Financial Account MCQ PDF For Online Exam | Mumbai University Exam MCQ
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. 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