MCQ Portal

1. The profit earned from forfeiture and re-issue of equity shares is credited to:

Dividend Equalization Reserve General Reserve Capital Reserve Securities Premium

2. In a Balance Sheet prepared under Schedule III of the Companies Act, 2013, 'Share application money pending allotment' is presented as:

Under Shareholder's Fund Under Non-current Liabilities Under Current Liabilities As a separate line item

3. In a Cash Flow Statement prepared using the Direct Method, a decrease in current liabilities is:

Added to cash flow from operating activities Deducted from cash flow from operating activities Added to cash flow from investing activities None of the above

4. Which method of depreciation has been recommended by the Central Electricity Regulatory Commission?

Straight Line Method Optimized Depreciated Replacement Cost Method Written Down Value Method Both (A) and (B)

5. While calculating depreciation for tariff purposes under Regulation 21 for an Electricity Company, the salvage value of an asset is considered as:

3% 5% 10% None of the above

6. According to Section 52 of the Companies Act, 2013, the Securities Premium Account cannot be used for:

Issuing fully paid-up bonus shares Paying interim dividend Writing off the discount on issue of debentures Writing off the premium on redemption of preference shares

7. A Nomination and Remuneration Committee should consist of how many directors?

5 10 2 3

8. An individual auditor who has completed his term shall not be eligible for reappointment as auditor in the same company for:

Next 3 Years Next 5 Years Next 7 Years Next 8 Years

9. Proving the truth in auditing refers to vouching of:

Payment Expenses Assets Liabilities

10. Secretarial Audit is applicable to a Public Company having a paid-up share capital of ₹:

50 crore 75 crore 100 crore 200 crore

11. The Internal Control Questionnaire consists of questions that need to be followed by:

Employer of the organization Employee of the organization Auditor of the entity Banker to the organization

12. The declaration of dividends is covered under which section of the Companies Act, 2013?

122 123 124 125

June 2019 CAA Paper

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