Top 550+ Solved Corporate Accounting MCQ Questions Answer
Q. ……..should be deducted from the share capital to determine the paid up capital.
a. Security premium
b. Calls in advance
c. Calls in arrears
d. Discount on issue
Q. The share capital account is debited with …………while forfeiting shares
a. Calls in arrears
b. Paid up capital
c. Called capital
d. Issued capital
Q. Discount or loss on issue of debenture is shown in the balance sheet under the head ……..
a. Reserves & Surplus
b. Secured loans
c. Current liabilities
d. Miscellaneous expenditure
Q. When preference shares are redeemed, it amounts to
a. increase in share capital
b. decrease in share capital
c. Both A and B
d. none
Q. Capital redemption reserve is created….
a. out of security premium
b. to meet legal requirements
c. Voluntarily
d. none
Q. Under Double account system, the balance sheet is prepared in ……parts
a. three
b. two
c. one
d. none
Q. Which of the following is not a component of cost of an asset?
a. purchase price
b. refundable sales tax
c. import duties
d. estimate of compulsory future dismantling costs
Q. When an item of property, plant and equipment is revalued, what should be revalued?
a. a selection of assets decided by management
b. a selection of assets picked at random
c. the whole class of assets to which it belongs
d. the individual asset
Q. Which of the following is not an asset that falls under the scope of Ind AS 16?
a. assets held for sale in the normal course of business
b. tangible assets
c. assets expected to be used for more than one period
d. assets held for the production or supply of goods or services
Q. How should an asset be initially recognised in the financial statements?
a. measure at market value
b. measure at cost
c. measure at net realisable value
d. measure at fair value
Q. Where is the amortisation of an intangible asset recognised?
a. equity
b. profit or loss
c. statement of financial position
d. statement of cash flows
Q. Which of the following is not a requirement to capitalise development costs under Ind AS 38Intangible Assets?
a. the commercial feasibility for the asset may be uncertain
b. it must be technically feasible
c. the entity intends to sell the completed intangible asset
d. the entity can demonstrate how the asset will generate future economic benefits