Top 1000+ Solved Financial Accounting MCQ Questions Answer
Q. Debit the losses and expenses and credit the gain and income is applicable to ______
a. Personal account
b. Real account
c. Nominal account
d. Owners account
Q. Trade mark account is
a. Real account
b. Personal account
c. Nominal account
d. Non personal account
Q. 16. If the whole of the issue of shares or debentures is underwritten it is known as_______________________
a. partial underwriting
b. frim underwriting
c. sole underwriting
d. complete or fully underwriting
Q. 17. Buy Back must expenses may be treated as_________________
a. deffered revenue expenses
b. revenue expenses
c. revenue or deffered revenue expenses
d. capital expenses
Q. 18. On Amalgamation, Profit & Loss A/c (Dr.) balance of the vendor company is closed by___________
a. debit to profit & loss a/c
b. debit to equity shareholders a/c
c. credit to equity shareholders a/c
d. debit to realisation
Q. 19. The existing 1,000 shares of Rs. 100 each are altered to 10,000 shares of Rs.10 each. This is known as__________________
a. sub-division
b. surrender
c. conversion in stock
d. consolidation
Q. 20. If the remuneration to liquidator is payable as a percentage of collection_______________
a. exclude opening cash & bank balance
b. exclude opening cash & bank balance
c. includes opening cash & bank balance
d. exclude both opening & closing cash & bank balance
Q. 21. If a part of the issue of share or debenrues is underwritten, it is termed as__________________-
a. sole underwriting
b. firm underwriting
c. complete underwriting
d. partial underwriting
Q. 22. In case of Buy Back at a discount the amount of discount is transferred to _________________
a. capital reserve a/c
b. general reserve a/c
c. capital redemption reserve a/c
d. securities premium a/c
Q. 23. 'Pooling of interest' is a method of_____________________
a. charging depreciation
b. account of absorption
c. calculation of purchase consideration
d. accounting of amalgamtion
Q. 24. Fictitious Assets are to be transferred to ___________________
a. internal reconstruction
b. share capital
c. securities premium
d. capital reserve
Q. 25. The proceeds of assets not specifically pledged & nthe surplus of the assets specifically pledged is first available for_________________
a. preferential shareholders
b. legal charges, liquidators remuneration & expenses
c. unsecured creditors
d. preferential creditors
Q. The underwriting commission in the case of debentures as per Companies Act, should not exceed_________
a. 3% of the price at which the debentures are issued
b. 2.5% of the price at which debenture are issued
c. 5% of the price at which debentures are issued
d. 4% of the price at which debentures are issued
Q. Non-Monetary Items which are carried in terms of historical cost determinated in a foreign currency should be reporte using exchange rate at the date of _____
a. balance sheet
b. settlement
c. transaction
d. profit & loss a/c
Q. A feature which is common in all cases or merger__________________-
a. purchase of one comapany by another company
b. liquidation of at least two companies
c. liquidation at least one existing company & formation of another company
d. formation of at least one new company