Top 250+ Solved Financial Accounting 2 MCQ Questions Answer
Q. ________ means the price at which the goods can be purchased by the hirer for readycash.
a. hp price
b. installment price
c. cash price
d. down payment
Q. ________ is the initial payment made at the time of signing the hire purchase agreement
a. hp price
b. installment price
c. cash price
d. down payment
Q. The difference between hire purchase price and the cash price is called ______
a. hire charges
b. cost of the asset
c. installment price
d. cash price
Q. In order to deal with the re possession the hire vendor operates an account called _______
a. asset account
b. goods account
c. goods repossessed account
d. none of these
Q. Hire Purchase price =
a. cash price + down payment
b. cash price + total interest
c. cash price
d. sum of total instalments
Q. Cash Price =
a. hire purchase price – total interest
b. down payment in cash
c. down payment + interest
d. none of the above
Q. Which of the following statement is false:
a. a company is a legal entity quite distinct from its members
b. a company can buy its own share
c. a shareholder is the agent of the company
d. same person can agent and creditor of the company
Q. Which of the following are the characteristics of a company
a. liability of the members is limited up to the face value of shares held by them
b. it is a voluntary association of persons
c. a company is a separate body can sue and be sued in its own name
d. perpetual succession
Q. Share application and allotment account is a:
a. personal account
b. real account
c. nominal account
d. none of the above
Q. Securities premium account is shown on the liabilities side of the balance sheet under thehead:
a. share capital
b. reserves and surplus
c. current liabilities
d. non-current liabilities
Q. As per section 78 of the companies act, amount collected as premium on securities cannotbe utilized for:
a. issuing fully paid bonus shares to the members
b. purchase of fixed assets
c. writing off preliminary expenses
d. buy back of it’s own shares
Q. The portion of the authorised capital which can be called-up only on the liquidation of thecompany is called
a. authorised capital
b. reserve capital
c. issued capital
d. called up capital
Q. Which of the following statement is false:
a. buy back must be authorised by articles of company
b. a special resolution must be passed for buy back
c. shares can be partly paid up
d. the ratio of debt owed by the company is not more than twice the capital and its
Q. If shares are bought back out of free reserves then a sum equal to nominal value of theshares so bought back is transferred to:
a. capital reserve account
b. capital redemption reserve account (crr)
c. general reserve account
d. statutory reserve account
Q. Maximum buy back limit in any year is ______ of total paid up equity capital and freereserves.
a. 25%
b. 10%
c. 20%
d. no limit