Saturday, February 26, 2011

Legal Aspects of Finance - 19

Legal Aspects of Finance - 19

Multiple Choice Single Answer
Question
In which of the companies the bonus act is applicable?
Correct Answer
More than 20 persons employed

Select The Blank
Question
Authorized dealer may freely open ________ and allow remittance for import of
goods.
Correct Answer
Letter of credit


Multiple Choice Single Answer
Question
Which person is responsible for he payment of wages act ?
Correct Answer
Managers


Multiple Choice Single Answer
Question
As per the provisions of Companies Act 1956, company can issue shares with :-
Correct Answer
Differential voting rights

Multiple Choice Single Answer
Question
To whom does the payment of wages act apply to ?
Correct Answer
Persons employed in any factory

Multiple Choice Multiple Answer
Question
What sums are deductible from gross profit under section 8?
Correct Answer
Amount by way of depreciation , Employment rebate or investment allowance ,
Direct tax

Multiple Choice Multiple Answer
Question
What do you mean by wages?
Correct Answer
Remuneration by way of salaries , Allowances , Expressed in terms of money

Multiple Choice Multiple Answer
Question
What does an industrial or other establishment means as per section 2II?
Correct Answer
Tramway service or motor transport service engaged carrying passengers of hire or
reward , Dock wharf jetty , Plantation

True/False
Question
A piece rated worker is entitled to bonus.
Correct Answer
True


Multiple Choice Single Answer
Question
s
Correct Answer
In 1936

Multiple Choice Single Answer
Question
No preference shares can be redeemed unless they are :-
Correct Answer
Fully paid up

Multiple Choice Single Answer
Question
What do you mean by establishment on private sector?
Correct Answer
Any establishment other than public sector

Multiple Choice Multiple Answer
Question
Person permanently resident in India can return foreign exchange by :-
Correct Answer
From AD , Travelling abroad , As a gift
True/False
Question
Wages include any contribution paid by the employer to any pension fund or
provided fund.
Correct Answer
False


Multiple Choice Single Answer
Question
ECB stands for :-
Correct Answer
External Commercial Borrowings

Multiple Choice Single Answer
Question
Deductions are authorized under which section?
Correct Answer
Section 7(2)

Select The Blank
Question
Payment of ________ requires registration from RBI.
Correct Answer
Royalty

Multiple Choice Single Answer
Question
Define an employed person under section 2 of the act.
Correct Answer
Includes legal representative of a deceased employed person

Multiple Choice Multiple Answer
Question
Describe in brief what does the term wages include?
Correct Answer
Remuneration under any award , Settlement between the parties or order of court ,
Overtime


Multiple Choice Multiple Answer
Question
How can you compute available surplus under section 5?
Correct Answer
Gross profit less deductions , Direct tax calculated in accordance to provisions of
section 7 in respect to amount equal to gross profits of the employer for
immediately preceding accounting year

True/False
Question
Every company has to appoint an auditor to audit the accounts of the company and
has to fix remuneration to be paid to the auditor.
Correct Answer
True


Multiple Choice Single Answer
Question
FEMA Norms are compatible with :-
Correct Answer
FERA


Match The Following
Question
Correct Answer

Section 2(vi)
Wages

Wages act
1936

Factories act
1948

Section 3 of wages act
Every employer responsible for payment to employed persons

Select The Blank
Question
The definition of ECB in India is partly in alignment with ________ Act.
Correct Answer
FERA

Select The Blank
Question
Articles of Association are rules for ________.
Correct Answer
Internal management

Multiple Choice Multiple Answer
Question
Section 24 provides bar to entertain suits by the court for recovery of wages in so
far as the sum claimed falls within which of the following categories :-
Correct Answer
For which any application claim has already been presented , Direction of claim
already given' , Amount adjudged is not due to penalty

Multiple Choice Single Answer
Question
What is the minimum salary under which the persons are covered in this act?
Correct Answer
Less than Rs 1600


Select The Blank
Question
________ of the company has a right to take inspection of the books of account.
Correct Answer
Any Director

True/False
Question
The minimum wages act came in force on 15 march 1968
Correct Answer
False


Select The Blank
Question
The recommendations of audit committee relating to financial management shall be
________.
Correct Answer
Binding


Multiple Choice Multiple Answer
Question
Who are governed by the payment of wages act?
Correct Answer
Employed persons , Salary less than 1600 per month


Multiple Choice Single Answer
Question
What do you mean by accounting year?
Correct Answer
Day on which books of accounts of the corporation are closed

True/False
Question
Directors' Report may contain details/ state of affairs of its subsidiaries.
Correct Answer
True


True/False
Question
A part time worker as sweeper engaged in regular business is entitled bonus.
Correct Answer
True

Multiple Choice Single Answer
Question
In which case did the Bombay high court observe the general purpose of the act?
Correct Answer
Arvind mills ltd case


Select The Blank
Question
First AGM should be held within ________ from closure of financial year.
Correct Answer
9 months



Multiple Choice Single Answer
Question
Quorum required to hold a valid meeting can be prescribed in :-
Correct Answer
Articles of Association


Select The Blank
Question
Private Company prohibits public to ________ for any shares.
Correct Answer
Subscribe


Multiple Choice Single Answer
Question
Payment of wages act came into existence :-
Correct Answer
To ensure regular and timely payment of wages to employed persons

Match The Following
Question
Correct Answer

Interim Dividend
Board of Directors

Reduction of capital
Special Resolution

Appointment of Managing Director
Ordinary Resolution
ROC

Accounting Standards
National Advisory Committee



Select The Blank
Question
For making alterations before ROC, ________ is required.
Correct Answer
Power of Attorney

Multiple Choice Multiple Answer
Question
What is the main purpose of the payment of wages act 1936?
Correct Answer
Ensure payment of wages to the employed , Prevent unauthorised deductions ,
Prevent arbitrary fines


True/False
Question
Company can not issue shares with differential voting/ dividend rights.
Correct Answer
False


True/False
Question
The Board has power to alter Articles of Association being internal document.
Correct Answer
False
Your Answer
True
Multiple Choice Multiple Answer
Question
What is the board procedure ?
Correct Answer
Meeting to be held 4 times in a year , Should not be a gap of more than 4 months
between 2 meetings , Minimum information should be made available
Your Answer
Meeting to be held 4 times in a year , Should not be a gap of more than 4 months
between 2 meetings , Minimum information should be made available
Multiple Choice Single Answer
Question
When was the factories act passed?
Correct Answer
In 1948
Your Answer
In 1948
True/False
Question
No additional fees is payable on increased authorised capital since already paid on
original authorised capital.
Correct Answer
False

Legal Aspects of Finance - 18

True/False
Question A probationer is an employee and as such is not entitled to business.
Correct Answer False


True/False
Question Charge includes Mortgage.
Correct Answer True


Multiple Choice Multiple Answer
Question Which committees are considered for calculating the limit of the companies
Correct Answer Audit committees , Remuneration Committee , Shareholders Grievance
Committee


Multiple Choice Single Answer
Question Which person is responsible for he payment of wages act ?
Correct Answer Managers


Multiple Choice Multiple Answer
Question FDI prohibited activities are :-
Correct Answer Retail trading , Gambling & betting , Housing & real estate


Multiple Choice Single Answer
Question What is computed by the competent authority at concessional rates?
Correct Answer Cost of living allowance and cash value
True/False
Question Articles of Association is not required to be stamped if Memorandum is
adequately stamped.
Correct Answer False

Multiple Choice Multiple Answer
Question The auditor shall inquire :-
Correct Answer Whether transactions of the company which are represented merely by book
entries are not prejudicial to the interest of the company or members , Whether
loans & advances made by the company have been shown as deposits , Whether
personal expenses have been charged to revenue account

Multiple Choice Multiple Answer
Question Remuneration to the director may be paid :-
Correct Answer Monthly , Quarterly , Annually


Multiple Choice Single Answer
Question If date of incorporation is 1.1.2005, first AGM must be held before :-
Correct Answer 30.6.2006


Multiple Choice Single Answer
Question Define an employed person under section 2 of the act.
Correct Answer Includes legal representative of a deceased employed person

True/False
Question Wages does not include any gratuity payable on discharge.
Correct Answer True


Multiple Choice Multiple Answer
Question Remittance completely prohibited on :-
Correct Answer Dividend balancing , Telephone expanses , Interest on funds

Match The Following
Question- Correct Answer

Audit Report- Opinion on the examination of
books of accounts


Auditor -A person who conducts the audits
Qualified for audit -Eligible to conduct the audit
Cost auditor- A cost accountant, who is suppose
to conduct cost audit of the
company.


Select The Blank
Question Copies of annual accounts are to be filed within ________ days from AGM with
ROC.
Correct Answer 30 days

Select The Blank
Question WOS can make payment of royalty by ________ route.
Correct Answer Automatic route

Multiple Choice Multiple Answer
Question What is the manner of fixation of minimum wages?
Correct Answer Time work known as minimum time rate , Piece work known as minimum piece
rate , Guaranteed time rate for those employed in piece work for the purpose of
securing to such employees a minimum rate of wages on time work basis

Question How much percentage of block of voting shares does the independent director
not own ?
Correct Answer 0.02

True/False
Question An employee employed through contractors on building operations is entitled to
bonus.
Correct Answer False

True/False
Question A non executive director is not a substantial shareholder of the company.
Correct Answer True
Multiple Choice Multiple Answer
Question Directors' Responsibility Statement refers to :-
Correct Answer Going concern , Accounting policies , Accounting standards

Multiple Choice Multiple Answer
Question Following are the Forms to be submitted to ROC for incorporation of company
Correct Answer Form 32 , Form 29 , Form 1

True/False
Question The act is undoubtedly a welfare legislation in favour of workers and more than
an essential measure for economic upliftment of the workers in the sweated
industries.
Correct Answer True

Multiple Choice Single Answer
Question Authentication of Annual Accounts means :-
Correct Answer Correctness of the accounts

Multiple Choice Multiple Answer
Question For registering certain resolutions, following documents are submitted :-
Correct Answer Form 23 , Certified copy of resolution , Copy of explanatory statement

Multiple Choice Single Answer
Question If an auditor after his appointment becomes subject to any of the
disqualifications, it is treated that the office is :-
Correct Answer Vacated

Select The Blank
Question ________ shall lay before the AGM, the statement of Income & Expenditure in
place of Profit & Loss a/c.
Correct Answer Charitable Trust

True/False
Question An independent Director is not an executive director of a Company.
Correct Answer False


Select The Blank
Question The ________ issue shall be by way of public issue.
Correct Answer NCD

Multiple Choice Multiple Answer
Question Director can be appointed without counting the number in :-
Correct Answer Private limited company , Unlimited company , Charitable association

Multiple Choice Single Answer
Question It should be noted that the company has to pay on loan document the :-
Correct Answer Stamp duty


Multiple Choice Single Answer
Question Which period results for the company are required to be made available to the
board in the meeting of board of directors?
Correct Answer Quarterly results

Multiple Choice Single Answer
Question Venture capital Funds are regulated as per the Norms of :-
Correct Answer SEBI

True/False
Question FEMA is also applicable to agencies outside India that are controlled by
residents in India.
Correct Answer True

True/False
Question Wages include any contribution paid by the employer to any pension fund or
provided fund.
Correct Answer False

Select The Blank
Question The Postal ballot paper should be returned to the company within ________
from the dispatch of ballot paper.
Correct Answer 30 days


Select The Blank
Question The recommendations of audit committee relating to financial management
shall be ________.
Correct Answer Binding
Multiple Choice Multiple Answer
Question Company can take loan from :-
Correct Answer Banks , Financial Institutions , Debenture Holders


Select The Blank
Question The management should clearly disclose ________ in auditors report
Correct Answer Contingent liabilities

Match The Following
Question -Correct Answer
Capital Account -Guarantee by a person resident
Living Expenses -Current Account
Deposits -Capital Account
The Adjudicating -Authority Power of Classification

Select The Blank
Question Sweeping powers such as search and arrest contained in Foreign Exchange
________ Act.
Correct Answer Control


Select The Blank
Question For making alterations before ROC, ________ is required.
Correct Answer Power of Attorney

Select The Blank
Question Preference shareholders have ________ to get dividend over equity share
holders.
Correct Answer Preferential right

Select The Blank
Question For private company, number of members do not include ________.
Correct Answer Employees of company

Multiple Choice Single Answer
Question Who is empowered to specify the Foreign Exchange transactions limits under
FEMA?
Correct Answer Reserve Bank of India

Multiple Choice Single Answer
Question Long - term borrowings schemes have which maturity period?
Correct Answer Eight years


Multiple Choice Multiple Answer
Question What are the powers of the audit committee?
Correct Answer To investigate any activity within its terms of reference , To seek information
from any employee , To obtain outside legal or professional advice

Legal Aspects of Finance - 17
True/False
Question A probationer is an employee and as such is not entitled to business.
Correct Answer False


True/False
Question Charge includes Mortgage.
Correct Answer True


Multiple Choice Multiple Answer
Question Which committees are considered for calculating the limit of the companies
Correct Answer Audit committees , Remuneration Committee , Shareholders Grievance
Committee


Multiple Choice Single Answer
Question Which person is responsible for he payment of wages act ?
Correct Answer Managers

Multiple Choice Multiple Answer
Question FDI prohibited activities are :-
Correct Answer Retail trading , Gambling & betting , Housing & real estate
Multiple Choice Single Answer
Question What is computed by the competent authority at concessional rates?
Correct Answer Cost of living allowance and cash value


True/False
Question Articles of Association is not required to be stamped if Memorandum is
adequately stamped.
Correct Answer False


Multiple Choice Multiple Answer
Question The auditor shall inquire :-
Correct Answer Whether transactions of the company which are represented merely by book
entries are not prejudicial to the interest of the company or members , Whether
loans & advances made by the company have been shown as deposits , Whether
personal expenses have been charged to revenue account

Multiple Choice Multiple Answer
Question Remuneration to the director may be paid :-
Correct Answer Monthly , Quarterly , Annually


Multiple Choice Single Answer
Question If date of incorporation is 1.1.2005, first AGM must be held before :-
Correct Answer 30.6.2006

Multiple Choice Single Answer
Question Define an employed person under section 2 of the act.
Correct Answer Includes legal representative of a deceased employed person

True/False
Question Wages does not include any gratuity payable on discharge.
Correct Answer True


Multiple Choice Multiple Answer
Question Remittance completely prohibited on :-
Correct Answer Dividend balancing , Telephone expanses , Interest on funds
Match The Following
Question- Correct Answer
Audit Report -Opinion on the examination of
books of accounts


Auditor- A person who conducts the audits
Qualified for audit- Eligible to conduct the audit
Cost auditor- A cost accountant, who is suppose
to conduct cost audit of the
company.


Select The Blank
Question Copies of annual accounts are to be filed within ________ days from AGM with
ROC.
Correct Answer 30 days


Select The Blank
Question WOS can make payment of royalty by ________ route.
Correct Answer Automatic route
Your Answer Authority route
Multiple Choice Multiple Answer
Question What is the manner of fixation of minimum wages?
Correct Answer Time work known as minimum time rate , Piece work known as minimum piece
rate , Guaranteed time rate for those employed in piece work for the purpose of
securing to such employees a minimum rate of wages on time work basis

Multiple Choice Single Answer
Question How much percentage of block of voting shares does the independent director
not own ?
Correct Answer 0.02

True/False
Question An employee employed through contractors on building operations is entitled to
bonus.
Correct Answer False


True/False
Question A non executive director is not a substantial shareholder of the company.
Correct Answer True

Multiple Choice Multiple Answer
Question Directors' Responsibility Statement refers to :-
Correct Answer Going concern , Accounting policies , Accounting standards


Multiple Choice Multiple Answer
Question Following are the Forms to be submitted to ROC for incorporation of company
Correct Answer Form 32 , Form 29 , Form 1

True/False
Question The act is undoubtedly a welfare legislation in favour of workers and more than
an essential measure for economic upliftment of the workers in the sweated
industries.
Correct Answer True

Multiple Choice Single Answer
Question Authentication of Annual Accounts means :-
Correct Answer Correctness of the accounts

Multiple Choice Multiple Answer
Question For registering certain resolutions, following documents are submitted :-
Correct Answer Form 23 , Certified copy of resolution , Copy of explanatory statement


Multiple Choice Single Answer
Question If an auditor after his appointment becomes subject to any of the
disqualifications, it is treated that the office is :-
Correct Answer Vacated


Select The Blank
Question ________ shall lay before the AGM, the statement of Income & Expenditure in
place of Profit & Loss a/c.
Correct Answer Charitable Trust

True/False
Question An independent Director is not an executive director of a Company.
Correct Answer False

Select The Blank
Question The ________ issue shall be by way of public issue.
Correct Answer NCD

Multiple Choice Multiple Answer
Question Director can be appointed without counting the number in :-
Correct Answer Private limited company , Unlimited company , Charitable association

Multiple Choice Single Answer
Question It should be noted that the company has to pay on loan document the :-
Correct Answer Stamp duty


Multiple Choice Single Answer
Question Which period results for the company are required to be made available to the
board in the meeting of board of directors?
Correct Answer Quarterly results

Multiple Choice Single Answer
Question Venture capital Funds are regulated as per the Norms of :-
Correct Answer SEBI

True/False
Question FEMA is also applicable to agencies outside India that are controlled by
residents in India.
Correct Answer True


True/False
Question Wages include any contribution paid by the employer to any pension fund or
provided fund.
Correct Answer False

Select The Blank
Question The Postal ballot paper should be returned to the company within ________
from the dispatch of ballot paper.
Correct Answer 30 days

Select The Blank
Question The recommendations of audit committee relating to financial management
shall be ________.
Correct Answer Binding


Multiple Choice Multiple Answer
Question Company can take loan from :-
Correct Answer Banks , Financial Institutions , Debenture Holders

Select The Blank
Question The management should clearly disclose ________ in auditors report
Correct Answer Contingent liabilities

Match The Following
Question -Correct Answer
Capital Account- Guarantee by a person resident

Living Expenses- Current Account

Deposits- Capital Account

The Adjudicating Authority -Power of Classification

Select The Blank
Question Sweeping powers such as search and arrest contained in Foreign Exchange
________ Act.
Correct Answer Control


Select The Blank
Question For making alterations before ROC, ________ is required.
Correct Answer Power of Attorney



Select The Blank
Question Preference shareholders have ________ to get dividend over equity share
holders.
Correct Answer Preferential right

Select The Blank
Question For private company, number of members do not include ________.
Correct Answer Employees of company

Multiple Choice Single Answer
Question Who is empowered to specify the Foreign Exchange transactions limits under
FEMA?
Correct Answer Reserve Bank of India

Multiple Choice Single Answer
Question Long - term borrowings schemes have which maturity period?
Correct Answer Eight years

Multiple Choice Multiple Answer
Question What are the powers of the audit committee?
Correct Answer To investigate any activity within its terms of reference , To seek information
from any employee , To obtain outside legal or professional advice

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