Commerce Multiple Choice Questions Answers

Commerce Multiple Choice Questions Answers

1. The Doing Business Report" is prepared by which of the following organizations every year?
(A) World Bank (B) Asian Development Bank (ADB)
(C) International Monetary Fund (IMF) (D) World Trade Organization (WTO)
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2. Accounting for Intangible Assets are related to–
(A) AS - 10 (B) AS - 12
(C) AS - 24 (D) AS - 26
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3. Indian Accounting Standard – 28 is related to–
(A) Accounting for taxes on income
(B) Financial Reporting of Interests in Joint Venture
(C) Impairment of Assets
(D) Provisions, Contingent Liabilities and Contingent Assets
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4. Recording of capital contributed by the owner as liability ensures the adherence of principle of–
(A) Consistency (B) Going concern
(C) Separate entity (D) Materiality
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5. Bad loans in banking terminology are generally known as–
(A) BPOs (B) Prime Asset
(C) NPAs (D) CBS
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6. An association of cement manufacturers is an example of–
(A) Diagonal combination (B) Vertical combination
(C) Horizontal combination (D) Lateral combination
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7. The product range is widest in case of–
(A) Chain store (B) Departmental store
(C) Speciality shop (D) One price shop
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8. A public corporation is set up–
(A) By a Special Act of Parliament
(B) By a special order of the Government
(C) Under Indian Companies Act, 1956
(D) By none of the above
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9. The minimum number of members required for registration of a cooperative society are–
(A) Two (B) Seven
(C) Ten (D) Twenty
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10. Insurable interest must be present at the time of insurance proposal and payment of claims in–
(A) Fire Insurance (B) Marine Insurance
(C) Life Insurance (D) Motor Insurance
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11. A machinery is purchased for Rs. 3,00,000 and Rs. 50,000 is spent on its installation. Rs. 5,000 is spent on fuel. What will be the amount of capital expenditure ?
(A) Rs. 3,00,000 (B) Rs. 3,50,000
(C) Rs. 3,55,000 (D) None of these
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12. Which of the following errors are not disclosed by Trial Balance ?
(A) Compensatory Errors (B) Errors of Principle
(C) Errors of Omission (D) All the three
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13. A large amount spent on special advertisement is–
(A) Capital Expenditure (B) Revenue Expenditure
(C) Revenue Loss (D) Deferred Revenue Expenditure
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14. Double Entry System was introduced in–
(A) America (B) Japan
(C) India (D) Italy
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15. According to going concern concept a business entity is assumed to have–
(A) A long life (B) A small life
(C) A very short life (D) A definite life
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16. Which of the following companies do not have the obligation to get its Articles of Association registered along with the Memorandum of Association ?
(A) Public Company limited by shares
(B) Unlimited companies
(C) Private companies limited by shares
(D) Companies limited by guarantee
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17. What does management audit imply ?
(A) Complete audit (B) Detailed audit
(C) Efficiency audit (D) Interim audit
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18. Which one of the following statements is correct ?
(A) Internal audit and Management audit are the same
(B) Internal audit and statutory audit are the same
(C) Internal audit is compulsory in all cases
(D) Statutory audit of company accounts is compulsory
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19. Where does an auditor of a cooperative society submit the audit report ?
(A) To the managing committee of the society only
(B) To the Registrar of Cooperative Societies of the State concerned only
(C) To the State Assembly concerned
(D) To the Registrar of Cooperative Societies of the State concerned and a copy to the society
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20. Which one of the following statements is correct ?
(A) Audit of an educational institution is compulsory if it is run by a charitable trust
(B) A club is treated as a commercial establishment
(C) The accounts of a charitable trust can be audited by any person who belongs to accountancy profession
(D) Audit of a charitable trust is not compulsory under law
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