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
| 201. |
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 | |
| 202. |
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 | |
| 203. |
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 | |
| 204. |
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 | |
| 205. |
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 | |
| 206. |
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 | |
| 207. |
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 | |
| 208. |
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 | |
| 209. |
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 | |
| 210. |
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 | |
| 211. |
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 | |
| 212. |
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 | |
| 213. |
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 | |
| 214. |
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 | |
| 215. |
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 | |
| 216. |
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 | |
| 217. |
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 | |
| 218. |
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 | |
| 219. |
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 | |
| 220. |
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 | |
| 221. |
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 | |
| 222. |
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 | |
| 223. |
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 | |
| 224. |
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 | |
| 225. |
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 | |
| 226. |
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 | |
| 227. |
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 | |
| 228. |
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 | |
| 229. |
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 | |
| 230. |
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 | |
| 231. |
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 | |
| 232. |
Activities that result in changes in the size and composition of the equity capital and borrowings of an entity are called: |
| A. | operating activities |
| B. | investing activities |
| C. | financing activities |
| D. | none of these |
| Answer» C. financing activities | |
| 233. |
Increase in share capital of a firm in the current year as compared to previous year should be recorded in the final cash flow statement under |
| A. | investing activities |
| B. | financing activities |
| C. | operating activities |
| D. | all of the above |
| Answer» B. financing activities | |
| 234. |
When presenting discontinued operations in the cash flow statement |
| A. | they are pooled with other current assets |
| B. | they are added to non-cash items |
| C. | they are ignored |
| D. | they are shown separately |
| Answer» D. they are shown separately | |
| 235. |
An entity shall explain how the transition from previous GAAP to IFRSs __________ its reported financial position, financial performance and cash flows. |
| A. | adjusted |
| B. | corroborated |
| C. | affected |
| D. | benefited |
| Answer» C. affected | |
| 236. |
How does an entity adopt IFRSs for the first time? |
| A. | by reporting on its financial position, financial performance and cash flows in accordance with ifrss |
| B. | by issuing its first financial statements in which the entity adopts ifrss, by an explicit and unreserved statement of compliance with ifrss |
| C. | by reporting on its financial position, financial performance and cash flows in accordance with national requirements, which do not contradict ifrss |
| D. | by issuing its first financial statements in accordance with national requirements, which contain explicit and unreserved statement of compliance with ifrss |
| Answer» B. by issuing its first financial statements in which the entity adopts ifrss, by an explicit and unreserved statement of compliance with ifrss | |
| 237. |
Which of the following is the starting point for an entity accounting in accordance with IFRSs? |
| A. | the date when the decision about adopting ifrs has been made |
| B. | the date of issuance of the first financial statement in accordance with ifrs |
| C. | the date of transition to ifrss |
| D. | the date when the explicit and unreserved statement of compliance with ifrss has been made |
| Answer» C. the date of transition to ifrss | |
| 238. |
Accounting in India is governed by the |
| A. | rbi |
| B. | company law board |
| C. | income tax department |
| D. | icai |
| Answer» D. icai | |
| 239. |
The convergence of the Indian Accounting Standards with IFRS began in |
| A. | april 2010 |
| B. | april 2012 |
| C. | april 2015 |
| D. | april 2000 |
| Answer» C. april 2015 | |
| 240. |
Ind AS will apply to |
| A. | both consolidated as well as standalone financials of the company |
| B. | only consolidated financials |
| C. | only standalone financials |
| D. | optional |
| Answer» A. both consolidated as well as standalone financials of the company | |
| 241. |
Total Number of Ind AS which are notified as of date? |
| A. | 40 |
| B. | 41 |
| C. | 42 |
| D. | 43 |
| Answer» C. 42 | |
| 242. |
Total Number of IFRSs which are notified as of date? |
| A. | 16 |
| B. | 17 |
| C. | 18 |
| D. | 19 |
| Answer» A. 16 | |
| 243. |
Total Number of IFRIC Interpretations which are notified as of date? |
| A. | 23 |
| B. | 24 |
| C. | 25 |
| D. | 26 |
| Answer» A. 23 | |
| 244. |
Total Number of SIC Interpretations which are notified as of date? |
| A. | 30 |
| B. | 31 |
| C. | 32 |
| D. | 33 |
| Answer» D. 33 | |
| 245. |
What items of inventories are outside the scope of Ind AS 2? |
| A. | work in progress arising under construction contracts |
| B. | raw materials including maintenance supplies |
| C. | share, debentures held as stock-in-trade |
| D. | machinery spares exclusively used with fixed assets |
| Answer» A. work in progress arising under construction contracts | |
| 246. |
A provision is |
| A. | a liability of uncertain timing or amount |
| B. | a possible obligation as a result of past events that is of uncertain timing or amount |
| C. | an adjustment to the carrying amount of assets |
| D. | none of these |
| Answer» A. a liability of uncertain timing or amount | |
| 247. |
When Redeemable Preference shares are due for redemption, the entry passed is |
| A. | debit redeemable preference share capital a/c; credit cash a/c |
| B. | debit redeemable preference share capital a/c; credit preference shareholders a/c |
| C. | debit preference shareholders a/c; credit cash a/c |
| D. | debit preference shareholders a/c; credit capital reduction a/c |
| Answer» B. debit redeemable preference share capital a/c; credit preference shareholders a/c | |
| 248. |
Which of the following can be utilized for the redemption of preference shares of a company out of profit: |
| A. | shares forfeited account |
| B. | development rebate reserve account |
| C. | capital redemption reserve account |
| D. | dividend equalization reserve |
| Answer» D. dividend equalization reserve | |
| 249. |
Which of the following cannot be utilized for the redemption of preference shares of a company |
| A. | securities premium on fresh issue of shares |
| B. | general reserve |
| C. | profit and loss account |
| D. | dividend equalization reserve |
| Answer» A. securities premium on fresh issue of shares | |
| 250. |
A company cannot issue redeemable preference shares for a period exceeding _________. |
| A. | 6 years |
| B. | 7 years |
| C. | 8 years |
| D. | 20 years |
| Answer» D. 20 years | |
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