1. Debentures constitute ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ capital of the company
Correct : B. Borrowed
2. Debenture holders are ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of a company.
Correct : B. Creditors
3. Generally, debentures are
Correct : B. Secured
4. Redemption of debentures means ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of liability on debentures.
Correct : B. Discharge
5. Debentures issued with a fixed or a floating charge on the assets of the company are called ‐‐‐‐‐‐‐‐‐‐‐
debentures
Correct : B. Secured
6. Debentures repayable after a fixed period of a time are called ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ debentures.
Correct : B. Redeemable
7. When charge is created against specific assets of the company, it is called ‐‐‐‐‐‐‐‐‐‐‐‐‐ charge.
Correct : B. Fixed
8. Unsecured debentures are otherwise known as ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ debentures.
Correct : A. Simple
9. Debenture is a written ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of debt of a company
Correct : B. Acknowledgement
10. Premium on issue of debentures is a ‐‐‐‐‐‐‐‐‐‐‐.
Correct : B. Capital profit
11. Capital Redemption Reserve Account and Securities Premium Account can be only for issuing fully
paid Bonus Shares and not for making partly paid shares into ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
Correct : A. Fully paid
12. Bonus issue can be made out of securities premium collected in ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
Correct : A. Cash only
13. Bonus issue is permitted only if all partly paid shares are made‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
Correct : A. Fully paid shares
14. Bonus issues ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ even when the shares are partly paid.
Correct : A. Can be made
15. In order to know ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ value of shares, it is necessary to know the net value of the assets
of the company.
Correct : A. Intrinsic value
16. If the actual profits are more than the expected normal profits, the difference is termed as ‐‐‐‐‐‐‐
Correct : D. Super profit
17. Intrinsic value of share is calculated by dividing the ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of the company by the number of
shares
Correct : B. Net asset
18. Fair value of a share in the simple average of intrinsic value and ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ value of a share
Correct : D. Yield value.
19. In the calculation of ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐, past profits will have to be adjusted, in order to dertemine the
future expected profits.
Correct : A. Shares
20. Fair value of a share is the ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ average of intrinsic value and yield value.
Correct : B. Simple
21. ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of the following is not concerned with the valuation of goodwill.
Correct : A. Earning capacity method
22. In the balance sheet forfeited shares amount is to be added to ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.
Correct : A. Share capital
23. Dividend declared between two Annual General Meetings.
Correct : D. Interim dividend
24. When the proposed dividend is more than 20 %, an amount equal to ‐‐‐‐‐‐‐‐‐‐‐ of the current profits
must be transferred to reserve.
Correct : D. 10%
25. Share holders cannot increase the rate of ‐‐‐‐‐‐‐‐‐ recomened by the Boared of Directors.
Correct : C. Dividend
26. Advance payment of tax should be shown on the ‐‐‐‐‐‐‐‐‐‐‐‐ side of the balance sheet.
Correct : B. Asset side
27. No dividend is payable on calls in ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
Correct : D. Advance
28. Companies have a statutory obligation to prepare required by section 210 of the companies Act
Correct : D. Final accounts
29. Companies have a statutory obligation to prepare final accounts required by ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of the
companies Act 1956.
Correct : C. Section 210
30. Companies have a statutory obligation to prepare final Accounts required by section 210 of the ‐‐‐‐‐‐‐
‐‐‐‐‐1956.
Correct : D. Companies act.
31. Companies have a statutory obligation to prepare final accounts required by section 210 of the
companies Act ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
Correct : D. 1956
32. Final accounts of the companies is prepared under the ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
Correct : C. Companies Act 1956
33. Requirements given in part II of the schedule VI apply to ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
Correct : B. The Profit and Loss Account
34. Requirements given in part I of schedule VI apply to ‐‐‐‐‐‐‐‐‐‐‐‐‐‐
Correct : C. Balance sheet
35. Requirements given in part II of ‐‐‐‐‐‐‐‐‐‐‐‐‐apply to statement of profit or loss
Correct : D. Schedule VI
36. Requirements given in part I of ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ apply to Balance sheet
Correct : B. Schedule VI
37. Ordinarily ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ are not available for the distribution of dividend.
Correct : B. Capital profits
38. Ordinarily ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ are available for the distribution of dividend.
Correct : A. Revenue profits
39. Dividend paid or declared are subject to corporate dividend Tax @ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ as per recent
finance Act.
Correct : B. 17%
40. Dividend paid or declared are subject to corporate Dividend Tax @ 17% as per recent ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
Correct : A. Finance Act
41. Dividend paid are subject to ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ Tax @ 17% as per recent Finance Act
Correct : C. Corporate Dividend Tax
42. Assets in to Balance sheet of a limited company are arranged in order of :‐
Correct : B. Permanence
43. Calls in arrear is shown on the liability side of the balance sheet:‐
Correct : D. By deducting the amount from the called up capital
44. Fictitious assets are shown on the ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐side of the balance sheet.
Correct : D. Assets
45. Fictitious Assets shown on the Asset side of the ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
Correct : C. Balance sheet
46. Fictitious Assets are shown on the asset side of the balance sheet of a company under the heading ‐‐
‐‐‐‐‐‐‐‐‐
Correct : D. Miscellaneous Expenditure
47. Goodwill incase of a joint stock on the assets side under the heading of ‐‐‐‐‐‐‐‐‐‐
Correct : A. Fixed assets
48. ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ in case of a joint stock company is shown on the Asset side under heading of intangible
assets
Correct : A. Goodwill
49. Goodwill in case of a joint stock company is shown on the ‐‐‐‐‐‐‐‐‐‐‐‐‐‐ side under the heading of
intangible assets
Correct : B. Asset side
50. Share forfeited Account is shown on the liabilities side of the balance sheet‐‐‐‐‐‐‐‐‐‐‐‐
Correct : A. By adding to the paid up capital
51. Unclaimed dividend is shown on the liability side of the balance sheet under the heading:‐
Correct : B. Current liabilities
52. Unclaimed dividend is shown on the ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of the balance sheet
Correct : C. Liability side
53. Uncliamed dividend is shown on the liability side of the ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ under the heading current
liabilities.
Correct : D. Balance sheet
54. The difference between Gross dividend receivable and dividend received is debited to ‐‐‐‐‐‐‐‐‐‐‐‐‐‐
Correct : A. Tax deducted at source
55. The difference between ‐‐‐‐‐‐‐‐‐‐‐‐‐‐ receivable and dividend received is debited to tax deducted at
source.
Correct : A. Gross dividend
56. Dividend declared between two ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is known as interim dividend
Correct : A. Annual general meeting
57. ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ declared between two annual general meeting is known as interim dividend
Correct : B. Dividend
58. Dividend declared between two annual general meeting is known as ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
Correct : C. Interim dividend
59. Calls in advance is shown on the ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of the balance sheet
Correct : C. Liability side
60. Preliminiary expenses incurred on the ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of a company.
Correct : A. Formation
61. A Banking company should transfer ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of its profits to a statutory reserve.
Correct : B. 25%
62. A banking company should transfer 25% of its profits to a ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
Correct : C. Statutory Reserve
63. A ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ company should transfer 25% of its profits to a statutory reserve
Correct : D. Banking company
64. Rebate on bills discounted is a ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of the Banking company.
Correct : A. Liability
65. Rebate on bills discounted is shown on the ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ side of the balance sheet
Correct : B. Liability
66. Rebate on bills discounted is shown on the liability side of the ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
Correct : C. Balance sheet
67. Bills discounted is an ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of the banking company
Correct : A. Asset
68. Banks are required to transfer ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of their profits to a statutory Reserve.
Correct : A. 25%
69. Rebate on bills discounted is ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
Correct : B. Income received in advance
70. Banking business in India is largely governed by the Banking Regulation Act‐‐‐‐‐‐‐‐‐
Correct : C. 1949
71. ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ in India is largely governed by the Banking Regulation act 1949.
Correct : B. Banking business
72. Banking business in India is largely governed by the ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
Correct : D. Banking Regulation Act
73. A ‐‐‐‐‐‐‐‐‐‐‐‐ loan is payable on demand
Correct : B. Demand Loan
74. A demand Loan is payable on ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
Correct : A. Demand
75. Revenue reserve means any reserve other than ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ reserve.
Correct : D. Other reserve.
76. Money at call and short notice is an ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of the Banking company.
Correct : B. Asset
77. Banks show provision for income tax under the head
Correct : B. Other liabilities
78. Contingency funds have been grouped in the balance sheet under the head ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
Correct : D. Current liabilities and provisions.
79. No profits and Loss Appropriation Account is prepared in case of a ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ company.
Correct : C. Banking company
80. Banks are required to prepare final accounts for each ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ year
Correct : A. Financial year
81. A company required to prepare in profit & loss Account according to ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ in to III
schedule to the banking regulation Act.
Correct : B. Form B
82. A Banking company required to prepare its balance sheet according to ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ in the
schedule III to the banking
Correct : A. Form A
83. A Banking company required to prepare final accounts according to ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ schedule to the
banking Regulation Act.
Correct : A. III
84. A ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ company required to prepare its balance sheet according to form A in the III
schedule to the banking Regulation Act.
Correct : C. Banking company
85. A ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ company required to prepare its project and loss account according to Form B in
the Schedule III to the Banking Regulation Act.