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780+ Corporate Accounting Solved MCQs

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) .

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More MCQs
601.

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%
602.

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
603.

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
604.

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
605.

…….. 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
606.

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
607.

Ind AS ……. Deals with share based payments

A. 102
B. 110
C. 101
D. 105
Answer» A. 102
608.

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
609.

Buy back of equity shares is a process of capital ……..

A. reduction
B. restructuring
C. control
D. none
Answer» B. restructuring
610.

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
611.

………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
612.

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
613.

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
614.

Interest on debenture is ….

A. adjustment of profit
B. appropriation of profit
C. charge on profit
D. none
Answer» C. charge on profit
615.

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
616.

Debenture is document which creates a……

A. debt
B. credit
C. both A and B
D. none
Answer» A. debt
617.

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
618.

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
619.

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
620.

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
621.

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
622.

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
623.

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
624.

……..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
625.

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
626.

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
627.

Debentures can be redeemed out of ……….

A. Fresh issue
B. Capital
C. Profit
D. All of these
Answer» D. All of these
628.

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
629.

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
630.

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
631.

Under Double account system, the balance sheet is prepared in ……parts

A. three
B. two
C. one
D. none
Answer» B. two
632.

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%
633.

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
634.

General insurance policies are generally taken for

A. one year
B. two years
C. three years
D. none
Answer» A. one year
635.

IRDA Act came into effect in

A. 1938
B. 1999
C. 2000
D. none
Answer» B. 1999
636.

Reserve for unexpired risk is shown under

A. reserves and surplus
B. current liabilities
C. provisions
D. none
Answer» C. provisions
637.

The Insurance Act came in to effect in …..

A. 1956
B. 1998
C. 1938
D. 2000
Answer» C. 1938
638.

The fixed assets of an insurance company are shown in

A. Schedule 6
B. Schedule 7
C. Schedule 8
D. none
Answer» D. none
639.

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
640.

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
641.

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
642.

….. 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
643.

……….. is called factory of credit

A. company
B. bank
C. firm
D. none
Answer» B. bank
644.

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
645.

Schedule 1 is concerned with

A. Capital
B. Reserves and surplus
C. interest earned
D. none
Answer» A. Capital
646.

Interest on debentures is calculated on ______.

A. Issue price.
B. redeemable price
C. face value
D. market price.
Answer» C. face value
647.

Transfer to capital redemption reserve can be made from ____.

A. capital reserve.
B. forfeited shares.
C. general reserve
D. securities
Answer» C. general reserve
648.

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
649.

In subdivision of shares, …… capital does not change

A. Paid up
B. Issued
C. unissued
D. none
Answer» A. Paid up
650.

No journal entry is required for the cancellation of ………. Share capital

A. Unissued
B. paid up
C. Subscribed
D. none
Answer» A. Unissued

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