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| MCQ Questions for Class 12 Accountancy Chapter 7 With Answers PDF |
MCQ Questions for Class 12 Accountancy Chapter 7 With Answers PDF: Multiple Choice Questions (MCQs) are a popular method of testing a student's understanding of a particular subject. They are widely used in school and college exams as they are a quick and efficient way to assess a student's knowledge.
An MCQ Questions for Class 12 Accountancy Chapter 7 consists of a question or statement, followed by several answer options, of which the student must choose the correct one. The answer options are usually presented as a list of possible choices, such as A, B, C or D.
MCQ Questions for Class 12 Accountancy Chapter 7 With Answers PDF
- What is a debenture? a) An ownership certificate in a corporation b) A loan to a government c) A debt security issued by a corporation d) An investment in a government bond
Answer: c) A debt security issued by a corporation
- What is the purpose of issuing debentures? a) To raise capital for the company b) To repay existing debts c) To pay dividends to shareholders d) To acquire new assets
Answer: a) To raise capital for the company
- Who is the lender in a debenture? a) Shareholders b) Directors c) Bondholders d) Employees
Answer: c) Bondholders
- What is the maturity period of a debenture? a) The length of time until the next shareholder meeting b) The length of time until the next board meeting c) The length of time until the debenture must be repaid d) The length of time until the company must issue a new debenture
Answer: c) The length of time until the debenture must be repaid
- What is the difference between a bond and a debenture? a) Bonds are secured and debentures are unsecured b) Debentures are secured and bonds are unsecured c) Bonds pay a fixed interest rate and debentures pay a variable rate d) Debentures pay a fixed interest rate and bonds pay a variable rate
Answer: a) Bonds are secured and debentures are unsecured
- What is the difference between a convertible debenture and a non-convertible debenture? a) Convertible debentures can be converted into equity shares, non-convertible debentures cannot b) Non-convertible debentures can be converted into equity shares, convertible debentures cannot c) Convertible debentures have a higher interest rate, non-convertible debentures have a lower rate d) Non-convertible debentures have a higher interest rate, convertible debentures have a lower rate
Answer: a) Convertible debentures can be converted into equity shares, non-convertible debentures cannot
- What is redemption of debentures? a) The process of issuing new debentures b) The process of buying back debentures by the company c) The process of selling debentures to the public d) The process of exchanging debentures for bonds
Answer: b) The process of buying back debentures by the company
- Why do companies redeem debentures? a) To pay dividends to shareholders b) To repay existing debts c) To raise capital for the company d) To acquire new assets
Answer: b) To repay existing debts
- What is the sinking fund method of redemption of debentures? a) A method in which the company sets aside money in a special fund to repay the debentures at maturity b) A method in which the debenture holders set aside money in a special fund to repay the debentures at maturity c) A method in which the government sets aside money in a special fund to repay the debentures at maturity d) A method in which the company borrows money from the government to repay the debentures at maturity
Answer: a) A method in which
Benefits of MCQ Questions for Class 12 Accountancy Chapter 7
One of the benefits of using MCQ Questions for Class 12 Accountancy Chapter 7 is that they are easy to grade. The correct answer is already provided, so the teacher or exam proctor simply needs to check that the student has chosen the correct option. This makes MCQ Questions for Class 12 Accountancy Chapter 7 more efficient than open-ended questions, which require more time and effort to grade.
Another benefit of MCQ Questions for Class 12 Accountancy Chapter 7 is that they can test a wide range of knowledge, including factual information, concepts, and problem-solving skills. They can also be used to test a student's ability to apply knowledge to new situations, rather than just recall information.
Conclusion of MCQ Questions for Class 12 Accountancy Chapter 7 With Answers PDF
In conclusion, MCQ Questions for Class 12 Accountancy Chapter 7 are a popular method of testing a student's understanding of a particular subject. They are widely used in school and college exams as they are a quick and efficient way to assess a student's knowledge. But to minimize the drawbacks, it is important to write good MCQs and use a variety of question types. They can test a wide range of knowledge, including factual information, concepts, and problem-solving skills, but they should not be the only method of assessment, it's important to use different types of questions to evaluate a student's understanding of a subject.
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