SYBCOM Accounting and Financial Management MCQ with Answers: Mumbai University 2021

SYBCOM Accounting and Financial Management MCQ with Answers

A company is created by___________Act.

  1. Companies
  2. Partnership
  3. Contract
  4. Co-Operative Societies

A Public Company must appoint______________directors.

  1. Voluntary
  2. Independent
  3. Dependent
  4. Artificial

__________company is introduced by the Companies Act, 2013.

  1. One Person
  2. Small
  3. Public
  4. Private

Auditor of a Government company is appointed by_____________.

  1. Processes
  2. Comptroller and Auditor General of India
  3. Members
  4. Board of Directors

Preference shares carry____________rate of dividend.

  1. Fixed
  2. Fluctuating
  3. Zero
  4. No

Sweat Equity Shares are issued to employees for providing_________.

  1. know how
  2. goods
  3. shares
  4. debentures

Debentures carry_______rate of interest.

  1. Fixed
  2. Fluctuating
  3. Zero
  4. No

Mortgage Debentures are secured by__________assets.

  1. Fixed
  2. Current
  3. Fictitious
  4. Liquid

Security premium is disclosed under______________.

  1. Share Capital
  2. Non-Current Liabilities
  3. Reserves and Surplus
  4. Non-Current Assets

Livestock is__________________asset.

  1. Fixed
  2. Intangible
  3. Liquid
  4. Current

Creditors for goods is_____________.

  1. Current Assets
  2. Non-Current Assets
  3. Current Liabilities
  4. Non-Current Liabilitites

Debtors for goods is___________.

  1. Trade Receivables
  2. Cash and Cash Equivalents
  3. Long-term Borrowings
  4. Short-term Provisions

Machinery is____________asset.

  1. Fixed
  2. Current
  3. Intangible
  4. Fictitious

Loose tools are disclosed under___________.

  1. Inventory
  2. Tangible Fixed Assets
  3. Intangible Fixed Assets
  4. Cash and Cash Equivalents

Debentures are disclosed under___________.

  1. Long-term Borrowings
  2. Short-term Borrowings
  3. Other Current Assets
  4. Other Non-Current Assets

Computer software is an____________asset.

  1. Tangible
  2. Intangible
  3. Current
  4. Fictitious

Cheques on hand is____________.

  1. Tangible
  2. Intangible
  3. Cash and Cash Equivalents
  4. Fictitious

Investment held for more than 1 year is shown under___________.

  1. Trade Receivables
  2. Inventories
  3. Other Non-Current Asset
  4. Non-Current Investments

Bills receivable are disclosed under_____________.

  1. Trade Receivables
  2. Inventories
  3. Other Non-Current Asset
  4. Short-term Provisions

Bills payable is disclosed under___________.

  1. Trade Payables
  2. Other Current Liabilities
  3. Short term Provisions
  4. Inventories

The capital reserve is shown under____________.

  1. Share Capital
  2. Reserve and Surplus
  3. Long-term Borrowings
  4. Short-term Provisions

A______________conceives the idea of the formation of a company.

  1. Shareholder
  2. Creditor
  3. Promoter
  4. Member

Unpaid balance for expenses is shown as____________.

  1. Non-Current Liability
  2. Current Liability
  3. Current Assets
  4. Non-Current Assets

___________shows the financial health of the the company.

  1. Profit and Loss
  2. Income and Expenses
  3. Realisation A/c
  4. Balance sheet

A company______________.

  1. must have limited liability
  2. must have unlimited liability
  3. may have limited or unlimited liability
  4. may not have a liability

A company having a significant influence on other company is known as___________.

  1. Holding Company
  2. Subsidiary Company
  3. Associate Company
  4. Government Company

Paid-up Capital of________ shall not exceed ₹ 50 Lakhs.

  1. Public Company
  2. Small Company
  3. Holding Company
  4. Subsidiary Company

The_____________shares are issued by the company free of cost to existing shareholders.

  1. Equity Shares
  2. Convertible Preference Shares
  3. Bonus Shares
  4. Non-Convertible Preference Shares

The fixed value of a share, printed on the share certificate, is called______________of a share.

  1. Face Value
  2. Market Value
  3. Realisable Value
  4. Residual Value

If in any year the dividend on______________has not been paid, the dividend will have to be paid out of the profits of the subsequent years.

  1. Equity Shares
  2. Non-Cumulative Preference Shares
  3. Cumulative Preference Shares
  4. Convertible Debentures

_______________means the payment made by the company to its shareholders out of its profits.

  1. Reserves
  2. Dividend
  3. Interest
  4. Profits

The minimum application money, to be paid by an applicant in a public issue, shall not be less than______% than the issue price.

  1. 10
  2. 15
  3. 20
  4. 25

__________means the dividend paid in between two annual general meetings.

  1. Interim Dividend
  2. Final Dividend
  3. Proposed Dividend
  4. Declared Dividend

Preference shareholders are entitled to dividends at________ rate.

  1. Variable
  2. Semi-variable
  3. Fixed
  4. 10%

Memorandum and Articles of a Private Company are____________________.

  1. prepared in accordance with The Companies Act, 2013
  2. prepared in accordance with SEBI regulations
  3. prepared in accordance with The Indian Contract Act, 1872
  4. never prepared

Good Luck Ltd. had issued 10,000 Equity Shares of ₹ 100 each at a premium of 45%.
State the price at which the Shares were issued

  1. 100
  2. 45
  3. 145
  4. 55

_______________is a Company incorporated outside India and has a place of business in India.

  1. Government Company
  2. Statutory Company
  3. Chartered Company
  4. Foreign Company

Which one of the following is a feature of a company.

  1. Easy to form
  2. Separation of Ownership and Management
  3. Easy to Dissolve
  4. Individual Owner

___________capital” means such aggregate amount received as paid-up, in respect of shares issued.

  1. Authorised
  2. Paid-up
  3. Subscribed
  4. Issued

The dividend is calculated on the___________value of the shares if they are partly paid.

  1. face value
  2. Paid-up value
  3. Market value
  4. Sale Value

The company can not issue__________.

  1. Convertible Preference Shares
  2. Non-Convertible Preference Shares
  3. Redeemable Preference Shares
  4. Non-redeemable Preference Shares

________________ capital” which means such capital as the company issues from time to time
for subscription.

  1. Authorised
  2. Called up
  3. Subscribed
  4. Issued

Issue of __________shares is also know as capitalisation of profits.

  1. Equity Shares
  2. Preference Shares
  3. Right Shares
  4. Bonus Shares

There shall be a minimum period of____________between the grant of options and vesting of option in case of Employee Stock Option.

  1. one year
  2. two years
  3. three years
  4. four years

Which one of the following is not the feature of a company.

  1. Separate Legal Entity
  2. Perpetual Succession
  3. Incorporation
  4. Less legal formalities

When the holder of a preference share can not convert their shares into equity share, it is called_________.

  1. Convertible Preference Shares
  2. Non-Convertible Debentures
  3. Non-Convertible Preference Shares
  4. Cumulative Preference Shares

_____________capital” means such part of the capital which has been called for payment.

  1. Authorised
  2. Called up
  3. Subscribed
  4. Issued

__________company restricts the right to transfer its shares.

  1. Public
  2. Listed
  3. Private
  4. Government

A portion of the uncalled capital that a company has decided to call only in case of liquidation of the company is called _________________capital.

  1. Authorised
  2. Paid-up
  3. Subscribed
  4. Reserve

In the case of ____________the unpaid dividend cannot be accumulated or carried forward to the subsequent years i.e. it will lapse.

  1. Equity Shares
  2. Non-Cumulative Preference Shares
  3. Cumulative Preference Shares
  4. Convertible Debentures

Debenture Redemption Reserve is________________ if debentures are redeemed through conversion.

  1. to be created
  2. to be written off
  3. not to be created
  4. not to be written off

Interest on debentures is calculated on its_________.

  1. face value
  2. value payable on redemption
  3. market value
  4. issue price

Discount on issue of Debentures can be written off against_________.

  1. Fixed Assets
  2. Current Assets
  3. Securities Premium Account
  4. Goodwill A/c

Debentures may be redeemable______________.

  1. only at par
  2. at a premium only up to 10%
  3. at discount only up to 5%
  4. at par or premium or discount without any restrictions

Repayment of the amount due to the Debenture holders at an agreed date is called________.

  1. Premium of Debentures
  2. Redemption of Debentures
  3. Sale of Debentures
  4. Issue of Debentures

__________should be shown in the Balance sheet until written off.

  1. Discount on Issue of Debenture
  2. Amount of Equity Share Capital
  3. Amount of Preference Share Capital
  4. Amount of Debentures

The balance of Debenture Sinking Fund is transferred to____________________.

  1. Profit and Loss Account
  2. Debenture Redemption Fund Investment Account
  3. General Reserve Account
  4. Capital Reserve Account

DRR is required to be invested to the extent of __________________of the amount of Debentures maturing during the year ending 31st March of that year.

  1. 10%
  2. 15%
  3. 20%
  4. 30%

Annual Instalment in Sinking Fund for Redemption of Debentures is equal to_________.

  1. Face Value of Debentures × Factor in S. F. Table
  2. Amount of Redemption × Factor in S. F. Table × Period of Debentures
  3. Amount of Redemption × Factor in S. F. Table
  4. Amount of Redemption ÷ Factor in S. F. Table

The premium collected on the issue of debentures is transferred to_________.

  1. Profit & Loss Account
  2. General Reserve Account
  3. Securities Premium Account
  4. Capital Redemption Reserve Account

As on 1st April 2020, Supriya Ltd. a company-issued ₹ 20,00,000 15% debentures of ₹100 each at par redeemable at a premium of 10%. Calculate the amount to be transferred to Premium on Redemption of Debentures A/c.

  1. ₹ 2,00,000
  2. ₹ 5,00,000
  3. ₹ 10,00,000
  4. ₹ 8,00,000

Balance of Sinking Fund for the redemption of debentures is_______.

  1. Shown under ‘Long-term Borrowings’ in the balance sheet
  2. Shown under ‘Investments’ in the balance sheet
  3. Shown under ‘Reserves and Surplus’ in the balance sheet
  4. Shown under ‘Current Liabilities’ in the balance sheet

Company cannot sell charged assets until the debentures are ‘repaid, in case of________.

  1. Debentures with fixed charge
  2. Debentures with floating charge
  3. Registered Debentures
  4. Debenture stock

When debentures become due for redemption, the entry is_______________.

  1. Debenture A/c — Dr To Bank A/c
  2. Debenture holders A/c — Dr. To Bank A/c
  3. Debenture A/c — Dr To Debentureholders A/c
  4. Debentureholders A/c — Dr To Debentures A/c

On 31.3.2020, Rohan Ltd. converted its ₹ 50,00,000 12% Debentures into equity shares of ₹ 25 each at par. Calculate the number of Equity Shares issued.

  1. ₹ 2,00,000
  2. ₹ 3,00,000
  3. ₹ 1,00,000
  4. ₹ 6,00,000

Profit on redemption of Debentures is a________.

  1. Revenue Profit
  2. Capital Profit
  3. Operating Profit
  4. Long term gain

For the redemption of debentures, a sinking fund is created out of___________.

  1. Capital reserve
  2. Share capital
  3. Secured loans
  4. Current year profits

Bharat Ltd. issued 50,000 15% debentures of Rs. 1,000 each at Rs. 952 per debenture. The debentures are redeemable in five annual installments of Rs. 200 each. It is decided to write off discount in proportion to the amount of debenture finance usage over the various years. Calculate the amount of Discount on Debentures to be written off in the first year.

  1. ₹ 8,00,000
  2. ₹ 6,40,000
  3. ₹ 4,80,000
  4. ₹ 3,20,000

On 1st January 2015; P Ltd. issued 4,000, 6% debentures of ₹ 100 each at a discount of 10% repayable in 4 years by annual equal installments. Calculate the amount of Discount on the Issue of Debentures to be written off in the third year.

  1. ₹ 16,000
  2. ₹ 12,000
  3. ₹ 8,000
  4. ₹ 4,000

On 1st January 2018; 8-BAlls Ltd. issued 4,000, 6% debentures of ₹ 100 each at a discount of 10% repayable in 4 years by annual equal installments. Calculate the amount of Discount on the Issue of Debentures to be written off in the third year.

  1. ₹ 16,000
  2. ₹ 12,000
  3. ₹ 8,000
  4. ₹ 4,000

The premium payable on debentures is provided out of__________.

  1. Securities Premium
  2. General Reserve Account
  3. Discount on Issue of debentures A/c
  4. Dividend Equilisation Reserve

Hindustan Ltd. issued 50,000 15% debentures of Rs. 1,000 each at Rs. 952 per debenture. The debentures are redeemable in five annual installments of Rs. 200 each. It is decided to write off discount in proportion to the amount of debenture finance usage over the various years. Calculate the amount of Discount on Debentures to be written off in the second year.

  1. ₹ 8,00,000
  2. ₹ 6,40,000
  3. ₹ 4,80,000
  4. ₹ 3,20,000

Till the date of redemption of debentures ‘Premium on Redemption of Debentures appears on the__________.

  1. The asset side of the balance sheet
  2. Credit side of Profit & Loss Account
  3. Liabilities side of balance sheet
  4. The debit side of Profit & Loss Account

Profit on redemption of Debentures transferred to______________.

  1. Revenue Reserve A/c
  2. Profit and Loss A/c
  3. Capital Redemption Reserve A/c
  4. Capital Reserve A/c

Bright Ltd. an unlisted company Issued 10,000 15% debentures of ₹ 100 each at a premium of 10% on 30th June 2018 redeemable on 30th December 2019. How much amount of DRR should be created before redemption of debentures.

  1. ₹ 2,00,000
  2. ₹ 1,50,000
  3. ₹ 2,50,000
  4. ₹ 50,000

Premium on Redemption of Debentures is _______________.

  1. an asset
  2. a liability
  3. an income
  4. a provision

The periodical interest received from an investment against debenture redemption reserve is credited to_________________.

  1. Interest income account
  2. Debenture holders account
  3. Debentures account
  4. Debenture redemption fund account

In the balance sheet of a company, Debenture issued at Premium is shown under_________________.

  1. Share Capital
  2. Secured Loans
  3. Unsecured Loans
  4. Reserves and Surplus

Discount on issue of Debentures is a____________loss.

  1. Capital
  2. Revenue
  3. Regular
  4. Operating

Which of the following statements is false?

  1. Debentures can be redeemed by payment in lumpsum at the end of a specified period.
  2. Debentures cannot be redeemed during the lifetime of the company.
  3. Debentures can be redeemed by payments in annual installments.
  4. Debentures can be purchased in the open market for cancellation.

In the balance sheet of a company, Debentures issued by Company is shown under_______.

  1. Share Capital
  2. Long Term Borrowings
  3. Unsecured Loans
  4. Current Liabilities

As on 1st April 2020, Tejas Ltd. a company-issued ₹ 40,00,000 15% debentures of ₹ 100 each at par redeemable at a premium of 10%. 60% of the debentures are to be redeemed at the end of the 2nd year and the balance at the end of the 3rd year. The board has decided to transfer the minimum required amount to D.R.R. at the end of the first year. Calculate the amount to be transferred to DRR A/c.

  1. ₹ 10,00,000
  2. ₹ 2,00,000
  3. ₹ 6,00,000
  4. ₹ 12,00,000

Debenture holders A/c is _________at the time of redemption.

  1. added
  2. subtracted
  3. debited
  4. credited

On 1st January 2020; the following balances appeared in the books of a company: 14% Debentures: ₹ 16,00,000. Profit & Loss Appropriation Account : ₹ 8,00,000. All debentures were redeemed out of profit at a premium of 10% on 31st December 2020. Calculate the amount of DRR to be created.

  1. ₹ 80,000
  2. ₹ 4,00,000
  3. ₹ 2,40,000
  4. ₹ 3,20,000

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