McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Business Administration in Computer Applications (BBA [CA]) , Bachelor of Business Administration (BBA) , Bachelor of Accounting and Finance (BAF) , Bachelor of Commerce (B Com) , Cost Accounting .
Chapters
| 201. |
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 | |
| 202. |
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 | |
| 203. |
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 | |
| 204. |
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 | |
| 205. |
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 | |
| 206. |
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 | |
| 207. |
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 | |
| 208. |
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 | |
| 209. |
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 | |
| 210. |
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 | |
| 211. |
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 | |
| 212. |
. ……..is a charge against profit of the company |
| A. | Provision |
| B. | Reserves |
| C. | Surplus |
| D. | All of these |
| Answer» A. Provision | |
| 213. |
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 Liability |
| D. | None of these |
| Answer» C. Contingent Liability | |
| 214. |
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 | |
| 215. |
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 | |
| 216. |
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 | |
| 217. |
Realisation Account is a ………….. |
| A. | Real Account |
| B. | Personal Account |
| C. | Nominal Account |
| D. | Suspense Account |
| Answer» C. Nominal Account | |
| 218. |
Trade liabilities include ……….. |
| A. | Creditors |
| B. | Debentures |
| C. | Bank overdraft |
| D. | All of these |
| Answer» A. Creditors | |
| 219. |
. ……..is called a factory of credit. |
| A. | Company |
| B. | Firm |
| C. | Bank |
| D. | None of these |
| Answer» C. Bank | |
| 220. |
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 | |
| 221. |
CRR stands for ………… |
| A. | Current Reserve Ratio |
| B. | Capital Reserve Ratio |
| C. | Cash Reserve Ratio |
| D. | Capital Redemption Ratio |
| Answer» C. Cash Reserve Ratio | |
| 222. |
SLR stands for …………… |
| A. | Savings Level Ratio |
| B. | Statutory Liquidity Ratio |
| C. | Standard Liquidity Ratio |
| D. | None of these |
| Answer» B. Statutory Liquidity Ratio | |
| 223. |
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 | |
| 224. |
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 | |
| 225. |
. …….of profit is transferred to statutory reserves. |
| A. | 10% |
| B. | 20% |
| C. | 25% |
| D. | 30% |
| Answer» C. 25% | |
| 226. |
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 | |
| 227. |
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 | |
| 228. |
NPA stands for…………. |
| A. | Non‐ Performing Assets |
| B. | Normal Performing Assets |
| C. | National Performing Asset |
| D. | None of these |
| Answer» A. Non‐ Performing Assets | |
| 229. |
Schedule 1 is concerned with …………. |
| A. | Cash and balance with RBI |
| B. | Capital |
| C. | Reserves and Surplus |
| D. | Investments |
| Answer» B. Capital | |
| 230. |
. ………… is shown under Schedule 15. |
| A. | Interest earned |
| B. | Profit |
| C. | Interest Expended |
| D. | Appropriations |
| Answer» C. Interest Expended | |
| 231. |
Acceptance, endorsements and other obligations come under the head… |
| A. | Provisions and Contingencies |
| B. | Contingent liabilities |
| C. | Deposits |
| D. | Borrowings |
| Answer» B. Contingent liabilities | |
| 232. |
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 | |
| 233. |
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 | |
| 234. |
. ………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 | |
| 235. |
The agreement of insurance is called as ……….. |
| A. | Policy |
| B. | Premium |
| C. | Annuity |
| D. | None of these |
| Answer» A. Policy | |
| 236. |
The consideration in insurance for covering the risk is called …………. |
| A. | Claim |
| B. | Premium |
| C. | Annuity |
| D. | None of these |
| Answer» B. Premium | |
| 237. |
. ……………is the party who undertakes the risk in insurance. |
| A. | Insurer |
| B. | Assurer |
| C. | Underwriter |
| D. | All of these |
| Answer» D. All of these | |
| 238. |
The party whose risk is covered in insurance is known as ………. |
| A. | Insurer |
| B. | Insured |
| C. | Underwriter |
| D. | None of these |
| Answer» B. Insured | |
| 239. |
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 | |
| 240. |
General Insurance includes ……………. |
| A. | Fire Insurance |
| B. | Marine Insurance |
| C. | Burglary Insurance |
| D. | All of these |
| Answer» D. All of these | |
| 241. |
LIC was nationalized in ………….. |
| A. | 1935 |
| B. | 1950 |
| C. | 1956 |
| D. | 1964 |
| Answer» C. 1956 | |
| 242. |
Insurance business in India is regulated by …………. A. LIC B. IRDA C. RBI D. SEBI 193. 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» B. Endowment Policy | |
| 243. |
. ………..is the amount payable to the insured on the happening of event. |
| A. | Premium |
| B. | Annuity |
| C. | Claim |
| D. | Policy |
| Answer» C. Claim | |
| 244. |
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 | |
| 245. |
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 | |
| 246. |
. …………..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 | |
| 247. |
Revenue Account is also called …………. |
| A. | Shareholders’ Account |
| B. | Policyholders’ Account |
| C. | Creditors’ Account |
| D. | None of these |
| Answer» B. Policyholders’ Account | |
| 248. |
Valuation balance sheet is prepared by ……………business. |
| A. | Fire Insurance |
| B. | Marine Insurance |
| C. | Life Insurance |
| D. | All of these |
| Answer» C. Life Insurance | |
| 249. |
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 | |
| 250. |
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 | |
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