TYBCOM SEM 6 || Finance Reporting MCQS of End Sem Exam

 

FINANCIAL REPORTING

(FR)

MCQS - UNIT 4

   ---> VALUE ADDED STATEMENTS

   ---> FINANCIAL REPORTING FOR MUTUAL FUNDS

   ---> CORPORATE SOCIAL RESPONSIBILITY

VALUE ADDED STATEMENTS

1) The market price of the output of an enterprise less the price of the goods and services acquired by transfer from other firm is called................

(A) Value Added 

(B) Value Addition 

(C) Gross Value Added 

(D) None of the above

2) Net Value Added = Gross Value Added - ...............

(A) Tax 

(B) Depreciation 

(C) Cost 

(D) Dividend

3) The difference between the Gross Value Added and Net Value Added is ............

(A) Investment 

(B) Value Added 

(C) Production Flow 

(D) Depreciation

4) ........... is arrived at the deducting from sales revenue the cost of all materials and services which were brought in from outside suppliers.

(A) Gross Value Added 

(B) Value Added

(C) Net Value Added 

(D) Retained Profit

5) NVA = ..............................

(A) S-B-Dep.

(B) R+W+I+T+Div. 

(C) Both A & B 

(D) None of these

6) Value added statement is substitute the traditional income statement.- True or False.

(A) True 

(B) False 

(C) Partially True 

(D) Partially False

7) Reporting of value added statement improves the attitude of ...............

(A) Company 

(B) Management 

(C) Employees 

(D) Government

8) A company’s VA indicate the company’s contribution to .............

(A) Employment

(B) Income 

(C) Per capital income 

(D) National Income

9) Bank overdraft should be considered as .................

(A) Capital 

(B) Expense 

(C) Provision of a banking service 

(D) Income

10) ................. makes easier for the company to introduce a productivity linked bonus scheme for employees.

(A) Value Added Statement 

(B) Gross Value Added

(C) Net Value Added 

(D) None of these

FINANCIAL REPORTING FOR MUTUAL FUNDS

11) .............. is a vehicle for collective investment.

(A) Mutual fund 

(B) Insurance 

(C) Investment fund 

(D) None of these

12) .............. is an organization which sets up a MF organization.

(A) Sponsored 

(B) Custodian 

(C) Asset Management Company 

(D) Trust

13) Who can become sponcerer ?

(A) Bank

(B) Financial Institutions

(C) Private & Public Ltd. companies 

(D) None of these

14) Trust is established by ...............

(A) Custodian 

(B) Company 

(C) Sponcerer 

(D) None of these

15) Which of the following keeps security in safe custody on behalf of M.F. Organization.

(A) Sponcerer 

(B) Trust 

(C) Asset Management Company 

(D) Custodian

16) In which scheme, the mutual fund continuously offers to sell and repurchase its units at NAV?

(A) Open-ended scheme 

(B) Close- ended scheme

(C) Interval Scheme 

(D) None of these

17) Liquidity is the key feature of ............. scheme.

(A) Open ended 

(B) Close ended 

(C) Interval 

(D) Liquidity

18) Which scheme have a fixed corpus and stipulated maturity period ranging between 2 to 5 years ?

(A) Open ended scheme 

(B) Close ended scheme

(C) Interval scheme 

(D) All of the above

19) ________ scheme combines the features of open ended and close ended schemes.

(A) Interval 

(B) Combine 

(C) Joint 

(D) Open-Close

20) In which funds, the return and risk are lower ?

(A) Income funds 

(B) Growth funds 

(C) Balanced funds 

(D) Money market mutual funds

21) The main objective of ...... funds is capital appreciation over the medium to long term.

(A) Income funds 

(B) Growth funds 

(C) Balanced funds 

(D) Money market mutual funds

22) Which of the following funds provide capital appreciation and regular income ?

(A) Income funds 

(B) Growth funds 

(C) Balanced funds 

(D) Money market mutual funds

23) Which funds provide high liquidity with low rate of return ?

(A) Income funds 

(B) Growth funds

(C) Balanced funds 

(D) Money market mutual funds

24) In which of the following funds, the securities are issued and traded in the domestic financial markets ?

(A) Domestic funds 

(B) Offshore funds

(C) Balanced funds 

(D) Income funds

25) Which fund attract foreign capital ?

(A) Income fund

(B) Growth fund 

(C) Balanced fund 

(D) Offshore fund

26) ............. funds mobilize resources from a particular geographical locality like a country or region.

(A) Income fund

(B) Growth fund 

(C) Domestic fund 

(D) Offshore fund

27) Which fund invest in core sectors like energy, IT, telecommunications, construction, etc.?

(A) Domestic fund 

(B) Sectoral fund 

(C) Offshore fund 

(D) Gilt fund

28) Give the full form of SWP.

(A) Saving Withdrawal Policy 

(B) Saving With Plan

(C) Saving Without Plan 

(D) Systematic Withdrawal plan

29) Which schemes are designed on the basis of tax policy with special tax incentives to investors?

(A) Sectoral Scheme 

(B) Tax saving scheme

(C) Equity linked saving scheme 

(D) None of these

30) Give the full form of ELSS.

(A) Equity-Linked Savings Scheme 

(B) Equity-Liability Saving Scheme

(C) Easy-Linked Saving Scheme 

(D) Both A & B

31) In which of the following scheme, the investor can claim an income tax benefits ?

(A) Sectoral 

(B) Tax saving scheme

(C) Equity linked saving scheme 

(D) Index funds

32) ........ funds are provided liquidity support by the Reserve Bank.

(A) Sectoral Fund 

(B) Gilt fund 

(C) Index fund 

(D) Domestic fund

33) .......... is a mutual fund which invests in securities in the index on which it is based BSE sensex or S & P CNX Nifty.

(A) Income fund 

(B) Growth fund 

(C) Gilt fund 

(D) Index fund

34) Give the full form of NAV.

(A) New Asset Value 

(B) Net Asset Value

(C) Net Assurance Value

(D) Net Accounting Value

35) ......... is the market value per unit of all the assets of the scheme.

(A) Net Asset Value of mutual fund scheme 

(B) Net Asset Value per unit

(C) Cost of Investment 

(D) Balance Sheet

36) ........... is a team of professionals & experts with the knowledge of investment activities.

(A) Sponcerer 

(B) Trust 

(C) Asset Management Company 

(D) Custodian

37) Which fund provides safety of investments and regular income to investors ?

(A) Income funds 

(B) Growth funds

(C) Balanced funds 

(D) Money Market Mutual Funds

CORPORATE SOCIAL RESPONSIBILITY

38) ............ is a continuous commitment made by business to behave ethically and contribute to the economic development of the society and nation.

(A) Responsibility 

(B) Social Responsibility

(C) Corporate Social Responsibility 

(D) None of these

39) Which of the following activity is included in corporate social responsibility policies ?

(A) Promotion of education

(B) Ensuring environmental sustainability

(C) Social Business projects 

(D) All of these

40) ............. is about how companies manage the business process to provide a overall positive impact on the society.

(A) Corporate Social Responsibility 

(B) Company’s Responsibility

(C) Financial Responsibility 

(D) National Responsibility

MCQS of company audit

(CA)

MCQS - UNIT 1

1. ........... of the Companies Act, 2013 lays down provisions regarding the eligibility of appointment of an auditor.

(A) Section 143

(B) Section 140

(C) Section 142

(D) Section 141

2. The main purpose of ........... of the ACl is to ensure that only a qualified person possessing the requisite professional knowledge and technical skills is appointed as an auditor.

(A) Section 142 (2)

(B) Section 141 (2)

(C) Section 141 (3)

(D) Section 141 (1)

3. The object of ........... is to ensure independence of the auditor.

(A) Section 141

(B) Section 142

(C) Section 143

(D) Section 140

4. A Person or his relative or partner is indebted to the company for an amount exceeding ............. is disqualified for the appointment of an auditor.

(A) Rs. 2,00,000

(B) Rs. 3,00,000

(C) Rs. 5,00,000

(D) Rs. 1,00,000

5. A person who has given guarantee in connection with indebtedness of third person for an amount exceeding ..........

(A) Rs. 2,00,000

(B) Rs. 1,00,000 

(C) Rs. 5,00,000 

(D) Rs. 3,00,000

6. A relative of the auditor may hold securities in the company of the face value not exceeding ..............

(A) Rs. 2,00,000

(B) Rs. 1,00,000 

(C) Rs. 3,00,000

(D) Rs. 5,00,000

7. Under ........... of the Act detailed provisions regarding appointment of statutory auditor has been laid out.

(A) Section 141 

(B) Sub-section (5) to sub -section

(C) Section 139

(D) Section 138

8. of section 139 contains provision with regard to .......... of auditor of a Government company

(A) Remuneration

(B) Removal

(C) Reappointment 

(D) Appointment

9. .......... provides the provisions of appointment of first auditor.

(A) Section 143 (1)

(B) Section 141(1) 

(C) Section 139 (5) 

(D) Section 139 (6)

10. First auditor is to be appointed by board of directors within ....... 30 days of registration of company.

(A) 90

(B) 30

(C) 60

(D) 45

11. First auditor is to be appointed by ..............

(A) CAG

(B) Central government 

(C) Board of Directors

(D) General body

12. If board of directors fail to appoint the first auditor then it will be appointed by ............

(A) Central government 

(B) Board of Directors 

(C) CAG

(D) General body

13. Members shall make the appointment within .......... days of receipt of information of failure of BOD to appoint first auditor.

(A) 90

(B) 30

(C) 60

(D) 45

14. Tenure of first auditor shall be from the date of appointment till the .........

(A) Conclusion of EGM

(B) Commencement of first AGM

(C) Commencement of Statutory meeting

(D) Conclusion of first AGM

15. If vacancy of auditor is caused due to resignation the ............ shall fill it

(A) Central government

(B) Board of Directors 

(C) CAG

(D) General body

16. If vacancy of auditor is caused due to resignation the member shall fill it within ............ three months of recommendation of board of directors at a general meeting.

(A) 30 days

(B) 90 days

(C) 3 months

(D) 1 month

17. If vacancy of auditor is caused due to any other reason other than resignation the .............. shall fill it

(A) Board of Directors 

(B) CAG

(C) General body 

(D) Central government

18. If vacancy of auditor is caused due to any other reason the BOD shall fill such a vacancy within .............

(A) 90 days

(B) 30 days

(C) 3 months

(D) 1 month

19. The subsequent auditor appointed by members shall hold office from the conclusion of that meeting till the conclusion of its .............. annual general meeting subject to ratification at every AGM.

(A) Fifth

(B) Next

(C) Third

(D) Sixth

20. The company shall obtain a written consent and a certificate as to the fulfillment of conditions laid under ............. form the auditor.

(A) Section 143

(B) Section 142

(C) Section 141

(D) Section 144

21. The company shall file notice with the Registrar about appointment of subsequent auditor Within _________ of the meeting.

(A) 30 days

(B) 45 days

(C) 15 days

(D) 10 days

22. Casual, vacancy, if caused due to resignation ___________shall fill it within _________ of recommendation of board of directors at a general meeting.

(A) the member, three months

(B) the member, two months

(C) the BOD, three months

(D) the BOD, two months

23. Casual vacancy, If caused due to any other reason ________shall fill such a vacancy within________ .

(A) the member, 30 days 

(B) the member, 60 days 

(C) the BOD, 30 days 

(D) the BOD, 60 days

24. Rotation of auditors has been made mandatory for __________

(A) listed companies, 

(B) unlisted companies with a share capital of more than Rs. 10 crores,

(C) both

(D) none

25. Rotation of auditors has been made mandatory for __________

(A) Unlisted companies, 

(B) Listed companies with a share capital of more than Rs. 10 crores,

(C) both

(D) none

26. Rotation of auditors has been made mandatory for ________

(A) all private companies with paid up capital of Rs. 20 crores or more

(B) all companies with public deposit of minimum of Rs. 50 crores or less

(C) Both

(D) None

27. Rotation of auditors has been made mandatory for _________

(A) all private companies with paid -up capital of Rs. 20 crores or less

(B) all companies with public deposit of Rs. 50 crores or less

(C) Both

(D) none

28. According to section 139 (2) of the Act Companies can appoint or reappoint individual auditor for not more than _________ term of __________ consecutive years.

(A) 1,5

(B) 5,1

(C) 2,5

(D) 5,2

29. According to section 139 (2) of the Act Companies can appoint or reappoint audit firm including Liability Partnership (LLP) for not more than __________ terms of ___________ Consecutive years.

(A) 1,5

(B) 5,1

(C) 2,5

(D) 5,2

30. Cooling off period for rotated individual auditor / audit firm including LLP is _______ year from the completion of the term.

(A) 4

(B) 5

(C) 3

(D) 2

31. Rotation of auditor in Banking & insurance companies as per RBI

(A) Every three years 

(B) Every five years 

(C) Every four years 

(D) Every year

32. Rotation of auditor in Banking & insurance companies as per IRDA

(A) Every three years 

(B) Every five years

(C) Every four years

(D) Every year

33. ____________years cooling off period is required in case of auditor in banking and insurance companies.

(A) 2

(B) 3

(C) 4

(D) 5

34. Appointment of first auditor of Government company shall be made by __________ within _________ of registration of the company

(A) CAG, 60 days

(B) Central Government, 60 days

(C) CAG, 30 days

(D) Central Government, 30 days

35. If CAG fails to appoint then ____________ shall appoint first auditor within __________

(A) CAG, 30 days

(B) Central Government, 30 days

(C) Board of directors, 30 days

(D) Members, 60 days

36. If Board fails to appoint the first auditor ___________ shall make the appointment of first auditor within __________ of information at an EGM.

(A) CAG, 60 days

(B) Central Government, 60 days

(C) Board of directors, 60 days

(D) Members, 60 days

37. Tenure of first auditor shall be from the date of appointment till the_________

(A) Conclusion of first AGM

(B) Commencement of first AGM

(C) Conclusion of Statutory meeting

(D) Commencement of Statutory meeting

38. Appointment of subsequent auditor of Government companies shall be made by _________ within ________days from the commencement of financial year.

(A) CAG, 180 days 

(B) Central Government, 180 days

(C) CAG, 60 days

(D) Central Government, 60 days

39. Casual vacancy auditor of a government companies shall be filled by ___________ within ________.

(A) CAG, 180 days

(B) Central Government, 180 days

(C) CAG, 30 days

(D) Central Government, 60 days

40. If CAG fails to fill the vacancy of Government Auditor then ____________ shall fill the vacancy within_____________.

(A) CAG, 180 days

(B) BOD, 30 days

(C) CAG, 30 days

(D) BOD, 60 days

41. Under Section 141 (3)(g) ceiling on number of audit in case of individuals is _____________.

(A) 10 companies 

(B) 20 Companies 

(C) 15 Companies

(D) 25 companies

42. Under Section 141 (3)(g) celling in case of partnership firm ____________.

(A) 10 companies per partner 

(B) 20 companies per partner 

(C) 40 companies 

(D) 60 companies

43. In case of first auditor appointed by the board of directors the remuneration is fixed by

(A) Board of Directors

(B) Shareholders in the general meeting

(C) Both

(D)None

44. In case of auditors appointed by the shareholders in general meeting the remuneration is fixed by

(A) Board of Directors 

(B) Shareholders in the general meeting

(C) Both 

(D) None

45. In case of auditors appointed by the CAG for government company the remuneration is fixed by

(A) Board of Directors 

(B) Shareholders in the general meeting

(C) Both 

(D) None

46. Auditors Remuneration includes __________

(A) Fees to auditor 

(B) Expenses, if any, incurred by the auditor in connection with the audit of the company

(C) Cost of any facility provided to the auditor 

(D) All of the above

47 Removal of auditors before expiry of his term shall require ____________ and __________.

(A) Ordinary resolution, previous approval of CAG

(B) Special resolution, previous approval of the Central Government

(C) Ordinary resolution, previous approval of the Central Government

(D) Special resolution, previous approval of CAG

48. The application to Central Government for the approval to remove the auditor before the expiry of his term has to be made within __________ of passing the board resolution.

(A) 30 days

(B) 60 days

(C) 1 month

(D) 2 month

49. The company shall pass a special resolution in a general meeting within __________ of receipt of approval of the Central Government to remove the auditor before the expiry of his term.

(A) 30 days

(B) 60 days

(C) 1 month

(D) 2 month

50. The auditor who has resigned from the company shall file within a period of ___________ from the date of resignation, a statement in the prescribed form with the company and ROC / CAG.

(A) 30 days

(B) 60 days

(C) 1 month

(D) 2 month

51. Tribunal may __________ order to change the auditor

(A) by itself

(B) on application by the Central Government

(C) on application by any concerned person 

(D) all of the above

52. If the application is made by CG for the removal of the auditor, then tribunal shall pass an order within ____________ of application.

(A) 10 days

(B) 15 days

(C) 30 days

(D) 1 month

53. In case of final removal order is passed by the tribunal then the auditor shall not be appointed for a period of ___________ in any other company.

(A) Five years

(B) Ten years

(C) Two years

(D) Three years

54. __________confers upon the auditor right of access at all times to books, accounts and vouchers of the company.

(A) Section 143(1)

(B) Section 143(3)

(C) Section 144(1)

(D) Section 144(3)

55. Which of the following services an auditor cannot render ?

(A) accounting and book keeping services

(B) internal audit

(C) both 

(D) None

56. Which of the following services an auditor cannot render ?

(A) design and implementation of any financial information system

(B) actuarial services

(C) both

(D) none

57. Which of the following services an auditor cannot render?

(A) investment advisory Services 

(B) investment banking services

(C) both

(D)n non

58. Which of the following services an auditor cannot render?

(A) rendering of outsourced financial services

(B) management services

(C) both

(D) none