Quiznetik

Corporate Accounting | Set 6

1. The net profit available for dividend distribution is called …………

Correct : C. Divisible Profit

2. Dividend in the form of shares is called ………..

Correct : B. Scrip Dividend

3. ………is the dividend declared in the annual general meeting of shareholders.

Correct : B. Final Dividend

4. The dividend recommended by the Board of Directors is called………

Correct : A. Proposed Dividend

5. Unclaimed dividend is shown in the balance sheet under the head ……..

Correct : B. Current Liabilities

6. ……..is a charge against profit of the company

Correct : A. Provision

7. CDT stands for….

Correct : B. Corporate Dividend Tax

8. An item which may or may not be the liability of the company due to happening of certain event is…………

Correct : C. Contingent Liabilit

9. Advance tax paid is shown in the balance sheet under the head……….

Correct : B. Loans and Advances

10. Preliminary expenses not written off are shown in the balance sheet under the head…

Correct : D. Miscellaneous Expenditure

11. If rate of proposed dividend is less than 10% of paid up capital, the rate of profit transferred to Reserve shall be………..

Correct : D. Nil

12. ………is concerned with accounting for amalgamation.

Correct : C. AS – 14

13. In ……………, a new company is formed to take over the business of two or more existing companies which go into liquidation

Correct : A. Amalgamation

14. Amalgamation is done for ………….

Correct : D. All of these

15. Company which is amalgamated into another company is called ……………..

Correct : A. Transferor company

16. …………….is the company into which a company is amalgamated.

Correct : B. Transferee Company

17. Purchase consideration is payable to …………..

Correct : B. Shareholders

18. In …..., a new company is formed to take over the business of an existing company which goes into liquidation.

Correct : B. External reconstruction

19. The purchase of an existing company which goes into liquidation by another existing company is known as …………..

Correct : C. Absorption

20. Pooling of interest method is used in the case of ……………..

Correct : C. Amalgamation in the nature of merger

21. Amalgamation adjustment account is opened in the books of Transferee Company to incorporate …………..

Correct : B. The statutory reserves of Transferor Company

22. Loss on realisation is transferred to …………..

Correct : C. Shareholders Account

23. ………… is a statutory reserve

Correct : B. Export profit reserve

24. Liquidation expenses paid by the transferee company are debited to ………

Correct : D. Goodwill Account

25. Under purchase method, the excess of net assets over purchase consideration is ……….

Correct : C. Credited to capital reserve account

26. X Ltd takes over Y Ltd and agrees to discharge debenture holders of Y Ltd at a premium of 5%. The premium should be debited to ………

Correct : A. Realisation Account

27. Which of the following is not a statutory reserve?

Correct : A. General reserve

28. Realisation Account is a …………..

Correct : C. Nominal Account

29. ……….is not transferred to realisation account

Correct : B. Fictitious asset

30. Trade liabilities include ………..

Correct : A. Creditors

31. Purchase consideration includes ………..

Correct : D. All of these

32. In………., an existing company’s financial structure is reorganized without liquidating the existing company and forming a new company.

Correct : D. Internal reconstruction

33. Internal reconstruction is done due to ………..

Correct : D. All of these

34. In ………., the company does not loss its identity

Correct : D. Internal reconstruction

35. Internal reconstruction can be ………

Correct : D. All of these

36. Capital of a company can be reduced by …………

Correct : D. All of these

37. Capital Reduction Account is a ………..

Correct : C. Temporary Account

38. The balance in Capital Reduction Account is transferred to …………

Correct : C. Capital Reserve

39. In internal reconstruction, increase in the value of fixed assets is credited to……….

Correct : D. Capital reduction account

40. In case of subdivision of share capital, the amount of share capital……….

Correct : C. Does not change

41. In case of subdivision of share capital, the total number of shares ……….

Correct : A. Increases

42. In internal reconstruction, the existing company will be ……….

Correct : D. None of these

43. In internal reconstruction, amount sacrificed by shareholders are credited to……..

Correct : C. Capital reduction account

44. When company converts its equity shares into capital stock, the account to be credited is …

Correct : B. Equity capital stock account

45. Alteration of shares of smaller amounts into shares of larger amount is called ……….

Correct : B. Consolidation of shares

46. In case of consolidation of share capital, the total number of shares ………….

Correct : B. Decreases

47. . ……..is called a factory of credit.

Correct : C. Bank

48. Banking companies are governed in India by ……….

Correct : A. Banking Regulation Act

49. CRR stands for …………

Correct : C. Cash Reserve Ratio

50. SLR stands for ……………

Correct : B. Statutory Liquidity Ratio

51. The method of rapidly posting entries in the books of banks is called as ……….

Correct : C. Slip System

52. The P&L A/c of Banking Companies are prepared as per ………….of Banking Regulation Act.

Correct : B. Form B of Schedule III

53. …….of profit is transferred to statutory reserves.

Correct : C. 25%

54. Banks show the provision for income tax under the head ……….

Correct : C. Other liabilities and provisions

55. Rebate on bills discounted is ………..

Correct : D. Income received in advance

56. NPA stands for………….

Correct : A. Non‐ Performing Assets

57. Schedule 1 is concerned with ………….

Correct : B. Capital

58. ………… is shown under Schedule 15.

Correct : C. Interest Expended

59. Acceptance, endorsements and other obligations come under the head…

Correct : B. Contingent liabilities

60. Assets are NPAs for a period not exceeding 12 months are called ………….

Correct : B. Substandard Assets

61. Assets are NPAs for a period exceeding 12 months are called ………….

Correct : C. Doubtful Assets

62. ………is a form of agreement between two parties in which one party agrees to make good for loss of another.

Correct : B. Insurance

63. The agreement of insurance is called as ………..

Correct : A. Policy

64. The consideration in insurance for covering the risk is called ………….

Correct : B. Premium

65. ……………is the party who undertakes the risk in insurance.

Correct : D. All of these

66. The party whose risk is covered in insurance is known as ……….

Correct : B. Insured

67. In …………., the insurer agrees to pay a certain sum of money to the policyholder either on his death or a certain age, which ever is less.

Correct : D. Life Insurance

68. General Insurance includes …………….

Correct : D. All of these

69. LIC was nationalized in …………..

Correct : C. 1956

70. Insurance business in India is regulated by ………….

Correct : B. IRDA

71. Under …………., the sum assured is given to the beneficiary only on death of policyholder.

Correct : A. Whole Life Policy

72. ………..is the amount payable to the insured on the happening of event.

Correct : C. Claim

73. An annual payment which an insurer guarantees to pay for lump sum money received in the beginning is called ………….

Correct : B. Annuity

74. The amount given to the policyholder due to his inability of paying further premium is called …………..

Correct : C. Surrender value

75. …………..is an agreement between two insurance companies whereby one transfers a part of risk to other.

Correct : A. Reinsurance

76. Revenue Account is also called ………….

Correct : B. Policyholders’ Account

77. Valuation balance sheet is prepared by ……………business.

Correct : C. Life Insurance

78. The commission earned by insurance companies from others for giving them business under reinsurance is called …………………

Correct : C. Commission on reinsurance ceded

79. The commission given by insurance companies to others for receiving business under reinsurance is called …………………

Correct : A. Commission on reinsurance accepted

80. Profit and Loss Account of General Insurance Companies are prepared in …………

Correct : C. Form B‐PL

81. The principle of subrogation is applicable to……………

Correct : D. All of these

82. ……….is an agreement between two insurance companies whereby one transfers a part of risk to other.

Correct : A. Reinsurance

83. The commission given by insurance companies to others for receiving business under reinsurance is called …………………

Correct : A. Commission on reinsurance accepted

84. Profit and Loss Account of General Insurance Companies are prepared in … ………

Correct : C. Form B‐PL

85. Section ….. of the Companies Act deals with issue of bonus shares

Correct : A. 63

86. When 4,000 equity shares of Rs.10 each is bought back at Rs.20 per share, the amount to be transferred to Capital Redemption Reserve is

Correct : B. 40,000

87. A contract that evidences a residual interest in the assets of an undertaking after deducting all its liabilities is called

Correct : B. equity instrument

88. Bonus shares can be issued only on getting approval of

Correct : D. all

89. Unsecured debentures are otherwise known as……. Debentures

Correct : A. simple

90. Ind AS 28 deal with……..

Correct : A. investments in association and joint ventures

91. The new Electricity Act was passed in the year…

Correct : A. 2003

92. IFRS….. deals with business combination

Correct : B. IFRS 3

93. The principle of subrogation is applicable to……………

Correct : D. All of the

94. Capital redemption reserve and security premium can be utilised for issuing ………bonus shares

Correct : A. fully paid

95. In case of buyback of shares by a listed company, the letter of offer to the shareholders shall be dispatched not earlier than –

Correct : C. 21 days from its submission to the SEBI in draft form

96. Under double account system, fixed assets are shown at…..

Correct : A. original cost

97. Own debenture account will appear on the …… side of B/S

Correct : B. asset

98. The most important income of a bank is

Correct : B. interest

99. Under Ind AS 103, assets and liabilities are recorded at

Correct : A. fair value

100. When the directors refund the fees already received by them,……. a/c is credited.

Correct : B. Capital reduction