Corporate Accounting - II

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Dr.G.R.Damodaran College of Science

(Autonomous, affiliated to the Bharathiar University, recognized by the UGC)Re-
accredited at the 'A' Grade Level by the NAAC and ISO 9001:2008 Certified
CRISL rated 'A' (TN) for MBA and MIB Programmes
III B.Com. (International Business) [2013-2016]

Semester: V
Core: Corporate Accounting II - 517A
Multiple Choice Questions.
1. Goodwill is the ---------------- value of a firms anticipated excess earnings

A. past
B. future
C. present
D. past and present
ANSWER: C
2. Which one of the following factors will not affect the value of shares?
A. demand and supply of shares
B. nature of company's business
C. profit-earning capacity of the company
D. labour force
ANSWER: D
3. Which one of the following is not a recognized method for valuation of goodwill?
A. Average Profit Method
B. Annuity Method
C. Capitalization Method
D. Yield Method
ANSWER: D
4. Claims paid by Life Insurance Companies is shown in

A. Schedule 1
B. Schedule 2
C. Schedule 3
D. Schedule 4
ANSWER: D
5. Banks prepare the accounts for the -----------.

A. Calendar year.
B. Financial year.
C. Co-operative year.
D. Diwali year.
ANSWER: B
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6. Bonus shares issued out of Post acquisition profits will

A. Have no effect on CBS
B. Decrease the revenue profits
C. Decrease the total of assets side of CBS
D. Increase the goodwill to the extent of the holding companys share of the bonus
ANSWER: B
7. Number of Schedules to be prepared by the Insurance companies for their financial statements are
A. 26 schedules
B. 10 schedules
C. 12 schedules
D. 15 schedules
ANSWER: D
8. Rebate on bills discounted is ----------------.

A. An Item of income.
B. A liability.
C. Income received in advance.
D. Income out standing.
ANSWER: C
9. The term Minority Interest represents

A. the shareholders holding 50% of shares in Subsidiary company
B. the interest of the outsiders in the Subsidiary company
C. the company which holds more than 51% in Subsidiary company
D. none of the above
ANSWER: B
10. Preliminary expenses incurred by life insurance companies is treated as

A. Miscellaneous expenditure
B. a deduction from paid up share capital
C. a fixed asset
D. an operating expense
ANSWER: B
11. A non-banking asset is

A. an investment
B. an item of office appliances
C. any asset acquired from the debtors in satisfaction of claim
D. money at call and short notice
ANSWER: C
12. Insurance business in India is now regulated by the provisions of

A. The Insurance Act 1938
B. The IRDA Act 1999
C. The Banking Regulations Act 1949
D. The Indian Companies Act 1956
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ANSWER: B
13. For calculating price-earning ratio, it is essential to know

A. Market value per share
B. Nominal value per share
C. Paid up value per share
D. None of the above
ANSWER: A
14. Dilutive potential equity shares represent shares which

A. will be issued in future
B. are already issued
C. are the shares of promoters
D. are issued to employees freely
ANSWER: A
15. Income tax on interest, dividend and rent should be------------------.

A. Debited to provision for taxation.
B. Credited to provision to taxation.
C. Deducted from interest, dividends and rents.
D. None of the above.
ANSWER: A
16. Valuation balance sheet is -----------------.

A. A statement of assets and liabilities on a particular date.
B. Prepared to determine profit by comparing life assurance fund with net liability.
C. A statement of all assets and liabilities at market values.
ANSWER: C
17. Bonus in reduction of premium is shown as a __________ in the revenue account.

A. Surplus.
B. Premium.
C. Expense and Income.
ANSWER: C
18. Goodwill is _________________.

A. Fixed Asset.
B. Current Asset.
C. Intangible Asset.
D. Tangible Asset.
ANSWER: C
19. The value of goodwill is more in case of---------------.

A. Annuity Method.
B. Super profit Method.
C. Fair value method.
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D. Capitalization Method.
ANSWER: A
20. The parent organization acquiring the controlling interest in another company is called_____________.
A. Subsidiary Company.
B. Holding company.
C. Private Company
D. Deemed Public Company.
ANSWER: A
21. Pre acquisition profits and reserves are treated as--------------.

A. Revenue Profit.
B. Capital Profit.
C. Capital Reserve.
D. Revenue Reserve.
ANSWER: B
22. Post acquisition profits are treated as---------------.

A. Revenue Profit.
B. Capital Profit.
C. Capital Reserve.
D. Revenue Reserve.
ANSWER: A
23. The dividend that is declared between AGM is-------------.

A. Interim Dividend.
B. Final Dividend.
C. Semi Dividend.
D. Haly-yearly dividend.
ANSWER: A
24. For calculating value of equity share by intrinsic value method, it is essential to know-------------.
A. Normal rate of return.
B. Expected rate of return.
C. Net equity.
D. None.
ANSWER: A
25. For calculating value of equity share by yield value method, it is essential to know-------------.
A. Expected rate of return.
B. Capital employed.
C. Net equity.
D. None.
ANSWER: C
26. For calculating value of equity share by earning capacity method, it is essential to know-----------------.
A. Nominal value per share.
B. Rate of earnings.
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C. Dividend per share.

D. Paid-up value per share.
ANSWER: A
27. A banking company can pay dividend on its share without writing off--------------.
A. Preliminary expenses.
B. Brokerage.
C. The bad debts.
D. None.
ANSWER: B
28. If the balance of Rebate on bill discounted account is given in the TB, it will be taken to-----------.
A. Debit side of the p&l a/c.
B. Credit side of the p&l a/c.
C. Liability side of balance sheet.
D. Asset side of the balance sheet.
ANSWER: D
29. A general insurance company carry on two or more type of business prepares only-------------------.
A. Revenue a/c.
B. Profit or loss a/c.
C. Separate revenue a/c for each type of business & combined p &l a/c
D. Real a/c.
ANSWER: A
30. The value of goodwill according to the simple profit method is:
A. The product of current year s profit and number of years.
B. The product of last year s profit and number of year s.
C. The product of average profits of the given year s and number of years.
ANSWER: C
31. Super profit is the difference between:

A. Capital employed and Average capital employed.
B. Average profit and normal profit.
C. Current year profit and last year profit.
ANSWER: B
32. From the point of view of valuation of goodwill, the term capital employed means the funds provided
by:
A. Shareholders only.
B. Debenture holders only.
C. Both shareholders and Debenture holders.
D. Shareholders, Debenture holders and Creditors.
ANSWER: A
33. For calculating the value of an equity share by intrinsic value method, it is essential to know:
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A. Normal rate of Return.

B. Expected rate of Return.
C. Net Assets.
ANSWER: C
34. Under net assets method, the value of a share depends on the amount that would be available to:
A. Preference Shareholders.
B. Equity shareholders.
C. Creditors.
ANSWER: B
35. Under Assets-Backing method, the value of equity share is calculated under the presumption that the
company would be:
A. Liquidated.
B. Continued.
C. Liquidated or Continued.
ANSWER: A
36. Under the yield method, the value of equity share is calculated on the presumption that the company
would be:
A. Wound up.
B. Continued.
C. Wound up or continued.
ANSWER: B
37. Every banking company is required to close its accounts on:

A. 31 st December.
B. 31 st March.
C. 30 th June.
D. 30 th September.
ANSWER: B
38. An asset which does not generate income to the banker is termed as:
A. Performing asset.
B. Fixed Assets.
C. Non-Performing Asset.
D. Current Asset.
ANSWER: C
39. Rebate on bills discounted is :

A. An Accrued income.
B. An item of income.
C. A liability.
D. Income received in advance.
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ANSWER: D
40. Demand drafts and telegraphic transfers are shown in the bank accounts under the head:
A. contingent liabilities.
B. Bills Payable.
C. Loans and Advances.
D. Borrowings in India.
ANSWER: B
41. Letter of Credit and Endorsement are shown in the Bank accounts under the head:
A. Bills Payable.
B. Contingent liabilities.
C. Bills for Collections.
D. Other assets.
ANSWER: C
42. In General Insurance, the policy amount is payable:

A. After the death of the insured.
B. After the expiry of the policy period.
C. Only when the loss occurs or the liability arises.
D. Only when the insured has attained a certain age.
ANSWER: B
43. In life insurance, the policy amount is payable:

A. after the death of the assured.
B. After the expiry of the policy period.
C. On death of the insured or on expiry of policy period which ever is earlier?
D. Only when the insured has incurred loss.
ANSWER: C
44. The bonus which is to be paid on maturity of the Policy along with the policy amount is known as:
A. Reversionary Bonus.
B. Annual Bonus.
C. Interim Bonus.
D. Eventual Bonus
ANSWER: A
45. The commission received from the re-insurer is called;

A. commission on re insurance acceptance.
B. commission on re insurance ceded.
C. commission on direct business.
D. none of the above.
ANSWER: C
46. The commission paid by the re-insurer is known as;

A. Commission on direct business.
B. Commission on re insurance ceded.
C. Commission on re insurance accepted.
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ANSWER: B
47. In life insurance, the profit of the company is ascertained;

A. Every year.
B. Once in six month.
C. Once in three years.
D. Once in two years.
ANSWER: C
48. A general insurance company carrying on two or more types of business prepares:
A. separate revenue a/c for each type of business and combined P&L a/c.
B. combined revenue a/c.
C. Revenue accounts in respect of different business.
D. P&L a/c (including appropriation a/c).
ANSWER: C
49. Reserve for unexpired risks appearing outside the trial balance under adjustment is:
A. shown on the debit side of revenue a/c.
B. shown on the liabilities side of the balance sheet.
C. shown on both side of the balance sheet.
D. shown on debit side of revenue a/c and liabilities side of balance sheet.
ANSWER: D
50. Income tax on interest, dividend and rate should be:

A. Subtracted from interest dividends and rents.
B. Added to interest dividends and rents.
C. Debited to provision for tax a/c.
D. debited to p&l appropriation a/c.
ANSWER: B
51. Leasehold ground rents are shown in----------.

A. Revenue a/c.
B. P&l a/c.
C. Liability side of Balance sheet
D. Asset side of Balance sheet
ANSWER: A
52. A company in which more than 50% of shares are held by other company is termed as;
A. Holding company.
B. Subsidiary company.
C. Govt. Company.
D. Public company.
ANSWER: A
53. Profit made by a subsidiary company up to the date of acquisition of shares by the holding company is
known as-----------.
A. Revaluation profits.
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B. Realization profits.
C. Capital profits.
D. Revenue profits.
ANSWER: C
54. To excess of the share in equity or net assets of the subsidiary over and above the price paid for the
investment is shown as:
A. capital reserve.
B. cost of control.
C. revenue reserve.
D. none of the above.
ANSWER: B
55. Unrealised profit included in stock is :

A. deducted from stock in combined balance sheet.
B. deducted from p&l a/c balance in combined balance sheet liabilities side.
C. deducted from stock and p&l a/c balance in combined balance sheet.
D. shown separately in asset side of CBS.
ANSWER: C
56. Bonus shares issued out of post acquisition profits will:

A. have no effects on CBS.
B. decrease in revenue profits.
C. decrease in total assets side of CBS.
D. increase the goodwill to the extent of the holding company s share of the bonus.
ANSWER: B
57. Disclosure of accounting policies is dealt in;

A. AS-1.
B. AS-2.
C. AS-5.
D. AS-19.
ANSWER: A
58. Depreciation accounting is dealt in

A. AS-1
B. AS-4
C. AS-6
D. AS-3
ANSWER: C
59. Cash Flow Statement is dealt in

A. AS-1
B. AS-3
C. AS-2
D. AS-6
ANSWER: B
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60. Valuation of Inventories dealt in:

A. AS-1
B. AS-3
C. AS-2
D. AS-6
ANSWER: C
61. Inventories should be valued at

A. Cost
B. Net realisable value
C. Cost or net realisable value whichever is less
ANSWER: C
62. ---------are inflows and outflows of cash and cash equivalents.

A. Cash flows
B. Fund flows
C. Cash and fund flow
ANSWER: A
63. Accounting standard board was constituted on-------.

A. 21.1.77
B. 21.4.78
C. 23.5.79
D. 20.12.77
ANSWER: A
64. In cash flow statement, closing balance of cash balance is posted in which side of the statement.
A. sources of cash.
B. application of cash.
C. sources of funds.
D. application of funds.
ANSWER: B
65. In cash flow statement, closing balances of bank balance is posted in which side of the statement.
A. sources of cash.
ANSWER: B
66. In cash flow statement, issue of shares is posted in .

A. sources of cash.
B. application of cash
ANSWER: A
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67. In cash flow statement, issue of debentures is posted in.

A. application of cash.
B. sources of funds.
C. application of funds.
D. sources of cash.
ANSWER: B
68. In cash flow statement, sale of fixed assets is posted in.

A. sources of cash.
ANSWER: A
69. In cash flow statement, sale of investments is posted in ___________ .

A. sources of cash
ANSWER: A
70. In cash flow statement, redemption of debentures is posted in.

A. sources of cash.
ANSWER: D
71. In cash flow statement, redemption of preference shares is posted in.

A. sources of cash.
ANSWER: B
72. In cash flow statement, loans repaid is posted in ___________.

A. sources of funds.
B. application of funds.
C. application of cash.
D. sources of cash.
ANSWER: C
73. In cash flow statement, tax paid is posted in.

A. sources of funds.
B. application of funds.
C. application of cash.
D. sources of cash.
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ANSWER: C
74. Depreciation is an example of _______________.

A. fixed cost.
B. variable cost.
C. semi-variable cost.
D. direct cost.
ANSWER: A
75. Interest on loan are shown in bank accounts under the heading---------
A. Interest earned
B. interest expended
C. advances
D. Borrowings
ANSWER: A
76. Bank charges are shown in bank accounts under the heading------
A. Other income
B. operating expenses
C. Interest expended
ANSWER: B
77. Interest on overdrafts are shown in bank accounts under the heading-----
A. Interest expended
B. Interest earned
C. other income
D. operating expenses
ANSWER: B
78. Schedule 4 in Bank accounts relates to-----

A. Deposits
B. advances
C. other assets
D. Borrowings
ANSWER: D
79. Schedule 8 in Bank accounts relates to -----

A. other assets
B. Borrowings
C. Advances
D. investments
ANSWER: D
80. Advances are shown in bank accounts under schedule----

A. 9
B. 10
C. 11
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D. 5
ANSWER: A
81. Deposits are shown in bank accounts under schedule----

A. 9
B. 11
C. 12
D. 3
ANSWER: D
82. Contingent liability are shown in bank accounts under schedule----

A. 12
B. 10
C. 8
D. 6
ANSWER: A
83. Balance with other banks and Money at call and short notice are shown in bank accounts under
schedule------
A. 7
B. 6
C. 9
D. 10
ANSWER: A
84. Locker rent are shown in bank accounts under ----

A. Schedule 13
B. Schedule 14
C. Schedule 15
D. Schedule 16
ANSWER: B
85. Interest on cash credits are shown in bank accounts under ----
A. Schedule 14
B. Schedule 13
C. Schedule 15
D. Schedule 16
ANSWER: B
86. Business premises are shown in bank accounts under ----

A. Schedule 8
B. Schedule 10
C. Schedule 11
D. Schedule 6
ANSWER: A
87. Endowment fees are shown in Insurance accounts under-----

A. Other income
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B. Income from investments

C. Operating expenses
D. Benefits paid
ANSWER: A
88. Agents allowance are shown in Insurance accounts under-----

A. Other income
B. Benefits paid
C. Operating expenses
D. Commission expenses
ANSWER: C
89. Annuities are shown in Insurance accounts under schedule----

A. 3
B. 2
C. 1
D. 4
ANSWER: D
90. Furniture and fittings are shown in Insurance accounts under------

A. Investments
B. Fixed assets
C. current liabilities
D. Advances and other assets
ANSWER: B
91. Income tax on interest are shown in Insurance accounts under schedule----
A. 10
B. 11
C. 12
D. 8
ANSWER: C
92. Sundry creditors are shown in Insurance accounts under schedule----

A. 10
B. 11
C. 12
D. 13
ANSWER: D
93. Commission are shown in Insurance accounts under schedule----

A. 1
B. 2
C. 3
D. 4
ANSWER: B
94. Loans on Government securities are shown in Insurance accounts under-----
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A. Fixed assets
B. Loans
C. Investments
D. Advances and other assets
ANSWER: B
95. Foreign Government securities are shown in Insurance accounts under schedule----
A. 8
B. 9
C. 10
D. 7
ANSWER: A
96. Cash in current accounts are shown in Insurance accounts under schedule----
A. 12
B. 11
C. 8
D. 7
ANSWER: B
97. Legal fees in respect of claims are shown in-----

A. Revenue account
B. Profit and loss account
C. Profit and appropriation account
D. Balance sheet
ANSWER: A
98. Expenses of management (banking company) are shown in -------

A. Revenue account
B. profit and loss account
C. Balance sheet
D. Profit and loss appropriation account
ANSWER: B
99. In comparison to face value, the valuation of shares is usually:

A. More
B. Less
C. Equal
D. Less or more
ANSWER: D
100. When value of shares is found out on the basis of its dividend or expected dividend, it is called :
A. Asset Valuation Method
B. Yield or Income Valuation Method
C. Fair Value Method
ANSWER: B
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101. The most appropriate method of valuation of shares from the point of view of investor is :
A. Net Assets method
B. Income Valuation Method
C. Net Asset and Income Method
ANSWER: B
102. In respect of the valuation of shares, the employed capital means:

A. Cost price of all the assets
B. Market value of all the assets
C. Book value of all the assets
D. All the above values
ANSWER: B
103. The value of per share on division of amount of net assets by number of share will be :
A. Intrinsic Value
B. Book Value
C. Cost Price
D. Market Value
ANSWER: A
104. If the net assets taken over by the company are less than the purchase consideration, the difference
shall be treated as :
A. Secret Reserve
B. Goodwill
C. Capital Reserve
D. General Reserve
ANSWER: B
105. How many schedules are there in the amended from of Final Account of Banking Company:
A. 8
B. 10
C. 12
D. 16
ANSWER: D
106. In which year 14 Banks were Nationalised?

A. 1969
B. 1971
C. 1973
D. 1977
ANSWER: A
107. When were General Insurance Companies nationalised:

A. 1955
B. 1969
C. 1971
D. 1973
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ANSWER: C
108. Medical expenses regarding claims are added to:

A. Claims
B. Premium
C. Management Exp.
D. None of above
ANSWER: A
109. Fire Insurance provides cover for

A. Tangible assets
B. Intangible assets
C. Fictitious assets
D. both tangible and Intangible
ANSWER: A
110. The average clause in a loss of profits policy protects the

A. Insured
B. Insurer
C. Workers
D. Tax authorities
ANSWER: B
111. Which one of the following combinations of accounting assumptions are fundamental as per AS 1?
A. Going concern, consistency, and accrual
B. Going concern, conservatism, and historic cost
C. Historic cost, consistency and conservatism
D. Conservatism, consistency and accrual
ANSWER: A
112. Any change in the accounting policy relating to inventories which has a material effect in the current
or later periods should be disclosed. This is in accordance with the accounting principle of:
A. Going concern
B. Conservatism
C. Consistency
D. Disclosure
ANSWER: C
113. Historical cost of inventories should normally be determined by using

A. FIFO, or Weighted average cost formula
B. FIFO, Base Stock, or Adjusted Selling price formula
C. FIFO, LIFO or Latest Purchase Price formula
D. LIFO, Base Stock or Adjusted Selling Price formula
ANSWER: A
114. Which one of the following formulae is not based on historic cost?
A. LIFO
B. FIFO
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C. Latest Purchase Price

D. Specific Identifications
ANSWER: C
115. Which one of the following methods is best suited to retail business?
A. FIFO
B. LIFO
C. Latest Purchase Price
D. Retail price method
ANSWER: D
116. Cash flows arising from interest paid in the case of a financial enterprise is a cash flow from
A. operating activities
B. financing activities
C. both (i) and (ii)
D. investing activities
ANSWER: A
117. Interest and dividends received in the case of a manufacturing enterprise should be classified as cash
flow from
A. operating
B. financing
C. Investing
D. both (ii) and (iii)
ANSWER: C
118. A change in the estimated life of the asset, which necessitates adjustment in the depreciation is an
example of
A. Prior period item
B. Ordinary Item
C. Extraordinary item
D. Change in the accounting estimate.
ANSWER: D
119. AS-6 is applicable to which one of the following assets?

A. Goodwill
B. Livestock
C. Plantation
D. all the above.
ANSWER: D
120. The following factor is to be considered for estimating the useful life of a depreciable asset
A. Expected physical wear and tear
B. obsolescence
C. legal or other limits on the use of assets
D. all the above.
ANSWER: D
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121. Banks show the provision for income-tax under the head
A. Contingency accounts
B. Contingent liabilities
C. Other liabilities and provisions
D. Borrowings
ANSWER: C
122. When income is to be recognised on cash basis, a distinction should be made between
A. Performing and non-performing assets
B. Banking and non-banking assets
C. Monetary and non-monetary assets
D. Current and non-current assets
ANSWER: A
123. Survey expenses for marine insurance claims must be

A. added to claims
B. added to law charges
C. added to management expenses
D. shown as a separate item
ANSWER: A
124. The portion of the authorized capital which can be called up only on the liquidation of the company is
called----------.
A. Issued capital.
B. Unsubscribed capital.
C. Reserve capital.
D. Paid up capital.
ANSWER: C
125. The amount of capital with which the company intends to be registered is called-------
A. Registered capital.
B. Nominal capital.
C. Issued capital.
D. Both (a). And (b).
ANSWER: A
126. Profit on reissue of forfeited shares may be transferred to-------------.

A. Shares forfeited account.
B. Share capital.
C. Capital Reserve account.
D. Share call account.
ANSWER: A
127. When one company goes in liquidation and a new company is formed to take over the business of the
company which goes in liquidation, this is called :
A. Amalgamation
B. Absorption
C. External Reconstruction
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D. Internal Reconstruction
ANSWER: C
128. When was banking company regulation act implemented?

A. 1947
B. 1949
C. 1950
D. 1956
ANSWER: B
129. A decrease in net book value arising on revaluation of fixed assets is to be debited to be
A. revaluation reserve
B. Profit and loss account
C. General reserve
D. Capital reserve
ANSWER: B
130. Exchange differences arising on repayment of fixed asset-linked liabilities should be adjusted to
A. Profit and loss account
B. Fixed asset account
C. Revaluation reserve
D. Capital reserve.
ANSWER: B
131. Banks show the provision for doubtful debts, under the head
A. Contingency accounts
B. Contingent liabilities
C. Other liabilities and provisions
D. Borrowings
ANSWER: C
132. When income is to be recognised on cash basis, a distinction should be made between
A. Performing and non-performing assets
B. Banking and non-banking assets
C. Monetary and non-monetary assets
D. Current and non-current assets
ANSWER: A
133. Depreciation is a process of _______.

A. valuation.
B. allocation.
C. Reduction.
D. appreciation.
ANSWER: B
134. The main objective of providing depreciation is ______.

A. to calculate true profit.
B. to calculate financial position.
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C. to reduce tax burden .

D. to reduce profit.
ANSWER: A
135. Depreciation arises because of ________.

A. fall in the market value of an asset.
B. physical wear and tear.
C. fall in the value of money.
D. rise in the value of money.
ANSWER: B
136. Under the straight line method of charging depreciation, depreciation _____.
A. increases every year.
B. decreases every year.
C. is constant.
D. fluctuate every year.
ANSWER: C
137. Under the diminishing balance method depreciation is calculated on _______.

A. original value
B. written down value.
C. scrap value.
D. market value.
ANSWER: B
138. The amount of depreciation charged on machinery will be debited to _______.

A. machinery account.
B. depreciation account.
C. cash account.
D. bank account.
ANSWER: B
139. Loss on the sale of machinery should be written off against _______.
A. share premium account
B. sales account.
C. depreciation fund account.
D. general reserve account.
ANSWER: C
140. The annual installment to depreciation fund for replacement of a fixed asset is _____.
A. charge against profit.
B. an appropriation of profits.
C. charge against reserve.
D. charge against cash.
ANSWER: A
141. Depreciation is provided on _____.

A. current asset.
21 of 23 8/8/2015 12:19 PM
B. fixed assets.
C. fictitious assets.
D. investment.
ANSWER: B
142. The permanent, continuing and gradual shrinkage in the book value of a fixed asset is called
________
A. depreciation.
B. appreciation.
C. reduction.
D. computation.
ANSWER: A
143. Depreciation is charged on the _______.

A. market value.
B. book value.
C. purchase value.
D. sale value.
ANSWER: B
144. Depreciation is charged on _____.

A. continuous basis.
B. temporary basis.
C. daily basis.
D. monthly basis.
ANSWER: A
145. Mines, quarries, oilfields and forest are example of _____.

A. fixed assets.
B. current assets.
C. wasting assets .
D. intangible assets.
ANSWER: C
146. Depreciation applies to_______.

A. current assets .
B. wasting assets.
C. intangible assets.
D. fixed assets.
ANSWER: D
147. Depletion applies to _____.

A. current assets .
B. wasting assets.
D. fixed assets.
ANSWER: B
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148. Amortization applies to _____.

A. current assets .
B. wasting assets.
D. fixed assets.
ANSWER: C
149. Estimated sale value of the asset at the end of its economic life is known as _____.
A. purchase value.
B. market value.
C. written down value.
D. residual value.
ANSWER: D
150. The value of asset can be reduced to zero under this method _____.
A. straight line method.
B. written down value method.
C. annuity method.
D. depreciation fund method.
ANSWER: A
Staff Name
Jayanthi.M.
23 of 23 8/8/2015 12:19 PM

Corporate Accounting - II

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http://172.16.2.20/printqp.php?heading=III B.Com. (International Busine...

Dr.G.R.Damodaran College of Science

III B.Com. (International Business) [2013-2016]

1. Goodwill is the ---------------- value of a firms anticipated excess earnings

4. Claims paid by Life Insurance Companies is shown in

5. Banks prepare the accounts for the -----------.

6. Bonus shares issued out of Post acquisition profits will

8. Rebate on bills discounted is ----------------.

9. The term Minority Interest represents

10. Preliminary expenses incurred by life insurance companies is treated as

11. A non-banking asset is

12. Insurance business in India is now regulated by the provisions of

13. For calculating price-earning ratio, it is essential to know

14. Dilutive potential equity shares represent shares which

15. Income tax on interest, dividend and rent should be------------------.

16. Valuation balance sheet is -----------------.

17. Bonus in reduction of premium is shown as a __________ in the revenue account.

18. Goodwill is _________________.

19. The value of goodwill is more in case of---------------.

21. Pre acquisition profits and reserves are treated as--------------.

22. Post acquisition profits are treated as---------------.

23. The dividend that is declared between AGM is-------------.

C. Dividend per share.

31. Super profit is the difference between:

A. Normal rate of Return.

37. Every banking company is required to close its accounts on:

39. Rebate on bills discounted is :

42. In General Insurance, the policy amount is payable:

43. In life insurance, the policy amount is payable:

45. The commission received from the re-insurer is called;

46. The commission paid by the re-insurer is known as;

D. None of the above.

47. In life insurance, the profit of the company is ascertained;

50. Income tax on interest, dividend and rate should be:

51. Leasehold ground rents are shown in----------.

55. Unrealised profit included in stock is :

56. Bonus shares issued out of post acquisition profits will:

57. Disclosure of accounting policies is dealt in;

58. Depreciation accounting is dealt in

59. Cash Flow Statement is dealt in

60. Valuation of Inventories dealt in:

61. Inventories should be valued at

62. ---------are inflows and outflows of cash and cash equivalents.

63. Accounting standard board was constituted on-------.

66. In cash flow statement, issue of shares is posted in .

67. In cash flow statement, issue of debentures is posted in.

68. In cash flow statement, sale of fixed assets is posted in.

69. In cash flow statement, sale of investments is posted in ___________ .

70. In cash flow statement, redemption of debentures is posted in.

71. In cash flow statement, redemption of preference shares is posted in.

72. In cash flow statement, loans repaid is posted in ___________.

73. In cash flow statement, tax paid is posted in.

74. Depreciation is an example of _______________.

78. Schedule 4 in Bank accounts relates to-----

79. Schedule 8 in Bank accounts relates to -----

80. Advances are shown in bank accounts under schedule----

81. Deposits are shown in bank accounts under schedule----

82. Contingent liability are shown in bank accounts under schedule----

84. Locker rent are shown in bank accounts under ----