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Created on March 24, 2026 By

CA Sonal Saboo

CMA Inter

Inter CA&A PN-10 Quiz 2

This quiz is based on the CMA Corporate Accounting and Auditing paper.
Each question is multiple-choice with 4 options, and only 1 option is correct.
Attempt the quiz to test your understanding of CMA CAA concepts.

1 / 25

Category: Corporate Accounting and Auditing PN-10

1. Which of the following is an example of Non-cash Expenses

a. Depreciation

b. Wages and Salaries

c. Payment of Dividend

d. All of these

2 / 25

Category: Corporate Accounting and Auditing PN-10

2. Which of the following item is not considered as Cash Equivalent?

a. Equity Shares

b. Short term deposits in Banks

c. Bill Receivables

d. Commercial Papers

3 / 25

Category: Corporate Accounting and Auditing PN-10

3. A Cash Flow Statement begins with .

a. Investing Activity

b. Operating Activity

c. Financing Activity

d. Cash Equivalent

4 / 25

Category: Corporate Accounting and Auditing PN-10

4. When company repurchases its own shares it records a

a. Cash inflow

b. Cash outflow

c. No effect on cash

d. None of these

5 / 25

Category: Corporate Accounting and Auditing PN-10

5. What is/are objective/s of preparing Cash Flow Statement?

a. to determine ability of the entity to generate cash and cash equivalents

b. to meet the needs of the entity to utilise the cash flows

c. to ascertain gross inflows and outflows of cash

d. All of these

6 / 25

Category: Corporate Accounting and Auditing PN-10

6. The main difference in direct and indirect method is to calculate the

a. Cash Flows from Investing Activity

b. Cash Flows from Operating Activity

c. Cash Flows from Financing Activity

d. All of these

7 / 25

Category: Corporate Accounting and Auditing PN-10

7. Cash receipts from disposal of shares is classified under

a. Investing Activity

b. Operating Activity

c. Financing Activity

d. Cash Equivalent

8 / 25

Category: Corporate Accounting and Auditing PN-10

8. Proposed Dividend is treated as a and is shown as a deduction in Reserve and Surplus.

a. Contingent Liabilities

b. Current Assets

c. Current Liabilities

d. None of these

9 / 25

Category: Corporate Accounting and Auditing PN-10

9. The amount of Calls-in-Advance not yet adjusted till the Balance Sheet date is shown under under the head Current Liabilities

a. Other Current Liabilities

b. Inventories

c. Trade Receivables

d. Trade Paybles

10 / 25

Category: Corporate Accounting and Auditing PN-10

10. Inventories are valued at the lower of or the net realizable value.

a. Fair Value

b. Historical cost

c. Current value

d. None of these

11 / 25

Category: Corporate Accounting and Auditing PN-10

11. As per Schedule III of Companies Act 2013, while preparing the financial statements in case of a Finance Company, interest received from borrowers should be shown under

a. Revenue from operation

b. Other Income

c. Current assets

d. Non-current assets

12 / 25

Category: Corporate Accounting and Auditing PN-10

12. In case of purchase of assets under instalment payment system, instalments due after 12 months from the reporting date are shown as

a. Current liability

b. Current assets

c. Non-current liability

d. Non-current assets

13 / 25

Category: Corporate Accounting and Auditing PN-10

13. In the Notes to Accounts a Contingent liabilities shall be classified as .

a. Claims against the company not acknowledged as debt

b. Guarantees

c. Other money for which the company is contingently liable

d. All of these

14 / 25

Category: Corporate Accounting and Auditing PN-10

14. Futura Ltd had the following items under the head “Reserves and Surplus” in the Balance Sheet as on 31st March: (Rs. in Lakhs) Securities Premium Account - 80, Capital Reserve – 60, General Reserve – 90. The Company had an Accumulated Loss of Rs250 Lakhs on the same date. Reserves & Surplus to be disclosed in B/S is

a. Rs.250 Lakhs

b. Rs.230 Lakhs

c. Rs.20 Lakhs

d. Rs.(20 Lakhs)

15 / 25

Category: Corporate Accounting and Auditing PN-10

15. In the Balance Sheet Calls in Arrears will be shown in -

a. Liabilities Side

b. Assets Side

c. Assets or Liabilities Side

d. None of the above

16 / 25

Category: Corporate Accounting and Auditing PN-10

16. In the Balance Sheet Bank Overdraft will be shown as a liability under the heading –

a. Other Current Liabilities

b. Short Term Borrowings

c. Current Liabilities

d. Cash & Cash Equivalent Liabilities

17 / 25

Category: Corporate Accounting and Auditing PN-10

17. Which of the following appears under the heading ‘Reserve & Surplus’ in the balance sheet

a. Share Options Outstanding Account

b. Share Application Money Pending Allotment

c. Long Term Provisions

d. Share Application Money due for refund

18 / 25

Category: Corporate Accounting and Auditing PN-10

18. A liability shall be classified as current when it satisfies any of the following criteria:

a. It is expected to be settled in the Company’s normal operating cycle

b. It is due to be settled within twelve months after the reporting date

c. The company does not have an un- conditional right to defer settlement of the liability of at least twelve months after the reporting date.

d. Any of the above

19 / 25

Category: Corporate Accounting and Auditing PN-10

19. As asset shall be classified as current ------------------------

a. If it is held primarily for the purpose of being traded.

b. If it is not possible to classify such asset as non-current asset

c. It or the asset normal operating cycle cannot be identified

d. All of the above

20 / 25

Category: Corporate Accounting and Auditing PN-10

20. Under which heading the Deferred Tax Liabilities appears in the balance sheet .

a. Current Liabilities

b. Non-Current Liabilities

c. Deferred Liabilities

d. Contingent Liabilities

21 / 25

Category: Corporate Accounting and Auditing PN-10

21. If the turnover of the company is less than Rs.100 Crore, the figures appearing in the Financial Statements shall be rounded off to nearest –

a. To the nearest hundreds

b. To the nearest hundreds and thousands

c. To the nearest hundred, thousands, lakh or million thereof

d. To the nearest hundreds, thousands, lakhs or millions, or decimals thereof

22 / 25

Category: Corporate Accounting and Auditing PN-10

22. What are the major types of financial statements prepared by entities?

a. (a) Statement of Financial Performance or Income Statement (b) Statement of Financial State of Affairs or Balance Sheet (c) Statement of Changes in Financial Position (d) Statement of Inflow and Outflow of Cash

b. (a) Statement of Trial Balance (b) Statement of Financial State of Affairs or Balance Sheet (c) Statement of Changes in Financial Position (d) Statement of Inflow and Outflow of Cash

c. (a) Statement of Financial Performance or Income Statement (b) Statement of Financial State of Affairs or Balance Sheet (c) Statement of Changes in Financial Position (d) Statement of Fund Flows

d. (a) Statement of Financial Performance or Income Statement (b) Statement of Financial State of Affairs or Balance Sheet (c) Statement of Changes in Financial Position (d) Cash Book

23 / 25

Category: Corporate Accounting and Auditing PN-10

23. Which of the following is/are not a criteria to classify a liability as current liability?

a. it is expected to be settled in the company’s normal operating cycle

b. it is held primarily not for the purpose of being traded

c. it is due to be settled within twelve months after the reporting date

d. the company does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting date

24 / 25

Category: Corporate Accounting and Auditing PN-10

24. Where the company covered under section 135 of the Companies Act, 2013, which of the following shall be disclosed with regard to CSR activities?

a. amount of expenditure incurred

b. shortfall at the end of the year

c. shortfall at the end of the year

d. All of these

25 / 25

Category: Corporate Accounting and Auditing PN-10

25. Part I of the Schedule III to the Companies Act, 2013 gives the .

a. Format of Profit & Loss Account

b. General instructions for preparation of Profit & Loss Account

c. Format of Balance Sheet

d. Format of Comparative Statements

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Inter PN-10 CAA Quiz 2

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