711.The prime importance of investigation on behalf of an individual or firm intending to purchase an existing business is to
A.Ascertain value of asset
B.Ascertain the earning capacity of the concern
C.Estimation of value of good will
D. Extend of liabilities

712. Inflation of closing stock results is :-
A.Inflation of loss
B.Deflation of loss
C.Inflation of profit
D. Deflation of profit

713.Inflation of profit is possible due to :
A.Overvaluation of closing stock
B.Overstating purchase
C.Overstating opening stock
D. Overstating expenses

714. Charging excessive provision for depreciation results in
A.Less profit
B.More profit
C.No change in profit
D. No change in loss

715.The main purpose of management audit is to
A.Review the management operations
B.Check arithmetical accuracy
C.Prevent travel
D. Prevent error

716.Management audit is
A.Compulsory
B.Not compulsory
C.Compulsory under Income Tax Act
D.Compulsory under Indian Contract Act.

717.Special resolution means ——————-
A.1/3 majority
B.2/3 majority
C.½ majority

718.Ordinary resolution means ———————–
A.1/3 majority
B.2/3 majority
C.More than 1/2

719.The chartered Accountants Act is in —————–
A.1956
B.1959
C.1949

720.Section 633 of the companies Act deals with
A.Liability of auditor
B.Relief to the auditor
C. Punishment to the auditor

NOTE
IF YOU THINK ANY OF THE MCQ ABOVE IS WRONG.
PLEASE COMMENT WITH CORRECT ANSWER AND ITS DETAIL EXPLANATION IN COMMENT BOX.
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