Corporate Accounting Set 19
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This set of Corporate Accounting Multiple Choice Questions & Answers (MCQs) focuses on Corporate Accounting Set 19
Q1 | In case of electricity companies, contingency reserve is created until itamounts to ….. of the original cost of the fixed assets.
- 5%
- 6%
- 4%
- 8%
Q2 | The profit and loss account under double account system is termed as…..
- revenue account
- income and expenditure account
- P&L account
Q3 | General insurance policies are generally taken for
- one year
- two years
- three years
- none
Q4 | IRDA Act came into effect in
- 1938
- 1999
- 2000
- none
Q5 | Reserve for unexpired risk is shown under
- reserves and surplus
- current liabilities
- provisions
- none
Q6 | The Insurance Act came in to effect in …..
- 1956
- 1998
- 1938
- 2000
Q7 | The fixed assets of an insurance company are shown in
- Schedule 6
- Schedule 7
- Schedule 8
- none
Q8 | Banks show the provisions for income tax under the head
- contingency accounts
- contingent liability
- other liabilities and provisions
- borrowings
Q9 | If the purchase price of debentures includes interest for the expiredperiod, the quotation is said to be …………..
- Ex‐interest
- Cum‐interest
- Co‐interest
- None of these
Q10 | Grants related to depreciable assets should be recognised as……., in theperiod in which their depreciation is charged
- income
- appropriaton
- provisions
- none
Q11 | ….. lease is a lease that transfers substantially all the risks and rewardsincidental o ownership of assets
- finance
- operating
- advanced
- maturity
Q12 | ……….. is called factory of credit
- company
- bank
- firm
- none
Q13 | Banking companies are governed in India by
- Banking Regulation Act
- Indian Companies Act
- RBI Act
- all the
Q14 | Schedule 1 is concerned with
- Capital
- Reserves and surplus
- interest earned
- none
Q15 | Interest on debentures is calculated on ______.
- Issue price.
- redeemable price
- face value
- market price.
Q16 | Transfer to capital redemption reserve can be made from ____.
- capital reserve.
- forfeited shares.
- general reserve
- securities
Q17 | Rights shares are those shares which are __________.
- first offered to the existing shareholders
- issued by a newly formed company.
- issued to the directors of the company.
- issued to holders of convertible debentures.
Q18 | In subdivision of shares, …… capital does not change
- Paid up
- Issued
- unissued
- none
Q19 | No journal entry is required for the cancellation of ………. Share capital
- Unissued
- paid up
- Subscribed
- none
Q20 | All business combinations are accounted for by applying the …….. method
- acquisition method
- Equity method
- both A and B
- none
Q21 | A term loan will be treated as NPA if interest or instalment and principalremain overdue for a period more than ……. Days
- 75
- 50
- 90
- 100
Q22 | Which of the following does not include under the head other assets
- silver
- interest accrued
- gold
- inter office adjustment
Q23 | ………is the dividend declared in the annual general meeting ofshareholders.
- Proposed Dividend
- Final Dividend
- Interim Dividend
- None of these
Q24 | Clear profit is the difference between
- reasonable return and appropriations
- total income and expenditure
- reasonable return and total profit
- none
Q25 | Surplus of electricity company is limited to
- 20% of capital base
- 20% of total assets
- 20% of clear profit
- 20% of reasonable return