Commerce GK MCQ | Important for Bank Exams

1) According to Balance Sheet equation concept, the capital will be
A) Capital= Liabilities - Assets
B) Capital= Fixed Assets - Current Assets
C) Capital = Assets - Liabilities
D) Capital = Assets + Liabilities

ANS-C

2) In common size Balance Sheet analysis we evaluate
A) Increase or decrease over two years is analyzed
B) Only increase over two years is analyzed
C) Only decrease over two years is analyzed
D) All assets and liabilities are expressed in terms of percentage of total

ANS-D

3) Increase in fixed assets due to purchase is
A) Source of fund
B) Fund from operation
C) Use of fund
D) None of these

ANS-C

4) In fund flow statement fund means
A) Total resources
B) Cash/ Bank balance
C) Current Assets
D) Working Capital

ANS-D

5) A vacancy caused by the resignation of the auditor is filled only by the
A) Board of directors of the company
B) Central Government
C) General meeting of the shareholders
D) Managing director of the company

ANS-C

6) The first auditor of a company appointed , holds office for
A) A period of 1 year
B) the period till new auditor is appointed
C) Conclusion of first Annual General Meeting
D) Holding of statutory meeting of the company

ANS-C

7) Internal auditor is appointed by the
A) Management
B) Shareholders
C) Government
D) Statutory auditors

ANS-A

8) What is the quorum of General meetings in case of private companies?
A) 2 members
B) 3 members
C) 4 members
D) 5 members

ANS-A

9) Which of the following must hold a statutory meeting?
A) Public Limited Company
B) Private Company
C) Unlimited company
D) All of these

ANS-A

10) Life insurance is a contract of which one of the following
A) Indemnity
B) Guarantee
C) Contribution
D) Subrogation

ANS-B

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Commerce Imporatant MCQ Test

Commerce Imporatant MCQ Test 

1. For what type of Company, high geared capital structure is created?
A) a company which is newly setup and making moderate profit
B) A company which is making loss
C) a company which is matured one and making huge profits
D) None of these


2. In hierarchical nature of planning, which of the following is the correct hierarchy?
A) Objectives-Policies-Strategies-Programmes
B) Objectives-Strategies-Programs-Policies
C) Policies-Programmes-Objectives-Strategies


3. In accordance with GAAP, which of the following methods of amortization is normally recommended for intangible assets?
A) Straight line
B) Units of production
C) Both options A and B
D) None of these


4. In which of the following companies, an auditor is not required to check the sale of shares, debentures or other securities which have been sold at a price less than their cost?
A) Banking company
B) Manufacturing company
C) Service oriented company
D) Non Banking Financial Company

5. The audit of executive action and plans bearing on the finance and expenditure of a company, is known as
A) Performance audit
B) Propriety audit
C) Operational audit
D) None of these


6. Capital reduction account is prepared in the case of
A) External reconstruction of a company
B) Internal reconstruction of a company
C) Amalgamation of two companies
D) Both options B and C


7. Who issues the small exporters policy?
A) ECGC
B) FICCI
C) RBI
D) Ministry of Commerce and Industry

8. At the time of dissolution of a partnership firm, an unrecorded liability is taken over by a partner. What will be the journal entry of this action?
A) Realisation A/c debit; Liability A/c credit
B) Liability A/c debit; Realisation A/c credit
C) Liability A/c debit; Partner's capital A/c credit
D) Realisation A/c debit; Partner's capital A/c credit

9. Which of the following item doesn't appear under the head "Miscellaneous expenditure" ?
A) Preliminary expenses
B) Day to day miscellaneous administrative expenses
C) Discount on issues of shares and debentures
D) None if these

10. Match List I with List II and select the correct answer by using the codes given below :
List I (Type of Assets)
A. Lease
B. Freehold building
C. Livestock
D. Quarries
List II (Method of Depreciation)
1. Depletion method
2. Revaluation method
3. Fixed Installment method
4. Fixed method

A) A4-B3-C2-D1
B) A1-B2-C4-D3
C) A1-B3-C2-D4
D) None of these

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