Advanced Corporate Accounting Solved MCQs

These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Master of Commerce (M.com) .

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1.	_______________ are the financial statements of a group of companies.
A.	Subsidiary Accounts
B.	Group Accounts
C.	Holding Accounts
D.	None of the above
Answer» B. Group Accounts

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2.	___________ establishes principles for presenting and preparing consolidated financial statements when an entity controls one or more other entities.
A.	IFRS 12
B.	IFRS 17
C.	IFRS 10
D.	IFRS 11
Answer» C. IFRS 10

discuss

3.	A _________ includes the income and expenses of a subsidiary in the consolidated financial statements from the date it gains control until the date when the reporting entity ceases to control the subsidiary.
A.	Holding entity
B.	Reporting entity
C.	Group Accounts
D.	AS 110
Answer» B. Reporting entity

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4.	______________ is an asset representing the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.
A.	Goodwill
B.	Capital Reserve
C.	Plant and Machinery
D.	Drawings
Answer» A. Goodwill

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5.	___________ transactions are transactions between entities within a group of entities and that group is consolidated into one set of Consolidated Financial Statements.
A.	Inter-group
B.	Intra-group
C.	Group
D.	Financial
Answer» B. Intra-group

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6.	The _____________ account appear in the Balance Sheet of the Holding company at the time of consolidation.
A.	Bonus Share
B.	Security Premium
C.	share premium
D.	Capital Reserve
Answer» C. share premium

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7.	__________ is the corporate management term for the act of reorganizing the legal, ownership, operational or other structures of a company for the purpose of making it more profitable or better organized for its present needs.
A.	Merger
B.	Restructuring
C.	External Reconstruction
D.	Consolidation
Answer» B. Restructuring

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8.	A merger is defined as the joining of two or more companies to form a single legal entity.
A.	Acquisition
B.	Restructuring
C.	Merger
D.	Internal Construction
Answer» C. Merger

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9.	All business combinations must be treated as _________ for accounting purposes.
A.	Acquisition
B.	Restructuring
C.	Merger
D.	Internal Construction
Answer» A. Acquisition

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10.	In external reconstruction, the liquidated company is called ______________________.
A.	Purchasing Company
B.	Vendor Company
C.	Holding Company
D.	Group Company
Answer» B. Vendor Company

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11.	The tax effect on the timing differences is termed as ___________________.
A.	Current Tax expense
B.	Income tax
C.	Deferred Tax
D.	Provision for tax
Answer» C. Deferred Tax

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12.	The objective of ________________is to prescribe, for lessees and lessors, the appropriate accounting policies and disclosures to apply in relation to finance and operating leases.
A.	IAS 11
B.	IAS 17
C.	IAS 7
D.	IAS 19
Answer» B. IAS 17

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13.	In finance lease agreement, the option for the lessee to purchase the property or equipment at a specific price is known as __________________________.
A.	Balloon
B.	Operating Leasing
C.	Running Cost
D.	Administrative Expense
Answer» A. Balloon

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14.	________________ provides information to the management regarding human resource cost and value.
A.	MIS
B.	Human Resource Accounting
C.	Financial Statements
D.	Cost Sheet
Answer» B. Human Resource Accounting

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15.	______________________is the assistance of finance professionals to settle disputes concerning allegations, fraudulence, suspicion of fraud and misconduct in business.
A.	Forensic accounting
B.	Human Resource Accounting
C.	Financial Accounting
D.	Cost Accounting
Answer» A. Forensic accounting

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16.	____________ aims to measure and inform the general public about the social welfare activities undertaken by the enterprise and their effects on the society
A.	Corporate Accounting
B.	Forensic Accounting
C.	Social Audit
D.	Environmental Accounting
Answer» C. Social Audit

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17.	________________ also called green accounting.
A.	Corporate Social Responsibility
B.	Corporate Accounting
C.	Environmental accounting
D.	Forensic Accounting
Answer» C. Environmental accounting

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18.	______________manages business finances effectively, make the right decisions and maximize your profits.
A.	Corporate Accounting
B.	Inflation Accounting
C.	Environmental Accounting
D.	Proactive Accounting
Answer» D. Proactive Accounting

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19.	_____________ refers to the process of adjusting the financial statements of a company to show the real financial position of the company during the inflationary period.
A.	Corporate Accounting
B.	Inflation Accounting
C.	Environmental Accounting
D.	Proactive Accounting
Answer» B. Inflation Accounting

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20.	Increase in the price of various goods and services over a period of time is known as ___________________
A.	Deflation
B.	Price Level Changes
C.	Shift
D.	Inflation
Answer» D. Inflation

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21.	During inflation the purchasing power of money ___________________.
A.	Increases
B.	Does not change
C.	Shift
D.	Decreases
Answer» A. Increases

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22.	Price for changes accounting can be done by the following method__________________.
A.	Current purchasing power, Current Value Accounting
B.	Replacement Cost Accounting, Current Cost Accounting
C.	Both a and b
D.	None of the Above
Answer» C. Both a and b

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23.	_________________Accounting deals with employees and management in an organization.
A.	Inflation
B.	Human Resource
C.	Environment
D.	Forensic
Answer» B. Human Resource

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24.	Forensic Accounting is very much useful to _____________ industry.
A.	Banking
B.	Communication
C.	Insurance
D.	None of the above
Answer» C. Insurance

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25.	A branch of accounting which decodes the human nature to hide failures, conceal problems, defend wrong decisions, and cover up mistakes is known as___________________.
A.	Inflation Accounting
B.	Human Resource Accounting
C.	Environment Accounting
D.	Forensic Accounting
Answer» D. Forensic Accounting

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26.	A ______________Accounting signifies the activities related to the conservation of Environment.
A.	Inflation
B.	Human Resource
C.	Environment
D.	Forensic
Answer» C. Environment

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27.	The main elements of environmental accounting are______________________.
A.	Environmental Conservation costs and activities and environmental benefits
B.	Environmental activities and environmental benefits
C.	Environmental conversion costs and environmental benefits
D.	None of the above
Answer» A. Environmental Conservation costs and activities and environmental benefits

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28.	What is the classical view of management's social responsibility?
A.	To create specific environment in work place
B.	To maximize profit
C.	To protect and improve society’s welfare
D.	All of the above
Answer» B. To maximize profit

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29.	__________ is when a firm engages in social actions because of its obligation to meet certain economic and legal responsibilities
A.	SocialObligation
B.	Social Responsibility
C.	Social Responsiveness
D.	None of the above
Answer» A. SocialObligation

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30.	The recognition of the close link between an organisation's decisions and activities and its impact on the natural environment is called __________.
A.	Global Environment
B.	Greening of management
C.	Social actions
D.	None of the above
Answer» B. Greening of management

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31.	The stakeholder view of social responsibility states that organisations must respond to the needs of
A.	employees and customers
B.	shareholders and owners
C.	all interested parties
D.	all those who might sue the organisation
Answer» C. all interested parties

discuss

32.	_____________ establishes the principles that an entity applies when reporting information about the nature, amount, timing and uncertainty of revenue and cash flows from a contract with a customer.
A.	IFRS 18
B.	IFRS 14
C.	IFRS 15
D.	IFRS 17
Answer» C. IFRS 15

discuss

33.	The objective of _________ is to establish the principles that an entity shall apply to report useful information to users of financial statements about the nature, amount, timing and uncertainty of revenue and cash flows arising from a contract with a customer.
A.	Ind AS 115
B.	Ind AS 100
C.	Ind AS 110
D.	Ind AS 114
Answer» A. Ind AS 115

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34.	_________is about the measurement of the items in the consolidated financial statements, such as goodwill, non-controlling interest, etc.
A.	IFRS 4
B.	IFRS 10
C.	IFRS 9
D.	IFRS 3
Answer» D. IFRS 3

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35.	Goodwill on amalgamation can rise only if ________Method is followed.
A.	Valuation
B.	Percentage
C.	Purchase
D.	Merger
Answer» C. Purchase

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36.	_____________ is the process of significantly changing a company's business model, management team or financial structure to address challenges and increase shareholder value.
A.	Corporate restructuring
B.	Corporate reporting
C.	Amalgamation
D.	Reconstruction
Answer» A. Corporate restructuring

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37.	A merger of two or more companies that compete in the same industry.
A.	Horizontal
B.	Conglomerate
C.	Vertical
D.	None of the above
Answer» A. Horizontal

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38.	Merger where two companies are in the same or related industries but do not offer the same products, but related products and may share similar distribution channels, providing synergies for the merger is known as ____________ Merger.
A.	Horizontal
B.	Co generic
C.	Vertical
D.	Conglomerate
Answer» B. Co generic

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39.	A form of corporate restructuring in which the entity's business operations are segregated into one or more components is known as __________________.
A.	Horizontal
B.	Disinvestment
C.	Demerger
D.	Takeover
Answer» C. Demerger

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40.	When one company takes over the management of the target company with the permission of the board, it is known as ________________ takeover.
A.	Friendly
B.	Hostile
C.	Acquiring
D.	Disinvestment
Answer» A. Friendly

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41.	Any agreement between two or more parties to collaborate with each other, in order to achieve certain objectives while continuing to remain independent organizations is called _______________.
A.	Strategic alliance
B.	Franchising
C.	Joint Venture
D.	Disinvestment
Answer» A. Strategic alliance

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42.	________________accounting is the process by which companies and organizations record the financial impact of agreements to rent or finance the rights to use specific assets.
A.	Corporate
B.	Responsibility
C.	Green
D.	Lease
Answer» D. Lease

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43.	A ______________ is defined as an entity that provides the right to use an asset for a period of time in exchange for consideration.
A.	Contractor
B.	lessor
C.	Lessee
D.	None of the above
Answer» B. lessor

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44.	A ____________ is a lease that transfers substantially all the risks and rewards incidental to ownership of an asset. Title may or may not eventually be transferred.
A.	Finance lease
B.	Operating lease
C.	Lessor
D.	Contract
Answer» A. Finance lease

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45.	____________ is the estimated remaining period, from the commencement of the lease term, without limitation by the lease term, over which the economic benefits embodied in the asset are expected to be consumed by the entity.
A.	Economic Life
B.	Useful Life
C.	Fair value
D.	None of the above
Answer» B. Useful Life

discuss

46.	______________ is a term used in the field of accounting which measures the environmental and natural resources accounting, which tends to incorporate the natural and environmental assets of the firm and it’s resources.
A.	Social Accounting
B.	Green Accounting
C.	Inflation Accounting
D.	None of the above
Answer» B. Green Accounting

discuss

47.	_________ highlights both the contribution of business enterprises to economic wellbeing and the costs imposed in the form of pollution or resource degradation.
A.	Social Accounting
B.	Environmental Accounting
C.	Inflation Accounting
D.	None of the above
Answer» B. Environmental Accounting

discuss

48.	_______________ is concerned with the development of measurement system to monitor social performance.
A.	Social Accounting
B.	Environmental Accounting
C.	Inflation Accounting
D.	None of the above
Answer» A. Social Accounting

discuss

49.	__________ is the method were all assets and liabilities are recorded on a balance sheet according to the cost of replacing them rather than their historical costs.
A.	Replacement Cost Accounting
B.	Current Value
C.	Current Cost Accounting
D.	None of the above
Answer» A. Replacement Cost Accounting

discuss

50.	___________ acts as an evidence of social commitment.
A.	Social Accounting
B.	Environmental Accounting
C.	Inflation Accounting
D.	None of the above
Answer» A. Social Accounting

discuss

Advanced Corporate Accounting Solved MCQs

_______________ are the financial statements of a group of companies.

___________ establishes principles for presenting and preparing consolidated financial statements when an entity controls one or more other entities.

A _________ includes the income and expenses of a subsidiary in the consolidated financial statements from the date it gains control until the date when the reporting entity ceases to control the subsidiary.

______________ is an asset representing the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.

___________ transactions are transactions between entities within a group of entities and that group is consolidated into one set of Consolidated Financial Statements.

The _____________ account appear in the Balance Sheet of the Holding company at the time of consolidation.

__________ is the corporate management term for the act of reorganizing the legal, ownership, operational or other structures of a company for the purpose of making it more profitable or better organized for its present needs.

A merger is defined as the joining of two or more companies to form a single legal entity.

All business combinations must be treated as _________ for accounting purposes.

In external reconstruction, the liquidated company is called ______________________.

The tax effect on the timing differences is termed as ___________________.

The objective of ________________is to prescribe, for lessees and lessors, the appropriate accounting policies and disclosures to apply in relation to finance and operating leases.

In finance lease agreement, the option for the lessee to purchase the property or equipment at a specific price is known as __________________________.

________________ provides information to the management regarding human resource cost and value.

______________________is the assistance of finance professionals to settle disputes concerning allegations, fraudulence, suspicion of fraud and misconduct in business.

____________ aims to measure and inform the general public about the social welfare activities undertaken by the enterprise and their effects on the society

________________ also called green accounting.

______________manages business finances effectively, make the right decisions and maximize your profits.

_____________ refers to the process of adjusting the financial statements of a company to show the real financial position of the company during the inflationary period.

Increase in the price of various goods and services over a period of time is known as ___________________

During inflation the purchasing power of money ___________________.

Price for changes accounting can be done by the following method__________________.

_________________Accounting deals with employees and management in an organization.

Forensic Accounting is very much useful to _____________ industry.

A branch of accounting which decodes the human nature to hide failures, conceal problems, defend wrong decisions, and cover up mistakes is known as___________________.

A ______________Accounting signifies the activities related to the conservation of Environment.

The main elements of environmental accounting are______________________.

What is the classical view of management's social responsibility?

__________ is when a firm engages in social actions because of its obligation to meet certain economic and legal responsibilities

The recognition of the close link between an organisation's decisions and activities and its impact on the natural environment is called __________.

The stakeholder view of social responsibility states that organisations must respond to the needs of

_____________ establishes the principles that an entity applies when reporting information about the nature, amount, timing and uncertainty of revenue and cash flows from a contract with a customer.

The objective of _________ is to establish the principles that an entity shall apply to report useful information to users of financial statements about the nature, amount, timing and uncertainty of revenue and cash flows arising from a contract with a customer.

_________is about the measurement of the items in the consolidated financial statements, such as goodwill, non-controlling interest, etc.

Goodwill on amalgamation can rise only if ________Method is followed.

_____________ is the process of significantly changing a company's business model, management team or financial structure to address challenges and increase shareholder value.

A merger of two or more companies that compete in the same industry.

Merger where two companies are in the same or related industries but do not offer the same products, but related products and may share similar distribution channels, providing synergies for the merger is known as ____________ Merger.

A form of corporate restructuring in which the entity's business operations are segregated into one or more components is known as __________________.

When one company takes over the management of the target company with the permission of the board, it is known as ________________ takeover.

Any agreement between two or more parties to collaborate with each other, in order to achieve certain objectives while continuing to remain independent organizations is called _______________.

________________accounting is the process by which companies and organizations record the financial impact of agreements to rent or finance the rights to use specific assets.

A ______________ is defined as an entity that provides the right to use an asset for a period of time in exchange for consideration.

A ____________ is a lease that transfers substantially all the risks and rewards incidental to ownership of an asset. Title may or may not eventually be transferred.

____________ is the estimated remaining period, from the commencement of the lease term, without limitation by the lease term, over which the economic benefits embodied in the asset are expected to be consumed by the entity.

______________ is a term used in the field of accounting which measures the environmental and natural resources accounting, which tends to incorporate the natural and environmental assets of the firm and it’s resources.

_________ highlights both the contribution of business enterprises to economic wellbeing and the costs imposed in the form of pollution or resource degradation.

_______________ is concerned with the development of measurement system to monitor social performance.

__________ is the method were all assets and liabilities are recorded on a balance sheet according to the cost of replacing them rather than their historical costs.

___________ acts as an evidence of social commitment.