MCQOPTIONS
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MCQOPTIONS
This section includes 30 Mcqs, each offering curated multiple-choice questions to sharpen your Bachelor of Commerce in Finance (BDotCom Finance) knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
..is the process of determining the monetary amounts at which the elements of financial statements are recognized and carried in the financial statements. |
| A. | Recognition |
| B. | Addition |
| C. | Measurement |
| D. | Carrying |
| Answer» D. Carrying | |
| 2. |
Which method depreciation is most appropriate for the entity to compute depreciation for the significant parts of the aircraft? |
| A. | Straight line method for all parts |
| B. | Unit production method based on air miles flown for the jet engines and SLM method for all other parts. |
| C. | Diminishing balance method for all parts |
| D. | None of the above |
| Answer» C. Diminishing balance method for all parts | |
| 3. |
A property developer must classify properties that it hold for sale in the ordinary course of business as |
| A. | Inventories |
| B. | Property, Plant and Equipment |
| C. | Financial Assets |
| D. | Investment property |
| Answer» B. Property, Plant and Equipment | |
| 4. |
Adjustment of the carrying amount of an asset or liability or the consumption of an asset is defined as, |
| A. | A change in the accounting estimate |
| B. | Accounting policies |
| C. | Misstatements |
| D. | Error |
| Answer» B. Accounting policies | |
| 5. |
The process of converting foreign subsidiary financial statement into the home currency is known as |
| A. | Transmission |
| B. | Translation |
| C. | Consolidation |
| D. | Reconstruction |
| Answer» C. Consolidation | |
| 6. |
Present value of expected future cash flows generated by an asset, plus its expected disposal value is called. |
| A. | Value in use |
| B. | Recoverable amount |
| C. | Carrying amount |
| D. | NRV |
| Answer» B. Recoverable amount | |
| 7. |
When the recoverable amount of an asset is less than its carrying value in the statement of financial position, the asset is said to be |
| A. | Obsolete |
| B. | Value less |
| C. | Impaired |
| D. | Fully depreciated |
| Answer» D. Fully depreciated | |
| 8. |
At the point of harvest an entity measures fruits (agricultural produce) that it picks from its orchards (biological assets): |
| A. | At fair value. |
| B. | At fair value less costs to sell. |
| C. | At cost. |
| D. | At the lower of cost and estimated selling price less costs to complete and sell. |
| Answer» C. At cost. | |
| 9. |
.is the amount of income taxes payable on the taxable profit for a period, in accordance with rules established by the tax authorities |
| A. | Tax expense |
| B. | Tax base |
| C. | Deferred tax |
| D. | Current tax |
| Answer» E. | |
| 10. |
Total borrowings used for construction of an office building are Rs.30, 00000. Entity issued 8% debentures worth 10,00000 for this purpose and balance amount was utilized from its common pool including 10% bank loan of Rs.1000000 and 9.5% bank loan of Rs.1000000. What is the amount of borrowing cost to be capitalized? |
| A. | 275000 |
| B. | 300000 |
| C. | 250000 |
| D. | 265000 |
| Answer» B. 300000 | |
| 11. |
Carrying amount of an asset as on 1st April 2015 is Rs. 1500000 and depreciation for the year 2015 2016 is 15000. Fair value of the asset less cost of disposal as on 31 March 2016 is Rs. 120000. Which of the following is the carrying amount at 1st April 2106? |
| A. | 120000 |
| B. | 135000 |
| C. | 150000 |
| D. | 165000 |
| Answer» B. 135000 | |
| 12. |
.is the price at which goods or services would be sold separately to a customer |
| A. | Stand - alone price |
| B. | Contract price |
| C. | Individual price |
| D. | Sales price |
| Answer» B. Contract price | |
| 13. |
An item of property , plant and equipment that qualifies for recognition as an asset shall be measured at |
| A. | Cost |
| B. | Market price |
| C. | Replacement value |
| D. | Opportunity cost |
| Answer» B. Market price | |
| 14. |
A biological asset used in agricultural activity whose fair value is readily determinable without undue cost or effort is accounted for using: |
| A. | The fair value model. |
| B. | The cost model or the fair value model (an accounting policy choice). |
| C. | The cost model. |
| D. | Any of the above |
| Answer» B. The cost model or the fair value model (an accounting policy choice). | |
| 15. |
Which of the following is not a minimum item on the face of the statement of comprehensive income? |
| A. | Revenue |
| B. | Finance cost |
| C. | Deferred tax |
| D. | Profit or Loss |
| Answer» D. Profit or Loss | |
| 16. |
Applying a new policy to transaction as if that policy had always been applied. This is called, |
| A. | Retrospective restatement |
| B. | Retrospective application |
| C. | Change in accounting estimates |
| D. | None of the above |
| Answer» C. Change in accounting estimates | |
| 17. |
In a land lease, if title does not pass at the end of a lease to the lessee, it is normally treated as Finance lease . |
| A. | Statement is true |
| B. | Statement is false |
| C. | Statement is not relevant |
| D. | none |
| Answer» C. Statement is not relevant | |
| 18. |
When a lease transfers substantially all the risks and rewards of ownership to lessee, this is called .. |
| A. | Operating lease |
| B. | Finance lease |
| C. | Hire purchase |
| D. | None of the above |
| Answer» C. Hire purchase | |
| 19. |
Specific principles, bases, conventions, rules and practices applied in presenting financial statements, are called, |
| A. | Accounting estimates |
| B. | Accounting policies |
| C. | Prospective application |
| D. | Accounting estimates |
| Answer» C. Prospective application | |
| 20. |
As per IFRS15, an agreement between two or more parties that creates enforceable right and obligation is called . |
| A. | Agreement |
| B. | Contract |
| C. | Performance obligation |
| D. | Liability |
| Answer» C. Performance obligation | |
| 21. |
Under Ind AS 1, which of the following must be disclosed on the statement of financial position? |
| A. | Property, Plant and Equipment |
| B. | Biological assets |
| C. | Provisions |
| D. | All of the above |
| Answer» E. | |
| 22. |
..are resources controlled by the entity as a result of past events and from which future economic benefits are expected to flow to the entity. |
| A. | Assets |
| B. | Income |
| C. | Liability |
| D. | Current assets |
| Answer» B. Income | |
| 23. |
When after the end of the reporting period an event occurs that is indicative of conditions that arose after the end of the reporting period: |
| A. | The entity discloses the nature and effect of the event in the financial statements. |
| B. | The entity adjusts the related amounts recognised in the financial statements. |
| C. | Both of the above statements are true. |
| D. | None of the above |
| Answer» B. The entity adjusts the related amounts recognised in the financial statements. | |
| 24. |
As per Ind AS 23, assets that require substantial time to bring to their intended use or to salable condition are known as |
| A. | Tangible asset |
| B. | Intangible asset |
| C. | Qualifying asset |
| D. | None of the above |
| Answer» D. None of the above | |
| 25. |
. are the amount of income tax payable in future period for taxable temporary differences. |
| A. | Deferred tax asset |
| B. | Deferred tax liability |
| C. | Current tax |
| D. | Tax base |
| Answer» C. Current tax | |
| 26. |
Consideration which varies upon certain future events which may or may not occur is called . |
| A. | Variable consideration |
| B. | Future consideration |
| C. | Agreed price |
| D. | None of these |
| Answer» B. Future consideration | |
| 27. |
A . is an operating segment or results from the aggregation of two or more operating segments that meets quantitative thresholds. |
| A. | Joint Venture |
| B. | Associates |
| C. | Reportable segment |
| D. | None of the above |
| Answer» D. None of the above | |
| 28. |
A statement showing information on increase or decrease in net asset or wealth of an entity is called |
| A. | Statement of financial position |
| B. | Statement of comprehensive income |
| C. | Cash flow statement |
| D. | Statement of Changes in equity |
| Answer» E. | |
| 29. |
Activities that result in changes in the size and composition of equity capital and borrowing of an entity are called |
| A. | Operating activity |
| B. | Investment activity |
| C. | Income producing activity |
| D. | Financing activity |
| Answer» E. | |
| 30. |
Omission or misstatement in entity s financial statement for one or more prior period is called |
| A. | Change in accounting estimate |
| B. | Prior period errors |
| C. | Change in accounting policy |
| D. | None of these |
| Answer» C. Change in accounting policy | |