{"id":7562,"date":"2021-10-05T22:33:17","date_gmt":"2021-10-05T17:03:17","guid":{"rendered":"https:\/\/scholarsclasses.com\/blog\/?p=7562"},"modified":"2025-10-08T16:44:01","modified_gmt":"2025-10-08T11:14:01","slug":"mcq-on-investment-accounting","status":"publish","type":"post","link":"https:\/\/scholarsclasses.com\/blog\/mcq-on-investment-accounting\/","title":{"rendered":"MCQ on Investment Accounting (Free) | AS 13"},"content":{"rendered":"\n<h2 class=\"wp-block-heading has-text-align-center\"><strong>MCQ on Investment Accounting<\/strong><\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"576\" data-src=\"https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/10\/MCQ-on-Investment-Accounting-1024x576.jpg\" alt=\"MCQ on Investment Accounting\" class=\"wp-image-7691 lazyload\" title=\"\" data-srcset=\"https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/10\/MCQ-on-Investment-Accounting-1024x576.jpg 1024w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/10\/MCQ-on-Investment-Accounting-300x169.jpg 300w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/10\/MCQ-on-Investment-Accounting-768x432.jpg 768w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/10\/MCQ-on-Investment-Accounting-1536x864.jpg 1536w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/10\/MCQ-on-Investment-Accounting-640x360.jpg 640w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/10\/MCQ-on-Investment-Accounting.jpg 1920w\" data-sizes=\"(max-width: 1024px) 100vw, 1024px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1024px; --smush-placeholder-aspect-ratio: 1024\/576;\" \/><figcaption class=\"wp-element-caption\">MCQ on Investment Accounting<\/figcaption><\/figure>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><a href=\"https:\/\/scholarsclasses.com\/blog\/financial-accounting-mcqs\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/financial-accounting-mcqs\/\" target=\"_blank\" rel=\"noreferrer noopener\">MCQs on other topics of Financial Accounting <\/a><\/strong><\/li>\n\n\n\n<li><a href=\"https:\/\/www.icsi.edu\/media\/webmodules\/modelquestionpaper\/CMA-MCQ%20100.pdf\" data-type=\"URL\" data-id=\"https:\/\/www.icsi.edu\/media\/webmodules\/modelquestionpaper\/CMA-MCQ%20100.pdf\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Cost Accounting MCQs pdf <\/strong><\/a><\/li>\n<\/ul>\n\n\n\n<p><strong>1. The investment intended to be held for less than <strong>_____ months is called _<\/strong>_____ investment as per AS\u201313.<\/strong><br>a) 12, current, <br>b) 12, annual <br>c) 12, long-term <br>d) 24, trade<\/p>\n\n\n\n<p><strong>2. The carrying amount of current investment is to be shown at <strong>_________ or _<\/strong>________ which ever is lower.<\/strong><br>a) face value of share <br>b) cost or market value <br>c) paid up value of share <br>d) none of the above<\/p>\n\n\n\n<p><strong>3. The interest due upto date of purchase is to segregated from total price of investment, if price is <strong>_<\/strong><\/strong>__________ .<strong><br><\/strong>a) fixed price <br>b) ex-interest <br>c) cum-interest <br>d) all types of<\/p>\n\n\n\n<p><strong>4. The interest on investment is to be calculated on <strong>_<\/strong>________ of investment.<\/strong><br>a) cost <br>b) number of value <br>c) lower of cost or market value <br>d) face value<\/p>\n\n\n\n<p><strong>5. AS\u201313 provides for accounting for investment in <strong>_______ or ___________<\/strong>.<\/strong><br>a) Deposit or advance<br>b) shares or debentures <br>c) none of the above<\/p>\n\n\n\n<p><strong>6. Cost of investment includes purchase price and <strong>_<\/strong>_______ .<br><\/strong>a) expenses <br>b) income <br>c) share<\/p>\n\n\n\n<p><strong>7. The brokerage and stamp duty paid at the time of purchase is <strong>_<\/strong>_________ .<\/strong><br>a) added to cost <br>b) ignored <br>c) none of the above<\/p>\n\n\n\n<p><strong>8. The brokerage is calculated on _________<strong>_<\/strong> price of investment.<\/strong><br>a) cost of price <br>b) fixed price <br>c) transaction <br>d) none of the above<\/p>\n\n\n\n<p><strong>9. The cost of investment sold is to be ascertained as per AS\u201313 <strong>_<\/strong>_________ method.<\/strong><br>a) FIFO <br>b) weighted average <br>c) LIFO <br>d) Sample average<\/p>\n\n\n\n<p><strong>10. The premium received on sale of Rights is credited to __________<strong>_<\/strong>.<\/strong><br>a) Capital Reserve A\/c <br>b) Investment A\/c <br>c) Profit &amp; Loss Account <br>d) none of the above<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Answers:<\/strong> <span class=\"has-inline-color has-vivid-red-color\">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 &amp; Loss Account<\/span><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><strong>11. In case of <strong>_<\/strong>________ interest due upto date of transaction is payable extra.<\/strong><br>a) cum-interest <br>b) fixed price <br>c) all type of <br>d) ex interest<\/p>\n\n\n\n<p><strong>12. The receipt of bonus shares is to be shown in <strong>_<\/strong>________ column of investment.<\/strong><br>a) cost price <br>b) number of bands <br>c) no. of shares <br>d) market value<\/p>\n\n\n\n<p><strong>13. The Investment Account is prepared in ________<strong>_<\/strong> column.<\/strong><br>a) one <br>b) six <br>c) two <br>d) three<\/p>\n\n\n\n<p><strong>14. The difference between cost of debentures and amount received on redemption is transferred to <strong>_<\/strong>_________ Account.<br><\/strong>a) Investment A\/c <br>b) Capital Reserve A\/c <br>c) Profit &amp; Loss Account <br>d) none of the above<\/p>\n\n\n\n<p><strong>15. Investment Account is debited for <strong>_<\/strong>_________ on sale of investment.<br><\/strong>a) profit <br>b) loss <br>d) none of the above<\/p>\n\n\n\n<p><strong>16. The dividend received for pre-acquisition period is credited to <strong>_<\/strong>_________ Account.<br><\/strong>a) Investment <br>b) Profit &amp; Loss Account <br>c) Capital Reserve A\/c <br>d) none of the above<\/p>\n\n\n\n<p><strong>17. <strong>The balance in interest column in Investment Account is transferred to _________<strong>_ <\/strong>.<\/strong><\/strong><br>a) Profit &amp; Loss Account <br>b) Capital Reserve A\/c <br>c) Investment A\/c <br>d) none of the above<\/p>\n\n\n\n<p><strong>18. Ex-interest price includes <strong>_<\/strong>_________ only.<\/strong><br>a) market value <br>b) face value <br>c) cost \/ value <br>d) none of the above<\/p>\n\n\n\n<p><strong>19. The value of shares allotted on conversion of debentures is credited in <strong>_<\/strong>_________ Account.<br><\/strong>a) Capital <br>b) Profit &amp; Loss Account <br>c) Investment A\/c <br>d) Debentures<\/p>\n\n\n\n<p><strong>20. The right shares are shown in investment only when right is __________<strong>_<\/strong>.<\/strong><br>a) Purchased <br>b) Exercsised \/ Accepted <br>c) not accepted <br>d) none of the above<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Answers:<\/strong> <span class=\"has-inline-color has-vivid-red-color\">11)ex interest  12)no. of shares  13)three  14)Profit &amp; Loss Account  15)profit  16)Investment  17)Profit &amp; Loss Account  18)cost \/ value  19)Debentures  20)exercised \/ accepted<\/span><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><strong>21. Cost of investment includes purchase price and <strong>_<\/strong>_________.<\/strong><br>a) stamp duty <br>b) purchase price <br>c) brokerage <br>d) none of the above<\/p>\n\n\n\n<p><strong>22. Interest is always calculated on __________ of securities.<\/strong><br>a) cost <br>b) number of bands <br>c) market value <br>d) face value<\/p>\n\n\n\n<p><strong>23. Interest is paid to the holder on due date irrespective of his <strong>_<\/strong>_______ period of holding.<\/strong><br>a) current <br>b) actual <br>c) more <br>d) none of the above<\/p>\n\n\n\n<p><strong>24. Dividend on shares accrues on the date of <strong>___________ <\/strong>.<br><\/strong>a) due date <br>b) date fixed in advance <br>c) last day of the year <br>d) declaration,<\/p>\n\n\n\n<p><strong>25. Dividend is paid to the holder of shares on the date of _________<strong>_<\/strong> irrespective of actual period of holding.<\/strong><br>a) declaration<br>b) actual <br>c) current <br>d) book closure<\/p>\n\n\n\n<p><strong>26. Equity share is a <strong>_<\/strong>________ income bearing security.<br><\/strong>a) Fluctuating <br>b) Fixed income <br>c) Safe security <br>d) none of the above<\/p>\n\n\n\n<p><strong>27. Interest is always calculated on _________ of the security.<\/strong><br>a) Face Value <br>b) Market value <br>c) cost of value <br>d) none of the above<\/p>\n\n\n\n<p><strong>28. As per AS 13 on sale of investment profit or loss is calculated by deducting _________ of investment from sales.<\/strong><br>a) Simple average cost <br>b) cost of shares <br>c) W.A. cost <br>d) none of the above<\/p>\n\n\n\n<p><strong>29.Profit on sale of investment is transferred to <strong>_<\/strong>_________ A\/c.<\/strong><br>a) Profit and Loss A\/c <br>b) Investment A\/c <br>c) Capital Reserve A\/c <br>d) none of the above<\/p>\n\n\n\n<p><strong>30. Current investments are valued at cost or M.V. whichever is __________<strong>_<\/strong>.<br><\/strong>a) less <br>b) added <br>c) ignored <br>d) none of the above<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Answer:<\/strong><span class=\"has-inline-color has-vivid-red-color\"><strong> <\/strong>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<\/span><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><strong>31. Sale proceeds of rights shares is credited to <strong>_<\/strong>__________ A\/c.<br><\/strong>a) Capital Reserve A\/c <br>b) Profit and Loss A\/c <br>c) Investment A\/c <br>d) none of the above<\/p>\n\n\n\n<p><strong>32. In the case of cum interest price cost of acquisition is cum interest price less __________<strong>_ <\/strong>.<br><\/strong>a) due date <br>b) actual period <br>c) Interest for expired period <br>d) none of the above<\/p>\n\n\n\n<p><strong>33. On sale of equity shares the equity shares A\/c is credited by <strong><em>____________<\/em><\/strong>.<\/strong><br>a) Net sale proceeds <br>b) none of the above<\/p>\n\n\n\n<p><strong>34. <strong>_<\/strong>_________ shares received increase Nominal Value of shares held.<\/strong><br>a) Bonus <br>b) equity <br>c) cost <br>d) none of the above<\/p>\n\n\n\n<p><strong>35. Investments intended to be held for less than 12 months is called <strong>_<\/strong>________ investment.<\/strong><br>a) annual <br>b) current <br>c) long-term <br>d) trade<\/p>\n\n\n\n<p><strong>36. Fixed return bearing investment are _________<strong>_<\/strong>.<\/strong><br>a) equity shares <br>b) debentures <br>c) jewellery <br>d) machinery<\/p>\n\n\n\n<p><strong>37. The requirements regarding investment are specified in AS <strong>_<\/strong>___________ .<\/strong><br>a) 3 <br>b) 11 <br>c) 13 <br>d) 14<\/p>\n\n\n\n<p><strong>38. Rights shares are offered in ratio of <strong>____________ <\/strong>.<br><\/strong>a) number shares held <br>b) cost of shares <br>c) face value of shares <br>d) paid up value of share<\/p>\n\n\n\n<p><strong>39. The cost of investment sold is to be calculated as per <strong>_<\/strong>_________ Method.<br><\/strong>a) FIFO <br>b) LIFO <br>c) Weighted Average <br>d) Simple Average<\/p>\n\n\n\n<p><strong>40. The interest up to the date of transaction is paid in addition to the price in case of <strong>_<\/strong>__________ quotation.<\/strong><br>a) cum-interest <br>b) ex-interest <br>c) fixed price <br>d) all types of<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Answer:<\/strong><span class=\"has-inline-color has-vivid-red-color\"><strong> <\/strong>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<\/span><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><strong>41. The interest on bonds is to be calculated on <strong>_<\/strong>__________.<br><\/strong>a) cost <br>b) face value <br>c) number of bands <br>d) market value<\/p>\n\n\n\n<p><strong>42. The carrying amount of current investment is to be shown at <strong>_<\/strong>____________ .<br><\/strong>a) face value <br>b) cost <br>c) market value <br>d) lower of cost or market value<\/p>\n\n\n\n<p><strong>43. Each side of Investments Account have <strong>_<\/strong>________ columns of amount.<\/strong><br>a) 2 <br>b) 3 <br>c) 4 <br>d) 1<\/p>\n\n\n\n<p><strong>44. The carrying amount of long-term investment is to be shown at <strong>_<\/strong>___________ .<\/strong><br>a) cost <br>b) face value <br>c) market value <br>d) paid up value<\/p>\n\n\n\n<p><strong>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 <strong>_<\/strong>_________.<\/strong><br>a) Rs 9,600 <br>b) Rs 9,700 <br>c) Rs 10,300 <br>d) Rs10,000<\/p>\n\n\n\n<p><strong>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_____.<br><\/strong>a) 175<br>b) 525 <br>c) 325 <br>d) 350<\/p>\n\n\n\n<p><strong>47. Y Ltd. purchased 10,000 shares @ Rs 12 each and paid brokerage @ 2% The cost of acquisition is <strong>_<\/strong>________.<br><\/strong>a) Rs 1,20,00 <br>b) Rs 2,400 <br>c) Rs 1,22,400 <br>d) Rs 1,25,000<\/p>\n\n\n\n<p><strong>48. Z Ltd. purchased 10,000 shares of Rs <code>10 each at<\/code> Rs 25 per share of A Ltd. during the year 2017-18. During the year 2017\u201318, 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 <strong>_<\/strong>.<br><\/strong>a) Rs 2,50,000<br>b) Rs 1,00,000 <br>c) Rs 2,50,000 <br>d) Rs 3,50,000<\/p>\n\n\n\n<p><strong>49. Long-term investments are carried out at <strong>__________ <\/strong>.<br><\/strong>a) cost <br>b) fair value <br>c) market value <br>d) cost or market value whichever is less<\/p>\n\n\n\n<p><strong>50. Short-term investments are carried at _________<strong>_<\/strong>.<br><\/strong>a) market value <br>b) cost <br>c) cost or market value whichever is less <br>d) none of the above<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Answer:<\/strong><span class=\"has-inline-color has-vivid-red-color\"><strong> <\/strong>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<\/span><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#46;&#46;&#46;<\/p>\n","protected":false},"author":1,"featured_media":7691,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,7],"tags":[3073],"class_list":["post-7562","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bcom","category-degree-college","tag-mcq-on-investment-accounting"],"_links":{"self":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts\/7562","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/comments?post=7562"}],"version-history":[{"count":3,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts\/7562\/revisions"}],"predecessor-version":[{"id":39556,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts\/7562\/revisions\/39556"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/media\/7691"}],"wp:attachment":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/media?parent=7562"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/categories?post=7562"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/tags?post=7562"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}