The 'Insolvency and Bankruptcy Board of India' (IBBI) regulates: MCQ with Answer and Explanation

The 'Insolvency and Bankruptcy Board of India' (IBBI) regulates:
A. Capital markets
B. Banking
C. Insolvency professionals, agencies, and processes under IBC
D. Companies Act compliance
Answer: Option C
Solution (By JKSSB Mock Tests)
IBBI is the regulator for insolvency and bankruptcy ecosystem.

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Practice More Accountancy and Book Keeping Questions

Question #1
S1: Under GST, the 'E-way bill' is required for the movement of goods where the consignment value exceeds ₹50,000. S2: The E-way bill is generated on the common portal by the registered person before the commencement of the movement of goods. Which statement(s) is/are correct?
A. S1 only
B. Both S1 and S2
C. Neither S1 nor S2
D. S2 only

Correct Answer: Option B


Explanation:
Both statements are correct. Rule 138 of the CGST Rules mandates an e-way bill for goods valued over ₹50,000, and it must be generated by the supplier/recipient before the goods are moved.

Question #2
In the context of AS 28 (Impairment of Assets), if a Cash Generating Unit (CGU) is impaired, the impairment loss is allocated to reduce the carrying amount of assets in what order?
A. First to goodwill, then to other assets pro-rata based on carrying amounts
B. First to other assets, then to goodwill
C. Equally to all tangible assets, ignoring intangible assets
D. Pro-rata based on carrying amounts of all assets

Correct Answer: Option A


Explanation:
AS 28 dictates that an impairment loss for a CGU must first reduce the carrying amount of any goodwill allocated to the CGU, and then to the other assets pro-rata based on their carrying amounts.

Question #3
The 'Government Company' as per Companies Act is one in which not less than 51% of paid-up share capital is held by:
A. Public
B. Central/State Government(s)
C. Foreign investors
D. RBI

Correct Answer: Option B


Explanation:
As per Section 2(45) of Companies Act, 2013, government company has at least 51% government shareholding.