Corporate Accounting Set 9
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This set of Corporate Accounting Multiple Choice Questions & Answers (MCQs) focuses on Corporate Accounting Set 9
Q1 | Which of the following does not involve liquidation of any company?
- internal reconstruction
- amalgamation
- absorption
- external reconstruction
Q2 | Under which of the following circumstances can a company resort to internalreconstruction?
- accumulated huge losses
- shortage of capital
- over valued assets
- all of these
Q3 | The balance in capital reduction a/c after writing off all accumulated loss, fictitiousassets and overvalued assets are transferred to -------------
- capital reserve
- general reserve
- reserve capital
- good will
Q4 | Which of the following result in reduction of capital?
- Reducing share capital
- reducing the amount payable to creditors
- appreciation in the value of assets
- all of these
Q5 | Which of the following is not an alteration of capital?
- consolidation of shares
- sub- division of shares
- conversion of shares in to stock
- paid off paid up capital in excess of needs of the company.
Q6 | Internal reconstruction can be done by ----------
- Alteration of share capital
- reduction of share capital
- issue of share capital
- all of these
Q7 | Which of the following is not a case of combination?
- external reconstruction
- internal reconstruction
- amalgamation
- absorption
Q8 | The term banking is defined in section ….
- section 5 of banking regulation Act
- section 4
- section 7
- none of these
Q9 | A bank can open a branch only at the permission of the…
- SBI
- RBI
- Government.
- none of these
Q10 | Schedule 16 relates to….
- interest earned
- interest expended
- operating expenses
- none of these
Q11 | Schedule 9 relates to….
- fixed assets
- borrowings
- advances
- capital
Q12 | Banks are required to transfer ….. of their profits to statutory reserve
- 20%
- 25%
- 10%
- none of these
Q13 | Assets acquired by a bank in satisfaction of a claim are known as…
- non-banking assets
- performing assets
- standard assets
- none of these
Q14 | Assets which do not carry more than normal credit risk is known as….
- loss asset
- risk asset
- standard asset
- none of these
Q15 | On standard asset a minimum provision of….is required
- .25%
- .10%
- .40%
- none of these
Q16 | ------ represents that part of discount received during the year by a bank whichrelates to the next accounting year.
- trade discount
- normal discount
- unexpired discount
- cash discount
Q17 | A scheduled bank is required to maintain with RBI --------- at a prescribedpercentage of their total time and demand deposit.
- SLR
- CRR
- statutory reserve
- branch adjustment
Q18 | Every bank is required to maintain ----- with RBI in the form of cash, gold andsecurities an amount not less than 25% of their demand and time liabilities.
- CRR
- SLR
- statutory reserve
- branch adjustment
Q19 | Which of the following is not an advance given by a bank?
- loan
- overdraft
- deposit
- cash credit
Q20 | ------ is a liability which may or may not arise in future depending on happening ofsome uncertain future event.
- contingent liability
- bills for collection
- non-banking liability
- bills payable
Q21 | Acceptances, endorsements and obligations on behalf of a customer will be shown as----- in the balance sheet of a company.
- other asset
- other liability
- borrowings
- contingent liability
Q22 | NPA for a period not exceeding 12 months is called as ----- asset.
- loss
- standard
- sub-standard
- doubtful
Q23 | Advanced tax paid by a banking company is shown as ---- in the Balance Sheet.
- Advance
- Investment
- Other assets
- contingent liability
Q24 | Provision for Income tax is shown in a bank’s Balance Sheet as ------
- Contingent liability
- Contingent asset
- Borrowings
- other liabilities and provisions
Q25 | Rebate on bills discounted is shown in the Balance Sheet as ------
- Advances
- Other liabilities & provisions
- Other income
- reserves & surplus