McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Business Administration (BBA) , Bachelor of Commerce (B Com) .
Chapters
| 151. |
Profit earned before acquisition of share is treated as: |
| A. | Revenue Profit |
| B. | Capital Profit |
| C. | Goodwill |
| D. | Revaluation Profit |
| Answer» B. Capital Profit | |
| 152. |
Preparation of consolidated statements as per AS 21 is : |
| A. | Optional |
| B. | Mandatory for All |
| C. | Mandatory for listed companies. |
| D. | Mandatory for PVT. companies. |
| Answer» C. Mandatory for listed companies. | |
| 153. |
Face value of debentures of subsidiary company, held by holding co.is deducted from: |
| A. | Debentures |
| B. | Cost of Control |
| C. | Minority Interest. |
| D. | Goodwill. |
| Answer» B. Cost of Control | |
| 154. |
Minority Interest includes: |
| A. | Share in share capital |
| B. | Share in capital profit |
| C. | Share in revenue profit |
| D. | All of the above. |
| Answer» D. All of the above. | |
| 155. |
Preparation of Holding Companies Accounts Deals with : |
| A. | AS-22 |
| B. | AS-21 |
| C. | AS-25 |
| D. | AS-12 |
| Answer» B. AS-21 | |
| 156. |
The time interval between the date of acquisition if shares in subsidiary company and date of balance sheet of holding company is known as : |
| A. | Pre-acquisition period |
| B. | Post -acquisition period. |
| C. | Pre- commencement peri |
| Answer» B. Post -acquisition period. | |
| 157. |
Shares are to be valued on ___________. |
| A. | Mergers |
| B. | Sale of shares |
| C. | Gift tax |
| D. | All of the above |
| Answer» D. All of the above | |
| 158. |
Quoted shares are those shares which are ___________. |
| A. | listed on the stock exchange |
| B. | quoted daily |
| C. | quoted by the seller |
| D. | quoted by the buyer |
| Answer» A. listed on the stock exchange | |
| 159. |
Under net asset method, value of a share depends on ___________. |
| A. | net assets available to equity shareholders |
| B. | net assets available to debentures holders |
| C. | net assets available to preference shareholders |
| D. | none of the above |
| Answer» A. net assets available to equity shareholders | |
| 160. |
Net asset value is also called as ___________. |
| A. | asset backing value |
| B. | intrinsic value |
| C. | liquidation value |
| D. | (a), (b) and (c) |
| Answer» D. (a), (b) and (c) | |
| 161. |
While deciding net asset value, fictitious assets ___________. |
| A. | should be considered |
| B. | should not be considered |
| C. | added to total assets |
| D. | none of the above |
| Answer» B. should not be considered | |
| 162. |
Net asset value method is based on the assumption that the company is ___________. |
| A. | a going concern |
| B. | going to be liquidated. |
| C. | A & B both |
| D. | none of the above |
| Answer» B. going to be liquidated. | |
| 163. |
Yield value depends on ___________. |
| A. | future maintainable profit |
| B. | paid-up equity capital |
| C. | normal rate of return |
| D. | none of the above |
| Answer» D. none of the above | |
| 164. |
F.M.P. for yield valuation is ___________. |
| A. | future profit |
| B. | profit that would be available to equity shareholders |
| C. | past profit |
| D. | none of the above |
| Answer» B. profit that would be available to equity shareholders | |
| 165. |
Fair value of a share is equal to ___________. |
| A. | Intrinsic value only |
| B. | Yield value only |
| C. | Average of intrinsic and yield value |
| D. | None of the above |
| Answer» C. Average of intrinsic and yield value | |
| 166. |
Value of a partly paid equity share is equal to ___________. |
| A. | Value of fully paid share - calls unpaid per share |
| B. | Calls in arrears per share |
| C. | Paid-up value per share |
| D. | None of the above |
| Answer» A. Value of fully paid share - calls unpaid per share | |
| 167. |
Investments are ………………. assets. |
| A. | Non trading |
| B. | Current |
| C. | Fixed assets |
| D. | Fictious |
| Answer» A. Non trading | |
| 168. |
………………………….. value depends on Net assets. |
| A. | Yield value |
| B. | Fair value |
| C. | Intrinsic value |
| D. | none |
| Answer» C. Intrinsic value | |
| 169. |
Yield value depends on………………………. |
| A. | Net profit |
| B. | Gross profits |
| C. | Operating profits |
| D. | Losses |
| Answer» A. Net profit | |
| 170. |
Fair value is the ……………… of intrinsic value and yield value. |
| A. | Average |
| B. | Total |
| C. | Net |
| D. | Difference |
| Answer» A. Average | |
| 171. |
EPS depends on net profit available to………………. Shareholders. |
| A. | Equity |
| B. | Preference |
| C. | Debenture |
| D. | Both A and B |
| Answer» A. Equity | |
| 172. |
F.M.P. stands for ………………… |
| A. | Firm maintainable profits |
| B. | Future maintainable profits |
| C. | False maintainable profits |
| D. | Foreign maintainable profits. |
| Answer» B. Future maintainable profits | |
| 173. |
P/E ratio is a relationship between……………….. and …………… |
| A. | MP/ EPS |
| B. | NP/EPS |
| C. | GP/ EPS |
| D. | LOSS/EPS |
| Answer» A. MP/ EPS | |
| 174. |
Intrinsic Value Method is also called as……………….. |
| A. | Yield method |
| B. | Fair value method |
| C. | Asset Backing method |
| D. | none |
| Answer» C. Asset Backing method | |
| 175. |
Yield value is based on the assumption that ………………. |
| A. | Revenue realisation |
| B. | Going concern |
| C. | Prudence |
| D. | Cost concept |
| Answer» B. Going concern | |
| 176. |
NRR stands for ………………………………. |
| A. | Normal rate of return |
| B. | Non resident |
| C. | Natural rate of return |
| D. | Nil rate of return |
| Answer» A. Normal rate of return | |
| 177. |
Goodwill is paid for obtaining __________. |
| A. | Future benefit |
| B. | Present benefit |
| C. | Past benefit |
| D. | None of the above |
| Answer» A. Future benefit | |
| 178. |
The company earns a net profit of 24,000 with a capital of1,20,000. The NRR is 10%. Under capitalisation of super profit, goodwill will be ___________. |
| A. | 1,20,000 |
| B. | 70,000 |
| C. | 12,000 |
| D. | 24,000 |
| Answer» A. 1,20,000 | |
| 179. |
Gross assets are 1,01,000, fictitious assets 350 are included in the gross assets. External liabilities are 7,500. 6% preference share capital is 45,000. Equity capital is 4,500 equity shares of 10 each fully paid. Average expected profit is 8,500. Transfer to reserves is 10% preference dividend is payable. NRR is 9%. The Net Asset Value Per share is ___________. |
| A. | 11 |
| B. | 10.70 |
| C. | 15 |
| D. | 20 |
| Answer» B. 10.70 | |
| 180. |
Fair value is not the average of intrinsic value and yield value. |
| A. | True |
| B. | False |
| C. | none |
| D. | none |
| Answer» B. False | |
| 181. |
In net Assets method all liabilities are consider. |
| A. | True |
| B. | False |
| C. | none |
| D. | none |
| Answer» B. False | |
| 182. |
How many IFRS are in force as of now? |
| A. | 65 |
| B. | 36 |
| C. | 37 |
| D. | 38 |
| Answer» A. 65 | |
| 183. |
Total no of interpretations applicable till date? |
| A. | 24 |
| B. | 26 |
| C. | 28 |
| D. | 30 |
| Answer» C. 28 | |
| 184. |
What is the transition date of IFRS in India? |
| A. | april 1, 2010 |
| B. | april 1, 2011 |
| C. | april 1, 2012 |
| D. | april 1, 2008 |
| Answer» B. april 1, 2011 | |
| 185. |
As per IAS 1, Presentation of financial statement, ______ no of items would constitute complete set of financial statements. |
| A. | atleast 5 |
| B. | atleast 6 |
| C. | 5 |
| D. | 6 |
| Answer» D. 6 | |
| 186. |
GAAP stands for |
| A. | generally accepted accounting principles |
| B. | globally accepted accounting practice |
| C. | generally allowable accounting principles |
| D. | generally allowable accounting practice |
| Answer» A. generally accepted accounting principles | |
| 187. |
Whether financial reviews by management, environment reports and value added financial statements are outside the scope of international financial reporting standards (IFRSs)? |
| A. | yes |
| B. | no |
| C. | not mentioned in ifrs |
| D. | still in consideration |
| Answer» A. yes | |
| 188. |
What is the term used to describe the time between the acquisition of assets for processing and their realization in cash or cash equivalents? |
| A. | processing cycle |
| B. | turnover |
| C. | operating cycle |
| D. | turnaround |
| Answer» C. operating cycle | |
| 189. |
Which sections of an annual report do IFRSs apply to? |
| A. | management report |
| B. | financial statements |
| C. | auditors report |
| D. | entire annual report |
| Answer» B. financial statements | |
| 190. |
How many formats are permitted for income and expense items under Ind AS 1? |
| A. | one |
| B. | two |
| C. | three |
| D. | four |
| Answer» B. two | |
| 191. |
Where should extraordinary items appear in an entity’s Statement of Comprehensive Income? |
| A. | other comprehensive income |
| B. | income statement |
| C. | notes |
| D. | nowhere |
| Answer» D. nowhere | |
| 192. |
When is offsetting permitted under Ind AS 1? |
| A. | always |
| B. | never |
| C. | when required or permitted under an ifrs |
| D. | when approved by the board of directors |
| Answer» C. when required or permitted under an ifrs | |
| 193. |
Which of the following is not a component of a Statement of Financial Position? |
| A. | non-current assets |
| B. | retained earnings |
| C. | cost of goods sold |
| D. | deferred tax |
| Answer» C. cost of goods sold | |
| 194. |
Which of the following is not a requirement in the financial statements under Ind AS 1? |
| A. | name of the entity |
| B. | chairman’s commentary on performance |
| C. | the accounting period |
| D. | presentation currency |
| Answer» B. chairman’s commentary on performance | |
| 195. |
Under Ind AS 1 how often should financial statements be prepared? |
| A. | at least annually |
| B. | no more than annually |
| C. | as often as the company requires |
| D. | monthly |
| Answer» A. at least annually | |
| 196. |
Correcting the recognition measurement and disclosure of amounts in financial statements as if a prior period error had never occurred. This is: |
| A. | retrospective restatement |
| B. | retrospective application |
| C. | changes in accounting estimate |
| D. | delayed application |
| Answer» A. retrospective restatement | |
| 197. |
Under Ind AS 16 how often the useful life of an asset should be reviewed? |
| A. | at least at each financial year end |
| B. | every six months |
| C. | at management’s discretion |
| D. | never |
| Answer» A. at least at each financial year end | |
| 198. |
Under Ind AS 16 if an asset is idle |
| A. | depreciation is paused |
| B. | depreciation for the entire period does not apply |
| C. | depreciation is ignored |
| D. | depreciation continues |
| Answer» D. depreciation continues | |
| 199. |
Which of these is an allowable cost of an asset under Ind AS 16? |
| A. | general overheads |
| B. | professional fees |
| C. | administration expenses |
| Answer» B. professional fees | |
| 200. |
What is the net amount an entity expects to obtain for an asset at the end of its useful life? |
| A. | depreciated value |
| B. | residual value |
| C. | present value |
| D. | fair value |
| Answer» B. residual value | |
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