An equity instrument of another entity, hold by a company will be known as:

• A) Treasury stock
• B) Financial asset
• C) Preference stock
• D) Financial liability

When a single stockholder holds a majority of the voting stock, the remaining shares are referred to as the:

• A) Minority interest
• B) Majority interest
• C) Controlling interest
• D) None of the given option

A subsidiary is a company that is controlled by a parent company through majority ownership of its:

• A) Debtors
• B) Both preferred and Common Stock
• C) Debentures
• D) Common Stock

Which of the following is concerned with the maximization of the firm’s earning after tax?

• A) Shareholder’s equity maximization
• B) Shareholder maximization
• C) Earning per share maximization
• D) Profit maximization

Ordinary share also called:

• A) Equity share
• B) All of the given options
• C) Common stock
• D) Common share

Which of the following guide an entity to change the accounting policy?

• A) If the change is required by a standard or an interpretation
• B) All of the given options
• C) The application of an accounting policy for transactions, other events or conditions that differ in substance from those previously occurring
• D) The application of a new accounting policy for transactions, other events or conditions that did not occur previously or were immaterial

According to which of the following International Accounting Standard, preference share is classified as “Financial Liability":

• A) IAS 32
• B) IAS 31
• C) IAS 33
• D) IAS 30

What would be the value of net profit of the year if:

Basic earning per share = Rs. 0.75 per share
Weighted average number of share outstanding during the year = 100,000
Total number of share outstanding during the year = 120,000

• A) Rs. 90,000
• B) Rs. 133,333
• C) Rs. 75,000
• D) Rs. 160,000

Followings are related with the IAS-8 EXCEPT:

• A) Events after the balance sheet date
• B) Changes in accounting estimates
• C) Accounting policies
• D) Prior period errors

Which of the following IAS deals with the Borrowing Costs?

• A) IAS 07
• B) IAS 16
• C) IAS 01
• D) IAS 23

Different loans for a project are:
Bank loan 18% Rs. 200,000
Bank loan 16% Rs. 100,00
What will be the capitalization rate?

• A) 19.33%
• B) 17.33%
• C) 14.33%
• D) 13.33%

Which of the following statement is NOT TRUE about the issuance of bonus shares?

• A) These are issued at a price less than the market value
• B) These are issued to the existing share holders
• C) These are issued against capitalization of the reserves
• D) It causes a decrease in the EPS comparing with the previous year’s EPS

Which of the following is/are related with the IAS-8?

• A) Changes in accounting estimates
• B) Accounting policies
• C) All of the given options
• D) Prior period errors

Which of the following statement is TRUE about the issuance of bonus shares?

• A) These are issued to the existing share holders
• B) These are issued against capitalization of the reserves
• C) It causes a decrease in the EPS comparing with the previous year’s EPS
• D) All of the given options

Accounting for long term contract was switched over from “Completed Contract Method” to “Percentage of Completed Method”. Whether it is:

• A) Change in accounting estimate
• B) Irrelevant item
• C) Prior period error
• D) Change in accounting policy

Which of the following represents the Qualifying Asset?

• A) Asset ready for use
• B) Manufacturing plants
• C) None of the given options
• D) Inventory routinely manufactured

In which of the following cases would consolidation be inappropriate?

• A) The subsidiary is in bankruptcy
• B) The parent owns 90 percent of the subsidiary's common stock, but all of the subsidiary's debentures are held by a single investor
• C) Subsidiary's operations are dissimilar from those of the parent
• D) Subsidiary is a foreign company

As a result of a product break through, it has been determined that manufacturing equipment previously depreciated over 15 years should be depreciated over 20 years. Whether it is:

• A) Change in accounting policy
• B) Irrelevant item
• C) Change in accounting estimate
• D) Prior period error

Preference shares that have fixed rate of dividend and a mandatory redemption feature at a future date are recorded as:

• A) Financial liability
• B) Potential equity instrument
• C) Equity instrument
• D) None of the given option

Which of the following is NOT TRUE about the preference share?

• A) Fixed rate of dividend is paid each year
• B) It is also known as financial liability
• C) It also is an equity instrument
• D) Dividend on such share is a part of financial charges