PGPM 2022-24 Fra Quiz 1 All Sections PGPM 2022-24 Fra Quiz 1 All Sections

7/29/22, 12:50 PM PGPM 2022-24 FRA QUIZ 1 ALL SECTIONS PGPM 2022-24 FRA QUIZ 1 ALL SECTIONS
PGPM 2022-24 FRA QUIZ 1 ALL

SECTIONS PGPM 2022-24 FRA QUIZ 1
ALL SECTIONS
Total points 3/10
MCQs, open book, no sharing of any material. NO negative marks. Duration 10 minutes
grace time 2 minutes for uploading. Late submissions as per system time will be ignored.
Answers will look very similar and you have to choose the most appropriate choice among
the 4 choices. With best wishes
The respondent's email (maharshi.p22027@iimtrichy.ac.in) was recorded on submission of

this form.
Jay Mundle *
Maharshi Tripathy

1/1
Financial
accounting records the value of non -current assets on the basis
of
market value
future value
historical cost
potential profit
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1/1
Tanishq brand has gold jewellery and their raw material is gold. They report
the
quantity of gold in tonnes, which they have in their financial accounting.
This is in violation of the principle of
auditing and verifiability
accounting period
conservatisim
Option 5
Money measurement
ABC is a
dealer n Maruti cars. The company ABC has 20 cars in stock. The 0/1
company
decides to take one out of the 20 cars for test drive. If the value
of each
car is Rs. 5,00,000, the value of inventory or stock at the end of the
year
(assume all of them are in stock)
INR 1 crore
INR 95 lakhs
INR 0
INR 5 lakhs
Correct answer
INR 95 lakhs
Feedback
Out of 20 cars, one car was taken for test drive. So, inventory is 19 cars and 1 car
becomes a fixed asset or non-current asset. The one car for test drive is used in the
business of the dealer and not traded. Also, the test drive car will be used in the business
for more than 1 year. Therefore, the inventory is 19 cars costing Rs. 19 * 5 = Rs. 95 lakhs
Mr. ABC
is a partner in LLP (limited liability partner). He entertains some 1/1
guests at
his home and charges it to the LLP. This amount should NOT be
treated as
business expenses, due to
Accounitng period concept
Going concern concept
WE can charge it as business expenses
Business entity concept

0/1
Mr.
Quereshi is a partner in ABC chartered accountants, which is a LLP
(limited liability partnership). The firm
has taken a loan of INR 3 crores and
the firm is unable to repay the loan.
There are 3 partners and there is no
personal guarantee given by the partners.
The lability of Mr. Quereshi is
Nil
Proportionate to the the capital contributed
INR 1 crore
Proportionate to their profit sharing ratio
Correct answer
Nil
Feedback
this is an LLP. In an LLP, there is no personal liability for the partners for the actions of the
partnership, unless they were personally involved in the action in the course of their
engagement with the firm. For ex: If a doctor is a partner in a LLP, and he misdiagnoses a
patient, then the doctor as well as the LLP will have liability. But, the doctor will not be
liable for any loan taken by the firm.
L&T
co. works on the basis of advance from customers for their projects. 0/1
They
have received an advance of INR 300 crores from a client on 29
March 2021. The
project was executed in the month of July 2021. The
amount received will be
the sales for the year ending
31-Mar-21
31-Mar-22
None of the other options
31-Mar-23
Correct answer
31-Mar-22
Feedback
Accounting period and accrual concept. Sales is recognised when the goods or services
are delivered. Hence, relevant year is year ending 31 March 2022

0/1
ABC co.
takes a loan of $ 10 million from Citibank repayable after 5 years,
as a
single payment and buys machinery worth $ 12 million. The balance
was paid as
cash. The company had a paid up share capital of $ 3 million
and retained
earnings of $ 12 million as of the transaction date. The impact
of this transaction on retained
earnings will be
Option 10
Reduction of $ 12 million
Option 15
Option 18
Option 17
Option 6
Option 7
Option 16
Option 21
Option 13
Option 23
Option 9
Option 20
Option 11
Option 24
Option 12
Option 5
Option 8
Nil
Option 19
Option 14
Correct answer
Nil
Feedback
There is no impact on retained earnings, as this transaction has 2 components, cash

converted into non-current asset, a loan or a liability taken for buying a non-current asset.
Both are pure balance sheet transactions. Hence, no impact on retained earnings
E*
Option 7
Option 8
Option 9
Option 10
Option 11
Option 12
Option 13
Option 14
Option 15
2201256 *
2201027
Airtel
has sold Rs. 300 crores worth of pre-paid vouchers, which have a 0/1
validity
between 3 months to 9 months on 29 March 2021. In the Balance
sheet as of 31
March 2021, this shall be shown under
Sales
Other income
Current liability
Cash
Correct answer
Current liability
Feedback
On the day pre-paid vouchers were sold, Airtel had not delivered any good or rendered
service. Airtel is under obligation to deliver the goods or service in the next 3 to 9 months.
So, this is only a liability to be discharged in the next 3 to 9 months. As this is less than 1
year, this is a current liability as of 31 March 2021, which is the balance sheet date
ABC co
has a cash sales of $ 2, 000 and a credit sales of $ 3,000 during the 0/1
year
2021. It used up $ 3,000 worth of material for the sales. The promoter
took $
1,000 as drawings or dividends out of the company during the year.
Calculate
the increase in retained earnings at the end of year, if there were
no other
transaction.
$ 5,000
$ 1,000
$ 2,000
$ 3,000
Correct answer
$ 1,000
Feedback
Direct question given for marks. Sales = $ 2,000 + $ 3,000 = $ 5,000. Cost of goods sold =
$ 3,000. Gross profit = $ 5,000 - 3,000 = $ 2,000. Drawings or dividends was $ 1,000.
Increase in retained earnings = $ 2,000 - 1,000 = $ 1,000
In the
annual report, current future strategy of the company can be seen ···/1
from
Option 6
Option 7
Option 8
annual report
Option 5
directors' report
Option 4
introduction
Other:
No correct answers
This form was created inside of Indian Institute of Management Tiruchirappalli.
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7/29/22, 12:50 PM PGPM 2022-24 FRA QUIZ 1 ALL SECTIONS PGPM 2022-24 FRA QUIZ 1 ALL SECTIONS

PGPM 2022-24 FRA QUIZ 1 ALL

The respondent's email (maharshi.p22027@iimtrichy.ac.in) was recorded on submission of

auditing and verifiability

Accounitng period concept

Going concern concept

WE can charge it as business expenses

Business entity concept

Proportionate to the the capital contributed

Proportionate to their profit sharing ratio

None of the other options

There is no impact on retained earnings, as this transaction has 2 components, cash

This form was created inside of Indian Institute of Management Tiruchirappalli.

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