Financial Statements Interpretation – Corporate and Management Accounting MCQ

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Financial Statements Interpretation – Corporate and Management Accounting MCQ

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Profits of Q Ltd. before remuneration of MD was 12,06,000 for the year ended 31st March 2020. The said profit has been calculated considering the following figures:Capital expenditure 4,95,000Depreciation as per Schedule II 42,000 Bonus to technicians 1,89,000Compensation paid to work- 42,000 menLoss on sale of fixed assets 42,000 Subsidy from Govt. 2,52,000Multiple shift allowance 63,000Provision for taxation 16,80,000Ex-gratia payments to workers 21,000 Profit on sale of building 1,26,000Determine the maximum remuneration payable to the MD of Z Ltd. from the above information.

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The gross profit of G Ltd. is ₹ 40,38,000 before considering the following items:Salaries & Bonus 1,80,000Repairs to Buildings 90,000R & D Expenses 15,000Directors Fees 6,000Managing Director’s Salary 36,000Interest on Debentures 20,000Profit on sale of plant 1,20,000Subsidy from Central Govt. 2,19,000The whole of the R & D expenses has been incurred for the purchase of equipment. On Plant depreciation provided up to date was ₹ 42,000. Maximum remuneration payable to MD without complying with provisions of the Schedule V is

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The manager of Z Ltd. is entitled to a commission @ 3% on net profit after charging such commission. Calculate the commission payable to the manager.Net profit before tax and managerial remuneration = ₹ 8,80,000Depreciation as provided in books of account = ₹ 1,10,000Depreciation as per the Companies Act, 2013 = ₹ 1,32,000

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Net profits before charging the commission ₹ 80,000. Following had been charged off against the profits as determined as above:– Depreciation ₹ 31,900– Provision for bad debts ₹ 920.Other relevant information:– Actual bad debts ₹ 800.– Depreciation as per Schedule II ₹ 39,160.Maximum remuneration payable to MD without complying with provisions of the Schedule V is

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Revenue profit on the sale of plant 1,40,000Subsidy from Central Govt. 7,30,000Capital profit on the sale of plant 1,30,000Interest on Investment 60,000Depreciation as per Schedule II 3,00,000Maximum remuneration payable to MD without complying provisions of the Schedule V is:

The gross profit of AG Ltd. is ₹ 20,78,000 before considering the following items:

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The net profit after tax of QPR Ltd. is ₹ 15,48,000. This net profit is arrived at after debiting P & L A/c following items:Income Tax: ₹ 3,20,000;Ex-gratia payment to employee: ₹ 50,000 ’Following items are credited to P & L A/c before arriving above net profit:Capital Profit: ₹ 75,000Profit on forfeiture of shares: ₹ 4,300Maximum remuneration payable toManaging Director as per provisions of the Companies Act, 2013 without complying with provisions of the Schedule Vis-

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Net profit after tax of XYZ Ltd. is ₹ 1,00,000 after debiting provisions for tax ₹ 40,000 and Managing Director’s Salary 60,000. Maximum remuneration payable to Managing Director as per provisions of the Companies Act, 2013 without complying with provisions of the Schedule V is

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Computation of net profit for Section 135 is as per Section 198 of the Companies Act, 2013 which is primarily:

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The Board of every company shall ensure that the company spends, in every financial year, at least of the company made during the____, in pursuance of its CSR Policy.

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Provisions of Corporate Social Responsibility (CSR) are applicable to the company having a net worth of

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Every company fulfilling specified criteria shall constitute Corporate Social Responsibility (CSR) Committee of the Board consisting of:

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In case of companies depreciation on assets are provided on the basis of

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According to AS-6 “Depreciation Accounting”, issued by the ICAI change in method is permitted

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The depreciation fund method is also known as

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Choose the true statement.

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What do you understand when one refers to as “net book value” of a non-current asset?

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Revenues affect net income

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The most compelling reason for accounting for depreciation is:

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Which of the following expenses is NOT included in the acquisition cost of a plant and equipment?

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In the case of downward revaluation of an asset which is for the first time, the account to be debited is

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Computers taken on hire by a business for a period of twelve months should be classified as

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Obsolescence of a depreciable asset may be caused by(I) Technological changes.(II) Improvement in the production method.(III) Change in market demand for the product or service output.(IV) Legal or other restrictions.

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The balance sheet gives information regarding the

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Which of the following is/are the important characteristic of depreciation?P. Depreciation is a permanent, continuous, and gradual increase in the value of a fixed asset.Q. Depreciation is the appropriation of profit.R. Depreciation is always computed in a systematic and rational manner.Select the correct answer from the options given below

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Provisions of Corporate Social Responsibility (CSR) are applicable to the company having a turnover of

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Which of the following statements is /are NOT correct?

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Amortization applies to

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_____which can be immediately be converted into cash, such as Government Securities.

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Depreciation is a process of

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______are those fixed assets that have fixed content, like coal in a coal mine; the value of the asset goes down as the contents are taken out.

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If the Effective Capital of the company is negative and it passes special resolution then it may, without the approval of Central Government, pay remuneration to the managerial person not exceeding:

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Arrange the following assets as per permanence order.I. Cash & BankII. BuildingIII. InvestmentIV. Stock

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The annual installment to depreciation fund for replacement of a fixed asset is

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Which of the following statement is true?

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If the Effective Capital of the company is ₹ 250 Crores and above it may, without the approval of Central Government, pay remuneration to the managerial person not exceeding:

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Arrange the following assets as per liquidity order.I. Cash & BankII. BuildingIII. InvestmentIV. Stock

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If the Effective Capital of the company is ₹ 100 Crores and above but less than ₹ 250 Crores it may, without the approval of Central Government, pay remuneration to the managerial person not exceeding:

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In_____, approach the assets are stated in the balance sheet in the order in which they can be easily converted into cash and the liabilities in the order in which they have to be paid off.

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If the Effective Capital of the company is ₹ 5 Crores and above but less than ₹ 100 Crores it may, without the approval of Central Government, pay remuneration to the managerial person not exceeding:

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In_____, approach assets which are to be used for long-term in the business and are not meant to be sold are presented first and assets that are most liquid such as cash in hand, are presented at the bottom.

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If Net Profit is the starting point for the purpose of calculation of managerial remuneration then which of the following you will deduct:

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The arrangement of assets and liabilities in accordance with a particular order is known as of balance sheet.

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As per Section 198 of the Companies Act, 2013 while calculating net profit for managerial remuneration, if gross profit is the starting point then which of the following is allowed to deduct

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Which of the following are current assets of a business?(i) Income received in advance(ii) Stock(iii) Debtors(iv) Pre-paid expenses(v) Accrued income

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If Net Profit is the starting point for the purpose of calculation of managerial remuneration then which of the following you will add:

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As per Section 198 of the Companies Act, 2013 while calculating net profit for managerial remuneration, if gross profit is the starting point then which of the following is allowed to deduct

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