Corporate Accounting Set 15
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This set of Corporate Accounting Multiple Choice Questions & Answers (MCQs) focuses on Corporate Accounting Set 15
Q1 | In………., an existing company’s financial structure is reorganized without liquidating theexisting company and forming a new company.
- Amalgamation
- External reconstruction
- Absorption
- Internal reconstruction
Q2 | Internal reconstruction is done due to ………..
- Accumulated losses
- Shortage of working capital
- Large amount of fictitious assets
- All of these
Q3 | In ………., the company does not loss its identity
- Amalgamation
- External reconstruction
- Absorption
- Internal reconstruction
Q4 | Internal reconstruction can be ………
- Alteration of share capital
- Reduction of share capital
- Re‐organization of capital
- All of these
Q5 | Capital of a company can be reduced by …………
- Authorization of Articles
- Passing of a special resolution
- Confirmation of court
- All of these
Q6 | Capital Reduction Account is a ………..
- Nominal Account
- Permanent Account
- Temporary Account
- None of these
Q7 | The balance in Capital Reduction Account is transferred to …………
- General Reserve
- Profit and loss Account
- Capital Reserve
- Goodwill Account
Q8 | In internal reconstruction, increase in the value of fixed assets is credited to……….
- Capital reserve
- Share capital
- General reserve
- Capital reduction account
Q9 | In case of subdivision of share capital, the amount of share capital……….
- Increases
- Decreases
- Does not change
- None of these
Q10 | In case of subdivision of share capital, the total number of shares ……….
- Increases
- Decreases
- Does not change
- None of these
Q11 | In internal reconstruction, the existing company will be ……….
- Amalgamated
- Absorbed
- Liquidated
- None of these
Q12 | In internal reconstruction, amount sacrificed by shareholders are credited to……..
- Capital reserve
- General Reserve
- Capital reduction account
- None of these
Q13 | When company converts its equity shares into capital stock, the account to be credited is …
- Equity share capital account
- Equity capital stock account
- No entry
- None of these
Q14 | Alteration of shares of smaller amounts into shares of larger amount is called ……….
- Subdivision of shares
- Consolidation of shares
- Cancellation of shares
- None of these
Q15 | In case of consolidation of share capital, the total number of shares ………….
- Increases
- Decreases
- Does not change
- None of these
Q16 | . ……..is called a factory of credit.
- Company
- Firm
- Bank
- None of these
Q17 | Banking companies are governed in India by ……….
- Banking Regulation Act
- Indian Companies Act
- Reserve Bank of India Act
- All of these
Q18 | CRR stands for …………
- Current Reserve Ratio
- Capital Reserve Ratio
- Cash Reserve Ratio
- Capital Redemption Ratio
Q19 | SLR stands for ……………
- Savings Level Ratio
- Statutory Liquidity Ratio
- Standard Liquidity Ratio
- None of these
Q20 | The method of rapidly posting entries in the books of banks is called as ……….
- Single Entry
- Cash Method
- Slip System
- None of these
Q21 | The P&L A/c of Banking Companies are prepared as per ………….of Banking Regulation Act.
- Form A of Schedule III
- Form B of Schedule III
- Form A of Schedule VI
- Form B of Schedule VI
Q22 | …….of profit is transferred to statutory reserves.
- 10%
- 20%
- 25%
- 30%
Q23 | Banks show the provision for income tax under the head ……….
- Contingent liabilities
- Deposits
- Other liabilities and provisions
- Borrowings
Q24 | Rebate on bills discounted is ………..
- An income accrued but not received
- A liability
- An expense
- Income received in advance
Q25 | NPA stands for………….
- Non‐ Performing Assets
- Normal Performing Assets
- National Performing Asset
- None of these