1. ------ is a liability which may or may not arise in future depending on happening of
some uncertain future event.
Correct : A. contingent liability
2. Acceptances, endorsements and obligations on behalf of a customer will be shown as
----- in the balance sheet of a company.
Correct : D. contingent liability
3. NPA for a period not exceeding 12 months is called as ----- asset.
Correct : C. sub-standard
4. Advanced tax paid by a banking company is shown as ---- in the Balance Sheet.
Correct : C. Other assets
5. Provision for Income tax is shown in a bank’s Balance Sheet as ------
Correct : D. other liabilities and provisions
6. Rebate on bills discounted is shown in the Balance Sheet as ------
Correct : B. Other liabilities & provisions
7. Rebate on bills discounted is also called --------
Correct : A. Unexpired discount
8. While preparing P/L account , rebate on bills discounted to be provided shall be
deducted from discount received in --------
Correct : D. schedule 13
9. Which of the following are performing assets?
Correct : B. Standard asset
10. Interest on non-performing assets should be recognized on -------- basis.
Correct : A. actually received
11. Which of the following represents term deposit?
Correct : C. fixed deposit
12. The short term advances made by a bank to the stock brokers and bill brokers are
called ---------
Correct : A. Money at call
13. ------ is an annual payment made by a life insurance company in consideration form
a lump sum received.
Correct : B. annuity
14. Which of the following represents policy holders a/c?
Correct : B. revenue a/c
15. ------ is a device of reducing the risk undertaken by an insurance company.
Correct : A. re-insurance
16. Under ……policy the sum assured becomes payable on the attainment of a specific
age or on death whichever is earlier
Correct : B. endowment policy
17. …….is a reserve created to meet any loss due to natural calamities.
Correct : C. catastrophe reserve
18. Life insurance is a contract of……
Correct : B. guarantee
19. General insurance is a contract of ……
Correct : B. indemnity
20. In the case of marine insurance reserve for unexpired risk is …..
Correct : B. 100%
21. Valuation balance sheet is prepared by a life insurance company to find out
Correct : C. surplus or deficiency
22. Insurance Regulatory and Development Authorities Act came in to effect in
Correct : C. 1999
23. Bonus payable on maturity of the policy is termed as
Correct : C. reversionary bonus
24. Insurance Act came in to effect in….,
Correct : C. 1938
25. Legal expenses in respect of claims of an insurance company is shown in -----------
Correct : B. Revenue a/c
26. Bonus in reduction of premium appears in the revenue a/c as ----------
Correct : B. an expense
27. ……………… is an artificial person created by law
Correct : C. Company
28. The liability of shareholders of a company is ………………..
Correct : A. Limited
29. A company is managed by its…………….
Correct : C. Board of Directors
30. ………….company Is a company created by a special Act in Parliament
Correct : D. Statutory
31. A company registered with Registrar of Companies under Indian Companies Act is called
as………..
Correct : B. Registered
32. The company in which the liability of members is liable to pay the agreed amount at the
time of winding up is called as …………..
Correct : C. Company limited by guarantee
33. A company in which the transferability of share is restricted is called as …………..
Correct : B. Private Company
34. ……….is the first stage in the formation of a public company
Correct : A. Promotion
35. Authorised capital is called as……………
Correct : B. Nominal Capital
36. …………..is that portion of capital which is called up only on winding up of the company.
Correct : D. Reserve capital
37. In case of ……………..preference shares, the arrears of dividend are carried forward and paid
out of the profits of the subsequent years.
Correct : C. Cumulative
38. …………..shares are repayable after the expiry of the fixed period or at the option of the
company.
Correct : D. Redeemable
39. A bundle of fully paid shares is called……………..
Correct : A. Stock
40. IPO stands for ………………
Correct : C. Initial Public Offer
41. In …... the company offers the investors an opportunity to bid collectively.
Correct : C. Book building
42. As per the companies Act, the interest on calls in advance is …………..
Correct : B. 6%
43. The rate of interest on Calls in arrears as per Companies Act is …………
Correct : C. 5%
44. The shares of a company can be issued at …………..
Correct : D. All of these
45. Share application account is a ………..
Correct : D. Personal Account
46. The rate of discount on shares cannot exceed ……….
Correct : A. 10%
47. A newly established company cannot issue shares at ……
Correct : C. Discount
48. ………..of total issued amount of capital is called minimum subscription.
Correct : B. 90%
49. The rate of discount should not exceed ……………. Of nominal vale of shares.
Correct : A. 10%
50. The minimum application money to be paid by an applicant must not be less than …….as per
Companies Act.
Correct : B. 5%
51. The excess price received on the par value of shares should be credited to ………….
Correct : C. Security Premium A/c
52. Underwriting commission is classified as …………..
Correct : D. Deferred revenue expenditure
53. Compulsory cancellation of shares by the company\y due to non‐payment of allotment or
call money is called …………….
Correct : C. Forfeiture of shares
54. The profit on reissue of forfeited shares is transferred to ………
Correct : C. Capital reserve
55. Preference shareholders are…………
Correct : C. Owners of the company
56. The shares firstly offered to the existing shareholders are called as ………….
Correct : A. Right shares
57. The security premium account is shown in the balance sheet under the head……….
Correct : B. Reserves & Surplus
58. ………..should be deducted from the share capital to determine the paid up capital.
Correct : C. Calls in arrears
59. The share capital account is debited with …………while forfeiting shares
Correct : C. Called capital
60. On an equity share of Rs. 20, the company has called up Rs. 16 but Rs.14 has been received
by the company, the share capital account should be credited by ……
Correct : B. Rs. 16
61. Balance of forfeited share is …….
Correct : B. Capital Reserve
62. When shares are issued at a price higher than their face value, it is called issue at…………..
Correct : B. Premium
63. The shares of a company only can be forfeited after giving a ………days notice
Correct : B. 14
64. The forfeited shares can be reissued at …………
Correct : D. All of these
65. Discount on reissue of forfeited shares should not exceed ………….
Correct : A. Amount forfeited
66. Preference shares cannot be redeemed at ………..
Correct : C. Discount
67. Preference shares can be redeemed by………….
Correct : D. All of these
68. …………… preference shares can be redeemed
Correct : A. Fully paid
69. Profit available for dividend distribution is called ………….
Correct : B. Divisible profit
70. Which of the following is an example for capital profit?
Correct : D. All of these.
71. Which of the following is an example for divisible profit?
Correct : A. General Reserve
72. In case of redemption out f profit, an amount equal to face value of shares so redeemed
should be transferred to …………
Correct : B. Capital Redemption Reserve
73. Capital Redemption Reserve Account can be utilized for………
Correct : D. Issuing fully paid bonus shares
74. The allotment of shares in case of oversubscription is called…..
Correct : A. Pro‐rata allotment
75. Security premium account can be utilized for ………….
Correct : D. All of these
76. …………..is that portion of issued capital which is applied for by the public.
Correct : B. Subscribed capital
77. ……………is an instrument of acknowledgment of debt.
Correct : C. Debenture
78. Debenture represents ………. Of a company
Correct : A. Borrowed capital
79. Debenture holders will get ……..
Correct : B. Interest
80. Debenture holders are the ……….of a company
Correct : C. Creditors
81. A charge created not on specific assets but generally on all assets is known as………….
Correct : B. Floating charge
82. …………..debentures can be transferred only with the knowledge of the company.
Correct : C. Registered
83. ………..debentures are transferable by mere delivery
Correct : D. Bearer
84. …………debentures are secured by the assets of the company
Correct : B. Mortgage
85. Unsecured debentures are called as ……………….debentures
Correct : A. Naked
86. FCD stands for ……………
Correct : C. Fully Convertible Debentures
87. When debentures are issued as a consideration of purchase of assets …………. Is debited.
Correct : C. Assets Account
88. Discount or loss on issue of debenture is a ………….
Correct : C. Capital Loss
89. Discount or loss on issue of debenture is shown in the balance sheet under the head ……..
Correct : D. Miscellaneous expenditure
90. Debentures can be redeemed out of ……….
Correct : D. All of these
91. Interest on debenture is ……….
Correct : C. Charge on profit
92. Debentures are shown in the balance sheet under the head ………..
Correct : A. Secured loans
93. After realizing all the investments, the balance in the sinking fund account is transferred to
…………
Correct : D. Capital reserve
94. When own debentures are cancelled, any profit on cancellation is transferred to ……..
Correct : B. Capital Reserve
95. If the purchase price of debentures includes interest for the expired period, the quotation is
said to be …………..
Correct : B. Cum‐interest
96. If the purchase price of debentures excluding interest for the expired period, the quotation
is said to be …………..
Correct : A. Ex‐interest
97. As per ………..it is the statutory obligation of companies to prepare their final accounts.
Correct : A. Sec 210
98. The Balance sheet of Companies are prepare in the form ……….
Correct : B. Part I of Schedule VI
99. The Profit and Loss Account of companies is prepared in the form ………….
Correct : D. Part II of Schedule VI
100. The dividend declared between two annual general meeting is called ……….