351. Who among the following can be appointed as auditor of a company?
A. A partner or a director of the company.
B. A person of unsound mind.
C. Mr. Y who owes Rs. 500 to the company.
D. Mr. Z the holder of C.A certificate.

352. Auditing standards differ from auditing procedures in that procedures relate to ________.
A. Measure of performance.
B. Audit principles.
C. Acts to be performed.
D. Audit judgments.

353. Confirmation of the court is necessary for __________.
A. increasing the share capital.
B. reduction of share capital.
C. conversion of shares into stock.
D. issue of new shares.

354. Profit prior to incorporation may be utilized to ___________.
A. write of goodwill
B. pay interest on purchase consideration
C. writing off fixed assets.
D. all the above.

355. Audit means ___________.
A. recording business transactions.
B. preparing the final accounts.
C. examination of books, accounts, vouchers etc.
D. preparing final accounts.

356. Auditor shall report on the accounts examined by him __________.
A. to the shareholders.
B. to the court.
C. to the bank.
D. to the general public.

357. Purchase of machinery is a ____________.
A. revenue receipt.
B. capital receipt.
C. capital expenditure.
D. revenue expenditure.

358. Sale of land is a __________.
A. revenue receipt.
B. capital receipt.
C. capital expenditure.
D. revenue expenditure.

359. Shares are forfeited on the non-payment of ____________.
A. share calls amount.
B. calls in advance.
C. minimum share capital.
D. debenture amount.

360. Prospectus is a document _________.
A. containing the rules and regulations of the company.
B. containing details about the manufacturing process of the company.
C. containing details about the share capital of the company.
D. containing the information of the sales.

NOTE
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