Accounting Standards Set 1

Bachelor of Business Administration (BBA),

Bachelor of Commerce (B Com)

Practice Mode Previous Next
On This Page

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

Q1 | Financial accounting is concerned with –
  • Recording of business expenses and revenue
  • Recording of costs of products and services
  • Recording of day to day business transactions
  • None of the above
Answer: Recording of day to day business transactions
Q2 | Accounting principles are generally based upon:
  • Practicability
  • Subjectivity
  • Convenience in recording
  • None of the above
Answer: Practicability
Q3 | The system of recording based on dual aspect concept is called:
  • Double account system
  • Double entry system
  • Single entry system
  • All the above
Answer: Double entry system
Q4 | Fixed assets and current assets are categorized as per concept of:
  • Separate entity
  • Going concern
  • Consistency
  • Time period
Answer: Going concern
Q5 | Accounting standards and Standards on Auditing establish standards which have to be complied with to ensure that financial statements are prepared in accordance with ______.
  • Generally acceptable Audit Procedure
  • Accounting Principles
  • Ind AS
  • Accounting Standards
Answer: Generally acceptable Audit Procedure
Q6 | Change in accounting estimate is __________
  • Prior Period Item
  • Change in accounting policy
  • Extra-ordinary item
  • Ordinary item
Answer: Change in accounting policy
Q7 | Indian accounting standards are the International financial reporting standards converged standards issued by the central government of India under the supervision and control of accounting standards board of ICAI and in consultation with __________.
  • Ministry of corporate affairs
  • NFRA
  • Accounting Standards Board
  • All of the above
Answer: NFRA
Q8 | Preparation of consolidated Balance Sheet of Holding Co. and its subsidiarycompany as per
  • As 11
  • AS – 22
  • AS 21
  • AS – 23
Answer: As 11
Q9 | The share of outsiders in the Net Assets in subsidiary company is known as under :
  • Assets
  • subsidiary company's liability
  • Minority Interest
  • outsiders liability
Answer: outsiders liability
Q10 | Pre-acquisition profit in subsidiary company is considered as:
  • Revenue profit
  • Capital profit
  • Goodwill
  • Non of the above
Answer: Capital profit
Q11 | Excess of paid up value of the shares over cost of investment is considered as:
  • Goodwill
  • Capital Reserve
  • Minority Interest
  • Non of above
Answer: Goodwill
Q12 | Profit earned after acquisition of share is treated as
  • Capital profit
  • Revenue profit
  • General Reserve
  • Revaluation Loss
Answer: Capital profit
Q13 | Preparation of consolidated statement as per AS 21 is
  • Optional
  • Mandatory for listed Companies
  • Mandatory for Pvt. L
Answer: Mandatory for listed Companies
Q14 | Holding Co. share in revenue profits of subsidiary company is adjusted in :
  • Cost of control
  • Shown on Assets side of Balance sheet
  • Profit and loss account
  • None of above
Answer: Profit and loss account
Q15 | Unrealised profit on goods sold and included in stock is deducted from :
  • Capital Profit
  • Revenue Profit
  • Fixed Assets
  • Minority interest
Answer: Revenue Profit
Q16 | Face value debentures of subsidiary co. held by Holding Company is deducted from
  • Debentures
  • Cost of control
  • Minority interest
  • Debentures in consolidated balance sheet
Answer: Cost of control
Q17 | Which of the following statement is true:
  • There is no change in the amount of capital reserve before and after issue of bonus share of the issue is made from out of pre-acquisition profit.
  • There is change in the amount of capital reserve before and after issue of bonus share of the issue is made from out of post-acquisition profit.
  • There is change in the amount of capital reserve before and after issue of bonus share of the issue is made from out of pre-acquisition profit.
  • There is no connection between the issue of bonus shares and the calculation of capital reserve.
Answer: There is no change in the amount of capital reserve before and after issue of bonus share of the issue is made from out of pre-acquisition profit.
Q18 | Minority Interest includes :
  • Share in share capital
  • Share in Capital profit
  • Share in Revenue profit
  • All of the above
Answer: All of the above
Q19 | The Time interval between the date of acquisition of shares in subsidiary company and date of Balance Sheet of Holding Company is known as :
  • Pre-acquisition period
  • Post-acquisition period
  • Pre-commencement period
  • Pre-incorporation period
Answer: Post-acquisition period
Q20 | Pre-acquisition dividend received by Holding company is credited to
  • Profit & loss A/c
  • Capital profit
  • Investment A/c
  • Non of the above
Answer: Investment A/c
Q21 | Post Acquisition dividend received by Holding Company is debited to :
  • Bank A/c
  • profit & loss A/c
  • Dividend A/c
  • Investment A/c
Answer: profit & loss A/c
Q22 | Which Exchange rate will be considered for conversion of share capital of subsidiarycompany.
  • Opening Rate
  • Closing rate
  • Average Rate
  • Rate of which date share acquired (actual)
Answer: Rate of which date share acquired (actual)
Q23 | When two or more companies carrying on similar business decide to combine, a newcompany is formed, it is known as ..................
  • Amalgamation
  • Absorption
  • Internal reconstruction
  • External reconstruction
Answer: Amalgamation
Q24 | When one of the existing companies take over business of another company orcompanies, it is known as ...........
  • Amalgamation
  • Absorption
  • Internal reconstruction
  • External reconstruction
Answer: Absorption
Q25 | While calculating purchase price, the following values of assets are considered
  • Book value
  • New values fixed
  • Average values
  • Market values
Answer: New values fixed
Previous Next