Corporate Accounting Set 1

Bachelor of Business Administration (BBA),

Bachelor of Commerce (B Com)

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This set of Corporate Accounting Multiple Choice Questions & Answers (MCQs) focuses on Corporate Accounting Set 1

Q1 | How many IFRS are in force as of now?
  • 65
  • 36
  • 37
  • 38
Answer: 65
Q2 | Total no of interpretations applicable till date?
  • 24
  • 26
  • 28
  • 30
Answer: 28
Q3 | What is the transition date of IFRS in India?
  • april 1, 2010
  • april 1, 2011
  • april 1, 2012
  • april 1, 2008
Answer: april 1, 2011
Q4 | As per IAS 1, Presentation of financial statement, ______ no of items would constitutecomplete set of financial statements.
  • atleast 5
  • atleast 6
  • 5
  • 6
Answer: 6
Q5 | GAAP stands for
  • generally accepted accounting principles
  • globally accepted accounting practice
  • generally allowable accounting principles
  • generally allowable accounting practice
Answer: generally accepted accounting principles
Q6 | Whether financial reviews by management, environment reports and value added financialstatements are outside the scope of international financial reporting standards (IFRSs)?
  • yes
  • no
  • not mentioned in ifrs
  • still in consideration
Answer: yes
Q7 | What is the term used to describe the time between the acquisition of assets for processing andtheir realization in cash or cash equivalents?
  • processing cycle
  • turnover
  • operating cycle
  • turnaround
Answer: operating cycle
Q8 | Which sections of an annual report do IFRSs apply to?
  • management report
  • financial statements
  • auditors report
  • entire annual report
Answer: financial statements
Q9 | How many formats are permitted for income and expense items under Ind AS 1?
  • one
  • two
  • three
  • four
Answer: two
Q10 | Where should extraordinary items appear in an entity’s Statement of Comprehensive Income?
  • other comprehensive income
  • income statement
  • notes
  • nowhere
Answer: nowhere
Q11 | When is offsetting permitted under Ind AS 1?
  • always
  • never
  • when required or permitted under an ifrs
  • when approved by the board of directors
Answer: when required or permitted under an ifrs
Q12 | Which of the following is not a component of a Statement of Financial Position?
  • non-current assets
  • retained earnings
  • cost of goods sold
  • deferred tax
Answer: cost of goods sold
Q13 | Which of the following is not a requirement in the financial statements under Ind AS 1?
  • name of the entity
  • chairman’s commentary on performance
  • the accounting period
  • presentation currency
Answer: chairman’s commentary on performance
Q14 | Under Ind AS 1 how often should financial statements be prepared?
  • at least annually
  • no more than annually
  • as often as the company requires
  • monthly
Answer: at least annually
Q15 | Correcting the recognition measurement and disclosure of amounts in financial statements asif a prior period error had never occurred. This is:
  • retrospective restatement
  • retrospective application
  • changes in accounting estimate
  • delayed application
Answer: retrospective restatement
Q16 | Under Ind AS 16 how often the useful life of an asset should be reviewed?
  • at least at each financial year end
  • every six months
  • at management’s discretion
  • never
Answer: at least at each financial year end
Q17 | Under Ind AS 16 if an asset is idle
  • depreciation is paused
  • depreciation for the entire period does not apply
  • depreciation is ignored
  • depreciation continues
Answer: depreciation continues
Q18 | Which of these is an allowable cost of an asset under Ind AS 16?
  • general overheads
  • professional fees
  • administration expenses
  • general overheads
Answer: professional fees
Q19 | What is the net amount an entity expects to obtain for an asset at the end of its useful life?
  • depreciated value
  • residual value
  • present value
  • fair value
Answer: residual value
Q20 | Under Ind AS 16, which of the following is not allowable as a directly attributable cost of amachine?
  • delivery
  • site preparation
  • estimated dismantling costs
  • initial test batches
Answer: initial test batches
Q21 | What is the amount an asset could achieve if sold between knowledgeable, willing parties inan arm’s length transaction?
  • current value
  • net present value
  • written down value
  • fair value
Answer: fair value
Q22 | Which of the following is covered by Ind AS 16 Property, Plant and Equipment?
  • office buildings
  • assets held for sale
  • exploration assets
  • biological assets related to agricultural activity
Answer: office buildings
Q23 | Which of the following disclosures is not required when an asset is revalued?
  • name of valuer
  • revaluation surplus
  • effective date of revaluation
  • whether valuer was independent
Answer: name of valuer
Q24 | Under Ind AS 16, which two subsequent accounting treatments are allowed subsequently toinitial recognition?
  • cost model and present value model
  • cost model and revaluation model
  • fair value model and revaluation model
  • fair value model and cost model
Answer: cost model and revaluation model
Q25 | When an asset is sold or disposed of, where is the gain or loss recognised?
  • asset disposal account
  • profit and loss
  • revaluation reserve
  • depreciation
Answer: profit and loss
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