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Created on April 08, 2026 By

CA Sonal Saboo

CMA Final

Final Corporate Financial Reporting PN-18 Quiz 5

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

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Category: Corporate Financial Reporting PN-18

1. Which companies are exempted from XBRL?

a. Power sector companies

b. Banking companies

c. Insurance companies

d. All of these

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Category: Corporate Financial Reporting PN-18

2. When objective of holding financial assets does not include collection of cash flows by selling financial assets, such financial assets are measured at

a. fair value through other comprehensive income (OCI)

b. fair value through profit and loss (P&L)

c. amortized cost

d. None of the above

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Category: Corporate Financial Reporting PN-18

3. Which institution is not under XBRL?

a. IRDAI

b. RBI

c. SEBI

d. None of these

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Category: Corporate Financial Reporting PN-18

4. XML stands for what?

a. Extensible

b. Markup

c. Language

d. All of these

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Category: Corporate Financial Reporting PN-18

5. Where does “Employee Stock Option Outstanding” appear?

a. Balance sheet as a part of net worth

b. Profit and loss A/C

c. Balance sheet as a negative item as a part of net worth

d. Profit and loss appropriation A/C

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Category: Corporate Financial Reporting PN-18

6. Alpha Ltd absorbs Beta Ltd and shares are issued by Alpha Ltd using swap ratio 3:7. The face value of each share is Rs.10 for both the companies. The intrinsic value of each shares of Alpha Ltd is Rs.14. Total purchase consideration is equal to

a. Rs.275410

b. Rs.341780

c. Rs.182490

d. None of the above

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Category: Corporate Financial Reporting PN-18

7. What are the types of share based payment transaction?

a. Equity settled share based payment transaction

b. Share based payment transaction with cash alternatives

c. Cash settled share based payment transaction

d. All of these

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Category: Corporate Financial Reporting PN-18

8. What is the eligibility of an employee who is a promoter to exercise the option?

a. Not eligible to participate in “Employee Stock Purchase Scheme”

b. Eligible to participate in “Employee Stock Purchase Scheme”

c. Eligible to participate in Employee Stock Purchase Scheme if permitted by the Board of Directors

d. Eligible to participate in Employee Stock Purchase Scheme if permitted by shareholders in General Meeting

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Category: Corporate Financial Reporting PN-18

9. To whom “Employee Stock Option” can be offered?

a. Whole time directors of the company only

b. Employee of the company only

c. Officer of the company only

d. All of these

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Category: Corporate Financial Reporting PN-18

10. What is net asset?

a. Total fixed assets plus total current assets

b. Total fixed assets plus total current assets minus total current liabilities

c. Total tangible assets

d. Total current assets

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Category: Corporate Financial Reporting PN-18

11. What are the types of share based payment plans?

a. Employee stock option purchase plan

b. Employee stock option plan

c. Stock appreciation rights

d. All of these

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Category: Corporate Financial Reporting PN-18

12. What is purchased goodwill?

a. When payment is made in excess of net asset purchased

b. When less payment is made of net asset purchased

c. Both of the above

d. None of these

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Category: Corporate Financial Reporting PN-18

13. What is a financial instrument?

a. A contract

b. Financial assets

c. Financial liability or Equity

d. All of these

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Category: Corporate Financial Reporting PN-18

14. Super Profit of ABC Ltd (Computed) : Rs.18,00,000 Normal rate of return: 12% Present value of annuity of Rs.1 for 4 years @ 12% : 3.0374 Value of goodwill is —

a. Rs.5467320

b. Rs.1800000

c. Rs.2160000

d. Rs.592612

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Category: Corporate Financial Reporting PN-18

15. Sustainability means?

a. Environment factor balancing

b. Social factor balancing

c. A balancing act of economic factor

d. All of these

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Category: Corporate Financial Reporting PN-18

16. What is not a part of sustainability?

a. Economic sustainability

b. Social sustainability

c. Political sustainability

d. Economic sustainability

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Category: Corporate Financial Reporting PN-18

17. In case of amalgamation in the nature of purchase, Fixed Assets, Current Assets, Total Debts, Debit balance of Profit and Loss Account and Purchase consideration are - Rs.5120000, Rs.2500000, Rs.2260000, Rs.440000, Rs.4800000 respectively. The amount of capital reserve or Goodwill will be

a. Rs.1000000 (Capital Reserve)

b. Rs.560000 (Capital Reserve)

c. Rs.120000 (Capital Reserve)

d. Rs.1940000 (Goodwill)

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Category: Corporate Financial Reporting PN-18

18. Three pillars of sustainability are?

a. Planet

b. People

c. Profit

d. All of these

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Category: Corporate Financial Reporting PN-18

19. Net Assets of the Transferor Company: Rs.15 lakhs. If Purchase Consideration is Rs.19 lakhs & amalgamation is in the nature of purchase, then

a. Rs.4 lakhs will be treated as Capital Reserve

b. Rs.4 lakhs will be treated as Goodwill

c. Rs.15 lakhs will be treated as Capital Reserve and 4 lakhs will be Goodwill

d. None of the above

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Category: Corporate Financial Reporting PN-18

20. A Company takes a Machinery on lease for a term of 6 years at a lease rent of Rs.4,00,000 p.a. payable at end of each year with guaranteed and unguaranteed residual value of Rs.3,00,000. The gross investment will be

a. Rs.300000

b. Rs.400000

c. Rs.2400000

d. Rs.2700000

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Category: Corporate Financial Reporting PN-18

21. Capital Employed is Rs.255 Lakhs; Annual average profits are Rs.57 Lakhs; Normal rate of return is 12%. The value of goodwill on the basis of Capitalization of super profits will be .

a. Rs.220 Lakhs

b. Rs.30.6 Lakhs

c. Rs.57 Lakhs

d. Rs.26.40 Lakhs

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Category: Corporate Financial Reporting PN-18

22. What are the important terms of employee share based payment plan?

a. Intrinsic value

b. Vesting Period

c. Grant

d. All of these

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Category: Corporate Financial Reporting PN-18

23. Indian Government Accounting Standard (IGAS)-1 deals with

a. Guarantees given by Governments: Disclosure Requirements

b. Accounting and Classification of Grants-in-Aid

c. Loans and Advances made by Government

d. Foreign Currency Transactions and Loans or Gain by Exchange Rate Variation

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Category: Corporate Financial Reporting PN-18

24. Members of Public Accounts Committee are elected by Lok Sabha and Rajya Sabha and comprise of not more than

a. 7 members of Lok Sabha and 15 members of Rajya Sabha

b. 5 members of Lok Sabha and 17 members of Rajya Sabha

c. 15 members of Lok Sabha and 7 members of Rajya Sabha

d. No any limit

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Category: Corporate Financial Reporting PN-18

25. Triple Bottom Line (TBL) means?

a. Operating result

b. Recording

c. Last line

d. All of these

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Final PN-18 Corporate Financial Reporting Quiz 5

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