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Financial Accounting CLAS-TYBAF PRACTICE EXAMS, Exams of Financial Accounting

Johnson University Florida (JUFL)Financial Accounting

Financial accounting is the process of recording, summarizing, and reporting a company's business transactions through financial statements. These statements are: (1) the income statement, (2) the balance sheet, (3) the cash flow statement, and (4) the statement of retained earnings.

Typology: Exams

2024/2025

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MAHARSHI DAYANAND COLLEGE FA-V TYBAF

MAHARSHI DAYANAND COLLEGE OF ARTS, SCIENCE & COMMERCE

Class- TYBAF

SEMESTER -V

Subject: Financial Accounting

SEM- I (ATKT)

1. According to the Companies Act the underwriting commission on shares should not exceed

a) 5%

b) 2.5%

c) 10%

d) 1%

2. The underwriting commission is calculated

a) Net Liability of the share value

b) Firm Underwriting value of the share

c) Marked Application of the share value

d) Issue price of the shares underwritten

3. Unmarked applications refer to

a) Firm Underwriting

b) Applications issued by the company

c) Applications bearing the stamp of underwriter

d) Applications from the public received directly by the company without bearing any stamp of

underwriter

4. When all the shares are underwritten by the underwriter, it is called

a) Firm Underwriting

b) Partial Underwriting

c) Complete Underwriting

d) None of the above

5. Marked Applications refer to

a. Applications bearing the seal of underwriter

b. Applications bearing the signature of applicants

c. Application issued by company

d. None of the above

Partial preview of the text

Download Financial Accounting CLAS-TYBAF PRACTICE EXAMS and more Exams Financial Accounting in PDF only on Docsity!

MAHARSHI DAYANAND COLLEGE OF ARTS, SCIENCE & COMMERCE

Class- TYBAF

SEMESTER - V

Subject: Financial Accounting

SEM- I (ATKT)

According to the Companies Act the underwriting commission on shares should not exceed a) 5% b) 2.5% c) 10% d) 1%
The underwriting commission is calculated a) Net Liability of the share value b) Firm Underwriting value of the share c) Marked Application of the share value d) Issue price of the shares underwritten
Unmarked applications refer to a) Firm Underwriting b) Applications issued by the company c) Applications bearing the stamp of underwriter d) Applications from the public received directly by the company without bearing any stamp of underwriter
When all the shares are underwritten by the underwriter, it is called a) Firm Underwriting b) Partial Underwriting c) Complete Underwriting d) None of the above
Marked Applications refer to a. Applications bearing the seal of underwriter b. Applications bearing the signature of applicants c. Application issued by company d. None of the above

R Ltd. Issued a debenture of Rs.100 each at Rs.90. the underwriting commission will be paid on a. Rs. b. Rs. c. R. d. Rs.
M Ltd. Issued shares at the face value of Rs.100 with a premium of Rs.20 per share. The underwriting commission will be calculated on a. Rs. b. Rs. c. Rs. d. Rs.
The underwriter is entitled to claim remuneration on a. The issue price of shares underwritten b. The face value of shares actually purchased c. The face value of shares not purchased by him d. None of the above
If the whole of the issue of shares or debentures is underwritten it is known as a. Partial Underwriting b. Sole Underwriting c. Complete or Full Underwriting d. None of the above
If the part of the issue of shares or debentures is underwritten, it is termed as a. Partial Underwriting b. Complete Underwriting c. Firm Underwriting d. None of the above
When an underwriter agrees to buy a definite number of shares in addition to unsubscribed shares, it is termed as a. Partial Underwriting

When the issue is underwritten by two or more underwriters it is called as a. Joint underwriting b. Sole underwriting c. Partial Underwriting d. Firm Underwriting
Underwriting commission is payable to underwriters by a. The company b. The Government c. The Registrar d. The shareholders
In order to spread the risk of under-subscription, the principal underwriters may appoint a. Broker b. Agent c. Transfer Agent d. Sub-Underwriter
____ means an agreement to subscribe to the Securities of a body corporate when the existing shareholders of such body corporate or the public do not subscribe to the securities offered to them. a. Contract b. Brokerage c. Underwriting d. None of the above
The provisions of buy back of shares are specified in sections ____ of the Companies Act. a. 68 b. 75 c. 78 d. 80
Maximum buy back in a year can be ____ a. 10 % b. 20 %

c. 25 % d. 30 %

The premium paid on buy back should be provided out of ____ a. Securities Premium b. Share Capital c. Statutory Reserve d. Capital Reserve
The Debt Equity ratio after buy back should not exceed _____ a. 2: b. 1: c. 1: d. 3:
The securities under buy back cannot be issued within _____ a. 1 Year b. 2 Year c. 6 months d. 3 Months
Board of Director can approve buy back upto _____ a. 25 % b. 10 % c. 20 % d. 5 %
The Company before buy back has to submit a declaration of ____ a. Liquidity b. Solvency c. Insolvency d. Competency
A Company can buy back _____ a. Preference Shares

a. Memorandum of Association b. Auditors of the company c. Articles of Association d. Central Government

Before buy back all the shares must be _____. a. Partly paid b. Fully Paid c. Fully Subscribed d. None of the above
Buy back must be completed within _____. a. 12 months b. 3 Months c. 6 Months d. 2 months
Capital redemption reserve can be utilized for _____. a. Issue of bonus shares b. Writing off losses c. Providing Preliminary expenses d. None of the above
Share Capital (Rs. 10) = Rs. 50,00, General Reserve = Rs. 6,50, Securities Premium = Rs. 5,40, Profit and loss A/c = Rs. 3,75, The Company issued 5000 Debentures of Rs. 100 Each to Finance Buy Back. The Company decide to buy back 20% of its Paid-up Capital at Rs.15 Each. The amount to be transferred to capital redemption reserve is _____. a. Rs. 5,00, b. Rs. 7,50, c. Rs. 2,50,

d. Rs. 10,00,

Equity capital (Rs.10)=Rs. 10,00, General Reserve = Rs. 12,00, Profit & Loss A/c = Rs. 1,00, Securities Premium = Rs. 2,00, The maximum buy back is ______. a. Rs. 45,00, b. Rs. 6,25, c. Rs. 5,50, d. Rs. 3,00,
CRR = Face value of shares to be bought back – ______. a. Proceeds of fresh issue of Shares b. Proceeds of fresh issue of Debentures c. Both (a) and (b) d. None of the above
Amalgamation adjustment account is opened in the books of transferee company to incorporate a) The assets of the transferor company b) The liabilities of the transferor company c) The statutory reserves of the transferor company d) None of the above
Under the ‘Purchase method of accounting’, the transferee company incorporates in its books: a) The assets and liabilities of the transferor company. b) The assets, liabilities and statutory reserves of the transferor company c) The assets, liabilities and reserves of the transferor company d) None of the above
Goodwill arising on amalgamation is to be a) Retained in the books of the transferee company b) Amortised to income on a systematic basis c) Adjusted against reserves reserves and Profit and Loss A/c of the transferee company immediately.

a) Capital Reserve b) Goodwill c) Profit & Loss A/c d) None of the above

If there is a provision (RDD) against the debtors, such debtors are transferred to the Realisation a/c at a) Net Amount i.e. Debtors less RDD b) Current Market Value c) Gross Amount Debtors d) None of the above
Purchase consideration for the amalgamation means a) Aggregate of shares and cash to shareholders b) Aggregate of shares, cash and payments to debentureholders c) Shares, cash payments to debentureholders and expenses of realisation. d) None of the above
Loss or profit on realisation a/c is transferred by the transferor company, under amalgamation to a) Preference shareholders a/c b) Equity shareholders a/c c) Profit & Loss appropriation a/c d) None of the above
Intrinsic value of each equity share of the transferor company is Rs. 250 and that of the transferee company is Rs. 400. The ratio of exchange of shares on the basis of intrinsic value is a) 2 : 1 b) 8 : 8 c) 8 : 5 d) None of the above
Amalgamation of companies is governed by --------------------------. a) AS- 13 b) AS- 14 c) AS- 9 d) AS- 11
The scheme of amalgamation can involve------------------ companies. a) two b) one c) three d) none of the above
The amalgamation requires approval of ---------------------------- a) High Court b) Registrar of Companies c) Central government d) Directors

Approval by--------------------------- a shareholders is necessary for treatment as in nature of merger. a) 51% b) 75% c) 90% d) 80%
In case of pooling of interest method, transferee company should record assets at a) cost b) market value c) agreed value d) book value
Amalgamation Adjustment Reserve Account is required in respect of a) general reserve b) statutory reserve c) security premium d) capital reserve
The excess of net asset value over consideration is ------------------------------ a) capital reserve b) market value c) profit or loss d) goodwill
AS-14 covers amalgamation of -------------------------. a) companies b) firms c) firm and company d) Directors and Partners
On amalgamation, the transferee company transfer its assets to Realisation Account at a) agreed value b) book value c) market value d) original cost
The assets which is not taken under the net asset method of calculating purchase consideration is a) Loose stools b) bills receivable c) machinery d) share issue expenses
The amalgamation adjustment account reserve should be shown under-------------------- in the balance sheet.

b) statutory reserve c) security premium d) capital reserve

Amalgamation in the nature of merger minimum ………………… % of the face value of the equity shares become equity shareholders in purchasing company. a) 51% b) 75% c) 90% d) 80%
In …………………. Reconstruction an existing company incurring losses for long time is taken over by new company. a) Amalgamation b) Absorption c) External reconstruction d) Internal reconstruction
If the business of ABC Limited, a loss-making company, is taken over by a new company ABC (New) Limited, it is called ………………… reconstruction. a) Amalgamation b) Absorption c) External reconstruction d) Internal reconstruction
AS 14 recommends that Goodwill arising on amalgamation should be written off within ………………… years. a) 5 b) 6 c) 7 d) 8
Dissolution expenses paid and borne by purchasing company are debited in its books to ………………. Account. a) capital reserve b) market value c) profit or loss d) goodwill
Two companies amalgamation to secure various advantages like a) Avoiding competition b) Decreasing efficiency c) Economies of small scale production d) All of the above

In merger difference between purchase consideration and share taken over and normally deducted as under: i) General reserve of new company ii) General reserve of old company iii) Capital Reserve iv) Profit & Loss of old company a) iii, ii, iv, i b) i, iii, ii, iv c) iv, iii, ii, i d) ii, i, iv, iii
If all reserves are used up and balance in reserve a/c is nil in merger excess difference in purchase consideration shown in the balance of new company under: a) Preliminary Expenses b) Profit & Loss A/c (Debit) c) Amalgamation Adjustment Account d) Any of the above
If shares taken over value is more than the purchase consideration than surplus than surplus arising in merger transferred to a) Capital Reserve b) General Reserve c) Security Premium d) Pension Fund
Which of the following are not a statutory reserve a) Exports profit reserves b) Investment allowance reserve c) Amalgamation adjustment account d) Development rebate reserve
Disclosures under AS 14 should be made in the First Final A/c prepared after amalgamation a) Name and nature of the business of the amalgamating companies. b) Date of amalgamation for accounting purposes. c) Method of accounting used d) All of the above
At the time of amalgamation, purchase consideration does not include a) The sum which the transferee company will directly pay to the creditors of the transferor company b) Preference share issued by the transferee company to the preference shareholders of the transferor company c) Payment made in the form of assets by the transferee company to the shareholders of the transferor company d) Any of the above
As per AS14, purchase consideration is the amount agreed payable to

(b) no entry is passed in the books of the vendor company (c) no entry is passed in the books of the purchasing company (d) no entry is passed in the books of the purchasing as well as the vendor company

On amalgamation, if pref. shares are settled at a premium (a) the premium is credited to Realisation A/c (b) the premium is debited to Realisation A/c (c) the premium is credited to Security Premium A/c (d) the premium is debited to Capital Reserve A/c
The value of assets or liabilities not taken over by the purchasing company is (a) ignored while calculating purchase consideration by net payment method (b) ignored while calculating purchase consideration by net asset method (c) considered while calculating purchase consideration by net asset method (d) no entry is passed in the books of the purchasing as well as the vendor company
The Unamortized Expenditure not written off is (a) ignored while calculating purchase consideration by net payment method (b) ignored while calculating purchase consideration by net asset method (c) considered while calculating purchase consideration by net asset method (d) no entry is passed in the books of the purchasing as well as the vendor company
The amounts paid by the purchasing company to discharge the debentures are (a) ignored while calculating purchase consideration by net payment method (b) ignored while calculating purchase consideration by net asset method (c) considered while calculating purchase consideration by net payment method (d) no entry is passed in the books of the purchasing as well as the vendor company
The amounts paid by the purchasing company to discharge the contingent liabilities are (a) ignored while calculating purchase consideration by net payment method (b) ignored while calculating purchase consideration by net asset method (c) considered while calculating purchase consideration by net payment method (d) no entry is passed in the books of the purchasing as well as the vendor company
The amounts paid by the purchasing company to meet the expenses of winding up are

(a) ignored while calculating purchase consideration by net payment method (b) ignored while calculating purchase consideration by net asset method (c) considered while calculating purchase consideration by net payment method (d) no entry is passed in the books of the purchasing as well as the vendor company

The agreed values at which the assets or liabilities are taken over by the purchasing company are (a) ignored while calculating purchase consideration by net payment method (b) ignored while calculating purchase consideration by net asset method (c) considered while calculating purchase consideration by net payment method (d) no entry is passed in the books of the purchasing as well as the vendor company 10 0. As per AS – 14 purchase consideration is what is payable to (a) Shareholders (b) Creditors (c) Debentureholders (d) Shareholders and Debentureholders
When amalgamation is in the nature of merger, the accounting method to be followed is: (a) Equity method (b) Purchase method (c) Pooling of interests method (d) Consolidated method
When amalgamation is in the nature of Purchase, the accounting method to be followed is: (a) Equity method (b) Purchase method (c) Pooling of interests method (d) Consolidated method
Amalgamation is said to be in the nature of merger if: (a) All assets and liabilities of transferor company are taken over by the transferee company. (b) Business of transferor company is intended to be carried on by the transferee company.

(d) P & L A/c.

When the expenses of liquidation are to be borne by the vendor company, then the vendor company debits: (a) Realisation account (b) Bank account (c) Goodwill account. (d) P & L A/c.
When the expenses of liquidation are to be borne by the purchasing company, then the purchasing company debits: (a) Vendor company's account (b) Bank account (c) Goodwill account. (d) P & L A/c.
When the purchasing company makes payment of the purchase consideration, it debits: (a) Business purchase account (b) Assets account (c) Vendor company's account. (d) P & L A/c.
The vendor company transfers preliminary expenses (at the time of absorption) to: (a) Equity shareholders' account (b) Realisation account (c) Purchasing company's account. (d) P & L A/c
A company can be liquidated in any of the three ways a) Compulsory winding up by the court b) Voluntary winding up by the members or Creditors c) Winding up under the supervision of the court d) All of the above
List H shows ___________ Account. a) Deficiency or Surplus b) Preferential Creditors c) Fixed Assets Accounts d) None of the above

When a company is wound up all persons who ceased to be the shareholders within a year before the winding up are placed in the a) A list of Contributories b) B List of contributories c) C List of Contributories d) D List of Contributories
If default is made in delivering the statutory report to the Registrar, the company is likely to face a) Compulsory winding up by the tribunal / court b) Voluntary winding up by members. c) Voluntary winding up b creditors d) None of the above
Board of directors have to make a declaration of solvency in case of a) Compulsory winding up by the tribunal court b) Voluntary winding up by members. c) Voluntary winding up by the creditors. d) None of the above
The official liquidator is appointed in case of a) Compulsory winding up by the tribunal / court b) Voluntary winding up by the members c) Voluntary winding up by members. d) All of the above
In case of Voluntary winding up by creditors the liquidation is carried out by the a) Official Liquidator b) Liquidator appointed by the members c) Liquidators appointed by the creditors d) Any of the above
Statement of affairs should be prepared in the format prescribed in a) Form 153 b) Form 57 c) Schedule VI d) Form 156
Following is treated as over-riding preferential creditor a) Retirement benefits of employees b) Retirement benefits to workers c) Salary ue to employees exceeding Rs. 20, d) Remuneration to Investigator
Remuneration to investigator upon investigation of the affairs of company is treated as a) Secured Creditor b) Over-riding preferential creditor c) Preferential Creditor d) Unsecured Creditor
Amount of Govt. dues that arose within 12 months before the date of winding up is treated as a) Secured Creditor b) Over-riding preferential creditor c) Preferential Creditor d) Unsecured Creditor
Amount of Retirement benefits of employees exceeding Rs. 20,000 per employee is treated as a) Secured Creditor b) Over-riding preferential creditor c) Preferential Creditor d) Unsecured Creditor

Financial Accounting CLAS-TYBAF PRACTICE EXAMS, Exams of Financial Accounting

Related documents

Partial preview of the text

Download Financial Accounting CLAS-TYBAF PRACTICE EXAMS and more Exams Financial Accounting in PDF only on Docsity!

MAHARSHI DAYANAND COLLEGE OF ARTS, SCIENCE & COMMERCE

Class- TYBAF

SEMESTER - V

Subject: Financial Accounting

SEM- I (ATKT)