Description : Dividend can be paid generally out of– (A) share premium account (B) capital redemption reserve account (C) current year’s profits (D) All of these
Last Answer : Answer: current year’s profits
Description : Which audit is carried out during the accounting period with some interval, it is called– (A) periodic audit (B) partial audit (C) continuous audit (D) interim audit
Last Answer : Answer: continuous audit
Description : What does management audit imply ? (A) Complete audit (B) Detailed audit (C) Efficiency audit (D) Interim audit
Last Answer : Answer: Efficiency audit
Description : Articles of Association can be altered by passing– (A) An ordinary resolution in Annual General Meeting (B) A special resolution in Annual General Meeting (C) A resolution with special notice (D) Without any resolution
Last Answer : Answer: A special resolution in Annual General Meeting
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 : 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 : What is the quorum of General Meetings in the case of a Private Company ? (A) 2 members (B) 3 members (C) 4 members (D) 5 members
Last Answer : Answer: 2 members
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 : The following data, relates to manufacturing company for the year 2006-07- Net Profit as per P & L A/c-Rs. 2,40,000; Depreciation-Rs. 80,000; Goodwill written-off- Rs. 40,000, Profit on Sale of Fixed Assets-Rs. 16,000, ... ) Rs. 4,40,000 (B) Rs. 4,00,000 (C) Rs. 6,40,000 (D) None of the above
Last Answer : Answer: None of the above
Description : Ploughing-back of profits means– (A) Dividend declared but not claimed by shareholders (B) Non-declaration of dividend in any year (C) Profits earned from illegal sources and employed in business (D) Retaining the earnings of business for future expansion programme
Last Answer : Answer: Retaining the earnings of business for future expansion programme
Description : Share premium account can be used for– (A) Paying tax liability (B) Meeting the cost of issue of shares or debentures (C) Paying Dividend on shares (D) Meeting the loss on sale of old asset
Last Answer : Answer: Meeting the cost of issue of shares or debentures
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 : Minutes of the annual general meeting must be prepared and signed by the chairman within– (A) 14 days of the meeting (B) 21 days of the meeting (C) 30 days of the meeting (D) 45 days of the meeting
Last Answer : Answer: 30 days of the meeting
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 : The first auditor of a company appointed, holds office– (A) For a period of one year (B) For that period till new auditor is appointed (C) Till the conclusion of first Annual General Meeting (D) Till the holding of statutory meeting of the company
Last Answer : Answer: Till the conclusion of first Annual General Meeting
Description : Is it obvious or not obvious why some stores charge customers (annual for eg.) a fee in order to sell them their products?
Last Answer : I worked in a grocery store that was a Franchise and that company charges a fee to have the ideal placement on the shelves, or near the cash register , knowing that some people (or most) buy on impulse. That is why adverting of a product with colorful and eye catching themes becomes very important .
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 : On 1st April, 2013, Y Ltd. Issued 1000, 12% debentures of Rs. 100 each at a discount of 6%. These debentures are redeemable in five equal annual instalments at the end of each year. What is the amount of discount to be written off ... & L A/c ? (A) Rs. 2000 (B) Rs. 1800 (C) Rs. 1200 (D) Rs. 600
Last Answer : Answer: Rs. 1200
Description : Final accounts prepared in narrative style are in– (A) Horizontal form (B) Accounts form (C) Vertical form (D) None of the above
Last Answer : Answer: Vertical form
Description : XYZ Ltd. issued 10,000 shares of Rs. 100 each at Rs. 120 per share with Rs. 25 on application, Rs. 45 on allotment including premium, Rs. 20 on first call and Rs. 30 on final call. Govind who held 200 shares did not pay ... forfeiture ? (A) Rs. 14,000 (B) Rs. 10,000 (C) Rs. 9,000 (D) Rs. 4,000
Last Answer : Answer: Rs. 10,000
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 : 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 : What is the renewal fees paid for a patent right ? (A) Capital expenditure (B) Revenue expenditure (C) Deferred revenue expenditure (D) Development expenditure
Last Answer : Answer: Revenue expenditure
Description : What is Capital Redemption Reserve Account available for ? (A) Redemption of redeemable preference shares (B) Redemption of redeemable debentures (C) Reorganization of share capital (D) Issue of fully paid bonus shares
Last Answer : Answer: Issue of fully paid bonus shares
Description : Income and expenses for the year 2012 are- Fee Received in Cash - Rs.24,000 Accrued Fee - Rs.6,000 Rent for Chamber Paid - Rs.6,000 Outstanding Rent - Rs.2,000 Salary Paid to Staff - Rs.6,000 Miscellaneous Expenses Paid - Rs. ... basis ? (A) Rs. 11,800 (B) Rs. 13,200 (C) Rs. 16,800 (D) Rs. 30,000
Last Answer : Answer: Rs. 13,200
Description : X Limited forfeited Ram's 20 shares of Rs. 10 each on which Rs. 7 is called up. Ram had paid application and allotment money of Rs. 5 per share. Of these forfeited shares 15 shares were reissued to Hari as fully paid up ... to Capital Reserve account ? (A) Rs. 15 (B) Rs. 20 (C) Rs. 75 (D) Rs. 100
Last Answer : Answer: Rs. 15
Description : X Ltd. purchased a car from Maruti Udyog Ltd. for Rs. 5,00,000. As per agreement Rs. 80,000 was to be paid in cash and the balance by issue of shares of Rs. 10 each at a premium of Rs. 5 per share. How many ... . for the car ? (A) 30,000 shares (B) 29,000 shares (C) 28,500 shares (D) 28,000 shares
Last Answer : Answer: 28,000 shares
Description : As per Schedule VI of the Companies’ Act, 1956, Forfeited Share Account will be– (A) Added to paid up capital (B) Deducted from called up capital (C) Added to capital reserve (D) Shown as a revenue reserve
Last Answer : Answer: Deducted from called up capital
Description : The liability of the shareholders of a public limited company is limited to the extent of– (A) Par value of the share (B) Paid up value of the shares (C) Market price of the shares (D) Intrinsic value of the shares
Last Answer : Answer: Paid up value of the shares
Description : R. G. Ltd. purchased machinery from K.G. Company for a book value of Rs. 4,00,000. The consideration was paid by issue of 10%. Debenture of Rs. 100 each at a discount of 20%. The debenture account will be credited by– (A) Rs. 4,00,000 (B) Rs. 5,00,000 (C) Rs. 3,20,000 (D) Rs. 4,80,000
Last Answer : Answer: Rs. 4,00,000
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 : Donations received for the special purpose will be taken to the– (A) Income and Expenditure Account (B) Assets side of the Balance Sheet (C) Liabilities side of the Balance Sheet (D) Receipts and Payments Account
Last Answer : Answer: Liabilities side of the Balance Sheet
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 : ‘Object Clause’ of a Memorandum of Association can be altered by– (A) Ordinary resolution (B) Special resolution (C) Special resolution and confirmation by Registrar of Companies (D) Special resolution and confirmation by Company Law Board
Last Answer : Answer: Special resolution and confirmation by Company Law Board
Description : Articles of Association of a company can be altered by– (A) An ordinary resolution (B) A resolution with a special notice (C) A special resolution (D) None of the above
Last Answer : Answer: A special resolution
Description : A special resolution is passed in a company meeting by– (A) Simple majority (B) 2/3 majority (C) 3/4 majority (D) None of the above
Last Answer : Answer: 3/4 majority
Description : A large amount spent on special advertisement is– (A) Capital Expenditure (B) Revenue Expenditure (C) Revenue Loss (D) Deferred Revenue Expenditure
Last Answer : Answer: Deferred Revenue Expenditure
Description : A public corporation is set up– (A) By a Special Act of Parliament (B) By a special order of the Government (C) Under Indian Companies Act, 1956 (D) By none of the above
Last Answer : Answer: By a Special Act of Parliament
Description : Who is an Special agent?
Last Answer : Special agent is one who is appointed to undertake some special work Eg. Agent appointed to sell a car by its owner
Description : Which of the following matters would an auditor most likely consider when establishing the scope of the audit? a. Audit areas where there is a higher risk of material misstatement. ... status of audit work throughout the engagement and the expected deliverables resulting from the audit procedures.
Last Answer : The expected audit coverage, including the number and locations of the entity's components to be included.
Description : What should be the interval between two Annual General Meetings?
Last Answer : What should be the interval between two Annual General Meetings?
Description : i. A meeting of shareholders which is held once a year. ii. A meeting of shareholders is held between two annual general meetings.
Last Answer : Write a word or a term or a phrase that can substitute each of the following statement: i ... A meeting of the preference shareholders of a company.
Description : Select the correct option from the bracket: Group ‘A’ - (1) Interval between two Annual General Meetings
Last Answer : Select the correct option from the bracket: Group A' Group B' (1) Interval between two ... 15 months, within 30 days of company's Incorporation)
Description : Part of company‟s earning or profit which is paid out to share holders is known as _______ A. Premium B. Dividend C. Bonus D. Sum Assured E. Return
Last Answer : B. Dividend Explanation: A dividend is a payment made by a corporation to its shareholders, usually as a distribution of profits. When a corporation earns a profit or surplus, it can re-invest ... business (called retained earnings), and pay a fraction of the profit as a dividend to shareholders.
Description : If an investment of Rs. 42,000 in Rs. 300 shares of a company, paying a dividend of 7%, results in an annual income of Rs. 2100, then find the market
Last Answer : If an investment of Rs. 42,000 in Rs. 300 shares of a company, paying a dividend of 7%, results ... . 2100, then find the market value of each share.
Description : Find the annual income derived from an investment of Rs. 18,000 in Rs. 150 shares available at Rs. 180 of a company paying 11% dividend.
Last Answer : Find the annual income derived from an investment of Rs. 18,000 in Rs. 150 shares available at Rs. 180 of a company paying 11% dividend.
Description : The annual income derived from each Rs.200 share at a premium of Rs.30, paying `10%` dividend is Rs. ________.
Last Answer : The annual income derived from each Rs.200 share at a premium of Rs.30, paying `10%` dividend is Rs. ________.
Description : Rakesh invested Rs.27,000 in Rs.27 shares of a company which pays a dividend of `10%`. Find the market value of each share if he derives an annual inc
Last Answer : Rakesh invested Rs.27,000 in Rs.27 shares of a company which pays a dividend of `10%`. Find ... investment, also find the number of shares he bought.
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