Quiz Questions with Answers Related to Commerce

Quiz Questions with Answers Related to Commerce

1. Consider the following– The investment portfolio of a business as on 31-12-2012 stood as follows–
(1) 8% Debentures of X Co. Ltd. (Rs. 6,000). Interest payable on 31st March and 30th September.
(2) 7% Debentures of Y Co. Ltd. (Rs. 4,000). Interest payable on 30th June and 31st December.
(3) 10% Debentures of Z Co. Ltd. (Rs. 9,000). Interest payable on 1st June and 1st December. Amount of interest accrued on the closing date will be–
(A) Rs. 335 (B) Rs. 1,025
(C) Rs. 195 (D) Rs. 830
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2. Which one of the following is correct with respect to going concern convention ?
(A) The enterprise is not going to terminate its operations in the period ahead
(B) The enterprise may go out of business in the next accounting period
(C) The enterprise may not divest or diversify its operational spheres
(D) The enterprise may not revalue its assets during the current accounting period
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3. Which one of the following will lead to understatement of net profit ?
(A) Amortization of Fictitious Assets
(B) Treating capital expenditures revenue expenditure
(C) Treating revenue expenditure as capital expenditure
(D) Creation of general reserve
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4. Which one of the following items is considered revenue expenditure ?
(A) Expenditure by way of maintenance that has increased productivity
(B) Repair of a gearbox in a car that has enhanced its operational life
(C) Complete overhaul of a machine, spending around 20% of its value
(D) Changing a small component of a machine to maintain its operating efficiency
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5. After the construction of their new factory building M/s XYZ Co. shifted to it. During this process Rs. 20,000 were spent on pulling down the old structure and Rs. 2,000 were spent on shifting the stocks to new building. These expenditures are to be classified as–
(A) Capital expenditure
(B) Revenue expenditure
(C) Capital and revenue expenditure respectively
(D) Deferred Revenue expenditure
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6. Which one of the following reports should have ‘responsibility statement’ under the Companies Act, 1956 ?
(A) Auditor’s report (B) Board of Director’s report
(C) Company Secretary’s report (D) Audit Committee’s report
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7. Which one of the following reports deals with ‘Corporate governance’ ?
(A) Sabhanayagam Report (B) Kumaramangalam Birla Report
(C) Narasimhan Report (D) L.C. Gupta Report
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8. Minimum paid-up capital required to incorporate a public limited company is–
(A) Rs. 20,000 (B) Rs. 1,00,000
(C) Rs. 5,00,000 (D) Rs. 10,00,000
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9. As per the Companies Act, 1956, who among the following must be included in the Audit Committee constituted in a company ?
(A) Managing Director and whole-time Director
(B) Auditor and Internal Auditor
(C) Company Secretary
(D) Directors who are not whole-time and Managing Director
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10. Internal audit report is submitted to–
(A) Government (B) Shareholders
(C) Creditors (D) Board of Directors
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11. The managerial function of organizing involves–
(A) reviewing and adjusting plan in the light of changing conditions
(B) establishing programme for the accomplishment of objectives
(C) creating a structure of functions and duties to be performed by a group
(D) getting things done through others
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12. Which one of the following is the most important function of a manager ?
(A) Communication (B) Directing
(C) Supervising (D) Decision-making
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13. When there are large number of smaller projects and the activities of those projects are to be accomplished by setting up some temporary departments, the appropriate organisation structure should be–
(A) project organization (B) functional organisation
(C) matrix organization (D) divisional organisation
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14. Which one of the following is the major consideration for decentralization ?
(A) Organization’s environment (B) Nature of management function
(C) Size of the organization (D) Ability of higher-level managers
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15. Organisations require narrow span of control if there are–
(A) mature subordinates within (B) competent and trained managers
(C) unclear plans for non-repetitive operations (D) well-defined plans for repetitive operations
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16. Section 210A concerning the Constitution of National Advisory Committee in Government for advice on the formulation and laying down of accounting policy and accounting standards for adoption by the companies or class of companies under the Act, has been inserted by–
(A) the Companies (Amendment) Act, 1999 with retrospective effect of 31.10.1998
(B) the Companies (Amendment) Act, 1988
(C) the Companies (Central Government) General Rules and Forms, 1956
(D) None of these.
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17. Which of the following is not disqualified for appointment as auditor of a company ?
(A) A firm having chartered accountants as its partners
(B) An officer or employee of the company
(C) A person who is a partner or who is in the employment of an officer or employee of the company
(D) A person who is indebted to the company for an amount exceeding Rs. 1,000 or a guarantor for more that Rs. 1,000
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18. Which of the following amounts shall be credited to Investor Education and protection Fund, if they remain unpaid/unclaimed for seven years from the date they become due ?
(A) Matured debentures of a company (B) Tax arrears
(C) Proceeds of sale of property (D) Provision for doubtful debts.
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19. Any casual vacancy in the office of a statutory auditor caused by the resignation of the auditor shall be filled by the company–
(A) at the Board Meeting (B) at the Annual General Meeting
(C) by means of a circular resolution (D) at the Statutory Meeting.
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20. In verification of assets the duty of the auditor is–
(A) to ensure that asset have actually been acquired
(B) to ensure that they are clearly stated in the balance sheet
(C) to satisfy himself that they are properly valued
(D) to satisfy himself with regard to the existence, ownership and value of the assets.
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