McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Business Administration (BBA) , Bachelor of Commerce (B Com) .
Chapters
| 1. |
How many IFRS are in force as of now? |
| A. | 65 |
| B. | 36 |
| C. | 37 |
| D. | 38 |
| Answer» A. 65 | |
| 2. |
Total no of interpretations applicable till date? |
| A. | 24 |
| B. | 26 |
| C. | 28 |
| D. | 30 |
| Answer» C. 28 | |
| 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 |
| Answer» B. april 1, 2011 | |
| 4. |
As per IAS 1, Presentation of financial statement, ______ no of items would constitute complete set of financial statements. |
| A. | atleast 5 |
| B. | atleast 6 |
| C. | 5 |
| D. | 6 |
| Answer» 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 |
| Answer» A. generally accepted accounting principles | |
| 6. |
Whether financial reviews by management, environment reports and value added financial statements are outside the scope of international financial reporting standards (IFRSs)? |
| A. | yes |
| B. | no |
| C. | not mentioned in ifrs |
| D. | still in consideration |
| Answer» A. yes | |
| 7. |
What is the term used to describe the time between the acquisition of assets for processing and their realization in cash or cash equivalents? |
| A. | processing cycle |
| B. | turnover |
| C. | operating cycle |
| D. | turnaround |
| Answer» C. operating cycle | |
| 8. |
Which sections of an annual report do IFRSs apply to? |
| A. | management report |
| B. | financial statements |
| C. | auditors report |
| D. | entire annual report |
| Answer» B. financial statements | |
| 9. |
How many formats are permitted for income and expense items under Ind AS 1? |
| A. | one |
| B. | two |
| C. | three |
| D. | four |
| Answer» B. two | |
| 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 |
| Answer» 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 |
| Answer» C. when required or permitted under an ifrs | |
| 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 |
| Answer» C. cost of goods sold | |
| 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 |
| Answer» B. chairman’s commentary on performance | |
| 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 |
| Answer» A. at least annually | |
| 15. |
Correcting the recognition measurement and disclosure of amounts in financial statements as if a prior period error had never occurred. This is: |
| A. | retrospective restatement |
| B. | retrospective application |
| C. | changes in accounting estimate |
| D. | delayed application |
| Answer» A. retrospective restatement | |
| 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 |
| Answer» A. at least at each financial year end | |
| 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 |
| Answer» 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 |
| Answer» B. professional fees | |
| 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 |
| Answer» B. residual value | |
| 20. |
Under Ind AS 16, which of the following is not allowable as a directly attributable cost of a machine? |
| A. | delivery |
| B. | site preparation |
| C. | estimated dismantling costs |
| D. | initial test batches |
| Answer» D. initial test batches | |
| 21. |
What is the amount an asset could achieve if sold between knowledgeable, willing parties in an arm’s length transaction? |
| A. | current value |
| B. | net present value |
| C. | written down value |
| D. | fair value |
| Answer» 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 |
| Answer» A. office buildings | |
| 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 |
| Answer» A. name of valuer | |
| 24. |
Under Ind AS 16, which two subsequent accounting treatments are allowed subsequently to initial 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 |
| Answer» B. cost model and revaluation 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 |
| Answer» B. profit and loss | |
| 26. |
Which of the following is not a component of cost of an asset? |
| A. | purchase price |
| B. | refundable sales tax |
| C. | import duties |
| D. | estimate of compulsory future dismantling costs |
| Answer» B. refundable sales tax | |
| 27. |
When an item of property, plant and equipment is revalued, what should be revalued? |
| A. | a selection of assets decided by management |
| B. | a selection of assets picked at random |
| C. | the whole class of assets to which it belongs |
| D. | the individual asset |
| Answer» C. the whole class of assets to which it belongs | |
| 28. |
Which of the following is not an asset that falls under the scope of Ind AS 16? |
| A. | assets held for sale in the normal course of business |
| B. | tangible assets |
| C. | assets expected to be used for more than one period |
| D. | assets held for the production or supply of goods or services |
| Answer» A. assets held for sale in the normal course of business | |
| 29. |
How should an asset be initially recognised in the financial statements? |
| A. | measure at market value |
| B. | measure at cost |
| C. | measure at net realisable value |
| D. | measure at fair value |
| Answer» B. measure at cost | |
| 30. |
Where is the amortisation of an intangible asset recognised? |
| A. | equity |
| B. | profit or loss |
| C. | statement of financial position |
| D. | statement of cash flows |
| Answer» B. profit or loss | |
| 31. |
Which of the following is not a requirement to capitalise development costs under Ind AS 38 Intangible Assets? |
| A. | the commercial feasibility for the asset may be uncertain |
| B. | it must be technically feasible |
| C. | the entity intends to sell the completed intangible asset |
| D. | the entity can demonstrate how the asset will generate future economic benefits |
| Answer» A. the commercial feasibility for the asset may be uncertain | |
| 32. |
An intangible asset with a finite useful life should be amortised over |
| A. | a period determined by management |
| B. | five years |
| C. | its expected useful life |
| D. | no foreseeable limit |
| Answer» C. its expected useful life | |
| 33. |
What are intangible assets? |
| A. | nonmonetary assets without physical substance |
| B. | monetary assets without physical substance |
| C. | monetary assets with physical substance |
| D. | nonmonetary assets with physical substance |
| Answer» A. nonmonetary assets without physical substance | |
| 34. |
Which of the following is an intangible asset under Ind AS 38? |
| A. | patent rights |
| B. | market share |
| C. | customer loyalty |
| D. | technical knowledge training |
| Answer» A. patent rights | |
| 35. |
Which of the following measurement models is not permitted for the subsequent measurement of intangible assets under Ind AS 38? |
| A. | revaluation model |
| B. | fair value model |
| C. | cost model |
| D. | capital assets pricing model |
| Answer» D. capital assets pricing model | |
| 36. |
What is the correct treatment for all eligible borrowing costs under Ind AS 23? |
| A. | expensed |
| B. | capitalised |
| C. | invested |
| D. | none of the above |
| Answer» B. capitalised | |
| 37. |
Which of the following is not a qualifying asset under Ind AS 23 Borrowing Costs? |
| A. | manufacturing plants |
| B. | made to order inventory |
| C. | mass produced inventory |
| D. | investment property |
| Answer» C. mass produced inventory | |
| 38. |
Which of the following items should be disclosed as per the requirements of Ind AS 2? |
| A. | carrying amount of inventories pledged as security for liabilities |
| B. | average lead time of procurement for major classes of inventories |
| C. | list of major customers to whom the inventories were sold during the reporting period |
| D. | average holding period of inventories of the entity as at the end of the reporting period |
| Answer» A. carrying amount of inventories pledged as security for liabilities | |
| 39. |
Which of the following items are excluded from the scope of Ind AS 2 Inventories? |
| A. | inventories that are stated at net realisable value |
| B. | assets held for sale in the ordinary course of business |
| C. | inventories whose fair value is more than the cost |
| D. | agricultural produce at the point of harvest |
| Answer» D. agricultural produce at the point of harvest | |
| 40. |
Under Ind AS 2, fixed production overheads should be allocated to items of inventory on the basis of ____ production capacity. |
| A. | actual |
| B. | abnormal |
| C. | normal |
| D. | estimated |
| Answer» C. normal | |
| 41. |
Which of the following cost models is not permitted under Ind AS 2? |
| A. | fifo |
| B. | lifo |
| C. | actual cost |
| D. | simple average |
| Answer» B. lifo | |
| 42. |
Which of the below mentioned formula are covered by Ind AS 2? (i) FIFO, (ii) LIFO, (iii) Weighted Average. |
| A. | i, ii |
| B. | i, iii |
| C. | ii, iii |
| D. | all |
| Answer» B. i, iii | |
| 43. |
Which of the following costs must be expensed under Ind AS 2? |
| A. | selling and distribution overheads incurred in the ordinary course of business |
| B. | variable production overheads that are allocated to each unit based on actual usage |
| C. | import duties on raw materials that are paid to the authorities |
| D. | costs of purchase that are paid to the suppliers of raw materials |
| Answer» A. selling and distribution overheads incurred in the ordinary course of business | |
| 44. |
How are unallocated overheads treated as per Ind AS 2? |
| A. | recognise as an expense in the period in which they are incurred |
| B. | recognise as an expense so long as there is a profit in the current period |
| C. | treated as deferred expenditure |
| D. | capitalised with the cost of inventories |
| Answer» A. recognise as an expense in the period in which they are incurred | |
| 45. |
After convergence of Indian accounting standards with IFRS, new standard issued for preparing the cash flow statement is: |
| A. | ind as 10 |
| B. | ind as 3 |
| C. | ind as 7 |
| D. | ind as 12 |
| Answer» C. ind as 7 | |
| 46. |
Under Ind AS 12 a temporary difference is defined as |
| A. | the difference between the tax base of an item and that items carrying amount in the balance sheet |
| B. | the difference between the carrying amount of an item and that items fair value less costs to sell |
| C. | the difference between the carrying amount of an item and that items revalued amount |
| D. | a difference which will reverse in the next accounting period |
| Answer» C. the difference between the carrying amount of an item and that items revalued amount | |
| 47. |
Activities that result in changes in the size and composition of the equity capital and borrowings of an entity are called |
| A. | financing activities |
| B. | operating activities |
| C. | investing activities |
| D. | none of these |
| Answer» A. financing activities | |
| 48. |
The principal revenue-producing activities of an entity are called |
| A. | investing activities |
| B. | operating activities |
| C. | financing activities |
| D. | none of these |
| Answer» B. operating activities | |
| 49. |
Cash payments to and on behalf of employees is an example of cash flows from |
| A. | operating activities |
| B. | financing activities |
| C. | investing activities |
| D. | none of these |
| Answer» A. operating activities | |
| 50. |
Which of the following is not a heading for cash flows under Ind AS 7? |
| A. | cash flows from normal activities |
| B. | cash flows from operating activities |
| C. | cash flows from investing activities |
| D. | cash flows from financing activities |
| Answer» A. cash flows from normal activities | |
Done Studing? Take A Test.
Great job completing your study session! Now it's time to put your knowledge to the test. Challenge yourself, see how much you've learned, and identify areas for improvement. Don’t worry, this is all part of the journey to mastery. Ready for the next step? Take a quiz to solidify what you've just studied.