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.
| 101. |
After the implementation of the scheme of internal reconstruction , any surplus in capital reduction A/C is transferred to : |
| A. | Capital A/C |
| B. | Profit & Loss A/C |
| C. | Shareholders A/C |
| D. | Capital reserve A/C |
| Answer» E. | |
| 102. |
In case of public limited company, after getting the-----------the company can start the business |
| A. | Memorandum of Association |
| B. | Table A |
| C. | Certificate of commencement of business |
| D. | Articles of Association |
| Answer» D. Articles of Association | |
| 103. |
..should be deducted from the share capital to determine the paid up cap ital. |
| A. | Security premium |
| B. | Calls in advance |
| C. | Calls in arrears |
| D. | Discount on issue |
| Answer» D. Discount on issue | |
| 104. |
Intrinsic value of share is calculated by dividing the of the company by the number of shares |
| A. | Market value of assets |
| B. | Net asset |
| C. | Original cost of asset |
| D. | None of these |
| Answer» C. Original cost of asset | |
| 105. |
.on shares have priority over payment of paid up share capital of that class. |
| A. | Calls in advance |
| B. | Calls in arrears |
| C. | Partially paid up shares. |
| D. | Debentures |
| Answer» B. Calls in arrears | |
| 106. |
All revenue, taxes due to government within ..before the date of commencement of winding up is preferential. |
| A. | 12 months |
| B. | 24 months |
| C. | 30 months |
| D. | 180days |
| Answer» D. 180days | |
| 107. |
reconstruction refers to the reduction of capital to cancel any paid up capital. |
| A. | External |
| B. | Internal |
| C. | Amalagamation |
| D. | Absorption |
| Answer» C. Amalagamation | |
| 108. |
have priority over equity as to the receipt of individuals and as to assets in the event of liquidation. |
| A. | Equity shares |
| B. | Deferred shares |
| C. | Preference shares |
| D. | Sweat equity shares |
| Answer» D. Sweat equity shares | |
| 109. |
If the intrinsic values of shares exchanged are not equal, the difference is paid in ........... |
| A. | Cash |
| B. | Debenture |
| C. | Pref. share |
| D. | Assets |
| Answer» B. Debenture | |
| 110. |
Amount due to workman is rank with .in the event of liquidation of the company. |
| A. | Government Dues |
| B. | Secured creditors |
| C. | Unsecured creditors |
| D. | Preferential liabilities |
| Answer» C. Unsecured creditors | |
| 111. |
The amount given to the policyholder due to his inability of paying further premium is called .. |
| A. | Annuity |
| B. | Bonus |
| C. | Surrender value |
| D. | Claim |
| Answer» D. Claim | |
| 112. |
Under policy the sum assured becomes payable on the attainment of a specific age or on death whichever is earlier |
| A. | whole time life policy |
| B. | endowment policy |
| C. | with profit policy |
| D. | none of these |
| Answer» C. with profit policy | |
| 113. |
That part of the capital which will be called up only in the event of winding up of the company is called ------- capital |
| A. | issued |
| B. | paid-up |
| C. | reserve |
| D. | uncalled |
| Answer» D. uncalled | |
| 114. |
A company being a creation of law cannot die a natural death. It comes to an end by law through the process of liquidation |
| A. | True |
| B. | False |
| C. | none |
| D. | none |
| Answer» B. False | |
| 115. |
The minimum amount of capital which must be subscribed by the public before a public company can allot shares is |
| A. | Allotment money |
| B. | Minimum subscription |
| C. | Subscribed capital |
| D. | Issued capital. |
| Answer» C. Subscribed capital | |
| 116. |
While preparing P/L account , rebate on bills discounted to be provided shall be deducted from discount received in -------- |
| A. | Schedule 16 |
| B. | Schedule 15 |
| C. | Schedule 14 |
| D. | schedule 13 |
| Answer» E. | |
| 117. |
The minimum amount of capital which must be subscribed by the public before allotment is called |
| A. | allotment money |
| B. | Minimum subscription |
| C. | subscribed capital |
| D. | None of these |
| Answer» C. subscribed capital | |
| 118. |
In ., the insurer agrees to pay a certain sum of money to the policyholder either on his death or a certain age, which ever is less. |
| A. | Fire Insurance |
| B. | Marine Insurance |
| C. | Burglary Insurance |
| D. | Life Insurance |
| Answer» E. | |
| 119. |
The minimum application money to be paid by an applicant must not be less than .as per Companies Act. |
| A. | 10% |
| B. | 5% |
| C. | 15% |
| D. | 20% |
| Answer» C. 15% | |
| 120. |
The dividend paid between two annual general meeting is known a . |
| A. | Final dividend |
| B. | Ex Dividend |
| C. | Interim Dividend |
| D. | Dividend |
| Answer» D. Dividend | |
| 121. |
is the dividend declared in the annual general meeting of shareholders. |
| A. | Proposed Dividend |
| B. | Final Dividend |
| C. | Interim Dividend |
| D. | None of these |
| Answer» C. Interim Dividend | |
| 122. |
The difference between receivable and dividend received is debited to tax deducted at source. |
| A. | Gross dividend |
| B. | Net dividend |
| C. | Average dividend |
| D. | Final dividend |
| Answer» B. Net dividend | |
| 123. |
Compulsory cancellation of shares by the company y due to non payment of allotment or call money is called . |
| A. | Surrender of Shares |
| B. | Buy back of shares |
| C. | Forfeiture of shares |
| D. | All of these |
| Answer» D. All of these | |
| 124. |
Companies may issue debentures as security against loans taken from banks/financial institutions. |
| A. | principal |
| B. | primary |
| C. | collateral |
| D. | chargeable |
| Answer» D. chargeable | |
| 125. |
Dividend paid or declared are subject to corporate dividend Tax @ as per recent finance Act. |
| A. | 12.5% |
| B. | 17% |
| C. | 15% |
| D. | 10% |
| Answer» C. 15% | |
| 126. |
An annual payment which an insurer guarantees to pay for lump sum money received in the beginning is called . |
| A. | Premium |
| B. | Annuity |
| C. | Claim |
| D. | Policy |
| Answer» C. Claim | |
| 127. |
When the purchasing company bears the liquidation expenses, it will debit the expenses to |
| A. | Vendor Company s Account |
| B. | Bank Account |
| C. | Goodwill Account |
| D. | none |
| Answer» D. none | |
| 128. |
Profit and Loss Account of General Insurance Companies are prepared in |
| A. | Form A PL |
| B. | Form B RA |
| C. | Form B PL |
| D. | Form B BS |
| Answer» D. Form B BS | |
| 129. |
At the time of , inter company debts and acceptances are to be cancelled out. |
| A. | Merger |
| B. | Absorption. |
| C. | Internal reconstruction. |
| D. | Consolidation. |
| Answer» E. | |
| 130. |
Companies have a statutory obligation to prepare final Accounts required by section 210 of the 1956. |
| A. | Partnership Act |
| B. | Banking Regulation Act |
| C. | Insurance Act |
| D. | Companies act. |
| Answer» E. | |
| 131. |
A Banking company required to prepare final accounts according to schedule to the banking Regulation Act. |
| A. | III |
| B. | IV |
| C. | V |
| D. | VI |
| Answer» B. IV | |
| 132. |
Acceptances, endorsements and obligations on behalf of a customer will be shown as ----- in the balance sheet of a company. |
| A. | other asset |
| B. | other liability |
| C. | borrowings |
| D. | contingent liability |
| Answer» E. | |
| 133. |
The commission earned by insurance companies from others for giving them business under reinsurance is called |
| A. | Commission on reinsurance accepted |
| B. | Agents commission |
| C. | Commission on reinsurance ceded |
| D. | None of these |
| Answer» D. None of these | |
| 134. |
.is an agreement between two insurance companies whereby one transfers a part of risk to other. |
| A. | Reinsurance |
| B. | Sub insurance |
| C. | Shared Policy |
| D. | None of these |
| Answer» B. Sub insurance | |
| 135. |
..is an agreement between two insurance companies whereby one transfers a part of risk to other. |
| A. | Reinsurance |
| B. | Sub insurance |
| C. | Shared Policy |
| D. | None of these |
| Answer» B. Sub insurance | |
| 136. |
The commission given by insurance companies to others for receiving business under reinsurance is called |
| A. | Commission on reinsurance accepted |
| B. | Agents commission |
| C. | Commission on reinsurance ceded |
| D. | None of these |
| Answer» B. Agents commission | |
| 137. |
The commission given by insurance companies to others for receiving business under reinsurance is called |
| A. | Commission on reinsurance accepted |
| B. | Agents commission |
| C. | Commission on reinsurance ceded |
| D. | None of these |
| Answer» B. Agents commission | |
| 138. |
is a form of agreement between two parties in which one party agrees to make good for loss of another. |
| A. | Contract |
| B. | Insurance |
| C. | Banking |
| D. | Mutual fund |
| Answer» C. Banking | |
| 139. |
is a form of agreement between two parties in which one party agrees to make good for loss of another. |
| A. | Contract |
| B. | Insurance |
| C. | Banking |
| D. | Mutual fund |
| Answer» C. Banking | |
| 140. |
A company required to prepare its balance sheet according to form A in the III schedule to the banking Regulation Act. |
| A. | Insurance company |
| B. | Joint stock company |
| C. | Banking company |
| D. | None of these. |
| Answer» D. None of these. | |
| 141. |
A company required to prepare in profit & loss Account according to in to III schedule to the banking regulation Act. |
| A. | Form A |
| B. | Form B |
| C. | Form C |
| D. | Form D |
| Answer» C. Form C | |
| 142. |
A company required to prepare its project and loss account according to Form B in the Schedule III to the Banking Regulation Act. |
| A. | Insurance company |
| B. | Joint stock company |
| C. | Banking company |
| D. | None of these. |
| Answer» D. None of these. | |
| 143. |
A Banking company required to prepare its balance sheet according to in the schedule III to the banking |
| A. | Form A |
| B. | Form B |
| C. | Form C |
| D. | Form D |
| Answer» B. Form B | |
| 144. |
The security premium account is shown in the balance sheet under the head . |
| A. | Share capital |
| B. | Reserves & Surplus |
| C. | Secured loans |
| D. | Current liabilit |
| Answer» C. Secured loans | |
| 145. |
Discount or loss on issue of debenture is shown in the balance sheet under the head .. |
| A. | Reserves & Surplus |
| B. | Secured loans |
| C. | Current liabilities |
| D. | Miscellaneous expenditure |
| Answer» E. | |
| 146. |
A company registered with Registrar of Companies under Indian Companies Act is called as .. |
| A. | Government |
| B. | Registered |
| C. | Chartered |
| D. | Statutory |
| Answer» C. Chartered | |
| 147. |
Companies have a statutory obligation to prepare final accounts required by of the companies Act 1956. |
| A. | Section 215 |
| B. | Section 220 |
| C. | Section 210 |
| D. | Section 212 |
| Answer» D. Section 212 | |
| 148. |
Companies have a statutory obligation to prepare final accounts required by section 210 of the companies Act |
| A. | 1936 |
| B. | 1932 |
| C. | 1938 |
| D. | 1956 |
| Answer» E. | |
| 149. |
The accounting concept that is principally used to classify leases into operating and finance is . |
| A. | substance over from |
| B. | prudence |
| C. | neutrality |
| D. | completeness |
| Answer» B. prudence | |
| 150. |
In , a new company is formed to take over the business of two or more existing companies which go into liquidation |
| A. | Amalgamation |
| B. | External reconstruction |
| C. | Absorption |
| D. | Internal reconstruction |
| Answer» B. External reconstruction | |