Corporate Accounting MCQs
UKPSC Assistant Accountant Exam
Total Marks in this Section: 6 Marks
In this Post You will get Corporate Accounting MCQS for UKPSC Assistant Accountant Exam. This UKPSC Assistant Accountant exam is conducted every year by Uttarakhand Government.
This Exam is conducted into two medium – Hindi Medium and English Medium.
Hindi Medium exam is known as UKPSC Sahayak Accountant Exam and English Medium Exam is know as UKPSC Assistant Accountant Exam.
Question Paper Consists of Two Parts – Section A (Commerce and Management) and Section B – Hindi. Section A Consists of 80 Questions and Section B Consists of 20 Questions.
Corporate Accounting MCQs is the First Part of Section which covers 06 Marks. We preparing UKPSC Assistant Accountant Exam Notes. We keep our posts updated, so visit our webiste frequently.
Choose the correct answer to the following questions from the given alternatives:
1) Share allotment Account is
a) Personal.
b) Real.
c) Nominal.
Ans: a) Personal.
2) Public Ltd companies cannot issue
a) Sweet Equity Shares.
b) Deferred Shares.
c) Preference shares.
Ans: b) Deferred Shares.
3) Debenture Holders are the
a) Owner of the company.
b) Members of the company.
c) Creditors of the company.
Ans: c) Creditors of the company.
4) Internal reconstruction means
a) Amalgamation in nature of merger.
b) Absorption.
c) Capital Reduction.
Ans: c) Capital Reduction.
5) Maximum permitted capital of the company is known as:
a) Authorised capital.
b) Issued capital.
c) Subscribed capital.
d) Called of capital.
Ans: a) Authorised capital.
6) Equity shareholders and preference shareholders are:
a) Members OR owners.
b) Creditors.
c) Customers of the company.
d) Lenders
Ans: a) Members OR owners.
7) The portion of the authorised capital which can be called-up only on the liquidation of the company is called:
a) Authorised capital.
b) Reserve capital.
c) Issued capital.
d) Called up capital.
Ans: b) Reserve capital.
8) Balance of shares forfeited account after reissue is transferred to:
a) Reserve Fund.
b) Profit & Loss Account.
c) Share Capital Account.
d) Capital Reserve account
Ans: d) Capital Reserve account
9) The maximum allowable discount on Equity shares is
a) 10%.
b) 8%.
c) 5%.
Ans: a) 10%.
10) Dividend is usually paid on
a) Called-up-capital.
b) Nominal capital.
c) Paid-up-capital.
Ans: c) Paid-up-capital.
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11) As per the SEBI’s guidelines the minimum application money shall not be less than
a) 25% of issue price.
b) 10% of the issue price.
c) 6% of the issue price.
Ans: a) 25% of issue price.
12) Consolidated Financial Statements are prepared as per Accounting Standard
a) 19.
b) 21.
c) 23.
Ans: b) 21.
13) Premium on redemption of debenture account is:
a) A real Account.
b) A nominal Account.
c) A personal Account.
Ans: b) A nominal Account.
14) A share represents
a) An interest in the company.
b) Assets of the company.
c) Liabilities of the company.
Ans: a) An interest in the company.
15) Interest on calls in arrear should not exceed
a) 10%.
b) 6%.
c) 7%.
d) 12%.
Ans: a) 10%.
16) Interest on calls in advance should not exceed
a) 10%.
b) 6%.
c) 7%.
d) 12%.
Ans: d) 12%.
17) A company can issue shares at a discount under Section
a) 77.
b) 78.
c) 53.
Ans: c) 53.
18) A company can issue shares at a discount under Section
a) 77.
b) 52.
c) 79.
Ans: b) 52.
19) Balance sheet shows:
a) Financial position of a company.
b) Cash flow of a company.
c) Earning efficiency of a company.
d) Flow of Funds.
Ans: a) Financial position of a company.
20) Profit and loss account shows:
a) Financial position of a company.
b) Cash flow of a company.
c) Earning or operating efficiency of a company.
d) Flow of Funds.
Ans: c) Earning efficiency of a company.
21) A company can issue share at a discount if
a) One year have been elapsed since the date at which the company was allowed to commence business.
b) Sweat Equity Shares issued at a discount must belong to a class of shares already issued.
c) Issue must take place within two must after the date of sanction by the court or within extended time.
d) All of the above.
Ans: d) All of the above.
22) Right share are not offered to the existing equity shareholders if:
a) The company in general meeting has so decided by a special resolution.
b) Decided by an ordinary resolution and same has been approved by the central government.
c) Right shares are offered to existing shareholders only.
d) Both a and b.
Ans: d) Both a and b.
(Hint: Sometimes it is issued to the outsiders if point a and b is satisfied.}
23) Section 62 is not applicable to:
a) A private company.
b) Conversion of debenture into shares.
c) Option to subscribe for shares in the company attached to debentures issued or loan raised by the company.
d) All of the above.
Ans: d) All of the above.
24) Which of the following reserves which can be utilised to make partly paid shares into fully paid up:
a) Securities premium.
b) Capital redemption reserve.
c) Surplus arising from a change in the method of charging depreciation.
d) Capital reserve from sale of fixed assets in cash.
Ans: d) Capital reserve from sale of fixed assets in cash.
[Hint: Securities premium and Capital redemption reserves cannot be used to make partly paid shares fully paid up.]
25) Which of the following are free reserves?
a) Plant revaluation reserve.
b) Development rebate reserve.
c) Investment allowance reserve.
d) Capital reserve collected in cash.
Ans: d) Capital reserve collected in cash.
26) Which of the following can be used for issuing bonus shares??
a) General reserve.
b) Dividend equalisation reserve.
c) Securities premium reserve.
d) All of the above.
Ans: d) All of the above.
27) Which of the following statement is false?
a) Bonus issue is made in lieu of dividend.
b) Bonus issue is not made unless the partly paid shares are made fully paid up.
c) Bonus issue must be implemented within 15 days from the date of such approval (if Shareholders’ approval is not required) or 2 months (if Shareholders’ approval is required).
d) Bonus is simply capitalisation of free reserves.
Ans: a) Bonus issue is made in lieu of dividend.
28) Bonus shares are issued only to:
a) Debenture holders.
b) Secured creditors.
c) Equity shareholders.
d) Preference shareholders.
Ans: c) Equity shareholders.
29) Redeemable Preference shares can be redeemed out of:
a) The sale proceeds of Investments.
b) The proceeds of a fresh issue of shares.
c) Securities premium reserve.
d) The proceeds of issue of debentures.
Ans: b) The proceeds of a fresh issue of shares.
30) According to Sec. 55 A company cannot issue redeemable preference shares for a period exceeding _____________.
a) 6 years.
b) 7 years.
c) 8 years.
d) 20 years.
Ans: d) 20 years.
31) According to sec. 55 (1)(c) of the Companies Act, 2013, a company can pay back share capital which is in excess of need if:
a) Authorised by articles.
b) Confirmation of the court.
c) Special resolution is passed to that effect.
d) All of the above.
Ans: d) All of the above.
32) According to Sec. 55 of the Companies Act, 2013, preference shares to be redeemed:
a) Should be fully paid up.
b) Should be partly paid up.
c) Can be fully or partly paid-up.
d) None of the above.
Ans: a) Should be fully paid up.
33) Capital redemption reserve can be utilised for:
a) Writing of preliminary expenses.
b) Buy back of shares.
c) Writing off capital losses.
d) For issuing fully paid bonus shares.
Ans: d) For issuing fully paid bonus shares.
34) Nominal value of preference shares to be redeemed must be equal to:
a) Issue prices of fresh equity shares.
b) Capital redemption reserve account.
c) Nominal value of fresh issue of shares and capital redemption reserve account.
d) Capital reserve.
Ans: c) Nominal value of fresh issue of shares and capital redemption reserve account.
35) Premium on redemption of preference shares should be written off:
a) Securities premium reserve account.
b) Capital reserves.
c) Capital redemption reserve.
d) Any type of reserve.
Ans: a) Securities premium reserve account.
36) As per section 68 of the Companies Act, 2013, a company can buy back its own shares out of:
a) Free Reserves which are available for distribution as dividend.
b) Securities premium account.
c) Proceeds of fresh issue of shares or other specified securities.
d) All of the above.
Ans: d) All of the above.
37) Maximum buy back limit in any year is ______ of total paid up equity capital and free reserves of the company.
a) 25%.
b) 10%.
c) 20%.
d) No limit.
Ans: b) 10%.
38) Maximum buy back limit in any year is ______ of total paid up equity capital.
a) 25%.
b) 10%.
c) 20%.
d) No limit.
Ans: a) 25%.
39) According to Sec. 68(5) of the Companies Act, 2013, the buyback can be made from:
a) From the existing shareholders on a proportionate basis.
b) From open market.
c) From employee to whom shares are issued under stock option or sweat equity share.
d) All of the above.
Ans: d) All of the above.
40) When a company completes buyback of its shares, it cannot further issue same kind of shares within a period of:
a) 6 months.
b) 1 year.
c) 2 years.
d) 5 years.
Ans: a) 6 months.
41) Debenture represents the:
a) Long-term liabilities of a business.
b) Govt’s share in the capital of the company.
c) Short-term liabilities.
d) Investment by shareholders in business.
Ans: a) Long-term liabilities of a business.
42) Debenture holders are:
a) Owners of the company.
b) Creditors of the company.
c) Investors of the company.
d) Directors of the company.
Ans: b) Creditors of the company.
43) Debentures can be _________.
I. Mortgage Debentures or Simple Debentures.
II. Registered Debentures Or Bearer Debentures.
III. Redeemable Debentures or Irredeemable Debentures.
IV. Convertible Debentures or Non-convertible Debentures.
a) Both (I) and (II) above.
b) Both (I) and (III) above.
c) Both (II) and (III) above.
d) All of (I), (II), (III) and (IV) above.
Ans: d) All of (I), (II), (III) and (IV) above.
44) Discount on issue of debentures is a:
a) Revenue loss to be charged in the year of issue.
b) Capital loss to be written off from capital reserve.
c) Capital loss to be written off over the tenure of the debentures.
d) Capital loss to be shown as goodwill.
Ans: c) Capital loss to be written off over the tenure of the debentures.
45) Discount on issue of debentures is shown under which head in the balance sheet?
a) Reserves and Surplus.
b) Miscellaneous expenditure.
c) Current assets.
d) Non-current liabilities.
Ans: b) Miscellaneous expenditure.
46) Debentures can be redeemed out of:
a) Profits.
b) Capital.
c) Provisions made for redemption.
d) By converting them into shares or new debentures.
e) All of the above.
Ans: e) All of the above.
47) Premium on redemption of debentures account is:
a) A real account.
b) A nominal account – income.
c) A personal account.
d) A nominal account – expenditure.
Ans: d) A nominal account – expenditure.
48) The term “Internal Reconstruction” means:
a) Reduction of Share Capital.
b) Variation of Shareholder’s right.
c) Alternation of share capital.
d) All of the above.
Ans: d) All of the above.
49) In case of sub-division of share capital the total number of shares:
a) Increases.
b) Decreases.
c) Does not change.
Ans: a) Increases.
50) If the shares of smaller denomination-are converted into the shares of higher denomination without changing the total amount of share capital, then it is a case of:
a) Consolidation of share capital.
b) Sub-division of share capital.
c) Decrease in unissued share capital.
Ans: a) Consolidation of share capital.
51) Any loss on revaluation of the assets at the time of internal reconstruction, will be charged from—
a) Revaluation account.
b) Share capital account.
c) Capital reduction account.
Ans: c) Capital reduction account.
52) In which of the following cases, procedure of reduction of capital is not called for:
a) Redemption of preference shares.
b) Forfeitures of shares.
c) Surrender of shares or gift of shares.
d) All of the above.
Ans: d) All of the above.
53) In a scheme of reorganisation amount of shares surrendered by shareholders is transferred to:
a) Capital reduction account.
b) Shares surrendered account.
c) Capital reserve account.
d) Reserve capital account.
Ans: b) Shares surrendered account.
54) Preparation of consolidated Balance Sheet of Holding Co. and its subsidiary company as per:
a) As 11.
b) AS – 22.
c) AS 21.
d) AS – 23.
Ans: c) AS 21.
55) Which of the following is the holding company?
a) A company who acquires more than 50% share in another company.
b) A company who controls the composition of the board of directors of other company.
c) A company who controls a company which is holding company of another subsidiary.
d) All of the above.
Ans: d) All of the above.
56) Minority Interest includes:
a) Share in share capital.
b) Share in Capital profit.
c) Share in Revenue profit.
d) All of the above.
Ans: d) All of the above.
57) Pre-acquisition profit in subsidiary company is considered as:
a) Revenue profit.
b) Capital profit.
c) Goodwill.
d) None of the above.
Ans: b) Capital profit.
58) Pre-acquisition profit in subsidiary company is considered as:
a) Revenue profit.
b) Capital profit.
c) Goodwill.
d) None of the above.
Ans: a) Revenue profit.
59) Excess of cost of investment over paid up value of the shares is considered as:
a) Goodwill.
b) Capital Reserve.
c) Minority Interest.
d) None of above.
Ans: a) Goodwill.
60) Excess of paid up value of the shares over cost of investment is considered as:
a) Goodwill.
b) Capital Reserve.
c) Minority Interest.
d) None of above.
Ans: b) Capital Reserve.
61) Preparation of consolidated statement as per AS 21 is
a) Optional.
b) Mandatory for listed Companies.
c) Mandatory for Pvt. Ltd.
d) Companies Ltd. partnership firm.
Ans: b) Mandatory for listed Companies.
62) The share of outsiders in the Net Assets in subsidiary company is known as under:
a) Outsider’s liability.
b) Assets.
c) subsidiary company’s liability.
d) Minority Interest.
Ans: d) Minority Interest.