Institute of Chartered Financial Analysts of India (ICFAI) University 2007 Certification Finance Financial Accounting (CFA510): - Question Paper

method?
(1 mark)
(a) The amount of depreciation keeps increasing every year while the rate of depreciation keeps
decreasing
(b) The amount of depreciation and the rate of depreciation reduce every year
(c) The amount of depreciation reduces while the rate of depreciation remains the identical
(d) The amount of depreciation and the rate of depreciation increase every year
(e) The amount of depreciation increases while rate of depreciation remains the identical.
< ans >
38. As per Schedule VI of the Companies Act, 1956, which of the subsequent statements is actual regarding
the treatment of calls-in-arrears in the final accounts of a company?
(1 mark)
(a) The amount will be shown under the head ‘current assets’ on the assets side of the balance sheet
(b) The amount will be deducted from the called-up capital in the balance sheet
(c) The amount will be shown under the head ‘current liabilities’ in the balance sheet
(d) The amount will be shown in the profit and loss account as a loss without showing it in the
balance sheet
(e) The amount will be added to the share capital in the balance sheet.
< ans >
39. A special auditor to conduct special audit of a company is appointed by the
(1 mark)
(a) Board of directors of the company
(b) Members of the company
(c) Central Government
(d) Statutory auditors
(e) Income tax authorities.
< ans >
40. According to Schedule VI of the Companies Act, 1956, which of the subsequent assets is/are shown
under the head ‘Investments’ in the balance sheet of a company?
I. Investments in the capital of partnership firms.
II. Investments in trust securities.
III. Investments in shares.
IV. Investments in debentures.
(a) Only (I) above
< ans >
(1 mark)
(b) Only (II) above
(c) Both (III) and (IV) above
(d) (II), (III) and (IV) above
(e) All (I), (II), (III) and (IV) above.
41. Which of the subsequent items should not be deducted from the gross profit to arrive at the net profit for

Earning:   Approval pending.