Top 550+ Solved Corporate Accounting MCQ Questions Answer

From 211 to 225 of 596

Q. The accounting concept that is principally used to classify leases intooperating and finance is…….

a. substance over from

b. prudence

c. neutrality

d. completeness

  • a. substance over from

Q. Buy back of equity shares is a process of capital ……..

a. reduction

b. restructuring

c. control

d. none

  • b. restructuring

Q. Assets are NPAs for a period exceeding 12 months are called ………….

a. Standard Assets

b. Substandard Assets

c. Doubtful Assets

d. Loss Assets

  • c. Doubtful Assets

Q. The buy back of shares is also known as ……..

a. corporate redemption

b. corporate equity repurchase

c. corporate equity valuation

d. none

  • b. corporate equity repurchase

Q. The buy back of shares may be done

a. at par

b. at discount

c. at premium

d. all the above

  • d. all the above

Q. Interest on debenture is ….

a. adjustment of profit

b. appropriation of profit

c. charge on profit

d. none

  • c. charge on profit

Q. After all the debentures are redeemed the balance in the sinking fund is transferred to

a. General reserve

b. statutory reserve

c. both A and B

d. none

  • a. General reserve

Q. Debenture is document which creates a……

a. debt

b. credit

c. both A and B

d. none

  • a. debt

Q. When own debentures are cancelled, any profit on cancellation is transferredto

a. general reserve

b. capital reserve

c. p&laccount

d. none

  • b. capital reserve

Q. Profit not available for dividend includes

a. CRR

b. P&L account credit balance

c. security premium

d. None

  • b. P&L account credit balance

Q. All the …… profits are not available for the purpose of redemption ofpreference shares

a. revenue

b. capital

c. Both A and B

d. none

  • b. capital

Q. The principle of subrogation is applicable to……………

a. Fire Insurance

b. Marine Insurance

c. Burglary Insurance

d. All of thes

  • d. All of thes

Q. The shares firstly offered to the existing shareholders are called as …………

a. Right shares

b. Bonus shares

c. Ordinary shares

d. None of these

  • a. Right shares

Q. The security premium account is shown in the balance sheetunder the head……….

a. Share capital

b. Reserves & Surplus

c. Secured loans

d. Current liabilit

  • b. Reserves & Surplus
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