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

  1. added to the cost of investments
  2. subtracted from the cost of investments. 
  3. no treatment is required.

Answer: 1

Q2.  Cost of investment includes 

  1. Purchase costs
  2. Brokerage and Stamp duty paid.
  3. Both (a) and (b).

Answer: 3

Q3.  A current investment is an investment 

  1. That is readily realisable
  2. That is intended to be held for not more than one year from the date on which such investment is made. 
  3. Both (a) and (b)

Answer: 3

Q4.  If investment is acquired by issue of shares, the acquisition cost of investment is

  1. Amount paid for acquisition.
  2. Fair value of securities issued.
  3. Market price of securities.

Answer: 2

Q5.  When long-term investments are reclassified as current investments, current investments are valued at 

  1. Cost. 
  2. Carrying amount
  3. 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 

  1. ₹ 50000
  2. ₹ 48000
  3. ₹ 45000

Answer: 3

 

CA Intermediate ACCOUNTING - MCQ for Chapter 10 -   

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