Question-Paper-For-Online-Examination-–Paper-12-Company-Accounts-Audit-Caa.pdf

INTERMEDIATE EXAMINATION
Syllabus 2016

Paper 12: COMPANY ACCOUNTS & AUDIT (CAA)

Time Allowed: 3 Hours Full Marks: 100

There are Sections A, B, C and D to be answered subject to instructions given against each.

Section A 20 X 1 =
You are required to answer all the questions. Each question carries 1 mark. 20 Marks
Instructions: Each question is followed by 4 Answer choices and only one is correct.
You are required to select the choice which according to you represents the correct answer.

1. a. Which of the following are the statutory books of insurance companies?
(i) Register of policies
(ii) Register of Claims
(iii) Register of License Insurance Agents
(iv) All of the above

b. Who appoints the auditor for government company?
(i) Board of Directors
(ii) Audit Committee
(iii) Managing Director
(iv) Comptroller and Auditor General (CAG)

c. While conducting audit of financial statement auditor need to comply with which of the
following?
(i) Auditing Standards
(ii) Cost Audit Standards
(iii) Secretarial Standards
(iv) None of the above

d. Under which Section of the Companies Act, 2013 is Audit of Debenture covered?
(i) Section 70
(ii) Section 72
(iii) Section 73
(iv) Section 71

e. The purpose of Internal Audit is to detect the error in which of the following?
(i) Employees records
(ii) Accounting records
(iii) Bank records
(iv) All of the above

f. Effective internal check system reduces ___________ .
(i) Responsibilities of Auditor
(ii) Work of Auditor
(iii) The liability of Auditor
(iv) None of the above

, g. While preparing Cash Flow Statement of X Ltd., a finance company, interest received on loans should
be shown as which of the following?
(i) Cash Flow from Investing Activities
(ii) Cash Flow from Operating Activities
(iii) Cash Flow from Financing Activities
(iv) Cash and Cash Equivalent

h. In case of Cash Flow Statement prepared under Direct Method, decrease in current liabilities is
_____________ .
(i) deducted to cash flow from operating activities
(ii) added to cash flow from operating activities
(iii) added to cash flow from investing activities
(iv) None of the above

i. On Redemption of Debentures, the amount lying in Debenture Redemption Reserve, which is no
longer necessary to be retained, should be transferred to which of the following?
(i) Revaluation Reserve
(ii) Securities Premium Reserve
(iii) Capital Reserve
(iv) General Reserve

j. Balance of Interest Accrued on Security Deposit A/c of an Electricity Company should be shown
under ____________ .
(i) Current Liability
(ii) Non-current Liability
(iii) Current Asset
(iv) Non-current Asset

k. In case of a Banking Company, General Ledger does not contain which of the following?
(i) Control Accounts of all personal ledger
(ii) Assets Accounts
(iii) Contra Accounts
(iv) Revenue Accounts

l. Premium on Redemption of Redeemable Preference Shares can be paid out of which of the
following?
(i) Capital Redemption Reserve account
(ii) Existing shares premium account
(iii) Proceed of fresh issue of shares
(iv) All of the above

m. When shares are allotted, they will be credited to which account?
(i) Share Capital Account
(ii) Share Allotment Account
(iii) Share Application Account
(iv) Share First and Final Call Account

n. Which of the following reserves cannot be used for the purpose of issuing bonus shares?
(i) General Reserve
(ii) Capital Redemption Reserve