T.Y B.COM
SEMESTER - 6
FINANCIAL REPORTING
(FR)
MCQS - MARCH 2018
1. 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 increase earnings per share
(C) When their conversion to equity shares would decrease earnings per share
(D) None of A, B and C
2. The disclosure Requirements of Segment Reporting includes:
(A) Revenue from External Customers
(B) Carrying Amount of Segment Assets
(C) Revenue from transactions with other segments
(D) All of the above
3. ABC Ltd had 1,00,000 equity shares on 01.04.16. On 01.10.16 it issued 3 equity shares bonus for every 10 equity shares outstanding on 30.09.16. Net profit for 2016-17 was Rs. 52,00,000 and Net Profit for 2015-16 was Rs. 30,00,000. Calculate EPS of 2016-17 and Adjusted EPS of 2015-16.
(A) EPS Rs. 23.08 and Adjusted EPS is Rs. 40
(B) EPS Rs. 52 and Adjusted EPS is Rs. 30
(C) EPS Rs. 40 and Adjusted EPS is Rs. 23.08
(D) None of A, B and C
4. 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 primary reportable segment is
(A) Product segment
(B) Geographical segment
(C) Business segment
(D) Market segment
5. What is the minimum percentage of total external revenue of the enterprise which should be there in the reportable segments?
(A) 75%
(B) 50%
(C) 60%
(D) 10%
6. An enterprise should estimate provisions in respect of gratuity on __________ basis as per AS - 25.
(A) Year-to-Date
(B) Quarterly
(C) Annual
(D) None of A, B and C
7. Under defined benefit obligation, past service cost is
(A) Treated as Long term liability
(B) Amortized over the remaining period of service
(C) Wholly charged in the year in which it occurs due to change in demographic assumptions
(D) None of A, B and C
8. Which are the reportable segments based on the segment result given as under?
|
Particulars |
Segment-P |
Segment-Q |
Segment-R |
Segment-S |
|
Segment Result |
Rs.5,00,000 |
Rs. (-) 4,00,000 |
Rs. 50,000 |
Rs. (-) 50,000 |
(A) P, Q & R
(B) P, Q, R & S
(C) P & Q
(D) P & R
9. In which of the following situation, the restatement of EPS is required to be made ________.
(A) Increase in the number of equity shares as a result of bonus issue
(B) Decrease in the number of equity shares as a result of buy-back of equity shares
(C) Increase in the number of equity shares as a result of new fresh issue
(D) All of the above
10. ABC Ltd. had outstanding equity shares of 5,00,000 on 01.04.16. Net profit for the year 2016-17 is Rs. 50,00,000. ABC Ltd had 10% 50,000 convertible debentures outstanding of Rs. 100, each to be converted into 5 equity shares. Tax Rate is 30%. Calculate Diluted EPS.
(A) Rs.10
(B) Rs.7.13
(C) Rs.8
(D) None of A, B and C
11. An approach of measuring interim period income by viewing each interim period separately is
(A) Integral View
(B) Deferred View
(C) External view
(D) Discrete View
12. As per the AS-25, Interim period is of
(A) Shorter than One year
(B) Three months
(C) One Month
(D) Six months
13. ABC Ltd had outstanding equity shares of 1,00,000 on 1.04.16. Net Profit for the year 2016-17 is Rs. 10,00,000. It had 15% 15,000 Convertible preference shares of Rs. 100 each, each converted into one equity share of Rs. 100 each. Calculate Diluted EPS. (Ignore Dividend distribution tax)
(A) Rs. 11.65
(B) Rs. 10.65
(C) Rs. 15
(D) None of A, B and C
14. Sri Ltd. has Rs.2,80,000 net income for the quarter ended 30-09-2016, after considering Rs.80,000 extraordinary loss incurred on 22-05-2016 which was allocated equally to each quarter for the financial year 2016-17. What is the profit for the quarter ended 30-09-2016 as per the AS-25?
(A) Rs.2,80,000
(B) Rs.2,60,000
(C) Rs.3,00,000
(D) None of A, B and C
15. Which of the following is not included in Segment Assets
(A) Goodwill
(B) Current Assets
(C) Income tax Assets
(D) Operating Assets
16. ________ implies a relationship of an employer and an employee.
(A) Contract of Service
(B) Contract for service
(C) Outsourcing Contract
(D) None of A, B and C
17. ABC. Ltd have-carried forward loss of Rs. 5,00,000 for the income tax purpose for which deferred tax assets has not been recognized. It also earns Rs. 7,00,000 profit in each quarter ending 30.06.16, 30.09.16, 31.12.16 and 31.03.17, excluding the loss carried forward. Income tax rate is expected to be 30%. What is the effective tax rate forthe year 2016-17?
(A) 14.64%
(B) 30.64%
(C) 24.64%
(D) None of A,B and C
18. The total revenue of business segment P, Q, R, S and T is Rs. 350, Rs. 150, Rs. 100, Rs. 500 and Rs. 200 respectively. Based on the criteria of terms of sales revenue which segment will not be the reportable segment.
(A) Q
(B) R and Q both
(C) R
(D) None of A, B and C
19. According to AS-17 segment expenses includes
(A) Extraordinary items
(B) Expenses directly attributable to the segment
(C) Income tax expenses
(D) None of A, Band C
20. Expected return on plan assets is Rs. 20,00,000 and actual return on plan assets is Rs. 21,50,500. Then difference between is
(A) Actuarial loss Rs. 1,50,500
(B) Actuarial gain Rs. 3,01,000
(C) Actuarial gain Rs. 1,50,500
(D) None of A, B and C
21. To measure obligation under defined benefit plan, the discount rate should be determined by reference to
(A) Market yield on government bonds at the balance sheet date
(B) Market yield on government bonds at the beginning of the year
(C) Lower of A or B above
(D) Higher of A or B above
22. Investment Risk and Actuarial Risk are borne by the employer under
(A) Defined Benefit plan
(B) Defined Contribution Plan
(C) Multi-Employer Plan
(D) None of A, B and C
23. The fair value of plan assets at the beginning and end of the year was Rs. 2,00,000 and Rs. 2,85,000 respectively. The employer's contribution to the plan during the year was Rs. 70,000. Benefit payments to retirees were Rs. 50,000. Calculate the actual return on plan assets.
(A) Rs.80,000
(B) Rs.1,05,000
(C) Rs.65,000
(D) Rs.70,000
24. ABC Ltd. has 1800 equity shares of Rs. 10 each fully paid up as on 1st April 2016. On 31st January 2017 it issued 600 equity shares of Rs. 10 each 5 paid up. The weighted average number of equity shares as on 31st March 2017 will be
(A) 1850 shares
(B) 2100 shares
(C) 2400 shares
(D) None A, B and C
25. In the II quarter, a company charged depreciation method from WDV to SLM, which resulted in excess depreciation of Rs.20 lakhs. The entire amount has been debited in the II quarter, through the share of the II quarter is only Rs.5 lakhs. Give the treatment required as per AS-25.
(A) Less Rs.15 lakhs from profit as adjustment required for change in depreciation method
(B) Less Rs.20 lakhs from profit as adjustment required for change in depreciation method
(C) Add Rs.15 lakhs to profit as adjustment required for change in depreciation method
(D) No adjustment is required to the profit
26. MST Ltd. has Rs.9,50,000 net income for the quarter ended 31-12-2016, which includes Rs.50,000 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 AS-25?
(A) Rs.9,00,000
(B) Rs.9,30,000
(C) Rs.9,50,000
(D) Rs.9,70,000
27. Increase in the present value of defined benefit obligation resulting from employee's service in the current period is known as
(A) Past service cost
(B) Short term service cost
(C) Current service cost
(D) Interest cost
28. The objective of AS- 25 is to
(A) To prescribe the principles for recognition and measurement of various itemsin interim reports
(B) To prescribe minimum content of Interim financial report
(C) To prescribe minimum content of complete financial statements for an interim period
(D) All of the above
29. Segment revenue includes ______
(A) Revenue from transactions with other segments
(B) Gain on sale of investment
(C) Extraordinary items
(D) All of A, B and C
30. Those companies whose capital structure consists of potential equity share has to report
(A) Diluted EPS
(B) Basic EPS
(C) Both A and B
(D) None of A, B and C
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