1. Pro-rata payment is applicable when the cash available for competing liabilities of the same class is..
Correct : A. insufficient
2. Purchase consideration can be calculated by…
Correct : C. net assets method
3. ABC & Co. takes over the running business of PQR & Co. This is known as…
Correct : B. absorption
4. The Liability of the members of a limited company is…
Correct : D. limited
5. Foreign Debtors appear at the year end on...
Correct : A. the balance sheet rate of exchange
6. Accounting Standard 11 (AS 11) is prescribed by the…
Correct : C. institute of chartered accountants of india
7. 1. The underwriting commission in the case of debentures as per Companies Act, should not exceed_________
Correct : A. 2.5% of the price at which debenture are issued
8. The Buy Back of equity shares is governed by________________ of Companies Act
Correct : A. section 117 c
9. A feature which is common in all cases or merger__________________-
Correct : D. purchase of one comapany by another company
10. Changes in the rate of Preference dividend payable in future without any change in the amount of capital is known as ___
Correct : B. variation of shareholders rights
11. In the case of members voluntary winding up liquidator is appointed by _____________
Correct : C. the company in general meeting
12. R LTD. Issued a debenture of Rs.100 each at Rs.90. The underwriting commission will be paid on___________
Correct : B. rs.90
13. Buy Back refers to______________
Correct : C. refund of equity share capital
14. Accounting for Absorption is governed by______________
Correct : D. as 14
15. Equity Shareholders giving up their claim to the reserves & accumulated profit amounts to______________
Correct : C. compromise/ arrangement
16. Amount of retirement benefits of employees exceeding Rs.20,000 per employees is treated as____________
Correct : D. preferential creditors
17. M LTD. Issued share at a face value of Rs. 100 with a premium of Rs.20 per share. The underwrting commission will be calculated on __________
Correct : A. rs.120
18. Buy Back must be completed within_______________
Correct : D. 12 months
19. According to AS 14, Transferor company means the company__________
Correct : B. which is amalgamated into another company
20. In Interanl Reconstruction____________________
Correct : B. no company is liquidated
21. Accrued Holiday remuneration becoming payable to any workman is treated as ________________________
Correct : C. over-riding preferential creditors
22. If the whole of the issue of shares or debentures is underwritten it is known as_______________________
Correct : D. complete or fully underwriting
23. Buy Back must expenses may be treated as_________________
Correct : C. revenue or deffered revenue expenses
24. On Amalgamation, Profit & Loss A/c (Dr.) balance of the vendor company is closed by___________
Correct : B. debit to equity shareholders a/c
25. The existing 1,000 shares of Rs. 100 each are altered to 10,000 shares of Rs.10 each. This is known as__________________
Correct : A. sub-division
26. If the remuneration to liquidator is payable as a percentage of collection_______________
Correct : A. exclude opening cash & bank balance
27. If a part of the issue of share or debenrues is underwritten, it is termed as__________________-
Correct : D. partial underwriting
28. In case of Buy Back at a discount the amount of discount is transferred to _________________
Correct : A. capital reserve a/c
29. 'Pooling of interest' is a method of_____________________
Correct : D. accounting of amalgamtion
30. Fictitious Assets are to be transferred to ___________________
Correct : A. internal reconstruction
31. The proceeds of assets not specifically pledged & nthe surplus of the assets specifically pledged is first available for_________________
Correct : B. legal charges, liquidators remuneration & expenses
32. The underwriting commission in the case of debentures as per Companies Act, should not exceed_________
Correct : B. 2.5% of the price at which debenture are issued
33. Non-Monetary Items which are carried in terms of historical cost determinated in a foreign currency should be reporte using exchange rate at the date of _____
Correct : C. transaction
34. A feature which is common in all cases or merger__________________-
Correct : A. purchase of one comapany by another company
35. Accounts of LLP are to be audited by _____________
Correct : C. chartered accountant
36. In the case of members voluntary winding up liquidator is appointed by _____________
Correct : A. the company in general meeting
37. R LTD. Issued a debenture of Rs.100 each at Rs.90. The underwriting commission will be paid on___________
Correct : A. rs.90
38. Conversion of currency is covered in AS______
Correct : A. 11
39. Accounting for Absorption is governed by______________
Correct : A. as 14
40. Certificate of incorporation of LLP is issued by_______________
Correct : B. registrar of companies
41. Amount of retirement benefits of employees exceeding Rs.20,000 per employees is treated as____________
Correct : B. preferential creditors
42. M LTD. Issued share at a face value of Rs. 100 with a premium of Rs.20 per share. The underwrting commission will be calculated on __________
Correct : A. rs.120
43. The Balance in receivable as on the date of Balance sheet is converted at rate______________
Correct : A. on the date of balance sheet
44. According to AS 14, Transferor company means the company__________
Correct : A. which is amalgamated into another company
45. LLP can be dissolved by the order of____________
Correct : C. nclt
46. Accrued Holiday remuneration becoming payable to any workman is treated as ________________________
Correct : B. over-riding preferential creditors
47. If the whole of the issue of shares or debentures is underwritten it is known as_______________________
Correct : D. complete or fully underwriting
48. The depreciation of Fixed Assets is converted at rate________________
Correct : A. date of purchase
49. On Amalgamation, Profit & Loss A/c (Dr.) balance of the vendor company is closed by___________
Correct : C. debit to equity shareholders a/c
50. A Limited Liability Partnership has ________
Correct : B. perpetual succession
51. If the remuneration to liquidator is payable as a percentage of collection_______________
Correct : A. exclude opening cash & bank balance
52. If a part of the issue of share or debenrues is underwritten, it is termed as__________________-
Correct : D. partial underwriting
53. The Balance in exchange difference on transaction of export sale is transferred to _________________
Correct : D. profit & loss a/c
54. 'Pooling of interest' is a method of_____________________
Correct : A. accounting of amalgamtion
55. rights/ Duties of partners are governed by_______________
Correct : B. llp agreement
56. The proceeds of assets not specifically pledged & nthe surplus of the assets specifically pledged is first available for_________________
Correct : A. legal charges, liquidators remuneration & expenses
57. Out Of The following, Direct Expense Is
Correct : D. carriage inward
58. Goodwill is a
Correct : C. intangible asset
59. Income received in advance is
Correct : B. a liability
60. Sales are equal to
Correct : A. Cost of goods sold plus profit
61. Interest on drawings is
Correct : C. a gain for the business
62. Which of the following is not a fixed asset
Correct : C. inventory
63. Which of the following is a current liability
Correct : C. bank overdraft
64. Which of the following is not an intangible asset
Correct : A. Stock
65. In the case of net worth method of single entry system, the net profit is ascertained by
Correct : C. preparing
66. Capital at the beginning of the year is ascertained by preparing
Correct : B. opening statement of affairs
67. The amount of opening stock can be ascertained by preparing
Correct : A. Memorandum trading account
68. The closing balance in the creditors account can be ascertained from the
Correct : B. total creditors account
69. the depreciation charged on an asset is debited to
Correct : B. depreciation account
70. in case of straight line method, the amount of deprecation
Correct : D. remains same every year
71. amortization is related to
Correct : B. intangible assets
72. Depletion method is more suitable for
Correct : B. mining industry
73. Depletion is a process of
Correct : B. allocation
74. The main objective of providing depreciation is
Correct : A. To calculate true profit
75. Under diminishing balance method, depreciation is calculated on
Correct : B. written down value
76. Loss on sale of machinery should be written off against
Correct : C. depreciation fund account
77. Depreciation arises because of
Correct : B. wear and tear
78. When provision for depreciation account is maintained, the amount of depreciation is debited
to
Correct : B. depreciation account
79. If original cost of an asset is rs. 60000 and its scrap value is Rs. 10000, its depreciable cost is
Correct : B. 50000
80. Under diminishing balance method,
Correct : B. the amount on which deprecation is calculated falls every year
81. The term ‘depletion’ applies to decrease in value of
Correct : C. wasting asset
82. The term amortization applies to decrease in book value of
Correct : A. Intangible fixed asset
83. For providing depreciation on lease hold property, the appropriate method is
Correct : B. fixed installment method
84. Accumulated depreciation is an example of
Correct : D. a contra account.
85. Share application is classified as
Correct : A. Real account
86. A newly established company cannot issue shares at par
Correct : C. discount
87. The minimum share application is
Correct : B. 5% of the face value
88. The difference between subscribed capital and called up capital
Correct : B. uncalled capital
89. The number of days required from the time of issue of the prospectus to the complete
allotment should not exceed
Correct : D. 120 days
90. The excess price received on the par value of shares should be credited to
Correct : C. security premium account
91. The security premium will be shown under the heading
Correct : D. none of these.
92. As per Table A of the companies act, the interest on calls in advance is
Correct : C. 6%
93. The rate of interest a company can charge on calls in arrears according to Table A of the
companies act is
Correct : C. 5%
94. The rate of discount on shares cannot exceed.
Correct : B. 10%
95. Premium on issue of shares can be used for
Correct : A. Issue of bonus shares
96. When shares are forfeited the share capital account is debited by
Correct : B. called up amount
97. When forfeited shares (which were originally issued at a discount ) are reused at a premium,
the amount of such premium will be credited to
Correct : B. security premium account
98. When an existing company offers its shares for sale to the existing shareholders, it is known
as
Correct : C. right issue
99. Dividends are usually paid on
Correct : D. paid up capital
100. Which of the following should be deducted from the shares capital to find out paid up capital