MCQ for CA Final Audit - Chapter 11 AUDIT OF NON-BANKING FINANCIAL COMPANIES
Sample Multiple Choice Questions (MCQ's) for CA Final - Paper 3 - Advanced Auditing and Professional Ethics - Chapter 11: AUDIT OF NON-BANKING FINANCIAL COMPANIES - For Practice relevant for May/Nov 23 Examinations
Q:1 Requirement of compulsory registration to commence or carry on the business of a NBFC is prescribed by:
- 45-I of the RBI (Amendment) Act, 1997
- 45-IA of the RBI (Amendment) Act, 1997
- 45-IB of the RBI (Amendment) Act, 1997
- 45-IC of the RBI (Amendment) Act, 1997
Answer: 2
Q:2 Which of the below mentioned companies are not required to be registered with the RBI to carry on the business of a NBFC:
- Venture Capital Fund/Merchant Banking companies/Stock broking companies registered with SEBI.
- Insurance Company holding a valid Certificate of Registration issued by IRDA.
- Housing Finance Companies regulated by National Housing Bank.
- All of the above.
Answer: 4
Q:3 A company desirous of commencing business of non-banking financial institution should have a minimum net owned fund of:
- ₹ 25 lakh.
- ₹ 50 lakh.
- ₹ 100 lakh.
- ₹ 200 lakh.
Answer: 4
Q:4 NBFC will be classified as systemically important NBFCS if:
- asset size is of ₹ 500 Cr. or more as per last audited balance sheet.
- total income from financial assets is ₹500 Cr. or more for the immediately preceding financial year.
- asset size is of ₹ 500 Cr. or more as per last audited balance sheet and total income from financial assets is ₹500 Cr. or more for the immediately preceding financial year.
- asset size is of ₹ 500 Cr. or more as per last audited balance sheet or total income from financial assets is ₹ 500 Cr. or more for the immediately preceding financial year.
Answer: 1
Q:5 Rationale for classifying a NBFCs as systemically important NBFCs is that:
- the activities of such NBFCs will have a bearing on the financial stability of the overall economy.
- they required relaxed norms for ease of doing business.
- the activities of such NBFCs will have a bearing on the financial stability of the NBFC industry.
- all of the above.
Answer: 1
Q:6 Asset Finance company may be defined as:
- Companies engaged in financing of physical assets supporting productive or economic activity and income arising therefrom is not less than 60% of total income.
- Companies engaged in financing of physical assets may or may not support productive or economic activity and income arising therefrom is not less than 60% of total income.
- Companies engaged in financing of physical assets supporting productive or economic activity and income arising therefrom is not less than 50% of total income.
- Companies engaged in financing of physical assets may or may not support productive or economic activity and income arising therefrom is not less than 50% of total income.
Answer: 1
CA Final - Paper 3 - Advanced Auditing and Professional Ethics - Chapter 12
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