Inter PN-10 CAA Quiz 7

1. Preference shares of ₹1,00,000 are redeemed at a premium of 5%. What amount should be debited to Securities Premium Account (if available)?

2. Employee is granted 1,000 stock options at ₹60. Market price at time of exercise is ₹100. What is the total gain to the employee?

3. A company issued 5,000 shares of ₹10 each at a premium of ₹2 per share. What is the total amount of securities premium received?

4. A company issued 8,000 shares and received applications for 10,000 shares. Pro-rata allotment is made. A person applied for 500 shares. How many shares will he get?

5. A company buys back 5,000 shares of ₹10 each at ₹12. What is the total amount paid for buy-back?

6. A company announces bonus shares in the ratio 2:5. A shareholder holds 1,000 shares. How many bonus shares will he receive?

7. Buy-back of shares reduces:

8. Rights shares are generally offered in proportion to:

9. After forfeiture, the forfeited shares can be:

10. Forfeiture of shares means:

11. Steps of audit common for all organisations are                 .

12. Regarding which category of Hospitality Sector, the followng steps are taken for auditing purposes?

a) Vouch the collections from boarders based on their check-in and check-out information recorded in the register, counterfoils of bills and cash book.

b) Verify the room rent receipts and daily occupancy Ask for proper clarification for differential rent charged from any boarder. Be careful while verifying the adjustment of unrealised room rent, cancellation charges of booking accommodation at the time of closing of accounts.

c) Vouch collections on account of special events such as conferences, wedding ceremony etc. separately based on counterfoil of receipts and cash book.

13. Steps common for the category of Restaurants in relation to Hospitality Sector is/are              .

14. Hospitality sector covers a wide range of organisations which can broadly be divided into            categories

15. In relation to advances made by bank an auditor needs to review which of the followings?

16. The auditor of a nationalised bank is primarily required to comment on which the following aspects in its report to the Central Government?

17. Which of the following is not falling under the broad category of Banks?

18. According to the Central Co-operatives Societies Act,                % of the profits of a co-operative society should be transferred to a Reserve Fund before distribution of dividend or payment of bonus to its members.

19. Which of the following records are not maintained by a co-operative societies asaccounting records ?

20. The major objective of audit of Municipalities and Panchayats are                 .

21. According to the Central Co-operatives Societies Act, of the profits of a co-operative society should be transferred to a Reserve Fund before distribution of dividend or payment of bonus to its members.

22. The amendments that gave the local self-governance in India the constitutional protection are and         .

23.                                 refers to the process of conducting the audit of a single organisation by more than one auditor.

24. Section                      of Companies Act, 2013 contains the statutory provisions in relation to remuneration of auditors

25. No individual shall be appointed or reappointed as auditor for more than one term of      consecutive years