TYBAF FA VI Semester V Important Objectives

T.Y.BAF Financial Accounting - 6

Important Objectives

1) LLP should have minimum

(a) 7 partners (b) 50 partners

2) The maximum number of partners LLP can have is

(a) 7 partners (b) 50 partners

3)            Every limited liability partnership shall have at least __________ designated partners who are individuals.
(a) 7                                                                (b) 50
(c) 2                                                                (d) 3

4)            At least __________ of the designated partners of every limited liability partnership shall be a resident in India.
(a) one                                                                       (b) two
(c) three                                                                     (d) seven

5)            In absence of LLP Agreement, the mutual rights of Partners and in relation to LLP will be determined as per Schedule __________ of the LLP Act 2008.
(a) I                                                                 (b) II
(c) VI                                                               (d) VIII

6)            A Limited Liability Partnership whose contribution exceeds Rs __________ is required to annually get their accounts audited by any Charted Accountant in practice.
(a) 40 Lakh                                                    (b) 1 Lakh
(c) 25 Lakh                                                   (d) 50 Lakh

7)            A Limited Liability Partnership whose turnover exceeds Rs __________ is required to annually get their accounts audited by any Chartered Accountant in practice.
(a) 40 Lakh                                                   (b) 1 Lakh
(c) 25 Lakh                                                    (d) 50 Lakh

8) LLP is governed by

(a) Partnership Act, 1932 (b) Companies Act, 1956

9) Following can become a partner in the LLP:

(a) Company incorporated in India (b) LLP incorporated outside India

10) A partner of LLP has the following right, only if provided in the LLP agreement

(a) participate in the management of the LLP

(b) get remuneration for participating in the management of LLP

(d) transfer his right to share in the profit/losses of the LLP

11) Monetary value of the reputation related with earning capacity of the firm.

(a) Goodwill (b) Trade mark

12) An asset which is not fictitious but intangible in nature having realizable value

(a) Goodwill (b) Trade mark

13) Extra amount over and above the saleable values of the identifiable assets that could be fetched by selling an existing firm as a going concern.

(a) Goodwill (b) Trade mark

14) Amount of capital used by business concern to run its business activities.

(a) Capital employed (b) Share capital

15) Rate of profit estimated or expected on capital employed.

(a) Normal Rate of Return (b) Super profit

16) A rate of return normally expected by the shareholders on their investment.

(a) Normal Rate of Return (b) Super profit

17) Excess of average profit earned by the firm over and above its normal profit.

(a) Super profit (b) Bumper profit

18) Goodwill is

a. An intangible asset b. A fixed asset

c. Realisable d. All of them

19) Goodwill is to be valued when

a. Amalgamation takes place

b. One company takes over another company

c. A partner is admitted

d. All of the above

20) Goodwill is paid for obtaining

a. Future benefit b. Present benefit

c. Past benefit d. None of them

21) Goodwill as per purchase of super profit is equal to

a. Super Profit

b. Super Profit x Amount of Purchases

c. Super Profit x No of years’ Purchases

d. None of them

22) While calculating capital employed

a. Tangible trading assets should be considered

b. Intangible assets should be considered

c. Fictitious assets should be considered

d. None of them should be considered

23)      Capital employed at the end of the year is ` 4,20,000. Profit earned ` 40,000. Average capital employed is
a.            ` 4,20,000                b. ` 4,00,000             c. ` 4,40,000             d. ` 4,60,000

24)      Capital employed at the beginning of the year is ` 5,20,000 and the profit earned during the year is ` 60,000. Average Capital employed during the year is
a.            ` 5,50,000                 b. ` 5,20,000             c. ` 5,80,000             d. ` 4,60,000

25) Average Profit is ` 19,167 and normal profit is ` 10,000. The Super Profit is

a. ` 9,167 b. ` 29,167 c. ` 19,167 d. ` 10,000

26) Super Profit is ` 9,167 and the Normal Rate of Return is 10%. Goodwill as per capitalisation of Super Profits method is equal to

a. ` 91,670 b. ` 90,600 c. ` 67,910 d. ` 95,000

27) Shares are to be valued on

a. Mergers b. Sale of Shares c. Gift Tax d. All of them

28) Quoted shares are those shares which are

a. Listed on stock exchange b. Quoted daily

c. Quoted by the Seller d. Quoted by the buyer

29) Under net asset method value of a share depends on

a. Net assets available to equity shareholders

b. Net assets available to debenture holders

c. Net assets available to preference shareholders

d. None of the above

30) Net asset value is also called as

a. Asset backing value b. Intrinsic Value

c. Liquidation Value d. All of them

31) While deciding net asset value fictitious assets

a. Should be considered

b. Should not be considered

c. Added to total assets

d. None of the above

32) Net asset value method is based on the assumption that the company is

a. A going concern b. Going to be liquidated

c. a & b d. None of them

33) Yield value depends on

a. Future Maintainable Profit

b. Paid up equity Capital

c. Normal Rate of Return

d. All of them

34) F.M.P. for yield valuation is

a. Future Profit

b. Profit that would be available to equity shareholders

c. Past Profit

d. None of them

35) Yield value is based on the assumption that

a. The company is a going concern

b. The company will be liquidated

c. The company is sick

d. None of the above

36) Value of Partly paid Equity Share is equal to

a. Value of fully paid shares – calls unpaid per share

b. Calls in arrears per share

c. Paid up value per share

d. None of the above

37)      Gross assets are ` 1,01,000, Fictitious Assets ` 350 are included in the Gross assets. External Liabilities are ` 7,500. 6% Preference Share Capital is ` 45,000. Equity capital is 4,500 equity shares of ` 10 each fully paid up. The Net Asset Value Per Share is
a.            ` 11                             b. ` 10.70                   c. ` 15                        d. ` 20

38)      The company earns a net profit of ` 24,000 with a capital of ` 1,20,000. The NRR is 10%. Under capitalization of super profits, goodwill will be
a.            ` 1,20,000                 b. ` 70,000                c. ` 12,000                 d. ` 24,000

39)      Average capital employed ` 14,00,000. 2011 – 2,50,000 (Profit), 2012 – 1,00,000 (Loss), 2013 – 4,50,000. NRR 10%. Goodwill is at 3 years purchase of super profit will be:
a.            ` 1,80,000                 b. ` 1,50,000             c. ` 1,20,000             d. ` 90,000

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Dr. Lal Tanwani

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TYBAF FA VI Semester V Important Objectives

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