MCQ for CA Intermediate Adv. Accounts - Chapter 8 - BANKING COMPANIES

Sample Multiple Choice Questions (MCQ's) for CA Intermediate - Paper 5 - ADVANCED ACCOUNTING - Chapter 8: BANKING COMPANIES - For Practice relevant for May/November 23 Examinations

 

Q1.  A banking company can pay dividend on its shares

  1. After writing off all its capitalized expenses including preliminary expenses.
  2. After charging depreciation on its investments.
  3. After charging bad debts where adequate provisions has been made to the satisfaction of the auditor.
  4. Before charging depreciation on its investments and writing off all its capitalized expenses.

Answer: 1

Q2.  On 1.4.20X1 Bills for collection were ₹ 10,000. During 20X1-20X2 bills received for collection amounted to ₹ 1,00,000, bills collected were ₹ 80,000 and bills dishonoured and returned were ₹ 5,000. What will be the amount of bills for collection (assets) account as on 31.3.20X2?

  1. 25,000
  2. 30,000
  3. 35,000
  4. None of the above.

Answer: 1

Q3.  Rebate on bill discounted is shown in the

  1. Assets side of the balance sheet.
  2. Liabilities side of the balance sheet.
  3. Income side of the income statement.
  4. Expense side of the income statement.

Answer: 2

Q4.  Bills for collection are shown

  1. On Assets side of the balance sheet.
  2. On liabilities side of the balance sheet.
  3. On the income side of the income statement.
  4. As note below the balance sheet.

Answer: 4

Q5.  What percentage of provision is required on standard assets (other than advances to agricultural, SME and Commercial Real Estate)?

  1. 10
  2. 40
  3. 0.40
  4. 0.25

Answer: 3

Q6.  In case of direct advances to agricultural and SME, What percentage of provision is required on standard assets? 

  1. 0.25
  2. 40
  3. 0.40
  4. 25

Answer: 1

Q7.  When income is to be recognized on cash basis by Safe Trust Bank, a distinction should be made between

  1. Banking and Non-banking assets.
  2. Monetary and Non-banking assets.
  3. Current and Non-current assets.
  4. Performing and Non-performing assets.

Answer: 4

Q8.  For the year ended 31st March, 20X1 non-performing assets classified as substandard in Centura Bank Ltd. will be classified as doubtful after

  1. 24 months
  2. 18 months
  3. 12 months
  4. 180 days

Answer: 3

Q9.  In case of advances to Commercial Real Estate (CRE) Sector, What percentage of provision is required on standard assets?

  1. 0.25
  2. 1.00
  3. 0.40
  4. 25.0

Answer: 2

 

CA Intermediate ADV. ACCOUNTS - MCQ for Chapter 9 -   

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