3 Sem-Corp Acc 2019 QB
3 Sem-Corp Acc 2019 QB
3 Sem-Corp Acc 2019 QB
UNIVERSITY OF CALICUT
School of Distance Education
III SEMESTER
B Com
Core Course BCM3 B04
CORPORATE ACCOUNTING
MULTIPLE CHOICE QUESTIONS
1. When all debentures are redeemed, balance in the Debenture Redemption Fund
Account is transferred to:
(a) Capital Reserve (c) Profit & Loss Appropriation A/c
(b) General Reserve (d) None of these.
5. If debenture of ` 1,00,000 were issued for discount of ` 10,000, which are redeemable
after four years. Then amount of discount to be written off from P. & L. Account each year is
(a) `3,000 (c) ` 2,500
(b) ` 4,000 (d) ` 5,000
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10. If debentures purchased in open market are not immediately cancelled, they are treated as
(a) Current Assets (c) Investment
(b) Current Liabilities (d) Capita
12. A company issued 1,000, 12% debentures of ₹100 each at 10% premium. 12%
stand for:
(a) Rate of dividend (c) Rate of interest
(b) Rate of Tax (d) None of these
13. A company should transfer to Debenture Redemption Reserve A/c at least what
percent of the amount of debentures issued before the commencement of redemption of
debentures-
(a) 50% (c) 15%
(b) 25% (d) 100%
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20. When debentures are issued at par and are redeemable at a premium, the loss on such
an issue is debited to :
(a) Profit & Loss A/c (c) Loss on Issue of Debentures A/c
(b) Debenture Application and Allotment A/c (d) Premium on Redemption A/c
22. When debentures are redeemed out of profits, an equivalent amount is transferred to :
(a) General Reserve (c) Capital Reserve
(b) Debenture Redemption Reserve (d) Profit & Loss A/c
23. Profit on sale of debentures redemption fund investment in the first instance in
credited to :
(a) Debenture Redemption Fund A/c (c) General Reserve A/c
(b) Profit & Loss Appropriation A/c (d) Sinking Fund A/c
24. When debentures are issued at a discount and are redeemable at a premium, which of
the following accounts is debited at the time of issue ?
(a) Debentures A/c
(b) Premium on Redemption of Debentures A/c
(c) Loss on Issue of Debentures A/c
(d) Profit & Loss A/c
25. According to SEBI guidelines what percentage of the amount of debentures must be
transferred to Debenture Redemption Reserve, before the commencement of redumption of
debentures, in case of convertible debentures ?
(a) 25% (c) 100%
(b) 50% (d) zero
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30. Debenture is a :
(a) Loan certificate (c) Credit certificate
(b) Cash certificate (d) None of these
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b) Rate at which RBI offers loan facilities to commercial banks against government
securities, with the condition that banks need to repurchase the securities in a short period.
c) Banks having excess cash can buy securities from RBI with a condition of reselling
securities to RBI on a prefixed day and price.
d) Banks can discount bills of exchange and avail loan from RBI at times when cash is
needed.
39. Increase in cash reserve ratio (CRR) by the RBI will result in:
a) Initially increase the supply but later on decrease automatically.
b) No impact on the supply of money in the economy
c) Decrease the supply of money in the economy
d) Increase the supply of money in the economy
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47. Fixed payment at regular intervals made by the insured for a contract of insurance is
called
a) commission c) Bonus
b) Premium d) Sum Assured
50. Which of the following are the statutory books of insurance companies?
a) Register of policies
b) The register of claims
c) The register of Licensed Insurance agents
d) All of the above
51. In case of life insurance companies, premium shall be recognized as income when?
a) It is received c) When policy comes into force
b) It is true d) Premium is not an income
52. In case of life insurance companies, which account is prepared to ascertain profit?
a) Revenue account c) Valuation balancesheet
b) Profit and loss account d) None of these
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58. An arrangement between two insurance companies whereby one transfers a part of risk
to other company is called:
a) Reinsurance c) Joint insurance
b) Double insurance d) Maha Insurance
61. When the goodwill is attached to the person rather than the place it is known as
a) Cat goodwill c) Dog goodwill
b) Rat goodwill d) None of these
62. According to the valuation based on price earnings ratio, the market value of share is
given by:
a) Price earnings ratio x Earning per share
b) Profit available for equity shareholders/ No. of equity shares
c) Normal rate of return/100
d) None of the above
63. Factory closure cost will be shown in statement of profit and loss (Division 1) Schedule
3 of Companies act 2013, under the head of _____________.
a) Other Expenses c) Extraordinary items
b) Finance Cost d) None of these
64. The requirement for final account of companies are specified in Schedule___________
a) I c) XII
b) VI d) III
66. Any amount payable within 12 months form date of Balance Sheet is called______
a) Capital c) Contingent Liabilities
b) Loan d) Current Liabilities
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71. The interest accrued on investment appears in the Balance Sheet under the head_____
a) Other Current Assets c) Loans & Advances
b) Fixed Assets d) Investments
73. Which of the following items do not come under, reserves & Surplus
a) Capital redemption reserve c) Provident Fund
b) General Reserve d) Sinking Fund
76. Which of the following items appears on the assets side of Balance Sheet?
a) Capital Reserve c) Sinking Fund Investment
b) Security Premium d) Specific Reserve
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Corporate Accounting 9
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95. Which of the following is the only public sector company in the field of life insurance
a) General insurance company c) Oriental insurance company
b) New india Insurance Company d) Life insurance corporation of india
97. Which of the following term is NOT related to the insurance sector?
a) Indemnity c) Misuse alert
b) Coverage d) Annuity
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99. Foreign exchange reserves of india are kept in the custody of which of the following?
a) Reserve bank of india
b) All public sector banks
c) Foreign banks in india.
d) Government Treasury
100. Which of the following was the parent company of New India Assurance?
a) LIC
b) GIC
c) Oriental Insurance Company Ltd
d) United India Insurance Company Ltd
ANSWER KEY
Qn.No Ans Qn.No Ans Qn.No Ans Qn.No Ans Qn.No Ans
1 A 21 C 41 C 61 C 81 A
2 B 22 B 42 A 62 A 82 D
3 C 23 A 43 C 63 C 83 C
4 D 24 C 44 A 64 D 84 A
5 C 25 D 45 C 65 B 85 A
6 D 26 A 46 C 66 D 86 C
7 C 27 B 47 B 67 B 87 B
8 B 28 C 48 B 68 B 88 B
9 C 29 C 49 C 69 B 89 A
10 C 30 A 50 D 70 B 90 B
11 D 31 A 51 B 71 A 91 D
12 C 32 A 52 C 72 B 92 B
13 B 33 A 53 B 73 C 93 A
14 D 34 A 54 C 74 A 94 A
15 A 35 A 55 A 75 A 95 D
16 C 36 C 56 A 76 C 96 C
17 C 37 C 57 B 77 C 97 C
18 B 38 A 58 A 78 A 98 D
19 C 39 C 59 B 79 A 99 A
20 C 40 B 60 A 80 A 100 B
Prepared By
Sri. Rajan P
Assistant Professor of Commerce
School of Distance Education
University of Calicut
Corporate Accounting 11