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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