MCQ on Overview of Accounting Standards | Corporate and Management Accounting MCQs for CS Executive and Other Competitive Exams | Commerce Classes

MCQ on Overview of Accounting Standards: Check the below Corporate and Management Accounting MCQ on Overview of Accounting Standards with Answers Pdf free download. Corporate and Management Accounting MCQ on Overview of Accounting Standards Questions for Corporate and Management Accounting with Answers were prepared based on the latest exam pattern. We have provided Corporate and Management Accounting MCQ on Overview of Accounting Standards with Answers to help students understand the concept very well. Students should practice CS Executive MCQ on Overview of Accounting Standards Questions with Answers based on the latest syllabus.

MCQ on Overview of Accounting Standards


1. The original cost at which an asset or liability is acquired is known as –
(A) Carrying cost
(B) Replacement cost
(C) Amortization
(D) Historical cost

View Answer

(D) Historical cost


2. As per AS-21, the accounting process in which the financial statements of a parent company and its subsidiaries are added together to yield a unified set of financial statements is called ____.
(A) Amalgamation
(B) Amortization
(C) Consolidation
(D) Translation

View Answer


3. AS-2 is on:
(A) Disclosure of Accounting Policies
(B) Valuation of Inventories
(C) Revenue Recognition
(D) Depreciation Accounting

View Answer

(B) Valuation of Inventories


4. Which section of the Companies Act, 2013 provides that the financial statements of every company shall comply with the accounting standards?
(A) Section 129
(B) Section 130
(C) Section 131
(D) Section 132

View Answer

(A) Section 129


5. Consistency with reference to the application of accounting principles refer to the:
(A) All the companies in the same industries should use identical procedures and methods
(B) Income and assets have not been overstated
(C) Accounting methods and procedures used have to be consistently applied from year to year
(D) Any accounting method or procedure can be utilized

View Answer


6. Which aspect of Financial Instruments is death by AS-31?
(A) Recognition & Measurement
(B) Presentation
(C) Disclosures
(D) Limited Revision

View Answer

(B) Presentation


7. Accounting Standards _____ the statue.
(A) Can over-ride
(B) Cannot over-ride
(C) May over-ride
(D) None of the above

View Answer

(B) Cannot over-ride


8. As per AS-11, the process of converting foreign-subsidiary financial statements into the home currency is known as ______.
(A) Consolidation
(B) Translation
(C) Transmission
(D) Reconstruction

View Answer

(B) Translation


9. The global key professional accounting body is the _______
(A) International Accounting Standards Board
(B) Financial Accounting Standards Board
(C) Institute of Chartered Accountants of India
(D) International Accounting Standards Committee

View Answer

(A) International Accounting Standards Board


10. AS-20 deals with:
(A) Earnings Per Share
(B) Lease
(C) Segment Reporting
(D) Taxes on Income

View Answer

(A) Earnings Per Share


11. Which of the following is treated as Potential Equity Share as per AS-20?
(A) Convertible debentures
(B) Share warrants
(C) Employee Stock Options
(D) All of the above

View Answer

(D) All of the above


12. If rights and beneficial interest in property are transferred but documentation and legal formalities are pending then seller & purchaser should record in their accounts as sale & purchase. This the example of –
(A) Prudence
(B) Substance over from
(C) Materiality
(D) Realization

View Answer

(B) Substance over from


13. Payment of penalties/fines for violation of law should be disclosed separately. It should not be clubbed with “Office Expenses” or “Miscellaneous Expenses”. This the example of –
(A) Prudence
(B) Substance over from
(C) Materiality
(D) Realization

View Answer

(C) Materiality


14. Which of the following is included in the cost of inventory as per AS-2?
(A) Duties and taxes subsequently re-coverable from taxing authorities
(B) Freight inwards
(C) Rebates
(D) Duty drawbacks

View Answer

(B) Freight inwards


15. Provisions for doubtful debts, provision for discount on debtors are based on:
(A) Prudence
(B) Substance over from
(C) Materiality
(D) Realization

View Answer

(A) Prudence


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