Company Auditor is responsible–
(A) For directors
(B) For shareholders
(C) For public
(D) For creditors
Answer: For shareholders
More MCQs and Answers on Commerce
1. FEMA stands for–
3. Convertibility of the rupee implies–
4. …………..… has been founded to act as permanent watchdog on the international trade.
5. Which of the following statement is correct?
6. Advance Income-tax is shown in the–
7. A and B were sharing profits of a business in the ratio of 3 : 2. They admit C into partnership, who gets 1/3 of A’s share of profit from A, 1/2 of B’s share of profit from B. The new profit sharing ratio will be–
8. In the absence of a Partnership Deed, the rate of interest allowed on the partner’s loan to the firm is–
9. Interim Dividend is shown–
10. Redeemable Preference shares of Rs. 1‚00‚000 are redeemed at a premium of 5%. With this object equity shares of Rs. 40‚000 are issued at par. What amount should be transferred to Capital Redemption Reserve Account?
11. Given– Opening inventory : Rs. 3,500, Closing inventory : Rs. 1,500, Cost of goods sold : Rs. 22,000. What is the amount of purchase ?
12. Memorandum of Association contains–
13. ‘Table A’ is an alternative to–
14. The ‘Doctrine of Indoor Management’ provides protection to the–
15. By which of the following methods a Company Secretary can be removed from his post ?
16. Which one of the following statements is correct in respect of Duty Drawback Scheme ?
17. In foreign trade, what is the price quoted by a supplier which includes all charges incurred up to door delivery of goods to the buyer, called
18. Consider the following statements– 1. Letter of credit cannot be opened by mail.
19. Under which principle, all the rights of an insured are transferred to insurance company after making payment of claim
20. In a marine insurance, when must the insurable interest exist?
21. Henry Fayol is known for–
22. Unity of command implies having not more than one–
23. ‘x’ and ‘y’ theory of Motivation has been propounded by–
24. Coordination has the following features–
25. Which one of the following is not a barrier in communication?
26. A Company can reissue its forfeited shares–
27. Which of the following is an example of capital expenditure?
28. Given : Average profit of a firm Rs. 21,000, Normal Profit Rs. 18,000
29. A co-operative auditor starts his work of audit from–
30. Accounting for research and development relates to–
31. When does a body corporate become capable forthwith of exercising all the functions of a company?
32. Pohang Steel Company (POSCO) is a company originally based in–
33. Which one of the following is not one of the elements of the 7S McKinsey Model for analyzing and improving organizational effectiveness?
34. Consider the following statements– 1. Aggregate planning implies operational planning concerned with determining a firm’s production requirements and manufacturing capacity.
35. What is the correct sequence of the following steps in a strategic planning process? 1. Inputs 2. Evaluation of alternatives
36. Which one among the following is not true for Special Economic Zones?
37. Which one among the following industries produces the most nonbiodegradable wastes?
38. Brent index is associated with–
39. Which one among the following is not true of the planning Commission?
40. Which one of the following statements about RBI is ‘True’?
41. Control function of management implies–
42. Coordination function of management aims at–
43. “Authority flows downwards from top to the bottom whereas accountability flows upwards from bottom to top.” It is found in–
44. Maslow’s needs hierarchy theory relates to–
45. M.B.O. is a technique of–
46. Pre-incorporation Profit is transferred to–
47. Which of the following is shown in Profit Loss Appropriation A/c ?
48. On liquidation of a Company first payment is made in respect of–
49. Workmen’s Compensation Fund is a–
50. Debentures of Rs. 4,25,000 are issued against the purchase of assets of Rs. 4,50,000. In this case the amount of Rs. 25,000 is–
51. In case of any default made in complying with the provisions relating to the postal ballot, the officer on default will be punishable with which one of the following fines?
52. A listed company opting for buyback of shares under the Companies Act, 1956 has to submit return, after completion of such buy-back within which one of the following periods?
53. Private equity investors invest in a company based mainly on–
54. What is Director Identification Number (DIN) ?
55. Disinvestment in Public Sector is called–
56. Debtors turnover ratio is 4. What is the average collection period ?
57. The net profits of a business after providing for taxation for the past five years are Rs. 80,000, Rs. 85,000, Rs. 92,000, Rs. 1,05,000 and Rs. 1,18,000. Capital employed in the business is Rs. 8,00,000. Normal rate of return is 10%. What is the value of goodwill on the basis of capitalization of super profit method ?
58. A particular firm provided the following data for a year– Current Ratio 2•5 : 1, Liquid Ratio 1•5 : 1, Net Working Capital Rs. 3,00,000. What are the current assets and current liabilities of this firm, respectively ?
59. Depreciation is a process of which one of the following?
60. Establishment expenses of a new machine will be debited to–
61. Audit adopted by banking company is–
62. Which of the following have lien of Company Auditor ?
63. To appoint new auditor in place of retiring auditor, to adopt the procedure, which section of Companies’ Act, 1956 is applicable?
64. “A company has a separate legal existence from its members.” This principle was first laid down in case of–
65. Goodwill is–
66. A Balance Sheet shows only–
67. Discount on Issue of Shares A/c is shown at the–
68. A, B and C are partners sharing profits and losses in the ratio of 4 : 3 : 2. D is admitted for 1/10 share. The new ratio will be–
69. If actual average profit is Rs. 30,000 and normal rate of return is 12%, then capitalization value of the profits will be–
70. Under which Section of Companies’ Act an auditor has a right to participate and to speak in the General Meeting?
71. New profit sharing ratio is calculated at the time of–
72. Consider the following– Amortization refers to writing off the value of (1) tangible assets (2) intangible assets (3) fictitious assets. Which of the above is/are correct ?
73. The following information is disclosed by ‘A’– Rs. Provision for doubtful debts as on 1.1.2012 : 6,000 Bad debts written off during the year 2012 : 1,200 Total debtors as on
31.12.2012 : 80,000 A provision for Doubtful Debts to be made @ 5% What is the amount to be shown on the credit side of P/L A/c ?
74. What is reduction of paid-up share capital called ?
75. Under which of the following methods of depreciation the amount of an asset is never reduced to zero?
76. An insurance claim of Rs. 300 was accepted in respect of stock (inventory) of Rs. 500, which was destroyed by fire. Rs. 200 not covered by insurance should be debited to which one of the following?
77. Auditor shall be punished with imprisonment for a maximum period of ……… under Section 539 for falsification in the books of accounts.
78. “Auditor is not an insurer.” In which of the following cases, the decision has been given?
79. The Section 80A of the Companies’ Act is related with the redemption of–
80. Company Auditor is responsible–
81. In Balance Sheet, Audit Accounts are audited–
82. The share of new partner in the profits is 1/5 and his capital is Rs. 20,000. The new profit sharing ratio is 3 : 1 : 1. The share of partners in total capital will be–
83. At the time of dissolution the loss of the business, will be compensated first of all from–
84. The meaning of written down value is–
85. Internal check is a part of–
86. Cost Audit Report is to be submitted to–
87. A company auditor addresses his report to–
88. Which of the following Sections of the Companies’ Act 1956 relates to the maintenance of proper books of accounts?
89. X and Y are partners sharing profits in the ratio of 4 : 3. They admit a new partner Z and new profit sharing ratio is 7 : 4 : 3. The sacrificing ratio between X and Y will be–
90. BIPA with Sudan comes into effect was the news, it is an agreement for–