McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Commerce in Finance (B.Com Finance) .
| 1. |
What do you mean by ASB? |
| A. | Accounting Security Board |
| B. | Accounting Standard Board |
| C. | Accounting Standardization Board |
| D. | None of these |
| Answer» B. Accounting Standard Board | |
| 2. |
IASB was established in the year…. |
| A. | 1999 |
| B. | 1977 |
| C. | 1972 |
| D. | 2001 |
| Answer» D. 2001 | |
| 3. |
FASB is based in……………. |
| A. | London |
| B. | Chennai |
| C. | New York |
| D. | Norwalk |
| Answer» D. Norwalk | |
| 4. |
………………..is the process of determining the monetary amounts at which the elements of financial statements are recognized and carried in the financial statements. |
| A. | Recognition |
| B. | Addition |
| C. | Measurement |
| D. | Carrying |
| Answer» C. Measurement | |
| 5. |
…………….is the residual interest in the asset of an entity after deducting all liabilities |
| A. | Capital |
| B. | Net Asset |
| C. | Depreciation |
| D. | Equity |
| Answer» D. Equity | |
| 6. |
ASB was set up in India on……………… |
| A. | 21 April 1977 |
| B. | 1 April 1977 |
| C. | 1 January 1976 |
| D. | 31 March 1978 |
| Answer» A. 21 April 1977 | |
| 7. |
Indian Accounting Standard 3 (AS3) deals with…. |
| A. | Amalgamation |
| B. | Lease |
| C. | Cash flow Statement |
| D. | Depreciation Accounting |
| Answer» C. Cash flow Statement | |
| 8. |
What is the expansion of IASC? |
| A. | Indian Accounting Standard Committee |
| B. | International Accounting Standard Committee |
| C. | International Accounting Standard Control |
| D. | None of these |
| Answer» B. International Accounting Standard Committee | |
| 9. |
How many members are there in IASB? |
| A. | 10 |
| B. | 12 |
| C. | 20 |
| D. | 14 |
| Answer» D. 14 | |
| 10. |
Accounting profession of India is governed by…………………. |
| A. | ICAI |
| B. | Ministry of Corporate Affairs |
| C. | Govt. Of India |
| D. | ASB |
| Answer» A. ICAI | |
| 11. |
Property, Plant and Equipment are defined as, |
| A. | Tangible assets held for sale in the ordinary course of business |
| B. | Tangible assets held to earn rental or for capital appreciation or both |
| C. | Tangible assets used in the process of production or supply of goods or services or for rental to others |
| D. | None of the above |
| Answer» C. Tangible assets used in the process of production or supply of goods or services or for rental to others | |
| 12. |
An entity must measure its Property, Plant and Equipment after initial recognition at, |
| A. | Cost |
| B. | Cost less accumulated depreciation and impairment losses if any |
| C. | Cost less accumulated depreciation and impairment losses if any including cost of day to day servicing |
| D. | None of the above |
| Answer» B. Cost less accumulated depreciation and impairment losses if any | |
| 13. |
Which method depreciation is most appropriate for the entity to compute depreciation for the significant parts of the aircraft? |
| A. | Straight line method for all parts |
| B. | Unit production method based on air miles flown for the jet engines and SLM method for all other parts. |
| C. | Diminishing balance method for all parts |
| D. | None of the above |
| Answer» B. Unit production method based on air miles flown for the jet engines and SLM method for all other parts. | |
| 14. |
Which of the following asset is not coming under the scope of Ind AS 16? |
| A. | Factory building |
| B. | Sales Van |
| C. | Right to extract fuel from Government owned field |
| D. | All of the above |
| Answer» C. Right to extract fuel from Government owned field | |
| 15. |
An intangible asset (other than goodwill) is, |
| A. | An identifiable asset without physical substance |
| B. | A non-monetary asset without physical substance |
| C. | An identifiable non-monetary asset without physical substance |
| D. | All of the above |
| Answer» C. An identifiable non-monetary asset without physical substance | |
| 16. |
An intangible asset is identified when, |
| A. | It is separable |
| B. | It arises from contractual or other legal rights, regardless whether those rights are transferable or separable from the entity |
| C. | Either (a) or (b) |
| D. | None of these |
| Answer» C. Either (a) or (b) | |
| 17. |
The cost of intangible asset at initial recognition is measured at its fair value when, |
| A. | It is internally generated |
| B. | It is acquired as a part of business combination |
| C. | It is acquired by way of a Government grant |
| D. | Both (b) and (c) |
| Answer» D. Both (b) and (c) | |
| 18. |
The useful life of an intangible asset may be, |
| A. | Finite |
| B. | Infinite |
| C. | Either (a) or (b) |
| D. | None of these |
| Answer» C. Either (a) or (b) | |
| 19. |
Impairment loss is recognised when, |
| A. | Carrying amount of an asset is less than its recoverable amount |
| B. | Carrying amount of an asset is less than its original acquisition cost |
| C. | Carrying amount of an asset exceeds its recoverable amount |
| D. | Fair value of an asset is less than the undiscounted expected future cash inflows |
| Answer» C. Carrying amount of an asset exceeds its recoverable amount | |
| 20. |
An entity assesses inventories for impairment, |
| A. | Only when there are external indicators that, an impairment has occurred |
| B. | At each reporting date |
| C. | Only when there are internal indicators that an impairment has occurred |
| D. | None of these |
| Answer» B. At each reporting date | |
| 21. |
Inventories must be measured at |
| A. | Cost |
| B. | Lower of cost and estimated selling price less cost to complete and sell |
| C. | Lower of cost and fair value less cost to complete and sell |
| D. | None of these |
| Answer» B. Lower of cost and estimated selling price less cost to complete and sell | |
| 22. |
Cost of inventory is a sum of |
| A. | Cost of purchase and cost of conversion |
| B. | Direct cost, indirect cost and other cost |
| C. | Cost of purchase, cost of conversion and other cost to bring the material to the present location |
| D. | None of these |
| Answer» C. Cost of purchase, cost of conversion and other cost to bring the material to the present location | |
| 23. |
Consumable stores are |
| A. | Inventories |
| B. | Property, Plant and Equipment |
| C. | Investment Property |
| D. | Intangible Asset |
| Answer» A. Inventories | |
| 24. |
Cost of inventory does not include |
| A. | Salary of factory staff |
| B. | Storage cost necessary in the production process |
| C. | Cost of abnormal wastage |
| D. | None refundable taxes |
| Answer» C. Cost of abnormal wastage | |
| 25. |
A property developer must classify properties that it hold for sale in the ordinary course of business as |
| A. | Inventories |
| B. | Property, Plant and Equipment |
| C. | Financial Assets |
| D. | Investment property |
| Answer» A. Inventories | |
| 26. |
Borrowing cost are, |
| A. | Interest and other cost that an entity incurs in connection with borrowing of funds |
| B. | Dividend payments |
| C. | Fine on delayed payments |
| D. | None of the above |
| Answer» A. Interest and other cost that an entity incurs in connection with borrowing of funds | |
| 27. |
Borrowing cost do not include, |
| A. | Interest on debentures |
| B. | Incremental administrative fees for raising loans |
| C. | Dividend declared to equity shareholders |
| D. | All of the above |
| Answer» C. Dividend declared to equity shareholders | |
| 28. |
Total borrowings used for construction of an office building are Rs.30, 00000. Entity issued 8% debentures worth 10,00000 for this purpose and balance amount was utilized from its common pool including 10% bank loan of Rs.1000000 and 9.5% bank loan of Rs.1000000. What is the amount of borrowing cost to be capitalized? |
| A. | 275000 |
| B. | 300000 |
| C. | 250000 |
| D. | 265000 |
| Answer» A. 275000 | |
| 29. |
An entity shall cease capitalizing borrowing cost when |
| A. | Expenditure on the asset is being incurred |
| B. | Borrowing cost are being incurred |
| C. | The asset is materially ready for its intended use |
| D. | All of the above |
| Answer» C. The asset is materially ready for its intended use | |
| 30. |
Capitalization of borrowing cost should not cease when |
| A. | There is a delay and that delay is inherent in the asset acquisition process |
| B. | There is a delay in payment of interest on loan |
| C. | There is a permanent interruption |
| D. | None of the above |
| Answer» A. There is a delay and that delay is inherent in the asset acquisition process | |
| 31. |
Carrying amount of an asset as on 1st April 2015 is Rs. 1500000 and depreciation for the year 2015 – 2016 is 15000. Fair value of the asset less cost of disposal as on 31 March 2016 is Rs. 120000. Which of the following is the carrying amount at 1st April 2106? |
| A. | 120000 |
| B. | 135000 |
| C. | 150000 |
| D. | 165000 |
| Answer» A. 120000 | |
| 32. |
Ind AS 2 deals with… |
| A. | Inventories |
| B. | Depreciation |
| C. | Employee benefits |
| D. | Financial reporting |
| Answer» A. Inventories | |
| 33. |
An item of property , plant and equipment that qualifies for recognition as an asset shall be measured at |
| A. | Cost |
| B. | Market price |
| C. | Replacement value |
| D. | Opportunity cost |
| Answer» A. Cost | |
| 34. |
Inventory allocated to the construction of fixed asset should be…… |
| A. | Capitalized |
| B. | Expensed |
| C. | Reduced from value of inventory |
| D. | None of the above |
| Answer» A. Capitalized | |
| 35. |
Ind AS 38 deals with……. |
| A. | Tangible assets |
| B. | Impairment |
| C. | Intangible assets |
| D. | Borrowing cost. |
| Answer» C. Intangible assets | |
| 36. |
…………. are the amount of income tax payable in future period for taxable temporary differences. |
| A. | Deferred tax asset |
| B. | Deferred tax liability |
| C. | Current tax |
| D. | Tax base |
| Answer» B. Deferred tax liability | |
| 37. |
……………….is the price at which goods or services would be sold separately to a customer |
| A. | Stand - alone price |
| B. | Contract price |
| C. | Individual price |
| D. | Sales price |
| Answer» A. Stand - alone price | |
| 38. |
……………..are employee benefits that are payable after the completion of employment |
| A. | Retirement benefits |
| B. | Post employee benefits |
| C. | Share based payments |
| D. | None of the above |
| Answer» B. Post employee benefits | |
| 39. |
As per IFRS15, an agreement between two or more parties that creates enforceable right and obligation is called…. |
| A. | Agreement |
| B. | Contract |
| C. | Performance obligation |
| D. | Liability |
| Answer» B. Contract | |
| 40. |
Which of the following is not an exception for application of IFRS 15 |
| A. | Lease contract |
| B. | Insurance contract |
| C. | None monetary exchanges |
| D. | All the above |
| Answer» D. All the above | |
| 41. |
A……………………..is the liability of uncertain timing and uncertain amount. |
| A. | Provision |
| B. | Reserve |
| C. | Current liability |
| D. | None of the above |
| Answer» A. Provision | |
| 42. |
When a lease transfers substantially all the risks and rewards of ownership to lessee, this is called….. |
| A. | Operating lease |
| B. | Finance lease |
| C. | Hire purchase |
| D. | None of the above |
| Answer» B. Finance lease | |
| 43. |
Operating lease is |
| A. | Short term agreement |
| B. | Long term agreement |
| C. | Medium term agreement |
| D. | Any of the above |
| Answer» A. Short term agreement | |
| 44. |
Finance leases are accounted for in a similar manner to: |
| A. | Cash transaction |
| B. | Credit transaction |
| C. | Lease back transaction |
| D. | Long forgiveness |
| Answer» B. Credit transaction | |
| 45. |
Which of the following securities do not influence diluted EPS? |
| A. | Equity shares not entitled to dividend, but which may in the future |
| B. | Ordinary preference share |
| C. | Convertible loan stock |
| D. | Share option |
| Answer» B. Ordinary preference share | |
| 46. |
Which of the following is not an example of a potential ordinary share? |
| A. | Standard preference share |
| B. | Convertible preference share |
| C. | Stock warrant |
| D. | Convertible debt |
| Answer» A. Standard preference share | |
| 47. |
Theoretical ex-rights price (‘TERP’) is calculated when there is a: |
| A. | Bonus issue |
| B. | Right issue |
| C. | Stock split |
| D. | All of these |
| Answer» B. Right issue | |
| 48. |
A biological asset used in agricultural activity whose fair value is readily determinable without undue cost or effort is accounted for using: |
| A. | The fair value model. |
| B. | The cost model or the fair value model (an accounting policy choice). |
| C. | The cost model. |
| D. | Any of the above |
| Answer» A. The fair value model. | |
| 49. |
At the point of harvest an entity measures fruits (agricultural produce) that it picks from its orchards (biological assets): |
| A. | At fair value. |
| B. | At fair value less costs to sell. |
| C. | At cost. |
| D. | At the lower of cost and estimated selling price less costs to complete and sell. |
| Answer» B. At fair value less costs to sell. | |
| 50. |
Two entities are not necessarily related parties if: |
| A. | One entity has significant influence over the other. |
| B. | One entity has control over the other. |
| C. | The entities share joint control over a third entity |
| D. | One entity has joint control over the other. |
| Answer» C. The entities share joint control over a third entity | |
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