Quiznetik

Corporate Accounting | Set 7

1. In the case of marine hull insurance, reserve for unexpired risk is to be maintained @....... %of net premium

Correct : C. 100%

2. The cost of replacing an asset in its original condition is known as……

Correct : A. replacement cost

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

Correct : C. Slip System

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

Correct : B. Form B of Schedule III

5. …….. deals with separate financial statements.

Correct : A. Ind AS 110

6. The pre- acquisition loss of subsidiary should be deducted from …….. while calculating net assets

Correct : B. equity share capital

7. Ind AS ……. Deals with share based payments

Correct : A. 102

8. The accounting concept that is principally used to classify leases into operating and finance is…….

Correct : A. substance over from

9. Buy back of equity shares is a process of capital ……..

Correct : B. restructuring

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

Correct : C. Doubtful Assets

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

Correct : B. Insurance

12. The buy back of shares is also known as ……..

Correct : B. corporate equity repurchase

13. The buy back of shares may be done

Correct : D. all the above

14. Interest on debenture is ….

Correct : C. charge on profit

15. After all the debentures are redeemed the balance in the sinking fund is transferred to

Correct : A. General reserve

16. Debenture is document which creates a……

Correct : A. debt

17. When own debentures are cancelled, any profit on cancellation is transferred to

Correct : B. capital reserve

18. Profit not available for dividend includes

Correct : B. P&L account credit balance

19. All the …… profits are not available for the purpose of redemption of preference shares

Correct : B. capital

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

Correct : C. Form B‐PL

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

Correct : D. All of thes

22. The shares firstly offered to the existing shareholders are called as …………

Correct : A. Right shares

23. The security premium account is shown in the balance sheet under the head……….

Correct : B. Reserves & Surplus

24. ……..should be deducted from the share capital to determine the paid up cap ital.

Correct : C. Calls in arrears

25. The share capital account is debited with …………while forfeiting shares

Correct : C. Called capital

26. Discount or loss on issue of debenture is shown in the balance sheet under the head ……..

Correct : D. Miscellaneous expenditure

27. Debentures can be redeemed out of ……….

Correct : D. All of these

28. When preference shares are redeemed, it amounts to

Correct : D. none

29. Capital redemption reserve is created….

Correct : B. to meet legal requirements

30. No company limited by shares shall issue any preference share which is redeemable after the expiry of …….. years from the date of issue.

Correct : A. 20

31. Under Double account system, the balance sheet is prepared in ……parts

Correct : B. two

32. In case of electricity companies, contingency reserve is created until it amounts to ….. of the original cost of the fixed assets.

Correct : A. 5%

33. The profit and loss account under double account system is termed as…..

Correct : A. revenue account

34. General insurance policies are generally taken for

Correct : A. one year

35. IRDA Act came into effect in

Correct : B. 1999

36. Reserve for unexpired risk is shown under

Correct : C. provisions

37. The Insurance Act came in to effect in …..

Correct : C. 1938

38. The fixed assets of an insurance company are shown in

Correct : D. none

39. Banks show the provisions for income tax under the head

Correct : C. other liabilities and provisions

40. If the purchase price of debentures includes interest for the expired period, the quotation is said to be …………..

Correct : B. Cum‐interest

41. Grants related to depreciable assets should be recognised as……., in the period in which their depreciation is charged

Correct : A. income

42. ….. lease is a lease that transfers substantially all the risks and rewards incidental o ownership of assets

Correct : A. finance

43. ……….. is called factory of credit

Correct : B. bank

44. Banking companies are governed in India by

Correct : A. Banking Regulation Act

45. Schedule 1 is concerned with

Correct : A. Capital

46. Interest on debentures is calculated on ______.

Correct : C. face value

47. Transfer to capital redemption reserve can be made from ____.

Correct : C. general reserve

48. Rights shares are those shares which are __________.

Correct : A. first offered to the existing shareholders

49. In subdivision of shares, …… capital does not change

Correct : A. Paid up

50. No journal entry is required for the cancellation of ………. Share capital

Correct : A. Unissued

51. All business combinations are accounted for by applying the …….. method

Correct : A. acquisition method

52. A term loan will be treated as NPA if interest or instalment and principal remain overdue for a period more than ……. Days

Correct : C. 90

53. Which of the following does not include under the head other assets

Correct : C. gold

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

Correct : B. Final Dividend

55. Clear profit is the difference between

Correct : B. total income and expenditure

56. Surplus of electricity company is limited to

Correct : D. 20% of reasonable return

57. In the case of railway companies rent on leased lines is shown on

Correct : C. debit side of net revenue A/c

58. The acquiree in a business combination is also called a….. company

Correct : A. subsidiary

59. When 8,00,000 shares of Rs.10 each is converted in to 80,000 shares of Rs.100 each, it is a case of ………

Correct : C. consolidation

60. Section …… of the Companies Act 2013 deals with the issue of right shares

Correct : A. 62

61. A company formed and registered under ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐Act 1956.

Correct : B. Companies

62. A ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ Company puts restriction on the transfer of its shares.

Correct : A. Private company

63. A new company cannot issue shares at‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.

Correct : B. Discount

64. ‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is an invitation made by the company to the public for subscribing its shares.

Correct : C. Prospectus

65. The maximum extent to which a company can raise share‐capital is called ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ capital.

Correct : B. Authorized

66. ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ Shares carry a fixed rate of dividend.

Correct : A. Preference

67. Share application account is in the nature of ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ account.

Correct : A. Personal

68. The discount on the issue of shares should not exceed ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ normally.

Correct : A. 10%

69. Profit on the re‐issue of forfeited shares is transferred to ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ account.

Correct : B. Capital reserve

70. Capital reserve will appear on the liability side of the balance sheet under the head ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.

Correct : A. Reserves & surpluses

71. Profit on re‐issue of forfeited shares will appear on the ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ side of the balance sheet.

Correct : B. Liability side

72. Debentures are normally paid back after the expiry of the period this is technically called ‐‐‐‐‐‐‐‐‐‐‐‐.

Correct : B. Redemption

73. Redemption of debentures means ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐

Correct : B. Discharge of liability

74. Premium on redemption of debentures account is in the nature of ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐

Correct : C. Nominal account

75. After all the debentures are redeemed; the balance in the sinking fund account is transferred to ‐‐‐‐‐‐ ‐‐‐‐‐‐‐.

Correct : B. General reserve

76. When own debentures are cancelled, any profit on cancellation is transferred to ‐‐‐‐‐‐‐‐‐‐‐‐‐‐

Correct : C. Capital Reserve

77. For the same purchase price profit on cancellation of debentures is more when purchase on ‐‐‐‐‐‐‐‐‐‐‐ ‐‐ basis.

Correct : B. Cum‐Interest

78. When debentures are redeemed from out of profits an equal amount is transferred to ‐‐‐‐‐‐‐‐‐‐‐‐ account.

Correct : C. Debenture redemption reserve

79. When debentures are redeemed in annual installments the redemption is known as ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.

Correct : A. Redemption by drawing a lot

80. a preference share is one which enjoys a preferential right regarding payment of ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐

Correct : B. Share capital

81. The issue of shares at discount provided the discount does not exceed 10% as specified in ‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐ of the companies Act.

Correct : C. Section 79

82. The share premium account can be utilized to write off the ‐‐‐‐‐‐‐‐‐‐‐‐‐ expense of the company.

Correct : C. Preliminary expenses

83. Which of the following not the uses of share premium.

Correct : B. Issue of fully paid bonus shares

84. When shares originally issued at discount are forfeited, the discount in respect of them is to be ‐‐‐‐‐‐‐

Correct : B. Credited

85. Once the share premium account is credited the same, if the premium is not received.

Correct : C. Can be debited

86. Dividend is payable on the ‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of the shares.

Correct : A. Paid up value

87. Share can be forfeited for ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.

Correct : A. For non‐payment of call money

88. When shares are forfeited the share capital account is debited by ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐

Correct : C. Paid up amount

89. ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ have priority over equity as to the receipt of individuals and as to assets in the event of liquidation.

Correct : C. Preference shares

90. Preference shares cannot be redeemed unless they are ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐

Correct : B. Fully paid

91. Called up capital minus calls in appear is ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐

Correct : C. Paid up capital

92. The minimum amount of capital which must be subscribed by the public before a public company can allot shares is ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐

Correct : B. Minimum subscription

93. Find the odd one:‐

Correct : A. Subscribed capital

94. When 500 shares of Rs. 10 each on which Rs.3 on final call is not paid, share forfeited account is credited with ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐

Correct : B. Rs.3,500

95. If one share is allotted for every five shares applied, an applicant for 1,000 shares will get ‐‐‐‐‐‐‐‐‐‐‐

Correct : A. 200 shares

96. If a share of Rs.10 is issued at a premium of 20%, the issue price is ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐

Correct : B. Rs.12

97. Right issue means issue of shares to ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐

Correct : B. Existing share holders

98. Find the odd one:‐

Correct : C. To distribute dividend in cash

99. When shares are oversubscribed, allotment is made on ‐‐‐‐‐‐‐‐‐‐‐‐‐‐ basis

Correct : B. Pro‐data

100. ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ capital of a company can be called up only in the event of winding up.

Correct : A. Reserve