T.Y B.COM
SEMESTER - 6
FINANCIAL REPORTING
(FR)
MCQS - FEBRUARY 2017
1. Segment reporting helps users of financial statements to better
A. understand performance of the enterprise
B. assess risks and returns of the enterprise
C. to make more informed judgments of the enterprise as a whole
D. All A, B and C
2. Potential equity shares includes:
A. Convertible debentures
B. convertible preference shares
C. Share warrants
D. All A, B and C
3. When segment is made on the basis of products or services which are exposed to different risk & return then it is known as
A. Product segment
B. Business segment
C. Market segment
D. Geographical segment
4. When is potential equity shares said to be dilutive?
A. When their conversion to equity shares would increase net profit per share
B. When their conversion to equity shares would & Grease earnings per share
C. When their conversion to equity shares would increase loss per share
D. None of A, B and C
5. Under 'Defined Contribution Plan' , fixed contribution paid by the employer towards the Post Employment Benefit Plan of the employee is recognized as:
A. An Asset
B. An Expense
C. A Liability
D. None of A, B and C
6. If a company has more than one potential equity share _________ should be calculated separately for each potential equity shares.
A. Revised Profit
B. Basic EPS
C. Incremental EPS
D. Revised WANES
7. Financial assumptions deal with items such as
A. Discount rate
B. Future salary and benefit levels
C. Expected rate of return on plan assets
D. All A ,B and C
8. _________ arises when an enterprise introduces a defined benefit plan or changes in the benefits payable under an existing defined benefit plan.
A. Current service cost
B. Interest cost
C. Actuarial gains and losses
D. Past service cost
9. Expected return on plan assets is Rs,25,00,000 and actual return on plan assets is Rs. 23,49,540. The difference between expected return and actual return is _________
A. Actuarial gain Rs.5,01,460
B. Actuarial gain Rs.1,50,460
C. Actuarial loss Rs.1,50,460
D. Actuarial loss Rs.5,01,460
10. Segment assets does not include:
A. Tangible fixed assets
B. Current assets
C. Intangible fixed assets
D. income-tax assets
11. ABC Limited presents interim financial report quarterly. On 01.04.2015, the company had carried forward loss of Rs.800 lakhs for income tax purpose for which deferred tax asset has hot been recognized. The company earns. Rs.1,000 lakhs in each for quarter ending on 30.06.2015, 30.09.2015, 31.12.2015 and 31.03.2016 excluding the loss carried forward. If income tax rate if 30%, the amount of tax expense to be reported in each quarter would be Rs. _______ lakhs.
A. 960
B. 240
C. 1,200
D. 300
12. In the II quarter, a company changed depreciation method from WDV to SLM, which resulted in excess depreciation of Rs. 16 lakhs. The entire amount has been debited in the Il quarter, though the share of the II quarter is only Rs.4 lakhs. Give the treatment required under AS -25:
A. No change is required to the profit
B. Add Rs.12 lakhs to profit as adjustment required for change in depreciation method
C. Less Rs.16 lakhs from profit as adjustment required for change in depreciation method;
D. Less Rs.12 lakhs from profit as adjustment required for change in depreciation method
13. Interim financial reporting is the reporting for a _________.
A. Period for three months
B. Period for six months
C. Period of full financial year
D. Period shorter than full financial year
14. Sara Ltd. is dealing in the seasonal product, as per discrete view while preparing quarterly interim financial report expenses should be recognized
A. Fully in the quarter in which they occur
B. In proportion to seasonal revenue of each quarter
C. In equal proportion to each quarter
D. In proportion of profit of each quarter
15. To measure obligation under defined benefits plan, the discount rate should be determined by reference to ________.
A. market yield on government bonds at the beginning of the year
B. market yield on government bonds at the balance sheet date
C. Higher of (A) or (B) above
D. Lower of (A) or (B) above
16. If risk and returns of a company is mainly affected both by difference in product/services it produces and its operations in different geographical area, then the secondary reportable segment is _______.
A. Business segment
B. Product segment
C. Market segment
D. Geographical segment
17. If the segment revenue of segment A, B, C & D are Rs.1,80,000, Rs. 3,90,000, Rs.60,000 & Rs 40,00 respectively then the reportable segments are __________.
A. A & B
B. A, B & C
C. A, B, C & D
D. B
18. Segment revenue includes __________.
A. Extraordinary items
B. Gain on sales of investment
C. Revenue from transactions with other segments
D. All A, B & C
19. Which are the responsible segments based on the segments result given as under?
|
Particulars |
Segments A |
Segments B |
Segments C |
Segments D |
|
Segment Result |
Rs. 50,000 |
Rs. (-) 40,000 |
Rs. 6,000 |
Rs. (-) 5,000 |
A. A & B
B. A, B & C
C. A, B, C & D
D. A & C
20. What is the minimum percentage of total external revenue of the enterprise which should be there in the reportable segments?
A. 10%
B. 50%
C. 60%
D. 75%
21. Which one of the following is not a short term employee benefit?
A. Salaries and Wages
B. Pension
C. Medical facility
D. Bonus
22. An enterprise should estimate provisions in respect of gratuity on
________ basis as per AS - 25.
.
A. Annual
B. Quarterly
C. Year to date
D. None of A, B & C
23. Retail Ltd. 7200 equity shares outstanding as on 01.01.2016. On 31st May 2016 it issued 2400 equity shares for cash. On 01.11.2016 it bought back 1200 equity shares. The weighted number of shares as on 31st December 2016 are:
A. 6750
B. 8400
C. 8900
D. 5400
24. Earnings per share gives the information regarding earnings available to each _________.
A. Equity shares
B. Preference shares
C. Both (A) & (B)
D. Debentures
25. Saral Ltd. had the following number of equity shares outstanding as on 31st March 2016:
40,00,000 equity shares of Rs.10 each fully paid up & 20,00,000 equity shares of Rs.10 each, Rs.5 paid up. The company's profit after tax for the year ended on 31.03.2016. Net profit for 2016 was 6,00,000. Calculate basic EPS.
A. Rs.46. 66
B. Rs.56
C. Rs.70
D. None of A, B & C
26. H Ltd. has 2,00,000 equity shares outstanding as on 1.10.2016. On 1.10.2016 it issued 2 equity shares as bonus for each shares outstanding on 30.9.2016. Net profit for 2016 was 6,00,000. Calculate basic EPS.
A. Rs.3
B. Rs.0.33
C. Rs.1
D. None of A, B & C
27. SMV Ltd. has Rs. 8,50,000 net income for the quarter ended 31.12.2016, which includes Rs,30,000 provision for bad and doubtful debts. Out of this Rs.20,000 provision relates to second quarter due to wrong estimate in the second quarter. What is the profit for the quarter ended 31.12.2016 as per the Accounting Standard-25?
A. Rs.8,30,000
B. Rs.8,40,000
C. Rs.8,50,000
D. Rs.8,70,000
28. Increase in the present value of defined benefit obligation resulting from employee's service in the current period is known as __________.
A. Short term service cost
B. Past service cost
C. Interest cost
D. Current service cost
29. Fair value of plan assets is Rs.2,00,000 at the beginning of year and Rs. 3,00,000 at the end of the year. During the year employer's contribution is Rs.80,000 and benefits paid is Rs.50,000. Actual return on plan assets is _______.
A. Rs.20,000
B. Rs.30,000
C. Rs.50,000
D. Rs.70,000
30. Kadila Ltd. has Rs.2,80,000 net income for the quarter ended 30.9.2016 after considering Rs.80,000. extraordinary losses occurred on 10.5.2016 which was allocated equally to each quarter for the financial year 2016-17. What is the profit for the quarter ended 30.9.2016 as per the AS-25?
A. Rs.2,00,000
B. Rs.2,60,000
C. Rs.2,80,000
D. Rs.3,00,000
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