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

computation of Managerial Remuneration?
(1 mark)
(a) Any tax notified by the Central Government as being in the nature of a tax on excess or
abnormal profit
(b) Any tax on business profits imposed for special reasons or in special circumstances and notified
by Central Government in this behalf
(c) Interest on unsecured loans and advances
(d) Any compensation, damages or payments made voluntarily
(e) Bad debt written-off or adjusted during the year.
< ans >
42. Which of the subsequent items should not appear under the heading ‘unsecured loans’ in the Balance
Sheet of a company?
(1 mark)
(a) Sinking fund
(b) Loans and advances from subsidiaries
(c) Short term loans and advances from banks
(d) Loans and advances from others
(e) Fixed deposits from public.
< ans >
43. As per the Companies Act, the item “Proposed additions to reserves” should be included in
(1 mark)
(a) Reserves and surplus
(b) Miscellaneous expenditure
(c) Current liabilities and provisions
(d) Share capital
(e) Securities premium.
< ans >
44. According to Part II of Schedule VI of Companies Act, the classification of foreign exchange earnings
does not include
(1 mark)
(a) Export of goods computed on Free On Board (F.O.B.) basis
(b) Dividends from subsidiary company in India
(c) Royalty and know-how from foreign companies
(d) Professional and consultation fees from foreign companies
(e) Interest and dividend from foreign companies.
< ans >
45. Which of the subsequent items appears in the Profit and Loss Appropriation account?
(1 mark)
(a) Provision for bad debts
(b) Provision for taxation for current year
(c) Director’s remuneration
(d) Interim dividend
(e) Penalty paid for delay in payment of tax.
< ans >
46. The subsequent balances have been extracted from the books of Statham Ltd., as on March 31, 2006:
Additional information:
Sale proceeds of freehold properties is Rs.1,20,000 (which had cost of Rs.1,00,000 and on which
depreciation of Rs.20,000 had been provided).
Particulars Amount (Rs.) Particulars Amount (Rs.)

Earning:   Approval pending.