Corporate Accounting Set 22

Bachelor of Business Administration (BBA),

Bachelor of Commerce (B Com)

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This set of Corporate Accounting Multiple Choice Questions & Answers (MCQs) focuses on Corporate Accounting Set 22

Q1 | When charge is created against specific assets of the company, it is called ‐‐‐‐‐‐‐‐‐‐‐‐‐ charge.
  • Floating
  • Fixed
  • Second
  • None of these.
Answer: Fixed
Q2 | Unsecured debentures are otherwise known as ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ debentures.
  • Simple
  • Mort age
  • Bearer
  • None of these.
Answer: Simple
Q3 | Debenture is a written ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of debt of a company
  • Articles
  • Acknowledgement
  • Payment
  • None of these.
Answer: Acknowledgement
Q4 | Premium on issue of debentures is a ‐‐‐‐‐‐‐‐‐‐‐.
  • Capital loss
  • Capital profit
  • Revenue profit
  • Revenue loss.
Answer: Capital profit
Q5 | Capital Redemption Reserve Account and Securities Premium Account can be only for issuing fullypaid Bonus Shares and not for making partly paid shares into ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
  • Fully paid
  • Partly paid
  • Converted
  • None of these.
Answer: Fully paid
Q6 | Bonus issue can be made out of securities premium collected in ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
  • Cash only
  • In kind
  • Partly in cash and in kind
  • None of these.
Answer: Cash only
Q7 | Bonus issue is permitted only if all partly paid shares are made‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
  • Fully paid shares
  • ¾ Fully paid
  • ¼ Fully paid
  • None of these
Answer: Fully paid shares
Q8 | Bonus issues ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ even when the shares are partly paid.
  • Can be made
  • Cannot be made
  • Both of them.
  • None of these
Answer: Can be made
Q9 | In order to know ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ value of shares, it is necessary to know the net value of the assetsof the company.
  • Intrinsic value
  • Yield value
  • Fair value
  • None of these
Answer: Intrinsic value
Q10 | If the actual profits are more than the expected normal profits, the difference is termed as ‐‐‐‐‐‐‐
  • Simple profit
  • Average profit
  • We gated Average profit
  • Super profit
Answer: Super profit
Q11 | Intrinsic value of share is calculated by dividing the ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of the company by the number ofshares
  • Market value of assets
  • Net asset
  • Original cost of asset
  • None of these
Answer: Net asset
Q12 | Fair value of a share in the simple average of intrinsic value and ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ value of a share
  • Nominal value
  • Face value
  • Market value
  • Yield value.
Answer: Yield value.
Q13 | In the calculation of ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐, past profits will have to be adjusted, in order to dertemine thefuture expected profits.
  • Shares
  • Market value
  • Fair value
  • Goodwill
Answer: Shares
Q14 | Fair value of a share is the ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ average of intrinsic value and yield value.
  • Weighted
  • Simple
  • Multiple
  • None of these.
Answer: Simple
Q15 | ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of the following is not concerned with the valuation of goodwill.
  • Earning capacity method
  • Super profit method
  • Average profit method
  • None of these
Answer: Earning capacity method
Q16 | In the balance sheet forfeited shares amount is to be added to ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐.
  • Share capital
  • Reserve
  • Surplus
  • None of these
Answer: Share capital
Q17 | Dividend declared between two Annual General Meetings.
  • Final dividend
  • Proposed dividend
  • Unclaimed dividend
  • Interim dividend
Answer: Interim dividend
Q18 | When the proposed dividend is more than 20 %, an amount equal to ‐‐‐‐‐‐‐‐‐‐‐ of the current profitsmust be transferred to reserve.
  • 5%
  • 7.5%
  • 2.5%
  • 10%
Answer: 10%
Q19 | Share holders cannot increase the rate of ‐‐‐‐‐‐‐‐‐ recomened by the Boared of Directors.
  • Interest
  • Profit
  • Dividend
  • None of these.
Answer: Dividend
Q20 | Advance payment of tax should be shown on the ‐‐‐‐‐‐‐‐‐‐‐‐ side of the balance sheet.
  • Liability side
  • Asset side
  • Debit side
  • Credit side
Answer: Asset side
Q21 | No dividend is payable on calls in ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
  • Arrears
  • Unpaid
  • Unclaimed
  • Advance
Answer: Advance
Q22 | Companies have a statutory obligation to prepare required by section 210 of the companies Act
  • Trading account
  • Profit and loss account
  • Balance sheet
  • Final accounts
Answer: Final accounts
Q23 | Companies have a statutory obligation to prepare final accounts required by ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of thecompanies Act 1956.
  • Section 215
  • Section 220
  • Section 210
  • Section 212
Answer: Section 210
Q24 | Companies have a statutory obligation to prepare final Accounts required by section 210 of the ‐‐‐‐‐‐‐‐‐‐‐‐1956.
  • Partnership Act
  • Banking Regulation Act
  • Insurance Act
  • Companies act.
Answer: Companies act.
Q25 | Companies have a statutory obligation to prepare final accounts required by section 210 of thecompanies Act ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
  • 1936
  • 1932
  • 1938
  • 1956
Answer: 1956
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