A 'Shell Company' is a term used for: MCQ with Answer and Explanation

Question Report Error

A 'Shell Company' is a term used for:

A. A company with substantial assets

B. A listed company

C. A company with no active business or significant assets

D. A government company

Answer: Option C

Solution (By JKExamLibrary)

Shell companies exist mainly on paper with no significant operations or assets, often used for illicit activities.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Discuss this Question (0)

No comments yet. Be the first to start the discussion!

Practice More Accountancy and Book Keeping Questions

Question #1 Report Error

Under the Single Entry System, if opening capital is Rs 1,00,000, closing capital is Rs 90,000, and drawings are Rs 30,000 (no fresh capital), the profit is:

A. Rs 10,000 Loss

B. Rs 40,000

C. Rs 20,000

D. Rs 20,000 Loss

View Answer & Solution Discuss

Correct Answer: Option C

Explanation:
Profit = Closing Cap + Drawings - Opening Cap = 90,000 + 30,000 - 1,00,000 = Rs 20,000.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #2 Report Error

If a partner advances a loan to the firm and the partnership deed is silent, the interest on the loan is payable at:

A. 6% p.a.

B. Bank rate

C. 5% p.a.

D. 12% p.a.

View Answer & Solution Discuss

Correct Answer: Option A

Explanation:
The Indian Partnership Act stipulates that partners are entitled to 6% p.a. interest on any advances or loans given to the firm beyond their capital.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping