FINANCIAL REPORTING - FEBRUARY 2016

T.Y B.COM

SEMESTER - 6

FINANCIAL REPORTING

(FR)

MCQS - FEBRUARY 2016

1. As per AS-15, a provident fund which guarantees a specified rate of return is a:-

(A) Defined benefit Plan 

(B) Defined Contribution Plan

(C) Insured Benefit Plan

(D) None of a, b and c

2. To measures obligation under defined benefit 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

3. ‘A Limited’ reports quarterly estimates of annual income of Rs. 10 lakhs. Assume tax rate on first Rs. 5,00,000 at 30% and on the balance income at 40%. The estimated quarterly incomes are Rs. 75,000. Rs. 2,50,000, Rs. 3,75,000 and Rs. 3,00,000. Calculate the tax expense to be recognized in 3rd quarter.

(A) Rs. 1,12,500 

(B) Rs. 1,50,000

(C) Rs. 1,31,250 

(D) None of a, b and c

4. Segment Revenue includes all of the following except : -

(A) Gains on sales of investments or on extinguishment of debt.

(B) The portion of enterprise revenue that is directly attributable to a segment.

(C) The relevant portion of enterprise revenue that can be allocated on a reasonable basis to a segment, and

(D) Revenue from transactions with other segments of the enterprise.

5. Year to date basis means financial reporting for the period, which

(A) Begins on the first day of the fiscal year and ends on given interim date.

(B) Begins on the first day of the January and on the last day of December

(C) Begins on the first day of the quarterand ends on the last day of the quarter.

(D) Begins on the first day of the last year and ends on the given interim date.

6. If risk and returns of a company is mainly affected both by difference in product/service it produces and its operation if different geographical area, then the primary reportable segment is _________

(A) Product segment 

(B) Business segment

(C) Market segment

(D) Geographical segment

7. What is the minimum percentage of total external revenue of the enterprise which should be there in the all reportable segments?

(A) 10% 

(B) 50% 

(C) 60% 

(D) 75%

8. Which of the following is not a type of Defined contribution Plans?

(A) Multi-employee plans 

(B) Multi-employer plans

(C) State Plans 

(D) Insured Benefits

9. A Limited had 2,70,000 equity shares outstanding as on 01.04.2014 fully paid of Rs. 10 each. On 31.1.2015. It issued 90,000 equity shares of Rs. 10 each, Rs. 5 paid Weighted average number of equity shares (WANES) as on 31.3.2015 is:

(A) 3,60,000 shares 

(B) 2,77,500 shares

(C) 3,15,000 shares 

(D) 2,82,800 Shares

10. When is potential equity share said to be ant-dilutive?

(A) When their conversion to equity shares would increase earnings per share

(B) When their conversion to equity shares would decrease earning per share

(C) When their conversion to equity shares would increase loss per share

(D) None of a, b and c

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