Top 50+ Solved Accounting Standards MCQ Questions Answer

From 1 to 15 of 30

Q. Change in accounting estimate is __________

a. Prior Period Item

b. Change in accounting policy

c. Extra-ordinary item

d. Ordinary item

  • b. Change in accounting policy

Q. The share of outsiders in the Net Assets in subsidiary company is known as under :

a. Assets

b. subsidiary company's liability

c. Minority Interest

d. outsiders liability

  • d. outsiders liability

Q. Pre-acquisition profit in subsidiary company is considered as:

a. Revenue profit

b. Capital profit

c. Goodwill

d. Non of the above

  • b. Capital profit

Q. Excess of paid up value of the shares over cost of investment is considered as:

a. Goodwill

b. Capital Reserve

c. Minority Interest

d. Non of above

  • a. Goodwill

Q. Profit earned after acquisition of share is treated as

a. Capital profit

b. Revenue profit

c. General Reserve

d. Revaluation Loss

  • a. Capital profit

Q. International Public Sector Accounting Standards were issued by

a. International Accounting Standards Board.

b. International Auditing Practices Committee.

c. International Federation of Accountants.

d. None of the above

  • c. International Federation of Accountants.

Q. The process of recording financial data up to trial balance is

a. Book keeping

b. Classifying

c. Summarizing

d. Analyzing

  • a. Book keeping

Q. In which of the following cases, accounting estimates are needed?

a. Employs benefit schemes

b. Impairment of losses

c. Inventory obsolescence

d. All of the above

  • d. All of the above

Q. The long term assets that have no physical existence but, possess a value isknown as,

a. Current assets

b. Fixed assets

c. Intangible assets

d. Investments

  • c. Intangible assets

Q. Which of these best explains fixed assets?

a. Are bought to be used in the business.

b. Are expensive items bought for the business

c. Are items which will not wear out quickly

d. Are of long life and are not purchased specifically for resale

  • a. Are bought to be used in the business.

Q. The assets that can be easily converted into cash within a short period (i.e., 1year or less is known as,

a. Current assets

b. Fixed assets

c. Intangible assets

d. Investments

  • a. Current assets

Q. Hitesh Ltd.’s purchase consideration is Rs.12,345 and Net Assets Rs.3,568,then...........

a. Goodwill Rs. 8,777

b. Capital Reserve Rs. 8,777

c. Goodwill Rs. 15,913

d. Capital Reserve Rs. 15,913

  • a. Goodwill Rs. 8,777
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