Accounting Standards Set 2
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This set of Corporate Accounting Multiple Choice Questions & Answers (MCQs) focuses on Accounting Standards Set 2
Q1 | A subsidiary company shall be excluded from consolidation when:
- Control is intended to be temporary
- It operates under severe long-term restrictions which significantly impair its ability to transfer funds to the parent
- Always included for consolidation
- Both a and b.
Q2 | The form of balance sheet is………………..
- Vertical
- Horizontal
- Horizontal and vertical
- None of the above
Q3 | The term current asset doesn’t cover
- Car
- Debtors
- Stock
- Prepaid expenses
Q4 | P&L statement is also known as
- Statement of operations
- Statement of income
- Statement of earnings
- All of the above
Q5 | Which of the following is true about financial statements?I)Financial statement gives a summary of accounts. II) Financial statements can be stated as recorded facts.
- Only I
- Only II
- Both I andII
- None of the above
Q6 | The statement of financial position and the balance sheet are synonyms
- True
- False
- none
- none
Q7 | Which of the following statements are true?I) Financial statements are only interim report. II) Financial statements are also known as annual records. III) Financial statements are historic.
- Both I and II
- Both I and III
- Both II and III
- I, II, III
Q8 | Certain assumptions are essential to prepare financial statements.
- True
- False
- none
- none
Q9 | Premium received on issue of shares cannot be utilised for ---------.
- for the issue of bonus shares .
- for writing of preliminary expenses
- for providing premium payable on redemption
- for distribution of dividend.
Q10 | In case of public limited company, after getting the-----------the company can startthe business
- Memorandum of Association
- Table A
- Certificate of commencement of business
- Articles of Association
Q11 | Trade Payables are recorded in………………….
- Current Liabilities
- Current Assets
- Equity
- Inventories
Q12 | In company Final Accounts Goodwill is shown under……………
- Current Liabilities
- Current Assets
- Fixed Assets
- Inventories
Q13 | Dividend is payable on the amount of…………………………..
- Profit
- Reserves
- Loss
- Income
Q14 | The dividend paid between two annual general meeting is knowna……………………….
- Final dividend
- Ex Dividend
- Interim Dividend
- Dividend
Q15 | Unclaimed dividend recorded on the…………………….. the balance sheet.
- Liability
- Assets
- Credit
- Debit
Q16 | A liability which can be measured only by using a substantial degree of estimation iscalled……………………….
- Contingent liabilities
- Contingent Assets
- Fixed Assets
- Non Current Liabilities
Q17 | Unquoted shares means……………………….
- Listed Shares
- Quoted Shares
- Unquoted Shares
- Unlisted Shares
Q18 | Bills receivable is ……………………..assets.
- Current
- Non - current
- Fixed Assets
- Investment
Q19 | The amount of profit kept a side to maintain uniform rate of dividend iscalled………………
- Ex Dividend
- Final Dividend
- Undistributed Dividend
- Dividend
Q20 | Director’s remuneration shall not exceed ………………. % of the net profits.
- 10%
- 20%
- 15%
- 13.333%
Q21 | Voluntary winding up:
- If period fixed for the company is expired.
- If company passes a special resolution the company wound up voluntarily.
- Members voluntary winding up is applicable to solvent companies only.
- All of the above
Q22 | Compulsory winding up:
- If a company unable to pay its debt
- If the number of members of company reduced below statutory limit.
- If a company does commence its business within a year from its incorporation.
- All of the above.
Q23 | The first item in order of payment to be made by liquidator is:
- Secured creditors
- Preferential creditors
- Liquidation expenses
- Preferential creditors
Q24 | Liquidator’s statement of receipts and payment is know as:
- Cash flow statement
- Cash book
- Liquidator’s final statement of account
- Deficiency accounts.
Q25 | A contributory is:
- Creditor
- A shareholder
- A debenture holder
- A convertible debenture holder