In respect of any liability contracted after he ceased to be member of the company.
B.
One year passed since he ceased to be a member.
C.
In case of company limited by shares, no liability arises if shares are fully paid up.
D.
All of the above
Answer»
D. All of the above
103.
Which of the following is not a preferential creditors:
A.
All sum due to employee from a provident fund, pension fund, gratuity fund or any other fund maintain for welfare of employee.
B.
Compensation under workmen’s compensation act.
C.
Amount due under employees state insurance act for 12 months previous to the winding up
D.
Amount due to employee under amalgamation or reconstruction
Answer»
D. Amount due to employee under amalgamation or reconstruction
104.
Salaries due to clerk is preferential for a period not exceeding:
A.
Two months
B.
Three months
C.
Four months
D.
Nine months
Answer»
C. Four months
105.
B” List of contributories are not liable:
A.
If shares are fully paid up
B.
For liabilities after they are ceases to be member of the company.
C.
If present shareholders paid the unpaid amount of the shares transferred by them.
D.
All of the above
Answer»
D. All of the above
106.
Which of the following is not a preferential creditors:
A.
All sum due to employee from a provident fund, pension fund, gratuity fund or any other fund maintain for welfare of employee.
B.
Compensation under workmen’s compensation act.
C.
Amount due under employee’s state insurance act for 12 months previous to the winding up
D.
Amount due to employee under amalgamation or reconstruction
Answer»
D. Amount due to employee under amalgamation or reconstruction
107.
Preference shareholders are legally entitled to the repayment of capital in the event of
liquidation of the company.
A.
True
B.
False
C.
none
D.
none
Answer»
B. False
108.
The …………..has a legal right of forfeiting the shares of those who fail to pay the
amount due.
A.
Liquidator
B.
Company
C.
Government
D.
directors
Answer»
A. Liquidator
109.
………………….on shares have priority over payment of paid up share capital of
that class.
A.
Calls in advance
B.
Calls in arrears
C.
Partially paid up shares.
D.
Debentures
Answer»
A. Calls in advance
110.
All revenue, taxes due to government within ………..before the date of
commencement of winding up is preferential.
A.
12 months
B.
24 months
C.
30 months
D.
180days
Answer»
C. 30 months
111.
Salaries due to director, manager, secretary etc. are preferential.
A.
True
B.
False
C.
none
D.
none
Answer»
B. False
112.
Amount due to workman is rank with ……………….in the event of liquidation of the
company.
A.
Government Dues
B.
Secured creditors
C.
Unsecured creditors
D.
Preferential liabilities
Answer»
B. Secured creditors
113.
………………… means any person employed in any skilled or unskilled, manual,
supervisory (wages less than 1600 p.m.), technical work.
A.
Workman
B.
Creditors
C.
Trade receivable
D.
Directors
Answer»
A. Workman
114.
A company being a creation of law cannot die a natural death. It comes to an end by
law through the process of liquidation
A.
True
B.
False
C.
none
D.
none
Answer»
A. True
115.
If a company makes a default in delivering the to the registrar or n holding the
statutory meeting, then company is compulsorily wound up by the court.
A.
Audit report
B.
Income tax report
C.
Statutory report
D.
Financial Statement
Answer»
C. Statutory report
116.
Creditors voluntary winding up applies to ………………. Companies
A.
Solvent
B.
Insolvent
C.
Textile
D.
Automoblie
Answer»
B. Insolvent
Chapter: Computerized Accounting Practices
117.
Spreadsheet software can be utilize to generate accounting reports.
A.
True
B.
False
C.
none
D.
none
Answer»
A. True
118.
A computer sometimes is also termed as 'electronic brain'
A.
True
B.
False
C.
none
D.
none
Answer»
A. True
119.
The idea of computers was first conceived by Charles P. Babbage in 1833.
A.
True
B.
False
C.
none
D.
none
Answer»
A. True
120.
Software, refers to the physical devices of a computer system
A.
True
B.
False
C.
none
D.
none
Answer»
B. False
121.
Consistency refers to the ability of the computers of perform a variety of
tasks, simple as well as complex.
A.
True
B.
False
C.
none
D.
none
Answer»
B. False
122.
Connectivity is acknowledge as a . . . . . . element of the computer system.
A.
Sixth
B.
Thirth
C.
Fourth
D.
Fifth
Answer»
A. Sixth
123.
Where large number of accounting data is involved spreadsheet software may not
work……………………………….
A.
Effective
B.
Speedy
C.
Accurate
D.
Perfect
Answer»
A. Effective
124.
The Enterprise Resource Planning software are of…………………………..proposals.
A.
Higher
B.
Lower
C.
Average
D.
simple
Answer»
A. Higher
125.
Repeating the same results without any variations irrespective of the number of times
the program is run is known as……………………
A.
Simple
B.
Complex
C.
Flexible
D.
Consistency
Answer»
D. Consistency
126.
In a pre-packaged accounting software reports are generated from the software
could be the………………………….
A.
Package
B.
Plan
C.
Course
D.
none
Answer»
A. Package
127.
Computerized accounting requires transaction data to be entered
into………………………
A.
Accounting Package.
B.
Accounting software
C.
Accounting estimates
D.
none
Answer»
A. Accounting Package.
128.
The choice of customized accounting packages is made on the basis of the………….
A.
Vendor
B.
Purchaser
C.
Buyer
D.
Client
Answer»
A. Vendor
129.
The ability with which the computers remain functional to serve the user is termed
as……………………………………………………
A.
Reliability
B.
Accuracy
C.
Flexible
D.
Measurable
Answer»
A. Reliability
130.
Enterprise resource planning is an ……………………………..
A.
Accounting Package.
B.
Accounting software
C.
Accounting estimates
D.
none
Answer»
B. Accounting software
131.
AS400 is a ………………………………accounting software.
A.
Financial
B.
Management
C.
Cost
D.
none
Answer»
A. Financial
Chapter: Accounting for Internal Reconstruction
132.
Internal reconstruction is a slow and tedious process since it required the approval of :
A.
Court
B.
Shareholders
C.
Creditors
D.
All of the Above.
Answer»
D. All of the Above.
133.
If the preference shareholder agree to sacrifice the arrear off preference dividend, it is
credited to:
A.
Capital Reduction A/C
B.
Preference Shareholders A/C
C.
Goodwill A/c
D.
Profit& Loss A/C
Answer»
A. Capital Reduction A/C
134.
After the implementation of the scheme of internal reconstruction , any surplus in
capital reduction A/C is transferred to :
A.
Capital A/C
B.
Profit & Loss A/C
C.
Shareholders A/C
D.
Capital reserve A/C
Answer»
D. Capital reserve A/C
135.
……………………reconstruction refers to the reduction of capital to cancel any paid up
capital.
A.
External
B.
Internal
C.
Amalagamation
D.
Absorption
Answer»
B. Internal
136.
Reduction of share capital is possible by the company, if it is authorized by its:
A.
Articles.
B.
Special resolution.
C.
Confirmation of the court.
D.
All of the Above.
Answer»
D. All of the Above.
137.
Converting share of smaller denomination into larger denominations is called:
A.
Sub-division
B.
Combination
C.
Consolidation
D.
Merger
Answer»
C. Consolidation
138.
Converting share of larger denomination into smaller denominations is called:
A.
Sub-division
B.
Combination
C.
Consolidation
D.
Merger
Answer»
A. Sub-division
139.
After the implementation of scheme of internal reconstruction, any amount left in the
capital reduction A/C will be transfer to:
A.
Capital Reserve A/C
B.
Capital A/c
C.
Profit & Loss A/C
D.
Shareholders A/C
Answer»
A. Capital Reserve A/C
140.
The main purpose of internal reconstruction is to:
A.
Eliminate the accumulated losses from the books.
B.
Bring down the assets to their true values
C.
Both A&B above
D.
Only A
Answer»
C. Both A&B above
141.
A fair and equitable distribution of loss is the essence of a successful scheme of:
A.
External reconstruction.
B.
Merger
C.
Amalgamation
D.
Internal reconstruction
Answer»
D. Internal reconstruction
Chapter: Holding Company Accounts
142.
At the time of …………………, inter company debts and acceptances are to be
cancelled out.
A.
Merger
B.
Absorption.
C.
Internal reconstruction.
D.
Consolidation.
Answer»
D. Consolidation.
143.
Inter- company dividends are ……………………..to the cost of investment in the
subsidiary company for calculating goodwill or capital reserve.
A.
Added
B.
Deducted
C.
Remove
D.
None of the above.
Answer»
B. Deducted
144.
Holdings of minority will …………………by the number of bonus shares received by
them.
A.
Increase
B.
Decrease
C.
Remain same
D.
None of the above
Answer»
A. Increase
145.
Out of the unrealized profits, a holding company’s share is reduced from the stock and
A.
Profit & Loss A/C
B.
Goodwill.
C.
Minority Interest
D.
Capital A/C
Answer»
A. Profit & Loss A/C
146.
Investments made by a holding company in a subsidiary company are always to be
shown in ……………….
A.
Profit & Loss A/C
B.
Consolidated Balance Sheet.
C.
Minority Interest.
D.
Dividend A/C
Answer»
B. Consolidated Balance Sheet.
147.
If AB Ltd buys more than 50% of the shares in CD Ltd then which of the following
statements accurately summarizes the relationship between these two firms?
A.
AB Ltd is a subsidiary undertaking of CD Ltd
B.
CD Ltd is the parent undertaking
C.
AB Ltd is the parent undertaking
D.
There is no significant financial relationship between the two
Answer»
C. AB Ltd is the parent undertaking
148.
On a consolidated balance sheet, if the shares of a company have been bought for
more than the balance sheet value then the difference would appear as:
A.
Goodwill
B.
Capital reserve
C.
Loss on purchase
D.
Profit on purchase
Answer»
A. Goodwill
149.
Pre-acquisition profit in subsidiary company is considered as:
A.
Revenue Profit
B.
Capital Profit
C.
Goodwill
D.
None of the above
Answer»
B. Capital Profit
150.
Profit earned after acquisition of share is treated as:
A.
Revenue Profit
B.
Capital Profit
C.
Goodwill
D.
None of the above.
Answer»
A. Revenue Profit
151.
Profit earned before acquisition of share is treated as:
A.
Revenue Profit
B.
Capital Profit
C.
Goodwill
D.
Revaluation Profit
Answer»
B. Capital Profit
152.
Preparation of consolidated statements as per AS 21 is :
A.
Optional
B.
Mandatory for All
C.
Mandatory for listed companies.
D.
Mandatory for PVT. companies.
Answer»
C. Mandatory for listed companies.
153.
Face value of debentures of subsidiary company, held by holding co.is deducted
from:
A.
Debentures
B.
Cost of Control
C.
Minority Interest.
D.
Goodwill.
Answer»
B. Cost of Control
154.
Minority Interest includes:
A.
Share in share capital
B.
Share in capital profit
C.
Share in revenue profit
D.
All of the above.
Answer»
D. All of the above.
155.
Preparation of Holding Companies Accounts Deals with :
A.
AS-22
B.
AS-21
C.
AS-25
D.
AS-12
Answer»
B. AS-21
156.
The time interval between the date of acquisition if shares in subsidiary company
and date of balance sheet of holding company is known as :
A.
Pre-acquisition period
B.
Post -acquisition period.
C.
Pre- commencement peri
Answer»
B. Post -acquisition period.
Chapter: Valuation of Shares
157.
Shares are to be valued on ___________.
A.
Mergers
B.
Sale of shares
C.
Gift tax
D.
All of the above
Answer»
D. All of the above
158.
Quoted shares are those shares which are ___________.
A.
listed on the stock exchange
B.
quoted daily
C.
quoted by the seller
D.
quoted by the buyer
Answer»
A. listed on the stock exchange
159.
Under net asset method, value of a share depends on ___________.
A.
net assets available to equity shareholders
B.
net assets available to debentures holders
C.
net assets available to preference shareholders
D.
none of the above
Answer»
A. net assets available to equity shareholders
160.
Net asset value is also called as ___________.
A.
asset backing value
B.
intrinsic value
C.
liquidation value
D.
(a), (b) and (c)
Answer»
D. (a), (b) and (c)
161.
While deciding net asset value, fictitious assets ___________.
A.
should be considered
B.
should not be considered
C.
added to total assets
D.
none of the above
Answer»
B. should not be considered
162.
Net asset value method is based on the assumption that the company is
___________.
A.
a going concern
B.
going to be liquidated.
C.
A & B both
D.
none of the above
Answer»
B. going to be liquidated.
163.
Yield value depends on ___________.
A.
future maintainable profit
B.
paid-up equity capital
C.
normal rate of return
D.
none of the above
Answer»
D. none of the above
164.
F.M.P. for yield valuation is ___________.
A.
future profit
B.
profit that would be available to equity shareholders
C.
past profit
D.
none of the above
Answer»
B. profit that would be available to equity shareholders
165.
Fair value of a share is equal to ___________.
A.
Intrinsic value only
B.
Yield value only
C.
Average of intrinsic and yield value
D.
None of the above
Answer»
C. Average of intrinsic and yield value
166.
Value of a partly paid equity share is equal to ___________.
A.
Value of fully paid share - calls unpaid per share
B.
Calls in arrears per share
C.
Paid-up value per share
D.
None of the above
Answer»
A. Value of fully paid share - calls unpaid per share
167.
Investments are ………………. assets.
A.
Non trading
B.
Current
C.
Fixed assets
D.
Fictious
Answer»
A. Non trading
168.
………………………….. value depends on Net assets.
A.
Yield value
B.
Fair value
C.
Intrinsic value
D.
none
Answer»
C. Intrinsic value
169.
Yield value depends on……………………….
A.
Net profit
B.
Gross profits
C.
Operating profits
D.
Losses
Answer»
A. Net profit
170.
Fair value is the ……………… of intrinsic value and yield value.
A.
Average
B.
Total
C.
Net
D.
Difference
Answer»
A. Average
171.
EPS depends on net profit available to………………. Shareholders.
A.
Equity
B.
Preference
C.
Debenture
D.
Both A and B
Answer»
A. Equity
172.
F.M.P. stands for …………………
A.
Firm maintainable profits
B.
Future maintainable profits
C.
False maintainable profits
D.
Foreign maintainable profits.
Answer»
B. Future maintainable profits
173.
P/E ratio is a relationship between……………….. and ……………
A.
MP/ EPS
B.
NP/EPS
C.
GP/ EPS
D.
LOSS/EPS
Answer»
A. MP/ EPS
174.
Intrinsic Value Method is also called as………………..
A.
Yield method
B.
Fair value method
C.
Asset Backing method
D.
none
Answer»
C. Asset Backing method
175.
Yield value is based on the assumption that ……………….
A.
Revenue realisation
B.
Going concern
C.
Prudence
D.
Cost concept
Answer»
B. Going concern
176.
NRR stands for ……………………………….
A.
Normal rate of return
B.
Non resident
C.
Natural rate of return
D.
Nil rate of return
Answer»
A. Normal rate of return
177.
Goodwill is paid for obtaining __________.
A.
Future benefit
B.
Present benefit
C.
Past benefit
D.
None of the above
Answer»
A. Future benefit
178.
The company earns a net profit of 24,000 with a capital of1,20,000. The NRR is
10%. Under capitalisation of super profit, goodwill will be ___________.
A.
1,20,000
B.
70,000
C.
12,000
D.
24,000
Answer»
A. 1,20,000
179.
Gross assets are 1,01,000, fictitious assets 350 are included in the gross assets. External liabilities are 7,500. 6% preference share capital is 45,000. Equity capital is 4,500 equity shares of 10 each fully paid. Average expected profit is 8,500. Transfer to reserves is 10% preference dividend is payable. NRR is 9%. The Net Asset Value Per share is ___________.
A.
11
B.
10.70
C.
15
D.
20
Answer»
B. 10.70
180.
Fair value is not the average of intrinsic value and yield value.
A.
True
B.
False
C.
none
D.
none
Answer»
B. False
181.
In net Assets method all liabilities are consider.
A.
True
B.
False
C.
none
D.
none
Answer»
B. False
More MCQs
182.
How many IFRS are in force as of now?
A.
65
B.
36
C.
37
D.
38
Answer»
A. 65
183.
Total no of interpretations applicable till date?
A.
24
B.
26
C.
28
D.
30
Answer»
C. 28
184.
What is the transition date of IFRS in India?
A.
april 1, 2010
B.
april 1, 2011
C.
april 1, 2012
D.
april 1, 2008
Answer»
B. april 1, 2011
185.
As per IAS 1, Presentation of financial statement, ______ no of items would constitute
complete set of financial statements.
A.
atleast 5
B.
atleast 6
C.
5
D.
6
Answer»
D. 6
186.
GAAP stands for
A.
generally accepted accounting principles
B.
globally accepted accounting practice
C.
generally allowable accounting principles
D.
generally allowable accounting practice
Answer»
A. generally accepted accounting principles
187.
Whether financial reviews by management, environment reports and value added financial
statements are outside the scope of international financial reporting standards (IFRSs)?
A.
yes
B.
no
C.
not mentioned in ifrs
D.
still in consideration
Answer»
A. yes
188.
What is the term used to describe the time between the acquisition of assets for processing and
their realization in cash or cash equivalents?
A.
processing cycle
B.
turnover
C.
operating cycle
D.
turnaround
Answer»
C. operating cycle
189.
Which sections of an annual report do IFRSs apply to?
A.
management report
B.
financial statements
C.
auditors report
D.
entire annual report
Answer»
B. financial statements
190.
How many formats are permitted for income and expense items under Ind AS 1?
A.
one
B.
two
C.
three
D.
four
Answer»
B. two
191.
Where should extraordinary items appear in an entity’s Statement of Comprehensive Income?
A.
other comprehensive income
B.
income statement
C.
notes
D.
nowhere
Answer»
D. nowhere
192.
When is offsetting permitted under Ind AS 1?
A.
always
B.
never
C.
when required or permitted under an ifrs
D.
when approved by the board of directors
Answer»
C. when required or permitted under an ifrs
193.
Which of the following is not a component of a Statement of Financial Position?
A.
non-current assets
B.
retained earnings
C.
cost of goods sold
D.
deferred tax
Answer»
C. cost of goods sold
194.
Which of the following is not a requirement in the financial statements under Ind AS 1?
A.
name of the entity
B.
chairman’s commentary on performance
C.
the accounting period
D.
presentation currency
Answer»
B. chairman’s commentary on performance
195.
Under Ind AS 1 how often should financial statements be prepared?
A.
at least annually
B.
no more than annually
C.
as often as the company requires
D.
monthly
Answer»
A. at least annually
196.
Correcting the recognition measurement and disclosure of amounts in financial statements as
if a prior period error had never occurred. This is:
A.
retrospective restatement
B.
retrospective application
C.
changes in accounting estimate
D.
delayed application
Answer»
A. retrospective restatement
197.
Under Ind AS 16 how often the useful life of an asset should be reviewed?
A.
at least at each financial year end
B.
every six months
C.
at management’s discretion
D.
never
Answer»
A. at least at each financial year end
198.
Under Ind AS 16 if an asset is idle
A.
depreciation is paused
B.
depreciation for the entire period does not apply
C.
depreciation is ignored
D.
depreciation continues
Answer»
D. depreciation continues
199.
Which of these is an allowable cost of an asset under Ind AS 16?
A.
general overheads
B.
professional fees
C.
administration expenses
Answer»
B. professional fees
200.
What is the net amount an entity expects to obtain for an asset at the end of its useful life?
Question and answers in
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