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
| 651. |
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 | |
| 652. |
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 | |
| 653. |
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 | |
| 654. |
………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 | |
| 655. |
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 | |
| 656. |
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 | |
| 657. |
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 | |
| 658. |
The acquiree in a business combination is also called a….. company |
| A. | subsidiary |
| B. | parent |
| C. | holding |
| D. | controlling |
| Answer» A. subsidiary | |
| 659. |
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 | |
| 660. |
Section …… of the Companies Act 2013 deals with the issue of right shares |
| A. | 62 |
| B. | 63 |
| C. | 64 |
| D. | 68 |
| Answer» A. 62 | |
| 661. |
A company formed and registered under ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐Act 1956. |
| A. | Partnership |
| B. | Companies |
| C. | Banking companies |
| D. | none of these. |
| Answer» B. Companies | |
| 662. |
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 | |
| 663. |
A new company cannot issue shares at‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐. |
| A. | Premium |
| B. | Discount |
| C. | Par |
| D. | None of these. |
| Answer» B. Discount | |
| 664. |
‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 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 | |
| 665. |
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 | |
| 666. |
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ Shares carry a fixed rate of dividend. |
| A. | Preference |
| B. | Equity |
| C. | Deferred |
| D. | Sweat equity. |
| Answer» A. Preference | |
| 667. |
Share application account is in the nature of ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ account. |
| A. | Personal |
| B. | Real |
| C. | Nominal |
| D. | None of these. |
| Answer» A. Personal | |
| 668. |
The discount on the issue of shares should not exceed ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ normally. |
| A. | 10% |
| B. | 20% |
| C. | 30% |
| D. | None of these. |
| Answer» A. 10% | |
| 669. |
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 | |
| 670. |
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 | |
| 671. |
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 | |
| 672. |
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 | |
| 673. |
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 | |
| 674. |
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 | |
| 675. |
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 | |
| 676. |
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 | |
| 677. |
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 | |
| 678. |
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 | |
| 679. |
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 | |
| 680. |
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 | |
| 681. |
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 | |
| 682. |
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 | |
| 683. |
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 | |
| 684. |
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 | |
| 685. |
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 | |
| 686. |
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 | |
| 687. |
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 | |
| 688. |
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 | |
| 689. |
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 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 | |
| 690. |
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 | |
| 691. |
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 | |
| 692. |
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 | |
| 693. |
Find the odd one:‐ |
| A. | Subscribed capital |
| B. | Authorized capital |
| C. | Registered capital |
| D. | Nominal capital |
| Answer» A. Subscribed capital | |
| 694. |
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 | |
| 695. |
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 | |
| 696. |
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 | |
| 697. |
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 | |
| 698. |
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 | |
| 699. |
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 | |
| 700. |
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 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 | |
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