Advanced Corporate Accounting Set 1

Master of Commerce (M.com)

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

Q1 | _______________ are the financial statements of a group of companies.
  • Subsidiary Accounts
  • Group Accounts
  • Holding Accounts
  • None of the above
Answer: Group Accounts
Q2 | ___________ establishes principles for presenting and preparingconsolidated financial statements when an entity controls one or more other entities.
  • IFRS 12
  • IFRS 17
  • IFRS 10
  • IFRS 11
Answer: IFRS 10
Q3 | A _________ includes the income and expenses of a subsidiary in theconsolidated financial statements from the date it gains control until the date when the reporting entity ceases to control the subsidiary.
  • Holding entity
  • Reporting entity
  • Group Accounts
  • AS 110
Answer: Reporting entity
Q4 | ______________ is an asset representing the future economic benefitsarising from other assets acquired in a business combination that are not individually identified and separately recognized.
  • Goodwill
  • Capital Reserve
  • Plant and Machinery
  • Drawings
Answer: Goodwill
Q5 | ___________ transactions are transactions between entities within a groupof entities and that group is consolidated into one set of Consolidated Financial Statements.
  • Inter-group
  • Intra-group
  • Group
  • Financial
Answer: Intra-group
Q6 | The _____________ account appear in the Balance Sheet of the Holdingcompany at the time of consolidation.
  • Bonus Share
  • Security Premium
  • share premium
  • Capital Reserve
Answer: share premium
Q7 | __________ is the corporate management term for the act of reorganizingthe legal, ownership, operational or other structures of a company for the purpose of making it more profitable or better organized for its present needs.
  • Merger
  • Restructuring
  • External Reconstruction
  • Consolidation
Answer: Restructuring
Q8 | A merger is defined as the joining of two or more companies to form asingle legal entity.
  • Acquisition
  • Restructuring
  • Merger
  • Internal Construction
Answer: Merger
Q9 | All business combinations must be treated as _________ for accountingpurposes.
  • Acquisition
  • Restructuring
  • Merger
  • Internal Construction
Answer: Acquisition
Q10 | In external reconstruction, the liquidated company is called______________________.
  • Purchasing Company
  • Vendor Company
  • Holding Company
  • Group Company
Answer: Vendor Company
Q11 | The tax effect on the timing differences is termed as ___________________.
  • Current Tax expense
  • Income tax
  • Deferred Tax
  • Provision for tax
Answer: Deferred Tax
Q12 | The objective of ________________is to prescribe, for lessees and lessors,the appropriate accounting policies and disclosures to apply in relation to finance and operating leases.
  • IAS 11
  • IAS 17
  • IAS 7
  • IAS 19
Answer: IAS 17
Q13 | In finance lease agreement, the option for the lessee to purchase theproperty or equipment at a specific price is known as __________________________.
  • Balloon
  • Operating Leasing
  • Running Cost
  • Administrative Expense
Answer: Balloon
Q14 | ________________ provides information to the management regardinghuman resource cost and value.
  • MIS
  • Human Resource Accounting
  • Financial Statements
  • Cost Sheet
Answer: Human Resource Accounting
Q15 | ______________________is the assistance of finance professionals to settledisputes concerning allegations, fraudulence, suspicion of fraud and misconduct in business.
  • Forensic accounting
  • Human Resource Accounting
  • Financial Accounting
  • Cost Accounting
Answer: Forensic accounting
Q16 | ____________ aims to measure and inform the general public about thesocial welfare activities undertaken by the enterprise and their effects on the society
  • Corporate Accounting
  • Forensic Accounting
  • Social Audit
  • Environmental Accounting
Answer: Social Audit
Q17 | ________________ also called green accounting.
  • Corporate Social Responsibility
  • Corporate Accounting
  • Environmental accounting
  • Forensic Accounting
Answer: Environmental accounting
Q18 | ______________manages business finances effectively, make the rightdecisions and maximize your profits.
  • Corporate Accounting
  • Inflation Accounting
  • Environmental Accounting
  • Proactive Accounting
Answer: Proactive Accounting
Q19 | _____________ refers to the process of adjusting the financial statements ofa company to show the real financial position of the company during the inflationary period.
  • Corporate Accounting
  • Inflation Accounting
  • Environmental Accounting
  • Proactive Accounting
Answer: Inflation Accounting
Q20 | Increase in the price of various goods and services over a period of time isknown as ___________________
  • Deflation
  • Price Level Changes
  • Shift
  • Inflation
Answer: Inflation
Q21 | During inflation the purchasing power of money ___________________.
  • Increases
  • Does not change
  • Shift
  • Decreases
Answer: Increases
Q22 | Price for changes accounting can be done by the followingmethod__________________.
  • Current purchasing power, Current Value Accounting
  • Replacement Cost Accounting, Current Cost Accounting
  • Both a and b
  • None of the Above
Answer: Both a and b
Q23 | _________________Accounting deals with employees and management inan organization.
  • Inflation
  • Human Resource
  • Environment
  • Forensic
Answer: Human Resource
Q24 | Forensic Accounting is very much useful to _____________ industry.
  • Banking
  • Communication
  • Insurance
  • None of the above
Answer: Insurance
Q25 | A branch of accounting which decodes the human nature to hide failures,conceal problems, defend wrong decisions, and cover up mistakes is known as___________________.
  • Inflation Accounting
  • Human Resource Accounting
  • Environment Accounting
  • Forensic Accounting
Answer: Forensic Accounting
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