McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Business Administration (BBA) , Bachelor of Commerce (B Com) .
Chapters
| 501. |
The net profit available for dividend distribution is called ………… |
| A. | Net Profit |
| B. | Surplus |
| C. | Divisible Profit |
| D. | Capital Profit |
| Answer» C. Divisible Profit | |
| 502. |
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 | |
| 503. |
………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 | |
| 504. |
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 | |
| 505. |
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 | |
| 506. |
……..is a charge against profit of the company |
| A. | Provision |
| B. | Reserves |
| C. | Surplus |
| D. | All of these |
| Answer» A. Provision | |
| 507. |
CDT stands for…. |
| A. | Company Direct Tax |
| B. | Corporate Dividend Tax |
| C. | Combined Direct Tax |
| D. | None of these |
| Answer» B. Corporate Dividend Tax | |
| 508. |
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 | |
| 509. |
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 | |
| 510. |
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 | |
| 511. |
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 | |
| 512. |
………is concerned with accounting for amalgamation. |
| A. | AS – 10 |
| B. | AS – 12 |
| C. | AS – 14 |
| D. | AS – 16 |
| Answer» C. AS – 14 | |
| 513. |
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 | |
| 514. |
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 | |
| 515. |
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 | |
| 516. |
…………….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 | |
| 517. |
Purchase consideration is payable to ………….. |
| A. | Creditors |
| B. | Shareholders |
| C. | Debenture holders |
| D. | All of these |
| Answer» B. Shareholders | |
| 518. |
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 | |
| 519. |
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 | |
| 520. |
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 | |
| 521. |
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 | |
| 522. |
Loss on realisation is transferred to ………….. |
| A. | Transferee Company Account |
| B. | Transferor Company Account |
| C. | Shareholders Account |
| D. | Creditors Account |
| Answer» C. Shareholders Account | |
| 523. |
………… is a statutory reserve |
| A. | General Reserve |
| B. | Export profit reserve |
| C. | Dividend equalization reserve |
| D. | Capital Reserve |
| Answer» B. Export profit reserve | |
| 524. |
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 | |
| 525. |
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 | |
| 526. |
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 | |
| 527. |
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 | |
| 528. |
Realisation Account is a ………….. |
| A. | Real Account |
| B. | Personal Account |
| C. | Nominal Account |
| D. | Suspense Account |
| Answer» C. Nominal Account | |
| 529. |
……….is not transferred to realisation account |
| A. | Goodwill |
| B. | Fictitious asset |
| C. | Trademark |
| D. | All of these |
| Answer» B. Fictitious asset | |
| 530. |
Trade liabilities include ……….. |
| A. | Creditors |
| B. | Debentures |
| C. | Bank overdraft |
| D. | All of these |
| Answer» A. Creditors | |
| 531. |
Purchase consideration includes ……….. |
| A. | Cash |
| B. | Shares |
| C. | Debentures |
| D. | All of these |
| Answer» D. All of these | |
| 532. |
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 | |
| 533. |
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 | |
| 534. |
In ………., the company does not loss its identity |
| A. | Amalgamation |
| B. | External reconstruction |
| C. | Absorption |
| D. | Internal reconstruction |
| Answer» D. Internal reconstruction | |
| 535. |
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 | |
| 536. |
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 | |
| 537. |
Capital Reduction Account is a ……….. |
| A. | Nominal Account |
| B. | Permanent Account |
| C. | Temporary Account |
| D. | None of these |
| Answer» C. Temporary Account | |
| 538. |
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 | |
| 539. |
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 | |
| 540. |
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 | |
| 541. |
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 | |
| 542. |
In internal reconstruction, the existing company will be ………. |
| A. | Amalgamated |
| B. | Absorbed |
| C. | Liquidated |
| D. | None of these |
| Answer» D. None of these | |
| 543. |
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 | |
| 544. |
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 | |
| 545. |
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 | |
| 546. |
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 | |
| 547. |
. ……..is called a factory of credit. |
| A. | Company |
| B. | Firm |
| C. | Bank |
| D. | None of these |
| Answer» C. Bank | |
| 548. |
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 | |
| 549. |
CRR stands for ………… |
| A. | Current Reserve Ratio |
| B. | Capital Reserve Ratio |
| C. | Cash Reserve Ratio |
| D. | Capital Redemption Ratio |
| Answer» C. Cash Reserve Ratio | |
| 550. |
SLR stands for …………… |
| A. | Savings Level Ratio |
| B. | Statutory Liquidity Ratio |
| C. | Standard Liquidity Ratio |
| D. | None of these |
| Answer» B. Statutory Liquidity Ratio | |
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