Practical Auditing Exam - Questions + Answers

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1. Auditing refers to
a) Preparation and checking of account
b) Examination of accounts of business units only
c) Examination of accounts of professional accountants
d) Checking of vouchers
2. Main object of auditing is
a) Detection of errors
b) To find out whether P&L a/c & B/S show true and fair state affairs
c) Detection of frauds
d) Detection and prevention of frauds and errors.
3. Auditing is luxury for a
a) Joint stock company
b) Partnershipfirm
c) Small shop-keeper
d) Governmentcompany
4. Auditing is compulsory for
a) Small scale business enterprises
b) All partnership firms
c) All joint stock companies
d) Allproprietaryconcerns
5. Propriety audit refers to
a) Verification of accounts
b) Examination accounts of propriety concerns
c) Enquiry against justification and necessity of expresses
d) Audit of Govt. companies
6. Propriety is normally undertaken in case of
a) Joint stock company
b) Governmentcompany
c) Statutory corporation
d) Govt. departments
7. Interim audit refers to
a) Examination of accounts continuously
b) Examination of accounts intermittently
c) Audit work to find out and check interim profits of a company
d) Carrying on audit for bonus purposes at the end of the year
8. Final audit implies
a) Audit of accounts at the end of the year
b) Finally checking of accounts to reveal frauds
c) Audit for submitting report immediately at the end of the year
d) Audit of banking companies
9. A
a) Any trading concern
b) Smallerconcerns
c) Banking companies
d) Anymanufacturingcompanies
10. Joint audit implies
a) Audit of two concerns together
continuous audit is specially needed for
b) Audit of joint stock companies
c) Audit of joint sector companies
d) Audit by two firms of C.A
11. Management audit means
a) Audit undertaken on behalf of the management
b) Evaluating performance of various management processes and functions
c) Audit undertaken on behalf of Govt. to punish management
d) Compulsoryaudit
12. Systems audit implies
a) Systematic examination of accounts
b) Audit undertaken to improve auditing systems
c) Enquiring accounting and control systems
d) Checking the performance of management
13. Internal audit means
a) Audit undertaken to ascertain truth and fairness of state of affairs
b) Audit undertaken internally to evaluate management functions
c) Audit undertaken by employees of the organization to check financial irregularities
d) Audit by independent auditor to improve internal affairs
14. Internal audit is
a) Compulsory for a company with paid-up capital of Rs. 25 lakh and above
b) Voluntary for a company
c) Not necessary for a company
d) Necessary for a company
15. Internal audit is undertaken
a) By independent auditor
b) Statutorily appointed auditor
c) By a person appointed by the management
d) ByGovernmentauditor
16. Internal auditor is appointed by the
a) Management
b) Shareholders
c) Government
d) C & A-G
17. The object of internal check is to
a) Control wastage of resources
b) Prevent errors and frauds
c) Verify the cash receipts and payments
d) Facilitate quick decision by the management
18. Effective internal check system reduces
a) The liability of auditor
b) Work of auditor
c) Both work as well as auditor
d) Responsibilities of an auditor
19. Internal check is a part of
a) Internal audit
b) Internalaccounting
c) External audit
d) Internalcontrol
20. Internal check is carried on by
a) Special staff
b) Internalauditor
c) Accountant

d) None of the above
21. Internal check is suitable for
a) Larger concerns
b) Smallerconcerns
c) Petty shop- keepers
d) None of the above
22. Internal check is carried on by
a) Staff specially appointed for the purpose
b) Internalauditor
c) The members of the staff among themselves
d) Supervisor of the staff
23. Internal check is essential for
a) Petty traders
b) Cash transactions in a large concern
c) A concern using automatic equipments
d) None of the above
24. Misappropriation of goods may be checked by
a) Proper supervision over stock
b) Checking of employees
c) Punishment of employees
d) None of the above
25. Window dressing implies
a) Curtailment of expenses
b) Checking wastages
c) Under- valuation of assets
d) Over- valuation of assets
26. Falsification of accounts is undertaken by a) Auditors
b) Clerks
c) Accountants
d) Responsibleofficials
27. Errors of omission are
a) Technical errors
b) Error of principle
c) Compensating errors
d) None of the above
28. Test checking refers to
a) Testing of accounting records
b) Testing of honesty of employees
c) Intensive checking of a selected number of transactions
d) Checking of all transactions recorded
29. Test checking should not be applied to
a) Sales book
b) Purchasebook
c) Bank reconciliation statement
d) Billsbook
30. Test checking should not be applied to
a) Purchase book
b) Salesbook
c) Stock book
d) Cash book
31. Vouching implies

a) Inspection of receipts
b) Examination of vouchers to check authenticity of records
c) Surprise checking of accounting records
d) Examiningthevariousassets
32. Payment for goods purchased should be vouched with the help of
a) Creditors statement
b) Correspondence with suppliers
c) Cash memos
d) Ledger accounts
33. Payment for wages should be vouched with the help of
a) Piece work statement
b) Wagesheets
c) Minute book
d) Bankpassbook
34. Payment for building purchased should be vouched with the help of
a) Title deed
b) Correspondence with Brokers
c) Building account
d) Cash book
35. Investment should be vouched with the help of
a) Commission book
b) Brokersbook
c) Sales deeds
d) Minutebook
36. Receipt from debtors should be vouched with the help of
a) Counterfoil Receipts cash book
b) Suppliersstatement
c) Sales Deeds
d) GeneralLedger
37. Receipt from sale of investment should be vouched with the help of
a) Brokers Budget Notes
b) Brokers Sold Notes
c) Minute Book
d) Inventory of investment
38. Purchases returns should be vouched with the help of
a) Bought Notes
b) CreditNotes
c) Goods inward Book
d) Cash Book
39. Verification refers to
a) Examination of journal and ledger
b) Examination of vouchers related to assets
c) Examining the physical existence and valuation of assets
d) Calculation of value of assets
40. Object of verification of assets
a) Physical verification of assets
b) Checking value of assets
c) Examining the authority of their acquisition
d) All of the above
41. Which of the following statements is correct?
a) Valuation is a part of verification
b) Verification is a part of valuation

c) Valuation has nothing to do with verification
d) Auditorisavaluer
42. Stock should be valued at
a) Cost
b) Marketprice
c) Cost price or market price whichever is lower
d) Costlessdepreciation
43. Valuation of Fixed Assets is based on the concept
a) Going concern
b) Conservation
c) Money measurement
d) Dualaspect
44. Valuation means
a) Calculating value of assets
b) Checking the value of assets
c) Checking the physical existence of assets
d) Examining the authenticity of assets
45. “ Auditor is not valuer” was stated in
a) Kingston Cotton Mills case
b) London & General Bank case
c) Lee . V . Neuchatel Co. Ltd case
d) London oil Storage Co. case
46. Fixed assets are valued at
a) Cost
b) Marketprice
c) Cost price or market price whichever is less
d) Costlessdepreciation
47. Floating assets are valued at
a) Cost
b) Marketprice
c) Cost price or market price whichever is less
d) Costlessdepreciation
48. The scope of work of internal audit is decided by the
a) Share holders
b) Management
c) To improve financial control
d) All of the above
49. Outstanding expenses should be verified with the help of
a) Cash book
b) Balancebook
c) Journal proper
d) None of the above
50. Book debts should be verified with the help of
a) Balance sheet
b) AmountreceivedfromDebtors
c) Debtors schedule
d) Certificatefromthemanagement
51. Investments in hand should be verified with the help of
a) Schedule of investments
b) Balancesheet
c) Inspection of securities
d) Certificatefromthebank

52. First auditor of a company is appointed by the
a) Shareholders
b) CentralGovt.
c) Company Law Board
d) Board of Directors
53. Which of the following persons is qualified to be a company auditor?
a) An employee of the company
b) Abodycorporate
c) A person who is indebted to the company for an amount exceeding Rs. 1000
d) A practicing chartered accountant
54. The first auditor of a company will hold office
a) For a period of one year
b) Till holding of statutory meeting
c) Till the conclusion of first annual general meeting
d) Till a new auditor is appointed
55. Normally, a company auditor is appointed by the
a) Central Government
b) Shareholders
c) Board of Directors
d) CompanyLawboard
56. An a)
b) c) d)
auditor in a casual vacancy is appointed by the Board of Directors
Shareholders
Central Government
CompanyLawboard
an auditor is not appointed at annual general meeting, he is appointed by the
57. If
a) The Central Government
b) Board of Directors
c) Shareholders
d) CompanyLawboard
58. A
a) Board of Directors
b) At the general meeting of shareholders
c) By the Central Government
d) BytheCompanyLawboard
vacancy caused by resignation of the auditor is filled by
59. A
a) Shareholders
b) Board of Directors
c) Central Government
d) C &A- G
special auditor is appointed by the
60. A
a) C &A– G
government Co. auditor may be appointed by the
b) Shareholders
c) Central Government
d) None of the above
61. A
a) Shareholders
b) Board of Directors
c) Central Government
d) StateGovernment
company auditor can be removed before expiry of his term by
62. Remuneration of a company auditor is fixed by the a) Shareholders

63. A a) b) c) d)
company auditor, in general has to submit his report to Shareholders
Board of Directors
Central Government
C &A– G
b) Board of Directors
c) Central Government
d) Appointingauthority
auditor of Government company has to submit his report to the
64. An
a) Shareholders
b) CentralGovernment
c) C &A– G
d) Ministryconcerned
65. Internal auditor has to submit report to
a) Shareholders
b) Government
c) Company Law board
d) None of the above
66. Auditor should be dutiful like a
a) A watch dog
b) Abloodhound
c) A detective
d) An insurer
67. Auditor, in general is an
a) Employee of the company
b) Agent of the company
c) Agent of the shareholders
d) None of the above
68. While checking allotment of shares the auditor should see that it is made within
a) 100 days of issue of prospectus
b) 120 days of issue of prospectus
c) 150 days of issue of prospectus
d) 80 days of issue of prospectus
69. Which of the following percentage of nominal amount of shares should be received with application
a) 10 b) 15 c) 5 d) 6
70. While checking allotment, auditor should see that amount
a) Equal to estimated fixed capital is received
b) Equal to estimated working capital is received
c) Necessary for purchase of land & building has been received
d) None of the above
71. For restriction regarding allotment of shares, the auditor should refer to section
a) 25 b) 75 c) 64 d) 69
72. For checking that allotment of shares has been properly made, an auditor should refer to
a) Cash Book
b) SharesLedger
c) Directors minutes book
d) ShareholdersminutesBook
73. Auditor should see that the return of allotment has been sent to Registrar within a) 1 month b) 2 months c) 3 months d) 40 days
74. Application money should not be withdrawn unless
a) Allotment is made
b) Cash book has been prepared

c) Certificate to commence business obtained
d) Certificate of incorporation obtained
75. Shares issued for consideration other than cash should be vouched with the help of
a) Directors minutes book
b) Shareholdersminutesbook
c) Contract with the party concerned
d) Cash book
76. A
a) Memorandum of association
b) Articles of association
c) Companies Act, 1956
d) None of the above
company can issue Redeemable Preference shares, if authorized by
77. Auditor should see that amount received for premium on issue of shares should be shown in
a) Subscribed capital
b) CapitalReserveAccount
c) Share Premium account
d) Paid- up capital account
78. Share premium account should be shown in the Balance sheet under
a) Paid-up capital
b) Subscribedcapital
c) Reserves & surplus
d) Reservedcapital
79. Amount of share premium may be utilized for
a) Payment of dividend
b) Writing of preliminary expenses
c) Routine expenses
d) Purchase of fixed assets
80. Shares can be issued at discount under section
a) 76 b) 75 c)79 d)89
81. Interest on calls paid in advance, according to Table A, should not exceed
a) 6% b) 5% c)10% d)14%
82. Shares can be issued at premium, under section
a) 76 b) 75 c)78 d)79
83. A company can accept calls in advance from its shareholders under section
a) 82 b) 79 c)92 d)78
84. Shares can be issued at discount only after
a) 2 years of the commencement of the business
b) 1 year of the commencement of the business
c) 3 years of the commencement of the business
d) 5 years of the commencement of the business
85. With regard to issue of share warrants to the bearers, the auditor should see that is it
a) Permitted by Memorandum of Association
b) Sanctioned by the Central Government
c) Permitted by the Board of Directors
d) None of the above
86. For the for festure of shares, the auditor should check that it is permitted
a) by Memorandum of Association
b) by articles of association
c) under Companies Act, 1956
d) None of the above
87. Premium received on issue of shares, later forfeited, should be transferred to
a) Capital reserve

b) SharesforfeitedAccount
c) Capital Account
d) None of the above
88. With regard to issue of share certificates, the auditor should refer to section a) 110 b) 113 c) 114 d) 123
89. Increase in share capital is permitted by
a) Memorandum of Association
b) Articles of association
c) Court
d) CompaniesAct,1956
90. Divisible profit should not include
a) Interest on capital
b) Capital
c) Depreciation
d) None of the above
91. Dividend can not be paid out of
a) Capital profit
b) Capitalreceipts
c) Revenue receipts
d) None of the above
92. Capital profit imply profit earned
a) Through business transaction
b) Fromcapital
c) From sale of fixed assets
d) From sale of current assets
93. Capital profits
a) Can be paid by way of dividends
b) Cannot paid by way of dividends
c) Can be paid by way of dividend under certain conditions
d) None of the above
94. If
a) Not allow payment of dividend
b) Allow payment of dividends
c) Allow payment of dividends after making such losses good
d) None of the above
there is capital loss, the auditor should
95. A
a) After charging depreciation
b) Without charging depreciation
c) Out of capital
d) None of the above
company auditor should see that the dividend should be paid
96. In
a) Judgment
his report, the auditor gives his
b) Opinion
c) Guarantee to correctness of accounts
d) True state of affairs
97. Civil liability of an auditor implies liability for
a) Misappropriation of cash
b) Misappropriation of goods
c) Fraud
d) Misfeasance
98. An
a) Negligence
auditor can be held liable under companies Act 1949 for

b) Criminaloffence
c) Professional misconduct d) Breach of contract
99. Investigation of books of accounts and records is :
100.
101.
a. b. c. d.
a. b. c. d.
a. b. c. d.
Not legally compulsory Compulsory
Compulsory as per companies act Compulsory as Income Tax Act Investigation is carries on behalf of Manager
Employee
Client
On behalf of owner and third parties
Examination of accounting records undertaken for a special purpose is called Auditing
Internal check
Investigation
Internal control
The prime importance of investigation on behalf of an individual or firm intending to
102.
purchase an existing business is to
a. b. c. d.
103.
a.
b. c. d.
104.
a.
b. c. d.
105.
a.
b. c. d.
106.
a.
b. c. d.
107.
a.
b. c. d.
108.
a.
b.
Ascertain value of asset
Ascertain the earning capacity of the concern Estimation of value of good will
Extend of liabilities
Inflation of closing stock results is :-
Inflation of loss
Deflation of loss
Inflation of profit
Deflation of profit
Inflation of profit is possible due to :
Overvaluation of closing stock
Overstating purchase
Overstating opening stock
Overstating expenses
Charging excessive provision for depreciation results in Less profit
More profit
No change in profit
No change in loss
The main purpose of management audit is to
Review the management operations
Check arithmetical accuracy
Prevent travel
Prevent error
Management audit is
Compulsory
Not compulsory
Compulsory under Income Tax Act
Compulsory under Indian Contract Act.
Special resolution means -------------------
1/3 majority
2/3 majority

c. 109.
a. b. c.
110.
a.
b.
c. 111.
a. b. c.
112.
a.
b.
c. 113.
a. b. c.
114.
a.
b.
c. 115.
a. b. c.
116.
a.
b.
c. 117.
a. b. c.
118.
a.
b.
c. 119.
a. b. c.
120.
a.
b.
c. 121.
a. b.
1⁄2 majority
Ordinary resolution means -----------------------
1/3 majority
2/3 majority
More than 1/2
The chartered Accountants Act is in -----------------
1956
1959
1949
Section 633 of the companies Act deals with
Liability of auditor
Relief to the auditor
Punishment to the auditor
Auditor is an --------------- of a shareholder
Owner
Agent
Employer
Cost audit means audit of --------------- records
Financial
Cost
Tax
Financial auditor submits reports to the ----------------
Shareholder
Board of director
Employees
Cost auditor submits reports to the ---------------
Share holder
Board of directors
Employees
--------------- audit is forward looking -
Financial
Cost
Tax
Cost auditor of a company is -----------
Chartered Accountant
Cost Accountant
Tax Accountant
Auditor finds that there is change in the method of valuation of stock whether he should Allow it
Disallow it
Allow it with a note to this effect
Audit under any statute in a country is called ------------------
Final audit
Internal audit
Statutory audit
Books of Accounts are prepared and audited as per the provisions of the --------------- Income Tax Act,1961
Companies Act 1956
Chartered Accountants Act 1949
CAATTS is also known as -----------
Cost And Accounts Treatments
Computer Assisted Audit Tools and Techniques

122.
123.
c.
a. b. c.
a. b. c.
Classification and Accounting of Tax Tools Auditor has got no lien on ------------- Audit Note Nook
Audit working papers
Books to Accounts of Client
Statutory Report should be sent to registrar before ------------------- days of statutory meeting 30 days
14 days
21 days
The meeting held by the company with in a period of not less than one month and not more
124.
than 6 months is called -------------
a. b. c.
125.
a.
b.
c. 126.
goals a. b. c.
127.
a.
b.
c. 128.
a. b. c.
129.
a.
b.
c. 130.
a. b. c.
131.
a.
b.
c. 132.
a. b. c.
133.
a.
b. c.
Statutory
Annual
General
-------------------- audit is not a statuary requirement Management
Financial
Tax Audit
----------------- audit refers to the evaluation of company’s performance against planned
in the areas of social responsibility. Cost audit
Social audit
Management audit
Bonus shares are issued to ---------------- New members
Existing share holders
Employees
-------- Section of the Companies Act deals with Appointment of Company auditor. Sec-226
Sec-224
Sec-227
-------- Section of the Companies Act deals with qualification of Company auditor. Sec-226
Sec-224
Sec-227
Amount of Share premium may be utilized for Payment of dividend
Writing of preliminary expenses
Routine expense
Share Premium Account should be shown in Balance sheet under Paid-up capital
Subscribed capital
Reserves and surpluses
Auditor should see that amount received for premium on issue of shares should be shown in Subscribed capital
Capital Reserve Account
Share Premium Account
A company can issue redeemable preference shares if authorized by Memorandum of Association
Articles of Association
Companies Act-1956

134.
135.
136.
137.
138.
139.
a. b. c.
a. b. c.
a. b. c.
a. b. c.
a. b. c.
a. b. c.
A company can issue bonus shares if authorized by Memorandum of Association
Articles of Association
Companies Act-1956
Interest on calls paid in advance according to table A, should not exceed 6%
5%
10%
140. application
a. b. c.
141.
a.
b. c. d.
142.
a.
b.
c. 143.
a. b. c.
144.
a.
b.
c. 145.
a. b. c.
For the forfeiture of shares, the
Memorandum of Association
By articles of association
Under Companies Act 1956
Profits on reissue of forfeited Shares should be transferred to Share forfeited Account
Capital Reserve Account
Profit and Loss Account
Shares issued for consideration other than cash should be vouched with the help of Director’s minute Book
Shareholder’s minute Book
Contact with the party concerned
While checking the allotment of shares, the auditor should see that it is made within
100 days of issue of prospectus
120 days of issue of prospectus
150 days of issue of prospectus
Which of the following percentage of nominal amount of shares should be received with
10
15
5
Accounting standards are prepared by SEBI
RBI
ICAI
ITA
Which of the following is referred to confirm the allotment of shares to the vendor Cash book
Pass book
Director’s minute
Share premium Account is shown on the _______________
Asset side of Balance sheet
Liability side of Balance sheet
Credit side of profit and loss Account
Issue of shares at discount should be sanctioned by the ________________ Board of directors
Share holders
Company Law Board
The maximum rate of discount on shares shall not exceed________________ 20%
15%
10%
auditor should check that it is permitted

146. Discount on issue of shares not written of is shown separately in Balance sheet under the head_____________
147.
148.
149.
150.
151.
a. b. c.
a. b. c.
a. b. c.
a. b. c.
a. b. c.
a. b. c.
Miscellaneous expenditure
Preliminary expanses
Current assets
__________________section of Companies Act deals with share Capital 69
60
50
Which among the following is not a function of the author
Checking errors and frauds
Vouching with original documents
Preparing final Accounts
Audit conducted as per the provisions of law is _____________
Statutory Audit
Continuous Audit
Social Audit
The scope of auditing does not cover.
Vouching
Checking arithmetical accuracy
Ledger posting
Internal audit is conducted
Periodically
Throughout the year
Once in a year
The amount of application money received shall be deposited in a scheduled bank
Annual general meeting
General meeting
Certificate to commencement obtained
Amount received as premium can be used to ___________
Purchase Assets
Pay of liabilities
Issue bonus shares
The auditors are liable under
Companies Act Only
Income Tax Act Only
All above
The maximum number of audit assignment an auditor can accept is limited to --------------
10
15
20
Auditors can be appointed by -------------- when the shareholders fail to appoint auditors at the meeting
Board of directors
Central government
Company Low board
The examinations of financial transactions with supporting evidences is called Verification
Vouching
152. until________
153.
154.
a. b. c.
a. b. c.
a. b. c.
155. companies
a. b. c.
156. general
a. b. c.
157.
a. b.

158.
159.
160.
161.
162.
c.
a. b. c.
a. b. c.
a. b. c.
a. b. c.
a. b. c.
Auditing
Which among the following is an example of intangible asset?
Goodwill
Patents
All of these
Which of the following is not an item current asset?
Stock
Sundry debtors
Furniture
The term inventories stands for
Raw materials
Work in progress
All of these
Sales day book is used for recording
Credit sales
Cash sales
All sales
--------------- audit is more suitable for small business houses
Continuous
Annual
Partial
Vouching is an examination of ----------- to ascertain the accuracy and authenticity of transactions in
Audit files
Audit note book
Documents
--------------- is a written plan containing details with regard to the conduct of a particular audit Audit Note book
Audit programme
Audit files
--------------- is the verification of books of accounts from Income tax point of view
Cost audit
Tax audit
Management audit
Investigation is conducted
Regularly
Quarterly
As and when required
Investigation is required when
Fraud is suspected in business
On acquisition of running business
All of them
Which among the following is not a right of company auditors
Right to access the book accounts
Right to seek explanations
Right to lies on books of accounts
Test checking is done when there is an effective system of --------------
Internal control
Internal audit
Internal check
Test checking means
163.
the book of accounts
164.
165.
166.
167.
168.
169.
170.
a. b. c.
a. b. c.
a. b. c.
a. b. c.
a. b. c.
a. b. c.
a. b. c.

171.
172.
173.
174.
175.
176.
177.
178.
179.
180.
181.
182.
183.
a. b. c.
a. b. c.
a. b. c.
a. b. c.
a. b. c.
a. b. c.
a. b. c.
a. b. c.
a. b. c.
a. b. c.
a. b. c.
a. b. c.
a. b. c.
Checking of all transactions
Checking of half of the transactions
Checking of selected items
Audit working papers are --------------------------
Important information about audit
Appointment letters regarding audit
Letter of notice
Current audit file consists of
Matters of future importance
Matters relations to post years
Matters relating to the year of audit
------------------- begins where accounting ends
Bookkeeping
Auditing
Internal check
---------------- audit is compulsory for joint stock companies
Statutory
Final
Continuous
Treating revenue expenditure as capital expenditure is an example of error of ------------------- Principle
Compensating
Clerical
Financial statements are prepared by
The accountant
The auditor
Managing director
Preliminary expanses not written off are treated as
Fixed assets
Intangible assets
Fictitious assets
Verification of assets involves a critical examination of
Ownership
Existence
All of these
Finished goods are valued for a balance sheet purpose
At cost price
At market price
At lower of cost or market price
---------------- includes financial and non-financial control
Internal check
Internal control
Internal audit
---------------- is concerned with the allocation of work among employees Internal control
Internal check
Internal audit
The duties of internal auditor is prescribed by Companies act
Company law board
Management
Internal audit is considered as a service to -------------------

184.
185.
186.
187.
188.
189.
190.
191.
192.
a. b. c.
a. b. c.
a. b. c.
a. b. c.
a. b. c.
a. b. c.
a. b. c.
a. b. c.
a. b. c.
a. b. c.
Share holders
Board of directories
Management
Pre-arranging and coordinating the audit work is called ------------------
Audit planning
Vouching
Verification
A fixed audit programme is also called a --------- programme
Tailor made
Man made
Auditor made
Share holders minute book should be vouched for
Payment to vendors
Payment to promoters
Issue of bonus shares
---------------- is deducted from called up capital to get paid up capital
Subscribed capital
Issued capital
Calls in arrears
Discount on issue of shares is shown under the --------------- lead
Current asset
Preliminary expanses
Miscellaneous expanses
To forfeit shares --------------- days notice to the share holder’s given
40
14
24
-------------- of the companies Act 1956 prescribes the duty of preparing a report by an auditor Sec-227(2)
Sec-273(1)
Sec-224(2)
A --------------- report is one which contains the opinion of the auditor subject to certain conditions Unqualified
Qualified
Clean
--------------- is made out of reserves or share premium
Preference shares
Bonus shares
Debentures
---------------- shares cannot be issued if the company makes any default in the payment of its
Preference
Equity
Bonus
Capitalization of reserves means ------------------------- Creation of provision
Declaration of dividend
Issue of bonus shares
Provisions regarding bonus issue should be given in -------------------- document Memorandum of association
Articles of association
193. obligation
a. b. c.
194.
a. b. c.
195.
a. b.

196.
c.
a. b. c.
Prospectus
Balance remaining in the forfeited Account after reissue is transferred to --------------- account General reserve
Capital reserve
Premium account
If reissue of shares are more than face value of shares, the excess amount is transferred to ----------
General reserve
Capital reserve
Premium account
Share call amount due is credited to ------------------ account Share application account
Share allotment account
Share capital account
When excess applications money is refunded to applicants it is vouched with cash book and ------- Letter of allotment
Letter of call
Letter of regreat
Partial auditing is usually done by
Sole trading concern
Joint stock company
Govt. department
197. account.
a. b. c.
198.
a. b. c.
199.
a. b. c.
200.
a. b. c.
1) C 9)C
17) B 25) D 33) B 41) A 49) C
57) A 65) D 73) A 81) A 89) B 97) D 105) A 113)b 121)B 129)A 137)B 145)C 153)C
2) B 10) D 18) B 26) D 34) A 42) C 50) C 58) B 66) A 74) C 82) C
90) D 98) C
106) A
114)a 115)B 122)C
130)B
138)C
146)A
154)C
3) C 11) B 19) D 27) A 35) B 43) A 51) C 59) C 67) C 75) C 83) C 91) B
99) A 107) B
123)C 131)C 139)B 147)A 155)C
ANSWERS
4)C 5)C 6)D7)C8)A
116)B
117)b
119)C
12) 20) 28) 36) 44) 52) 60) 68) 76) 84) 92)
100) 108)
C D C A
B D
A B B B C
13) C
21) A
29) C
37) B
45) A
53) D
61) A
69) C
77) C 78)C 85) B 86)B 93) C 94)B
15) C 23) B 31) B
39) C 47) C 55) B
63) A 71) D 79) B 87) D 95) A 103) C 111)B
120)B 127)B
135)A 143)B 151)B 159)C
16) A 24) A 32) A 40) D 48) D 56) A 64) B 72) C 80) C 88) B 96) B
104)A 112)B
128)B 136)B 144)C 152)C 160)C
124)A 132)C 140)C 148)C 156)B
125)A 133)B
141)C 149)A 157)B
D B
101) C 109)C
118)C
102) B 110)B
126)B 134)B 142)C 150)C 158)C
14) B 22) C 30) D 38) B 46) D 54) C 62) D 70) D

161)A 162)B 169)C 170)C 177)C 178)C 185)A 186)C 193)C 194)C
163)C 164)B 171)A 172)C 179)C 180)B 187)C 188)C 195)B 196)B
165)B 166)C 173)B 174)A 181)B 182)C 189)B 190)A 197)C 198)C
167)C 168)C 175)A 176)A 183)C 184)a 191)B 192)B 199)c 200)a