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
| 101. |
A contributory is: |
| A. | Creditor |
| B. | A shareholder |
| C. | A debenture holder |
| D. | A convertible debenture holder |
| Answer» B. A shareholder | |
| 102. |
A past member is not liable to contribute: |
| A. | 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 | |
| 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 | |
| 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 | |
| 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 | |
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