40 + Mcqs in Advanced Corporate Accounting Page 1 McqOptions

1.	In external reconstruction, the liquidated company is called ______________________.
A.	Purchasing Company
B.	Vendor Company
C.	Holding Company
D.	Group Company
Answer» C. Holding Company

Discussion

2.	___________ establishes principles for presenting and preparing consolidated financial statements when an entity controls one or more other entities.
A.	IFRS 12
B.	IFRS 17
C.	IFRS 10
D.	IFRS 11
Answer» D. IFRS 11

Discussion

3.	______________ is an asset representing the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.
A.	Goodwill
B.	Capital Reserve
C.	Plant and Machinery
D.	Drawings
Answer» B. Capital Reserve

Discussion

4.	A _________ includes the income and expenses of a subsidiary in the consolidated financial statements from the date it gains control until the date when the reporting entity ceases to control the subsidiary.
A.	Holding entity
B.	Reporting entity
C.	Group Accounts
D.	AS 110
Answer» C. Group Accounts

Discussion

5.	___________ transactions are transactions between entities within a group of entities and that group is consolidated into one set of Consolidated Financial Statements.
A.	Inter-group
B.	Intra-group
C.	Group
D.	Financial
Answer» C. Group

Discussion

6.	When one company takes over the management of the target company with the permission of the board, it is known as ________________ takeover.
A.	Friendly
B.	Hostile
C.	Acquiring
D.	Disinvestment
Answer» B. Hostile

Discussion

7.	The _____________ account appear in the Balance Sheet of the Holding company at the time of consolidation.
A.	Bonus Share
B.	Security Premium
C.	share premium
D.	Capital Reserve
Answer» D. Capital Reserve

Discussion

8.	__________ is the corporate management term for the act of reorganizing the legal, ownership, operational or other structures of a company for the purpose of making it more profitable or better organized for its present needs.
A.	Merger
B.	Restructuring
C.	External Reconstruction
D.	Consolidation
Answer» C. External Reconstruction

Discussion

9.	All business combinations must be treated as _________ for accounting purposes.
A.	Acquisition
B.	Restructuring
C.	Merger
D.	Internal Construction
Answer» B. Restructuring

Discussion

10.	A merger is defined as the joining of two or more companies to form a single legal entity.
A.	Acquisition
B.	Restructuring
C.	Merger
D.	Internal Construction
Answer» D. Internal Construction

Discussion

11.	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.
A.	IAS 11
B.	IAS 17
C.	IAS 7
D.	IAS 19
Answer» C. IAS 7

Discussion

12.	________________ provides information to the management regarding human resource cost and value.
A.	MIS
B.	Human Resource Accounting
C.	Financial Statements
D.	Cost Sheet
Answer» C. Financial Statements

Discussion

13.	In finance lease agreement, the option for the lessee to purchase the property or equipment at a specific price is known as __________________________.
A.	Balloon
B.	Operating Leasing
C.	Running Cost
D.	Administrative Expense
Answer» B. Operating Leasing

Discussion

14.	______________________is the assistance of finance professionals to settle disputes concerning allegations, fraudulence, suspicion of fraud and misconduct in business.
A.	Forensic accounting
B.	Human Resource Accounting
C.	Financial Accounting
D.	Cost Accounting
Answer» B. Human Resource Accounting

Discussion

15.	____________ aims to measure and inform the general public about the social welfare activities undertaken by the enterprise and their effects on the society
A.	Corporate Accounting
B.	Forensic Accounting
C.	Social Audit
D.	Environmental Accounting
Answer» D. Environmental Accounting

Discussion

16.	______________manages business finances effectively, make the right decisions and maximize your profits.
A.	Corporate Accounting
B.	Inflation Accounting
C.	Environmental Accounting
D.	Proactive Accounting
Answer» E.

Discussion

17.	_____________ refers to the process of adjusting the financial statements of a company to show the real financial position of the company during the inflationary period.
A.	Corporate Accounting
B.	Inflation Accounting
C.	Environmental Accounting
D.	Proactive Accounting
Answer» C. Environmental Accounting

Discussion

18.	Increase in the price of various goods and services over a period of time is known as ___________________
A.	Deflation
B.	Price Level Changes
C.	Shift
D.	Inflation
Answer» E.

Discussion

19.	_________________Accounting deals with employees and management in an organization.
A.	Inflation
B.	Human Resource
C.	Environment
D.	Forensic
Answer» C. Environment

Discussion

20.	Price for changes accounting can be done by the following method__________________.
A.	Current purchasing power, Current Value Accounting
B.	Replacement Cost Accounting, Current Cost Accounting
C.	Both a and b
D.	None of the Above
Answer» D. None of the Above

Discussion

21.	The main elements of environmental accounting are______________________.
A.	Environmental Conservation costs and activities and environmental benefits
B.	Environmental activities and environmental benefits
C.	Environmental conversion costs and environmental benefits
D.	None of the above
Answer» B. Environmental activities and environmental benefits

Discussion

22.	______________ is a term used in the field of accounting which measures the environmental and natural resources accounting, which tends to incorporate the natural and environmental assets of the firm and it s resources.
A.	Social Accounting
B.	Green Accounting
C.	Inflation Accounting
D.	None of the above
Answer» C. Inflation Accounting

Discussion

23.	The recognition of the close link between an organisation's decisions and activities and its impact on the natural environment is called __________.
A.	Global Environment
B.	Greening of management
C.	Social actions
D.	None of the above
Answer» C. Social actions

Discussion

24.	_____________ establishes the principles that an entity applies when reporting information about the nature, amount, timing and uncertainty of revenue and cash flows from a contract with a customer.
A.	IFRS 18
B.	IFRS 14
C.	IFRS 15
D.	IFRS 17
Answer» D. IFRS 17

Discussion

25.	A ______________Accounting signifies the activities related to the conservation of Environment.
A.	Inflation
B.	Human Resource
C.	Environment
D.	Forensic
Answer» D. Forensic

Discussion

26.	__________ is the method were all assets and liabilities are recorded on a balance sheet according to the cost of replacing them rather than their historical costs.
A.	Replacement Cost Accounting
B.	Current Value
C.	Current Cost Accounting
D.	None of the above
Answer» B. Current Value

Discussion

27.	Merger where two companies are in the same or related industries but do not offer the same products, but related products and may share similar distribution channels, providing synergies for the merger is known as ____________ Merger.
A.	Horizontal
B.	Co generic
C.	Vertical
D.	Conglomerate
Answer» C. Vertical

Discussion

28.	A ____________ is a lease that transfers substantially all the risks and rewards incidental to ownership of an asset. Title may or may not eventually be transferred.
A.	Finance lease
B.	Operating lease
C.	Lessor
D.	Contract
Answer» B. Operating lease

Discussion

29.	A ______________ is defined as an entity that provides the right to use an asset for a period of time in exchange for consideration.
A.	Contractor
B.	lessor
C.	Lessee
D.	None of the above
Answer» C. Lessee

Discussion

30.	A form of corporate restructuring in which the entity's business operations are segregated into one or more components is known as __________________.
A.	Horizontal
B.	Disinvestment
C.	Demerger
D.	Takeover
Answer» D. Takeover

Discussion

31.	_________ highlights both the contribution of business enterprises to economic wellbeing and the costs imposed in the form of pollution or resource degradation.
A.	Social Accounting
B.	Environmental Accounting
C.	Inflation Accounting
D.	None of the above
Answer» C. Inflation Accounting

Discussion

32.	____________ is the estimated remaining period, from the commencement of the lease term, without limitation by the lease term, over which the economic benefits embodied in the asset are expected to be consumed by the entity.
A.	Economic Life
B.	Useful Life
C.	Fair value
D.	None of the above
Answer» C. Fair value

Discussion

33.	Any agreement between two or more parties to collaborate with each other, in order to achieve certain objectives while continuing to remain independent organizations is called _______________.
A.	Strategic alliance
B.	Franchising
C.	Joint Venture
D.	Disinvestment
Answer» B. Franchising

Discussion

34.	The stakeholder view of social responsibility states that organisations must respond to the needs of
A.	employees and customers
B.	shareholders and owners
C.	all interested parties
D.	all those who might sue the organisation
Answer» D. all those who might sue the organisation

Discussion

35.	________________accounting is the process by which companies and organizations record the financial impact of agreements to rent or finance the rights to use specific assets.
A.	Corporate
B.	Responsibility
C.	Green
D.	Lease
Answer» E.

Discussion

36.	_______________ is concerned with the development of measurement system to monitor social performance.
A.	Social Accounting
B.	Environmental Accounting
C.	Inflation Accounting
D.	None of the above
Answer» B. Environmental Accounting

Discussion

37.	_____________ is the process of significantly changing a company's business model, management team or financial structure to address challenges and increase shareholder value.
A.	Corporate restructuring
B.	Corporate reporting
C.	Amalgamation
D.	Reconstruction
Answer» B. Corporate reporting

Discussion

38.	_________is about the measurement of the items in the consolidated financial statements, such as goodwill, non-controlling interest, etc.
A.	IFRS 4
B.	IFRS 10
C.	IFRS 9
D.	IFRS 3
Answer» E.

Discussion

39.	The objective of _________ is to establish the principles that an entity shall apply to report useful information to users of financial statements about the nature, amount, timing and uncertainty of revenue and cash flows arising from a contract with a customer.
A.	Ind AS 115
B.	Ind AS 100
C.	Ind AS 110
D.	Ind AS 114
Answer» B. Ind AS 100

Discussion

40.	A branch of accounting which decodes the human nature to hide failures, conceal problems, defend wrong decisions, and cover up mistakes is known as___________________.
A.	Inflation Accounting
B.	Human Resource Accounting
C.	Environment Accounting
D.	Forensic Accounting
Answer» E.

Discussion

Explore topic-wise MCQs in Master of Commerce (MDotcom).

In external reconstruction, the liquidated company is called ______________________.

___________ establishes principles for presenting and preparing consolidated financial statements when an entity controls one or more other entities.

______________ is an asset representing the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.

A _________ includes the income and expenses of a subsidiary in the consolidated financial statements from the date it gains control until the date when the reporting entity ceases to control the subsidiary.

___________ transactions are transactions between entities within a group of entities and that group is consolidated into one set of Consolidated Financial Statements.

When one company takes over the management of the target company with the permission of the board, it is known as ________________ takeover.

The _____________ account appear in the Balance Sheet of the Holding company at the time of consolidation.

__________ is the corporate management term for the act of reorganizing the legal, ownership, operational or other structures of a company for the purpose of making it more profitable or better organized for its present needs.

All business combinations must be treated as _________ for accounting purposes.

A merger is defined as the joining of two or more companies to form a single legal entity.

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.

________________ provides information to the management regarding human resource cost and value.

In finance lease agreement, the option for the lessee to purchase the property or equipment at a specific price is known as __________________________.

______________________is the assistance of finance professionals to settle disputes concerning allegations, fraudulence, suspicion of fraud and misconduct in business.

____________ aims to measure and inform the general public about the social welfare activities undertaken by the enterprise and their effects on the society

______________manages business finances effectively, make the right decisions and maximize your profits.

_____________ refers to the process of adjusting the financial statements of a company to show the real financial position of the company during the inflationary period.

Increase in the price of various goods and services over a period of time is known as ___________________

_________________Accounting deals with employees and management in an organization.

Price for changes accounting can be done by the following method__________________.

The main elements of environmental accounting are______________________.

______________ is a term used in the field of accounting which measures the environmental and natural resources accounting, which tends to incorporate the natural and environmental assets of the firm and it s resources.

The recognition of the close link between an organisation's decisions and activities and its impact on the natural environment is called __________.

_____________ establishes the principles that an entity applies when reporting information about the nature, amount, timing and uncertainty of revenue and cash flows from a contract with a customer.

A ______________Accounting signifies the activities related to the conservation of Environment.

__________ is the method were all assets and liabilities are recorded on a balance sheet according to the cost of replacing them rather than their historical costs.

Merger where two companies are in the same or related industries but do not offer the same products, but related products and may share similar distribution channels, providing synergies for the merger is known as ____________ Merger.

A ____________ is a lease that transfers substantially all the risks and rewards incidental to ownership of an asset. Title may or may not eventually be transferred.

A ______________ is defined as an entity that provides the right to use an asset for a period of time in exchange for consideration.

A form of corporate restructuring in which the entity's business operations are segregated into one or more components is known as __________________.

_________ highlights both the contribution of business enterprises to economic wellbeing and the costs imposed in the form of pollution or resource degradation.

____________ is the estimated remaining period, from the commencement of the lease term, without limitation by the lease term, over which the economic benefits embodied in the asset are expected to be consumed by the entity.

Any agreement between two or more parties to collaborate with each other, in order to achieve certain objectives while continuing to remain independent organizations is called _______________.

The stakeholder view of social responsibility states that organisations must respond to the needs of

________________accounting is the process by which companies and organizations record the financial impact of agreements to rent or finance the rights to use specific assets.

_______________ is concerned with the development of measurement system to monitor social performance.

_____________ is the process of significantly changing a company's business model, management team or financial structure to address challenges and increase shareholder value.

_________is about the measurement of the items in the consolidated financial statements, such as goodwill, non-controlling interest, etc.

The objective of _________ is to establish the principles that an entity shall apply to report useful information to users of financial statements about the nature, amount, timing and uncertainty of revenue and cash flows arising from a contract with a customer.

A branch of accounting which decodes the human nature to hide failures, conceal problems, defend wrong decisions, and cover up mistakes is known as___________________.