Commerce MCQ Question and Answer
Commerce MCQ Question and Answer
81. What does management audit imply ?
- Complete audit
- Detailed audit
- Efficiency audit
- Interim audit
82. Which one of the following statements is correct ?
- Internal audit and Management audit are the same
- Internal audit and statutory audit are the same
- Internal audit is compulsory in all cases
- Statutory audit of company accounts is compulsory
83. Where does an auditor of a cooperative society submit the audit report ?
- To the managing committee of the society only
- To the Registrar of Cooperative Societies of the State concerned only
- To the State Assembly concerned
- To the Registrar of Cooperative Societies of the State concerned and a copy to the society
84. Which one of the following statements is correct ?
- Audit of an educational institution is compulsory if it is run by a charitable trust
- A club is treated as a commercial establishment
- The accounts of a charitable trust can be audited by any person who belongs to accountancy profession
- Audit of a charitable trust is not compulsory under law
85. Consider the following statements—
The vouching of remuneration to directors involve the checking of
1. special resolution.
2. statement of accounts.
3. approval note of the Central Government.
4. Minutes Book.
Which of the statements given above are correct ?
The vouching of remuneration to directors involve the checking of
1. special resolution.
2. statement of accounts.
3. approval note of the Central Government.
4. Minutes Book.
Which of the statements given above are correct ?
- 1 and 2 only
- 2 and 3 only
- 1, 2 and 4
- 1, 3 and 4
86. Match List-I with List-II and select the correct answer using the code given below the Lists—
List-I (Liability of Auditor) (a) Liability for negligence (b) Liability for misfeasance (c) Criminal liability Liability to third party
List-II (Example)
1. Breach of trust or duty
2. Untrue statement in the prospectus
3. Not liable for untrue statement in prospectus
4. Dividends paid out of capital
Codes :
(a) (b) (c) (d)
List-I (Liability of Auditor) (a) Liability for negligence (b) Liability for misfeasance (c) Criminal liability Liability to third party
List-II (Example)
1. Breach of trust or duty
2. Untrue statement in the prospectus
3. Not liable for untrue statement in prospectus
4. Dividends paid out of capital
Codes :
(a) (b) (c) (d)
- 4 3 2 1
- 2 1 4 3
- 4 1 2 3
- 2 3 4 1
87. Consider the following statements—
1. Corporate governance requires the appointment of audit committees by public
limited companies.
2. The members of an audit committee should be those non-executive directors who do not represent the controlling group.
3. The independence of the statutory auditors is likely to be affected if he deals directly with the audit committee.
Which of the statements given above are correct ?
1. Corporate governance requires the appointment of audit committees by public
limited companies.
2. The members of an audit committee should be those non-executive directors who do not represent the controlling group.
3. The independence of the statutory auditors is likely to be affected if he deals directly with the audit committee.
Which of the statements given above are correct ?
- 1 and 2 only
- 2 and 3 only
- 1 and 3 only
- 1, 2 and 3
88. Under the head ‘Secured Loans’ the following are disclosed—
1. Loans and Advances from banks.
2. Debentures.
3. Loans and Advances from subsidiaries.
4. Other loans and advances.
What is the correct chronological order of disclosure of the items given above in balance sheet of a company ?
1. Loans and Advances from banks.
2. Debentures.
3. Loans and Advances from subsidiaries.
4. Other loans and advances.
What is the correct chronological order of disclosure of the items given above in balance sheet of a company ?
- 3 - 1 - 2 - 4
- 2 - 4 - 3 - 1
- 3 - 4 - 2 - 1
- 2 - 1 - 3 - 4
89. Consider the following statements—
Accounting control comprises
1. The plan of organization concerned with decision process.
2. The plan of organization concerned with safeguarding of assets.
3. The procedure concerned with safeguarding of assets.
Which of the statements given above are correct ?
Accounting control comprises
1. The plan of organization concerned with decision process.
2. The plan of organization concerned with safeguarding of assets.
3. The procedure concerned with safeguarding of assets.
Which of the statements given above are correct ?
- 1 and 2 only
- 2 and 3 only
- 1 and 3 only
- 1, 2 and 3
90. Which of the following statements is/are correct ?
1. Internal control includes quality control.
2. Internal control is compulsory for all forms of business organizations.
3. Internal control helps external auditor to design suitable audit programme for client's organization.
Select the correct answer using the code given below—
1. Internal control includes quality control.
2. Internal control is compulsory for all forms of business organizations.
3. Internal control helps external auditor to design suitable audit programme for client's organization.
Select the correct answer using the code given below—
- 1 only
- 2 only
- 3 only
- 1 and 3