Start learning →

CA Inter AS 13 Accounting for Investments — practice questions — page 2

Explore 64 free AS 13 Accounting for Investments questions in CA Inter Accounting. Open each question or exercise to read its content, reference answers and available explanation.

Practise AS 13 Accounting for Investments with Quill →

AS 13 Accounting for Investments questions and exercises with answers

Showing questions 31–60 of 64.

Restrictions on distributions by the investee may affect:Read the answer and worked solution →A decline in a long term investment is assessed on which basis?Read the answer and worked solution →A reduction made on a long term investment is reversed when:Read the answer and worked solution →Cost of co-operative society shares needed to hold an investment property is:Read the answer and worked solution →Carrying amount Rs 1,50,000, net sale price Rs 1,80,000. The Rs 30,000 difference goes to:Read the answer and worked solution →The difference between carrying amount and net disposal proceeds is:Read the answer and worked solution →On part sale of a holding, carrying amount allocated is based on:Read the answer and worked solution →A holding has 500 shares at Rs 30 and 500 at Rs 50. Selling 300 for net Rs 15,000 gives what gain on average cost?Read the answer and worked solution →A current investment of cost 60,000 written down to 52,000 is sold for net 58,000. Result?Read the answer and worked solution →Long-term investments moved to current are transferred at:Read the answer and worked solution →Long term shares of cost 90,000 and carrying amount 70,000 become current. Transfer value?Read the answer and worked solution →A switch of holdings from current to long term is recorded at:Read the answer and worked solution →A current investment of cost 50,000 and fair value 58,000 is reclassified as long term. Transfer value?Read the answer and worked solution →The aggregate market value must be disclosed for:Read the answer and worked solution →Dividends from which investee must be shown separately?Read the answer and worked solution →Gross investment income is stated; tax deducted at source goes under:Read the answer and worked solution →Income recognition on investments is covered by:Read the answer and worked solution →Absent a statute, investments may be classed as:Read the answer and worked solution →Securities held as stock-in-trade are accounted for much like:Read the answer and worked solution →The cost formula for securities held as stock-in-trade follows:Read the answer and worked solution →For AS 13, subsidiary company is as defined in:Read the answer and worked solution →In AS 13, bold italic and plain type paragraphs carry:Read the answer and worked solution →Where an active market exists, the best evidence of fair value is generally:Read the answer and worked solution →An equity share investment represents a stake in:Read the answer and worked solution →A debt investment is a monetary amount owing to the holder that usually bears:Read the answer and worked solution →Shares bought for Rs 2,00,000 carry brokerage of 1% and stamp duty of 0.25%. Cost?Read the answer and worked solution →Disclosure of investments must include the policies for determining:Read the answer and worked solution →A significant restriction on selling an investment must be:Read the answer and worked solution →Interest and rentals on investments are shown separately for:Read the answer and worked solution →If dividend cannot be allocated except arbitrarily, cost is cut only if it:Read the answer and worked solution →

Worked practice questions

Restrictions on distributions by the investee may affect:

  1. the original date of purchase
  2. the gross income reported
  3. brokerage already paid in full
  4. the value put on the investment
Show answer and solution

Correct answer: D. the value put on the investment

Limits on payouts or on disposal bear on what the holding is considered to be worth.

Open this question →

A decline in a long term investment is assessed on which basis?

  1. overall portfolio basis
  2. individual investment basis
  3. industry-wise basis
  4. category-wise basis
Show answer and solution

Correct answer: B. individual investment basis

Because each long term holding is usually of individual importance, it is tested one by one.

Open this question →

A reduction made on a long term investment is reversed when:

  1. the holding turns into a current one
  2. management seeks higher profit
  3. the auditor wants it reversed
  4. value rises or the reason ceases
Show answer and solution

Correct answer: D. value rises or the reason ceases

The reduction is written back if the investment value rises or the cause of the decline no longer exists.

Open this question →

How to practise

  1. Choose a AS 13 Accounting for Investments question and try to work out your answer.
  2. Open the question to check the correct answer and read its worked solution.
  3. Continue in the app for bite-sized lessons, explanations and review with Quill. You can start without creating an account.

More Accounting topics

AS 3 Cash Flow StatementSchedule III Division I Financial StatementsAS 19 LeasesValuation of Inventories (AS 2)AS 22 Taxes on IncomeAS 28 Impairment of AssetsProperty, Plant and EquipmentAS 17 Segment Reporting