Quiz 1 (Closed Book - 9th September) 20/09/21, 10:42 PM

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Quiz 1 (Closed Book - 9th September)

Started on Thursday, 9 September 2021, 9:01 AM

State Finished
Completed on Thursday, 9 September 2021, 9:16 AM
Time taken 15 mins 1 sec
Grade 2.00 out of 10.00 (20%)

Question 1 Raman and Prateek have their law firm registered under the Indian
Incorrect Partnership Act. They had taken loan from Canara Bank to buy some office
space. Due to poor business in the last couple of months, they were unable to
Mark 0.00 out of
repay it. The Canara Bank recovered the loan by seizing their personal
0.50
investments. This is an example of which of the following:

Select one:
A. Accrual accounting

B. Perpetual existence

C. Unlimited liability

D. Money measurement

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Quiz 1 (Closed Book - 9th September) 20/09/21, 10:42 PM

Question 2 Which of the following are current assets:

Correct 1. Cash
Mark 0.50 out of 2. Finished goods
0.50 3. Debtors
4. Patents
5. Depreciation
6. Raw Material

Select one:
A. Only 1, 2, 3, and 5 are current assets

B. Only 2, 3, 5 and 6 are current assets

C. Only 1, 2, 3, and 6 are current assets

D. Only 2, 3, 4, and 6 are current assets

Question 3 All of the following statements are correct except

Incorrect
Select one:
Mark 0.00 out of
0.50
A. Equity dividends are paid after paying preference dividends

B. Losses are absorbed by equity shareholders capital

C. Bonus shares decrease the cash balance of a company

D. Equity shares may be issued with differential voting rights

Question 4
Maxmillan Co. made a net profit of Rs.46 Lakh for the year ended March 31,
Not answered 2021. The company had 15 Lakh equity shares outstanding. It declared and
Marked out of 1.00 paid total cash dividends of Rs.7.0 Lakh. The P/E ratio was 5.0. The dividend
yield (in %) of the company is:

Answer:

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Question 5
Raman Co. is a trader of mobile phones. On March 31, 2021, it had Rs. 14
Not answered Lakh worth of mobile phones, Rs.21 lakh of paid up capital, Rs.18 lakh of
Marked out of 1.00 Bank Loan, Rs.5 lakh of Investments and Rs.10.2 Lakh in bank account and
Rs.0.2 Lakh in pre-paid insurance. The total owners’ equity of the company is
(in Rs Lakh). Write only the numeric value.

Answer:

Question 6
Manit Company purchases raw material worth Rs.5,00,000 out of which
Not answered Rs.1,00,000 was on credit, making payment from its bank account. The
Marked out of 1.00 balance will be paid after a month. The accounts that will increase and those
that will decrease are ( in that order and use comma to separate accounts
name):

Answer:

Question 7 A company purchases inventory worth Rs. 50 lakh making an initial payment
Correct of Rs.30 Lakh, balance to be paid after a month. Tick the correct option:

Mark 0.50 out of i. It is a compound entry

0.50 ii. A current liability account will decrease
iii. A current liability account will increase
iv. Two current asset accounts will get affected in opposite directions

Select one:
A. Only i, ii and iv are correct

B. Only i, iii and iv are correct

C. All options are correct

D. Only i, ii and iii are correct

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Quiz 1 (Closed Book - 9th September) 20/09/21, 10:42 PM

Question 8 A company purchases a machine for Rs. 1055486 with an installation cost of
Incorrect Rs.53087 on January 1, 2019. Depreciation is to be provided on straight line
method. The machine will yield a scrap of Rs.103064 at the end of its
Mark 0.00 out of
economic life of 6 years. The value of the machine on January 1, 2021 will be
1.00
Rs. 1055486 .

Question 9 Tata Steel is a 114 year old company founded by Jamsedji Tata. The company
Correct is listed on both BSE and NSE and continues to expand and grow even after
the death of Mr. Tata. This is attributable to:
Mark 0.50 out of
0.50

Select one:
A. The going concern concept

B. The realization concept

C. The conservatism principle

D. The cost concept

Question 10 st
Rohan took annual subscription of Readers Digest magazine on 1 January
Correct 2021 by making the entire payment of Rs.1000. Ramesh, the accountant in
Mark 0.50 out of the company, entered the amount as subscription revenue on the same date.
0.50 Which accounting principle has Ramesh forgotten?

Select one:
A.
Accrual of revenues
B.
Earning of revenues

C.
Matching of revenues

D.
Realization of revenues

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Quiz 1 (Closed Book - 9th September) 20/09/21, 10:42 PM

Question 11 Dividend is to shares in the same way as the _______________ is to

Incorrect ____________.

Mark 0.00 out of

Select one:
0.50
A.
Bonds, interest

B.
Money, value

C. Interest, bonds

D. Investment, money

Question 12 Devyani International Ltd. issued equity shares last month and got listed on
Incorrect BSE. The shares were sold at Rs.90 a piece, face value being Re.1. If the
shares are trading at a market price of Rs.126 now, it implies all of the
Mark 0.00 out of
following except:
0.50

Select one:
A. The capital of the company will increase by Rs.36 per share

B. The shareholders have made a wealth gain

C. The company will be able to sell shares in future at or above Rs.126

D. The share premium charged by the company was Rs.89

Question 13
All of the following statements are correct about annual reports except:
Not answered

Marked out of 0.50

Select one:
A. They contain opinion of independent auditors

B. They provide information of financial performance of the company

C. They present the future plans of the company

D. They show details of transactions of a company

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Quiz 1 (Closed Book - 9th September) 20/09/21, 10:42 PM

Question 14 In case of liquidation, _______________ have a residual claim on the assets of

Not answered the company:

Marked out of 0.50

Select one:
a. Bankers

b. Preference shareholders

c. Equity shareholders

d. Debenture holders

Question 15
White Horizon Company reported sales revenue of Rs. 18 Lakh for the year
Not answered ended March 31, 2021. For the same year, the cost of goods sold expense
Marked out of 1.00 was Rs. 8 Lakh, Inventory was Rs.5 Lakh, Accounts payable were Rs.1.5
Lakh, salary expense was Rs.3.7 Lakh, depreciation expense was Rs. 1 Lakh
and insurance expense was Rs. 1. Lakh If the Corporate tax rate is 30%, the
net income for the year was (in Rs Lakh):

Answer:

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