| Answer» A. Finance Act | |
| 560. |
Dividend paid are subject to ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ Tax @ 17% as per recent Finance Act |
| A. | Income Tax |
| B. | Gift Tax |
| C. | Corporate Dividend Tax |
| D. | None of these |
| Answer» C. Corporate Dividend Tax | |
| 561. |
Assets in to Balance sheet of a limited company are arranged in order of :‐ |
| A. | Liquidity |
| B. | Permanence |
| C. | Durability |
| D. | Turnover |
| Answer» B. Permanence | |
| 562. |
Calls in arrear is shown on the liability side of the balance sheet:‐ |
| A. | Under the heading current liabilities |
| B. | Under the head current assets |
| C. | Under the head fixed assets |
| D. | By deducting the amount from the called up capital |
| Answer» D. By deducting the amount from the called up capital | |
| 563. |
Fictitious assets are shown on the ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐side of the balance sheet. |
| A. | Liability side |
| B. | Income |
| C. | Balance sheet |
| D. | Assets |
| Answer» D. Assets | |
| 564. |
Fictitious Assets shown on the Asset side of the ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ |
| A. | Project and loss account |
| B. | Income statement |
| C. | Balance sheet |
| D. | Revenue account. |
| Answer» C. Balance sheet | |
| 565. |
Fictitious Assets are shown on the asset side of the balance sheet of a company under the heading ‐‐ ‐‐‐‐‐‐‐‐‐ |
| A. | Fixed assets |
| B. | Current assets |
| C. | Tangible assets |
| D. | Miscellaneous Expenditure |
| Answer» D. Miscellaneous Expenditure | |
| 566. |
Goodwill incase of a joint stock on the assets side under the heading of ‐‐‐‐‐‐‐‐‐‐ |
| A. | Fixed assets |
| B. | Current Assets |
| C. | Tangible assets |
| D. | Intangible assets |
| Answer» A. Fixed assets | |
| 567. |
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ in case of a joint stock company is shown on the Asset side under heading of intangible assets |
| A. | Goodwill |
| B. | Plant & machinery |
| C. | Land |
| D. | Building |
| Answer» A. Goodwill | |
| 568. |
Goodwill in case of a joint stock company is shown on the ‐‐‐‐‐‐‐‐‐‐‐‐‐‐ side under the heading of intangible assets |
| A. | Liability side |
| B. | Asset side |
| C. | Credit side |
| D. | Debit side |
| Answer» B. Asset side | |
| 569. |
Share forfeited Account is shown on the liabilities side of the balance sheet‐‐‐‐‐‐‐‐‐‐‐‐ |
| A. | By adding to the paid up capital |
| B. | Under the head reserves and surpluses |
| C. | Under the head current liabilities |
| D. | Under the head current Assets |
| Answer» A. By adding to the paid up capital | |
| 570. |
Unclaimed dividend is shown on the liability side of the balance sheet under the heading:‐ |
| A. | Reserves & Surpluses |
| B. | Current liabilities |
| C. | Provisions |
| D. | Unsecured Loans. |
| Answer» B. Current liabilities | |
| 571. |
Unclaimed dividend is shown on the ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of the balance sheet |
| A. | Assets side |
| B. | Credit side |
| C. | Liability side |
| D. | Debit side |
| Answer» C. Liability side | |
| 572. |
Uncliamed dividend is shown on the liability side of the ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ under the heading current liabilities. |
| A. | Profit and loss account |
| B. | Income statement |
| C. | Revenue Account |
| D. | Balance sheet |
| Answer» D. Balance sheet | |
| 573. |
The difference between Gross dividend receivable and dividend received is debited to ‐‐‐‐‐‐‐‐‐‐‐‐‐‐ |
| A. | Tax deducted at source |
| B. | Dividend deducted at source |
| C. | Interest deducted at source |
| D. | None of these. |
| Answer» A. Tax deducted at source | |
| 574. |
The difference between ‐‐‐‐‐‐‐‐‐‐‐‐‐‐ receivable and dividend received is debited to tax deducted at source. |
| A. | Gross dividend |
| B. | Net dividend |
| C. | Average dividend |
| D. | Final dividend |
| Answer» A. Gross dividend | |
| 575. |
Dividend declared between two ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is known as interim dividend |
| A. | Annual general meeting |
| B. | Directors meeting |
| C. | Special meeting |
| D. | Board meeting |
| Answer» A. Annual general meeting | |
| 576. |
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ declared between two annual general meeting is known as interim dividend |
| A. | Interest |
| B. | Dividend |
| C. | Final dividend |
| D. | Unclaimed dividend |
| Answer» B. Dividend | |
| 577. |
Dividend declared between two annual general meeting is known as ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ |
| A. | Final dividend |
| B. | Unclaimed dividend |
| C. | Interim dividend |
| D. | None of these. |
| Answer» C. Interim dividend | |
| 578. |
Calls in advance is shown on the ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of the balance sheet |
| A. | Asset side |
| B. | Credit side |
| C. | Liability side |
| D. | Debit side |
| Answer» C. Liability side | |
| 579. |
Preliminiary expenses incurred on the ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of a company. |
| A. | Formation |
| B. | Fluctuation |
| C. | Absorption |
| D. | Amalgamation |
| Answer» A. Formation | |
| 580. |
A Banking company should transfer ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of its profits to a statutory reserve. |
| A. | 20% |
| B. | 25% |
| C. | 15% |
| D. | 10% |
| Answer» B. 25% | |
| 581. |
A banking company should transfer 25% of its profits to a ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ |
| A. | General reserve |
| B. | Capital reserve |
| C. | Statutory Reserve |
| D. | Reserve fund |
| Answer» C. Statutory Reserve | |
| 582. |
A ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ company should transfer 25% of its profits to a statutory reserve |
| A. | Joint stock company |
| B. | Insurance company |
| C. | Private limited company |
| D. | Banking company |
| Answer» D. Banking company | |
| 583. |
Rebate on bills discounted is a ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of the Banking company. |
| A. | Liability |
| B. | Assets |
| C. | Expense |
| D. | Income |
| Answer» A. Liability | |
| 584. |
Rebate on bills discounted is shown on the ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ side of the balance sheet |
| A. | Asset |
| B. | Liability |
| C. | Credit |
| D. | Debit |
| Answer» B. Liability | |
| 585. |
Rebate on bills discounted is shown on the liability side of the ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ |
| A. | Profit and loss account |
| B. | Income statement |
| C. | Balance sheet |
| D. | None of these. |
| Answer» C. Balance sheet | |
| 586. |
Bills discounted is an ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of the banking company |
| A. | Asset |
| B. | Liability |
| C. | Income |
| D. | Expense |
| Answer» A. Asset | |
| 587. |
Banks are required to transfer ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of their profits to a statutory Reserve. |
| A. | 25% |
| B. | 205 |
| C. | 15% |
| D. | 10% |
| Answer» A. 25% | |
| 588. |
Rebate on bills discounted is ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ |
| A. | An item of income |
| B. | Income received in advance |
| C. | An asset |
| D. | Income accrued |
| Answer» B. Income received in advance | |
| 589. |
Banking business in India is largely governed by the Banking Regulation Act‐‐‐‐‐‐‐‐‐ |
| A. | 1932 |
| B. | 1956 |
| C. | 1949 |
| D. | 1938 |
| Answer» C. 1949 | |
| 590. |
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ in India is largely governed by the Banking Regulation act 1949. |
| A. | Insurance business |
| B. | Banking business |
| C. | Joint Stock company |
| D. | Cooperative society. |
| Answer» B. Banking business | |
| 591. |
Banking business in India is largely governed by the ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ |
| A. | Partnership Act |
| B. | Companies Act |
| C. | Insurance Act |
| D. | Banking Regulation Act |
| Answer» D. Banking Regulation Act | |
| 592. |
A ‐‐‐‐‐‐‐‐‐‐‐‐ loan is payable on demand |
| A. | Short term Loan |
| B. | Demand Loan |
| C. | Fixed Loan |
| D. | Long term Loan |
| Answer» B. Demand Loan | |
| 593. |
A demand Loan is payable on ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ |
| A. | Demand |
| B. | At any time |
| C. | After one year |
| D. | After six months |
| Answer» A. Demand | |
| 594. |
Revenue reserve means any reserve other than ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ reserve. |
| A. | General |
| B. | Capital |
| C. | Capital Redemption |
| D. | Other reserve. |
| Answer» D. Other reserve. | |
| 595. |
Money at call and short notice is an ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of the Banking company. |
| A. | Liability |
| B. | Asset |
| C. | Income |
| D. | Expense |
| Answer» B. Asset | |
| 596. |
Banks show provision for income tax under the head |
| A. | Contingency Account |
| B. | Other liabilities |
| C. | Contingent liabilities |
| D. | None of these. |
| Answer» B. Other liabilities | |
| 597. |
Contingency funds have been grouped in the balance sheet under the head ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ |
| A. | Other liabilities |
| B. | Provisions |
| C. | Current liabilities |
| D. | Current liabilities and provisions. |
| Answer» D. Current liabilities and provisions. | |
| 598. |
No profits and Loss Appropriation Account is prepared in case of a ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ company. |
| A. | Company |
| B. | Partnership |
| C. | Banking company |
| D. | None of these, |
| Answer» C. Banking company | |
| 599. |
Banks are required to prepare final accounts for each ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ year |
| A. | Financial year |
| B. | Calendar year |
| C. | Previous year |
| D. | None of these. |
| Answer» A. Financial year | |
| 600. |
A company required to prepare in profit & loss Account according to ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ in to III schedule to the banking regulation Act. |
| A. | Form A |
| B. | Form B |
| C. | Form C |
| D. | Form D |
| Answer» B. Form B | |
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