The 'One Person Company' (OPC) can be converted into a private or public company after: MCQ with Answer and Explanation

The 'One Person Company' (OPC) can be converted into a private or public company after:
A. Never
B. Any time
C. Only after 5 years
D. Completing two years from incorporation (or earlier if threshold exceeds)
Answer: Option D
Solution (By JKSSB Mock Tests)
OPC must convert if its paid-up capital exceeds ₹50 lakh or turnover exceeds ₹2 crore, or voluntarily after 2 years.

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Practice More Accountancy and Book Keeping Questions

Question #1
S1: Revaluation Account is a nominal account. S2: Revaluation Account is prepared to ascertain the profit or loss on revaluation of assets and liabilities. Which statement(s) is/are correct?
A. Neither S1 nor S2
B. S2 only
C. Both S1 and S2
D. S1 only

Correct Answer: Option C


Explanation:
Revaluation Account records expenses (decreases in asset values) and incomes (increases in liability values), making it a nominal account. Its purpose is to calculate the net effect of revaluation on partners' capital. Both are correct.

Question #2
The use of 'Smart Contracts' in accounting is a direct result of development in:
A. Double Entry System
B. PFMS
C. Blockchain Technology
D. Cost Control

Correct Answer: Option C


Explanation:
Smart contracts are self-executing contracts with terms written into lines of code, running on blockchain networks.

Question #3
The 'Borrowing Costs' (Ind AS 23) that are directly attributable to acquisition, construction, or production of a qualifying asset are:
A. Written off over 10 years
B. Ignored
C. Expensed immediately
D. Capitalised as part of the cost of that asset

Correct Answer: Option D


Explanation:
Borrowing costs on qualifying assets are capitalised.