Corporate Accounting Set 7
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This set of Corporate Accounting Multiple Choice Questions & Answers (MCQs) focuses on Corporate Accounting Set 7
Q1 | Discount on issue of debentures is a ---------
- capital loss
- capital profit
- revenue loss
- revenue profit
Q2 | Which of the following is a method of redemption of debentures?
- draw of lots
- conversion
- open market purchase
- all of these
Q3 | Interest on debenture is -----
- An appropriation of profit
- a charge against profit
- an adjustment of profit
- none of these
Q4 | After the redemption of debentures, any credit balance in the Sinking Fund a/c istransferred to -------- a/c.
- general reserve
- capital reserve
- P&L
- none of these
Q5 | Dividend is paid on …..capital
- called
- paid up
- issued
- none of these
Q6 | In the case of joint stock companies , the assets and liabilities in B/S are arranged in theorder of …
- serial number
- performance
- availability
- none of these
Q7 | Dividend declared in between two annual general meeting is called….
- unclaimed dividend
- interim dividend
- proposed dividend
- scrip dividend
Q8 | The amount set aside to meet the loss of bad debt is…
- Liability
- reserve
- provision
- contingent liability
Q9 | Unclaimed dividend is shown in…
- P/L Account
- P/L Appropriation account
- Balance sheet
- None of these
Q10 | Advance payment of tax is a….
- Prepaid expense
- general reserve
- interim dividend
- provision for taxation
Q11 | When the proposed dividend exceeds 20% of paid up capital, percentage of profittransferred to general reserve is…..
- 2.5%
- 5%
- 7.5%
- 10%
Q12 | Which of the following represents source of fund in the balance sheet of a company?
- secured loan
- share capital
- reserves & surplus
- all of these
Q13 | Which of the following does not represent application of fund of a company?
- fixed asset
- good will
- debentures
- debtors
Q14 | Which of the following reserves cannot be distributed as dividend to share holders?
- securities premium
- profit on forfeiture of shares
- profit on sale of fixed assets
- all of these
Q15 | Which of the following reserve does not appear in the balance sheet of a company?
- secret reserve
- general reserve
- capital reserve
- specific reserve
Q16 | Fictitious assets are shown on the asset side of the balance sheet of a company under theheading -----------
- Fixed asset
- current asset
- foot note
- none
Q17 | Unclaimed dividend is shown on the liability side of the balance sheet of a company as ---------
- Share capital
- current liabilities
- Reserves & Surplus
- non- current liability
Q18 | Dividend may be declared out of ----------------
- Current profit
- past reserves
- money provided by government
- all of these
Q19 | Financial statement in relation to a company includes:
- Balance sheet
- Statement of P&L
- Cash flow statement
- all of these
Q20 | Which of the following is not a long term borrowing of a company?
- Debentures
- term loans
- loans repayable on demand from banks
- long- term finance lease obligations
Q21 | Calls in advance is shown in the balance sheet as -------------
- Current liabilities
- added to called-up capital
- current assets
- deduction from called -up capital
Q22 | The difference between gross dividend receivable and dividend received is debited to ---------
- Interim dividend
- tax deducted at source
- net dividend
- difference adjustment
Q23 | Pooling of interest method is applicable for amalgamation in the nature of….
- merger
- consolidation
- reconstruction
- realization
Q24 | For amalgamation in the nature of merger, the shareholders holding at least or more of the equity shares of the transferor company becomes the equity shareholders of the transferee company.
- 90%
- 80%
- 100%
- none of these
Q25 | Realization loss is transferred to …..
- Preference shareholders a/c
- equity shareholders a/c
- creditors a/c
- none of these