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Created on March 24, 2026 By

CA Sonal Saboo

CMA Inter

Inter CA&A PN-10 Quiz 3

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. Rate of provision on advances doubtful for more than 3 years is .

a. 40%

b. 25%

c. 100%

d. Nil

2 / 25

Category: Corporate Accounting and Auditing PN-10

2. Which of the following is a principle of insurance?

a. Principle of indemnity

b. Insurable interest.

c. Principle of uberrimae fidei.

d. All of the above

3 / 25

Category: Corporate Accounting and Auditing PN-10

3. Rate of provisioning for advances doubtful for more than 1 year but less than 3 years is .

a. 25%

b. 40%

c. 60%

d. 100%

4 / 25

Category: Corporate Accounting and Auditing PN-10

4. The Central Commission shall consist of which of the following Members?

a. A chairperson and 3 Members

b. The Chairperson of the Authority who shall be the Member, ex-officio.

c. Both 1 and 2

d. None of them

5 / 25

Category: Corporate Accounting and Auditing PN-10

5. Which of the following is/are main feature of Electricity Act, 2003?

a. The activities like generation, transmission and distribution of power have been separately identified.

b. Power generation has partially been de- licensed

c. 20% of the power supplied by suppliers and distributors to the consumers has to be generated using renewable and non- conventional sources of energy

d. Metering of all electricity supplied has been made optional

6 / 25

Category: Corporate Accounting and Auditing PN-10

6. The Electricity Act, 2003 replaced which of the following erstwhile existing legislations?

a. The Indian Electricity Act, 1910

b. The Electricity (Supply) Act, 1948

c. The Electricity Regulatory Commissions Act, 1998

d. All of these

7 / 25

Category: Corporate Accounting and Auditing PN-10

7. The status of securities and the value of such securities must be mentioned by every bank in Schedule .

a. 2

b. 4

c. 7

d. 9

8 / 25

Category: Corporate Accounting and Auditing PN-10

8. = Amount of Bill × Rate of Discount × Unexpired period (in months)/12

a. Rebate on Bills Discounted

b. Discount on Bills

c. Interest

d. Loan Amount

9 / 25

Category: Corporate Accounting and Auditing PN-10

9. Some of the common purposes are of a Bank's Statistical Books is/are .

a. To record Average Balance in Loan and Advances etc.

b. To record Deposits received and amount paid out ea ch month in the various departments

c. To record Average Balance of Assets

d. Both 1 and 2

10 / 25

Category: Corporate Accounting and Auditing PN-10

10. Which of the following is/are not Subsidiary Register of a banking company?

a. Demand Drafts, Telegraphic Transfers and Mail Transfers issued on Branches and Agencies

b. Demand Drafts, Telegraphic Transfers and Mail Transfers received from Branches and Agencies

c. Letters of Indemnity

d. Letters of Credit

11 / 25

Category: Corporate Accounting and Auditing PN-10

11. Objectives of Bank’s Book keeping system is/are .

a. to keep up-to-date detailed ledgers

b. to balance the trial balance every day

c. to keep all control accounts in agreement with the detailed ledgers

d. All of these

12 / 25

Category: Corporate Accounting and Auditing PN-10

12. From the following information presented by P Ltd. ascertain the Net Realisable Vlue of stock : Cost Price of certain stock amounted to Rs.60,000; being obsolete, it can be used for production purposes after incurring Rs.10,000 for modification. The same could be used as a raw material for an existing product, the purchase price for the same amounts to Rs.40,000.

a. Rs.60,000

b. Rs.40,000

c. Rs.30,000

d. Rs.10,000

13 / 25

Category: Corporate Accounting and Auditing PN-10

13. X Ltd. purchased machinery of Rs.10,00,000 issuing a cheque of Rs.2,50,000 and 10% Debentures of Rs.7,50,000. In the cash flow statement, the transaction will be shown as .

a. Outflow under investing activity Rs.10,00,000, inflow under financing activity as receipt for debentures Rs.7,50,000

b. Outflow under investing activity Rs.2,50,000

c. Inflow of Rs.7,50,000 as financing activity.

d. None of the above

14 / 25

Category: Corporate Accounting and Auditing PN-10

14. The method for presenting Net cash provided by operating activities that starts with net income and adjusts it for items that affected reported net income but that did not affect cash is called as .

a. Direct method

b. Working capital method

c. Indirect method

d. Cost-benefit method

15 / 25

Category: Corporate Accounting and Auditing PN-10

15. Cash flows from operating activities (Rs.550) Lakhs Cash flows from investment activities (Rs.1,250) Lakhs Cash flows from financing activities Rs.1,750 Lakhs Determine the changeds in cash and cash equivalents is .

a. Decrease in Cash and Cash Equivalent by Rs.50 Lakhs

b. Increase in Cash and Cash Equivalent by Rs.50 Lakhs

c. No change in Cash and Cash Equivalent

d. It is a non Cash item

16 / 25

Category: Corporate Accounting and Auditing PN-10

16. A Ltd. paid an advance tax amounting to Rs.3,65,000 out of which Rs.15,000 is relating to a short-term capital gain on sale of securities. How will A Ltd. report the payment of advance tax in its Cash Flow Statement?

a. Cash Flows from Operating Activity

b. Cash Flows from Investing Activity

c. Cash Flows from Financing Activity

d. None of these

17 / 25

Category: Corporate Accounting and Auditing PN-10

17. m. Acquired the assets of a company through issue of equity shares is classified as .

a. Cash Flows from Investing Activity

b. Cash Flows from Operating Activity

c. Cash Flows from Financing Activity

d. None of these

18 / 25

Category: Corporate Accounting and Auditing PN-10

18. Advance received from customers is classified as .

a. Cash Flows from Investing Activity

b. Cash Flows from Operating Activity

c. Cash Flows from Financing Activity

d. None of these

19 / 25

Category: Corporate Accounting and Auditing PN-10

19. A company received dividend of Rs.1,00,000 on its investment in other company's share. In case of a Finance company it will be classified as

a. Cash Flows from Investing Activity

b. Cash Flows from Operating Activity

c. Cash Flows from Financing Activity

d. None of these

20 / 25

Category: Corporate Accounting and Auditing PN-10

20. Interest on Long term borrowing is an expense relating to

a. Investing Activity

b. Operating Activity

c. Financing Activity

d. All of these

21 / 25

Category: Corporate Accounting and Auditing PN-10

21. Which of the following is a source of Cash?

a. Cash deposited into Bank

b. Cash withdrawn from Bank

c. Sale of Goods Costing Rs.20,000 Rs.15,000

d. Depereciation charged on Fixed Assets

22 / 25

Category: Corporate Accounting and Auditing PN-10

22. An example of Cash Flow from Financing Activity is

a. Payment of Dividend

b. Receipt of dividend on investment

c. Cash received from customer

d. Purchase of Fixed Assets

23 / 25

Category: Corporate Accounting and Auditing PN-10

23. Marketable securities are treated as in Cash Flow Statement

a. Cash

b. Cash equivalent

c. Current Asset

d. Non-cash Equivalent

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Category: Corporate Accounting and Auditing PN-10

24. Increase of Bills Receivale by Rs.30,000 results in

a. Decrease in Cash

b. Increase in Cash

c. No effect on cash

d. All of these

25 / 25

Category: Corporate Accounting and Auditing PN-10

25. If the Net Operating Profit is Rs.90,000 and the Debtors are decreased by Rs.20,000 during the year.Then Cash from Operation will be .

a. Rs.70,000

b. Rs.1,10,000

c. Rs.90,000

d. None of these

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Inter PN-10 CAA Quiz 3

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