1. Rebate under section 87A is available to
A HUF's
B Companies
C Resident individuals
D NRI's
E None of the above
Correct Answer C
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2. The alternate tax regime is
A Mandatory
B Availed by senior citizens only
C Optional for individuals and HUF
D For companies only
E None of the above
Correct Answer C
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3. Income tax levied by the government is referred as
A Indirect tax
B Capital tax
C Property tax
D Direct tax
E None of the above
Correct Answer D
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4. A loan taken for a fixed period with a fixed interest rate is known as:
A Overdraft
B Cash credit
C Term loan
D Bill discounting
E None of the above
Correct Answer C
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5. Interest on loans is shown in the profit and loss account under:
A Administrative expenses
B Selling expenses
C Other income
D Finance costs
E None of the above
Correct Answer D
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6. The right of a lender to take possession of the asset if the borrower fails to repay is called:
A Guarantee
B Foreclosure
C Hypothecation
D Lien
E None of the above
Correct Answer B
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7. The portion of the issued capital that has been subscribed and fully paid is known as:
A Authorized Capital
B Subscribed Capital
C Paid-up Capital
D Reserve Capital
E None of the above
Correct Answer C
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8. Profit on reissue of forfeited shares is transferred to:
A General Reserve
B Capital Reserve
C Share Forfeiture Account
D Securities Premium
E None of the above
Correct Answer B
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9. Share application money received in excess is:
A Forfeited
B Treated as income
C Refunded or adjusted
D Credited to capital reserve
E None of the above
Correct Answer C
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10. The Debt Equity Ratio is calculated as:
A Equity / Debt
B Total liabilities/ equity
C Debt/Equity
D Total assets/Debt
E None of the above
Correct Answer C
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11. Which is not a common benchmark in financial ratio analysis?
A Past performance
B Competitor ratios
C Industry averages
D Stock price trends
E None of the above
Correct Answer D
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12. Which of the following is not a measure of profitability?
A Net profit margin
B Return on equity
C Gross profit margin
D Current ratio
None of the above E
Correct Answer D
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13. A low quick ratio with a high current ratio suggests:
A Excessive receivables
B High inventory levels
C Strong liquidity
D Weak profit margins
E None of the above
Correct Answer B
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14. Capital expenditures appear in which part of the cash flow statement?
A Operating activities
B Financing activities
C Investing activities
D Notes to financial statements
E None of the above
Correct Answer C
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15. While performing trend analysis, which of the following is typically used as the base year?
A The year with the highest revenue
B The most recent financial year
C The year that represents normal business conditions
D The first year in the period under analysis
E None of the above
Correct Answer D
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16. What is the cost price of an article which is sold at a loss of 20% for Rs. 160?
A Rs.200
B Rs.220
C Rs.180
D Rs.170
E None of the above
Correct Answer A
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