1. If the purchase price of debentures includes interest for the expired period, the quotation is
said to be …………..
Correct : B. Cum‐interest
2. If the purchase price of debentures excluding interest for the expired period, the quotation
is said to be …………..
Correct : A. Ex‐interest
3. As per ………..it is the statutory obligation of companies to prepare their final accounts.
Correct : A. Sec 210
4. The Balance sheet of Companies are prepare in the form ……….
Correct : B. Part I of Schedule VI
5. The dividend declared between two annual general meeting is called ……….
Correct : C. Interim Dividend
6. The dividend recommended by the Board of Directors is called………
Correct : A. Proposed Dividend
7. Unclaimed dividend is shown in the balance sheet under the head ……..
Correct : B. Current Liabilities
8. . ……..is a charge against profit of the company
Correct : A. Provision
9. An item which may or may not be the liability of the company due to happening of certain
event is…………
Correct : C. Contingent Liability
10. Advance tax paid is shown in the balance sheet under the head……….
Correct : B. Loans and Advances
11. Preliminary expenses not written off are shown in the balance sheet under the head…
Correct : D. Miscellaneous Expenditure
12. Which of the following is not a statutory reserve?
Correct : A. General reserve
13. Realisation Account is a …………..
Correct : C. Nominal Account
14. Trade liabilities include ………..
Correct : A. Creditors
15. . ……..is called a factory of credit.
Correct : C. Bank
16. Banking companies are governed in India by ……….
Correct : A. Banking Regulation Act
17. CRR stands for …………
Correct : C. Cash Reserve Ratio
18. SLR stands for ……………
Correct : B. Statutory Liquidity Ratio
19. The method of rapidly posting entries in the books of banks is called as ……….
Correct : C. Slip System
20. The P&L A/c of Banking Companies are prepared as per ………of Banking Regulation Act.
Correct : B. Form B of Schedule III
21. . …….of profit is transferred to statutory reserves.
Correct : C. 25%
22. Banks show the provision for income tax under the head ……….
Correct : C. Other liabilities and provisions
23. Rebate on bills discounted is ………..
Correct : D. Income received in advance
24. NPA stands for………….
Correct : A. Non‐ Performing Assets
25. Schedule 1 is concerned with ………….
Correct : B. Capital
26. . ………… is shown under Schedule 15.
Correct : C. Interest Expended
27. Acceptance, endorsements and other obligations come under the head…
Correct : B. Contingent liabilities
28. Assets are NPAs for a period not exceeding 12 months are called ………….
Correct : B. Substandard Assets
29. Assets are NPAs for a period exceeding 12 months are called ………….
Correct : C. Doubtful Assets
30. . ………is a form of agreement between two parties in which one party agrees to make good
for loss of another.
Correct : B. Insurance
31. The agreement of insurance is called as ………..
Correct : A. Policy
32. The consideration in insurance for covering the risk is called ………….
Correct : B. Premium
33. . ……………is the party who undertakes the risk in insurance.
Correct : D. All of these
34. The party whose risk is covered in insurance is known as ……….
Correct : B. Insured
35. 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
36. General Insurance includes …………….
Correct : D. All of these
37. LIC was nationalized in …………..
Correct : C. 1956
38. Insurance business in India is regulated by …………. A. LIC B. IRDA C. RBI D. SEBI
193. Under …………., the sum assured is given to the beneficiary only on death of policyholder.
Correct : B. Endowment Policy
39. . ………..is the amount payable to the insured on the happening of event.
Correct : C. Claim
40. An annual payment which an insurer guarantees to pay for lump sum money received in the
beginning is called ………….
Correct : B. Annuity
41. The amount given to the policyholder due to his inability of paying further premium is called …………..
Correct : C. Surrender value
42. . …………..is an agreement between two insurance companies whereby one transfers a part
of risk to other.
Correct : A. Reinsurance
43. Revenue Account is also called ………….
Correct : B. Policyholders’ Account
44. Valuation balance sheet is prepared by ……………business.
Correct : C. Life Insurance
45. The commission earned by insurance companies from others for giving them business under
reinsurance is called …………………
Correct : C. Commission on reinsurance ceded
46. The commission given by insurance companies to others for receiving business under
reinsurance is called …………………
Correct : A. Commission on reinsurance accepted
47. Profit and Loss Account of General Insurance Companies are prepared in …………
Correct : C. Form B‐PL
48. The principle of subrogation is applicable to……………
Correct : D. All of these
49. Opening capital is ascertained by preparing:
Correct : D. Opening statement of affairs.
50. A Single entry system it:
Correct : B. Incomplete and unscientific
51. Single Entry system has effect:
Correct : A. One effect
52. In Single entry system, it is not possible to prepare:
Correct : B. Trial balance
53. A Single entry system is usually adopted by:
Correct : C. Government
54. Single Entry system is must suited where:
Correct : A. Cash transactions are many
55. Capital can be obtained by preparing:
Correct : B. Statement of affairs
56. Credit sale can be obtained by preparing:
Correct : C. Debtors A/c
57. Credit Purchase can be calculated by preparing:
Correct : D. Creditors A/c
58. In single entry system profit is calculated as follows:
Correct : C. Capital at the end + Drawing – Fresh capital -Opening capital
59. In single entry system only accounts are opened:
Correct : A. Personal A/c
60. Single entry system cannot be a maintained by:
Correct : A. Joint stock company
61. Single entry system of book – keeping is generally followed by:
Correct : A. Small business
62. A Statement of assets and liabilities prepared under the single entry system is called:
Correct : D. Statement of affairs
63. Net worth of an organization means the excess of its total assets over total:
Correct : C. Liabilities
64. Which one of is most likely to have the lowest rate of stock turn:
Correct : A. Jeweler
65. If a store’s mark up is 25% the margin must be:
Correct : D. 20%
66. If the rate of G.P on sale is 20% and cost of goods, sold is Rs. 100,000, then amount of G.P will
be equal to:
Correct : B. Rs.25,000
67. Bad -debts written off always affect the:
Correct : A. Debtors A/c
68. Company has ……………
Correct : D. All of the Above
69. Shareholders are :
Correct : B. Owners of the Company
70. Who are the real owners of a company?
Correct : C. Equity shareholders
71. A Company is created by :
Correct : B. Companies Act
72. Equity shares cannot be issued for the purpose of:
Correct : D. Distribution of dividend
73. The shares on which there is no any pre-fixed rate of dividend is decided, but the rate of
dividend is fluctuating every year according to the availability of profits, such share are called :
Correct : A. Equity Share
74. Preference shares, in case the holders of these have a right to convert their preference shares
into equity shares at their option according to the terms of issue, such shares are called :
Correct : C. Convertible Preference Share
75. Which shareholders have a right to receive the arrears of dividend from future profits :
Correct : C. Cumulative Preference Shares
76. Which shareholders are returned their capital after some specified time :
Correct : A. Redeemable Preference Shares
77. The following statements apply to equity/preference shareholders. Which one of them applies
only to preference shareholders?
Correct : D. Dividends are usually given at a set amount in every’ financial year.
78. Unless otherwise stated, a preference share is always deemed to be :
Correct : C. Cumulative, non-participating and non-convertible
79. The portion of the capital which can be called-up only on the winding up of the Company is
called
Correct : D. Reserve Capital
80. Capital included in the Total of Balance Sheet of a Company is called :
Correct : B. Subscribed Capital
81. Reserve Capital is also known by :
Correct : D. None of the above
82. In the Balance Sheet of a company, under the heading share capital, at the last is shown :
Correct : B. Subscribed Share Capital
83. Reserve Capital is a part of:
Correct : D. Capital to be called up only on liquidation of company
84. Which of the following statements is true? (C.S. Foundation, Dec. 2012)
Correct : B. Authorised Capital > Issued Capital
85. In case of private placement of shares, to raise the amount of capital a company :
Correct : B. does not invite the public
86. Shares issued by a company to its employees or directors in consideration of ‘Intellectual
Property Rights’ are called :
Correct : C. Sweat Equity Shares
87. Public subscription of shares include :
Correct : D. All of the Above
88. Issue of shares at a price lower than its face value is called :
Correct : C. Issue at a Discount
89. Persons who start a company are called ……………….
Correct : C. Promoters
90. Share Application Account is in the nature of:
Correct : B. Personal Account
91. If vendors are issued fully paid shares of 1,25,000 in consideration of net assets of
?1,50,000, the balance of 25,000 will be credited to :
Correct : C. Security Premium Reserve Account
92. Premium on the issue of shares should be shown :
Correct : B. On the Equity & Liabilities side of balance sheet
93. From which account, expenses on issue of shares will be written off first of all:
Correct : D. Securities Premium Reserve Account
94. Pro-rata allotment of shares is made when there is :
Correct : B. Oversubscription
95. If applicants for 80,000 shares were allotted 60,000 shares on prorata basis, the shareholder
who was allotted 1,200 shares must have applied for :
Correct : C. 1,600 Shares
96. If 500 shares of 10 issued at a premium of 1 on which 9 (including premium) have been
called and 7 including premium have been paid are forfeited, the forfeiture account should be credited by :
Correct : A. 3,000
97. Discount allowed on re-issue of forfeited shares is debited to :
Correct : B. Share forfeiture A/c
98. The balance of the forfeited shares account after re-issue of forfeited shares is transferred to :
Correct : C. Capital Reserve A/c
99. Madhu Ltd. forfeited 800 shares of `10 each issued at 10% premium to Shyam (` 9 called up) on which he did not pay ` 3 of allotment (including premium) and first call of `2. Out of
these, 600 shares were re-issued to Ram as fully paid up for `9 per share. What is to amount to be transferred to capital Reserve?