Q.1.Obey certain ethical rules no matter what
the results are
A.   Ethical
relativism
B.   Ethical
absolutism
C.   Deontological
ethics
D.   Teleological
ethic
ANS: A
 
Q.2.Equity shares can be bought back
A.   Out of
profits only
B.   Out of
proceeds of fresh issue only
C.   Out of
capital profit only
D.   Its
free reserves; or the securities premium account; or the proceeds of shares
ANS: D
 
Q.3.Ethics Knowledge is the focus of the __
stage in Ethics Education
A.   1st
B.   2nd
C.   3rd
D.   4th
ANS: A
 
Q.4.whistle blowing is a
A.   Threat
to compliance with a fundamental principle
B.   Fundamental
principle
C.   Safeguard
against threat to compliance with a fundamental principle
D.   Safeguard
in the work environment
ANS: C
 
Q.5.Interest is always calculated on the
A.   Market
Value of the security
B.   Nominal
Value of the security
C.   Book
value of the security
D.   Weighted
Average Cost of the security
ANS: A
 
Q.6.Interest on bonds accrues
A.   On the
last day of the financial year
B.   On due
dates fixed in advance
C.   On the
date fixed by board resolution
D.   As
declared by the company in the beginning of every financial year
ANS: A
 
Q.7.Dividend on shares accrues
A.   On the
last day of the financial year
B.   On due
dates fixed in advance
C.   In the
date it is declared
D.   On the
first day of the financial year
ANS: A
 
Q. 8. The current investments are valued on
closing date at
A.   Market
value
B.   Cost
of purchase
C.   Lower
of cost and market value
D.   Higher
of cost and fair value
ANS: C
 
Q.9.The cost of Right shares is
A.   Added
to the cost of investments
B.   Subtracted
from the cost of investments
C.   No
treatment is required
D.   Fair
Value
ANS: A
 
Q.10.A Company can buy-back
A.   Equity
shares
B.   Preferences
Shares
C.   Both
of the above
D.   Bonus
issue
ANS: C
 
Q.11.Which of the following is not a ‘free
reserve’ for the purpose of buyback of shares?
A.   Profit
& Loss Account
B.   General
Reserve
C.   Dividend
Equalization Reserve
D.   Revaluation
Reserve
ANS: C
 
Q.12.Buy-back of equity shares in any financial
year shall not exceed 25% of its
A.   Total
paid-up equity capital in that financial year
B.   Total
paid-up capital
C.   Total
paid-up equity capital and free reserves of the company
D.   Total
nominal capital and free reserves of the company
ANS: A
 
Q.13.A scheme of reconstruction involving ____
must be authorized by the Memorandum or Articles of Association, approved by
the Board and a special resolution of the conferenced members.
A.   Reduction
of Shared Capital
B.   Alteration
of Share Capital
C.   Variation
of Shareholders’ Right
D.   Compromise
/ Arrangement
ANS: B
 
Q.14.Surrender of fully paid shares amounts to
A.   Reduction
of Share capital
B.   Alteration
of Share Capital
C.   Variation
of Shareholders’ Right
D.   Compromise
/ Arrangement
ANS: D
 
Q.15.Following is an example of an accounting
policy
A.   Accrual
B.   Consistency
C.   Going
concern
D.   Depreciation
ANS: D
 
Q.16.The following factor should be considered
while selecting and applying accounting policies
A.   Going
Concern
B.   Growth
of business
C.   Substance
over form
D.   Solvency
ANS: C
 
Q.17.Dividend on shares accrues
A.   On the
last day of the financial year
B.   On due
dates fixed in advance
C.   In the
date it is declared
D.   On the
first day of the financial year
ANS: C
 
Q.18.Any reduction to market value of current
investment from cost, on valuation date is debited to
A.   Revaluation
reserve
B.   Profit
and loss account
C.   Capital
reserve
D.   General
reserve
ANS: C
 
Q.19.The cost of Right shares is
A.   Added
to the cost of investments
B.   Subtracted
from the cost of investments
C.   No
treatment is required
D.   Fair
Value
ANS: A
 
Q.20.Increase, consolidation or sub-division of
share capital of the company involves
A.   Alteration
of Shares Capital
B.   Variations
of Shareholders’ Rights
C.   Reduction
of Share Capital
D.   Compromise
/ Arrangement
ANS: A
 
Q.21.In Internal Reconstruction
A.   No
Company is liquidated
B.   Only
one company goes into liquidation
C.   Two or
more companies are liquidated
D.   One or
more companies go into liquidation
ANS: A
 
Q.22.The credit balance in capital reduction
a/c is utilized for
A.   Paying
off dissentient shareholders
B.   Writing
off deferred expenses
C.   Issuing
bonus shares
D.   Conversion
in Stock
ANS: C
 
Q.23.Dividends are usually paid on
A.   Authorized
capital
B.   Issued
capital
C.   Paid
up capital
D.   Reserve
capital
ANS: C
 
Q.24.Which of the following is not classified
as inventory in the financial statements?
A.   Finished
goods
B.   Work-in
progress
C.   Stores
and spares
D.   Advance
payment made to suppliers for raw materials
ANS: D
 
Q.25.The following Factor should be considered
while selecting and applying accounting policies
A.   Consistency
B.   Prudence
C.   Dual
Aspect
D.   Cost
ANS: B