Corporate Accounting – Test Paper 1
Time : 1 Hr Max. Marks: 200
Each correct answer carries 4 marks while 1 mark will be deducted for each incorrect answer.
- The portion of the capital which can be called only at the time of winding up of the company is known as——-
(a) Uncalled capital
(b) Subscribed capital
(c) Reserve capital
(d) Nominal capital - Dividend is usually paid on :
(a) Issued Capital
(b) Paid-up Capital
(c) Called-up Capital
(d) Authorized Capital - Issue of equity shares for providing know-how or making available intellectual property rights is known as-
(a) Issue of bonus shares
(b) Issue of sweat shares
(c) Issue of rights shares
(d) Issue of convertible shares - X Ltd forfeited 2,000 shares of Rs 10 each called up Rs 8 per share due to Non-payment of call money of Rs. 3 per share, share forfeiture a/c will be credited by
(a) 10,000
(b) 16,000
(c) 6,000
(d) 20,000 - Dinesh Software Limited forfeited 200 shares of Rs 100 each (Rs. 60 called up) issued at par to Kareena on which she had paid Rs. 20 per share. Out of these, 150 shares were re-issued to Rajni for Rs. 45 per share as Rs. 60 paid up. Amount to be transferred to Capital reserve will be :
(a) Rs. 750
(b) Rs. 2,250
(c) Rs. 6,750
(d) Rs. 3,000 - If the ‘current stock price is Rs. 50 per share and 1 new right share has been offered, to investor holding 4 shares, at a subscription price of Rs. 45 per share, what will be the value of right?
(a) 1
(b) 2
(c) 6
(d) 4 - Shree Limited purchased a machine for Rs. 40,00,000, Payable as 25% in cash and balance by the issue of 8 % Debentures of Rs. 400 each at a premium of 20 %. How many debentures are issued to vendor?
(a) 6,250
(b) 6,500
(c) 6,750
(d) 7,000 - When all the debentures are redeemed, the balance in the debenture redemption fund account is transferred to:
(a) Profit and loss account
(b) Profit and loss appropriation account
(c) General reserve
(d) Capital reserve - Profit after tax for the year ending March 31, 2018 amounted to Rs. 5,40,000 which showed an increase of 50% over the profit after tax for the previous year. The profit after tax for the previous year amounted to :
(a) Rs. 3,50,000
(b) Rs. 3,40,000
(c) Rs. 3,60,000
(d) Rs. 3,30,000 - Which one of the following item is a Non Cash transaction
(a) Redemption of preference share
(b) Redemption of Debentures
(c) Conversion of Debentures into shares
(d) Purchases of Asset - During the year 2017-18, the Net Profit of a company is Rs. 7,00,000 after incorporating the following:
Gain on sale of Non-current Investment Rs.1,00,000
Premium on Redemption of preference shares Rs.15,000
Depreciation of Furniture and Fixtures Rs.2,00,000
Patents written off Rs. 3,00,000
Loss on sale of Fixed Assets Rs. 4,00,000
The net inflow of cash operating activities will be :
(a) Rs. 9,15,000
(b) Rs. 15,15,000
(c) Rs. 7,00,000
(d) Rs. 5,95,000 - Which one is not the purpose (objective) of analysis of financial statements ?
(a) To assess the current profitability and operational efficiency of the firm
(b) To judge the ability of the firm to repay its debt
(c) To show financial position through balance sheet and profitability through profit & loss account
(d) To identify the reasons for change in the profitability / financial position of the firm - Analysis of comparative financial statements include :
(a) Common Size Statements
(b) Cash Flow Analysis
(c) Trend Analysis
(d) Horizontal Analysis - Which one is true?
(a) Financial statements reflect current situation
(b) Assets shown in the balance sheet reflect expired cost
(c) Balance sheets disclose information relating to loss of markets
(d) Financial statements do not contain qualitative information - Cash collected from Debtors would be deemed as————–
(a) Source of funds
(b) Application of funds
(c) Increase of funds
(d) No flow of funds - ‘Fund Flow Statement’ is a study of
(a) Change in Profitability
(b) Change in Investments
(c) Change in Working Capital
(d) Change in Cash Position - Ram Ltd has a current Ratio 4.5:1 and Quick Ratio 3:1. If its inventory is Rs. 72,000. Calculate Current Liabilities
(a) Rs. 2,16,000
(b) Rs. 73000
(c) Rs. 48,000
(d) Rs. 84,000 - Which among the following methods is essentially an integrated ratio analysis?
(a) BCG Matrix Analysis
(b) Trial Balance Analysis
(c) DuPont Analysis
(d) Cash Flow Analysis - A company has share-holder’s equity of Rs. 2,00,000/Total Assets are 60% of share holder’s equity assets, turnover Ratio 4 times, Inventory Turnover is 6 times. Calculate amount of Inventory.
(a) Rs. 4,80,000
(b) Rs. 8,00,000
(c) Rs. 80,000
(d) Rs. 6,00,000 - Which of the following is not a mode of liquidation of a company?
(a) Compulsory winding –up by the court
(b) Voluntary winding-up by the members
(c) Winding-up under the supervision of Court
(d) Winding-up by the Directors - ABC Ltd. buys 77% of available shares (ownership) of XYZ Corp. Which of the following can be said about XYZ Corp.?
(a) It is no longer a company
(b) It is a holding company
(c) It is an independent company
(d) It is a subsidiary company - Which of the following statements is correct?
(a) Merger does not form a part of Amalgamation
(b) Under no circumstances, Amalgamation leads to liquidation of an existing company
(c) Amalgamation includes Absorption
(d) Internal Reconstruction is an integral part of Amalgamation - Methods of Accounting for Amalgamation of companies are/is
(a) The Pooling of Interest Methods
(b) The Purchase Method
(c) Both (The Pooling of Interest Methods) and (The Purchase Method)
(d) None of these - When two or more than two companies Liquidate to form a new company, it is called
(a) Amalgamation of Companies
(b) Absorption of Companies
(c) Internal Reconstruction of company
(d) Purchase of Business. - The time interval between date of preparing balance sheet of holding company and subsidiary company
(a) Up-to 1 year
(b) Not more than 6 Months
(c) More than 6 months
(d) More than 1 year