Competitive Exams: Commerce MCQs (Practice-Test 53 of 99)

  1. In life insurance, the risk insured is

    1. certain to occur and also the timing of its occurrence is known

    2. certain to occur, but its timing of occurrence is not known

    3. not certain to occur and also the timing of its occurrence is not known

    4. not likely to occur

  2. Which one of the following risks is not insured by the Export Credit and Guarantee Corporation?

    1. The risk of non-payment by the foreign buyer

    2. The risk that the importer may return the goods on the ground of lower quality

    3. The political risk that the import license may be revoked

    4. The risk of war, revolution. Etc. in the buyer's country

  3. Social responsibility of business assumes considerable importance towards

    1. owners and workers

    2. consumers and community

    3. government and nation

    4. All the above

  4. Which one of the following is NOT a useful tool in decision-making?

    1. Annual return

    2. linear programming

    3. Sales forecasts

    4. Operation research

  5. A statutory corporation is one, which COCS into being by

    1. Registration under Companies Act. I 956

    2. virtue of enactment of a special Act

    3. registration under the enforceable Act operating in India

    4. the entrepreneurial effort of the government

  6. Match List I with List II and select the correct answer

    List-I List-II
    1. Inspection of books of account under Section 209 A of the Companies-Act 1956

    2. Constitution of National Advisory Committee on Accounting Standards

    3. Books of account

    4. Reasons for failure to buy back shares

    1. Central Government

    2. Registrar of Companies

    3. Registered office

    4. The ICAI

    5. Directors Report

    • A
    • B
    • C
    • D
      • 2
      • 1
      • 3
      • 5
      • 3
      • 1
      • 2
      • 4
      • 2
      • 4
      • 3
      • 5
      • 3
      • 4
      • 2
      • 1
  7. Every auditor appointed under Section 224 (1) of the Companies Act, 1956 shall inform in writing as to whether he has accepted or refused to accept the appointment. Such an intimation shall be given by him to the

    1. company within 30 days of receipt from the company of the intimation of his appointment

    2. Company Law Board within 30 days of receipt from the company of the intimation of his appointment

    3. company within 7 days of receipt from the company of the intimation of his appointment

    4. Registrar within 30 days of receipt from the company of the intimation of his appointment.

  8. Audit Committee shall act in accordance with the terms of reference to be specified by

    1. Statutory Auditors

    2. SEBI

    3. Beard of Directors

    4. Central Government

  9. X is proposed to be appointed as the auditor of ABC Co. Ltd. At the ensuing AGM in place of the retiring auditor Y. This requires

    1. a special resolution and approval of the Company Law Board

    2. a special notice

    3. an ordinary resolution and approval of the Company Law Board

    4. a special resolution and approval of

    Central Government

  10. In the case of an auditor appointed under Section 619 of the Companies Act, 1956 by the Comptroller and Auditor-General of India, the remuneration shall be fixed by the

    1. company in general meeting

    2. Comptroller and Auditor General of India

    3. Comptroller and Auditor General of India in consultation with the Central Government

    4. Company Law Board

  11. Financial year of a company shall not exceed

    1. calendar year

    2. 15 months

    3. 18 months with special permission of Registrar of Companies

    4. 15 months with special permission of

    Registrar of Companies

  12. Secretarial Compliance Report is

    1. optional for a company

    2. required when a company does not have a whole-time secretary

    3. required If a company is not required to employ a whole-time secretary and has a paid-up share capital of Rs. 10 lakh or more

    4. required for, companies as are notified by the Central Government

    • Assertion (A): There is no error when the totals of the debit side and the credit side of the Thai Balance are equal.
    • Reason (R): Trial Balance is a two-column statement showing names and balances of all the accounts in the order in which they appear in the ledger.
    1. Both A and R are true and R is the correct explanation A

    2. Both A and H are true but R is NOT the correct explanation of A

    3. A is true but R is false

    4. A is false hut R is true

    • Assertion (A): Companies are required to use Written down Value (WDV) method and the rates specified in Schedule XIV to the Companies Act.
    • Reason (R): A change from WDV method dl providing depreciation to Straight line

    Method (SLM) should he made if it is considered that the change would result in a more appropriate preparation or presentation of the financial statements of the company.

    1. Both A and R are true and R is the correct explanation A

    2. Both A and H are true but R is NOT the correct explanation of A

    3. A is true but R is false

    4. A is false hut R is true

    • Assertion (A): Section 205 of the Companies Act makes it obligatory for every company to make provision for depreciation.
    • Reason (R): Depreciation is a charge against revenue.
    1. Both A and R are true and R is the correct explanation A

    2. Both A and H are true but R is NOT the correct explanation of A

    3. A is true but R is false

    4. A is false hut R is true