McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Cost Accounting .
| 1. |
The term 'sub-agent' in the business of agency is defined as a person employed by, and acting under the control of the |
| A. | Principal |
| B. | Original agent |
| C. | Lawyer |
| D. | Third person |
| Answer» B. Original agent | |
| 2. |
The first endorsement of an instrument can be made by the |
| A. | Banker |
| B. | Payee |
| C. | Holder in due course |
| D. | Agent |
| Answer» B. Payee | |
| 3. |
Which of the following is not the mode of dissolution of a firm under voluntary dissolution? |
| A. | Dissolution by agreement |
| B. | Dissolution on the happenings of certain contingencies |
| C. | Dissolution on becoming a partner of unsound mind |
| D. | Compulsory dissolution |
| Answer» C. Dissolution on becoming a partner of unsound mind | |
| 4. |
White wash or color wash should be carried out at least once in every period of |
| A. | 14 months |
| B. | 24 months |
| C. | 48 months |
| D. | 60 months |
| Answer» A. 14 months | |
| 5. |
The term 'family' as defined in ESI Act, 1948 does not include |
| A. | a spouse |
| B. | a minor adopted child |
| C. | a dependent unmarried daughter |
| D. | an independent married sister |
| Answer» D. an independent married sister | |
| 6. |
Which one of the following amounts to safety measure? |
| A. | Artificial humidification |
| B. | Ventilation |
| C. | Fencing of machinery |
| D. | First aid appliances |
| Answer» C. Fencing of machinery | |
| 7. |
If a company does not have a common seal, the share certificate shall be signed by |
| A. | Two Directors |
| B. | One Director and Company Secretary |
| C. | Two Directors and Company Secretary |
| D. | Company Secretary |
| Answer» A. Two Directors | |
| 8. |
In case of e-voting, notice shall be sent as attachment in |
| A. | PDF file |
| B. | Word file |
| C. | Excel file |
| D. | Access file |
| Answer» A. PDF file | |
| 9. |
A Director may be elected by small shareholders upon a notice by |
| A. | not less than 1000 small shareholders. |
| B. | one tenth of the total number of shareholders. |
| C. | not less than 1000 small shareholders or one tenth of such shareholders, whichever is lower. |
| D. | one tenth of 1000 small shareholders. |
| Answer» C. not less than 1000 small shareholders or one tenth of such shareholders, whichever is lower. | |
| 10. |
Meta ethics deal with the nature of ___________ . |
| A. | external influences |
| B. | moral judgement |
| C. | material facts |
| D. | animal rights |
| Answer» B. moral judgement | |
| 11. |
The breach of contract may be- |
| A. | Actual |
| B. | Anticipatory |
| C. | None of the above |
| D. | Either of (a) and (b) |
| Answer» D. Either of (a) and (b) | |
| 12. |
Which one of the following is not the feature of “agreement to sale”? |
| A. | It is an executor contract |
| B. | Sales takes place for existing and specific goods |
| C. | The seller can sue for damages only in case of breach by the buyer |
| D. | It gives a right to the buyer against the seller to sue for damages |
| Answer» B. Sales takes place for existing and specific goods | |
| 13. |
Which one of the following is not the element of draft? |
| A. | It cannot be drawn on private individual |
| B. | It cannot be countermanded easily |
| C. | It is open to the person to stop payment |
| D. | The bank undertakes the liability which it is bound to discharge in whose favor the |
| Answer» C. It is open to the person to stop payment | |
| 14. |
Who may negotiate? |
| A. | Drawer |
| B. | Payee |
| C. | All of the joint makers |
| D. | Any of (a) to (c) |
| Answer» D. Any of (a) to (c) | |
| 15. |
The Information Memorandum shall be deemed to be a ______________. |
| A. | Prospectus |
| B. | Articles |
| C. | Memorandum |
| D. | None of the above. |
| Answer» A. Prospectus | |
| 16. |
The Regional Director shall communicate the confirmation of shifting of registered office within __________ days of receipt of the application. |
| A. | 15 |
| B. | 30 |
| C. | 45 |
| D. | 90 |
| Answer» B. 30 | |
| 17. |
The private placement shall be made, not more than ___________ persons in aggregate in a financial year. |
| A. | 50 |
| B. | 100 |
| C. | 200 |
| D. | 400 |
| Answer» C. 200 | |
| 18. |
If the shareholders not less than _____ of the issued shares of class did not consent to the variation or vote in favor of the special resolution for the variation, such shareholders may apply to the Tribunal to have the variation cancelled. |
| A. | 10% |
| B. | 15% |
| C. | 25% |
| D. | None of the above |
| Answer» A. 10% | |
| 19. |
The company shall not issue sweat equity shares for more than _______________ of the existing paid up share capital in a year. |
| A. | 10% |
| B. | 15% |
| C. | 25% |
| D. | None of the above |
| Answer» B. 15% | |
| 20. |
Which one of the following is not the discharge by operation of law? |
| A. | By merger |
| B. | By insolvency |
| C. | By breach of contract |
| D. | By the unauthorized alteration of items of a written document. |
| Answer» C. By breach of contract | |
| 21. |
Which one of the following is not the feature of the Contract of Guarantee? |
| A. | There are two parties in this contract. |
| B. | The liability of surety is secondary. |
| C. | There is an existing debt for which the surety gives guarantee to the creditor on behalf of the principal debtor. |
| D. | The surety gives contract at the request of the principal debtor. |
| Answer» C. There is an existing debt for which the surety gives guarantee to the creditor on behalf of the principal debtor. | |
| 22. |
Section 2(7) of the Sale of Goods Act, 1930 the term 'Goods' does not include __________. |
| A. | Stock and share |
| B. | Growing Crops |
| C. | Grass |
| D. | Neither (A) nor (B) nor (C) |
| Answer» D. Neither (A) nor (B) nor (C) | |
| 23. |
No female child shall be allowed to work in any factory except between ________________. |
| A. | 8 AM and 7 PM |
| B. | 6 PM and 6 AM |
| C. | 6 AM and 7 PM |
| D. | 10 PM and 5 AM |
| Answer» A. 8 AM and 7 PM | |
| 24. |
The Bonus shares may be issued out of the _____________________ |
| A. | Free Reserves |
| B. | Securities Premium Account |
| C. | Capital Redemption Reserve Account |
| D. | Any of the above |
| Answer» D. Any of the above | |
| 25. |
An instrument of the proxy shall be deposited with the registered office of the company before ____________ hours of the conduct of the meeting. |
| A. | 7 hours |
| B. | 21 hours |
| C. | 48 hours |
| D. | 60 hours |
| Answer» C. 48 hours | |
| 26. |
Theminimum number of designated partners in an LLP shall ____________________ |
| A. | 1 |
| B. | 2 |
| C. | 7 |
| D. | 15 |
| Answer» B. 2 | |
| 27. |
At every AGM, not less than ________ of the total number of directors shall retire by rotation. |
| A. | One third |
| B. | Two third |
| C. | Three fourths |
| D. | Half |
| Answer» A. One third | |
| 28. |
The minimum number of directors for a public company is _______________ |
| A. | 1 |
| B. | 2 |
| C. | 3 |
| D. | 7 |
| Answer» C. 3 | |
| 29. |
This is not one of the 7 principles of public life. |
| A. | Integrity |
| B. | Honesty |
| C. | Content |
| D. | Accountability |
| Answer» C. Content | |
| 30. |
Which of the following is an invitation for offer? |
| A. | A tender to supply goods at a certain time |
| B. | A request for a loan |
| C. | Bids in an auction sale |
| D. | A catalogue of goods for sale |
| Answer» D. A catalogue of goods for sale | |
| 31. |
Where seller delivers to the buyer a quantity of goods less than the contracted to sell, the buyer |
| A. | may reject them |
| B. | should not reject them as more quantity might be supplied. |
| C. | may resell them |
| D. | give less price for them. |
| Answer» A. may reject them | |
| 32. |
A person who has ultimate control over the affairs of the factory under Factories Act, 1948 is called as: |
| A. | Occupier |
| B. | Manager |
| C. | Chairman |
| D. | Managing Director |
| Answer» A. Occupier | |
| 33. |
A bearer instrument is negotiated by |
| A. | delivery only |
| B. | delivery and endorsement |
| C. | endorsement |
| D. | stamping and attestation |
| Answer» A. delivery only | |
| 34. |
X, Y and Z are partners in a firm. X, without the authority of Y and Z buys certain shares in his name out of partnership money. These shares will constitute |
| A. | Partnership liability |
| B. | Partnership Property |
| C. | Partnership networth |
| D. | Partnership Capital |
| Answer» B. Partnership Property | |
| 35. |
Business ethics calls for avoidance of |
| A. | Competition |
| B. | Publicity |
| C. | Monopoly |
| D. | Self-interest |
| Answer» C. Monopoly | |
| 36. |
Business ethics has a ____ application. |
| A. | Universal |
| B. | Natural |
| C. | Practical |
| D. | Physical |
| Answer» A. Universal | |
| 37. |
A contract is a combination of |
| A. | agreement and free consent |
| B. | agreement and consideration |
| C. | agreement and enforceability |
| D. | agreement and competence of parties |
| Answer» C. agreement and enforceability | |
| 38. |
A proper foundation of ethics requires a standard of _______ to which all goals and actions can be compared to. |
| A. | value |
| B. | living |
| C. | life |
| D. | speech |
| Answer» A. value | |
| 39. |
The provisions regarding maximum number of members in a partnership are given in |
| A. | The Partnership Act |
| B. | The Companies Act |
| C. | The Societies Registration Act |
| D. | The Co-operative Societies Act |
| Answer» B. The Companies Act | |
| 40. |
X and Y agree to divide the profits of a business in equal shares but the loss if any is to be borne by X only. The partnership agreement is |
| A. | void |
| B. | voidable |
| C. | lawful |
| D. | illegal |
| Answer» C. lawful | |
| 41. |
First aid boxes or cupboard equipped with prescribed contents and not less than one in number must be provided and maintained in every factory so as to be accessible during all working hours for every |
| A. | 200 workers for any time |
| B. | 150 workers for any time |
| C. | 500 workers for any time |
| D. | 30 workers for any time |
| Answer» B. 150 workers for any time | |
| 42. |
XYZ Ltd., to which the Payment of Wages Act, 1936 is applicable, fixes the wages period of 36 days. You as a Cost and Management Accountant of the Company, how would youadvice the company. |
| A. | There is no problem in the above act of the Company |
| B. | As per Section 4(2) of the Act, no wage period can exceed one month. So the company would be advised accordingly. |
| C. | The wages period can be more than 30 days subject to approval of appropriate Government |
| D. | The company should take permission of Inspector of the factory. |
| Answer» B. As per Section 4(2) of the Act, no wage period can exceed one month. So the company would be advised accordingly. | |
| 43. |
When the day on which a promissory note or bill of exchange is at maturity is a public holiday, the instrument shall be deemed to be due on the |
| A. | Preceding day |
| B. | Next preceding business day |
| C. | Same day of next week |
| D. | 3rd day following the day holiday |
| Answer» B. Next preceding business day | |
| 44. |
In case of an employee who has not completed 15 years of age at the beginning of the Accounting year, the minimum bonus will be |
| A. | `100 or 8.33% of salary or wages whichever is higher. |
| B. | ` 60 or 8.33% of salary or wages whichever is higher. |
| C. | ` 60 or 8.33% of salary or wages whichever is lower. |
| D. | 8.33% of salary or wages. |
| Answer» B. ` 60 or 8.33% of salary or wages whichever is higher. | |
| 45. |
Every LLP firm shall have at least _____________ designated partners who are individuals. |
| A. | two |
| B. | three |
| C. | four |
| D. | Five |
| Answer» A. two | |
| 46. |
K owns a residential flat in Chennai. He is entitled to quiet possession and enjoyment of his property. This is called – |
| A. | Rights in Personam |
| B. | Rights in Rem |
| C. | Constitutional Right |
| D. | There is no right at all |
| Answer» B. Rights in Rem | |
| 47. |
X sells the goodwill of his retail store to Y for `5 lacs and promises not to carry on the same business for ever and anywhere in India. This agreement is: |
| A. | Valid |
| B. | Void |
| C. | Voidable |
| D. | Illegal |
| Answer» B. Void | |
| 48. |
In a Contract of Guarantee there is/are: |
| A. | One contract |
| B. | Two contracts |
| C. | Three contracts |
| D. | Four contracts |
| Answer» C. Three contracts | |
| 49. |
Right of Stoppage in transit can be exercised by the Unpaid Seller, where the Buyer: |
| A. | is solvent |
| B. | becomes insolvent |
| C. | acts fraudulently |
| D. | acts smartly |
| Answer» B. becomes insolvent | |
| 50. |
"Nemo dat quad non habet", means: |
| A. | no one is greater than god |
| B. | none can give who does not himself possess |
| C. | everyone can give everything he has |
| D. | everyone is bound by is habit |
| Answer» B. none can give who does not himself possess | |
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