S1: SEBI regulates the primary and secondary capital markets in India. S2: SEBI was established by a legislative act of Parliament. Which statement(s) is/are correct? MCQ with Answer and Explanation

S1: SEBI regulates the primary and secondary capital markets in India. S2: SEBI was established by a legislative act of Parliament. Which statement(s) is/are correct?
A. S1 only
B. S2 only
C. Neither S1 nor S2
D. Both S1 and S2
Answer: Option D
Solution (By JKSSB Mock Tests)
SEBI regulates both primary (new issues) and secondary (trading) markets to protect investors. It was initially established in 1988 and later given statutory powers through the SEBI Act, 1992. Both statements are correct.

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Practice More Accountancy and Book Keeping Questions

Question #1
Which of the following is a non-cash item in the Profit & Loss Account?
A. Commission paid
B. Salaries paid
C. Rent paid
D. Depreciation

Correct Answer: Option D


Explanation:
Depreciation is a non-cash expense, as no cash outflow occurs.

Question #2
The 'Surcharge' on income tax is levied for:
A. All taxpayers
B. Senior citizens only
C. Companies only
D. High-income individuals/entities

Correct Answer: Option D


Explanation:
Surcharge is additional tax on income above specified thresholds for individuals, HUFs, companies.

Question #3
When a firm is dissolved, unrecorded assets taken over by a partner are recorded by:
A. Debiting Realisation A/c, Crediting Partner's Capital A/c
B. Ignored
C. Debiting Partner's Capital A/c, Crediting Realisation A/c
D. Debiting Cash, Crediting Realisation

Correct Answer: Option C


Explanation:
Taking an asset reduces the amount payable to the partner (debit capital) and is treated as a realization of asset value (credit Realisation A/c).