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COMPANY ACCOUNTS
(I) Choose the most appropriate one from given four alternatives
1. Underwriting Agreements are of
(A) One type
(B) Two types
(C) Three types
(D) Four types

2. Segment Reporting is covered under

(A) AS 16
(B) AS 17
(C) AS 18
(D) AS 19

3. On redemption of Debentures, the amount lying in Debenture Redemption Reserve,

which is no longer necessary to be retained, should be transferred to
(A) Revaluation Reserve
(B) Securities Premium Reserve
(C) Capital Reserve
(D) General Reserve

4. Rate of provisioning by a Bank for Advances doubtful for more than 1 year but less
than 3 years is
(A) 25%
(B) 40%
(C) 60%
(D) 100%

5. Balance of Interest Accrued on Security Deposit A/c of an Electricity company should

be shown
(A) under Current Liability
(B) under Non-current Liability
(C) under Current Asset
(D) under Non-current Asset

6. Which of the following items is not a part of cash flow from operating activities?
(A) Collection from customers
(B) Payment of outstanding wages
(C) Payment to suppliers of machinery
(D) Advances to foreign suppliers for raw materials

7. Which of the following is an intangible asset?

(A) Trade Marks
(B) Franchises
(C) Accounts Receivables
(D) Secret Profit

8. IASB stands for

(A) International Accounting Standard Board
(B) Indian Accounting Standard Board
(C) Institution of Accounting School Board
(D) None of the above

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9. Inventory is
(A) Included in Fixed Assets
(B) An investment
(C) A part of Current Assets
(D) An intangible

10. Which of the following is/are the source/s of bonus issue of shares?
(A) Free Reserves
(B) Securities Premium Account
(C) Capital Redemption Reserve Account
(D) All of the above

11. When a shareholder fails to pay calls, the company, if empowered by its articles,
may_
(A) Surrender the shares
(B) Forfeit the shares
(C) Reissue the shares
(D) All of the above

12. Which of the following is/are the advantage/s of buy-back:

(A) Free reserves which are utilized for buy-back instead of dividend enhance the
value of the company’s shares and improve earnings per share
(B) Surplus cash may be utilized by the company for buy-back and avoid the
payment of dividend tax
(C) Buy-back may be used as a weapon to frustrate any hostile take-over of the
company by undesirable persons
(D) All of the above

13. Provision is created for

(A) Unknown Liability
(B) Known Liability
(C) Creation of secret reserve
(D) None

14. If a company has contingent liability it appears in the

(A) Balance Sheet
(B) Director‘s Report
(C) Notes to accounts
(D) Chair man‘s Report

15. Which of the following is not a financial statement

(A) P & L A/c
(B) Balance Sheet
(C) Fund Flow Statement
(D) Trial Balance

16. Declaration of dividend is covered under section

(A) Sec 122
(B) Sec 123
(C) Sec 124
(D) Sec 125

17. Sundry Creditors for Goods or Services, and acceptances should be disclosed as part
of .
(A) Trade payable
(B) Trade receivable

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 (C) Non-current investments
(D) None of the above

18. Cash receipts from disposal of fixed assets is a/an

(A) Operating Activity
(B) Investing Activity
(C) Financing Activity
(D) None of the above

19. X Ltd. holds 51% of Y Ltd., Y Ltd. holds 51% of W Ltd., Z Ltd. holds 49% of W. Ltd. As per
AS 18, Related Parties are:
(A) X Ltd., Y Ltd. & W Ltd.
(B) X Ltd. & Z Ltd.
(C) Y Ltd. & Z Ltd.
(D) X Ltd. & Y Ltd. only

20. The fair value of Plan assets of A LTD. at beginning and end of the year 2015-2016
were Rs. 4,00,000 and Rs. 5,70,000 respectively. The employer's contribution to the
plan during the year was Rs. 1,40,000. If benefit payments to retirees were Rs. 1,00,000
what would be the actual return on plan assets (as per AS15) ?
(A) Rs. 1,50,000 lakhs
(B) Rs. 1,30,000 lakhs
(C) Rs. 1,20,000 lakhs
(D) Insufficient Information

21. General Ledger of a Banking Company does not contain

(A) Control Accounts of all personal ledgers
(B) Assets‗ Accounts
(C) Contra Accounts
(D) Balance Sheet

22. The Electricity Act, 2003 replaced which of the following three existing legislations?
(A) The Indian Electricity Act, 1910
(B) The Electricity (Supply) Act, 1948
(C) The Electricity Regulatory Commissions Act, 1998
(D) All of the above

23. Losses of theft are covered by insurance policies

(A) Burglary
(B) Fire
(C) Marine
(D) None of the above

24. Cash receipts from disposal of fixed assets is a cash flow from activity
(A) Operating
(B) Investing
(C) Financing
(D) None of the above

25. Which of the following is not a component of Cash Flow Statement?

(A) Cash payments to suppliers for goods and services
(B) Charging of Depreciation
(C) Cash advances and loans made to third parties
(D) Cash repayments of amounts borrowed

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26. Cost of Materials Consumed‖ will come in
(A) Profit and Loss Account
(B) Balance Sheet
(C) Bothe (A) & (B)
(D) None of the above

27. 10% Debenture will come under of Balance Sheet (Schedule III)
(A) Long term Borrowing
(B) Current Liabilities
(C) Non Current Assets
(D) Other current Liabilities

28. Which of the following is/are statutory book/s of a company

(A) Register of Charges
(B) Register of Members
(C) Register of Debenture holders
(D) All of the above

29. For which of the following Share Premium Account may be applied?
(A) issue of fully paid bonus shares to the members of the company
(B) writing off preliminary expenses of the company
(C) writing off the expenses of the commission paid or discount allowed on any issue
of shares or debentures of the company
(D) All of the above

30. Which of the following is not a source of Bonus issue of Shares?

(A) Free Reserves
(B) Securities Premium Account
(C) Capital Redemption Reserve Account
(D) Asset Revaluation Reserves

31. The term current asset doesn‘t cover

(A) Car
(B) Debtors
(C) Stock
(D) Prepaid expenses

32. Premium on redemption of redeemable preference shares can be paid out of?
(A) Capital Redemption Reserve account
(B) Existing shares premium account
(C) Proceed of fresh issue of shares
(D) All of the above

33. When shares are allotted, they will be credited to which account?
(A) Share Capital Account
(B) Share Allotment Account
(C) Share Application Account
(D) Share First and Final Call Account

34. While preparing Cash Flow Statement of XY Ltd., a finance company, interest
received on loans should be shown as
(A) Cash Flow from Operating Activities
(B) Cash Flow from Investing Activities
(C) Cash Flow from Financing Activities
(D) Cash and Cash Equivalent

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35. As per Schedule III Current Maturities of Long Term Borrowings should be shown under
(A) Current Assets in Balance Sheet
(B) Non-current Liability in Balance Sheet
(C) Current Liabilities in Balance Sheet
(D) Other Expenses in Statement of Profit and Loss

36. Which of the following is not a criterion for selecting a reportable segment under AS
17?
(A) 10% or more of aggregate revenue of all segment
(B) 10% or more of aggregate assets of all segment
(C) 10% or more of aggregate liabilities of all segment
(D) 10% or more of aggregate profit or loss of all segment (higher of the two)

37. Which of the following is not a mandatory financial statement of a General Insurance
Company as per IRDA regulations?
(A) Revenue Account
(B) Profit and Loss Account
(C) Balance Sheet
(D) Cash Flow Statement

38. A Banking Company needs to transfer a minimum of its profit to reserve fund.
(A) 10%
(B) 15%
(C) 20%
(D) 25%

39. In case of an electricity company, depreciation on assets is calculated based on the

rates notified by
(A) Companies Act 2013
(B) State Electricity Commission
(C) Central Electricity Regulatory Commission
(D) Income Tax Act 1961

40. The Electricity Act, 2003 replaced which of the following three existing legislations?
(A) The Indian Electricity Act, 1910
(B) The Electricity (Supply) Act, 1948
(C) The Electricity Regulatory Commissions Act, 1998
(D) All of the above

41. Which of the following is a principle of insurance?

(A) Principle of indemnity
(B) Insurable interest
(C) Principle of uberrimae fidei
(D) All of the above

42. Underwriting commission payable on the shares taken up by the promoters is

(A) 2.5%
(B) 2%
(C) 5%
(D) Nil

43. Which of the following reserves cannot be used for the purpose of issuing bonus
shares?
(A) Revaluation Reserve
(B) Dividend Equalization Reserve
(C) Capital Redemption Reserve
(D) General Reserve

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44. In Case of Life Insurance Business, Bonus may be of
(A) One type
(B) Two types
(C) Three types
(D) None of the above

45. Installment of principal amount of long term loan payable within next 12 months is
shown under Balance Sheet of a company under the heading
(A) Non current Assets
(B) Non current Liabilities
(C) Current Assets
(D) Current Liabilities

46. Which of the following is not a condition of buy-back of securities?

(A) Both fully and partly paid-up securities can be bought back
(B) Buy-back must be authorized by the Articles of Association
(C) Buy-back must be authorized by passing a special resolution in general meeting
(D) Buy-back should be completed within 1 year from the date of passing of special
resolution

47. A banking company is required to maintain---------- provision on unsecured portion

of doubtful advances
(A) 25%
(B) 40%
(C) 50%
(D) 100%

48. Which of the following is correct?

(A) Debenture carries a fixed rate of dividend
(B) A company limited by shares may issue irredeemable preference shares
(C) Unmarked applications are those applications that bear the stamp of the
underwriter
(D) Except as provided in Section 54, a company shall not issue shares at a discount

49. Profit on forfeiture and re-issue of equity shares is credited to

(A) Dividend Equalization Reserve
(B) General Reserve
(C) Capital Reserve
(D) Securities Premium

50. In a Balance Sheet prepared under Schedule III of Companies Act, 2013, 'Share
application money pending allotment' shall be shown
(A) under Shareholder's Fund
(B) under Non-current Liabilities
(C) under Current Liabilities
(D) as a separate line item.

51. In case of Cash Flow Statement prepared under Direct Method, decrease in current
liabilities is
(A) added to cash flow from operating activities
(B) deducted to cash flow from operating activities
(C) added to cash flow from investing activities
(D) None of the above

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52. For calculation of depreciation, Central Electricity Regulatory Commission has
recommended
(A) Straight Line Method
(B) Optimized Depreciated Replacement Cost Method
(C) Written Down Value Method
(D) Both (A) and (B)

53. In case of Electricity Company while calculating depreciation for the purpose of tariff
as per Regulation 21, the salvage value of the Asset shall be considered as
(A) 3%
(B) 5%
(C) 10%
(D) None of the above

54. As per Section 52 of Companies Act 2013, Securities Premium A/c cannot be used
(A) to issue fully paid up bonus shares
(B) to pay interim dividend
(C) to write off the discount on issue of debentures
(D) to write off the premium on redemption of preference shares

55. At present, a company can issue preference shares which are

(A) irredeemable
(B) redeemable after the expiry of 20 years from the date of issue
(C) redeemable before the expiry of 20 years from the date of issue
(D) redeemable after the expiry of 25 years from the date of issue

56. In case of purchase of assets under installment payment system, installments due
after 12 months from the reporting date are shown as
(A) Current liability
(B) Current assets
(C) Non-current liability
(D) Non-current assets

57. Bonus paid at the end along with the policy amount to the policy holders is called
(A) Production bonus
(B) Reversionary bonus
(C) Gratuitous bonus
(D) Maturity bonus

58. In relation to an Electricity Company the amount of security deposit = Load x Load
factor of the category in which the customer falls x Current tariff x .
(A) Billing cycle + 45 days
(B) Billing cycle + 30 days
(C) Billing cycle + 15 days
(D) Billing cycle + 20 days

59. In case of a Banking Company General Ledger does not contain

(A) Control Accounts of all personal ledger
(B) Assets Accounts
(C) Contra Accounts
(D) Revenue Accounts

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Answer Key:
(1) (B) Two types
(2) (B) AS 17
(3) (D) General Reserve
(4) (B) 40%
(5) (B) under Non-current Liability
(6) (C) Payment to suppliers of machinery
(7) (A) Trade Marks
(8) (A) International Accounting Standard Board
(9) (C) A part of Current Assets
(10) (D) All of the above
(11) (B) forfeit the shares
(12) (D) All of the above
(13) (A) Unknown Liability
(14) (C) Notes to accounts
(15) (D) Trial Balance
(16) (B) Sec 123
(17) (A) Trade payable
(18) (B) Investing Activity
(19) (A) X Ltd., Y Ltd. & W Ltd
(20) (B) Rs. 1,30,000 lakhs
(21) (D) Balance Sheet
(22) (D) All of the above
(23) (A) Burglary
(24) (B) Investing
(25) (B) Charging of Depreciation
(26) (A) Profit and Loss Account
(27) (A) Long term Borrowing
(28) (D) All of the above
(29) (D) All of the above
(30) (D) Asset Revaluation Reserves
(31) (A) Car
(32) (B) Existing shares premium account
(33) (A) Share Capital Account
(34) (A) Cash Flow from Operating Activities
(35) (C) Current Liabilities in Balance Sheet
(36) (C) 10% or more of aggregate liabilities of all segment
(37) (D) Cash Flow Statement
(38) (D) 25%
(39) (C) Central Electricity Regulatory Commission
(40) (D) All of the above
(41) (D) All of the above
(42) (D) Nil
(43) (A) Revaluation Reserve
(44) (C) Three types
(45) (D) Current Liabilities
(46) (A) Both fully and partly paid-up securities can be bought back
(47) (D) 100%
(48) (D) Except as provided in Section 54, a company shall not issue shares at a discount
(49) (C) Capital Reserve
(50) (D) as a separate line item
(51) (B) deducted to cash flow from operating activities
(52) (D) Both (A) and (B)
(53) (C) 10%
(54) (B) to pay interim dividend

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 (55) (C) redeemable before the expiry of 20 years from the date of issue
(56) (C) Non-current liability
(57) (B) Reversionary bonus
(58) (A) Billing cycle + 45 days
(59) (D) Revenue Accounts

The Institute of Cost Accountants of India 10

(II) Match the following in Column I with the appropriate in
Column II
1. Match the following:

Column I Column II
1. Grants received from Government A Capital Redemption Reserve
2. Redemption of Debentures B AS 15
3. Issue of Bonus Shares C AS 12
4. Defined benefit plans D Sinking Fund

2. Match the following:

Column I Column II
1. AS 16 A Employee Benefits
2. AS 19 B Borrowing costs
3. AS 12 C Accounting for Government Grants
4. AS 15 D Accounting for Leases

3. Match the following:

Column I Column II
1. Section 54 A Sweat Equity Shares
2. Section 68 B Power of company to purchase its own
security
3. Section 55 C Issue and Redemption of Preference Shares
4. Section 71 D Issue of Debentures

4. Match the following:

Column I Column II
1. Treatment of Voluntary A Capital Reserve
Retirement Scheme Payments
2. Balance of Forfeited Shares A/c B Amalgamation
3. Interest and Dividend Received C AS – 26
4. Pooling of Interest Method D AS – 15
5. Recognition of Intangible Asset E Investing activities of Cash Flow

5. Match the following:

Column I Column II
1. AS – 17 A Premium on issue of shares
2. Tax paid B Segmental Reporting
3. Capital Profit C Dividend unpaid
4. Contingent Liability D Revenue expenditure
5. Current Liability E Notes to account

6. Match the following:

Column I Column II
1. Defined Contribution Plans A AS – 20
2. Amalgamation in the nature of B Unearned finance income
merger
3. Diluted Potential Equity Shares C AS – 15

The Institute of Cost Accountants of India 11

 4. AS – 29 D Pooling of Interest Method
5. AS – 19 E Onerous Contract

7. Match the following:

Column I Column II
1. All costs associated with A AS – 26
amalgamation are capitalized
2. Accounting treatment of foreign B Purchase Method
currency transactions.
3. Guidance on internally C AS – 20
generated computer software
4. Provision for Restructuring Cost D AS – 11
5. Diluted Potential Equity Share E AS - 29

8. Match the following:

Column I Column II
1. Result of Transaction A AS – 9
2. Charged against profit B Current Liability
3. Bank overdraft C Event
4. Revenue Recognition D AS – 29
5. Provision and Contingents E Depreciation

9. Match the following:

Column I Column II
1. Long Term Liability A Preliminary Expenses
2. Fictitious Asset B Historical Cost
3. Unearned Income C Debenture
4. Asset Required D Liability
5. Accumulated Depreciation E Asset

10. Match the following:

Column I Column II
1. AS – 2 A Construction Contract
2. AS – 6 B Accounting for Fixed Assets
3. AS – 7 C Valuation of Inventory
4. AS – 9 D Depreciation Accounting
5. AS – 10 E Revenue Recognition

11. Match the following:

Column I Column II
1. Preliminary Expenses A Premium on issue of shares
2. Tax Paid B Deferred Revenue Expenditure
3. Capital Profit C Dividend unpaid
4. Contingent Liability D Revenue Expenditure
5. Current Liability E Notes to Account

12. Match the following:

Column I Column II
1. AS 16 A Export Credit Guarantee Corporation

The Institute of Cost Accountants of India 12

 2. Underwriting B Benefits provided in exchange for the
termination of employment.
3. Banking Service C Segment Revenue minus segment
expenses
4. Central Electricity Regulatory D Borrowing Cost
Commission
5. Termination Benefits E Two types
6. Segment Result F Automated Teller Machines (ATM)
7. Government Grants G Body Corporate
8. ECGC H Is Void
9. Issue of Shares at a Discount I Are available for distribution
10. Free Reserves J Assistance by Government in return for
compliance with conditions.

13. Match the following:

Column I Column II
1. Guaranteed Residual Value A Capital Reserve
(GRV)
2. Premium on Redemption of B AS 11
Preference Shares
3. Exchange Difference C Securities Premium A/c
4. Profit on reissue of forfeited D AS 19
shares

14. Match the following:

Column I Column II
1. Government Grants A Capital Redemption Reserve
2. Redemption of Debentures B AS 16
3. Un-guaranteed Residual Value C AS 12
4. Borrowing Cost D AS 19

15. Match the following:

Column I Column II
1. Functional Currency A Electricity Company
2. Surrender Value B AS 19
3. Service Line Development C AS 11
Charges
4. Contingent Rent D Insurance Company
E No match found

16. Match the following:

Column I Column II
1. Underwriting A Issue and Redemption of Preference
shares
2. Borrowing cost B Firm
3. Dividend and Interest C Qualifying Assets
4. Section 55 of Companies Act D Investing Activity
2013

The Institute of Cost Accountants of India 13

 17. Match the following:

Column I Column II
1. Contribution on actuarial basis A AS 17
for Gratuity benefits
2. Buy back of equity shares B AS 15
3. Capitalization of borrowing costs C Securities Premium a/c
4. Geographical segment D AS 16

Answer Key:
Ans: 1

i) C
ii) D
iii) A
iv) B

Ans: 2

(i) B
(ii) D
(iii) C
(iv) A

Ans: 3

(i) C
(ii) D
(iii) B
(iv) A

Ans: 4

(i) D
(ii) A
(iii) E
(iv) B
(v) C

Ans: 5

(i) B
(ii) D
(iii) A
(iv) E
(v) C

Ans: 6

(i) C
(ii) D
(iii) A
(iv) E
(v) B

The Institute of Cost Accountants of India 14

Ans: 7

(i) B
(ii) D
(iii) A
(iv) E
(v) C

Ans: 8

(i) C
(ii) E
(iii) B
(iv) A
(v) D

Ans: 9

(i) C
(ii) A
(iii) E
(iv) B
(v) D

Ans: 10

(i) C
(ii) D
(iii) A
(iv) E
(v) B

Ans: 11

(i) B
(ii) D
(iii) A
(iv) E
(v) C

Ans: 12

(i) D
(ii) E
(iii) F
(iv) G
(v) B
(vi) C
(vii) J
(viii) A
(ix) H
(x) I

Ans: 13

(i) D

The Institute of Cost Accountants of India 15

 (ii) C
(iii) B
(iv) A

Ans: 14

(i) C
(ii) A
(iii) D
(iv) B

Ans: 15

(i) C
(ii) D
(iii) A
(iv) B

Ans: 16

(i) B
(ii) C
(iii) D
(iv) A

Ans: 17

(i) B
(ii) C
(iii) D
(iv) A

The Institute of Cost Accountants of India 16

(III) State whether the following are 'True' or 'False'
1. Exchange difference arising in respect of monetary items is to be recognized as
income or expenditure during the year.
2. Capital Reserve is a Reserve which is available for distribution as Dividend.
3. Interest received by a finance company is a part of cash flow from investing
activities.
4. Interest accrued and due should be shown under the head Other Current Liabilities
in a Balance Sheet of a Company.
5. When the same risk and the same subject matter is insured with more than one
insurer the same is called reinsurance.
6. Part I of Schedule III is related to preparation of Profit and Loss Statement.
7. A company cannot buy-back its shares from any person through a negotiated deal
whether on or off the stock.
8. ODRC represents Optimised Depreciated Replaced Cost.
9. A company limited by shares shall issue any preference shares which are
irredeemable.
10. Schedule III deals only with presentation and disclosure requirements.
11. Interest income in case of a Finance Company is treated as a part of revenue from
Operation.
12. Non-performing assets bear a little amount of risk like normal risk and they do not
create any trouble regarding their realization.
13. A company can issue bonus shares even if its Articles does not authorise to do so.
14. In case of Forfeiture of Shares a shareholder is not able to pay the further calls and
returns his shares to the company for cancellation voluntarily.
15. Any surplus cash may be utilized by the company for buy-back and avoid the
payment of dividend tax.
16. Transfer to capital redemption reserve account is allowed from Dividend
Equalisation fund.
17. When debentures are issued at discount, it is prudent to write off the loss during the
life of debentures.
18. In order to spread the risk of under-subscription, the principal underwriters may enter
into subsidiary agreements with sub-leases.
19. Marked applications are those applications which bear the stamp of an underwriter.
20. Interest expenses are Finance Cost.
21. Qualifying asset is an asset that necessarily takes a substantial period of time to get
ready for its intended use or sale.
22. An issuance of stock following a company’s Initial Public Offer is called a Follow on
Public Offer.
23. In case of an underwriting arrangement, marked applications are those applications
that bear the stamp of the issuing company.
24. In case the leaseback is a finance lease, the sale proceeds in excess of the
carrying amount should be immediately recognized in the Income Statement.
25. Issue of fully paid up bonus shares increases the total shareholders fund.
26. Interest and dividend received form a part of financing cash flow.
27. As per Sec 2(43) of the Companies Act, 2013, "Free Reserves" mean such reserves
which, as per the latest audited balance sheet of a company, are available for
distribution as dividend.
28. After the allotment of shares, sometimes a shareholder is not able to pay the further
calls and returns his shares to the company for cancellation. Such voluntary return of
shares to the company by the shareholder himself is called Forfeiture of Shares.
29. A company with capital, which cannot be profitably employed, may get rid of it by
resorting to buy-back, and re-structure its capital and it is a disadvantage.
30. Issue of debentures as a collateral security means issue of debentures as a main
security, that is, a security in addition to the prime security.
31. Debenture carries a fixed rate of dividend.

The Institute of Cost Accountants of India 17

 32. ‘Unmarked’ applications are those applications which bear the stamp of an
underwriter.
33. The sum which is still to be paid to the Company for a share is known as calls in
arrears.
34. One of the conditions for issue of sweat equity shares is — not less than one year
has, at the date of such issue, elapsed since the date on which the company had
commenced business.
35. The value base for the purpose of depreciation for the purpose of Tariff as per
Regulation 21 shall be the historical cost of the asset.
36. Every banking company incorporated in India is required to transfer at least 15% of
its profit to the reserve fund.
37. A bank can maintain Cash reserve with itself or by way of a balance in the Current
account with the reserve bank or by way of net balance in current accounts or in
one or more of the aforesaid ways.
38. Every banking company is required to submit a return in the prescribed form and
manner to the Reserve Bank of India at the end of each calendar year of all
accounts in India which could not be operated for 5 years.
39. The Electricity Act, 2003 replaced four existing legislations.
40. The Central Electricity Regulatory Commission shall consist of a chairperson and 3
Members.
41. In case of Electricity Company, Balance of Security Deposit A/c at the end of the
accounting period should be disclosed as a Non-current liability in the Balance
Sheet.
42. The profit on forfeiture and re-issue of equity shares are credited to Capital
Redemption Reserve.
43. As per Companies Act 2013, companies are not permitted to buy back their own
shares out of securities premium.
44. Bonus is the share of profit which is payable by the insurance company to the
policyholders.
45. Interest on loan is included in ‘other operating expenses’ under the Statement of
Profit and Loss.
46. Buy-back of shares can also be made out of the proceeds of the earlier issues of the
same kind of shares.
47. Operating Lease is a lease which transfers substantially all the risks and rewards
incidental to ownership.
48. Machinery purchased by issuing shares is shown under Cash Flow from Investments
Activities in Cash Flow Statement.
49. Rollover must be with the written consent of the debenture holders.
50. Cash comprises cash in hand and foreign currency balances.
51. Minimum aggregate value of Paid-up Capital and Reserve in case of a Banking
Company incorporated outside India not having place(s) of business in the city of
Mumbai or Kolkata or both should be Rs. 15 lakhs.

The Institute of Cost Accountants of India 18

Answer Key:
1. True
2. False
3. False
4. True
5. False
6. True
7. True
8. True
9. False
10. True
11. True
12. False
13. False
14. False
15. True
16. True
17. True
18. False
19. True
20. True
21. True
22. True
23. False
24. False
25. False
26. False
27. True
28. False
29. False
30. True
31. False
32. False
33. True
34. True
35. True
36. False
37. True
38. False
39. False
40. True
41. True
42. False
43. False
44. True
45. False
46. False
47. False
48. False
49. True
50. True
51. True

The Institute of Cost Accountants of India 19