4. ………………..is the process of determining the monetary amounts at which the elements
of financial statements are recognized and carried in the financial statements.
Correct : C. Measurement
5. …………….is the residual interest in the asset of an entity after deducting all liabilities
Correct : D. Equity
6. ASB was set up in India on………………
Correct : A. 21 April 1977
7. Indian Accounting Standard 3 (AS3) deals with….
Correct : C. Cash flow Statement
8. What is the expansion of IASC?
Correct : B. International Accounting Standard Committee
9. How many members are there in IASB?
Correct : D. 14
10. Accounting profession of India is governed by………………….
Correct : A. ICAI
11. Property, Plant and Equipment are defined as,
Correct : 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,
Correct : 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?
Correct : 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?
Correct : C. Right to extract fuel from Government owned field
15. An intangible asset (other than goodwill) is,
Correct : C. An identifiable non-monetary asset without physical substance
16. An intangible asset is identified when,
Correct : C. Either (a) or (b)
17. The cost of intangible asset at initial recognition is measured at its fair value when,
Correct : D. Both (b) and (c)
18. The useful life of an intangible asset may be,
Correct : C. Either (a) or (b)
19. Impairment loss is recognised when,
Correct : C. Carrying amount of an asset exceeds its recoverable amount
20. An entity assesses inventories for impairment,
Correct : B. At each reporting date
21. Inventories must be measured at
Correct : B. Lower of cost and estimated selling price less cost to complete and sell
22. Cost of inventory is a sum of
Correct : C. Cost of purchase, cost of conversion and other cost to bring the material to the present location
23. Consumable stores are
Correct : A. Inventories
24. Cost of inventory does not include
Correct : C. Cost of abnormal wastage
25. A property developer must classify properties that it hold for sale in the ordinary course
of business as
Correct : A. Inventories
26. Borrowing cost are,
Correct : A. Interest and other cost that an entity incurs in connection with borrowing of funds
27. Borrowing cost do not include,
Correct : 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?
Correct : A. 275000
29. An entity shall cease capitalizing borrowing cost when
Correct : C. The asset is materially ready for its intended use
30. Capitalization of borrowing cost should not cease when
Correct : 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?
Correct : A. 120000
32. Ind AS 2 deals with…
Correct : A. Inventories
33. An item of property , plant and equipment that qualifies for recognition as an asset shall
be measured at
Correct : A. Cost
34. Inventory allocated to the construction of fixed asset should be……
Correct : A. Capitalized
35. Ind AS 38 deals with…….
Correct : C. Intangible assets
36. …………. are the amount of income tax payable in future period for taxable temporary
differences.
Correct : B. Deferred tax liability
37. ……………….is the price at which goods or services would be sold separately to a
customer
Correct : A. Stand - alone price
38. ……………..are employee benefits that are payable after the completion of employment
Correct : B. Post employee benefits
39. As per IFRS15, an agreement between two or more parties that creates enforceable right
and obligation is called….
Correct : B. Contract
40. Which of the following is not an exception for application of IFRS 15
Correct : D. All the above
41. A……………………..is the liability of uncertain timing and uncertain amount.
Correct : A. Provision
42. When a lease transfers substantially all the risks and rewards of ownership to lessee, this
is called…..
Correct : B. Finance lease
43. Operating lease is
Correct : A. Short term agreement
44. Finance leases are accounted for in a similar manner to:
Correct : B. Credit transaction
45. Which of the following securities do not influence diluted EPS?
Correct : B. Ordinary preference share
46. Which of the following is not an example of a potential ordinary share?
Correct : A. Standard preference share
47. Theoretical ex-rights price (‘TERP’) is calculated when there is a:
Correct : 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:
Correct : 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):
Correct : B. At fair value less costs to sell.
50. Two entities are not necessarily related parties if:
Correct : C. The entities share joint control over a third entity
51. IAS 24 and Ind AS 24 are deal with……
Correct : 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’.
Correct : B. Statement is false
53. Specific principles, bases, conventions, rules and practices applied in presenting financial
statements, are called,
Correct : B. Accounting policies
54. Adjustment of the carrying amount of an asset or liability or the consumption of an asset
is defined as,
Correct : 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,
Correct : B. Retrospective application
56. In selecting an accounting policy, we should review ________,
Correct : D. All of the above
57. IAS 8 deals with…..
Correct : D. All the above
58. Which of the following is not a minimum item on the face of the statement of
comprehensive income?
Correct : C. Deferred tax
59. Under Ind AS 1, which of the following must be disclosed on the statement of financial
position?
Correct : D. All of the above
60. Which of the following is not a requirement for current liabilities?
Correct : D. Entity holds an unconditional right to defer settlement for over 12 months after
61. Which of the following are cash and cash equivalents?
Correct : D. All of the above
62. Cash receipts from customers for the sale of goods are cash flows from:
Correct : A. Operating activities
63. Cash payments to acquire the entity’s own shares (ie, treasury shares) are:
Correct : 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:
Correct : 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:
Correct : 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:
Correct : 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 ……..
Correct : A. Current period and future period
68. Liquidation of a major customer after the end of the period end is….
Correct : A. Adjusting events
69. Principal revenue producing activity of an entity is called…
Correct : A. Operating activity
70. Cash equivalents do not include
Correct : B. Goodwill
71. Ind AS 1 deals with……………
Correct : A. Presentation of financial statements
72. Indian accounting standards converged with IFRS is known as……….
Correct : D. Ind Ass
73. IASC head quartered at….
Correct : 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.
Correct : A. Assets
75. GAAP stands for
Correct : D. Generally accepted accounting principles
76. Original cost at which asset or liability is acquired is known as ..
Correct : C. Historical cost
77. The process of converting foreign subsidiary financial statement into the home currency
is known as …
Correct : B. Translation
78. What is conceptual framework for accounting?
Correct : 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.
Correct : A. Value in use
80. Useful life of an intangible asset with finite useful life is reviewed at …
Correct : 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
Correct : C. Impaired
82. Ind AS 33 deals with
Correct : 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
Correct : D. Current tax
84. Which of the following is not coming under the scope of Ind AS 16
Correct : 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
Correct : C. Qualifying asset
86. IAS 17 does not applies to
Correct : D. All of the above
87. Consideration which varies upon certain future events which may or may not occur is
called….
Correct : A. Variable consideration
88. Income tax consists of
Correct : D. All of the above
89. Operating lease is :
Correct : A. Short term agreement
90. Ind AS 41 deals with
Correct : B. Accounting for agriculture
91. ….. is a financial reporting period shorter than a full financial year
Correct : C. Interim period
92. Land related to agricultural activities is coming under the scope of Ind AS….
Correct : A. 16
93. A…………. is an operating segment or results from the aggregation of two or more
operating segments that meets quantitative thresholds.
Correct : C. Reportable segment
94. Theoretical ex-right price is calculated when there is :
Correct : B. Right issue
95. Activities that result in changes in the size and composition of equity capital and
borrowing of an entity are called
Correct : D. Financing activity
96. A statement showing information on increase or decrease in net asset or wealth of an
entity is called…
Correct : D. Statement of Changes in equity
97. ” Deferred tax asset is not a component of statement of financial position”
Correct : B. Statement is false
98. Omission or misstatement in entity’s financial statement for one or more prior period is
called
Correct : B. Prior period errors
99. Amount attributed to the asset or liability for tax purpose is called