Wednesday, 5 June 2013

Legal Aspects of Finance

    LIST OF ATTEMPTED QUESTIONS AND ANSWERS


True/False
Question
Indian companies are exempted from filing a return by ECB-2.
Correct Answer
False
Your Answer
False

Select The Blank
Question
The minimum wages act which determines the rate of wages in industries specified in the schedule attached to the act are called ________
Correct Answer
Scheduled employment
Your Answer
Promotions

Match The Following
Question
Correct Answer
Your Answer
Audit Report
Opinion on the examination of books of accounts
Opinion on the examination of books of accounts
Auditor
A person who conducts the audits
A person who conducts the audits
Qualified for audit
Eligible to conduct the audit
Eligible to conduct the audit
Cost auditor
A cost accountant, who is suppose to conduct cost audit of the company.
A cost accountant, who is suppose to conduct cost audit of the company.

Multiple Choice Multiple Answer
Question
SIA/FIPB approval is necessary in :-
Correct Answer
13 specified activities , Sector limits sought exceeded , Small scale sector items
Your Answer
13 specified activities , Sector limits sought exceeded

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

Multiple Choice Single Answer
Question
A person cannot be appointed as a director in more than :-
Correct Answer
20 companies
Your Answer
20 companies

Select The Blank
Question
Board has power to receive of notice of ________.
Correct Answer
Disclosure of interest
Your Answer
Disclosure of interest

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
Your Answer
Form 23 , Certified copy of resolution , Copy of explanatory statement

Multiple Choice Single Answer
Question
Maturity period for USD 5 million scheme is :-
Correct Answer
Three years
Your Answer
Three years

Multiple Choice Multiple Answer
Question
Books of account with respect to following are required to be kept :-
Correct Answer
Money received & expended , Sales & purchases of goods , Assets & liabilities
Your Answer
Money received & expended , Sales & purchases of goods , Assets & liabilities

Multiple Choice Multiple Answer
Question
The register in respect of every investment or loan made, contains
Correct Answer
The amount, terms & conditions & purpose of investment or loan or security or guarantee , The date on which the investment or loan has been made , The name of body corporate
Your Answer
The name of body corporate , The amount, terms & conditions & purpose of investment or loan or security or guarantee , The date on which the investment or loan has been made

Select The Blank
Question
________shall certify that they have reviewed the balance sheet and profit and loss account.
Correct Answer
CEO
Your Answer
CEO

Select The Blank
Question
________ is a scheduled employment carried out under the authority of central government.
Correct Answer
Competent authority
Your Answer
Competent authority

Multiple Choice Single Answer
Question
Every auditor who has in receipt from the company of the intimation of his appointment, has to inform Registrar in writing that he has accepted or refused to accept the appointment within :-
Correct Answer
30 Days
Your Answer
30 Days

Match The Following
Question
Correct Answer
Your Answer
Indian company borrowings
Redemption more than 3 years
Redemption more than 3 years
Borrowing by NRE
Loan less than 3 years
AICTE Act
Borrowings in Rupees
Regulated ROI
Regulated ROI
NCD issue
Public issue
Public issue

Multiple Choice Multiple Answer
Question
Board of directors have to take consent of general meeting for :-
Correct Answer
Sale, lease or dispose of company's property , Give time to repayment of debt due by director , Contribute to charitable funds exceeding Rs 50000/- or 5% of average net profits
Your Answer
Sale, lease or dispose of company's property , Give time to repayment of debt due by director , Contribute to charitable funds exceeding Rs 50000/- or 5% of average net profits

True/False
Question
Payment to a scheme of insurance of a post office is not a deduction.
Correct Answer
False
Your Answer
False

True/False
Question
Company may have nominee director.
Correct Answer
True
Your Answer
True

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
Your Answer
Amount by way of depreciation , Employment rebate or investment allowance , Direct tax

Select The Blank
Question
All transactions of the ________ with the company shall be disclosed in the annual report.
Correct Answer
Non executive chairman
Your Answer
Non executive chairman

Multiple Choice Single Answer
Question
Which companies have to comply with the provisions of Clause 49 of listing agreement ?
Correct Answer
Listed Companies
Your Answer
Listed Companies

Select The Blank
Question
The Forms 8 &13 should be filed in ________ to ragistrar of companies.
Correct Answer
Triplicate
Your Answer
Triplicate

Multiple Choice Single Answer
Question
Single director can sign the annual accounts if :-
Correct Answer
Only one director in India for the time being
Your Answer
Only one director in India for the time being

Multiple Choice Multiple Answer
Question
Form No. 1 can be signed by :-
Correct Answer
Chartered Accountant , Cost & Works Accountant , Advocate
Your Answer
Chartered Accountant , Cost & Works Accountant , Advocate

True/False
Question
Financial year and calendar year are one and the same thing.
Correct Answer
False
Your Answer
False

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

Multiple Choice Single Answer
Question
Proxy form generally should be :-
Correct Answer
Duly stamped and signed by all the joint-holders
Your Answer
Duly stamped and signed by all the joint-holders

Select The Blank
Question
________ of the company has absolute discretion in regard to inclusion or non inclusion of any matter in the minutes.
Correct Answer
Chairman
Your Answer
Chairman

True/False
Question
No additional fees is payable on increased authorised capital since already paid on original authorised capital.
Correct Answer
False
Your Answer
False

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
Your Answer
Form 32 , Form 29 , Form 1

Select The Blank
Question
________ includes legal representative of deceased employer.
Correct Answer
Employer
Your Answer
Employer

Multiple Choice Single Answer
Question
If there is any delay in filing Form- 8 &13 beyond 60 days from the execution of documents for the creation of charge, the company has to make petition to :-
Correct Answer
Company Law Board
Your Answer
Company Law Board

Multiple Choice Multiple Answer
Question
Conditions on borrowings by PIO are :-
Correct Answer
Non-repatriation basis , Loan by inward remittance , Account by lender in India
Your Answer
Non-repatriation basis , Loan by inward remittance , Account by lender in India

Select The Blank
Question
The auditor has to give his report that the accounts of the company gives ________.
Correct Answer
True & Fair view
Your Answer
True & Fair view

True/False
Question
After completion of Ordinary business other business is transacted at Extra ordinary General Meeting.
Correct Answer
False
Your Answer
False

Multiple Choice Single Answer
Question
Maturity period for foreign currency credit by overseas suppliers is :-
Correct Answer
More than 6 months & less 3 years
Your Answer
More than 6 months & less 3 years

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

True/False
Question
Acquiring foreign security on gift is allowed.
Correct Answer
True
Your Answer
True

Multiple Choice Multiple Answer
Question
Board's Report shall include :-
Correct Answer
Dividend recommended , Financial position of the company , Amounts transferred to Reserves
Your Answer
Dividend recommended , Financial position of the company , Amounts transferred to Reserves

Multiple Choice Multiple Answer
Question
What are the general provisions for punishment of other offences?
Correct Answer
Section 22 provides for the provision , Punishable with fine , Rs 500 fine
Your Answer
Section 22 provides for the provision , Punishable with fine , Rs 500 fine

Select The Blank
Question
RBI in consultation with ________ regulates the capital transactions.
Correct Answer
Central govt.
Your Answer
Central govt.

Multiple Choice Multiple Answer
Question
Board may by resolution passed at the meeting delegate the powers to :-
Correct Answer
Committee of directors , Managing director , Manager
Your Answer
Committee of directors , Managing director , Manager

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

Multiple Choice Single Answer
Question
In each board meeting director is paid by remuneration, which is known as :-
Correct Answer
Sitting fees
Your Answer
Sitting fees

True/False
Question
An independent director is an executive of a company in the immediately preceding 3 financial years of the company.
Correct Answer
False
Your Answer
False

Multiple Choice Single Answer
Question
After incorporation of the company, the first auditor is generally appointed within :-
Correct Answer
One Month
Your Answer
One Month

True/False
Question
Deductions for income tax, payable by the employed person is permissible.
Correct Answer
True
Your Answer
True

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