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Unformatted text preview: 1 Question Paper Financial Accounting (CFA510): October 2008 ï‚· Answer all 73 questions. ï‚· Marks are indicated against each question. Total Marks : 100 1. Ex-post income means (a) Gross sales less returns (b) The profit which is disclosed in profit and loss account (c) Capital at the end of the period less capital at the beginning of the period (d) Original expectation of expected future cash flows at the end of the period less original expectation of expected future benefits at the beginning of the period (e) Revised expectation of expected future cash flows at the end of the period less original expectation of expected future benefits at the beginning of the period. (1 mark ) <Answe r> 2. Who among the following is considered as an external user of financial statements? (a) Board of Directors (b) Partners (c) Investors (d) Managers (e) Officers. (1 mark ) <Answe r> 3. Under cash basis of accounting, revenue is recognized when (a) Goods are sold (b) Cash is received (c) Goods are delivered (d) Services are rendered (e) Sales are accounted. (1 mark ) <Answe r> 4. The categorization of assets into â€˜fixedâ€™ and â€˜currentâ€™, presupposes which of the following accounting concepts? (a) Business entity concept (b) Going concern concept (c) Money measurement concept (d) Conservatism concept (e) Duality concept. (1 mark ) <Answe r> 5. Which of the following will not appear under the head â€˜Miscellaneous Expenditureâ€™ in the balance sheet of a company? (a) Preliminary expenses to the extent not written off (b) Interest paid out of capital during construction (c) Discount allowed on issue of shares and debentures (d) Development expenditure not adjusted (e) Loss on sale of fixed assets. (1 mark ) <Answe r> 6. Which of the following items cannot be shown as reserves and surplus? (a) Gain on revaluation of assets (b) Premium on issue of shares (c) Accumulated retained earnings (d) Capital redemption reserve (e) Proposed dividends. (1 mark ) <Answe r> 7. Different valuation bases are used in accounting and in this context, present value means (a) The amount paid or payable to acquire a benefit (b) The amount that needs to be paid if the asset is to be acquired currently (c) The present discounted value of future inflows that an item is expected to generate in the normal course of business (d) The net amount collectible in the event of the assetâ€™s disposal (e) The amount paid or payable to lose a benefit. (1 mark ) <Answe r> 2 8. Accounting does not record non-financial transactions due to (a) Cost concept (b) Money measurement concept (c) Going concern concept (d) Business entity concept (e) Accounting period concept. (1 mark ) <Answe r> 9. Which of the following is not a use of fund?...
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This note was uploaded on 07/20/2010 for the course ICFAI CFA taught by Professor Cfa during the Fall '09 term at Indian School of Business.
- Fall '09