Top 550+ Solved Corporate Accounting MCQ Questions Answer

From 271 to 285 of 596

Q. Accounting principles are generally based upon:

a. Practicability

b. Subjectivity

c. Convenience in recording

d. None of the above

  • a. Practicability

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

  • b. Double entry system

Q. Fixed assets and current assets are categorized as per concept of:

a. Separate entity

b. Going concern

c. Consistency

d. Time period

  • b. Going concern

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

  • a. Generally acceptable Audit Procedure

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. A subsidiary company shall be excluded from consolidation when:

a. Control is intended to be temporary

b. It operates under severe long-term restrictions which significantly impair its ability to transfer funds to the parent

c. Always included for consolidation

d. Both a and b.

  • d. Both a and b.

Q. The form of balance sheet is………………..

a. Vertical

b. Horizontal

c. Horizontal and vertical

d. None of the above

  • c. Horizontal and vertical

Q. The term current asset doesn’t cover

a. Car

b. Debtors

c. Stock

d. Prepaid expenses

  • a. Car

Q. P&L statement is also known as

a. Statement of operations

b. Statement of income

c. Statement of earnings

d. All of the above

  • b. Statement of income
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