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
| 701. |
Debentures constitute ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ capital of the company |
| A. | Owned |
| B. | Borrowed |
| C. | Reserve |
| D. | None of these |
| Answer» B. Borrowed | |
| 702. |
Debenture holders are ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of a company. |
| A. | Owners |
| B. | Creditors |
| C. | Debtors |
| D. | None of these |
| Answer» B. Creditors | |
| 703. |
Generally, debentures are |
| A. | Unsecured |
| B. | Secured |
| C. | Converted |
| D. | Bearer |
| Answer» B. Secured | |
| 704. |
Redemption of debentures means ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of liability on debentures. |
| A. | Conversion |
| B. | Discharge |
| C. | Creation |
| D. | None of these |
| Answer» B. Discharge | |
| 705. |
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 | |
| 706. |
Debentures repayable after a fixed period of a time are called ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ debentures. |
| A. | Convertible |
| B. | Redeemable |
| C. | Bearer |
| D. | Secured |
| Answer» B. Redeemable | |
| 707. |
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 | |
| 708. |
Unsecured debentures are otherwise known as ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ debentures. |
| A. | Simple |
| B. | Mort age |
| C. | Bearer |
| D. | None of these. |
| Answer» A. Simple | |
| 709. |
Debenture is a written ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of debt of a company |
| A. | Articles |
| B. | Acknowledgement |
| C. | Payment |
| D. | None of these. |
| Answer» B. Acknowledgement | |
| 710. |
Premium on issue of debentures is a ‐‐‐‐‐‐‐‐‐‐‐. |
| A. | Capital loss |
| B. | Capital profit |
| C. | Revenue profit |
| D. | Revenue loss. |
| Answer» B. Capital profit | |
| 711. |
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 | |
| 712. |
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 | |
| 713. |
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 | |
| 714. |
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 | |
| 715. |
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 | |
| 716. |
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 | |
| 717. |
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 | |
| 718. |
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. | |
| 719. |
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 | |
| 720. |
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 | |
| 721. |
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 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 | |
| 722. |
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 | |
| 723. |
Dividend declared between two Annual General Meetings. |
| A. | Final dividend |
| B. | Proposed dividend |
| C. | Unclaimed dividend |
| D. | Interim dividend |
| Answer» D. Interim dividend | |
| 724. |
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% | |
| 725. |
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 | |
| 726. |
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 | |
| 727. |
No dividend is payable on calls in ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ |
| A. | Arrears |
| B. | Unpaid |
| C. | Unclaimed |
| D. | Advance |
| Answer» D. Advance | |
| 728. |
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 | |
| 729. |
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 | |
| 730. |
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. | |
| 731. |
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 | |
| 732. |
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 | |
| 733. |
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 | |
| 734. |
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 | |
| 735. |
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 | |
| 736. |
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 | |
| 737. |
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 | |
| 738. |
Ordinarily ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ are available for the distribution of dividend. |
| A. | Revenue profits |
| B. | Capital profits |
| C. | Gross profit |
| D. | Trading profits |
| Answer» A. Revenue profits | |
| 739. |
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% | |
| 740. |
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 | |
| 741. |
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 | |
| 742. |
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 | |
| 743. |
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 | |
| 744. |
Fictitious assets are shown on the ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐side of the balance sheet. |
| A. | Liability side |
| B. | Income |
| C. | Balance sheet |
| D. | Assets |
| Answer» D. Assets | |
| 745. |
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 | |
| 746. |
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 | |
| 747. |
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 | |
| 748. |
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 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 | |
| 749. |
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 | |
| 750. |
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 | |
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