M.Com Part- I Advanced Accountancy Paper- III MCQ

 

M.Com Part- I

Advanced Accountancy Paper- III

Objective Questions

1............ Means taking over of the business of two or more companies by a company newly formed for this purpose.

a) Absorption              b) Reconstruction        c) Amalgamation      d) None of the above

2. There are............... types of Reconstruction

a) Five            b) Two            c) Three           d) Four

3................ Means taking over of the business of one or more companies by a company already in existence.

a) Absorption             b) Reconstruction        c) Amalgamation        d) Merger

4. When an existing company goes into liquidation and a new company is formed to take over the business of liquidated company it is called as................

a) Amalgamation  b) Internal Reconstruction  

c) External Reconstruction      d) Absorption

5. ........... means the amount payable by the purchasing company to purchased company.

a) Bills payable                       b) Bills receivable       

c) Purchase consideration     d) Sales consideration

6. Accounting for Amalgamation, Absorption is as per

a) AS-16          b) AS-14         c) AS-10         d) AS- 20

7. Which of the following is the method of calculation of purchase consideration?

a) Lump Sum Method             b) Net Asset Method 

c) Net Payment Method         d) All of the above

8. Agreed value of Asset taken over Less Agreed value of Liabilities taken over = ........................

a) Net Payment           b) Net Assets/ Purchase Consideration      

c) Net liabilities           d) All of the above

9. Journal entry for Purchase consideration due is ...................... Dr. To Realisation A/c.

a) Purchased Company A/c                b) Purchase Consideration A/c          

c) Purchase Price A/c                          d) Purchasing Company A/c

10.  ............... Account is opened at the time of internal reconstruction of a company.

a) Reconstruction A/c             b) Capital Redemption A/c   

c) Capital Reduction A/c      d) All of the above

11. While Preparing Balance Sheet after Internal Reconstruction ............. word is used after the name of Balance Sheet.

a) And Reduced        b) And Reconstructed                       c) And Increased        d) All of the above

12. In amalgamation all asset are transferred to realisation account at ……………..

a) Market value           b) Rental value            c) Revalued amount       d) Book value

13. Sacrifice made by different parties are shown in ………… account

a) Realisation b) Shareholders           c) Capital Reserve       d) Capital Reduction

14. While calculating purchase price, the following values of assets are considered

a) Market values          b) Book value             c) Revised Value        d) Average values

15. When liquidation expenses is paid and borne by seller company then it is debited to………………

a) Bank A/c                 b) Goodwill A/c          c) Realisation A/c        d) Capital Reserve A/c.

16. When liquidation expenses is paid and borne by purchasing company then it is debited to………………

a) Bank A/c                 b) Goodwill /Capital Reserve A/c.  

c) Realisation A/c        d) None of the above

17. Profit on realisation account transferred to ………………..

1. Debenture holders account             2. Preference shareholders account    

3. Equity shareholders account        4. All of the above

18. In case of purchase conssideration due …………. Account is credited

1. Realisation                                     2. Purchasing company          

3. Purchased company                        4. Purchase consideration

19. Internal reconstruction means

1. Alteration of share capital                                       2. Reduction of share capital 

3. Both alteration and reduction of share capital   4. None of the above

20. Intrinsic value per equity share = …………………….. ÷ No of Equity Shares

1. Net liabilities for equity shareholders         2. Net Assets for equity shareholders         

3. Net Payments for equity shareholders                    4. None of the above

21. In case of Accounting for cooperative societies which of the following account is opened.

1. Trading, Profit and Loss A/C                    2. Balance Sheet        

3. Profit and Loss Appropriation A/C                       4.All of the above

22. Profit and Loss Appropriation account shows the ...........

1. Gross Profit            2. Net Profit    3. Net Loss      4. Appropriation of Profit

23. Co- operative society can write off bad debts by taking sanction of ……………..

1. State government    2. Registrar of co-operative societies

3. General body         4. Central government

24.  A dividend can be paid upto………………

1. 20% of the profit    2. 15% of the profit     3. 18% of the profit     4. 25% of the profit

25. The co-operative credit societies act was first passed in india in…………….

1. 1912            2. 1920            3. 1904            4. 1930

26. No part of the profit is to be appropriated without the approval of …………………….

1. Government                   2. The registrar      3. The auditor 4. The annual general meeting

27. The first …………..% or more of the net profit is transferred to reserve fund.

1. 20%             2. 15%             3. 25%                        4. 10%

28. Maharashtra state Co-operative Societies Act was passed in ---------

1. 1912            2. 1960            3. 1904            4. 1950

29. The member of co-operative society has …………liability.

1. Limited       2. Unlimited      3. Joint          4. Joint and several

30. Which of the following is the co-operative principle

1. Voluntary Membership                   2. Members Economic Participation  

3. Co-operation among cooperatives 4. All of the above

 

31. Which of the following is the type of co-operative societies.

1. Agricultural Marketing society       2. Consumers Society            

3. Co-operative Banks                        4. All of the above

32. Co-operatives around the world generally operate according to the same core priciples and values adopted by the International Co- operative Alliance in ……………

1. 1965            2. 1985            3. 1975            4. 1995

33. Coolie charges are debited to ………….account

1. Trading account    2. Profit and Loss account      3. Balance sheet    4. None of the above

34. Co-operatives are autonomous, self-help organisation controlled by their……….

1. Shareholders           2. Debenture holders     3. Creditors      4. Members

35. Co-operative organizations are based on the co-operative……………..

1. Societies      2. Principles     3. Rule           4. All of the above

36. There are .............. parties in lease agreement

1. Three           2. Four             3. Five             4. Two

37.  Owner of Asset is called as ............ in case of lease.

1. Owner         2. Lessee         3. Lessor         4. Proprietor

38. Accounting for Lease is as per ............

1. AS-14          2. AS-10          3. AS-3            4. AS-19

39. ............ is the consideration for lease contract

1. Rent                        2.Interest         3. Dividend       4. All of the above

40.  .............. is the user of asset in case of lease

1. Lessor          2. Lessee         3. Owner         4. Proprietor

41. In ................... type of lease the lesser bears the risk of obsolescence.

1. Financial      2. Operating   3. Both of the above      4. None of the above

42. Lease agreement is one of the method of ...............

1. Short term financing           2. Medium term financing     

3. Long term financing           4. All of the above

43.  Under finance lease the ……… of ownership is not transferred to lessee.

1. Title             2. Benefits      3. Risk             4. All of the above

44. Financial lease is …………. Contractual agreement.

1. Cancellable                          2. Non- Cancellable              

3. Both of the above               4. None of the above

45. Lease is ……….. Between lessor and lessee.

1. Resolution               2. Contract        3. Co-ordination       4. All of the above

46. Operating lease is for the ……….. Period.

1. Long term               2. Short term            

3. Medium term          4. Both long term and short term

47. In ................... type of lease the lessee bears the risk of obsolescence.

. 1. Financial       2. Operating            3. Both of the above               4. None of the above

48. Leveraged lease has ………… parties.

1. Lessee, Lessor and Financer        2. Lessee and Lessor              

3. Lessee, Lessor and Creditors          4. Lessee, Lessor and Investors

49. ………… is a lease in which all the benefits and risks of ownership of an asset are transferred substantially to the lessee.

1. Financial lease       2. Operating lease       3. Lease back lease      4. Leveraged lease

50. …………is the type of lease under which owner of the asset sells the asset to another, who lease the same asset to the original owner.

1. Financial lease         2. Operating lease       3.Sale and Lease back           4. Leveraged lease

51. ……… is the estimated fair value of the asset at the end of the lease term.

1. Intrensic Value        2. Fair Value               3. Face value               4. Residual Value

52. ……….is either the period over which an asset is expected to be economically usable or the number of units expected to be produced from the asset.

1. Useful life               2. Economic Life       3. Both of the above      4. None of the above

53. ……….is the amount for which an asset could be exchanged between a knowledgeable willing parties in an arm’s length transaction.

1. Fair value               2. Economic value       3.Residual value          4.Market value

54. ……… is the contract whereby the owner of an asset grants to another party the exclusive right to use the asset usually for an agreed period of time in return for the payment of rent.

1. Agreement              2. Lease          3. Rent agreement       4. None of the above

55. Lease provides option to buy an asset at …………

1. Economic value       2. Fair Value   3. Residual value       4. All of the above

56. The notion of social accounting was first proposed by ……….

1.         Burmmet         2. Bown          3. Bolt             4. Likert

57. Pollution in its various aspects emerges as a very important concern and a critical area of attention in ……….. Accounting.

1. Human resource accounting            2.  Management accounting   

3. Social responsibility accounting      4. Environmental accounting

58. …………is the process of identifying and measuring data about human resoruces.

1. Human resource management         2. Human resoruce controling

3. Human resource accounting        4. Social responsibility accounting

59. The notion of social accounting was first proposed by Bown in ………….

1. 1953            2.1935             3. 1955            4. 1957

60. Historical cost method to measure human resources was developed by ……………

1. Burmmet    2. Renis likert              3. Hekimian     4. Lev and schwart

61. ……….accounting is the modification and application of conventional accounting to the analysis and solution problems of social nature.

1. Social          2. Human resource      3. Cost             4. Financial

62. ………. Model of social audit known as socioeconomic operating statement ( SEOS)

1. Weygandts           2.            Ralphs             3. Abt              4. Linowes

63. Several models were developed in ………… to provide a standard format of Social Responsibility Accounting.

1. India            2. USA            3. Japan           4. Chin

64. Which of the following is not the social responsibility accounting model?

1. Linowes      2. Weygandts             3. Ralphs         4. Bolt

65. Which of the following is the objective of social responsibility accounting

1. To identify and measure the periodic net social contribution of firm       

2. To determine whether firms policies adversely affect on the society        

3. To make available relevant information of firms goals, policies, performance.     

4. All of the above

66. ………..accounting lays more stress on social responsibility than commercial responsibility.

1. Social Responsibility         2. Human resoruce      3. Cost             4. Financial

67. Which of the following is the problem in social responsibility accounting?

1. No standard format                        2. Selection of Model            

3. Choice of area attention      4. All of the above

68. ………….. Accounting deals with identification, measurement, recognition, and disclosure of an organizations environmental cost, benefits, assets, liabilities and contingencies as a component of financial or sustainability reports.

1. Social Responsibility Accounting               2. Human resource accounting           

3. Cost accounting                                          4. Environmental accounting

69. ……….. in its various aspects emerges as a very important concern and a critical area of attention in environmental accounting.

1. Population               2. Polllution                3. Illeteracy     4. All of the above

70. Which of the following is not the method of human resource valuation?

1. Historical cost method        2.Replacement cost method   

3.Opportunity cost method     4. Standard cost method