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30+ Accounting Standard Solved MCQs

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Chapter: Accounting Standard

1.	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

discuss

2.	Accounting Standards in India are Issued by the …………..
A.	ICAI
B.	BMCC
C.	IT
D.	IMA
Answer» A. ICAI

discuss

3.	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

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4.	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

discuss

5.	AS-7 deals with accounting for construction contracts in financial statements of
A.	contractors
B.	Accountants
C.	Agents
D.	Dealers
Answer» A. contractors

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6.	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

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7.	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

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8.	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

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9.	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

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10.	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

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11.	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

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12.	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

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13.	…………….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

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14.	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

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15.	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

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16.	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

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17.	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

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18.	Right issue generally made at a price lower that…………….value of shares.
A.	Fair
B.	fixed
C.	computing
D.	fluctuating
Answer» A. Fair

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19.	Impairment assets is nothing but………………….in the value of assets
A.	decrease
B.	increase
C.	fixed
D.	none of these
Answer» A. decrease

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20.	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

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21.	AS 7 does not apply to Contractors
A.	false
B.	true
C.	none of the above
D.	may be false
Answer» A. false

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22.	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

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23.	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

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24.	AS – 7 deals with accounting for Government grants.
A.	false
B.	true
C.	may be true
D.	neither true nor false
Answer» A. false

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25.	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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26.	A parent co. should account for the investment in subsidiaries in accordance with AS -13
A.	true
B.	false
C.	May be true
D.	only b
Answer» A. true

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27.	A-5 does not indicate the frequency of interim financial report.
A.	true
B.	either true or false
C.	both a and b
D.	only false
Answer» A. true

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28.	A 25 focuses on change in accounting policies also.
A.	true
B.	only false
C.	may be true
D.	may be false
Answer» A. true

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29.	As per As- 28 impairment of asset means decrease in the value of asset.
A.	true
B.	false
C.	only true
D.	May be true
Answer» A. true

discuss

30.	As per AS -30 prepaid expenses are not financial instruments.
A.	true
B.	false
C.	neither true nor false
D.	may be false.
Answer» A. true

discuss

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30+ Accounting Standard Solved MCQs

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

AS 7 does not apply to Contractors

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

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

AS – 7 deals with accounting for Government grants.

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

A parent co. should account for the investment in subsidiaries in accordance with AS -13

A-5 does not indicate the frequency of interim financial report.

A 25 focuses on change in accounting policies also.

As per As- 28 impairment of asset means decrease in the value of asset.

As per AS -30 prepaid expenses are not financial instruments.