MCQOPTIONS
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MCQOPTIONS
This section includes 194 Mcqs, each offering curated multiple-choice questions to sharpen your Bachelor of Business Administration (BBA) knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
The long term assets that have no physical existence but, possess a value is known as, |
| A. | Current assets |
| B. | Fixed assets |
| C. | Intangible assets |
| D. | Investments |
| Answer» D. Investments | |
| 2. |
The assets that can be easily converted into cash within a short period (i.e., 1 year or less is known as, |
| A. | Current assets |
| B. | Fixed assets |
| C. | Intangible assets |
| D. | Investments |
| Answer» B. Fixed assets | |
| 3. |
When two or more companies carrying on similar business decide to combine, a new company is formed, it is known as |
| A. | Merger |
| B. | Amalgamation |
| C. | Absorption |
| D. | Demerger |
| Answer» C. Absorption | |
| 4. |
When one of the existing companies take over business of another company or companies, it is known as |
| A. | Merger |
| B. | Amalgamation |
| C. | Absorption |
| D. | Demerger |
| Answer» D. Demerger | |
| 5. |
In case of .............., one existing company takes over the business of another company and no new company is formed |
| A. | Merger |
| B. | Amalgamation |
| C. | Absorption |
| D. | Demerger |
| Answer» D. Demerger | |
| 6. |
Hitesh Ltd. s purchase consideration is Rs.12,345 and Net Assets Rs.3,568, then........... |
| A. | Goodwill Rs. 8,777 |
| B. | Capital Reserve Rs. 8,777 |
| C. | Goodwill Rs. 15,913 |
| D. | Capital Reserve Rs. 15,913 |
| Answer» B. Capital Reserve Rs. 8,777 | |
| 7. |
Which type of asset class includes those assets which have only definite use and become valueless when the yield is over? |
| A. | Fixed asset |
| B. | Current asset |
| C. | Fictitious asset |
| D. | Wasting asset |
| Answer» E. | |
| 8. |
When two or more companies carrying on similar business decide to combine, a new company is formed, it is known as .................. |
| A. | Amalgamation |
| B. | Absorption |
| C. | Internal reconstruction |
| D. | External reconstruction |
| Answer» B. Absorption | |
| 9. |
When two or more companies carrying on similar business decide to combine, a new company is formed, it is known as .................. |
| A. | Amalgamation |
| B. | Absorption |
| C. | Internal reconstruction |
| D. | External reconstruction |
| Answer» B. Absorption | |
| 10. |
Repeating the same results without any variations irrespective of the number of times the program is run is known as |
| A. | Simple |
| B. | Complex |
| C. | Flexible |
| D. | Consistency |
| Answer» E. | |
| 11. |
Consistency refers to the ability of the computers of perform a variety of tasks, simple as well as complex. |
| A. | True |
| B. | False |
| C. | none |
| D. | none |
| Answer» C. none | |
| 12. |
The ability with which the computers remain functional to serve the user is termed as |
| A. | Reliability |
| B. | Accuracy |
| C. | Flexible |
| D. | Measurable |
| Answer» B. Accuracy | |
| 13. |
.is the amount payable by the purchasing companies to the vendor company for taking over the business of vendor company. |
| A. | Goodwill |
| B. | Total assets |
| C. | Purchase consideration |
| D. | None of these |
| Answer» D. None of these | |
| 14. |
Correcting the recognition measurement and disclosure of amounts in financial statements as if a prior period error had never occurred. This is: |
| A. | retrospective restatement |
| B. | retrospective application |
| C. | changes in accounting estimate |
| D. | delayed application |
| Answer» B. retrospective application | |
| 15. |
When the purchasing company does not take over a particular liability and the vendor company pays that liability, it will debit it to |
| A. | Realisation Account |
| B. | Bank Account |
| C. | Liability Account |
| D. | none |
| Answer» B. Bank Account | |
| 16. |
A term loan will be treated as NPA if interest or instalment and principal remain overdue for a period more than . Days |
| A. | 75 |
| B. | 50 |
| C. | 90 |
| D. | 100 |
| Answer» D. 100 | |
| 17. |
Net asset value method is based on the assumption that the company is ___________. |
| A. | a going concern |
| B. | going to be liquidated. |
| C. | A & B both |
| D. | none of the above |
| Answer» C. A & B both | |
| 18. |
Face value of debentures of subsidiary company, held by holding co.is deducted from: |
| A. | Debentures |
| B. | Cost of Control |
| C. | Minority Interest. |
| D. | Goodwill. |
| Answer» C. Minority Interest. | |
| 19. |
The time interval between the date of acquisition if shares in subsidiary company and date of balance sheet of holding company is known as : |
| A. | Pre-acquisition period |
| B. | Post -acquisition period. |
| C. | Pre- commencement peri |
| Answer» C. Pre- commencement peri | |
| 20. |
On an equity share of Rs. 20, the company has called up Rs. 16 but Rs.14 has been received by the company, the share capital account should be credited by |
| A. | Rs. 20 |
| B. | Rs. 16 |
| C. | Rs. 14 |
| D. | Rs. 6 |
| Answer» C. Rs. 14 | |
| 21. |
The balance in capital reduction a/c after writing off all accumulated loss, fictitious assets and overvalued assets are transferred to ------------- |
| A. | capital reserve |
| B. | general reserve |
| C. | reserve capital |
| D. | good will |
| Answer» B. general reserve | |
| 22. |
An item which may or may not be the liability of the company due to happening of certain event is |
| A. | Current Liability |
| B. | Fixed Liability |
| C. | Contingent Liabilit |
| D. | None of these |
| Answer» D. None of these | |
| 23. |
Under Ind AS 16, which of the following is not allowable as a directly attributable cost of a machine? |
| A. | delivery |
| B. | site preparation |
| C. | estimated dismantling costs |
| D. | initial test batches |
| Answer» E. | |
| 24. |
The company in which the liability of members is liable to pay the agreed amount at the time of winding up is called as .. |
| A. | Unlimited Company |
| B. | Company limited by shares |
| C. | Company limited by guarantee |
| D. | Liquidating Company |
| Answer» D. Liquidating Company | |
| 25. |
What is the amount an asset could achieve if sold between knowledgeable, willing parties in an arm s length transaction? |
| A. | current value |
| B. | net present value |
| C. | written down value |
| D. | fair value |
| Answer» E. | |
| 26. |
Under Ind AS 16, which two subsequent accounting treatments are allowed subsequently to initial recognition? |
| A. | cost model and present value model |
| B. | cost model and revaluation model |
| C. | fair value model and revaluation model |
| D. | fair value model and cost model |
| Answer» C. fair value model and revaluation model | |
| 27. |
Which of the following is not a requirement to capitalise development costs under Ind AS 38 Intangible Assets? |
| A. | the commercial feasibility for the asset may be uncertain |
| B. | it must be technically feasible |
| C. | the entity intends to sell the completed intangible asset |
| D. | the entity can demonstrate how the asset will generate future economic benefits |
| Answer» B. it must be technically feasible | |
| 28. |
Which of the following measurement models is not permitted for the subsequent measurement of intangible assets under Ind AS 38? |
| A. | revaluation model |
| B. | fair value model |
| C. | cost model |
| D. | capital assets pricing model |
| Answer» E. | |
| 29. |
Which of the below mentioned formula are covered by Ind AS 2? (i) FIFO, (ii) LIFO, (iii) Weighted Average. |
| A. | i, ii |
| B. | i, iii |
| C. | ii, iii |
| D. | all |
| Answer» C. ii, iii | |
| 30. |
Amalgamation adjustment account is opened in the books of Transferee Company to incorporate .. |
| A. | The assets o transferor company |
| B. | The statutory reserves of Transferor Company |
| C. | The liabilities of transferor company |
| D. | The statutory reserves of Transferee Company. |
| Answer» C. The liabilities of transferor company | |
| 31. |
The Amalgamation Adjustment Account appears in the books, it is shown under the heading of ......... in the balance sheet. |
| A. | Reserve and Surplus |
| B. | Fixed Assets |
| C. | Investments |
| D. | Miscellaneous expenditure |
| Answer» E. | |
| 32. |
Those preference shares which do not carry the right of share in excess profits are known as ------- preference shares. |
| A. | irredeemable |
| B. | non-cumulative |
| C. | non -convertible |
| D. | non-participating |
| Answer» E. | |
| 33. |
After convergence of Indian accounting standards with IFRS, new standard issued for preparing the cash flow statement is: |
| A. | ind as 10 |
| B. | ind as 3 |
| C. | ind as 7 |
| D. | ind as 12 |
| Answer» D. ind as 12 | |
| 34. |
Activities that result in changes in the size and composition of the equity capital and borrowings of an entity are called |
| A. | financing activities |
| B. | operating activities |
| C. | investing activities |
| D. | none of these |
| Answer» B. operating activities | |
| 35. |
Activities that result in changes in the size and composition of the equity capital and borrowings of an entity are called: |
| A. | operating activities |
| B. | investing activities |
| C. | financing activities |
| D. | none of these |
| Answer» D. none of these | |
| 36. |
Increase in share capital of a firm in the current year as compared to previous year should be recorded in the final cash flow statement under |
| A. | investing activities |
| B. | financing activities |
| C. | operating activities |
| D. | all of the above |
| Answer» C. operating activities | |
| 37. |
An entity shall explain how the transition from previous GAAP to IFRSs __________ its reported financial position, financial performance and cash flows. |
| A. | adjusted |
| B. | corroborated |
| C. | affected |
| D. | benefited |
| Answer» D. benefited | |
| 38. |
Which of the following is the starting point for an entity accounting in accordance with IFRSs? |
| A. | the date when the decision about adopting ifrs has been made |
| B. | the date of issuance of the first financial statement in accordance with ifrs |
| C. | the date of transition to ifrss |
| D. | the date when the explicit and unreserved statement of compliance with ifrss has been made |
| Answer» D. the date when the explicit and unreserved statement of compliance with ifrss has been made | |
| 39. |
Which of the following can be utilized for the redemption of preference shares of a company out of profit: |
| A. | shares forfeited account |
| B. | development rebate reserve account |
| C. | capital redemption reserve account |
| D. | dividend equalization reserve |
| Answer» E. | |
| 40. |
In purchase method, the excess of net asset of the transferor company acquired by the transferee company over the purchase consideration should be recognized as ------------ |
| A. | P&L |
| B. | good will |
| C. | general reserve |
| D. | capital reserve |
| Answer» E. | |
| 41. |
While preparing the transferee company s financial statement under amalgamation in the nature of purchase, the assets and liabilities taken over from the transferor company should be incorporated at -------- |
| A. | Cost |
| B. | book value |
| C. | revised value |
| D. | none |
| Answer» D. none | |
| 42. |
Which of the following a/c is debited when statutory reserve of the transferor company is taken over by the transferee company? |
| A. | goodwill a/c |
| B. | amalgamation adjustment a/c |
| C. | capital reserve a/c |
| D. | statutory reserve |
| Answer» C. capital reserve a/c | |
| 43. |
On a consolidated balance sheet, if the shares of a company have been bought for more than the balance sheet value then the difference would appear as: |
| A. | Goodwill |
| B. | Capital reserve |
| C. | Loss on purchase |
| D. | Profit on purchase |
| Answer» B. Capital reserve | |
| 44. |
If amalgamation is in the ..............., the General Reserve or Profit and Loss A/c balance will not be shown in the balance sheet. |
| A. | Form of Merger |
| B. | Form of purchase |
| C. | Net assets method |
| D. | Consideration method |
| Answer» C. Net assets method | |
| 45. |
In case of buyback of shares by a listed company, the letter of offer to the shareholders shall be dispatched not earlier than |
| A. | 10 days from its submission to the SEBI in draft form |
| B. | 15 days from its submission to the SEBI in draft form |
| C. | 21 days from its submission to the SEBI in draft form |
| D. | 30 days from its submission to the SEBI in draft form |
| Answer» D. 30 days from its submission to the SEBI in draft form | |
| 46. |
Preference shareholders are legally entitled to the repayment of capital in the event of liquidation of the company. |
| A. | True |
| B. | False |
| C. | none |
| D. | none |
| Answer» C. none | |
| 47. |
Fictitious Assets are shown on the asset side of the balance sheet of a company under the heading |
| A. | Fixed assets |
| B. | Current assets |
| C. | Tangible assets |
| D. | Miscellaneous Expenditure |
| Answer» E. | |
| 48. |
Fictitious assets are shown on the asset side of the balance sheet of a company under the heading ----------- |
| A. | Fixed asset |
| B. | current asset |
| C. | foot note |
| D. | none |
| Answer» B. current asset | |
| 49. |
When 8,00,000 shares of Rs.10 each is converted in to 80,000 shares of Rs.100 each, it is a case of |
| A. | sub division |
| B. | capital reduction |
| C. | consolidation |
| D. | none |
| Answer» D. none | |
| 50. |
Capital Redemption Reserve Account and Securities Premium Account can be only for issuing fully paid Bonus Shares and not for making partly paid shares into |
| A. | Fully paid |
| B. | Partly paid |
| C. | Converted |
| D. | None of these. |
| Answer» B. Partly paid | |