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MCQOPTIONS
This section includes 2081 Mcqs, each offering curated multiple-choice questions to sharpen your Finance & Accounting knowledge and support exam preparation. Choose a topic below to get started.
| 851. |
Total Number of SIC Interpretations which are notified as of date? |
| A. | 30 |
| B. | 31 |
| C. | 32 |
| D. | 33 |
| Answer» E. | |
| 852. |
Total Number of IFRSs which are notified as of date? |
| A. | 16 |
| B. | 17 |
| C. | 18 |
| D. | 19 |
| Answer» B. 17 | |
| 853. |
What items of inventories are outside the scope of Ind AS 2? |
| A. | work in progress arising under construction contracts |
| B. | raw materials including maintenance supplies |
| C. | share, debentures held as stock-in-trade |
| D. | machinery spares exclusively used with fixed assets |
| Answer» B. raw materials including maintenance supplies | |
| 854. |
Total Number of Ind AS which are notified as of date? |
| A. | 40 |
| B. | 41 |
| C. | 42 |
| D. | 43 |
| Answer» D. 43 | |
| 855. |
Accounting in India is governed by the |
| A. | rbi |
| B. | company law board |
| C. | income tax department |
| D. | icai |
| Answer» E. | |
| 856. |
Ind AS will apply to |
| A. | both consolidated as well as standalone financials of the company |
| B. | only consolidated financials |
| C. | only standalone financials |
| D. | optional |
| Answer» B. only consolidated financials | |
| 857. |
The convergence of the Indian Accounting Standards with IFRS began in |
| A. | april 2010 |
| B. | april 2012 |
| C. | april 2015 |
| D. | april 2000 |
| Answer» D. april 2000 | |
| 858. |
Which of the following is the starting point for an entity accounting in accordance withIFRSs? |
| A. | the date when the decision about adopting ifrs has been made |
| B. | the date of issuance of the first financial statement in accordance with ifrs |
| C. | the date of transition to ifrss |
| D. | the date when the explicit and unreserved statement of compliance with ifrss has been made |
| Answer» D. the date when the explicit and unreserved statement of compliance with ifrss has been made | |
| 859. |
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 |
| A. | investing activities |
| B. | financing activities |
| C. | operating activities |
| D. | all of the above |
| Answer» C. operating activities | |
| 860. |
How does an entity adopt IFRSs for the first time? |
| A. | by reporting on its financial position, financial performance and cash flows in accordance with ifrss |
| B. | by issuing its first financial statements in which the entity adopts ifrss, by an explicit and unreserved statement of compliance with ifrss |
| C. | by reporting on its financial position, financial performance and cash flows in accordance with national requirements, which do not contradict ifrss |
| D. | by issuing its first financial statements in accordance with national requirements, which contain explicit and unreserved statement of compliance with ifrss |
| Answer» C. by reporting on its financial position, financial performance and cash flows in accordance with national requirements, which do not contradict ifrss | |
| 861. |
When presenting discontinued operations in the cash flow statement |
| A. | they are pooled with other current assets |
| B. | they are added to non-cash items |
| C. | they are ignored |
| D. | they are shown separately |
| Answer» E. | |
| 862. |
Activities that result in changes in the size and composition of the equity capital andborrowings of an entity are called: |
| A. | operating activities |
| B. | investing activities |
| C. | financing activities |
| D. | none of these |
| Answer» D. none of these | |
| 863. |
An entity shall explain how the transition from previous GAAP to IFRSs __________ itsreported financial position, financial performance and cash flows. |
| A. | adjusted |
| B. | corroborated |
| C. | affected |
| D. | benefited |
| Answer» D. benefited | |
| 864. |
Which of the following is not a heading for cash flows under Ind AS 7? |
| A. | cash flows from normal activities |
| B. | cash flows from operating activities |
| C. | cash flows from investing activities |
| D. | cash flows from financing activities |
| Answer» B. cash flows from operating activities | |
| 865. |
Cash payments to and on behalf of employees is an example of cash flows from |
| A. | operating activities |
| B. | financing activities |
| C. | investing activities |
| D. | none of these |
| Answer» B. financing activities | |
| 866. |
The principal revenue-producing activities of an entity are called |
| A. | investing activities |
| B. | operating activities |
| C. | financing activities |
| D. | none of these |
| Answer» C. financing activities | |
| 867. |
Activities that result in changes in the size and composition of the equity capital andborrowings of an entity are called |
| A. | financing activities |
| B. | operating activities |
| C. | investing activities |
| D. | none of these |
| Answer» B. operating activities | |
| 868. |
Under Ind AS 12 a temporary difference is defined as |
| A. | the difference between the tax base of an item and that items carrying amount in the balance sheet |
| B. | the difference between the carrying amount of an item and that items fair value less costs to sell |
| C. | the difference between the carrying amount of an item and that items revalued amount |
| D. | a difference which will reverse in the next accounting period |
| Answer» D. a difference which will reverse in the next accounting period | |
| 869. |
After convergence of Indian accounting standards with IFRS, new standard issued forpreparing the cash flow statement is: |
| A. | ind as 10 |
| B. | ind as 3 |
| C. | ind as 7 |
| D. | ind as 12 |
| Answer» D. ind as 12 | |
| 870. |
How are unallocated overheads treated as per Ind AS 2? |
| A. | recognise as an expense in the period in which they are incurred |
| B. | recognise as an expense so long as there is a profit in the current period |
| C. | treated as deferred expenditure |
| D. | capitalised with the cost of inventories |
| Answer» B. recognise as an expense so long as there is a profit in the current period | |
| 871. |
Which of the following costs must be expensed under Ind AS 2? |
| A. | selling and distribution overheads incurred in the ordinary course of business |
| B. | variable production overheads that are allocated to each unit based on actual usage |
| C. | import duties on raw materials that are paid to the authorities |
| D. | costs of purchase that are paid to the suppliers of raw materials |
| Answer» B. variable production overheads that are allocated to each unit based on actual usage | |
| 872. |
Which of the below mentioned formula are covered by Ind AS 2? (i) FIFO, (ii) LIFO, (iii)Weighted Average. |
| A. | i, ii |
| B. | i, iii |
| C. | ii, iii |
| D. | all |
| Answer» C. ii, iii | |
| 873. |
Which of the following cost models is not permitted under Ind AS 2? |
| A. | fifo |
| B. | lifo |
| C. | actual cost |
| D. | simple average |
| Answer» C. actual cost | |
| 874. |
Under Ind AS 2, fixed production overheads should be allocated to items of inventory on thebasis of ____ production capacity. |
| A. | actual |
| B. | abnormal |
| C. | normal |
| D. | estimated |
| Answer» D. estimated | |
| 875. |
Which of the following items are excluded from the scope of Ind AS 2 Inventories? |
| A. | inventories that are stated at net realisable value |
| B. | assets held for sale in the ordinary course of business |
| C. | inventories whose fair value is more than the cost |
| D. | agricultural produce at the point of harvest |
| Answer» E. | |
| 876. |
Which of the following items should be disclosed as per the requirements of Ind AS 2? |
| A. | carrying amount of inventories pledged as security for liabilities |
| B. | average lead time of procurement for major classes of inventories |
| C. | list of major customers to whom the inventories were sold during the reporting period |
| D. | average holding period of inventories of the entity as at the end of the reporting period |
| Answer» B. average lead time of procurement for major classes of inventories | |
| 877. |
Which of the following is not a qualifying asset under Ind AS 23 Borrowing Costs? |
| A. | manufacturing plants |
| B. | made to order inventory |
| C. | mass produced inventory |
| D. | investment property |
| Answer» D. investment property | |
| 878. |
Which of the following measurement models is not permitted for the subsequentmeasurement of intangible assets under Ind AS 38? |
| A. | revaluation model |
| B. | fair value model |
| C. | cost model |
| D. | capital assets pricing model |
| Answer» E. | |
| 879. |
What is the correct treatment for all eligible borrowing costs under Ind AS 23? |
| A. | expensed |
| B. | capitalised |
| C. | invested |
| D. | none of the above |
| Answer» C. invested | |
| 880. |
Which of the following is an intangible asset under Ind AS 38? |
| A. | patent rights |
| B. | market share |
| C. | customer loyalty |
| D. | technical knowledge training |
| Answer» B. market share | |
| 881. |
What are intangible assets? |
| A. | nonmonetary assets without physical substance |
| B. | monetary assets without physical substance |
| C. | monetary assets with physical substance |
| D. | nonmonetary assets with physical substance |
| Answer» B. monetary assets without physical substance | |
| 882. |
Which of the following is not a requirement to capitalise development costs under Ind AS 38Intangible Assets? |
| A. | the commercial feasibility for the asset may be uncertain |
| B. | it must be technically feasible |
| C. | the entity intends to sell the completed intangible asset |
| D. | the entity can demonstrate how the asset will generate future economic benefits |
| Answer» B. it must be technically feasible | |
| 883. |
An intangible asset with a finite useful life should be amortised over |
| A. | a period determined by management |
| B. | five years |
| C. | its expected useful life |
| D. | no foreseeable limit |
| Answer» D. no foreseeable limit | |
| 884. |
Where is the amortisation of an intangible asset recognised? |
| A. | equity |
| B. | profit or loss |
| C. | statement of financial position |
| D. | statement of cash flows |
| Answer» C. statement of financial position | |
| 885. |
How should an asset be initially recognised in the financial statements? |
| A. | measure at market value |
| B. | measure at cost |
| C. | measure at net realisable value |
| D. | measure at fair value |
| Answer» C. measure at net realisable value | |
| 886. |
Which of the following is not an asset that falls under the scope of Ind AS 16? |
| A. | assets held for sale in the normal course of business |
| B. | tangible assets |
| C. | assets expected to be used for more than one period |
| D. | assets held for the production or supply of goods or services |
| Answer» B. tangible assets | |
| 887. |
Which of the following is not a component of cost of an asset? |
| A. | purchase price |
| B. | refundable sales tax |
| C. | import duties |
| D. | estimate of compulsory future dismantling costs |
| Answer» C. import duties | |
| 888. |
When an item of property, plant and equipment is revalued, what should be revalued? |
| A. | a selection of assets decided by management |
| B. | a selection of assets picked at random |
| C. | the whole class of assets to which it belongs |
| D. | the individual asset |
| Answer» D. the individual asset | |
| 889. |
When an asset is sold or disposed of, where is the gain or loss recognised? |
| A. | asset disposal account |
| B. | profit and loss |
| C. | revaluation reserve |
| D. | depreciation |
| Answer» C. revaluation reserve | |
| 890. |
Under Ind AS 16, which two subsequent accounting treatments are allowed subsequently toinitial recognition? |
| A. | cost model and present value model |
| B. | cost model and revaluation model |
| C. | fair value model and revaluation model |
| D. | fair value model and cost model |
| Answer» C. fair value model and revaluation model | |
| 891. |
Which of the following disclosures is not required when an asset is revalued? |
| A. | name of valuer |
| B. | revaluation surplus |
| C. | effective date of revaluation |
| D. | whether valuer was independent |
| Answer» B. revaluation surplus | |
| 892. |
Which of the following is covered by Ind AS 16 Property, Plant and Equipment? |
| A. | office buildings |
| B. | assets held for sale |
| C. | exploration assets |
| D. | biological assets related to agricultural activity |
| Answer» B. assets held for sale | |
| 893. |
What is the amount an asset could achieve if sold between knowledgeable, willing parties inan arm’s length transaction? |
| A. | current value |
| B. | net present value |
| C. | written down value |
| D. | fair value |
| Answer» E. | |
| 894. |
Under Ind AS 16, which of the following is not allowable as a directly attributable cost of amachine? |
| A. | delivery |
| B. | site preparation |
| C. | estimated dismantling costs |
| D. | initial test batches |
| Answer» E. | |
| 895. |
What is the net amount an entity expects to obtain for an asset at the end of its useful life? |
| A. | depreciated value |
| B. | residual value |
| C. | present value |
| D. | fair value |
| Answer» C. present value | |
| 896. |
Which of these is an allowable cost of an asset under Ind AS 16? |
| A. | general overheads |
| B. | professional fees |
| C. | administration expenses |
| D. | general overheads |
| Answer» C. administration expenses | |
| 897. |
Under Ind AS 16 if an asset is idle |
| A. | depreciation is paused |
| B. | depreciation for the entire period does not apply |
| C. | depreciation is ignored |
| D. | depreciation continues |
| Answer» E. | |
| 898. |
Under Ind AS 16 how often the useful life of an asset should be reviewed? |
| A. | at least at each financial year end |
| B. | every six months |
| C. | at management’s discretion |
| D. | never |
| Answer» B. every six months | |
| 899. |
Correcting the recognition measurement and disclosure of amounts in financial statements asif a prior period error had never occurred. This is: |
| A. | retrospective restatement |
| B. | retrospective application |
| C. | changes in accounting estimate |
| D. | delayed application |
| Answer» B. retrospective application | |
| 900. |
Under Ind AS 1 how often should financial statements be prepared? |
| A. | at least annually |
| B. | no more than annually |
| C. | as often as the company requires |
| D. | monthly |
| Answer» B. no more than annually | |