McqMate
Chapters
| 401. |
------ is a liability which may or may not arise in future depending on happening of some uncertain future event. |
| A. | contingent liability |
| B. | bills for collection |
| C. | non-banking liability |
| D. | bills payable |
| Answer» A. contingent liability | |
| 402. |
Acceptances, endorsements and obligations on behalf of a customer will be shown as ----- in the balance sheet of a company. |
| A. | other asset |
| B. | other liability |
| C. | borrowings |
| D. | contingent liability |
| Answer» D. contingent liability | |
| 403. |
NPA for a period not exceeding 12 months is called as ----- asset. |
| A. | loss |
| B. | standard |
| C. | sub-standard |
| D. | doubtful |
| Answer» C. sub-standard | |
| 404. |
Advanced tax paid by a banking company is shown as ---- in the Balance Sheet. |
| A. | Advance |
| B. | Investment |
| C. | Other assets |
| D. | contingent liability |
| Answer» C. Other assets | |
| 405. |
Provision for Income tax is shown in a bank’s Balance Sheet as ------ |
| A. | Contingent liability |
| B. | Contingent asset |
| C. | Borrowings |
| D. | other liabilities and provisions |
| Answer» D. other liabilities and provisions | |
| 406. |
Rebate on bills discounted is shown in the Balance Sheet as ------ |
| A. | Advances |
| B. | Other liabilities & provisions |
| C. | Other income |
| D. | reserves & surplus |
| Answer» B. Other liabilities & provisions | |
| 407. |
Rebate on bills discounted is also called -------- |
| A. | Unexpired discount |
| B. | Earned discount |
| C. | Expired discount |
| D. | received discount |
| Answer» A. Unexpired discount | |
| 408. |
While preparing P/L account , rebate on bills discounted to be provided shall be deducted from discount received in -------- |
| A. | Schedule 16 |
| B. | Schedule 15 |
| C. | Schedule 14 |
| D. | schedule 13 |
| Answer» D. schedule 13 | |
| 409. |
Which of the following are performing assets? |
| A. | Loss asset |
| B. | Standard asset |
| C. | Sub-standard asset |
| D. | doubtful asset |
| Answer» B. Standard asset | |
| 410. |
Interest on non-performing assets should be recognized on -------- basis. |
| A. | actually received |
| B. | accrual |
| C. | standard |
| D. | none |
| Answer» A. actually received | |
| 411. |
Which of the following represents term deposit? |
| A. | Savings deposit |
| B. | current deposit |
| C. | fixed deposit |
| D. | none |
| Answer» C. fixed deposit | |
| 412. |
The short term advances made by a bank to the stock brokers and bill brokers are called --------- |
| A. | Money at call |
| B. | short loan |
| C. | short provision |
| D. | inter-office adjustment |
| Answer» A. Money at call | |
| 413. |
------ is an annual payment made by a life insurance company in consideration form a lump sum received. |
| A. | claim |
| B. | annuity |
| C. | bonus |
| D. | premium |
| Answer» B. annuity | |
| 414. |
Which of the following represents policy holders a/c? |
| A. | P/L a/c |
| B. | revenue a/c |
| C. | balance sheet |
| D. | none |
| Answer» B. revenue a/c | |
| 415. |
------ is a device of reducing the risk undertaken by an insurance company. |
| A. | re-insurance |
| B. | double insurance |
| C. | risk insurance |
| D. | none of these |
| Answer» A. re-insurance | |
| 416. |
Under ……policy the sum assured becomes payable on the attainment of a specific age or on death whichever is earlier |
| A. | whole time life policy |
| B. | endowment policy |
| C. | with profit policy |
| D. | none of these |
| Answer» B. endowment policy | |
| 417. |
…….is a reserve created to meet any loss due to natural calamities. |
| A. | revenue reserve |
| B. | capital reserve |
| C. | catastrophe reserve |
| D. | none of these |
| Answer» C. catastrophe reserve | |
| 418. |
Life insurance is a contract of…… |
| A. | indemnity |
| B. | guarantee |
| C. | contribution . |
| D. | none of these |
| Answer» B. guarantee | |
| 419. |
General insurance is a contract of …… |
| A. | contribution |
| B. | indemnity |
| C. | guarantee |
| D. | none of these |
| Answer» B. indemnity | |
| 420. |
In the case of marine insurance reserve for unexpired risk is ….. |
| A. | 50% |
| B. | 100% |
| C. | 40% |
| D. | none of these |
| Answer» B. 100% | |
| 421. |
Valuation balance sheet is prepared by a life insurance company to find out |
| A. | Profit or loss |
| B. | financial position |
| C. | surplus or deficiency |
| D. | net liability |
| Answer» C. surplus or deficiency | |
| 422. |
Insurance Regulatory and Development Authorities Act came in to effect in |
| A. | 2001 |
| B. | 2004 |
| C. | 1999 |
| D. | none of these |
| Answer» C. 1999 | |
| 423. |
Bonus payable on maturity of the policy is termed as |
| A. | cash bonus |
| B. | capital bonus |
| C. | reversionary bonus |
| D. | none of these |
| Answer» C. reversionary bonus | |
| 424. |
Insurance Act came in to effect in…., |
| A. | 1956 |
| B. | 1972 |
| C. | 1938 |
| D. | none of these |
| Answer» C. 1938 | |
| 425. |
Legal expenses in respect of claims of an insurance company is shown in ----------- |
| A. | P&L a/c |
| B. | Revenue a/c |
| C. | Balance sheet |
| D. | Surplus a/c |
| Answer» B. Revenue a/c | |
| 426. |
Bonus in reduction of premium appears in the revenue a/c as ---------- |
| A. | an income |
| B. | an expense |
| C. | no where |
| D. | profit |
| Answer» B. an expense | |
| 427. |
……………… is an artificial person created by law |
| A. | Firm |
| B. | Sole trader |
| C. | Company |
| D. | None of these |
| Answer» C. Company | |
| 428. |
The liability of shareholders of a company is ……………….. |
| A. | Limited |
| B. | Unlimited |
| C. | Uncertain |
| D. | None of these |
| Answer» A. Limited | |
| 429. |
A company is managed by its……………. |
| A. | Partners |
| B. | Auditor |
| C. | Board of Directors |
| D. | Debenture holder |
| Answer» C. Board of Directors | |
| 430. |
………….company Is a company created by a special Act in Parliament |
| A. | Government |
| B. | Registered |
| C. | Chartered |
| D. | Statutory |
| Answer» D. Statutory | |
| 431. |
A company registered with Registrar of Companies under Indian Companies Act is called as……….. |
| A. | Government |
| B. | Registered |
| C. | Chartered |
| D. | Statutory |
| Answer» B. Registered | |
| 432. |
The company in which the liability of members is liable to pay the agreed amount at the time of winding up is called as ………….. |
| A. | Unlimited Company |
| B. | Company limited by shares |
| C. | Company limited by guarantee |
| D. | Liquidating Company |
| Answer» C. Company limited by guarantee | |
| 433. |
A company in which the transferability of share is restricted is called as ………….. |
| A. | Government Company |
| B. | Private Company |
| C. | Public Company |
| D. | Foreign Company |
| Answer» B. Private Company | |
| 434. |
……….is the first stage in the formation of a public company |
| A. | Promotion |
| B. | Incorporation |
| C. | Capital Subscription |
| D. | Commencement |
| Answer» A. Promotion | |
| 435. |
Authorised capital is called as…………… |
| A. | Reserve capital |
| B. | Nominal Capital |
| C. | Capital Reserve |
| D. | Subscribed capital |
| Answer» B. Nominal Capital | |
| 436. |
…………..is that portion of capital which is called up only on winding up of the company. |
| A. | Authorised Capital |
| B. | Issued capital |
| C. | Subscribed capital |
| D. | Reserve capital |
| Answer» D. Reserve capital | |
| 437. |
In case of ……………..preference shares, the arrears of dividend are carried forward and paid out of the profits of the subsequent years. |
| A. | Participating |
| B. | Convertible |
| C. | Cumulative |
| D. | Redeemable |
| Answer» C. Cumulative | |
| 438. |
…………..shares are repayable after the expiry of the fixed period or at the option of the company. |
| A. | Participating |
| B. | Convertible |
| C. | Cumulative |
| D. | Redeemable |
| Answer» D. Redeemable | |
| 439. |
A bundle of fully paid shares is called…………….. |
| A. | Stock |
| B. | Sweat Equity |
| C. | Warrant |
| D. | None of these |
| Answer» A. Stock | |
| 440. |
IPO stands for ……………… |
| A. | Initial Private Offer |
| B. | International Public Offer |
| C. | Initial Public Offer |
| D. | International Private Offer |
| Answer» C. Initial Public Offer | |
| 441. |
In …... the company offers the investors an opportunity to bid collectively. |
| A. | Private Placement |
| B. | Offer for sale |
| C. | Book building |
| D. | IPO |
| Answer» C. Book building | |
| 442. |
As per the companies Act, the interest on calls in advance is ………….. |
| A. | 10% |
| B. | 6% |
| C. | 5% |
| D. | 7% |
| Answer» B. 6% | |
| 443. |
The rate of interest on Calls in arrears as per Companies Act is ………… |
| A. | 10% |
| B. | 6% |
| C. | 5% |
| D. | 7% |
| Answer» C. 5% | |
| 444. |
The shares of a company can be issued at ………….. |
| A. | Par |
| B. | Premium |
| C. | Discount |
| D. | All of these |
| Answer» D. All of these | |
| 445. |
Share application account is a ……….. |
| A. | Real Account |
| B. | Nominal Account |
| C. | Impersonal Account. |
| D. | Personal Account |
| Answer» D. Personal Account | |
| 446. |
The rate of discount on shares cannot exceed ………. |
| A. | 10% |
| B. | 5% |
| C. | 6% |
| D. | 7% |
| Answer» A. 10% | |
| 447. |
A newly established company cannot issue shares at …… |
| A. | Par |
| B. | Premium |
| C. | Discount |
| D. | All of these |
| Answer» C. Discount | |
| 448. |
………..of total issued amount of capital is called minimum subscription. |
| A. | 75% |
| B. | 90% |
| C. | 95% |
| D. | 80% |
| Answer» B. 90% | |
| 449. |
The rate of discount should not exceed ……………. Of nominal vale of shares. |
| A. | 10% |
| B. | 5% |
| C. | 6% |
| D. | 7% |
| Answer» A. 10% | |
| 450. |
The minimum application money to be paid by an applicant must not be less than …….as per Companies Act. |
| A. | 10% |
| B. | 5% |
| C. | 15% |
| D. | 20% |
| Answer» B. 5% | |
| 451. |
The excess price received on the par value of shares should be credited to …………. |
| A. | Calls in advance A/c |
| B. | Reserve Capital A/c |
| C. | Security Premium A/c |
| D. | None of these |
| Answer» C. Security Premium A/c | |
| 452. |
Underwriting commission is classified as ………….. |
| A. | Capital Loss |
| B. | Capita Expenditure |
| C. | Revenue expenditure |
| D. | Deferred revenue expenditure |
| Answer» D. Deferred revenue expenditure | |
| 453. |
Compulsory cancellation of shares by the company\y due to non‐payment of allotment or call money is called ……………. |
| A. | Surrender of Shares |
| B. | Buy back of shares |
| C. | Forfeiture of shares |
| D. | All of these |
| Answer» C. Forfeiture of shares | |
| 454. |
The profit on reissue of forfeited shares is transferred to ……… |
| A. | General reserve |
| B. | Capital Redemption reserve |
| C. | Capital reserve |
| D. | Investment Allowance reserve |
| Answer» C. Capital reserve | |
| 455. |
Preference shareholders are………… |
| A. | Debtors of the company |
| B. | Creditors of the company |
| C. | Owners of the company |
| D. | None of these |
| Answer» C. Owners of the company | |
| 456. |
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 | |
| 457. |
The security premium account is shown in the balance sheet under the head………. |
| A. | Share capital |
| B. | Reserves & Surplus |
| C. | Secured loans |
| D. | Current liabilities |
| Answer» B. Reserves & Surplus | |
| 458. |
………..should be deducted from the share capital to determine the paid up capital. |
| A. | Security premium |
| B. | Calls in advance |
| C. | Calls in arrears |
| D. | Discount on issue |
| Answer» C. Calls in arrears | |
| 459. |
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 | |
| 460. |
On an equity share of Rs. 20, the company has called up Rs. 16 but Rs.14 has been received by the company, the share capital account should be credited by …… |
| A. | Rs. 20 |
| B. | Rs. 16 |
| C. | Rs. 14 |
| D. | Rs. 6 |
| Answer» B. Rs. 16 | |
| 461. |
Balance of forfeited share is ……. |
| A. | Revenue Reserve |
| B. | Capital Reserve |
| C. | Secret Reserve |
| D. | Security Premium |
| Answer» B. Capital Reserve | |
| 462. |
When shares are issued at a price higher than their face value, it is called issue at………….. |
| A. | Par |
| B. | Premium |
| C. | Discount |
| D. | None of these |
| Answer» B. Premium | |
| 463. |
The shares of a company only can be forfeited after giving a ………days notice |
| A. | 21 |
| B. | 14 |
| C. | 7 |
| D. | 30 |
| Answer» B. 14 | |
| 464. |
The forfeited shares can be reissued at ………… |
| A. | Par |
| B. | Premium |
| C. | Discount |
| D. | All of these |
| Answer» D. All of these | |
| 465. |
Discount on reissue of forfeited shares should not exceed …………. |
| A. | Amount forfeited |
| B. | Face value |
| C. | Issued price |
| D. | Market price |
| Answer» A. Amount forfeited | |
| 466. |
Preference shares cannot be redeemed at ……….. |
| A. | Par |
| B. | Premium |
| C. | Discount |
| D. | All of these |
| Answer» C. Discount | |
| 467. |
Preference shares can be redeemed by…………. |
| A. | Fresh issue of shares |
| B. | Profit |
| C. | Partly out of fresh issue and partly out of profit. |
| D. | All of these |
| Answer» D. All of these | |
| 468. |
…………… preference shares can be redeemed |
| A. | Fully paid |
| B. | Partly paid |
| C. | Both A and B |
| D. | None of these |
| Answer» A. Fully paid | |
| 469. |
Profit available for dividend distribution is called …………. |
| A. | Capital profit |
| B. | Divisible profit |
| C. | Capital Reserve |
| D. | None of these |
| Answer» B. Divisible profit | |
| 470. |
Which of the following is an example for capital profit? |
| A. | Capital Reserves |
| B. | Security premium |
| C. | Forfeited shares |
| D. | All of these. |
| Answer» D. All of these. | |
| 471. |
Which of the following is an example for divisible profit? |
| A. | General Reserve |
| B. | Security premium |
| C. | Forfeited shares |
| D. | All of these. |
| Answer» A. General Reserve | |
| 472. |
In case of redemption out f profit, an amount equal to face value of shares so redeemed should be transferred to ………… |
| A. | Security premium |
| B. | Capital Redemption Reserve |
| C. | Dividend Equalization Reserve |
| D. | None of these |
| Answer» B. Capital Redemption Reserve | |
| 473. |
Capital Redemption Reserve Account can be utilized for……… |
| A. | Writing off past losses |
| B. | Issuing partly paid bonus shares |
| C. | Writing off capital losses |
| D. | Issuing fully paid bonus shares |
| Answer» D. Issuing fully paid bonus shares | |
| 474. |
The allotment of shares in case of oversubscription is called….. |
| A. | Pro‐rata allotment |
| B. | Private Placement |
| C. | Offer for sale |
| D. | None of these |
| Answer» A. Pro‐rata allotment | |
| 475. |
Security premium account can be utilized for …………. |
| A. | Issuing fully paid bonus shares |
| B. | Write off preliminary expenses |
| C. | Write off underwriting commission |
| D. | All of these |
| Answer» D. All of these | |
| 476. |
…………..is that portion of issued capital which is applied for by the public. |
| A. | Issued capital |
| B. | Subscribed capital |
| C. | Nominal Capital |
| D. | Paid up capital |
| Answer» B. Subscribed capital | |
| 477. |
……………is an instrument of acknowledgment of debt. |
| A. | Equity share |
| B. | Preference Share |
| C. | Debenture |
| D. | All of these |
| Answer» C. Debenture | |
| 478. |
Debenture represents ………. Of a company |
| A. | Borrowed capital |
| B. | Owned capital |
| C. | Hybrid capital |
| D. | None of these |
| Answer» A. Borrowed capital | |
| 479. |
Debenture holders will get …….. |
| A. | Dividend |
| B. | Interest |
| C. | Profit |
| D. | All of these |
| Answer» B. Interest | |
| 480. |
Debenture holders are the ……….of a company |
| A. | Debtors |
| B. | Owners |
| C. | Creditors |
| D. | Borrowers |
| Answer» C. Creditors | |
| 481. |
A charge created not on specific assets but generally on all assets is known as…………. |
| A. | Fixed charge |
| B. | Floating charge |
| C. | Mortgage |
| D. | None of these |
| Answer» B. Floating charge | |
| 482. |
…………..debentures can be transferred only with the knowledge of the company. |
| A. | Naked |
| B. | Mortgage |
| C. | Registered |
| D. | Bearer |
| Answer» C. Registered | |
| 483. |
………..debentures are transferable by mere delivery |
| A. | Naked |
| B. | Mortgage |
| C. | Registered |
| D. | Bearer |
| Answer» D. Bearer | |
| 484. |
…………debentures are secured by the assets of the company |
| A. | Naked |
| B. | Mortgage |
| C. | Registered |
| D. | Bearer |
| Answer» B. Mortgage | |
| 485. |
Unsecured debentures are called as ……………….debentures |
| A. | Naked |
| B. | Mortgage |
| C. | Registered |
| D. | Bearer |
| Answer» A. Naked | |
| 486. |
FCD stands for …………… |
| A. | Fixed Charge Debentures |
| B. | Floating Charge Debentures |
| C. | Fully Convertible Debentures |
| D. | None of these |
| Answer» C. Fully Convertible Debentures | |
| 487. |
When debentures are issued as a consideration of purchase of assets …………. Is debited. |
| A. | Debenture Account |
| B. | Cash Account |
| C. | Assets Account |
| D. | Creditor Account |
| Answer» C. Assets Account | |
| 488. |
Discount or loss on issue of debenture is a …………. |
| A. | Capital Profit |
| B. | Revenue Receipt |
| C. | Capital Loss |
| D. | Revenue Expense |
| Answer» C. Capital Loss | |
| 489. |
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 | |
| 490. |
Debentures can be redeemed out of ………. |
| A. | Fresh issue |
| B. | Capital |
| C. | Profit |
| D. | All of these |
| Answer» D. All of these | |
| 491. |
Interest on debenture is ………. |
| A. | Adjustment of profit |
| B. | Appropriation of Profit. |
| C. | Charge on profit |
| D. | None of these |
| Answer» C. Charge on profit | |
| 492. |
Debentures are shown in the balance sheet under the head ……….. |
| A. | Secured loans |
| B. | Unsecured loans |
| C. | Provisions |
| D. | Current liabilities |
| Answer» A. Secured loans | |
| 493. |
After realizing all the investments, the balance in the sinking fund account is transferred to ………… |
| A. | Profit and Loss A/c |
| B. | Debenture Account |
| C. | Sinking fund A/c |
| D. | Capital reserve |
| Answer» D. Capital reserve | |
| 494. |
When own debentures are cancelled, any profit on cancellation is transferred to …….. |
| A. | General Reserve |
| B. | Capital Reserve |
| C. | Profit and Loss A/c |
| D. | Debenture A/c |
| Answer» B. Capital Reserve | |
| 495. |
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 | |
| 496. |
If the purchase price of debentures excluding 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» A. Ex‐interest | |
| 497. |
As per ………..it is the statutory obligation of companies to prepare their final accounts. |
| A. | Sec 210 |
| B. | Sec 211 |
| C. | Sec 212 |
| D. | Sec 214 |
| Answer» A. Sec 210 | |
| 498. |
The Balance sheet of Companies are prepare in the form ………. |
| A. | Part I of Schedule V |
| B. | Part I of Schedule VI |
| C. | Part II of Schedule V |
| D. | Part II of Schedule VI |
| Answer» B. Part I of Schedule VI | |
| 499. |
The Profit and Loss Account of companies is prepared in the form …………. |
| A. | Part I of Schedule V |
| B. | Part I of Schedule VI |
| C. | Part II of Schedule V |
| D. | Part II of Schedule VI |
| Answer» D. Part II of Schedule VI | |
| 500. |
The dividend declared between two annual general meeting is called ………. |
| A. | Proposed Dividend |
| B. | Final Dividend |
| C. | Interim Dividend |
| D. | None of these |
| Answer» C. Interim Dividend | |
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