icfai sample papers

8/13/2019 icfai sample papers

1/18

Sample Papers

Answer all questions.Marks are indicated against each question.

1. The dividend declared by the Board of Directors between two annual general meetings

is called as(a !ro"osed dividend

(b #inal dividend

(c $nterim dividend(d Declared dividend

(e %n"aid dividend.

(1 mark

&. $n which of the following situations' "rice earnings ratio is a""lied(a To determine the financial risk of a business entity

(b To determine the e)"ected market "rice of the shares of a com"any

(c To assess the earning "otential of a com"any in the near future

(d To e)amine the o"erational efficiency of a com"any(e To check how efficiently the assets are utili*ed by a firm.

(1 mark+. $f the holding com"any receives dividend out of "re,acquisition "rofits of the

subsidiary com"any' it

will be(a -redited to the ca"ital reserve account

(b Debited to the ca"ital reserve account

(c -redited to the consolidated "rofit and loss account

(d Debited to the consolidated "rofit and loss account(e $gnored com"letely.

(1 mark. /hich of the following items could a""ear in a com"any0s cash flow statement(a !ro"osed dividends

(b #orfeiture of shares

(c Bonus issue of shares(d e"ayment of loan

(e -onversion of debentures into equity shares.

(1 mark

2. 3ross 4alue Added is equal to(a 5et 4alue Added 6 De"reciation

(b 5et 4alue Added 6 $nterest

(c 5et 4alue Added 7 De"reciation(d 5et 4alue Added 7 $nventory

(e 5et 4alue Added 6 $nventory.

(1 mark8. An amalgamating com"any transfers its assets to the eali*ation Account at

(a Agreed values

(b #air market values

(c 9riginal costs


2/18

(d Book values

(e Agreed value or book value' whichever is less.

(1 mark:. The issued and "aid,u" share ca"ital of Al"ha ;imited is as follows='===

(b s.&'='===

(c s.+'='===

(d s.2'='===(e s.2'=='===.

(& marks>. /hich of the following items re"resent use of funds

(a @ale of land and building at loss

(b Dividend "ro"osed and not yet declared(c @ale of trade marks and "atent rights

(d 5et loss from o"erations

(e Amorti*ation of goodwill.

(1 markThe "rofits earned by a subsidiary com"any before holding com"any acquires control

over it are known

.as

(a evenue "rofits

(b -a"ital "rofits(c @u"er "rofits

(d 5ormal "rofits

(e Minority interest.

/hich of the following is not an item to be recorded under -urrent Assets' ;oans andAdvances under

1=.

!art 1 of @chedule 4$ of the -om"anies Act' 128(a $nterest accrued on investment

(b Bills of e)change

(c Balances with customs' "ort trust' etc(d Develo"ment e)"enditure not adCusted

(e ;oose tools.

(1 mark


3/18

11. arnings "er share can be classified as a

(a ;iquidity ratio

(b 9wnershi" ratio(c ;everage ratio

(d Activity ratio

(e -a"ital gearing ratio.(1 mark

1&. An interest coverage ratio of &.&2 indicates that(a arnings before interest and ta)es is &.&2 times the interest "ayable

(b arnings before ta)es is &.&2 times the interest "ayable

(c arnings after ta)es is &.&2 times the interest "ayable

(d etained earnings are &.&2 times the interest "ayable(e arnings before de"reciation and ta)es is &.&2 times the interest "ayable.

(1 mark

1+. -onsider the following data of a com"any

-redit sales +'=='===-ost of sales &'=='===

Debtors 1'&='===

-reditors &'2='===The average collection "eriod for the com"any is

(a 8= days

(b :+ days

(c 18 days(d &1 days

(e &= days.

(& marks

9n March +1' &==:' A ;td. acquired B ;td. As on that date B ;td.0s balance sheet was as

follows

The "ro"ortinate share of A ;td.' in the "urchase consideration "ayable to B ;td.' was

(a s.>'===(b s.='===

(c s.+&'===

(d s.2='===(e s. >'===.

(& marks

1>. /hich of the following is a use of funds that decreases cash in cash flow statements

(a A gross increase in fi)ed assets

(b A net decrease in any asset other than cash or fi)ed assets

(c !roceeds from sale of equity shares(d #unds from o"erations

(e A net increase in any liability.

(1 mark

1. /hich of the following statements is false (a A bill drawn by the holding com"any and acce"ted by its subsidiary com"any is an

outsideobligation

(b A consolidated balance sheet shows the assets and liabilities of the holding com"any

and itssubsidiaries

(c A holding com"any can acquire control over its subsidiary com"any by controlling

the

com"osition of board of directors of the subsidiary com"any(d The time interval between the dates of balance sheet of holding com"any and

subsidiary

com"any cannot be more than 8 months(e !re"aration of consolidated balance sheet is not com"ulsory in $ndia.

(1 mark

&=. very figure in the financial statements for the first year is considered as 1== "ercentwhile the

corres"onding figures for the subsequent years are e)"ressed as a "ercentage of the first

year figure.

/hich ty"e of analysis is being carried out(a -ross,sectional analysis

(b Fear,to,year change analysis

(c $nde) number trend analysis(d -ommon si*e analysis

(e #unds flow analysis.

(1 mark&1. The o"ening balance of !rofit and ;oss A""ro"riation account of /ord /orld ;td.

for the year &==8,=:

was s.:'2==. The dividends "aid to shareholders were s.1'2==. The ending balance of

!rofit and ;oss


6/18

A""ro"riation account was s.2'===. The net income or net loss for the accounting

"eriod was

(a 5et loss of s.1'===(b 5et income of s.1'===

(c 5et loss of s.&'===

(d 5et income of s.&'===(e 5et income of s.8'2==.

(& marks

&&. $ssue of bonus shares by a subsidiary com"any out of its "re,acquisition "rofits will

(a Decrease cost of control

(b $ncrease cost of control

(c Gave no effect on cost of control(d $ncrease revenue "rofit

(e Decrease revenue "rofit.

(1 mark

(1 mark

&+. Ta) deducted at source on the "ayments made by a com"any a""ears in the Balance@heet of the

com"any on the

(a ;iabilities side under current liabilities(b ;iabilities side under "rovisions

(c Assets side under current assets

(d Assets side under loans and advances

(e Assets side under miscellaneous e)"enditure.(1 mark

&. /hich of the following is a source of funds while carrying out funds flow analysis on

total resourcesbasis

(a edem"tion of "reference share ca"ital(b $nstallation of a ca"ital asset

(c -onversion of debentures into equity shares

(d @elling an old car today in order to buy a new one after one year

(e Buy back of equity shares.(1 mark

/hile "re"aring a funds flow statement on working ca"ital basis' a short term loan re"aid

in cash by the&2.

organi*ation

(a $s shown as a source of funds(b $s shown as an increase in cash

(c $s shown as a decrease in cash

(d $s shown as increase in working ca"ital

(e $s shown as decrease in working ca"ital.


7/18

(1 mark

&8. The following data are available from the books of Hudo -om"any are estimated at s.11'=='===' the estimated gross "rofitfor the year

&==:,=> will be

(a s.2'2='===(b s.8'8='===

(c s.'&='===

(d s.'='===

(e s.2'+='===.


11/18

(& marks

The original cost of machinery is s.2='=== and accumulated de"reciation is s.&2'===.

This machinery .

is sold at a gain of s.8'===. The working ca"ital "rovided by the sale of the machinery is

(a s.+&'2==(b s.+1'===

(c s.+='===

(d s.&'2==(e s.&:'2==.

(& marks

2. 9n 9ctober =1' &==8' @un ;td. acquired 8=? shares in Moon ;td. at a cost ofs.1>':2'===.

Balance @heet of Moon ;td. as on March +1' &==:

;iabilities s. Assets s.

@hare ca"ital &='=='=== #i)ed assets &>'2='===(&'=='=== shares s.1= each -urrent assets +'>='===

-a"ital reserve 8'=='===!rofit and loss account '=='===

-urrent liabilities &'+='===

Total +&'+='=== Total +&'+='===@un ;td0s share in ca"ital "rofits of Moon ;td. was s.'&='===. The amount of goodwill

that is to be

shown in the -onsolidated Balance @heet as on March +1' &==: was

(a s.&'22'===(b s.&'>2'===

(c s.8':2'===

(d s.+':2'===(e s.1'+2'===.

(& marks

8. The following information relates to /estern ;td.>

(d s.':>

(e s.:'=:>.(& marks

G ;td. acquired :2? shares of @ ;td. on August 1' &==8. The equity share ca"ital of @

;td. is

.s.1'=='===. The ;and and buildings of @ ;td. are a""reciated by s.&'=='===. The

minority interest

shown in the consolidated balance sheet as on March +1' &==: was(a s.&'=='===

(b s.1'2='===

(c s.1'=='===(d s. :2'===

(e s. 2='===.

(& marks

2=. The following data "ertains to Amrit ;td. for the year ended March +1' &==:

(& marks

The share ca"ital of @unny ;td. com"rises of quity @hare -a"ital (s.1= each ofs.+'=='===. Garry

8:.

;td. acquired &'=== shares in @unny ;td. on Huly 1' &==: at the rate of s.1&.2= "ershare. The cost of

the investment and the holding "ercentage of Garry ;td. in @unny ;td. are

(a s.&'='=== and >2?(b s.+'=='=== and :=?

(c s.&'='=== and >=?

(d s.1'&2'=== and >=?

(e s.+'=='=== and >=?.(& marks

aCu ;td. acquired 8=? shares of ani ;td. on 5ovember =1' &==8. The "rofit and loss

account showed

8>.a debit balance of s.='=== on A"ril =1' &==8 and a credit balance of s.1'2='=== on

March +1' &==:.The share of minority in the ca"ital "rofitEloss of to be shown in the -onsolidated

Balance @heet as on

March +1' &==: was(a (s.2='===

(b (s.&'===

(c s.>'===

(d (s.:2'===(e s.&='===.

(& marks

(& marks

The increase in equity from maCor o"erating activities of a business entity is known as

8.(a -a"ital

(b 3ross "rofit

(c 5et worth

(d 5et "rofit(e -ash in hand.

(1 mark

:=. /hich of the following would directly affect the dividend yield

(a etention ratio(b Book value "er share

(c 5ominal value of a share

(d The cost of equity ca"ital

(e Debt,equity ratio.


18/18

(1 mark

icfai sample papers

Documents