MCQ Portal

30:00

June 17 Corporate A/c & Auditing

The Number of MCQs are limited as per ICMAI Past Paper in Syllabus 2016

1. How many types of underwriting agreements are there?

One type Two types Three types Four types

2. Which Accounting Standard governs segment reporting?

AS 16 AS 17 AS 18 AS 19

3. When debentures are redeemed, the amount in the Debenture Redemption Reserve that is no longer needed should be transferred to which reserve?

Revaluation Reserve Securities Premium Reserve Capital Reserve General Reserve

4. What is the provisioning rate for a bank regarding advances that are doubtful for more than one year but less than three years?

25% 40% 60% 100%

5. How should the balance of interest accrued on the Security Deposit account of an electricity company be classified?

Current Liability Non-current Liability Current Asset Non-current Asset

6. Which of the following activities is not included in cash flow from operating activities?

Collection from customers Payment of outstanding wages Payment to suppliers of machinery Advances to foreign suppliers for raw materials

7. Which of the following is not considered an audit risk?

Inherent Risk Detection Risk Control Risk Omission Risk

8. Which of the following statements is true regarding the payment of dividends?

Dividends can be paid from current year's profit after depreciation. Dividends cannot be paid from undistributed profits of previous years. Dividends can be paid from profit on revaluation of fixed assets. Dividends cannot be paid from money provided by the government.

9. What is the primary purpose of an audit engagement letter?

To outline the auditor's fees To define the scope and responsibilities of the audit To provide a summary of the financial statements To confirm the appointment of the auditor

10. Which of the following is a key difference between statutory audit and internal audit?

Statutory audits are conducted by internal staff. Internal audits are required by law. Statutory audits are appointed by shareholders. Internal audits focus solely on financial statements.