108/2021 - Accountant/ Cashier/ Jr. Audit Assistant in KTDC/ KSIDC/ MATSYAFED

Question 1

When debentures are issued as a collateral security, Debenture Suspense Account is :

Accepted Answer

Deducted from debentures account in the balance sheet

Answer

Added to debentures account in the balance sheet

Answer

No adjustment is required

Answer

None of the above

Question 2

Which of the following is correct?

Accepted Answer

Opening Capital = Closing Capital + Drawing – Additional Capital – Profit

Answer

Opening capital = Closing capital + Additional Capital – Drawings – Profit

Answer

Opening Capital = Closing Capital + Drawings – Additional Capital – Loss

Answer

Opening Capital = Closing Capital – Additional Capital – Drawings – Loss

Question 3

Income tax paid by Mr. A to Rs. 3,000. The accounting treatment is :

Accepted Answer

To be deducted from Capital

Answer

To be credited to the Profit and Loss Account

Answer

To be ignored altogether

Answer

To be debited to the Trading Account

Question 4

Donation received for special purpose should be :

Accepted Answer

Credited to a Separate Account and shown in the balance Sheet

Answer

Treated as revenue

Answer

Treated as revenue unless the amount is large

Answer

Not recorded at all

Question 5

Second hand furniture worth Rs. 6000 was purchased. It was repaired for Rs. 600 and installed by workmen to whom Rs. 200 was paid as wages. The furniture should be capitalised for :

Accepted Answer

Rs. 6800

Answer

Rs. 5000

Answer

Rs. 5500

Answer

None of the Above

Question 6

If the amount of any known liability can be determined with substantial accuracy :

Accepted Answer

a definite liability should be created

Answer

a provision should be created

Answer

a reserve should be created

Answer

none of these

Question 7

When closing capital is greater than opening capital, it denotes :

Accepted Answer

Profit if there is no introduction of fresh capital

Answer

Profit

Answer

Loss

Answer

No profit no loss

Question 8

The total sum payable by the hirer under a hire purchase agreement in order to complete the purchase of or acquisition of property in the goods is known as :

Accepted Answer

Hire purchase Price

Answer

Cash price

Answer

Down payment

Answer

Hire purchase Charges

Question 9

Equity shares issued at a discount or for consideration other than cash for providing know how or making available rights in the nature of intellectual property rights or value addition are known as :

Accepted Answer

Sweat Equity Shares

Answer

Stock Invest Scheme

Answer

Employee Stock Purchase Scheme

Answer

Right Issue of Shares

Question 10

A bill of Exchange must be :

Accepted Answer

Unconditional

Answer

Conditional

Answer

Drawer

Answer

None of these

Question 11

When an underwriter agrees to buy a definite number of shares or debentures in addition to the shares or debentures he has to take under the underwriting agreement, it is known as :

Accepted Answer

Firm underwriting

Answer

Partial underwriting

Answer

Complete underwriting

Answer

None of these

Question 12

Net payment method is used to calculate :

Accepted Answer

Purchase Consideration

Answer

Reserve fund

Answer

Underwriting Commission

Answer

None of these

Question 13

Surplus Account (negative balance) is transferred by the vendor company at the time of absorption to :

Accepted Answer

Equity Shareholders Account

Answer

Realisation Account

Answer

Purchasing Company’s Account

Answer

None of the above

Question 14

When Statutory Reserve of the Vendor company is maintained by the Purchasing Company, then Purchasing Company gives debit to :

Accepted Answer

Amalgamation adjustment Account

Answer

Statutory Reserve

Answer

Goodwill Account

Answer

Capital Reserve Account

Question 15

Which of the following should be deducted from the share capital to find out paid up capital?

Accepted Answer

Calls in arrear

Answer

Calls in advance

Answer

Securities Premium

Answer

Bonus

Challenge Yourself

Practice Mode

Mock Test

108/2021 - Accountant/ Cashier/ Jr. Audit Assistant in KTDC/ KSIDC/ MATSYAFED