1. For Events which are indicative of conditions that arose
after the Reporting Period, an Entity shall - (A) adjust the amounts recognised in Financial Statements (B) not adjust the amounts recognised in its Financial Statements (C) disclosed in the Approving Authority's Report, whether material or not (D) disclosed in the Financial Statements, whether material or not
2. Under Asset Cost Reduction Method, Entry for Refund -
(A) Deferred Grant A/c To Cash 12 Lakhs (B) Fixed Assets A/c To Cash 12 Lakhs (C) P&L A/c To Cash 12 Lakhs (D) Fixed Assets A/c To Cash 8 Lakhs
3. In case of Profit making companies, condition for diluted
4. HILL LTD has provided depreciation in accounts for ` 80 lakh,
but as per tax records it is ` 120 Lakh. Unamortized preliminary expenses, as per tax records is ` 40,000. There is adequate evidence of future Profit sufficiently. Tax rate is 30%. How much deferred tax assets/liability should be recognized as per AS 22? (A) ` 12.00 Lakh (B) ` 11.88 Lakh (C) ` 5.94 Lakh (D) Nil
5. Significant Changes with adverse effect on the Entity have
taken place during the period, or are expected to take place in the near future, in the extent to which, or manner in which, an Asset is used or is expected to be used. This is - (A) External Sources of Information for Impairment (B) Internal Sources of Information for Impairment (C) Not at all an Indicator for Impairment (D) None of the above
6. Upward Revaluation for First Time is accounted as under -
(a) Increase is recognised in OCI, and accumulated in Equity under the heading "Revaluation Surplus". (b) Credit to P&L to the extent of Reversal of previous downward revaluation. Credit the remaining portion to "Revaluation Surplus". (c) Recognised (i.e. debited), in Profit or Loss. (d) Recognised in OCI, to the extent of any Credit Balance in Revaluation Surplus in respect of that Asset, and reduces the amount accumulated in Equity under "Revaluation Surplus". Debit the remaining portion to Profit or Loss.
7. Which of the following will have long term effect?
(A) Changes in Accounting Policy (B) Changes in Accounting Estimates (C) Exceptional Activities (D) Prior Period Items
8. When the Revaluation Surplus is realised, the Cumulative
Revaluation Surplus included in Equity may be - (a) Reclassified to P&L (b) transferred directly to Retained Earnings. (c) Reclassified to OCI (d) Any of the above
9. If Total External Revenue reported by Segments constitutes
________ of the Entity's Revenue, additional Segments should be identified as Reportable Segments. (A) less than 75% (B) 75% or less (C) less than 90% (D) 90% or less
10. A Holding Company entered into business transactions
with its Subsidiary during a FY. The Holding Company divested its holding in Subsidiary before 31st March & as such no Related Party Relationship existed at the end of year. (A) It needs to disclose only those transactions which happened during the existence of relationship. (B) It needs to disclose all the transactions which happened during the reporting period. (C) It needs to disclose the nature of relationship even if there is no transactions during the reporting period. (D) Both (b) & (c)
11. Cash & Cash Equivalents presented in Statement of Cash
Flows and in the Balance Sheet - (A) always be equal (B) need not be equal (C) Cash & Cash Equivalents presented in Statement of Cash Flows should be more (D) Cash & Cash Equivalents presented in Statement of Cash Flows should be less 12. An Entity following mercantile system has Interest Receivable for X 25,000. However, in Income Tax, Interest Income is taxed on cash basis. In Year 1, it will rise to - (A) Originating Timing Difference of 25,000 (B) Reversing Timing Difference of 25,000 (C) Permanent Difference of 25,000 (D) Temporary Difference of 25,000
13. Features of Contingent Liability exclude -
(A) The term "Contingent Liability" is used for Liabilities which do not meet the Recognition Criteria in Para 14. (B) Contingent Liabilities are not recognised, they are only disclosed. (C) Existence of the Liability will be confirmed only on the occurrence or non-occurrence of one or more future events wholly within the control of the Entity. (D) None of the above
Progress Billings = Positive means - A. Amount due from customers B. Amount due to customers C. Any of the above D. Both of the above 15. A Government grant relating to Assets that becomes repayable shall be accounted - (A) Increase the Carrying Amount of the Asset, by the Grant repayable. Recognise immediately in P&L, the Cumulative Additional Depreciation that would have been recognised in Profit or Loss to date in the absence of the Grant. (B) Reduce the Deferred Income balance by the amount repayable. (C) Either of the above (D) Neither of the above
16. Information about the segment shall be reported
separately even if it no longer meets the 10% thresholds, when - (A) Management judges that an Segment is of continuing significance (b) Management judges that an Segment identified as a Reportable Segment in the immediately preceding period is of continuing significance (C) Both of the above (D) None of the above
17. The Entity is disposing of piecemeal, as part of a single co-
ordinated plan, of a separate major line of business or geographical area of operations is called as - (A) Component of an Entity (B) Disposal Group (C) Cash Generating Unit (D) Discontinuing Operation
18. Ram Ltd has a PPE measured on a Revaluation Model. Now
the Entity wants to apply Cost Model, instead of Revaluation Model. This is - (A) Change in Accounting Policy. (B) Not a Change in Accounting Policy. (C) Not a Change in Accounting Estimate. (D) Change in Accounting Estimate.
19. Maternity or Paternity Leave is -
(A) Vesting Absences (B) Non Vesting Absences (C) Accumulating Absences (D) Non Accumulating Absences
20. Cost of Machinery is ` 1,00,000. Depreciation for
Accounting purpose is at 10% on SLM basis. Depreciation as per Tax Law @ 30% on WDV basis. It will rise to - (A) Originating Timing Difference of 20,000 (B) Reversing Timing Difference of 20,000 (C) Permanent Difference of 20,000 (D) Temporary Difference of 20,000
21. As per AS 28, an Entity should assess whether there is any
indication that an asset may be impaired - (A) at any time during the reporting period (B) at the end of each reporting period (C) Regularly (D) Once in 3 to 5 Years
22. ABC Ltd prepared Interim Financial Report for the Quarter ending June 30. The Interim Financial Report was approved for issue by the Board of Directors on July 15. In this case - (A) AS 4 is not applicable (B) AS 25 specifically states that AS 4 is not applicable (C) AS 4 is partially applicable (D) AS 4 is applicable
23. Northern Ltd. took a bank loan of ` 125 lakh to finance the purchase of a plant of ` 160 lakh at an interest of 15% per annum on 30.09.2012. The plant was ready for use on 31.01.2013; however it was put to use only on 01.04.2013. What amount of finance cost will be added to find out the original cost of the plant? (A) ` 6.25 lakh (B) ` 9.375 lakh (C) ` 18.75 lakh (D) ` 8.00 lakh
24. As per AS 19, there are___types of Leases &_______types
25. Rishaba Ltd reported a PBT of ` 4 Lakhs for the quarter
ending 30th September after recognizing ` 2 Lakhs Unusual Gain received in this quarter was allocated equally to this and next quarters. Adjustment required - (A) Add 4 Lakh (B) Add 1 Lakh (C) Deduct 1 Lakh (D) No Adjustment Required
26. X Ltd entered into a contract to supply 1000 television sets
for ` 2 Million. An increase in the cost of inputs has resulted into an increase in the cost of sales to ` 2.5 Million. Penalty for non-performance is expected to be ` 0.25 Million. As per AS 29, this is a type of - (A) Throughput Contract (B) Onerous Contract (C) Executory Contract (D) None of the above
27. Enterprise's monetary items are restated at rates different
from - (A) those at which they were initially recorded during the period (B) those reported in previous Financial Statements (C) Both of the above (D) None of the above
28. A Company installs Solar Panels to supply solar electricity
to its manufacturing plant. Cost of Panels is ` 1,00,00,000 with a useful life of 10 years. Depreciation is provided on SLM basis. The Government gives ` 50,00,000 as a Subsidy. Depreciable Value under Cost Reduction Method = (A) 100 Lakhs (B) 50 Lakhs (C) 5 Lakhs (D) 95 Lakhs
29. Demographic Assumptions deal with matters like -
(A) mortality, both during and after employment, (B) rates of employee turnover, disability and early retirement, (C) proportion of plan members with dependants who will be eligible for benefits, and (D) All of the above
incidental to ownership belong wholly to the Lessor. (a) Non-Cancellable Lease (b) Cancellable Lease (C) Finance Lease (D) Operating Lease
31. A Company was having its production plant in Location X,
to avail backward area related tax benefits. To achieve economies of scale, the Company wishes to shift to Location Y. It is - (A) Not a Discontinuing Operation (B) Discontinuing Operation (C) Disposal Group (D) Assets Held for Sale
32. Fraud related to 2018-2019 discovered after the end of the
reporting period but before the date of approval of Financial Statements for 2020-2021. This event is - (A) Adjusting Event. However, there is no condition existed on the Reporting date. (B) Adjusting Event as there exists condition on the Reporting date. (C) Non Adjusting Event as there is no condition existed on the Reporting date. (D) Non Adjusting Event as the event is favourable to the Company.
33. X Ltd. manufactures a product and details of costs are as
under: Raw material — ` 4,00,000 Direct labour — ` 2,50,000 Variable production overheads — ` 1,50,000 Fixed production overheads — ` 2,90,000(including interest — ` 1,00,000) Normal production capacity is 55,000 units. At the year end closing stock was 2,500 units. Compute the value of closing stock. (A) ` 45,000 (B) ` 40,000 (C) ` 55,000 (D) ` 50,000 The Net Profit Before Tax of Mitra Ltd was ` 100 Lakhs and the Income Tax Rate was 37%. The Company's Preference Share Capital has the following classes -12% Non CumulativePreference Share Capital 10% Cumulative Preference Share Capital In its accounts, Mitra Ltd has declared / paid following dividends on Preference Capital: On Non Cumulative Preference Shares - fully declared for the current year.On Cumulative Preference Shares - for the past three years. Assume Dividend Distribution Tax at 17% and that the Company transferred ` 5 Lakhs to General Reserve. You are required to calculate the Net Profit for the period, attributable to Equity Shareholders. .
36.. Net Profit for the period attributable to Equity
Shareholders = (A) 26.41 Lakhs (B) 31.41 Lakhs (C) 12.41 Lakhs (D) 1.41 Lakhs 37. Mahesh Ltd's accounting year ends on 31st March. One of its Subsidiaries has declared dividend in April 2021, in respect of its accounting year ending 30th November 2020. Mahesh Ltd is to receive a dividend of ` 10,000. Dividend can be recognised by Mahesh Ltd in its accounts for the year ended 31st March - (A) 2020 (B) 2021 (C) Either of the above (D) Not recognised
38. Which of the following are Bearer Plants?
(a) Plants cultivated to be harvested as Agricultural Produce (e.g. Trees grown for use as lumber), (b) Plants cultivated to produce Agricultural Produce when there is more than a remote likelihood that the Entity will also harvest and sell the plant as Agricultural Produce, other than as incidental scrap sales (e.g. Trees that are cultivated both for their fruit and their lumber), and (c) Annual Crops (e.g. Maize and Wheat). (d) Plants no longer used to bear Produce were sold for use as Firewood
39. Accounting Software purchased additionally and installed
on a Computer Hardware. In this case - (A) Since Accounting Software is integral part of the computer itself and should be capitalised as PPE. (B) Accounting Software on a Computer Hardware is recognised separately as Intangible Asset. (C) Since Accounting Software is integral part of the computer itself and should be recognised as Expenses in P&L. (D) Accounting Software on a Computer Hardware is recognised as PPE.
40. As per AS-28, Impairment loss means:
(A) Value iri use of the asset—Net selling price (B) Carrying amount of the asset—Recoverable amount (C) Recoverable amount of the asset—Net selling price (D) Book value of the asset—Net selling price
41. Changes in Accounting Estimates result from -
(A) new information (B) new developments (C) Change in the base from which it is estimated (D) Any of the abov
43. Mohini Ltd has 3 Segments namely X, Y, Z. The Total Assets
of the Company are ` 10.00 Crores. Segment X has ` 2 Crores, Segment Y has ` 3 Crores and Segment Z has Crores. The Accountant contends that all the three Segments are Reportable Segments. In this case - (A) X & Y segments are Reportable Segments. (B) Y & Z segments are Reportable Segments. (C) Z segmentis a Reportable Segment. (D) All segments are Reportable Segments.
44. As per AS-22, a Deferred tax Asset should be recognized
only when there is certainty of future taxable income to realize. This is based on the consideration of - (A) Prudence (B) Conservation (C) Caution (D) Consistency
45. Company presents Cash Flow Statement as at 30.09.2022
(Quarterly). It should also present- (A) Cash Flow Statement as at 30.09.2021 (Half-Yearly) (B) Cash Flow Statement as at 30.09.2021 (Quarterly) (C) Cash -Flow Statement as at 30.09.2022 (Half-Yearly) (D) All of the above
46. Which of the following will be considered as financing
transaction? (A) Bill & Hold (B) Sale with right to return (C) Sale and repurchase of goods (D) Consignment
47. Gowri Shankar Ltd purchased a special machinery on 1st
April of a Financial Year, for ` 25 Lakhs. It received a Government Grant for 20% of the Price. The machine has an effective life of 10 years. Income credited to P&L p.a.= (A) Nil (B) 0.5 Lakhs (C) Either of the above (D) 5 Lakhs
48. Bank Overdraft which are repayable on demand should be
- (A) included in Cash & Cash Equivalents in Cash Flow Statements as well as the Balance Sheet (B) included in C&CE in Cash Flow Statements. It will be included within Liabilities in the Balance Sheet. (C) included in C&CE in the Balance Sheet. It will be included within Liabilities in Cash Flow Statements. (D) included in Financing Activities in Cash Flow Statements. It will be included in Liabilities in Balance Sheet.
49. X Ltd. bought a trademark on 1st January, 2014 from Y Ltd.
for ` 10,00,000. An independent consultant retained by X Ltd. estimated the trademark's remaining life to be 15 years. Its unamortised cost in the books of Y Ltd. was ` 8,50,000. X Ltd. decided to amortize the trademark over the maximum period allowed. What amount should be reported as amortization expense in the Balance Sheet of X Ltd. as on 31st December, 2014 as per AS-26? (A) ` 15,000 (B) ` 20,00,000 (C) ` 1,00,000 (D) ` 50,000 50. Achyut Ltd sold machinery having a WDV of ` 40 Lakhs to Balram Ltd for ` 50 Lakhs and the same machinery was leased back by Balram Ltd to Achyut Ltd . The Lease back is Operating Lease.If Sale Price of ` 50 Lakhs is equal to Fair Value, then - (a) Profit of ` 10 Lakhs should be recognised immediately. (b) Loss of ` 2 Lakhs should be immediately recognized, provided such loss is not compensated by future lease payment. (c) Profit of ` 10 Lakhs should be deferred and amortized over the lease period. (d) Profit of ` 6 Lakhs should to be immediately recognized, and balance Profit of ` 4 Lakhs should be amortised / deferred over lease period.
