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.
| 51. |
In case of redemption out f profit, an amount equal to face value of shares so redeemed should be transferred to |
| A. | Security premium |
| B. | Capital Redemption Reserve |
| C. | Dividend Equalization Reserve |
| D. | None of these |
| Answer» C. Dividend Equalization Reserve | |
| 52. |
Capital redemption reserve and security premium can be utilised for issuing bonus shares |
| A. | fully paid |
| B. | partly paid |
| C. | fully paid or partly paid |
| D. | none |
| Answer» B. partly paid | |
| 53. |
Alteration of shares of smaller amounts into shares of larger amount is called ..of share capital |
| A. | surrender |
| B. | subdivision |
| C. | consolidation |
| D. | none of these |
| Answer» D. none of these | |
| 54. |
No company limited by shares shall issue any preference share which is redeemable after the expiry of .. years from the date of issue. |
| A. | 20 |
| B. | 15 |
| C. | 10 |
| D. | 25 |
| Answer» B. 15 | |
| 55. |
When all debentures are redeemed, balance in the Debenture Redemption Fund Account is transferred to: |
| A. | capital reserve |
| B. | general reserve |
| C. | profit & loss appropriation a/c |
| D. | none of these |
| Answer» C. profit & loss appropriation a/c | |
| 56. |
After the redemption of debentures, any credit balance in the Sinking Fund a/c is transferred to -------- a/c. |
| A. | general reserve |
| B. | capital reserve |
| C. | P&L |
| D. | none of these |
| Answer» B. capital reserve | |
| 57. |
Forfeiture of shares results in compulsory termination of ------ due to non payment of allotment/call money. |
| A. | allotment |
| B. | membership |
| C. | subscription |
| D. | issue |
| Answer» C. subscription | |
| 58. |
On forfeiture of shares, which of the following account is credited with the amount of money already received on such shares? |
| A. | shares forfeited a/c |
| B. | share capital a/c |
| C. | unpaid calls a/c |
| D. | share premium a/c |
| Answer» B. share capital a/c | |
| 59. |
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. |
| A. | Both I and II |
| B. | Both I and III |
| C. | Both II and III |
| D. | I, II, III |
| Answer» D. I, II, III | |
| 60. |
Redemption of preference shares should not be regarded as reduction of ----- capital of the company. |
| A. | paid-up |
| B. | called-up |
| C. | subscribed |
| D. | authorized |
| Answer» E. | |
| 61. |
Buyback of shares should not exceed .percent of paid up capital and free reserve of the company. |
| A. | 50% |
| B. | 10% |
| C. | 5% |
| D. | 25% |
| Answer» E. | |
| 62. |
The rate of discount on issue of shares should not exceed . % of the nominal value of shares. |
| A. | 10 |
| B. | 2 |
| C. | 4 |
| D. | 5 |
| Answer» B. 2 | |
| 63. |
Debentures issued with a fixed or a floating charge on the assets of the company are called debentures |
| A. | Bearer |
| B. | Secured |
| C. | Simple |
| D. | Unsecured |
| Answer» C. Simple | |
| 64. |
As per IAS 1, Presentation of financial statement, ______ no of items would constitute complete set of financial statements. |
| A. | atleast 5 |
| B. | atleast 6 |
| C. | 5 |
| D. | 6 |
| Answer» E. | |
| 65. |
The difference between gross dividend receivable and dividend received is debited to - -------- |
| A. | Interim dividend |
| B. | tax deducted at source |
| C. | net dividend |
| D. | difference adjustment |
| Answer» C. net dividend | |
| 66. |
When an existing company takes over the business of one or more existing companies, it is called . |
| A. | amalgamation |
| B. | absorption |
| C. | internal reconstruction |
| D. | none of these |
| Answer» C. internal reconstruction | |
| 67. |
..shares are repayable after the expiry of the fixed period or at the option of the company. |
| A. | Participating |
| B. | Convertible |
| C. | Cumulative |
| D. | Redeemable |
| Answer» E. | |
| 68. |
The accumulated losses and fictitious assets of the transferor company are transferred to -------- a/c. |
| A. | equity share holders |
| B. | transferee company |
| C. | equity capital |
| D. | realization |
| Answer» B. transferee company | |
| 69. |
Under net payment method, purchase consideration includes all payments made to the share holders in the form of --------- |
| A. | Equity share |
| B. | preference share |
| C. | cash |
| D. | all of these |
| Answer» E. | |
| 70. |
Under which of the following circumstances can a company resort to internal reconstruction? |
| A. | accumulated huge losses |
| B. | shortage of capital |
| C. | over valued assets |
| D. | all of these |
| Answer» E. | |
| 71. |
.. lease is a lease that transfers substantially all the risks and rewards incidental o ownership of assets |
| A. | finance |
| B. | operating |
| C. | advanced |
| D. | maturity |
| Answer» B. operating | |
| 72. |
The method of rapidly posting entries in the books of banks is called as . |
| A. | Single Entry |
| B. | Cash Method |
| C. | Slip System |
| D. | None of these |
| Answer» D. None of these | |
| 73. |
The amount of profit kept a side to maintain uniform rate of dividend is called |
| A. | Ex Dividend |
| B. | Final Dividend |
| C. | Undistributed Dividend |
| D. | Dividend |
| Answer» D. Dividend | |
| 74. |
Every bank is required to maintain ----- with RBI in the form of cash, gold and securities an amount not less than 25% of their demand and time liabilities. |
| A. | CRR |
| B. | SLR |
| C. | statutory reserve |
| D. | branch adjustment |
| Answer» C. statutory reserve | |
| 75. |
A scheduled bank is required to maintain with RBI --------- at a prescribed percentage of their total time and demand deposit. |
| A. | SLR |
| B. | CRR |
| C. | statutory reserve |
| D. | branch adjustment |
| Answer» C. statutory reserve | |
| 76. |
In order to know value of shares, it is necessary to know the net value of the assets of the company. |
| A. | Intrinsic value |
| B. | Yield value |
| C. | Fair value |
| D. | None of these |
| Answer» B. Yield value | |
| 77. |
The issue of shares at discount provided the discount does not exceed 10% as specified in of the companies Act. |
| A. | Section80 |
| B. | Section 81 |
| C. | Section 79 |
| D. | Section 76 |
| Answer» D. Section 76 | |
| 78. |
When the directors refund the fees already received by them, . a/c is credited. |
| A. | cash |
| B. | Capital reduction |
| C. | directors |
| D. | fees |
| Answer» C. directors | |
| 79. |
Inter- company dividends are ..to the cost of investment in the subsidiary company for calculating goodwill or capital reserve. |
| A. | Added |
| B. | Deducted |
| C. | Remove |
| D. | None of the above. |
| Answer» C. Remove | |
| 80. |
Goodwill in case of a joint stock company is shown on the side under the heading of intangible assets |
| A. | Liability side |
| B. | Asset side |
| C. | Credit side |
| D. | Debit side |
| Answer» C. Credit side | |
| 81. |
All the profits are not available for the purpose of redemption of preference shares |
| A. | revenue |
| B. | capital |
| C. | Both A and B |
| D. | none |
| Answer» C. Both A and B | |
| 82. |
If rate of proposed dividend is less than 10% of paid up capital, the rate of profit transferred to Reserve shall be .. |
| A. | 10% |
| B. | 2.5% |
| C. | 5% |
| D. | Nil |
| Answer» E. | |
| 83. |
When the proposed dividend exceeds 20% of paid up capital, percentage of profit transferred to general reserve is .. |
| A. | 2.5% |
| B. | 5% |
| C. | 7.5% |
| D. | 10% |
| Answer» E. | |
| 84. |
In the calculation of , past profits will have to be adjusted, in order to dertemine the future expected profits. |
| A. | Shares |
| B. | Market value |
| C. | Fair value |
| D. | Goodwill |
| Answer» B. Market value | |
| 85. |
In case of ..preference shares, the arrears of dividend are carried forward and paid out of the profits of the subsequent years. |
| A. | Participating |
| B. | Convertible |
| C. | Cumulative |
| D. | Redeemable |
| Answer» D. Redeemable | |
| 86. |
A contract that evidences a residual interest in the assets of an undertaking after deducting all its liabilities is called |
| A. | bilateral contract |
| B. | equity instrument |
| C. | standard instrument |
| D. | none |
| Answer» C. standard instrument | |
| 87. |
In the case of joint stock companies , the assets and liabilities in B/S are arranged in the order of |
| A. | serial number |
| B. | performance |
| C. | availability |
| D. | none of these |
| Answer» C. availability | |
| 88. |
In the case of . only one of the combining companies survives and the other losses its separate identity. |
| A. | Acquisition |
| B. | Merger |
| C. | Amalgamation |
| D. | Formation |
| Answer» B. Merger | |
| 89. |
When 500 shares of Rs. 10 each on which Rs.3 on final call is not paid, share forfeited account is credited with |
| A. | Rs.1,500 |
| B. | Rs.3,500 |
| C. | Rs.5,000 |
| D. | Rs.2,000 |
| Answer» C. Rs.5,000 | |
| 90. |
The ratio which depicts the relationship between two items, one of which is drawn from the Balance Sheet and the other from the revenue account |
| A. | current ratio |
| B. | equity ratio |
| C. | net profit ratio |
| D. | debtors turnover ratio |
| Answer» E. | |
| 91. |
When own debentures are cancelled, any profit on cancellation is transferred to |
| A. | general reserve |
| B. | capital reserve |
| C. | p&laccount |
| D. | none |
| Answer» C. p&laccount | |
| 92. |
X Ltd takes over Y Ltd and agrees to discharge debenture holders of Y Ltd at a premium of 5%. The premium should be debited to |
| A. | Realisation Account |
| B. | Shareholders Account |
| C. | P&L Account |
| D. | None of these |
| Answer» B. Shareholders Account | |
| 93. |
The ratios that shows the capacity of the business unit to meet its short term obligation out of its short term resources is known as ______ |
| A. | solvency ratio |
| B. | leverage ratio |
| C. | liquidity ratio |
| D. | trend ratio |
| Answer» D. trend ratio | |
| 94. |
If the preference shareholder agree to sacrifice the arrear off preference dividend, it is credited to: |
| A. | Capital Reduction A/C |
| B. | Preference Shareholders A/C |
| C. | Goodwill A/c |
| D. | Profit& Loss A/C |
| Answer» B. Preference Shareholders A/C | |
| 95. |
The short term advances made by a bank to the stock brokers and bill brokers are called --------- |
| A. | Money at call |
| B. | short loan |
| C. | short provision |
| D. | inter-office adjustment |
| Answer» B. short loan | |
| 96. |
Section of the Companies Act 2013 deals with the issue of right shares |
| A. | 62 |
| B. | 63 |
| C. | 64 |
| D. | 68 |
| Answer» B. 63 | |
| 97. |
What is the term used to describe the time between the acquisition of assets for processing and their realization in cash or cash equivalents? |
| A. | processing cycle |
| B. | turnover |
| C. | operating cycle |
| D. | turnaround |
| Answer» D. turnaround | |
| 98. |
Which Exchange rate will be considered for conversion of share capital of subsidiary company. |
| A. | Opening Rate |
| B. | Closing rate |
| C. | Average Rate |
| D. | Rate of which date share acquired (actual) |
| Answer» E. | |
| 99. |
Investments made by a holding company in a subsidiary company are always to be shown in . |
| A. | Profit & Loss A/C |
| B. | Consolidated Balance Sheet. |
| C. | Minority Interest. |
| D. | Dividend A/C |
| Answer» C. Minority Interest. | |
| 100. |
After the implementation of scheme of internal reconstruction, any amount left in the capital reduction A/C will be transfer to: |
| A. | Capital Reserve A/C |
| B. | Capital A/c |
| C. | Profit & Loss A/C |
| D. | Shareholders A/C |
| Answer» B. Capital A/c | |