Commerce MCQs and Answers

81 BIPA with Sudan comes into effect was the news, it is an agreement for–

[A] Investment in a country

[B] Peaceful use of atomic power

[C] Allowing students to visit each other's nation

[D] Allowing people to come for medical treatment

Answer: Investment in a country

82 X and Y are partners sharing profits in the ratio of 4 : 3. They admit a new partner Z and new profit sharing ratio is 7 : 4 : 3. The sacrificing ratio between X and Y will be–

[A] Equal

[B] 4 : 3

[C] 2 : 1

[D] 1 : 2

Answer: 1 : 2

83 Which of the following Sections of the Companies’ Act 1956 relates to the maintenance of proper books of accounts ?

[A] Section-211

[B] Section-217

[C] Section-209

[D] Section-205

Answer: Section-209

84 A company auditor addresses his report to–

[A] Board of Directors

[B] Members

[C] Managing Director

[D] Company Secretary

Answer: Members

85 Cost Audit Report is to be submitted to–

[A] The Company

[B] The Central Government with a copy to the Company

[C] The Central Government

[D] The Company Secretary

Answer: The Central Government with a copy to the Company

86 Internal check is a part of–

[A] Internal Audit

[B] Internal Control

[C] Annual Audit

[D] Standard Audit

Answer: Internal Control

87 Given : Cost Rs. 1,00,000 Scrap Value Rs. 10,000 Span of Life 10 years Rate of depreciation 20% p.a. The amount of depreciation for the first year on the basis of diminishing balance method will be–

[A] Rs. 20,000

[B] Rs. 18,000

[C] Rs. 9,000

[D] Rs. 10,000

Answer: Rs. 18,000

88 Given : Depreciation on the basis of Fixed Instalment Method Rs. 2,000 p.a. Establishment expenses Rs. 5,000 Scrap value Rs. 1,000 Span of life 10 years The cost of assets will be–

[A] Rs. 20,000

[B] Rs. 16,000

[C] Rs. 12,000

[D] None of these

Answer: Rs. 20,000

89 The meaning of written down value is–

[A] Original cost – Scrap value

[B] Book value + Depreciation

[C] Book value – Depreciation

[D] None of these

Answer: Book value – Depreciation

90 At the time of dissolution the loss of the business, will be compensated first of all from–

[A] Capital

[B] Profits

[C] Personal resources of the partners

[D] Donations

Answer: Profits

91 The share of new partner in the profits is 1/5 and his capital is Rs. 20,000. The new profit sharing ratio is 3 : 1 : 1. The share of partners in total capital will be–

[A] 60,000 : 20,000 : 20,000

[B] 80,000 : 20,000 : 20,000

[C] 50,000 : 20,000 : 25,000

[D] None of the above

Answer: 60,000 : 20,000 : 20,000

92 In Balance Sheet, Audit Accounts are audited–

[A] Monthly

[B] Bi-monthly

[C] Annually or half yearly

[D] Quarterly

Answer: Annually or half yearly

93 Company Auditor is responsible–

[A] For directors

[B] For shareholders

[C] For public

[D] For creditors

Answer: For shareholders

94 The Section 80A of the Companies’ Act is related with the redemption of–

[A] Debentures

[B] Redeemable preference shares

[C] Irredeemable preference shares

[D] None of the above

Answer: Irredeemable preference shares

95 “Auditor is not an insurer.” In which of the following cases, the decision has been given ?

[A] The Kingston Cotton Mills Co. Ltd. (1986)

[B] London & General Bank (1895)

[C] Allen Craig & Co. Ltd. (1934)

[D] Irish Woollen Co. Ltd.

Answer: London amp; General Bank (1895)

96 Auditor shall be punished with imprisonment for a maximum period of ……… under Section 539 for falsification in the books of accounts.

[A] 3 years

[B] 5 years

[C] 7 years

[D] 9 years

Answer: 7 years

97 Consider the following– Amortization refers to writing off the value of

(1) tangible assets

(2) intangible assets,/

(3) fictitious assets

Which of the above is/are correct ?

[A] 1 and 2

[B] 2 and 3

[C] 1 only

[D] 2 only

Answer: 2 only

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