NET, IAS, State-SET (KSET, WBSET, MPSET, etc.), GATE, CUET, Olympiads etc.: Commerce MCQs (Practice_Test 54 of 99)
Glide to success with Doorsteptutor material for competitive exams : get questions, notes, tests, video lectures and more- for all subjects of your exam.
- Assertion (A) : Existence of secret reserve contradicts the disclosed network of a business.
- Reason (R) : Secret reserve helps promote managerial efficiency.
- Both A and R are true and R is the correct explanation A
- Both A and H are true but R is NOT the correct explanation of A
- A is true but R is false
- A is false hut R is true
- Assertion (A) : Entrance fees in case of non-profit concerns can be treated as revenue receipt or capital receipt.
- Reason (R) : Some accountants consider entrance fees to be recurring in nature, whereas others consider it to be nonrecurring.
- Both A and R are true and R is the correct explanation A
- Both A and H are true but R is NOT the correct explanation of A
- A is true but R is false
- A is false hut R is true
- Assertion (A) : Performance ratios show where we are goin.
- Reason (R) : Balance Sheet ratios show how we stand.
- Both A and R are true and R is the correct explanation A
- Both A and H are true but R is NOT the correct explanation of A
- A is true but R is false
- A is false hut R is true
- Assertion (A) : One single primary ratio that measures the final outcome of all recorded business activities is ROI.
- Reason (R) : In practice, however variations are also found in the ratio because capital and return are subject to different interpretations by firms.
- Both A and R are true and R is the correct explanation A
- Both A and R are true but R is NOT the correct explanation of A
- A is true but R is false
- A is false hut R is true
- Assertion (A) : According to Accounting Standard 3 (revised) of the Institute of Chartered Accountants of India, a Cash Flow Statement should be divided into three heads cash flows from operating activities, cash flows from investing activities and cash flows from financing activities.
- Reason (R) : Operating activities involve income determining items and relate to changes in current assets and liabilities; investing activities concern changes in non-current assets and financial activities concern changes in non-current liabilities and shareholder & equity.
- Both A and R are true and R is the correct explanation A
- Both A and H are true but R is NOT the correct explanation of A
- A is true but R is false
- A is false hut R is true
- Assertion (A) : It is the duty of the auditor to see that costing records as required under Section 209 (1) (d) of the Companies Act, 1956, have been maintained by certain class of companies.
- Reason (R) : Mere-maintenance of cost records does not make manufacturing companies cost-effective.
- Both A and R are true and R is the correct explanation A
- Both A and H are true but R is NOT the correct explanation of A
- A is true but R is false
- A is false hut R is true
- Assertion (A) : Analytical Review is not the part of Company Statutory Audit.
- Reason (R) : Analytical Review goes beyond true and fair presentation of the financial position.
- Both A and R are true and R is the correct explanation A
- Both A and H are true but R is NOT the correct explanation of A
- A is true but R is false
- A is false hut R is true
- Assertion (A) : Management audit is a statutory audit.
- Reason (R) : Management audit is performed through innovative ideas.
- Both A and R are true and R is the correct explanation A
- Both A and H are true but R is NOT the correct explanation of A
- A is true but R is false
- A is false hut R is true
- Assertion (A) : The Companies Act. 1956 requires that internal audit must be carried out by a Chartered Accountant.
- Reason (R) : It is to help the management to protect the interests of the shareholders and the society.
- Both A and R are true and R is the correct explanation A
- Both A and H are true but R is NOT the correct explanation of A
- A is true but R is false
- A is false hut R is true
- Assertion (A) : Certificate of Origin is an export-related document and it is issued by the Chamber of Commerce.
- Reason (R) : Certificate of Origin is used by importer to take delivery of goods.
- Assertion (A) : A company registered under the Companies Act, 1956 is a judicial person distinct from its members.
- Reason (R) : Corporate veil cannot be lifted.
- Both A and R are true and R is the correct explanation A
- Both A and H are true but R is NOT the correct explanation of A
- A is true but R is false
- A is false hut R is true
- Assertion (A) : The doctrine of indoor management does not give absolute protection to outsiders who deal with a company.
- Reason (R) : Lithe majority of members have their way, the minority has its say.
- Both A and R are true and R is the correct explanation A
- Both A and H are true but R is NOT the correct explanation of A
- A is true but R is false
- A is false hut R is true
- Assertion (A) : The powers of Board of Directors that are to be exercised by Board only at its meeting cannot go beyond those prescribed under Section 292 of the Companies Act, 1956.
- Reason (R) : The members in general meeting cannot impose restriction on the exercise of powers by the Board of Directors.
- Both A and R are true and R is the correct explanation A
- Both A and H are true but R is NOT the correct explanation of A
- A is true but R is false
- A is false hut R is true
- Accounting is generally understood as
- summarization of business transactions
- language of the business
- source of business information
- means of communication
- Select the correct answer using the codes given below:
- 1 only
- 1 and 2
- 2 and 3
- 1.2,3 and 4
- Which one of the following types of information, a creditor would be interested to gather while reading Annual Reports of an enterprise?
- Profitability
- Liquidity
- Continuity
- Solvency