MCQ Portal

1. What is the cash from operations for the year ending 31.03.2022 if the net profit is ₹15,000, interest received in advance on January 1, 2022, is ₹2,000, and on December 31, 2022, is ₹3,000?

₹16,000 ₹22,000 ₹13,000 ₹15,000

2. According to Schedule III of the Companies Act, 2013, where should interest received from borrowers be classified in the financial statements of a finance company?

Revenue from Operations Other Income Current Assets Non-current Assets

3. Which of the following principles is associated with insurance?

Principle of Indemnity Insurable Interest Principle of Uberrimae Fidei All of the above

4. What percentage of provision on unsecured doubtful advances is a banking company required to maintain?

25% 40% 50% 100%

5. How should the balance of Interest Accrued on Security Deposit Account of an electricity company be classified?

Current Liability Non-current Liability Current Assets Non-current Assets

6. Which of the following is not a condition for the buy-back of securities or shares?

Both fully and partly paid-up securities can be bought back. Buy-back must be authorized by the articles of association. Buy-back must be authorized by passing a special resolution in a general meeting. Buy-back should be completed within 1 year from the date of passing the special resolution.

7. What is the minimum paid-up share capital required for a public company to mandate internal audit according to the Companies Act?

₹100 crores ₹50 crores ₹500 crores ₹200 crores

8. In which form does a cost auditor submit his report along with reservations and observations?

CRA 1 CRA 2 CRA 3 CRA 4

9. How many days does the CAG of India have to fill a casual vacancy in a government company?

15 days 30 days 45 days 60 days

10. Which of the following is included in audit procedures to obtain audit evidence?

Compliance Procedure Substantive Procedure Both A and B Neither A nor B

11. How many companies can a qualified chartered accountant not in full-time employment be the auditor for at most?

10 companies 15 companies 20 companies 30 companies

12. Which of the following is not part of the rural self-governance system in India?

Gram Panchayat Gram Parishad Panchayat Samiti Zilla Parishad

13. Which statement is true regarding the appointment of a company auditor in case of a casual vacancy?

The Board of Directors can fill the vacancy. The vacancy must be filled by the shareholders in the next annual general meeting. The casual vacancy can be filled by the Central Government. The casual vacancy cannot be filled until the next financial year.

14. What is the primary purpose of analytical procedures in an audit?

To gather evidence for compliance with laws To evaluate financial information through analysis of relationships To assess the effectiveness of internal controls To prepare financial statements

15. Which of the following is a key responsibility of an auditor regarding the audit of debentures?

To ensure the debenture trust deed is properly filed To verify the amount collected matches the applications To check compliance with SEBI guidelines All of the above

June 23 CAA Paper