McqMate
Chapters
| 501. |
The net profit available for dividend distribution is called ………… |
| A. | Net Profit |
| B. | Surplus |
| C. | Divisible Profit |
| D. | Capital Profit |
| Answer» C. Divisible Profit | |
| 502. |
Dividend in the form of shares is called ……….. |
| A. | Interim Dividend |
| B. | Scrip Dividend |
| C. | Final Dividend |
| D. | None of these |
| Answer» B. Scrip Dividend | |
| 503. |
………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 | |
| 504. |
The dividend recommended by the Board of Directors is called……… |
| A. | Proposed Dividend |
| B. | Final Dividend |
| C. | Interim Dividend |
| D. | None of these |
| Answer» A. Proposed Dividend | |
| 505. |
Unclaimed dividend is shown in the balance sheet under the head …….. |
| A. | Reserves and Surplus |
| B. | Current Liabilities |
| C. | Loans and Advances |
| D. | Current Assets |
| Answer» B. Current Liabilities | |
| 506. |
……..is a charge against profit of the company |
| A. | Provision |
| B. | Reserves |
| C. | Surplus |
| D. | All of these |
| Answer» A. Provision | |
| 507. |
CDT stands for…. |
| A. | Company Direct Tax |
| B. | Corporate Dividend Tax |
| C. | Combined Direct Tax |
| D. | None of these |
| Answer» B. Corporate Dividend Tax | |
| 508. |
An item which may or may not be the liability of the company due to happening of certain event is………… |
| A. | Current Liability |
| B. | Fixed Liability |
| C. | Contingent Liabilit |
| D. | None of these |
| Answer» C. Contingent Liabilit | |
| 509. |
Advance tax paid is shown in the balance sheet under the head………. |
| A. | Current Liabilities |
| B. | Loans and Advances |
| C. | Fixed Assets |
| D. | None of these |
| Answer» B. Loans and Advances | |
| 510. |
Preliminary expenses not written off are shown in the balance sheet under the head… |
| A. | Current Assets |
| B. | Investments |
| C. | Current Liabilities |
| D. | Miscellaneous Expenditure |
| Answer» D. Miscellaneous Expenditure | |
| 511. |
If rate of proposed dividend is less than 10% of paid up capital, the rate of profit transferred to Reserve shall be……….. |
| A. | 10% |
| B. | 2.5% |
| C. | 5% |
| D. | Nil |
| Answer» D. Nil | |
| 512. |
………is concerned with accounting for amalgamation. |
| A. | AS – 10 |
| B. | AS – 12 |
| C. | AS – 14 |
| D. | AS – 16 |
| Answer» C. AS – 14 | |
| 513. |
In ……………, a new company is formed to take over the business of two or more existing companies which go into liquidation |
| A. | Amalgamation |
| B. | External reconstruction |
| C. | Absorption |
| D. | Internal reconstruction |
| Answer» A. Amalgamation | |
| 514. |
Amalgamation is done for …………. |
| A. | Eliminating competition |
| B. | Dominating the market |
| C. | Enjoying the benefits of large scale operation |
| D. | All of these |
| Answer» D. All of these | |
| 515. |
Company which is amalgamated into another company is called …………….. |
| A. | Transferor company |
| B. | Transferee Company |
| C. | Purchasing company |
| D. | Holding company |
| Answer» A. Transferor company | |
| 516. |
…………….is the company into which a company is amalgamated. |
| A. | Transferor company |
| B. | Transferee Company |
| C. | Subsidiary company |
| D. | Holding company |
| Answer» B. Transferee Company | |
| 517. |
Purchase consideration is payable to ………….. |
| A. | Creditors |
| B. | Shareholders |
| C. | Debenture holders |
| D. | All of these |
| Answer» B. Shareholders | |
| 518. |
In …..., a new company is formed to take over the business of an existing company which goes into liquidation. |
| A. | Amalgamation |
| B. | External reconstruction |
| C. | Absorption |
| D. | Internal reconstruction |
| Answer» B. External reconstruction | |
| 519. |
The purchase of an existing company which goes into liquidation by another existing company is known as ………….. |
| A. | Amalgamation |
| B. | External reconstruction |
| C. | Absorption |
| D. | Internal reconstruction |
| Answer» C. Absorption | |
| 520. |
Pooling of interest method is used in the case of …………….. |
| A. | Amalgamation in the nature of purchase |
| B. | External reconstruction |
| C. | Amalgamation in the nature of merger |
| D. | Internal reconstruction |
| Answer» C. Amalgamation in the nature of merger | |
| 521. |
Amalgamation adjustment account is opened in the books of Transferee Company to incorporate ………….. |
| A. | The assets o transferor company |
| B. | The statutory reserves of Transferor Company |
| C. | The liabilities of transferor company |
| D. | The statutory reserves of Transferee Company. |
| Answer» B. The statutory reserves of Transferor Company | |
| 522. |
Loss on realisation is transferred to ………….. |
| A. | Transferee Company Account |
| B. | Transferor Company Account |
| C. | Shareholders Account |
| D. | Creditors Account |
| Answer» C. Shareholders Account | |
| 523. |
………… is a statutory reserve |
| A. | General Reserve |
| B. | Export profit reserve |
| C. | Dividend equalization reserve |
| D. | Capital Reserve |
| Answer» B. Export profit reserve | |
| 524. |
Liquidation expenses paid by the transferee company are debited to ……… |
| A. | Liquidation expense Account |
| B. | Liquidators Account |
| C. | Preliminary expenses Account |
| D. | Goodwill Account |
| Answer» D. Goodwill Account | |
| 525. |
Under purchase method, the excess of net assets over purchase consideration is ………. |
| A. | Debited to goodwill account |
| B. | Credited to goodwill account |
| C. | Credited to capital reserve account |
| D. | Debited to capital reserve account |
| Answer» C. Credited to capital reserve account | |
| 526. |
X Ltd takes over Y Ltd and agrees to discharge debenture holders of Y Ltd at a premium of 5%. The premium should be debited to ……… |
| A. | Realisation Account |
| B. | Shareholders Account |
| C. | P&L Account |
| D. | None of these |
| Answer» A. Realisation Account | |
| 527. |
Which of the following is not a statutory reserve? |
| A. | General reserve |
| B. | Development rebate reserve |
| C. | Investment allowance reserve |
| D. | Workmen compensation fund |
| Answer» A. General reserve | |
| 528. |
Realisation Account is a ………….. |
| A. | Real Account |
| B. | Personal Account |
| C. | Nominal Account |
| D. | Suspense Account |
| Answer» C. Nominal Account | |
| 529. |
……….is not transferred to realisation account |
| A. | Goodwill |
| B. | Fictitious asset |
| C. | Trademark |
| D. | All of these |
| Answer» B. Fictitious asset | |
| 530. |
Trade liabilities include ……….. |
| A. | Creditors |
| B. | Debentures |
| C. | Bank overdraft |
| D. | All of these |
| Answer» A. Creditors | |
| 531. |
Purchase consideration includes ……….. |
| A. | Cash |
| B. | Shares |
| C. | Debentures |
| D. | All of these |
| Answer» D. All of these | |
| 532. |
In………., an existing company’s financial structure is reorganized without liquidating the existing company and forming a new company. |
| A. | Amalgamation |
| B. | External reconstruction |
| C. | Absorption |
| D. | Internal reconstruction |
| Answer» D. Internal reconstruction | |
| 533. |
Internal reconstruction is done due to ……….. |
| A. | Accumulated losses |
| B. | Shortage of working capital |
| C. | Large amount of fictitious assets |
| D. | All of these |
| Answer» D. All of these | |
| 534. |
In ………., the company does not loss its identity |
| A. | Amalgamation |
| B. | External reconstruction |
| C. | Absorption |
| D. | Internal reconstruction |
| Answer» D. Internal reconstruction | |
| 535. |
Internal reconstruction can be ……… |
| A. | Alteration of share capital |
| B. | Reduction of share capital |
| C. | Re‐organization of capital |
| D. | All of these |
| Answer» D. All of these | |
| 536. |
Capital of a company can be reduced by ………… |
| A. | Authorization of Articles |
| B. | Passing of a special resolution |
| C. | Confirmation of court |
| D. | All of these |
| Answer» D. All of these | |
| 537. |
Capital Reduction Account is a ……….. |
| A. | Nominal Account |
| B. | Permanent Account |
| C. | Temporary Account |
| D. | None of these |
| Answer» C. Temporary Account | |
| 538. |
The balance in Capital Reduction Account is transferred to ………… |
| A. | General Reserve |
| B. | Profit and loss Account |
| C. | Capital Reserve |
| D. | Goodwill Account |
| Answer» C. Capital Reserve | |
| 539. |
In internal reconstruction, increase in the value of fixed assets is credited to………. |
| A. | Capital reserve |
| B. | Share capital |
| C. | General reserve |
| D. | Capital reduction account |
| Answer» D. Capital reduction account | |
| 540. |
In case of subdivision of share capital, the amount of share capital………. |
| A. | Increases |
| B. | Decreases |
| C. | Does not change |
| D. | None of these |
| Answer» C. Does not change | |
| 541. |
In case of subdivision of share capital, the total number of shares ………. |
| A. | Increases |
| B. | Decreases |
| C. | Does not change |
| D. | None of these |
| Answer» A. Increases | |
| 542. |
In internal reconstruction, the existing company will be ………. |
| A. | Amalgamated |
| B. | Absorbed |
| C. | Liquidated |
| D. | None of these |
| Answer» D. None of these | |
| 543. |
In internal reconstruction, amount sacrificed by shareholders are credited to…….. |
| A. | Capital reserve |
| B. | General Reserve |
| C. | Capital reduction account |
| D. | None of these |
| Answer» C. Capital reduction account | |
| 544. |
When company converts its equity shares into capital stock, the account to be credited is … |
| A. | Equity share capital account |
| B. | Equity capital stock account |
| C. | No entry |
| D. | None of these |
| Answer» B. Equity capital stock account | |
| 545. |
Alteration of shares of smaller amounts into shares of larger amount is called ………. |
| A. | Subdivision of shares |
| B. | Consolidation of shares |
| C. | Cancellation of shares |
| D. | None of these |
| Answer» B. Consolidation of shares | |
| 546. |
In case of consolidation of share capital, the total number of shares …………. |
| A. | Increases |
| B. | Decreases |
| C. | Does not change |
| D. | None of these |
| Answer» B. Decreases | |
| 547. |
. ……..is called a factory of credit. |
| A. | Company |
| B. | Firm |
| C. | Bank |
| D. | None of these |
| Answer» C. Bank | |
| 548. |
Banking companies are governed in India by ………. |
| A. | Banking Regulation Act |
| B. | Indian Companies Act |
| C. | Reserve Bank of India Act |
| D. | All of these |
| Answer» A. Banking Regulation Act | |
| 549. |
CRR stands for ………… |
| A. | Current Reserve Ratio |
| B. | Capital Reserve Ratio |
| C. | Cash Reserve Ratio |
| D. | Capital Redemption Ratio |
| Answer» C. Cash Reserve Ratio | |
| 550. |
SLR stands for …………… |
| A. | Savings Level Ratio |
| B. | Statutory Liquidity Ratio |
| C. | Standard Liquidity Ratio |
| D. | None of these |
| Answer» B. Statutory Liquidity Ratio | |
| 551. |
The method of rapidly posting entries in the books of banks is called as ………. |
| A. | Single Entry |
| B. | Cash Method |
| C. | Slip System |
| D. | None of these |
| Answer» C. Slip System | |
| 552. |
The P&L A/c of Banking Companies are prepared as per ………….of Banking Regulation Act. |
| A. | Form A of Schedule III |
| B. | Form B of Schedule III |
| C. | Form A of Schedule VI |
| D. | Form B of Schedule VI |
| Answer» B. Form B of Schedule III | |
| 553. |
…….of profit is transferred to statutory reserves. |
| A. | 10% |
| B. | 20% |
| C. | 25% |
| D. | 30% |
| Answer» C. 25% | |
| 554. |
Banks show the provision for income tax under the head ………. |
| A. | Contingent liabilities |
| B. | Deposits |
| C. | Other liabilities and provisions |
| D. | Borrowings |
| Answer» C. Other liabilities and provisions | |
| 555. |
Rebate on bills discounted is ……….. |
| A. | An income accrued but not received |
| B. | A liability |
| C. | An expense |
| D. | Income received in advance |
| Answer» D. Income received in advance | |
| 556. |
NPA stands for…………. |
| A. | Non‐ Performing Assets |
| B. | Normal Performing Assets |
| C. | National Performing Asset |
| D. | None of these |
| Answer» A. Non‐ Performing Assets | |
| 557. |
Schedule 1 is concerned with …………. |
| A. | Cash and balance with RBI |
| B. | Capital |
| C. | Reserves and Surplus |
| D. | Investments |
| Answer» B. Capital | |
| 558. |
………… is shown under Schedule 15. |
| A. | Interest earned |
| B. | Profit |
| C. | Interest Expended |
| D. | Appropriations |
| Answer» C. Interest Expended | |
| 559. |
Acceptance, endorsements and other obligations come under the head… |
| A. | Provisions and Contingencies |
| B. | Contingent liabilities |
| C. | Deposits |
| D. | Borrowings |
| Answer» B. Contingent liabilities | |
| 560. |
Assets are NPAs for a period not exceeding 12 months are called …………. |
| A. | Standard Assets |
| B. | Substandard Assets |
| C. | Doubtful Assets |
| D. | Loss Assets |
| Answer» B. Substandard Assets | |
| 561. |
Assets are NPAs for a period exceeding 12 months are called …………. |
| A. | Standard Assets |
| B. | Substandard Assets |
| C. | Doubtful Assets |
| D. | Loss Assets |
| Answer» C. Doubtful Assets | |
| 562. |
………is a form of agreement between two parties in which one party agrees to make good for loss of another. |
| A. | Contract |
| B. | Insurance |
| C. | Banking |
| D. | Mutual fund |
| Answer» B. Insurance | |
| 563. |
The agreement of insurance is called as ……….. |
| A. | Policy |
| B. | Premium |
| C. | Annuity |
| D. | None of these |
| Answer» A. Policy | |
| 564. |
The consideration in insurance for covering the risk is called …………. |
| A. | Claim |
| B. | Premium |
| C. | Annuity |
| D. | None of these |
| Answer» B. Premium | |
| 565. |
……………is the party who undertakes the risk in insurance. |
| A. | Insurer |
| B. | Assurer |
| C. | Underwriter |
| D. | All of these |
| Answer» D. All of these | |
| 566. |
The party whose risk is covered in insurance is known as ………. |
| A. | Insurer |
| B. | Insured |
| C. | Underwriter |
| D. | None of these |
| Answer» B. Insured | |
| 567. |
In …………., the insurer agrees to pay a certain sum of money to the policyholder either on his death or a certain age, which ever is less. |
| A. | Fire Insurance |
| B. | Marine Insurance |
| C. | Burglary Insurance |
| D. | Life Insurance |
| Answer» D. Life Insurance | |
| 568. |
General Insurance includes ……………. |
| A. | Fire Insurance |
| B. | Marine Insurance |
| C. | Burglary Insurance |
| D. | All of these |
| Answer» D. All of these | |
| 569. |
LIC was nationalized in ………….. |
| A. | 1935 |
| B. | 1950 |
| C. | 1956 |
| D. | 1964 |
| Answer» C. 1956 | |
| 570. |
Insurance business in India is regulated by …………. |
| A. | LIC |
| B. | IRDA |
| C. | RBI |
| D. | SEBI |
| Answer» B. IRDA | |
| 571. |
Under …………., the sum assured is given to the beneficiary only on death of policyholder. |
| A. | Whole Life Policy |
| B. | Endowment Policy |
| C. | Annuity |
| D. | None of these |
| Answer» A. Whole Life Policy | |
| 572. |
………..is the amount payable to the insured on the happening of event. |
| A. | Premium |
| B. | Annuity |
| C. | Claim |
| D. | Policy |
| Answer» C. Claim | |
| 573. |
An annual payment which an insurer guarantees to pay for lump sum money received in the beginning is called …………. |
| A. | Premium |
| B. | Annuity |
| C. | Claim |
| D. | Policy |
| Answer» B. Annuity | |
| 574. |
The amount given to the policyholder due to his inability of paying further premium is called ………….. |
| A. | Annuity |
| B. | Bonus |
| C. | Surrender value |
| D. | Claim |
| Answer» C. Surrender value | |
| 575. |
…………..is an agreement between two insurance companies whereby one transfers a part of risk to other. |
| A. | Reinsurance |
| B. | Sub insurance |
| C. | Shared Policy |
| D. | None of these |
| Answer» A. Reinsurance | |
| 576. |
Revenue Account is also called …………. |
| A. | Shareholders’ Account |
| B. | Policyholders’ Account |
| C. | Creditors’ Account |
| D. | None of these |
| Answer» B. Policyholders’ Account | |
| 577. |
Valuation balance sheet is prepared by ……………business. |
| A. | Fire Insurance |
| B. | Marine Insurance |
| C. | Life Insurance |
| D. | All of these |
| Answer» C. Life Insurance | |
| 578. |
The commission earned by insurance companies from others for giving them business under reinsurance is called ………………… |
| A. | Commission on reinsurance accepted |
| B. | Agents’ commission |
| C. | Commission on reinsurance ceded |
| D. | None of these |
| Answer» C. Commission on reinsurance ceded | |
| 579. |
The commission given by insurance companies to others for receiving business under reinsurance is called ………………… |
| A. | Commission on reinsurance accepted |
| B. | Agents’ commission |
| C. | Commission on reinsurance ceded |
| D. | None of these |
| Answer» A. Commission on reinsurance accepted | |
| 580. |
Profit and Loss Account of General Insurance Companies are prepared in ………… |
| A. | Form A‐PL |
| B. | Form B‐RA |
| C. | Form B‐PL |
| D. | Form B‐BS |
| Answer» C. Form B‐PL | |
| 581. |
The principle of subrogation is applicable to…………… |
| A. | Fire Insurance |
| B. | Marine Insurance |
| C. | Burglary Insurance |
| D. | All of these |
| Answer» D. All of these | |
| 582. |
……….is an agreement between two insurance companies whereby one transfers a part of risk to other. |
| A. | Reinsurance |
| B. | Sub insurance |
| C. | Shared Policy |
| D. | None of these |
| Answer» A. Reinsurance | |
| 583. |
The commission given by insurance companies to others for receiving business under reinsurance is called ………………… |
| A. | Commission on reinsurance accepted |
| B. | Agents’ commission |
| C. | Commission on reinsurance ceded |
| D. | None of these |
| Answer» A. Commission on reinsurance accepted | |
| 584. |
Profit and Loss Account of General Insurance Companies are prepared in … ……… |
| A. | Form A‐PL |
| B. | Form B‐RA |
| C. | Form B‐PL |
| D. | Form B‐BS |
| Answer» C. Form B‐PL | |
| 585. |
Section ….. of the Companies Act deals with issue of bonus shares |
| A. | 63 |
| B. | 73 |
| C. | 68 |
| D. | 70 |
| Answer» A. 63 | |
| 586. |
When 4,000 equity shares of Rs.10 each is bought back at Rs.20 per share, the amount to be transferred to Capital Redemption Reserve is |
| A. | 80,000 |
| B. | 40,000 |
| C. | 4,000 |
| D. | none |
| Answer» B. 40,000 | |
| 587. |
A contract that evidences a residual interest in the assets of an undertaking after deducting all its liabilities is called |
| A. | bilateral contract |
| B. | equity instrument |
| C. | standard instrument |
| D. | none |
| Answer» B. equity instrument | |
| 588. |
Bonus shares can be issued only on getting approval of |
| A. | articles of the company |
| B. | board of directors |
| C. | shareholders |
| D. | all |
| Answer» D. all | |
| 589. |
Unsecured debentures are otherwise known as……. Debentures |
| A. | simple |
| B. | mortgage |
| C. | complex |
| D. | none |
| Answer» A. simple | |
| 590. |
Ind AS 28 deal with…….. |
| A. | investments in association and joint ventures |
| B. | investment in parent company |
| C. | investment in subsidiary company |
| D. | investment in foreign company |
| Answer» A. investments in association and joint ventures | |
| 591. |
The new Electricity Act was passed in the year… |
| A. | 2003 |
| B. | 2008 |
| C. | 2004 |
| D. | 2000 |
| Answer» A. 2003 | |
| 592. |
IFRS….. deals with business combination |
| A. | IFRS 4 |
| B. | IFRS 3 |
| C. | IFRS 6 |
| D. | none |
| Answer» B. IFRS 3 | |
| 593. |
The principle of subrogation is applicable to…………… |
| A. | Fire Insurance |
| B. | Marine Insurance |
| C. | Burglary Insurance |
| D. | All of the |
| Answer» D. All of the | |
| 594. |
Capital redemption reserve and security premium can be utilised for issuing ………bonus shares |
| A. | fully paid |
| B. | partly paid |
| C. | fully paid or partly paid |
| D. | none |
| Answer» A. fully paid | |
| 595. |
In case of buyback of shares by a listed company, the letter of offer to the shareholders shall be dispatched not earlier than – |
| A. | 10 days from its submission to the SEBI in draft form |
| B. | 15 days from its submission to the SEBI in draft form |
| C. | 21 days from its submission to the SEBI in draft form |
| D. | 30 days from its submission to the SEBI in draft form |
| Answer» C. 21 days from its submission to the SEBI in draft form | |
| 596. |
Under double account system, fixed assets are shown at….. |
| A. | original cost |
| B. | historical cost |
| C. | future cost |
| D. | none |
| Answer» A. original cost | |
| 597. |
Own debenture account will appear on the …… side of B/S |
| A. | Liability |
| B. | asset |
| C. | both side |
| D. | none |
| Answer» B. asset | |
| 598. |
The most important income of a bank is |
| A. | commission |
| B. | interest |
| C. | registration fee |
| D. | locker rent |
| Answer» B. interest | |
| 599. |
Under Ind AS 103, assets and liabilities are recorded at |
| A. | fair value |
| B. | book value |
| C. | intrinsic value |
| D. | none |
| Answer» A. fair value | |
| 600. |
When the directors refund the fees already received by them,……. a/c is credited. |
| A. | cash |
| B. | Capital reduction |
| C. | directors |
| D. | fees |
| Answer» B. Capital reduction | |
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