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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