100 Solved MCQs of Mgt101 Financial Accounting pdf

26. Variable costing is also called
a. Direct costing
b. Absorption costing
c. Both a & b
d. None of the above
Answer: (b)

27. ___ has a residual interest in corporate profits.
a. Debenture Capital
b. Preference Share Capital
c. Equity Share Capital
d. Both a & b
Answer: (c)

28. Statutory books are required to be maintained by a Companies Act.
a. 1932
b. 1948
c. 1949
d. None of the above
Answer: (d)

29. Intangible assets
a. Have physical existence
b. Have no physical existence
c. Which can be seen?
d. None of the above
Answer: (b)

30. The term ‘depreciable assets’ refers to:
a. Tangible assets
b. Tangible fixed assets
c. Intangible assets
d. None of the above
Answer: (b)

31. Prevision for taxation is shown under the head ___ in the Balance Sheet.
a. P & L
b. Reserves
c. Provision
d. All of the above
Answer: (a)

32. All dividends must be paid within ___ days of its declaration.
a. 37
b. 42
c. 48
d. 52
Answer: (a)

33. MODVAT was introduced by incorporating Rules 57A to 57J in the Central Excise Rules ___
a. 1932
b. 1944
c. 1952
d. None of the above
Answer: (d)

34. MODVAT was introduced in the year
a. 1980
b. 1989
c. 1992
d. None of the above
Answer: (d)

35. Which of the following is the distribution of profits to shareholders?
a. Amortization
b. Effective Capital
c. Dividend
d. Provisions
Answer: (c)

36. Capital required to maintain routine operations is called
a. Fixed Capital
b. Working Capital
c. Fixed assets
d. All of the above
Answer: (b)

37. Short term obligations that have to be met within the next twelve months is called
a. Current Assets
b. Working capital
c. Secured loans
d. Current liabilities
Answer: (d)

38. ___ denotes the loss in value on an asset due to wear and tear.
a. Provision of taxation
b. Dividend
c. Depreciation
d. None of the above
Answer: (c)

39. Managerial remuneration is payable to managerial personnel within the overall ceiling prescribed in the section of the Companies Act, ___.
a. 1956
b. 1959
c. 1947
d. 1955
Answer: (a)

40. The Income Tax Act ___
a. 1958
b. 1968
c. 1972
d. 1961
Answer: (d)

41. Expand MAT
a. Modified Annual Tax
b. Minimum Alternative Tax
c. Maximum Annual Tax
d. Maximum Alternative Tax
Answer: (a)

42. An Annual Report comprises
a. Director’s Report
b. Auditor’s Report
c. Annual Account
d. All of the above
Answer: (d)

43. Loans obtained against hypothecation of an asset is called
a. Unsecured Loan
b. Capital
c. Secured Loan
d. All of the above
Answer: (c)

44. ICAI has issued Accounting Standard- 6 (AS-6) on:
a. Material charges
b. Dividend
c. Depreciation Accounting
d. All of the above
Answer: (c)

45. It is a part of the total equity of a company. The holders of these shares enjoy a certain privilege is called
a. Equity Share capital
b. Preference Share capital
c. Capital Structure
d. Leverage
Answer: (a)

46. ‘It’ is an artificial account that appears in the Trial Balance to account for undetected errors. Here ‘It’ stands for:
a. Fixed A/c
b. Reserve A/c
c. Suspense A/c
d. None of the above
Answer: (c)

47. Which of the following is arrived at by deducting the direct cost of goods sold from sales proceeds?
a. Net profit
b. Gross profit
c. Balance Sheet profit
d. All of the above
Answer: (b)

48. Which of the following is a document supporting cheques deposited into the bank?
a. Bank statement
b. Passbook
c. Cashbook
d. Pay-in-slip
Answer: (d)

49. Folio means the page of
a. A Journal
b. A Ledger
c. Both a & b
d. None of the above
Answer: (b)

50. Furniture Account is
a. Real A/c
b. Nominal A/c
c. Personal A/c
d. Representative Personal A/c
Answer: (a)