MCQ for CA Intermediate ACCOUNTING - Chapter 9 - INVESTMENT ACCOUNTS
Sample Multiple Choice Questions (MCQ's) for CA Intermediate - Paper 1 - ACCOUNTING - Chapter 9: INVESTMENT ACCOUNTS - For Practice relevant for May/November 23 Examinations
Q1. The cost of Right shares is
- added to the cost of investments
- subtracted from the cost of investments.
- no treatment is required.
Answer: 1
Q2. Cost of investment includes
- Purchase costs
- Brokerage and Stamp duty paid.
- Both (a) and (b).
Answer: 3
Q3. A current investment is an investment
- That is readily realisable
- That is intended to be held for not more than one year from the date on which such investment is made.
- Both (a) and (b)
Answer: 3
Q4. If investment is acquired by issue of shares, the acquisition cost of investment is
- Amount paid for acquisition.
- Fair value of securities issued.
- Market price of securities.
Answer: 2
Q5. When long-term investments are reclassified as current investments, current investments are valued at
- Cost.
- Carrying amount
- Lower of Cost and Carrying amount
Answer: 3
Q6. Violet Ltd. held shares in Omega Co. from 01.04.20X1 onwards as investment for long term purpose. Now it wants to reclassify investment of cost of ₹ 50,000 out of these shares as current investments having carrying value of ₹ 45000. The fair value on date of transfer is ₹ 48,000. These reclassified shares would be valued on date of transfer at
- ₹ 50000
- ₹ 48000
- ₹ 45000
Answer: 3
CA Intermediate ACCOUNTING - MCQ for Chapter 10 -
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