GK-Financial MCQ Question and Answer

GK-Financial MCQ Question and Answer
61. Current Ratio is 3•75, Acid Test Ratio is 1•25 Stock Rs. 3,75,000, calculate working capital.
  • Rs. 3,00,000
  • Rs. 4,00,000
  • Rs. 4,12,500
  • Rs. 4,25,000
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62. From the information given below, calculate Debt service coverage Ratio—
Net profit after interest and Tax Rs. 40,000, Depreciation Rs. 5,000, Rate of Income Tax 50%, 10% Mortgage Debentures Rs.
60,000. Fixed Interest Charges Rs. 6,000, Debenture Redemption Fund Appropriation of Outstanding Debentures 10%.
  • 4•06 times
  • 5•06 times
  • 6•06 times
  • 7•06 times
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63. Share premium account can be used for—
  • Paying tax liability
  • Meeting the cost of issue of shares or debentures
  • Paying Dividend on shares
  • Meeting the loss on sale of old asset
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64. Ploughing-back of profits means—
  • Dividend declared but not claimed by shareholders
  • Non-declaration of dividend in any year
  • Profits earned from illegal sources and employed in business
  • Retaining the earnings of business for future expansion programme
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65. As per Schedule VI of the Companies’ Act, 1956, Forfeited Share Account will be—
  • Added to paid up capital
  • Deducted from called up capital
  • Added to capital reserve
  • Shown as a revenue reserve
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66. A company invited application for subscription of 5,000 shares. The application were received for 6,000 shares. The shares were allotted on pro-rata basis. If X has applied for 180 shares how many shares would be allotted to him ?
  • 180 shares
  • 200 shares
  • 150 shares
  • 175 shares
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67. Consider the following information pertaining to K Ltd. on September 4, 2005, the company issued 12,000 7% debentures
having a face value of Rs. 100 each at a discount of 2•5%. On September 12, the company issued 25,000 preference shares of
Rs. 100 each. On September 29, the company redeemed 30,000 preference shares of Rs. 100 each at a premium of 5% together with one month dividend @ 6% p.a. thereon. Bank balance on August 31, 2005 was Rs. 30,00,000. After effecting the above

transaction, the Bank Balance as on September 30, 2005 will be—
  • Rs. 35,15,000
  • Rs. 33,80,000
  • Rs. 33,45,000
  • Rs. 35,05,000
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68. The balance appearing in the books of a company at the end of year were CRR A/c Rs. 50,000, Security Premium Rs. 5,000, Revaluation Reserve Rs. 20,000, P & L A/c (Dr) Rs. 10,000. Maximum amount available for distribution of Bonus Share will be—
  • Rs. 50,000
  • Rs. 55,000
  • Rs. 45,000
  • Rs. 57,000
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69. R. G. Ltd. purchased machinery from K.G. Company for a book value of Rs. 4,00,000. The consideration was paid by issue of 10%. Debenture of Rs. 100 each at a discount of 20%. The debenture account will be credited by—
  • Rs. 4,00,000
  • Rs. 5,00,000
  • Rs. 3,20,000
  • Rs. 4,80,000
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70. Depletion method of depreciation is used in case of—
  • Cattle, Loose Tools, etc.
  • Mines, Quarries, etc.
  • Machinery, Building, etc.
  • Books
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