Competitive Exams: Commerce MCQs (Practice-Test 51 of 99)

  1. The approval of which one of the following authorities is required to shift registered office of the company iron the jurisdiction of one Registrar of Companies to another Registrar of Companies within a State?

    1. Company Law Board

    2. Central Government

    3. Regional Director

    4. Registrar of Companies

  2. Body corporate under the Companies Act, 1956 includes

    1. cooperative society

    2. company incorporated outside India

    3. corporation sole

    4. any other body corporate. Not being a company, which the Central

    Government may specify

  3. Which one of the following is the correct statement?

    1. One can be a shareholder without voting right

    2. A preference shareholder can exercise voting right from the date of allotment

    3. An equity shareholder has no voting right

    4. A debenture holder can vote at annual general meeting

  4. A person shall not he appointed as Director if he is found to be of unsound mind by

    1. the company

    2. the company court

    3. a court of competent jurisdiction and the finding is in force

    4. the shareholders

  5. Which one of the following statutory committees needs to be constituted in a listed company?

    1. Tender Committee

    2. Audit Committee

    3. Management Committee

    4. Recruitment Committee.

  6. Which one of the following pairs is NOT correctly matched?

      • Suppression of invoices
      • Window dressing
      • Overcharging depreciation
      • Secret reserves
      • Omission of cash receipts from debtors
      • Understatement of sales
      • Omission of credit sale

    Understatement of debtors

  7. The main purpose of auditing is to

    1. detect accounting offences and to punish the offender

    2. prepare and authenticate the accounts

    3. prepare the accounts and authenticate their true and fair view

    4. certify the financial position of the business

  8. Statement of Standard Auditing Practices (SAPs) are important while discharging the auditing function by a member of the ICAI in case of a company, because SAPS are

    1. prescribed by the ICAI

    2. contained in the Companies Act, 1956

    3. Approved by the Department of Company Affairs.

    4. approved by the Central Government in consultation with Comptroller

    Auditor General

  9. The selection of items, to be included in the audit on a subjective basis without consideration of sample size or method of selection, is

    1. probability sampling

    2. systematic sampling

    3. random sampling

    4. judgment sampling

  10. Internal audit report is submitted to

    1. Government

    2. Shareholders

    3. Creditors

    4. Board of Directors

  11. The scope of audit in a partnership firm, is governed by

    1. partnership act

    2. partnership deed

    3. agreement between partnership firm and auditor

    4. number of partners of the firm

  12. If an auditor does something wrongfully in the performance of his duties resulting in financial loss to the company, he will be held guilty of

    1. civil negligence

    2. misfeasance

    3. criminal negligence

    4. financial irregularity

  13. What are the aspects to be considered while qualifying the audit report on the accounts of a company?

    1. An item requiring specific disclosure under the Companies Act is not so disclosed

    2. Where the auditor has not been able to form an opinion due to his inability to obtain sufficient, appropriate evidence, information and, explanation

    3. An auditor realizes that items in a financial statement are misstated to such an extent that the financial statement does not give a true and fair view

    Select the correct answer using the codes given below:

    1. 1 only

    2. 1 and 2

    3. 2 and 3

    4. 1 and 2, 3

  14. Match the List I with List II and select the correct answer:

    List-I List-II
    1. Reduction of share capital

    2. Reissue of redeemed debentures

    3. Branch audit

    4. Presentation of annual accounts

    1. Sec. 100

    2. Sec. 228

    3. Sec. 121

    4. Sec. 210

    • A
    • B
    • C
    • D
      • 4
      • 2
      • 3
      • 1
      • 1
      • 3
      • 2
      • 4
      • 4
      • 3
      • 2
      • 1
      • 1
      • 2
      • 3
      • 4
  15. Match List with List II and select the correct answer:

    List-I List-II
    1. Statutory report

    2. Prohibition of tax-free remuneration

    3. Underwriting commission

    4. Issue of shares at premium

    1. Sec. 200

    2. Sec. 165

    3. Sec. 78

    4. Sec. 76

    • A
    • B
    • C
    • D
      • 4
      • 1
      • 2
      • 3
      • 2
      • 3
      • 4
      • 1
      • 4
      • 3
      • 2
      • 1
      • 2
      • 1
      • 4
      • 3