Introduction to Corporate Accounting – Corporate and Management Accounting MCQ

The paid-up capital of Apsara Ltd. consisted of ₹ 5,00,000 equity shares of ₹ 10 each and 50,000, 8% preference shares of ₹ 100 each. The statement of profit and loss of the company for the year ended 31.3.2019 showed a net profit before tax of ₹ 20,00,000. Net profit brought forward from the previous year’s balance sheet amounted to ₹ 6,00,000. The company makes a provision of 40% for income tax. Following appropriations were proposed by the company:(a) To pay final dividend @ ₹ 1.50 per share to equity shareholders.(b) To transfer 5% of net profit to general reserve.

Due to paucity of profits, MUSKAT LTD. an Indian company proposes to declare dividends out of its general reserves.10% pref. shares (₹ 100 each): ₹ 10,00,00Equity shares (₹ 100 each): ₹ 30,00,000General reserve: ₹ 8,00,000Securities premium: ₹ 2,00,000Credit balance of P & L A/c: ₹20,000Net profit for the year (after tax): ₹ 1,80,000Average dividend for last 3 years: 15%As the Companies (Declaration of Dividend Out of Reserves) Rules, 2014 how much maximum percentage of dividend can be paid by the company out of reserves.

Yash Ltd. has only one type of capital, viz. 40,000 equity shares of ₹ 100 each. It also has got reserves totaling ₹ 20,00,000. The company closes its books on 31st March each year. It has paid dividends @ 15% up to 2015-2016 and 20% thereafter. In 2018-2019, the company suffered a loss of ₹ 2,50,000; therefore, it wishes to draw the required amount out of the reserves to pay the dividend at 12%. As the Companies (Declaration of Dividend Out of Reserves) Rules, 2014 how much maximum percentage of dividend can be paid by the company out of reserves.

A company had made provision for tax ₹ 70,000 for last year. Actual tax liability for the last financial year settled at ₹ 68,000. It had paid advance tax for last year ₹ 65,000. Which of the following statement is correct in relation to tax treatment in accounts of the company?

Trial Balance of Complex Ltd., as of 31.3.2019 shows the following item:(1) Advance payment of income tax includes ₹ 35,000 for 2017-20 18.(2) Actual tax liability for 2017-2018 amounts to ₹ 3 8,000 and no effect for the same has so far be given in accounts.(3) Provision for income tax has to be made for 2018-2019 for ₹ 40,000.
You are required to calculate:
(a) Liability for taxation for last year ie. 2017-2018;
(b) Extra provision to be made in the current year for last year.

A Company has a paid-up equity share capital of ₹ 37,50,000 (of ₹ 10 each) and 11% preference share capital of ₹ 12,50,000 (of ₹ 100 each). The balance of profit brought forward from the previous Balance Sheet was ₹ 95,000. Profit for the year ended on 31.3.2018 amounted to ₹ 14,50,000 after tax. The directors proposed a dividend of 24% on equity share capital, after the following provisions:(i) Transfer 10% of current profits to general reserves.(ii) Provision of dividend on preference shares

Any money transferred to the unpaid dividend account of a company that remains unpaid or unclaimed for a period of_____from the date of such transfer must be transferred by the company to Investor Education and Protection Fund

In the Balance Sheet, Corporate Dividend Tax will be shown as a liability under the heading –

After the declaration of the dividend, the company has to pay dividends within_____of declaration of dividend. If the amount of dividend remains unpaid or unclaimed for 30 days of declaration of dividend, then in next_____the company has to transfer the amount unclaimed to a special account in any scheduled bank to be called the “Unpaid Dividend Account”.

As per the provisions of the Companies Act, 2013, the amount of the dividend, including interim dividend, shall be deposited in a scheduled bank in a separate account within_____from the date of declaration of such dividend.

Which of the following statement is correct?

In the real world, we find that dividends –

The primary goal of a publicly-owned firm interested in serving its stockholders should be too:

Which of the following type of companies is required to file their accounts in Extensible Business Reporting Language (XBRL) format?(I) Subsidiary of Indian Listed Company(II) Companies that are required to prepare their financial statements in accordance with the Companies (Indian Accounting Standards) Rules, 2015(III) Private company having turnover of ₹ 99 Crore.<-(IV) Public companies having paid-up capital of ₹ 3 Crore.

Retained earnings are –

The declared dividend must be paid within_____of declaration.

Which of the following type of companies is required to file their accounts in Extensible Business Reporting Language (XBRL) format?

Which of the following will be shown in the balance sheet under the heading ‘cash and cash equivalents?

As per Section 128 of the Companies Act, 2013, every company shall prepare and keep at its_____books of account and other relevant books and papers and financial statement for every financial year,

As per Rule 3 of the Companies (Filing of Documents and Forms in Extensible Business Reporting Language) Rules, 2015, all companies having turnover of_____has to file their Balance Sheet, Profit & Loss A/c, and other documents with the Registrar using the Extensible Business Reporting Language (XBRL)

As per Schedule in of the Companies Act, 2013, a Company shall disclose by way of notes additional information regarding aggregate expenditure and income in relation to any item of income or expenditure which exceeds:

Which of the following appears under the heading ‘Reserves & Surplus’ in the balance sheet?

As per Rule 3 of the Companies (Filing of Documents and Forms in Extensible Business Reporting Language) Rules, 2015, all companies having_____has to file their Balance Sheet, Profit & Loss A/c, and other documents with the Registrar using the Extensible Business Reporting Language (XBRL).

Which of the following is required to be disclosed in notes to accounts in respect of ‘Share Capital?

OPC shall file a copy of the financial statements duly adopted by its member, along with all the documents which are required to be attached to such financial statements, within_____from the closure of the financial year.

Liability shall be classified as current when it satisfies any of the following criteria:

As per Rule 12 of the Companies (Accounts) Rules, 2014, a financial statement shall be filed in_____which should be pre-certified by Practicing CA.

As per Schedule HI of the Companies Act, 2013, where the normal operating cycle cannot be identified, it is assumed to have a duration of –

A copy of the financial statements, including consolidated financial statement, along with all the documents attached to financial statements, duly adopted at the AGM, shall be filed with the Registrar within_____of the date of AGM in a prescribed manner along with prescribed fees.

An asset shall be classified as current: