CA-final Scholarship Test
When it comes to going to school getting a scholarship can ease the financial burden that your care giver has to take. This is therefore,why it is important to ensure that you pass the scholarship tests to secure it. Need some help in preparing for the CA exam? Worry not as this practice test will prepare you perfectly. Give it a shot!
- 1.Assuming the Current Ratio 2, if cash is paid to the Creditors then the current ratio will
- A.
Improve
- B.
Decline
- C.
No changs
- D.
Cann't say
- 2.Short Term Investment in Shares of a Listed Company
- A.
Is equal to Cash
- B.
Is Cash Equivalent
- C.
Is an Investing Activity
- D.
Is a Financing Activity
- 3.In Modigilliani Miller Approach of Capital Structure Theories, The Value of Levered Firm is equal to
- A.
The value of Unlevered Firm + Debt
- B.
The value of Unlevered Firm + Debt/(1-tax rate)
- C.
The value of Unlevered Firm + Debt(1-tax rate)
- D.
The value of Unlevered Firm + Debt (tax rate)
- 4.EBIT = 840, tax rate = 30%, EPS = Rs 4, No. of Equity Shares = 35. Debt/Equity Ratio = 2:1, Find Degree of Financial Leverage
- A.
2.94
- B.
6
- C.
4.2
- D.
None of these
- 5.In Capital Budgeting, if the lives of the Projects are unequal, then for Selecting a Project, we prefer--------------- as Capital Budgeting Technique
- A.
Equivalent Annuity Method
- B.
Internal Rate of Return
- C.
Modified Internal Rate of Return
- D.
Profitability Index Method
- 6.A firm is considering 3 Months credit to its customers. The firm is likely to charge Interest at an annualised rate of 24%. The firm want to remove the interest by a cash discount for immediate payment. How much would be the discount rate?
- A.
1.94%
- B.
5.66%
- C.
3.84%
- D.
6%
- 7.A Ltd pays interest on Debentures @ 8%. Tax rate is 40%, D/E ratio of the company is 2.5 and the ROCE IS 20%. Calculate the Return on equity (ROE)
- A.
30%
- B.
24%
- C.
32%
- D.
28%
- 8.If MoS = 600, P/V Ratio = 40%, VC = 560 Find the amount of Profit
- A.
168
- B.
224
- C.
360
- D.
240
- 9.In a manufacturing company, the production passes through four processes – A, B, C & D sequentially and the output of each process is the input of the subsequent process. The following is the loss of the four processes : A - 12% B - 14% C - 16% D - 15% The Input in process D is 7,946.40 kg, the Output of process A is
- A.
14,705.9kg
- B.
11,000 Kgs
- C.
12,500 Kgs
- D.
None of these
- 10.X and Y are Partners with capital of 9,000 and 10,000 respectively. Z is admitted into the firm for 1/3 share of profit and he brings 12,000 as his share of capital. How much will be the Goodwill of the firm :
- A.
5,000
- B.
6,000
- C.
10000
- D.
12,000
- 11.The capital of a Company comprises of equity shares of Rs 10 each amounting to Rs 10 lakhs and 10% Preference Shares of Rs 2 lakhs. Profit after tax for the year is Rs 4 lakhsDividend declared is @ 25% and current market price of Equity Share is Rs 80 each. What is the Price- Earning Ratio?
- A.
22
- B.
20
- C.
23
- D.
21.05
- 12.Which of the following is not true?
- A.
Where a company changes its name it shall give notice to the registrar within 15 days
- B.
Ultra vires act can be ratified by the shareholders in general meeting
- C.
Every person who authorises issue of prospectus which is untrue or misleading shall be liable under section 449
- D.
All of the above
- 13.It is an agreement between the bidders not to bid against each other . Such agreements are made with a view to prevent competition among bidders .
- A.
Pretended Bidding agreement
- B.
Knockout agreement
- C.
Damping agreement
- D.
All of the above
- 14.Which of the following is not true ?
- A.
Pledge is a variety of bailment
- B.
Pawnee has a right to use pledged goods.
- C.
Bailee has no right to use the goods as per the terms of bailment
- D.
Both B and C
- 15.A threat to file a suit against B
- A.
Amounts to coercion
- B.
Doesnot amounts to coercion
- C.
Amounts to coercion when the suit is on false charge
- D.
Both B and C
- 16.An agreement to give assisstance, financial or otherwise, to another to enable him to bring or defend legal proceedings when the person giving assisstance has got no legal interest of his own in the subject matter.
- A.
Champerty
- B.
Maintainance agreement
- C.
Social agreements
- D.
All of the above
- 17.Which of the following damages are intended to punish the wrongdoer and to deter him or her from committing any future breaches?
- A.
Compensatory damages
- B.
Punitive damages
- C.
Liquidation Damages
- D.
Nominial damages
- 18.By Product is a joint product and -----------
- A.
Its market value is less than the other joint products
- B.
Its market value is negligible as compared to other joint products
- C.
Its market value is negligible as compared to other joint products and cannot be processed further
- D.
Its market value is negligible as compared to other joint products and treated as By Product
- 19.What is Diluted EPS?
- A.
The potential equity shares if reduce the EPS of that year, in which the share/Debentures will be converted, then such reduced EPS is called Diluted EPS
- B.
The potential equity shares if reduce the EPS of the current year then, the most reduced EPS is called Diluted EPS
- C.
The potential equity shares if reduce the EPS of the current year then such reduced EPS is called Diluted EPS
- D.
The EPS Which is determined by using the Potential Equity shares is called the Diluted EPS.
- 20.What is NOT a fundamental accounting assumption as per AS-1?
- A.
Going concern
- B.
Materiality
- C.
Accrual
- D.
Consistency
- 21.Which of the following items of expense DO NOT form part of inventory costs?
- A.
Wages of factory staff
- B.
Salaries of corporate office employees
- C.
Freight Inward
- D.
Factory Maintenance
- 22.What shall not be included in computation of managerial remuneration?
- A.
Special Pay
- B.
House Rent Allowance
- C.
Employer Contribution to PF @ 12% of basic salary
- D.
Stock options
- 23.Dividend can only be declared out of?
- A.
Securities Premium
- B.
Capital Reserve
- C.
Revaluation Reserve
- D.
Free Reserve
- 24.What is currently the effective rate of Dividend Distribution Tax?
- A.
33.33%
- B.
20.66%
- C.
15%
- D.
17.65%
- 25.What is the time limit after which money lying in the Unclaimed Dividend Account is to be transferred to Investor Education and Protection Fund?
- A.
7 years
- B.
5 years
- C.
10 years
- D.
3 years
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