Interview Questions and Answers for Commerce Freshers
1. The Companies Act 1956 require the annual accounts to show a ‘true and fair
view’ of the financial position of the company instead of ‘true and correct
view’ because–
(A) too much of dependence on arithmetical accuracy may lead to window dressing
(B) annual accounts should not only be made correctly but should also convey an overall fair view without any misleading impression
(C) all financial transactions cannot be correctly expressed in terms of money
(D) most of the stake holders do not have reasonable idea about accounting rules and regulations
See Answer:
2. Which one of the following pairs is not correctly matched ?
(A) Internal check– Staff of the concern
(B) Internal Audit– Chartered Accountant
(C) Cost Audit– Cost Account or Chartered Accountant
(D) Propriety Audit– Comptroller and Auditor General of India
See Answer:
3. The accounts of a company shall be audited by the company auditor, or by a person qualified to be appointed as auditor, if the company has to–
(A) wind up (B) amalgamate
(C) finalise branch office accounts (D) declare interim dividend
See Answer:
4. Which one of the following is NOT included under the rights and powers of an Auditor in the Companies Act 1956 ?
(A) Right of access to books of Accounts
(B) Right to call for a General Meeting
(C) Right to receive notice of and attend the General Meeting
(D) Right to make statement at the General Meeting
See Answer:
5. The most suitable form of business organisation for the people of weaker section is–
(A) partnership firm (B) co-operative society
(C) sole-trading business (D) joint stock company
See Answer:
6. The national re-insurer in India is–
(A) General Insurance Corporation of India
(B) United India Insurance Company Ltd.
(C) Insurance Regulatory and Development Authority
(D) Oriental Fire and General Insurance Company Ltd.
See Answer:
7. In life insurance, the risk insured is–
(A) certain to occur and also the timing of its occurrence is known
(B) certain to occur, but its timing of occurrence is not known
(C) not certain to occur and also the timing of its occurrence is not known
(D) not likely to occur
See Answer:
8. Which one of the following risks is not insured by the Export Credit and Guarantee Corporation ?
(A) The risk of non-payment by the foreign buyer
(B) The risk that the importer may return the goods on the ground of lower quality
(C) The political risk that the import licence may be revoked
(D) The risk of war, revolution, etc., in the buyer’s country
See Answer:
9. Social responsibility of business assumes considerable importance towards–
(A) owners and workers (B) consumers and community
(C) government and nation (D) All the above
See Answer:
10. Which one of the following is not a useful tool in decision-making ?
(A) Annual return (B) Linear programming
(C) Sales forecasts (D) Operation research
See Answer:
11. Power to use official seal of a company outside India is to be authorised by–
(A) Articles of Association (B) Memorandum of Association
(C) Both Memorandum and Articles of Association (D) Central Government
See Answer:
12. The approval of which one of the following authorities is required to shift registered office of the company from the jurisdiction of one Registrar of Companies to another Registrar of Companies within a State ?
(A) Company Law Board (B) Central Government
(C) Regional Director (D) Registrar of Companies
See Answer:
13. ‘Body corporate’ under the Companies Act, 1956 includes–
(A) co-operative society
(B) company incorporated outside India
(C) corporation sole
(D) any other body corporate, not being a company, which the Central Government may specify
See Answer:
14. Which one of the following is the correct statement ?
(A) One can be a shareholder without voting right
(B) A preference shareholder can excercise voting right from the date of allotment
(C) An equity shareholder has no voting right
(D) A debentureholder can vote at annual general meeting
See Answer:
15. A person shall not be appointed as Director if he is found to be of unsound mind by–
(A) the company
(B) the company court
(C) a court of competent jurisdiction and the finding is in force
(D) the shareholders
See Answer:
16. Preliminary expenses are an example of–
(A) Revenue expenditure (B) Capital expenditure
(C) Deferred revenue expenditure (D) All of these.
See Answer:
17. Accounting Statement AS-2 provides that inventories should be valued at–
(A) lower of historical cost and net realisable value
(B) lower of historical cost and market value
(C) only estimated selling price
(D) All of these
See Answer:
18. While making an adjustment entry respect of interest on capital, credit is made to–
(A) Capital Account (B) Interest on Capital Account
(C) Profit & Loss Account (D) Interest Account
See Answer:
19. In which of the following ways Secretary of a company can be removed from his office ?
(A) By a resolution passed in the meeting of the Board of Directors
(B) By an order of the Registrar of Company
(C) By a resolution passed in the Annual General Meeting
(D) None of these.
See Answer:
20. Continuous audit is used–
(A) Where volume of the transactions is not very large
(B) Where it is desired to present the accounts just after the close of the financial year and where the statement of accounts is to be presented to the management after every month or quarter
(C) Where satisfactory system of internal check is not in operation
(D) Where interim audit is not in operation
See Answer:
(A) too much of dependence on arithmetical accuracy may lead to window dressing
(B) annual accounts should not only be made correctly but should also convey an overall fair view without any misleading impression
(C) all financial transactions cannot be correctly expressed in terms of money
(D) most of the stake holders do not have reasonable idea about accounting rules and regulations
See Answer:
2. Which one of the following pairs is not correctly matched ?
(A) Internal check– Staff of the concern
(B) Internal Audit– Chartered Accountant
(C) Cost Audit– Cost Account or Chartered Accountant
(D) Propriety Audit– Comptroller and Auditor General of India
See Answer:
3. The accounts of a company shall be audited by the company auditor, or by a person qualified to be appointed as auditor, if the company has to–
(A) wind up (B) amalgamate
(C) finalise branch office accounts (D) declare interim dividend
See Answer:
4. Which one of the following is NOT included under the rights and powers of an Auditor in the Companies Act 1956 ?
(A) Right of access to books of Accounts
(B) Right to call for a General Meeting
(C) Right to receive notice of and attend the General Meeting
(D) Right to make statement at the General Meeting
See Answer:
5. The most suitable form of business organisation for the people of weaker section is–
(A) partnership firm (B) co-operative society
(C) sole-trading business (D) joint stock company
See Answer:
6. The national re-insurer in India is–
(A) General Insurance Corporation of India
(B) United India Insurance Company Ltd.
(C) Insurance Regulatory and Development Authority
(D) Oriental Fire and General Insurance Company Ltd.
See Answer:
7. In life insurance, the risk insured is–
(A) certain to occur and also the timing of its occurrence is known
(B) certain to occur, but its timing of occurrence is not known
(C) not certain to occur and also the timing of its occurrence is not known
(D) not likely to occur
See Answer:
8. Which one of the following risks is not insured by the Export Credit and Guarantee Corporation ?
(A) The risk of non-payment by the foreign buyer
(B) The risk that the importer may return the goods on the ground of lower quality
(C) The political risk that the import licence may be revoked
(D) The risk of war, revolution, etc., in the buyer’s country
See Answer:
9. Social responsibility of business assumes considerable importance towards–
(A) owners and workers (B) consumers and community
(C) government and nation (D) All the above
See Answer:
10. Which one of the following is not a useful tool in decision-making ?
(A) Annual return (B) Linear programming
(C) Sales forecasts (D) Operation research
See Answer:
11. Power to use official seal of a company outside India is to be authorised by–
(A) Articles of Association (B) Memorandum of Association
(C) Both Memorandum and Articles of Association (D) Central Government
See Answer:
12. The approval of which one of the following authorities is required to shift registered office of the company from the jurisdiction of one Registrar of Companies to another Registrar of Companies within a State ?
(A) Company Law Board (B) Central Government
(C) Regional Director (D) Registrar of Companies
See Answer:
13. ‘Body corporate’ under the Companies Act, 1956 includes–
(A) co-operative society
(B) company incorporated outside India
(C) corporation sole
(D) any other body corporate, not being a company, which the Central Government may specify
See Answer:
14. Which one of the following is the correct statement ?
(A) One can be a shareholder without voting right
(B) A preference shareholder can excercise voting right from the date of allotment
(C) An equity shareholder has no voting right
(D) A debentureholder can vote at annual general meeting
See Answer:
15. A person shall not be appointed as Director if he is found to be of unsound mind by–
(A) the company
(B) the company court
(C) a court of competent jurisdiction and the finding is in force
(D) the shareholders
See Answer:
16. Preliminary expenses are an example of–
(A) Revenue expenditure (B) Capital expenditure
(C) Deferred revenue expenditure (D) All of these.
See Answer:
17. Accounting Statement AS-2 provides that inventories should be valued at–
(A) lower of historical cost and net realisable value
(B) lower of historical cost and market value
(C) only estimated selling price
(D) All of these
See Answer:
18. While making an adjustment entry respect of interest on capital, credit is made to–
(A) Capital Account (B) Interest on Capital Account
(C) Profit & Loss Account (D) Interest Account
See Answer:
19. In which of the following ways Secretary of a company can be removed from his office ?
(A) By a resolution passed in the meeting of the Board of Directors
(B) By an order of the Registrar of Company
(C) By a resolution passed in the Annual General Meeting
(D) None of these.
See Answer:
20. Continuous audit is used–
(A) Where volume of the transactions is not very large
(B) Where it is desired to present the accounts just after the close of the financial year and where the statement of accounts is to be presented to the management after every month or quarter
(C) Where satisfactory system of internal check is not in operation
(D) Where interim audit is not in operation
See Answer:
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