Corporate Accounting Solved Mcqs set 15

351. In………., an existing company’s financial structure is reorganized

without liquidating the existing company and forming a new company.
A. Amalgamation

B. External reconstruction

C. Absorption

D. Internal reconstruction

Answer: D

352. Internal reconstruction is done due to ………..

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A. Accumulated losses
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B. Shortage of working capital
a
C. Large amount of fictitious assets
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D. All of these
c
Answer: D M
353. In ………., the company does not loss its identity
A. Amalgamation

B. External reconstruction

C. Absorption

D. Internal reconstruction

Answer: D

354. Internal reconstruction can be ………

A. Alteration of share capital

B. Reduction of share capital

C. Re?organization of capital

D. All of these

Answer: D

355. Capital of a company can be reduced by …………

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 Corporate Accounting Solved Mcqs set 15

A. Authorization of Articles

B. Passing of a special resolution

C. Confirmation of court

D. All of these

Answer: D

356. Capital Reduction Account is a ………..

A. Nominal Account

B. Permanent Account
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C. Temporary Account .c
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D. None of these
a
Answer: C
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c Account is transferred to …………
357. The balance in Capital Reduction
A. General Reserve
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B. Profit and loss Account

C. Capital Reserve

D. Goodwill Account

Answer: C

358. In internal reconstruction, increase in the value of fixed assets is

credited to……….
A. Capital reserve

B. Share capital

C. General reserve

D. Capital reduction account

Answer: D

359. In case of subdivision of share capital, the amount of share

capital……….
A. Increases

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 Corporate Accounting Solved Mcqs set 15

B. Decreases

C. Does not change

D. None of these

Answer: C

360. In case of subdivision of share capital, the total number of shares

……….
A. Increases

B. Decreases
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C. Does not change
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D. None of these
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a
Answer: A

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361. In internal reconstruction, the existing company will be ……….
A. Amalgamated M
B. Absorbed

C. Liquidated

D. None of these

Answer: D

362. In internal reconstruction, amount sacrificed by shareholders are

credited to……..
A. Capital reserve

B. General Reserve

C. Capital reduction account

D. None of these

Answer: C

363. When company converts its equity shares into capital stock, the
account to be credited is …
A. Equity share capital account

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 Corporate Accounting Solved Mcqs set 15

B. Equity capital stock account

C. No entry

D. None of these

Answer: B

364. Alteration of shares of smaller amounts into shares of larger amount

is called ……….
A. Subdivision of shares

B. Consolidation of shares
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C. Cancellation of shares
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D. None of these
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a
Answer: B

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365. In case of consolidation of share capital, the total number of shares
………….
A. Increases
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B. Decreases

C. Does not change

D. None of these

Answer: B

366. . ……..is called a factory of credit.

A. Company

B. Firm

C. Bank

D. None of these

Answer: C

367. Banking companies are governed in India by ……….

A. Banking Regulation Act

B. Indian Companies Act

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 Corporate Accounting Solved Mcqs set 15

C. Reserve Bank of India Act

D. All of these

Answer: A

368. CRR stands for …………

A. Current Reserve Ratio

B. Capital Reserve Ratio

C. Cash Reserve Ratio

D. Capital Redemption Ratio

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Answer: C .c
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369. SLR stands for ……………
a
A. Savings Level Ratio
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B. Statutory Liquidity Ratio c
C. Standard Liquidity Ratio
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D. None of these

Answer: B

370. The method of rapidly posting entries in the books of banks is called
as ……….
A. Single Entry

B. Cash Method

C. Slip System

D. None of these

Answer: C

371. The P&L A/c of Banking Companies are prepared as per ………….of
Banking Regulation Act.
A. Form A of Schedule III

B. Form B of Schedule III

C. Form A of Schedule VI

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 Corporate Accounting Solved Mcqs set 15

D. Form B of Schedule VI

Answer: B

372. …….of profit is transferred to statutory reserves.

A. 10%

B. 20%

C. 25%

D. 30%

Answer: C
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373. Banks show the provision for income tax under the head ……….
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A. Contingent liabilities
a
B. Deposits
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C. Other liabilities and provisions c
D. Borrowings
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Answer: C

374. Rebate on bills discounted is ………..

A. An income accrued but not received

B. A liability

C. An expense

D. Income received in advance

Answer: D

375. NPA stands for………….

A. Non? Performing Assets

B. Normal Performing Assets

C. National Performing Asset

D. None of these

Answer: A

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