3. Which of the following is not a preferential creditors:
Correct : D. Amount due to employee under amalgamation or reconstruction
4. Salaries due to clerk is preferential for a period not exceeding:
Correct : C. Four months
5. B” List of contributories are not liable:
Correct : D. All of the above
6. Which of the following is not a preferential creditors:
Correct : D. Amount due to employee under amalgamation or reconstruction
7. Preference shareholders are legally entitled to the repayment of capital in the event of
liquidation of the company.
Correct : B. False
8. The …………..has a legal right of forfeiting the shares of those who fail to pay the
amount due.
Correct : A. Liquidator
9. ………………….on shares have priority over payment of paid up share capital of
that class.
Correct : A. Calls in advance
10. All revenue, taxes due to government within ………..before the date of
commencement of winding up is preferential.
Correct : C. 30 months
11. Salaries due to director, manager, secretary etc. are preferential.
Correct : B. False
12. Amount due to workman is rank with ……………….in the event of liquidation of the
company.
Correct : B. Secured creditors
13. ………………… means any person employed in any skilled or unskilled, manual,
supervisory (wages less than 1600 p.m.), technical work.
Correct : A. Workman
14. A company being a creation of law cannot die a natural death. It comes to an end by
law through the process of liquidation
Correct : A. True
15. If a company makes a default in delivering the to the registrar or n holding the
statutory meeting, then company is compulsorily wound up by the court.
Correct : C. Statutory report
16. Creditors voluntary winding up applies to ………………. Companies
Correct : B. Insolvent
17. Spreadsheet software can be utilize to generate accounting reports.
Correct : A. True
18. A computer sometimes is also termed as 'electronic brain'
Correct : A. True
19. The idea of computers was first conceived by Charles P. Babbage in 1833.
Correct : A. True
20. Software, refers to the physical devices of a computer system
Correct : B. False
21. Consistency refers to the ability of the computers of perform a variety of
tasks, simple as well as complex.
Correct : B. False
22. Connectivity is acknowledge as a . . . . . . element of the computer system.
Correct : A. Sixth
23. Where large number of accounting data is involved spreadsheet software may not
work……………………………….
Correct : A. Effective
24. The Enterprise Resource Planning software are of…………………………..proposals.
Correct : A. Higher
25. Repeating the same results without any variations irrespective of the number of times
the program is run is known as……………………
Correct : D. Consistency
26. In a pre-packaged accounting software reports are generated from the software
could be the………………………….
Correct : A. Package
27. Computerized accounting requires transaction data to be entered
into………………………
Correct : A. Accounting Package.
28. The choice of customized accounting packages is made on the basis of the………….
Correct : A. Vendor
29. The ability with which the computers remain functional to serve the user is termed
as……………………………………………………
Correct : A. Reliability
30. Enterprise resource planning is an ……………………………..
Correct : B. Accounting software
31. AS400 is a ………………………………accounting software.
Correct : A. Financial
32. Internal reconstruction is a slow and tedious process since it required the approval of :
Correct : D. All of the Above.
33. If the preference shareholder agree to sacrifice the arrear off preference dividend, it is
credited to:
Correct : A. Capital Reduction A/C
34. After the implementation of the scheme of internal reconstruction , any surplus in
capital reduction A/C is transferred to :
Correct : D. Capital reserve A/C
35. ……………………reconstruction refers to the reduction of capital to cancel any paid up
capital.
Correct : B. Internal
36. Reduction of share capital is possible by the company, if it is authorized by its:
Correct : D. All of the Above.
37. Converting share of smaller denomination into larger denominations is called:
Correct : C. Consolidation
38. Converting share of larger denomination into smaller denominations is called:
Correct : A. Sub-division
39. After the implementation of scheme of internal reconstruction, any amount left in the
capital reduction A/C will be transfer to:
Correct : A. Capital Reserve A/C
40. The main purpose of internal reconstruction is to:
Correct : C. Both A&B above
41. A fair and equitable distribution of loss is the essence of a successful scheme of:
Correct : D. Internal reconstruction
42. At the time of …………………, inter company debts and acceptances are to be
cancelled out.
Correct : D. Consolidation.
43. Inter- company dividends are ……………………..to the cost of investment in the
subsidiary company for calculating goodwill or capital reserve.
Correct : B. Deducted
44. Holdings of minority will …………………by the number of bonus shares received by
them.
Correct : A. Increase
45. Out of the unrealized profits, a holding company’s share is reduced from the stock and
Correct : A. Profit & Loss A/C
46. Investments made by a holding company in a subsidiary company are always to be
shown in ……………….
Correct : B. Consolidated Balance Sheet.
47. If AB Ltd buys more than 50% of the shares in CD Ltd then which of the following
statements accurately summarizes the relationship between these two firms?
Correct : C. AB Ltd is the parent undertaking
48. On a consolidated balance sheet, if the shares of a company have been bought for
more than the balance sheet value then the difference would appear as:
Correct : A. Goodwill
49. Pre-acquisition profit in subsidiary company is considered as:
Correct : B. Capital Profit
50. Profit earned after acquisition of share is treated as:
Correct : A. Revenue Profit
51. Profit earned before acquisition of share is treated as:
Correct : B. Capital Profit
52. Preparation of consolidated statements as per AS 21 is :
Correct : C. Mandatory for listed companies.
53. Face value of debentures of subsidiary company, held by holding co.is deducted
from:
Correct : B. Cost of Control
54. Minority Interest includes:
Correct : D. All of the above.
55. Preparation of Holding Companies Accounts Deals with :
Correct : B. AS-21
56. The time interval between the date of acquisition if shares in subsidiary company
and date of balance sheet of holding company is known as :
Correct : B. Post -acquisition period.
57. Shares are to be valued on ___________.
Correct : D. All of the above
58. Quoted shares are those shares which are ___________.
Correct : A. listed on the stock exchange
59. Under net asset method, value of a share depends on ___________.
Correct : A. net assets available to equity shareholders
60. Net asset value is also called as ___________.
Correct : D. (a), (b) and (c)
61. While deciding net asset value, fictitious assets ___________.
Correct : B. should not be considered
62. Net asset value method is based on the assumption that the company is
___________.
Correct : B. going to be liquidated.
63. Yield value depends on ___________.
Correct : D. none of the above
64. F.M.P. for yield valuation is ___________.
Correct : B. profit that would be available to equity shareholders
65. Fair value of a share is equal to ___________.
Correct : C. Average of intrinsic and yield value
66. Value of a partly paid equity share is equal to ___________.
Correct : A. Value of fully paid share - calls unpaid per share
67. Investments are ………………. assets.
Correct : A. Non trading
68. ………………………….. value depends on Net assets.
Correct : C. Intrinsic value
69. Yield value depends on……………………….
Correct : A. Net profit
70. Fair value is the ……………… of intrinsic value and yield value.
Correct : A. Average
71. EPS depends on net profit available to………………. Shareholders.
Correct : A. Equity
72. F.M.P. stands for …………………
Correct : B. Future maintainable profits
73. P/E ratio is a relationship between……………….. and ……………
Correct : A. MP/ EPS
74. Intrinsic Value Method is also called as………………..
Correct : C. Asset Backing method
75. Yield value is based on the assumption that ……………….
Correct : B. Going concern
76. NRR stands for ……………………………….
Correct : A. Normal rate of return
77. Goodwill is paid for obtaining __________.
Correct : A. Future benefit
78. The company earns a net profit of 24,000 with a capital of1,20,000. The NRR is
10%. Under capitalisation of super profit, goodwill will be ___________.
Correct : A. 1,20,000
79. Gross assets are 1,01,000, fictitious assets 350 are included in the gross assets. External liabilities are 7,500. 6% preference share capital is 45,000. Equity capital is 4,500 equity shares of 10 each fully paid. Average expected profit is 8,500. Transfer to reserves is 10% preference dividend is payable. NRR is 9%. The Net Asset Value Per share is ___________.
Correct : B. 10.70
80. Fair value is not the average of intrinsic value and yield value.
Correct : B. False
81. In net Assets method all liabilities are consider.
Correct : B. False
82. How many IFRS are in force as of now?
Correct : A. 65
83. Total no of interpretations applicable till date?
Correct : C. 28
84. What is the transition date of IFRS in India?
Correct : B. april 1, 2011
85. As per IAS 1, Presentation of financial statement, ______ no of items would constitute
complete set of financial statements.
Correct : D. 6
86. GAAP stands for
Correct : A. generally accepted accounting principles
87. Whether financial reviews by management, environment reports and value added financial
statements are outside the scope of international financial reporting standards (IFRSs)?
Correct : A. yes
88. What is the term used to describe the time between the acquisition of assets for processing and
their realization in cash or cash equivalents?
Correct : C. operating cycle
89. Which sections of an annual report do IFRSs apply to?
Correct : B. financial statements
90. How many formats are permitted for income and expense items under Ind AS 1?
Correct : B. two
91. Where should extraordinary items appear in an entity’s Statement of Comprehensive Income?
Correct : D. nowhere
92. When is offsetting permitted under Ind AS 1?
Correct : C. when required or permitted under an ifrs
93. Which of the following is not a component of a Statement of Financial Position?
Correct : C. cost of goods sold
94. Which of the following is not a requirement in the financial statements under Ind AS 1?
Correct : B. chairman’s commentary on performance
95. Under Ind AS 1 how often should financial statements be prepared?
Correct : A. at least annually
96. Correcting the recognition measurement and disclosure of amounts in financial statements as
if a prior period error had never occurred. This is:
Correct : A. retrospective restatement
97. Under Ind AS 16 how often the useful life of an asset should be reviewed?
Correct : A. at least at each financial year end
98. Under Ind AS 16 if an asset is idle
Correct : D. depreciation continues
99. Which of these is an allowable cost of an asset under Ind AS 16?
Correct : B. professional fees
100. What is the net amount an entity expects to obtain for an asset at the end of its useful life?