MCQ on Investment Accounting (Free) | AS 13
MCQ on Investment Accounting
1. The investment intended to be held for less than _____ months is called ______ investment as per AS–13.
a) 12, current,
b) 12, annual
c) 12, long-term
d) 24, trade
2. The carrying amount of current investment is to be shown at _________ or _________ which ever is lower.
a) face value of share
b) cost or market value
c) paid up value of share
d) none of the above
3. The interest due upto date of purchase is to segregated from total price of investment, if price is ___________ .
a) fixed price
b) ex-interest
c) cum-interest
d) all types of
4. The interest on investment is to be calculated on _________ of investment.
a) cost
b) number of value
c) lower of cost or market value
d) face value
5. AS–13 provides for accounting for investment in _______ or ___________.
a) Deposit or advance
b) shares or debentures
c) none of the above
6. Cost of investment includes purchase price and ________ .
a) expenses
b) income
c) share
7. The brokerage and stamp duty paid at the time of purchase is __________ .
a) added to cost
b) ignored
c) none of the above
8. The brokerage is calculated on __________ price of investment.
a) cost of price
b) fixed price
c) transaction
d) none of the above
9. The cost of investment sold is to be ascertained as per AS–13 __________ method.
a) FIFO
b) weighted average
c) LIFO
d) Sample average
10. The premium received on sale of Rights is credited to ___________.
a) Capital Reserve A/c
b) Investment A/c
c) Profit & Loss Account
d) none of the above
| Answers: 1)12, current 2)cost or market value 3)cum-interest 4)face value 5)shares or debentures 6)expenses 7)added to cost 8)transaction 9)weighted average 10)Profit & Loss Account |
11. In case of _________ interest due upto date of transaction is payable extra.
a) cum-interest
b) fixed price
c) all type of
d) ex interest
12. The receipt of bonus shares is to be shown in _________ column of investment.
a) cost price
b) number of bands
c) no. of shares
d) market value
13. The Investment Account is prepared in _________ column.
a) one
b) six
c) two
d) three
14. The difference between cost of debentures and amount received on redemption is transferred to __________ Account.
a) Investment A/c
b) Capital Reserve A/c
c) Profit & Loss Account
d) none of the above
15. Investment Account is debited for __________ on sale of investment.
a) profit
b) loss
d) none of the above
16. The dividend received for pre-acquisition period is credited to __________ Account.
a) Investment
b) Profit & Loss Account
c) Capital Reserve A/c
d) none of the above
17. The balance in interest column in Investment Account is transferred to __________ .
a) Profit & Loss Account
b) Capital Reserve A/c
c) Investment A/c
d) none of the above
18. Ex-interest price includes __________ only.
a) market value
b) face value
c) cost / value
d) none of the above
19. The value of shares allotted on conversion of debentures is credited in __________ Account.
a) Capital
b) Profit & Loss Account
c) Investment A/c
d) Debentures
20. The right shares are shown in investment only when right is ___________.
a) Purchased
b) Exercsised / Accepted
c) not accepted
d) none of the above
| Answers: 11)ex interest 12)no. of shares 13)three 14)Profit & Loss Account 15)profit 16)Investment 17)Profit & Loss Account 18)cost / value 19)Debentures 20)exercised / accepted |
21. Cost of investment includes purchase price and __________.
a) stamp duty
b) purchase price
c) brokerage
d) none of the above
22. Interest is always calculated on __________ of securities.
a) cost
b) number of bands
c) market value
d) face value
23. Interest is paid to the holder on due date irrespective of his ________ period of holding.
a) current
b) actual
c) more
d) none of the above
24. Dividend on shares accrues on the date of ___________ .
a) due date
b) date fixed in advance
c) last day of the year
d) declaration,
25. Dividend is paid to the holder of shares on the date of __________ irrespective of actual period of holding.
a) declaration
b) actual
c) current
d) book closure
26. Equity share is a _________ income bearing security.
a) Fluctuating
b) Fixed income
c) Safe security
d) none of the above
27. Interest is always calculated on _________ of the security.
a) Face Value
b) Market value
c) cost of value
d) none of the above
28. As per AS 13 on sale of investment profit or loss is calculated by deducting _________ of investment from sales.
a) Simple average cost
b) cost of shares
c) W.A. cost
d) none of the above
29.Profit on sale of investment is transferred to __________ A/c.
a) Profit and Loss A/c
b) Investment A/c
c) Capital Reserve A/c
d) none of the above
30. Current investments are valued at cost or M.V. whichever is ___________.
a) less
b) added
c) ignored
d) none of the above
| Answer: 21)brokerage 22)face value 23)actual 24)declaration, 25)book closure 26)Fluctuating 27)Face Value 28)W.A. cost 29)Profit and Loss A/c 30)less |
31. Sale proceeds of rights shares is credited to ___________ A/c.
a) Capital Reserve A/c
b) Profit and Loss A/c
c) Investment A/c
d) none of the above
32. In the case of cum interest price cost of acquisition is cum interest price less ___________ .
a) due date
b) actual period
c) Interest for expired period
d) none of the above
33. On sale of equity shares the equity shares A/c is credited by ____________.
a) Net sale proceeds
b) none of the above
34. __________ shares received increase Nominal Value of shares held.
a) Bonus
b) equity
c) cost
d) none of the above
35. Investments intended to be held for less than 12 months is called _________ investment.
a) annual
b) current
c) long-term
d) trade
36. Fixed return bearing investment are __________.
a) equity shares
b) debentures
c) jewellery
d) machinery
37. The requirements regarding investment are specified in AS ____________ .
a) 3
b) 11
c) 13
d) 14
38. Rights shares are offered in ratio of ____________ .
a) number shares held
b) cost of shares
c) face value of shares
d) paid up value of share
39. The cost of investment sold is to be calculated as per __________ Method.
a) FIFO
b) LIFO
c) Weighted Average
d) Simple Average
40. The interest up to the date of transaction is paid in addition to the price in case of ___________ quotation.
a) cum-interest
b) ex-interest
c) fixed price
d) all types of
| Answer: 31)Profit and Loss A/c 32)Interest for expired period 33)Net sale proceeds 34)Bonus 35)current 36)debentures 37)13 38)number shares held 39)Weighted Average 40)ex-interest |
41. The interest on bonds is to be calculated on ___________.
a) cost
b) face value
c) number of bands
d) market value
42. The carrying amount of current investment is to be shown at _____________ .
a) face value
b) cost
c) market value
d) lower of cost or market value
43. Each side of Investments Account have _________ columns of amount.
a) 2
b) 3
c) 4
d) 1
44. The carrying amount of long-term investment is to be shown at ____________ .
a) cost
b) face value
c) market value
d) paid up value
45. On 1st July, 2008; Jayshree Ltd. purchased 100 of its own 12% debentures for a price of Rs 9,900 which is cum interest price. Interest is paid on 30th September and 31st March every year. The acquisition cost of 100 debentures is __________.
a) Rs 9,600
b) Rs 9,700
c) Rs 10,300
d) Rs10,000
46. Rajashree Ltd. holds 14% debentures of the face value of Rs 5,000 in RJ. Ltd. Interest is payable on 30th June and 31st December every year. The debentures were purchased on 1st July, 2017. Accounts are closed on 31st March every year. The accrued interest on 31st March, 2018 was_____.
a) 175
b) 525
c) 325
d) 350
47. Y Ltd. purchased 10,000 shares @ Rs 12 each and paid brokerage @ 2% The cost of acquisition is _________.
a) Rs 1,20,00
b) Rs 2,400
c) Rs 1,22,400
d) Rs 1,25,000
48. Z Ltd. purchased 10,000 shares of Rs 10 each at Rs 25 per share of A Ltd. during the year 2017-18. During the year 2017–18, A Ltd. offered rights issues at one share for every two shares held at a price of Rs 20 per share. Right shares were subscribed. The carrying cost of investment is _.
a) Rs 2,50,000
b) Rs 1,00,000
c) Rs 2,50,000
d) Rs 3,50,000
49. Long-term investments are carried out at __________ .
a) cost
b) fair value
c) market value
d) cost or market value whichever is less
50. Short-term investments are carried at __________.
a) market value
b) cost
c) cost or market value whichever is less
d) none of the above
| Answer: 41)number of bands 42)lower of cost or market value 43)3 44)cost 45)9,600 46)175 47)1,22,000 48)3,50,000 49)cost 50)cost or market value whichever is less |
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