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Created on April 08, 2026 By

CA Sonal Saboo

CMA Final

Final Corporate Financial Reporting PN-18 Quiz 6

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. Chairman of the Public Accounts Committee and the C&AG are appointed by

a. the Speaker of the Lok Sabha and the Prime Minister of India respectively

b. the Speaker of the Lok Sabha and the President of India respectively

c. the Prime Minister of India and the Speaker of the Lok Sabha respectively

d. the President of India and the Speaker of the Lok Sabha respectively

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Category: Corporate Financial Reporting PN-18

2. Elora changes its method of valuation of inventories from weighted- average method to first-in first-out (FIFO) method. The accountant opines that Ind AS 8 is applicable. Elora Ltd. should account for this change as

a. a change in estimate and account for it prospectively

b. a change in accounting policy and account for it prospectively.

c. a change in accounting policy and account for it retrospectively

d. account for it as a correction of an error and account for it retrospectively

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Category: Corporate Financial Reporting PN-18

3. What is super profit?

a. Normal profit

b. Capital employed – Average capital employed

c. Actual profit – Normal profit

d. Capitalized value of profit – Intangible Assets

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Category: Corporate Financial Reporting PN-18

4. At the time of absorption of B Ltd by A Ltd, trade receivable of both companies shown in their Balance Sheets were Rs.35 Lakhs and Rs.18 Lakhs. On that date trade payable of B Ltd includes payable to A Ltd Rs.4.5 Lakhs. After absorption, the amount of trade receivables will be shown in the A Ltd's Balance Sheet as

a. Rs.53 Lakhs

b. Rs.48.50 Lakhs

c. Rs.35 Lakhs

d. Rs.44 Lakhs

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Category: Corporate Financial Reporting PN-18

5. How can Employee Stock Option be offered?

a. A special resolution in the general meeting

b. A resolution in the board meeting

c. An ordinary resolution in the general meeting

d. None of these

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Category: Corporate Financial Reporting PN-18

6. Which of the following is not a general principle of Government Accounting?

a. Reporting of Utilization of Public Funds

b. Budget-based

c. Expenditures are classified under sectors, major heads, minor heads, sub- heads and detailed heads of Accounts

d. Single Entry System

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Category: Corporate Financial Reporting PN-18

7. Who are the users of XBRL?

a. Investors

b. Non-Profit Organizations

c. Companies

d. All of these

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Category: Corporate Financial Reporting PN-18

8. MILKYWAY Ltd. is conducting research in respect of attaching self- charging batteries in all its vehicles. It has already incurred Rs.15 lakh last year for this research. During the year (2023-24), it incurs Rs.5,00,000 each month as a part of its research expenditure. On 01.05.2023, directors found that the research is successful and is going to bring a cash flow of Rs.300 lakh in the coming years to the company. Calculate the impact of the above transaction in the financial year ended 31st March, 2024 in the books of MILKYWAY Ltd.

a. Expenses Rs.70 Lakh and Intangible Asset Rs.300 Lakh

b. Expenses Rs.55 Lakh and Intangible Asset Rs.15 Lakh

c. Expenses Rs.5 Lakh and Intangible Asset Rs.55 Lakh

d. None of the above

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Category: Corporate Financial Reporting PN-18

9. Which of the following is not an objective of Government Accounting?

a. To provide reliable data regarding the operation of the public funds.

b. To avoid excess expenditure beyond the budgetary approval

c. To prevent misappropriation of government properties

d. To facilitate tax collection by the concerned government department

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Category: Corporate Financial Reporting PN-18

10. As per Ind AS-28, an entity with joint control of, or significant influence over, an investee shall account for its investment in an associate or a joint venture using the .

a. cquisition method

b. Purchase method

c. Equity method

d. Pooling of Interest method

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Category: Corporate Financial Reporting PN-18

11. Cosmic Ltd purchased machinery on 01.04.2021 for Rs.35 Lakhs. Written down value of the machinery as on 31st March, 2025 is Rs.18.27 Lakhs. The recoverable amount of the machinery is Rs.12.45 Lakhs. The impairment loss will be

a. Rs.5.82 Lakhs

b. Rs.16.73 Lakhs

c. Rs.12.73 Lakhs

d. Rs.18.73 Lakhs

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Category: Corporate Financial Reporting PN-18

12. With respect to Integrated Reporting which of the following is not true?

a. An integrated report is necessarily to be a stand-alone report

b. The framework of integrated reporting is written primarily for private companies

c. A report prepared as required by local law containing a management commentary or other report that provides context for its financial statements can serve the purpose of integrated reporting

d. All of the above

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Category: Corporate Financial Reporting PN-18

13. Which of the following is constituted under Article 266(2) of the Constitution of India?

a. Contingency funds of India

b. Public Accounts of India

c. Consolidated funds of India

d. All of the above

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Category: Corporate Financial Reporting PN-18

14. Which of the following is not a part of an earnings call?

a. Safe harbour statement

b. Presentation and discussion of the financial results

c. Question and answer session

d. Examination of audit report

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Final PN-18 Corporate Financial Reporting Quiz 6

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