1. Bachelor of Commerce (B Com)
  2. Advance Accounting
  3. Set 1
Chapter: Accounting Standard

The accounting standards Board (India) was formed by the Institute of Chartered Accountants of India in April---------------

A. 1977
B. 1978
C. 2001
D. 2009
Answer» A. 1977

Accounting Standards in India are Issued by the …………..

Answer» A. ICAI

Accounting Standards are beneficial not only to the business enterprises but also to the………….. as well.

A. accountants & auditor
B. Customers
C. Family and Country
D. Traders
Answer» A. accountants & auditor

The important objective of Accounting standards is to the …………..diverse accounting policies and practices at present in use in India.

A. harmonies
B. incomplete
C. complex
D. compact
Answer» A. harmonies

AS-7 deals with accounting for construction contracts in financial statements of

A. contractors
B. Accountants
C. Agents
D. Dealers
Answer» A. contractors

AS -26 deals with the treatment of costs of……………in financial statements.

A. Research & development
B. Construction contract
C. Assets
D. Risk & Rewards
Answer» A. Research & development

Investment made by government as equity in the ownership of an enterprise is known as ------------

A. participation
B. interested
C. refundable
D. not interested
Answer» A. participation

Govt. grants become -----------because of non fulfillment of the conditions attached to that grant.

A. Refundable
B. non refundable
C. overdraft
D. income
Answer» A. Refundable

AS 15 deals with the accounting for retirement benefits in the financial statements of --------------

A. employers
B. employees
C. top manager
D. none of these
Answer» A. employers

Revised AS 15 – Employees benefits is applicable in respect of accounting periods commencing on or after 1st April ----------

A. 2006
B. 1978
C. 2001
D. 2009
Answer» A. 2006

AS …………….also focuses on profit sharing and bonus plan.

A. AS- 15
B. AS-21
C. AS- 28
D. AS- 7
Answer» A. AS- 15

AS-17 segment reporting applies to those companies which have an annual turnover of Rs……….crores or more.

A. 50
B. 80
C. 21
D. 20
Answer» A. 50

…………….reporting helps uses of financial statements to better assess the risk and t returns of the enterprise.

A. segment
B. Account
C. statement
D. management
Answer» A. segment

As per AS-19 …………nlease risk and reward is not transferred to the lessee.

A. operating
B. non operating
C. manageable
D. refundable
Answer» A. operating

In financial lease as per As-19 leased assets is shown in the Balanced sheet of--

A. lessee
B. income
C. loss
D. refund
Answer» A. lessee

AS -20 deals with presentation and Computation of---------------

A. earnings per share
B. profit sharing ratio
C. rate of interest
D. solvency
Answer» A. earnings per share

Earning per share is very important financial ratio is computed for assessing the state of --------------price of shares.

A. Market
B. area
C. shops
D. none of these
Answer» A. Market

Right issue generally made at a price lower that…………….value of shares.

A. Fair
B. fixed
C. computing
D. fluctuating
Answer» A. Fair

Impairment assets is nothing but………………….in the value of assets

A. decrease
B. increase
C. fixed
D. none of these
Answer» A. decrease

Recoverable amount of an asset isof selling price and value of an assets in use.

A. higher
B. lower
C. a and d only
D. fixed
Answer» A. higher

AS 7 does not apply to Contractors

A. false
B. true
C. none of the above
D. may be false
Answer» A. false

As per AS architects services are not included in construction contract.

A. false
B. true
C. may be true
D. both a and b
Answer» A. false

As per AS 7 Research and Development cost is to be excluded from contract cost .

A. true
B. false
C. may be false
D. neither a nor b
Answer» A. true

AS – 7 deals with accounting for Government grants.

A. false
B. true
C. may be true
D. neither true nor false
Answer» A. false

As per AS 15 accumulated compensated absences can be carried forward if the current period entitlement is not used in full.

A. true
B. false
C. may be false
D. may be true
Answer» A. true
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