110 + Interview Questions in MCQ IN GENERAL AWARENESS Page 2 InterviewSolution

51.	Income and Expenditure Account is prepared onA. Cash BasisB. Accrual Basis.C. Both (a) and (b)D. None of These.
Answer» Correct Answer - b

Discussion

52.	Main source of Income for a Not - for Profit Organisation isA. Rent.B. Salaries.C. Donations and Subscriptions.D. Sale of Assets.
Answer» Correct Answer - c

Discussion

53.	Identity capital receipt from the following:A. Life Membership FeesB. Rent ReceiptC. Entrance feesD. Sports expenses.
Answer» Correct Answer - a

Discussion

54.	Sincere Ltd. Has a Proprietary Ratio of `25%` . To maintain this ratio at `30%` management mayA. Increase Equity.B. Reduce Debt.C. Increase Equity and Reduce Debt.D. All of these.
Answer» Correct Answer - d

Discussion

55.	Identity revenue receipt from the following :A. Donations for BuildingB. SubscriptionC. Life Membership FeesD. Legacy donation for Sports fund.
Answer» Correct Answer - b

Discussion

56.	Young India Ltd. Has a Operating Profit Ratio of `20%` . To maintain this ratio at `25%` management mayA. Increase selling price of stock - in trade.B. Reduce Cost of Revenue from Operations.C. Increase selling price of stock - in Trade and to reduce Cost of Revenue from Operations.D. All of the above.
Answer» Correct Answer - d

Discussion

57.	From the following , which ratio is not a part of Profitability Ratio :A. Liquid RatioB. Gross Profit RatioC. Operating RatioD. Net Profit Ratio
Answer» Correct Answer - a

Discussion

58.	If opening inventory is Rs. 1,20,000, Cost of Revenue from Operations is Rs.10,00,000. and Inventory Turnover Ratio is 5 Times , then Closing Inventory will beA. Rs.3,20,000.B. Rs.2,80,000.C. Rs.1,60,000.D. Rs.4,00,000.
Answer» Correct Answer - b

Discussion

59.	Calculate Operating Profit Ratio If from Operations is Rs.5,00,000 . Operations Profit is Rs.75,000.A. `25%`B. `12%`C. `13.33%`D. `15%`
Answer» Correct Answer - d

Discussion

60.	If Revenue from Operations is Rs.1,60,000 and Gross Profit is Rs.40,000 , Gross Profit will beA. `30%`B. `25%`C. `40%`D. `50%`
Answer» Correct Answer - b

Discussion

61.	Revenue from operations Rs.9,00,000. Gross Profit `25%` on Cost , Operating Expenses Rs.90,000. Operating Ratio will beA. `100%`B. `50%`C. `90%`D. `10%`
Answer» Correct Answer - c

Discussion

62.	Current Assets are Rs. 4,00,000, Inventories Rs. 2,00,000 , Working Capital Rs.2,40,000 Calculate Current RatioA. `2.5 : 1`B. `1 : 1`C. `2 : 1`D. `1 : 2`
Answer» Correct Answer - a

Discussion

63.	Anmol Ltd. Is to redeem 10,000 `8%` Debentures of Rs.100 each at a premium of Rs.10 Amount that should be set aside to Debenture Redemption Reserve (DRR) isA. Rs.2,50, 000.B. Rs.10,00,000.C. Rs.11,00,000.D. None of these.
Answer» Correct Answer - a

Discussion

64.	Gaining Ratio isA. New Ratio - Sacrificing Ratio.B. Old Ratio - Sacrificing Ratio.C. New Ratio - Old Ratio.D. Old Ratio- New Ratio.
Answer» Correct Answer - c New Ratio - Old Ratio.

Discussion

65.	Patens and Trademarks are example ofA. Intangible Fixed Assets.B. Tangible Fixed Assets.C. Intangible Assets Under Development.D. Capital Work - in Progress.
Answer» Correct Answer - a Intangible Fixed Assets.

Discussion

66.	Gaining Ratio isA. Old profit - sharing Ratio less new profit - sharing Ratio.B. Old profit - sharing Ratio.C. New profit - sharing Ratio.D. New profit - sharing Ratio less old profit -sharing Ratio.
Answer» Correct Answer - d New profit - sharing Ratio less old profit -sharing Ratio.

Discussion

67.	Surplus , i.e., Balance in Statement of Profit and Loss in shown asA. Share Capital.B. Reserves and Surplus.C. Other Long - term Liabilities.D. None of these.
Answer» Correct Answer - b Reserves and Surplus.

Discussion

68.	Which of the following is not the mode of dissolution of the firm?A. By Mutual AgreementB. On happening of an eventC. Dissolution by courtD. Retirement of a partner
Answer» Correct Answer - By Mutual Agreement

Discussion

69.	At the time of issue of debentures, Debentures Account isA. credited by the amount received.B. credited by the issue price of the debentures.C. credited by the nominal (face) value of the debentures.D. None of these.
Answer» Correct Answer - c

Discussion

70.	Debenture interest is paidA. at a predetermined rateB. at variable rate.C. at a rate based on net profit of the company.D. at a rate as determined by the company from time to time.
Answer» Correct Answer - a at a predetermined rate

Discussion

71.	When debentures are issued at a discount , the discount is written offA. after debentures have been redeemed.B. in the year when debentures are issued.C. during the life of the debentures.D. None of these.
Answer» Correct Answer - b

Discussion

72.	Interest on Debentures is paid onA. Amount received on Issue.B. Nominal (Face) value.C. On Premium.D. None of these.
Answer» Correct Answer - b

Discussion

73.	Amount is set aside to Debenture Redenption Reserve (DRR) byA. All the companies.B. All companies except Banking Company.C. All companies except all india Financial institutions regulated RBI.D. All companies except banking Company and All india Fianncial institutions regulated by RBI.
Answer» Correct Answer - d

Discussion

74.	Amount is not set aside to Debenture Redemption Reserve (DRR) ifA. The debentures are not convertible.B. The debentures are partly convertible.C. The debentures are fully convertible.D. None of these.
Answer» Correct Answer - c

Discussion

75.	Salaries paid during the year ended 31 st March , 2019 is Rs. 36,000 . Salaries paid in advence at the end of previous year ended 31 st March , 2019 will beA. Rs. 54,000.B. Rs. 36 ,000.C. Rs. 90, 000.D. Rs.18,000.
Answer» Correct Answer - c

Discussion

76.	If a share Rs.10 issued at a premium of Rs.2 on which the full amount has been called and Rs.8 (including premium ) paid is forfeited, the Share Capital Account Should be debited withA. Rs.12.B. Rs.10.C. Rs.8.D. Rs. 6.
Answer» Correct Answer - b

Discussion

77.	Goodwill of the firm is not affected byA. Location of the firm.B. Favourable contracts.C. Better customer service.D. None of these.
Answer» Correct Answer - d

Discussion

78.	When Goodwill is not purchased, Goodwill canA. not be accounted in the books.B. be accounted in the books.C. be partially accounted in the books.D. beaccounted as per the agreement of the partners.
Answer» Correct Answer - a

Discussion

79.	Purchased goodwill arises at the time ofA. Closure of business.B. Purchase of business.C. opening of a new business.D. All of these.
Answer» Correct Answer - b

Discussion

80.	Total assets of a firm including fictitions assets of Rs. 5,000 are Rs. 85,000. Liabilities of the firm are Rs.30,000 . Normal rate of rete of return is `10%` and the average profit of the is firm is Rs.8,000 . Calculate goodwill as per capitalisation of super profit.A. Rs. 20,000B. Rs.30,000C. Rs. 25,000D. None of These.
Answer» Correct Answer - b

Discussion

81.	Under the Capitalisation of Super Profit , the formula for calculating the foodwill isA. Super profit multiplied by the rate of return.B. Average profit multiplied by the rate return.C. Super profit divided by the rate of return.D. Average profit divided by the rate of return.
Answer» Correct Answer - c

Discussion

82.	Discount or Loss on Issue of Debentures is written off fromA. Securities Premium Reserve.B. Securities Premium Reserve (if it exists) and thereafter from Statement of profit and Loss.C. Statement of profit and loss.D. None of these.
Answer» Correct Answer - b

Discussion

83.	Premium on issued of shares can be used forA. issue of fully paid bonus shares.B. writing off preliminary expenses.C. writing off discount/ loss on issue of debentures.D. All the above.
Answer» Correct Answer - d

Discussion

84.	When shares are forfeited , share Capital Account is debited withA. nominal value of shares.B. called- up value of shares.C. paid - up value of shares.D. market value of shares.
Answer» Correct Answer - b

Discussion

85.	MIG Ltd. Forfeited 40 shares of Rs.10 each issued at a premium of `4%` to Raj had applied for 48 shares . After having paid Rs. (including Rs.2 premium), he did not pay allotment money of Rs.2 (including Rs.1 premium) and on his subsequent failure to pay the first call of Rs. 3 (including Rs. 1 Premium ) his shares were forfeited. the amount to credited to Forfeited shares Account isA. Rs.288.B. Rs.200.C. Rs.192.D. Rs.160.
Answer» Correct Answer - b

Discussion

86.	As per Accounting Standard -26,A. purchased goodwill is accounted in the books of account.B. self-generated goodwill is accounted in the books of account.C. both purchased and self - generated goodwill are accounted in the books of account.D. None of the above.
Answer» Correct Answer - a purchased goodwill is accounted in the books of account.

Discussion

87.	Interst on capital is allowedA. on the opening capital.B. on the capital at the year end.C. on average capital of the year.D. None of these.
Answer» Correct Answer - a on the opening capital.

Discussion

88.	A company has issued 10,000 Equity shares of Rs.10 each and it has called the total nominal value. It has received the total amount , except the final call of Rs.3 on 500 Equity shares will be shown asA. Subscribed and fully paid - up.B. Subscibed but not fully paid - up.C. Issued share capital.D. None of these.
Answer» Correct Answer - b

Discussion

89.	Subscriprion received during the year 2018 -19 : Rs. 1,50,000 . Outstanding Subcription as on 31 st March 2018 : Rs. 1,00,000 . The amount shown as subscription receipt will beA. Rs. 50,000B. Rs. 1,50,000C. Rs. 1,00,000D. None of these.
Answer» Correct Answer - a

Discussion

90.	Subscriprion received during the year 2018 -19 : Rs. 1,50,000, Subscription Rs. 75,000 is outstanding:A. Rs. 1,50,000B. Rs.75,000C. Rs. 2,25,000D. None of These.
Answer» Correct Answer - c

Discussion

91.	If the loss on reissue of shares is less than the amount forfeited, the surplus is transferred toA. Capital Reserve.B. An asset.C. Revenue Reserve.D. None of these.
Answer» Correct Answer - a

Discussion

92.	Interest on Debentures issued as Collateral Security isA. paid.B. not paid.C. may or may not be paidD. None of these.
Answer» Correct Answer - b

Discussion

93.	Debentures issued as Collateral SecurityA. are recorded in the books.B. are not recorded in the books.C. may or may not be recorded in the books.D. None of these.
Answer» Correct Answer - c

Discussion

94.	Decrease in the value of assets at time of retirement of a partner isA. Credited to Revaluation Account.B. Debited to Revaluation Account.C. Debited to Profit and Loss Account.D. None of these.
Answer» Correct Answer - b

Discussion

95.	Decrease in liability at the time of retirement of a partner isA. Credited to Revaluation Account.B. Debited to Revaluation Account.C. Debited to Profit and Loss Account.D. None of these.
Answer» Correct Answer - a

Discussion

96.	Angel Ltd. , a stock broker , purchased 5,000 shares of Tata Housing Ltd. It isA. Operating Activity.B. Investing Activity.C. Financing Activity.D. None of these.
Answer» Correct Answer - b Investing Activity.

Discussion

97.	Buy back of shares is an extra - ordinary item forA. Operating Activities.B. Investing ActivitiesC. Financing Activities.D. Cash and Cash Equivalents.
Answer» Correct Answer - c Financing Activities.

Discussion

98.	Voluntary retirement compensation paid to employees Example of extraordinary item forA. Operating Activities.B. Investing ActivitiesC. Financing Activites.D. Cash and Cash Equivalents.
Answer» Correct Answer - a Operating Activities.

Discussion

99.	Whlle preparing Common - size Income Statement , each item of Income Statement is expressed as `%` ofA. Revenue from Operations.B. Other income.C. Total Income.D. Profit before Tax.
Answer» Correct Answer - a

Discussion

100.	Which analysis is considered as static?A. Horizontal AnalysisB. Vertical AnalysisC. Internal AnalysisD. External Analysis
Answer» Correct Answer - b

Discussion

Explore topic-wise InterviewSolutions in .

Income and Expenditure Account is prepared onA. Cash BasisB. Accrual Basis.C. Both (a) and (b)D. None of These.

Main source of Income for a Not - for Profit Organisation isA. Rent.B. Salaries.C. Donations and Subscriptions.D. Sale of Assets.

Identity capital receipt from the following:A. Life Membership FeesB. Rent ReceiptC. Entrance feesD. Sports expenses.

Sincere Ltd. Has a Proprietary Ratio of `25%` . To maintain this ratio at `30%` management mayA. Increase Equity.B. Reduce Debt.C. Increase Equity and Reduce Debt.D. All of these.

Identity revenue receipt from the following :A. Donations for BuildingB. SubscriptionC. Life Membership FeesD. Legacy donation for Sports fund.

From the following , which ratio is not a part of Profitability Ratio :A. Liquid RatioB. Gross Profit RatioC. Operating RatioD. Net Profit Ratio

If opening inventory is Rs. 1,20,000, Cost of Revenue from Operations is Rs.10,00,000. and Inventory Turnover Ratio is 5 Times , then Closing Inventory will beA. Rs.3,20,000.B. Rs.2,80,000.C. Rs.1,60,000.D. Rs.4,00,000.

Calculate Operating Profit Ratio If from Operations is Rs.5,00,000 . Operations Profit is Rs.75,000.A. `25%`B. `12%`C. `13.33%`D. `15%`

If Revenue from Operations is Rs.1,60,000 and Gross Profit is Rs.40,000 , Gross Profit will beA. `30%`B. `25%`C. `40%`D. `50%`

Revenue from operations Rs.9,00,000. Gross Profit `25%` on Cost , Operating Expenses Rs.90,000. Operating Ratio will beA. `100%`B. `50%`C. `90%`D. `10%`

Current Assets are Rs. 4,00,000, Inventories Rs. 2,00,000 , Working Capital Rs.2,40,000 Calculate Current RatioA. `2.5 : 1`B. `1 : 1`C. `2 : 1`D. `1 : 2`

Anmol Ltd. Is to redeem 10,000 `8%` Debentures of Rs.100 each at a premium of Rs.10 Amount that should be set aside to Debenture Redemption Reserve (DRR) isA. Rs.2,50, 000.B. Rs.10,00,000.C. Rs.11,00,000.D. None of these.

Gaining Ratio isA. New Ratio - Sacrificing Ratio.B. Old Ratio - Sacrificing Ratio.C. New Ratio - Old Ratio.D. Old Ratio- New Ratio.

Patens and Trademarks are example ofA. Intangible Fixed Assets.B. Tangible Fixed Assets.C. Intangible Assets Under Development.D. Capital Work - in Progress.

Gaining Ratio isA. Old profit - sharing Ratio less new profit - sharing Ratio.B. Old profit - sharing Ratio.C. New profit - sharing Ratio.D. New profit - sharing Ratio less old profit -sharing Ratio.

Surplus , i.e., Balance in Statement of Profit and Loss in shown asA. Share Capital.B. Reserves and Surplus.C. Other Long - term Liabilities.D. None of these.

Which of the following is not the mode of dissolution of the firm?A. By Mutual AgreementB. On happening of an eventC. Dissolution by courtD. Retirement of a partner

At the time of issue of debentures, Debentures Account isA. credited by the amount received.B. credited by the issue price of the debentures.C. credited by the nominal (face) value of the debentures.D. None of these.

Debenture interest is paidA. at a predetermined rateB. at variable rate.C. at a rate based on net profit of the company.D. at a rate as determined by the company from time to time.

When debentures are issued at a discount , the discount is written offA. after debentures have been redeemed.B. in the year when debentures are issued.C. during the life of the debentures.D. None of these.

Interest on Debentures is paid onA. Amount received on Issue.B. Nominal (Face) value.C. On Premium.D. None of these.

Amount is set aside to Debenture Redenption Reserve (DRR) byA. All the companies.B. All companies except Banking Company.C. All companies except all india Financial institutions regulated RBI.D. All companies except banking Company and All india Fianncial institutions regulated by RBI.

Amount is not set aside to Debenture Redemption Reserve (DRR) ifA. The debentures are not convertible.B. The debentures are partly convertible.C. The debentures are fully convertible.D. None of these.

Salaries paid during the year ended 31 st March , 2019 is Rs. 36,000 . Salaries paid in advence at the end of previous year ended 31 st March , 2019 will beA. Rs. 54,000.B. Rs. 36 ,000.C. Rs. 90, 000.D. Rs.18,000.

If a share Rs.10 issued at a premium of Rs.2 on which the full amount has been called and Rs.8 (including premium ) paid is forfeited, the Share Capital Account Should be debited withA. Rs.12.B. Rs.10.C. Rs.8.D. Rs. 6.

Goodwill of the firm is not affected byA. Location of the firm.B. Favourable contracts.C. Better customer service.D. None of these.

When Goodwill is not purchased, Goodwill canA. not be accounted in the books.B. be accounted in the books.C. be partially accounted in the books.D. beaccounted as per the agreement of the partners.

Purchased goodwill arises at the time ofA. Closure of business.B. Purchase of business.C. opening of a new business.D. All of these.

Under the Capitalisation of Super Profit , the formula for calculating the foodwill isA. Super profit multiplied by the rate of return.B. Average profit multiplied by the rate return.C. Super profit divided by the rate of return.D. Average profit divided by the rate of return.

Discount or Loss on Issue of Debentures is written off fromA. Securities Premium Reserve.B. Securities Premium Reserve (if it exists) and thereafter from Statement of profit and Loss.C. Statement of profit and loss.D. None of these.

Premium on issued of shares can be used forA. issue of fully paid bonus shares.B. writing off preliminary expenses.C. writing off discount/ loss on issue of debentures.D. All the above.

When shares are forfeited , share Capital Account is debited withA. nominal value of shares.B. called- up value of shares.C. paid - up value of shares.D. market value of shares.

As per Accounting Standard -26,A. purchased goodwill is accounted in the books of account.B. self-generated goodwill is accounted in the books of account.C. both purchased and self - generated goodwill are accounted in the books of account.D. None of the above.

Interst on capital is allowedA. on the opening capital.B. on the capital at the year end.C. on average capital of the year.D. None of these.

Subscriprion received during the year 2018 -19 : Rs. 1,50,000 . Outstanding Subcription as on 31 st March 2018 : Rs. 1,00,000 . The amount shown as subscription receipt will beA. Rs. 50,000B. Rs. 1,50,000C. Rs. 1,00,000D. None of these.

Subscriprion received during the year 2018 -19 : Rs. 1,50,000, Subscription Rs. 75,000 is outstanding:A. Rs. 1,50,000B. Rs.75,000C. Rs. 2,25,000D. None of These.

If the loss on reissue of shares is less than the amount forfeited, the surplus is transferred toA. Capital Reserve.B. An asset.C. Revenue Reserve.D. None of these.

Interest on Debentures issued as Collateral Security isA. paid.B. not paid.C. may or may not be paidD. None of these.

Debentures issued as Collateral SecurityA. are recorded in the books.B. are not recorded in the books.C. may or may not be recorded in the books.D. None of these.

Decrease in the value of assets at time of retirement of a partner isA. Credited to Revaluation Account.B. Debited to Revaluation Account.C. Debited to Profit and Loss Account.D. None of these.

Decrease in liability at the time of retirement of a partner isA. Credited to Revaluation Account.B. Debited to Revaluation Account.C. Debited to Profit and Loss Account.D. None of these.

Angel Ltd. , a stock broker , purchased 5,000 shares of Tata Housing Ltd. It isA. Operating Activity.B. Investing Activity.C. Financing Activity.D. None of these.

Buy back of shares is an extra - ordinary item forA. Operating Activities.B. Investing ActivitiesC. Financing Activities.D. Cash and Cash Equivalents.

Voluntary retirement compensation paid to employees Example of extraordinary item forA. Operating Activities.B. Investing ActivitiesC. Financing Activites.D. Cash and Cash Equivalents.

Whlle preparing Common - size Income Statement , each item of Income Statement is expressed as `%` ofA. Revenue from Operations.B. Other income.C. Total Income.D. Profit before Tax.

Which analysis is considered as static?A. Horizontal AnalysisB. Vertical AnalysisC. Internal AnalysisD. External Analysis