The 'Independent Director' under Companies Act is appointed for: MCQ with Answer and Explanation

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The 'Independent Director' under Companies Act is appointed for:

A. Listed companies and certain prescribed classes of public companies

B. Small companies

C. All companies

D. Private companies

Answer: Option A

Solution (By JKSSB Mock Tests)

Independent directors are required for listed companies and specified public companies.

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

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Practice More Accountancy and Book Keeping Questions

Question #1

In financial management, the 'Cost of Capital' is:

A. The minimum return required by investors

B. The total cost of setting up a business

C. The interest paid on loans

D. The depreciation cost

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Correct Answer: Option A

Explanation:
The cost of capital is the minimum rate of return that a company must earn on its investments to satisfy its investors and creditors.

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

Question #2

Goods given away as charity should be credited to:

A. Sales Account

B. Charity Account

C. Purchases Account

D. Cash Account

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Correct Answer: Option C

Explanation:
Donating goods reduces the stock of purchased goods. Thus, the Purchases account is credited at cost price.

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

Question #3

A 'Trial Balance' is a:

A. Ledger account

B. Subsidiary book

C. Part of journal

D. Statement

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Correct Answer: Option D

Explanation:
Trial Balance is a statement listing all ledger balances to verify arithmetical accuracy.

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