McqMate
| 1. |
In order to find out additional capital of any partner as per surplus capital method of a particular partner whose proportional capital compared to other partner's capital is |
| A. | More |
| B. | Zero |
| C. | Less |
| D. | None of the above |
| Answer» C. Less | |
| 2. |
Before distributing cash amongst partners whatever profit or loss and reserves as per the balance sheet |
| A. | Will not be distributed amongst partners |
| B. | Will be distributed amongst partners as per their P/L sharing ratio |
| C. | Will be distributed amongst partners in context to each partner's capital |
| D. | Will be distributed equally amongst partners |
| Answer» B. Will be distributed amongst partners as per their P/L sharing ratio | |
| 3. |
If there is Debit balance of any one partner's capital account the same will be distributed amongst the remaining partners |
| A. | As per the ratio of capital |
| B. | As per their Profit and Loss sharing ratio |
| C. | Nil (will not be distributed) |
| D. | None of the above |
| Answer» B. As per their Profit and Loss sharing ratio | |
| 4. |
In piecemeal Distribution according to Surplus capital method, final deficit of each partner |
| A. | Will not be in ratio of capital |
| B. | Will be in ratio of profit and loss |
| C. | Will not be in ratio of profit and loss |
| D. | None of the above |
| Answer» B. Will be in ratio of profit and loss | |
| 5. |
Salesmen's salary is divided between two periods in |
| A. | Time Ratio |
| B. | Turnover ratio |
| C. | Purchase ratio |
| D. | None of the above |
| Answer» B. Turnover ratio | |
| 6. |
Preliminary expenses are apportioned between two periods in |
| A. | Time Ratio |
| B. | Turnover ratio |
| C. | Prior to Inc. Period |
| D. | Post Inc. Period |
| Answer» D. Post Inc. Period | |
| 7. |
Profit of post-incorporation period is called |
| A. | Revenue Profit |
| B. | Capital Profit |
| C. | Gross Profit |
| D. | None of the above |
| Answer» A. Revenue Profit | |
| 8. |
The profit earned from the date of purchase till incorporation is considered as |
| A. | Revenue Profit |
| B. | Capital Profit |
| C. | Gross Profit |
| D. | None of the above |
| Answer» B. Capital Profit | |
| 9. |
Director's salary is divided between prior period and post incorporation period in |
| A. | Turnover ratio |
| B. | Time Ratio |
| C. | Revenue Ratio |
| D. | None of the above |
| Answer» D. None of the above | |
| 10. |
Depreciation is calculated on the asset purchased by company in |
| A. | Time Ratio |
| B. | Turnover ratio |
| C. | Post Incorporation Period |
| D. | Pre Incorporation Period |
| Answer» C. Post Incorporation Period | |
| 11. |
If there is a loss prior to incorporation, it will be debited to |
| A. | Profit and Loss Account |
| B. | Goodwill Account |
| C. | Capital Reserve Account |
| D. | None of the above |
| Answer» B. Goodwill Account | |
| 12. |
The Companies Act provides that minimum amount of of the face value of shares must be paid along with the application |
| A. | 0.05 |
| B. | 0.1 |
| C. | 0.07 |
| D. | 0.02 |
| Answer» A. 0.05 | |
| 13. |
According to Table 'A', a company can charge annual interest on calls-in-arrears at |
| A. | 0.1 |
| B. | 0.05 |
| C. | 0.075 |
| D. | 0.12 |
| Answer» B. 0.05 | |
| 14. |
According to Table 'A', annual interest on calls-in-advance should be |
| A. | Not more than 2.5% |
| B. | Not more than 5% |
| C. | Not more than 6% |
| D. | Not more than 10% |
| Answer» C. Not more than 6% | |
| 15. |
When a company pays remuneration to its promoters by issuing shares to them, then |
| A. | Goodwill Account is debited |
| B. | Share Capital Account is debited |
| C. | Promoter Account is debited |
| D. | None of the above |
| Answer» A. Goodwill Account is debited | |
| 16. |
When shares are Forfeited, then the amount called up on Forfeited shares is debited to |
| A. | Share Capital Account |
| B. | Share Call Account |
| C. | Share Forfeiture Account |
| D. | None of the above |
| Answer» A. Share Capital Account | |
| 17. |
When Forfeited shares are reissued, then the discount allowed should be the amount received from old share holders |
| A. | Not Less than |
| B. | Equal to |
| C. | Not more than |
| D. | None of the above |
| Answer» C. Not more than | |
| 18. |
When all the Forfeited shares are not reissued, then the proportionate amount in must be kept in that account |
| A. | Share Capital Account |
| B. | Forfeiture Share Account |
| C. | Capital Reserve Account |
| D. | None of the above |
| Answer» B. Forfeiture Share Account | |
| 19. |
When the amount of premium on forfeited shares has not been received, then with the proportionate amount of premium |
| A. | Security Premium Account is debited |
| B. | Security Premium Account is credited |
| C. | Share Capital Account is debited |
| D. | None of the above |
| Answer» A. Security Premium Account is debited | |
| 20. |
When shares have been issued at discount, then the proportionate amount of discount on forfeited shares should be |
| A. | Debited to Shares Discount Account |
| B. | Credited to Shares Discount Account |
| C. | Credited to Forfeited shares Account |
| D. | None of the above |
| Answer» B. Credited to Shares Discount Account | |
| 21. |
The maximum rate of interest paid by a company on Calls- in-advance as per Table 'A' is |
| A. | 0.05 |
| B. | 0.06 |
| C. | 0.1 |
| D. | 0.025 |
| Answer» B. 0.06 | |
| 22. |
The maximum rate of interest received by a company on Calls-in-arrears as per Table 'A' is |
| A. | 0.06 |
| B. | 0.18 |
| C. | 0.12 |
| D. | 0.05 |
| Answer» D. 0.05 | |
| 23. |
A company can issue bonus share out of the following |
| A. | credit balance of profie and loss acoount |
| B. | securities premium account |
| C. | capital reserve account |
| D. | all of these |
| Answer» D. all of these | |
| 24. |
When shares are to be redeemed out of profits, a sum equal to nominal amount of shares redeemed is to be transferred to |
| A. | Capital Reserve |
| B. | Capital Redeemption Reserve |
| C. | General Reserve |
| D. | Trading Account |
| Answer» B. Capital Redeemption Reserve | |
| 25. |
when company issues bonus share then its share price immediately |
| A. | increase |
| B. | decrease |
| C. | as not effect |
| D. | none of tese |
| Answer» B. decrease | |
| 26. |
The premium paid on redeemption of Preference Shares is provided from |
| A. | Security Premium Account |
| B. | General reserve Account |
| C. | Capital Reserve Account |
| D. | Profit and Loss Account |
| Answer» A. Security Premium Account | |
| 27. |
Minimum time period for two bonus issue must be |
| A. | 12 months |
| B. | 24 months |
| C. | 36 months |
| D. | none of tese |
| Answer» D. none of tese | |
| 28. |
Redeemable Preference Shares can not redeemed at |
| A. | Cost Price |
| B. | Premium |
| C. | Discount |
| D. | None of the Above |
| Answer» C. Discount | |
| 29. |
Under Section 80, Preference Shares are redeemed out of amount received from |
| A. | Issue of New Equity Shares |
| B. | Credit Balance in P & L Account |
| C. | Issue of New Preference Shares |
| D. | All of the Above |
| Answer» D. All of the Above | |
| 30. |
company can issue bonus share out of source of |
| A. | capital |
| B. | Reserve capital |
| C. | Capital Reserve |
| D. | none of these |
| Answer» C. Capital Reserve | |
| 31. |
Bonus to existing shareholders is paid to them |
| A. | in cash |
| B. | in the form of debenture |
| C. | in the form of the share |
| D. | none of tese |
| Answer» C. in the form of the share | |
| 32. |
Prepaid Income Tax is shown in |
| A. | Asset side |
| B. | liabiolities side |
| C. | Debit side of P & L Account |
| D. | credit side of P & L Account |
| Answer» A. Asset side | |
| 33. |
Forfeited Call on shares is shown in |
| A. | Capital Account |
| B. | Debit side of P & L Account |
| C. | Credit side of P & L Account |
| D. | Capital Reserve |
| Answer» A. Capital Account | |
| 34. |
For preparing Final Accounts, Preliminary expense not written off is shown in |
| A. | Balance Sheet |
| B. | Trading Account |
| C. | P & L Account |
| D. | General Reserve |
| Answer» A. Balance Sheet | |
| 35. |
Unclaimed dividend is shown under the head |
| A. | Current Liability |
| B. | Current Asset |
| C. | Trading Account |
| D. | Profit and Loss Account |
| Answer» A. Current Liability | |
| 36. |
Debenture discount is shown under the head |
| A. | Current Liability |
| B. | Current Asset |
| C. | Trading Account |
| D. | Profit and Loss Account |
| Answer» D. Profit and Loss Account | |
| 37. |
Bank Over draft is shown under the head |
| A. | Secured Loan |
| B. | Unsecured loan |
| C. | Current Liability and Provision |
| D. | Capital Account |
| Answer» C. Current Liability and Provision | |
| 38. |
Interest accrued and not due is shown under the head |
| A. | Secured Loan |
| B. | Unsecured loan |
| C. | Current Liability and Provision |
| D. | None of the Above |
| Answer» C. Current Liability and Provision | |
| 39. |
Interest accrued and not due on unsecured loan is shown under the head |
| A. | Secured Loan |
| B. | Unsecured loan |
| C. | Current Liability |
| D. | None of the Above |
| Answer» B. Unsecured loan | |
| 40. |
Preliminary Expenses are shown in |
| A. | Liability side |
| B. | Asset side |
| C. | Debit side of P & L Account |
| D. | Credit side of P & L Account |
| Answer» B. Asset side | |
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