Question 1

Accounting profession of India is governed by………………….

Accepted Answer

A) ICAI 
B) Ministry of Corporate Affairs 
C) Govt. Of India 
D) ASB 
A) ICAI 
B) Ministry of Corporate Affairs 
C) Govt. Of India 
D) ASB A

Question 2

What do you mean by ASB?

Accepted Answer

A) Accounting Security Board 
B) Accounting Standard Board 
C) Accounting Standardization Board 
D) None of these 
A) Accounting Security Board 
B) Accounting Standard Board 
C) Accounting Standardization Board 
D) None of these B

Question 3

Indian Accounting Standard 3 (AS3) deals with….

Accepted Answer

A) Amalgamation 
B) Lease 
C) Cash flow Statement 
D) Depreciation Accounting 
A) Amalgamation 
B) Lease 
C) Cash flow Statement 
D) Depreciation Accounting C

Question 4

The useful life of an intangible asset may be,

Accepted Answer

A) Finite 
B) Infinite 
C) Either (a) or (b) 
D) None of these 
A) Finite 
B) Infinite 
C) Either (a) or (b) 
D) None of these

Question 5

Inventories must be measured at

Accepted Answer

A) Cost 
B) Lower of cost and estimated selling price less cost to complete and sell 
C) Lower of cost and fair value less cost to complete and sell 
D) None of these 
A) Cost 
B) Lower of cost and estimated selling price less cost to complete and sell 
C) Lower of cost and fair value less cost to complete and sell 
D) None of these

Question 6

Which of the following asset is not coming under the scope of Ind AS 16?

Accepted Answer

A) Factory building 
B) Sales Van 
C) Right to extract fuel from Government owned field 
D) All of the above 
A) Factory building 
B) Sales Van 
C) Right to extract fuel from Government owned field 
D) All of the above

Question 7

Property, Plant and Equipment are defined as,

Accepted Answer

A) Tangible assets held for sale in the ordinary course of business 
B) Tangible assets held to earn rental or for capital appreciation or both 
C) Tangible assets used in the process of production or supply of goods or services or for rental to others 
D) None of the above 
A) Tangible assets held for sale in the ordinary course of business 
B) Tangible assets held to earn rental or for capital appreciation or both 
C) Tangible assets used in the process of production or supply of goods or services or for rental to others 
D) None of the above

Question 8

Cost of inventory is a sum of

Accepted Answer

A) Cost of purchase and cost of conversion 
B) Direct cost, indirect cost and other cost 
C) Cost of purchase, cost of conversion and other cost to bring the material to the present location 
D) None of these 
A) Cost of purchase and cost of conversion 
B) Direct cost, indirect cost and other cost 
C) Cost of purchase, cost of conversion and other cost to bring the material to the present location 
D) None of these

Question 9

Consumable stores are

Accepted Answer

A) Inventories 
B) Property, Plant and Equipment 
C) Investment Property 
D) Intangible Asset 
A) Inventories 
B) Property, Plant and Equipment 
C) Investment Property 
D) Intangible Asset

Question 10

FASB is based in…………….

Accepted Answer

A) London 
B) Chennai 
C) New York 
D) Norwalk 
A) London 
B) Chennai 
C) New York 
D) Norwalk

Question 11

Cost of inventory does not include

Accepted Answer

A) Salary of factory staff 
B) Storage cost necessary in the production process 
C) Cost of abnormal wastage 
D) None refundable taxes 
A) Salary of factory staff 
B) Storage cost necessary in the production process 
C) Cost of abnormal wastage 
D) None refundable taxes

Question 12

ASB was set up in India on………………

Accepted Answer

A) 21 April 1977 
B) 1 April 1977 
C) 1 January 1976 
D) 31 March 1978 
A) 21 April 1977 
B) 1 April 1977 
C) 1 January 1976 
D) 31 March 1978

Question 13

An entity must measure its Property, Plant and Equipment after initial recognition at,

Accepted Answer

A) Cost 
B) Cost less accumulated depreciation and impairment losses if any 
C) Cost less accumulated depreciation and impairment losses if any including cost of day to day servicing 
D) None of the above 
A) Cost 
B) Cost less accumulated depreciation and impairment losses if any 
C) Cost less accumulated depreciation and impairment losses if any including cost of day to day servicing 
D) None of the above

Question 14

…………….is the residual interest in the asset of an entity after deducting all liabilities

Accepted Answer

A) Capital 
B) Net Asset 
C) Depreciation 
D) Equity 
A) Capital 
B) Net Asset 
C) Depreciation 
D) Equity

Question 15

An intangible asset is identified when,

Accepted Answer

A) It is separable 
B) It arises from contractual or other legal rights, regardless whether those rights are transferable or separable from the entity 
C) Either (a) or (b) 
D) None of these 
A) It is separable 
B) It arises from contractual or other legal rights, regardless whether those rights are transferable or separable from the entity 
C) Either (a) or (b) 
D) None of these

Question 16

A property developer must classify properties that it hold for sale in the ordinary course of business as

Accepted Answer

A) Inventories 
B) Property, Plant and Equipment 
C) Financial Assets 
D) Investment property 
A) Inventories 
B) Property, Plant and Equipment 
C) Financial Assets 
D) Investment property

Question 17

Impairment loss is recognised when,

Accepted Answer

A) Carrying amount of an asset is less than its recoverable amount 
B) Carrying amount of an asset is less than its original acquisition cost 
C) Carrying amount of an asset exceeds its recoverable amount 
D) Fair value of an asset is less than the undiscounted expected future cash inflows 
A) Carrying amount of an asset is less than its recoverable amount 
B) Carrying amount of an asset is less than its original acquisition cost 
C) Carrying amount of an asset exceeds its recoverable amount 
D) Fair value of an asset is less than the undiscounted expected future cash inflows

Question 18

The cost of intangible asset at initial recognition is measured at its fair value when,

Accepted Answer

A) It is internally generated 
B) It is acquired as a part of business combination 
C) It is acquired by way of a Government grant 
D) Both (b) and (c) 
A) It is internally generated 
B) It is acquired as a part of business combination 
C) It is acquired by way of a Government grant 
D) Both (b) and (c)

Question 19

IASB was established in the year….

Accepted Answer

A) 1999 
B) 1977 
C) 1972 
D) 2001 
A) 1999 
B) 1977 
C) 1972 
D) 2001

Question 20

Which method depreciation is most appropriate for the entity to compute depreciation for the significant parts of the aircraft?

Accepted Answer

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 
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

Accounting profession of India is governed by………………….

What do you mean by ASB?

Indian Accounting Standard 3 (AS3) deals with….

The useful life of an intangible asset may be,

Inventories must be measured at

Which of the following asset is not coming under the scope of Ind AS 16?

Property, Plant and Equipment are defined as,

Cost of inventory is a sum of

Consumable stores are

FASB is based in…………….

Cost of inventory does not include

ASB was set up in India on………………

An entity must measure its Property, Plant and Equipment after initial recognition at,

…………….is the residual interest in the asset of an entity after deducting all liabilities

An intangible asset is identified when,

A property developer must classify properties that it hold for sale in the ordinary course of business as

Impairment loss is recognised when,

The cost of intangible asset at initial recognition is measured at its fair value when,

IASB was established in the year….

Which method depreciation is most appropriate for the entity to compute depreciation for the significant parts of the aircraft?

Accounting Standards and Principles: Part B

Accounting Standards and Principles: Borrowing Costs, Asset Measurement, Employee Benefits, and More

Accounting Terminology and Standards

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Exam 1: Accounting Standards and Principles: Part A

Accounting profession of India is governed by………………….

What do you mean by ASB?

Indian Accounting Standard 3 (AS3) deals with….

The useful life of an intangible asset may be,

Inventories must be measured at

Which of the following asset is not coming under the scope of Ind AS 16?

Property, Plant and Equipment are defined as,

Cost of inventory is a sum of

Consumable stores are

FASB is based in…………….

Cost of inventory does not include

ASB was set up in India on………………

An entity must measure its Property, Plant and Equipment after initial recognition at,

…………….is the residual interest in the asset of an entity after deducting all liabilities

An intangible asset is identified when,

A property developer must classify properties that it hold for sale in the ordinary course of business as

Impairment loss is recognised when,

The cost of intangible asset at initial recognition is measured at its fair value when,

IASB was established in the year….

Which method depreciation is most appropriate for the entity to compute depreciation for the significant parts of the aircraft?

Accounting Standards and Principles: Part B

Accounting Standards and Principles: Borrowing Costs, Asset Measurement, Employee Benefits, and More

Accounting Terminology and Standards

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