SERIAL UNIT

NUMBER NUMBER QUESTION TEXT OPTION_1 OPTION_2

1
1 As per the Banking Regulations Act, 1949, a bank can engage in Borrowing anDealing in b
2 Every banking company in India is required to transfer atleast___ 10% 25%
3 A banking company can pay dividend on its shares after writingafter chargi
4 Every non-scheduled bank has to maintain a cash reserve of atleas 1% 2%
5 The General Ledger of a bank contains all personal all personal
6 Rebate on bill discounted is discount recdiscount ea
7 The first item under 'Assets' in the balance sheet of a Bank is Cash and balBalances wi
8 The items under 'Liabilities in the balance sheet of a Bank are s Capital, Res Deposits, C
9 Bills for collection are shown in the balan in the balan
10 The figures in the final accounts of a bank are shown toare shown i
11 Capital is classified under Authorised, Issued, Subscribed, Called nationalized banks
foreign banks
12 Amount of deposit kept with the RBI under Section 11(2)
The items under 'Deposits' in Schedule 3 of the balance sheet of Banknationalizedforeign ban
13 of a Bank are shown in the following order Savings bankDemand depo
The items under 'Reserves and Surplus' in Schedule 2 of the
14 balance sheet of a Bank are shownvin the following order Statutory re Capital res
15 bills payable are ahown in the balance sheet of a bank in the notes in the Sched
16 Balances with RBI are shown in the final accounts of a Bank in Schedule 3 Schedule 4
17 Interest Accrued is shown in the final accounts of a Bank in Schedule 3 Schedule 4
18 Money at Call and Short Notice is shown in the final accounts of Schedule 7 Schedule 6
19 Bills Purchased and Discounted are shown in the balance sheet oin the notes in the Sched
20 Advances in India are classified in the balance sheet of a bank u (i) Due from Bills purch
21 Advances outside India are classified in the balance sheet of a b (i) Due from Bills purch
22 Inter-office
Which of theAdjustments (net) will appear
following statements in the balance sheet o under 'Otherunder 'Othe
are true?
23 Discount on Bills is shown by a bank in Schedule In Schedule
24 (1) Provisions for doubtful advances
Loss on Revaluation of Investments are deducted from the is shown by is shown by
advances to the extent necessary (2) Provisions for doubtful
25 Commission,
advances are Exchange
made on aandnetBrokerage
basis, afteris deducting
shown by Tax
a bank
relief on the face in Schedule
26 available only 1 only 2
27 Contingency funds will appear in the balancin the bala
28 Surplus on revaluation should be treated as Other IncomCapital Res
29 Credit balances in overdrafts are shown by a bank as a?? Borrowings Other Liabil
30 Inoperative current account balances are shown by a bank as Borrowings Term deposi
31 Interest payable on deposits which is accrued but not due is sh Deposits Advances
32 Unclaimed dividend is shown by a bank under Deposits Advances
33 Endorsements are shown by a bank under Deposits Advances
34 Rebate on bill discounted is shown in the Assets side liabilities
35 Employee security deposit is shown by a bank under Deposits Advances
36 Building acquired in satisfaction of a claim is shown by a bank u Fixed assets Current ass
37 Which
Letters of
of the following
credit statements
are shown by a bankis false?Income
under from Deposits Advances
38 nonperforming assets (NPA) is recognised
The heading 'Other Assets' does not include on accrual basis (2) Silver Interest ac
Interest on advances against term deposits may be taken to
39 A banking
income company
account is provided
date, statutorilyadequate
requiredmargin
to transfer___% ofinits
is available 10 25
40 the accounts
Demand drafts, telegraphic transfers, mail transfers and Travell Bills ReceivaBills Payabl
41 Banks should, classify
(3) If Government an account
guaranteed as NPAbecome
advances only if the
NPA,interest
the cha 30 60
42 interest on such advance 2 1
43 A___asset would be one, which has remained NPA for a period lesubstandardstandard
44 Banks should make general provision for standard assets in the f0.25 per cen1 per cent
45 Banks should make general provision for standard assets in the f0.25 per cen1 per cent
46 Banks should make general provision for standard assets in the fo0.25 per cen1 per cent
47 Banks should make general provision for standard assets in the 0.25 per cen1 per cent
48 Banks should make general provision for standard assets at 0.25 per cen1 per cent
49 What percentage of provision is required on performing assets ? 10 40
50 When income
The Balance is to of
Sheet beAlpha
recognized
BankingonCo.
cash basis
has by Safe
doubtful Trust am
advances 100 300
Bank,
For thea year
distinction
endedshould be 2010 non-performing assets
31st March,
51 What will as
classified besub-standard
the amount of in provision
Centura to be shown in Profit and L 200 400
52 made between Banking and Monetary a
53 Bank Ltd. will be classified as doubtful after 24 months 18 months
54 On 1-4-2009 Bills for collection were 10,000. During 2009-2010 b 25,000 30,000
55 Capital Adequacy Ratio is equal to Capital fund Capital fund
56 Tier I Capital includes Undisclosed Revaluation
57 The quantum of Tier II capital is limited to a maximum of 10% 50%
58 The risk adjusted value for any category of assets is equal to the value of the value of the

2
59 In fire insurance business percentage of premium income is carrie 100% 50%
60 Insurance business is controlled by Insurance AcInsurance R
61 In marine insurance business____ percentage of premium income is 100% 50%
As per IRDA Regulations, 2002, Sun Light Insurance Company
62 For the settlement
carrying business ofofmore
claim, insurance
than company
one type of insurance business ascertains t ensures com
63 is required to prepare A separate rA separate p
64 In case of fire insurance, the provision required to make against 40% 50%
65 As per IRDA Regulations, an insurance company is required to p Revenue accProfit and l
66 Insurance commission on general Insurance policies issued duri forty per ce five per ce
67 Insurance commission on general insurance policies renewed duforty per ce five per ce
68 An insurer carrying on General insurance business shall comply Schedule A Schedule B
69 The Audit Report for an insurer carrying on General insurance b Schedule A Schedule B
70 In the event of loss covered by re-insurance, the insured the insured
71 Receipts and Payments Account [Cash Flow statement] of an In need not be need to be
72 Premium shall be recognised as income when receivwhen due
73 Acquisition costs related to the acquisition of new and renewal i shall be expeshall be exp
74 Unrealised gains / losses arising due to changes in the fair value shall be ign shall be de
75 In the Financial Statements of an Insurance Company, Underwr Advances Contingent L
76 Items of expenses and income shall be shown as a separate line Any item is Any item is
77 Reserve deposits with ceding companies is shown in the balanc Current AsseCurrent Liabi
78 Outstanding Premiums is shown in the balance sheet of an Ins Current AsseCurrent Liabi
79 Deposit with Reserve Bank of India u/s 7 of Insurance Act, 1938 Current AsseCash and Ba
80 Deposit held on re-insurance ceded is shown in the balance she Loans Current Liabi
81 Premiums received in advance is shown in the balance sheet of Current AsseCurrent Liabi
82 Unallocated premium is shown in the balance sheet of an Insu Current AsseCurrent Liabi
83 Claims Outstanding is shown in the balance sheet of an Insura Current AsseCurrent Liabi
84 Agents Balances is shown in the balance sheet of an Insurance Current AsseCurrent Liabi
85 Premium deficiency means deficimeans the e
86 Liability for outstanding claims for a general insurance company Future payme Claims Incu
87 Claims made in respect of general insurance contracts shall be reevery year every three
88 Schedule of premiums of a General Insurance Company will showTerm life p Premium for
89 Reserve for Unexpired Risk is shown in the balance sheet of a Reserves andCapital
90 Every insurance company in India is required to close its account31st Decemb30th Septe
91 The number of schedules to accompany the financial statements10 Schedule15 Schedule
92 The commission received from the re-insurer is called Commission Commission
93 The commission paid by the re-insurer is called Commission Commission

3
94 Current Ratio Balance SheeRevenue St
95 Balance sheet ratios may indicate RelationshipRelationship
96 Gross profit ratio Balance SheeRevenue St
97 Liquid ratio Balance SheeRevenue St
98 Revenue statements ratios may study RelationshipRelationshi
99 Proprietory ratio Balance SheeRevenue St
100 Composite ratios shows RelationshipRelationshi
101 Capital gearing ratio Balance SheeRevenue St
102 Operating ratio Balance SheeRevenue St
103 Debt Equity Ratio Balance SheeRevenue St
104 Net operating profit ratio Balance SheeRevenue St
105 Stock-working capital ratio Balance SheeRevenue St
106 Stock turnover ratio Balance SheeRevenue St
107 Expenses ratio Balance SheeRevenue St
108 Net profit ratio Balance SheeRevenue St
109 Return on capital employed Balance SheeRevenue St
110 Return on proprietor's fund Balance SheeRevenue St
111 Return on equity capital ratio Balance SheeRevenue St
112 Debtors turnover ratio Balance SheeRevenue St
113 Creditors turnover ratio Balance SheeRevenue St
114 Dividend payout ratio Balance SheeRevenue St
115 Debt service ratio Balance SheeRevenue St
116 Liquidity ratios Capital geariLiquid ratio
117 Leverage ratios Capital geariLiquid ratio
118 Activity ratios Capital geariLiquid ratio
119 Coverage Ratios Capital geariLiquid ratio
120 Profitability ratios Capital geariLiquid ratio
121 Following profitability ratios are useful for share holders Liquid ratio Return on P
122 Following ratios are useful for short term creditors Current ratioReturn on pr
123 Following ratios are useful for long term creditors Current rati Return on eq
124 Standard current ratio 2:1 1:1
125 Standard liquid ratio 2:1 1:1
126 Standard proprietory ratio 2:1 1:1
127 Standard debt service coverage ratio 2:1 1:1
128 Standard debt-equity ratio 2:1 1:1
129 2:1 Standard curStandard liq
130 1:1 Standard curStandard liq
131 65 % Standard curStandard liq
132 1.33 Standard curStandard liq
133 2:1 Standard debStandard liq
134 A current ratio higher than 2:1 shows Under-tradinUnder-inve
135 A liquid ratio higher than 1:1 shows Under-tradinUnder-inve
136 A current ratio lower than 2:1 shows Under-tradinUnder-inve
137 A liquid ratio lower than 1:1 shows Under-tradinUnder-inve
138 A company has following ratios Current ratioQuick ratio
139 While computing proprietory ratio Proprietor's Proprietor's
140 While computing proprietory ratio, Total assets are taken asequaCapital emp Own Funds +
141 If actual debt-equity ratio is much higher than 2:1, it indicates A very satisf Smaller bur
142 If actual debt-equity ratio is much less than 2:1, it indicates Less dependHigher retur
143 A highly geared company has more equ has funds en
144 The rate ofhas
A concern interest payable Ratio
an Operating by thehigher
company
thanon Pref.
the Shares an If company'sIf company's
industry's
145 standard ratio. This shows optimum leve low efficie
146 A concern has an Operating Profit Ratio higher than the industry'realisation oless sales o
147 A concern has a Net Profit Ratio lower than the industry's standaunusual gainsgreat efficie
148 a concern has a stock turnover of 7.7. times, which of the follow On an averagDuring the y
149 If a concern has a very high stock turnover ratio, which of the fo Stock Velocistock has m
150 If company's current ratio is 2:1 & Liquid ratio is 0.5 :1 company may company may
151 Profit Before Interest and Tax is used for computing Return on Pr company ma
152 Net Profit After Interest is used for computing Return on PrReturn on I
153 High Turnover Ratios indicate under-tradinover-trading
154 A high Debtors Turnover Ratio indicates less chancesmore funds
155 A company's retum on net worth is 14%. If 10% Debentures CapitThe Ratio wiThe Ratio wi
156 A contingent liability has become actual liability required to be prCapital GeariBoth Capital
157 What ratios are applied to find out the efficiency of performanceonly activity only profitab
158 Liquidity ratio indicates the ability of the company to meet its current liabillong-term lia
159 Quick assets is equal to current assecurrent asse
160 Quick liabilities is equal to current liabi currrent lia
161 The bank overdraft is equal to current liabilcurrent liabil
162 What ratio indicates the relationship between shareholders fundproprietary roperating ra
163 The proprietary ratio shows the relation between proprietors fu total assets total assets
164 A high proprietary ratio indicates high risk low risk
165 A high GP ratio indicates. low cost of high cost o
166 Operating ratio shows the relationship between operating pro
cost of good
167 Efficiency of using assets is reflected in terms of the speed with net profit gross profit
168 What is indicated by high stock tumover ratio? quick movemhigh cost of

4
169 which of the following is not a characteristric of company A company isA sharehold
170 which of the following is not a characterisric of of equity share it is the ris it has voti
171 preference share must be redeemed within 10 years form 15 years for
172 which of the following is not a characterstric of a public limited its share arethe number
173 issued capital is the part of subscribed caAuthorised c
174 Reserve capital can be called up in an emergeany time by
175 subscribed capital can be more then camore then i
176 share can be issued by a public company through public offer private pla
177 which of the following is not true for stock ? stock is in l stock can be
178 the minimum application money to be paid by an applicant along20% of the fa20% of the i
179 calls-in-advance is shown in the balance sheet on the asset on the equi
180 call-in-advance is shown in the balance sheet on the liabil on the liab
181 as per table f of schedule I to the Companies Act 2013 interest on.@ 6% p.a .@ 5% p.a
182 at the time of forfuture of shares share capitalshare capita
183 Till the forfeited shares are re-issued balance of forfeited share as a separat as a part of
184 profit on re-issue of share is transferred to profit and logeneral Res
185 shares are issued for cash onlyon credit on
186 A company can issue equity share with differential right as to di if it is autho if the issue
187 the following statement is false equity share preference
188 the unpaid dividend of any year will have to be paid out of the prnon-cumulatiparticipatin
189 the unpaid dividend of any year will lapse in case of non-cumulatiparticipatin
190 participating preference shares are entitled to participate in the fixed divide dividend to
191 the amount of capital stated in the capital clause of the memoraissued capitasubscribed
192 the amount of capital actually offered to the public / shareholderissued capitasubscribed c
193 the following statement is false Issue Capita in the case
194 if minimum subscription is 9000 shares of 10 each and the applicallotment withere will b
195 Issue Capital less undersubscription is equal to authorised casubscribed C
196 ___________ capital can be called up only in case of winding authorised subscribed
197 called up capital less calls-in-arrears is equal to authorised casubscribed C
198 memorandum of association of private company must have mcan have m
199 allotment made to promoters who made an offer to subscribe spe firm allotmepartial allo
200 bulk allotment to an individual companies venture capitalists is firm allotmepreferentia
201 public company issuing shares to public needs to file with Regis prospectus statement i
202 capital redemption reserve can be used can be used
203 balance in debenture redemption fund after the debentures ar can be used can be used
204 extract of balance sheet of M Ltd as on 31-3-2017 liabilities sha 50,000 30,000
205 upon forfeiture of share share capital account is debited by paid up amocalls-in-arr
206 the profit made on reissue of forfeited share is transferred to Capital Rese capital re
207 X Co Ltd forfeited 20 shares of 10 each on which five Persia wer 40 60
208 which types of share may have dividend in arrears cumulative pcommon sh
209 director of a company for fitted 200 equity share of hundred ea 2000 1600
210 X ltd forfeited 30 shares of 10 each fully called up held by kana 90 240
211 ABC Ltd issued thousand shares of hundred each at a premium of 1 4000 500
OPTION_3 OPTION_4
CORRECT OPTION
.

Carrying on All of the ab 4

30% 40% 2`
after chargi before chargi 1
3% 4% 3`
all real and the control a 4
rebate allowdiscount rec 1
InvestmentsAdvances 1
Capital, Res Capital, Res 3
in the balancin the notes 4
are shown i are shown i 3
other than nall banks 3
other than nall banks 2
Term depositDemand depos 2
Statutory re Shares premi 1
in the Schedin the Sched 2
Schedule 5 Schedule 6 4
Schedule 5 Schedule 6 3
on the face
Schedule
of the main 5 Schedule 4 1
in
profit
the and
Schedin the Sched
Syndicated 4
loss
Loans; Others 2
account of
aSyndicated
bank LOthers 1
either underboth under 'O 3
the main in Schedule
in Schedule 2
is
(c)shown
on theby is ignored b 3
profit and in Schedule
in Schedule 3
loss
both neither 1
account of
a bank in the notes 1
Statutory ReRevenue res 2
Demand Depo Balances wit 3
Demand Depo Balances wit 3
Other liabilitContingent Li 3
Other liabilitContingent Li 3
Other liabilitContingent Li 4
Income side Expense side 2
Other liabilitContingent Li 3
Other assetsContingent a 3
Other liabilitContingent Li 4
Interest acc Gold 4
30 15 2
Bills Collect Bills Purcha 2
90 180 3
3 none 2
loss doubtful 1
at 2 per centat 0.40 per c 1
at 2 per centat 0.40 per c 2
at 2 per centat 0.40 per c 3
at 2 per centat 0.40 per c 3
at 2 per centat 0.40 per c 4
0.4 25 3
90 120 2
500 100 2
Current and Performing 4
12 months 180 days 3
35,000 None of the 1
Capital fund/None of the 2
Capital reserInvestment 3
100% 75% 3
realisable vanone of the 1

25% 10% 2`
IRDA RegulatAll of the ab 4
25% 10% 1`
Both (a) & (bNone of the 3
A separate bseparate rev 1
100% 30% 2`
Balance sheeAll of the ab 4
fifteen per None of the 3
fifteen per None of the 3
Schedule C Schedule D 2
Schedule C Schedule D 3
the re-insurethe insured h 4
need to be pneed to be p 3
when receivewhen receive 2
shall be exp shall be capi 3
shall be tak shall be ded 3
Current LiabiProvisions 2
Any item is Any item is 4
Advances Other Assets 3
Advances Other Assets 4
Advances Other Assets 4
Advances Other Assets 2
Advances Other Assets 2
Advances Other Assets 2
Advances Other Assets 2
Advances Other Assets 2
means the exmeans the ex 2
Claims IncurAll the abov 4
where the clnever 3
First year p None of the 2
Misc. ExpendProvisions 4
30th June 31st March 4
20 Schedule25 Schedule 2
Commission None
o of the 1
Commission None
o of the 2

Composite RNone of the 1

RelationshipRelationship 2
Composite RNone of the 2
Composite RNone of the 1
RelationshipRelationship 3
Composite RNone of the 1
RelationshipRelationship 2
Composite RNone of the 1
Composite RNone of the 2
Composite RNone of the 1
Composite RNone of the 2
Composite RNone of the 1
Composite RNone of the 2
Composite RNone of the 2
Composite RNone of the 2
Composite RNone of the 3
Composite RNone of the 3
Composite RNone of the 3
Composite RNone of the 3
Composite RNone of the 3
Composite RNone of the 3
Composite RNone of the 3
Stock turnovReturn on in 2
Stock turnovReturn on in 1
Stock turnovReturn on in 3
Stock turnovReturn on in 3
Stock turnovReturn on in 4
Operating Ra. 2
Operating ra. 1
Expenses ratDebt equity 4
65 % 1.33 1
65 % 1.33 2
65 % 1.33 3
65 % 1.33 4
65 % 1.33 1
Standard proStandard deb 1
Standard proStandard deb 2
Standard proStandard deb 3
Standard proStandard deb 4
Standard proStandard deb 1
Over-tradingOver-invest 1
Over-tradingOver-invest 2
Over-tradingOver-invest 3
Over-tradingOver-invest 4
Stock-turnoveStock to wor 2
Preference shNone of the 2
Fixed assets Fixed assets 3
Benefits of ease of raisi 3
Larger burdeA very satisf 4
has more funnone of the 3
If the compaGearing, whe 2
purchases ma good invent 2
unsatisfactora large marg 4
low increasevery good con 3
It takes 1½ mAll 4
there is undefunds blocked 3
company may none of the 3
company may none of the 2
Return on EqEarning Per 1
over-tradingnone of the 3
Long collect all the abov 1
There will be. 2
Both Capital Capital Geari 4
both none of thes 3
shareholderstax payable 1
current assetcurrent asse 2
current assetcurrent liabili 1
current assetcurrent asse 2
debt-equity none of thes 3
total capital total fixed a 2
low risk to c low risk to s 3
high sales high net sale 1
operating exnone of thes 4
sales none of thes 3
slow moveme low cost of 1

the shareholA company mu 2

it have no prit can be con 4
20 years form 25 years form 3
in a public A public com 4
called-up cappaid-up capi 2
in the event if all directo 3
more then auequal to rese 1
rights / bonuall the abov 4
stock must be stock is nev 2
25% of the is25% of the v 3
on the equityon the equity 3
on the asseton the asset 2
.@ 10% p.a .@ 12% p.a 3
share capitalshare capital 3
as an item oas a part of 4
capital rede Capital Rese 4
for cash or f for consider 3
if it is auth if it is auth 4
preference sh equity shares 2
cumulative pnon particip 3
cumulative pnon particip 1
(a) and (b) either (a) or 3
called up capnominal capi 4
called up capauthorized c 1
uncalled cappaid up capit 2
there will befull allotme 3
Reserve capitpaid up capit 2
reserve paid up 3
Reserve capitpaid up capit 4
must have mmust have mi 3
proportionatpreferential 1
IPO private plac 2
memorandum articles of a 1
can we use bo cannot be us 1
can we use bo cannot be us 3
1,50,000 1,20,000 1
nominal valucalled up a 4
general rese profit and l 1
20 100 2
non-cumulatigovernment s 1
1500 1100 4
30 none of thes 3
nil 200 3