Financial Statements of a Company Test 8

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Financial Statements of a Company Test 8

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Weekly Quiz Competition

Question 1
1 / -0

According to the new Company Act 2013, which of the following is not included in 'Non-current Liabilities'?

A
Long-term borrowings

B
Short-term provisions

C
Deferred tax liabilities

D
Long-term provisions

Solution

Provision is created to meet the liability of the company. By short term provisions we mean that the provision is created to meet the short obligations/payments. Hence, short term provisions will appear in current liabilities and not in Non-current Liabilities.
Question 2
1 / -0

If vendors are issued fully paid shares of Rs. 80,000 in consideration of net assets of Rs. 60,000 then the balance of Rs. 20,000 will be _____________.

A
Debited to profit & loss account

B
Debited to goodwill account

C
Credited to capital reserve account

D
Credited to share premium account

Solution

In case where assets are purchased or taken over for consideration other than cash then the amount in excess of the value of asset is treated as goodwill as it is the additional value paid to the vendor. In the given question the asset purchased is for Rs 60,000 and the shares allotted is for Rs 80000, hence Rs-20,000 will be debited to the goodwill account.
Assets account ..........Dr 60,000
Goodwill Account ........Dr 20,000
To Share Capital account 80,000
Question 3
1 / -0

A Corporate Identity Number (of the CIN) is allotted to a company _________________.

A
From the date mentioned in the certificate of incorporation

B
From the date of registration of the company

C
From the date of promotion of the company

D
From the date of formation of the company

Solution

A Corporate Identification Number is an alpha numeric number allotted to the company by the registrar of the companies on the date when the company is registered and gets it certificate of incorporation.
Question 4
1 / -0

Which schedule of the Companies Act 2013 describes the activities which may be included in the 'Corporate Social Responsibility (CSR) policy of a Company?

A
Schedule VII

B
Schedule VI

C
Schedule V

D
Schedule IV

Solution

The schedule VII of the companies act 2013 describes the activities of 'Corporate Social Responsibility'. Any company which has net worth of Rs-500 crore or a turnover of Rs-1000 crore or net profit of Rs-5 crore will have to compulsorily spend 2% of its average net profit for immediately 3 preceeding years on CSR Activities.
Question 5
1 / -0

Dividends are usually paid on ___________ .

A
issued capital

B
authorised capital

C
paid-up capital

D
post-incorporation profit

Solution

Dividends are paid on the paid up capital. Paid up Capital is the capital money actually received by the company against the shares sold. Hence, the dividends are paid only to those shareholders who have paid money.
Question 6
1 / -0

Directions For Questions

Capital structure of a company is

...view full instructions

Calculate dividend yield on the ordinary shares _______________.

A
$$15\%$$

B
$$10\%$$

C
$$5\%$$

D
$$2\%$$
Question 7
1 / -0

Interest accrued and due on loan could be included under _______________.

A
Current Liabilities

B
Provisions

C
Loan account

D
Capital account

Solution

Interest accrued and due on loan should be included under the loan account. Outstanding interest which is not yet paid has to be added to the loan account as outstanding interest.
Question 8
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Which of the following statement is not true?

A
GST is a destination based tax.

B
GST can increase the revenue of govt.

C
GST can decrease the income of state corporations

D
None of the above

Solution

Goods and service tax is a source of revenue for the state corporations. It has created an increase in the government revenue because of good tax compliance.
Hence, the statement of that can decrease state corporations income is not true.
Statement A and B are true.
Question 9
1 / -0

Interest accrued but not due on loan should be included under ________________.

A
Current Liabilities

B
Provisions

C
Loan account

D
Capital account

Solution

Interest accrued but not due on loan should be included under the head current liabilities as it is an obligation on the part of the company and has to be met within a period of 12 months and hence will be regarded as a current liability.
Question 10
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Directions For Questions

Capital structure of a company is

...view full instructions

The cover for preference dividend is ___________.

A
$$13.4$$ times

B
$$12.9$$ times

C
$$11.7$$ times

D
$$10.9$$ times

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Re-Attempt Weekly Quiz Competition

Financial Statements of a Company Test 8

Result

Financial Statements of a Company Test 8

Score

-

Rank

-

SHARING IS CARING

Question 1

Long-term borrowings

Short-term provisions

Deferred tax liabilities

Long-term provisions

Solution

Question 2

Debited to profit & loss account

Debited to goodwill account

Credited to capital reserve account

Credited to share premium account

Solution

Question 3

From the date mentioned in the certificate of incorporation

From the date of registration of the company

From the date of promotion of the company

From the date of formation of the company

Solution

Question 4

Schedule VII

Schedule VI

Schedule V

Schedule IV

Solution

Question 5

issued capital

authorised capital

paid-up capital

post-incorporation profit

Solution

Question 6

$$15\%$$

$$10\%$$

$$5\%$$

$$2\%$$

Question 7

Current Liabilities

Provisions

Loan account

Capital account

Solution

Question 8

GST is a destination based tax.

GST can increase the revenue of govt.

GST can decrease the income of state corporations

None of the above

Solution

Question 9

Current Liabilities

Provisions

Loan account

Capital account

Solution

Question 10

$$13.4$$ times

$$12.9$$ times

$$11.7$$ times

$$10.9$$ times

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