Subject Code : 201 Section Code : 1->Section 1 Difficulty: 1

SubjectCode

QId Questions

AnswerKey

201 151

When the total of Trial Balance does not tally the difference is taken as:

:

(A) Suspense Account

(B) Profit and Loss Account

(C) Error Account

(D) Difference Account

(A)

201 152

Current Liabilities are obligations to be settled in _______.

______

(A) Short period

(B) Long period

(C) Immediately

(D) None of these

(A)

201 153

XY Ltd. sells its products on credit basis and its customers are associated with 2% credit risk. Its annual turnoveris expected at Rs.10,00,000 if credit is extended. If no credit is allowed the sales would be 70% thereon. Computenet profit on credit sales assuming cost of capital is 15% p.a. and variable cost 75% of sales, credit period is 30days. Cost of administration is 2% of credit sales.

XY 2% 10,00,000 70% 15% 75% , 30 2%

(A) Rs.2,47,500

(B) Rs.2,75,000

(C) Rs.2,52,500

(D) Rs.2,50,000

(A)

201 154 Greenways Ltd. issued 10,000 shares @ Rs.100 to the public under the terms: Rs. 20 on application; Rs.30 onallotment; Rs.25 on First Call; Rs.25 On Final Call. All moneys upto Allotment were duly received. But ashareholder holding 500 shares did not pay the first call amount due. Another shareholder who was allotted 250shares paid them up in full. Show how calls-in-advance will be shown in the Balance-Sheet.

10,000 100 20; 30 ; .25 25 500 250 , '--'

(A)

(B)

(B)

(C)

(D) None of these

201 155

(A) Rs.10,20,000

(B) Rs.12,40,000

(C) Rs.10,40,000

(D) Rs.14,20,000

(B)

201 156

EF Ltd. issued 1,000, 10% Debentures of Rs.100 each at a discount of 6%. The Debentures are repayable byannual drawings at the end of each year from the first year onwards at the rate of Rs.20,000 per year. Ascertainthe discount amount to be written off at the end of Fourth Year under Fluctuating Instalment Method.

EF 6% 1,000 100 , 10% 20,000

(A) Rs.400

(B) Rs.800

(C) Rs.6,000

(D) Rs.1,200

(B)

201 157 Mr. X, an industrialist (SME Category) decided to convert his firm into a limited company from 1 June 2016. Heobtained the Certificate of Incorporation on 1 October 2016 and the Certificate of Commencement of Business on1 December 2016. His accounts were to be closed on 31 March 2017. There were 30 employees in the firm on 1June 2016 and 20 more employees were appointed on 1 October 2016. Ascertain the weighted time ratio.

(C)

, ( ) 1 2016 1 2016 1 2016 31 2017 1 2016 30 1 2016 20

(A) 1 : 3

(B) 1 : 4

(C) 1 : 5

(D) 2 : 5

201 158

"Fictitious Assets" are to be shown on the assets side of the Balance Sheet under the Heading:

" " :

(A) Miscellaneous Expenditure

(B) Current Assets

(C) Investments

(D) Fixed Assets

(A)

201 159

(A) Rs.3,30,000

(B) Rs.5,30,000

(C) Rs.5,00,000

(D) Rs.3,70,000

(D)

201 160 The Directors of a public limited company have decided to write off Goodwill appearing Rs.50,000 at thebeginning of the year 2016-17. How will you treat this?

2016-17 50,000 ?

(A) Rs.50,000 should be shown separately in P&L Account.

(A)

50,000

(B) Credit P & L Account by Rs. 50,000 50,000

(C) Debit P & L Appropriation Account by Rs. 50,000

50,000

(D) Show in Balance Sheet under Assets Rs.50,000 50,000

201 161

Profit on sale of machinery comes under:

:

(A) Investing activity

(B) Financing activity

(C) Operating activity

(D) None of these

(B)

201 162

Which of the following is NOT a characteristic of cash-equivalents?

- ?

(A) Highly liquid

(B) Long-term

(C) Readily convertible into cash

(D) None of these

(B)

201 163

(A) Rs.5,00,000

(B) Rs.4,00,000

(C) Rs.4,40,000

(D) Rs.4,60,000

(A)

201 164 (B)

(A) Rs.25,000

(B) Rs.30,000

(C) Rs.20,000

(D) Rs.22,000

201 165

Anil sells an article to Prakash at 10% profit. Prakash sells it back to Anil at a loss of 10%. The transaction gives

10% 10%

(A) Loss to Anil

(B) Profit to Anil

(C) There is no loss or gain

(D) Prakash makes profit

(B)

201 166

In relation to a company, investors are least concerned with

,

(A) Profitability

(B) Short term liquidity

(C) Solvency

(D) Future share price

(B)

201 167 Which one of the following can be treated as capital expenditure?

?

(A) Acquisition of land, building, machinery etc. , ,

(B) Amount spent on modification of asset

(C) Expenses incurred for right to carry on a business

(D)

(D) All of these

201 168

As per accrual concept which one is NOT true

:

(A) Revenue expenditure = profit - =

(B) Revenue profit = expenditure

- =

(C) Sales + gross profit = revenue + =

(D) Revenue = profit + expenditure

= +

(C)

201 169

Which of the following provide frame work and accounting policies so that the financial statements of differentperiods are comparable

(A) Business standards

(B) Accounting standards

(C) Market standards

(D) None of these

(B)

201 170

What is the journal entry for goods purchased on credit?

() :

(A)

(B)

(C)

(D)

(A)

201 171 Which one of the following is NOT correct about Fund Flow Statement?

, - :

(A) Records inflows and outflows of cash only

(B) It is based on Cash Accounting System

(C) It measures changes in working capital.

(A)

(D) It is based on Accrual accounting system

201 172

Journal entry to be passed when goods are returned under "sale on approval basis" is

'' '' :

(A)

(B)

(C)

(D) None of these

(A)

201 173

XY Ltd. has a policy of maintaining a minimum cash balance of Rs.45,000. The Standard Deviation ofcompanys daily net cash Rs.1,000. The transaction cost is Rs.90 per transaction. The interest rate is 0.2% daily.Compute the upper limit as per Miler Orr Model:

XY 45000 1000 90 0.2% :

(A) Rs.41,500

(B) Rs.49,500

(C) Rs.43,500

(D) Rs.47,500

(B)

201 174

Which of the following statement is correct?

:

(A) Default costs are caused due to failure of customers to pay on time.

(B) Financial costs to support credit sales are referred to as collection costs

(C) Business firms should not opt for relaxation of credit standards as they cause increase in collection costs,amount of bad debts and financial costs.

,

(D) Receivables management involves a trade-off between costs and benefits or receivable.

( )

(D)

201 175 Which of the following statement is NOT TRUE?

:

(A) Cash discount increases the average collection period.

(B) The increase in credit period increases average investment in receivables.

(C) The credit term 3/10 net 30 implies that the customer is entitled to 3% cash discount only when he pays

(A)

within 10 days after the beginning of credit period, though the credit period is 30 days. "3/10 30" 3%

10 , 30

(D) Financial costs of investment in debtors are determined with reference to Cash Cost of Sales.

201 176

AB Ltd. purchased assets for Rs.4,80,000 from X & Co. payable in fully paid shares of Rs.100 each at a premiumof 20%. Which of the following is the correct Journal Entry in the Books of AB Ltd.

AB X & 4,80,000 , 100 20% AB

(A) X & Co. A/c : Dr. 4,80,000

To Share Capital A/c : 4,80,000

(B) X & Co. A/c : Dr. 4,80,000 To Share Capital A/c : 4,00,000

To Share Premium A/c :80,000

(C) Share Capital A/c : Dr. 4,00,000 Share Premium A/c : 80,000

To X & Co. A/c : 4,80,000

(D) X & Co. A/c : Dr. 5,60,000 To Share Capital A/c : 4,80,000

To Share Premium A/c : 80,000

(B)

201 177

The articles of association of Good Luck Ltd. provide for the following: i) That 10% of profit of each year shall be transferred to Reserve Fund;

ii) That an amount equal to 10% of equity dividend shall be set aside for bonus to staff; iii) That the balance available for distribution shall be applied:

a) In paying 7% on Cumulative Preference Shares, b) In paying 7% on Equity shares

c) One third of the balance available as additional dividend on preference shares and two-thirds as additionalequity dividend.

A further condition was also imposed by the Articles, namely, the balance carried forward shall not be reduced bythe provisions under (ii), (iii) (b) or (iii) (c) below a sum equal to 6% of the preference capital.

The company has issued 52,000 7% cumulative particularly preference shares of Rs.100 each fully paid. Theprofit for the year 2016-17 was Rs.28, 85,978 and the balance brought forward from the previous year was Rs.3,14,349. Provide Rs.12, 54,600 for taxation before making other appropriations. Ignore corporate dividend tax. Balance c/fd to Balance Sheet will be:

:

i) 10% ; ii) 10% ;

iii) : a) 7% , b) 7%

c) , , (ii), (iii () (iii) () 6% 100 52,000 7% 2016-17 28,85,978 3,14,349 12,54,600 c/fd :

(A) Rs.3,28,680

(B) Rs.3,60,580

(C) Rs.3,18,580

(D) Rs.3,65,680

(C)

201 178 (A)

(A) Rs.8,00,000

(B) Rs.80,000

(C) Rs.6,00,000

(D) Rs.12,00,000

201 179

Trading Account does not

:

(A) Compare the sales with the cost of those sales

(B) Calculate gross profit

(C) Show the effect of return on capital

(D) Include the cost of goods sold

(C)

201 180

Net current asset is equivalent to

:

(A) Fixed asset + current assets current liabilities + -

(B) Current liabilities current assets

-

(C) Stock + debtors + cash + +

(D) Working capital

(D)

201 181

In net profit ratio the denominator is

:

(A) Net purchase

(B) Credit sales

(C) Net sales

(D) Cost of goods sold

(C)

201 182 Unpaid calls are shown in the balance sheet of a company

:

(A) By adding it to share capital

(B) By deducting it from called up share capital

(C) Under current liabilities

(D) Under current assets

(B)

201 183

Interest cost incurred during construction phase or before the asset is put to use is accounted under

:

(A) Repair

(B) Maintenance

(C) Capital asset

(D) Cost of acquisition

(D)

201 184

Which concept satisfy valuation criteria

(A) Going concern, Realisation, Cost ( ), (),

(B) Going concern, Cost, Dual aspect

( ), ,

(C) Cost, Dual aspect, Conservatism , ,

(D) Realisation, Conservatism, Going concern

(), ( )

(A)

201 185

An asset was purchased for Rs. 5,00,000 with down payment of Rs. 2,00,000 and bills accepted for Rs. 3,00,000.The effect on total asset of the company will be

5,00,000 2,00,000 3,00,000 :

(A) Assets increased by 3,00,000 and liabilities decreased by 3,00,000

3,00,000 3,00,000

(B) Assets decreased by 3,00,000 and liabilities increased by 3,00,000 3,00,000 3,00,000

(C) Assets increased by 5,00,000 and liabilities decreased by 3,00,000

5,00,000 3,00,000

(D) Assets increased by 3,00,000 and liabilities increased by 3,00,000 3,00,000 3,00,000

(D)

201 186 Historical cost concept requires the valuation of an asset at

(A) Original cost

(B) Replacement value

(A)

(C) Net realizable value

(D) Market value

201 187

(A) Rs.3,10,000

(B) Rs.2,55,000

(C) Rs.1,95,000

(D) Rs.1,70,000

(C)

201 188

C was admitted into a Partnership firm for 5 years where A & B were already partners. C paid a premium ofRs.2,40,000. After 36 months, the partnership firm was dissolved due to misconduct of B. The amount of refundto Mr. C is:

C 5 A & B C 2,40,000 36 B (misconduct) C

(A) Rs.96,000

(B) Rs.1,44,000

(C) Rs.2,40,000

(D) None of these

(A)

201 189 A Building was purchased for Rs.48,00,000/- on 14/5/2012. Down payment of Rs.30,00,000/- was made and thebalance was to be paid on 14/4/2013. What is the amount on which depreciation on the building was to becharged as at 31/3/2013?

14.5.2012 48,00,000 30,00,000 14.4.2013 31.3.2013 :

(A) Rs.48,00,000

(B) Rs.30,00,000

(C) Rs.18,00,000

(A)

(D) Rs.24,00,000

201 190

Net Working Capital is equal to:

:

(A) Excess of current assets over current liabilities

(B) Excess of current liabilities over current assets

(C) Total current assets

(D) None of these

(A)

201 191

Arithmetical accuracy of basic entries, ledger posting & balancing is ensured by

, :

(A) Trial Balance

(B) Profit & Loss Account

(C) Cash Flow Statement

(D) Balance Sheet

(A)

201 192

Great Pvt. Ltd. bought machinery for Rs.1,00,000 on 01.01.2013 and spent Rs.10,000 on its installation. The lifeof the machinery is estimated to be 5 years & estimated scrap value at the end of period will be Rs. 5,000. Theamount of annual depreciation as per straight line method will be

01.01.2013 1,00,000 10,000 5 5,000 :

(A) Rs. 21,000

(B) Rs. 20,000

(C) Rs. 19,000

(D) Rs. 22,000

(A)

201 193

A sells goods to B for Rs. 20,000. A draws a bill on B who accepts the same to pay the amount after 2 months.Here, B is

A 20,000 B A, B 2 B :

(A) Drawee

(B) Drawer

(C) Payee

(D) Endorsee

(A)

201 194 The payment side of Cash Book is overcast by Rs.7000. If the starting point of the BRS is the Overdraft Balance (A)

as per pass Book, then what is to be done to reach to Overdraft Balance of Cash Book?

7,000 :

(A) Add Rs.7,000

7000

(B) Less Rs.7,000 7000

(C) Add Rs.13,000 13000

(D) Less Rs.3500

3500

201 195

If a bill of exchange dated 8th January is issued for 2 months after date, the date of maturity will be

8 2 , :

(A) 11th March 11

(B) 8th March

8

(C) 15th March 15

(D) 11th April

11

(A)

201 196

______ method of depreciation takes into account the element of interest on capital outlay and sees to write offthe asset and the interest cost over the life of asset

______ :

(A) Sinking fund

(B) Annuity

(C) Straight line

(D) Written down value

(A)

201 197

A Machine was purchased on 1st July 2010 for Rs. 14,000 and an amount of Rs.1000 was spent on itsinstallation. . The rate of depreciation is 10% p.a. every year. The books are closed on 31st December. Find thevalue of Machinery as on 31st Dec 2011 after following Diminishing Balance method of depreciation.

1 2010 14000 1000 10% 31 31 2011 :

(A) Rs. 12,825

(B) Rs.12,150

(C) Rs. 13,575

(D) Rs.13,500

(A)

201 198 Which of the following is TRUE?

:

(B)

(A) Two mutually exclusive projects (L & M) have been evaluated. Project L has an NPV of Rs.2 lakh and anIRR of 15 percent; Project M has NPV of and has an IRR of 17 percent. Since Project M has higher IRR, itshould be selected.

( ) 2 15 ; 2 17 ; ,

(B) Two competing projects have the following NPVs: Project A + Rs. 10 lakhs (with an initial outlay of Rs.30lakhs and Project B + Rs. 9 lakhs (with an initial outlay of Rs.27.5 lakhs). The company should opt for Project Aas it has higher NPV

: + 10 (30 ) + 9 (27.5 )

(C) The cost of capital for new projects is 16%. Two competing projects (P&Q) have IRR 15% and 13%respectively. Since IRR of project P is higher, it should be selected.

16% ( ) 15% 13% ,

(D) A project requires an initial investment of Rs.50 lakhs. The estimated profit after tax for years 1- 5 are: Rs.6lakhs, Rs.7 lakhs, Rs.7 lakhs, Rs.14 lakhs and Rs.18 lakhs, the accounting rate of return is 18%.

50 1-5 : 6 , 7 , 7 , 14 18 , 18%

201 199

(A) Combination of A + B + C

A + B + C

(B) Combination of A + D A + D

(C) Combination of A + C + D

A + C + D

(D) Combination of B + D B + D

(C)

201 200 (D)

(A) X = Rs.6,372; Y = Rs.10,657

(B) X = Rs.4,652; Y = Rs.9,997

(C) X = Rs.5,722; Y = Rs.10,957

(D) X = Rs.3,752; Y = Rs.10,975

201 201

Z Ltd. requires 5,000 units of a certain item per year. The Purchase Price per unit is Rs.20. The Carrying Cost ofinventory is 20% of the unit cost and the cost per order is Rs.400. Compute the total cost of ordering and cost ofcarrying inventory when 5 orders of equal size are placed.

Z 5,000 20 20% 400 5

(A) Rs.3,500

(B) Rs.2,500

(C) Rs.3,000

(D) Rs.4,000

(D)

201 202

Which of the following statement is NOT correct?

:

(A) The primary function of financial intermediaries is to convert direct securities into indirect securities.

(B) The two key financial markets are money market and capital market.

(C) Money market is a market for long term funds having maturity of more than one year.

(D) Organisation, underwriting and distribution are three services provided by the New issue market. ,

(C)

201 203 PQ Ltd. has been issued equity share which, are priced currently at Rs.108. The investors required rate of returnis 12% and the dividend grows at 8% per year. Compute the current dividend declared by the company:

PQ , 108 12% 8% :

(A) Rs.5

(B) Rs.4

(C) Rs.4.50

(B)

(D) Rs.5.50

201 204

The cash outgoings of XY Ltd. are estimated to be Rs.4,00,000 p.a. spread evenly throughout the year. Themoney on deposit earns 10% p.a. The switching cost per transaction is Rs.120. Calculate the optimum amount tobe transferred. Use Bau Mol Model:

XY 4,00,000 10% 120 : :

(A) Rs.30,000

(B) Rs.32,000

(C) Rs.33,333

(D) Rs.31,000

(D)

201 205

Equity Share Capital:Rs.1,50,000; 10% Pref. Share Capital:Rs.1,00,000; Reserve and Surplus :Rs.5,00,000; NetProfit after Tax: Rs.2,10,000. Return on Equity will be:

:1,50,000 , 10% :1,00,000 , : 5,00,000 , : 2,10,000 (return)

(A) 28%

(B) 20%

(C) 25%

(D) 30%

(A)

201 206

Margin of safety is calculated as

:

(A) Actual sales + Break even point sales +

(B) Actual production - Break even point sales

-

(C) Actual sales / Break even point sales /

(D) Actual sales - Break even point sales

-

(D)

201 207

Angle of incidence is the angle where

, -

(A) The total cost intersects the total sales

(B) Variable cost intersects fixed cost

(C) Fixed cost intersects total cost

(D) Variable cost intersects total Cost

(A)

201 208 If selling price per unit increases and other variables remain constant, the operating break-even point in units will (B)

, - :

(A) increase

(B) decrease

(C) constant

(D) None of these

201 209

Limitations of Break-even analysis

- (Break-even) :

(A) non-linear cost behaviour -

(B) presence of competition

(C) static concept

(D) capital not considered

(C)

201 210

Determine contribution if Fixed cost is Rs. 75000 and loss is Rs. 30000

75000 30000 , :

(A) Rs. 45000

(B) Rs. 105000

(C) Rs. 75000

(D) Rs. 30000

(A)

201 211

Determine P/V Ratio when Sales Rs. 80,000/- and variable cost Rs. 60,000/-

/ 80,000/- 60,000/- :

(A) 0.25

(B) 0.4

(C) 0.3

(D) 0.1

(A)

201 212

What is margin of safety if sales is Rs. 50,000 and BEP is Rs. 30,000

. 50,000 BEP . 30,000 :

(A) Rs. 20,000

(B) Rs. 30,000

(C) Rs. 80,000

(D) Rs. 50,000

(A)

201 213 Material cost Rs. 10, sales price Rs. 30, labour Rs. 5, Electricity Rs. 5, fixed cost Rs. 3000. The BEP will be

. 10, . 30, . 5, . 5, . 3000. BEP

(A) 300

(B) 3000

(C) 30

(D) 1000

(A)

201 214

Other valuable remain constant, if selling price decreases, the BEP will

, BEP

(A) Constant

(B) Increase

(C) Decrease

(D) None of these

(B)

201 215

Fixed assets in the business is for

(A) Converting to cash

(B) Generating revenue

(C) Resale :

(D) None of these

(B)

201 216

According to which concept the closing stock is credited to trading account?

, ?

(A) Cost

(B) Realisation

()

(C) Going concern ( )

(D) Matching

(D)

201 217 Any change in the capital account of the proprietor may occur due to

(A) Profit earned

(B) Loss incurred

(C) Capital introduced

(D)

(D) All of these

201 218

For computing the value of equity shares by yield method, it is essential to know:

, :

(A) Normal Rate of Return

(B) Net Assets

(C) Expected Rate of Return

(D) Capital employed

(C)

201 219

(A) Rs.62,881

(B) Rs.52,188

(C) Rs.61,818

(D) Rs.63,881

(A)

201 220

Variable cost Rs. 10, sale price Rs. 20. Total fixed cost Rs. 10,000. BEP will be

10 20 10,000 BEP :

(A) 1000 units

(B) 10000 units

(C) 100 units

(D) 2000 units

(A)

201 221 Which one is a used to test long term liquidity

(A) Interest coverage ratio

(B) Stock turnover ratio

(C) Operating ratio

(D) Current ratio

(A)

201 222

Which of the following is a budget according to function:

,

(A) Fixed budget

(B) Operating budget

(C) Flexible budget

(D) Long term budget

(B)

201 223

A bond has 3 years remaining until maturity. It has a par value of Rs.1000. The coupon interest rate on bond is10%. Compute the yield to Maturity (YTM) at current market price of Rs.900.

3 1000 10% 900 (YTM)

(A) 14.63%

(B) 12.03%

(C) 13.63%

(D) 14.03%

(D)

201 224

(B)

(A) (Rs.500 Rs.25): Rs.12,500 will be shown on the Assets side of the Balance-sheet.

(B) Rs.12,500 is to be shown as deducted from the issued and subscribed capital on the Liabilities side of theBalance-sheet.

(C) Rs.12,500 is not to be shown in the Balance-sheet.

(D) None of these

201 225

(A) Rs.65,000

(B) Rs.2,11,000

(C) Rs.1,47,000

(D) Rs.1,30,000

(D)

201 226

The term acquisition of business refers to:

" " :

(A) purchase of business of sole trading concern or partnership firm by an existing company

(B) conversion of sole trading concern or partnership firm into a limited company

(C) Both purchase of business of sole trading concern or partnership firm by an existing company and conversionof sole trading concern or partnership firm into a limited company

(D) The purchase of business of one limited company by another limited company.

(C)

201 227

Mr. X, an industrialist (SME Category) decided to convert his firm into a limited company from 1 June 2016. Heobtained the Certificate of Incorporation on 1 October 2016 and the Certificate of Commencement of Business on1 December 2016. His accounts were to be closed on 31 March 2017. Time Ratio is :

X, (SME ) 1 2016 1 2016 1 , 2016 31 2017 :

(A) 1 : 3

(B) 2 : 3

(C) 1 : 1

(D) 1 : 2

(A)

201 228 Mr. VR and Mr. ST, partners of a firm agreed to sell their firm to a limited company on 1 April 2016. It wasincorporated on 1 July 2016. It got Certificate of Commencement of Business on 1 August 2016. Final Accountswere prepared on 31 March 2017. It was found that the sales were uniform upto the date of incorporation butwent up by 100% on an average thereafter. Compute the weighted sales ratio.

(D)

VR ST, 1 2016 1 2016 1 2016 31 2017 100%

(A) 2 : 3

(B) 1 : 2

(C) 1 : 5

(D) 1 : 6

201 229

Which of the following statement is NOT TRUE?

:

(A) In other than Joint Stock Company forms of business concerns, the Final Accounts of such entities are splitinto two sections: Trading A/c and Profit and Loss A/c.

, :

(B) In Company Accounts, a BOLD Line is drawn between P&L A/c and P&L Appropriation A/c.

,

(C) Items that are to be shown in Trading and P & L A/c are called above line items. " "

(D) Items that are to be shown in and P&L Appropriation A/c are called below line items.

" "

(B)

201 230

Balance of profit in P&L Appropriation A/c has to be carried to the Balance Sheet and shown under the heading:

:

(A) Share capital

(B) Reserves and surplus

(C) Provisions

(D) Miscellaneous Expenditure

(B)

201 231

A product is sold at Rs. 100/- the variable cost is Rs. 80/- and Fixed cost is Rs. 5000/-. What will be the breakeven point in units

100 80 5000 :

(A) 250

(B) 500

(C) 600

(D) 225

(A)

201 232 Degree of solvency of two firms are compared by

:

(A) Net worth

(D)

(B) Tangible net worth

(C) Asset ratio

(D) Solvency ratio

201 233

Financial leverage means-

:

(A) High degree of solvency

(B) Low bank finance

(C) Use of more debt capital

(D) None of these

(C)

201 234

Which of the following accounts is a non-current liability?

- ?

(A) Share capital

(B) Bank loan

(C) Retained earnings

(D) Trade payables

(B)

201 235

ABC company has current liabilities Rs. 30,000 and total liability Rs. 80,000 and current asset Rs. 50,000 andtotal asset Rs. 1,50,000/-. Equity of ABC company is

ABC 30,000 80,000 50,000 1,50,000 ABC :

(A) Rs. 70,000

(B) Rs. 90,000

(C) Rs. 1,10,000

(D) Rs. 95,000

(A)

201 236

Which of the following accounts in a current liability?

?

(A) Tax payable

(B) Inventories

(C) Bank deposits

(D) Fixed assets

(A)

201 237 Price per share is Rs. 60 and earning per share is Rs. 7. The P/E Ratio will be

60 7 / :

(A) 8.57 times

(B) 7.85 times

(C) 8.75 times

(D) 8.00 times

(A)

201 238

Net income available to stock holder is Rs. 1.25 lacs and total assets are Rs. 10.96 lacs. The return on commonequity will be

1.25 10.96 :

(A) 11.04%

(B) 11.4%

(C) 111.4%

(D) 111.04%

(B)

201 239

The market value of a listed company is not shown on its balance sheets because

(A) Market value is not known till balance sheet date

(B) Market value changes over time

(C) Shares are generally a small portion of the company

(D) None of these

(D)

201 240

Which of the following is s short term liquidity ratio

(A) Cash ratio

(B) Quick ratio

(C) Inventory ratio

(D) All of these

(D)

201 241 The gross profit is unchanged but net profit margin declined over the same period. This could happen if

:

(A) Cost of goods sold increased relative to sale

(B) Sales increased relative to expense

(C) Increase in tax rate

(C)

(D) Dividends were decreased.

201 242

Net profit signifies-

:

(A) Operational profitability

(B) Liquidity position

(C) Solvency

(D) Profit for lenders

(A)

201 243

Working capital turnover measures the relationship of working capital with ______.

, ______

(A) Fixed assets

(B) Sales

(C) Purchases

(D) Stock

(A)

201 244

Return on shareholders investments calculates __________.

______

(A) All reserves

(B) Preference of equity capitals

(C) All appropriations -

(D) All of these

(D)

201 245

If total cost of 100 units are Rs. 4000 and cost of 105 units are Rs. 4100, then the variable cost per unit is

100 4000/- 105 4100/- ,

(A) Rs. 20

(B) Rs. 200

(C) Rs. 60

(D) Rs. 65

(A)

201 246 Fixed assets Rs.6,00,000/- , current assets Rs. 4,00,000/- , capital Rs. 5,00,000/-, fixed liabilities Rs. 2,50,000/- ,current liabilities RS. 2,50,000/-. The solvency ratio will be

. 6,00,000, . 4,00,000, . 5,00,000, . 2,50,000,

(A)

. 2,50,000

(A) 20%

(B) 30%

(C) 40%

(D) 50%

201 247

P/E ratio is calculated by dividing market price per equity by ________.

/ , ________

(A) Earning per share

(B) Current assets

(C) Current liabilities

(D) Liquid assets

(A)

201 248

Acid test ratio is quick current assets divided by _______.

, _____

(A) Current liabilities

(B) Current assets

(C) Total liabilities

(D) Total assets

(A)

201 249

Average stock level = ?

=?

(A) 1/2 (Maximum stock level + Minimum stock level) 1/2 ( + )

(B) (Maximum stock level + Minimum stock level) ( + )

(C) 1/2 (Maximum stock level - Minimum stock level) 1/2 ( )

(D) 1/4 (Minimum stock level + Maximum stock level) 1/4 ( + )

(A)

201 250 Which of the following is not a reason(s) of depreciation of a fixed asset?

, :

(A) Proper maintenance

(B) Passage of time

(C) Obsolescence ( )

(A)

(D) Usage

201 251

When the prices of raw material constantly decreasing, LIFO method of raw materials issue

, (LIFO) :

(A) Results in lower cost of production

(B) Results in higher cost of production

(C) Does not affect the cost of production

(D) All the statements are incorrect

(A)

201 252

Which of the following items is not an item of direct expense?

:

(A) General travelling expense

(B) Architect's fees

(C) Payment of royalty for using technology

(D) Hire charges for special machines that is used in relation to a specific job

(A)

201 253

re intended to be used over the prolonged period before becoming unusable or obsolete and the store having asignificant disposal value. This type of stores falls under which category?

, :

(A) NCS

- (...)

(B) LTAS (....)

(C) CS

(..)

(D) None of these

(A)

201 254

Mr. A wants to know the present value of Rs.5,000 to be received 5 years from now, assuming 10% rate ofinterest. Compute the present value.

A 5 5,000 , 10% :

(A) Rs.3,105

(B) Rs.5,500

(C) Rs.4,500

(D) Rs.4,000

(A)

201 255 If the frequency of compounding is more than 1, relationship between annual effective rate of interest and annualnominal rate of interest will be:

(C)

1 , :

(A) Effective Rate = Nominal Rate

=

(B) Effective Rate < Nominal Rate <

(C) Effective Rate > Nominal Rate

>

(D) None of these

201 256

Compute the present value of a perpetuity of Rs.1,000 year if the discount rate is 10%.

1000 10%

(A) Rs.10,000

(B) Rs.100

(C) Rs.1,00,000

(D) None of these

(A)

201 257

Which of the following terms of issue of debentures (including terms of redemption) is not possible.

( ):

(A) Issue of debentures at Par, redeemable at Discount ,

(B) Issue of debentures at Par, redeemable at Premium ,

(C) Issue of debentures at Discount, redeemable at Premium

,

(D) Issue of debentures at Premium, redeemable at Premium ,

(A)

201 258

Own debentures mean:

:

(A) Debentures purchased for investment

(B) Debentures purchased for immediate consideration

(C) Debentures owned by the directors exclusively

(D) None of these

(A)

201 259 XY Ltd. took over the assets and liabilities of Rs.25,00,000 and Rs.2,50,000 of PQ Ltd. XY Ltd. paid thepurchase consideration of Rs.24,00,000 by issuing debentures of Rs.100 each at a premium of 20%. Determinewhich of the following option is correct:

XY PQ 25,00,000 2,50,000 XY 24,00,000 20% 100 :

(A) Goodwill : Rs.1,50,000

: Rs.1,50,000

(A)

(B) Capital Reserve: Rs.1,50,000 : Rs.1,50,000

(C) Goodwill : Rs. 8,00,000

: Rs. 8,00,000

(D) Capital Reserve: Rs.8,00,000 : Rs.8,00,000

201 260

LM Ltd. issued Rs. 5,00,000, 12% debentures of Rs.100 each at a premium of 20%. The Net effective rate ofinterest on debentures will be:

LM 100 5,00,000, 12% 20% :

(A) 15%

(B) 13%

(C) 10%

(D) 12%

(C)

201 261

RS Ltd. redeemed 4,800 15% debentures of Rs.100 each which were issued at Rs.110 by converting them intoequity shares of Rs.10 each issued at a discount of 4%. Compute the number of equity shares to be issued:

RS 100 4,800 15% 110 10 4% :

(A) 1,10,000 equity shares

1,10,000

(B) 52,800 equity shares 52,800

(C) 55,000 equity shares

55,000

(D) 48,000 equity shares 48,000

(C)

201 262

GH Ltd. purchased its own 500 debentures of the face value of Rs.50,000 from the open market for immediatecancellation at Rs.85 which of the following is the effect of cancellation of Debentures?

GH 50,000 500 85 , - ?

(A) Loss : Rs.5,000

: Rs.5,000

(B) Profit : Rs.5,000 : Rs.5,000

(C) Loss : Rs.7,500

: Rs.7,500

(D) Profit : Rs.7,500 : Rs.7,500

(D)

201 263 XY Ltd. issued 10,000 shares of Rs.10 each at Rs. 12 (at a premium of Rs. 2 per share) payable as follows: Rs. 2on application; Rs.3 on allotment; Rs.7 on First Call and the Final Call (including Premium). Correct JournalEntry for Receipt of Call Money will be: Journal Entry for Discount will be:

XY 10 10,000 12 ( 2 ) : 2 ; 3 ; 7 ( ) : :

(A)

(C)

(B)

(C)

(D) None of these

201 264

Which of the following is a non-cash operating activities?

?

(A) Issue of Bonus Share

(B) Depreciation on fixed assets

(C) Issuance of Equity Shares on cash

(D) Increase in inventories

(B)

201 265

Which of the following is true?

:

(A) Value of a bond is dependent solely on the interest payment it provides.

(B) Bond value will differ from its poor value, even though yield to maturity coupon rate.

, -

(C) For a bond, yield to maturity is always equal to coupon rate. ,

(D) If coupon rate = Required rate, the value of bond is equal to its par value.

= ,

(D)

201 266

SR Ltd. currently pays Rs.3 per share as annual dividend Assuming 10% required rate of return on shares Ke,compute the value of shares: Annual rate of growth, 5% to infinity:

SR 3 10% , : , 5%

(A) Rs.53

(B) Rs.70

(C) Rs.63

(D) Rs.66

(C)

201 267 (D)

(A) 4.13 years

(B) 3 years

(C) 4 years

(D) 3.93 years

201 268

(A) 11.78%

(B) 10.96%

(C) 10.78%

(D) 11.04%

(D)

201 269

A firm is considering to buy one of the following two mutually exclusive investment projects:

Project S: Buy a machine that requires an initial investment outlay of Rs.2,00,000 and with generate CFAT ofRs.60,000 per year for 5 years.

Project W: Buy a machine that requires an initial investment outlay of Rs.2,50,000 and with generate CFAT ofRs.54,000 per year for 8 years.

Assume 10% as cost of capital. Determine the Equivalent Annual Net Present Value (EANPV) of both theProjects.

:

S: , 2,00,000 5 60,000 CFAT

W: 2,50,000 8 54,000 CFAT

10% (EANPV) .

(A) S: Rs.7,140: W: Rs.7,514

(B) S: Rs.7,243: W: Rs.7,440

(C) S: Rs.7,243: W: Rs.7,140

(D) S: Rs.7,140: W: Rs.7,243

(C)

201 270

(A) Rs.45,805

(B) Rs.44,508

(C) Rs.44,805

(D) Rs.46,508

(C)

201 271

(A) Project A: 0.9039; Project B: 1.0358

(B) Project A: 1.0358; Project B: 0.9039

(C) Project A: 0.9039; Project B: 1.358

(D) Project A: 0.9039; Project B: 1.538

(A)

201 272

(A) 27%

(B) 25%

(C) 28%

(D) 25.5%

(A)

201 273 Compute EPS (Earnings per share) from the following data:

(A)

Total Funds to be raised = Rs.5,00,000; 50% to be raised through shares and 50% by Debt cost of Debt 10%; Taxrate 50%; Equity shares of Rs.10 each to be issued at 10% premium; Expected EBIT Rs.2,00,000.

EPS ( ) :

= Rs.5,00,000 50% 50% , 10% 50% 10 10 % EBIT 2,00,000

(A) 3.5

(B) 5

(C) 6.5

(D) 4.5

201 274

(A) Decrease 21 days

(B) Increase 20 days

(C) Decrease 20 days

(D) Increase 21 days

(B)

201 275

XYZ Ltd. issued 2,50,000 shares of Rs.100 each at a premium of 20%. The whole issue was underwritten by Mr.A. In addition, there is a firm underwriting of 30,000 shares by Mr. A. Applications for 2,00,000 shares werereceived by the company in all. Calculate the liability of Mr. A. (in number of shares).

XYZ 20% 100 250,000 A , A 30,000 2,00,000 A ( ) :

(A) 170000

(B) 80000

(C) 220000

(D) 20000

(B)

201 276 (D)

(A) A. 21000. B. 4500 C 6900

(B) A-12000, B-900, C- 3300

(C) A-14357, B 1500, C-7543

(D) A- 11357, B-900, C-3043

201 277

of the company to appropriate the profits: i) To transfer Rs.3,15,000 to General Reserve ii) To pay Rs.42,500 asex-gratia bonus to the employees of the company iii) To declare dividend at 5% on equity shares iv) To transferRs.22,500 to staff gratuity reserve v) To transfer Rs.25,000 to Development Rebate Reserve vi) To transferRs.45,000 to Deferred Taxation Reserve The companys capital consisted of 50,000 equity shares of Rs.10 eachfully paid for the year ending 31.3.2017, the directors transferred Rs.20,000 to Debenture Redemption Fund A/c.Compute the Balance to be carried forward to the Balance Sheet.

31.3.2017 10,50,000 65,200 : i) 3,15,000 ii) - 42,500 iii) 5% i) 22,500 ii) 25,000 iii) 45,000 31.3.2017 10 50,000 20,000

(A) Rs.6,07,700

(B) Rs.6,02,700

(C) Rs.6,07,200

(D) Rs.6,02,200

(B)

201 278 Shree Ltd. has a credit balance on P & L A/c of Rs.6,00,000 on 1.4.2016 and net profit for the year isRs.60,00,000. The following decisions were taken regarding provisions, reserves and dividends: i) GeneralReserve Rs.7,00,000 ii) Investment Allowance Rs.7,00,000 iii) Provision for Taxation @ 50% iv) DividendEqualisation Fund A/c Rs.4,00,000 v) Dividend on 10% Preference Shares of Rs.40,00,000 vi) Dividend on 15%on 6,00,000 equity shares of Rs.10 each fully paid. Compute Net profit after tax (to be carried forward to P&LAppropriation A/c)

1.4.2016 6,00,000 60 , : i) 7,00,000 ii) 7,00,000 iii) @ 50% iv) 4,00,000 v) 10% 40,00,000 vi) 10 6,00,000 15%

(A) Rs.6,00,000

(B) Rs.23,00,000

(C)

(C) Rs.30,00,000

(D) Rs.20,00,000

201 279

Which of the following is an example of sources of funds

:

(A) Decrease in share capital

(B) Decrease in long term liabilities

(C) Increase in fixed assets

(D) Increase in long-term liabilities

(B)

201 280

X Ltd. has part of its Share Capital in 5,000 12% Redeemable Preference Shares of Rs.100 each. The GeneralReserve of the Company shows a credit balance of Rs.6,00,000. The directors decided to utilize 70% of theReserve in redeeming pref. Shares and the balance is to be met from the proceeds of the fresh issue of sufficientnumber of equity shares of Rs.10 each. No. of fresh issue of shares will be:

X Ltd. 100 12% (Redeemable Preference) 5000 (General Reserve) 600000 70% 10 (proceeds)

(A) 14000

(B) 6000

(C) 3000

(D) 8000

(D)

201 281

Under income Tax Act, who is empowered to issue Zero Coupon Bonds?

, ____________ :

(A) All Scheduled Banks

(B) All NBFCs

(C) All Trusts

(D) All State Governments

(A)

201 282

ERM under internal Audit is

ERM

(A) Enterprise Risk Management

(B) Enterprise Resource Management

(C) Enterprise Resource Manual

(D) Enterprise Risk Manual

(A)

201 283 Surcharge in case of a domestic company if the income exceeds Rs 10 crore.

(A)

___________ 10

(A) 12%

(B) 10%

(C) 5%

(D) 7%

201 284

GST Council has been created

:

(A) As per Article 279A of the amended Constitution 279A

(B) As per Article 280A of the amended Constitution

280A

(C) As per Article 281A of the amended Constitution 281A

(D) As per Article 282A of the amended Constitution

282A

(A)

201 285

The amount of deduction in respect of salary paid to its own members in case of PFAOP is:

(A) Without any limit

(B) 1,50,000

1,50,000

(C) Nil Nil

(D) None of these

(A)

201 286

As per the Companies Act, 2013, which one of the following is not allowed for the companies to buy-back itsshares:

, 2013 , :

(A) Its free reserves

(B) The securities premium account

(C) The proceeds of specified securities like employees stock option

(D) The proceeds of an earlier issue of the same kind of shares

(D)

201 287 Form for Cancellation of Registration under GST is

GST ____________

(A) GST REG -16

(B) GST REG -17

(C) GST REG -18

(A)

(D) GST REG -19

201 288

Under GST CIN stands for

GST CIN :

(A) Challan Identification Number

(B) Computer Identification Number

(C) Cost Identification Number

(D) None of these

(A)

201 289

What is E-FPB under GST?

GST E-FPB ?

(A) Electronic Focal Point Branch

(B) Electronic Fund Payment Bank

(C) Electronic Focal Point Bank

(D) Electronic Focus Point Bank

(A)

201 290

In terms of GST what is RNR?

GST RNR ?

(A) Revenue Neutral Rate

(B) Revenue Natural Rate

(C) Rate of Non-Revenue

(D) Rate Neutral Revenue

(A)

201 291

As per the Payment of Wages Act 1936, when the wages of terminated employee is to be paid?

1936 , ?

(A) Before the expiry of the 2nd day from the date of termination of employment

(B) Before 7th of subsequent month of termination of employment

7

(C) Before the expiry of the 7th day from the date of termination of employment 7

(D) None of these

(A)

201 292 Which one of the following is TRUE about GST?

GST ?

(A) The final consumer will bear only the GST charged by the last dealer in the supply chain with set-off benefitsat all the previous stages

GST ,

(A)

(B) GST applies to imports GST

(C) It covers petrol I

(D) It covers entertainment taxes earlier levied by local bodies

201 293

Section ----- of the Companies Act which deals with Corporate Social Responsibility.

_________ :

(A) 135

(B) 136

(C) 137

(D) 138

(A)

201 294

Which one of the following is True in respect of issue of Shares at discount as per Companies Act 2013

2013 :

(A) Shares other than sweat shares cannot be issued at discount

(B) As per Sec 79, shares can be issued at discount with some conditions. 79 ,

(C) Shares can be issued at discount not exceeding 25%

25%

(D) None of these

(A)

201 295

SPICe =

(A) Simplified Pro-forma for Incorporating Company Electronically

(B) Simple Protocol for Incorporating Company Electronically

(C) Simplified Protocol for Indian Company Electronically

(D) Simplified Proforma for Indian Company Electronically

(A)

201 296

Form used for obtaining DIN is

DIN _______ :

(A) DIR 3

(B) DIR 2

(C) DIR 4

(D) DIR 5

(A)

201 297 le to:

, 1992 , 49 (VI) :

(A) Top 100 companies by market capitalisation

(A)

100

(B) Top 200 companies by market capitalisation 200

(C) Top 300 companies by market capitalisation

300

(D) Top 400 companies by market capitalisation 400

201 298

The following loss is not allowed to carry forward:

:

(A) House property loss

(B) loss from running and maintaining of race camels

(C) Loss under the head Income from other source

-

(D) None of these

(A)

201 299

Income on which equalization levy is charged is:

, :

(A) Chargeable under income tax

(B) Not chargeable under income tax

(C) Not an income under IT Act, 1961 IT Act, 1961

(D) None of these

(A)

201 300

The due date for remittance of Provident Fund is :

:

(A) 21st of the subsequent month 21

(B) 7th of the subsequent month

7

(C) 15th of the subsequent month 15

(D) 24th of the subsequent month

24

(A)