MCQ Financial & Strategic Management

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All Past Paper MCQ Series:
FMSM: https://www.youtube.com/playlist?list=PL6YclYHIu_14jpk2B2yg2ygYaguZu-S-3

PUCHWORDS MARATHON:
FM: https://youtu.be/6JytQfhJDcs
SM: https://youtu.be/o9JmU6UEWlo

by Nihar Vasa, your mentor for Tax

SOME IMPORTANT CMA CLARIFICATION (FOR REMOVAL OF CONFUSION)
1. Current maturities of Long term borrowings shall be disclosed under “Short Term Borrowings”.

2. For unlisted companies issuing debentures on private placement basis, the DRR will be 10% of the value of outstanding debentures. (This is Just for reserve, not DRR Investment)

3. Every company required to create/maintain Debenture Redemption Reserve (DRR Investment) shall before the 30th day of April of each year, deposit or invest (as the case may be) at least 15% of the amount of its debentures maturing during the year ending on the 31st day of March next year in the prescribed mode.

4. Debenture Interest Accrued and Due is shown in the balance sheet under Other Current Liabilities.

5. Debenture Interest Accrued but not Due is shown in the balance sheet under Other Current Liabilities.
(So, now both Point 4 & 5 are shown under Other Current Liablities only)

6. Classification for Cash Flow Statement:

Financial Enterprise:
a) Interest Paid, Interest Received, Dividend Received: Operating Activities
b) Dividend Paid: Financing Activities

Non-Financial Enterprise:
a) Interest Paid & Dividend Paid: Financing Activities
b) Interest Received & Dividend Received: Investing Activities

7. IFRS Standards are now required in more than 140 Jurisdictions. (please ignore the latest figure on the internet, it has not been notified by ICSI)

8. Definition of SMC:
“Small and Medium Sized Company” (SMC) means, a company-
(i) whose equity or debt securities are not listed or are not in the process of listing on any stock exchange, whether in India or outside India;
(ii) which is not a bank, financial institution or an insurance company;
(iii) whose turnover (excluding other income) does not exceed rupees 250 crore in the immediately preceding accounting year;
(iv) which does not have borrowings (including public deposits) in excess of rupees 50 crore at any time during the immediately preceding accounting year; and
(v) which is not a holding or subsidiary company of a company which is not a small and medium-sized company.

9. Applicability of AS:
NON CORPORATE ENTITIES:
LEVEL I:
Non-corporate entities which fall in any one or more of the following categories, at the end of the relevant accounting period, are classified as Level I entities:
(i) Entities whose equity or debt securities are listed or are in the process of listing on any stock exchange, whether in India or outside India.

(ii) Banks (including co-operative banks), financial institutions or entities carrying on insurance business.

(iii) All commercial, industrial and business reporting entities, whose turnover (excluding other income)exceeds rupees 250 crore in the immediately preceding accounting year.

(iv) All commercial, industrial and business reporting entities having borrowings (including public deposits)in excess of rupees 50 crore at any time during the immediately preceding accounting year.

(v) Holding and subsidiary entities of any one of the above. Level II Entities (SMEs)


LEVEL II:
Non-corporate entities which are not Level I entities but fall in any one or more of the following categories are classified as Level II entities:
(i) All commercial, industrial and business reporting entities, whose turnover (excluding other income) exceeds rupees 1 crore but does not exceed 50 crore in the immediately preceding accounting year.

(ii) All commercial, industrial and business reporting entities having borrowings (including public deposits)in excess of rupees 1 crore but not in excess of rupees 10 crore at any time during the immediately preceding accounting year.

(iii) Holding and subsidiary entities of any one of the above. Level III /Entities (SMEs)


LEVEL III:
Non-corporate entities which are not covered under Level I and Level II are considered as Level III entities.

PLEASE AVOIID CROSS QUESTIONING ON THESE POINTS. I HAVE USED MY JUDGEMENTS AND THEN TOLD. ITS UP TO YOU, WHETHER TO FOLLOW OR NOT.

CMA PUCHWORDS MARATHON:
CMA 1: https://youtu.be/MOti1pVFWKg
CMA 2: https://youtu.be/t_RzCSl_LHU

HOW TO REVISE CMA BEFORE EXAMS BY SINGLE MODULE STUDENTS
https://www.instagram.com/reel/Cmir4-iDG6l/?igshid=MDJmNzVkMjY=