Top 50+ Solved Accounting Standards MCQ Questions Answer
Q. When two or more companies carrying on similar business decide to combine, a newcompany is formed, it is known as…………………………
a. Merger
b. Amalgamation
c. Absorption
d. Demerger
Q. When one of the existing companies take over business of another company orcompanies, it is known as…………………………………
a. Merger
b. Amalgamation
c. Absorption
d. Demerger
Q. In case of .............., one existing company takes over the business of anothercompany and no new company is formed
a. Merger
b. Amalgamation
c. Absorption
d. Demerger
Q. While calculating purchase consideration ............... values of assets is to beconsidered.
a. Total
b. Half
c. Net
d. 25%
Q. Net Assets minus Capital Reserve is………………………
a. Purchase consideration
b. Goodwill
c. Liabilities
d. Total Assets
Q. The original amount of preference share capital should be transferred to ............ account in the time of amalgamation in the books of vendor co.
a. Equity shareholders
b. Preference share holders
c. Debenture holders
d. vendors
Q. ………………………………………………..method the amount of depreciation expenses remains same throughout the useful life of a fixed assets
a. Straight line method
b. Annuity methods
c. Purchase value method
d. Written down value methods
Q. Depreciation arise because of………………………..
a. Abnormal quality
b. Normal wear and tear
c. Excessive use of a product
d. Low quality product
Q. Loss Prior to incorporation is treated as ........... Loss, and Vendor’s Salaries arechargeable to ................ incorporation period.
a. Pre
b. During
c. Post
d. In between
Q. Which type of asset class includes those assets which have only definite use andbecome valueless when the yield is over?
a. Fixed asset
b. Current asset
c. Fictitious asset
d. Wasting asset
Q. Financial accounting is concerned with –
a. Recording of business expenses and revenue
b. Recording of costs of products and services
c. Recording of day to day business transactions
d. None of the above
Q. Accounting principles are generally based upon:
a. Practicability
b. Subjectivity
c. Convenience in recording
d. None of the above
Q. The system of recording based on dual aspect concept is called:
a. Double account system
b. Double entry system
c. Single entry system
d. All the above
Q. Fixed assets and current assets are categorized as per concept of:
a. Separate entity
b. Going concern
c. Consistency
d. Time period
Q. Accounting standards and Standards on Auditing establish standards which have to be complied with to ensure that financial statements are prepared in accordance with ______.
a. Generally acceptable Audit Procedure
b. Accounting Principles
c. Ind AS
d. Accounting Standards