Institute of Chartered Financial Analysts of India (ICFAI) University 2007 Certification Finance Financial Accounting – II (112): - Question Paper

In lieu of existing debentures.
(1 mark)
< ans >
42.
If the enterprises risks and rates of return are strongly affected by both the differencesin the products and services it produces and by differences in the geographical areasin which it operates, then it shall use
(a)
Geographical segment as its primary segment reporting format and business segment as its secondary reporting format
(b)
Business segment as its primary segment reporting format and geographical segment as its secondary reporting format
(c)
Matrix presentation
(d)
Depends on the option of the management
(e)
The info reported for groups of related products and services.
(1 mark)
< ans >
43.
The profits of Yankee Ltd. is Rs.15,75,000, which is arrived at after consideringthe following:
Directors’ remuneration Rs. 21,000
Subsidy received from the Government Rs.3,15,000
Income tax paid Rs. 94,500
Damages paid by virtue of legal liability Rs. 42,000
If the managerial remuneration payable to directors is 5% after charging suchcommission, the commission payable is
(a)
Rs.80,500
(b)
Rs.64,500
(c)
Rs.82,500
(d)
Rs.79,500
(e)
Rs.70,500.
(2 marks)
< ans >
44.
On June 10, 2004, Santosh Ltd. has taken a bank loan on which interest at the rateof 8% per annum is payable on June 30 and December 31, every year. The loan issecured by a charge on the factory building. The interest accrued and due as onMarch 31, 2006 was shown in the Balance Sheet of the company under the head
(a)
Current liabilities
(b)
Secured loans
(c)
Miscellaneous expenditure
(d)
Loans and advances
(e)
Unsecured loans.
(1 mark)
< ans >
45.
Xelon Ltd. proposed a dividend of 15%. The called-up equity share capital of thecompany is Rs.3,00,000. Calls-in-arrear amounted to Rs.20,000 and calls in advance aggregated to Rs.50,000. The amount of dividend payable is
(a)
Rs.49,500
(b)
Rs.42,000
(c)
Rs.39,000
(d)
Rs.35,000
(e)
Rs.34,500.
(2 marks)
< ans >
46.
The entry to record the declaration of a dividend includes a
(a)
Credit to General Reserve
(b)
Debit to cash
(c)
Credit to declared dividend
(d)
Credit to shareholders’ account
(e)
Credit to share capital account.
(1 mark)
< ans >
47.
The payment of tax deducted at source to the Government involves
I. A debit to Bank account with the amount of tax.
II. A debit to Tax deducted at source account with the amount of tax.

Earning:   Approval pending.