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    Cma June 24 Answers

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    Cma June 24 Answers

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    luckyagarwal.ra56
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    CMA Answer key

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    CMA JUNE 24 ANSWERS

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    Cma June 24 Answers

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    CORPORATE & MANAGEMENT ACCOUNTING JUNE 2024 PAPER (SECTION B) PARI 1. incase ofthe issue of debentures as collateral securities the holder is entitled to in gage of te Mans ac wil a terest on debentures received aa collateral securities Biers: ce eae Gniye but mot on debentures recived as collateral securities ‘No interest on loans, but interest only on debentures received as collateral securities wane ateest on laans nor interest on debentures received as colateral securities a cream pas nt rng a 5 Secu, epi 208 mai Sn ig a ei eps td Sate ey ilk nope ee beri tepr nec ie arvameceemeses ees span 3, Premium on redemption of debentures is : (A) Suspense A/e Real A/c mersonal A/e (B) Nominal A/c 4 A ltd. is a company in which Mr. X is working as Managing Director, 120 Betis eee Ebyece, including 10 airccots, 75 umtactual emplovess, and 2 Independent directors. The company wants to issue debentures under the Employees Sock Option. To whom company can iseue devant ‘under this scheme? (aT all the 200 employees 1. Managing Director, Permanent Employees, Contractual Employees and Independent Directors dhe Managing Director, Permanent Employees and Contractual labours ™To the Managing Director and to the Permanent Employees only {D) Debentures cannot be issued under the Employees Stock Option Scheme 5. Which of the following statements is true? ‘e company shall not convert its existing equity share capital with voting rights into ‘equity share capital carrying differential voting rights and vice versa, (b) The total number of shares alloted with differential rights need not be disclosed in the Board's Report (@) The holders of the equity shares with differential rights shall not enjoy all other rights such as bonus shares, rights shares etc. (0) Since the detailo of all the shareholders are therc in the register of members there is since ti to contain the relevant particulars of the issue of shares with differential rights 6. A company issued a prospectus inviting applications for, 2,00,000 equity shares of £100 each, The whole issue was, nderwritten by three underwriters : A~ 1,00,000 shares. $0,000 shares and C 40,000 shares. Applications were received for 1,60,000 shares, “ot which marked applications were A~ 76,000 shares, B- 40,400 shares, C= ‘33,600. The Tiability of the underwriters will be leo ond «= occa = 30 OO "A ~ 24,000; B~ 29,600; C- (3,600) y (74 po youdd —ia3409) = 16,000; B ~ 24,000; C - Nil A= 16.000: 8 24.000 FS son) A_(0) [sod __L1seeh TDA - 1,00,000; B- 70,000; C-30,000 ~ [4beR Tee oD ees dove di 7, These reports complete the fundamental piirpose of financial accounting by providing information that is helpful in the financial decision-making process, (a) Trial Balance, Income Statement, Balance Sheet, Statement of Stockholders Equity (6) Income Statement, Balance Sheet, Statement of Stockholders Equity, Statement of ind Flow (Dheome Statement, Balance Sheet, Statement of Stockholders Equity, Statement of ‘Cash Flow ()Income Statement, Balance Sheet, Statement of Stockholders Equity. Statement of Receipt and Payment 8. Which of the following options are INCORRECT? A Reserv (@) an appropriation on the profit {i} is created to cover a Jsnawm-liability or expected future loss (ii) is @ charge against the profit (iv) |_is meant to strengthen the financial position of the company (4) Both (i) and (ii) (©) Both (ii) and (iv) Both (ii) and (iv) joth (il) and (iii) crore or more, and Turnover of 21,000 crore ut inure and a more during the immediately preceding financial year or Turnover of 1,000 crore or more or a net ‘diately preceding financial year (0) eas 4 net worth of 2500 crore or more, or Turnover of €100 crore on more or a net Tihs of £5 crore or more during the immediately preceding financial year ()Ichas a net worth of 8500 crore or more, and Turnover of €100 earns more and a net Profit of %5 crore or more during the immediately preceding financial year 210,000, inventory increased by %6,000 and Trade Receivables increased by %15,000. The jount of cash flow from operating activities using the indirect method will be : 1,69,000 ne 92 008 }) 21,75,000 - Tr (loeee) {C) 21,79,000 = Dow 6 200) (0)%1,84,000 i 157") Wana Hior tne accounting period beginning on or after Ist April 3019, NBFCs will be required to llow Ind ASs if: (Aimed NBFCs having a net worth of &500 crore or more, for unlisted NBFCs with a net Worth of €250 erore or more, and Holding, Subsidiary, joint venture and associate companies of these companies (6) listed NBFCs having a net worth of 2500 erore or more, for unlisted NBFCs with a net Ra sof £200 crore or more, and Holding, Subsidiary, joint venture ard atcenet companies of these companies (C) Listed NBFCs having a net worth of £250 crore or more, for unlisted NBFCs with a net Worth of %200 crore or more, and Holding, Subsidiary, joint venture ard associate companies of these companies (©) Listed NBFCs having a net worth of £250 crore or more, for unlisted NBFCs with a net Coram fie, OF more, and Holding, Subsidiary, joint venture and asncene ‘companies of these companies 12.When an entity provides gous ur services to customers at a Price or rate that is subject to Tate regulation is known as : (A) Regulatory Pair Value Regulatory Revenue @rctaiy Deferred Accounts Balance )) Regulatory Revenue Expenditure iL 13, Provides explanation about inventories of service providers “0 Bincasa (Caso (D) Ind as 27 15.in case of the purchase of debentures in the open market for immediate cancellation, if there is any diflerence between the nominal value of the debentures cancelled and the price paid for them, the same has to be treated as, Profit or Loss on cancellation pital Reserve ) Revenue Rese ve {D) Capital Loss 16.When a company purchases its own shares out of free eserves, then & sum equal to the A Cait of the shares so purchased shall be transferred to thes Capital Reserve Account spital Redemption Reserve Account ) General Reserve Account {D) Profit and Loss Account Interest Account (C) Debited to the Consolidated Profit and Loss Account and credited to the Capital Reserve Account 18.8 Lid, sectires 2% of the equity shares of § Ltd. on 1-4-2023, On that date, the paid-up Sepia OLS Ltd! was 20,000 equity shares of €100 each; the acca reserve balance Tea, £10400,000. H Ld. paid £26,00,000 to acquire 75% interest mee fe Assets of S Ea, were revalued on 1-4-2029 and a revaluation meek SOU OOD os ascertained. The {A Copal Reserve £425,000 GF eg saa Ss © 5, js00000 Capital Reserve €3,50,000 Ro qsc0e . {D) Gnetwtt %2,50,000 oe 4, Revlee (75000) 21750 2.5000 cot oemctale O Paid-up share Gay cerbre or more or having Geren ‘£300 crores or mote are required to appoint t least one-woman director ) at least one independent director (©) at least § directors (D) No need to require a woman director 20.$karcholder value added is : « operating profit after tax-Cost of capital ipsa } Net operating profit before tax-Cost of capital oo ger me, ‘Dis (C) Net operating profit after tax + Cost of capital (D) Net operating profit after tax-WACC 21, Following is the information of ABC Limited: Te Beene Capital ~ £1,200 lak} L= EBT = | Good, ~ 12% Debenture ~ 2600 lakhs F “eet - oer eDe A Financial Leverage 1.5 times | Se — Be OR ae a al, Bit 7a Evais: (O)nopats - (A) 2216 ‘ = \o8 = EB)T b= (eisi2 «== 2ib “$07, bSeBIT = los=E8IT Dey. 264.8 f BBir= 18 og, sham Geers e lene Cisse the) % 127) 22.Pasfits are meant for shareholders whereas value added is meant for : itakeholders EVAS |s}2- ) Shareholders 2b (C) Managers = 4. (D} Directors 4-5) 28.To establish principles for reporting financial information, about the different types of eel i ye services an enterprise produces and the different geographical Gees ti ich it operates, This is the objective of: \ccounting Standard ~ 17 (Segment Reporting) Accounting Standard ~ 25 (Interim Financial Reporting) (C) Accounting Standard — 27 (Financial Reporting of Interests in Joint Ventures) (©) Accounting Standard — 29 (Provisions, Contingent Liabilities and Contingent Assets) 24.The objective of Accounting Standard — 23 (Accounting for Investuients in Associates in Consolidated Financial Statements) is : (A) to prescribe the minimum content of an interim financial report and to prescribe the Principles for recognition and measurement in complete of condensed. fineatal ‘Statements for an interim period (8) to ensure that appropriate recognition criteria and measurement bases are applied to Provisions and contingent liabilities and that sufficient information is discloses in the and aoane Mancial statements to enable users to understand theit nature, timing and amount Operating result of a group () Accounting for investments in the financial statements of enterprises and related disclosure requirements 25.The focus of the IFRC Advisory Council is to provide strategic support and advice to the IFRS Foundation, and it meets in + (A) New York at least once a year for a period of two days (B) London at least once a year for a period of two days. New York at least twice a year for a period of two days umes at least twice a year for a period of two days 26.The total number of members normally the Australian Accounting Standards Board (AASB) has: {A) 10 membere (excludiuig the Chair) (B) 10 members (including the Chair) 12 members (excluding the Chair) 3 12 members (including the Chair) 27-The International Public Sector Accounting Standards Board's (PSASB) structure and Processes are facilitated by the ; uernational Federation of Accountants (IFAC) Financial Reporting Council (FRC) () Buropean Financial Reporting Advisory Group (BFRAQ) 26-The following are the extracts of the current Habilties of a limited liability company: 3 International Accoiinting Bodies & -2022 Provision for on 50,000 trade denn 65000 was paid during the year The emount oF povaiow ox taxation made during the year is rovers (A) %40,000 ies uel 1000 (8) 60,000 % $0 780,000 CB seo PSL [qooeo) 90,000 Oreo ne. 29 Bie focus of AS-20 is on denomindtion of the © nurses ealouuaton ‘Barniagn Per Share 3) Lease (C) Market Price Per Share (©) Taxes on Income ena! al rat of wok €20 te an x comminan of 10 on ae pay to the agent. Calculate Net Reaiable vale ah or 4 (a) 212 lake 2 Vale = selling. © We12 lk WRU = Expected Sie 4 mg Eup 226 lakhs = 20 p0p00 = Io Gas = hee SOS Ractive lar as claios opus (a) Paes ea (2) Minisoy ofa NCLT Ministry of Corporate Affairs im Terenas the economic profits generated by a business above and S geuimum return required by all providers of capital. Shareholder Value Added (SVA) Economic Value Added (EVA) (C) Market Value Added (MVA) (D) Debenture-holders Value Added (DVA) 32. 99.CSR stands fF sccenins (A) Company Social Responsibility Corporate Social Rights Social Responsibility ‘Company Suvial Rights 4 Mich Ps of commie io not required to be formed fr compliance with provisions of poral Governance under the Compas As, 2019 aed Sent eB @is Commuttes 35.Pre acquisition dividend received hy Holding Company is credited to (a) Prot & Loss A/e PEERS sae. (D) Revenue Profit 36. Holding Company holds more than ............«. voting power in subsidiary company. (A) 25% 40% 50% ) 75% 37 Fiag net profit on forfeiture and reissue of equity shares is transferred to . Birra Reserve (B) General Reserve (C) Dividend Equalization Reserve (D) Revaluation Reserve 8.Final Accounts of companies are prepared according to 2013. (A) Schedule VI (B) Schedule V 2) Schedule I Schedule I .- of the Companies Act, 99.Sule of copyright is concerned with cash flow from .. (A) Operating activities Financing activities Investing activities ) Revenue activities 40:4 person who undertakes to take up the whole or a portion of the offered shares or debentures as may not be subscribed far by the public is called nn” (A) Writer (B) Share writer (G| Broker e. 41-As per SEBI Regulations, the merchant banker shall underwrite at least ... itself or jointly with other merchant bankers associated with the issue (A) 15% of issue size (B) 10% of issue size (C) 25% of issue size 5% of issue size 42, Under ESOS employees are given an option to purchase shares at ... (A) On the spot Later date i.c. after vesting period Relevant date (D) Later date i.e. after end of accounting year 49.1 interest on calls-in-advance is not mentioned in the articles then the rate must be ited by the Board of Directors subject to a maximum of 12% p.a. as pers ‘Table A of the Companies Act 2013 Table D of the Companies Act 2013 (C) Table F of the Companies Act 2013 (D) Table G of the Companies Act 2013 44-Sagar Ltd. purchased a machinery worth 1,20,000 and building worth %2,00,000 from Radha Lid, for an agreed purchase consideration of €3,00,000 to be eatieiect by the issue 23,000, 10% debentures of €100 each. Calculate the amount to be tranchared to Capital 8 20,000 = 300008 p00 eee, () 30,000 (D) 40,000 4S instalment of principal amount of long term loan payable within next 12 months is shown tae Balance Shect of a company under the heading... (A) Non-current assets Non-current liabilities Current liabilities 40.4 special bani account with schedule bank is to be opened if buyback of shares is given: (A) Within 15 days from the closure of the offer (B) Within 10 days from the closure of the offer 47-A company may allot fully paid shares to promoters or any other paity for the services rendered Uy them, share capital account is Gredited endl sore debited, Preliminary expenses account ‘oodwill account ) Capital reserve account (D) Suspense account 48.The following is not an advantage of Double entry system: (A) It prevents and minimizes frauds Helps in decision-making The trial balance doesn't disclose certain types uf errors It becomes easy for the Government to calculate the tax 49-04 the time of forfeiture of shares, the share capital account will be... (4) Debited with paid up value of shares forfcited postitea with called up value of shares forfeited (C) Debited with face value of shares forfeited (D) Debited with issue price of shares forfeited 50-This Standard deals with the preparation of financial statements on a going concern basis, aaing, the accrual basis of accounting, materiality and aggregates fone offsetting of itorscant labilities or income and expenses, frequency of reporting, comparative {aformation, and consistency in presentation or classificdinn Ind AS—1 Ind AS 2 (C)Ind aS~ 3 (D)Ind as-6 51-The Amount available for distribution to owners at the time of closure of business after Payment of all liabilities, Capital Drawings (D) Investments 52.4 Durchased goods for the list price of 60,000 with a trade discount @ 20% and cash count @ 59%. A paid 40% on the date of purchase. The amount of cask doce ane cn be (4) 812,000 2 60000 ~ 207, = 4g 00. a Mite Trvele pias 6 NmEE, Sone Co Die = (GRECO 4 4 0% oo/— Representative Personal Account ‘Tangible Real Account (C) Intangible Real Account (D) Nominal Account 54. Purpose of Trial Balance To sere as evidence of the fact that the double entry has been completed in respect of every transaction (8) The accounts containing debit balances are written on the debit column, and those with credit balances are written on the credit column {C) To divide the work easily (D)To fix the responsibilities es Payable A/c is an example of : ) 55.If the turnover of a company is Rs, Hundred crore or more then these companies can round off: (A) To the nearest tens, hundreds, thousands, lalths or millions, or decimals thereof To the nearest hundreds, thousands, lakhs or millions, or decimals thereof ‘70 the nearest lakhs, millions or crores, or decimals thereof } To the nearest millions or crores, or decimals thereof 50.% Tid paid <20 Lakh as advance to the vendor to install a Hydro Power Plant. This Ord aaa t® be disclosed in the balance sheet as per Schedule Ill of the Companies Act, 13 under: Geom Loans and Advances Capital Work-in-Progress (C} Current Assets (D) Miscellaneous Expenses Sv-This ‘share capital in respect of dividend, in addition to the preferential right to the Payment of dividends, has the right to participate, whether fully or to a limited extent, Deemed Preference Share Capital Cumulative Preference Share Capital (D) Non-Convertible Preference Share Capital (Bieent Share Capital ) 58.4 company has 10,00,000 equity shares of £100 each. The company wants to buyback 1,00,000 equity shares from the market. For this (A) Special resolution is required to be passed in the general meeting as the buyback ie only 10% of the outstanding share capital (8) Ordinary resolution is required to be passed in the board meeting as the buyback does not exceed 10% of the outstanding share capital No need to pass any resolution as the buyback fs less than or equal to 10% of the outstanding equity share capital () Ordinary resolution is required to be passed in the annual general meeting as the buyback is equal to 10% of the outstanding share capital 59.Employees Stock Option Scheme must be: QQ sencionea by Special Resolution & don't include Independent Director alsa Sanctioned by Ordinary Resolution & don’t include Independent Director also {C) Sanctioned by Special Resolution & include Independent Director also (D) Sanctioned by Ordinary Resolution & include Independent Director also 60.4 Ltd. has 20,00,000 outstanding equity shares of €100 each. What is the provision for Tag sate of sweat equity shares and how many sweat equity shares can be issued by A Ltd? of the outstanding equity shares capital in a year or 2 crore weh .Altd. can iesue €2 crore equity shares a8 sweat equite PART— 11 Inder absorption costing the stocks are valved at the tal Gost ) the variable cost (G) the fixed cose (©) the semi-variable cost 62, Dises Maiera’——— 2 zee rh Diet Labour @ F10perhour wap LH= 22 = Variable overheads 220 t [Seling price — [———s100 fad eaa US are the Key aor, what iste consbution per eo Combibutin = 100 =o -2e—25 80 (D)t40 Conbribubro pr LH = lo fon 6a 19 of valuation are: ‘Asset Approach, Income Approach and Market Approach (B) Asset Approach and Income Approach (6) Asset Approach and Market Approach (D) Income Approach and Market Approach 64. An investor wants to invest in an equity share of ABC Ltd, The company's, was $40 per share and the dividend payout ratio is 35%. The sequen rate of return from eon ns BO The Ey of equity is: ua @DL oe (4e¥SE) hla, ae ee A ©5_Djluted earnings per share shall be calculated: Py dividing profit or loss attributable to ordinary equity holders of the entity (P) by dividing profit or loss attributable to ordinary equity holders of the entity Gumerator) by the average number of ordinary shares outstanding (denominator) during the period eeget proach, (i) Earning Vakue Approach and iii] Market Value Aprroach (©) () Cost Approach, (i) Earning Value Approach and (ii) Market Vanes Approach Economic-Value (D) i) Asset-Based Approach (ii) Earning Value Approach and Approach, 67. The average profit of a firm is 275,000. The rate of. capitalization is 12%. The assets and i i 6,80,000 and %4,30,000 respectively. The value of goodwill is: CE = _jsved _¢2sv00 27. ) 83, 25,000 = -4.2000%= 3 voce. (D)%1,75,000 ACE = 640000 ~4.30 me = 25He0d 237 5H00. Crrodusill = NCE -ALE <6 25000 68. Valuation of Shares is tobe done by: (A) Company Secretary or Advocate with 10 years of experience (Breet Banker or Company Secretary with 5 years of experience ) {crchant Dauker or Chartered Accountant with 10 years of experience Company Secretary or Chartered Accountant with 5 years of experience 69-Asset backing or intrinsic value or break-up value method is also called: (A) Earning Basis Method Fair Value Method (axa Asset Method } Super Profit Method 70,tad AS 102 applies to : th employees and non-employees share based payments ) shareholders of the company (C) non-employees share based payments (D) both employees share based payments ) 71.An investor wants to invest in the equity shares ofkv2 104. for rone year. The wumpany is ccied to declare a dividend of 83 per share. Further, a leading security analyst has Projected the year-end target price of this company’s share at 7160. Asstime that the Tequired rate of return is 10%. The fair price of the share is: init : (3 1454s fo= 4-(o th) (Biss hot (3 Hée) 148.45, 1¢ market price of an equity share the market price of preference share (C) the issue price of an equity share (D) the issue price of preference share Goreme investment analysts and equity shareholders to arrive at the 73. Systematic risk of a security is indicated by: (A) Rho coefficient (B) Gamma coefficient (C) Alpha coefficient coefficient 74. Economic Vahic Added (BVA) is :

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