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) .
| 51. |
IAS 24 and Ind AS 24 are deal with…… |
| A. | Reporting |
| B. | Joint control |
| C. | Subsidiary |
| D. | Related party |
| Answer» A. Reporting | |
| 52. |
In a land lease, if title does not pass at the end of a lease to the lessee, it is normally treated as ‘Finance lease’. |
| A. | Statement is true |
| B. | Statement is false |
| C. | Statement is not relevant |
| D. | none |
| Answer» B. Statement is false | |
| 53. |
Specific principles, bases, conventions, rules and practices applied in presenting financial statements, are called, |
| A. | Accounting estimates |
| B. | Accounting policies |
| C. | Prospective application |
| D. | Accounting estimates |
| Answer» B. Accounting policies | |
| 54. |
Adjustment of the carrying amount of an asset or liability or the consumption of an asset is defined as, |
| A. | A change in the accounting estimate |
| B. | Accounting policies |
| C. | Misstatements |
| D. | Error |
| Answer» A. A change in the accounting estimate | |
| 55. |
Applying a new policy to transaction as if that policy had always been applied. This is called, |
| A. | Retrospective restatement |
| B. | Retrospective application |
| C. | Change in accounting estimates |
| D. | None of the above |
| Answer» B. Retrospective application | |
| 56. |
In selecting an accounting policy, we should review ________, |
| A. | The standard only |
| B. | The interpretation only |
| C. | Framework only |
| D. | All of the above |
| Answer» D. All of the above | |
| 57. |
IAS 8 deals with….. |
| A. | Selection and application of accounting policies |
| B. | Changes in accounting estimates |
| C. | Correction of prior period errors |
| D. | All the above |
| Answer» D. All the above | |
| 58. |
Which of the following is not a minimum item on the face of the statement of comprehensive income? |
| A. | Revenue |
| B. | Finance cost |
| C. | Deferred tax |
| D. | Profit or Loss |
| Answer» C. Deferred tax | |
| 59. |
Under Ind AS 1, which of the following must be disclosed on the statement of financial position? |
| A. | Property, Plant and Equipment |
| B. | Biological assets |
| C. | Provisions |
| D. | All of the above |
| Answer» D. All of the above | |
| 60. |
Which of the following is not a requirement for current liabilities? |
| A. | Expected to be settled in entity’s operating cycle |
| B. | Held primarily for trading |
| C. | Expected to be settled within 12 months from the reporting period |
| D. | Entity holds an unconditional right to defer settlement for over 12 months after |
| Answer» D. Entity holds an unconditional right to defer settlement for over 12 months after | |
| 61. |
Which of the following are cash and cash equivalents? |
| A. | Cash in hand |
| B. | Foreign currency in hand |
| C. | Bank balance |
| D. | All of the above |
| Answer» D. All of the above | |
| 62. |
Cash receipts from customers for the sale of goods are cash flows from: |
| A. | Operating activities |
| B. | Investing activities |
| C. | Operating or financing activities |
| D. | Financing activities |
| Answer» A. Operating activities | |
| 63. |
Cash payments to acquire the entity’s own shares (ie, treasury shares) are: |
| A. | Cash outflows from operating activities |
| B. | Cash outflows from investing activities |
| C. | Cash outflows from financing activities |
| D. | None of the above |
| Answer» B. Cash outflows from investing activities | |
| 64. |
When after the end of the reporting period an event occurs that is indicative of conditions that arose after the end of the reporting period: |
| A. | The entity discloses the nature and effect of the event in the financial statements. |
| B. | The entity adjusts the related amounts recognised in the financial statements. |
| C. | Both of the above statements are true. |
| D. | None of the above |
| Answer» A. The entity discloses the nature and effect of the event in the financial statements. | |
| 65. |
Events after the end of the reporting period are defined as: |
| A. | Events, favourable and unfavourable, that, occur between the end of the reporting period and the date of the entity’s next annual financial statements. |
| B. | Events, favourable and unfavourable, that, occur between the end of the reporting period and the date of the entity’s next interim (or annual) financial statements. |
| C. | Events, favourable and unfavourable, that, occur between the end of the reporting period and the date when the financial statements are authorised for issue. |
| D. | None of the above |
| Answer» C. Events, favourable and unfavourable, that, occur between the end of the reporting period and the date when the financial statements are authorised for issue. | |
| 66. |
Adjusting events are those that: |
| A. | Provide evidence of conditions that existed at the end of the reporting period. |
| B. | Are indicative of conditions that arose after the end of the reporting period. |
| C. | Are favourable or unfavourable, and indicative of conditions that arose after the end of the reporting peri |
| Answer» A. Provide evidence of conditions that existed at the end of the reporting period. | |
| 67. |
A change of estimate should be made to the income statement of …….. |
| A. | Current period and future period |
| B. | Prior period |
| C. | Current year |
| D. | None of the above |
| Answer» A. Current period and future period | |
| 68. |
Liquidation of a major customer after the end of the period end is…. |
| A. | Adjusting events |
| B. | Non adjusting event |
| C. | Error |
| D. | Changes in estimate |
| Answer» A. Adjusting events | |
| 69. |
Principal revenue producing activity of an entity is called… |
| A. | Operating activity |
| B. | Financing Activity |
| C. | Investment activity |
| D. | None of the above |
| Answer» A. Operating activity | |
| 70. |
Cash equivalents do not include |
| A. | Demand deposit |
| B. | Goodwill |
| C. | Money at call |
| D. | Bank overdraft |
| Answer» B. Goodwill | |
| 71. |
Ind AS 1 deals with…………… |
| A. | Presentation of financial statements |
| B. | Cash flow statement |
| C. | Intangible assets |
| D. | Accounting policies, changes in accounting estimates and errors |
| Answer» A. Presentation of financial statements | |
| 72. |
Indian accounting standards converged with IFRS is known as………. |
| A. | IASs |
| B. | ASs |
| C. | IFRSIC |
| D. | Ind Ass |
| Answer» D. Ind Ass | |
| 73. |
IASC head quartered at…. |
| A. | Delhi |
| B. | London |
| C. | New York |
| D. | Tokyo |
| Answer» B. London | |
| 74. |
…..are resources controlled by the entity as a result of past events and from which future economic benefits are expected to flow to the entity. |
| A. | Assets |
| B. | Income |
| C. | Liability |
| D. | Current assets |
| Answer» A. Assets | |
| 75. |
GAAP stands for |
| A. | Generally accepted accounting practices |
| B. | Generally accepted accounting policy |
| C. | Globally accepted accounting practices |
| D. | Generally accepted accounting principles |
| Answer» D. Generally accepted accounting principles | |
| 76. |
Original cost at which asset or liability is acquired is known as .. |
| A. | Carrying amount |
| B. | Replacement cost |
| C. | Historical cost |
| D. | Purchase price |
| Answer» C. Historical cost | |
| 77. |
The process of converting foreign subsidiary financial statement into the home currency is known as … |
| A. | Transmission |
| B. | Translation |
| C. | Consolidation |
| D. | Reconstruction |
| Answer» B. Translation | |
| 78. |
What is conceptual framework for accounting? |
| A. | A set of rules and regulations |
| B. | A set of financial statements |
| C. | Components of financial statements |
| D. | A set of principles underpinning financial reporting |
| Answer» D. A set of principles underpinning financial reporting | |
| 79. |
Present value of expected future cash flows generated by an asset, plus its expected disposal value is called. |
| A. | Value in use |
| B. | Recoverable amount |
| C. | Carrying amount |
| D. | NRV |
| Answer» A. Value in use | |
| 80. |
Useful life of an intangible asset with finite useful life is reviewed at … |
| A. | Every year |
| B. | At the end of the useful life |
| C. | In case any changes in accounting estimated |
| D. | None of the above. |
| Answer» A. Every year | |
| 81. |
When the recoverable amount of an asset is less than its carrying value in the statement of financial position, the asset is said to be |
| A. | Obsolete |
| B. | Value less |
| C. | Impaired |
| D. | Fully depreciated |
| Answer» C. Impaired | |
| 82. |
Ind AS 33 deals with |
| A. | Related party disclosure |
| B. | PER |
| C. | Accounting for basic and diluted EPS |
| D. | None of the above |
| Answer» C. Accounting for basic and diluted EPS | |
| 83. |
……….is the amount of income taxes payable on the taxable profit for a period, in accordance with rules established by the tax authorities |
| A. | Tax expense |
| B. | Tax base |
| C. | Deferred tax |
| D. | Current tax |
| Answer» D. Current tax | |
| 84. |
Which of the following is not coming under the scope of Ind AS 16 |
| A. | Asset classified as held for sale |
| B. | Exploration assets |
| C. | Biological asset related to agricultural activity |
| D. | All the above |
| Answer» D. All the above | |
| 85. |
As per Ind AS 23, assets that require substantial time to bring to their intended use or to salable condition are known as |
| A. | Tangible asset |
| B. | Intangible asset |
| C. | Qualifying asset |
| D. | None of the above |
| Answer» C. Qualifying asset | |
| 86. |
IAS 17 does not applies to |
| A. | Biological asset held by lessee under finance leases |
| B. | Biological asset provided by lessor under operating leases |
| C. | Investment property provided by lessor under operating leases |
| D. | All of the above |
| Answer» D. All of the above | |
| 87. |
Consideration which varies upon certain future events which may or may not occur is called…. |
| A. | Variable consideration |
| B. | Future consideration |
| C. | Agreed price |
| D. | None of these |
| Answer» A. Variable consideration | |
| 88. |
Income tax consists of |
| A. | Domestic taxes that are based on taxable profit |
| B. | Foreign taxes that are based on taxable profit |
| C. | Tax that are payable by a subsidiary on distribution to the reporting entity |
| D. | All of the above |
| Answer» D. All of the above | |
| 89. |
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 | |
| 90. |
Ind AS 41 deals with |
| A. | Biological assets |
| B. | Accounting for agriculture |
| C. | Interim reporting |
| D. | None of these |
| Answer» B. Accounting for agriculture | |
| 91. |
….. is a financial reporting period shorter than a full financial year |
| A. | Short period |
| B. | A quarter |
| C. | Interim period |
| D. | None of these |
| Answer» C. Interim period | |
| 92. |
Land related to agricultural activities is coming under the scope of Ind AS…. |
| A. | 16 |
| B. | 36 |
| C. | 115 |
| D. | 2 |
| Answer» A. 16 | |
| 93. |
A…………. is an operating segment or results from the aggregation of two or more operating segments that meets quantitative thresholds. |
| A. | Joint Venture |
| B. | Associates |
| C. | Reportable segment |
| D. | None of the above |
| Answer» C. Reportable segment | |
| 94. |
Theoretical ex-right price is calculated when there is : |
| A. | Bonus issue |
| B. | Right issue |
| C. | Stock split |
| D. | All of these |
| Answer» B. Right issue | |
| 95. |
Activities that result in changes in the size and composition of equity capital and borrowing of an entity are called |
| A. | Operating activity |
| B. | Investment activity |
| C. | Income producing activity |
| D. | Financing activity |
| Answer» D. Financing activity | |
| 96. |
A statement showing information on increase or decrease in net asset or wealth of an entity is called… |
| A. | Statement of financial position |
| B. | Statement of comprehensive income |
| C. | Cash flow statement |
| D. | Statement of Changes in equity |
| Answer» D. Statement of Changes in equity | |
| 97. |
” Deferred tax asset is not a component of statement of financial position” |
| A. | Statement is true |
| B. | Statement is false |
| C. | Statement is not relevant as per IAS1 |
| D. | This item is not considered for reporting |
| Answer» B. Statement is false | |
| 98. |
Omission or misstatement in entity’s financial statement for one or more prior period is called |
| A. | Change in accounting estimate |
| B. | Prior period errors |
| C. | Change in accounting policy |
| D. | None of these |
| Answer» B. Prior period errors | |
| 99. |
Amount attributed to the asset or liability for tax purpose is called |
| A. | Carrying amount |
| B. | NRV |
| C. | Depreciation |
| D. | Tax base |
| Answer» D. Tax base | |
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