McqMate
Chapters
| 601. |
In the case of marine hull insurance, reserve for unexpired risk is to be maintained @....... %of net premium |
| A. | 50% |
| B. | 80% |
| C. | 100% |
| D. | 20% |
| Answer» C. 100% | |
| 602. |
The cost of replacing an asset in its original condition is known as…… |
| A. | replacement cost |
| B. | revaluation cost |
| C. | revenue cost |
| D. | reconstruction cost |
| Answer» A. replacement cost | |
| 603. |
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 | |
| 604. |
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 Sch edule VI |
| D. | Form B of Schedule VI |
| Answer» B. Form B of Schedule III | |
| 605. |
…….. deals with separate financial statements. |
| A. | Ind AS 110 |
| B. | Ind AS 100 |
| C. | Ind AS 112 |
| D. | Ind AS 120 |
| Answer» A. Ind AS 110 | |
| 606. |
The pre- acquisition loss of subsidiary should be deducted from …….. while calculating net assets |
| A. | share capital |
| B. | equity share capital |
| C. | debentures |
| D. | none |
| Answer» B. equity share capital | |
| 607. |
Ind AS ……. Deals with share based payments |
| A. | 102 |
| B. | 110 |
| C. | 101 |
| D. | 105 |
| Answer» A. 102 | |
| 608. |
The accounting concept that is principally used to classify leases into operating and finance is……. |
| A. | substance over from |
| B. | prudence |
| C. | neutrality |
| D. | completeness |
| Answer» A. substance over from | |
| 609. |
Buy back of equity shares is a process of capital …….. |
| A. | reduction |
| B. | restructuring |
| C. | control |
| D. | none |
| Answer» B. restructuring | |
| 610. |
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 | |
| 611. |
………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 | |
| 612. |
The buy back of shares is also known as …….. |
| A. | corporate redemption |
| B. | corporate equity repurchase |
| C. | corporate equity valuation |
| D. | none |
| Answer» B. corporate equity repurchase | |
| 613. |
The buy back of shares may be done |
| A. | at par |
| B. | at discount |
| C. | at premium |
| D. | all the above |
| Answer» D. all the above | |
| 614. |
Interest on debenture is …. |
| A. | adjustment of profit |
| B. | appropriation of profit |
| C. | charge on profit |
| D. | none |
| Answer» C. charge on profit | |
| 615. |
After all the debentures are redeemed the balance in the sinking fund is transferred to |
| A. | General reserve |
| B. | statutory reserve |
| C. | both A and B |
| D. | none |
| Answer» A. General reserve | |
| 616. |
Debenture is document which creates a…… |
| A. | debt |
| B. | credit |
| C. | both A and B |
| D. | none |
| Answer» A. debt | |
| 617. |
When own debentures are cancelled, any profit on cancellation is transferred to |
| A. | general reserve |
| B. | capital reserve |
| C. | p&laccount |
| D. | none |
| Answer» B. capital reserve | |
| 618. |
Profit not available for dividend includes |
| A. | CRR |
| B. | P&L account credit balance |
| C. | security premium |
| D. | None |
| Answer» B. P&L account credit balance | |
| 619. |
All the …… profits are not available for the purpose of redemption of preference shares |
| A. | revenue |
| B. | capital |
| C. | Both A and B |
| D. | none |
| Answer» B. capital | |
| 620. |
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 | |
| 621. |
The principle of subrogation is applicable to…………… |
| A. | Fire Insurance |
| B. | Marine Insurance |
| C. | Burglary Insurance |
| D. | All of thes |
| Answer» D. All of thes | |
| 622. |
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 | |
| 623. |
The security premium account is shown in the balance sheet under the head………. |
| A. | Share capital |
| B. | Reserves & Surplus |
| C. | Secured loans |
| D. | Current liabilit |
| Answer» B. Reserves & Surplus | |
| 624. |
……..should be deducted from the share capital to determine the paid up cap ital. |
| A. | Security premium |
| B. | Calls in advance |
| C. | Calls in arrears |
| D. | Discount on issue |
| Answer» C. Calls in arrears | |
| 625. |
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 | |
| 626. |
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 | |
| 627. |
Debentures can be redeemed out of ………. |
| A. | Fresh issue |
| B. | Capital |
| C. | Profit |
| D. | All of these |
| Answer» D. All of these | |
| 628. |
When preference shares are redeemed, it amounts to |
| A. | increase in share capital |
| B. | decrease in share capital |
| C. | Both A and B |
| D. | none |
| Answer» D. none | |
| 629. |
Capital redemption reserve is created…. |
| A. | out of security premium |
| B. | to meet legal requirements |
| C. | Voluntarily |
| D. | none |
| Answer» B. to meet legal requirements | |
| 630. |
No company limited by shares shall issue any preference share which is redeemable after the expiry of …….. years from the date of issue. |
| A. | 20 |
| B. | 15 |
| C. | 10 |
| D. | 25 |
| Answer» A. 20 | |
| 631. |
Under Double account system, the balance sheet is prepared in ……parts |
| A. | three |
| B. | two |
| C. | one |
| D. | none |
| Answer» B. two | |
| 632. |
In case of electricity companies, contingency reserve is created until it amounts to ….. of the original cost of the fixed assets. |
| A. | 5% |
| B. | 6% |
| C. | 4% |
| D. | 8% |
| Answer» A. 5% | |
| 633. |
The profit and loss account under double account system is termed as….. |
| A. | revenue account |
| B. | income and expenditure account |
| C. | P&L account |
| Answer» A. revenue account | |
| 634. |
General insurance policies are generally taken for |
| A. | one year |
| B. | two years |
| C. | three years |
| D. | none |
| Answer» A. one year | |
| 635. |
IRDA Act came into effect in |
| A. | 1938 |
| B. | 1999 |
| C. | 2000 |
| D. | none |
| Answer» B. 1999 | |
| 636. |
Reserve for unexpired risk is shown under |
| A. | reserves and surplus |
| B. | current liabilities |
| C. | provisions |
| D. | none |
| Answer» C. provisions | |
| 637. |
The Insurance Act came in to effect in ….. |
| A. | 1956 |
| B. | 1998 |
| C. | 1938 |
| D. | 2000 |
| Answer» C. 1938 | |
| 638. |
The fixed assets of an insurance company are shown in |
| A. | Schedule 6 |
| B. | Schedule 7 |
| C. | Schedule 8 |
| D. | none |
| Answer» D. none | |
| 639. |
Banks show the provisions for income tax under the head |
| A. | contingency accounts |
| B. | contingent liability |
| C. | other liabilities and provisions |
| D. | borrowings |
| Answer» C. other liabilities and provisions | |
| 640. |
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 | |
| 641. |
Grants related to depreciable assets should be recognised as……., in the period in which their depreciation is charged |
| A. | income |
| B. | appropriaton |
| C. | provisions |
| D. | none |
| Answer» A. income | |
| 642. |
….. lease is a lease that transfers substantially all the risks and rewards incidental o ownership of assets |
| A. | finance |
| B. | operating |
| C. | advanced |
| D. | maturity |
| Answer» A. finance | |
| 643. |
……….. is called factory of credit |
| A. | company |
| B. | bank |
| C. | firm |
| D. | none |
| Answer» B. bank | |
| 644. |
Banking companies are governed in India by |
| A. | Banking Regulation Act |
| B. | Indian Companies Act |
| C. | RBI Act |
| D. | all the |
| Answer» A. Banking Regulation Act | |
| 645. |
Schedule 1 is concerned with |
| A. | Capital |
| B. | Reserves and surplus |
| C. | interest earned |
| D. | none |
| Answer» A. Capital | |
| 646. |
Interest on debentures is calculated on ______. |
| A. | Issue price. |
| B. | redeemable price |
| C. | face value |
| D. | market price. |
| Answer» C. face value | |
| 647. |
Transfer to capital redemption reserve can be made from ____. |
| A. | capital reserve. |
| B. | forfeited shares. |
| C. | general reserve |
| D. | securities |
| Answer» C. general reserve | |
| 648. |
Rights shares are those shares which are __________. |
| A. | first offered to the existing shareholders |
| B. | issued by a newly formed company. |
| C. | issued to the directors of the company. |
| D. | issued to holders of convertible debentures. |
| Answer» A. first offered to the existing shareholders | |
| 649. |
In subdivision of shares, …… capital does not change |
| A. | Paid up |
| B. | Issued |
| C. | unissued |
| D. | none |
| Answer» A. Paid up | |
| 650. |
No journal entry is required for the cancellation of ………. Share capital |
| A. | Unissued |
| B. | paid up |
| C. | Subscribed |
| D. | none |
| Answer» A. Unissued | |
| 651. |
All business combinations are accounted for by applying the …….. method |
| A. | acquisition method |
| B. | Equity method |
| C. | both A and B |
| D. | none |
| Answer» A. acquisition method | |
| 652. |
A term loan will be treated as NPA if interest or instalment and principal remain overdue for a period more than ……. Days |
| A. | 75 |
| B. | 50 |
| C. | 90 |
| D. | 100 |
| Answer» C. 90 | |
| 653. |
Which of the following does not include under the head other assets |
| A. | silver |
| B. | interest accrued |
| C. | gold |
| D. | inter office adjustment |
| Answer» C. gold | |
| 654. |
………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 | |
| 655. |
Clear profit is the difference between |
| A. | reasonable return and appropriations |
| B. | total income and expenditure |
| C. | reasonable return and total profit |
| D. | none |
| Answer» B. total income and expenditure | |
| 656. |
Surplus of electricity company is limited to |
| A. | 20% of capital base |
| B. | 20% of total assets |
| C. | 20% of clear profit |
| D. | 20% of reasonable return |
| Answer» D. 20% of reasonable return | |
| 657. |
In the case of railway companies rent on leased lines is shown on |
| A. | debit side of revenue A/c |
| B. | credit side of revenue A/c |
| C. | debit side of net revenue A/c |
| D. | credit side of net revenue A/c |
| Answer» C. debit side of net revenue A/c | |
| 658. |
The acquiree in a business combination is also called a….. company |
| A. | subsidiary |
| B. | parent |
| C. | holding |
| D. | controlling |
| Answer» A. subsidiary | |
| 659. |
When 8,00,000 shares of Rs.10 each is converted in to 80,000 shares of Rs.100 each, it is a case of ……… |
| A. | sub division |
| B. | capital reduction |
| C. | consolidation |
| D. | none |
| Answer» C. consolidation | |
| 660. |
Section …… of the Companies Act 2013 deals with the issue of right shares |
| A. | 62 |
| B. | 63 |
| C. | 64 |
| D. | 68 |
| Answer» A. 62 | |
| 661. |
A company formed and registered under ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐Act 1956. |
| A. | Partnership |
| B. | Companies |
| C. | Banking companies |
| D. | none of these. |
| Answer» B. Companies | |
| 662. |
A ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ Company puts restriction on the transfer of its shares. |
| A. | Private company |
| B. | Public company |
| C. | Limited companies |
| D. | None of these. |
| Answer» A. Private company | |
| 663. |
A new company cannot issue shares at‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐. |
| A. | Premium |
| B. | Discount |
| C. | Par |
| D. | None of these. |
| Answer» B. Discount | |
| 664. |
‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is an invitation made by the company to the public for subscribing its shares. |
| A. | Memorandum of association |
| B. | Articles of association |
| C. | Prospectus |
| D. | Table A. |
| Answer» C. Prospectus | |
| 665. |
The maximum extent to which a company can raise share‐capital is called ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ capital. |
| A. | Subscribed |
| B. | Authorized |
| C. | Called |
| D. | Reserve capital. |
| Answer» B. Authorized | |
| 666. |
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ Shares carry a fixed rate of dividend. |
| A. | Preference |
| B. | Equity |
| C. | Deferred |
| D. | Sweat equity. |
| Answer» A. Preference | |
| 667. |
Share application account is in the nature of ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ account. |
| A. | Personal |
| B. | Real |
| C. | Nominal |
| D. | None of these. |
| Answer» A. Personal | |
| 668. |
The discount on the issue of shares should not exceed ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ normally. |
| A. | 10% |
| B. | 20% |
| C. | 30% |
| D. | None of these. |
| Answer» A. 10% | |
| 669. |
Profit on the re‐issue of forfeited shares is transferred to ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ account. |
| A. | General reserve |
| B. | Capital reserve |
| C. | Capital redemption reserve |
| D. | none of these. |
| Answer» B. Capital reserve | |
| 670. |
Capital reserve will appear on the liability side of the balance sheet under the head ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐. |
| A. | Reserves & surpluses |
| B. | Secured loan |
| C. | Unsecured loan |
| D. | Current liabilities. |
| Answer» A. Reserves & surpluses | |
| 671. |
Profit on re‐issue of forfeited shares will appear on the ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ side of the balance sheet. |
| A. | Asset side |
| B. | Liability side |
| C. | Debit side |
| D. | Credit side. |
| Answer» B. Liability side | |
| 672. |
Debentures are normally paid back after the expiry of the period this is technically called ‐‐‐‐‐‐‐‐‐‐‐‐. |
| A. | Renewal |
| B. | Redemption |
| C. | Conversion |
| D. | Forfeiture |
| Answer» B. Redemption | |
| 673. |
Redemption of debentures means ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ |
| A. | Creation of liability |
| B. | Discharge of liability |
| C. | Concession of liability |
| D. | None of these. |
| Answer» B. Discharge of liability | |
| 674. |
Premium on redemption of debentures account is in the nature of ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ |
| A. | Personal account |
| B. | Real account |
| C. | Nominal account |
| D. | None of these. |
| Answer» C. Nominal account | |
| 675. |
After all the debentures are redeemed; the balance in the sinking fund account is transferred to ‐‐‐‐‐‐ ‐‐‐‐‐‐‐. |
| A. | Capital reserve |
| B. | General reserve |
| C. | Profit and loss account |
| D. | Capital redemption reserve. |
| Answer» B. General reserve | |
| 676. |
When own debentures are cancelled, any profit on cancellation is transferred to ‐‐‐‐‐‐‐‐‐‐‐‐‐‐ |
| A. | Profit and Loss Account |
| B. | General reserve |
| C. | Capital Reserve |
| D. | Sinking fund |
| Answer» C. Capital Reserve | |
| 677. |
For the same purchase price profit on cancellation of debentures is more when purchase on ‐‐‐‐‐‐‐‐‐‐‐ ‐‐ basis. |
| A. | Ex‐Interest |
| B. | Cum‐Interest |
| C. | Own Debentures basis |
| D. | None of these. |
| Answer» B. Cum‐Interest | |
| 678. |
When debentures are redeemed from out of profits an equal amount is transferred to ‐‐‐‐‐‐‐‐‐‐‐‐ account. |
| A. | Capital reserve |
| B. | Capital Redemption Reserve |
| C. | Debenture redemption reserve |
| D. | General Reserve. |
| Answer» C. Debenture redemption reserve | |
| 679. |
When debentures are redeemed in annual installments the redemption is known as ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐. |
| A. | Redemption by drawing a lot |
| B. | Redemption out of capital |
| C. | Redemption out of profit |
| D. | Redemption by conversion. |
| Answer» A. Redemption by drawing a lot | |
| 680. |
a preference share is one which enjoys a preferential right regarding payment of ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ |
| A. | Dividend |
| B. | Share capital |
| C. | Interest |
| D. | Debentures. |
| Answer» B. Share capital | |
| 681. |
The issue of shares at discount provided the discount does not exceed 10% as specified in ‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐ of the companies Act. |
| A. | Section80 |
| B. | Section 81 |
| C. | Section 79 |
| D. | Section 76 |
| Answer» C. Section 79 | |
| 682. |
The share premium account can be utilized to write off the ‐‐‐‐‐‐‐‐‐‐‐‐‐ expense of the company. |
| A. | Printing expenses |
| B. | Establishment expenses |
| C. | Preliminary expenses |
| D. | None of these. |
| Answer» C. Preliminary expenses | |
| 683. |
Which of the following not the uses of share premium. |
| A. | Issue of partly paid bonus shares |
| B. | Issue of fully paid bonus shares |
| C. | Write off preliminary expense |
| D. | Write off expenses on the issue of shares. |
| Answer» B. Issue of fully paid bonus shares | |
| 684. |
When shares originally issued at discount are forfeited, the discount in respect of them is to be ‐‐‐‐‐‐‐ |
| A. | Debited |
| B. | Credited |
| C. | Paid |
| D. | None of these |
| Answer» B. Credited | |
| 685. |
Once the share premium account is credited the same, if the premium is not received. |
| A. | Cannot be debited |
| B. | Cannot be credited |
| C. | Can be debited |
| D. | Can be credited |
| Answer» C. Can be debited | |
| 686. |
Dividend is payable on the ‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of the shares. |
| A. | Paid up value |
| B. | Called up value |
| C. | Calls in advance |
| D. | None of these. |
| Answer» A. Paid up value | |
| 687. |
Share can be forfeited for ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐. |
| A. | For non‐payment of call money |
| B. | For failure to attend meetings |
| C. | Failure to repay the loan |
| D. | None of these. |
| Answer» A. For non‐payment of call money | |
| 688. |
When shares are forfeited the share capital account is debited by ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ |
| A. | Calls‐in‐arrears |
| B. | Called up amount |
| C. | Paid up amount |
| D. | Subscribed amount |
| Answer» C. Paid up amount | |
| 689. |
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ have priority over equity as to the receipt of individuals and as to assets in the event of liquidation. |
| A. | Equity shares |
| B. | Deferred shares |
| C. | Preference shares |
| D. | Sweat equity shares |
| Answer» C. Preference shares | |
| 690. |
Preference shares cannot be redeemed unless they are ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ |
| A. | Partly paid |
| B. | Fully paid |
| C. | Twice paid up |
| D. | One by two paid up. |
| Answer» B. Fully paid | |
| 691. |
Called up capital minus calls in appear is ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ |
| A. | Subscribed capital |
| B. | Registered capital |
| C. | Paid up capital |
| D. | Uncalled capital. |
| Answer» C. Paid up capital | |
| 692. |
The minimum amount of capital which must be subscribed by the public before a public company can allot shares is ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ |
| A. | Allotment money |
| B. | Minimum subscription |
| C. | Subscribed capital |
| D. | Issued capital. |
| Answer» B. Minimum subscription | |
| 693. |
Find the odd one:‐ |
| A. | Subscribed capital |
| B. | Authorized capital |
| C. | Registered capital |
| D. | Nominal capital |
| Answer» A. Subscribed capital | |
| 694. |
When 500 shares of Rs. 10 each on which Rs.3 on final call is not paid, share forfeited account is credited with ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ |
| A. | Rs.1,500 |
| B. | Rs.3,500 |
| C. | Rs.5,000 |
| D. | Rs.2,000 |
| Answer» B. Rs.3,500 | |
| 695. |
If one share is allotted for every five shares applied, an applicant for 1,000 shares will get ‐‐‐‐‐‐‐‐‐‐‐ |
| A. | 200 shares |
| B. | 5000 shares |
| C. | 5 shares |
| D. | 6 shares. |
| Answer» A. 200 shares | |
| 696. |
If a share of Rs.10 is issued at a premium of 20%, the issue price is ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ |
| A. | Rs.8 |
| B. | Rs.12 |
| C. | Rs.2 |
| D. | None of these. |
| Answer» B. Rs.12 | |
| 697. |
Right issue means issue of shares to ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ |
| A. | Existing debenture holder |
| B. | Existing share holders |
| C. | Promoters |
| D. | Institutional investors |
| Answer» B. Existing share holders | |
| 698. |
Find the odd one:‐ |
| A. | To issue fully paid bonus shares |
| B. | To Write off preliminary expenses |
| C. | To distribute dividend in cash |
| D. | To pay Premium payable on redemption of shares or debentures. |
| Answer» C. To distribute dividend in cash | |
| 699. |
When shares are oversubscribed, allotment is made on ‐‐‐‐‐‐‐‐‐‐‐‐‐‐ basis |
| A. | First come first served |
| B. | Pro‐data |
| C. | Total |
| D. | None of these. |
| Answer» B. Pro‐data | |
| 700. |
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ capital of a company can be called up only in the event of winding up. |
| A. | Reserve |
| B. | Authorized |
| C. | Registered |
| D. | Nominal |
| Answer» A. Reserve | |
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