Top 550+ Solved Corporate Accounting MCQ Questions Answer
Q. An intangible asset with a finite useful life should be amortised over
a. a period determined by management
b. five years
c. its expected useful life
d. no foreseeable limit
Q. What are intangible assets?
a. nonmonetary assets without physical substance
b. monetary assets without physical substance
c. monetary assets with physical substance
d. nonmonetary assets with physical substance
Q. Which of the following is an intangible asset under Ind AS 38?
a. patent rights
b. market share
c. customer loyalty
d. technical knowledge training
Q. Which of the following measurement models is not permitted for the subsequentmeasurement of intangible assets under Ind AS 38?
a. revaluation model
b. fair value model
c. cost model
d. capital assets pricing model
Q. What is the correct treatment for all eligible borrowing costs under Ind AS 23?
a. expensed
b. capitalised
c. invested
d. none of the above
Q. Which of the following is not a qualifying asset under Ind AS 23 Borrowing Costs?
a. manufacturing plants
b. made to order inventory
c. mass produced inventory
d. investment property
Q. Which of the following items should be disclosed as per the requirements of Ind AS 2?
a. carrying amount of inventories pledged as security for liabilities
b. average lead time of procurement for major classes of inventories
c. list of major customers to whom the inventories were sold during the reporting period
d. average holding period of inventories of the entity as at the end of the reporting period
Q. Which of the following items are excluded from the scope of Ind AS 2 Inventories?
a. inventories that are stated at net realisable value
b. assets held for sale in the ordinary course of business
c. inventories whose fair value is more than the cost
d. agricultural produce at the point of harvest
Q. Under Ind AS 2, fixed production overheads should be allocated to items of inventory on thebasis of ____ production capacity.
a. actual
b. abnormal
c. normal
d. estimated
Q. Which of the following cost models is not permitted under Ind AS 2?
a. fifo
b. lifo
c. actual cost
d. simple average
Q. Which of the below mentioned formula are covered by Ind AS 2? (i) FIFO, (ii) LIFO, (iii)Weighted Average.
a. i, ii
b. i, iii
c. ii, iii
d. all
Q. Which of the following costs must be expensed under Ind AS 2?
a. selling and distribution overheads incurred in the ordinary course of business
b. variable production overheads that are allocated to each unit based on actual usage
c. import duties on raw materials that are paid to the authorities
d. costs of purchase that are paid to the suppliers of raw materials
Q. How are unallocated overheads treated as per Ind AS 2?
a. recognise as an expense in the period in which they are incurred
b. recognise as an expense so long as there is a profit in the current period
c. treated as deferred expenditure
d. capitalised with the cost of inventories
Q. After convergence of Indian accounting standards with IFRS, new standard issued forpreparing the cash flow statement is:
a. ind as 10
b. ind as 3
c. ind as 7
d. ind as 12
Q. Under Ind AS 12 a temporary difference is defined as
a. the difference between the tax base of an item and that items carrying amount in the balance sheet
b. the difference between the carrying amount of an item and that items fair value less costs to sell
c. the difference between the carrying amount of an item and that items revalued amount
d. a difference which will reverse in the next accounting period