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
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 |
Done Studing? Take A Test.
Great job completing your study session! Now it's time to put your knowledge to the test. Challenge yourself, see how much you've learned, and identify areas for improvement. Don’t worry, this is all part of the journey to mastery. Ready for the next step? Take a quiz to solidify what you've just studied.