FRPA - Quiz

1. Authorized share capital is authorized by ____________MoA

2. A share in a company that the owner loses (forfeits) by failing to meet
the purchase requirements. forfeited share
3. Book building, is a process a company should follow whenever it goes
to public
4. Underwriting is done by a ______________merchant banker
5. face value of a share will be accounted in _______________ section of
balance sheet
6. share premium is a part of _________________
7. preference shares wont have ________________
8. DVR shares will pay _____________ dividends and will be traded at
____________ to normal equity shares
9. Book value is calculated as _______________ per share
10.
Convertibles are the instruments that could be converted into
_____________
11.
Warrants brings future ______________ to the firm
12.
Rights are issued to ______________ shareholders at _____________
13.
Bonus is just a _______________ of reserves, capitilisation
14.
Stock split is used to bring the stock price within ________________
range
15.
Reverse split is used to reduce the number of shares
_________________
16.
Stock option is sold by one party to another that gives the buyer
the ___________, but not the ____________, to buy or sell a stock at an
agreed-upon price within a certain period or on a specific date.
17.
By reducing the number of shares outstanding on the market,
__________ increase the proportion of shares a company owns.
18.
Redemption means _____________
19.
Capital reserve cannot be used for the purpose of
_________________
20.
Revenue reserve is the part of the profit ____________ in the
business.
21.
Reserve is an ____________________of profit and not an expense
22.
Revaluation reserve is an example of _____________ reserve
23.
Surplus is liability
24.
Deferred tax arises either due to _____________ difference or due
to state tax policies
25.
When the event is certain, but the amount is not known. We call
that as ____________
26.
Contingent liability is one where the incidence of event as well as
the amount involved are uncertain
27.
When both are certain it is called as accrual
28.
Capitalization means treating an expense as ___________________
29.
Amortization is the process of expiration of the _______ of an
intangible asset
30.
Depreciation is not a _______________ mechanism
31.
Intangible assets are assets whose value can only be ___________
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32.
When a going concern is purchased, the purchase price paid in
excess of the fair value of the assets, is considered to be
_________________
33.
Life of intangible assets cannot exceed more than ____________
34.
Lease is treated both as ______________in the balance sheet
35.
Related party - entities frequently carry on parts of their
activities through subsidiaries, joint ventures and associates. In those
circumstances, the entity has the ability to affect the financial and
operating policies of the investee through the presence of control, joint
control or significant influence. The transactions arising out of these
are known to be
36.
Internally generated intangibles cannot be recognized in the
books of accounts
37.
Companies need to record the cost of their Ending Inventory at
the lower of cost and NRV, to ensure that their inventory and income
statement are not overstated.
38.
Provision for Diminution is to made in the case of longterm
investments as per the concept of prudence
39.
An asset is impaired when its carrying amount exceeds its
recoverable amount
40.
Current investments are carried in the balance sheet at their
____________LCM
41.
Non-current investments are carried in the balance sheet at
_____________
42.
Secured loans are the secured against the _____________ of the
company
43.
when company Y goes into dissolution, the assets over which the
charge has been created will be distributed in proportion to the
creditors' respective holdings is known as which charge
44.
Consortium lending - type of lending in which two or more banks
come together to finance the big projects requiring huge amount of
money.
45.
Preference shares which are entitled to take part in surplus
profits, i.e. profit proposed to be distributed among the
shareholders after dividend to preference and ordinary
shareholders, are termed as participatory preference shares.
46.
If unpaid dividend is not carried forward but lapses then
such shares are known as non- cumulative preference shares
47.
preference shares are redeemable in ten years
48.
Encumbered shares shares owned by one party but subject to
another partys valid claim are known to be
49.
Treasury shares are own shares acquired through a buy back
arrangement and held by a company
50.
Book building is a Price discovery mechanism
51.
Green shoe option - is a clause in the underwriting agreement of
an IPO, which allows to sell additional shares, to the public if the
demand exceeds expectations
52.
NRV, diminution and impairment are done as per the concept of
Prudence
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53.
if a firm believes that some of its debtors may default, it should
act on this by making sure that all possible losses are recorded in the
books. Pru
54.
the fact that the business is separate and distinguishable from its
owner is best explained by this concept. Bus.entity
55.
everything a firm owns, it also owes it to somebody. This
coincidence is explained by this cocept. Dual
56.
if a cashier buys a cashbook in which to keep his firms books.,
he would not try to account for every single sheet of paper in the book
because of this concept mat
57.
this concept states that if (say) the weighted average method of
inventory valuation is used in one year, then it should also be used the
nexr year - con
58.
a firm may hold a certain stock, which is heavily in demand.
Consequently the market value of this stock may be increasing. The
normal accounting procedure is to ignore this because of which
concept? Cost
59.
if we, receive an order for goods, we would not include the value
of it in our sales figures yet owing to this concept reali
60.
a business makes a loss for the second year running, but a
certain concept tells us that if we carry on trading unless we are
notified to the contrary. Which concept we are talking about? going
61.
profit calculations are based on expenses incurred during the
period rather than those paid. This statement effectively describes
which concept? accrual
62.
the management of X ltd, is remarkably incompetent, but the
firms accountant cannot take this into account when preparing the
books because of which concept? money measurement
63.
the R&D section of X ltd, however is doing so well that they
anticipate a huge upturn in the sales next year. The accountants
cannot increase the book value of the patents held though, because of
this concept. pru
64.
the book keeper for X ltd , would only be concerned with that
total value of its owners drawings, not with how he had spent it
because of which concept? entity
65.
a business agreement in which the parties agree to develop, for
a finite time, a new entity and new assets by contributing equity Joint
venture
66.
A company whose voting stock is more than 50% controlled by
another company, usually referred to as the parent company or holding
company Subsidiary
67.
a company in which another company owns a significant portion
of voting shares Associate
68.
the time between the acquisition of assets for processing and
their realization in cash or cash equivalents operating cycle
69.
it is expected to be settled in the companys normal operating
cycle current liability
70.
it is expected to be realized within twelve months after the
reporting date current asset
71.
these need not have same voting rights shares with DVR
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72.
means that when company Y goes into dissolution, the assets
over which the charge has been created will be distributed in
proportion to the creditors' respective holdings. Pari passu
73.
A resource created by the accumulated capital surplus capital
reserve
74.
Where a company issues shares at a premium, whether for cash
or otherwise, a sum equal to the aggregate amount or value of the
premiums on those shares shall be transferred to an account, to be
called, Securities premium reserve
75.
A reserve specifically represented by earmarked investments
shall be termed as a fund
76.
Debit balance of statement of profit and loss shall be shown as a
negative figure under the head surplus
77.
An asset under finance lease can be shown as the asset of the
company, even while it doesnt have the ownership due to this
principle substance over form
78.
an amount set aside for the probable, but uncertain, economic
obligations of an enterprise Provision
79.
a possible obligation that arises from past events and the
existence of which will be confirmed only by the occurrence or
nonoccurrence of one or more uncertain future events not wholly
within the control of the enterprise contingent liability
80.
the amount by which the carrying amount of an asset exceeds its
recoverable amount impairment loss
81.
transactions and events that are unusual in nature and
infrequent in occurrence and are material in amount extraordinary
items
82.
These are the investments kept for the purpose of sale over
many years longterm investments
83.
a future amount of money that has been discounted to reflect its
current value, as if it existed today present value
84.
a process through which illiquid financial assets are pooled and
repackaged into marketable securities securitization
85.
a financial transaction whereby a business sells its accounts
receivable to a third party at a discount.- factoring
86.
A provision made to recognise a decline, other than temporary,
in the value of the investments is, diminution
87.
Any investment in relation to the running of business are called,
trade investments
88.
investments traded on an exchange that has a visible market
value quoted investments
89.
an inland tax on the sale, or production for sale, of specific goods
or a tax on a good produced for sale, or sold, within a country excise
duty
90.
goods held by a business for sale stock in trade
91.
accounting entry that reflects materially large cost/revenue that
derives from a firms normal course of business exceptional items
92.
the amounts of income taxes recoverable in future periods
deferred tax assets
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93.
A rough measurement of the amount of a company's profit that
can be allocated to one share of its stock EPS
94.
A lower EPS accruing to the existing shareholders if the option of
conversion to equity stocks is invoked on convertibles. diluted EPS
95.
Net gain/loss on foreign currency transactions and translations
are accounted as a part of, Finance costs
96.
What will happen to the shares bought back from the market?