NET, IAS, State-SET (KSET, WBSET, MPSET, etc.), GATE, CUET, Olympiads etc.: Commerce MCQs (Practice_Test 29 of 99)
Doorsteptutor material for competitive exams is prepared by world's top subject experts: get questions, notes, tests, video lectures and more- for all subjects of your exam.
- First Auditors of a company are appointed by Board of Directors
- Within gestation period
- After commencement of the production
- Within one month of the date of registration of the company
- Within six months of the date of registration of the. Company
- Consider the following statements: The books of accounts and other books and papers of every company shall be open to inspection during business hours by the following:
- The Registrar of Companies
- Such officers of the government as may be authorized by the Central Government in this behalf.
- Such officers of the Securities
- Exchange Board of
- India as may be authorized by it.
- Which of the above is/are correct when such inspection is made without giving any previous notice to the company?
- 1 only
- 1 and 2
- 2 and 3
- 1,2 and 3
- Consider the. Following statements: The National Advisory Committee on Accounting Standards shall consist of
- One member each to be nominated by ICAI, ICWAI and ICSI
- One representative each of the Central Government, RBI and Comptroller and Auditor General of India.
- A professor of Accountancy, Finance or Business Management from any university or a deemed university.
- Which of the statements given above is/are correct?
- 1 only
- 1 and 2
- 1,2 and 3
- 2 and 3
- Section 161 (1) of the Companies Act requires the Annual Report of the companies to be signed by which of the following?
- Auditor and Company Secretary
- Chairman and Company Secretary
- Managing Director and Company Secretary
- General Manager and Company
- Secretary
- Assertion (A) : Improvement in the social environment benefits both society and business.
- Reason (R) : Society must pay for the social environment of business through higher prices.
- Both A and R are individually true and R is the correct explanation of A
- Both A and R are individually true but R is not the correct explanation of A
- A is true but R is false
- A is false but R is true
- Assertion (A) : The companies prefer to issue debt securities in their private placements.
- Reason (R) : It helps them to go for trading on equity.
- Both A and R are individually true and R is the correct explanation of A
- Both A and R are individually true but R is not the correct explanation of A
- A is true but R is false
- A is false but R is true
- Assertion (A) : Internal check is a system of organizing accounting function whereby duties of different clerks are arranged in such a way that work of one person is automatically checked by another.
- Reason (R) : Fraud is not possible without collusion between two or more persons, and at the same time possibilities of errors are reduced to a minimum by internal check.
- Both A and R are individually true and R is the correct explanation of A
- Both A and R are individually true but R is not the correct explanation of A
- A is true but R is false
- A is false but R is true
- Assertion (A) : Vouching is an inspection by auditor of documentary evidence supporting and substantiating transactions in the books of accounts.
- Reason (R) : A thorough vouching system reduces the need for verification of assets & liabilities.
- Both A and R are individually true and R is the correct explanation of A
- Both A and R are individually true but R is not the correct explanation of A
- A is true but R is false
- A is false but R is true
- Assertion (A) : Accounting information refers to only those events which are concerned with entity.
- Reason (R) : Accounting information is presented in the form of financial statements.
- Both A and R are individually true and R is the correct explanation of A
- Both A and R are individually true but R is not the correct explanation of A
- A is true but R is false
- A is false but R is true
- Assertion (A) : An agreement of a trial balance is not a conclusive evidence of accuracy of ledger posting.
- Reason (R) : A ledger may contain mistakes relating to errors of commission.
- Both A and R are individually true and R is the correct explanation of A
- Both A and R are individually true but R is not the correct explanation of A
- A is true but R is false
- A is false but R is true
- Assertion (A) : In a fund flow statement, an issue of shares for an asset is to be disclosed on its both sides.
- Reason (R) : The fund flow statement discloses what is not disclosed by the balance sheet.
- Both A and R are individually true and R is the correct explanation of A
- Both A and R are individually true but R is not the correct explanation of A
- A is true but R is false
- A is false but R is true
- Assertion (A) : Matters which cannot be decided because of limitation of authority may be referred to superiors.
- Reason (R) : Maintenance of intended delegation requires that decisions without authority of individual be made by them.
- Both A and R are individually true and R is the correct explanation of A
- Both A and R are individually true but R is not the correct explanation of A
- A is true but R is false
- A is false but R is true
- Consider the following statements: Redeemable Preference Shares can be redeemed
- out of the proceeds of new issue of shares for the purpose.
- out of profits available for dividend.
- out of sale proceeds of the assets.
- out of the grants received from the government.
- Which of the statements given above are correct?
- 1 and 2
- 3 and 4
- 1 and 3
- 1,2, 3 and 4
- On 1.4. 2002, the position o X Company Ltd. Was as follows On 31.3. 2003, the company՚s ship sank and all records and the cash were sunk. However, it was revealed that creditors and debtors were 20% more than at
- 4.2002 position. Stock and Bank was at the same level. The current ratio-had always been
- What was the amount of cash sunk on 31.3. 2003?
- ₹ 5,000
- ₹ 15,000
- ₹ 10,000
- ₹ 20,000
- The following is the Balance Sheet of Z company: What is the absolute liquidity ratio of the company?
- 2: 1
- 1.06: 1
- 0.92: 1
- 1.90: 1