Commerce GK Questions

Commerce GK Questions

1. Audit adopted by banking company is–
(A) Continuous Audit (B) Periodical Audit
(C) Internal Audit (D) Balance Sheet Audit
See Answer:

2. Which of the following have lien of Company Auditor ?
(A) Books of Accounts of the Company
(B) Vouchers of the Company
(C) Auditor’s working paper
(D) All of the above
See Answer:

3. To appoint new auditor in place of retiring auditor, to adopt the procedure, which section of Companies’ Act, 1956 is applicable ?
(A) 223 (B) 224
(C) 225 (D) 226
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4. “A company has a separate legal existence from its members.” This principle was first laid down in case of–
(A) Saloman Vs. Saloman & Co. Ltd. (1897)
(B) Daimler Co. Ltd. Vs. Continental Tyre & Rubber Co. (1916)
(C) State of U. P. Vs. Renu Sagar Power Co. (1991)
(D) Santunu Roy Vs. Union of India (1989)
See Answer:

5. According to ownership, Government Company means ……… share.
(A) Whose paid-up share capital’s 48%, shares are owned by Government
(B) Whose paid-up share capital’s 49% shares are owned by Government
(C) Whose paid-up share capital’s 50% shares are owned by Government
(D) Whose paid-up share capital’s 51% shares are owned by Government
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6. Match the following List-I with List-II and select the correct answer from the answer codes given below–
(a) AS-6 (b) AS-10
(c) AS-26 (d) AS-20
1. Accounting for Earning per share 2. Accounting for intangible and fictitious assets
3. Accounting for fixed assets 4. Depreciation Accounting
Codes :
(a) (b) (c) (d)
(A) 1 2 3 4
(B) 3 2 1 4
(C) 1 3 2 4
(D) 4 3 2 1
See Answer:

7. Establishment expenses of a new machine will be debited to–
(A) Expenses Account (B) Profit and Loss Account
(C) Machinery Account (D) None of the above
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8. Goodwill is–
(A) Floating Asset (B) Wasting Asset
(C) Fictitious Asset (D) Intangible Asset
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9. A Balance Sheet shows only–
(A) Personal Accounts and Nominal Accounts
(B) Real Accounts and Nominal Accounts
(C) Personal Accounts and Real Accounts
(D) Personal, Real and Nominal Accounts
See Answer:

10. Discount on Issue of Shares A/c is shown at the–
(A) Debit side of P & L A/c (B) Assets side of B/S
(C) Liabilities side of B/S (D) None of the above
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11. Given :
Realised value of assets Rs. 60,000
Profit on Realisation Rs. 3,000
Book value of assets will be–
(A) Rs. 63,000 (B) Rs. 57,000
(C) Rs. 60,000 (D) Rs. 61,500
See Answer:

12. A, B and C are partners sharing profits and losses in the ratio of 4 : 3 : 2. D is admitted for 1/10 share. The new ratio will be–
(A) 5 : 4 : 3 : 2 (B) 4 : 4 : 3 : 2
(C) 4 : 3 : 2 : 1 (D) None of the above
See Answer:

13. If actual average profit is Rs. 30,000 and normal rate of return is 12%, then capitalization value of the profits will be–
(A) Rs. 3,60,000 (B) Rs. 2,50,000
(C) Rs. 3,05,000 (D) None of the above
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14. Under which Section of Companies’ Act an auditor has a right to participate and to speak in the General Meeting ?
(A) 231 (B) 229
(C) 226 (D) 224
See Answer:

15. New profit sharing ratio is calculated at the time of–
(A) Admission of a new partner (B) Retirement of a partner
(C) Death of a partner (D) All of the above
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16. Consider the following–
Amortization refers to writing off the value of
(1) tangible assets
(2) intangible assets
(3) fictitious assets
Which of the above is/are correct ?
(A) 1 and 2 (B) 2 and 3
(C) 1 only (D) 2 only
See Answer:

17. The following information is disclosed by ‘A’– Rs. Provision for doubtful debts as on 1.1.2012 : 6,000 Bad debts written off during the year 2012 : 1,200 Total debtors as on
31.12.2012 : 80,000 A provision for Doubtful Debts to be made @ 5% What is the amount to be shown on the credit side of P/L A/c ?
(A) Rs. 4,800 (B) Rs. 2,400
(C) Rs. 1,200 (D) Rs. 800
See Answer:

18. What is reduction of paid-up share capital called ?
(A) External reconstruction (B) Internal reconstruction
(C) Reorganization (D) Redemption of capital
See Answer:

19. Under which of the following methods of depreciation the amount of an asset is never reduced to zero ?
(A) Straight line method (B) Diminishing balance method
(C) Sums of Years Digit method (D) Annuity method
See Answer:

20. An insurance claim of Rs. 300 was accepted in respect of stock (inventory) of Rs. 500, which was destroyed by fire. Rs. 200 not covered by insurance should be debited to which one of the following ?
(A) Stock account (B) Trading account
(C) Profit and loss account (D) Goodwill account
See Answer:


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