S1: Under Ind AS 109, the Expected Credit Loss (ECL) model requires recognition of 12-month ECL for all financial assets initially. S2: If there is a significant increase in credit risk since initial recognition, lifetime ECL must be recognized. Which statement(s) is/are correct? MCQ with Answer and Explanation
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Question #1
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A company issues 20,000 equity shares of ₹10 each at a premium of ₹2 per share. Total amount received on application if full amount called on application will be:
Correct Answer: Option B
Explanation:
Issue price per share = ₹10 + ₹2 = ₹12. If whole amount called on application, total = 20,000 × 12 = ₹2,40,000.
Issue price per share = ₹10 + ₹2 = ₹12. If whole amount called on application, total = 20,000 × 12 = ₹2,40,000.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
Question #2
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In the indirect method of cash flow, net profit is adjusted for:
Correct Answer: Option C
Explanation:
Indirect method starts with net profit and adjusts for non-cash expenses, non-operating items, and working capital changes.
Indirect method starts with net profit and adjusts for non-cash expenses, non-operating items, and working capital changes.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
Question #3
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Which of the following ratios is a measure of long-term solvency?
Correct Answer: Option D
Explanation:
Debt-equity ratio indicates financial leverage and long-term solvency.
Debt-equity ratio indicates financial leverage and long-term solvency.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
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