T.Y B.COM
SEMESTER - 6
FINANCIAL REPORTING
(FR)
MCQS - FEBRUARY 2020
1. VLCC Ltd. has Rs. 3,50,000 net income for the quarter ended 31-12-2019, 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 31-12-2019 as per the Accounting Standard — 25?
(A) Rs. 3,70,000
(B) Rs. 3,30,000
(C) Rs. 3,50,000
(D) Rs. 3,40,000
2. To measure 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) and (B) above
(D) Lower of (A) and (B) above
3. An approach of measuring interim period income by viewing each interim period separately is __________.
(A) Integral view
(B) External view
(C) Deferred view
(D) Discrete view
4. Year to Date Basis means financial reporting for the period, which begins on the first day of the fiscal year and ends on ___________.
(A) Last day of the fiscal year
(B) Given interim date
(C) Last day of calendar year
(D) None of A, Band C
5. C Ltd has carried forward loss of Rs. 8,00,000 for the income tax purpose for which deferred tax assets has not been recognized. It also earns Rs. 10,00,000 profit in each quarter ending 30.06.18 , 30.09.18 , 31.12.18 and 31.03.19 excluding the loss carried forward. Income tax rate is expected to be 25%. What is the effective tax rate for year 2018-19?
(A) 30.20%
(B) 25%
(C) 20%
(D) None of A, B and C
6. Bhumi Ltd. is dealing in the seasonal product, as per discrete view while preparing quarterly interim financial report, expenses should be recognized
(A) In proportion of profit of each quarter.
(B) In proportion to seasonal revenue of each quarter.
(C) In equal proportion to each quarter.
(D) Fully in the quarter in which they occur.
7. If revenue of business segments P, Q, R, S, T, U and V is Rs. 3,50,000, Rs. 1,50,000, Rs. 1,00,000, Rs. 5,00,000, Rs. 2,00,000, Rs. 3,00,000 and Rs. 1,50,000 respectively, based on the criteria in terms of sales revenue, which segment(s) will not be the reportable segment?
(A) R,S,T
(B) Q,R,V
(C) P,Q,R
(D) Q,R,S
8. Investment Risk and Actuarial Risk are borne by the employer under
(A) Multi— Employer Plan
(B) Defined Benefit plan
(C) Defined Contribution Plan
(D) None of A, Band C
9. Calculate Periodic cost of defined benefit for the year 2019, if current service cost is Rs. 5,960, interest cost is Rs. 1,085 return on plan assets is Rs. 1,350, actuarial gain is Rs. 2,000 and share of current years past service cost amortized is Rs. 300.
(A) Rs. 3,995
(B) Rs. 9,953
(C) Rs. 5,345
(D) Rs. 7,345
10. OBC Ltd had 3,00,000 equity shares outstanding on 01.04.18. Net profit for the year 2018-19 is Rs. 50,00,000. Company had 9% 50,000 convertible debentures of Rs. 100 each to be converted into 3 equity shares of Rs. 10 each. Tax Rate is 25%, calculate Diluted EPS.
(A) Rs. 16.67
(B) Rs. 11.86
(C) Rs. 5.55
(D) None of A, B and C
11. D Ltd. has Rs. 4,80,000 net income for the quarter ended 30-09-2019, after considering Rs. 80,000 extraordinary gains occurred on 10-05-2019 which was allocated equally to each quarter for the financial year 2019-20. What is the profit for the quarter ended 30-09-2019 as per the Accounting Standard — 25?
(A) Rs. 5,00,000
(B) Rs. 4,00,000
(C) Rs. 4,60,000
(D) Rs. 4,80,000
12. Any segment which was reportable in previous year on the fulfilment of 10% threshold limit, it should be reportable segment during the current year even if 10% threshold limit in current year is not fulfilled.
(A) False
(B) True
(C) Partly true partly false
(D) None of A, Band C
13. AC Ltd had 5,00,000 outstanding equity share of Rs.10 each on 1.04.18. Net Profit for the year 2018-19 is Rs. 10,00,000. it had 11% 2,00,000 convertible preference of Rs. 10 Each converted into 1 equity shares of Rs. 10 each. Calculate Diluted EPS. (ignore DDT)
(A) Rs. 2
(B) Rs. 1.43
(C) Rs. 11.74
(D) Rs. 1.74
14. As per AS-17, in identification of reportable segment, at least 75% of should be in the reportable segments.
(A) Total external revenue
(B) Total liabilities
(C) Total assets
(D) Total revenue
15. S. Ltd. has Rs. 2,50,000 net income for the quarter ended 30-09-2019 which included Rs. 40,000 cumulative excess depreciation due to change in deprecation method from SLM to WDV method. Only Rs. 10,000 excess depreciation relates to this quarter. What is the income for the quarter ended 30-09-2019?
(A) Rs. 2,90,000
(B) Rs. 2,80,000
(C) Rs. 2,50,000
(D) None of A, B and C
16. Which of the following items is always treated as a long — term employee benefit?
(A) Bonus which is not payable before 12 months after the end of the period in which the related employee services are performed.
(B) A company car provided for an employee’s use
(C) A bonus payable wholly before 12 months after the end of the period in which the related employee services are performed.
(D) Employee wages and salaries
17. If after conversion of potential equity shares to equity shares, the recalculated EPS is more than basic EPS then such potential equity shares are called
(A) Potential Equity Shares
(B) Anti— Dilutive shares
(C) Dilutive shares
(D) None of A, B and C
18. Earnings Per Share gives the information regarding earnings available to each
(A) Preference Share
(B) Equity Share
(C) Debenture
(D) Both A and B
19. Those companies whose capital structure consists of equity and potential equity share have to report
(A) Current year’s basic EPS
(B) Current years diluted EPS
(C) Previous years basic and diluted EPS
(D) All of A, B and C
20. Actuarial gains and losses :
(A) Should be recognized immediately in the P & L as income or Expenses.
(B) Should not be recognized immediately in the P & L as income or Expenses.
(C) Should be recognized in P & L in next financial year
(D) None of A, Band C
21. ABC Ltd. had 1,800 equity shares outstanding as on 01-01-2019 fully paid of Rs. 10. On 31st October, 2019 it issued 600 equity shares of Rs. 10 each Rs. 5 paid. Calculate weighted numberof shares as on 31st December, 2019.
(A) 2400
(B) 2000
(C) 1850
(D) 1500
22. From the following data regarding revenue of 3 segments of Honest Ltd. Calculate enterprise revenue.
|
Particulars |
Segment - X |
Segment - Y |
Segment - Z |
|
External Sales —In India |
3,00,000 |
4,10,000 |
2,80,000 |
|
External Sales — Outside India |
1,20,000 |
1,50,000 |
60,000 |
|
Inter Segments Sales |
40,000 |
- |
90,000 |
(A) Rs. 14,50,000
(B) Rs. 13,70,000
(C) Rs. 13,20,000
(D) Rs. 11,90,000
23. A company’s profit after tax for the year ended on 31st March 2019 was Rs. 1,50,000. The Company’s profit after tax for the year ended on 31st March 2018 was Rs. 1,35,000. The company’s issued share capital at 31st March 2018 consisted of 2,40,000 equity shares. A1 for 4 bonus issue was made on 1st October 2018. There were no other share issues in either year. Basic EPS for 2019 and restated basic EPS for 2018 are:
(A) Rs. 0.50 and Rs. 0.56
(B) Rs. 0.50 and Rs. 0.45
(C) Rs. 0.55 and Rs. 0.56
(D) Rs. 0.55 and Rs. 0.50
24. An enterprise should estimate provision in respect of gratuity and other defined benefit schemes for an interim period on basis by using the actuarially determined rates at the end of the financial year.
(A) Year to Date
(B) Annual
(C) Quarterly
(D) None of A, B, and C
25. Which are the reportable segments based on the segment result given as under?
|
Particulars |
L |
M |
N |
O |
P |
|
Segment results Rs. |
3,00,000 |
4,00,000 |
50,000 |
40,000 |
22,000 |
(A) L,M,O
(B) M,N,O
(C) L,M,N
(D) L,M,P
26. Expected return on plan assets in Rs. 30,50,100 and actual return on plan assets is Rs. 31,50,600, therefore, difference is recognized as
(A) Actuarial gain Rs. 1,01,500
(B) Actuarial loss Rs. 1,00,500
(C) Actuarial gain Rs. 1,00,500
(D) None of A, B and C
27. The fair value of plan assets at the beginning and at the end of the year was Rs. 2,05,000 and Rs. 2,85,000 respectively. The employer’s contribution to the plan during the year was Rs. 75,000. Benefit payments to retirees were Rs. 50,000. Actual return on plan assets is
(A) Rs. 55,000
(B) Rs. 80,000
(C) Rs. 65,000
(D) Rs. 1,05,000
28. If risk and returns of a company is mainly affected both by difference in product/service it produces and its operation in different geographical area, then the secondary reportable segment is
(A) Market segment
(B) Geographical segment
(C) Product segment
(D) Business segment
29. ______ arises when an enterprise introduces a defined benefit plan or charges in the benefits payable under an existing defined benefit plan.
(A) Past service cost
(B) Current service cost
(C) Interest cost
(D) Actuarial gain and losses
30. Segment revenue includes
(A) Gain on sale of investment
(B) Revenue from transactions with other segments
(C) Extraordinary items
(D) All of A, Band C
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