Question 1

If the purchase price of debentures includes interest for the expired period, the quotation is said to be &#8230;&#8230;&#8230;&#8230;..&#10;A)Ex?interest&#10;B)Cum?interest&#10;C)Co?interest&#10;D)None of these

Accepted Answer

When the purchase price of debentures includes interest for the expired period, the quotation is said to be "Cum-interest." This means the buyer compensates the seller for the interest accrued up to the purchase date.

Question 2

If the purchase price of debentures excluding interest for the expired period, the quotation is said to be &#8230;&#8230;&#8230;&#8230;..&#10;A)Ex?interest&#10;B)Cum?interest&#10;C)Co?interest&#10;D)None of these.

Accepted Answer

When the purchase price of debentures is quoted excluding the interest for the expired period, the quotation is referred to as "Ex-interest." This means the buyer does not pay for the accrued interest; instead, the seller retains the right to the interest payment for the period.

Question 3

As per &#8230;&#8230;&#8230;..it is the statutory obligation of companies to prepare their final accounts.&#10;A)Sec 210&#10;B)Sec 211&#10;C)Sec 212&#10;D)Sec 214

Accepted Answer

Section 210 of the Companies Act mandates companies to prepare their final accounts annually.

Question 4

The Balance sheet of Companies are prepare in the form &#8230;&#8230;&#8230;.&#10;A)Part I of Schedule V&#10;B)Part I of Schedule VI&#10;C)Part II of Schedule V&#10;D)Part II of Schedule VI

Accepted Answer

The balance sheet of companies is prepared in the form of Part I of Schedule VI according to the Companies Act. This schedule specifies the format and requirements for the presentation of financial statements for companies to ensure uniformity and comparability.

Question 5

The dividend declared between two annual general meeting is called &#8230;&#8230;&#8230;.&#10;A)Proposed Dividend&#10;B)Final Dividend&#10;C)Interim Dividend&#10;D)None of these

Accepted Answer

Interim Dividend is declared and paid by a company's board of directors between two annual general meetings, typically when the company has surplus profits and wants to distribute them to its shareholders before the fiscal year ends.

Question 6

The dividend recommended by the Board of Directors is called&#8230;&#8230;&#8230;&#10;A)Proposed Dividend&#10;B)Final Dividend&#10;C)Interim Dividend&#10;D)None of these

Accepted Answer

The dividend recommended by the Board of Directors is called the Proposed Dividend.

Question 7

Unclaimed dividend is shown in the balance sheet under the head &#8230;&#8230;..&#10;A)Reserves and Surplus&#10;B)Current Liabilities&#10;C)Loans and Advances&#10;D)Current Assets

Accepted Answer

Unclaimed dividends are considered a liability for the company until they are claimed by the shareholders. Therefore, they are shown under the head "Current Liabilities" in the balance sheet.

Question 8

. &#8230;&#8230;..is a charge against profit of the company&#10;A)Provision&#10;B)Reserves&#10;C)Surplus&#10;D)All of these

Accepted Answer

Provisions are charges against a company's profits, as they are amounts set aside to cover future liabilities or decreases in the value of assets, not yet certain in amount or timing. Reserves are portions of earnings set aside for specific purposes or as a safeguard against future losses, and surplus refers to the amount remaining after all expenses and distributions are made, which is not directly a charge against profits.

Question 9

An item which may or may not be the liability of the company due to happening of certain event is&#8230;&#8230;&#8230;&#8230;&#10;A)Current Liability&#10;B)Fixed Liability&#10;C)Contingent Liability&#10;D)None of these

Accepted Answer

Contingent liabilities are potential liabilities that may or may not become actual liabilities, depending on the outcome of a future event.

Question 10

Advance tax paid is shown in the balance sheet under the head&#8230;&#8230;&#8230;.&#10;A)Current Liabilities&#10;B)Loans and Advances&#10;C)Fixed Assets&#10;D)None of these

Accepted Answer

Advance tax paid is considered a prepaid expense and is shown under the head "Loans and Advances" in the assets side of the balance sheet, as it represents an amount paid in advance for taxes and is recoverable in the future.

Question 11

Preliminary expenses not written off are shown in the balance sheet under the head&#8230;&#10;A)Current Assets&#10;B)Investments&#10;C)Current Liabilities&#10;D)Miscellaneous Expenditure

Accepted Answer

The answer of Preliminary expenses not written off are shown...

Question 12

Which of the following is not a statutory reserve?&#10;A)General reserve&#10;B)Development rebate reserve&#10;C)Investment allowance reserve&#10;D)Workmen compensation fund

Accepted Answer

The answer of Which of the following is not a...

Question 13

Realisation Account is a &#8230;&#8230;&#8230;&#8230;..&#10;A)Real Account&#10;B)Personal Account&#10;C)Nominal Account&#10;D)Suspense Account

Accepted Answer

The answer of Realisation Account is a &#8230;&#8230;&#8230;&#8230;..&#10;A)Real Account&#10;B)Personal Account&#10;C)Nominal...

Question 14

Trade liabilities include &#8230;&#8230;&#8230;..&#10;A)Creditors&#10;B)Debentures&#10;C)Bank overdraft&#10;D)All of these

Accepted Answer

The answer of Trade liabilities include &#8230;&#8230;&#8230;..&#10;A)Creditors&#10;B)Debentures&#10;C)Bank overdraft&#10;D)All of these...

Question 15

. &#8230;&#8230;..is called a factory of credit.&#10;A)Company&#10;B)Firm&#10;C)Bank&#10;D)None of these

Accepted Answer

The answer of . &#8230;&#8230;..is called a factory of credit.&#10;A)Company&#10;B)Firm&#10;C)Bank&#10;D)None...

Question 16

Banking companies are governed in India by &#8230;&#8230;&#8230;.&#10;A)Banking Regulation Act&#10;B)Indian Companies Act&#10;C)Reserve Bank of India Act&#10;D)All of these

Accepted Answer

The answer of Banking companies are governed in India by...

Question 17

CRR stands for &#8230;&#8230;&#8230;&#8230;&#10;A)Current Reserve Ratio&#10;B)Capital Reserve Ratio&#10;C)Cash Reserve Ratio&#10;D)Capital Redemption Ratio

Accepted Answer

The answer of CRR stands for &#8230;&#8230;&#8230;&#8230;&#10;A)Current Reserve Ratio&#10;B)Capital Reserve...

Question 18

SLR stands for &#8230;&#8230;&#8230;&#8230;&#8230;&#10;A)Savings Level Ratio&#10;B)Statutory Liquidity Ratio&#10;C)Standard Liquidity Ratio&#10;D)None of these

Accepted Answer

The answer of SLR stands for &#8230;&#8230;&#8230;&#8230;&#8230;&#10;A)Savings Level Ratio&#10;B)Statutory Liquidity...

Question 19

The method of rapidly posting entries in the books of banks is called as &#8230;&#8230;&#8230;.&#10;A)Single Entry&#10;B)Cash Method&#10;C)Slip System&#10;D)None of these

Accepted Answer

The answer of The method of rapidly posting entries in...

Question 20

The P&L A/c of Banking Companies are prepared as per &#8230;&#8230;&#8230;of Banking Regulation Act.&#10;A)Form A of Schedule III&#10;B)Form B of Schedule III&#10;C)Form A of Schedule VI&#10;D)Form B of Schedule VI

Accepted Answer

The answer of The P&L A/c of Banking Companies are...

Question 21

. &#8230;&#8230;.of profit is transferred to statutory reserves.&#10;A)10%&#10;B)20%&#10;C)25%&#10;D)30%

Accepted Answer

The answer of . &#8230;&#8230;.of profit is transferred to statutory...

Question 22

Banks show the provision for income tax under the head &#8230;&#8230;&#8230;.&#10;A)Contingent liabilities&#10;B)Deposits&#10;C)Other liabilities and provisions&#10;D)Borrowings

Accepted Answer

The answer of Banks show the provision for income tax...

Question 23

Rebate on bills discounted is &#8230;&#8230;&#8230;..&#10;A)An income accrued but not received&#10;B)A liability&#10;C)An expense&#10;D)Income received in advance

Accepted Answer

The answer of Rebate on bills discounted is &#8230;&#8230;&#8230;..&#10;A)An income...

Question 24

Schedule 1 is concerned with &#8230;&#8230;&#8230;&#8230;.&#10;A)Cash and balance with RBI&#10;B)Capital&#10;C)Reserves and Surplus&#10;D)Investments

Accepted Answer

The answer of Schedule 1 is concerned with &#8230;&#8230;&#8230;&#8230;.&#10;A)Cash and...

Deck 17: Financial Accounting and Banking