Dr. Ambedkar College Wadala | Home



Dr. Ambedkar College of Commerce & Economics, Wadala, Mumbai. Financial Accounting - Sem- VI(75 : 25 Marks)M.C.Q.s Marks: 50N. B.:- Q.NO.1 to 30 carry1 marks each and Q. No. 31 to 40 carry 2 marks eachA company can buy-backEquity Shares (c) Both the abovePreference Shares (d) None of the aboveEquity shares can be bought backOut of profits onlyOut of proceeds of fresh issue onlyOut of capital profit onlyIts free reserves; or the securities premium If equity shares have been bought back out of free reserves, amount equal to the face value of equity shares bought back should be transferred to Development Rebate Reserve (c) General Reserve General Reserve (d) Capital Redemption ReserveA company may purchase its own shares out of –Its free reserves only (c) The proceeds of any shares onlyThe securities premium account only (d) all of the aboveWhich of the following is not a ‘free reserve’ for the purchase of buyback of sharesProfit & Loss Account (c) Dividend Equalisation Reserve General Reserve (d) Revaluation ReserveWhich of the following is a ‘free reserve’ for the purchase of buyback of sharesWorkmen’s Compensation Fund (after meeting liabilities)Capital Redemption Reserve balance b/dDebenture Redemption ReserveShares Forfeited AccountOn buyback of shares, there is a reduction in the share capital to the extent of theMarket value of the shares bought backFace value of the shares bought backCalled-up value of the shares bought backUn-paid value of the shares bought backThe buy-back of equity shares in any financial year shall not exceed twenty-five per cent of its totalAuthorized capital in that financial yearPaid-up equity capital in that financial yearPaid-up capital and free reserves in that financial yearCalled-up capital in that financial yearWhich of the following is the ratio for exchange of two currencies __________.a) Closing Rateb) Average ratec) Exchange rated) opening rate10. Currency used in presenting the financial statements is _____________. a) Reporting currencyb) Official currency c) Indian Rupeesd) Foreign currency11. The mean of Exchange rates in force during a period is known as ________.a) Average rateb) Closing ratec) Reporting rated) fair rate12. Accounting transactions of foreign currency is governed by _______.a) AS 10b) AS 11c) AS 13d) AS 1413. Foreign currency is a currency ________________.a) Used in recording foreign transaction b) Used in presenting foreign financial statementsc) Other than reporting currency of an enterprise d) Other than Indian Rupees.14) If shares are bought back out of free reserves then a sum equal to nominal value of the shares so bought back is transferred to: a) Capital reserve account b) Capital redemption reserve account (CRR) c) General reserve account d) Statutory reserve account 15) Maximum buy back limit in any year is ______ of total paid up equity capital and free reserves. a) 25% b) 10% c) 20% d) No limit16) Bonus shares are issued out of ………………………………………………. a. capital reserve b. free reserve c. share premium d. none of these 17) Right shares are issued to ………………….. share holders a. previous b. existing c. future d. None of these 18) Capital profit must be transferred to__________. (a) Capital reserve a/c (b) Realisation a/c(c) Profit & loss a/c (d) Revaluation a/c 19) Under profit prior incorporation, gross profit is allocated based on_________ratio. (a) Time (b) Sales (c) Weight (d) Purchase 20) When expenses remain constant overall the financial year the they can be divided in__________. (a) Time ratio (b) Sales ratio (c) Purchase ratio (d) none of the above 21) after the incorporation of a company all profits or losses are transferred to_____a/c.(a) Trading (b) Revaluation (c) profit & loss appropriation (d) Realisation 22) profit before incorporation is of a) capital nature b) revenue nature c)both capital and revenue nature d) general reserves 23) profit prior to incorporation is a. credited to capital reserve b) debited to goodwill c. profit & loss statement d) general reserve24. Following are the factors affecting goodwill except: (a) Nature of business (b) Efficiency of management (c) Technical know how (d) Location of the customers25. Weighted average method of calculating goodwill should be followed when: (a) Profits are uneven (b) Profits has increasing trend (c) Profits has decreasing trend (d) Either ‘b’ or ‘c’ 27. Under super profit basis goodwill is calculated by : (a) No. of years purchased multiplied will average profits. (b) No. of years purchased multiplied with super profits (c) Summation of the discounted value of expected future benefits (d) Super profit divided with expected rate of return28. The word ………… literally means to work together or act together. a) Organization b) Companyc) Co-operation d) Association29. NCHF stands for -----a) National Cooperative Housing Federation of India b) National Credit Housing Federation c) National Consumer Housing Federation d) National cooperative Housing Finance30.The Co-operative Societies Act? was passed in?India?in the year(a)???1904(b)???1912(c)????1919(d)???194931.The profits and losses for the last years are 2016-17. Losses 10,000; 2017-18 Losses 2,500; 2018-19 Profits 98,000 & 2019-20 Profits 76,000. The average capital employed in the business is 2,00,000. The rate of interest expected from capital invested is 12%. The remuneration of partners is estimated to be 1,000 per month. Calculate the value of goodwill on the basis of two years purchase of super profits based on the average of four years. (a) 9,000 (b) 8,750 (c) 8,500 (d) 8,250 32. The profits of last five years are 1,70,000; 1,80,000; 1,40,000; 2,00,000 and 1,60,000. Find the value of goodwill, if it is calculated on average profits of last five year on the basis of three year’s purchase. (a) 1,70,000 (b) 5,10,000 (c) 5,30,000 (d) 5,70,000 33. The profits for the last three years are 40,000; 2018-19 Profits 60,000 & 2019-20 Profits 66,500. The total liabilities of the firm are 10,00,000 of which outsiders liabilities is 5,42,500. The rate of interest expected from capital invested is 10%. The value of goodwill on capitalization basis of super profit: (a) 97,000 (b) 97,250 (c) 97,500 (d) 97,750 34. The capital of B and D are 90,000 and 30,000 respectively with the profit sharing ratio 3 : 1. The new ratio, admissible after 1.4.2006 is 5 : 3. The goodwill is valued 80,000 as on that date. Amount payable by a gaining partner to a scarifieing partner is: (a) B will pay to D 10,000 (b) D will pay to B 10,000 (c) B will pay to D 80,000 (d) D will pay to B 80,000 35. The profits for 2017-2018 are 4,000; for 2018-2019 is 52,200 and for 2019-2020 is 62,400. Closing stock for 2018-2019 and 2019-2020 includes the defective items of 4,400 and 12,400 respectively which were considered as having market value Nil. The value of goodwill on average profit method is: (a) 47,400 (b) 35,400 (c) 27,400 (d) 34,60036. On 1st January, 2018; XYZ Ltd. invoiced goods to its USA client for $ 10.000 payment was received on 1st March, 2018. The exchange rate was: 1st January 2018: $ 1 = Rs. 39. 1st March, 2018: $ 1 = Rs.40 .The amount of difference in exchange transferred to Profit & Loss Account is ___.Rs. 20,000c) Rs.10,000Rs. 15,000d)Rs. 25,00037. Under annuity basis goodwill is calculated by : (a) No. of years purchased multiplied with average profits (b) No. of years purchased multiplied with super profits (c) Summation of the discounted value of expected future benefits (d) Super profit divided with expected rate of return38. On 1st January, 2017 A Ltd. purchased goods with 2,000$ on 30th March, 2017. A made the payment. The exchange rate on 1/1/2017 is Rs. 49.00 and on 30/3/2017 Rs. 47.60. The amount transferred to Profit & Loss A/c. _____P & L A/c– Debit side Rs.2,800c) P & L A/c- Credit side Rs.2,800P & L A/c- Debit side Rs.5,600d) P & L A/c- Credit side Rs.5,60039. A long-term loan was obtained from Z Ltd Rs. 20, 00,000 which was recorded at $ 1 = Rs. 36.20, the rate on the date of the transaction. The exchange rate on the Balance Sheet date was $ 1 = Rs. 37.40. The loss due to exchange difference is _____.Rs. 66,298c) Rs. 66,000Rs. 65,000d) Rs. 85,00040. Under average profit basis goodwill is calculated by : (a) No. of years purchased multiplied with average profits (b) No. of years purchased multiplied with super profits (c) Summation of the discounted value of expected future benefits (d) Super profit divided with expected rate of return ------------------------------------------------------------------------------------------------------------ ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download