Description : Which of the following is not true of a letter of credit? A. it is a document B. issued by a bank C. at the request of the exporter D. the bank agrees to honor a draft drawn on the importer E. payable in the designated currency
Last Answer : C. at the request of the exporter
Description : Government grants related to income as per the Accounting Standard (AS)-12 should be- (A) Presented as a credit in the statement of Profit and Loss (B) Presented as a deferred income on the asset ... of balance sheet (D) Presented both in the Profit and Loss statement and in the balance sheet
Last Answer : Answer: Presented both in the Profit and Loss statement and in the balance sheet
Description : Which of the following is not necessarily a party to a forfaiting transaction? A. exporter B. importer C. broker D. bank E. forfaiter
Last Answer : C. broker
Description : A commercial invoice is issued by _____. A. exporter B. exporter's bank C. importer D. importer's bank E. confirming bank
Last Answer : A. exporter
Description : Which of the following is not a basic objective of documentation in foreign trade? A. to assure that the exporter will receive the payment B. to assure that the importer will receive the goods C. to eliminate risk of noncompletion D. to reduce foreign exchange risk E. none of the above
Last Answer : E. none of the above
Description : Which statement about the US economy is wrong? (A) The US has a capitalist mixed economy. (B) The US national debt is the world's largest. (C) The US economy is shaped by the country's ... infrastructure, and high productivity. (D) The USA is the largest exporter and importer of goods in the world.
Last Answer : (D) The USA is the largest exporter and importer of goods in the world.
Description : Export procedure begins with– (A) Indent (B) Shipping order (C) Marine insurance (D) None of these
Last Answer : Answer: Indent
Description : Who is a Shipping broker?
Last Answer : They are brokers who transact business connected with ship. They arrange charter parties, procure cargo etc., on the behalf of their principles.
Description : If an exporter is doubtful about an issuing bank's ability to pay, he will expect a domestic bank to join the transaction in a _____ letter of credit. A. revolving B. irrevocable C. revocable D. unconfirmed E. confirmed
Last Answer : E. confirmed
Description : Principle of ‘Unity of Command’ means– (A) Unity of directions (B) To receive orders from one officer only (C) A fixed place for every person (D) Proper delegation to subordinates
Last Answer : Answer: To receive orders from one officer only
Description : X Ltd. forfeited 20 shares of Rs. 10 each on which Rs. 6 per share were paid. If out of these shares, 8 shares were reissued to Ram as fully paid up on payment of Rs. 5 50 per share, the amount that will remain standing ... Share Forfeited A/c will be- (A) Rs. 48 (B) Rs. 72 (C) Rs. 84 (D) Rs. 120
Last Answer : Answer: Rs. 120
Description : Which one of the following transactions changes the current ratio ? (A) Purchase of goods for cash (B) Plant acquired on account (C) Sold goods on credit (D) Debentures converted into equity capital
Last Answer : Answer: Plant acquired on account
Description : What is Qualitative credit control?
Last Answer : Qualitative credit controls are used when it wants to control the use of funds made available by the commercial banks to customers
Description : What is Quantitative credit control?
Last Answer : Quantitative credit controls are used when it wants to control the total supply of money
Description : A document issued by a vendor giving credit to the debtor is called:
Last Answer : Credit note
Description : Which one of the following securities cannot be issued by a Public Limited Company in India ? (A) Participating preference shares (B) Redeemable preference shares (C) Deferred shares (D) Debentures.
Last Answer : Answer: Deferred shares
Description : Any person aggrieved by any decision or order of the National Company Law Appellate Tribunal can appeal to which one of the following and within how much period ? (A) High Court, within 30 days (B) ... Court within 60 days (C) SEBI within 90 days (D) Department of Companies Affairs within 60 days
Last Answer : Answer: Supreme Court within 60 days
Description : A company forfeited 30 equity shares of Rs. 10 each fully called-up, for non-payment of allotment money of Rs. 3 and call-money of Rs. 4 per share. If these shares are reissued at Rs. 8 per share fully paid, the amount ... to capital reserve will be- (A) Rs. 300 (B) Rs. 60 (C) Rs. 90 (D) Rs. 30
Last Answer : Answer: Rs. 30
Description : A company can forfeit shares if the– (A) shareholder fails to pay the amount of the call during the stipulated time (B) shareholder pays calls in advance (C) shareholder does not pay the application money (D) shares have been issued at par
Last Answer : Answer: shareholder fails to pay the amount of the call during the stipulated time
Description : Alfa Company Limited acquired the business of M/s Bharat Traders. The valuation of the items acquired was-building Rs. 1,20,000; machinery Rs. 80,000 and stock-in-trade Rs. 30,000. The company issued in lieu of the above items 800, ... ) Rs. 2,30,000 (B) Rs. 1,00,000 (C) Rs. 50,000 (D) Rs. 30,000
Last Answer : Answer: Rs. 30,000
Description : A limited company makes a net profit of Rs. 2,00,000 after writing off preliminary expenses amounting to Rs. 20,000 and providing for depreciation on assets amounting to Rs. 40,000 and gain of Rs. 10,000 on sale of a piece of ... 2,00,000 (B) Rs. 2,40,000 (C) Rs. 2,50,000 (D) Rs. 2,60,000
Last Answer : Answer: Rs. 2,50,000
Description : What is the quorum of general meetings in the case of private limited company and public limited company ? (A) 2 members and 5 members respectively (B) 3 members and 5 members respectively (C) 5 members in each type of company (D) 5 members and 7 members respectively
Last Answer : Answer: 2 members and 5 members respectively
Description : Convening meetings of a company is the responsibility of the– (A) Chairman, Board of Directors (B) Managing Director (C) Company Secretary (D) General Manager
Last Answer : Answer: Company Secretary
Description : Appointment of a Company Secretary is made by– (A) Promoters (B) Board of Directors (C) Debenture holders (D) Government
Last Answer : Answer: Board of Directors
Description : Who can be appointed as a Company Secretary under the Companies Act, 1956 ? (A) An individual (B) A partnership firm (C) A company (D) None of the above
Last Answer : Answer: An individual
Description : Under Section 275 of the Companies’ Act, 1956 a person can become director in public company of not more than– (A) 5 companies (B) 10 companies (C) 15 companies (D) 20 companies
Last Answer : Answer: 15 companies
Description : Internal activity of a company is going to be performed according to established regulations. This assumption is provided as a right by– (A) Doctrine of Indoor Management (B) Doctrine of Constructive Notice (C) Doctrine of Ultravires (D) Doctrine of Intravires
Last Answer : Answer: Doctrine of Indoor Management
Description : Share Premium received by a Company may be used for– (A) Payment of dividend (B) Payment of remuneration to management (C) Issue of Bonus shares (D) None of these
Last Answer : Answer: Issue of Bonus shares
Description : Liability of a Company Secretary is– (A) Contractual only (B) Statutory only (C) Civil only (D) Both contractual and statutory
Last Answer : Answer: Both contractual and statutory
Description : Disinvestment of shares means– (A) To sale the shares of private company to public (B) To sale the shares of public company to the public (C) To sale the shares of Government company to the public (D) To sale of shares by holding company to its subsidiary company
Last Answer : Answer: To sale the shares of public company to the public
Description : A public company can start its business operations after getting– (A) Certificate of Incorporation (B) Minimum Subscription (C) Certificate of Commencement of Business (D) Permission of the Controller of Capital Issue
Last Answer : Answer: Certificate of Commencement of Business
Description : Reserve Bank of India is a– (A) Government Company (B) Departmental Organisation (C) Statutory Corporation (D) None of the above
Last Answer : Answer: Government Company
Description : Which one of the following statements about preparation of financial statements of a limited liability company is correct ? (A) Financial statements should be prepared according to the cash basis ... Financial statements should be prepared according to both the accrual and cash basis of accounting
Last Answer : Answer: Financial statements should be prepared according to the accrual basis of accounting only
Description : Appointment of full time Company Secretary is compulsory in all those companies, whose paidup share capital is– (A) Rs. 50 lakhs or more (B) Rs. 1 crore or more (C) Rs. 2 crores or more (D) Rs. 3 crores of more
Last Answer : Answer: Rs. 2 crores or more
Description : The first Secretary of the company is appointed by– (A) Shareholders (B) Promoters (C) Government (D) Directors
Last Answer : Answer: Promoters
Description : “The position of a Company Secretary is like that of a hub in a bicycle wheel.” This statement shows the– (A) Importance of Company Secretary (B) Rights of Company Secretary (C) Duties of Company Secretary (D) Liabilities of Company Secretary
Last Answer : Answer: Importance of Company Secretary
Description : An annual general meeting may be called after giving shorter notice instead of 21 clear days, if consent is accorded by– (A) All the directors of company (B) All the members entitled to vote there at (C) Majority of members entitled to vote there all (D) None of the above
Last Answer : Answer: All the members entitled to vote there at
Description : Appointment of a person who is a Director, as a Secretary in the Company would require approval of the company by– (A) Special Resolution (B) Ordinary Resolution (C) Resolution by circulation (D) None of the above
Last Answer : Answer: Special Resolution
Description : A meeting of the shareholders held only once during the life time of the company is known as– (A) Meeting of the Directors (B) Meeting of the Creditors (C) Extraordinary General Meeting (D) Statutory Meeting
Last Answer : Answer: Statutory Meeting
Description : The minimum and maximum number of members in a Private Company is– (A) 2 and 50 (B) 2 and 20 (C) 2 and 10 (D) None of the above
Last Answer : Answer: 2 and 50
Description : The gap between two General Meetings of the Company should not be more than– (A) 12 months (B) 18 months (C) 15 months (D) 20 months
Last Answer : Answer: 15 months
Description : In a Private Company there are restrictions regarding– (A) Transfer of shares (B) Issue of prospectus (C) Number of members (D) All of the above
Last Answer : Answer: All of the above
Description : The profit of a company (whose capital is divided into 25‚000 shares of Rs. 10 each) for the last three years are : Rs. 50‚000; Rs. 60‚000 and Rs. 40‚000. The fair return on investment is taken at 10% p.a. The value of company’s share will be– (A) Rs. 10 (B) Rs. 20 (C) Rs. 30 (D) Rs. 40
Last Answer : Answer: Rs. 20
Description : In case of a company, “Buy Back” is related to– (A) Prospectus (B) Shares (C) Debentures (D) Cheques
Last Answer : Answer: Shares
Description : The Secretary of a Company should file copies of Special Resolution passed at Extraordinary General Meeting to the Registrar of Companies within– (A) 7 days (B) 14 days (C) 21 days (D) 30 days
Last Answer : Answer: 30 days
Description : Which among the following documents defines the relationship between a company and outsiders ? (A) Memorandum of Association (B) Articles of Association (C) Prospectus (D) None of the above
Last Answer : Answer: Memorandum of Association
Description : What is the maximum limit of remuneration for a whole time manager in a company ? (A) 3% of net annual profit (B) 5% of net annual profit (C) 7% of net annual profit (D) None of the above
Last Answer : Answer: 5% of net annual profit
Description : The portion of share capital which can be called up only on the winding up of a company is known as– (A) Called up capital (B) Paid up capital (C) Authorised capital (D) Reserve capital
Last Answer : Answer: Reserve capital
Description : The object of ‘Agenda’ is to inform– (A) About the profitability and activity (B) About the progress of company (C) About the matter in sequence to be discussed in the meeting (D) About the routine matters
Last Answer : Answer: About the matter in sequence to be discussed in the meeting
Description : In order to reduce the risk of heavy insurance the insurer passes on some business to the other company, it is called– (A) Reinsurance (B) Double Insurance (C) Joint Insurance Policy (D) Separate Insurance
Last Answer : Answer: Reinsurance