Sr. No.

Questions A
1 As per the banking regulations Act, 1949, A bank can engage in the borrowing and raising
following banking business. money

2 Every banking company in India is required to transfer at least 10%

_________ of its current year's profit to the reserve fund

3 a banking company can pay dividend on its shares _______ after writing off all its
capitalised expenses
including preliminary
expenses

4 every non-scheduled bank has to maintain a cash reserve of at 1%

least _________ of its demand and time liabilities in India
5 the general ledger of a bank contains _______ all personal, real and
nominal accounts

6 rebate on bill discounted is _______ discount received by

bank but not earned

7 the first term under 'assets' in the balance sheet of a bank is cash and bank balance
_______ with RBI

8 the items under 'liabilities' in the balance sheet of a bank are capital, reserves &
shown in the following order _______ surplus, borrowings,
deposits

9 Bills for collection are shown in _______ balance sheet of a bank

under assets

10 the figures in the final accounts of a bank are shown in the nearest rupee
_______
11 capital is classified under Authorised, Issued, Subscribed, called up nationalised banks
etc. For______
12 the items under 'deposits' in schedule 3 of the balance sheet of a savings bank deposits,
bank are shown in the following order ________ demand deposits, term
deposits

13 the items under 'Reserves and Surplus' in schedule 2 of the balance statutory reserves,
sheet of a bank are shown in the following order capital reserves, shares
premium
14 bills payable are shown in the balance sheet of a bank _______ in the notes forming part
of balance sheet of a
bank under contingent
liabilities

15 bills purchased and discounted are shown in the balance sheet of a notes forming part of
bank under in the _______ balance sheet of a bank
under contingent
liabilities

16 inter - office adjustments (net) will appear in the balance sheet of a under ' other liabilities'
bank _______ only

17 discount on bills in shown by a bank in schedule of ________ advances

18 surplus on revaluation should be treated as _________ other income
19 interest payable on deposits which is accrued but not due is shown deposits
under________
20 unclaimed dividend is shown by a bank under _______ deposits
21 endorsements are shown by bank under _____________ deposits
22 a banking company is statutorily required to transfer _______% of 10
its profits to its reserve fund, each year before declaring dividends
of transferring profit to the central government

23 banks should, classify an account as NPA only if the interest 30

charged during any quarter is not serviced fully within
___________ days form the end of the quarter.
24 A ________ asset would be one which has remained NPA for a sub-standard
period of less than or equal to 12 months.
25 banks should make general provision for standard assets in the 0.25%
form of direct advances to agricultural and SME sectors at
__________
26 what percentage of provision is required on performing assets? 10
27 in the event of loss covered by re-insurance _______ the insured has to make
a claim for proportionate
amount against the
original insurer and the
re-insurer

28 Every insurance company in India is required to close its accounts 31st December
every year on _________
29 the number of schedules to accompany the financial statements of 10
insurance companies in India are _________
30 the commission received from the re-insurer is called ________ commission on re-
insurance ceded

31 the commission paid by the re-insurer is called __________ commission on re-

insurance ceded

32 in fire insurance business, ______ percentage of premium income 100

is carried forward as provision for and the balance is transferred to
profit and loss account
33 in marine insurance business, _______ percentage of premium 100
income is carried forward as provision for and the balance is
transferred to profit and loss account
34 Insurance business is controlled by ______ Insurance Act, 1938

35 For the settlement of claim, insurance company ascertains the

genuineness of the claim

36 In case of fire insurance, the provision required to make against 40%

unexpired risks is
37 As per IDA Regulations, an insurance company is required to Revenue Account
prepare
38 Insurance commission on general insurance policies issued during forty per cent of the
the year cannot exceed premium
39 Insurance commission on general insurance policies renewed forty per cent of the
during the year cannot exceed premium
40 An insurer carrying on General insurance business shall comply Schedule A
with the requirements of the following schedule of Insurance
Regulatory and Development Authority (Preparation of Financial
statements and Auditor's Report of Insurance Companies)
Regulations,
41 Receipts and Payment Account (Cash Flow statement) of an need not be prepared
Insurance Company

42 Premium shall be recognised as income when received

43 Unrealised gains / losses arising due to changes in the fair value of shall be ignored
listed equity shares of a insurance company

44 In the Financial Statements of an Insurance Company, Advances

Underwriting commitments outstanding are shown as
45 Reserve deposits with ceding companies is shown in the balance Current Assets
sheet of an Insurance Company under
46 Outstanding Premiums is shown in the balance sheet of an Current Assets
Insurance Company under
47 Deposit with Reserve Bank of India u/s 7 of Insurance Act, 1938 is Current Assets
shown in the balance sheet of an Insurance Company under

48 Premium received in advance is shown in the balance sheet of an Current Assets

Insurance company under
49 Claims outstanding is shown in the balance sheet of an Insurance Current Assets
Company under
50 Agents' Balances is shown in the balance sheet of an Insurance Current Assets
Company under
51 Claims made in respect of general insurance contracts shall be every year
recognised on an actuarial basis

52 Reserve for Unexpired Risk is shown in the balance sheet of a Reserves & Surplus
General Insurance Company under
53 IFRS means ________ Interim Financial
Reporting Standards

54 total number of International Accounting Standards (IAS) is ______ 41

55 Total number of International Financial Reporting Standards is 41

_______
56 the sources of regulation which comprise the regulatory Legislation
framework for financial reporting include ________
57 the abbreviation 'GAAP' stands for ________ globally accepted
accounting practice
58 standards issued by the International Accounting Standards Board Financial Reporting
(IASB) are known as_______ Standards (FRSs)

59 the body to which the International Accounting Standards Board the IFRS advisory Council
(IASB) us responsible with _________

60 one of the main advantages of standardisation in financial comparability between

reporting is ________ accounting periods and
between entities

61 the role of the IFRS Advisory Council is to _______ chair the meetings of the
IASB

62 the word 'entity' as used by the IASB refers to _______ Profit - oriented
organisations only
63
The Schedule III prescribes vertical form of Balance Sheet in part.
4
64
Calls in arrears is to be _____.
shown as debtors
65
The final accounts of companies are to be prepared in accordance Schedule VI
with the provision of _____ of the Companies Act.

66 The additional information for specific items specified in Schedule disclosed

III should be _____ to the extent applicable.
67 The _____ value of investment should be indicated by way of a
note. market
68 The balance in Share Forfeiture Account after reissue of forfeited General reserve
shares is to be shown as _____.
69
The exchange difference for repayment of liability relating to Reserve & Surplus
purchase of fixed assets is to be disclosed as change on _____.

70 The amount of debtors due for more than _____ months is to be five
shown separately.
71 Current liabilities means liabilities payable within _____ months six
form the date of Balance Sheet.
72 Fixed deposits with banks should be shown as _____. bank loan
73 Immovable properties held for companies operation is to be shown
as _____. investments
74

Debit balance in Profit & Loss Account can be shown as _____. loans & advances
75 Uncalled amount on shares held as investment is shown under the
heading _____. contingent liability,
76 Loose tools are shown under _____ assets. current,
77 Bills receivable is shown under _____. current assets
78
Arrears of preference dividend is shown under _____ liabilities. contingent liability
79 Unclaimed dividend is shown under ________. current liabilities
80 Profit and Loss of a company must be as per part _____ of III
schedule III of Companies Act.
81
Net Block is Gross Block less _____. current assets
82 The liabilities of companies are divided _____ needs. 4
83 The assets of companies are divided in _____ heads. 5
84 In Balance Sheet, securities premium should be shown under
_____. share capital
85 Which of the following is not an example of fixed assets ? plant & machinery
86 Which is deducted from share capital to get paid up capital? calls in arrears
87 Final dividend can be declared by _____. shareholders only
88 Recommendation and declaration is necessary for _____. final dividend
89 Following is an appropriation of profit : interest on loan
90 added to paid up share
Forfeited shares is _____.
capital
91 The company has 5% Government Securities having face value of
₹1,00,000 and cost ₹95,000. The interest on Government
Securities will be _____. ₹ 5,000
92
Profit and Loss Account of a company must be as per _____. part II of schedule III of
Companies Act
93 Following is not a secured loans : debentures
94 A company has to spend in CSR 10% of N.P.
95 If the company fails to comply with CSR obligations the penalty is
not less than ₹ 20,000
96
Donating time towards a community is a
Ethical responsibility
97 The term ‘Ethics’ comes from Greek word
98
Ethical behaviour distinguishes
Right from wrong
99 Ethical behaviour should be practiced with Customers
100 Ethical principles are Well designed
101 Unethical behaviour can Cost the company
102 The components of workplace ethical behaviour are Honesty
103
Ethical behaviour ensures
Customer loyalty
104 Ethical behaviour encourages Good actions
105 Ethics is Predecessor of law
106 In India CSR is made mandatory w.e.f. 1–04–2013
107 A company has to spend in CSR 10% of N.P.
108 CSR is governed by section of Companies Act 2013 135
109 If the company fails to comply with CSR obligations the penalty is
not less than 20,000
110
Donating time towards a community is a
Ethical responsibility
111 Accounting and finance need Legal rules only
112 Emphasis on short term
Reasons for unethical behaviour include
results
113 Principles of Ethical behaviour include Integrity
114 Misappropriation of assets may take place At Jr. level
115 Misappropriation of
Charging cost of family dinner to the company is
assets
116
Principles of Accounting and Finance ethics include
Integrity
117
Rule–based accounting standards Adds excessive
complexity
118
An appropriate principles based approach must be
Broad in its scope
119
Rules–based approach provides
Room for judgement
120 In principles based approach the accountant has No discretion
121
ASB is constituted by
ICAI
122 ASB is constituted in 1977
123 The draft of Accounting Standard is circulated to SEBI
124 Revised code ensures compliance of Integrity
125 Professional
The code of Ethics applies to
Appointments
126 The ethical issues faced by the Accountants include Accuracy
127 Satyam was audited by Price waterhouse
128
The reasons for unethical reporting include
Self interest
129 Effects of unethical behaviour are Law suits
130 Loss of tax revenue to
Unethical behaviour results in
the Government
131
Unethical reporting can be checked by
Ethics education
132 Code of Ethics sets out Company values
133
Ethical code is needed to
Articulates the values
134 The purposes of code of Ethics are Compliance
135
Code of Ethics
Guides the employees
136 Whistle blowers are like : Eyes of public
137 A person who comes forward and shares his knowledge on wrong
doing is Whistle blower
138 A Whistle–blower could be an employee
139
Whistle blowing Can deal with
misconduct
140 protecting against
Whistle blower should be supported by
termination
141 Study of what a person actually believes is Descriptive ethics
142 Inquiry into what should be evaluated is Descriptive ethics
143
Ethics can be applied to
Journalism
144 makes you more
Ethics
successful
145
Professional ethics
Increases goodwill
146 for the purpose of cash flow statement, cash includes_____ only cash

147 for the purpose of cash flow statement, ' cash equivalent' bank deposit for 30 days
includes__________
148 refund of income tax is cash inflow from investing
activities
149 cashflows arising from transactions in a foreign currency should be at the date of balance
reported in rupees, by applying the exchange rate sheet

150 unrealised gains or losses arising from changes in foreign exchange should be ignored
rates due to valuation on balance sheet date
151 Interest capitalised as fixed assets should be shown as cash
inflow from investing
activity

152 Tax on capital gains on sale of fixed assets should be shown as cash
outflow from financing
activities

153 Purchase of a business concern by means of issue of shares should be shown as cash
inflow from investing
activity

154 Conversion of debt into equity should be shown as cash

inflow from investing
activity

155 depreciation (a) is deducted from

book profits to
determine the cash from
operations

156 Amount of Goodwill written off (a) is deducted from

book profits to
determine the cash from
operations

157 Cash paid to suppliers of raw materials will be shown in the Cash Operating cash flow
Flow Statement is
158 .Cash payment to acquire a fixed asset, say, machinery will be Operating cash flow
shown in the Cash FloW Statement
159 Cash proceeds from issuing shares at a premium will be shown in Operating cash flow
the Cash Flow Statement as
160 cheques received from debtors will be shown in the cash flow Operating cash flow
statement as
 B C D Answers
Dealing in bills of carrying on transacting all of the above D
exchange, hundies, every kind of guarantee
promissory notes, and indemnity business
etc.

25% 30% 40% B

after charging after charging bad debts before charging A

depreciation on its where adequate depreciation on its
investments provisions has been made investments and
to the satisfaction of the writing off all its
auditor capitalised expenses

2% 3% 4% C

all personal accounts all real and nominal the control accounts of D
accounts all personal, real and
nominal ledgers
discount earned by rebate allowed by discount charged by A
bank but not customers on bills bank on bills
received discounted discounted
balances with banks investments advances A
and money at call
and short notice

deposits, capital, capital, reserves and borrowings, deposits, C

reserves and surplus, deposits, capital, reserves and
surplus, borrowings borrowings surplus

balance sheet of a balance sheet of a bank in the notes forming D

bank under liabilities under both assets and part of balance sheet
liabilities of a bank under
contingent liabilities

rupee and paise thousands ₹ ₹ Hundreds C

foreign banks other than all banks C

nationalised/foreign banks
demand deposits, term deposits, demand demand deposits, term B
savings bank deposits, savings bank deposits, savings bank
deposits, term deposits deposits
deposits

capital reserves, statutory reserves, shares shares premium, A

statutory reserves, premium, capital reserves statutory reserves,
shares premium capital reserves
in the schedule of in the schedule of deposits in the schedule of B
the other liabilities advances
and provisions

schedule of other schedule of deposits schedule of advances D

liabilities and
provisions

under 'other assets' either under 'other both under 'other C

only liabilities' or 'other assets' liabilities' or ' other
assets, as contra
interest earned other income interest expanded B
capital reserves statutory reserve revenue reserve B
advances other liabilities contingent liabilities C

advances other liabilities contingent liabilities C

advances other liabilities contingent liabilities D
20 30 15 B

60 90 180 C

standard loss doubtful A

1% 2% 0.40% A

40 0.4 25 C
the insured has to the re-insurer has to make the insured has to D
make a claim for full a claim for full amount make a claim for full
amount against the against the original insurer amount against the
re-insurer original insurer

30th September 30th June 31st March D

15 20 25 B

commission on re- Commission on direct None of the above A

insurance accepted business

commission on re- Commission on direct None of the above B

insurance accepted business

50 25 10 B

50 25 10 A

Insurance Rules, IRDA Regulations, 2002 all of the above D

1939
ensures completion both (a) & (b) None of the above C
of the necessary
formalities

50% 100% 30% B

Profit & loss account Balance Sheet all of the above D

five per cent of the fifteen per cent of the None of the above C
premium premium
five per cent of the fifteen per cent of the None of the above C
premium premium
Schedule B Schedule C Schedule D B
need to be prepared need to be prepared as need to be prepared as C
as per AS 3 Indirect per AS 3 Direct Method per special format
Method prescribed by IRDA
when due when received or due when received or due B
whichever is earlier whichever is later

shall be deducted Shall be taken to equity shall be deducted from C

from the under the head 'Fair Value the General Reserve
Policyholders Fund Change Account'
Contingent Liabilities Current Liabilities Provisions B

Current Liabilities Advances Other Assets C

Current Liabilities Advances Other Assets D

Cash and Bank Advances Other Assets D

Balances

Current Liabilities Advances Other Assets B

Current Liabilities Advances Other Assets B

Current Liabilities Advances Other Assets B

every three years where the claims payment never C

period exceeds four years

Capital Misc. Expenditure not Provisions D

written off
International Indian Financial Reporting Indian Foreign B
Financial Reporting Standards Reporting Standards
Standards

9 33 19 A

9 33 19 B

Accounting stock exchange regulations all of the above D

Standards
generally accepted globally accepted generally accepted D
accounting practice accounting principles accounting principles
International International Financial International Financial C
Accounting Reporting Standards Standards
Standards (IAS)
the IFRS the IFRS Foundation the monitoring board C
Interpretations
Committee
the production of increased flexibility in the use of creative A
prudent financial financial reporting accounting practices
statements

interpret the appoint members to the inform the IASB of the D

application of IASB council's views on
international standard setting
standards projects

companies only not-for-profit corporations only A

organisations only
D
2 3 1
reduced from share B
capital shown as investments ignored
B
Schedule III Schedule IX Schedule II

A
reduced added none of the above
nominal A
actual face
C
Securities premium capital reserve Provision for Taxation
B
assets Profit and Loss A/c none of the above

c
two six nine
B
twelve four three
bank balance bank overdraft loans and advances B
D
current liabilities current assets fixed assets
D
miscellaneous
Profit and Loss A/c capital W.I.P expenditure or
reductions for reserves
 A
current assets loans & advances current liabilities
fixed capital other assets A
loans and advances Trade Receivable current liabilities C
A
current liabilities fixed liability none of the above
share capital provisions unsecured loans A
C
IV II VI

Accumulated B
depreciation current liabilities none of the above

5 6 3 C
3 4 6 C
B
reserves & surplus current liabilities fixed assets
buildings royalty patents C
calls in advance bonus reserves B
directors only stock exchange none of the above A
interim dividend interest on debentures none of the above A
Interim Dividend audit fees none of the above B
deducted from paid shown under reserves & A
up capital surplus none of the above
A

₹ 4,750 ₹ 9,750 ₹ 10,000

A
Part I of schedule VI
of Companies Act vertical form only horizontal form only
bank loans public deposits none of the above A
2% of N.P. 5% of N.P. 11% of N.P. B
C
₹ 30,000 ₹ 50,000 ₹ 75,000
Philanthropic D
Legal responsibility Economic responsibility responsibility
Fresh word German word None of the above A
Proper from D
improper Correct from incorrect All of the above
Shareholders Suppliers Stakeholders D
Clearly articulated Ill defined a&b D
Harm the company Defame the company All of the above D
Legality Disclosure All of the above D
Retain good D
employees Positive environment All of the above
Bad actions Illegal actions None of the above A
Positive No punishment All of the above D
1–12–2014 1–04–2014 1–04–2018 C
2% of N.P. 5% of N.P. 11% of N.P. B
198 123 125 A
C
30,000 50,000 75,000
Philanthropic D
Legal responsibility Economic responsibility responsibility
Ethical rules only Social rules only All of the above D
Ignoring unethical D
issues Economic cycles All of the above
Objectivity Confidentiality All of the above D
At Sr. level At middle level At any level D
A
Fraudulent reporting Ethical reporting All of the above
Professional D
competence Professional behaviour All of the above

Facilitates financial Do not reflect true and fair D

engineering view All of the above
A
Narrow in its scope Definite in its scope None of the above
No room for Greater scope for B
judgement interpretation All of the above
Discretion Wider scope All of the above B
A
Central Government State Government None of the above
2014 2015 2002 A
CBDT Members of ICAI All of the above D
Objectivity Confidentiality All of the above D
Gifts & hospitality All of the above D
Conflicts of Interest
Accountability Ethics, values and moral All of the above D
Furguson & Co. Batliboy & Cp. Padwal & Co. A

Lack of professional D
support Delay in judgement All of the above
Loss of trust Loss of human capital All of the above D
Loss of market D
capitalisation Loss of human capital All of the above
Personal ethical D
orientation Mentoring All of the above
Ethics Objectives All of the above D
Act as a central Encourage compliance of D
guide Ethics All of the above
Marketing Risk mitigation All of the above D

Minimises subjective D
standards Builds public trust All of the above
Ears of public Hands of public a&b D
D
Director Executive All of the above
a contractor a supplier All of the above D

prevents
embarrassing public Exposes unethical D
disclosure behaviour All of the above
Empowering the Conducting seminars and D
whistle blowers workshops All of the above
Evaluative ethics Behavioural ethics None of the above A
Evaluative ethics Behavioural ethics None of the above B
Finance & D
Accounting Human resources All of the above
Allows you to live an provides for a stable D
authentic life society All of the above
D
Increases ROI Builds a competitive edge All of the above
cash and savings cash and current account cash and savings D
account with bank with bank account balance as
well as current account
with bank

money market treasury bills all of the above D

instruments
inflow from inflow form operating outflow from operating C
financing activities activities activities
at the date of cash at the average rate during at the date of B
flow financial year preparing the cash
flow statement
should be separately should be separately should be separately A
shown in the cash shown in the cash flow shown in the cash flow
flow statement, as a statement, as a part of the statement, as a part of
part of cash flows reconciliation of the cash flows from
from financing changes in cash balances investing activities
activities during the year
Should be shown should be ignored while should be shown as D
cash inflow from preparing the cash flow cash outflow from
investing activity and statement financing activity
cash outflow from
financing activity

should be shown as should be shown as cash none of the above C

cash outflow from outflow from investing
operating activities activities

should be shown should be ignored while should be shown as C

cash inflow from preparing the cash flow cash outflow from
investing activity and statement financing activity
cash outflow from
financing activity

should be shown should be ignored while should be shown as C

cash inflow from preparing the cash flow cash outflow from
investing activity and statement financing activity
cash outflow from
financing activity

(b) is added back to (c) is treated as cash (d) is treated as cash B

book profits to outflow for investing inflow from financing
determine the cash activities activities
from operations

(b is added back to (c) is treated as cash (d) is ignored B

book profits to outflow for investing
determine the cash activities
from operations

investing cash flow financing cash flow cash or cash A

equivalents
investing cash flow financing cash flow cash or cash B
equivalents
investing cash flow financing cash flow cash or cash C
equivalents
investing cash flow financing cash flow cash or cash A
equivalents