MCQ for CA Intermediate Adv. Accounts - Chapter 10 - CONSOLIDATED FINANCIAL STATEMENT

Sample Multiple Choice Questions (MCQ's) for CA Intermediate - Paper 5 - ADVANCED ACCOUNTING - Chapter 10: CONSOLIDATED FINANCIAL STATEMENT - For Practice relevant for May/November 23 Examinations

 

Q1.  Minority interest should be presented in the consolidated balance sheet

  1. As a part of liabilities
  2. As a part of equity of the parent’s shareholders.
  3. Separately from liabilities and the equity of the parent’s shareholders. 

Answer: 3

Q2.  Minority of the subsidiary is entitled to

  1. Capital profits of the subsidiary company.
  2. Revenue profits of the subsidiary company.
  3. Both capital and revenue profits of the subsidiary company.

Answer: 3

Q3.  In consolidation of accounts of holding and subsidiary company _________ is eliminated in full.

  1. Current liabilities of subsidiary company.
  2. Reserves and surplus of both holding and subsidiary company.
  3. Mutual indebtedness.

Answer: 3

Q4.  In consolidated balance sheet, the share of the outsiders in the net assets of the subsidiary must be shown as

  1. Minority interest
  2. Capital reserve
  3. Current liability

Answer: 1

Q5.  Issue of bonus shares by the subsidiary company out of capital profits will

  1. Decrease cost of control.
  2. Increase cost of control.
  3. Have no effect on cost of control.

Answer: 3

Q6.  Sahil Ltd acquired 45% of Rahil Ltd shares of ₹ 5,00,000 on 1.06.2019. By such an acquisition, Sahil Ltd can exercise significant influence over Rahil Ltd. During the financial year ending on 31.03.2019, Rahil Ltd earned profits ₹ 100,000 and declared a dividend of ₹ 75,000 on 13.09.2019. What is the carrying amount of investment in separate financial statements of Sahil Ltd as on 31.03.2020?

  1. ₹ 4,66,250
  2. ₹ 7,81,250
  3. ₹ 4,28,000.

Answer: 1 

 

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