Advance Accounting MCQs PDF

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mcqs for the 2 chapters...

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Specialized Areas in Advance Accounting Chapter 1 Q1. (AS 7) has been issued by the Institute of Chartered Accountants of India on ‘Accounting for __________’. 1. Construction Contracts 2. Company Contracts 3. Contract Contracts 4. All of the above Ans: -1 Q2. ________ one who undertakes and executes work under a contract. 1. Contractee 2. Contractor 3. Contract 4. Allocation of Cost and Revenue Ans: -2 Q3. ________ one for whom work is undertakes. 1. Contract 2. Project based 3. Contractee 4. Contractor Ans: -3 Q4. Which of the following is/are features of Construction Contracts? 1. Variations 2. Project based 3. Provision of Services 4. Incentive Payments 5. None of the above

6. All of the above Ans: -6 Q5. Which of the following are the types of construction contracts? 1. Fixed price Contracts 2. Cost plus Contracts 3. None of the above 4. All of the above Ans: -4 Q6. What are the two methods of Accounting for Construction Contracts? 1. Percentage of Completion Method 2. Completed Contract Method 3. All of the above 4. None of the above Ans: -3 Q7. In case of contracts which are in the early stage of completion what percentage of profit should be transferred to the Profit and Loss account? 1. 1/4th 2. 2/4th 3. 2/3rd 4. 3/4th Ans: -1 Q8. If contracts is completed less than 25% what amount of profit should be taken into account? 1. 1/3rd 2. 0 3. 2/3rd 4. 1/4th

Ans: -2 Q9. If contracts is completed between 25% and 50% what amount of profit should be taken into account? 1. 0 2. 2/3rd 3. 1/3rd 4. 1/4th Ans: -3 Q10. If the contract is completed more than 50% what amount of profit should be taken into account? 1. 2/3rd 2. 0 3. 1/3rd 4. 1/5th Ans: -1 Q11. The contractee should be never be shown as a _______ for the contract price until the contract has been completed. 1. Creditor 2. Purchaser 3. Seller 4. Debtor Ans: -4 Q12. The contractee should be never be shown as a _______ for the cash received until the contract is completed. 1. Creditor 2. Debtor 3. Seller 4. Purchaser Ans: -1

Q13. Which clause is provided to safeguard the interests on both sides of the contract against unfavourable changes in the prices? 1. Work- in- progress 2. Escalation Clause 3. Estimates Clause 4. Completion Clause Ans: -2 Q14. What is the alternate name for Escalation Clause? 1. Management Clause 2. Completion Clause 3. Escalator Clause 4. None of the above Ans: -3 Q15. Contract account for different work sites are maintained in the _________. 1. Ledger 2. Material ledger 3. Overhead ledger 4. Contract ledger Ans: -4 Q16. Section 6 stands for 1. Transfer of title 2. Extension of registration 3. Function and duties of promoter 4. Rights and duties of allottees Ans: -2 Q17. Section 17 stands for 1. Transfer of title 2. Offences of companies 3. Miscellaneous

4. Compounding of offences Ans: -1 Q18. Section 69 stands for 1. Power to Adjudicate 2. Finance, Accounts, Audit & Reports 3. Offences of companies 4. Miscellaneous Ans: -3 Q19. Section 79 to 92 stand for 1. Miscellaneous 2. Transfer of title 3. Finance, Accounts, Audit & Report 4. Extension of registration Ans: -1 Q20. Section 73 to 78 stand for 1. Transfer of title 2. Finance, Accounts, Audit & Report 3. Functions and duties of promoter 4. Offences of companies Ans: -2 Q21. Section 16 stands for 1. Functions and duties of promoter 2. Transfer of title 3. Obligations of promoter regarding insurance of Real Estate project 4. Return of Amount and Compensation Ans: -3 Q22. Section 18 stands for 1. Functions and duties of promoter 2. Transfer of title

3. Obligations of promoter regarding insurance of Real Estate project 4. Return of Amount and Compensation Ans: -4 Q23. RERA can grant or reject application within _______ days. 1. 20 2. 25 3. 45 4. 30 Ans: -4 Q24. Section 9 stands for 1. Functions of real Estate Agent 2. Grant of Registration 3. Registration of real estate agent 4. Revocation of registration Ans: -3 Q25. Section 5 stands for 1. Functions of real Estate Agent 2. Grant of Registration 3. Registration of real estate agent 4. Revocation of registration Ans: -2 Q26. What is the section in which “Functions of Real Estate Agent” are provides? 1. Sec. 7 2. Sec.5 3. Sec. 10 4. Sec. 4 Ans: -3

Q27. “Functions and Duties of Promotor” are given in which section? 1. Sec. 2. Sec. 3. Sec. 4. Sec.

11 18 20 60

Ans: -1 Q28. “Rights and Duties of Allottees” are given in which section? 1. Sec. 2. Sec. 3. Sec. 4. Sec.

19 20 21 22

Ans: -1 Q29. “Punishment for non- registration” is given under which section? 1. u/s3 2. u/s3 3. u/s3 4. u/s3

sec. sec. sec. sec.

58 60 57 59

Ans: -4 Q30. “Factors to be taken into account by the Adjudicating Officer” are given under which section? 1. Sec. 2. Sec. 3. Sec. 4. Sec.

45 72 25 66

Ans: -2

Sheetal Tendulkar

2010002 Mcom 1st Year Sem II

Specialized Areas in Advance Accounting Chapter 2 Q1. Which section is represented in Amalgamation? 1. AS 2. AS 3. AS 4. AS

13 24 14 26

Ans: -3 Q2. AS 14 has come in effect from 1. 1990 2. 1991 3. 1994 4. 1995 Ans: -4 Q3. What is Amalgamation? 1. Combination of one or more companies into a new company 2. Shutdown of the companies 3. Statutory closed 4. All of the above

Ans: -1 Q4. What is the meaning of Transferor Company? 1. Company which is amalgamated into another company 2. Only profit transfer to another company 3. Complete shutdown of a company 4. None of the above Ans: -1 Q5. The steps in accounting for external reconstruction are: 1. Closing the books of vendor company or transferor 2. Ascertainment of discharge of purchase consideration 3. Passing opening entries in the books of purchasing company 4. All of the above Ans: -4 Q6. Purchase Consideration is 1. Assets+ Liabilities 2. Assets- Liabilities 3. Assets taken over- liabilities taken over 4. None of the above 5. All of the above Ans: -3 Q7. Which of the following is/are methods of Internal reconstruction? 1. Reduction of share capital 2. Variation of shareholder’s rights 3. Alteration of share capital 4. All of the above Ans: -4

Q8. “Legal Provisions relating to Internal reconstruction” are given in which section? 1. 90 to 100 2. 100 to 105 3. 90 to 95 4. 95 to 105 Ans: -2 Q9. Amount of share capital of the transferor company should be adjusted in ……….. 1. Assets 2. Liabilities 3. Reserves 4. Profit and Loss Account Ans: -3 Q10. What is meant by Absorption? 1. A company’s financial statement 2. A company which takes over the business of one or more existing companies carrying similar businesses 3. A purchasing company 4. All of the above Ans: -2 Q11. Which of the following is/are the types of alternatives of reconstruction? 1. Internal reconstruction 2. External reconstruction 3. None of the above 4. All of the above Ans: -4 Q12. Which of the following is/are the features of Absorption?

1. The nature of business of both of companies is similar 2. No new company is formed 3. One or more companies are liquidated 4. All of the above Ans: -4 Q13. Amalgamation of companies involves liquidation of 1. Two or more companies 2. Only profit transfer 3. Only one company 4. Only loss transfer Ans: -1 Q14. External reconstruction involves liquidation of 1. Two or more companies 2. Only one company 3. Only loss transfer 4. All of the above Ans: -2 Q15. Which of the following statement is correct regarding Lump Sum method ? 1. It involves calculation regarding purchase consideration 2. It is a type of Financial Statement 3. Purchase consideration amount is mentioned in the problem itself 4. None of the above Ans: -3 Q16. Absorption of companies does not include 1. Closing of old company 2. Formation of a new company 3. Formation of two or more companies

4. All of the above Ans: -2 Q17. What is the meaning by Transferee company? 1. A company into which a transferor company is amalgamated 2. Amalgamation into another company 3. Depreciation of value of one company 4. All of the above Ans: -1 Q18. Amalgamation falls into how many broad categories 1. One 2. Three 3. Two 4. Four Ans: -3 Q19. What is reserve? 1. The portion of earnings, receipts or surplus of a company 2. Portion of earning of the amalgamated company 3. None of the above 4. All of the above Ans: -1 Q20. Which of the following is/are methods of accounting for Amalgamation? 1. The purchase method 2. The pooling of interest methods 3. All of the above 4. None of the above Ans: -3 Q21. How many methods are there of Amalgamation?

1. One 2. Two 3. Three 4. Four Ans: -2 Q22. Reconstructing is a term of 1. Reconstruction 2. Amalgamation 3. Corporate Management 4. Absorption Ans: -3 Q23. What are the alternate reasons for reconstructing? 1. Structure 2. Demerger 3. None of the above 4. All of the above Ans: -4 Q24. Corporate Management is the term for the act of reorganizing the legal………… 1. Operations 2. Structure 3. Ownership 4. All of the above Ans: -4 Q25. AS 14 deals with 1. Construction Contract 2. Amalgamation 3. Reconstruction 4. All of the above Ans: -2

Q26. Restructuring is also describe as 1. Debt restructuring 2. Financial restructuring 3. Corporate restructuring 4. None of the above 5. All of the above Ans: -5 Q27. The pooling of Interests method prepares Transferee company’s 1. Reserves 2. Assets and Liabilities 3. Financial Statement of the firm 4. All of the above Ans: -4 Q28. Which of the following is/are the conditions for Amalgamation? 1. Assets and Liabilities transfer after amalgamation 2. No adjustment is intended to be made of book value 3. All of the above 4. None of the above Ans: -3 Q29. First category of Amalgamation defines the 1. Profit of the company 2. Assets of the company 3. Cash of the company 4. Assets and Liabilities of the Amalgamated Company Ans: -4 Q30. Second category of Amalgamation defines the 1. Assets of the company 2. Shareholders Interest

3. Liabilities of the company 4. None of the above Ans: -2

Sheetal Tendulkar 2010002 Mcom 1st Year Sem II...