Corporate Accounting solved MCQs

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1. How many IFRS are in force as of now?

a. 65

B. 36

c. 37

d. 38

2. Total no of interpretations applicable till date?

a. 24

B. 26

c. 28

d. 30

3. What is the transition date of IFRS in India?

a. april 1, 2010

B. april 1, 2011

c. april 1, 2012

d. april 1, 2008

4. As per IAS 1, Presentation of financial statement, ______ no of items would constitutecomplete set of financial statements.

a. atleast 5

B. atleast 6

c. 5

d. 6

5. GAAP stands for

a. generally accepted accounting principles

B. globally accepted accounting practice

c. generally allowable accounting principles

d. generally allowable accounting practice

6. Whether financial reviews by management, environment reports and value added financialstatements are outside the scope of international financial reporting standards (IFRSs)?

a. yes

B. no

c. not mentioned in ifrs

d. still in consideration

7. What is the term used to describe the time between the acquisition of assets for processing andtheir realization in cash or cash equivalents?

a. processing cycle

B. turnover

c. operating cycle

d. turnaround

8. Which sections of an annual report do IFRSs apply to?

a. management report

B. financial statements

c. auditors report

d. entire annual report

9. How many formats are permitted for income and expense items under Ind AS 1?

a. one

B. two

c. three

d. four

10. Where should extraordinary items appear in an entity’s Statement of Comprehensive Income?

a. other comprehensive income

B. income statement

c. notes

d. nowhere

11. When is offsetting permitted under Ind AS 1?

a. always

B. never

c. when required or permitted under an ifrs

d. when approved by the board of directors

12. Which of the following is not a component of a Statement of Financial Position?

a. non-current assets

B. retained earnings

c. cost of goods sold

d. deferred tax

13. Which of the following is not a requirement in the financial statements under Ind AS 1?

a. name of the entity

B. chairman’s commentary on performance

c. the accounting period

d. presentation currency

14. Under Ind AS 1 how often should financial statements be prepared?

a. at least annually

B. no more than annually

c. as often as the company requires

d. monthly

15. Correcting the recognition measurement and disclosure of amounts in financial statements asif a prior period error had never occurred. This is:

a. retrospective restatement

B. retrospective application

c. changes in accounting estimate

d. delayed application

16. Under Ind AS 16 how often the useful life of an asset should be reviewed?

a. at least at each financial year end

B. every six months

c. at management’s discretion

d. never

17. Under Ind AS 16 if an asset is idle

a. depreciation is paused

B. depreciation for the entire period does not apply

c. depreciation is ignored

d. depreciation continues

18. Which of these is an allowable cost of an asset under Ind AS 16?

a. general overheads

B. professional fees

c. administration expenses

19. What is the net amount an entity expects to obtain for an asset at the end of its useful life?

a. depreciated value

B. residual value

c. present value

d. fair value

20. Under Ind AS 16, which of the following is not allowable as a directly attributable cost of amachine?

a. delivery

B. site preparation

c. estimated dismantling costs

d. initial test batches

21. What is the amount an asset could achieve if sold between knowledgeable, willing parties inan arm’s length transaction?

a. current value

B. net present value

c. written down value

d. fair value

22. Which of the following is covered by Ind AS 16 Property, Plant and Equipment?

a. office buildings

B. assets held for sale

c. exploration assets

d. biological assets related to agricultural activity

23. Which of the following disclosures is not required when an asset is revalued?

a. name of valuer

B. revaluation surplus

c. effective date of revaluation

d. whether valuer was independent

24. Under Ind AS 16, which two subsequent accounting treatments are allowed subsequently toinitial recognition?

a. cost model and present value model

B. cost model and revaluation model

c. fair value model and revaluation model

d. fair value model and cost model

25. When an asset is sold or disposed of, where is the gain or loss recognised?

a. asset disposal account

B. profit and loss

c. revaluation reserve

d. depreciation

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