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780+ Corporate Accounting Solved MCQs

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) .

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More MCQs
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%

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