MCQ on Investment Accounting (Free) | AS 13

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