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101. |
Examination of accounting records undertaken for a special purpose is called |
A. | Auditing |
B. | Internal check |
C. | Investigation |
D. | Internal control |
Answer» C. Investigation |
102. |
The prime importance of investigation on behalf of an individual or firm intending to purchase an existing business is to |
A. | Ascertain value of asset |
B. | Ascertain the earning capacity of the concern |
C. | Estimation of value of good will |
D. | Extend of liabilities |
Answer» B. Ascertain the earning capacity of the concern |
103. |
Inflation of closing stock results is :- |
A. | Inflation of loss |
B. | Deflation of loss |
C. | Inflation of profit |
D. | Deflation of profit |
Answer» C. Inflation of profit |
104. |
Inflation of profit is possible due to : |
A. | Overvaluation of closing stock |
B. | Overstating purchase |
C. | Overstating opening stock |
D. | Overstating expenses |
Answer» A. Overvaluation of closing stock |
105. |
Charging excessive provision for depreciation results in |
A. | Less profit |
B. | More profit |
C. | No change in profit |
D. | No change in loss |
Answer» A. Less profit |
106. |
The main purpose of management audit is to |
A. | Review the management operations |
B. | Check arithmetical accuracy |
C. | Prevent travel |
D. | Prevent error |
Answer» A. Review the management operations |
107. |
Management audit is |
A. | Compulsory |
B. | Not compulsory |
C. | Compulsory under Income Tax Act |
D. | Compulsory under Indian Contract Act. |
Answer» B. Not compulsory |
108. |
Special resolution means ------------------- |
A. | 1/3 majority |
B. | 2/3 majority |
C. | ½ majority |
D. | none |
Answer» B. 2/3 majority |
109. |
Ordinary resolution means ----------------------- |
A. | 1/3 majority |
B. | 2/3 majority |
C. | More than 1/2 |
D. | none |
Answer» C. More than 1/2 |
110. |
The chartered Accountants Act is in ----------------- |
A. | 1956 |
B. | 1959 |
C. | 1949 |
D. | none |
Answer» B. 1959 |
111. |
Section 633 of the companies Act deals with |
A. | Liability of auditor |
B. | Relief to the auditor |
C. | Punishment to the auditor |
D. | none |
Answer» B. Relief to the auditor |
112. |
Auditor is an --------------- of a shareholder |
A. | Owner |
B. | Agent |
C. | Employer |
D. | none |
Answer» B. Agent |
113. |
Cost audit means audit of --------------- records |
A. | Financial |
B. | Cost |
C. | Tax |
D. | none |
Answer» B. Cost |
114. |
Financial auditor submits reports to the ---------------- |
A. | Shareholder |
B. | Board of director |
C. | Employees |
D. | none |
Answer» A. Shareholder |
115. |
Cost auditor submits reports to the --------------- |
A. | Share holder |
B. | Board of directors |
C. | Employees |
D. | none |
Answer» B. Board of directors |
116. |
--------------- audit is forward looking - |
A. | Financial |
B. | Cost |
C. | Tax |
D. | none |
Answer» B. Cost |
117. |
Cost auditor of a company is ----------- |
A. | Chartered Accountant |
B. | Cost Accountant |
C. | Tax Accountant |
D. | none |
Answer» B. Cost Accountant |
118. |
Auditor finds that there is change in the method of valuation of stock whether he should |
A. | Allow it |
B. | Disallow it |
C. | Allow it with a note to this effect |
D. | none |
Answer» C. Allow it with a note to this effect |
119. |
Audit under any statute in a country is called ------------------ |
A. | Final audit |
B. | Internal audit |
C. | Statutory audit |
D. | none |
Answer» C. Statutory audit |
120. |
Books of Accounts are prepared and audited as per the provisions of the --------------- |
A. | Income Tax Act,1961 |
B. | Companies Act 1956 |
C. | Chartered Accountants Act 1949 |
D. | none |
Answer» B. Companies Act 1956 |
121. |
CAATTS is also known as ----------- |
A. | Cost And Accounts Treatments |
B. | Computer Assisted Audit Tools and Techniques |
C. | Classification and Accounting of Tax Tools |
D. | none |
Answer» B. Computer Assisted Audit Tools and Techniques |
122. |
Auditor has got no lien on ------------- |
A. | Audit Note Nook |
B. | Audit working papers |
C. | Books to Accounts of Client |
D. | none |
Answer» C. Books to Accounts of Client |
123. |
Statutory Report should be sent to registrar before ------------------- days of statutory meeting |
A. | 30 days |
B. | 14 days |
C. | 21 days |
D. | none |
Answer» C. 21 days |
124. |
The meeting held by the company with in a period of not less than one month and not more than 6 months is called ------------- |
A. | Statutory |
B. | Annual |
C. | General |
D. | none |
Answer» A. Statutory |
125. |
-------------------- audit is not a statuary requirement |
A. | Management |
B. | Financial |
C. | Tax Audit |
D. | none |
Answer» A. Management |
126. |
----------------- audit refers to the evaluation of company’s performance against planned goals in the areas of social responsibility. |
A. | Cost audit |
B. | Social audit |
C. | Management audit |
D. | none |
Answer» B. Social audit |
127. |
Bonus shares are issued to ---------------- |
A. | New members |
B. | Existing share holders |
C. | Employees |
D. | none |
Answer» B. Existing share holders |
128. |
-------- Section of the Companies Act deals with Appointment of Company auditor. |
A. | Sec-226 |
B. | Sec-224 |
C. | Sec-227 |
D. | none |
Answer» B. Sec-224 |
129. |
-------- Section of the Companies Act deals with qualification of Company auditor. |
A. | Sec-226 |
B. | Sec-224 |
C. | Sec-227 |
D. | none |
Answer» A. Sec-226 |
130. |
Amount of Share premium may be utilized for |
A. | Payment of dividend |
B. | Writing of preliminary expenses |
C. | Routine expense |
D. | none |
Answer» B. Writing of preliminary expenses |
131. |
Share Premium Account should be shown in Balance sheet under |
A. | Paid-up capital |
B. | Subscribed capital |
C. | Reserves and surpluses |
D. | none |
Answer» C. Reserves and surpluses |
132. |
Auditor should see that amount received for premium on issue of shares should be shown in |
A. | Subscribed capital |
B. | Capital Reserve Account |
C. | Share Premium Account |
D. | none |
Answer» C. Share Premium Account |
133. |
A company can issue redeemable preference shares if authorized by |
A. | Memorandum of Association |
B. | Articles of Association |
C. | Companies Act-1956 |
D. | none |
Answer» B. Articles of Association |
134. |
A company can issue bonus shares if authorized by |
A. | Memorandum of Association |
B. | Articles of Association |
C. | Companies Act-1956 |
D. | none |
Answer» B. Articles of Association |
135. |
Interest on calls paid in advance according to table A, should not exceed |
A. | 6% |
B. | 5% |
C. | 10% |
D. | none |
Answer» A. 6% |
136. |
For the forfeiture of shares, the auditor should check that it is permitted |
A. | Memorandum of Association |
B. | By articles of association |
C. | Under Companies Act 1956 |
D. | none |
Answer» B. By articles of association |
137. |
Profits on reissue of forfeited Shares should be transferred to |
A. | Share forfeited Account |
B. | Capital Reserve Account |
C. | Profit and Loss Account |
D. | none |
Answer» B. Capital Reserve Account |
138. |
Shares issued for consideration other than cash should be vouched with the help of |
A. | Director’s minute Book |
B. | Shareholder’s minute Book |
C. | Contact with the party concerned |
D. | none |
Answer» C. Contact with the party concerned |
139. |
While checking the allotment of shares, the auditor should see that it is made within |
A. | 100 days of issue of prospectus |
B. | 120 days of issue of prospectus |
C. | 150 days of issue of prospectus |
D. | none |
Answer» B. 120 days of issue of prospectus |
140. |
Which of the following percentage of nominal amount of shares should be received with application |
A. | 10 |
B. | 15 |
C. | 5 |
D. | none |
Answer» C. 5 |
141. |
Accounting standards are prepared by |
A. | SEBI |
B. | RBI |
C. | ICAI |
D. | ITA |
Answer» C. ICAI |
142. |
Which of the following is referred to confirm the allotment of shares to the vendor |
A. | Cash book |
B. | Pass book |
C. | Director’s minute |
D. | none |
Answer» C. Director’s minute |
143. |
Share premium Account is shown on the _______________ |
A. | Asset side of Balance sheet |
B. | Liability side of Balance sheet |
C. | Credit side of profit and loss Account |
D. | none |
Answer» B. Liability side of Balance sheet |
144. |
Issue of shares at discount should be sanctioned by the ________________ |
A. | Board of directors |
B. | Share holders |
C. | Company Law Board |
D. | none |
Answer» C. Company Law Board |
145. |
The maximum rate of discount on shares shall not exceed________________ |
A. | 20% |
B. | 15% |
C. | 10% |
D. | none |
Answer» C. 10% |
146. |
Discount on issue of shares not written of is shown separately in Balance sheet under the head_____________ |
A. | Miscellaneous expenditure |
B. | Preliminary expanses |
C. | Current assets |
D. | none |
Answer» A. Miscellaneous expenditure |
147. |
__________________section of Companies Act deals with share Capital |
A. | 69 |
B. | 60 |
C. | 50 |
D. | none |
Answer» A. 69 |
148. |
Which among the following is not a function of the author |
A. | Checking errors and frauds |
B. | Vouching with original documents |
C. | Preparing final Accounts |
D. | none |
Answer» C. Preparing final Accounts |
149. |
Audit conducted as per the provisions of law is _____________ |
A. | Statutory Audit |
B. | Continuous Audit |
C. | Social Audit |
D. | none |
Answer» A. Statutory Audit |
150. |
The scope of auditing does not cover. |
A. | Vouching |
B. | Checking arithmetical accuracy |
C. | Ledger posting |
D. | none |
Answer» C. Ledger posting |
151. |
Internal audit is conducted |
A. | Periodically |
B. | Throughout the year |
C. | Once in a year |
D. | none |
Answer» B. Throughout the year |
152. |
The amount of application money received shall be deposited in a scheduled bank until________ |
A. | Annual general meeting |
B. | General meeting |
C. | Certificate to commencement obtained |
D. | none |
Answer» C. Certificate to commencement obtained |
153. |
Amount received as premium can be used to ___________ |
A. | Purchase Assets |
B. | Pay of liabilities |
C. | Issue bonus shares |
D. | none |
Answer» C. Issue bonus shares |
154. |
The auditors are liable under |
A. | Companies Act Only |
B. | Income Tax Act Only |
C. | All above |
D. | none |
Answer» C. All above |
155. |
The maximum number of audit assignment an auditor can accept is limited to -------------- companies |
A. | 10 |
B. | 15 |
C. | 20 |
D. | none |
Answer» C. 20 |
156. |
Auditors can be appointed by -------------- when the shareholders fail to appoint auditors at the general meeting |
A. | Board of directors |
B. | Central government |
C. | Company Low board |
D. | none |
Answer» B. Central government |
157. |
The examinations of financial transactions with supporting evidences is called |
A. | Verification |
B. | Vouching |
C. | Auditing |
D. | none |
Answer» B. Vouching |
158. |
Which among the following is an example of intangible asset? |
A. | Goodwill |
B. | Patents |
C. | All of these |
D. | none |
Answer» C. All of these |
159. |
Which of the following is not an item current asset? |
A. | Stock |
B. | Sundry debtors |
C. | Furniture |
D. | none |
Answer» C. Furniture |
160. |
The term inventories stands for |
A. | Raw materials |
B. | Work in progress |
C. | All of these |
D. | none |
Answer» C. All of these |
161. |
Sales day book is used for recording |
A. | Credit sales |
B. | Cash sales |
C. | All sales |
D. | none |
Answer» A. Credit sales |
162. |
--------------- audit is more suitable for small business houses |
A. | Continuous |
B. | Annual |
C. | Partial |
D. | none |
Answer» B. Annual |
163. |
Vouching is an examination of ----------- to ascertain the accuracy and authenticity of transactions in the book of accounts |
A. | Audit files |
B. | Audit note book |
C. | Documents |
D. | none |
Answer» C. Documents |
164. |
--------------- is a written plan containing details with regard to the conduct of a particular audit |
A. | Audit Note book |
B. | Audit programme |
C. | Audit files |
D. | none |
Answer» B. Audit programme |
165. |
--------------- is the verification of books of accounts from Income tax point of view |
A. | Cost audit |
B. | Tax audit |
C. | Management audit |
D. | none |
Answer» B. Tax audit |
166. |
Investigation is conducted |
A. | Regularly |
B. | Quarterly |
C. | As and when required |
D. | none |
Answer» C. As and when required |
167. |
Investigation is required when |
A. | Fraud is suspected in business |
B. | On acquisition of running business |
C. | All of them |
D. | none |
Answer» C. All of them |
168. |
Which among the following is not a right of company auditors |
A. | Right to access the book accounts |
B. | Right to seek explanations |
C. | Right to lies on books of accounts |
D. | none |
Answer» C. Right to lies on books of accounts |
169. |
Test checking is done when there is an effective system of -------------- |
A. | Internal control |
B. | Internal audit |
C. | Internal check |
D. | none |
Answer» C. Internal check |
170. |
Test checking means |
A. | Checking of all transactions |
B. | Checking of half of the transactions |
C. | Checking of selected items |
D. | none |
Answer» C. Checking of selected items |
171. |
Audit working papers are -------------------------- |
A. | Important information about audit |
B. | Appointment letters regarding audit |
C. | Letter of notice |
D. | none |
Answer» A. Important information about audit |
172. |
Current audit file consists of |
A. | Matters of future importance |
B. | Matters relations to post years |
C. | Matters relating to the year of audit |
D. | none |
Answer» C. Matters relating to the year of audit |
173. |
------------------- begins where accounting ends |
A. | Bookkeeping |
B. | Auditing |
C. | Internal check |
D. | none |
Answer» B. Auditing |
174. |
---------------- audit is compulsory for joint stock companies |
A. | Statutory |
B. | Final |
C. | Continuous |
D. | none |
Answer» A. Statutory |
175. |
Treating revenue expenditure as capital expenditure is an example of error of ------------------- |
A. | Principle |
B. | Compensating |
C. | Clerical |
D. | none |
Answer» A. Principle |
176. |
Financial statements are prepared by |
A. | The accountant |
B. | The auditor |
C. | Managing director |
D. | none |
Answer» A. The accountant |
177. |
Preliminary expanses not written off are treated as |
A. | Fixed assets |
B. | Intangible assets |
C. | Fictitious assets |
D. | none |
Answer» C. Fictitious assets |
178. |
Verification of assets involves a critical examination of |
A. | Ownership |
B. | Existence |
C. | All of these |
D. | none |
Answer» C. All of these |
179. |
Finished goods are valued for a balance sheet purpose |
A. | At cost price |
B. | At market price |
C. | At lower of cost or market price |
D. | none |
Answer» C. At lower of cost or market price |
180. |
---------------- includes financial and non-financial control |
A. | Internal check |
B. | Internal control |
C. | Internal audit |
D. | none |
Answer» B. Internal control |
181. |
---------------- is concerned with the allocation of work among employees |
A. | Internal control |
B. | Internal check |
C. | Internal audit |
D. | none |
Answer» B. Internal check |
182. |
The duties of internal auditor is prescribed by |
A. | Companies act |
B. | Company law board |
C. | Management |
D. | none |
Answer» C. Management |
183. |
Internal audit is considered as a service to ------------------- |
A. | Share holders |
B. | Board of directories |
C. | Management |
D. | none |
Answer» C. Management |
184. |
Pre-arranging and coordinating the audit work is called ------------------ |
A. | Audit planning |
B. | Vouching |
C. | Verification |
D. | none |
Answer» A. Audit planning |
185. |
A fixed audit programme is also called a --------- programme |
A. | Tailor made |
B. | Man made |
C. | Auditor made |
D. | none |
Answer» A. Tailor made |
186. |
Share holders minute book should be vouched for |
A. | Payment to vendors |
B. | Payment to promoters |
C. | Issue of bonus shares |
D. | none |
Answer» C. Issue of bonus shares |
187. |
---------------- is deducted from called up capital to get paid up capital |
A. | Subscribed capital |
B. | Issued capital |
C. | Calls in arrears |
D. | none |
Answer» C. Calls in arrears |
188. |
Discount on issue of shares is shown under the --------------- lead |
A. | Current asset |
B. | Preliminary expanses |
C. | Miscellaneous expanses |
D. | none |
Answer» C. Miscellaneous expanses |
189. |
To forfeit shares --------------- days notice to the share holder’s given |
A. | 40 |
B. | 14 |
C. | 24 |
D. | none |
Answer» B. 14 |
190. |
-------------- of the companies Act 1956 prescribes the duty of preparing a report by an auditor |
A. | Sec-227(2) |
B. | Sec-273(1) |
C. | Sec-224(2) |
D. | none |
Answer» A. Sec-227(2) |
191. |
A --------------- report is one which contains the opinion of the auditor subject to certain conditions |
A. | Unqualified |
B. | Qualified |
C. | Clean |
D. | none |
Answer» B. Qualified |
192. |
--------------- is made out of reserves or share premium |
A. | Preference shares |
B. | Bonus shares |
C. | Debentures |
D. | none |
Answer» B. Bonus shares |
193. |
---------------- shares cannot be issued if the company makes any default in the payment of its obligation |
A. | Preference |
B. | Equity |
C. | Bonus |
D. | none |
Answer» C. Bonus |
194. |
Capitalization of reserves means ------------------------- |
A. | Creation of provision |
B. | Declaration of dividend |
C. | Issue of bonus shares |
D. | none |
Answer» C. Issue of bonus shares |
195. |
Provisions regarding bonus issue should be given in -------------------- document |
A. | Memorandum of association |
B. | Articles of association |
C. | Prospectus |
D. | none |
Answer» B. Articles of association |
196. |
Balance remaining in the forfeited Account after reissue is transferred to --------------- account |
A. | General reserve |
B. | Capital reserve |
C. | Premium account |
D. | none |
Answer» B. Capital reserve |
197. |
If reissue of shares are more than face value of shares, the excess amount is transferred to ---------- account. |
A. | General reserve |
B. | Capital reserve |
C. | Premium account |
D. | none |
Answer» C. Premium account |
198. |
Share call amount due is credited to ------------------ account |
A. | Share application account |
B. | Share allotment account |
C. | Share capital account |
D. | none |
Answer» C. Share capital account |
199. |
When excess applications money is refunded to applicants it is vouched with cash book and ------- |
A. | Letter of allotment |
B. | Letter of call |
C. | Letter of regreat |
D. | none |
Answer» C. Letter of regreat |
200. |
Partial auditing is usually done by |
A. | Sole trading concern |
B. | Joint stock company |
C. | Govt. department |
D. | none |
Answer» A. Sole trading concern |
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