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.
| 151. |
In a pre-packaged accounting software reports are generated from the software could be the . |
| A. | Package |
| B. | Plan |
| C. | Course |
| D. | none |
| Answer» B. Plan | |
| 152. |
If the two companies have different accounting policies in respect of the same item, then they make necessary changes to adopt .............. accounting policies. |
| A. | LIFO method |
| B. | FIFO method |
| C. | Weighted method |
| D. | Uniform |
| Answer» E. | |
| 153. |
If a company makes a default in delivering the to the registrar or n holding the statutory meeting, then company is compulsorily wound up by the court. |
| A. | Audit report |
| B. | Income tax report |
| C. | Statutory report |
| D. | Financial Statement |
| Answer» D. Financial Statement | |
| 154. |
Computerized accounting requires transaction data to be entered into |
| A. | Accounting Package. |
| B. | Accounting software |
| C. | Accounting estimates |
| D. | none |
| Answer» B. Accounting software | |
| 155. |
Purchase consideration includes .. |
| A. | Cash |
| B. | Shares |
| C. | Debentures |
| D. | All of these |
| Answer» E. | |
| 156. |
In case of .............., one existing company takes over the business of another company and no new company is formed. |
| A. | Amalgamation |
| B. | Absorption |
| C. | Reconstruction |
| D. | None of the Above |
| Answer» C. Reconstruction | |
| 157. |
The purchase of an existing company which goes into liquidation by another existing company is known as .. |
| A. | Amalgamation |
| B. | External reconstruction |
| C. | Absorption |
| D. | Internal reconstruction |
| Answer» D. Internal reconstruction | |
| 158. |
In ..., a new company is formed to take over the business of an existing company which goes into liquidation. |
| A. | Amalgamation |
| B. | External reconstruction |
| C. | Absorption |
| D. | Internal reconstruction |
| Answer» C. Absorption | |
| 159. |
In ., an existing company s financial structure is reorganized without liquidating the existing company and forming a new company. |
| A. | Amalgamation |
| B. | External reconstruction |
| C. | Absorption |
| D. | Internal reconstruction |
| Answer» E. | |
| 160. |
When one of the existing companies take over business of another company or companies, it is known as ........... |
| A. | Amalgamation |
| B. | Absorption |
| C. | Internal reconstruction |
| D. | External reconstruction |
| Answer» C. Internal reconstruction | |
| 161. |
Where large number of accounting data is involved spreadsheet software may not work . |
| A. | Effective |
| B. | Speedy |
| C. | Accurate |
| D. | Perfect |
| Answer» B. Speedy | |
| 162. |
According to SEBI guidelines, a Company will have to create debenture redemption reserve equivalent to the amount of the following percentage of debenture issued: |
| A. | 50% |
| B. | 25% |
| C. | 70% |
| D. | 100% |
| Answer» C. 70% | |
| 163. |
In the case of marine hull insurance, reserve for unexpired risk is to be maintained @....... %of net premium |
| A. | 50% |
| B. | 80% |
| C. | 100% |
| D. | 20% |
| Answer» D. 20% | |
| 164. |
Preparation of consolidated Balance Sheet of Holding Co. and its subsidiary company as per |
| A. | As 11 |
| B. | AS 22 |
| C. | AS 21 |
| D. | AS 23 |
| Answer» B. AS 22 | |
| 165. |
Holdings of minority will by the number of bonus shares received by them. |
| A. | Increase |
| B. | Decrease |
| C. | Remain same |
| D. | None of the above |
| Answer» B. Decrease | |
| 166. |
means any person employed in any skilled or unskilled, manual, supervisory (wages less than 1600 p.m.), technical work. |
| A. | Workman |
| B. | Creditors |
| C. | Trade receivable |
| D. | Directors |
| Answer» B. Creditors | |
| 167. |
If AB Ltd buys more than 50% of the shares in CD Ltd then which of the following statements accurately summarizes the relationship between these two firms? |
| A. | AB Ltd is a subsidiary undertaking of CD Ltd |
| B. | CD Ltd is the parent undertaking |
| C. | AB Ltd is the parent undertaking |
| D. | There is no significant financial relationship between the two |
| Answer» D. There is no significant financial relationship between the two | |
| 168. |
The pre- acquisition loss of subsidiary should be deducted from .. while calculating net assets |
| A. | share capital |
| B. | equity share capital |
| C. | debentures |
| D. | none |
| Answer» C. debentures | |
| 169. |
In case of electricity companies, contingency reserve is created until it amounts to .. of the original cost of the fixed assets. |
| A. | 5% |
| B. | 6% |
| C. | 4% |
| D. | 8% |
| Answer» B. 6% | |
| 170. |
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 | |
| 171. |
While calculating purchase consideration ............... values of assets is to be considered. |
| A. | Book value |
| B. | Revalued price |
| C. | Average price |
| D. | Capital |
| Answer» C. Average price | |
| 172. |
When the Net Assets are less than the Purchase Consideration, the difference will be |
| A. | Debited to Goodwill A/c. |
| B. | Debited to General Reserve |
| C. | none of these |
| D. | none |
| Answer» B. Debited to General Reserve | |
| 173. |
If the purchase price of debentures excluding interest for the expired period, the quotation is said to be .. |
| A. | Ex interest |
| B. | Cum interest |
| C. | Co interest |
| D. | None of these. |
| Answer» B. Cum interest | |
| 174. |
The ..has a legal right of forfeiting the shares of those who fail to pay the amount due. |
| A. | Liquidator |
| B. | Company |
| C. | Government |
| D. | directors |
| Answer» B. Company | |
| 175. |
If the purchase price of debentures includes interest for the expired period, the quotation is said to be .. |
| A. | Ex interest |
| B. | Cum interest |
| C. | Co interest |
| D. | None of these |
| Answer» C. Co interest | |
| 176. |
If the purchase price of debentures includes interest for the expired period, the quotation is said to be .. |
| A. | Ex interest |
| B. | Cum interest |
| C. | Co interest |
| D. | None of these |
| Answer» C. Co interest | |
| 177. |
For the same purchase price profit on cancellation of debentures is more when purchase on basis. |
| A. | Ex Interest |
| B. | Cum Interest |
| C. | Own Debentures basis |
| D. | None of these. |
| Answer» C. Own Debentures basis | |
| 178. |
in case of a joint stock company is shown on the Asset side under heading of intangible assets |
| A. | Goodwill |
| B. | Plant & machinery |
| C. | Land |
| D. | Building |
| Answer» B. Plant & machinery | |
| 179. |
Uncliamed dividend is shown on the liability side of the under the heading current liabilities. |
| A. | Profit and loss account |
| B. | Income statement |
| C. | Revenue Account |
| D. | Balance sheet |
| Answer» E. | |
| 180. |
When the proposed dividend is more than 20 %, an amount equal to of the current profits must be transferred to reserve. |
| A. | 5% |
| B. | 7.5% |
| C. | 2.5% |
| D. | 10% |
| Answer» E. | |
| 181. |
After realizing all the investments, the balance in the sinking fund account is transferred to |
| A. | Profit and Loss A/c |
| B. | Debenture Account |
| C. | Sinking fund A/c |
| D. | Capital reserve |
| Answer» E. | |
| 182. |
The company earns a net profit of 24,000 with a capital of1,20,000. The NRR is 10%. Under capitalisation of super profit, goodwill will be ___________. |
| A. | 1,20,000 |
| B. | 70,000 |
| C. | 12,000 |
| D. | 24,000 |
| Answer» B. 70,000 | |
| 183. |
After all the debentures are redeemed; the balance in the sinking fund account is transferred to . |
| A. | Capital reserve |
| B. | General reserve |
| C. | Profit and loss account |
| D. | Capital redemption reserve. |
| Answer» C. Profit and loss account | |
| 184. |
When debentures are redeemed from out of profits an equal amount is transferred to account. |
| A. | Capital reserve |
| B. | Capital Redemption Reserve |
| C. | Debenture redemption reserve |
| D. | General Reserve. |
| Answer» D. General Reserve. | |
| 185. |
Which of the following is true about financial statements? I)Financial statement gives a summary of accounts. II) Financial statements can be stated as recorded facts. |
| A. | Only I |
| B. | Only II |
| C. | Both I andII |
| D. | None of the above |
| Answer» D. None of the above | |
| 186. |
Whether financial reviews by management, environment reports and value added financial statements are outside the scope of international financial reporting standards (IFRSs)? |
| A. | yes |
| B. | no |
| C. | not mentioned in ifrs |
| D. | still in consideration |
| Answer» B. no | |
| 187. |
When 4,000 equity shares of Rs.10 each is bought back at Rs.20 per share, the amount to be transferred to Capital Redemption Reserve is |
| A. | 80,000 |
| B. | 40,000 |
| C. | 4,000 |
| D. | none |
| Answer» C. 4,000 | |
| 188. |
Under Ind AS 2, fixed production overheads should be allocated to items of inventory on the basis of ____ production capacity. |
| A. | actual |
| B. | abnormal |
| C. | normal |
| D. | estimated |
| Answer» D. estimated | |
| 189. |
A liability which can be measured only by using a substantial degree of estimation is called . |
| A. | Contingent liabilities |
| B. | Contingent Assets |
| C. | Fixed Assets |
| D. | Non Current Liabilities |
| Answer» B. Contingent Assets | |
| 190. |
Unclaimed dividend is shown on the liability side of the balance sheet of a company as -- ------- |
| A. | Share capital |
| B. | current liabilities |
| C. | Reserves & Surplus |
| D. | non- current liability |
| Answer» C. Reserves & Surplus | |
| 191. |
The original amount of preference share capital should be transferred to ............ account in the time of amalgamation in the books of vendor co. |
| A. | Preference shareholders Account |
| B. | Capital Reserve Account |
| C. | Equity share capital Account |
| D. | Equity share capital Account |
| Answer» B. Capital Reserve Account | |
| 192. |
Grants related to depreciable assets should be recognised as ., in the period in which their depreciation is charged |
| A. | income |
| B. | appropriaton |
| C. | provisions |
| D. | none |
| Answer» B. appropriaton | |
| 193. |
The share capital, to the extent already held by the purchasing company, is closed by the vendor company by crediting it to: |
| A. | Share capital account |
| B. | Purchasing company's account |
| C. | Realisation account. |
| D. | none |
| Answer» D. none | |
| 194. |
Loss Prior to incorporation is treated as ........... Loss, and Vendor s Salaries are chargeable to ................ incorporation period. |
| A. | Pre |
| B. | During |
| C. | Post |
| D. | In between |
| Answer» D. In between | |