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B Com Exam  >  B Com Test  >  Company Law  >  Test: Dividends & Audit- 2 - B Com MCQ

Dividends & Audit- 2 - Free MCQ Practice Test with solutions, B Com Company


MCQ Practice Test & Solutions: Test: Dividends & Audit- 2 (10 Questions)

You can prepare effectively for B Com Company Law with this dedicated MCQ Practice Test (available with solutions) on the important topic of "Test: Dividends & Audit- 2". These 10 questions have been designed by the experts with the latest curriculum of B Com 2026, to help you master the concept.

Test Highlights:

  • - Format: Multiple Choice Questions (MCQ)
  • - Duration: 10 minutes
  • - Number of Questions: 10

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Test: Dividends & Audit- 2 - Question 1
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According to Section 2(13) of the Companies Act, 2013, what does the term "Books of Account" include?

Detailed Solution: Question 1

The term "Books of Account" as per Section 2(13) of the Companies Act, 2013 includes records of all sums of money received and expended, sales and purchases of goods and services, and the assets and liabilities of the company.

Test: Dividends & Audit- 2 - Question 2
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According to Section 128 of the Companies Act, 2013, where should a company maintain its books of account?

Detailed Solution: Question 2

According to Section 128(1)(a), a company should maintain its books of account at its registered office. However, the company may also keep them at any other place in India as decided by the Board of Directors, and the Registrar of Companies should be informed within 7 days of such decision.

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Test: Dividends & Audit- 2 - Question 3
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What is the consequence of not complying with the maintenance of proper books of account under Section 128(6) of the Companies Act, 2013?

Detailed Solution: Question 3

Non-compliance with the maintenance of proper books of account, as per Section 128(6), may lead to the responsible individuals, such as managing directors, Chief Financial Officers, or other designated persons, facing imprisonment for up to 1 year or a fine ranging from Rs 50,000 to Rs 5 lakhs, or both.

Test: Dividends & Audit- 2 - Question 4
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What is the purpose of the Directors' Responsibility Statement as per Section 134(5) of the Companies Act, 2013?

Detailed Solution: Question 4

The Directors' Responsibility Statement, as per Section 134(5), states that directors are responsible for preparing the financial statements, adhering to accounting standards, selecting appropriate accounting policies, maintaining adequate accounting records, preparing the accounts on a going concern basis, devising internal financial controls, and ensuring compliance with applicable laws.

Test: Dividends & Audit- 2 - Question 5
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What does Section 129(3) of the Companies Act, 2013 require for companies with subsidiaries?

Detailed Solution: Question 5

Section 129(3) mandates that companies with subsidiaries must prepare consolidated financial statements in addition to their individual financial statements. These consolidated financial statements should be presented in the same form and manner as the company's own financial statements.

Test: Dividends & Audit- 2 - Question 6
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What is the consequence of a company contravening any provision of Section 134 of the Companies Act, 2013?

Detailed Solution: Question 6

If a company contravenes any provision of Section 134, the company itself may be fined, and the officers of the company in default (directors, CFO, etc.) may face imprisonment for up to 3 years or a fine ranging from Rs 50,000 to Rs 5 lakhs, or both.

Test: Dividends & Audit- 2 - Question 7
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According to Section 133 of the Companies Act, 2013, who recommends accounting standards for adoption by companies?

Detailed Solution: Question 7

Section 133 states that accounting standards, recommended by the Institute of Chartered Accountants of India (ICAI), are prescribed by the Central Government in consultation with and after examination of the recommendations made by the National Financial Reporting Authority (NFRA).

Test: Dividends & Audit- 2 - Question 8
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What is the primary purpose of a financial statement, as per the definition under Section 129 of the Companies Act, 2013?

Detailed Solution: Question 8

The primary purpose of a financial statement, as per Section 129, is to give a true and fair view of the state of affairs of the company and its financial performance. It includes a balance sheet, profit and loss account, cash flow statement, and other relevant information.

Test: Dividends & Audit- 2 - Question 9
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In case of a company contravening the provisions of maintaining proper books of account, who can be held responsible?

Detailed Solution: Question 9

In case of a company contravening the provisions of maintaining proper books of account, directors and officers of the company, such as managing directors and Chief Financial Officers, can be held responsible and may face penalties.

Test: Dividends & Audit- 2 - Question 10
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What does Rule 6 of the Companies (Accounts) Rules, 2014 specify regarding the consolidation of financial statements?

Detailed Solution: Question 10

Rule 6 specifies that certain conditions are to be met for a company to be exempted from preparing consolidated financial statements for its wholly owned subsidiaries. These conditions include the subsidiary not objecting, the company's securities not being listed, and compliance with the applicable Accounting Standards.

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About this B Com Practice Test

This test contains 10 MCQs on Dividends & Audit- 2 with detailed solutions for each question. It is part of the Company Law course on EduRev, designed to align with the current B Com syllabus. Each solution explains not just the correct answer but also gives you an understanding of the topic — not just to attempt the question but also help you prepare for the exam with practice.

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If you found this Dividends & Audit- 2 MCQ Test helpful, you can further enhance your B Com preparation with in-depth courses on EduRev, for all the subjects and topics available in Company Law course. The course offers:
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