hitechpathshala

Q. 1

Which of the following may be treated as Related party as per AS 18?

A Limited & B Limited only because Mr. X is a common director in both the company

A Limited & B Limited are totally independent company, however, majority of the Board of Directors of both the company are same

Mr. S & A limited only because Mr. S purchases majority of the products of A Limited.

ABC Bank & N Limited because all borrowings of N Limited is financed by ABC Bank.

Q. 2

A Ltd. is a non-financial enterprise and has given loans and advances to B Ltd. (subsidiary of A Ltd.). A Ltd. earned interest of ` 1,00,000 on these loans and advances. Under Accounting Standards, interest earned by A Ltd. will be shown in Cash Flow Statement as

a) Operating Cash Flow

b) Investing Cash Flow

c) Financing Cash Flow

d) Either (a) or (b)

Q. 3

Which of the following statements is correct?
1. Options are generally dilutive in nature.
2. Options are generally more dilutive as compared to other potential equity shares.

Both (1) and (2) are correct.

Both (1) and (2) are incorrect.

Only (1) is correct.

Only (2) is correct.

Q. 4

Two major considerations that govern the selection of accounting policy

Substance over form and Consistency

Prudence and Materiality

Prudence and Reliability

Reliability and Consistency

Q. 5

XYZ limited is incorporated on 01.10.2022 in India. Its first financial statement is prepared on 31.03.2023 for 6 months. AS 25 is applicable for XYZ Limited if financial statements are published:

From 01.10.2022 to 31.03.2023

From 01.10.2022 to 31.12.2024

From 01.10.2022 to 31.12.2022

AS 25 is not applicable during 1st year of operations.

Q. 6

Interim period as per AS 25 means:

A Quarter

Half year

a Calendar year

Any period shorter than a full financial year

Q. 7

: Fundamental accounting assumption is

Materiality

Business entity

Going concern

Dual aspect

Q. 8

It is essential to standardize the accounting principles and policies in order to ensure

Transparency

Consistency

Comparability

All of the three.

Q. 9

In the cash flow statement of a financial enterprise, interest paid and dividends received should be

classified as operating cash flows

classified as financing cash flows

Not shown in cash flow statement

classified as investing cash flows

Q. 10

Following is not part of Minimum component of an Interim Financial Report:

Condensed Cashflow statement

Condensed Director's Report

Condensed profit & loss statement

Selected Explanatory Notes

Q. 11

Following is not included in Segment Expense.

Income tax expense

The expense resulting from the operating activities of a segment that is directly attributable to the segment

The relevant portion of enterprise expense that can be allocated on a reasonable basis to the segment

Expense relating to transactions with other segments of the enterprise

Q. 12

Which of the following items is not considered as cash or cash equivalent?

Cash on hand

Cash at Bank

Securities deposits for 4 months

Investments with a maturity of two months from the date of acquisition.

Q. 13

Which of the following is NOT a major consideration in selection and application of accounting policies?

Prudence

Comparability

Materiality

Substance over form

Presentation & Disclosures based Accounting Standards

Marks: 10

XYZ limited is incorporated on 01.10.2022 in India. Its first financial statement is prepared on 31.03.2023 for 6 months. AS 25 is applicable for XYZ Limited if financial statements are published:

Interim period as per AS 25 means:

It is essential to standardize the accounting principles and policies in order to ensure

Following is not part of Minimum component of an Interim Financial Report:

Following is not included in Segment Expense.