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 |
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