Top 150+ Solved Practical Auditing MCQ Questions Answer
Q. Interest on calls paid in advance, according to Table A, should not exceed
a. 6%
b. 5%
c. 10%
d. 14%
Q. A company can accept calls in advance from its shareholders under section
a. 82
b. 79
c. 92
d. 78
Q. Shares can be issued at discount only after
a. 2 years of the commencement of the business
b. 1 year of the commencement of the business
c. 3 years of the commencement of the business
d. 5 years of the commencement of the business
Q. With regard to issue of share warrants to the bearers, the auditor should see that is it
a. Permitted by Memorandum of Association
b. Sanctioned by the Central Government
c. Permitted by the Board of Directors
d. None of the above
Q. For the for festure of shares, the auditor should check that it is permitted
a. by Memorandum of Association
b. by articles of association
c. under Companies Act, 1956
d. None of the above
Q. Premium received on issue of shares, later forfeited, should be transferred to
a. Capital reserve
b. Shares forfeited Account
c. Capital Account
d. None of the above
Q. With regard to issue of share certificates, the auditor should refer to section
a. 110
b. 113
c. 114
d. 123
Q. Increase in share capital is permitted by
a. Memorandum of Association
b. Articles of association
c. Court
d. Companies Act, 1956
Q. Divisible profit should not include
a. Interest on capital
b. Capital
c. Depreciation
d. None of the above
Q. Dividend can not be paid out of
a. Capital profit
b. Capital receipts
c. Revenue receipts
d. None of the above
Q. Capital profit imply profit earned
a. Through business transaction
b. From capital
c. From sale of fixed assets
d. From sale of current assets
Q. Capital profits
a. Can be paid by way of dividends
b. Cannot paid by way of dividends
c. Can be paid by way of dividend under certain conditions
d. None of the above
Q. If there is capital loss, the auditor should
a. Not allow payment of dividend
b. Allow payment of dividends
c. Allow payment of dividends after making such losses good
d. None of the above