Practice Accounts Questions and Answers

• What is the minimum and maximum number of directors required in a Private Limited Company in India?
• How many persons are required to form a One Person Company (OPC) under the Companies Act, 2013?
• Which of the following statements is INCORRECT regarding Priority Sector Lending (PSL)?
• Under CGTMSE, what is the general provisioning requirement on loans covered under guarantee in case of default?
• Which of the following documents is NOT accepted as valid proof for opening a current account by a sole proprietor?
• What is the purpose of performing Due Diligence by banks under KYC norms?
• Which of the following best defines a Shell Bank under RBI KYC directions?
• Who is considered a Beneficial Owner under RBI KYC norms?
• Which of the following best describes the Interest Coverage Ratio (ICR)?
• Which of the following ratios is a measure of a firm's short-term liquidity position?
• A company has current assets worth ₹6,00,000 and current liabilities worth ₹3,00,000. What is its current ratio?
• If the annual sales of a business are ₹X, what is the Maximum Permissible Bank Finance (MPBF) as per the Turnover Method?
• If a firm has current assets worth ₹6 crore and current liabilities (excluding bank finance) of ₹3 crore, what is the maximum permissible bank finance ...
• A business has monthly cash inflows of ₹10 lakh and monthly outflows of ₹12 lakh. What is the working capital requirement as per the Cash Budget Method...
• What is the maximum loan amount that can be assessed under the Nayak Committee's Turnover Method?
• How is working capital provided by banks calculated under the Turnover Method?
• Monthly purchases = ₹20 lakh, lead time = 2 months. What is the LC amount required for an Inland Letter of Credit (LC)?
• An LC limit of ₹48 lakh is sanctioned, and the lead time is 3 months. What is the projected annual purchase of raw material?
• If annual purchases = ₹240 lakh and lead time = 2 months, how many LCs are needed in a year?
• Under which type of Letter of Credit (LC) is advance payment allowed to the beneficiary before shipment?
• Which of the following is NOT a direct party to a Letter of Credit (LC)?
• What is the minimum provision percentage on Doubtful Assets classified under IRAC norms (Doubtful for more than 1 year)?
• Under IRAC norms, an ad hoc limit sanctioned to a borrower is treated as NPA if not reviewed or renewed within how many days?
• A delay of 31 to 60 days in repayment of loan obligation to a bank will be classified under which category as per IRAC norms?
• What is the provisioning requirement on a loan classified as a standard asset and given to an MSME enterprise?
• If the realisable value of security held by a bank is less than what percentage of the exposure, the asset is treated as unsecured (loss asset)?
• Which of the following bank-financed facilities is NOT classified as NPA even when other credit facilities of the same borrower are classified as NPA?
• A bill discounted or purchased (with recourse) by a bank becomes a Non-Performing Asset (NPA) if the bill remains overdue for more than how many days?
• As per RBI's regulatory framework (2022), a microfinance loan is defined as a collateral-free loan given to a household with annual income up to how much?
• What is the purpose of performing Due Diligence by banks under KYC norms?
• Who is considered a Beneficial Owner under RBI KYC norms?
• What is the standard range of a CIBIL score used for individual credit evaluation in India?
• What is the composite loan limit that can be sanctioned by banks to MSE entrepreneurs under a single window for both working capital and term loan needs?
• Under the MUDRA scheme, a loan of up to ₹50,000 is categorized under which product?
• Loans up to how much qualify as micro loans under the Credit Guarantee Fund for Micro Units (CGFMU)?
• Under CGFMU, the amount in default over and above the initial 3% borne by the lending institution is covered to what extent?
• RXIL (Receivables Exchange of India Ltd.) is a joint venture of which two institutions?
• What is the maximum cost of the project/unit eligible under PMEGP for Margin Money subsidy in the manufacturing sector (for new units)?
• What is the maximum cost of the project/unit allowed under PMEGP for 2nd loan in the manufacturing sector (for upgradation)?
• What is the rate of subsidy under PMEGP for a General Category beneficiary setting up a project in a rural area?