1) The current
investments are valued on closing date at ______
(a) market
value
(b)
cost of purchase
(c) lower of cost or market value
(d)
higher of cost and fair value
2) Any
reduction to market value of current investment from cost, on valuation date is
debited to ______
(a)
Revaluation reserve
(b) Profit and loss
account
(c)
Capital Reserve
(d)
General reserve
3) Investments
in immovable properties are to be shown under ______
(a) fixed
assets
(b)
current assets
(c)
current investments
(d) long-term
investments
4) The cost of
right shares is ______
(a) added to the cost of investment
(b)
subtracted from the cost of investments
(c) no
treatment is required
(d)
none of the above
5) Investments
intended to be held for less than 12 months is called ______ investment.
(a)
annual
(b)
current
(c) long-term
(d) trade
6) The
requirements regarding investment are specified in AS ______.
(a)
3
(b) 11
(c)
13
(d) 14
7) Right
shares are offered in ratio of ______.
(a) number shares held
(b) cost of shares
(c)
face value of shares
(d) paid up value of
shares
8) The cost of
investment sold is to be calculated as per ______method.
(a)
FIFO
(b) LIFO
(c)
Weighted average
(d) Simple average
9) The
carrying amount of current investment is to be shown at ______.
(a) face
value
(b)
cost
(c)
market value
(d) lower of cost or
market value
10) Equity shares
can be bought back ______.
(a) out of profits only
(b) out of
proceeds of fresh issue only
(c) out of capital profits only
(d) its free
reserves, or the securities premium account, or the proceeds of shares.
11) If equity
shares have been bought back out of free reserves, amount equal to the face
value of equity shares bought back should be transferred to ______.
(a) development rebate reserve
(b) general reserve
(c) sinking fund
(d) capital
redemption reserve
12) A company may purchase its own shares out
of ______.
(a) its free reserves only
(b) the securities premium account only
(c) the proceeds of any shares only
(d) any or
all of these
13) ______
is not a free reserve for the purpose of buyback of shares.
(a) Profit & Loss A/c
(b) General Reserve
(c) Dividend Equalization Reserve
(d)
Revaluation reserve
14) No company shall purchase its own shares
unless the buy-back is of less than 25% of the ______
(a) Total Paid-up capital of the company
(b) Total paid-up capital and reserves of the company
(c) Total paid-up
capital and free reserves of the company
(d) Total nominal capital and fee reserves of the company
15) On buyback of shares, there is a reduction
in the share capital to the extent of the ______
(a) market value of the shares
bought back
(b) face value of the share bought back
(c) called-up value of the shares
bought back
(d) unpaid
value of shares bought back
16) Maximum buy back in a year can be ______
(a) 10
(b) 25
(c) 20
(d) 30
17) The premium paid on buy back should be
provided out of ______
(a) security
premium
(b) statutory premium
(c) share capital
(d) capital reserve
18) The Debt : Equity ratio, after buy-back
should not exceed ______
(a) 2 : 1
(b) 1 : 2
(c) 1 : 1
(d) 3 : 4
19) In Internal Reconstruction
______
(a) no company is liquidated
(b)
only one company goes into liquidation
(c)
two or more companies are liquidated
(d) one or more companies go into liquidation
20) Balance in
Capital Reduction A/c is generally transferred to ______
(a)
General Reserve
(b) Capital Reserve
(c) Profit
& Loss A/c
(d)
None of the above
21) The existing
1,000 shares of `
1
each are altered 100 shares of ` 10 each.
This is shown as ______
(a) consolidation
(b)
sub-division
(c)
conversion in stock
(d)
surrender
22) The existing
1000 shares of ` 100 each
are altered to 10,000 shares of ` 10 each. This is known as ______
(a)
consolidation
(b) sub-division
(c)
conversion in stock
(d)
surrender
23) The credit
balance in capital reduction a/c is utilized for ______
(a) paying
off dissentient shareholders
(b) Writing off
deferred expenses
(c)
Issuing bonus shares
(d)
none of the above
24) The scheme of
internal reconstruction involves ______ company.
(a) one
(b)
two
(c)
three
(d)
many
25) Fictitious
assets are to be transferred to ______.
(a) Capital reduction A/c
(b)
Security premium
(c)
Share capital
(d)
Capital reserve
26) Investment
costing of ` 24,000
given to Bank for bank overdraft of `16,000. The capital reduction is debited by ______.
(a) ` 4,000
(b) ` 8,000
(c)
` 7,200
(d)
` 4,500
27) Provision for
taxation is ` 1,00,000.
The tax liability of the company is settled at Rs. 80,000 and it is paid
immediately. Amount credited to capital reduction is ______.
(a) ` 80,000
(b)
` 1,00,000
(c) ` 20,000
(d)
` 60,000
28) 6% debentures
of ` 100 each ` 1,00,000 to
be converted into such number of 8% debentures of ` 50 each as to generate
the same amount of interest as before. The amount of 8% debentures will be ______.
(a) ` 1,00,000
(b)
` 25,000
(c) ` 75,000
(d)
` 1,20,000
29) Existing 1000
shares of `1 each are
altered to100 shares of ` 10 each.
This is known as ______ .
(a) consolidation of shares
(b) conversion of stock
into shares
(c) subdivision of
shares
(d) surrender of shares
30) Dividends are
usually paid on ______ .
(a)
authorized capital
(b)
issued capital
(c)
forfeited shares
(d) paid up capital
31) ______ is not
shown under the head ‘Share Capital’ in the balance sheet of a company.
(a)
Preference share capital
(b)
Calls-in-arrears
(c)
Forfeited shares
(d) Preference dividend
32) As per
schedule III, to the Companies Act, 2013 ‘unclaimed dividends’ are to be shown
as ______
(a)
current asset
(b) current liability
(c)
reserves and surplus
(d)
none of the above
33) Interim
dividend of a company can be declared by ______
(a) only
be shareholders
(b)
board of directors after approval of stock exchange
(c) board of directors
(d)
None of the above
34) ______ is not
a secured loan.
(a)
debentures
(b) fixed deposits
(c) term
loan from banks
(d)
none of the above
35) Any amount
payable within 12 months from date of Balance Sheet is called ______
(a)
capital
(b)
loan
(c)
contingent liability
(d) current liability
36) Calls in
arrears is to be ______
(a) shown
debtors
(b) reduced from share
capital
(c) shown
as investments
(d)
ignored
37) The uncalled
amount in investment in shares is shown as ______
(a)
investment
(b) contingent
liabilities
(c)
current liabilities
(d)
current assets
38) In Balance
Sheet, securities premium should be shown under ______
(a) share
capital
(b) reserves &
surplus
(c)
current liabilities
(d)
fixed assets
39) ______do not
come under reserves & surplus.
(a)
capital redemption reserve
(b)
general reserve
(c) provident fund
(d)
sinking fund
40) Padma Ltd.
proposed a dividend of 15%. The called up equity capital of the company is ` 3,00,000 calls in arrears amounted to `. 20,000 Dividend payable is ______
(a) ` 42,000
(b)
` 49,500
(c)
` 39,000
(d)
` 34,500
41) ______ is not
a fixed asset.
(a)
Goodwill
(b)
Copy right
(c) loose tools
(d) Live stock.
42) A new company
can not issue share at ______
(a) Discount
(b)
Premium
(c) Par
(d) Par to promoters.
43) ______ is
shown as footnote to the Balance sheet
(a) Contingent liability
(b)
Unrecorded liability
(c) Investment
(d) Unpaid liability.
44) Professional
ethics ––––––
(a)
Increases goodwill
(b)
increases ROI
(c) builds
a competitive edge
(d) All of the above
45) Ethics ––––––
(a)
Rejects bribery
(b)
Develops honesty
(c)
Develops integrity
(d) All of the above
46) Ethics
can be applied to ––––––
(a)
Journalism
(b)
Finance and Accounting
(c) Human
resources
(d) All of the above
47) Whistle
blowing ––––––
(a) can
deal with misconduct
(b)
prevents embarrassing public disclosure
(c)
Exposes unethical behavior
(d) All of the above
48) Whistle
blowers could be ––––––
(a) an
employee
(b)
a contractor
(c) a
supplier
(d) All of the above
49) Whistle
blowers are like ––––––
(a) Eyes
of public
(b)
Ears of public
(c) Hands
of public
(d) a and b
50) Code of
ethics ––––––
(a) Guides
the employee
(b)
Minimizes subjective standards
(c) Builds
public trust
(d) All of the above
51) The purpose
of code of ethics are ––––––
(a)
Compliance
(b)
Marketing
(c) Risk
mitigation
(d) All of the above
52) Ethical
behavior should be practiced with ––––––
(a)
Supplier
(b)
Customer
(c)
Shareholders
(d) stakeholders
53) In India CSR
is made mandatory w.e.f. ––––––
(a)
1-4-2013
(b)
1-12-2014
(c) 1-4-2014
(d)
1-4-2018
54) A Company has
to spend on CSR ––––––
(a) 10% of
N.P
(b) 2% of N.P
(c) 5% of
N.P
(d)
11% of N.P
55) CSR is
governed by –––––– of companies Act 2013
(a) 135
(b)
198
(c) 123
(d)
125
56) If the
company fails to comply with CSR obligations the penalty is not less than –––––
(a) Rs
20,000
(b)
Rs 30,000
(c) Rs 50,000
(d)
Rs 75,000
57) Donating a
time towards community is ––––––
(a)
Ethical responsibility
(b)
Legal responsibility
(c) Economic
responsibility
(d) Philanthropic
responsibility
58) Accounting
and finance need ––––––
(a) Legal
rules only
(b)
Ethical rules only
(c) Social
rules only
(d) All of the above
59) ASB is
constituted by ––––––
(a) ICAI
(b)
Central Government
(c) State
Government
(d)
None of the above
60) ASB is
constituted in ––––––
(a) 1977
(b)
2014
(c) 2015
(d)
2002
61) The reason
for unethical reporting includes ––––––
(a) self
interest
(b)
Lack of professional support
(c) Delay
in judgment
(d) All of the above
62) Unethical
behavior results in ––––––
(a) Loss
of tax revenue to government
(b)
Loss of market capitalization
(c) Loss
of human capital
(d) All of the above
63) Code of
ethics sets out ––––––
(a)
Company values
(b)
ethics
(c) objectives
(d) All of the above
64) The buyback of shares has to be authorised by
––––––.
(a)
Company
(b)
Members
(c) Employees
(d) Articles of Association
65) The components of workplace ethical behavior
are ___________.
a) honesty
b) legality
c) disclosure
d)
all of these
66) The carrying amount of long-term investment
is to be shown at ___________.
a)
Cost
b) Market value
c) Face value
d) Cost or market value whichever is lower
67) Bills
receivable is shown under ______ in Balance Sheet.
a) Trade Receivable
b) Other
Current Assets
c) Short
term loans
d) Cash and
cash equivalents
68) The
term ‘Ethics’ comes from______ word.
a) Greek
b) Latin
c) Indian
d) English
69) The final accounts of companies are to be prepared in accordance with the provisions of ______ of Companies Act 2013.
a) Schedule III
b) Schedule
IV
c) Schedule
II
d) Schedule
I
70) Arrears
of preference dividend is shown under ______ Liabilities.
a) Current
b) Contingent
c) Short
term
d) Long term
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