Corporate Accounting Set 3
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This set of Corporate Accounting Multiple Choice Questions & Answers (MCQs) focuses on Corporate Accounting Set 3
Q1 | Activities that result in changes in the size and composition of the equity capital andborrowings of an entity are called:
- operating activities
- investing activities
- financing activities
- none of these
Q2 | Increase in share capital of a firm in the current year as compared to previous year should berecorded in the final cash flow statement under
- investing activities
- financing activities
- operating activities
- all of the above
Q3 | When presenting discontinued operations in the cash flow statement
- they are pooled with other current assets
- they are added to non-cash items
- they are ignored
- they are shown separately
Q4 | An entity shall explain how the transition from previous GAAP to IFRSs __________ itsreported financial position, financial performance and cash flows.
- adjusted
- corroborated
- affected
- benefited
Q5 | How does an entity adopt IFRSs for the first time?
- by reporting on its financial position, financial performance and cash flows in accordance with ifrss
- by issuing its first financial statements in which the entity adopts ifrss, by an explicit and unreserved statement of compliance with ifrss
- by reporting on its financial position, financial performance and cash flows in accordance with national requirements, which do not contradict ifrss
- by issuing its first financial statements in accordance with national requirements, which contain explicit and unreserved statement of compliance with ifrss
Q6 | Which of the following is the starting point for an entity accounting in accordance withIFRSs?
- the date when the decision about adopting ifrs has been made
- the date of issuance of the first financial statement in accordance with ifrs
- the date of transition to ifrss
- the date when the explicit and unreserved statement of compliance with ifrss has been made
Q7 | Accounting in India is governed by the
- rbi
- company law board
- income tax department
- icai
Q8 | The convergence of the Indian Accounting Standards with IFRS began in
- april 2010
- april 2012
- april 2015
- april 2000
Q9 | Ind AS will apply to
- both consolidated as well as standalone financials of the company
- only consolidated financials
- only standalone financials
- optional
Q10 | Total Number of Ind AS which are notified as of date?
- 40
- 41
- 42
- 43
Q11 | Total Number of IFRSs which are notified as of date?
- 16
- 17
- 18
- 19
Q12 | Total Number of IFRIC Interpretations which are notified as of date?
- 23
- 24
- 25
- 26
Q13 | Total Number of SIC Interpretations which are notified as of date?
- 30
- 31
- 32
- 33
Q14 | What items of inventories are outside the scope of Ind AS 2?
- work in progress arising under construction contracts
- raw materials including maintenance supplies
- share, debentures held as stock-in-trade
- machinery spares exclusively used with fixed assets
Q15 | A provision is
- a liability of uncertain timing or amount
- a possible obligation as a result of past events that is of uncertain timing or amount
- an adjustment to the carrying amount of assets
- none of these
Q16 | When Redeemable Preference shares are due for redemption, the entry passed is
- debit redeemable preference share capital a/c; credit cash a/c
- debit redeemable preference share capital a/c; credit preference shareholders a/c
- debit preference shareholders a/c; credit cash a/c
- debit preference shareholders a/c; credit capital reduction a/c
Q17 | Which of the following can be utilized for the redemption of preference shares of a companyout of profit:
- shares forfeited account
- development rebate reserve account
- capital redemption reserve account
- dividend equalization reserve
Q18 | Which of the following cannot be utilized for the redemption of preference shares of acompany
- securities premium on fresh issue of shares
- general reserve
- profit and loss account
- dividend equalization reserve
Q19 | A company cannot issue redeemable preference shares for a period exceeding _________.
- 6 years
- 7 years
- 8 years
- 20 years
Q20 | Which of the following cannot be used for the purpose of creation of capital redemptionreserve account?
- profit and loss account (credit balance)
- general reserve account
- dividend equalization reserve account
- unclaimed dividends account
Q21 | The Capital Redemption reserve is created for the following reasons:
- to maintain the capital intact
- to safeguard the interest company’s creditors
- both of the above
- none of the above
Q22 | Which of the following accounts can be transferred to capital redemption reserve account?
- general reserve account
- forfeited shares account
- profit prior to incorporation
- securities premium account
Q23 | The technique of converting figures into percentage in some common base is called _____.
- ratio analysis
- common size statement analysis
- trend percentages
- none of these
Q24 | The ratio which depicts the relationship between two items, one of which is drawn from theBalance Sheet and the other from the revenue account
- current ratio
- equity ratio
- net profit ratio
- debtors turnover ratio
Q25 | The ratio of liquid asset to current liabilities
- quick ratio
- current ratio
- absolute liquid ratio
- combined ratio